HomeMy WebLinkAbout1-2018 City of Orange - CAFR FY 18� Cityof e
Ca{ifornia
1962
Oran3e City Counci(
MAYOR !'RO TEM
MARK A. MURPI IY
COUNCJL\1EMBER
MIC! IAEL ALVAREZ
MAYOK
TERESA ""J l"JA» !>MITH
COUNCIL\ll'..\IBER
FRED M. WIIITAKER
CO UNC l LM 1: .. M BE R
KIMDERLEE NICI IOLS
City of Orange
California
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Prepared by:
FINANCE DEPARTMENT
Will Kolbow, Director of Administrative Services
:E(ected O_fficiafs
CITY TREASURER
RICIIARD A. RO!!M
ClTI' Cl.ERK
MARY MURPI IY
Introductory Section
CITY OF ORANGE
COMPREHENSIVE ANNUAL F1NANCIAL REPORT
FISCAL VF.AR ENDED JUNE 30, 2018
TABLE OJ/ CONTENTS
INTRODUCTORY SECTION: Page No.
Table of Contents........ .. i
Letter of Transmittal .. v
Organization Chan ix
Elected Positions and Administrative Personnel x
FINANCIAL SECTION:
Independent Auditors" Rcpon . . 1
Management's Discussion and Analysis {Required Supplementary Informauon) . 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement nf Net Pomion. . 15
Stetemern cf Activities 16
Fund Financial Statements:
Governmental Funds:
Balance Sheet.. , 20
Reconciliation of the Balance Sheet ofGovemmen!al Funds to the
Statement of Net Position 23
Statement of Revenues, Expenditures and Changes in Fund Ba.lances 24
Reconciliation oft he Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 26
Proprietary Funds:
Statement of Net Position 27
Statement of Revenues. Expenses and Changes in Fund Net Pommn 28
Statement of Cash Flows 29
Fiduciary Funds:
Statement of Fiduciary Net Position 30
Statement of Changes in Fiduciary Net Position - Private-Purpose Trust
Funds - Successor Agency Trust Fund .. . 31
Notes to the Financial Statements....................................... . 33
•
TABLE 01<' CONTENTS
(Continued)
Required Supp!ememary Information:
Budgetary Comparison Schedule - General Fund.... . . 80
Budgetary Companson Schedule - Proposition 172 81
Budgetary Comparison Schedule - Federal, State, and Local Grants 82
Budgetary Comparison Schedule-I lousing Successor............ . 83
Budgetary Companson Schedule - Measure M 85
Pension Plan
Miscellaneous Plan:
Schedule of Changes in the Net Pension Liability and Related Ratios 86
Schedule of Plsn Contributions 88
Safety Plan:
Schedule of Changes in the Net Pensmn Liabthty and Related Ratios 90
Schedule of Plan Conmbuuons 92
OPEB Plan
Schedule ofTotal OPEB Liability and Related Ratios 94
Notes to Required Supplementary lnformattcn 95
Supplementary Schedules:
Non-Major Governmental Funds:
Combining Balance Sheet . . . 97
Combining Statement of Revenues, Expenditures aml Changes in
Fund Balances............. . 98
Special Revenue Funds:
Combining Balance Sheet - Non-Major Special Revenue Funds 100
Combining Statement of Revenues. Expenditures and Changes m
Fund Balances - Non-Major Special Revenue Funds............... . . 102
Budgetary Comparison Schedules:
Transportation System Improvement Program (TSIP) 104
EMT Trnnspon . . l 05 oe, Tax 106
Air Pollution Reducuon 107
Asset Seizure 108
O.C.P.T. Building Maintenance 109
Land.scape Maintenance Assessment Distncls .. . . I l O
I% PEG Program l 11
Housing in Lieu l 12
Cen.ified Access Specialist Program (CASp) Ccrnflcatiun & Training 113
Road Mamtcnancc Rehabilitation Account (RMRA) l 14
Capital Project Funds:
Combming Balance Sheet - Ncn-Major Caphal Project Funds 116
Combining Statement of Revenues. Expendi1ures and Changes 111
"
TABLE OF CONTENTS
(Continued)
Fund Balances - Non-Major Capital Project Funds 118
Budgetary Comparison Schedules:
Capital Improvement 120
Parle Acquisition, Development and Maintenance 121
Fire Facilities Fees ....•....••......•....•....••....•..............•..................................... 122
Police Facili1ies Fees 123
Libnuy Facilities Fees 124
Drainage District 125
Internal Service Funds:
Combining Statement of Ne! Position 128
Combining Statemcnt of Revenues, fupenscs and Changes in Net Position.130
Combining Statement of Cash Flows 132
Agency Funds:
Combining Statement of Changes in Assets and Liabilities-Agency Funds .136
SfA TISTICAL SECTION:
Net Position by Component - La.st Ten Fiscal Years 140
Changes in Net Position - Governmental Activities - Last Ten Fiscal Years 142
Changes in Net Position - Business-type Activities - La.st Ten Fiscal Years 144
Fund Balances of Governmental Funds - La.st Ten Fiscal Years 146
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 148
Assessed Value and Estimated Actual Value of Taxable Property - La.st Ten
Fiscal Years 150
Direct and Overlapping Property Tax Rates - La.st Ten Fi!oeal Years 152
Principal Property Taxpayers - Current Year and Nine Year:s Ago 154
Property Tax Levies and Collections - Last Ten Fiscal Years 155
Ranos of Ouistanding Debt by Type- La.st Ten Fiscal Years 156
Ratios of General Bonded Debt Ouistanding - Lasr Ten Fiscal Years 158
Direct and Overlapping Debt t 61
Legal Debt Margin fnformation - Last Ten Fiscal Years 162
Pledged-Revenue Coverage - Last Ten Fiscal Years l 64
Demographic and Economic Statistics - Last Ten Fiscal Years 165
Principal Employers - Current Year and Nine Years Ago 166
Full-time EquivalentS by Function - Last Ten Fiscal Y= 167
Operating Indicators by Department - Last Seven Fiscal Ycars 168
Capital Asset Statistics by Department - La.st Seven Fiscal Years 170
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CITY OF ORANGE
FINANCE DI.R£CJOR
December 10,2018
(714)7#-llJ.5 FAX: (714) 74'-zz.c.!I
To the Honorable Mayor, City Council and City Manager of the City of Orange, California:
The Comprehensive Annual financial Repon (CAFR) of the City of Orange (City), as prepared
by the City's Finance Department, is hereby presented for your mformatlcn. State Jaw requires
that every general-purpose local government issue within six months of the close of each fiscal
year, a complete �et of audited financial statements. This report fulfills thlll requirement for the
fiscal year ended June 30, 2018.
Responsibility for preparation of the CAFR rests with the City's management In addition,
management assumes full responsibility for the accuracy, completeness, and reliability of the
infonnation conl.amed m this report, based upon a comprehensive framework of mtcmal controls
that have been established for this purpose. Because the cost of internal controls should not exceed
anticipated benefits, the objective is 10 provide reasonable, rather than absolute, assurance that the
financial statements arc free of any material misstatements. To the best of our knowledge and
belief, the enclosed data is accurate in all material respects and is reported in o. manner designed
to present fairly the financial position and results of operations of the Cny of Orange. All
disclosures necessary to enable the reader lo gain llfl understanding of the City's financial activities
have also been included.
The independent accounting firm of White Nelson Diehl Evans LLP (Auditors) performed the
annual financial audit. which was designed to meet the requirements of Government Auditing
Standards. The Auditors have issued an unmodified ("clean") opinion on the City's financial
statements for the year ended June JO, 2018. The Independent Auditors' Report on the CAFR is
included at the front of the financial section of this report.
The Management Discussion and An.i.lys1s (MD&A) immediately follnws the Independent
Auditors' Report and provides a narrative introduction, overview, and analysis of the basic
financial statements. The MD&A eomplcmems this letter of transmittal and should be read in
conjunction with it.
PROFILE OF THE CITY OF ORANGE
The City of Orange, with a present population estimated at 141,952 is situated in central Orange
County, approximately 32 mllessoutheast of Los Angeles. The City's land area is 24 square miles.
Its planning area or "sphere of influence" ts 62 square miles.
v
ORANOf CIVIC CfNTCR =·-"'-·- JOO e. CHAPMAN AVENUE OIIANOC, CA 92111·1501
The City WllS incorporated in 1888 under the general laws of Lhe State of California. Under a
council-manager form of government, a mayor is elected every two years and four council
members are elected to four-year terms alternating on a two-year basis. The City Manager, who is
Lhe administrauve official oflhe City, is appointed by the City Council.
The City provides a ful! range of services for its ciuzens. These services include police, fire,
paramedic, emergency transportauon, hbrary, recreation Md parks, senior services, planning and
development, stn:et improvements and lighting, and general administration. The Clty also operates
a water utility and contracts for refuse eollectioo services. In addition, Lhc City provides aid to its
citizens in the form of residential and commercial rehabilstanon loans and economic development
The former Onmge Redevelopment Agency was a component umt of the City until the
implementation of AB IX 26, which dissolved California Redevelopment Agencies effective
January 31, 2012 (dissolution date). All funds remaining as of that dere were transferred to the
Successor Agency public trust fund. The City, per Resolution No. 10625, is the Successor Agency
to the former Redevelopment Agency. The Successor Agency's {City Couccuj approvals ese
subject to review and confirmation by the Oversight Boll!"d (OB) and State IRpartment ofFmance
(DOF). All lransllctions effective from the dissolution date and through the "wind- down" period,
will be reported in the Successor Agency trust fund
The annual budget is adopted by July I" for all funds of the City on a basis consistent with
generally accepted accounting principles. The budget is monitored to ensure compliance with
legal provisions embodied in the appropriated budget as approved or amended by the City Council
throughout the ye11T. Cny staff is responsible for monitoring the epprcpriated budgets for al! funds.
The budget is prepared by fund, department (e.g. police), and activity (e g. patrol). Transfers of
appropriations between funds, bcrwcen departments within a fund, and between capital outlay or
debt service and another object group classification within a department, require City Council
approval. All other transfers of appropriations can be made wilh City management approval.
LOCAL ECONOMY
The local economy in the City of Orange has contmued to improve since the Great Recession.
Several key indicators of economic activity, including property tax, transient occupancy tax,
licenses and permits, and fees for services, ended tbc year above budget. The C11y's largest
revenue source, sales tax, decreased by SI.I million, or 2.6%, in the General Fund from Lhe prior
Fiscal Year (FY) primarily due to reporting issues with the State's new collection system. Despite
delayed and missing payments, higher fuel prices and growth m building and construction
generated more sales tax revenue than in the pnor year, p.utially offsetting the overall reduction.
General Fund property 18.)[ revenue, increased S2.5 mil hon over the prior year. Assessed valuations
continue to climb following the decreases during the Recession, and a robust real estate market
has resulted m the revaluation of properties as they are transfermi to new owners. In addition, Lhe
General Fund will continue to see an increase ill residual revenues as a result of the dissolution of
the Redevelopment Agency and as activities of the Successor Agency "wind-down".
Interest rates decreased slightly in FY 18 with investments earning an average yield of 1.53%.
Rates are expected to increase slightly in FY 19.
RELEVANT FTNANCIAL POLICIES
Historically, the City's Reserve Policy provided for as much as a 25% set-aside of budgeted
General Fund operating expenditures as a designation of fund balance (Designated for
Contingencies), which is included in Unassigned furnl balance. This policy was estabhshed 10
provide a contingency in case of a catastrophic, or other severe economic, event. The current set-
aside is 18% of FY 19 budgeted General Fund operating expenditures.
LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES
Pursuant to the California Public Employees' Pension Reform Act of 201) (PEP RA) and related
statutory changes, the City implemented a two-tiered retirement system with the Cahfomia Public
Employees Retirement System (Ca)PERS). This system provides for a second tier of reduced
retirement benefits, elTcctive for employees hired after January I, 2013 who are also new to
CalPERS. It includes a retirement benefit of2% at 62 for mssce!laneous employees and 2.�A, at
57 for safety employees, and requires employee contribution rates of6.75% and 12%, respectively.
Over the long term, this reduced benefit tier is designed to decrease retirement cos\s for the City.
As of June 30, 2018, there are 195 of the City's 614 covered employees (31 8%) al this lower ucr
of retirement benefits.
Suitt Tax Sharing Prni:ram! In May 2013, the City Council adopted Ordinance No. 4-13
establishing a Sales Tax Sharing Program as a new economic development incentive to promote
business growth and job creation, and 10 enhance the economic base through increased sales tax
revenue in the Cny of Orange. Under the Sales Tax Sharing Program, the City may enter into a
Participation Agreement with the owners of existing or new local businesses that generate sales
tax revenue to provide for economic development incentives. Currently, the City has Participation
Agreemen\s with two entities.
Providing for Internal Service Fundi11g {!SF); The City maintains several Internal Service
Funds (lSF). The City is working to reduce reserves in the Workers' Compensation and General
L10bility funds as it strives to close out a number of older claims. Allocations to other ISFs,
including the Employee Accrued Liability Fund (see below), Equipment Maintenance, Equipment
Replacement, Information Systems, and Computer Replacement funds, ensure adequate future
funding for each of those respective functions
Retirement Cost Iecreases: A5 pan of their plan to fully fund all reurement plans within 30 yeara,
C111PERS established a phm to dramatically increase contribution rates over a five-year period,
beginning in FY 16. In addition, changes in actuarial assumptions based on life expectancy have
increased retirement costs for el! agencies. in FY 13, City Council established a contingency
reserve in the Employee Accrued Liability Fund which set-aside monies to be used to offset future
retirement costs. While these funds have not ycl been used, S6.2 million has been set aside as of
June30,2018.
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ACKNOWLEDGEMENTS
The preparation of the CAFR could not have been accomplished without the efficient and
dedicated service of the Fin1111Ce Department staff We would like to express out appreciation to
a.II members of the Department who assisted 1111d contributed to the preparation of this report,
particularly the Accounting division's financial reporting teem. We also appreciate the assistance
and support received from the Investment Advisory Corrunittee and City depanments in planning
and conducting the financial operations of the City during this fiscal year, as well as the Mayor
and Councilmcmbcnl for their �teadfast support for maintaining the highest standards of
professionalism in the management of the City's finances.
Respectfully submitted,
William M. Kolbow, CPA
Director of Administrative Services
Katrin 0. Bandhauer, CPA
Assistant Finance Director
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CITY OF ORANGE
Organization Chart at June 30, 2018
( CITIZENS OF ORANGE J
' '
c,iy Clerk Teresa "Tita" Smith, Mayor City 1 re�urcr Fred Whitaker, Mayor pro icm
Mark Mwphy, Councilmember
Mike Alva:n, CouDCilmembn
. Kimberlee N1cllols, Councilmcmber
I I
/
City Attorney City Manager Commwions &
Committees
AssistaDt City Manager Fm,Cbicr
' Community Dcvc:!opmcnt L Library Services
Director Direo.lor
Community Services � Human Resources!Ernplo)= Relation&
D1teelor Director
Police Chief � Administn.livc, Services Director
l'ub!ic Works """""
ELECTED POSITIONS
Teresa "Tita" Smith Mayor
Mark A Murphy . .................................... . ............ Mayor Pro Tern
Fred M. Whitaker Council Member
Kimberlee Nichols Council Member
Michael Alvarez................... .. Council Member
Richard A. Rohm............ .. City Treasurer
Mary Murphy Crty Clerk
ADMINISTRATIVE PERSONNEL
Riek Ono City Manager
Wayne Winthers City Attorney
Tom Kisela Police Chief
Christopher Cash /" Public Works Director
Doug fackincr Fire Chief
Will Kol bow ..•.................................................. Adnumstrative Services Director
Bonme Hagan....................... . . .. Community Services Director
William Crouch Community Development Director
Dave F. Curtis Library Services Director
Financial Section
INDEPENDENT AUDITORS' REPORT
To the Honorable City Council
of the City of Orange
Orange, California
Report on the Finan cl al Sta1emeot&
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund infonnarion of the City of
Orange, California (the City), as of and for the year ended June 30, 2018, and the related notes to the
basic financial statements, which oollectively oompnse the City's basic financial statements as listed in
the table of contents.
Management's ResponslbU!ty for the Flnanclal Statemenu
Management is responsible for the preparation and fair presentation of these financial statements m
accordance with accounting principles generally accepted in the United States of America; this
includes the design, impkmentation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from matenal misstatement, whether due to
fraud or ermr.
Auditors' Responsibility
Our responsibility is to express opmmns on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the stand11rds applicable to financial audits oontained in Govt!mmcnl A.ud,tmg Standards,
issued by the Comptroller General of the United States. Those standards require that we p!an and
pcrfonn the audit to obtain reasonable 1LSS11rancc about whether the financial statements are free from
material misstatement.
An audit involves perfonniog procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of matena! misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant 10 the City's
preparation and fair presenunen of the financial statements in order to design audit procedures that arc
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City's internal control. Acoordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the nvcrall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
2875 Michcllc Driv,:, Suite 300, Jrvin,,, CA 92606 • Tel, 71-4.978 1300 • Fu: 714.978 7893
Opinions
ln our opinion, the fwancia! statements referred to above present fairly, in all material respects, the
respective fioancial position of the governmental activities, the business-type activities, each maJor
fund, and the nggregnte remaining fund information of the City, as of June 30, 2018, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended m
accordance with accounting principles generally accepted in the United States of America.
Emphui1 of Matter
M discussed in Notes I, 18, and l9E to the fwaacial statements, the City adopted Governmental
Accounting Standards Board's Statement No. 75, Accounting and Finonciol Reporting for
Postemployment Benefits Other Thon Pensions, which required retrospective application resulting in a
reduction of previously reported net position. Our opinions are not modified with respect 10 this matter.
Other Matters
Report on Required Supplementory lnfonnorion
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, Budgetary Companson Schedules - General and Major
Special Revenue Funds, the schedules of changes in net pension liability and related ratios, the
schedules of plan contributions, and the schedules of changes in the total other post-employment
benefit (OPEB) habihty and related ratios, identified as Required Supplementary Information (RSI) in
the accompanying table of contents, be presented to supplement the basic financial statemenl5. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, wbo considers ii to be an essential part of fmancial reporting for placing
the basic financial statements in an appropriate operational, ccononuc or historical context. We have
applied certain limited procedures to the RSI in accordance with auditing standards generally accepted
in the United States of America, which consisted of inquiries of management about the methods of
p«:pari..ng 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 the
audit of the basic financial statementll. We do not express an opinion or provide any assurance on the
RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other lnfonnation
Our audit was conducted for the purpose of forming opimons on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining and
individual non-major fund financial statements and schedules (supplementary information), and
staustical sccuon, as listed in the table of contents, are presented for purposes of additional analysis
1111d are not a required part of the basic financial statements.
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Otlicr Information (Conrlnued)
1bc supplementary wformatioo, 88 hsted m the table of contents, is the responsibility of management
and was derived from and relates directly to the underlying sccounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic fwancia! statements and cenain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing Hand.ards generally accepted in the United States of
Amcnca. In our opimon, the supplementary information is fairly stated in all matena! respects in
relation to the basic financial statements tak.co as a whole.
The introductory and statiH:ical sections have not been subjected to the auditing procedures applied w
the audit of the basic fwancial statements and, accordingly, we express no opmion or provide aoy
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 20!8, on our consideranon 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 to describe lhe 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 intern.al control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government A11d11ing Standards in considering the City's internal
control over financial «.-portwg and compliance.
Irvine, California
December !O, 2018
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Management'a Diacuaaion and Analyaia
MANAGF.MENT'S DISCUSSION ANU ANALYSIS
The purpose of this Management's Discussion and Analysis is to interpret and summarize the
financial changes in the City of Orange Financial Statements for Fiscal Year 2017-1 B. This
analysis will focus on the significant changes in an effort lo explain the City's overall financial
condition. We encourage readers to consider the information presented here in conjunction
with the sdditional mformation fumisllcd in our Lener of Transmittal, Notes to the fUUUtcial
Statements, and the Statistical Section.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an mtrcdccucn to the City's Basic
Financial Statements, which are comprised of three components: (1) Government-wide
Financial Statements; (2) Fund Financial Statements; and (3) Notes to the Financial
Statements. In addition 10 the Basic Financial Statements and required information, th.is repost
also contains other supplementary information.
Government-wide Financial Statements. 'The Government-wide Financial Statcmcms are
designed to provide readers with a broad overview of the City's financial position, in a manner
sunilar to that of a private-sector business. These statements are reported on the full accrual
basis of accouming. Thus, revenues and expenses 11/"e reported for some items that will nol
affect cash flows until future fiscal periods.
The Government-wide Financial Statements separate Governmental Activities that are
principally supported by taxes and revenues from other agencies, from B11siuess-type
Activities that ore intended 10 recover all, or o. significant portion, of their costs through user
fees and charges. The Governmental Activities of the City include General Government,
Public Safety, Public Works, Community Development, Parks and Library, Economic
Development, and Interest on Long-Term Debt, when applicable. The City's two Business·
type Activities are Waler and Sanitation.
The Statement of Net Position presents information on all of the City's assets and deferred
outflows of resources, and liabilities and deferred inflows of resources; the difference between
the four is reported as net position. Total IIS5Cts mc!ude al! capital items including
infrastructure. Evaluating increases or decreases in net position over time will serve as a
useful indicator ofwbether the financial position oftbc City is improving or declining.
The Statement of Activities presents information on the net cost of each governmental
function (activity) during the fisc.al year. This statement also identifies the nmount of general
revenues needed to fully fund each goverrunental function.
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 demonstrate compliance
with finance-related legal requirements. A!\ of the funds of the City Cll{I be divided into three
categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds
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Governmental Funds (Genera! Fund, Special Revenue, Debt Service and
Capital Projects Funds) are used to account for the same functions reported as
Govenunental Activities in the Government-wide Financial Statements.
However, unlike the Government-wide Financial Statements, Fund Financial
Statements focus on short-tcnn inflows and outflows of spendable resources.
These funds ore reported using rbe modified accrual basis of accounting, which
measures cash and all other financial assets that can readily be converted to
cash. This information is useful in evaluating the City's short-term financmg
requirements.
The focus of the Fund Financial Statements is narrower !han that of the
Government-wide Financial Statements. The governmental fund Balance
Sheets and the Statement of Revenues, Expenditures, and Changes in Fund
Balance, require a reconciliation to facrlitate the comparison between the Fund
Statements and the Government-wide Statements. This reconciliation is
required because the Government-wide Statements are prepared on the full
accrual basis of accounting while the Fund Statements are prepared on the
modified accrual basis of accountmg. Tht..'SC reconciliations can be found in
the Fund Financial Statements on pages 23 and 26.
Proprietary Funds are Enterprise and lmemal Service Funds. The City uses
Enterprise Funds to account for its Water Utility and Sanitation services.
!mcmal Service Funds are used to accwnulate and allocate costs internally to
various functions. The City uses Internal Service Funds to allocate equipment
expenses, equipment replacements, major building improvement,;, infonnarion
systems, computer replacements, employee accrued liability, and workers'
ccmpensetlcn, liability and dental self-insurance costs.
All of the Internal Service Funds are combined into a single, aggregated
presentation in the Proprietary Fund Financial Statements. Individual fund
data for the Internal Service Funds is provided in the form of combining
statements found on pages 128-133.
Fiduciary Funds (Agency and Private-Purpose Trust Funds) are used to
account for resources held for the benefit of panics outside oft he City such as
the collection of charges and fees for other governmental agencies. The
Fiduciary Fund resources are not available to support City programs. Fiduciary
Funds are reported in Fiduciary Fund Statements of the basic Financial
Statements section and are also reported m the Supplementary Schedules
section.
Notes lo the Financial Statements. The notes provide additional infonnation that is essential
to the reader for a full understanding of the data provided in the Government-wide and Fund
financial Statements.
Other Information. In addition to the Basic Financial Statements and accompanying notes,
this report also presents certain Supplementary Information such es Budgetary Comparison
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Schedules for the General Fund and all Major Special Revenue Funds, Sclwdules of Changes
in the Net Pension Liability and Related Ratiosnnd Schedules of Plan Contributions (Required
Supplementary Information). In addition, Budgetary Comparison Schedules for all of the
Non-Major Special Revenue, Capita! Projects Funds, and Combining Non-Major Statements
are provided (Supplementary Schedules). The Statistical Section provides user:s with
SU!hstical information covenng five categories, including financial t:rends, revenue capacity.
debt capacity, dcmograpltic and economic information, end operating infonnation.
GOVERNMENT-WIDE FINANCIAL IDGHLIGIITS AND ANALYSIS
City of Orange
Net Position
(cxprcMCd in lhoo.sands of dollon)
Govcmmc:nta! 80!IMSS-!ype
Acdvi!� �ivi!ies Total
17-18 16-17 17-18 16-17 11-18 16-17
Cumnf and other -· $ 154,471 110,928 25,6,7 25.2'7 U0,167 196,185
C.pllll assets 6SB 706 643,2W [)2 925 ])4 137 791631 777J.%
Total WW 112177 !14187 ISB1SB2 IS9 394 971 4S9 973J81
O.forrcd ou1flnw1 of -- 55 091 ""' .... l 969 S9497 49817
Long term liabilinn
outstanding 17,llS 16,27.! "' "' 17,SB6 16,838
N!'I pension liabiliiy 243,918 220,772 20,079 18,699 263,997 239,471
Net OPEB bab!Uiy 24,956 l l .274 6,318 31,274 11,274
Other llallllltles 23986 20735 6319 '"' 30305 28 281
Total liabilities 309 99S 269 051 ll 167 26 811 341162 295 llM
Deferred inflows of ·=· 7629 8478 ••• "' 8J47 8 719
N!'I !nvestmem m
capltalasseis 6SS,706 643,2S9 !32,925 134,)37 791,631 777,396
Restncted JB,844 43,l7S 31,&44 43,17S
Unrestricted !147J06l (103,910) {l,722) 2 174 (lS0,928} (l0!,7l6)
Toto! nel J""ilion s SS0,344 $82,524 [29,203 136.Jl I 679,SO 718.DS
Governmental Activities:
Assets exceeded liabilities at the close of the fiscal year by $503 million. The majority of this
excess is due to the capitalization of the City's infrastructure per GASB Statement No. 34,
including streets, sidewalks, rights-of-way, street lights, traffic signals, sewer system, stonn
drain system, wells and bridges.
Total asseu remained level at $813 million compared to $814 million in the prior year.
Total liabilities increased by $41 million due mainly 10 an increase in the City's net pension
liability and net OPES liability.
7
The restricted ponion ofthc City's net position ($38.8 million) represents resources that arc
subject to legal outside n:striclions by law, constitution, or enabling !egis!ation, and funds
commined by City Council for specific purposes.
Business Type Activities:
Total Assets remained level Ill $158.6 milhon compe.rcd to $159.4 million in the prior year.
Total liabilities increased by $6.4 million, Bild net position decreased by $7.1 million due
mainly to an increase in the City's net pension liability and net OPEB liability.
City ofOrani:c
Changes in Ne! Position
{e�pressed in tbousands of dollan)
Govemmemal Bu,;,ncs,;.iypc
Acrivmes ActiviUOJI Tow
ill.I l.HZ ill.I l.HZ ill.I l.HZ
Program Rc,tob•
Clwys fur ser;iccs $ 17,391 16,903 40,149 ll,066 H,540 49,969
Opcra1ing grant< ond
comribution• 4,562 4, 161 "' 4,671 4, 161
Copillll �i., and
contributions 4,389 7,228 4,3119 7,22&
Genc,..I Rcv•uu
Property Taxes 42,385 39,908 42,lSS 39,908
SalOSTIXts 45,082 46, 102 45,08:2 46,102
OlherTIXcs 1,339 8,207 8,339 B,207
SW• Revenue: °""' �829 13 083 " " 6870 13 176
ToLo! Reva. .. , 128 977 135 592 40J911 33 159 169J76 1611751
E1penses
General government 12,470 12,901 12,470 12,901
Publk Safely 91,222 74,753 91,222 74,75]
Public Works l!,449 21,175 18,449 21,)75
Communliydev. 5,420 4,754 5,420 4,754
Pllrks and library 18,243 15,632 !8,243 15,632
Economic deYCIO!l<Mnt 2,66! 2,37] 2,668 2,371
Salllwloo 7,927 7,761 7,927 7,761
Wa1er 33 414 """ 33414 292'>4
Total Expcmes 148,472 131,556 41,34! 37,055 189,SJJ 168,6'1]
Change in r..rt pmilion (19,495) •.006 (1,042) (l,896) (20,337) '" Net JJOlilion a1
beginning of year, as
n::slaltd 569 8]9 S78J18 130 245 140207 '"'"' 718 72S
N� po!!ilion at end of ,..,, ss,o,344 '82 S24 129 203 136,311 679 547 711 835
8
As indicated in the table on the previous page, for the 2017-18 Fiscal Year, Property taxes
increased 6 2%. lbc increase was due to higher assessed property values and more property
tll)[ increment distnbuted from the County of Ornnge for the Successor Agency.
Intergovernmental revenue decreased 7.3% due to II decrease in revenue for reimbursable
capital project costs, which was offset in part by an increase in gas tax revenue in the new
RMRA Road Maintenance and Rehabilitation Fund. Fines and forfeitures increased by 8.6%
mam!y due to the fact that the City turod a new ticket processing service that is a.) more
streamlined in their collection process, resulting in a faster rumaround time for issuance and
payment of tickets and b.) more aggressively following up on collection of past due payments.
The S6.7 million decrease in Other revenues is due to the fact that the 2016-17 revenue
included a one-time revenue from the sale of a vacant lot
GENERAL FUND SALES TAX REVENUE
Fiscal Yean 2009-2018
"'-"""·"""
no.000000
.,,,,,._
�--
• ••• ••• ••• "" ••• • •• ••• ••• • ••
Sales lllX is the City's largest revenue source and is directly related to genernl economic
conditions within the City. The historical change in General Fund sales tax revenue, excluding
Measure Mand Proposition in sales tax revenues (which are resmctcd for transportation and
public safety purposes), is presented in the bar graph above.
9
GOVERNMENT AL FUND IUGIILIGUTS AND ANALYSIS
The groph below shows a summary of Governmental Fund type revenues. This includes
revenues from the General Fund, Special Revenue Funds, and Capital Project Funds for the
Fiscal Year ended June 30, 2018.
GOVERNMENT AL FUNDS REVENUES
Tbc graph below shows a sununary of Governmental fund type revenues. llus includes
revenues from the General Fund, Special Revenue Funds and Capital Project Funds for the
fiscal Year ended June 30, 2018. -- ]71'!1,
OttletT• ... •.2,,. Uae of ""'-lo" & P<ope,iy
1361' Chlrgnf<lfs.Mc:n -- F,.-..,r ...
'""' 2�
INCREASE (DECREASE)
FROM 16-17
17-lll 16-17
REVENUE SOURCE AMOUNT AMOUNT AMOUNT %
Property taxes S 42,3115,253 39.907,1169 2,477,384 6.2
Sales and use taxes 45,082,151 46,102,329 {l,020,178) (2.2)
Other taxn S,507,607 5,452,730 54,877 LO
Franch,1:M: fees 2,831,)78 2,755,030 76,348 , .•
Licenses and p,.:miits 4,836,841 4,966,017 (129,176) (2.6)
Use of money and J>roperty 1,753,319 1,572,433 180,886 ).6
Intergovernmental 9,016,736 9,727,861 (711,125) (7.3)
Charses for services and fees 10,712,&49 10,978,973 (266,124) {2 4)
fines and forfeitures l,852,674 l,706,291 146,383 B.6
Other =cnucs 4 783 149 11495612 (6,712,463) {58 3)
TOTAL Sl28,761,9S7 134 665,145 (519031188) (4.4)
10
GOVEN.NMENTAL FUNDS EXPENDITURES
Gene<;I
Government
PublkWoOO
7.6"
Community
Oeveklpmem ,,.
Economoc
�opment
1.6"
l'Yblic S..fety
57.5"
INCREASE (DECREASE)
FROM !6-J7
17-lll 16-17
FUNCTlON AMOUNT AMOUNT AMOUNT -"--
�ncral government Sl l,488,962 11,369,206 119,756 1.0
Public safely 75,704,854 72,292,753 J,412,10[ ,.1
Publicworl<.s 10,351,94& l0,099,229 252,7!9 ,,
Community development 4,545,422 4,651,614 ()06,192) {2.J)
Parks and library 14,575,737 13,835,002 740, 735 , .•
Ecor10m1c development 2,354,318 2,115,151 239,167 "" Cap!181 outlay 23 596 982 18601383 4 995 599 26.9
TOTAL S142,61S,223 132,964 338 9 653,885 7"
Overall expenditures increased by $9.6 million from the prior fiscal year. This increase was
due mam!y to an increase in capital expenditures and to minor increases in department operating expenditures.
II
1''UND BALANCE ANALYSIS OF THE GOVERNMENTAL FUNDS
As noted earlier, the City uses fund accounting to demonstrate compli,mce with finance-
related legal requirements.
Governmental Funds. The focus of the staternems presenting the Cny's governmental funds
is to provide information on the short·lcrm inflows, outflows, and balances of spendable
resources. Such information is useful in assessing the Cny's current flnanrlal requirements.
In particular, unassigned fund balance may serve as a useful measurement of a government's
net resources available for spending durmg the subsequent fiscal year.
