POLICY: ENCROACHMENTS AND USES WITHIN CITY EASEMENTS
Number:
Page:
E-5 Issue Number:
Date Adopted:
Replaces:
4 October 17, 2023
June 2, 2020
• Adjacent and/or affected neighboring properties shall be notified of the request prior to the Planning Commission review. The easement area encompassed by the fence will be vacated by the City, with all costs of the vacation process, including landscape and irrigation modifications shall be borne by the property owner.
• The proposed fence shall be installed at a distance from the top of slope equal to any adjacent existing fence or as approved by the Planning Commission.
However, unless there is a consistent fence line either adjacent to the property or along a majority of the slope, the City would not grant encroachments greater than 18 feet from the top of slope.
• The establishment and maintenance of the fence and landscaping within the fenced area shall be consistent with the “General Fence Relocation Guidelines” as determined by the Planning Commission.
D. Other Implementation Procedures
The City Manager or his designee may develop any other rules, regulations, or procedures that may be necessary for the effective implementation of this policy.
Such regulations and procedures may incorporate (but are not limited to) provisions relating to insurance, indemnification, maintenance, notice, permit form, appeal process, etc.
E. Appeal Process
Any decision related to the land use within a City easement may be appealed in writing to the City. Public Works staff shall review the proposed appeal and forward the request for encroachment authorization to the City Manager. The final determination for encroachment authorization may ultimately be made by the City Council.
• Upon approval by the Planning Commission as part of a Design Review process including any proposed accessory structures or improvements in the easement area. Each case will be evaluated individually, and the Planning Commission shall take into account unique circumstances when applying this Policy. At the discretion of the Planning Commission, the property owner may be required to execute a Declaration of Restrictive Covenants (DORC) for the prior easement area.
6 Proposed New Fence Encroachments on City Maintenance Easements Proposed fence encroachments into City maintenance easements may be allowed subject to the following:
POLICY: ENCROACHMENTS AND USES WITHIN CITY EASEMENTS
Number: Issue Number:
Page: Date Adopted:
Replaces:
4 October 17, 2023
June 2, 2020
C I T Y C O U N C I L P O L I C I E S
GENERAL FENCE RELOCATION GUIDELINES
1. Each homeowner will be responsible for their own fencing costs and any other costs associated with fence relocation, including any damage to plants or sprinklers resulting from the fence relocation, and all costs incurred in the easement vacation process.
2. The homeowner may need to obtain a permit for the fence from the City of Yorba Linda Building Department.
3. All fence irrigation and landscape plans are subject to Planning Commission review and approval.
4. The fence shall be painted Hunter Green and remain maintained in good condition with minimal fading, rust, or corrosion visible from the street below at any time.
5. The irrigation system within the easement vacation area shall be installed and maintained by the property owner with a water source connected to the property owner’s water meter.
6. Trees, shrubs, and ground cover planting shall match the adjacent city-maintained trees, shrubs, and ground cover plant pallet.
7. Subject area shall remain at the existing grades prior to the easement vacation and shall not be modified in any way.
8. No new tree(s), shrub(s) or ground cover shall be planted within the subject area unless replacing existing naturally damaged or diseased tree(s) or shrub(s) or ground cover in kind and number.
9. Area shall not be used as an animal kennel or holding area.
10. Maintenance of fences, irrigation systems, trees, shrubs, and ground cover shall match, at a minimum, the standard of care provided by the City for the landscaped area adjacent to the easement vacation area.
11. Fence location shall be parallel to the top of slope at the limit of the easement vacation.
Number:
Page:
E-5
7
ATTACHMENT 4 - ARTISAN UTILITY CLEARANCES
4895 Main St
(Ward - Gracious Living)
4889 Main St(Brown & Co)
4893 Main St(Saba - Artisan)
4885 Main St(Ray Hart - also Clydes)
4897 Main St(Bigonger)
4901 Main St(Shin - Broken Yolk)
18291 Imperial Hwy(Old Towne Optometry)
18293 Imperial Hwy(Maggie Mae Photography)
ATTACHMENT 5 - COMMITMENT LETTER
FEBRUARY 18, 2025 CITY COUNCIL MEETING
CONSENT CALENDAR ITEM NO. 8 – ENCROACHMENT ONTO CITY
PROPERTY REQUEST – 4893 MAIN STREET (THE “ARTISAN”, NICK SABA)
ADDITIONAL INFORMATION RECEIVED AFTER POSTING OF AGENDA
0 0.1 0.4 1 2 3 4 5 6 6.5
(E) GRADE A.C PAVING
1 2
5 11 10 9
SOUTH ELEVATION
8'-8"
12'-0"
2 5'-4"
27'-0"T
O
P
OF A
R
C
H
E
D
R
O
OF
EXISTING 1ST FLOOR
TOP OF (E) BRICK WALL
1ST FLOOR ADDITION
ROOF LINE O/ KITCHEN
(N) 2ND FLR.
3'-0"
2 8'-4" M
A
X. H
EIG
H
T
MAIN STREET
15'-6"
14 19
18 2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-3.1a
NEW EXTERIOR ELEVATIONS 1/4" =1'-0" 1
N
E
W
E
X
T
E
R
I
O
R
E
L
E
VAT
I
O
N
S
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
2/10/25 CITY REVIEW
WEST ELEVATION
(REAR ELEVATION)
2 1 3
1 F.F: 0'-0"'
ELECT
SERVICE
EQUIP.
2 5'-4"
12'-0"
5 10
ROOF LINE O/ KITCHEN
3'-0"
2 8'-4" M
A
X. H
EIG
H
T
15'-6"
17 A B C D
19 2
D C B A
CL OF FA
C
A
DE EAST ELEVATION
(MAIN STREET ELEVATION)
(E) HISTORIC FACADE TO REMAIN (ENTRY DOORS MODIFIED & AWNING REMOVED)
ARTISAN
THE
6 11 12
12'-0"
25'-9"
4 4
17'-3"
18 15
2 13
16 16
18 1
EXTERIOR ELEVATION KEY NOTES
2 3
4 5
6 EXISTING 8" MASONRY WALLS ALONG PROPERTY LINE TO BE LOWERED TO 15'-6", REFER TO NEW ELEVATIONS & STRUCT. DWGS. FOR ADD'L. INFO., TYP. 7 8
9 10
11 12
13 14
15 16
17 18
19 EXISTING BRICK BULKHEAD TO REMAIN, PROTECT-IN-PLACE; REMOVE EXISTING PAINT FINSH, TYP.
NEW SCUPPER AND DOWNSPOUTS, PAINT TO MATCH ADJACENT SURFACE, TYP.
EXISTING WOOD FRAMED STOREFRONT WINDOWS TO REMAIN, PROTECT-IN-PLACE,TYP.
NEW ELECTRICAL SERVICE METER; REFER TO ELECTRICAL PLANS FOR ADD'L.
INFO., TYP.
NEW CMU BLOCK WALL, PAINT FINISH, TYP.
NEW FIRE RATED METAL DOOR AND FRAME WITH VISION PANEL
EXISTING BRICK FACADE TO REMAIN, PROTECT-IN-PLACE, U.N.O.; EXISTING PAINT SHALL BE REMOVED TO EXPOSE ORIGINAL BRICK, TYP.
NEW ROOFTOP MECHANICAL SCREEN, TYP.
NEW PAIR OF WOOD ENTRY DOORS WITH GLAZING PANEL, TYP.
NEW VERTICAL WOOD SIDING, TYP.
NEW TRANSOM WINDOWS AT ORIGINAL TRANSOM WINDOW LOCATION, TYP.
NEW CLASS "A" ASPHALT SHINGLE ROOF AT NEW SLOPED ROOF, TYP.
NEW 2-HR FRAMED WALL WITH PLASTER FINISH, PAINT FINISH, TYP.
NEW CLASS '"A" ROLLED ROOFING AT ARCHED ROOF, TYP.
NEW BOW TRUSSES WITH CLERESTORY WOOD WINDOWS, TYP.
NEW WOOD DOOR WITH GLAZING PANEL AT FRONT FACADE AND FIXED IN PLACE, TYP.
NEW 2-HR RATED WOOD FRAMED WALL WITH BRICK VENEER TO MATCH EXISTING FACADE IN TYPE AND STYLE, TYP.
NEW CONCRETE BOND BEAM ON TOP OF EXISTING MASONRY WALL PER STRUCTURAL, TYP.
20 DASHED LINE INDICATES ARCHED ROOF BEYOND, TYP.
21 NEW (CLASS 'A') TPO ROOFING SYSTEM, TYP.
22 NEW 4 X 8 WOOD BARRIER AT 42" A.F.F. ON INSIDE OF DOOR, TYP. 8 7
11'-4"
22'-0"
27'-0"
22
2 025 #21022
2821 newport blvd. newport beach, california 92663 (949)673-2643 EX-3.1 EXISTING EXTERIOR ELEVATIONS 1/4" =1'-0" 1 EXISTING EXTERIOR ELEVATIONS FIELD MEASURE, AS-BUILTS DECEMBER 4, 2021 START DECEMBER 9, 2021 REVIEW JANUARY 7, 2022 REVIEW 4893 MAIN STREET YORBA LINDA, CALIFORNIA 92886 "THE ARTISAN" MAY 20, 2022 UPDATE MAY 10, 2023 C.U.P. SUBMITTAL 2/10/25 CITY REVIEW +/- 18'-8" 7'-5" 0 1' 5' 10' WEST ELEVATION EAST ELEVATION 16'-0"± +/- 17'-0" 1'-10" (E) ALL VERTICAL DIMENSIONS FROM PHOTOGRAPH - VERIFY (E) ALL VERTICAL DIMENSIONS FROM PHOTOGRAPH - VERIFY 1 15 15 13 14 9 7 7 2 1 3 4 5 6 101112 KEY NOTES DESCRIPTION: 1 (E) 8" BRICK WALLS 234567891011121314 (E) PAINTED BRICK WALL AT FRONT FACADE (E) CMU WALL AT REAR FACADE: UNPAINTED PLAIN BLOCK (E) BRICK BULKHEAD LEDGE FOR STOREFRONT (E) WOOD FRAMED FIXED STOREFRONT SINGLE GLAZED (E) ENTRANCE DOORS - WOOD FRENCH DOOR (E) METAL SECURITY GRILL BEHIND STOREFRONT GLAZING (E) METAL SECURITY SCREEN DOORS (E) ROLL-UP DOOR (E) CANVAS AWNING AND FORMER TRANSOM WINDOWS INFILLED WITH VERTICAL WOOD SIDING (E) MERCHANT SIGNS - PAINTED WOOD (E) EXERIOR LAMPS (E) SCUPPER DRAIN AND DOWNSPOUTS (E) METAL LOUVERED ATTIC VENTS 15 (E) ELECT SERVICE METERS 7
2/10/25 - CITY REVIEW
2023
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
CVR-1
C
O
V
E
R
S
H
E
E
T
PROJECT ADDRESS:
4893 MAIN STREET
YORBA LINDA, CA 92886
DESCRIPTION OF WORK:
REMODEL (E) BUILDING, ADD REAR ADDITION AND
NEW SECOND FLOOR . ADD SECOND FLOOR DINING DECK.
TYPE OF CONSTRUCTION: VN
OCCUPANCY: A-2
NO OF STORIES: 2 STORY
GENERAL PLAN DESIGNATION:
ZONING:
A.P. #: 323-304-14
LEGAL DESCRPITION:
SEE SHEET EX-1.0 SITE PLAN FOR INFO.
PROJECT SUMMARY PROJECT TEAM
OWNER
NICK SABA
PH:
EMAIL:[email protected]
CONTACT: Nick Saba
ARCHITECT
THIRTIETH STREET ARCHITECTS, INC. 2821 NEWPORT BLVD.
NEWPORT BEACH, CA 92663
PH:(949) 673-2643
EMAIL: [email protected]
CONTACT: John Loomis
STRUCTURAL ENGINEER
SHUCRI (CHUCK) YAGHI
STRUCTURAL ENGINEERING
112 E. CHAPMAN AVE SUITE D
ORANGE, CA 92866
PH: 714-997-9120
EMAIL:[email protected]
CONTACT: Shucri Yaghi
MECH. PLUMB. ELECT.
WINSTON ENGINEERING INC.
23905 CLINTON KEITH ROAD, #114
WILDOMAR,CA 92595
PH: 951-902-6600
EMAIL:[email protected]
CONTACT: Nick Corley
AD
ADD
ADJ
AFF
ALUM
AP
ARCH
BC
BLDG
BLK'G
BD
BM
CAB
CLG
CLR
CJ
CK
CPT
CT
CIR
CONC
DECK'G
DP
DWG(S)
E
EA
EL
EQ
ELECT
EJ
EXT
FAB
FOF
FIN
FE
FLR
FRAM'G
FRP
FT
FTG
GA
GV
GYP. BD.
area drain
addendum
adjacent
above finish floor
aluminum
access panel
architect(ural)
base cap
building
blocking
board
beam
cabinet
ceiling
clear
control joint
caulking
carpet
ceramic tile
circle
concrete
decking
deep
drawing(s)
existing
each
elevation
equal
electrical
expansion joint
exterior
fabricated
face of finish
finish
fire extinguisher
floor
framing
fiberglass reinforced
plastic panels
foot
footing
gage, gauge
galvanized
gypsum board
HT
H.M.
LAM PLAS
MAX
MIN
MET
MTD
N
NTS
O.C.
O/
PA
PC
PLAS
PLYWD
PT
REQ'D
RB
RM
RO
SCHED
SHTH'G
SHWR
SQ
STRUCT
ST
T
THK
TOW
TYP
V
W/
WI
WD
WRGB
0 @
&
height
hollow metal
laminated plastic
maximum
minimum
metal
mounted
new
not to scale
on center
over
planter area
post cap
plaster
plywood
paint
required
rubber base
room
rough opening
schedule
sheathing
shower
square
structural
stone
tempered
thick(ness)
top of wall
typical
vinyl
with
wrought iron
wood
water-resistant
gypsum board
diameter
at
and
ABBREVIATIONS
1 A
OFFICE
100
COLUMN LINE
Letters In One Direction
Numbers In The Other Direction
SPACE IDENTIFICATION
Room Name
Room Number
DOOR SYMBOL
Door Number
WINDOW SYMBOL
Window Number
# KEY NOTE
3 REVISION
Cloud Around Revision
MATCH LINE
WORK POINT, CONTROL POINT
OR DATUM POINT
NORTH ARROW
SECTION
Section Number
Sheet Number
DETAIL
Detail Number
Sheet Number
INTERIOR ELEVATION(S)
Elevation Number
(Unfold Elevations Clockwise.
No Arrows Means Elevation Not
Shown)
Sheet Number
1 2
3 4
Room # 102A BEDROOM Room Name
XX WALL FINISH
PROPERTY LINE
NEW OR FINISHED 4
CONTOURS
1 EXISTING CONTOURS 42
SYMBOLS
TRUE
NORTH
3. P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
SHEET INDEX
COVER SHEET
TOPOGRAPHIC SURVEY
PROPOSED SITE PLAN
PROPOSED 1ST FLOOR PLAN
PROPOSED 2ND FLOOR PLAN
PROPOSED ROOF PLAN
PROPOSED EXTERIOR ELEVATIONS
PROPOSED EXTERIOR ELEVATIONS COLORED
PROPOSED BUILDING SECTIONS
PERSPECTIVE SKETCHES
(FIELD MEASURE- AS-BUILTS)
EXISTING SITE PLAN
EXISTING FIRST FLOOR PLAN
EXISTING EXTERIOR ELEVATIONS
EXISTING BUILDING SECTIONS
CVR-1
1 of 1
A-1.0
A-2.1
A-2.2
A-2.3
A-3.1
A-3.1A
A-4.1
A-5.1
EX-1.0
EX-2.1
EX-3.1
EX-4.1
BUILDING AREAS:
FLOOR: EXISTING:
VICINITY MAP
N.T.S.
PRELIMINARY DESIGN
PROJECT LOCATION
4891 MAIN STREET
YORBA LINDA
YORBA LINDA BLVD.
DECEMBER 4, 2021 START
M
AIN STREET
IMPERIAL HWY.
ORANGTHORPE AVE.
91 FREEWAY
57 FREEWAY
LA
KEVIEW
AVE.
FIRST FLOOR: 975 SF.
DECEMBER 9, 2021 REVIEW
JANUARY 7, 2022 REVIEW
TOTAL ENCLOSED AREA: 975 SF.
MAY 20, 2022 UPDATE
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
PROPOSED:
1ST FLOOR ADDITION: 609 SF.
975 SF .
3234 SF.
FEBRUARY 5, 2023 RE-DESIGN
(368) SF.
2ND FLOOR ADDITION: 1650 SF.
2ND FLOOR DECK ADDITION:
PROJECT DATA:
SITE AREA: 2,500 sf (.057 AC)
BUILDING AREA (FOOTPRINT): 1650 SF
LOT COVERAGE: 66 %
PARKING: 0 SPACES, PUBLIC PARKING ALONG MAIN STREET
EXISTING HANDICAP PARKING SPACE ADJ. TO PROPERTY
SELF SERVICE DINING & RETAIL SHOP:
TOTAL SEATING:(SELF-SERVICE)
1ST FLOOR OUTDOOR PATIO: 20 SEATS
2ND FLOOR & OUTDOOR DECK: 29 SEATS MAX.
MAY 4, 2023 REVIEW
EXISTING PARKING : 0 SPACES
PROPOSED PARKING : 0 SPACES
MAY 10, 2023
C.U.P. SUBMITTAL
SURVEYOR
ANACAL ENGINEERING COMPANY
1211 NORTH TUSTIN AVE.
ANAHIEM, CA 92807
PH: 714-774-1763
FX: 714-774-4590
EMAIL:[email protected]
CONTACT:
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-1.0
PROPOSED SITE PLAN 1/8" =1'-0" 1
P
R
O
P
O
S
E
D
S
I
T
E
P
L
A
N
P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
DECEMBER 7, 2021 START
EXHIBIT "A"
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
LOT 45, NEWMARK TRACT, IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 7, PAGES 45 AND 46 MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER O? SAID COUNTY.
PARCEL 2:
A NON- EXCLUSIVE EASEMENT FOR PARKING AND PUBLIC UTILITY PURPOSES, INCLUDING NOT
LIMITED TO SEWERS, CESSPOOLS, SEPTIC TANKS, WATER, ELECTRIC GAS AND TELEPHONE INSTALLATIONS SUBSTANTIALLY ALONG PROPERLY LINES, OVER:
THAT PORTION OF LOT 40 OF SAID NEWMARK TRACT, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHERLY CORNER OF SAID LOT 40; THENCE ALONG THE EASTERLY LINE OF SAID LOT 40, A DISTANCE OF 25.65 FEET THENCE IN A STRAIGHT LINE SOUTHWESTERLY TO A POINT IN THE SOUTHWESTERLY LINE OF LOT 40 DISTANT THEREON NORTH 43° 26' 39" WEST 25 FEET FROM THE SOUTHERLY CORNER OF LOT 40; THENCE SOUTH 43° 26' 39" EAST 25 FEET TO THE POINT OF BEGINNING.
THE WESTERLY 44 FEET OF LOTS 43, 45, 46 AND THE WESTERLY 44 FEET OF THE SOUTHERLY 3 INCHES OF LOT 47 OF THE NEWMARK TRACT AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 7, PAGES 45 AND 46 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
THE WESTERLY 30 FEET OF LOT 44 OF THE NEWMARK TRACT, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 7, PAGES 45 AND 46 OF MISCELLANEOUS MAPS,
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 323-304-14
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
DECEMBER 14, 2021 REVIEW
JANUARY 7, 2022 REVIEW
MAY 20, 2022 UPDATE
MARCH 22, 2023
DESIGN REVISION
MARCH 31, 2023
CONSULTANT UPDATE
MAY 4, 2022 REVIEW
MAY 10, 2023
C.U.P. SUBMITTAL
CATV
A
C
PAV
E
M
E
N
T (P
U
B
LIC)
AT&T PULL
BOX
WATER
METER
(4)GAS
VENTS
WATER
METER
EDISON PULL
BOX
ELECTRIC
PULL BOX WATER
METER
GAS
VENT
(391.52)
AC
(391.77)
AC
(391.52)
AC
(390.39)
AC
(390.81)
AC
(389.60)
AC
(389.86)
FC-EG
(390.27)
TC
(391.04)
FC-EG
(391.46)
TC
(391.13)
TC
(390.78)AC
(390.77)EG
(390.49)
FC
(390.70)
FC
(390.61)
FC
(389.99)
AC
(391.39)
FC
(391.71)
TC
(391.28)
FC-EG
(391.82)
TX
(391.45)
TC-0"
(391.48)
FC-EG
(390.40)
AC
(391.19)
FC
(E)(391.25)
FC
(E) GRADES
AT BACK OF
(E) BUILDING
(E) GRADES
AT BACK OF
(E) BUILDING
PROJECT NORTH
2 5.0
0' 2
5.0 0' 2
5.0 0'
100.00'
2 5.2
5'
00.25'
LOT 46
LOT 44
LOT 43
M
AIN
S
T
R
E
E
T
PARCEL 1
PARCEL 2
44.00'
APN: 323-304-14
LEGEND
PARCEL 2: EASMENT
EASMENT FOR SEWER PIPE
OUTDOOR
DINING AREA
220 SF
LOT 39
LOT 40
30.00'
PARCEL 1: PROPERTY IN QUESTION
LOT 42
59'-10"
(E) S.B.
