HomeMy WebLinkAboutNB-2 - 25-623 - FY 24-25 ACFR - 3/17/2026City of Costa Mesa
Annual Comprehensive Financial Report
Fiscal Year Ended
JUNE 30, 2025
Attachment 1
CITY OF COSTA MESA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
PREPARED BY:
FINANCE DEPARTMENT
www.costamesaca.gov
TABLE OF CONTENTS
INTRODUCTORY SECTION: Page
Letter of Transmittal i
List of Principal Officials vii
Organizational Chart viii
GFOA Certificate of Achievement for Excellence in Financial Reporting ix
FINANCIAL SECTION:
Independent Auditor’s Report 1
Management’s Discussion and Analysis (Required Supplementary
Information) 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements:
Governmental Funds:
Balance Sheet 20
Reconciliation of the Balance Sheet to the Statement of
Net Position 23
Statement of Revenues, Expenditures and Changes in Fund
Balances 24
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities 27
Proprietary Funds:
Statement of Net Position 28
Statement of Revenues, Expenses, and Changes in Net Position 29
Statement of Cash Flows 30
Fiduciary Funds:
Statement of Fiduciary Net Position 31
Statement of Changes in Fiduciary Net Position 32
Notes to the Basic Financial Statements 33
Required Supplementary Information:
Miscellaneous Plan:
Schedule of Changes in the Net Pension Liability and Related Ratios 79
Schedule of Contributions 81
Police Safety Plan:
Schedule of Changes in the Net Pension Liability and Related Ratios 82
TABLE OF CONTENTS (CONTINUED)
Page
Schedule of Contributions 84
Fire Safety Plan:
Schedule of Proportionate Share of the Net Pension Liability 85
Schedule of Contributions 86
Police 1% Supplemental Retirement Plan:
Schedule of Changes in the Net Pension Liability and Related Ratios 87
Other Post-Employment Benefit Plan:
Schedule of Changes in OPEB Liability and Related Ratios 88
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 90
Government Grants Fund 92
Gas Tax Fund 93
American Rescue Plan Act Fund 94
Notes to Required Supplementary Information 95
Supplementary Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet 101
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances 106
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual:
Nonmajor Special Revenue Funds:
HOME Program Fund 111
Air Quality Improvement Fund 112
Community Development Fund 113
Supplemental Law Enforcement Services Fund 114
Rental Rehabilitation Fund 115
Narcotics Forfeiture Fund 116
Office of Traffic Safety Fund 117
Housing Authority Fund 118
Behavioral Health Fund 119
Senior Transportation Fund 120
Major and Nonmajor Capital Projects Funds:
Capital Improvements Fund 121
Measure M2 Fund 122
Parking Districts Fund 123
Golf Course Improvements Fund 124
Park Development Fund 125
Drainage Fees Fund 126
Traffic Impact Fees Fund 127
TABLE OF CONTENTS (CONTINUED)
Page
Jack Hammett Sports Complex Fund 128
Lions Park Capital Improvements Fund 129
Internal Service Funds:
Combining Statement of Net Position 131
Combining Statement of Revenues, Expenses, and Changes in
Net Position 132
Combining Statement of Cash Flows 133
STATISTICAL SECTION (unaudited) Tables Page
Net Position by Component – Last Ten Fiscal Years 1 136
Changes in Net Position – Last Ten Fiscal Years 2 137
Fund Balances of Governmental Funds – Last Ten Fiscal Years 3 138
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years 4 139
Tax Revenues by Source, Governmental Funds – Last Ten Fiscal Years 5 140
Taxable Sales by Category – Last Ten Calendar Years 6 141
Principal Sales Tax Remitters by Category – Current and Nine Years Ago 7 142
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 8 143
Property Tax Levies and Collections – Last Ten Fiscal Years 9 144
Assessed Value and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years 10 145
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 11 146
Principal Property Taxpayers – Current and Nine Years Ago 12 147
Ratio of General Bonded Debt Outstanding and Legal Debt Margin -
Last Ten Fiscal Years 13 148
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 14 149
Direct and Overlapping Governmental Activities Debt 15 150
TABLE OF CONTENTS (continued)
Page
Demographic and Economic Statistics – Last Ten Calendar Years 16 151
Principal Employers – Current and Nine Years Ago 17 152
Operating Indicators by Function/Program – Last Ten Fiscal Years 18 153
Full-time Equivalent City Government Employees by Function/Program -
Last Ten Fiscal Years 19 154
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 20 155
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ANNUAL COMPREHENSIVEFINANCIAL REPORTINTRODUCTORY SECTION
CITY OF COSTA MESA 77 FAIR DRIVE, P.O. BOX 1200, COSTA MESA, CA 92628-1200
FROM THE OF FICE OF THE FINANCE DIRECTOR-CITY TREASURER
December 18, 2025
To the Honorable Mayor, Members of City Council, and Citizens of the City of Costa Mesa:
The Annual Comprehensive Financial Report (ACFR) of the City of Costa Mesa (the City) for
the fiscal year ended June 30, 2025, is hereby submitted. These statements have been
prepared in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards by an independent public accounting
firm of licensed certified public accountants.
This report consists of management's representations concerning finances of the City.
Management is responsible for the accuracy of the data, along with the completeness and
fairness of presentation, including all disclosures. To provide a reasonable basis for making
these representations, management has established a comprehensive internal control
framework that is designed both to protect the government's assets from loss, theft, or misuse
and to compile sufficient reliable information for preparation of financial statements in
conformity with GAAP. The City's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements
will be free from material misstatement because the cost of internal controls should not
outweigh their benefits.
Management asserts that to the best of its knowledge and belief, the enclosed data is accurate
in all material respects. It is reported in a manner designed to fairly present the financial
position and results of operations of various funds and component units of the City. All
disclosures necessary to enable the reader to gain an understanding of the City's financial
activities have been included.
The City's financial statements for the fiscal year ended June 30, 2025, have been audited by
CliftonlarsonAllen LLP, an independent public accounting firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended June 30, 2025, are free of material
misstatement. The independent audit involved examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements; assessing the accounting principles
used and significant estimates made by management; and evaluating the overall financial
statement presentation. The independent auditor concluded, based upon the audit, that there
was a reasonable basis for rendering an unmodified opinion that the City's financial
statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with
GAAP. The independent auditor's report is presented as the first component in the financial
section of this report.
The independent audit of the financial statements of the City was part of a broader, federally
mandated "Single Audit" designed to meet the special needs of federal granter agencies. The
standards governing Single Audit engagements require the independent auditor to report not
only on the fair presentation of the financial statements, but also on the audited government's
internal controls. There is a special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in the City's
separately issued Single Audit Report.
DEBT ADMINISTRATION
The City accounts for general debt service under the following funds in the financial
statements: the Public Financing Authority (PFA) Debt Service Fund and the Financing
Authority (FA) Debt Service Fund. Sources of revenues for retirement of outstanding bonded
indebtedness include general property and sales taxes.
In October 2017, the FA issued the 2017 Lease Revenue Bonds that refinanced the PFA Series
2007 Certificates of Participation (COP) and provided partial funding for the Lion's Park,
Donald Dungan Library and Norma Hertzog Neighborhood Community Center projects.
Standard & Poor's (S&P) rated the 2017 bonds AA+ upon initial issuance. On November 3,
2020, Standard & Poor's reaffirmed the 2017 bonds' AA+ long-term rating with a stable
outlook. According to the final report, S&P "reviewed governance risks and consider them
better than the sector standard because of the City's very strong management profile with
strong financial policies and practices, and successful economic development efforts."
The City continuously reviews existing debt for refunding possibilities to lower total debt
service requirements. The City has also adopted a comprehensive set of debt policies covering
all aspects of debt issuance in order to consolidate information for debt obligations and
maintain or improve its excellent credit standing.
FINANCIAL REPORTING AWARDS
The Government Finance Officers Association (GFOA) has awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive
Financial Report for the fiscal year ended June 30, 2024. This was the 27th consecutive year
that the City has received this prestigious award. In order to be awarded a Certificate of
Achievement for Excellence in Financial Reporting, the City must publish an easily readable
and efficiently organized Annual Comprehensive Financial Report. This report must also satisfy
both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe that our
June 30, 2025, Annual Comprehensive Financial Report continues to meet the Certificate of
Achievement program requirements, and it will be submitted to the GFOA to determine its
eligibility for another award.
ACKNOWLEDGMENTS
Special recognition is extended to the entire Finance Department for their ongoing dedication
and support to all City departments and residents on a daily basis. Special appreciation is also
extended specifically to the Accounting Division staff who contributed to and participated in
the coordination and preparation of this Annual Comprehensive Financial Report. In addition,
our deepest appreciation is also extended to the Central Services Division staff for their
assistance in the printing of this document. Further, thanks are also extended to our
independent auditors, CLA (CliftonLarsonAllen), for their continued oversight, expertise, and
advice.
Respectfully submitted,
CECILIA GALLARDO=ciAL
City Manager
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CAROL MOLINA
Finance Director
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City of Costa Mesa
List of Principal Officials
Mayor
John Stephens
City Council
Manuel Chavez
Mike Buley
Loren Gameros
Andrea Marr
Jeff Pettis
Arlis Reynolds
City Manager---------------------------------------------Cecilia Gallardo-Daly
City Attorney (Contract) ------------------------------------ Kimberly Barlow
Assistant City Manager ---------------------------------------- -- Alma Reyes
Development Services Director ------------------------------------- Carrie Tai
Finance Director -------------------------------------------------- Carol Molina
Information Technology Director ----------------------------------- Steve Ely
Parks and Community Services Director ----------------------- Brian Gruner
Public Works Director -------------------------------------- Raja Sethuraman
Fire Chief --------------------------------------------------------- Dan Stefano
Police Chief ---------------------------------------------------- Joyce Lapointe
City of Costa Mesa
Organization Chart
June 30, 2025
viii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Costa Mesa
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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ANNUAL COMPREHENSIVEFINANCIAL REPORTINDEPENDENT AUDITOR’S REPORT
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Costa Mesa
Costa Mesa, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the City of Costa Mesa (the City), as of and for
the year ended June 30, 2025, and the related notes to the financial statements, which collectively
comprise the City of Costa Mesa’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Costa Mesa, as of June 30, 2025, and the respective changes
in financial position, and, where applicable, cash flows thereof for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Emphasis of Matter - Change in Accounting Principle
As discussed in Note 18 to the financial statements, the City adopted the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, as of July 1, 2024.
Accordingly, the beginning net position for the governmental activities has been restated to reflect this
change in accounting principle. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
(2)
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Honorable Mayor and
Members of the City Council
City of Costa Mesa
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that that the
management’s discussion and analysis, schedules of changes in net pension liability and related ratios
of the pension plans, schedule of proportionate share of the net pension liability, schedules of pension
plan contributions, schedule of changes in net OPEB liability and related ratios, and the budgetary
comparison schedules for the general and major special revenue funds, be presented to supplement
the basic financial statements. Such information is the responsibility of management and, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with GAAS, which consisted of
inquiries of management about the methods of preparing the information and comparing the information
for consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit for the year ended June 30, 2025 was conducted for the purpose of forming opinions on the
financial statements that collectively comprise the City's basic financial statements. The combining and
individual fund financial statements and schedules for the year ended June 30, 2025 are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements for the year ended June 30, 2025 and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with GAAS. In our opinion, the combining and individual fund
financial statements and schedules are fairly stated, in all material respects, in relation to the basic
financial statements as a whole for the year ended June 30, 2025.
The financial statements of the City’s governmental activities, each major fund, and the aggregate
remaining fund information as of June 30, 2024 were audited by other auditors whose report dated
January 16, 2025, expressed unmodified opinions on those financial statements. Their report, as of the
same date, on the combining and individual fund financial statements and schedules stated that, in their
opinion, such information was fairly stated in all material respects in relation to the basic financial
statements for the year ended June 30, 2024, as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditors’ report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
Honorable Mayor and
Members of the City Council
City of Costa Mesa
(4)
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.
Report on Summarized Comparative Information
The financial statements of the City of Costa Mesa’s governmental activities, each major fund, and the
aggregate remaining fund information as of June 30, 2024 were audited by other auditors whose report
dated January 16, 2025, expressed unmodified opinions on those financial statements. In our opinion,
the summarized comparative information presented herein as of and for the year ended June 30, 2024,
is consistent, in all material respects, with the audited financial statements from which it has been
derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 18, 2025, on our consideration of the City of Costa Mesa’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the effectiveness of the City of Costa Mesa’s internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Costa Mesa’s internal control over financial
reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
December 18, 2025
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ANNUAL COMPREHENSIVEFINANCIAL REPORTMANAGEMENT’S DISCUSSION AND ANALYSIS
(5)
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Costa Mesa (City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2025. We
encourage all readers to consider information presented here in conjunction with additional information
that we have furnished in our letter of transmittal, which can be found on pages i–vii of this report.
FINANCIAL HIGHLIGHTS
Assets and deferred outflows of resources of the City’s primary government exceeded its liabilities
and deferred inflows of resources at the close of Fiscal Year 2025 by $111.8 million (net position).
Of this amount, $209.5 million (unrestricted net position deficit) primarily resulted from the unfunded
liabilities for pension plans and other postemployment benefits (OPEB) that impacted other
government agencies, along with the implementation of Government Accounting Standards Board
(GASB) 101. GASB 101 established standards for measuring and recognizing liabilities for certain
types of compensated absences.
In the government-wide financial statements, total net position decreased by $1.4 million from the
prior fiscal year total of $113.2 million due to the change in the GASB 101 compensated absences
reporting requirements.
In the fund financial statements, the governmental funds reported a combined ending fund balance
of $153.6 million, an increase of $3.8 million in comparison with the prior year total of $149.8 million.
At the end of Fiscal Year 2025, the General Fund’s unassigned fund balance was $19.3 million or
10.7 percent of General Fund expenditures of $180.5 million. Unassigned fund balance may be
used to meet the government’s ongoing obligations.
At June 30, 2025, the City reported $335.8 million in pension liabilities and $46.4 million in OPEB
liabilities.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the basic financial statements
which are comprised of three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the basic financial statements. This report also contains other required
supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference between assets/deferred outflows of
resources and liabilities/deferred inflows of resources reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information to show how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
(6)
and expenses are reported in this statement for some items that will result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). Governmental activities include general government, protection of persons and
property, community programs, public services, and interest on long-term debt. The City has no
business-type activities or discretely presented component units.
The basic government-wide financial statements can be found on pages 16-17 of this report.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of
the City’s funds can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government’s near-term financing requirements.
Considering the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental funds balance sheet and statement of revenues, expenditures, and
changes in fund balances provide reconciliations to facilitate this comparison between governmental
funds and governmental activities.
The City maintains 32 individual governmental funds. Information is presented separately in the
governmental funds balance sheet and statement of revenues, expenditures, and changes in fund
balances for the General, Government Grant, Capital Improvements, American Rescue Plan Act, and
Gas Tax funds, all of which are considered to be major funds. Data from the other 27 governmental
funds are combined into a single, aggregated presentation. Individual fund data for each of these
nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual operating and capital budget for its General, Special Revenue, and Capital
Projects funds. Budgetary comparison statements have been provided for these fund types to
demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 20-27 of this report.
(7)
Proprietary Funds
The City maintains one type of proprietary fund, internal service funds. Internal service funds are an
accounting device used to accumulate and allocate costs internally among various City functions. The
City uses internal service funds to account for equipment replacement, self-insurance (workers’
compensation, general liability, unemployment), and information technology replacement functions.
There are no business-type functions because they have been included within governmental activities
in the government-wide financial statements.
Proprietary funds provide the same type of information as government-wide financial statements, only
in more detail. Proprietary fund financial statements provide separate information for the Equipment
Replacement, Self-Insurance, and Information Technology Replacement funds, all of which are
considered to be nonmajor funds. The internal service funds are combined into a single, aggregated
presentation in the proprietary fund financial statements. Individual fund data for each nonmajor internal
service fund is provided in the form of combining statements in the supplementary schedules section of
this report.
The basic proprietary fund financial statements can be found on pages 28-30 of this report.
Fiduciary Funds
Fiduciary funds are used to account for Foundation resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because
resources of these funds are not available to support the City’s own programs and services. The
accounting method used for fiduciary funds is much like that used for proprietary funds. The basic
fiduciary fund financial statements can be found on pages 31-32 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of data provided in the
government-wide and fund financial statements. The notes to the basic financial statements can be
found on pages 33-78 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the City. Required supplementary information can be
found on pages 79-85 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and
internal service funds are presented immediately following the required supplementary information
section. Combined and individual fund statements and schedules can be found on pages 101-133 of
this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
City assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources
by $111.8 million at June 30, 2025, a decrease of $1.4 million from 2024 due to the change in the GASB
101 compensated absences reporting requirements.
(8)
As in previous years, the City’s net position continued to reflect the impact from implementations of
GASB Statements No. 68, 71 and 73 for pension and GASB 75 for OPEB, all of which account for the
City’s defined benefit liabilities. The City’s total defined benefit liability is estimated at $383.6 million on
the Statement of Net Position, a decrease of $10.6 million as compared to the prior year.
Another significant portion of the City’s total net position reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment), less related outstanding debt used to acquire assets that
are still in service. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City’s investment in its capital assets
is reported net of related debt, it should be noted that resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
At the end of Fiscal Year 2024-25, the City continued to report positive balances in two out of three
categories of net position for the government, as well as for its separate governmental activities. The
unrestricted net position ended the fiscal year with a balance of $209.5 million is primarily due to the
unfunded pension obligations and new changes in the GASB 101 reporting requirements. These
requirements recalculate compensated absences from a one-year to a three-year average. If absent,
the City’s net position would have increased by $1.3 million.
As a result of the new calculation of Fiscal Year 2024-25, the City’s total net position decreased by
$1.4 million.
(9)
(10)
Governmental Activities
During the current year, the net position for governmental activities decreased by $1.4 million from the
prior fiscal year’s ending balance of $113.2 million. Total revenues of $227.3 million were higher than
expenses and net transfers of $219.8 million. Key factors in the City’s net position included:
Charges for services increased by $3.0 million or 12.9 percent due to the increase in traffic
impact fees, building permits, paramedic fees, and plan check fees.
Property tax revenues increased by $3.1 million or 5.5 percent. The increase is due primarily
due to a steady housing market, increase in the City’s single-family homes median sales price,
and an increase in overall property assessed valuations.
Operating contributions and grants increased by $2.3 million or 10.0 percent primarily due to a
grant received for the Fire Station #4 Training Tower funding, Jack Hammett Sports Complex,
and LED lights for TeWinkle and Bark Park.
Sales and use taxes increased by $1.8 million or 2.4 percent, which is the City’s largest revenue
source. The sales and use tax increase is due to improved consumer spending in general
consumer goods and positive performance across various sectors during the remaining months
of the fiscal year.
Investment income increased by $1.5 million due to a higher yield on interest income.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As was noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
professional standards promulgated by oversight agencies and due to finance-related legal
requirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of the end of Fiscal Year 2024-25, the City’s governmental funds reported combined ending fund
balance of $153.6 million, an increase of $3.8 million or 2.5 percent in comparison with the prior fiscal
year fund balance of $149.8 million. Of this total amount:
$0.9 million represents nonspendable fund balance which includes amounts that cannot be
used because they are either not spendable in form or legally or contractually required to remain
intact.
$50.4 million represents restricted fund balance which includes amounts that can be spent only
for specific purposes stipulated by external sources or through enabling legislation.
$25.1 million represents committed fund balance which includes amounts that can be used only
for specific purposes determined by a formal action of the City Council. It includes legislation
(City Council action) that can only be overturned by a subsequent council action requiring a
voting consensus.
(11)
$57.9 million represents assigned fund balance which includes amounts that are designated or
expressed by the City Council for certain purposes but do not require formal actions like
resolutions or ordinances. City Council, via resolution, delegated the authority to establish,
modify, or rescind a fund balance assignment to the Finance Director.
The remaining $19.3 million constitutes unassigned fund balance.
The General Fund is the primary operating fund of the City. At the end of Fiscal Year 2024-25, the
General Fund’s fund balance increased by $0.6 million. While the total fund balance amounted to $61.0
million, the unassigned fund balance was $19.3 million. Key factors attributable to the increase in net
position include:
Tax revenue increased by $5.8 million or 3.8 percent. Notable contributors to this increase were
sales tax by $1.8 million due to price increases on consumer products. Property tax increased
by $2.9 million as a result of a steady housing market, increase in the City’s single-family homes
median sales price, an increase in overall property assessed valuations from new
developments, and improvements to properties. Cannabis and Business tax revenues increased
by $1.2 million due to higher annual receipts of new Measure Q Cannabis businesses.
Charges for services increased by $1.0 million or 10 percent. This includes a rise in paramedic
fees by $0.5 million, increase of permit fees by $0.3 million, as well as vehicle storage fees and
self-haul fees by $0.2 million.
Transient occupancy tax decreased by $0.2 million or 1.9 percent due to a slight reduction in
travel and tourism.
Major Funds Other Than the General Fund
The Capital Improvements Fund had $33.5 million in fund balance which represents a net decrease of
$1.9 million or 5.4 percent from the prior fiscal year. The decrease in fund balance is mainly attributed
to the increase in capital expenditures from $4.3 million to $8.0 million. The Citywide Street Maintenance
and Fire Station #4 Training Tower incurred the highest expenditures, $1.6 million and $1.5 million,
respectively.
The Government Grants Fund is comprised of reimbursements of Federal and State grants. It had a
fund balance of $0.6 million at the end of the fiscal year which represents a net increase of $2.1 million
or 137.7 percent from the prior fiscal year. The increase in fund balance is due to grant expenditures
reimbursements in the current year.
The Gas Tax Fund had a fund balance of $24.8 million, which represents a net increase of $2.9 million
or 13.5 percent increase from the prior fiscal year. Gas Tax revenues were $7.6 million compared to
$4.7 million in expenditures in Fiscal Year 2024-25. The revenue is primarily earmarked for street
related projects.
The American Rescue Plan Act (ARPA) Fund had $502,739 in fund balance in Fiscal Year 2024-25,
and had a fund balance of $425,256 in the prior fiscal year. The increase is due to interest earnings
received during the year.
(12)
Proprietary Funds
The City’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. The City also utilizes Internal Service Funds.
The unrestricted net position of the Internal Service Funds at the Fiscal Year 2024-25 was $19.6 million.
Total net position increased by $77,718 or 0.2 percent from the prior fiscal year. The increase in net
position is mainly attributed to a decrease in payables and an increase in assets for equipment and fleet
purchases.
GENERAL FUND BUDGETARY HIGHLIGHTS
During fiscal year 2024-25 the actual revenues were $169,212 or 0.1 percent higher than the final
amended budget. Sales tax revenue increased by $1.8 million and property tax revenue increased by
$2.9 million compared to the prior fiscal year. Additionally, charges for services revenue received
increased by $1.0 million compared to the prior fiscal year. Actual expenditures were $2.8 million or 1.5
percent lower than the final adjusted budget.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for its governmental activities (the City has no business-type
activities or discretely presented component units) as of June 30, 2025, amounted to $293.0 million.
The investment in capital assets includes: land, building improvements and structures, landscaping and
sprinklers, machinery and equipment, intangible assets, park system and facilities, and road and storm
drain infrastructure. The City’s investment in capital assets for the current fiscal year increased by $6.3
million. Major infrastructure asset additions during the fiscal year were: Adams Avenue and Pinecreek
Drive Intersection, LED Light Retrofit Project for Tennis Center and Bark Park, various building
maintenance projects, various street rehabilitation projects, and other ongoing capital projects. Other
assets capitalized included vehicle replacements and a variety of equipment purchases. During the
fiscal year, capital assets not being depreciated decreased by $12.8 million and capital assets being
depreciated or amortized increased by $36.1 million. The increase is due to several completed
infrastructure parks and roads projects.
(13)
Construction in progress as of June 30, 2025, totaled $14.6 million, $12.8 million lower than the previous
fiscal year. Generally, as the notice of completion (NOC) is filed on each project, the costs associated
with each project will be deleted from the construction in progress capital asset category and added to
the appropriate capital asset category in the year the NOC is filed. Construction in progress includes
some of the following projects with significant commitment balances:
Additional information on capital assets can be found in Note 7 on pages 54-55 of this report.
(14)
Long-Term Debt
At year-end, the City had one outstanding bond issue: the Financing Authority 2017 Lease
Revenue Bonds with an outstanding balance of $19.9 million. Additionally, the City had $33.0
million in other outstanding liabilities related to leases, loans, claims, and employee benefits.
Long-term liabilities had a net decrease of $0.07 million, primarily due to the City’s
outstanding leases.
Additional information on the City’s long-term debt can be found in Notes 8 through 9 on pages
60-64 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
During fiscal year 2024-25, the City continued to remain economically resilient, boasting new
businesses, diverse industries, and strong financial management. Positive indicators like
reduced unemployment and higher property values marked continued local economic growth,
while continuing to remain fiscally cautious for financial stability. Looking ahead for fiscal year
2025-26, the City anticipates a slowdown in economic growth and continues to exercise strong
fiscal management to ensure stability. Supported by a diverse economic base, robust reserves,
and commitment to quality service delivery, Costa Mesa is well prepared to proactively manage
anticipated economic challenges.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all who
have an interest in the government’s funding streams and overall fiscal conditions. This report
and other financial related information can be found on the City’s website
www.costamesaca.gov. Questions concerning any information provided in this report or
requests for additional financial information should contact:
By mail: Finance Department, City of Costa Mesa, P.O. Box 1200, Costa Mesa,
California, 92628-1200
By e-mail: financeadmin@costamesaca.gov
By phone: (714) 754-5243
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ANNUAL COMPREHENSIVEFINANCIAL REPORTGOVERNMENT-WIDE FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Statement of Net Position and the Statement of Activities report information about the City as a
whole and its activities. These statements include all assets, deferred outflows of resources, liabilities,
deferred inflows of resources, and net position using the accrual basis of accounting, which is similar to
accounting used by most private-sector companies. All current year revenues and expenses are taken
into account regardless of when cash is received or paid.
Statement of Net Position
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference between assets/deferred
outflows and liabilities/deferred inflows reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
Statement of Activities
The Statement of Activities presents information to show how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2024)
See accompanying Notes to Basic Financial Statements.
(16)
2025 2024
ASSETS
Cash and Cash Equivalents 184,451,972$ 193,341,227$
Cash and Investments with Fiscal Agent 30,711 381,491
Due from Other Governments 23,913,960 21,177,148
Accounts Receivable, Net 2,240,792 4,455,911
Interest Receivable 1,241,716 1,183,240
Loans Receivable, Net 4,839,435 2,795,774
Rent Receivable 465,156 395,963
Leases Receivable 3,170,693 3,484,578
Inventories 475,603 336,156
Prepaid Items 3,689,802 4,806,196
Capital Assets:
Capital Assets not Being Depreciated 79,001,208 91,833,291
Capital Assets, Net of Depreciation and Amortization 213,977,676 194,820,199
Total Assets 517,498,724 519,011,174
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts Related to Pensions 76,137,150 96,499,873
Deferred Amounts Related to OPEB 8,846,806 9,390,219
Total Deferred Outflows of Resources 84,983,956 105,890,092
LIABILITIES
Accounts Payable 9,166,846 12,026,252
Accrued Liabilities 5,824,297 4,906,459
Accrued Interest Payable 182,700 203,480
Retentions Payable 861,476 375,986
Deposits Payable 5,887,068 4,701,309
Unearned Revenue 4,103,587 12,503,260
Long-Term Liabilities:
Portion Due Within One Year 9,574,377 8,127,992
OPEB Liability Due Within One Year 2,900,880 1,889,161
Police Retirement 1% Supplemental Liability Due
Within One Year 180,680 188,828
Portion Due Beyond One Year 43,656,601 41,697,752
OPEB Liability 43,525,290 43,562,915
Police Retirement 1% Supplemental Liability Due 1,205,296 1,383,478
Net Pension Liability 335,790,094 347,226,468
Total Liabilities 462,859,192 478,793,340
DEFERRED INFLOWS OF RESOURCES
Deferred Amounts Related to Leases 2,933,190 3,295,536
Deferred Amounts Related to Pensions 5,623,027 7,858,571
Deferred Amounts Related to OPEB 19,294,991 21,748,934
Total Deferred Inflows of Resources 27,851,208 32,903,041
NET POSITION
Net Investment in Capital Assets 265,820,274 257,950,628
Restricted for:
Pension 2,092,360 -
Protection of Persons and Property 1,863,547 1,568,489
Community Programs 10,206,991 12,663,845
Public Services 37,019,168 9,246,161
Debt Service 1,001 -
Unrestricted (205,231,061) (168,224,238)
Total Net Position 111,772,280$ 113,204,885$
Governmental Activities
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED JUNE 30, 2024)
See accompanying Notes to Basic Financial Statements.
