ML23045A200

Annual Financial Statements for Fiscal Year Ended June 30, 2022; City of Anaheim

ML23045A200
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Site:	San Onofre
Issue date:	06/30/2022
From:	City of Anaheim, CA
To:	Office of Nuclear Reactor Regulation
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Year Ended June 30, 2022 Annual Comprehensive Financial Report

~ H~lilf Anaheim, California Prepared by the Finance Department

City Council Trevor O'Neil Jose Diaz Gloria Ma'ae Jose F. Moreno Avelino Valencia Stephen Faessel Mayor Pro Tern Council Member Council Member Council Member Council Member Council Member District 6 District 1 District 2 District 3 District 4 District 5 Anaheim, California

CITY OF ANAHEIM Annual Comprehensive Financial Report Table of Contents June 30, 2022 Page INTRODUCTORY SECTION (Unaudited)

Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 7 Organization Chart 9 Administrative Personnel 10' FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis (Unaudited) 19 Basic Financial Statements Government-wide Statements Statement of Net Position 41 Statement of Activities 43 Fund Financial Statements Balance Sheet 45 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 47 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 48 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 49 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - General Fund 50 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - Housing Authority 51 Statement of Net Position - Proprietary Funds 52 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 54 Statement of Cash Flows - Proprietary Funds 55 Statement of Fiduciary Net Position (Deficit) - Fiduciary Funds 58 Statement of Changes in Fiduciary Net Position (Deficit) - Fiduciary Funds 59 Notes to Financial Statements 61 Required Supplementary Information (Unaudited)

Schedule of Changes in the Net Pension Liability and Related Ratios 123 Schedule of Pension Plan Contributions 127 Schedule of Changes in the Net Other Postemployment Benefits (OPEB) Liability and Related Ratios 129 Schedule of Other Postemployment Benefits (OPEB) Plan Contributions 130 Combining Individual Fund Statements and Schedules Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds by Fund Type 133 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds by Fund Type 134 Combining Balance Sheet - Nonmajor Special Revenue Funds 135 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 136 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds 137 Balance Sheet - Nonmajor Debt Service Funds 141 Statement of Revenues, Expenditures and Change in Fund Balance - Nonmajor Debt Service Funds 142 Schedule of Revenues, Expenditures and Change in Fund Balance ~ Budget and Actual - Debt Service Funds 143

CITY OF ANAHEIM Annual Comprehensive Financial Report Table of Contents June 30, 2022 Page Combining Balance Sheet - Nonmajor Capital Projects Funds 144 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Nonmajor Capital Projects Funds 145 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Budget and Budgetary Basis Actual - All Capital Projects Funds 146 Internal Service Funds Combining Statement of Net Position - Internal Service Funds 153 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 154 Combining Statement of Cash Flows - Internal Service Funds 155 Fiduciary Fund Combining Statement of Fiduciary Net Position - Custodial Funds 159 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds 160 STATISTICAL INFORMATION (Unaudited)

Net Position by Component - Last Ten Fiscal Years 164 Changes in Net Position - Last Ten Fiscal Years 165 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years 167 Fund Balances of Governmental Funds - Last Ten Fiscal Years 168 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 169 General Government Tax Revenues By Source - Last Ten Fiscal Years 170 Assessed Value and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years 171 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 172 Principal Property Tax Payers - Current Year and Nine Years Ago 173 Property Tax Levies and Collections - Last Ten Fiscal Years 174 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 175 Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 176 Direct and Overlapping Governmental Activities Debt - As of June 30, 2022 177 Legal Debt Margin - Last Ten Fiscal Years 178 Pledged-Revenue Coverage - Last Ten Fiscal Years 179 Demographic and Economic Statistics - Last Ten Fiscal Years 181 Principal Employers - Current Year and Nine Years Ago 182 Full-time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 183 Operating Indicators by Function - Last Ten Fiscal Years 184 Capital Assets Statistics by Function - Last Ten Fiscal Years 186 OTHER INFORMATION (Unaudited)

Summary of Pension Liability Funding Progress 191 Summary of Other Postemployment Benefits (OPEB) Funding Progress 192 City of Anaheim Map 193

Introductory Section Anaheim, California

\ lntroductorv Section

CITY OF ANAHEIM CITY OF ANAHEIM PROFILE City of Anaheim, California The City of Anaheim is located in northwestern Orange County, approximately28 miles southeast of downtown Los Angeles and 90 miles Finance Department north of San Diego. The City lies on a coastal plain, which is bordered by the Pacific Ocean to the west and the Santa Ana Mountains to the east. The City is the oldest and most populous city in Orange County.

Anaheim is home to the Disneyland Resort, the Anaheim Convention Center, the Anaheim Regional Transportation lntermodal Center (ARTIC}, and two major league professional sports teams including the Angels Major League Baseball team, which utilizes Angel Stadium of December 22, 2022 Anaheim, and the Anaheim Ducks National Hockey League team, which utilizes the Honda Center.

To the Honorable Mayor and City Council City of Anaheim The City of Anaheim was founded and incorporated in 1857. In June Anaheim, California 1964, the local voters approved a City Charter. The City operates under the Charter with a Council-Manager form of government. The six City In accordance with the Charter of the City of Anaheim (City), please Council members are elected to four-year terms in alternate slates every accept submission of the Annual Comprehensive Financial Report two years. In February 2016, the City Council unanimously adopted the (ACFR} for the fiscal year ending June 30, 2022. Responsibility for the city's first districting map and election sequence, changing the election accuracy of the data, completeness, and fairness of the presentation, of council members from an at-large system to a by-district system as of including all disclosures, rests with the City. We believe the data the November 2016 election; the Mayor continues to be elected at-large.

included is accurate in all material aspects, and is presented in a manner The Mayor presides over meetings of the City Council and has one vote.

designed to fairly set forth the financial position and operational achievements of the City, as measured by the financial activity of its The City Council appoints the City Manager, who heads the executive various funds. In addition, all disclosures necessary to enable the reader branch of government, implements City Council directives and policies, to gain maximum understanding of the City's financial activities have and manages the administrative and operational functions through the been included. various departmental heads, who are appointed by the City Manager.

The City Charter requires an annual audit of the City's financial City full-time employees numbered 2,031 in 2022, of whom 617 were statements by an independent Certified Public Accountant. Accordingly, assigned to the Police Department and 330 to Fire & Rescue. The latter this year's audit was completed by KPMG LLP. In addition to meeting the has eleven stations; the City enjoys a Class One fire insurance rating, the requirements set forth in the City Charter, the audit was also designed highest rating possible.

to meet the requirements of the Single Audit Act Amendments of 1996 Anaheim, with a population of 341,245 in 2022, is a significant and the Uniform Guidance. The auditors' report on the basic financial contributor to the diverse Orange County economy, which is home to statements is included in the financial section of this report. The more than 8,500 manufacturing plants. Product manufacturers include auditors reports related specifically to the single audit are presented as notable manufacturing businesses focused on defense and aerospace, a separate document. biomedical, electronics, machinery, and computer products. The City Management's discussion and analysis (MD&A) immediately follows has over 24,000 active business licenses, of which over 17,000 are the independent auditors' report and provides a narrative introduction, businesses operating within the City's boundaries.

overview, and analysis of the City's basic financial statements. MD&A The City provides a wide range of municipal services. Core services complements this letter of transmittal and should be read in conjunction include public safety, parks, community centers, libraries, electric, with it. water and sanitation utilities, public works, planning and building, and convention center operations.

CITY OF ANAHEIM The unemployment rate in Anaheim for June 2022 was 2.9%, while the Public safety remained a high priority with the installation of national average was at 3.6% and the state average at 4.0%. cameras along Beach Boulevard and Anaheim Police Department's implementation of an upgraded 911 system that sends callers text ECONOMIC CONDITION AND OUTLOOK messages with information on the status of their service call. The Public The COVID-19 pandemic took a toll on the city, with reductions to city Works Department continued efforts to improve traffic signals, streets services due to restrictions that prevented tourists and residents from and neighborhoods, through different rehabilitation programs along enjoying the many amenities that the city has to offer. As the pandemic East Street, Orange Avenue, Ball Road and the Lotus Neighborhood.

has subsided, the City of Anaheim has experienced a strong recovery.

For the fiscal year ended June 30, 2022, Transient Occupancy Tax and MAJOR INITIATIVES Sales and Use Tax revenues have exceeded anticipated performances.

With direction from the Mayor and City Council, City management Amazingly, these sources of revenue surpass pre-pandemic levels, identifies the priorities that shape the path for Anaheim's future. City proving that the City of Anaheim is stronger than ever. The city's recovery initiatives are reevaluated regularly, and new items are frequently speaks to the value and strength of our core revenue generators and added to ensure that City efforts are consistent with the priorities of Anaheim as a premier visitor destination.

our policy body and the community. The City strives each year to better California GDP has effectively made a complete recovery from the fulfill its mission of delivering outstanding municipal services that pandemic. While the state has regained just 72% of the jobs lost from are responsive to our entire community by continuing its tradition of the beginning of the pandemic, California is adding jobs at a faster rate fostering innovation, ingenuity, and opportunity in its operations. This than the national average and that is expected to continue in 20221. helps achieve the primary goals of focusing on ensuring public safety Technology, logistics and defense sectors are expected to help drive in our communities, combatting homelessness, increasing community this growth in the labor market. Although California still has not seen engagement and outreach, investing in our neighborhoods, and international tourists return to the state, domestic tourists have more enhancing our city's infrastructure. City staff is dedicated to seeking than been able to make up for that loss2

• Pent-up demand from the innovative and efficient ways to conduct business to ensure that pandemic has led tourism, especially in Orange County and Anaheim Anaheim remains a vibrant community for the years to come.

to return to 2019 levels. Passenger counts at John Wayne Airport are ENSURING PUBLIC SAFETY: Public safety is one of the City's top priorities at pre-pandemic levels and hotel occupancy has nearly recovered.

with the Anaheim Police Department (APD} and Anaheim Fire & Rescue Home prices in California and Orange County have soared as inventory leading the charge and delivering the highest level of service focused is at record lows and demand remains high. Momentum for new on the safety of our residents, visitors and businesses. APD is increasing development, especially industrial and apartment buildings, continues their recruitment efforts and offering incentives in order to accelerate to increase. Some of the biggest planned developments in Orange the hiring of up to 40 new Police Officers to support their public safety County, Disneyland Forward and ocV!BE, will be in Anaheim. Orange mission.

County has been fortunate to recover quickly and the economy remains strong and is expected to continue that way.

• Community Engagement - APD will continue to expand relationships to maintain _a safe community and increase During the pandemic, the City of Anaheim continued to dedicate itself community trust and collaboration with businesses, faith-based to recovery by investing in neighborhoods and continuing to provide organizations, non-profits, schools, and residents. In an effort valued public services. The Community Care Response Team continued to help residents and businesses with crime prevention, APD to address homelessness throughout the city. The Housing and plans to refocus its efforts on the Neighborhood Watch program Community Development Department created 124 units of affordable throughoutthecity, with the goal ofadding ten new neighborhoods housing for homeless seniors, veterans, and those experiencing mental to the program. APD will also proactively impact crime through health issues. The Anaheim Public Library developed STEAM Adventures, innovative solutions including intervention through engagement, inspiring kids in the areas of Science, Technology, Engineering, Art, and proactive and strategic enforcement, problem-solving quality of Math.

life issues, intelligence-driven and collaborative efforts, through l The Beacon Outlook California. Beacon Economics. Spring 2022. Tanner Osman, PhD.

2 UCLA Anderson oc Regional Economic Outlook. April 27, 2022. https://youtube.com/watch?v=cfl_PeMBhf4 2

CITY OF ANAHEIM education and awareness, judicious investigations, and the

• Providing Youth Programs - The City will continue to provide apprehension of offenders. opportunities to assist Anaheim youth through programs like Project S.A.Y. (Support Anaheim's Youth}, S.T.A.R.S. (Study-Time,

• In-House Emergency Medical Services -Anaheim Fire & Rescue Arts, Recreation, and Sports} and Fun on Wheels. Seasonal will fully implement the Anaheim Ambulance Transportation day camp programs are offered in a variety of topics including Program, which will provide cost savings to the city, increase CampVenture for children ages 6-12 with opportunities for outdoor careers in fire service through dedicated training and education, activities, crafts, games and sports, and the complementary and ensure excellent service and stability to Anaheim residents TeenVenture program, a counselor in training course for teens and visitors.

ages 13-16. Summer and Winter Reading Programs will continue to INVESTING IN OUR NEIGHBORHOODS: An investment and commitment be offered at Anaheim libraries with storytimes, STEAM programs, to individuals, families and the community and improving quality of life teen volunteer opportunities, and cultural celebrations.

for our residents continues to be a priority for the city.

OUTREACH TO OUR COMMUNITY: Anaheim is dedicated to providing

• Rebuild Beach Initiative - The City's renewed effort to address services and resources to the community, including residents who face the overall quality of life on Beach Boulevard will continue with homelessness.

increased crime enforcement, including the addition of more

• Fostering Street Exits- The Community Care Response Team public safety cameras, proactive code enforcement, business (CCRT} responds to noncriminal, non-emergency homeless calls watch, neighborhood involvement, strategic acquisitions and for service in an effort to shift from a police response to a team additional investments to reshape and improve Beach Boulevard.

of outreach workers, nurse practitioners, mental health clinicians

• Increasing Affordable Housing- The City will continue to advance and plain-clothed safety officers. The CC RT will continue to provide affordable housing, which includes motel conversions to increase resources, while helping homeless neighbors off the streets and the amount of extremely low-income units. Some upcoming directly into housing.

projects include the motel conversion of the Tampico Motel and

• Addressing Mental Health - The City has created the Be Well OC the Studio 6 Motel to permanent supportive housing.

pilot program to provide a mobile crisis response program that is

• Providing Senior Services - There are many programs and intended to strengthen the City's approach to mental health calls services aimed at assisting the City's senior residents, including for service by diverting calls away from public safety to mental Anaheim's Active Older Adult program which provides a wide array health workers and case managers.

of programs and services that benefit the health and well-being IMPROVING OUR INFRASTRUCTURE: Maintaining an Anaheim that of Anaheim's seniors. City housing assistance, through the Senior residents are proud to call home is a priority for Anaheim.

Safety Net Program, helps seniors facing hardships meet their housing costs by providing counseling, case management,

• Sidewalk, Roadways and Infrastructure Improvements - Street emergency and rental assistance. The Senior Mobility Program rehabilitation projects provide for a well-maintained and efficient also provides low cost transportation services to Anaheim senior transportation network. Planned projects include: 1,100,000 square citizens and will be expanded to run seven days a week, with feet of pavement slurry sealed, 1,312,000 square feet of pavement additional lines to meet the needs of residents. replaced, and 97,000 square feet of sidewalk replaced. Traffic signal coordination/upgrades at Euclid Street from Glenoaks

• Improving Recreational Spaces - Improving the quality and Avenue to Crescent Avenue will improve traffic flow and reduce appearance of city parks, recreational facilities, and athletic fields traffic congestion, while neighborhood improvement projects ensures that these public spaces remain vibrant, safe, inviting, such as the one planned for the Sabina neighborhood will focus and accessible. Projects include new playground equipment at on pavement structure, improving the ride quality and safety Rio Vista Park and Center Greens as a result of grants received of residential streets, enhance the walkability of sidewalks, and from KABOOM!, a nonprofit organization whose mission is to beautify the neighborhood.

create great play spaces through the participation and leadership of communities.

• Enhancing Electric and Water Service Reliability and Resiliency-Anaheim Public Utilities is strategically replacing and upgrading 3

CITY OF ANAHEIM electric infrastructure to strengthen system reliability. Operational FINANCIAL INFORMATION investments include adding wildfire cameras, upgrading Management of the City is responsible for establishing and maintaining technology software and hardware systems, and continuing to internal control designed to ensure that the assets of the government install automation of equipment. Capital investments include are protected from loss, theft, or misuse, and to ensure that adequate undergrounding overhead lines, replacing direct buried cable with accounting data are compiled to allow for the preparation of financial conduit systems, replacing and sizing transformer replacements statements in conformity with U.S. generally accepted accounting to meet future needs, and extending new circuits to improve principles. Internal control is designed to provide reasonable, but not operational flexibility during outages and increase capacity. absolute, assurance that these objectives are met. The concept of

• By replacing aging water utility infrastructure, Anaheim Public reasonable assurance recognizes that: (1) the cost of a control should Utilities is able to increase water system reliability, reduce not exceed the benefits likely to be derived; and (2) the valuation of maintenance costs, reduce service interruptions and increase costs and benefits requires estimates and judgments by management.

system efficiency. Operational strategies include prioritizing This report consists of management's representations concerning the projects through an asset management system, exercising valves finances of the City. As a result, management assumes full responsibility to optimize operational control, and implementing automation for the completeness and reliability of all of the information presented at various locations. Capital investments include replacing aging in this report. Management asserts that, to the best of their knowledge water mains, installing groundwater treatment to return lower and belief, this financial report is complete and reliable in all material cost wells to service, and upgrading older pump stations and respects.

regulating stations.

BUDGETARY CONTROLS:

ENCOURAGING BUSINESS GROWTH: The City is dedicated to creating and maximizing resources to invest in businesses, strengthen the city's The City maintains budgetary controls, the objective of which is to economy and promote a well-qualified workforce._ ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the

• Supporting Major Developments - The Planning & Building General Fund, special revenue funds, debt service funds, capital Department leads the city's efforts to entitle major development projects funds, and all the proprietary funds are included in the annual projects including ocV!BE and Disneyland Forward. The successful appropriated budget. The level of budgetary control (that is, the level management and implementation of these projects will promote at which expenditures cannot legally exceed the appropriated amount) vibrant destinations for the city's residents while also bringing is established at the departmental level. The City also maintains an more visitors to Anaheim. encumbrance accounting system as one technique of accomplishing

• Increasing the Number of Large Conventions and Events - The budgetary control. Encumbrances generally are re-appropriated as part City is working to maximize the number of large conventions and of the following year's budget.

events brought to Anaheim and looks forward to welcoming back RELEVANT FINANCIAL POLICIES:

VidCon, D23, Solar Power International, Natural Products Expo West, and NAMM who will come together to meet face to face Through sound fiscal management, the City of Anaheim positions itself once again. to provide a positive atmosphere for economic development and the flexibility to strategically address budgetary challenges that result from

• Attracting New Businesses - With the creation of the new fluctuations in the local, national, and global markets. As ofJune 30, 2022, Economic Development Department, the City is focusing on the City's General Fund has a spendable, unassigned fund balance of $52 growing our existing businesses while also creating policies and million. Excluding the long-term interfund payable of $33 million, the programs aimed at attracting new businesses and development unreserved fund balance amount totaled $85 million, which represents opportunities, including strategic acquisitions along priority 21% of the General Fund total fiscal year 2021-2022 expenditures.

corridors. Traditionally, the policy has been to maintain General Fund reserves at Amid the strong recovery, the City of Anaheim is looking to the future a minimum of 7 to 10% of expenditures. The City has a long-standing by focusing on core strategies of public safety and neighborhoods, while practice of recognizing and reserving for known and anticipated also addressing current and future obligations. liabilities. The City's compensated absences and self-insurance liabilities 4

CITY OF ANAHEIM is 94% funded. Additionally, the City has established an irrevocable trust current annual comprehensive financial report continues to conform for other postemployment benefits (OPEB) and continues to make the to the Certificate of Achievement Program's requirements and we are annual required actuarial determined contribution (ADC) to ensure this submitting it to GFOA to determine its eligibility for another certificate.

future liability is fully funded.

ACKNOWLEDGMENTS LONG-TERM FINANCIAL PLANNING:

The preparation of this report on a timely basis is a team effort involving On June 22, 2022, the City Council adopted the fiscal year 2022-2023 many dedicated people across the entire organization. I would like to budget. Additionally, as a companion to approving the budget plan, a extend a special thanks to the talented finance professionals throughout five-year Capital Improvement Plan was presented to the City Council. the City, led by Peggy Au, Financial Accounting Manager. Appreciation The five-year plan links anticipated expenditures for infrastructure is also expressed to Mayor Ashleigh E. Aitken, Council Member Jose Diaz, development with community needs and desires, and provides a City Manager James Vanderpool, and Assistant City Manager Gregory citywide perspective of recommended projects and proposed funding A. Garcia for their significant contributions as members of the Audit sources. The Capital Improvement Plan was finalized in June 2022, Committee. In closing, without the leadership and support of the City and totaled $877 million for the five-year fiscal period ending June Council, preparation and results of this report would not have been 30, 2027. The five-year Capital Improvement Plan has been submitted possible. Its leadership has made possible the implementation of these and annually updated, in its present form, since 1982, for effective important and innovative concepts in fiscal management by the City.

long-range planning purposes. It is City Management's belief that these two plans give City Council members an expanded opportunity to set Respectfully submitted, policy and provide direction for implementation, resulting in improved management efficiency and improved financial results.

AWARD GOVERNMENT FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA (GFOA) CERTIFICATE OF ACHIEVEMENT AWARD: ~a~

The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Anaheim, California, for its annual James Vanderpool Deborah A. Moreno comprehensive financial reportforthefiscal year ended June 30, 2021. This City Manager Finance Director/City Treasurer was the 46th consecutive year that the City has achieved this prestigious award (fiscal years ended June 30, 1976 through 2021). In order to be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both U.S. generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our 5

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CITY OF ANAHEIM The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Anaheim, California for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021.

The Certificate of Achievement is a prestigious national award recognizing conformance with the highest Government finance Officers Association standards for preparation of state and local government financial reports.

Certificate of In order to be awarded a Certificate of Achievement, a Achieve1nent governmental unit must publish an easily readable and for Excellence efficiently organized Annual Comprehensive Financial in Financial Report, whose contents conform to program standards.

Reporting Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.

Prcscmcd to A Certificate of Achievement is valid for a period of City of Anaheim one year only. We believe our current report continues California to conform to Certificate of Achievement program requirements, and we are submitting it to GFOA.

For its Annual Comprehensive Financial Report For the Fiscal Ycar Ended ltlne 30, 2021

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CITY OF ANAHEIM

. Residents of An.atieim . . ..

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Elected Policy Maker Council Appointed Officers Mayor Appointed Boards and Commissions and City I Council I City Attorney City Clerk City Manager Budget, Investment & Technology Planning Commission Administration Official Records Commission Public Utilities Board Civil Elections Prosecution Passport Services Community Services Board Senior Citizen Commission Cultural & Heritage Commission Sister City Commission Housing & Community Development Workforce Development Commission Board Libr_ary Board Youth Commission Parks & Recreation Commission City Administration City Manager's Office Audit 7~----1: External Affairs I I I I I I I _______..I___, I I Economic Fire & Rescue Planning & Police Community Housing & Convention, Finance Human Public Utilities Public Works Development Building Services Community Sports and Resources Support Services Special Water Services Engineering Development Entertainment Business Planning Services Enforcement Parks Recruitment &

Fire and Rescue Budget and Energy Operations Development Workforce Convention Employment Operations Building Services Field Services Golf Operations Accounting Resources Development Center Fleet and Facility Property Benefits Fire Prevention Community Community & Recreation Operations Purchasing Financial Services Development Housing and Community Preservation and Resort Policing Employee Management Human and Visit Anaheim Cashiering Construction Successor Risk Reduction Licensing Grants Relations Services Investigations Neighborhood Services Agency Stadium Information Emergency Services Organizational Electric Services Obligations Support Services Operations Services Financial and Management and Development Library Services Administrative Preparedness Arena Operations Risk Management Services Grove Operations ARTIC Operations 9

CITY OF ANAHEIM Administrative Personnel As of June 30, 2022 City Manager James Vanderpool Assistant City Manager Gregory A. Garcia Chief of Police Jorge Cisneros City Attorney Robert Fabela City Clerk Theresa Bass Housing & Community Development Director Grace Ruiz-Stepter Community Services Director Sjany Larson-Cash Convention, Sports & Entertainment Executive Director Thomas Morton Economic Development Director Sergio M. Ramirez Finance Director/City Treasurer Deborah A. Moreno Fire Chief Patrick Russell Human Resources Director Linda N. Andal Planning & Building Director Ted White Public Utilities General Manager Dukku Lee Public Works Director Rudy Emami 10

Financial Section Anaheim, California Financial Section

KPMG LLP Suite 1500 550 South Hope Street Los Angeles, CA 90071-2629 Independent Auditors' Report Honorable Mayor and City Council in the Auditors' Responsibilities for the Audit of the Financial City of Anaheim, California: Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance Report on the Audit of the Financial Statements with the relevant ethical requirements relating to our audit. We believe Opinions that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate Responsibilities of Management for the Financial Statements remaining fund information of the City of Anaheim, California (the City),

as of and for the year ended June 30, 2022, and the related notes to the Management is responsible for the preparation and fair presentation of financial statements, which collectively comprise the City's basic the financial statements in accordance with U.S. generally accepted financial statements as listed in the table of contents. accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair In our opinion, the accompanying financial statements referred to above presentation of financial statements that are free from material present fairly, in all material respects, the respective financial position of misstatement, whether due to fraud or error.

the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of In preparing the financial statements, management is required to June 30, 2022, and the respective changes in financial position and, evaluate whether there are conditions or events, considered in the where applicable, cash flows thereof and the respective budgetary aggregate, that raise substantial doubt about the City's ability to comparison for the General Fund and Housing Authority Fund for the continue as a going concern for twelve months beyond the financial year then ended in accordance with U.S. generally accepted accounting statement date, including any currently known information that may principles. raise substantial doubt shortly thereafter.

Basis for Opinions Auditors' Responsibilities for the Audit of the Financial Statements We conducted our audit in accordance with auditing standards Our objectives are to obtain reasonable assurance about whether the generally accepted in the United States of America (GAAS) and the financial statements as a whole are free from material misstatement, standards applicable to financial audits contained in Government whether due to fraud or error, and to issue an auditors' report that Auditing Standards, issued by the Comptroller General of the United includes our opinions. Reasonable assurance is a high level of States. Our responsibilities under those standards are further described assurance but is not absolute assurance and therefore is not a 13

guarantee that an audit conducted in accordance with GMS and Conclude whether, in our judgment, there are conditions or Government Auditing Standards will always detect a material events, considered in the aggregate, that raise substantial misstatement when it exists. The risk of not detecting a material doubt about the City's ability to continue as a going concern for misstatement resulting from fraud is higher than for one resulting from a reasonable period of time.

error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements We are required to communicate with those charged with governance are considered material if there is a substantial likelihood that, regarding, among other matters, the planned scope and timing of the individually or in the aggregate, they would influence the judgment audit, significant audit findings, and certain internal control related made by a reasonable user based on the financial statements. matters that we identified during the audit.

In performing an audit in accordance with GMS and Government Required Supplementary Information Auditing Standards, we: U.S. generally accepted accounting principles require that the management's discussion and analysis and the required supplementary Exercise professional judgment and maintain professional information as listed in the accompanying table of contents be skepticism throughout the audit.

presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part Identify and assess the risks of material misstatement of the of the basic financial statements, is required by the Governmental financial statements, whether due to fraud or error, and design Accounting Standards Board who considers it to be an essential part of and perform audit procedures responsive to those risks. Such financial reporting for placing the basic financial statements in an procedures include examining, on a test basis, evidence appropriate operational, economic, or historical context. We have regarding the amounts and disclosures in the financial applied certain limited procedures to the required supplementary statements.

information in accordance with GMS, which consisted of inquiries of management about the methods of preparing the information and Obtain an understanding of internal control relevant to the audit comparing the information for consistency with management's in order to design audit procedures that are appropriate in the responses to our inquiries, the basic financial statements, and other circumstances, but not for the purpose of expressing an opinion knowledge we obtained during our audit of the basic financial on the effectiveness of the City's internal control. Accordingly, statements. We do not express an opinion or provide any assurance on no such opinion is expressed.

the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made Supplementary Information by management, as well as evaluate the overall presentation of the financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining individual fund statements and schedules as listed in the accompanying table of contents are presented for 14

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purposes of additional analysi*s and are not a required part of the basic Other Reporting Required by Government Auditing Standards financial statements. Such information is the responsibility of In accordance with Government Auditing Standards, we have also management and was derived from and relates directly to the issued our report dated December 22, 2022, on our consideration of the underlying accounting and other records used to prepare the basic City's internal control over financial reporting and on our tests of its financial statements. The information has been subjected to the auditing compliance with certain provisions of laws, regulations, contracts, and procedures applied in the audit of the basic financial statements and grant agreements and other matters. The purpose of that report is certain additional procedures, including comparing and reconciling such solely to describe the scope of our testing of internal control over information directly to the underlying accounting and other records used financial reporting and compliance and the results of that testing, and to prepare the basic financial statements or to the basic financial not to provide an opinion on the effectiveness of the City's internal statements themselves, and other additional procedures in accordance control over financial reporting or on compliance. That report is an with GMS. In our opinion, the information is fairly stated, in all material integral part of an audit performed in accordance with Government respects, in relation to the basic financial statements as a whole.

Auditing Standards in considering the City's internal control over financial reporting and compliance.

Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory, statistical, and other information sections but does not include the basic financial statements and our auditors' report thereon. Los Angeles, California Our opinions on the basic financial statements do not cover the other December 22, 2022 information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

15

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CITY OF ANAHEIM Management's Discussion and Analysis accounting, transactions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related (Unaudited) cash flows. Thus, assets, liabilities, revenues and expenses are reported in these statements for some items that will only result in cash flows in As management of the City of Anaheim (City), we offer readers of the future fiscal periods (e.g. uncollected revenues and accrued but unpaid City's basic financial statements this narrative overview and analysis of interest expense) .

the financial activities of the City as of and for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented The Statement of Net Position presents information on all of the City's here in conjunction with additional information that we have furnished assets, deferred outflows of resources, liabilities and deferred inflows in our letter of transmittal, which can be found in the introductory of resources, including capital assets and long-term liabilities, with the section of this report, and the City's basic financial statements in the difference reported as net position. Over time, increases or decreases financial section of this report. All amounts, unless otherwise indicated, in net position may serve as a useful indicator of whether the financial are expressed in thousands of dollars. position of the City as a whole is improving or deteriorating.

The Statement of Activities presents information showing how the City's OVERVIEW OF THE BASIC FINANCIAL STATEMENTS net position changed during the most recent fiscal year. Functional activities are highlighted in this statement, whereby direct and indirect This discussion and analysis are intended to serve as an introduction functional costs are shown net of related program revenue. This to the City's basic financial statements. The City's basic financial statement shows the extent to which the various functions depend on statements are comprised of three components: l) government-wide general taxes and non-program revenues for support.

financial statements, 2) fund financial statements, and 3) notes to financial statements. This report also contains other supplementary The government-wide financial statements distinguish functions of information in addition to the basic financial statements themselves. the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities) . The governmental COMPONENT'S OF activities of the City include general government, Police, Fire & Rescue, ftlE ANNUAL FINANCIAL R.EPORl Housing & Community Development, Economic Development,

,-~ ----- --- *- -. --. ----

r

---

' )._

- - - - ., Planning & Building, Public Works, Community Services, Public Utilities (street lighting), Convention, Sports and Entertainment (Visit Anaheim Monog.menl's le,quhd and the Honda Center), and interest on related long-term debt. The loslc Anonclol Supplementary Dlscunlon and $tale1Mnh

~ lnfofmoffon business-type activities of the City include the electric, water and sanitation utilities, golf courses, convention, sports and entertainment venues (Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim) operations, and the Anaheim Regional Transportation lntermodal Center (ARTIC) operation.

Notes to the fvnd flnanc:lal Rnonc*Ia1 The government-wide financial statements include not only the Stale!Mnb Stoteme-nls City itself, but also the Anaheim Housing Authority, Anaheim Public Financing Authority, and Anaheim Housing and Public Improvement Summary-- - - - - - -- Detan Authority. Although these entities are legally separate, they function for all practical purposes as a part of the City, and therefore have been Government-wide financial statements a re com prised of the Statement included as blended component units as an integral part of the primary of Net Position and the Statement of Activities. These two statements government.

are designed to provide readers with a broad overview of the City's The government-wide financial statements can be found on pages finances utilizing the full accrual method of accounting, in a manner 41-43 of this report.

similar to a private-sector business. Under the full accrual method of 19

CITY OF ANAHEIM Fund financial statements focus on current available resources and are found as part of other supplementary schedules on pages 137-140, 143, organized and operated on the basis of funds, each of which is defined and 146-149 of this report.

as a fiscal and accounting entity with a self-balancing set of accounts, Proprietary funds of the City include the Enterprise funds and internal established for the purpose of carrying on specific activities or attaining service funds. Enterprise funds are used to report the same functions certain objectives in accordance with special regulations, restrictions presented as business-type activities in the government-wide financial or limitations. All of the funds of the City can be divided into three statements. The City uses its enterprise funds to account for its electric, categories: governmental funds, proprietary funds, and fiduciary funds.

water and sanitation utilities, golf courses, convention, sports and Governmental funds are used to account for essentially the same entertainment venues and ARTIC operations. Internal service funds are functions reported as governmental activities in the government-wide an accounting device used to accumulate and allocate costs internally financial statements. However, unlike the government-wide financial among the City's various functions. The City uses internal service funds statements, the governmental funds financial statements utilize the to account for its general benefits and insurance, motorized equipment, modified accrual basis ofaccounting, which focuses on near-term inflow information services, and municipal facilities maintenance functions.

and outflow of spendable resources, as well as on balances of spendable Because these services predominantly benefit governmental rather than resources available at the end of the fiscal year. Such information may be business-type functions, they have been included with governmental useful in evaluating a government's near-term financial requirements. activities in the government-wide financial statements.

Because the focus of the governmental funds is narrower than Proprietary funds provide the same type of information as the that of the government-wide financial statements, it is useful to government-wide financial statements, only in more detail. The compare the information presented for the governmental funds proprietary funds financial statements provide separate information with similar information presented for governmental activities in the for all of the enterprise funds, which are considered to be major funds government-wide financial statements. By doing so, readers may better of the City. Conversely, all of the internal service funds are combined understand the long-term impact of the government's near-term into a single, aggregated presentation in the proprietary funds financial financing decisions. Both the governmental funds Balance Sheet and statements. Individual fund data for the internal service funds is provided the governmental funds Statement of Revenues, Expenditures and in the form of combining statements elsewhere in this report.

Changes in Fund Balances provide a reconciliation to facilitate this The proprietary funds financial statements can be found on pages 52-57 comparison between governmental funds and governmental activities.

of this report.

The City maintains 19 individual governmental funds. Information is Fiduciary funds are used to account for resources held for the benefit of presented separately in the governmental funds Balance Sheet and parties outside the government. Fiduciary funds are not reflected in the in the governmental funds Statement of Revenues, Expenditures and government-wide financial statements because the resources of those Changes in Fund Balances for the General Fund, and the Housing funds are not available to support the City's own programs.

Authority Special Revenue Fund which are considered to be major funds and can be found on pages 45-46 and 48 of this report. Data The City maintains two different types of fiduciary funds. The for the remaining 17 governmental funds are combined into a single, Private-Purpose Trust Fund is used to account for the assets and aggregated presentation. Individual fund data for each of these liabilities held in trust for the Successor Agency to the Redevelopment non major governmental funds is provided in the form of supplementary Agency (Successor Agency); the Custodial Fund is used to account for combining statements on pages 133-136, 141-142, and 144-145 of this funds held in a custodial capacity for the benefits of others.

report.

The fiduciary fund financial statements can be found on pages 58-59 The City adopts an annually appropriated budget for all governmental of this report.

and proprietary funds. Budgetary comparison statements for the Notes to the financial statements provide additional information General Fund and the major special revenue fund (Housing Authority) that is essential to a full understanding of the data provided in the are required to be presented; these schedules are included in the government-wide and fund financial statements. The notes to the basic financial statements on pages 50-51 of this report. Additionally, financial statements can be found on pages61-120 of this report.

budgetary schedules for the other _non major governmental funds have been provided to demonstrate compliance with the budget and can be I

2(

L

CITY OF ANAHEIM Required Supplementary Information presents the required $289,778 (33%), and business-type activities decreased by $85,858 supplementary information for pension and its related ratios, the Other (28%).

Postemployment Benefits (OPEB) and its related ratios. This information

• At the close of the current fiscal year, the City's governmental can be found on page 123-130 of this report.

funds reported a combined fund balance of $578,460, an increase The combining and individual fund statements and schedules present of $101,171 in comparison with the prior fiscal year. Approximately combining individual fund statements referred to earlier in connection 38% of this amount or $218,380 is available for spending at the with nonmajor governmental funds and internal service funds. Also City's discretion (total of committed, assigned and unassigned included are the budgetary comparison Schedules of Revenues, fund balances).

Expenditures and Changes in Fund Balances for all nonmajor special

• At the end of the current fiscal year, unrestricted fund balance revenue funds, all debt service funds, and all capital projects funds.

(total of committed, assigned and unassigned fund balance)

These statements and schedules can be found on pages 133-160 of this for the General Fund was $166,390 or 40% of total General Fund report.

expenditures. Unassigned fund balance was $52,351 or 13% of total General Fund expenditures. Excluding the long-term interfund FINANCIAL HIGHLIGHTS (Amounts in thousands) payable of $33 million, reserves were $85,351 or 21% of General Fund expenditures.

• The City's total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the end of the

• The City received $53,300 in June 2022, the final allocation of the current fiscal year by $2,119,642. $107,000 federal assistance through the federal American Rescue Plan (ARP). These funds were allocated to the General Fund to

• The City's governmental activities represent $871,486 (41%) and partially offset revenue losses due to COVID-19 pandemic closures.

the business-type activities represent $1,248,156 (59%) of the City's total net position.

• The City received various COVID-19 related fundings during the fiscal year. Emergency rental assistance totaling $31,215, of which

• The City's net position has a net increase of $261,557 (14%} as a

$9,019 was provided by the U.S. Department ofTreasury and $22,196 result of the current fiscal year's operations. The net position of from the State of California (State) allocation. These funds provided the City's governmental activities increased by $193,717 (29%) and assistance to eligible families experiencing difficulty in meeting the business-type actiyities net position increased by $67,840 rental commitments impacted by the COVID-19 Pandemic. At (6%}.

fiscal year end, $9,154 was unspent. Emergency Solution Grant

• The City's restricted net position of $358,787 represents amounts (ESG) totaling $5,841 was provided by the U.S. Department of available for ongoing programs and obligations with external Housing and Urban Development (HUD) for additional homeless restrictions. shelter and prevention assistance. The COVID-19 Pandemic Relief for Utility Customers Arrearages Programs administered through

• The City's total capital assets, net of accumulated depreciation, the State provided a total of $6,225 to apply bill credits to eligible increased by $30,887. Capital assets in the City's governmental customer accounts including electric, water and wastewater activities decreased by $5,767 (less than 1%) and business-type services. Of this total, $4,757 provided by the State was credited activities capital assets increased by $36,654 (2%) during the to electric customers; accounts; $1,468 provided by the State current fiscal year.

Water Resources Control Board; of which $1,077 was credited to

• The City's total long-term debts increased by $113,852 (6%) during customers' water accounts and $334 to the wastewater accounts.

the current fiscal year; of this amount, long-term debts in the The unallocated fund of $57 was remitted back to the State Water City's governmental activities decreased by $13,436 (2%}, and Resources Control Board.

business-type activities increased by $127,288 (11%).

• The City's total other long-term liabilities decreased by $375,636 (32%) du ring the current fisca I year; of th is amount, other long-term liabilities in the City's governmental activities decreased by 21

CITY OF ANAHEIM NET POSITION JUNE 30, 2022 AND 2021 Governmental Activities Business-ty:ee Activities Total Government 2022 2021* 2022 2021* 2022 2021*

Current and other assets $ 885,463 $ 816,289 $ 866,962 $ 727,093 $ 1,752,425 $ 1,543,382 Capital assets, net 1,459,009 1,464,776 2,211,740 2,175,086 3,670,749 3,639,862 Total assets 2,344,472 2,281,065 3,078,702 2,902,179 5,423,174 5,183,244 Deferred outflows of resources 143,113 143,214 46,223 41,802 189,336 185,016 Total assets and deferred outflows of resources 2,487,585 2,424,279 3,124,925 2,943,981 5,612,510 5,368,260 Current liabilities 154,064 192,740 169,779 157,746 323,843 350,486 Long-term liabilities less current portion 1,211,092 1,516,874 1,485,343 1,444,743 2,696,435 2,961,617 Total liabilities 1,365,156 1,709,614 1,655,122 1,602,489 3,020,278 3,312,103 Deferred inflows of resources 250,943 36,896 221,647 161,176 472,590 198,072 Total liabilities and deferred inflows of resources 1,616,099 1,746,510 1,876,769 1,763,665 3,492,868 3,510,175 Net position:

Net investment in capital assets 1,147,895 1,138,182 1,091,868 1,074,102 2,239,763 2,212,284 Restricted 277,443 260,160 81,344 70,372 358,787 330,532 Unrestricted (553,852) (720,573) 74,944 35,842 (478,908) (684,731)

Total net position $ 871,486 $ 677,769 $ 1,248,156 $ 1,180,316 $ 2,119,642 $ 1,858,085

• As restated due to implementation of Governmental Accounting Standards Board Statement No. 87 At the end of fiscal year 2022, the City's net position totaled $2,119,642 to fiscal year 2021. Higher cash collection from taxes and City reflecting a net increase of $261,557 or 14% from the prior fiscal year. services contributed to the increases in cash, cash equivalent, and investments.

Current and other assets, including cash, cash equivalents and investments, restricted cash equivalents and investments, receivables,

• Restricted cash, cash equivalent and investments increased by prepaid items, land held for resale, lease and notes receivable, totaled $123,586 {26%). Governmental activities had a net increase of

$1,752,425 had an increase of $209,043 {14%) as compared to the prior $620. An increase of $36,165 for the Lease Payment Measurement fiscal year; of this amount governmental activities increased by $69,174 Revenue (LPMR) bonds is due to increase in the revenue bases and business-type activities increased by $139,869. (see note 10 on page 88 of the notes to the financial statements for further discussion of LPMR); an increase of $7,577 is from the

• Unrestricted cash, cash equivalent and investments increased unspent homeless shelter and emergency rental assistance grants; by $51,027 {8%) of which governmental activities had an and an increase of $7,201 is from the unspent ambulance and increase of $33,347 and business-type activities had an increase technology equipment loan proceeds. Offsetting the increases is of $17,680. The City experienced a strong recovery after a a decrease of $50,000 return of the Stadium sale deposit. In May thirteen-month long closure of the Anaheim Resort, hotels, and 2022, the Anaheim City Council unanimously voted to void the the entertainment venues impacted by the COVID-19 Pandemic.

2020 Agreement to sell Angel Stadium of Anaheim. Business-type Transient occupancy taxes (TOT), sales taxes, and demands for City activities had an increase of $122,966. The increase is primarily services such as convention, sports and entertainment events, due to bond proceeds from the issuances of the 2022 Revenue utilities, construction services, police services and community bonds for the Electric Utility ($132,147) and Water Utility ($50,000),

recreational and sporting classes have all increased as compared

CITY OF ANAHEIM partially offset by the spending down of bond funds for capital Apartment project ($2,000) and the Studio 6 Model ($1,005) during projects which included $25,779 in Electric Utility, $17,152 in Water the fiscal year; offset by a decrease in loan payments received.

Utility, $378 in Sanitation Utility, and $6,912 in Convention, Sports The City's capital assets, net of accumulated depreciation, increased by and Entertainment Venues. The Electric Utility also paid $4,180

$30,887 (1%). Additional information about changes to the City's capital for decommissioning liability and $375 for San Juan Reclamation assets can be found on pages 34-35.

liability from the restricted cash accounts during the fiscal year.

Deferred outflows of resources, including deferred charges on refunding

• Accounts receivable increased by $36,760 (40%). The increases bonds, deferred items related to pension and Other Postemployment in governmental activities of $13,962 were primarily attributable Benefits (OPES), totaling $189,336 increased by $4,320 (2%). The to increases in TOT receivable ($10,706), Anaheim Tourism increases are primarily due to the following:

Improvement District (ATID) special assessment receivable

($1,357), and an increase of $1,532 of receivable from police services

• Net change of deferred pension related items decreased by provided for entertainment and special events. These increases $10,308 which included a decrease of $12,603 from current fiscal are primarily due to taxes and demand for city services resuming year amortization of the deferred items related to pension, and a to normal operation following removal of COVID-19 pandemic combined decrease of $3,924 in deferred pension related items per related restriction orders. Paramedic services receivable had an actuarial plan valuation, primarily due to the difference between increase of $2,963 due to increased emergency medical service projected and actual plan experience; offset the decreases by transports and the time to process the claims and collection an increase of $6,219 in pension contribution subsequent to of payments. Offsetting the increases is the decrease of a measurement date.

one-time receivable of $2,366 from a general liability insurance

• Net change in deferred OPES related items increased by $12,579 reimbursement in the prior-fiscal year. Business-type activities reflecting an increase of $17,226 per plan actuarial valuation, had an increase of $22,798. The Water Utility had an increase primarily due to changes in assumption; offset the increase by a of $15,832 in construction cost reimbursement related to the decrease of $4,647 of current year amortization.

Per-and Polyfluoroalkyl Substances (PFAS) treatment facilities; the Convention, Sports and Entertainment Venues had an increase of

• Deferred charges on refunding bonds had an increase of $2,049

$4,975 in receivable due from event billing customers and various (5%). An increase of $8,337 is due to issuances of Electric Utility, convention services. The increase is due to the Convention Center Water Utility and the Convention Center Expansion refunding reopening for events following the COVID-19 closure. bonds; offset the increases by the current year amortization of

$6,288.

• Due from Other Governments increased by $7,724 (18%) primarily due to an increase in sales tax receivable of $4,422 reflecting Current liabilities, including accounts payable, wages payable, interest higher sales tax revenues at the end of the fiscal year; an increase payable, current portion of long-term debt, current portion of other of $1,609 in receivable is due from the State for a newly approved long-term liabilities, deposits and unearned revenues, totaled $323,843 cost reimbursement through the Ground Emergency Medical and decreased by $26,643 (8%). The decreases are primarily due to the Transportation (GEMT) program; and an increase of $2,051 in following:

receivable for the Community Development Block Grant (CDBG)

• Deposit payable decreased by $50,173 primarily due to $50,000

($856) and ESG grant ($1,195) expense related reimbursements.

return of deposit for the Stadium sale.

• Prepaid and other assets decreased by $20,257 (14%) reflecting

• Current portion of the long-term debt increased by $3,994; a reduction of $20,280 in prepaid purchased power with the corresponding increase to the cost of purchased power expense

• Accounts payable increased by $13,996 (12%) mainly due to when the power was purchased during the fiscal year in the timing of scheduled disbursements to suppliers and construction Electric Utility. contractors.

• Notes receivable increased by $7,804 (12%). The Housing Authority The City's long-term liabilities, less current portion, decreased by $265,182 provided affordable housing development loans for the Miraflores (9%). Additional information about changes to the City's long-term Apartment project ($6,026), the Anaheim Center of Hope liabilities can _be found on pages87-112.

CITY OF ANAHEIM Deferred inflows of resources, totaling $472,590 increased by $274,518 needed to repay this debt must be provided from other sources, (139%). The increases include the following: since the capital assets themselves cannot be used to liquidate these liabilities. Net investment in capital assets increased by $27,479 (1%)

• Deferred items related to pension increased by $235,103. This primarily due to the addition of capital assets offset by a reduction of increase is primarily due to an increase of $319,027 from plan the related outstanding debt due to current year principal payments actuarial valuation primarily due to the difference between and current year addition to accumulated depreciation.

projected and actual earnings resulting from favorable plan investment earnings and the difference between expected and An additional portion of the City's net position of $358,787 represents actual experience; offset the increases by the decrease of $83,924 resources that are subject to external restrictions on how they may in current year amortization. be used. This amount increased by $28,255 from the prior fiscal year.

Restricted net position of the governmental activities increased $17,283

• Deferred items related to OPEB increased by $47,578 primarily primarily due to increases of $20,113 in unspent restricted resources due to the increase of $66,156 between expected and actual including ATID revenues ($3,667), park development fees ($2,037),

experience, and the increase between projected and actual affordable housing projects ($7,000), homeless shelter and Homeless investment earnings; offset by a decrease of $18,578 in current Housing Assistance & Prevention (HHAP) grants ($5,189), CDBG program year amortization.

income ($1,200), and various Fire and Community Services restricted

• Regulatory credits had an increase of $1,426 reflecting a net resources ($1,020). Offsetting the increases is a decrease of $3,747 change of amount collected from Utilities customers ($41,426) in capitalized interest restricted for the 2021 Working Capital Bonds.

reduced by amount recognized as Rate Stabilization Account Restricted net position in the business-type activities increased by revenues ($40,000) from the Electric and Water Utilities during $10,972 primarily due to an increase of $5,643 in resources restricted for the fiscal year. Additional information about regulatory credits debt service, an increase of $1,398 for capital projects primarily restricted can be found on note l of the notes to the financial statements, for the Electric and Water Utilities' renewal and replacement for utility on page 69. plant as required per the bond indenture, and an increase of $3,931 primarily for the Electric Utility public benefits projects.

• Deferred charge on refunding bonds increased by $5,595 primarily due to issuance of the Electric revenue refunding bonds ($6,538) The remaining deficit balance of $478,908 is the unrestricted net offset by a decrease of $941 from current year amortization. position reflecting a decrease in deficit of $205,823 from prior fiscal year.

Of the total deficit in unrestricted net position, the net effect from the

• Offsetting the above increases is a decrease in deferred regulated unfunded net pension liability, the unfunded net OPEB liability, and the business activities of $11,942. This deferred item is primarily related deferred inflows and outflows of resources account for $783,735; funded from investment earnings of the decommissioning assets this deficit amount decreased by $97,281 primarily due to favorable OPEB in excess of the decommissioning liabilities. During the fiscal and Pension Plan investment earnings from the actuarial valuation for year, an adjustment was made to reduce the deferred regulated measurement date June 30, 2021, resulting in favorable amortization business activities and to increase decommissioning liability by reflecting in pension and OPEB expenses. The unfunded net OPEB and

$11,070 resulting from an increase in estimated decommissioning pension liabilities are long-term liabilities that will be funded annually liability. The account was also reduced by $872 due to unrealized in accordance with actuarially determined contribution amounts and investment loss.

rates. The positive component of the unrestricted net position, excluding The largest portion of the City's net position of $2,119,642 reflects its the effects of OPEB and pension liabilities, is $304,827 and may be investment in capital assets (e.g. land, buildings, utility plant, machinery, used to meet the City's ongoing obligations to citizens and creditors.

equipment, and infrastructure), net of any related outstanding debt This amount increased by $108,542 reflecting results from current year that was used to acquire those assets. The City uses these assets to operation with revenues and expenses resuming to normal operation provide services to citizens; consequently, these assets are not available following the removal of restriction orders related to the COVID-19 for future spending. Although the City's investment in capital assets Pandemic.

is reported net of related debt, it should be noted that the resources 2L

CITY OF ANAHEIM CHANGE IN NET POSITION YEAR ENDED JUNE 30, 2022 AND 2021 Governmental Activities Business-:tYge Activities Total Government 2022 2021 2022 2021 2022 2021 REVENUES Program revenues:

Charges for services $ 105,751 $ 81,732 $ 668,061 $ 610,955 $ 773,812 $ 692,687 Operating grants and contributions 247,271 226,525 603 88 247,874 226,613 Capital grants and contributions 30,090 36,376 31,363 9,751 61,453 46,127 General revenues:

Taxes:

Property taxes 94,554 90,222 94,554 90,222 Sales and use taxes 103,374 76,811 103,374 76,811 Transient occupancy taxes 177,057 29,797 177,057 29,797 Other taxes 9,592 8,902 9,592 8,902 Unrestricted investment earnings (losses) {9,228} 1470 {6,907} 2295 {16,135} 3 765 Total revenues 758 461 551835 693120 623 089 1,451,581 1,174,924 EXPENSES Program activities:

Governmental activities:

General government 20,418 25,415 20,418 25,415 Police 147,972 182,509 147,972 182,509 Fire & Rescue 79,516 103,696 79,516 103,696 Housing & Community Development 149,709 122,411 149,709 122,411 Economic Development 3,806 5,928 3,806 5,928 Planning & Building 22,419 25,695 22,419 25,695 Public Works 56,366 60,664 56,366 60,664 Community Services 38,547 39,721 38,547 39,721 Public Utilities 2,075 2,171 2,075 2,171 Convention, Sports & Entertainment 23,879 8,071 23,879 8,071 Interest on long-term debt 33,093 31,527 33,093 31,527 Business-type activities:

Electric Utility 389,898 378,087 389,898 378,087 Water Utility 95,407 96,920 95,407 96,920 Sanitation Utility 64,186 66,022 64,186 66,022 Golf Courses 8,432 6,046 8,432 6,046 Convention, Sports & Entertainment Venues 51,776 51,239 51,776 51,239 ARTIC Management 2525 2548 2 525 2 548 Total expenses 577 800 607 808 612,224 600 862 1,190,024 1,208,670 Excess (deficiency) before transfers 180,661 (55,973) 80,896 22,227 261,557 (33,746)

Transfers in (out) 13 056 4 270 {13,056} {4,270}

Increase (decrease) in net position 193,717 (51,703) 67,840 17,957 261,557 (33,746)

Effect of implementing GASB Statement No. 87 (6,293) (6,293)

Net position at beginning of year 677 769 735 765 1,180,316 1,162,359 1,858,085 1,898,124 Net position at end of year $ 871,486 $ 677,769 $ 1,248,156 $ 1,180,316 $ 2,119,642 $ 1,858,085

CITY OF ANAHEIM significant growth during the fiscal year. Despite the Pandemic, TOT receipts for December 2021 were the highest of any historical REVENUES BY SOURCE - GOVERNMENTAL ACTIVITIES month on record. Sales tax had an increase of $26,563 (35%). The City's share of sales and use tax is equal to 1% of taxable sales Unrestricted investment los s generated within the City (or 1% of the 7.75% sales tax rate). When

- 1% the Resort reopened in spring 2021, the rebound was swift and Transient occu pancy taxes robust due to pent up demand for domestic travel. While resort 23% Other taxes related businesses have not fully returned to pre-pandemic levels 1% on an annual basis, the fourth quarter of 2021 was a record high for General Retail citywide. Additionally, sales tax revenues in the Sales and use taxes Transportation, Construction and Business to Business sectors Operating grants and contributio .. .

14%

33%

reached all-time highs during the fiscal year. The transportation sector was boosted by highs in new and used auto sales while Property taxes 12%

Capital grants and construction saw highs in both wholesale and retail building contributions materials. Property taxes had an increase of $4,332 (5%). Steady 4%

demand and limited supply have continued to fuel a hot market and housing prices are at an all-time high that provided an increase to the base upon which taxes are levied.

Governmental activities increased the City's net position by $193,717.

Key elements of this increase are as follows:

• Charges for services increased by $24,019 (29%). With the reopening of Anaheim Resort and hotels, ATID had increased by $19,153; police The most significant revenues of the governmental activities are general services provided to Disneyland and other entertainment and taxes (50%), which include transient occupancy taxes (23%), property special events increased by $4,474; paramedic revenues increased taxes (12%), sales and use taxes (14%), and other taxes (1%). Program by $5,064 due to increased numbers of medical transports; and revenues are 51% of the total revenues of the governmental activities, an increase of $1 ,609 in paramedic cost reimbursement provided which include operating grants and contributions (33%), capital grants by the State GEMT program; the Housing and Community and contributions (4%), and charges for services (14%); and unrestricted Development had an increase of $2,226 in residual receipts from investment losses (-1%) of the total revenues.

ground leases, and a one-time revenue share from a property sale Public safety (Police and Fire & Rescue) expenses are the most significant of $1,196 distributed from the Long Range Property Management (39%) of all governmental activities' expenses, followed by Housing Plan. Offsetting these increases is a decrease of one-time gain on and Community Development (26%), Public Works (10%), Community sale of land held for resale in Economic Development of $8,229 Services (7%), interest on long-term debt (6%), and various other in the prior fiscal year; and a decrease of $2,168 in strike team programs (12%). Included in these amounts is depreciation expense, reimbursement as fewer activities occured during the fiscal year.

which is 8% of the total expenses for governmental activities.

• Operating grants increased by $20,746 (9%}. Emergency rental Governmental activities revenues increased by $206,626 (37%) as assistance grants had an increase of $20,651 as additional compared to the prior fiscal year due to the following : COVID-19 related fundings from the Federal Treasury ($9,019) and through the State allocation ($22,196) were received during the

• Taxes increased by $178,845 (87%). The largest increase in taxes fiscal year. These funds were spent to provide rental assistance is transient occupancy taxes (TOT) with an increase of $147,260 to eligible families impacted by the COVID-19 pandemic. Federal (494%) as compared to the prior fiscal year. TOT is equal to 15% of rental assistance and administrative funding for the Housing room sales derived from hotel, motel, and timeshare stays of less Choice Voucher (HCV) , Mainstream and new Emergency than thirty days. TOT revenues in fiscal year 2022 is the highest Housing Voucher (EHV) Program had an increase of $9,425 amount received in City history and surpass the pre-pandemic to meet program needs as rental assistance per participant in levels. With the rollout of vaccines for the COVID-19 virus in 2021 the combined program increased 5.6% and residents assisted and strong pent-up demand for travel experiences, the Anaheim increased 2.8%. A combined total increase of $11,668 in HOME lodging market demonstrated a quick pace of recovery with 2E

CITY OF ANAHEIM

($1,532), Homeless Shelter ($3,981), Emergency Shelter ($4,097),

EXPENSES AND PROGRAM REVENUES -

and Homeless Housing, Assistance and Prevention ($2,058) were received to provide funding for operating the homeless GOVERNMENTAL ACTIVITIES shelters and affordable housing. Offsetting by these increases is

$180 a decrease of $20,320 of the CARES allocation from the State in the prior fiscal year and a reduction of $1,300 in CDBG funding

~ $ 120 due to lower spending. 0

• Capital grants and contributions decreased by $6,286 (17%). The $60 decrease is primarily due to a net decrease of$5,753 in capital asset contributions from developers primarily in public right-of-way $0 _I and Park development in the prior fiscal year. Contributions from property owners for the Platinum Triangle project decreased by

$3,642 and reimbursement from the State for the Avon Dakota Housing development project had a decrease of $1,053. Partially offsetting the decreases is a one-time grant of $5,500 provided by e Program Revenue e Program Expenses the State for the acquisition of a site for the purpose of creating affordable housing opportunities for persons experiencing homelessness. Governmental activities expenses decreased by $30,008 (5%) as compared to the prior fiscal year.