At the end or the fiscal year, the City's governmental funds reported combined ending fund
balances of SI 10.3 million; a decrease of $!6 milhon as compared to the prior fiscal year's
fund balances. This decrease is due mainly to the current yeareapual expenditures of Measure
M seres tax funds and capital proJect funds accumulated in prior years. In addition. there wa.�
a transfer of$2 2 million from the General Fund to the Internal Service funds lO fund vehicle
replacements, computer replacement. and liability claims.
The General Fund is tbe ma;or operating fund of I.he Cuy. The total fund balance of tbe
General Fund was $34.8 million, a decrease ofS I million in the 2017-IS Fiscal Year.
Other General Fund lughlight� include:
• Unassigned fund balance of $34.8 milhon was 32% of total General Fund
expenditures.
• Acma! General Fund revenues decreased $1.6 nulhon. Recumng revenues increased
apprcxlmatcly $4.5 million. However, this was offset by a decrease of approximately
$6 million in one-time revenue received in the prior year for the sale of a vacant !ot.
• The General Fund's ongmal expenditure budget was increased throughout the year by
Cny Council actions iota ling $4 6 million or 4 I%.
• General Fund 11C1Ual expenditures totaled Sl09 nu!lion as compared with the ending
amended budget ofSl 15.3 million; a savings of$6.3 million. primarily due to unfilled,
budgeted posiuons tluougllout the City.
MaJor Special Revenue Funds highlights include:
• The $1.4 mi!Hon write down of loans receivable lo net present value in the Housing
Successor Fund accounted for the decrease in fund balance in this fond.
• The Prnposition 172 Fund deficit fund balance is the result of a loan from the Capital
Improvement Fund in FY 2016-17 to provide cash for replacement of public safety
radio equipment. The loan is 10 be paid back over a 5 year period wuh future Prop 172
sales tax revenues.
1,
PROPRIETARY l<'UND HIGHLIGHTS AND ANALYSIS
The Proprietary Funds of the City oonsrsr of the Enterprise Funds (Waler Fund and Sanitation
Fund) and tllC Jn1emal Service Fonds. The Enterprise Funds are reported as Business-Type
Activity on the Government-wide Financial Statements. The Internal Service Funds are
Governmental Activities and as such, arc oombmed with other Governmental Activities
(Governmental Funds) when presented on the Government-wide Financial Statements The
following are highlightb or the Proprietary Funds:
Enterprise Fund· Revenues. Operating revenues increased approximately $7.2 million. due
a water rate increase, increased water consumption and the estabhshmcm of a sewer eapnal
fee.
Enterprise Fund - Expenses. Operating expenses increased $4.3 million over tllC prior year,
due primarily to an increase in purch<™:d waler and replenishment assessment, correlating ro
the increase in water sales
Enterprise Fund - Net P05itio11. Beginning Net Position was restated by S6 I million due to
the implementauon of GASH 75, which requires the recording of the City's net OPEB
liability The change in net position al year-end totaled Sl.04 million. and was a result of
operating expenditures s!ighlly exceeding operating revenues.
Internal Service Funds - Revenues. During Fisca! Year 2017-18 the Internal Service Funili
had total opera1mg revenues of$!0.3 million. 11m represents a decrease of $1.7 million over
the prior year, mainly due lo ,1 reduction in charges to user funili for vehicle maintenance
funding.
Internal Service Funds - Expenses. Operating expenses for Fiscal Year 2017-18 totaled
$17.8 mil hon, a decrease of $2 million. The decrease was mainly due to decreased workers'
compensation insurance claims expense.
Internal Service Fund!.· Net Position. Total net position at June 30. 2018 totaled $14
million, a decrease of $6.5 million over the prior year, due Lo the unfunded vehicle equipment
expense and year-end recording of actuarial detemuned fumre insurance claims. and the
implementation of GASB 75, which requires the recording of the City's net OPED liability.
The unrestricted net position of the lmemal Service Funds ai year-end totaled $3.9 mill1on.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City's Five Year Capit.al Improvement Plan estimates spending enomer
$95.1 million m Fiscal Years 2018-19 through 2023-24. Funding will come from current fund
balances, projected revenues over the next seven years, grants, and private donations. The
following ch.111 shows capital assets al June 30, 2018.
13
Capital Assets
(shown in thousands, net of depreciahon)
Governmental Business 1ype
AtuvitieJ Attivities TOlal
I.ill 1Hl I.ill 1Hl !HO 1Hl
Land S 80,404 80,404 2,647 2,647 &3,051 &3,05!
Rights of way 346.B97 344,B45 346,897 344,845
lr,fra�truchm: 122,!50 l 19,493 122,150 I 19.493
Slru<:1 urcs/m1pro�c,nen1s 74,193 75,157 53,038 55,257 127.231 130.414
I-um iturc/fi xtures/eij u l p 15,666 16.4•n 7,941 8,007 23,607 24,502
Connrumon m Progress 19,396 6,&65 4,49& "" 23,&'M 7,692
Sewer 25,45] 26,464 25,451 26,464
Storm drains 39 350 40935 39 350 40935
Total $658,706 643,259 132.925 134,137 791.631 777,396
More detailed infonnation on the City's capital assee activity can be found in note J on pages
5 l through 53.
Long Tenn Liabilities
The City has no outstanding long term debt. The long tenn liabilities of the City consist of
liabilities for compensated absences and insurance claims. -� ... ..... , ..
1q, .... , -· 1111< Willlin =- ·- -- -�- 1111111« =,- =,- Oo"""""""" ... ""''" m,10) ,,m 1lt,7ll ""'
_,
eo,,.,..-..i-... Ufila.JS< J.6!11.ITl l.61S.IIOZ IJJ62�, JJll7.7�l 4M,,1,7111 °'""" poyabl< l!.&117!9 �2.1&1 l.14Ulli 17�)4 4,!19.171 l:!,Y!),16) To<otG,,m,,.-..1<t,.,on i.l.!ltl!l l'<J l.lll.007 ·-· ll.6111.622 1,.115,911 17.1:ll.634
B........_'Yfl" •aM!la -- 7al,7j9 ,�1, SSS� tCM.o!!J 4�9'1 ,� Sl-071.100 l.ll!.Ol7 6.'r.l.67) �m- l.lilMII 11 SM,.ll'I
REQUF.ST FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances. This
financial report can also be found on the City's website al www.cstyoforange org. Questions
concerning any of the mfonnation provided m !lus report or request for additional financial
mformation should be addressed to the Finance Departmem, City of Orengc, 300 East
Chapman Avenue, Orange, California 92866.
1,
Government-wide Financial Statement&
CITY OF ORANGE
Statement of Net Position
JuneJ0,2018
Governmental Business-Type
Activities Activities Totals
ASSETS:
<Mh ar.d investments (note 2) ' 113,965,33] 18,526,4)5 ]]2,491,768
Caah and inveslmen!S wnh fiscal 11.gl. (note 2) 90,42] 90,423
Receivables (net of allowance for uncolloctibles)
Accounts S,SSJ.560 6.212,382 ll.76],942
Taxes (note 4) 8,512,618 '"' 8,512,900
lntcres! 409,498 59,195 468,69)
!nlc'l:Ovcmmenlll 218,3]7 218,337
Inventories 445,289 859,371 l,304,660
Prepaid item• 41,500 41,500
Loans n:ccivable (net of allowance for NPV (Note 12) 24,916,421 24,916,421
Capital assets, undep�iated {oote 3) 445,762,888 7,144,820 452,907,708
Capital assets, net (note J J 212,943,168 125 779 821 338,722,989
Total assets 812,877035 1581582J06 971,459,141
Dl:WERRED OUTFLOWS OF RESOURCES:
Deferred Pension related items 5(),175,362 4,165,044 60,340,406
Deferred OPEB related items 954,221 241 576 1,195,797
Total deferred outnows of rosourccs 57,129,583 4 406,620 61,536,203
LIABILITIES:
Accounts payable 7,184,505 5,988,685 13,173,190
Aocrucd ilem5 2,174,444 2,!74,444
Ocpo1its payable 58,029 147,949 205,978
Con11aets payable 324,469 324,469
Due to other agencies },238,085 l,238,085
Unearned revenue 2,489,721 79,262 2,5611,983
Noncurrent neenrnes (oore 9):
Due within one year 8,515,988 104,493 8,620,48!
Due In more than one year !7, lJS,634 450,951 17,586,585
Net pcru.ion liability (note 6) 243,917,912 20,078,621 263,996,533
Other post employment bcmcfits (note 8) 24 956 344 6,318,062 ]l,274,406
T01::11! liabili1ics 309995,131 33168023 143,163,154
DEFERRED INFLOWS OF RF.SOURCE.S:
Deferred pension rclM�'<I ilem! 9,667,612 618,030 10,285,642
Defem:d unavailable resources
Total deferred inflows of resources 9,667,612 618,030 10,285,642
NET l'OSITJON:
Net Investment in capltal BSSCts 658, 106,056 132,924,641 791,630,697
Resuicted for:
Spccific projects and progn,m, 40,BJJ,934 40,Hll,1114
Unresmc1cd (149,196,115) (3,721,768) \15219171883)
Tou! net po1ition ' 550,343,875 129,202,873 6?9,546,748
Sec accompanying notes to the financial statements.
15
CITY OF ORANGE
Statement of Acuvuies
Year ended June 30, 2018
Program Revenues
Operating Capital
Charges for Grants and Grams nnd
Ex�nses Service.� Conlribucions Contnbutions Governmental acnvlties:
General government ' 12.469,912 5,784,798 3,581.974
Public safety 91,221.804 7,412.945 691.996 243,792
Public works 18,449.207 619.178 120,0ll5 3,924.096
Community developmenc 5,419,811 2,250,135
Parks and library 18.243,140 1.323.715 !68,310
E.onomic developmenl 2,667 779 220.572
Total gcvernmerual acc,vities 148 471 653 17 390 771 4,562,365 4,388,460
Busine.,;s-iypc ecnvlrics:
Warer 33,413.891 32,419,133
Sdnil�t1on 7,926,974 7.838,429
Toca I business-type acuvhles 4 l.340 865 40,257�62
Totals $ 189,812,518 57,648,333 4.562.365 4,388,460
General revenues:
Taxes (note 4):
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Other axes
Use or money and property
Other
Total general revenues
Change in net posltmn
Net posrnon at beginning or year. :u restated (note 18)
Net position at end of year
Sec accompanytng notes tu the financial statements.
16
Ne! {Expen.e) Revenue
and Change) in Net Position
Governmcmal Busint<Ss-typc
Activities Activiues Totals
(3.103.140) (3,103,140)
(82,873,071) (82,873,071)
(13,785,848) (13,785,848)
(3,169,676) (3,169,676)
(16,751,115) (16,751.115)
(2.447,207) (2,447,207)
( 122, 130,057) (122,130,057)
(994.758) (994.758)
(88,545) (88,545)
(1,083,303) ( J ,083,303)
(122,130,057) (1,083,303) (123,213,360)
42,385,253 42.385,253
45,082,151 45,082,151
5,476,167 5.476,167
2,831,378 2,831,378
31,440 31,440
l,753.319 41.164 J .794.483
5,075,459 5,075 459
102,63.5,167 41,164 102,676,331
(19.494,890) (1.042,139) (20.537.029)
.569,838,76.5 130,245,012 700,083,777
' 550,343,875 129,202,873 679.546.748
Sec accompanying notes to the financial statements.
17
(This page intentionally left blank)
18
Fund Financial Statement&
Governmentul J<"unds
Major Governmental found�
Individual funds whose assets, liabilities, revenues or expenditures are at least 10% of the total
assets, liabilities, revenues or expenditures of the governmental funds aml at least 5% of the total
assets, liabihties, revenues or expenditures of the goverrunental and enterprise funds combined,
will be dassified as major funds.
The General Fund must be classified as a major fund and is used to account for revenues and
expenditures that are not required to be accounted for in another fund.
Sped a[ Revenue Funds are used to account for the proceeds of specific revenue sources {other
than for major capital projects) that lire legally restricted to expendirure for specified purposes.
The following Special Revenue Funds have been classified as major funds in the accompanying
financial statements
• Proposition 172
• Federal, State and Local Grants
• Housing Successor
• Measure M
Capilal Projects Funds are used to account for the acquismon and construction of capita!
faciliues. The following Capital Projects Funds have been classified as major funds in the
accompanying financial statements:
• Capita! [mprovement
• Park /\cqumtion Development & Maintenance
Non-Major Governmental Funds
Other Governmental Funds - These funds constitute all other governmental funds that do nol
meet the major fund test described above. These funds include Special Revenue Funds and
several smaller Capital Projects Funds.
19
CITY OF ORANGE
Balance Sheet
Governmental Funds
June30,2018
Se!:!:ial Revenue Funds
Propositmn Federal, State &
General 172 Local Grants
ASSETS:
Cash and investments (note 2) $ 29,842,077 167,126 1,821,165
Receivables (net ofallowanc,;: for
estimated uncolleetibles):
Accounts 2,257,971 , ...
Taxes (note 4) 7,55),198 174,213
Interest 239,460 718 6,915
lnlergovemmental 218,337
Advances to other funds (note 13)
Inventories 95,178
Loans receivable (net of allowance for net
pres,:;nl value (note 12) 3814961
Tollll assets 39,987,884 342 057 5,861,722
LIABILITIES:
Accounts payable 1,698,953 7,80] 6,246
Accrued items 2,170,557
Deposits payable 53,489
Contracts payable 942 31,410
Due to other agencies 225,469 4,017
Unearned revenue 360,395
Advances from other funds (note 13) 2 324 121
Total liabilities 4 509 805 2 331,924 41,673
DEFERRED INFLOWS O�' RESOURCES:
Unavailable revenues 619,523
Total deferred inflows of resources 619 523
FUND BALANCES:
Nonspendable:
Inventories 95,178
Restricted for:
Special revenue projects 5,820,049
Com mined
Assigned for:
Capital projects
Unassigned: 34,763,378 (1,989,867)
fotal fund balances 34,858,556 (1,989,867) 5,820,049
To111l liabilities, deferred inflows of
resources and fund balances $ 39987 884 342,057 5,861,722
See accompanying notes to the financial statements.
20
CaEilal Project Funds
?ark Acquisition Other
Housing Capiml Development & Governmental
Suc�'CSSOT Mcasun: M Impmvement Maintenance Funds Totals
2,018,888 3,113,424 23,771,606 7,092,762 20,399,053 88,226,101
" 21.993 3,132.123 1,764 136,238 5,550,468
480,220 304,987 8,512.618
7,033 11,193 45,650 26,030 72,499 409,498
218,337
2,324,121 2,324,)21
95, 178
18,282,696 2,838,764 24,936.421
20,308,652 3,626,830 29,273,500 7, 120,556 23,751,541 130,272,742
96.849 1,424,826 2,441,819 701,555 6,378,05 !
2,170,557
l,450 3,090 58,029
12,081 36,678 192.887 50.47! 324,469
3,008,599 3,238.085
2,129.326 2,489,721
2,324,121
I I0,380 6,599,429 2,634,706 755.! 16 16,983,033
2.345,394 2,964,917
2,345,394 2,964,917
95.178
20.308,652 3,516,450 11,188,783 40,833,934
7,398,168 7,398.168
20,328,677 4,485,850 4,409,474 29,224,00J
32,773.511
20.308.6S2 3,516.450 20 328 677 4,485,850 22.9%,425 110,324,792
20,308,652 3,626,830 29,273,500 7,120,556 23.751.541 130,272,742
Sec accompanying notes to the financial statements. 21
(This page intentionally left blank)
22
CITY OF ORANGE
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
June 30. 2018
Fund balances of govcmmenul funds
Amoonts n:ported for go"<:mmcnul activities in the Statement or Net Posmo,, are
diffen:nt becau!IC:
Capit.:tl assets net of depreciation Mvc not bun included IS linaoc:ial
resources m governmental fund acuvity·
Capital asscl, IC!ls accumulated dcprccialion
Less capital assets (nci) included in internal sc,-,.,icc funds (below)
Long-term )O,l!IS payable applkable to City govcrnment.1.l activiries an: not due
and p.1yable in the current period and as such an, not n:ported as fund liabilities.
Compensated absences ond olher post employment benefitJ
�,at have not been included in the governmental fund activity:
Compensated absences
Items related to net pension habihty and toc.:il other posl employment benefits
{OPEB) liability (cxolud,nl! !mernal Ser,ice Funds hab1h11es)
Net Pension and TOI.Ill Ol'EB related debt applicable to City governmental
acrmties are not due and payable m 1he current penod and accordingly are
not n:ported 1s fund liabihucs. Deferred outflows of resources related 10
pension and OPEB liabilirie:,;; are only rr:pottr:d m the Suucmcnt of Ne!
Position as the. changes in these a moon ts affect ooly tl,c governn,cnt-wide
smement,s for governmental 11etiv1ties.
$ i l0,324,792
6j8,706,056
{I0.112.49j)
(538,733)
(8.062.55S)
Dcforn:d 001now of =oon:cs - Pcn1ioo
Dcfem:d inflows of rescoun:es - Pension
Pension hab1hty
jJ,303,S47
(7,505,200)
(239.902.187) (194. IOJ.840)
Deferred outflow of resoun:es -OPED
OPEB liability ' 905.906
(22. 786,826) {23,692,732)
Certain revenues m the governmental funds an: m:orded as unovoilablc
revenue using the modified 11«rulll brns and are recognized as rcvcn,.._ under the.
full accrual basis for reponing in the Government wide Financial Statements.
Internal Servi cc Funds arr: used by management LO charge the costs of certain
achvilies to individual funds. The o.s<r:U and hab,lines of the Internal Service
Funds an: included i11 lhe. Sta1cmcn1 of Net Position bccausi: !hey are not mduded
within lhc Balanee Sheet of the Governmental Funds
Net poi;ition of govemmcnt11.I act1vi1ies
&,, accompanying nolC!I to the. financial Slaten,cnu
23
2.964.917
S 550 343,875
CITY OF ORANGE
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year ended June 30, 2018
Special Revenue Funds
Proposition Federal, Staie &:
General 172 Local Grants
REVENUES:
Taxes (nole 4) s 88.183.290 986.154
Franchise fees 2.541,850
Licenses and permits 4.807,460
UK of money and property 1.148,474 7,962 23,888
lntergovernrnemal !,905,719 l.431.696
Ch11Cges for services and fees 7.374.837 31.950
Fines and forfeitures 1,852,674
Other revenues (nme 5) 3,293, 17 l
Total revenues lll,107,475 994,ll6 1,487,534
EXPENDITURES:
Current:
General government 10,897,704 17,741
Public safety 72,433.022 400.545 146,249
Public works 7.397.919 20.787
Community development 4,488,092
Parks and hbrary 13,492.079
E.conomic development 173.191 403,609
Capital outlay 123,612 890,212 1.007,579
Tocal expcndicures 109,005,619 l.308,498 1.578.224
Excess (deficiency) of revenues
over (under) expenditures 2 IOI 856 (314,382) (90.690)
OTHER FINANClNG SOURCES (USES):
Tran�fers in (note 14)
Transfers out (note 14) (3.142,261)
Total other financing
sources Iuses) (3.142,261)
Net change in fund balances (1.040.405) {314,382) {90.690)
Fund balances. beginning of yellf 35,898.961 (1.675.485) 5,910,739
Fund balances. end of year S 34.858.556 !l,9891867l 5.820.049
See accompanying notes to the financial statements.
'"
C�ital Project Funds
Park Acquisition Other
Hous,ng Capital Developmem & GovcmmcnTal
Successor Measure M Improvement Maintenance Funds Totals
2,779,864 1.025,703 92,975,01 !
289,528 2,831,378
39.22! 4,846,681
112,987 54,962 108,323 123,224 173,499 1.753.319
127,3!0 1,276,706 4,275,305 9,016,736
16' 7,080 413.518 2.875.459 l0,703.009
1,852,674
194,000 953,662 12,018 330,298 4,783,149
306,987 2.962.301 2,345,77 l 548,760 9,009,013 128,761,957
40,824 291,23! 241,462 11,488.%2
2.725,038 75,704,854
339,605 2.593,637 10,351,948
54,381 2,949 4,545.422
143, ! 93 6,111\6 934,459 14,575,737
1.530.672 246,846 2,354,318
4,702,026 8.JSS,867 5,280,41!4 3,237,202 23,5%,982
1.625.877 5,184,824 8,653,104 S,280,484 9,981,593 142,618,223
(!,318,890) {2,222,523) (6,307,333) (4.731,724} (972.580) (13,856,266)
l,000,000 42,261 1,042,261
(115,000) (3.257.261)
88.tOOO 42,261 (2,215.000)
(1,318,890) (2,222,523) (5,422.333) (4.731.724) (930.319) (16,071,266)
21,627,542 5,738,973 25,751.010 9,217.574 23,926.744 126,396,058
20,308,652 3.516,450 20,328,677 4.485,850 22,996.425 110,324,792
Su accompanying notes to the financial statements.
25
CITY OF ORANGE
Reconciliation of the Statement of Revenues, Expenditures.
and Changes in Fund Balances of Govern men ta! Funds
to the Srarernem of Activities
Year ended June 30, 2018
Net change in fund balances - total g<:ivernmental fonds
Amounts reported for governmental activihe.s m the Statement of Acnvme.s an:
difkn:nl because·
Governmental funds repost capital outlays as expenditures. However, ,n the
Statement of Activities, me com of !hose assets are allocated over their estimated
useful hve.s as depredation npcnsc. This is the amoont by wh,ch capital outlays
of $23, 729,314 exceeded depreciation of $7, 154,8�6. and disp,:,sals of $1, 142, 179.
These numbc,s do not include Internal Servi�-e Fund capital ou1layi; of $1.�65,273.
dcprt:eiation ofSJ,509.533 and dispusals of $41,133.
Governmental funds report lo.a pnx:,,,,15 a,i "'venue.5. However. in the Statement of
Activmcs. these proceeds are re,conlcd as a liabihty
s (] 6,071,266)
15.432.279
(538.733)
Compensated absences expenses reponed in the Statement of Activities do not
tejjUire me use of current financial resources and therefore are not reported as
expenditures in governmental fund.I. This is the ne1 change in the current period. (4,371)
Ccn,.in revenues in the government.al funds arc u11ava1lablc using the modified &Ccrual
basis and must lhercforc be rccogmzcd as revenue under tile full accrual basis
for n:porting in lhe Govcrnmenl-wide Rnoncial Slalcment,. This is the net
change ,n unavailllble revenue for the current period. 753.539
O!her post employment benefits expenses reported in the Statement of Activnies do
not require the use of current financial resources and therefore are llOf reported as
expenditures in go�mmental funds. (39,830)
Intern.al Serv,cc Funds otrc used by managcrnc:nt 10 charge !he costs of ccn.oin
&Ctiviucs to individual funds TI,c net revenues (expenses) of the Internal
Service Funds arc reported with govcmrnc:ntol activities (5,3 J0,539)
Pen1ion oblii:ahon expenses "'ported in lhe ,ta!cmcn! of activities do not re<JUirc the
use of curTr.nt financial resour<:CS and, thcn,forc, are nQI reported 115 cxpud,tum in
governmental funds; (13.715.969)
Net change ,n net position of governmental achvilics $ ( I §.494.890)
Sec accompanying "occs to the financial �llltcrnents
26
See accompany,ng ,,oces to the financial ,uucmcnu
27
CITY OF OKANGE
Suuement of Rcvcm11:s, Expenses, 11nd Ch;ngc• ,n Fu"d NeL l'o>itmn
Proprietary Funds
foJ1C30,2018
Business Type CkwcmmcnW
Attivit;.,,. Act1Y>IIOS •
En1<:!I!!oc Fund ln1cmal S.MCe
S,n,i,.,ion w., •• T,.als l'Ur.ds
Ol'ERATING REVENUES:
W•u,r s.tlts and .. � ' 32,186hl7 32,186h17
ChorJ1tS for S< .... itcS :U.d fee• 7.604.lll 126.SOS 7,730,62! IO,IB4,8S9
Olhe, rc•om,.,. 234 316 106 008 3-40 ]24 120 062
TOW Operating revenue, 7.83S,429 32.419 133 40,257 562 10304951
OPERATING EXPEN�ES:
Salaries llld wages 2.817,866 6,786,170 9,604,636 3,826,649
Moinl<I\Ulcc and op:..t>ont 74,761 18,908,ID( 18,9113,265 l,ISJ.345
Con!nletual ICMcu l,216,410 3,03 I ,'.l6<t 4,247,774 2.SS1,64S
Depre,:mion 2.182,982 2417.686 S.300.668 1.309.!ill
lnterfllnd c11.u&e for lldmmi�ivc .,rv,us 694,101 1.4n.680 2,146,78]
!nsW'IIIICC d:lims ond cho.&e• 6,711,681
O!hor upt=• 240 8S4 816887 IOH741
Tot.ol operating c,pt....,, 7926974 33,413,891 41 J.40 86S 17 818,853
Oprnuin& income (lou) (88J4S) \994,758) ! 1.083,303) p�!3,II02)
NONOPERATING REVENUES
{EXPENSES):
u .. of money and prnpeny (l3,J8S) 74,549 41,164
Ga,n (loal on rc1ircment of"""'"
Toi.l nonop,nillnJ "'"""""' (expenses) pl,]l'i) 74-349 41.164 (11.637)
!""""" (k>!.s) before capi1al
conmbul,ons :uid =f•rs (121.930) (920.209) (1,042,139) (7.!i2S.S39)
Tmisfm ,n (MKe 14) 2215,000
Ch.m11e In net posiuoo (121.930) (920,209) (1,042.139) (S,310.Sl'>)
Net position. tie111nn1n11 of�"'· u rtS1>1t<I (OO!e 18) 64 411.0SS 6S.8ll 927 l30,24S,012 19263098
Nc L JX)S>ban, <:lld of yi:ar ' 64 289 155 64913718 129 202 873 1J,9S2.SS9
See accompanying note11 to the financial scatements.
28
� ""'°"'panyinz f>Oltl 10 lhc financial statement 5,
29
CITY OP ORANGE
Statement of Fiduciary Ne! Pos,uon
Fiduciary Funds
lune 30, 2018
Private-Purpose
Trust Fund
ASSETS:
Cash and investments (nole 2)
Cash and investments with fiscal agent (note 2)
Accounts receivable
Interest receivable
Due from other agencies (note l9c)
Taxes receivable
Loans receivable (net of forgiveness and net present value
allocation) (note 19b)
Total assets
DEFERRED OUTFWWS OF RFSOURCFS:
Deferred pension related items
Deferred OPEB related items
Deferred loss on bond refunding
Tota! deferred outflows of resources
LIABILITIFS:
Accounts payable
Interest payable
Depo�its payable
Due lo bon<lholdcrs
Non current habilnies: (note 19d)
Net pension habi!o1y
Net OPEB liability
Due in one year
Due in more than one year
Total loabilotie11
DEFERRED INFLOWS OF RESOURCES:
Deferred pension related Items
Total deferred inflows of resources
NET POSITION
Held in trust
'
•
Agency
Funds
5.478.056
3,104,549
11,340
39,184
8,633,129
4,498
2,144,599
6.484,032
•
Successor
Agency Trust
Funds
7,888,!56
2,630,607
389
13,m
3,234,068
377,281
14,144.278
208.252
12,079
292,261
512.592
S34,111
831,673
l ,003,930
315,903
4,381.823
49,528,469
30,902
30,902
(41.969,941)
8.633.129 ·''--"'•'•·'s"='°'"-
See accompanying notes to the financial statements.
30
CITY OF ORANGE
Statement of Chdflges in Fi�uci!lfY Nel Position
prtvare.Purpcse Trust Funds - Successor Ag1:ncy Trusi Fund
June 30, 2018
ADDITIONS:
Other
Interest
County revenue - RPTfF (note 19)
Total additions
DEDUCTIONS:
Interest expenSI'
Admmisirative expenses
Maintenance and operations expenses
Contraetual services
Dnposiuon and development agreement payments
Total deductions
Changes m net posiuon
Net cosnrcn - bcgmning of�. as restated (note l9e)
Net posiuon - end of year
See �ccompllnying notes tu the financial statements.
JI
$ 46,336
106,294
6,!50,753
6,303,383
2,240,678
225.852
205.609
18,032
916,! 15
3.606.286
2.697,097
(44,667,038)
S (41,969,941)
(Ibis page intentionally left blank)
"
Notea to the · Financial Statement&
CITY OF ORANGE
In Order of Presentation
Year ended June 30, 2018
NOTE PESCRJPTlON
I. Significant Accounting Policies
2. Ca.sh and Investments
3. capital Assets
4. Taxes
S. Other Revenues
6. Retirement Plan
7. Insurance Programs
8. Other Post Employment Benefits
9. Long-Tmn Liabilities
10. Community Facilities and Assessment Districts and Other Revenue
Bond Issues
11. Joint Ventures
12. Loans Receivable
13. Advances to/from Other Funds
14. Transfers
!5. Deficit Equity Balances
16. Contingencies
17. Expenditures m Excess of Appropriations
18. Restatement of Beginning Fund Balance/Net Position
19. Successor Agency Trust for Assets offonncr Redevelopment Agency
20. Subsequent Events
33
PAGE
34
46
31
53
34 '' 63 ss
68
68
69
70
71
71
71
72
72
72
73
76
I. SignjfiCjl(lt Accounting Policies
�scription of the Reponjng Entity
The City of Orange (City) was incorporated in April 1888 wider the general Jaw� oflhe State
of California. The City operates wider a Council-Manager fonn of government and provides
the followmg services. public safety, public works, community development and
redevelopment, parks and library, samtauo», and genera.I admmistrativc services.
Effect of New Accountmg Standwls
Currut Year Stamfards
• GASB 75 - Accounting and Financial Reporting for Postemp/oyment Benefits Other
Than Pensions, effective for periods beginning after June 1 S, 2017. In fiscal year 2017-
2018, the City implemented Governmental Accounting Standards Board Statement No.
75, Accounting and Financial Reporting for Postemp/oymenl Benefits Orher Than
Pensions. This statement establishes standards for measuring and recognizing
liabilities, deferred outflows er resources, deferred inflows of resources, 1111d expenses
for postemployment benefits other than pension. Accounting changes adopted to
conform to the provisions of this statement should be applied retroactively. The result
of the implementation of this statement decreased the net position at July l, 2017 of the
governmental acuvities by $12,685,738, the business -type activities by S6,06S,866,
1111d the fiduciary funds by $303,293.
• GASB 82- Pcmion Issues, effective for periods beginning after June 15, 2016, except
for certain provisions on selection of assumptions, which are effective in the first
reporting period in which the measurement date of the pension liability is on or after
June 15, 2017. The objective of this Statement is to address certain issues that have
been raised with respect to Statements No 67, Financial Reporting/or Pension Plans,
No. 68,Accountingand Financial Reporting/or Pensions, and No. 73, Accounting and
Financial Reporting/or Penswns and Relared Asseu Thar A.re Nor within the Scope of
GA.SB S101emen1 68, and Amendments to Certain Provisions o/GASB S1atemen1s 67
and 68. Specifically, this Statement addresses issues regarding (I) the presentation of
payroll-related measures in required supplememary infcrmaticn, (2) the selection of
assumptions and the treatment of deviations from the guidance in an Actuarial
Standnrd of Pmctice for financial reporting purposes, and (3) the classification of
payments made by employers to sabsfy employee (plan member) contnbuuon
requirements. The City implemented these changes in the current statements as
applicable
• OASB 85 - Omnibus 2017, effective for periods beginning after June IS, 2017. This
statement did not impact the City.
• GASB 86 - Certain Debt Exting11ishment Issues, effective for penods beginning after
June IS, 2017. This statement did not impact the City.
'"
I. Significant Accounting Policies (continued)
Pending Accounting Standards
GASB has issued the following statements, which may impact the City's financial reportmg
requirements in the future:
• GASB 83 • Certain Asset Retirement Obligat1ons, effecnve for periods beginning after
June 15, 2018.
• GASB 84 Fiduciary Activities, effective for periods beginning after
December JS,2018.
• GASB 87 • Uases, effective for periods beginning after December 15, 2019.
• GASB 88 • Certain Disclosures Related 10 Debt, including Direa Borrowings 1md
Dtrea P/ocemems, effective for periods beginning after June 15, 20! 8.
• GASB 89 • Account mg far Interest Cwt Incurred before the End of a Cons/ruction
Period, effective for periods beginning after December 15, 2019.
• GASB 90. Majority F.qulry Interests-an amendment nf GASH Sta1emems No /4 and
No. 61), effective for periods beginning after December 15, 2018,
Ba.:ii� of Accounting II@ Meas1Gment Focus
The bmicfinancla/ statements of the Cay are composed of the following:
• Goverrunent·wide Financial Statements
• Fund Financial Statements
• Notes to the Financial Statements
The accounting and financial reportmg treatmeru is determmed by the applicable
measurement focus and basis of accounting. Measurement focus indicates the type of
resources being measured such ns current firmncial resources or economic resources. The
basis of accounting indicates the timing of ITllll�ctions or events for recognition in the
financial statements
Government"w1de Fincmciol S1111ements
Govcrrunent-wide Financial Sl.8temcnts display information about the reporting goverrunent
as a whole, except for its fiduciary ecuvmee. All fiduciary activities are reported only in the
fund financial statements. The Government-wide statements include separate columns for
the goverrunental and business-type activities of the primary goverrunent. Eliminations have
been made in the Statement of Activities so that certain allocated expenses are recorded only
35
I. Si@ific!II1.L AccoWJJing Policies (continued}
once (by the function to which they were allocated). However, general government expenses
have not been allocated as indirect expenses to the various functions oftbe City. Also, ccr1ain
eliminations have been made in regerds to interfund transfers, payables, and receivables.
