HomeMy WebLinkAbout2025-11-13 - Financing Authority Agenda Packet
AGENDA
YORBA LINDA WATER DISTRICT
FINANCING AUTHORITY REGULAR MEETING
Thursday, November 13, 2025, 8:30 AM
1717 E Miraloma Ave, Placentia CA 92870
1. PARTICIPATION INSTRUCTIONS
This meeting will be held in person. For public convenience, the meeting can also be accessed via internet-based service
or telephone as indicated below. For questions regarding participation, please call the Board Secretary at 714-701-3020.
Computer/Mobile Device: https://us06web.zoom.us/j/83497645138
Telephone: 669-444-9171 or 669-900-6833
Meeting ID: 834 9764 5138
2. CALL TO ORDER
3. ROLL CALL
3.1. NOTE: This meeting will be called to order following consideration of Item No. 9.1.
on the agenda for the Regular Board of Directors Meeting on Thursday, November
13, 2025 at 8:30 AM.
4. PUBLIC COMMENTS
Any individual wishing to address the Board (or Committee) is requested to identify themselves and state the matter on
which they wish to comment. If the matter is on the agenda, the Chair will recognize the individual for their comment
when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to three
minutes and must be related to matters of public interest within the jurisdiction of the Water District. (GC 54954.3)
5. CONSENT CALENDAR
This portion of the agenda is for items considered routine and may be approved by a single motion. There will be no
discussion of these items unless a member of the Board, staff, or public requests separate consideration.
5.1. Minutes of Financing Authority Meeting Held December 12, 2024
Recommendation: That the Board of Directors approve the minutes as presented.
6. ACTION CALENDAR
This portion of the agenda is for items where staff presentations and Board (or Committee) discussions are needed prior
to formal action.
6.1. Financing Authority Audited Annual Financial Report for Fiscal Year Ended June
30, 2025
Recommendation: That the Board of Directors receive and file the Yorba Linda
Water District Financing Authority Audited Annual Financial Report for Fiscal Year
Ended June 30, 2025.
7. ADJOURNMENT
Items Distributed to the Board Less Than 72 Hours Prior to the Meeting
Non-exempt materials related to open session agenda items that are distributed to a majority of the Board of Directors (or
Committee Members) less than seventy-two (72) hours prior to the meeting will be available for public inspection in the lobby of the
District’s Administrative building located at 1717 E Miraloma Ave, Placentia CA 92870 during regular business hours. When
practical, these materials will also be posted on the District’s website at https://ylwd.com/. (GC 54957.5)
Accommodations for the Disabled
Requests for disability-related modifications or accommodations, including auxiliary aids or services, required for participation in
the above-posted meeting should be directed to the Board Secretary at (714) 701-3020 at least 24 hours in advance. (GC
54954.2(a))
Page 1 of 21
ITEM NO. 5.1.
AGENDA REPORT
MEETING DATE: November 13, 2025
TO: Board of Directors
FROM: Mark Toy, General Manager
STAFF CONTACTS: Doug Davert, Assistant General Manager
Annie Alexander, Senior Executive Assistant / Board Secretary
SUBJECT: Minutes of Financing Authority Meeting Held December 12, 2024
RECOMMENDATION:
That the Board of Directors approve the minutes as presented.
ATTACHMENTS:
1. 2024-12-12 - Minutes - FA
Page 2 of 21
Minutes of the Financing Authority Regular Meeting Held December 12, 2024 at 7:30 AM 1
FA-2024-XXX
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCING AUTHORITY REGULAR MEETING
Thursday, December 12, 2024, 7:30 AM
1717 E Miraloma Ave, Placentia CA 92870
1. PARTICIPATION INSTRUCTIONS
Were included on the agenda.
2. CALL TO ORDER
The meeting was called to order at 7:48 AM.
DIRECTORS PRESENT STAFF PRESENT
Brett R. Barbre Mark Toy, General Manager
Trudi DesRoches Doug Davert, Assistant General Manager
Gene Hernandez John DeCriscio, Operations Manager
Tom Lindsey Christine McIlrevey, Finance Manager
Lori Thompson, Human Resources and Risk Manager
Rosanne Weston, Engineering Manager
Reza Afshar, Principal Engineer
Annie Alexander, Board Secretary
Joanna Gonzalez, Public Affairs Officer
Freddie Ojeda, Operations Superintendent
ALSO PRESENT
Andrew Gagen, General Counsel, Kidman Gagen Law LLP
3. PUBLIC COMMENTS (None)
4. CONSENT CALENDAR
Director Barbre made a motion, seconded by Director DesRoches, to approve the
Consent Calendar. Motion carried 4-0-0-0.