• Unrestricted investment had a loss of $9,228 primarily due to unrealized investment loss at fiscal year end . Key elements of the change are as follows:

• Governmental activities net transfer in increased by $8,786 (206%)

• Pension and OPEB expenses both have significant decreases as mainly due to lesser amount transferred to the business-type compared to prior fiscal year mainly attributable to large amounts activities. A decrease of $14,152 transferred to the Convention , of favorable amortization being recognized from the deferred Sports and Entertainment Venues to subsidize the Fund due to items related to the Pension and OPEB Plans. The decreases are revenue shortfall impacted by COVID-19 pandemic shutdown primarily resulting from the difference between projected and

($6,500) and for debt services ($7,652) in the prior fiscal year, offset actual investment earnings. Total pension expenses allocated to by a combined decrease of $1,664 transfer in from the Electric governmental activities were $77,681 and OPEB expenses were Utility ($1,428) and Sanitation Utility ($236) . The transfer is equal to $6,218 lower than prior fiscal year.

the maximum of 4% current fiscal year total operating revenues

• The decrease in General government expenses of $4,997 (20%)

adjusted by the true-up of prior fiscal year transfer, a one-time is primarily due to a decrease of $6,569 in pension and OPEB transfer out in the amount of $1,251 to the Electric Utility for the expenses, offset by an increase of $1,572 in operating costs primarily construction cost of electric facilities in the Platinum Triangle due to post-implementation support for the Permit System.

project, and a one-time transfer out to the Water Utility in the amount of $1,591 for the transfer of land in the prior fiscal year.

• The decrease in Public safety expenses of $58,717 (21%) is mainly attributable to decreases in Pension and OPEB expenses of

$60,998. Other than the decreases in pension and OPEB expenses, Fire Safety had a decrease of $4,192 in operating expenses primarily due to decreases of$4,110 in COVID-19 related expenses in the prior fiscal year; contracted ambulance expense had a decrease of $2,532 due to the in-house ambulance program being implemented; partially offset by an increase of $2,753 in full-time overtime since overtime labor costs were utilized to backfill position vacancies.

Police Safety operating expenses increased by $6,473 primarily due 2,

CITY OF ANAHEIM to an increase of $7,349 in full-time overtime to meet increased REVENUES BY SOURCE - BUSINESS-TYPE ACTIVITIES demand for police services following the re-opening of the Anaheim Resort. This increase in full-time overtime partially offset Capi tal grants and Contributions the decrease in full-time labor as more overtime was utilized to 5% Unrestricted investment losses backfill vacant positions. -1 %

• The increase in Housing & Community Development expenses of

$27,298 (22%) is mainly due to an increase of $19,208 in expenses related to emergency rental assistance provided to eligible families in need; rental assistance for Housing Choice Vouchers (HCV), Mainstream and new Emergency Housing Voucher (EHV}

program expenses increased $7,871 due to higher program rents, and assistance per participant/household and initial leasing of EHV. Charges for service 96%

• The decrease in Economic Development expenses of $2,122 (22%)

is due to a one-time accrued expense for distribution of land sales May not sum to 100% due to roundi ng proceeds of $1,196 to CDBG in the prior fiscal year. Business-type activities increased the City's net position by $67,840.

• The decrease in Community Services expenses of $1,174 (3%) is Key elements of this change are as follows:

mainly due to a decrease in pension and OPEB expenses of $3,988 Charges for services of 668,061 increased by $57,106 (9%} due to the partially offset by an increase of $1,380 in part-time overtime followings:

and $718 in professional services due to increased payments to instructors and services due to the Community Services facilities

• The increase of $14,552 (3%) in Electric Utilities charges for and Classes being reopened to the public. services is primarily attributable to the following: a) Retail sales of electricity totaled $347,824 increased by $19,384 (6%}. This increase

• The increase in Convention , Sports & Entertainment expenses of is due to shelter at home restrictions being removed, with hotels,

$15,808 (196%) is primarily due to increased payment of $14,218 to theme parks, and other entertainment venues resuming normal Visit Anaheim. The payment is equal to 75% of the ATID revenues. operations for most of the fiscal year. b) Wholesales totaled $20,640

• The decrease in Public Works expenses of $4,298 (7%) is primarily and had a decrease of $6,646 (24%). As more businesses resumed attributable to decreases of $6,535 in pension and OPEB expenses; a normal hours of operations, the demand for retail energy increased decrease of $4,754 in one-time payment to Anaheim Transportation resulting in more energy being sold to the retail sector instead of Network (ATN) in the prior fisca l year for acquisition and operation the wholesale market. c) Rate Stabilization Account (RSA} revenue of buses for the Anaheim Resort. Partially offset by an increase of of $40,000 increased by $5,000. Additional information about the

$3,616 in depreciation expense as new assets were placed in service. RSA can be found in note l of the notes to the financial statement on page 69 of this report.

• The increase in interest on long-term debt of $1,566 (5%) is primarily due to interest expense for the 2021 Working Capital Bonds issued

• The increase of $5,888 (6%} in Water Utilities charges for services in June 2021. included an increase of $7,212 (8%) in retail sales of water, net of uncollectible amounts, reflecting both an increase in customer rates and an increase in customer demands due to warmer temperatures and lack of precipitation. There was no Rate Stabilization Account (RSA) revenue recognized in th is f iscal year.

$1 ,670 in RSA was recognized in the prior fiscal year. Addit ional information about the RSA can be found in note 1 of the notes to the financial statement on page 69 of this report.

2E

CITY OF ANAHEIM

• The increase of $5,092 (7%) in Sanitation Utility charges for services EXPENSES AND PROGRAM REVENUES -

includes an increase of $4,777 in solid waste and collection fees reflecting an 8.5% rate increase during the fiscal year. GOVERNMENTAL ACTIVITIES

• The increase of $3,731 (53%) in Golf Courses charges for services $600 is due to increases in numbers of round played and average green fees, and increases in concession revenues. The increase

~ $400 in golf course revenues is due to the Golf Courses resuming 0 normal operation for the entire fiscal year following the COVID-19 pandemic closure, and partially due to the improvements and ~ $200 renovations to the golf courses that provide customers a better product. $0

• The increase of $27,882 (638%) in the Convention, Sports and Entertainment Venues Fund is due to the Convention Center reopening and returning to normal operation the entire fiscal year.

• The decrease of $39 (100%) in ARTIC Management had no significant change to note.

• Revenues

• Expenses Capital grants and contribution had an increase of $21,612 (222%)

primarily due to the following: Total expenses of $612,224 increased $11,362 (2%). Key elements of the

• Water Utility had an increase of $23,707 primarily due to capital changes are due to the following:

contribution for the PFAS Treatment Facilities.

• The increase in Electric Utility expenses of $11,811 (3%) is due to the

• Electric Utility had a decrease of $1,991. There is no significant following: a) power costs increased by $20,426 (8%). The increase change to note. is primarily due to an increase of $31,037 resulting from higher demand for electricity in the retail sector, coupled with $14,978 Unrestricted investment had an investment loss of $6,907 primarily due spending in providing major maintenance to our Canyon and to unrealized investment losses at the end of the fiscal year. Magnolia generating stations. These increases were partially offset Business-type activities net transfer out increased by $8,786 (206%) as by a net reduction of $22,931 associated with the lntermountain explained in the net transfer in the governmental activities. There were Power Plant operating at minimum capacity as a result of coal no other significant changes to note. supply shortages; b) depreciation expense had an increase of$2,341 (5%) with new capital assets being placed in service; and c) partially offsetting the increases is a decrease of $9,522 in pension expense and a decrease of $1,286 in OPEB expense as previously explained in the governmental activities.

• The decrease in Water Utility expenses of $1,513 (2%) is due to the following: a) a combined decrease of $3,504 in pension and OPEB expenses as previously explained; b) the amount of overhead capitalized increased by $4,515 as a result of increased capital spending; c) partially offsetting these decreases is an increase of $2,079 (4%) in purchased water, treatment and pumping costs; the Water Utility changed its water supply mixture from primarily cheaper water pumped from local groundwater through the Orange County Water District (OCWD) to primarily more expensive imported water through the Metropolitan Water District

CITY OF ANAHEIM of Southern California (MWD) due to elevated PFAS in the local

• Committed fund balance totaled $3,943 (1%), had a decrease of groundwater; one-time expenses of $2,411 for the PFAS feasibility $144; study, and an increase of $1,204 in depreciation expense due to

• Unassigned fund balance totaled $39,282 (7%) had an increase of new capital assets being placed in service.

$34,453

• The decrease in Sanitation Utility expenses of $1,836 (3%) is Governmental revenues totaled $743,221 increased by $196,134 while primarily due to a combined decrease of $1,811 in pension and expenditures were $650,534 and increased by $58,757. Information about OPEB expenses as previously explained.

the changes in fund balances, revenues and expenditures are provided

• The increase in Golf Courses expenses of $2,386 (39%) reflected in the following analysis of the General Fund, Housing Authority and higher operating costs along with an increase of 53% in golf nonmajor governmental funds, respectively.

course revenues. These increases include increases in contracted General Fund:

services, credit card fees, landscape maintenance, costs of merchandise, and costs of food and beverage. The General Fund is the general operating fund of the City. At June 30, 2022, the General Fund reported a total ending fund balance totaling

• The increase in Convention, Sports & Entertainment Venues $177,021 and had an increase of $40,894 consisting of the following expenses of $537 (1%) is due to the following: labor expenses changes:

had an increase of $3,514 and utility expenses had an increase of $1,568. These increases were primarily due to the Convention

• Nonspendable fund balance totaling $601 had an increase of $199 Center reopening for normal operation for the entire fiscal year consisting of an increase of $120 in inventory and $79 in prepaid.

following a year long closure due to the COVID-19 Pandemic. A

• Restricted fund balance totaling $10,030 had a decrease of $3,508 one-time expense of $1,272 was due to cost of issuance for the 2021 consisting of a decrease of $7,403 restricted for debt service for Convention Center Expansion refunding bonds. Offsetting these the 2021 working capital bonds capitalized interest. This amount increases is a combined decrease of $5,880 in pension ($5,456) and was transferred to the Municipal Facilities non major debt service OPEB ($424) expenses as previously explained. governmental fund during the fiscal year; a decrease of $610

• The decrease in ARTIC Management expenses of $23 (less than 1%) in claims and judgment of which $600 was transferred to the does not have significant change to note. Water Utility per the Measure N election result in November 2014. Offsetting the decreases is an increase of $5,189 in unspent FINANCIAL ANALYSIS OF THE CITY'S FUNDS homeless shelter and prevention grants provided by the State; an increase of $1,020 in various unspent restricted Fire and Community Governmental funds provide information on near-term inflows, outflows, Services resources.

and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned

• Assigned fund balance totaling $114,039 had an increase of $9,827.

fund balance may serve as a useful measure of a government's net The increase is primarily due to an increase of $10,000 being resources available for spending at the end of the fiscal year. assigned for future debt services.

At the end of the current fiscal year, the City's governmental funds

• Unassigned fund balance totaling $52,351 had an increase of reported total ending fund balances of $578,460, an increase of $101,171 $34,376 reflecting results from current year activities.

in comparison with the prior fiscal year. General Fund total revenues increased $181,413 (51%) as compared to the

• Nonspendable fund balance totaled $829 (less than 1%), had an prior fiscal year primarily attributable to the following:

increase of $231;

• Total taxes increased by $178,273 (87%). Taxes are the largest

• Restricted fund balance totaled $359,251 (62%), had an increase of revenue sources of the General Fund and they accounted for

$39,786; . $383,721 of the total General Fund revenues. During fiscal year 2022, transient occupancy taxes (TOT) increased by $146,877

• Assigned fund balance totaled $175,155 (30%), had an increase of (487%), property taxes increased by $4,332 (5%), sales and use

$26,815; taxes increased by $26,514 (34%); and other taxes increased 3(

CITY OF ANAHEIM by $550 (7%). The increases are primarily due to revenues

• An increase of $2,778 in capital outlay is due to the acquisition of returning to pre-pandemic levels following the re-opening of 9 ambulances totaling $1,495.

the Anaheim Resort, hotels, businesses and entertainment General Fund other financing sources decreased by $138,054 primarily venues. Key elements of the changes in taxes are discussed in the due to the issuances of the $138,755 Working Capital bonds and the $799 government-wide financial analysis of the governmental activities ambulance acquisition loan in the prior fiscal year, offset by the issuance on page 26 of this report.

of a $1,500 loan for additional ambulance acquisitions in the current fiscal

• Intergovernmental revenues increased by $3,020 (3%) primarily due year.

to a combined increase of $20,652 in Emergency Rental Assistance General Fund Transfers out increased by $73,753 (184%) including the provided by HUD and the State; an increase of $6,040 provided following increases:

by the State for homeless shelter and prevention purposes; an increase of $1,714 in waste disposal revenue sharing included $845

• An increase of $68,777 in transfers out to the Anaheim Resort being unavailable for revenue recognition in the prior fiscal year. Improvements Debt Service Fund. This increase is due to increases Partially offsetting the increases was $20,320 of CARES funding in Lease Payment Measurement Revenues (LPMR) following the from the State distribution and the one-time $5,338 in CARES re-opening of the Anaheim Resort. Additional information about funding from the County of Orange for food distribution, small LPMR can be found in note 10 on page 88 of the notes to the businesses assistance, vaccination, and other COVID-19 related financial statements of this report; activities in the prior fiscal year.

• An increase of $7,433 in transfer out to the Municipal Facilities

• Charges for services increased by $5,514 (20%) primarily due to an nonmajor debt service governmental fund for the 2021 working increase of $4,327 in police services provided to Disneyland and capital bonds capitalized interest balance.

other entertainment and special events as demand for police

• An increase of $13,000 in transfer out to the nonmajor capital services increased following the reopening of the Anaheim Resort.

project for Neighborhood projects ($10,000) and Fire Station 4 Paramedic transport revenue increased by $2,707 due to increased improvements ($3,000).

numbers of emergency transport, partially offset the increases by a decrease of $2,181 in strike team reimbursement due to fewer

• An increase of $5,740 in transfer out to the Municipal Facilities activities being provided during the fiscal year. Maintenance internal service fund for deferred maintenance projects.

• Use of money and property had a decrease of $4,357 (98%)

primarily from unrealized investment losses at fiscal year end.

• Partially offsetting these increases is a decrease of $14,152 in transfer out to the Convention, Sports and Entertainment Venues General Fund expenditures increased by $36,325 (10%) primarily due to enterprise Fund to subsidize the Fund with cash flow assistance the following:

($6,500) due to revenue losses resulting from the pandemic closure

• An increase of $20,153 in Housing and Community Development and for debt services ($7,652) in the prior fiscal year; and a decrease is primarily due to increases in COVID-19 related expenditures for in transfer out of $5,962 to the Employee Benefit Fund ($5,462) and emergency rental assistance, small business assistance, and other Information and Communication Services internal service fund community assistance as previously discussed. ($500) for COVID-19 related expenses in the prior fiscal year.

• An increase of $7,725 in Police is primarily due to increases in service Housing Authority demand, and an increase in overtime labor to backfill position The Housing Authority reported a fund balance totaling $85,660 at June vacancies as previously discussed. 30, 2022, and had a decrease of $1,541.

• An increase of $2,831 in Finance is primarily due to

• Restricted fund balance totaling $44,143 decreased by $7,177 post-implementation support of the Permit system. primarilyduetofundsspentforthelowincomemultifamilyhousing

• An increase of $2,892 in Community Services is due to Community development loans of $9,031; partially offsetting the decrease by an Services facilities and Sporting Classes being reopened for normal increase of $1,979 in unspent rental assistance.

operation.

31

CITY OF ANAHEIM

• Assigned fund balance for housing projects totaling $41,475 had an

• Restricted fund balance totaling $305,078 had an increase of increase of $5,635 primarily due to receipts from loans and residual $50,471. Of this increase, fund balance restricted for debt services receipts from ground leases. increased by $41,445 which included $36,211 for the Resort bonds resulting from the increases of LPMR (refer to note 10 on page 88 The Housing Authority revenues totaled $115,270 and had an increase of for discussion related to LPMR); an increase of $5,234 (capitalized

$7,556. The increase consists of the following:

interest account balance net of current year debt service

• Intergovernmental revenues increased by $8,372 primarily due payments) was restricted for the 2021 Working Capital Bonds debt to an increase of $9,425, net of $6,563 in prior year CARES Act service. Fund balance restricted for grant purposes increased funding, to meet program needs. by $6,721 related to unspent CDBG program income ($1,200) and for affordable housing purposes ($5,500); $3,407 increase

• Use of money and property had a decrease of $1,783 primarily due in fund balance restricted for Streets, roads and transportation to a decrease of $3,150 in unrealized investment loss at fiscal year improvement is primarily due to increase in ATI D funds; offsetting end, partially offset by an increase of $3,225 from the receipts of the increases by a decrease of $4,293 in fund balance restricted principal and interest loan payments and an increase of $2,226 for Economic development primarily due to a payment of $3,560 in residual receipts from ground leases (the ground leases are related to economic development project.

not accounted for in Lease Receivable. They do not have fixed scheduled payments and are dependent on residual receipts for

• Assigned fund balance totaling $19,641 had an increase of $11,353 the year.) primarily from a $10,000 transfer in from the General Fund for neighborhood improvements.

The Housing Authority expenditures increased by $17,205 (17%). This increase is primarily due to the following:

• Unassigned fund balance deficit totaling $13,069 had a decrease in deficit of $77. The deficit fund balance will be eliminated in future

• An increase of $7,871 in rental assistance expenditures in HCV and years by the receipts of grant expenditures. There is no other EHV as previously discussed.

significant changes to note

• An increase of $9,031 in low income multifamily housing Total nonmajor governmental funds revenues increased by $7,165 development loans totaling $9,031 were issued to three new (8%). The most significant factors of the changes are discussed in the projects.

government-wide financial analysis of the governmental-activities.

• A decrease of $626 in capital outlay related to a property purchased

• Charges for services increased by $19,396 (244%) attributable to in the prior fiscal year offsetting the above increases.

increases in ATID assessment revenues as previously discussed.

Net transfer in increased by $810 consists of the following:

• Intergovernmental revenues increased by $6.513 (14%) from a

• Transfer in of $2,451 federal HOME grant from the Grant nonmajor one-time $5,500 homeless affordable housing State grant; an special revenue for a housing development loan to the Miraflores increase of $4,100 in ESG and an increase of $1,500 in the HOME project. affordable housing related to the Midway project. These increases were partially offset by decreases in CDBG of $1,861 due to lower

• Transfer out of $1,260 to the General Fund for the purchase of the spending, and a decrease of $1,810 of the Urban Area Security City's Matrix/Midway right of way parcel to complete the Miraflores Initiative (UASI) Grant due to project timing.

multifamily parcel assemblage.

• Licenses, fees and permits decreased by $2,315 primarily due to the Nonmajor governmental funds one-time Jefferson Stadium Park development fees in the prior Nonmajor governmental funds reported fund balances totaled $315,779 fiscal year.

reflecting an increase of $61,818. The change consists of the following:

• Contribution from property owners included a one-time

• Nonspendable fund balance had an increase of $31. There is no contribution of $1,534 from developers for the Mello Roos projects significant change to note. in the Platinum Triangle, a decrease of $3,641 as compared to the prior fiscal year.

CITY OF ANAHEIM

• Use of money and property decreased by $12,888 (73%) primarily Proprietary funds provide the same type of information found in the from a gain on sale of land held for resale of $8,229 in the Long government-wide financial statements, but in more detail. The significant Range Property Management Fund in the prior fiscal year, and factors of the changes in fund net position of each proprietary fund are

$1,533 lowercollection of loan revenues; partially offset bya decrease discussed in the government-wide financial analysis of business-type of $1,325 in investment losses due to unrealized investment losses activities.

at fiscal year end.

• The Electric Utility net position increased by $40,611 (9%) in the Total nonmajor governmental funds expenditures increased by $5,227 current fiscal year.

(5%) due to the following:

• The Water Utility fund net position increased by $31,892 (15%) in the

• Increase of $14,218 is for the payment to Visit Anaheim which is current fiscal year.

equal to 7% of ATID, as previously discussed.

• The Sanitation fund net position increased by $6,530 (5%) in the

• Increase of $3,560 is for the payment from the Long Range current fiscal year.

Property Management Plan for distribution of the land sale

• The Golf Courses fund net position increased by $2,272 (42%) in the proceeds of the former Redevelopment Agency properties to the current fiscal year.

County of Orange.

• The Convention, Sports and Entertainment Venues fund net

• Increase of $2,058 in Interest charges primarily due to the interest position decreased by $14,180 (6%) in the current fiscal year.

payment of the 2021 Working Capital bonds issued in June 2021.

• The ARTIC Management fund net position increased by $1,824 (1%).

• Partially offsetting the above increases is a decrease of $4,754 in payments to Anaheim Transportation Network (ATN). The decrease is due to the City completing the final payment of the GENERAL FUND BUDGETARY HIGHLIGHTS grant agreement in support of ATN's acquisition of buses and the During the year, the original budget was amended to increase ATN's COVID-19 Recovery Plan in the prior fiscal year. appropriations by $55,618 (14%). The increase in appropriations was primarily the result of the carryover of prior year appropriations and

• Capital outlay decreased $9,084 primarily due to timing of projects.

amendments amounting to $45,708 and the reallocation ofappropriations Total non major governmental funds Other Financing sources and uses from other funds of $9,910. These amendments were to be funded from increased by $79,209 due to the following: savings in other programs of the General Fund during the year.

• Transfer in increased $86,696. The increase is primarily General Fund revenuesof$535,703weregreaterthan budgeted revenues attributable to an increase of $68,777 in LPMR; an increase of of $455,901 by $79,802 (18%), primarily due to stronger than anticipated

$7,132 of the capitalized interest from the General Fund and an performance of sales tax and transient occupancy taxes following the increase of $13,000 from the General Fund for the Fire Station 4 reopening of the Anaheim Resort, hotels and businesses.

capital improvement ($3,000) and neighborhood improvements General Fund expenditures were less than budgeted. Of the total

($10,000).

appropriations of $443,891, approximately 7%, or $30,457, went unspent.

• Transfer out increased by $7,487 is due to a transfer of $3.500 from Labor costs were below budget by $9,931. The favorable variance in the ESG to the General Fund for the Salvation Army homeless labor savings was mainly resulting from employee turnover and the shelter operation, and a transfer of $2,600 from the HOME grant time between an employee leaving and the recruitment of a new to the Housing Authority for affordable housing Midway project. employee. Housing and Community Development expenditures were below budget by $19,227 primarily due to unspent appropriations for

• The issuance of refunding bonds ($23,546), payment to refunded emergency rental assistance and homeless prevention assistance.

bond escrow agent ($23,348), and the cost of issuance ($198) were related to the refunding of the governmental portion of the 2021 Convention Center Expansion Refunding Bonds.

CITY OF ANAHEIM CAPITAL ASSETS AND DEBT ADMINISTRATION CAPITAL ASSETS (net of accumulated depreciation)

JUNE 30, 2022 AND 2021 Governmental Business-type Total Activities Activities Government 2022 2021 2022 2021 2022 2021 Land $ 694,224 $ 693,257 $ 93,331 $ 93,331 $ 787,555 $ 786,588 Construction in Progress 43,674 41,840 167,595 198,665 211,269 240,505 Building, structures, and improvements 218,505 223,705 658,187 675,060 876,692 898,765 Utility plant 1,270,801 1,182,845 1,270,801 1,182,845 Machinery and equipment 44,382 46,285 18,807 21,838 63,189 68,123 Right to use leased assets* 4,699 4,828 3,019 3,347 7,718 8,175 Infrastructure 453.525 454.861 453,525 454.861 Total $ 1.459.009 $ 1,464,776 $ 2,211,740 $ 2,175,086 $ 3,670,749 $ 3,639,862

• Restated 2021 Right to use leased assets due to implementation of GASB No. 87 Capital assets other projects. Completion of construction in progress totaled

$27,731 including completion of street improvements on Katella The City's investment in capital assets for its governmental and

~idening from Harbor to West ($2,536), East Street pavement business-type activities at June 30, 2022 amounted to $3,670,749 (net improvement from La Palma-91 Freeway ($952), Orangethorpe of accumulated depreciation). This investment in capital assets included Street from Lakeview to Imperial ($2,411), Torry Street {$2,504),

land, construction in progress, buildings, structures, right to use leased Lotus Street ($2,774), traffic signal synchronization on Anaheim

~ssets, and improvements, utility plant, machinery and equipment, and Boulevard ($991,) and on La Palma ($2,763). Play equipment on infrastructure. The total increase over the prior fiscal year was $30,887 Cottonwood Park ($144), and the remodel of the Ducks locker (less than 1%), of which governmental activities decreased by $5,767 {less room ($7,799).

than 1%) and business-type activities increased by $36,654 (2%).

• Machinery and equipment had a net increase of $3,069 including Governmental activities capital asset additions totaled $42,559, capital acquisitions of various vehicles, a fire truck and 9 ambulances asset transferred in from the business-type activities of $360, offset by totaled $2,409; office, technology and field equipment totaled current year depreciation of $48,513, and retirement of capital assets,

$3,138, offsetting by equipment retirement of $2,478.

net of accumulated depreciation of $173. Major capital asset activities during the current fiscal year include the following:

• Right to use leased equipment increased by$834forcurrentyear addition of computer leases.

• Land had an increase of $967 in right-of-way contributed by developers.

• Contributions of capital assets from various external sources included $11,919 of structural improvements in the Honda Center

• Construction in progress had an increase of $1,834 consisting of

$2,617 in land and infrastructure, and $129 in play equipment fo;

$29,704 in project additions, completion of $27,731 and cancellation parks.

of $139. The additions of works in progress include $18 059 of infrastructure construction, $369 in park developments, $459 in The increase in business-type activities is primarily due to increases in land development, $9,534 in structural improvements, and $1 274 the following:

in Enterprise Resource Planning system upgrade, and $9 in various 3L

CITY OF ANAHEIM

• The Electric Utility net increase of $11,128 (1%) includes capital capacity, as well as replacing and improving its distribution system asset additions of $59,375, and offset by $48,247 for the current in order to ensure the water supply continues to be safe, reliable, year in addition to accumulated depreciation. Construction in and sufficient to meet future demands. For the fiscal year ended progress decreased by $24,022 mainly due to $57,027 in additions June 30, 2022, the Water Utility ranked in the top national quartile of capital projects offset by work completed of $81,049. During for infrastructure reliability as measured by the number of main the fiscal year, the Electric Utility completed construction of the breaks per 100 miles of distribution piping.

undergrounding of the area of Euclid Avenue from Broadway

• The Sanitation Utility increase of $517 (less than 1%) is comprised to Crone and Euclid from Ball to Sallie Lane as part of the of capital asset additions of $3,802 and offset by the current year Undergrounding District 50; during the fiscal year, the Electric additions to accumulated depreciation of $2,920. Construction Utility also completed the following projects: the Platinum Triangle work in progress increased by $1,997 primarily due to additions Line extension which includes the areas west of Clementine of $3,264 of sanitary improvements on various city locations, Street to east of Freeway 5; Haster Street from Gene Autry Way offsetting by work completed on East Anaheim Boulevard to Cerritos Avenue; Clementine Street from Katella Avenue to

($908), cancellation of $5 in work in progress and $360 of assets 300' north of Kate Ila Avenue; Gene Autry Way from Anaheim Way transferred to the governmental activities.

to State College Boulevard; State College Boulevard from Gene Autry Way to Orangewood Avenue; Santa Cruz Street from Gene

• The Golf Courses increase of $1,336 (12%) is due to current year Autry Way to Orangewood Avenue; Orangewood Avenues from additions of $2,018 and works completed of $503. The assets Anaheim Way to east of State College Boulevard. Other major include $1,580 in land improvements to the golf courses, machinery projects such as the installation and replacement of aging direct and equipment acquisitions of $388, and $538 in improvement to buried cable; replacement of switches, breakers, poles, cable and the golf courses restroom, dining area and pro shop renovation.

conduit throughout the City also contributed to the increase. The additions are offset by current year additions to accumulated The Electric Utility also replaced approximately 4,153 street lights depreciation of $682.

with more efficient LED lights, and upgrades to the general plant

• The Convention, Sports and Entertainment Venues decrease assets to better serve our customers.

of $15,365 (3%) is primarily comprised of capital asset additions

• The Water Utility increase of $41,lll (10%) includes capital asset of $3,080 offset by the current year additions to accumulated additions of $55,699, offset by cancellation of a work in progress depreciation of $19,043 and $2 in retirement of capital assets, net of $1,148, and current year accumulated depreciation addition of of accumulated depreciation.

$13,440. Construction in progress decreased by $11,435 primarily

• The ARTIC Management decrease of $2,073 (1%) is mainly due to due to work in progress additions of $54,554 offset by works capital asset additions of $298 offset by current year addition to completed of $64,841, and cancellation of a capital project of accumulated depreciation.

$1,148 that was found not to be feasible under the current financial condition. Project completions include East End reliability Additional information on the City's Capital Assets can be found in notes Improvements and Linda Vista Complex Pumps replacement. The l and note 7 of the notes to the financial statements, on page 67 and Water Utility continues its capital infrastructure building program page 84 of this report.

by actively replacing aging mainlines, improving its storage 3!:

CITY OF ANAHEIM LONG-TERM LIABILITIES JUNE 30, 2022 AND 2021 Governmental Business-type Total Activities Activities Government 2022 2021 2022 2021 2022 2021 Long-term debts:

Interest payable $ 3,747 $ 3,669 $ 3,747 $ 3,669 Lease payable* $ 4,375 $ 4,828 2,997 3,337 7,372 8,165 Notes and loans payable from direct borrowing 21,473 16,466 2,402 6,366 23,875 22,832 Revenue bonds 666,167 684,157 1,304,522 1,173,008 1,970,689 1,857,165 Total 692,015 705,451 1,313,668 1,186,380 2,005,683 1,891,831 Other long-term liabilities:

Due to other governments 19,020 22,580 19,020 22,580 Self-insurance claim liability 58,519 59,119 58,519 59,119 Compensated absences 24,459 24,665 24,459 24,665 San Juan reclamation liability 4,942 5,411 4,942 5,411 Provision for decommissioning liability 87,779 80,889 87,779 80,889 Net OPEB liability 81,027 119,442 26,122 40,658 107,149 160,100 Net pension liability 408,413 655,410 101,693 179,436 510,106 834,846 Total 591,438 881,216 220,536 306,394 811974 1,187,610 Total long-term liabilities $ 1,283,453 $ 1,586,667 $ 1,534,204 $ 1,492,774 $ 2,817,657 $ 3,079,441

• Restated 2021 Lease payable due to the implementation of GASB No. 87 Long-term liabilities

• New debt issuances and the accretion accrued totaling $28,653 offsetting the above decreases and included the following: a)

At June 30, 2022, The City's outstanding long-term liabilities totaled The City issued 2021 Convention Center Expansion Refunding

$$2,817,657 decreased by $261,784 (9%) in which long-term debts Bonds in the principal amount of $260,250 at par, to refund the increased by $113,852, and other long-term liabilities decreased by outstanding 2014 bonds. Portion of the bonds was allocated to

$375,636.

governmental activities for public infrastructure construction. Net Long-term debts including revenue bonds, notes and loans payable, increase in principal of the refunding bonds is $2,351. b) The City lease payable, and interest payable due in more than one year totaled entered into a direct loan borrowing agreement, through a Master

$$2,005,683 at June 30, 2022. Key changes include the following: Agreement, in the amount of $1,500 to finance the acquisition of nine ambulances; and $6,500 to finance the acquisition of Long-term debts in Governmental activities totaled $$692,015, and technological equipment; c) an increase of $834 in lease payable decreased by $13,436 (2%).

for the new computer leases; d) an increase of $17,468 for the

• Principal payments of $19,866 on bonds, notes and lease payable, current year accrued accretion payable.

payment made on the accretion of capital appreciation bonds Long-term debt in the business-type activities totaled $$1,313,668, of $18,063, and the annual amortization of discounts/premium of increased by $127,288 (11%).

$4,160 decreased the long-term debt balances..

3

CITY OF ANAHEIM

• The increase is primarily due to the issuances of the following previously discussed, San Juan reclamation liability decreased by bonds: a) 2022 Electric Revenue Refunding Bonds Series A, Band $469 due to payment of $375, and a $93 adjustment of excess D in the total principal amount of $310,640 and at a premium funding to deferred inflow of resources related to regulated of $25,380 to partially refund the outstanding principal amount business activities; Decommissioning liabilities had a net increase of the 2012 Electric Revenue Bonds ($14,335), the 2017 Electric of $6,890 due to an increase in estimate liability of $11,070 Revenue Bonds ($181,210), and to provide financing of $125,000 for offsetting by current year payment of $4,180.

the electric system capital improvements, b) 2022 Water Revenue Additional information on the City's long-term liabilities can be found Refunding Bonds Series A, Band C in the total principal amount in notes 8, 10, 11, 12, 13 and 14 of the notes to the financial statements, on of $155,815 and at a premium of $9,234 to partially refund the pages85-112 of this report.

outstanding principal balance of the 2010 Water Revenue Bonds

($29,690). The 2015 Revenue Bonds ($39,065), the 2020 Water ECONOMIC FACTORS Revenue Bonds ($34,305) and to provide financing of $50,000 for the water system capital improvements. c) 2021 Convention Tourism plays a significant role in the economies of California, Orange Center Expansion Refund Bonds with a principal balance of CountyandtheCityof Anaheim (City).Anaheim has been able to compete

$226,704 at par (amount allocated to the business-type portion), to for and capture a significant portion of tourism revenues. Following the refund the outstanding principal balance of the 2014 Convention removal of a year-long restriction order due to the COVID-19 pandemic, Center Expansion Bonds with an outstanding principal balance pent-up demand from the pandemic has led tourism, especially in of $204,063, and d) issuance of the $177 golf equipment loan. The Orange County and Anaheim, to return to the 2019 levels. While TOT unamortized premium balances totaling $38,539 were adjusted continued to be affected by the COVID-19, Anaheim recovery is well to deferred charges on refunding bonds. underway and the outlook for increased TOT growth remains bright.

• Principal payments of $50,259 on bonds, notes and leases payable, Due to the large interest rate increases by the Federal Reserve, the

$9,214 for current year amortization of premium/discount, offset market rates of the City's securities also increased and correspondingly, by an increase of $78 for a long-term interest payable decrease the securities' prices declined. In the government-wide Statement of the increases from the above bond insurances. Activities, the City reported a total of $16,135 in Unrestricted investment losses resulting from the adjustment of unrealized investment losses at Other long-term liabilities include self-insurance, compensated June 30, 2022. Because of the City's sufficient treasury portfolio liquidity, absences, provision for decommissioning liability, net OPEB liability, and there will not be any of the unrealized investment losses realized due net pension liability totaling $$811,974 decreased by $375,636 at June 30, to securities being sold before maturity, At maturity, an unrealized loss 2022. Key changes include the following:

for a security will be eliminated.

• Other long-term liabilities in the governmental activities totaled For the 2023 fiscal year, the City appropriated $436,696 in estimated

$591,438 decreased by $289,778 (33%). Self-insurance claim liability, available resources of $511,980 for General Fund spending. This leaves based on actuarial valuation, decreased by $600, compensated

$75,284 in estimated available reserves, which is 17% of General Fund absences decreased by $206, Due to other government decreased appropriations. The City's long-standing policy is to maintain General Fund by $3,560 due to a payment was made, net pension liability, per reserves of at least 7% to 10% of annual appropriations.

plan actuarial valuation, decreased by $246,997 primarily due to the plan favorable difference between projected and actual The City annually reviews all of its fees as part of the budget adoption investment earnings; Net OPEB liability had a decrease of $38,415 process. Developer, construction, and other fees applicable to residents primarily due to plan favorable difference between projected and and developers doing business in the City are adjusted each year to reflect actual investment experience, difference between expected and recurring costs.

actual experience and offsetting an increase due to changes of California Senate Bill 100 (SB 100) signed into law in September 2018 and assumption.

adjusted the Renewable Portfolio Standard (RPS) that all California utilities

• Other long-term liabilities in the business-type activities totaled are required to reach. The new RPS mandate is that California utilities, at

$220,536 decreased by $85,858. Net OPEB liabilities decreased a minimum, must use renewal resources to serve 38.5% of their retail load by $14,536 and net pension liability decreased by $77,743, as by 2022, 50% by 2026, and 60% by 2030. SB 100 also set a state policy goal 3,

CITY OF ANAHEIM to have 100% of retail sales be served by carbon-free resources by 2045. treatment to eliminate or mitigate the PFAS levels found in the local The Electric Utility uses a number of strategies to mitigate potential cost groundwater.

impacts while striving to meet and/or exceed state energy targets.

REQUESTS FOR INFORMATION The Orange County Water District (OCWD) set the Basin Production This financial report is designed to provide a general overview of the Percentage (BPP) for all cities and water districts they serve at 77~ for City's finances for all those with an interest in the government's finances.

fiscal year 2022. The Water Utility's Water Rates, Rules, and Regulations Questions concerning any of the information provided in this rep~rt or provide for an automatic adjustment of its commodity adjustment requests for additional information should be addressed t~ the Office of when OCWD and Municipal Water District (MWD) increase or decrease the Finance Director, City of Anaheim, 200 South Anaheim Bouleva_rd, the cost per acre foot of water. Elevated water costs will continue until Suite 643, Anaheim, California, 92805. The City's Annual Comprehens_1ve the Water Utility, in partnership with OCWD, builds local groundwater Financial Report can also be found on the City's website at www.anahe1m.

net.

3E

Basic Financial Statements Anaheim, California L\ Basic Financial Statements

CITY OF ANAHEIM Statement of Net Position June 30, 2022 (In thousands)

Governmental Business-type Activities Activities Total ASSETS Current assets:

Cash and cash equivalents $ 126,592 $ 88,406 $ 214,998 Investments 337,311 138,965 476,276 Restricted cash and cash equivalents 78,945 54,391 133,336 Restricted Investments 36,989 68,750 105,739 Accounts receivable, net 36,333 92,346 128,679 Accrued interest receivable 1,581 1,843 3,424 Lease receivable, net 1,122 1,721 2,843 Internal balances, net 25,386 (25,386)

Due from other governments 51,248 51,248 Inventories 1,937 27,791 29,728 Land held for resale, net 21,327 21,327 Prepaid and other assets 1782 29950 31732 Total current assets 720553 478 777 1,199,330 Noncurrent assets:

Restricted cash and cash equivalents 17,625 168,899 186,524 Restricted investments 54,935 117,128 172,063 Prepaid and other assets 93,039 93,039 Unamortized prepaid bond insurance 854 586 1,440 Lease receivable, net 11,796 8,533 20,329 Notes receivable, net 74,700 74,700 Due from Successor Agency 5,000 5,000 Capital assets, net:

Nondepreciable 737,898 260,926 998,824 Depreciable 721111 1,950,814 2,671,925 Total noncurrent assets 1,623,919 2,599,925 4 223 844 Total assets 2 344472 3 078 702 5,423,174 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding bonds 25,972 15,210 41,182 Deferred OPEB related items 26,629 8,118 34,747 Deferred pension related items 90 512 22895 113 407 Total deferred outflows of resources 143 113 46 223 189,336 (Continued) 41

CITY OF ANAHEIM Statement of Net Position June 30, 2022 (In thousands)

Governmental Business-type Activities Activities Total LIABILITIES Current liabilities:

Accounts payable $ 39,906 $ 93,243 $ 133,149 Wages payable 12,339 2,339 14,678 Interest payable 5,633 13,299 18,932 Lease payable 925 328 1,253 Deposits 9,860 11,695 21,555 Unearned revenues 13,965 342 14,307 Other long-term liabilities 32,028 32,028 Long-term debts 39408 48 533 87941 Total current liabilities 154 064 169 779 323 843 Noncurrent liabilities:

Interest payable 3,747 3,747 Lease payable 3,450 2,669 6,119 Other long-term liabilities 69,970 92,721 162,691 Long-term debts 648,232 1,258,391 1,906,623 Net OPEB liability 81,027 26,122 107,149 Net pension liability 408 413 101693 510,106 Total noncurrent liabilities 1211092 1485 343 2,696,435 Total liabilities 1,365,156 1,655,122 3,020,278 DEFERRED INFLOWS OF RESOURCES Deferred item related to leases 12,706 10,166 22,872 Deferred Regulatory credits 105,653 105,653 Deferred Regulated business activities 15,703 15,703 Deferred item on refunding bonds 13,728 13,728 Deferred OPEB related items 51,214 18,470 69,684 Deferred pension related items 187 023 57 927 244 950 Total deferred inflows of resources 250 943 221647 472 590 NET POSITION Net investment in capital assets 1,147,895 1,091,868 2,239,763 Restricted for:

Debt services 4,098 35,029 39,127 Capital projects 93,640 37,943 131,583 Housing and Community development 117,889 117,889 Streets, roads and transportation improvement projects 47,670 47,670 Other purposes 14,146 8,372 22,518 Unrestricted (553,852} 74944 (478,908}

Total net position $ 871,486 $ 1.248,156 $ 2,119,642 The accompanying notes are an integral part of these financial statements.

4~

CITY OF ANAHEIM Statement of Activities Year Ended June 30, 2022 (In thousands)

Net (Expense} Revenue and Program Revenues Changes in Net Position Indirect Operating Capital Expenses Charges for Grants and Grants and Governmental Business-type Exgenses Allocation Services Contributions Contributions Activities Activities Total Functions/Programs Governmental activities:

General government $ 37,587 $ (17,169) $ 1,477 $ 59,600 $ 40,659 $ 40,659 Police 142,798 5,174 13,279 7,001 $ 80 (127,612) (127,612)

Fire & Rescue 78,980 536 23,338 277 670 (55,231) (55,231)

Housing & Community Development 149,235 474 13,033 153,638 5,990 22,952 22,952 Economic Development 3,615 191 2,867 (939) (939)

Planning & Building 21,383 1,036 11,198 1,046 (10,175) (10,175)

Public Works 56,343 23 20,846 24,022 7,819 (3,679) (3,679)

Community Services 37,716 831 3,153 1,687 3,612 (30,095) (30,095)

Public Utilities 2,075 (2,075) (2,075)

Convention, Sports & Entertainment 23,527 352 16,560 11,919 4,600 4,600 Interest on long-term debt 33,093 (33,093} (33,093}

Total governmental activities 586,352 (8,552) 105,751 247,271 30,090 (194,688} (194,688}

Business-type activities:

Electric Utility 385,003 4,895 448,286 3,584 $ 61,972 61,972 Water Utility 94,183 1,224 102,239 26,844 33,676 33,676 Sanitation Utility 63,583 603 74,574 603 177 11,168 11,168 Golf Courses 8,308 124 10,709 2,277 2,277 Convention, Sports and Entertainment Venues 50,070 1,706 32,253 460 (19,063) (19,063)

ARTIC Management 2 525 298 (2,227) (2,227)

Total business-type activities 603,672 8,552 668,061 603 31,363 87 803 87,803 Total government $ 1,190,024 $ $ 773,812 $ 247,874 $ 61.453 (194,688} 87803 (106,885}

General revenues:

Taxes:

Property taxes 94,554 94,554 Sales and use taxes 103,374 103,374 Transient occupancy taxes 177,057 177,057 Other taxes 9,592 9,592 Unrestricted investment loss (9,228) (6,907) (16,135)

Transfers 13 056 (13,056)

Total general revenues and transfers 388.405 (19,963) 368,442 Change in net position 193,717 67,840 261,557 Net position at beginning of year, as restated 677 769 1,180,316 1,858,085 Net position at end of year $ 871.486 $ 1,248,156 $ 2,119,642 The accompanying notes are an integral part of these financial statements. 42

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CITY OF ANAHEIM Balance Sheet Governmental Funds June 30, 2022 (In thousands)

Nonmajor Total Housing Governmental Governmental General Authority Funds Funds ASSETS Cash and cash equivalents $ 46,447 $ 18,542 $ 40,975 $ 105,964 Investments 129,910 48,166 105,743 283,819 Restricted cash and cash equivalents 6,150 5,805 78,115 90,070 Restricted investments 12,059 79,865 91,924 Accounts receivable, net 31,261 83 2,489 33,833 Accrued interest receivable 406 312 647 1,365 Due from other funds 7,301 8,558 11,409 27,268 Due from other governments 25,743 934 24,571 51,248 Inventories 355 355 Land held for resale, net 6,032 15,295 21,327 Prepaid and other assets 246 42 186 474 Due from Successor Agency 5,000 5,000 Lease receivable 3,066 370 9,482 12,918 Notes receivable, net 8,062 49,863 16,775 74,700 Total assets $ 271,006 $ 138,707 $ 390,552 $ 800,265 LIABILITIES Accounts payable $ 17,161 $ 1,557 $ 11,172 $ 29,890 Wages payable 6,573 157 290 7,020 Deposits 8,181 206 1,473 9,860 bue to other funds 40,766 12,542 53,308 Unearned revenue 9,672 6 1,856 11,534 Total liabilities 82,353 1,926 27,333 111,612 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 7,973 894 16,325 25,192 Deferred item related to leases 3,002 364 9,340 12,706 Unavailable resources- long-term notes and loans 657 49,863 21,775 72,295 Total deferred inflows of resources 11,632 51,121 47,440 110,193 (Continued)

CITY OF ANAHEIM Balance Sheet Governmental Funds June 30, 2022 (In thousands)

Nonmajor Total Housing Governmental Governmental General Authorit:{ Funds Funds FUND BALANCES:

Nonspendable related to inventory, prepaid and other assets 601 42 186 829 Restricted:

Anaheim Resort maintenance and improvement 6,441 6,441 Capital projects 825 3,811 4,636 Claims and judgments 2,996 2,996

• Economic development projects 21,552 21,552 Debt services 120,970 120,970 Development impact projects 92,108 92,108 Grant purposes 6,209 8,973 15,182 Homebuyer assistance programs 2,078 12,913 14,991 Low and moderate income housing 35,637 35,637 Rental assistance 6,428 6,428 Streets, roads and transportation improvement projects 38,310 38,310 Committed for neighborhood and community projects 3,943 3,943 Assigned:

Capital projects 18,305 18,305 Debt service 10,000 1,238 11,238 Housing projects 41,475 41,475 Other purposes 104,039 98 104,137 Unassigned 52,351 (13,069) 39,282 Total fund balances 177,021 85,660 315,779 578,460 Total liabilities, deferred inflows of resources, and fund balances $ 271,006 $ 138,707 $ 390,552 $ 800,265 The accompanying notes are an integral part of these financial statements.

4E

CITY OF ANAHEIM Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2022 (In thousands)

Total fund balances - governmental funds $ 578,460 Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in the operation of governmental funds are not current financial resources and, therefore, are not reported in the funds. These assets consist of:

Land $ 694,224 Construction in progress 41,929 Buildings, structures and improvements 428,416 Machinery and equipment 73,412 Infrastructure 976,828 Rights to use leased assets 2,979 Accumulated depreciation (789,218)

Total capital assets, net 1,428,570 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the funds. 97,487 Unamortized prepaid bond insurance ($854) and deferred charge on bonds ($25,972) are not current financial resources, and, therefore, are not reported in the funds.

Unamortized prepaid bond insurance $ 854 Deferred loss on refunding bonds 3,825 Deferred future interest on partial defeasance of capital appreciation bonds 22147 26,826 Internal service funds are used by management to charge the costs of certain activities, such as insurance, employee benefits, and fleet services, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 26,111 Compensated absences, not otherwise included in the internal service funds, are not due and payable in the current period and, therefore, are not reported in the funds. (707)

Certain liabilities are not due and payable in the current period, and therefore, are not reported in the funds (19,020)

Effects of net pension liability and other post-employment benefits {OPES) liability are not due and payable in the current period, and therefore, are not reported in the funds.

Deferred outflows of resources $ 109,751 Net OPEB liability (75,347)

Net pension liability (388,136)

Deferred inflows of resources (222 916) (576,648)

Long-term liabilities of governmental funds, including bonds {$666,167), notes and loan payable ($14,921), lease payable

{$2,915) and accrued interest payable {$5,590) are not due and payable in the current period, and, therefore, are not reported in the funds. (689,593)

Net position of governmental activities $ 871486 The accompanying notes are an integral part of these financial statements.

CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2022 (In thousands)

Nonmajor Total Housing Governmental Governmental General Authori!Y Funds Funds Revenues:

Property taxes $ 94,554 $ 94,554 Sales and use taxes 103,421 103,421 Transient occupancy taxes 177,057 177,057 Other taxes 8,689 8,689 Licenses, fees and permits 20,341 $ 31 $ 6,088 26,460 Intergovernmental revenues 94,500 106,343 51,953 252,796 Charges for services 32,763 27,346 60,109 Fines, forfeits and penalties 3,257 3,257 Use of money and property 92 7,817 4,861 12,770 Lease revenues 617 145 433 1,195 Others 412 934 33 1,379 contribution from property owners 1534 l 5J4 Total revenues 535 703 115 270 92 248 743 221 Expenditures:

Current:

City Council 753 753 City Administration 12,158 12,158 City Attorney 7,606 91 7,697 City Clerk 1,240 5 1,245 Human Resources 2,034 2,034 Finance 9,009 31 9,040 Police 165,518 4,404 169,922 Fire & Rescue 91,064 246 91,310 Housing & Community Development 30,912 117,424 11,255 159,591 Economic Development 1,645 5,980 7,625 Planning & Building 23,291 1,304 24,595 Public Works 24,415 12,266 36,681 Community Services 34,998 1,243 36,241 Public Utilities 2,121 2,121 Convention, Sports & Entertainment 472 16,399 16,871 Capital outlay 3,922 197 18,199 22,318 Debt service:

Principal retirement 172 18,460 18,632 Interest charges 602 31,098 31,200 Total expenditures 411932 117 621 120 981 650 534 Excess (deficiency) of revenues over (under) expenditures 123 771 {2 351! {28 733! 92 687 Other financing sources (uses):

Transfers in 29,386 2,557 102,337 134,280 Transfers out (113,763) (1,747) (11,786) (127,296)

Issuance of refunding bonds 23,546 23,546 Issuance of loan payable 1,500 1,500 Redemption of bonds (23,348) {23,348)

Bonds issuance costs (198! (198}

Total other financing sources (82877) 810 90 551 8484 Net change in fund balances 40,894 (1,541) 61,818 101,171 Fund balances at beginning of year 136 127 87 201 253 961 477 289 Fund balances at end of year $ 177,021 $ 85 660 $ 315 779 $ 578,460 The accompanying notes ore an integral part of these financial statements, 4f

CITY OF ANAHEIM Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2022 (In thousands)

Net change in fund balances - total governmental funds $ 101,171 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlay as expenditures. However, in the Statement of Activities the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation

($43,479) exceeded capital outlay ($22,318) in the current period. {21,161)

Transfer of capital assets from proprietary fund to governmental fund does not provide current financial resources and are not reported as transfer in the funds. 360 The net effect of other miscellaneous transactions involving capital assets (i.e., sales, trade-in, retirements and contributions} is to increase net position. 14,515 Certain revenues in the Statement of Activities do not provide current financial resources and therefore, are not reported as revenues in the governmental funds (Charges for services $4,102; Operating Grants $916, Lease revenues $204). 5,222 Collections of notes and long-term receivables provide current financial resources to governmental funds but reduce receivables in the Statement of Net Position. {2,598)

Loan disbursements in the governmental funds use current financial resources but increase receivables in the Statement of Net Position. 9,141 Accrued interest expense ($1,204} and certain expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. {1,251)

Proceeds from issuance of long-term debt (Bonds payable $23,546, Loan payable $1,500} provide current financial resources to governmental funds, but the issuance of debt increases long-term liabilities ($25,046} and Prepaid bond insurance ($64) in the Statement of Net Position. {24,982)

Defeasance of bonds uses current financial resources but decreases long-term liabilities in the Statement of Net pisition 23,348 Payments of principal on long-term debt ($18,632} and other long-term liabilities ($3,560} use current financial resources in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position. 22,192 Net effect of accrued net pension liability and net OPEB liability and the related deferred outflows and deferred inflows of resources are not reported as expenditures in the funds. 67,840 Internal service funds are used by management to charge the costs of certain activities, such as insurance, employee benefits, and fleet services, to individual fun_ds. The net expense of the internal service funds is reported with governmental activities. (80}

Change in net position of governmental activities $ 193,717 The accompanying notes are an integral part of these financial statements.

CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - General Fund Vear Ended June 30, 2022 (In thousands)

Original Final Actual Budgeted Budgeted on Budgetary Variance with Amounts Amounts Basjs Final Budget Revenues:

Property taxes $ 93,698 $ 93,698 $ 94,554 $ 856 Sales and use taxes 82,882 82,882 103,421 20,539 Transient occupancy taxes 107,922 107,922 177,057 69,135 Other taxes 7,403 7,403 8,689 1,286 Licenses, fees and permits 18,464 18,464 20,341 1,877 Intergovernmental revenues 58,699 105,048 94,500 (10,548)

Charges for services 33,621 33,621 32,763 (858)

Fines, forfeits and penalties 2,725 2,725 3,257 532 Use of money and property 3,522 2,905 92 (2,813)

Lease revenues 617 617 Other 616 616 412 (204)

Total revenues 409 552 455 901 535 703 79,802 Expenditures:

City Council 872 872 753 (119)

City Administration 13,840 13,840 12,207 (1,633)

City Attorney 7,613 7,623 7,623 City Clerk 1,253 1,248 1,246 (2)

Human Resources 2,315 2,315 2,034 (281)

Finance 6,485 9,627 9,627 Police 169,665 169,775 165,730 (4,045)

Fire & Rescue 88,938 93,690 93,690 Housing & Community Development 9,908 50,139 30,912 (19,227)

Economic Development 3,701 1,672 (2,029)

Planning & Building 23,336 23,395 23,395 Public Works 23,573 26,613 26,613 Community Services 37,418 37,996 35,339 (2,657)

Public Utilities 2,210 2,210 2,121 (89)

Convention, Sports and Entertainment 847 847 472 (3751 Total expenditures 388 273 443 891 413 434 (30,457}

Excess of revenues over expenditures 21279 12 010 122,269 110,259 Other financing sources (uses):

Transfers in 26,636 26,636 29,386 2,750 Transfers out (63,215) (55,692) (113,763) (58,071)

Issuance of loan payable 1500 1500 Total other financing sources (uses) (36,5791 (27,556} '82,877} (55,321}

Net change in fund balance (15,300) (15,546) 39,392 54,938 Fund balance at beginning of year 136,127 136127 136127 Fund balance at end of year $ 120,827 $ 120.581 175,519 $ 54,938 Adjustment to reconcile to GAAP:

Encumbrance 1,228 Payment of interfund loan 180 Prepaid maintenance 94 Ending fund balance - GAAP basis $ 177,021 The accompanying notes are an integral part of these financial statements.

SC

CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - Housing Authority Vear Ended June 30, 2022 (In thousands}

Original Final Actual Budgeted Budgeted on Budgetary Variance with Amounts Amounts Basis Final Budget Revenues:

Licenses, fees and permits $ 31 $ 31 Intergovern menta I revenues $ 110,821 $ 116,447 106,343 (10,104)

Use of money and property 4,038 3,748 7,257 3,509 Lease revenues 145 145 Other 934 934 Total revenues 114,859 120,340 114,710 (5,630)

Expenditures:

Housing & Community Development 139,952 164,900 116,721 (48,179)

Total expenditures 139,952 164,900 116,721 (48,179)

Excess (deficiency) of revenues over (under) expenditures (25,093) (44,560) (2,011) 42,549 Other financing (uses):

Transfers in 5,647 2,557 (3,090)

Transfers out (332) (1,592) (1,747) (155)

Total other financing uses (332) 4,055 810 (3,245)

Net change in fund balance (25,425) (40,505) (1,201) 39,304 Fund balance at beginning of year 87,201 87,201 87,201 Fund balance at end of year $ 61,776 $ 46,696 86,000 $ 39,304 Adjustments to reconcile to GAAP:

Encumbrance 126 Use of park fee credit 456 Use of transportation fee credit 104 Transportation fee credit reimbursed by development loan (1,026)

Ending fund balance - GAAP basis $ 85,660 The accompanying notes are an integral part of these financial statements.

