EXHIBIT 1
REVISED EXHIBIT A
RESOLUTION NO. 2026-6003
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
YORBA LINDA, APPROVING THE FORTH AMENDMENT TO
THE AMENDED AND RESTATED AGREEMENT FOR SOLID
WASTE HANDLING SERVICES BETWEEN CITY OF YORBA
LINDA AND REPUBLIC WASTE SERVICES OF SOUTHERN
CALIFORNIA, LLC.
WHEREAS, the City of Yorba Linda (“City”) and Republic Waste Services of Southern California, LLC (“Contractor”) have entered that certain Agreement for Solid Waste Handling Services effective as of April 7, 2015 (the “Agreement”); and WHEREAS, Contractor is an affiliate of Republic Services, Inc., a Delaware corporation (“Guarantor”), and Guarantor has entered into a written Guarantee Agreement (the “Guarantee”) with City related to Contractor’s performance pursuant to the terms of the Agreement; and
WHEREAS, City and Contractor amended the Agreement by a First Amendment effective as of July 1, 2018 (the “First Amendment”), a Second Amendment effective as of January 1, 2020 (the “Second Amendment”), and a Third Amendment effective as of July 1, 2022 (the “Third Amendment”) [the Agreement, as amended by the First, Second and Third Amendments, is sometimes referred to herein as the “Agreement”]; and WHEREAS, In 2016 Senate Bill became effective which seeks to reduce methane emissions on a Statewide basis, and, in November 2020 regulations were adopted which added Chapter 12 to 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR to implement Senate Bil 1383 (collectively referred to herein as “SB 1383”); and
WHEREAS, SB 1383, and more specifically 14 CCR §18993.1, imposes an obligation on the City to annually procure a quantity of Recovered Organic Waste Products (“ROWP”) that meets or exceeds City’s annual ROWP procurement target as determined by Applicable Law (the “Procurement Target”); and
WHEREAS, When the Third Amendment became effective, the Parties were in the process of negotiating, and contemplated entering a subsequent agreement by which Contractor would assist City in procuring ROWP of a type and quantity sufficient to enable it to meet some or all of its required Procurement Target; and WHEREAS, City and Contractor have now reached an agreement by which Contractor (a direct service provider to City as defined in 14 CCR §18993.1(e)) has agreed to take such steps as necessary to ensure City meets it Procurement Target, and otherwise complies with related laws and regulations, and intends to do so by procuring compost and/or mulch that complies with the requirements of the Applicable Laws on behalf of City.
WHEREAS, In exchange for Contractor ensuring City in in compliance with its Procurement Target related obligations, City has agreed to increase the maximum rate that Contractor may charge Customers for the services it provides in order to enable it to be compensated for its services.
WHEREAS, SB 1383 additionally imposes significant administrative burdens on City related to a variety of activities including without limitation enforcement, reporting, recordkeeping, which burdens were not accounted for in the Administrative Cost Reimbursement called out in the Agreement, and the Parties desire to amend the Agreement to account for such administrative burdens; and WHEREAS, The Agreement provides that the “Service Component” of the maximum rates is Contractor may charge Customers for services subject to an annual CPI adjustment, and may be adjusted in the discretion of the City such as is contemplated to address the costs of Contractor ensuring City complies with its Procurement Target related obligations; and
WHEREAS, The Agreement provides that the “Disposal Component” of the maximum rates is subject to adjustment at such times as the cost of disposal at the Orange County Landfill System adjusts as contemplated by the County Agreement; and WHEREAS, City has entered into that certain agreement with the County known as the WISE Agreement, which the Parties acknowledge and agree is an amendment to the County Agreement, that among other things results in an increase to the Disposal Component of the maximum rates set forth in Exhibit A pursuant to the Agreement; and WHEREAS, The Parties desire to amend Exhibit A to the Agreement so as to reflect changes to the maximum rates set forth therein effective as of July 1, 2026, based upon Contractor’s agreement to cause the City to meet its obligations related to its Procurement Target, and taking into account adjustments to maximum rates including those required by the Agreement due to changes in the CPI and charges to the Disposal Component WHEREAS, Guarantor has reviewed this Fourth Amendment and remains willing to apply its Guarantee to Contractor’s performance under the Agreement as amended by the First, Second, Third and Fourth Amendment; and
WHEREAS, The parties now desire to enter this Fourth Amendment for the purpose of setting forth their agreements and understandings with respect to amendments to the Agreement; and
WHEREAS, California Public Resources Code Section 49300 requires the City Council to approve the terms of the proposed Fourth Amendment to the Agreement with Contractor pursuant to a resolution; and
WHEREAS, the provision of solid waste handling services is an activity supported in part through a public agency contract and therefore may be considered a "project" under the California Environmental Quality Act ("CEQA") (Pub. Res. Code §§ 21000 et seq.) (14 Cal. Code Regs. § 15378(a)(2)); and
WHEREAS, it can be seen with certainty that there is no possibility that the proposed Fourth Amendment could have a significant effect on the environment in that it is merely the continuation of an existing service in the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:
SECTION 1. Each of the above recitals is true and correct and is adopted by the City Council.
SECTION 2. The City Council finds that the approval of the Fourth Amendment to the Agreement is exempt from CEQA under the “common-sense” exemption set forth in CEQA Guidelines section 15061(b)(3).
SECTION 3. The City Council hereby agrees to enter into the Fourth Amendment to the Agreement with Contractor, subject to the terms set forth in this Resolution and the Fourth Amendment to the Agreement, which is attached hereto as Exhibit “A” and incorporated herein by this reference.
SECTION 4. The City Council hereby authorizes the Mayor to execute the Fourth Amendment to the Agreement on behalf of the City.
PASSED, APPROVED, AND ADOPTED this 16th day of June, 2026.
CARLOS RODRIGUEZ, MAYOR
CITY OF YORBA LINDA
ATTEST:
MARCIA BROWN, CITY CLERK
CITY OF YORBA LINDA
APPROVED AS TO FORM:
TODD O. LITFIN, CITY ATTORNEY
EXHIBIT A
Service Disposal Total
SINGLE FAMILY DWELLINGS
Standard Rate - Three Carts (Refuse, Recycling, and Organics) 31.55 $ 6.02 $ 37.57 $ Additional Refuse Carts (1st extra) 6.45 $ 6.02 $ 12.47 $ Additional Refuse Carts (2 or more) 10.15 $ 6.02 $ 16.17 $ Additional Organics Cart (each) 6.09 $ 6.02 $ 12.11 $
Extra Cart Pickups (per pickup) 27.23 $ 6.02 $ 33.25 $
Walkout Service (Customers not eligible for free service) 15.14 $ - $ 15.14 $ Cart Replacement for Customer Miss-Use 96.42 $ - $ 96.42 $ Exchange Carts 54.50 $ - $ 54.50 $
Residential Kitchen Pails (pickup at Republic CVT Facility) 11.87 $ - $ 11.87 $ Residential Organics and Recycling Contamination Fee per Cart per Occurence- Beginning July 1, 2023, following three (3) documented warnings $ - 11.87 $ 11.87 $
2 cubic yard Bin
1 pickup per week 117.71 $ 28.48 $ 146.19 $
2 pickups per week 189.97 $ 56.99 $ 246.96 $
3 pickups per week 262.24 $ 85.47 $ 347.71 $
4 pickups per week 334.50 $ 113.96 $ 448.46 $
5 pickups per week 406.74 $ 142.45 $ 549.19 $
6 pickups per week 478.98 $ 170.90 $ 649.88 $
Extra pickups 55.33 $ 28.48 $ 83.81 $
MANURE
2 cubic yard Bin
1 pickup per week 293.05 $ 31.37 $ 324.42 $
COMMERCIAL AND MULTI-FAMILY DWELLINGS SERVICES
95 Gallon Commercial Cart - Recycle 1 pickup per week 47.24 $ (0.00) $ 47.24 $ 96 Gallon Commercial Cart - MSW 1 pickup per week 36.09 $ 6.02 $ 42.11 $ 96 Gallon Commercial Cart - MSW 2 pickups per week 72.21 $ 12.03 $ 84.24 $ 96 Gallon Commercial Cart - MSW 3 pickups per week 108.29 $ 18.05 $ 126.34 $ 35 Gallon Cart - Organics/Green Waste Cart 1 pickup per week 36.09 $ 6.02 $ 42.11 $ 35 Gallon Cart - Organics/Green Waste Cart 2 pickups per week 72.21 $ 12.03 $ 84.24 $ 35 Gallon Cart - Organics/Green Waste Cart 3 pickups per week 108.29 $ 18.05 $ 126.34 $ New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
64 Gallon Cart - Organics/Green Waste Cart 1 pickup per week 56.67 $ 6.02 $ 62.69 $ 64 Gallon Cart - Organics/Green Waste Cart 2 pickups per week 113.38 $ 12.03 $ 125.41 $ 64 Gallon Cart - Organics/Green Waste Cart 3 pickups per week 170.07 $ 18.05 $ 188.12 $ 2 cubic yard Organics/Green Waste Bin
1 pickup per week 158.94 $ 39.41 $ 198.35 $
2 pickups per week 236.39 $ 39.59 $ 275.98 $
3 pickups per week 313.89 $ 39.70 $ 353.59 $
Each additional pickups per week 69.73 $ 39.24 $ 108.97 $ 2 cubic yard Bin
1 pickup per week 169.29 $ 39.41 $ 208.70 $
2 pickups per week 251.10 $ 39.59 $ 290.69 $
3 pickups per week 332.92 $ 39.70 $ 372.62 $
4 pickups per week 414.74 $ 39.87 $ 454.61 $
5 pickups per week 496.56 $ 39.98 $ 536.54 $
6 pickups per week 578.40 $ 40.13 $ 618.53 $
Each additional pickups per week 69.73 $ 39.24 $ 108.97 $ 2 cubic yard Recycle Bin
1 pickup per week 158.37 $ (0.00) $ 158.37 $
2 pickup per week 224.75 $ (0.00) $ 224.75 $
3 pickup per week 291.14 $ (0.00) $ 291.14 $
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
3 cubic yard Bin
1 pickup per week 185.52 $ 43.18 $ 228.70 $
2 pickups per week 290.52 $ 86.20 $ 376.72 $
3 pickups per week 395.51 $ 129.26 $ 524.77 $
4 pickups per week 500.53 $ 172.28 $ 672.81 $
5 pickups per week 605.52 $ 215.27 $ 820.79 $
6 pickups per week 710.50 $ 258.36 $ 968.86 $
Extra pickups 66.62 $ 42.98 $ 109.60 $
3 cubic yard Recycle Bin
1 pickup per week 180.74 $ 0.32 $ 181.06 $
2 pickups per week 281.87 $ 0.49 $ 282.36 $
3 pickups per week 383.01 $ 0.67 $ 383.68 $
4 pickups per week 484.20 $ 0.87 $ 485.07 $
5 pickups per week 585.34 $ 1.07 $ 586.41 $
6 pickups per week 686.47 $ 1.21 $ 687.68 $
Extra pickups 65.63 $ 0.09 $ 65.72 $
3 cubic yard compactor
1 pickup per week 247.44 $ 57.55 $ 304.99 $
2 pickups per week 407.46 $ 115.03 $ 522.49 $
3 pickups per week 567.49 $ 172.46 $ 739.95 $
4 pickups per week 727.53 $ 229.85 $ 957.38 $
5 pickups per week 887.53 $ 287.33 $ 1,174.86 $
6 pickups per week 1,047.51 $ 344.77 $ 1,392.28 $
Extra pickups 111.83 $ 57.37 $ 169.20 $
4 cubic yard Bin
1 pickup per week 213.33 $ 49.67 $ 263.00 $
2 pickups per week 362.82 $ 57.20 $ 420.02 $
3 pickups per week 514.61 $ 61.37 $ 575.98 $
4 pickups per week 667.39 $ 64.15 $ 731.54 $
5 pickups per week 820.66 $ 66.07 $ 886.73 $
6 pickups per week 974.27 $ 67.61 $ 1,041.88 $
Extra pickups 76.61 $ 49.42 $ 126.03 $
4 cubic yard Recylce Bin
1 pickup per week 210.01 $ 0.37 $ 210.38 $
2 pickups per week 341.29 $ 0.60 $ 341.89 $
3 pickups per week 472.59 $ 0.83 $ 473.42 $
4 pickups per week 603.88 $ 1.10 $ 604.98 $
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
5 pickups per week 735.12 $ 1.33 $ 736.45 $
6 pickups per week 866.46 $ 1.53 $ 867.99 $
Extra pickups 75.49 $ 0.11 $ 75.60 $
6 cubic yard Bin
1 pickup per week 371.04 $ 86.37 $ 457.41 $
2 pickups per week 581.03 $ 172.39 $ 753.42 $
3 pickups per week 791.02 $ 258.51 $ 1,049.53 $
4 pickups per week 1,001.08 $ 344.56 $ 1,345.64 $
5 pickups per week 1,211.02 $ 430.56 $ 1,641.58 $
6 pickups per week 1,420.99 $ 516.70 $ 1,937.69 $
Extra pickups 133.25 $ 85.96 $ 219.21 $
8 cubic yard Bin
1 pickup per week 426.68 $ 99.34 $ 526.02 $
2 pickups per week 725.61 $ 114.39 $ 840.00 $
3 pickups per week 1,029.26 $ 122.72 $ 1,151.98 $
4 pickups per week 1,334.78 $ 128.31 $ 1,463.09 $
5 pickups per week 1,641.33 $ 132.15 $ 1,773.48 $
6 pickups per week 1,948.56 $ 135.21 $ 2,083.77 $
Extra pickups 153.25 $ 98.85 $ 252.10 $
PERMANENT ROLLOFF SERVICE
Rolloff Box - 15 cubic yard - Demolition
(cost per load / 8 ton limit) 488.74 $ 409.88 $ 898.62 $ Rolloff Box - 30 cubic yard
(cost per load / 8 ton limit) 477.04 $ 326.77 $ 803.81 $ Rolloff Box - 40 yard compactor
(cost per load / 8 ton limit) 576.17 $ 483.12 $ 1,059.29 $ Rolloff Box - 30 cubic yard - Greenwaste
(cost per load / 6 ton limit) 410.80 $ 304.87 $ 715.67 $ Rolloff Box - 30 cubic yard - Organics
(cost per load / 6 ton limit) 311.00 $ 1,239.85 $ 1,550.85 $ Rolloff Box - 30 cubic yard Compactor - Organics
(cost per load / 8 ton limit) 454.92 $ 1,653.14 $ 2,108.06 $
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
OTHER COMMERCIAL SERVICES
Commercial Recycling/Organics Cart Contamination (per occurrence) 66.95 $ 0.12 $ 67.07 $ Commercial Recycling/Organics Bin Contamination (per occurrence 133.91 $ 0.23 $ 134.14 $ Scout or push out service (monthly)
Per pickup 75.51 $ (0.00) $ 75.51 $
Bin exchange in excess of one per calendar year (any size) $ (0.00) 106.83 $ 106.83 $ Bin relocation $ (0.00) 71.24 $ 71.24 $
Locking bin installation (one time fee) $ (0.00) 123.92 $ 123.92 $ Locking bin surcharge (per pickup frequency) $ (0.00) 2.90 $ 2.90 $ Bin redelivery fee (removed for non-payment) $ (0.00) 106.83 $ 106.83 $ Special access required (key or code) $ (0.00) 14.52 $ 14.52 $ Overload surcharge (per occurrence) $ 0.08 52.58 $ 52.66 $ Container steam cleaning (in excess of one per calendar year) $ (0.00) 142.44 $ 142.44 $
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
OTHER ROLLOFF/INDUSTRIAL SERVICES
Per ton overload surcharge - Refuse $ 67.09 9.25 $ 76.34 $ Per ton overload surcharge - Greenwaste $ 67.09 10.26 $ 77.35 $ Per ton overload surcharge - Organics $ (0.00) 140.92 $ 140.92 $ Relocation fee $ - 71.24 $ 71.24 $
Stand-by-rate (hourly) - 2 hour minimum $ - 106.83 $ 106.83 $ Dry run/trip charge $ - 71.24 $ 71.24 $
Turn around surcharge $ - 14.52 $ 14.52 $
Saturday collection surcharge (per haul) $ - 44.16 $ 44.16 $ Heavy truck service (per haul) $ - 498.62 $ 498.62 $
Mandatory required signature surcharge $ - 7.28 $ 7.28 $ Steam cleaning (in excess on one (1) free per calendar year) $ - 142.44 $ 142.44 $
BULKY ITEM COLLECTION
Single Family Dwellings (three (3) pickups per calendar year/10 items per pickup) $ - - $ - $
Single Family Dwellings - Additional pick ups above calendar maximum (up to 2 items) $ - 59.82 $ 59.82 $
Single Family Dwellings - Additional items above max number of items (per item) $ - 8.56 $ 8.56 $
Single Family Dwellings Additional Gas Recovery Fee (per item) (does not apply to 3 free pickups) $ - 59.82 $ 59.82 $
$ - - $
Commercial & Multi-Family Dwellings (up to 2 items) 64.12 $ - $ 64.12 $ Commercial & Multi-Family Dwellings - Additional items above 2 (per item) $ - 8.56 $ 8.56 $
Commercial & Multi-Family Dwellings Additional Gas Recovery Charge (per item) $ - 59.82 $ 59.82 $
TEMPORARY SERVICES
Temporary Residential Bin - 3 cubic yard (3 day rental) Initial 3 day rental $ 23.85 102.49 $ 126.34 $
Each additional day 9.66 $ - $ 9.66 $
Temporary Residential Bin (non-profit organizations ) - 3 cubic yard (3 day rental)
Initial 3 day rental 95.70 $ 22.29 $ 117.99 $
Each additional day 9.66 $ - $ 9.66 $
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
Temporary Construction Bin - 3 cubic yard
1 pickup per week 226.15 $ 52.62 $ 278.77 $
2 pickups per week 334.57 $ 105.06 $ 439.63 $
3 pickups per week 443.02 $ 157.52 $ 600.54 $
4 pickups per week 551.48 $ 209.87 $ 761.35 $
5 pickups per week 659.86 $ 262.31 $ 922.17 $
6 pickups per week 768.31 $ 314.75 $ 1,083.06 $
Extra pickups 60.20 $ 52.35 $ 112.55 $
Service Disposal Total
New Rates
EXHIBIT "A"
CITY OF YORBA LINDA
MAXIMUM RATES FOR SOLID WASTE HANDLING SERVICES
July 1, 2026
Temporary Construction Bin - 3 cubic yard
On-call service (each pickup) 84.50 $ 19.17 $ 103.67 $
Temporary Rolloff Box - 15 cubic yard - Demolition
(cost per load / 8 ton limit) 510.59 $ 428.16 $ 938.75 $ Temporary Rolloff Box - 30 cubic yard - Greenwaste
(cost per load / 6 ton limit) 410.80 $ 304.87 $ 715.67 $ Temporary Rolloff Box - 30 cubic yard - Organics 304.71 $ 1,239.85 $ 1,544.56 $ (cost per load / 6 ton limit)
Rolloff Boxes Extra Day Charges After 5 Days (per day charge) $ - 16.97 $ 16.97 $ Temporary Rolloff Box - 30 cubic yard
(cost per load / 8 ton limit) 422.90 $ 386.53 $ 809.43 $ Temporary Rolloff Box - 15 cubic yard - Clean Concrete/Inert (cost per load / 8 ton limit) 438.97 $ 315.67 $ 754.64 $ Temporary Rolloff Box - 30 cubic yard - Clean Wood/Drywall (cost per load / 8 ton limit) 395.27 $ 284.25 $ 679.52 $ Temporary Rolloff Box - 30 cubic yard - Metal
(flat rate per haul / 8 ton limit) 111.21 $ 0.20 $ 111.41 $ Temporary Rolloff Box - 30 cubic yard - Cardboard
(flat rate per haul / 8 ton limit) 177.97 $ 0.32 $ 178.29 $
PARKS AND RECREATION DEPARTMENT
DATE: JUNE 16, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE KUDRON, DIRECTOR OF PARKS AND RECREATION
PREPARED BY: BRAD SKEENE, PARKS AND FACILITIES
SUPERINTENDENT
SUBJECT: APPROVE AN AMENDMENT NO. 1 TO THE AGREEMENT WITH KONE INC. FOR ELEVATOR MAINTENANCE
RECOMMENDATION
Approve Amendment No. 1 to the agreement with KONE Inc. for elevator maintenance.