Internal service fund activity has been eliminated and net balances are included in the
governmental activities. lnlerfund services provided Ellld used, if any, are not eliminated in
the consolidation process.
Government-wide Financial Statements are presented using the economic resources
measuremenrfocus and thefi,f/ (ICCruol /wsis of occounnng. Under the economic resources
measurement focus, 1111 (both current and long-term) economic resources and obligations of
the reporting government are reported in the Government-wide Financial Statements. Basis
of accounting refers to when revenues and expenses are recognized in the accounts and
reported in the financial statements. Under the accrual basis of accounting, revenues,
expenses, gains, IO$Scs, assets, and liabilities resulting from exchange and exchange-like
transactions are recognized when the exchange takes place.
Program revenues include charges for services, opemting grants and contributions, capita!
grants and contributions, special assessments, and payments made by parties out.side of the
reporting government's citizenry, ifthat money is restricted to a particular program. Program
revenues are netted with program expenses in the Statement of Activities to present the net
eosr of each program. Charges for services include revenues from customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function. Grants and contributions include revenues restricted to meeting the operational or
capital requirement of a particular function. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
Amounts paid to acquire capital assets are capitalized as assets in the Government-wide
Firuncial Statements, rather than reported as an expense. Proceeds of long-term debt are
recorded as a liability in the Govemmen1-wide Financial Statements, rather than as an "other
financing source", Amounts paid to reduce !ong-\Crm indebtedness of the reporting
government are reported as a reduction of the related liability, rather than as an expense.
Fund Financial Statements
The undcrlymg accounung system of the City is organized and operated on the basis of
separate funds, each of which is considered 10 be a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, deferred inflows of resources, fund equity, revenues and
expendnures or expenses, as appropriate. Governmental CC80Urcea are allocated 10 and
accounted for in mdrvidual funds based upon the purposes for which they are to be spent and
the means by which spending 11ctiv1hcs are controlled.
Fund Financial Statements for the primary government's governmental, proprietary, and
fiducilll"y funds are presented &fter the Government-wide Financial Statements. These
statements display information about major funds individua!ly and non-major funds in the
36
1. Sicnific1mt Accountim;: Policies fcontinuedl
aggregate for govenunental 1111d enterprise funds Fiduciary statements include financial
information for fiduciary funds. Fiduciary funds of the City primarily represent assets held
by the City in a cu�todial capacity for other mdividuals or orgaruzaticns.
Governmental Funds
In the Fund Financial Sratemems, governmental funds arc presented using the mod,fted-
accrua/ basis a/ accaimtlng. Their revenues are recognized when they become measurable
and cvadobte. Measurable means that the amounts can be estimated, or othcnv:isc
determined. Available means that the amounts were collected during the reporting period or
soon enough !hereafter to be available to finance the expenditures accrued for the reporting
penod. The City uses an availability period of 120 days for grant revenue and 60 days for all
other revenues. Major revenue sources that an: susceptible to accrual are sales lax, property
tax, motor vehicle in-lieu f1..'<!S, franchise fees, license and permit fees, charges for services
and interest earnings.
fu:chcmge transacnons arc recognized as revenues in the period in which they arc earned
(i e., the related goods or services are provided) Lornlly imposed derived tax revenues are
recognized ns revenues in the period in which the underlying exchange transaction upon
which they arc based takes place. Imposed nan-exchange transactions are recognized as
revenues in the period for which they were imposed. If the period of use is no! specified,
they nre recognized as revenues when an enforceah!e legal claim to the revenues arises or
when they are received, whichever occurs first Governmen1-mandated and vo/un1ary non-
exchange 1ra,isacllans arc recognized as revenues when aJl applicah!e eligibility
requirements have been met.
Rermb11rsemenl grunts are those grants for whleh the recipient govcnunem must first incur
allowable costs in order to qualify for the reimbursement For these grants, funds received in
advance of incurring the allowable costs nre recorded as unearned ,�enue in both the Fund
Fmancia/ Statements and the Governmenl-wrcle F1mmcial Slalemenls. A receivable {and
related revenue) is recorded for costs incurred during !he year for which reimbursement has
not yet been received. In the Fund Financial Statements of govenunental funds, however,
unavai/uble revem,e {N!thcr than revcnnc) is recorded at the establishment of!his receivable
if the amount of the reimbursement is not expected to be received during the recipient's
availabillty period.
A.llacations nre voluntary non-exchange transactions received from other governments that
are not in the fonn ofreimhursement grants. The entitlement of the recipient government for
the receipt of these funds is not based upon the recipient government first incumng allowable
expenditures. These amounts nre recorded as revenue when the recipient government
becomes entitled to the allocation. Unearned revenue is not recorded in either the Fund
Financial Statements or in the Government-wide Financial Statements for receipt of
allocations prior to the recording of related expenditures. In some ceses the amounts not
spent within a specified number of years (the spending period) must be returned to the
providing agency The requirement to return unspent funds within the spending period ts not
37
L Significant Accowning Policies rcomiouedl
considered to be a requirement pertwning to the eligibility of funding and does not affect the
recognition of revenue for this funding. This is because there is no requirement to spend !he
allocated resources in specific amounts or proportions for each of the fiscal years covered by
the spending period. The entire allocation may be spent in any of the fiscal years covered by
the spending period. Any amounts returned at the end of the spending period are required
by generally accepted accounung principles to be recorded at that time as an expenditure.
In the Fund Financial Sllltements, governmental funds are presented usmg the current
finunciul resources meusurtmenl focus. This means that only current assets, current
hablliues nnd deferred inflows of resources are generally mcluded on their balance sheets.
The reported fund balance is considered to be a measure of�availab!e spendable resources."
Governmental fund operating statements present increases (revenues and other financing
souroc:s) and decreases (expendnures and other financing uses) in fund balance.
Accordingly, they arc said to present a summary of sources and uses of"available spendable
resources" during a period.
Non-current portions of long-tenn receivables due to governmental funds are reported on
their balance sheets in spite of their spending measurement focus end are offset by restncted
fund balance. In addition, certain loans have a forgiveness component and/or have a
repayment tenn greater than that of conventional loans for these loans, an allowance has
been recorded to more accurately present the net present value of these receivables
Due to the nature of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by non-current liabilities. Since they
do not affect fund balance, such long-tenn amounts are not recognized as governmental fund
type expenditures or Iund liabilities.
Al110wits ci,:pcnded to acquire capital assets arc recorded as expenduures in the year thnt
resources were expended, rather than as fund assets. The proceeds of long-term debt arc
recorded as an other fimmcing source rather than as a fund liability. Amounts paid ro reduce
long-terrn indebtedness are reported as fund expenditures,
Proprieturyund F1duciury Funds
The City's Enterpnse Funds (Water and Sanitation) and Internal Service Funds arc
proprietary funds. Proprietary Fund Financial Statements include a Statement of Net
Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a
Statement of Cash Flows A column representing internal service funds is also presented in
these statements. However, internal service balances and ecuvnies have been combined with
the governmental activities in the Goverrunent-wide Financial Statements.
In the Fund Financial Statements, proprietary funds and fiduciary funds arc presented using
the full accrual basts af accauntlng Revenues arc recognized when they are earned and
expenses are recognized when the related goods or services are delivered. In the Fund
Financial Statements, proprietary funds and private-purpose trust funds are presented using
38
l. Sisnificam Accountjng Policies (contigued)
the economic resources measrJrementfocus. This means that all assets, deferred outflows of
resources, liabilities, and deferred inflows of resources (whether cum:nt or non-cum:nt)
associated with their activity are included on then balance sheets. Proprietary fund type
operating statements present increases (revenues) and decreases (expenses) in total net
position. Agency funds do no! have a measurement focus.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fwid. Exchange transactions arc
those in which each party receives and gives up essentially equal values. Non-operating
revenues, such as subsidies, taxes, and investment earnings, result from non-exchange
transactions or ancillary activities. Operating expenses include the cost of sales,
maintenance, administration and depreciation on capital assets which are essential to the
primary operations of the fund. All other expenses are reported as non-operating expenses.
Amounts paid to acquire capital assets are capitali:r.ed as assets in both the Enterprise nnd
Private Purpose Trust Fund Financial Statements, rather than reported as an expense Also
in these funds, proceeds cllong-term debt are recorded as a liability rather than as an "other
financing source" and amounts paid to reduce long-term indebtedness arc reported as a
reduction of the related liability, rather than a, nn expenditure Agency funds are custodial
in nature (assets equal liabilities) and do not involve the n:cordmg of revenues and expenses.
Fund Classifications
The funds designated as major funds an: determined by II mathematical calculation consistent
with GASB Statement No. 34. Generally, however, once a fund has met the criteria for
bccommg a major fund, it will continue to be reported as a major fund by management,
regardless of its calculation, in order to provide consistency and comparability between the
years. The Cny reports the following ma;or governmental funds:
General Fund. This 1s the primary operating fund of the City. It is used to account for all
revenues and expenditures that are not required to be accounted for in another fund
Special Revenue Funds
Proposition l 7J Fund. This fund is used to account for sales tex restricted by voter mandate
for public safety service enhancemenl.'l. The primary source of revenue in this fund is sales
<M
Federuf, State, and Local Grr,n/s Fund. This fund is used to account for grant programs such
as Commumty Development Block Grant, Housing and Urban Development Grant,
California Pad.lands Grant, Citizens Option for Public Safety (COPS) Grant, Traffic Safety
Grant, Justice Assistance Grant and others The major source of revenue for these funds is
proceeds from various federal, state and local grants.
39
I. Sigpjfinnt Accounting Policie� (continued)
Housing Successor Fund. This fund rs used to account for low and moderate housing
activities as of fcbru11!)' I, 2012, when the City became the successor housing agency co the
former Redevelopment Agency, upon its dissolution. Prior to that, these activities were
accounted for in the Redevelopment Agency Housing Fund. The primary source of revenue
for these funds rs principal housing loan repayments
Measure M Fund. This fund is used to account for receipts and expenditures relating to
transponation improvemcnl projects and programs, funded by local V, cent sales tax.
Capital Projects funds
Capital lmprovemem Fund. This fund ts used to account for general-purpose capital
improvement and cooperatively funded projects.
Park Acquisition Development & Maintenance Fund. This fund is used to account for the
acquisition, development and maintenance of parks that are financed by developer fees.
The City reports the following major enterprise funds:
Water Fund. This fund is used to account for the provision of water services to residential,
commercial and industrial customers.
Sam101/on Fund. This fund is used to account for the provision of sanitation and sewer
services to residential, eornrncrcia! and industrial customers.
The City's fund structure also includes the following fund types:
Special ReW!n11e Funds. These funds are used to account for the proceeds of specific revenue
sources that are restricted by law or administrative action for a specified purpose. These
funds include
Capiral Project Funds These funds are used to account for financial resources segregated
for the acquisition and construction of major capital faciliucs (other than those financed by
the proprietary funds).
internal Se nice Funds. These funds are used to account for the financing of special acuvities
that provide services within the Cuy. Such activities include: equipment maintenance,
equipment replacement, major burldmg improvements, information systems, computer
replacement, employee accrued hability, and dental and workers' compensation self-
insurance costs.
Private-Purpose Trial Fund. This fund eccouote for the assets, deferred outflows of
resources, liabilities and deferred inflows of resources of the former Redevelopment Agency.
Tax mcn::ment revenue, which was formerly allocated by the County to the Redevelopment
40
1. Significant Acoountim1 Poli�ies (continued)
Agency, is now allocated to the Successor Agency Private-Purpose Trust Fund to fund
payments of enforceable obligations until obligations of the former Redevelopment Agency
are paid in full and assets have been liquidated.
Agency Funds. These funds are used to account for money and property held by tile City as
trustee or custodian. These include the employee's flexible benefits plan, funds collected on
behalf of the County Sanitation District, and various cash deposits collected for special
purposes. Agency funds are also used to account for various assessment districts for which
the City nets 11.S an agent for debt service activity.
Cash and Cn�h Equivalents
For purposes of the Statement of Cash Flows, the City considered cash and cash equivalents
(investments with maturities of three months or less al the lime of purchase) as short term,
highly liquid investments thac are both readily convertible to known amounts of cash and so
near their maturity that they present insignificant risk of changes in value because of changes
in interest rates. The City follows the practice of pooling the cash and investments of all
funds, including the City's Enterprise and Internal Service Funds and Fiduciary Funds, except
for assets held by fiscal agents. As amounts are available to these fund:. on demand, all cash
and investments are considered to be cash and cash equivalents for Suitement of Cash Flows
purposes.
Changes in fair value that occur during a fiscal year are recognized as revenues from use of
money reported for that fiscal year. Use of money and property includes interest earnings,
chruigcs in fair value (realized/unrealiicd), gains or losses realized upon the liquidation,
maturity, or sale of investments, and rental income.
The City pools cash and investments for all funds, except for assets held by fiscal agents.
Each fund's share in the pool is displayed in the accompanying financial statements as cash
and investments. Investment income earned by the pooled investments is allocated monthly
to the various funds based on each fund's prior month-end cash and investment balance.
Inu:ntorie;s and P�paids
Inventories of office supplies, gasoline and oi! are maintained by the General and Internal
Service Funds. Tbc inventory maintairicd by the Water Utihty Enterprise Fund consists
primanly of water meters, water pipe, valves and fittings. Proprietary Fund inventories arc
priced at the lower of cost or market, determined on a first-in, first-out basis, utilizing the
consumption method of accounting fur inventories. The General Fund and Internal Service
Funds inventories are valued at cost, determmed on a weighted average basis utilizing the
consumption method of accounting for inventones.
Certain payments 10 vendors reflect costs applicable to future accounting periods and are
recorded as prepaid, utilizing the consumption method.
41
I. Significant Ac,;oµn1ing Policies (continued)
Loans Receivable
Non-cum:nl portions of long-term receivables due are reported on the Oovenunental,
Ooverrum::nt-widc and Fiduciary financial statements. For loans that have a forgiveness
component and/or a repayment term greater than that of cooventional loans, an allowance is
recorded to more accuretcly present the net present value of these receivables The City's
June 30 effective rate of return of 1.31% on investments is used to discount these receivables
to their net present value.
Capital Assew
Capital assets (including infrastructure) are recorded at cost where historical records are
available and at an estimated original cost where no historical records exist. Contributed
capital assets are valued at their acquisition value at the date of contribution. Generally,
capital asset purchases in excess of SS,000 arc capitalized if they have an expected useful
hfe of two years or more.
Capnal assets mclude additions to public domain (infrastrucrure), certain improvements
including pavement, curb and gutter, sidewalks, traffic control devices, streetlights, sewers,
storm drains, bridges and right-of-way within the City The City has valued and recorded all
infrastructure assets, in excess ofSS0,000, in their entirety as of June 30, 2018.
Capital assets used m opcratioll.'I arc depreciated over their estimated useful lives using the
straight-line method io the Government-wide Financial Statements and in the Fund Fmancial
Statements of the Enterprise Funds. Depreciation is charged as an expense againstoperntions
and accumulated depreciation is reported on the respective balance sheets. The lives USOO for
depreciation purposes for each capital asset class are:
Pensions
Structures and improvements
I nfrnstrocture
Wells, reservoirs and tanks
Reservoirs and tanks
Water lioesfpipelines
Pumps & booster pumps
Vehicles and other equipment
20-SO years
30-65 years
40 years
60 years
OOy=
60 years
2-25 years
For purposes of measuring the net pcuslcn hability, deferred outflows of resources and
deferred inflows of resources related 10 pensions, and pension expense, informatioo about
the fiduciary net positioo of the City'� California Public Employees' Rcurcrncm System
(Ca!PERS) plans (Plans} and additions to/deductions from the Plan's fiduciary net position
have been determined on the same hasis as they are reported by the CalPERS. For this
purpose, benefit payments {mcluding refunds of employee contributions) are recognized
1. Significam Accounting Policies Ccontinucdl
when currently due and payable in accordance with the benefit terms. lnvcstmcnts arc
reported at fair value.
GASB 68 requires that the repnrtcd results must pertain to liability and asset information
within certain defined timeframes. For this report, the following time frames arc: used
Valuation Date (VD)
Measurement Date (MD)
Measurement Period (MP)
June 30, 2016
June)0,2017
July l,2016toJune30,20[7
Dcfcm;d Outflows/lnflows of Resow:s:es
[n addition to assets, the statement of financial pnsition will sometimes repnrt a separate
sccnon for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a con:rurnption of net pnsitmn that applies to
fumrc periods and so will not be recognized as an outflowofresourccs (expense/expcnduure)
until then. The City has five types of items in this category. \) Net difference between
Projected and Actusl Earnings on Pension P!an Investments is deferred and amortized on a
Streight-line basis over 5 years; 2) Deferred outflows from changes in tile net pension liability
are the results of contributions made after the measurement period, which are applied against
the net pension liability in the following year; and 3) Deferred outflows from changes in the
total OPEB liability are the results of contributions made after the measurement period,
which are applied against the 101111 OPEB liability in the following year; 4) Changes of
Assumptions is an amount that is deferred and amortized using an Expected Average
Rcmainmg Service Lifetime (EARSL) and 5) Deferred loss on refunding is reported in the
Statement of Frducsary Net Position. A deferred loss on refunding results from the difference
in the carrying value of refunded debt and its reacquisition price. This IIIIIOWll is deferred
and arncrnzcd over the hfc of the 2003 Tax Allocation Rcfunchng Bond debt, which is 10
years. Deferred outflows are reported only m the statement of net pnsnion, arising under the
full accrual basis of accounting
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future periods
and so will not be recognized as an inflow of resources (revenue) until that time. 'Ille City
has two types of items that qualify for reporting in this category. The first item, unavailable
revenues from various sources: taxes and grant mottles, is reported only m the gcvcmrncntal
funds balance sheet, and arises under n modified accrual basis of accounting. These amounts
an: defom:d and recognized as an inflow of resources in the period that the amounts become
available. The second item relates to inflows from changes in net pension liability, and is
reported only in the statement of net position, a.nsmg under the full accrual bears of
accounting. These inflows are the result of:
43
1. Significant Accowi1ing Policies (comioucdl
• Differences between Expected and Actual Experiences - This amount is deferred end
amortized using an EARSL.
Compensted Absnces
The employee benefits payable liability is recorded for unused vacation and similar
compensatory leave balances. The employees' cntnlemcnt to these balances is attributable
10 services already rendered and it is probable that virtually all of these balances will be
liquidated by either paid time off or payments upon termination or rctircmenL
A linbility is recorded for unused sick leave bnlances only to the extent that it is probable
that the unused balances will result in termination payments Other amounts of unused sick
leave are excluded from the liability since their payment is contingent solely upon the
occurrence ofa future event (illness) that is outside the control of the City and the employee.
These leave balances are accrued when incurred in the government-wide, proprietary, and
fiduciary fund financial statements. A liability for these amounts is reported in the
governmental funds only if they have matured, for example, as a result of employee
resignations and retirements.
Net Position
Net position is the excess of all the City's assets and deferred outflows of resources over all
its liabilities and deferred inflows of resources, regardless of fund. Net position is divided
mto throe capuons. These captions apply only to net position, which is determined only a!
the government-wide level and m the proprietary funds aml fiduciary funds. These captions
are dcscnbed below
Net inves/ment in capital assets. the portion of net position which is represented by the
current net book value of the City's capital assets. less the outstanding balance of any deb!
issued to finance these assets.
Renrtaed: the ponion of net position which is restricted as to use by the terms and conditions
of agreements with outside parties, governmental regulations, laws, or other restrictions
which the City cannot umlaterally alter. These principally include developer fees received
for use on capital projects, debt service requirements, funds restricted for low-and moderate
housing, grant funds and legally restricted sales tax revenues.
Unrestricted. the portion of net position which docs not meet the defimuon of "net
investment in capital assets" or "restricted net position".
Significant Accounting Policies {oontinued)
Net Positioo Flow As�umntion
Sometimes the government will fund outlays for a particular pusposc from both restncted
(e.g., restricted boM or grant proceeds) and unresmcted resources. In order to calculate the
amounts to report as restricted - nel position and unrestricted - net position m 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. When a fund consists
of both restricted and unres1rictcd resources, expenses arc considered to be apphed fi�t to
the restricted, then to the unrestricted.
F\lj)d Balance Flow A.��umption�
Sometimes the government will fund outlays for a particular purpose from both restricted
and unrcstncted 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 a:.sumption must be made
about the order in which the resources are considered to be applied. When a fund consists
of II combination of resources, expenses are considered paid first from restricted resources,
then from commiued resources, folJowed by assigned resources. Unassigned ftmd balance
is applied last
Fwid Eauity
In the fund financial statements, government funds report the following fund balance
classification:
Nonsoendablc include amounts that cannot be spent because they are either {a) not in
spendable form or (b) legally or contractually required to be maintained intact.
Restricted include amounts that are constrained on the use of resources by either (a) external
creduors, graruors, contributors, or Jaws of regulahons of ollwr governments or (b) by Jaw
through constitutional provisions or ennbling legislation.
Conunitted include amounts that can only be used for specific purposes pursuant to
constraints imp()Scd by formal action of the government's highest authority, City Council.
The formal action that is required to be taken to establish, modify, or rescind a fund balance
conunitmcnt is through the City's budget, which is adopted annually through a City Council
Resolution.
Assigned include amounts that are constrained by the government's intent to be used for
specific pusposes, but are neither restnucd nor corrunittcd. By reporting particular amounts
that ere not restricted or committed in a particular fund, the government has assigned those
amounts 10 the purposes of the respective funds. The formal action that is required to be
taken to establish, modify, or TC11Cind a fund balance assignment is through the City's budget,
45
1. Significant Accowning PoHcies (continuedl
which is adopted annually through a City Council Resolution.
Unassigned include Lhc residual amounts that have nol been restricted, committed, or
assigned to specific purposes. Any negative amounts in governmental funds are reported in
unassigned fund balance Only the General Fund can have a positive unassigned fund
balance.
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates
and assumpuoos that affect the reported amounts of assets, liabilities end deferred
inflow/outflows of resources at the reporting date and revenue and expenses dunng the
reporting period. Actual results could differ from those estimates.
2 Cash and Investments
Cash and investmcnlS arc presented in the accompanying statements as follows:
Statement of Net Position.
Cash and investments
Cash and investment.s wilh fiscal agent
Stalcmtnt or Fid�ciary Net Position
Cash and investment.s
Cash and investments with fiscal agent
Total cash and mvenment.s
S 132,491,768
90,423
13,366,211
5735157
$ 151,683,559
Cash and investments at June 30, 2018 consisted of the following:
Petty Cash
Bank Balance (net of outstanding checks)
rnveamenrs
Total
S 12,200
(l,021,Ul)
152 692 540
S 151 683 559
Investments Authorized by the California GoY1"mmenl Cude and the Ci!y's Investment
1'>liil
Under the provisions of the City's investment policy as amended periodically by Council,
and in accordnnce with Section 53601 of the California Government Code, the City may
invest in the followmg types of invcsuncnts:
• United Stales Treasury notes, bonds, bills or certificates of indebtedness, or other
securities for which the full faith and credit of the United Stales arc pledged for the
46
2. Cash and Investments (continued)
payment of principal and interest (Limits: Maximum time to maturity at purchase 5
years).
• Obhgatmru; or other instruments issued by any federal agency, or United States
government-sponsored enterprise (Limits: Maximum time to maturity nt purchase 5
years; maximum concentration 75% of portfolio wuh no more than 35% of total
portfolio in any single agency; and excluding Government National Mortgage
Association bonds).
• Money market mutual funds that invest only in securities and obligations of the
United States government (Limits: Maximum 90 days weighted average maturity;
maximum $15 million or 20"/o of portfolio, whichever is less)
• State of California Local Agency Investment Fund (Li mils: Maximum 35% of total
portfolio. This maximum hmrt is increased to 40% of total portfolio when there is an
influx of large deposits resultmg from called bonds. The 40"/o limit is allowed for the
next 30 days after the bonds are called so that the City can purchase other mvestmcnts
to bring the allowable percent.age back to the 35%).
• Certificates of Deposit approved by the California Al3 2011 (Limits: maximum
concentrate of30% of total portfolio).
• Conuncrcial Paper of prime quality having the highest ranking or the highest Jetter
and number rating provided by a national ratmg agency (Limits: Maximum maturity
of 270 days or less, maximum 20% of portfolio and no more than 5% of the book
value of the portfolio to a single issuer).
• Mcdium-tenn notes issued by corporations or depository instituuons organized and
opemung within the United States (Limits. Maximum time to maturity al purchase 5
years; maximum concentration 20% of portfolio at time of purchase; must be rated
"AA-" or better hy a nationally recognized mhng agency).
The City is 11 participant in the Local Agency Investment Fund (LAIF) that is regulated by
Cahfolllla Government Code Section 16429 under the everalght of the Treasurer ortne St.ate
of Califorrua. The fair value of the City's investment in this pool is reported in the
accompanying financial statements a! amounts based upon the City's pro-ralll shnre of the
fair value provided by LAIF for the entire LAIF portfolio. The balance available. for
withdrawal is based on the accounting records maintained by LA!F. The LAIF investment
portfolio consists primarily of U.S. treasuries, federal agency sceunues, certificates of
deposit, time deposits, nnd commercial paper.
lnY<istmcnts Authorized bv Debi Asrccmcnts
Investments of debt proceeds held by bond trustee are governed by provisioru; of the debt
agreements, rather than the general provisions of the California Oovellllncnt Code or the
City's investment policy. The investments authorized by these debt agreements include
Money Market Mutual Funds, federal Agencies with maturity dates not to exceed 5 years,
47
2. Cash and Investments (continued)
Treasury Bonds and Guaranteed Investment Contracts and have maturity dates of up to 30
years.
Risk Disclosun:�
lnlucsl Rate Risk. As a means of limiting its exposure to fair value losses arising from rising
interest rates, the City's investment policy requires, at the lime of the purchase (investment),
at least 15%, and no more than 50%, oflhc City's investment portfolio be invested from one
to 365 days; no more than 50% of the portfolio be invested from 366 to 730 days; no more
than 35% of the portfolio be invested from 73 l to I ,095 days; no more than 30% of the
Portfolio be invested from 1,096 to 1,460 days; and no more than 30% of the portfolio be
invested from 1,461 to 1,825 days.
At June 30, 20} 8 the City Treasury had the following investment maturities:
lnvewncnt Mo1uritic• (In Yean)
lnve:mne111T� fair Value <' .. , z e a 3 10 � ,,
F- - Loon San� S1S491i.!77 nem ll.,0,.16!
F<deral J,lotioMJ M1'. ""° .19.!l'JJ.W l'-720.1� lt<U.O.IO !.71S.67•
r..iu.i r ...... Cttid" a.ni: l<.6S<.017 9.tlS.'62 <.UI.ISS
Med"'"' Tmn Nole: - l.916.71) l.916.71l
Well, F""° 8ook S.946.MI H46J•I • M1amoft J.911.241 l,917.241 ,_
9,1171,044 9.!77,044
l.ocol Al=-7 ln-.ulm<nl P,nd ll.6CJ.l,11 !I.W3.l59
M""')" M"k<I M.....i f- J.IJl.491 J.l)i.491
Helclb)'tru<!<e; ...-Y Mtric• M.....i F...,, l.llS.624 l,IIS.62• u..s Truwty lland 1.411.611 1.<11.6n
f<dcnl Nauonll M,a. ,......_ ' M I !00.'6C ,� J1Sl.6'n.S-10 10.0$1!1•1 lS,60.l.&S9 l•.404.1(19 ll.lllt.lSl 1.411.611
Credi/ Risk. Credit risk is the risk that eaissuer ofan investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment ofa rating by a nationally
recognized st.Mistical ratmg organization. It is the City's policy to limit its investments to
the investment types with ratings identified under the Authorized hrvesrments sections above
(This section mtentionally left bl1111k)
48
2. Cash and Investments £contmuedl
At June 30, 2018 the City's credit risks, expressed on e percentage basis, arc llS follows:
Crcd't Quality Dimibution for Securities w11J1 Cffi:111 Exposure u a Pen:entage of TOW lnvestmems
lnve>tmem Type
Fcdcnl H<>m• Loe s •• k
Fcdcnl Nalional Mtg. A .. n.
Federal Fam, Cn:dit Bank
Minimum S&P %of
Ruing Ralina lnvealment1
N0101'Plic,ble AA+ JO.LS%
N01opphcable AA+ 26.19%
Not opplicoble AA.. 9.60%
Medium Term NOie:
A"k AA- AA• l.26%
Wells Fargo Bllllk AA- AA- 3.8')%
Microsoft AA- AAA '"" ,_
AA- AA- '"" Local Agency luvc,lmenl Fund Nol 1111ed NOi raled 33.80%
Money Market Muluol Fund Not •l'Jllicablc AAA 2.Sl%
Hold by tru,lcc:
Money Markel Mmual funda Not applicable AAA 1.84%
U.S. Treaswy Bond [)(empt Exempt .93%
Federal Nauonal Mli,. A •• n. Not applicable AA• .98%
Total "'""'
Concentraiion of Credi/ Risk Concentration of credit risk is the risk of loss attributed !O the
magnitude ofan entity's investment inn single issuer. The City's policy i!S to limitations on
the amount that can be invested in any one issuer is sdennflcd under the Authorired
Jnve:stment:s section above. Investments in any one issuer (excluding U.S Treasury
securities and external invcstmcm pools which arc exempt) can be identified in the table
above under Credit Rr:sk
Custodial Credit Risk Custodial credrt risk for depa:slt:s is the risk that, m the event of the
failure of a depository financial institution, a government will not be able to recover its
deposits or will not be able to recover co list era! secunuce that are m Lhc possession of an
outside party. The California Government Code requires California banks and savings and
loan associations to secure a city's deposits by pledging government securities es co!loteral.
The markel value of pledged securities must equal 111 least 110% of a city's dcposns.
California law also allows financial institutions to secure city deposits by pledging first trust
deed mortgage ootes having a value of 150% of e city's total deposits. Cities may waive
collateral requirements for deposits that are fully insured up to $250,000 by federal
depository Insurance. The City has not waived this requirement.
The custodial credit risk for investments is the risk lhal, in the event of the failure of the
counterparty (e g., broker-dealer) 10 a tronsaction, a government will not be able to recover
the value of its investment or collateral securities th.tt 11re in the possession of another party.
The City's policy is for all securities owned by the City to be held in safekeeping hy the
City's custodial bank, a third party bank trust departrnem, octing ea agent for the City under
the 1em19 of a custody agreement.
49
2. Cash and lnvestmems Ccommuedl
The City follows the practice of pooling cash and investments of a!l funds except for funds
required to be held by outside fiscal or other agents under provisions of the U.S. Department
ofHousmg and Urban Development or provisions of bond indentures.
Fair Ya!uc Measurements
The City categorizes its fair value measun:ment within the fair value hierarchy established
by generally accepted accounting prmeiples. The hierarchy is based on the valuation inputs
used TO measure the fair value of the assets. Level I inputs arc quoted prices in active markets
for identical assets, Level 2 inputs are quoted prices for similar assets in active markets, and
Level J inputs are significant unobservable inputs.
The City has the following recurrmg faur value measurements as of June JO, 2018:
lnvatrnaic T)p< rncs rn= erca
Mcd,u,n To,m Nole"
Apple
Wells �lrg<l lbnk
Micn:oofi ,..,
Hold by INSlee
U S Trea<ury Bond
falcrw.l N11ianal Mtg. Ann,
Total Leveled lnvcgtrKnti
l.oca! Ager. ln""'1!T\UU Fund'
Moocy Mark<! Muwal fund•'
H•ldbytruSt«
MO!l<y Mart<! Munl.ll t\lnd ..
Totol ln=unutponfolio
'
"""""' !npul5
Len:! l
IJ,496,S77
39,99],J!l7
14,654,017
\,916,713
S,"46,248
l,917.248
9,S77.044
l,41!,6T.!
l,500,160
$"4,441,266 S
,�
15,496,S77
39,993,887
14M4,017
1,916.711
S,9,46,248
l.937,248
9,S77,044
l,418.672
1,S00,860 ' 94,441,lflli
Sl,60J,U9
3,&32,491
lllS,624 ' I S2,692,S40
•No, 111bjcd lO r.,, Vll!uc mcaurcmmll.
(This space intentionally left blank)
50
3. Capital Aswts
Capital asset activity for the year ended June 30, 2018 was as follows:
Governmental activities:
Bqinoina Erulina '""'" ·- BollllCC
Capital .......