(17)
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions 2025 2024
Governmental Activities:
General Government 57,099,994$ -$ 329,200$ -$ (56,770,794)$ (46,030,042)$
Protection of Persons and Property 116,454,036 10,670,393 14,103,162 - (91,680,481) (92,436,403)
Community Programs 20,681,772 6,735,983 4,635,096 - (9,310,693) (17,197,227)
Public Services 30,882,547 8,564,419 6,948,633 4,477,056 (10,892,439) (4,369,573)
Interest on Long-Term Debt 807,311 - - - (807,311) (1,033,694)
Total Governmental Activities 225,925,660$ 25,970,795$ 26,016,091$ 4,477,056$ (169,461,718) (161,066,939)
General Revenues
Taxes:
Property Taxes 59,494,432 56,411,786
Sales and Use Taxes 78,244,492 76,400,160
Transient Occupancy Tax 9,962,421 10,150,696
Franchise Taxes 6,637,150 6,542,802
Business/Cannabis Tax 5,060,510 3,902,514
Other Intergovernmental - Unrestricted 349,375 138,951
Investment Income (Loss)8,709,004 7,200,904
Gain on sale of capital assets 68,995 -
Miscellaneous 2,288,046 2,579,220
Total General Revenues 170,814,425 163,327,033
CHANGE IN NET POSITION 1,352,707 2,260,094
Net Position - Beginning of Year, As Previously Reported 113,204,885 110,944,791
Restatement (2,785,312) -
Net Position - Beginning of Year, As Restated 110,419,573 110,944,791
NET POSITION - END OF YEAR 111,772,280$ 113,204,885$
Program Revenues Net Revenue
(Expenses) and
Changes in Net Position
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ANNUAL COMPREHENSIVEFINANCIAL REPORTFUND FINANCIAL STATEMENTS
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GOVERNMENTAL FUNDS
Major Governmental Funds
GENERAL FUND
The General Fund must be classified as a major fund in the accompanying fund financial statements
and is used to account for all general revenues of the City not specifically levied or collected for some
special purpose, and for expenditures related to the rendering of general services by the City. The
General Fund is used to account for all resources not required to be accounted for in another fund.
SPECIAL REVENUE FUNDS
Government Grants
Established to account for receipt and disbursement of grant monies provided by federal, state, and
county governmental agencies for various programs.
Gas Tax Fund
Established to account for the receipt and disbursement of funds required to be used for construction
and maintenance of the City’s road network system. Financing is provided by the City’s share of State
gasoline taxes, including allocations from the Highway Users Tax Account (HUTA) and the Road
Maintenance and Rehabilitation Account (RMRA).
American Rescue Plan Act (ARPA)
Established to account for the receipt and disbursement of grant monies under the American Rescue
Plan Act.
CAPITAL PROJECTS FUNDS
Measure M2 Fund
Established to account for the receipt and expenditure of the 2006 voter-approved one-half percent
sales tax for local transportation improvements. Measure M2 is a 30-year extension of the earlier
Measure M program.
Capital Improvements Fund
Established to account for the construction of capital facilities financed by the City’s General Fund and
various governmental grants.
Nonmajor Governmental Funds
Nonmajor governmental funds constitute all other governmental funds which include 14 Special
Revenue Funds, 10 Capital Projects Funds, and 1 Debt Service Fund.
CITY OF COSTA MESA, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2024)
See accompanying Notes to Basic Financial Statements.
(20)
American
Government Rescue
General Grants Gas Tax Plan Act
ASSETS
Cash and Investments 52,436,755$ 4,674,653$ 24,178,189$ 690,776$
Cash and Investments with Fiscal Agents - - - -
Due from Other Governments 19,884,347 719,447 810,927 -
Accounts Receivable, Net 1,833,781 - - -
Interest Receivable 431,840 9,879 158,106 4,781
Loans Receivable, Net 730 - - -
Leases Receivable 1,896,961 - - -
Rent Receivable 432,851 - - -
Due from Other Funds 181,028 - - -
Inventories 73,601 - - -
Prepaid Items 809,471 - - -
Total Assets 77,981,365$ 5,403,979$ 25,147,222$ 695,557$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 3,257,749$ 316,318$ 208,974$ 142,436$
Accrued Liabilities 5,543,579 15,984 35,871 -
Retentions Payable -170,764 76,491 -
Deposits Payable 5,499,974 - - -
Due to Other Funds - - - -
Unearned Revenue -4,040,040 -50,382
Total Liabilities 14,301,302 4,543,106 321,336 192,818
DEFERRED INFLOWS OF RESOURCES
Lease Related 1,700,925 - - -
Unavailable Revenue 1,017,334 281,074 56,361 -
Total Deferred Inflows of Resources 2,718,259 281,074 56,361 -
FUND BALANCES
Nonspendable:
Prepaid Items 809,471 - - -
Inventories 73,601 - - -
Restricted:
Pension and OPEB 2,092,360 - - -
Protection of Persons and Property - - - 502,739
Community Programs - - - -
Public Services -579,799 24,769,525 -
Debt Service --- -
Committed 25,125,000 - - -
Assigned 13,554,327 - - -
Unassigned 19,307,045 - - -
Total Fund Balances 60,961,804 579,799 24,769,525 502,739
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 77,981,365$ 5,403,979$ 25,147,222$ 695,557$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2024)
See accompanying Notes to Basic Financial Statements.
(21)
Nonmajor
Measure Capital Governmental
M2 Improvements Funds 2025 2024
7,286,084$ 34,430,582$ 23,521,960$ 147,218,999$ 154,610,165$
- - 30,711 30,711 381,491
1,531,002 182,427 785,810 23,913,960 21,177,148
- - 394,251 2,228,032 4,455,911
17,391 208,796 183,507 1,014,300 1,129,220
- - 4,838,705 4,839,435 2,795,774
- - 1,273,732 3,170,693 3,484,578
- - 32,305 465,156 395,963
- - - 181,028 65,076
- - 28 73,629 69,920
- - - 809,471 560,290
8,834,477$ 34,821,805$ 31,061,009$ 183,945,414$ 189,125,536$
2,404,183$ 956,969$ 1,510,234$ 8,796,863$ 9,942,792$
- 101 103,352 5,698,887 4,783,548
288,305 258,924 66,992 861,476 375,986
- - 387,094 5,887,068 4,701,309
- - 181,028 181,028 65,076
- - 13,165 4,103,587 12,503,260
2,692,488 1,215,994 2,261,865 25,528,909 32,371,971
- - 1,232,265 2,933,190 3,295,536
422,399 138,083 3,415 1,918,666 3,705,967
422,399 138,083 1,235,680 4,851,856 7,001,503
- - - 809,471 560,290
- - 28 73,629 69,892
- - - 2,092,360 3,367,408
- - 1,360,808 1,863,547 1,697,480
- - 10,203,576 10,203,576 10,475,793
5,719,590 - 5,190,420 36,259,334 30,915,892
- - 1,001 1,001 17,449
- - - 25,125,000 25,125,000
- 33,467,728 10,848,900 57,870,955 61,410,302
- -(41,269) 19,265,776 16,112,556
5,719,590 33,467,728 27,563,464 153,564,649 149,752,062
8,834,477$ 34,821,805$ 31,061,009$ 183,945,414$ 189,125,536$
Totals
Capital Projects
CITY OF COSTA MESA
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
JUNE 30, 2025
See Notes to Basic Financial Statements.
(23)
Total Fund Balance - Governmental Funds 153,564,649$
Amounts reported for governmental activities in the statement of net position are
different because:
When capital assets (property, plant, and equipment) for governmental activities are
purchased or constructed, the cost of those assets are reported as expenditures in
the governmental funds. However, the statement of net position includes those
capital assets among the assets of the City as a whole.
Cost of Capital Assets 699,527,331
Accumulated Depreciation/Amortization (423,057,765)
Long-term liabilities applicable to the City's governmental activities are not due and
payable in the current period and, accordingly, are not reported as fund
liabilities. All liabilities (both current and long term) are reported in the
statement of net position.
Bonds Payable (17,345,000)
Premium on Bonds (2,548,978)
Loans Payable (51,302)
Leases Payable (505,726)
Subscription Payable (694,991)
Employee Benefits Leave Payable (10,579,029)
Accrued liabilities in the statement of net position differ from the amount reported
in governmental funds due to accrued interest on outstanding debt payable.(182,700)
Internal service funds are used by management to charge the costs of certain
activities to individual City funds. The assets and liabilities of the internal service funds
are included in governmental activities in the statement of net position because
they primarily service governmental activities of the City.35,263,427
Certain unavailable revenues that do not provide current financial resources are
reported as deferred inflows of resources in the funds.1,918,666
Amounts regarding the pension plans and OPEB are as follows:
Deferred Outflows of Resources Related to Pensions 76,137,150
Deferred Outflows of Resources Related to OPEB 8,846,806
Deferred Inflows of Resources Related to Pensions (5,623,027)
Deferred Inflows of Resources Related to OPEB (19,294,991)
CalPERS Pension Liability (335,790,094)
OPEB Liability (46,426,170)
Police 1% Supplemental Retirement Liability (1,385,976)
Net Position of Governmental Activities 111,772,280$
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED JUNE 30, 2024)
See Notes to Basic Financial Statements.
(24)
American
Government Rescue
General Grants Gas Tax Plan Act
REVENUES
Taxes 159,222,229$ -$ -$ -$
Licenses and Permits 6,809,704 - - -
Charges for Services 11,235,537 - - -
Fines and Forfeitures 1,455,764 - - -
Intergovernmental 3,602,022 7,840,461 6,236,356 4,894,160
Investment Income (Loss)2,671,680 87,654 1,142,498 77,484
Rental Income 4,811,425 - - -
Miscellaneous 1,092,678 - 218,959 -
Total Revenues 190,901,039 7,928,115 7,597,813 4,971,644
EXPENDITURES
Current:
General Government 44,123,621 2,483,286 - -
Protection of Persons and Property 109,314,995 1,004,012 - 1,968,657
Community Programs 16,651,172.00 503,154 - -
Public Services 9,689,267.00 1,819,846 4,659,007 -
Debt Service:
Principal 594,726 - - -
Interest and Fiscal Charges 116,351 - - -
Total Expenditures 180,490,132 5,810,298 4,659,007 1,968,657
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 10,410,907 2,117,817 2,938,806 3,002,987
OTHER FINANCING SOURCES (USES)
Subscriptions Proceeds 1,036,210 - - -
Transfers In - - - -
Transfers Out (10,848,214) - - (2,925,504)
Total Other Financing Sources (Uses)(9,812,004) - - (2,925,504)
NET CHANGE IN FUND BALANCES 598,903 2,117,817 2,938,806 77,483
Fund Balances - Beginning of Year
As Previously Presented 60,362,901 (1,538,018) 21,830,719 425,256
Change within financial reporting entity
(nonmajor to major fund)- - - -
Fund Balances - Beginning of Year
As Restated 60,362,901 (1,538,018) 21,830,719 425,256
FUND BALANCES - END OF YEAR 60,961,804$ 579,799$ 24,769,525$ 502,739$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED JUNE 30, 2024)
See Notes to Basic Financial Statements.
(25)
Nonmajor
Measure Capital Governmental
M2 Improvements Funds 2025 2024
-$ -$ 27,912$ 159,250,141$ 153,486,531$
-- - 6,809,704 5,982,422
-- 987,203 12,222,740 10,568,751
-- 18,655 1,474,419 1,422,437
3,860,654 566,334 6,073,639 33,073,626 26,518,073
374,600 1,570,269 1,131,922 7,056,107 5,731,450
- - 658,403 5,469,828 5,396,192
-22,401 579,498 1,913,536 1,650,312
4,235,254 2,159,004 9,477,232 227,270,101 210,756,168
-37,180 6,139,896 52,783,983 43,466,720
-215,911 679,793 113,183,368 104,825,629
-103,963 2,026,267 19,284,556 25,158,889
6,283,124 7,671,607 2,755,714 32,878,565 20,328,775
- - 2,015,000 2,609,726 2,486,391
- - 781,175 897,526 941,676
6,283,124 8,028,661 14,397,845 221,637,724 197,208,080
(2,047,870) (5,869,657) (4,920,613) 5,632,377 13,548,088
- - - 1,036,210 -
- 3,949,994 7,171,441 11,121,435 15,195,375
- - (203,717) (13,977,435) (18,892,041)
-3,949,994 6,967,724 (1,819,790) (3,696,666)
(2,047,870) (1,919,663) 2,047,111 3,812,587 9,851,422
-35,387,391 33,283,813 149,752,062 139,900,640
7,767,460 - (7,767,460) - -
7,767,460 35,387,391 25,516,353 149,752,062 139,900,640
5,719,590$ 33,467,728$ 27,563,464$ 153,564,649$ 149,752,062$
Totals
Capital Projects
CITY OF COSTA MESA, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
See Notes to Basic Financial Statements.
(27)
Net Change in Fund Balance - Governmental Funds 3,812,587$
Amounts reported for governmental activities in the Statement of Activities are
different because:
When capital assets for governmental activities are purchased or constructed, the
resources expended for those assets are reported as expenditures in governmental funds.
However, in the Statement of Activities, the cost of those assets is allocated over their
estimated lives and reported as depreciation expense. As a result, fund balance
decreases by the amount of financial resources used, whereas net position decreases
by the amount of depreciation expense charged for the year.
Capital Outlay 21,430,756
Depreciation Expense (16,543,381)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds. Repayment of debt service is reported as an expenditure in governmental funds
and, thus, has the effect of reducing fund balances because current financial resources
have been used. For the City as a whole, however, the principal payments reduce the
liabilities in the statement of net position and do not result in an expense in the
Statement of Activities.
Net Changes in Employee Benefits Leave Payable (1,811,696)
Subscriptions Proceeds (1,036,210)
Principal Payments - Bonds 2,015,000
Principal Payments - Loans Payable 15,391
Principal Payments - Lease Payable 234,541
Principal Payments - Subscription Payable 344,794
Amortization of Bond Premium 147,767
Pension and OPEB expense reported in the governmental funds include the actual
contributions. In the Statement of Activities, pension and OPEB expenses include the
change in net position and OPEB liabilities and the related changes in pension and
OPEB amounts for deferred outflows of resources and deferred inflows of resources.
Net Change in Pension Liability (6,504,475)
Net Change in OPEB Liability 936,436
Recording of the current year change of accrued interest on outstanding
debt payable.20,780
Internal service funds are used by management to charge the costs of certain activities
to individual City funds. The adjustments for internal service funds "close" those funds
by charging additional amounts to participating governmental activities to
completely cover the internal service funds' costs for the year,.77,718
Certain unavailable revenues that do not provide current financial resources are
reported as deferred inflows of resources in the funds.(1,787,301)
Change in Net Position of Governmental Activities 1,352,707$
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2024)
See Notes to Basic Financial Statements.
(28)
2025 2024
ASSETS
CURRENT ASSETS
Cash and Investments 37,232,973$ 38,731,062$
Accounts Receivable 12,760 -
Interest Receivable 227,416 54,020
Prepaid Items 2,880,331 4,245,906
Inventories 401,974 266,236
Total Current Assets 40,755,454 43,297,224
CAPITAL ASSETS
Intangible Assets 1,932,537 -
Motorized Equipment 24,570,988 22,875,746
Other Equipment 8,832,890 5,928,501
Accumulated Depreciation (18,827,097) (13,732,948)
Capital Assets, Net 16,509,318 15,071,299
Total Assets 57,264,772 58,368,523
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 369,983 2,083,460
Accrued Liabilities 125,410 122,911
Notes Payable 891,411 864,738
Claims Payable 1,293,969 862,543
Total Current Liabilities 2,680,773 3,933,652
LONG-TERM LIABILITIES
Notes Payable 4,259,726 5,151,138
Claims Payable 15,060,846 14,098,024
Total Long-Term Liabilities 19,320,572 19,249,162
Total Liabilities 22,001,345 23,182,814
NET POSITION
Net Investment in Capital Assets 11,358,181 9,055,423
Unrestricted 23,905,246 26,130,286
Total Net Position 35,263,427$ 35,185,709$
Governmental Activities -
Internal Service Funds
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED JUNE 30, 2024)
See Notes to Basic Financial Statements.
(29)
2025 2024
OPERATING REVENUES
Charges for Services 11,236,062$ 10,938,708$
OPERATING EXPENSES
Allocated Administrative Costs 5,231,815 4,288,668
Depreciation 1,632,720 1,532,452
Fuel and Repair Parts 974,182 1,423,961
Claims and Premiums 7,892,862 6,768,057
Total Operating Expenses 15,731,579 14,151,483
OPERATING LOSS (4,495,517) (3,212,775)
NONOPERATING REVENUES (EXPENSES)
Investment Income (Loss)1,652,894 1,469,458
Other Nonoperating Revenue 73,678 10,000
Interest Expense (78,332) (55,041)
Gain/(Loss) on Disposal of Equipment 68,995 145,438
Total Nonoperating Revenues (Expenses)1,717,235 1,569,855
LOSS BEFORE TRANSFERS (2,778,282) (1,642,920)
TRANSFERS
Transfers In 2,856,000 3,716,386
CHANGE IN NET POSITION 77,718 2,053,746
Net Position - Beginning of Year 35,185,709 33,131,963
NET POSITION - END OF YEAR 35,263,427$ 35,185,709$
Governmental Activities -
Internal Service Funds
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
JUNE 30, 2025
(WITH SUMMARIZED FINANCIAL INFORMATION FOR THE YEAR ENDED JUNE 30, 2024)
See Notes to Basic Financial Statements.
(30)
2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and User Departments 11,223,302$ 10,938,708$
Cash Payments to Suppliers for Goods and Services (11,023,030) (7,197,189)
Cash Payments to Employees for Services (2,162,722) -
Cash Received from Other Sources 73,678 (2,926,462)
Net Cash Provided (Used) by Operating Activities (1,888,772) 815,057
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Received from Other Funds 2,856,000 3,716,386
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal Paid on Capital Debt (864,739) (563,165)
Interest Paid on Capital Debt (78,332) (55,041)
Proceeds from Sale of Capital Assets 127,830 178,217
Acquisition of Capital Assets (3,129,574) (6,896,181)
Net Cash Used by Capital and Related Financing Activities (3,944,815) (5,049,721)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income (Loss)1,479,498 1,459,030
Net Cash Provided by Investing Activities 1,479,498 1,459,030
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,498,089) 921,032
Cash and Cash Equivalents - Beginning of Year 38,731,062 37,810,030
CASH AND CASH EQUIVALENTS - END OF YEAR 37,232,973$ 38,731,062$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss)(4,495,517)$ (3,212,775)$
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 1,632,720 1,532,452
Other Revenues 73,678 -
(Increase) Decrease in Accounts Receivable (12,760) -
(Increase) Decrease in Inventories 1,365,575 (117,033)
(Increase) Decrease in Prepaid Items (135,738) 242,026
Increase (Decrease) in Accounts Payable (1,713,477) 1,247,568
Increase (Decrease) in Accrued Liabilities 2,499 (10,349)
Increase (Decrease) in Claims Payable 1,394,248 1,133,168
Net Cash Provided (Used) by Operating Activities (1,888,772)$ 815,057$
Governmental Activities -
Internal Service Funds
There were no noncash investing, capital and financing activities during fiscal year ended June 30, 2025.
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
See Notes to Basic Financial Statements.
(31)
Custodial
Fund
ASSETS
Cash and Cash Equivalents 253,253$
Accounts Receivable 46
Total Assets 253,299
LIABILITIES
Accounts Payable 12,275
Deposits Payable 34,160
Total Liabilities 46,435
FIDUCIARY NET POSITION
Restricted for:
Individuals, Organizations, and Other
Governments 206,864
Total Fiduciary Net Position 206,864$
CITY OF COSTA MESA, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025
See Notes to Basic Financial Statements.
(32)
Custodial
Fund
ADDITIONS:
Donations 5,988$
Investment Income 695
Total Additions 6,683
DEDUCTIONS:
Remittance to Others 376,115
Total Deductions 376,115
CHANGE IN FIDUCIARY NET POSITION (369,432)
Total Fiduciary Net Position - Beginning of Year 576,296
TOTAL FIDUCIARY NET POSITION - END OF YEAR 206,864$
NO
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ANNUAL COMPREHENSIVEFINANCIAL REPORTNOTES TO THE FINANCIAL STATEMENTS
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(33)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the City of Costa Mesa,
California (City):
A. Description of the Reporting Entity
The City of Costa Mesa was incorporated on June 29, 1953 as a general law city under
the Government Code of the State of California. The City operates under a Council-
Manager form of government. Among services provided by the City are the following:
public works, parks and recreation, planning, community development, fire, and law
enforcement services.
As required by generally accepted accounting principles, these financial statements
present the City and its component units, entities for which the City is considered to be
financially accountable. The City is considered to be financially accountable for an
organization if the City appoints a voting majority of that organization’s governing body
and the City is either able to impose its will on that organization, or there is a potential for
that organization to provide specific financial benefits to or impose specific financial
burdens on the City. The City is also considered to be financially accountable if an
organization is fiscally dependent upon the City (i.e., it is unable to adopt its budget, levy
taxes, set rates or charges, or issue bonded debt without approval from the City). In
certain cases, other organizations are included as component units if the nature and
significance of their relationship with the City are such that their exclusion would cause
the City’s financial statements to be misleading or incomplete.
All of the City’s component units are considered to be blended component units.
Blended component units, although legally separate entities, are, in substance, part of
the City’s operations and so data from these units are appropriately presented as funds
of the primary government. The following organizations are considered to be component
units of the City:
Costa Mesa Housing Authority
The Costa Mesa Housing Authority (Housing Authority) was created pursuant to the
State of California Health and Safety Code, Section 34176(a). The Housing Authority
promotes affordable housing for low and moderate income households within the City,
administers the homeless outreach program and operates the bridge shelter for
homeless individuals.
The Housing Authority is a separate entity primarily funded by housing loan repayments
and transfers from the City.
City Council members, in separate session, serve as the governing board of the Housing
Authority, and all accounting and administrative functions are performed by the City.
Financial activity of the Housing Authority has been reported as if it were part of the City
in the Housing Authority Special Revenue Fund. Separate financial statements of the
Housing Authority can be obtained at City Hall.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(34)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Description of the Reporting Entity (Continued)
Costa Mesa Financing Authority
The Costa Mesa Financing Authority (Financing Authority) was created by a joint powers
agreement between the City of Costa Mesa (the City) and the Costa Mesa Housing
Authority (the Housing Authority), dated August 1, 2017. It was created pursuant to
Article 1 of Chapter 5 of Division 7 of Title of the Government Code of the State of
California (the JPA Act). Transactions of the Financing Authority are reported in the Debt
Service Fund. Separate financial statements of the Financing Authority can be obtained
at City Hall.
B. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the basic financial statements
Government-Wide Financial Statements
Government-wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business-type activities of the primary
government (including its blended component units), as well as its discretely presented
component units. The City has no business-type activities or discretely presented
component units. Eliminations have been made in the Statement of Activities so that
certain allocated expenses are recorded only once (by the function to which they were
allocated). However, general government expenses have not been allocated as indirect
expenses to the various functions of the City.
Government-wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and
obligations of the reporting government are reported in the government-wide financial
statements. Basis of accounting refers to when revenues and expenses are recognized
in the accounts and reported in the financial statements.
Under the accrual basis of accounting, revenues, expenses, gains, losses, assets,
deferred outflows of resources, liabilities, and deferred inflows of resources resulting
from exchange and exchange-like transactions are recognized when the exchange takes
place. Revenues, expenses, gains, losses, assets, deferred outflows of resources,
liabilities, and deferred inflows of resources resulting from nonexchange transactions are
recognized in accordance with the requirements of GASB Statement No. 33.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Accounting and Measurement Focus (Continued)
Government-Wide Financial Statements (Continued)
Program revenues include charges for services, special assessments, and payments
made by parties outside of the reporting government’s citizenry if that money is restricted
to a particular program. Program revenues are netted with program expenses in the
Statement of Activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government-
wide financial statements, rather than reported as expenditures. Proceeds of long- term
debt are recorded as a liability in the government-wide financial statements, rather than
as other financing sources. Amounts paid to reduce long-term indebtedness of the
reporting government are reported as a reduction of the related liability, rather than as
expenditures.
Franchise fees and business license charges have been reported as general revenues
because the fees are based on gross receipts, not charges for services.
Fund Financial Statements
The underlying account system of the City is organized and operated on the basis of
separate funds. A fund is defined as an independent fiscal and accounting entity with a
self-balancing set of accounts, recording resources, related liabilities, obligations,
reserves, and equities segregated for the purpose of carrying out specific activities or
attaining certain objectives in accordance with special regulations, restrictions or
limitations. Fund financial statements for the primary government’s governmental,
proprietary, and fiduciary funds are presented after the government-wide financial
statements. These statements display information about major funds individually and
nonmajor funds in the aggregate for governmental funds. Proprietary statements include
financial information for internal service funds. Fiduciary statements include financial
information for agency and private purpose trust funds. Fiduciary funds of the City
represent assets held by the City in a custodial capacity for other individuals or
organizations.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified
accrual basis of accounting. Revenues are recognized when they become measurable
and available as net current assets. Measurable means that the amounts can be
estimated or otherwise determined. Available means that the amounts were collected
during the reporting period or soon enough thereafter to be available to finance the
expenditures accrued for the reporting period.
The City uses an availability period of 60 days for all governmental fund revenue, except
for grant revenue which uses an availability period of 90 days.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Funds (Continued)
Sales taxes, property taxes, franchise taxes, motor vehicle in lieu, transient occupancy
taxes, grants, and interest associated with the current fiscal period are all considered to
be susceptible to accrual and so have been recognized as revenues of the current fiscal
period to the extent normally collected within the availability period. Other revenue items
are considered to be measurable and available when cash is received by the
government.
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods or
services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they
are based takes place. Imposed nonexchange transactions are recognized as revenues
in the period for which they were imposed. If the period of use is not specified, they are
recognized as revenues when an enforceable legal claim to the revenues arises or when
they are received, whichever occurs first. Government-mandated and voluntary
nonexchange transactions are recognized as revenues when all applicable eligibility
requirements have been met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that generally only current assets,
current liabilities and deferred inflows of resources are included on their balance sheets.
The reported fund balance is considered to be a measure of “available spendable
resources.” Governmental fund operating statements present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in fund
balance. Accordingly, they are said to present a summary of sources and uses of
“available spendable resources” during a period.
Noncurrent portions of long-term receivables due to governmental funds are reported on
the balance sheet in spite of their spending measurement focus. Special reporting
treatments are used to indicate, however, that they should not be considered “available
spendable resources,” since they do not represent fund balance.
Recognition of governmental fund type revenues represented by unavailable revenues
are reported as deferred inflows of revenues.
Due to the nature of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities. Since
they do not affect net current assets, such long-term amounts are not recognized as
governmental fund type expenditures or fund liabilities.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Funds (Continued)
Amounts expended to acquire capital assets are recorded as expenditures in the year
that resources were expended, rather than as fund assets. Proceeds of long-term debt
are recorded as other financing sources, rather than a fund liability. Amounts paid to
reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted
resources.
Proprietary and Fiduciary Funds
The City’s internal service funds are proprietary funds. In the fund financial statements,
proprietary and all fiduciary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when
related goods or services are delivered.
In the fund financial statements, proprietary and all fiduciary funds are presented using
the economic resources measurement focus. This means that all assets and all liabilities
(whether current or noncurrent) associated with their activity are included in the
Statement of Net Position. Proprietary fund type operating statements present increases
(revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are
those in which each party receives and gives us essentially equal values. Nonoperating
revenues, such as investment income, gain or loss on sale of equipment and
miscellaneous revenues result from nonexchange transactions or ancillary activities.
Operating expenses for internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All expenses not meeting
this definition are reported as nonoperating expenses. Amounts paid to acquire capital
assets are capitalized as assets in the internal service fund financial statements, rather
than being reported as expenses. Proceeds of long-term debt are recorded as liabilities
in the internal service fund financial statements, rather than being reported as other
financing sources. Amounts paid to reduce long-term indebtedness of the internal
service fund are reported as reductions of the related liability, rather than as expenses.
The City’s custodial funds are fiduciary funds and use the accrual basis of accounting.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.Property Tax Calendar
Property tax revenues are recognized in the fiscal year for which the taxes have been
levied, provided this accrual meets the available criteria. “Available” means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the
current period. The County of Orange collects property taxes for the City tax liens
attached annually as of 12:01 a.m. on the first day in January preceding the fiscal year
for which the taxes are levied. The tax levy covers the fiscal period July 1st to June 30th.
All secured personal property taxes and one-half of the taxes on real property are due
November 1st. The second installment is due February 1st. All taxes are delinquent if
not paid as of December 10th and April 10th, respectively. Unsecured personal property
taxes become due on March 1st each year and are delinquent if not paid as of August
31st.
D. Fund Classifications
The City reports the following major governmental funds:
General Fund – The General Fund is the general operating fund of the City. All general
tax revenues and other receipts that are not restricted by law or contractual agreement
to some other fund are accounted for in this fund. Expenditures of this fund include the
general operating expenditures and other costs, which are not paid through other funds.
Special Revenue Fund
Government Grants – Established to account for receipt and disbursement of grant
monies provided by federal, state, and county governmental agencies for various
programs.
Gas Tax – Established to account for the receipt and disbursement of funds required to
be used for construction and maintenance of the City’s road network system. Financing
is provided by the City’s share of State gasoline taxes, including allocations from the
Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation
Account (RMRA).
American Rescue Plan Act – Established to account for receipt and disbursement of
ARPA monies received under the American Rescue Plan Act.
Capital Projects Fund
Measure M2 Fund – This capital projects fund was established to account for
construction of capital facilities financed by Measure M2 monies.
Capital Improvements Fund – This capital projects fund was established to account for
construction of capital facilities financed by the City’s General Fund and various
governmental grants.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Fund Classifications (Continued)
Capital Projects Fund (Continued)
The City’s fund structure also includes the following fund types:
Special Revenue Funds – The special revenue funds are used to account for the
proceeds of specific revenue sources that are restricted by law or administrative action
for a specified purpose.
Debt Service Funds – The debt service funds are used to account for the accumulation
of resources for, and the payment of, long-term liabilities, interest, and related fiscal
agent costs.
Capital Projects Funds – The capital projects funds are used to account for financial
resources segregated for the acquisition and construction of major capital facilities (other
than those financed by the proprietary funds).
