Yorba Linda City Council
February 15, 2022

CITY OF YORBA LINDA
Statement of Activities
For the Fiscal Year Ended June 30, 2021
Operating Capital
Charges for Contributions Contributions Governmental Business-Type Functions/programs Expenses Services and Grants and Grants Activities Activities Total Governmental activities: General government $ 9,360,113 $ 10,769 $ 3,272,304 $ - $ (6,077,040) $ - $ (6,077,040) Public safety 56,807 11,755,722 - - (11,698,915) - (11,698,915) Community development 2, 2,705,644 007,274 106,529 - (591,841) - (591,841) Parks and recreation 6,623,647 1,065,415 77,675 329,297 (5,151,260) - (5,151,260) Library 15,390 4,780,791 18,239 119,240 (4,627,922) - (4,627,922) Public works 14,300,587 304,666 - 4,970,285 (9,025,636) - (9,025,636) Interest on long-term debt 108,271 - - - (108,271) - (108,271) Total governmental activities 49,634,775 3,460,321 3,474,747 5,418,822 (37,280,885) - (37,280,885) Business-type activities:

Black Gold Golf Course 6,695,753 6,526,689 - - - (169,064) (169,064) Total business-type activities 6,695,753 6,526,689 - - - (169,064) (169,064) Total $ 56,330,528 $ 9,987,010 $ 3,474,747 $ 5,418,822 (37,280,885) (169,064) (37,449,949) General revenues: Taxes: Property taxes, levied for general purpose 29,540,612 - 29,540,612 Sales taxes 7,595,867 - 7,595,867
Franchise taxes 2,172,656 - 2,172,656
Transient occupancy taxes 311,017 - 311,017
Business licenses taxes 487,243 - 487,243
Special assessments taxes 7,119,457 - 7,119,457
Other taxes 891,240 - 891,240
Motor vehicle in lieu - unrestricted 50,350 - 50,350
Investment income 718,564 43,292 761,856 Gain on sale of property 3,363,548 9,301 3,372,849 Other 267,470 - 267,470 Total general revenues 52,518,024 52,593 52,570,617 Change in net position 15,237,139 (116,471) 15,120,668
Net position at beginning of fiscal year 20, 491,375,873 779,572 512,155,445 Net position at end of fiscal year $ 506,613,012 $ 20,663,101 $ 527,276,113 Program Revenues Net (Expenses) Revenues and Changes in Net Position See accompanying notes to the basic financial statements. 15

CITY OF YORBA LINDA
Balance Sheet
Governmental Funds
June 30, 2021
Capital
Projects Fund Total
Landscape Nonmajor Total
Affordable Miscellaneous Public Maintenance Capital Governmental Governmental General ARPA Housing Grants Library Assessment District Improvements Funds Funds Assets:

Pooled cash and investments 36,327,070 $ 3, $ 1, 112,074 $ - 235,768 $ 4,017,615 $ 8,368,603 $ 734,729 $ 23,878,226 $ 77, $ 674,085 Receivables:

Accounts 723,022 - 50,333 - - 15,337 180,500 34,382 1, 003,574 Taxes 162,846 - - - 77,168 72,561 - - 312,575
Notes and loans - - 46,648,407 - - - - - 46, 648,407
Accrued interest 79,033 747 6,071 - 52,806 13,172 - 38,866 190,695 Prepaid costs 29,808 - - - 4,611 - - - 34,419
Due from other governments 1,925,623 - - 1,408,723 - - - 1,068,750 4, 403,096 Due from other funds 931,053 - - - - - - - 931,053
Advances to other funds - - - - - - - 2,300,000 2, 300,000 Advances to Successor Agency of Former RDA 598,080 - - - - - - - 598,080 Land held for resale - - 2,600,000 - - - - - 2, 600,000 Restricted Assets:

Cash and investments with fiscal agents - - - - 11 - - - 11 Total assets $ 3, 40,776,535 $ 50, 112,821 $ 1, 540,579 $ 4,152,211 408,723 $ 8,469,673 $ 915,229 $ 27,320,224 $ 136, $ 695,995 Liabilities, deferred inflows of resources,
and fund balances:

Accounts payable 2, $ - 604,203 $ 216 $ - $ 130,032 $ 1,674,439 $ 915,229 $ 349,391 $ 5, $ 673,510 Accrued liabilities - 650,619 - - 98,565 27,273 - - 776,457 Unearned revenues - 3, - 102,556 - - - - - 3, 102,556
Due to other funds - - - 656,260 - - - 274,793 931,053
Total liabilities 3, 3,254,822 216 102,556 228,597 656,260 1,701,712 915,229 624,184 10, 483,576 Deferred inflows of resources:

Unavailable revenues 340,926 - - 1, - 298,723 394 - 456,817 2, 096,860 Total deferred inflows of resources 340,926 - - 1, - 298,723 394 - 456,817 2, 096,860 Fund balances:

Nonspendable:

Prepaid costs 29,808 - - - 4,611 - - - 34,419
Advances to Successor Agency of Former RDA 598,080 - - - - - - - 598,080 Restricted for: -
General Government - 10,265 - - - - - 161,075 171,340
Parks and recreation - - - - - - - 5,796,415 5, 796,415 Public works - - - - - 6,767,567 - 20,351,843 27, 119,410 Library - - - - 3,919,003 - - - 3, 919,003
Low and moderate housing - - 50,540,363 - - - - 183,596 50, 723,959 Committed: -
Operating reserves 19,822,000 - - - - - - - 19, 822,000 Special reserves 11,891,494 - - - - - - - 11, 891,494
Assigned to:

Budget carryovers 1,102,561 - - - - - - - 1, 102,561
Unassigned (deficit) 3,736,844 - - ( - 546,260) - - (253, 2, 706) 936,878 Total fund balances (deficit) 37,180,787 10,265 50,540,363 ( 3,923,614 546,260) 6,767,567 - 26,239,223 124, 115,559 Total liabilities, deferred inflows of
resources, and fund balances $ 3, 40,776,535 $ 50, 112,821 $ 1, 540,579 $ 4,152,211 408,723 $ 8,469,673 $ 915,229 $ 27,320,224 $ 136, $ 695,995 Special Revenue Funds
See accompanying notes to the basic financial statements. 16

CITY OF YORBA LINDA
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2021
Fund balances of governmental funds $ 124,115,559
Amounts reported for governmental activities in the statement of net position are different because:
446,948,593
Claims and judgments (967,413)
Compensated absences (1,431,892)
Long-term debt (22,463,372)
Accrued interest on long-term debt (174,615)
Net OPEB obligation (14,625,902)
Net pension liability (22,596,355) (62,259,549)
2,096,860
4,178,488
(8,466,939)
Net position of governmental activities $ 506,613,012
Capital assets net of accumulated depreciation used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.

Noncurrent liabilities, as listed below, are not due and payable in the current period and therefore are not reported in the governmental funds:

Revenues that do not meet the "availability" criteria for revenue recognition are deferred inflows of resources in the governmental funds.

Deferred amounts on pensions related to contributions after the measurement date, changes in assumptions, differences between expected and actual experience and net difference between projected and actual earnings on pension plan investments.

Deferred amounts on OPEB related to contributions after the measurement date, changes in assumptions, and net difference between projected and actual earnings on pension plan investments.

See accompanying notes to the basic financial statements. 17

CITY OF YORBA LINDA
Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds For the Fiscal Year Ended June 30, 2021
Capital
Projects Fund
Landscape Nonmajor Total
Affordable Miscellaneous Public Maintenance Capital Governmental Governmental General ARPA Housing Grants Library Assessment District Improvements Funds Funds Revenues:

Taxes 32,103,271 $ - $ - $ - $ 6,982,239 $ 8,050,711 $ - $ 140,982 $ 47,277,203 $ Licenses and permits 1,905,891 - - - - - - - 1,905,891
Intergovernmental 492,362 - - 18,239 529,864 - 5,400,974 - 6,441,439 Charges for services 3,169,493 - - - 9,197 - - - 3,178,690 Investment income 111,580 10,265 735,323 - (166, (19,166) 448) - 47,015 718,569 Fines and forfeitures 19,483 - - - 6,193 - - 37,324 63,000 Developer participation - - - - - - - 448,537 448,537
Gain on sale of City property 12,114 - - - 3,351,435 - - - 3,363,549 Contributions from Successor Agency - - - - - - - - -
Miscellaneous 1,094,226 - - - 64,485 - - 8,647 1,167,358 Total Revenues 10,265 38,908,420 735,323 10,265,340 529,864 8,031,545 - 6,083,479 64,564,236 Expenditures:

General government 8,915,761 - - - - - 1,002,302 9,918,063 Public safety 12,584,332 - - - - - - - 12,584,332
Community development 3,073,170 - 21,622 - - - - 260,659 3,355,451 Parks and recreation 6,317,469 - - - - - - - 6,317,469
Library - - - - 5,638,179 - - - 5,638,179
Public works 4,663,484 - - - - 8,664,023 - - 13,327,507 Capital outlay 1,552,009 - - 20,009 631,036 1,780,898 14,960,963 1,523,298 20,468,213 Debt service: 108,271 - - - - - - - 108,271
Total Expenditures - 37,214,496 21,622 20,009 6,269,215 10,444,921 14, 2,786,259 960,963 71,717,485 Excess (deficiency) of revenues
over (under) expenditures 1,693,924 10,265 713,701 3,996,125 509,855 (2,413,376) (14, 3,297,220 960,963) (7,153,249) Other financing sources (uses):

Transfers in 1,054,759 - 444,834 - 1,594,785 14,960,963 197,588 18,252,929 Transfers out (2,125,443) - - (330,985) (11,608,560) (197,588) - (3,990,353) (18,252,929) Total other financing sources (uses) - (1,070,684) ( 444,834 (11,608, 330,985) 1,397,197 560) 14, (3,792,765) 960,963 - Net change in fund balances 623,240 10,265 1, 158,535 (7,612, 178,870 (1,016,179) 435) - (495,545) (7,153,249) Fund balances (deficit) beginning of fiscal year 36,557,547 - 49, ( 381,828 11,536,049 725,130) 7,783,746 - 26,734,768 131,268,808 Fund balances (deficit) end of fiscal year $ 10,265 37,180,787 $ 50, $ ( 540,363 $ 3,923,614 546,260) $ 6,767,567 $ - $ 26,239,223 $ 124,115,559 $ Special Revenue Funds
See accompanying notes to the basic financial statements. 18

CITY OF YORBA LINDA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Fiscal Year Ended June 30, 2021
Net changes in fund balances - total governmental funds $ (7,153,249) Amounts reported for governmental activities in the statement of activities are different because:

Capital outlay 24,057,999
Depreciation 19,419,051 (4,638,948)
Changes in accrued interest on long-term debt (73,962)
Changes in claims and judgments obligation (27,969)
Changes in compensated absence benefits, net (333,13 (435,063) 2) 450,739
307,677
(260,713)
2,908,697
Change in net position of governmental activities $ 15,237,139 Governmental funds recognize OPEB costs when employer contributions are made; however, in the statement of activities, OPEB costs are recognized on the accrual basis.

This is the difference between accrual-basis OPEB costs and actual employer contributions.

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period.

Some expenses reported in the statement of activities do not require the use of current resources and therefore are not reported as expenditures in governmental funds. The following adjustments combine the net change of these liabilities:

Governmental funds recognize pension costs when employer contributions are made; however, in the statement of activities, pension costs are recognized on the accrual basis. This is the difference between accrual-basis pension costs and actual employer contributions.

Revenues reported as unavailable revenue in the governmental funds. Amounts are not recorded as revenue under the modified accrual basis of accounting. This is the net change in unavailable revenue from the prior fiscal year.

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

See accompanying notes to the basic financial statements. 19

CITY OF YORBA LINDA
Statement of Net Position
Proprietary Funds
June 30, 2021
Black
Gold Golf
Course
Assets:

Current:

Pooled cash and investments $ 432,265
Receivables 1,836
Inventories 168,951
Total current assets 603,052
Noncurrent:

Capital assets not being depreciated 12,731,404
Capital assets - net of accumulated depreciation 10,308,379 Total capital assets, net 23,039,783
Total noncurrent assets 23,039,783
Total assets 23,642,835
Liabilities:

Current:

Accounts payable 32,893
Accrued liabilities 334,991
Unearned revenues 301,850
Deposits payable 10,000
Advances from other funds 2,300,000
Total current liabilities 2,979,734
Total liabilities 2,979,734
Net position:

Net investment in capital assets 23,039,783
Unrestricted (2,376,682)
Total net position $ 20,663,101
Business-Type Activities -
Enterprise Fund
See accompanying notes to the basic financial statements. 20

CITY OF YORBA LINDA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Black
Gold Golf
Course
Operating revenues:

Charges for services $ 6,526,689
Total operating revenues 6,526,689
Operating expenses:

Administration and general 5,203,924
Cost of sales and services 729,181
Depreciation expense 762,648
Total operating expenses 6,695,753
Operating (loss) (169,064)
Nonoperating revenue:

Investment Income 43,292
Gain on sale of capital assets 9,301
Total non-operating revenue 52,593
Change in net position (116,471)
Net position at beginning of fiscal year 20,779,572
Net position at end of fiscal year $ 20,663,101
Business-Type Activities -
Enterprise Fund
See accompanying notes to the basic financial statements. 21

CITY OF YORBA LINDA
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Black
Gold Golf
Course
Cash flows from operating activities:

Cash received from customers and users 6,560,157 $
Cash paid to suppliers for goods and services (706,470) Cash paid to employees for services (5,077,606)
Net cash provided by operating activities 776,081
Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (469,738) Interest paid on capital debt 43,292
Net cash used by capital and related
financing activities (426,446)
Net increase in cash and cash equivalents 349,635
Cash and cash equivalents at beginning of fiscal year 82,630 Cash and cash equivalents at end of fiscal year $ 432,265 Reconciliation of operating (loss) to net cash
provided by operating activities
Operating (loss) $ (169,064)
Adjustments to reconcile operating (loss) to net
cash provided by operating activities:

Depreciation 762,648
Decrease (increase) in accounts receivable (1,368)
Decrease (increase) in inventories (1,804)
Increase (decrease) in accounts payable 24,515
Increase (decrease) in accrued liabilities 126,318
Increase (decrease) in unearned revenues 34,836
Total adjustments 945,145
Net cash provided by operating activities $ 776,081
Business-Type Activities
- Enterprise Funds
See accompanying notes to the basic financial statements. 22

CITY OF YORBA LINDA
Statement of Fiduciary Net Position (Deficit)
Fiduciary Funds
June 30, 2021
PrivateCustodial Purpose Trust
Fund Fund
Special Successor
Deposits Agency of the
Funds former RDA
Assets:

Pooled cash and investments 3,234,549 $ 3,243,627 $
Receivables:

Accounts receivable - 3,391
Accrued interest - 4,914
Restricted assets:

Cash and investments with fiscal agents - 3,240,327
Total assets 3,234,549 6,492,259
Liabilities:

Account payable 81,853 -
Accrued liabilities 315,704
Deposits payable 3,152,696 -
Long-term liabilities:

Due in one year - 4,316,484
Due in more than one year - 39,784,566
Total liabilities 3,234,549 44,416,754
Net position (deficit):

Held for Successor Agency - (37,924,495)
Restricted for Others $ - $ -
See accompanying notes to the basic financial statements. 23

CITY OF YORBA LINDA
Statement of Changes in Fiduciary Net Position (Deficit) Fiduciary Funds
For the Fiscal Year Ended June 30, 2021
PrivateCustodial Purpose Trust
Fund Fund
Special Successor
Deposits Agency of the
Funds Former RDA
Additions:

Taxes - $ 4,880,836 $
Interest and change in fair value of investments - 63,224 Total additions 4,944,060 -
Deductions:

Administrative expenses - 12,000
Bond interest - 1,357,447
Total deductions 1,369,447 -
Change in net position 3,574,613 -
Net position (deficit) at beginning of fiscal year - (41,499,108) Net position (deficit) at end of fiscal year $ (37,924,495) - $ See accompanying notes to the basic financial statements. 24

CITY OF YORBA LINDA
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2021
25 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Description of Entity
The City of Yorba Linda (City) was incorporated in November 1967 under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public works, public safety, community development, parks and recreation, library, and general administrative services.

As required by accounting principles generally accepted in the United States of America (U.S. GAAP), these financial statements present the City of Yorba Linda (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from the City. However, the City of Yorba Linda's elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of: 1) the City, 2) organizations for which the City is financially accountable, and 3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit's balances and transactions are reported in a manner similar to the balances and transactions of the City.

Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's or the component unit provides services almost entirely to the City.

Blended Component Units
Yorba Linda Housing Authority
The Yorba Linda Housing Authority (the Housing Authority) was established on March 1, 2011, through the adoption of Resolution No. 2011-5039, and its governing body is the City Council of the City. The Housing Authority did not have any financial activity during the year ended June 30, 2021. The Housing Authority does not have separately issued financial statements.

Yorba Linda Municipal Financing Authority
The Yorba Linda Municipal Financing Authority (the MFA) was established on April 17, 2018, pursuant to a joint exercise of powers agreement between the City and the Yorba Linda Housing Authority, and its governing body is the City Council of the City.

The purpose of the MFA is to enable the City and the Authority to finance public capital improvements. Debt service for debt issued by the MFA is to be repaid entirely with resources of the City. The MFA's financial data and transactions are included in the General Fund and the Public Library Fund. The MFA does not have separately issued financial statements.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
26 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Description of Entity (Continued)
Fiduciary Component Unit
Successor Agency to the Yorba Linda Redevelopment Agency (Successor Agency) The Successor Agency is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency pursuant to City Council actions taken on January 3, 2012. The activity of the Successor Agency is overseen by Successor Agency Board comprised of individuals appointed by the City Council as Successor Agency of the former Redevelopment Agency. The nature and significance of the relationship between the City and the Successor Agency is such that it would be misleading to exclude the Successor Agency from the City’s financial statements. The Successor Agency is presented herein in the City’s fiduciary funds as a private-purpose trust fund. The Successor Agency does not have separately issued financial statements. b. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities that rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
27 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered 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, as under the accrual basis of accounting. However, debt service expenditures, pension costs, OPEB costs, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The City’s fiduciary fund financial statements report one custodial fund and one private purpose trust fund. The City’s fiduciary funds are custodial in nature. The City’s custodial fund is accounted for on an accrual basis of accounting. Private purpose trust fund funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Property taxes, franchise taxes, transient occupancy taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
28 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The City reports the following major governmental funds:
 The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund.
 The Affordable Housing Fund accounts for the assets and liabilities of the City’s affordable housing programs, including those of the former Yorba Linda Redevelopment Agency low and moderate income housing fund.  The Miscellaneous Grants Fund accounts for miscellaneous grants and developer contributions related to capital improvement projects being constructed by the City.  The Public Library Fund accounts for the property taxes restricted by enabling legislation and other revenues and expenditures relating to the operations of the public library. On September 4, 1984, the Yorba Linda City Council voted to approve the merger of the Yorba Linda Library District into the City of Yorba Linda. At that time, the City Council agreed to earmark all future revenues received and funds transferred from the Library District for Library purposes, consistent with the enabling legislation that established the Library District.
 The Landscape Maintenance Assessment District Fund accounts for the revenues and expenditures associated with the maintenance of City-owned street lights and traffic signals, as well as landscaped areas within the City’s various arterial and local landscaping districts. Benefiting property owners are assessed their proportionate share of the costs in excess of ad valorem property tax revenues received by certain of the districts.
 The Capital Improvements Fund accounts for expenditures for construction of various capital improvements projects throughout the City.

The City reports the following major proprietary funds:
 The Black Gold Golf Course Enterprise Fund accounts for all activities related to the operations of the Black Gold Golf Club.
 The Community Center Catering Enterprise Fund accounts for all activities related to the catering operations at the City’s Community Center.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
29 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Additionally, the City reports the following fund types:
 One custodial fund used to report resources held by the City in a purely custodial capacity that involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments.  One private-purpose trust fund used to account for the assets and liabilities of the former Yorba Linda Redevelopment Agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated.

As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. Exceptions to this general rule are charges between the government's proprietary funds function 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.

Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

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 Enterprise Funds are charges to customers for sales and services.

Operating expenses for Enterprise 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. d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance
Deposits and Investments
The City values its cash and investments in accordance with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, and GASB Statement No. 72, Fair Value Measurement and Application, which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
30 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Deposits and Investments (Continued)
measure fair value. The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach or the income approach.

Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value. All highly liquid investments (including restricted assets) with a maturity of 90 days or less when purchased are considered cash equivalents. Cash and investments held on behalf of proprietary funds by the City Treasurer are considered highly liquid and are classified as cash equivalents for the purpose of presentation in the statement of cash flows.

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due 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." Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due, and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (within 60 days) to be used to pay liabilities of the current period. The County of Orange collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property, as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1.

All taxes are delinquent if unpaid on December 10 and April 10, respectively.

Unsecured personal property taxes become due on the first of March each year and are delinquent if unpaid on August 31.

Inventories, Prepaid Items, and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventory costs are recorded as an expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Land purchased for resale is valued at acquisition costs or net realizable value, if lower.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
31 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for future capital improvements by enabling legislation.

Capital Assets
Capital assets that include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $2,000, dependent on asset class type and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement should be recorded at estimated acquisition value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

U.S. GAAP requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. Infrastructure assets are defined as “…long lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets…” Infrastructure assets are normally stationary in nature and are of value only to the government entity. They are basic physical assets that allow the government entity to function. Examples include streets, bridges and storm drains. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, etc. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
32 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Capital Assets (Continued)
The City has elected the Modified Approach for reporting of the Pavement Subsystem infrastructure assets and as a result, no depreciation is recorded for that system under the following requirements:
 The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory, (2) performing condition assessments and summarizing the results using a measurement scale, and (3) estimating the annual amount to maintain and preserve at an established and disclosed condition level.  The City documents that eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition level.

For all other capital assets, the City has elected to depreciate these assets using the straight-line method over the following estimated useful lives:

Assets Years
Building and building improvements 7 - 50
Improvements other than building 7 - 50
Machinery and equipment 5 - 7
Furniture, fixtures computers, and software 1 - 10
Vehicles (including motorcycles) 3 - 10
Infrastructure 5 - 100
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position/fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
33 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Deferred Outflows / Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

The City has two types of items that qualify for reporting in these categories. The first item, unavailable revenue, is reported only in the governmental funds balance sheet.

The governmental funds report unavailable revenues from sources such as: property taxes, grant revenue, and long-term loan receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

The second item, deferred outflows and deferred inflows of resources related to pension and OPEB, is reported only in the statement of net position. See Notes 9d and 10d to the basic financial statements for more information on deferred outflows and deferred inflows of resources related to pension and OPEB, respectively, on the statement of net position.

Net Position Flow Assumption
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 policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance).

In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental 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 policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
34 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Compensated Absences
It is the government's policy to permit employees to accumulate earned but unused vacation and sick leave benefits. City employees have an option to convert 100% of their unused sick leave benefits to California Public Employee’s Retirement System (CalPERS) service credit upon retirement. Additionally, employees hired prior to 2001 have the option to convert a portion of their sick leave to cash compensation upon retirement based on years of service. This benefit is not available to employees hired since 2001. All city employees other than executive management receive from 10 to 20 days of vacation leave each year depending on the employee’s length of service.

As of October 1, 2018, executive management employees receive management leave of between 22.5 and 27.5 days each year in lieu of receiving separate vacation and sick leave. All vacation, sick, and management leave is accrued when incurred at the current pay-rate of the employee in the government-wide, proprietary, and fiduciary fund financial statements.

Long-Term Obligations
In the government-wide financial statements, and the proprietary fund and fiduciary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, businesstype activities, proprietary fund type or fiduciary fund type statement of net position.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

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) plan (Plan) and additions to/deductions from the Plan’s 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. Reported results pertain to assets, deferred outflows of resources, liabilities, and deferred inflows of resources information within the following defined time frames:

Valuation Date (VD) – June 30, 2019
Measurement Date (MD) – June 30, 2020
Measurement Period (MP) – July 1, 2019 to June 30, 2020

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
35 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
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 California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s 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. Reported results pertain to assets, deferred outflows of resources, liabilities, and deferred inflows of resources information within the following defined time frames:

Valuation Date (VD) – January 1, 2021
Measurement Date (MD) – June 30, 2020
Measurement Period (MP) – July 1, 2019 to June 30, 2020 Functional Classifications
Expenditures of the Governmental Funds are classified by function. Functional classifications are defined as follows:
 General Government includes legislative activities that have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities which provide management or support services across more than one functional area.
 Public Safety includes those activities that involve the protection of people and property.
 Community Development includes those activities that involve the enhancing of the general quality of life.
 Parks and Recreation includes those activities that involve community park maintenance and recreational activities within the community.  Library includes those activities related to the Yorba Linda Public Library’s activities within the community
 Public Works includes those activities that involve the maintenance and improvement of City streets and roads.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
36 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Fund Balance
On June 21, 2011, the Yorba Linda City Council adopted City Council Policy No. F-3 – Fund Balance. This Policy establishes the City Council’s policy regarding the classification of fund equity. In the fund financial statements, governmental funds report the following fund balance classifications:

Nonspendable 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 includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a minute action of the City Council.