Ml bdna depruWed: - S S0,404,147 S0.404,l47 R,Jhts or,..� J44,M.'l,0% l,679,100 621.300 346.896,896
Coostruction in pro� 6,86.'l,304 14,06J,•16 l,'66.87S 1&.461,&4.'I
Total capital useu.
not beio1 dfpre,;olled •J!,l 14,547 16,741,$16 l,094,17.'I 4-0,762,W ""�- tit.Ina depreclal<d· ·-- 200,878,UO 7,746 . .'ll.'I 1,171,.222 207.448,041 ,_ ...
impro,omc,11:1 108,200,217 l,346,SlS 37.282 109.m.no
Fumitun:, fixtwa ond
"'l•lpm<nl 41,926,7.'I] 1192S1S9S ;!,lll,5<19 4l,7J0,799
T<IW capilGI .... .._
being dq,m: .. lcd l.'11100.'11720 11,01&.9'1.'I l,ll6.0.'ll Hl688,!ill
I.cu IIC<:Umlllllcd
d<p=illion far
lnlll.sUuc1um BU86 .'IJJ J.691,7]9 714.699 M.J6l.l7l
S11\1<111res tnd impro>emcnts ll,042,919 2,274,388 H,117,127
fomiru«. r .. tures 11\d
equipmrnl 2.'l,4JJ,62.'I �69&.262 2.G6.'l.:!4J 26,064,.'144
Tota\ occumulllcd
dq,rt,:111,c,n 1!9M1.!!!7 S,664,J89 i!,780,041 14.'l,7'.'l,4«
Total ...,,I.al�
being dcprecir.1«1, n<t 211,111,623 :!,lS4,SS6 S56101 I 21:1,941,168
Go•muucnW octi•ilics
cap,lal ....u. i><I S643JS9, 110 19/J97,072 3,6SO,l86 iSjS,706,056
(This space imentionolly left bionic)
51
]. Capital A�scts (continued)
Business-type activities:
Beglnnln& Endln&
ll•l•r>ee Increase llalancc
Caplml :weu, not
being deprecia!Cd: ""' I 2,646,932 2,646,1132
Construction in
ProW?SS 8261735 3,674,403 JJSO 4,497,888
Toto! oapilll ute!i, no1
bc,ng doprc<:i�ted J,473,667 3,674,403 lJSO 7,144,820
Qpltal meu. belng
dep«elated
Bldr,s and strUCtures 2,823,6'18 2,823,648
lmprovemems other
than building.,
Wells 10,600,617 10,600,617
Water 1ank., 15,747,486 l,2SO 15,7S0,7J6
Wiier line., 91,235,252 9&,235,252
Sewer 66,733,916 32,674 66,766,590
Stwm dr1nn, ll l,561.308 252,058 111,813,366
Maciiinery and
Equlpmem l01304J43 129,432 23,)59 10,410,516
Toi.II oapiLOI aw:l!
be ins dcpn::o .. 1od 316006470 417414 23 159 316400725
l.c!I• 1ccumul•1cd
depn,c10!ioo for
Bldg, ond mllclure> l,410,290 98,358 1,501,641
hnprovcrneni. other
than l>l,ildin1w
Well, 2,501,192 254,736 2,757,928
W•ter llnks 7,333,772 261,637 7,393,409
Wiler L,r,e, 60,902,422 1,607,207 62,309,629 ,._, 40,270,395 l,04S,93S 41,316,330
Stom, dr1in, 70,626,073 1,137,047 72,463,120
M1ch,ne,y1r>d
Equ,pmm! 2J97JSI 195,748 23,159 2,#9,840
T<ml accumulated
Dt:?=iatlon l85J43139S S,l00,668 ll,159 190,620,904
Total cap,t�I assets, being
deprt:eialed, net 130,66),075 \4,883JS4l 3JSO !2S1779,B2l
Bu,ine,Hype ICIIVi!i""
tlll)�l assets, net S 134,136.7�2 {!.208,SSl): J,250 132,924,641
-, ,_
3. Capital As.5@1 (continued)
A, of June, 30, 20! 8, lh• City Md the following outstandlllj p11rchase commiunem.s
Ma.J<>r pun::hau ord•r C<l,,.,,;lmnn<s:
Fund In �"""'"
Nein M>J<>r
Spocial C.phal
R.ov.nuo l'T"'""""'"' rn,o,prl<o To,al
'in6.SJ4 97�.$34 1.936.915
l.?:19.000
!>43.480 !,4).4-80 =,� 4"7 744
916,51-4 5'11,�RO ...,.,,744 eeen
C.pl!al
I"!' rnvem< nt Projoc,:
P&vamont Man-a"""'"' Progn,m S
Shatlit,r Pa,k Ren<ivat,nn 1.936,915
Mouollnk Parl<lnJI Structun, 1,999,400
S<ewc,r Unc R.opl&caman1/Maln1.
Plpoll<to R.onawal l'rojocu
Total :,,::::,,, •• ,,,.,,c
.,C•l:=:ll,IE:===]jii;,l![=:::,,,:,,=:::,,l,:O,t
Depreciation expense was charged to the following functions in the Statement of Activities.
Govcm111en1al Bu,incs,-T ypc
Ac1ivi1ics ActiviLics
Gcncn,l j!;OVCmrntnl • 131,322
Public sarciy 1,307,865
Public wo,ks J,912,764
Plntl and library 1,492,571
Economic dcvclopm<ml 108,334
Internal Service Funds 1,509.533
W1tcr 2,417,686
Sani11uon 2 &&2 9112
Totol S&,664 389 5.300668
,. :rm,
Property taxes ere attached 11s 1111 enforceable lien on property as of Janu11ry I. Taxes nre
levied on July I and are payable in two installments on December 10 and April 10.
Any unpaid amounts at the end of the fiscal year are recorded as taxes receivable in
accordance with the City's accrned revenue policy as Stated in Note I. The County of Orange
bills and collects the property taxes and subsequently remits the amount due to the City of
Orange m installments dunng the year. Historically, the City has received sucstentially all
of the taxes levied within two years from the date they are levied
The County is permitted by State Law (Article XIII A oflhe California Con�titution) to levy
property taxes at one percent (I%) offult market value Rt time of purchase and can Increase
the property's value no more than two percent {2%) per year. The City receives 11. share of
this basic levy proportionate to what it received in the 1976 to 1978 period.
53
4. Taxes (continued)
Tbe City entered into participation agreements to abate sales tax with two local businesses
under the City of Orange Municipal Code Section 3.25 Sales fax Sharing Program. Under
the code, the C11y may grnnt sales tax abatements of the amount of sales tax a business
generates within the City, for the purpose of anracting or retaining businesses WJthin their
jurisdictions. For the year ended June 30, 2018, the City abated sales laxes totaling
$2,294,065 under this program, including the following tax abatement agreemcms that each
exceeded 10% of tile total amount abated:
• A 50"/o sales tax abatement to a petroleum brokerage provider for employment
retention/creation and business expansion in the City. The abatement amounted to
$2.232,269.
5. Other Revenues
Other revenues in the General Fund consist mainly of reimbursement for the Annual Street
Fair and reimbursements from other agencies for emergency services provided.
6 Retirement Plan
Plan Pcscdotion, Benefits Provided and Employees Covered
The City contributes lo the ('.a!ifomia Public Employees' Retirement System (Cal.PERS), an
agent multiple-employer public employee defined benefit pension plan (the Plan). Cal PERS
provides retirement and disability benefits, annual. cost-cf-living adjustments, and death
benefits to plan members and their beneficiaries Cal PERS acts as a common investment and
admuustrauve agent for participating pubhc entities within the State of Cahfonua. Benefit
provisions and all other requirements are established by state statute nnd memornnda of
understanding witb employee bargaining units 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 CalPERS June 30,
2015 Amnwl Actuarial Valuation Report. Details of the benefits provided can be obtamed 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 under
Employers.
The Plan provides benefits for two membership ctassaicauons, Miscellaneous and Safety,
and those benefits arc tiered based upon date ofCalPERS membership. Safety membership
is extended to those in active law enforcement and fire suppression, while al! others are
classified as Miscellaneous members. Assembly 8111 (AB) 340, also known as the Pubhc
Employees' Pension Reform Act (PEPRA), created new benefit fonnulas Md a final
compensation period as well as new contribution requirements for new employees For the
purpose of PEP RA, ''new employees" arc those hired on or after January l, 2013, and had
never been a member of CalPERS previously All employees hired prior to January 1, 2013,
'"
6. Retirement Plan (continued)
or whom, regardless of their hire date had previously been a member of Ca!PERS, will
continue to be covered under the prc-PEPRA plan. All "new employees", per PEPRA, will
not be eligible for this plan, and instead will be covered under the PEPRJ\ tiered plan. A
sununary of the plan benefits is provided below:
Ml$cellancou•
H,r,: 0..Lc
Bcncf>t fonn.1la
l.lcnefil v""ting Jehcdu 0,
Benefit poymen!S
R.c1ircmen1 e>Ke
Monhtly bendd,, u • % of cl1J!ib0, cu�noalion
R.cquared e"l)loyee conmbmlon """"
R.cquin:d c""loyc, C<lntnbu!ion ntLCli:
Nol"TTII.I co., rate
Payment ofunfunded habllny
Hire Date
BcncC.1 fonnukL
Bcncf� veohns schedule
Bcnef>t paymcnLs
R.etircmcnt age
Mon1hly benell,s. u a % of eligihO, eo"l'enntion
Required •f11>loyee conu'lbmlon r,ues
Required c1rploycrcon<ribution r.tte<:
NomwJ COU l"'IIIC
Payment ofunfunded h•bil�y
'
'
Priono
Janu"IY 112013
2.7%@55
Sy...nofacrvicc
m>nthly fbr lifle
S0-67
2.0%. 2.7%
"'
L0.495%
5.(1911.2&4
Safle,
Pnorto
January 112013
l.ll%@ so
S ycan or,ervke
mo11d1ly forlife
SO - SS '""' �
18173%
1,392,025
On or Aller
Janu"IY l, 2013 "'®" S ye�,. ofrervice
m>nLh!y forl1fc
,2-67
l.O'A - 2.S'A ,.,.,
10.495%
On or Aller
Januory 11 2013
2.7%@51
S year, or.ervlce
monthly ror li!C
SO- 57
2.0%-2.7%
"%
111.173%
Al June 30, 201 g, the following employees were covered by the benefit terms of the Plan·
Inactive employees or beneficrertcs currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
Corunbutwn Descriotion
Misc
613
468
lli
Ll.lJl
"""'"' 432 "' "' ill
Section 20814{c) of the Califomin Public Employees' Retirement Lnw (PERL) requires thnt
the employer contribution rates for all pubhc employers are determined on an annunl basis
by the 11ct1Ulr)' and shall be effective 011 the July I following notice of a change in the rate
The total plan contributions nre detennined through CalPERS' annual actuarial valuation
process The actuarially determined rate is the estimated amount necessary to finance the
55
6. Retirt"ment Plan (continued)
cost of benefits earned by employees during the year, with au additioual amount to finance
any unfunded accrued liability. The employer is required 10 contribute the difference between
the actuarially determmed rate and the contribution rate of employees. Employer
contribution rates may change if plan contracts are amended. It is the responsrbiliry of the
employer to make necessary accounting adjus1mcnts to reflect the impact due to any
Employer Paid Member Contributions or situations where members arc paying a portion of
the employer contribution.
Actuarial Methods and Asswnotions Used to Determine Total Pension LiabiliJY
The City's net pension liability for each Plan is measured as the total pension liability, less
the pension plan's fiduciary net position. The net pension liability of each of the Plans is
measured as of June 30, 2017, using an annual actuarial valuation as of June 30, 2016 rolled
forward to June 30, 2017 using standard update prccedurea. A sununary of principal
assumptions and methods used to determine the net pension liability is shown below:
Vd . .111UOnO..lc
Measurcm:N o..,.,.
/\Ctwliol Co•t Mellnd
Miocelk,,...,o,...
,...., 30, 2016
J.ne30,20l7
UV)" Ai,:: Nonn,.l Coot
Mo-
Sakty
J..-.e 30, 2016
i.. ... ,30,2017
£nlry Age Nonnol Coat
Mett>od
/\etuarlol /\nLinl)tions
D&COin Rllle
lntlation
Proje(:ted Sabry Increase,,
Mortal,;y Rate Tahle
Po"' Retirement 8"nefk<I Income
7.15% 7.15%
27S% 2.n% rn '" '" '" "' '"
(l J Di,pendS18, on ai,:, ..,rvi,;:� and I)'(>" of elr()loyme,.
(2) llle probabllkies ofmono.lty arc derived usi,& CalPERS' n,elmCrship da!ll f:lr aD finis.
TI.. nnrtalily table us,,d was d�vd::>["'d baoed on Call'ERS' sp,:cihC daia. TI,o <ab"lo
..Ch.de• 20 year,; ofm:1ru1lj;y rrc>roveme,u usi,& Society of Actuaries Scale BB.
f"or more de<aih on 1hi5 <able, pie,,.., reti:r to the 2014 experlenc" study report.
(3) Comract COLA up to 2.75% urua Purdiasina Power Prolcetion Allowance Fhuron
P=huSl8, Pov,,cr appl.,,.. 2. 75% thcreafb:r.
All other actuarial assumptions used in the June 30, 2016 valuation were based on the results
of 11n actuarial experience study for the period from l 997 to 2011, including updates to salary
increase, monality and retirement rates. The Experience Study report can be obtained at
Cal PERS' website under Forms and Publications.
Changes in Assumptions
The accounting discount rate reduced from 7.65 percent 10 7.15 percent during the
mcasun:menl period 06/30117. Deferred inflows of resources for changes in assumptions
presented in the financial statements represent the unamortized portion of the changes in
assumptions related to prior measurement periods.
56
6. &ti[(ment Plan (continued)
Discount Rat�
The discount rote used to measure the total pension liability was 7.15 percent for each Plan
and reflects the long-term expected rate of return for each plan net of investment expenses
and without reduction for administrative expenses. To determine whether the mumcrpal bond
rate should be used in the calculation ofa discount rate for each plan, Cal PERS stress tested
plans that would most likely result in a drscoum rate that would be different from the
actuarially as.rurned discount rote. Based on the testing of the Plans, the test revealed tile
assets would not run out. Therefore, the current 7 15 percent discount rate is appropriate and
the use of the municipal bond rate calculation rs not deemed necessary. The long-term
expected discount rate of 7.15 percent is applied to all plans in the Public Employees
Retirement fund (PERF) The cash flows used in the testing were developed assuming that
both members ond employers will make their required contributions on time and as scheduled
in all future years. The stress test results are presented in a dellliled report called "GASB
Crossover Testing Report" that can be obtained at Ca]PER.S' website under the GASB 68
section.
The Jong-term expected rate of return on pension 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 pension plan investment expense and ioflation) are developed for
each major asset class.
In determirung the long-term expected rate ofretum, Cal PERS staff took irao account both
short-term and long-term market return expectauons as well as the expected pension fund
(PERF') e11Sh flows. Taking mto account historical returns of all the Public Employees
Retirement Funds' asset classes (which includes the agent plan and two cost-sharing plans
or PERF A, B and C funds), expected compound (geometric) returns were calculated over
the short-term (first 10 years) and the long-term (I 1-60 years) using a building-block
approach. Using the cxpeeted nominal returns for both short-term and long-term, the present
value of benefits was calculated for each PERF fund. The expected rete of return was set by
calculating the single equivalent expected return that arrived at the same present value of
benefits for c11Sh flows as the one calculated using both short-term and long-term returns.
1be expected rate of return was then set equivalent to the single equivalent rate calculated
above and ronndcd down to the nearest one quarter of one percent.
The following table reflects long-term expected real rate of return by asset class. The 111\e of
return was calculated using the capital market assumptions applied 10 determine the discount
rate and asset allocation. The target elfoceuon s1town was adopted by the CaJ PERS Board
effective on July I, 2014.
57
6. Retirement Phm fcoruinucdl
C111TIOnt
T•rgel Keal Relum Real Return
Auel a,us Alloc>1liun Ve•n 1 - 10 fl Vean 11+<:i:
Global " 47 00% 4.90% S.38%
Gk>b,dFixed lncomo:, 19.00 0.80 2.27
lnfl"'ion Sensitive s.oo 0.60 1.39
PrMl.ll.: ui,v 12 00 6.60 6.63
Rea! Estate I 1.00 2.80 s.a I
�,muccurc and l'orei;tllind ,.oo 3.90 S.36
uidit 2.00 0.40 -0.90
Total 100.00%
(l) An expected inflation of2.5% used for this period
(2) An expected inflauon of3 0% used for this period
Subseguent Events
There were /IQ subsequent events that would materially a!Tect !he results in this disclosure
Pension Plan Fiduciary Net P9siuoo
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may
differ from the plan assets reported in the funding actuarial valuation report due 10 several
reasons. First, for the accounting valuations, Call'ERS must keep items such ai. ddiciency
reserves and fiduciary self-insurance included as assets. These amounts are excluded for rate
setting purposes m the funding acruanal valuation. In addition, diffcrunces may result from
early Comprehensive Annual Financial Report closing and final reconciled reserves.
[Ibis space mttntionally left blllflk)
58
6. Retirement Plan Ccontmuedl
Changes in the Net Pcnsi11n Liabilitv·Misccllaneous Plan
I he following table shows the changes in net pension liability for the Miscellaneow; Plan
recognized over the measurement period.
Increase fDecreas,:)
Total Pc""ion Pion Fiduollll)' Net Pcmoon
Liability Net Pos�ion Liabililyl(Assets J
'" "' {c)"'fa'-"''
Babnce at 6130/ZO 16 IMea.surcment Do.te' $319,863 128 $226 366 382 ' 93 496,746
Chang,,• Rccogni>ed fur th: Mc8'1ururrenl Period
Service Cost S,177,802 . S,177,802
lntere!il on the Total Pcmoon Liabi!-.y 23,418,521 . 23,418,521
Oilli,rcnce between �led and Actual
Expenence (S,876,562) . (S,876,562)
C�• of Ass�toons 18,989,623 . 18,989,623
Plan to i'bn Resource Moviemem . 32,777 {32,777)
Conlribution from th: �loyer . 7,498,423 (7,498,423)
Contributions from Employee• . 2, 142,096 (2, 142,096)
Net lm..,stmi:rrt ln:;:ome . 25,473,940 (25,473,940)
Benefit Pa�nts inclidina R.efurxls of
En"'byee Contributions (16,066,665) (16,066,665) .
A<lRlm!ltn!.tM> c,, = MJ4,2]5 334215
Net Cha ' 2016-17 25,642,719 18.746 356 6.896 363
Bala.nee at:6130/2017 IMusurcmem Dalel $345 SOS 847 $245112738 ' 100 393 109
Sensitivity of the Mh.celJaneous Plan Net &erui10J1 L1abihtv IP Change> in the Discount Rate
The following presents tile net pension liability of the Miscellaneous Phm as of the
measurement date, calculated using the discount rate of 7. IS percent, as well as what the net
pension liability would be if it were calculated using a disco um rate that is I percentage-
point lower (6. 15 percent) or I percentage-point higher (8. IS percent) than !he current rate:
DISCOllll Rmc · I% CITTCnt lmcolDlt Rate Dscous Rate +I%
(6.15%) (7.15%) {8 !5%)
Plan's Net Person s 145,983,038 $ 100,393,109 $ 62,786,674 Litbilty/(Asscts)
59
6. Rt:tirrmml Plan (e-0ntinued)
Chaoses in the llit Pension Liability-Safety Plan
The following table shows the changes in net pension liability for the Safety !'Ian recognized
over the measurement period.
!n:reai.e (IJ\,crease)
Total Person PM Fi:.11.1.:iuy Net PetlSIOn
Ulbilny Net Posioon Lilbility/(Asscts)
,,1 (b) (c}=(a}-(b)
Babnce Ill: 6/30/lOl 6 easurernent Dare} $471,584,852 $324,675,256 ' 146,909,596
C�s Recopii7.ecl ilr the Meast.l'Crnent Penod:
Servi:e Cost 8,663,044 - 8,663,044
Interest on Im Total Person Liabilily 34,973,049 - 34,973,049
Dillerencc between Bapccrcd a.rd Actual
Experience (4,567,911) - (4,567,911)
Changes of Assun1)tiol"$ 29,689,823 - 29,689,823
Pbn to Plan Resource Movement - I, ll l (1,111)
Comilution from the �loyer - 12,304,411 (12,304,411)
Contributions from �kiyees - 2,785,504 (2,785,504)
Net lnvestmelll Ireone - 36,448,582 (36,448,582)
Benefit Paymen!S 0::JooT€ Refin:ls ofF.ntiloycc
Cormiburions (23,809,456) (23,809,456) -
AdmiuisD ative rse (479,361) 479,361
NetC �6-17 44,948,549 27,250,791 17,697, 758
Babnce at 6130f2017 easurernent Date\ $516,533,401 $351,926,047 s 164,607,354
Sens1tjvj1y of the Safety P)an Net Pension [,iahihty to Changes in the Discount Rate
The following presents the net pension hability of the Safety Plan es of the measurement
dale, calculated using the discount rate of 7.15 percent, as well as what the net pension
liability would be if it were calculated using II discount rntc that is I percentage-point lower
(6.15 percent) or I percentage-point higher (&.IS percent) than the current rate.
01$COun: Rli!c - J % C......,,. Ol$cour( Rlite Oi5<:oln: Rlote + l %
{6.1�%) (7.IS%) (II.IS%)
Pb.n's Net Pens.ion s 236,658,58] s 164,607,)54 s 105,747,444 Liibillyl(A=,t:i)
60
6. Retirement Plan ((:onimued)
Recosnition ofGaiM and Losses
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary
net position are recognized in pension expense systematically over time.
The first amortized amounts arc recognized in pension expense for the year the gain or loss
occu.n. The remaining amounts ere categorized as deferred outflows and deforrod inflows of
resources related to pensions and are to be recognized in future pension expense.
The emcrnzauon period differs depemling on the source of the gain or loss:
Difference between projected and
actual earnings
Al! other amowns
5 year straight-line amortization
Straight-line amortiz:uion over the
average expected remaining service
lives of all members that are
provided with benefits (active,
inactive, and retim:!) as of the
beginning of the measurement period
The expected average n:maming service lifetime (EARSL) is calculated by dividing the total
future service years by the total nwnbcr of p!an participants (active, inactive, and retired)
Note that inactive employees and retirees have remnmmg service lifetimes equal to 0. A!so
note that total future service is based on the members' probability of decrementing due to an
event other than receiving a cash refund.
The EARSL for the Miscellaneous Plan for the 2016-17 measurement period is 2.1 years,
wluch was obtained by dividing the total service years of 3 ,069 (the sum of remaining service
lifetimes of the active employees) by l ,430 (tile total number of participants: active, inactive,
and rchrcd).
The EARSL for the Safety Pten for the 2016-l 7 measurement period is 4.0 years, which was
obtained by dividing the total service years of3,l 52 (the sum of remaining service lifetimes
of the active employees) by 797 (the total number of participants: active, inactive, and
retired).
Pension Expense and [}efeqed Outflows and Deferred lnflows of Resources Relaled to
Ptnsions
As of the start of the measurement period (July l, 2016), the net pension liability is
$93,496,746 for the Miscellaneous Plan and $146,909,596 for the Safety Plan.
61
6. Retirement plan (eontinuedl
For the measurement period ending June 30, 2017 (the measurement date), the City of
Orange incurred e pension expense of $15,667,577 for the Miscellaneous Plan and
$20,771,274 for the Safety Plan, allocated as follows:
Govemmcrtit! Bu:sR:ss-type
Activties Acllvhl8 Fd�iarv Finis Totals
Miscell:IIJ.':OU:S PW\ $ 12,377,370 s 3,133,Sl I s 156,676 s 15,667,557
So.�rv Plan 20,771,274 20,771 274
Total Penson = $ 33,148,644 s 3,133,Sl I s 156,676 s 36,438,83 l
As of the end of the measurement period {fone 30, 2017) and as presented in the June 30,
2018 Statement of Net Posiuon, tile net pcnsiou liability is $100,393,109 for the
Miscellaneous Plan and $164,607,354 for the Safety Plan, allocated as follows:
Oo""'mmcnu,I 8t11ness-type Fiducwy
ActMlic,; Actlvilies '"""' Total,,
M�ellaneous Plan • 79,310,558 S 20,078,621 S 1,003,930 $100,393,109
Saletv Plan !6<! 607 3H 164,607,354
Total Net Pension Liabl · s 243 917,912 S 20,078,621 S 1,003,930 $265,000,463
As of the fiscal year ended June 30, 2018, the City of Orange has defrm:d outflows and
deferred inflows of resources related to pensions as follows:
Miscellaneous Plan
De!i!,m:d
Out6ows of De!erTed ln!lows
Resources ofResow..:es
Pension contnbutions subsequent to measuremen1 date ' 7,865,000 s -
Cho.rlge of Assumplions 9,946,945 -
Dlfl'erenc:es between Expcet�d and Aclu>ll �nenc:es - (3,090, IS 1)
Net Diflerence between Projected and Acl,._.,I -
Earrun- on Pensicm Plan lnvestrrents 3 013 274 - Total $ 20825219 $ 13090151
62
6 R,etin;ment Plan (continued)
Safety Plan
DcR:rn:d
Outflows of Dele=d Inflows
Resources of Resources
Pension contributions subSC<jU::m 10 n1C11Surement date $ 12,903,531 ' .
Change of As5urnptions 22,267,367 (2,038,806)
DdR'rences between Expected and Actual Expcrieroc:cs . (5,187,587)
Net Difli'Tence between Projected and Aclu11l .
" . on Pensocm Phn lnvcstmcu\8 4 552,541 .
Tow.I $ 39 72] 439 ' c7 226 393
S20,768,SJ l reported 115 deferred outflows of resources related to contributions subsequent
to lhc measurement date will be recognized 115 a reduction of the net pension liabrhty m the
year ended June 30, 20! 8.
Amounts reported as deferred outl\ows and deferred inflows of resources related to pensions
will be recognized in future pension expense as follows:
S Ii Pia M" llaneo Pia �· � " a crv " Deferred Deferred
Fiscal Year Outflows/(lnflows) of Ol.dlows/(lnflows) of
ended June 30: --· ResOU'l:CS
2018 $ 6,000,923 ' 2,316,175
2019 ' 4,437,231 ' 11,749,316
2020 ' 1,345,246 ' ll,242,993
2021 ' (l,913,332) ' (2,714,969
2022 . .
lbereafter . .
At June 30, 2018, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2018.
7. Insurance Programs
The City is exposed to various nsks of loss relnted to torts, lhcft, damage and destruction of
assets, errors and omissions, road and walkway design hazards, vehicle aecidcnts,and natural
disasters for which !he City maint.nins various insurance programs. The City has entered into
contracts with outside vendors to supervise and administer these programs. In addmon, the
63
7. Insurance Program� Cwntinucd)
City completes an annual actuarial analysis for the Workers' Compensation and Liability
Funds to determine appropriate fi.mding levels.
General Liability
The City is self-insured for General and Auto Liability claims up to $350,000 per occurrence,
For amounts in excess of $350,000 and up to $3,000,000 the City participates in a public
entity risk pool maintained through the California Insurance Pool Authority (CIPA). CIPA
is a consortiwn of California cities under one joint powers authority agreement. which was
established to pool resources, share nsks, pu.rch!l!le excess insurance, and to share costs for
professional risk management and claims admmistration. For amounts in excess of
SJ,000,000, the pool purchases conunercial insurance and has coverage up to $33,000,000.
Workers' Comvensation
The City has a sclf-inswance program for any liability to City employees arising under the
Workers' Compensation laws of the Stale of California The City pays up to $500,000 per
occurrence. For amounts in excess of $500,000 and up to $3,000,000, the City participates
in ClPA. For amounts in excess of $3,000,000, the pool purchases commercial insurance
and bas coverage up to $53,000,000 per occurrence.
Liabilities are recorded when II rs probable that a loss has occurred and the amount of the
loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported (IBNR). The liability for claims and judgmenlS is rcponcd m the
appropriate Internal Service Fund. An amount for current claims payable is calculated based
on the current year expenses and the remainder is shown as noncurrent claims payable.
Changes in claims payable for the year ended June 30, 2017 and June 30, 2018 are es follows:
Gonorol Worlr.e111'
Liabil,!l: Com�sation Toials
Unpaid clo,mJ, July I, 20 16 ' 2,070,llO 9,890,282 11,960,612
Incurred clainu l.09!,434 6,462,623 7554,057
Lcs3 claim payment! (918,638) Q,984,272) !3,002,910)
Unp.,d cloiml, June JO, 2017 2,243,126 13,368,63) IS,611,759
Les,; cum:m pon,on of
unpaid cloimJ (728,272) (3,195,91 IJ (],924,18])
Noncum:nt unpaid claim•, Juno 30, 20 17 ' 1 Sl4 U4 10172722 11 687 576
Unpaid clalms, July l, 20 17 2,243,126 13,368,633 IS,6ll,7S9
locurred cJ1lms 1,039,399 3,542,762 4,582,161 Leu claims payments (681,441) (2,462,145! \3,l4J,S86)
Unpaid claiml, Jun<: 30, 20 18 2,601,054 14,449,250 17,0S0,334
Less cunont ponion of
unpaid claim ( 987,235) 3,832,336 41819,Hl
Noncum:nl unpaid cl"'ms, Juno )0, 201 8 ' l,6!3,849 l0,616,914 12,230,763
8. Other Post Employmen1 Benefits (OPEB)
Plan Dcscriotion
lbe Cny administers an Agent Mul11ple-Employcr defined benefit posH::mployment
healthcare plan for eligible City retirees and their dependents through the California Public
Employees' Retirement System (CalPERS). Rettrces from the City enrolled m the Public
Employees Medical and Hospital Insurance Program (PEMHCA), who retire at age 50 or
later 1U1d have at least 5 yearsofscrvice m the Cal PERS system arc eligible for these benefits.
These health insurance benefits arc authorized through City Rcsolutions/Memorandas of
Understanding defining health care benefits and contribution levels and through the
contractual agreement between the City and Ca!PERS. The City currently contnbutes SI 33
per month for each retiree and the retiree is responsible for the balance of the premium
amount.
Emolovi:es Covered
As of the June 30, 2017 actuarial valuation, the following current and fonner employees
were covered by the benefit terms under the plan:
Inactive employees or beneficiaries currently receiving benefits 269
Active employees ill
Total 890
Tollll OPER J.iabiljty
Tbe City's OPEl:l liability of $31,590,309 was measured as of June 30, 2017 and was
determined by an actuarial valuation es of June 30, 2017.
(This space intentionally left blank)
65
8. Other Pos\ Emolovmeot Benefits (OPEBl (continued)
Actuarial Assumptions wd Other Inputs
The total OPEB liability as of the June 30, 2017 acnwrial valuation was dctennined using
the following acruarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:
Valuation Date June JO 2017
Measurement Date June JO 2017
Actuarial Cost Method Em -A e Nonna! Cost Method
Actuarial Asscmpuoos:
Discount Rate 3.50%
Inflation 2.75%
Projected Salary Increase 2.875%; Additional merit based increases
based on CalPERS Merit Salary Increase
Table
Expected L<mg T,� Investment
Rate of Return 3.50%
Health Care Cost Treml Rates 7% in firs! year, trending down to 3.84%
over 58 years
Pre-retirement Turnover Derived from CalPERS OPEB Assumption
Model revised December 20, 2017
Mortality Rate Derived from CalPERS OPEB Assumption
Model revised December 20 2017
The dlecoum rate used to measure the total OPEB liability is 3.500,i,. The City's OPEB Plan
is an unfunded plan, therefore the discount rate was set lo the rate of tax exempt, high-quality
20-year municipal bends, PS of the valuation date.
Changes in Tota) QPEB Liability
The changes in the OPES liability are as follows·
Total OPEB Liability
Balance as of June JO, 2016 (Measurement Date)
Changes in the Y car:
Service Cost
Interest on the total OPEB liability
Contribution - employer
Implicit subsidy fulfilled
Net Changes
Balance at June 30, 2017 (Measurement Date)
66
$30,329,328
1,322,024
J,087,864
(394,850)
(754,057)
126098!
$31,590 309
8. Other Post EmploymenJ Ben'rfi!s (OPEBl (continued)
Sensitivity of the Tot@[ OPEB LiabiHlY to Changes in the Discount Rate
The following presents the total OPEB liabihty of the City, calculated using the discount rate
for the Pl1111, as well as what the City's total OPEB liability would be if it were calculated
using a discount rate th.at is I percentage point lower or I percemage rate higher than the
current rate:
Total OPEB Liability
Discount Rate
- 1%
(2.50%,)
$35,857,179
Current
Discount Rate
(3.SOo/o)
$31,590,309
Discount Rate
+ 1%
(4.50%)
$28,050,405
Seosiiivjty of the Tota) OPEB Liability to Cluwges in the Healthcare Co..i Trend Rates
The following presents the total OPEB liability of the Ctty, as well 113 what the City's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are l
percentage point lower or I percentage rate higher th1111 the current healthcare COS! trend rates·
Total OPED Liability
!Yo Decrease
6% Dc<.:n:asing to
2.84%
$27,341,001
Cumnt Healthcare
Cost Trend Rates
7% decreasing to
J.84'Yo
$3 1 ,590,309
1% Increase
8% Decreasing
lo4.84%
$36,910,lSl
QPEB Expen�e @nd Deferred Outflows of Resources Related to OPEB
Contributions subsequent to measurement date
Implied Subsidy
Total Deferred Outflows
Deferred Outflows
ofResoun;cs
$427,427
780.449
$] 207 876
(This eecuon intentionally h:ft blank)
67
9. Lone-Tenn Liabilities
Following is a reconciliation of long-term liabiliues for the year ended June 30, 2018: _, -· ....... ,M .. Ouo W,1tnn �- .. _ -- -� - o,,.y .. �,- Oo•o•m•....,lall<lf,o ....
l.'*11 Payabk: S'll.10l 16.970 !3'.7ll '"" ··- Cott.pc, ..... .._ HJl'll.1&4 H20.17J Mll.SO:Z 1.062..l!l l,617,76l ........ m a ...... l"l)"Obl• ll,611,1!9 •,ill,161 1,10�11. 11,050,!l-l • ll9�11 12)J:!!.2� TOtll Govmimeotal oct. ll.669.1•0 1.7!1.0ll 6.n6.Jll 15,6ll,lll2 I.SIS.911 11.IJ!.OI e .. ,n<»-17P< "'""ia -·- eze l�IS Sll,#1 IOol,"93 •S0/1'1) ,., n•,.p1,m l,J!llll7 6.9221613 16�,.- H104ll 171!16�U
In April 2018, the City entered into II series of loan agreements with Southern California
Edison for LED rdrofit of city-owned streetlights. The loans total $555,703 and carry a zero
percent interest rate. Future principal payments range from $78,654 to $27,Jn through June
2026 The outstanding balance at June 30, 2018 is $538,733.
The annual payments are as follows:
2018-18
2019-20
2020-21
2021-22
2022-23
2023-2026
Tota!
s 78,654
78,654
78,654
78,654
76,877
)47,240
$)38 zu
Loans payable are pard for from the General Fund. Compensated absences are paid from !he
Employee Accrued Liability Fund and claims payable are paid from the Workers'
Compensation Fund and the Liabihty Fund.