DISCUSSION
The City Council approved an agreement for maintenance of the Yorba Linda Town Center and Public Library elevators with KONE, Inc. in 2023. The agreement provided for a threeyear initial term with two one-year extensions at the City’s option. The recommended amendment is the first extension. There are no other changes to the agreement and sufficient funding is available in the Budget.
KONE, Inc. continues to provide the City with reliable and responsive elevator maintenance services, ensuring minimal downtime and safe operation. KONE’s consistent performance and timely support have contributed to the effective operation of both facilities.
FISCAL IMPACT
The $75,000 cost is included in the FY 2026-27 Budget.
ALTERNATIVES
Do not approve the recommendation and provide alternative direction.
ATTACHMENTS
1. KONE Amendment 1
Amendment
No. 1
AMENDMENT NO. 1
AMENDMENT NO. 1 TO AGREEMENT FOR
YORBA LINDA TOWN CENTER PARKING STRUCTURE
AND YORBA LINDA PUBLIC LIBRARY
ELEVATOR MAINTENANCE
This Amendment No. 1 (“Amendment No.1”) to that certain Yorba Linda Town Center Parking Structure and Yorba Linda Public Library Elevator Maintenance (“Agreement”) made on December 1, 2023, between the City of Yorba Linda (“City”) and KONE, Inc. (“Contractor”), is made and entered into on June 16, 2026:
1. Capitalized terms used but not defined in this Amendment No. 1 shall have the meanings ascribed to them in the Agreement.
2. TERM EXTENSION - Section 3.1.2, “Term” is amended to extend the term of the Agreement from July 1, 2026, to June 30, 2027. Section 3.1.2 is revised to read as follows:
3.1.2 Term. The term of this Agreement shall be from December 1, 2023, to June 30, 2027, unless earlier terminated as provided herein. The City shall have the option to renew this Agreement annually for no more than one additional oneyear term. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.
3. INCREASE IN COMPENSATION - Section 3.3.1, “Compensation” is amended to increase compensation by Seventy Five Thousand Dollars ($75,000) for the period July 1, 2026 to June 30, 2027, increasing the total not-to-exceed compensation under this Agreement to One Hundred Fifty Thousand Dollars ($150,000) from December 1, 2023, to June 30, 2027, unless otherwise approved in writing by the City. Section 3.3.1 is revised to read as follows:
3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference.
The total compensation shall not exceed One Hundred Fifty Thousand Dollars ($150,000) without written approval of the City's Parks and Recreation Director.
Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. (Signatures on Following Page)
AMENDMENT NO. 1
CITY OF YORBA LINDA KONE, INC.
By: By:
Carlos Rodriguez
Mayor Name:
Title:
By: ___________________________
Donna Mullally
Finance Director
Attest:
[If Corporation, TWO SIGNATURES, President OR
Vice President AND Secretary, AND CORPORATE
SEAL OF CONTRACTOR REQUIRED]
By:
Marcia Brown By:
City Clerk
Name:
Title:
Approved as to Form:
By:
Rutan & Tucker, LLP
City Attorney
PARKS AND RECREATION DEPARTMENT
DATE: JUNE 16, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE KUDRON, DIRECTOR OF PARKS AND RECREATION
PREPARED BY: BRAD SKEENE, PARKS AND FACILITIES
SUPERINTENDENT
SUBJECT: APPROVE AMENDMENT NO.1 TO THE AGREEMENT WITH MERCHANTS LANDSCAPE SERVICES INC.
RECOMMENDATION
Approve Amendment No. 1 to the agreement with Merchants Landscape Services, Inc.
DISCUSSION
The City Council approved an agreement with Merchants Landscaping Service in 2023 for landscape maintenances. The agreement provided for a three-year initial term with two oneyear extensions at the City’s option. The recommended amendment is the first extension.
The extension provides the contractor with a 3.16 percent CPI increase to $238,300. There are no other changes to the agreement, and sufficient funding is available in the Budget Merchants Landscape Service Inc. continues to deliver dependable, high-quality, and responsive landscape maintenance services to parks throughout the City.
FISCAL IMPACT
The $238,300 cost is included in the FY 2026-27 Budget.
ALTERNATIVES
Do not approve the recommendation and provide alternative direction.
ATTACHMENTS
1. Merchants Landscape Services Inc. Amendment 1
CITY of YORBA LINDA
AMENDMENT NO. 1 TO AGREEMENT FOR
PARK TURF AND LANDSCAPE MAINTENANCE SERVICES
This is Amendment No. 1 ("Amendment No.1 ") to that certain Park Turf And Landscape Maintenance Services ("Agreement") made on July 1, 2023, between the City of Yorba Linda ("City") and Merchants Landscape Services, Inc. ("Contractor"), which this Amendment No. 1 is made and entered into on June 16, 2026, to extend the term to June 30, 2027:
1. Capitalized terms used but not defined in this Amendment No. 1 shall have the meanings ascribed to them in the Agreement.
2. Section 3.1.2, 'Term" is amended to read as Follows: 3.1.2 Term. The term of this Agreement shall be from July 1, 2023, to June 30, 2027, unless earlier terminated as provided herein. The City shall have the option to renew this Agreement annually for no more than one additional one-year term. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.
3.1.2 Term. The term of this Agreement shall be from July 1, 2023, to June 30, 2027, unless earlier terminated as provided herein. The City shall have the option to renew this Agreement annually for no more than one additional one-year term. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.
3. Section 3.3.1, "Compensation" is amended to read as follows: The total compensation for services pursuant to this Amendment No. 1 shall be increased by an amount of Two Hundred Thirty Eight Thousand Three Hundred Dollars ($238,300), increasing the total not to exceed Agreement compensation to Nine Hundred Thirty One Thousand Three Hundred Dollars ($931,300) from July 1, 2023, to June 30, 2027, unless otherwise approved in writing by the City.
3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference.
The total compensation shall not exceed Nine Hundred Thirty One Thousand Three Hundred Dollars ($931,300) without written approval of the City's Parks and Recreation Director. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
(Signatures on Following Page)
CITY of YORBA LINDA AMENDMENT NO. 1
FINANCE DEPARTMENT
DATE: JUNE 16, 2026
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DONNA MULLALLY, FINANCE DIRECTOR
SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2024-25 ANNUAL
COMPREHENSIVE FINANCIAL REPORT
RECOMMENDATION
Receive and file the Annual Comprehensive Financial Report and related reports for Fiscal Year 2024-25.
SUMMARY
The Basic Financial Statements contained in the Annual Comprehensive Financial Report (ACFR) have been audited by the firm of Rogers, Anderson, Malody & Scott, LLP. Based on the audit results, the City received an unmodified opinion, also known as a “clean” opinion.
DISCUSSION
The Basic Financial Statements contained in the Annual Comprehensive Financial Report have been audited and the following reports prepared by the firm of Rogers, Anderson, Malody, & Scott. The activities of the City’s Municipal Financing Authority, Housing Authority, and Successor Agency to the former Redevelopment Agency are included in the scope of the audit and presentation in the ACFR. Due to unforeseen circumstances which required Finance to temporarily reassign responsibilities, the audit fieldwork was postponed, causing the final report to be delayed.
Annual Comprehensive Financial Report
The ACFR is comprised of three major sections: Introductory, Financial, and Statistical.
Each of these sections contains required information in a prescribed format.
FISCAL YEAR 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT P a g e | 2
The Introductory Section contains a transmittal letter, a directory of City officials, and an organizational chart.
The Financial Section incorporates information on the financial condition of the City and includes all the information in the ACFR which is part of the scope of the audit, as well as required supplementary information. The Financial Section includes the basic financial statements, note disclosures and a management discussion and analysis narrative. The government-wide financial statements present a broad overview of the City’s financial information on a full accrual basis, similar to the private sector, which provides a long-term perspective on the City's finances. The fund financial statements are presented on a modified accrual basis focusing on a short-term view of the City’s current and available financial resources.
The Statistical Section includes a variety of financial and demographic information related to financial trends, revenue and debt capacity, and operating and economic data.
Audit Communication Letter
The Audit Communication Letter is required communication from the independent auditors to the City Council regarding the audit. The letter discusses accounting estimates, significant accounting policies, difficulties encountered during the audit, corrected and uncorrected misstatements, and any significant issues that arose during the audit process. The communication is intended to assist the City Council in its oversight of the City's financial reporting process.
Independent Auditors' Report on Internal Control
During the annual audit, the auditors review and observe the City's internal controls and operations to determine if there are any deficiencies. No material weaknesses were identified.
Independent Accountants' Report on Agreed-Upon Procedures Applied to the City's Appropriations Limit
All governments in California are required to have specific review procedures performed by independent accountants on the annual appropriation limit. There were no exceptions or findings related to this review.
FISCAL IMPACT
None.
FISCAL YEAR 2024-25 ANNUAL COMPREHENSIVE FINANCIAL REPORT P a g e | 3
ATTACHMENTS
1. FY 24-25 Annual Comprehensive Financial Report
2. FY 24-25 Audit Communication Letter
3. FY 24-25 Independent Auditors’ Report on Internal Control
4. FY 24-25 Report on the City’s Appropriation Limit (Gann Limit)
Annual Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 2025
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CITY OF YORBA LINDA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE
FISCAL YEAR ENDED JUNE 30, 2025
City Council
Carlos Rodriguez
Mayor
Peggy Huang Tara Campbell
Mayor Pro Tem Council Member
Janice Lim Shivinder Singh
Council Member Council Member
Prepared by the Finance Department
4845 Casa Loma Avenue
Yorba Linda, CA 92886
(714) 961-7140
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INTRODUCTORY SECTION
City of Yorba Linda
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal ................................................................................................................ i City Officials and Organizational Chart ................................................................................. vii GFOA Award Certificate ........................................................................................................ viii FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................ 1 Management’s Discussion and Analysis (Required Supplementary Information - Unaudited) ................................................................................................... 5
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ......................................................................................... 18 Statement of Activities .............................................................................................. 19 Fund Financial Statements:
Balance Sheet – Governmental Funds .................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................... 22 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .......................................................................................... 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............. 25 Statement of Fund Net Position – Proprietary Funds ............................................... 26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ............................................................................................... 27 Statement of Cash Flows – Proprietary Funds ......................................................... 28 Statement of Fiduciary Net Position – Fiduciary Funds …..…………………………...29 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ........................ 30 Notes to the Basic Financial Statements ....................................................................... 31 Required Supplementary Information (Unaudited)
Budgetary Comparison Schedules:
General Fund ..................................................................................................... 89 Affordable Housing Special Revenue Fund ....................................................... 90 Miscellaneous Grants Special Revenue Fund ................................................... 91 Public Library Special Revenue Fund ............................................................... 92 Landscape Maintenance Assessment District Special Revenue Fund .............. 93 Infrastructure Assets Reported Using the Modified Approach ...................................... 94
City of Yorba Linda
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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 .......................................................................................................... 96 Schedule of Pension Contributions – Last 10 Years ...................................................... 99 Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years .. 101 Schedule of OPEB Contributions – Last 10 Years ....................................................... 103 Notes to Required Supplementary Information ............................................................ 105 Other Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Improvements Capital Projects Fund ........................................... 106 Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds ................................ 109 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ........................................... 113 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Special Revenue Funds:
Gas Tax ............................................................................................................ 117 Traffic Safety .................................................................................................... 118 CDBG Grant ..................................................................................................... 119 Citizens Option for Public Safety ...................................................................... 120 AQMD ............................................................................................................... 121 Measure M2 ..................................................................................................... 122 SB-2 ................................................................................................................. 123 Mortgage Assistance Program ......................................................................... 124 PEG .................................................................................................................. 125 Road Maintenance and Rehabilitation .............................................................. 126 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects Funds:
Park in Lieu ....................................................................................................... 127 Lighting and Signal Project Improvements ........................................................ 128 Master Plan of Drainage ................................................................................... 129 Traffic Signal Improvements ............................................................................. 130
City of Yorba Linda
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
TABLE OF CONTENTS (Continued)
STATISTICAL SECTION:
Net Position by Component ............................................................................................... 132 Changes in Net Position ..................................................................................................... 134 Fund Balances of Governmental Funds ............................................................................. 138 Changes in Fund Balances of Governmental Funds ......................................................... 140 Assessed Value and Estimated Actual Value of Taxable Property .................................... 142 Direct and Overlapping Property Tax Rates ...................................................................... 143 Principal Property Taxpayers ............................................................................................. 144 Property Tax Levies and Collections .................................................................................. 145 Ratios of Outstanding Debt by Type .................................................................................. 146 Ratios of General Bonded Debt Outstanding ..................................................................... 147 Direct and Overlapping Debt .............................................................................................. 148 Legal Debt Margin Information ........................................................................................... 149 Demographic and Economic Statistics ............................................................................... 150 Principal Employers ........................................................................................................... 151 Full-Time Equivalent City Government Employees by Function ........................................ 152 Operating Indicators by Function ........................................................................................ 153 Capital Asset Statistics by Function/Program .................................................................... 154
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June 2, 2026
Honorable Mayor, Members of the City Council, and Residents 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, 2025.
