Yorba Linda City Council
December 20, 2022

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-41-
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) Lien Date: January 1
Levy Date: July 1
Due Date:` First installment – November 1
Second installment – February 1
Delinquent Date: First installment – December 10
Second installment – April 10
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.

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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-42-
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)
Restricted includes amounts that are constrained on the use of resources by either 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 F-3 – 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.

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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-43-
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)
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. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financing of the right to use and underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-44-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F) Future Accounting Pronouncements
GASB Statements listed below may have an effect when implemented in the future financial statements.

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

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. 99 Omnibus 2022 The provisions of this Statement are effective for fiscal year
ending June 30, 2023
GASB Statement No.
100
Accounting Changes and Error
Corrections
The provisions of this Statement
are effective for fiscal year
ending June 30, 2024
GASB Statement No.
101
Compensated Absences The provisions of this Statement
are effective for fiscal year
ending June 30, 2023
2) STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balance / Net Position
The Miscellaneous Grants Fund had a deficit fund balance of $237,739, as of June 30, 2022. 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 had deficit fund balance of $92,886, as of June 30, 2022, 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
For the Fiscal Year Ended June 30, 2022
-45-
3) CASH AND INVESTMENTS
Cash and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Statement of net position:

Pooled cash and investments 81,566,837 $
Cash and investments with fiscal agents 31
Statement of fiduciary net position:

Pooled cash and investments 5,412,549
Cash and Investments with Fiscal Agents 3,313,337
Total Cash and Investments 90,292,754 $
Cash and investments as of June 30, 2022, consist of the following:

Petty cash 13,070 $
Sum of deposits with financial institutions 16,338,661
Investments 73,941,023
Total 90,292,754 $
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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-46-
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 User 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.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One User 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 Certificates of Deposit N/A N/A N/A
Local Agency Investment Fund (LAIF) N/A N/A N/A

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-47-
3) CASH AND INVESTMENTS (continued)
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, 2022, the City had the following investments and original maturities:

Remaining Investment Maturities
12 Months or 1 to 2 3 to 5
Less Years Years Total
Medium Term Corporate Notes 196,553 $ 2,179,805 $ 8,052,840 $ 10,429,198 $ Negotiable Certificates of Deposit 357,894 - - 357,894
Asset-Backed Securities - 802,531 3,154,758 3,957,289
U.S Treasury Issues 632,125 6,822,514 13,076,530 20,531,169 U.S Government Agency Securities:

Federal Home Loan Mortgage Corp. - - 782,356 782,356
Federal National Mortgage Assn. 433,291 1,536,507 3,151,191 5,120,989 Municipal Bond 191,400 1,190,814 1,923,852 3,306,066
Supra-National Agency Bond / Note 890,860 746,299 453,781 2,090,940 Local Agency Investment Fund (LAIF) 26,983,254 26,983,254 California Asset Management Program (CAMP) 381,868 381,868 $ 13,278,470 30,067,245 $ 30,595,308 $ 73,941,023 $
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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-48-
3) CASH AND INVESTMENTS (continued)
Fair Value Measurements (continued)
The City had the following recurring fair value measurements as of June 30, 2022:

Active Markets Significant Other Significant
for Identical Observable Inputs Unobservable
Investment Type Total Assets (Level 1) (Level 2) Inputs (Level 3) Debt Securities:

Medium Term Corporate Notes 10,429,198 $ - $ 10,429,198 $ - $ Negotiable Certificates of Deposit 357,894 - 357,894 -
Asset-Backed Securities 3,957,289 - 3,957,289 -
U.S. Treasury Issues 20,531,169 - 20,531,169 -
U.S. Government Collateralized Mortgage 782,356 - 782,356 - U.S. Government Agency Securities 5,120,989 - 5,120,989 - Municipal Bond 3,306,066 - 3,306,066 -
Supra-National Agency Bond / Note 2,090,940 - 2,090,940 - Total Investments at Fair Value 46,575,901 - $ 46,575,901 $ - $ Investments not subject to fair value hierarchy:

Local Agency Investment Fund (LAIF) 26,983,254
California Asset Management Program (CAMP) 381,868
Total Investments 73,941,023 $
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, six Asset-Backed Securities held in the City’s portfolio were not rated by Standard and Poor’s but were rated Aaa, by Moody’s. The Asset-Backed Securities are then grouped in the AAA column from the table below.

Rating as of Fiscal Year End
Minimum
Legal Not
Investment Type Amount Rating AAA AA+/- A+/- BBB Rated
Medium Term Corporate Notes 10,429,198 $ A- - $ 2,055,711 $ 8,373,487 $ - $ - $ Negotiable Certificates of Deposit 357,894 A- - - 357,894 - - Asset-backed Securities 3,957,289 A- 3,957,289 - - - -
U.S. Treasury Issues 20,531,169 N/A - 20,531,169 - - -
U.S. Government Agency Securities:

Federal Home Loan Mortgage Corp. 782,356 N/A - 782,356 - - - Federal National Mortgage Assn. 5,120,989 N/A - 5,120,989 - - - Municipal Bond 3,306,066 N/A 1,148,778 2,009,593 147,695 - - Supra-National Agency Bond / Note 2,090,940 N/A 2,090,940 - - - - Local Agency Investment Funds (LAIF) 26,983,254 N/A - - - - 26,983,254 California Asset Management Program (CAMP) 381,868 N/A - - - - 381,868 Total 73,941,023 $ 7,197,007 $ 30,499,818 $ 8,879,076 $ - $ 27,365,122 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-49-
3) CASH AND INVESTMENTS (continued)
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.

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, 2022, 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.

Currently, LAIF does not have an investment rating. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions (combination of deposits and withdrawals) per month. LAIF requires a one-day prior notice for deposits and withdrawals of $10 million or more.

The total amount invested by the City in LAIF as of June 30, 2022, was $26,983,254 LAIF is part of the California Pooled Money Investment Account (PMIA), which as of June 30, 2022, had a balance of $231,570,067,770. LAIF is unrated as to credit quality.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-50-
3) CASH AND INVESTMENTS (continued)
External Investment Pools (continued)
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. On June 30, 2022, CAMP had a total portfolio of approximately $7.3 billion of which all was invested in non-derivative financial products.

The average maturity of CAMP investments was 32 days as of June 30, 2022. 4) LEASE RECEIVABLE
For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.

On July 1, 2021, the City entered into a 49 month lease as Lessor for the use of Quarter Horse Trailhead. An initial lease receivable was recorded in the amount of $21,677. As of June 30, 2022, the value of the lease receivable is $16,859. The lessee is required to make monthly fixed payments of $400. The lease has an interest rate of 0.8927%. The value of the deferred inflow of resources as of June 30, 2022, was $16,379, and the City recognized lease revenue of $5,298 during the fiscal year. The lessee has 3 extension option(s), each for 60 months.

On July 1, 2021, the City entered into a 30 month lease as Lessor for the use of Site No:

LA2671A. An initial lease receivable was recorded in the amount of $77,534. As of June 30, 2022, the value of the lease receivable is $48,560. The lessee is required to make monthly fixed payments of $2,402. The lease has an interest rate of 0.7268%. The value of the deferred inflow of resources as of June 30, 2022, was $46,726, and the City recognized lease revenue of $30,808 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-51-
4) LEASE RECEIVABLE (continued)
On July 1, 2021, the City entered into a 163 month lease as Lessor for the use of Site Name: Nixon. An initial lease receivable was recorded in the amount of $487,603. As of June 30, 2022, the value of the lease receivable is $464,122. The lessee is required to make monthly fixed payments of $2,600. The lease has an interest rate of 1.9134%. The value of the deferred inflow of resources as of June 30, 2022, was $451,706, and the City recognized lease revenue of $35,897 during the fiscal year. The lessee has 2 extension option(s), each for 60 months.

On July 1, 2021, the City entered into a 57 month lease as Lessor for the use of 4756 Valley View Avenue. An initial lease receivable was recorded in the amount of $119,499. As of June 30, 2022, the value of the lease receivable is $96,588. The lessee is required to make monthly fixed payments of $1,987. The lease has an interest rate of 1.0586%. The value of the deferred inflow of resources as of June 30, 2022, was $94,502, and the City recognized lease revenue of $24,997 during the fiscal year. The lessee has 1 extension option(s), each for 60 months.

On July 1, 2021, the City entered into a 28 month lease as Lessor for the use of Site Name:

Eastside Park. An initial lease receivable was recorded in the amount of $87,605. As of June 30, 2022, the value of the lease receivable is $52,431. The lessee is required to make monthly fixed payments of $2,882. The lease has an interest rate of 0.5135%. The Buildings estimated useful life was 30 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2022, was $50,193, and the City recognized lease revenue of $37,411 during the fiscal year. The lessee has 3 extension option(s), each for 60 months.

On July 1, 2021, the City entered into a 19 month lease as Lessor for the use of Site Name:

Shockey 2. An initial lease receivable was recorded in the amount of $45,870. As of June 30, 2022, the value of the lease receivable is $18,660. The lessee is required to make monthly fixed payments of $2,269. The lease has an interest rate of 0.5135%. The Buildings estimated useful life was 21 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2022, was $17,594, and the City recognized lease revenue of $28,276 during the fiscal year. The lessee has 3 extension option(s), each for 60 months.

On July 1, 2021, the City entered into a 64 month lease as Lessor for the use of Tract No:
15926. An initial lease receivable was recorded in the amount of $219,693. As of June 30, 2022, the value of the lease receivable is $182,804. The lessee is required to make monthly fixed payments of $3,042. The lease has an interest rate of 0.3160%. The value of the deferred inflow of resources as of June 30, 2022, was $178,841, and the City recognized lease revenue of $40,852 during the fiscal year. The lessee has 3 extension option(s), each for 60 months.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-52-
4) LEASE RECEIVABLE (continued)
On July 1, 2021, the City entered into a 50 month lease as Lessor for the use of 4801 Park Avenue. An initial lease receivable was recorded in the amount of $102,276. As of June 30, 2022, the value of the lease receivable is $78,016. The lessee is required to make monthly fixed payments of $2,083. The lease has an interest rate of 0.8927%. The Buildings estimated useful life was 51 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2022, was $77,730, and City of Yorba Linda, CA recognized lease revenue of $24,546 during the fiscal year.

The remaining expected to maturity principal and interest payments related to leases for the following fiscal years:

Fiscal Year
Ending June 30, Principal Interest Total Payments
2023 201,810 $ 11,298 $ 213,050 $
2024 154,981 9,764 164,745
2025 126,209 8,515 134,724
2026 101,188 7,361 108,549
2027 50,836 6,534 57,370
2028 - 2032 195,918 22,184 218,102
2033 - 2036 127,098 3,323 130,420
Total 958,040 $ 68,978 $ 1,026,960 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-53-
5) 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, 2022, was as follows:

Balance Balance
July 1, 2021 Increases Decreases Transfers June 30, 2022 Governmental Activities:

Capital Assets, Not Being Depreciated:

Land 34,750,068 $ - $ (206,766) $ - $ 34,543,302 $
Street pavement infrastructure 200,603,744 - - - 200,603,744 Construction In Progress 4,145,413 * - 5,995,959 (71,895) 10,069,477 Total Capital Assets
Not Being Depreciated 239,499,225 5,995,959 (206,766) (71,895) 245,216,523 Capital Assets, Being Depreciated:

Buildings and improvements 124,395,436 * - 1,035,765 71,895 125,503,096 Machinery and equipment 14,589,769 616,724 - - 15,206,493 Motor vehicles 1,617,304 103,592 (119,533) - 1,601,363
Other Infrastructure 152,383,702 * - 4,093,599 - 156,477,301 Total Capital Assets
Being Depreciated 292,986,211 5,849,680 (119,533) 71,895 298,788,253 Less Accumulated Depreciation:

Buildings and improvements (31,819,353) (2,887,302) - - (34,706,655) Machinery and equipment (11,895,619) (786,913) - - (12,682,532) Motor vehicles (1,284,155) (84,005) 119,533 - (1,248,627) Other Infrastructure (40,537,716) (2,726,157) - - (43,263,873) Total Accumulated Depreciation (85,536,843) (6,484,377) 119,533 - (91,901,687) Total Capital Assets
Being Depreciated, Net 207,449,368 (634,697) - 71,895 206,886,566 Capital Assets, Net 446,948,593 $ 5,361,262 $ (206,766) $ - $ 452,103,089 $ * Beginning balances will not agree to prior year financial statements due to a reclass of assets to appropriate category.

Depreciation expense was charged to the following functions in the Statement of Activities:

Governmental Activities:

General government $ 2,121,379
Public safety 53,992
Community development 50,396
Parks and recreation 2,992,629
Public works 1,265,981
Total 6,484,377 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-54-
5) CAPITAL ASSETS (continued)
Balance Balance
July 1, 2021 Increases Decreases Transfers June 30, 2022 Business-Type Activities:

Capital Assets, Not Being Depreciated:

Land 12,721,948 $ * $ - - $ - $ 12,721,948 $
Construction In Progress 9,456 * - - (9,456) -
Total Capital Assets
Not Being Depreciated 12,731,404 - - (9,456) 12,721,948 Capital Assets, Being Depreciated:

Structures and improvements 21,561,646 188,847 - 9,456 21,759,949 Machinery and equipment 3,256,840 295,446 - - 3,552,286 Total Capital Assets
Being Depreciated 24,818,486 484,293 - 9,456 25,312,235 Less Accumulated Depreciation:

Structures and improvements (11,964,401) (606,991) 13,584 - (12,557,808) Machinery and equipment (2,545,706) (114,635) (13,584) - (2,673,925) Total Accumulated Depreciation (14,510,107) (721,626) - - (15,231,733) Total Capital Assets
Being Depreciated, Net 10,308,379 (237,333) - 9,456 10,080,502 Capital Assets, Net 23,039,783 $ (237,333) $ - $ - $ 22,802,450 $ * Beginning balances will not agree to prior year financial statements due to a reclass of assets to appropriate category.

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 $ 721,626
Total 721,626 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-55-
6) LONG-TERM RECEIVABLES
Loans Receivable (Net)
Loans and notes receivable as of June 30, 2022, totaled $46,949,332 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 as of June 30, 2022, was $18,065,496.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-56-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (continued)
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.

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 as of June 30, 2022, for Evergreen Villas was $10,956,875.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-57-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (continued)
Affordable Housing Agreements (continued)
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 lowincome 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 as of June 30, 2022, was $12,329,344.

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.

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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-58-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (continued)
Affordable Housing Agreements (continued)
Orange Housing Development Corporation (continued)
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 as of June 30, 2022, was $5,597,617.

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, 2022, 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, 2022, the SERAF loan and non-SERAF loan has been repaid in full.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-59-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (continued)
Affordable Housing Agreements (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 $598,080 transferred during the year ended June 30, 2022. As of June 30, 2022, the loan has been repaid in full. 7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2022, was as follows:

A) Due To / From Other Funds
Paying Funds Amount Receiving Funds Amount
Major Governmental Fund Major Governmental Fund
General Fund 511,629 $ Miscellaneous Grants Fund 346,531 $ Nonmajor Governmental Funds
Traffic Safety Fund 1,921
CDBG Grant Fund 70,291
SB-2 Fund 92,886
Total 165,098
$ 511,629 511,629 $
Interfund balances are the result of short-term borrowing to cover negative cash balances and operating shortages as of June 30, 2022. All of these balances are expected to be reimbursed within the subsequent year.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-60-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) B) Advances To / From Other Funds
Receiving Funds Amount Paying Funds Amount
Nonmajor Governmental Funds Proprietary Fund
Master Plan of Drainage Fund 1,840,000 $ Black Golf Course Fund 1,840,000 $ $ 1,840,000 1,840,000 $
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.

C) Interfund Transfers
Receiving Funds Amount Paying Funds Amount
Major Governmental Funds Major Governmental Funds
General Fund 640,136 $ General Fund 2,380,850 $
Landscape Maintenance Assessment District Fund 1,106,448 Landscape Maintenance Assessment District Fund 587,029 Capital Improvements Fund 12,356,181 Public Library Fund 208,069 Affordable Housing Fund 119,616 Miscellaneous Grants Fund 498,760 Public Library Fund 64,515 ARPA 438,635
Nonmajor Governmental Funds Nonmajor Governmental Funds Lighting and Signal Project Fund 144,389 AQMD Fund 42,711 PEG Fund 9,087
Gas Tax Fund 1,536,368
Measure M2 Fund 1,296,350
Road Maintenance and Rehabilitation Fund 1,665,718
Traffic Safety Fund 48,615
Citizen Option Public Safety fund 167,848
Covid-19 Fund 1,698
Park in Lieu Fund 5,240,295
Master Plan of Drainage Fund 149,494
Traffic Mitigation fund 120,285
Lighting and Signal Project Fund 39,473
$ 14,431,285 $ 14,431,285

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-61-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) C) Interfund Transfers (continued)
The transfer to the Capital Improvements Fund in the amount of $12,356,181 consisted primarily of:

1. The transfer from the General Fund of $1,174,431, is related to a reimbursement of funding the Capital Improvements Fund for miscellaneous projects.