Internal Service Funds – The internal service funds are used to finance and account for
activities involved in rendering equipment replacement, self-insurance services, and
information technology replacement to departments within the City. Costs of materials,
equipment, and services used are accumulated in these funds and charged to the user
departments as such goods are delivered or services rendered.
Custodial Funds – The custodial funds are used to account for assets held by the City as
an agent for individuals, private organizations, and other governments. The custodial
funds are used to account for fees, assessments, seizures, and donations for which the
City is acting in an agent capacity.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Cash and Investments
Certain assets and liabilities are required to be reported at fair value. The fair value
framework provides a hierarchy that prioritizes the inputs to valuation techniques used to
measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements). The three levels of fair value
hierarchy are described as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for
identical assets or liabilities in active markets.
Level 2 –Inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly and fair value is determined
through the use of models or other valuation methodologies including:
quoted prices for similar assets or liabilities in active markets;
quoted prices for identical or similar assets or liabilities in markets that are
inactive;
inputs other than quoted prices that are observable for the asset or liability;
inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the
fair value measurement. These unobservable inputs reflect the City’s own
assumptions about the inputs market participants would use in pricing the asset or
liability (including assumptions about risk). These unobservable inputs are developed
based on the best information available in the circumstances and may include the
City’s own data.
F. Cash Equivalents
For purposes of the Statement of Cash Flows, cash equivalents are defined as short-
term, highly liquid investments that are both readily convertible to known amounts of
cash or so near their maturity that they present insignificant risk of changes in value
because of changes in interest rates. Cash and cash equivalents include all investments
with original purchase maturities of three months or less. Cash equivalents also
represent the proprietary funds share in the cash and investment pool of the City.
The City pools idle cash from all funds in order to maximize income from investment
activities. Investments are recorded on the City’s books at fair value (quoted market
price or best available estimate thereof). Interest income on investments is allocated to
individual funds on the basis of monthly cash and investment balances.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G.Inventories
Inventories of materials and supplies are carried at cost on an average cost basis. The
City uses the consumption method of accounting for inventories.
H.Prepaids
The City uses the consumption method to record prepaid items.
I.Leases
The City is a lessor and lessee for leases as detailed in Notes 6 and 9. The City
recognizes a lease receivable, a deferred inflow of resources, and a lease payable in the
financial statements.
At the commencement of the lease, the City initially measures the lease receivable at
the present value of payments expected to be received and paid during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments
received and the lease payable is reduced by the principal portion of lease payments
made. The deferred inflow of resources is initially measured as the initial amount of the
lease receivable, adjusted for lease payments received at or before the lease
commencement date. Subsequently, the deferred inflows of resources is recognized as
revenue over the life of the lease term.
Key estimates and judgments include how the City determines the discount rate it uses
to discount the expected lease receipts and payments to present value, lease term and
lease receipts.
The City uses the estimated cost of capital rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
The City monitors changes in circumstances that would require a remeasurement of its
leases and will remeasure the lease receivable and deferred inflows of resources if
certain changes occur that are expected to significantly affect the amount of the lease
receivable.
J.Subscription-Based Information (IT) Arrangements
The City is a participant in subscription-based IT arrangements as detailed in Note 9.
The City recognizes a subscription-based IT payable and right to use IT assets in the
financial statements. At the commencement of the arrangement, the City initially
measures the payable at the present value of payments expected to be paid during the
arrangement term. Subsequently, the payable is reduced by the principal portion of
payments made. The right to use assets are initially measured at the initial amount of the
subscription-based IT payable. Subsequently, the right to use assets are amortized over
the life of the arrangement term.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Capital Assets
Capital assets (including infrastructure) are recorded at historical cost at the time of
purchase. Assets acquired from gifts or contributions are recorded at acquisition value
on the date received. Generally, capital asset purchases in excess of $5,000 are
capitalized if they have an expected useful life of two years or more.
Capital assets include public domain (infrastructure) capital assets consisting of certain
improvements including roads, streets, sidewalks, medians, sewers, and storm drains.
Public domain assets acquired prior to 1980 have been included in the accompanying
financial statements.
Capital assets used in operations are depreciated or amortized over their estimated
useful lives using the straight-line method in the government-wide financial statements
and in the fund financial statements of proprietary funds. It is the City’s policy to begin
depreciating or amortizing assets when they are placed in service. Depreciation and
amortization are charged as expenses against operations and accumulated depreciation
and amortization are reported on the respective Statement of Net Position.
The ranges of lives used for computing depreciation and amortization for each capital
asset class are as follows:
Building Improvements and Structures 10 to 20 Years
Landscaping and Sprinklers 35 to 40 Years
Automotive Equipment 2 to 20 Years
Office Furniture 5 to 20 Years
Office Machines 3 to 20 Years
Office Equipment 5 to 60 Years
Intangible Assets 7 to 10 Years
Right-to-Use Lease Assets 2 to 7 Years
Right-to-Use Subscription Assets 2 to 7 Years
Park System and Facilities 10 to 25 Years
Infrastructure – Roads 10 to 50 Years
Infrastructure – Storm Drains 50 to 100 Years
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L.Deferred Outflows/Inflows of Resources
The Statement of Net Position and the governmental funds balance sheet will
sometimes report a separate section for deferred outflows of resources. This financial
statement element, deferred outflows of resources, represents a consumption of net
assets that applies to future periods and so will not be recognized as an outflow of
resources (expenditure) until that time. The City has two items that qualify for reporting
in this category. The items are deferred outflows related to pensions and OPEB.
The Statement of Net Position and the governmental funds balance sheet will
sometimes report a separate section for deferred inflows of resources. This financial
statement element, deferred inflows of resources, represents an acquisition of net assets
that applies to future periods and so will not be recognized as an inflow of resources
(revenue) until that time. The City has four types of items which qualify for reporting in
this category. Three of the items are deferred inflows related to pensions, OPEB, and
leases which are presented on the government-wide Statement of Net Position. The
fourth item, unavailable revenue, is reported only in the governmental funds balance
sheet. The governmental funds report unavailable revenues from accounts, taxes, grant
and lease receivables. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
M. Fund Balances
Fund balances are reported in the fund statements in the following classifications:
Nonspendable Fund Balance – This includes amounts that cannot be spent because
they are either not spendable in form (such as inventory) or legally or contractually
required to be maintained intact (such as endowments).
Restricted Fund Balance – This includes amounts that can be spent only for specific
purposes stipulated by constitution, external resource providers, or through enabling
legislation. If Council action limiting the use of funds is included in the same action
(legislation) that created (enables) the funding source, then it is restricted.
Committed Fund Balance – This includes amounts that can be used only for specific
purposes determined by formal action of a city ordinance by the Council. It includes
legislation (Council action) that can only be overturned by new legislation requiring the
same type of voting consensus that created the original action. Therefore, if Council
action limiting the use of funds is separate from the action (legislation) that created
(enables) the funding source, then it is committed, not restricted. For the purposes of
establishing, modifying, and rescinding a committed fund balance, the City considers an
ordinance more binding than a resolution or a minute action by City Council.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Fund Balances (Continued)
Assigned Fund Balance – This includes amounts that are designated or expressed by
the Council, but does not require a formal action like a resolution or ordinance. The
Council may delegate the ability to an employee or committee to assign uses of specific
funds for specific purposes. In June 2011, the City Council passed Resolution 11-27,
delegating authority to establish, modify, or rescind a fund balance assignment to the
finance director.
Unassigned Fund Balance – This includes amounts that are the residual balance for the
City’s general fund and includes all spendable amounts not contained in other
classifications. In other funds, the unassigned classification is used only to report a
deficit balance resulting from overspending for specific purposes for which amounts had
been restricted, committed or assigned.
In order to calculate the amounts to report as restricted, committed, assigned, and
unassigned fund balance in the governmental fund financial statements, a flow
assumption must be made about the order in which the resources are considered to be
applied. It is the government’s policy to consider restricted fund balance to have been
depleted before using any components of unrestricted fund balance. Further, when
components of the unrestricted fund balance can be used for the same purpose,
committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
N. Net Position
Net position is comprised of three components: net investment in capital assets,
restricted, and unrestricted.
Net Investment in Capital Assets - Consists of capital assets, net of accumulated
depreciation/amortization and reduced by outstanding balances of bonds, notes, and
other debt that are attributable to the acquisition, construction, or improvement of those
assets. Deferred outflows of resources and deferred inflows of resources that are
attributable to the acquisition, construction, or improvement of those assets or related
debt are included in this component of net position.
Restricted Net Position - Is reported when there are limitations imposed on use either
through enabling legislation or through external restrictions imposed by creditors, grants,
laws or regulations of other governments.
Unrestricted Net Position - Is the amount of net position that does not meet the definition
of the two preceding categories.
When both restricted and unrestricted resources are available for use, it is the City of
Costa Mesa’s policy to use restricted resources first, then unrestricted resources as they
are needed.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O.Employee Leave Benefits
The liability for employee leave benefits reported in the government-wide statements
consists of leave that has not been used that is attributable to services already rendered,
accumulates and is more likely than not to be used for time off or otherwise paid in cash
or settled through noncash means. The liability also includes amounts for leave that has
been used for time off but has not yet been paid in cash or settled through noncash
means and certain other types of leave.
P.Claims and Judgments
The City records a liability for litigation, judgments, and claims when it is probable that
an asset has been impaired or a liability has been incurred prior to year-end and the
probable amount of loss (net of any insurance coverage) can be reasonably estimated.
This liability is recorded in an internal service fund, which accounts for the City’s self-
insurance activities.
Q.Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
fiduciary net position have been determined on the same basis. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when currently
due and payable in accordance with the benefit terms. Investments are reported at fair
value.
GASB 68 requires that the reported results must pertain to liability and asset information
within certain defined timeframe. For this report, the following timeframes are used:
CalPERS Plans
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Supplemental Plan
Valuation Date June 30, 2024
Measurement Date June 30, 2025
Measurement Period July 1, 2024 to June 30, 2025
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense and information
about the plan (OPEB Plan), have been determined by an independent actuary. For this
purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain
to liability information within certain defined timeframes. For this report, the following
timeframes are used:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
S. Use of Estimates
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
T. Prior Year Information
Comparative amounts for the prior year have been presented in the basic financial
statements to provide an understanding of changes in the City's financial position and
operations. The comparative amounts may be summarized in total and not at the level of
detail required for a presentation in conformity with generally accepted accounting
principles. Accordingly, such information should be read in conjunction with the City's
financial statements for the year ended June 30, 2024, from which the summarized
information was derived.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(47)
NOTE 2 CASH AND INVESTMENTS
Cash and investments are reported as follows:
Statement of Net Position:
Cash and Investments 184,451,972$
Cash and Investments with Fiscal Agent 30,711
Statement of Fiduciary Net Position:
Cash and Investments 253,253
Total Cash and Investments 184,735,936$
Cash and investments at June 30, 2025, consisted of the following:
Petty Cash on Hand 52,200$
Demand Deposits 39,460,156
Investments 145,223,580
Total Cash and Investments 184,735,936$
Investments Authorized by the California Government Code and the City of Costa
Mesa’s Investment Policy
The table below identifies investment types that are authorized for the City by the California
Government Code and investment policies of the City. The table also identifies certain
provisions of the California Government Code (or the City’s investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This
table does not address investments of debt proceeds held by bond trustee that are
governed by the provisions of debt agreements of the City, rather than the general
provisions of the California Government Code or the City’s investment policy.
Maximum Percentage of Investment in
Authorized Investments Maturity* Portfolio* One Issuer*
U.S. Treasury Securities 5 years None None
Federal Agency Securities 5 years None 35%
Municipal Securities 5 years None 5%
Banker's Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 5%
Federally Insured Time Deposit 5 years None None
Nonnegotiable Certificates of Deposit 5 years 20% 5%
Certificate of Deposit Placement Service 5 years 30% None
Negotiable Certificates of Deposit 5 years 30% 5%
Repurchase Agreements 1 year 30% None
Medium-Term Corporate Notes 5 years 30% 5%
Money Market Mutual Funds n/a 20% 10%
Asset Backed Securities 5 years 20% 5%
County Pooled Investment Funds n/a 35% None
Local Agency Investment Fund n/a None None
Supranational Securities 5 years 15% 5%
* Based on state law requirements or investment policy requirements, whichever is more restrictive.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(48)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
City’s investment policy. The table below identifies the investment types that are authorized
for investments held by bond trustees. The table also identifies certain provisions of these
debt agreements that address interest rate risk, credit risk, and concentration of credit risk
Generally, the following investment types are authorized by the City’s debt agreements:
Maximum Maximum
Maximum Percentage Investment in
Authorized Investments Maturity Portfolio One Issuer
U. S. Treasury Securities None None None
Federal Agency Securities 1 year None None
Banker's Acceptances 30 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds None None None
Investment Agreements None None None
Interest Bearing Time Deposits 30 days None None
Repurchase Agreements 270 days None None
Local Agency Investment Fund None None None
State Obligations None None None
Pre-Funded Municipal Obligations None None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. One of the ways that the City
manages its exposure to interest rate risk is by purchasing a combination of shorter term
and longer-term investments, and by timing cash flows from maturities so that a portion of
the portfolio is maturing or coming close to maturity evenly over time as necessary to
provide the cash flow and liquidity needed for operations. Information about the sensitivity of
the fair values of the City’s investments (including investments held by bond trustee) to
market interest rate fluctuations is provided by the following table that shows the distribution
of the City’s investments by maturity:
12 Months 13 to 24 2 to 60
Investment Type or Less Months Months Total
Federal Agency Securities 3,432,723$ -$ 5,595,167$ 9,027,890$
State Investment Pool (LAIF)75,074,322 - - 75,074,322
U.S. Treasury Securities 1,164,656 4,113,795 28,679,293 33,957,744
Medium-Term Corporate Notes 1,408,471 3,081,573 12,276,552 16,766,596
Asset Backed Securities 20,146 307,332 7,169,063 7,496,541
Money Market Mutual Funds 807,126 - - 807,126
PARS Section 115 Trust:-
Pooled Balanced Index Plus 2,092,360 - - 2,092,360
Held by Trustee:
Money Market Mutual Funds 1,001 - - 1,001
Total 84,000,805$ 7,502,700$ 53,720,075$ 145,223,580$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(49)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
The City (including investments held by bond trustees) held no investments that were highly
sensitive to interest rate fluctuations (to a greater degree than already indicated in the
information provided above).
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required by
(where applicable) the California Government Code, the City’s investment policy, or debt
agreements, and the actual rating as of year-end for each investment type:
Minimum
Investment Type Legal Rating AAA AA A Not Rated Total
Federal Agency Securities n/a -$ 9,027,890$ -$-$9,027,890$
U.S. Treasury Securities*n/a -- - 33,957,744 33,957,744
Medium-Term Corporate Notes A -3,743,106 13,023,490 - 16,766,596
State Investment Pool (LAIF)n/a --- 75,074,322 75,074,322
Asset Backed Securities AA 7,496,541 - - 7,496,541
Money Market Mutual Funds AAA 807,126 - - - 807,126
PARS Section 115 Trust:
Pooled Balanced Index Plus n/a - - - 2,092,360 2,092,360
Held by Trustee:
Market Mutual Funds AAA 1,001 - - - 1,001
Total 8,304,668$ 12,770,996$ 13,023,490$ 111,124,426$ 145,223,580$
* Not required to be rated.
GASB requires the disclosure of more than 5% total investments with a single issuer. At
June 30, 2025, there were no investments in any single issuer exceeded 5%.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the City’s investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits
made by the state or local governmental units by pledging securities in an undivided
collateral pool held by a depository regulated under state law (unless so waived by the
governmental unit).
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(50)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk (Continued)
The market value of the pledged securities in the collateral pool must equal at least
110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of the secured public deposits.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the City’s investment in this pool is
reported in the accompanying financial statements at amounts based upon the City’s pro-
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Investment in Public Agency Retirement Services
The City is a voluntary participant in the Public Agency Retirement Services (PARS). In
2021, the City funded an Internal Revenue Services Section 115 irrevocable trust with
PARS for pension and OPEB benefits. The trust account allows more control and flexibility
in investment allocations compared to the City’s portfolio which is restricted by state
regulations to fixed income instruments. OPEB and Pension trust fund assets are held on
behalf of the City by PARS. The City provides investment direction and determines the
amount and timing of disbursements of PARS trust fund assets.
Fair Value Measurements
Fair value measurements for the year ended June 30, 2025, are as follows:
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Federal Agency Securities -$ 9,027,890$ -$ 9,027,890$
U.S. Treasury Securities - 33,957,744 - 33,957,744
Medium-Term Corporate Notes - 16,766,596 - 16,766,596
Asset Backed Securities - 7,496,541 - 7,496,541
Investments Measured
at Fair Value -$ 67,248,771$ -$ 67,248,771
State Investment Pool (LAIF)*75,074,322
Money Market Mutual Funds*807,126
PARS Section 115 Trust
Pooled Balanced Index Plus*2,092,360
Held by Trustee:
Money Market Mutual Funds*1,001
Total Investment
Portfolio 145,223,580$
*Not subject to fair value categorization.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(51)
NOTE 3 INTERFUND RECEIVABLES AND PAYABLES
Interfund receivable and payable balances at June 30, 2025, are as follows:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds 181,028$
All receivables resulted from short-term borrowing to cover negative cash balances.
NOTE 4 TRANSFERS IN AND OUT
Transfers in and out for the year ended June 30, 2025, are as follows:
Transfers Out Transfers In Total
General Fund Capital Improvements Fund 3,949,994$ (a1)
General Fund Nonmajor Governmental Funds 4,042,220 (a2 to a3)
General Fund Internal Service Funds 2,856,000 (a4)
American Rescue Plan Act Nonmajor Governmental Funds 2,925,504 (b1 to b2)
Nonmajor Governmental Funds Nonmajor Governmental Funds 203,717 (c)
Total 13,977,435$
(a)The General Fund transferred the following:
1.$3,949,994 to the Capital Improvements Capital Projects Fund for capital
improvement projects;
2.$2,777,227 to the Financing Authority Debt Service Fund for debt service payments;
3.$1,264,993 to the Housing Authority for subsidy of homeless program costs;
4.$2,856,000 to the Internal Service Funds for pursuant to the Municipal Code’s 1.5%
transfer to the Information Technology
(b)The American Rescue Plan Act Fund transferred the following:
1.$454,308 to the Housing Authority for tenant based rental assistance
2.$2,471,196 to the Housing Asset Trust Fund for affordable housing.
(c)The Housing Asset Trust Fund transferred $203,717 to the Housing Authority Fund for
tenant relocation assistance.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(52)
NOTE 5 LOANS RECEIVABLE
The City’s loans receivable at June 30, 2025, by loan program are as follows:
HOME Program 2,393,754$
Community Development Loan Program 152,795
Rental Rehabilitation Program 200,477
First Time Home Buyer Program 1,338,476
Single Family Rehabilitation Program 142,500
Neighborhood Stabilization Program 115,250
Motel 6 Construction 850,000
Travelodge North Housing Project 2,100,000
Capital Improvements Loans 231,760
Other Programs 509,272
Total 8,034,284
Less: Allowance for Uncollectible Loans (3,194,849)
Loans Receivable, Net 4,839,435$
Allowance for uncollectible accounts are established for various loans.
NOTE 6 LEASES RECEIVABLE
Land
On July 1, 1985, the City entered into a 55-year ground lease agreement with Costa Mesa
Family Village for use of three parcels of City-owned land. The lease began in July 1985 and
will end in October 2039. The lessee is required to make annual fixed payments ranging
from $6,750 to $13,500 with an interest rate of 2.015%. As of June 30, 2025, the lease
receivable is $1,273,732, and deferred inflows of resources is $1,232,268. The City
recognized $91,279 of lease revenue and interest revenue of $26,694 during the fiscal year.
Buildings and Infrastructure
The City entered into three leases for use of building and infrastructure assets with lease
terms of five years with the option to extend. The lessee is required to make annual fixed
payments ranging from $27,376 to $42,083 with interest rates of 2.015%. As of June 30,
2025, the lease receivable is $1,896,960, and deferred inflows of resources is $1,700,922.
The City recognized $271,066 of lease revenue and interest revenue of $42,522 during the
fiscal year.
The future principal and interest payments as of June 30, 2025, are as follows:
Year Ending June 30,Principal Interest Total
2026 254,277$ 63,264$ 317,541$
2027 199,667 58,129 257,796
2028 213,774 54,093 267,867
2029 353,679 69,133 422,812
2030 - 2034 1,111,110 165,841 1,276,951
2035 - 2039 1,007,762 58,382 1,066,144
2040 - 2044 30,423 613 31,036
Total 3,170,692$ 469,455$ 3,640,147$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(53)
NOTE 7 CAPITAL ASSETS
A summary of changes in capital assets is as follows:
Balance at Balance at
July 1, 2024 Additions Deletions Transfers June 30, 2025
Capital Assets, Not Being Depreciated:
Land 34,579,306$ -$ -$ -$ 34,579,306$
Land Rights Related to Streets 29,821,224 -- - 29,821,224
Construction-in-Progress 27,432,761 18,531,380 - (31,363,463) 14,600,678
Total Capital Assets, Not Being Depreciated 91,833,291 18,531,380 - (31,363,463) 79,001,208
Capital Assets, Being Depreciated/Amortized:
Building Improvements and Structures 125,768,378 - - 2,891,289 128,659,667
Landscaping and Sprinklers 10,076,675 - - - 10,076,675
Automotive Equipment 23,173,608 2,904,178 (588,350) - 25,489,436
Office Furniture 954,586 - - - 954,586
Office Machines 8,748,325 - - - 8,748,325
Other Equipment 21,776,754 1,910,635 - (1,909,245) 21,778,144
Intangible Assets 1,714,343 - - 1,932,537 3,646,880
Right-to-Use Lease Assets 1,434,585 -(365,808) - 1,068,777
Right-to-Use Subscription Assets 193,154 1,036,210 (193,154) - 1,036,210
Park System and Facilities 23,108,912 - - 3,602,533 26,711,445
Infrastructure - Roads 301,279,835 - - 24,846,349 326,126,184
Infrastructure - Storm Drains 101,566,209 - - - 101,566,209
Total Capital Assets, Being
Depreciated/Amortized 619,795,364 5,851,023 (1,147,312) 31,363,463 655,862,538
Less: Accumulated Depreciation/Amortization:
Building Improvements and Structures (61,303,864) (4,658,841) - - (65,962,705)
Landscaping and Sprinklers (9,668,840) (156,182) - - (9,825,022)
Automotive Equipment (11,311,698) (1,483,142) 529,515 - (12,265,325)
Office Furniture (760,023) (51,015) - - (811,038)
Office Machines (8,378,172) (239,118) - - (8,617,290)
Other Equipment (11,818,497) (1,422,360) - - (13,240,857)
Intangible Assets (1,646,766) (14,472) - - (1,661,238)
Right-to-Use Lease Assets (746,687) (229,929) 365,808 - (610,808)
Right-to-Use Subscription Assets (193,154) (287,836) 193,154 - (287,836)
Park System and Facilities (15,728,265) (900,570) - - (16,628,835)
Infrastructure - Roads (212,767,690) (7,330,188) 177,927 - (219,919,951)
Infrastructure - Storm Drains (90,651,509) (1,402,448) - - (92,053,957)
Total Accumulated Depreciation/
Amortization (424,975,165) (18,176,101) 1,266,404 - (441,884,862)
Total Capital Assets, Being
Depreciated/Amortized, Net 194,820,199 (12,325,078) 119,092 31,363,463 213,977,676
Total Capital Assets, Net 286,653,490$ 6,206,302$ 119,092$ -$ 292,978,884$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(54)
NOTE 7 CAPITAL ASSETS (CONTINUED)
Depreciation expense is charged to the following functions for the year ended June 30,
2025:
Governmental Activities:
General Government 2,936,227$
Protection of Persons and Property 2,407,205
Community Programs 1,387,468
Public Services 11,445,201
Total Depreciation/Amortization Expense -
Governmental Activities 18,176,101$
The City has active construction projects as of June 30, 2025. The significant projects
include the following:
Total Spent Remaining
Construction Project Budget to Date Commitment
Sunflower Avenue Rehabilitation 2,570,782$ -$ 2,570,782$
Fairview Road Rehabilitation 2,780,829 - 2,780,829
Newport (Victoria/22nd to 19th)1,178,820 94,496 1,084,324
SB Newport Boulevard Improvement
(Mesa/Victoria)1,965,652 97,040 1,868,612
Newport Boulevard NB 22nd Bristol
SB Bristol Mesa 2,134,145 94,186 2,039,959
TeWinkle Skate Park Expansion 2,132,158 91,724 2,040,434
TeWinkle Park Lakes Repairs 2,132,475 143,553 1,988,922
Mesa Restoration/Cultural Restoration 2,000,000 92,313 1,907,687
Stabilize/Restore Fairview Park 2,000,000 36,331 1,963,669
Total 18,894,861$ 649,643$ 18,245,218$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(55)
NOTE 8 CHANGES IN LONG-TERM LIABILITIES
A summary of changes in long-term liabilities in primary government for the year ended
June 30, 2025, is as follows:
Balance at Balance at Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year
Bonds Payable:
Financing Authority
2017 Lease Revenue
Bonds 19,360,000$ -$ (2,015,000)$ 17,345,000$ 2,115,000$
Unamortized Premium 2,696,745 -(147,767) 2,548,978 147,767
Total Bonds Payable 22,056,745 -(2,162,767) 19,893,978 2,262,767
Other Liabilities:
Lease Payable - Facility 82,489 -(82,489) - -
Lease Payable - Warehouse 657,778 -(152,052) 505,726 160,099
Loans Payable 66,693 -(15,391) 51,302 15,391
SBITA Payable - Microsoft 3,575 1,036,210 (344,794) 694,991 344,312
Claims Payable 14,960,567 2,528,677 (1,134,429) 16,354,815 1,293,969
Fire Truck Note Payable 1,058,422 -(143,086) 915,336 145,710
Mobile Command
Note Payable 1,674,377 -(193,810) 1,480,567 198,045
Police Armored Vehicle
Finance Lease 325,273 -(77,275) 247,998 79,910
Ambulance Note Payable 682,804 -(161,586) 521,218 167,516
Pumpers, Water, and
Asphalt Trucks
Finance Lease 2,275,000 -(288,982) 1,986,018 300,230
Employee Leave
Benefits Payable (1) (2)8,767,333 1,811,696 - 10,579,029 4,606,428
Total Other Liabilities 30,554,311 5,376,583 (2,593,894) 33,337,000 7,311,610
Total Long-Term
Liabilities 52,611,056$ 5,376,583$ (4,756,661)$ 53,230,978$ 9,574,377$
(1)The beginning balance was restated due to the implementation of GASB Statement No. 101, See
Note 18.
(2)The change in the compensated absence liability is presented as a net change.
NOTE 9 LONG-TERM LIABILITIES
Costa Mesa Financing Authority Bonds - 2017 Lease Revenue Bonds
On October 1, 2017, the Costa Mesa Financing Authority issued $29,735,000 of 2017 Lease
Revenue Bonds to finance certain capital improvements of the City of Costa Mesa and to
advance refund $16,765,000 of outstanding Costa Mesa Public Financing Authority 2007
Certificates of Participation (2007 Certificates). The bond issue also included a bond
premium of $3,694,172. The bonds mature from October 1, 2018 through October 1, 2042 in
annual installments ranging from $570,000 to $2,220,000. Interest is payable semi-annually
on April 1 and October 1 of each year, commencing on April 1, 2018 at a rate ranging from
2% to 5%. As of June 30, 2025, the principal outstanding is $17,345,000 and the
unamortized bond premium balance is $2,548,978.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(56)
NOTE 9 LONG-TERM LIABILITIES (CONTINUED)
Costa Mesa Financing Authority Bonds - 2017 Lease Revenue Bonds (Continued)
Bond proceeds of $14,530,520, along with $2,302,225 of 2007 Certificates sinking fund
monies, were used to purchase U.S. government securities. Those securities were
deposited in an irrevocable trust with an escrow agent to provide for all future debt service
payments on the 2007 Certificates. As a result, the 2007 Certificates are considered to be
defeased and the liability for those certificates have been removed from the government-
wide Statement of Net Position.
The annual debt service requirements for the bonds as of June 30, 2025, are as follows:
Year Ending June 30,Principal Interest Total
2026 2,115,000$ 677,925$ 2,792,925$
2027 2,220,000 569,550 2,789,550
2028 570,000 499,800 1,069,800
2029 600,000 470,550 1,070,550
2030 630,000 439,800 1,069,800
2031 - 2035 3,660,000 1,680,250 5,340,250
2036 - 2040 4,495,000 865,094 5,360,094
2041 - 2043 3,055,000 151,044 3,206,044
Total 17,345,000$ 5,354,013$ 22,699,013$
Leases Payable
Community Service Facility
On July 1, 2012, the City entered into a 13-year lease agreement for the use of a
community service facility. The total lease liability is $309,105 at 2.20% interest. The
lease ended during the year.
Warehouse
On May 17, 2021, the City entered into a seven-year lease agreement for the use of a
warehouse. The total lease liability is $1,068,577 at 2.015% interest. As of June 30,
2025, the value of the lease liability is $505,726. The City is required to make monthly
principal and interest payments of $12,500. The future principal and interest payments
as of June 30, 2025, are as follows:
Year Ending June 30,Principal Interest Total
2026 160,099$ 8,717$ 168,816$
2027 168,466 5,414 173,880
2028 177,161 1,939 179,100
Total 505,726$ 16,070$ 521,796$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(57)
NOTE 9 LONG-TERM LIABILITIES (CONTINUED)
Subscription-Based Information Technology Arrangements (SBITAs)
Microsoft – Dell Technologies
On September 1, 2024, the City entered into a three-year subscription-based IT
arrangement for the use of software. The total lease liability is $1,036,210 at 1.834%
interest. As of June 30, 2025, the value of the lease liability is $694,991. The City is
required to make annually principal and interest payments of $350,679. The future
principal and interest payments as of June 30, 2025, are as follows:
Year Ending June 30,Principal Interest Total
2026 344,312 6,367 350,679$
2027 350,679 - 350,679
Total 694,991$ 6,367$ 701,358$
Loans Payable – SCE On-Bill Financing (OBF) Loans
During the year ended June 30, 2019, the City entered into loan agreements with Southern
California Edison to finance certain street lighting projects. The total amount of the loans
was $153,914. The loan’s term is 10 years with monthly payments of approximately $1,282.