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, 2025. 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 is located in northeast Orange County, approximately 40 miles south of Los Angeles. With a population of 66,267 and covering 20 square miles, Yorba Linda is a suburban community characterized by residential family neighborhoods, parklands and open space, multi-use trails, and key commercial centers. The City owns and operates Black Gold Golf Club, the award-winning Yorba Linda Public Library, and the Yorba Linda Cultural Arts Center. Neighboring communities include Anaheim, Brea, Placentia, and Corona. Among the attractions located in the City is the Richard Nixon Presidential Library.
-i- Page 481 of 989
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 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, while 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. -ii- Page 482 of 989
Economic Conditions and Outlook
Fiscal Year 2024-25 reflected steady economic conditions shaped by inflationary pressures, elevated household costs, e-commerce and shifts in consumer behavior.
Despite these headwinds, the City’s overall fiscal position remains strong. Property tax revenues grew on the strength of rising assessed valuations, while sales tax receipts experienced slight declines as e-commerce, high interest rates, and constrained discretionary spending affected several retail categories. The City continues to manage resources prudently, maintain a balanced operating budget, and preserve one of the most robust General Fund reserves in Orange County.
Property Tax
Assessed property values in Yorba Linda continued to show strong growth in Fiscal Year 2024-25, driven by development and rising home values. Taxable assessed valuation increased almost $1 billion, or 5.0 percent, to $20.4 billion, compared to 5.3 percent growth in the prior year. This trend strengthens the City’s property tax base and helps stabilize revenues during market fluctuations. Secured property tax collections totaled $14.2 million in Fiscal Year 2024-25, and the City estimates secured property tax revenues of $15.1 million for Fiscal Year 2025-26, a 4.4 percent increase. -iii- Page 483 of 989
Sales Tax
The City’s sales tax revenue for FY 2024-25 was down slightly (-0.35%) from FY 2023- 24 as e-commerce reduced local point-of-sale receipts, and high interest rates, the closure of several large retailers, fluctuating gasoline prices, and rising household costs constrained consumer spending. General consumer goods reported sluggish sales as consumer spending shifted focus to services and value. Business industry sector was negatively impacted by the lingering impact of tariffs. 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 strong reserves.
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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, 2025, the City’s General Fund had budget reserves of approximately $47.1 million. Of this amount, $23.8 million is committed to operating reserves for emergencies and economic contingencies. An amount of $400,000 is committed to special reserves for facilities, road maintenance, selfinsurance, and other long-term needs. Assigned fund balance amounts to approximately $2.4 million which is for budget carryovers and encumbrances. Non-spendable fund balance of approximately $119,379 is dedicated to prepaid costs. The remainder of fund balance reserves, amounting to approximately $327,321, is unassigned and available for any purpose at the direction of the City Council. This level of General Fund reserves is
65.2% of budgeted General Fund expenditures and well within the City Council Policy.
Major Initiatives
Shop Dine Support Yorba Linda
The “Shop Dine Support Yorba Linda” campaign continued the partnership between the City and the Yorba Linda Chamber of Commerce to strengthen local businesses and deepen community engagement. The campaign links residents and visitors to an interactive business directory, making it easy to discover Yorba Linda’s diverse retail and service offerings.
Old Towne/Main Street Revitalization
The City is advancing revitalization efforts in the Old Towne business district by enhancing the Main Street corridor’s character, particularly during evenings and seasonal events.
Local merchants support these improvements by investing in enhanced holiday décor, storefront upgrades, and other beautification projects that enriched the visitor experience.
City Council Economic Development Workshop
On June 24, 2025, the City Council held an Economic Development Workshop to review current local economic conditions, highlight ongoing initiatives, and identify strategic priorities to support a thriving business environment. Councilmembers and staff aligned on goals related to business retention, commercial revitalization, and long-term economic -v- Page 485 of 989
sustainability. Following the workshop, the City began developing targeted work plans, strengthening stakeholder partnerships, and enhancing the City’s economic development program.
Acknowledgements
The preparation and publication of this report would not have been possible without the dedication, professionalism, and teamwork of the entire 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,
Peter Grant Donna Mullally
City Manager Finance Director
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City of Yorba Linda
City Officials and Organizational Chart
-viiLEGISLATIVE OFFICIALS
Carlos Rodriguez .................................................................................................................. Mayor Peggy Huang ......................................................................................................... Mayor Pro Tem Tara Campbell ...................................................................................................... Council Member Janice Lim ............................................................................................................. Council Member Shivinder Singh ..................................................................................................... Council Member
APPOINTED CITY OFFICIALS
Peter Grant ............................................................................................................... City Manager Todd Litfin ................................................................................................................. City Attorney
CITY OFFICIALS
Nate Farnsworth ...................................................................... Community Development Director Donna Mullally ........................................................................... 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
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Yorba Linda
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
FINANCIAL SECTION
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
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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 City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’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 businesstype activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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.
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences and No. 102, Certain Risk Disclosures. Our opinions are not modified with respect to this matter.
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Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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 City’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 City’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.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other 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 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 City’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 comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 2, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino, California
June 2, 2026
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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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, 2025. 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, 2025 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 $577,037,304. Total net position increased by $9,632,996 or 1.7 percent primarily due to the recognition of previously unavailable grant revenue related to prior year expenditures, increased investment income due to higher market returns, and increased property tax revenues.
• The City’s Net Pension Liability decreased by $1,796,951, or 6.9% and Net Other PostEmployment Benefit (OPEB) Liabilities increased by $1,499,108, or 8.7%, 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 $1,410,291 or 12.1 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 decreased by $2,014,644 or 28.1 percent primarily due to changes in balances in accordance with GASB 87, Leases.
• Program revenues decreased by $2,548,877, or 6.3%, primarily due to decreased grant revenues for capital projects, Additionally, revenues from Black Gold Golf Club have increased by $505,300 or 4.8%, 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 $1,429,608 or 1.8%, primarily due to: increased operating costs including wage and benefit increases and contract cost increase. • Total fund balance of the General Fund is $47,171,474, compared to $44,233,621 in the prior fiscal year, a $2,937,853, or 6.6% increase due to the planned use of reserves for infrastructure improvement projects such as the APPP Street Improvement Program. At the end of the current fiscal year, unassigned fund balance for the General Fund was $327,321 or 0.7% of the amount of General Fund operating expenditure. The General Fund unassigned balance of $327,321 is in addition to $23,819,889 operating reserve established by City Council resolution.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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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 details 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 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.
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.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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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 non-major 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 City’s two types of fiduciary funds are a custodial fund and a private-purpose trust fund. The custodial fund consists of deposits from developers and builders related to development projects. The private-purpose trust fund is used to account for the activities of the Successor Agency to the former Yorba Linda Redevelopment Agency. The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements. The notes provide additional information that is essential to acquire a full understanding of the data provided in the government-wide and fund financial
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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statements. The notes to the basic financial statements can be found in the financial section of the report immediately following the basic fiduciary fund financial statements.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. The Required Supplementary Information section includes 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 $577,037,304 at the close of 2025.
CITY OF YORBA LINDA
Statement of Net Position
Governmental Activities Business-type Activities Total
2025 2024 2025 2024 2025 2024
Current and other assets 146,467,785 $ 138,973,562 $ 3,314,660 $ 2,159,813 $ 149,782,445 $ 141,133,375 $ Capital assets, net 468,057,159 467,348,312 21,895,133 22,678,370 489,952,292 490,026,682 Total assets 614,524,944 606,321,874 25,209,793 24,838,183 639,734,737 631,160,057 Deferred outflows of resources 10,271,711 11,682,002 - - 10,271,711 11,682,002 Current liabilities 6,960,704 6,122,930 2,842,451 2,548,338 9,803,155 8,671,268 Noncurrent liabilities
Long-term liabilities 2,655,261 2,866,462 382,687 633,679 3,037,948 3,500,141 Lease Revenue Financings 12,220,577 13,046,391 - - 12,220,577 13,046,391 Net OPEB liability 18,667,060 17,167,952 - - 18,667,060 17,167,952 Net pension liability 24,087,291 25,884,242 - - 24,087,291 25,884,242 Total liabilities 64,590,893 65,087,977 3,225,138 3,182,017 67,816,031 68,269,994 Deferred inflows of resources 5,153,113 7,167,757 - - 5,153,113 7,167,757 Net position:
Net investment in capital assets 455,836,582 454,301,921 21,585,781 22,118,026 477,422,363 476,419,947 Restricted 89,641,543 83,179,514 - - 89,641,543 83,179,514 Unrestricted 9,465,380 8,266,707 398,874 (461,860) 9,864,254 7,804,847 Total net position 554,943,505 $ 545,748,142 $ 21,984,655 $ 21,656,166 $ 576,928,160 $ 567,404,308 $ The largest portion of the City’s net position (82.7%) 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, 2025
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The portion of net position invested in capital assets increased by $1,002,416, or 0.2 percent, versus the prior year, which was primarily due to the addition of various infrastructure projects.
An additional portion of the City’s net position, $89,641,543, 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 $9,973,398.
The City’s net position increased by $9,632,996, or 1.7 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, 2025, 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
2025 2024 2025 2024 2025 2024
Revenues
Program revenues:
Charges for services 16,330,377 $ 13,832,811 $ 11,035,753 $ 10,530,453 $ 27,366,130 $ 24,363,264 $ Operating contributions and grants 3,053,286 4,009,219 - 3,053,286 - 4,009,219 Capital contributions and grants 7,606,390 12,202,200 - 7,606,390 - 12,202,200 General revenues:
Taxes:
Property taxes, levied for general purpose 35,710,412 34,245,240 - 35,710,412 - 34,245,240 Sales taxes 8,425,635 8,396,106 - 8,425,635 - 8,396,106 Franchise taxes 2,537,767 2,547,619 - 2,537,767 - 2,547,619 Transient occupancy taxes 513,544 554,637 - 513,544 - 554,637 Business license taxes 396,985 441,623 - 396,985 - 441,623 Other taxes 707,446 595,756 - 707,446 - 595,756
Motor vehicle in lieu - unrestricted 225,701 97,804 - 225,701 - 97,804 Investment income 4,612,488 4,100,541 174,664 77,460 4,787,152 4,178,001 Gain on sale of property (1,633) 315,343 - - (1,633) 315,343 Other 1,202,093 1,632,854 - 1,202,093 - 1,632,854
Transfers 82,150 15,455 (82,150) (15,455) - -
Total revenues 81,402,641 82,987,208 11,128,267 10,592,458 92,530,908 93,579,666 Expenses
General government 13,013,478 13,665,478 - 13,013,478 - 13,665,478 Public safety 15,067,594 14,209,525 - 15,067,594 - 14,209,525 Community development 6,134,207 4,645,214 - 6,134,207 - 4,645,214 Parks and recreation 14,240,029 16,229,130 - 14,240,029 - 16,229,130 Library 5,776,172 6,321,929 - 5,776,172 - 6,321,929
Public works 17,462,660 16,128,067 - 17,462,660 - 16,128,067 Interest on long-term debt 513,138 538,743 - 513,138 - 538,743 Golf - - 10,799,778 9,839,362 10,799,778 9,839,362
Total expenses 72,207,278 71,738,086 10,799,778 9,839,362 83,007,056 81,577,448 Change in net position 9,195,363 11,249,122 328,489 753,096 9,523,852 12,002,218 Net position, beginning 545,748,142 534,499,020 21,656,166 20,903,070 567,404,308 555,402,090 Net position, ending $ 554,943,505 $ 545,748,142 $ 21,984,655 $ 21,656,166 $ 576,928,160 $ 567,404,308
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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Governmental Activities. The cost of all governmental activities this year was $72,207,278.
However, as shown in the Statement of Activities, the amount that taxpayers ultimately financed for these activities was $45,217,225, as costs of $16,330,377 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 $3,053,286, and capital grants and contributions of $7,606,390. The City’s total governmental program revenues were $26,990,053.
The City paid for the remaining “public benefit” portion of governmental activities with $54,521,732 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 $9,304,507, or 1.7%, compared to the prior year increase of $11,249,122, or 2.1%.
Revenues – While variances between years exist for each revenue category, the overall net decrease was $1,475,423, or 1.8% from prior year. Property tax revenues increased by $1,465,172, or 4.3 percent, due to continued growth in assessed valuation and residential development in the City. Investment Income increased by $511,947, or 12.5 percent, due to an increase in investment earnings as well as a fair value adjustment to the City’s investments, which generated unrealized gains in Fiscal Year 2024/25. Capital Grants and Contributions decreased by $4,595,810 or 37.7 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 prior year.
Expenses – The overall net increase in governmental expenses for the City from prior year was $469,192, or 0.7 percent. As previously discussed, this increase was largely due to costs incurred to begin implementation of 1) an increase in the administrative charge to other City funds; 2) increases to the Orange County Sheriff’s Department contract for law enforcement services; and 3) 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 $328,489 or 1.5 percent. Charges for Services revenue increased by $505,300, or 4.8 percent, due to increased golf participation, 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 $960,416, or 9.8 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 in 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, 2025
-11-
$-
$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 Program Revenues - Governmental Activities 2024 Expenses 2025 Expenses 2024 Program Revenues 2025 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, 2025 June 30, 2024
General Fund $ 47,171,474 $ 44,233,621
Affordable Housing Fund 53,776,144 52,916,935
Miscellaneous Grants Fund (1,484,315) (4,751,402)
Public Library Fund 8,810,298 7,184,980
Landscape Maintenance Assessment District Fund 11,651,993 9,194,574 Capital Improvements Fund - -
$ 119,925,594 $ 108,778,708
Governmental Funds - Fund Balance
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 $47,171,474 which is an increase of $2,937,853 or 6.6% from prior year. This increase in fund balance is due to the previously discussed planned use of reserves for infrastructure projects, which was partially offset by a fair value adjustment for unrealized gains of $821,600, which will be reversed in Fiscal Year 2025/26. Unassigned fund balance of the General Fund was $327,321. 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 0.7% of the amount of General Fund operating expenditures and is in addition to $23,819,889 operating reserve established by City Council resolution.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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The Affordable Housing Fund Balance increased by $859,209, or 1.6 percent due to investment revenue earned during the fiscal year.
The Miscellaneous Grants Fund Balance increased by $3,267,087, or 68.8 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 $1,625,318, or 22.6 percent primarily due to continued growth in property tax revenues and savings, higher investment revenues partially offset by a fair value adjustment to be reversed in the following fiscal year.
The Landscape Maintenance Assessment District Fund Balance increased by $2,457,419, or 26.7 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, 2025, totaled $398,874, a reduction in the negative unrestricted net position in the amount of $860,734. This change is due to the reduction of capital and interfund debt as the loans and advances are repaid as scheduled.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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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 2024/25.
Original Final Actual Variance w/
Budget Budget Amounts Final Budget
Revenues
Taxes $ 38,569,215 $ 38,361,756 $ 38,572,199 $ 210,443
Other revenues 9,466,216 11,574,831 12,009,476 434,645
Total revenues 48,035,431 49,936,587 50,581,675 645,088 Expenditures
Administration 9,168,881 10,432,682 9,838,302 594,380
City Attorney 650,000 650,000 401,795 248,205
Finance 1,404,221 1,433,502 1,330,726 102,776
Public safety 15,299,177 15,317,566 15,001,761 315,805
Community development 3,719,154 3,816,005 3,376,048 439,957 Parks and recreation 9,943,004 10,292,197 9,960,197 332,000 Public works 6,067,266 6,354,986 5,099,856 1,255,130
Capital outlay 618,600 629,467 537,240 92,227
Total expenditures 46,870,303 48,926,405 45,545,925 3,380,480 Excess of revenues over expenditures 1,165,128 1,010,182 5,035,750 4,025,568 Other financing sources
Transfers in 229,000 511,008 264,609 (246,399)
Transfers out (2,088,066) (5,677,356) (2,471,650) 3,205,706 Total other financing sources (1,849,066) (5,156,348) (2,097,897) 3,058,451 Net change in fund balances (683,938) (4,146,166) 2,937,853 7,084,019 Fund balance at beginning of fiscal year 44,233,621 44,233,621 44,233,621 - Fund balance at end of fiscal year $ 43,549,683 $ 40,087,455 $ 47,171,474 $ 7,084,019
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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General Fund Budgetary Highlights
Changes to Original Budget
Comparing the Fiscal Year 2024/25 General Fund Original (i.e. Adopted) Budget expenditures and transfers out amount of $48,958,369 to the final budgeted amount of $54,603,761 shows a net increase of $5,645,392, or 11.5 percent. This overall increase is primarily due to budget carryovers in the amount of $956,757 and appropriation to fund additional payments to CalPERS and the City’s Other Post-Employment Benefits Trust in the amounts of $166,800 and $417,000, respectively.