On October 4, 2016, the City Council adopted an updated City Council Policy F3 – Budget Reserves, which establishes the framework through which funds are to be committed. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently.

For the General Fund, committed fund balance equal to 50% of budgeted expenditures, excluding transfers, shall be committed to operating reserves. 40% is for the purpose of an emergency reserve and 10% is for the purpose of an economic contingency reserve, as more fully described in the Budget Reserves Policy. Use of the emergency reserve requires the City Council to declare an emergency and use of the economic contingency reserve requires approval by the City Council. In both cases, staff must present a plan for replenishment of the reserve.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
37 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (Continued)
Fund Balance (Continued)

Additionally, the Policy establishes what are termed special reserves for the General Fund, which are set aside for risk management, employee leave liabilities, and infrastructure, facilities, vehicles, and equipment replacement. The Policy requires amounts to be committed to special reserves sufficient to address anticipated requirements over a projected period of 30 years, subject to the availability of funds and prioritization of funding between the categories of special reserves by the City Council. Use of special reserves requires approval by the City Council.

Assigned includes amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager and Finance Director are authorized to assign amounts to a specific purpose pursuant to City Council Policy No. F-8 – Fund Balance. Other than funds assigned for capital projects and encumbrances, the City Council also annually approves a list of budget carryovers, which are unencumbered operating funds not related to capital projects. These funds relate to specific projects, programs, or purchases that have not yet occurred, but for which funding will still be required in the following fiscal year.

Unassigned includes the residual amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The unassigned fund balance classification is also where to report negative amounts for all governmental funds, other than the General Fund.
e. New Accounting Pronouncement
The City implemented GASB Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments.

The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists.

Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. As a result of implementing GASB No. 84, the City presented custodial funds to account for assets held by the City as an agent for others, including special deposits.

The City implemented GASB Statement No. 90, Majority Equity Interests –an amendment of GASB Statement no. 14 and No. 61. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
38 investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government entity engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those government entities and funds should measure the majority equity interest at fair value. This Statement also requires that a component unit in which a government has a 100 percent equity interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the government acquired a 100 percent equity interest in the component unit. Transactions presented in flows statements of the component unit in that circumstance should include only transactions that occurred subsequent to the acquisition.

This Statement had no material impacts to the City’s basic financial statements.

The City implemented GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - An Amendment of GASB Statements No. 14 and No. 84 and a Supersession of GASB Statement No. 32. Portions of this Statement are effective immediately, including the primary objectives to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; and (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements. This Statement had no material impacts to the City’s basic financial statements.

The City early implemented GASB Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term Annual Comprehensive Financial Report and its acronym ACFR. The new term and acronym replace instances of Comprehensive Annual Financial Report and its acronym in generally accepted accounting principles for state and local governments. This Statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for Comprehensive Annual Financial Report sounds like a profoundly objectionable racial slur. This Statement’s introduction of the new term is founded on a commitment to promoting inclusiveness. Implementation of this Statement resulted in the City renaming this document but did not have an impact on the financial statements.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
39 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) f. Future Accounting Pronouncements
GASB Statements listed below will be implemented in the future financial statements.

GASB Statement No. 87 Leases The provisions of this Statement are effective for fiscal year ending June 30,
2022.

GASB Statement No. 89 Accounting for Interest Cost Incurred Before the End of a Construction Period
The provisions of this Statement are
effective for fiscal year ending June 30,
2022.

GASB Statement No. 91 Conduit Debt Obligation The provisions of this Statement are effective for fiscal year ending June 30,
2023.

GASB Statement No. 92 Omnibus 2020 The provisions of this Statement are effective for fiscal year ending June 30,
2022.

GASB Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The provisions of this Statement are
effective for fiscal year ending June 30,
2023.

GASB Statement No. 96 Subscription-Based Information
Technology Arrangements
The provisions of this Statement are
effective for fiscal year ending June 30,
2023.

GASB Statement No. 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section
457 Deferred Compensation Plans—an amendment of
GASB Statements No. 14 and No. 84, and a
supersession of GASB Statement No. 32
The provisions of this Statement relating
to Section 457 plans are effective for
fiscal year ending June 30, 2022.

NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
a. Deficit Fund Balance / Net Position
The Miscellaneous Grants Fund had a deficit fund balance of $546,260, at June 30, 2021.

Any deficit fund balance in this fund is typically offset by grant-related revenues that are reflected as a deferred inflow of resources due to revenues not meeting the “availability” criteria for revenue recognition. Any remaining deficit in excess of these resources will be funded through future receipt of grants or developer contributions toward projects.

The SB-2 Fund and COVID-19 funds had deficit fund balances of $92,886 and $160,820 at June 30, 2021, as a result of grant-related revenues that are reflected as a deferred inflow of resources due to revenues not meeting the “availability” criteria for revenue recognition.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
40 NOTE 3. CASH AND INVESTMENTS
Cash and investments as of June 30, 2021, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Pooled Cash and Investments 78,106,350 $
Cash and Investments with Fiscal Agents 11
Statement of Fiduciary Net Position:

Pooled Cash and Investments 6,478,176
Cash and Investments with Fiscal Agents 3,240,327
Total Cash and Investments 87,824,864 $
Cash and investments as of June 30, 2021, consist of the following:

The City maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on its Balance Sheet and Statement of Net Position as pooled cash and investments. The City has adopted an investment policy that authorizes it to invest in various investments.

Deposits
The California Government Code (CGC) requires California banks to secure the City’s deposits by pledging government securities with a value of 110% of a City’s deposits and by pledging first trust deed mortgage notes having a fair value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California, as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

Petty Cash 13,070 $
Sum of Deposits with Financial Institutions: 7,183,572
Investments 80,628,222
Total 87,824,864 $

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
41 NOTE 3. CASH AND INVESTMENTS (Continued)
Investments Authorized by the CGC and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the CGC (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the CGC (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of bond indentures of the City, rather than the general provisions of the CGC or the City’s investment policy.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer United States (U.S.) Treasury Issues 5 years N/A N/A
U.S. Government Agency Securities 5 years N/A N/A
Certificates of Deposit 5 years 30% 5%
Commercial Paper 270 days 30% 5%
Medium Term Corporate Notes 5 years 30% 5%
Negotiable Certificates of Deposit 5 years 30% N/A
Money Market Funds None 20% N/A
Municipal Debt 5 years 30% 5%
Supranational Obligations 5 years 15% 5%
Asset-Backed Securities 5 years 10% 5%
Local Agency Investment Fund (LAIF) N/A N/A N/A
California Asset Management Program (CAMP) N/A N/A N/A
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee.

Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements rather than the general provisions of the CGC or the City’s investment policy.

The table below identifies the investment types that are authorized for investments held by a bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
42 NOTE 3. CASH AND INVESTMENTS (Continued)
Investments Authorized by Debt Agreements (Continued)
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
U.S. Treasury Obligations N/A N/A N/A
U.S. Agency Securities N/A N/A N/A
Banker's Acceptances 360 days N/A N/A
Commercial Paper 270 days N/A N/A
Money Market Mutual Funds N/A N/A N/A
Investment Agreements N/A N/A N/A
Local Agency Bonds N/A N/A N/A
Medium Term Notes N/A N/A N/A
Negotiable Certificate of Deposits N/A N/A N/A
Local Agency Investment Fund (LAIF) N/A N/A N/A
Authorized
Investment Type
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’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2021, the City had the following investments and original maturities:

Remaining Investment Maturities
6 months 6 months 1 to 3 3 to 5
or less to 1 year years years Total
Medium Term Corporate Notes 67,449 $ 407,133 $ 3,898,234 $ 3,753,584 $ 8,126,399 $ Negotiable Certificates of Deposit 17,049 102,911 985,359 948,796 2,054,115 Asset-Backed Securities 31,747 191,630.65 1,834,835 1,766,750 3,824,963 U.S Treasury Issues 173,158 1,045,207.74 10,007,708 9,636,356 20,862,430 U.S Government Agency Securities:

Federal Home Loan Mortgage Corp. 4,246 25,631.46 245,417 236,311 511,606 Federal National Mortgage Assn. 67,687 408,571.21 3,912,008 3,766,847 8,155,114 Municipal Bond 29,157 175,995 1,685,126 1,622,597 3,512,874 Supra-National Agency Bond / Note 13,981 84,389 808,014 778,032 1,684,416 Local Agency Investment Fund (LAIF) 28,275,092 - - - 28,275,092 California Asset Management Program (CAMP) 380,875 - - - 380,875 Held by Fiscal Agent:

Money Market Mutual Funds 3,240,338 - - - 3,240,338
$ 2,441,469 32,300,780 $ 23,376,700 $ 22,509,273 $ 80,628,222 $

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
43 NOTE 3. CASH AND INVESTMENTS (Continued)
Fair Value Measurements
The Pool categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
 Level 1: Investments reflect prices quoted in active markets;  Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and,
 Level 3: Investments reflect prices based upon unobservable sources.

Investments in money market mutual funds, LAIF, and local government investment pools are priced using amortized cost which approximates fair value, with a net asset value of $1.00 (in absolute dollar amounts) per share, and not subject to the fair value hierarchy.

The Pool has the following recurring fair value measurements as of June 30, 2021:

Active Markets Significant Other Significant
Totals for Identical Observable Inputs Unobservable
Investment Type June 30, 2021 Assets (Level 1) (Level 2) Inputs (Level 3) Debt Securities:

Medium Term Corporate Notes $ 8,126,399 $ - $ 8,126,399 -$ Negotiable Certificates of Deposit 2,054,115 - 2,054,115 - Asset-Backed Securities 3,824,963 - 3,824,963 -
US Treasury Issues 20,862,430 - 20,862,430 -
US Government Collaterlized Mortgage 511,606 511,606
US Government Agency Securities 8,155,114 - 8,155,114 - Municipal Bond 3,512,874 - 3,512,874 -
Supra-National Agency Bond / Note 1,684,416 - 1,684,416 - Total Investments at Fair Value 48,731,917 $ - $ 48,731,917 -$ Investments not subject to fair value hierarchy:

Money Market Mutual Funds 3,240,338
Local Agency Investment Fund (LAIF) 28,275,092
California Asset Management Program (CAMP) 380,875
Total Pooled and Directed Investments $ 80,628,222

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
44 NOTE 3. CASH AND INVESTMENTS (Continued)
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 (NRSRO). The City’s investment policy does not limit investments in Federal Agency Securities to ratings issued by nationally recognized statistical rating organizations. Presented below is the minimum rating required by (where applicable) the CGC, the City’s investment policy, or debt agreements, and the actual rating, by Standard and Poor’s, as of fiscal year end for each investment type. For the Medium Term Corporate Notes shown with a rating below the minimum level required of A-, a NRSRO other than Standard and Poor’s currently maintains an A or better rating on these securities. Additionally, five Asset-Backed Securities and one Medium Term Corporate Note held in the City’s portfolio were not rated by Standard and Poor’s but were rated Aaa and A2, respectively, by Moody’s, and certain short-term Certificates of Deposit with a short-term rating of A-1 from Standard and Poor’s (the highest rating) are shown in the AAA column in the table below (the equivalent longterm rating).

Rating as of Fiscal Year End
Minimum
Legal Not
Investment Type Amount Rating AAA AA +/- A +/- BBB Rated Medium Term Corporate Notes 8,126,399 $ A- - $ 925,000 $ 3,037,000 $ 3,835,000 $ 329,399 $ Negotiable Certificates of Deposit 2,054,115 A- - 465,000 1,589,115 - - Asset-backed Securities 3,824,963 A- 1,675,000 - - - 2,149,963 U.S. Treasury Issues 20,862,430 N/A - 20,862,430 - - -
U.S. Government Agency Securities:

Federal Home Loan Mortgage Corp. 511,606 N/A - 511,606 - - - Federal National Mortgage Assn. 8,155,114 N/A - 8,155,114 - - - Municipal Bond 3,512,874 N/A 680,000 2,190,000 345,000 - 297,874 Supra-National Agency Bond / Note 1,684,416 N/A 1,684,416 - - - - Local Agency Investment Funds (LAIF) 28,275,092 N/A - - - - 28,275,092 California Asset Management Program (CAMP) 380,875 N/A - - - - 380,875 Held by Fiscal Agent:

Money Market Mutual Funds 3,240,338 N/A - - - - 3,240,338 Totals 80,628,222 $ 4,039,416 $ 33,109,150 $ 4,971,115 $ 3,835,000 $ 34,673,541 $ Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. There were no investments in any one issuer (other than U.S.

Treasury and agency securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
45 NOTE 3. CASH AND INVESTMENTS (Continued)
Custodial Credit Risk
The 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 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 to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

As of June 30, 2021, none of the City’s deposits or investments were exposed to custodial credit risk.

External Investment Pools
Local Agency 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). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

The total amount invested by all public agencies in LAIF as of June 30, 2021, was $28,275,092 LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2021, had a balance of $193,321,015,759. Of that amount 3.4% was invested in medium-term and short-term structured notes and asset-backed securities. The average maturity of PMIA investments was 191 days as of June 30, 2021. LAIF is unrated as to credit quality.

California Asset Management Program – The City is a voluntary participant in the California Asset Management Program (CAMP), a California Joint Powers Authority (JPA) established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under CGC Section 53601(p). CAMP is directed by a Board of Trustees, which is made up of experienced finance directors and treasurers of California public agencies that are members of the JPA. CAMP determines fair value on its investment portfolio based on amortized cost. The City measures the value of its CAMP investment at the fair value amount provided by CAMP. At June 30, 2021, CAMP had a total portfolio of approximately $5.5 billion of which all was invested in non-derivative financial products. The average maturity of CAMP investments was 51 days as of June 30, 2021.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
46 NOTE 4. CAPITAL ASSETS
The City elected to use the Modified Approach for infrastructure reporting for its Pavement Subsystem. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the Modified Approach is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems are depreciated.

Capital asset activity for the fiscal year ended June 30, 2021, was as follows:

Balance Balance
Governmental Activities: July 1, 2020 Increases Decreases Transfers June 30, 2021 Capital Assets, Not Being Depreciated:

Land 34,750,068 $ - $ - $ - $ 34,750,068 $
Street pavement infrastructure 200,603,744 - - - 200,603,744 Construction In Progress 45,197,661 2,098,345 - (43,179,908) 4,116,098 Total Capital Assets
Not Being Depreciated 280,551,473 2,098,345 - (43,179,908) 239,469,910 Capital Assets, Being Depreciated:

Buildings and improvements 69,864,687 15,672,189 (156,289) 38,982,750 124,363,337 Machinery and equipment 14,021,131 568,638 - - 14,589,769 Motor vehicles 1,545,398 98,418 (26,512) - 1,617,304
Other Infrastructure 142,627,550 5,620,408 - 4,197,158 152,445,116 Total Capital Assets
Being Depreciated 228,058,766 21,959,653 (182,801) 43,179,908 293,015,527 Less Accumulated Depreciation:

Buildings and improvements (30,253,426) (1,722,216) 156,289 (31,819,353) Machinery and equipment (11,108,545) (787,074) - - (11,895,619) Motor vehicles (1,201,123) (109,544) 26,512 - (1,284,155) Other Infrastructure (38,517,602) (2,020,114) - - (40,537,716) Total Accumulated Depreciation (81,080,696) (4,638,948) 182,801 - (85,536,844) Total Capital Assets
Being Depreciated, Net 146,978,070 17,320,705 - 43,179,908 207,478,683 Capital Assets, Net 427,529,543 $ 19,419,050 $ - $ - $ 446,948,593 $ Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Activities:

General government 929,955 $
Public safety 55,627
Community development 53,905
Parks and recreation 1,302,805
Public works 2,296,656
Total 4,638,948 $

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
47 NOTE 4. CAPITAL ASSETS (Continued)
Balance Balance
July 1, 2020 Increases Decreases Transfers June 30, 2021 Business-Type Activities
Capital Assets, Not Being Depreciated:

Land $ 12,721,948 9,456$ -$ -$ $ 12,731,404
Total Capital Assets
Not Being Depreciated 12,721,948 9,456 - - 12,731,404
Capital Assets, Being Depreciated:

Structures and improvements 21,554,061 7,585 - - 21,561,646 Machinery and equipment 2,794,687 462,153 - - 3,256,840 Total Capital Assets
Being Depreciated 24,348,748 469,738 - - 24,818,486
Less Accumulated Depreciation:

Structures and improvements (11,343,246) (621,155) - - (11,964,401) Machinery and equipment (2,404,213) (141,493) - - (2,545,706) Total Accumulated Depreciation (13,747,459) (762,648) - - (14,510,107) Total Capital Assets
Being Depreciated, Net 10,601,289 (292,910) - - 10,308,379 Business-Type Activities
Capital Assets, Net $ 23,323,237 $ (283,454) -$ -$ $ 23,039,783 Depreciation expense was charged to the following function in the Statement of Revenues, Expenses and Changes in Fund Net Position:

Business-Type Activities:

Golf Course 762,648 $

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
48 NOTE 5. LONG-TERM RECEIVABLES
Loans Receivable (Net)
Contracts and notes receivable as of June 30, 2021, totaled $46,648,407 and were recorded as follows in the Affordable Housing Fund:

Owner Participation Agreements
Yorba Linda Housing Partners, L.P.

In May 2006, the former Redevelopment Agency (the Agency) entered into an OPA with Yorba Linda Housing Partners, L.P. for the purchase and rehabilitation of a multi-family apartment complex now known as “Villa Plumosa Apartments.” The Project consists of substantially rehabilitating and developing the Property in order to create a 76-unit multi-family affordable rental housing comprised of a new community center, 52 two-bedroom units and 24 three-bedroom units subject to affordable housing restrictions. The Agency provided the developer with financial assistance by providing: (1) a loan of $7,400,000 to assist in financing the acquisition of the property, and (2) a loan not to exceed $5,376,000 to assist in financing the development of the project. In June 2008, the developer was granted an additional $200,000 in loan proceeds from the Agency to comply with additional requirements placed upon the project by the Agency relating to ADA accessibility requirements.

This brought the total maximum loan to $12,976,000. The loan bears simple interest at 3% per annum and will be repaid over the 55-year covenant period. The Agreement also provides that payments toward principal and interest shall not commence until the operation of the project has generated residual receipts calculated annually. The outstanding balance at June 30, 2021, was $17,683,704.

Affordable Housing Agreements
Evergreen Villas, L.P.

In December 2009, the former Redevelopment Agency entered into an Affordable Housing Agreement with Evergreen Villas, LP for the purchase and rehabilitation of a multi-family condominium complex commonly known as “Evergreen Condominiums”. The project consists of rehabilitating all 26 condominium units and offering them at rents affordable to and to be occupied by very low-income occupants. The Agency assisted in the development of the project by providing financial assistance in the form of a subordinate financing loan in an amount not to exceed $3,254,200. This amount consists of the agreed upon value of the property of $3,169,500 plus an amount not to exceed $84,700 cash for certain property acquisition and development expenses associated with the project. The loan bears no interest and will be repaid over the 55-year covenant period from the close of escrow.

In June 2010, the Agency provided further financial assistance in the form of a subordinate financing loan in the amount of $196,140 for the developer’s acquisition and rehabilitation of an additional unit. In April 2011, the Agency expanded the program citywide, committing up to an additional $9.0 million of housing funds for the acquisition and rehabilitations in various condominium complexes citywide that were experiencing high rates of foreclosure.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
49 NOTE 5. LONG-TERM RECEIVABLES (Continued)
Affordable Housing Agreements (Continued)
Evergreen Villas, L.P. (Continued)
Additional amounts of $744,142, $494,516, $1,329,009, and $331,569 were loaned during fiscal years 2013-2014, 2014-2015, 2016-2017, and 2017-2018, respectively.

On December 18, 2018, the City Council authorized the reallocation of up to $2,382,050 of the funds from this project to the development of a new 48-unit senior apartment complex on Altrudy Lane as discussed in more detail below under Orange Housing Development Corporation. During fiscal year 2019-2020, a total of $1,215,813 was reallocated between the two projects. The total outstanding balance at June 30, 2021, for Evergreen Villas was $11,028,186.

National Community Renaissance of California, L.P.

In March 2011, the former Redevelopment Agency entered into an Affordable Housing Agreement with National Community Renaissance of California, LP for the construction of 69 apartment units for extremely low, very low, and low income residents. In June 2013, a second Affordable Housing Agreement was entered into to provide for an additional 54 units in a second phase of development. An Agency acquisition loan was made in an amount not to exceed $5,075,250, secured by a promissory note that the developer was not obligated to pay until it has received its tax credits. At that time the entire loan amount was rolled into the balance of a development loan in an amount not to exceed $3,257,227 towards the construction costs. An additional amount of $480,271 was added to the loan in 2013. The developer will repay the loan over a period of 55 years from the date a certificate of occupancy is issued, with simple interest accruing at a maximum rate of 3% per annum and principal payments to be made from residual receipts generated by the project. In March 2017, the City entered into a second amendment to the agreement to add an additional $2,000,000 to the loan balance, which was subject to funds availability when the City had sufficient housing funds on hand to make the loan. In September 2018, sufficient housing funds were available to the City and the additional loan was disbursed. The outstanding balance at June 30, 2021, was $12,366,579.

Orange Housing Development Corporation
In December 2018, the City entered into an Affordable Housing and Property Disposition Agreement with Orange Housing Development Corporation and C&C Development for the construction of a 48-unit senior apartment complex to be located at the corner of Lakeview Avenue and Altrudy Lane. The Project consists of affordable units for low, very low, and extremely low-income senior citizens, with a percentage of units set aside for senior veterans. Under the terms of the Agreement, the City conveyed the property on which the project is being built to the developer, the value of which was evidenced by a promissory note reflecting the appraised value of $4,320,000.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
50 NOTE 5. LONG-TERM RECEIVABLES (Continued)
Affordable Housing Agreements (Continued)
Orange Housing Development Corporation (Continued)
Additionally, the developer, which is the same parent entity as for the City’s Agreement with Evergreen Villas LP, was authorized to reallocate up to $2,382,050 of the funds from that project to this project through the resale of various condominium units. During fiscal year 2019-2020, a total of $1,215,813 was reallocated between the two projects. The total of the loan for the value of the property plus the reallocated amount(s) bears simple interest at 0.5% per annum and will be repaid over the 55-year covenant period.

The Agreement also provides that payments toward principal and interest shall not commence until the operation of the project has generated residual receipts calculated annually, anticipated to be in 2028. The outstanding balance at June 30, 2021, was $5,569,938.

On January 21, 2020, an additional Affordable Housing and Property Disposition Agreement was entered into for a second phase of the project that will include an additional 40 senior apartment units. Under this agreement, property immediately to the east of the original property on Altrudy Lane was purchased by the City for $2.6 million from a private party. The City will hold title to the property until a General Plan Housing Element update is completed that will include the subject property as an affordable housing site. A successful vote of the citizens of the City required under local Measure B to change the zoning on the property from single family residential to a more intense zoning that will allow the second phase of the project to move forward is also required to trigger the transfer of the property to the Developer. As of June 30, 2021, this process has not yet been completed and the property is held by the City in its Affordable Housing Fund as land held for resale.

Advances to Successor Agency of Former RDA
The advances to the Successor Agency of the former Redevelopment Agency (RDA) consist of $6,035,572 for loans made to the former RDA to assist in various Redevelopment projects and a $3,815,853 loan to make the SERAF payment. On January 3, 2017, the Yorba Linda City Council approved a settlement agreement with the State Department of Finance that, among other terms, memorialized a repayment schedule for the outstanding advances due to the City from the Successor Agency. Repayment of these advances had been delayed due to ongoing litigation between the City and the State. As a result of the settlement agreement, the Successor Agency is now allowed to request funds from the County Auditor/Controller via the Recognized Obligation Payment Schedule (ROPS) process to repay the advances from the City. As of June 30, 2021, the SERAF loan has been repaid in full.