2. The transfer from Landscape Maintenance Assessment District Fund (LMAD) of $442,640, is related to funding the LMAD Median Landscape Transit project and LMAD Capital Improvement Renovation project.

3. The transfer from the Public Library Fund of $208,069 is related to funding the construction of a new library.

4. The transfers from the Miscellaneous Grants Fund of $438,760 and other nonmajor governmental funds of $10,092,281, were primarily for reimbursing the Capital Improvements Fund for capital expenditures.

The transfer to the Landscape Maintenance Assessment District Fund of $1,106,448 consisted primarily the General Fund of $1,086,803 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. The remaining transfer is from the ARPA Fund of $19,645 to reimburse for miscellaneous expenditures.

The transfers to the General Fund of $640,136 were primarily the result of transfers from the ARPA Fund of $354,475 to reimburse the General Fund for public safety and other miscellaneous expenditures. The remaining amounts are from the Miscellaneous Grant Fund of $60,000 and other nonmajor governmental funds of $225,661 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 transfer to the Affordable Housing Fund consisted of $119,616 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 6 to the basic financial statements.

The transfer to the Public Library Fund of $64,515 is from the ARPA Fund to reimburse for miscellaneous expenditures.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-62-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) C) Interfund Transfers (continued)
The transfer to the Lighting and Signal Improvement Fund of $144,389 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. 8) 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, 2022:

Balance Balance Due Within
July 1, 2021 Additions Deletions June 30, 2022 One Year Governmental Activities:

Lease Revenue Bonds 13,640,000 $ - $ (540,000) $ 13,100,000 $ 570,000 $ Private Placement Lease 7,611,000 - (7,611,000) - -
Unamortized Bond Premium 1,212,372 - (192,784) 1,019,588 - Claims and Judgements:

Claims Liability 275,336 26,105 (44,591) 256,850 256,850 Workers Compensation 692,077 31,944 - 724,021 109,352
Compensated Absences 1,431,892 798,667 (647,204) 1,583,355 870,545 Net Pension Liability (Note 10) 22,596,356 - (9,114,126) 13,482,230 - OPEB Obligation (Note 11) 14,625,902 770,395 15,396,297 - Total 62,084,935 $ 1,627,111 $ (18,149,705) $ 45,562,341 $ 1,806,747 $ 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, 2022, was $13,100,000.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-63-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Lease Financings (continued)
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Fiscal Year
Ending June 30, Principal Interest Total
2023 570,000 $ 571,638 $ 1,141,638 $
2024 600,000 543,138 1,143,138
2025 630,000 513,138 1,143,138
2026 660,000 481,638 1,141,638
2027 690,000 448,638 1,138,638
2028 - 2032 3,995,000 1,698,088 5,693,088
2033 - 2037 4,860,000 810,888 5,670,888
2038 1,095,000 43,802 1,138,802
Total 13,100,000 $ 5,110,968 $ 18,210,968 $
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.

The interest payments are due semi-annually on February 1 and August 1. The City fully paid the outstanding liability during fiscal year ending June 30, 2022.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-64-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) 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 risksharing 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
For the Fiscal Year Ended June 30, 2022
-65-
8) 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 selfinsurance program.

On June 30, 2022, 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, 2022, of $980,871 is reported in the Statement of Net Position for general liability and workers’ compensation claims and judgments.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-66-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Claims and Judgments (continued)
Changes in the claims and judgements liability balance for the fiscal years ended June 30, 2022, and 2021, including a provision for incurred but not reported claims were as follows:

Claims Claims and Claims
Fiscal Year Payable Changes in Claims Payable
Ending June 30, Beginning Estimates Payments Ending
2021 939,444 $ 649,292 $ 621,323 $ 967,413 $
2022 967,413 58,049 44,591 980,871
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 2023.

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

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-67-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) 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, 2022, was $1,583,355.

B) Long-Term Liabilities – Business-Type Activities
The following is a summary of changes in long-term liabilities of the City’s businesstype activities for the fiscal year ended June 30, 2022:

Balance Balance Due Within
July 1, 2021 Additions Deletions June 30, 2022 One Year Business-Type Activities:

Loan payable - $ 1,246,466 $ (120,528) $ 1,125,938 $ 244,522 $ Lease Financing
In November 2021, Black Gold Golf Course entered into a lease financing agreement with Zions Bancorporation for the purchase of groundskeeping equipment, mowing vehicles and equipment, and a clubhouse transportation vehicle. The total amount financed is $1,246,466 over five years. The interest rate is 1.31% with semi-annual payments of $129,237 beginning June 1, 2022. The outstanding balance at June 30, 2022 was $1,125,938.

Fiscal Year
Ending June 30, Principal Interest Total
2023 244,522 $ 13,951 $ 258,473 $
2024 247,737 10,738 258,475
2025 250,992 7,482 258,474
2026 254,291 4,183 258,474
2027 128,396 841 129,237
Total 1,125,938 $ 37,195 $ 1,163,133 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-68-
9) 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, 2022, is $1,343,590.
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) A) General Information about the Pension Plan
Plan Description
The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Plan’s June 30, 2020 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report.

This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-69-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
A) General Information about the Pension Plan (continued) 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 full-time 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 5 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plan’s provisions and benefits in effect at June 30, 2022 are summarized as follows:

Miscellaneous
Prior to On or After
January 1, 2013 January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life 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% 7.25%
Required employer contribution rates 10.52% 7.20%

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-70-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
A) General Information about the Pension Plan (continued) Employees Covered
On June 30, 2021 (measurement date), the following employees were covered by the benefit terms for the Plan:

Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 151 Inactive employees entitled to but not yet receiving benefits 57 Former employees currently working for another CalPERS agency 60 Active employees 118
Total 386
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Employer Contributions to the Plan for the fiscal year ended June 30, 2021 were $2,692,503.

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, 2021, using an annual actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, 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
For the Fiscal Year Ended June 30, 2022
-71-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
B) CalPERS Net Pension Liability (continued)
Actuarial Assumptions
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 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) Net of pension plan investment and administrative expenses, including inflation.

All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-72-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
B) CalPERS Net Pension Liability (continued)
The expected real rates of return by asset class are as follows:

Assumed
Asset Real Return Real Return
Asset Class1 Allocation Years 1-102 Years 11+3
Public 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%
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
1 In the System's ACFR, Fixed Income is included in Global Debt Change of Assumptions
There were no change of assumptions for measurement date June 30, 2021.

Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-73-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
B) CalPERS Net Pension Liability (continued)
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of

6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

The changes in the Net Pension Liability for the Plan are as follows:

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-74-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
C) Changes in the CalPERS Net Pension Liability
Increase (Decrease)
Net Position
Total Pension Plan Fiduciary Liability/(Asset)
Liability (a) Net Position (b) (c)=(a)-(b)
Balance, June 30, 2020 (VD) $ 57,925,689 80,522,045 $ 22,596,356 $ Changes in Recognized for the -
Measurement Period: -
Service Cost 1,885,407 - 1,885,407
Interest on the Total Pension Liability 5,709,277 - 5,709,277 Changes in Benefit Terms - - -
Differences between Expected -
and Actual Experience 272,016 - 272,016
Changes of Assumptions - - -
Contribution from the Employer - 2,521,606 (2,521,606)
Contributions from the Employees - 1,317,894 (1,317,894) Net Investment Income2 13,199,190 - (13,199,190)
Benefit Payments, including Refunds -
of Employee Contributions (3,773,449) (3,773,449) -
Administrative Expense - (57,864) 57,864
Other Miscellaneous Income/(Expense) - - -
Net Changes during 2020-21 13,207,377 4,093,251 (9,114,126) Balance, June 30, 2021 (MD)
1 $ 71,133,066 84,615,296 $ 13,482,230 $
2 Net of administrative expenses.
1 The fiduciary net position includes receivables for employee's 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 percentage- point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:

Discount Discount
Rate - 1% Current Discount Rate +1%
(6.15%) Rate (7.15%) (8.15%)
Plan's Net Pension Liability/(Asset) 24,747,583 $ 13,482,230 $ 4,197,284 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-75-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
C) Changes in the CalPERS Net Pension Liability

Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and retired) as of the beginning of the measurement period
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2020), the Cit’s net pension liability was $22,596,356. For the measurement period ending June 30, 2021 (the measurement date), the City incurred pension expense of $377,663.

As of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date 2,692,503 $ - $ Differences between expected and actual experience 278,591 (112,021) Net differences between projected and actual earnings
on pension plan investments - (6,583,658)
Total 2,971,094 $ (6,695,679) $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-76-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
D) CalPERS Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
These amounts above are net of outflows and inflows recognized in the 2020-21 measurement period expense. Contributions subsequent to the measurement date of $2,692,503 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Deferred Outflows
Fiscal Year (Inflows) of
Ended June 30, Resources
2023 (1,575,366) $
2024 (1,491,265)
2025 (1,538,908)
2026 (1,811,549)
E) Payable to the Pension Plan
At June 30, 2022, the City reported a payable of $77,962 for the outstanding amount of contributions to the pension plan required for the year then ended.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-77-
11) 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 $683,193 and the total actual contribution was $683,193 for fiscal year ended June 30, 2022.

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
For the Fiscal Year Ended June 30, 2022
-78-
11) OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (continued)
A) General Information about the Other Postemployment Benefits Plan (continued) Employees Covered
On June 30, 2021 (measurement date), the following employees were covered by the benefit term:

Inactive employees or beneficiaries currently receiving benefits 69 Inactive employees entitled to but not yet receiving benefits 28 Active employees 128
Total 225
B) Net OPEB Liability
The net OPEB liability of the Plan was measured as of June 30, 2021, using an interim actuarial valuation as of December 31, 2021, rolled back to June 30, 2021, 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, 2021 (measurement date) actuarial valuation was determined using the following actuarial assumptions:

Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.80%
Inflation 2.50%
Payroll Growth 2.80%
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

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-79-
11) OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (continued)
B) Net OPEB Liability (continued)
Discount Rate
The discount rate used to measure the total OPEB liability as of the June 30, 2021 measurement date, was 6.80%.

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 long- term 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, 2021, are summarized in the following table:

Long-term Expected Real
Asset Class Target Allocation Rate of Return
Global Equity 59.0% N/A
Global Fixed Income 25.0% N/A
Inflation Assets 5.0% N/A
Commodities 3.0% N/A
REITs 8.0% N/A

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-80-
11) 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, 2020 (MD) 15,655,497 $ Service Cost 432,681
Interest 1,102,167
Differences between Expected
and Actual Experience (17,234)
Changes of Assumptions 554,630
Benefit Payments, including Refunds
of Employee Contributions (697,659)
Net Changes during 2019-20 1,374,585
Total OPEB Liability Balance, June 30, 2021 (MD) 17,030,082 Plan Fiduciary Net Position
Contribution from the Employer 997,659
Net Investment Income 304,626
Benefit Payments, including Refunds
of Employee Contributions (697,659)
Admin and Other Expense (436)
Net Changes during 2020-21 604,190
Plan Fiduciary Net Position - Beginning 1,029,595
Plan Fiduciary Net Position - Ending 1,633,785
Net OPEB Liability Balance, June 30, 2021 (MD) 15,396,297 $ 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 6.80%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.80%) or 1- percentage-point higher (7.80%) than the current rate:

Discount Rate - Current Discount Discount Rate
1% (5.80%) Rate (6.80%) +1% (7.8%)
Net OPEB Liability 17,744,480 $ 15,396,297 $ 13,465,277 $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-81-
11) OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (continued)
C) Change in the Net OPEB Liability (continued)
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:

Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Liability 13,210,078 $ 15,396,297 $ 18,128,861 $ D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the City recognized OPEB credit of $1,289,336.

At measurement date of June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to measurement date 683,193 $ - $ Differences between expected and actual experience
in measurement of the Total OPEB Liability - (2,515,816) Changes of assumption 493,004 (3,829,629)
Differences between projected and actual earnings
on OPEB plan investments - (158,838)
Total 1,176,197 $ (6,504,283) $

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-82-
11) OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS (continued)
D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (continued)
The amount of $683,193 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:

Deferred Outflows
Fiscal Year (Inflows) of
Ended June 30, Resources
2023 (1,144,685) $
2024 (1,145,989)
2025 (1,142,994)
2026 (1,150,878)
2027 (1,106,430)
Thereafter (320,303)
12) 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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-83-
12) JOINT VENTURES (continued)
Orange County Fire Authority (continued)
No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2022. 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. 13) 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.

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 $208,209 at June 30, 2022.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-84-
14) 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).

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 as of June 30, 2022:

Pooled cash and investments 2,566,041 $
Restricted cash and investments held with fiscal agent 3,313,337 Total cash and investments 5,879,378 $
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.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-85-
14) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued)
B) Long-Term Liabilities
A description of long-term liabilities outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2022, follows:

Balance Accreted Balance Due Within
July 1, 2021 Interest Deletions June 30, 2022 One Year
Tax Allocation Bonds 38,933,753 $ 823,368 $ 3,310,000 $ 36,447,121 $ 3,460,000 $ Unamortized Premium 1,724,677 - 154,154 1,570,523 154,154 Unamortized Gain on -
Defeasance 2,898,194 - 259,046 2,639,148 259,046
Unamortized Discount (53,653) - (4,795) (48,858) (4,795) Advance from City 598,080 - 598,080 - -
Total 44,101,051 $ 823,368 $ 4,316,485 $ 40,607,934 $ 3,868,405 $ 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.

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 $11,470,618 of the capital appreciation bonds as of June 30, 2022, was $15,957,121.

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-86-
14) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued)
B) Long-Term Liabilities (continued)
Tax Allocation Bonds (continued)
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 - $ - $
2024 - -
2025 996,572 2,936,743
2026 945,335 2,988,352
2027 896,720 3,078,280
2028-2032 1,647,876 6,302,124
Total 4,486,503 15,305,499 $
Accretion 11,470,618
$ 15,957,121
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

City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2022
-87-
14) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued)
B) Long-Term Liabilities (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 as of June 30, 2022, was $20,490,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Fiscal Year
Ending June 30, Principal Interest
2023 3,460,000 $ 723,975 $
2024 3,640,000 556,056
2025 390,000 464,281
2026 440,000 458,694
2027 450,000 446,644
2028-2032 12,110,000 1,799,025
Total 20,490,000 $ 4,448,675 $
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 was fully repaid as of June 30, 2022. Information regarding this advance can be found in Note 6 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.

REQUIRED SUPPLEMENTARY

INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK

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, 2022
-88-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 33,916,418 $ 34,970,268 $ 35,346,788 $ 376,520 $
Licenses and permits 1,724,568 2,204,568 2,502,333 297,765 Intergovernmental 271,139 251,139 116,301 (134,838)
Charges for services 4,000,196 4,128,076 4,408,727 280,651 Investment income 251,000 341,000 (1,087,169) (1,428,169) Fines and forfeitures 60,000 50,000 42,094 (7,906)
Gain on sale of City property - - - -
Miscellaneous 577,934 752,158 301,015 (451,143)
Total revenues 42,697,209 40,801,255 41,630,089 (1,067,120) Expenditures
General government:

Administration 7,642,367 8,163,900 7,298,514 865,386
City Attorney 650,000 766,066 766,066 -
Finance 1,200,980 1,345,490 1,283,372 62,118
Public safety 13,137,917 13,160,617 10,068,075 3,092,542 Community development 3,496,623 4,066,190 3,646,948 419,242 Parks and recreation 7,727,963 8,079,425 7,805,197 274,228 Public works 5,563,132 6,053,832 5,311,119 742,713
Capital outlay 530,376 1,064,980 553,459 511,521
Debt service:

Principal retirement 179,620 7,611,000 7,611,000 -
Interest - 279,451 277,954 1,497
Total expenditures 50,590,951 40,128,978 44,621,704 5,969,247 Excess of Revenues over
(under) Expenditures 672,277 (7,893,742) (2,991,615) 4,902,127 Other financing sources (uses):

Transfers in 520,937 6,354,888 640,136 (5,714,752)
Transfers out (972,632) (8,647,370) (2,380,850) 6,266,520 Gain on sale of assets and land 10,000 27,000 10,157,193 Total other financing sources (uses) (441,695) (2,265,482) 8,416,479 551,768 Net change in fund balance 230,582 (10,159,224) 5,424,864 15,584,088 Fund balance at beginning of fiscal year 37,180,787 37,180,787 37,180,787 - Fund balance at end of fiscal year 37,411,369 $ 27,021,563 $ 42,605,651 $ 15,584,088 $

City of Yorba Linda
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ARPA Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
-89-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental - $ - $ 3,505,112 $ 3,505,112 $
Investment income - - (10,265) (10,265)
Total revenues - - 3,494,847 3,494,847
Expenditures
Public Safety - 3,066,477 3,066,477 -
Total expenditures 3,066,477 - 3,066,477 -
Excess of Revenues over
(under) Expenditures - (3,066,477) 428,370 3,494,847
Other financing sources (uses):