The loans bear no interest.
The annual debt service requirements for loans payable as of June 30, 2025, are as follows:
Year Ending June 30,Amount
2026 15,391$
2027 15,391
2028 15,391
2029 5,129
Total 51,302$
Firetruck Note Payable
On February 25, 2021, the City entered into a Master Lease – Purchase Agreement and
financed the purchase of a Pierce Arrow XT Firetruck for $1,472,402. The note matures
annually on March 5th of each year with annual payments of $162,497. The note bears an
interest rate of 1.8340% per annum.
The annual debt service requirements for the note as of June 30, 2025, is as follows:
Year Ending June 30,Principal Interest Total
2026 145,710$ 16,787$ 162,497$
2027 148,382 14,115 162,497
2028 151,103 11,394 162,497
2029 153,875 8,622 162,497
2030 156,697 5,800 162,497
2031 159,569 2,927 162,496
Total 915,336$ 59,645$ 974,981$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(58)
NOTE 9 LONG-TERM LIABILITIES (CONTINUED)
Mobile Command Center Note Payable
On January 7, 2022, the City entered into a Master Lease – Purchase Agreement and
financed the purchase of a Mobile Command Center and a Pumping Engine for $2,049,652.
The note matures annually on March 7th of each year with annual payments of $230,395.
The note bears an interest rate of 2.0150% per annum. The annual debt service
requirements for the note as of June 30, 2025, is as follows:
Year Ending June 30,Principal Interest Total
2026 198,045$ 32,350$ 230,395$
2027 202,372 28,023 230,395
2028 206,794 23,601 230,395
2029 211,312 19,083 230,395
2030 215,929 14,466 230,395
2031 - 2032 446,115 104,674 550,789
Total 1,480,567$ 222,197$ 1,702,764$
Police Armored Vehicle Note Payable
On August 15, 2022, the City entered in a Master Lease – Purchase Agreement and
financed the purchase of a Police Armored Vehicle for $400,000. The lease payment is due
annually on August 17th of each year with annual payments of $88,367. The note bears an
interest rate of 3.410% per annum.
The annual debt service requirements for the finance lease as of June 30, 2025, is as
follows:
Year Ending June 30,Principal Interest Total
2026 79,910$ 8,457$ 88,367$
2027 82,635 5,732 88,367
2028 85,453 2,913 88,366
Total 247,998$ 17,102$ 265,100$
Ambulances Note Payable
On August 16, 2022, the City entered in a Master Lease – Purchase Agreement and
financed the purchase of four CCL150 Type III Ambulances for $841,068. The lease
payment is due annually on September 16th of each year with annual payments of
$186,645. The note bears an interest rate of 3.670% per annum.
The annual debt service requirements for the finance lease as of June 30, 2025, is as
follows:
Year Ending June 30,Principal Interest Total
2026 167,516$ 19,129$ 186,645$
2027 173,664 12,981 186,645
2028 180,038 6,605 186,643
Total 521,218$ 38,715$ 559,933$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(59)
NOTE 9 LONG-TERM LIABILITIES (CONTINUED)
Pumpers, Water, and Asphalt Trucks Finance Lease
On July 28, 2023, the City entered into a Master Lease – Purchase Agreement and financed
the purchase of pumpers, water truck street cleaners, asphalt roller truck, and other
essential equipment and attachments for $2,275,000. The lease payment is due annually on
July 28th of each year with annual payments of $377,526. The note bears an interest rate of
3.892% per annum.
The annual debt service requirements for the finance lease as of June 30, 2025, is as
follows:
Year Ending June 30,Principal Interest Total
2026 300,230$ 77,296$ 377,526$
2027 311,915 65,611 377,526
2028 324,055 53,471 377,526
2029 336,666 40,890 377,556
2030 349,770 27,756 377,526
2031 363,382 14,143 377,525
Total 1,986,018$ 279,167$ 2,265,185$
NOTE 10 FUND BALANCES
Fund balances consisted of the following at June 30, 2025:
American
Government Gas Tax Rescue Plan Measure Capital Nonmajor
General Fund Grants Fund Act Fund "M2" Improvements Funds
Nonspendable:
Prepaid Items 809,471$ -$ -$ -$ -$ -$ -$
Inventories 73,601 -- - - - 28
Restricted:
Pension and OPEB 2,092,360 - - - - - -
Protection of Persons and - - - - - - -
Property - - - - - - 1,360,808
Community Programs - - - 502,739 - - 10,203,576
Public Services (1)-579,799 24,769,525 - 5,719,590 - 5,190,420
Debt Service --- - - - 1,001
Committed:
Declared Disasters (2) 14,125,000 - - - - - -
Self-Insurance (3)2,000,000 - - - - - -
Economic Reserves 9,000,000 - - - - - -
Assigned:
Compensated Absences 5,982,021 - - - - - -
Police Retirement 1%1,572,306
Supplemental - - - - - - -
Workers' Compensation 2,000,000 - - - - - -
Facilities Reserve 2,000,000 - - - - - -
Strategic Plan Projects 2,000,000 - - - - - -
Protection of Persons and
Property - - - - - - 700,807
Public Services - - - - - 33,467,728 10,148,093
Unassigned 19,307,045 - - - - - (41,269)
Total Fund Balance 60,961,804$ 579,799$ 24,769,525$ 502,739$ 5,719,590$ 33,467,728$ 27,563,464$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(60)
NOTE 10 FUND BALANCES (CONTINUED)
1. Restricted fund balances in the Public Services category consist of fund balances in the Gas Tax,
Air Quality Improvement, Lions Park Capital Improvements, and Measure M2 Construction funds.
Revenues received in these funds are legally restricted for specific purposes, such as
transportation and facility related capital projects.
2.The fund balance committed for declared disasters was adopted by Ordinance No. 91-20 and
Municipal Code Section 2-206 to provide required funding as a result of a declared emergency by
the City Council for an unanticipated but urgent event threatening the public health, safety, and
welfare of the City. Any fund balance utilized has to be replenished.
3. The fund balance committed for self-insurance was codified in the Ordinance No. 96-14 and City
Municipal Code Section 2-154 to provide a self-insurance reserve to be used to pay actual losses
not covered by insurance policies or insurance pools. Any fund balance utilized has to be
replenished.
The following funds had deficits at June 30, 2025:
Nonmajor Governmental Funds
Special Revenue Funds
Supplemental Law Enforcement Services 34,112$
Office of Traffic Safety 7,157
The deficit fund balances will be eliminated through receipts of future revenues.
NOTE 11 DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plans
Employees of the City are members of the California Public Employees’ Retirement
System (CalPERS), the cost of which is paid by the City. The information below includes
the aggregate total pension plan related items:
Miscellaneous Police Safety Fire Safety 1%Total
Net Pension Liability (108,315,359)$ (138,218,500)$ (89,256,235)$ (335,790,094)$
1% Supplemental Liability - - - (1,385,976) (1,385,976)
Deferred Outflows of
Resources - Pension 21,031,028 25,808,218 29,297,904 - 76,137,150
Deferred Inflows of
Resources - Pension - (1,221,923) (4,401,104) - (5,623,027)
Pension Expense (Credit)15,627,318 17,063,159 15,431,662 (5,650) 48,116,489
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(61)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued)
Below are descriptions of the retirement plans along with selected information regarding
benefits, contributions, liabilities, and actuarial assumptions.
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the
City’s separate Miscellaneous and Police Safety Plans, agent multiple-employer defined
benefit pension plans and the Fire Safety cost sharing plans. The plans are administered
by CalPERS, which acts as a common investment and administrative agent for its
participating member employers. Benefit provisions under the Plans are established by
State statute and City resolution. CalPERS issues publicly available reports that include
a full description of the pension plans regarding benefit provisions, assumptions and
membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full-
time employment. Members with five years of total service are eligible to retire at age 50
to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at
65 formula, eligibility for service retirement is age 55 with at least five years of service.
Public Employees’ Pension Reform Act of 2013 (PEPRA) miscellaneous members
become eligible for service retirement upon attainment of age 52 with at least five years
of service. All members are eligible for nonduty disability benefits after five years of
service.
The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor
Benefit, or the Optional Settlement 2W Death Benefit.
Safety members can receive a special death benefit if the member dies while actively
employed and the death is job-related. Fire members may receive the alternate death
benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies
while actively employed and has at least 20 years of total CalPERS service. The cost of
living adjustments for each plan are applied as specified by the Public Employees’
Retirement Law.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(62)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued)
Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as
follows:
Prior to On or After On or After
Hire Date March 11, 2012 March 11, 2012 January 1, 2013
Benefit Formula 2.5% at 55 2.0% at 60 2.0% at 62
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service
Benefit Payments monthly for life monthly for life monthly for life
Retirement Age 50 - 55 50 - 63 52 - 67
Monthly Benefits, as a Percent of
Eligible Compensation 2.0% - 2.5% 1.092% - 2.418% 1.0% - 2.5%
Required Employee Contribution Rates 10.47%7.5%8.50%
Required Employer Contribution Rates 7.94%10.41%10.41%
Miscellaneous (Agent Multiple-Employer)
Prior to On or After
Hire Date March 11, 2012 January 1, 2013
Benefit Formula 3.0% at 55 2.0% at 60
Benefit Vesting Schedule 5 years of service 5 years of service
Benefit Payments monthly for life monthly for life
Retirement Age 50 50 - 63
Monthly Benefits, as a Percent of
Eligible Compensation 3.0% 2.0% - 2.7%
Required Employee Contribution Rates 14.0%14.0%
Required Employer Contribution Rates 17.54%22.54%
Police Safety (Agent Multiple-Employer)
Prior to On or After On or After
Hire Date December 30, 2012 December 30, 2012 January 1, 2013
Benefit Formula 3.0% at 50 2.0% at 50 2.7% at 57
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service
Benefit Payments monthly for life monthly for life monthly for life
Retirement Age 50 50 - 55 50 - 57
Monthly Benefits, as a Percent of
Eligible Compensation 3.0% 2.0% - 2.7% 2.0% - 2.7%
Required Employee Contribution Rates 14.0%9.0%13.75%
Required Employer Contribution Rates 24.30%20.09%13.76%
Fire Safety (Cost Sharing Multiple-Employer)
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(63)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued)
Employees Covered
At the June 30, 1899 measurement date, the following employees were covered by each
plan’s benefit terms:
Miscellaneous Police Safety Fire Safety
Inactive Employees or Beneficiaries
Currently Receiving Benefits 652 225 132
Inactive Employees Entitled to but
not yet Receiving Benefits 866 74 34
Active Employees 412 136 82
Total 1,930 435 248
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers are determined on an annual basis
by the actuary and shall be effective on the July 1 following notice of a change in the
rate. The total plan contributions are determined through CalPERS’ annual actuarial
valuation process. The actuarially determined rate is the estimated amount necessary to
finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. The employer is required to contribute
the difference between the actuarially determined rate and the contribution rate of
employees. Employer contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy plan member contribution requirements as
identified by the pension plan terms are classified as plan member contributions. For the
year ended June 30, 2025, the employer contributions for the Miscellaneous, Police
Safety and Fire Safety were $14,236,977, $14,905,682 and $10,645,047, respectively
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability,
less the pension plan’s fiduciary net position. The net pension liability of each Plan is
measured as of June 30, 1899, based on an annual actuarial valuation as of June 30,
1899 and rolled forward to June 30, 1899 using standard update procedures. A
summary of principal assumptions and methods used to determine the net pension
liability is shown below.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the three CalPERS Plans, the June 30, 1899 valuation was rolled forward to
determine the June 30, 1899 pension liability, based on the following actuarial methods
and assumptions:
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(64)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Actuarial Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal in accordance with the
requirements of GASB 68
Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Investment Rate of Return 6.90%
Mortality Rate Table1 Derived using CalPERS membership data
for all funds
Post-Retirement Benefit The lesser of contract COLA or 2.30% until
Increase Purchasing Power Protection Allowance Floor on
Purchasing Power applies, 2.30% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of
mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial
Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of
Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer
to the 2021 experience study report from November 2021 that can be found on the CalPERS
website.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection
of cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that contributions
from employers will be made at the 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 on investment was applied to all
periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined
using a building-block method in which expected future real rates of return (expected
returns, net of pension plan investment expense and inflation) are developed for each
major asset class.
In determining the long-term expected rate of return, CalPERS took into account both
short-term and long-term market return expectations. Using historical returns of all of the
funds’ asset classes, expected compound (geometric) returns were calculated over the
next 20 years using a building-block approach. The expected rate of return was then
adjusted to account for assumed administrative expenses of 10 Basis points.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(65)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Discount Rate (Continued)
The expected real rate of return by asset class are as follows:
Assumed
Asset Real Return
Asset Class1 Allocation Years 1-10 1,2
Global Equity - Cap-Weighted 30.00 %4.54 %
Global Equity - Non-Cap-Weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-Backed Securities 0.05 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00)(0.59)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.
Changes in Net Pension Liability
The changes in the net pension liability for the Miscellaneous (Agent Multiple Employer)
Plan, using the measurement date of June 30, 1899, are as follows:
(A)(B)(A - B)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability (Asset)
Balances - June 30, 2023 335,445,836$ 222,698,544$ 112,747,292$
Changes in the Year:
Service Cost 5,721,926 - 5,721,926
Interest on Total Pension Liability 22,953,564 - 22,953,564
Difference Between Expected
and Actual Experience 4,199,393 - 4,199,393
Contributions - Employer - 12,798,677 (12,798,677)
Contributions - Employees - 3,282,484 (3,282,484)
Net Investment Income - 21,406,865 (21,406,865)
Administrative Expenses - (181,210) 181,210
Benefit Payments, Including
Refunds of Employee
Contributions (19,691,688) (19,691,688) -
Net Changes 13,183,195 17,615,128 (4,431,933)
Balances - June 30, 2024 348,629,031$ 240,313,672$ 108,315,359$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(66)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Changes in Net Pension Liability
The changes in the net pension liability for the Police Safety (Agent Multiple Employer)
Plan, using the measurement date of June 30, 1899, are as follows:
(A)(B)(A - B)
Total Plan Net
Pension Fiduciary Position
Liability Net Position Liability (Asset)
Balances - June 30, 2023 368,714,588$ 225,479,353$ 143,235,235$
Changes in the Year:
Service Cost 5,777,255 - 5,777,255
Interest on Total Pension Liability 25,115,301 - 25,115,301
Difference Between Expected
and Actual Experience 2,338,711 - 2,338,711
Net Plan to Plan Resource
Contributions - Employer - 13,718,693 (13,718,693)
Contributions - Employees - 2,948,851 (2,948,851)
Net Investment Income - 21,763,931 (21,763,931)
Administrative Expenses - (183,473) 183,473
Benefit Payments, Including
Refunds of Employee
Contributions (19,904,122) (19,904,122) -
Net Changes 13,327,145 18,343,880 (5,016,735)
Balances - June 30, 2024 382,041,733$ 243,823,233$ 138,218,500$
Proportionate Share of the Net Pension Liability for the Fire Safety Plan
As of June 30, 2025, the City reported net pension liabilities for its proportionate share of
the net pension liability of the Fire Safety Plan as follows:
Share of Net
Pension Liability
Balance at June 30, 2023 91,243,941$
Balance at June 30, 2024 89,256,235
Net Changes During 2023 - 2024 (1,987,706)$
The City’s proportionate share of the net pension liability was based on a projection of
the City’s long-term share of contributions to the pension plans relative to the projected
contributions of all participating employers, actuarially determined. The City’s
proportionate share of the net pension liability for this plan as of the measurement dates
of June 30, 2023 and 2024, was as follows:
Fire Safety
Proportion - June 30, 2023 1.22067%
Proportion - June 30, 2024 1.22423%
Change - Increase (Decrease)0.00356%
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(67)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s net pension liability for each Plan, calculated using the
Plan’s discount rate, as well as what the City’s net pension liability would be if it were
calculated using a discount rate that is one percentage point lower or one percentage
point higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(5.90%)(6.90%)(7.90%)
Net Pension Liability - Miscellaneous 153,242,912$ 108,315,359$ 71,378,853$
Current
1% Decrease Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Net Pension Liability - Police Safety 189,911,674$ 138,218,500$ 96,028,482$
Current
1% Decrease Discount Rate 1% Increase
(5.90%)(6.90%)(7.90%)
Net Pension Liability - Fire Safety 121,378,061$ 89,256,235$ 62,985,098$
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
Amortization of Deferred Outflows and Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and
fiduciary net position are recognized in pension expense systematically over time. The
first amortized amounts are recognized in pension expense for the year the gain or loss
occurs. The remaining amounts are categorized as deferred outflows and deferred
inflows of resources related to pensions and are to be recognized in future pension
expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between projected 5-year straight-line amortization
and actual earnings on pension
plan investments
All other amounts Straight-line amortization over the
expected average remaining service
lifetime (EARSL) of all members that are
provided with benefits (active, inactive,
and retired) as of the beginning of the
measurement period
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(68)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date 14,236,977$ -$
Differences Between Expected and Actual Experience 3,516,056 -
Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments 3,277,995 -
Total 21,031,028$ -$
Miscellaneous
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date 14,905,682$ -$
Differences Between Expected and Actual Experience 4,522,746 (1,221,923)
Change in Assumptions 3,174,418 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 3,205,372 -
Total 25,808,218$ (1,221,923)$
Police Safety
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date 10,645,047$ -$
Differences Between Expected and Actual Experience 7,284,102 (236,837)
Change in Assumptions 2,199,090 -
Change in Employer's Proportion - (4,164,267)
Net Differences Between Projected and Actual
Earnings on Plan Investments 4,314,240 -
Differences Between Employer's Contributions and
Change in Employer's Proportion 4,855,425 -
Total 29,297,904$ (4,401,104)$
Fire Safety
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(69)
NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Net Pension Liability (Continued)
At June 30, 2025, deferred outflows of resources in the amounts of $14,236,977,
$14,905,682, and $10,645,047 were related to contributions subsequent to the
measurement date for the Miscellaneous, Police Safety, and Fire Safety Plans,
respectively. They will be recognized as a reduction of the net pension liability in the
fiscal year ending June 30, 2026. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized as
pension expense as follows:
Year Ending June 30,Miscellaneous Police Safety Fire Safety
2026 2,222,893$ 3,498,111$ 5,060,633$
2027 6,789,821 7,887,482 10,550,953
2028 (979,106) (439,498) 116,305
2029 (1,239,557) (1,265,482) (1,476,138)
NOTE 12 POLICE 1% SUPPLEMENTAL RETIREMENT PLAN
A. General Information about the Pension Plan
Plan Description
The plan was effective on July 1, 1993 for sworn members of the City of Costa Mesa
Police Department. The plan was originally a 1% supplemental plan to the City’s 2%@50
benefit. Under the Retirement Plan for Safety Employees of the City of Costa Mesa, the
City joined CalPERS with 3%@50 Safety benefit as of December 31, 2000 and
transferred active members to CalPERS. Employees who retired prior to July 1, 1999
were not transferred to CalPERS.
The Police 1% Supplemental Retirement Plan is a single employer defined benefit plan.
This Plan currently has only retired participants as all active employees were transferred
to the CalPERS 3%@ 50 benefit plan. The number of participants at June 30, 2025 was
17.The average monthly benefit being paid is $931.33. The retirement benefit is 1% of
the highest 12-month earnings for credited services up to 25 years. Maximum benefit is
75% of the highest 12-month earnings for service retirement including all public plan
pension benefits but not including Social Security. The 75% is proportionately reduced
for less than 25 years of Costa Mesa Police Department service.
Contributions
The City has not adopted a funding policy for this supplemental retirement plan and
accordingly plan benefits impact financial resources as benefits are paid. As such, there
are no assets accumulated in a trust for the plan. For the year ended June 30, 2025, the
City paid $1,945,254 in form of insurance premiums for retiree health insurance and
implicit subsidy of $955,626 for a total contribution of $2,900,880.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(70)
NOTE 12 POLICE 1% SUPPLEMENTAL RETIREMENT PLAN (CONTINUED)
B. Pension Liability
The City’s pension liability for the Plan is measured as the total pension liability, as the
pension plan has no fiduciary net position. The pension liability of the Plan is measured
as of June 30, 2025, using an annual actuarial valuation as of June 30, 2025. A
summary of principal assumptions and methods used to determine the net pension
liability is shown below.
Actuarial Methods and Assumptions
The total pension liabilities in the June 30, 2025 actuarial valuations were determined
using the following actuarial assumptions:
Measurement Date June 30, 2025
Actuarial Assumptions:
Discount Rate 4.90% per annum. The discount rate is the average, rounded
to 5 basis points, of the range of 3 to 20-year municipal
bod rate indices: S&P Municipal Bond 20-Year High Grade
Rate Index, Bond Buyer 20-Bond GO Index, Fidelity GO AA
20-Year Bond Index.
Payroll Growth N/A; all participants have retied
Inflation Rate 2.75% per year
Cost Method Entry Age Normal as a level percentage of payroll
Employer Funding Policy Pay-as-you-go
Census Data Census information was provided by the Plan Sponsor
as of June 2025
Retirement Disability/
Turnover Rate N/A; all participants have retired
Mortality Rates are based on the 2021 CalPERS Experience Study
for Public Agency Police as shown below
Age Male Female Male Female
50 0.27 %0.20 %1.70 %1.44 %
60 0.58 0.46 2.71 1.96
70 1.33 1.00 4.00 2.91
80 4.37 3.40 7.94 6.11
90 14.54 11.09 16.61 14.40
100 36.20 31.58 36.20 31.58
110 100.00 100.00 100.00 100.00
Healthy Retirees
Non-Industrial
Disabled Retirees
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(71)
NOTE 12 POLICE 1% SUPPLEMENTAL RETIREMENT PLAN (CONTINUED)
B. Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 4.90%. There are no
assets accumulated in a trust, therefore the discount rate is the average, rounded to 5
basis points, of the range of three 20 year municipal bond rate indices as of June 30,
2025: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO
Index, Fidelity GO AA 20 Year Bond Index.
The discount rate changed from 4.05% as of June 30, 1899 to 4.90% as of June 30,
2025 measurement date.
C.Changes in the Pension Liability
Balance - June 30, 2024 1,572,306$
Changes in the Year:
Interest on the Total Pension Liability 60,020
Differences Between Actual Expected and
Actual Experience -
Changes in Assumptions (65,670)
Benefit Payments, Including Refunds of
Member Contributions (180,680)
Net Changes (186,330)
Balance - June 30, 2025 1,385,976$
Sensitivity of the Total Pension Liability to Changes in the Discount Rate
The following presents the total pension liability, calculated using the discount rate of
4.90%, as well as what the net pension liability would be if it were calculated using a
discount rate that is one percentage point lower or one percentage point higher than the
current rate.
Current
1% Decrease Discount Rate 1% Increase
(3.90%) (4.90%) (5.90%)
Net Pension Liability - Supplemental Plan 1,463,829$ 1,385,976$ 1,315,436$
D.Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions
For the fiscal year ended June 30, 2025, the City recognized pension credit of $5,650. At
June 30, 2025, the City did not report any deferred outflows/inflows of resources related
to the Police 1% Supplemental Retirement Plan.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(72)
NOTE 13 DEFINED CONTRIBUTION PLAN
On January 1, 2000, the City adopted a Defined Contribution Plan (Plan) for part-time
employees that work under 1,000 hours during the fiscal year and do not meet the eligibility
requirements to be enrolled in the California Public Employee Retirement System
(CalPERS). The Plan is administered by the Public Agency Retirement Services (PARS). As
of June 30, 2025, there were 186 active participants in the Plan. Both the City and
employees are required to each contribute 3.75% of gross wages. The City’s contribution to
the defined contribution plan for the year ended June 30, 2025 was $75,182.
NOTE 14 OTHER POST EMPLOYMENT BENEFITS PLAN (OPEB)
Plan Description
The City administers a single-employer defined benefit plan, which provides medical
insurance benefits to eligible retirees and their spouses in accordance with various labor
agreements. The plan covers employees hired before January 1, 2004 who retire directly
from the City with 10 years or more of City service. The City provides a contribution up to a
percentage of the lesser of $500 per month or the premium for the most popular medical
plan elected by the employees. The percentage varies by retirement date and years of City
service. For employees hired on or after January 1, 2004, the City will only pay for the
PEMHCA subsidy once they meet the definition of a retiree under CalPERS. The City
provides retiree life insurance of $1,000 for the retiree and $500 for the retiree’s spouse.
Employees Covered
As of the June 30, 1899 measurement date, the following current and former employees
were covered by the benefit terms under the plan:
Active Employees 641
Inactive Employees or Beneficiaries Currently
Receiving Benefits 409
Inactive Employees Entitled to but not yet
Receiving Benefits -
Total 1,050
Contributions
The contribution requirements of plan members and the City are established and may be
amended by the City Council. The contribution required to be made under the City Council
and labor agreement requirements is on a pay-as-you-go basis (i.e., as medical insurance
premiums become due). For the fiscal year ended June 30, 2025, the City contributed
$2,900,880 to the plan. The City has not established a trust for the purpose of holding
assets accumulated for plan benefits.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(73)
NOTE 14 OTHER POST EMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
Contributions (Continued)
The City’s total OPEB liability was measured as of June 30, 2024 by an actuarial valuation
based on the following actuarial methods and assumptions.
Discount Rate: 4.21% for accounting disclosure purposes. The rate is based on a yield
for 20-year tax-exempt general obligation municipal bonds with an average rating of
AA/Aa or higher (or equivalent quality on another rating scale). For the current valuation,
the discount rate was selected from the range of indices as shown in the table below:
As of 6/30/24
Bond Buyer Go 20 - Municipal Bond Index 3.93 %
S&P Municipal Bond 20-Year High Grade Rate Index 4.21 %
Fidelity 20-Year Go Municipal Bond Index 3.97 %
Bond Index Range 3.93% - 4.21%
Actual Index Used 4.21 %
Aggregate Payroll Increases: 2.80% per year. This assumption is used to amortize the
unfunded actuarial accrued liability and to determine the Entry Age Normal actuarial
liabilities.
Mortality Rate: Based on rates used in the most recent CalPERS pension valuation.
Turnover Rate: Assumption used to project terminations (voluntary and involuntary) prior
to meeting minimum retirement eligibility for retiree health coverage. The rates represent
the probability of termination in the next 12 months. The termination rates are based on
those used in the most recent CalPERS pension valuation.
Retirement Rate: Annual retirement rates are based on those used in the most recent
CalPERS pension valuation.
Changes in the Total OPEB Liability
The changes in the plan’s total OPEB liability is as follows:
Net OPEB
Liability (Asset)
Balance - June 30, 2024 45,452,076$
Changes Recognized for the Measurement Period:
Service Cost 1,419,494
Interest 1,878,907
Differences Between Expected and Actual Experience 622,499
Changes of Assumptions (163,741)
Benefit Payments (2,783,065)
Net Changes 974,094
Balance - June 30, 2025
(Measurement Date June 30, 2024)46,426,170$
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(74)
NOTE 14 OTHER POST-EMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
Sensitivity of the OPEB Liability to Changes in the Discount Rate
The following presents the City’s OPEB liability if it were calculated using a discount rate
that is one percentage point lower or one percentage point higher than the current rate, for
the measurement period ended June 30, 2025:
Current
1% Decrease Discount Rate 1% Increase
(3.21%) (4.21%) (5.21%)
OPEB Liability 52,007,091$ 46,426,170$ 41,788,980$
Sensitivity of the OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the OPEB liability of the City if it were calculated using health care
cost trend rates that are one percentage point lower or one percentage point higher than the
current rate, for the measurement period ended June 30, 2025:
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
(7.00% decreasing (8.00% decreasing (9.00% decreasing
to 3.50%) to 4.50%) to 5.50%)
OPEB Liability 43,160,878$ 46,426,170$ 51,068,651$
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability are recognized in OPEB expense
systematically over time. Amounts are first recognized in OPEB expense for the year the
gain or loss occurs.
The remaining amounts are categorized as deferred outflows and deferred inflows of
resources related to OPEB and are to be recognized in future OPEB expense. The initial
amortization period for deferred inflows and deferred outflows is three years.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $2,858,347.
At June 30, 2025, the City reported deferred outflows and inflows of resources related to
OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB Contributions Subsequent to Measurement Date 2,900,880$ -$
Differences Between Expected and Actual Experience 857,675 (8,624,445)
Changes in Assumptions 5,088,251 (10,670,546)
Total 8,846,806$ (19,294,991)$
The $2,900,880 reported as deferred outflows of resources related to contributions
subsequent to the June 30, 1899 measurement date will be recognized as a reduction of the
net OPEB liability during the fiscal year ending June 30, 2026.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(75)
NOTE 14 OTHER POST-EMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
(Continued)
Other amounts reported as deferred inflows of resources related to OPEB will be recognized
as expense as follows:
Deferred
Outflows/(Inflows)
Year Ending June 30,of Resources
2026 (440,055)$
2027 (1,226,141)
2028 (1,226,141)
2029 (1,660,984)
2030 (2,030,969)
Thereafter (6,764,775)
Total (13,349,065)$
NOTE 15 POST-EMPLOYMENT BENEFITS RHS (DEFINED CONTRIBUTION)
On January 1, 2004, the City adopted a new Retirement Health Savings Plan (RHS) for all
full-time active employees. This benefit was ratified in the City’s contractual agreements
(MOU) with the Costa Mesa Employees Association (CMCEA), Costa Mesa Police
Association (CMPA), Costa Mesa Police Management Association (CMPMA), and the Costa
Mesa Firefighters Association (CMFA). This post-employment medical benefit is to assist
employees with their qualifying medical expenses or premiums upon retirement or
separation from the City with no minimum age requirement. The RHS plan is a defined
contribution plan for all full time employees at the City. Under this plan, the employee and
the City each make a mandatory 1% of base pay contribution. If the employee separates
from the City prior to the 10-year vesting period, the employee forfeits his or her share of the
City’s contribution.