51

CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2022 (In thousands)

Business-~ee Activities - Entererise Funds Convention, Governmental Sports and Activities -

Electric Water Sanitation Golf Entertainment ARTIC Internal Utili~ Utilitll Utili~ Courses Venues Management Total Service Funds ASSETS Current assets:

Cash and cash equivalents $ 41,841 $ 21,975 $ 13,659 $ 718 $ 10,213 $ 88,406 $ 20,628 Investments 53,094 23,289 35,419 680 26,483 138,965 53,492 Restricted cash and cash equivalents 34,399 8,222 4,140 7,630 54,391 Restricted investments 54,057 6,211 8,482 68,750 Accounts receivable, net 52,251 24,201 10,128 85 5,681 92,346 2,500 Accrued interest receivable 1,163 242 275 5 158 1,843 216 lnterfund receivable 595 595 Inventories 26,758 889 144 27,791 1,582 Prepaid and other assets 28,135 1,805 10 29,950 1,308 Lease receivable 341 1380 1721 Total current assets 292 634 86834 72103 1632 51555 504,758 79726 Noncurrent assets:

Restricted cash and cash equivalents, less current portion 132,421 31,370 3,668 1,440 168,899 6,500 Restricted investments, less current portion 108,168 8,960 117,128 lnterfund receivable, less current portion 786 786 33,031 Lease receivable, less current portion 4,965 3,568 8,533 Prepaid and other assets 93,039 586 93,625 Capital assets:

Land 34,243 2,970 316 1,949 21,330 $ 32,523 93,331 Buildings, structures and improvements 134,968 21,582 710,803 171,082 1,038,435 11,309 Utility plant 1,583,858 572,990 2,156,848 Machinery and equipment 8,399 1,570 40,166 2,862 52,997 71,857 Rights to use leased land 3,200 3,200 Rights to use leased equipment 266 266 2,683 Construction in progress 99346 54,1Q2 9109 15 4942 81 167,595 1745 Total capital assets 1,720,647 630,062 152,792 25,382 777,241 206,548 3,512,672 87,594 Less accumulated depreciation (693,299) {193 008) {36,152) {15,056) {345,966) (17,451) {1300 932) (57,155}

Capital assets, net 1,027 348 437 054 116 640 10,326 431275 189 097 2,211740 30439 Total noncurrent assets 1366727 468424 129,268 10326 436,869 189 097 2,600,711 69970 Total assets 1.659.361 555 258 201.371 11.958 488424 189 097 3105 469 149 696 DEFERRED OUTFLOWS OF RESOURCES:

Deferred charges on refunding bonds 1,866 4,543 8,801 15,210 Deferred OPEB related items 4,332 1,416 991 75 1,304 8,118 2,117 Deferred pension related items 12,492 4305 2482 171 3445 22,895 5,2Z3 Total deferred outflows of resources 18,690 10264 3 473 246 13 550 46 223 Z,390 (continued)

CITY OF ANAHEIM Statement of Net Position Proprietary Funds June 30, 2022 (In thousands)(continued)

Business-time Activiti!lS - Enteri:irise Funds Convention, Governmental Sports and Activities -

Electric Water Sanitation Golf Entertainment ARTIC Internal Utili~ Utili~ Utili~ Courses Venues Management Total Service LIABILITIES Current liabilities (payable from current assets}:

Accounts payable $ 53,363 $ 19,985 $ 4,870 $ 2,273 $ 1,952 $ 82,443 $ 10,016 Wages payable 848 388 181 9 605 2,031 5,319 Interest payable 3,461 3,461 43 Lease payable 264 64 328 886 Other long-term liabilities 31,321 Long-term debts 11,492 2,103 811 35 4,050 $ 2,000 20,491 1,251 Unearned revenues 342 342 2,431 Deposits 5,099 646 795 643 4,512 11,695 lnterfund payable 344 7301 7645 39 Total current liabilities (payable from current assets} 71066 23466 6 657 3024 22 223 2000 128 436 51306 Current liabilities (payable from restricted assets}:

Accounts payable 4,523 5,826 335 116 10,800 Wages payable 292 13 3 308 Interest payable 6,721 2,134 853 9,708 Arbitrage rebate liability 130 130 Long-term debts 24835 2642 262 28042 Total current liabilities (payable from restricted assets} 36 501 10602 1 766 119 48988 Total current liabilities 107 567 34068 8423 3024 22342 2000 177 424 51306 Noncurrent liabilities:

lnterfund payable, less current portion 688 688 Interest payable, less current portion 3,747 3,747 Lease payable, less current portion 2,658 11 2,669 574 Other long-term liabilities, less current portion 4,942 4,942 50,950 Long-term debts, less current portion 746,508 243,060 46,048 107 222,668 1,258,391 5,301 Net OPEB liability 13,395 4,937 3,251 188 4,351 26,122 5,680 Net pension liability 58,177 18,545 9,718 674 14,579 101,693 20,277 Provision for decommissioning liability 87779 87779 Total noncurrent liabilities 913 459 267 230 59017 980 241598 3 747 1466 031 82782 Total liabilities 1021 Q26 301298 67440 4004 263 940 5 747 1663 455 134088 DEFERRED INFLOWS OF RESOURCES Deferred item related to leases 5,279 4,887 10,166 Regulatory credits 103,227 2,426 105,653 Regulated business activities 15,703 15,703 Deferred item on refunding bonds 11,206 2,065 457 13,728 Deferred OPEB related items 9,444 3,352 2,338 185 3,151 18,470 4,455 Deferred pension related items 29 857 9 518 5019 346 13187 57927 10866 Total deferred inflows of resources lZ4 Zl6 1z 361 Z8l4 531 21225 221647 15 321 NET POSITION Net investment in capital assets 380,399 223,097 76,571 9,354 215,350 187,097 1,091,868 28,395 Restricted for:

Debt service 31,821 2,643 565 35,029 Capital projects 18,560 3,830 15,553 37,943 Other purposes 8,372 8,372 Unrestricted 43157 17 293 36901 (1685} 1459 (3 747} 933Z8 (20 718}

Total net position $ 482 309 $ 246,863 $ 129,590 $ 7669 $ 216,809 $ 183,350 1,266,590 $ 7,677 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (18 434}

Net position of business-type activities $ 1248156 The accompanying notes are an integral part of these financial statements.

5~

CITY OF ANAHEIM Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Vear Ended June 30, 2022 (In thousands)

Business-:b£pe Agivities - Enterprise Funds Convention, Governmental Sports and Activities -

Electric Water Sanitation Golf Entertainment ARTIC Internal Utili:b£ Utili:b£ U!ili:b£ Courses Venues Management Total Service Funds Operating revenues:

Sales of retail and wholesale electricity, net $ 408,949 $ 408,949 Transmission revenues 35,744 35,744 Sales of water, net $ 100,919 100,919 Solid waste collection fees $ 53,689 53,689 Wastewater fees 15,225 15,225 Street cleaning fees 3,169 3,169 Green fees and cart rentals $ 8,167 8,167 Facilities rental $ 27,161 27,161 Concession fees 2,075 2,944 5,019 Charges for services 90 90 $ 154,283 Lease revenues 376 1,481 1,857 Other 3 217 1320 2491 377 667 8072 221 Total operating revenues 448286 102,239 74574 10709 32253 668 061 154504 Operating expenses:

Cost of purchased power 271,293 271,293 Fuel and generation of power 399 399 Cost of purchased water 52,079 52,079 Treatment and pumping of water 5,157 5,157 Maintenance, operations and administration 46,052 16,141 60,018 7,737 23,068 $ 76 153,092 54,685 Insurance premiums and claims 23,676 Compensated absences and other benefits 75,966 Depreciation 48 24Z 13,440 2920 682 19,043 2,3Zl 86,Z03 5034 Total operating expenses 365,991 86,8lZ 62938 8,419 42,lll 2,44Z 568 Z23 159 361 Operating income (losses) 82,295 15422 11,636 2 290 (9,858) (2,44Zl 99,338 (4,85Zl Nonoperating income (expenses):

Intergovernmental revenues 603 603 Investment income (losses) (3,102) (1,048) (1,749) (12) (996) (6,907) (2,048)

Interest expense (21,598) (7,523) (1,476) (6) (8,218) (78) (38,899) (55)

Bond issuance costs (1,709) (870) (1,272) (3,851)

Gain (loss) from disposal of capital assets 12! 12! 59 Total nonoperating expenses (26409) 19 441! (2,622) (18) (10 488) (Z8) (49 056) (2M4l Income (losses) before contributions and transfers 55,886 5,981 9,014 2,272 (20,346) (2,525) 50,282 (6,901)

Capital contributions 3,584 26,844 177 460 298 31,363 Transfers in 1,422 613 128 5,706 4,051 11,920 5,740 Transfers out (20,281) (1,546) (2789) (24 616) (28)

Change in net position 40,611 31,892 6,530 2,272 (14,180) 1,824 68,949 (1,189)

Net position at beginning of year 441698 214971 123 060 539Z 230 989 181526 8866 Net position at end of year $ 482,309 $ 246 863 $ 129,590 $ 7,669 $ 216,809 $ 183,350 $ 7,677 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (1,109)

Change in net position of business-type activities $ 67,840 The accompanying notes are an integral part of these financial statements. Si

CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 (In thousands)

Business-!J1E!e Activities - Entemrise Funds Governmental Convention, Activities -

Sports& Internal Electric Water Sanitation Golf Entertainment ARTIC Service Utili!J1 Utili!ll Utili!ll Courses Venues Management Total Funds Cash flows from operating activities:

Receipts from customers and users $ 443,196 $ 102,184 $ 70,807 $ 11,206 $ 25,845 $ 653,238 Receipts from interfund services provided 2,144 351 38 2,533 $ 153,871 Receipts from leases 431 1,515 1,946 Payments to suppliers (251,794) (50,428) (49,822) (6,425) {8,268) $ (76) (366,813) (34,374)

Payment of decommissioning costs (4,180) (4,180)

Payments for salaries, wages and other benefits (48,471) (15,781) (8,655) (543) (16,495) (89,945) (93,454)

Payments for interfund services used (14,696) (6,141) (4,834) (219) (3,858) (29,748) (5,067)

Payments for insurance premiums and claims (21,975)

Other receipts 2673 2673 638 Net cash provided by (used for) operating activities 126 630 30 185 10207 4019 112611 1761 169 704 (3611 Cash flows from noncapital financing activities:

Receipt of interfund balances 571 571 22 Payment of interfund balances (344) (706) (1,050) (357)

Transfers in 171 613 51 835 5,740 Transfers out (20,281) (1,546) (2,789) (24,616) (28)

Operating grant receipts 603 603 Net cash provided by (used for) noncapital financing activities (19 539) 11277) (21861 (7061 51 (23 657) 5377 Cash flows from capital and related financing activities:

Proceeds from sale of capital assets 83 Capital contributions 2,429 10,998 13,427 Capital purchases (52,909) (50,687) (3,041) (1,816) {7,719) (116,172) (4,211)

Proceeds from issuance of loan 6,500 Proceeds from issuance of bonds 132,921 50,473 620 184,014 Costs of issuance (1,008) (387) (618) (2,013)

Principal payments on long-term debts (33,096) (5,375) (1,315) (28) (6,105) (4,000) (49,919) (lll Principal payment on leases (278) (62) (340) {1,223)

Interest payments (28,168) (8,169) (2,116) (6) (6,538) (44,997) (12)

Receipt of interfund balances for capital purposes 7,301 7,301 Transfer in for capital purpose 1,Z5l lZ8 5706 4QOO 11085 Net cash provided by (used for) capital and related financing activities 21142 (3147) (63441 (1912) 17 353) 2 386 1126 Cash flows from investing activities:

Purchase of investment securities (102,668) (9,953) (23,716) (700) (8,899) (145,936) (21,482)

Proceeds from sale and maturity of investment securities 75,896 24,296 13,506 17,484 131,182 22,353 Interest received 4326 1562 1032 3 701 7 624 1026 Net cash provided by (used for) investing activities /22 4461 15~05 /91781 (697) 9 286 (7 130) 18~7 Increase (decrease) in cash and cash equivalents 105 787 41666 (7 5011 704 672 (251 141303 8039 Cash and cash equivalents at beginning of the year 1oz 874 19 901 2/3968 18611 Z5 170 39J 19089 Cash and cash equivalents at end of the year $ 208,661 $ 61,567 $ 21467 $ 718 $ 19,283 $ 311,696 $ 27,128 (continued) 5!:

CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 (In thousands)

Business-t{ee Activities - Entererise Funds Convention, Governmental Sports & Activities -

Electric Water Sanitation Golf Entertainment ARTIC Internal Utilit[ Utilit[ Utilit[ Courses Venues Management Total Service Funds Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:

Operating income (loss) $ 82,295 $ 15,422 $ 11,636 $ 2,290 $ {9,858) $ {2,447) $ 99,338 $ (4,857)

Adjustment to reconcile operating income (loss) to net cash provided by (used for) operating activities:

Interest received from leases 82 95 177 Depreciation 48,247 13,440 2,920 682 19,043 2,371 86,703 5,034 Cancellation of construction in progress 1,148 1,148 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources:

Accounts receivable (478) (1,012) (1,061) ' (5) (4,975) (7,531) 1,937 Inventories (5,352) (681) (76) (6,109) (320)

Prepaid and other assets 20,306 20,306 532 Lease receivable 349 1,420 1,769 Accounts payable and other accrued liability (911) 4,464 (529) 817 1,192 5,033 1,491 Wages and benefits payable (11,260) (3,904) (2,764) (213) * (6,745) (24,886) (3,451)

Unearned revenues 39 39 126 Deposits (2,324) 114 5 524 9 (1,672)

Compensated absences and self-insurance liabilities (853)

Provision for decommissioning liabilities (4,180) (4,180)

Deferred inflow related to leases (376) (1,481) (1,857)

Regulatory credits 232 l:!.94 1426 Total adjustments 44335 l4,Z63 {1429} 1,729 8 59Z 2,3Zl Z0:366 4,496 Net cash provided by (used for) operating activities $ 126,630 $ 30,185 $ 10,207 $ 4,019 $ {1261) $ 176) $ 169 704 $ (361)

(Continued)

SE

CITY OF ANAHEIM Statement of Cash Flows Proprietary Funds Year Ended June 30, 2022 (In thousands)

Business-t)l'.ge Activities - Entergrise Funds Convention, Governmental Sports & Activities -

Electric Water Sanitation Golf Entertainment ARTIC Internal Utili!)I'. Utili!)I'. Utili!)I'. Courses Venues Management Total Service Funds Schedule of noncash operating, investing, capital and noncapital financing activities:

Increase (decrease) in fair value of investments $ (8,396) $ (2,537) $ (2,740) $ (20) $ (1,718) $ (15,411) $ (3,023)

Capital assets financed through leases 117 117 834 Capital contributions 1,155 579 177 460 $ 298 2,669 Refunded bond proceeds deposited in refunding bond escrow agent 202,399 114,092 224,823 541,314 Defeasance of outstanding revenue bond principal (195,545) (103,060) (204,063) (502,668)

Cost of issuance - underwriter discounts (701) (483) (1,261) (2,445)

Increase in account receivable related to capital contribution (15,267) (15,267)

Increase in Decommissioning liabilities 11,070 11,070 Decrease in Accrued long-term liabilities (94) (94)

Decrease in deferred inflow of resources - regulated business activity (10,976) (10,976)

Increase in accounts payable related to capital assets 5,311 4,433 219 85 153 10,201 532 Amortization of bond premium (discount), deferred outflow/inflow, net 6,930 950 613 30 8,523 Increase in accrued interest payable 315 304 1,710 78 2,407 Reconciliation of cash and cash equivalents:

Cash and cash equivalents $ 41.841 $ 21,975 $ 13,659 $ 718 $ 10,213 $ $ 88,406 $ 20,628 Restricted cash and cash equivalents, current portion 34,399 8,222 4,140 7,630 54,391 Restricted cash and cash equivalents, noncurrent portion 132121 31320 3,668 1440 168,899 6 500 Total cash and cash equivalents $ 208,661 $ 61567 $ 21,467 $ 718 $ 19,283 $ 311,696 $ 27,128 The accompanying notes are an integral part of these financial statements.

S'i

CITY OF ANAHEIM Statement of Fiduciary Net Position (Deficit)

Fiduciary Funds June 30, 2022 (In thousands)

Custodial Funds Successor Agency Private External Purpose Trust Investment Fund eools Others ASSETS Cash and cash equivalents $ 27,619 $ 1,122$ 3,356 Investments 2,908 3,479 Accrued interest receivable 36 23 Special assessment receivable 9 Notes receivable, net 861 Prepaid and other assets 409 Unamortized prepaid bond insurance 383 Lease receivable, net 7,633 Right to use lesed land 19,613 Accumulated amortization (729)

Total assets 55825 4053 6844 LIABILITIES Accounts payable 30 6 Wages payable 2 Interest payable 3,431 Long-term liabilities:

Other long term liabilities, current portion 1,992 Lease payable, current portion 382 Long-term debt, current portion 10,269 Other long term liabilities, less current potion 18,523 Lease payable, less current portion 18,788 Long term debt, less current portion 131,Q8Q Total liabilities 185,103 6 DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding bonds 293 Deferred item related to leases 7 523 Total deferred outflows of resources 781Q NET POSITION Restricted for individuals, organizations, and other governments 4,053 6,838 (Deficit) (137 094)

Total net position(deficit) $ (137,094) $ 4,053 $ 6,838 The accompanying notes are an integral part of these financial statements. SE

CITY OF ANAHEIM Statement of Changes in Fiduciary Net Position (Deficit)

Fiduciary Funds Year Ended June 30, 2022 (In thousands)

Successor Custodial Funds Agency Private External Purpose Trust Investment Fund Pools Others ADDITIONS Property tax increments $ 17,162 Special assessment collections from Community Facility Districts $ 3,218 Deposits to pooled investments $ 8,089 Lease revenues 375 Deposits 94 Donation collections 2 Miscellaneous receipts on behalf of inmates 3 Interest income 870 (97) 10 Total collections on behalf of other individuals, organizations and other governments 18,407 7,992 3,327 DEDUCTIONS Salaries and administration 210 63 Program expenses 1,064 Payments 1,732 Interest payments 5,472 Debt service payments - Community Facilities Districts 3,023 Distributions from pool investments 7,719 Total deductions 6,746 7,719 4,818 Change in net position 11,661 273 (1,491)

Net position (deficit) at beginning of year, as restated (148,755) 3,780 8,329 Net position (deficit) at end of year $ {137,094} $ 4,053 $ 6,838 The accompanying notes are an integral part of these financial statements.

{This page was intentionally left blank) 6(

CITY OF ANAHEIM City Council members, in separate session, serve as the governing board Notes to Financial Statements of the APFA. Financial activity of the APFA has been blended into the City's (Amounts in thousands) ACFR into various governmental and business-type activities and funds of the City as applicable.

NOTE 1 -

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES: Anaheim Housing and Public Improvement Authority (AHPIA), a joint The financial reporting entity power authority, was created by and between the City and the Anaheim Housing Authority as a vehicle to reduce local borrowing costs and promote As defined by U.S. generally accepted accounting principles (GAAP) that greater use of existing and new financial instruments and mechanisms.

are established by the Governmental Accounting Standards Board (GASB), Members of the City Council of the City serves as the members of the the financial reporting entity consists of the primary government, as well Board and Directors of the AH PIA. Financial activity of the AH PIA has been as its component units, which are legally separate organizations for which blended into the City'sACFR into various business-type activities and funds the elected officials of the primary government are financially accountable. of the City as applicable.

Financial accountability is defined as l) appointment of a voting majority of the component unit's board, and either a) the ability to impose will by The City is a participant in four joint ventures and jointly-owned properties the primary government, orb) the possibility that the component unit will (see note 18), which are not considered part of the financial reporting entity, provide a financial benefit to or impose a financial burden on the primary as the City does not have significant equity interests in the joint ventures government; and 2) the component unit is fiscally dependent on and there and jointly-owned properties.

is a potential for the component unit to provide specific financial benefit The City is a participant in the California Municipal Finance Authority to or impose financial burden on the primary government regardless of (CMFA), a non-profit Joint Power Authority created to strengthen local whether the component unit has a) a separately elected government communities by assisting with the financing of economic development board, b) a governing board appointed by a higher level of government, and charitable activities throughout the State of California. The CMFA or c) a jointly appointed board. acts as conduit issuer by assisting local governments, non-profits and The accompanying financial statements present the City of Anaheim (City), businesses with the issuance of taxable and tax-exempt financing aimed the primary government, and its component units. The financial data of at improving the quality of life in California. The City has no financial, the component units are included in the City's reporting entity because of budgeting and operational obligations and responsibilities of the CMFA.

the significance of their operational or financial relationships with the City. The CMFA is a jointly governed organization. The City has recorded assets and liabilities from the City's debt issuances through the CMFA in the The component units described below are each legally separate from the business-type activities and funds of the City as applicable (see note 10).

City, but are so intertwined with the City that they are, in substance, the same as the City. They are reported as part of and accountable to the City Basic financial statements and blended into the government-wide and fund financial statements. In accordance with GASB Statement No. 34Basic Financial Statements and Anaheim Housing Authority (Housing Authority) is a separate entity Management's Discussion and Analysis for State and Local Governments, primarily funded by the U.S. Department of Housing and Urban the basic financial statements include both government-wide and fund Development to administer funds received under the Federal Housing financial statements.

Assistance Payments program. City Council members, in separate session, The government-wide financial statements (Statement of Net Position serve as the governing board of the Housing Authority. All budgeting, and Statement of Activities) report on the City and its component units, accounting and administrative functions of the Housing Authority are excluding fiduciary activities. Governmental activities, which normally performed by the City. The financial activity of the Housing Authority has are supported by taxes and intergovernmental revenues, are reported been blended into the City's Annual Comprehensive Financial Report separately from business-type activities, which rely to a significant extent (ACFR) in the government-wide governmental activities and in the fund on fees and charges for support. All activities, both governmental and financial statements as the Housing Authority Special Revenue Fund. business-type, are reported in the government-wide financial statements Anaheim Public Financing Authority (APFA). a joint powers authority, was using the economic resources measurement focus and the accrual basis established as a vehicle to reduce local borrowing costs and promote of accounting, which includes long-term assets and receivables as well as greater use of existing and new financial instruments and mechanisms. long-term debt and liabilities. The government-wide financial statements 61

CITY OF ANAHEIM focus more on the sustainability of the City as an entity and the change directly benefit from goods, services or privileges provided by a particular in aggregate financial position resulting from the activities of the fiscal function or program and 2) grants and contributions that are restricted to period. meeting the operational or capital requirements of a particular function or program. Taxes, unrestricted investment income and other revenues not Generally, the effect of interfund activity has been removed from the identifiable with particular functions or programs are included as general government-wide financial statements, except for interfund services revenues. The general revenues support the net costs of the functions and provided and used. Net interfund activity and balances between programs not covered by program revenues.

governmental activities and business-type activities are shown as internal balances, net, in the government-wide financial statements. The "doubling Also, part of the basic financial statements are fund financial statements up" effect of internal service fund activity has been eliminated from the for governmental funds, proprietary funds and fiduciary funds, even government-wide financial statements with the expenses shown in the though the latter are excluded from the government-wide financial various functions and programs on the Statement of Activities. statements. The focus of the fund financial statements is on major funds, as defined by GASB Statement No. 34. Although this reporting model sets Further, certain eliminations are also made to transfers of resources forth minimum criteria for determination of major funds (a percentage between funds in the fund financial statements so that only the net of assets, deferred outflows of resources, liabilities, deferred inflows of amount of the transfers are shown in the governmental activities and resources, revenues, or expenditures/expenses of fund category and of the business-type activities columns.

governmental and enterprise funds combined), it also gives governments The government-wide Statement of Net Position reports all financial and the option of displaying other funds as major funds. Other non major funds, capital resources of the City (excluding fiduciary funds). It is displayed in as well as the internal service funds, are combined in a single column on a format of assets and deferred outflows of resources less liabilities and the fund financial statements.

• deferred inflows of resources equal net position, with the assets and The City reports the following major governmental funds:

liabilities shown in order of their relative liquidity. Net positions are required to be displayed in three components: 1) net investment in capital assets The General Fund is the City's primary operating fund. It accounts

2) restricted, and 3) unrestricted. Investment in capital assets represents for all financial resources of the general government, except those capital assets net of accumulated depreciation which is reduced by required to be accounted for in another fund.

outstanding balances of any bonds, notes or other borrowings that are The Housing Authority Special Revenue Fund accounts for the attributable to the acquisition, construction, or improvement of those providing of housing assistance to low and moderate-income families assets. Restricted net position is those with constraints placed on their in the Anaheim area. Financing is provided primarily from Federal use by either: 1) creditors (such as through debt covenants), granters, Section 8, U.S. Department of Housing and Urban Development contributors, or laws or regulations of other governments, or 2) law (HUD) receipts.

through constitutional provisions or enabling legislation. All net positions not otherwise classified as restricted, are shown as unrestricted. Generally, The City reports the following major enterprise funds:

the City would first apply restricted resources when an expense is incurred The Electric Utility Fund accounts for the operation of the City's for purposes for which both restricted and unrestricted net positions are electric utility, a self-supporting activity, which renders services on available.

a user charge basis to residents and businesses located in Anaheim.

The government-wide Statement of Activities demonstrates the degree The Water Utility Fund accounts for the operation of the City's water to which both direct and indirect expenses of the various functions and utility, a self-supporting activity, which renders services on a user programs of the City are offset by program revenues. Direct expenses are charge basis to residents and businesses located in Anaheim.

those that are clearly identifiable with a specific function or program.

Indirect expenses for administrative overhead are allocated among the The Sanitation Utility Fund accounts for the operation of the City's functions and programs using a full cost allocation approach and are solid waste and sanitation program, a self-supporting activity, presented separately to enhance comparability of direct expenses between which provides for the collection and disposal of solid waste, street governments that allocate direct expenses and those that do not. Interest sweeping, and sanitary sewer cleaning on a user charge basis to on general long-term debt is not allocated to the various functions. Program residents and businesses located in Anaheim.

revenues include: 1) charges to customers or users who purchase, use or

CITY OF ANAHEIM The Golf Courses Fund accounts for the operation of the Anaheim The Successor Agency Private Purpose Trust Fund is used to account Municipal ("Dad Miller") Golf Course and the Anaheim Hills Golf for resources legally held in trust for use by the Successor Agency Course, a self-supporting activity that renders services on a user to the Anaheim Redevelopment Agency (Successor Agency). The charge basis. Former Anaheim Redevelopment Agency, a former component unit of the City, dissolved on February 1, 2012 under the State of California The Convention, Sports & Entertainment Venues Fund accounts for Assembly Bill 1X26.

the operations of the Anaheim Convention Center, Angel Stadium of Anaheim, and The City National Grove of Anaheim. See note 19 for The Custodial Funds are used to account for the monies collected and further discussions of the Angel Stadium of Anaheim and The City paid on behalf of other individuals, governments, and organizations.

National Grove of Anaheim. The City reports the following activities in the Custodial Funds: 1)

External Investment Pools is used to account for the external portion Anaheim Regional Transportation lntermodal Center (ARTIC) of the City's investment pool, which commingles resources of legally Management Fund accounts for the operation and maintenance separate entities administered by the City in an investment portfolio of the ARTIC that serves as a rail station for Amtrak intercity rail, for the benefit of all participants. The entities include three Joint Metrolink commuter rail and bus station. The ARTIC renders services Powers Authorities (JPA) governed by local boards. The City separately on a user charge basis.

maintains these entities' money in three individual funds; these The internal service funds, which provide services to the other funds of the funds represent the assets, primarily cash and investment, and the City, are presented in a single column in the proprietary funds financial related net position held by the City for disbursements on demand; statements. Because the principal users of the internal service funds are 2) Community Facility Districts (CFDs) accounts for collections of the City's governmental activities, the assets and liabilities of the internal mello-roos special assessments, payments for the conduit debts and service funds are consolidated into the governmental activities column of the administration for the CFDs located in the City; 3) Money seized the government-wide Statement of Net Position. The costs of the internal by law enforcements pending judgement and the disbursements of service fund services are spread to the appropriate function or program which on order; 4) bail bonds; 5) Inmate Welfare Fund accounts for on the government-wide Statement of Activities and the revenues and miscellaneous receipts collected on behalf of inmates and payments expenses within the internal service funds are eliminated from the of expenditures for their benefits; and 6) Collections of utility helping government-wide financial statements to avoid any doubling effect of hand donations and the related charity disbursements.

these revenues and expenses. The City operates four internal service funds:

Measurement focus and basis of accounting The General Benefits and Insurance Fund is used to account for The governmental funds financial statements are prepared on a current employee compensated absences, retirement and health benefits, financial resources measurement focus and modified accrual basis of and self-insurance programs.

accounting. To conform to the modified accrual basis of accounting, The Motorized Equipment Fund is used to account for motorized certain modifications must be made to the accrual method. These equipment used by City departments. modifications are outlined below:

The Information and Communication Services Fund is used to

• Revenue is recorded when it is earned, measurable and available account for data processing and telecommunication services (received within 60 days after year-end). Revenue considered provided to City departments. susceptible to accrual includes: property taxes, sales and use taxes, transient occupancy taxes, licenses, fees and permits, The Municipal Facilities Maintenance Fund is used to account intergovernmental revenues (including motor vehicle license for office maintenance services and equipment used by City fees), charges for services, fines, forfeits and penalties, and departments.

investment income.

Fiduciary Funds account for assets held by the City in a trustee or custodian

• Expenditures are recorded when the related fund liability is capacity on behalf of others and, therefore, are not available to support City incurred. Principal and interest on general long-term debt are programs. The Fiduciary Funds are not included in the government-wide recorded as fund liabilities when due or when amounts have been financial statements as they are not assets of the City. The City reports the following fiduciary funds:

CITY OF ANAHEIM accumulated in the debt service fund for payments to be made solely by the fees and charges of the activity, 2) the cost of providing early in the following year. services for an activity, including capital costs such as depreciation or debt service, must legally be recovered through fees and charges, or it

• Disbursements for the purchase of capital assets providing is the policy of the City to establish activity fees or charges to recover future benefits are considered expenditures. Bond proceeds are the cost of providing services, including capital costs.

reported as other financing sources.

On the proprietary funds financial statements, operating revenues are With this measurement focus, operating statements present increases those that flow directly from the operations of the activity, i.e. charges (revenues and other financing sources) and decreases (expenditures to customers or users who purchase or use the goods or services of that and other financing uses) in net current assets. This is the traditional activity. Operating expenses are those that are incurred to provide those basis of accounting for governmental funds and also is the manner goods or services. Non-operating revenues and expenses are items such in which these funds are normally budgeted. This presentation is as investment income and interest expense that are not a result of the deemed most appropriate to: l) demonstrate legal and covenant direct operations of the activity.

compliance, 2) demonstrate the sources and uses of liquid resources, and 3) demonstrate how the City's actual revenues and expenditures The Electric and Water Utilityfundsfollowthe uniform system ofaccounts conform to the annual budget. Since the governmental funds financial prescribed by the Federal Energy Regulatory Commission (Electric statements are presented on a different basis than the governmental Utility) and the California Public Utilities Commission (Water Utility).

activities column of the government-wide financial statements, a The utilities are not subject to the regulations of these commissions.

reconciliation is provided immediately following each fund statement.

The reporting focus for the fiduciary funds is upon net position and These reconciliations briefly explain the adjustments necessary to changes in net position and employs accounting principles similar to transform the fund financial statements into the governmental activities proprietary funds.

column of the government-wide financial statements.

Cash and investments The proprietary funds financial statements are prepared on the same basis (economic resources measurement focus and accrual basis of The City pools available cash from all funds for the purpose of increasing accounting) as the government-wide financial statements. Therefore, income through investment activities. Investments in U.S. Treasury most lines for the total enterprise funds on the proprietary funds obi igations and agency securities and medium term corporate notes are financial statements will directly reconcile to the business-type activities carried at fair value based on quoted market prices. Nonparticipating column on the government-wide financial statements. Because the guaranteed investment contracts, flexible repurchase agreements enterprise funds are combined into a single business-type activities are carried at cost-based measure. Money market mutual funds column on the government-wide financial statements, certain interfund and participating interest-earning investment contracts that have a activities between these funds are eliminated in the consolidation for remaining maturity at the time of purchase of one year or less are carried the government-wide financial statements, but are included in the at amortized cost (which approximates fair value). The City's investment fund columns in the proprietary funds financial statements. The net in the State of California Local Agency Investment Fund (LAIF) is carried costs of the internal service funds are also partially allocated to the at fair value based on the value of each participating dollar as provided business-type activities column on the government-wide financial by LAIF. LAIF is authorized by California Government Code (Government statements. A reconciliation of the total enterprise funds on the fund Code) Section 16429 under the oversight of the Treasurer of the State financial statements to the business-type activities column on the of California. Commercial paper, participating guaranteed investment government-wide financial statements is provided on the face of the contracts and negotiable certificates of deposit are carried at amortized fund financial statements. cost (which approximates fair value). Interest income, which includes changes in fair value, on investments is allocated to all funds on the basis Enterprise funds account for operations where the intent of the City of daily cash and investment balances. See note 3 for further di_scussion.

is that the costs-of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user For purposes of the basic financial statements, the City considers cash charges and fees. Under GASB Statement No. 34, enterprise funds are equivalents to be highly liquid short-term investments that are readily also required for any activity whose principal revenue sources meet convertible to known amounts of cash and mature within three months any of the following criteria: l) any activity that has issued debt backed of the date they are acquired. Cash and cash equivalents are included

CITY OF ANAHEIM in the City's cash and investments pool and in accounts held by fiscal uncollectible accounts at June 30, 2022. Allowances for uncollectible agents. accounts were estimated based on certain assumptions; therefore, actual results could differ from the estimates.

Inventories In the governmental funds financial statements, disbursements for Inventories are stated at average cost which consist of expendable providing notes and loan receivables are recorded as expenditures while supplies, electrical parts, and vehicle repair parts. The cost of such the collections of these receivables are recorded as revenues. Due to the Inventories are recorded as expenditures/expenses when consumed extended period oftime over which notes receivable are to be collected rather than when purchased.

and the contingent nature of certain sources of repayment, the City Prepaid and other assets has recorded deferred inflows of resources equal to the outstanding principal and accrued interest balance, net of allowances of the notes Certain payments to vendors such as insurance premiums, prepaid receivable.

power, prepaid rent, prepaid software maintenance and deposits for real property acquisitions reflect costs applicable to future periods and Leases are recorded as prepaid and other assets in both government-wide and Lessor: The City is a lessor for non-cancellable leases of office space, fund financial statements. The costs of these prepaid items are recorded building and land. The City recognizes a lease receivable and a deferred as expenditures/expenses in the period when consumed or when the

. inflow of resources in the government-wide, governmental and City receives title to the real property rather than when purchased.

proprietary funds' financial statements.

Land held for resale At the commencement of a lease, the City initially measures the lease The Housing Authority has recorded parcels of land held for resale receivable at the present value of payments expected to be received in their financial records. The properties held for resale are for the during the lease term. Subsequently, the lease receivable is reduced by primary purpose of developing low and moderate income housing the principal portion of lease payments received. The deferred inflow and are recorded at the lower of cost or estimated net realizable value. of resources is initially measured as the initial amount of the lease At June 30, 2022, land held for resale with an original cost of $10,454 receivable, adjusted for lease payments received at or before the lease was recorded net of the allowance for decline in value of $4,422 and commencement date. Subsequently, the deferred inflow of resources totaled $6,032, with this amount offset by a restriction of fund balance is recognized as revenue over the life of the lease term.

for low and moderate income housing in the Housing Authority major Key estimates and judgments include how the City determines (l} the governmental fund financial statement.

• discount rate it uses to discount the expected lease receipts to present The Long Range Property Management Plan non major Special Revenue value, (2) lease term, and (3) lease receipts.

Fund records parcels of land held for resale transferred from the

• The City uses the interest rate as stated on the lease agreements.

Successor Agency to the Anaheim Redevelopment Agency on January When the interest rate is not stated, the City uses its estimated 1, 2016 under the authorization of the approved Long Range Property incremental borrowing rate as the discount rate for leases.

Management Plan of the State of California Health and Safety Code Section 34191.5. The parcels are approved for future developments. The

• The lease term includes the noncancellable period of the lease.

City has recorded the land held for resale equal to the net realizable

• Lease receipts included in the measurement of the lease receivable value of these assets as recorded in the Successor Agency's financial is composed of fixed payments from the lessee.

records in the amount of $15,295 net of allowance for decline in value of $5,566 with a corresponding restriction in fund balance for future The City monitors changes in circumstances that would require a economic development. remeasurement of its lease, and will re-measure the lease receivable and deferred inflows of resources if certain changes occur that are Notes receivable expected to significantly affect the amount of the lease receivable.

In the government-wide financial statements, notes receivable of The City is also a lessor of various ground leases that lease payment

$74,700 includes accrued interest receivable of $18,878, ranging from requirements are dependent on residual receipts generated from 3% to 10% interest per annum, and is net of allowances of $2,545 for

CITY OF ANAHEIM the leasing assets. The City records the residual receipts as inflow of when incurred, and are not included in the measurement of the lease resources when receives. liability.

Lessee: The City is a lessee for noncancellable leases of equipment, Assets and liabilities arising from a lease are initially measured on a building and land. The City recognizes a lease liability and an intangible present value basis. Lease liabilities include the net present value of the right-to-use leased assets in the government-wide financial statements following lease payments:

and proprietary fund financial statements.

• fixed payments (including in-substance fixed payments), less any At the commencement of a lease, the City initially measures the lease lease incentives receivable liability at the present value of payments expected to be made during

• amounts expected to be payable by the City under residual value the lease term. Subsequently, the lease liability is reduced by the guarantees principal portion of lease payments made. The leased asset is initially measured as the initial amount of the lease liability, adjusted for lease

• the exercise price of a purchase option if the group is reasonably payments made at or before the lease commencement date, plus certain to exercise that option, and certain initial direct costs. Subsequently, the leased asset is amortized

• payments of penalties for terminating the lease, if the lease term on a straight-line basis over its useful life.

reflects the City exercising that option.

Key estimates and judgments related to leases include how the City Lease payments to be made under reasonably certain extension options determines (l) the discount rate it uses to discount the expected lease are also included in the measurement of the liability. Extension and payments to present value, (2) lease term, and (3) lease payments.

termination options are included in a number of the city's land leases.

• The City uses the interest rate charged by the lessor as the The lease payments are discounted using the interest rate implicit in discount rate. When the interest rate charged by the lessor is the lease. If that rate cannot be readily determined, which is generally not provided, the City generally uses its estimated incremental the case for leases in the group, the lessee's incremental borrowing rate borrowing rate as the discount rate for leases.

is used, being the rate that the individual lessee would have to pay to

• The lease term includes the noncancellable period of the lease. borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms,

• Lease payments included in the measurement of the lease liability security and conditions.

are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. In determining the lease Variable payments that depend on an index or a rate (such as the term, management considers all facts and circumstances that Consumer Price Index or a market interest rate), initially measured using create an economic incentive to exercise an extension option, or the index or rate as of the commencement of the lease term.

not exercise a termination option. Extension options (or periods Restricted assets after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Certain proceeds of the City's bonds, as well as certain resources set aside for their repayment, are classified as restricted on the Statement The City monitors changes in circumstances that would require a of Net Position or Balance Sheet, because they are maintained in remeasurement of its lease and will remeassure the lease asset and separate bank accounts and their use is limited by applicable debt liability if certain changes occur that are expected to significantly affect covenants. Additionally, resources set aside by the Electric Utility for the amount of the lease liability.

the future decommissioning of its former ownership share of the San Leased assets are reported with other capital assets and lease liabilities Onofre Nuclear Generating Station, Units 2 and 3 (SONGS) and the San are reported with long-term debts on the statement of net position. Juan (SJ) Generating Station, Unit 4, are classified as restricted on both the government-wide Statement of Net Position and proprietary funds Payments due under the lease contracts include fixed payments plus, Statement of Net Position.

for certain of the City's leases, variable payments, primarily maintenance charges. Maintenance charges are accounted for as outflow of resources GE

CITY OF ANAHEIM Capital assets period when the debt is issued. Prepaid insurance costs are capitalized and amortized over the lives of the related debt issues on a basis that Under GASS Statement No. 34, all capital assets, whether owned approximates the effective-interest method.

by governmental activities or business-type activities are recorded and depreciated in the government-wide financial statements. No Bond refunding costs long-term capital assets or depreciation are shown in the governmental Bond refunding costs are deferred and amortized over the life of the funds financial statements.

new bond or over the life of the old bond, whichever is shorter, on a basis Capital assets, including public domain infrastructure (e.g., roads, that approximates the effective-interest method. These costs are shown bridges, sidewalks and other assets that are immovable and of value as a deferred outflow of resources on the Statement of Net Position.

only to the City), are defined as assets with an initial, individual cost of Accretion more than $5 ($50 for infrastructure) and an estimated useful life of greater than one year. Accretion is an adjustment of the difference between the prices of a bond or certificates of participation (COP) issued at an original discount Capital assets are recorded at cost or estimated historical cost if and the par value of the bond or COP. The accreted value is recognized purchased or constructed. Donated capital assets, donated works of as it accrues by fiscal year.

art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value rather than fair value at Deferred outflows of resources the date of donation.

In addition to assets, the statement of net position will sometimes report The costs of normal maintenance and repairs that do not add to the a separate section for deferred outflows of resources. This separate value of the capital asset or materially extend capital assets lives are not financial statement element, deferred outflows of resources, represents capitalized. Major improvements are capitalized and depreciated over consumption of net assets that applies to future periods and so will the remaining useful lives of the related capital assets. not be recognized as an outflow of resources (expense/expenditure) until then. In the government-wide statement of net position, the City Major outlays for capital assets and improvements are capitalized as the reported the following in this category:

projects are constructed.

l. Deferred charges on refunding bonds - A deferred charge on Capital assets are depreciated using the straight-line method over the refunding bonds results from the difference in the carrying value following estimated useful lives:

of debt and its reacquisition price. This amount is deferred and Buildings, structures and improvements Sta BS years amortized over the shorter of the life of the refunded or refunding Utility plant Sta 75 years debt. The City reported $25,972 (this amount includes $3,825 deferred Machinery and equipment 2 to 40 years loss from refunding bonds and $22,147 payments of future interest Infrastructure 25 to 75 years resulting from partial defeasance of capital appreciation bonds) in governmental activities and $15,210 in business-type activities in this The net book value of capital assets retired or disposed of, related salvage category.

value proceeds and the costs of removal are recorded in accumulated depreciation in the Electric Utility and Water Utility Funds. In all other 2. Deferred outflows of OPES related items - these balances represent cases, these amounts are recorded as gains or losses on disposal of current fiscal year contribution to the OPES Trust that will be applied capital assets. as a reduction in net OPES liability in the next fiscal year; or other items arising from changes in actuarial assumptions, difference Capital assets transferred between funds are transferred at their net between actual and projected experience, difference between book value (cost less accumulated depreciation), as of the date of the actual and projected investment gains/losses or changes in a fund's transfer.

proportionate share of the net OPES liability; the amount will be Debt issuance costs amortized and reported as a component in OPES expense in future fiscal years (refer to discussion of OPES Plan). The City reported Debt issuance costs, with the exception of prepaid insurance costs,

$26,629 in governmental activities and $8,118 in business-type are recognized as outflow of resources (expense/expenditure) in the-activities in this category.

6'i

CITY OF ANAHEIM

3. Deferred outflows of resources of pension related items - these Business-type balances represent current fiscal year contribution to the pension Activities plans that will be applied as a reduction in net pension liability in Enterprise Funds:

the next fiscal year; or other items arising from changes in actuarial Electric Utility $ 103,227 assumptions, difference between actual and projected experience, Water Utility 2426 difference between actual and projected investment gains/losses or Total $ 105,653 changes in a fund's proportionate share of the net pension liability; 3. Deferred inflow from regulated business activities reported in the amount will be amortized and reported as a component in business-type activities totaled $15,703 represented the excess pension expense in future fiscal years (refer to discussion of Pension funding of asset retirement obligations primarily resulting Plans). The City reported $90,512 in governmental activities and from the accumulation of investment earnings from the

$22,895 in business-type activities in this category. decommissioning irrevocable trust account. Refer to note l on Deferred inflows of resources page 69 of the notes to the financial statements of this report.

4. Deferred inflow related to leases - the City, as lessor, recognizes a In addition to liabilities, the statement of financial position reports a lease receivable and a deferred inflow of resources which is initially separate section for deferred inflows of resources. This separate financial measured at the present value of lease payments expected to be statement element, deferred inflows of resources, represents acquisitions received during the lease term adjusted for lease payments received of net assets that apply to future periods and so will not be recognized at or before the lease commencement date. Subsequently, the as an inflow of resources (revenue) until that time. The City reported the deferred inflows of resources is recognized as a revenue over the life following in this category:

of the lease term. The City reports $12,706 in governmental activities

1. Deferred inflow related to unavailable resources, which include and $10,166 in business-type activities in this category.

revenues, notes and long-term receivable, due from the Successor

5. Deferred inflow related to refunding bonds includes gains from Agency, measured under the modified accrual basis of accounting debt refunding. The City reports a total of $13,728 in business-type reported in governmental funds. These amounts are deferred and will activities in this category.

be recognized as an inflow of resources in the period that the amounts become available. 6. Deferred inflows of resources related to OPEB represents changes in total OPEB liability arising from changes in actuarial assumptions; Nonmajor difference between actual and projected plan experiences; difference General Housing Governmental between actual and projected investment gains/losses or changes of Fund Authority Funds Total Governmental Funds: the Fund's proportionate share of the net OPEB liability. This amount Grants $ 894 $ 16,185 $ 17,079 will be amortized and included as a component in OPEB expenses in Other revenues $ 7,973 140 8,113 future fiscal years. Refer to discussion of the OPEB Plan in note 14 of Long-term notes and 657 49,863 21,775 72,295 the notes to the financial statements on pages 109-112 of this report.

loans receivable The City reported $51,214 in governmental activities and $18,470 in Total $ 8,630 $ 50,757 $ 38,100 $ 97,487 business-type activities in this category.

2. Regulatory credits - accumulated from collections of the Electric 7. Deferred inflows of resources related to pension are certain changes and Water Utility customers reported in business-type activities. in total pension liability and fiduciary net position that are to be These amounts provide recovery in current period for costs to be amortized and recognized as a component in pension expenses in incurred in future periods (refer to the discussion of Regulatory future fiscal years. These are the balances that arise from changes Credits below). in actuarial assumptions; difference between actual and projected experience; difference between actual and projected investment gains/losses or changes in the Fund's proportionate share of the Plan's net pension liability. Refer to discussion of Pension Plans in note 13 of the notes to the financial statements on pages 103-108 of GE

CITY OF ANAHEIM this report. The City reported $187,023 in governmental activities and increased flexibility by allowing the Water Utility to maintain financial

$57,927 in business-type activities in this category. performance indicators and goals specified in bond covenants. The account is funded through expense reimbursements such as water Regulatory credits supply cost refunds received from the Metropolitan Water District and The Electric Utility's Rates, Rules, and Regulations provide for the Orange County Water District and other miscellaneous credits and Rate Stabilization Account (RSA), which contains two components: revenue. At June 30, 2022, the deferred inflows of resources recorded the Power Cost Adjustment (PCA) that was adopted by City Council for regulatory credits totaled $2,426 for the Water Utility. During fiscal on April l, 2001, and the Environmental Mitigation Adjustment (EMA) year 2022, no RSA revenue was recognized.

that was adopted by the City Council on January 13, 2009. The PCA has Compensated absences mitigated variations in the power supply or fuel costs. The EMA allows the recovery of environmental mitigation costs, such as greenhouse Compensated absences, vacation and sick pay, for all City employees are gas emissions costs, the marginal cost differential between renewable generally paid by the General Benefits and Insurance Fund, an internal power and traditional fossil-fuel-based power. The RSA provides the City service fund. The General Benefits and Insurance Fund is reimbursed with operational and billing flexibility to mitigate material fluctuations through payroll charges to all other funds based on estimates of in the cost of energy, loss of revenues, or unplanned costs including benefits to be earned and used during the fiscal year. It is the policy unexpected long-term loss of a generating facility, unplanned limits of the City to pay all accumulated vacation pay when an employee on the ability to transmit energy to the City, or major disasters. The retires or terminates. Accumulated sick pay in excess of 175 hours0.00203 days <br />0.0486 hours <br />2.893519e-4 weeks <br />6.65875e-5 months <br /> per RSA funded by PCA and EMA collections is billed to customers through employee is paid to employees at their then current rate of pay in standard rates. January each year or upon termination from the City. Employees are paid for all accumulated sick pay when they retire from the City. Vested The Electric Utility restructured its rates effective September l, 2015 vacation and sick pay benefits are accrued when incurred in the General in order to more effectively align the recovery of the Electric Utility's Benefits and Insurance Fund and atJune 30, 2022, totaled $23,752 and is costs with the nature of the costs incurred. This was accomplished by included in other long-term liabilities in the Statement of Net Position.

reducing the Power Cost Adjustment (PCA) and the Environmental Also included in long-term liabilities in the Statement of Net Position at Mitigation Adjustment (EMA) with corresponding increases to base June 30, 2022, is compensatory ti me Iia bility of $707.

rates. The restructuring was designed to be revenue neutral to the customer. Changes in the City's compensated absences liability in fiscal year 2022 During fiscal year 2022 the Electric Utility recognized $40,000 in RSA were as follows:

revenues to mitigate the impact of environmental mitigation costs. Estimated compensated absences liability at beginning of year $ 24,665 This amount is included in the operating revenues Sales of retail and Estimated compensated absence benefits earned 26,923 wholesale electricity of the Electric Utility Enterprise Fund. Compensated absences used (27,129)

Compensated absences liability at end of year $ 24,459 As of June 30, 2022, the PCA rates were $0.0100 per kWh for residential, general commercial, industrial and municipal customers and $0.0048 Asset Retirement Obligations (ARO)-Provision for decommissioning for large commercial customers. The Electric Utility recorded deferred costs inflows of resources for regulatory credits related to PCA totaled GASB Statement No. 83, Certain Asset Retirement Obligations effective

$45,638. The EMA rates were $0.0105 per kWh for residential, general July l, 2018. This standard requires the City to record a liability and commercial, industrial and municipal customers and $0.0128 per KWh deferred outflow of resources associated with the retirement of tangible for large commercial customers. The deferred inflows of resources capital assets that it has an enforceable legal obligation to take specific recorded for regulatory credits related to EMA totaled $57,589. actions to retire. GASB Statement No. 83 requires governmental entities The Water Utility's rates, rules and regulations provide for a water to record a liability and a corresponding deferred outflow at the time regulatory credit account to reflect variations in the cost of water to the there is an external obligating event such as a federal or state regulation, Water Utility and provide more stable retail water rates to the customers a legally binding contract or court judgment and when there is an of the City's Water Utility. This rate stabilization account (RSA) provides internal obligating event which is at the time an asset is acquired or if constructed when placed in service.

CITY OF ANAHEIM Federal regulations require the City's Electric Utility to provide for Associates, Inc. 2.49%; the Incorporated County of Los Almos, New the future decommissioning costs of its former ownership share of Mexico 2.175%; and Utah Associated Municipal Power Systems 2.169%. In the San Onofre Nuclear Generating Station (SONGS). Prior to the fiscal year 2022, The Electric Utility's percentage liability decreased from implementation of GASB Statement No. 83, the Electric Utility has 3.1% to 2.7% as the plant continues to operate after the Electric Utility established a provision for decommissioning costs of SONGS and the transferred its ownership rights on December 31, 2017. As of June 30, restoration of the beachfront at San Onofre, California, that is used 2022, the Electric Utility has recorded a provision for decommissioning by the plant. A separate irrevocable trust account was established for costs for SJ of $5,398 with assets of $6,079 in the City's restricted cash amounts funded, and these amounts are classified as restricted assets account for the decommissioning costs. The overfunding amount of in the Statement of Net Position. The Electric Utility estimated and $681, recorded in the deferred inflows from regulated business activities recorded its asset retirement obligations at the current value of outlays at June 30, 2022, will be returned to Electric rate customers if there are expected to be incurred using a site specific cost study performed by any funds remaining at the completion of the decommissioning which a third-party consultant. Current value is the amount that would be is expected to take approximately 20 to 40 years. The Electric Utility paid if all equipment, facilities, and services included in the estimate recorded its proportionate share of the asset retirement obligations were acquired at the end of the current reporting period. This approach based on its former ownership percentages of estimates made by the includes probability weighting of potential outcomes when this data primary owners of the assets which measured their respective liability can be obtained at a reasonable cost. under standards set by the GASB.

On June 7, 2013, Southern California Edison (SCE) announced the In 2020, the Kraemer Combustion Turbine plant (CT) located in permanent retirement of the SONGS plant. The Electric Utility's minority the northeast part of the City was taken out of service and will be interest *in SONGS units 2 and 3 is approximately 2.4681% of the total decommissioned as part of the Electric Utility's responsibility to provide decommissioning costs estimated at $5,242,984 at June 30, 2022. SCE has for the re purposing of the site for use for future needs of our customers.

decommissioning responsibility as well as majority interest of 75.7419%. The Electricity Utility owns 100% of the plant. The Electric Utility has Other minority owners are San Diego Gas and Electric 20.0%, and the recorded a provision for decommissioning costs for the CT of $6,030.

City of Riverside Public Utilities 1.79%. The Electric Utility's minority share interest in.SONGS of 2.4681% of the total decommissioning liability, The Electric Utility had the following asset retirement obligations as of net of payments already made by the Electric Utility, is $76,351 at June June 30, 2022:

30, 2022. The Electric Utility currently has assets of $90,803 including Asset Qbligating Event Beginning Additions Pa~ments Ending accrued interest of $472 in an irrevocable trust for the decommissioning SONG Ownership Agreement $ 69,461 $ 11,070 $ (4,180) $ 76,351 costs. The overfunding amounts of $14,452, recorded in the deferred SJ Ownership Agreement 5,398 5,398 inflows from regulated business activities at June 30, 2022, are held in CT Ownership 6,030 6 030 trust that will be used to reduce rates in the future or return to Electric $ 80,889 $ 11,070 $ (4,180) $ 87,779 rate customers if there are any funds remaining at the completion of decommissioning which is expected to take approximately 30 to 40 Pension plan years. During fiscal year 2022, the Electric Utility paid $4,180 related to Full-time City employees are members of the State of California Public SONGS decommissioning costs. Employees' Retirement System (Cal PERS). The City's policy is to fund all The Electric Utility was also previously a minority owner of the San annual required actuarially determined contribution (ADC); such costs to Juan Generation Station (SJ) located in San Juan, New Mexico and is be funded are determined annually as ofJulyl by the CalPERS's actuary.

responsible for the future decommission costs related to its former The City maintains three Pension Plans with CalPERS - Miscellaneous ownership share in Units 2 and 3. The Electric Utility's minority share Plan, Police Safety Plan and Fire Safety Plan. See note 13 for further interest in SJ is 3.1% of the total estimated decommissioning liability discussion.

of $174,130. PNM Resources, Inc. has decommissioning responsibility Payments of the ADC are liquidated from the Funds where the as well as majority interest of 46.297%. Other minority owners are employees' payroll expenses are charged. The Police and Fire Safety Texas-New Mexico Power Company 19.8%; Southern California Public Plans are liquidated from the General Fund, and the Grant nonmajor Power Authority 12.71%; M-S-R Public Power Agency 8.7%; the City of special revenue funds. The Miscellaneous Plan is allocated among all Farmington, New Mexico 2.559%; Tri State Generation and Transmission City Funds that include the General Fund, the Housing Authority major 7(

CITY OF ANAHEIM special revenue fund, all nonmajor capital project funds, all non major City-sponsored OPEB defined benefit plan and furthermore, that the special revenue funds, and all proprietary funds, in proportion to the City's responsibility is limited to contributions negotiated with the IBEW, Fund's payroll expenses. as such, there is no related retiree-medical liability included in the City's OPEB plan.

For purposes of measuring the net pension liability and deferred outflows/ inflows of resources related to pensions, and pension expense, Net position restricted by enabling legislation information about the fiduciary net position of the City's California The government-wide Statement of Net Position reports $277,443 of Public Employees Retirement System (CalPERS) plans (Plans) and governmental activities restricted net position, of which $68,223 is additions to/deductions from the Plans' fiduciary net position have restricted by enabling legislation.

been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee Fund balances contributions) are recognized when due and payable in accordance In the fund financial statements, governmental funds report the with the benefit terms. Investments are reported at fair value.

following classifications:

Postemployment benefits other than pension (OPEB)

• Nonspendable fund balance includes amounts that cannot be Regular, full time employees meeting certain eligibility requirements spent because they are either (a) not in spendable form or (b) are provided the OPEB benefits. The City is a participant in the California legally or contractually required to be maintained intact. The "not Employers Retiree Benefit Trust (CERBT). It is the City's policy to fund all in spendable form" criterion includes items that are not expected annual required actuarially determined contributions (ADC) determined to be converted to cash, for example, inventories, prepaid or long by an actuarial valuation. term loans and notes receivable.

Payments of the ADC are allocated among all City Funds in proportion

• Restricted fund balance includes amounts when constraints to the Fund's full time payroll expenses in the General Fund, the Housing placed on the use of the resources are either imposed by Authority major special revenue fund, all non major capital project funds, external resource providers, constitutional provisions or enabling all non major special revenue funds and all proprietary funds. legislation.

For purposes of measuring the net OPEB liability and deferred outflows/

• Committed fund balance includes amounts that can be used inflows of resources related to OPEB, and OPEB expense, information only for the specific purposes pursuant to constraints imposed about the fiduciary net position of the City's OPEB Plan and additions to/ by formal action of the City's highest level of the decision-making deductions from the Plans' fiduciary net position have been determined authority. The City Council is the highest level of decision-making on the same basis as they are reported by CERBT. For this purpose, authority that can, by adoption of an ordinance prior to the end of benefit payments are recognized when due and payable in accordance the fiscal year, commit fund balance. Once adopted, the limitation with the benefit terms. Investments are reported at fair value. See note imposed by the ordinance remains in place until a similar action 14 for further discussion. by the City Council to remove or revise the limitation.