Transfers out - (438,635) (438,635) -
Total other financing sources (uses) - (438,635) (438,635) - Net change in fund balance - (3,505,112) (10,265) 3,494,847 Fund balance at beginning of fiscal year 10,265 10,265 10,265 - Fund balance at end of fiscal year 10,265 $ (3,494,847) $ - $ 3,494,847 $

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, 2022
-90-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income 59,000 $ 59,000 $ 678,366 $ 619,366 $ Total revenues 59,000 59,000 678,366 619,366
Expenditures
Community development 58,500 58,500 - 58,500
Total expenditures 58,500 58,500 - 58,500
Excess of Revenues over
(under) Expenditures 500 500 678,366 677,866
Other financing sources (uses):

Transfers in - 119,616 119,616 -
Total other financing sources (uses) - 119,616 119,616 - Net change in fund balance 500 120,116 797,982 677,866
Fund balance at beginning of fiscal year 50,540,363 50,540,363 50,540,363 - Fund balance at end of fiscal year 50,540,863 $ 50,660,479 $ 51,338,345 $ 677,866 $

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, 2022
-91-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 4,767,208 $ 4,767,208 $ 807,281 $ (3,959,927) $ Total revenues 4,767,208 4,767,208 807,281 (3,959,927)
Other financing sources (uses):

Transfers out (172,687) (7,475,345) (498,760) 6,976,585 Total other financing sources (uses) (172,687) (7,475,345) (498,760) 6,976,585 Net change in fund balance 4,594,521 (2,708,137) 308,521 3,016,658 Fund balance (deficit) at beginning of fiscal year (546,260) (546,260) (546,260) - Fund balance (deficit) at end of fiscal year 4,048,261 $ (3,254,397) $ (237,739) $ 3,016,658 $

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, 2022
-92-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 7,091,833 $ 7,091,833 $ 7,283,398 $ 191,565 $
Intergovernmental - 15,500 22,370 6,870
Charges for services 175,000 175,000 146,589 (28,411)
Investment income 85,700 85,700 (164,864) (250,564)
Fines and forfeitures 25,000 25,000 29,623 4,623
Miscellaneous - - 3,476 3,476
Total revenues 7,393,033 7,377,533 7,320,592 (72,441)
Expenditures
Library 5,917,737 6,110,757 5,787,704 323,053
Capital outlay 64,950 97,705 86,778 10,927
Debt service:

Principal retirement 515,000 515,000 540,000 (25,000)
Total expenditures 6,723,462 6,497,687 6,414,482 308,980 Excess of Revenues over
(under) Expenditures 879,846 669,571 906,110 236,539
Other financing sources (uses):

Transfers in - 64,515 64,515 -
Transfers out - (230,822) (208,069) 22,753
Total other financing sources (uses) - (166,307) (143,554) 22,753 Net change in fund balance 879,846 503,264 762,556 259,292 Fund balance at beginning of fiscal year 3,923,614 3,923,614 3,923,614 - Fund balance at end of fiscal year 4,803,460 $ 4,426,878 $ 4,686,170 $ 259,292 $

City of Yorba Linda
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Landscape Maintenance Assessment District Special Revenue Fund For the Fiscal Year Ended June 30, 2022
-93-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 8,550,045 $ 8,550,045 $ 8,626,959 $ 76,914 $
Investment income 54,500 54,500 (235,647) (290,147)
Miscellaneous - - 2,987 2,987
Total revenues 8,604,545 8,604,545 8,394,299 (210,246)
Expenditures
Public works 9,154,505 9,324,888 8,302,028 1,022,860
Capital outlay - 4,552 4,552 -
Total expenditures 9,329,440 9,154,505 8,306,580 1,022,860 Excess of Revenues over
(under) Expenditures (549,960) (724,895) 87,719 812,614 Other financing sources (uses):

Transfers in 872,632 1,106,448 1,106,448 -
Transfers out - (1,998,070) (587,029) 1,411,041
Total other financing sources (uses) 872,632 (891,622) 519,419 1,411,041 Net change in fund balance 322,672 (1,616,517) 607,138 2,223,655 Fund balance at beginning of fiscal year 6,767,567 6,767,567 6,767,567 - Fund balance at end of fiscal year 7,090,239 $ 5,151,050 $ 7,374,705 $ 2,223,655 $

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-94-
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 2022, documented a PCI score of 79 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 79 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.

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-95-
1) Infrastructure Assets Reported Using the Modified Approach (continued) This is demonstrated by the stable and at times improving PCI ratings over the five-year period shown in the table.

Payment Condition Estimated Actual
Fiscal Year Index (PCI) Rating Preservation Costs Preservation Costs 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
2021-2022* 79 8,200,000 4,137,389
*Denotes years condition assessment was performed.

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-96-
2) Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years* Measurement Measurement Measurement Measurement
Date Date Date Date
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability
Service cost 1,885,407 $ 1,696,577 $ 1,623,776 $ 1,458,002 $ Interest on total pension liability 5,709,277 5,438,271 5,230,301 4,969,509 Changes in assumptions - - - (313,447)
Difference between expected and actual
experience 272,016 (252,047) 716,490 203,742
Benefit payments, including refunds of
employee contributions (3,773,449) (3,648,478) (3,811,074) (3,347,753) Net change in total pension liability 4,093,251 3,234,323 3,759,493 2,970,053 Total pension liability - beginning 80,522,045 77,287,722 73,528,229 70,558,176 Total pension liability - ending (a) 84,615,296 80,522,045 77,287,722 73,528,229 Plan Fiduciary Net Position
Contributions - employer 2,521,606 2,329,240 2,063,002 1,833,255 Contributions - employee 1,317,894 1,285,901 1,228,098 1,150,359 Net investment income 13,199,190 2,777,374 3,467,727 4,165,920 Benefit payments, including refunds of
employee contributions (3,773,449) (3,648,478) (3,811,074) (3,347,753) Net plan to plan resource movement - - - (122)
Administrative expense (57,864) (77,902) (37,357) (75,993) Other miscellaneous income/(expense) - - 122 (144,313)
Net change in plan fiduciary net position 13,207,377 2,666,135 2,910,518 3,581,353 Plan fiduciary net position - beginning 57,925,689 55,259,554 52,349,036 48,767,683 Plan fiduciary net position - ending (b) 71,133,066 57,925,689 55,259,554 52,349,036 Plan net pension liability - ending (a) - (b) 13,482,230 $ 22,596,356 $ 22,028,168 $ 21,179,193 $ Plan fiduciary net position as a
percentage of the total pension liability 84.07% 71.94% 71.50% 71.20% Covered payroll 10,892,012 $ 9,973,996 $ 9,336,874 $ 8,523,335 $ Net pension liability as a percentage of
covered payroll 123.78% 226.55% 235.93% 248.48%
* Fiscal year 2015 was the first year of implementation; additional information will be presented as it becomes available. ** Covered payroll is based on pensionable earnings per CalPERS for 2014

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-97-
2) Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years* (continued)
Measurement Measurement Measurement Measurement
Date Date Date Date
June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014** $ 1,318,758 1,472,818 $ 1,295,229 $ 1,290,965 $
4,610,554 4,762,222 4,439,809 4,254,542
- 4,016,681 (1,091,497) -
(505,685) (618,862) (236,444) -
(3,046,770) (3,089,914) (2,971,575) (2,848,785)
2,376,857 6,542,945 1,435,522 2,696,722
61,638,374 64,015,231 60,202,852 57,506,130
64,015,231 70,558,176 61,638,374 60,202,852
1,186,312 1,483,366 1,121,845 1,245,275
979,418 1,062,547 925,172 636,643
222,302 4,935,247 944,792 6,731,502
(3,046,770) (3,089,914) (2,971,575) (2,848,785)
- - - -
(27,503) (65,616) - -
- - - -
(686,241) 4,325,630 20,234 5,764,635
45,128,294 44,442,053 45,108,060 39,343,425
44,442,053 48,767,683 45,128,294 45,108,060
$ 19,573,178 21,790,493 $ 16,510,080 $ 15,094,792 $

69.12% 69.42% 73.21% 74.93%
$ 8,331,278 8,519,800 $ 7,983,907 $ 7,672,440 $
255.76% 234.94% 206.79% 196.74%

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-98-
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: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2020 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes of Assumptions: There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. 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.

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-99-
3) Schedule of Pension Contributions – Last 10 Years*
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Actuarially determined contribution 2,412,234 $ 2,270,954 $ 2,001,025 $ 1,706,948 $ Contributions in relation to the
actuarially determined contributions (2,692,503) (2,329,240) (2,329,240) (2,063,002) Contribution deficiency (excess) (280,269) $ (58,286) $ (328,215) $ (356,054) $ Covered payroll 10,785,880 $ 10,892,012 $ 9,973,996 $ 9,336,874 $ Contributions as a percentage of covered
payroll 24.96% 21.38% 23.35% 22.10%
*Fiscal year 2015 was the first year of implementation; additional information will be presented as it becomes available.

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-100-
3) Schedule of Pension Contributions – Last 10 Years* (continued) June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 $ 1,268,816 1,417,449 $ 1,186,312 $ 1,121,845 $
(1,483,366) (1,833,255) (1,186,312) (1,121,845)
$ (214,550) (415,806) $ - $ - $
$ 8,519,800 8,523,335 $ 8,331,278 $ 7,983,907 $

21.51% 17.41% 14.24% 14.05%
Notes to Schedule of Pension Contributions
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Amortization Method Level Percent of Payroll
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
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)Net of pension plan investment and administrative expenses, including inflation.

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-101-
4) Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years* Measurement Measurement Measurement Measurement Measurement Date Date Date Date Date
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability
Service cost 432,681 $ 514,178 $ 1,041,877 $ 1,616,456 $ 1,559,082 $ Interest on total OPEB liability 1,102,167 1,081,753 1,103,430 1,051,971 879,863 Differences between expected and
actual experience (17,234) (738,379) (3,081,922) (2,643,488) - Changes in assumptions 554,630 (1,509,066) (4,249,457) (3,754,316) (3,742,978) Benefit payments, including refunds of
employee contributions (697,659) (688,476) (708,272) (701,025) (734,912) Net change in total OPEB liability 1,374,585 (1,339,990) (5,894,344) (4,430,402) (2,038,945) Total OPEB liability - beginning 15,655,497 16,995,487 22,889,831 27,320,233 29,359,178 Total OPEB liability - ending (a) 17,030,082 15,655,497 16,995,487 22,889,831 27,320,233 Plan Fiduciary Net Position
Contributions - employer 997,659 919,194 942,684 935,437 1,170,145 Net investment income 304,626 22,861 57,133 17,983 (1,266) Benefit payments, including refunds of
employee contributions (697,659) (688,476) (708,272) (701,025) (935,739) Administrative expense (436) (437) (133) (184) (1)
Other - - - (309) -
Net change in plan fiduciary net position 604,190 253,142 291,412 251,902 233,139 Plan fiduciary net position - beginning 1,029,595 776,453 485,041 233,139 - Plan fiduciary net position - ending (b) 1,633,785 1,029,595 776,453 485,041 233,139 Net OPEB liability - ending (a) - (b) 15,396,297 $ 14,625,902 $ 16,219,034 $ 22,404,790 $ 27,087,094 $ Plan fiduciary net position as a percentage
of the total OPEB liability 9.59% 6.58% 4.57% 2.12% 0.85% Covered payroll 10,892,012 9,973,996 9,336,874 8,523,335 8,519,800 Net OPEB liability as a percentage of
covered payroll 141.35% 146.64% 173.71% 262.86% 317.93% *Fiscal year 2018 was the first year of implementation; additional information will be presented as it becomes available.

City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2022
-102-
5) Schedule of OPEB Contributions – Last 10 Years*
Fiscal year ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 2,290,449 $ 919,194 $ 1,909,606 $ 2,107,584 $ 2,088,038 $ Contributions in relation to the
actuarially determined contributions (683,193) $ (599,730) (771,379) (832,398) (1,170,151) Contribution deficiency (excess) 1,607,256 $ 319,464 $ 1,138,227 $ 1,275,186 $ 917,887 $ Covered payroll 12,224,264 $ 10,892,012 $ 9,973,996 $ 9,336,874 $ 8,523,335 $ Contributions as a percentage of
covered payroll 5.59% 5.51% 7.73% 8.92% 13.73%
*Fiscal year 2018 was the first year of implementation; additional information will be presented as it becomes available.

Notes to Schedule of OPEB Contributions
Valuation Date December 31, 2021
Measurement Date June 30, 2021
Amortization Method Level Percent of Payroll
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.80%
Inflation 2.50%
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
Notes to Required Supplementary Information (Unaudited) For the Fiscal Year Ended June 30, 2022
-103-
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.

City of Yorba Linda
Notes to Required Supplementary Information (Unaudited) For the Fiscal Year Ended June 30, 2022
-104-
2) EXCESS OF APPROPRIATIONS
The following major funds have expenditures in excess of the appropriations:

Excess Of
Final Budgeted Actual Expenditures Over
Expenditures Expenditures Budgeted Amounts
Major fund:

Public Library
Debt service
Principal retirement 515,000 $ 540,000 $ (25,000) $

OTHER SUPPLEMENTARY

INFORMATION

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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, 2022
-105-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Expenditures
Capital outlay - $ 37,439,970 $ 12,356,181 $ 25,083,789 $ Total expenditures 37,439,970 - 12,356,181 25,083,789
Excess of Revenues over
(under) Expenditures - (37,439,970) (12,356,181) 25,083,789 Other financing sources (uses):

Transfers in - 36,390,550 12,356,181 24,034,369
Total other financing sources (uses) - 36,390,550 12,356,181 24,034,369 Net change in fund balance - (1,049,420) - (1,049,420)
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year - $ (1,049,420) $ - $ (1,049,420) $

City of Yorba Linda
Description of Nonmajor Funds
For the Fiscal Year Ended June 30, 2022
-106-
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. There was no legally adopted budget for this fund for the fiscal year ending June 30, 2022.

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 Account 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
Description of Nonmajor Funds
For the Fiscal Year Ended June 30, 2022
-107-
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. There was no legally adopted budget for this fund for the fiscal year ending June 30, 2022.

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, 2022
-108-

Traffic CDBG
Gas Tax Safety Grant
Assets:

Pooled cash and investments 4,344,321 $ - $ - $
Receivables:

Accounts - - -
Accrued interest 3,061 - -
Advances to other funds - - -
Due from other governments 127,549 1,921 78,691
Total assets $ 1,921 4,474,931 $ 78,691 $
Liabilities and fund balances
Liabilities:

Accounts payable - $ - $ 8,400 $
Due to other funds - 1,921 70,291
Total liabilities 1,921 - 78,691
Deferred inflows of resources:

Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund balances:

Restricted for:

General government - - -
Parks and recreation - - -
Public works 4,474,931 - -
Low and moderate housing - - -
Unassigned (deficit) - - -
Total fund balances - 4,474,931 -
Total liabilities and fund balances $ 1,921 4,474,931 $ 78,691 $ Special Revenue Funds

City of Yorba Linda
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-109-
Citizens
Option Public Measure Covid-19
Safety AQMD M2 SB-2 Grant
$ 1,073,679 - $ 3,143,913 $ - $ - $
- - - - -
2,588 - 7,241 - -
- - - - -
22,314 - 235,230 92,886 -
$ 1,098,581 - $ 3,386,384 $ 92,886 $ - $
$ - - $ - $ - $ - $
- - - 92,886 -
- - - 92,886 -
- - - 92,886 -
- - - 92,886 -
- - - - -
- - - - -
1,098,581 - 3,386,384 - -
- - - - -
- - - (92,886) -
1,098,581 - 3,386,384 (92,886) -
$ 1,098,581 - $ 3,386,384 $ 92,886 $ - $
Special Revenue Funds

City of Yorba Linda
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-110-
Mortgage Road Maintenance
Assistance and Rehabilitation
Program PEG Account
Assets:

Pooled cash and investments 80,092 $ 197,533 $ 819,208 $ Receivables:

Accounts - 35,394 -
Accrued interest 975 73 (188)
Advances to other funds - - -
Due from other governments - - 236,972
Total assets $ 233,000 81,067 $ 1,055,992 $
Liabilities and fund balances
Liabilities:

Accounts payable - $ 1,380 $ - $
Due to other funds - - -
Total liabilities 1,380 - -
Deferred inflows of resources:

Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund balances:

Restricted for:

General government - 231,620 -
Parks and recreation - - -
Public works - - 1,055,992
Low and moderate housing 81,067 - -
Unassigned (deficit) - - -
Total fund balances 231,620 81,067 1,055,992
Total liabilities and fund balances (deficit) $ 233,000 81,067 $ 1,055,992 $ Special Revenue Funds