10. Community facilities and Assessment Districts and Other Revenue Bond Issues
In July 1996, Special Assessment District 95-1 bonds in the amounl of $1,200,000 were
issued to finance the acquisitmn of public improvements to Sycamore Crossmg. The interest
rate on the debt is variable, ranging from 6.75% to 6.875%. The bonds ore scheduled to
mature in September 202 l.
In February 2004, Conununity Facilities District No. 91-2 issued refunding bonds in the
amount of $37,530,000 to finance the acquisition and/or constroction of public
improvements. In April 2013, bonds in the amount of$28,810,000 were issued to refund
these bonds. The interest rate on the debt is variable, ranging from 2% to 5%. The bonds
are scheduled to mature in October 2030.
68
to. Community fru:ilities and A:iscssmrnt Districl.5 and Other Revenue Bond Issues fcominwdl
In March 2015, Community facilities Distnet 06-1 issued 2015 Special Tax Refunding
Bomb in the amount of$23,920,000. Proceeds ofthe bonds were used to a) refund all of the
outstanding Conununlty facilities District No. 06-1 2010 Special Tax Bonds, which were
origma.lly issued to finance the Requisition of a park site and construction of public
improvcmeuts, b) make a deposit into the Reserve Fund established wider the Fiscal Agent
Agreement and c) pay costs of issuance. !"he interest rate on llle debt is variable, ranging
from 2% to 5%. The bonds are scheduled to mature in October 2034.
A schedule of additions and deletions 10 these bonds is !IS follows:
Be11nnm1 Endinl Ococri!'iion Bolance Add1tkwi, Dele!ion, Bot,nce
S�Crms,n8
AD 9S-I ' lU.000 s�.ooo ""� S<trano H�,gt,"
CPD. 91·2 lS.SlS.000 1,07'.000 Z4.7SO.OOO
Del Rio C.P u 06-1. 2015
Spa:iol Tu Refur,chng 2MIO.OOO J60.000 ll.050.000
'"" $49 ssc 000 l.490.000 4S.060.000
The City has no obligation or duty to pay any delinquency out of any evarlable funds of the
City. The City is only acting as an agent for the property owners m collecting the assessments
and then seeing that the debt service payments are made, and neither the faith and credit, nor
the taxing power of the City, is pledged to the payment of the bonds. Therefore, the bond
indebtedness is not shown in the City's financial statements.
11. Join\ Yentun:;:i
The City is a parncrpant in the Anaheim-Garden Grove-Orange Fire Training Facility
Authority, a joint powers authority created to finance fire tmining. These cities have one
representative each on the Authority's three-member Board of Directors. The City's share of
the Authority's costs is included in the accompanying financial statements as expenditures
of the General Fund and is immaterial to the operations of the City. Separate financial
statements may be obtained for the Fire Training Facility Authority from the City ofGanlen
Grove
In addition to the Fire Training Facility Authority, the Cities of Orange, Anaheim, Fountain
Valley, Fullerton, Garden Grove, Brea, Huntmgton Beach and Newport Beach have formed
a regional dispatch operation to provide dispatch services for those cmes.
The City cf'Orange's share of costs for these dispatch services is immaterial to the operations
of the City. The financial management and administrauon of this operation is the
responsibility of the City of Anaheim. Separate financial statements may be obtamed for the
Metro Cities Fire Authority from the City of Anaheim.
69
12. l,.oans Receivable
With the dissolution of the Redevelopment Agency effective January 31, 2012, the City
Council adopted a resolution authorizing the City to become the Successor Ilousiog Agency
and enabling the City to retain housing assets and functions of the Redevelopment Agency.
The Successor Housing Agency provides housing loans for the rehabilitation and expansion
of housing for low and moderate-income families in the City. Housing rehabilitation loans
are for the purpose of rehabilitating and upgrading existing housing due to structural
deficiencies. Housing loans also assist in the construction of new multi-family housing
projects or the rehabilitation of existing multi-family units.
Additional!y, the former Redevelopment Agency issued several promissory notes, pursuant
to and in implementation of the "Affordable Housing Resale Restrictions Option to
Designate Eligible Purchaser with A!tcma1ivc Option to Purchase and Option to Purchase
Upon Default". These ootes do not actually represent cash paid to the borrowers, but
represent the subsidy constructively received by the borrower a.s a result of borrowers'
purchase of the property at a price below its fair market value. No repayment of these notes
is due by the borrower until the Affordable Term of the loan date (45 years conuncneing
from the loan date), or upon sale of the property or default, as described in the note. At June
30, 2018, the outstanding amount for these loans was 5721,000. Due to the length of the
deferral and the uncertainty of repayment on these Joans, the outstanding balance is offset by an allowance for the full amount of the note.
In May 2013, the City entered into a Refinancing Agreement that provides for the Developer
of the Serrano Woods Affordable Housing Project to restructure the pcnnanent financing for
the Serrano Woods project while maintaining compliance with affordable housing
rcquiremems. lnis Refinancing Agreement provided for n City loan from the ln-hcu Housmg
funds in the amount ofS4,300,000. The balance of the loan at June 30, 2018, net of allowance
for net present value, is $2,838,764.
Under the HOME and CDBG programs, the City provides housing Joans to eligible City of
Orange residents and low income hou�ing projects.
Outstanding loan balances, net of allowances for net present value, for these housing I011ns
111 June 30, 2018 arc compnsed ofrhe following:
Housmg successor loans
In-lieu loan
HOME Joans
CDDG loans
Short-term
S 39,778
11,506
Long-term
18,242,918
2,838,764
3,243,204
560,25 I
To'"
18,282,696
2,838,764
3,254,710
560,25 l
Total Loans S 51 284
70
24,885,137 24,936,421
13. Advances to/from Other Funds
As part of the City's commitment io its perncrpaucn in the Orange County 800 MHz
Countywidc Coordinated Communication System (CCCS), the Cuy is required to replace a
majority of its current public safety radio ioventory. This inventory rcplaccmenc is to be
funded with Prop l 72 funds. Because there were Insufflcrcnt funds available in the Prop 172
funding FY 2016-l 7, an inter-fund loan was made from the Capital lmprovcment Fund to
the Prop 172 fund in the wnount of$2,770, 119. Repayment of the loan, and accrued interest
at the rate of the State's Local Agency Investment Fund yield, will be made from future Prop
172 revenues over a period of6 years, beginning in fiscal year 2017-18. The balance of this
advance as of June 30, 2018, including accrued interest, is $2,324,121.
14. Transfen,
Transfers between funds for the year ended June 30, 2018 are as follows:
Transfers In
O<oo,
Governmental Capial Imp. Internal
Translers Out '""'' '"" Serv. Fund Totals
General FUOO (I) ' 42,261 1,000,000 2,L00,000 J, 142,261
Capital Imp. Ftni {2) l 15 000 115,000
Totals $ 42,261 l .000 000 2 215 000 l.257,261
lnterfund transfers were used to {I) fund general funded capital projects, computer
replacements, liability claims, and vehicle replacements; and {2) fund improvements to City
facilities.
!5. Pdicit Equity Balances
The Proposmon 172 Fund ended the fiscal year in a fund balance deficit ofSl,989,867. This
deficit is a result of a commitment to replace certain public safety radio equipment with
Proposition 172 funds, which will not be available until future years. A loan from the Capital
Improvement Fund was made to the Proposition 172 Fund to provide cash to pay this
commitment. This deficit will be eliminated over the next 5 years, as sa!es tax revenues are
received and are used to pay off the Joan.
The Equipment Maintenance lntemal Service Fund had a deficit net poshlon ofSJ.8 mi!lion,
due to the implementation ofGASB 68, which requires the recording of the fund's unfunded
net pension !iabilityofS4.0 million and GASB 75, which requires the recording of the fund's
total Other Post-Employment Benefits liability of SI .3 million. The Workers' Compensation
Internal Service Fund and the Liabihty Internal Service Fund had deficit net positions of$6.9
million and 1.2 million, respectively, due the year-end recording of actuarial determined
future claims payable. ft is the City's policy not to fund these deficits. as these items do not
represent tangible expenses.
71
16. Qmungeneics
The City is involved in pending lawsuits of 11 nature common to many ssmiler Jurisdictions.
City Management estimates that these potential claims against the City, not covered by
insurance, will not have a material adverse effect on the financial position of the City.
17. Expcnd!Jures jg Excess o[Approprjation�
For the year ended June JO, 2018, expenditures exceeded appropriations in the following
departments-
General Fund
Fire(!)
Prop 172 Fund
General government())
Housing Successor fund
Economic development (2)
EMT Transportation fund
Fire (I)
Housing in Lieu Fund
Economic development (2)
Final Blldget
$29,389,9'.55
0
110,798
2,372,824
l,687
Actual
Expenditures
29,675,027
17,741
1,530,672
2,433,710
246,846
Variance
(285,072)
(17,741)
(l,419,874)
(60,886)
(245,159)
CASP Certification & Training Fund (4)
The above variances arc due to the following:
0 2,949 (2,949)
(I) Overtime incurred for Strike Team Forces assistance in fighting California wild fires
and the related backfill coverage.
(2) An accounting adjustment IO housing loans receivable to properly present the balances
at their net present value
(3) Interest expenditure related to inter-fund loan was not budgeted.
(4) Fund created mid-year and 110 budget was appropriated.
18. Restatement of Beginning fund B@lancc/Nct PosiJion
The accompanying Fund Fmancial Statements eenccr adjustments that resulted in a
restatement of certain beginning fund balances/net position. The following schedule
summanzcs the effects of the prior period adjustments to the beginning fund bnlanccs/nct
posi1ionasofluly 1,2017:
18. Restatement of Beginning fund Bahmce/Nct Po:mioa <continued)
Government-wide Financial Statements:
B<:ginnin, Net Adjustment of Prior Beginning Ne1
P1U1tion,"" Year�venue/ Po,rn,on, ..
Aetivit:z: Pn:v,ousl:z: RePQ<ted EX1!!:nd1tu� Rcsmed
Govemmenl.11 SS&l,524,503 (12,685,738) 569,BJ!,765 llusiness-T)pe 136,310,878 (6,065,866) 130�51012
Toals $718,83$,381 (18,751,604) 100.os1.1n
Fund Financial Statements:
Proprietary Funds
Degirming Nei Adjusunem of Prior Beginn,ng Ne\
Position as Year Revenue/ Position, u
Activit:z: f'rl:VKIUS!� Rel)Med Exl!!:nd"ru,e R"1Llled
Ent..rpnse Fund:
SaniLollon �.230,845 (1,819,760) 64,411,0BS
Waler 70,080,0ll (4,246,106) 65,833,927
IDt<m•I Service Fllllds 20,476J7l {1J131173) 19,263,098
Totals SlSti,787,149 (7,279,039) l49,S08,ll0
The above adjustmen!s in the Government-wide financial statements and in the Fund
Financial Statements are the result of implementation of GASB 75, which requires the
recording of the City's net OPEB liability in the Government-wide financial statements es
well as in the Proprietary Funds in the Fund Financial statements.
19. Successor Ai:cocy Tru,i for A»e!.5 of Fonner Redevelopment Agency
A. Cash and investments
Cash and investments reported in the accompanying futlll1c1al statements consisted of the
following:
Cash and investments pooled with the City
Cash and investments with fiscal agent
Total Cash
B. Loans receivable
S 7,888,!56
2,630 607
$ 10,518 763
Commercial loons were issued to private businesses to fund development projects within the
Conner Onmge Merged and Amended Redevelopment Project Area through a variety of
commercial rchabilirntion loan programs. The loans bell!' interest rates ranging from 0% to
7.5% pi:r annwn and are to be repaid m mstallments over an established time period, if not
fully or partially forgiven. The majority ofloans are repaid in monthly or yearly msteltmenrs.
73
19. Successor Agency Trust for AsKt.s of Fonner Redevdopment Agency {contin11cdl
in addition, loans were issued under the Small Business Assistance (SBA) Programs. The
programs are iotended to promote and encourage property owners and tenants to rehabilitate
commercial, retail and/or industrial properties located within the fonner Orange Merged and
Amended Redevelopment Pro;ecl Area. The SBA Programs = comprised of seven loan
programs designed to provide incentives to property owners and tenants to upgrade signagc,
enhance landscapiog, improve extenor focades, and other property improvements.
The seven SBA programs are as follows:
• Landscape Incentive - interest-free, 50150 matching loan up to $60,000, 50% of which
can be forgiven upon mcetmg certain pcrfonnance conditions.
• Signage Incentive - interest-free, 50150 matching loan up to $30,000, 50% of which can
be forgiven upon meeting cen.ain performance conditions.
• Restaurant Equipment Incentive - loans up to .$30,000 to install grease interceptors in
restaurants, 50% of which can be forgiven upon meeting certain performance conulucns.
• Property Improvement - interest-free loan up to .$250,000 to upgrade building focades,
parking, lighting, and related improvements. Upon timely repayment of the first 75% of
the loan balance, the remaining 25% is forgiven.
• Old Towne Retail - a 3% interest loan up to .$100,000 to bring older buildings into
conformance with the current Uniform Build mg Code, 50% of which can be forgiven
upon meeting certain performance conditions.
• Hotel Rehabilitation Loan - loan to assist in the retention, anraction and expansion of
hospit.nhty uses seekiog to upgrade existing and/or construct new facilities in the Project
Area.
A swnmary of the outstanding balances, net of ellowances for forgiveoess and net present
value, at June 30, 20181s as follows:
Commercial loans
SBA loans
To"1
C. Due from Other Ageocies
s 196,500
180,781
S 377,281
In April 2008, the former Redevelopment Agency Board entered into a Promissory Note with
the City of Orange to finance II portion of the cost of construction of the Grijalva Park al
Santiago Creek Gymnasium/Sports Center in the 11J11ount of $4,250,000 Effective lllnuary
31, 2012, with the dis.solution of Redevelopment Agency, this Promissory Note is oow
between the Successor Agency and the City. The balance outstanding at June 30, 2018 is
$3,008,599, plus accrued interest of$225,469.
'"
19. Successor Agency Tool for Assets of former Rcdcvetoomcnt Agcncv fcontinued)
D. Long-Term Debt
A dcs.:riplton of long-term debt outstanding {excluding dcfea.scd debt) of the Successor
Agency llS of June 30, 2018, follows· - - ....... ='• n.,. Wilhin �- �- Alld""°' n.1 •• ·- �- "",_ "",_
� ... - r .. o11oc ..... bond:J J !!,14!,000 l,lJ!JlO(I 51 "90,000 JjJ!.000 •1.m.000
IJrwnonlKd - Pttml""' l !67,JIS �lH l,4l0.29'l -= l,iTJ1469
Jax Allocation Bonds
J!lllllll •101.m Sl.9102111 u11.ru 49 m wi
On May I, 2008, to provide funds for redevelopment purposes, the Agency sold $33,450,000
of Orange Merged nnd Amended Redevelopment Project Area 2008 Tax Allocation Bonds,
Series A, matunng September I, 2037. The issue is comprised of serial bonds and lcnn
bonds. The serial bonds are payable in annual mslallmcnts ofS555,000 to $1,620,000 and
mature in the years prior to 2030. The term bonds are payable in annual installments of
Sl, 700,000 to $2,355,000 and mature in they= 2031 to 2037. Interest rates on the bonds
range from 4.00% to 4.75%. Funds are maintained in a cash reserves account sufficient to
cover the maximum annual debL service. The bonds outstanding at June 30, 2018 were
$26,205,000.
To provide funds to refund the Tustin Street Rcdevelopmcn! Project 1997 Taxable Tax
Allocation Parity Rands, Series B, the Agency sold Orange Merged and Amended
Redevelopment Project Area 2008 Taxable Tax Allocation Refunding Bonds, Series B, on
May I, 2008, in the amoum of $6,180,000 maturing September t, 2027. The initial bonds
were issued for redevelopment purposes. The current issue is comprised of serial bonds and
term bonds The serial bonds are payable in annual installments ofS85,000 to $395,000 and
mature in the years prior to 2020. The term bonds arc payable in annual installments of
$410,000 to $635,000 and mature in the years 2021 to 2027. Interest rates on the refunding
bonds range from S.00% to 6.20"�. Funds are maintained in a cash reserves account
sufficient 10 cover the maximwn annual debt service. The bonds outstanding at Juuc 30,
2018 were $4,870,000.
In December 2014, to provide funds to a) advance refund the outstanding Tustin Street
Redevelopment Project 1997 Tax Allocation Parity Bonds, Series A, issued by the Fonner
Agency in the original principal amount of$3,280,000 and the outstanding Orange Merged
and Amended Redevelopment Project Area 2003 Tax Allocation Refunding Bonds, Series
A issued by the former Agency in the cngmal principal amount of$45,915,000, b) acquire a
debt service reserve fund surety bond for the debt service reserve account under the
lndentun:, and c) provide for the cost of issuing the 2014 bonds, the Successor Agency issued
75
19. Succes50r Agency Trost for Assets of Fonner Redevelopment As;ncv (continued)
Orange Merged and Amended Redevelopment Project Area 2014 Tox Allocation Refunding
Bonds, Series A in the amount of $2&,850.000. The 2014 bonds are payable in annual
installments of$2, 745,000 to $3,845,000 and mature 2023. Interest rates on the bonds range
from 3 00% lo S.Oo/o. In lieu of cash funding the Reserve Account, The Successor Agency
purchased the Reserve Fund Insurance Policy to satisfy the "Reserve Requirement" as
defined in the Indenture The bonds outstanding at June 30, 2018 were $20,415,000.
Annual requirements tu amortize all tax allocation bonds, notes payable, leases payable, and
certificates of participation outstendmg as of June 30, 2018 are as follows: ,_
End!na
June JO
2019
2020 ,ro,
"'' aoaa
2024-2028
2029-2033
2034-2038
Toial
Princip•I
$ J,935,000
4,IJS,000
4.JS0,000
4,565,000
4.795.000
10,460,000
s.,1,,000
10,n,,000
SS! 490000
ln1e=1
2,399,050
2,202,lll
1,995,231
1,n1,211
1.S4ii,S09
S,474,48S 1.s«.m
1,317,703
20lS7 Ill
IM Allwation 8pnd<
E. Restatement of Beginning Net Position
The accompanying Fund Fm11nc111I Statement reflect adjustments that resulted in a
reststcmcnt of beginning net position. This restatement is a result of implementation of
GASD 75, which requires the recording of the Agern::y's net OPEB liability. The following
schedule sununanzes the e!Tects of this prior period adjustment 10 the beginning net position
asofJulyl,2017:
Activity
Succcnor Agency Tm.JI Fund•
F. Insurance
Ekginning Nel
Pos,1ion ..
Previously Rcporled
$(44,163,74.SJ
AdJumncm of Prior
Year Revcnua I
E•pend1tvra
(JOJ,293)
lk&!Mlng Nei
Posldon, as
Resl8ted
(44,667,031)
The Successor Agency of the fonner RDA is covered by insurance policies of the City of
Orange as of June 30, 2018.
20. Suhseguent Events
lo preparing these financial statements, the City has evaluated events and transactions for
potential recognition or disclosure through December IO, 2018, the date 11H: financial
statements were available to be issued.
76
20. Subggu�nt Events (continm;d)
In July 2018, to provide funds to a) advance refund the outstllnding Orange Merged and
Amended Redevelopment Project Area 2008 Tax Allocation Bonds, Series A, issued by the
Fonner Agency in the original principal amount of $33,450,000, b) acquire a debt service
reserve fund st1rety bond for the debt service reserve account under the Indenture, and c)
provide for the cost of issuing the 2018 bonds, the Successor Agency issued Orange Merged
and Amended Redevelopment Project Area 2018 Tax Allocation Refunding Bonds, Series
A in the amount of $20,375.000. The 2018 bonds arc payable in annual installments of
$750,000 to $2,265,000 and matw:c 2036. Interest rates on the bonds range from 4.00% to
5.00%,.
No otller events or transactions were identified that required recognition or disclosure.
77
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78
Required Supplementary Intormation
General Fund
General Fund - This fund has been classified as a major fund and ls used to account for
revenues and expenditures that are not required to be accounted for in another fund.
Special Revenue Fund
Proposition 172 - This fund is used to account for sales tax restricted by voter mandate for
public safety service enhancements.
federol, State and Local Grams - This fund is used to account for grant programs such as
Community Development Block Grant, Housing and Urban Development Grant, Cahfomia
Park!ands Grant, Citizens Option for Pubhc Safety (COPS) Grant, Traffic Safety Grant,
Justice Assistance Grant and others
Housing Succe�'!OI- This fund rs used to account for low and moderate housing activities as
of February I, 2012, when the City became the successor housing agency to the former
Redevelopment Agency, upon its dissolution. Prior to that, these activities were accounted
for in the Redevelopment Agency Housing fund.
Measure M - This fw;d is used to account for receipts and expenditures relatmg to
uansportation improvement projects and programs, funded by local � cent sales tax.
79
CITY OF ORANGE
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2018
2018 VR1fance with
Fin1I Budg,::t
BudgcLed A,nouMs I\Js1tiv,,
Original Final AcCu1I (Negative)
REVENUES:
Taxe• • 88,128,083 88.128,083 88.183,290 SS,W7
Franchi$<> fees 2.542,619 2.542.619 2,541,850 (769)
Licenses 100 pennits 4.611,900 4,679,970 4,807,460 127,490
Use of money ind plUJ'l'rlY 1,533,586 !,537,243 1.148.474 (388,769)
I ntergov,,mmen lll I l.558,510 !,894,873 !,905,719 10,846
Charge,i for services lltld fus 7.050.360 7,050,360 7,374,837 324,477
Fines Md forfem,re, 1.820,000 1.820,000 l.852,674 32,674
Other revenues 731,691 l.974,077 3293,171 1,319,094
Total revenues 107,976749 109,627,225 lll,!07,475 1.480.250
l,;XJ't..NDITURES:
General gosenl!nent
Ci Ly counc,I 9,196 9,196 7,075 2.121
City man1g,::r 6,232.155 7,342,771 5,154,325 2.188,446
City attorney l,030,823 l,171.986 882,084 289,902
Cny clerk 592,908 592,908 568,679 24,229
Finance 3.115,294 3,123,987 2,904.487 219,500
Human resources 1.465,441 1.465,441 1,381,054 84,387
i'ublic safety
Police 43,786,784 44,037,668 42,757,995 1,279,673
''" 27,549,382 29,389,955 29,675,027 (285,072)
Publoc works 8,297,146 8,367,221 7.397.919 969,302
Community development 4,411,399 4,881,88[ 4,488.092 393,789
Parks and hbnory:
Library 4,873.432 5,043,226 4,742.117 301,109
Community services 9,123.312 9,527.194 8,749,962 777,232
Economic development 186,287 186,287 173.191 13,096
Capital outlay 41 582 165,950 123,612 42,338
Total upend11ures 110,715 !41 115,305,671 109,005,619 6,300,052
Excess (deficiency) of revenues
over (under) expenditures \2,738,392! \S,678,446) 2, 101,856 7,780,302
O'J'HEM. FINANCING SOUM.CE:S
(USi,;S):
Transfers (oui) (2,QOCJ,000) (3.142,26[) (3,142.261)
Ne:t change in fund ha.lance• (�.638,392) (8,820, 707) (1,040,405) 7.780,302
Fond balances, beginning of )ICM 35,898 961 35 898 961 35,898,96]
Fund bala1tees, end of y,:u ' 30,260.569 27.078 254 34,858.556 7.780,302
80
CITY OF ORANGE
Budgetary Comparison Schedule
Proposition 172
Year ended June 30, 2018
2018 Vanance with
Final Budget
Bud,&!:ted Amounts Positive
OnS!nal Pinal Actual �Ncpuvc) REVENUF.S:
Tll)(CS s 917,000 917,000 986,154 69,154
Use of money and propcny 20 514 20J14 7,962 {12,552)
Total revenues 937,514 937,514 994 116 56 602
EXPENDITURES:
Current:
General government 17,741 (17,741)
Public safety:
Pohce l41,038 351,738 350,468 l,270
F,ro 53,165 53,165 scsm 3,088
Capital outlay 903046 1,099,553 890,212 2()1),341
Total expenditures 1.297.249 1.504,456 1.308 498 195 958
Net change in fund balances (359,735) {566,942) (314,382) 252,560
Furld balances. beginning of year {1,675,485) (1.675,485) (1,675,485}
Fund balances, end of year $ p.035,220! (2,242,427! (1.989,8672 252.560
81
CITY OF ORANGE
Budgetary Comparison Schedule
Federal, State and Local Grants
Year ended June 30, 2018
2018 Variance with
Final Budget
Budgeted Amounts Posmve
On,&inal Final Actual (Negative}
REVENUES:
Use of money and properry $ 24,361 24,361 23,888 (473)
Intergo vern mental J.899.102 1,899,!02 1,431,696 (467,406)
Charges for services 30,000 30,000 31,950 l.950
Total revenues 1.953 463 l,953,463 1487,534 (465,929}
EXPENl>ITUkES:
Current:
Public safety:
Police 161,680 147.847 146,249 1,598
Economic development 137,619 421,953 403.609 18,344
Public works 20,787 20,787 20,787
Capital ou1lay 1,511.482 l ,SJJ 092 I 007 579 805513
Tota! expenditures 1,831,568 2,403,679 l,578,224 825,455
Net change in fund balances 121.895 (450,216) (90,690) 359.526
Fund balances, begmning of year 5 910,739 5,9!0,739 5,9!0,739
Fund balances, end of year s 6,032,634 5,460,523 5,&20,049 359,526
CITY OF ORANGE
Budgetary Comparison Schedule
Housing Successor
Year ended June 30, 2018
2018 Variance with
Final Budge!
Budi;eted Amou11is Positive
Original Final Actual (Negative) REVENUF.S:
U.e of money and properly ' 109.087 109.087 112,987 3,900
Other revenues 194,000 194,000
Total revenues 109,087 109,087 306,987 197 900
EXI'ENDITURF.S:
Current:
General government:
City manager 14,483 14,483 14,483
Finance 26,341 26.341 26,341
Community development 54,381 54,381 54,381
Economic development !05,798 110 798 J 530 672 (l.419,874)
Total expenditures 201,003 206,003 l,625,877 (1.419,874)
Net change in fund balances (91.916) (96.9!6) (l,3!8,890) (1,221,974)
Fund b.1.lnnces, beginning of year 21.627,542 21,627,542 21,627542
Fund balances, end of year $ 21.535,626 21.530.626 20,308 652 (I 122 l.974l
83
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84
CITY OF ORANGE
Budgetary Comparison Schedule
Measure M
Year ended June 30, 2018
2018 Variance: wilh
Anal Budge1
Budgeted Amounts Posjtlvc
Original Final Actual (Negative)
REVENUES:
Taxes s 2,803.548 2.803.548 2,779,864 (23,684)
Use of money and property 80,393 80,393 54,962 (25,431)
lntersovemmental 110,000 110,000 127,3[0 17,310
Charges for service� and Iees 750 750 165 (SSS)
Total revenues 2,994,691 2,994,69! 2,962,301 (32.390)
EXPENDITURES:
Current:
Public works 412,615 412,615 339,605 73,010
Parks and library I l0,000 345,5 11 143,193 202,318
C�pnal ou1lay 3,520,000 7.877,992 4 702 026 3175966
Total expenditures 4,042,615 8,636,l 18 5,184,824 3,451,294
Net change in fund balances (1,047,924) (5.641,427) (2.222,523) 3,418,904
Fund bdlances, beginning of year 5 738.973 S 738 973 5,738,973
Fund bdlances. end of year s 4 691 049 97 546 3,516,450 3,418,904
85
CITY or ORANGE
MiM:ollorueons Pion
Schedule of Ch11111cs in !he Not Pciuion Liohiltty 111d Rolo!ed R11io•
A, of June 30, Fot the La.st Ten FiJoal Yunt (1)
Fiscal year ended 2018 2017 2016
Meuun:mcmt period 2017 2016 ""
TOTAL PENSION LIABJLJTY
Scrv,ce Cost ' S,177,802 4,672,901 4,546,279
lmere,n 23,418,521 2},111,2&1 2'2,231,986
D!ftettnce Between expened and Actual Expmence (S,&16,561) (131,466) (1.ISS,811)
Changes in Asswnpt,ons I 8,98'i,6ll (S,2S4,S06)
Benefit Payments, Including Refunds of employee Contributiorui (16,066,66Sl (IS,554,542! (14,720,766)
Net Change in Tomi Peon,;ion Liability 25,642,719 12,104,11400 (415,838)
TOW Pension L,ab,lity - Beginnin3 119,863,12& 301758,954 308,174 791
Total Pen11on Li4biliiy - Ending{•) $345,SOS.8�7 3 19 86) 128 307 nB 9:'.!J
PUN fJOUCIARY NET l'OSlTION
Contribuhon • Employer ' 7,498,423 6,420,191 5,766,795
Contnbution • llmploya, 2,142,096 2,036,528 2,104,640
Net !n\lfltmen! Income 25,473,940 1,162,922 4,982,661
lleneflt Payments, Jncludlng Refunds of Employee Contributions (16,066,665) (IS,554,542) (14,720,766)
Pion 10 Plan Resc:ouce Movemon! 12,777
AdminiJtralive Expense !)34,2151 {141,636) {4,435}
Ne! Change in ficlo>eiory Net Position 18,746,356 (6,076,531) (l,&?l,103)
Pl1111 fidPClll)' Net PosHion • lle�nnin� 226,366,382 232,442,913 234,314,016
Pion fido>eiary Ne1 Po,ihon • Ending (b) $24, 112,738 226,166,382 232 442 913
Plan Ne! Pension Liobihly/(AsselS) • Ending(•) · (b) $100,39}, 109 93 496 740 n,3161040
Pl1n f,due,ory Ne! P01mon"' • Percentace ofth1 To11l l'ension
Liabiliiy 70 9-4% 70.77% 7S 53%
Covcred-Employu Payroll ' 26,740,825 25,760,260 25,364,199
Pion Net Pen,ion Liob,hiy/(A,.,!) es I Percentai:e of Covered-
Employee Payroll }75,43% 362.95% 29694%
(I) H'5torical mfonnahon is n:quired only for measurement for whicti GASO 68 i, applicable. Fiscal Veat 2015 WM !he first
year of implomcmtatiun, !horofon: only four years ""' shown.
Notes to Schedule
Benefi! Chanj: .. ; The fli:u.res above do not Include any llabllll)' ,mpact !hat mey h•ve reoulted from pion ohonge, wh,ch
occurred afttr the Juoo 30, 20 14 �,lu1hon d,le. n,,. •ppli .. for voluntary t>oneflt change, as well as any offers of Two
Yean Additional Service Cred11 (Llr. L Golden Hanw.h.akc:o),
Changes of Allumpti<>n1 The d,scount rote....,. changed from 7.6S% (nel ohdmin •• mnive upcm,:)10 7,)5%
86
2015
2015
4.9l r.es
21.813,800
(ll,B90,B09)
l2,B34,447
295,340,344
JOS,174,791
4,836,725
2,042,395
35,349,001
(13,890,809)
28,337,312
205,976 704
234,l 14,0 16
73 860 775
76.03%
26,155,370
212 39%
87
CITY OF ORANGE
Miscet!a,,eous Plan
Sch�ulc of Pla,, ContribITTions
As of June JO, For the Wt Ten Hscal Years (1)
Fi3cal year ende<l 2018 2017 1016
Actt.U1nally Determined C,,ntribu1ion ' 7,865,000 7,496,119 6,420,229
Contribuuon in Relation to the Actuarially Dc1ermined
Contribution (7,865,000) (7,496,129) (6,420,229) Contribution Deficiency (Exccu) I
Covered-Employee Payroll ' 26J62,2)6 26,740.S:?5 25,760,260
Contribution, BS a percentage of Covered-Employee Payroll 29 834% 28033% 24.923%
Note 10 Schedule:
Valualion Date.