On October 1, 2005, the City and the International Brotherhood of

• Assigned fund balance includes amounts that the City intends Electrical Workers {IBEW), Local 47,entered into a Letter of Understanding to use for specific purposes but do not meet the criteria to be related to the Retiree Medical Plan. Under the Plan, the IBEW would classified as restricted or committed. The City Council has by establish a union trust (Trust) for the sole and exclusive purpose of Resolution authorized the City Manager or his designee to providing post-retirement medical benefits to IBEW bargaining unit establish, modify or rescind an assigned fund balance.

employees employed by City of Anaheim on October 1, 2005, and their

• Unassigned fund balance accounts for the residual balance of eligible surviving spouses and dependents. The City agreed to transfer the City's general fund and includes all spendable amounts not to the Trust for each employee in the I BEW bargaining unit the one-time contained in other classifications. In other governmental funds, post-retirement medical reserve allocations, and the IBEW and City the unassigned classification reports a deficit balance resulting also agreed that the sum of four percent of base biweekly pay shall be from overspending for specific purposes for which amounts had contributed by the employees of the I BEW bargaining unit to the Retiree been restricted, committed or assigned.

Medical Plan. It should be noted that the Trust does not constitute a 71

CITY OF ANAHEIM Generally, the City would first apply restricted resources when change individual budget line items within a department as long as the expenditures incurred for which both restricted and unrestricted total department's appropriation amount is not changed.

resources are available. Further, when the components of unrestricted The City utilizes an encumbrance system as a management control fund balance can be used for the same purpose, committed fund technique to assist in controlling expenditures. All appropriations lapse balance is applied first, followed by assigned fund balance. Unassigned at the end of the fiscal year, except for capital projects which are carried fund balance is applied last.

forward until such time as the project is completed or terminated and In all governmental funds, encumbered amounts have been restricted for encumbered balances that are re-appropriated in the next fiscal or assigned for specific purposes for which resources have already been year.

allocated. On June 30, 2022, encumbrances totaled $1,228, $126 and GASS Statement No. 34 allows that budgetary comparison statements

$7,023 in the General Fund, Housing Authority Special Revenue Fund, for the General Fund and major special revenue funds be presented in and other nonmajor governmental funds, respectively.

the basic financial statements rather than as Required Supplementary The accumulated deficit fund balances at June 30, 2022 of $11,899 in Information. These statements must display original budget, amended the Streets Construction, and $309 in the Transportation Improvement budget and actual results.

Projects non major Capital Project Funds, will be eliminated in future Budgeted revenue amounts represent the original budget modified years by the receipt of reimbursements for grant expenditures.

by City Council authorized adjustments during the year, which were Deficit Net Position - Internal Service Funds contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for The accumuated deficit net position at June 30, 2022 of $13,988 in the supplemental appropriations during the year. Budgets are generally General Benefits and Insurance, and $2,156 in the Information and prepared in conformity with GAAP using the modified accrual basis Communication Services will be eliminated in future years by charges of accounting, with the exception of capital leases, or other similar to user departments.

instruments, and land held for resale, which are budgeted on a cash Deficit Net Position - Successor Agency Fiduciary Fund basis.

The accumulated deficit net position atJune 30, 2022 of $137,094 will be Property taxes eliminated in future years by the receipts of Redevelopment Property Property taxes attach as an enforceable lien on property as of January Tax Trust Fund (RPTTF) revenue allocations.

l. Taxes are levied on July l and are payable in two installments due on Budgetary principles November l and February l and become delinquent after December 10 and April 10. The County of Orange, California (County) bills and collects The City is required by its charter to adopt an annual budget on the property taxes and remits them to the City in installments during or before June 30 for the ensuing fiscal year. The General, special the year. City property tax revenues are recognized when levied in the revenue, debt service, and capital projects governmental fund types governmental funds to the extent that they result in current receivables and proprietary fund types have legally adopted budgets approved collectible within 60 days after year-end. See note 10 for discussion of by City Council. The level of budgetary control (that is, the level at pledged property tax revenues.

which expenditures cannot legally exceed the appropriated amount) is established at the department level. From the effective date of the The County is permitted by State law (Proposition 13) to levy taxes at 1%

budget, the amounts stated herein as proposed expenditures/expenses of full market value (at time of purchase) and can increase the property become appropriations to the various City departments. Throughout tax rate no more than 2% per year from the full market value at the time the fiscal year the budget was amended to add supplemental of purchase. The City receives a share of this basic levy proportional to appropriations. All amendments to the budget which change the total

• what it received in the 1976 and 1978 periods.

appropriation amount for any department require City Council approval Entitlements, shared revenues and grants and all increases in appropriations in operating expenditures must be accompanied by an increase in revenue sources of a likely amount to Entitlements and shared revenues are recorded at the time of receipt or maintain a balanced budget. The City Manager has the authority to earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized in the fund financial statements as revenue

CITY OF ANAHEIM when the qualifying expenditures have been incurred, all eligibility of certain ground leases. Lease payments of these ground leases are requirements have been met, and reimbursement is received within dependent on the leasing assets' annual residual receipts.

the availability period.

The following table provides a reconciliation of net position at June Revenue recognition for Electric Utility, Water Utility, and Sanitation 30, 2021 as previously reported, to net position at June 30, 2021, as Utility Funds restated:

Revenue, net of uncollectible amount, is recorded in the period in Governmental activities:

which services are provided. Most residential and smaller commercial Net position as previously reported at 6/30/2021 -'----.....;;..;;c....;.:.c--=..::::...

$ 684,062 customers are billed bimonthly and all other customers monthly. At Adjustment- ground lease receivable with no June 30, 2022 unbilled but earned service charges recorded in accounts fixed payment terms (5,793) receivable for the Electric Utility, Water Utility, and Sanitation Utility Adjustment - remeasurement of previously Funds amounted to $24,491, $1,508, and $4,302, respectively. See note recorded equipment capital lease (500) 10 for discussion of pledged revenues. Total adjustments (6,293)

Use of estimates Net position, as restated at 6/30/2021 $ 677,769 The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect

• Statement No. 92, Omnibus 2020. The Statement addresses the reported amounts of certain assets and liabilities and disclosures of a variety of practice issues that have been identified during contingent assets and liabilities at the date of the financial statements implementation and application of certain GASB Statements and the reported amounts of revenues and expenditures/expenses including specific provisions in the effective date of Statement during the reporting period. As such, actual results could differ from No. 87, Leases, and implementation Guide No 2019-3, Leases; those estimates. accounting and financial reporting for pension and other postemployment benefits, reporting for intra-entity transfers of NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS assets, fiduciary activities, measurement of liabilities (and assets, if any} related to asset retirement obligations (AROs} in a government The City adopted the following new accounting pronouncements issued acquisition, reporting by public entity risk pools for amounts that by the GASB during the current fiscal year ended June 30, 2022: are recoverable for reinsurers or excess insurers, nonrecurring

• Statement No. 87, Leases. This statement establishes accounting fair value measurements of assets or liabilities and terminology and financial reporting standards focused on certain lease used to refer to derivative instruments. The City implemented the liabilities that currently are not reported. Comparability of requirements of this statement effective July l, 2021.

financial statements among governments will be enhanced

• Statement No. 93, Replacement of Interbank Offered Rates. The by requiring lessees and lessors to report leases under a single City implemented the requirements of this Statement effective model. Decision-usefulness will also be enhanced by requiring July 1, 2021.

notes to financial statements related to the timing, significance, and purpose of leasing arrangements. The City implemented the

• Statement No. 99, Omnibus 2022. The requirement related to requirements of this Statement effective July 1, 2021. extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future In implementing Statement No. 84, the City re-measured the revenues by pledging governments, clarification of certain previously recorded Technology equipment capital leases. As there provisions in Statement 34, as amended, and terminology were no stated interest rates on these lease agreements, the City updates related to Statement 53 and Statement 63 are effective applied the incremental borrowing rate. The re-measurement upon issuance.

causes a reduction to previously recorded net position by $500. An adjustment was also made to reduce the previously recorded net The City had early implemented Statement No. 89, No. 97 and 98 in position by $5,793 from de-recognizing the lease receivable balances the prior fiscal year. Implementations of the above GASB Statements have no material effect on amounts reported in the City's financial statements at June 30, 2022.

CITY OF ANAHEIM The City is currently reviewing its accounting practices to determine the after June 15, 2022, and all reporting periods thereafter. The potential impacts on the financial statements for the following GASB requirements related to financial guarantees and the classification Statements: and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June

• Statement No. 91, Conduit Debt Obligations. The primary objectives 15, 2023, and all reporting periods thereafter.

of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in

• Statement No. 100, Accounting Changes and Error Corrections practice associated with (1) commitments extended by issuers, (2) - an amendment of GASB Statement No. 62. The requirements arrangements associated with conduit debt obligations, and (3) of this Statement are effective for accounting changes and error related note disclosures. The Requirements of this Statement are corrections made in fiscal years beginning after June 15, 2023, and effective for reporting periods beginning after December 15, 2021. all reporting periods thereafter.

• Statement No. 94, Private-Private and Public-Public Partnerships

• Statement No. 101, Compensated Absences. This Statement and Availability Payment Arrangements. A Public-Private and amends the existing requirements to disclose the gross increases Public-Public Partnership (PPP) is an arrangement in which a and decreases in a liability for compensated absences to allow government (the transferor) contracts with an operator to provide governments to disclose only the net change in the liability. In public services by conveying control of the right to operate or use addition, governments are no longer required to disclose which a nonfinancial asset, such as infrastructure or other capital assets governmental funds typically have been used to liquidate the (the underlying PPP asset), for a period of time in an exchange liability for compensated absences. The requirements of this or exchange-like transaction. Availability payment arrangements Statement are effective for fiscal years beginning December 15, (APS) have also been used in practice to procure governmental 2023, and all reporting periods thereafter.

services. This Statement establishes standards of accounting and financial reporting for PPPs and APAs for governments. The NOTE 3 - DEPOSITS AND INVESTMENTS:

requirements of this Statement are effective for the fiscal year The City maintains a cash and investment pool, which includes the cash that ends June 30, 2023.

balances of all funds, and is invested by the City Treasurer to enhance

• Statement No. 96, Subscription-Based Information Technology interest earnings. The pooled interest earned, net of administrative fees, Arrangements. Subscription-Based Information Technology is reallocated to each fund based on their respective average daily cash Arrangements (SBITAS) are arrangements that governments balances.

enter into vendor-provided information technology, software The City's pooled investment fund is rated AA+f/Sl by Standard and Poor's and associated tangible capital assets for subscription payments Corporation (S&P).

without granting governments perpetual license or title to the IT software and associated tangible capital assets. This Statement The City's investment policy further limits the permitted investments establishes accounting and financial reporting for SBITAS. The in Government Code Sections 53600 et al, 16429.l and 53684 to the requirements for this Statement will take effect for financial following: obligations of the United States government, federal agencies, statements starting with the fiscal year that ends June 30, 2023. and government sponsored enterprises; medium-term corporate notes; certificates of deposit; bankers' acceptances; commercial paper; LAIF;

• Statement No. 99, Omnibus 2022. The requirements related to repurchase agreements; reverse repurchase agreements; supranationals; leases, PPPs, and SBITAs are effective for fiscal years beginning asset-backed securities, and money market mutual funds.

CITY OF ANAHEIM Deposits and investments are comprised of the following at June 30, Investments 2022: The City Treasurer prepares an investment policy statement annually, Cash and Restricted which is presented to the Budget, Investment and Technology Cash Cash and Cash Restricted Commission for review and the City Council for approval. The approved Equivalents Investments Equivalents Investments Total investment policy Statement is submitted to the California Debt and Governmental activities:

General Fund $ 46,447 $ 129,910 $ 6,150 $ 12,059 $ 194,566 Investment Advisory Committee in accordance with Government Code.

Housing Authority 18,542 48,166 5,805 72,513 Nonmajor The policy provides the basis for the management of a prudent, governmental funds 40,975 105,743 78,115 79,865 304,698 conservative investment program. Public funds are invested for the Internal service funds 20,628 53492 6500 80,620 maximum security of principal and to meet daily cash flow needs while Total governmental activities 126,592 337,311 96570 91924 652,397 providing a return. All investments are made in accordance with the Business-type activities: Government Code and, in general, the City Treasurer's policy is more Electric Utility 41,841 53,094 166,820 162,225 423,980 restrictive than Government Code.

Water Utility 21,975 23,289 39,592 6,211 91,067 Sanitation Utility 13,659 35,419 7,808 17,442 74,328 Investments authorized by the Government Code and the City's Galf Courses 718 680 1,398 Convention, Sports &

investment policy Entertainment Venues 10,213 26483 9070 45766 The following table identifies the investment types that are authorized Total business-type for the City by its investment policy which is more restrictive than activities 88406 138,965 223,290 185,878 636,539 Government Code. The table also identifies certain provisions of the Government-wide totals 214,998 476276 319 860 277 802 1,288,936 City's investment policy that address interest rate risk, credit risk, and Fiduciary funds 32097 6387 38,484 concentration of credit risk. This table does not address investments of Total cash and investments i 214,998 i 476,276 i 351,957 i 284,189 i 1,327,420 debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the Deposits and investments are comprised of the following at June 30, Government Code or the City's investment policy.

2022:

Maximum Maximum (S&P/

Maximum Percentage of Investment in Moody's/

Deposits $ 20,758 Authorized Investment Type Maturity Portfolio* One Issuer Fitch)

Investments and cash equivalents 1,306,662 Total deposits and investments $ 1,327,420 U.S. Treasury obligations 5Years 100% None None U.S. agency securities 5Years 100% 40% None At June 30, 2022, deposits of $20,758 with a corresponding bank balance Banker's acceptances 180 days 40% 5% None of $30,441, were maintained in various federally regulated financial Commercial paper 270 days 25% 5% A-l;P-l;F-1 institutions. The difference of $9,683 represents deposits in transit, Negotiable certificates of deposit 365 days 25% 5% None outstanding checks, and other reconciling items. Deposits with bank Repurchase agreements 1 Year 30% None None balances of $1,750 are insured by the Federal Depository Insurance Reverse repurchase agreements 90 days 20% None None Corporation. For deposits with bank balances totaling $28,691, California Medium-term corporate notes 5Years 30% 5% A-state statutes require federally regulated financial institutions to secure Money market mutual funds N/A 20% 10% AAA a city's deposits by pledging collateral consisting of either government $75 million $75 million securities with a value ofll0% of a city's total deposits or by pledging first LAIF N/A per account per account None Time Certificate of Deposit 1 year 20% 5% None trust deed mortgage notes having a value ofl50% of a city's total deposits. Supranationals 5 Years 20% 10% AA The collateral is required by regulation to be held by the counterparty's *Excluding amounts held by bond trustees that are not subject to Government Code restrictions agent in the name of the City.

7':.

CITY OF ANAHEIM The City's pooled investments comply with the requirements of the At June 30, 2022, the following invetments represent five percent or more of investment policy. GAAP requires disclosure of certain investments the City's total investments controlled by bond trustees:

in any one issuer that exceeds five percent concentration of the total Fair investments. At June 30, 2022, the following investments represent five Issuer Investment Tyge Value  %

percent or more of the City's total pooled investments. First American Money market mutual $ 263,124 42%

Treasury Obligations fund Fair U.S. Treasury Treasury securities 164,684 26%

Issuer Investment Tyge Value  % obligations U.S. Treasury Treasury securities Dreyfus Treasury Money market mutual 57,591 9%

obligations $ 161,168 23% fund Federal Home Loan U.S. agency securities Morgan Stanley Flexible Repurchase 41,755 7%

Bank 118,116 17% Agreement Federal Farm Credit U.S. agency securities Federal Farm Credit U.S. agency securities 30,317 5%

Bank 110,524 16% Bank LAIF Local Agency Investment Fund 81,037 12% All guaranteed investment contracts have downgrade language that Wells Fargo Money Market Mutual requires collateral should credit ratings drop below certain levels.

Government Institution Funds 47,254 7%

Federal National U.S. agency securities Investment in the State of California Local Agency Investment Fund Mortgage Association 42,816 6% {LAIF):

Investments authorized by debt agreements The City is a voluntary participant in LAIF that is regulated by the California Government Code Section 16429 under the oversight of the Investment of debt proceeds held by bond trustees is governed by Treasurer of the State of California. The City's investment in LAIF is provisions of the debt agreements, rather than the general provisions carried at fair value in the accompanying financial statement based of the Government Code or the City's investment policy. The table below on the pro-rata share of the fair value of each participating dollar as identifies the investment types that are authorized for investments provided by LAIF. The balance available for withdrawal is based on held by bond trustees. The table also identifies certain provisions of the accounting records maintained by LAIF, which are recorded on an these debt agreements that address interest rate risk, credit risk, and amortized cost basis.

concentration of credit risk.

Regular LAIF accounts are subject to limitation of $75 million cap per Investment account and 15 transactions a month. Withdrawal can be made same Authorized Investment Maximum Percentage in One day but LAIF requires one day advanced notice for withdrawal amount Tyge Maturi:D£ Allowed Issuer $10 million or greater.

U.S. Treasury obligations None None None U.S. agency securities None None None Custodial credit risk Guaranteed investment contracts None None None Custodial credit risk for investments is the risk that the City will not Collateralized investment be able to recover the value of investment securities that are in the contracts None None None possession of an outside party. All securities owned by the City with Flexible repurchase the exception of LAIF and money market mutual funds are deposited agreements None None None in trust for safekeeping with a custodial bank different from the City's Money market mutual primary bank. Securities are not held in broker accounts. Funds held funds None None None by LAIF and money market mutual funds are held in the City's name.

LAIF None None None Custodial credit risk for investments held by bond trustees is the risk that the City will not be able to recover the value of investment securities that are in the possession of an outside party. All securities held by bond 7

CITY OF ANAHEIM trustees are in the name of the bond issue in trust for safekeeping with time distribution of its investment portfolio and analysis of cash flow the bond trustee, which is different from the City's primary bank. demand.

Interest rate risk Investments held by bond trustees are typically long-term securities which are not adversely affected by interest rate changes. Guaranteed Interest rate risk is the risk that changes in interest rates will adversely investment contracts for construction funds are usually limited to three affect the fair value of an investment. The City Treasurer mitigates this years or less. Information about the sensitivity of the fair values of the risk by investing in longer-term securities only with funds that are not City's investments (including investments held by bond trustees) to needed for current cash flow purposes and holding these securities market interest rate fluctuations is provided by the following table that to maturity. The City Treasurer uses the segmented time distribution shows the distribution of the City's investments by maturity at June 30, method to identify and manage interest rate risk. In accordance with 2022.

the City investment policy, the City Treasurer monitors the segmented City's investments (including investments held by bond trustees) to market interest rate fluctuations and the distribution of the City's investments by maturity at June 30, 2022:

Credit Rating Fair Value 12 months 13 to 24 25 to 36 37 to 60 Cash Equivalents & Investments (S&eLMoQg)(s) 6l30l2022 oc less Motbs Mo tbs Mo tbs Cash equivalents & investments controlled by City Treasurer:

U.S. treasury obligations N/A $ 161,167 $ 84,317 $ 9,970 $ 19,498 $ 47,382 U.S. agency securities AA+,Aaa 295,662 113,035 82,054 57,384 43,189 Medium term notes AA+,Aaa 38,571 14,974 4,938 14,162 4,497 Medium term notes AA,Aa2 4,999 4,999 Medium term notes AA-,Aa3 17,953 7,995 9,958 Medium term notes A+,A2 9,371 9,371 Medium term notes A,A2 14,129 9,618 4,511 Supra nationals AAA,Aaa 9,118 9,118 Supra nationals AA+,Aaa 11,496 11,496 Money market mutual funds Unrated 48,405 48,405 LAIF Unrated 81,037 81,037 Total cash equivalents & investments controlled by City Treasurer 691,908 354,762 106,920 110,033 120,193 Cash equivalents & investment controlled by bond trustees:

U.S. treasury obligations N/A 164,684 122,909 21,242 18,861 1,672 U.S. agency securities AA+.Aaa 39,234 1,454 20,503 9,580 7,697 Flexible repurchase agreements Unrated 57,001 57,001 Money market mutual funds Unrated 334,912 334,912 LAIF Unrated 18,923 18,923 Total cash equivalents & investments controlled by bond trustees 614,754 478,198 41745 28,441 66,370 Total cash equivalents & Investments $ 1,306,662 $ 832,960 $ 148,665 $ 138,474 $ 186,563 Fair Value Measurement: prices are not available, fair values are based on estimates using present The City categorizes its fair value measurements within the fair value value or other valuation techniques. Those techniques are significantly hierarchy established by generally accepted accounting principles. The affected by the assumptions used, including discount rates and fair value of a financial instrument is the price that would be received estimates of future cash flows. Accordingly, the fair value estimates may to sell an asset or paid to transfer a liability in an orderly transaction not be realized in an immediate settlement of the instrument.

between market participants at the measurement date. Fair value is The City groups its assets and liabilities measured at fair value in three best determined based upon quoted market prices. levels, based on the markets in which the assets and liabilities are traded However, in certain instances, there are no quoted market prices for and the reliability of the assumptions used to determine fair value. The the City's various financial instruments. In cases where quoted market three levels of the fair value hierarchy are as follows:

CITY OF ANAHEIM

• Levell of the fair value hierarchy are valued using prices quoted in NOTE 4 - ACCOUNTS RECEIVABLE, DUE FROM OTHER active markets for those securities for identical assets or liabilities CiOVERNMENTS, DUE FROM THE SUCCESSOR ACENCY, that the City has the ability to access at the measurement date. INTERFUND RECEIVABLE AND PAYABLE BALANCES, AND

• Level 2 of the fair value hierarchy are valued using a matrix pricing CERTAIN INTERFUND TRANSACTIONS:

technique utilizing market data including, but not limited to Accounts receivable benchmark yields, reported trades, and broker-dealer quotes.

Accounts receivable for the City's governmental and business-type Matrix pricing is the process of estimating the market price of activities, including the applicable allowance for uncollectible accounts a bond based on the quoted prices of more frequently traded at June 30, 2022, are as follows:

comparable bonds.

Less

• Level 3 inputs are unobservable inputs for the asset or liability. This Accounts Allowance for valuation is accomplished using management's best estimate of Receivable Uncollectible Total fair value, with inputs into the determination of fair value that Governmental activities:

require significant management judgment or estimation. The General Fund $ 37,238 $ (5,977) $ 31,261 level in the fair value hierarchy within which a fair measurement Housing Authority 237 (154) 83 in its entirety falls is based on the lowest level input that is Nonmajor governmental funds 2.497 (8) 2.489 significant to the fair value measurement in its entirety.

Internal service funds ------=2-'-=,5--=-0-=-9 ------'-'(9C.L.) ----=2=1 5...,.0=0 The City has the following recurring measurements as of June 30, 2022: Total govern menta I activities _ _ __;4..:::2-'-.4-'-8=1 _ _ __,_(6--',_14..;. 8_,_) -----'3=6....,,3...,.3=3 Business-type activities:

Fair Value Measu[em~ t Using Electric Utility 60,879 (8,628) 52,251 Quoted Prices in Water Utility 25,778 (1.577) 24,201 Active Significant Not Sanitation Utility 13,286 (3,158) 10,128 Markets for other Required Golf Courses 85 85 Identical Observable to be Convention. Sports &

Assetl:i lngyts leveled Investment by fair value level 6/30/2022 (Level 1) (Level 2) Entertainment Venues _ _ _ _5-'---,8_0_7 _ _ _ _(.__1_26__,_) 5,681 Debt securities: Total business-type activities _ _--=.10.::..:5:.L.8:c.::3=5 _ ___,_(=.c13::.:. 4. .:. 8:::..:9:..cl 92,346 U.S. Treasury Obligations $ 325,851 $ 325,851 Total accounts receivable, U.S. Agency Securities 334,896 334,896 net $ 148,316 '"'$=="'=(1=9=,6=3=7) $ 128.679 Suprantional 20,614 20,614 Medium Term Corporate Notes 85,023 85,023 Due from other governments LAIF 99.960 $ 99,960 Subtotal 866.344 $ 766,384 $ 99,960 Due from other governments for the City's governmental activities at June 30, 2022, are as follows:

Investments measured at cost-based:

Taxes Grants Other Total Flexible repurchase Governmental activities:

agreements 57,001 Money Market Mutual General Fund $ 22,272 $ 305 $ 3,166 $ 25,743 Funds 383317 Housing Authority 934 934 Subtotal 440,318 Nonmajor governmental funds - - - = 5 24,336 ----=2=3=0 24,571 Total due from other Total $1,306.662 governments $ 22,277 $ 25,575 $ 3.396 $ 51,248 7E

CITY OF ANAHEIM Revenues are reported net of estimated uncollectible amounts. Total lnterfund receivables and payables that are included in the fund estimated uncollectible amounts related to revenues of the current financial statements at June 30, 2022, are as follows:

period are as follows: lnterfund Receivable:

General fund $ 220 Nonmojor Internal General Housing governmental service Electric Electric Utility 782 Fund Authority funds funds Utility Total Water Utility 271 lnterfund Payable:

Sanitation Utility 1,314 Governmental Funds:

Convention, Sports & Entertainment Venues 31 General Fund $ 7,425 $ 33,031 $ 310 $ 40,766 Total $ 2,618 Nonmajor 1,133 $ 11,409 12,542 governmental funds Due from the Successor Agency Enterprise Funds:

At June 30, 2022, the amount due from the Successor Agency is $5,000. Water Utility 1,032 1,032 Convention, Sports &

Due to the extended period of time over which the receivables for Entertainment $ 7,301 7,301 the HUD loan agreements are to be collected, the City has recorded Venues expenditures at the time the loans were provided and deferred inflows Internal Service 39 39 of resources equal to the amount due in the non major special revenues Funds funds ($3,295) and the nonmajor capital project fund ($1,705). Total =$==7=,30=1 $ 8,558 $ 11.409 $ 33,031 =$==1,=38=1 $ 61,680

• On Aprill, 2003, the City and the former Anaheim Redevelopment All interfund balances at June 30, 2022 are generally short-term loans Agency entered into a Cooperation Agreement whereby the City to relieve temporary cash deficits in various funds, except the following assisted the Redevelopment Agency with the development of interfund balances that are expected to be repaid in more than one year:

Westgate utilizing $10,000 of funds from the HUD Section 108 loan program. The amount is due to the City by annual installment General Fund through June 2024. At June 30, 2022, the amount due is $1,705. In 2020, $33 million interfund loan was made between the General Fund

• On June l, 2010, the City and the former Anaheim Redevelopment and the General Benefits and Insurance Fund, an Internal Service Fund Agency entered into a Cooperation Agreement whereby the City of the City, to provide cash relief due to general tax revenue shortfall assisted the Redevelopment Agency with the rehabilitation of the resulting from the COVID-19 pandemic and the California Stay-At-Home historic Packing House site utilizing $7,000 of funds from the HUD order. The fund will be repaid over ten years at the City of Anaheim Section 108 $15,000 loan proceeds. The amount is due to the City Treasury Investment Portfolio earning rate.

by annual installment through June 2031. At June 30, 2022, the Electric Utility amount due is $3,295.

• In 2015, the Public Utility Customer Service Information System lnterfund receivable and payable balances Project was completed and placed in service. The Electric Utility Net internal balances between governmental activities and paid for the total cost of the project. The Water Utility portion of business-type activities of $25,386 are included in the government-wide the total cost is $3,484, payable in annual amounts of not less financial statements at June 30, 2022. than $344 beginning July 2016 until July 2024. The outstanding balance at June 30, 2022 is $1,032.

• The Public Utility, Public Works and Community Services Departments entered in various Memorandum of Understanding (MOU) whereby the Public Utility agreed to provide low-interest financial assistance to fund project costs in implementing resource efficiency measures in various City facilities, City Parks and City libraries. The funds will be repaid over five years.

CITY OF ANAHEIM

l. In October 2016, $309 was provided to fund the costs of the Housing Authority security light and photocell replacement resource efficiency

• In February 2018, the City and the Anaheim Housing Authority upgrading projects in various City parks. Interest rate is 0.65% (Authority) entered into a Cooperation Agreement whereby per annum. Monthly principal and interest payment is $5 the City and Housing Authority exchanged real property for the payable from unrestricted general fund resources. At June purpose of developing affordable housing. The market value of 30, 2022, the balance is $53. the Housing Authority property exceeded that of the City property

2. In November 2016, $231 was provided to fund the costs of the by $2,150; hence, the City agreed to provide $2,150 in future Park general office lighting and parking garage structure resource Fee Credits to the Housing Authority for the benefit of affordable efficiency upgrading projects. Interest rate is 0.65% per annum. housing development. At June 30, 2022, the park fee credit due Monthly principal and interest payment is $4 payable from to the Housing Authority is $1,133 from the Community Services unrestricted resources of the Municipal Facility Maintenance Facilities non major special revenue fund.

internal service fund. At June 30, 2022, the balance is $39.

• On July 30, 2019, the Authority purchased 1213 & 1227 South Claudina

3. In February 2019, $295 was provided for the security lighting Street ("Properties") from B&AINV l & 2 LLC at a purchase price upgrade projects in various City parks. The interest rate is 2.11% of $7,250. The Authority wishes to exchange the Properties for per annum, principal and interest payment is $5 payable from property owned by the City (yet to be determined) of equal value unrestricted general fund resources. At June 30, 2022, the and suitable for low and moderate income housing purposes.

balance is $110. Concurrently, the City entered into a Purchase & Sale Agreement dated July 30, 2019 with ATN Asset Holding Co. LLC (ATN) for

4. In August 2019, $296 was provided for the replacing, upgrading, the sale of Properties for $7,405 secured by a note and deed of retrofitting, and construction project materials, contract labor, trust for the entire amount. To facilitate the sale, the Properties and design services in various City-owned libraries. Interest rate were transferred from the Authority to the City. The City and the is 2.35% per annum. Monthly principal and interest payment is Authority entered into an Agreement and Escrow Instructions for

$5 payable from unrestricted general fund resources. At June Delayed Exchange of Real Property for a replacement property, 30, 2022, the balance is $147. yet to be determined. lnterfund due from and to in the amount of

$7,425 were reported in the Housing Authority and General Fund respectively with the General Fund reported a note receivable from ATN in the amount of $7,405.

8(

CITY OF ANAHEIM Certain interfund transactions The following interfund transfers are reflected in the fund financial statements at June 30, 2022:

Transfer n:

EnterRrise Funds Convention, Nonmajor Internal Sports &

General Housing governmental Service Electric Water Sanitation Entertainment ARTIC Fund Authori~ funds Fuods Utilit)l Uti!it)l Utilib£ Veoues Maoagem~nt Total Transfer Out:

General Fund $ 101,666 $ 5,740 $ 600 $ 5,706 $ 51 $ 113,763 Housing Authority $ 1,260 487 1,747 Nonmajor governmental 3,720 $ 2,557 130 $ 1,251 $ 128 4,000 11,786 funds Electric Utility 20,281 20,281 Water Utility 1,378 12 156 1,546 Sanitation Utility 2,747 42 2,789 Internal Service Funds 15 13 28 Total $ 29,386 $ 2,557 $ 102,337 $ 5,740 $ 1,422 $ 613 $ 128 $ 5,Z06 $ 4,051 $ 151,940 The net transfers between governmental funds and proprietary funds

• Transferof$5,740fromtheGeneral Fund to the Municipal Facilities is $6,984 which are primarily comprised of operational subsidies Maintenance, Internal Service Funds for deferred maintenance from enterprise funds to the General Fund and are offset by debt projects.

service subsidies to the ARTIC Management and Convention, Sports &

• Transfer of $600 from the General Fund to the Water Utility Entertainment Venues Funds.

Enterprise Fund per the result of Measure N in the November The City made the following major transfers during fiscal year ended 2014 election.

June 30, 2022:

• Transfer of $1,260 from the Housing Authority to the General Fund

• Transfer of $79,132 represents Lease Payment Measurement for the purchase of the Matrix/Midway right-of-way at fair market Revenues (LPMR) from the General Fund to the Anaheim Resort value, to complete the Miraflores multifamily project.

Improvements Debt Service Fund, which is held by the Trustee,

• Transfer of $2,451 of the federal HOME funds from the Grant see discussion on note 10 of the notes to the financial statements nonmajor Special Revenue Fund to the Housing Authority, per on page 88 of this report.

the Cooperation Agreement between the City and the Housing

• Transfer of $5,706 from the General Fund to the Convention, Authority, to provide resources for a HOME Loan Note to the Sports & Entertainment Venues Enterprise Fund for debt service. developer for the Miraflores Apartment multifamily project.

• Transfer of $7,977 from the General Fund to the Municipal

• Transfer of $4,000 from the Gas Tax nonmajor Special Revenue Facilities nonmajor Debt Service Fund for debt services. This Fund to the ARTIC Management Enterprise Fund for debt services amount includes $7,433 capitalized interest account balance from on the ARTIC land acquisition loan as discussed on note 10 of the the 2021 Working Capital bonds. notes to the financial statements on page 93 of this report.

• Transfer of $14,053 from the General Fund to the Other Capital

• Transfer of $1,251 from the Mello-Roos Projects non major Improvements nonmajor Capital Project Fund for Neighborhood Capital Projects Fund to Electric Utility Enterprise Fund for the projects ($10,000), Fire Station 4 improvements ($3,000), Public construction of various electric infrastructure in the Platinum Safety 800 Megahertz (MHz) communication debt service ($803); Triangle ARTIC project.

and various neighborhood capital improvement projects ($250).

• Transfers of $15,239 from the Electric Utility Enterprise Fund and

$2,747 from the Sanitation Utility Enterprise Fund to the General

~------------------------------------------------~------

CITY OF ANAHEIM Fund. As defined by City Charter, the transfer is equal to the The total amount of inflows of resources relating to leases recognized maximum of 4% of total operating revenues of the current fiscal in the current fiscal year are as follows:

year. Governmental Business-type

• Transfer of $5,042 from the Electric Utility Enterprise Fund and Activities Activities Total

$1,378 from the Water Utility Enterprise Fund to the General Fund. Lease revenue $ 1,384 $ 1,857 $ 3,241 The amount represents the City Council approved transfer ofl.5% Interest revenue $ 195 $ 177 $ 372 retail electric revenue and net water revenue of the prior fiscal year. The Fiduciary Fund - Successor Agency leases out its land and subleases a portion of the leased land to third parties. The Successor Agency's lease The net transfer of $13,056 from the business-type activities to receivables at June 30, 2022 were valued at $7,681. The deferred inflow of governmental activities in the government-wide Statement of Activities resources related to these lease receivables of $7,523 will be recognized consisted of a $360 transfer of capital assets from the Sanitation Utility as revenues over the term of the leases. The Successor Agency also business-type activities to the governmental activities and the net recorded an allowance for uncollected of $48 and included in the Lease transfers described above.

receivable balance on the Statement of Fiduciary Net Position.

Except for the transfers detailed above, there were no other significant

• Land leases totaling $7,633 net of an allowance for uncollectible transfers during the fiscal year that were either non-routine in nature or of $48; annual principal and interest lease payment rangers from inconsistent with the activities of the Fund making the transfer.

$78 to $500; at the Successor Agency's incremental borrowing rate of 1.75%; the remaining lease terms range from June 30, 2036 to NOTE 5- LEASE RECEIVABLES March 5, 2039.

The City leases out its office space, buildings and land for various The Successor Agency's total amount of inflows of resources relating to leases operational purposes to third parties. The City's lease receivables at June recognized in the current fiscal year are as follows:

30, 2022 were valued at $12,918 for Governmental Activities and $10,254 Fiduciary Funds for Business-type Activities. The deferred inflow of resources related Activities Lease revenue $ 375 to these lease receivables of $12,706 and $10,166, respectively, will be Interest revenue $ 89 recognized as revenues over the term of the leases.

The City's incremental borrowing rate of 1.75% (July 2021 rate) was NOTE 6 - ECONOMIC ASSISTANCE AGREEMENTS - TAX applied on these leases since there were no specific interest rates for ABATEMENTS (as defined by CASB Statement No. 77) each of the Lease Agreements.

As of June 30, 2022, the City has three active Economic Assistance Lease receivables of the governmental activities consist the following: Agreements (Agreements) to developers. These Agreements related to constructions of Hotels and retail spaces (Projects) within the City

• Office space and building totaling $660, annual principal and of Anaheim. There has been analysis of the feasibility gap between interest lease payment ranges from $6 to $133; the remaining the costs of developing and operating the Projects and the costs that lease terms range from April 18, 2023 to August 20, 2037; the Projects can finance and viably support. The feasibility gap for the

• Land leases totaling $12,258, annual principal and interest lease Projects is the economic assistance that the City has committed to payment ranges from $129 to $1,213, the remaining lease terms partially provide and is capped at $244,726, per the Agreements. As of range from December 31, 2022 to March 11, 2076. June 30, 2022, the City has made payments totaling $8,566.

Lease receivables of the Business-type activities consist the following: The economic assistance that the City provides under these three Agreements are in the form of tax abatements - rebates of transient

• Land leases totaling $10,254; annual principal and interest lease occupancy taxes (TOT) and sales tax that these Projects generated and payment ranges from $134 to $1,947, the remaining lease terms the City receives. These tax abatements are reported as reductions to range from January l, 2023 to March 28, 2039.

tax revenues in the General Fund. During fiscal year 2022, the City paid

$6,095 for TOT abatements and $291 for sales tax abatement.

CITY OF ANAHEIM In addition, the City entered into several economic assistance generate nor pay TOT, and as such no economic assistance is required agreements to provide assistance to partially fill the feasibility gap of the by the City at this time. Once the hotels are constructed and operated four-diamond hotel developments within the City. Provision of economic at the required quality level, the City will use an amount equal to 70%

assistance is contingent upon completion of construction of the hotels, of the TOT generated and paid to the City to fund the corresponding the commencement of and continued operations as a four-diamond economic assistance. All Agreements have terms of twenty years and quality hotel, and the generation of and payment to the City of TOT. The are capped with maximum amount of economic assistance payments.

contemplated hotels have yet to be built, and therefore cannot operate,

CITY OF ANAHEIM NOTE 7 - CAPITAL ASSETS Capital asset activities for the year ended June 30, 2022, were as follows:

Beginning Transfer In Ending Balance, as restated Additions (Out) Deletions Balance Governmental activities:

Nondepreciable assets:

Land $ 693,257 $ 967 $ 694,224 Construction in progress 41840 29704 $ (27,731) $ (139) 43 674 Total 735,0~7 30671 (27 731) (139) 737 898 Depreciable assets:

Buildings, structures and improvements 428,518 3,671 7,799 (263) 439,725 Machinery and equipment 142,200 5,364 183 (2,478) 145,269 Infrastructure 954,740 2,019 20,109 (40) 976,828 Right-to-use leased Land 2,926 2,926 Right-to-use leased Buildings 53 53 Right-to-use leased Equipment 1849 834 2 683 Total 1530 286 11888 28091 (2 781) 1567 484 Total assets 2 265 383 42 559 360 (2,920) 2 305 382 Less accumulated depreciation for:

Buildings, structures and improvements (204,813) (16,670) 263 (221,220)

Machinery and equipment (95,915) (7,416) 2,444 (100,887)

Infrastructure (499,879) (23,464) 40 (523,303)

Right-to-use leased Land (72) (72)

Right-to-use leased Buildings (38) (38)

Right-to-use leased Equipment (853) (853)

Total accumulated depreciation (800 607) (48 513) 2 747 (846,373)

Total governmental activities capital assets, net $ 1,464,776 $ (5,954} $ 360 $ (173} $ 1,459,009 Business-type activities:

Nondepreciable assets:

Land $ 93,331 $ 93,331 Construction in progress 198 665 $ 118,315 $ (148,232) $ (1153) 167 595 Total 291996 118 315 (148 232) (1,153) 260 926 Depreciable assets:

Buildings, structures and improvements 1,034,248 2,291 1,907 (11) 1,038,435 Utility plant 2,014,573 3,493 145,890 (7,108) 2,156,848 Machinery and equipment 52,574 773 75 (425) 52,997 Right to use leased land 3,200 3,200 Right to use leased equipment 266 266 Total 3104861 6 557 147 872 (7,544} 3 251 746 Total assets 3 396 857 124 872 (360} (8697} 3 512 672 Less accumulated depreciation for:

Buildings, structures and improvements (359,188) (21,071) 11 (380,248)

Utility plant (831,728) (61,427) 7,108 (886,047)

Machinery and equipment (30,736) (3,877) 423 (34,190)

Right-to-use leased Land (260) (260)

Right to use leased equipment (;!.19) (68} L!.8Zl Total accumulated depreciation (1,221 ZZll (86,Z03l Z,542 (1,300,932}

Total business-type activities capital assets, net $ 2,175,086 $ 38,169 $ (360} $ (1,155} $ 2,211,740

CITY OF ANAHEIM Depreciation expense was charged to functions/programs of the City workers' COIT)pensation related benefits, self-funded general during fiscal year 2022 as follows: liability claims, commercial insurance purchases, and alternative risk financing vehicles. Revenues of the Insurance Fund are derived Governmental activities: from cost-allocation charges to City departments using estimates of anticipated risk-transfer costs, new losses, payments on existing claims, General government $ 83 and reserve development on known claims. In addition, the Insurance Police 1,915 Fund receives interest income from reserves.

Fire 2,054 Housing & Community Development 2,125 At June 30, 2022, the City was funded at an actuarially acceptable level Planning . 45 for self-funded retention for workers' compensation and general liability Public Works 24,533 claim exposures (with retention levels of $2,000 per occurrence for Community Services 5,689 workers' compensation claims and $1,000 per occurrence for general liability claims). Above these retained levels, the City's potential liability is Convention, Sports and Entertainment 7,035 covered through various commercial insurance and intergovernmental Capital assets held by the City's internal service funds are risk pooling programs (collectively, "Insurance"). Settled claims have charged to the various functions based on their usage of not exceeded total Insurance in any of the past three years, nor does the assets 5,034 management believe that there are any pending claims that will exceed Total depreciation expense - governmental activities $ 48,513 total Insurance coverage.

The unpaid claims liability included in the Insurance Fund is based Business-type activities:

on the results of actuarial studies .and includes amounts for claims Electric Utility $ 48,247 incurred-but- not-reported, known-claim development, and allocated Water Utility 13,440 loss adjustment expenses. Claims liabilities are calculated using a Sanitation Utility 2,920 discount rate of 2.25% and consider the effects of inflation, multi-year Golf Courses 682 loss development trends, and other economic and social factors. It is Convention, Sports & Entertainment Venues 19,043 the practice of the City to obtain full annual actuarial studies annually ARTIC Management 2,371 for its retained levels for general liability and workers' compensation Total depreciation expense - business-type activities $ 86,703 exposures. "Premiums" are charged by the Insurance Fund using allocation methods that include actual costs, trends in claims experience Successor Agency and applicable exposure bases.

Changes in claims liability of the General Benefits and Insurance Fund Right to use leased assets for the Successor Agency for the fiscal year related to the governmental funds that are reported in the governmental ended June 30, 2022 were as follows: activities in the government-wide Statement of Net Position in fiscal years 2022 and 2021 were as follows:

Beginning 2022 2021 Balance Ending as restated Addition Deletion Balance Right to use leased land $ 19,613 $ 19,613 Claims liability at beginning of year $ 59,119 $ 58,548 Less accumulated depreciation $ (729) (729) Current year claims and changes in estimates 13,700 16,459 Right to use leased land, net $ 19,613 $ (729) $ $ 18,884 Claims payments (14,300) (15,888)

Claims liability at end of year $ 58,519 $ 59,119 NOTE 8 - SELF INSURANCE: Above the retained limit of $2,000 per occurrence for workers' compensation losses, the City purchases excess coverage, utilizing both The Insurance Fund (a function of the General Benefits and Insurance commercial insurance and an intergovernmental risk pooling program Fund), an internal service fund, is used to account for self-funded (PRISM), to statutory limits.

• CITY OF ANAHEIM Above the retained limit of $1,000 per occurrence for liability losses1 the risk- financing programs. ACCEL does not have any debt outstanding.

City maintains excess coverage for all City operations to $55,000 per For a copy of ACCEL's separate financial statements, contact the Finance occurrence, excluding helicopter operations for which the City purchases Director of the City.

$50,000, per occurrence, of commercial aviation liability insurance (on a first-dollar basis). The first layer of excess liability loss coverage is procured NOTE 9 - REVOLVINC LINE OF CREDIT throug~ the Authority for California Cities Excess Liability (ACCEL), a joint On January 1, 2021, the Public Utility Department renewed the Revolving powers insurance authority, formed in 1986, pooling catastrophic general, Credit Agreement (Agreement) with Wells Fargo Bank, National automobile, personal injury, and public officials errors and omissions Association for a maximum note amount not to exceed $100 000 of liability losses among twelve California cities, through both risk-sharing which $86,000 is made available for the Electric Utility and $14,000 and commercial insurance joint-purchase arrangements. The City, for the Water Utility. The note was renewed with the same three year therefore, continues to maintain some limited excess liability risk sharing term with a maturity date of December 31, 2023, at variable interest exposure, above $1,000 per occurrence, directly with ACCEL. This pooled rates based on the LIBOR Daily Index Rate and a spread. The annual coverage has exposure from the run-out periods from prior years in the commitment fee is 0.30% of the total note amount of $100,000. The ACCEL retained layer of $4,000 or $9,000 in excess of $1,000. Each ACCEL current U.S. Dollar LIBOR publication is scheduled to end by June 30, member's share of pooled losses is based on a retrospectively-rated 2023. The Public Utility will transition from using the LIBOR Rate to the risk-sharing formula which includes, but is not limited to, exposure and Secure Overnight Financial Rate (SOFR) at the earlier of June 30, 2023 loss experience factors.

or when Wells Fargo Bank makes modifications to the Agreement to In order to provide funds to pay claims, ACCEL collects an annual deposit replace reference to existing LI BOR rates to SOFR.

from each member. The deposits are credited with investment income The purpose of the Agreement is to provide temporary financing for at the rate earned on ACCEL's investments. As of June 30, 2022, ACCEL's the costs of acquisition and construction to capital improvements of cash and investments totaled $59,970. The City has no specific equity the Utility's electric and water systems. There was no draw from the interest in ACCEL. Deposits provided to ACCEL by the City are expensed Agreement during fiscal year 2022.

when paid by the General Benefits and Insurance Fund.

ACCEL is responsible for deciding the risks it will underwrite, the monitoring, and handling of large claims, and arranging excess BE

CITY OF ANAHEIM NOTE 10 - LONG-TERM DEBTS:

The following is a summary of changes in long-term debts reported in the government-wide financial statements for the year ended June 30, 2022:

Dune Beginning Additions/ Reductions/ Ending Within One Balance Proceeds Refunded Pa)lments Balance Year Governmental activities:

Bonds payable:

City lease revenue $ 428,243 $ 23,546 $ (21,195) $ (15,586) $ 415,008 $ 15,796 Accretion 225,874 17,468 (18,063) 225,279 19,217 Unamortized bond discount/premium, net 30 040 {4,160} 25 880 Total 684157 41014 {21,195} {37,809} 666167 35 013 Notes and loans payable from direct borrowing:

City 16,403 1,500 (2,982) 14,921 3,144 Internal Service Funds 63 6 500 {lll 6,552 1,251 Total 16466 8000 {2,993} 21473 4395 Leases (note 12):

City 2,979 (64) 2,915 39 Internal Service Funds 1849 834 {1,223} 1460 886 Total 4828 834 {1,287} 4375 925 Governmental activities total 705 451 49848 {21,195} {42,089} 692 015 40333 Business-type activities:

Bonds payable:

Electric Utility $ 645,425 $ 310,640 $ (195,545) $ (33,065) $ 727,455 $ 36,295 Water Utility 186,750 155,815 (103,060) (5,375) 234,130 4,745 Sanitation 42,225 (1,295) 40,930 1,355 Convention, Sports & Entertainment Venues 210,166 226,704 (204,063) (6,103) 226,704 4,047 Unamortized bond discount/premium, net 88442 34614 {47,753} 75 303 Total 1173 008 727 773 {502,668} {93,591} 1,304,522 46442 Notes and loans payable from direct borrowing:

Electric Utility 180 (31) 149 32 Sanitation Utility 117 (20) 97 21 Golf Courses 53 117 (28) 142 35 Convention, Sports and Entertainment Venues 16 (2) 14 3 ARTIC Management 6000 {4,000} 2 000 2000 Total 6366 117 {4,081} 2402 2091 Leases (note 12):

Electric Utility 3,200 (278) 2,922 264 Golf Courses 137 {62} 75 64 Total 3 337 {340} 2997 328 Interest payable ARTIC Management 3 669 78 3 747 Total 3 669 78 3 747 Business-type activities total 1,186,380 727968 {502,668} {98,012} 1313 668 48861 Government-wide total $ 1,891,831 $ 777,816 $ {523,863} $ {140,101} $ 2,005,683 $ 89,194

CITY OF ANAHEIM Bond ratings for the City's revenue bonds are as follows: Bonds Payable - City Standard & Lease payment measurement revenues (LPMR)

Poor's Fitch Ratings Moody's 1997 A Lease Revenue Bonds AA A- A2 In February 1997, the Anaheim Public Financing Authority sold $510,427 of lease revenue bonds to finance the construction of public improvements 1997 C Lease Revenue Bonds AA Unrated Al in The Anaheim Resort. In June 2007, the Authority sold $256,320 of lease 2019 Senior Lease Revenue Bonds BBB A~ Al revenue bonds to defease $248,335 of the 1997 lease revenue bonds. In 2021 A Lease Revenue Bonds AA Unrated A2 April 2019, the Authority sold $175,565 of Senior Lease Revenue Refunding 2021 Working Capital Bonds AA Unrated Al Bonds to defease the $209,065 outstanding balance of the 2007 Al and A2 Electric Revenue Bonds AA- AA- Aa3 bonds. On January 13, 2020, the Authority transferred $58,600 from the Water Revenue Bonds AA- AA+ Unrated LPMR Special Reserve Fund to the escrow bank to defease a portion of Sewer Revenue Bonds AA+ Unrated Unrated the outstanding lease revenue Capital Appreciation Bonds 1997 series C with the maturity value at defeasance of $84,270 maturing on September GOVERNMENTAL ACTIVITIES:

l, 2035, September l, 2036 and March l, 2037.

BONDS PAYABLE The bonds are special obligations of the Authority payable solely from At June 30, 2022, bonds payable consisted of the followings: lease payments to be made by the City to the Authority for the use and Range of occupancy of the leased premises. Debt service requirements to maturity Interest for these lease revenue bonds are paid from lease payment measurement Rates Authorized Date Final at Issue and Outstanding revenues (LPMR) measured by portions of the three largest revenue Issued Maturity Date Issued 6/30/2022 sources (TOT, sales tax, and property tax). Lease payments made by the 1997 Anaheim Lease City under the lease agreement are equal to LPMR, which in general Revenue Bonds 2/1/1997 3/1/2037 4.5%-6.1% $ 251,182 $ 91,977 means the sum of an amount equal to the following will be transferred Accretion 225,279 in the a debt service fund:

2019 A Anaheim Senior l) 3% of the 15% TOT rate (i.e. 20% of the total TOT revenue) for all hotel Lease Revenue Refunding Bonds 4/30/2019 9/1/2036 5.0%- 5.0% 169,065 160,730 properties in the City, excluding certain Disney properties constructed 2021 Lease Revenue prior to 2009; Refunding Bonds 12/14/2021 7/1/2046 0.9%- 3.3% 23,546 23,546

2) 100% of the TOT revenues from certain Disney properties constructed 2021A Lease Revenue Bonds prior to 2009 over the 1995 base (adjusted annually by the change in CPI)

(Working Capital with a minimum of 2% increase; Financing) 6/22/2021 7/1/2051 0.6%- 3.1% 138,755 _ _ _1_38_,_75_5 Total 640 287 3) 100% of sales tax revenues from certain Disney properties over the Unamortized bond premium/discounts, net 25.880 1995 base (adjusted annually by the change in CPI) with a minimum 2%

Total governmental activities bonds $ 582,549 =$======6=662 .=16=7 increase;

4) 100% property tax revenues from certain Disney properties in excess of The bond indentures of the respective bond issue contain provisions the 1995 base property tax amount, adjusted annually by 2%.

of l) in the event of default, the entire outstanding principal shall become due and payable; 2) requirement of maintaining fund reserve The City is not required to pay any additional sums should the LPMR fall of maximum annual debt service or a Bond Debt Reserve Insurance short of the amount required to pay debt service on the bonds. The Walt Policy equal to the debt service reserve requirement. Disney Company provided a guarantee to the bond insurer to enable the issuer to obtain municipal bond insurance.

LPMR began on January l, 2001, with the first payment made to the trustee on July 7, 2001, for the LPMR generated during the period January through June 2001. Subsequent to that date, LPMR is collected and BE

CITY OF ANAHEIM remitted to the trustee monthly. During the fiscal year ended June 30, The City also purchased a Surety Policy and a Reserve Policy in satisfaction 2022, $65,430 was remitted to the trustee. of the bond reserve requirements. The Reserve requirement, as of the date of any calculation, an amount equal to the least of l) 10% of the Debt service requirements to maturity for the 1997 Anaheim Lease proceeds of the issue, 2) the maximum Annual Debt Service on the Revenue Bonds and the 2019 Anaheim Lease Revenue Refunding Bonds o,utstanding bonds, and 3) 125% of the average Annual Debt Service on to be paid by the Anaheim Resort Improvements Debt Service Fund from the Outstanding Bonds.

future LPMR are as follows:

Debt service requirements to maturity for the 2021 Anaheim Lease Fiscal Year Ending 6L30 ecirn;;ipgl lotecest Iotal Revenue Bonds to be paid from the capitalized interest funds for the 2023 $ 15,693 $ 28,536 $ 44,229 2024 16,361 29,161 45,522 first three years and from unrestricted general fund revenues thereafter 2025 17,089 29,759 46,848 are as follows:

2026 17,800 30,376 48,176 2027 18,404 31,045 49,448 Fiscal Year Ending 6/30 eci cipal lotecest Iotgl 2028-2032 79,498 167,726 247,224 2023 $ 3,656 $ 3,656 2033-2037 87,862 134172 222,034 2024 3,656 3,656 Total 252,707 450,775 703,481 2025 $ 3,650 3,644 7,294 Unamortized bond premiums 25,880 25,880 2026 3,675 3,615 7,290 Total bonds $ 278,587 $ 450,775 $ 729,361 2027 3,710 3,576 7,286 2028-2032 19,420 16,958 36,378 Included in interest is $225,279 related to accretion on capital 2033-2037 21,590 14,701 36,291 appreciation bonds. 2038-2042 24,680 11,545 36,225 Lease revenue bonds - City 2043-2047 28,640 7,500 36,140 2048-2052 33 390 2669 36059 The City purchased a Surety Policy and a Reserve Policy in satisfaction of Total $ 138,755 $ 71,520 $ 210,275 the bond reserve requirements. Debt service requirements to maturity for the City's lease revenue bonds to be paid from unrestricted revenues of the Municipal Facilities Debt Service Fund are as follows: NOTES AND LOANS PAYABLE Fiscal Year Ending 6/30 Principal Interest Total Notes and loan payable from direct borrowing contain provision that in 2023 $ 103 $ 696 $ 798 the event of default, the entire outstanding principal amount are due 2024 729 661 1,390 and payable. Additionally, the City had pledged certain real properties, 2025 737 652 1,389 park land, and a portion of its annual Community Development Block 2026 748 641 1,389 2027 760 628 1,388 Grants entitlement as securities interest for the HUD Section 108 2028-2032 4,053 2,878 6,931 guaranteed loans. At June 30, 2022 notes and loans payable are as 2033-2037 4,631 2,282 6,913 follows:

2038-2042 5,418 1,485 6,903 2043-2048 6 367 533 _ __.,,6=9=0=0 Notes and Loans Payable - City Total Bonds $ 23,546 $ 10,456 ~$=====3~4~,0,';;0~2 HUD Section 108 guaranteed loans payable Lease Revenue Bonds - Working Capital Financing In May 2003, the City entered into an agreement with HUD, making On June 10, 2021, the Anaheim Public Financing Authority sold $138,755 available $10,000 to provide financial assistance related to the of Lease Revenue Bonds (Working Capital Financing), Series 2021 A, at development of Westgate on a former landfill site located at the par. Proceeds of the bonds provide financing for projected cash flow northeast corner of Beach Boulevard and Lincoln Avenue. The loan deficits attributable to significant declines in General Fund revenues is payable from the receipts of the Successor Agency receivable. The for fiscal year 2020-2021 through 2023-2024 impacted by the COVID-19 outstanding balance at June 30, 2022 was $1,705. The loan bears interest pandemic. The bonds will be repaid from unrestricted general fund ranging from 1.74% to 5.97% and is payable over 20 years beginning on revenues. February l, 2005, until August l, 2023. Loan debt service requirements to maturity are as follows:

CITY OF ANAHEIM Fiscal Year Ending 6/30 Principal Interest Total Loan debt service requirements to maturity are as follows:

2023 $ 975 $ 72 $ 1,047 2024 ~---7_3_0 22 752 Fiscal Year Ending 6/30 Princieal Interest Total Total notes and loans $ 1,705 $ 94 $ 1.799 2023 $ 755 $ 60 $ 815 2024 769 46 815 In March 2010, the City entered into an agreement with HUD, making 2025 783 31 814 available $15,000 to fund the acquisitions of the Orange County Family 2026 737 17 754 Justice Center and Miraloma Park site, construction of the Thornton 2027 343 3 346 Brady storm drain and the rehabilitation of the historic Packing House site. The loan is payable from the Community Development Block Grant Total notes and loans $ 3,387 $ 157 $ 3,544 yearly entitlement and from the receipts of the Successor Agency receivable. The outstanding balance of the loan at June 30, 2022, was Ambulance Loan Payable

$7,355. The loan bears interest ranging from 1.74% to 3.97% and is On January 15, 2020, the Agreement with Banc of America Public Capital payable over 20 years beginning on February l, 2011 through August l, Corp. provided $799 financing for the acquisition of five (5) ambulances, 2030. Loan debt service requirements to maturity are as follows:

payable over 7years and bearing interest at 1.69% per annum. Principal Fiscal Year Ending 6/30 e[incipal lote[est Total and interest payment of $121 are due annually beginning on January 15, 2023 $ 780 $ 292 $ 1,072 2022 until January 15, 2028.