4.1. Affirmation of Officers for the Financing Authority
Recommendation: That the Board of Directors affirm the individuals
designated as Chair, Vice Chair, Executive Director, Treasurer, and
Secretary of the Yorba Linda Water District Financing Authority in
accordance with the Joint Exercise of Powers Agreement between the
District and the California Municipal Finance Authority.
Page 3 of 21
Minutes of the Financing Authority Regular Meeting Held December 12, 2024 at 7:30 AM 2
FA-2024-XXX
4.2. Minutes of the Financing Authority Regular Meeting Held December 12,
2023
Recommendation: That the Board of Directors approve the minutes as
presented.
5. ADJOURNMENT
The meeting was adjourned at 7:49 AM.
Annie Alexander
Board Secretary
Page 4 of 21
ITEM NO. 6.1.
AGENDA REPORT
MEETING DATE: November 13, 2025
TO: Board of Directors
FROM: Mark Toy, General Manager
STAFF CONTACTS: Christine McIlrevey, Finance Manager
Sophia Phuong, Accounting Supervisor
SUBJECT: Financing Authority Audited Annual Financial Report for Fiscal Year
Ended June 30, 2025
RECOMMENDATION:
That the Board of Directors receive and file the Yorba Linda Water District Financing Authority
Audited Annual Financial Report for Fiscal Year Ended June 30, 2025.
BACKGROUND:
Staff is pleased to present the Board of Directors with Yorba Linda Water District Financing
Authority's Audited Annual Financial Report for the fiscal year ended June 30, 2025.
LSL, LLP, the District's external auditing firm, has completed its annual audit of the Yorba Linda
Water District Financing Authority for the fiscal year ended June 30, 2025. Mr. Riley Greenlee, Senior
Manager in LSL's Assurance & Advisory department, will be available to present the annual report
and respond to any questions.
ATTACHMENTS:
1. YLWD Financing Authority Annual Report for FY 2024-25
Page 5 of 21
LSL•000
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YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
(A COMPONENT UNIT OF YORBA LINDA WATER DISTRICT)
FOR THE YEAR ENDED JUNE 30, 2025 FINANCIAL STATEMENTS
Focused
on YOU
WWW.LSLCPAS.COM
Page 6 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
(A COMPONENT UNIT OF YORBA LINDA WATER DISTRICT)
Financial Statements
For the Year Ended June 30, 2025
Page 7 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
(A COMPONENT UNIT OF YORBA LINDA WATER DISTRICT)
Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Page
Number
IndependentAuditors' Report.............................................................................................................................. 1
Management's Discussion and Analysis.............................................................................................................4
Basic Financial Statements
Statementof Net Position .............................................................................................................................6
Statement of Revenues, Expenses, and Changes in Net Position...............................................................7
Statementof Cash Flows..............................................................................................................................8
Notes to Financial Statements......................................................................................................................9
OTHER REPORT
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards...............................................................................12
Page 8 of 21
LS •Go•
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INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Yorba Linda Water District Financing Authority
Placentia, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of Yorba Linda Water District Financing Authority
(the "Authority"), as of and for the year ended June 30, 2025, and the related notes to the 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 financial position
of the Authority as of June 30, 2025, and the changes in its financial position and cash flows 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
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
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Authority 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
Yorba Linda Water District Financing Authority Financial Statements
As discussed in Note 1, the financial statements of the Authority are intended to present the financial position, the
changes in financial position, and, where applicable, its cash flows of only that portion of the District that is
attributable to the transactions of the Authority. They do not purport to, and do not, present fairly the financial
position of the District, as of June 30, 2025, the changes in its financial position, or,where applicable, its cash flows
for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Our opinion is 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.
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Page 9 of 21
LSL:o00•••
To the Board of Directors
Yorba Linda Water District Financing Authority
Placentia, California
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with generally accepted auditing standards 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 generally accepted auditing standards 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 Authority'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.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis as listed on the table of contents, be presented to supplement the basic financial statements. Such
information is the responsibility of management and,although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America,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.
2
Page 10 of 21
LSL:* *0•••
To the Board of Directors
Yorba Linda Water District Financing Authority
Placentia, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 17, 2025, on our consideration of the District's internal control over the Authority's 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 District's internal control over the Authority's financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the District's internal
control over the Authority's financial reporting and compliance.