The City has no payment obligations once the employee separates from the City. Per a side
letter agreement with employees, the RHS program was suspended starting November 7,
2010. For the CMPMA, effective July 2014, a 1% employee contribution is required to the
plan, but no employer contribution is required. The City’s contribution to the defined
contribution post-retirement plan for the year ended June 30, 2025 was $0.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(76)
NOTE 16 EXPENDITURES IN EXCESS OF APPROPRIATIONS
Excess of expenditures over appropriations in individual funds at the function level (level of
budgetary control) is as follows at June 30, 2025:
Actual Final Budget
Function Expenditures Appropriations Excess
Major Fund:
General Fund
City Attorney 1,107,716$ 1,086,750$ (20,966)$
Information Technology 6,710,372 6,030,365 (680,007)
Facilities and
Equipment Maintenance 13,124,814 12,585,530 (539,284)
Building and Safety 3,590,671 3,584,859 (5,812)
Planning 2,582,541 1,996,962 (585,579)
Public Services
Administration 2,498,764 2,385,716 (113,048)
Transportation 3,721,711 3,398,116 (323,595)
Special Revenue
Funds:
Supplemental Law Protection of Persons
Enforcement and Property 376,562 343,882 (32,680)
Services Fund
NOTE 17 RISK MANAGEMENT
For the fiscal year ended June 30, 2025, the City participated in the California Municipal
Excess Liability (CAMEL) Program. The membership of CAMEL consists of 21 cities with
similar interests and needs regarding liability insurance. The Board of Directors sets the
premiums for each participant and each participant is represented on the Board. Premiums
are based upon the losses incurred by each member and are not affected by losses incurred
by other members.
In the Self-Insurance Workers’ Compensation/General Liability/Unemployment Internal
Service Fund, the City has recorded liabilities of $16,354,815 for lawsuits and other claims
arising in the ordinary course of business. The City is also self-insured for the first
$2,000,000 of each claim arising for workers’ compensation and has purchased outside
insurance coverage in excess of the $2,000,000 up to an unlimited maximum. The City is
self-insured for the first $2,000,000 of each claim arising for general liability. The City has
purchased outside insurance coverage in excess of the $2,000,000 up to a maximum of
$25,000,000 per occurrence. For the past three years, claim payments have not exceeded
the amount of applicable insurance coverage.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(77)
NOTE 17 RISK MANAGEMENT (CONTINUED)
The City has estimated losses for claims and judgments and has established liabilities of
$12,678,373 for workers’ compensation and $3,676,442 for general liability. Losses for
claims incurred but not reported are recorded when the probable amount of loss can be
reasonably estimated. These amounts represent estimates of amounts to be paid for
reported claims and incurred but not yet reported claims based upon past experience,
modified for current trends and information. While the ultimate amount of losses incurred
through June 30, 2025 is dependent on future developments, based upon information from
the City Attorney, the City’s claims administrators and others involved with the administration
of the programs, City management believes the accrual is adequate to cover such losses.
The City is contingently liable for additional losses not reported in the accompanying
financial statements in the range of approximately $25,000 to $2,000,000 for which the
likelihood of an unfavorable outcome is only reasonably possible, as determined by legal
counsel.
Changes in claims payable for the past two fiscal years are as follows:
Claims Incurred
Beginning and Changes Claim
Fiscal Year Balance in Estimates Payments Ending Balance
2023-24 13,827,398$ 1,932,581$ (799,412)$ 14,960,567$
2024-25 14,960,567 2,528,677 (1,134,429) 16,354,815
NOTE 18 RESTATEMENT OF BEGINNING NET POSITION AND FUND BALANCE
A.Changes to or within Financial Reporting Entity
Change in Fund Presentation from Major to Nonmajor
Measure M2 Special Revenue Fund previously did not meet the criteria to be reported
as a major governmental fund. However, effective July 1, 2024, the met the criteria to be
reported as a major fund and is reported as a major governmental fund for the fiscal year
ended June 30, 2025. The effect of that change to or within the financial reporting entity
is shown in column A of the table below
B.Change in Accounting Principle
Effective July 1, 2024, the City implemented GASB Statement No. 101, Compensated
Absences. This statement updated the recognition and measurement guidance for
compensated absences and associated salary-related payments and amended certain
previously required disclosures. As a result of the implementation of this standard, the
compensated absences liability as of July 1, 2024 was understated by $2,785,312. This
resulted to a restatement of the beginning net position of the governmental activities by
$2,785,312. The effect of the implementation of this standard is shown in column B of
the table below.
CITY OF COSTA MESA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(78)
NOTE 18 RESTATEMENT OF BEGINNING NET POSITION AND FUND BALANCE (CONTINUED)
Change in Change in
June 30, 2024, Reporting Accounting 30-Jun-24
As Previously Entity Principle As Adjusted or
Reported (A) (B)Restated
Government-Wide:
Governmental Activities 113,204,885$ -$ (2,785,312)$ 110,419,573$
Total Primary Government 113,204,885$ -$ (2,785,312)$ 110,419,573$
Governmental Funds:
Major Funds:
General Fund 60,362,901$ -$ -$ 60,362,901$
Government Grants Special Revenue Fund (1,538,018) - - (1,538,018)
Gas Tax Special Revenue Fund 21,830,719 - - 21,830,719
American Rescue Plan Act Special Revenue Fund 425,256 - - 425,256
Measure M2 Capital Projects Fund - 7,767,460 - 7,767,460
Capital Improvements Capital Projects Fund 35,387,391 - - 35,387,391
Nonmajor Funds 33,283,813 (7,767,460) - 25,516,353
Total Governmental Funds 149,752,062$ -$ -$ 149,752,062$
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ANNUAL COMPREHENSIVEFINANCIAL REPORTREQUIRED SUPPLEMENTARY INFORMATION
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(79)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Pension Liability:
Service Cost 5,721,926$ 4,882,865$ 4,524,340$ 4,114,686$ 4,081,002$ 3,828,540$ 3,528,896$ 3,659,618$ 3,269,125$ 3,187,235$
Interest on Total Pension Liability 22,953,564 22,111,904 21,200,745 20,957,522 20,506,212 19,990,625 19,188,563 18,996,998 18,633,944 18,262,096
Differences Between Expected and
Actual Experience 4,199,393 5,590,884 (2,514,720) (1,467,232) (324,784) 4,152,146 (3,837,320) (1,038,444) (2,818,846) (2,016,112)
Changes in Assumptions - - 9,049,210 - - - (1,071,584) 15,484,252 - (4,399,842)
Changes in Benefit Terms - 372,418 - - - - - - - -
Benefit Payments, Including Refunds
of Employee Contributions (19,691,688) (19,139,741) (18,185,189) (17,147,887) (16,501,681) (16,317,568) (15,285,935) (14,720,378) (14,145,202) (13,476,175)
Net Change in Total Pension Liability 13,183,195 13,818,330 14,074,386 6,457,089 7,760,749 11,653,743 2,522,620 22,382,046 4,939,021 1,557,202
Total Pension Liability - Beginning 335,445,836 321,627,506 307,553,120 301,096,031 293,335,282 281,681,539 279,158,919 256,776,873 251,837,852 250,280,650
Total Pension Liability - Ending (a)348,629,031 335,445,836 321,627,506 307,553,120 301,096,031 293,335,282 281,681,539 279,158,919 256,776,873 251,837,852
Plan Fiduciary Net Position:
Contributions - Employer 12,798,677 12,048,314 10,995,829 10,097,843 9,336,852 8,320,570 7,300,573 6,712,045 6,226,072 5,768,827
Contributions - Employees 3,282,484 2,616,057 2,265,758 2,062,454 2,205,872 2,055,169 1,906,040 1,936,240 1,966,557 1,978,052
Net Investment Income 21,406,865 13,272,083 (17,866,615) 44,605,186 9,609,644 11,863,211 15,161,548 18,711,484 897,287 3,881,685
Benefit Payments (19,691,688) (19,139,741) (18,185,189) (17,147,887) (16,501,681) (16,317,568) (15,285,935) (14,720,378) (14,145,205) (13,476,175)
Plan to Plan Resource Movement - - - - - - (1,077) - 3,064 13,634
Administrative Expense (181,210) (157,409) (147,635) (197,367) (272,363) (133,740) (279,147) (246,188) (104,766) (193,604)
Othe Miscellaneous Income (Expense)- - - - - 435 (530,105) - - -
Net Change in Plan Fiduciary Net Position 17,615,128 8,639,304 (22,937,852) 39,420,229 4,378,324 5,788,077 8,271,897 12,393,203 (5,156,991) (2,027,581)
Plan Fiduciary Net Position - Beginning 222,698,544 214,059,240 236,997,092 197,576,863 193,198,539 187,410,462 179,138,565 166,745,362 171,902,353 173,929,934
Plan Fiduciary Net Position - Ending (b)240,313,672 222,698,544 214,059,240 236,997,092 197,576,863 193,198,539 187,410,462 179,138,565 166,745,362 171,902,353
Net Pension Liability (Asset) - Ending (a) - (b)108,315,359$ 112,747,292$ 107,568,266$ 70,556,028$ 103,519,168$ 100,136,743$ 94,271,077$ 100,020,354$ 90,031,511$ 79,935,499$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 68.93%66.39%66.56%77.06%65.62%65.86%66.53%64.17%64.94%68.26%
Covered Payroll 33,906,374$ 27,755,413$ 26,486,277$ 26,206,105$ 24,012,483$ 24,394,495$ 20,067,193$ 19,532,886$ 19,890,931$ 17,928,997$
Net Pension Liability as a Percentage of
Covered Payroll 319.45%406.22%406.13%269.24%431.11%410.49%469.78%512.06%452.63%445.84%
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED)
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(80)
Notes to Schedule:
Benefit Changes – The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date.
However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability
impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the
changes of benefit terms.
Changes in Assumptions – There were no assumption changes in 2023 to 2025. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting
discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as
the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience
Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates
June 30, 2015 through 2016, and 7.50% for measurement date June 30, 2014.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(81)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially Determined Contribution 14,236,977$ 12,578,180$ 11,953,509$ 11,072,097$ 10,249,971$ 9,876,401$ 9,256,492$ 6,913,866$ 6,522,784$ 6,056,123$
Contributions in Relation to the Actuarially
Determined Contributions (14,236,977) (12,578,180) (11,953,509) (11,072,097) (10,249,971) (9,876,401) (9,256,492) (6,913,866) (6,522,784) (6,056,123)
Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered Payroll 37,136,028$ 33,906,374$ 27,755,413$ 26,486,277$ 26,206,105$ 24,012,483$ 24,394,495$ 20,067,193$ 19,532,886$ 19,890,931$
Contributions as a Percentage of
Covered Payroll 38.34%37.10%43.07%41.80%39.11%41.13%37.95%34.45%33.39%30.45%
Notes to Schedule:
Valuation date for June 30, 2025 6/30/22
Methods and assumptions used to determine contribution rates:
Single and agent employers Entry Age Actuarial Cost Method
Amortization method/period Varies by date established and source. May be level dollar or level
percent of pay and may include direct rate smoothing
Asset valuation method Market value of assets
Inflation 2.30%
Salary increases Varies by category, entry age, and duration of service
Investment rate of return 6.80%, net of pension plan investment and administrative expense;
Includes inflation
Other Information:
For changes to previous year’s information, refer to past GASB 68 reports.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
POLICE SAFETY PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(82)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Pension Liability:
Service Cost 5,777,255$ 5,660,455$ 5,458,052$ 4,811,521$ 4,912,766$ 4,959,915$ 4,653,580$ 4,475,641$ 4,011,055$ 4,048,034$
Interest on Total Pension Liability 25,115,301 24,218,751 23,094,674 22,650,069 21,872,003 21,235,614 20,611,486 20,072,034 19,519,447 18,452,568
Differences Between Expected and
Actual Experience 2,338,711 5,683,147 (4,554,440) 503,266 (1,729,542) (2,112,152) (1,494,789) (2,148,051) 4,436,634 1,744,508
Changes in Assumptions - - 11,831,923 - - - (1,540,347) 17,608,748 - (4,744,823)
Changes in Benefit Terms - 99,834 - - - - - - - -
Benefit Payments, Including Refunds
of Employee Contributions (19,904,122) (18,661,561) (17,630,306) (16,651,882) (16,058,867) (15,024,883) (14,129,155) (13,984,335) (13,319,431) (12,625,831)
Net Change in Total Pension Liability 13,327,145 17,000,626 18,199,903 11,312,974 8,996,360 9,058,494 8,100,775 26,024,037 14,647,705 6,874,456
Total Pension Liability - Beginning 368,714,588 351,713,962 333,514,059 322,201,085 313,204,725 304,146,231 296,045,456 270,021,419 255,373,714 248,499,258
Total Pension Liability - Ending (a)382,041,733 368,714,588 351,713,962 333,514,059 322,201,085 313,204,725 304,146,231 296,045,456 270,021,419 255,373,714
Plan Fiduciary Net Position:
Contributions - Employer 13,718,693 13,196,625 12,366,023 11,583,086 10,608,592 9,471,893 8,263,652 7,592,902 5,992,098 5,228,944
Contributions - Employees 2,948,851 2,402,021 2,367,983 2,166,528 2,285,323 2,222,313 2,120,029 2,012,546 1,988,684 2,191,295
Net Investment Income 21,763,931 13,524,316 (18,004,303) 44,470,479 9,465,284 11,872,172 14,402,562 17,309,154 825,770 3,618,253
Benefit Payments (19,904,122) (18,661,561) (17,630,306) (16,651,882) (16,058,867) (15,024,883) (14,129,155) (13,984,335) (13,319,431) (12,625,831)
Plan to Plan Resource Movement - - - - - - 222 - 72 -
Administrative Expense (183,473) (158,230) (147,153) (194,644) (266,185) (128,739) (265,711) (233,009) (98,993) (182,933)
Othe Miscellaneous Income (Expense)- - - - - 420 (504,590) - - -
Net Change in Plan Fiduciary Net Position 18,343,880 10,303,171 (21,047,756) 41,373,567 6,034,147 8,413,176 9,887,009 12,697,258 (4,611,800) (1,770,272)
Plan Fiduciary Net Position - Beginning 225,479,353 215,176,182 236,223,938 194,850,371 188,816,224 180,403,048 170,516,039 157,818,781 162,430,581 164,200,853
Plan Fiduciary Net Position - Ending (b)243,823,233 225,479,353 215,176,182 236,223,938 194,850,371 188,816,224 180,403,048 170,516,039 157,818,781 162,430,581
Net Pension Liability (Asset) - Ending (a) - (b)138,218,500$ 143,235,235$ 136,537,780$ 97,290,121$ 127,350,714$ 124,388,501$ 123,743,183$ 125,529,417$ 112,202,638$ 92,943,133$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 63.82%61.15%61.18%70.83%60.47%60.29%59.31%57.60%58.45%63.61%
Covered Payroll 23,135,065$ 20,069,395$ 17,075,363$ 15,883,165$ 16,175,525$ 17,534,445$ 14,529,255$ 14,696,132$ 14,161,162$ 13,714,558$
Net Pension Liability as a Percentage of
Covered Payroll 597.44%713.70%799.62%612.54%787.30%709.40%851.68%854.17%792.33%677.70%
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED)
POLICE SAFETY PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(83)
Notes to Schedule:
Benefit Changes – The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date.
However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability
impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the
changes of benefit terms.
Changes in Assumptions – There were no assumption changes in 2023 to 2025. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting
discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as
the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience
Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates
June 30, 2015 through 2016, and 7.50% for measurement date June 30, 2014.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
POLICE SAFETY PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(84)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially Determined Contribution 14,905,682$ 12,295,561$ 13,172,096$ 11,680,985$ 11,803,904$ 11,174,155$ 10,894,754$ 8,098,773$ 7,592,899$ 5,994,277$
Contributions in Relation to the Actuarially
Determined Contributions (14,905,682) (12,295,561) (13,172,096) (11,680,985) (11,803,904) (11,174,155) (10,894,754) (8,098,773) (7,592,899) (5,994,277)
Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ -$
Covered Payroll 22,606,971$ 23,135,065$ 20,069,395$ 17,075,363$ 15,883,165$ 16,175,525$ 17,534,445$ 14,529,255$ 14,696,132$ 14,161,162$
Contributions as a Percentage of
Covered Payroll 65.93%53.15%65.63%68.41%74.32%69.08%62.13%55.74%51.67%42.33%
Notes to Schedule:
Valuation date for June 30, 2025 6/30/22
Methods and assumptions used to determine contribution rates:
Single and agent employers Entry Age Actuarial Cost Method
Amortization method/period Varies by date established and source. May be level dollar or level
percent of pay and may include direct rate smoothing
Asset valuation method Market value of assets
Inflation 2.30%
Salary increases Varies by category, entry age, and duration of service
Investment rate of return 6.80%, net of pension plan investment and administrative expense;
Includes inflation
Other Information:
For changes to previous year’s information, refer to past GASB 68 reports.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
FIRE SAFETY PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(85)
Fiscal Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
Plan's Proportion of the Net Pension Liability 1.22423% 0.61916% 0.63698% 0.67861% 0.74962% 0.75901% 0.78122% 0.75976% 0.78750% 0.85980%
Plan's Proportionate Share of the 89,256,235$ 91,243,941$ 88,285,197$ 61,763,064$ 81,561,540$ 77,775,545$ 75,280,246$ 75,347,795$ 68,144,130$ 59,018,969$
Net Pension Liability
Plan's Covered Payroll 12,297,318$ 10,924,436$ 9,845,473$ 9,203,544$ 9,034,047$ 9,614,585$ 9,057,608$ 9,116,708$ 9,235,056$ 8,616,507$
Plan's Proportionate Share of the
Net Pension Liability as a Percentage
of Covered Payroll 725.82%835.23%896.71%671.08%902.82%808.93%831.13%826.48%737.89%684.95%
Plan's Proportionate Share of the Fiduciary
Net Position as a Percentage
of the Plan's Total Pension Liability 0.00%60.18%60.47%71.38%73.12%73.37%73.39%71.74%74.06%78.40%
Plan's Proportionate Share of Aggregate
Employer Contributions 9,446,737$ 9,408,864$ 9,072,094$ 7,555,477$ 6,865,279$ 5,855,909$ 5,040,152$ 5,040,152$ 4,087,020$ 4,600,229$
Notes to Schedule:
Benefit Changes – There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employer in the plan may have provided a benefit improvement to
their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial
statement as CalPERS considers such amount to be separately financed employer-specific liabilities. These employers should consult with their auditors/ Additionally, the figures above do not include any
liability impact that occurred after the June 30, 2022 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans, this is a Class 3 benefit and there is no
normal cost surcharge. The impact on the unfunded liability is included in the pool’s differences between expected and actual experience.
Changes in Assumptions – There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced
from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations, as well as the expected pension fund cash flows. In addition,
demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate
was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through 2016, and 7.50% for measurement date June 30, 2014.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
FIRE SAFETY PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(86)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Contractually Required Contribution
(Actuarially Determined) 10,645,047$ 9,446,737$ 9,408,864$ 9,072,094$ 7,555,477$ 6,865,279$ 5,855,909$ 5,040,152$ 3,598,782$ 3,286,280$
Contributions in Relation to the Actuarially
Determined Contributions (10,645,047) (9,446,737) (9,804,864) (9,072,094) (7,555,477) (6,865,279) (5,855,909) (5,040,152) (3,598,782) (3,786,280)
Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ (500,000)$
Covered Payroll 12,859,916$ 12,297,318$ 10,924,436$ 9,845,473$ 9,203,544$ 9,034,047$ 9,614,585$ 9,057,608$ 9,116,708$ 9,235,056$
Contributions as a Percentage of
Covered Payroll 82.78%76.82%86.13%92.14%82.09%75.99%60.91%55.65%39.47%41.00%
Notes to Schedule:
Valuation date for June 30, 2025 6/30/22
Methods and assumptions used to determine contribution rates:
Single and agent employers Entry Age Actuarial Cost Method
Amortization method/period Varies by date established and source. May be level dollar or level
percent of pay and may include direct rate smoothing.
Asset valuation method Market value of assets
Inflation 2.30%
Salary increases Varies by category, entry age, and duration of service
Investment rate of return 6.90%, net of pension plan investment and administrative expense;
Includes inflation
Other Information:
For changes to previous year’s information, refer to past GASB 68 reports.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
POLICE 1% SUPPLEMENTAL RETIREMENT PLAN
LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information.
(87)
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Total Pension Liability:
Interest on Total Pension Liability 60,020$ 64,074$ 66,959$ 45,623$ 55,426$ 69,134$ 79,579$ 82,454$ 77,214$ 80,950$
Differences Between Expected and
Actual Experience - (26,421) - 101,666 - 80,298 - (9,704) - (19)
Changes in Assumptions (65,670) (13,865) (16,007) (332,850) 59,262 122,873 46,602 (18,938) (107,900) -
Benefit Payments, Including Refunds
of Employee Contributions (180,680) (188,828) (198,365) (204,445) (204,445) (205,036) (205,233) (205,233) (208,260) (211,287)
Net Change in Total Pension Liability (186,330) (165,040) (147,413) (390,006) (89,757) 67,269 (79,052) (151,421) (238,946) (130,356)
Total Pension Liability - Beginning 1,572,306 1,737,346 1,884,759 2,274,765 2,364,522 2,297,253 2,376,305 2,527,726 2,766,672 2,897,028
Total Pension Liability - Ending (a)1,385,976$ 1,572,306$ 1,737,346$ 1,884,759$ 2,274,765$ 2,364,522$ 2,297,253$ 2,376,305$ 2,527,726$ 2,766,672$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Net Pension Liability as a Percentage of
Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Notes to Schedule:
There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the pension plan.
The discount rate changed from 3.50% as of June 30, 2018 to 3.15% as of June 30, 2019 measurement date.
The discount rate changed from 3.15% as of June 30, 2019 to 2.45% as of June 30, 2020 measurement date.
The discount rate changed from 2.45% as of June 30, 2020 to 2.10% as of June 30, 2021 measurement date.
The discount rate changed from 2.10% as of June 30, 2021 to 3.75% as of June 30, 2022 measurement date.
The discount rate changed from 3.75% as of June 30, 2022 to 3.90% as of June 30, 2023 measurement date.
The discount rate changed from 3.90% as of June 30, 2023 to 4.05% as of June 30, 2024 measurement date.
The discount rate changed from 4.05% as of June 30, 2024 to 4.90% as of June 30, 2025 measurement date.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information.
(88)
Fiscal Year 06/30/25 06/30/24 6/30/2023 06/30/22 06/30/21 06/30/20 06/30/19 06/30/18
Measurement Period 06/30/24 6/30/2023 06/30/22 06/30/21 06/30/20 06/30/19 06/30/18 06/30/17
Total OPEB Liability:
Service Cost 1,419,494$ 1,359,650$ 2,123,135$ 1,469,582$ 1,145,090$ 1,110,733$ 1,098,145$ 1,229,918$
Interest on Total OPEB Liability 1,878,907 2,146,489 1,470,020 1,675,650 2,060,874 1,852,821 1,812,069 1,622,474
Differences Between Expected and
Actual Experience 622,499 (8,133,352) (480,791) (894,275) (3,128,209) 2,081,994 --
Changes in Assumptions (163,741)238,216 (14,469,369) 3,854,176 6,606,929 3,420,614 (670,841) (3,959,316)
Benefit Payments (2,783,065) (2,535,920) (2,520,497) (2,732,910) (2,719,892) (2,751,358) (2,469,425) (2,318,709)
Net Change in Total OPEB Liability 974,094 (6,924,917) (13,877,502) 3,372,223 3,964,792 5,714,804 (230,052) (3,425,633)
Total OPEB Liability - Beginning 45,452,076 52,376,993 66,254,495 62,882,272 58,917,480 53,202,676 53,432,728 56,858,361
Total OPEB Liability - Ending (a)46,426,170$ 45,452,076$ 52,376,993$ 66,254,495$ 62,882,272$ 58,917,480$ 53,202,676$ 53,432,728$
Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered Employee Payroll1 62,513,350$ 62,202,706$ 53,773,706$ 48,101,217$ 45,645,442$ 43,828,141$ 43,392,898$ 41,026,788$
Notes to Schedule:
1 OPEB benefits are not based on employee payroll.
In fiscal year 2021, the City created a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB
plan. The funds are in a pooled account – balanced index. As of June 30, 2024, the market value of the investments held in the trust was
$1,867,408 and is reflected as a contribution subsequent to the measurement date as of fiscal year 2023.
Changes in Assumptions – The discount rate as of the June 30, 2016 measurement date was 2.85%. The discount rate as of the June 30, 2017
measurement date was 3.40%. The discount rate as of the June 30, 2018 measurement date was 3.50%. The discount rate as of the June 30, 2019
measurement date was 3.51%. The discount rate as of the June 30, 2020 measurement date was 2.66%. The discount rate as of the June 30, 2021
measurement date was 2.19%. The discount rate as of the June 30, 2022 measurement date was 4.09%. The discount rate as of June 30, 2023
was 4.13%.
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10
years as information becomes available.
*Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown.
See accompanying Notes to Required Supplementary Information.
(89)
GENERAL FUND
The General Fund is used to account for all general revenues of the City not specifically levied or
collected for special purposes, and for expenditures related to the provision of general services by the
City. The General Fund is used to account for all resources not required to be accounted for in another
fund.
GOVERNMENT GRANTS FUND
The Government Grants Fund is used to account for receipt and disbursement of grant monies
provided by Federal, State, and County governmental agencies for various programs.
GAS TAX FUND
The Gas Tax Fund is used to account for the receipt and disbursement of funds required to be used for
construction and maintenance of the City’s road network system. Financing is provided by the City’s
share of State gasoline taxes, including allocations from the Highway Users Tax Account (HUTA) and
the Road Maintenance and Rehabilitation Account (RMRA).
AMERICAN RESCUE PLAN ACT FUND (ARPA)
The ARPA Fund is used to account for the receipt and disbursement of grant monies under the
American Rescue Plan Act.
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GENERAL FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Required Supplementary Information.
(90)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
REVENUES
Taxes:
Sales Tax 80,063,389$ 78,163,389$ 78,244,492$ 81,103$ 76,400,160$
Property Tax 60,473,546 59,367,751 59,317,656 (50,095) 56,465,749
Transient Occupancy Tax 10,136,373 9,962,373 9,962,421 48 10,150,696
Franchise Tax 6,675,334 6,701,334 6,637,150 (64,184) 6,542,802
Cannabis Business Tax 3,896,284 4,106,284 4,082,109 (24,175) 3,195,393
Business License Tax 940,807 978,807 978,401 (406)707,121
Total Taxes 162,185,733 159,279,938 159,222,229 (57,709) 153,461,921
Licenses and Permits 6,401,512 6,831,965 6,809,704 (22,261) 5,982,422
Fines and Forfeitures 1,302,091 1,521,634 1,455,764 (65,870) 1,297,319
Intergovernmental:
Motor Vehicle In-Lieu 115,307 177,378 177,378 -138,951
Prop172 1,504,501 1,394,501 1,392,219 (2,282) 1,396,143
Advances Repayment - - - - 1,368,045
Grants and Other Reimbursements 750,779 2,089,958 2,032,425 (57,533) 2,091,131
Total Intergovernmental 2,370,587 3,661,837 3,602,022 (59,815) 4,994,270
Charges for Services 11,595,929 11,295,560 11,235,537 (60,023) 10,213,746
Rental 4,772,207 4,792,117 4,811,425 19,308 4,512,794
Investment Income (Loss)588,493 2,110,563 2,671,680 561,117 2,250,512
Miscellaneous 1,154,207 1,238,213 1,092,678 (145,535) 1,174,798
Total Revenues 190,370,759 190,731,827 190,901,039 169,212 183,887,782
EXPENDITURES
General Government:
City Council 874,089 797,887 797,517 370 749,750
City Manager
Administration 5,516,390 5,679,586 5,709,470 (29,884) 4,771,870
City Clerk 1,224,687 1,269,687 1,292,523 (22,836) 1,078,738
Personnel Services 2,523,135 2,601,006 2,403,168 197,838 2,594,988
Risk Management Services 330,163 352,698 495,151 (142,453) 458,487
City Attorney 1,086,750 1,086,750 1,107,716 (20,966) 977,061
Financial Services 6,073,764 5,075,600 5,057,429 18,171 4,416,585
Information Technology 6,402,558 6,030,365 6,710,372 (680,007) 5,471,390
Facilities and Equipment Maintenance 13,405,985 12,585,530 13,124,814 (539,284) 14,290,076
Nondepartmental 8,073,183 7,710,612 7,425,461 285,151 6,636,224
Total General Government 45,510,704 43,189,721 44,123,621 (933,900) 41,445,169
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GENERAL FUND (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Required Supplementary Information.