2024 805 261 1,066 2025 835 229 1,064 On March 4, 2022, the Agreement provided $1,500 financing for the 2026 865 194 1,059 acquisition of additional eight (8) ambulances, payable over 7 years and 2027 900 157 1,057 bears interest at 2.48% per annum. Principal and interest payment of 2028-2031 3,170 235 3,405 $117 are due semi-annually beginning on September 7, 2022 until March Total notes and loans $ 7,355 $ 1,368 $ 8,723 4, 2029.

800 Megahertz Communication Equipment Debt services of the ambulance loans will be funded from the unrestricted revenue sources of the Fire & Rescue Department's On November 30, 2015, the City entered into a Master Equipment Lease/

in-house Emergency Medical Transportation Program revenues. The Purchase Agreement (Agreement) with Banc of America Public Capital outstanding balance of the loans atJune30, 2022 was $2,190. Loan debt Corp., to finance the acquisitions and replacement of the City portion service requirement to maturity are as follows:

of the 800 Megahertz (MHz) Countywide Coordinated Communications System (CCCS). The CCCS project includes a plan for replacement of Fiscal Year Ending 6/30 Principal Interest Total three main components: Backbone Equipment, Subscriber Equipment, 2023 $ 309 $ 48 $ 357 and Dispatch Consoles. 2024 316 41 357 2025 323 34 357 On November 30, 2015, the Agreement provided $1,100 financing for 2026 330 27 357 the acquisition of a portion of the mobile radio equipment payable over 2027 337 19 357 10 years and bears interest of 1.98% per annum, Principal and interest 2028-2031 575 16 591 payments of $61 are due semi-annually beginning on May 30, 2016, until Total notes and loans $ 2,190 $ 185 $ 2,375 November 30, 2025. The outstanding balance at June 30, 2022 was $410.

Technology Equipment Loan On November 30, 2016, the Agreement provided $6,840 financing for the acquisition of the remaining radio equipment payable over 10 years On March 4, 2022, the Agreement with Banc of America provided $6,500 and bears interest of 1.87% per annum. Principal and interest of $377 financing for the acquisition of various Technology Equipment. The loan are due semi-annually beginning on May 30, 2017, until November 30, has a term of 5 years and bears interest at 2.36% per annum. Principal and 2026. Amount of this financing allocated to the governmental activities interest of $693 are due semi-annually beginning on September 4, 2022 totaled $6,235. The outstanding balance at June 30, 2022 was 2,977. until March 4, 2027. Debt services of the loan will be funded from the unrestricted revenue sources of the Information and Communication 9(

CITY OF ANAHEIM Services internal service funds. The outstanding balance of the loan at BUSINESS-TYPE ACTIVITIES:

June 30, 2022 was $6,500. Total debt services to maturity are as follows:

BONDS PAYABLE At June 30, 2022, bonds payable consisted of the following:

Range of IT Egui12ment-Purchase Interest Authorized Date Rates at and Outstanding Fiscal Year Ending 6[30 Princii;1gl Interest Totgl Issued Maturitll Issue Date Issued 6L3ot2022 2023 $ 1,240 $ 146 $ 1,386 Electric Utility 2024 1,269 117 1,386 2012 Revenue Bonds 10/1/2012 10/1/2031 3.1%- 5.0% $ 47,200 $ 47,200 2025 1,299 87 1,386 2014 Revenue Bonds 10/8/2014 10/1/2025 2.0%- 5.0% 109,350 43,355 2026 1,330 56 1,386 2015B Revenue Bonds 10/1/2016 10/1/2035 3.0% - 5.0% 92,865 61,835 2027-2030 1,362 24 1,386 Total notes and loans $ 6,500 $ 430 $ 6,930 2017A Revenue Bonds 12/21/2017 10/1/2028 5.0%- 5.0% 42,955 38,855 2017B Revenue Bonds 12/21/2017 10/1/2023 5.0%- 5.0% 9,205 9,205 2020A Revenue Bonds 3/4/2020 10/1/2050 5.0%- 5.0% 59,215 58,345 Community Learning Center 12ro12erty acguisition loan 12ayable 2020B Revenue Bonds 3/4/2020 10/1/2034 1.6%- 3.0% 121,795 115,680 On September l, 2017, the City entered into an Agreement with Los Altos 2020C Revenue Bonds 3/4/2020 10/1/2045 5.0%- 5.0% 42,340 42,340 V. LP (Seller) for the purchase and sale of the former Northgate Market 2022A Revenue Bonds 4/28/2022 10/1/2052 5.0%- 5.0% 156,530 156,530 site located at 718-744 N. Anaheim Boulevard for the development 2022B Revenue Bonds 4/28/2022 10/1/2034 5.0%- 5.0% 74,255 74,255 of a Community Learning Center. The purchase price of the property 2022D Revenue Bonds 4/28/2022 10/1/2033 2.3%-4.1% 79,855 79,855 is $4,750 of which $2,500 was paid in cash from resources of the Total 727,455 Community Development Block Grant with the balance of $2,250 will be Unamortized bond premiums/discounts, net 55,231 payable to Seller over five years at an annual interest rate of 5%. Principal Total Electric Utility 782,686 and interest of $43 are due on the first of each month commencing on Water Utility March 1, 2018 until February l, 2023. The annual loan payment will be 2015 Revenue Bonds 4/21/2015 10/1/2040 4.0%- 5.0% $ 44,725 $ 44,725 funded from the restricted resources of the Community Development 2020A Revenue Bonds 3/4/2020 10/1/2025 5.0%- 5.0% 2,680 2,680 Block Grant yearly entitlement. The outstanding balance of the loan at 20208 Revenue Bonds 3/4/2020 10/1/2038 1.6%-3.0% 32,445 30,910 June 30, 2022 was $336. Total debt service to maturity are as follows:

2022A Revenue Bonds 4/12/2022 10/1/2052 5.0% - 5.0% 44,955 44,955 Fiscal Year Ending 6/30 Principal Interest Total 2022B Revenue Bonds 4/12/2022 10/1/2049 2.5%-4.3% 79,260 79,260 2023 $ 336 $ 8 $ 344 2022C Revenue Bonds 4/12/2022 10/1/2040 5.0%- 5.0% 31,600 31,600 Total 234,130 Total notes and loans $ 336 $ 8 $ 344 Unamortized bond premiums/discounts, net 13,675 Total Water Utility 247,805 Sanitation Utility 2018 Revenue Bonds 1/25/2018 2/1/2048 5.0%- 5.0% $ 45,705 $ 40,930 Unamortized bond premium 6,397 Total Sanitation Utility 47,327 Convention, Sports and Entertainment Venues 2021 Revenue Bonds Bonds 12/15/2021 2/1/2048 0.9%- 3.3% $ 226,704 $ 226,704 Total Convention, Sports and Entertainment Venues 226,704 Total business-type activities bonds $1,343 639 $ 1,304 522 91 I

CITY OF ANAHEIM Bonds Payable - Electric Utility and are payable through 2053. At June 30, 2022, the annual principal and interest payments on the bonds were 51.0% of net revenues. Principal The City's Electric Utility has pledged future electric revenues, net and interest paid for the current fiscal year and total net revenues were of certain costs, to repay a total of $1,030,350 outstanding long-term

$13,475 and $26,436 respectively.

obligations, principal and interest. Proceeds from bonds provided financing for various capital improvements, primarily distribution The bond indentures of the respective Water Revenue Bonds contain assets. The Electric Utility's bonds are payable solely from electric provisions of 1) in the event of default, the entire outstanding principal customer net revenues and are payable through 2053. At June 30, 2022, shall become due and payable; 2) requirement of a fund reserve for the annual principal and interest payments on the bonds, were 49.71% renewals and replacements in an amount equal to a maximum of 2%

of net revenues. Principal and interest paid for the current fiscal year of depreciated book value of the Water Utility plant in service; and 3) and total net revenues were $60,840 and $122,398 respectively. requirement of a minimum debt service coverage ratio of 1.0.

The bond indentures of the respective Electric Revenue Bonds contain Bond debt service requirements to maturity for the Water Utility to be provisions of 1) in the event of default, the entire outstanding principal paid from revenues are as follows:

shall become due and payable; 2) requirement of a fund reserve for the maximum annual debt service; 3) requirement of a fund reserve for Fiscal Year Ending 6/30 Princieal Interest Total renewals and replacements in an amount equal to a maximum of 2% 2023 $ 4,745 $ 9,216 $ 13,961 of depreciated book value of the Electric Utility plant in service; and 4) 2024 6,990 9,203 16,193 requirement of a minimum debt service coverage ratio ofl.25. 2025 7,270 8,926 16,196 Bond debt service requirements to maturity for the Electric Utility to be 2026 7,575 8,620 16,195 paid from revenues are as follows: 2027 7,865 8,336 16,201 2028-2032 43,520 37,477 80,997 Fiscal Year Ending 6/30 Principal Interest Total 2033-2037 52,295 28,719 81,014 2023 $ 36,295 $ 29,847 $ 66,142 2038-2042 52,360 17,176 69,536 2024 37,755 29,301 67,056 2043-2047 29,735 8,437 38,172 2025 44,510 27,560 72,070 2048-2052 18,955 2,733 21,688 2026 46,395 25,672 72,067 2053 2,820 71 2,891 2027 43,655 23,688 67,343 Total 234,130 138,914 373,044 2028-2032 248,575 87,489 336,064 Unamortized bond 2033-2037 160,685 40,497 201,182 2038-2042 38,280 22,773 61,053 premiums/discount, net 13,675 13,675 2043-2047 42,205 12,241 54,446 Total bonds $ 247,805 $ 138,914 $ 386,719 2048-2052 26,225 3,756 29,981 Bonds Payable - Sanitation Utility 2053 --~2=,8~7~5 ---~7~2 --~2=9~4~7 Total 727,455 302,895 1,030,350 The City's Sanitation Utility has pledged future sanitation system net Unamortized bond revenues to pay a total of $65,279 outstanding revenue bonds issued in premiums/discounts, net 55,231 55,231 January 2018. Proceeds from the bonds provided financing for capital Total bonds $ 782,686 $ 302,895 $ 1,085,581 improvements to the sanitation sewer collection system. The bonds are payable solely from system net revenues and are payable through Bonds Payable - Water Utility February 2048. At June 30, 2022, total principal and interest payments The City's Water Utility has pledged future revenues from the sale of on the bonds were 49.9% of net revenues. Total principal and interest water, net of certain costs, to repay a total of $373,044 for outstanding paid and total system net revenues for the current fiscal year were long-term obligations, principal and interest. Proceeds from bonds $3,406 and $6,827 respectively.

provided financing for various capital improvements, primarily The bond indenture contains a provision that in the event of default, the distribution assets. The bonds are payable solely from water net revenues entire outstanding principal shall become due and payable.

CITY OF ANAHEIM Bond debt service requirements to maturity for the Sanitation Utility to NOTES AND LOANS PAYABLE be paid from revenues are as follows:

Note Payable - ARTIC Management Fiscal Year Ending 6£30 Princieal Interest Total Anaheim Regional Transportation lntermodal Center (ARTIC) Land 2023 $ 1,355 $ 2,047 $ 3,402 Acquisition Loan payable 2024 1,430 1,979 3,409 In July 2012, the City entered into an agreement with the Orange County 2025 1,495 1,907 3,402 Transportation Authority (OCTA) for the Purchase and Sale of a 13.58 2026 1,575 1,833 3,408 acres real property located at 1750 South Douglass Road in Anaheim. The purchase price for the site is $32,500. The City paid $1,000 at the close of 2027 . 1,645 1,754 3,399 escrow and the remaining $31,500 will be payable to OCTA over 13 years 2028-2032 9,575 7,447 17,022 and bears 2% simple interest per annum. Annual principal payments are 2033-2037 12,220 4,801 17,021 due on or before July 10th each year commencing 2012. The payment of 2038-2042 7,455 1,820 9,275 accrued interest is deferred until equal payments of $1,883 are due and 2043-2047 3,395 722 4,117 payable on or before July 10, 2024 and July 10, 2025. The loan is payable 2048-2049 785 39 824 with the Anaheim Tourism Improvement Special District (ATID) special Total 40,930 24,349 65,279 assessments and Measure M2 Local Fair Share funds. OCTA will retain Unamortized bond premium 6,397 6,397 payments from Anaheim's "Local Fair Share" funds allocated by OCTA under Measure M2 each year until the final payment is made on July 10, Total bonds $ 47,327 $ 24,349 $ 71,676 2025. At June 30, 2022, accrued interest payable for the ARTIC loan was Bonds Payable - Convention, Sports and Entertainment Venues $3,747 . The City may elect to provide alternative funding from other City funds for transportation related purposes. At June 30, 2022, the The bond indenture contains a provision in the event of default, the entire outstanding balance of the ARTIC loan was $2,000. Loan debt service outstanding principal shall become due and payable, and the requirement of maintaining a fund reserve equal to the maximum of annual debt service. requirements to maturity are as follows:

The City purchased a Surety Policy and a Reserve Policy in satisfaction of the bond reserve requirement. Bond debt service requirements to maturity for the Fiscal Year Ending 6£30 Princigal Interest Total Convention, Sports and Entertainment Venues to be paid from revenues are as 2023 $ 2,000 $ 2,000 follows: 2024 $ 1,883 1,883 Fiscal Year Ending 6£30 Princieal Interest Total 2025 1,883 1883 2023 $ 4,047 $ 6,623 $ 10,670 Total notes and loans $ 2,000 $ 3,766 $ 5,766 2024 6,926 6,284 13,210 800 Megahertz Communication Equipment loan payable 2025 7,003 6,197 13,200 Portion of the 800 Megahertz Communication Equipment financing 2026 7,102 6,091 13,193 were allocated to The Electric Utility, the Sanitation Utility and the 2027 7,225 5,964 13,189 Convention, Sports & Entertainment Venues. Loan debt service 2028-2032 38,502 27,340 65,842 requirements to maturity are as follows:

2033-2037 43,994 21,682 65,676 Electric Utility 2038-2042 51,472 14,109 65,581 Fiscal Year Ending 6£30 Princigal Interest Total 2043-2047 60,433 5,061 65,494 2023 $ 32 $ 3 $ 35 Total bonds $ 226,704 $ 99,351 $ 326,055 2024 33 2 35 2025 33 1 34 2026 34 1 35 2027-2031 17 17 Total notes and loans $ 149 $ 7 $ 156 9~

CITY OF ANAHEIM Sanitation Utility Loan debt service to maturity requirements are as follows:

Fiscal Year Ending 6L30 Princigal Interest Total

$ 21 $ Fiscal Year Ending 6L30 Princiga! Interest Total 2023 2 $ 23 2024 21 1 22 2023 $ 35 $ 4 $ 39 2025 22 1 23 2024 36 3 39 2026 22 1 23 2025 37 2 39 2027-2031 11 11 2026 28 28 Total notes and loans $ 97 $ 5 $ 102 2027 6 6 Total notes and loans $ 142 $ 9 $ 151 Convention, Sports and Entertainment Venues Fiscal Year Ending 6L30 Princiga! Interest Total ARBITRACE 2023 $ 3 $ 3 2024 3 3 The Tax Reform Act of 1986 (Act) substantially revised the treatment to be 2025 3 3 afforded to earnings on the proceeds of tax-exempt debt, and requires 2026 3 3 the City to calculate and remit rebatable arbitrage earnings to the Internal 2027-2031 2 2 Revenue Service. Certain of the City's debt and interest earned on the Total notes and loans $ 14 $ 14 proceeds thereof are subject to the requirements of the Act. The City has accrued a liability for estimated rebatable arbitrage earnings and has set Coif Courses Equipment Loans aside such earnings as restricted cash. AtJune 30,2021, the arbitrage rebate The City entered into various long-term noncancellable liability for governmental and business-type activities was zero and $130, finance-purchased agreements of Golf Course equipment. The debt respectively.

services of these equipment loans will be repaid from the unrestricted LECAL DEBT MARCIN revenue sources of the Golf Courses Enterprise Fund.

The City of Anaheim has a general obligation debt limit that cannot An Agreement with DDL Finance on October 5, 2020 to provide exceed 3.75% of the total assessed valuation of all real and personal financing of $62 for the acquisition of golf carts at Dad Millers Golf property within the City. Based on the fiscal year 2021-2022 gross assessed Course. The interest rate for the loan is 4.58% per annum, payable valuation for taxation purposes of $53,036,796, the City has a debt limit monthly beginning on November 5, 2020 and ending on November 5, of $1,988,880 or 3.75%. Currently the City does not have any outstanding 2025. Total debt service to maturity is $69. At June 30, 2022, the principal bonded indebtedness in the form of general obligation bonds. Since loan balance is $42. the outstanding bond principal is zero, the City has a net debt margin of $1,988,880.

An Agreement with PNC Equipment Finance on September 15, 2021 to provide financing of $50 for the acquisition of golf course equipment. COMPLIANCE WITH DEBT COVENANTS The interest rate for the loan is 2.0% per annum, payable monthly There are various limitations and restrictions contained in the City's bonds beginning on September 15, 2021 and ending on August 15, 2026. Total indentures. The City believes they are in compliance with all significant debt service to maturity is $53. At June 30, 2022, the principal loan limitations and restrictions.

balance is $42.

DEBT ISSUANCES An Agreement with PNC Equipment Finance on November 1, 2021 to provide financing of $67 for the acquisition of golf course equipment. City - Debt Issuances The interest rate for the loan is 2.0% per annum, payable monthly On December 15, 2021, the City issued Anaheim Public Financing beginning on November 1, 2021 and ending on November 1, 2026. Total Authority (APFA) Lease Revenue Bonds (Convention Center Refunding) debt service to maturity is $70. At June 30, 2022, the principal loan Series 2021-A in the principal amount of $250,250 at par to refund the balance is $58. outstanding principal balance of the 2014-A Lease Revenue Bonds.

Interest rates for the bonds range from 0.863% to 3.265%. Total debt 9.t

CITY OF ANAHEIM service to maturity is $360,057 payable semi-annually beginning from Electric Utility - Debt Issuances July l, 2022 and ending on July l, 2046. Annual principal payment The Electric Utility's bonds are payable from the electric system net ranges from $4,150 to $14,240. The bond proceeds, net of underwriter revenues.

discount of $723 and along with the2014-A bond reserve fund of$8,079 totaled $257,606 was disbursed by the bond trustee as follows: $671 for On April 28, 2022, the Electric Utility issued Anaheim Housing and Public the acquisitions of an insurance and a surety policies in satisfaction Improvement Authority (AHPIA} 2022-A Revenue/Revenue Refunding of the bond reserve requirements; $685 for the Cost of issuance fund, Bonds in the principal amount of $156,530, at a premium of $17,203, and $256,250 to the refunding bond escrow agent of which $8,079 totaling $173,734. The true interest cost of the 2022-A bonds is 3.80%,

representing current accrued debt service due and $248,171 to advance payable semi-annually beginning from October l, 2022 and ending on refund the $225,258 outstanding principal balance of the 2014A bonds. October l, 2052. Annual principal payment ranges from $675 to $19,560.

The City reduced its total debt service payments over the life of the Total debt service to maturity of the refunded bonds is $249,592.

refunded bonds by $45,331 and obtained a present value savings of Proceeds of the bonds, net of underwriter discount ($353) and cost

$25,777. of issuance ($522), provides* $50,000 financing for the acquisition and construction of certain capital improvements to the Electric System Consistent with the components of the sources and uses of funds, the Projects, the remaining balance of $122,860 was transferred to the 2021-A Lease Revenue Bonds refunded principal of $250,250 have been refunded bond escrow agent to partially refund the $14,335 outstanding allocated to the Municipal Facilities nonmajor governmental Debt principal balance of the 2012-A Electric Revenue bonds, and partially Service Fund and the Convention, Sports and Entertainment Enterprise refund $104,235 of the outstanding principal balance of the 2017-B Fund in the amount of $23,546 and $226,704 respectively. The debt Electric Revenue bonds. The Electric Utility reduced its total debt service services will be repaid with unrestricted resources transferred from the payments over the life of the refunded bonds by $9,570 and obtained a General Fund.

net present value savings of $7,970.

On March 4, 2022, the City executed two separate Escrow and Account On April 28, 2022, the Electric Utility issued AHPIA 2022-B Revenue Control Agreements from an existing Master Equipment Lease/Purchase Bonds in the principal amount of $74,255, at a premium of $8,177, totaling Agreement with Banc of America Public Capital Corp to finance the

$82,432. Proceeds of the bonds, net of underwriter discounts ($167) and acquisitions of eight Emergency Transport Ambulances and various cost of issuance ($118), provides $75,000 financing for the acquisition technology infrastructure equipment. The Emergency Transportation and construction of certain infrastructure improvement to the Electric Ambulances financing is $1,500, at an interest rate of 2.48%, payable System Projects, and provides funding for a Capitalized Interest Fund semi-annually beginning on September 4, 2022 and ending on March account of $7,147. The true interest cost of the 2022-B bonds is 3.41%,

4, 2029. Annual principal and interest payment is $235. Total debt payable semi-annually beginning on October l, 2022 and ending on service to maturity is $1,643 and will be repaid from the unrestricted October l, 2034. Annual principal payment ranges from $5,190 to $8,560.

General Fund resources. The technology infrastructure equipment Total debt service to maturity is $103,670.

financing is $6,500, at an interest rate of 2.3631%, payable semi-annually beginning on September 4, 2022 and ending on March 4, 2027. The On April 28, 2022, The Electric Utility issued AHPIA 2022-D Revenue annual principal and interest payment is $1,386. Total debt service to Refunding Bonds in the principal amount of $79,855. The true interest maturity is $6,930 and will be repaid from the unrestricted Information cost of the 2022-D bonds is 3.85%, payable semi-annually beginning on and Communication Services Internal Service Fund. October 1, 2022 and ending on October 1, 2023.Annual principal payment ranges from $1,950 to $16,755. Total debt service to maturity is $100,697.

On September 15, 2021 and on November l, 2021, the Golf Courses Proceeds of the bonds, net of underwriter discount ($181) and cost of entered into separate finance-purchased agreements totaling $117 issuance ($135) totaling $79,539 was transferred to the refunding bond with an interest rate of 2% per annum, payable monthly, to purchase escrow agent to partially refund $76,975 outstanding principal balance various golf course equipment. Total debt services to maturity of the of the 2017-B Electric Revenue Bonds. The Electric Utility reduced its loans totaling $123 and will be repaid from the unrestricted resources total debt service payment over the life of the refunded bonds by $9,834 of the Golf Courses enterprise fund.

and obtained a net present value savings of $4,909.

CITY OF ANAHEIM Water Utility- Debt Issuances Outstanding 6/30/2022 The Water Utility's bonds are payable from the water system net City revenues. 1997-C APFA Capital Appreciation Bonds $ 84,270 On April 12, 2022, the Water Utility issued AHPIA 2022-A Revenue Bonds 2014 A Lease Revenue Bonds (Anaheim Convention Center Expansion Project) 227,990 in the principal amount of $44,955, at a premium of $5,320, totaling

$50,275. Proceeds from the bonds, net of underwriter discount ($140) and cost of issuance ($135) provides $50,000 financing for the acquisition Electric Utility

_and construction of various water system capital improvements. The 2012-A Electric Revenue Bonds 76,340 true interest cost of the 2022-A is 4.1%, payable semi-annually beginning 2017-B Electric Revenue Bonds 76,975 on October 1, 2022 and ending on October 1, 2052. Annual principal payment ranges from $660 to $2,800. Total debt service to maturity Water Utility is $88,973. 2015-A Water Revenue Bonds 39,065 2020- A Water Revenue Bonds 34,3QS On April 12, 2022, the Water Utility issued AHPIA2022-B Revenue Bonds $ 538,945 in the principal amount of $79,260 at par. The true interest cost of the bonds is 3.96%, payable semi-annually beginning from October 1, 2022 In the refunding, the proceeds of the refunding issue were placed in and ending on October 1, 2049. Annual principal payment ranges from irrevocable escrow accounts and invested in government securities

$555 to $4,840. Total debt service to maturity is $125,220. Proceeds that, together with interest earnings thereon, will provide amounts from the bonds, net of underwriter discount ($245) and cost of issuance sufficient for future payments of interest and principal on the issues

($243), totaled $78,772 was transferred to the refunding bonds escrow refunded. Refunded debt is not included in the City's accompanying agent to partially refund the $39,065 outstanding principal balance of basic financial statements as the City has satisfied its obligation the 2015-A Water Revenue Bonds, and partially refunded the $34,305 through the in-substance defeasance of these issues.

outstanding principal balance of the 2020-A Water Revenue Bonds. The CONDUIT FINANCINCiS Water Utility reduced its total debt service payment over the life of the refunded bonds by $3,651 and obtained a net present value savings of City

$2,466. The City has entered into a conduit financings to facilitate the On April 12, 2022, the Water Utility issued AHPIA 2022-C in the principal management agreement for the Honda Center (formerly the Arrowhead amount of $31,600, at a premium of $3,914, totaling $35,514. The true Pond) of Anaheim. In accordance with applicable agreements, the City interest cost of the 2022-C bonds is 3.8%, payable semi-annually has no obligation for debt service payments and therefore, the debt is beginning from October 1, 2022 and ending on October 1, 2040. Annual not reflected in the accompanying basic financial statements. Bonds principal payment ranges from $835 to $6,085. Total debt service to payable and certificates of participation related to conduit financings maturity is $52,187. Proceeds from the bonds, net of underwriter discount outstanding at June 30, 2022, were as follows:

($98) and cost of issuance ($96), totaled $35,320 was transferred to the Date Final Amount Outstanding refunded bond escrow agent to refund the 2010 Water revenue bonds Issued Maturity Issued 6/30/2022 outstanding balance of $29,690. The Water Utility increased its total 2003 Anaheim Arena debt service payment over the life of the refunded bonds by $8,375 at a Financing Project 12/11/2003 6/1/2023 $ 42,600 =$===4=='=50===0 present value cost of $5,707. The refunding will remove the interest rate Anaheim Housing Authority risk associated with the Build America Bonds interest rate cost subsidy, which is scheduled to expire on December 21, 2022. The Anaheim Housing Authority has entered into conduit debt financings on behalf of various developers to assist with the acquisition, construction, equipping, rehabilitation and refinancing of multifamily DEBT RETIREMENTS residential rental projects within the City of Anaheim. In accordance Debt Defeased with the bond documents, neither the City nor the Housing Authority has an obligation for debt service payments and therefore, the debt is The City defeased the following bonds prior to June 30, 2022:

9E

CITY OF ANAHEIM not reflected in the accompanying basic financial statements. Housing Bonds Payable Authority revenue bonds related to conduit financings outstanding at 2007 Tax Allocation Refunding Bonds June 30,2022, were as follows:

The Successor Agency will repay a total of $44,695, principal and interest, Date Final Amount Outstanding for the outstanding 2007 tax allocation bonds issued in December 2007 Issued Maturih( Issued 6L30L2022 Sage Park Project 11/1/1998 11/1/2028 $ 5,500 $ 5,500 from the semi-annual Redevelopment Property Tax Trust Fund (RPTTF)

Sciara Court Apartments 11/28/2004 12/1/1934 8,200 4,078 revenue allocations. Proceeds from the bonds provided financing for Pradera Apartments (Lincoln 5/15/2009 4/15/1939 23,217 5,999 public improvements related to the merged project areas, for the supply Anaheim) Phase B of low-and moderate-income housing within the City, to repay certain Anton Monaco Apartments 12/14/2012 1/1/2046 35,460 31,749 Crossings at Cherry Orchard 8/23/2012 12/1/2044 9,365 976 Redevelopment Agency loan obligations and to advance refund the Apartments Tranche A 1992, 1997 and 2000 bonds. The bonds bear interest at rates ranging Crossings at Cherry Orchard 8/23/2012 12/1/2029 2,985 1,758 from 4.25% to 6.50% and are payable through February 2031. During Apartments Tranche B Paseo Village Apartments 9/1/2045 11,683 the fiscal year ended June 30, 2022, total principal and interest paid 2/28/2013 19,750 Village Center Apartments 8/7/2014 3/1/2047 15,000 14,413 was$5,636.

Pebble Cove Apartments Series A 8/19/2015 9/1/2031 13,000 11,885 Pebble Cove Apartments Taxable 8/19/2015 8/1/2055 3,550 In January 2018, series A and C of the 2007 Tax Allocation Bonds were 3,550 Subordinate Series 2015A refunded through the issuance of the 2018 Tax Allocation Refunding Hermosa Village Apartments Phase l 12/28/2016 7/1/2049 41,028 25,698 Bond~

• Series A-l/A-2 Miracle Terrace Apartments Series B-1. 1/10/2017 2/1/2050 26,555 25,672 Debt service requirements to maturity for 2007 Tax Allocation bonds, Cobblestone Apartments Series A-1 3/14/2017 10/1/2054 6,185 5,919 series B and D are as follows:

Sea Wind Apartments Series 8-1 3/14/2017 10/1/2054 11,015 10,479 Jamboree Anaheim PSH Apartments Series A 4/30/2020 5/1/2038 12,200 12,200 Fiscal Year Ending 6/30 Principal Interest Total Hermosa Village Apartments Phase 2 2023 $ 1,780 2,089 $ 3,869 Series A 1-3 10/30/2020 5/1/2038 20,798 9,727 2024 1,875 1,973 3,848 The Salvation Army Anaheim Center of Hope Apts A-1 2/1/2022 2/1/2025 1,800 1,800 2025 1,990 1,851 3,841 The Salvation Army Anaheim Center 2026 2,130 1,722 3,852 of Hope Apts A-2 2/1/2022 2/1/2025 850 850

$ 256.458 $ 183,936 2027 4,270 1,583 5,853 Total 2028-2032 20,065 3,367 23,432 FIDUCIARY FUNDS Total bonds $ 32.110 $ 12,585 $ 44,695 Successor Agency 2018 Tax Allocation Refunding Bonds On January 25, 2018, the Successor Agency issued Tax Allocation The following is a summary of changes in long-term debts for the year Refunding Bonds, 2018 Series A and B. The bond proceeds together ended June 30, 2022:

with the 2007 series A and C bond reserve funds were used to refund Due the 2007 Tax Allocation Bonds series A and C, and the 2010 Recovery Within Economic Zone Development Bonds. The Successor Agency will repay Beginning Additions/ Reductions/ Ending One Balance Proceeds Pa)lments Balance Year a total of $118,891, principal and interest, from the semi-annual RPTTF Bonds payable $ 133,620 $ (8,460) $ 125,160 $ 8,935 revenue allocations. The refunding bonds bear interest at rates ranging premium/(discount), net (2,368) (2,368) from 2.27% to 2.50% and are payable through February 2031.

Lease payable 19,613 (443) 19,170 382 Due to City of Anaheim 6261 (1261) 5000 1,334 Debt service requirements to maturity for the 2018 Tax Allocation

$ 159,494 $ (12 532) $ 146,962 $ 10,651 Refunding bonds are as follows:

CITY OF ANAHEIM Fiscal Year Ending 6{_30 eci cipgl l tecest Iota! Fiscal Year Ending 6{_30 eci cipgl l tecest Iota!

2023 $ 7,155 $ 4,653 $ 11,808 2023 $ 359 $ 131 $ 490 2024 7,530 4,295 11,825 2024 364 117 481 7,915 2025 369 102 471 2025 3,918 11,833 2026 375 87 462 2026 9,990 3,523 13,513 2027 382 71 453 2027 10,255 3,023 13,278 2028-2033 1446 119 1565 2028-2032 50 205 6429 56 634 Total notes and loans $ 3,295 $ 627 $ 3,922 Total bonds 93,050 25,841 118,891 Unamortized bond premium/ Mello-Roos Community Facilities Districts discounts, net 11795 11795 The City issued special tax bonds to finance construction in various Total bonds $ 104,845 $ 25,841 $ 130,686 Community Facilities Districts (CFD). These bonds were authorized Due to the City of Anaheim pursuant to the Mello-Roos Community Facilities Act of 1982. The bonds are payable from a special assessment tax and are non-recourse bonds The Successor Agency will repay a total of $1,799 outstanding long-term secured by the properties. Neither the faith and credit nor the taxing obligations, principal and interest, from the semi-annual RPTTF revenue power of the City, the State of California or any political subdivision of allocations for the $10,000 Cooperation Agreement dated April 1, 2003, either of the foregoing is pledged to the payment of the bonds. The bonds between the former Redevelopment Agency and the City, whereby the are not general or special obligations of the City, nor do they contain any City assisted the former Agency with the development of the Anaheim credit enhancements that secondarily pledge existing or future resources Westgate Center (Westgate project) utilizing $10,000 of funds from the of the City, accordingly they are not reflected in the accompanying basic HUD Section 108 loan. This Cooperation Agreement obligation (HUD financial statements. The City is acting as agent only for the property Section 108 loan) bears interest ranging from 1.74% to 5.97% and is payable owners in collecting the special assessments and forwarding the semi- annually through August 2023. At June 30, 2022, outstanding collections to the fiscal agent. This activity is recorded in the Custodial principal due to the City for the Westgate project obligation was $1,705. fund of the Fiduciary Funds in the basic financial statements.

Principal and interest paid for the current fiscal year were $1,034.

At June 30, 2022, the City has the following outstanding Mello-Roos Fi,scal Year Ending 6{_30 Principal Interest Total special tax bonds:

2023 $ 975 $ 72 $ 1,047 2024 730 22 752 Outstanding Total notes and loans $ 1,705 $ 94 $ 1,799 6/30/2022 CFD 06-02 $ 6,015 The Successor Agency will repay a total of $3,922 outstanding long-term obligations, principal and interest, from the semi-annual RPTTF revenue CFD 08-01 46,690

$ 52,705 allocations for the $7,000 Cooperation Agreement dated June 2010 between the former Redevelopment Agency and the City, whereby the In February 2007, the City issued $9,060 in special tax bonds to finance City assisted the former Redevelopment Agency with the rehabilitation a portion of the cost of acquisition and construction of facilities in the of the historic Packing House site utilizing proceeds from the HUD Platinum Triangle of Anaheim, Community Facility District 06-2. Stadium Section 108 loan. This Cooperation Agreement obligation (HUD 108 Loft. On August 10, 2016, the outstanding balance of $7,680 of the 2007 Section loan) bears interest ranging from 1.68% to 3.98% and is payable special tax bonds were refunded by Special Tax Refunding Bonds, Series over20 years beginning on February 1, 2011 through August l, 2030. As of 2016, CFD 06-02, in the principal amount of $7,540 and at a premium of June 30, 2022, the outstanding principal due to the City for the Packing $91. The City reduced the CFD 06-2 total debt service payments over the House site project obligation was $3,295. Principal and interest paid for life of the refunded bonds by $1,989 with a present value savings of $1,352.

the current fiscal year were $498. The true interest cost is 2.89% payable semi-annually commencing from March l, 2017 through September l, 2037. Balance of total debt service is

$7,601 to maturity.

9E

CITY OF ANAHEIM In August 2010, the City issued $28,630 in special tax bonds, Series 2010 to facilities necessary for the continued development of the District, and to finance a portion of the cost of acquisition and construction of facilities refund $22,730 outstanding principal of the CFD 08-1, Special Tax Bonds, in the Platinum Triangle of Anaheim, Community Facility District 08-1 Series 2010. The City reduced the CFD 08-1 total debt service payments and to fund a reserve fund for the Series 2010 Bonds. On August 10, 2016 over the life of the refunded bonds by $13,325 with a present value the City issued Special Tax Bonds, Series 2016, CFD 08-1 in the principal savings of $8,649. The true interest cost is 3.38% payable semiannually amount of $60,000 and at a premium of $5,923. The bonds are being used commencing from March 1, 2017 through September 1, 2037. Balance of to provide financing for acquisition and construction of certain public total debt service is $77,465 to maturity.

CITY OF ANAHEIM NOTE 11 - OTHER LONG-TERM LIABILITIES:

The following is a summary of other long-term liabilities reported in the government-wide financial statements for the fiscal year ended June 30, 2022:

Beginning Reductions/ Ending Due Within Balance Additions Pa:tments Balance One Year Governmental activities:

Claims liabilities (note 8) $ 59,119 $ 13,700 $ (14,300) $ 58,519 $ 13,826 Compensated absences (note 1) 24665 26 923 (27,129) 24459 l8,2Q2 Due to other governments 22 580 {3,560) 19020 Other Postemployment Benefits (OPEB) (note 14)

Governmental Funds 110,369 (35,022) 75,347 Internal Service Funds 9 073 (3,393) 5 680 Total 119 442 (38,415) 81027 Pension (note 13):

Governmental Funds 621,869 (233,733) 388,136 Internal Service Funds 33,541 (13,264) 20277 Total 655 410 (246,997) 408 413 Governmental activities total 881,216 40623 (330 401) 591438 32 028 Business-type activities:

San Juan reclamation liability 5411 (469} 4942 Provision for decommissioning liability (note 1) 80889 11070 (4,180) 87779 Other Postemployment Benefits (OPEB) (note 14)

Electric Utility 20,912 (7,517) 13,395 Water Utility 7,571 (2,634) 4,937 Sanitation Utility 5,057 (1,806) 3,251 Golf Courses 299 (111) 188 Convention, Sports and Entertainment Venues 6 819 (2,468) 4351 Total 40658 (14,536) 26122 Pension (note 13)

Electric Utility 98,035 (39,858) 58,177 Water Utility 31,067 (12,522) 18,545 Sanitation Utility 16,006 (6,288) 9,718 Golf Courses 1,146 (472) 674 Convention, Sports and Entertainment Venues 33182 (18,603) 14 579 Total 179 436 (77,743) 101693 Business-type activities total 306 394 11070 (96,928) 220 536 Government-wide total $ 1,187,610 $ 51,693 $ (427,329) $ 811,974 $ 32,028 10

CITY OF ANAHEIM Governmental activities Savi Ranch Associates note payable Due to other governments In July 1989, the former Redevelopment Agency executed a note with Savi Ranch Associates, a California general partnership. The amount The California Department of Finance (DOF) approved the Successor of the note totaled $2,707 and bears interest at 9.5% per annum. The Agency's Long Range Property Management Plan (LRPMP) on note is payable from net property tax increment as defined in the December 31, 2015; the LRPMP authorized the transfer of all of the Redevelopment Agency note. If there is insufficient RPTTF revenue properties formerly held by the Successor Agency to the City for either to pay for principal and interest at the termination of the River Valley governmental use or future development. The California Redevelopment project area plan in November 2031, the note ceases to be an obligation Agency Dissolution Law (ABxl 26, AB 1484, AB 471 and SB 107, as the of the Successor Agency. For the fiscal year ended June 30, 2022, total same may be amended from time to time) addresses the distribution interest paid was $443.

of land sale proceeds from the sale of those properties and suggests that such distribution be memorialized in agreements (Compensation Westgate Pollution Remediation Obligation Agreements) among the entities that receive the former redevelopment In June 2003, the former Redevelopment Agency acquired property agency's property tax increment. To date, no Compensation Agreements located at 2951 West Lincoln Avenue as part of a redevelopment project have been executed, but such distribution may involve the transfer of $0 named the Westgate project. Approximately 11 acres of the property up to the estimated net tota 11 ia bi Iity at June 30, 2020 of $22,580 to those were formerly known as the Sparks and Rains Landfills. The County taxing entities. During fiscal year 2022, payment of $3,560 was paid to of Orange was the operator of these landfills until 1960. In November the County of Orange for the distribution to other taxing entities. The 2008, the County paid the Redevelopment Agency $5,176 in settlement balance of the estimated accrued liability at June 30, 2022 was $19,020. of claims related to the pollution remediation for the Westgate project site prior to the development of a shopping center. The total costs of Business-type activities the pollution remediation work amounted to $12,420 based on the Other liability - San Juan reclamation obligation actual contract received for the project. Subsequently, management The Electric Utility is providing for the future reclamation costs identified potential additional pollution remediation costs including ongoing maintenance responsibilities required for the Westgate project allocation based on its former ownership share of Unit 4 of 10.04% of amounting to $18,576 in Fiscal Year 2015 and $4,351 in Fiscal Year 2021.

the San Juan (SJ) Generation Station. The Electric Utility has $5,512 During fiscal year 2022, the Successor Agency paid $2,026 related to the in an irrevocable trust as of June 30, 2022 for reclamation costs and Westgate pollution remediation cost. The pollution remediation liability with a reclamation obligation of $4,942. During fiscal year 2022, the at June 30, 2022 is estimated to be $17,808.

Electric Utility paid $375 related to San Juan reclamation obligation and transferred amount of the overfunding ($93) to deferred inflow of NOTE 12 - LEASE PAYABLE:

resources related to regulated business activities for the benefits of The City is a lessee for non cancellable leases of land, building and utility rate payers. Balance of the regulated business activities related equipment. The City's lease payable at June 30, 2022 were valued to SJ reclamation was $570 at June 30, 2022.

at $4,375 for Governmental Activities and $2,997 for Business-type SUCCESSOR AGENCY Activities. At June 30, 2022, Right-to-use leased assets, net of accumulated amortization, related to these leases were $4,699 and Other long-term liabilities

$3,019 for the Governmental and Business-type Activities respectively.

The Successor Agency has the following other long-term liabilities at The right-to-use leased asset balances and the related accumulated June 30, 2022: amortization are displayed on note 7 on page 84 of the notes to the Beginning Additions/ Reductions/ Ending Within One financial statements.

Bolance Proceeds Payments Balance Year The City's incremental borrowing rate of 1.75% (rate in July 2021) was Notes and loans payable $ 2,707 $ 2.707 applied to those leases that do not have a specific interest rate.

Pollution remediation liability 19,834 $ (2,026) 17,808 $ 1992 Lease payable of the governmental activities totaling $4,375 consist the

$ 22 541 $ (2,026) $ 20 515 $ 1992 following:

10

CITY OF ANAHEIM

• Lease payable for right-to-use leased building totaling $16 has a

• Lease payable for right-to-use leased land totaling $19,170, at remaining lease term that ends on November 30, 2022, principal the Successor Agency's incremental borrowing rate of 1.75%, the and interest for the remaining lease payment is $16. remaining lease term rangefromApril 30,2041 toJanuary29,2078; annual principal and interest payment ranges from $216 to $1,026.

• Lease payable for right-to-use leased land totaling $2,899, the remaining lease terms range from April 10, 2027 to January 31, The future principal and interest lease payments as of June 30, 2022, for 2065, annual principal and interest payment ranges from $81 to the Successor Agency were as follows:

$140.

Fiduciary Fund

• Lease payable for right-to use leased equipment totaling $1,460 Fiscal year Principal Interest for the City's computer leases, the remaining lease terms range 2023 $ 382 $ 330 2024 419 324 from July 30, 2022 to June 29, 2026. Annual principal and interest 2025 444 316 payment ranges from $133 to $912. 2026 452 308 2027 478 300 Lease payable of the business-type activities totaling $2,997 consist the 2028-2032 2,798 1,364 following: 2033-2037 3,513 1,093 2038-2042 3,320 765

• Lease payable for right-to-use leased equipment totaling $75 at 2043-2047 525 624 a rate of 2.37% and ends on August l, 2023, annual principal and 2048-2052 706 572 2053-2057 899 505 interest payment ranges frorri $11 to $65. 2058-2062 919 425 2063-2067 1,116 340

• Lease payable for right-to-use leased land totaling $2,922, the 2068-2077 3 202 328 remaining lease terms range from March 18, 2024 to April 30, 2046; Total $ 19.170 $ 7.596 annual principal and interest payment ranges from $65 to $315.

The future principal and interest lease payments as of June 30, 2022, were as follows:

Governmental l!,ctilljtjes Bysjness-!ype Actillitii:s fiscal year Principal lnteresl Principal lateres!

2023 $ 925 $ 76 $ 328 $ 52 2024 464 60 135 46 2025 158 52 128 44 2026 30 49 132 42 2027 23 48 136 39 2028-2032 141 235 739 160 2033-2037 193 221 830 91 2038-2042 253 201 291 37 2043-2047 324 177 278 10 2048-2052 405 145 2053-2057 499 106 2058-2062 607 58 2063-2067 353 8 Total $ 4.375 $ 1,436 $ 2.997 $ 521 The Fiduciary Fund - Successor Agency is a lessee for non ca ncella ble leases of land. Lease payable atJune 30, 2022 was $19,170. The Successor Agency recorded the right-to-use leased land of $19,613 with an accumulated amortization of $729, and the lease payable on the Statement of Fiduciary Fund net position. The Successor Agency subleased a portion of the leased land to a third party and has recorded a lease receivable of $6,196 with a corresponding deferred inflow of resources of $6,109.

10

CITY OF ANAHEIM NOTE 13 - PENSIONS: Police Safety Prior to On or after General information about the Pension Plans Hire Date January 1, 2013 January 1, 2013 Plan Description Benefit formula 3.0%@50 2.7%@57 The City provides pension benefits to eligible full-time employees in Benefit vesting schedule 5 years' service 5 yea rs' service three separate pension plans: Miscellaneous Plan, Police Safety Plan Benefit payments monthly for life monthly for life and Fire Safety Plan. These plans are agent multiple-employer public Retirement age 50 52-57 employee defined benefit plans and are administered through the Monthly benefits, as a % of eligible compensation 3.00% 2.70%

California Public Employees' Retirement System (Cal PERS), which acts Required employee contribution rates 9.00% 13.50%

as a common investment and administrative agent for participating Required employer contribution rates 24.080% 24.080%

public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Fire Safety Cal PERS issues publicly available reports that include a full description Prior to On or after of the pension plans regarding benefit provisions, assumptions and January 1, 2012; Hire Date January 1, 2013 January 1, 2013 membership information that can be found on the Cal PERS website@

2%@50; WWW.cal pers.ca.gov. Benefit formula 3.0%@50 2.7%@57 Benefits Provided Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life CalPERS provides service retirement and disability benefits, annual Retirement age 50 50;57 cost of living adjustments and death benefits to plan members, who Monthly benefits, as a % of eligible must be public employees and beneficiaries. Benefits are based on compensation 3.00% 2.0%; -2.7%

years of credited service, equal to one year of full-time employment. Required employee contribution rates 9.00% 9.00%; 12.00%

Members with five years of total service are eligible to retire at age SO Required employer contribution rates 19.030% 19.030%

with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of Employees Covered the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the As of the June 30, 2021 actuarial valuation, the following employees Optional Settlement 2W Death Benefit. The cost of living adjustments were covered by the benefit terms for each Plan:

for each plan are applied as specified by the Public Employee's Police Fire Retirement Law. Mjsce!laneous Safety Safety Inactive employees or beneficiaries The Plans' provisions and benefits in effect at June 30, 2022 are currently receiving benefits 2,330 626 328 Inactive employees entitled to but not yet summarized as follows: receiving benefits 1,853 79 71 Active employees ---~1~4=3=9 --~3=9=2 --~2=0=3 Miscellaneous Total =======5=6=2=2 ===1=0=9=7 ======6=0=2 Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit formula 2.7%@55 2.0%@62 Benefit vesting schedule 5 years' service 5 years' service Benefit payments monthly for life monthly for life Retirement age 50-55 52-65 Monthly benefits, as a% of eligible compensation 2.70% 2.00%

Required employee contribution rates 8.00% 7.50%

Required employer contribution rates 11.960% 11.960%

10

CITY OF ANAHEIM Contributions Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July l following notice of a change in the rate. The total plan contributions are determined through Cal PERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability, The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The total required minimum employer contribution is the sum of the Employer Normal Cost Rate (Employer Rate, expressed as a percentage of payroll) plus the Employer Unfunded Accrued Liability (UAL) Contribution amount (in dollar). The following table summarizes the required contribution rates by employee and employer effective for fiscal year 2022. The contribution requirements of plan members and the City are established and may be amended by Cal PERS.

Emr;iloyer Rate Total Rate CalPERS Retirement Employee FY2022 UAL Employee Group Membershir;i 1 Formula Rate Emr;iloyee2 City Emr;iloyee City Total Rate Contribution3 Miscellaneous Employees Management; confidential Classic 2.7%@55 8.000% 4.000% 7.960% 12.000% 7.960% 19.960%

Anaheim Municipal Employees Association (AMEA) General New 2%@62 7.500% 0.000% 11.960% 7.500% 11.960% 19.460% $ 37,532 Anaheim Municipal Employees Association (AMEA) Clerical International Brotherhood of Electrical Workers (IBEW)

Anaheim Police Association Trainees Safety Employees Fire Management Classic 3%@50 9.000% 3.000% 16.030% 12.000% 16.030% 28.030%

Anaheim Fire Association (AFA) Classic 2%@50 9.000% 3.000% 16.030% 12.000% 16.030% 28.030%

New 2.7%@57 12.000% 0.000% 19.030% 12.000% 19.030% 31.030% $ 10,579 Police Management Classic 3%@50 9.000% 3.000% 21.080% 12.000% 21.080% 33.080%

Anaheim Police Management Association (APMA) New 2.7%@ 57 13.500% 0.000% 24.080% 13.500% 24.080% 37.580% $ 18,028 Anaheim Police Association (APA) 1 Definition of a 'New' PERS member A new hire who is brought in CalPERS membership for the first time on or after January 1, 2013, and who has no prior membership in any California public retirement system.

A new hire who is brought into Cal PERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system.

A member who first established Cal PERS membership prior to January 1, 2013, and who is rehired by a different CALPERS employer after a break in service of greater than six months.

2 PERS Cost Share is the employee contribution towards the employer's Normal Cost (NC) Rate. Normal cost is the annual cost of service accrual for the upcoming fiscal year for active employees.

Normal cost is shown as a percentage of payroll and paid as part of the payroll reporting process.

3 The Unfunded Accrued Liability (UAL) is the amortized dollar amount needed to fund past service credit earned (or accrued) for members who are currently receiving benefits, active members, and for members entitled to deferred benefits, as of the valuation date. Effective in fiscal year 2018, Cal PERS began collecting employer contributions toward the plan's UAL as a dollar amount instead of the prior method of a contribution rate.

10

CITY OF ANAHEIM The pension plans (pensions) are recognized in the government-wide Actuarial Assumptions:

financial statements and proprietary funds financial statements on an A summary of principal assumptions and methods used to determine accrual basis of accounting, while the contributions to the pension plan the net pension liability is shown below.

are recognized as expenditures on modified accrual basis of accounting on the governmental fund statements. Valuation Date (VD) June 30, 2020 The net pension liability in the Statement of Net Position represents the Measurement Date (MD) June 30, 2021 City's excess of the total pension liability over the fiduciary net position Measurement Period July 1, 2020 to June 30, 2021 reflected on the Valuation Reports provided by Cal PERS. The net pension Reporting Date (RD) June 30, 2022 Actuarial Cost Method Entry Age Normal in accordance with the liabilities are measured as of the City's prior fiscal year. Changes in net requirements of GASB 68 pension liability are recorded as pension expense or as deferred inflows Asset Valuation Method Fair Value of Assets of resources or deferred outflows of resources depending on the nature of the change. Actuarial Assumptions:

Discount Rate 7.1S%

The changes in net pension liability that are recorded as deferred inflows Inflation 2.50%

of resources or deferred outflows of resources that arise from changes Varies by Entry Age and Service Salary Increase in actuarial assumptions or other inputs and differences between Payroll Growth 2.75%

expected or actual experience are amortized over the weighted average Investment Rate of Return 7.00% Net of Pension Plan Investment and remaining service life of all participants in the respective pension plan Administrative Expenses; includes Inflation and are recorded as a component of pension expense beginning with Retirement Age The probabilities of Retirement are based on the period in which the difference incurred. the 2017 CalPERS Experience Study for the Projected earnings on pension investments are recognized as a period from 1997 to 2015.

component of pension expense. Differences between projected and Mortality Derived using Cal PERS' membership data actual investment earnings are reported as deferred inflows of resources for all funds. The probabilities of mortality are based on the 2017 Cal PERS Experience or deferred outflows of resources and amortized as a component of Study for the period from 1997 to 2015. Pre-pension expense on a closed basis over a five-year period beginning retirement and Post-retirement mortality with the period in which the difference occurred. rates include lS years of projected mortality improvement using 90% of Scale MP-2016 Net Pension Liability published by the Society of Actuaries.

The City's net pension liability for each Plan is measured as the total Post-Retirement Benefits The lesser of contract COLA or 2.50% until pension liability, less the pension plan's fiduciary net position. The Increase Purchasing Power Protection Allowance Floor net pension liability of each of the Plan is measured as of June 30, on purchasing power applies, 2.5% thereafter 2021. Liabilities are based on the results of the actuarial calculations Change of Assumptions performed as of June 30, 2020 and were rolled forward to determine There was no change of assumptions for the measurement year.

the June 30, 2021 total pension liability. Fiduciary net position is based on fair value of investments as of June 30, 2021. Discount Rate The discount rate used to measure the total pension liability was 7.15%.

The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan 10

CITY OF ANAHEIM investments was applied to all periods of projected benefits payments The first amortized amounts are recognized in pension expense for the to determine the total pension liability. year the gain or loss occurs. The remaining amounts are categorized as Long-term expected rate of return deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future Difference between projected 5 year straight-line amortization real rates of return (expected returns, net of pension plan investment and actual earnings on expense and inflation) are developed for each major asset class. investments All other amounts Straight-line amortization over the average In determining the long-term expected rate of return, Cal PERS took into expected remaining service lives of all account both short-term and long-term market return expectations as members that are provided with benefits well as the expected pension fund cash flows. Using historical returns of (active, inactive, and retired) as of the a1I of the funds' asset classes, expected compound (geometric) returns beginning of the measurement period were calculated over the short-term (first 10 years) and the long-term Change in the Net Pension Liability (ll+years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits Net pension liability is the plan's total pension liability based on the was calculated for each fund. The expected rate of return was set by entry age normal actuarial cost method less the plan's fiduciary net calculating the rounded single equivalent expected return that arrived position.

at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of The following tables show the changes in net pension liability for each Plan recognized over the measurement period:

return was then set equal to the single equivalent rate calculated above and adjusted to account for the assumed administrative expenses. Total Plan Net Pension Pension Fiduciary Liability/

The expected real rates of return by asset class are as followed: Liability Net Position (Asset)

Miscellaneous Plan: {al {bl {cl = {al - {bl Current Target Real Return Real Return Balance at June 30, 2020 (VD) $ 1,528,159 $ 1,087,411 $ 440,748 Asset Class 1 Allocation Years 1-10 2 Years 11+3 Changes recognized for the Measurement Period:

Global Equity 50.00% 4.80% 5.98% Service Cost 24,229 24,229 Fixed Income 28.00% 1.00% 2.62% Interest on the Total Pension Liability 106,426 106,426 Inflation Assets 0.77% 1.81% Difference between Expected and Actual Experience (10,970) (10,970)

Private Equity 8.00% 6.30% 7.23% Contribution from the Employer 49,044 (49,044)

Real Estate 13.00% 3.75% 4.93% Contributions from Employees 9,589 (9,589)

Liquidity 1.00% -0.92% Net Investment Income 245,656 (245,656) 100.00% Benefit Payments, including Refunds of Employee Contributions (81,651) (81,651) 1 Cal PERS' ACFR, Fixed income is included in Global Debt Securities; Liquidity is included Administrative Expenses {1,086l 1086 in Short-term Investments; Inflation Assets are included in both Global Equity Securities Net Changes during 2020-2021 38034 221,552 {183,518l and Global Debt Securities Balance at June 30, 2021 (MD} $ 1,566,193 $ 1,308,963 $ 257,230 2 An expected inflation of 2.0% used for this period 3

An expected inflation of 2.92% used for this period Recognition of Cains 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.

10

CITY OF ANAHEIM Total Plan Net Pension Total Plan Net Pension Pension Fiduciary Liability/ Pension Fiduciary Liability/

Liability Net Position (Asset) Liability Net Position (Asset)

Police Safety Plan: !al !bl /cl = /al - {bl Combined Total: {al {bl {cl = /al - {bl Balance at June 30, 2020 (VD) $ 863,354 $ 614,341 $ 249,013 Balance at June 30, 2020 (VD) $ 2,868,095 $ 2,033,249 $ 834,846 Changes recognized for the Measurement Changes recognized for the Measurement Period: Period:

Service Cost 17,747 17,747 Service Cost 49,306 49,306 Interest on the Total Pension Liability 60,990 60,990 Interest on the Total Pension Liability 200,824 200,824 Difference between Expected and Difference between Expected and Actual Actual Experience 3,081 3,081 Experience (7,552) (7,552)

Contributions from Employer 29,138 (29,138) Contribution from the Employer 92,499 (92,499)

Contributions from Employees 5,525 (5,525) Contributions from Employees 17,859 (17,859)

Net Investment Income 138,954 (138,954) Net Investment Income 458,991 (458,991)

Benefit Payments, including Refunds of Benefit Payments, including Refunds of Employee Contributions (44,591) (44,591) Employee Contributions (152,931) (152,931)

Administrative Expenses (6141 614 Administrative Expenses (2,0311 2 031 Net Changes during 2020-2021 37 227 128,412 (91,1851 Net Changes during 2020-2021 89647 414,387 (324,7401 Balance at June 30, 2021 (MD) $ 900,581 $ 742,753 $ 157,828 Balance at June 30, 2021 (MD) $ 2,957,742 $ 2,447,636 $ 510,106 Total Plan Net Pension Sensitivity of the Net Pension Liability to Changes in the Discount Rate Pension Fiduciary Liability/ . .