Payments on the non-SERAF loans are ongoing, with $2,224,171 paid during the year ended June 30, 2021.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
51 NOTE 5. LONG-TERM RECEIVABLES (Continued)
Advances to Successor Agency of Former RDA (Continued)
Twenty percent of each payment is required to be transferred to the Affordable Housing Fund under the terms of the settlement agreement and the redevelopment dissolution law, with $ 444,834 transferred during the year ended June 30, 2021. It is anticipated that the remaining balance on the projects loan of $598,080 will be paid in full by June 30, 2022, as shown in the table below:

Fiscal Year Payment
Ending June 30, Amount
2022 $ 598,080
$ 598,080
NOTE 6. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2021, was as follows:
a. Due To / From Other Funds
Paying Funds Amount Receiving Funds Amount
Major Governmental Fund Major Governmental Fund
General Fund $ 931,053 Miscellaneous Grants Fund $ 656,260 Nonmajor Governmental Funds
Traffic Safety Fund 3,169
CDBG Grant Fund 63,678
SB-2 Fund 47,416
COVID Fund 160,530
$ 931,053 $ 931,053
Interfund balances are the result of 1) short term borrowing to cover negative cash balances and operating shortages at June 30, 2021, or 2) the time lag between the dates that reimbursable expenditures occur and the dates the related revenues are received. All of these balances are expected to be reimbursed within the subsequent year.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
52 NOTE 6. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued) b. Advances To / From Other Funds
On February 18, 2020, the City Council authorized the cancellation of all advances due to the General Fund from the Black Gold Golf Course Fund as well as the related accrued interest payable. These advances were made when the golf course was initially built to cover construction cost overruns and subsequently to pay off the remaining principal balance of the Golf Course’s 2003 Revenue Bonds. Following a detailed long-term financial analysis of the expected cash flows for the golf course, it was determined that it was unlikely that sufficient cash would be generated from the golf course operations to repay the advances within a reasonable period of time. At that time, a new advance of $2,300,000 was also made from the Master Plan of Drainage Fund to the Black Gold Golf Course Fund to eliminate the fund’s negative cash position. The advance will be repaid over a period of ten years. Sufficient resources are expected to be on hand generated from golf course operations to make regular payments on this advance.

June 30, 2020 Additions Deletions June 30, 2021
Advances from Master Plan of Drainage Fund 2,300,000 $ - - 2,300,000 $ Total Advances 2,300,000 $ - $ - $ 2,300,000 $

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
53 NOTE 6. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued) c. Interfund Transfers
Receiving Funds Amount Paying Funds Amount
Major Governmental Funds Major Governmental Funds
General Fund $          1,054,759 General Fund $           2,125,443 Landscape Maintenance Assessment District Fund 1,594,785      Landscape Maintenance Assessment District Fund    197,588 Capital Improvement Fund   14,960,963 Public Library Fund     11,608,560 Affordable Housing Fund          Miscellaneous Grants Fund  444,834    330,985 Nonmajor Governmental Funds Nonmajor Governmental Funds Lighting and Signal Project Fund          PEG Fund 197,588    383,238 Gas Tax Fund    794,319
Measure M2 Fund    633,230
Road Maintenance and Rehabilitation Fund    791,563
Traffic Safety Fund      37,324
Citizen Option Public Safety Fund    163,357
COVID‐19 Fund    711,777
Traffic Signal Improvements Fund    475,545
$ 18,252,929 $ 18,252,929
The transfer to the Capital Improvements Fund in the amount of $14,960,963 consisted primarily of:

1. The transfer from the General Fund of $85,823, which related to funding for reimbursing the Capital Improvements Fund for capital expenditures for miscellaneous projects.

2. The transfer from the Public Library Fund of $11,608,560 is related to funding for the City’s Library and Cultural Arts Center project, which was completed in FY 2020/21.

3. The transfers from the Miscellaneous Grants Fund of $220,985 and other nonmajor governmental funds of $3,045,595 were primarily for reimbursing the Capital Improvements Fund for capital expenditures.

The transfer to the Landscape Maintenance Assessment District Fund of $1,594,785 was from the General Fund to cover the general benefit costs associated with landscape and lighting maintenance as well as certain capital projects for the conversion of turf medians to new drought-tolerant landscaping.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
54 NOTE 6. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (Continued) c. Interfund Transfers (Continued)
The transfers to the General Fund of $1,054,759 were primarily the result of transfers from the COVID-19 Grant Fund of $711,777 to reimburse the General Fund for eligible costs related to responding to the pandemic. The remaining $342,982 of transfers from other nonmajor governmental funds were to reimburse the General Fund for public safety services performed by the Orange County Sheriff’s Department under the City’s Police Services contract, engineering and administrative services in support of the City’s street maintenance program as authorized under California Streets and Highway Code Section 2107.5, capital expenses and consulting services related to the City’s Government Access Channel, and grant-funded staff time and consultant costs related to preparation of the City’s General Plan Housing Element and other planning studies.

The transfers to the Affordable Housing Fund consisted of $444,834 from the General Fund to allocate 20% of a payment received from the Successor Agency on the outstanding loans to the Successor Agency as further discussed in note 5 to the basic financial statements.

The transfer to the Lighting and Signal Improvement Fund of $197,588 from the Landscape Maintenance Assessment District (LMAD) Fund is for certain revenues collected from the lighting and traffic signal zones which are segregated from operating funds for future lighting and traffic signal capital improvements.

NOTE 7. LONG-TERM LIABILITIES
a. Long-Term Liabilities – Governmental Activities
The following is a summary of changes in long-term liabilities of the City’s governmental activities for the fiscal year ended June 30, 2021:

Balance Balance Due Within
July 1,2020 Additions Deletions June 30, 2021 One Year
Lease Revenue Bonds 14,155,000 $ - $ 515,000 $ 13,640,000 $ $ 540,000 Private Placement Lease 7,611,000 - - 7,611,000 -
Unamortized Bond Premium 128,523 1,148,111 64,262 1,212,372 192,785 Claims and Judgements
Claims Liability 155,222 594,532 474,418 275,336 275,336 Workers Compensation 784,222 54,761 146,906 692,077 87,918 Compensated Absences 1,098,760 1,071,523 738,391 1,431,892 1, 134,138 Net Pension Liability (Note 9) 22,028,168 568,188 - 22,596,356 - OPEB Obligation (Note 10) 16,219,034 - 1,593,132 14,625,902 - Total 63,199,517 $ 2,417,527 $ 3,532,109 $ 62,084,935 $ 2, $ 230,177

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
55 NOTE 7. LONG-TERM LIABILITIES (Continued)
a. Long-Term Liabilities – Governmental Activities (Continued) Lease Financings
2018 Yorba Linda Public Financing Authority Lease Revenue Bonds – Series A In December 2018, the Yorba Linda Municipal Financing Authority issued $14,645,000 of lease revenue bonds to fund a portion of the construction costs of the new Yorba Linda Public Library facility. The bonds are payable from the lease payment revenues received by the Authority from the City as pledged under a trust indenture. The lease payments are a budgetary obligation of the Public Library Special Revenue Fund.

However, the City has covenanted to appropriate sufficient funds to make the annual lease payments, which would include appropriations from the City’s General Fund in the event that the Library Special Revenue Fund were to have insufficient funds on hand to make the payments. The lease payments and corresponding bond debt service payments began on May 1, 2019. The bonds are current interest serial bonds maturing between May 1, 2020, and May 1, 2038, at interest rates ranging from 3.25% to 5.00% and with annual principal payments ranging from $0 to $1,095,000. The interest payments are due semi-annually on May 1 and November 1. The outstanding balance as of June 30, 2021, was $13,640,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest, are as follows:

Fiscal Year Ending
June 30, Principal Interest
2022 540,000 $ $ 598,637
2023 570,000 571,638
2024 600,000 543,137
2025 630,000 513,138
2026 660,000 481,638
2027-2031 3,815,000 1, 880,438
2032-2036 4,680,000 991,375
2037-2038 2,145,000 85,800
Total 13,640,000 $ 5, $ 665,801

2020 Private Placement Lease Financing with Sterling National Bank In June 2021, the Yorba Linda Municipal Financing Authority issued $7,611,000 through a private placement lease financing with Sterling National Bank to fund a portion of the construction costs of the new Cultural Arts Center facility. The private placement financing is payable from the lease payment revenues received by the Authority from the City as pledged under a trust indenture. The lease payments and corresponding debt service payments will begin on February 1, 2021. Principal payments for the financing are payable each August 1st beginning in 2023, with final maturity on August 1, 2030. The interest rate for the financing is 2.36%, with principal payments ranging from $875,540 to $1,030,830.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
56 NOTE 7. LONG-TERM LIABILITIES (Continued)
a. Long-Term Liabilities – Governmental Activities (Continued) The interest payments are due semi-annually on February 1 and August 1. The outstanding balance as of June 30, 2021, was $7,611,000.

The annual requirements to amortize the outstanding indebtedness as of June 30, 2021, including interest, are as follows:

Fiscal Year Ending
June 30, Principal Interest
2022 - $ 179,620 $
2023 - 179,620
2024 875,540 169,288
2025 896,200 148,382
2026 917,350 126,982
2027-2031 4,921,910 295,811
Total 7,611,000 $ 1,099,703 $
Claims and Judgments
The City of Yorba Linda is a member of the California Insurance Pool Authority (CIPA). CIPA is a Joint Powers Authority with 13-member cities in Los Angeles County and Orange County, California, which was established in 1978 to pool resources, share risks, purchase excess insurance, and share costs for professional risk management and claims administration. The Governing Board consists of one member from each participating city and is responsible for the selection of management and for the budgeting and financial management of the Authority.

The rights of the City of Yorba Linda are to receive assistance from the CIPA in establishing and maintaining a risk management program compatible with the policies and programs of the Authority and to appeal decisions of the Claims Committee to the Executive Committee or the Board, subject to such restrictions as the Board may adopt by resolution or Bylaws.

The City initiated self-insurance programs for general liability and workers’ compensation on July 1, 1985, and July 1, 1989, respectively. Outside insurance coverage is purchased through CIPA for individual claims in excess of the City’s selfinsurance retention limits. Larger claims are processed by an outside insurance service that administers the programs, while smaller claims are processed in-house by the City’s Risk Manager. For general liability claims, CIPA provides 1) a risk-sharing pool for claims in excess of the City’s self-insured retention level of $250,000 up to $3,000,000 and 2) a non-risk-sharing insurance-purchasing pool for claims in excess of $3,000,000 up to $38,000,000 per occurrence.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
57 NOTE 7. LONG-TERM LIABILITIES (Continued)
a. Long-Term Liabilities – Governmental Activities (Continued) Claims and Judgments (Continued)
For workers compensation claims, the City has obtained excess insurance coverage from an outside commercial insurance company through CIPA’s non-risk-sharing insurance purchasing program. The policy provides coverage for claims in excess of the City’s $500,000 self-insured retention level up to the California statutory limits for workers compensation. If CIPA’s Board of Directors determines that the funds on hand are insufficient to pay losses, a special assessment may be imposed on all participating members.

The City is also obligated to pay its proportional share of the workers compensation liability for City of Brea Police Department employees who were injured on the job during a portion of the time that the City of Brea provided police services for the City, which ended on July 7, 2012. The degree of the City’s obligation for these liabilities changed several times, as further described in the former agreements with the City of Brea to provide police services in Yorba Linda. Annually, the City of Brea’s risk manager provides the City with an updated actuarial analysis of the City’s share of Brea’s workers compensation liability, which the City reports as a liability. The City of Brea invoices the City monthly for Yorba Linda’s share of actual claims payments made. The City Council has established and fully funded a Special Reserves account that offsets this liability. Funds are transferred to the General Fund from Special Reserves to make the monthly payments to the City of Brea.

The City accounts for material claims and judgments when it is probable that a claim liability has been incurred at fiscal year-end and the amount of the loss can be reasonably estimated. The City records the estimated loss, including a provision for incurred but not reported claims, net of any insurance coverage under its self-insurance program.

At June 30, 2021, various claims have been received by the City that the City has denied, but no action has yet been filed. Litigation is still pending on cases that the City believes are adequately covered as described in the following paragraphs. Small dollar claims and judgments are recorded as expenditures when paid.

A liability as of June 30, 2021, of $967,413 is reported in the Statement of Net Position for general liability and workers’ compensation claims and judgments.

Changes in the claims and judgements liability balance for the fiscal years ended June 30, 2021, and 2020, including a provision for incurred but not reported claims were as follows:

Fiscal Year
Ending June 30,
Claims Payable
Beginning
Claims and
Changes in
Estimates
Claims
Payments
Claims Payable
Ending
2020 $ 1,004,723 $ 508,764 $ 574,043 $ 939,444
2021 939,444 649,292 621,323 967,413

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
58 NOTE 7. LONG-TERM LIABILITIES (Continued)
a. Long-Term Liabilities – Governmental Activities (Continued) Claims and Judgments (Continued)
There have been significant changes to insurance coverage as compared to last year due to the following reasons:
 Property Schedule: addition of $43M+ new Library/Arts Center.  Vehicle Schedule: addition of Black Gold’s $785,000 golf cart fleet, including GPS devices.
 6M+ Adventure Playground project will be added to the FY2022-23 and may pursue an Earthquake policy.
 Workers Compensation: City staff and salaries have grown annually which was projected to be $13M for FY2021/22; thereby increasing the Workers Compensation contribution.  Employer Practices Liability: Millan claim exceeded $250k self-insured retention and dipped into the
 California Insurance Pool Authority’s (CIPA) $2M insurance layer by approximately $1.2M. However, the City prevailed in Superior Court on all counts and Millan was awarded $0 in economic damages.
 CIPA increased its confidence level from 75% to 80%.
 Significant overall increases in property liability (15% - 25%), commercial excess liability (18% - 25%), and cyber liability (20%-30%) projections in FY 2012-22.

The City has not experienced settlements in excess of insurance coverage during the past three years.

Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 to the basic financial statements. This liability will be paid in the future from the General Fund or the Public Library Fund. While small amounts of personnel costs are allocated to other funds, the General Fund covers the compensated absences obligations of these other funds. The City Council has established and fully funded a Special Reserves account that offsets the General Fund’s share of this liability. The Public Library Fund maintains operating reserves sufficient to fund its share of the liability. The outstanding balance at June 30, 2021, was $1,431,892.

NOTE 8. CONDUIT DEBT
During fiscal year 2000-2001, the Agency issued, on behalf of National CORE (Southern California Housing Corporation), the Yorba Linda Redevelopment Agency Multi-Family Housing Revenue Bonds 2000, Series A, in the principal amount of $2,754,321. These bonds are not reflected in the City’s long-term liabilities because they are special obligations payable solely from and secured by specific revenue sources described in the resolution and official statement of the issue. Neither the faith and credit nor the taxing power of the City, the former Redevelopment Agency, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. The balance as of June 30, 2021, is $1,462,035.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
59 NOTE 9. CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) a. General Information about the Pension Plan
Plan Description
All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan (Plan), an agent multiple employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS).

Benefit provisions under the Plan are established by State statute and City resolution.

Separate financial statements for the Plan may be obtained by writing to CalPERS at Lincoln Plaza North 400 Q Street, Sacramento, California, 95814 or by visiting the CalPERS website at www.calpers.ca.gov.

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 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-63 52-67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500% Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 22.172% 22.172%
Miscellaneous

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
60 NOTE 9. CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued)
a. General Information about the Pension Plan (Continued) Employees Covered
At June 30, 2020 (measurement date), the following employees were covered by the benefit terms for the Plan:

Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 143 Inactive employees entitled to but not yet receiving benefits 57 Former employees currently working for another CalPERS agency 60 Active employees 118
Total 378
Contributions
Section 20814 (c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employees be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis of June 30 by CalPERS. 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.

Employee contributions are based on the employee’s annual covered salary. For the fiscal year ended June 30, 2021, the employee contribution rate was 7.00% for classic members hired before January 1, 2013, or who were hired after January 1, 2013 and had membership with a previous reciprocal retirement system; and 6.75% for PEPRA members hired after January 1, 2013. The City was required to contribute $3,625,393 as employer contributions for the fiscal year ended June 30, 2021. b. CalPERS Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
61 NOTE 9. CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued)
b. CalPERS Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liability in the June 30, 2020, actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.625%
Payroll Growth 2.875%
Projected Salary Increase 0.40% - 8.50% (1)
Investment Rate of Return 7.25% (2)
Mortality Derived using CalPERS' Membership Data for all Funds (1) Depending on age, service and type of employment.
(2) Net of pension plan investment and administrative expenses, including inflation.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 valuation were based on the results of the 2017 CalPERS Experience Study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate
The discount rate used to measure the total pension liability as of June 30, 2020 was

7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on Plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Plan investment expense and inflation) are developed for each major asset class.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
62 NOTE 9. CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued)
b. CalPERS Net Pension Liability (Continued)
Discount Rate (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the longterm (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class 1
Assumed
Asset
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0 1.00 2.62
Inflation Sensitive - 0.77 1.81
Private Equity 8.0 6.30 7.23
Real Estate 13.0 3.75 4.93
Liquidity 1.0 - (0.92) 1
In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
63 NOTE 9. CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued)
c. Changes in the CalPERS Net Pension Liability
The changes in the Net Pension Liability for the Plan are as follows:

Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Position
Liability/(Asset)
(c) = (a) - (b)
Balance, June 30, 2019 (MD) $ 77,287,722 $ 55,259,554 $ 22,028,168 Changes in Recognized for the
Measurement Period:

Service Cost 1,696,577 - 1,696,577
Interest on the Total Pension Liability 5,438,271 - 5,438,271 Changes in Benefit Terms - - -
Differences between Expected
and Actual Experience (252,047) - (252,047)
Changes of Assumptions - - -
Contribution from the Employer - 2,329,240 (2,329,240)
Contributions from the Employees - 1,285,901 (1,285,901) Net Investment Income ² - 2,777,374 (2,777,374)
Benefit Payments, including Refunds (3,648,478) (3,648,478) - of Employee Contributions
Administrative Expense - (77,902) 77,902
Other Miscellaneous Income/(Expense) - - -
Net Changes during 2019-20 3,234,323 2,666,135 568,188
Balance, June 30, 2020 (MD) ¹ $ 80,522,045 $ 57,925,689 $ 22,596,356 ² Net of administrative expenses.

Increase (Decrease)
¹ The fiduciary net position includes receivables for employees service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. This may differ from the plan assets reported in the funding actuarial valuation report.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentagepoint lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:

Discount
Rate -1%
(6.15%)
Current Discount
Rate (7.15%)
Discount
Rate +1%
(8.15%)
Plan's Net Pension
Liability/(Asset) 33,364,694 $ 22,596,356 $ 13,732,825 $

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
64 NOTE 9. CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued)
c. Changes in the CalPERS Net Pension Liability (Continued) Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
d. CalPERS Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2021, the City recognized pension expense of $2,822,6231.

At measurement date of June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ - 3,625,393 $ Changes of assumption (28,495) -
Differences between expected and actual experience (182,034) 313,548 Net differences between projected and actual earnings
on pension plan investments - 450,076
Total $ (210,529) 4,389,017 $
The amount of $3,625,393 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 fiscal year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year
Ended June 30,
Deferred Outflows
(Inflows) of
Resources
2022 (81,713) $
2023 158,463
2024 242,564
2025 233,781

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
65 NOTE 10. OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS
a. General Information about the Other Postemployment Benefits Plan Plan Description
The City provides other postemployment benefits (OPEB) through the Public Employees’ Medical and Hospital Care Act (PEMHCA), a single-employer defined benefit healthcare plan administered by the California Public Employees’ Retirement System (CalPERS). Separate financial statements for the PEMHCA may be obtained by writing to CalPERS at Lincoln Plaza North 400 Q Street, Sacramento, California, 95814 or by visiting the CalPERS website at www.calpers.ca.gov.

Benefits Provided
Eligible active employees are offered a choice of medical (including prescription drug coverage) plans through the CalPERS Health Program under the Public Employees’ Medical and Hospital Care Act (PEMHCA). The City offers the same medical plans to eligible retirees except that once a retiree is eligible for Medicare, the retiree must join a Medicare HMO or Supplement Plan with Medicare being the primary payer. In addition, the City provides dental and vision coverage to eligible retirees. Retirees may elect coverage for their spouse and eligible dependents.

Contribution
Currently, the City contributes the minimum amount required by PEMHCA toward health insurance premiums for all retirees. For retirees hired prior to April 1, 2017, an additional contribution up to the average two-party premium of HMO Plans offered by CalPERS is provided through a health reimbursement account. Retirees hired on or after April 1, 2017, only receive the minimum contribution required by PEMHCA. In addition, retirees hired prior to April 1, 2017, are eligible to participate in the City’s dental and vision insurance plans at no cost. Retirees hired on or after April 1, 2017, are not eligible for dental or vision insurance coverage in retirement. These benefits are provided per contract between the City and the employee associations. The City was required to contribute $599,730 and the total actual contribution was $599,730 for fiscal year ended June 30, 2021.

Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the City, City Council and/or the employee associations. The City made an annual contribution to an OPEB trust with CalPERS beginning in fiscal year 2017- 2018. The City Council has established a formal funding policy relative to these contributions and intends to make them on a periodic, discretionary basis as funds permit in order to reduce the City’s unfunded OPEB liability.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
66 NOTE 10. OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (Continued) a. General Information about the Other Postemployment Benefits Plan (Continued) Employees Covered
At June 30, 2020 (measurement date), the following employees were covered by the benefit term:

Inactive employees or beneficiaries currently receiving benefits 68 Inactive employees entitled to but not yet receiving benefits 17 Active employees 124
Total 209
b. Net OPEB Liability
The net OPEB liability of the Plan was measured as of June 30, 2020, using an interim actuarial valuation as of June 30, 2021, rolled back to June 30, 2020, in accordance with the parameters of GASB Statement No. 75.

Actuarial Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in the actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

The net OPEB liability in the June 30, 2020 (measurement date) actuarial valuation was determined using the following actuarial assumptions:

Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.00%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase 0.40% - 8.50% (1)
Asset Return 7.00% (2)
Mortality Derived using CalPERS' Membership Data for all Funds (1) Depending on age, service and type of employment.
(2) Assuming the City invests in California Employers' Retiree Benefit Trust (CERBT) under its investment allocation strategy.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
67 NOTE 10. OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (Continued) b. Net OPEB Liability (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability as of January 1, 2020, was

7.00%. The discount rate is a blended rate between the rate of return at 7.00% and

3.50%, the resulting rate using the average of three 20-year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO index and Fidelity GO AA 20 Year Bond Index
The long-term expected rate of return on OPEB plan investments 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. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30, 2020, are summarized in the following table:

Asset Class Target Allocation
Long-term Expected Real
Rate of Return
Global Equity 59.0 % 5.50%
Global Fixed Income 25.0 2.35
Inflation Assets 5.0 1.50
Commodities 3.0 1.75
REITs 8.0 3.65

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
68 NOTE 10. OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (Continued) c. Change in the Net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Net OPEB
Liability
Total OPEB Liability Balance, June 30, 2019 (MD) 16,995,487 $ Service Cost 514,178
Interest 1,081,753
Differences between Expected
and Actual Experience (738,379)
Changes of Assumptions (1,509,066)
Benefit Payments, including Refunds
of Employee Contributions (688,476)
Net Changes during 2018-19 (1,339,990)
Total OPEB Liability Balance, June 30, 2020 (MD) 15,655,497 Contribution from the Employer 919,194
Net Investment Income 22,861
Benefit Payments, including Refunds
of Employee Contributions (688,476)
Admin and Other Expense (437)
Net Changes during 2019-20 253,142
Plan Fiduciary Net Position - Beginning 776,453
Plan Fiduciary Net Position - Ending 1,029,595
Net OPEB Liability Balance, June 30, 2020 (MD) 14,625,902 $ Plan Fiduciary Net Position

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
69 NOTE 10. OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (Continued) c. Change 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 as of the measurement date, calculated using the discount rate of 7.00%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:

Discount Rate -
1% (6.00% )
Current Discount
Rate (7.00% )
Discount Rate
+1% (8.00% )
Net OPEB Liability 17,293,868 $ 14,625,902 $ $ 13,161,477 Sensitivity of the Net OPEB Liability to changes in healthcare cost trend rates The following presents the net OPEB liability as of the measurement date, as well as what net OPEB liability would be if it were calculated using a trend rate that is one percentage point lower or one percentage point higher than the current healthcare trend rate:
1% Decrease
Current
Healthcare Cost
Trend Rates
1% Increase
(5.00%
decreasing to

4.00% )
(6.00%
decreasing to

5.00% )
(7.00%
decreasing to

6.00% )
Net OPEB Liability $ 14,625,902 12,827,246 $ 17, $ 768,207 d. CalPERS OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $2,159,153. At measurement date of June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
70 NOTE 10. OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (Continued) d. CalPERS OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ - 599,730 $ Differences between expected and actual experience (3,628,651) - in measurement of the Total OPEB Liability - -
Changes of assumption (5,467,064) -
Differences between projected and actual earnings 0 29,046 on OPEB plan investments -
Total $ (9,095,715) 628,776 $
The amount of $599,730 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in future OPEB expense as follows:

Fiscal Year
Ended June 30,
Deferred Outflows
(Inflows) of
Resources
2022 (2,757,503) $
2023 (1,159,947)
2024 (1,161,251)
2025 (1,158,256)
2026 (1,166,138)
Thereafter (1,665,574)

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
71 NOTE 11. JOINT VENTURES
Orange County Fire Authority
In January 1995, the City entered into a joint powers agreement with the Cities of Buena Park, Cypress, Dana Point, Irvine, Laguna Hills, Laguna Niguel, Lake Forest, La Palma, Los Alamitos, Mission Viejo, Placentia, San Clemente, San Juan Capistrano, Seal Beach, Stanton, Tustin, Villa Park, and the County of Orange to create the Orange County Fire Authority (Authority). The purpose of the 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 effective date of formation was March 1, 1995. The Authority’s governing board consists of one representative from each City and two from the County. The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated areas of the County and on behalf of all member Cities except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia and Seal Beach. The County pays all structural fire fees it collects to the Authority. The Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia and Seal Beach are considered “cash contract Cities” and accordingly, make cash contributions based on the Authority’s annual budget.