(91)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
EXPENDITURES (Continued)
Protection of Persons and Property:
Police Protection 61,967,050$ 66,750,444$ 66,637,869$ 112,575$ 61,846,778$
Fire Protection 37,734,622 39,129,583 39,086,455 43,128 35,159,633
Building and Safety 3,596,502 3,584,859 3,590,671 (5,812) 3,375,682
Total Protection of Persons and Property 103,298,174 109,464,886 109,314,995 149,891 100,382,093
Community Programs:
Community Recreation 9,430,560 10,871,175 10,688,629 182,546 9,988,871
Planning 2,099,267 1,996,962 2,582,541 (585,579) 2,455,636
Community Improvement 2,326,218 2,089,417 1,568,924 520,493 1,757,726
Development Services Administration 2,119,116 2,137,376 1,811,078 326,298 1,493,742
Total Community Programs 15,975,161 17,094,930 16,651,172 443,758 15,695,975
Public Services:
Administration 2,370,716 2,385,716 2,498,764 (113,048) 2,358,665
Engineering 4,616,915 4,445,465 3,468,792 976,673 2,681,200
Transportation 3,265,386 3,398,116 3,721,711 (323,595) 3,772,021
Total Public Services 10,253,017 10,229,297 9,689,267 540,030 8,811,886
Debt Service:
Principal 3,450,000 2,450,000 594,726 1,855,274 566,391
Interest and Fiscal Charges 1,067,905 854,405 116,351 738,054 62,126
Total Debt Service 4,517,905 3,304,405 711,077 2,593,328 628,517
Total Expenditures 179,554,961 183,283,239 180,490,132 2,793,107 166,963,640
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES BEFORE OTHER
FINANCING SOURCES (USES)10,815,798 7,448,588 10,410,907 (2,623,895) 16,924,142
OTHER FINANCING SOURCES (USES)
Subscriptions Proceeds - - 1,036,210 1,036,210 -
Transfers to Other Funds (10,970,988) (8,070,988) (10,848,214) (2,777,226) (16,486,813)
Transfers from Other Funds - - - - 888,618
Total Other Financing Sources (Uses)(10,970,988) (8,070,988) (9,812,004) (1,741,016) (15,598,195)
NET CHANGE IN FUND BALANCE (155,190) (622,400) 598,903 (4,364,911) 1,325,947
Fund Balance - Beginning of Year 60,362,901 60,362,901 60,362,901 -59,036,954
FUND BALANCE - END OF YEAR 60,207,711$ 59,740,501$ 60,961,804$ (4,364,911)$ 60,362,901$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GOVERNMENT GRANTS FUND – MAJOR FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Required Supplementary Information.
(92)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
REVENUES
Intergovernmental 6,883,580$ 26,688,063$ 7,840,461$ (18,847,602)$ 3,275,113$
Investment Income (Loss) - - 87,654 87,654 78,230
Total Revenue 6,883,580 26,688,063 7,928,115 (18,759,948) 3,353,343
EXPENDITURES
Current:
General Government - 9,558,471 2,483,286 7,075,185 2,014,351
Protection of Persons and Property 350,491 6,733,644 1,004,012 5,729,632 1,238,622
Community Programs - 2,726,699 503,154 2,223,545 1,711,393
Public Services 6,342,090 11,565,449 1,819,846 9,745,603 189,845
Total Expenditures 6,692,581 30,584,263 5,810,298 24,773,965 5,154,211
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 190,999 (3,896,200) 2,117,817 6,014,017 (1,800,868)
OTHER FINANCING SOURCES (USES
Transfers Out - (631) - (631) -
NET CHANGE IN FUND BALANCE 190,999 (3,896,831) 2,117,817 6,013,386 (1,800,868)
Fund Balance - Beginning of Year (1,538,018) (1,538,018) (1,538,018) - 262,850
FUND BALANCE - END OF YEAR (1,347,019)$ (5,434,849)$ 579,799$ 6,013,386$ (1,538,018)$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GAS TAX FUND – MAJOR FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Required Supplementary Information.
(93)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
REVENUES
Intergovernmental 5,996,053$ 6,256,916$ 6,236,356$ (20,560)$ 5,981,892$
Investment Income (Loss) - - 1,142,498 1,142,498 845,794
Miscellaneous - 218,959 218,959 - 167,874
Total Revenue 5,996,053 6,475,875 7,597,813 1,121,938 6,995,560
EXPENDITURES
Current:
Public Services 6,869,372 25,883,611 4,659,007 21,224,604 2,721,195
NET CHANGE IN FUND BALANCE (873,319) (19,407,736) 2,938,806 (20,102,666) 4,274,365
Fund Balance - Beginning of Year 21,830,719 21,830,719 21,830,719 - 17,556,354
FUND BALANCE - END OF YEAR 20,957,400$ 2,422,983$ 24,769,525$ (20,102,666)$ 21,830,719$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – AMERICAN RESCUE PLAN ACT – MAJOR FUND
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Required Supplementary Information.
(94)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
REVENUES
Intergovernmental 2,972,172$ 4,894,160$ 4,894,160$ -$ 3,620,652$
Investment Income (Loss)- - 77,484 77,484 166,877
Total Revenue 2,972,172 4,894,160 4,971,644 77,484 3,787,529
EXPENDITURES
Current:
Protection of Persons and Property 46,668 2,018,656 1,968,657 49,999 1,600,000
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)2,925,504 2,875,504 3,002,987 127,483 2,187,529
OTHER FINANCING SOURCES (USES)
Transfer Out (2,925,504) (2,925,504) (2,925,504) - (2,020,652)
NET CHANGE IN FUND BALANCE - (50,000)77,483 127,483 166,877
Fund Balance - Beginning of Year 425,256 425,256 425,256 - 258,379
FUND BALANCE - END OF YEAR 425,256$ 375,256$ 502,739$ 127,483$ 425,256$
CITY OF COSTA MESA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(95)
NOTE 1 BUDGETARY DATA
Annual budgets are legally adopted or amended for all governmental funds on a basis
consistent with accounting principles generally accepted in the United States of America,
except for the following funds for which annual budgets were not adopted or amended:
Special Revenue Funds:
Local Law Enforcement Block Grant
Opioid Settlement
Disaster Fund
Capital Projects Funds:
Fire System Development Fees
Park Acquisition Fund
Lions Park
Debt Service Funds:
Financing Authority Debt Service Fund
The City Council adopts an annual budget submitted by the City Manager prior to the
beginning of each new fiscal year. Public hearings are conducted prior to budget adoption
by the Council. Supplemental appropriations, when required during the period, are also
approved by the City Council. Interfunctional budget adjustments are approved by the City
Manager. Expenditures may not legally exceed appropriations at the department functional
level. At fiscal year-end, all operating budget appropriations lapse.
SU
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ANNUAL COMPREHENSIVEFINANCIAL REPORTSUPPLEMENTARY SCHEDULES
(97)
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenue derived from specific taxes or other
earmarked revenues sources (other than expendable trust or for major capital projects) that are
restricted by law or administrative action to expenditures for specified purposes.
The following funds have been classified as nonmajor governmental funds in the accompanying fund
financial statements:
HOME Program Fund
Established to account for the receipt and disbursement of funds received under the Federal Home
Investment Partnership Program of the Department of Housing and Urban Development. These
revenues must be expended for acquisition, rehabilitation, and new construction of rental housing.
Air Quality Improvement Fund
Established to account for the receipt and disbursement of the City’s share of funds received under
Health & Safety Code 44223 (AB 2766) to finance mobile source air pollution reduction programs
consistent with the California Clean Air Act of 1988.
Community Development Fund
This fund accounts for the receipt and disbursement of the Department of Housing and Urban
Development grants. These revenues must be expended to accomplish one of the following objectives:
elimination of slum or blighted areas to benefit low and moderate income persons, or to meet certain
urgent community development needs.
Supplemental Law Enforcement Services Fund (SLESF)
Established to account for the receipt and disbursement of funds received under the State Citizen’s
Option for Public Safety (COPS) Program allocated pursuant to Government Code Section 30061
enacted by Assembly Bill 3229, Chapter 134 of the 1996 statutes. These COPS/SLESF funds are
allocated based on population and can only be spent for “front line municipal police services” as per
Government Code Section 30061(c)(2).
Rental Rehabilitation Program Fund
Established to account for the receipt and disbursement of grants received from the Department of
Housing and Urban Development under Section 17 of the U.S. Housing Act of 1937. These revenues
must be expended to provide assistance to rehabilitate primarily privately-owned residential rental
property.
Narcotics Forfeiture Fund
Established to account for the receipt and disbursement of narcotic forfeitures received from county,
state, and federal agencies pursuant to Section 11470 of State Health and Safety Code and federal
statute 21USC Section 881.
Local Law Enforcement Block Grant Fund
Established to account for the receipt and disbursement of federal grant monies provided by the 1998
Appropriations Act, Public Law 105-119. These funds are restricted for projects utilized to reduce crime
and improve public safety.
(98)
Office of Traffic Safety Fund
Established to account for the receipt and disbursement of federal grant monies received through the
State Office of Traffic Safety. These funds are restricted for operations utilized to enhance traffic safety
and to reduce drunk driving within the City.
Opioid Settlement Fund
Established to account for receipt and disbursements from settlements related to opioid litigation.
These funds are restricted for purposes aligned with mitigating the adverse effects of opioid abuse and
supporting initiatives aimed at prevention, treatment, recovery, and community support.
Housing Authority Fund
Established pursuant to the California Health and Safety Code, Section 34176(a). The Housing
Authority serves two distinct functions: Low and Moderate Income Housing Asset Fund (LMIHAF) and
homeless program. The LMIHAF is to promote affordable housing for families of low and moderate
income within the City. The homeless program is to provide temporary assistance including housing to
homeless individuals.
Disaster Fund
Established to account for receipt and disbursement of federal and state grant monies received for
declare disasters.
Behavioral Health Fund
The City received an award for the Behavioral Health Bridge Housing ( BHBH) from the Orange County
Health Care Agency (OCHCA) to provide emergency shelter and behavioral health services at the
Costa Mesa Bridge Shelter. The program implements a wide range of behavioral health care services,
which include housing navigation, workforce development, case management, and housing retention.
Housing Asset Trust Fund
The Housing Trust Fund was created to set aside funding for the development of affordable housing.
City Council has emphasized the importance of developing affordable housing for residents of Costa
Mesa and this Fund will assist in creating a pathway to achieving the long-term goal of housing affability
for different income levels
Senior Transportation Fund
Established to account for funding and expenditures related to the Senior Transportation Program.
These programs are designed to provide access to seniors for medical and personal visits. Funding
sources may include but are not limited to: Enhanced Mobility for Senior and Individuals with
Disabilities grant; Orange County Transit Authority Measure M2 grant; and Hoag Hospital grant.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for financial resources segregated for acquisition and
construction of major capital facilities (other than those financed by proprietary funds).
The following have been classified as a major fund in the accompanying government-wide financial
statements:
Capital Improvements Fund
Established to account for construction of capital facilities funded by the City’s General Fund and
various governmental grants.
(99)
Measure M2 Fund
Established to account for the receipt and expenditure of the 2006 voter-approved one-half percent
sales tax for local transportation improvements. Measure M2 is a 30-year extension of the earlier
Measure M program.
The following have been classified as nonmajor funds in the accompanying fund financial statements:
Parking Districts Fund
Established under the Vehicle Parking District Law of 1943, this fund supports the development and
upkeep of public parking facilities in designated downtown areas (along Newport Boulevard). Revenue
from dedicated property tax levies can be used for projects such as building or repairing parking lots
and structures, installing meters or payment systems, improving lighting and safety features, and
enhancing accessibility. These investments help ensure that downtown districts remain accessible,
functional, and supportive of local businesses.
Golf Course Improvements Fund
Established to account the receipt and disbursement of funds for Costa Mesa Country Club capital
improvements. Funding is provided by the receipt of two and one-half percent of monthly gross receipts
of green and tournament fees.
Park Development Fund
Established to account for the receipt and disbursement of funds for development, expansion,
replacement and improvement of the City’s parks, trails and recreational facilities. The funding is
provided by fees levied on new real estate and commercial development. Fees collected help to ensure
the improvement of public amenities necessary to match the growth of the City.
Drainage Fees Fund
Established to account for the receipt and disbursement of funds for construction and maintenance of
the City’s drainage system. Funding is provided by fees charged to residential and commercial
developers.
Traffic Impact Fees Fund
Established to account for the receipt and disbursement of funds for transportation improvements
Citywide. Funding is provided by fees charged to residential and commercial developers.
Fire System Development Fees Fund
Established to account for receipt and disbursement of development impact fees established by
Ordinance 89-1 for future construction of fire protection facilities and equipment for the North Costa
Mesa area.
Jack Hammett Sports Complex Fund
Established to account for receipt and disbursement of funds related to on-going maintenance of Jack
Hammett Sports Complex. Funding is provided by the facility’s rental income.
Lions Park Capital Improvements Fund
Established to account for the receipt and disbursement of funds for construction of a new library and
renovation of the existing library into a neighborhood community center. Project funding is partially
provided by bond proceeds with the remaining balance provided by the Capital Improvements Fund.
Park Acquisition Capital Improvements Fund
Established to account future purchase of park acquisition, design and construction.
(100)
DEBT SERVICE FUNDS
Debt Service Funds are used to account for accumulated resources for and payment of general long-
term debt.
The following have been classified as nonmajor funds in the accompanying fund financial statements:
Financing Authority Debt Service Fund
To accumulate monies for the payment of the 2017 Lease Revenue Bonds. The 2017 Lease Revenue
bonds refunded the Public Financing Authority 2007 Certificates of Participation and provided partial
funding for the Lion’s Park Project.
CITY OF COSTA MESA, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(101)
Supplemental
Air Law Rental
HOME Quality Community Enforcement Rehabilitation
Program Improvement Development Services Program
ASSETS
Cash and Cash Equivalents 401,829$ 614,553$ 1,045,157$ -$ 342,364$
Cash and Investments with Fiscal Agents - - - - -
Due from Other Governments 74,113 38,088 50,083 - -
Accounts Receivable, Net - - - - -
Interest Receivable 2,460 3,785 1,661 - 2,173
Loans Receivable, Net 1,500,000 - - - -
Leases Receivable - - - - -
Rent Receivable - - - - -
Inventory - - - - -
Total Assets 1,978,402$ 656,426$ 1,096,901$ -$ 344,537$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable 103,647$ 4,633$ 22,816$ -$ -$
Accrued Liabilities 295 - 15,640 14,581 -
Retentions Payable - - - - -
Deposits Payable 24 - - - -
Due to Other Funds - - - 19,531 -
Unearned Revenue - - - - -
Total Liabilities 103,966 4,633 38,456 34,112 -
DEFERRED INFLOWS OF RESOURCES
Lease Related - - - - -
Unavailable Revenues - - - - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCES
Nonspendable - - - - -
Restricted for:
Protection of Persons and Property - - - - -
Community Programs 1,874,436 - 1,058,445 - 344,537
Public Services - 651,793 - - -
Debt Service - -- - -
Assigned for:
Protection of Persons and Property - - - - -
Public Services - - - - -
Unassigned - - - (34,112) -
Total Fund Balances 1,874,436 651,793 1,058,445 (34,112) 344,537
Total Liabilities and Fund Balances 1,978,402$ 656,426$ 1,096,901$ -$ 344,537$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(102)
Local Law
Enforcement Office of
Narcotics Block Traffic Opioid Housing
Forfeiture Grant Safety Settlement Authority
ASSETS
Cash and Cash Equivalents 1,658,507$ 36,815$ -$ 1,328,669$ 3,775,321$
Cash and Investments with Fiscal Agents - - - - 29,710
Due from Other Governments - - 93,070 331,118 -
Accounts Receivable, Net - - - - 330,870
Interest Receivable 11,126 234 - 8,432 20,639
Loans Receivable, Net - - - - 3,338,705
Leases Receivable - - - - 1,273,732
Rent Receivable - - - - 13,290
Inventory - - - --
Total Assets 1,669,633$ 37,049$ 93,070$ 1,668,219$ 8,782,267$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable -$ -$ 688$ -$ 528,115$
Accrued Liabilities - - 2,347 - 66,118
Retentions Payable - - - - -
Deposits Payable 345,874 - - - 26,196
Due to Other Funds - - 97,192 - -
Unearned Revenue - - - 13,165 -
Total Liabilities 345,874 - 100,227 13,165 620,429
DEFERRED INFLOWS OF RESOURCES
Lease Related - - - - 1,232,265
Unavailable Revenues - - - - 3,415
Total Deferred Inflows of Resources - - - - 1,235,680
FUND BALANCES
Nonspendable - - - - -
Restricted for:
Protection of Persons and Property 1,323,759 37,049 - - -
Community Programs - - - - 6,926,158
Public Services - - - 1,655,054 -
Debt Service - - - - -
Assigned for:
Protection of Persons and Property - - - - -
Public Services - - - - -
Unassigned - - (7,157) - -
Total Fund Balances 1,323,759 37,049 (7,157) 1,655,054 6,926,158
Total Liabilities and Fund Balances 1,669,633$ 37,049$ 93,070$ 1,668,219$ 8,782,267$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(103)
Capital Projects
Disaster Behavioral Housing Senior Parking
Fund Health Asset Trust Transportation Districts
ASSETS
Cash and Cash Equivalents -$ -$ 2,345,140$ -$ 219,228$
Cash and Investments with Fiscal Agents - - - - -
Due from Other Governments 63,574 134,358 - - 1,406
Accounts Receivable, Net - 63,335 - - -
Interest Receivable - - 15,535 - 1,391
Loans Receivable, Net - -- - -
Leases Receivable - -- - -
Rent Receivable - -- - -
Inventory 28 - - - -
Total Assets 63,602$ 197,693$ 2,360,675$ -$ 222,025$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable 366$ 93,034$ -$ -$ -$
Accrued Liabilities - 4,371 - - -
Retentions Payable - -- - -
Deposits Payable - -- - -
Due to Other Funds 14,609 49,696 - - -
Unearned Revenue - - - - -
Total Liabilities 14,975 147,101 - - -
DEFERRED INFLOWS OF RESOURCES
Lease Related - - - - -
Unavailable Revenues - - - - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCES
Nonspendable 28 - - - -
Restricted for:
Protection of Persons and Property - - - - -
Community Programs - - - - -
Public Services 48,599 50,592 2,360,675 - -
Debt Service - - - - -
Assigned for:
Protection of Persons and Property - - - - -
Public Services - - - - 222,025
Unassigned - - - - -
Total Fund Balances 48,627 50,592 2,360,675 - 222,025
Total Liabilities and Fund Balances 63,602$ 197,693$ 2,360,675$ -$ 222,025$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(104)
Traffic Fire System
Golf Course Park Drainage Impact Development
Improvements Development Fees Fees Fees
ASSETS
Cash and Cash Equivalents 824,252$ 2,039,952$ 2,385,582$ 4,819,961$ 696,388$
Cash and Investments with Fiscal Agents - - - - -
Due from Other Governments - - - - -
Accounts Receivable, Net - - - 46 -
Interest Receivable 48,550 13,755 15,102 30,690 4,419
Loans Receivable, Net - - - - -
Leases Receivable - - - - -
Rent Receivable 19,015 - - - -
Inventory - - - - -
Total Assets 891,817$ 2,053,707$ 2,400,684$ 4,850,697$ 700,807$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable 43,120$ 32,870$ 237,018$ 443,927$ -$
Accrued Liabilities - - - - -
Retentions Payable - - 9,938 57,054 -
Deposits Payable - - - - -
Due to Other Funds - - - - -
Unearned Revenue - - - - -
Total Liabilities 43,120 32,870 246,956 500,981 -
DEFERRED INFLOWS OF RESOURCES
Lease Related - - - - -
Unavailable Revenues - - - - -
Total Deferred Inflows of Resources - - - - -
FUND BALANCES
Nonspendable - - - - -
Restricted for:
Protection of Persons and Property - - - - -
Community Programs - - - - -
Public Services - - - - -
Debt Service - - - - -
Assigned for:
Protection of Persons and Property - - - - 700,807
Public Services 848,697 2,020,837 2,153,728 4,349,716 -
Unassigned - - - - -
Total Fund Balances 848,697 2,020,837 2,153,728 4,349,716 700,807
Total Liabilities and Fund Balances 891,817$ 2,053,707$ 2,400,684$ 4,850,697$ 700,807$
Capital Projects
CITY OF COSTA MESA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(105)
Debt Service
Jack Hammett Lions Park
Sports Capital Park Financing
Complex Improvements Acquisition Authority 2025 2024
ASSETS
Cash and Cash Equivalents 567,142$ 12,725$ 408,375$ -$ 23,521,960$ 29,875,711$
Cash and Investments with Fiscal Agents - - - 1,001 30,711 381,491
Due from Other Governments - - - - 785,810 2,762,815
Accounts Receivable, Net - - - - 394,251 297,039
Interest Receivable 948 1,959 648 - 183,507 39,896
Loans Receivable, Net - - - - 4,838,705 2,795,210
Leases Receivable - - - - 1,273,732 1,355,038
Rent Receivable - - - - 32,305 -
Inventory - - - - 28 28
Total Assets 568,090$ 14,684$ 409,023$ 1,001$ 31,061,009$ 37,507,228$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable -$ -$ -$ -$1,510,234 1,587,115
Accrued Liabilities - - - - 103,352 95,325
Retentions Payable - - - - 66,992 119,686
Deposits Payable 15,000 - - - 387,094 39,902
Due to Other Funds - - - - 181,028 65,076
Unearned Revenue - - - - 13,165 245,258
Total Liabilities 15,000 - - - 2,261,865 2,152,362
DEFERRED INFLOWS OF RESOURCES
Lease Related - - - - 1,232,265 1,323,545
Unavailable Revenues - - - - 3,415 747,508
Total Deferred Inflows of Resources - - - - 1,235,680 2,071,053
FUND BALANCES
Nonspendable - - - - 28 -
Restricted for:
Protection of Persons and Property - - - - 1,360,808 1,272,224
Community Programs - - - - 10,203,576 10,475,793
Public Services - 14,684 409,023 - 5,190,420 9,085,173
Debt Service - -- 1,001 1,001 17,449
Assigned for:
Protection of Persons and Property - - - - 700,807 668,391
Public Services 553,090 - - - 10,148,093 11,800,193
Unassigned - - - - (41,269) (35,410)
Total Fund Balances 553,090 14,684 409,023 1,001 27,563,464 33,283,813
Total Liabilities and Fund Balances 568,090$ 14,684$ 409,023$ 1,001$ 31,061,009$ 37,507,228$
Totals
Capital Projects
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(106)
Supplemental
Air Law Rental
HOME Quality Community Enforcement Rehabilitation
Program Improvement Development Services Program
REVENUES
Taxes -$ -$ -$ -$ -$
Charges for Services - - - - -
Fines and Forfeitures - - - - -
Intergovernmental 560,386 145,853 1,509,889 332,622 -
Investment Income (Loss)14,655 26,873 1,665 (42) 15,764
Rental Income - - - - -
Miscellaneous 134,836 - - - 40,000
Total Revenues 709,877 172,726 1,511,554 332,580 55,764
EXPENDITURES
Current:
General Government - - - - -
Protection of Persons and Property - - - 376,562 -
Community Programs 551,644 - 605,824 - -
Public Services - 19,642 - - -
Debt Service:
Principal - - - - -
Interest - - - - -
Total Expenditures 551,644 19,642 605,824 376,562 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)158,233 153,084 905,730 (43,982) 55,764
OTHER FINANCING SOURCES (USES)
Transfer In - - - - -
Transfer Out - - - - -
Total Other Financing Sources (Uses)- - - - -
NET CHANGE IN FUND BALANCES 158,233 153,084 905,730 (43,982) 55,764
Fund Balances - Beginning of Year,
As Previously Reported Presented 1,716,203 498,709 152,715 9,870 288,773
Change within financial reporting entity
(nonmajor to major fund)- - - - -
Fund Balances - Beginning of Year 1,716,203 498,709 152,715 9,870 288,773
FUND BALANCES - END OF YEAR 1,874,436$ 651,793$ 1,058,445$ (34,112)$ 344,537$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(107)
Local Law
Enforcement Office of
Narcotics Block Traffic Opioid Housing
Forfeiture Grant Safety Settlement Authority
REVENUES
Taxes -$ -$ -$ -$ -$
Charges for Services - - - - -
Fines and Forfeitures 18,655 - - - -
Intergovernmental - - 329,559 756,892 1,429,643
Investment Income (Loss)78,086 1,713 - 61,944 206,698
Rental Income - - - -472,261
Miscellaneous - - - -339,002
Total Revenues 96,741 1,713 329,559 818,836 2,447,604
EXPENDITURES
Current:
General Government - - - - 4,960,209
Protection of Persons and Property - - 301,306 - -
Community Programs - - - - 802,357
Public Services - - - - -
Debt Service:
Principal - - - - -
Interest - - - - -
Total Expenditures - - 301,306 - 5,762,566
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)96,741 1,713 28,253 818,836 (3,314,962)
OTHER FINANCING SOURCES (USES)
Transfer In - - - - 1,923,018
Transfer Out - - - - -
Total Other Financing Sources (Uses)- - - - 1,923,018
NET CHANGE IN FUND BALANCES 96,741 1,713 28,253 818,836 (1,391,944)
Fund Balances - Beginning of Year,
As Previously Reported Presented 1,227,018 35,336 (35,410) 836,218 8,318,102
Change within financial reporting entity
(nonmajor to major fund)- - - - -
Fund Balances - Beginning of Year 1,227,018 35,336 (35,410) 836,218 8,318,102