City of Yorba Linda
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-111-
Total
Lighting and Traffic Nonmajor
Parking Park Signal Project Master Plan Signal Governmental In-Lieu In-Lieu Improvements of Drainage Improvements Funds $ 2,016,362 27,369 $ 1,053,827 $ 5,207,453 $ 1,587,966 $ 19,551,723 $ - - - - - 35,394
2,328 (558) (217) 19,006 2,918 37,227
- - - 1,840,000 - 1,840,000
- - - - - 795,563
$ 2,018,690 26,811 $ 1,053,610 $ 7,066,459 $ 1,590,884 $ 22,259,907 $ $ - - $ - $ - $ 11,854 $ 21,634 $
- - - - - 165,098
- - - - 11,854 186,732
- - - - - 92,886
- - - - - 92,886
- - - - - 231,620
2,018,690 - - - - 2,018,690
- 26,811 1,053,610 7,066,459 1,579,030 19,741,798
- - - - - 81,067
- - - - - (92,886)
2,018,690 26,811 1,053,610 7,066,459 1,579,030 21,980,289 $ 2,018,690 26,811 $ 1,053,610 $ 7,066,459 $ 1,590,884 $ 22,259,907 $ Capital Projects Funds

City of Yorba Linda
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2022
-112-
Traffic CDBG
Gas Tax Safety Grant
Revenues:

Taxes - $ - $ - $
Intergovernmental 1,608,818 - 130,159
Investment income (120,098) - -
Fines and forfeitures - 48,615 -
Developer participation - - -
Total revenues 48,615 1,488,720 130,159
Expenditures:

Current:

General government - - -
Community development - - 130,159
Parks and recreation - - -
Capital outlay - net current - - -
Total expenditures - - 130,159
Excess (deficiency) of revenues
over (under) expenditures 1,488,720 48,615 -
Other financing sources (uses):

Transfers in - - -
Transfers out (1,536,368) (48,615) -
Total other financing sources (uses) (48,615) (1,536,368) - Net change in fund balances (47,648) - -
Fund balances (deficit) at beginning of fiscal year 4,522,579 - - Fund balances (deficit) at end of fiscal year $ - 4,474,931 $ - $ Special Revenue Funds

City of Yorba Linda
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2022 (continued)
-113-
Citizens
Option Public Measure COVID-19
Safety AQMD M2 SB-2 Grant
$ - - $ - $ - $ - $
87,380 167,848 1,347,640 - 399,950
(30,391) - (90,347) - -
- - - - -
- - - - -
56,989 167,848 1,257,293 - 399,950
- - - - 20,000
- - - - -
- - - - 205,432
- - - - 12,000
- - - - 237,432
56,989 167,848 1,257,293 - 162,518
- - - - -
(42,711) (167,848) (1,296,350) - (1,698)
(42,711) (167,848) (1,296,350) - (1,698)
14,278 - (39,057) - 160,820
1,084,303 - 3,425,441 (92,886) (160,820)
$ 1,098,581 - $ 3,386,384 $ (92,886) $ - $
Special Revenue Funds

City of Yorba Linda
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2022
-114-
Mortgage Road Maintenance
Assistance and Rehabilitation
Program PEG Account
Revenues:

Taxes - $ 139,081 $ - $
Intergovernmental - - 1,367,884
Investment income (2,529) (5,849) 11,708
Fines and forfeitures - - -
Developer participation - - -
Total revenues 133,232 (2,529) 1,379,592
Expenditures:

Current:

General government - 51,467 -
Community development 100,000 - -
Parks and recreation - - -
Capital outlay - net current - 2,133 -
Total expenditures 53,600 100,000 -
Excess (deficiency) of revenues
over (under) expenditures (102,529) 79,632 1,379,592
Other financing sources (uses):

Transfers in - - -
Transfers out - (9,087) (1,665,718)
Total other financing sources (uses) (9,087) - (1,665,718) Net change in fund balances (102,529) 70,545 (286,126)
Fund balances (deficit) at beginning of fiscal year 183,596 161,075 1,342,118 Fund balances (deficit) at end of fiscal year $ 231,620 81,067 $ 1,055,992 $ Special Revenue Funds

City of Yorba Linda
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2022
-115-
Total
Lighting and Traffic Nonmajor
Parking Park Signal Project Master Plan Signal Governmental In-Lieu In-Lieu Improvements of Drainage Improvements Funds $ - - $ - $ - $ - $ 139,081 $
- - - - - 5,109,679
(101,257) (787) (25,022) (134,569) (48,113) (547,254)
- - - - - 48,615
1,563,827 - - - 138,819 1,702,646
1,462,570 (787) (25,022) (134,569) 90,706 6,452,767
- - - - - 71,467
- - - - - 230,159
- - - - - 205,432
- - - - 16,957 31,090
- - - - 16,957 538,148
1,462,570 (787) (25,022) (134,569) 73,749 5,914,619
- - 144,389 - - 144,389
(5,240,295) - (39,473) (149,494) (120,285) (10,317,942) (5,240,295) - 104,916 (149,494) (120,285) (10,173,553)
(3,777,725) (787) 79,894 (284,063) (46,536) (4,258,934) 5,796,415 27,598 973,716 7,350,522 1,625,566 26,239,223 $ 2,018,690 26,811 $ 1,053,610 $ 7,066,459 $ 1,579,030 $ 21,980,289 $ Capital Projects Funds

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Gas Tax Special Revenue Fund
Fiscal Year Ended June 30, 2022
-116-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 1,659,413 $ 1,608,818 $ (50,595) $
Investment income 35,000 (120,098) (155,098)
Total revenues 1,488,720 1,694,413 (205,693)
Other financing sources (uses)
Transfers out (5,668,947) (1,536,368) 4,132,579
Total other financing sources (uses) (1,536,368) (5,668,947) 4,132,579 Net change in fund balance (3,974,534) (47,648) 3,926,886 Fund balance at beginning of fiscal year 4,522,579 4,522,579 - Fund balance at end of fiscal year 548,045 $ 4,474,931 $ 3,926,886 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Traffic Safety Special Revenue Fund
Fiscal Year Ended June 30, 2022
-117-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Fines and forfeitures 70,000 $ 48,615 $ (21,385) $
Total revenues 48,615 70,000 (21,385)
Other financing sources (uses)
Transfers out (70,000) (48,615) 21,385
Total other financing sources (uses) (48,615) (70,000) 21,385 Net change in fund balance - - -
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year - $ - $ - $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CDBG Grant Special Revenue Fund
Fiscal Year Ended June 30, 2022
-118-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 258,530 $ 130,159 $ (128,371) $
Total revenues 130,159 258,530 (128,371)
Expenditures
Community development 260,075 130,159 129,916
Total expenditures 130,159 260,075 129,916
Excess (Deficiency) of Revenues
over (under) Expenditures (1,545) - 1,545
Other financing sources (uses)
Transfers out (65,000) - 65,000
Total other financing sources (uses) - (65,000) 65,000
Net change in fund balance (66,545) - 66,545
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year (66,545) $ - $ 66,545 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Citizens Option for Public Safety Special Revenue Fund
Fiscal Year Ended June 30, 2022
-119-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 170,000 $ 167,848 $ (2,152) $
Investment income 750 - (750)
Total revenues 167,848 170,750 (2,902)
Other financing sources (uses)
Transfers out (170,750) (167,848) 2,902
Total other financing sources (uses) (167,848) (170,750) 2,902 Net change in fund balance - - -
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year - $ - $ - $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual AQMD Special Revenue Fund
Fiscal Year Ended June 30, 2022
-120-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 85,000 $ 87,380 $ 2,380 $
Investment income 7,600 (30,391) (37,991)
Total revenues 56,989 92,600 (35,611)
Expenditures
Capital outlay 400,000 - 400,000
Total expenditures - 400,000 400,000
Excess (Deficiency) of Revenues
over (under) Expenditures (307,400) 56,989 364,389
Other financing sources (uses)
Transfers out (132,000) (42,711) 89,289
Total other financing sources (uses) (42,711) (132,000) 89,289 Net change in fund balance (439,400) 14,278 453,678
Fund balance at beginning of fiscal year 1,084,303 1,084,303 - Fund balance at end of fiscal year 644,903 $ 1,098,581 $ 453,678 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Measure M2 Special Revenue Fund
Fiscal Year Ended June 30, 2022
-121-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 1,020,602 $ 1,347,640 $ 327,038 $
Investment income 25,000 (90,347) (115,347)
Total revenues 1,257,293 1,045,602 211,691
Expenditures
Capital outlay 4,451 - 4,451
Total expenditures - 4,451 4,451
Excess (Deficiency) of Revenues
over (under) Expenditures 1,041,151 1,257,293 216,142
Other financing sources (uses)
Transfers out (3,469,351) (1,296,350) 2,173,001
Total other financing sources (uses) (1,296,350) (3,469,351) 2,173,001 Net change in fund balance (2,428,200) (39,057) 2,389,143 Fund balance at beginning of fiscal year 3,425,441 3,425,441 - Fund balance at end of fiscal year 997,241 $ 3,386,384 $ 2,389,143 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual COVID-19 Grant Special Revenue Fund
Fiscal Year Ended June 30, 2022
-122-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental - $ 399,950 $ 399,950 $
Total revenues 399,950 - 399,950
Expenditures
General government 20,000 20,000 -
Parks and recreation 205,432 205,432 -
Capital outlay 12,000 12,000 -
Total expenditures 237,432 237,432 -
Excess (Deficiency) of Revenues
over (under) Expenditures (237,432) 162,518 399,950
Other financing sources (uses)
Transfers out (1,698) (1,698) -
Total other financing sources (uses) (1,698) (1,698) -
Net change in fund balance (239,130) 160,820 399,950
Fund balance at beginning of fiscal year (160,820) (160,820) - Fund balance at end of fiscal year (399,950) $ - $ 399,950 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Mortgage Assistance Program Special Revenue Fund
Fiscal Year Ended June 30, 2022
-123-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 1,800 $ (2,529) $ (4,329) $
Total revenues (2,529) 1,800 (4,329)
Expenditures
Community development 166,846 100,000 66,846
Total expenditures 100,000 166,846 66,846
Excess (Deficiency) of Revenues over
(under) Expenditures (165,046) (102,529) 62,517
Net change in fund balance (165,046) (102,529) 62,517
Fund balance at beginning of fiscal year 183,596 183,596 - Fund balance at end of fiscal year 18,550 $ 81,067 $ 62,517 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual PEG Special Revenue Fund
Fiscal Year Ended June 30, 2022
-124-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Taxes 145,500 $ 139,081 $ (6,419) $
Investment income 3,000 (5,849) (8,849)
Total revenues 133,232 148,500 (15,268)
Expenditures
General government 70,800 51,467 19,333
Capital outlay 5,000 2,133 2,867
Total expenditures 53,600 75,800 22,200
Excess (Deficiency) of Revenues
over (under) Expenditures 72,700 79,632 6,932
Other financing sources (uses)
Transfers out (9,087) (9,087) -
Total other financing sources (uses) (9,087) (9,087) -
Net change in fund balance 63,613 70,545 6,932
Fund balance at beginning of fiscal year 161,075 161,075 - Fund balance at end of fiscal year 224,688 $ 231,620 $ 6,932 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Road Maintenance and Rehabilitation Special Revenue Fund Fiscal Year Ended June 30, 2022
-125-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Intergovernmental 1,342,838 $ 1,367,884 $ 25,046 $
Investment income 7,500 11,708 4,208
Total revenues 1,379,592 1,350,338 29,254
Other financing sources (uses)
Transfers out (2,745,033) (1,665,718) 1,079,315
Total other financing sources (uses) (1,665,718) (2,745,033) 1,079,315 Net change in fund balance (1,394,695) (286,126) 1,108,569 Fund balance at beginning of fiscal year 1,342,118 1,342,118 - Fund balance at end of fiscal year (52,577) $ 1,055,992 $ 1,108,569 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Park In-Lieu Capital Projects Fund
Fiscal Year Ended June 30, 2022
-126-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 44,000 $ (101,257) $ (145,257) $
Developer participation - 1,563,827 1,563,827
Total revenues 1,462,570 44,000 1,418,570
Other financing sources (uses)
Transfers out (6,677,466) (5,240,295) 1,437,171
Total other financing sources (uses) (5,240,295) (6,677,466) 1,437,171 Net change in fund balance (6,633,466) (3,777,725) 2,855,741 Fund balance at beginning of fiscal year 5,796,415 5,796,415 - Fund balance at end of fiscal year (837,051) $ 2,018,690 $ 2,855,741 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Lighting and Signal Project Improvements Capital Projects Fund Fiscal Year Ended June 30, 2022
-127-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 5,800 $ (25,022) $ (30,822) $
Total revenues (25,022) 5,800 (30,822)
Other financing sources (uses)
Transfers in - 144,389 144,389
Transfers out (54,604) (39,473) (15,131)
Total other financing sources (uses) 104,916 (54,604) 159,520 Net change in fund balance (48,804) 79,894 128,698
Fund balance at beginning of fiscal year 973,716 973,716 - Fund balance at end of fiscal year 924,912 $ 1,053,610 $ 128,698 $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Master Plan of Drainage Capital Projects Fund
Fiscal Year Ended June 30, 2022
-128-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 38,000 $ (134,569) $ (172,569) $
Total revenues (134,569) 38,000 (172,569)
Other financing sources (uses)
Transfers out (193,057) (149,494) 43,563
Total other financing sources (uses) (149,494) (193,057) 43,563 Net change in fund balance (155,057) (284,063) (129,006) Fund balance at beginning of fiscal year 7,350,522 7,350,522 - Fund balance at end of fiscal year 7,195,465 $ 7,066,459 $ (129,006) $

City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Traffic Signal Improvements Capital Projects Fund
Fiscal Year Ended June 30, 2022
-129-
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
Revenues
Investment income 15,800 $ (48,113) $ (63,913) $
Developer participation - 138,819 138,819
Total revenues 90,706 15,800 74,906
Expenditures
Capital outlay 21,410 16,957 4,453
Total expenditures 16,957 21,410 4,453
Excess (Deficiency) of Revenues
over (under) Expenditures (5,610) 73,749 79,359
Other financing sources (uses)
Transfers out (989,468) (120,285) 869,183
Total other financing sources (uses) (120,285) (989,468) 869,183 Net change in fund balance (995,078) (46,536) 948,542
Fund balance at beginning of fiscal year 1,625,566 1,625,566 - Fund balance at end of fiscal year 630,488 $ 1,579,030 $ 948,542 $

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STATISICAL SECTION

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City of Yorba Linda
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-130-
Fiscal Year
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets 365,798,892 $ 368,711,483 $ 369,642,916 $ 375,388,766 $ 376,813,472 $ Restricted 69,343,128 73,066,968 78,795,131 84,293,217 88,147,090 Unrestricted (deficit) 44,899,948 46,198,664 31,529,685 28,716,148 30,924,813 Total governmental activities net position 480,041,968 $ 487,977,115 $ 479,967,732 $ 488,398,131 $ 495,885,375 $ Business-type activities:

Net investment in capital assets 12,092,484 $ 7,567,000 $ 6,425,228 $ 5,780,632 $ 25,162,397 $ Restricted - - - - -
Unrestricted (deficit) (9,581,881) (5,563,647) (5,045,542) (3,721,769) (23,363,950) Total business-type activities net assets 2,510,603 $ 2,003,353 $ 1,379,686 $ 2,058,863 $ 1,798,447 $ Primary Government:

Net investment in capital assets 377,891,376 $ 376,278,483 $ 376,068,144 $ 381,169,398 $ 401,975,869 $ Restricted 69,343,128 73,066,968 78,795,131 84,293,217 88,147,090 Unrestricted (deficit) 35,318,067 40,635,017 26,484,143 24,994,379 7,560,863 Total primary government net assets 482,552,571 $ 489,980,468 $ 481,347,418 $ 490,456,994 $ 497,683,822 $ Source: City of Yorba Linda, Finance Department

City of Yorba Linda
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-131-
Fiscal Year
2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets 393,042,394 $ 380,956,770 $ 404,615,432 $ 424,485,221 $ 437,983,501 $ Restricted 89,319,318 108,594,404 95,479,106 87,730,127 85,472,395 Unrestricted (deficit) 2,056,587 9,383,520 (8,718,665) (5,602,336) 3,052,522 Total governmental activities net position 484,418,299 $ 498,934,694 $ 491,375,873 $ 506,613,012 $ 526,508,418 $ Business-type activities:

Net investment in capital assets 24,442,477 $ 23,846,232 $ 23,323,238 $ 23,039,783 $ 21,676,512 $ Restricted - - - - -
Unrestricted (deficit) (22,918,767) (22,995,261) (2,543,666) (2,376,682) (1,170,490) Total business-type activities net assets 1,523,710 $ 850,971 $ 20,779,572 $ 20,663,101 $ 20,506,022 $ Primary Government:

Net investment in capital assets 417,484,871 $ 404,803,002 $ 427,938,670 $ 447,525,004 $ 459,660,013 $ Restricted 89,319,318 108,594,404 95,479,106 87,730,127 85,472,395 Unrestricted (deficit) (20,862,180) (13,611,741) (11,262,331) (7,979,018) 1,882,032 Total primary government net assets 485,942,009 $ 499,785,665 $ 512,155,445 $ 527,276,113 $ 547,014,440 $ Source: City of Yorba Linda, Finance Department