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2021. Upon dissolution of the Authority, all surplus money and property of the Authority will be conveyed or distributed to each member in proportion to all funds provided to the 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, Building A, Irvine, CA 92602.

NOTE 12. COMMITMENTS AND CONTINGENT LIABILITIES
a. The City has been named as a defendant in various lawsuits and claims arising in the course of operations. These lawsuits and claims against the City are incidental to the ordinary course of operations and are largely covered by the City’s self-insurance program. In the opinion of management and the City Attorney, such claims and litigation will not have a material adverse effect upon the financial position or results of the City. To the extent the outcome of such litigation or claims is determined to result in probable financial loss to the City, such loss is accrued in the accompanying basic financial statements.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
72 NOTE 12. COMMITMENTS AND CONTINGENT LIABILITIES (Continued) b. On July 17, 2012, the City entered into a contract with the Orange County Sheriff’s Department for the provision of law enforcement services, which was most recently renewed on May 15, 2018, for a five-year term. This contract constitutes the single largest expenditure from the City’s General Fund each year, representing approximately 30% of the General Fund budget. The contract is reimbursement-based, with a year-end reconciliation payment to adjust for actual costs.
c. On April 19, 2016, the City entered into a Participation Agreement with the County of Orange to fund the City’s proportionate share of the construction costs for the new regional animal shelter at the former Tustin Marine Corps Air Station. Under the Agreement, the City is obligated to pay a total of $509,899 over a ten-year period, reflecting 1.87% of the construction costs for the shelter. The County is also charging the City interest at 0.81%.

These payments are funded from the General Fund operating budget and are made on a quarterly basis. The outstanding balance was $252,744 at June 30, 2021. d. On January 15, 2019, the City entered into an Agreement for Construction of Public Improvements with Orange Housing Development Corporation and C&C Development to rehabilitate the Trueblood House (collectively “the Developer”), a local historic property owned by the City. Under the Agreement, the Developer is required to rehabilitate the structure and the City is required to provide the Developer with funding in the amount of $545,217 toward the costs of the rehabilitation. Payment of the City contribution is anticipated for the fiscal year ended June 30, 2022, and has already been budgeted.

NOTE 13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
The California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Yorba Linda that previously had reported a Redevelopment Agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a Redevelopment Agency, either the City or another unit of local government will agree to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local government. On January 3, 2012, the City Council elected to become the Successor Agency for the former Redevelopment Agency in accordance with the Bill as part of City resolution number 2012-5095.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
73 NOTE 13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
Successor Agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former Redevelopment Agency until all enforceable obligations of the prior Redevelopment Agency have been paid in full and all assets have been liquidated in accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011). All redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012.
a. Cash and Investments
The following is a summary of Successor Agency cash and investments at June 30, 2021:

Pooled cash and investments $ 3,243,627
Restricted cash and investments held with fiscal agent 3,240,327 $ 6,483,954
The Successor Agency’s cash and investments are pooled with the City’s cash and investment in order to generate optimum interest income. The share of the pooled cash account is separately accounted for, and investment income is allocated to all participating funds based on the relationship of their average daily cash balances to the total of the pooled cash and investments. Information regarding the authorized types of deposits and investments, the type of risks (i.e. credit, interest rate, custodial, etc.) and other disclosures associated with the City's pooled cash and investments and those restricted with fiscal agent is reported in Note 3 to the basic financial statements. b. Long-Term Liabilities
A description of long-term liabilities outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2021, follows:

Balance Accreted Balance Due Within
July 1, 2020 Interest Deletions June 30, 2021 One Year
Tax Allocation Bonds $ 41,192,771 $ 780,982 $ 3,040,000 $ 38,933,753 $ 3,310,000 Unamortized Premium 1,878,831 - 154,154 1,724,677 154,154 Unamortized Gain on
Defeasance 3,157,239 - 259,045 2,898,194 259,045
Unamortized Discount (58,448) - (4,795) (53,653) (4,795) Advance from City 2,822,251 - 2,224,171 598,080 598,080 Total $ 48,992,644 $ 780,982 $ 5,672,575 $ 44,101,050 $ 4,316,484 There are a number of limitations and restrictions contained in the various bond indentures.

The City is in compliance with all significant limitations and restrictions.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
74 NOTE 13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
b. Long-Term Liabilities (Continued)
Tax Allocation Bonds
The former Redevelopment Agency pledged, as security for bonds issued, a portion of property tax increment revenue that it receives. The bonds issued were to provide financing for various capital projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to former redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. 1998 Tax Allocation Parity Refunding Bonds, Series A
On June 18, 1998, the Yorba Linda Redevelopment Agency issued $17,131,503 in 1998 Tax Allocation Parity Refunding Bonds, Series A, with interest rates ranging from 4.05% to 5.00% to advance refund the remaining $15,890,000 of outstanding 1989 Tax Allocation Bonds with interest rates ranging from 6.750% to 7.125%.

Current interest serial bonds totaling $12,645,000 were payable in amounts ranging from $1,030,000 to $2,025,000 per year on September 1 of each year, commencing September 1, 2002 through September 1, 2009. Capital appreciation serial bonds with an original amount totaling $4,486,503 are due on each September 1, commencing September 1, 2024 through 2028. The outstanding balance, including the accreted value of $10,647,250 of the capital appreciation bonds at June 30, 2021, was $15,133,753.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest, are as follows:

Fiscal Year Ending
June 30, Principal Interest
2022 - $ - $
2023 - -
2024 - -
2025 996,572 2,936,743
2026 945,335 2,988,352
2027-2030 2,544,596 9,258,265
Total 4,486,503 $ 15,183,360 $
Accretion 10,647,250
$ 15,133,753

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
75 NOTE 13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
b. Long-Term Liabilities (Continued)
2017 Tax Allocation Refunding Bonds, Series A (Tax-Exempt) and B (Taxable) On August 24, 2017, the Successor Agency to the Yorba Linda Redevelopment Agency issued $15,070,000 in tax-exempt Tax Allocation Refunding Bonds, Series A, with interest rates ranging from 3.000% to 5.000%, and $12,570,000 in taxable Tax Allocation Refunding Bonds, Series B, with interest rates ranging from 1.500% to

3.625%. These bonds were issued to refund the following obligations of the former Redevelopment Agency:

1. Partial outstanding balance of the 1993 Tax Allocation Bonds - $14,000,000

2. The outstanding balance of the 2005 Tax Allocation Bonds - $11,770,000

3. The outstanding balance of the 2011 Tax Allocation Bonds - $4,206,250 The 2011 Tax Allocation Bonds were issued shortly before the date on which all California redevelopment agencies were dissolved under State law. Subsequent to the issuance of the 2011 Tax Allocation Bonds, legislation was passed that precluded the Successor Agency from spending the proceeds of these bonds, as they were issued in a specified period shortly before the dissolution date for the Successor Agency.

Subsequent legislation codified in Health and Safety Code sections 34191.4 and 34191.6 established a sliding scale by which some portion of bond proceeds for issuances undertaken just prior to dissolution could be spent following issuance of a Finding of Completion by the California Department of Finance to the Successor Agency. Based on the date of original issuance for the 2011 Tax Allocation Bonds, the Successor Agency was able to utilize 25% of the bond proceeds for their original intended purpose. The remaining 75% could not be spent under State law and would have remained on hand with the bond trustee until the earliest call date for the bonds, at which time an equivalent amount of bonds would be called. The 2017 Tax Allocation Refunding Bonds refunded the entire outstanding amount of 2011 Tax Allocation Bonds and contributed 75% of the original 2011 Tax Allocation Bonds project fund proceeds of $16,574,297 that were on hand at that time toward the refunding as a cash contribution. As a result, the total amount of 2017 Tax Allocation Refunding Bonds outstanding that relate to the 2011 Tax Allocation Bonds transaction was substantially smaller than the amount of 2011 Tax Allocation Bonds that were outstanding prior to the refunding. The total future payments for the refunding debt provide a net present value gain of approximately $13,172,128.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
76 NOTE 13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (Continued)
b. Long-Term Liabilities (Continued)
2017 Tax Allocation Refunding Bonds, Series A (Tax-Exempt) and B (Taxable) (Continued)
Current interest serial bonds for 2017 Tax Allocation Refunding Bonds Series A totaling $14,965,000 are payable in amounts ranging from $15,000 to $3,275,000 per year on September 1 of each year, commencing on September 1, 2018, through September 1, 2032. A term bond of $105,000 is due September 1, 2028. Current interest serial bonds for 2017 Tax Allocation Refunding Bonds Series B totaling $12,570,000 are payable in amounts ranging from $235,000 to $3,290,000 per year on September 1 each year, commencing on September 1, 2018, through September 1, 2032. The outstanding balance at June 30, 2021, was $23,800,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2021, including interest, are as follows:

Fiscal Year Ending
June 30, Principal Interest
2022 3,310,000 $ $ 882,806
2023 3,460,000 723,975
2024 3,640,000 556,056
2025 390,000 464,281
2026 440,000 452,919
2027-2031 7,280,000 1,871,150
2032-2033 5,280,000 207,884
Total 23,800,000 $ 5, $ 159,072
b. Long-Term Liabilities (Continued)
Advances from City
The advances from the City consist of loans made to the former Redevelopment Agency to assist in various Redevelopment projects. The outstanding balance at June 30, 2021, was $598,080 with payment in full expected in the next fiscal year concluding by June 30, 2022. Information regarding the repayment schedule for this advance can be found in Note 5 to the basic financial statements. c. Insurance
The Successor Agency is covered under the City of Yorba Linda’s insurance policies.

Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 7a to the basic financial statements.

CITY OF YORBA LINDA
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
77 NOTE 14. COVID-19
The COVID-19 pandemic had negative financial impacts on fiscal year 2021 and the economic impacts will potentially continue for several more fiscal years. The State, County, and City have put in place measures and protocols to help reduce the spread of the virus and provide financial relief to individuals and businesses. Many of these policies have impacted the City’s revenue sources such as sales tax, transient occupancy tax, and golf course charges for services. The recovery of the local economy and the return of City revenues to pre-COVID levels will depend on many factors that are still unknown. Because of the City’s revenue mix, revenue impacts have been manageable and reductions to service levels have not been necessary to date.

While the City was not eligible for any direct aid under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the City has received funds from the County of Orange from their allocation of CARES Act funds. These funds have been recognized as revenues and utilized as follows:

1. $1,620,095 for business grants to small businesses impacted by the pandemic.

2. $577,460 for the City’s direct costs responding to the pandemic. These funds are anticipated to be utilized to offset staffing costs for those dedicated to the pandemic response, matching funds for anticipated Federal Emergency Management Agency (FEMA) reimbursements for public health expenditures such as facility modifications, and other related expenditures.

The City will be receiving an additional $108,004 from the County of Orange in the upcoming fiscal year to augment meals programs for senior citizens as well as an additional $134,858 for additional small business grants. The State of California has allocated $847,632 of CARES Act funds to the City that will be utilized to offset public safety expenses associated with the pandemic response.

REQUIRED SUPPLEMENTARY INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK
78

CITY OF YORBA LINDA
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual General Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 32, $ 32, 923,982 $ 32, 562,278 $ 994,511 $ 432,233 Licenses and permits 1, 1, 264,100 1, 759,000 905,891 146,891 Intergovernmental 527,471 569,471 (26, 542,712 759)
Charges for services 4, 3, 248,492 3, 224,274 ( 119,143 105,131) Investment income 614,000 500,000 ( 111,580 388,420)
Fines and forfeitures 59,000 59,000 19,483 (39, 517)
Gain on sale of City property 5,000 10,000 12,114 2,114 Miscellaneous 176,100 224,600 (21, 202,986 614)
Total revenues 38, 39,818,145 38, 908,623 ( 908,420 203) Expenditures
General government
Administration 7, 8, 101,600 7, 055,317 126,013 929,304 City Attorney 650,000 650,000 20,185 629,815
Finance 1, 1, 209,844 1, 275,129 159,933 115,196
Public safety 13, 12, 294,757 12, 727,141 584,332 142,809 Community development 3, 3, 275,519 3, 831,882 073,170 758,712 Parks and recreation 7, 7, 216,007 6, 404,179 1, 317,469 086,710 Public works 4, 5, 762,630 4, 730,374 1, 663,484 066,890 Capital outlay 1, 3, 557,895 1, 829,449 2, 552,009 277,440 Debt service
Principal retirement 78,000 135,771 27,500 108,271
Total expenditures 43, 39,146,252 37, 639,242 6, 214,496 424,746 Excess of Revenues over
(under) Expenditures 671,893 (4, 1, 730,619) 6, 693,924 424,543 Other financing sources (uses):

Transfers in 1, 650,895 1, 556,996 ( 054,759 502,237)
Transfers out - - (2, (2, 125,443) 125,443)
Issuance of debt - - - -
Total other financing sources (uses) 650,895 1, (1, 556,996 (2, 070,684) 627,680) Net change in fund balance 1,322,788 (3, 173,623) 3, 623,240 796,863 Fund balance at beginning of fiscal year 36,557,547 36, 36, 557,547 - 557,547 Fund balance at end of fiscal year 37,880,335 $ 33, $ 37, 383,924 $ 3, 180,787 $ 796,863 Budgeted Amount
See note to required supplementary information.
79

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income -$ $ - $ 10,265 $ 10,265
Total revenues - - 10,265 10,265
Expenditures
General government - - - -
Community development - - - -
Capital outlay - - - -
Total expenditures - - - -
Excess of Revenues over
(under) Expenditures - - 10,265 10,265
Other financing sources (uses):

Transfers in - - - -
Transfers out - - - -
Contributions from Successor Agency - - - -
Total other financing sources (uses) - - - -
Net change in fund balance - - 10,265 10,265
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year -$ $ - $ 10,265 $ 10,265 Budgeted Amount

CITY OF YORBA LINDA
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual American Rescue Plan Act
For the Fiscal Year Ended June 30, 2021
See note to required supplementary information.
80

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income 77,000 $ 77,000 $ 735,323 $ 658,323 $ Total revenues 77,000 77,000 735,323 658,323
Expenditures
General government 58,500 58,500 21,622 36,878
Total expenditures 58,500 58,500 21,622 36,878
Excess of Revenues over
(under) Expenditures 18,500 18,500 713,701 695,201
Other financing sources (uses):

Transfers in - 444,834 444,834 -
Total other financing sources (uses) - 444,834 444,834 - Net change in fund balance 18,500 463,334 1,158,535 695,201 Fund balance at beginning of fiscal year 49,381,828 49,381,828 49,381,828 - Fund balance at end of fiscal year 49,400,328 $ 49,845,162 $ 50,540,363 $ 695,201 $ Budgeted Amount

CITY OF YORBA LINDA
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Affordable Housing Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
See note to required supplementary information.
81

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 5,412,500 $ 5,469,200 $ 529,864 $ (4,939,336) $ Total revenues 5,469,200 5,412,500 529,864 (4,939,336)
Expenditures
Capital outlay - 1,341,700 20,009 1,321,691
Total expenditures - 1,341,700 20,009 1,321,691
Excess of Revenues over
(under) Expenditures 5,412,500 4,127,500 509,855 (3,617,645) Other financing sources (uses):

Transfers out (5,412,500) (940,279) (330,985) 609,294
Total other financing sources (uses) (5,412,500) (940,279) (330,985) 609,294 Net change in fund balance - 3,187,221 178,870 (3,008,351) Fund balance (deficit) at beginning of fiscal year (725,130) (725,130) (725,130) - Fund balance (deficit) at end of fiscal year $ (725,130) $ 2,462,091 $ (546,260) $ (3,008,351) Budgeted Amount

CITY OF YORBA LINDA
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Miscellaneous Grants Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
See note to required supplementary information.
82

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 6,726,506 $ 6,726,506 $ 6,982,239 $ 255,733 $
Intergovernmental - 18,239 18,239 -
Charges for services 95,500 95,500 9,197 (86,303)
Investment income 56,000 56,000 (166,448) (222,448)
Fines and forfeitures 50,000 50,000 6,193 (43,807)
Gain on Sale of City Property 3,450,000 3,450,000 3,351,435 (98,565) Miscellaneous - - 64,485 64,485
Total revenues 10,396,245 10,378,006 10,265,340 (130,905) Expenditures
Library 6,322,283 6,480,099 5,638,179 841,920
Capital outlay - 732,306 631,036 101,270
Total expenditures 7,212,405 6,322,283 6,269,215 943,190 Excess of Revenues over
(under) Expenditures 4,055,723 3,183,840 3,996,125 812,285 Other financing sources (uses):

Transfers out - (12,066,939) (11,608,560) 458,379
Total other financing sources (uses) - (12,066,939) (11,608,560) 458,379 Net change in fund balances 4,055,723 (8,883,099) (7,612,435) 1,270,664 Fund balance at beginning of fiscal year 11,536,049 11,536,049 11,536,049 - Fund balance at end of fiscal year 15,591,772 $ 2,652,950 $ 3,923,614 $ 1,270,664 $ Budgeted Amount

CITY OF YORBA LINDA
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Library Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
See note to required supplementary information.
83

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 8,091,518 $ 8,091,518 $ 8,050,711 $ (40,807) $
Investment income 208,000 208,000 (19,166) (227,166)
Total revenues 8,299,518 8,299,518 8,031,545 (267,973)
Expenditures
Public works 8,699,709 9,040,786 8,664,023 376,763
Capital outlay - 2,221,871 1,780,898 440,973
Total expenditures 8,699,709 11,262,657 10,444,921 817,736 Excess of revenues over
(under) expenditures (400,191) (2,963,139) (2,413,376) 549,763 Other financing sources (uses):

Transfers in 1,007,971 1,717,358 1,594,785 (122,573)
Transfers out - - (197,588) (197,588)
Total other financing sources (uses) 1,007,971 1,717,358 1,397,197 (320,161) Net change in fund balances 607,780 (1,245,781) (1,016,179) 229,602 Fund balance at beginning of fiscal year 7,783,746 7,783,746 7,783,746 - Fund balance at end of fiscal year $ 8,391,526 $ 6,537,965 $ 6,767,567 $ 229,602 Budgeted Amount

CITY OF YORBA LINDA
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Landscape Maintenance Assessment District Special Revenue Fund For the Fiscal Year Ended June 30, 2021
See note to required supplementary information.
84

CITY OF YORBA LINDA
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2021
85 1. Infrastructure Assets Reported Using the Modified Approach The City’s infrastructure assets are recorded at historical cost in the government-wide financial statements as required by the GASB Statement No. 34. The maintained subsystem of the City’s major infrastructure network is reported under modified approach and is not subject to depreciation under GASB Statement No. 34
The Public Works Department, in conjunction with City Management, is responsible for determining the appropriate condition level at which the assets are to be maintained. The City documents that eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition level.

A physical condition assessment of the City’s streets is required by the Orange County Transportation Authority (OCTA) every two years for arterial streets and every six years for residential streets. The City contracts with a consultant to assess the City’s pavement condition every two years in order to comply with this requirement. The consultant’s assessment rates the City’s pavement condition based on a Pavement Condition Index (PCI) scale ranging from zero for a failed pavement to 100 for pavement in perfect condition. The most recent report dated June 2020, documented a PCI score of 78 for the City’s pavement. The City Management, in consultation with the Public Works Department, has established the OCTA’s standard for receiving competitive grant funding of a PCI of 75 as the condition level against which the City’s current PCI should be measured. With a current PCI score of 80, the City’s pavement is being maintained at or above this condition level.

The table below provides a five-year historical view of the City’s PCI score, estimated preservation costs to maintain the then-current PCI rating, and the actual preservation costs incurred. The lower actual preservation costs as compared to the estimated preservation costs have been sufficient to maintain the City’s pavement at or above the established and disclosed condition level because:

1. Major capital projects are budgeted on an irregular cycle that does not neatly fit into fiscal years;

2. Actual costs can be lower than estimates; and

3. Actual conditions differ from those assumed in the standard pavement assessment methodology.

This is demonstrated by the stable and at times improving PCI ratings over the five-year period shown in the table.

Fiscal Year Pavement Condition
Index (PCI) Rating
Estimated
Preservation Costs
Actual
Preservation Costs
2015-2016* 83 4,500,000 4,700,000
2016-2017 83 4,500,000 2,900,000
2017-2018* 80 4,800,000 2,000,000
2018-2019 80 4,800,000 2,800,000
2019-2020* 78 4,000,000 3,200,000
2020-2021 78 4,000,000 3,000,000
*Denotes years condition assessment was performed.

CITY OF YORBA LINDA
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
86 2. Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years* Measurement
Date
June 30, 2020
Measurement
Date
June 30, 2019
Measurement
Date
June 30, 2018
Measurement
Date
June 30, 2017
Measurement
Date
June 30, 2016
Measurement
Date
June 30, 2015
Measurement
Date
June 30, 2014**
Total Pension Liability
Service cost 1,696,577 $ 1, $ 623,776 $ 1,458,002 $ 1,472,818 $ 1,318,758 $ 1,295,229 $ 1,290,965 Interest on total pension liability 5,438,271 5,230,301 4,969,509 4,762,222 4,610,554 4,439,809 4,254,542 Changes in assumptions - - (313,447) 4,016,681 - (1,091,497) - Difference between expected and actual
experience (252,047) 716,490 203,742 (618,862) (505,685) (236,444) - Benefit payments, including refunds of
employee contributions (3,648,478) (3,811,074) (3,347,753) (3,089,914) (3,046,770) (2,971,575) (2,848, 785) Net change in total pension liability 3,234,323 3,759,493 2,970,053 6,542,945 2,376,857 1,435,522 2,696,722 Total pension liability - beginning 77,287,722 73,528,229 70,558,176 64,015,231 61,638,374 60,202,852 57,506,130 Total pension liability - ending (a) 80,522,045 77,287,722 73,528,229 70,558,176 64,015,231 61,638,374 60,202,852 Plan Fiduciary Net Position
Contributions - employer 2,329,240 2,063,002 1,833,255 1,483,366 1,186,312 1,121,845 1,245,275 Contributions - employee 1,285,901 1,228,098 1,150,359 1,062,547 979,418 925,172 636,643 Net investment income 2,777,374 3,467,727 4,165,920 4,935,247 222,302 995,586 6,731,502 Benefit payments, including refunds of
employee contributions (3,648,478) (3,811,074) (3,347,753) (3,089,914) (3,046,770) (2,971,575) (2,848,785) Net plan to plan resource movement - - (122) - - - -
Administrative expense (77,902) (37,357) (75,993) (65,616) (27,503) - - Other miscellaneous income/(expense) - 122 (144,313) - - - - Net change in plan fiduciary net position 2,666,135 2,910,518 3,581,353 4,325,630 (686,241) 20,234 5,764,635 Plan fiduciary net position - beginning 55,259,554 52,349,036 48,767,683 44,442,053 45,128,294 45,108,060 39,343,425 Plan fiduciary net position - ending (b) 57,925,689 55,259,554 52,349,036 48,767,683 44,442,053 45,128,294 45,108,060 Plan net pension liability - ending (a) - (b) $ 22,596,356 $ 22,028,168 $ 21,179,193 $ 21,790,493 $ 19,573,178 $ 16,510,080 $ 15,094,792 Plan fiduciary net position as a
percentage of the total pension liability 71.94% 71.50% 71.20% 69.12% 69.42% 73.21% 74.93% Covered payroll $ 9,973,996 $ 9,336,874 $ 8,523,335 $ 8,519,800 $ 8,331,278 $ 7,983,907 $ 7,672,440 Net pension liability as a percentage of
covered payroll 235.93% 235.93% 248.48% 255.76% 234.94% 206.79% 196.74% * Fiscal year 2015 was the first year of implementation, therefore only six years are shown ** Covered payroll is based on pensionable earnings per CalPERS for 2014

CITY OF YORBA LINDA
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
87 2. Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years* (Continued) Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019, valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

3. Schedule of Pension Contributions – Last 10 Years*
Fiscal year ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution 3,625,393 $ 2,001,025 $ $ 1,706,948 $ 1,417,449 $ 1,268,816 $ 1,186,312 $ 1,121,845 Contributions in relation to the
actuarially determined contributions (3,625,393) (2,329,240) (2,063,002) (1,833,255) (1,483,366) (1,186,312) (1,121,845) Contribution deficiency (excess) $ - $ (328,215) $ (356,054) $ (415,806) $ (214,550) $ - $ - Covered payroll $ 10,319,031 $ 9,973,996 $ 9,336,874 $ 8,523,335 $ 8,519,800 $ 8,331,278 $ 7,983,907 Contributions as a percentage of covered
payroll

35.13% 23.35% 22.10% 21.51% 17.41% 14.24% 14.05%
*Fiscal year 2015 was the first year of implementation, therefore only six years are shown.

