17 responses to findings and recommendations
F1
The majority of Orange County jurisdictions have not yet required their haulers to distribute residential containers that meet the CalRecycle standardized colors, leaving legacy and often incorrect or illegible labeling and embossing in place. Response: The City of Laguna Hills disagrees partially with the finding. The City of Laguna Hills is not aware of how all cities in Orange County are distributing their residential containers to meet SB 1383 requirements and can only respond definitely wit...
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees wholly with the finding. While some cities throughout Orange County may have large unfunded pension liabilities, this is not the case with the City of Laguna Hills. This is the direct result of the City staying with the historical and sustainable 2% at 60 pension formula. The City's unfunded liability as of June 30, 2012, was $2,721,662. This amount does not take into account the lump sum payment of $557,805 that was made by the City to CalPERS on June 21, 2013 to pay off the City's side fund. Accounting for this side fund pay off, the unfunded pension liabil...
R1
All jurisdictions should expedite the acquisition and distribution of residential containers that meet the CalRecycle standardized colors. Additionally, until the compliant containers can be distributed, all jurisdictions should ensure the distribution of labeling for non-compliant containers that explain the current SB 1383 requirements applicable to their jurisdiction by June 30, 2025. Response: The recommendation has been implemented. The City of Laguna Hills recently issued a joint RFP for w...
Response: Implemented
Due: June
30, 2025
Scheduled: FY 2015/2016
Score: 0
.
Each city should post its current and at least three most recent prior year budgets on the city's web site, and these budgets should be easily located. Each city's web site should have a search engine and a single search on the word "budget" should immediately link to the current budget. (F.1) (F.4) Response: The recommendation has been implemented. Utilizing a biennial budget process, the City's budget includes a total of four years' worth of budgeting, including prior year actuals, current year-end estimates, and two years in the future. Typing "budget" in the City website's search functi...
F2
While a jurisdiction may not delegate its overall responsibility for compliance with State requirements to a hauler, some jurisdictions have designated the task of imposing and collecting fines from residents to the hauler in accordance with State law. However, not all jurisdictions are clear on who ultimately receives and retains the collected fines. Response: The City of Laguna Hills disagrees partially with the finding. 24035 El Toro Road • Laguna Hills, California 92653 • (949) 707-2610 • FA...
Response: Disagree Partially
Score: 0
The City of Laguna Hills agrees with the finding.
F3.
There are risks to OC cities of changes to key actuarial assumptions including revisions downward of expected returns on investment and the likely move by pension funds to using more realistic mortality assumptions, which would increase unfunded liabilities. Response: The City of Laguna Hills disagrees partially with the finding. While there are risks, the City has taken these risks into account in its long range forecast of pension costs and the subsequent impact on the City's operating budget. As pointed out under F1 above, total pensio...
R2
By December 31, 2024, all jurisdictions should ensure their waste hauling agreements are in compliance with State statute so that haulers may be designated to perform certain required tasks but are not improperly delegated overall responsibility for compliance. Additionally, all jurisdictions should ensure that any fines collected by a hauler are forwarded to the jurisdiction. Response: The recommendation has been implemented. The City of Laguna Hills adopted its SB 1383 enforcement ordinance in...
Response: Will Not Implement
Due: December 31, 2024
Scheduled: FY 2015/2016
Score: -1
.
Each city's budget information should contain not only this year/next year budget projections, but should show at least five years of projected revenues and expenditures. Projections should be at the same level of detail and use the same line item structure as information for the current budget. (F.1) (F.2) (F.3) (F.5) (F.8) (F.10) Response: The recommendation will not be implemented because it is not warranted or is not reasonable. The City utilizes a biennial budget process, which includes not only current year-end estimates but also provides detailed projections of revenues and expenditu...
F3
All jurisdictions will eventually start collecting fines from residents for non-compliance, but some have not yet determined whether the revenues will go into a waste and recycling enterprise fund or into the jurisdiction's general fund. Response: The City of Laguna Hills disagrees partially with the finding. The City of Laguna Hills is not aware of how all cities in Orange County are collecting fines for non-compliance and can only respond definitely with respect to its situation. With respect ...