City of Yorba Linda
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-132-
Fiscal Year
2013 2014 2015 2016 2017
Expenses
Governmental activities:

General government 9,389,912 $ 9,882,765 $ 9,589,107 $ 11,181,226 $ 10,794,754 $ Public safety 9,748,242 10,819,766 9,625,078 10,194,206 10,751,963 Community development 2,947,842 4,248,543 3,301,567 3,307,460 3,076,508 Recreation and community services 6,412,609 5,891,506 6,893,996 6,829,957 7,401,076 Library - - - - -
Public works 23,195,904 14,978,073 14,666,439 13,659,070 22,728,098 Contributions from other governments 679,782 - - - -
Interest on long-term debt - - - - -
Total governmental activites expenses 52,374,291 45,820,653 44,076,187 45,171,919 54,752,399 Business-type activities:

Golf Course 6,365,717 6,395,656 6,105,749 5,692,893 6,043,094 Disposal 5,164,390 5,188,805 3,889,115 - -
Yorba Linda Center Catering 120,977 156,894 176,712 174,854 179,229 Total business-type activities expenses 11,651,084 11,741,355 10,171,576 5,867,747 6,222,323 Total primary government expenses 64,025,375 57,562,008 54,247,763 51,039,666 60,974,722 Program Revenues
Governmental activities:

Charges for services
General government 1,234,855 826,650 838,008 975,797 1,053,695 Public safety 174,508 142,843 134,503 128,051 130,010
Community development 2,013,659 2,042,831 2,786,159 2,284,965 2,444,166 Recreation and community services 1,806,052 2,070,339 3,165,573 2,853,198 3,040,194 Library - - - - -
Public works 420,871 306,689 660,693 1,573,551 349,656
Operating grants and contributions 5,383,963 3,144,728 2,471,970 1,850,120 1,972,296 Capital grants and contributions 685,434 8,301,311 4,451,347 3,687,861 4,917,936 Total governmental activites program revenues 11,719,342 16,835,391 14,508,253 13,353,543 13,907,953 Business-type activities:

Charges for services:

Golf Course 5,670,123 5,799,564 5,886,365 5,811,759 5,779,197 Refuse 5,065,036 5,332,477 3,956,222 - -
Yorba Linda Center Catering 29,481 101,816 133,888 184,185 170,462 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 10,764,640 11,233,857 9,976,475 5,995,944 5,949,659 Total primary government program revenues 22,483,982 28,069,248 24,484,728 19,349,487 19,857,612 Net (expense)/revenue
Governmental activities (40,654,949) (28,985,262) (29,567,934) (31,818,376) (40,844,446) Business-type activities (886,444) (507,498) (195,101) 128,197 (272,664) Total net revenues (expenses) (41,541,393) (29,492,760) (29,763,035) (31,690,179) (41,117,110)

City of Yorba Linda
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-133-
Fiscal Year
2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government 8,604,233 $ 7,182,245 $ 7,850,800 $ 9,360,113 $ 10,455,564 $ Public safety 11,691,912 11,839,819 12,455,656 11,755,722 13,188,544 Community development 9,363,144 2,864,767 3,329,740 2,705,644 3,412,017 Recreation and community services 7,535,284 7,431,280 6,762,170 6,623,647 11,422,317 Library 3,967,009 4,746,418 5,262,202 4,780,791 5,169,332 Public works 11,202,747 21,174,891 19,646,992 14,300,587 14,175,743 Contributions from other governments - - - - -
Interest on long-term debt - - - 108,271 277,954
Total governmental activites expenses 52,364,329 55,239,420 55,307,560 49,634,775 58,101,471 Business-type activities:

Golf Course 6,092,497 6,709,630 6,298,218 6,695,753 9,262,348 Disposal - - - - -
Yorba Linda Center Catering 220,618 200,518 - - -
Total business-type activities expenses 6,313,115 6,910,148 6,298,218 6,695,753 9,262,348 Total primary government expenses 58,677,444 62,149,568 61,605,778 56,330,528 67,363,819 Program Revenues
Governmental activities:

Charges for services
General government 1,127,014 1,479,021 4,399 10,769 7,662,179 Public safety 838 - 40,733 56,807 90,709
Community development 516,178 55,380 1,643,000 2,007,274 2,600,154 Recreation and community services 1,838,992 1,835,129 1,149,503 1,065,415 2,441,850 Library 110,951 130,000 90,262 15,390 176,212
Public works 189,317 329,930 221,495 304,666 346,179
Operating grants and contributions 3,938,022 3,923,715 5,136,854 3,474,747 5,361,712 Capital grants and contributions 3,011,719 12,158,579 7,025,870 5,418,821 6,921,650 Total governmental activites program revenues 10,733,031 19,911,754 15,312,116 12,353,889 25,600,645 Business-type activities:

Charges for services:

Golf Course 5,824,698 6,042,347 5,455,174 6,526,689 9,138,075 Refuse - - - - -
Yorba Linda Center Catering 209,615 195,062 - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities program revenues 6,034,313 6,237,409 5,455,174 6,526,689 9,138,075 Total primary government program revenues 16,767,344 26,149,163 20,767,290 18,880,578 34,738,720 Net (expense)/revenue
Governmental activities (41,631,298) (35,327,666) (39,995,444) (37,280,886) (32,500,826) Business-type activities (278,802) (672,739) (843,044) (169,064) (124,273) Total net revenues (expenses) (41,910,100) (36,000,405) (40,838,488) (37,449,950) (32,625,099)

City of Yorba Linda
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-134-
Fiscal Year
2013 2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental activities:

Property taxes 19,209,305 $ 19,463,202 $ 20,803,253 $ 22,256,451 $ 23,301,893 $ Sales taxes 5,668,119 6,108,523 6,515,766 7,215,608 7,666,640 Franchise taxes 2,088,406 2,086,354 2,239,149 2,271,901 1,949,679 Transient occupancy taxes - 434,583 442,656 488,437 482,652 Business licenses taxes 335,799 433,511 378,306 395,184 418,008 Other taxes 7,032,922 6,810,919 6,903,837 6,995,040 7,340,671 Motor vehicle in lieu, unrestricted 35,511 29,389 28,389 27,323 30,300 Investment income (125,819) 699,314 577,480 559,845 562,730 Other 1,005,264 854,614 411,483 172,973 394,295
Gain on sale of capital assets - - - - 294,375
Insurance recoveries - - - - -
Transfers - - - (550,980) (12,248)
Extraordinary gain/(loss) on dissolution of RDA - - - - - Total governmental activities 35,249,507 36,920,409 38,300,319 39,831,782 42,428,995 Business-type activities:

Investment income 11,358 248 681 - -
Other - - - - -
Transfers - - - 550,980 12,248
Gain on sale of capital assets 69,600 - - - -
Total business-type activities 80,958 248 681 550,980 12,248 Total primary government 35,330,465 36,920,657 38,301,000 40,382,762 42,441,243 Changes in Net Position
Governmental activities (5,405,442) 7,935,147 8,732,385 8,013,406 1,584,549 Business-type activities (805,486) (507,250) (194,420) 679,177 (260,416) Total primary government (6,210,928) $ 7,427,897 $ 8,537,965 $ 8,692,583 $ 1,324,133 $ Note: * In fiscal year 2017-2018 the City began reporting library services separarately from General Govenrment.

Source: City of Yorba Linda, Finance Department

City of Yorba Linda
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-135-
Fiscal Year
2018 2019 2020 2021 2022
General Revenues and Other Changes in Net Position
Governmental activities:

Property taxes 24,724,246 $ 26,867,452 $ 27,909,436 $ 29,540,612 $ 30,699,489 $ Sales taxes 7,426,486 7,461,391 7,531,434 7,595,867 8,936,655 Franchise taxes 2,101,241 2,093,989 2,102,927 2,172,656 2,265,614 Transient occupancy taxes 487,217 498,253 390,641 311,017 497,046 Business licenses taxes 385,676 416,275 518,592 487,243 385,104 Other taxes 8,392,701 7,601,071 7,542,323 8,010,697 950,139 Motor vehicle in lieu, unrestricted 35,736 33,178 54,378 50,350 81,515 Investment income 5,448,994 3,414,409 3,799,085 718,564 (1,594,916) Other 880,542 511,547 252,809 267,470 225,159
Gain on sale of capital assets 14,257 10,759 3,106,643 3,363,548 9,950,427 Insurance recoveries - - - - -
Transfers - - (20,771,645) - -
Extraordinary gain/(loss) on dissolution of RDA - - - - - Total governmental activities 49,897,096 48,908,324 32,436,623 52,518,024 52,396,232 Business-type activities:

Investment income - - - 43,292 (32,806)
Other - - - - -
Transfers - - 20,771,645 - -
Gain on sale of capital assets 4,065 - - 9,301 -
Total business-type activities 4,065 - 20,771,645 52,593 (32,806) Total primary government 49,901,161 48,908,324 53,208,268 52,570,617 52,363,426 Changes in Net Position
Governmental activities 8,265,798 13,580,658 (7,558,821) 15,237,139 19,895,406 Business-type activities (274,737) (672,739) 19,928,601 (116,471) (157,079) Total primary government 7,991,061 $ 12,907,919 $ 12,369,780 $ 15,120,668 $ 19,738,327 $ Note: * In fiscal year 2017-2018 the City began reporting library services separarately from General Govenrment.

Source: City of Yorba Linda, Finance Department

City of Yorba Linda
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-136-
Fiscal Year
2013 2014 2015 2016 2017
General Fund
Nonspendable $ 11,616,699 $ 25,609,575 $ 25,879,553 $ 25,615,978 $ 25,360,804 Committed - - 23,125,506 23,143,531 23,096,672
Restricted - 7,500 5,352 - -
Assigned - - 3,750,035 2,810,864 6,026,646
Unassigned 39,220,264 27,434,921 2,987,075 4,694,175 3,952,237 Total General Fund 50,836,963 53,051,996 55,747,521 56,264,548 58,436,359 All Other Governmental Funds
Nonspendable 3,831,706 3,821,809 2,164 465 1,304
Restricted 57,887,165 61,518,726 78,712,066 83,854,496 87,562,146 Assigned 7,624,257 7,739,067 - - -
Unassigned (426,175) (413,540) (489,090) (1,988,163) (849,737) Total All Other Governmental Funds 68,916,953 72,666,062 78,225,140 81,866,798 86,713,713 Total All Governmental Funds $ 119,753,916 $ 125,718,058 $ 133,972,661 $ 138,131,346 $ 145,150,072 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

City of Yorba Linda
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-137-
Fiscal Year
2018 2019 2020 2021 2022
General Fund
Nonspendable $ 25,134,611 $ 24,183,522 $ $ 627,888 2,850,846 $ 33,115 Committed 18,554,579 23,252,150 27,742,190 31,713,494 31,849,609 Restricted - - - - -
Assigned 3,198,889 2,115,847 2,208,551 1,102,561 2,024,793 Unassigned 3,936,830 4,953,048 3,755,960 3,736,843 8,698,134 Total General Fund 50,824,909 54,504,567 36,557,547 37,180,786 42,605,651 All Other Governmental Funds
Nonspendable 20,567 34,219 4,702 4,611 -
Restricted 89,319,318 86,530,414 68,696,921 87,730,127 85,472,395 Assigned - - - - -
Unassigned (794,022) (179,022) (725,130) (799,966) (330,625) Total All Other Governmental Funds 88,545,863 86,385,611 67,976,493 86,934,772 85,141,770 Total All Governmental Funds $ 139,370,772 $ 140,890,178 $ $ 124,115,558 104,534,040 $ 127,747,421 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

City of Yorba Linda
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-138-
Fiscal Year
2013 2014 2015 2016 2017
Revenues
Taxes 34,290,577 $ 35,274,571 $ 37,304,207 $ 39,622,621 $ 41,311,999 $ Licenses and permits 1,944,412 1,794,234 1,822,533 1,681,175 1,906,900 Intergovernmental 3,919,378 4,882,336 3,877,534 3,550,775 4,911,723 Charges for services 3,148,441 3,202,764 3,724,560 3,636,143 3,670,482 Investment Income (125,819) 699,314 525,717 476,108 561,578 Fines and forfeitures 217,395 186,542 209,420 191,903 193,873 Contributions 450 7,149 2,281 851 -
Developer Participation 197,300 245,242 2,025,694 2,278,589 1,284,622 Gain on sale of City property - - - - 294,375
Miscellaneous 1,180,278 709,005 193,644 113,587 314,259 Total Revenues 44,772,412 47,001,157 49,685,590 51,551,752 54,449,811 Expenditures
Current:

General government 8,260,092 8,021,451 8,385,012 8,597,028 9,608,392 Public safety 10,421,130 9,351,367 9,535,298 10,111,264 10,665,634 Community Development 2,776,455 3,039,321 3,178,940 3,116,057 2,932,425 Parks and recreations 5,191,554 5,658,851 5,664,224 5,603,750 6,216,676 Library - - - - -
Public works 10,492,797 11,235,425 10,646,686 10,719,703 11,986,129 Capital outlay 6,399,930 10,447,448 6,829,408 10,497,334 10,776,488 Debt Service:

Principal retirement - - - - -
Interest and fiscal charges - - - - -
Bond issuance costs - - - - -
Pass through agreements - - - - -
Total Expenditures 43,541,958 47,753,863 44,239,568 48,645,136 52,185,744 Excess of revenues over/(under) expenditures 1,230,454 (752,706) 5,446,022 2,906,616 2,264,067 Other Financing Sources (Uses)
Transfers in 7,296,303 7,963,808 7,508,620 11,159,224 9,035,390 Transfers out (7,296,303) (7,963,808) (7,508,620) (11,710,204) (9,047,638) Long term debt issued - - - - -
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 3,143,678 Total other financing sources (uses) 1,200,192 6,716,848 3,013,793 835,076 3,131,430 Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 17) - - - - -
Net change in fund balances 2,430,646 $ 5,964,142 $ 8,459,815 $ 3,741,692 $ 5,395,497 $ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% Source: Finance Department
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.

City of Yorba Linda
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-139-
Fiscal Year
2018 2019 2020 2021 2022
Revenues
Taxes 43,517,567 $ 44,938,431 $ 45,995,354 $ 47,277,203 $ 51,396,226 $ Licenses and permits 1,277,319 1,758,173 1,758,957 1,905,891 2,502,333 Intergovernmental 5,054,524 5,847,394 7,793,872 6,441,439 9,560,743 Charges for services 3,783,290 3,829,460 3,149,392 3,178,690 4,555,316 Use of money and property 5,448,994 3,414,409 3,799,085 718,569 (1,366,833) Fines and forfeitures 172,153 158,529 136,271 63,000 120,332 Contributions - - - - -
Developer Participation 1,336,048 3,794,795 2,916,798 448,537 1,702,646 Gain on sale of City property 14,257 10,759 3,106,643 3,363,549 - Miscellaneous 880,542 511,547 252,809 1,167,358 307,478 Total Revenues 61,484,694 64,263,497 68,909,181 64,564,236 68,778,241 Expenditures
Current:

General government 7,412,889 7,556,660 7,382,901 9,918,063 9,419,419 Public safety 11,601,058 11,774,157 12,451,068 12,584,332 13,134,552 Community Development 9,004,086 3,027,458 4,923,127 3,355,451 3,877,107 Parks and recreations 6,098,032 6,652,263 8,447,644 6,317,469 8,010,629 Library 3,967,009 4,523,472 4,291,564 5,638,179 5,787,704 Public works 11,583,370 11,536,226 12,113,687 13,327,507 13,613,147 Capital outlay 17,803,173 14,937,875 36,668,311 20,468,213 13,032,060 Debt Service:

Principal retirement - - 490,000 - 8,151,000
Interest and fiscal charges - - 648,888 108,271 277,954 Bond issuance costs - 321,311 105,052 - -
Pass through agreements - - - - -
Total Expenditures 67,469,617 60,329,422 87,522,242 71,717,485 75,303,572 Excess of revenues over/(under) expenditures (5,984,923) 3,934,075 (18,613,061) (7,153,249) (6,525,331) Other Financing Sources (Uses)
Transfers in 17,821,152 20,503,308 24,009,934 22,610,921 14,431,285 Transfers out (17,821,152) (20,503,308) (44,781,579) (22,610,921) (14,431,285) Long term debt issued - 15,892,798 7,611,000 - -
Proceeds from sale of capital asset - - - - 10,157,193
Insurance recoveries - - - - -
Bond discount - - - - -
Contributions to Successor Agency - - - - -
Contributions from Successor Agency 205,623 3,756,523 87,345 - - Total other financing sources (uses) 205,623 19,649,321 (13,073,300) - 10,157,193 Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 17) - - - - -
Net change in fund balances (5,779,300) $ 23,583,396 $ (31,686,361) $ (7,153,249) $ 3,631,862 $ Debt service as a percentage of noncapital expenditures 0.0% 0.7% 2.2% 0.2% 13.5% Source: Finance Department
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.