Notes to Schedule of Pension Contributions
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Amortization Method Level Percent of Payroll
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.88%
Projected Salary Increase 0.40% - 8.50% (1)
Investment Rate of Return 7.25% (2)
Mortality Derived using CalPERS' Membership Data for all Funds (1) Depending on age, service and type of employment.
(2) Net of pension plan investment and administrative expenses, including inflation.

CITY OF YORBA LINDA
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
88 4. Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years* Measurement Date Measurement Date Measurement Date Measurement Date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability
Service cost $ 514,178 $ 1,041,877 $ 1,616,456 $ 1,559,082 Interest on total OPEB liability 1,081,753 1,103,430 1,051,971 879,863 Differences between expected and actual experience (738,379) (3,081,922) (2,643,488) - Changes in assumptions (1,509,066) (4,249,457) (3,754,316) (3,742,978) Benefit payments, including refunds of employee contributions (688,476) (708,272) (701,025) (734,912) Net change in total OPEB liability (1,339,990) (5,894,344) (4,430,402) (2,038,945) Total OPEB liability - beginning 16,995,487 22,889,831 27,320,233 29,359,178 Total OPEB liability - ending (a) 15,655,497 16,995,487 22,889,831 27,320,233 Plan Fiduciary Net Position
Contributions - employer 919,194 942,684 935,437 1,170,145 Net investment income 22,861 57,133 17,983 1,266
Benefit payments, including refunds of employee contributions (688,476) (708,272) (701,025) (935,739) Administrative expense (437) (133) (184) (1)
Other - - (309) -
Net change in plan fiduciary net position 253,142 291,412 251,902 233,139 Plan fiduciary net position - beginning 776,453 485,041 233,139 - Plan fiduciary net position - ending (b) 1,029,595 776,453 485,041 233,139 Net OPEB liability - ending (a) - (b) $ 14,625,902 $ 16,219,034 $ 22,404,790 $ 27,087,094 Plan fiduciary net position as a percentage of the total OPEB liability

6.58% 4.57% 2.12% 0.85%
Covered payroll $ 9,973,996 $ 9,336,874 $ 8,523,335 $ 8,519,800 Net OPEB liability as a percentage of covered payroll 146.64% 173.71% 262.86% 317.93% *Fiscal year 2018 was the first year of implementation, therefore only four years are shown.

CITY OF YORBA LINDA
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
89 5. Schedule of OPEB Contributions – Last 10 Years*
Fiscal year ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution $ 919,194 $ 1,909,606 $ 2,107,584 $ 2,088,038 Contributions in relation to the
actuarially determined contributions (919,194) (771,379) (832,398) (1,170,151) Contribution deficiency (excess) $ - $ 1,138,227 $ 1,275,186 $ 917,887 Covered payroll $ 10,319,031 $ 9,865,852 $ 9,336,874 $ 8,523,335 Contributions as a percentage of
covered payroll 8.91% 7.82% 8.92% 13.73%
*Fiscal year 2018 was the first year of implementation, therefore only four years are shown.

Notes to Schedule of OPEB Contributions
Valuation Date June 30, 2021
Measurement Date June 30, 2020
Amortization Method Level Percent of Payroll
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.00%
Inflation 2.75%
Projected Salary Increase 0.40% - 8.50% (1)
Investment Rate of Return 7.00% (2)
Mortality Derived using CalPERS' Membership Data for all Funds (1) Depending on age, service and type of employment.
(2) Assumes the City invests in the CERBT under its investment allocation strategy.

CITY OF YORBA LINDA
Note to Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2021
90 NOTE 1. BUDGETARY DATA
All financial activities of the General Fund, Special Revenue Funds, Capital Projects Funds, and Debt Service Funds are part of the appropriated budget. Appropriated amounts are as originally adopted or as amended by the City Council throughout the year. The following general procedures are followed in establishing the annual budget:

1. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Manager may approve additional appropriations up to $25,000 per transaction and may authorize the transfer of budgeted amounts between items, accounts, and programs within the same department. Any increase in total appropriations over $25,000 per transaction or transfer of budgeted amounts between departments or funds must be approved by the City Council.

3. Formal budgetary integration is employed as a management control device during the year. The legal level of budgetary control is at the department level within each fund, with budget transfers between departments or funds requiring approval by the City Council.

4. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America (U.S.

GAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. Budgets are adopted for all governmental fund types, on a basis consistent with the U.S. GAAP, except for the purchases and sales of land that are recognized as expenditures and revenues, respectively. The modified accrual basis of accounting is employed in the preparation of the budget. Budget comparisons are not presented for the Proprietary, Agency, and Trust Funds, as the City is not legally required to adopt a budget for these fund types.

5. At fiscal year-end operating budget appropriations lapse; however, incomplete capital improvement project appropriations within Capital Projects Funds, appropriations related to outstanding encumbrances, and authorized non-capital appropriations can be carried over to the following fiscal year with approval of the City Council.

OTHER SUPPLEMENTARY INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Improvements Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Expenditures
Capital outlay - $ 17,267,143 $ 14,960,963 $ 2,306,180 $ Total expenditures 17,267,143 - 14,960,963 2,306,180
Excess of Revenues over
(under) Expenditures - (17,267,143) (14,960,963) 2,306,180 Other financing sources (uses):

Transfers in 14,452,000 17,267,143 14,960,963 2,306,180 Total other financing sources (uses) 14,452,000 17,267,143 14,960,963 2,306,180 Net change in fund balance 14,452,000 - - 4,612,360
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year 14,452,000 $ - $ - $ 4,612,360 $ Budgeted Amount
91

CITY OF YORBA LINDA
For the Year Ended June 30, 2021
92 DESCRIPTION OF NONMAJOR FUNDS
Special Revenue Funds
The Special Revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes.

Gas Tax Fund – To account for the City’s share of State gas tax revenues. The tax allocations are expended on street maintenance and street construction.

Traffic Safety Fund – To account for revenues generated from enforcement of the California Vehicle Code and City ordinances. These funds may only be used for traffic signals, school crossing guards and other related traffic safety expenditures.

CDBG Grant Fund – To account for Housing and Community Development Act revenues and expenditures for social services, neighborhood and commercial improvement projects, and program administration.

Citizens Option Public Safety Fund – To account for the revenues allocated by the State for enhanced levels of law enforcement.

AQMD Fund – To account for the revenues allocated by the Southern California Air Quality Management District (SCAQMD) and restricted for expenditures that improve local area air quality.

Measure M2 Fund – To account for county transportation tax revenues for street projects within the City.

SB-2 Fund – To account for the City’s allocation of funds from California Senate Bill 2, which are utilized for homeless outreach and shelter services.

COVID-19 Grant Fund – To account for the City’s allocation of CARES Act funds from the State of California and the County of Orange.

Mortgage Assistance Program Fund – To account for financial resources segregated to help low and moderate income people purchase their first home.

PEG Fund – To account for franchise fees collected from cable television providers that are required to be used for capital expenditures related to the City’s public, educational, and government access television channels.

Road Maintenance and Rehabilitation Fund – To account for the City’s share of funds used to address basic road maintenance, rehabilitation and critical safety needs on local streets, which is funded through a per gallon fuel tax and vehicle registration fees.

CITY OF YORBA LINDA
For the Year Ended June 30, 2021
93 Capital Projects Funds
The Capital Projects funds are used to account for the acquisition and construction of various capital improvements and equipment for the City.

Parking In-Lieu Fund – To account for fees received from developers and businesses operating in the City’s Town Center to purchase parking allocations in the City’s parking structure in lieu of providing onsite parking as required for their development or business proposal. Funds collected following the construction of the parking structure will be utilized for future public parking improvements in the Town Center.

Park In-Lieu Fund – To account for development impact fees used for the acquisition of parklands and the construction of park and recreation facilities.

Lighting and Signal Project Improvements Fund – To account for a portion of funds received in the lighting and traffic signal zones of the Landscape Maintenance Assessment District that have been allocated to street lighting and traffic signal capital projects.

Master Plan of Drainage Fund – To account for development impact fees used for the construction of major drainage improvements within the City.

Traffic Signal Improvements Fund – To account for development impact fees used for the construction of major street and traffic signal improvements within the City.

CITY OF YORBA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Gas Tax Traffic Safety CDBG Grant AQMD Measure M2 SB-2 COVID-19 Assets:

Pooled cash and investments 4,526,568 $ - $ - $ $ 3, 1,062,997 $ - 316,040 $ 3,058 $ Receivables:

Accounts - - - - - - -
Accrued interest 2,911 - - 2,513 7,205 - (48)
Advances to other funds - - - - - - -
Due from other Governments - 3,169 63,678 22,793 183,847 153,946 409,400 Total assets 3,169 4,529,479 63,678 1, 3, 088,303 507,092 153,946 412,410 Liabilities and fund balances:

Liabilities:

Accounts payable 6,900 - - 4,000 81,651 3,300 151,999
Due to other funds - 3,169 63,678 - - 47,416 160,530
Total liabilities 3,169 6,900 63,678 4,000 81,651 199,415 163,830 Deferred inflows of resources:

Unavailable revenues - - - - - 47,417 409,400
Total deferred inflows of resources - - - - - 47,417 409,400 Fund balances:

Restricted for:

General Government - - - - - - -
Parks and recreation - - - - - - -
Public works 4,522,579 - - 1,084,303 3,425,441 - -
Low and moderate housing - - - - - - -
Unassigned (deficit) - - - - - (92,886) (160,820)
Total fund balances (deficit) - 4,522,579 - 1, 3, 084,303 ( 425,441 ( 92,886) 160,820) Total liabilities and fund balances (deficit) $ 3,169 4,529,479 $ 63,678 $ $ 3, 1,088,303 $ 507,092 $ 201,363 $ 412,410 Special Revenue Funds
94

CITY OF YORBA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Total
Mortgage Road Lighting and Traffic Nonmajor
Assistance Maintenance Parking Signal Master Plan Signal Governmental Program PEG and Rehabilitation in-lieu Park In-Lieu Project of Drainage Improvements Funds $ 182,549 $ 126,654 $ 28,159 1,109,986 $ $ 5,810,866 $ 973,989 $ 5,082,983 $ 1,654,377 $ 23,878,226 34,382 - - - - - - - 34,382
1,047 39 215 (561) 4,465 (273) 18,464 2,889 38,866
- - - - - - 2,300,000 - 2, 300,000
- - 231,917 - - - - - 1, 068,750
183,596 1, 161,075 27,598 342,118 5, 815,331 7, 973,716 1, 401,447 657,266 27,320,224

- - - 18,916 - 50,925 31,700 349,391
- - - - - - - - 274,793
- - - - 18,916 - 50,925 31,700 624,184
- - - - - - - 456,817
- - - - - - - - 456,817
- 161,075 - - - - - - 161,075
- - - - 5,796,415 - - - 5, 796,415
- - 1,342,118 27,598 - 973,716 7,350,522 1,625,566 20,351, 843 183,596 - - - - - - - 183,596
- - - - - - - - ( 253,706)
183,596 1, 161,075 27,598 342,118 5, 796,415 7, 973,716 1, 350,522 625,566 26,239,223 $ 183,596 $ 161,075 $ 27,598 1,342,118 $ $ 5,815,331 $ 973,716 $ 7,401,447 $ 1,657,266 $ 27,320,224 Capital Projects Funds
95

CITY OF YORBA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2021
Citizens
Traffic Option Public
Gas Tax Safety CDBG Grant Safety AQMD Measure M2 SB-2
Revenues:

Taxes - $ - $ - $ - $ - $ - $ - $
Intergovernmental 1,506,138 - 154,005 163,357 89,642 1,095,733 106,529 Investment income 11,483 - - - 569 9,451 -
Fines and forfeitures - 37,324 - - - - -
Developer participation - - - - - - -
Miscellaneous - - - - - 8,647 -
Total revenues 37,324 1,517,621 154,005 163,357 90,211 1,113,831 106,529 Expenditures:

Capital outlay 491,973 - 41,500 - 62,103 356,813 -
General government - - - - - - 151,998
Community development - - 112,505 - - - -
Total expenditures - 491,973 154,005 - 62,103 356,813 151,998 Excess (Deficiency) of revenues
over (under) expenditures 1,025,648 37,324 - 163,357 28,108 757,018 (45,469) Other financing sources (uses):

Transfers in - - - - - - -
Transfers out (794,319) (37,324) - (163,357) - (633,230) - Total other financing
sources (uses) (37,324) (794,319) - (163,357) - (633,230) - Net change in fund balances 231,329 - - - 28,108 123,788 (45,469) Fund balances at beginning of fiscal year 4,291,250 - - - 1,056,195 3,301,653 (47,417) Fund balances (deficit) end of fiscal year $ - 4,522,579 $ - $ - $ 1,084,303 $ 3,425,441 $ (92,886) $ Special Revenue Funds
96

CITY OF YORBA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2021
Road Total
Mortgage Maintenance Lighting and Traffic Nonmajor
Assistance and Parking Signal Master Plan Signal Governmental COVID-19 Program PEG Rehabilitation in-lieu Park In-Lieu Project of Drainage Improvements Funds $ - - $ 140,982 $ - $ - $ - $ - $ - $ - $ 140,982 $
1,012,899 - - 1,272,671 - - - - - 5,400,974
5,758 (1,648) (1,208) 9,401 (330) 19,034 16,025 (21,482) ($38) 47,015 - - - - - - - - - 37,324
- - - - 16,571 329,297 - 64,704 37,965 448,537
- - - - - - - - - 8,647
(1,648) 1,018,657 139,774 1,282,072 16,241 348,331 16,025 43,222 37,927 6,083,479 - - - 4,265 - 177,065 - 266,360 123,219 1,523,298
846,354 - 3,950 - - - - - - 1,002,302
148,154 - - - - - - - - 260,659
148,154 846,354 3,950 4,265 - 177,065 - 266,360 123,219 2,786,259 (149,802) 172,303 135,824 1,277,807 16,241 171,266 16,025 (223,138) (85,292) 3,297,220 - - - - - - 197,588 - - 197,588
- (711,777) (383,238) (791,563) - - - - (475,545) (3,990,353) - (711,777) (383,238) (791,563) - - 197,588 - (475,545) (3,792,765) (149,802) (539,474) (247,414) 486,244 16,241 171,266 213,613 (223,138) (560,837) (495,545) 378,654 333,398 408,489 855,874 11,357 5,625,149 760,103 7,573,660 2,186,403 26,734,768 $ 183,596 (160,820) $ 161,075 $ 1,342,118 $ 27,598 $ 5,796,415 $ 973,716 $ 7,350,522 $ 1,625,566 $ 26,239,223 $ Capital Projects Funds
97

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 1,741,141 $ 1,506,138 $ (235,003) $
Investment income 55,000 11,483 (43,517)
Total revenues 1,517,621 1,796,141 (278,520)
Expenditures
Capital outlay 2,217,500 491,973 1,725,527
Total expenditures 491,973 2,217,500 1,725,527
Excess (Deficiency) of Revenues
over (under) Expenditures (421,359) 1,025,648 (2,004,047) Other financing sources (uses):

Transfers out (319,355) (794,319) (474,964)
Total other financing sources (uses) (319,355) (794,319) (474,964) Net change in fund balance (740,714) 231,329 (2,479,011) Fund balance at beginning of fiscal year 4,291,250 4,291,250 - Fund balance at end of fiscal year 3,550,536 $ 4,522,579 $ (2,479,011) $ 98

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Fines and forfeitures 70,000 $ 37,324 $ (32,676) $
Total revenues 37,324 70,000 (32,676)
Other financing sources (uses):

Transfers out (70,000) (37,324) 32,676
Total other financing sources (uses) (37,324) (70,000) 32,676 Net change in fund balance - - -
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year - $ - $ - $
99

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual CDBG Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 242,676 $ 154,005 $ (88,671) $
Total revenues 154,005 242,676 (88,671)
Expenditures
Capital outlay - 41,500 (41,500)
Community development 271,687 112,505 159,182
Total expenditures 154,005 271,687 117,682
Excess (Deficiency) of revenues over
(under) expenditures (29,011) - 29,011
Other financing sources (uses):

Transfers out (60,000) - 60,000
Total other financing sources (uses) - (60,000) 60,000
Net change in fund balance (89,011) - 89,011
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year (89,011) $ - $ 89,011 $ 100

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Citizens Option for Public Safety Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 173,000 $ 163,357 $ (9,643) $
Investment income 2,100 - (2,100)
Total revenues 163,357 175,100 (11,743)
Other financing sources (uses):

Transfers out (175,100) (163,357) 11,743
Total other financing sources (uses) (163,357) (175,100) 11,743 Net change in fund balance - - -
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year - $ - $ - $
101

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AQMD Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 85,000 $ 89,642 $ 4,642 $
Investment income 32,000 569 (31,431)
Total revenues 90,211 117,000 (26,789)
Expenditures
Capital outlay 233,064 62,103 170,961
Total expenditures 62,103 233,064 170,961
Excess (Deficiency) of revenues over
(under) expenditures (116,064) 28,108 144,172
Other financing sources (uses):

Transfers out (82,000) - 82,000
Total other financing sources (uses) - (82,000) 82,000
Net change in fund balance (198,064) 28,108 226,172
Fund balance at beginning of fiscal year 1,056,195 1,056,195 - Fund balance at end of fiscal year 858,131 $ 1,084,303 $ 226,172 $ 102

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure M Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 1,114,073 $ 1,095,733 $ (18,340) $
Investment income 85,000 9,451 (75,549)
Miscellaneous - 8,647 8,647
Total revenues 1,113,831 1,199,073 (85,242)
Expenditures
Capital outlay 987,434 356,813 630,621
Total expenditures 356,813 987,434 630,621
Excess (Deficiency) of revenues over
(under) expenditures 211,639 757,018 545,379
Other financing sources (uses):

Transfers out (1,141,376) (633,230) 508,146
Total other financing sources (uses) (633,230) (1,141,376) 508,146 Net change in fund balance (929,737) 123,788 1,053,525
Fund balance at beginning of fiscal year 3,301,653 3,301,653 - Fund balance at end of fiscal year 2,371,916 $ 3,425,441 $ 1,053,525 $ 103

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual SB-2 Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental - $ 106,529 $ 106,529 $
Total revenues 106,529 - 106,529
Expenditures
General government 165,641 $ 151,998 $ 13,643 $
Total expenditures 151,998 165,641 13,643
Net change in fund balance (165,641) (45,469) 120,172
Fund balance at beginning of fiscal year (47,417) (47,417) - Fund balance (deficit) at end of fiscal year (378,699) $ (92,886) $ 240,344 $ 104

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual COVID-19 Grant Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 324,017 $ 1,012,899 $ 688,882 $
Investment income - 5,758 5,758
Total revenues 1,018,657 324,017 694,640
Expenditures
General government 966,307 846,354 119,953
Total expenditures 846,354 966,307 119,953
Excess of Revenues over Expenditures (642,290) 172,303 814,593 Other financing sources (uses):

Transfers out (711,777) (711,777) -
Total other financing sources (uses) (711,777) (711,777) - Net change in fund balance (1,354,067) (539,474) 814,593 Fund balance at beginning of fiscal year 378,654 378,654 - Fund balance at end of fiscal year (975,413) $ (160,820) $ 814,593 $ 105

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Mortgage Assistance Program Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 10,000 $ (1,648) $ (11,648) $
Total revenues (1,648) 10,000 (11,648)
Expenditures
Community development 315,000 148,154 166,846
Total expenditures 148,154 315,000 166,846
Excess (Deficiency) of Revenues over
(under) Expenditures (305,000) (149,802) 155,198
Net change in fund balance (305,000) (149,802) 322,044
Fund balance at beginning of fiscal year 333,398 333,398 - Fund balance at end of fiscal year 28,398 $ 183,596 $ 322,044 $ 106

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual PEG Special Revenue Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Taxes 162,000 $ 140,982 $ (21,018) $
Investment income 9,500 (1,208) (10,708)
Total revenues 139,774 171,500 (31,726)
Expenditures
General Government 3,950 3,950 -
Total expenditures 3,950 3,950 -
Excess (Deficiency) of Revenues over
(under) Expenditures 167,550 135,824 (31,726)
Other financing sources (uses):

Transfers out (509,229) (383,238) 125,991
Total other financing sources (uses) (383,238) (509,229) 125,991 Net change in fund balance (247,414) (341,679) 94,265
Fund balance at beginning of fiscal year 408,489 408,489 - Fund balance at end of fiscal year 66,810 $ 161,075 $ 94,265 $ 107

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Road Maintenance and Rehabilitation Special Revenue Fund For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 1,190,286 $ 1,272,671 $ 82,385 $
Investment income 24,000 9,401 (14,599)
Total revenues 1,282,072 1,214,286 67,786
Expenditures
Capital outlay 1,144,066 4,265 1,139,801
Total expenditures 4,265 1,144,066 1,139,801
Excess (Deficiency) of Revenues over
(under) Expenditures 70,220 1,277,807 1,207,587
Other financing sources (uses):

Transfers out (791,563) (791,563) -
Total other financing sources (uses) (791,563) (791,563) - Net change in fund balance 486,244 (721,343) 1,207,587
Fund balance at beginning of fiscal year 855,874 855,874 - Fund balance at end of fiscal year 134,531 $ 1,342,118 $ 1,207,587 $ 108

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Parking In-Lieu Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income - $ (330) $ (330) $
Developer participation - 16,571 16,571
Total revenues 16,241 - 16,241
Other financing sources (uses):

Transfers out - -
Total other financing sources (uses) - - -
Net change in fund balance - 16,241 16,241
Fund balance at beginning of fiscal year 11,357 11,357 - Fund balance at end of fiscal year 11,357 $ 27,598 $ 16,241 $ 109

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Park In-Lieu Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 121,000 $ 19,034 $ (101,966) $
Developer participation 200,600 329,297 128,697
Total revenues 348,331 321,600 26,731
Expenditures
Capital outlay 4,344,158 177,065 4,167,093
Total expenditures 177,065 4,344,158 4,167,093
Excess (Deficiency) of Revenues over
(under) Expenditures (4,022,558) 171,266 4,193,824
Other financing sources (uses):

Transfers out (402,053) - 402,053
Total other financing sources (uses) - (402,053) 402,053 Net change in fund balance (4,424,611) 171,266 4,595,877 Fund balance at beginning of fiscal year 5,625,149 5,625,149 - Fund balance at end of fiscal year 1,200,538 $ 5,796,415 $ 4,595,877 $ 110

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Lighting and Signal Project Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income $ 16,025 - $ 16,025 $
Developer participation - - -
Total revenues 16,025 - 16,025
Other financing sources (uses):

Transfers in - $ 197,588 $ 197,588 $
Total other financing sources (uses) 197,588 - 197,588
Net change in fund balance - 213,613 213,613
Fund balance at beginning of fiscal year 760,103 760,103 - Fund balance at end of fiscal year 760,103 $ 973,716 $ 213,613 $ 111

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Master Plan of Drainage Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 210,000 $ (21,482) $ (231,482) $
Developer participation 150,000 64,704 (85,296)
Total revenues 43,222 360,000 (316,778)
Expenditures
Capital outlay 400,000 266,360 133,640
Total expenditures 266,360 400,000 133,640
Excess (Deficiency) of Revenues over
(under) Expenditures (40,000) (223,138) (183,138)
Total other financing sources (uses) - - -
Net change in fund balance (40,000) (223,138) (183,138) Fund balance at beginning of fiscal year 7,573,660 7,573,660 - Fund balance at end of fiscal year 7,533,660 $ 7,350,522 $ (183,138) $ 112

CITY OF YORBA LINDA
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Signal Improvements Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 56,300 $ (38) $ (56,338) $
Developer participation 100,000 37,965 (62,035)
Total revenues 37,927 156,300 (118,373)
Expenditures
Capital outlay 150,000 123,219 26,781
Total expenditures 123,219 150,000 26,781
Excess (Deficiency) of Revenues over
(under) Expenditures 6,300 (85,292) (91,592)
Other financing sources (uses):

Transfers out (527,902) (475,545) 52,357
Total other financing sources (uses) (475,545) (527,902) 52,357 Net change in fund balance (521,602) (560,837) (39,235) Fund balance at beginning of fiscal year 2,186,403 2,186,403 - Fund balance at end of fiscal year 1,664,801 $ 1,625,566 $ (39,235) $ 113

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STATISTICAL SECTION
114
This part of the City of Yorba Linda’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

Contents Page
Financial Trends 115
These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time.