Final budgeted revenues and transfers-in for the General Fund increased $2,183,164 or 4.5 percent from the original (adopted) budget for the Fiscal Year ended June 30, 2025. 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 $744,232 for the Fiscal Year ended June 30, 2025. 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 fair value adjustment to the City’s investments totaling $821,600 required by the Government Accounting Standards Board which will be reversed in Fiscal Year 2025/26.
General Fund expenditures and transfers-out were $6,586,186 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 not fully expended during the fiscal year.
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, 2025, amounts to $489,952,292 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, infrastructure and construction in progress. The total decrease in capital assets for the current fiscal year was $74,390. This decrease was primarily due to a modest increase in streets projects completed and other in-progress infrastructure projects offset by depreciation expense.
City of Yorba Linda
Management’s Discussion and Analysis (Required Supplementary InformationUnaudited) For the Fiscal Year Ended June 30, 2025
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The table below summaries the current capital assets held by the City as of June 30, 2025, as compared to the prior fiscal year.
City of Yorba Linda's Capital Assets (net of depreciation) Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
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 5,485,841 12,701,267 - - 5,485,841 12,701,267 Buildings and improvements 91,208,256 94,923,558 7,609,319 8,190,845 98,817,575 103,114,403 Machinery and equipment 3,260,606 3,024,228 1,563,866 1,765,577 4,824,472 4,789,805 Motor vehicles 1,163,677 1,170,327 - - 1,163,677 1,170,327 Other infrastructure 131,632,612 120,083,909 - - 131,632,612 120,083,909 Right-to-use subscriptions 125,340 264,196 - - 125,340 264,196 Totals $ 468,057,159 $ 467,348,312 $ 21,895,133 $ 22,678,370 $ 489,952,292 $ 490,026,682 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 which should take place in 2026. 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 $58,012,876. The following table summarizes the current long-term liabilities of the City as of June 30, 2025, as compared to the prior fiscal year.
City of Yorba Linda's Outstanding Debt
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Net pension liability 24,087,291 $ 25,884,242 $ - $ $ 24,087,291 - $ $ 25,884,242 Other post-employment benefits 18,667,060 17,167,952 - 18,667,060 - 17,167,952 Lease Revenue Financings1 12,126,804 12,821,065 - 12,126,804 - 12,821,065 Subscription liability 93,773 225,326 - - 93,773 225,326 Leases - 382,687 - 633,679 382,687 633,679
Claims and judgments 921,525 1,584,610 - 921,525 - 1,584,610 Compensated absences 1,733,736 1,281,852 - 1,733,736 - 1,281,852 Total Long-Term Liabilities 57,630,189 $ $ 58,965,047 $ 382,687 $ 633,679 $ 58,012,876 $ 59,598,726 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, 2025
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At the end of Fiscal Year 2024/25, the City’s long-term liabilities were primarily comprised of a net pension liability of $24,087,291 and a net OPEB obligation related to medical insurance provided to retirees of $18,667,060. The pension liability decreased 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, increase 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.
Additional discretionary payments have been made in each of the prior eight fiscal years, with an additional contribution of $700,000 approved by City Council for the Fiscal Year 2025/26. 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 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 outstanding tax allocation bonds, 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, 2025 was $382,687.
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 increase of $451,884 in the compensated absences liability is the result of routine changes to accrued leave balances. The claims and judgments liability decreased $663,085 due to decreased 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 during the period 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, 2025
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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 sources 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 target increases in service levels and program-related spending. The 2025- 27 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.
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BASIC FINANCIAL STATEMENTS
City of Yorba Linda
Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -18-
Primary Government
Governmental Business-Type
Activities Activities Total
Assets:
Pooled cash and investments 83,073,450 $ 3,860,644 $ 86,934,094 $ Receivables:
Accounts 1,999 2,978,212 2,980,211
Taxes 333,222 - 333,222
Notes and loans 48,273,701 - 48,273,701
Accrued interest 406,327 - 406,327
Leases 1,250,882 1,250,882
Internal balances 820,000 (820,000) -
Prepaid costs 125,851 - 125,851
Due from other governments 6,605,107 - 6,605,107
Inventories - 272,017 272,017
Land held for resale 2,600,000 - 2,600,000
Restricted Asset:
Cash and investments with fiscal agents 1,033 - 1,033
Capital assets, not being depreciated 240,666,668 12,721,948 253,388,616 Capital assets, net of accumulated depreciation 227,390,491 9,173,185 236,563,676 Total assets 614,524,944 25,209,793 639,734,737
Deferred outflows of resources:
Pension related 5,554,465 - 5,554,465
OPEB related 4,717,246 - 4,717,246
Total deferred outflows of resources 10,271,711 - 10,271,711 Liabilities:
Accounts payable 6,139,239 27,616 6,166,855
Accrued liabilities 739,016 2,497,401 3,236,417
Accrued interest payable 82,449 - 82,449
Unearned revenue - 307,434 307,434
Deposits payable - 10,000 10,000
Noncurrent liabilities:
Due within one year
Long term liabilities 776,670 254,291 1,030,961
Claims and judgements 256,012 - 256,012
Compensated absences 856,245 - 856,245
Due in more than one year
Long term liabilities 11,443,907 128,396 11,572,303
Claims and judgements 665,513 - 665,513
Compensated absences 877,491 - 877,491
Net pension liability 24,087,291 - 24,087,291
Net OPEB liability 18,667,060 - 18,667,060
Total liabilities 64,590,893 3,225,138 67,816,031
Deferred inflows of resources:
Leases 1,139,398 - 1,139,398
Pension related 80,236 - 80,236
OPEB related 3,933,479 - 3,933,479
Total deferred inflows of resources 5,153,113 - 5,153,113 Net position:
Net investment in capital assets 455,836,582 21,585,781 477,422,363 Restricted for:
General government 404,199 - 404,199
Parks and recreation 1,550,030 - 1,550,030
Public works 25,134,044 - 25,134,044
Library 8,686,926 - 8,686,926
Low and moderate housing 53,866,344 - 53,866,344
Unrestricted 9,465,380 398,874 9,864,254
Total net position $ 554,943,505 $ 21,984,655 $ 576,928,160
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City of Yorba Linda
Statement of Activities For the Fiscal Year Ended June 30, 2025 The accompanying notes are an integral part of these financial statements. -19-
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 13,013,478 $ 9,746,309 $ 2,432,174 $ 272,368 $ $ (562,627) $ - $ (562,627)Public safety 15,067,594 111,199 200,769 (14,755,626) - - (14,755,626)Community development 6,134,207 3,273,872 234,348 72,155 (2,553,832) - (2,553,832) Parks and recreation 14,240,029 2,679,717 115,625 42,761 (11,401,926) - (11,401,926) Library 5,776,172 235,190 70,370 - (5,470,612) - (5,470,612) Public works 17,462,660 284,090 - 7,219,106 (9,959,464) - (9,959,464)Interest on long-term debt 513,138 - - - (513,138) - (513,138) Total governmental activities 72,207,278 16,330,377 3,053,286 7,606,390 (45,217,225) - (45,217,225) Business-type activities:
Black Gold Golf Course 10,799,778 11,035,753 - - - 235,975 235,975 Total business-type activities 10,799,778 11,035,753 - - - 235,975 235,975 Total $ 83,007,056 $ 27,366,130 $ 3,053,286 $ 7,606,390 (45,217,225) 235,975 (44,981,250) General revenues:
Taxes:
Property taxes, levied for general purpose 35,710,412 - 35,710,412 Sales taxes 8,425,635 - 8,425,635Franchise taxes 2,537,767 - 2,537,767Transient occupancy taxes 513,544 - 513,544 Business licenses taxes 396,985 - 396,985Other taxes 707,446 - 707,446 Motor vehicle in lieu - unrestricted 225,701 - 225,701
Investment income 4,612,488 174,664 4,787,152
Gain on sale of capital assets (1,633) - (1,633)
Other 1,202,093 - 1,202,093
Transfers 82,150 (82,150) -
Total general revenues and transfers 54,412,588 92,514 54,505,102 Change in net position 9,195,363 328,489 9,523,852
Net position at beginning of fiscal year 545,748,142 21,656,166 567,404,308 Net position at end of fiscal year $ 554,943,505 $ 21,984,655 $ 576,928,160
City of Yorba Linda
Balance Sheet
Governmental Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -20-
Affordable Miscellaneous
General Housing Grants
Assets:
Pooled cash and investments 44,294,967 $ 2,646,564 $ - $ Receivables:
Accounts 1,597,213 314,853 942,089
Taxes 165,092 - -
Notes and loans - 48,273,701 -
Accrued interest 189,035 15,115 -
Leases 1,250,882 - -
Prepaid costs 119,379 - -
Due from other governments 2,043,213 - 3,495,212
Due from other funds 3,877,194 - -
Advances to other funds - - -
Land held for resale - 2,600,000 -
Restricted assets:
Cash and investments with fiscal agents - - -
Total assets $ 53,850,233 53,536,975 $ 4,437,301 $
Liabilities, deferred inflows of resources,
and fund balances:
Liabilities:
Accounts payable 3,891,296 $ 1,934 $ - $
Accrued liabilities 632,883 - -
Due to other funds - - 3,123,315
Total liabilities 1,934 4,524,179 3,123,315
Deferred inflows of resources:
Unavailable revenues 701,924 72,155 2,798,301
Leases 1,139,398 - -
Total deferred inflows of resources 72,155 1,841,322 2,798,301 Fund balances:
Nonspendable:
Prepaid costs 119,379 - -
Restricted for:
General government - - -
Parks and recreation - - -
Public works - - -
Library - - -
Low and moderate housing - 53,776,144 -
Committed:
Operating reserves 23,819,889 - -
Special reserves 400,000 - -
Assigned to:
Year-end market value 821,600 - -
Unfunded liabilities 583,800 - -
Budget carryovers 20,538,097 - -
Parks and recreation 561,388 - -
Unassigned (deficit) - 327,321 (1,484,315)
Total fund balances (deficit) 53,776,144 47,171,474 (1,484,315) Total liabilities, deferred inflows of
resources, and fund balances $ 53,850,233 53,536,975 $ 4,437,301 $ Special Revenue Funds
The accompanying notes are an integral part of these financial statements. -21-
Capital
Projects Fund
Landscape Total
Maintenance Nonmajor Total
Public Assessment Capital Governmental Governmental
Library District Improvements Funds Funds
$ 12,315,851 8,794,432 $ 1,254,775 $ 13,766,861 $ 83,073,450 $ 15,352 80,302 - 28,403 2,978,212
90,724 77,406 - - 333,222
- - - - 48,273,701
40,846 72,922 - 88,409 406,327
- - - - 1,250,882
- 6,472 - - 125,851
- 45,887 - 1,020,795 6,605,107
- - - - 3,877,194
- - - 820,000 820,000
- - - - 2,600,000
1,033 - - - 1,033
$ 12,462,773 9,078,454 $ 1,254,775 $ 15,724,468 $ 150,344,979 $ $ 787,361 187,033 $ 1,254,775 $ 16,840 $ 6,139,239 $
81,123 23,011 - 1,999 739,016
- - - 753,879 3,877,194
810,372 268,156 1,254,775 772,718 10,755,449
408 - - - 3,572,788
- - - - 1,139,398
408 - - - 4,712,186
- 6,472 - - 125,851
- - - 404,199 404,199
- - - 1,550,030 1,550,030
11,651,993 - - 13,482,051 25,134,044
- 8,686,926 - - 8,686,926
- - - 90,200 53,866,344
- - - - 23,819,889
- - - - 400,000
- - - - 821,600
- 116,900 - - 700,700
- - - - 20,538,097
- - - - 561,388
- - - (574,730) (1,731,724)
11,651,993 8,810,298 - 14,951,750 134,877,344
$ 12,462,773 9,078,454 $ 1,254,775 $ 15,724,468 $ 150,344,979 $ Special Revenue Funds
THIS PAGE INTENTIONALLY LEFT BLANK
City of Yorba Linda
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -22-
Fund balances of governmental funds $ 134,877,344
468,057,159
Claims and judgments (921,525) $
Compensated absences (1,733,736)
Long-term debt (12,220,577)
Accrued interest on long-term debt (82,449)
Net OPEB liability (18,667, 060)
Net pension liability (24,087,291)
(57,712,638)
3,572,788
Pension related deferred outflow of resources 5,554,465 OPEB related deferred outflows of resources 4,717,246
Pension related deferred inflows of resources (80,236)
OPEB related deferred inflows of resources (3,933,479)
Net position of governmental activities $ 555,052,649
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, 2025
The accompanying notes are an integral part of these financial statements. -23-
Affordable Miscellaneous
General Housing Grants
Revenues:
Taxes 38,572,199 $ - $ - $
Licenses and permits 1,975,771 - -
Intergovernmental 699,033 2,571,889 4,989,092
Charges for services 5,016,399 - -
Investment income 1,938,543 879,709 -
Fines and forfeitures 64,645 - -
Developer participation - - -
Miscellaneous 2,315,085 - -
Total revenues 3,451,598 50,581,675 4,989,092
Expenditures:
Current:
General government 11,570,823 - -
Public safety 15,001,761 - -
Community development 3,376,048 2,592,389 -
Parks and recreation 9,960,197 - -
Library - - -
Public works 5,099,856 - -
Capital outlay 537,240 - -
Debt service:
Principal retirement - - -
Interest - - -
Total expenditures 2,592,389 45,545,925 -
Excess (deficiency) of revenues
over (under) expenditures 5,035,750 859,209 4,989,092
Other financing sources (uses):
Transfers in 264,609 - -
Transfers out (2,471,650) - (1,722,005)
Proceeds from sale of City property 109,144 - -
Total other financing sources (uses) - (2,097,897) (1,722,005) Net change in fund balances 2,937,853 859,209 3,267,087 Fund balances (deficit) beginning of fiscal year 44,233,621 52,916,935 (4,751,402) Fund balances (deficit) end of fiscal year $ 53,776,144 47,171,474 $ (1,484,315) $ Special Revenue Funds
The accompanying notes are an integral part of these financial statements. -24-
Capital
Projects Fund
Landscape Total
Maintenance Nonmajor Total
Public Assessment Capital Governmental Governmental
Library District Improvements Funds Funds
$ 8,444,409 $ 10,878,586 $ - $ 142,904 $ 58,038,098
- - - - 1,975,771
39,805 - - 5,808,855 14,108,674
188,724 - - - 5,205,123
449,822 525,737 - 818,683 4,612,494
46,466 - - 46,555 157,666
- - - 48,058 48,058
31,049 115,169 - - 2,461,303
9,200,275 11,519,492 - 6,865,055 86,607,187
- - - 449,118 12,019,941
- - - - 15,001,761
- - - 148,784 6,117,221
- - - - 9,960,197
6,362,619 - - - 6,362,619
- 9,783,479 - - 14,883,335
69,200 - 8,166,627 47,339 8,820,406
630,000 - - - 630,000
513,138 - - - 513,138
7,574,957 9,783,479 8,166,627 645,241 74,308,618
1,625,318 1,736,013 (8,166,627) 6,219,814 12,298,569
- 1,191,193 8,166,627 144,914 9,767,343
- (469,787) - (5,021,751) (9,685,193)
- - - - 109,144
- 721,406 8,166,627 (4,876,837) 191,294
1,625,318 2,457,419 - 1,342,977 12,489,863
7,184,980 9,194,574 - 13,608,773 122,387,481
$ 8,810,298 $ 11,651,993 $ - $ 14,951,750 $ 134,877,344 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, 2025
The accompanying notes are an integral part of these financial statements. -25-
Net changes in fund balances - total governmental funds $ 12,489,863 Capital outlay 9,601,065 $
Disposal of asset, net (1,633)
Depreciation (8,890,585) 708,847
Changes in claims and judgments obligation 663,085
Changes in bond premium 64,261
Changes in compensated absence benefits, net (451,884) 275,462 Principal repayments 761,553
(5,285,063)
(609,972)
963,817
Change in net position of governmental activities $ 9,304,507 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 Fund
June 30, 2025
The accompanying notes are an integral part of these financial statements. -26-
Business-Type
Activities -
Enterprise Fund
Black
Gold Golf
Course
Assets:
Current:
Pooled cash and investments 3,860,644 $
Receivables 1,999
Inventories 272,017
Total current assets 4,134,660
Noncurrent:
Capital assets not being depreciated 12,721,948
Capital assets - net of accumulated depreciation 9,173,185 Total capital assets, net 21,895,133
Total noncurrent assets 21,895,133
Total assets 26,029,793
Liabilities:
Current:
Accounts payable 27,616
Accrued liabilities 2,497,401
Unearned revenues 307,434
Deposits payable 10,000
Advances from other funds 820,000
Loan payable 254,291
Total current liabilities 3,916,742
Noncurrent:
Loan payable 128,396
Total noncurrent liabilities 128,396
Total liabilities 4,045,138
Net position:
Net investment in capital assets 21,585,781
Unrestricted 398,874
Total net position $ 21,984,655
City of Yorba Linda
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -27-
Business-Type
Activities -
Enterprise Fund
Black
Gold Golf
Course
Operating revenues:
Charges for services 11,035,753 $
Total operating revenues 11,035,753
Operating expenses:
Administration and general 8,525,617
Cost of sales and services 1,348,760
Depreciation expense 918,193
Total operating expenses 10,792,570
Operating income 243,183
Nonoperating revenue (expense):
Investment income 174,664
Interest expense (7,208)
Total non-operating revenue (expense) 167,456
Other financing sources (uses):
Transfers out (82,150)
Total other financing sources (uses) (82,150)
Change in net position 328,489
Net position at beginning of fiscal year 21,656,166
Net position at end of fiscal year $ 21,984,655
City of Yorba Linda
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -28-
Business-Type
Activities -
Enterprise Fund
Black
Gold Golf
Course
Cash flows from operating activities:
Cash received from customers and users 11,056,334 $
Cash paid to suppliers for goods and services (1,349,630) Cash paid to employees for services (8,267,911)
Net cash provided by operating activities 1,438,793
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 (134,956) Interest paid (7,208)
Loan payment (250,992)
Transfer out for capital improvements (82,150)
Net cash used by capital and related financing activities (475,306) Cash flows from investing activities:
Interest received on investments 174,664
Net cash provided by investing activities 174,664
Net increase in cash and cash equivalents 898,151
Cash and cash equivalents at beginning of fiscal year 2,962,493 Cash and cash equivalents at end of fiscal year $ 3,860,644 Reconciliation of operating income to net cash
provided by operating activities
Operating income 243,183 $
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 918,193
Decrease (increase) in receivables 1,614
Decrease (increase) in inventories (18,310)
Increase (decrease) in accounts payable 17,440
Increase (decrease) in accrued liabilities 257,706
Increase (decrease) in unearned revenues 18,967
Total adjustments 1,195,610
Net cash provided by operating activities $ 1,438,793
City of Yorba Linda
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
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
Assets:
Pooled cash and investments 1,718,302 $ 7,178,447 $
Receivables:
Accounts receivable 228 3,391
Accrued interest - 18,030
Restricted assets:
Cash and investments with fiscal agents - 5,215
Total assets 7,205,083 1,718,530
Liabilities:
Account payable 100,691 -
Interest payable - 154,413
Long-term liabilities:
Due in one year - 1,544,288
Due in more than one year - 27,046,053
Total liabilities 28,744,754 100,691
Deferred inflow of resources:
Deferred amount on refunding - 1,862,011
Total deferred inflow of resources 1,862,011 -
Net position (deficit):
Restricted for Successor Agency - (23,401,682)
Restricted for others 1,617,839 -
Total net position (deficit) $ (23,401,682) 1,617,839 $
City of Yorba Linda
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -30-
PrivateCustodial Purpose Trust
Fund Fund
Special Successor
Deposits Agency of the
Funds Former RDA
Additions:
Taxes $ - $ 4,886,446
Interest and change in fair value of investments - 290,426 Collections for other entities 1,081,056 -
Total additions 1,081,056 5,176,872
Deductions:
Administrative expenses - 9,324
Bond interest - 807,165
Payments to other entities 355,346 -
Total deductions 355,346 816,489
Change in net position 725,710 4,360,383
Net position (deficit) at beginning of year,
as previously stated - (27,762,066)
Restatement - error correction (note 16) 892,129 -
Net position (deficit) at beginning of year,
as restated 892,129 (27,762,066)
Net position (deficit) at end of fiscal year $ 1,617,839 $ (23,401,683)
THIS PAGE INTENTIONALLY LEFT BLANK
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-31-
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, 2025. 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, 2025
-32-
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 private-purpose trust fund. The Successor Agency does not have separately issued financial statements.
B) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities that rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include:
1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-33-
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, 2025
-34-
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 resources restricted to support the City’s affordable housing programs, including activities of the former Yorba Linda Redevelopment Agency Low and Moderate Income Housing Fund. Funding sources include developer impact fees, federal and State grants, program income such as loan repayments, and transfers from other governmental funds.. • 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, 2025
-35-
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, 2025
-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
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, 2025
-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)
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.
U.S. GAAP requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. Infrastructure assets are defined as “…long lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets…” Infrastructure assets are normally stationary in nature and are of value only to the government entity. They are basic physical assets that allow the government entity to function. Examples include streets, bridges and storm drains. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, etc. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-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)
The City has elected the Modified Approach for reporting 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
Right-to-use lease and subscription assets are amortized over the life of the associated contract.
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, 2025
-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)
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 in the governmental funds balance sheet and the statement of net position. 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, 2025
-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)
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, 2025
-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)
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, 2023
Measurement Date (MD) – June 30, 2024
Measurement Period (MP) – July 1, 2023 to June 30, 2024 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, 2025
Measurement Date (MD) – June 30, 2024
Measurement Period (MP) – July 1, 2023 to June 30, 2024 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, 2025
-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)
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, 2025
-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)
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, 2025
-44-
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)
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. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
The City implemented GASB Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-45-
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. 103 Financial Reporting Model
Improvements
The provisions of this Statement
are effective for fiscal years
ending after 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.
GASB Statement No. 105 Subsequent Events The provisions of this Statement are effective for fiscal year
ending June 15, 2026.
2) STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balance / Net Position
The Miscellaneous Grants Fund had a deficit fund balance of $1,484,315, as of June 30, 2025.
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 $574,730, as of June 30, 2025, 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, 2025
-46-
3) CASH AND INVESTMENTS
Cash and investments as of June 30, 2025, are classified in the accompanying financial statements as follows:
Statement of net position:
Pooled cash and investments 86,934,094 $
Cash and investments with fiscal agents 1,033
Statement of fiduciary net position:
Pooled cash and investments 8,896,749
Cash and Investments with Fiscal Agents 5,215
Total Cash and Investments 95,837,091 $
Cash and investments as of June 30, 2025, consist of the following:
Petty cash 12,470 $
Sum of deposits with financial institutions 7,085,285
Investments 88,739,336
Total 95,837,091 $
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, 2025
-47-
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, 2025
-48-
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, 2025, 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 74,967 $ 2,309,205 $ 9,213,591 $ 11,597,763 $ Negotiable Certificates of Deposit 714,797 713,948 1,428,745 Asset-Backed Securities 14,529 166,158 - 180,687
Bank Note - - 759,184 759,184
U.S Treasury Issues 1,703,987 6,654,329 18,389,752 26,748,068 U.S Government Agency Securities:
Federal Agency Bond/Note - 371,560 - 371,560
Federal Agency Commercial Mortgage-Backed
Security - 1,478,476 8,296,891 9,775,367
Municipal Bond 685,771 111,035 121,561 918,367
Supra-National Agency Bond / Note - 236,730 - 236,730
Local Agency Investment Fund (LAIF) 4,080,364 - - 4,080,364 California Asset Management Program (CAMP) 32,642,501 - - 32,642,501 $ 12,041,441 39,916,916 $ 36,780,979 $ 88,739,336 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-49-
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 fair value.
Prices that fall between data points are interpolated.
The City had the following recurring fair value measurements as of June 30, 2025:
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 11,597,763 $ - $ $ 11,597,763 $ - Negotiable Certificates of Deposit 1,428,745 - 1,428,745 - Asset-Backed Securities 180,687 - 180,687 -
Bank Note 759,184 - 759,184 -
U.S Treasury Issues 26,748,068 - 26,748,068 -
Federal Agency Bond/Note 371,560 - 371,560 -
Federal Agency Commercial Mortgage-Backed
Security 9,775,367 - 9,775,367 -
Municipal Bond 918,367 - 918,367 -
Supra-National Agency Bond / Note 236,730 - 236,730 -
Total Investments at Fair Value 52,016,471 $ - $ 52,016,471 $ - Investments not subject to fair value hierarchy:
Local Agency Investment Fund (LAIF) 4,080,364
California Asset Management Program (CAMP) 32,642,501
Total Investments $ 88,739,336
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-50-
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 11,597,763 $ A- 409,379 $ 2,581,946 $ 8,437,686 $ - $ 168,752 $ Negotiable Certificates of Deposit 1,428,745 A- - - 1,428,745 - - Asset-Backed Securities 180,687 A- 180,687 - - - -
Bank Note 759,184 N/A - - 759,184 - -
U.S. Treasury Issues 26,748,068 N/A - 26,748,068 - - -
U.S. Government Agency Securities:
Federal Agency Bond/Note 371,560 N/A - 371,560 - - -
Federal Agency Commercial Mortgage-Backed
Security 9,775,367 N/A - 9,775,367 - - -
Municipal Bond 918,367 N/A - 516,035 - - 402,332
Supra-National Agency Bond / Note 236,730 N/A 236,730 - - - - Local Agency Investment Funds (LAIF) 4,080,364 N/A - - - - 4,080,364 California Asset Management Program (CAMP) 32,642,501 N/A 32,642,501 - - - - Total 88,739,336 $ 33,469,297 $ 39,992,976 $ 10,625,615 $ - $ 4,651,448 $ 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, 2025
-51-
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, 2025, 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, 2025, was $4,080,364. LAIF is part of the California Pooled Money Investment Account (PMIA), which as of June 30, 2025, had a balance of $179,153,321,241. LAIF is unrated as to credit quality.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-52-
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, 2025, CAMP had a total portfolio of approximately $22 billion of which all was invested in non-derivative financial products.
The average maturity of CAMP investments was 60 days as of June 30, 2025. 4) LEASE RECEIVABLE
The City has 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, 2025, the value of the lease receivable is $1,250,882. The lessees 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, 2025, is $1,139,398, and the City recognized lease revenue of $218,077 during the fiscal year. The lessees have 1 – 3 extension option(s), each for 60 months.
The remaining expected to maturity principal and interest receipts related to leases for the following fiscal years are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
2026 169,696 $ 11,185 $ 180,881 $
2027 122,288 9,999 132,287
2028 97,883 8,982 106,865
2029 80,557 8,043 88,600
2030 85,053 7,090 92,143
2031 - 2035 477,419 19,113 496,532
2036 - 2039 217,986 2,005 219,991
Total 1,250,882 $ 66,417 $ 1,317,299 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-53-
5) CAPITAL ASSETS
The City elected to use the Modified Approach for infrastructure reporting for its Pavement Subsystem. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the Modified Approach is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems are depreciated.
Capital asset activity for the fiscal year ended June 30, 2025, was as follows:
Balance Balance
July 1, 2024 Increases Decreases Transfers June 30, 2025 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 12,701,267 5,316,625 - (12,532,051) 5,485,841 Total Capital Assets
Not Being Depreciated/Amortized 247,882,094 5,316,625 - (12,532,051) 240,666,668 Capital Assets, Being Depreciated/Amortized:
Buildings and improvements 135,922,941 12,719 - 860,887 136,796,547 Machinery and equipment 16,931,313 690,506 - - 17,621,819 Motor vehicles 2,400,935 227,611 (270,270) - 2,358,276
Other Infrastructure 168,950,207 3,353,604 - 11,671,164 183,974,975 Right-to-use subscriptions 541,711 - - - 541,711
Total Capital Assets
Being Depreciated/Amortized: 324,747,107 4,284,440 (270,270) 12,532,051 341,293,328 Less Accumulated Depreciation/Amortization:
Buildings and improvements (40,999,383) (4,588,908) - - (45,588,291) Machinery and equipment (13,907,085) (454,128) - - (14,361,213) Motor vehicles (1,230,608) (232,628) 268,637 - (1,194,599) Other Infrastructure (48,866,298) (3,476,065) - - (52,342,363) Right-to-use subscriptions (277,515) (138,856) - - (416,371) Total Accumulated Depreciation/Amortization (8,890,585) (105,280,889) 268,637 - (113,902,837) Total Capital Assets
Being Depreciated/Amortized, Net 219,466,218 (4,606,145) (1,633) 12,532,051 227,390,491 Capital Assets, Net 467,348,312 $ 710,480 $ (1,633) $ - $ 468,057,159 $ Depreciation/amortization expense was charged to the following functions in the Statement of Activities:
Governmental Activities:
General government 2,005,757 $
Public safety 65,833
Community development 1,907
Parks and recreation 4,258,047
Public works 2,559,041
Total 8,890,585 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-54-
5) CAPITAL ASSETS (continued)
Balance Balance
July 1, 2024 Increases Decreases Transfers June 30, 2025 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 21,725,649 3,537 - - 21,729,186 Machinery and equipment 3,714,332 131,419 - - 3,845,751 Total Capital Assets
Being Depreciated 25,439,981 134,956 - - 25,574,937
Less Accumulated Depreciation:
Structures and improvements (13,534,804) (585,063) - - (14,119,867) Machinery and equipment (1,948,755) (333,130) - - (2,281,885) Total Accumulated Depreciation (15,483,559) (918,193) - - (16,401,752) Total Capital Assets
Being Depreciated, Net 9,956,422 (783,237) - - 9,173,185 Capital Assets, Net 22,678,370 $ (783,237) $ - $ - $ 21,895,133 $ 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 918,193 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-55-
6) LONG-TERM RECEIVABLES
Loans Receivable (Net)
Loans and notes receivable as of June 30, 2025, totaled $48,273,701 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, 2025, was $19,186,672.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-56-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (continued)
Affordable Housing Agreements
Evergreen Villas, L.P.
In December 2009, the former Redevelopment Agency entered into an Affordable Housing Agreement with Evergreen Villas, LP for the purchase and rehabilitation of a multi-family condominium complex commonly known as “Evergreen Condominiums”. The project consists of rehabilitating all 26 condominium units and offering them at rents affordable to and to be occupied by very low-income occupants. The Agency assisted in the development of the project by providing financial assistance in the form of a subordinate financing loan in an amount not to exceed $3,254,200. This amount consists of the agreed upon value of the property of $3,169,500 plus an amount not to exceed $84,700 cash for certain property acquisition and development expenses associated with the project. The loan bears no interest and will be repaid over the 55-year covenant period from the close of escrow. In June 2010, the Agency provided further financial assistance in the form of a subordinate financing loan in the amount of $196,140 for the developer’s acquisition and rehabilitation of an additional unit. In April 2011, the Agency expanded the program citywide, committing up to an additional $9.0 million of housing funds for the acquisition and rehabilitations in various condominium complexes citywide that were experiencing high rates of foreclosure.
Additional amounts of $744,142, $494,516, $1,329,009, and $331,569 were loaned during fiscal years 2013-2014, 2014-2015, 2016-2017, and 2017-2018, respectively. On December 18, 2018, the City Council authorized the reallocation of up to $2,382,050 of the funds from this project to the development of a new 48- unit senior apartment complex on Altrudy Lane as discussed in more detail below under Orange Housing Development Corporation. During fiscal year 2019-2020, a total of $1,215,813 was reallocated between the two projects. The total outstanding balance as of June 30, 2025, for Evergreen Villas was $9,772,693.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-57-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (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, 2025, was $12,597,594.
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, 2025
-58-
6) LONG-TERM RECEIVABLES (continued)
Loans Receivable (Net) (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, 2025, was $6,716,742.