City of Yorba Linda
Assessed Value of Estimated Actual Value of Taxable Property Last Ten Fiscal Years
-140-
Fiscal Year
Ended
June 30
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 2022 17,350,569,091 175,408,871 (288,495,018) 17,525,977,962 (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

City of Yorba Linda
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
-141-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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 0.02365 0.02470 0.02528 0.02292 0.02298 0.02325 0.02370 0.02291 0.02489 0.02376 Metropolitan Water District 0.00350 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 0.00001 0.00000 0.00000 0.00000 N. Orange County Community College 0.01902 0.01704 0.01704 0.03043 0.02885 0.02927 0.02828 0.02409 0.03198 0.02877 Orange USD Series 2018 2016 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02685 0.02288 0.01664 0.01656 Placentia Yorba Linda Unified 0.06203 0.06525 0.05822 0.05665 0.05475 0.05529 0.05261 0.04848 0.06032 0.04849 Rancho Santiago Community College 0.03241 0.03334 0.02878 0.03063 0.02999 0.03013 0.02875 0.02818 0.02768 0.02652 Total Direct & Overlapping (2) Tax Rates 1.14061 1.14383 1.13282 1.14413 1.14007 1.14144 1.16370 1.15004 1.16501 1.14760 City's share of 1% Levy per Prop 13 (3)
City 0.12480 0.12480 0.12480 0.12480 0.12480 0.10625 0.10625 0.10625 0.10625 0.10625 Library 0.05525 0.05525 0.05525 0.05525 0.05525 0.05570 0.05570 0.05570 0.05570 0.05570 Total City Direct Rate 0.18005 0.18005 0.18005 0.18005 0.18005 0.16195 0.16195 0.16195 0.16195 0.16195 Redevelopement Rate (4)
Total Direct Rate (5) 0.25254 0.13436 0.13453 0.13468 0.13507 0.13557 0.13552 0.13575 0.13628 0.13639 (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) 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.
(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

City of Yorba Linda
Principal Property Taxpayers
Current Year and Nine Years Ago
-142-
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Value Value Value
BRYANT AT YORBA LINDA $ 130,719,870 0.746% - 0.000%
Savi Ranch Property Holdings LLC 82,445,374 0.470% - 0.000% YL Pines LLC 35,683,125 0.204% 23,626,118 0.206%
Packing House Yorba Linda LLC 35,435,821 0.202% - 0.000% Savi Ranch Group LLC 34,694,710 0.198% - 0.000%
Zelman Yorba Linda LLC 34,126,423 0.195% - 0.000%
San Jose Central Travel Inc. 27,874,161 0.159% - 0.000% Toll West Coast LLC - 0.000% - 0.000%
Eastlake Commercial 2007 LLC 27,120,434 0.155% 23,623,096 0.206% St. Joseph Heritage Healthcare 25,859,467 0.148% - 0.000% Trico-Savi Business Park LP 25,314,800 0.144% 21,846,811 0.190% GCCFC 2007 GG9 Diamond Office - 0.000% 101,210,532 0.881% James and Anna Weide - 0.000% 32,500,000 0.283%
St Jude Hospital Yorba Linda - 0.000% 29,338,177 0.255% LMI Riverbend LLC - 0.000% 63,403,129 0.552%
Savi Ranch 1690 Inc - 0.000% 28,528,138 0.248%
Bastanchury Holding Company LP - 0.000% 20,855,462 0.182% Nobel Biocare USA LLC - 0.000% 24,445,571 0.21%
Top Ten Totals $ 459,274,185 2.621% $ 369,377,034 3.216% City Totals $ 17,525,977,962 $ 11,484,863,528
Source: HdL Coren and Cone, Orange County Assessor 2012/13 and 2021/22 Tax Rolls 2022 2013

City of Yorba Linda
Property Tax Levies and Collections
Last Ten Fiscal Years
-143-
Fiscal
Year
Ended
June 30
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% 2022 36,437,371 35,967,667 98.711% 257,528 36,225,195 99.418% (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
Collected within the
Taxes Levied
for the Percent
Fiscal Year
Fiscal Year of Levy Collections in
Amount of Levy
Total Collections to Date
Percent
Years (1) Amount of Levy
Subsequent

City of Yorba Linda
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
-144-
Fiscal Year Tax Lease Due to Golf Course Total Percentage Ended Allocation Revenue Other Revenue Capital Primary of Personal Debt Per Calendar Personal June 30 Bonds Financings Governments Bonds Leases Government (1) Income Capita Year Income Population 2013 - $ - $ - $ 15,635,000 $ 229,434 $ 15,864,434 $ 0.50% 236.54 2012 3,146,124,000 66,437 2014 - - - - 146,885 146,885 0.00% 2.19 2013 3,204,691,000 67,069 2015 - - - - - - n/a n/a 2014 3,158,626,000 67,055
2016 - - - - - - n/a n/a 2015 3,174,294,000 67,637
2017 - - - - - - n/a n/a 2016 3,213,873,000 67,890
2018 - - - - - - n/a n/a 2017 3,250,126,000 69,121
2019 - 15,857,373 (2) - - - 15,857,373 0.46% 230.80 2018 3,453,929,000 68,706 2020 - 22,914,112 (3) - - - 22,914,112 0.62% 333.78 2019 3,668,872,000 68,650 2021 - 22,463,372 - - - 22,463,372 0.60% 331.09 2020 3,772,935,000 67,846 2022 - 13,100,000 - - 1,125,938 14,225,938 0.37% 211.59 2021 3,838,762,000 67,233 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.

Governmental Activities Business-type Activities

City of Yorba Linda
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
-145-
Fiscal Year Certificates Lease Percent of
Ended of Revenue Assessed Per
June 30 Participation Financing (2) Total Value (3) Capita 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
2022 - 13,100,000 13,100,000 0.07% 195
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) 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

City of Yorba Linda
Direct and Overlapping Debt
As of June 30, 2022
-146-
2021-2022 Taxable Assessed Valuation: $14,533,933,362
City Assessed Valuation $ 17,525,977,962
Redevelopment Agency Incremental Valuation (2,992,044,600) $ 14,533,933,362
Estimated
Share of
Percent Outstanding Overlapping
Applicable (1) Debt 6/30/2022 Debt
OVERLAPPING DEBT:
618.01 N O C COMMUNITY COLLEGE 2002 BOND SERIES #2003B 11.635% 29,293,143 $ 3,408,388 $ 622.02 BREA OLINDA UNIFIED-1999 BOND SR 2003A 0.096% 4,523,243 4,350 623.01 RANCHO SANTIAGO CCD 2005+2011 REFUNDING BD 0.451% 12,755,000 57,516 637.02 PLAC-YORBA LINDA U 2002 BOND #2002A 50.044% 4,816,288 2,410,276 639.02 PLAC-YORBA LINDA U 2002 BOND #2004B 50.044% 864,744 482,799 645.02 BREA OLINDA USD-1999, 2010 REFUNDING 0.096% 1,243,057 1,195 6AC.01 RANCHO SANTIAGO CCD 2002 SR 2005B 0.451% 38,588,399 174,008 6AG.01 PLAC-YORBA LINDA U 2002 BOND #2005C 50.044% 779,610 390,150 6AJ.01 N O C COMM COLL 2002 BOND 2005 REFUNDING 11.635% 27,702,436 3,223,302 6AV.01 RANCHO SANTIAGO CCD 2002 BOND SR 2006C 0.451% 48,704,329 219,624 6BA.01 PLAC-YORBA LINDA U 2008 BOND, SR A 50.044% 39,285,000 19,659,890 6BG.01 PLAC-YORBA LINDA U 2008 BOND, SR C & D 50.044% 76,124,200 38,095,797 6BL.01 PLAC-YORBA LINDA USD 2008 BOND, SR Q 50.044% 25,000,000 12,511,066 6BY.01 PLAC-YORBA LINDA U 2008 BOND, SR D 50.044% 22,128,918 11,074,254 6BZ.01 PLAC-YORBA LINDA U 2008 BOND, SR E 50.044% 8,725,000 4,366,362 6CN.01 RANCHO SANTIAGO CCD 2012 GO REF BOND 0.451% 96,725,000 436,164 6DG.01 N O C COMM COLL 2014 BOND SR 2016A 11.635% 34,025,075 3,958,969 6EG.01 ORANGE USD SR 2018 EL 2016 0.977% 277,865,000 2,715,604 6EU.01 N O C COMM COLL 2014 BOND SR B 11.635% 112,416,035 13,080,107 6Z2.01 PLAC-YORBA LINDA U 2012 GO REF BOND 50.044% 50,740,000 25,392,460 *C55.14 METROPOLITAN WATER DISTRICT 2.575% 4,052,114 104,353 TOTAL OVERLAPPING DEBT $ 141,766,635
CITY DIRECT DEBT:

CITY OF YORBA LINDA LEASE REVENUE FINANCINGS 100% 13,100,000 13,100,000 TOTAL DIRECT AND OVERLAPPING DEBT 154,866,635 $
Debt To Assessed Valuation Ratios: Direct Debt 0.00%
Overlapping Debt 0.98%
Total Debt 0.98%
(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.

City of Yorba Linda
Legal Debt Margin Information
Last Ten Fiscal Years
-147-
Legal Debt Margin Calculation for the Current Year
Assessed value $ 17,525,977,962
Conversion percentage 25%
Adjusted assessed value 4,381,494,491
Debt limit (15% of adjusted assessed value) 657,224,174 Debt applicable to limit -
Legal debt margin - Current Year $ 657,224,174
Fiscal
Year
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 657,224,174 - 657,224,174 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%
2022 657,224,174 - 657,224,174 0.0%
Source: City of Yorba Linda Finance Department
Limit to Limit
Debt as
Percentage
Margin of Limit
Debt
Debt
Applicable Debt
Legal

City of Yorba Linda
Pledged Revenue Coverage
Last Ten Fiscal Years
-148-
Fiscal Year Less Net
Ended Golf Course Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2013 5,670,123 $ 4,847,456 $ 822,667 $ 455,000 $ 742,354 $ 0.687 2014 - - - - - -
2015 - - - - - -
2016 - - - - - -
2017 - - - - - -
2018 - - - - - -
2019 - - - - - -
2020 - - - - - -
2021 - - - - - -
2022 - - - - - -
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2013 - $ - $ - $ - $
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
2022 - - - -
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

City of Yorba Linda
Demographic and Economic Statistics
Last Ten Fiscal Years
-149-
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 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%
2021 67,233 3,838,762 57,096 4.90% 43.9 95.8% 53.8%
Source: HdL Coren and Cone

City of Yorba Linda
Principal Employers
Current and Six Years Ago
-150-
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employees Employment
Costco Wholesale Corporation # 445 321 3.29% 293 4.00%
Nobel Biocare U S A, L L C 299 3.06% 269 3.67%
Jondo Ltd. 201 2.06% - 0.00%
Euroline Steel Windows 142 1.45% - 0.00%
Coldwell Banker 118 1.21% 118 1.61%
Serento Rosa 115 1.18% - 0.00%
Sprouts Farmers Market 99 1.01% 78 1.06%
Vons Grocery Co #3069 98 1.00% 86 1.17%
Bristol Farms 87 0.89% - 0.00%
So CA Permanente Medical Group 86 0.88% 55 0.75%
Chick-Fil-A At Yorba Linda Fsr 85 0.87% - 0.00%
Sunrise of Yorba Linda 84 0.86% 42 0.57%
Sprouts Farmers Market 81 0.83% 70 0.96%
Trader Joe's #176 81 0.83% 50 0.68%
White House Catering Inc 80 0.82% 75 1.02%
Office Solutions Business 80 0.82% 98 1.34%
2,057 21.06% 1,234 16.85%
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
2022 2016

City of Yorba Linda
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
-151-
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 5.20 6.00 8.00 9.00 9.00 9.96 9.48 10.25 10.73 17.45 City Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.48 3.48 3.48 Finance 6.00 6.00 6.00 6.00 6.00 6.50 6.75 6.48 6.48 6.75 Community Development
Planning 5.20 6.20 6.20 6.20 6.20 6.98 6.98 6.50 6.50 6.50 Building 8.70 8.70 8.70 8.70 8.70 10.30 10.30 11.30 11.30 11.30 Community Preservation 3.25 3.25 3.25 3.25 3.25 3.20 3.20 3.20 3.20 3.20 NPDES 0.30 0.30 0.30 0.30 0.30 - - - - -
Public Works
Administration/Engineering 6.85 6.90 6.90 6.65 6.65 6.75 7.71 7.75 7.75 8.45 Maintenance 9.04 10.04 10.04 10.04 10.04 10.04 10.04 11.04 11.04 11.04 NPDES 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.35 1.35 1.35 Landscape Assessment Dist. 3.71 3.71 3.71 3.96 3.96 3.96 3.96 5.82 5.82 6.61 Parks & Recreation
Administration 2.10 2.45 2.95 2.95 2.95 2.80 2.80 2.48 2.48 4.49 Recreation 29.27 29.91 29.91 29.91 29.91 32.51 32.51 32.95 36.94 32.98 Parks Maintenance 8.85 8.85 8.85 8.85 8.85 9.05 9.05 10.05 10.05 9.05 Facilities Maintenance 2.20 2.20 2.20 2.20 2.20 2.40 2.40 2.75 3.75 3.40 Library 31.55 31.55 31.55 31.55 31.55 31.32 31.32 31.81 33.15 33.15 Total 131.47 135.31 137.81 138.81 138.81 145.02 145.75 152.21 159.02 164.20 Source: City of Yorba Linda

City of Yorba Linda
Operating Indicators by Function
Last Ten Fiscal Years
-152-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Parks & Recreation
Number of participants 13,705 13,152 11,406 9,356 11,331 10,162 10,395 6,183 6,116 12,770 Number of facility rentals 1,799 1,833 1,722 1,958 1,973 1,826 1,492 902 329 3016 Teams in league events 206 155 227 175 148 144 137 148 145 185 Police (1)
Calls for Service 10,057 17,452 18,497 18,162 19,922 22,125 20,158 18,666 17,766 18,437 Arrests 215 378 435 458 717 442 470 902 629 632
Moving Citations 1,325 2,220 2,507 2,808 1,910 1,728 1,776 1,542 1,465 1,253 Crime reports 1,884 2,344 2,408 2,705 2,541 2,640 2,715 2,523 233 2,434 Parking citations 88 277 425 419 720 1,001 842 566 264 347 Public Works (2)
Street resurfacing (# streets) - 211 84 173 173 182 151 139 292 135 Library
Attendance in Library (door count) 338,579 334,942 323,415 328,646 328,646 276,051 284,628 185,038 83,346 374,333 Number of items checked out 891,041 917,134 870,029 881,283 881,283 938,109 1,044,225 799,631 620,161 1,130,025 Number of programs 714 601 666 721 721 961 930 619 89 33,926 Golf Course
Number of rounds played 59,096 57,476 55,755 55,483 55,483 60,355 59,237 52,804 67,251 64,716 Source: City of Yorba Linda

City of Yorba Linda
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
-153-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Parks & Recreation
Municipal Parks 29 29 29 30 32 33 33 33 33 33
Gyms 2 2 2 2 2 2 2 2 2 2
Community Center 1 1 1 1 1 1 1 1 1 1
Horse Arena 1 1 1 1 1 1 1 1 1 1
Municipal Golf Course 1 1 1 1 1 1 1 1 1 1
Arts Center 11
Museum 1 1 1 1 1 1 1 1 1 1
Library
Library Facility 1 1 1 1 1 1 1 1 1 1
Police
Stations 1 1 1 1 1 1 1 1 1 1
Public Works
Streets (centerline miles) 213 213 213 211 211 217 217 215.5 215.5 214.7 Street Lights n/a n/a n/a 5,756 6,096 6,139 6,139 6,139 6,139 6,171 Traffic Signals 58 61 61 61 64 62 64 65 65 67
Source: City of Yorba Linda, Finance Department

735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

MANAGERS / STAFF
Gar·denya Duran, CPA. CGMA
Br·ianna Schulu. CPA. CGMA
Seong-Hyea Lee. CPA. MBA
Evelyn Mor·entin-Barcena. CPA
Veronrca Hernandez. CPA
Laura Arvizu. CPA
X rnlu Zoe Zhang, CPA MSA
John Maldonado, CPA. MSA
Julia Rodr·iguez Fuentes. CPA. MSA
Demi Hrte. CPA
Jeffrey McKennan, CPA

MEMBERS
Amer-ican I nstrtute of
Cernfied Public Accountants
PCPS The A/CPA A.I/ranee
{o, CPA Ftrms
Governmental Audit
Quality Cente,
Employee Benefit Plan
Aud,r Qual,ry Cente,
Californra Socrety of
Cen:ifred Publrc Accountants
dil5b Proud Member of
qgp AlliottGlobalAlliance™
mm IIIJ

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
- 1 -
December 14, 2022
To the Honorable Mayor and Members of the City Council
City of Yorba Linda
Yorba Linda, California
We have audited the financial statements of City of Yorba Linda (the City) as of and for the year ended June 30, 2022, and have issued our report thereon dated December 14, 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 20, 2022, 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 City’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.