Fiscal Year Applicable To:
June 30, 2015
June 30. 2018
JuneJ0.20l4
June30,2017
JuneJ0,2013
JuncJ0,2016
Method• and assumptions u5ed lo detennine contnbution rates:
Actuarial cost method Entry age normal•
Amortization method Level percemege of payroll, closed'
A,sscts valw,t1on me1hod
Inflation
Salary Inc=
lnve,trnent ,,uc of n:lum
Retirement age
Mortality
Market Value"
2.7S%•
3.0%compounded annually
7 .15% net of pension investment and administrative
expenses, including inflation •
Hin: date prior to January 1, 2013: 50-67 Hin: date 011
or alter January l, 2013: 52-67
Mortalily a.ssumptioo1 m, based on moltlllity rates
miult,ng from the most recent Cal PERS Experience
Study adopted by the CalPERS Boord, first used m the
June 30, 2009 valwulon. For purposes of the posl-
n:1in:.nem mortahty ratlOI, !hose n:vi5ed n,!es include 20
years of proJe<:tro on-going monnlny improvement using
Scale OB published by the Soc let)' of Ac1U11r1cs.•••
'Thox octuori,I methi,d, and uoum�ions 1n: awhcablc fut 111 valuation yean shown.
''Morke, v1l11e wa,i u...:I a,i the osseu volu111lon mwiod for all val!IOlion dates beginninH with 06/1 lll4 A IS yew Smoothed
Market Method WU u,ed to 01luo uoeti for 6130112 ind 0613011 l valu,toon d,1.,. .
•• 'Thi, usumprion ,..,.. used for monality rate< for all valuatlOJt dale< beilnnlna 06/30/14. Post-mortolliy nitc, including
S years ofprojec!e<l on-going mortality lmpnrn:mem using Scale AA published by the Sociely of Actuaries were
used for 6130112 and 06/30/13 valw,1ion dales.
( I) Historical lnfo,mation is required only fot mea.wrcment for which OASB 68 il applicable, Fi�al Year 201 S WM
the first year of implemet>tation, therefore only 1hn:e year, an: 51,own,
88
2015
S,766,795
(S,766,795)
25,364,199
22736%
JuneJ0,2012
Jun�J0,201S
89
CITY OF ORANGE
Sofe1.y Plan
!khodu!c ofClw,gq in lho Nol Pon,ion Uoboliiy Md Rol•ted llMios
A• ofJ..,. 30, For th< Last Ten fiscal Years (I)
Fisc.l year tooed 2018 2017 2016
Measurtmtnl ptriod 2017 2016 201-'
TOTAL PENSION UABIUTY
Service Cost ' 8,663,04-4 7,677,162 7,SI0,097
lme,res1 34,973_1)(9 34,040,818 12,660,257
OWlges ofBtnefits Terms
Diflfftr« Bttween expected ond A<:rual Exptr<ence {4,S67.'Hl) ()25,371) (6,4 ll,S47)
Ow,ges in Asiumpdoru 29,6&9,123 (l,155,227)
llenefit Pa)=nis, lndudlng Refunds of emplo)tt Coo1r,butlO<li (2l,809,456i j2215451119) �1,218,801)
Ne1. Change In Total Pension Uab,liiy 44,948,549 11,847,483 4,313,779 00
Toi.I Pension Uabit,ty • Beginning 471,584,152 452,737,369 448,353,590
TWJ Pension Uabl!lty • Ending {a) S 516,533,401 (71,S&4,852 452,737.369
Pl.AN l'IDUCIAR y NET sosmo»
Con!ribunon - Employ!: ' 12,.104,411 10,451,474 9,399,0(1
Con1rib111ion - Empl")'!'! 2,7!5,504 2,715,401 2,736,4]6
lnvemncrn lncoma 36.448,512 l,469,91! 6,9,il,219
Plan I<> Plan Resource Movemtn! I ,l ll
Benefit P1}ffl<nts, lnclud,ng Refunds ofllmployee Contributions (23,809,456) {22,545,119) (21,211,101)
Administnli"" E>lpen<e (479J6l)
Noi C,,ange in F1ducwy Net Posmon 27,250,791 (7 ,908.263) (2,140,105)
Plan Fiduc:tary Net Position· Beginning ]24 675.256 332,583�19 134,nl,624
Plan Fiduciary Net Pnulion - F.nding {b) S 151.926.(147 324,675,256 J32,Sl3,Sl9
Plan Ne! Ptnsion Ulb,li!)l'(Asms) - Ending (a) - (b) S 164,607,354 146,909,596 120,IS3,R50
Plan Fiduciary Ne! Position "" a Pen:en�e of the Total Pcn,ion
Uablliiy 68.13% 6185% 7346%
Co\lffed·Emplo� Payroll 29,703,713 2&,780,&IO 28,144,568
Plan Ne! Pension Llabilil)"(A-) .. • Pon:en11ge ofCovere,d.
Employee Pavoll 554.16% Sl0,44% 426.92%
{l) H!llllrical infnmwion ii n:quiml only Kl< moaswcmon! lur which GASB 61 t1 "f'plicablc. ��13COI Year 20 IS wos the
fim year oflmpltmematlon, ihefefore only four yoars Ofe shown.
Noo .. !o Sc:hedulo:
Bcncfit Ow,gcs. TI,e figW'CS above do not ,ncludo any liob,lity,mpKl!hol moyh1vt, resuhed from plan changes which
oocurred after the June 30, 2014 valuatinn dole. Thii opp lies lur vcluntary b<:ntfil chi&nge,, .. ...,11 .. anycffa,, of Two
Years AddfflOIIII Service Cred� (1 k.1. Goldefl Handshakes).
90
20tS
2014
S.277.331
31,691,919
(20,0717826)
19,897.426
4214S6,l64
40,133,390
a,394,155
2,571,215
so.�a.s09
{20,071,&26)
41,442,073
291,211,SSl
134, 721,624
l ll.629,966
29,790,65]
381 43%
91
CITY OF ORANGE
Safe!)' Plan
Schedule of Plan Contributions
As of June 30. for the 1..-lSI 1 en Fiscal Years { l)
Fiscal yttr ended 2018 2017 2016
Valualion d11e 2015 2014 2013
Actuarially Dc!etmined Con!ribu!ion ' 12,903,531 12,302,440 10,451,464
Contribution in Relation to the Actuarially Determined
Contribuhon !12,903.SJli i 12.302,440) !J0,451,4641
Conmbution Deficiency (Exe=) ' Covered-Employee Payroll ' 30,328,006 29,703,783 28,780,810
Comribu1ions Ill � Pen;cn1acc of Co�rcd-funployee Payroll 42 547% 41.417% 36.314%
Note to Schedule:
Methods and assumption.s used to determine conmbution flilU:s:
Actuarial cos! method Enlry age normal•
Amonization method Le�l pc:=ntage of payroll, closed•
Asset1 v;,luation method
Inflation
Salary Increases
Jnvestmem rate of return
Re1iremenl ag,:
Mor1ality
Market Value ••
2 75""'
3.0% compounded annually'
7. I 5% net of pc:nsion investment and administratl�
exp,:n,es, including inflation•
Hire date prior to January 1, 2013: SO-SS Hire dale
on or after January 1, 2013· 50-57
Monaliiy ll55omptions are based on mortal!ty rares
resulting from the mosr recent Cal PERS Experience
Study adop1td by the C..IPERS Board, Ii rat used ,n
the June 30, 2009 \llllualion. For purpose,, of the post·
retirement mortality rue,, th0$C: revised rates include
20 year.t of proJe<:ted on-1om1 monaliiy
impro�ment u,on& Scale IIU published by the
Socie1y of Actuaries.•••
'The$<! actuarl1I meihod1 l!ld mumptlons are •ppllcable for •U val..a11oo year, shown.
"Markfl \llllue wa,; used as the am:t> \IIIIWllion method for 111 voluotion dotes beginning willi 06/13/14. A 15 ya, Smoothed
Marl<et Method wu o,cd to w.lue a.u<ls for 61:10/12 ond 06/3011] wluatoon dole!.
"'Th" mumpnon wu used for moru.lity rato< for 111 valuailoo dates beglnnln& 06130114. P<»Hnonality rates lncludina 5 ycius
ofprojecied or,-goin& morutlity impro�ment 11Sing Scale AA published by the Society of Actuam::s were used for
6130/12 and 06/30/l J valwttion dates.
(I) H,s1ork.ll lnfonn•doo ls •"'lulred ooly for meuuremen1 for which GASB 68 11 oppl,cable Fioc�I Yew 2015 wu doe r.r11
year of implcmenllltion, therefore, only four years ere shown.
"
201S
2012
9,]99,0-41
28,144,568
)).)96%
93
CITY OF ORANGE
Schedule of Changes in the Tmal OPEB Liability and Related Ratios
As of June 30, For the Lost Ten Fiscal Years. (1)
Fiscal y,:�r ended
M=urement period
TOTAL PENSION LIAl31LITY
Service Cost
Interest
Benefit hymen!s, lntludmg Refunds of employee Contributions
Net Change m Total OP8B Liability
Total OPEB Liability· Beginning
Total OPEB Liability· Ending
2018
2017
S l,322,0:24
l,087,864
[l,148,907)
l,260,981
)0,329,328
S 31,590,309
(I) Historical information is re<juircd only for mcuun:mcn1 for which GASB 75 is applicable. Fi.JCal
Y= 2018 wes the fim �ar of implementa11on. therefore only one year ,s shown.
'"
CITY OF ORANGE
Notes to Required Supplementary Information
Yeer ended June 30. 2018
I. Budgetary Acooumine
Annual budgets are adopted by July I of each year on a basis consistent with generally
accepted accounting principles for all governmental funds. The budget is monitored 111
ensure compliance with legal provisions embodied in the appropriated budget as
approved or amended by the City Council throughout the year. Department heads are
responsible for monitoring their depanment's appropriated budget.
Legal level of Control - The legal level of budgetary control rs at the department level
within each fund. Transfers of appropriations between fund,, between dcpanmcms
within a fund. and between capital outlay or debt service and another object group
classulcanon within a depanment, require City Council approval. All ocher transfers
of appropnations can be made with City management approval.
The City Council approved Increases in appropriations during the year in the amount
of $4.590,530 in the General Fund, $14,721,563 in Lhe Special Revenue Funds and
$35,761.237 m the Capital Projects Funds Unencumbered appropriauons of the
governmental funds automahcally lapse at the end of the fiscal year. Ongoing,
unfulfilled encumbrances and their appropnacions automaucaJJy carry over and will be
honored during the subsequent ye.u-.
95
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%
Supplementary Schedule&
CITY OF ORANGE
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2018
Special Capital
Revenue ProJects
Funds Funds Totals
ASSETS:
Cash and investments S 15.858.222 4.540.831 20.399,053
Receivables (net of allowance for
esumated unconccubicsj-
Accounts 136.238 136,238
Taxc.� 304,987 304,987
Interest 56,025 16,474 72,499
Loans receivable (net or allowance for net
present value) 2.838 764 2,838,764
Total assets 19 194 236 4,557.305 23,751,541
LIABILITIES AND FUND BALANCES:
Liabilities·
Accounts payable 553,724 147,831 701,555
Deposits pay�blc 3.090 3,090
Contracts payable SD 471 50,471
Total liabilities 607.285 147 831 755.116
FUND BALANCES:
Restricted.
Special revenue projects l !,188,783 I !,188.783
Commmed 7,398,168 7,398,168
Assigned:
Capita! projects 4 409,474 4,409.474
Total fund balances 18�86,951 4,409,474 22,996.425
Total liabiliHcs and fund balances S 19.194.236 4,557 305 23.751541
97
CITY OF ORANGE
Combining Statement of Revenues, Expenditures and Changes in Fund Balanc Non-Major Governmental Funds
Year ended June 30, 2018
REVENUIS:
Taxes
Franchise fees
License and pemues
U5e of money and pmpeny
!mcrgovemmcmal
Charges for services and fees
Other revenues
Total revenues
Special
Revenue
Funds
S 1,025,703
289,528
39,221
163,373
4.275,305
2,523,330
330,298
8.646,758
Capital
l'mject�
Funds
10,126
352.129
362,2SS
Totals
1.025,703
289,528
39,221
173.4�
4,275,305
2,875,459
330,298
9009.013
EXPENDITURES:
Current:
General govemmcnt
Public safety
Public works
Community development
Parks and library
Economic development
Capital outlay
Total e�penditurcs
Excess (deficiency) of revenues
over (under) cxpendimres
OTIIER FlNANClNG SOURCES
(USES):
Transfen. in
Total cmer financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balance.<;, end of year
241.462 241.462
2.725.038 2.725,038
2,593,637 2,593,637
2,949 2,949
934,459 934,459
246,846 246,846
2668 709 568,493 3,237,202
9,413,100 568,493 9,981,593
(766,342) (206,238) (972,580)
42,261 42.261
42,261 42,261
(724,081) (206,238) (930,319)
1931!032 46!5,712 23 926,744
S 18,586,951 4,409,474 22,996,425
98
Noo-Major Special Revenue Funds
The following Special Revenue Funds have been classified ns non-major fwtds m the
accompanying financial statements and budgetary companson schedules:
Transooootion System Improvement Program (ISIP) - This fund is used to account for the
collection of fees assessed to developers and expenditures made 10 improve the City's
uansportation system.
EMT Transport - This fund is used to account for the receipts and expenditures related to
ambulance transportation.
Gas Tax-This fund is used tu account for receipts and expenditures of money apponioned
under Streets and Highway Code Sections 2105, 2106 and 2107 of the State ofCalifomia.
Air Pollution Reduction - This fund is used to account for revenues and expenditures related
lo air polluuon reduction programs pursuant to the California Clean Air Act of 1988.
Asset Seirore This fund is used to account for assets seized as a result of drug enforcement
efforts.
0-C-P,L Building Maintenance - This fund is used to account for lease payments and
maintenance on the Hcadstart/Preschool building.
Landscape Maintemmce Assessmeo\ Districts - This fund is used to account for the
collection of assessments from property owners and tbc associated city expenditures for the
maintenance of!andscaped areas wilhm the distncts.
l'Y, PEG Program - This fund is used to account for Pubhc Education and Govenunent
(PEG) access foca paid to the Cny by cable providers. These revenues are restncted by Stale
regulations for the exclusive use of the City's Government Access and Local Access
programmmg.
Housing in Lieu - This fund is used to account for the collection of developer affordable
holl!oing in-lieu fees and other transactions related 10 the creation of new affordable housing
units
Certified Access SoPdalist Program CCASp} Certification & Training This fund is used 10
account for collection and expenditures of fees restricted, by Senate Bill 262 (Chapter 872,
2003), for costs of traming and certifying inspectors lllld educating the public pursuant 10
Government Code Section 4467.
Road Maintenance Rcb11bilita!ion Account CRMRA\ 1ltia fund is used to account for the
collection and expenditure of gas tax funds allocated and restricted under Street and
Highway Code Seel ion 2031, through the RMRA, for maintenance and construction of city
streets and roads.
99
CITY OF ORANGE
Combining Balance Sheet
Non-Major Special Revenue Funds
Junc30,20J8
Transportation
Syalcm A"
lmpro�ment EMT Pollution A=<
Pro�m Trans(!';!rt Ga.1 T,� Ri:dm:tion Seizure
ASSETS:
Cash and lnvesunenis ' 6,007,698 1,304,n6 2.686,512 103,240 3,343.940
Rcet:ivablc:s (ncl of Blluwance fur
estimated uncollectiblesJ:
ACC<lUlllS 20,939 46.382
Tu�
Interest 21.'HS 4,218 8.796 '" I l.219 lo••• =ewablc {r>et of allowanc� for r>el
present value)
Total assets 6,029,616 1,308,944 2,716,247 149.879 3.355.159
LIABILITIES AND FUND BALANCE:s:
Liab, litoc,1:
Accounts p:iyable 12,72.'i 28,393 288,547 1,081 ll,544
Depu,ils pay,blc ),090
Com.111c:11 payable l,4SS "" Totol liab,lmu 14.180 28,393 293,201 l,081 13,544
FUND BALANCES:
Rc:slricti:d
Special revenue proJeclS 2,423,046 148,798 3.341,6LS
Comm,ucd 6.0IS.436 l.280,55]
Total fond balances 6,015,436 1,280,SS! 2,423,046 148.798 J,341,615
Total llabllifies and filnd balances ' 6,029,616 1,308,944 2,716,247 149,879 3,355.159
100
Limdsc;pe
O.C PT, M�inlcn•ncc CASP RMRA Road Total
lluilding Assessment 1%Pl::G Housing C�nmcaiion Ro�d Special Revenue
Momtcnom:c Districu. Program ,n Llcu & Traimng M,intcnancc funds
101.927 l.060.619 430,072 241,045 77,016 S0].427 (5,858,222
68,917 136.238
6.389 298,598 304.987
"' 4,032 3.226 858 110 1.032 56.025
2,838,764 2.838.764
102,286 1,071,040 502,215 3.000,667 77,126 80L057 19.194236
'"
"'
72,474
72.474
136,855
47,452
184,307
553,724 aoso
50.471
607,285
998,!566 317,908 3,0!I0,667 77,126 801.057 11.188.783
102.181 7.398,168
102,18[ 998,566 317,908 3,000,667 77,126 801.057 18.586 951
102,286 1,071,040 S02,215 3,000,667 77,126 801.057 l9.J94,2J6
IOI
CITY OF ORANGE
Combining Slalem,mt of Revenu�. fup,:nditun:s and Changes in Fund Balance!>
Non·Major Special Revenue Fund!>
June 30, 2018
Tntnsporca1ion
System A" Improvement EMT Pollution
""""" Transl!!:!n Gas Tax Reductmn
REVENU&S:
Taxes $
Fraru:h,se fees
Ltcense and pcnmts
u.., of money 11nd prop,:rty 20,)96 009) 62,637 1,05 I
Intergovernmental 243,792 2,984,994 221,013
Charges for services and fees 2!0,239 2,312,875 216
Other revenues "' 17,0lll
Total revenues 230.720 2,SSS.958 3,064,938 222 064
EXPEI>.'DITURF.S:
Current:
General government IOS,305
Public tafety 2,433,710 6,234
Public works 14,876 2.578.13)
Comm11nity devclopmem
Parks and hbrary
Economic development
Capital outlay 688,293 595.999 160,077
Tocal e�pcnditures 703,169 2,433,710 3.174,1)2 271616
Exe<::$5 (deficiency) of revenues
over (under) upendituru (472,449) 122,248 (109,194} (49,SS2)
OTHER FINANCING SOURCES
(USF.SJ:
'rrensrcrs m
Net change in fund balances (472,449) 122,248 (109,194) (49,SS2)
Fund balances. begmning of year 6,487,885 1,158,303 2,532,240 198.350
Fund bala=. end of year s 6.0JS.436 112so15s I 2,423,046 148,798
102
Lal\dscape
0.C.PT. Maim. CASP RMRA Rrn1d Total
Asset Build mg A.1SCSsmcn1 1%PEG Hou,ing Ccrtificat,on Rood Special Revenue
Seizure Mainl. Dislncl.'l Program 111 Lieu & Training Mamtenance Funds
!,025,703 1,025,703
289,528 289,528
39.221 39,221
43,519 13,522 1,853 11.385 19,847 (1,407) (8.721) 163.373
825,506 4,275,305
2,523,330
313 122 330,298
356,641 13,522 1,027,556 300,913 19.847 37.814 816,785 8,646.758
136,157 241,462
285,094 2,725,038
"" 2,593,637
2,?49 2.949
934,459 934,459
246.846 246,846
306,734 2,250 lJ0,032 769,5% 15,728 2,668,70'.l
591,828 2,878 l,064,491 905,753 246,846 2.949 15,728 9.4!3,100
(235,187) 10644 1)6,935) (604,840) (226,999) 34,865 801 057 \766,342)
(235,187) 10,644
3,576 802 9! 537
3,341.615 !02,181
(36.935)
1035.501
998.566
(604.840) (226,999)
922.748 3 307 666
317,908 3,080,667
103
42.261
n.126
n.126
80!.057
801.057
42.261
(724.081)
19,311,032
18,5861951
CITY OF ORANGE
Budgetary Comparison Schedule
Transportation System Improvement Program
June 30, 2018
2018 Variance with
Final Budget
Budgeted Amounts Pruitive
Orisinal Final Actual {Nei;;alive)
REVEJl.'UF.S:
Use of money and property ' 91.026 91,026 20,396 (70,630)
Charges for services and fees J,043,651 !,043,651 210,239 (833,412)
Other revenues 85
To!�l revenues 1,134,677 1,134,677 230,720 \903,957)
EXPENDITURES:
Current:
Public works 14,876 14,876 14,876
Capital outlay l,285,000 7,042,095 688,293 6.3�3.802
Tomi cxpendl1ures l.299 876 7056971 703.169 6,353,802
Net change in fund balances (165.199) (5,922,294) (472,449) 5,449,845
Fund l»llances, begmnmg of year 6.487.885 6.487.885 6,487 885
Fund balances, end of year s 613221686 565 591 6 015 436 5 4491145
104
CITY OF ORANGE
Budgetary Comparison Schedule
EMT Transport
June30,2018
2018 Vnnance with
Fin�! Budget
Bud1,cted Amounts Positive
Orig!nlll Finni Acrual (Ntigstive)
RF.:VENUES:
Use of money and property • 11,775 11,775 (709) (12,4S4)
!ntergovemmcnrnl 65,000 65,000 243.792 178,792
Charges for services and fees 2 226 912 2 226 912 2,312.875 85,963
Total revenues 2.303.687 2.303.687 2.555,958 252.271
EXPENDITURES:
Current
Public safety: "" 2,331714 2,372,824 2,433,710 (60.886)
Net change in fund balance.<: (28,027) (69,137} 122.248 191,385
Fund balances, beginning of year l,158,303 J,158,303 1,158,303
Fund balances. end of year • I, 130 276 J,089,166 1,280,551 191,385
105
CITY OF ORANGE
Budgetary Comparison Schedule
Gas Tax
June 30, 2018
2018 Varia11ce wirh
Fin�I Budge!
Bud,&eled Amounts Positive
Original Final Actual !Ne&ative)
REVENUES:
Use of money and property s 138,318 138,318 62,637 (75,681)
lnicrgovernmenial 3,938.633 3.123,633 2.984,994 (138,639)
Charges for sen ices and fees 216 216
Other revenues 3,lllll\ 3 000 17,091 14 091
Total revenues 4079951 3,264,951 3,064,938 (200,013)
EXPENl}JTURES:
Current
Puhlic works 2,633,596 2,634,461 2,578,133 56,328
Capital outlay 2 220000 2 708,641 595,999 2,112,642
Tocal eipenduurcs 4,853,596 5,343. 102 3 174 132 2 168 970
Net change m fund balances (773,645) (2,078,151) (109,194) 1,968,957
Fund balances, beginning of year 2.532 240 2 532.240 2,532,240
Fund balance�. end of year s I 758 595 454.089 2,423,046 1,968,957
106
CITY OF ORANGE
Budgetary Companson Schedule
Air Pollution Reduction
Year ended June 30, 2018
2018 Vanance wilh
Pinal Budget
Budgeted Amounts Positive
Originlll Fina! Actual (Negative)
REVENUES:
Use of money and property ' 1.628 1,628 1.051 {577)
Intergovernmental 180 300 180,300 221 013 40,713
Total revenues 181,928 181,928 222 064 40 136
EXPENDITURES:
Current:
Genentl government
HumanRemun:es 108,13!1 108,13!1 105,305 2,830
Public s�foty:
Police 14,000 14,000 6,234 7,766
Capical outlay 69.300 16(,367 160077 I 290
Total expenditures 19!,43.'i 283,,02 271.616 ll,886
Ne1 changes In fund balances (9,!107) (101,574) (49,!152) !12,022
Funtl balances, beginning of year !98 350 198 350 198 3!10
Fund bal�n<:es, end of year ' 188.843 96 776 148,798 !12,022
107
CITY OF ORANGE
Budgetary Comparison Schedule
Asset Seizure
Year ended June 30, 2018
2018 Variance with
Final Budget
Budgeted Amounts Posiuve
Ori&inal Final Actual {Nesative}
REVENUES:
Use of money and propeny • 39,334 39,334 43,519 4,185
Other revenues 104000 104000 313 122 209 122
Total revenues 143,334 143.334 356 641 213,307
EXPENDITURES:
Current
Public safety:
Police 261.7'.!4 341,326 285,094 56,232
Capital outlay 295.020 433 152 306,734 126,418
Total e�pend1tures 556,774 774.478 591,828 182,650
Nei change m fund balances (413,440) (63!,!44) (235,187) 395,957
Fund balances, beginning of year 3.576.802 3 576 802 3 576.802
Fund balances. end of year • 3,163,362 2,945.658 3,341.615 395 957
108
CITY OF ORANGE
Budgetary Comparison Schedule
O.C.P.T. Building Maintenance
Year ended June 30, 2018
2018 Variance with
Final Budget
Budgeted Amounts Pmitivc
Ori&inal Fmal Actual <Nc&ativc}
REVENUES:
Use of money and property • 14.145 ]4.]45 13.522 (623)
EXPENDITURES:
Current;
?ubhc wol"Xs 9,619 9,619 628 8,991
Capital outlay 46,010 2 250 43 760
Total expenditures 9 619 55629 2 878 52,751
Ne1 change in fund balances 4,526 (41,484) I0,644 52,128
Fund balances. beginning of year 91 537 9! 537 91 537
Fund balances. end of year • 96063 50053 102,181 52,128
109
CITY OF ORANGE
Budgetary Companson Schedule
Landscape Maintenance Assessment Districts
Year ended June 30, 2018
2018 Variance with
Final Budget
Budi;tited Amounts Positive
Original Final Acrual (Negative)
REVENUES:
Taxes • l ,042,824 l ,042,824 l,025,703 (17,121)
Use of money and property 9.130 9,130 t,853 (7,277)
Total revenues l.051.954 I 051.954 1,027,556 (24,398)
EXPENDITURES:
Current
Parks and library.
Community services 972,942 974,197 934.459 39,738
Capital outlay 377 520 130 032 247 488
Total expenditures 972,942 I 351 717 J 06449] 287,226
Nci change in fund balances 79,012 (299,763) (36,935) 262,828
Fund balances, t>eginning of year 1,035 501 I 035 501 I 035,50!
Fund balances, end of year s 1114,513 735 738 998,566 262 828
110
CITY OF ORANGE
Budgetary Comparison Schedule
I % PEG Program
Year ended June 30, 2018
2018 Variance with
Fins! Budget
Bud1eted Amocnts Positive
Original Final Actual (Ncgaiive)
REVENUES:
Fr.mchisc fees ' 277,850 277,850 289,528 11.678
Use of money and properly l l .265 11.265 11.385 120
Total revenues 289,l 15 289,115 300,913 11.798
EXPENDITURES:
Current
General government
City manager 162.004 202,004 136, 157 M,847
Capital outlay 9&4,226 769,596 214,630
Total expenditures 162,004 1,186,230 905,753 280.477
Excess (deficiency) of revenues
over {under) expendnures 127.l 1 l (897,115) (604,840) 292.275
Fund balances, beginning of year 922,748 922.748 922.748
Fund balances, end of year s l ,049,859 2j,633 317,908 292,275
111
CITY OF ORANGE
Budgetary Comparison Schedule
Housing in Lieu
Year ended June 30, 2018
2018 Variance with
Final Budget
Budgeted Amounts Pcndve
OnglnaJ Final Actual (Negative)
REVENUES:
Use of money and property ' 2 904 2904 19,847 16,943
Tomi revenues 2,904 2 904 19,847 16,943
EXPENDITURES:
Current:
Economic development l.687 1.687 246,846 (245,159)
Tora! espcndnures 1,687 1.687 246,846 (245,159}
Net change in fund balances 1.217 1.217 (226.999) (228.216)
Fund balances, begmnmg of year 3,307 666 3,307,666 3,307,666
Fund balances, end of year s 3,308,883 3,308,883 3,080,667 (228,216j
l 12
CITY OF ORANGE
Budgetary Comparison Schedule
CASP Certification & Training
Year ended June 30, 2018
2018 VariAnce with
Final Dudget
Bud_aeted Amounrs Positive
Original Final Actual (Negative}
REVENUES:
License and permil!i ' 39,221 39,221
Use of money and propeny !1,407) jl,407)
Total revenues 37 814 37 814
EXPENDITURES:
Cum:nt·
Communiiy developmem 2,949 (2,949)
Total expenditures 2.949 (2.949)
Excess (deficiency) of revenues
over (under) expenditures 34,865 34.865
OTHER FINANCING SOURCF.S
(USES):
Transfers in 42,261 42,261
Tota! other financing sources (uses) 42,261 42,261
Net ch.ange in fund balances 42,261 77,126 34,86.'I
Fund balances, begmnmg of year
Fund balances, end of year ' 42.261 77 126 34,865
113
CITY OF ORANGE
Budgetary Companson Schedule
RMRA Road Maintenance Rchabiliauon
Year ended June 30, 2018
2018 Variance wi1h
Final Budget
Butlgelecl Amounts Posuive
Original Final ActuDI (Negative�
REVENUES,
Intergovernmental s 815,000 825,506 I0,506
Use of money and property (8.721) (8,721)
Total revenues 815.000 816,785 I 785
EXPENDITURES:
Capital outlay 815,000 15,728 799,272
Total expenditures 1115,000 15,728 799,272
Net change ,n fund balances 801,057 801.057
Funtl batances, beginning of year
Funtl balances, entl of year s s 801 057 801,057
114
Major and Non-Major Capital Projects Funds
The following Capital Projects Funds have been classified as major funds m the
accompanying Budgetary Comparison Schedule:
Capjla) lmproV('IJICOI - This fund is used to accoun1 for genera.I purpose capital
improvement and ccopereuvely funded projects
Park Acguisitiqn, [xvelopment nnd Mnintennnce - This fund is used to account for the
acquisition, development and maintemmce of parks that are financed by developer fees.
The following Capital Projects Funds have been classified es non-major funds in the
accompanying financial statements and Budgclary Comparison Scheduks
Fn:; faciht1e� fees - This fund is used to acecunt for fees collected from the developers to
improve the fire protection within specified areas.
Police facilities fees - This fund is used to eccount for fees collected from developers to
construct or improve police facilities.
Library Facilities Fees - This fund is used to account for fees collected from developers to
construct or improve library facilities.
Drainage District - This fund is used to account for the construction of major storm drains
identified in the master plan for storm drains.
115
CITY OF ORANGE
Combining Balance Sheet
Non-Major Capua! Project Funds
June 30, 2018
Fi� Police Library
Facilities Facilities Facilities Drainage
F,� Fees Fees District
ASSETS:
Cash 1111d investments ' 3,443,687 474,815 618,434 3,895
Interest receivable 12,410 1.678 2.372 14
Total a.=ts 3,456,097 476,493 620,806 3,909
LIADILITIF.S AND FUND BALANCF.S:
Liabilities:
Accounts payable 71,926 15,905
Total liabilities 71.926 15,905
FUND BALANCES:
Assigned:
Capital projects 3,384,171 476,493 544,901 3,909
Total fund balances 3.384.171 476,493 �44,901 3,909
Total liabilities and fund balance s 3,456,097 476,493 620,806 3,90')
116
Total
Capital Projects
Funds
4,540,831
16,474
4,557,305
147,831
147,831
4,4()1),474
4,4()1),474
4,557,305
117
CITY OF ORANGE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Capital Project Funds
June 30, 2018
Fire Police Library
Facilities fadli1ie.1: Fac1hue.1; Drainage ,�, '= - District
REVENUES:
U� of money and pmpcny s 6,961 (525) 3,683 7
Charges for services and fees 227.302 91.197 33,630
Other revenues
Total revenues 234,263 90.672 37,313 7
EXPENDITURF.S,
Capital outlay 317 469 251.024
Toia! expenditures 317,469 251.024
Net change in fund halanCCJ. (83,206) 90.672 (213.711) 7
Fund balance,,. beginning of year 3,467.377 385,82] 758.612 3.902
Fund hala1>Cci, end of year $ 3,384.171 476,493 544,901 3.909
118
Total
Capital Project
Funds
10, 126
352,129
362,255
568.493
568,493
(20fi,U8)
4,615,712
4,409,474
119
CITY OF ORANGE
Budgetary Comparison Schedule
Capital Improvement
June 30, 20!8
2018 Variance wnh
Final R11dse1
Budseted Amounts Pos,iivc
ons,nai """ Accual {Ne�tive!
REVt.NU!sS:
Use or rnoncy and proi11:11y s 192,390 192,390 108,323 (84,067)
lnlergosemmcnla! 3,68(,600 3,736,182 1,276,706 (2,459,476)
Charges for __.ices and f= 3,000 3,000 7,080 4,080
Otl>u n:ven11es ,.ooo 953,662 949,662
Total revenues 3 876990 3935 572 2345,771 11,589,801)
EXPENDITURF..S:
Current:
General Government.