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, 2025, 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, 2025
-59-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2025, was as follows:
A) Due To / From Other Funds
Receiving Funds Amount Paying Funds Amount
Major Governmental Fund Major Governmental Fund
General Fund 3,877,194 $ Miscellaneous Grants Fund 3,123,315 $ Nonmajor Governmental Funds
Road Maintenance and Rehab Fund 117,306
SB-2 Fund 574,730
Traffic Safety Fund 6,604
CDBG Grant Fund 55,239
Total 753,879
$ 3,877,194 3,877,194 $
Interfund balances are the result of short-term borrowing to cover negative cash balances and operating shortages as of June 30, 2025. 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 820,000 $ Black Gold Golf Course Fund 820,000 $ $ 820,000 820,000 $
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, 2025
-60-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) C) Interfund Transfers
Receiving Funds Amount Paying Funds Amount
Major Governmental Funds Major Governmental Funds
General Fund 264,609 $ General Fund 2,471,650 $
Landscape Maintenance
Assessment District Fund 1,191,193
Landscape Maintenance
Assessment District Fund 469,787
Capital Improvement Fund 8,166,627 Miscellaneous Grants 1,722,005 Nonmajor Governmental Funds Nonmajor Governmental Funds Lighting and Signal Project Fund 144,914 CDBG Fund 85,564 Gas Tax Fund 1,837,479
Measure M2 Fund 503,787
Road Maintenance and
Rehabilitation Fund 1,666,829
Traffic Safety Fund 46,555
Citizen Option Public Safety Fund 200,769
Park in Lieu Fund 2,808
Master Plan of Drainage Fund 475,103
Traffic Mitigation Fund 59,765
Lighting and Signal Project Fund 143,092
Proprietary Funds
Black Gold Golf Course 82,150
$ 9,767,343 9,767,343 $
The transfer to the Capital Improvements Fund in the amount of $8,166,627 consisted primarily of:
1. The transfer from the General Fund of $1,280,457 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 $324,874, is related to funding the LMAD Capital Improvement Renovation project.
3. The transfers from the Miscellaneous Grants Fund of $1,712,220, other nonmajor governmental funds of $4,766,926, and Black Gold Golf Course of $82,150 were primarily for funding the Capital Improvements Fund for capital expenditures.
The transfer to the Landscape Maintenance Assessment District Fund of $1,191,193 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, 2025
-61-
7) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) C) Interfund Transfers (continued)
The transfers to the General Fund of $264,609 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 $144,914 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, 2025:
Balance Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Governmental Activities:
Lease Revenue Bonds $ 11,930,000 $ - $ (630,000) $ 11,300,000 $ 660,000 Unamortized Bond Premium 891,065 - (64,261) 826,804 64,261 Subscription Liability 225,326 - (131,553) 93,773 52,409 Claims and Judgements:
Claims Liability 931,406 - (643,308) 288,098 173,504
Workers Compensation 653,204 - (19,777) 633,427 82,508
Compensated Absences 1,281,852 1,396,102 (944,218) 1,733,736 856,245 Net Pension Liability (Note 10) 25,884,242 - (1,796,951) 24,087,291 - Net OPEB Liability (Note 11) 17,167,952 1,499,108 - 18,667,060 - Total $ 58,965,047 $ 2,895,210 $ (4,230,068) $ 57,630,189 $ 1,888,927
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-62-
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, 2025, was $11,300,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
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 800,000 339,888 1,139,888
2031 - 2035 4,510,000 1,165,063 5,675,063
2036 - 2038 3,155,000 255,800 3,410,800
Total 11,300,000 $ 3,483,053 $ 14,783,053 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-63-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) Subscription Liability
The City has 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, 2025, the value of the subscription liability is $93,773. 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, 2025, of $541,711 with accumulated amortization of $416,371 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, 2025, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
2026 52,409 $ 1,934 $ 54,343 $
2027 41,364 979 42,343
Total 93,773 $ 2,913 $ 96,686 $
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, 2025
-64-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (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, 2025
-65-
8) LONG-TERM LIABILITIES (continued)
A) Long-Term Liabilities – Governmental Activities (continued) On June 30, 2025, 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, 2025, of $921,525 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, 2025, and 2024, 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
2024 $ 749,342 $ 881,562 $ 46,294 $ 1,584,610
2025 1,584,610 (617,128) 45,957 921,525
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. The outstanding balance at June 30, 2025, was $1,733,736.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-66-
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, 2025:
Balance Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Business-Type Activities:
Loan payable 633,679 $ - $ (250,992) $ 382,687 $ 254,291 $ 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, 2025 was $382,687.
Fiscal Year
Ending June 30, Principal Interest Total
2026 254,291 $ 7,482 $ 261,773 $
2027 128,396 4,183 132,579
Total 382,687 $ 11,665 $ 394,352 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-67-
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, 2025, is $937,345. 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, 2023 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, 2025
-68-
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, 2025 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 11.79% 7.75%
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-69-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
A) General Information about the Pension Plan (continued) Employees Covered
On June 30, 2023 (valuation date), the following employees were covered by the benefit terms for the Plan:
Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 167 Inactive employees entitled to but not yet receiving benefits 67 Former employees currently working for another CalPERS agency 66 Active employees 130
Total 430
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, 2025, were $3,329,933.
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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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, 2025
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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, 2023
Measurement Date June 30, 2024
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, 2025
-71-
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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-72-
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, 2025
-73-
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, 2023 (VD) $ 69,860,586 95,744,828 $ 25,884,242 $ Changes in Recognized for the
Measurement Period:
Service Cost 2,297,678 - 2,297,678
Interest on the Total Pension Liability 6,571,845 - 6,571,845 Differences between Expected
and Actual Experience 676,419 - 676,419
Contribution from the Employer - 3,173,820 (3,173,820)
Contributions from the Employees - 1,407,489 (1,407,489) Net Investment Income2 - 6,818,430 (6,818,430)
Benefit Payments, including Refunds
of Employee Contributions (4,651,911) (4,651,911) -
Administrative Expense - (56,846) 56,846
Net Changes during 2023-24 4,894,031 6,690,982 (1,796,951) Balance, June 30, 2024 (MD)1 $ 76,551,568 100,638,859 $ 24,087,291 $ 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 $ 37,754,785 $ 24,087,291 $ 12,876,577
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-74-
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 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, 2023), the City’s net pension liability was $25,884,242 For the measurement period ending June 30, 2024 (the measurement date), the City incurred pension expense of $3,939,687.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-75-
10) CITY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (continued)
D) CalPERS Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (continued)
As of June 30, 2025, 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 3,329,933 $ - $ Changes of assumption 434,451 -
Differences between expected and actual experience 826,383 (80,236) Net differences between projected and actual earnings
on pension plan investments 963,698 -
Total 5,554,465 $ (80,236) $
These amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $3,329,933 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Deferred Outflows
Fiscal Year (Inflows) of
Ended June 30, Resources
2026 727,732 $
2027 2,037,969
2028 (220,862)
2029 (400,543)
E) Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $193,456 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, 2025
-76-
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 $2,343,000 and the total actual contribution was $1,584,072 for fiscal year ended June 30, 2025.
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, 2025
-77-
11) OTHER POST-EMPLOYMENT BENEFITS (continued)
A) General Information about the Other Post-employment Benefits Plan (continued) Employees Covered
On June 30, 2024 (measurement date), the following employees were covered by the benefit term:
Inactive employees or beneficiaries currently receiving benefits 82 Inactive employees entitled to but not yet receiving benefits 17 Active employees 113
Total 212
B) Net OPEB Liability
The net OPEB liability of the Plan was measured as of June 30, 2024, using an actuarial valuation as of June 30, 2025, rolled back to June 30, 2024, 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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-78-
11) OTHER POST-EMPLOYMENT BENEFITS (continued)
B) Net OPEB Liability (continued)
The net OPEB liability in the June 30, 2024 (measurement date) actuarial valuation was determined using the following actuarial assumptions:
Measurement Date June 30, 2024
Actuarial Cost Method Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.30%
Inflation 2.50%
Payroll Growth 2.75%
Medical trend Non-Medicare: 7.50% for 2027, decreasing to an ultimate rate of 3.53% in 2076,
Medicare: 5.80% for 2027, decreasing to an ultimate rate of 3.53% in 2076
Asset Return 6.3%(1)
Mortality Derived using CalPERS' Membership Data for all Funds (1) Assuming the City invests in California Employers' Retiree Benefit Trust (CERBT) under its investment allocation strategy.
Discount Rate
The discount rate used to measure the total OPEB liability as of the June 30, 2024 measurement date, was 6.30%. The discount rate was increased from 6.00% in measurement date June 30, 2023.
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, 2024, are summarized in the following table:
Assumed
Asset Class Target Allocation Gross Return
Global Equities 49.0% 5%
Fixed Income 23.0% 3%
Real Estate Investment Trusts 20.0% 4%
Commodities 3.0% 2%
Treasury Inflation Protected Securities 5.0% 2%
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-79-
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, 2023 (MD) 19,447,818 $ Service Cost 468,140
Interest 1,167,779
Differences between Expected
and Actual Experience 1,336,859
Changes of Assumptions 182,689
Benefit Payments (905,921)
Net Changes during 2023-24 2,249,546
Total OPEB Liability Balance, June 30, 2024 (MD) 21,697,364 Plan Fiduciary Net Position
Contribution from the Employer 1,412,089
Benefit Payments (905,921)
Admin and Other Expense (6,928)
Investment Gains/(Losses) 251,198
Net Changes during 2023-24 750,438
Plan Fiduciary Net Position - Beginning 2,279,866
Plan Fiduciary Net Position - Ending 3,030,304
Net OPEB Liability Balance, June 30, 2024 (MD) 18,667,060 $ 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 6.30%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.30%) or 1-percentagepoint higher (7.30%) than the current rate:
Discount Rate - Current Discount Discount Rate
1% (5.30%) Rate (6.30%) +1% (7.30%)
Net OPEB Liability 21,311,685 $ 18,667,060 $ 16,460,657 $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-80-
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 16,409,873 $ 18,667,060 $ 21,400,251 $ D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $620,255.
At measurement date of June 30, 2024, 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 1,584,072 $ - $ Differences between expected and actual experience 1,293,024 (1,230,121) Changes of assumption 1,826,524 (2,703,358)
Differences between projected and actual earnings
on OPEB plan investments 13,626 -
Total 4,717,246 $ (3,933,479) $
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-81-
11) OTHER POST-EMPLOYMENT BENEFITS (continued)
D) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (continued)
The amount of $1,584,072 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
2026 (890,407) $
2027 (845,958)
2028 (3,985)
2029 (3,344)
2030 268,595
Thereafter 674,794
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-82-
12) NET POSITION
As of June 30, 2025, the City reported the following net position classifications:
Net investment in capital assets:
Governmental activities capital assets, net 468,057,159 $ Lease Revenue Bonds (11,300,000)
Unamortized bond premium (826,804)
Subscription liability (93,773)
Total net investment in capital assets 455,836,582 $
Restricted for:
General government 404,199
Parks and recreation 1,550,030
Public works 25,134,044
Library 8,686,926
Low and moderate housing 53,866,344
Unrestricted 9,465,380
Total net position - governmental activities 554,943,505 $ Net investment in capital assets:
Business-type activities capital assets, net 21,895,133 $ Loan Payable (382,687)
Unspent proceeds - Loan Payable 73,335
Total net investment in capital assets 21,585,781 $
Unrestricted 398,874
Total net position - business-type activities 21,984,655 $ 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, 2025
-83-
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, 2025. 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 20, 2025, 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, 2025
-84-
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 $50,352 at June 30, 2025. 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, 2025
-85-
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, 2025:
Pooled cash and investments 7,178,447 $
Restricted cash and investments held with fiscal agent 5,215 Total cash and investments 7,183,662 $
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, 2025, follows:
Balance Accreted Balance Due Within
June 30, 2024 Interest Deletions June 30, 2025 One Year Tax Allocation Bonds 31,130,465 $ 751,288 $ 4,365,000 $ 27,516,753 $ 1,385,335 $ Unamortized Premium 1,262,212 - 154,157 1,108,055 154,157 Unamortized Discount (39,265) - (4,798) (34,467) 4,796
Total 32,353,412 $ 751,288 $ 4,514,359 $ 28,590,341 $ 1,544,288 $ 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, 2025
-86-
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 $11,026,822 of the capital appreciation bonds as of June 30, 2025, was $14,516,753.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
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 3,489,931 12,410,069 $ 15,900,000 $
Accretion 11,026,822
$ 14,516,753
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-87-
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, 2025, was $13,000,000.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:
Fiscal Year
Ending June 30, Principal Interest Total
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 3,430,000 346,850 3,776,850
2031-2033 7,765,000 452,566 8,217,566
Total 13,000,000 $ 2,531,955 $ 15,531,955 $
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.
City of Yorba Linda
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025
-88-
16) ADJUSTMENTS AND RESTATEMENTS OF BEGINNING BALANCES
GASB statement 101, Accounting Changes and Error Corrections requires that significant reclassification be disclosed. In the current year, the deferred gain on refunding for the Successor Agency of the Former RDA was separated and presented as a deferred inflow of resources in the Statement of Fiduciary Net Position. This amount was included in the longterm liabilities in prior years.
GASB Statement 84, Fiduciary Activity, established criteria for the presentation of custodial fund activities. In the current year, the City corrected the presentation of the additions and deductions and corrected net position previously reported as a deposit payable.
Custodial Fund
Net position, beginning of the year, as previously stated - $ Error correction 892,129
Net position, beginning of the year, as restated 892,129 $ Statement of Changes in Fiduciary Net Position -
REQUIRED SUPPLEMENTARY
INFORMATION
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2025
-89-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 38,569,215 $ 38,361,756 $ 38,572,199 $ 210,443 $
Licenses and permits 1,718,500 1,085,035 1,975,771 890,736 Intergovernmental 477,731 383,525 699,033 315,508
Charges for services 6,006,720 5,844,353 5,016,399 (827,954) Investment income 509,840 1,019,525 1,938,543 919,018
Fines and forfeitures 45,000 45,000 64,645 19,645
Miscellaneous 708,425 3,197,393 2,315,085 (882,308)
Total revenues 49,936,587 48,035,431 50,581,675 645,088 Expenditures
General government:
Administration 9,168,881 10,432,682 9,838,302 594,380
City Attorney 650,000 650,000 401,795 248,205
Finance 1,404,221 1,433,502 1,330,726 102,776
Public safety 15,299,177 15,317,566 15,001,761 315,805
Community development 3,719,154 3,816,005 3,376,048 439,957 Parks and recreation 9,943,004 10,292,197 9,960,197 332,000 Public works 6,067,266 6,354,986 5,099,856 1,255,130
Capital outlay 618,600 629,467 537,240 92,227
Total expenditures 48,926,405 46,870,303 45,545,925 3,380,480 Excess of Revenues over
(under) Expenditures 1,165,128 1,010,182 5,035,750 4,025,568 Other financing sources (uses):
Transfers in 229,000 511,008 264,609 (246,399)
Transfers out (2,088,066) (5,677,356) (2,471,650) 3,205,706 Proceeds from sale of City property 10,000 10,000 109,144 99,144 Total other financing sources (uses) (1,849,066) (5,156,348) (2,097,897) 3,058,451 Net change in fund balance (683,938) (4,146,166) 2,937,853 7,084,019 Fund balance at beginning of fiscal year 44,233,621 44,233,621 44,233,621 - Fund balance at end of fiscal year 43,549,683 $ 40,087,455 $ 47,171,474 $ 7,084,019 $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Affordable Housing Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-90-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental - $ - $ 2,571,889 $ 2,571,889 $
Investment income 28,140 77,100 879,709 802,609
Total revenues 77,100 28,140 3,451,598 3,374,498
Expenditures
Community development 58,500 58,500 2,592,389 (2,533,889) Total expenditures 58,500 58,500 2,592,389 (2,533,889)
Net change in fund balance (30,360) 18,600 859,209 840,609 Fund balance at beginning of fiscal year 52,916,935 52,916,935 52,916,935 - Fund balance at end of fiscal year 52,886,575 $ 52,935,535 $ 53,776,144 $ 840,609 $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Miscellaneous Grants Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-91-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental $ 1,443,436 $ 9,623,264 $ 4,989,092 $ (4,634,172) Total revenues 1,443,436 9,623,264 4,989,092 (4,634,172) Other financing sources (uses)
Transfers out (1,443,436) (9,623,264) (1,722,005) 7,901,259 Total other financing sources (uses) (1,443,436) (9,623,264) (1,722,005) 7,901,259 Net change in fund balance - - 3,267,087 3,267,087
Fund balance (deficit) at beginning of fiscal year (4,751,402) (4,751,402) (4,751,402) - Fund balance (deficit) at end of fiscal year $ (4,751,402) $ (4,751,402) $ (1,484,315) $ 3,267,087
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Public Library Special Revenue Fund
For the Fiscal Year Ended June 30, 2025
-92-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 8,255,667 $ 8,504,006 $ 8,444,409 $ (59,597) $
Intergovernmental - 26,537 39,805 13,268
Charges for services 158,000 158,000 188,724 30,724
Investment income 62,860 166,800 449,822 283,022
Fines and forfeitures 25,000 25,000 46,466 21,466
Miscellaneous - - 31,049 31,049
Total revenues 8,880,343 8,501,527 9,200,275 319,932
Expenditures
Library 6,795,300 6,896,968 6,362,619 534,349
Capital outlay 180,300 181,436 69,200 112,236
Debt service:
Principal retirement 630,000 630,000 630,000 -
Interest 513,140 513,140 513,138 2
Total expenditures 8,221,544 8,118,740 7,574,957 646,587 Net change in fund balance 382,787 658,799 1,625,318 966,519 Fund balance at beginning of fiscal year 7,184,980 7,184,980 7,184,980 - Fund balance at end of fiscal year 7,567,767 $ 7,843,779 $ 8,810,298 $ 966,519 $
City of Yorba Linda
Required Supplementary Information
Budgetary Comparison Schedule
Landscape Maintenance Assessment District Special Revenue Fund For the Fiscal Year Ended June 30, 2025
-93-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $ 9,946,423 $ 10,844,392 $ 10,878,586 $ 34,194
Investment income 106,133 232,100 525,737 293,637
Miscellaneous 10,000 10,000 115,169 105,169
Total revenues 10,062,556 11,086,492 11,519,492 433,000 Expenditures
Public works 11,023,437 11,689,694 9,783,479 1,906,215
Total expenditures 11,023,437 11,689,694 9,783,479 1,906,215 Excess of Revenues over
(under) Expenditures (960,881) (603,202) 1,736,013 2,339,215 Other financing sources (uses)
Transfers in 1,182,066 1,275,127 1,191,193 (83,934)
Transfers out (1,189,063) (1,635,687) (469,787) 1,165,900 Total other financing sources (uses) (6,997) (360,560) 721,406 1,081,966 Net change in fund balance (967,878) (963,762) 2,457,419 3,421,181 Fund balance at beginning of fiscal year 9,194,574 9,194,574 9,194,574 - Fund balance at end of fiscal year $ 8,226,696 $ 8,230,812 $ 11,651,993 $ 3,421,181
THIS PAGE INTENTIONALLY LEFT BLANK
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-94-
1) Infrastructure Assets Reported Using the Modified Approach The City’s infrastructure assets are recorded at historical cost in the government-wide financial statements as required by the GASB Statement No. 34. The maintained subsystem of the City’s major infrastructure network is reported under modified approach and is not subject to depreciation under GASB Statement No. 34
The Public Works Department, in conjunction with City Management, is responsible for determining the appropriate condition level at which the assets are to be maintained. The City documents that eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition level.