Revenue Capacity 125
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax.

Debt Capacity 129
These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future.

Demographic and Economic Information 134
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place.

Operating Information 137

These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.

CITY OF YORBA LINDA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accoutning)
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets 373,877,302 $ 365,798,892 $ 368,711,483 $ 369,642,916 $ 375,388,766 $ Restricted 67,890,506 69,343,128 73,066,968 78,795,131 84,293,217 Unrestricted (deficit) 43,679,602 44,899,948 46,198,664 31,529,685 28,716,148 Total governmental activities net position 485,447,410 480,041,968 487,977,115 479,967,732 488,398,131 Business-type activities:

Net investment in capital assets 10,865,545 12,092,484 7,567,000 6,425,228 5,780,632 Restricted - - - - -
Unrestricted (deficit) (7,072,811) (9,581,881) (5,563,647) (5,045,542) (3,721,769) Total business-type activities net assets 3,792,734 2,510,603 2,003,353 1,379,686 2,058,863 Primary Government:

Net investment in capital assets 384,742,847 377,891,376 376,278,483 376,068,144 381,169,398 Restricted 67,890,506 69,343,128 73,066,968 78,795,131 84,293,217 Unrestricted (deficit) 36,606,791 35,318,067 40,635,017 26,484,143 24,994,379 Total primary government net position 489,240,144 $ 482,552,571 $ 489,980,468 $ 481,347,418 $ 490,456,994 $ Fiscal Year
Source: City of Yorba Linda, Finance Department.
115

CITY OF YORBA LINDA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accoutning)
2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 376,813,472 $ 393,042,394 $ 380,956,770 $ 404,615,432 $ 424,485,221 $ Restricted 88,147,090 89,319,318 108,594,404 95,479,106 87,730,127 Unrestricted (deficit) 30,924,813 2,056,587 9,383,520 (8,718,665) (5,602,336) Total governmental activities net position 495,885,375 484,418,299 498,934,694 491,375,873 506,613,012 Business-type activities:

Net investment in capital assets 25,162,397 24,442,477 23,846,232 23,323,238 23,039,783 Restricted - - - - -
Unrestricted (deficit) (23,363,950) (22,918,767) (22,995,261) (2,543,666) (2,376,682) Total business-type activities net assets 1,798,447 1,523,710 850,971 20,779,572 20,663,101 Primary Government:

Net investment in capital assets 401,975,869 417,484,871 404,803,002 427,938,670 447,525,004 Restricted 88,147,090 89,319,318 108,594,404 95,479,106 87,730,127 Unrestricted (deficit) 7,560,863 (20,862,180) (13,611,741) (11,262,331) (7,979,018) Total primary government net assets 497,683,822 $ 485,942,009 $ 499,785,665 $ 512,155,445 $ 527,276,113 $ Source: City of Yorba Linda, Finance Department.
116

CITY OF YORBA LINDA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2012 2013 2014 2015 2016
Expenses
Governmental activities:

General government 10,619,768 $ 9,389,912 $ 9,882,765 $ 9,589,107 $ 11,181,226 $ Public safety 11,611,513 9,748,242 10,819,766 9,625,078 10,194,206 Community development 2,592,555 2,947,842 4,248,543 3,301,567 3,307,460 Parks and recreation 6,401,468 6,412,609 5,891,506 6,893,996 6,829,957 Library - - - - -
Public works 9,764,371 23,195,904 14,978,073 14,666,439 13,659,070 Contributions from other governments - 679,782 - - -
Interest on long-term debt 2,923,034 - - - -
Total governmental activites expenses 43,912,709 52,374,291 45,820,653 44,076,187 45,171,919 Business-type activities:

Golf Course 6,733,251 6,365,717 6,395,656 6,105,749 5,692,893 Disposal 5,081,581 5,164,390 5,188,805 3,889,115 -
Yorba Linda Center Catering - 120,977 156,894 176,712 174,854 Total business-type activities expenses 11,814,832 11,651,084 11,741,355 10,171,576 5,867,747 Total primary government expenses 55,727,541 64,025,375 57,562,008 54,247,763 51,039,666 Program Revenues
Governmental activities:

Charges for services
General government 1,253,214 1,234,855 826,650 838,008 975,797 Public safety 229,587 174,508 142,843 134,503 128,051
Community development 2,084,327 2,013,659 2,042,831 2,786,159 2,284,965 Recreation and community services 1,843,262 1,806,052 2,070,339 3,165,573 2,853,198 Library - - - - -
Public works 429,704 420,871 306,689 660,693 1,573,551
Operating grants and contributions 2,794,278 5,383,963 3,144,728 2,471,970 1,850,120 Capital grants and contributions 2,496,666 685,434 8,301,311 4,451,347 3,687,861 Total governmental activites program revenues 11,131,038 11,719,342 16,835,391 14,508,253 13,353,543 Business-type activities:

Charges for services:

Golf Course 5,869,100 5,670,123 5,799,564 5,886,365 5,811,759 Refuse 5,212,512 5,065,036 5,332,477 3,956,222 -
Yorba Linda Center Catering - 29,481 101,816 133,888 184,185 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 11,081,612 10,764,640 11,233,857 9,976,475 5,995,944 Total primary government program revenues 22,212,650 22,483,982 28,069,248 24,484,728 19,349,487 Net (expense)/revenue
Governmental activities (32,781,671) (40,654,949) (28,985,262) (29,567,934) (31,818,376) Business-type activities (733,220) (886,444) (507,498) (195,101) 128,197 Total net revenues (expenses) $ (33,514,891) $ (41,541,393) $ (29,492,760) $ (29,763,035) $ (31,690,179) Fiscal Year
Source: City of Yorba Linda, Finance Department.
117

CITY OF YORBA LINDA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2017 2018 2019 2020 2021
Expenses
Governmental activities:

General government 10,794,754 $ 8,604,233 $ 7,182,245 $ 7,850,800 $ 9,360,113 $ Public safety 10,751,963 11,691,912 11,839,819 12,455,656 11,755,722 Community development 3,076,508 9,363,144 2,864,767 3,329,740 2,705,644 Parks and recreation 7,401,076 7,535,284 7,431,280 6,762,170 6,623,647 Library - 3,967,009 4,746,418 4,780,791 5,262,202
Public works 22,728,098 11,202,747 21,174,891 19,646,992 14,300,587 Contributions from other governments - - - - -
Interest on long-term debt - - - - 108,271
Total governmental activites expenses 54,752,399 52,364,329 55,239,420 55,307,560 49,634,775 Business-type activities:

Golf Course 6,043,094 6,092,497 6,709,630 6,298,218 6,695,753 Disposal - - - - -
Yorba Linda Center Catering 179,229 220,618 200,518 - - Total business-type activities expenses 6,222,323 6,313,115 6,910,148 6,298,218 6,695,753 Total primary government expenses 60,974,722 58,677,444 62,149,568 61,605,778 56,330,528 Program Revenues
Governmental activities:

Charges for services
General government 1,053,695 1,127,014 1,479,021 4,399 10,769 Public safety 130,010 838 - 40,733 56,807
Community development 2,444,166 516,178 55,380 1,643,000 2,007,274 Recreation and community services 3,040,194 1,838,992 1,835,129 1,149,503 1,065,415 Library - 110,951 130,000 90,262 15,390
Public works 349,656 189,317 329,930 221,495 304,666
Operating grants and contributions 1,972,296 3,938,022 3,923,715 5,136,854 3,474,747 Capital grants and contributions 4,917,936 3,011,719 12,158,579 7,025,870 5,418,822 Total governmental activites program revenues 13,907,953 10,733,031 19,911,754 15,312,116 12,353,890 Business-type activities:

Charges for services:

Golf Course 5,779,197 5,824,698 6,042,347 5,455,174 6,526,689 Refuse - - - - -
Yorba Linda Center Catering 170,462 209,615 195,062 - - Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 5,949,659 6,034,313 6,237,409 5,455,174 6,526,689 Total primary government program revenues 19,857,612 16,767,344 26,149,163 20,767,290 18,880,579 Net (expense)/revenue
Governmental activities (40,844,446) (41,631,298) (35,327,666) (39,995,444) (37,280,885) Business-type activities (272,664) (278,802) (672,739) (843,044) (169,064) Total net revenues (expenses) $ (41,117,110) $ (41,910,100) $ (36,000,405) $ (40,838,488) $ (37,449,949) Fiscal Year
Source: City of Yorba Linda, Finance Department.
118

CITY OF YORBA LINDA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2012 2013 2014 2015 2016
Fiscal Year
General Revenues and Other Changes in Net Position
Governmental activities:

Property taxes 25,449,260 $ 19,209,305 $ 19,463,202 $ 20,803,253 $ 22,256,451 $ Sales taxes 5,536,418 5,668,119 6,108,523 6,515,766 7,215,608 Franchise taxes 2,091,150 2,088,406 2,086,354 2,239,149 2,271,901 Transient occupancy taxes - - 434,583 442,656 488,437
Business licenses taxes 364,788 335,799 433,511 378,306 395,184 Other taxes 7,316,749 7,032,922 6,810,919 6,903,837 6,995,040 Motor vehicle in lieu, unrestricted 34,271 35,511 29,389 28,389 27,323 Investment income 1,529,085 (125,819) 699,314 577,480 559,845 Other 136,043 1,005,264 854,614 411,483 172,973
Gain on sale of capital assets - - - - -
Insurance recoveries - - - - -
Transfers - - - - (550,980)
Extraordinary gain/(loss) on dissolution of RDA 36,597,998 - - - - Total governmental activities 79,055,762 35,249,507 36,920,409 38,300,319 39,831,782 Business-type activities:

Investment income (41,017) 11,358 248 681 -
Other - - - - -
Transfers - - - - 550,980
Gain on sale of capital assets - 69,600 - - -
Total business-type activities (41,017) 80,958 248 681 550,980 Total primary government 79,014,745 35,330,465 36,920,657 38,301,000 40,382,762 Changes in Net Position
Governmental activities 46,274,091 (5,405,442) 7,935,147 8,732,385 8,013,406 Business-type activities (774,237) (805,486) (507,250) (194,420) 679,177 Total primary government $ 45,499,854 $ (6,210,928) $ 7,427,897 $ 8,537,965 $ 8,692,583 Note: * In fiscal year 2017-2018 the City began reporting library services separarately from General Govenrment.

Source: City of Yorba Linda, Finance Department
Source: City of Yorba Linda, Finance Department.
119

CITY OF YORBA LINDA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2017 2018 2019 2020 2021
Fiscal Year
General Revenues and Other Changes in Net Position
Governmental activities:

Property taxes 23,301,893 $ 24,724,246 $ 26,867,452 $ 27,909,436 $ 29,540,612 $ Sales taxes 7,666,640 7,426,486 7,461,391 7,531,434 7,595,867 Franchise taxes 1,949,679 2,101,241 2,093,989 2,102,927 2,172,656 Transient occupancy taxes 482,652 487,217 498,253 390,641 311,017 Business licenses taxes 418,008 385,676 416,275 518,592 487,243 Other taxes 7,340,671 8,392,701 7,601,071 7,542,323 8,010,697 Motor vehicle in lieu, unrestricted 30,300 35,736 33,178 54,378 50,350 Investment income 562,730 5,448,994 3,414,409 3,799,085 718,564 Other 394,295 880,542 511,547 252,809 267,470
Gain on sale of capital assets 294,375 14,257 10,759 3,106,643 3,363,548 Insurance recoveries - - - - -
Transfers (12,248) - - (20,771,645) -
Extraordinary gain/(loss) on dissolution of RDA - - - - - Total governmental activities 42,428,995 49,897,096 48,908,324 32,436,623 52,518,024 Business-type activities:

Investment income - - - - 43,292
Other - - - - -
Transfers 12,248 - - 20,771,645 -
Gain on sale of capital assets - 4,065 - - 9,301
Total business-type activities 12,248 4,065 - 20,771,645 52,593 Total primary government 42,441,243 49,901,161 48,908,324 53,208,268 52,570,617 Changes in Net Position
Governmental activities 1,584,549 8,265,798 13,580,658 (7,558,821) 15,237,139 Business-type activities (260,416) (274,737) (672,739) 19,928,601 (116,471) Total primary government 1,324,133 $ 7,991,061 $ 12,907,919 $ 12,369,780 $ 15,120,668 $ Note: * In fiscal year 2017-2018 the City began reporting library services separarately from General Govenrment.

Source: City of Yorba Linda, Finance Department
Source: City of Yorba Linda, Finance Department.
120

CITY OF YORBA LINDA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2012 2013 2014 2015 2016
General Fund
Nonspendable $ 4,769,965 $ 11,616,699 $ 25,609,575 $ 25,879,553 $ 25,615,978 Committed - - - 23,125,506 23,143,531
Restricted - - 7,500 5,352 -
Assigned - - - 3,750,035 2,810,864
Unassigned 44,672,686 39,220,264 27,434,921 2,987,075 4,694,175 Total General Fund 49,442,651 50,836,963 53,051,996 55,747,521 56,264,548 All Other Governmental Funds
Nonspendable 38,867,893 3,831,706 3,821,809 2,164 465
Restricted 20,858,892 57,887,165 61,518,726 78,712,066 83,854,496 Assigned 8,285,094 7,624,257 7,739,067 - -
Unassigned (131,260) (426,175) (413,540) (489,090) (1,988,163) Total All Other Governmental Funds 67,880,619 68,916,953 72,666,062 78,225,140 81,866,798 Total All Governmental Funds $ 117,323,270 $ 119,753,916 $ 125,718,058 $ 133,972,661 $ 138,131,346 Note: Certain classifications of 2015 fund balances have been reclassified to conform to the current year's presentation.

Specifically, in the 2015 financial statements General Fund amounts were not shown as assigned and committed as they are in 2016 and restricted amounts in other Governmental Funds were shown as assigned.

Source: City of Yorba Linda, Finance Department
Fiscal Year
Source: City of Yorba Linda, Finance Department.
121

CITY OF YORBA LINDA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2017 2018 2019 2020 2021
General Fund
Nonspendable $ 25,360,804 $ 25,134,611 $ 24,183,522 $ 2,850,846 $ 627,888 Committed 23,096,672 18,554,579 23,252,150 27,742,190 31,713,494 Restricted - - - - -
Assigned 6,026,646 3,198,889 2,115,847 2,208,551 1,102,561 Unassigned 3,952,237 3,936,830 4,953,048 3,755,960 3,736,844 Total General Fund 58,436,359 50,824,909 54,504,567 36,557,547 37,180,787 All Other Governmental Funds
Nonspendable 1,304 20,567 34,219 4,702 4,611
Restricted 87,562,146 89,319,318 86,530,414 68,696,921 87,730,127 Assigned - - - - -
Unassigned (849,737) (794,022) (179,022) (725,130) (799,966) Total All Other Governmental Funds 86,713,713 88,545,863 86,385,611 67,976,493 86,934,772 Total All Governmental Funds $ 145,150,072 $ 139,370,772 $ 140,890,178 $ 104,534,040 $ 124,115,559 Note: Certain classifications of 2015 fund balances have been reclassified to conform to the current year's presentation.

Specifically, in the 2015 financial statements General Fund amounts were not shown as assigned and committed as they are in 2016 and restricted amounts in other Governmental Funds were shown as assigned.

Source: City of Yorba Linda, Finance Department
Fiscal Year
Source: City of Yorba Linda, Finance Department.
122

CITY OF YORBA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2012 2013 2014 2015 2016
Revenues
Taxes $ 44,914,309 $ 34,290,577 $ 35,274,571 $ 37,304,207 $ 39,622,621 Licenses and permits 1,185,206 1,944,412 1,794,234 1,822,533 1,681,175 Intergovernmental 4,108,624 3,919,378 4,882,336 3,877,534 3,550,775 Charges for services 3,811,323 3,148,441 3,202,764 3,724,560 3,636,143 Investment Income 1,529,085 (125,819) 699,314 525,717 476,108 Fines and forfeitures 272,132 217,395 186,542 209,420 191,903 Contributions 2,436,444 450 7,149 2,281 851
Developer Participation 201,519 197,300 245,242 2,025,694 2,278,589 Gain on sale of City property - - - - -
Miscellaneous 295,440 1,180,278 709,005 193,644 113,587 Total Revenues 58,754,082 44,772,412 47,001,157 49,685,590 51,551,752 Expenditures
Current:

General government 9,068,962 8,260,092 8,021,451 8,385,012 8,597,028 Public safety 11,588,080 10,421,130 9,351,367 9,535,298 10,111,264 Community Development 2,359,319 2,776,455 3,039,321 3,178,940 3,116,057 Parks and recreations 5,103,391 5,191,554 5,658,851 5,664,224 5,603,750 Library - - - - -
Public works 10,881,079 10,492,797 11,235,425 10,646,686 10,719,703 Capital outlay 7,695,807 6,399,930 10,447,448 6,829,408 10,497,334 Debt Service:

Principal retirement 2,785,000 - - - -
Interest and fiscal charges 3,941,648 - - - -
Bond issuance costs - - - - -
Pass through agreements 4,223,858 - - - -
Total Expenditures 57,647,144 43,541,958 47,753,863 44,239,568 48,645,136 Excess of revenues over/(under) expenditures 1,106,938 1,230,454 (752,706) 5,446,022 2,906,616 Other Financing Sources (Uses)
Transfers in 6,390,944 7,296,303 7,963,808 7,508,620 11,159,224 Transfers out (6,390,944) (7,296,303) (7,963,808) (7,508,620) (11,710,204) Long term debt issued 2,660,853 - - - -
Proceeds from sale of capital asset - - - - -
Insurance recoveries - - - - -
Bond discount - - - - -
Contributions to Successor Agency - (679,782) - - -
Contributions from Successor Agency - 1,879,974 6,716,848 3,013,793 1,386,056 Total other financing sources (uses) 2,660,853 1,200,192 6,716,848 3,013,793 835,076 Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 17) (58,866,617) - - - -
Net change in fund balances $ (55,098,826) $ 2,430,646 $ 5,964,142 $ 8,459,815 $ 3,741,692 Debt service as a percentage of noncapital expenditures 13.5% 0.0% 0.0% 0.0% 0.0% Fiscal Year
Note: * In fiscal year 2017-2018 the City began reporting library services separately from General Government. In addition, debt service and related expenditures are reported in the library function on the basic financial statements.

Source: City of Yorba Linda, Finance Department.
123

CITY OF YORBA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2017 2018 2019 2020 2021
Revenues
Taxes 41,311,999 $ 43,517,567 $ 44,938,431 $ 45,995,354 $ 47,277,203 $ Licenses and permits 1,906,900 1,277,319 1,758,173 1,758,957 1,905,891 Intergovernmental 4,911,723 5,054,524 5,847,394 7,793,872 6,441,439 Charges for services 3,670,482 3,783,290 3,829,460 3,149,392 3,178,690 Use of money and property 561,578 5,448,994 3,414,409 3,799,085 718,569 Fines and forfeitures 193,873 172,153 158,529 136,271 63,000 Contributions - - - - -
Developer Participation 1,284,622 1,336,048 3,794,795 2,916,798 448,537 Gain on sale of City property 294,375 14,257 10,759 3,106,643 3,363,549 Miscellaneous 314,259 880,542 511,547 252,809 1,167,358 Total Revenues 54,449,811 61,484,694 64,263,497 68,909,181 64,564,236 Expenditures
Current:

General government 9,608,392 7,412,889 7,556,660 7,382,901 9,918,063 Public safety 10,665,634 11,601,058 11,774,157 12,451,068 12,584,332 Community Development 2,932,425 9,004,086 3,027,458 4,923,127 3,355,451 Parks and recreations 6,216,676 6,098,032 6,652,263 8,447,644 6,317,469 Library - 3,967,009 4,523,472 4,291,564 5,638,179
Public works 11,986,129 11,583,370 11,536,226 12,113,687 13,327,507 Capital outlay 10,776,488 17,803,173 14,937,875 36,668,311 20,468,213 Debt Service:

Principal retirement - - - 490,000 -
Interest and fiscal charges - - - 648,888 108,271
Bond issuance costs - - 321,311 105,052 -
Pass through agreements - - - - -
Total Expenditures 52,185,744 67,469,617 60,329,422 87,522,242 71,717,485 Excess of revenues over/(under) expenditures 2,264,067 (5,984,923) 3,934,075 (18,613,061) (7,153,249) Other Financing Sources (Uses)
Transfers in 9,035,390 17,821,152 20,503,308 24,009,934 18,252,929 Transfers out (9,047,638) (17,821,152) (20,503,308) (44,781,579) (18,252,929) Long term debt issued - - 15,892,798 7,611,000 -
Proceeds from sale of capital asset - - - - -
Insurance recoveries - - - - -
Bond discount - - - - -
Contributions to Successor Agency - - - - -
Contributions from Successor Agency 3,143,678 205,623 3,756,523 87,345 - Total other financing sources (uses) 3,131,430 205,623 19,649,321 (13,073,300) - Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 17) - - - - -
Net change in fund balances 5,395,497 $ (5,779,300) $ 23,583,396 $ (31,686,361) $ (7,153,249) $ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.7% 2.2% 0.2% Fiscal Year
Note: * In fiscal year 2017-2018 the City began reporting library services separately from General Government. In addition, debt service and related expenditures are reported in the library function on the basic financial statements.

Source: City of Yorba Linda, Finance Department.
124

CITY OF YORBA LINDA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year
Ended
June 30
2012 $ 11,099,352,245 $ 163,615,245 $ (294,418,477) $ 10,968,549,013 2013 11,331,341,242 153,522,286 (300,169,006) 11,184,694,522 2014 11,690,283,468 152,053,662 (307,993,529) 11,534,343,601 2015 12,492,822,864 153,579,513 (309,102,030) 12,646,402,377 2016 13,334,274,219 147,399,256 (350,162,998) 13,481,673,475 2017 13,959,347,366 137,076,955 (210,599,989) 14,096,424,321 2018 14,716,674,476 148,335,423 (220,753,799) 14,865,009,899 2019 15,471,407,750 151,643,596 (211,377,405) 15,623,051,346 2020 16,112,175,947 181,515,582 (251,855,293) 16,293,691,529 2021 16,775,906,874 167,238,127 (269,590,593) 16,943,145,001 (2) Total includes Nonunitary Taxable Assessed Values.

Note:

Source: HdL Coren and Cone, Orange County Assessor Combined Tax Rolls In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year the assessed value of property may be increased by an inflation factor (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
(1) Exemptions are netted against the individual property categories.