City manager 300,000 300.000 291,231 8,769
Communuy services 13,559 13,603 '·"" 7,597
Capital outlay 6,416,600 31,262,575 8,355,867 22,906,708
Total expenditures 6730,159 31,576 178 8,653,104 22,923,074
Excess (deficiency) of revenues
over (under) expenditures (2,853, 169) (27 ,640,f,06) {6,307,333! 21.333,273
OTHER FINANCING SOURCES
(USES):
Tnmsfcrs in 1,000,000 1,000,000 1.000.000
Transfers out (115.000) (115,000) u 15,000)
Toul other financing sources (uses) 885,000 885,000 885,000
Net ch311ge in fund balances (1,%8,169) [26,755,606) (5,422,333) 21,333,273
Fund balances, beginning of year 25,751,0IO 25,751,010 25,?Sl,010
Fund balances. end of year S 23782841 iuxl415962 20,328677 21,333,273
120
CITY OF ORANGE
Budgetary Comparison Schedule
Park Acquisition, Development and Mamlenance
June 30, 2018
2018 Variance with
Final Bud):tlt
Budi;eted Amounts Positive
Original Final Acmal (Nei;auvci
REVENUES:
Use of money and propeny $ 188,334 188,334 123,224 (65,1 lO)
Charges for scrvtces and foes 8,003.476 8,003,476 413,518 (7.589.958)
Other revenue 12,018 12,018
Total revenues. 8,191.810 8,191,8!0 548.760 {7,643,050)
EXPENDITURES:
Capital outlay 570.000 9417692 5 280 484 4,137 208
To1al e�pcnduurcs 570,000 9.417.692 5,280.484 4,137,208
Net change m fund balances 7,621.810 (l,225.882) (4.731,724) (3,505,842)
Fund balances, beginning of year 9,217,574 9,217,574 9,217,574
Fund balances., end of year s 16,839,384 7,991.692 4,485,850 p,505,842!
121
CITY OF ORANGE
Budgetary Comparison Schedule
Fire Facilities Fees
June 30, 2018
2018 Variance wnh
Final Budget
Budgeted Amounts f>osihvc
Original Final Actual (Ne.1,ativc)
REVENUES:
Use of money and propcny s 48,080 48,080 6,961 (41,119)
Charges for services and fees 766,842 766,842 227,302 (539.540)
Total revenues 814.922 814.922 234,263 (580,659)
EXPENDITURES:
Capital outlay 813.688 2,514 619 317.469 2,197.150
Total upcnditures 8!3.688 2 514.619 317 469 2.197 150
Exce.1..� (deficiency) of revenues
over (under) ei.penditures l.234 (1,699.697) (83.206) !.616.491
Net change in fund balances 1,234 (1.699,697) (83,206) l,616,491
Fund balances, beginning of year 3 467 377 3 467,377 3 467.377
Fund balances, end of year s 3468611 I 767,680 3.384.171 1,616,491
!'.!'.!
CITY OF ORANGE
Budgetary Comparison Schedule
Police Facilities Fees
June 30, 2018
2018 Variance with
Final Budget
Budgeted Amounts Positive
Orijpnal Final Acmal (Negative)
REVENUES:
Use of money and property s 4.824 4,824 (525) (5.349)
Charges for service� end rees 442 742 442,742 91,197 psl,545)
Tomi revenues 447,566 447,566 90,672 (356,894)
EXPENDITURES:
Current:
Public Hfety:
Police 6,680 6,680 6,680
Capital outlay 100,000 100.000 100.00J
Total cxpcnd,iures 106,680 106,680 106.680
Excess (deficiency) of revenues
over (under) expenditures 340,886 340,886 90,672 (250,214)
Ne1 change in fund balances 340,886 340,886 90,672 (250,214)
Fund balances, beginning of year 385,821 385,821 385,821
Fund balances, end of year s 726,707 726,707 476,493 p50.214J
1'.!3
CITY OF ORANGE
Budgetary Comparison Schedule
Library Facilities Fees
June 30, 2018
2018 Vana»cc with
Final Budget
Bud_getM Amounts PO�IIIVe
Origjnal Final Actual (Negative}
REVENUES:
Use of money and property ' 10,830 10,830 3,683 (7,147)
Ch11rgcs for services and fees 542,175 542 175 33 630 (508,545!
Total revenues .t53,005 5!13,00!i 37,313 (515,692)
EXPENDITURES:
Capital outlay 430,700 797.295 251.024 !146,271
Total cxpcnd11Ures 430,700 797,295 251,024 546,271
Net change in fund balances 122,30:i (244,290) (213,71 l) 30,579
Fund balances, beginning of year 758 612 758,612 758 612
Fund balances, end of year s 880,917 514,322 544,901 30,579
l'.!4
REVENUES:
Use of money and property
Net clla11gc in fund balance.�
Fund balances, begmning of year
Fund balances, end of year
CITY OF ORANGE
Budgetary Comparison Schedule
Drainage District
June 30, 2018
2018 Variance with
Final Budget
Budgcicd Amounts Positive
Ongmal Fmal Actual (Negative)
s " " 7 (44)
" " 7 (44)
3,902 3 902 3 902
' 3 953 3 953 3 909 (44)
1'.!5
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126
Tntcrnnl Service Funds
Internal Service Funds are used to account for the financing of special activities and services
provided by one depanment of a government to another. The following Internal Service
Funds are included in lhe accomp.mying financial statements:
Eqµjpruent Maintenance - This fwid is used to account for lhe operating costs of the City's
rolling stock.
Eguipmenf RePhlCCment - This fund is used 10 account for lhe replacement costs of the
City's rolling stock.
Major Building Im11rovs;ments - This fund is used to account for replacement costs of the
City's building unprovemems.
Workers' Compensation - This fund is used to account for workers' compensation claims,
premiums and administrative costs, and to maintain a sinking fund for future claims
Liability - This fund is used to account for liability claims, premiums and adminisuative
costs.
Dental This fund is used 10 maintain a sinking fund for future claims.
Ernolovce Accrued Liability This fund is used to account for the City's vacation, sick ond
compensation time payouts for all City depanments,
lnfonnation Systems- 'lltis fund is used to account for the development, administration and
mamtcnance of the City's infonnation management services.
�l!U!UIC[ Replacement - This fund is used to account for the replacement costs of the
City's computers.
127
CITY OF ORANGE
Combining Statement of Nee Position
l..ntcrnal Service Funds
June 30, 2018
Major
Equipment Equipment Building Workers'
Maintenance Re2lacement lm2rovements Com[!nsa11on
ASSETS:
Curren! assets:
Cash and mvesrrnents s 321,618 7.254,571 409.563 7,739,938
Accounts receivable !,092
Inventories 350,111
Prepaid items
Noncurrent assets:
Ca::.h and investments with Ilscal agent 90,423
Capital assets, net 165,195 9,947,300
Total assets 838,016 17,201,871 409.563 7,830,36!
DEFERRED OUTFLOWS OF RF.SOURCES:
Deferred OPEB 48,315
Deferred pension related items 833,009 •
Total deferred outflows of resources 881.324
LIABILITIES:
Current liabilities:
Accounts payable 164,892 23,950 21.673 285,318
Accrued expenses 3,887
Claims payable 3.832,336
Long-tenn liabilities:
Claims payable 10,616,914
Net OPED liability 1.263,612
Net pension liability 4,015,725
Total liabilites 5,444,229 23,950 21,673 14,738,455
DEFERRED INFLOWS OF RF.SOURCES:
Deferred pension related items 123,606
Total deferred mflows of resources 123,606
NET POSITION:
Investment in capital assets 165,195 9.947,300
Unrestricted (4,0!31690) 7,230,621 387,890 (6,908,094)
Total net position $ p.848.495j 17,177,921 387.890 !6,908.094j
128
Self-Insurance Funds Employee
Accrued Information Computer
Liahility Dental Linhility Systems Replacement Totals
717,283 363,026 7,020.871 210,616 1,701,746 25,739,232
l,092
350,111
41,500 41,500
90,423
10,112,495
717,283 404,526 7,020,87 I 210,616 1.701,746 36,334,853
48,315
833,009
881 324
115,059 61.308 76,973 57,281 806,454
3,887
987,235 4,819,571
l,613,849 12,230,763
1.263,612
4,015,725
2,716,143 6!,308 76,973 57,281 23,140,012
123,606
123.606
10,112,495
(1,998,860) 343,218 7,020,871 133,643 J ,644,465 3,840,064
(l.998,860j 343,218 7,020,871 133,643 1,644,465 13,952,559
129
CITY OF ORANGE
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
Year ended June 30, 2018
Major
Equipment Equipment Building Workers'
Maintenance Reelacement Improvements CompcBsauon
OPERA TING REVENUES:
Charges for servrces and feev $ J ,355,861 369,291 3,441,896
Other revenues 6,482 44,046 68.017
Total operatmg revenues 1,362.343 413,337 3,50'J,91J
OPERATING EXPENSES:
Salaries and wages 1.363,115 1,376 290,642
Mamtenanee and operauons 1,443,Bl 39,904 70,681 199,687
Contractual services 60,537 27,742
Depreciation 23,760 1,485,773
Insurance claims and charges 4,332,683
Total operating expenses 2,890,943 l,525,677 72,057 4,850,754
Operating income (Joss) (1,528,600) 0.112,340) (72,057) ( 1,340,84 J)
NONOPF..RATING REVENUE.lio
(EXPENSE.lio):
Gain (loss) on retirement of assets (l l,637)
Income (loss) before transfers (1.528,600) (1,123,977) (72,057) (1,340.841)
Transfers m 800,000 115,000
Change in net position (1.528,600) (323.977) 42.943 (1.340,841)
Net pcsuion. begming of year, restated (2,319,895) 17,501,898 344,947 {5,567,253J
Net position, end of year S p,848,495l 17,177921 387 890 (6,908,0'J4)
130
Self-Insurance Funds Employee
Accrued Information Computer
Liability Dental Li11bility Sys1ems Replacemcm TocaJs
870,506 404,272 1,526,244 2,141,821 74,998 10, 184,889
!.517 120.062
872.023 404 272 1,526,244 2.141,821 74,998 l0,304 951
40'.'i,463 1.403,9!0 94,245 267,898 3,826,649
129,892 9,880 47,271 54,562 l,157,937 3,153,345
97,216 54,127 2,318,023 2,557,645
1,509,533
2.099,988 324,679 14,331 6,771,681
2,732,559 388,686 I ,46'.'i,512 2,466,830 1.425,835 17,818,853
{1,860.536) 15,586 60,732 (325,009) ( l ,350,837) (7,513,902�
{ll,637)
(!,860,536) 15,586 60,732 (325,009) (l,350,837) (7,525,'.'i39)
600,000 200,000 ,00000 2,215,000
(l,260,536) 15,586 260.732 {325,009) (850.837} (5,310,539)
(738,324) 327,632 6,760,139 458,652 2,495,302 19,263,098
p .998,860) 343,218 7,020,871 133,643 1,644,465 13.952,559
Ill
CITY OF ORANGE
Combining Statement of Cash Flows
Intern.ii Service Fund�
Year ended June 30, 2018
Maj•
Equipmeol Equ,pmenl Building Work •• ,.'
Ma,nlenance Reelacern,ont lmp,o,emenc, Com(!osatlon
Cull nows from oper:mn.11111Ccivlues:
Cnh rccci,ed from U$Cr deputmenl< • U16,.'i2J 413,331 3,509.913
Casll p,ymenu 10 supphers for aoods and services (1.328,8!1()) (l,452,819) (46,745) (3,049,875)
Co.sh pa)menl< 10 enoployees for scn,,c:es (1,051.075) (3,639) (290,642)
Ca.,!, rece,>ed (paid) for ocher acuvi11es \IOl,572) \39.904) \161.0&4)
Net cull pfO\'oded by (used for) operaung acuviuts !1145.012) !1,079,386) !50,3S4) 8 312
Ncl cWI now. rro,n noncapii.ol lin&ncing activuie.:
Tnin,fers ,n (oul) from other fund, eoacco ll500J
Nn cash pl'O\'lde<l by naot:apital nMOClnJ ac1M1ies ""' 000 115000
UlSh now, from copii.ol and rdoled linoncing:
Acquisinon and consrruc1ion of c,piial ,..., .. (1,565,273)
Procttds from sale of copnal assets 29,495
Nel cWI ..sed for C1pital •l\d ,dated financing ,oc�vilies {IJ35,77S)
NeJ increase (decrease) ,n ca,h and cull equ,valenll (1.145,012) (1.815,164) 64.616 8,312
Cash and cash oqulvalen111 at be.llinnlna of yor 1,466,630 9.069.135 344.947 7.822,049
Casll ond ca:ih equ,-alents at end of y,:or • 321,618 7,254,571 409 Xi3 7,830.361
Cnh flaw< from apcni!ing ac:li,it><:S:
OptraUnJl income {loss) S ! 1.,28.600) p.112.340) !72,057) (1,340,841)
Adjusunents to reconcile opc:ratlng lncame/(lo .. ) to nel cash
proYxled by (uS<d for) openuing acli •• tiES'
Del)ffCi3tiOfl 23,760 1,48,.773
Changes in ar.stll •l\d liobihti<:.:
(lncn,10<) dtc"""'" ,n inventory (24.730)
([nc,euc) decrea>c ,n occounts rcce,voblc (l ,091)
Increase (<lecraS<) ,n accounts p•y•ble 71,SIS (1,452,819) 21.673 ]4,637
Increase (dee"""'") ,n net pen11on hab,hty 2n.ss4
lncn:nc (dccn:a$C) ,n OPEB hob,lity 50,439
lncn,ase (dtc..,;ise) ,n de�l\'ed mtlows 1,,380
lncrca>c (dccn: ... ) ,n deferred outfiows (87,.'i39)
!ncN:ase (decruS<) ,n claims payable I 334�16
Total adjus1rnen1< 383.SU 32,9S4 21.673 l.349,lSJ
Net cWI prov;ded by ("""1 far) opc,,�1in5 activi1ic• s p114s1012i (l1079,386l (50,3&4) 8,312
132
Sclf.[nsorancc Fond,; Employee =""" lnform:llion 0:,ml)\IICf
Liobihty Dcn11sl Li1btli1y Sy,com• Rcploccmcnt T0!1l•
872,023 404.272 l .!i26,244 2,141.822 74,998 10.279,130
(1,173,127) (348,845} (21.817) (2,273,750) (1,359,691) (11.655,SSSJ
(405,463) (l.403,910) (94,245) (3,248,974)
(99,422} (9,880) (47,271) (54,562) (17,063) {530,758)
(1.405,989) 4S.S47 53,246 (280.735) (1.301,756) (5.156,157)
soc.on '"'"" seaeco 2215000
eoc.ceo aacoc ""'·"" 2,215,000
(l.565,273)
29.495
!l.535,778)
(805,989) 4S,S47 253,246 (280,735) {BOl,756) (4,476,935)
l.!iB,272 317.479 6,767,625 491.351 2.!i03,S02 30,306,590
717 283 363 026 7 020,871 210616 I 701 746 25,829,655
{1,860.S36) 15,586 607U {325,009) (1,350,837) (7,513,902)
1.509.533
{24,730)
(l,091)
96,!;89 29,961 (7.486) 44,274 49,081 (l.132.!iJS)
275,&S,4
S0.439
75,380
(87.!i39)
357 958 l 692 474
454.!i47 29,961 17,486) 44,274 49081 2,357 745
jl.40S,!Jll9! 4S.!i47 53246 12so.ns1 !LJOJ,756! jS.156,lSJj
133
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134
Agency Funds
Agency Funds arc used to account for money and propeny held by the City es trustee or
custoduw The following Agency Funds are included in the accompanying financial
statements
Special Assessment Dismcl� - This fund is used to account for the collection of assessments
from property owners and for the remiUancc of such assessments to the bondholders as
required by the 1915 Improvement Act in California state statutes.
County Sanitation Districts - This fund is used to account for !he distribution or saniu11ion
fees collected in these districts.
Cash Bond I)e129sit fund- This fund is used 10 account for deposits placed with the City by
developers and other individuals for future services. When the cost of the service has been
determined. the deposit is reduced and the funds are recognized as revenue in the General
Fund. Any excess fimds ma dcposu account are returned to the developer.
flexible Benefit§ Plan fund- lbis fund is used to account for eligible employees' deposits
and rcimburscmcnts for health care.
135
CITY OF ORANGE
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
Year ended June 30. 2018
Bal ance Balance
July l, Ju11e 30,
2017 Addition5 Deductions 2018
Soo:ial Assrs:iment Di>trfrts;
ASS.ETS:
Cash and investments s 3,082,786 J,727,588 3.481.415 3,328,959
C&Sh and investments wuh fiscal agent 3,217,866 3.553,264 3.666,581 3,104,549
Interest receivable 8,054 41,621 38,335 ll,340
Tues1 receivable 31.392 39,184 31,392 39,184
Total assets 6 340.098 7 361 657 7,217,723 6,484,032
LlABILITIES:
Due to bondholders • 6,340098 3,920,456 3.776,522 6.484,032
Coun1y Sanitation Dls;trlct�:
ASSETS:
Cash and mvenments • 58,673 622,971 681.733 (89)
LIABll,ITIF..S,
Accounts payable s 58,673 1.304,704 I ,363,466 (89)
Cash Bond Drposlt Fund:
ASSETS:
Cash and invenmenu s !,480650 l.512,751 874,826 2.118,575
LIABILITIES:
Accounts payable • 2,045 $ 575,960 577,455 sse
Deposits payable 1.478 605 !.512 426 873,006 2,ll 8,025
Total habilllies 1,480,650 2 088 386 I 450 461 2,118575
(Continued)
136
CITY OF ORANGE
Combining Statement of Changes in Assets 11.nd Liabili!lcs
All Agency Funds
Year ended June 30, 2018
Balance Balance
July I, June 30,
2017 Additions Deductions 2018
Fledllle Benents Phm Fund:
ASSETS:
Cash and mvestmcsus • 142.481 J 15,907 26,574
Cash and investments wnh fiscal agent 27,145 211566 238711
LIABILITIES;
Deposits payable • 27 145 341,350 341,921 26,574
Ea� t �r!!lf: oo t b ill Trn eseena I !!!n
Cnrrldnr Fund:
ASSETS:
Cash and investments $ 37,183 115,038 148,!84 4 037
LIABILITIES
Accounts payable ' 37,183 267.259 300.405 4.037
Total· All Agencv Funds:
ASSETS;
Cash and mvesrmcrus s 4,659.292 ' 6.120.829 s 5,302.065 $ 5,478,056
Interest receivable 8,054 41,621 38,335 l ! ,340
Tues receivable 31,392 39.184 31.392 39.184
Restricted assets-
Cash and invesunems
with fiscal agent 3 245 01 l 3.764 830 3,905,292 3,104.549
Total assets 7,943.749 9.966,464 9.277.084 8,6)3, 129
LIABILITlfS:
Accounts payable 97,901 2,147,923 2,241,326 4.498
Deposits payable 1.505.750 1,853.776 1.214.927 2, 144.599
Due lo bcndhcldera 6340098 3,920456 3,776,522 6.484,032
Total liabilities s 7,943,749 7,922,155 7,232.775 8.633.129
137
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138
StatiaticaL Section
CITY OF ORANGE
Statistical Section
This part of the City's comprehensive annual financial report presents detaJled information 11.S 11
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents
Financial Trends
fhese schedules contain trend information to help the reader understand how
tire City'sjlnanclo/ performance and well-being hove chnnged over time.
Page
140
Revenue Capacity 150
The)e schedules ,on/am information to help the reader assess the City's most
sigmflconl revenue source, property tux.
Debt Capacity 156
These scheduleJ presenl mformalion to help the reader assess the
a!Jardablluy of the City's current levels of outstanding debt and its ability to
is.me fldditionfll debt in thefature.
Demographic and Economic Information 165
These schedules offer demographic and economic indicalors to help the
reader understa11d the enviro11men1 wlth/11 which the City ·s financial
acnvmes rake place.
Operating Information !67
These sclredules contain service and infras1ruc1Ure data to help lht reader
1mderstund how the informalu:m in the City's jlnan,1al repori relates to the
sen,/ces It provides and the oclfvi11es ii performs.
SourtH: unless otherwise 001cd, !he mformaiion In 1hcse sche<l"I"' ii dC<iv,ed from Lhc compn,hc,u1v,:, mnu•I
financial reporu for the n,levanr year.
139
CITY OF ORANGE
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accountmg)
Fiscal Year
2018 2017 2016(11 2015
Govcrnmcn!al ecnvurcs:
Net Investment in capital assets S 658,706,056 643,259.170 632.246,033 691,177,418
Restncted for:
Ocbt service
Specific projects and programs 40,833,934 43, 175,076 50,288,584 .'.16,69.'.'i,286
Unrestricted (149,196,115) (103,909,743) \104,017,007) 1115.036,341)
Total governmental act.net position s 550,343,875 582,.'.124,.'.103 578,517.6[0 632,836.363
Busmen-type acuvltles:
Net investment in capital a=ts s 132,924,641 134.136,742.0 137.600,598.0 66.354.962
Unresuic1ed p.721,768) 2.174,136.0 2,606,432.0 3,876,072
Total business-type ect. net postnon s 129,202,873 136,310.878 140.207.030 70.231,034
Primary government·
Ne! investment in capital assets S 791,630,697 777,395.912 769.846,63[ 757.532,380
ReiilnCted for:
Debt service
Specific projects and programs 40.833.934 43,175,076 50,288,584 56.695,286
Unn:suicted (152,917,883) (101,735,607) (101,410,57.'.'i) !l l l,160,269)
Total pnmary 80V'I net position s 679,546,748 718,835,381 718,724.640 703,067.397
(I) In 2016 the Sanitation Fund was n:dassed from a Governmental activity to a Business-type activity
140
F,scal Year
'°" ,013 ,012 2011 2010 2009
690,214.24] 680,071,465 680,653,854 682,215,948 672.552,834 663.940,503
8,456
58.195,215 72.390,829 7 J .255,345 84,776,077 82,627,732 73,476,789
69,801,995 48,255,167 45,184,110 49,110,307 45,593,983 61.222,826
818,211,451 800,717,461 797,093,309 816,102,332 800,774,549 798,648,574
62,656,018 60,319,081 60,790,056 60,735,472 62,561.262 61,530.606
18,512,931 15,701,571 12,022,350 8,252,394 8.949,534 11.305,558
81,168,949 76.020,652 72,812,406 68.987,866 71.510.796 72.836.164
752,870,259 740,390,546 741,443,910 742.951.420 735,J 14.096 725,471,109
8,456
58,195,215 72,390,829 71,255,345 84,776,077 82.627,732 73,476,789
88,314,926 63,956,738 57,206,460 57,362,701 54,543,517 72,528,384
899,380,400 876,738, l I 3 869,905,71.'5 885,090,198 872,285,345 871,484.738
141
CITY OF ORANGE
Changes in Net Position - Governmental Activities
Las, Ten Fiscal Years
(accrual basis of accounting)
fiscal Vear
2fll8 "" 2fll6"' ,,.,....
General govcmmer,I • 12.469,912 12,901.210 11.,23,233
Public safety 91,221,801 14,7!!3,[84 6H,091.lS4
Public wort.1 18,449,201 21.114,647 15,343,87'.I
Community clcvelopmcnl !!,419,Sll 4,7D,861 3.651.913
Parts and library !8,243,140 !S,632,111 12,867,558
Econom,c development 2,667,779 2,371,172 2,615,7ll.'i
Hcollh anJ sani1a1ion
lnltn:sl on long-term Jehl
T01al governmental activliles expenses 148,471,653 131,586,245 114,093,522
Progrllm n:venklCi:
Charge< for scrvica:
Publi� safcty 7,412,945 7,115,563 7.227.522
Communily dcvcl<J(lmcnl 2,250,l3S 2,416.758 2,825.885
S,n11,11<,m
Other act1viriC1 7,127,691 7,310,803 10,687,277
Operating i:rants and cornnbutions 4j62,3M 4,161.061 4,397,657
Cepilal i:runs and contnb\loons 4,388,460 S,726,683 3,84.'i,044
T01al governmental acuvnles program revenues 26,34l,S96 26,790,868 28,983,385
Net prog111.m n:vcnuCI (e1pcn,ses) { l 22. l'.l0.057) flO'l,795,377) !8S,I I0,137)
O.ncn.l n,vcnuCI and Olher ch3ng,:s in ntl l"Slllon:
Taxes:
Propeny taus 42,38S,2S3 39,907,869 26,733,026
Sales r,u 45,082,ISI 46,102,329 45, 789,026
Trans,em OCCUp,lllCY WCI S,476,167 5,413,49.'i S,211,752
Fraochlsc rwtes 2,831,378 2,755,030 3,076,891
Other ia•c• 31,440 39,235 58,043
Use or money and proerry l,753,319 1,572,43] 2,248,055
Snue mocor vehicle in hc:u (unrC11ric1ed) 11.9.'i I.S77
Other �enaal reveRues S.075,459 ll.Sl0,!92 ,.274,62]
Extl'aO!dinary itern1 l,S0].687 7,900,90]
Transfers
Toial general revenues lllld 01her changes In net posuion 102,63:5,167 l08 802,270 108,243,892
Changes !n nci pos,non. go�rnmenial 11ttivlties • (l9,494,890j 4,006,893 23,133,755
(1) In 2016 !he Sanica1ion Fund w .. reel� from • Govcmmcni.l activity to a Busi=·typc aotivily
142
Fiscal Year
2015 '"' "'" "'" "'" 2010 '""
ll ,1143,299 8,745,250 8,650,762 7,573,827 8,083,976 7,611,620 7,727,545
6&,074,704 64,237,453 66,030,873 67,474,677 63,811,301 64,759,853 65,974.738
(8,432,374 19,408,557 17.469,905 33,194,601 36,351.349 25,887,963 19.860.008
l.760,037 3.487,860 3,463,631 3,653.495 4,098,950 3.924 603 4,260,532
14,226,553 12,58.!i,457 12,618.SSO 11,595.065 l J.703,4611 12,2J9,l68 12,954,817
2,021>,364 797,263 29:1.633 5,Sl0,897 11,603,427 18,202,620 11,111..536
4,677,346 4,232,920 4,517,124 5,187,635 8,993,317 9,428,711 9,944,577
2,343,601 4,522,361 4,208,654 4,397,56!
122.240.617 Jl],494,7{1(1 113,046,478 136.533,798 149,168,!65 146.243,192 136,231,314
6,594,312 6,960,513 6,497,674 7,0S0,813 7,279,418 6,742,305 6,575,231
2, 144,006 2,054,395 l.863,2SO 1,926,1143 1,685,083 1,597,055 l ,719,IYI I
4,642,609 5,108,090 4,890,178 4,947,478 8,711,098 9,178,253 9.436,222
5,889,50] 9,796,993 6,114,917 6,]43,889 5,964,598 7,396.100 6,116.451
5,110.904 4,827,666 6.904.603 7,468,477 5,772.625 5,789 828 6.511.818
3.3S56H 4,658.990 5,358.521 7,J90.J9tl 12.668.226 l0.191.377 8,519,787
27,736.9!9 33.406.647 31.629.143 34.927.898 42081,048 40,894,918 38 879,310
(94,503,688) (80,088, I 13) (81,417,335) (101,605,900) (107,087, 117) (105.348,274) (97,352.(X)4)
24 378.818 23.605,854 27.450.047 J7.0S2.310 46.819.ns 50497,078 58,307,034
43,928.900 40,343,068 37,879,514 36,397,582 32.303.175 28,6!1!,446 34,045,831
4,545,827 3,85),012 3,819.199 3,439,673 3,IU,933 2,723,911 2,763,220
3,157,617 2,950,916 3.029.552 3,001.851 2,771,661 2,54:1,449 2.719,951
37,067 41,159 37,242 35,351 37,626 69,708 411,769
1.629,390 l,782,28S 858,028 2,622,117 4,127,341 4,791,602 7,117,154
11,313,325 10,837,071 l0,443,766 10,393,791 l0,903,030 10,817,690 ll.106.742
J,160.624 3,102,953 1.158,960 1.74S,S32 21,767,895 7,)58,551 5,938.704
15.605.368 10,449.117 (1.497.975) (12,121.701)
107.756,936 96 96),435 83.178,333 82.596.506 121,899,419 107,455,435 122,4l0,405
]3,253,248 16,875,322 l,760,998 119,009,394) 14,812,302 2,107,)61 25 058,40]
143
CITY OF ORANGE
Changes in Net Position - Business-type Activities
Last Ten Fiscel Years
{accrual basis of accounting)
Fiscal Year
2018 2017 2016(1) 2015
Expenses.
Water ' 33,413,891 29,293,848 25,302,258 28,440,276
Sanltatlon 7 926 974 7 761 578 7,591,850
Total Expenses 41.340,865 37,055,426 32,894,108 28,440,276
Program revenues:
Charges for services:
Water 32,419,133 28,192,880 25,733,212 28,795,052
Sanitation 7,838,429 4,408,670 4,353,379
Operating grants and contributions 72,327
Capital grants and contributions 462,951 385,000
Total program revenues 40,257 S62 32 673,877 30 549 542 29 \80,0S2
Net Program revenues (expenses) (1,083,303! (4,381,549! (2.344,566! 739,776
General revenues and other
changes in net position:
Use of money and property 4!,!64 92,860 240,646 156,077
Others 392,537
Total general revenues and ether 41,164 485,397 240,646 156,077
Changes in net position -
business-type activities ' IJ,042,l39j p,8%,152� p,103,9201 895,853
(I) !n 2016 the Sanitation Fund was reclassed from a Governmental activity 10 a Business-type aclivity
144
2014 2013 2012
Fiscal Year
2011 2010 2009
27,914,474
27,914,474
30,870,221
26,153,824
26,153 824
29,329,940
24,714,055
24,714,055
26,943,335
25,056,167
25,056,167
22,541,514
25,427,613
25,427,613
22,351,695
24,676, 117
24,676 117
22,688,351
2,382,000
33,252 221
S,337,747
185,232
!85,232
S,522,919
29,329,940
3l76ll6
32,130
32, 130
3,208,246
1 479,728
28,423,063
3 709,008
132,!68
132 168
3,841,176
22,541,514
(2,514,653)
! 15,!44
llS 144
(2,399,509)
145
I 363,900
23 715 595 22 688,35!
(1,712,018) (1,987,766)
287,214 368,118
287,214 368,118
(1,424,804) (1,619,648)
ClfYOFORANGE
Fund Balances ofGovcmmemal Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(I) In 2016 the Sanitation Fund was reclassed from a Governmental activity to a Business-type activity
146
Fiscal Year
2014 2013 2012 2011 2010 2009
!05,777 !04,969 90,699 9,350,454
34,262,063 29, 150,885 28,388,264 37,688,966
645,160 1,235,027
18,634,450 19,593,444
15,012,102 19,021,106
34,367,840 29,255,854 28,478,963 47,039,420 34,291,712 39,849.577
32,973,321 4, 766,062 33,431,002
58,195,215 23,669,922 52,279,327 65,025,541 •
13,850,031 13,836,833 14,209,956 16,623,055
14,240,824 10,247,492 7,341,801 41,856,308
963,179 (347,541) (4.107,237)
96,129,838 59,662,566
1,871,104 864,965
• 56,456,050 48,952,339
635,868 46,768,997
86,286,070 81,690 747 78 249 605 152,828,669 I 55,092,860 [56,248,867
147
CITY OF ORANGE
Changes in fund Balances of Gcvemmemel Funds
Ll!St Ten Fiscal Years
(modifo:d accrual basb of accounting)
Viscol y.,,,
'"' "" 20161'1
11:e..:nues·
T;ucs ' 92,97'.0l I 91"62.928 77.791.&47
Fr.inchi .. r .. , 2,831,378 2.755,030 3.076.891
L«:ens.. ond perffllli 4.846.681 4.966.017 5.443.lSS
U1e of mooey and pr<:>pffly 1.7SJ.319 I.S?2.4Jl 2.248.055
ln1<1govcrn11,cnal 9.016.736 9.727.861 20.!25.635
CJlar&e$ for J<tvires and fees 10.703.00!I 10.978.973 14.311.067
Fi""" ond forfcilun:s l.8S2,674 1.706,291 l,725.785
G.r.s � cxch:in&<
Oihff "''°",... 47&J,l49 11,495,612 4.732.645
T<llrll Rev<n11<• 128,761,957 13'1,665,145 129,4SS,lll
Expend11ures
Cum:nl.
Gcnenl 10-.mm•,n 11.4H.962 11.369.206 11.059 999
Public ufdy 75.704.854 T.1,292,751 70_"!04,539
Public "'OIU 10.JSl.94S 10099,229 9.732.287
Community <l<V1'1opm<n1 4,545,422 4,IISl,614 4,086.895
p;iru ;and library 14.575.737 13.835.002 12.464.990
Ecooomic: devciopmtnl 2,354,318 2.115,151 2.!ll�.124
Hoolth ond s.111ito1ion
G:is tu uclunie
CapiW Ol&lloy 23.596.982 18.601.383 12,103.521
0.btJ<MCO"
Principal
!mertSl
em, of iu=
Pass-through paymenli
ERAFISF..RAF
T<>1al c,pendnures 142.618,223 132.964.338 122.271.355
Esco" (deficiency) of rc-.nucs ovor (under)
expenduures ( I 3.8S6,266) 1.700.807 7.183958
O!her Fioonc,n.11 secrees <=)·
Tnn,fen ,n 1,042,261 l.765,260 I.S00.000
T<U1Uronou1 (3.257.261) (6..480.260) (2.952.143)
lss1<1nce of long·torm deb!
Payn,col l<> rcfondcd bond ncrow rogouL
Oiscoun, on bonru
Toor! olhcr finonc,flJl so,,,rrcs (u .. ,) ;2.2i,.0001 !2.715.000) (l,452,143!
futno,,hnlr)' g•1ril(losJ) 31.406
Nol clwt1c in fund�=• ' (16,071.266) (1.014.193) 5.763 221
Debi >Crvico .. a pc=nl..lJI• of !IOltoapiW cxpcnditu,.,. o .... 0.0011, ,.,.