A physical condition assessment of the City’s streets is required by the Orange County Transportation Authority (OCTA) every two years for arterial streets and every six years for residential streets. The City contracts with a consultant to assess the City’s pavement condition every two years in order to comply with this requirement. The consultant’s assessment rates the City’s pavement condition based on a Pavement Condition Index (PCI) scale ranging from zero for a failed pavement to 100 for pavement in perfect condition. The most recent report dated May 2024, documented a PCI score of 78 for the City’s pavement.
The City Management, in consultation with the Public Works Department, has established the OCTA’s standard for receiving competitive grant funding of a PCI of 75 as the condition level against which the City’s current PCI should be measured. With a current PCI score of 78, 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
For the Fiscal Year Ended June 30, 2025
-95-
1) Infrastructure Assets Reported Using the Modified Approach (continued) This is demonstrated by the stable and at times improving PCI ratings over the five-year period shown in the table.
Payment Condition Estimated Actual
Fiscal Year Index (PCI) Rating Preservation Costs Preservation Costs 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
2024-2025 78 8,930,000 2,768,188
*Denotes years condition assessment was performed.
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-96-
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, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total Pension Liability
Service cost 2,297,678 $ 2,162,403 $ 2,107,336 $ 1,885,407 $ 1,696,577 $ Interest on total pension liability 6,571,845 6,250,881 5,919,104 5,709,277 5,438,271 Changes in assumptions - - 2,606,715 - -
Changes of Benefit Terms - 110,691 - - -
Difference between expected and actual
experience 676,419 833,551 (481,420) 272,016 (252,047)
Benefit payments, including refunds of
employee contributions (4,651,911) (4,359,468) (4,020,261) (3,773,449) (3,648,478) Net change in total pension liability 4,894,031 4,998,058 6,131,474 4,093,251 3,234,323 Total pension liability - beginning 95,744,828 90,746,770 84,615,296 80,522,045 77,287,722 Total pension liability - ending (a) 100,638,859 95,744,828 90,746,770 84,615,296 80,522,045 Plan Fiduciary Net Position
Contributions - employer 3,173,820 3,087,353 2,692,476 2,521,606 2,329,240 Contributions - employee 1,407,489 1,380,978 1,334,623 1,317,894 1,285,901 Net investment income 6,818,430 4,118,546 (5,414,116) 13,199,190 2,777,374 Benefit payments, including refunds of
employee contributions (4,651,911) (4,359,468) (4,020,261) (3,773,449) (3,648,478) Net plan to plan resource movement - - - - -
Administrative expense (56,846) (48,299) (44,312) (57,864) (77,902) Other miscellaneous income/(expense) - - - - -
Net change in plan fiduciary net position 6,690,982 4,179,110 (5,451,590) 13,207,377 2,666,135 Plan fiduciary net position - beginning 69,860,586 65,681,476 71,133,066 57,925,689 55,259,554 Plan fiduciary net position - ending (b) 76,551,568 69,860,586 65,681,476 71,133,066 57,925,689 Plan net pension liability - ending (a) - (b) 24,087,291 $ 25,884,242 $ 25,065,294 $ 13,482,230 $ 22,596,356 $ Plan fiduciary net position as a
percentage of the total pension liability 76.07% 72.97% 72.38% 84.07% 71.94% Covered payroll 12,386,404 $ 11,577,670 $ 10,839,343 $ 10,325,891 $ 9,867,749 $ Net pension liability as a percentage of
covered payroll 194.47% 223.57% 231.24% 130.57% 228.99%
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-97-
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, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 $ 1,458,002 1,623,776 $ 1,472,818 $ 1,318,758 $ 1,295,229 $ 4,969,509 5,230,301 4,762,222 4,610,554 4,439,809
(313,447) - 4,016,681 - (1,091,497)
- - - - -
203,742 716,490 (618,862) (505,685) (236,444)
(3,347,753) (3,811,074) (3,089,914) (3,046,770) (2,971,575) 2,970,053 3,759,493 6,542,945 2,376,857 1,435,522
70,558,176 73,528,229 64,015,231 61,638,374 60,202,852
73,528,229 77,287,722 70,558,176 64,015,231 61,638,374
1,833,255 2,063,002 1,483,366 1,186,312 1,121,845
1,150,359 1,228,098 1,062,547 979,418 925,172
4,165,920 3,467,727 4,935,247 222,302 944,792
(3,347,753) (3,811,074) (3,089,914) (3,046,770) (2,971,575) (122) - - - -
(75,993) (37,357) (65,616) (27,503) -
(144,313) 122 - - -
3,581,353 2,910,518 4,325,630 (686,241) 20,234
48,767,683 52,349,036 44,442,053 45,128,294 45,108,060
52,349,036 55,259,554 48,767,683 44,442,053 45,128,294
$ 21,179,193 22,028,168 $ 21,790,493 $ 19,573,178 $ 16,510,080 $
71.50% 71.20% 69.12% 69.42% 73.21%
$ 8,376,724 9,542,965 $ 7,779,688 $ 7,479,560 $ 7,574,466 $ 230.83% 252.83% 280.09% 261.69% 217.97%
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-98-
2) Schedule of Changes in the Net Pension Liability and Related Ratios – Last 10 Years (continued)
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Changes in Benefit Terms: 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, 2021 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 or 2024. 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, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-99-
3) Schedule of Pension Contributions – Last 10 Years
Fiscal year ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 Actuarially determined contribution 3,129,933 $ 2,787,414 $ 2,716,202 $ 2,412,234 $ Contributions in relation to the
actuarially determined contributions (3,329,933) (3,174,038) (3,083,164) (2,692,503) Contribution deficiency (excess) (200,000) $ (386,624) $ (366,962) $ (280,269) $ Covered payroll 12,001,639 $ 12,386,404 $ 11,577,670 $ 10,839,343 $ Contributions as a percentage of covered
payroll 27.75% 25.63% 26.63% 24.84%
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-100-
3) Schedule of Pension Contributions – Last 10 Years (continued) June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 $ 2,001,025 2,270,954 $ 1,706,948 $ 1,417,449 $ 1,268,816 $ 1,186,312 $ (2,329,240) (2,329,240) (2,063,002) (1,833,255) (1,483,366) (1,186,312) $ (328,215) (58,286) $ (356,054) $ (415,806) $ (214,550) $ - $ $ 9,867,749 10,325,891 $ 9,542,965 $ 8,376,724 $ 7,779,688 $ 7,479,560 $
22.56% 23.60% 21.62% 21.89% 19.07% 15.86%
Notes to Schedule of Pension Contributions
Valuation Date June 30, 2023
Measurement Date June 30, 2024
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 2024-25 were from the June 30, 2023 Funding Valuation Report.
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-101-
4) Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years* Measurement Measurement Measurement Measurement
Date Date Date Date
June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Total OPEB Liability
Service cost 468,140 $ 557,494 $ 511,612 $ 432,681 $
Interest on total OPEB liability 1,167,779 1,174,408 1,168,575 1,102,167 Differences between expected and
actual experience 1,336,859 (855,566) (167,601) (17,234) Changes in assumptions 182,689 (1,268,851) 1,867,235 554,630 Experience (Gains)/Losses - 155,875 - -
Benefit payments, including refunds of
employee contributions (905,921) - (725,445) (697,659)
Net change in total OPEB liability 2,249,546 (236,640) 2,654,376 1,374,585 Total OPEB liability - beginning 19,447,818 19,684,458 17,030,082 15,655,497 Total OPEB liability - ending (a) 21,697,364 19,447,818 19,684,458 17,030,082 Plan Fiduciary Net Position
Contributions - employer 1,412,089 511,600 995,445 997,659 Net investment income 251,198 114,403 (252,164) 304,626 Benefit payments, including refunds of
employee contributions (905,921) - (725,445) (697,659)
Administrative expense (6,928) (547) (432) (436)
Investment Gains/(Losses) - 3,221 - -
Other - - -
Net change in plan fiduciary net position 750,438 628,677 17,404 604,190 Plan fiduciary net position - beginning 2,279,866 1,651,189 1,633,785 1,029,595 Plan fiduciary net position - ending (b) 3,030,304 2,279,866 1,651,189 1,633,785 Net OPEB liability - ending (a) - (b) 18,667,060 $ 17,167,952 $ 18,033,269 $ 15,396,297 $ Plan fiduciary net position as a percentage
of the total OPEB liability 13.97% 11.72% 8.39% 9.59%
Covered payroll 11,889,076 $ 11,577,670 $ 10,839,343 $ 10,325,891 $ Net OPEB liability as a percentage of
covered payroll 157.01% 148.29% 166.37% 149.10%
*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
For the Fiscal Year Ended June 30, 2025
-102-
4) Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years (continued)
Measurement Measurement Measurement Measurement
Date Date Date Date
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 $ 1,041,877 514,178 $ 1,616,456 $ 1,559,082 $
1,103,430 1,081,753 1,051,971 879,863
(3,081,922) (738,379) (2,643,488) -
(4,249,457) (1,509,066) (3,754,316) (3,742,978)
- - - -
(708,272) (688,476) (701,025) (734,912)
(5,894,344) (1,339,990) (4,430,402) (2,038,945)
22,889,831 16,995,487 27,320,233 29,359,178
16,995,487 15,655,497 22,889,831 27,320,233
942,684 919,194 935,437 1,170,145
57,133 22,861 17,983 1,266
(708,272) (688,476) (701,025) (935,739)
(133) (437) (184) (1)
- - - -
- - (309) (2,532)
291,412 253,142 251,902 233,139
485,041 776,453 233,139 -
776,453 1,029,595 485,041 233,139
$ 16,219,034 14,625,902 $ 22,404,790 $ 27,087,094 $
6.58% 4.57% 2.12% 0.85%
$ 9,542,965 9,867,749 $ 8,376,724 $ 8,029,800 $
148.22% 169.96% 267.46% 337.33%
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-103-
5) Schedule of OPEB Contributions – Last 10 Years*
Fiscal year ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 Actuarially determined contribution $ 2,343,000 $ 2,343,241 $ 2,383,354 $ 2,290,449 Contributions in relation to the
actuarially determined contributions (1,584,072) (1,412,089) (1,235,999) (683,193) Contribution deficiency (excess) $ 758,928 $ 931,152 $ 1,147,355 $ 1,607,256 Covered payroll $ 12,478,611 $ 11,889,076 $ 11,577,670 $ 10,839,343 Contributions as a percentage of
covered payroll 12.69% 11.88% 10.68% 6.30%
Notes to Schedule of OPEB Contributions
*Fiscal year 2018 was the first year of implementation; additional information will be presented as it becomes available.
Valuation Date June 30, 2025
Measurement Date June 30, 2024
Amortization Method Level Percent of Payroll
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.3% at June 30, 2024; 6.0% at June 30, 2023 Inflation 2.50%
Projected Salary Increase 2.75%
Investment Rate of Return 6.03%(1)
Mortality Derived using CalPERS' Membership Data for all Funds (1)Assumes the City invests in the CERBT under its investment allocation strategy.
City of Yorba Linda
Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
-104-
5) Schedule of OPEB Contributions – Last 10 Years, (continued) June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 $ 919,194 $ 1,909,606 $ 2,107,584 $ 1,340,408
(599,730) (771,379) (832,398) (1,170,145)
$ 319,464 $ 1,138,227 $ 1,275,186 $ 170,263
$ 10,325,891 $ 9,867,749 $ 9,542,965 $ 8,775,000
5.81% 7.82% 8.72% 13.33%
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City of Yorba Linda
Notes to Required Supplementary Information (Unaudited) For the Fiscal Year Ended June 30, 2025
-105-
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, Custodial, 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.
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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, 2025
-106-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Expenditures
Capital outlay $ 9,912,945 $ 36,508,614 $ 8,166,627 $ 28,341,987 Total expenditures 9,912,945 36,508,614 8,166,627 28,341,987 Excess of Revenues over
(under) Expenditures (9,912,945) (36,508,614) (8,166,627) 28,341,987 Other financing sources (uses):
Transfers in 9,912,945 31,728,913 8,166,627 (23,562,286) Total other financing sources (uses) 9,912,945 31,728,913 8,166,627 (23,562,286) Net change in fund balance - (4,779,701) - 4,779,701
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year $ - $ (4,779,701) $ - $ 4,779,701
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City of Yorba Linda
Description of Nonmajor Funds
For the Fiscal Year Ended June 30, 2025
-107-
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.
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.
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City of Yorba Linda
Description of Nonmajor Funds
For the Fiscal Year Ended June 30, 2025
-108-
Capital Projects Funds
The Capital Projects funds are used to account for the acquisition and construction of various capital improvements and equipment for the City.
Parking In-Lieu Fund – To account for fees received from developers and businesses operating in the City’s Town Center to purchase parking allocations in the City’s parking structure in lieu of providing onsite parking as required for their development or business proposal. Funds collected following the construction of the parking structure will be utilized for future public parking improvements in the Town Center. The city did not adopt a budget for the Parking In-Lieu Fund.
Park In-Lieu Fund – To account for development impact fees used for the acquisition of parklands and the construction of park and recreation facilities.
Lighting and Signal Project Improvements Fund – To account for a portion of funds received in the lighting and traffic signal zones of the Landscape Maintenance Assessment District that have been allocated to street lighting and traffic signal capital projects.
Master Plan of Drainage Fund – To account for development impact fees used for the construction of major drainage improvements within the City.
Traffic Signal Improvements Fund – To account for development impact fees used for the construction of major street and traffic signal improvements within the City.