40'-2"
(40.3')
2 5'-0"
LOT 45
IMPERIAL HIGHWAY
0 2' 8' 16'
2-WAY
DRIVEWAY
PROPOSED ADDITION
AT FIRST FLOOR
EXISTING BUILDING AREA: 975 SF
18'-0" 12'-0"
PROPOSED SITE PLAN
16'-0"
34'-0"
NEW S.B.
25'-10"
PROPOSED
BUILDING
ADDITION
FIRST FLOOR AREA: 609 SF
SECOND FLOOR AREA: 1650 SF
6'-0"
CLR.
2 2'-0"
66'-0"
SECOND FLOOR ADDITION
(E) SID
E
WA
L
K
24'-0"
DECK ABOVE
357 SF
DEMO (E) INTERIOR
REMODEL 1ST FLOOR
6" 6"
NEW ENTRY
C
O
N
C
R
E
T
E
WA
L
K
4'-10"
CURRENT EASEMENT
LINE FOR LOT 44
NEW 8'X10'
CONC PAD
& COMMON
TRANSFORMER
SCE.
3'-0"
YORBA LINDA
WATER DISTRICT
EASEMENT
BROKEN YOKE
10'-0"
SITE DATA:
FRONT SETBACK:
EXISTING: PROPOSED:
0'-0" 0'-0"
SIDE SETBACKS: 0'-0" 0'-0"
REAR SETBACK: 59'-10" 34'-0"
3"
ADA PATH OF TRAVEL FROM
(E) HANDICAPPED SPACE
(E) & (N) FRONT AND SIDES
0'-0" (ZERO) SET BACKS
AC PAVING
DELIVERIES
(N) MAIN ELECT.
SERVICE
RELOCATED TREE WELL
NEW TREE
SHARED TRASH AREA
P
U
B
LIC
PA
R
KIN
G
N 89°33'33" E
N 89°33'33" E
2 5.0
0'
100.00'
N
0 0
°
2 6'3
0 "
W
N
0 0
°
2 6'3
0 "
W
(E) TREE WELL
TO BE REMOVED
(E) ADA
PARKING
SIGN
(E) C
U
R
B
&
G
U
T
T
E
R
(E) SID
E
WA
L
K
FF: 0'-0"
REF: 391.40'
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-2.1
PROPOSED FIRST FLOOR PLAN 1/4" =1'-0" 1
P
R
O
P
O
S
E
D
F
I
R
S
T
F
L
O
O
R
P
L
A
N
P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
DECEMBER 4, 2021 START
DECEMBER 9, 2021 REVIEW
JANUARY 7, 2022 REVIEW
MAY 20, 2022 UPDATE
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
FEBRUARY 5, 2023 RE-DESIGN
MAY 4, 2023 REVIEW
MAY 10, 2023
C.U.P. SUBMITTAL
KEY NOTES
DESCRIPTION:
1 2
5'-0"
4 8
9 1
M
AIN
S
T
R
E
E
T
2 5'-0"
ADJACENT STRUCTURE
15'-6"
B
A-4.1
40-2"
PROPOSED ADDITION
NEW 8" THK. CMU WALLS, TYP.
C
A-4.1
D
A-4.1
NEW EXISTING
ADJACENT STRUCTURE
EXISTING CMU
WALL TO REMAIN
25'-10"
6'-0"
NEW ENTRY DOORS
BRIDGE ABV.
OPEN
RETAIL &
SERVICE
PREP KITCHEN
DECK ABOVE
2 2'-0" 1'-6" 1'-6"
16'-0"
0 1' 5' 10'
LEGEND
EXISTING STUD WALLS
WINDOWS
EXISTING ROOF / WALLS ABOVE
DOORS
NEW CMU WALLS
EXISTING BRICK MASONRY WALLS
NEW STUD WALLS
(E) WALLS DEMOLISHED
PROJECT NORTH
DEMO (E) WALLS
DEMO (E) WALL &
ENTRY DOORS
(E) STOREFRONT
TO REMAIN
(N) STRUCT COLUMN
FOR DECK SUPPORT
(E) SIDEWALK
(N) STAIRS
F.F.: 0'-0"
66'-0"
OPEN
2 3'-9"
F.V. IN
SID
E
C
L
E
A
R
1 2 3 4 5 6 7
14 13 12 11 10 9 8
3'-0"
3'-0" 3'-0"
16 15
36" WIDE
20 R @ 7 3/16 = 144" =12'-0"
7 3/16" RISERS
10.5 " TREADS
20 19 18 17
8"
(E) BRICK WALL FACE
AT NORTH P.L.
(E) BRICK WALL DEPTH
FROM EAST P.L.
5'-5"
1'-6"
EXISTING BUILDING AREA: 975 SF
EXISTING BLDG.
ALL GENDER
ACCESSIBLE
TOILET ROOM
VERIFY (E) BRICK STRUCTURE
5'-3"
6 T@ 10.5"
1'-2"
10'-6"
12 T @ 10.5"
3'-0"
9 3/4"
9'-0"
1'-6 1/2"
8'-0"
C
L
R.
TREE WELL RELOCATED
NEW TREE
REMOVE (E) TREE
FACE OF BRICK PILASTER
NORTH EAST P.L.
CORNER REF.
F.O.C
U
R
B
19'-0"
OUTDOOR
DINING
6'-0"
CLEAR
OUTDOOR DINING
SELF SERVICE
4 (4) AND 2 (2) =20 SEATS
SUGGESTED TRAFFIC BARRIER
PLANTERS POTS OR BOLLARDS
25'-10" 40-2"
A
A-4.1
OUTDOOR
PATIO
SEE SITE PLAN & SURVEY
FOR UTILITY BOXES.
(N) STRUCT COLUMN
FOR DECK SUPPORT
REMOVE (E) GYP.BD.
WALL FINISH , EXPOSED
EXISTING OLD BRICK WALL
FINISH
(E) 4X4 RETROFIT COLUMNS
TO REMAIN- REMOVE (E) WALL
FINISHES & FURRING.
(E) STEEL "I" COLUMN
TO REMAIN REMOVE
FURRING, TYP.
(E) STEEL "I" COLUMN
TO REMAIN REMOVE
FURRING, TYP.
(N) LANDING TO IINTERIOR
FACE OF STOREFRONT
4" GAP FOR CLEANING
(E) EXPOSED BRICK WALL
W/ RETROFIT COL. TO REMAIN
ELE
C
T
S
E
RV
MEAT
D/W 3" AGING
NEW INTERIOR FURRED
WALL PER CONST . PLAN
2'-0"
FIRST FLOOR ADDITION: 609 SF
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-2.2
PROPOSED SECOND FLOOR PLAN 1/4" =1'-0" 1
P
R
O
P
O
S
E
D
S
E
C
O
N
D
F
L
O
O
R
P
L
A
N
P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
DECEMBER 4, 2021 START
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
FEBRUARY 5, 2023 RE-DESIGN
MARCH 22, 2023
DESIGN REVISION
MAY 4, 2023
REVIEW
MAY 10, 2023
C.U.P. SUBMITTAL
KEY NOTES
DESCRIPTION:
1 2
5'-0"
4 8
9 1
M
AIN
S
T
R
E
E
T
2 5'-0"
ADJACENT STRUCTURE
ROOF BELOW
15'-6"
B
A-4.1
A
A-4.1
NEW SECOND FLOOR ADDITION
NEW 1-HR EXT WALLS
2x6 STUDS W/ PLAS. FINISH
ABOVE (E) BRICK WALLS
C
A-4.1
25'-10"
D
A-4.1
ADJACENT STRUCTURE
ROOF BELOW
BRIDGE
2 2'-0" 1'-6" 1'-6"
16'-0"
0 1' 5' 10'
LEGEND
EXISTING STUD WALLS
WINDOWS
EXISTING ROOF / WALLS ABOVE
DOORS
NEW CMU WALLS
EXISTING BRICK MASONRY WALLS
NEW STUD WALLS
(E) WALLS DEMOLISHED
PROJECT NORTH
6'-0"
C
L
R.
(E) CMU PARAPET WALL
AND ROOF STRUCTURE REMOVED
NEW 1ST FLOOR ADDITION BELOW (E) STRUCTURE BELOW
66'-0"
(E) PARAPET WALL
CUT IN NEW DOOR
TO DECK ADD TO TOP
MATCH (E) PROFILE
SOFFIT SHELF
OVER ENTRY RECESS
(N) 42" H. DECK RAILING
(N) CORNER POST CAPITAL
BOW STRING ROOF
CLERESTORY ABV.
CL
F.F.: 12'-0"
OUTDOOR
DECK
SECOND FLOOR
WEST WALL
WOOD STUDS
NO WINDOWS
OUTDOOR SEATING
SELF - SERVICE
6(4) = 24 SEATS
(N) CANVAS UMBRELLAS
NOTE: ADD DINING SHOWN IS SELF- SERVICE
42" H. RAILING
MAX 29 SEATS UPSTAIRS
42" H. RAILING
ALL GENDER
TOILET RM.
(E) STEEL "I" COLUMN
TO REMAIN REMOVE
FURRING, TYP.
(E) STEEL "I" COLUMN
TO REMAIN REMOVE
FURRING, TYP.
25'-0"
25'-0"
MEAT
CURING
WALK-IN
C
O
OLE
R
14'-11"
16'-6 1/4" 14'-0"
DN 3'-0"
2 5'-0"
1'-2"
66'-0"
40'-2"
FACE OF BRICK PILASTER
NORTH EAST P.L. CORNER REF.
15'-0"
CENTER OF NEW WIDE
FLANGE COLUMN ( BELOW)
FACE OF NEW WIDE
FLANGE COLUMN ( BELOW)
DINING
SELF- SERVICE
(5 SEATS)
KITCHEN
OPEN
(N) STAIRS
1 2 3 4 5 6 7
14 13 12 11 10 9 8
3'-0"
16 15
36" WIDE
20 R @ 7 3/16 = 144" =12'-0"
7 3/16" RISERS
10.5 " TREADS
20 19 18 17
10'-6"
12 T @ 10.5"
3'-0"
9 3/4" 1'-6 1/2"
OPEN
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-2.3
PROPOSED ROOF PLAN 1/4" =1'-0" 1
P
R
O
P
O
S
E
D
R
O
O
F
P
L
A
N
P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
DECEMBER 4, 2021 START
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
FEBRUARY 5, 2023 RE-DESIGN
MAY 4, 2023
REVIEW
MAY 10, 2023
C.U.P. SUBMITTAL
KEY NOTES
DESCRIPTION:
1 2
5'-0"
4 8
9 1
M
AIN
S
T
R
E
E
T
2 5'-0"
ADJACENT STRUCTURE
ROOF BELOW
B
A-4.1
A
A-4.1
C
A-4.1
25'-10" 40'-2"
D
A-4.1
ADJACENT STRUCTURE
ROOF BELOW
OUTDOOR DECK
BELOW
2 2'-0" 1'-6" 1'-6"
16'-0"
0 1' 5' 10'
LEGEND
NEW PARAPET WALLS
PROJECT NORTH
NEW 1ST FLOOR ADDITION BELOW (E) STRUCTURE BELOW
66'-0"
(E) PARAPET WALL
TO REMAIN EXTEND
FRONT PARAPET WALL
(N) HIGHER BOW STRING ROOF CL
NEW PARAPET O/ (E) WALL
CRICKET
(N) FLAT ROOF
(N) LOW ROOF
BELOW (E)
FRONT PARAPET
SCUPPER
& D.S., TYP.
1/4" :12
1/4" :12
NEW GABLE ROOF
SLATE SHINGLES
MATCH PARAPET ANGLE
RIDGE
R.D.
SCUPPER
& D.S., TYP.
R.D.
(N) LOW ROOF
BELOW (E)
FRONT PARAPET
R.D. & O.F.
R.D. & O.F.
1/4" :12
1/4" :12
ROOF HATCH
B.U.R.
CRICKET
CLERESTORY
WINDOWS IN
BOW STRING
TRUSS END WALL
CANT STRIP
NEW ROOF STRUCTURE
GABLE PARAPET DETAIL
EXTEND PARAPET FROM
(E) BRICK PARAPET
10"
(N) DECK EXTENSION OVER SIDEWALK
DECK DRAIN
R.D. & O.F.
R.D. & O.F.
1/4" :12
1/4" :12
MECH. SCREEN
ON TOP OF PARAPET
15'-6"
1/4" :12
1/4" :12
DECK DRAIN
MECH. SCREEN
ROOF DRAIN &
OVERFLOW
IN 2" RECESS
42" H. DECK RAILING
& POSTS
1/4" :12
1/4" :12
1/4" :12
1/4" :12
KITCHEN ROOF TOP MECH. EQUP. TO BE DETERMINED .
HIDDEN BEHIND MECH SCREEN.
1 NEW PARAPET @ NEW CMU WALL
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-3.1
PROPOSED EXTERIOR ELEVATIONS 1/4" =1'-0" 1
P
R
O
P
O
S
E
D
E
X
T
E
R
I
O
R
E
L
E
VAT
I
O
N
S
P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
DECEMBER 4, 2021 START
DECEMBER 9, 2021 REVIEW
JANUARY 7, 2022 REVIEW
MAY 20, 2022 UPDATE
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
MARCH 22, 2023
DESIGN REVISION
MAY 4, 2023 REVIEW
MAY 10, 2023
C.U.P. SUBMITTAL
0 1' 5' 10'
EAST ELEVATION
(E) HISTORIC FACADE TO REMAIN ( ENTRY DOORS MODIFIED & AWNING REMOVED) NEW FRONT DECK ADDITION AND SECOND FLOOR ADDITION BEYOND .
KEY NOTES
DESCRIPTION:
1 2
3 4
(N) CMU WALL PAINTED W/ MTL. COPING AT PARAPET
(E) STOREFRONT TO REMAIN
(N) H.M. DOOR & FRAME W/ SINGLE VISION LITE.
(N) SCUPPER DRAIN AND DOWNSPOUTS
5 (N) STL. MECH. SCREEN
WEST ELEVATION
NEW REAR ADDITION WALL
(E) GRADE A.C PAVING
2 6 (N) ENTRY DOORS 6'-0" PR. PATCH (E) WALL
7 1 3
4 F.F: 12-0"'
F.F: 0'-0"'
10'-8"
(E) GRADE A.C PAVING
ADJACENT BUILDING
1 2
5 (N) PAINTED STEEL WF DECK COLUMN W/ CONC BASE
HEAVY TIMBER BEAMS W/ MTL STRAPPING
(N) DECK RAILING HEAVY TIMBER W/ MTL. RAILING
(N) SLATE GABLE ROOF W/ WOOD FASCIA
BEHIND BRICK PARAPET
(N) PLASTER WALL ( ABOVE (E) BRICK WALL) AT P.L.
(N) ARCHED ROOF
(N) BOW STRING TRUSS W/ CLERESTORY WINDOWS
(E) GRADE SIDEWALK
8 9
10 11
12 11 10 9
SOUTH ELEVATION
(NORTH ELEVATION SIM.)
F.F: 12'-0"'
F.F: 0'-0"'
8'-8"
RECESS FOR ELECT
SERVICE EQUIP. BEYOND
RECESS FOR
ELECT SERVICE
EQUIP.
13 (N) DOOR TO DECK , CUT INTO (E) FRONT FACADE
6 11 12 9
13 17'-0"
2 5'-4"
12'-0"
5 2
5'-4"
12'-0" F.F: 12-0"'
12'-0"
2 5'-4"
2 7'-0"
2 7'-0"
ARTISAN
THE
2 0'-3"
2 0'-11" 7 1/2"
10 6'-0"
40'-2"
TOP OF (E) BRICK WALL
25'-10"
ROOF LINE O/ KITCHEN
8'-3"
(N) 3D THEME SIGN
7 4
8 (N) 2ND FLR.
7 8
3'-6"
4 (E) FRONT PARAPET
(N) EXTENDED PARAPET
MATCH (E) MATERIALS AND PROFILE
1ST FLOOR ADDITION EXISTING 1ST FLOOR
3'-0"
2 8'-4"
M
AX. H
EIG
H
T
ROOF LINE O/ KITCHEN
3'-0"
2 8'-4"
M
AX. H
EIG
H
T
2'-5"
12'-0"
3'-6"
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
A-4.1
PROPOSED BUILDING SECTIONS 1/4" =1'-0" 1
P
R
O
P
O
S
E
D
B
U
I
L
D
I
N
G
S
E
C
T
I
O
N
S
P
R
E
L
I
M
I
N
A
RY
D
E
S
I
G
N
DECEMBER 4, 2021 START
DECEMBER 9, 2021 REVIEW
JANUARY 7, 2022 REVIEW
MAY 20, 2022 UPDATE
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
MARCH 22, 2023
DESIGN REVISION
MAY 4, 2023
REVIEW
MAY 10, 2023
C.U.P. SUBMITTAL
SECTION D
17'-0"
16'-4"
(E) CONC. SLAB FLOOR & FOOTING
(E) 8" BRICK WALL @ PROPERTY LINE
(E) BLDG.
DEMO
(E) 8" CMU WALL
STEEL BEAM FRAME
PART OF STRUCT. RETROFIT
SECTION A
NOTE SECTIONS WHERE NOT FIELD SURVEYED.
INFORMATION IS COPY OF PREVIOUS BUILDING SECTIONS
FROM KEYSTONE DESIGN ASSOC. DATED 1991.
NEW ROOF STRUCTURE SLOPE @ 1/4" :12
TJ L @ 24" O.C.
MTL. PARAPET COPING
CONC. SLAB ON GRADE FOUNDATION
COMPACTED GRADE
ADDITION
8" THK CMU WALLS
WASHABLE CEILING
STL. MECH. SCREEN
DEMO (E) STRUCT AND
ROOF TRUSSES
SECTION B SECTION C
0 1' 5' 10'
9'-0"
2 5'-4"
WASHABLE CEILING
FLOOR STRUCTURE:
EPOXY FLOOR O/
LT. WEIGHT CONC FILL O/
PLYWOOD SHEATHING
18" TJI. @ 16" O.C.
PREP KITCHEN
PREP KITCHEN 10'-0"
10"
BRIDGE
N
(E
E
)
W
BR
D
IC
O
K
OR
FR
W
O
A
N
Y
T
C
W
UT
AL
IN
L
TO DECK
4'-0"
NEW GABLE ROOF OVER BRIDGE
EXPOSED BOW STRING TRUSSES
NEW ARCH ROOF
NEW FLAT FOOF BEYOND
CLERESTORY WINDOW AT
BOW STRING TRUSS
(E) SIDEWALK
6'-8"
(N) ENTRY DOORS
(N) STAIRS BEYOND
(E) SOFFIT AT MASONRY OPENING
RE- FRAME AS REQ.
SERVICE & RETAIL OUTDOOR PATIO
SECOND STORY ADDITION
2 5'-4"
(E) CONC. SLAB FLOOR & FOOTING
2 5'-4"
(E) CONC. SLAB FLOOR & FOOTING
HIGH ROOF W/ CLERESTORY BEYOND
BRIDGE
GABLE ROOF
SLOPE TO MATCH
PARAPET ANGLE
3'-6"
7'-1"
LOW ROOF
ABOVE (E) PARAPET
2 0
R
@
7 3/16 " =14
4"
17'-0"
EXPOSED BOW STRING TRUSSES
NEW ARCH ROOF
SERVICE
RR
NEW ROOF STRUCTURE SLOPE @ 1/4" :12
TJ L @ 24" O.C.
CONC. SLAB ON GRADE FOUNDATION
COMPACTED GRADE
8" THK CMU WALLS
WASHABLE CEILING
FLOOR STRUCTURE:
EPOXY FLOOR O/
LT. WEIGHT CONC FILL O/
PLYWOOD SHEATHING
18" TJI. @ 16" O.C.