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees partially with the finding. While there are risks, the City has taken these risks into account in its long range forecast of pension costs and the subsequent impact on the City's operating budget. As pointed out under F1 above, total pension costs for the City are projected to remain at or below 3% of the City's operating budgets over the next seven years.
F4.
Locating city budget information on a city web site is not always straightforward and prior year budgets are sometimes not posted by a city. Response: The City of Laguna Hills disagrees partially with...
R3
The OCGJ recommends that all jurisdictions utilize a dedicated waste and recycling enterprise fund for collection of fines for non-compliance with SB 1383 by December 31, 2024. Response: The recommendation has been implemented. The City of Laguna Hills agrees with utilizing a dedicated waste and recycling fund and as noted in F3 above has established a separate Regulatory Compliance Fund.
Response: Will Implement
Due: December 31, 2024
Scheduled: FY 2015/2016
Score: +1
.
Each city's budget should show separate line items for predicted employee and predicted employer contributions for the city pension systems. (F.8) (F.9) Response: The recommendation has not yet been implemented, but will be implemented in the future. The City currently provides one line item in the City's budget that shows the sum of retirement costs. With the development of the next biennial budget, the City will detail the predicted employee and employer contributions, most likely in the Budget Message section or as an Appendix to the budget.
R4.
Each city's budget should provide trend ...
F4
In most jurisdictions, education and outreach is a joint effort between jurisdiction, hauler, and sometimes consultants, with the jurisdiction reviewing the materials before publication. The methods of dissemination vary by jurisdiction and hauler but frequently rely on a resident actively seeking the information, which requires the resident to have some awareness of the new mandates in the first place. Most efforts primarily revolve around intermittent hard-copy paper mailings. Response: The Ci...
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees partially with the finding. The City's budget is easily found on the City's website under the Forms, Documents, and Maps section of the website. The City does not currently post prior year budgets.
F5.
City budgets posted online project revenues and expenditures for at most one or two years into the future and sometimes do not show prior year data. Response: The City of Laguna Hills disagrees wholly with the finding. As a practice, the City includes within its budget prior year actuals, current year year-end estimates, and detailed revenues and expenditures...
R4
By December 31, 2024, all jurisdictions should diversify the methods and media used for education and outreach to include, among others, various social media platforms, emails to residents, newspaper, television, flyer mailings, community events, and appearances at other public gatherings. Response: The recommendation has been implemented. The City of Laguna Hills currently diversifies its methods of outreach including periodic Organic Waste Town Hall meetings. As mentioned in F4 above, the new ...
Response: Implemented
Due: December 31, 2024
Scheduled: FY 2015/2016
Score: 0
.
Each city's budget should provide trend data on the accumulation/drawdown of reserves and provide details on the city's policy for the size of its reserves and on the intended uses of such reserves. In particular any discussion of reserves should address possible use of reserves to accelerate amortization of unfunded pension liabilities. (F.7) Response: The recommendation has been implemented. It is the City's practice to provide trend data on the accumulation and drawdown of reserves, as well as provide details on the City's policies related to its reserves. Furthermore, the City regularly...
F5
Most jurisdictions currently have no way to accurately determine the effectiveness of their respective education and outreach efforts other than the eventual inspections or audits that will take place. Response: The City of Laguna Hills disagrees partially with the finding. The City of Laguna Hills is not aware of how other cities in Orange County our measuring their effectiveness of their education and outreach efforts. However, the City of Laguna Hills' new Agreement contains detailed reportin...
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees wholly with the finding. As a practice, the City includes within its budget prior year actuals, current year year-end estimates, and detailed revenues and expenditures two years in the future. In addition, general revenues and expenditures are included in the 8-Year Resource Allocation Plan, which can be found in the Budget Summaries section of the City's budget.
F6.
City budgets often lack footnotes explaining key assumptions, risks, and unusual changes in budgeted amounts or revenues and expenditures. Response: The City of Laguna Hills disagrees wholly wi...