LSL, L L P
Irvine, California
October 17, 2025
3
Page 11 of 21
YORBA LINDA WATER DISTIRCT FINANCING AUTHORITY
Management's Discussion and Analysis
For the Year Ended June 30, 2025
This section of the Authority's annual financial report presents our analysis of the Authority's financial performance
during the fiscal year that ended on June 30, 2025. Please read it in conjunction with the financial statements,which
follow this section.
FINANCIAL HIGHLIGHTS
The Authority's net position did not change, as the revenue and interest earned on the money market equaled the
expenditures and interest expense on the bonds payable.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the Yorba Linda Water District Financing
Authority's basic financial statements. The Authority's basic financial statements consist of two components:
(1)financial statements and (2)notes to the financial statements.The Authority is a self-supporting entity and follows
the enterprise fund reporting. Accordingly, the financial statements are presented using the accrual basis of
accounting.
FINANCIAL ANALYSIS OF THE AUTHORITY
Our analysis of the Authority begins on page 6 of the financial statements. The goal of the Authority is to have the
installment contract and interest income receivables remain equal to the amount of outstanding debt in order that
its proceeds are available to pay the debt. Thus, net position of the Authority (the difference between the interest
income received and the unpaid debt) should be zero. Since the Authority is a financing entity, all of the revenues
and principal collected on the investment in Yorba Linda Water District's Financing Authority's Revenue Bonds,
Series 2017A and Series 2022A are used to pay the interest and principal on the Bonds resulting in no change in
net position.
NET POSITION
To begin our analysis a summary of the Authority's Statement of Net Position as June 30, 2025 is as follows:
Fiscal Year Fiscal Year
2025 2024
ASSETS:
Interest receivable $ 623,373 $ 643,373
Installment contrct receivable:
Due in one year 1,675,000 1,600,000
Due in more than one year 51,380,000 53,055,000
TOTAL ASSETS 53,678,373 55,298,373
LIABILITIES:
Interest payable 623,373 643,373
Long-term liabilities
Due in one year 1,675,000 1,600,000
Due in more than one year 51,380,000 53,055,000
TOTAL LIABILITIES 53,678,373 55,298,373
NET POSITION $ - $ -
REVENUES, EXPENSES AND CHANGES IN NET POSITION
The interest income of $2,513,494 and $2,591,356 was used to pay the interest expense on the bonds as of
June 30, 2025 and June 30, 2024, respectively.
4
Page 12 of 21
YORBA LINDA WATER DISTIRCT FINANCING AUTHORITY
Management's Discussion and Analysis
For the Year Ended June 30, 2025
BUDGETARY HIGHLIGHTS
The Authority's Board of Directors is not required to adopt a budget.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets -The Authority does not own any capital assets.
At year-end, the Authority had $53,055,000 and $54,655,000 in long-term debt as of June 30, 2025 and
June 30, 2024, respectively. More detailed information about the Authority's long-term debt is presented on pages
9-11 in the Notes to the Financial Statements.
CONTACTING THE AUTHORITY'S FINANCIAL MANAGER
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview
of the Authority's finances and to demonstrate the Authority's accountability for the money it receives. If you have
questions about the report or need additional financial information, please contact the District at