PREP KITCHEN
WASHABLE CEILING
MTL. PARAPET COPING
STL. MECH. SCREEN
RAILING BEYOND
3'-6"
10'-4"
12'-0"
8'-6"
12'-0"
9'-6 1/2" 4'-8"
10'-4"
9'-6 1/2" 4'-8"
12'-0"
8'-11"
2'-7"
ADDED FRONT BRICK FACADE
2 7'-0"
18'-6"
8'-0"
2'-10"
STAIRS
12'-0"
MEAT
CURING 8'-0"
3'-0"
2'-0"
3'-0"
PREP KITCHEN
2 8'-4"
M
AX. H
EIG
H
T
2 8'-4"
M
AX. H
EIG
H
T
(SELF-SERVICE SEATING)
(SELF-SERVICE SEATING)
SERVICE
2 023
#21022
2821newportblvd.newportbeach,
california92663(949)673-2643
A-5.1
PERSPECTIVE SKETCHESPRELIMINARY DESIGN
4893 MAIN STREET
YORBA LINDA, CALIFORNIA 92886
"THE ARTISAN" MAY
10,2023
C.U.P.SUBMITTAL
2821newportblvd.newportbeach,
california92663(949)673-2643
8MAY2023
MAINSTREETVIEWLOOKINGSOUTH
2821newportblvd.newportbeach,
california92663(949)673-2643
14APRIL2023
APRIL14,2023
START
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
EX-1.0
EXISTING SITE PLAN 1/8" =1'-0" 1
E
X
I
S
T
I
N
G
F
I
R
S
T
F
L
O
O
R
P
L
A
N
F
I
E
L
D
M
E
A
S
U
R
E, A
S
-
B
U
I
LT
S
DECEMBER 7, 2021 START
EXHIBIT "A"
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
LOT 45, NEWMARK TRACT, IN THE CITY OF YORBA LINDA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 7, PAGES 45 AND 46 MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER O? SAID COUNTY.
PARCEL 2:
A NON- EXCLUSIVE EASEMENT FOR PARKING AND PUBLIC UTILITY PURPOSES, INCLUDING NOT
LIMITED TO SEWERS, CESSPOOLS, SEPTIC TANKS, WATER, ELECTRIC GAS AND TELEPHONE INSTALLATIONS SUBSTANTIALLY ALONG PROPERLY LINES, OVER:
THAT PORTION OF LOT 40 OF SAID NEWMARK TRACT, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHERLY CORNER OF SAID LOT 40; THENCE ALONG THE EASTERLY LINE OF SAID LOT 40, A DISTANCE OF 25.65 FEET THENCE IN A STRAIGHT LINE SOUTHWESTERLY TO A POINT IN THE SOUTHWESTERLY LINE OF LOT 40 DISTANT THEREON NORTH 43° 26' 39" WEST 25 FEET FROM THE SOUTHERLY CORNER OF LOT 40; THENCE SOUTH 43° 26' 39" EAST 25 FEET TO THE POINT OF BEGINNING.
THE WESTERLY 44 FEET OF LOTS 43, 45, 46 AND THE WESTERLY 44 FEET OF THE SOUTHERLY 3 INCHES OF LOT 47 OF THE NEWMARK TRACT AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 7, PAGES 45 AND 46 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
THE WESTERLY 30 FEET OF LOT 44 OF THE NEWMARK TRACT, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 7, PAGES 45 AND 46 OF MISCELLANEOUS MAPS,
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 323-304-14
DECEMBER 9, 2021 REVIEW
JANUARY 7, 2022 REVIEW
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
MAY 20, 2022 UPDATE
MAY 10, 2023
C.U.P. SUBMITTAL
PROJECT NORTH
2 5.0
0' 2
5.0 0' 2
5.0 0'
100.00'
2 5.2
5'
00.25'
LOT 46
LOT 44
LOT 43
M
AIN
S
T
R
E
E
T
PARCEL 1
PARCEL 2
44.00'
APN: 323-304-14
LEGEND
PARCEL 2: EASMENT
EASMENT FOR SEWER PIPE
RETAIL SPACE #1
RETAIL SPACE #2
EXISTING 1 STORY BUILDING
LOT 39
LOT 40
40'-0"
30.00'
PARCEL 1: PROPERTY IN QUESTION
LOT 42
59'-10" 40'-2"
2 5'-0"
LOT 45
IMPERIAL HIGHWAY
0 2' 8' 16'
EXISTING BUILDING AREA: 975 SF
SHARED TRASH AREA
N 89°33'33" E
N
0 0
°
2 6'3
0 "
W
2 5.0
0' 2
5.0 0' 2
5.0 0' 2
5.2 5'
100.00' N 89°33'33" E
SITE DATA:
FRONT SETBACK:
EXISTING:
0'-0"
SIDE SETBACKS: 0'-0"
REAR SETBACK: 59'-10"
LOT AREA: 2,500 SF (.057 AC)
LOT COVERAGE: 975 SF/ 2,500SF= 39%
SETBACKS:
P
U
B
LIC
PA
R
KIN
G
(E) TREE &
TREE WELL
(E) SIDEWALK
2 025
#21022
2821newportblvd.newportbeach,
california92663(949)673-2643
EX-2.1
EXISTINGFIRSTFLOORPLAN
1/4"=1'-0"
1 EXISTING FIRST FLOOR PLAN
FIELD MEASURE, AS-BUILTS
DECEMBER4,2021START
DECEMBER9,2021REVIEW
JANUARY7,2022REVIEW
4893 MAIN STREET
YORBA LINDA, CALIFORNIA 92886
"THE ARTISAN" MAY 20
,2022UPDATE
MAY10,2023
C.U.P.SUBMITTAL
01'
5'10'
KEYNOTES
DESCRIPTION:
1(E)8"BRICKWALLS
2345678910 LE
GEND
EXISTINGSTUDWALLS
EXISTINGWINDOWS
EXISTINGROOF/WALLSABOVE
EXISTINGDOORS
PROJECTNORTH
EXISTINGCMUWALLS
EXISTINGBRICKMASONRYWALLS
8'-0" 3'-4" 2'-0" 2'-0" 4'-0" 1'-4" 3'-0"
6'-7"
5'-9" 7'-0"
4891 MAIN STREET
RETAILSPACE#1
RETAILSPACE#2
TOILET
ELECT. METERS
LARGEPULLBOXW/UNDERSLABSWEEP
ADJACENTSTRUCTURE
(E)SIDEWALK
SERVICE LOT AC PAVING
A
EX-4.1
B
EX-4.1
MTL.SECURITYSCREENDOORS
(E)8"CMUWALLPARTOFPREVIOUS
STRUCTURALREMODEL
(E)2XWOODSTUDWALLS,GYP.BD.FINISH
3 2
1 1
(E)4X4D.F.POSTS
(E)FIXEDGLASSINWOODFRAMESTOREFRONTWINDOW
MTL.SECURITYGRILLEBEHINDWINDOW
8 MTL.ROLL-UPDOOR
98 7
6 55
4 4
(E)WFCOLUMNSPARTOFPREVIOUS
STRUCTURALREMODEL
10 TOILET
ADJACENTSTRUCTURE
(E)TREEWELL
(E)TREE
(E) CURB
36'-83/8"
GAS
25'-0"
LOT46
LOT44
LOT45
51/8"
40'-2"
57/8"
4'-10"
CONCRETE WALK
7'-7"8'-01/2"8'-0"
8'-01/2"4'-73/8"
12'-61/2"
31/2"
1'-93/4" 8'-0 1/8"
12'-8 3/4"
1'-9 3/4"
2'-111/2"
2'-111/2"
5'-5"
3"
11/2"
1'-71/2"
6 7/8"
5'-4 1/8"
10'-1 5/8"
21/2"
7'-81/4"
4"
1'-71/2"
7'-11 1/4"
5 7/8"
11 7/8"
24'-11 7/8"
16'-51/4"
TV
GAS GAS
91/2"
3"
9 1/2" 9 1/8"
91/8"
1'-2"
25'-0"
2 025
#21022
2821newportblvd.newportbeach,
california92663(949)673-2643
EX-3.1
EXISTINGEXTERIORELEVATIONS
1/4"=1'-0"
1 EXISTING EXTERIOR ELEVATIONS
FIELD MEASURE, AS-BUILTS
DECEMBER4,2021START
DECEMBER9,2021REVIEW
JANUARY7,2022REVIEW
4893 MAIN STREET
YORBA LINDA, CALIFORNIA 92886
"THE ARTISAN" MAY 20
,2022UPDATE
MAY10,2023
C.U.P.SUBMITTAL
01'
5'10'
WESTELEVATIONEASTELEVATION
16'-0"±
17'-9"
17'-0"
1'-10"
(E)ALLVERTICALDIMENSIONSFROMPHOTOGRAPH-VERIFY
(E)ALLVERTICALDIMENSIONSFROMPHOTOGRAPH-VERIFY
1 1515
1314
977
2 1
3 4567
10 11
12 KEYNOTES
DESCRIPTION:
1(E)8"BRICKWALLS
234567891011121314
(E)PAINTEDBRICKWALLATFRONTFACADE
(E)CMUWALLATREARFACADE:UNPAINTEDPLAINBLOCK
(E)BRICKBULKHEADLEDGEFORSTOREFRONT
(E)WOODFRAMEDFIXEDSTOREFRONTSINGLEGLAZED
(E)ENTRANCEDOORS-WOODFRENCHDOOR
(E)METALSECURITYGRILLBEHINDSTOREFRONTGLAZING
(E)METALSECURITYSCREENDOORS
(E)ROLL-UPDOOR
(E)CANVASAWNING
(E)MERCHANTSIGNS-PAINTEDWOOD
(E)EXERIORLAMPS
(E)SCUPPERDRAINANDDOWNSPOUTS
(E)METALLOUVEREDATTICVENTS
15(E)ELECTSERVICEMETERS
7
2025
#21022
2821 newport blvd. newport beach,
california 92663 (949)673-2643
EX-4.1
EXISTING BUILDING SECTIONS 1/2" =1'-0" 1
E
X
I
S
T
I
N
G
B
U
I
L
D
I
N
G
S
E
C
T
I
O
N
S
F
I
E
L
D
M
E
A
S
U
R
E, A
S
-
B
U
I
LT
S
DECEMBER 4, 2021 START
DECEMBER 9, 2021 REVIEW
JANUARY 7, 2022 REVIEW
4 8
9 3
M
A
I
N
S
T
R
E
E
T
Y
O
R
B
A
L
I
N
D
A, C
A
L
I
F
O
R
N
I
A
9 2
8 8
6 "
T
H
E
A
RT
I
S
A
N
"
MAY 20, 2022 UPDATE
MAY 10, 2023
C.U.P. SUBMITTAL
0 1' 5' 10'
SECTION B
15'-6"
17'-0"
16'-4"
12'-0"
(E) CONC. SLAB FLOOR & FOOTING
2X STUD WALL
(E) ATTIC
GYP. BD. CEILING
1/2" PLYWOOD
INTERMEDIATE JOISTS @ 32" O.C.
(E) ROOF STRUCTURE
(E) TRUSSES @ 32" O.C.
(E) 8" BRICK WALL @ PROPERTY LINE
(E) RETAIL SPACE (E) TOILET
8" CMU WALL PART OF
STRUCT RETROFIT
(E) STEEL BEAM
STEEL BEAM FRAME
PART OF STRUCT. RETROFIT
2x8 CEILING JOISTS @ 16" O.C.
32" 16"
SECTION A
8'-0"
12'-0"
17'-0"
(E) STUDS @ 16" O.C.
BOT. CORD TRUSS
VA
RIE
S
(E) ROOF STRUCTURE
TRUSSES @ 32" O.C.
1/2" PLYWOOD
(E) CONC. SLAB FLOOR & FOOTING
GYP. BD. CEILING
2x8 CEILING JOISTS @ 16" O.C.
1X6 WEB MEMBERS
2X4
2X6
(E) 8" BRICK WALL
4X8 BEAM
4X4 D.F. POSTS
BOT. OF JOISTS
(E) 8" BRICK WALL
NOTE SECTIONS WHERE NOT FIELD SURVEYED.
INFORMATION IS COPY OF PREVIOUS BUILDING SECTIONS
FROM KEYSTONE DESIGN ASSOC. DATED 1991.
FINANCE DEPARTMENT
DATE: FEBRUARY 18, 2025
TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: SUNNY HAN, FINANCE DIRECTOR / CITY TREASURER
SUBJECT: FISCAL YEAR 2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT
RECOMMENDATION
It is recommended that the City Council receive and file the Fiscal Year 2023-24 Annual Comprehensive Financial Report (ACFR).
BACKGROUND
The City, Municipal Financing Authority, Housing Authority, and Successor Agency to the former Redevelopment Agency are audited annually by an independent auditing firm. Only the City is required to prepare financial statements under accounting standards, while the other entities are not required to prepare separate financial statements. These entities are therefore included within the audited financial statements of the City as blended component units, other than the Successor Agency, which is included as a private-purpose trust fund.
The audit process takes several months, beginning after the books are closed (typically in September), and concluding several months later once the financial statements have been prepared. The financial statements were reviewed by the Finance Committee on February 4, 2025, where they recommended forwarding the report to the City Council.
DISCUSSION
The independent auditing firm of Rogers, Anderson, Malody & Scott, LLP (RAMS), has completed their audit of the City for the year ended June 30, 2024. This audit was the third year of a three-year contract (with the option of two additional one-year terms) with the firm.
As part of the contract with RAMS, the City’s financial statements have been prepared by the auditors with significant input from staff, particularly regarding the notes to the financial statements. Management’s Discussion and Analysis included at the beginning of the ACFR, has been prepared by staff to summarize significant aspects of this year’s financial activity and changes versus the prior year. While elements of the ACFR have been prepared by the auditors, it is management’s responsibility to review, edit and stand behind the financial statements, as well as the related notes and other disclosures.
Within the ACFR is the Independent Auditor’s Report, which includes their opinion that the financial statements are fairly presented in conformity with generally accepted accounting principles (a “clean” opinion). Also attached are 1) the Management Report and Auditor’s
FISCAL YEAR 2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT P a g e | 2
Communication Letter, which provides additional information regarding the results of the audit that are not contained in the Independent Auditor’s Report found in the ACFR and 2) The Auditor’s Report on Internal Controls.
FISCAL IMPACT
There is no direct fiscal impact associated with this report. The cost of the annual audit is included in the adopted budget.
ATTACHMENTS
1. ACFR for Fiscal Year Ended June 30, 2024
2. Management Report and Auditor’s Communication Letter
3. Report on Internal Controls
CITY OF YORBA LINDA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE
FISCAL YEAR ENDED JUNE 30, 2024
City Council
Janice Lim
Mayor
Carlos Rodriguez Tara Campbell
Mayor Pro Tem Council Member
Peggy Huang Shivinder Singh
Council Member Council Member
Prepared by the Finance Department
Sunny Han, Finance Director / City Treasurer
Sophia Leung, Financial Services Manager
4845 Casa Loma Avenue
Yorba Linda, CA 92886
(714) 961-7140
THIS PAGE INTENTIONALLY LEFT BLANK
INTRODUCTORY SECTION
City of Yorba Linda
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal ................................................................................................................................ i City Officials and Organizational Chart ................................................................................................. iv GFOA Award Certificate ......................................................................................................................... v FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................................ 1 Management’s Discussion and Analysis (Required Supplementary Information - Unaudited) .................................................................................................................. 4
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ....................................................................................................... 17 Statement of Activities ............................................................................................................ 18 Fund Financial Statements:
Balance Sheet – Governmental Funds .................................................................................. 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ....................................................................................................... 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................... 24 Statement of Fund Net Position – Proprietary Funds ............................................................. 25 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ............................................................................................................. 26 Statement of Cash Flows – Proprietary Funds ....................................................................... 27 Statement of Fiduciary Net Position – Fiduciary Funds ............. …..…………………………...28 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ...................................... 29 Notes to the Basic Financial Statements ...................................................................................... 30 Required Supplementary Information (Unaudited)
Budgetary Comparison Schedules:
General Fund ................................................................................................................... 87 Affordable Housing Special Revenue Fund .................................................................... 88 Miscellaneous Grants Special Revenue Fund ................................................................ 89 Public Library Special Revenue Fund ............................................................................. 90 Landscape Maintenance Assessment District Special Revenue Fund ........................... 91 Infrastructure Assets Reported Using the Modified Approach ..................................................... 92
City of Yorba Linda
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS (Continued)
FINANCIAL SECTION (Continued):
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years ........................................................................................................................ 94 Schedule of Pension Contributions – Last 10 Years .................................................................... 97 Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years .................. 99 Schedule of OPEB Contributions – Last 10 Years ..................................................................... 100 Notes to Required Supplementary Information ........................................................................... 101 Other Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Improvements Capital Projects Fund ......................................................... 102 Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds ............................................. 105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ......................................................... 109 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Special Revenue Funds:
Gas Tax .......................................................................................................................... 113 Traffic Safety .................................................................................................................. 114 CDBG Grant ................................................................................................................... 115 Citizens Option for Public Safety ................................................................................... 116 AQMD ............................................................................................................................ 117 Measure M2 ................................................................................................................... 118 SB-2 ............................................................................................................................... 119 Mortgage Assistance Program ....................................................................................... 120 PEG ................................................................................................................................ 121 Road Maintenance and Rehabilitation ........................................................................... 122 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Funds:
Parking In-Lieu ............................................................................................................... 123 Park in Lieu ..................................................................................................................... 124 Lighting and Signal Project Improvements ..................................................................... 125 Master Plan of Drainage ................................................................................................ 126 Traffic Signal Improvements .......................................................................................... 127
City of Yorba Linda
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS (Continued)
STATISTICAL SECTION:
Net Position by Component ............................................................................................................... 128 Changes in Net Position .................................................................................................................... 130 Fund Balances of Governmental Funds ............................................................................................ 134 Changes in Fund Balances of Governmental Funds ......................................................................... 136 Assessed Value and Estimated Actual Value of Taxable Property ................................................... 138 Direct and Overlapping Property Tax Rates ...................................................................................... 139 Principal Property Taxpayers ............................................................................................................ 140 Property Tax Levies and Collections ................................................................................................. 141 Ratios of Outstanding Debt by Type ................................................................................................. 142 Ratios of General Bonded Debt Outstanding .................................................................................... 143 Direct and Overlapping Debt ............................................................................................................. 144 Legal Debt Margin Information .......................................................................................................... 145 Demographic and Economic Statistics .............................................................................................. 146 Principal Employers ........................................................................................................................... 147 Full-Time Equivalent City Government Employees by Function ....................................................... 148 Operating Indicators by Function ........................................................................................................ 149 Capital Asset Statistics by Function/Program ................................................................................... 150
THIS PAGE INTENTIONALLY LEFT BLANK
i
December 19, 2024
Honorable Mayor, Members Of The City Council, and Citizens of the City of Yorba Linda:
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Yorba Linda (the City) for the fiscal year ended June 30, 2024.
This report consists of management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP). Because the costs of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement.
The City’s financial statements have been audited by Rogers, Anderson, Malody & Scott, LLP, a firm of certified public accountants. We are pleased to report that the audit firm granted the City an unmodified (clean) opinion for the financial statements of the City for the year ended June 30, 2024. The auditor’s opinion can be found in the Financial Section of this report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the financial statements in the form of a Management Discussion and Analysis (MD&A). This transmittal letter is designed to complement and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report.
City of Yorba Linda Profile
The City which has a population of 66,087 and is 20.0 square miles, is located in the northeast section of Orange County. The City is strategically located in Southern California, 37 miles from downtown Los Angeles and 13 miles from downtown Santa Ana.
Neighboring communities include Anaheim, Brea, Placentia, and Corona. Amongst the attractions located in the City is the Richard Nixon Presidential Library.
The City is a General Law City and was incorporated in 1967. Since its incorporation, the City has committed itself to providing the highest quality public services at the lowest possible cost. This has been accomplished using contract service providers combined with the development of a skilled, customer service-oriented City workforce. The City has a Council-Manager form of government, with a City Council comprised of five members
ii
elected bi-annually to four-year alternating terms. City Council members are elected atlarge, on a non-partisan basis, with the City Council annually selecting a Mayor from its members. The City Council appoints the City Manager and City Attorney. The City Manager is responsible for implementing the policy direction of the City Council and directing the day-to-day administration and management of City business within all City departments.
The City provides a wide range of municipal services to its residents either directly or by contract with private vendors or other government agencies. These services include construction and maintenance of streets and other infrastructure, planning and zoning, recreational activities, golf course, library services, and general administrative and support services provided through a staff of approximately 116 full-time employees. The City contracts with the Orange County Sheriff’s Department to provide Police Services, and Fire Protection Services are provided by the Orange County Fire Authority. In addition to general City activities, the City Council is financially accountable for the Yorba Linda Municipal Financing Authority and the Yorba Linda Housing Authority. These entities are therefore included as an integral part of the City’s financial statements. Additional information regarding these legally separate entities can be found in Note 1 in the notes to the basic financial statements.
The annual budget serves as the foundation for the City’s financial planning and control.
The City Council holds a public hearing and adopts an annual budget for all funds. The City Council may modify appropriations with majority approval. The budgets are adopted and presented on a basis consistent with US GAAP. The legal level of expenditures is controlled at the department level within each fund, with budget transfers between departments or funds requiring approval by the City Council. Supplemental budget appropriations of an amount greater than $25,000 require approval by the City Council, while smaller changes to the budget may be approved by the City Manager and are reported quarterly to the City Council. Appropriations lapse at the end of each fiscal year unless they are encumbered for purchases in process, related to capital projects, or specifically approved by the City Council for re-appropriation in the following fiscal year.
Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted.