(I) In 20 16 11,c Sani!•lion Fund wa, =las>ed fro,n • Govcmn><nt.ol ..,,ivily I<> a Bklilncu·lypc: 1"1lvity
148
Fi.._ol Ye..-
"'" 2014 "'" "'" "'" "'" ""'
72,8\IO,lil I 67,Ml,093 69,!86,002 769s-1,916 82,32'1,492 81,1142,143 9!1.!!69.!!49
3,157,618 2.9�.916 3,029,5'12 3,001,851 2,771,661 2,5.45,449 2,719,950
4,080,299 4,473,.'533 4,009,413 4,002,748 J,774,323 4.326,899 4,173,262
1,629,390 1,780,461 UJ.805 2.474,065 3.SSl,781 4,927,061 7,1'18,274
20,574,583 2U,703,J72 19.!!64.()84 26,778.!!63 28.403.147 27.300,822 26,862,436
13,740,393 17,774,897 ll,800,248 14,145,960 18,177,972 18,200,804 I 7 ,846,59(,
2,190,664 2.34l.OJ2 2.383.191 2.691.867 2.!!0S.03'1 2.406.125 2,447,662
1,399,992 1,400,000 1,400,000 1.400.001 l,283,JJJ
2.640.918 3.022 79! 3.!!99,606 2.078,700 26,ll5,916 l.S06.22l 4,k9,492
120.904.476 120.888.09'1 117,823,893 133.!!28,670 169,2$2.327 146,.555.'527 162,9l0,SS4
9.750,112 7,137,074 6,846,4Sl 6.'}49,681 7,061,583 7,578,767 7,912.6'2
6H120.597 63,914.038 64.873.258 63,178,602 60,918.438 61,06S.S21 63,953,976
9,942,108 9,593,5.48 8,l!00.587 8,062,7S5 7,797,685 8,446,034 9.293.!!12
3,735,548 l.!!36,074 l.447.753 3.467,940 3,962,744 3,904,892 4,038,220
12,796,867 11,272,908 It ,399,670 10,225,175 10,384,204 10,616.892 11.755,994
557,096 71 l.397 404,757 2.0'J4.473 3,205,665 J,041.4115 2,m,568
4,595,026 4,259.091 4,443,690 5012,951 8.722.900 9.(162,949 9,760,095
1.399,992 1,400,000 1.400.000 1,400,001 1,4()0,000
I l,�4.340 l 1,22.'i,32'1 9,538,315 35251.]78 39.454.570 25.073.310 24.314,129
4.345,000 4,165,000 4,034,226 4,216,805
1,038.)17 4,431,985 4,115,79'1 4.1)02.42' �· 3,390,041 ,.n,,595 6,793 642 8,179.688
1,678,909 8,154,699
118.651,694 lll,649,455 111.154,475 !45.466.113 I 59,059,278 153,188,211 151,60S,320
2,252,782 9,238,640 6,669.418 (11,937.443) 10,193,049 (6,731,686) 11,305,234
3,025.395 10,,000 l.855,759 9,968,878 25,269,353 9,642,668 11,624,782
{7,069,316) (255,000J (2,950,759) (15,807,410) (24,978,885) (9,642,668) ()2.049,782)
{4,043.921) \IS0,000! tl.095.000) !5,8]8.!!32) 290.468 (42S,000!
14,548,779 j 1,497 ,975) Q5,228,120)
ll,757,640 9,088,640 4,076.443 (93,004.095) 10.48).!!17 /6,732.686) IO,SS0,234
"·"" """ 000% .... '188% '·"" , ...
149
CITY OF ORANGE
Assessed Vd.lue and Estimated A<.:tud.l Value ofTa.oblc Property
Lase Ten Fiscal Years
Cit
Fiscal Year Taxable Total Direct
Ended June 30 Secured Unsecured Assessed Value Tax Rate
2000 1 l ,874, 120,368 !63,490,390 12,037,610,758 0.160%
2010 J l,477,035,452 ! I l,358,61 l 11,588,394,063 0.161%
2011 11.567,914,343 159,791.812 ll,727,706,155 0.159%
2012 11,764,617,480 !37,861,275 11,902,478,755 0 157%
2013 15,739,584,990 798,565,340 16,538,150,330 0.148%
2014 16,296,788,989 888,670,895 17,185.459,884 0.137%
2015 17.047,541,092 900,737,944 [7,948,279,036 0.132%
2016 !8,044.868,280 923,910,674 18,968,778,954 0.136%
2017 18,745,544,867 820.730.838 19.566,275,705 0.136%
2018 19.781,317,411 816,774,617 20,598.092.028 0.138%
Notes:
In 1978 the voters of the State of California passed Proposmoa 13 which llmited rexes to a total
mmumum rate of 1% based upon the assessed value of the property being taxed. Each year. the
assessed value of property may be increased by an "inflation factor" {limited 10 a maximum
increase of2%). With few exceptions, properly rs only reassessed at the time that it is sold to a new
owner. Al that pomt, the new assessed value is reassessed al the purtbese price of the property
sold. The assessed valuation data shown above represents the only data currently available with
respect to the actual market value of taxable property and is subject to the limitauons described
above.
Secured and Unsecured Assessed Value are net of exemptions. Total direct tax rate rs calculated
usmg total property tax couecnons within me fiscal year divided by the taxable assessed value.
Source: Orange County Audnor-Controller
150
Secured
4,177,247,936
4,139,332,541
3,786,955,403
3,978,376,053
Unsecured
732,744,762
805,662,983
724,046,675
694,261,117
Taxable
Assessed Value
4,909.992,698
4,944,995,524
4.511.002,078
4,672,637,170
151
Total Direct
Tax Rate
0777%
0.618%
0.598%
0.370%
Total for Primary
Government
Total Direct
Tax Rate
0.339%
0297%
0.281%
0.217%
0.148%
0.137%
0.132%
0.136')1,
0.13691.
O.IJ8%
Former Redevelopment Agency
CITY OF ORANGE
Direct and Overlapping Property ru Rates
(Rate per $100 a.�o;essed value)
Last Ten Fiscal Years
F,.scal Year
2018 2017 2016
Basic levy 1.0000 I 0000 1.00000
Overlapping Rates:
School Ser...,ccs:
North Orange County Community College District 002927 0.02885 0.03043
Rancho Sannago Community College Dmnct 0.03013 0.04945 003063
Anaheim Elementary School Dmrict 0.04502 0.04461 004227
Anaheim High School Distnct 0.02211 0.04259 0.04948
Santa Ana Unified School District 006377
Placentia Yorba Lmda Unified
Tus1i11 Unified School Distnct SFID No 2002-1 0.06873 0.07001 0.07751
Garden Grove Unified 2010 Scncs A & B
Total School Services 0.19526 029928 0.23032
Mctropctltan Water District 0.00350 000350 000350
Irvine Ranch waer Distnct 0.06901 002803 002803
Total Direct Rate 1.26777 !.33081 1.26185
Notes:
The above information is for the entire City, which includes the former Redevelopment Agency for
fiscal years through 2012
In 1978, California voters passed Proposition 13 which sets the propeny tax rate at a 1.00% filled
amount. This I 00% is shared by all tall.ing agencies for which the subject property resides within.
In adduion to the 1.00% flxed amount. property owners are charged taxes as a percentage of
assessed property values for the payment of various bonds
Source: California Municipal Statistics, Inc.
152
2015
I.IXXXJOO
2014
I.IXXXJOO
"'"
1.00000
Fiscal Year
2012
1.00000
2011
I 00000
2010
1.00000
2009
I l\000\l
0.01704 0.01704 0.01902 0.01742 0.01758 0.01662 0.01493
0.05078 0.03334 0.03241 0.03146 0.03141 0.02735 0.02253
0.02867 0.05848 0.05382 0.05371 0.03363 003193 002248
0.02412 0.02620 0.02858 0.02678 0.02745 0.02617 002363
006869 0.07359 O.On49 007147 0.07167 007388 0.03212
0 05822 0.06525 0.06203 005846 0.05804 006166 0.04764
006955 0.08912 0.06729 0.05586 0.05962 0.03797 0.03J02
004148 0.03703 0.03135 002483 0.03308
0.3S85S 0.40005 0.37199 033999 033248 0.27558 0.19435
0.1Xl350 0.00350 0.00350 000370 000370 0.00430 0.00430
0.02803 0.05581 005581 005581 0.04591 0.04591 0.03980
1.39008 1.45936 1.43130 1.39950 J 38209 l.32579 1.23845
153
CITY OF ORANGE
Principal Property Taxpayers
Current Year and Nrnc Years Ago
2018 '""' l'crcencagc or ") Percentage or
Taxable Tomi Taxable Tn.oblc Tat:ll Taxable
T" " AssrMed Value Assessed Value Assessed Vallie Assessed Vmlue
Orange CiLy M,Jls LP ' 164,778,309 0 '"' 133,003,542 0.78%
Irvine Cum[Ulny LLC 157,38S,162 0 7611, ""'' Children's Hospital ofOrani:e County io.sn.eu ,,,. """' BeA Porflfolio Inc 129,63!1,448 06311, ooos
Sc JO$Cph flmpl!al of Om,gc 102,044.261 ,,,.. O.OO'h
The Village at Or�e LLC 100,411,7!10 0.4911, '""' Chapmon Univc!>'1ty 89,618Sl75 , ... 0.00.
CRC Real Estate Corporauon 86,626.19!1 0.4211, 0.00%
GPl·OCS LLC 86,359.253 0.42% 0""'
Onni:eCouniy Kulty lnVfflors LLC 8!1.183,!ilO 0.4l'h 0.00%
Maguire Properties '·""' 166,784,790 0 98%
AB.City Parkway LLC ocow 144,576,840 0 8!111,
Mullrock Exccuuve Tower Fee LLC o.oos, 132,000,000 0 7811,
Onnge City SQ N LLC 0.00% 130.686.810 on•
Mnau,re Proponies Cny Pina LLC '·""' 114,628,620 '"' Windsor ot Main Place I LLC 0""' 101.500.000 ceoe
ure Properties Inc ,.,. 94.493,079 0.!161(,
Passco T\10-S LLC ""' 94,065,960 0.56%
3091 Chapman An Apts lnvcs1ors coos 94,000,l!i6 O.!i!i%
• 1, 14!1,!194,476 ,.,.., 1,205,739797 Lill\
(I) Includes assessed value data For both the City and the Former Redevelopment Agency
Source: HdL Coren & Co11e
154
CITY OF ORANGE
Property Tax Levies and Collections
Last Ten Fiscal Years
Colkclc..J w,lh,n Refunds T!Mal Collections
""' Taxes Le•!� Fisc�I Ye;ir or Le•l Colltctiom ofPri0< Yeor within !ht fiou,! Ya:r
Year Ended ,.� Percent for Prior Collcc!ions.l r..n:em
Juoc 30 Fiscal Yeu Amoum o( Levy Fi>Cal Yeors Appeals ·-· of Levy ,.,, 49,467.364 48,091.337 97.22'lli 867.021 (1,6?4.:MS) 47,284,113 95.59% '"" 58,287,611 56,325,449 %6J'l, 1.282.}08 (2)4.924) S7.392.8ll 98.46'l,
2010 56,948.531 Sl..193,878 93 76'lli 1,123,817 (1,173,959) St.70,736 .,�.
2U I l H.4M,442 47.(JUJ,474 89.6\l'l, !IOl.861 (2.272,418) 45.632,917 870S'lli
2012 61,394,602 36,062,-488 ;'i874'll, 511,729 (610,942) 35.963.zn 58.58111,
2013 43.�1.814 24.316.343 55.33111, 419,911 (240,221) 24,496.033 55.7J'l,
1014 42,528,174 23,525,755 SS.32'1. 260,303 (180,204) 2H.OS.8>1 SS.Slit>
201, 44..163.564 23,749 253 53.SJ'll, 218,294 (232.532) 23,735.015 "= "'" 45,251,635 25,697,372 56.79% 204,6117 (154,193) 25.747.866 56.9()111, "" 38.241.617 26.551,729 69.43'lli 194,368 (156,033) 26,590,064 69 3)\l,
"''" 40,644.111 28,338,995 69.72% 174,216 (112,829) 28.400,382 69.87'lli
Nctes:
For flsctl yeais lhrouih 2012. the �mounts include w increment from ro,mor Rcdevclop,ncnl Agency .. well as
amoonts e<>ll<cled by the City ond former Rede,elnpnenl Agency thal wen, pa<se<Hhcoogt, lO (MheroCfn<l8. The
dmolotion or the fonner Redevelopment Agonoy effective Jon•atJ JI, 2012, rcs•lteJ in a n:d""""" ,n collect"""'
in Fiscal Year 2011-1 l.
Information noc 1v11l>hk from 1he Coun,y of(),ange for delinquent t.H« by levy year. Therdore, lhe City ba$ op1«1
to report delinquenl ta.es by rollcc�on year.
Source: 0....ng,: County Auditor-Omlrullcr
155
CITY OF ORANGE.
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Acuvrues
l 998 A Police
Fiscal Tax Facilities Total
Year Ended Anccsuon Certificates Lease Installment Governmental
--"J,,�"-'300c.__ --'-"''"""'"-- of Participauon ----'-'"sYe•shc
l'� __ ,_N0oc"'---- --'Aa'c'c"c"c
'�,· _
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
87,285,000
84,060,000
80,725,000
•
5,360,000
4,565,000
3,735,000
14,226 92,659,226
88,625,000
84,460,000
•
Notes:
Details regarding tile City's outstanding debt can be found in the notes to the financial statements.
I See the Schedule of Demographic and Economic Statistics for personal income. These ratios
arc calculated using city population tunes coumy per capua personal income for two ye= prior
(e.g., 2012 amount is calculated u�mg 2010 data).
1 Based on latest per capita income information available See the Schedule of Demographic aml
Economic Srnt1stics for population data.
l Effecuve January 31, 2012, with the dissoluncn of the former Redevelopment Agency, all Tax
Allocation Bonds and the Pohee Faciliues Certificates of Participation were transferred to the
Successor Agency and are no longer debt otmc City.
156
Business-type Acti vi tics
Tota! Total Percentage
Business-type Total Primary of Personal """ MWDOC SOOMHz Activities Income I • Government Per Capita·
256,000 256.000 92,915,226 I 34% 6'6
227,000 227.000 88.852,000 1.24% 623
195,000 195,000 84,65:'i,OOO l.22% 618
161,000 161,000 161,000 0.00% 0
125,000 125,000 125,000 0.00% 0
• 0.00% 0
0.00% 0
000% 0
0.00% 0
000% 0
157
CITY OF ORANGE
Ranos of General Bonded Debt Outstanding
Last Ten Fiscal Years
Certificates of Participation
"" O.hcr
Bonded Debt
Debt Service
Fund
1998 A Police Less: Amounts
Fecrliues Available in "" Other
Tax Allocation Bonds
Less: Amounts
Tax Available in
Allocation Debt Service
Fiscal
Year Ended
_0J0
,e0o0300,__ 0B0o0
,d0s�- __ _,F0,0
,d,__ _ _,D0oo0d0,0d0De,,,bc
t of Participation
2008
2009
2010
201 I
2012
2013
2014
2015
2016
2017
2018
90,715,000
87,285,000
84,060,000
80,125,000
15,621,412
25,563,465
21.660,977
20,391,019
75,093,588
61,721.535
62,399,023
60,333,981
6, 120,000
5,360,000
4.565,000
3,73:"i,OOO
8,522
8,456
•
6.lll,478
5.351,544
4,565,000
3,735,000
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
I Assessed value has been used because the actual value of taxable property is not readily available in
the State of California. Sec the Schedule of Assessed Value and Estimated Actual Value of Taxable
Propertyfor property value data.
2 Population data can be found in the Schedule of Demographic and Econonuc Statistics.
3 Effective January 3 l, 2012, with the dissolruion of the former Redevelopment Agency, all Tax
Allocation Bonds and the Police Facilities Certificates of Participation were transferred to the
Successor Agency and are no longer debt of the City.
158
Total
Outstanding Percent
Net Other of Assessed Per
Bonded Debi Value I Capita 2
81,205,066 0.509% 577
67,073,079 0.396% 47'
66,964.023 0.404% 469
64,068,981 0.388% 468
• •
•
159
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l<iO
CITY OF ORANGE
Direcc and Overlapp,ng Deb!
June 30, 2018
ID' EHLA l'l'Hffl TAX AND Mil E$SMfNT PE Ill'
Mtuq,oU... """ Dllu!cl
lmM h>:11 W..., Diurla, linpro..,,,... D•ntlCI Ho. 1:U
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1.,,,,. R""'" w .. ,. C.,.,,o<1 1..,.. ... - °""1cl "'° Ill :UJ - °'""" c-iy ..... c-, Colq,: °"""' -s-..,c-u,,con,.,v."""
MIIMl11 lhlloo Hllfl Scllool Dillna ---- r .... u.,,r .... _ °"'""S<toool F ...... ,.. ....,,...,. Dr>O,,., "'" 2002.,
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OrMJ< \lnill«I Sd!ool D111tlCI
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0...,. Un;llod School Dwri<I c--,,;1y f><�tton Dmn<, No lllO).l
Cioyol0rl'\I< C-"'I}' F..,1,,.., [lo- No ,i.1 c..,oro-,,� p..i..., 11n1n<1,.. oo.i
Cl,yofOr,01< 19UA<18-
TOTALOVEIIL.APP!"4:l TAX AND ...SSES.IMEtlT DfBT
U�tRLAPfJN(l O!:.titkAL BIND IIEII
llr>o£OI C-.,.G<oml - Ollll...-
OnoopC<,anry r.n.lon DbliJ""""' - °'"- c-,,. -d o1-..,., c.,,,r....., °'""'"'"'"""
- 0...,. ,:-,. Rrp-1 °""'- ....,,...... �"' """"'""""' °""'" u..11«1 S<l>ool Duln<I cm.-. orl'lrl>clp,aoo ...s 11<o<n,01,h1,..,,.
""'*1,n U- HIP Sd!ool Dllola Crnlll<a«1ol-.,-
Cloyofo._
TI)T Al.DIRF.Cf MID OVERLAW/'111 (l,.NF.RAL FUND DE8T
TOTALIIIII.ECTOUT
TOTAL OVtitUIWINO PE8T
COMBINEDTO'!"AL OEIIT
To,�°"'' """" 1a !�1,1tlkm -� 0.1111.
Ill.Ml.IHI O.,Jl
l'1,6115,IIO ••• 1,,1911?00 u.11•
N6.o3'.IIOI O l•l
l•U3'1,249 i1.m
2DIU1U!! M19
,,,._1)6. •• � om
•lll'J.l.00 ·� IUto.OIJ(l -,
·�'IQ.Qll!l =· IHOOOGOII �� -� •• -� •• 2'.110.000 ••
?lmol.000 •• ··� ••
$11 0.1-11,000 ·�· 3'),16<.J.W ,�
IH90.000 ·� 9610.000 ••• 110.l-lJ.1" Jl.90< -� 0Al9 • ••
m=� AJT-IIIO'I,
ChJ"1Shmo!
lllill lli!lll!I I
M!J.IOli
l.l�JII
l6J70
l4.llr9 "=' &U-14119
940)16
l.:r.!J.Jr1'
n= ,un
19Jld
llll,7\9J21'1
6,l(ll.(UI , __
1• 7lll.000
lJ,O,C.000 .,�
IJ•l.'140.'199
Sl,170.ll.
,._16Ulr9
116.191
If.OJI
'4.-Jl•
161.lll
m 6ll.lll
S,l.!1:U.!lll
• llll,o94 Ml
llll.09fl6!1 "'
I Thepm,,,l>pof�-�IOlbeN,� ..- .... ,,..- ........ P"'l"'ll''"'• A�p<•« -wm:-11)'
........_., ... porta or,M -- dwnd,.........., ""'" "'""""" - ol •11< "'' do>*d II)' .... 4,.....,,, 10b1 ...__ - • .-_
:. i:Adodn lb""""'"""' - """'· ._,. "'"'*·"""""'""""'Md ..... - apllll lfuc obll1Mioos. Q,wlllt<l 1- � lloodl
.. - ....... pnoc,poldo< � -
BalANI 2011 ii bllCMtol YalN!i<m
T .... °""'Pl*'I Tu ...., "'""*'" �
TOl&!Dl'°"D<bl
CoNiood Total Dtb<
A!Cn<iH JamrwYI YIIINA !$1 OZ! 011 ,ur
161
l "" �- ·�·
l.l6![,
CITY OF ORANGE
Legal Debt Margin Information
Lase Ten Fis.::al Year.
Fiscal Year
2018 2017 2016 2015
A==I •aluotion $ 20,596.092.028 19,566,275,705 !8,968,778.954 17,948,279,036
Conversion Jll'tuntagc ,,. ,,. ,,. ,.,.
Ad;usled assessctl •alullion 5,149,523,007 4,891,568,926 4,742.194,739 4,487.069,759
Deb! li,rul pcn:cntagc ,,. ,,. ,,. ,,.
Debi h,ru( 772,428,4.'il 733,735,339 711,329,211 673,060.464
Tot.ol n<:I dcbL applicable 10 limil
Legal dc:b! margin 772.428,451 733.735,339 71l,3Z9,2ll 673,060,464
Total debt applicable to the lirnil
as• pcn:cn!•gc of debt limiL "'" o ... o ... o ...
162
fiscal Yc,ir
"'" 2013 2012 2011 2010 ""'
17.185.459.884 16.538.150.330 1 0.575.115.9"'..5 16.238.708.233 16.587 .389.587 16.947.603,456 ,,. ,,. ,,. ,,. ,,. ,,.
4.296.364,971 4.134.537.583 4.143.778.981 4.059.677.058 4.146 847.397 4.2'.l(i.900.864 ,,. ,,. ,,. ,,. ,,. ,,.
644,454,746 620, 1 R0,637 621,566,847 60R,95l,559 622,027, 110 635.535.130
644.4:14.746
o ....
620.180.637
o ....
621.566.847
c ....
163
"''
622.027.1 lO
,,.
635.535.130
'"'
CITY OF ORANGE
Pledged-Revenue Coverage
Last Ten Fiscal Years
Tax Allocauon Bonds
Fiscal Year Property Tax Debt Service
Ended Jone 30 Increment Prmcipal Interest Coverage
200') 38,153,844 3,430,000 3,642,366 5.39
2010 30,543,383 3.225,000 3,824,694 4.33
2011 26,955,003 3,335,000 3,704,799 J.83
2012 23,821,071 3,475,000 3,573,509 3.38
2013
2014
2015
2016 •
2017
2018
l&I
CITY OF ORANGE
Demographic and Economic Statistics
Last Ten Fiscal Years
Pcr>on�! Income
Fiscal Year (cxprcs�d Pr:rCapita Public School Unemployment
Ended June 30 Populauon '·' in tho�sands) 1 Personal J11comc , Emullmcnt 3 Rate•
2009 141.634 l48,372.b28 49,020 15,866 8.6%
2010 142,708 147,138,449 48,760 16,026 8.8%
2011 136,995 154,131,SJS 50,440 15.8°'1 8.5%
2012 138.010 166,634,101 54,00S 15,263 7.3%
2013 138,792 169,792,810 54,519 15.417 s.rw
2014 139,279 173,305,6SO 55,096 15,147 ,,.
2015 140,0')4 183.052,341 57.749 !4,982 4.2%
2016 140,761 1%,920.661 62.071 14.581 4.3%
"'" 140,882 • • 14)56 "'' 2018 141.952 • • 14,072 , ...
Sources·
'Suuc ofCahfornia, Dcpanmcnt of Finance
2 U.S. Department of Commerce, Bureau of &:onomic Analysis (data shown is for the County)
J Orange Unified School Dlsmcr region
• State of California, Employment Dcve!opmem Department
1 In fiscal year 2015-16, information was rcv1�cd to improve accuracy
• Not available at time of pnnting
165
CITY OF ORANGE
Principal Employers
Current Year and Nine Years Ago
2018 """ Pcrccn!of Percei,t of
NumMrof Total NumMrof T=>
F.m lo er Employees Employmen! Employees Employment
UCI Medical Center 4,800 6.92% 3,986
CHOC Children's Hosp1!al 3,500 5.04% 2,J 14
St. Joseph Hospital of Orange 2,900 4.18% J,909 '" CashCall lnc, - Mortgage Division 1,350 1.95% •
Chapman University 1,235 1.78% 800 •
Samiago Canyon College 950 1.37% 500 •
Ca10prima Health Ptens 930 1.34% •
American Advisors Group (AAG) 869 1.25% •
C1tyofOrange 760 I.I O"/o 869
We,nem Denial Services, !nc. 7)0 1.05%
AECOM Teehnology Corp 548 0.79%
Notes:
"Total Employment" as used above represents the total employment of all employers located within City
limits.
' Incudes Outpatient Psvihon
Source. Inside Prospects, Inc and State of California EDD
166
CITY OF ORANGE
Full-Time Equivalents
by Function
Last Ten Fiscal Years
Full-Time l:.qulv•l•n,s .. or J..,. JO• , __
2018 l017 l016 lOI!! 2014 2013 2012 2011 2010 ,-
Go•ommenlll A<ti •• ua.
Cl<flor,.I Go•omment " n rz " " " " .. •• •• l'IJblic Safely "" "' "' '" "' "' "' '" "' "' Pubhc Work, .. " " " " " " " " " Community O.•elop,nem " " " " " " " " " " PIOIU or.d Ubnuy ,., ,., "' ,., '"' ,., "' "' "' '" Economic O.,..olopmom " " " " Soni111ion(l) " " " " ,, ,, ,,
lM1to1al s<>""mmen,.l octtv,rl .. .,. "' ... no "' '" , .. "' "' "' s .. 1..,. T 1P" A<li»tlci
Wotor ., ., ., ., •• .. •• • .. • Saniio.tion (l) " " " Sub<OU>I busioo,...lyp: ..:1 •• i�cs .. .. .. ., •• •• •• •• • •
TOIO.l oc�•ilic, ''" ,., , .. , .. "' , .. "' '" "' , ..
• Incl""°' bud&<!<d I><>! !tow, pM•llon>
(I) In fi><:al yur201!! 16. the S&nilllion fund wu =lusiFocduo Hu,i,.....Typo ... <!lvll)'
Source: CityofOnonge
167
CITY OF ORANGE
Operating fndicarcrs by Dep�nmenl
LB&tTen Fiscal veers
FU<•I Ye"'
w" 2017 2016 201S
Ci1y Allomc)'.
Numt.... ofc!olOl<ICUOS handlod I '" "' .. , '"' Numborof....,lkdlofts/o«lln.lllCal� '"' "' '"' '" Ci1yClm:
Numberofpusporu ?"'Coned' 2,611 l.183 2,669 l.&l7
Number afda<umc,,11 .....,..d 4.6S8 '·'" 2,184 2,220 "- Numb.-afbusiness li<en""' «-<I 20,6S9 20.487 20.721 20,190
Number af wal« KCDUnll billed 35,216 lS,l88 lS.JIIO lS,174
H""'""R""""""':
Number af=n,i1men11 Mid " " .. ..
Number or •pplitalions .....,.,....., 7,19] t.s .. e.sea 6,717
L,brvy:
Number or 1,..,.. cllc<:kod 1>111' Sl6,l02 541,270 616,388 64),791
Toul llbratycard< SS,644 57,078 S\1,162 59.) 16
Number ofpa,ronvv;,;,.,.. 4ll,S82 426.861 469,700 502,276
"" Nomber af cal!o:
Modi<al 12,463 12,048 12,327 9,416
"' ·� ... ,n '" """ 2,4S7 2,336 J,022 l,B4l
Nwnber of inspections performed '·"' 6,868 e.see S,970
J'olloo:
Number or coll, for ,c,vi« 109.192 100.876 99,728 10l,79l
Nwnber or-... S,667 4,S6B 4,771 4,6Bl
Pubhc W<rts:
Lone miln of ilr-eclS tc>Wfooc,l " " as " Mi1<sor-, .... PI 37,617 40,766 l9,8SO 40,180
Wotu Dlvl<>an·
Number of Klivc water C<llU\cction. 36,431 36.)91 ]6.)72 36,347
Million plkw of doily •=>i< di,tnbuhon " " " " s .. 1,.,1.,,, 01v1,1.,,,,
Number of Ktive ICWa" C<lMeClior,,: Jl,9.1,6 ll,951 J3,9SO JJ,94]
Nuo\ber of catch t.,I"' l"'P«lod 1,910 1,98] 1,98] 1,952
Co,nm...,ily o.v..lopmen1·
Number ofpennib IHuod l,SS2 4,229 4,1'3 l,80)
CombineJ oon>tn.w:l,on V1lu11ion ' 132,814.044 ' 114,940,690 235,.llS,312 106,328,212
Comrn\ltll1y Ser,,lcn
Number ofconllxl cl ..... Mio 1,188 1,044 1,148 1,212
Tolll panicl?U"t< ot oll acli•itink"C,llS 1.060.872 1.060,893 918,&0S 934,188
Nola:
' Err.ctlw 20CW-IO oil typea ofc111-.... ""' Incl oded lo ptlor �,. Mly """°I" 1ypa ofcltim<lca,e, Wtt< ind,;ded
' In Flsc.11 Yur lOI !·16. lnl'otMl<ioo ...., '*"IW<I "'""""'"* ""'""""J
' 10 F"-1 y- 2016-11. mr-""' - =....t "'nlp,v.., ""'"<J.
S<iun:c, C11)" ofO....,:
168
foc,I '<'=
2014 201] "" 2011 lOIO ,�
'" "' '« "' "' " "' '" '" "' "' '"
1.530 1,28& '·"" 1,075 "ru l,416
2,810 3,0811 J,601 S,107 9,222 S,210
19,991 19,699 21,026 21,S8l 21,80S 22,644
3S,166 lS,ISl 36,338 36,326 36.313 36,293
" " •• " " " 9,88) 8,189 7,744 l.OJJ 1,4SS S,806
688,716 6'17,81! 648,690 670,8!6 696,!73 653,143
60,063 61,282 so. 731 70,711 64,621 Sl,8SS
S34,686 Sl0,864 494.)72 541,158 S24,424
9,0Sl 9,938 '·"' 9,06S 8,88& 8,667 "' '" '" .. , '" '" 1.813 '·"" 1,627 '·"' 1,719 1.S62
S,Sl8 6,959 6,944 6,922 6,910 6.)38
98,148 99,%7 101.783 W,687 108,348 109,119
4,S5B 4.424 4,771 S,767 5,686 6,073
" " u " '" • 32.219 32,219 32,137 32,155 32,330 n.e'n
36,332 36,324 16.087 36,327 JS,13S ll.254 " " " " " "
33,513 ll,51 l 33,51 l 33,510 33,423 33,461
1.970 l,9S9 1,775 , ... 80 1,855
],497 2,7)} 2,8i, 2,6113 2.S22 2.477
l63,8S4,728 74,830,424 ! 18,859,205 112,740,914 6'1,066,166 90,468.l)J , .... 1,858 1,610 l,675 1,400 "' 909,192 593,69'.I S9S,Sl8 72.121 12,600 71,017
169
CITY OF ORANGE
Capital Asset stausucs by Department
Last Ten Fiscal Years
Fiscal y.,,.r
2018 2017 2016 20!5 2014
Library:
Number of libraries J J J J J
Number of hooks & Other items held I 218,688 231.715 223,161 212,373 209,128
Fire:
Number of fin, stations 8 8 8 8 8
Number of vehicles in fleet 58 58 58 '" 57
Police·
Nu mber of )tat ion sJs ub-std! ions ' 2 2 2 2
Number of vehicles in flee! 132 132 132 132 1'8
Public Works.
Stmi:ts (m miles) 324 324 331 328 328
Number of st=ilights 7.836 3,182 3,182 3,!25 2,926
Number of traffic !iignals 157 157 157 157 156
Number of streei trees 20,316 22,000 22,000 20,430 19,728
Water Division.
Number of wells 12 14 17 1, 16
Wa1er m.llns (in miles) "'2 "'' "' "' 452
Number of hydrams 4.434 4.389 4,417 4.4!0 4,413
Samtalion Division·
Miles of sewer lines/storm drains 436 "' '" '" 436
FM1lit1es Maintenance Division:
Number of city buildings owned 82 82 82 82 82
Square feel of rny buildings 512,000 ."112,000 529,995 ."12'l,9'n 529.99."l
Number of omer city vehicles '" 771 771 236 241
Community Services·
Number of park.1 22 22 22 22 22
Acres of parkland' "' "' "' "' "' Number of community pools 2 2 ' ' 2
Nut es;
' In Fiscal Year20l7 and 2014, inrormauon was revi� io improve accu<Ky.
170
2013 2012
Fiscal Year
20[ J 2010 2009
3 3 3 3 3
266,487 272,077 262,284 254,718 254,03[
8 8 8 8 8
" " " " "
2 2 2 2 3
128 129 128 126 126
327 314 339 326 332
2.780 2.696 2,662 2.601 2,863
"' "' 153 148 149
19,528 19,746 19,520 21,352 21,947
17 17 17 17 17
'" '50 '50 '50 "' 4,4 1 l 4,399 4,398 4,371 4,351
"' "' "' '" "'
82 82 82 " 86
529,995 529,995 529,995 552,696 550,896
2'1 '" '" "' "'
22 22 22 22 22
252 252 '" 252 252
2 2 2 2 2
171
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172
en y Of OllANGt
ORANGtCJVIC CtNTER
!'OST oence BOX 449
300 EAST CHAPMAN AVENUE. OllANGI: CALlfORNIA 92866-1591
(i1'1) 744-SSOO