FUND BALANCES - END OF YEAR 1,323,759$ 37,049$ (7,157)$ 1,655,054$ 6,926,158$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(108)
Capital Projects
Disaster Behavioral Housing Senior
Fund Health Asset Trust Transportation Measure M2
REVENUES
Taxes -$ -$ -$ -$ -$
Charges for Services - - - - -
Fines and Forfeitures - - - - -
Intergovernmental 63,578 945,217 - - -
Investment Income (Loss)- - 93,196 - -
Rental Income - - - - -
Miscellaneous - - - 65,660 -
Total Revenues 63,578 945,217 93,196 65,660 -
EXPENDITURES
Current:
General Government 9,357 920,330 - - -
Protection of Persons and Property 1,925 - - - -
Community Programs 782 - - 65,660 -
Public Services 53,414 - - - -
Debt Service:
Principal - - - - -
Interest - - - - -
Total Expenditures 65,478 920,330 - 65,660 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)(1,900) 24,887 93,196 - -
OTHER FINANCING SOURCES (USES)
Transfer In - - 2,471,196 - -
Transfer Out - - (203,717) - -
Total Other Financing Sources (Uses)- - 2,267,479 - -
NET CHANGE IN FUND BALANCES (1,900) 24,887 2,360,675 - -
Fund Balances - Beginning of Year,
As Previously Reported Presented 50,527 25,705 - - 7,767,460
Change within financial reporting entity
(nonmajor to major fund)- - - - (7,767,460)
Fund Balances - Beginning of Year 50,527 25,705 - - -
FUND BALANCES - END OF YEAR 48,627$ 50,592$ 2,360,675$ -$ -$
Special Revenue
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(109)
Traffic
Parking Golf Course Park Drainage Impact
Districts Improvements Development Fees Fees
REVENUES
Taxes 27,912$ -$ -$ -$ -$
Charges for Services - - 262,786 150,933 573,484
Fines and Forfeitures - - - - -
Intergovernmental - - - - -
Investment Income (Loss)9,717 79,757 104,338 109,517 234,705
Rental Income - 186,142 - - -
Miscellaneous - -- - -
Total Revenues 37,629 265,899 367,124 260,450 808,189
EXPENDITURES
Current:
General Government - - 250,000 - -
Protection of Persons and Property - - - - -
Community Programs - - - - -
Public Services - 49,871 428,009 266,580 1,584,595
Debt Service:
Principal - - - - -
Interest - - - - -
Total Expenditures - 49,871 678,009 266,580 1,584,595
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)37,629 216,028 (310,885) (6,130) (776,406)
OTHER FINANCING SOURCES (USES)
Transfer In - - - - -
Transfer Out - - - - -
Total Other Financing Sources (Uses)- - - - -
NET CHANGE IN FUND BALANCES 37,629 216,028 (310,885) (6,130) (776,406)
Fund Balances - Beginning of Year,
As Previously Reported Presented 184,396 632,669 2,331,722 2,159,858 5,126,122
Change within financial reporting entity
(nonmajor to major fund)- - - - -
Fund Balances - Beginning of Year 184,396 632,669 2,331,722 2,159,858 5,126,122
FUND BALANCES - END OF YEAR 222,025$ 848,697$ 2,020,837$ 2,153,728$ 4,349,716$
Capital Projects
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(110)
Debt Service
Fire System Jack Hammett Lions Park
Development Sports Capital Park Financing
Fees Complex Improvements Acquisition Authority 2025 2024
REVENUES
Taxes -$ -$ -$ -$ -$ 27,912$ 24,610$
Charges for Services - - - - - 987,203 355,005
Fines and Forfeitures - - - - - 18,655 125,118
Intergovernmental - - - - - 6,073,639 8,493,174
Investment Income (Loss)32,416 23,882 17,473 17,065 2,500 1,131,922 1,186,310
Rental Income - - - - - 658,403 883,398
Miscellaneous - - - - - 579,498 271,788
Total Revenues 32,416 23,882 17,473 17,065 2,500 9,477,232 11,339,403
EXPENDITURES
Current:
General Government - - - - - 6,139,896 -
Protection of Persons and Property - - - - - 679,793 812,424
Community Programs - - - - - 2,026,267 7,494,849
Public Services - - 353,603 - - 2,755,714 5,308,611
Debt Service:
Principal - - - - 2,015,000 2,015,000 1,920,000
Interest - - - - 781,175 781,175 879,550
Total Expenditures - - 353,603 - 2,796,175 14,397,845 16,415,434
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)32,416 23,882 (336,130) 17,065 (2,793,675) (4,920,613) (5,076,031)
OTHER FINANCING SOURCES (USES)
Transfer In - - - - 2,777,227 7,171,441 7,111,763
Transfer Out - - - - - (203,717)-
Total Other Financing Sources (Uses)- - - - 2,777,227 6,967,724 7,111,763
NET CHANGE IN FUND BALANCES 32,416 23,882 (336,130) 17,065 (16,448) 2,047,111 2,035,732
Fund Balances - Beginning of Year,
As Previously Reported Presented 668,391 529,208 350,814 391,958 17,449 33,283,813 31,248,081
Change within financial reporting entity
(nonmajor to major fund)- - - - - (7,767,460)-
Fund Balances - Beginning of Year 668,391 529,208 350,814 391,958 17,449 25,516,353 31,248,081
FUND BALANCES - END OF YEAR 700,807$ 553,090$ 14,684$ 409,023$ 1,001$ 27,563,464$ 33,283,813$
Totals
Capital Projects
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
HOME PROGRAM FUND
YEAR ENDED JUNE 30, 2025
(111)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Intergovernmental 567,760$ 560,386$ (7,374)$ 930,234$
Investment Income (Loss) 14,803 14,655 (148) 38,292
Miscellaneous 135,900 134,836 (1,064) 123,856
Total Revenues 718,463 709,877 (8,586) 1,092,382
EXPENDITURES
Current:
Community Programs 1,920,807 551,644 1,369,163 788,957
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,202,344) 158,233 1,360,577 303,425
NET CHANGE IN FUND BALANCE (1,202,344) 158,233 1,360,577 303,425
Fund Balance - Beginning of Year 1,716,203 1,716,203 - 1,412,778
FUND BALANCE - END OF YEAR 513,859$ 1,874,436$ 1,360,577$ 1,716,203$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
AIR QUALITY IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2025
(112)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Intergovernmental 145,800$ 145,853$ 53$ 150,191$
Investment Income (Loss)- 26,873 26,873 17,512
Total Revenues 145,800 172,726 26,926 167,703
EXPENDITURES
Current:
Public Services 374,185 19,642 354,543 114,998
NET CHANGE IN FUND BALANCE (228,385) 153,084 381,469 52,705
Fund Balance - Beginning of Year 498,709 498,709 - 446,004
FUND BALANCE - END OF YEAR 270,324$ 651,793$ 381,469$ 498,709$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2025
(113)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Intergovernmental 1,510,506$ 1,509,889$ (617)$ 619,833$
Investment Income (Loss)- 1,665 1,665 6
Total Revenues 1,510,506 1,511,554 1,048 650,739
EXPENDITURES
Current:
Community Programs 775,008 605,824 169,184 587,184
Public Services 350,000 - 350,000 -
Total Expenditures 1,125,008 605,824 519,184 587,184
NET CHANGE IN FUND BALANCE 385,498 905,730 520,232 63,555
Fund Balance - Beginning of Year 152,715 152,715 - 89,160
FUND BALANCE - END OF YEAR 538,213$ 1,058,445$ 520,232$ 152,715$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND
YEAR ENDED JUNE 30, 2025
(114)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Intergovernmental 331,480$ 332,622$ 1,142$ 321,103$
Investment Income (Loss) - (42) (42) 258
Total Revenues 331,480 332,580 1,100 321,361
EXPENDITURES
Current:
Protection of Persons and Property 343,882 376,562 (32,680) 359,983
NET CHANGE IN FUND BALANCE (12,402) (43,982) (31,580) (38,622)
Fund Balance - Beginning of Year 9,870 9,870 - 48,492
FUND BALANCE - END OF YEAR (2,532)$ (34,112)$ (31,580)$ 9,870$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
RENTAL REHABILITATION FUND
YEAR ENDED JUNE 30, 2025
(115)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Investment Income (Loss) -$ 15,764$ 15,764$ 11,293$
Miscellaneous 40,000 40,000 - -
Total Revenues 40,000 55,764 15,764 11,293
EXPENDITURES
Current:
Community Programs 80,000 - 80,000 -
Total Expenditures 80,000 - 80,000 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (40,000) 55,764 95,764 11,293
NET CHANGE IN FUND BALANCE (40,000) 55,764 95,764 11,293
Fund Balance - Beginning of Year 288,773 288,773 - 277,480
FUND BALANCE - END OF YEAR 248,773$ 344,537$ 95,764$ 288,773$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
NARCOTICS FORFEITURE FUND
YEAR ENDED JUNE 30, 2025
(116)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Fines and Forfeitures 19,000$ 18,655$ (345)$ 125,118$
Investment Income (Loss)- 78,086 78,086 62,501
Total Revenues 19,000 96,741 77,741 187,619
EXPENDITURES
Current:
Protection of Persons and Property 531,271 - 531,271 254,705
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (512,271) 96,741 609,012 (67,086)
OTHER FINANCING SOURCES (USES)
Transfers In 248,380 - 248,380 254,705
NET CHANGE IN FUND BALANCE (263,891) 96,741 857,392 (67,086)
Fund Balance - Beginning of Year 1,227,018 1,227,018 - 1,294,104
FUND BALANCE - END OF YEAR 963,127$ 1,323,759$ 857,392$ 1,227,018$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
OFFICE OF TRAFFIC SAFETY FUND
YEAR ENDED JUNE 30, 2025
(117)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Intergovernmental 422,635$ 329,559$ (93,076)$ 170,221$
EXPENDITURES
Current:
Protection of Persons and Property 422,635 301,306 121,329 197,736
Total Expenditures 422,635 301,306 121,329 197,736
NET CHANGE IN FUND BALANCE - 28,253 28,253 (27,515)
Fund Balance - Beginning of Year (35,410) (35,410) - (7,895)
FUND BALANCE - END OF YEAR (35,410)$ (7,157)$ 28,253$ (35,410)$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
HOUSING AUTHORITY FUND
YEAR ENDED JUNE 30, 2025
(118)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Intergovernmental 1,418,060$ 1,429,643$ 11,583$ 1,320,654$
Investment Income (Loss)112,029 206,698 94,669 231,987
Rental Income 455,421 472,261 16,840 538,955
Miscellaneous 337,101 339,002 1,901 117,032
Total Revenues 2,322,611 2,447,604 124,993 2,208,628
EXPENDITURES
Current:
General Government 10,820,226 4,960,209 5,860,017 -
Community Programs 870,957 802,357 68,600 6,118,708
Total Expenditures 11,691,183 5,762,566 5,928,617 6,118,708
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE (9,368,572) (3,314,962) 6,053,610 (3,910,080)
OTHER FINANCING SOURCES (USES)
OTHER FINANCING SOURCES (USES)
Transfers In 1,923,018 1,923,018 - 3,927,637
NET CHANGE IN FUND BALANCE (7,445,554) (1,391,944) 6,053,610 17,557
Fund Balance - Beginning of Year 8,318,102 8,318,102 - 8,300,545
FUND BALANCE - END OF YEAR 872,548$ 6,926,158$ 6,053,610$ 8,318,102$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
BEHAVIORAL HEALTH FUND
YEAR ENDED JUNE 30, 2025
(119)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative)Actual
REVENUES
Intergovernmental 1,253,590$ 945,217$ (308,373)$ 25,705$
Total Revenues 1,253,590 945,217 (308,373) 25,705
EXPENDITURES
Current:
General Government 2,097,051 920,330 1,176,721 -
Total Expenditures 2,097,051 920,330 1,176,721 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)(843,461) 24,887 (1,485,094) 25,705
NET CHANGE IN FUND BALANCE (843,461) 24,887 868,348 25,705
Fund Balance - Beginning of Year 25,705 25,705 - -
FUND BALANCE - END OF YEAR (817,756)$ 50,592$ 868,348$ 25,705$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – NONMAJOR SPECIAL REVENUE FUNDS
SENIOR TRANSPORTATION FUND
YEAR ENDED JUNE 30, 2025
(120)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Miscellaneous 237,600$ 65,660$ (171,940)$ -$
Total Revenues 237,600 65,660 (171,940) -
EXPENDITURES
Current:
Community Programs 237,600 65,660 171,940 -
Total Expenditures 237,600 65,660 171,940 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - - -
NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR -$ -$ -$ -$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
CAPITAL IMPROVEMENTS
YEAR ENDED JUNE 30, 2025
(121)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
REVENUES
Intergovernmental -$ -$ 566,334$ 566,334$ 152,972$
Investment Income (Loss)- - 1,570,269 1,570,269 1,203,727
Miscellaneous - - 22,401 22,401 35,852
Total Revenue - - 2,159,004 2,159,004 1,392,551
EXPENDITURES
Current:
General Government - 3,971,814 37,180 3,934,634 7,200
Protection of Persons and Property 400,000 1,070,883 215,911 854,972 792,490
Community Programs 55,000 156,183 103,963 52,220 256,672
Public Services 8,700,010 30,223,797 7,671,607 22,552,190 3,297,238
Total Expenditures 9,155,010 35,422,677 8,028,661 27,394,016 4,353,600
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES BEFORE
OTHER FINANCING SOURCES (USES)(9,155,010) (35,422,677) (5,869,657) 29,553,020 (2,961,049)
OTHER FINANCING SOURCES (USES)
Transfer In 6,849,994 3,950,030 3,949,994 (36) 7,194,994
Transfer Out - - - - (384,576)
Total Other Financing Sources (Uses)6,849,994 3,950,030 3,949,994 (36) 6,810,418
NET CHANGE IN FUND BALANCE (2,305,016) (31,472,647) (1,919,663) 29,552,984 3,849,369
Fund Balance - Beginning of Year 35,387,391 35,387,391 35,387,391 - 31,538,022
FUND BALANCE - END OF YEAR 33,082,375$ 3,914,744$ 33,467,728$ 29,552,984$ 35,387,391$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
MEASURE M2
YEAR ENDED JUNE 30, 2025
(122)
Variance with
Final Budget
Original Final Positive Prior Year
Budget Budget Actual (Negative) Actual
REVENUES
Intergovernmental 4,256,148$ 4,022,211$ 3,860,654$ (161,557)$ 4,207,029$
Investment Income (Loss) - - 374,600 374,600 295,795
Total Revenue 4,256,148 4,022,211 4,235,254 213,043 4,502,824
EXPENDITURES
Current:
Public Services 5,146,442 12,263,466 6,283,124 5,980,342 2,484,874
NET CHANGE IN FUND BALANCE (890,294) (8,241,255) (2,047,870) 6,193,385 2,017,950
Fund Balance - Beginning of Year 7,767,460 7,767,460 7,767,460 - 5,749,510
FUND BALANCE - END OF YEAR 6,877,166$ (473,795)$ 5,719,590$ 6,193,385$ 7,767,460$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
PARKING DISTRICTS FUND
YEAR ENDED JUNE 30, 2025
(123)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Taxes 21,434$ 27,912$ 6,478$ 24,610$
Investment Income (Loss)- 9,717 9,717 6,885
Total Revenues 21,434 37,629 16,195 31,495
Fund Balance - Beginning of Year 184,396 184,396 - 152,901
FUND BALANCE - END OF YEAR 205,830$ 222,025$ 16,195$ 184,396$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
GOLF COURSE IMPROVEMENTS FUND
YEAR ENDED JUNE 30, 2025
(124)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Investment Income (Loss)-$ 79,757$ 79,757$ 24,763$
Rental Income 187,000 186,142 (858) 179,443
Total Revenues 187,000 265,899 78,899 204,206
EXPENDITURES
Current:
Public Services 652,078 49,871 602,207 247,921
NET CHANGE IN FUND BALANCE (465,078) 216,028 681,106 (43,715)
Fund Balance - Beginning of Year 632,669 632,669 - 676,384
FUND BALANCE - END OF YEAR 167,591$ 848,697$ 681,106$ 632,669$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
PARK DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2025
(125)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Charges for Services 263,000$ 262,786$ (214)$ 142,598$
Investment Income (Loss)- 104,338 104,338 103,835
Total Revenues 263,000 367,124 104,124 246,433
EXPENDITURES
Current:
Community Programs 250,000 250,000 - -
Public Services 2,205,397 428,009 1,777,388 787,433
Total Expenditures 2,455,397 678,009 1,777,388 787,433
NET CHANGE IN FUND BALANCE (2,192,397) (310,885) 1,881,512 (541,000)
Fund Balance - Beginning of Year 2,331,722 2,331,722 - 2,872,722
FUND BALANCE - END OF YEAR 139,325$ 2,020,837$ 1,881,512$ 2,331,722$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
DRAINAGE FEES FUND
YEAR ENDED JUNE 30, 2025
(126)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Charges for Services 151,000$ 150,933$ (67)$ 81,806$
Investment Income (Loss) - 109,517 109,517 86,162
Total Revenues 151,000 260,450 109,450 167,968
EXPENDITURES
Current:
Public Services 2,276,327 266,580 2,009,747 183,061
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,125,327) (6,130) 2,119,197 (15,093)
NET CHANGE IN FUND BALANCE (2,125,327) (6,130) 2,119,197 (15,093)
Fund Balance - Beginning of Year 2,159,858 2,159,858 - 2,174,951
FUND BALANCE - END OF YEAR 34,531$ 2,153,728$ 2,119,197$ 2,159,858$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
TRAFFIC IMPACT FEES FUND
YEAR ENDED JUNE 30, 2025
(127)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Charges for Services 600,000$ 573,484$ (26,516)$ 130,601$
Investment Income (Loss)-234,705 234,705 209,507
Total Revenues 600,000 808,189 208,189 340,108
EXPENDITURES
Current:
Public Services 5,048,160 1,584,595 3,463,565 1,490,324
NET CHANGE IN FUND BALANCE (4,448,160) (776,406) 3,671,754 (1,150,216)
Fund Balance - Beginning of Year 5,126,122 5,126,122 -6,276,338
FUND BALANCE - END OF YEAR 677,962$ 4,349,716$ 3,671,754$ 5,126,122$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
JACK HAMMETT SPORTS COMPLEX FUND
YEAR ENDED JUNE 30, 2025
(128)
- Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Investment Income (Loss)-$ 23,882$ 23,882$ 17,337$
Rental Income (Loss)-- - 165,000
Total Revenues -23,882 23,882 182,337
EXPENDITURES
Current:
Public Services 400,000 - 400,000 -
NET CHANGE IN FUND BALANCE (400,000) 23,882 423,882 182,337
Fund Balance - Beginning of Year 529,208 529,208 -346,871
FUND BALANCE - END OF YEAR 129,208$ 553,090$ 423,882$ 529,208$
CITY OF COSTA MESA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – MAJOR AND NONMAJOR CAPITAL PROJECTS FUNDS
LIONS PARK CAPITAL IMPROVEMENTS FUND
YEAR ENDED JUNE 30, 2025
(129)
Variance with
Final Budget
Final Positive Prior Year
Budget Actual (Negative) Actual
REVENUES
Investment Income (Loss)-$ 17,473$ 17,473$ 16,678$
EXPENDITURES
Current:
Public Services 353,603 353,603 - -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (353,603) (336,130) 17,473 16,678
OTHER FINANCING SOURCES (USES)
Transfers In 353,602 - (353,602)
Transfers Out (334,136) - 334,136
Total Other Financing Sources (Uses)19,466 - (19,466)16,678
NET CHANGE IN FUND BALANCE (334,137) (336,130) (1,993) 16,678
Fund Balance - Beginning of Year 350,814 350,814 -334,136
FUND BALANCE - END OF YEAR 16,677$ 14,684$ (1,993)$ 350,814$
(130)
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods and services provided by one
City department to another City department on a cost-reimbursement basis.
Equipment Replacement Fund
Established to account for all motorized equipment used by City departments.
Self-Insurance Fund – Workers’ Compensation/General Liability/Unemployment
Established to account for receipt and disbursement of funds used to pay workers’ compensation,
general liability, and unemployment premiums and claims filed against the City.
Information Technology Replacement Fund
Established to provide funds for future replacements and upgrades to City computer equipment,
systems, and supporting infrastructure.
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
(WITH COMPARATIVE DATA FOR PRIOR YEAR)
(131)
Self-Insurance
Workers'
Compensation/
General Information
Equipment Liability/ Technology
Replacement Unemployment Replacement 2025 2024
ASSETS
Current Assets:
Cash and Investments 6,725,689$ 17,531,763$ 12,975,521$ 37,232,973$ 38,731,062$
Accounts Receivable 232 12,528 - 12,760 54,020
Interest Receivable 41,850 110,895 74,671 227,416 54,020
Prepaid Items 2,880,331 - - 2,880,331 4,245,906
Inventories 401,974 - - 401,974 266,236
Total Current Assets 10,050,076 17,655,186 13,050,192 40,755,454 43,351,244
Capital Assets:
Intangible Assets - - 1,932,537 1,932,537 -
Motorized Equipment 24,570,988 - - 24,570,988 22,875,746
Other Equipment 8,645,091 - 187,799 8,832,890 5,928,501
Accumulated Depreciation (18,725,686) - (101,411)(18,827,097) (13,732,948)
Capital Assets, Net 14,490,393 - 2,018,925 16,509,318 15,071,299
Total Assets 24,540,469 17,655,186 15,069,117 57,264,772 58,422,543
LIABILITIES
Current Liabilities:
Accounts Payable 128,282 165,493 76,208 369,983 2,083,460
Accrued Liabilities 80,343 17,596 27,471 125,410 122,911
Notes Payable 891,411 - - 891,411 864,738
Claims Payable - 1,293,969 - 1,293,969 862,543
Total Current Liabilities 1,100,036 1,477,058 103,679 2,680,773 3,933,652
Long-Term Liabilities:
Notes Payable 4,259,726 - - 4,259,726 5,151,138
Claims Payable - 15,060,846 - 15,060,846 14,098,024
Total Long-Term Liabilities 4,259,726 15,060,846 - 19,320,572 19,249,162
Total Liabilities 5,359,762 16,537,904 103,679 22,001,345 23,182,814
NET POSITION
Net Investment in Capital Assets 9,339,256 - 2,018,925 11,358,181 9,055,423
Unrestricted 9,841,451 1,117,282 12,946,513 23,905,246 26,130,286
-
Total Net Position 19,180,707$ 1,117,282$ 14,965,438$ 35,263,427$ 35,185,709$
Total
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(WITH COMPARATIVE DATA FOR PRIOR YEAR)
(132)
Self-Insurance
Workers'
Compensation/
General Information
Equipment Liability/ Technology
Replacement Unemployment Replacement 2025 2024
OPERATING REVENUES
Charges for Services 6,143,747$ 5,092,315$ -$ 11,236,062$ 10,938,708$
Total Operating Revenues 6,143,747 5,092,315 - 11,236,062 10,938,708
OPERATING EXPENSES
Allocated Administrative Costs 2,296,702 832,847 2,102,266 5,231,815 4,288,668
Depreciation 1,632,720 - - 1,632,720 1,532,452
Fuel and Repair Parts 974,182 - - 974,182 1,423,961
Claims and Premiums - 7,892,862 - 7,892,862 6,768,057
Total Operating Expenses 4,903,604 8,725,709 2,102,266 15,731,579 14,151,483
OPERATING INCOME 1,240,143 (3,633,394) (2,102,266) (4,495,517) (3,212,775)
NONOPERATING REVENUES (EXPENSES)
Investment Income (Loss)288,900 812,494 551,500 1,652,894 1,469,458
Intergovernmental - - - - -
Other Nonoperating Revenue 44,420 29,258 - 73,678 10,000
Interest Expense (78,332) - - (78,332) (55,041)
Gain (Loss) on Disposal of Equipment 68,995 - - 68,995 145,438
Total Nonoperating Revenues
(Expenses)323,983 841,752 551,500 1,717,235 1,569,855
INCOME (LOSS) BEFORE TRANSFERS 1,564,126 (2,791,642) (1,550,766) (2,778,282) (1,642,920)
Transfers In - - 2,856,000 2,856,000 3,716,386
Transfers Out - - - - (19,720)
Total Transfers - - 2,856,000 2,856,000 3,696,666
CHANGE IN NET POSITION 1,564,126 (2,791,642) 1,305,234 77,718 2,053,746
Net Position - Beginning of Year 17,616,581 3,908,924 13,660,204 35,185,709 33,131,963
NET POSITION - END OF YEAR 19,180,707$ 1,117,282$ 14,965,438$ 35,263,427$ 35,185,709$
Total
CITY OF COSTA MESA, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(WITH COMPARATIVE DATA FOR PRIOR YEAR)
(133)
Self-Insurance
Workers'
Compensation/
General Information
Equipment Liability/Technology
Replacement Unemployment Replacement 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and User Departments 6,143,515$ 5,079,787$ -$ 11,223,302$ 10,938,708$
Cash Payments to Suppliers for Goods and Services (2,859,418) (6,811,809) (1,351,803) (11,023,030) (7,197,189)
Cash payments to Employees for Services (1,056,950) (434,209) (671,563) (2,162,722)
Cash Received from Other Sources 44,420 29,258 -73,678 (2,926,462)
Net Cash Provided (Used) by Operating Activities 2,271,567 (2,136,973) (2,023,366) (1,888,772) 815,057
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Cash Received from Other Funds -- 2,856,000 2,856,000 3,716,386
Cash Paid to Other Funds -- - - (19,720)
Net Cash Provide (Used) by Noncapital
Financing Activities -- 2,856,000 2,856,000 3,696,666
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal Paid on Capital Debt (864,739) - - (864,739) (563,165)
Interest Paid on Capital Debt (78,332) - - (78,332) (55,041)
Proceeds from Note Payable -- - - 2,276,449
Proceeds from Insurance Settlement -- - - 10,000
Proceeds from Sale of Capital Assets 127,830 - - 127,830 178,217
Acquisition of Capital Assets (3,129,574) - - (3,129,574) (6,896,181)
Net Cash Provided (Used) by Capital and
Related Financing Activities (3,944,815) - - (3,944,815) (5,049,721)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income (Loss)258,791 728,189 492,518 1,479,498 1,459,030
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (1,414,457) (1,408,784) 1,325,152 (1,498,089) 921,032
Cash and Cash Equivalents - Beginning of Year 8,140,146 18,940,547 11,650,369 38,731,062 37,810,030
CASH AND CASH EQUIVALENTS - END OF YEAR 6,725,689$ 17,531,763$ 12,975,521$ 37,232,973$ 38,731,062$
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES
Operating Income (Loss)1,240,143$ (3,633,394)$ (2,102,266)$ (4,495,517)$ (3,212,775)$
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:
Depreciation 1,632,720 - - 1,632,720 1,532,452
Other Revenues 44,420 29,258 73,678
(Increase) Decrease in Accounts Receivable (232) (12,528) -(12,760) 242,026
(Increase) Decrease in Prepaid Items 1,365,575 - - 1,365,575
(Increase) Decrease in Inventories (135,738) - - (135,738) (117,033)
Increase (Decrease) in Accounts Payable (1,868,676) 82,512 72,687 (1,713,477) 1,247,568
Increase (Decrease) in Accrued Liabilities (6,645) 2,931 6,213 2,499 (10,349)
Increase (Decrease) in in Claims Payable -1,394,248 -1,394,248 1,133,168
Net Cash Provided by Operating Activities 2,271,567$ (2,136,973)$ (2,023,366)$ (1,888,772)$ 815,057$
Total
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ANNUAL COMPREHENSIVEFINANCIAL REPORTSTATISTICAL SECTION
(135)
STATISTICAL SECTION
This part of the City’s annual comprehensive financial report presents detailed information as a context
for understanding what information in the financial statements, note disclosures, and required
supplementary information says about the government’s overall financial health.
FINANCIAL TRENDS TABLES 1 – 4
These schedules contain financial trend information to help the
reader understand how the government’s financial performance
and well- being have changed over time.
REVENUE CAPACITY TABLES 5 – 12
These schedules contain revenue information to help the reader
assess the government’s most significant local revenue source.
DEBT CAPACITY TABLES 13 – 15
These schedules present information to help the reader assess the
affordability of the government’s current levels of outstanding debt and
the government’s ability to issue additional debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION TABLES 16 – 17
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government’s
financial activities take place.
OPERATING INFORMATION TABLES 18 – 20
These schedules contain service and infrastructure data to help the
reader understand how the information in the government’s financial
report relates to the services the government provides and the activities it
performs.