Economic Conditions and Outlook
As the City continues to recover from the impacts of the global COVID-19 pandemic, supply chain shortages and inflationary pressures on normal business activities are expected to continue to set the tone for economic conditions for the next fiscal year. The City relies heavily on taxes, its primary source of revenue, comprising approximately 77 percent of all General Fund revenues.
iii
Property Tax
The City of Yorba Linda’s assessed valuations are very strong, reflecting both new development and increased property values. The City’s Fiscal Year 2024/25 assessed property value grew 10.3 percent to $20.4 billion, up from 5.7 percent growth in prior year.
This strong performance, coupled with steady year-over-year growth, reflects a stable property tax base that can weather steep declines in real estate markets. For Fiscal Year 2023/24, secured property tax revenue collections totaled $13.5 million. For Fiscal Year 2024/25, secured property taxes are estimated at $14.3 million, reflecting a 5.9 percent increase.
Sales Tax
The City’s sales tax revenue has decreased over the past two fiscal years due to continued high interest rates, the closure of several big box retail stores, the fluctuation in gasoline prices, and pressure from rising household costs (e.g., insurance). Pressure from lower prices and deflation in several goods categories is expected to restrain sales tax growth in the short term. Additionally, the recent actions taken by the Federal Reserve to lower interest rates will take time to translate to sales tax growth. As such, the City continues to be cautious with its financial resources and remains committed to maintaining a balanced operating budget and one of the strongest General Fund budget reserves in Orange County.
$12.6 $13.5 $14.1 $14.9 $15.6 $16.3 $16.9 $17.5 $18.5
$20.4
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 City of Yorba Linda
Total Assessed Valuation
Fiscal Years 2015/16 ‐ 2024/25
(in billions)
iv
Long-Term Financial Policies and Planning
A portion of fund balance reserves in the General Fund is set aside and committed for future emergencies, economic contingencies, and known long-term needs pursuant to a City Council-approved Budget Reserves Policy (the Policy). The Policy requires operating reserves to be maintained at a level of at least 50% of budgeted General Fund expenditures (excluding transfers) and other reserves for long-term needs to be established and funded in a prudent manner. As of June 30, 2024, the City’s General Fund had budget reserves of approximately $44.2 million. Of this amount, $23.3 million
v
is committed to operating reserves for emergencies and economic contingencies. An amount of $3.9 million is committed to special reserves for facilities, road maintenance, self-insurance, and other long-term needs. Assigned fund balance amounts to approximately $14.9 million which is for budget carryovers and encumbrances. Nonspendable fund balance of approximately $82,000 is dedicated to prepaid costs. The remainder of fund balance reserves, amounting to approximately $2.1 million, is unassigned and available for any purpose at the direction of the City Council. This level of General Fund reserves is 61.06% of budgeted General Fund expenditures and well within the Council Policy.
Major Initiatives
Shop Dine Support Yorba Linda
The City kicked off its “Shop Dine Support Yorba Linda” campaign in November 2024, in partnership with the Yorba Linda Chamber of Commerce, to encourage residents to support local small businesses and strengthen community connections. A QR code is available through the City, which provide access to an interactive business directory that allows residents and visitors to effortlessly discover and explore a wide variety of local businesses, from unique boutiques and family-owned restaurants to essential services across the community.
Measure JJ
Measure JJ, Yorba Linda Local Control, Residential Neighborhood, Open Space Protection Measure, was placed on the November 2024 General Election ballot to attain full certification of Yorba Linda’s revised 2021-2029 Housing Element consistent with Yorba Linda’s Right-to-Vote Amendment (“Measure B”), which requires voter review to approve or reject major adjustments to the City’s land use documents. Through an extensive public outreach campaign which began in 2023 encouraging residents to plan for the future of housing in Yorba Linda, over 90% of voters approved Measure JJ.
Capital Improvement Program
Annually, the City updates a seven-year Capital Improvement Program (CIP). Planned capital expenditures during Fiscal Year 2024/25 are budgeted at approximately $31.7 million. Funding comes from multiple sources, including existing funds, user fees, impact
vi
fees, and regional, state, and federal funds. The CIP consists primarily of transportationrelated projects, landscaping improvements, and parks & recreation facilities. In FY 2023/24, some of the major projects completed included Zone 5/6B of the City’s Annual Pavement Improvement Program and construction of Bastanchury Road Widening from Casa Loma to Eureka.
Acknowledgements
The preparation and publication of this report would not have been possible without the dedication, professionalism, and teamwork of the entire staff of the Finance Department.
We would like to express our appreciation to all members of the department who assisted in its preparation. This financial report is a clear indication that the City’s financial position is solid. We would like to thank the Mayor and the City Council for their continued support in maintaining the highest standards of professionalism and conservatism in the management of the City’s finances. Without the energy, ideas, and hours put forth by the City Council, Commissioners, staff, and the citizens of Yorba Linda, this community would not live up to its motto of “Land of Gracious Living.”
Respectfully submitted,
Mark Pulone Sunny Han
City Manager Finance Director / City Treasurer
City of Yorba Linda
City Officials and Organizational Chart
-ivLEGISLATIVE OFFICIALS
Janice Lim ............................................................................................................................. Mayor Carlos Rodriguez ................................................................................................... Mayor Pro Tem Tara Campbell ...................................................................................................... Council Member Peggy Huang ........................................................................................................ Council Member Shivinder Singh ..................................................................................................... Council Member
APPOINTED CITY OFFICIALS
Mark Pulone .............................................................................................................. City Manager Todd Litfin ................................................................................................................. City Attorney
CITY OFFICIALS
David Christian .......................................................................................... Assistant City Manager Nate Farnsworth ...................................................................... Community Development Director Sunny Han ................................................................................. Finance Director / City Treasurer Mike Kudron ...................................................................................... Parks & Recreation Director Jamie Lai ............................................................................. Public Works Director / City Engineer Carrie Lixey ........................................................................................................... Library Director De Anne Wigginton .................................................................................. Chief of Police Services
ORGANIZATIONAL CHART
CITIZENS OF YORBA LINDA
CITY MANAGER
COMMUNITY
DEVELOPMENT FINANCE
LIBRARY PARKS & RECREATION
POLICE SERVICES PUBLIC WORKS
ADMINISTRATIVE
SERVICES
CITY CLERK
HUMAN RESOURCES
RISK MANAGEMENT
CITY ATTORNEY CITY COUNCIL COMMISSIONS
-vPage 227 of 486
FINANCIAL SECTION
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net
PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)
MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA
MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Auditor’s Report
The Honorable City Council
City of Yorba Linda, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Yorba Linda (the entity), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (GAS), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are required to be independent of the entity and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
-2-
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about entity’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion(s). Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
-3-
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the entity’s basic financial statements. The combining nonmajor fund financial statements and the budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report/annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2024 on our consideration of entity’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering entity’s internal control over financial reporting and compliance.
San Bernardino, California
December 19, 2024
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-4-
As management of the City of Yorba Linda (“City”), we offer readers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal.
Financial Highlights
Financial highlights for the fiscal year ended June 30, 2024 are outlined below. Details can be found in the Government-Wide and Fund Financial Statement analysis section of this MD&A.
Government-Wide Financial Statements
The City of Yorba Linda’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $567,404,308. Total net position increased by $12,002,218 or 2.2 percent primarily due to the additions made to capital assets for infrastructure improvements, including the Zone 5/6B Street Improvement Program and Bastanchury Road Widening Project. The City’s Net Pension Liability increased by $818,948, or 3.3% and Net Other PostEmployment Benefit (OPEB) Liabilities decreased by $865,317, or 4.8%, due to changes in balances in accordance with Government Accounting Standards Board (GASB) Statements No. 68, Accounting and Financial Reporting For Pensions, and 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, respectively. Deferred outflows of resources decreased by $282,707 or 2.4 percent primarily due to actual economic and demographic plan experience differing from actuarial assumptions, and differences between projected and actual earnings on Pension Plan investments used to determine the City’s net pension liability. Deferred inflows of resources increased by $594,130 or 9.0 percent primarily due to changes in balances in accordance with GASB 87, Leases.
Program revenues increased by $3,648,386, or 9.9%, primarily due to increased grant revenues for capital projects, such as the OCTA grants for Bastanchury Road Improvements and Yorba Linda Boulevard Widening. Additionally, revenues from Black Gold Golf Club have increased by $1,017,600, or 10.7%, primarily in the green fee and food & beverage operations categories, due to renewed golf participation since the COVID-19 pandemic, and the continued popularity of Derricks Grille, both at Black Gold and for Center Wedding and Events at the Yorba Linda Community Center Expenses increased by $3,576,704, or 4.6%, primarily due to: 1) costs incurred to begin implementation of the Eighth Amendment to the Affordable Housing Agreement with Evergreen Villas LP, to be funded by a $3.1 million CalOptima grant; 2) an increase in the administrative charge to other City funds; 3) increases to the Orange County Sheriff’s Department contract for law enforcement services; and 4) increased operating costs at Black Gold Golf Club due to ongoing inflation and wage increases required to attract and retain staff.
Total fund balance of the General Fund is $44,233,621, compared to $44,428,734 in the prior fiscal year, a $195,113, or 0.4 percent decrease due to the planned use of reserves for infrastructure improvement projects such as the Zone 5/6B Street Improvement Program and Bastanchury Road Widening Project. At the end of the current fiscal year,
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-5-
unassigned fund balance for the General Fund was $2,142,419 or 4.9% of the amount of General Fund operating expenditures. The General Fund unassigned balance of $2,142,419 is in addition to $23,253,569 operating reserve established by City Council resolution.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: (1) governmentwide financial statements, (2) fund financial statements, and (3) the notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.
Government-wide Financial Statements. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents financial information on all the City’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development, parks and recreation, library and public works. The business-type activities of the City include the Black Gold Golf Course.
The government-wide financial statements include not only the City itself (known as the primary government), but also two blended component units, the Yorba Linda Municipal Financing Authority (MFA) and the Yorba Linda Housing Authority. Although legally separate, these entities function for all practical purposes as departments of the City and therefore have been blended as part of the primary government. The Successor Agency to the Yorba Linda Redevelopment Agency (Successor Agency) is also included as a private-purpose trust fund since it would be misleading to exclude the Successor Agency due to the nature and significance of the relationship between the City and the Successor Agency. The activity of the Successor Agency is reported with the City’s fiduciary funds, which are not included in the government-wide statements, since the resources of those funds are not available to support the City’s own programs.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-6-
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains twenty-one individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General Fund, the Affordable Housing Fund, the Miscellaneous Grants Fund, the Public Library Fund, the Landscape Maintenance Assessment District Fund and the Capital Improvements Fund, which are considered to be major funds. Data from the other fifteen governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.
The City of Yorba Linda adopts an annual appropriated budget for its General Fund, major Special Revenue Funds and Capital Project Funds. Budgetary comparison statements have been provided for these funds to demonstrate compliance with this budget.
Proprietary Funds. The City maintains one Enterprise Fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for the Black Gold Golf Course.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-7-
Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements.
Required Supplementary Information. The Required Supplementary Information provides additional information that is useful to users of the financial statements, including budgetary comparison schedules for the Governmental Funds, information regarding reporting of infrastructure asset values, and certain additional information regarding the City’s pension and other post-employment benefits liabilities.
Combining statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. The City of Yorba Linda’s assets and deferred outflows exceeded liabilities and deferred outflows by $567,404,308 at the close of 2024.
CITY OF YORBA LINDA
Statement of Net Position
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Current and other assets 138,973,562 $ 141,740,050 $ 2,159,813 $ 479,564 $ 141,133,375 $ 142,219,614 $ Capital assets, net 467,348,312 455,299,531 22,678,370 23,255,857 490,026,682 478,555,388 Total assets 606,321,874 597,039,581 24,838,183 23,735,421 631,160,057 620,775,002 Deferred outflows of resources 11,682,002 11,964,709 - - 11,682,002 11,964,709 Current liabilities 6,122,930 8,667,129 2,548,338 1,950,935 8,671,268 10,618,064 Noncurrent liabilities
Long-term liabilities 2,866,462 2,327,384 633,679 881,416 3,500,141 3,208,800 Lease Revenue Financings 13,046,391 13,838,567 - - 13,046,391 13,838,567 Net OPEB liability 17,167,952 18,033,269 - - 17,167,952 18,033,269 Net pension liability 25,884,242 25,065,294 - - 25,884,242 25,065,294 Total liabilities 65,087,977 67,931,643 3,182,017 2,832,351 68,269,994 70,763,994 Deferred inflows of resources 7,167,757 6,573,627 - - 7,167,757 6,573,627 Net position:
Net investment in capital assets 454,301,921 441,460,964 22,118,026 22,430,867 476,419,947 463,891,831 Restricted 83,179,514 86,500,311 - - 83,179,514 86,500,311 Unrestricted 8,266,707 6,537,745 (461,860) (1,527,797) 7,804,847 5,009,948 Total net position 545,748,142 $ 534,499,020 $ 21,656,166 $ 20,903,070 $ 567,404,308 $ 555,402,090 $ The largest portion of the City’s net position (84.0%) is its investment in capital assets (e.g., land, buildings, infrastructure, machinery, equipment, and construction in progress) less the related outstanding debt used to acquire those assets. The City uses these capital assets to provide service to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided by other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-8-
The portion of net position invested in capital assets increased by $12,528,116, or 2.7 percent, versus the prior year, which was primarily due to the addition of various infrastructure projects, such as the Zone 5/6B Street Improvement Program, Bastanchury Road Widening Project, and Yorba Linda Road Widening Project.
An additional portion of the City’s net position, $83,179,514 represents resources that are subject to external (legally imposed or statutory) restrictions on how they may be used. As of the end of the fiscal year, the City’s unrestricted net position was $7,804,847.
The City’s net position increased by $12,002,218, or 2.2 percent from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities.
A condensed summary of activities for the period ended June 30, 2024, and the prior fiscal year is illustrated in the table below.
CITY OF YORBA LINDA
Changes in Net Position
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Revenues
Program revenues:
Charges for services 13,832,811 $ 13,983,009 $ 10,530,453 $ 9,512,853 $ 24,363,264 $ 23,495,862 $ Operating contributions and grants 4,009,219 7,655,338 - - 4,009,219 7,655,338 Capital contributions and grants 12,202,200 5,775,097 - - 12,202,200 5,775,097 General revenues:
Taxes:
Property taxes 34,245,240 32,870,894 - - 34,245,240 32,870,894 Sales taxes 8,396,106 8,765,991 - - 8,396,106 8,765,991 Franchise taxes 2,547,619 2,517,208 - - 2,547,619 2,517,208 Transient occupancy taxes 554,637 541,747 - - 554,637 541,747 Business license taxes 441,623 426,601 - - 441,623 426,601 Other taxes 595,756 546,726 - - 595,756 546,726
Motor vehicle in lieu - unrestricted 97,804 77,281 - - 97,804 77,281 Investment income 4,100,541 1,780,988 77,460 11,732 4,178,001 1,792,720 Gain on sale of property 315,343 14,595 - 22,320 315,343 36,915 Other 1,632,854 1,875,533 (10,481) - 1,622,373 1,875,533 Transfers 15,455 - (15,455) - - -
Total revenues 82,987,208 76,831,008 10,581,977 9,546,905 93,569,185 86,377,913 Expenses
General government 13,665,478 11,631,484 - - 13,665,478 11,631,484 Public safety 14,209,525 13,731,482 - - 14,209,525 13,731,482 Community development 4,645,214 3,847,863 - - 4,645,214 3,847,863 Parks and recreation 16,229,130 17,569,992 - - 16,229,130 17,569,992 Library 6,321,929 5,433,637 - - 6,321,929 5,433,637
Public works 16,128,067 16,052,471 - - 16,128,067 16,052,471 Interest on long-term debt 538,743 573,477 - - 538,743 573,477 Golf - - 9,828,881 9,149,857 9,828,881 9,149,857
Total expenses 71,738,086 68,840,406 9,828,881 9,149,857 81,566,967 77,990,263 Change in net position 11,249,122 7,990,602 753,096 397,048 12,002,218 8,387,650 Net position, beginning 534,499,020 526,508,418 20,903,070 20,506,022 555,402,090 547,014,440 Net position, ending 545,748,142 $ 534,499,020 $ 21,656,166 $ 20,903,070 $ 567,404,308 $ 555,402,090 $
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-9-
Governmental Activities. The cost of all governmental activities this year was $71,738,086.
However, as shown in the Statement of Activities, the amount that taxpayers ultimately financed for these activities was $41,693,856, as costs of $13,832,811 were paid by those who directly benefited from the programs, or by other governments and organizations that subsidized certain programs with operating grants and contributions of $4,009,219, and capital grants and contributions of $12,202,200. The City’s total governmental program revenues were $30,044,230.
The City paid for the remaining “public benefit” portion of governmental activities with $52,942,978 in taxes and general revenue (some of which may only be used for certain programs) and with other revenues, such as interest. Overall, governmental activities increased the City’s net position by $11,249,122, or 2.1 percent, compared to the prior year increase of $7,990,602, or 1.5%.
Revenues – While variances between years exist for each revenue category, the overall net increase was $6,156,200, or 8.0 percent from prior year. Property tax revenues increased by $1,374,346, or 4.2 percent, due to continued growth in assessed valuation and residential development in the City. Investment Income increased by $2,319,553, or 130.2 percent, due to an increase in investment earnings as well as a fair market value adjustment to the City’s investments, which generated unrealized gains in Fiscal Year 2023/24. Capital Grants and Contributions increased by $6,427,103 or 111.3 percent, primarily due to increased OCTA grant funds for large infrastructure projects such as the Bastanchury Road Improvements and Yorba Linda Boulevard Widening Project the City recognized as revenue in the current year.
Expenses – The overall net increase in governmental expenses for the City from prior year was $2,897,680, or 4.2 percent. As previously discussed, this increase was largely due to costs incurred to begin implementation of the Eighth Amendment to the Affordable Housing Agreement with Evergreen Villas LP, to be funded by a $3.1 million CalOptima grant; 2) an increase in the administrative charge to other City funds; 3) increases to the Orange County Sheriff’s Department contract for law enforcement services; and 4) additional expense for insurance, electricity, repairs, and other maintenance, due to rising costs from inflationary pressures, supply-chain issues, and rate increases.
Business-Type Activities. Business-type activities increased the City’s net position by $753,096, or 3.5 percent. Charges for Services revenue increased by $1,017,600, or 7.3 percent, due to renewed golf participation since the COVID-19 pandemic, and the continued popularity of Derricks Grille, both at Black Gold and for Center Wedding and Events at the Yorba Linda Community Center. Operating costs increased by $679,024, or 7.4 percent, primarily due to ongoing inflation and wage increases required to attract and retain staff.
The chart on the following page presents the cost of each of the City’s six governmental fund functions (along with interest on long term debt), as well as their respective program revenues.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-10-
$‐
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
General
Government
Public Safety Community
Development
Parks and
Recreation
Library Public Works Interest on
Long‐Term
Debt
Expenses and ProgramRevenues ‐ Governmental Activities
2023 Expenses 2024 Expenses 2023 Program Revenues 2024 Program Revenues FINANCIAL ANALYSIS OF THE CITY’S MAJOR GOVERNMENTAL FUNDS Below is an analysis of the City’s major governmental fund activities for the year:
June 30, 2024 June 30, 2023
General Fund 44,233,621 $ 44,428,734 $
Affordable Housing Fund 52,916,935 52,088,149
Miscellaneous Grants Fund (4,751,402) (1,332,575)
Public Library Fund 7,184,980 6,040,079
Landscape Maintenance Assessment District Fund 9,194,574 8,095,521 Capital Improvements Fund - -
$ 109,319,908 108,778,708 $
Governmental Funds
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, total fund balance in the General Fund was $44,233,621 which is a decrease of $195,113 or 0.4% from prior year. This decrease in fund balance is due to the previously discussed planned use of reserves for infrastructure projects, which was partially offset by a market value adjustment for unrealized gains of $832,373, which will be reversed in Fiscal Year 2024/25. Unassigned fund balance of the General Fund was $2,142,419. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents 4.9% of the amount of General Fund operating expenditures, and is in addition to $23,253,569 operating reserve established by City Council resolution.
The Affordable Housing Fund Balance increased by $828,786, or 1.6 percent due to investment revenue earned during the fiscal year.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-11-
The Miscellaneous Grants Fund Balance decreased by $3,418,827, or 256.6 percent due to timing differences caused by grant expenditures incurred which were not reimbursed during the fiscal year.
The Public Library Fund Balance increased by $1,144,901, or 19.0 percent primarily due to continued growth in property tax revenues and savings, higher investment revenues partially offset by a market value adjustment to be reversed in the following fiscal year.
The Landscape Maintenance Assessment District Fund Balance increased by $1,099,053, or 13.6 percent, due to unspent transfers for capital projects which will be carried forward to the following fiscal year.
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the business-type activities portion of the government-wide financial statements, but in more detail.