1717 E. Miraloma Avenue, Placentia, California 92870 or the Finance Department at (714) 701-3040.
5
Page 13 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
Statement of Net Position
June 30, 2025
ASSETS
Interest Receivable 623,373$
Installment Contract Receivable:
Due in One Year 1,675,000
Due in More Than One Year 51,380,000
Total Assets 53,678,373
LIABILITIES
Interest Payable 623,373
Long-Term Liabilities:
Due in One Year 1,675,000
Due in More Than One Year 51,380,000
Total Liabilities 53,678,373
NET POSITION -$
See Notes to Financial Statement.6
Page 14 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
Statement of Revenues, Expenses and Changes in Fund Net Position
Year Ended June 30, 2025
NONOPERATING INCOME (EXPENSES)
Interest Income 2,513,494$
Interest Expense (2,513,494)
Total Nonoperating Income (Expenses)-
CHANGE IN NET POSITION -
Net Position - Beginning of Year -
NET POSITION - END OF YEAR -$
See Notes to Financial Statement.7
Page 15 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
Statement of Cash Flows
Year Ended June 30, 2025
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Financing Activities:
Principal Paid on 2017A Revenue Bonds (1,095,000)$
Interest Paid on 2017A Revenue Bonds (1,044,919)
Principal Paid on 2022A Revenue Bonds (505,000)
Interest Paid on 2022A Revenue Bonds (1,488,575)
Contract Receivable Installment Payments Received 4,133,494
Net Cash provided by Capital and Related Financing Activities -
NET CHANGE IN CASH AND CASH EQUIVALENTS -
Cash and Cash Equivalents at Beginning of Year -
CASH AND CASH EQUIVALENTS - END OF YEAR -$
See Notes to Financial Statement.8
Page 16 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Yorba Linda Water District Financing Authority (the Authority) was organized pursuant to a
Joint Exercise of Powers Agreement (the JPA Agreement) between the Yorba Linda Water District
(the District) and California Municipal Finance Authority, dated April 11, 2017. The Authority is statutorily
authorized by Article 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code and is
empowered under the JPA Agreement to issue its bonds for, among other things, the purposes of the plan of
financing described herein.
The Authority is an integral part of the reporting entity of the District. The financial activity of the Authority has
been included within the scope of the basic financial statements of the District because the board of
directors of the District is the governing board over the operations of the Authority. Only the financial
activity of the Authority is included herein; therefore, these financial statements do not purport to represent
the financial position or results of operations of the District.
B. Basic Financial Statements
The basic financial statements are composed of the statement of net position, the statement of revenues,
expenses, and changes in net position, the statement of cash flows, and the notes to the basic financial
statements.
C. Basis of Presentation
The accounts of the Authority are that of an enterprise fund. An enterprise fund is a proprietary type
fund used to account for operations (a) that are financed and operated in a manner similar to private business
enterprises where the intent of the governing body is that the costs (expenses) of providing goods or services to
the general public on a continuing basis be financed or recovered primarily through user charges; or
(b) where the governing body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
D. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the financial statements.
Basis of accounting refers to when transactions are recorded regardless of the measurement focus
applied. The accompanying financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Under the economic measurement focus, all assets and liabilities
(whether current or noncurrent) associated with these activities are included on the statement of net position.
The statement of revenues, expenses, and changes in net position presents increases (revenues) and
decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
E. Cash and Investments
The Authority considers all highly liquid investments with a maturity of three months or less at the time of
purchase to be cash equivalents.
F. Investments
Investments are stated at fair value, which is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. Changes in
fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year.
Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the
liquidation or sale of investments.
G. Use of Estimates
The financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America and, accordingly, include amounts that are based on management’s best estimates
and judgments. Accordingly, actual results could differ from the estimates.
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Page 17 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 2: INSTALLMENT CONTRACT RECEIVABLE
In May 2017, the Authority issued $29,335,000 of Revenue Bonds, Series 2017A (the 2017A Revenue
Bonds) (see Note 3) and loaned the proceeds to the District pursuant to an Installment Purchase Agreement
dated May 1, 2017. The loan proceeds were used by the District to refund the District’s 2008 Revenue
Certificates of Participation, as well as to provide funds for certain improvements to the District’s water system.
Under the Installment Purchase Agreement, the District agrees to pay the Authority installment payments in
an amount sufficient to pay the principal and interest coming due on the bonds solely from water revenues
of the District’s water system that are remaining after paying operation and maintenance costs.
In July 2022, the Authority issued $32,310,000 of Revenue Bonds, Series 2022A (the 2022A Revenue
Bonds) (see Note 3) and loaned the proceeds to the District pursuant to an Installment Purchase Agreement
dated July 1, 2022. The loan proceeds were used by the District to refund the District’s 2012 Revenue
Certificates of Participation, as well as to provide funds for certain improvements to the District’s water system.
Under the Installment Purchase Agreement, the District agrees to pay the Authority installment payments in
an amount sufficient to pay the principal and interest coming due on the bonds solely from water revenues
of the District’s water system that are remaining after paying operation and maintenance costs. The balance of
the receivable from the District at June 30, 2025, was $53,055,000.
For the year ended June 30, 2025, the receivable of the Authority consists of the following:
NOTE 3: LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities of the Authority for the year ended
June 30, 2025:
A. 2017A Revenue Bonds
In May 2017, the Authority issued $29,335,000 of 2017A Revenue Bonds to provide funds for the refunding of
the District’s 2008 Revenue Certificates of Participation, as well as to provide funds to the District for certain
improvements to the District’s water system.