City of Yorba Linda
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-109-
Traffic CDBG
Gas Tax Safety Grant
Assets:
Pooled cash and investments 2,224,265 $ - $ - $
Receivables:
Accounts - - -
Accrued interest 14,478 - -
Advances to other funds - - -
Due from other governments 344,577 6,604 67,238
Total assets $ 6,604 2,583,320 $ 67,238 $
Liabilities and fund balances
Liabilities:
Accounts payable - $ - $ 10,000 $
Accrued liabilities - - 1,999
Due to other funds - 6,604 55,239
Total liabilities 6,604 - 67,238
Fund balances:
Restricted for:
General government - - -
Parks and recreation - - -
Public works 2,583,320 - -
Low and moderate housing - - -
Unassigned (deficit) - - -
Total fund balances - 2,583,320 -
Total liabilities and fund balances (deficit) $ 6,604 2,583,320 $ 67,238 $ Special Revenue Funds
(continued)
-110-
Citizens
Option Public Measure
Safety AQMD M2 SB-2
$ 664,780 - $ 711,620 $ - $
- - - -
4,510 - 14,701 -
- - - -
23,004 - 252,141 -
$ 692,294 - $ 978,462 $ - $
$ - - $ - $ - $
- - - -
- - - 574,730
- - - 574,730
- - - -
- - - -
692,294 - 978,462 -
- - - -
- - - (574,730)
692,294 - 978,462 (574,730)
$ 692,294 - $ 978,462 $ - $
Special Revenue Funds
City of Yorba Linda
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-111-
Mortgage Road Maintenance
Assistance and Rehabilitation
Program PEG Account
Assets:
Pooled cash and investments 88,996 $ 381,209 $ 6,591 $
Receivables:
Accounts - 28,403 -
Accrued interest 1,204 979 2,333
Advances to other funds - - -
Due from other governments - - 327,231
Total assets $ 410,591 90,200 $ 336,155 $
Liabilities and fund balances
Liabilities:
Accounts payable - $ 6,392 $ - $
Accrued liabilities - - -
Due to other funds - - 117,306
Total liabilities 6,392 - 117,306
Fund balances:
Restricted for:
General government - 404,199 -
Parks and recreation - - -
Public works - - 218,849
Low and moderate housing 90,200 - -
Unassigned (deficit) - - -
Total fund balances 404,199 90,200 218,849
Total liabilities and fund balances (deficit) $ 410,591 90,200 $ 336,155 $ Special Revenue Funds
(concluded)
-112-
Total
Lighting and Traffic Nonmajor
Parking Park Signal Project Master Plan Signal Governmental In-Lieu In-Lieu Improvements of Drainage Improvements Funds $ 1,544,195 31,038 $ 703,319 $ 5,878,071 $ 1,532,777 $ 13,766,861 $ - - - - - 28,403
5,835 - 2,231 34,970 7,168 88,409
- - - 820,000 - 820,000
- - - - - 1,020,795
$ 1,550,030 31,038 $ 705,550 $ 6,733,041 $ 1,539,945 $ 15,724,468 $ $ - 448 $ - $ - $ - $ 16,840 $
- - - - - 1,999
- - - - - 753,879
- 448 - - - 772,718
- - - - - 404,199
1,550,030 - - - - 1,550,030
- 30,590 705,550 6,733,041 1,539,945 13,482,051
- - - - - 90,200
- - - - - (574,730)
1,550,030 30,590 705,550 6,733,041 1,539,945 14,951,750 $ 1,550,030 31,038 $ 705,550 $ 6,733,041 $ 1,539,945 $ 15,724,468 $ Capital Projects Funds
City of Yorba Linda
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2025
-113-
Traffic CDBG
Gas Tax Safety Grant
Revenues:
Taxes - $ - $ - $
Intergovernmental 1,918,577 - 234,348
Investment income 162,111 - -
Fines and forfeitures - 46,555 -
Developer participation - - -
Total revenues 46,555 2,080,688 234,348
Expenditures:
Current:
General government - - -
Community development - - 148,784
Capital outlay - - -
Total expenditures - - 148,784
Excess (deficiency) of revenues
over (under) expenditures 2,080,688 46,555 85,564
Other financing sources (uses):
Transfers in - - -
Transfers out (1,837,479) (46,555) (85,564)
Total other financing sources (uses) (46,555) (1,837,479) (85,564) Net change in fund balances 243,209 - -
Fund balances (deficit) at beginning of fiscal year 2,340,111 - - Fund balances (deficit) at end of fiscal year $ - 2,583,320 $ - $ Special Revenue Funds
(continued)
-114-
Citizens
Option Public Measure
Safety AQMD M2 SB-2
$ - $ - $ - $ -
200,769 88,089 1,418,804 91,327
- 31,067 63,445 -
- - - -
- - - -
200,769 119,156 1,482,249 91,327
- - - 373,760
- - - -
- 31,213 - -
- 31,213 - 373,760
200,769 87,943 1,482,249 (282,433)
- - - -
(200,769) - (503,787) -
(200,769) - (503,787) -
- 87,943 978,462 (282,433)
- 604,351 - (292,297)
$ - $ 692,294 $ 978,462 $ (574,730)
Special Revenue Funds
City of Yorba Linda
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2025
-115-
Mortgage Road Maintenance
Assistance and Rehabilitation
Program PEG Account
Revenues:
Taxes - $ 142,904 $ - $
Intergovernmental - - 1,856,941
Investment income 4,546 17,038 28,737
Fines and forfeitures - - -
Developer participation - - -
Total revenues 159,942 4,546 1,885,678
Expenditures:
Current:
General government - 75,358 -
Community development - - -
Capital outlay - 16,126 -
Total expenditures 91,484 - -
Excess (deficiency) of revenues
over (under) expenditures 4,546 68,458 1,885,678
Other financing sources (uses):
Transfers in - - -
Transfers out - - (1,666,829)
Total other financing sources (uses) - - (1,666,829)
Net change in fund balances 4,546 68,458 218,849
Fund balances (deficit) at beginning of fiscal year 85,654 335,741 - Fund balances (deficit) at end of fiscal year $ 404,199 90,200 $ 218,849 $ Special Revenue Funds
(concluded)
-116-
Total
Lighting and Traffic Nonmajor
Parking Park Signal Project Master Plan Signal Governmental In-Lieu In-Lieu Improvements of Drainage Improvements Funds $ - - $ - $ - $ - $ 142,904 $
- - - - - 5,808,855
1,735 82,458 36,278 310,138 81,130 818,683
- - - - - 46,555
- 42,760 - - 5,298 48,058
1,735 125,218 36,278 310,138 86,428 6,865,055
- - - - - 449,118
- - - - - 148,784
- - - - - 47,339
- - - - - 645,241
1,735 125,218 36,278 310,138 86,428 6,219,814
- - 144,914 - - 144,914
- (2,808) (143,092) (475,103) (59,765) (5,021,751)
- (2,808) 1,822 (475,103) (59,765) (4,876,837)
1,735 122,410 38,100 (164,965) 26,663 1,342,977
28,855 1,427,620 667,450 6,898,006 1,513,282 13,608,773 $ 30,590 $ 1,550,030 $ 705,550 $ 6,733,041 $ 1,539,945 $ 14,951,750 Capital Projects Funds
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Gas Tax Special Revenue Fund
Fiscal Year Ended June 30, 2025
-117-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 2,063,337 $ 1,942,868 $ 1,918,577 $ (24,291) $ Investment income 63,929 100,000 162,111 62,111
Total revenues 2,042,868 2,127,266 2,080,688 37,820
Excess (Deficiency) of Revenues
over (under) Expenditures 2,127,266 2,042,868 2,080,688 37,820 Other financing sources (uses)
Transfers out (2,205,509) (3,845,851) (1,837,479) 2,008,372 Total other financing sources (uses) (3,845,851) (2,205,509) (1,837,479) 2,008,372 Net change in fund balance (78,243) (1,802,983) 243,209 2,046,192 Fund balance at beginning of fiscal year 2,340,111 2,340,111 2,340,111 - Fund balance at end of fiscal year 2,261,868 $ 537,128 $ 2,583,320 $ 2,046,192 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Traffic Safety Special Revenue Fund
Fiscal Year Ended June 30, 2025
-118-
Variance with
Final Budget
Original and Actual Positive
Final Budget Amounts (Negative)
Revenues
Fines and forfeitures 51,500 $ 46,555 $ (4,945) $
Total revenues 46,555 51,500 (4,945)
Excess (Deficiency) of Revenues
over (under) Expenditures 51,500 46,555 (4,945)
Other financing sources (uses)
Transfers out (51,500) (46,555) 4,945
Total other financing sources (uses) (46,555) (51,500) 4,945 Net change in fund balance - - -
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year - $ - $ - $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual CDBG Grant Special Revenue Fund
Fiscal Year Ended June 30, 2025
-119-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 232,523 $ 328,651 $ 234,348 $ (94,303) $ Total revenues 328,651 232,523 234,348 (94,303)
Expenditures
Current:
Community development 157,523 248,087 148,784 99,303
Total expenditures 248,087 157,523 148,784 99,303
Excess (Deficiency) of Revenues
over (under) Expenditures 75,000 80,564 85,564 5,000
Other financing sources (uses)
Transfers out (75,000) (171,128) (85,564) 85,564
Total other financing sources (uses) (171,128) (75,000) (85,564) 85,564 Net change in fund balance - (90,564) - 90,564
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year - $ (90,564) $ - $ 90,564 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Citizens Option for Public Safety Special Revenue Fund
Fiscal Year Ended June 30, 2025
-120-
Variance with
Final Budget
Original and Actual Positive
Final Budget Amounts (Negative)
Revenues
Intergovernmental $ 170,000 $ 200,769 $ 30,769
Total revenues 170,000 200,769 30,769
Excess (Deficiency) of Revenues
over (under) Expenditures 170,000 200,769 30,769
Other financing sources (uses)
Transfers out (170,000) (200,769) (30,769)
Total other financing sources (uses) (170,000) (200,769) (30,769) Net change in fund balance - - -
Fund balance at beginning of fiscal year - - -
Fund balance at end of fiscal year $ - -$ $ -
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual AQMD Special Revenue Fund
Fiscal Year Ended June 30, 2025
-121-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 86,750 $ 86,750 $ 88,089 $ 1,339 $
Investment income 17,115 19,000 31,067 12,067
Total revenues 105,750 103,865 119,156 13,406
Expenditures
Capital outlay 250,000 68,713 31,213 37,500
Total expenditures 68,713 250,000 31,213 37,500
Net change in fund balance (146,135) 37,037 87,943 50,906 Fund balance at beginning of fiscal year 604,351 604,351 604,351 - Fund balance at end of fiscal year 458,216 $ 367,078 $ 692,294 $ 325,216 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Measure M2 Special Revenue Fund
Fiscal Year Ended June 30, 2025
-122-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 1,583,947 $ 1,501,145 $ 1,418,804 $ (82,341) $ Investment income 57,550 100,000 63,445 (36,555)
Total revenues 1,601,145 1,641,497 1,482,249 (118,896)
Excess (Deficiency) of Revenues
over (under) Expenditures 1,641,497 1,601,145 1,482,249 (118,896) Other financing sources (uses)
Transfers out (2,132,509) (3,555,399) (503,787) 3,051,612 Total other financing sources (uses) (3,555,399) (2,132,509) (503,787) 3,051,612 Net change in fund balance (491,012) (1,954,254) 978,462 2,932,716 Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year (491,012) $ (1,954,254) $ 978,462 $ 2,932,716 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual SB-2 Special Revenue Fund
Fiscal Year Ended June 30, 2025
-123-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 180,000 $ 95,000 $ 91,327 $ (3,673) $ Total revenues 95,000 180,000 91,327 (3,673)
Expenditures
Current:
General government 105,000 373,000 373,760 (760)
Total expenditures 373,000 105,000 373,760 (760)
Excess (Deficiency) of Revenues
over (under) Expenditures 75,000 (278,000) (282,433) (4,433) Other financing sources (uses)
Transfers in - 278,000 - (278,000)
Total other financing sources (uses) 278,000 - - (278,000) Net change in fund balance 75,000 (556,000) (282,433) 273,567 Fund balance (deficit) at beginning of fiscal year (292,297) (292,297) (292,297) - Fund balance (deficit) at end of fiscal year (217,297) $ (848,297) $ (574,730) $ 273,567 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Mortgage Assistance Program Special Revenue Fund
Fiscal Year Ended June 30, 2025
-124-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income 1,245 $ 2,500 $ 4,546 $ 2,046 $
Total revenues 2,500 1,245 4,546 2,046
Net change in fund balance 1,245 2,500 4,546 2,046
Fund balance at beginning of fiscal year 85,654 85,654 85,654 - Fund balance at end of fiscal year 86,899 $ 88,154 $ 90,200 $ 2,046 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual PEG Special Revenue Fund
Fiscal Year Ended June 30, 2025
-125-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 130,000 $ 130,000 $ 142,904 $ 12,904 $
Investment income 3,475 9,100 17,038 7,938
Total revenues 139,100 133,475 159,942 20,842
Expenditures
Current:
General government 89,335 122,267 75,358 46,909
Capital outlay 3,600 22,931 16,126 6,805
Total expenditures 145,198 92,935 91,484 53,714
Net change in fund balance 40,540 (6,098) 68,458 74,556 Fund balance at beginning of fiscal year 335,741 335,741 335,741 - Fund balance at end of fiscal year 376,281 $ 329,643 $ 404,199 $ 74,556 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Road Maintenance and Rehabilitation Special Revenue Fund Fiscal Year Ended June 30, 2025
-126-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental 1,784,325 $ 1,763,630 $ 1,856,941 $ 93,311 $ Investment income 21,960 16,700 28,737 12,037
Total revenues 1,780,330 1,806,285 1,885,678 105,348
Excess (Deficiency) of Revenues
over (under) Expenditures 1,806,285 1,780,330 1,885,678 105,348 Other financing sources (uses)
Transfers out (1,817,991) (3,398,046) (1,666,829) 1,731,217 Total other financing sources (uses) (3,398,046) (1,817,991) (1,666,829) 1,731,217 Net change in fund balance (11,706) (1,617,716) 218,849 1,836,565 Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year (11,706) $ (1,617,716) $ 218,849 $ 1,836,565 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Park In-Lieu Capital Projects Fund
Fiscal Year Ended June 30, 2025
-127-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income 35,175 $ 35,175 $ 82,458 $ 47,283 $
Developer participation - - 42,760 42,760
Total revenues 35,175 35,175 125,218 90,043
Excess (Deficiency) of Revenues
over (under) Expenditures 35,175 35,175 125,218 90,043
Other financing sources (uses)
Transfers out - (75,000) (2,808) 72,192
Total other financing sources (uses) (75,000) - (2,808) 72,192 Net change in fund balance 35,175 (39,825) 122,410 162,235 Fund balance at beginning of fiscal year 1,427,620 1,427,620 1,427,620 - Fund balance at end of fiscal year 1,462,795 $ 1,387,795 $ 1,550,030 $ 162,235 $
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Lighting and Signal Project Improvements Capital Projects Fund Fiscal Year Ended June 30, 2025
-128-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income $ 16,300 $ 35,000 $ 36,278 $ 1,278
Total revenues 16,300 35,000 36,278 1,278
Excess (Deficiency) of Revenues over
(under) Expenditures 16,300 35,000 36,278 1,278
Other financing sources (uses)
Transfers in 189,063 256,787 144,914 (111,873)
Transfers out (200,000) (655,211) (143,092) 512,119
Total other financing sources (uses) (10,937) (398,424) 1,822 400,246 Net change in fund balance 5,363 (363,424) 38,100 401,524 Fund balance at beginning of fiscal year 667,450 667,450 667,450 - Fund balance at end of fiscal year $ 672,813 $ 304,026 $ 705,550 $ 401,524
City of Yorba Linda
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Master Plan of Drainage Capital Projects Fund
Fiscal Year Ended June 30, 2025
-129-
Variance with
Final Budget
Budgeted Amount Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income 83,025 $ 125,000 $ 310,138 $ 185,138 $ Total revenues 125,000 83,025 310,138 185,138
Excess (Deficiency) of Revenues over
(under) Expenditures 83,025 125,000 310,138 185,138
Other financing sources (uses)
Transfers out (80,000) (4,245,477) (475,103) 3,770,374
Total other financing sources (uses) (4,245,477) (80,000) (475,103) 3,770,374 Net change in fund balance 3,025 (4,120,477) (164,965) 3,955,512 Fund balance at beginning of fiscal year 6,898,006 6,898,006 6,898,006 - Fund balance at end of fiscal year 6,901,031 $ 2,777,529 $ 6,733,041 $ 3,955,512 $