- 2 -
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

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

Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting: Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition: Management's failure to recognize revenue in accordance with generally accepted accounting principles.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’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 of the financial statements, during the year, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases. 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.

- 3 -
The most sensitive accounting estimates affecting the financial statements are:

Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the depreciation expense is based on historical estimates of each capitalized item’s useful life. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net pension liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of the net OPEB liability and related deferred inflows and outflows is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of the fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

The disclosure of accumulated depreciation in the notes to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosure of net pension liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of net OPEB liability and related deferred inflows and outflows in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The financial statement disclosures are neutral, consistent, and clear.

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

- 4 -
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, 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. We did not identify any uncorrected misstatements.

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, which are included in the attached letter dated December 14, 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 Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information in documents 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. 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.

- 5 -
This report is intended solely for the information and use of the 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.

San Bernardino, California
December 14, 2022

735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

MANAGERS / STAFF
Gar·denya Duran, CPA. CGMA
Br·ianna Schulu. CPA. CGMA
Seong-Hyea Lee. CPA. MBA
Evelyn Mor·entin-Barcena. CPA
Veronrca Hernandez. CPA
Laura Arvizu. CPA
X rnlu Zoe Zhang, CPA MSA
John Maldonado, CPA. MSA
Julia Rodr·iguez Fuentes. CPA. MSA
Demi Hrte. CPA
Jeffrey McKennan, CPA

MEMBERS
Amer-ican I nstrtute of
Cernfied Public Accountants
PCPS The A/CPA A.I/ranee
{o, CPA Ftrms
Governmental Audit
Quality Cente,
Employee Benefit Plan
Aud,r Qual,ry Cente,
Californra Socrety of
Cen:ifred Publrc Accountants
dil5b Proud Member of
qgp AlliottGlobalAlliance™
mm IIIJ

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
- 1 -

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
City of Yorba Linda
Yorba Linda, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate remaining fund information and each major fund of the City of Yorba Linda (the City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 14, 2022.

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

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

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

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

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

San Bernardino, California
December 14, 2022

735 E. Carnegie Dr. Suite I 00
San Bernardino , CA 92408
909 889 087 1 T
909 889 536 1 F
r amscpa.net

PARTNERS
Teny P Shea. CPA
Scott W Manno. CPA. CGMA
Leena Shanbhag. CPA. MST. CGMA
Br·adferd A. Welebir. CPA. MBA. CGMA
Jenny W Liu. CPA. MST
Brenda L Odle. CPA, MST 1Parrner Emer·irus l

MANAGERS / STAFF
Gar·denya Duran, CPA. CGMA
Br·ianna Schulu. CPA. CGMA
Seong-Hyea Lee. CPA. MBA
Evelyn Mor·entin-Barcena. CPA
Veronrca Hernandez. CPA
Laura Arvizu. CPA
X rnlu Zoe Zhang, CPA MSA
John Maldonado, CPA. MSA
Julia Rodr·iguez Fuentes. CPA. MSA
Demi Hrte. CPA
Jeffrey McKennan, CPA

MEMBERS
Amer-ican I nstrtute of
Cernfied Public Accountants
PCPS The A/CPA A.I/ranee
{o, CPA Ftrms
Governmental Audit
Quality Cente,
Employee Benefit Plan
Aud,r Qual,ry Cente,
Californra Socrety of
Cen:ifred Publrc Accountants
dil5b Proud Member of
qgp AlliottGlobalAlliance™
mm IIIJ

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.

Independent Accountant’s Report on
Agreed-Upon Procedures Applied to the
Appropriations Limit Worksheet
Independent Accountant’s Report
To the Honorable 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 (the City) for the year ended June 30, 2022. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreedupon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

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

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

2. For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

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

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.

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

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

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

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2022.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

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

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

San Bernardino, California
December 14, 2022

City of Yorba Linda

APPROPRIATIONS LIMIT COMPUTATION
2021 – 2022
2021 - 2022
Change in California Per Capita Personal Income 5.73%
Change in Population for the County -0.84%
Change in California Per Capita Personal Income
Converted to a Ratio 1.0573
Change in Population for the County
Converted to a Ratio 0.9916
Calculation of Factor for Ratio of Change
(1.0573 x 0.9916) 1.0484
2020 - 2021 limit 70,640,481 $
2021 - 2022 limit
($70,640,481 x 1.0484) 74,060,800 $ *
*allow for rounding

PUBLIC WORKS DEPARTMENT
DATE: DECEMBER 20, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE COUNCIL
FROM: JAMIE LAI, P.E. DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: JESSE GUTIERREZ, ASSESSMENT DISTRICT

MANAGER
SUBJECT: APPROVE AWARD OF A CONTRACT SERVICES AGREEMENT TO STAY GREEN, INC., FOR THE LAKEVIEW AVENUE PARKWAY PLANTING
RESTORATION PROJECT (LI231001) AND FINDING THAT THE

LAKEVIEW AVENUE PARKWAY PLANTING RESTORATION PROJECT IS

CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA), CLASS 1, PURSUANT TO CEQA GUIDELINES, SECTION 15301

RECOMMENDATION
It is recommended that the City Council:

1. Approve the Award of a Contract Services Agreement to Stay Green, Inc., in the amount of $233,808.12 for the Lakeview Avenue Parkway Planting Restoration Project; and

2. Authorize the City Manager to approve additional expenditures up to $35,071.21 (15% of the agreement value) in contract contingencies for potential additional services and unanticipated work that may arise, for a total potential agreement amount not-to-exceed $268,879.33; and

3. Find that the Lakeview Avenue Parkway Planting Restoration Project is categorically exempt from the California Environmental Quality Act (CEQA), Class 1, pursuant to CEQA Guidelines, Section 15301; and

4. Authorize the City Manager to sign and execute the contract services agreement and potential future amendments to the agreement within the designated contingency amount, on behalf of the City Council.

A P P R O V E A W A R D O F A C O N T R A C T S E R V I C E S A G R E E M E N T T O S T A Y G R E E N , I N C . , F O R T H E L A K E V I E W A V E N U E P A R K W A Y P L A N T I N G R E S T O R A T I O N P R O J E C T ( L I 2 3 1 0 0 1 ) A N D F I N D I N G

T H A T T H E L A K E V I E W A V E N U E P A R K W A Y P L A N T I N G

R E S T O R A T I O N P R O J E C T I S C A T E G O R I C A L L Y E X E M P T F R O M T H E C A L I F O R N I A E N V I R O N M E N T A L Q U A L I T Y A C T ( C E Q A ) , C L A S S 1 , P U R S U A N T T O C E Q A G U I D E L I N E S , S E C T I O N 1 5 3 0 1 P a g e | 2

BACKGROUND
The City’s Landscape Maintenance Assessment District (LMAD) division is responsible for the landscape maintenance and improvement of various Local and Arterial Landscape Zones throughout the City. In order to effectively maintain vegetation integrity and aesthetic standards, planting and associated improvement projects are undertaken and overseen by the LMAD group for all Zones. One such large scale planting and improvement project is currently being implemented in Local Landscaping Zone L-5B. The Zone is part of the Vista Del Verde Planned Community located in the Northwestern corridor of the City, along Lakeview Ave. and Bastanchury Rd, adjacent to the Black Gold Golf Course. LMAD staff solicited a proposal for the design and preparation of plans and specifications for the project from design engineering firms on the City’s On-Call list. MIG, Inc., was awarded a task order in an amount of $29,489 for design of the project in January of 2022 under their On-Call agreement. The completed final design plans and specifications for the project were approved in July of 2022.

The project scope of work covers improvements to landscape former turf parkways along Lakeview Avenue (Attachment 1 – Vicinity Map). The scope of work for the project includes clearing, fine grading, landscape planting, automatic irrigation system and controller installation, 30-day plant establishment period and 60-day project maintenance. The scope requires the contractor to furnish all labor, services, plant materials, equipment, appurtenances, and incidentals necessary to install and complete the work contemplated per the plans and specifications. MIG will perform final punch list and end of maintenance review services once the eventual construction contract period is completed.

DISCUSSION
Following completion of the final landscaping design and in accordance with the City’s Purchasing Policy and State of California’s Public Contract Code, LMAD staff advertised the Project via a formal Invitation for Bids. The City Clerk received and opened five (5) responsive bids for this project on October 20, 2022. Stay Green, Inc., the apparent low bidder submitted a bid proposal in the adjusted amount of $233,808.12. A summary of the bids is outlined in the below table:

Bidder Bid Amount
Stay Green, Inc. $233,808.12
Green Giant Landscape, Inc. $251,820.99
Marina Landscape, Inc. $290,052.40
Mariposa Landscapes, Inc. $322,415.65
Nieves Landscape, Inc. $359,595.15

A P P R O V E A W A R D O F A C O N T R A C T S E R V I C E S A G R E E M E N T T O S T A Y G R E E N , I N C . , F O R T H E L A K E V I E W A V E N U E P A R K W A Y P L A N T I N G R E S T O R A T I O N P R O J E C T ( L I 2 3 1 0 0 1 ) A N D F I N D I N G

T H A T T H E L A K E V I E W A V E N U E P A R K W A Y P L A N T I N G

R E S T O R A T I O N P R O J E C T I S C A T E G O R I C A L L Y E X E M P T F R O M T H E C A L I F O R N I A E N V I R O N M E N T A L Q U A L I T Y A C T ( C E Q A ) , C L A S S 1 , P U R S U A N T T O C E Q A G U I D E L I N E S , S E C T I O N 1 5 3 0 1 P a g e | 3
The award of the Agreement is Categorically Exempt from the California Environmental Quality Act (CEQA) based upon a Class 1 exemption (Cal. Code Regs., Title 14, Section 15301). The Class 1 exemption consists of the operation, repair, maintenance, permitting, leasing, licensing or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The Project consists of repair, maintenance and minor alterations to existing facilities involving negligible expansion of existing use and therefore qualifies as a Class 1 exemption.

FISCAL IMPACT
The contract costs for this project will be allocated entirely to the Zone Budget for Local Landscape Zone L-5B. Sufficient reserve funding for the proposed contract award and associated project costs are budgeted in the LMAD Capital Improvement Program budget (LI231001) for Fiscal Year 2022/2023. The requisite funding is programmed in account 4010050-461640, therefore no appropriation is required as a result of the recommended action.

ALTERNATIVES
The City Council may choose to not award the proposed Agreement for the Lakeview Avenue Parkway Planting Restoration Project and reject all bids. Staff does not recommend this alternative as it would delay the completion of the needed landscaping improvements.

The bids received from Stay Green, Inc., are competitive and there is no guarantee that readvertising the project will result in lower bids.

ATTACHMENTS
Attachment 1 – Vicinity Map
Attachment 2 – Stay Green, Inc. (Agreement)

LAKEVIEW AVE. PARKWAY

PLANTING RESTORATION

PROJECT
11/28/2022

Project Name/No.: Lakeview Ave. Pkwy Planting Restoration Contract No.:

Restoration Project (LMAD Zone L-5B)
Dept./Contract Rep: PW-LMAD/ A. Gilgren Approved: _12/20/2022_

CITY OF YORBA LINDA

CONTRACT SERVICES AGREEMENT
FOR

LAKEVIEW AVENUE PARKWAY PLANTING RESTORATION PROJECT
THIS CONTRACT SERVICES AGREEMENT (“Agreement”), is made and effective this 20th day of December, 2022 by and between the CITY OF YORBA LINDA, a California municipal corporation, (“City”) and STAY GREEN, INC., a Corporation, (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.

R E C I T A L S
A. City requires construction services. Contractor has represented to City that Contractor is qualified to perform said services and has submitted a proposal to City for same.

B. City desires to have Contractor perform said services on the terms and conditions set forth herein.

NOW, THEREFORE, based on the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both Parties, City and Contractor hereby agree as follows:
1) SERVICES OF CONTRACTOR.

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the Bid Documents and Plans and Specifications (“Bid Specifications”) attached hereto as Exhibit A and incorporated herein by this reference, which services may be referred to herein as the “Services.” As a material inducement to City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first-class work and services and Contractor is experienced in performing the Services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Documents Included in Contract. Documents Included in Contract. This contract consists of the Noncollusion Affidavit Certification of Principal, Supplemental Information, General and Special Specifications, plans, drawings, all responsible bidding documents (including but not limited to the bid proposal and corrected bid quantities document), the Notice Inviting Sealed Bids, Instructions to Bidders, this Contract Services Agreement, and all required bonds, insurance policies, endorsements, and certificates, permits, notices, and affidavits, any Addenda or supplemental agreements or change orders

2 issued by City, as well as any and all referenced specifications, details, schedules, appendices, and attachments, which are incorporated as if fully set forth herein. In the event of an inconsistency, this Agreement shall govern.

1.3 Compliance with Law. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder.

Contractor is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Sections 1600, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. Ready-mix suppliers and haulers delivering materials to public works projects must also comply with Labor Code Section 1720. Both suppliers and haulers of ready-mix materials will need to register with the Department of Industrial Relations as required under Labor Code Section 1725.5. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is ONE THOUSAND DOLLARS ($1,000) or more, Contractor agrees to fully comply with such Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices. Contractor will maintain and will require all subcontractors to maintain valid and current California Department of Industrial Relations (“DIR”) Public Works Contractor registration during the term of this Agreement. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed. It is understood that it is the responsibility of Contractor to determine the correct salary scale.

The State Prevailing Wage Rates may be obtained from the DIR pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contractor’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contractor must forfeit to City TWENTY FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Contractor does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day. Contractor also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776.

Contractor shall comply with all statutory requirements relating to the employment of apprentices.

Contractor shall defend (with counsel selected by City), indemnify, and hold City, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all “Public Works” (as defined by the Prevailing Wage Laws), Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.

1.4 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and

3 expense such licenses, permits and approvals as may be required by law for the performance of the Services required by this Agreement, including a City of Yorba Linda business license. Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder. Contractor shall be responsible for all subcontractors’ compliance with this Section 1.4.

1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder.

Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Officer.

1.6 Care of Services. Contractor shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.

1.7 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible for the service of the other. Contractor shall require all subcontractors to comply with the provisions of this agreement.

1.8 Additional Services. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. It is expressly understood by Contractor that the provisions of this Section shall not apply to the Services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the Services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore.

4 2. COMPENSATION.

2.1 Contract Sum. For the Services rendered pursuant to this Agreement, the Contractor shall be compensated as specified herein, but not exceeding the maximum contract amount of Two Hundred Thirty-Three Thousand Eight Hundred Eight and 12/100 Dollars ($233,808.12) except as provided in Section 1.8. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by City; Contractor shall not be entitled to any additional compensation for attending said meetings.

2.2 Progress Payments. Prior to the first day of the month, during the progress of the Services, commencing on the day and month specified in this Agreement, Contractor shall submit to the Contract Officer a complete itemized statement of all labor and materials incorporated into the Services during the preceding month and the portion of the Contract Sum applicable thereto. Upon approval in writing by the Contract Officer, payment shall be made to Contractor from City within thirty (30) days.

City shall pay Contractor a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security. Refer to Section 7.4 of this Agreement for retention of funds.

3. PERFORMANCE SCHEDULE.

3.1 Time of Essence. Time is of the essence in the performance of this Agreement. If the work is not completed within forty-five (45) working days, it is understood that the AGENCY will suffer damage.

3.2 Schedule of Performance. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within forty-five (45) working days. When requested by Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer.

3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.

5 3.4 Term. The term of this Agreement shall begin on the date that the contract becomes fully executed and shall end upon project completion as described in the Bid Specifications unless the term of the Agreement is otherwise terminated or extended as provided for at City’s sole discretion to award multiple years. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate the Agreement, as provided in Section 7.9.

4. COORDINATION OF WORK.

4.1 Representative of Contractor. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

Stephen Darden, Director of Sales and Operations
______________________________________________
It is expressly understood that the experience, knowledge, capability and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

4.2 Contract Officer. The “Contract Officer” shall be such person as may be designated by the City Manager of City. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Assignment. The experience, knowledge, capability, and reputation of Contractor, its principals, and employees were a substantial inducement for City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the Services required hereunder in excess of one-half of 1 percent of Contractor’s total bid as to which Contractor’s original bid did not designate a subcontractor in addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated, or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Contractor, its agents, or employees, perform the Services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge,

6 supervision, or control of Contractor’s employees, servants, representatives, or agents, or in fixing their number, compensation, or hours of service. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the Contract Sum paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

4.5 Identity of Persons Performing Work. Contractor represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all of the Services set forth herein. Contractor represents that the Services required herein will be performed by Contractor or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.

4.6 Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

4.7 Trenches or Excavations. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply.
(a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.

7 (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of this Agreement.
(c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting Parties.