Unrestricted net position of the Black Gold Golf Course Fund as of June 30, 2024, totaled negative $461,860, a reduction in the negative unrestricted net position in the amount of $1,082,846. This change is due to the previously discussed increase in revenues, primarily in the green fee and food & beverage operations categories, due to renewed golf participation since the COVID-19 pandemic, which was partially offset by increased operating costs at Black Gold Golf Club due to ongoing inflation and wage increases required to attract and retain staff.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-12-
GENERAL FUND BUDGETARY HIGHLIGHTS
The table below provides a comparison of the original adopted budget for the City’s General Fund versus the final budget and actual amounts expended during Fiscal Year 2023/24.
Original Final Actual Variance w/
Budget Budget Amounts Final Budget
Revenues
Taxes 37,554,075 $ 37,362,775 $ 37,421,910 $ 59,135 $
Other revenues 9,239,158 9,281,840 11,424,207 2,142,367 Total revenues 46,793,233 46,644,615 48,846,117 2,201,502 Expenditures
Administration 8,862,080 9,771,296 8,729,202 1,042,094
City Attorney 650,000 650,000 324,316 325,684
Finance 1,370,222 1,382,648 1,330,118 52,530
Public safety 14,638,543 14,373,543 14,134,730 238,813
Community development 3,765,294 4,358,130 4,041,043 317,087 Parks and recreation 9,730,150 9,911,838 9,249,343 662,495 Public works 6,176,058 6,250,513 5,352,685 897,828
Capital outlay 607,000 684,238 321,171 363,067
Debt service:
Principal retirement - - 127,915 (127,915)
Interest - - 6,490 (6,490)
Total expenditures 45,799,347 47,382,206 43,617,013 3,765,193 Excess of revenues over expenditures 993,886 (737,591) 5,229,104 5,966,695 Other financing sources
Transfers in 229,000 307,552 307,552 -
Transfers out (14,084,585) (14,341,210) (5,731,769) 8,609,441 Total other financing sources (13,855,585) (14,033,658) (5,424,217) 8,609,441 Net change in fund balances (12,861,699) (14,771,249) (195,113) 14,576,136 Fund balance at beginning of fiscal year 44,428,734 44,428,734 44,428,734 - Fund balance at end of fiscal year 31,567,035 $ 29,657,485 $ 44,233,621 $ 14,576,136 $
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-13-
General Fund Budgetary Highlights
Changes to Original Budget
Comparing the Fiscal Year 2023/24 General Fund Original (i.e. Adopted) Budget expenditures and transfers out amount of $59,883,932 to the final budgeted amount of $61,723,416 shows a net increase of $1,839,484, or 3.1 percent. This overall increase is primarily due to budget carryovers in the amount of $639,873 and appropriation to fund additional payments to CalPERS and the City’s Other Post-Employment Benefits Trust in the amounts of $322,444 and $417,000, respectively.
Final budgeted revenues and transfers in for the General Fund decreased $112,748 or 0.3 percent from the original (adopted) budget for the Fiscal Year ended June 30, 2024. The change from original to final budget occurred primarily as a result of adjustments made to budgeted sales tax, intergovernmental revenues, and transfers from other funds.
Variance with Final Budget
General Fund actual revenues were greater than the final budget by $2,201,502 for the Fiscal Year ended June 30, 2024. This budget variance is due in large part to actual investment returns exceeding budgeted amounts due to the high interest rate environment, as well as a market value adjustment to the City’s investments totaling $832,373 required by the Government Accounting Standards Board which will be reversed in Fiscal Year 2024/25.
General Fund expenditures and transfers out were $12,374,634 less than the final budget. The favorable budget variance is due in large part to the following:
Savings from various professional and general services contracts that were not fully expended during the fiscal year.
Special reserve transfers for various infrastructure projects totaling $8,609,441 which were not utilized and will be carried forward to Fiscal Year 2024/25.
CAPITAL ASSETS AND LONG-TERM LIABILITIES
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $490,026,682 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, infrastructure and construction in progress. The total increase in capital assets for the current fiscal year was $11,471,294. This increase was primarily due to infrastructure projects such as the Zone 5/6B Street Improvement Program, Yorba Linda Boulevard Widening, and Bastanchury Road Widening Projects, which were partially offset by depreciation expense.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-14-
The table below summaries the current capital assets held by the City as of June 30, 2024, as compared to the prior fiscal year.
City of Yorba Linda's Capital Assets (net of depreciation) Governmental Activities Business-Type Activities Total
2024 2023 2024 2023 2024 2023
Land 34,543,302 $ 34,543,302 $ 12,721,948 $ 12,721,948 $ 47,265,250 $ 47,265,250 $ Street pavement infrastructure 200,637,525 200,637,525 - - 200,637,525 200,637,525 Construction in progress 12,701,267 12,798,039 - - 12,701,267 12,798,039 Buildings and improvements 94,923,558 87,817,457 8,190,845 8,762,480 103,114,403 96,579,937 Machinery and equipment 3,024,228 2,796,749 1,765,577 1,771,429 4,789,805 4,568,178 Motor vehicles 1,170,327 1,021,150 - - 1,170,327 1,021,150 Other infrastructure 120,083,909 115,282,356 - - 120,083,909 115,282,356 Right-to-use subscriptions 264,196 402,953 - - 264,196 402,953 Totals 467,348,312 $ 455,299,531 $ 22,678,370 $ 23,255,857 $ 490,026,682 $ 478,555,388 $ The City of Yorba Linda elected to use the modified approach in reporting their streets and roads network. Under the modified approach, infrastructure assets that are part of a network or subsystem of a network are not required to be depreciated if certain requirements are met, which are disclosed in the accompanying Basic Financial Statements and Required Supplementary Information. The City Management, in consultation with the Public Works Department, has established the Orange County Transportation Authority’s (OCTA) standard for receiving competitive grant funding of a PCI of 75 as the condition level against which the City’s current PCI should be measured.
Actual Assessed Minimum Condition
Condition Level Level
Overall Pavement Network 78 75
Under the modified approach, GASB Statement No. 34 requires that condition assessments be performed every three years. Last completed in May 2024, the City traditionally performs an assessment every two years. Additional information on the City’s capital assets can be found in note 5 to the basic financial statements.
Long-term Liabilities. At the end of the current fiscal year, the City’s total long-term debt totaled $59,598,726. The following table summarizes the current long-term liabilities of the City as of June 30, 2024, as compared to the prior fiscal year.
City of Yorba Linda's Outstanding Debt
Governmental Activities Business-Type Activities Total
2024 2023 2024 2023 2024 2023
Net pension liability 25,884,242 $ 25,065,294 $ - $ - $ 25,884,242 $ 25,065,294 $ Other post-employment benefits 17,167,952 18,033,269 - - 17,167,952 18,033,269 Lease Revenue Financings1 13,485,326 12,821,065 - - 12,821,065 13,485,326 Subscription liability 225,326 353,241 - - 225,326 353,241 Leases - - 633,679 881,416 633,679 881,416
Claims and judgments 1,584,610 749,342 - - 1,584,610 749,342 Compensated absences 1,281,852 1,578,042 - - 1,281,852 1,578,042 Total Long-Term Liabilities 58,965,047 $ 59,264,514 $ 633,679 $ 881,416 $ 59,598,726 $ 60,145,930 $ 1 Amount includes an unamortized bond premium
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-15-
At the end of Fiscal Year 2023/24, the City’s long-term liabilities were primarily comprised of a net pension liability of $25,884,242 and a net OPEB obligation related to medical insurance provided to retirees of $17,167,952. The pension liability increased primarily due to actual economic and demographic plan experience differing from actuarial assumptions, as well as differences between projected and actual earnings on Pension Plan investments used to determine the City’s net pension liability. In the case of the net OPEB liability, decrease was largely the result of additional deposits to the City’s OPEB trust. A second tier of OPEB benefits and the deposits to the OPEB trust were implemented by the City Council in 2017 to reduce the City’s future exposure to OPEB costs and begin to prefund the net OPEB obligation through trust fund contributions.
Contributions have been made in each of the prior eight fiscal years, with an additional contribution of $200,000 approved by City Council for the Fiscal Year 2024/25. While this change is expected to decrease the City’s net pension liability substantially over time, changes to the CalPERS actuarial assumptions that have, among other recent changes, lowered the projection of future investment earnings, have mitigated the degree to which this impact has been realized to date.
Historically, the City has had no outstanding General Fund bonds or other external debt. In 2019, the City issued revenue bonds to fund a portion of the construction costs for the City’s new Public Library facility. However, the bonds will be repaid from the restricted property tax revenues of the Public Library Fund and not the General Fund. The Successor Agency to the City’s former Redevelopment Agency also has tax allocation bonds outstanding, but these debts are not reported in the City’s government-wide financial statements because they are contained in a private purpose trust fund.
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 balance of this lease at June 30, 2024 was $633,679.
The City’s compensated absences liability relates to accrued but as yet unutilized vacation and sick leave balances of employees, and the claims and judgments liability relates to incurred but as yet unpaid liability and workers’ compensation claims. The decrease of $296,190 in the compensated absences liability is the result of routine changes to accrued leave balances. The claims and judgments liability increased $835,268 due to increased reserve levels for open general liability claims. The majority of the workers compensation liability is for anticipated future pay-as-you-go payments to the City of Brea for expenses from claims incurred the period during which the City of Brea provided Police Services to the City, which ended in 2012 when the City contracted with the County of Orange for these services.
More detail on the City’s long-term liabilities can be found in Notes 8, 10, and 11 to the financial statements.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2024
-16-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City has experienced strong growth in property tax revenue in recent years. The growth in these revenue source is expected to continue in the year ahead, albeit at a slower pace than was seen during the post-COVID recovery. Consistent with past practice, the City will continue to budget conservatively and utilize any new revenues prudently to address long-term liabilities, unfunded needs, and targeted increases in service levels and program-related spending. The 2023-25 biennial City budget is available through the City’s Financial Department or online at https://www.yorbalindaca.gov/371/Financial-Documents.
While the City is currently in sound financial shape, long-term liabilities and unfunded needs continue to be a focus of the City Council. During the prior Ten-Year Budget process the City Council endorsed a strategy to begin to address the City’s unfunded pension and OPEB liabilities as well as other unfunded needs such as full funding for the rehabilitation of existing city infrastructure and facilities. The City is now making contributions to special reserves to fund required rehabilitation of existing city infrastructure and facilities, proactively reducing the City’s unfunded pension liability through elective contributions to CalPERS, and making additional contributions to an OPEB trust with CalPERS to offset its unfunded OPEB liability. With these enhancements to the City’s already conservative and sound financial management, the City will remain in good financial condition throughout the fiscal year and in the future, with one of the strongest General Fund budget reserves in Orange County.
REQUESTING ADDITIONAL FINANCIAL INFORMATION
This financial report is designed to provide the City of Yorba Linda’s citizens, customers, and creditors with a general overview of the City’s finances and to illustrate the City’s accountability for the money that it receives. If you have questions about this report or need additional financial information, please contact the City’s Finance Department at 4845 Casa Loma Avenue, Yorba Linda, California 92886 or at (714) 961- 7100.
BASIC FINANCIAL STATEMENTS
City of Yorba Linda
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -17-
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:
Pooled cash and investments 74,923,248 $ 2,962,493 $ 77,885,741 $ Receivables:
Accounts 3,613 1,274,085 1,277,698
Taxes - 382,690 382,690
Notes and loans 47,910,699 - 47,910,699
Accrued interest 373,076 - 373,076
Leases 1,806,886 1,806,886
Internal balances 1,060,000 (1,060,000) -
Prepaid costs - 100,329 100,329
Due from other governments 8,541,429 - 8,541,429
Inventories 253,707 - 253,707
Land held for resale 2,600,000 - 2,600,000
Restricted Asset:
Cash and investments with fiscal agents 1,120 - 1,120
Capital assets, not being depreciated 247,882,094 12,721,948 260,604,042 Capital assets, net of accumulated depreciation 219,466,218 9,956,422 229,422,640 Total assets 24,838,183 606,321,874 631,160,057
Deferred outflows of resources:
Pension related - 8,095,116 8,095,116
OPEB related - 3,586,886 3,586,886
Total deferred outflows of resources - 11,682,002 11,682,002 Liabilities:
Accounts payable 5,522,303 10,176 5,532,479
Accrued liabilities 518,178 2,239,695 2,757,873
Accrued interest payable 82,449 - 82,449
Unearned revenue 288,467 - 288,467
Deposits payable 10,000 - 10,000
Noncurrent liabilities:
Due within one year
Long term liabilities 761,553 250,992 1,012,545
Claims and judgements 925,892 - 925,892
Compensated absences 857,508 - 857,508
Due in more than one year
Long term liabilities 12,284,838 382,687 12,667,525
Claims and judgements 658,718 - 658,718
Compensated absences 424,344 - 424,344
Net pension liability 25,884,242 - 25,884,242
Net OPEB liability 17,167,952 - 17,167,952
Total liabilities 3,182,017 65,087,977 68,269,994
Deferred inflows of resources:
Leases - 1,687,749 1,687,749
Pension related - 213,964 213,964
OPEB related - 5,266,044 5,266,044
Total deferred inflows of resources - 7,167,757 7,167,757 Net position:
Net investment in capital assets 454,301,921 22,118,026 476,419,947 Restricted for:
General government 335,741 - 335,741
Parks and recreation 1,427,620 - 1,427,620
Public works 21,246,629 - 21,246,629
Library - 7,166,935 7,166,935
Low and moderate housing 53,002,589 - 53,002,589
Unrestricted (deficit) 8,266,707 (461,860) 7,804,847
Total net position $ 21,656,166 545,748,142 $ 567,404,308 $
City of Yorba Linda
Statement of Activities For the Fiscal Year Ended June 30, 2024 The accompanying notes are an integral part of these financial statements. -18-
Net (Expense) Revenues and
Program Revenues Changes in Net Position
Operating Capital
Charges for Contributions Contributions Governmental Business-Type Functions/programs Expenses Services and Grants and Grants Activities Activities Total Governmental activities:
General government 13,665,478 $ 8,621,252 $ 3,432,033 $ 429,556 $ (1,182,637) $ - $ (1,182,637) $ Public safety 14,209,525 157,148 193,746 3,140,791 (10,717,840) - (10,717,840) Community development 4,645,214 1,819,095 266,614 2,421,889 (137,616) - (137,616) Parks and recreation 16,229,130 2,660,508 103,389 559,415 (12,905,818) - (12,905,818) Library 6,321,929 278,722 13,437 - (6,029,770) - (6,029,770) Public works 16,128,067 296,086 - 5,650,549 (10,181,432) - (10,181,432) Interest on long-term debt 538,743 - - - (538,743) - (538,743) Total governmental activities 13,832,811 71,738,086 4,009,219 12,202,200 (41,693,856) - (41,693,856) Business-type activities:
Black Gold Golf Course 9,828,881 10,530,453 - - - 701,572 701,572 Total business-type activities 10,530,453 9,828,881 - - - 701,572 701,572 Total $ 24,363,264 81,566,967 $ 4,009,219 $ 12,202,200 $ (41,693,856) 701,572 (40,992,284) General revenues:
Taxes:
Property taxes, levied for general purpose 34,245,240 - 34,245,240Sales taxes 8,396,106 - 8,396,106Franchise taxes 2,547,619 - 2,547,619Transient occupancy taxes 554,637 - 554,637 Business licenses taxes 441,623 - 441,623Other taxes 595,756 - 595,756 Motor vehicle in lieu - unrestricted 97,804 - 97,804
Investment income 4,100,541 77,460 4,178,001
Gain on sale of capital assets 315,343 - 315,343
Other 1,632,854 (10,481) 1,622,373
Transfers (15,455) 15,455 -
Total general revenues 51,524 52,942,978 52,994,502
Change in net position 11,249,122 753,096 12,002,218
Net position at beginning of fiscal year 534,499,020 20,903,070 555,402,090Net position at end of fiscal year $ 21,656,166 545,748,142 $ 567,404,308 $
City of Yorba Linda
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -19-
Affordable Miscellaneous
General Housing Grants
Assets:
Pooled cash and investments 38,536,972 $ 4,788,889 $ - $ Receivables:
Accounts 1,017,665 174,575 -
Taxes 221,194 - -
Notes and loans - 47,910,699 -
Accrued interest 167,015 15,640 -
Leases 1,806,886 - -
Prepaid costs 82,284 - -
Due from other governments 1,841,301 - 5,939,953
Due from other funds 5,479,371 - -
Advances to other funds - - -
Land held for resale - 2,600,000 -
Restricted assets:
Cash and investments with fiscal agents - - -
Total assets $ 55,489,803 49,152,688 $ 5,939,953 $
Liabilities, deferred inflows of resources,
and fund balances:
Liabilities:
Accounts payable 2,364,709 $ 979 $ - $
Accrued liabilities 437,053 - -
Due to other funds - - 4,835,105
Total liabilities 979 2,801,762 4,835,105
Deferred inflows of resources:
Unavailable revenues 429,556 2,571,889 5,856,250
Leases 1,687,749 - -
Total deferred inflows of resources 2,571,889 2,117,305 5,856,250 Fund balances:
Nonspendable:
Prepaid costs 82,284 - -
Restricted for:
General government - - -
Parks and recreation - - -
Public works - - -
Library - - -
Low and moderate housing - 52,916,935 -
Committed:
Operating reserves 23,253,569 - -
Special reserves 3,864,790 - -
Assigned to:
Year-end market value 821,600 - -
Unfunded liabilities 583,800 - -
Budget carryovers 12,856,499 - -
Parks and recreation 628,660 - -
Unassigned (deficit) - 2,142,419 (4,751,402)
Total fund balances (deficit) 52,916,935 44,233,621 (4,751,402) Total liabilities, deferred inflows of
resources, and fund balances $ 55,489,803 49,152,688 $ 5,939,953 $ Special Revenue Funds
City of Yorba Linda
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Capital
Projects Fund
Landscape Total
Maintenance Nonmajor Total
Public Assessment Capital Governmental Governmental
Library District Improvements Funds Funds
$ 9,779,640 7,171,638 $ 2,107,731 $ 12,538,378 $ 74,923,248 $ 15,100 3,880 - 62,865 1,274,085
77,617 83,879 - - 382,690
- - - - 47,910,699
35,213 69,246 - 85,962 373,076
- - - - 1,806,886
- 18,045 - - 100,329
- - - 760,175 8,541,429
- - - - 5,479,371
- - - 1,060,000 1,060,000
- - - - 2,600,000
1,120 - - - 1,120
$ 9,907,570 7,347,808 $ 2,107,731 $ 14,507,380 $ 144,452,933 $ $ 697,686 96,857 $ 2,107,731 $ 254,341 $ 5,522,303 $
65,971 15,154 - - 518,178
- - - 644,266 5,479,371
712,840 162,828 2,107,731 898,607 11,519,852
156 - - - 8,857,851
- - - - 1,687,749
156 - - - 10,545,600
- 18,045 - - 100,329
- - - 335,741 335,741
- - - 1,427,620 1,427,620
9,194,574 - - 12,052,055 21,246,629
- 7,166,935 - - 7,166,935
- - - 85,654 53,002,589
- - - - 23,253,569
- - - - 3,864,790
- - - - 821,600
- - - - 583,800
- - - - 12,856,499
- - - - 628,660
- - - (292,297) (2,901,280)
9,194,574 7,184,980 - 13,608,773 122,387,481
$ 9,907,570 7,347,808 $ 2,107,731 $ 14,507,380 $ 144,452,933 $ Special Revenue Funds
City of Yorba Linda
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Fund balances of governmental funds $ 122,387,481
467,348,312
Claims and judgments (1,584,610) $
Compensated absences (1,281,852)
Long-term debt (13,046,391)
Accrued interest on long-term debt (82,449)
Net OPEB liability (17,167, 952)
Net pension liability (25,884,242)
(59,047,496)
8,857,851
Pension related deferred outflow of resources 8,095,116 OPEB related deferred outflows of resources 3,586,886
Pension related deferred inflows of resources (213,964) OPEB related deferred inflows of resources (5,266,044)
Net position of governmental activities $ 545,748,142
Revenues that do not meet the "availability" criteria for revenue recognition are deferred inflows of resources in the governmental funds.
Deferred outflows and inflows of resources related to pension and OPEB are not reported in the government funds:
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of accumulated depreciation used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.