Liability Net Position (Asset) The following presents the net pension liability of the City's three Plans Fire Safety Plan: /al {bl {cl = /al - {bl of the measurement date, calculated using the discount rate of 7.15%,

as well as what the net pension liability would be if it were calculated Balance at June 30, 2020 (VD) $ 476,582 $ 331,497 $ 145,085 using a discount rate that is l percentage-point lower (6.15%} or l Changes recognized for the Measurement Period: percentage-point higher (8.15%} than the current rate:

Service Cost 7,330 7,330 Discount Rate Discount Rate Discount Rate Interest on the Total Pension Liability 33,408 33,408 Plans' Net Pension Liability - 1% (6.15%) (7.15%) + 1% (8.15%)

Difference between Expected and Actual Experience 337 337 Miscellaneous $ 457,064 $ 257,230 $ 91,632 Contributions from Employer 14,317 (14,317)

Contributions from Employees 2,745 (2,745) Police Safety 277,351 157,828 59,480 Net Investment Income 74,381 (74,381) Fire Safety 157,849 95,048 43,033 Benefit Payments, including Refunds of Combine total $ 892,264 $ 510,106 $ 194,145 Employee Contributions (26,689) (26,689)

Administrative Expenses (3311 331 Pension Plan Fiduciary Net Position Net Changes during 2020-2021 14,386 64423 (50,0371 Balance at June 30, 2021 (MD) $ 490,968 $ 395,920 $ 95,048 Detailed information about each pension plan's fiduciary net position is available in the separately issued Cal PERS financial reports.

Pension Ex~enses and Deferred OutflowsLinflows of Resources Related to Pensions Pension expense is the change in net pension liability from the previous fiscal year to the current fiscal year less adjustments. For the fiscal year ended June 30, 2022, the City recognized pension expenses of $19,384 which included $2,468 from the Miscellaneous Plan, $10,045 from the Police Safety Plan, and $6,871 from the Fire Safety Plan.

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CITY OF ANAHEIM At June 30, 2022, the City reported deferred outflows of resources and Deferred Deferred deferred inflows of resources related to pension from the following Outflows of Inflows of sources: Combined Total Resources Resources Deferred Deferred Pension contributions subsequent to Outflows of Inflows of measurement date $ 98,718 Miscellaneous Plan Resources Resources Changes of Assumptions $ 239 Difference between Expected and Actual Pension contributions subsequent to Experiences 8,408 9,998 measurement date $ 51,639 Net difference between projected and actual Changes of Assumptions earnings on plan investments 228,432 Difference between Expected and Actual Change in proportions 6,281 6,281 Experiences 174 $ 9,545 Total $ 113,407 $ 244,950 Net difference between projected and actual earnings on plan investments 122,471 Change in proportions 6,281 6,281 The combined total $98,718 ($51,639 from the Miscellaneous Plan, Total $ 58,094 $ 138,297 $31,089 from the Police Safety Plan and $15,990 from Fire Safety Plan) reported as deferred outflows of resources related to contributions Deferred Deferred made subsequent to the measurement date will be recognized as Outflows of Inflows of a reduction of the net pension liability in the next fiscal year. Other Police Safety Plan Resources Resources amount reported in deferred outflow of resources and inflows of resources related to pensions will be recognized as a component in Pension contributions subsequent to pension expense (benefit) as follows:

measurement date $ 31,089 Changes of Assumptions Police Fire Difference between Expected and Actual Fiscal year Miscellaneous Safety Safety Experiences 3,155 $ 453 Ended 6/30 Plan Plan Plan Total Net difference between projected and actual 2023 $ (35,815) $ (16,032) $ (7,247) $ (59,094) earnings on plan investments 69,110 2024 (32,220) (15,419) (6,678) (54,317)

Total $ 34,244 $ 69,563 2025 (30,024) (15,870) (7,906) (53,800) 2026 (33,783) (19,087) (10,180) (63,050)

Deferred Deferred

$ (131,842) $ (66,408) $ (32,011) $ (230,261)

Outflows of Inflows of Fire Safety Plan Resources Resources Payable to the Pension Plans Pension contributions subsequent to measurement date $ 15,990 Changes of Assumptions $ 239 AtJune30, 2022, the City reported a payable of $1,211 for the outstanding Difference between Expected and Actual amount of contributions to the pension plan required for the fiscal year Experiences 5,079 ended June 30, 2022.

Net difference between projected and actual earnings on plan investments 36,851 Total $ 21,069 $ 37,090 10

CITY OF ANAHEIM NOTE 14 - OTHER POSTEMPLOVMENT BENEFITS Regular full time employees hired after the dates above have access to Plan Description the City's medical and dental plans but do not receive a defined benefit.

The City pr9vides other postemployment benefits (OPEB) to eligible Benefits provided regular full-time employees who retired from city services in a The City provides healthcare, dental and vision benefits for retirees and single-employer defined benefit healthcare plan (Plan). The Plan their dependents. Benefits are provided through payment of insurance participates in the California Employers' Retiree Benefit Trust (CERBT) premiums.

to pre-fund OPEB liabilities. The CERBT is an agent multiple employer Additionally, full time employees who retire from the City at age 50 or plan consisting of an aggregation of single-employer plans, with pooled older with 5 years of City service receive life insurance benefits. Retirees administrative and investment functions that are administered by receive a paid-up life insurance policy at retirement. The City pays the full Cal PERS. A copy of the aggregated CERBT annual financial report may cost of the life insurance coverage.

be obtained @www.calpers.ca.gov.

Employees Covered The City's OPEB Plan provides medical, dental and life insurance coverage to eligible retirees. This coverage is available for employees who retire At the June 30, 2021 actuarial valuation, the following employees were from City services with PERS and meet the eligibility requirements in covered by the benefit terms of the OPEB Plan:

accordance with City Personnel Resolutions and various Memoranda of Inactive employees or beneficiaries currently receiving benefit Understanding summarized as follows: 1,331 payments Inactive employees entitled to but not yet receiving benefit payments 106 Employee Date of City Contribution Active employees 1789 Hire Eligibilitt Reguirement Formulas 1 Total 3.226 Groue Management, Before Age 50 with 10 years of 1.5 multiplied by Council - 1/1/1996 continuous full time City Miscellaneous 2%@ Contributions Unrepresented services; must have been 60 PERS retireme'nt Anaheim awarded a retirement schedule based on The contribution requirements of plan members and the City are Municipal from PERS as the reason employee's age at established in accordance with City Personnel Resolutions, Council Employee for separation from City retirement & City Resolution and various Memoranda of Understanding. The retired plan Associations service service accrued members receiving benefits make varying contributions toward the (AMEA) through 12/31/2005 cost of these benefits. The City contributes an amount not less than Police Safety Before Age 50 with 10 years of 1.2 multiplied by 2% @ the annual Actuarially Determined Contribution (ADC) measured 7/6/2001 continuous full time City 50 Safety PERS based in accordance with the parameters of GASB Statement No. 75. The services; must have been on the employee's ADC represents a level of funding that, if paid on an ongoing basis, awarded a-retirement age and years of City is projected to cover normal costs each year and amortization of any from PERS as the reason service at the time of unfunded actuarial liabilities over a closed 30-year period. The remaining for separation from City retirement amortization at June 30, 2022 is sixteen years.

service City contributions to the Plan occur as benefits are paid to retirees or Fire Safety Before Age 50 with 10 years of 1.2 multiplied by 2%@ contributions to the OPEB Trust. Benefit payments occur in the form 11/9/2001 continuous full time City 50 Safety PERS based of direct payments for premiums and taxes (explicit subsidies) and services; must have been on the employee's indirect payments to retirees in the form of higher premiums for active awarded a retirement age and years of City from PERS as the reason service at the time of employees (implicit subsidies).

for separation from City retirement For the fiscal year ended June 30, 2022, the City contributed $16,065 service to the OPEB plan, which is $1,542 in excess of the $14,523 ADC. This 1 The maximum City contribution for the retiree's OPES is 95% of the annual contribution amount included insurance premiums of $18,156, implicit subsidy of amount for active employees

$3,197, offsetting retiree contributions of $5,288.

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CITY OF ANAHEIM Demographic Based on the 2017 experience study of the Cal PERS using data from 1997 to 2015, except for a different basis Net OPEB Liability used to project future mortality improvements. The The City's OPEB liability was measured as of June 30, 2021, and the total representative mortality rates were those published by CalPERS rates, adjusted to back out 15 years of Scale MP OPEB liability used to calculate the net OPEB liability was determined 2016 to central year 2015.

by an actuarial valuation as of that date. Mortality Macleod Watts Scale 2022 applied generationally from Improvement 2015.

Actuarial assumptions:

Healthcare Trend Medical plan premiums and claims costs by age are assumed to increase once each year. Assumed to start A summary of principal assumptions and methods used to determine the net at 5.8% in 2022 and grade down to 3.9% for year 2076 OPEB liability is shown below. and later. This model was developed using the Getzen Model 2022-b published by the Society of Actuaries.

Valuation Date {VD) June 30, 2021 Dental premiums are assumed to increase by 3.5% per Measurement Date June 30, 2021 year.

{MD) Medicare Part B premiums {for a small closed group of Measurement Period July l, 2020 to June 30, 2021 retirees) are assumed to increase by 5% per year.

Reporting Date {RD) June 30, 2022 Employer Cost The City's contribution toward active employee's Actuarial Cost Entry Age Normal Cost, level percent of pay Sharing health coverage is assumed to increase by the general Method inflation rate {2.5%) plus 75% of the healthcare trend Asset Valuation Fair Value of Assets rate in excess of the general inflation rate.

Method Life Insurance Life insurance is valued by taking the present value of Actuarial Assumptions: all future death benefits for future retirees, plus a "load" Long Term Return 6.00% net of plan investment expenses and including ofl0% to reflect insurance company expenses and on Assets inflation profit. A 4% interest rate was used for determining the Discount Rate 6.00% net of plan investment expenses and including single premium value of life insurance at retirement.

inflation General Inflation 2.50% per year Change of Assumptions Rate Salary Increase 3.00% per year; since benefits do not depend on salary, The June 30, 2021 actuarial valuation has the following changes since the prior this is used to allocate the cost of benefits between valuation:

service years.

Participants Valued Only current active employees and retired participants and covered dependents are valued. No future entrants Trust rate of Decreased from 6.70% to 6.00%, reflecting updated long-are considered in this valuation. return and term rates of return projections on trust assets.

Participation Rates Active employees expected to qualify for explicit discount rate City benefits in retirement: 90% of future retirees Mortality The mortality improvement scale was updated from are assumed to elect coverage through the City in Improvement Macleod Watts Scale 2020 to Macleod Watts Scale 2022.

retirement; Healthcare Updated the base healthcare trend scale from Getzen Model Active employees not eligible for explicit City benefits in Trend 2019_b to Getzen Model 2021-b, as published by the Society of retirement: 50% are assumed to continue their current Actuaries.

medical plan elections in retirement. Participation Active employees: For those eligible for retiree coverage only Current retirees: All currently participating retirees are Rate {no City paid premium), the participation rate was increased assumed to continue their existing medical and dental from 45% to 50%, following a review of recent retiree plan elections for the remainder of their lifetime. 35% elections.

of retirees under age 70 and eligible for benefits but Retired employees waiving coverage: the re-enrollment rate currently waiving coverage are assumed to rejoin the for those retirees currently waiving coverage was changed {a) plan. Retirees age 70 and older waiving coverage and for retirees under age 70, from 50% to 35%, and {b) for retirees eligible for coverage are assumed never to enroll. age 70 and older, from 25% to 0%. These changes were made following a review of recent retiree elections.

m

CITY OF ANAHEIM Medicare Certain active employees and retirees have been identified Recognition of Plan Changes and Gains and Losses Eligibility as not eligible for Medicare enrollment based on City Under GASB 75, gains and losses related to changes in Total OPEB employment, though many eventually have qualified for coverage through a spouse or from other employment. For Liability and Fiduciary Net Position are recognized in OPEB expense those under the age of 65 on the valuation date, the actuarial systematically over time.

valuation increased the percentage assumed never to become eligible for Medicare from 20% to 40%, based on an Timing of recognition: Changes in the Total OPEB Liability relating to analysis of recent experience. changes in plan benefits are recognized immediately (fully expensed) in the year in which the change occurs. Gains and Losses are amortized, with Discount Rate the applicable period based on the type of gain or loss. The first amortized The discount rate used to measure the total OPEB liability was 6.0%. The amount are recognized in OPEB expense for the year the gain or loss projection of cash flows used to determine the discount rate assumed occurs. The remaining amounts are categorized as deferred outflows and that City contributions will be made at rates equal to the actuarially deferred inflows of resources related to OPEB and are to be recognized in determined contribution rates. Based on those assumptions, the OPEB future OPEB expenses.

plan's fiduciary net position was projected to be available to make all Difference between 5 year straight-line amortization projected OPEB payments for current active and inactive employees. projected and Therefore, the long-term expected rate of return on OPEB plan actual earnings on investments was applied to all periods of projected benefit payments to investments determine the total OPEB liability. All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members The expected long-term return on trust assets was derived from that are provided with benefits (active, inactive, and information published by CalPERS for CERBT Strategy 1. CalPERS retired) as of the beginning of the measurement determined its returns using a building-block method and best-estimate period. In determining the EARSL, all active, retired ranges of expected future real rates of return for each major asset class and inactive (vested) members are counted, with the (expected returns, net of OPEB plan investment expense and inflation). latter two groups having O remaining service years.

Cal PERS' expected returns are split for years 1-5 and years 16-20.

To derive the single equivalent long-term expected return specific to the City's OPEB Plan, the actuarial valuation first adjusted CalPERS's future return expectations to align with the 2.5% general inflation assumption.

Then applying the plan specific benefit payments to Cal PERS' bifurcated return expectations. The City's OPEB Plan participates in CERBT portfolio investment Strategy 1. The target allocation and best estimates of geometric real rates of return published by Cal PERS for each major asset class of Strategy l are summarized in the following table:

Target Years Years Asset Class Allocation 1-5 6-20 Global Equity 49% 4.00% 4.50%

Fixed Income 23% -1.00% 2.20%

Global Real Estate (REITs) 20% 3.00% 3.90%

Treasury Inflation Protected Securities 5% -1.80% 1.30%

Commodities 3% 0.80% 1.20%

Cash

• General inflation rate assumption for Years 1-5 is 2.4% and for Years 6-20 is 2.3%

111

CITY OF ANAHEIM Changes in the OPES Liability 1% Decrease Current Trend 1% Increase 4 80% Rate 5.80% 6.80%

The following table shows the changes in the net OPEB liability of the City's Plan recognized over the measurement period. Net OPEB Liability $ 83,811 $ 107,149 $ 134,952 Increase (Decrease) OPES Plan fiduciary net position Plan Total OPEB Fiduciary Net Net OPEB Detailed information about the OPES Plan's fiduciary net position is Liabilities Position Liability available in the separately issued CERST annual financial report which may be obtained @www.calpers.ca.gov

~ M ~-M Balance at 06/30/2020 $ 257,835 $ 97,735 $ 160,100 OPES Expense and Deferred Outflows of Resources and Deferred Changes for the year: Inflows of Resources Related to OPEB Service cost 1,714 1,714 For the year ended June 30, 2022, the City recognized OPES expense Interest on Total OPEB Liability 16,840 16,840 of ($1,889). At June 30, 2022, the City reported deferred outflows of Expected investment income 6,547 (6,547) resources and deferred nflows of resources related to OPES from the Changes of Assumptions 17,191 17,191 following sources:

Differences between Expected Deferred Deferred and Actual Experience (45,405) (45,405) Outflows of Inflows of Contributions - Employer 16,393 (16,393) Resources Resources Investment experience 20,388 (20,388)

Benefit payments (16,393) (16,393) OPEB contributions subsequent to $ 16,065 measurement date Trust administrative expense - - - - - ---~(~37~) _ _ _ _ 37_ Changes of Assumptions _14,941 $ 3,920 Net Change (26,053) 26,898 (52,951) Difference between Expected and Actual 47,784 Balance at 06/30/2021 $ 231,782 $ 124,633 =$==10=7=,1=49= Experiences Net difference between projected and actual 14,239 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate earnings on plan investments The following presents the net OPES liability of the City if it were Change in proportion _ _ _____,,3""'7'--4=1 -----=3=7---'4=1 calculated using a discount rate of 6.00% and the impact of l Total $ 34,747 ==$====6==9=,6=8==4 percentage-point lower (5.00%) or l percentage-point higher (7.00%) $16,065 reported as deferred outflows of resources related to contribution than the current rate: made subsequent to measurement date will be recognized as a Discount reduction in net OPES liability in the next fiscal year. Other amount 1% Decrease Rate 1% Increase reported as deferred outflows of resources and deferred inflows of 500% 600% 700% resources related to OPES will be recognized as a component in OPES Net OPEB Liability $ 134,961 $ 107,149 $ 84,005 expense (benefit) as follows:

Fiscal Year Sensitivity of the Net OPES Liability to Changes in the Health Care Cost Ended Iune 30 Trend Rates 2023 $ (12,833) 2024 (11,594)

The following presents the net OPES liability of the City if it were calculated using health care cost trend rates assumed to start at 5.8% 2025 (11,791) and grade down to 3.9% for years 2076 and thereafter. The impact of l 2026 (9,435) 2027 (4,573) percentage-point lower or l percentage point higher than the current Thereafter (776) rate, for measurement period ended June 30, 2021:

Total $ (51,002) 11:

CITY OF ANAHEIM NOTE 15 - SECiMENT INFORMATION: Condensed Statement of Revenues, Expenses and Changes in Fund Net Position The Sanitation Utility Fund issued revenue bonds to finance sewer system Waste water fees (pledged against bonds) $ 15,225 expansion and improvements. The Sanitation Utility Fund accounts for Other revenues 533 three activities: solid waste collection, wastewater, and street cleaning. Depreciation and amortization {2,518)

However, investors in the revenue bonds rely solely on revenue generated Other operating expenses (7,042) through wastewater activities for repayment. Summary financial Total operating Income 6,198 information for wastewater activities is presented below: Nonoperating income(expenses)

Investment loss (1,356)

Condensed Statement of Net Position Interest expense (1,476)

Assets Capital contribution . 177 Cash & cash equivalents $ 9,746 Transfer in 128 Investments 25,273 Transfer out (647)

Other current assets 2,199 Total nonoperating expenses (3,174)

Restricted cash & cash equivalents 7,808 Change in net position 3,024 Restricted investments 17,442 Net position at beginning of year 116 793 Capital assets, net 115 130 Net position at end of year $ 119,817 Total assets 177 598 Condensed Statement of Cash Flows Deferred outflows of resources 1,867 Net cash provided (used for) by:

Liabilities Operating activities $ 7,387 Current liabilities 984 Noncapital financing activities (647)

Long-term debt due within one year 811 Capital and related financing activities {6,352)

Current liabilities payable from restricted assets 1,201 Investing activities (8,520)

Long-term debt due within one year payable from restricted Net increase {8,132) assets 565 Beginning cash and cash equivalents 25,686 Long-term debt less current portion 46,048 Ending cash and cash equivalents $ 17,554 Other long-term liabilities 6,269 Reconciliation of cash & cash equivalent Total liabilities 55,878 Cash & cash equivalent $ 9,746 Deferred inflows of resources 3,770 Restricted cash & cash equivalent 7,808 Net Position Total cash & cash equivalent $ 17,554 Net investment in capital assets 75,061 Restricted for debt services 565 NOTE 16 - DEFERRED COMPENSATION PLAN Restricted for capital projects 15,553 Unrestricted 28638 City employees may participate (voluntarily) in the deferred Total net position $ 119,817 compensation 457 Plan (Plan) offered by the City. Maximum contributions are as defined by law. The primary purpose of the 457 Plan is to provide retirement income and other deferred benefits to the employees and their beneficiaries in accordance with the provisions of Section 457 of the Internal Revenue Code of 1986, as amended.

City contributions to the 457 Plan are limited to certain employment contracts. Per the Memorandum of Understanding between the Anaheim Firefighters Association and the City of Anaheim, the City shall make a contribution to the 457 deferred compensation plan account for each Association-represented employee with an active 457 deferred compensation plan account in the amount of thirty-eight dollars and forty six cents per bi-weekly pay period. The contribution was effective from June 28, 2019 and shall sunset on the last day of the last full pay

CITY OF ANAHEIM period in June 2022. For the fiscal year ended June 30, 2022, the City The City participates in joint powers authority (JPA), the Authority contributed $198. for Orange County-City Hazardous Materials Emergency Response (Hazmat), for the purposes of responding to, assessing the nature of, All amounts of annual deferred, all property and rights purchased with and stabilizing any emergency created by the release or threatened such amounts, and all income attributable to such amounts, property, release of hazardous materials.

or rights shall be held and invested in the Trust Fund for the exclusive benefit of participants and beneficiaries under the Plan. The Deferred The following entities are members of Hazmat: City of Anaheim and Compensation Committee consisting of the Plan Administrator and City City of Huntington Beach (provider agencies). Members of the Board employees serve in the capacity ofTrustee. While the Trustee administers of Directors (Hazmat Board) consists of one voting Board member the Plan and makes selection of investment options available to the and an alternate appointed by the governing body from the provider participants, decisions for investment choices are the responsibilities of agencies. Under the Fifth Amendment to the JPA agreement, three Plan participants. Neither the City nor the Trustee shall be liable for any representatives from the subscribing agencies are also voting Board losses incurred by virtue of following a Plan participants' or beneficiary's Members. The following cities were subscribing agencies: Brea, Costa directions regarding an investment option. Mesa, Fountain Valley, Fullerton, Placentia, Newport Beach and Orange.

The accumulated assets of the Plan are not required to be reported in Public entities in Orange County may receive hazardous materials the accompanying basic financial statements. response services from the Hazmat by executing an agreement and paying a fair share contribution. Audited financial information for the NOTE 17 - RETIREMENT HEALTH SAVINCS PLAN AND TRUST joint powers authority as of and for the year ended June 30, 2022, was as follows:

The City has a Retirement Health Savings Plan and Trust (RHS) that is funded by a City contribution and an employee contribution. The RHS Total assets $ 370 is an employer-sponsored health savings vehicle that allows for the Total liability 30 accumulation of assets to pay for certain eligible medical expenses in Members' equity 340 retirement on a tax-free basis. Total revenues 69 Total expenses 102 City employees, depending on the unit of representation, may be Change in net position (33) mandatorily required to participate in the RHS Plan. The mandatory Hazmat does not have any debt outstanding as of June 30, 2022.

salary contribution effective for the fiscal year ended June 30, 2022 was 0% - 1% of base salary for the City and 0% - 3% employee contribution The City has no significant equity interest in Hazmat, and accordingly based upon the employee group. The City's Deferred Compensation neither assets nor liabilities of Hazmat have been recorded in the City's Committee also administers the RHS and makes selection of investment basic financial statements. For a copy of Hazmat's separate financial options available to the participants; but decisions for investment statements, contact the Finance Director of the City.

choices are the responsibilities of participants. Neither the City nor the Metro Cities Fire Authority Trustee shall be liable for any losses incurred by virtue of following a participants' or beneficiary's directions regarding an investment option. The City participates in a joint powers authority, Metro Cities Fire Authority (Fire Authority), for the purpose of providing a central Total employer contributions from the City amounted to $2,565 for the communication network and record keeping system to support fire fiscal year ended on June 30, 2022. The accumulated assets of the RHS suppression, emergency medical assistance, rescue service, and related are not required to be reported in the accompanying basic financial services provided by the members of the Fire Authority.

statements.

The following entities are members of the Fire Authority: City of Anaheim, NOTE 18 - JOINT VENTURES AND JOINTLY-OWNED PROPERTIES City of Brea, City of Fountain Valley, City of Fullerton, City of Huntington Beach, City of Newport Beach, and the City of Orange. Members of the Authority for Orange County - City Hazardous Materials Emergency Board of Directors (the "Board") consist of one voting Board member Response and an alternate appointed by their governing body.

11*

CITY OF ANAHEIM Public entities in Orange County may receive services from the to $7,300. The Electric Utility is responsible for spent fuel storage charges Fire Authority by executing an agreement and paying a fair share until the federal government takes possession. The Decommissioning contribution. Audited financial information for the Fire Authority as of Trust Fund will continue to pay for spent fuel storage charges.

and for the year ended June 30, 2022, was as follows:

As a former participant in SONGS, the Electric Utility is subject to Total assets $ 4,071 assessment of retrospective insurance premiums in the event of a Total liability 1,897 nuclear incident at SONGS or any other licensed reactor in the United Members' equity 2,174 States of America.

Total revenues 6,630 San Juan Generating Station Total expenses 6,737 Change in net position (107) On July 31, 2015, the Electric Utility and the other Parties involved with The City has no significant equity interest in the Fire Authority, and the San Juan Generating Plants, agreed to a plan for the closure of accordingly neither assets nor liabilities of the Fire Authority have been two of the four units. As co-owner of one of the units that is not being recorded in the City's basic financial statements. For a copy of the Fire closed, on December 31, 2017, the Electric Utility relinquished its 10.04%

Authority's separate financial statements, contact the Finance Director ownership interest in the existing coal-fired SJ, Unit 4, located near of the City. Waterflow, New Mexico to the parties that will continue in the Plant.

Other participants include Public Service of New Mexico, 45.485%; the North Net Joint Training Authority City of Farmington, 8.475%; the County of Los Alamos, 7.200%; and M-S-R The City participates in a joint powers authority, North Net Training Public Power Agency, 28.800%. The Electric Utility's original purchase Authority (Authority), for the purpose of providing a joint use of a cost and cumulative share of ongoing construction costs included in the consolidated Training Center and record keeping system for fire training utility plant at December 31, 2017 amounted to $84,616. All capital assets services. related to the San Juan unit were fully depreciated and retired as of June 30, 2018. There are no separate financial statements for this venture, The following entities are members of the North Net Training Authority: as each participant's interest is reflected in its respective financial City of Anaheim and City of Orange. Members of the Board of Directors statements. Refer to note l on page 69 Provision for decommissioning (the "Board") consist of one voting Board member and an alternate costs related to the decommissioning trust fund set-aside for the future appointed by their governing body. decommissioning of the Plant.

Public entities in Orange County may receive training services from the Authority by executing a "subscription agreement" and by paying NOTE 19 - COMMITMENTS AND CONTINGENCIES:

the annual fee and other costs. Audited financial information for the Authority as of and for the year ended June 30, 2022, was as follows: lntermountain Power Agency The Electric Utility has entered into a power purchase contract with Total assets $ 3,434 the lntermountain Power Agency (IPA) for delivery of electric power.

Total liability 210 The share of IPA power is equal to 13.225% of the generation output Members' equity 3,224 1,373 of IPA's two recently uprated coal-fueled generating units located in Total revenues Total expenses 1,020 Delta, Utah (Unit l and 2 net output is 900 megawatts each). The City Change in net position 353 is obligated for the following percentage of electrical facilities at IPA:

Entitlement Expiration SONGS Generation:

On December 29, 2006, The Electric Utility sold its 3.16% ownership lntermountain Power Project 13.23% 2027 interestofSONGStoSCE.Assuch, the Electric Utility ceased recording all related operating expenses, except marine mitigation costs, and spent The contract constitutes an obligation of the Electric Utility to make fuel storage charges. Based on the SONGS settlement agreement, the payments from revenues and requires payment of certain minimum Electric Utility is responsible for the City's share of marine mitigation charges. These minimum charges include debt service requirements on costs up to $2,300, and SCE is responsible for costs approximately $2,300 11!

CITY OF ANAHEIM the financial obligations used to construct the plant. These requirements Fiscal Year Natural are considered a cost of purchased power. Ending 6/30 IPA STS Magnolia Gas Canlon Total 2023 $ 9,461 $ 12,647 $ 7.408 $ 3,631 $ 19,726 $ 52,873 Southern California Public Power Authority 2024 (129) 5,780 7,476 3,364 19,733 36,224 The Electric Utility is a member of the Southern California Public 2025 (152) 5,780 7,541 3,119 19,743 36,031 Power-Authority (SCPPA), a joint powers agency. SCPPA provides for 2026 5,780 7,612 2,894 19,750 36,036 the financing and construction of electric generating and transmission 2027 5,779 7,688 2,684 19,764 35,915 projects for participation by some or all of its members. To the extent 2028-2032 39,667 10,774 98,708 149,149 the Electric Utility participates in projects developed by SCPPA, it is 2033-2037 39,053 98,221 137,274 obligated for its proportional share of the cost of the project. The City 2038-2042 58,654 58,654 is obligated for the following percentage of electrical facilities owned $ 9,180 $ 35,766 $ 116,445 $ 26,466 $ 354,299 $ 542,156 bySCPPA:

The fiscal year 2022 expenses for fuel, O&M, A&G and other costs at Entitlement Expiration these projects were as follows:

Transmission:

Souther Transmission System (STS) 17.6% 2027 Fiscal Year Mead-Adelanto Project (MAP) 13.5 2030 Ending 6/302022 Mead-Phoenix Project (MPP) 24.2 2030 IPA $ 38,036 Generation: STS 5,201 Magnolia Generating Station (Magnolia) 39.7 2037 MAP 390 Canyon Power Project (Canyon) 100.0 2040 MPP 146 Magnolia 35,093 Natural Gas Reserve Projects (Natural Gas) Natural Gas 614 SCPAA Natural Gas Project-Pinedale, Canyon 22994 Wyoming 35.-7% 2033 Total $ 102.474 SCPPA Natural Gas Project-Barnett, Texas 45.5 2033 Cap-and-Trade Program Take or pay commitments California Assembly Bill (AB) 32 requires that Utilities in California As part of the take or pay commitments with IPA and SCPPA, the reduce their greenhouse gas (GHG) emissions to 1990 levels by the year Electric Utility has agreed to pay its share of current and long-term 2020. It directed the California Air Resources Board (CARB) to develop obligations. Payment for these obligations will be made from the regulations of GHG that became effective January 2012. Emission operating revenues received during the year that the payment is due. compliance obligations under the Cap-and-Trade regulation began in A long-term obligation has not been recorded on the accompanying January 2013.

basic financial statements as these commitments do not represent an obligation of the Electric Utility until the year the power is available to The Cap-and-Trade program (Program) was implemented beginning be delivered to the Electric Utility. The following schedule details the January l, 2013. This Program requires Electric Utilities to have GHG amount of take-or-pay commitments that are due and payable by the allowances on an annual basis to offset GHG emissions associated Electric Utility for each project and the final maturity date. with generating electricity. CARB will provide a free allocation of GHG allowance to each electric utility to mitigate retail rate impacts. This free In addition to take-or-pay commitments referenced above, the City's allocation of GHG allowance is expected to be sufficient to meet Electric entitlement requires the payment for fuel costs, operations and Utility's GHG compliance obligations for retail sales. During this fiscal maintenance (O&M), administration and general (A&G) and other year, an unused portion of retail allowance was sold for $11,059 to reduce miscellaneous costs associated with the generation and transmission future renewable energy costs for retail customers. The compliance facilities discussed above. These costs do not have a similar structured obligation for the wholesale sales requires allowance to be obtained payment schedule as debt service; however, prior experience indicates through the auction or in the secondary market quarterly. At June 30, that annual costs are generally consistent from year to year.

m

CITY OF ANAHEIM 2022, the value of prepaid Cap and Trade allowance is $18,052 and the right to terminate the agreement by fourteen months to December 31, value of the Cap and Trade obligation is $5,517. 2020.

The Honda Center On December 19, 2019, the Anaheim City Council ratified a resolution approving the Purchase and Sale Agreement between the City and SRB On January 26, 1999, the City entered into a series of lease transactions Management Company, LLC (SRB) for the sale of approximatelyl53 acres for the Honda Center. Subsequently on December 16, 2003, the City of City-owned property generally located at 2000 E. Gene Autry Way and and Anaheim Arena Management LLC (AAM) entered into a Facility 2200 East Katella Avenue, including improvements commonly referred to Management Agreement (FMA) whereby AAM has the exclusive right as Angel Stadium of Anaheim, the City National Grove, and surrounding and license to manage, maintain and operate all aspects of the Honda parking areas. Key transaction terms included a purchase price of $325 Center in accordance with the FMA through June 30, 2023, with an option million, a commitment by the Angels to play home games in Anaheim to extend the term for an additional period not to exceed 10 years.

through at least 2050, waiver of Angels Baseball's right to terminate In November 2018, an amendment was signed to extend the term the existing lease, $70 million in periodic deposits to be made by SRB of agreement from June 30, 2023 to June 30, 2048, with five 5-year and credited against the purchase price, and a milestone schedule for extension options. Under the amendment, AAM assumed responsibility establishing development entitlements. On May 12, 2020, the City entered to provide 3,900 parking spaces for Honda Center, relieving the City of into a letter of understanding (LOU) with SRB extending the inspection this long-term obligation. Annual distributions to the City, AAM and the deadline by ninety (90) days from June 30, 2020 to September 30, 2020, County of Orange are required for their respective share of adjusted and accelerating the time required for making the third deposit.

net revenues, as defined in the FMA. In the event that cash on hand is On September 29, 2020, the City Council approved an amended and insufficient to pay operating expenses, debt service, distributions to the restated purchase and sale agreement with updated terms related to City, the County of Orange, or other amounts payable, AAM shall make or the purchase price, method of payment, closing schedule and conditions cause an affiliate or third-party lending institution to make loans for such precedent for closing. The purchase price was reduced to $320 million purposes, as defined in the FMA. Such funds will be repaid from gross to adjust for land that the City will retain for a fire station and for the revenues or adjusted net revenues, if any, as defined in and in accordance City's retention of the adjacent municipal water utility building. SRB will with disbursement priorities established in the FMA. At June 30, 2022, the pay the purchase price with $50 million in cash, due at closing, drawn outstanding conduit debt on the Honda Center totaled $4,500. The debt from escrow deposits; construction of 466 affordable housing units for is non-recourse, payable from revenues generated by the facility. Neither lower and very low income households (credited at $123.68 million); the the faith and credit nor the taxing power of the City is pledged to the construction and maintenance by SRB of a 7-acre public park (credited payment of the debt. The debt is not a general or special obligation of the at $46.23 million); and five annual installments of the approximately City, nor does it contain any credit enhancements that secondarily pledge

$100 million balance of the purchase price, with interest, with the first existing or future resources of the City (other than revenues generated installment due the day after closing. The City Council also, by motion, by the facility), and accordingly it is not reflected in the accompanying approved the Angels Commitment Agreement between the City and basic financial statements.

Angels Baseball LP, memorializing Angels Baseball's commitment not to Angel Stadium of Anaheim relocate and to play its home games at Angels Stadium of Anaheim (or its replacement) until at least December 31, 2050, with options to extend for On May 15, 1996, the City and the California Angels, LP (Team), which was an additional 25 years; and; approved the assignment and assumption of then managed by Disney Sports Enterprises, Inc. (subsequently known the Stadium Lease between the City and SRB, to assign the City's interest, as Anaheim Sports, Inc.), entered into an agreement to provide for the as landlord, in the existing Stadium Lease between the City and Angeles operation and refurbishment of the Stadium. Pursuant to the agreement, Baseball to SRB upon closing of the sale of the project site.

the Team assumed responsibility for the operation of the Stadium on October 1, 1996. The agreement runs for 33 years (subject to a limited On May 24, 2022, the members of the Anaheim City Council unanimously Team option to cancel at 20 years and the Team's right to extend the voted to halt the sale of Angel Stadium and the surrounding property term). In September 2013, the agreement was modified extending the to SRB, which was a management company led by Angels owner Arte Team's right to terminate the agreement by three years to October 16, Moreno and the Angels agreed to the City's request to cancel the sale.

2019. In January 2019, an amendment was signed to extend the Team's lY

CITY OF ANAHEIM The May 14, 1996 Agreement also provided the City the right to develop On November 20, 2018, the City Council approved the Facility Management approximately 42 acres of the parking lot development site. In 1998 a Agreement to be effective on July 1, 2019, for the Anaheim Regional land sale of $1,000 for a 1.25 acre site was approved for the construction Transportation lntermodal Center (ARTIC), between the City as owner of a 1,100-seat theater called "Tinseltown Studios" (now known as "City and ATCM, LLC (an affiliate of AAM and controlled by H&S Ventures, LLC)

National Grove of Anaheim"). In November 2002, the City purchased the ("ATCM") as manager (the "ARTIC FMA"), as guaranteed by AAM pursuant facility and the land for $6,700 from its then owner, SMG. Concurrent with to a Guaranty of Payment and Performance in favor of the City.

the purchase, the City granted to Nederlander-Grove LLC (Nederlander)

Under the terms of The Facility Management Agreement, ATCM assumes a license to operate the facility for three years with the right to extend management of ARTIC through June 30, 2048, with the option to extend another five years. In May 2009, the management agreement was its management obligations for five five-year extension terms; ATCM will amended extending the term to December 31, 2015 with the right be responsible for all operating losses up to $2.5 million annually; AAM/

to extend another five year period. In June 2015, the option to extend ATCM will advance all expenses of a sign "Spectacular" at ARTIC, with was exercised, which extends the term to December 31, 2020. A fourth all proceeds applied to operating expenses; AAM fully guarantees ATCM amendment extended the expiration date to December 31, 2022. In performance; and City and ATCM share in net profits, 60% to City and 40%

August 2022, a fifth amendment was approved that resulted in an to ATCM. For the fiscal year ended June 30, 2022, there was no revenue expiration date of December 31. 2023 with an optional renewal that share distribution.

would result in an expiration date of December 31, 2024. Additionally, under the amended management agreement, effective January 1, 2009, Muzeo Nederlander no longer receives a management fee of $150 and the City's In October 2007, the City and the former Redevelopment Agency share in the annual net profits and losses from operations increased from entered into a property operating agreement (Agreement) with the 50% to 60%. Nederlander is responsible for 100% of losses in excess of Muzeo Foundation to operate and provide programming for the Muzeo,

$400, thereby limiting the City's share of net losses to a maximum of the downtown museum. The Agreement is for a term of 30 years and

$240 in any given year. The City may elect to terminate the agreement provides for a line of credit (LOC) for the first 3 years from the City to the prior to expiration of the term under certain conditions, and pay the Muzeo Foundation in an amount not to exceed $1,000 or 95% of pledges unamortized balance of capital assets purchased during the term to at an annual interest rate of 5%. The Agreement was amended on August Nederlander. Concurrent with the amendment to the management 1, 2010, to extend the maturity date to June 30, 2015. It also amended the agreement, the parking license fee agreement was amended, wherein aggregate amount of the line of creditto $500 during fiscal year 2011 and the parking license fees from Nederlander were reduced to $176 and is

$200 during each fiscal year thereafter with amounts being converted subject to adjustment annually based on CPI increases. For the fiscal to grants upon achieving fundraising thresholds. On June 30, 2014, the year ended June 30, 2022, Nederlander paid the City $229 for parking and agreement was amended to extend the maturity date to June 30, 2019 common area maintenance.

and increased the line of credit amount from $200 to $250 annually.

Anaheim Regional Transportation lntermodal Center - ARTIC In June 2019, The City and the Muzeo Foundation entered Amendment No.

In December 2014, the City opened ARTIC, a transit hub in the Platinum 4 to the Property Operating Agreement which includes the continuance Triangle, a growing and dynamic mixed use area, and within walking of the annual LOC in the amount of $250 per annum for a term of five distance of both the Angel Stadium and the Honda Center. ARTIC serves years expiring June 30, 2024. Additionally, the Muzeo Foundation is also as a transit hub for Orange County and the entire Southern California granted a Capital Working LOC (CWLOC) for up to $150 each fiscal year.

region with bus and rail services. For the fiscal year ended June 30, 2022, there was no fund drawn from theCWLOC.

In January 2018, the City and AAM entered into negotiations to secure opportunities to create an entertainment district with the Platinum Participation Agreement - Construction of Regional Animal Care Triangle, keep the Anaheim Ducks in Anaheim, remove the City's $2.5 Shelter million general fund obligation from operating the ARTIC, and create On April 12, 2016 the City Council approved a Participation Agreement opportunities to create and secure revenues and other economic benefits between the County of Orange and City of Anaheim for the construction that could be realized through development of the under-utilized City of a new regional animal shelter at the former Tustin Air Base. Participants land.

of this Participation Agreement are the County of Orange and fourteen 111

CITY OF ANAHEIM Orange County Cities. The Shelter will be a County public works project ESG grant that the City received from HUD for the purposes to prevent, with a maximum construction amount of $35 million of which the County prepare for, and respond to the COVID-19 among individuals and families will fund $7.2 million and contribute the land at no cost. The remaining who are homeless or receiving homeless assistance and to support

$27.3 million of the maximum construction amount will be divided additional homeless assistance and homeless prevention activities to proportionately among the contract cities based on the percentage of mitigate the impacts of COVID-19. The term is from the period from actual shelter usage over the last five years. The City's proportionate share December l, 2021 through September 1, 2022. Per the Agreement, funds is 28.28% or $7.7 million for an estimated annual payment of $798 payable that the Subrecipient received from the City pursuant to the Agreement quarterly over 10 years starting with fiscal year 2017. During fiscal year shall offset and serve as credit against City's obligation for the Shelter 2022, the City paid $800 with an estimated committed balance of $3,088. Reimbursement and/or Expansion Reimbursement Agreements, if any.

During fiscal year 2022, the City paid $3,500.

Homeless Shelters and Homeless Prevention On December 15, 2020, the City entered into a CARES Emergency On November 10, 2020, the City approved the First Amendment of the Solutions Grants Program Subrecipient Agreement with Kingdom Agreement (Shelter Reimbursement) between the City and the Salvation Causes, Inc, doing business as City Net (Subrecipient), whereby the Army for the continuation of the 224 beds shelter services at the Salvation Subrecipient received federal funds ("ESG-CV Funds") for the operation of Army homeless shelter located at 1455 South Salvation Place to 1) extend emergency solutions program for homeless individuals or families at risk the funding termination date by two additional years from January of homelessess due to COVID-19 in the City of Anaheim. The Agreement is 31, 2021 to January 31, 2023; and 2) approve a funding reimbursement for one-year at an amount not to exceed $2,500. On December 21, 2021, the amount of $11 million for the period from February 1, 2021 through January City and Subrecipient entered into a First Amendment to Agreement for 31, 2023. The City paid $2,069 for the fiscal year ended June 30, 2022 an an additional two year term effective January 1, 2022 and shall terminate estimated committed balance of $6,794 (before crediting amount paid on December 31, 2023 for an amount not to exceed $8,592, inclusive of the from the Agreement as described in the subsequent paragraph).

original agreement amount of $2,500. The City paid $2,284 during fiscal On April 22, 2020, the City entered an Agreement for the Homeless year 2022 with a committed balance of $4,918.

Shelter Expansion (Expansion Agreement) with the Salvation Army to Litigation obtain additional temporary shelter capacity. The City agreed to fully reimburse the Salvation Army up to $1,800 for its costs in constructing the A number of claims and suits are pending against the City for alleged Expansion with a minimum of 101 beds located in large trailers or similar damages to persons and/or property and for other alleged liabilities structures with roof and four walls. The City completed the commitment arising out of matters usually incident to the operation of a city such as of the construction payments in the prior fiscal year. Additionally, the Anaheim. Although the aggregate amount asserted for such lawsuits City agreed to fully reimburse the Salvation Army for its costs actually and claims is significant, in the opinion of City management, the City has incurred in operating the Expansion up to $1,726 annually. The term of strong defenses against such claims, and thus the ultimate loss, if any, the Agreement is two years beginning on the Commencement Date. For relating to these claims and suits not covered by insurance or reflected in the fiscal year ended June 30, 2022, the City paid $629. the financial statements, will not materially affect the financial position of the City.

On June 20, 2019, the City entered into an Agreement with Illumination Foundation for the operation of an emergency homeless shelter (Shelter) Crants located at 3035 East La Mesa Street. The Agreement commenced upon Amounts received or receivable from grant agencies are subject to audit the effective date and continued for one year, and was extended for up and adjustment by granter agencies. Any disallowed claims, including to two additional one year periods. The City pays a fee of fifty-five dollars amounts already collected, may constitute a liability of the applicable and thirty three cents ($55.33) per day for each person housed in the funds. The amount, if any, of expenditures that may be disallowed by the Shelter for a total contract agreement not to exceed $6,500. During fiscal grantor cannot be determined at this time, although the City expects year 2022, the City paid the $1,620 and completed the obligation of the such amounts, if any, to be immaterial.

commitment.

On December l, 2021, the City entered into an Agreement ("Agreement")

with the Salvation Army (Subrecipient) to passthrough $4,000 of the 11!

CITY OF ANAHEIM Construction and other significant commitments amount of $34,095 and at a premium of $3,773. The bond proceeds, net of underwriter discount ($83) and cost of issuance ($57), together At June 30, 2022, the City had the following commitments with respect with the 2012-A Bond Reserve Fund of $8,816, and debt service fund to unfinished capital projects, disposition and development agreements, of $1,560, totaled $48,104 was used to refund the remaining $47,200 reimbursement agreements and cooperation agreements:

outstanding principal balance of the 2012-A revenue bonds. The Electric Remaining Expected Utility reduced the total debt service payment of the refunded bonds Construction Completion by $2,788 with a net present value saving of $2,129.

Cagital Projects Commitment Date Alley Sanitary Sewer Improvements $ 2,153 2022 Anaheim West Tower HVAC Rehabilitation 5,055 2023 Brookhurst Community Center- Teen Room Addition 615 2022 Direct Buried Cable Replacement Phase 14 3,147 2022 Electric Meters 5,490 2022 Euclid Street Rehabilitation 2,110 2022 Go 165 Underground Electric System Inspections 773 2023 Groundwater Treatment Plants Phase A 103,721 2023 Miscellaneous Water Vault Nos 26,33 And 55 Rehabilitation 687 2023 Neighborhood Improvements-Northeast Anaheim Colony (Sabina) 2,191 2022 Overhead Electric Reliability Improvement 10,874 2022 Portable Water Valve Replacement-Phase I 2,624 2022 Transformers 8,225 2022 Underground District No. 65 Phase I 1,667 2022 Underground District No. 65 Phase 2 Santa Ana Canyon Road 4,739 2022 Underground District No. 67 Sycamore Street 10,464 2023 Vehicle Acquisition 6,266 2022 Water Main Replacement - Dwyer Dr., Lincoln Ave & Dahlia Dr. 2,817 2022 Water Main Replacement - Felicidad St, Lemon St.,& Freedom Ave 2,824 2023 Water Main Replacement - Imperial Highway &

Big Sky Lane 1,586 2022 Water Main Replacement - La Palma Ave &

Tustin Ave 2,658 2023 Water Main Replacement - Rural Ridge Cir And Wilshire Ave 2,227 2022 Water Main Replacement - Shady Lane, Olive St

& Country Hill Rd 1602 2022

$ 184,515 NOTE 20 - SUBSEQUENT EVENTS On July 6, 2022, the Electric Utility issued Anaheim Housing and Public Improvements Authority Revenue Refunding Bonds, Series 2022-E (Electric Utility Distribution System Refunding}, in the principal 12

Required Supplementary Information Anaheim, California Reauired Suoolementarv Information

CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years 1 (In thousands)

Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period: 2020-2021 2020-2021 2020-2021 2020-2021 2019-2020 2019-2020 2019-2020 2019-2020 TOTAL PENSION LIABILITY Service cost $ 24,229 $ 17,747 $ 7,330 $ 49,306 $ 24,446 $ 17,304 $ 6,933 $ 48,683 Interest on the Total Pension Liability 106,426 60,990 33,408 200,824 103,706 58,403 32,429 194,538 Changes of Assumptions Difference Between Expected and Actual Experience (10,970) 3,081 337 (7,552) (5,084) (930) 6,423 409 Benefit Payments, including Refunds of Employee Contributions [81,651} [44,591} {26,689} [152,931} {76,418} [41,047} {25,727} [143,192}

Net Change in Total Pension Liability 38,034 37,227 14,386 89,647 46,650 33,730 20,058 100,438 Total Pension Liability - Beginning 1,528,159 863,354 476 582 2,868,095 1,481,509 829,624 456 524 2,767,657 Total Pension Liability - Ending (a) $ 1,566,193 $ 900,581 $ 490,968 $ 2,957,742 $ 1,528,159 $ 863,354 $ 476,582 $ 2,868,095 PLAN FIDUCIARY NET POSITION Contributions - Employer $ 49,044 $ 29,138 $ 14,317 $ 92,499 $ 46,238 $ 26,639 $ 13,174 $ 86,051 Contributions - Employees 9,589 5,525 2,745 17,859 9,878 5,398 2,589 17,865 Net Investment Income 245,656 138,954 74,381 458,991 52,399 29,601 15,959 97,959 Benefit Payments, including Refunds of Employee Contributions (81,651) (44,591) (26,689) (152,931) (76,418) (41,047) (25,727) (143,192)

Plan to Plan Resource Movement Administration Expense (1,086) (614) (331) (2,031) (1,490) (838) (460) (2,788)

Other Miscellaneous Income (Expense)

Net Change in Fiduciary Net Position 221,552 128,412 64,423 414,387 30,607 19,753 5,535 55,895 Plan Fiduciary Net Position - Beginning 2 1,087,411 614,341 331,497 2,033,249 1,056,804 594,588 325,962 1,977,354 Plan Fiduciary Net Position - Ending (b) 1,308,963 742 753 395,920 2,447,636 1,087,411 614 341 331497 2,033,249 Plan Net Pension Liability (Asset) - Ending (a) - (b) $ 257,230 $ 157,828 $ 95,048 $ 510,106 $ 440,748 $ 249,013 $ 145,085 i 834,846 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 83.58% 82.47% 80.64% 82.75% 71.16% 71.16% 69.56% 70.89%

Covered Payroll3 $ 128,129 $ 54,707 $ 26,771 $ 209,607 $ 127,786 $ 52,999 $ 25,092 $ 205,877 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 200.76% 288.50% 355.04% 243.36% 344.91% 469.84% 578.21% 405.51%

Notes:

1 Historical information is required only for measurement periods for which GASB 68 is applicable, Additional years will be presented as they become available 2

Includes any beginning of year adjustment 3 lncludes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

(Continued) 12

CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years 1 (In thousands) (continued)

Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period: 2018-2019 2018-2019 2018-2019 2018-2019 2017-2018 2017-2018 2017-2018 2017-2018 TOTAL PENSION LIABILITY Service cost $ 23,998 $ 17,241 $ 6,617 $ 47,856 $ 24,265 $ 16,628 $ 6,625 $ 47,518 Interest on the Total Pension Liability 100,471 56,054 31,074 187,599 96,660 53,413 29,971 180,044 Changes of Assumptions 2 (7,462) (3,208) (1,830) (12,500)

Difference Between Expected and Actual Experience 2,789 3,458 3,076 9,323 (3,467) (2,322) 1,245 (4,544)

Benefit Payments, including Refunds of Employee Contributions {72.294) {38,058) {24.915) {135,267) {68,285) {35,675) {23,587) {127,547)

Net Change in Total Pension Liability 54,964 38,695 15,852 109,511 41,711 28,836 12,424 82,971 Total Pension Liability - Beginning 1.426.545 790 929 440672 2.658.146 1.384.834 762,093 428 248 2.575.175 Total Pension Liability - Ending (a) $ 1.481.509 $ 829.624 $ 456.524 $ 2.767.657 $ 1.426.545 $ 790.929 $ 440,672 =$--'2=,6=5=8=,1~4=6-PLAN FIDUCIARY NET POSITION Contributions - Employer $ 40,546 $ 23,375 $ 11,654 $ 75,575 $ 35,753 $ 20,412 $ 10,600 $ 66,765 Contributions - Employees 9,653 5,003 2,436 17,092 9,985 4,869 2,487 17,341 Net Investment Income 66,398 37,234 20,553 124,185 80,859 45,025 25,372 151,256 Benefit Payments, including Refunds of Employee Contributions (72,294) (38,058) (24,915) (135,267) (68,285) (35,675) (23,587) (127,547)

Plan to Plan Resource Movement (2) (1) (1) (4)

Administrative Expense (723) (405) (226) (1,354) (1,495) (834) (472) (2,801)

Other Miscellaneous Income (Expense) 3 1 1 1 3 {2,839) {1.584) (897) {5,320)

Net Change in Fiduciary Net Position 43,581 27,150 9,503 80,234 53,976 32,212 13,502 99,690 Plan Fiduciary Net Position - Beginning 4 1,013.223 567 438 316 459 1,897.120 959 247 535.226 302 957 1797 430 Plan Fiduciary Net Position - Ending (b) 1.056,804 594.588 325.962 1.977.354 1,013.223 567 438 316 459 1,897.120 Plan Net Pension Liability (Asset) - Ending (a) -

~ $ 424.705 $ 235,036 $ 130,562 $ 790,303 $ 413,322 $ 223.491 $ 124.213 =$==7=6=1~.0=2=6=

Plan Fiduciary Net Position as a percentage of the Total Pension Liability 71.33% 71.67% 71.40% 71.45% 71.03% 71.74% 71.81% 71.37%

Covered Payroll 5 $ 123,499 $ 52,491 $ 23,383 $ 199,373 $ 124,068 $ 50,771 $ 23,214 $ 198,053 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 343.89% 447.76% 558.36% 396.39% 333.14% 440.19% 535.08% 384.25%

Notes:

1 Historical information is required only for measurement periods for which GASB 68 is applicable, Additional years will be presented as they become available 2

in 2018, demographic assumptions and inflation rate were changed in accordance with CalPERS experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.

3 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement {GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), Cal PERS reported its proportionate share of activity related to postemployment benefits for participants in the State of California's agent OPEB plan. Accordingly, Cal PERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, Cal PERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, Cal PERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting Pension (GASBGB).

4 Includes any beginning of year adjustment 5 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

(Continued) 12

CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years 1 (In thousands) (continued)

Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period: 2016-2017 2016-2017 2016-2017 2016-2017 2015-2016 2015-2016 2015-2016 2015-2016 TOTAL PENSION LIABILITY Service cost $ 23,736 $ 15,914 $ 6,600 $ 46,250 $ 19,841 $ 13,551 $ 5,572 $ 38,964 Interest on the Total Pension Liability 93,754 51,464 29,093 174,311 89,941 49,349 28,550 167,840 Changes of Assumptions2 76,961 43,497 23,564 144,022 Difference Between Expected and Actual Experience 8,902 225 (3,028) 6,099 (28,822) 6,919 (2,504) (24,407)

Benefit Payments, including Refunds of Employee Contributions {64,059} {34,195} {22,071} {120,325} {60,039} {32,039} {20,907} {112,985}

Net Change in Total Pension Liability 139,294 76,905 34,158 250,357 20,921 37,780 10,711 69,412 Total Pension Liability - Beginning 1,245,540 685,188 394,090 2,324,818 1,224,619 647 408 383,379 2,255,406 Total Pension Liability - Ending (a) $ 1,384,834 $ 762,093 $ 428,248 $ 2,575,175 $ 1,245,540 $ 685,188 $ 394,090 $ 2,324,818 PLAN FIDUCIARY NET POSITION Contributions - Employer $ 33,275 $ 19,615 $ 10,350 $ 63,240 $ 31,595 $ 17,527 $ 9,483 $ 58,605 Contributions - Employees 9,744 4,741 2,316 16,801 9,812 4,726 2,328 16,866 Net Investment Income 97,855 54,262 31,036 183,153 4,556 2,607 1,449 8,612 Benefit Payments, including Refunds of Employee Contributions (64,059) (34,195) (22,071) (120,325) (60,039) (32,039) (20,907) (112,985)

Plan to Plan Resource Movement 2 2 (34) (34)

Administrative Expense (1,305) (725) (416) (2,446) (548) (304) (177) (1,029)

Other Miscellaneous Income (Expense)

Net Change in Fiduciary Net Position 75,512 43,698 21,215 140,425 (14,658) (7,483) (7,824) (29,965)

Plan Fiduciary Net Position - Beginning 3 883,735 491,528 281 742 1,657,005 898,393 499,011 289,566 1,686,970 Plan Fiduciary Net Position - Ending (b) 959 247 535,226 302,957 1,797.430 883,735 491,528 281742 1,657,005 Plan Net Pension Liability (Asset) -

Ending (a) - (b) $ 425,587 $ 226,867 $ 125,291 $ 777,745 $ 361,805 $ 193,660 $ 112,348 $ 667,813 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 69.27% 70.23% 70.74% 69.80% 70.95% 71.74% 71.49% 71.27%

Covered Payroll 4 $ 120,653 $ 48,294 $ 22,688 $ 191,635 $ 111,398 $ 46,479 $ 21,600 $ 179,477 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 352.74% 469.76% 552.23% 405.85% 324.79% 416.66% 520.13% 372.09%

Notes:

1 Historical information is required only for measurement periods for which GASS 68 is applicable, Additional years will be presented as they become available 2

In 2017, the discount rate was reduced from 7.65% to 7.15%.