4.8 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

5. INSURANCE, INDEMNIFICATION AND BONDS.

5.1 Insurance. Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees, and agents of City:

Coverage (Check if applicable) Minimum Limits
(X) Comprehensive General Liability Insurance
(including premises and operations)
• Commercial General Liability no less broad
than ISO form CG 0001.
• Coverage must be on a standard Occurrence
form. Claims-made not acceptable. Minimum
limits: ONE MILLION DOLLARS
($1,000,000.00) per occurrence; TWO
MILLION DOLLARS ($2,000,000.00)
General Aggregate; TWO
MILLION DOLLARS ($2,000,000.00)
Products/Completed Operations Aggregate.

General Aggregate must apply separately to
the Services performed under this Agreement.
• Prior written consent is required if the
insurance has a deductible or self-insured
retention in excess of TWENTY-FIVE
THOUSAND DOLLARS ($25,000).

8 • Coverage shall be continued for one (1) year
after completion of the Services or the
expiration or termination of this Agreement.
• City, its elected and appointed officers,
employees, agents, and authorized
volunteers must be additional insureds for
liability arising out of the Services
performed by or on behalf of Contractor,
including the insured’s general supervision
of Contractor, and liability arising out of
products and ongoing and completed
operations by or on behalf of Contractor.

City, its elected and appointed officers,
employees, agents, and authorized
volunteers shall continue to be an additional
insured for completed operations for two (2)
years after completion of the work or the
expiration or termination of this Agreement.
• The policy definition of “insured contract”
must include assumptions of liability arising
out of both ongoing operations and the
products-completed operations hazard (“f”
definition of insured contract in ISO form CG
0001, or equivalent.
• The insurance provided to City and its officers,
employees, agents, and authorized volunteers
as an additional insured must apply on a
primary and non- contributory basis with
respect to any insurance of self-insurance
program maintained by City.
• Contractor shall provide written notice to City
within ten (10) working days if:
(1) any of the required insurance policies is
terminated; (2) the limits of any of the required
polices are reduced; or (3) the deductible or
self-insured retention is increased. In the event
any of said policies of insurance are cancelled,
Contractor shall, prior to the cancellation date,
submit new evidence of insurance in
conformance with Section 5.1 to the Contract
Officer.
• The policy must cover inter-insured suits and
include a “Separation of Insureds” or
“severability” clause which treats each insured
separately.

9 Coverage (Check if applicable) Minimum Limits
• The policy shall contain no endorsements or
provisions limiting coverage for (1)
explosion, collapse or underground hazard
(XCU); (2) products and completed
operations; (3) contractual liability; (4)
• third party action over claims; (5) cross
liability exclusion for claims or suits by one
insured against another; or (6) contain any
exclusions contrary to the Contract.
• Required Evidence of Coverage:
o Copy of the additional insured
endorsement or policy language granting
additional insured status.
o Copy of the endorsement or policy
language indicating that coverage
applicable to City is primary and noncontributory; and o Properly completed Certificate of
Insurance.

Coverage (Check if applicable) Minimum Limits
(X) Comprehensive Automobile Liability
Insurance (includes owned, non-owned, and
hired automobile hazards)
• ONE MILLION DOLLARS
($1,000,000.00)
per occurrence combined single limit per
accident.
• Coverage must apply to all owned, hired,
and non-owned vehicles.
• City must qualify as an insured.
• Required Evidence of Coverage:
o Copy of the endorsement or policy
language indicating that City of Yorba
Linda is an insured for its vicarious
liability.
o Properly completed Certificate of
Insurance.

Coverage (Check if applicable) Minimum Limits

10 (X) Workers’ Compensation/Employers’
Liability Insurance
• Statutory limits as required by the Labor
Code of the State of California, including
Section 3700 of the California Labor
Code.
• Employers Liability Statutory with limits
of ONE

MILLION
DOLLARS ($1,000,000.00) per Accident;

ONE MILLION DOLLARS
($1,000,000.00)
disease per employee; ONE MILLION
DOLLARS ($1,000,000.00) disease per
policy.
• Policy must include a written waiver of the
insurer’s right to subrogate against City.
• Required evidence of coverage:
o Subrogation waiver endorsement.
o Properly completed Certificate of
Insurance.
( ) Builder’s Risk Insurance (for property
constructed on behalf of City)
• Must cover “all risk” of physical loss
providing coverage, including collapse
from design error.
• Value insured shall cover 100% of
completed Agreement cost.
• Policy maintained until full acceptance of
Work.
• Required evidence of coverage:
o Subrogation waiver endorsement.
o Copy of the endorsement of policy
language indicating that coverage
applicable to City is primary and noncontributory; and o Properly completed Certificate of
Insurance.

5.2 General Insurance Requirements
In accordance with Public Code Section 20170, the insurance of surety companies who provide or issue the policy shall have been admitted to do business in the State of California with a credit rating of A- or better.

Insurance policies must be issued by an insurer with an A.M. Best’s rating of at least A:VII.

Contractor shall provide written notice to City within ten (10) working days if:
(1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer. Any insurance maintained by the City shall apply in excess of and not combined with insurance provided by this policy. City, its officers, employees, representatives, attorneys, and authorized volunteers shall be named as additional named insureds.

11 No Services under this Agreement shall commence until Contractor has provided City with original endorsements effecting coverage set forth in this Article 5. Such endorsements shall be signed by an authorized representative of the insurance company and shall include the signator’s company affiliation and title. Should it be deemed necessary by City, it shall be Contractor’s responsibility to see that City receives documentation, acceptable to City, which sustains that the individual signing said endorsements is indeed authorized to do so by the insurance company. Current Evidence of Coverage must be provided for the entire required period of insurance. City reserves the right to inspect complete, certified copies of all required insurance policies at any time. Upon written request, certified copies of required insurance policies must be provided within thirty (30) days. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

If the Contractor fails to maintain the aforementioned insurance, or secure and maintain the aforementioned endorsement, the City may obtain such insurance, and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. However, procuring of said insurance by City is an alternative to other remedies City may have, and is not the exclusive remedy for failure of Contractor to maintain said insurance or secure said endorsement. In addition to any other remedies City may have upon Contractor’s failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which became due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof.

Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5.3 The name and address for Additional Insured endorsements, Certificates and Notice of Cancellation is: City of Yorba Linda, 4845 Casa Loma Avenue, Yorba Linda, California, 92886.

Certificate of Insurance must include the following reference:

In the event Contractor subcontracts any portion of the Services in compliance with this Agreement, the contract between Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.

5.3 Indemnification. To the full extent permitted by law, Contractor agrees to indemnify, defend, and hold harmless City, its officers, employees, agents, and volunteers (“Indemnified Parties”) from and against any and all actions, either judicial, administrative, arbitration, or regulatory, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities whether actual or threatened (“Claims or Liabilities”) that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the performance of the Services, operations, or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“Indemnors”), or arising from Contractor’s reckless or willful misconduct, or arising from Contractor’s or Indemnors’ negligent performance of or failure to perform any term, provision, covenant, or condition of this Agreement, and in connection therewith:
(a) Contractor shall defend (with counsel selected by City) any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;

12 (b) Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims or Liabilities arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder; and Contractor agrees to save and hold City, its officers, agents, and employees harmless therefrom;
(c) In the event City, its officers, agents, or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the performance of or failure to perform the Services, operation or activities of Contractor hereunder, Contractor agrees to pay to City, its officers, agents, or employees, any and all costs and expenses incurred by City, its officers, agents, or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees. (d) Contractor’s duty to defend and indemnify as set out in this Section 5.3 shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act (“FIFRA”), Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), Resource Conservation and Recovery Act of 1976 (“RCRA”), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter-Cologne Water Quality Control Act, as any of those statutes may be amended from time to time.

The provisions of this Section do not apply to Claims or Liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness, or willful misconduct of the design professional. Contractor’s indemnification obligations pursuant to this Section 5.3 shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement. Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.

5.4 Labor and Materials and Performance Bonds. Concurrently with execution of this agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secures the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement.

5.5 Sufficiency of Insurer or Surety. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VU or better, unless such requirements are waived by the Risk Manager of City (“Risk Manager”) due to unique circumstances. In the event the Risk Manager determines that the Services to be performed under this Agreement creates an increased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond

13 required by this Section 5 may be changed accordingly upon receipt of written notice from the Risk Manager; provided that Contractor shall have the right to appeal a determination of increased coverage by the Risk Manager to the City Council of City within ten (10) days of receipt of notice from the Risk Manager.

5.6 Substitution of Securities. Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor.

6. RECORDS AND REPORTS.

6.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.

6.2 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents

14 in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.

6.4 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials.

Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

7. ENFORCEMENT OF AGREEMENT.

7.1 California Law. This Agreement shall be interpreted, construed, and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Santa Ana.

7.2 Disputes. In the event either Party fails to perform its obligations hereunder, the nondefaulting Party shall provide the defaulting Party written notice of such default. The defaulting Party shall have ten (10) days to cure the default; provided that, if the default is not reasonably susceptible to being cured within said ten (10) day period, the defaulting Party shall have a reasonable time to cure the default, not to exceed a maximum of thirty (30) days, so long as the defaulting Party commences to cure such default within ten (10) days of service of such notice and diligently prosecutes the cure to completion; provided further that if the default is an immediate danger to the health, safety, and general welfare, the defaulting Party shall take such immediate action as may be necessary. Notwithstanding the foregoing, the nondefaulting Party may, in its sole and absolute discretion, grant a longer cure period.

Should the defaulting Party fail to cure the default within the time period provided in this Section, the nondefaulting Party shall have the right, in addition to any other rights the nondefaulting Party may have at law or in equity, to terminate this Agreement. Compliance with the provisions of this Section 7.2 shall

15 be a condition precedent to bringing any legal action, and such compliance shall not be a waiver of any Party’s right to take legal action in the event that the dispute is not cured. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default.

7.3 Claims. Notwithstanding Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, Section 9204 of the Public Contract Code shall apply to any claim by the Contractor in connection with the Project.
(a) Upon receipt of a claim pursuant to Section 9204 of the Public Contract Code, the City will conduct a reasonable review of the claim and, within a period not to exceed 45 Days, provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, the Contractor and the City may, by mutual agreement, extend the aforementioned time period.
(b) The Contractor shall furnish reasonable documentation to support the claim. (c) If City Council approval is needed to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 Days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the City will have up to 3 Days following the next duly publicly noticed meeting of the City Council after the 45-Day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(d) Any payment due on an undisputed portion of the claim will be processed and made within 60 Days after the City issues its written statement. If the City fails to issue a written statement, paragraph (i) shall apply.
(e) If the Contractor disputes the City’s written response, or if the City fails to respond to a claim issued pursuant to Section 9204 within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City will schedule a meet and confer conference within 30 Days for settlement of the dispute. (f) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City will provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 Days after the City issues its written statement. Any disputed portion of the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and the Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside those established in Section 9204.
(g) Mediation may include any nonbinding process, including, but not limited to, neutral

16 evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in Section 9204. (h) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to Section 9204 shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(i) Failure by the City to respond to a claim from the Contractor within the time periods described in this subdivision or to otherwise meet the time requirements of Section 9204 shall result in the claim being deemed rejected in its entirety. (j) Amounts not paid in a timely manner as required by Section 9204 will bear interest at 7 percent per annum.
(k) If a Subcontractor or a lower tier Subcontractor lacks legal standing to assert a claim against the City because privity of the Contract does not exist, the Contractor may present to the City a claim on behalf of a Subcontractor or lower tier Subcontractor. A Subcontractor may request in writing, either on its own behalf or on behalf of a lower tier Subcontractor, that the Contractor present a claim for work which was performed by the Subcontractor or by a lower tier Subcontractor on behalf of the Subcontractor. The Subcontractor requesting that the claim be presented to the City shall furnish reasonable documentation to support the claim. Within 45 Days of receipt of this written request, the Contractor shall notify the Subcontractor in writing as to whether the Contractor presented the claim to the City and, if the original Contractor did not present the claim, provide the Subcontractor with a statement of the reasons for not having done so.
(l) A waiver of the rights granted by Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the Contractor and the City may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in Section 9204.

7.4 Retention of Funds. Progress payments shall be made in accordance with the provisions of Section 2.2 of this agreement. In accordance with said section, City shall pay Contractor a sum based upon ninety-five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the Services under this Agreement during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security to be paid to Contractor within sixty (60) days after final acceptance of the Services by the City Council of City, after Contractor has furnished City with a full release of all undisputed payments under this Agreement, if required by City. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds (per Public Contract Code § 7107) of up to one hundred fifty percent (150%) of the amount in dispute. City’s failure to deduct or withhold shall not affect Contractor’s obligations hereunder.

7.5 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting Party on any default shall impair such right or remedy or be construed as a waiver. A Party’s consent to or approval of any act by the other Party requiring the Party’s consent or approval shall not be deemed to waive or render unnecessary the other Party’s consent to or approval of any subsequent act. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default

17 concerning the same or any other provision of this Agreement.

7.6 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

7.7 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of EIGHT HUNDRED AND FIFTH DOLLARS ($850.00) as liquidated damages for each working day of delay in the performance of any of the Services required hereunder, as specified in the Schedule of Performance. In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements described in the Scope of Services. City may withhold from any moneys payable on account of the Services performed by Contractor any accrued liquidated damages.

7.9 Termination for Default of Contractor. If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City-owned property which Contractor is permitted to occupy hereunder and City may, after compliance with the provisions of Section 7.2, take over the Services and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owed the City as previously stated.

7.10 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a Party to any action or proceeding in any way connected with this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. Attorneys’ fees shall include attorneys’ fees on any appeal, and in addition a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The court may set such fees in the same action or in a separate action brought for that purpose.

8. CITY OFFICERS AND EMPLOYEES, NONDISCRIMINATION.

8.1 Non-liability of City Officers and Employees. No officer, official, employee, agent,

18 representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest. Contractor covenants that neither it, nor any officer or principal of it, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of the Services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

9. MISCELLANEOUS PROVISIONS.

9.1 Notice. Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the US Mail, prepaid, first- class mail, return receipt requested, addressed as follows:

To City: City of Yorba Linda
4845 Casa Loma Avenue Yorba
Linda, California 92886
Attention: Director of Public Works/City Engineer
To Contractor: Stay Green, Inc.
26415 Summit Circle
Santa Clarita, CA 91350
Attn: Chris Angelo, Chief Executive Officer
Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

19 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Article and Section Headings and Subheadings. The article and section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

9.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

9.5 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete, and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements, and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Contractor and by the City Council of City. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.6 Severability. In the event that any one or more of the articles, phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable, such invalidity or unenforceability shall not affect any of the remaining articles, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

9.7 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.

9.8 Invoicing. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date.

Invoices shall be submitted to:

City of Yorba Linda
4845 Casa Loma Avenue
Yorba Linda, California 92886 Attention:

Jesse Gutierrez, Assessment District Manager

9.9 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

20 9.10 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound.

This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties.
[SIGNATURES ON FOLLOWING PAGE]

21 IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above.

CITY OF YORBA LINDA
Dated: By:

MARK A. PULONE

CITY MANAGER
ATTEST:

CONTRACTOR:

Marcia Brown STAY GREEN, INC.

City Clerk
By: ________________________________

Signature: ________________________________
Title: ________________________________

Address: ________________________________
________________________________
________________________ By: ________________________________ Dianna Honeywell
Finance Director Signature: ________________________________

Title: ________________________________

Address: ________________________________
________________________________

APPROVED AS TO FORM:

RUTAN & TUCKER LLP
Todd Litfin
City Attorney
Two signatures are required if a corporation.

NOTE: CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.

PUBLIC WORKS DEPARTMENT
DATE: DECEMBER 20, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE COUNCIL
FROM: JAMIE LAI, P.E. DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: COLLEEN CALLAHAN, PRINCIPAL MANAGEMENT

ANALYST
SUBJECT: AWARD OF CONTRACT FOR THE CALFIRE GRANT FUNDED YORBA

LINDA FUEL REDUCTION PROJECT TO SAGE ENVIRONMENTAL
GROUP

RECOMMENDATION
It is recommended that the City Council:

1. Approve an increase to the Yorba Linda Fuel Reduction Project budget (LI221007) in an amount of $78,692; and

2. Approve the Award of a Contract Services Agreement to Sage Environmental Group LLC, in the amount of $524,610 for the Yorba Linda Fuel Reduction Project (LI221007); and

3. Authorize the City Manager to approve additional expenditures up to $78,692 (15% of the agreement value) in contract contingencies for potential additional services and unanticipated work that may arise, for a total potential agreement amount not-toexceed $603,302; and

4. Authorize the City Manager to sign and execute the contract services agreement and potential future amendments to the agreement within the designated contingency amount, on behalf of the City Council.

BACKGROUND
The bid opening for the Fuel Reduction contractor occurred on November 17, 2022. One bid was received from Sage Environmental Group LLC (Sage) (Attachment 1). This is the group that provided the initial goat grazing services at the West Bastanchury site in 2020.

We are confident in their abilities to address the grant scope for the next three (3) years with a possibility of a fourth year. The integrated services to reduce potential flashy fuels involves utilizing animal grazing where feasible and reasonable, along with hand crews and mechanical. This includes trees, shrubs and non-native vegetation as determined by our