Noncurrent liabilities, as listed below, are not due and payable in the current period and therefore are not reported in the governmental funds:
City of Yorba Linda
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -22-
Affordable Miscellaneous
General Housing Grants
Revenues:
Taxes 37,421,910 $ - $ - $
Licenses and permits 1,715,183 - -
Intergovernmental 747,230 528,111 483,043
Charges for services 5,332,330 - -
Investment income 1,632,083 832,183 -
Fines and forfeitures 50,842 - -
Developer participation - - -
Gain on sale of City property 276,193 - -
Miscellaneous 1,670,346 - -
Total revenues 1,360,294 48,846,117 483,043
Expenditures:
Current:
General government 10,383,636 - -
Public safety 14,134,730 - -
Community development 4,041,043 531,508 -
Parks and recreation 9,249,343 - -
Library - - -
Public works 5,352,685 - -
Capital outlay 321,171 - -
Debt service:
Principal retirement 127,915 - -
Interest 6,490 - -
Total expenditures 531,508 43,617,013 -
Excess (deficiency) of revenues
over (under) expenditures 5,229,104 828,786 483,043
Other financing sources (uses):
Transfers in 307,552 - 163,308
Transfers out (5,731,769) - (4,065,178)
Total other financing sources (uses) - (5,424,217) (3,901,870) Net change in fund balances (195,113) 828,786 (3,418,827) Fund balances (deficit) beginning of fiscal year 44,428,734 52,088,149 (1,332,575) Fund balances (deficit) end of fiscal year $ 52,916,935 44,233,621 $ (4,751,402) $ Special Revenue Funds
City of Yorba Linda
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Capital
Projects Fund
Landscape Total
Maintenance Nonmajor Total
Public Assessment Capital Governmental Governmental
Library District Improvements Funds Funds
$ 9,711,624 8,140,082 $ - $ 128,616 $ 55,402,232 $
- 18,500 - - 1,733,683
13,077 - - 5,613,950 7,385,411
218,446 - - - 5,550,776
290,013 368,508 - 977,756 4,100,543
41,776 - - 106,306 198,924
- - - 573,332 573,332
- - - 39,150 315,343
580 48,347 - - 1,719,273
10,128,479 8,722,474 - 7,439,110 76,979,517
- - - 518,838 10,902,474
- - - - 14,134,730
- - - 116,614 4,689,165
- - - - 9,249,343
- 6,371,104 - - 6,371,104
9,489,204 - - - 14,841,889
- 63,331 21,899,988 303,223 22,587,713
- 600,000 - - 727,915
- 543,138 - - 549,628
9,489,204 7,577,573 21,899,988 938,675 84,053,961
639,275 1,144,901 (21,899,988) 6,500,435 (7,074,444)
1,136,893 - 21,899,988 230,831 23,738,572
(677,115) - - (13,249,055) (23,723,117)
459,778 - 21,899,988 (13,018,224) 15,455
1,099,053 1,144,901 - (6,517,789) (7,058,989)
8,095,521 6,040,079 - 20,126,562 129,446,470
$ 9,194,574 7,184,980 $ - $ 13,608,773 $ 122,387,481 $
Special Revenue Funds
City of Yorba Linda
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Net changes in fund balances - total governmental funds $ (7,058,989) Capital outlay 19,035,816 $
Depreciation (6,987,035) 12,048,781
Changes in accrued interest on long-term debt 10,885
Changes in claims and judgments obligation (835,268)
Changes in bond premium 64,261
Changes in compensated absence benefits, net 296,190 (463,932) Principal repayments 727,915
5,992,236
(970,701)
973,812
Change in net position of governmental activities $ 11,249,122 Governmental funds recognize OPEB costs when employer contributions are made; however, in the statement of activities, OPEB costs are recognized on the accrual basis. This is the difference between accrual-basis OPEB costs and actual employer contributions.
Governmental funds recognize pension costs when employer contributions are made; however, in the statement of activities, pension costs are recognized on the accrual basis. This is the difference between accrual-basis pension costs and actual employer contributions.
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period.
Some expenses reported in the statement of activities do not require the use of current resources and therefore are not reported as expenditures in governmental funds. The following adjustments combine the net change of these liabilities:
Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. The issuance of long-term liabilities provides current financial resources to the governmental funds, but the issuance increases long-term liabilities in the statement of net position.
Revenues reported as unavailable revenue in the governmental funds. Amounts are not recorded as revenue under the modified accrual basis of accounting. This is the net change in unavailable revenue from the prior fiscal year.
City of Yorba Linda
Statement of Fund Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -25-
Business-Type
Activities -
Enterprise Fund
Black
Gold Golf
Course
Assets:
Current:
Pooled cash and investments 2,962,493 $
Receivables 3,613
Inventories 253,707
Total current assets 3,219,813
Noncurrent:
Capital assets not being depreciated 12,721,948
Capital assets - net of accumulated depreciation 9,956,422 Total capital assets, net 22,678,370
Total noncurrent assets 22,678,370
Total assets 25,898,183
Liabilities:
Current:
Accounts payable 10,176
Accrued liabilities 2,239,695
Unearned revenues 288,467
Deposits payable 10,000
Advances from other funds 1,060,000
Loan payable 250,992
Total current liabilities 3,859,330
Noncurrent:
Loan payable 382,687
Total noncurrent liabilities 382,687
Total liabilities 4,242,017
Net position:
Net investment in capital assets 22,118,026
Unrestricted (461,860)
Total net position $ 21,656,166
City of Yorba Linda
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -26-
Business-Type
Activities -
Enterprise Fund
Black
Gold Golf
Course
Operating revenues
Charges for services 10,530,453 $
Total operating revenues 10,530,453
Operating expenses:
Administration and general 7,698,185
Cost of sales and services 1,231,396
Depreciation expense 899,300
Total operating expenses 9,828,881
Operating income 701,572
Nonoperating revenue:
Investment income 77,460
Interest expense (10,481)
Total non-operating revenue 66,979
Other financing sources (uses):
Transfers out (15,455)
Total other financing sources (uses) (15,455)
Change in net position 753,096
Net position at beginning of fiscal year 20,903,070
Net position at end of fiscal year $ 21,656,166
City of Yorba Linda
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -27-
Business-Type
Activities -
Enterprise Fund
Black
Gold Golf
Course
Cash flows from operating activities:
Cash received from customers and users 10,497,521 $
Cash paid to suppliers for goods and services (1,229,093) Cash paid to employees for services (7,079,200)
Net cash provided by operating activities 2,189,228
Cash flows from noncapital activities:
Cash paid to other funds for advances (240,000)
Net cash used by noncapital activities (240,000)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (321,813) Interest paid (10,481)
Loan payment (247,737)
Interest received on investments 77,460
Transfer out for capital improvements (15,455)
Net cash used by capital and related financing activities (518,026) Net increase in cash and cash equivalents 1,431,202
Cash and cash equivalents at beginning of fiscal year 1,531,291 Cash and cash equivalents at end of fiscal year $ 2,962,493 Reconciliation of operating income to net cash
provided by operating activities
Operating income 701,572 $
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 899,300
Decrease (increase) in receivables (3,613)
Decrease (increase) in inventories (5,434)
Increase (decrease) in accounts payable 7,737
Increase (decrease) in accrued liabilities 618,985
Increase (decrease) in unearned revenues (29,319)
Total adjustments 1,487,656
Net cash provided by operating activities $ 2,189,228
City of Yorba Linda
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -28-
PrivateCustodial Purpose Trust
Fund Fund
Special Successor
Deposits Agency of the
Funds Former RDA
Assets:
Pooled cash and investments 964,333 $ 6,843,350 $
Receivables:
Accounts receivable 224 3,391
Accrued interest - 15,974
Restricted assets:
Cash and investments with fiscal agents - 4,101
Total assets 6,866,816 964,557
Liabilities:
Account payable 72,428 -
Interest payable - 154,413
Deposits payable 892,129 -
Long-term liabilities:
Due in one year - 807,999
Due in more than one year - 33,666,470
Total liabilities 34,628,882 964,557
Net position (deficit):
Held for Successor Agency - (27,762,066)
Total net position (deficit) $ (27,762,066) - $
City of Yorba Linda
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -29-
PrivateCustodial Purpose Trust
Fund Fund
Special Successor
Deposits Agency of the
Funds Former RDA
Additions:
Taxes - $ 4,847,120 $
Interest and change in fair value of investments - 190,590 Total additions 5,037,710 -
Deductions:
Administrative expenses - 8,824
Bond interest - 1,006,054
Total deductions 1,014,878 -
Change in net position 4,022,832 -
Net position (deficit) at beginning of fiscal year - (31,784,898) Net position (deficit) at end of fiscal year $ (27,762,066) - $
THIS PAGE INTENTIONALLY LEFT BLANK
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-30-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of Entity
The City of Yorba Linda (City) was incorporated in November 1967 under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public works, public safety, community development, parks and recreation, library, and general administrative services.
As required by accounting principles generally accepted in the United States of America (U.S.
GAAP), these financial statements present the City of Yorba Linda (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from the City. However, the City of Yorba Linda's elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of 1) the City, 2) organizations for which the City is financially accountable, and 3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete.
An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit's balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's or the component unit provides services almost entirely to the City.
Blended Component Units
Yorba Linda Housing Authority
The Yorba Linda Housing Authority (the Housing Authority) was established on March 1, 2011, through the adoption of Resolution No. 2011-5039, and its governing body is the City Council of the City. The Housing Authority did not have any financial activity during the year ended June 30, 2024. The Housing Authority does not have separately issued financial statements.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-31-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) A) Description of Entity (continued)
Yorba Linda Municipal Financing Authority
The Yorba Linda Municipal Financing Authority (the MFA) was established on April 17, 2018, pursuant to a joint exercise of powers agreement between the City and the Yorba Linda Housing Authority, and its governing body is the City Council of the City.
The purpose of the MFA is to enable the City and the Authority to finance public capital improvements. Debt service for debt issued by the MFA is to be repaid entirely with resources of the City. The MFA's transactions are included in the Public Library Fund.
The MFA does not have separately issued financial statements.
Fiduciary Component Unit
Successor Agency to the Yorba Linda Redevelopment Agency (Successor Agency) The Successor Agency is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency pursuant to City Council actions taken on January 3, 2012. The activity of the Successor Agency is overseen by Successor Agency Board comprised of individuals appointed by the City Council as Successor Agency of the former Redevelopment Agency. The nature and significance of the relationship between the City and the Successor Agency is such that it would be misleading to exclude the Successor Agency from the City’s financial statements.
The Successor Agency is presented herein in the City’s fiduciary funds as a privatepurpose trust fund. The Successor Agency does not have separately issued financial statements.
B) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities that rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include:
1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-32-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B) Government-Wide and Fund Financial Statements (continued) Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under the accrual basis of accounting. However, debt service expenditures, pension costs, OPEB costs, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
The City’s fiduciary fund financial statements report one custodial fund and one private purpose trust fund. The City’s fiduciary funds are custodial in nature. The City’s custodial fund is accounted for on an accrual basis of accounting. Private purpose trust fund funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Property taxes, franchise taxes, transient occupancy taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-33-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund.
The Affordable Housing Fund accounts for the assets and liabilities of the City’s affordable housing programs, including those of the former Yorba Linda Redevelopment Agency low and moderate income housing fund. The Miscellaneous Grants Fund accounts for miscellaneous grants and developer contributions related to capital improvement projects being constructed by the City. The Public Library Fund accounts for the property taxes restricted by enabling legislation and other revenues and expenditures relating to the operations of the public library. On September 4, 1984, the Yorba Linda City Council voted to approve the merger of the Yorba Linda Library District into the City of Yorba Linda. At that time, the City Council agreed to earmark all future revenues received and funds transferred from the Library District for Library purposes, consistent with the enabling legislation that established the Library District.
The Landscape Maintenance Assessment District Fund accounts for the revenues and expenditures associated with the maintenance of City-owned streetlights and traffic signals, as well as landscaped areas within the City’s various arterial and local landscaping districts. Benefiting property owners are assessed their proportionate share of the costs in excess of ad valorem property tax revenues received by certain of the districts.
The Capital Improvements Fund accounts for expenditures for construction of various capital improvements projects throughout the City.
The City reports the following major proprietary funds:
The Black Gold Golf Course Enterprise Fund accounts for all activities related to the operations of the Black Gold Golf Club.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-34-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Additionally, the City reports the following fiduciary fund types:
One custodial fund used to report resources held by the City in a purely custodial capacity that involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. One private-purpose trust fund used to account for the assets and liabilities of the former Yorba Linda Redevelopment Agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated.
As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. Exceptions to this general rule are charges between the government's proprietary funds function and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the Enterprise Funds are charges to customers for sales and services.
Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-35-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance
Deposits and Investments
The City values its cash and investments in accordance with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, and GASB Statement No. 72, Fair Value Measurement and Application, which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value. The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach or the income approach. Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value. All highly liquid investments (including restricted assets) with a maturity of 90 days or less when purchased are considered cash equivalents. Cash and investments held on behalf of proprietary funds by the City Treasurer are considered highly liquid and are classified as cash equivalents for the purpose of presentation in the statement of cash flows.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due, and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (within 60 days) to be used to pay liabilities of the current period.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-36-
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)
Inventories, Prepaid Items, and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventory costs are recorded as an expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Land purchased for resale is valued at acquisition costs or net realizable value, if lower.
Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for future capital improvements by enabling legislation.
Capital Assets
Capital assets that include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $2,000, dependent on asset class type and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement should be recorded at estimated acquisition value at the date of donation.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-37-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (continued)
Capital Assets (continued)
U.S. GAAP requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. Infrastructure assets are defined as “…long lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets…” Infrastructure assets are normally stationary in nature and are of value only to the government entity. They are basic physical assets that allow the government entity to function. Examples include streets, bridges and storm drains. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, etc. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.
The City has elected the Modified Approach for reporting of the Pavement Subsystem infrastructure assets and as a result, no depreciation is recorded for that system under the following requirements:
The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory, (2) performing condition assessments and summarizing the results using a measurement scale, and (3) estimating the annual amount to maintain and preserve at an established and disclosed condition level. The City documents that eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition level.
For all other capital assets, the City has elected to depreciate these assets using the straight-line method over the following estimated useful lives:
Assets Years
Building and building improvements 7-50
Improvements other than building 7-50
Machinery and equipment 5-7
Furniture, fixtures computers, and software 1-10
Vehicles (including motorcycles) 3-10
Infrastructure 5-100
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-38-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Fund Balance (continued)
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The City has three types of items that qualify for reporting in these categories. The first item, unavailable revenue, is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenues from sources such as: property taxes, grant revenue, and long-term loan receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item, deferred outflows and deferred inflows of resources related to pension and OPEB, is reported only in the statement of net position. See Notes 10 and 11 to the basic financial statements for more information on deferred outflows and deferred inflows of resources related to pension and OPEB, respectively, on the statement of net position. The third item, deferred outflows and deferred inflows of resources related to leases, is reported only in the governmental funds balance sheet. The variable payments are recorded as an inflow of resources in the period the payment is received. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.
Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-39-
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 Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance.
Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
Compensated Absences
It is the government's policy to permit employees to accumulate earned but unused vacation and sick leave benefits. City employees have an option to convert 100% of their unused sick leave benefits to California Public Employee’s Retirement System (CalPERS) service credit upon retirement. Additionally, employees hired prior to 2001 have the option to convert a portion of their sick leave to cash compensation upon retirement based on years of service. This benefit is not available to employees hired since 2001. All city employees other than executive management receive from 10 to 20 days of vacation leave each year depending on the employee’s length of service.
As of October 1, 2018, executive management employees receive management leave of between 22.5 and 27.5 days each year in lieu of receiving separate vacation and sick leave. All vacation, sick, and management leave is accrued when incurred at the current pay-rate of the employee in the government-wide, proprietary, and fiduciary fund financial statements.
Long-Term Obligations
In the government-wide financial statements, and the proprietary fund and fiduciary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, proprietary fund type or fiduciary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-40-
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)
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Reported results pertain to assets, deferred outflows of resources, liabilities, and deferred inflows of resources information within the following defined time frames:
Valuation Date (VD) – June 30, 2022
Measurement Date (MD) – June 30, 2023
Measurement Period (MP) – July 1, 2022 to June 30, 2023 OPEB
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Reported results pertain to assets, deferred outflows of resources, liabilities, and deferred inflows of resources information within the following defined time frames:
Valuation Date (VD) – June 30, 2023
Measurement Date (MD) – June 30, 2023
Measurement Period (MP) – July 1, 2022 to June 30, 2023 Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on a complex formula.
Accordingly, the City recognizes revenue only as those taxes which are received within 60 days after year end. The property tax calendar is as follows:
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-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, 2024
-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, 2024
-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. 100, Accounting Changes and Error Corrections. The primary objective of GASB 100 is to improve the accounting and financial reporting requirements for accounting changes and error corrections, aiming to provide clearer, more reliable, and consistent information for users of governmental financial statements to make informed decisions and assess accountability.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-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. 102 Certain Risk Disclosures The provisions of this Statement are effective for fiscal year
ending June 30, 2025.
GASB Statement No. 103 Financial Reporting Model
Improvements
The provisions of this Statement
are effective for fiscal year
ending June 15, 2025.
GASB Statement No. 104 Disclosure of Certain Capital
Assets
The provisions of this Statement
are effective for fiscal year
ending June 15, 2025.
2) STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balance / Net Position
The Miscellaneous Grants Fund had a deficit fund balance of $4,751,402, as of June 30, 2024.
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 $292,297, as of June 30, 2024, due to revenues not meeting the “availability” criteria for revenue recognition. The deficit will be funded through the receipt of future Permanent Local Housing Allocation (PHLA) Program Funds.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-45-
3) CASH AND INVESTMENTS
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:
Statement of net position:
Pooled cash and investments 77,885,741 $
Cash and investments with fiscal agents 1,120
Statement of fiduciary net position:
Pooled cash and investments 7,807,683
Cash and Investments with Fiscal Agents 4,101
Total Cash and Investments 85,698,645 $
Cash and investments as of June 30, 2024, consist of the following:
Petty cash 12,470 $
Sum of deposits with financial institutions 6,211,985
Investments 79,474,191
Total 85,698,646 $
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 statechartered 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, 2024
-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 30% 5%
Asset-Backed Securities 5 years 20% 5%
Local Agency Investment Fund (LAIF) N/A N/A $75m
California Asset Management Program (CAMP) N/A N/A N/A
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-47-
3) CASH AND INVESTMENTS (continued)
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
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, 2024, 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 - $ 2,021,324 $ 7,923,439 $ 9,944,763 $ Negotiable Certificates of Deposit - 1,154,070 707,344 1,861,414 Asset-Backed Securities - 255,551 446,665 702,216
Bank Note - - 1,704,428 1,704,428
U.S Treasury Issues 439,936 6,320,055 15,448,059 22,208,050 U.S Government Agency Securities:
Federal Agency Bond/Note - 2,725,741 353,136 3,078,877
Federal Agency Commercial Mortgage-Backed
Security - 270,173 7,492,654 7,762,827
Municipal Bond - 1,196,273 109,710 1,305,983
Supra-National Agency Bond / Note - - 233,377 233,377
Local Agency Investment Fund (LAIF) 3,879,732 - - 3,879,732 California Asset Management Program (CAMP) 26,792,524 - - 26,792,524 $ 13,943,187 31,112,192 $ 34,418,812 $ 79,474,191 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-48-
3) CASH AND INVESTMENTS (continued)
Fair Value Measurements
The Pool categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
Level 1: Investments reflect prices quoted in active markets; Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and,
Level 3: Investments reflect prices based upon unobservable sources.
Investments in money market mutual funds, LAIF, and local government investment pools are priced using amortized cost which approximates fair value, with a net asset value of $1.00 (in absolute dollar amounts) per share, and not subject to the fair value hierarchy.
The City's Level 2 investments are valued based on the closing bid prices as of the last business day of the month as supplied by Refinitiv or Bloomberg. For certain short-term investments or where prices are not available from generally recognized sources the securities are priced using a yield-based matrix system to arrive at an estimated market value. Prices that fall between data points are interpolated.
The City had the following recurring fair value measurements as of June 30, 2024:
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 9,944,763 $ - $ 9,944,763 $ - $ Negotiable Certificates of Deposit 1,861,414 - 1,861,414 - Asset-Backed Securities 702,216 - 702,216 -
Bank Note 1,704,428 - 1,704,428 -
U.S Treasury Issues 22,208,050 - 22,208,050 -
Federal Agency Bond/Note 3,078,877 - 3,078,877 -
Federal Agency Commercial Mortgage-Backed
Security 7,762,827 - 7,762,827 -
Municipal Bond 1,305,983 - 1,305,983 -
Supra-National Agency Bond / Note 233,377 - 233,377 -
Total Investments at Fair Value 48,801,935 - $ 48,801,935 $ - $ Investments not subject to fair value hierarchy:
Local Agency Investment Fund (LAIF) 3,879,732
California Asset Management Program (CAMP) 26,792,524
Total Investments 79,474,191 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-49-
3) CASH AND INVESTMENTS (continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization (NRSRO). The City’s investment policy does not limit investments in Federal Agency Securities to ratings issued by nationally recognized statistical rating organizations. Presented below is the minimum rating required by (where applicable) the CGC, the City’s investment policy, or debt agreements, and the actual rating, by Standard and Poor’s, as of fiscal year end for each investment type. For the Medium-Term Corporate Notes shown with a rating below the minimum level required of A-, a NRSRO other than Standard and Poor’s currently maintains an A or better rating on these securities. Additionally, 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 9,944,761 $ A- - $ 1,288,478 $ 8,430,995 $ 225,288 $ - $ Negotiable Certificates of Deposit 1,861,413 A- - - 1,861,413 - - Asset-Backed Securities 702,217 A- 625,722 26,757 - - 49,738 Bank Note 1,704,428 N/A - - 1,704,428 - -
U.S. Treasury Issues 22,208,051 N/A - 21,768,115 439,936 - - U.S. Government Agency Securities:
Federal Agency Bond/Note 3,078,877 N/A - 3,078,877 - - - Federal Agency Commercial Mortgage-Backed
Security 7,762,827 N/A - 7,762,827 - - -
Municipal Bond 1,305,984 N/A 250,513 786,329 - - 269,142 Supra-National Agency Bond / Note 233,377 N/A 233,377 - - - - Local Agency Investment Funds (LAIF) 3,879,732 N/A - - - - 3,879,732 California Asset Management Program (CAMP) 26,792,524 N/A - - - - 26,792,524 Total 79,474,191 $ 1,109,612 $ 34,711,383 $ 12,436,772 $ 225,288 $ 30,991,136 $ Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. There were no investments in any one issuer (other than U.S. Treasury and agency securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-50-
3) CASH AND INVESTMENTS (continued)
Custodial Credit Risk
The custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.