TABLE 1
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities
Net investment in capital assets 216,195,466$ 219,280,752$ 235,177,233$ 248,255,931$ 248,815,081$ 255,443,158$ 249,096,798$ 258,068,790$ 257,950,628$ 270,080,000$
Restricted
Pension ---------2,092,360
Protection of Persons and
Property 1,022,546 217,303 150,169 872,898 1,628,892 1,329,350 1,333,365 1,672,814 1,568,489 1,863,547
Community programs 12,793,475 9,588,998 3,767,377 6,162,341 5,687,227 6,176,036 6,796,140 10,118,512 12,663,845 10,206,991
Public services 15,495,090 20,253,747 13,625,826 14,845,159 17,051,750 18,047,015 20,103,188 7,236,370 9,246,161 37,019,168
Debt service ---------1,001
Unrestricted (159,357,224) (161,805,274) (224,657,548) (241,478,263) (251,417,100) (243,934,825) (225,702,393) (166,151,695) (168,224,238) (209,490,787)
Total governmental activities
net position 86,149,353$ 87,535,526$ 28,063,057$ 28,658,066$ 21,765,850$ 37,060,734$ 51,627,098$ 110,944,791$ 113,204,885$ 111,772,280$
Source: Government-Wide Financial Statements
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
CITY OF COSTA MESA, CALIFORNIA
(136)
TABLE 2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental Activities:
General government 24,631,010$ 28,474,037$ 31,695,402$ 34,008,731$ 32,124,703$ 36,763,868$ 31,808,370$ 34,980,361$ 46,273,963$ 57,099,994$
Protection of persons and
property 63,956,413 70,786,483 86,777,544 86,440,751 96,625,585 88,643,852 98,324,072 73,551,002 112,351,024 116,454,036
Community programs 4,639,743 12,069,675 10,126,755 16,363,506 17,285,898 22,007,275 14,887,015 21,097,340 29,965,511 20,681,772
Public services 22,498,495 21,415,061 20,062,183 27,937,004 16,269,612 17,663,842 21,645,247 13,379,020 22,489,959 30,882,547
Interest on long-term debt 1,081,605 974,233 1,082,361 1,138,694 1,083,190 986,593 929,979 962,189 1,033,694 807,311
Total primary government
expenses 116,807,266 133,719,489 149,744,245 165,888,686 163,388,988 166,065,430 167,594,683 143,969,912 212,114,151 225,925,660
Program Revenues
Governmental Activities:
Charges for services:
Protection of persons and
property 2,707,819 2,819,809 3,805,473 7,267,233 7,461,872 5,497,350 6,846,240 8,548,513 9,792,484 10,670,393
Community programs 8,232,995 7,577,878 9,536,570 8,207,122 4,816,413 5,243,843 6,220,199 5,440,973 6,118,182 6,735,983
Public services 3,721,366 3,232,506 5,046,984 6,179,653 7,096,062 6,372,272 8,896,422 8,551,558 7,080,894 8,564,419
Operating grants and
contributions 4,907,815 4,487,089 7,727,382 9,339,283 10,576,719 32,519,129 14,404,940 19,907,594 23,659,800 26,016,091
Capital grants and
contributions 3,370,260 7,114,471 4,755,573 9,142,040 6,251,484 8,267,623 5,528,637 3,905,958 4,395,853 4,477,056
Total primary government
revenues 22,940,255 25,231,753 30,871,982 40,135,331 36,202,550 57,900,217 41,896,438 46,354,596 51,047,213 56,463,942
Total primary government
net expense (93,867,011)$ (108,487,736)$ (118,872,263)$ (125,753,355)$ (127,186,438)$ (108,165,213)$ (125,698,245)$ (97,615,316)$ (161,066,938)$ (169,461,718)$
General Revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property taxes 26,168,612$ 37,925,385$ 40,373,351$ 43,226,688$ 45,548,585$ 47,891,698$ 49,706,079$ 53,806,587$ 56,411,786$ 59,494,432$
Sales and use taxes 58,524,162 57,591,889 56,971,636 62,689,811 55,866,831 63,738,411 77,165,533 79,851,289 76,400,160 78,244,492
Transient occupancy tax 8,622,505 8,924,854 8,819,617 8,595,417 6,587,224 4,282,802 8,366,278 9,830,790 10,150,696 9,962,421
Franchise taxes 5,060,402 4,593,631 4,965,515 5,042,551 4,822,964 4,895,574 5,318,541 6,094,232 6,542,802 6,637,150
Business/Cannabis tax 973,521 918,928 919,450 1,093,154 1,663,100 1,227,843 1,468,202 1,907,551 3,902,514 5,060,510
Other intergovernmental
unrestricted 11,209,989 51,340 60,031 55,343 91,674 84,182 130,289 275,292 138,951 349,375
Investment income (loss)1,871,216 496,650 256,438 4,264,987 4,075,623 (80,831) (3,609,117) 1,821,815 7,200,904 8,709,004
Gain on sale of capital assets - - - - - ----68,995
Miscellaneous 913,351 1,333,610 1,903,266 1,380,413 1,638,221 1,420,418 1,718,804 3,345,453 2,579,219 2,288,046
Settlements - - - - - -----
Total primary government 113,343,758 111,836,287 114,269,304 126,348,364 120,294,222 123,460,097 140,264,609 156,933,009 163,327,032 170,814,425
Change in Net Position 19,476,747$ 3,348,551$ (4,602,959)$ 595,009$ (6,892,216)$ 15,294,884$ 14,566,364$ 59,317,693$ 2,260,094$ 1,352,707$
Source: Government-Wide Financial Statements
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
CITY OF COSTA MESA, CALIFORNIA
Fiscal Years
(137)
TABLE 3
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Nonspendable 2,486,085$ 2,253,843$ 2,038,518$ 280,195$ 362,189$ 964,846$ 603,547$ 458,687$ 630,182$ 883,072$
Restricted - - - - - 1,778,220 3,061,154 3,178,229 3,367,408 2,092,360
Committed 16,125,000 16,125,000 16,125,000 23,625,000 25,125,000 25,125,000 25,125,000 25,125,000 25,125,000 25,125,000
Assigned 13,820,663 13,819,088 13,730,832 8,940,072 9,151,062 8,195,429 12,469,067 13,946,622 13,554,327 13,554,327
Unassigned 32,040,713 30,867,198 23,329,730 20,451,232 18,825,417 17,428,766 16,517,079 16,328,416 17,685,984 19,307,045
Total general fund 64,472,461$ 63,065,129$ 55,224,080$ 53,296,499$ 53,463,668$ 53,492,261$ 57,775,847$ 59,036,954$ 60,362,901$ 60,961,804$
All other governmental funds
Restricted 19,309,083$ 28,056,898$ 30,108,463$ 21,753,832$ 25,676,330$ 25,200,380$ 26,636,885$ 35,221,550$ 43,106,614$ 48,327,486$
Assigned 23,738,380 27,619,480 25,415,708 24,337,823 25,474,636 31,173,285 34,939,313 44,680,442 47,855,975 44,316,628
Unassigned (139,064) (248,979) (6,353)(9,453)(2,312,520) (451,068) (1,850,787) 961,694 (1,573,428) (41,269)
Total all other governmental funds 42,908,399$ 55,427,399$ 55,517,818$ 46,082,202$ 48,838,446$ 55,922,597$ 59,725,411$ 80,863,686$ 89,389,161$ 92,602,845$
Source: Fund Financial Statements
CITY OF COSTA MESA, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(138)
TABLE 4
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes 99,349,202$ 99,464,729$ 110,884,896$ 123,969,423$ 114,463,599$ 122,138,588$ 141,919,878$ 151,484,175$ 153,486,531$ 159,250,141$
Licenses and permits 2,983,081 2,933,305 3,837,564 5,104,022 5,496,049 4,368,740 7,331,252 6,342,557 5,982,422 6,809,704
Fines and forfeits 1,609,134 1,352,682 1,612,230 2,468,993 2,067,884 1,061,346 1,176,357 1,266,768 1,422,437 1,474,419
Intergovernmental 17,612,288 23,205,265 10,558,481 16,646,740 15,006,292 39,855,634 18,077,452 26,254,095 26,518,073 33,073,626
Charges for services 6,668,445 5,909,112 9,553,421 9,990,454 9,489,827 7,309,872 9,030,556 10,155,524 10,568,751 12,222,740
Rental 3,336,053 3,289,222 3,404,676 3,479,527 3,566,255 4,773,662 4,815,577 4,722,383 5,396,192 5,469,828
Investment income (loss)1,775,765 420,561 244,606 3,616,606 3,394,398 (37,016) (2,767,803) 1,516,600 5,731,450 7,056,107
Miscellaneous 1,679,917 2,170,215 2,081,739 3,226,941 2,161,633 1,410,996 1,545,970 1,615,437 1,650,312 1,913,536
Total revenues 135,013,885 138,745,091 142,177,613 168,502,706 155,645,937 180,881,822 181,129,239 203,357,539 210,756,168 227,270,101
Expenditures
General government 25,102,067 26,518,266 29,048,355 29,219,530 30,808,182 31,851,632 33,567,585 36,619,271 43,466,720 52,783,983
Protection of persons and
property 64,426,376 66,141,703 70,198,327 78,762,212 82,939,180 84,027,648 90,698,363 98,044,159 104,825,629 113,183,368
Community programs 8,019,356 9,410,168 10,888,393 13,265,742 14,297,137 18,578,311 16,267,400 19,397,579 25,158,889 19,284,556
Public services 19,836,633 21,680,495 42,305,565 50,429,478 20,506,675 27,033,542 20,962,292 17,514,252 20,328,775 32,878,565
Debt service:
Principal 2,650,000 2,755,000 4,070,000 1,795,261 1,815,392 1,890,391 2,202,563 2,172,370 2,486,391 2,609,726
Interest 1,109,037 992,383 1,041,853 1,298,315 1,230,958 1,155,360 1,095,786 999,864 941,676 897,526
Bond issuance costs - - 344,858 - - - - -
Payment to refunded
bond escrow agent - - 2,302,225 - - - - -
Total expenditures 121,143,469 127,498,015 160,199,576 174,770,538 151,597,524 164,536,884 164,793,989 174,747,495 197,208,080 221,637,724
Excess of revenues over
(under) expenditures 13,870,416 11,247,076 (18,021,963) (6,267,832) 4,048,413 16,344,938 16,335,250 28,610,044 13,548,088 5,632,377
Other financing sources
(uses):
Subcription proceeds - - - - - - - - - 1,036,210
Transfers in 12,852,940 16,058,019 12,370,819 15,899,228 10,811,227 26,619,517 13,116,263 22,212,189 15,195,375 11,121,435
Transfers out (12,852,940) (19,658,019) (18,063,009) (21,148,507) (11,936,227) (35,851,711) (21,365,113) (28,422,851) (18,892,041) (13,977,435)
Issuance of debt - - 29,735,000 153,914 - - - -
Premium on debt issue - - 3,694,172 - - - - - - -
Payment to bond
escrow agent - - (14,530,520) - - - - - - -
Total other financing
sources (uses)- (3,600,000) 13,206,462 (5,095,365) (1,125,000) (9,232,194) (8,248,850) (6,210,662) (3,696,666) (1,819,790)
Net change in fund
balances 13,870,416$ 7,647,076$ (4,815,501)$ (11,363,197)$ 2,923,413$ 7,112,744$ 8,086,400$ 22,399,382$ 9,851,422$ 3,812,587$
Debt service as a percentage
of noncapital expenditures 3.38%3.18%5.64%2.21%2.19%2.10%2.27%2.03%1.86%1.74%
Source: Fund Financial Statements
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
CITY OF COSTA MESA, CALIFORNIA
(139)
TABLE 5
Transient Proposition
Fiscal Years Sales Property Occupancy Franchise Business 172 Total
2016 57,593,561 26,168,612 8,622,505 5,060,402 973,521 930,601 99,349,202
2017 56,556,867 27,435,427 8,924,854 4,593,631 918,928 1,035,022 99,464,729
2018 54,656,183 40,458,402 8,819,617 4,965,515 919,450 1,065,729 110,884,896
2019 64,902,009 42,873,901 8,595,417 5,042,551 1,093,154 1,126,008 123,633,040
2020 55,866,831 45,548,585 6,587,224 4,822,964 1,663,100 1,102,506 115,591,210
2021 63,738,411 47,891,698 4,282,802 4,895,574 1,227,843 1,151,953 123,188,281
2022 77,165,533 49,706,079 8,366,278 5,318,541 1,468,199 1,467,173 143,491,803
2023 79,851,289 53,442,949 9,830,790 6,094,232 1,907,551 1,396,896 152,523,707
2024 76,400,160 56,465,749 10,150,696 6,542,802 3,902,514 1,396,143 154,858,064
2025 78,244,492 59,317,656 9,962,421 6,637,150 5,060,510 1,392,219 160,614,448
Source: Required Supplementary Information
CITY OF COSTA MESA, CALIFORNIA
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(140)
TABLE 6
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Apparel stores 727,073$ 754,197$ 714,478$ 814,593$ 835,594$ 569,776$ 1,031,162$ 1,167,167$ 1,096,912$ 1,062,460$
General merchandise 618,702 582,500 565,635 534,747 512,500 315,884 515,117 553,045 547,467 468,976
Food stores 103,225 90,941 88,385 90,178 91,470 92,557 91,147 91,789 99,534 116,767
Eating and drinking
establishments 469,465 496,041 515,683 535,744 556,504 405,696 589,711 681,847 698,632 728,072
Building materials 205,343 224,225 236,497 242,750 251,846 251,117 314,137 351,411 320,238 315,552
Auto dealers and supplies 858,187 924,641 1,006,804 1,153,396 1,230,062 1,149,598 1,380,887 1,402,985 1,476,879 1,378,368
Service stations 215,707 190,969 200,170 235,572 232,911 161,495 242,199 315,387 274,997 251,408
Other retail stores 1,047,009 1,050,063 1,116,930 1,178,337 1,165,897 943,056 1,320,071 1,509,430 1,491,955 1,441,191
All other outlets 1,112,851 1,206,829 1,157,415 1,269,997 1,402,675 1,447,700 1,697,098 1,809,139 1,865,556 1,803,763
5,357,562$ 5,520,406$ 5,601,997$ 6,055,314$ 6,279,459$ 5,336,879$ 7,181,529$ 7,882,200$ 7,872,170$ 7,566,557$
City direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00% 1.00%1.00%1.00%
Source: State of California Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office and the HdL Companies
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
(in thousands of dollars)
CITY OF COSTA MESA, CALIFORNIA
Calendar Years
(141)
TABLE 7
PercentagePercentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Category Sales Rank Sales Sales Rank Sales
All other outlets 1,803,763$ 1 23.84%1,112,851$ 1 20.77%
Other retail stores 1,441,191 2 19.05%1,047,009 2 19.54%
Auto dealers and supplies 1,378,368 3 18.22%858,187 3 16.02%
Apparel stores 1,062,460 4 14.04%727,073 4 13.57%
Eating and drinking establishments 728,072 5 9.62%469,465 6 8.76%
General merchandise 468,976 6 6.20%618,702 5 11.55%
Building materials 315,552 7 4.17%205,343 8 3.83%
Service stations 251,408 8 3.32%215,707 7 4.03%
Food stores 116,767 9 1.54%103,225 9 1.93%
,,,,
Source: State of California Board of Equalization, California Department of Taxes and Fees Administration,
State Controller's Office and the HdL Companies
CITY OF COSTA MESA, CALIFORNIA
PRINCIPAL SALES TAX REMITTERS BY CATEGORY
CURRENT YEAR AND NINE YEARS AGO
2024 2015
(142)
TABLE 8
City Orange State of Total
Local County California Sales Tax
Fiscal Years Rate Rate Rate Rate
2016 1.00 0.50 6.50 8.00
2017 1.25 0.50 6.00 7.75
2018 1.25 0.50 6.00 7.75
2019 1.25 0.50 6.00 7.75
2020 1.25 0.50 6.00 7.75
2021 1.25 0.50 6.00 7.75
2022 1.25 0.50 6.00 7.75
2023 1.25 0.50 6.00 7.75
2024 1.25 0.50 6.00 7.75
2025 1.25 0.50 6.00 7.75
Source: State of California Board of Equalization
CITY OF COSTA MESA, CALIFORNIA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
(143)
TABLE 9
Fiscal Year Taxes Levied Collected for
Ended for the PercentageSubsequent Percentage
June 30, Fiscal Year Amount of Levy Years (2)Amount of Levy (1)
2016 24,960,369 24,222,713 97.04% 227,104 24,449,817 97.95%
2017 26,330,538 25,640,344 97.38% 216,963 25,857,308 98.20%
2018 27,825,846 27,272,459 98.01% 198,624 27,471,083 98.73%
2019 29,820,941 29,186,740 97.87% 196,710 29,383,450 98.53%
2020 31,300,931 30,714,805 98.13% 214,204 30,929,009 98.81%
2021 32,769,949 32,203,394 98.27% 294,030 32,497,424 99.17%
2022 33,917,865 33,032,650 97.39% 298,304 33,330,954 98.27%
2023 37,663,468 36,812,087 97.74% 268,998 37,081,085 98.45%
2024 38,940,043 38,085,358 97.81% 315,831 38,401,189 98.62%
2025 40,950,437 40,023,594 97.74% 361,547 40,385,141 98.62%
(1)The Percentage of Levy may exceed 100% if the amounts collected for subsequent years exceed the delinquency.
(2)The County of Orange only makes this data available by collection year. Data by levy year is not available.
Source: Orange County Assessor 2024/2025 Combined Tax Rolls
CITY OF COSTA MESA, CALIFORNIA
Fiscal Year of the Levy Total Collections to Date
Collected within the
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(144)
TABLE 10
Less:Total Taxable Estimated Taxable Assessed
Residential Commercial Industrial Miscellaneous Tax-Exempt Assessed Total Direct Actual Taxable Value as a Percentage
Fiscal Years Property Property Property Property Property Value Tax Rate Value
(1)of Actual Taxable Value
2016 10,456,976,124 3,766,616,981 1,190,970,066 1,118,171,362 -16,532,734,533 0.15038% 16,532,734,533 100.00%
2017 11,033,602,522 3,918,807,590 1,336,961,702 1,180,683,099 -17,470,054,913 0.15014% 17,470,054,913 100.00%
2018 11,685,011,850 4,096,390,455 1,500,236,782 1,222,877,713 -18,504,516,800 0.15009% 18,504,516,800 100.00%
2019 12,557,043,739 4,473,583,090 1,646,413,988 1,223,132,784 -19,900,173,601 0.15002% 19,900,173,601 100.00%
2020 13,389,240,208 4,687,990,535 1,744,806,502 1,290,509,110 -21,112,546,355 0.14848% 21,112,546,355 100.00%
2021 14,143,690,438 4,858,631,950 1,822,103,130 1,295,199,231 -22,119,624,749 0.14856% 22,119,624,749 100.00%
2022 14,753,436,539 4,866,777,961 1,875,392,912 1,244,087,188 -22,739,694,600 0.14824% 22,739,694,600 100.00%
2023 15,853,782,350 5,070,138,124 2,052,311,019 1,390,912,662 -24,367,144,155 0.15103% 24,367,144,155 100.00%
2024 17,022,360,496 5,352,310,983 2,214,212,560 1,426,931,653 -26,015,815,692 0.14476% 26,015,815,692 100.00%
2025 18,100,710,527 5,455,410,264 2,365,280,527 1,623,354,452 -27,544,755,770 0.14494% 27,544,755,770 100.00%
(1)In 1978 the voters of the State of California passed Proposition 13 which limited 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 of 2%). With few exceptions, property is only reassessed as a result of new
construction or at the purchase price (market value) or economic value 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. Therefore, the estimated actual taxable value equals the total taxable assessed
value.
Source: HdL Coren & Cone, Orange County Assessor 2015/2016 - 2024/2025 Combined Tax Rolls.
CITY OF COSTA MESA, CALIFORNIA
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(145)
TABLE 11
Total County of School Special
Basic Direct Orange District Districts
Fiscal Year Rate Rate
(1)Debt Debt Debt
2016 0.14879 0.15038 0.36649 0.48300 0.00515
2017 0.14879 0.15014 0.36649 0.48300 0.00515
2018 0.14879 0.15009 0.36649 0.48300 0.00515
2019 0.14879 0.15002 0.36649 0.48300 0.00515
2020 0.14879 0.14848 0.36649 0.48300 0.00515
2021 0.14879 0.14856 0.36649 0.48300 0.00515
2022 0.14879 0.14824 0.36649 0.48300 0.00515
2023 0.14879 0.15103 0.36649 0.48300 0.00515
2024 0.14879 0.14476 0.36649 0.48300 0.00515
2025 0.14879 0.14494 0.36649 0.48300 0.00865
(1)Per the Government Finance Officers Association, the definition of "total direct rate" is as follows:
"The weighted average of all individual rates applied by the government preparing the statistical section
The "total direct rate" for the City of Costa Mesa is a weighted average derived by dividing total City
revenue by taxable assessed value.
Source: HdL Coren & Cone, Orange County Assessor 2015/2016 - 2024/2025 Combined Tax Rolls.
City Direct Rates Overlapping Rates
CITY OF COSTA MESA, CALIFORNIA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(146)
TABLE 12
PercentagePercentage
of Total City of Total City
Property Property Property Property
Tax Tax Tax Tax
Taxpayer Revenue Rank Revenue Revenue Rank Revenue
The Irvine Company LLC 759,111$ 1 1.90%436,418$ 1 1.53%
South Coast Plaza 534,700 2 1.34%414,905 3 1.45%
PR II MCC South Coast Property Owner 415,804 3 1.04%398,970 4 1.40%
Advanced Costa Mesa 23 LLC 337,261 4 0.84%
United Dominion Realty LP 335,387 5 0.84%285,290 6 1.00%
Automobile CLUB of Southern CA 271,486 6 0.68%
580 Anton Woner LLC 259,725 7 0.65%
LMC Costa Mesa Holdings LLC 245,984 8 0.62%
The Press Owner LLC 225,121 9 0.56%
Casden Lakes LP 216,047 10 0.54%
Behringer Harvard Pacifica Proj Owner 271,809 7 0.95%
BRE LLC 271,608 8 0.95%
Trust Costa Mesa Courtyards LLC 419,807 2 1.47%
RREEF America Reit II Corporation
1901 Newport LLC Royal Street 336,284 5 1.18%
WWG TSQ Owner LLC 269,979 9 0.94%
Marjack LLC Irvine Company LLC 226,883 10 0.79%
Total 3,600,626$ 9.02% 3,331,952$ 11.65%
Source: HdL Coren & Cone, Orange County Assessor 2024/2025 & 2015/2016 Combined Tax Rolls.
CITY OF COSTA MESA, CALIFORNIA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2024-2025 2015-2016
(147)
TABLE 13
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General bonded debt outstanding
General obligation bonds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Redevelopment bonds (1)- - - - ------
Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Percentage of taxable
assessed value 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%0.0000%0.0000%
Per capita -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Less: Amounts set aside to
repay general debt - - - - ------
Total net debt applicable to
debt limit - - - - ------
Legal debt limit
(3.75% of Assessed Value) 669,713,004 705,606,516 743,516,945 796,252,660 842,737,426 881,515,407 907,985,504 968,274,281 1,035,775,785 1,096,106,704
Legal debt margin 669,713,004 705,606,516 743,516,945 796,252,660 842,737,426 881,515,407 907,985,504 968,274,281 1,035,775,785 1,096,106,704
Legal debt margin as a
percentage of the debt limit 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%100.00%100.00%
(1)As of February 1, 2012, the Successor Agency to the former Costa Mesa Redevelopment Agency is responsible for the outstanding Redevelopment debt.
Source: City of Costa Mesa Finance Department and Orange County Assessor 2024/2025 combined tax rolls
RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
CITY OF COSTA MESA, CALIFORNIA
FISCAL YEARS
(148)
TABLE 14
Percentage
Fiscal Year of Total Certificates Lease Total Percentage
Ended Taxable Per Revenue of Loan Lease SBITA
(2)Notes Purchase Primary of Personal Per
June 30, Assessed Value Capita Bonds
(1)Participation Payable Payable Payable Payable Financing Government Income Capita
2016 0.0000% - 4,600,000 19,775,000 - - 24,375,000 0.64% 732.66
2017 0.0000% - 3,325,000 18,295,000 - - 21,620,000 0.57% 649.85
2018 0.0000% - 34,103,345 - - - 34,103,345 0.77% 991.21
2019 0.0000% - 32,170,580 - 143,653 - 32,314,233 0.78% 906.39
2020 0.0000% - 30,222,813 - 128,261 - 30,351,074 0.69% 788.54
2021 0.0000% - 28,200,046 - 112,870 1,472,402 29,785,318 0.64% 721.65
2022 0.0000% - 26,102,279 - 97,479 1,336,909 27,536,667 0.55% 613.11
2023 0.0000% - 24,124,512 - 82,086 1,198,931 25,405,529 0.48% 528.74
2024 0.0000% - 22,056,745 - 66,693 740,267 3,575 3,415,603 2,600,273 28,883,156 0.48% 526.05
2025 0.0000% - 19,893,978 - 51,302 505,726 694,991 2,917,121 2,234,016 26,297,134 0.42% 463.50
(1)Amount includes the unamortized Bond Premium.
(2)Subscription-Based Information Technology Arrangements
Source: City of Costa Mesa Finance Department
CITY OF COSTA MESA, CALIFORNIA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Other Governmental Activities Debt
(149)
TABLE 15
Estimated
Share of
Estimated Direct and
Debt PercentageOverlapping
Governmental Unit Outstanding Applicable (2)Debt
Overlapping Debt
Newport Mesa Unified School District 206,519,744$ 26.092% 53,885,132$
Coast Community College District 854,816,084 13.423% 114,741,963
Santa Ana Unified School District 401,142,561 3.641% 14,605,601
Santa Ana Unified School District Certificates of Participation 38,301,736 3.641%1,394,566
Rancho Santiago Community College District 132,145,756 1.569%2,073,367
Rancho Santiago Community College District SFID No. 1 138,730,000 2.954%4,098,084
Metropolitan Water District 17,155,000 0.676%115,968
OC General Fund Obligation 429,065,000 3.396% 14,571,047
OC Board of Education Certificate of Participation 9,120,000 3.396%309,715
Coast Community College District General Fund Obligations 1,125,000 13.423%151,009
Total Overlapping Debt 2,228,120,881 205,946,451
City Direct Debt
Costa Mesa Public Financing Authority 2006 Revenue Refunding Bonds/
Costa Mesa Community Facilities District No. 91-1 -$ 100%-$
City of Costa Mesa General Fund Obligations (1)19,893,978 100% 19,893,978
Financed Lease 2,234,016 100%2,234,016
Lease Payable 505,726 100%505,726
Loan Payable 51,302 100%51,302
SBITA 694,991 100%694,991
Note Payable 2,917,121 100%2,917,121
Total Direct Debt 26,297,134 26,297,134
Total Direct and Overlapping Debt 232,243,585$
(1)See Note 8 in Finance Statement for more information about the City's direct debt. The amount included the
unamortized Bond Premium $2,548,978
(2)Overlapping governments are those that coincide with the geographic boundaries of the city. The percentage
of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by
determining the portion of another governmental unit’s taxable assessed value that is within the city’s boundaries and dividing
it by each unit’s total taxable assessed value.
Source: California Municipal Statistics, Inc., Orange County Assessor and Auditor Combined 2024/25 Lien Data Tax Rolls.
AS OF JUNE 30, 2025
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CITY OF COSTA MESA, CALIFORNIA
(150)
TABLE 16
Personal
Income Per Capita Orange County
(thousands Personal Median School Unemployment
Year Population (2)of dollars)Income (1)Age (1)Enrollment (3)Rate (4)
2016 114,603 3,722,083 32,478 34 21,392 4.40%
2017 114,044 3,794,132 33,269 34 20,801 3.80%
2018 115,296 3,966,839 34,406 35 20,853 3.30%
2019 115,830 4,129,505 35,651 35 20,316 3.00%
2020 114,778 4,417,883 38,490 35 20,008 13.60%
2021 112,780 4,654,963 41,274 35 20,173 6.50%
2022 111,394 5,003,062 44,913 36 17,962 5.40%
2023 111,183 5,342,262 48,049 36 17,816 3.70%
2024 109,423 6,007,994 54,906 36 17,768 4.00%
2025 110,321 6,259,245 56,736 37 17,635 4.50%
Source:(1) - City of Costa Mesa Finance Department / and The HdL Companies
(2)- California State Department of Finance
(3)- Newport-Mesa Unified School District.
(4)- State of California Employment Development Department as of June 30th each year.
CITY OF COSTA MESA, CALIFORNIA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
(151)
TABLE 17
PercentagePercentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Experian Information Solutions, Inc.3,700 1 5.73%3,998 1 6.53%
Coast Community College District 2,900 2 4.49%3,700 2 6.04%
Anduril Industries 2,500 3 3.87%2,900 3 4.73%
Orange Coast Community College 1,900 4 2.94%1,900 5 3.10%
California State Hospital-Fairview Dev. Ctr. 1,215 5 1.88% 2,516 4 4.11%
Automobile Club Enterprises 1,200 6 1.86%
Nationsbenefit LLC 740 7 1.15%800 8 1.31%
Monroe Operations LLC 681 8 1.05%600 10 0.98%
International Bus Mechanic Corp.675 9 1.05%1,500 6 2.45%
Deloitte & Touche LLP 630 10 0.98%1,184 7 1.93%
700 9 1.14%
Source: City of Costa Mesa Department of Economic Development, Dunn & Bradstreet, State of California Employment
Development Department
CITY OF COSTA MESA, CALIFORNIA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2024-2025 2015-2016
(152)
TABLE 18
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
Number of residents served via
public services programs 785 750 700 700 700 700 1,042 1,123 1,058 973
Accounts payable checks issued 9,182 9,031 8,734 8,857 8,604 7,269 7,079 7,347 7,816 7,627
Total printshop photocopies produced 1,619,784 1,749,460 1,996,486 1,699,007 1,116,892 1,250,000 1,250,000 1,250,000 1,000,000 1,000,000
Protection of persons and property
Police protection
911 Emergency/Public Safety calls (3)N/A 1,000 1,029 882 876 847 1,027 1,248 954 46,398
Calls responded to within 5 minutes N/A 66%72%75%72%76%96% 96%80%96%
Assigned theft cases (3)900 1,200 N/A N/A N/A N/A 2,171 1,597 3,442 2,880
Percentage of theft cases cleared 40%60%74%64%52%31%59% 59%36%25%
Assigned burglary cases 400 200 N/A N/A N/A N/A 897 1,097 1,056 961
Percentage of burglary cases
cleared 40% 70% 69% 64% 50% 38% 54% 38% 37% 23%
Case and arrest reports processed 14,584 19,310 19,319 18,382 19,079 18,794 22,135 20,050 18,270 18,556
Fire protection
Number of calls for service 12,955 12,721 12,936 10,572 10,637 10,073 11,249 12,063 11,815 11,821
Fire related responses 238 271 218 261 245 246 222 251 261 253
Emergency medical aid responses 9,366 9,374 9,603 9,639 9,454 8,960 10,055 10,746 10,439 10,459
Community Programs
Number of Recreation program
enrollments processed (1)N/A N/A N/A N/A N/A N/A 6,400 7,700 8,000 11,000
Over-the-counter plan checks
reviewed within five working days (2)240 240 522 630 630 630 N/A N/A N/A N/A
Number of inspections performed (1)29,100 31,040 29,585 29,100 18,966 28,012 35,000 37,000 32,000 25,000
Complaint response within two
working days (2)90%90%90%90%90%90% 100% 100% N/A N/A
Public services
Number of trees trimmed annually 7,750 6,250 6,250 6,250 8,750 5,291 3,317 3,611 5,105 8,430
Number of catch basins cleaned
annually 1,165 1,115 1,100 1,100 1,165 1,165 1,165 1,165 1,165 1,165
(1)Previous statistical Performance Measures and Workload Indicators have been revised to reflect on-line software implementation, current Department goals and City Council priorities
(2)Performance Measures and Workload Indicators for these programs are no longer tracked.
(3)In November 2023 the department switched tracking methods from UCR (Part 1 and 2 Crimes) to NIBRS Federal Reporting Standards (Group A & B Offenses). Method not comparable to prior years
Source: City of Costa Mesa Finance Department
LAST TEN FISCAL YEARS
Fiscal Years
CITY OF COSTA MESA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION/PROGRAM
(153)
TABLE 19
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
City Council 6.0 6.0 6.0 8.0 10.5 10.5 10.5 10.5 8.0 8.0
City Manager's Office 33.30 37.59 39.74 41.60 36.48 37.00 37.88 47.95 51.32 57.32
Financial Services 21.71 21.50 22.25 22.50 22.00 23.00 23.00 24.00 25.00 26.75
Information Technology 12.50 12.94 13.16 12.16 13.70 15.50 17.50 20.50 22.00 22.00
Administrative Services - -- - - - - -
Development Services 43.50 46.23 45.95 44.80 48.79 51.64 52.64 53.34 55.34 58.34
Parks and Community
Services 70.70 74.00 80.54 87.23 96.71 95.67 96.73 88.16 88.82 88.57
Protection of Persons and Property
Police Protection 232.63 234.46 235.60 233.76 235.17 235.86 236.36 240.36 254.86 256.75
Fire Protection 87.25 87.50 94.00 94.00 95.00 96.25 97.25 98.75 99.25 99.25
Public Works 81.77 84.82 77.47 72.05 76.70 76.50 80.00 81.25 85.50 85.00
589.36 605.04 614.71 616.10 635.05 641.92 651.86 664.81 690.09 701.98
Source: City of Costa Mesa Finance Department
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
CITY OF COSTA MESA, CALIFORNIA
LAST TEN FISCAL YEARS
(154)
TABLE 20
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police
Stations/substations 2 2 2 2 2 2 2 2 2 2
Fire
Fire stations 6 6 6 6 6 6 6 6 6 6
Other public works
Streets (lane miles)529.0 529.0 535.6 535.6 535.6 540.0 522.0 522.0 522.0 522.0
Streetlights 6,674 6,674 6,674 6,881 6,869 6,869 6,882 6,882 6,904 6,911
Traffic signals 124 124 125 126 127 128 131 131 131 131
Parks and recreation
Acres of open space 1,957 1,957 1,957 1,957 2,067 2,067 2,067 2,067 2,067 2,067
Park sites 31 31 31 31 32 32 30 30 30 30
Baseball/softball diamonds 6 6 6 6 6 6 6 6 6 6
Soccer/football fields 10 10 10 10 6 6 6 6 6 6
Community centers 4 3 3 3 4 4 3 3 3 3
Wastewater (miles)
Sanitary sewers 325.7 325.7 325.7 325.7 325.7 325.7 325.7 325.7 325.7 325.7
Storm sewers 45.5 45.5 45.5 45.5 45.5 64.7 45.5 45.5 45.5 45.5
Source: City of Costa Mesa Finance Department
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
CITY OF COSTA MESA, CALIFORNIA
LAST TEN FISCAL YEARS
Fiscal Years
(155)