Secured Unsecured Exemptions (1) Value (2)
Less: Assessed
Taxable
125

CITY OF YORBA LINDA
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Brea Olinda Unified 0.02367 0.02365 0.02470 0.02528 0.02292 0.02298 0.02325 0.02370 0.02291 0.02489 Metropolitan Water District 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 N. OC Community College 2002 Bond Series #2003B 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00001 0.00000 0.00000 N. Orange County Community College 0.01742 0.01902 0.01704 0.01704 0.03043 0.02885 0.02927 0.02828 0.02409 0.03198 Orange USD Series 2018 2016 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02685 0.02288 0.01664 Placentia Yorba Linda Unified 0.05846 0.06203 0.06525 0.05822 0.05665 0.05475 0.05529 0.05261 0.04848 0.06032 Rancho Santiago Community College 0.03146 0.03241 0.03334 0.02878 0.03063 0.02999 0.03013 0.02875 0.02818 0.02768 Total Direct & Overlapping (2) Tax Rates 1.13471 1.14061 1.14383 1.13282 1.14413 1.14007 1.14144 1.16370 1.15004 1.16501 City's share of 1% Levy per Prop 13 (3)
City 0.12480 0.12480 0.12480 0.12480 0.12480 0.12480 0.10625 0.10625 0.10625 0.10625 Library 0.05525 0.05525 0.05525 0.05525 0.05525 0.05525 0.05570 0.05570 0.05570 0.05570 Total City Direct Rate 0.18005 0.18005 0.18005 0.18005 0.18005 0.18005 0.16195 0.16195 0.16195 0.16195 Redevelopement Rate (4) 1.00370
Total Direct Rate (5) 0.25500 0.25254 0.13436 0.13453 0.13468 0.13507 0.13557 0.13552 0.13575 0.13628 (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 owner (3) City's Share of 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. ERAF general fund tax shifts may not be included in tax ratio figures.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statue. RDA direct and overlapping rates are applied only to the 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 to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions are general fund revenue.

Source: HdL Coren and Cone, Orange County Assessor 2006/2007 - 2015/2016 Tax Rate Table (1) In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year the assessed value of property may be increased by an inflation factor (limited to a maximum increase of 2%).

With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of 126

CITY OF YORBA LINDA
Principal Property Tax Payers
Current Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Value Value Value
RRE Yorba Linda Holdings LLC $ 129,379,499 0.764% $ 0.000% - Savi Ranch Property Holdings LLC 81,600,000 0.482% 81,626,012 0.725% YL Pines LLC 35,317,239 0.208% 23,162,861 0.206%
Packing House Yorba Linda LLC 35,006,161 0.207% - 0.000% Savi Ranch Group LLC 34,338,960 0.203% - 0.000%
Zelman Yorba Linda LLC 32,332,593 0.191% - 0.000%
San Jose Central Travel Inc. 27,588,348 0.163% - 0.000% Toll West Coast LLC - 0.000% - 0.000%
Eastlake Commercial 2007 LLC 26,944,905 0.159% 23,159,899 0.206% St. Joseph Heritage Healthcare 25,594,310 0.151% - 0.000% Trico-Savi Business Park LP 25,055,229 0.148% 21,346,625 0.190% Station Land Investors LLc - 0.000% 21,009,340 0.187%
Shapell Industries Inc. - 0.000% 30,902,792 0.274%
Savi Technology Center LP - 0.000% - 0.000%
LMI Riverbend LLC - 0.000% 62,062,937 0.551%
Johnson Tractor Company - 0.000% 27,968,769 0.248%
Bridgemark Corporation - 0.000% 25,652,520 0.228%
Nobel Biocare USA LLC - 0.000% 25,223,630 0.22%
Top Ten Totals $ 453,157,244 2.675% $ 342,115,385 3.038% City Totals $ 16,943,145,001 $ 11,262,967,490
Source: HdL Coren and Cone, Orange County Assessor 2011/12 and 2020/21 Tax Rolls 2021 2012
127

CITY OF YORBA LINDA
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30
2012 25,562,306 $ 24,512,406 $ 95.893% 326,838 $ 24,839,244 $ 97.171% 2013 25,512,395 24,587,570 96.375% 324,932 24,912,502 97.649% 2014 26,114,981 25,628,853 98.139% 242,572 25,871,425 99.067% 2015 27,573,088 27,075,082 98.194% 195,477 27,270,559 98.903% 2016 27,926,587 27,285,154 97.703% 201,624 27,486,778 98.425% 2017 28,894,519 28,539,922 98.773% 170,053 28,709,974 99.361% 2018 31,244,974 30,898,210 98.890% 116,309 31,014,519 99.262% 2019 32,504,590 32,189,975 99.032% 124,953 32,314,928 99.417% 2020 33,288,749 32,965,561 99.029% 135,497 33,101,058 99.436% 2021 34,706,969 34,431,243 99.206% 236,450 34,667,693 99.887% (1) Total amount of delinquent taxes collected in each fiscal year; information regarding levy year to which delinquent tax collections pertain is not provided by the Orange County Auditor- Controller.

Source: Orange County Auditor- Controller
Fiscal Year of Levy Collections in
Amount of Levy
Total Collections to Date
Percent
Years (1) Amount of Levy
Subsequent
Collected within the
Taxes Levied
for the Percent
Fiscal Year
128

CITY OF YORBA LINDA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year Tax Lease Due to Golf Course Total Percentage Ended Allocation Revenue Other Revenue Capital Primary of Personal Debt Per June 30 Bonds Financings Governments Bonds Leases Government (1) Income Capita 2012 $ - $ - $ - $ 16,090,000 311,443$ $ 16,401,443 0.52% 247$ 2013 - - - 15,635,000 229,434 15,864,434 0.50% 236.54
2014 - - - - 146,885 146,885 0.00% 2.19
2015 - - - - - - n/a n/a
2016 - - - - - - n/a n/a
2017 - - - - - - n/a n/a
2018 - - - - - - n/a n/a
2019 - 15,857,373 (2) - - - 15,857,373 0.46% 230.80
2020 - 22,914,112 (3) - - - 22,914,112 0.62% 333.78
2021 - 22,463,372 - - - 22,463,372 0.60% 331.09
Note: (1) Details regarding the City of Yorba Linda's outstanding debt can be found in the notes to the financial Statements.
(2) In December 2018, the Yorba Linda Municipal Financing Authority issued $14,645,000 of lease revenue bonds to fund a portion of the construction costs of the new Yorba Linda Public Library facility. (3) In June 2020, the Yorba Linda Municipal Financing Authority issued $7,611,000 through a private placement lease financing with Sterling National Bank to fund a portion of the construction costs of the new Cultural Arts Center facility.

Source: City of Yorba Linda Finance Department
HdL Coren and Cone
Governmental Activities Business-type Activities
129

CITY OF YORBA LINDA
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Certificates Lease Percent of
Ended of Revenue Assessed Per
June 30 Participation Financing (2) (3) Total Value (4) Capita 2012 $ 16,090,000 $ - $ 16,090,000 0.15% 245
2013 15,635,000 - 15,635,000 0.14% 235
2014 - - - - -
2015 - - - - -
2016 - - - - -
2017 - - - - -
2018 - - - - -
2019 - 15,857,373 15,857,373 0.10% 231
2020 - 22,914,112 22,914,112 0.14% 334
2021 - 22,463,372 22,463,372 0.13% 331
Note: (1) Details regarding the City of Yorba Linda's outstanding debt can be found in the notes to the financial statements.
(2) In December 2018, the Yorba Linda Municipal Financing Authority issued $14,645,000 of lease revenue bonds to fund a portion of the construction costs of the new Yorba Linda Public Library facility.
(3) In June 2020, the Yorba Linda Municipal Financing Authority issued $7,611,000 through a private placement lease financing with Sterling National Bank to fund a portion of the construction costs of the new Cultural Arts Center facility.
(4) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Source: City of Yorba Linda Finance Department
130

CITY OF YORBA LINDA
Direct and Overlapping Debt
As of June 30, 2018
2020-2021 Taxable Assessed Valuation: $14,031,549,170
City Assessed Valuation $ 16,943,145,001
Redevelopment Agency Incremental Valuation (2,911,595,831) $ 14,031,549,170
Estimated
Share of
Percent Outstanding Overlapping
Applicable (1) Debt 6/30/2021 Debt
OVERLAPPING DEBT:

N O C COMMUNITY COLLEGE 2002 BOND SERIES #2003B 11.617% $ 32,652,160 $ 3,793,289 BREA OLINDA UNIFIED-1999 BOND SR 2003A 0.098% 4,799,592 4,709 RANCHO SANTIAGO CCD 2005+2011 REFUNDING BD 0.474% 19,460,000 92,245 PLAC-YORBA LINDA U 2002 BOND #2002A 49.516% 6,640,165 3,287,913 PLAC-YORBA LINDA U 2002 BOND #2004B 49.516% 964,744 477,698 BREA OLINDA USD-1999, 2010 REFUNDING 0.098% 1,689,437 1,658 RANCHO SANTIAGO CCD 2002 SR 2005B 0.474% 39,176,791 185,707 PLAC-YORBA LINDA U 2002 BOND #2005C 49.516% 779,610 386,028 N O C COMM COLL 2002 BOND 2005 REFUNDING 11.617% 41,788,006 4,854,625 RANCHO SANTIAGO CCD 2002 BOND SR 2006C 0.474% 53,874,329 255,377 PLAC-YORBA LINDA U 2008 BOND, SR A 49.516% 41,890,000 20,742,054 PLAC-YORBA LINDA U 2008 BOND, SR B & C 49.516% 130,139,200 64,439,108 PLAC-YORBA LINDA USD 2008 BOND, SR Q 49.516% 25,000,000 12,378,881 PLAC-YORBA LINDA U 2008 BOND, SR D 49.516% 22,128,918 10,957,250 PLAC-YORBA LINDA U 2008 BOND, SR E 49.516% 12,725,000 6,300,851 RANCHO SANTIAGO CCD 2012 GO REF BOND 0.474% 103,365 489,975 N O C COMM COLL 2014 BOND SR 2016A 11.617% 35,650,896 4,141,661 ORANGE USD SR 2018 EL 2016 1.031% 177,865,000 1,833,502 N O C COMM COLL 2014 BOND SR B 11.617% 129,733,719 15,071,516 METROPOLITAN WATER DISTRICT 2.585% 5,385,044 139,179
TOTAL OVERLAPPING DEBT $ 149,833,226
CITY DIRECT DEBT:

CITY OF YORBA LINDA LEASE REVENUE FINANCINGS 100% 22,914,112 22,914,112 TOTAL DIRECT AND OVERLAPPING DEBT $ 172,747,338
Debt To Assessed Valuation Ratios: Direct Debt 0.00%
Overlapping Debt 1.07%
Total Debt 1.07%
(1) this fund is a portion of a larger agency, and is responsible for debt in the areas outside the city. (2)
Source: California Municipal Statistics, Inc.

Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. 131

CITY OF YORBA LINDA
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Calculation for the Current Year
Assessed value $ 14,865,009,899
Conversion percentage 25%
Adjusted assessed value 3,716,252,475
Debt limit (15% of adjusted assessed value) 557,437,871 Debt applicable to limit -
Legal debt margin - Current Year $ 557,437,871
Fiscal
Year
2012 411,320,588 $ $ 16,090,000 $ 395,230,588 3.9%
2013 419,426,045 15,635,000 403,791,045 3.7%
2014 432,537,885 - 432,537,885 0.0%
2015 474,240,089 - 474,240,089 0.0%
2016 505,562,755 - 505,562,755 0.0%
2017 528,615,912 - 528,615,912 0.0%
2018 557,437,871 - 557,437,871 0.0%
2019 585,864,425 - 585,864,425 0.0%
2020 611,013,432 - 611,013,432 0.0%
2021 635,367,938 - 635,367,938 0.0%
Source: City of Yorba Linda Finance Department
Limit to Limit
Debt as
Percentage
Margin of Limit
Debt
Debt
Applicable Debt
Legal
132

CITY OF YORBA LINDA
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal Year Less Net
Ended Golf Course Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2012 5,869,100 $ $ 5,136,187 $ 732,913 $ 440,000 $ 757,356 0.612 2013 5,670,123 4,847,456 822,667 455,000 742,354 0.687
2014 - - - - - -
2015 - - - - - -
2016 - - - - - -
2017 - - - - - -
2018 - - - - - -
2019 - - - - - -
2020 - - - - - -
2021 - - - $ - - -
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2012 $ - $ - $ - -
2013 - - - -
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
Notes: (1) The Golf Course Revenue Bonds were defeased during fiscal year 2013. (2) The tax Allocation Bonds were transferred to the Successor Agency due to the dissolution of the Redevelopment Agency during fiscal year 2011.

Source: City of Yorba Linda Finance Department
GOLF COUSE REVENUE BONDS (1)
Debt Service
TAX ALLOCATION BONDS (2)
Debt Service
133

CITY OF YORBA LINDA
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capita
Calendar Income Personal Unemployment Median % of Pop 25+ with % of Pop 25+ with Year Population (1,000s) Income Rate Age High School Degree Bachelor's Degree 2011 65,777 3,107,963$ 47,250$ 5.80% 41.5 95.2% 46.3%
2012 66,437 3,146,124 47,355 3.70% 41.3 95.1% 46.9%
2013 67,069 3,204,691 47,782 3.30% 41.4 95.3% 47.3%
2014 67,055 3,158,626 47,105 4.80% 41.8 95.6% 48.6%
2015 67,637 3,174,294 46,931 3.90% 41.8 95.5% 49.4%
2016 67,890 3,213,873 47,339 3.50% 42.8 95.5% 51.4%
2017 69,121 3,250,126 47,021 3.30% 42.9 95.8% 52.0%
2018 68,706 3,453,929 50,271 2.70% 43.3 95.4% 53.2%
2019 68,650 3,668,872 53,443 2.60% 43.5 95.5% 53.4%
2020 67,846 3,772,935 55,610 7.20% 44.2 95.5% 54.1%
Source: HdL Coren and Cone
134

CITY OF YORBA LINDA
Principal Employers
Current Year and Three Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employees Employment
Nobel Biocare U S A, L L C 329 3.61% 269 3.67%
Costco Wholesale Corporation # 445 321 3.53% 293 4.00%
Brookdale Yorba Linda 219 2.41% 188 2.57%
Serento Rosa 200 2.20% - 0.00%
Jondo Ltd. 178 1.95% - 0.00%
Cobra Engineering, Inc 145 1.59% 71 0.97%
Office Solutions Business 140 1.54% 98 1.34%
Euroline Steel Windows 138 1.52% - 0.00%
White House Catering Inc 130 1.43% 75 1.02%
Coldwell Banker 118 1.30% 118 1.61%
Robert Moreno Insurance Services 115 1.26% 115 1.57%
Chick-Fil-A At Yorba Linda Fsr 100 1.10% - 0.00%
Vons Grocery Co #3069 100 1.10% 86 1.17%
Sprouts Farmers Market 99 1.09% 78 1.06%
Bristol Farms 87 0.96% - 0.00%
2,419 26.57% 1,391 18.99%
Note: The City of Yorba Linda issued financial statements, but not a ACFR, prior to 2016. Data is therefore not available for this table prior to 2016.

Source: City of Yorba Linda, Finance Department
2021 2016
135

CITY OF YORBA LINDA
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government
City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Administration 6.60 5.20 6.00 8.00 9.00 9.00 9.96 9.48 10.25 10.73 City Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.48 3.48 Finance 6.00 6.00 6.00 6.00 6.00 6.00 6.50 6.75 6.48 6.48 Community Development
Planning 5.50 5.20 6.20 6.20 6.20 6.20 6.98 6.98 6.50 6.50 Building 8.50 8.70 8.70 8.70 8.70 8.70 10.30 10.30 11.30 11.30 Community Preservation 3.15 3.25 3.25 3.25 3.25 3.25 3.20 3.20 3.20 3.20 NPDES 0.30 0.30 0.30 0.30 0.30 0.30 - - - -
Public Works
Administration/Engineering 6.65 6.85 6.90 6.90 6.65 6.65 6.75 7.71 7.75 7.75 Maintenance 9.04 9.04 10.04 10.04 10.04 10.04 10.04 10.04 11.04 11.04 NPDES 0.60 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.35 1.35 Landscape Assessment Dist. 3.71 3.71 3.71 3.71 3.96 3.96 3.96 3.96 5.82 5.82 Parks & Recreation
Administration 2.45 2.10 2.45 2.95 2.95 2.95 2.80 2.80 2.48 2.48 Recreation 29.91 29.27 29.91 29.91 29.91 29.91 32.51 32.51 32.95 36.94 Parks Maintenance 8.85 8.85 8.85 8.85 8.85 8.85 9.05 9.05 10.05 10.05 Facilities Maintenance 2.20 2.20 2.20 2.20 2.20 2.20 2.40 2.40 2.75 3.75 Library 33.76 31.55 31.55 31.55 31.55 31.55 31.32 31.32 31.81 33.15 Total 135.22 131.47 135.31 137.81 138.81 138.81 145.02 145.75 152.21 159.02 Source: City of Yorba Linda
136

CITY OF YORBA LINDA
Operating Indicators by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Parks & Recreation
Number of participants 14,207 13,705 13,152 11,406 9,356 11,331 10,162 10,395 6,183 6,116 Number of facility rentals 2,204 1,799 1,833 1,722 1,958 1,973 1,826 1,492 902 329 Teams in league events 257 206 155 227 175 148 144 137 148 145 Police (1)
Calls for Service n/a 10,057 17,452 18,497 18,162 19,922 22,125 20,158 18,666 17,766 Arrests n/a 215 378 435 458 717 442 470 902 629
Moving Citations n/a 1,325 2,220 2,507 2,808 1,910 1,728 1,776 1,542 1,465 Crime reports n/a 1,884 2,344 2,408 2,705 2,541 2,640 2,715 2,523 233 Parking citations n/a 88 277 425 419 720 1,001 842 566 264 Public Works (2)
Street resurfacing (# streets) 87 - 211 84 173 173 182 151 139 292 Library
Attendance in Library (door count) 337,211 338,579 334,942 323,415 328,646 328,646 276,051 185,038 83,346 284,628 Number of items checked out 874,333 891,041 917,134 870,029 881,283 881,283 938,109 1,044,225 799,631 620,161 Number of programs 737 714 601 666 721 721 961 930 619 89 Golf Course
Number of rounds played 56,352 59,096 57,476 55,755 55,483 55,483 60,355 59,237 52,804 67,251 Source: City of Yorba Linda
137

CITY OF YORBA LINDA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Parks & Recreation
Municipal Parks 27 29 29 29 30 32 33 33 33 33
Gyms 22222222 2 2
Community Center 11111111 1 1
Horse Arena 11111111 1 1
Municipal Golf Course 11111111 1 1
Arts Center 1
Museum 11111111 1 1
Library
Library Facility 11111111 1 1
Police
Stations 11111111 1 1
Public Works
Streets (centerline miles) 213 213 213 213 211 211 217 217 215.5 215.5 Street Lights n/a n/a n/a n/a 5,756 6,096 6,139 6,139 6,139 6,139 Traffic Signals 58 58 61 61 61 64 62 64 65 65
Source: City of Yorba Linda, Finance Department
138

www.mgocpa.com
Macias Gini & O’Connell LLP
111 Pacifica, Suite 300
Irvine, CA 92618
1 January 31, 2022
To the Finance Committee
City of Yorba Linda, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Yorba Linda, California (City) as of and for the year ended June 30, 2021, and have issued our report thereon dated January 31, 2022.

Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 29, 2021, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you in our letter dated June 29, 2021.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

2 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1.e to the financial statements, the City implemented Governmental Accounting Standard Board (GASB) Statement No. 84, Fiduciary Activities, Statement No. 90, Majority Equity Interests – an amendment of GASB Statement No. 14 and No. 61, Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 for the year ended June 30, 2021. There is no significant impact to the City’s basic financial statements due to the implementation of GASB Nos. 90 and 97. As a result of implementing GASB No. 84, the City presented custodial funds to account for assets held by the City as an agent for others, including special deposits. The City also early implemented GASB Statement No. 98, The Annual Comprehensive Financial Report for the year ended June 30, 2021, as described in Note 1(e).

There is no significant impact to the City’s basic financial statements due to the implementation of this Statement other than to change the name and acronym of the document. There have been no changes in other significant accounting policies or their application during for the year ended June 30, 2021. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on 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 markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are:
• Management’s estimates of developer loan receivables under Owner Participation Agreements (OPA) are based on historical data and the terms of each respective OPA. • Valuations of actuarially determined contributions, deferred outflows of resources, deferred inflows of resources, and net OPEB liability and net OPEB expense for the City are based on actuarial calculations, which incorporate actuarial methods and assumptions adopted by the City Council.

• Valuations of actuarially determined contributions, deferred outflows of resources, deferred inflows of resources, and net pension liability and pension expense for the City’s Miscellaneous Plan are based on actuarial calculations performed by the California Public Employees Retirement System (CalPERS).

3 • Useful lives for depreciable capital assets and infrastructure were determined by management based on the nature of the assets. The City uses the straight-line method of depreciation for all depreciable capital assets, excluding the street pavement system within the City’s infrastructure assets. The City also utilizes the modified approach for reporting the street pavement system that is recorded within the City’s infrastructure assets, which includes estimates related to the conditional level of the assets.
• Management’s estimates of the fair value of investments, except for money market mutual funds, the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP), are based on quoted market prices, bid evaluation, or matrix pricing techniques. Money market mutual funds are valued at net asset value (NAV) based on amortized cost. The City’s investment in LAIF and CAMP are reported based upon the application of a fair value factor applied to each one dollar share invested.

We evaluated the key factors and assumptions used to develop these accounting estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.
• The long-term receivables disclosures in Note 5 to the basic financial statements related to the Owner Participation Agreements with the City.
• The pension plan disclosures in Note 9 to the basic financial statements related to the pension plan’s net pension liability, related deferred outflows and inflows of resources, and pension expense.
• The OPEB disclosures in Note 10 to the basic financial statements related to the OPEB plan’s net OPEB liability for retiree healthcare benefits, related deferred outflows and inflows of resources, and OPEB expense.
• The commitments and contingencies that will impact future resources of the City as disclosed in Note 12 to the basic financial statements.
• The impact of COVID-19 pandemic to the City as disclosed in Note 14 to the basic financial statements.

Difficulties Encountered During the Audit
We encountered no difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the auit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has posted all adjustments identified during the audit. In addition, there were no uncorrected misstatements noted as a result of the audit procedures.

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

Representations Requested from Management
We have requested certain written representations from management dated January 31, 2022.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information in Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information in documents (i.e., bond official statements) containing the City’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, if engaged by the City, in accordance with such professional standards we would read the information and consider whether such information, or the manner of its presentation, was materially inconsistent with its presentation of the basic financial statements.

We applied certain limited procedures to the management’s discussion and analysis, budgetary comparison information, Infrastructure Assets Reported Using the Modified Approach, Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years, Schedule of Pension Contributions – Last 10 Years, Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years, and Schedule of OPEB Contributions – Last 10 Years, which are required supplementary information (RSI) that supplement 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 budgetary comparison schedule – Capital Improvements Capital Projects Fund and the combining and individual non-major fund financial statements and schedules, 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

5 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 introduction section and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

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

Very truly yours,
Irvine, California

CITY OF YORBA LINDA, CALIFORNIA
Independent Accountant’s Report on
Applying Agreed-Upon Procedures Related to the
Article XIII-B Appropriations Limit
For the Year Ended June 30, 2021

CITY OF YORBA LINDA, CALIFORNIA
Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit
Table of Contents
Page
Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit .................................................................................... 1 Appropriations Limit Calculation ............................................................................................................... 3

www.mgocpa.com
Macias Gini & O’Connell LLP
111 Pacifica, Suite 300
Irvine, CA 92618
1 Independent Accountant’s Report on
Applying Agreed-Upon Procedures Related
to the Article XIII-B Appropriations Limit
To the Honorable Mayor and Members of the City Council
City of Yorba Linda, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Yorba Linda, California (City) for the year ended June 30, 2021. The City’s management is responsible for the appropriations limit calculation for the year ended June 30, 2021.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in evaluating the appropriations limit calculation in accordance with the requirements of Section 1.5 of Article XIII-B of the California Constitution. The procedures are recommended by the California Committee on Municipal Accounting (CCMA), as presented in the CCMA publication titled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution. 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.

Our procedures performed and our findings were as follows:
1) We obtained the completed worksheet from management supporting the computation that establishes the City’s appropriations limit for the year ended June 30, 2021, and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by a resolution of the City Council. We also compared the population and inflation factors included in the aforementioned calculation to those that were selected by a recorded vote of the City Council.

Findings: No exceptions were found as a result of performing these procedures. 2) For the accompanying Appropriations Limit Worksheet, we added last year’s appropriation limit to the annual adjustment amount and compared the resulting amount to this year’s limit.

Findings: No exceptions were found as a result of performing these procedures. 3) We compared the current year information presented in the accompanying Appropriations Limit Worksheet to the supporting worksheets described in procedure No. 1 above.

Findings: We noted that the City inadvertently selected the wrong population factor for its Appropriations Limit calculation. The City selected the unincorporated area of Orange County population factor of 0.26 instead of the City’s population factor of 0.28. This resulted in the City understating its Appropriations Limit by $14,088 for fiscal year 2020/2021.

2 4) We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council.