As of June 30, 2024, 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, 2024, was $3,879,732 LAIF is part of the California Pooled Money Investment Account (PMIA), which as of June 30, 2024, had a balance of $178,255,132,764. LAIF is unrated as to credit quality.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-51-
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, 2024, CAMP had a total portfolio of approximately $17 billion of which all was invested in non-derivative financial products.
The average maturity of CAMP investments was 60 days as of June 30, 2024. 4) LEASE RECEIVABLE
On July 1, 2021, the City entered into various leases ranging from 19 - 204 months as a Lessor. An initial lease receivable was recorded in the amount of $1,161,756. As of June 30, 2024, the value of the lease receivable is $1,806,886. The lessee is required to make monthly fixed payments ranging from $400 - $3,042. The leases have interest rates ranging from
0.3160% - 1.9134%. The value of the deferred inflow of resources as of June 30, 2024, was $1,687,749, and the City recognized lease revenue of $833,579, during the fiscal year. The lessees have 1 – 3 extension option(s), each for 60 months.
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
2025 223,410 $ 15,222 $ 238,632 $
2026 201,772 13,497 215,269
2027 155,978 12,072 168,050
2028 133,254 10,805 144,059
2029 117,678 9,603 127,281
2030 - 2034 668,689 28,137 696,826
2035 - 2039 306,105 3,482 309,587
Total 1,806,886 $ 92,818 $ 1,899,704 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-52-
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, 2024, was as follows:
Balance Balance
July 1, 2023 Increases Decreases Transfers June 30, 2024 Governmental Activities:
Capital Assets, Not Being Depreciated/Amortized:
Land 34,543,302 $ - $ - $ - $ 34,543,302 $
Street pavement infrastructure 200,637,525 - - - 200,637,525 Construction In Progress 12,798,039 8,189,396 (473,767) (7,812,401) 12,701,267 Total Capital Assets
Not Being Depreciated/Amortized 247,978,866 8,189,396 (473,767) (7,812,401) 247,882,094 Capital Assets, Being Depreciated/Amortized:
Buildings and improvements 125,508,928 856,480 - 9,557,533 135,922,941 Machinery and equipment 16,160,669 770,644 - - 16,931,313 Motor vehicles 2,297,728 364,955 (261,748) - 2,400,935
Other Infrastructure 161,358,236 9,337,103 - (1,745,132) 168,950,207 Right-to-use subscriptions 541,711 - - - 541,711
Total Capital Assets
Being Depreciated/Amortized: 305,867,272 11,329,182 (261,748) 7,812,401 324,747,107 Less Accumulated Depreciation/Amortization:
Buildings and improvements (37,691,471) (3,307,912) - - (40,999,383) Machinery and equipment (13,363,920) (543,165) - - (13,907,085) Motor vehicles (1,276,578) (206,783) 252,753 - (1,230,608) Other Infrastructure (46,075,880) (2,790,418) - - (48,866,298) Right-to-use subscriptions (138,758) (138,757) - - (277,515) Total Accumulated Depreciation/Amortization (6,987,035) (98,546,607) 252,753 - (105,280,889) Total Capital Assets
Being Depreciated/Amortized, Net 207,320,665 4,342,147 (8,995) 7,812,401 219,466,218 Capital Assets, Net 455,299,531 $ 12,531,543 $ (482,762) $ - $ 467,348,312 $ Depreciation/amortization expense was charged to the following functions in the Statement of Activities:
Governmental Activities:
General government 2,067,661 $
Public safety 74,795
Community development 2,081
Parks and recreation 3,494,394
Public works 1,348,104
Total 6,987,035 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-53-
5) CAPITAL ASSETS (continued)
Balance Balance
July 1, 2023 Increases Decreases Transfers June 30, 2024 Business-Type Activities:
Capital Assets, Not Being Depreciated:
Land 12,721,948 $ - $ - $ - $ 12,721,948 $
Total Capital Assets
Not Being Depreciated 12,721,948 - - - 12,721,948
Capital Assets, Being Depreciated:
Structures and improvements 21,699,710 25,939 - - 21,725,649 Machinery and equipment 3,418,458 295,874 - - 3,714,332 Total Capital Assets
Being Depreciated 25,118,168 321,813 - - 25,439,981
Less Accumulated Depreciation:
Structures and improvements (12,937,230) (597,574) - - (13,534,804) Machinery and equipment (1,647,029) (301,726) - - (1,948,755) Total Accumulated Depreciation (14,584,259) (899,300) - - (15,483,559) Total Capital Assets
Being Depreciated, Net 10,533,909 (577,487) - - 9,956,422 Capital Assets, Net 23,255,857 $ (577,487) $ - $ - $ 22,678,370 $ 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 899,300 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-54-
6) LONG-TERM RECEIVABLES
Loans Receivable (Net)
Loans and notes receivable as of June 30, 2024, totaled $47,910,699 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, 2024, was $18,804,880.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-55-
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, 2024, for Evergreen Villas was $9,700,538.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-56-
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 low-income residents. In June 2013, a second Affordable Housing Agreement was entered into to provide for an additional 54 units in a second phase of development. An Agency acquisition loan was made in an amount not to exceed $5,075,250, secured by a promissory note that the developer was not obligated to pay until it has received its tax credits. At that time the entire loan amount was rolled into the balance of a development loan in an amount not to exceed $3,257,227 towards the construction costs. An additional amount of $480,271 was added to the loan in 2013. The developer will repay the loan over a period of 55 years from the date a certificate of occupancy is issued, with simple interest accruing at a maximum rate of 3% per annum and principal payments to be made from residual receipts generated by the project. In March 2017, the City entered into a second amendment to the agreement to add an additional $2,000,000 to the loan balance, which was subject to funds availability when the City had sufficient housing funds on hand to make the loan. In September 2018, sufficient housing funds were available to the City and the additional loan was disbursed. The outstanding balance as of June 30, 2024, was $12,662,502.
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, 2024
-57-
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, 2024, was $6,742,779.
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, 2024, 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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-58-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2024, was as follows:
A) Due To / From Other Funds
Receiving Funds Amount Paying Funds Amount
Major Governmental Fund Major Governmental Fund
General Fund 5,479,371 $ Miscellaneous Grants Fund 4,835,105 $ Nonmajor Governmental Funds
Measure M Fund 245,185
Road Maintenance and Rehab Fund 309,457
SB-2 Fund 49,175
Traffic Safety Fund 3,757
CDBG Grant Fund 36,692
Total 644,266
$ 5,479,371 5,479,371 $
Interfund balances are the result of short-term borrowing to cover negative cash balances and operating shortages as of June 30, 2024. All of these balances are expected to be reimbursed within the subsequent year.
B) Advances To / From Other Funds
Receiving Funds Amount Paying Funds Amount
Nonmajor Governmental Funds Proprietary Fund
Master Plan of Drainage Fund 1,060,000 $ Black Gold Golf Course Fund 1,060,000 $ $ 1,060,000 1,060,000 $
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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-59-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) C) Interfund Transfers
Receiving Funds Amount Paying Funds Amount
Major Governmental Funds Major Governmental Funds
General Fund 307,552 $ General Fund 5,731,769 $
Landscape Maintenance
Assessment District Fund 1,136,893
Landscape Maintenance
Assessment District Fund 677,115
Miscellaneous Grants Fund 163,308 Public Library Fund 4,065,178 Capital Improvement Fund 21,899,988
Nonmajor Governmental Funds Nonmajor Governmental Funds Lighting and Signal Project Fund 230,831
Gas Tax Fund 4,065,142
Measure M2 Fund 5,092,787
Road Maintenance and
Rehabilitation Fund 1,932,200
Traffic Safety Fund 106,306
Citizen Option Public Safety fund 193,746
Park in Lieu Fund 292,972
Master Plan of Drainage Fund 656,084
Traffic Mitigation fund 161,090
Lighting and Signal Project Fund 748,728
Proprietary Funds
Black Gold Golf Course 15,455
$ 23,738,572 23,738,572 $
The transfer to the Capital Improvements Fund in the amount of $21,899,988 consisted primarily of:
1. The transfer from the General Fund of $4,431,568, 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 $446,284, is related to funding the LMAD Median Landscape Transit project and LMAD Capital Improvement Renovation project.
3. The transfers from the Miscellaneous Grants Fund of $4,065,178 and other nonmajor governmental funds of $12,956,958, were primarily for funding the Capital Improvements Fund for capital expenditures.
The transfer to the Landscape Maintenance Assessment District Fund of $1,136,893 from the General Fund to cover the general benefit costs associated with landscape and lighting maintenance.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-60-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) C) Interfund Transfers (continued)
The transfers to the General Fund of $307,552 were primarily the result of transfers from the nonmajor governmental funds for vehicle fines and COPS funds received.
The transfer to the Lighting and Signal Improvement Fund of $230,831 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, 2024:
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Governmental Activities:
Lease Revenue Bonds 12,530,000 $ - $ (600,000) $ 11,930,000 $ 630,000 $ Unamortized Bond Premium 955,326 - (64,261) 891,065 64,261 Subscription Liability 353,241 - (127,915) 225,326 131,553 Claims and Judgements:
Claims Liability 156,100 775,306 - 931,406 836,648
Workers Compensation 593,242 59,962 - 653,204 89,244
Compensated Absences 1,578,042 506,895 (803,085) 1,281,852 857,508 Net Pension Liability (Note 10) 25,065,294 818,948 - 25,884,242 - Net OPEB Liability (Note 11) 18,033,269 - (865,317) 17,167,952 - Total 59,264,514 $ 2,161,111 $ (2,460,578) $ 58,965,047 $ 2,609,214 $ The Net Pension Liability and Net OPEB Liability are liquidated from the General Fund, Library Fund and Landscape Maintenance Assessment District Fund.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-61-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Lease Revenue Bonds
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, 2024, was $11,930,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
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 725,000 414,138 1,139,138
2029 760,000 377,888 1,137,888
2030 - 2034 4,340,000 1,339,950 5,679,950
2035 - 2038 4,125,000 420,800 4,545,800
Total 11,930,000 $ 3,996,190 $ 15,926,190 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-62-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Subscription Liability
On July 1, 2022, the City entered into various subscriptions ranging from 37 - 60 months for the use of software. An initial subscription liability was recorded in the amount of $481,436. As of June 30, 2024, the value of the subscription liability is $225,326. The City is required to make annual fixed payments ranging from $8,775 to $52,259. The subscriptions have interest rates ranging from 1.7103% - 2.3657%. The value of the right-to-use asset as of June 30, 2024, of $541,711 with accumulated amortization of $277,515 is included on the capital asset note. The City has extension option(s), ranging from 12 to 36 months.
The annual requirements to amortize the outstanding indebtedness as of June 30, 2024, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
2025 131,553 $ 4,255 $ 135,808 $
2026 52,409 1,934 54,343
2027 41,364 979 42,343
Total 225,326 $ 7,168 $ 1,668,740 $
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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-63-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Claims and Judgments (continued)
The City initiated self-insurance programs for general liability and workers’ compensation on July 1, 1985, and July 1, 1989, respectively. Outside insurance coverage is purchased through CIPA for individual claims in excess of the City’s selfinsurance retention limits. Larger claims are processed by an outside insurance service that administers the programs, while smaller claims are processed in-house by the City’s Risk Manager. For general liability claims, CIPA provides 1) a risk-sharing pool for claims in excess of the City’s self-insured retention level of $250,000 up to $3,000,000 and 2) a non-risk-sharing insurance-purchasing pool for claims in excess of $3,000,000 up to $38,000,000 per occurrence.
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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-64-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Claims and Judgments (continued)
On June 30, 2024, 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, 2024, of $1,584,610 is reported in the Statement of Net Position for general liability and workers’ compensation claims and judgments.
Changes in the claims and judgements liability balance for the fiscal years ended June 30, 2024, and 2023, 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
2023 980,871 $ 6,100 $ 237,629 $ 749,342 $
2024 749,342 881,562 46,294 1,584,610
There have been no significant changes to insurance coverage.
The City has not experienced settlements in excess of insurance coverage during the past three years.
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 to the basic financial statements. This liability will be paid in the future from the General Fund or the Public Library Fund. While small amounts of personnel costs are allocated to other funds, the General Fund covers the compensated absences obligations of these other funds. The City Council has established and fully funded a Special Reserves account that offsets the General Fund’s share of this liability. The Public Library Fund maintains operating reserves sufficient to fund its share of the liability. The outstanding balance at June 30, 2024 , was $1,281,852.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-65-
8) LONG-TERM LIABILITIES (continued)
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, 2024:
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Business-Type Activities:
Loan payable 881,416 $ - $ (247,737) $ 633,679 $ 250,992 $ Loan Payable
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, 2024 was $633,679.
Fiscal Year
Ending June 30, Principal Interest Total
2025 250,992 $ 10,738 $ 261,730 $
2026 254,291 7,482 261,773
2027 128,396 4,183 132,579
Total 633,679 $ 22,403 $ 656,082 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-66-
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, 2024, is $1,081,819. 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, 2022 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, 2024
-67-
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, 2024 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 50-67 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% 7.75%
Required employer contribution rates 11.85% 7.75%
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-68-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
A) General Information about the Pension Plan (continued) Employees Covered
On June 30, 2022 (valuation date), the following employees were covered by the benefit terms for the Plan:
Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 161 Inactive employees entitled to but not yet receiving benefits 68 Former employees currently working for another CalPERS agency 61 Active employees 124
Total 414
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, 2024, were $3,174,038.
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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-69-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
B) CalPERS Net Pension Liability (continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Actuarial Cost Method
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table(1) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-70-
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
Asset Class1 Allocation Years 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.85%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-71-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
B) CalPERS Net Pension Liability (continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
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, 2024
-72-
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
Liability (a) Net Position (b) (c)=(a)-(b)
Balance, June 30, 2022 (VD) $ 65,681,476 90,746,770 $ 25,065,294 $ Changes in Recognized for the
Measurement Period:
Service Cost 2,162,403 - 2,162,403
Interest on the Total Pension Liability 6,250,881 - 6,250,881 Changes in Benefit Terms 110,691 - 110,691
Differences between Expected
and Actual Experience 833,551 - 833,551
Contribution from the Employer - 3,087,353 (3,087,353)
Contributions from the Employees - 1,380,978 (1,380,978) Net Investment Income2 4,118,546 - (4,118,546)
Benefit Payments, including Refunds
of Employee Contributions (4,359,468) (4,359,468) -
Administrative Expense - (48,299) 48,299
Other Miscellaneous Income/(Expense) - - -
Net Changes during 2022-23 4,179,110 4,998,058 818,948
Balance, June 30, 2023 (MD)1 $ 69,860,586 95,744,828 $ 25,884,242 $ 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.
Valuation Date (VD), Measurement Date (MD).
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:
Discount Discount
Rate - 1% Current Discount Rate +1%
(5.90%) Rate (6.90%) (7.90%)
Plan's Net Pension Liability 38,989,738 $ 25,884,242 $ 15,139,431 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-73-
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, 2022), the City’s net pension liability was $25,065,294. For the measurement period ending June 30, 2023 (the measurement date), the City incurred pension expense of $4,148,928.
As of June 30, 2024, 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 3,174,038 $ - $ Changes of assumption 1,158,539 -
Differences between expected and actual experience 627,248 (213,964) Net differences between projected and actual earnings
on pension plan investments 3,135,291 -
Total 8,095,116 $ (213,964) $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-74-
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 2022-23 measurement period expense. Contributions subsequent to the measurement date reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Note that no adjustments have been made for contributions subsequent to the measurement date. 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
2025 1,443,799 $
2026 935,013
2027 2,245,250
2028 83,052
E) Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $86,911 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, 2024
-75-
11) OTHER POST-EMPLOYMENT BENEFITS
A) General Information about the Other Post-employment Benefits Plan Plan Description
The City provides other post-employment 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 $2,343,241 and the total actual contribution was $1,412,089 for fiscal year ended June 30, 2024.
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, 2024
-76-
11) OTHER POST-EMPLOYMENT BENEFITS (continued)
A) General Information about the Other Post-employment Benefits Plan (continued) Employees Covered
On June 30, 2023 (measurement date), the following employees were covered by the benefit term:
Inactive employees or beneficiaries currently receiving benefits 74 Inactive employees entitled to but not yet receiving benefits - Active employees 131
Total 205
B) Net OPEB Liability
The net OPEB liability of the Plan was measured as of June 30, 2023, using an interim actuarial valuation as of January 1, 2023, rolled back to June 30, 2023, 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, 2023 (measurement date) actuarial valuation was determined using the following actuarial assumptions:
Measurement Date June 30, 2023
Actuarial Cost Method Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.00%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase 0.40% - 8.50%(1)
Asset Return 6.8%(2)
Mortality Derived using CalPERS' Membership Data for all Funds (1) Depending on age, service and type of employment.
(2) Assuming the City invests in California Employers' Retiree Benefit Trust (CERBT) under its investment allocation strategy.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-77-
11) OTHER POST-EMPLOYMENT BENEFITS (continued)
B) Net OPEB Liability (continued)
Discount Rate
The discount rate used to measure the total OPEB liability as of the June 30, 2023 measurement date, was 6.00%.
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, 2023, are summarized in the following table:
Assumed
Asset Class Target Allocation Gross Return
All Equities 59.0% 7.5450
All Fixed Income 25.0% 4.2500
Real Estate Investment Trusts 8.0% 7.2500
All Commodities 3.0% 7.5450
Treasury Inflation Protected Securities 5.0% 3.0000
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-78-
11) OTHER POST-EMPLOYMENT 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, 2022 (MD) 19,684,458 $ Service Cost 557,494
Interest 1,174,408
Differences between Expected
and Actual Experience (855,566)
Changes of Assumptions (1,268,851)
Experience (Gains)/Losses 155,875
Net Changes during 2022-23 (236,640)
Total OPEB Liability Balance, June 30, 2023 (MD) 19,447,818 Plan Fiduciary Net Position
Contribution from the Employer 511,600
Expected Investment Income
of Employee Contributions 114,403
Admin and Other Expense (547)
Investment Gains/(Losses) 3,221
Net Changes during 2022-23 628,677
Plan Fiduciary Net Position - Beginning 1,651,189
Plan Fiduciary Net Position - Ending 2,279,866
Net OPEB Liability Balance, June 30, 2023 (MD) 17,167,952 $ 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 6.00%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.00%) or 1-percentagepoint higher (7.00%) than the current rate:
Discount Rate - Current Discount Discount Rate
1% (5.00%) Rate (6.00%) +1% (7.00%)
Net OPEB Liability 19,703,780 $ 17,167,952 $ 15,071,487 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-79-
11) OTHER POST-EMPLOYMENT 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 14,705,652 $ 17,167,952 $ 20,230,389 $ D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $569,443.
At measurement date of June 30, 2023, 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 1,412,089 $ - $ Differences between expected and actual experience 137,536 (1,714,553) in measurement of the Total OPEB Liability - -
Changes of assumption 1,897,489 (3,551,491)
Differences between projected and actual earnings
on OPEB plan investments 139,772 -
Total 3,586,886 $ (5,266,044) $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-80-
11) OTHER POST-EMPLOYMENT BENEFITS (continued)
D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (continued)
The amount of $1,412,089 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 upcoming fiscal year. 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
2025 (1,045,608) $
2026 (1,053,492)
2027 (1,009,043)
2028 (167,070)
2029 (166,430)
Thereafter 350,396
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-81-
12) NET POSITION
As of June 30, 2024, the City reported the following net position classifications:
Net investment in capital assets:
Governmental activities capital assets, net 467,348,312 $ Lease Revenue Bonds (11,930,000)
Unamortized bond premium (891,065)
Subscription liability (225,326)
Total net investment in capital assets 454,301,921 $
Restricted for:
General government 335,741
Parks and recreation 1,427,620
Public works 21,246,629
Library 7,166,935
Low and moderate housing 53,002,589
Unrestricted 8,266,707
Total net position - governmental activities 545,748,142 $ Net investment in capital assets:
Business-type activities capital assets, net 22,678,370 $ Loan Payable (633,679)
Unspent proceeds - Loan Payable 73,335
Total net investment in capital assets 22,118,026 $
Unrestricted (461,860)
Total net position - business-type activities 21,656,166 $ 13) 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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-82-
13) JOINT VENTURES (continued)
Orange County Fire Authority (continued)
The effective date of formation was March 1, 1995. The Authority’s governing board consists of one representative from each City and two from the County. The operations of the Authority are funded with structural fire fees collected by the County through the property tax roll for the unincorporated areas of the County and on behalf of all member Cities except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia and Seal Beach. The County pays all structural fire fees it collects to the Authority. The Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia and Seal Beach are considered “cash contract Cities” and accordingly, make cash contributions based on the Authority’s annual budget.