The 2017A Revenue Bonds bear interest at rates ranging from 3% to 5%, payable semiannually on April 1 and
October 1. There is no reserve requirement for the 2017A Revenue Bonds.
Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Installment
Purchase Agreements
2017 22,825,000$ -$ 1,095,000$ 21,730,000$
2022 31,830,000 - 505,000 31,325,000
Total Purchase Agreements 54,655,000$ -$ 1,600,000$ 53,055,000$
Balance Balance Due Within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year
Purchase Agreements
2017A Revenue Bonds 22,825,000$ -$ 1,095,000$ 21,730,000$ 1,145,000$ 20,585,000$
2022A Revenue Bonds 31,830,000 - 505,000 31,325,000 530,000 30,795,000
54,655,000$ -$ 1,600,000$ 53,055,000$ 1,675,000$ 51,380,000$
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Page 18 of 21
YORBA LINDA WATER DISTRICT FINANCING AUTHORITY
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 3: LONG-TERM LIABILITIES (CONTINUED)
The 2017A Revenue Bonds are payable solely from installment payments to be made to the Authority from the
District, with annual principal payments starting October 1, 2017. The installment payments required from the
District are scheduled to provide sufficient monies to retire the revenue bonds as they become due and payable.
The balance outstanding on the 2017A Revenue Bonds at June 30, 2025, was $21,730,000.
The annual debt service requirements for the 2017A Revenue Bonds outstanding at June 30, 2025, are as
follows:
B. 2022A Revenue Bonds
In July 2022, the Authority issued $32,310,000 of 2022A Revenue Bonds to provide funds for the refunding of
the District’s 2012 Revenue Certificates of Participation, as well as to provide funds to the District for certain
improvements to the District’s water system.
The 2022A Revenue Bonds bear interest at rates ranging from 4% to 5%, payable semiannually on April 1 and
October 1. There is no reserve requirement for the 2022A Revenue Bonds.
The 2022A Revenue Bonds are payable solely from installment payments to be made to the Authority from the
District, with annual principal payments starting October 1, 2023. The installment payments required from the
District are scheduled to provide sufficient monies to retire the revenue bonds as they become due and payable.
The balance outstanding on the 2022A Revenue Bonds at June 30, 2025, was $31,325,000
The annual debt service requirements for the 2022A Revenue Bonds outstanding at June 30, 2025, are as
follows:
Year Ending June 30 Principal Interest Total
2026 1,145,000$ 988,919$ 2,133,919$
2027 1,205,000 930,169 2,135,169
2028 1,265,000 868,419 2,133,419
2029 1,325,000 803,669 2,128,669
2030 1,380,000 746,394 2,126,394
2031-2035 7,745,000 2,861,841 10,606,841
2036-2040 7,665,000 785,075 8,450,075
Total 21,730,000$ 7,984,486$ 29,714,486$
2017A Revenue Bonds
Year Ending June 30 Principal Interest Total
2026 530,000$ 1,462,700$ 1,992,700$
2027 555,000 1,435,575 1,990,575
2028 585,000 1,407,075 1,992,075
2029 615,000 1,377,075 1,992,075
2030 645,000 1,345,575 1,990,575
2031-2035 3,765,000 6,195,375 9,960,375
2036-2040 4,840,000 5,124,750 9,964,750
2041-2045 6,215,000 3,750,375 9,965,375
2046-2050 7,940,000 2,019,875 9,959,875
2051-2055 5,635,000 344,100 5,979,100
Total 31,325,000$ 24,462,475$ 55,787,475$
2022A Revenue Bonds
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Page 19 of 21
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Yorba Linda Water District Financing Authority
Placentia, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements the Yorba Linda Water District Financing
Authority (the "Authority"), a component unit of Yorba Linda Water District (the "District"), as of and for the year
ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the District's
basic financial statements, and have issued our report thereon dated October 17, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's internal control over
the Authority's financial reporting (internal control)as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an
opinion on the effectiveness of the Authority's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were
not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Authority's financial statements are free from material
misstatement,we performed tests of its compliance with certain provisions of laws, regulations, contracts,and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards.
PrimeGlobal nnAAccw<nrinq tennis
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LSL:* *0•••
To the Board of Directors
Yorba Linda Water District Financing Authority
Placentia, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on
compliance.This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for
any other purpose.
LSL, LLB'
Irvine, California
October 17, 2025
13
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