3 Includes any beginning of year adjustment 4 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

See accompanied independent auditors' report 12

CITY OF ANAHEIM Schedule of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years 1 (In thousands) (continued)

Miscellaneous Police Safety Fire Safety Total Miscellaneous Police Safety Fire Safety Total Measurement Period: 2014-2015 2014-2015 2014-2015 2014-2015 2013-2014 2013-2014 2013-2014 2013-2014 TOTAL PENSION LIABILITY Service cost $ 20,334 $ 12,193 $ 5,419 $ 37,946 $ 21,254 $ 13,088 $ 5,961 $ 40,303 Interest on the Total Pension Liability 88,334 46,658 27,760 162,752 85,591 45,898 27,044 158,533 Changes of Assumptions2 (21,249) (11,546) (6,582) (39,377)

Difference Between Expected and Actual Experience (16,296) (19,370) (4,549) (40,215)

Benefit Payments, including Refunds of Employee Contributions {57,158) {30,517) {19,944) {107,619) (53,552) {28,845) {18,657) {101,054}

Net Change in Total Pension Liability 13,965 (2,582) 2,104 13,487 53,293 30,141 14,348 97,782 Total Pension Liability - Beginning 1,210,654 649,990 381,275 2,241,919 1,157,361 619,849 366,927 2,144,137 Total Pension Liability - Ending (a) $ 1,224,619 $ 647,408 $ 383,379 $ 2,255,406 $ 1,210,654 $ 649,990 $ 381,275 $ 2,241,919 PLAN FIDUCIARY NET POSITION Contributions - Employer $ 25,375 $ 14,663 $ 7,622 $ 47,660 $ 23,841 $ 13,505 $ 7,723 $ 45,069 Contributions - Employees 8,877 4,192 2,075 15,144 8,893 4,064 2,337 15,294 Net Investment Income 20,081 10,967 6,515 37,563 135,468 75,115 44,305 254,888 Benefit Payments, including Refunds of Employee Contributions (57,158) (30,517) (19,944) (107,619) (53,552) (28,845) (18,657) (101,054)

Plan to Plan Resource Movement (5) 5 Administrative Expense (1,011} (562) (326) {1,899)

Other Miscellaneous Income (Expense)

Net Change in Fiduciary Net Position (3,841) (1,252) (4,058) (9,151) 114,650 63,839 35,708 214,197 Plan Fiduciary Net Position - Beginning 3 902,234 500,263 293,624 1,696,121 787 584 436424 257,916 1,481,924 Plan Fiduciary Net Position - Ending (b) 898,393 499,011 289,566 1,686,970 902,234 500,263 293,624 1,696,121 Plan Net Pension Liability (Asset) -

Ending (a) - (b) $ 326,226 $ 148,397 $ 93,813 $ 568,436 $ 308,420 $ 149,727 $ 87,651 $ 545,798 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 73.36% 77.08% 75.53% 74.80% 74.52% 76.96% 77.01% 75.65%

Covered Payroll 4 $ 112,039 $ 41,800 $ 20,935 $ 174,774 $ 110,815 $ 43,204 $ 22,107 $ 176,126 Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 291.17% 355.02% 448.12% 325.24% 278.32% 346.56% 396.49% 309.89%

Notes:

1 Historical information is required only for measurement periods for which GASB 68 is applicable, Additional years will be presented as they become available 2

In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense} to 7.65% (without a reduction for pension plan administrative expense}.

3 Includes any beginning of year adjustment 4 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

See accompanied independent auditors' report 12

CITY OF ANAHEIM Schedule of Pension Plan Contributions Last Ten Fiscal Years 1 (In thousands)

Contributions in Relation to Contributions Actuarially the Actuarially Contribution as a Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Pension Plan Contribution 2 Contribution {Excess) Pay:rolP Pay:roll 3 2021-2022 Miscellaneous $ 51,639 $ 51,639 $ 118,048 43.74%

Police Safety 31,089 31,089 54,358 57.19%

Fire Safety 15990 15990 28 395 56.31%

Total $ 98,718 $ 98,718 $ 200,801 49.16%

2020-2021 Miscellaneous $ 49,044 $ 49,044 $ 128,129 38.28%

Police Safety 29,138 29,138 54,707 53.26%

Fire Safety 14 317 14317 26771 53.48%

Total $ 92,499 $ 92,499 $ 209,607 44.13%

2019-2020 Miscellaneous $ 46,238 $ 46,238 $ 127,786 36.18%

Police Safety 26,639 26,639 52,999 50.26%

Fire Safety 13,174 13,1Z4 25,092 52.50%

Total $ 86,051 $ 86,051 $ 205,877 41.80%

2018-2019 Miscellaneous $ 40,546 $ 40,546 $ 123,499 32.83%

Police Safety 23,375 23,375 52,491 44.53%

Fire Safety 11654 11654 23 383 49.84%

Total $ 75,575 $ 75,575 $ 199,373 37.91%

2017-2018 Miscellaneous $ 35,753 $ 35,753 $ 124,068 28.82%

Police Safety 20,412 20,412 50,771 40.20%

Fire Safety 10600 10 600 23 214 45.66%

Total $ 66,765 $ 66,765 $ 198,053 33.71%

2016-2017 Miscellaneous $ 33,275 $ 33,275 $ 120,653 27.58%

Police Safety 19,615 19,615 48,294 40.62%

Fire Safety 10 350 10 350 22 688 45.62%

Total $ 63,240 $ 63,240 $ 191,635 33.00%

2015-2016 Miscellaneous $ 31,141 $ 31,595 $ (454) $ 111,398 28.36%

Police Safety 17,527 17,527 46,479 37.71%

Fire Safety 9483 9483 21600 43.90%

Total $ 58,151 $ 58,605 $ {454) $ 179 477 32.65%

2014-2015 Miscellaneous $ 25,375 $ 25,375 $ 112,039 22.65%

Police Safety 14,663 14,663 41,800 35.08%

Fire Safety 7622 7 622 20 935 36.41%

Total $ 47,660 $ 47,660 $ 174,774 27.27%

(Continued)

See accompanied independent auditors' report 12

CITY OF ANAHEIM Schedule of Pension Plan Contributions Last Ten Fiscal Years 1 (In thousands)

Contributions in Relation to Contributions Actuarially the Actuarially Contribution as a Percentage of Determined Determined Deficiency Covered Covered Fiscal Year Pension Plan Contribution 2 Contribution {Excess) Pa)lroll 3 Pa)lroll 3 2013-2014 Miscellaneous $ 23,841 $ 23,841 $ 110,815 21.51%

Police Safety 13,505 13,505 43,204 31.26%

Fire Safety 7723 7723 22107 34.93%

Total $ 45,069 $ 45,069 $ 176,126 25.59%

1 Historical information is required only for measurement periods for which GASS 68 is applicable. Additional years will be presented as they become available.

2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions toward their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

3 Includes one year's payroll growth using 2.75% payroll assumption for fiscal year ended June 30, 2018-21; 3% payroll assumption for fiscal years ended June 30, 2014-2017.

Notes to Schedules of Plan Contributions:

The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal years 2021-22 and 2020-21 were derived from the June 30, 2019 and 2018 funding valuation reports respectively.

Actuarial Cost Method Entry Age Normal Amortization Method/

Period For details, see June 30, 2018 Funding Valuation Report Asset Valuation Method Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report Inflation 2.50%

Salary Increases Varies by Entry Age and Service Payroll Growth 2.75%

Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Retirement Age The probabilities of Retirement are based on the 2017 Cal PERS Study for period from 1997 to 2015 Mortality The probabilities of Mortality are based on the 2017 Cal PERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-Retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

See accompanied independent auditors' report 12

CITY OF ANAHEIM Schedule of Changes in the Net Other OPEB Liability and Related Ratios Last Ten Fiscal Years 1 (Amounts in Thousands)

Measurement Period: 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 TOTAL OPEB LIABILITY Service cost $ 1,714 $ 1,667 $ 1,900 $ 1,840 $ 2,032 Interest on the Total OPEB Liability 16,840 16,741 19,577 19,229 19,550 Difference Between Expected and Actual Experience (45,405) (15,626) (14,382)

Changes of Assumptions 17,191 (7,583) 4,617 Benefit Payments, including Refunds of Employee Contributions (16,393) (17,541) (16,629) (16,061) (16,016)

Net Change in Total OPEB Liability (26,053) 867 (18,361) 5,008 (4,199)

Total OPEB Liability - Beginning 257,835 256,968 275,329 270,321 274,520 Total OPEB Liability - Ending (a) 231,782 257,835 256,968 275,329 270,321 PLAN FIDUCIARY NET POSITION Contributions - Employer 16,393 16,488 16,049 16,367 16,016 Net investment income 26,935 3,374 5,582 6,658 8,010 Benefit payments (16,393) (17,541) (16,629) (16,061) (16,016)

Administrative Expense (37) (47) (19) (44) (41)

Other Expense (111)

Net Change in Fiduciary Net Position 26,898 2,274 4,983 6,809 7,969 Plan Fiduciary Net Position - Beginning 97,735 95,461 90,478 83,669 75,700 Plan Fiduciary Net Position - Ending (b) 124,633 97,735 95,461 90,478 83,669 Plan Net OPEB Liability - Ending (a) - (b) $ 107,149 $ 160,100 $ 161,507 $ 184,851 $ 186,652 Plan Fiduciary Net Position as a percentage of the Total OPEB Liability 53.77% 37.91% 37.15% 32.86% 30.95%

Covered-Employee Payroll 2 $ 203,773 $ 209,656 $ 209,942 $ 209,435 203,473 Plan Net OPEB Liability as a Percentage of Covered-Employee Payroll 52.58% 76.36% 76.93% 88.26% 91.73%

1 Historical information is required only for measurement periods for which GASB 75 is applicable, Additional years will be presented as they become available.

2 OPEB provided and contributions made by the City are not dependent on payroll.

See accompanied independent auditors' report 12

CITY OF ANAHEIM Schedule of OPEB Plan Contributions Last Ten Fiscal Years 1 (In thousands)

Fiscal Year 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 Actuarially Determined Contribution (ADC) $ 14,523 $ 14,180 $ 16,488 $ 16,049 $ 16,367 $ 15,937 Contributions in relation to ADC $ 16,065 $ 16,393 $ 16,488 $ 16,049 $ 16,367 $ 16,016 Contribution deficiency (excess) $ (1,542) $ (2,213) $ (79)

Covered-Employee Payroll 2 $ 211,176 $ 203,733 $ 209,656 $ 209,942 $ 209,435 $ 203,473 Contributions as a Percentage of Covered-employee Payroll 7.61% 8.05% 7.86% 7.64% 7.82% 7.87%

1 Historical information is required only for measurement periods for which GASB 68 is applicable. Additional years will be presented as they become available.

2 OPEB provided and contribution to the OPEB plan by the City are not dependent on payroll.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal years ending June 30, 2021, and 2022 were from the July l, 2019 Actuarial Valuation Report, for June 30, 2019 and 2020 were from the July l, 2017 Actuarial Valuation Report, and for Fiscal Year ending June 30, 2017 and 2018 were from the July l, 2015 Actuarial Valuation Report.

Methods and assumptions used to determine contributions:

Actuarial Cost Method Entry Age Normal Close Group Level Dollar Basis.

Amortization Method/Period Level % of Pay Asset Valuation Method 15-year Smoothed value General Inflation Rate 2.5% for 2019-2021 and 2.75% for 2016-2021 Salary Increase 3.0% for 2019-2021 and 3.25% for 2016-2021 Long Term Return on Assets 6.0% for 2021, 6.7% for 2019-2020 and 7.28% for 2016-2019 Healthcare Trend Assumed to start at 6.5 in January 2021, fluctuating down to 4.0% per year for year 2076 & thereafter Retirement Age From SO to 75 Mortality Improvement McCleod Watts Scale 2020 applied generationally for 2019-2021 and 2015 for prior years See accompanied independent auditors' report 13

Nonmajor Governmental Funds

<i!Hf/ll/ .

Anaheim, California Nonmaior Governmental Funds

Nonmajor Governmental Funds SPECIAL REVENUE FUNDS are used to account for revenues derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes.

GAS TAX FUND-Established to account for the construction and maintenance of the road network system of the City. Financing is provided primarily by the City's share of State and local gasoline taxes.

Federal, State, and local regulations require that these gasoline taxes be used to improve and maintain streets, and includes programs intended to improve the air quality of the region.

WORKFORCE DEVELOPMENT FUND-Established to account for the City's involvement in Federal, State, and local programs to create jobs and provide the unemployed citizens in the Anaheim area with job training opportunities.

COMMUNITY DEVELOPMENT BLOCK GRANT FUND-Established to account for financing of the development of viable urban communities through the provision of decent housing, suitable living environments and economic opportunity, principally for persons of low and moderate income. Financing is provided by the Federal Housing and Urban Development (HUD) grants.

GRANTS FUND-Established to account for various grants requiring segregated fund accounting. Financing is provided by Federal, State, and local agencies.

ANAHEIM RESORT MAINTENANCE DISTRICT FUND-Established to account for the levy and collection of special assessments to pay the cost of annual maintenance and improvements within the district against those parcels that specifically benefit from the enhanced maintenance and improvement.

ANAHEIM TOURISM IMPROVEMENT DISTRICT FUND-Established to account for the collection of a special assessment supporting marketing, promotion and transit project costs in support of the City's tourism and convention industry.

NARCOTIC ASSET FORFEITURE FUND-Established to account for funds received from Federal and State agencies that are derived from monies and property seized by the Police Department in drug related incidents. These funds are used to supplement existing resources of the City's law enforcement activities.

LONG RANGE PROPERTY MANAGEMENT PLAN FUND-Established to account for future development and property management activities of the assets that were transferred from the Successor Agency to the Former Anaheim Redevelopment Agency's approved Long Range Property Management Plan.

DEBT SERVICE FUND is used to account for the accumulation of resources and the payment of principal and interest on general debt of the City and related entities.

MUNICIPAL FACILITIES FUND- Established to accumulate resources for payment of the principal and interest on the lease revenue bonds for the Fire Facilities and other various acquisitions and capital improvements.

ANAHEIM RESORT IMPROVEMENTS FUND-Established to accumulate resources for payment of the principal and interest on the lease revenue bonds for the Anaheim Resort improvements.

CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and construction of capital assets by the City, except for those financed by proprietary funds.

STREET CONSTRUCTION FUND-Established to account for transportation improvement construction in the City's right-of-way. Financing is provided primarily by Federal, State and local grants, and Measure M2 allocations by the County of Orange.

TRANSPORTATION IMPROVEMENT PROJECT FUND-Established to account for transportation improvement projects in the City. Financing is provided by Federal, State and local agencies.

DEVELOPMENT IMPACT PROJECTS FUND-Established to account for infrastructure improvements, primarily in the Platinum Triangle area, which provide development opportunities for high density, mixed use, office, restaurant, and residential projects. Financing is provided primarily by development impact fees.

COMMUNITY SERVICES FACILITIES FUND- Established to account for the development of new park sites, playgrounds and library facilities. Financing is provided by Federal and State grant programs, in conjunction with fees charged to residential and commercial developers. Much of this revenue is used to support the capital construction of parks and other recreational facilities throughout the City.

STORM DRAIN CONSTRUCTION FUND-Established to account for the City's storm drain construction. Financing is provided by drainage assessment fees charged to residential and commercial developers.

OTHER CAPITAL IMPROVEMENTS FUND-Established to account for various capital projects as determined by the City Council. Currently, financing for these projects is provided by bond proceeds and subsidies from the General Fund.

MELLO-ROOS PROJECTS FUND-Established to account for road, sewer and water improvements in the community facility districts. Financing is provided by the sale of special tax bonds that are secured by and payable from the proceeds of an annual special assessment on the properties within the district.

CITY OF ANAHEIM Combining Balance Sheet Nonmajor Governmental Funds by Fund Type June 30 1 2022 (In thousands}

Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds ASSETS Cash and cash equivalents $ 20,121 $ 345 $ 20,509 $ 40,975 Investments 51,665 894 53,184 105,743 Accounts receivable, net 2,489 2,489 Accrued interest receivable 316 55 276 647 Due from other funds 11,409 11,409 Due from other governments 11,007 13,564 24,571 Land held for resale 15,295 15,295 Prepaid and other assets 186 186 Restricted cash and cash equivalents 82 64,195 13,838 78,115 Restricted investments 56,719 23,146 79,865 Due from Successor Agency 3,295 1,705 5,000 Lease receivable 9,482 9,482 Notes receivable, net 16775 16775 Total assets $ 130,713 $ 122,208 $ 137 631 $ 390,552 LIABILITIES Accounts payable $ 10,090 $ 1,082 $ 11,172 Wages payable 243 47 290 Deposits 273 1,200 1,473 Unearned revenues 22 1,834 1,856 Due to other funds 12 542 12 542 Total liabilities 10 628 16705 27 333 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 3,063 13,262 16,325 Unearned lease revenues 9,340 9,340 Unavailable resources- long-term notes receivable 20070 1705 21775 Total deferred inflows of resources 32473 H,96Z 47 440 FUND BALANCES Nonspendable prepaid and other assets 186 186 Restricted:

Anaheim Resort maintenance and improvement 6,441 6,441 Capital projects 3,811 3,811 Community and economic development projects 21,552 21,552 Debt service $ 120,970 120,970 Development impact projects 92,108 92,108 Grant purposes 8,973 8,973 Homebuyer assistance program 12,913 12,913 Streets, roads and transportation improvement projects 38,310 38,310 Committed for neighborhood and community projects 3,943 3,943 Assigned:

Debt service 1,238 1,238 Capital projects 18,305 18,305 Other purposes 98 98 Unassigned (861} (12 208} (13,069}

Total fund balances 87 612 122 208 105 959 315 779 Total liabilities, deferred inflows of resources, and fund balances $ 130,713 $ 122,208 $ 137,631 $ 390,552 See accompanied independent auditors' report 13

CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds by Fund Type Year Ended June 301 2022 (In thousands}

Nonmajor Nonmajor Total Special Nonmajor Capital Nonmajor Revenue Debt Service Projects Governmental Funds Funds Funds Funds Revenues:

Licenses, fees and permits $ 3 $ 6,085 $ 6,088 Intergovernmental revenues 49,814 2,139 51,953 Charges for services 27,141 205 27,346 Use of money and property 4,829 $ 51 (19) 4,861 Lease revenues 433 433 Others 32 1 33 Contribution from property owners 1534 1534 Total revenues 82 252 51 9945 92248 Expenditures:

Current:

City Attorney 91 91 City Clerk 5 5 Finance 31 31 Police 4,375 29 4,404 Fire & Rescue 242 4 246 Housing & Community Development 11,245 10 11,255 Economic Development 5,945 35 5,980 Planning & Building 1,045 259 1,304 Public Works 11,080 1,186 12,266 Community Services 675 568 1,243 Convention, Sports and Entertainment 16,399 16,399 Capital outlay 15,004 3,195 18,199 Debt service:

Principal retirement 1,238 15,586 1,636 18,460 Interest charges 354 30544 200 31098 Total expenditures 6Z,693 46,161 Z,12Z 120,981 Excess (deficiency) of revenues over (under) expenditures 14559 (46,110) 2818 (28,733)

Other financing sources (uses):

Transfers in 927 87,109 14,301 102,337 Transfers out (10,278) (1,508) (11,786)

Issuance of refunding bonds 23,546 23,546 Payment to refunded bond escrow agent (23,348) (23,348)

Bond issuance costs (198) (198)

Total other financing sources {uses) (9,351) 87109 12 793 90 551 Net change in fund balances 5,208 40,999 15,611 61,818 Fund balances at beginning of year 82404 81,209 90348 253,961 Fund balances at end of year $ 87,612 $ 122,208 $ 105,959 $ 315,779 See accompanied independent auditors' report 13

CITY OF ANAHEIM Combining Balance Sheet Nonmajor Special Revenue Funds June 301 2022 (In thousands}

Community Anaheim Anaheim Long Range Development Resort Tourism Narcotic Property Gas Workforce Block Maintenance Improvement Asset Management Tax Develo~ment Grant Grants District District Forfeiture Plan Total ASSETS Cash and cash equivalents $ 6,275 $ 67 $ 439 $ 4,925 $ 1,905 $ 4,409 $ 40 $ 2,061 $ 20,121 Investments 16,272 175 1,098 12,770 4,939 11,435 105 4,871 51,665 Accounts receivable, net 2 2,477 10 2,489 Accrued interest receivable 102 86 30 63 1 34 316 Notes receivable, net 2,062 14,713 16,775 Due from other governments 4,027 231 1,189 5,556 4 11,007 Prepaid and other assets 35 72 79 186 Land held for resale 15,295 15,295 Restricted cash and cash equivalents 82 82 Due from Successor Agency 3,295 3,295 Lease receivable 90 9392 9482 Total assets $ 26.711 $ 565 $ 8,083 $ 38,122 $ 6,878 $ 18,384 $ 228 $ 31.742 $ 130.713 LIABILITIES Accounts payable $ 2,403 $ 261 $ 911 $ 1,558 $ 420 $ 4,120 $ 417 $ 10,090 Wages payable 109 25 36 47 17 2 7 243 Due to other Funds Unearned revenues 22 22 Deposits 273 273 Total liabilities 2 512 286 947 1605 437 4122 719 10 628 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 116 93 193 2,521 140 3,063 Unearned leases revenues 88 9,252 9,340 Unavailable resources- long-term notes &

loans receivable 5357 14 713 20070 Total deferred inflows of resources 116 181 5 550 17 234 9392 32473 FUND BALANCES Nonspendable prepaid and other assets 35 72 79 186 Restricted:

Anaheim Resort maintenance and improvement 6,441 6,441 Economic development projects 21,552 21,552 Grant purposes 1,586 7,159 $ 228 8,973 Homebuyer assistance program 12,913 12,913 Streets, roads and transportation improvement projects 24,048 14,262 38,310 Assigned for other purposes 98 98 Unassigned {861) {861)

Total fund balances 24083 98 1,58§ 19283 6441 J.4,262 228 2J..63l, 87612 Total liabilities, deferred inflows of resources, and fund balances $ 26.711 $ 565 $ 8.083 $ 38122 $ 6,878 $ 18.384 $ 228 $ 31.742 $ 130 713 See accompanied independent auditors' report 13

CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds Vear Ended June 301 2022 (In thousands}

Long Community Anaheim Anaheim Range Development Resort Tourism Narcotic Property Gas Workforce Block Maintenance Improvement Asset Management Tax Develogment Grant Grants District District Forfeiture Plan Total Revenues:

Licenses, fees and permits $ 3 $ 3 Intergovernmental revenues 23,060 $ 2,752 $ 4,630 $ 19,331 $ 41 49,814 Charges for services 76 8 $ 4,977 $ 22,080 27,141 Use of money and property (619) 129 1,989 2,132 (205) (430) 14 $ 1,819 4,829 Lease revenues 111 322 433 Other 3 8 1 5 10 5 32 Total revenues 22,523 3000 6619 21472 4,777 21660 55 2,146 82,252 Expenditures:

Current:

City Attorney 91 91 Police 4,252 123 4,375 Fire & Rescue 14 228 242 Housing & Community Development 2,859 1,514 6,413 459 11,245 Economic Development 5,945 5,945 Planning & Building 1,043 2 1,045 Public Works 5,902 4,365 813 11,080 Community Services 527 148 675 Convention, Sports &

Entertainment 16,399 16,399 Capital outlay 12,939 28 768 161 428 680 15,004 Debt service:

Principal retirement 1,238 1,238 Interest charges 354 354 Total expenditures 18,841 2887 5 549 11,202 4,793 17894 123 6404 67,693 Excess (deficiency) of revenues over (under) expenditures 3,682 113 1070 10270 116) 3 766 168) 14,258) 14.559 Other financing sources (uses):

Transfers in 93 25 487 200 122 927 Transfers out 14000) 16,057) 1221) 110 278)

Total other financing sources (uses) 13.907) 25 15,570) 200 199) 19,351)

Net change in fund balances (225) 138 1,070 4.700 184 3.667 (68) (4,258) 5,208 Fund balances(deficit) at beginning of year 24,308 140) 516 14.583 6 257 10 595 296 25,889 82404 Fund balances at end of year $ 24,083 $ 98 $ 1,586 $ 19.283 $ 6,441 $ 14.262 $ 228 $ 21,631 $ 87.612 See accompanied independent auditors" report 13

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Vear Ended June 301 2022 (In thousands}

Gas Tax Workforce Develoement Final Actual on Final Actual on Budgeted Budgetary Variance with Budgeted Budgetary Variance with Amounts Basis Final Budget Amounts Basis Final Budget Revenues:

Licenses, fees and permits $ 7 3 $ (4)

Intergovernmental revenues 22,022 23,060 1,038 $ 8,372 2,752 $ (5,620)

Charges for services 72 76 4 Use of money and property (619) (619) 129 129 Lease revenues 111 111 Other 1 3 2 8 8 Total revenues 22,102 22,523 421 8,372 3,000 (5,372)

Expenditures:

City Attorney Police Fire & Rescue Housing & Community Development 8,855 2,887 (5,968)

Economic Development Planning & Building Public Works 36,595 24,867 (11,728)

Community Services Convention, Sports & Entertainment Total expenditures 36,595 24,867 (11,728) 8,855 2,887 (5,968)

Excess (deficiency) of revenues over (under) expenditures (14,493) (2,344) 12,149 (483) 113 596 Other financing sources (uses):

Transfers in 66 93 27 523 25 (498)

Transfers out (4,000) (4,000)

Total other financing sources (uses) (3,934) (3,907) 27 523 25 (498)

Net change in fund balances (18,427) (6,251) 12,176 40 138 98 Fund balances at beginning of year 24,308 24,308 (40) (40)

Fund balance at end of year $ 5,881 18,057 $ 12,176 $ 98 $ 98 Adjustment to reconcile to GAAP:

Encumbrance 6,026 Ending fund balance - GAAP basis $ 24,083 $ 98 (continued) 13

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Year Ended June 301 2022 (In thousands}

Communit}'. Develoement Block Grant Grants Final Actual on Final Actual on Budgeted Budgetary Variance with Budgeted Budgetary Variance with Amounts Basis Final Budget Amounts Basis Final Budget Revenues:

Intergovernmental revenues $ 9,870 $ 4,630 $ (5,240) $ 45,107 $ 19,331 $ (25,776)

Charges for services 8 8 Use of money and property 1,764 1,989 225 1,448 2,132 684 Other 1 1 Total revenues 11,634 6,619 (5,015) 46,555 21,472 (25,083)

Expenditures:

City Attorney 99 91 (8)

Police 13,168 4,405 (8,763)

Fire & Rescue 17 14 (3) 642 325 (317)

Housing & Community Development 9,255 3,819 (5,436) 24,526 6,413 (18,113)

Economic Development 499 69 (430)

Planning & Building 1,453 1,043 (410)

Public Works Community Services 827 1,160 333 410 148 (262)

Convention, Sports & Entertainment Total expenditures 12,150 6,196 (5,954} 38,746 11,291 (27,455)

Excess (deficiency) of revenues over (under) expenditures (516) 423 939 7,809 10,181 2,372 Other financing sources (uses):

Transfers in 487 487 Transfers out (13,171) (6,057} 7,114 Total other financing sources (uses) (13,171) (5,570) 7,601 Net change in fund balances (516) 423 939 (5,362) 4,611 9,973 Fund balances at beginning of year 516 516 14,583 14,583 Fund balances at end of year $ 939 $ 939 $ 9,221 19,194 $ 9,973 Adjustment to reconcile to GAAP:

Encumbrance 647 89 Ending fund balance - GAAP basis $ 1,586 $ 19,283 (continued) 13

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Year Ended June 301 2022 (In thousands}

Anaheim Resort Maintenance District Anaheim Tourism lmerovement District Final Budgeted Actual on Variance with Final Budgeted Actual on Variance with Amounts Budgeta~ Basis Final Budget Amounts Budgeter}'. Basis Final Budget Revenues:

Charges for services $ 5,047 $ 4,977 $ (70) $ 18,220 $ 22,080 $ 3,860 Use of money and property 106 (205) (311) 200 (430) (630)

Other 14 5 (9) 10 10 Total revenues 5,167 4,777 (390) 18,420 21,660 3,240 Expenditures:

Economic Development Planning & Building 2 2 Public Works 4,928 4,793 (135) 12,486 1,500 (10,986)

Convention, Sports & Entertainment 16,399 16,399 Total expenditures 4,928 4,793 (135) 28,887 17,901 (10,986)

Excess (deficiency) of revenues over (under) expenditures 239 (16) (255) (10,467) 3,759 14,226 Other financing sources (uses):

Transfers in 200 200 122 122 Transfers out (128) (221) (93)

Total other financing sources (uses) 200 200 (128) (99) 29 Net change in fund balances 439 184 (255) (10,595) 3,660 14,255 Fund balances at beginning of year 6,257 6,257 10,595 10,595 Fund balances at end of year $ 6,696 6,441 $ {255} 14,255 $ 14,255 Adjustment to reconcile to GAAP basis:

Encumbrance 7 Ending fund balance - GAAP basis $ 6,441 $ 14,262 (Continued)

See accompanied independent auditors' report 13

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Budgetary Basis Actual - All Nonmajor Special Revenue Funds Vear Ended June 301 2022 (In thousands}

Narcotic Asset Forfeiture Long Range Proeerty Management Plan Final Budgeted Actual on Variance with Final Budgeted Actual on Variance with Amounts Budgetary Basis Final Budget Amounts Budgetart Basis Final Budget Revenues:

Intergovernmental revenues $ 258 $ 41 $ (217)

Use of money and property 8 14 6 $ 1,919 $ 1,819 $ (100)

Lease revenues 322 322 Other 5 5 Total revenues 266 55 (211) 2,241 2,146 (95)

Expenditures:

City Attorney Police 328 123 (205)

Fire & Rescue Housing & Community Development 459 459 Economic Development 9,661 5,951 (3,710)

Planning & Building Public Works Community Services Convention, Sports & Entertainment Total expenditures 328 123 (205) 10,120 6,410 (3,710)

Excess (deficiency) of revenues over (under) expenditures (62) (68) (6) (7,879) (4,264) 3,615 Other financing sources (uses):

Transfers in Transfers out Total other financing sources (uses)

Net change in fund balance (deficits) (62) (68) (6) (7,879) (4,264) 3,615 Fund balances (deficits) at beginning of year 296 296 25,889 25,889 Fund balances at end of year $ 234 228 $ {6} $ 18,010 21,625 $ 3,615 Adjustment to reconcile to GAAP basis:

Book value on the sale of land held for resale 6 Ending fund balance - GAAP basis $ 228 $ 21,631 See accompanied independent auditors' report 14

CITY OF ANAHEIM Balance Sheet Nonmajor Debt Service Funds June 30, 2022 (In thousands)

Anaheim Municipal Resort Facilities Improvements Total ASSETS Cash and cash equivalents $ 345 $ 345 Investments 894 894 Accrued interest receivable 8 $ 47 55 Restricted cash and cash equivalents 2,341 61,854 64,195 Restricted investments 3,576 53,143 56,719 Total assets $ 7,164 $ 115,044 $ 122,208 Fund balances:

Nonspendable - prepaid and other assets Restricted for debt service $ 5,926 $ 115,044 $ 120,970 Assigned for debt service 1,238 1,238 Total fund balances 7,164 115,044 122,208 Total liabilities and fund balances $ 7,164 $ 115,044 =$====12=2=,2=0=8 See accompanied independent auditors' report 14

CITY OF ANAHEIM Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Debt Service Funds Year Ended June 301 2022 (In thousands)

Anaheim Municipal Resort Facilities lmerovements Total Revenues:

Use of money and property $ (33) $ 84 $ 51 Total revenues (33) 84 51 Expenditures:

Current:

Finance 1 30 31 Debt service:

Principal retirement 559 15,027 15,586 Interest charges 2,596 27,948 30,544 Total expenditures 3,156 43,005 46,161 Deficiency of revenues under expenditures (3,189) (42,921) (46,110)

Other financing sources:

Transfers in 7,977 79,132 87,109 Transfers out Issuance of refunding bonds 23,546 23,546 Payment to refunding bonds escrow agent (23,348) (23,348)

Bond issuance costs (198) (198)

Total other financing sources 7,977 79,132 87,109 Net change in fund balances 4,788 36,211 40,999 Fund balances at beginning of year 2,376 78,833 81,209 Fund balances at end of year $ 7,164 $ 115,044 $ 122,208 See accompanied independent auditors' report 14

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Debt Service Funds Year Ended June 301 2022 (In thousands}

Municieal Facilities Anaheim Resort lmerovements Final Variance Final Variance Budgeted Actual with Final Budgeted Actual with Final Amounts Amounts Budget Amounts Amounts Budget Revenues:

Use of money and property $ (33) $ (33) $ 200 $ 84 $ (116)

Total revenues (33) (33) 200 84 (116)

Expenditures:

Finance $ 3,156 3,156 43,005 43,005 Total expenditures 3,156 3,156 43,005 43,005 Excess (deficiency) of revenues over (under) expenditures (3,156) (3,189) (33) (42,805) (42,921) (116)

Other financing sources:

Transfers in 1,128 7,977 6,849 45,368 79,132 33,764 Transfers out Issuance of refunding bonds 23,546 23,546 Payments to refunding bond escrow agent (23,348) (23,348)

Bond issuance costs (198) (198)

Total other financing sources 1,128 7,977 6,849 45,368 79,132 33,764 Net change in fund balances (2,028) 4,788 6,816 2,563 36,211 33,648 Fund balances at beginning of year 2,376 2,376 78,833 78,833 Fund balances at end of year $ 348 $ 7,164 $ 6,816 $ 81,396 $ 115,044 $ 33,648 See accompanied independent auditors' report 14

CITY OF ANAHEIM Combining Balance Sheet Nonmajor Capital Projects Funds June 30 1 2022 (In thousands}

Transportation Development Community Storm Other Streets Improvement Impact Services Drain Capital Mello-Roos Construction Projects Projects Facilities Construction lmgrovements Projects Total ASSETS Cash and cash equivalents $ 255 $ 15 $ 7,794 $ 3,228 $ 806 $ 5,569 $ 2,842 $ 20,509 Investments 659 38 20,213 8,372 2,088 14,443 7,371 53,184 Accounts receivable, net Accrued interest receivable 8 105 49 13 49 52 276 Due from other funds 8,059 3,350 11,409 Due from other governments 13,310 254 13,564 Restricted cash and cash equivalents 2,624 11,214 13,838 Restricted investment 23,146 23,146 Due from the Successor Agency 1705 1705 Total assets $ 14,232 $ 307 $ 36,171 $ 11,649 $ 2,907 $ 27,740 $ 44,625 $ 137,631 LIABILITIES Accounts payable $ 209 $ 11 $ 106 $ 353 $ 192 $ 183 $ 28 $ 1,082 Wages payable 22 8 5 3 9 47 Deposits 1,200 1,200 Unearned revenues 1,834 1,834 Due to other funds 11058 351 1133 12,542 Total liabilities 13,123 362 114 1491 1392 186 37 16705 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 13,008 254 13,262 Unavailable resources-long-term notes &

receivable 1705 1705 Total deferred inflows of resources 13,008 254 1705 14967 FUND BALANCES Restricted:

Capital projects 3,811 3,811 Development impact projects 36,057 9,948 1,515 44,588 92,108 Committed for neighborhood and community projects 3,943 3,943 Assigned for Capital projects 210 18,095 18,305 Unassigned (11,899} (309} (12,208}

Total fund balances (deficits) (11,899} (309} 36057 10158 1515 25849 44588 105,959 Total liabilities, deferred inflows of resources, and fund balances (deficits) $ 14,232 $ 307 $ 36,171 $ 11,649 $ 2,907 $ 27,740 $ 44,625 $ 137,631 See accompanied independent auditors' report 14

CITY OF ANAHEIM Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)

Nonmajor Capital Projects Funds Year Ended June 301 2022 (In thousandsl Transportation Development Community Storm Other Streets Improvement Impact Services Drain Capital Mello-Roos Construction Projects Projects Facilities Construction lmerovements Projects Total Revenues:

Licenses, fees and permits $ 3,413 $ 2,372 $ 300 $ 6,085 Intergovernmental revenues $ 2,084 55 2,139 Charges for services 205 205 Use of money and property 317 $ 8 (1,018) 188 $ 48 726 $ (288) (19)

Other 1 1 Contribution from property owners 1534 1,534 Total revenues 2606 8 2 396 2615 48 1026 1246 9945 Expenditures:

Current:

City clerk 5 5 Police 29 29 Fire & Rescue 4 4 Housing & Community Development 10 10 Economic Development 35 35 Planning & Building 259 259 Public Works 792 68 217 2 85 22 1,186 Community Services 395 111 62 568 Capital outlay 976 820 467 353 579 3,195 Debt service:

Principal retirement 1,636 1,636 Interest charges 200 200 Total expenditures 1768 68 1465 578 2 2645 601 7127 Excess (deficiency) of revenues over (under) expenditures 838 (60) 931 2037 46 11,619) 645 2818 Other financing sources (uses):

Transfers in 248 14,053 14,301 Transfers out (128) 1122) (7) (1,251) 11,508)

Total other financing sources 248 (128) 1122) (7) 14053 11,251) 12 793 Net change in fund balances 1,086 (188) 809 2,037 39 12,434 (606) 15,611 Fund balances (deficits) at beginning of year 112,985) 1121) 35 248 8121 1476 13415 45194 90348 Fund balances (deficits) at end of year $ 111,899) $ 1309} $ 36,057 $ 10,158 $ 1,515 $ 25,849 $ 44,588 $ 105,959 See accompanied independent auditors' report 14

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)

Budget and Budgetary Basis Actual - All Capital Projects Funds Year Ended June 301 2022 (In thousands}

Streets Construction Transeortation lmerovement Projects Final Actual Variance Final Actual Variance Budgeted on Budgetary with Final Budgeted on Budgetary with Final Amounts Basis Budget Amounts Basis Budget Revenues:

Licenses, fees and permits Intergovernmental revenues $ 24,357 $ 2,084 $ (22,273) $ 1,035 $ (1,035)

Charges for services 205 205 Use of money and property 317 317 $ 8 8 Total revenues 24,357 2,606 (21,751) 1,035 8 (1,027)

Expenditures:

City clerk Finance Police Fire & Rescue Housing & Community Development Economic Development Planning & Building Public Works 9,521 1,778 (7,743) 754 68 (686)

Community Services Total expenditures 9,521 1,778 (7,743) 754 68 (686)

Excess (deficiency) of revenues over (under) expenditures 14,836 828 (14,008) 281 (60) (341)

Other financing sources (uses):

Transfers in 248 248 Transfers out (128) (128)

Total other financing sources 248 248 (128) (128)

Net change in fund balances 14,836 1,076 (13,760) 281 (188) (469)

Fund balances at beginning of year (12,985) (12,985) (121) (121)

Fund balances at end of year $ 1,851 (11,909) $ (13,760) $ 160 (309) $ (469)

Adjustment to reconcile to GMP:

Encumbrance 10 Ending fund balance - GMP basis $ (11,899) $ (309)

(continued) 14

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)

Budget and Budgetary Basis Actual - All Capital Projects Funds Year Ended June 301 2022 (In thousands}

Develo12ment lm12act Projects Communitll Services Facilities Final Actual Variance Final Actual Variance Budgeted on Budgetary with Final Budgeted on Budgetary with Final Amounts Basis Budget Amounts Basis Budget Revenues:

Licenses, fees and permits $ 3,360 $ 3,413 $ 53 $ 800 $ 1,916 $ 1,116 Intergovernmental revenues 960 55 (905)

Charges for services Use of money and property 209 (1,018) (1,227) 324 188 (136)

Other 1 1 Total revenues 3 569 2 396 {1,173) 2084 2159 75 Expenditures:

City clerk Finance Police 320 29 (291)

Fire & Rescue 1,569 126 (1,443)

Community & Economic Development Planning & Building Public Works 12,302 945 (11,357)

Community Services 1187 436 (751} 5,802 734 (5,068)

Total expenditures 15 378 1536 (13,842} 5,802 734 {5,068}

Excess (deficiency) of revenues over (under}

expenditures {11,809} 860 12,669 (3,718) 1425 5143 Other financing sources (uses):

Transfers in Transfers out (122} (122}

Total other financing sources (uses) (122} (122}

Net change in fund balances (11,809) 738 12,547 (3,718) 1,425 5,143 Fund balances at beginning of year 35248 35,248 8,121 8121 Fund balances at end of year $ 23,439 35,986 $ 12,547 $ 4,403 9,546 $ 5,143 Adjustment to reconcile to GAAP:

Encumbrance 71 156 Park fee credit provided 456 Ending fund balance - GAAP basis $ 36,057 $ 10,158 (continued) 14

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)

Budget and Budgetary Basis Actual - All Capital Projects Funds Vear Ended June 30, 2022 (In thousands)

Storm Drain Construction Other Capital Improvements Actual on Actual on Final Budgeted Budgetary Variance with Final Budgeted Budgetary Variance with Amounts Basis Final Budget Amounts Basis Final Budget Revenues:

Licenses, fees and permits $ 300 $ 300 Intergovernmental revenues $ 1,300 (1,300)

Use of money and property $ 70 $ 48 $ (22) 1,051 726 (325)

Other Total revenues 70 48 (22) 2,351 1,026 (1,325)

Expenditures:

City clerk 5 5 Finance Police 517 517 Fire & rescue 277 269 (8)

Housing & Community Development 1,468 1,016 (452)

Economic Development 1,669 299 (1,370)

Planning & Building 878 274 (604)

Public Works 2 2 190 190 Community Services 292 86 (206)

Total expenditures 2 2 5,296 2,656 (2,640)

Excess (deficiency) of revenues over (under) expenditures 68 46 (22) (2,945) (1,630) 1,315 Other financing sources (uses):

Transfers in 1,053 14,053 13,000 Transfers out (7) (7)

Total other financing sources (uses) (7) (7) 1,053 14,053 13,000 Net change in fund balances 68 39 (29) (1,892) 12,423 14,315 Fund balances at beginning of year 1,476 1,476 13,415 13,415 Fund balances at end of year $ 1,544 1,515 =$===!:(2~9) $ 11,523 25,838 =$===1=4!:,3=1=5 Adjustment to reconcile to GAAP:

Encumbrance 11 Ending fund balance - GAAP basis $ 1,515 $ 25,849 (continued} 14

CITY OF ANAHEIM Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)

Budget and Budgetary Basis Actual - All Capital Projects Funds Year Ended June 30, 2022 (In thousands}

Mello-Roos Projects Final Actual on Budgeted Budgetary Variance with Amounts Basis Final Budget Revenues:

Licenses, fees and permits Intergovernmental revenues Charges for services Use of money and property $ (288) $ (288)

Contribution from property owners 1,534 1,534 Total revenues 1,246 1,246 Expenditures:

City clerk Finance Police Fire & Rescue Housing & Community & Development Economic Development Planning & Building Public Works $ 26,915 601 (26,314)

Community Services Total expenditures 26,915 601 (26,314)

Excess (deficiency) of revenues over (under) expenditures (26,915) 645 27,560 Other financing sources (uses):

Transfers in Transfers out (1,251) (1,251)

Total other financing sources (uses) (1,251) (1,251)

Net change in fund balances (26,915) (606) 26,309 Fund balances at beginning of year 45,194 45,194 Fund balances at end of year $ 18,279 44,588 $ 26,309 Adjustment to reconcile to GAAP:

Encumbrance Ending fund balance - GAAP basis $ 44,588 See accompanied independent auditors' report 14

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Internal Service Funds Anaheim, California Internal Service Funds

Internal Service Funds INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to City departments on a cost-reimbursement basis (including depreciation).

GENERAL BENEFITS AND INSURANCE FUND- Established to account for employee compensated absences, retirement and health benefits, and self-insurance programs.

MOTORIZED EQUIPMENT FUND- Established to account for motorized equipment used by City departments.

INFORMATION AND COMMUNICATION SERVICES FUND- Established to account for data processing and communication services to City departments.

MUNICIPAL FACILITIES MAINTENANCE FUND- Established to account for City building maintenance services and equipment used by City departments.

CITY OF ANAHEIM Combining Statement of Net Position Internal Service Funds June 30, 2022 (In thousands)

General Information and Municipal Benefits Motorized Communication Facilities and Insurance Egui!!ment Services Maintenance Total ASSETS Current assets:

Cash and cash equivalents $ 14,448 $ 3,279 $ 404 $ 2,497 $ 20,628 Investments 37,468 8,499 1,049 6,476 53,492 Accounts receivable, net 2,409 91 2,500 Accrued interest receivable 154 51 11 216 Inventories 1,332 250 1,582 Prepaid and other assets 20 21 1267 1308 Total current assets 54499 13 223 2220 9234 29 726 Noncurrent assets:

Restricted cash and cash equivalents 6,500 6,500 lnterfund receivable, less current portion 33,031 33,031 Capital assets:

Buildings, structures and improvements 3,230 8,079 11,309 Machinery and equipment 93 45,610 21,630 4,524 71,857 Rights to use leased equipment 2,683 2,683 Construction in progress 1,274 471 1,745 Less accumulated depreciation (84} (33 280} (16 763} (7028) (57 155!

Ca pita I assets, net 9 15 560 8824 6 046 30439 Total noncurrent assets 33040 15 560 15 324 6 04!i 69970 Total assets 87 539 28833 18044 15 280 149 696 DEFERRED OUTFLOW OF RESOUCES Deferred OPEB related items 558 535 349 675 2,117 Deferred pension related items 1977 1132 852 1307 5273 Total deferred outflow of resources 2 535 1 !i67 1206 1982 7390 LIABILITIES Current liabilities:

Accounts payable 2,962 788 4,950 1,316 10,016 Wages payable 5,061 89 57 112 5,319 Interest payable 43 43 Due to other Funds 39 39 Lease payable 886 886 Compensated absences 17,495 17,495 Self-insurance liability 13,826 13,826 Long-term debts 11 1,240 1,251 Unearned revenues 2431 2431 Total current liabilities 41775 888 7176 1467 51306 Noncurrent liabilities:

Lease payable, less current portion 574 574 Compensated absences, less current portion 6,257 6,257 Self-insurance liability, less current portion 44,693 44,693 Long-term debts, less current portion 41 5,260 5,301 Net OPEB liability 1,463 1,606 970 1,641 5,680 Net pension liability 5725 4800 4303 5449 20272 Total noncurrent liabilities 58138 6447 11107 7090 82 782 Total liabilities 99913 7 335 18 283 8 557 1340!l8 DEFERRED INFLOW OF RESOURCES Deferred OPEB related items 1,028 1,397 798 1,232 4,455 Deferred pension related items 3121 2623 2 325 2 797 10866 Total deferred inflow of resources 4149 4020 3123 4029 15 321 NET POSITION Net investment in capital assets 9 15,454 7,142 5,790 28,395 Unrestricted, (13 997) 3 691 (9298} (1114) (20,718}

Total net position $ (13,988} $ 19,145 $ {2,156) $ 4,676 $ 7,677 See accompanied independent auditors' report 15

CITY OF ANAHEIM Combining Statement of Revenues, Expenses and Changes in Net Position (deficits}

Internal Service Funds Year Ended June 30, 2022 (In thousands)

General Information Benefits and Municipal and Motorized Communication Facilities Insurance Eguigment Services Maintenance Total Operating revenues:

Charges for services $ 97,990 $ 12,500 $ 26,925 $ 16,868 $ 154,283 Other 204 17 221 Total operating revenues 98,194 12,517 26,925 16,868 154,504 Operating expenses:

Salaries and wages 4,082 2,804 1,978 3,800 12,664 Maintenance and operations 3,988 6,832 21,148 10,053 42,021 Insurance premiums and claims 23,676 23,676 Compensated absences and other benefits 75,966 75,966 Depreciation 1 2,608 1,990 435 5,034 Total operating expenses 107,713 12,244 25,116 14,288 159,361 Operating income (loss) (9,519) 273 1,809 2,580 (4,857)

Nonoperating income (expenses):

Investment income (1,655) (337) 22 (78) (2,048)

Interest expense (1) (54) (55)

Gain (loss) from disposal of capital assets 59 59 Total nonoperating income (loss) (1,655) (279) (32) (78) (2,044)

Income (Loss) (11,174) (6) 1,777 2,502 (6,901)

Transfer in 5,740 5,740 Transfer out (28) (28)

Change in net position (11,174) (34) 1,777 8,242 (1,189)

Net position (deficits) at beginning of year, as restated (2,814) 19,179 (3,933) (3,566) 8,866 Net position (deficits) at end of year $ (13,988} $ 19,145 $ (2,156} $ 4,676 $ 7,677 See accompanied independent auditors' report 15

CITY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2022 (In thousands)

Information and Municipal General Benefits Motorized Communication Facilities and Insurance Eguii;iment Services Maintenance Total Cash flows from operating activities:

Receipts from interfund services provided $ 97,990 $ 12,088 $ 26,925 $ 16,868 $ 153,871 Payments to suppliers (2,091) (5,844) (17,262) (9,177) (34,374)

Payments for salaries and wages to employees (4,550) (4,051) (2,977) (4,616) (16,194)

Payments for interfund services used (1,876) (961) (1,190) (1,040) (5,067)

Payments for insurance premiums and claims (21,975) (21,975)

Payments for compensated absences and other benefits (77,260) (77,260)

Other receipts 204 434 638 Net cash provided by (used for) operating activities (9,558} 1666 5496 2 035 (361}

Cash flows from noncapital financing activities:

Receipt of interfund balances 22 22 Payment of interfund balances (310) (47) (357)

Transfer in (28) (28)

Transfer out 5740 5 740 Net cash provided by (used for) noncapital financing activities 22 (28} (310} 5693 5377 Cash flows from capital and related financing activities:

Proceeds from sale of capital assets 83 83 Capital purchases (923) (3,073) (215) (4,211)

Proceeds from issuance of loan payable 6,500 6,500 Principal payments on long-term debt (11) (11)

Principal payments on leases (1,223) (1,223)

Interest payments (1} {11} (12}

Net cash provided by (used for) capital and related financing activities (852} 2193 {215} 1126 Cash flows from investing activities:

Purchase of investment securities (12,587) (2,856) (615) (5,424) (21,482)

Proceeds from sale and maturity of investment securities 20,017 2,336 22,353 Interest received 815 185 4 22 1026 Net cash provided by (used for) investing activities 8245 (335} (611} {5,402} 1897 Increase (decrease) in cash and cash equivalents (1,291) 451 6,768 2,111 8,039 Cash and cash equivalents at beginning of the year 15739 2828 136 386 19089 Cash and cash equivalents at end of the year $ 14,448 $ 3,279 $ 6,904 $ 2,497 $ 27,128 (continued) 15

CITY OF ANAHEIM Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2022 (In thousands) (continued)

General Information Benefits and Municipal and Motorized Communication Facilities Insurance Egui12ment Services Maintenance Total Reconciliation of operating income to net cash provided by operating activities:

Operating income (loss) $ (9,519) $ 273 $ 1,809 $ 2,580 $ (4,857)

Adjustment to reconcile operating income to net cash provided by operating activities:

Depreciation 1 2,608 1,990 435 5,034 Changes in assets, deferred outflows of resources, liabilities and deferred inflows of resources:

Accounts receivable 1,932 5 1,937 Inventories (304) (16) (320)

Prepaid and other assets 11 521 532 Accounts payable (856) 320 2,175 (148) 1,491 Wages and benefit payable (389) (1,247) (999) (816) (3,451)

Unearned revenues 126 126 Compensated absences (253) (253)

Self-insurance liability (600) (600)

Total adjustments (39) 1,393 3,687 (545) 4,496 Net cash provided by operating activities $ {9,558} $ 1,666 $ 5,496 $ 2,035 $ {361}

Schedule of noncash financing and investing activities:

Capital assets financed through leases $ 834 $ 834 Increase (decrease) in fair value of investments $ (2,419) $ (522) 27 $ (109) (3,023}

Increase in accounts payable related to capital asset purchases 54 222 256 53_2 See accompanied independent auditors' report 15

Fiduciary Funds Anaheim, California Fiduciarv Funds

CITY OF ANAHEIM Combining Statement of Fiduciary Net Position Custodial Funds - Others Year Ended June 30, 2022 (In thousands)

Custodial Funds - Others Community Unclaimed Facility Money Districts Seized Miscellaneous Total ASSETS Cash and cash equivalents $ 3,311 $ 45 $ 3,356 Investments 3,479 3,479 Special assessment receivable 9 9 Total assets 6,799 45 6,844 LIABILITIES Accounts payable 6 6 Total liabilities 6 6 NET POSITION Restricted for individuals, organizations, and other governments 6,793 45 6,838 Total net position $ 6,793 $ 45 $ 6,838

======= ===== ========

See accompanied independent auditors' report 15

CITY OF ANAHEIM Combining Statement of Changes in Fiduciary Net Position Custodial Funds - Others Year Ended June 30, 2022 (In thousands)

Custodial - Others Community Facility Unclaimed Bail Bond Districts Money Seized Deposits Miscellaneous Total ADDITIONS Special assessment collections from Community Facility Districts $ 3,218 $ 3,218 Deposits $ 18 $ 76 94 Donation collections $ 2 2 Miscellaneous receipts on behalf of inmates 3 3 Interest and investment income 10 10 Total additions 3,228 18 76 5 3,327 DEDUCTIONS Debt service payments for Community Facility Districts 3,023 3,023 Payments 1,534 103 76 1,713 Payments - Charity distributions 19 19 Administration 63 63 Total deductions 4,620 103 76 19 4,818 Change in net position (1,392) (85) (14) (1,491)

Net position at beginning of year, as adjusted 8,185 85 59 8,329 Net position at end of year $ 6,793 $ 45 $ 6,838 See accompanied independent auditors' report 16

Statistical Section Anaheim, California Statistical Section

Statistical Section The STATISTICAL SECTION is included to provide detailed data on the physical, economic, social and political characteristics of the reporting government. It is intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is possible from the basic financial statements and supplementary information included in the Financial Section.

CITY OF ANAHEIM STATISTICAL INFORMATION

{Unaudited)

The Statistical Section is included to provide financial statement users with additional historical perspective, context, and detail for them to use in evaluating the information contained within the financial statements, notes to the financial statements, and required supplementary information with the goal of providing the user a better understanding of the City1 s economic condition.

Page Contents Financial trends These schedules contain information to help the reader understand how the City's financial performance and well-being have changed over time. 164 Net Position by Component - Last Ten Fiscal Years 164 Changes in Net Position - Last Ten Fiscal Years 165 Governmental Activities Tax Revenues by Source - Last Ten Fiscal Years 167 Fund Balances of Governmental Funds - Last Ten Fiscal Years 168 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 169 Revenue capacity These schedules contain information to help the reader assess the City's most significant local revenue sources. 170 General Government Tax Revenues by Source - Last Ten Fiscal Years *170 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 171 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 172 Principal Property Tax Payers - Current Year and Nine Years Ago 173 Property Tax Levies and Collections - Last Ten Fiscal Years 174 Debt capacity These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the 175 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 17S Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 176 Direct *and Overlapping Governmental Activities Debt - As of June 30, 2022 177 Legal Debt Margin - Last Ten Fiscal Years 178 Pledged-Revenue Coverage - Last Ten Fiscal Years 179 Demographic and economic information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 181 Demographic and Economic Statistics - Last Ten Fiscal Years 181 Principal Employers - Current Year and Nine Years Ago 182 Operating information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and 183 Full-Time Equivalent City government Employees by Function/ Program - Last Ten Fiscal Years 183 Operating Indicators by Function - Last Ten Fiscal Years 184 Capital Assets Statistics by Function - Last Ten Fiscal Years 186 Sources: Unless otherwise noted. the information in these schedules is derived from the annual comorehensive financial reoorts for the relevant vear. 16

CITY OF ANAHEIM Net Position by Component Last Ten Fiscal Years {In thousands)

(Accrual basis of accounting)

Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Oovernmental Activities Net investment in capital assets $ 1,147,895 $ 1,138,182 $ 1,112,914 $ 1,040,595 $ 1,008,489 $ 974,071 $ 968,473 $ 894,651 $ 1,016,259 $ 894,625 Restricted 277,443 260,160 251,942 266,447 266,983 274,830 211,338 210,934 205,998 196,853 Unrestricted 1 2 3 (553,852) (720,573) (629,091) (554,529) (551,607) (557,245) (417,976) (447,817) (455,863) 30,341 Total Governmental Activities 871,486 677,769 735,765 752,513 723,865 691,656 761,835 657,768 766,394 1,121,819 Business-type Activities Net investment in capital assets 1,091,868 1,074,102 1,074,006 1,058,213 1,009,302 1,016,113 997,292 993,075 823,505 787,459 Restricted 81,344 70,372 66,069 61,808 86,863 83,811 76,749 83,448 77,311 71,131 Unrestricted 1 2 74,944 35,842 22,284 51,630 15,661 (26,767) 36,644 (1,725) (37,696) 121,083 Total Business-type Activities 1,248,156 1,180,316 1,162,359 1,171,651 1,111,826 1,073,157 1,110,685 1,074,798 863,120 979,673 Total Oovernment Net investment in capital assets 2,239,763 2,212,284 2,186,920 2,098,808 2,017,791 1,990,184 1,965,765 1,887,726 1,839,764 1,682,084 Restricted 358,787 330,532 318,011 355,181 353,846 358,641 288,087 294,382 283,309 267,984 Unrestricted (478,908) (684,731) (606,807) (529,825) (535,946) (584,012) (381,332) (449,542) (493,559) 151,424 Total Government $ 2,119,642 $ 1,858,085 $ 1,898,124 $ 1,924,164 $ 1,835,691 $ 1,764,813 $ 1,872,520 $ 1,732,566 $ 1,629,514 $ 2,101,492 Note: l The City implemented Governmental Accounting Standards Board (GASB) Statement No. 68 Accounting and Financial Reporting for Pension, and Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date, for the fiscal year ended June 30, 2015. Implementation of these Statements required the City to restate prior period net position and are reflected in the fiscal year 2014 Unrestricted net position. Information prior to the implementation of these Statements is not available.

2 The City implemented Governmental Accounting Standards Board (GASB) Statement No. 75 Accounting and Financial Reporting for Other Postemployment Benefits Other Than Pension for the fiscal year ended June 30, 2018. Implementation of this Statements required the City to restate prior period net positions and are reflected in the fiscal year 2017 Unrestricted net position. Information prior to the implementation of these Statements is not available.

3 The City implemented Governmental Accounting Standards Board (GASB) Statement No. 87 Accounting for Leases for the fiscal year ended June 30, 2022. Implementation of this Statements required the City to restate prior period net position and are reflected in the fiscal year 2021 Net Investment in capital assets and Unrestricted net position. Information prior to the implementation of these Statements is not available.