Findings: No exceptions were found as a result of performing these 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, the objective of which would be the expression of an opinion or conclusion, respectively, on the appropriations limit calculation for the year ended June 30, 2021. 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. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution.

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 Mayor, City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Irvine, California
January 31, 2022

CITY OF YORBA LINDA, CALIFORNIA
Appropriations Limit Calculation
Year Ended June 30, 2021
Amount
A. Last year's limit $ 67,910,190
B. Adjustment factors:

1. Population change 1.00260000

2. Per capita change 1.03730000
Total adjustments [(B.1 x B.2)-1.0] 0.03999698
C. Annual adjustment 2,716,203
D. Other adjustments:

1. Lost responsibility (-) -

2. Transfer to private (-) -

3. Transfer to fees (-) -

4. Assumed responsibility (+) -
-
E. Total adjustments 2,716,203
F. Current year's limit $ 70,626,393
3

PARKS AND RECREATION DEPARTMENT
DATE: FEBRUARY 15, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE KUDRON, DIRECTOR OF PARKS AND RECREATION
SUBJECT: AUTHORIZATION TO BEGIN PREPARATIONS FOR THE 2022 JULY 4TH

FIREWORKS SHOW

RECOMMENDATION
It is recommended that the City Council direct staff to initiate planning efforts for the 2022 July 4th Fireworks Show and authorize staff to execute payment to Pyro Spectaculars, Inc. in an amount not-to-exceed $28,305.

BACKGROUND
Since 1989, the City of Yorba Linda has conducted the July 4th Spectacular on the day of the holiday. The festivities take place at Yorba Linda Middle School and Veterans Park and culminate with a fireworks display. Staff recommends contracting with Pyro Spectaculars because they are recognized as the premier fireworks company in the industry. The City of Yorba Linda has contracted with Pyro Spectaculars for all but one of the fireworks shows since the inception of this event.

DISCUSSION
Pyro Spectaculars, Inc. requires a partial payment to ensure we are placed on their busy July 4th calendar. A deposit in the amount of $14,153 and signed agreement is due by April

1. The City Manager is authorized in the City’s purchasing policy to execute the agreement; however, this event will take place in the next Fiscal Year.

FISCAL IMPACT
The total cost for this event is projected at $90,000 (based on previous expenses). This includes all program costs consisting of personnel, equipment, fireworks, stage, sound, lighting, and live entertainment. In previous years, City staff generated $20,000 in corporate sponsorship and donations to offset expenditures. Staff hopes to maintain or exceed those levels in 2022. Staff has requested funding in Fiscal Year 22/23 in account 1010410 433500 to cover the event costs.

AUTHORIZATION TO BEGIN PREPARATIONS FOR THE 2022 JULY 4TH FIREWORKS SHOW P a g e | 2

ALTERNATIVES
The alternative is for the City Council to not authorize staff to begin planning for the July 4th Fireworks Show, not approve payment to Pyro Spectacular, and direct staff to either cancel the event or develop an alternate plan to celebrate Independence Day.

ATTACHMENTS
Attachment A – Pyro Spectaculars, Inc. Production Agreement

ADMINISTRATION DEPARTMENT
DATE: FEBRUARY 15, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARK PULONE, CITY MANAGER
PREPARED BY: TODD LITFIN, CITY ATTORNEY
SUBJECT: REAUTHORIZATION OF TELECONFERENCED MEETINGS PURSUANT TO AB 361

RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2022-5787 reauthorizing teleconferenced meetings pursuant to the requirements of AB 361.

BACKGROUND
During the COVID-19 pandemic, the Governor issued Executive Order No. N-29-20, which suspended the Brown Act’s requirements for teleconferencing, so long as specified requirements relating to public participation in such meetings were satisfied. That executive order was recently rescinded. In its place, the State legislature and the governor have approved Assembly Bill 361 (AB 361). AB 361 modifies the teleconferencing requirements of the Brown Act to allow a legislative body to meet without granting public access to the locations where members of the body are teleconferencing, such as their private residences, or allowing public access to public facilities as long as the public may participate electronically/telephonically in real time during the meeting.

AB 361 imposes three primary requirements for virtual public meetings:
 A proclaimed state of emergency coupled with imposed or recommended social distancing measures, or a vote that as a result of the emergency, meeting in person would present imminent health or safety risks;  For meetings subsequent to the first AB 361 virtual meeting, certain enumerated findings authorizing teleconferenced meetings pursuant to AB 361; and
 Compliance with public notice and “real time” participation requirements either telephonically or via an internet based provider. Local agencies may not require that comments be submitted in advance, and no official action may occur if public

T E L E C O N F E R E N C E D M E E T I N G S P U R S U A N T T O A B 3 6 1 P a g e | 2
access to the virtual meeting is disrupted.

As to the current status of whether there is an “emergency”, on March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency in California due to the COVID-19 pandemic. The emergency is currently extended until March 31, 2022. Furthermore, effective December 15, 2021, the California Department of Public Health (CDPH) issued a requirement for masks to be worn in all indoor public settings, irrespective of vaccine status, until January 15, 2022. CDPH has extended this requirement to February 15, 2022 The current state of emergency authorizes local agencies to conduct meetings under AB 361 with the adoption of the attached resolution containing the findings required by AB 361.

In order to continue to conduct meetings pursuant to AB 361, the City has to readopt the findings every 30 days. The City initially adopted Resolution No. 2022-5779 on January 18, 2022 authorizing teleconferenced meetings pursuant to AB 361. The City reauthorized that determination on February 1, 2022, per Resolution No. 2022-5782. The currently proposed resolution is a reauthorization of the prior determination.

FISCAL IMPACT
Minimal costs pertaining to providing remote access to Councilmembers, City staff and the public.

ALTERNATIVES
Not approve Resolution No. 2022-5787 and either conduct meetings in person or pursuant to the normal teleconferencing requirements of the Brown Act.

ATTACHMENTS

1. Resolution No. 2022-5787

539/009410-1001
17488541.1 a02/10/22
RESOLUTION NO. 2022-5787

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

YORBA LINDA, CALIFORNIA, REAUTHORIZING AND

MAKING FINDINGS NECESSARY FOR REMOTE

PARTICIPATION IN PUBLIC MEETINGS OF THE CITY

COUNCIL AND COMMISSIONS OF THE CITY OF YORBA
LINDA, AS AUTHORIZED BY ASSEMBLY BILL 361
WHEREAS, the Ralph M. Brown Act (Brown Act) requires, with specified exceptions, that all meetings of the City Council of the City of Yorba Linda, and its subordinate legislative bodies (collectively, “Public Bodies”), be open and public and that all persons be permitted to attend and participate; and WHEREAS, the Brown Act allows for meetings to occur via teleconferencing subject to certain requirements, particularly that Public Bodies notice each teleconference location of each member that will be participating in the public meeting, that each teleconference location be accessible to the public, that members of the public be allowed to address the Public Body at each teleconference location, that the Public Body post an agenda at each teleconference location, and that at least a quorum of the Public Body participate from locations within the boundaries of the City; and WHEREAS, during the COVID-19 pandemic and pursuant to authority provided under the California Emergency Services Act, the Governor issued Executive Order No.

N-29-20, which suspended the Brown Act’s requirements for teleconferencing provided that notice and accessibility requirements were met, the public members were allowed to observe and address Public Bodies at their meetings, and that the Public Body had a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities; and
WHEREAS, Executive Order No. N-29-20 has been rescinded; and WHEREAS, on September 16, 2021 the Governor signed Assembly Bill 361 (AB 361) which establishes further refinements to the procedures that may be used by the City when allowing for remote participation in meetings of Public Bodies; and WHEREAS, AB 361 authorizes the City to use teleconferencing without complying with the teleconferencing requirements imposed by the Brown Act (prior to adoption of AB 361) when the City Council finds that the meeting will be held during a declared state of emergency and state or local health officials have imposed or recommended measures to promote social distancing (Remote Participation Findings); and WHEREAS, if the Remote Participation Findings are made, AB 361 requires that Public Bodies give notice of the meeting and post agendas, as described in AB 361, to allow members of the public to access the meeting and address the Public Body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or

RESOLUTION NO. 2022-5787
PAGE 2
539/009410-1001
17488541.1 a02/10/22 -2-
an internet-based service option, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the Public Body; and
WHEREAS, if the City exercises the option for remote participation under AB 361, it cannot require that public comments be submitted in advance of the meeting and body must provide an opportunity for the public to address Public Bodies and offer comment in real time; and
WHEREAS, when there is a continuing state of emergency and state or local officials have imposed or recommended measures to promote social distancing, AB 361 requires that the City Council make specified findings not later than 30 days after the first teleconferenced meeting pursuant to AB 361, and to make those findings every 30 days thereafter, in order to continue to meet under the abbreviated teleconferencing procedures specified therein; and
WHEREAS, on March 4, 2020, Governor Newsom declared a state of emergency pertaining to Covid and that state of emergency has been extended until at least March 31, 2022; and
WHEREAS, effective December 15, 2021, the California Department of Public Health (CDPH) issued a requirement for masks to be worn in all indoor public settings, irrespective of vaccine status, until January 15, 2022. CDPH has extended this requirement to February 15, 2022; and
WHEREAS, the City Council adopted Resolution No. 2022-5779 on January 18, 2002, as required by AB 361, reaffirmed the determination on February 1, 2022, pursuant to Resolution No. 2022-5782, and this current resolution reauthorizes such findings and determinations; and
NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of Yorba Linda, California as follows:

SECTION 1. The above recitals are true and correct and incorporated herein.

SECTION 2. The City Council of the City of Yorba Linda, for itself and for each of its subordinate legislative bodies, reaffirms its prior determination in Resolution No. 2022- 5779, reauthorizes the need for teleconferenced meetings pursuant to the requirements of AB 361, and finds and declares as follows:
 A continued state of emergency, as declared by the State of California, exists.  The City Council of the City of Yorba Linda has reconsidered the circumstances of the state of emergency.
 The state of emergency continues to directly impact the ability of the Council members to meet safely in person and the City of Yorba Linda and State of California continue to impose or recommend measure to promote social distancing

RESOLUTION NO. 2022-5787
PAGE 3
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17488541.1 a02/10/22 -3-
including without limitation (i) promoting and utilizing remote attendance options at City Council meetings, (ii) allowing work from home arrangements for City employees, (iii) using barriers and other means of separating employees from one another and from the public throughout City facilities and (iv) requiring masks to be worn regardless of vaccination status in all indoor public settings.

SECTION 3. The City Council of the City of Yorba Linda, and all of its subordinate legislative bodies, shall comply with the provisions and requirements of AB 361 during each and every public meeting where remote participation of a Council member, board member, commissioner, or committee member (as the case may be) occurs, unless such participation complies with the Brown Act’s pre-AB 361 teleconferencing requirements.

SECTION 4. The City Manager, or designee, is authorized and directed to take all action necessary to implement this Resolution.

PASSED AND ADOPTED by the City Council of the City of Yorba Linda at a regular meeting held on the 15th day of February, 2022. _________________________________

CARLOS RODRIGUEZ, MAYOR

CITY OF YORBA LINDA
ATTEST:
________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER, LLP
________________________________

CITY ATTORNEY

RESOLUTION NO. 2022-5787
PAGE 4
539/009410-1001
17488541.1 a02/10/22 -4-

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF YORBA LINDA )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, HEREBY DO CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the City Council of the City of Yorba Linda, held on the 15th day of February, 2022.

AYES: COUNCIL MEMBERS: Campbell, Haney, Hernandez, Huang, Rodriguez NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

CITY OF YORBA LINDA

PLANNING COMMISSION

AGENDA ITEM SUMMARY
Meeting Date: February 9, 2022
Community Development Department
Planning Division
Director
David Brantley, AICP
APPROVAL OF DECEMBER 15, 2021, PLANNING COMMISSION MEETING MINUTES A motion was made by Commissioner Masterson, Second by Commissioner Bernstein to approve the December 15, 2021, Planning Commission meeting minutes. The motion carried (3-0-0-2) with the following roll call vote:

AYES: Darnell, Masterson, Pease
NOES: None
ABSENT: None
ABSTAIN: Bernstein, Singh
APPROVAL OF JANUARY 12, 2022, PLANNING COMMISSION MEETING MINUTES A motion was made by Commissioner Masterson, Second by Commissioner Bernstein to approve the January 12, 2022, Planning Commission meeting minutes. The motion carried (5-0) with the following roll call vote:

AYES: Darnell, Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: None
ABSTAIN: None
GOVERNMENT CODE SECTION NO. 65402 FINDING RE: GRANTOF EASEMENT BY THE

CITY OF YORBA LNDA TO SOUTHERN CALIFORNIA EDISON TO RELOCATE

TRANSMISSION AND DISTRIBUTION POWER POLES WITHIN A CITY OWNED

PARKWAY
A motion was made by Commissioner Bernstein, Second by Commissioner Masterson to adopt Resolution No. 5489 finding that the proposed grant of easement conforms to the Yorba Linda General Plan, as required by State Government Code Section No. 65402. The motion carried (5-0) with the following roll call vote:

AYES: Darnell, Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: None
ABSTAIN: None
GOVERNMENT CODE SECTION NO. 65402 FINDING RE: VACATION OF LANDSCAPE MAINTENANCE EASEMENT AT 5851 DEERFOOT LANE IN ACCORDANCE WITH THE CITY COUNCIL POLICY E-5A Page 307 of 329
2 A motion was made by Commissioner Singh, Second by Chair Pro Tem Pease to adopt Resolution No. 5490 finding that the proposed vacation of the subject landscape easement area conforms to the Yorba Linda General Plan, as required by State Government Code Section No. 65402. The motion carried (5-0) with the following roll call vote:

AYES: Darnell, Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: None
ABSTAIN: None
LOT LINE ADJUSTMENT 2022-01 YORBA LINDA WATER DISTRICT
Summary: A request to reconfigure and merge the common property lines between four existing parcels of land located on the northwest side of Fairmont Boulevard and west of Little Canyon Lane, in the R-ML (Residential Medium-Low Density) and OS-G (Open Space General) zones.

The lot merger proposal would result in a reduction of the total lots from four to three.

CEQA STATUS: Categorical Exemption (Class 5, Minor Alterations in Land Use Limitations) MEASURE B APPLICABILITY: a) Vote – No; b) Public Notice – No TRAFFIC COMMISSION REVIEW: No
RECOMMENDATION: To adopt a resolution approving the project.

A motion was made by Chair Pro Tem Pease, Second by Commissioner Bernstein to adopt Resolution No. 5491 approving Lot Line Adjustment 2022-01 Yorba Linda Water District. The motion carried (5-0) with the following roll call vote:

AYES: Darnell, Masterson, Pease, Bernstein, Singh
NOES: None
ABSENT: None
ABSTAIN: None
Adjournment: The meeting adjourned at 7:00 p.m. to the March 9, 2022, Planning Commission meeting at 6:30 p.m.

CITY CLERK'S OFFICE
DATE: FEBRUARY 15, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARCIA BROWN, CMC, CITY CLERK
SUBJECT: COUNCIL COMMITTEE AND AGENCY REPORTS

RECOMMENDATION
It is recommended that the City Council receive and file this report.

DISCUSSION
City Council members serve on a number of outside committees and agencies. Attached are updates received recently from these agencies.

ATTACHMENTS

1. Reports from City Council Organizations, Agencies and Committees

PUBLIC WORKS DEPARTMENT
DATE: FEBRUARY 15, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E., DIRECTOR OF PUBLIC WORKS / CITY ENGINEER PREPARED BY: JESSE GUTIERREZ, ASSESSMENT DIST. MANAGER
SUBJECT: PUBLIC HEARING DECLARING THE VACATION OF A PORTION OF THE LANDSCAPE EASEMENT AT 5851 DEERFOOT LANE

RECOMMENDATION
It is recommended that City Council:

1. Adopt Resolution No. 2022-5784 (Attachment 2), declaring a portion of the landscape easement at 5851 Deerfoot Lane, Assessor’s Parcel Number (APN) 348-221-14, as unnecessary for present or prospective public use and vacating the same pursuant to California Streets & Highways Code Section 8300 et seq.; and

2. Direct staff to remove the existing irrigation lines, within the proposed vacation areas; and

3. Direct staff to continue to irrigate and maintain the designated areas until the final recordation of the landscape easement vacation documents are processed; and

4. Direct the City Clerk to cause a certified copy of the proposed resolution to be recorded in the Office of the Clerk-Recorder, County of Orange upon completion of any removal of irrigation equipment undertaken by the City.

BACKGROUND
The property owner at 5851 Deerfoot Lane, APN 348-221-14, (“Subject Property”) has requested a partial vacation of the landscape easement on the property in order to construct a fence along the rear perimeter of the property. The Subject Property is located near the end of the cul-de-sac on Deerfoot Lane and is in Local Landscape Assessment District (LMAD) Zone L4A.

The property owner submitted a site plan with a proposed fence along the back perimeter of the property. Staff reviewed the site plan and found that the proposed improvements are located within a city easement for landscape purposes. The easement area is located on a landscaped slope that was part of the original development.

The proposed improvements would conflict with the irrigation and maintenance operations of the landscaped area. The property owner indicated an interest in acquiring a portion of

P U B L I C H E A R I N G D E C L A R I N G T H E V A C A T I O N O F A P O R T I O N O F T H E L A N D S C A P E E A S E M E N T A T 5 8 5 1 D E E R F O O T L A N E P a g e | 2
the landscape easement. The existing irrigation system would be modified to exclude the area proposed to be vacated. Staff reviewed the property owner’s proposed improvements and is in favor of a partial vacation the landscape easement.

On January 18, 2022, the City Council approved Resolution No. 2022-5780 declaring its intent to vacate the landscape easement at 5851 Deerfoot Lane, directed staff to require a release of liability agreement be executed by the property owner to allow the existing above grade irrigation lines to remain in place, and to set February 15, 2022, as the Public Hearing date for the vacation process. The property owner has elected not to retain the City’s existing above-grade irrigation lines, necessitating their removal by staff. Therefore, there is no need for the Agreement to Transfer Improvements, Assumptions of Liability, and Release to be executed.

DISCUSSION
The purpose of this public hearing is to hear evidence and testimony offered by persons interested in the proposed vacation. At the conclusion of the public hearing, if the City Council finds that the landscape easement is unnecessary for present or prospective public use, the City Council may order the vacation of the easements by adopting Resolution No. 2022-5784 (Attachment 2).

Streets & Highways Code Section 8300 et seq. sets forth the procedures for vacating public service easements, such as said landscape easement. First, the City Council adopts a resolution declaring its intent to vacate the easement and instructs the City Clerk to set the hearing and publish and post the required notices. On January 18, 2022, the City Council adopted Resolution No. 2022-5780, declaring its intent to vacate the landscape easement, and directing staff to publish and post the Notice of the Public Hearing on the proposed vacation.

The City Clerk has caused the Notice of Public Hearing to be published in the Yorba Linda Star for two consecutive weeks prior to the public hearing. The City Engineer has caused the Notice of Public Hearing to be posted on the property pursuant to the requirements of the Streets & Highways Code.

The disposition of the subject property is consistent with the City’s General Plan. Pursuant to Government Code 65402, the General Plan consistency finding was made by the Planning Commission at the February 09, 2022 (Pending) meeting.

FISCAL IMPACT
There will be minor costs related to 1) the modification of the existing irrigation systems, via removal of applicable above-grade lines, to isolate them from the areas that will no longer be maintained; and 2) the irrigation and maintenance that will continue until the completion

P U B L I C H E A R I N G D E C L A R I N G T H E V A C A T I O N O F A P O R T I O N O F T H E L A N D S C A P E E A S E M E N T A T 5 8 5 1 D E E R F O O T L A N E P a g e | 3
of the easement vacation process. The costs associated with the modification of the existing irrigation system will be covered using the deposited funds provided by the property owner.

Deposited funds are available in the Project Account No. 7010000-227560, for vacation number VAC21-002.

ALTERNATIVES
Do not accept the staff recommendation and defer action to a later date.

ATTACHMENTS

1. Attachment 1 – Vicinity Map

2. Attachment 2 – Resolution No. 2022-5784, with Exhibits

Not to Scale
BASTANCHURY RD.

IMPERIAL HWY 90
YORBA LINDA BLVD.

LAKEVIEW AVE. FAIRMONT BLVD.

VILLAGE CENTER DR.

CA-91 HWY CITY OF YORBA LINDA YORBA RANCH RD. NORTH CA-57 HWY City of Yorba Linda
Public Works
KELLOGG DR.

VACATION SITE

VICINITY MAP
ATTACHMENT No. 1

KELLOGG DRIVE

DEERFOOT LANE

ARROYO CAJON DR IVE

VACATION SITE

RESOLUTION NO. 2022-5784

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF YORBA LINDA, CALIFORNIA, DECLARING ITS

INTENT TO A PARTIAL VACATION OF THE LANDSCAPE
EASEMENT AT 5851 DEERFOOT LANE
WHEREAS, the City Council of the City of Yorba Linda ("City Council") desires to initiate proceedings to vacate a portion the landscape easement at 5851 Deerfoot Lane in the City of Yorba Linda, County of Orange, California (Subject Property); and WHEREAS, in order to vacate a portion of the landscape easement on the Subject Property, the City Council must find that it is unnecessary for present or prospective public use; and
WHEREAS, in order for the City Council to initiate proceedings to vacate a portion of the landscape easement on the Subject Property, it must comply with the provisions of the Public Streets, Highways, and Service Easements Vacation Law of the Streets and Highway Code of the State of California (Streets and Highways Code §8300 et. seq.) ("Vacation Law"); and
WHEREAS, the Vacation Law requires specific procedures for the vacation of public streets and easements.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:

Section 1. The City Council, under the authority vested in it by the Vacation Law, hereby initiates proceedings to vacate a portion of the landscape easement on the Subject Property and set a hearing for all persons interested in or objecting to the proposed vacation the landscape easement on the Subject Property.

Section 2. The time and place for hearing all persons interested in or objecting to the proposed vacation is to be held on February 15, 2022, at 7:00 p.m. in the Council Chambers at 4845 Casa Loma Avenue, Yorba Linda, California.

Section 3. The City Clerk shall cause this Resolution to be posted and published in the manner prescribed by the Vacation Law.

Section 4. The City Engineer shall post notices conspicuously along the line of the Subject Property at least two weeks prior to the public hearing on February 15, 2022.

Such notices shall be posted not more than 300 feet apart, but at least three (3) notices shall be posted. Furthermore, each notice so posted shall make reference to the passage of this Resolution and shall state the time and place of the public hearing.

Section 5. The City Clerk shall certify as to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 15th day of February, 2022.

RESOLUTION NO. 2022-5784
PAGE NO. 2
__________________________

CARLOS RODRIGUEZ, MAYOR

CITY OF YORBA LINDA
ATTEST:
____________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA
APPROVED AS TO FORM:

RUTAN & TUCKER LLP
__________________________

CITY ATTORNEY

STATE OF CALIFORNIA )
ss.

COUNTY OF ORANGE )
I, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 15th day of February, 2022, and was carried by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
________________________________

MARCIA BROWN, CITY CLERK

CITY OF YORBA LINDA

PUBLIC WORKS DEPARTMENT
DATE: FEBRUARY 15, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, PUBLIC WORKS DIRECTOR / CITY ENGINEER

DAVID BRANTLEY, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: NATE FARNSWORTH, PLANNING MANAGER

TONY WANG, TRAFFIC ENGINEERING MANAGER
SUBJECT: CONTINUED PUBLIC HEARING FOR A GENERAL PLAN AMENDMENT

TO UPDATE AND AMEND THE CIRCULATION ELEMENT AND TO
APPROVE AN ADDENDUM TO THE 2016 CERTIFIED ENVIRONMENTAL

IMPACT REPORT FOR THE GENERAL PLAN

RECOMMENDATION
It is recommended that the City Council continue the public hearing to the March 1, 2022, Council meeting for a Resolution approving an Addendum to the 2016 Certified Environmental Impact Report (EIR) for the General Plan and approve an amendment to the Circulation Element to modify the Circulation Element Map to reclassify a portion of Savi Ranch Parkway from Yorba Linda Boulevard to Old Canal Road.

BACKGROUND
In accordance with notice requirements, this public hearing was scheduled and published accordingly in the North Orange County – News/Yorba Linda Star on February 3, 2022.

Action items for this report are ongoing, therefore staff recommends that the public hearing be continued to the March 1, 2022, Council meeting.

FISCAL IMPACT
There is no direct fiscal impact.

ALTERNATIVES
The City Council can direct staff to propose an alternate future Council date for continued public hearing.

ATTACHMENTS
None