No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2024. 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. 14) 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 16, 2023, 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 operating expenditures. The contract is reimbursement-based, with a year-end reconciliation payment to adjust for actual costs.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-83-
14) COMMITMENTS AND CONTINGENT LIABILITIES (continued)
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 $101,980 at June 30, 2024. 15) 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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-84-
15) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued)
A) Cash and Investments
The following is a summary of Successor Agency cash and investments as of June 30, 2024:
Pooled cash and investments 6,843,350 $
Restricted cash and investments held with fiscal agent 4,101 Total cash and investments 6,847,451 $
The Successor Agency’s cash and investments are pooled with the City’s cash and investment in order to generate optimum interest income. The share of the pooled cash account is separately accounted for, and investment income is allocated to all participating funds based on the relationship of their average daily cash balances to the total of the pooled cash and investments. Information regarding the authorized types of deposits and investments, the type of risks (i.e., credit, interest rate, custodial, etc.) and other disclosures associated with the City's pooled cash and investments and those restricted with fiscal agent is reported in Note 3 to the basic financial statements.
B) Long-Term Liabilities
A description of long-term liabilities outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2024, follows:
Balance Accreted Balance Due Within
June 30, 2023 Interest Deletions June 30, 2024 One Year Tax Allocation Bonds 33,855,221 $ - $ 2,724,756 $ 31,130,465 $ 390,000 $ Unamortized Premium 1,416,369 - 154,157 1,262,212 154,157 Unamortized Gain on
Defeasance 2,380,103 - 259,046 2,121,057 259,046
Unamortized Discount (44,063) - (4,798) (39,265) 4,796
Total 37,607,630 $ - $ 3,133,161 $ 34,474,469 $ 807,999 $ There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-85-
15) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued)
B) Long-Term Liabilities (continued)
Tax Allocation Bonds
The former Redevelopment Agency pledged, as security for bonds issued, a portion of property tax increment revenue that it receives. The bonds issued were to provide financing for various capital projects and to defease previously issued bonds.
Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to former redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency.
1998 Tax Allocation Parity Refunding Bonds, Series A
On June 18, 1998, the Yorba Linda Redevelopment Agency issued $17,131,503 in 1998 Tax Allocation Parity Refunding Bonds, Series A, with interest rates ranging from
4.05% to 5.00% to advance refund the remaining $15,890,000 of outstanding 1989 Tax Allocation Bonds with interest rates ranging from 6.750% to 7.125%. Current interest serial bonds totaling $12,645,000 were payable in amounts ranging from $1,030,000 to $2,025,000 per year on September 1 of each year, commencing September 1, 2002 through September 1, 2009. Capital appreciation serial bonds with an original amount totaling $4,486,503 are due on each September 1, commencing September 1, 2024 through 2028. The outstanding balance, including the accreted value of $13,253,962 of the capital appreciation bonds as of June 30, 2024, was $17,740,465.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
2025 996,572 $ 2,978,428 $ 3,975,000 $
2026 945,335 3,029,665 3,975,000
2027 896,720 3,078,280 3,975,000
2028 845,761 3,129,239 3,975,000
2029 802,115 3,172,885 3,975,000
Total 4,486,503 15,388,497 $ 19,875,000 $
Accretion 13,253,962
$ 17,740,465
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
-86-
15) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued)
B) Long-Term Liabilities (continued)
2017 Tax Allocation Refunding Bonds, Series A (Tax-Exempt) and B (Taxable) On August 24, 2017, the Successor Agency to the Yorba Linda Redevelopment Agency issued $15,070,000 in tax-exempt Tax Allocation Refunding Bonds, Series A, with interest rates ranging from 3.000% to 5.000%, and $12,570,000 in taxable Tax Allocation Refunding Bonds, Series B, with interest rates ranging from 1.500% to
3.625%. These bonds were issued to refund the following obligations of the former Redevelopment Agency:
1. Partial outstanding balance of the 1993 Tax Allocation Bonds - $14,000,000
2. The outstanding balance of the 2005 Tax Allocation Bonds - $11,770,000
3. The outstanding balance of the 2011 Tax Allocation Bonds - $4,206,250 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, 2024, was $13,390,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
2025 390,000 $ 464,281 $ 854,281 $
2026 440,000 452,919 892,919
2027 450,000 440,194 890,194
2028 450,000 426,794 876,794
2029 465,000 412,632 877,632
2030-2034 11,195,000 799,416 11,994,416
Total 13,390,000 $ 2,996,236 $ 16,386,236 $
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.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY
INFORMATION
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2024
-87-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 37,554,075 $ 37,362,775 $ 37,421,910 $ 59,135 $
Licenses and permits 1,553,500 1,613,500 1,715,183 101,683 Intergovernmental 754,922 659,922 747,230 87,308
Charges for services 5,902,916 5,903,416 5,332,330 (571,086) Investment income 390,560 390,560 1,632,083 1,241,523
Fines and forfeitures 45,000 45,000 50,842 5,842
Gain on sale of City property 210,000 225,000 276,193 51,193 Miscellaneous 382,260 444,442 1,670,346 1,225,904
Total revenues 46,644,615 46,793,233 48,846,117 2,201,502 Expenditures
General government:
Administration 8,862,080 9,771,296 8,729,202 1,042,094
City Attorney 650,000 650,000 324,316 325,684
Finance 1,370,222 1,382,648 1,330,118 52,530
Public safety 14,638,543 14,373,543 14,134,730 238,813
Community development 3,765,294 4,358,130 4,041,043 317,087 Parks and recreation 9,730,150 9,911,838 9,249,343 662,495 Public works 6,176,058 6,250,513 5,352,685 897,828
Capital outlay 607,000 684,238 321,171 363,067
Debt service:
Principal retirement - - 127,915 (127,915)
Interest - - 6,490 (6,490)
Total expenditures 47,382,206 45,799,347 43,617,013 3,765,193 Excess of Revenues over
(under) Expenditures 993,886 (737,591) 5,229,104 5,966,695 Other financing sources (uses):
Transfers in 229,000 307,552 307,552 -
Transfers out (14,084,585) (14,341,210) (5,731,769) 8,609,441 Total other financing sources (uses) (13,855,585) (14,033,658) (5,424,217) 8,609,441 Net change in fund balance (12,861,699) (14,771,249) (195,113) 14,576,136 Fund balance at beginning of fiscal year 44,428,734 44,428,734 44,428,734 - Fund balance at end of fiscal year 31,567,035 $ 29,657,485 $ 44,233,621 $ 14,576,136 $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Affordable Housing Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-88-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental - $ - $ 528,111 $ 528,111 $
Investment income 21,555 21,555 832,183 810,628
Total revenues 21,555 21,555 1,360,294 1,338,739
Expenditures
Community development 58,500 531,510 531,508 2
Total expenditures 531,510 58,500 531,508 2
Net change in fund balance (36,945) (509,955) 828,786 1,338,741 Fund balance at beginning of fiscal year 52,088,149 52,088,149 52,088,149 - Fund balance at end of fiscal year 52,051,204 $ 51,578,194 $ 52,916,935 $ 1,338,741 $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Miscellaneous Grants Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-89-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 8,651,082 $ 8,651,082 $ 483,043 $ (8,168,039) $ Total revenues 8,651,082 8,651,082 483,043 (8,168,039)
Other financing sources (uses):
Transfers in - 163,308 163,308 -
Transfers out (8,651,082) (12,168,916) (4,065,178) 8,103,738 Total other financing sources (uses) (8,651,082) (12,005,608) (3,901,870) 8,103,738 Net change in fund balance - (3,354,526) (3,418,827) (64,301) Fund balance (deficit) at beginning of fiscal year (1,332,575) (1,332,575) (1,332,575) - Fund balance (deficit) at end of fiscal year (1,332,575) $ (4,687,101) $ (4,751,402) $ (64,301) $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Public Library Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
-90-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 8,007,328 $ 8,007,328 $ 8,140,082 $ 132,754 $
Licenses and permits - - 18,500 18,500
Intergovernmental - 21,000 13,077 (7,923)
Charges for services 158,000 158,000 218,446 60,446
Investment income 48,160 48,160 290,013 241,853
Fines and forfeitures 25,000 25,000 41,776 16,776
Miscellaneous - - 580 580
Total revenues 8,259,488 8,238,488 8,722,474 462,986
Expenditures
Library 6,637,411 6,822,414 6,371,104 451,310
Capital outlay 153,650 184,584 63,331 121,253
Debt service:
Principal retirement 600,000 600,000 600,000 -
Interest 543,138 543,138 543,138 -
Total expenditures 8,150,136 7,934,199 7,577,573 572,563 Net change in fund balance 304,289 109,352 1,144,901 1,035,549 Fund balance at beginning of fiscal year 6,040,079 6,040,079 6,040,079 - Fund balance at end of fiscal year 6,344,368 $ 6,149,431 $ 7,184,980 $ 1,035,549 $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Landscape Maintenance Assessment District Special Revenue Fund For the Fiscal Year Ended June 30, 2024
-91-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 9,656,725 $ 9,656,725 $ 9,711,624 $ 54,899 $
Investment income 81,303 81,303 368,508 287,205
Miscellaneous 10,000 10,000 48,347 38,347
Total revenues 9,748,028 9,748,028 10,128,479 380,451
Expenditures
Public works 10,488,903 10,483,903 9,489,204 994,699
Total expenditures 10,483,903 10,488,903 9,489,204 994,699 Excess of Revenues over
(under) Expenditures (740,875) (735,875) 639,275 1,375,150 Other financing sources (uses):
Transfers in 1,147,637 1,147,637 1,136,893 (10,744)
Transfers out (1,408,563) (2,188,122) (677,115) 1,511,007 Total other financing sources (uses) (260,926) (1,040,485) 459,778 1,500,263 Net change in fund balance (1,001,801) (1,776,360) 1,099,053 2,875,413 Fund balance at beginning of fiscal year 8,095,521 8,095,521 8,095,521 - Fund balance at end of fiscal year 7,093,720 $ 6,319,161 $ 9,194,574 $ 2,875,413 $
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-92-
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 82 for the City’s pavement.
The City Management, in consultation with the Public Works Department, has established the OCTA’s standard for receiving competitive grant funding of a PCI of 75 as the condition level against which the City’s current PCI should be measured. With a current PCI score of 82, 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, 2024
-93-
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 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
2022-2023 82 8,200,000 6,650,803
2023-2024* 78 8,800,000 11,900,000
*Denotes years condition assessment was performed.
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-94-
2) Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years Measurement Measurement Measurement Measurement Measurement Date Date Date Date Date
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability
Service cost 2,162,403 $ 2,107,336 $ 1,885,407 $ 1,696,577 $ 1,623,776 $ Interest on total pension liability 6,250,881 5,919,104 5,709,277 5,438,271 5,230,301 Changes in assumptions - 2,606,715 - - -
Changes of Benefit Terms 110,691
Difference between expected and actual
experience 833,551 (481,420) 272,016 (252,047) 716,490
Benefit payments, including refunds of
employee contributions (4,359,468) (4,020,261) (3,773,449) (3,648,478) (3,811,074) Net change in total pension liability 4,998,058 6,131,474 4,093,251 3,234,323 3,759,493 Total pension liability - beginning 90,746,770 84,615,296 80,522,045 77,287,722 73,528,229 Total pension liability - ending (a) 95,744,828 90,746,770 84,615,296 80,522,045 77,287,722 Plan Fiduciary Net Position
Contributions - employer 3,087,353 2,692,476 2,521,606 2,329,240 2,063,002 Contributions - employee 1,380,978 1,334,623 1,317,894 1,285,901 1,228,098 Net investment income 4,118,546 (5,414,116) 13,199,190 2,777,374 3,467,727 Benefit payments, including refunds of
employee contributions (4,359,468) (4,020,261) (3,773,449) (3,648,478) (3,811,074) Net plan to plan resource movement - - - - -
Administrative expense (48,299) (44,312) (57,864) (77,902) (37,357) Other miscellaneous income/(expense) - - - - 122
Net change in plan fiduciary net position 4,179,110 (5,451,590) 13,207,377 2,666,135 2,910,518 Plan fiduciary net position - beginning 65,681,476 71,133,066 57,925,689 55,259,554 52,349,036 Plan fiduciary net position - ending (b) 69,860,586 65,681,476 71,133,066 57,925,689 55,259,554 Plan net pension liability - ending (a) - (b) 25,884,242 $ 25,065,294 $ 13,482,230 $ 22,596,356 $ 22,028,168 $ Plan fiduciary net position as a
percentage of the total pension liability 72.97% 72.38% 84.07% 71.94% 71.50% Covered payroll 11,577,670 $ 10,839,343 $ 10,325,891 $ 9,867,749 $ 9,542,965 $ Net pension liability as a percentage of
covered payroll 223.57% 231.24% 130.57% 228.99% 230.83%
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-95-
2) Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years (continued)
Measurement Measurement Measurement Measurement Measurement Date Date Date Date Date
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 $ 1,472,818 1,458,002 $ 1,318,758 $ 1,295,229 $ 1,290,965 $ 4,762,222 4,969,509 4,610,554 4,439,809 4,254,542
4,016,681 (313,447) - (1,091,497) -
(618,862) 203,742 (505,685) (236,444) -
(3,089,914) (3,347,753) (3,046,770) (2,971,575) (2,848,785) 6,542,945 2,970,053 2,376,857 1,435,522 2,696,722
64,015,231 70,558,176 61,638,374 60,202,852 57,506,130
70,558,176 73,528,229 64,015,231 61,638,374 60,202,852
1,483,366 1,833,255 1,186,312 1,121,845 1,245,275
1,062,547 1,150,359 979,418 925,172 636,643
4,935,247 4,165,920 222,302 944,792 6,731,502
(3,089,914) (3,347,753) (3,046,770) (2,971,575) (2,848,785) - (122) - - -
(65,616) (75,993) (27,503) - -
- (144,313) - - -
4,325,630 3,581,353 (686,241) 20,234 5,764,635
44,442,053 48,767,683 45,128,294 45,108,060 39,343,425
48,767,683 52,349,036 44,442,053 45,128,294 45,108,060
$ 21,790,493 21,179,193 $ 19,573,178 $ 16,510,080 $ 15,094,792 $
71.20% 69.12% 69.42% 73.21% 74.93%
$ 7,779,688 8,376,724 $ 7,479,560 $ 7,574,466 $ 7,672,440 $ 252.83% 280.09% 261.69% 217.97% 196.74%
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-96-
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, 2022 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-97-
3) Schedule of Pension Contributions – Last 10 Years
Fiscal year ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Actuarially determined contribution 2,787,414 $ 2,716,202 $ 2,412,234 $ 2,270,954 $ Contributions in relation to the
actuarially determined contributions (3,174,038) (3,083,164) (2,692,503) (2,329,240) Contribution deficiency (excess) (386,624) $ (366,962) $ (280,269) $ (58,286) $ Covered payroll 11,889,076 $ 11,577,670 $ 10,839,343 $ 10,325,891 $ Contributions as a percentage of covered
payroll 26.70% 26.63% 24.84% 22.56%
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-98-
3) Schedule of Pension Contributions – Last 10 Years (continued) June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 $ 1,706,948 2,001,025 $ 1,417,449 $ 1,268,816 $ 1,186,312 $ 1,121,845 $ (2,063,002) (2,329,240) (1,833,255) (1,483,366) (1,186,312) (1,121,845) $ (356,054) (328,215) $ (415,806) $ (214,550) $ - $ - $ $ 9,542,965 9,867,749 $ 8,376,724 $ 7,779,688 $ 7,479,560 $ 7,574,466 $
23.60% 21.62% 21.89% 19.07% 15.86% 14.81%
Notes to Schedule of Pension Contributions
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were from the June 30, 2022 Funding Valuation Report.
City of Yorba Linda
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2024
-99-
4) Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years* Measurement Measurement Measurement Measurement Measurement Measurement Date Date Date Date Date Date
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB Liability
Service cost 557,494 $ 511,612 $ 432,681 $ 514,178 $ 1,041,877 $ 1,616,456 $ Interest on total OPEB liability 1,174,408 1,168,575 1,102,167 1,081,753 1,103,430 1,051,971 Differences between expected and
actual experience (855,566) (167,601) (17,234) (738,379) (3,081,922) (2,643,488) Changes in assumptions (1,268,851) 1,867,235 554,630 (1,509,066) (4,249,457) (3,754,316) Experience (Gains)/Losses 155,875 - - - - -
Benefit payments, including refunds of
employee contributions - (725,445) (697,659) (688,476) (708,272) (701,025) Net change in total OPEB liability (236,640) 2,654,376 1,374,585 (1,339,990) (5,894,344) (4,430,402) Total OPEB liability - beginning 19,684,458 17,030,082 15,655,497 16,995,487 22,889,831 27,320,233 Total OPEB liability - ending (a) 19,447,818 19,684,458 17,030,082 15,655,497 16,995,487 22,889,831 Plan Fiduciary Net Position
Contributions - employer 511,600 995,445 997,659 919,194 942,684 935,437 Net investment income 114,403 (252,164) 304,626 22,861 57,133 17,983 Benefit payments, including refunds of
employee contributions - (725,445) (697,659) (688,476) (708,272) (701,025) Administrative expense (547) (432) (436) (437) (133) (184) Investment Gains/(Losses) 3,221 - - - - -
Other - - - - (309)
Net change in plan fiduciary net position 628,677 17,404 604,190 253,142 291,412 251,902 Plan fiduciary net position - beginning 1,651,189 1,633,785 1,029,595 776,453 485,041 233,139 Plan fiduciary net position - ending (b) 2,279,866 1,651,189 1,633,785 1,029,595 776,453 485,041 Net OPEB liability - ending (a) - (b) 17,167,952 $ 18,033,269 $ 15,396,297 $ 14,625,902 $ 16,219,034 $ 22,404,790 $ Plan fiduciary net position as a percentage
of the total OPEB liability 11.72% 8.39% 9.59% 6.58% 4.57% 2.12% Covered payroll 11,577,670 $ 10,839,343 $ 10,325,891 $ 9,867,749 $ 9,542,965 $ 8,376,724 $ Net OPEB liability as a percentage of
covered payroll 148.29% 166.37% 149.10% 148.22% 169.96% 267.46% *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, 2024
-100-
5) Schedule of OPEB Contributions – Last 10 Years*
Fiscal year ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Actuarially determined contribution 2,343,241 $ 2,383,354 $ 2,290,449 $ 919,194 $ 1,909,606 $ 2,107,584 $ Contributions in relation to the
actuarially determined contributions (1,412,089) (1,235,999) (683,193) (599,730) (771,379) (832,398) Contribution deficiency (excess) 931,152 $ 1,147,355 $ 1,607,256 $ 319,464 $ 1,138,227 $ 1,275,186 $ Covered payroll 11,889,076 $ 11,577,670 $ 10,839,343 $ 10,325,891 $ 9,867,749 $ 9,542,965 $ Contributions as a percentage of
covered payroll 11.88% 10.68% 6.30% 5.81% 7.82% 8.72%
*Fiscal year 2018 was the first year of implementation; additional information will be presented as it becomes available.
Notes to Schedule of OPEB Contributions
*Fiscal year 2018 was the first year of implementation; additional information will be presented as it becomes Valuation Date June 30, 2023
Measurement Date June 30, 2023
Amortization Method Level Percent of Payroll
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.00%
Inflation 2.50%
Projected Salary Increase 2.75%
Investment Rate of Return 6.00%(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, 2024
-101-
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.
THIS PAGE INTENTIONALLY LEFT BLANK
OTHER SUPPLEMENTARY
INFORMATION
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, 2024
-102-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Expenditures
Capital outlay 36,613,064 $ 44,579,773 $ 21,899,988 $ 22,679,785 $ Total expenditures 44,579,773 36,613,064 21,899,988 22,679,785 Excess of Revenues over
(under) Expenditures (36,613,064) (44,579,773) (21,899,988) 22,679,785 Other financing sources (uses):
Transfers in 36,613,064 45,360,292 21,899,988 (23,460,304) Total other financing sources (uses) 36,613,064 45,360,292 21,899,988 (23,460,304) Net change in fund balance - 780,519 - (780,519)
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year - $ 780,519 $ - $ (780,519) $
City of Yorba Linda
Description of Nonmajor Funds
For the Fiscal Year Ended June 30, 2024
-103-
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.
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.