Certain reclassifications have been made to prior year data to conform to the current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16

CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (In thousands)

(Accrual basis of accounting)

Fisca Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Program Revenues Governmental activities:

Charges for services General government $ 1,477 $ 2,115 $ 1,796 $ 1,742 $ 1,749 $ 1,903 $ 2,034 $ 2,398 $ 1,779 $ 2,001 Police 13,279 9,040 13,595 15,901 15,361 15,441 11,775 10,001 9,927 9,859 Fire & Rescue 23,338 18,819 21,024 10,949 11,621 10,582 9,814 9,024 10,166 9,912 Housing & Community Development 2 13,033 14,625 6,796 5,441 5,438 17,171 9,295 13,796 17,144 9,002 Economic Development 2 2,867 3,003 3,110 2,090 1,983 1,875 915 227 161 149 Planning & Building 11,198 12,178 11,059 11,715 16,573 11,357 11,515 9,800 7,746 6,404 Public.Works 20,846 17,422 20,123 21,075 17,378 16,140 15,817 13,309 13,037 14,012 Community Services 3,153 1,573 2,491 3,174 3,227 11,190 3,430 3,408 3,479 3,556 Convention, Sports & Entertainment 16 560 2195 11075 14802 14 231 13 672 12 528 11124 10236 9 574 Total charges for services 105,751 80,970 91,069 86,889 87,561 99,331 77,123 73,087 73,675 64,469 Operating grants and contributions 247,271 226,525 158,750 130,335 115,520 109,989 108,131 109,968 114,584 112,507 Capital grants and contributions 30 090 36 376 43191 21335 39340 65 937 85782 67 014 110 295 71472 Governmental activities program revenues 383112 343 871 293 010 238 559 242 421 275 257 271 036 250 069 298 554 248448 Business-type activities:

Charges for services Electric Utility 448,286 433,734 417,912 459,182 443,755 433,561 430,485 453,697 426,051 451,958 Water Utility 102,239 96,351 84,943 79,649 79,074 70,777 60,509 63,495 65,946 60,785 Sanitation Utility 74,574 69,482 70,812 68,036 65,138 63,893 61,006 60,076 57,843 57,230 Golf Courses 10,709 6,978 4,282 4,306 4,273 4,062 4,114 4,435 4,667 4,759 Convention, Sports & Entertainment 32,253 4,371 35,909 51,072 44,984 37,015 35,363 34,742 32,084 29,656 ARTIC Management 39 41 1030 1343 1050 878 448 Total charges for services 668,061 610,955 613,899 663,275 638,567 610,358 592,355 616,893 586,591 604,388 Operating grants and contributions 603 88 143 231 88 425 776 287 452 952 Capital grants and contributions 31363 9751 12 339 28408 8353 4 381 11743 8734 8441 6698 Business-type activities program revenues 200022 620294 626 381 691 914 642008 615164 604 824 6;25 914 595484 612 038 Total government program revenues 1083 13!;! 964665 919 391 930 473 889 429 890 421 875 910 875 983 894038 860 486 Expenses Governmental activities:

General government 20,418 25,415 31,866 22,005 15,645 11,825 10,331 12,370 15,790 13,275 Police 147,972 182,509 202,064 175,409 173,921 151,559 132,889 135,161 127,037 124,556 Fire & Rescue 79,516 103,696 96,803 82,948 81,528 70,365 62,520 61,794 59,510 58,508 Housing & Community Development 2 149,709 122,411 104,153 87,443 90,475 95,472 90,081 79,492 78,789 80,923 Economic Development 2 3,806 5,928 6,659 11,375 5,592 5,248 20,537 1,484 1,254 1,846 Planning & Building 22,419 25,695 27,929 26,248 25,376 21,944 19,862 18,303 17,030 16,917 Public Works 56,366 60,664 60,693 53,742 55,981 61,806 48,719 66,023 60,262 44,740 Community Services 38,547 39,721 50,513 43,218 39,020 34,799 34,212 31,587 34,130 28,925 Public Utilities 2,075 2,171 2,381 2,476 2,346 2,530 2,687 2,599 2,514 2,405 Convention, Sports & Entertainment 23,879 8,071 17,713 27,663 19,930 19,238 18,503 17,026 15,586 13,935 Interest on long-term debt 33093 31527 29734 35149 34938 34876 35185 35340 35 514 35 880 Governmental Activities Expenses 577 800 607 808 630 508 567 676 544 752 509 662 475 526 461179 447 416 421910 (Continued) 16

CITY OF ANAHEIM Changes in Net Position Last Ten Fiscal Years (In thousands)

(Accrual basis of accountin9} (continued}

Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Expenses Business-type Activities:

Electric Utility 389,898 378,087 404,272 425,072 394,574 412,424 390,732 401,243 411,246 417,008 Water Utility 95,407 96,920 88,554 76,484 75,755 72,715 61,620 68,011 62,996 57,056 Sanitation Utility 64,186 66,022 67,375 64,659 61,145 58,218 56,564 55,979 53,508 52,813 Golf Courses 8,432 6,046 5,017 4,954 4,898 4,465 4,405 4,418 4,399 4,473 Convention, Sports & Entertainment Venues 51,776 51,239 75,621 68,187 66,058 47,321 44,285 56,715 46,385 45,001 ARTIC Management 2 525 2548 2949 6548 6 218 6374 6235 5075 Business-type activities expense 612,224 600,862 643 788 645904 608 648 601517 563 841 591441 578 534 576 351 Total government expenses 1,190,024 1,208,670 1,274,296 1,213,580 1,153,400 1,111,179 1,039,367 1,052,620 1,025,950 998 261 Net {Expense)/Revenue Governmental activities (194,688) (263,937) (337,498) (329,117) (302,331) (234,405) (204,490) (211,110) (148,862) (173,462)

Business-type activities 87 803 19932 {17,407) 46010 38360 13647 41033 34473 16950 35687 Total government, net (expense) revenue {106,885) {244,005) {354,905) {283,107) {263,971) {220,758) {163,457) {176,637) {131,912) {137,775)

General Revenues and Other Changes in Net Position Governmental activities:

Taxes:

Property taxes 94,554 90,222 86,256 80,822 76,547 72,909 70,646 68,405 66,282 64,311 Sales and use taxes 1 103,374 76,811 76,851 84,982 80,732 77,732 76,975 72,356 67,505 65,445 Transient occupancy taxes 1 177,057 29,797 122,735 161,948 154,925 149,566 137,570 119,744 110,134 102,936 Other taxes 9,592 8,902 8,796 8,893 9,076 8,946 8,731 8,318 7,780 7,756 Gain on sale on capital assets 6,258 Unrestricted investment earnings (9,228) 1,470 15,371 15,654 2,783 2,116 3,692 2,725 2,930 1,094 Other 762 100 98 105 106 87 55 49 Lease Revenues 1,857 Transfers 13,056 4,270 10,641 5,368 4,114 7,701 10,856 (169,119) 7,288 12,824 Special item {8,218)

Governmental activities 388405 212 234 320 750 357 765 334 540 310,858 308 557 102 484 261968 256,223 Business-type activities:

Unrestricted investment earnings (losses) (6,907) 2,295 18,756 19,183 4,423 4,001 5,710 8,086 6,986 3,323 Transfers {13,056) {4,270) {10,641) {5,368) {4,114) {7,701) {10,856) 169 119 {7,288) {12,824)

Business-type activities {19,963) {1,975} 8115 13 815 309 {3,700) {5,146) 177 205 {302) {9 501}

Total government 368442 210,259 328865 371580 334849 307 158 303 411 279 689 261666 246 722 Change in Net Position Governmental activities 193,717 (51,703) (16,748) 28,648 32,209 76,453 104,067 (108,626) 113,106 82,761 Business-type activities 67840 17 957 {9,292} 59825 38 669 9947 35887 211,678 16648 26186 Total government change in net position 1 261,557 $ (33,746) 1 {26,040) 1 88,473 $ 70,878 1 86,400 i 139,954 $ 103,052 $ 129,754 $ 108,947 1

Decreases in Sales and use taxes, and Transient Occupancy taxes in Fiscal Years 2020 and 2021 are due to impacts of COVID-19 Pandemic and California Stay-At-Home Order.

2 The previously Community & Economic development was re-organized to Housing & Community Development and Economic Department in fiscal year 2022.

Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16

CITY OF ANAHEIM Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (In thousands)

(Accrual basis of accounting)

Amounts Sales and Transient Fiscal Property Use Occupancy Other Year Taxes Taxes Taxes Taxes Total 2022 $ 94,554 $ 103,374 $ 177,057 $ 9,592 $ 384,577 2021 90,222 76,811 29,797 8,902 205,732 2020 86,256 76,851 122,735 8,796 294,638 2019 80,822 84,982 161,948 8,893 336,645 2018 76,547 80,732 154,925 9,076 321,280 2017 72,909 77,732 149,566 8,946 309,153 2016 70,646 76,975 137,570 8,731 293,922 2015 68,405 72,356 119,744 8,318 268,823 2014 66,282 67,505 110,134 7,780 251,701 2013 64,311 65,445 102,936 7,756 240,448 Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16

CITY OF ANAHEIM Fund Balances of Governmental Funds Last Ten Fiscal Years (In thousands)

(Modified accrual basis of accounting)

Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Cieneral Fund Nonspendable $ 601 $ 402 $ 308 $ 756 $ 519 $ 819 $ 958 $ 1,538 $ 2,099 $ 2,531 Restricted 10,030 13,538 12,547 4,627 5,194 6,238 7,730 6,124 6,449 1,766 Committed 2,250 788 1 114,039 104,212 6,752 15,221 11,008 2,056 7,442 513 4,073 6,879 Assigned Unassigned 52,351 17,975 10,954 43,455 41,556 42,336 39,850 39,615 30,394 26,920 Total General fund 177.021 136,127 32,811 64059 58 277 51449 55,980 47790 43 015 38,884 Housing Authority Fund Nonspendable 42 41 39 36 34 2 4 7 38 Restricted 44,143 51,320 48,285 61,641 60,180 62,338 48,974 43,703 41,134 32,234 Assigned 41,475 35,840 31,579 28,434 26,574 22,904 16,129 14,283 11,664 11,823 Total Housing Authority Fund 85,660 87,201 79903 90,111 86788 85.242 65.105 57990 52.805 44095 Nonmajor Ciovernmental Funds Nonspendable 186 155 252 11,503 9,091 8.713 6,000 6,270 3,542 4,619 Restricted 2 305,078 254,607 276,604 319,412 320,034 303,036 237,930 197,360 170,950 164,870 Committed 3,943 4,057 4,039 3,812 4,063 Assigned 19,641 8,288 7,475 6,696 6,797 9,612 5,875 3,040 3,291 8,055 Unassigned (13,069) (13,146) (15,080) (9,217) (11,535) (12,202) (17,991) (20,071) (19,005) (11,231)

Total nonmajor governmental funds 315 779 253.961 273 290 332,206 328,450 309,159 231,814 186,599 158,778 166,313 Total governmental funds $ 578,460 $ 477,289 $ 386,004 $ 486,376 $ 473,515 $ 445,850 $ 352,899 $ 292,379 $ 254,598 $ 249,292 1 Increase in assigned fund balance in Fiscal Year 2021 is due to unspent bond proceeds from the 2021 APFA Lease Revenue Bonds (Working Capital Financing) issued in June 2021.

2 Decrease in restricted fund balance in Fiscal Year 2020 is due to $59 million used for the partially defeasance of the 1996 APFA Series C Capital Appreciation Bonds.

Note: Certain reclassifications have been made to prior fiscal years data to conform to the current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16

CITY OF ANAHEIM Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (In thousands)

(Modified accrual basis of accounting)

Fisca Year 2022 2021 202Q 2019 2018 2017 2016 2015 2014 2013 Revenues Property taxes $ 94,554 $ 90,222 $ 86,256 $ 80,822 $ 76,547 $ 72,909 $ 70,646 $ 68,405 $ 66,282 $ 64,311 Sales and use taxes 3 103,421 76,907 76,898 84,792 81,680 80,500 81,844 71,977 68,581 62,793 Transient occupancy taxes 3 177,057 30,180 122,351 161,948 154,925 149,566 137,570 119,744 110,134 102,936 Other taxes 8,689 8,139 8,024 8,175 8,311 8,287 8,024 7.478 7,012 7,078 Licenses, fees, and permits 26,460 29,451 26,627 24,397 38,258 30,365 24,851 23,893 16,653 17,835 Intergovernmental revenues 4 252,796 234,891 167,085 139,776 124,696 123,797 121,055 155,314 215,755 186,018 Charges for services 60,109 35,199 50,927 51,308 50,771 48,186 41,949 37,975 37,269 35,353 Fines, forfeits, and penalties 3,257 3,096 2,658 2,937 2,988 2,756 2,875 2,823 2,656 2,907 Use of money and property 2 12,770 31,798 29,323 37,459 26,801 47,505 67,204 20,068 22,427 12,141 Contribution from property owners 1 1,534 5,175 3,124 36,864 Lease revenues 1,195 Others 1379 2 029 1597 1086 1178 2127 1368 9738 809 4843 Total revenues 743 221 547 087 574870 592 700 566155 602 862 557 386 517 415 547 578 496 215 Expenditures General government 32,927 32,660 33,715 26,936 21,358 19,447 18,679 19,052 21,070 18,270 Police 169,922 161,633 170,308 160,355 156,338 148,801 139,775 127,226 120,962 117,702 Fire & Rescue 91,310 92,793 85,677 76,604 74,888 70,164 66,399 61,483 57,529 56,127 Housing & Community Development 159,591 120,165 105,386 92,699 88,263 86,841 87,007 87,962 82,404 84,436 Economic Development 7,625 5,928 6,659 11,375 5,592 5,248 20,537 1,484 1,254 1,846 Planning & Building 24,595 24,662 24,498 24,196 23,649 21,997 19,935 17,667 16,086 15,785 Public Works 36,681 39,606 37,022 32,329 34,331 30,886 30,388 29,814 29,737 25,387 Community Services 36,241 33,306 40,690 36,339 34,042 32,258 31,980 28,394 30,602 25,268 Public Utilities 2,121 2,187 2,397 2,448 2,341 2,496 2,727 2,622 2,510 2,398 Convention, Sports & Entertainment 16,871 2,484 11,774 15,575 14,639 14,023 13,089 11,608 10,714 10,002 Capital outlay 22,318 29,250 71,117 43,191 46,366 44,532 32,589 79,710 136,597 98,601 Debt service:

Principal 18,632 17,409 18,575 32,128 14,749 26,123 28,448 25,289 24,220 18,948 Interest charges 31700 29694 78065 30943 28 412 15 571 16930 18085 18 797 19808 Total expenditures 650 534 591 777 685883 565118 544968 518387 508483 510 396 552482 494 578 Revenues over (under) expenditures 92 687 (46 101} (111013} 5834 21187 84475 48903 6892 (4904} 1637 Other Financing Sources (Uses)

Transfers in 134,280 42,141 78,434 107,804 97,513 103,797 95,920 85,818 84,813 73,470 Transfers out (127,296) (44,309) (67,793) (102,556) (93,285) (101,446) (85,403) (79,373) (75,953) (59,393)

Premium on long term debt 35,279 1,790 Issuance of long-term debt 25,046 139,554 175,565 2,250 6,125 1,100 28,854 1,350 31,500 Payments to refunded bond escrow agent (23,348) (209,065) (6,200)

Bonds issuance costs (198) (1,411) (1,748) (127)

Total other financing sources 8484 135 975 10641 5279 6478 8476 11617 30 762 10210 45 577 Net change in fund balances $ 101171 $ 91285 $ (100372} $ 12,861 $ 27 665 $ 92 951 $ 60 520 $ 37,781 $ 5,306 $ 47 214 Debt service as a percentage of non-ca pita I expenditures 8.01% 8.35% 15.72% 11.60% 8.66% 8.80% 9.54% 10.07% 10.34% 9.79%

1 Contribution from property owners pursuant to the issuances of Community Facility District 08-1 Platinum Triangle Series 2010 (Fiscal Year 2011), and Series 2016 (Fiscal year 2017) Special Tax Bonds.

'Increase in Use of money and property in Fiscal Year 2016 is due to one-time land held for resale transferred from the Successor Agency 3 Decreases in Sales and Use Taxes and Transient Occupancy Taxes in Fiscal Years 2020 and 2021 are due to COVID-19 pandemic and California Stay-At-Home Order 4 Increases in Intergovernmental revenues in Fiscal years 2020, 2021 and 2022 are due to CARES and ARP fundings.

Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 16

CITY OF ANAHEIM General Government Tax Revenues By Source Last Ten Fiscal Years (In thousands)

(Modified accrual basis of accounting)

Amounts in Dollars Progert)l Taxes Property Transient Fiscal Secured Property Unsecured Supplemental Taxes Sales and Use Occupancy Vear Taxes Property Taxes Property Taxes Residual in-lieu of VLF z Taxes 13 Taxes 3 Other Taxes Total 2022 $ 48,113 $ 1,499 $ 1,107 $ 4,943 $ 38,892 $ 103,421 $ 177,057 $ 8,689 $ 383,721 2021 46,499 1,371 933 3,949 37,470 76,907 30,180 8,139 205,448 2020 44,285 1,378 920 3,850 35,823 76,898 122,351 8,024 293,529 2019 41,529 1,263 1,173 3,322 33,535 84,792 161,948 8,175 335,737 2018 39,396 1,265 .. 1,259 2,892 31,735 81,680 154,925 8,311 321,463 2017 37,771 1,214 1,108 2,484 30,332 80,500 149,566 8,287 311,262 2016 37,000 1,256 991 2,203 29,196 81,844 137,570 8,024 298,084 2015 35,624 1,358 1,001 2,262 28,160 71,977 119,744 7,478 267,604 2014 33,976 1,243 832 2,873 27,358 68,581 110,134 7,012 252,009 2013 33,114 1,194 806 2,834 26,363 62,793 102,936 7,078 237,118 1 Increase in sales and use taxes in Fiscal Year 2016 was due to the sales tax triple flip final distribution.

2 Collection of property taxes in-lieu of VLF starting in fiscal year 2005 is due to the shifting of revenue from motor vehicle license fees category to the property tax category. This was part of the State of California 2004 Budget Act.

3 Decreases in Sales and Use Taxes and Transient Occupancy Taxes in Fiscal Years 2020 and 2021 are due to impacts of COVID-19 and the California Stay-At-Home order.

Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 17

CITY OF ANAHEIM Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (In thousands)

(Modified Accrual Basis of Accounting)

Fiscal Year 2022 2021 2020 2019 2018 City of Anaheim Secured property $ 43,892,712 $ 42,491,830 $ 40,745,451 $ 38,098,867 $ 36,199,163 Unsecured property 1,679,279 1,315,829 1,273,871 1,302,121 1,175,627 Total City of Anaheim 45,571,991 43,807,659 42,019,322 39,400,988 37,374,790 Redevelopment Project Areas Secured property 6,565,882 6,333,408 5,938,225 5,593,018 5,182,683 Unsecured property 898,924 957,529 893,906 737,385 720,305 Total Anaheim Redevelopment Agency 7,464,806 7,290,937 6,832,131 6,330,403 5,902,988 Total Taxable Assessed Value $ 53,036,797 $ 51,098,596 $ 48,851.453 $ 45,731,391 $ 43,277,778 Total Direct Tax Rate 1.00000% 1.00000% 1.00000% 1.00000% 1.00000%

Fiscal Year 2017 2016 2015 2014 2013 City of Anaheim Secured property $ 34,732,460 $ 33,338,748 $ 32,023,757 $ 30,548,214 $ 29,608,967 Unsecured property 1,172,650 1,243,307 1,515,905 1,266.403 1,265,519 Total City of Anaheim 35,905,110 34,582,055 33,539,662 31,814,617 30,874.486 Redevelopment Agency Project Areas Secured property 4,773,715 4,479,386 4,102,931 3,916,169 4,338,935 Unsecured property 684 544 753,736 759,729 654,982 683,237 Total Anaheim Redevelopment Agency 5,458,259 5,233,122 4,862,660 4,571,151 5,022,172 Total Taxable Assessed Value $ 41,363,369 $ 39,815,177 $ 38,402,322 $ 36,385,768 $ 35,896,658 Total Direct Tax Rate 1.00000% 1.00000% 1.00000% 1.00000% 1.00000%

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

Source: Auditor-Controller, County of Orange; California Municipal Statistics, Inc.

See accompanied independent auditors' report 17

CITY OF ANAHEIM Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years (Rate per $100 assessed value)

Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Direct Rate Basic Levy1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Rates2 :

Anaheim General Obligation Bond Fund 0.00173 0.00198 0.00211 0.00227 Anaheim City School Districts 0.06321 0.06595 0.05943 0.05059 0.04502 0.04461 0.04227 0.02867 0.05848 0.05382 Anaheim Union High School Districts 0.03804 0.03971 0.03968 0.04244 0.02211 0.04259 0.04948 0.02412 0.02620 0.02858 North Orange County Community College 0.02877 0.03198 0.02409 0.02829 0.02927 0.02885 0.03043 0.01704 0.01704 0.01902 Water District Rate 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.13352 0.14114 0.12670 0.12482 0.0999 0.11955 0.12741 0.07531 0.10733 0.10719 Total Direct and Overlapping Rates 1.13352 1.14114 1.12670 1.12482 1.09990 1.11955 1.12741 1.07531 1.10733 1.10719 3

City's share of 1% Basic Levy per Prop 13 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 0.10851 1 In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides. In 1986, the State Constitution was amended to allow rates over the 1% base rate for voter approved general obligation debt. Valuations of real property are frozen at the value of the property in 1975, with an allowable adjustment up to 2% per year for inflation. However, property is assessed to its current value when a change of ownership occurs. New construction, including tenant improvements, is assessed at its current value.

2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

3 City's share ofl% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City.

Source: Auditor Controller, Orange County See accompanied independent auditors' report 17

CITY OF ANAHEIM Principal Property Tax Payers Current Vear and Nine Years Ago (In thousands)

Fiscal ear 2022 2013 Percentage Percentage of Total Taxable of Total Taxable Assessed Assessed Assessed Assessed Tax Payer Rank Value Value Rank Value Value Walt Disney World Company 1 10.88% $ 5,488,729 1 12.28% $ 4,170,132 HHC HA Investment II Inc. 2 0.44% 222,575 Anaheim Concourse ILP LLC 3 0.40% 201,808 C3J LP 4 0.39% 194,728 Jefferson at Stadium Park 5 0.34% 173,390 US REIF MG Madison Park CA LLC 6 0.27% 135,460 Mary Susan Samia Trust 7 0.25% 126,895 Irvine Company LLC 8 0.25% 124,983 2 0.45% 152,654 Advance Group 18-116 9 0.23% 117,312 CH Realty VIII - Redhill MF 10 0.22% 111,261 Makar Anaheim LLC 3 0.39% 133,282 Reef America REIT II 4 0.33% 133,127 Kilroy Realty LP 5 0.33% 111,419 La Palma/Miller Owner LLC 6 0.29% 98,611 PPC Anaheim Apartments 7 0.27% 92,491 Angeli LLC 8 0.26% 86,806 Lennar Platinum Triangle 9 0.22% 75,000 BRE Properties Inc. 10 0.22% 73,042 Total 13.67% $ 6,897,141 15.04% $ 5,126,564 Source: Finance Department, City of Anaheim, California Municipal Statistics, Inc.

See accompanied independent auditors' report 17

CITY OF ANAHEIM Property Tax Levies and Collections Last Ten Fiscal Years (In thousands)

Collected within the Total Fiscal Year of the Lew Collections to Date Collections Total in Fiscal Taxes Percentage Subsequent Percentage Year Amount 1 Lew of Lew Years Amount of Lew 2022 $ 51,577 $ 50,270 97.47% $ 237 $ 50,507 97.93%

2021 49,162 48,306 98.26% 450 48,814 99.29%

2020 47,082 46,223 98.18% 497 46,720 99.23%

2019 44,588 43,630 97.85% 360 43,990 98.66%

2018 42,432 41,578 97.99% 336 41,914 98.78%

2017 40,787 39,710 97.36% 342 40,052 98.20%

2016 40,026 38,832 97.02% 382 39,214 97.97%

2015 38,365 37,456 97.63% 414 37,870 98.71%

2014 36,293 35,558 97.97% 460 36,018 99.24%

2013 34,813 34,116 98.00% 384 34,500 99.10%

1 Excludes property taxes in-lieu of vehicle license fees Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.

Source: Auditor-Controller, County of Orange See accompanied independent auditors' report 17

CITY OF ANAHEIM Ra'tios of Outstanding Debt by Type Last Ten Fiscal Years (In thousands, except per capita amount)

Fiscal Year 2022 2021 2020 2019 2018 Governmental Activities Bonds $ 666,167 $ 684,157 $ 562,005 $ 600,444 $ 621,675 Notes and loans 21,473 16,466 19,681 23,796 28,008 Leases 4,375 4828 2297 1988 1550 Total governmental activities 692,015 705 451 583,983 626,228 651,233 Business-Type Activities Bonds 1,304,522 1,173,008 1,220,797 1,172,354 1,214,339 Notes and loans 2,402 6,366 9,866 13,418 16,972 Leases 2,997 3 337 198 Total business-type activities 1,309,921 1,182,711 1,230,861 1,185,772 1,231,311 Total Government $ 2,001,936 $ 1,888,162 $ 1,814,844 $ 1,812,000 $ 1,882,544 Percentage of Personal Income 17.87% 16.69% 16.87% 16.20% 18.06%

Per Capita $ 5,867 $ 5,479 $ 5,083 $ 5,080 $ 5,272 Fiscal Year 2017 2016 2015 2014 2013 Governmental Activities Bonds $ 627,589 $ 632,321 $ 640,891 $ 614,757 $ 616,086 Certificates of participation 8,880 10,020 Notes and loans 29,577 20,820 21,372 50,757 54,877 Capital leases 1738 2088 2346 1325 1369 Total governmental activities 658 904 655,229 664609 675 719 682,352 Business-Type Activities Bonds 1,235,400 1,124,159 1,116,443 780,553 863,987 Certificates of participation 38,000 38,000 Notes and loans 20,523 36,200 57399 48271 62,722 Total business-type activities 1,255,923 1,160,359 1,173,842 866,824 964 709 Total Government $ 1,914,827 $ 1,815,588 $ 1,838,451 $ 1,542,543 $ 1,647,061 Percentage of Personal Income 20.12% 20.18% 21.26% 17.22% 19.74%

Per Capita $ 5,341 $ 5,070 $ 5,231 $ 4,429 $ 4,758 Note: Per capita income for 2022 is unavailable. Estimate the Per Capita for fiscal 2022 is estimated by using the 2021 Per Capita Income.

Certain reclassifications have been made to prior year data to conform to the current presentation Sources: California Department of Finance, Demographic Research Unit, E-1 City/County Population Estimates with Annual Percent Change; and Finance Department, City of Anaheim US Census Yearly American Community Survey See accompanied independent auditors' report 17

CITY OF ANAHEIM Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (In thousands, except per capita amount)

Fiscal Year 2022 2021 2020 2019 2018 Bonds Lease Revenue 1 $ 666,167 $ 684,157 $ 562,005 $ 600,444 $ 621,675 Less amount available for principal Total net obligation bonds outstanding $ 666,167 $ 684,157 $ 562,005 $ 600,444 $ 621,675 Percentage of Assessed Value of Property 1.26% 1.34% 1.15% 1.31% 1.44%

Per capita $ 1,952 $ 1,985 $ 1,574 $ 1,683 $ 1,741 Fiscal Year 2017 2016 2015 2014 2013 Bonds General Obligation $ 700 $ 1,360 $ 1,995 $ 2,605 Lease Revenue 1 $ 627,589 631,621 639,531 612,762 613,481 Tax Allocation 627,589 632,321 640,891 614,757 616,086 Less amount available for principal 700 813 725 703 Total net obligation bonds outstanding $ 627,589 $ 631,621 $ 640,078 $ 614,032 $ 615,383 Percentage of Assessed Value of Property 1.52% 1.59% 1.67% 1.69% 1.71%

Per capita $ 1,750 $ 1,764 $ 1,821 $ 1,763 $ 1,778 Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements 1 lncludeAccretion on revenue bonds Certain reclassifications have been made to prior year data to conform to current presentation.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 17

CITY OF ANAHEIM Direct and Overlapping Governmental Activities Debt As of June 30, 2022 (In thousands) 2021-22 Assessed Valuation $ 53,036,796 Debt Estimated Outstanding City's Share of lune 30, 2022  % A1111lica!2le 1 Overfa1111ing Debt DIRECT DEBT:

City of Anaheim 2 Lease Revenue Bonds $ 666,167 100% $ 666,167 Notes and Loans from direct placements 21,473 100 21,473 Leases 4375 100 4;;!75 TOTAL CITY OF ANAHEIM DIRECT DEBT 2 $ 692 015 $ 692 015 OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District $ 20,175 1.562% $ 315 North Orange Joint Community College District 209,339 28.139 58,906 Rancho Santiago Community College District 196,773 11.964 23,542 Rancho Santiago Community College District School Facilities Improvement District Nol 154,720 0.363 562 Anaheim Union High School District 256,269 68.371 175,214 Fullerton Joint Union High School District 187,410 0.244 457 Garden Grove Unified School District 532,420 0.553 2,944 Orange Unified School District 277,865 25.367 70,486 Placentia - Yorba Linda Unified School District 228,564 19.456 44,469 Anaheim School District 253,610 99.223 251,639 Magnolia School District 19,498 64.781 12,631 Other School Districts 147,487 Various 23,931 City of Anaheim Community Facilities Districts 52,705 100 52,705 California Statewide Community Community Development Authority Assessment Districts 1155 100 1155 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 2 537 990 718 956 OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations $ 375,780 7.782% 29,321 Orange County Pension Obligation Bonds 521,784 7.782 40,605 Orange County Board of Education Certificates of Participation 11,620 7.782 904 North Orange County Regional Occupation Program Certificates of Participation 8,200 28.974 2,376 Orange Unified School District Certificates of Participation 17,195 25.367 4,362 Orange Unified School District Benefit Obligations 60,835 25.367 15,432 Placentia-Yorba Linda Unified School District Certificates of Participation 87,930 19.456 17,108 Anaheim Union High School District Certificates of Participation 30,670 68.371 20,969 Fullerton Joint Union High School District Certificates of Participation 16,535 0.244 40 Fullerton School District General Fund Obligations 3,265 0.172 6 Magnolia School District General Fund Obligations 13 010 64.781 8428 TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 1,146824 139 551 OVERLAPPING TAX INCREMENT DEBT (Successor A9ency):

City of Anaheim Tax Allocation Bonds $ 125,950 .080-100% 125 161 TOTAL OVERLAPPING TAX INCREMENT DEBT 125 161 TOTAL GROSS OVERLAPPING DEBT 983,668 TOTAL NET OVERLAPPING DEBT 983668 TOTAL DIRECT AND OVERLAPPING DEBT $ 1675 683 1 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

2 Includes all long-term debt instruments of the governmental activities, including bonds, notes, loans, and leases.

Source: California Municipal Statistics, Inc., City of Anaheim See accompanied independent auditors' report 17

CITY OF ANAHEIM Legal Debt Margin Last Ten Fiscal Years (In thousands)

Fiscal Year 2022 2021 2020 2019 2018 Debt limit $ 1,988,880 $ 1,916,197 $ 1,831,929 $ 1,714,927 $ 1,622,917 Total net debt applicable to limit Legal debt margin $ 1,988,880 $ 1,916,197 $ 1,831,929 $ 1,714,927 $ 1,622,917 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00%

Legal Debt Margin Assessed value $ 53,036,796 $ 51,098,596 $ 48,851,453 $ 45,731,391 $ 43,277,778 Debt limit (3.75% of total assessed value)1 $ 1,988,880 $ 1,916,197 $ 1,831,929 $ 1,714,927 $ 1,622,917 Fiscal Year 2017 2016 2015 2014 2013 Debt limit $ 1,551,126 $ 1,493,069 $ 1,440,087 $ 1,364,466 $ 1,346,125 Total net debt applicable to limit {700) (1,360) (1.995) {2,605)

Legal debt margin $ 1,551,126 $ 1,492,369 $ 1,438,727 $ 1,362,471 $ 1,343,520 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.05% 0.09% 0.15% 0.19%

Legal Debt Margin Assessed value $ 41,363,369 $ 39,815,177 $ 38,402,322 $ 36,385,768 $ 35,896,658 Debt limit (3.75% of total assessed value)1 $ 1,551,126 $ 1,493,069 $ 1,440,087 $ 1,364,466 $ 1,346,125 Note:

1 California Government Code sets the debt limit at 15%. The Code section was enacted when assessed valuation were based on 25% of full market value. This has since changed to 100% of full market value. Thus the limit shown is 3.75% (one-fourth the limit of 15%).

By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Note: Certain reclassifications have been made to prior fiscal years' data to conform to the current presentation.

Source: Finance Department, City of Anaheim, California Municipal Statistics, Inc.

See accompanied independent auditors' report 17

CITY OF ANAHEIM Pledged-Revenue Coverage Last Ten Fiscal Years (In thousands)

Electric Utility Revenue Bonds Less Net Fiscal Electric Operating Available Debt Service Year Revenue Expenses 1 Revenue Principal Interest Total Coverage 2022 $ 445,184 $ 322,786 $ 122,398 $ 33,065 $ 27,775 $ 60,840 2.0118 2021 435,231 314,374 120,857 29,010 29,755 58,765 2.0566 2020 426,746 339,624 87,122 25,005 26,145 51,150 1.7033 2019 469,076 365,983 103,093 20,975 30,386 51,361 2.0072 2018 446,156 330,376 115,780 21,305 30,613 51,918 2.2301 2017 435,805 338,888 96,917 18,950 28,948 47,898 2.0234 2016 433,744 319,169 114,575 14,040 27,995 42,035 2.7257 2015 458,211 341,206 117,005 12,950 27,878 40,828 2.8658 2014 430,782 347,290 83,492 11,590 30,039 41,629 2.0056 2013 453,949 349,835 104,114 18,995 33,335 52,330 1.9896 1 Operating expenses include transfer for right of way and exclude amortization and depreciation.

(continued) 17

CITY OF ANAHEIM Pledged-Revenue Coverage Last Ten Fiscal Years (In thousands) (continued)

Water Utili:t)l Revenue Bonds Less Net Fiscal Water Operating Available Debt Service Year Revenue Exgenses 1 Revenue Princigal Interest Total Coverage 2022 $101,191 $74,755 $26,436 $5,375 $8,100 $13,475 1.9619 2021 97,096 78,210 18,886 4,970 8,511 13,481 1.4009 2020 88,549 69,479 19,070 3,640 7,242 10,882 1.7524 2019 83,079 59,273 23,806 3,490 7,519 11,009 2.1624 2018 80,131 59,975 20,156 3,370 7,638 11,008 1.8310 2017 71,790 56,487 15,303 3,380 6,815 10,195 1.5010 2016 61,721 46,383 15,338 5,885 1,775 7,660 2.0023 2015 65,518 52,883 12,635 960 4,178 5,138 2.4591 2014 66,979 50,046 16,933 920 4,217 5,137 3.2963 2013 61,849 44,838 17,011 950 4,255 5,205 3.2682 1 Operating expenses include transfer for right of way and exclude amortization and depreciation.

Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

Source: Finance Department, City of Anaheim Sanitation Revenue Bonds Less Net Fiscal Wastewater Operating Available Debt Service Year Revenue 2 Exgenses 3 Revenue Princigal Interest Total Coverage 2022 $13,869 $7,042 $6,827 $1,295 $2,111 $3,406 2.0044 2021 14,669 7,047 7,622 1,230 2,173 3,403 2.2398 2020 17,044 8,012 9,032 1,170 2,231 3,401 2.6557 2019 16,740 7,767 8,973 1,080 2,323 3,403 2.6368 2018 13,963 6,779 7,184 1,095 1,902 2,997 2.3971 2017 13,771 6,252 7,519 1,045 1,954 2,999 2.5072 2016 13,291 5,733 7,558 1,005 1,994 2,999 2.5202 2015 13,373 6,103 7,270 955 2,042 2,997 2.4258 2014 12,572 5,594 6,978 920 2,079 2,999 2.3268 2013 12,106 5,477 6,629 880 2,118 2,998 2.2111 2

Amounts based on the notes to the basic financial statement, segment reporting 3

Operating expenses exclude amortization and depreciation.

Note: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

Source: Finance Department, City of Anaheim See accompanied independent auditors' report 18

CITY OF ANAHEIM Demographic and Economic Statistics Last Ten Fiscal Years Personal Per Orange Income Capita Education County Fiscal (thousands Personal Median Level in Years School Unemployment Year Population of dollars) Income 1 Age of Schooling Enrollment 2 Rate 2022 341,245 $11,202,050 32,827 37.2 12.2 53,135 2.90%

2021 344,604 11,312,316 32,827 37.2 12.2 53,135 6.00%

2020 357,059 10,755,331 30,122 35.2 12.2 51,110 9.00%

2019 356,669 11,187,993 31,368 35.2 12.2 51,110 2.80%

2018 357,084 10,422,568 29,188 34.4 12.2 59,580 3.00%

2017 358,546 9,515,094 26,538 34.3 12.2 58,761 3.50%

2016 358,136 8,998,883 25,127 34.1 12.2 58,972 4.10%

2015 351,433 8,649,469 24,612 33.6 12.2 58,435 4.50%

2014 348,305 8,955,966 25,713 34.2 12.2 58,366 5.60%

2013 346,161 8,344,211 24,105 33.8 12.2 59,703 6.70%

1 Per capita personal income for year 2022 data not readily available.

2 Public school district, Kindergarten to 12th grade Sources: California State Department of Finance State of California, Employment Development Department State Department of Commerce and Labor US Census Yearly American Community Survey See accompanied independent auditors' report 18

CITY OF ANAHEIM Principal Employers Current Vear and Nine Years Ago Fiscal Year 2022 2013 Percentage Percentage of Total City of Total City Employer Rank Emelo:tees Emelo:tment Rank Emelo:tees Emelo:tment Disneyland Resort 1 34,000 20.15% 1 23,512 14.00%

Kaiser Permanente 2 2,300 1.36% 2 6,040 3.60%

Northgate Gonzalez Supermarkets 3 1,000 0.59% 10 850 0.50%

L-3 Communications 4 950 0.56% 9 940 0.60%

Anaheim Regional Medical Center 5 879 0.52% 5 1300 0.80%

Hilton Anaheim 6 850 0.50% 3 1,572 0.90%

West Anaheim Medical Center 7 805 0.48%

Angels Baseball 8 800 0.47% 7 1,051 0.60%

St. Joseph Health 9 800 0.47%

Anaheim Marriott Hotel 10 425 0.25% 8 1,030 0.60%

CashCall Inc. Mortgage Division 4 1,400 0.80%

Republic Services 6 1,300 0.80%

Total 42,809 25.35% 38,995 23.20%

Source: Econovue,lnside Prospects Inc., Orange County Business Journal See accompanied independent auditors' report 18

CITY OF ANAHEIM Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function[Program City Council 9 9 9 9 9 9 6 7 7 7 City Administration 19 19 19 19 19 19 19 20 20 20 City Attorney 33 33 33 33 33 33 33 33 31 30 City Clerk 8 8 8 8 8 8 8 7 7 7 Human Resources 40 40 40 40 40 40 39 37 37 38 Finance 1 55 55 55 55 55 55 54 44 44 44 Police 617 591 591 590 590 576 569 561 549 536 Fire & Rescue 330 276 276 276 276 276 274 267 262 262 Housing & Community Development 70 73 73 73 73 73 73 71 68 78 Economic Development 7 Planning & Building 77 76 76 76 76 76 76 75 71 69 Public Works 236 236 236 236 236 236 235 237 236 234 Community Services 93 93 93 93 93 92 92 91 87 87 Public Utilities 352 352 352 352 352 352 352 354 353 352 Convention, Sports &

Entertainment 85 85 85 85 85 85 85 85 84 83 Total 2,031 1946 1946 1,945 1,945 1,930 1,915 1,889 1,856 1847 1

Increase in Fiscal Year 2016 is due to reorganization of the Citywide Geographic Information System (GIS) and Police Information System into Finance.

• Economic Development Department was created in FY 2021/22 and included the transfer of three positions from Housing & Community Development Source: City of Anaheim (continued) 18

CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 20,!,! 2021 2020 2019 2018 2017 2016 2015 2014 2013 Functian/Pragram Police Department Number of calls for service 202,134 192,471 193,998 192,422 200,934 200,695 208,710 195,305 186,042 186,461 Number of9ll calls received 164,859 138,985 148,895 163,445 146,770 150,555 155,371 158,447 145,813 182,856 Number of Part I Crimes per 100,000 population 4,798 3,008 2,719 2,731 2,925 2,917 3,279 2,950 2,883 3,326 Number of Arrest 8,057 10,491 10,576 12,575 11,865 11,010 11,604 11,405 11,846 11,617 Number of Field Reports processed by Records Bureau 36,745 34,268 35,971 39,373 45,402 41,208 41,655 39,191 38,362 39,066 Number of traffic collisions 4,454 3,399 4,276 4,378 4,757 4,817 5,179 4,833 4,686 4,414 Number of Hours of Volunteer service 11,099 4,018 11,435 18,380 19,270 21,132 21,647 22,885 24,124 23,470 Fire Department Fire responses 1,323 1,129 996 1,025 1,057 1,035 1,082 952 885 902 False alarm responses 1,266 1,184 2,432 2,038 1,803 1,903 1,848 3,910 1,735 1,424 Mutual aid responses 3,514 3,018 3,596 3,906 4,069 5,450 5,506 4,322 3,001 2,860 Medical responses 30,489 26,759 29,195 29,232 29,385 28,437 28,858 27,158 24,912 24,735 Hazardous condition responses 158 173 180 204 190 222 211 213 211 207 Public Works Centerline miles of arterial highway pavement improved 4.60 9.93 3.40 9.15 1.29 1.22 4.7 3.6 7.1 5.9 Square feet of deteriorated pavement replaced 3,739,337 4,000,210 2,746,130 3,389,786 2,960,600 4,017,828 2,487,188 2,101,231 4,345,480 4,029,806 Square feet of deteriorated pavement slurry sealed 84,295 708,860 2,017,000 3,003,023 4,704,400 5,519,982 1,941,187 7,253,633 4,422,148 2,850,939 Number of traffic intersections maintained 339 395 394 376 360 335 333 321 327 318 Number of traffic control hubs maintained 18 20 20 18 18 18 18 18 19 18 Square feet of deteriorated sidewalk replaced 127,323 244,043 93,243 194,674 162,774 102,305 232,922 153,531 96,399 77,590 Linear feet of damaged curb/gutter replaced 27,284 34,275 29,311 78,147 65,569 6,797 33,373 30,152 29,996 25,187 Square feet of medians/parkways maintained 6,301,655 6,301,655 6,297,655 6,297,655 6,101,098 6,063,299 6,063,299 5,721,764 5,644,799 5,644,818 Square feet of landscape maintained in the Anaheim Resort 1,674,600 1,656,500 1,656,500 1,656,500 1,605,958 1,554,886 1,554,886 1,542,442 1,542,442 1,430,486 Square feet of hardscape maintained in the Anaheim Resort 991,860 991,860 991,360 991,360 991,350 991,360 991,360 991,370 991,360 858,828 Number of vehicles maintained 868 887 887 1,059 1,050 1,036 1,025 1,097 1,144 1,106 Number of vehicles per mechanic 45 44 44 46 52 49 49 57 58 58 Square feet of interior space maintained 2,409,427 2,409,427 2,409,427 2,408,734 2,399,337 2,379,100 2,379,100 2,379,100 2,700,000 2,362,992 Square feet of exterior space maintained 37,746,100 37,746,100 37,746,100 37,746,100 37,698,184 37,662,184 37,662,184 37,662,184 37,655,278 37,645,278 Number of facility square feet (interior) per worker 120,471 120,471 120,471 120,437 126,281 125,215 1,459,000 1,459,000 150,000 139,000 Number of construction projects 1,411 1,072 708 590 180 80 120 100 165 120 Number of permit inspections 8,212 9,426 1,007 1,691 900 650 510 429 486 380 Parks Number of park acres maintained per full-time equivalent employee 78 78 78 77 77 77 77 76 75 75 Number of sports fields prepared 66 66 66 66 66 66 66 66 66 66 Cost per acre of parks maintained $ 10,663 $ 9,873 $ 9,585 $ 9,325 $ 9,497 $ 9,221 $ 8,952 $ 8,691 $ 8,438 $ 8,192 Cost per sports field maintained $ 5,805 $ 5,375 $ 5,219 $ 5,082 $ 4,934 $ 4,791 $ 4,655 $ 4,519 $ 4,387 $ 4,260 Golf Courses Cost per acre of golf course maintained $ 18,328 $ 15,176 $ 9,712 $ 10,906 $ 11,147 $ 10,434 $ 10,076 $ 9,455 $ 9,931 $ 9,595 Number of rounds played 169,037 145,025 94,746 105,952 102,498 102,542 102,234 110,855 117,652 118,879 Number of acres maintained 200 200 200 200 200 200 200 200 200 200 (Continued)

See accompanied independent auditors' report 18

CITY OF ANAHEIM Operating Indicators by Function Last Ten Fiscal Years (Continued)

Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function/Program City Libraries Hours open 11,310 9,992 14,668 16,965 17,065 16,023 15,461 16,929 16,820 16,243 Total circulation of materials, including eBooks 832,155 783,392 1,012,328 1,006,276 1,026,997 1,117,096 1,169,829 1,257,127 1,397,239 1,520,841 Patron assistance (reference, information, computer) 154,148 132,623 225,468 191,269 207,724 226,429 185,436 207,305 240,287 291,960 Patron visits 3,013,726 4,045,310 1,184,487 1,382,433 1,460,551 981,637 1,098,146 1,221,982 1,264,972 1,317,689 Library cardholders 269,532 260,441 254,093 297,256 233,312 230,951 217,661 201,194 186,891 158,396 Programs offered 2,495 1,570 3,585 4,449 4,770 4,507 3,900 3,800 3,397 3,097 Program attendance 96,403 367,901 196,521 141,504 144,660 142,098 125,609 117,226 111,380 102,728 Hours of public internet usage 36,885 16,289 89,344 136,671 151,709 144,364 150,712 184,851 209,953 237,340 Community Services Programs Number of youth program participants 52,284 52,284 152,791 165,264 197,228 181,697 183,967 177,746 126,429 136,345 Number of youth program participants in recreation classes 6,088 6,088 9,894 8,291 7,957 8,500 13,026 10,136 13,897 10,906 Number of adult program sports teams 112 112 343 537 588 679 725 750 791 841 Number of park ranger contacts 530,361 530,361 547,707 781,176 641,320 382,310 278,599 327,893 263,765 233,308 Public Utilities Department Electric Utility:

Number of meters 104,561 121,526 121,227 120,400 119,564 118,248 117,593 115,682 115,474 115,418 Megawatt-hours - sales 2,682,392 2,652,150 2,687,030 3,109,157 3,217,353 3,298,340 3,229,569 3,725,386 4,065,552 3,312,018 Megawatt-hours - purchased power 2,781,257 2,745,977 2,760,933 3,120,824 2,985,962 2,990,931 3,050,657 3,417,459 3,751,220 3,029,766 Megawatt-hours - owned generation 1 2 60,890 231,391 398,068 318,921 371,657 467,348 410,601 Water Utility:

Number of meters 64,698 64,592 64,421 64,188 64,001 63,489 63,775 63,145 63,002 62,917 Millions of gallons sold 17,968 17,733 17,861 17,760 19,308 17,422 16,607 19,804 20,743 20,464 Millions of gallons purchased from Metropolitan Water District 13,715 13,673 7,877 3,581 8,767 4,170 4,373 4,717 5,286 6,878 Millions of gallons pumped from water system wells 5,470 4,921 10,947 14,603 10,742 14,217 13,213 15,180 16,749 14,659 Anaheim Convention Center Number of events serviced 101 13 135 168 171 179 181 197 221 263 Number of attendees 641,000 377,000 916,000 1,083,000 960,000 925,000 954,000 986,000 1,020,000 1,070,000 Percentage of occupancy 42.00% 19.00% 46.00% 55.00% 68.00% 72.00% 59,0% 63,0% 63,0% 58,0%

1 The City sold its shares of SONGS and SJ ownserships Sources: Various City departments See accompanied independent auditors' report 18

CITY OF ANAHEIM Capital Assets Statistics by Function Last Ten Fiscal Years Fisca Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function/Program Police Department Police Facilities 9 9 9 10 10 10 10 10 10 10 Motorized Equipment 277 277 277 256 256 260 260 250 247 247 Police Helicopters 3 3 3 3 3 3 2 2 2 3 Shooting Range 1 1 1 1 1 1 1 1 1 1 Communication/Radio Tower 1 1 1 1 1 1 1 1 1 1 Fixed Wing 1 1 1 1 1 1 1 1 1 1 Fire Department Fire stations 11 11 11 11 11 11 11 11 11 11 Training center 1 1 1 1 1 1 1 1 1 1 Fire trucks, engines, and other vehicles 91 88 85 79 76 75 75 74 74 79 Public Works Streets (center lane miles} 584 584 584 584 584 585 584 584 578 578 Traffic signals 392 395 394 376 360 335 321 321 321 318 Sewers (miles} 578.43 578.43 578.43 578.43 578.43 578.17 578.13 577.60 575.52 575.52 Storm Drains (miles} 151.82 151.82 151.82 151.82 151.82 151.82 151.30 151.30 151.30 151.30 Parks Community parks 9 9 9 9 9 11 11 11 11 11 Mini parks 11 10 10 10 10 15 15 9 7 7 Neighborhood parks 23 23 23 23 23 23 23 21 21 21 Special use parks 3 3 3 3 3 8 8 7 7 7 Ciolf Courses 2 2 2 2 2 2 2 2 2 2 City Libraries Branch libraries 8 8 8 8 8 8 8 8 7 7 Bookmobiles 2 2 1 1 1 1 1 1 1 1 Museums/Historic properties 5 5 5 5 5 5 5 5 5 5 (Continued)

See accompanied independent auditors' report 18

CITY OF ANAHEIM Capital Assets Statistics by Function Last Ten Fiscal Years (continued)

Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Function/Program Public Utilities Department Electric Utility:

Transmission, 69 kV, circuit miles 89 89 88 90 90 88 87 86 87 86 Distribution, 12 kV and lower, circuit miles Overhead 389 391 393 401 402 408 414 420 426 428 Underground 769 764 742 709 708 693 680 666 662 656 Water Utility:

Active Wells 18 17 19 15 18 17 18 17 18 18 Reservoirs 13 13 13 13 14 14 14 14 14 14 Water Mains {miles) 757 757 758 754 753 753 753 753 753 753 Fire Hydrants 7,946 7,943 7,912 7,835 7,842 7,832 7,840 7,832 7,816 7,812 Anaheim Convention Center Square footage available , 1,370,000 1,370,000 1,370,000 1,370,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 1,130,000 Number of exhibit halls . 7 7 7 7 5 5 5 5 5 5 Source: Various City Departments See accompanied independent auditors' report 18

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Other Information Anaheim, California Other Information

CITY OF ANAHEIM Summary of Pension Liability Funding Progress (in thousands)

Unfunded Accrued Accrued June 30, 2021 Fair Value of Liability Liability Funded Annual Covered UAL as a% of Actuarial Valuation Date Assets (FVA) (AL) (UAL) Ratio Pa:r:roll Pa:r:roll Miscellaneous $ 1,308,881 $ 1,619,285 $ 310,404 80.8% $ 111,733 277.8%

Police Safety 742,705 943,632 200,927 78.7% 52,861 380.1%

Fire Safety 395,894 510,417 114,523 77.6% 26,393 433.9%

Total $ 2,447,480 $ 3,073,334 $ 625,854 79.6% $ 190,987 327.7%

Unfunded Accrued Accrued June 30, 2020 Fair Value of Liability Liability Funded Annual Covered UAL as a o/o of Actuarial Valuation Date Assets (FVA) (AL) (UAL) Ratio Pa:r:roll Pa:r:roll Miscellaneous $ 1,084,188 $ 1,543,927 $ 459,739 70.2% $ 124,700 368.7%

Police Safety 612,525 882,257 269,732 69.4% 53,243 506.6%

Fire Safety 330,503 485,339 154,836 68.1 o/o 26,055 594.3%

Total $ 2,027,216 $ 2,911,523 $ 884,307 69.6% $ 203,998 433.5%

Unfunded Accrued Accrued June 30, 2019 Fair Value of Liability Liability Funded Annual Covered UAL as a o/o of Actuarial Valuation Date Assets (FVA) (AL) (UAL) Ratio Pa:r:roll Pa:r:roll Miscellaneous $ 1,057,123 $ 1,502,706 $ 445,583 70.3% $ 124,366 358.3%

Police Safety 594,766 843,974 249,208 70.5% 51,581 483.1 o/o Fire Safety 326,062 471,152 145,090 69.2% 24,421 594.1 o/o Total $ 1,977,951 $ 2,817,832 $ 839,881 70.2% $ 200,368 419.2%

See accompanied i ndependent auditors ' report 19

CITY OF ANAHEIM Schedule of Funding Progress for Other Post-Employment Benefits (Amounts in Thousands)

Unfunded Fair Value of Accrued Accrued UAL as a %of Assets Liability Liability Funded Annual Covered- Covered-Actuarial Valuation Date (FVA) (AL) (UAL) Ratios Emeloyee Payroll Emeloyee Payroll June 30, 2021 $ 110,402 $ 231,781 $ 121,379 47.6% $ 203,733 59.6%

June 30, 2019 102,332 262,907 160,575 38.9% 209,656 76.6%

June 30, 2017 89,953 273,950 183,997 32.8% 203,473 90.4%

See accompanied independent auditors' report 19

CITY 0 F ANAHEIM Legend CITY HALL 200 S. ANAHEIM BLVD .

FIRE STATIONS

• • POLICE STATIONS LIBRARIES CITY FACILITIES

'1" HELIPORT PARKS

1. HANSEN PARK 13. SAGE PARK 25. LINCOLN PARK 37. OAK PARK 49. ENERGY FIELD 1300 S. Knott St. 1313 Lido Pl. 1440 E. Lincoln Ave. 6400 E. Nahl Ranch Rd. 1625 S. Ninth St.

2. REID PARK 14. STODDARD PARK 26. EDISON PARK 38. YORBA REGIONAL PARK 50. MAGNOLIA PARK 3100 W. Orange Ave. 901 S. Ninth St. 1145 Baxter St. 7600 E. La Palma Ave. 1515 Wright Cir.

3. SCHWEITZER PARK 15. MANZANITA PARK 27. BOYSEN PARK 39. OAK CANYON NATURE CENTER 51 . FRIENDSHIP PLAZA PARK 238 S. Bel Air St. 1260 Riviera St. 951 State College Blvd . 6700 Walnut Canyon Rd . 200 S. Anaheim Blvd.

4. MAXWELL PARK 16. LA PALMA PARK & STADIUM 28. JUAREZ PARK 40. SYCAMORE PARK 52. ANAHEIM COVES 2660 W. Ora nge Ave. 1151 La Palma Park Way 841 S. Sunkist St. 8268 Monte Vista Rd. 962 S. Rio Vista Sl

5. PETER MARSHALL PARK 17. PEARSON PARK 29. PIONEER PARK 41. CANYON RIM PARK 53. PAUL REVERE PARK 801 N. Magnolia Ave. 400 N. Harbor Blvd . 2565 E. Underhill Ave . 7305 E. Canyon Rim Rd. 160 Guinida Ln.

6. BROOKHURST COMMUNITY PARK 18. LITTLE PEOPLES PARK 30. RIO VISTA PARK 42. RONALD REAGAN PARK 54. MIRALOMA PARK 2271 W . Cresent Ave . 220W. El m St. 201 N. Park Vista St. 945 S.Weir Canyon Rd. 2600 E. Mi raloma Way

7. JOHN MARSHALL PARK 19. JULIANNA PARK 31 . OLIVE HILLS PARK 43. ROOSEVELT PARK 55. CIRCLE PARK 2066 Fal mouth Ave. 309 E. Juliana St. 4200 Nahl Ranch Rd. 8160 E.Bauer Rd. 924 S.Park Cir.

8. MODJESKA PARK 20. GEORGE WASHINGTON PARK 32. RIVERDALE PARK 44. ROSS PARK 56. CORAL TREE PARK 1331 S. Nutwood St. 250 E. Cypress St. 454 5 E. Riverdale Ave. 1280 W. Santa Ana St. 1711 S. Betmor Ln.

9. CLARA BARTON PARK 21 . COLONY SQUARE 33. PERAL TA CANYON PARK 45. COTTONWOOD PARK 57. ANAHEIM WETLANDS PARK 1926 Clearbrook Ln. 210 E. Li ncoln Ave . 115 N. Pinney Dr. 853 W. Cottonwood Ci r. 8500 E. La Palma Ave.

10. CHAPARRAL PARK 22. WALNUT GROVE PARK 34. PELANCONI PARK 46. DEER CANYON PARK 58. DELPHI PARK 1770 E. Broadway 905 S. Anaheim Blvd. 222 S. Avenida Margarita Mohler & Santa Ana Rd. 1211 N Magnolia Ave.

11. WILLOW PARK 23. CITRUS PARK 35. IMPERIAL PARK 47. FOUNDERS PARK 59. JACARANDA PARK 1625 W . Crone Ave. 104 S. Atchison St. 450 S. Imperia l Hwy. 400 N. West St. 1955 Jacaranda Way 12.PALM LANE PARK 24. PONDEROSA PARK 36. EUCALYPTUS PARK 48. COLONY PARK 60. ALOE GREEN 1595 Palais Rd. 2100 S. Hasler St. 100 N. Quintana Dr. 501 E. Water St. 1400 E. Park St.

Date: 10/12/2021 3754 19

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u Anaheim, California