R5
By December 31, 2024, and in order to gauge the effectiveness of their education and outreach efforts, all jurisdictions should develop new methods to engage residents directly to help determine their awareness of the requirements associated with SB 1383, such as surveys, online quizzes, and door-to-door polling. Response: The recommendation has been implemented. The City of Laguna Hills, as noted F4 and F5 above, has methods established with the new Agreement to measure and gauge awareness of S...
Response: Will Not Implement
Score: -1
.
Each city using CalPERS for one or more of its pension plans should identify the names and dates of the CalPERS Annual Valuation Report(s) which call out Annual Required Contributions (ARCs) for these plans and should provide a separate expenditure line item for predicted city catch-up contributions for the city pension systems based on these ARCs. A discussion of the risks associated with these CalPERS projections should also be provided by the city. (F.1) (F.2) (F.8) (F.9) Response: The recommendation will not be implemented because it is not warranted or is not reasonable. The City has a...
F6
There is some concern that there are not enough composting facilities in Orange County to process all organic waste, forcing some jurisdictions/haulers to transport it long distances for processing. Response: The City of Laguna Hills disagrees partially with the finding. The City of Laguna Hills hauler is currently transporting organic waste out of Orange County for processing. However, the City's new Agreement has a designated composting facility which is located in South Orange County that tak...
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees wholly with the finding. While the City does not include footnotes in its budget, the key assumptions, as well as the risks and unusual changes in budgeted amounts or in revenues and expenditures, are clearly explained in the Budget Message, located in the Introduction section of the City's budget.
F7.
City budgets sometimes do not provide trend data on the accumulation/drawdown of reserves and lack details on the city's plan for the size of its reserves or their intended uses.
Response: The City of Laguna Hills disagrees wholly with the finding. Within it...
R6
By June 30, 2025, the OCGJ recommends that all jurisdictions participate in the OCW&R-led efforts to develop a coordinated county-wide approach to the organics recycling infrastructure and programs as well as procurement requirements associated with SB 1383, working towards creating circular economy as a long-term goal. Response: The recommendation has been implemented. The City of Laguna Hills supports OCW&R efforts to develop a coordinated county-wide approach for organic waste processing. In ...
Response: Implemented
Score: 0
.
Each city which outsources fire or police services to OCFA and/or OCSD should require them to provide projections of future costs of service out at least five years into the future and require that these projected costs explicitly show the relationship of projected pension costs including amortization of unfunded liabilities. This level of pension cost information should be provided in budgeted expenditures for outsourced services. A discussion of the risks associated with these projections should also be provided by the agencies and incorporated on the city's budgets. (F.6) (F.12) Response...
F7
There is currently no infrastructure in the county that is a State-approved source of Renewable Natural Gas (RNG) and energy from organic waste. Jurisdictions that use vehicles running on RNG procured from non-approved sources cannot count that RNG towards fulfillment of their procurement requirement. Response: The City of Laguna Hills agrees with the finding. The City of Laguna Hills notes that there is currently no infrastructure in Orange County that is a State-approved source of Renewable Na...
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees wholly with the finding. Within its biennial budget, the City makes a point of providing trend data regarding its reserves. Additionally, included as Appendix 1 in the budget, the City's Financial Policies explicitly address the City's operating ratios and reserve policies.
F8.
Cities can control most future expenditures by increasing or decreasing budgets for those expenditures as funds are available. However, increases to annual required contributions to their pension systems are imposed externally, change unpredictably, and when they occur, are ramped up...
R7
By December 31, 2024, the Orange County Board of Supervisors and all Orange County cities should lobby appropriate members of the State Legislator and/or CalRecycle to revise the organic waste diversion targets to better reflect Orange County's waste amounts, revise the jurisdiction's' procurement requirements to better represent the limited options currently available for procurement, the jurisdictions' varying populations, population densities, and geographic size, and to delay associated enfo...
Response: Will Not Implement
Score: -1
.
Each city that has CalPERS as a provider for pensions should include a provision in their agreement with CalPERS that CalPERS will post their Annual Valuation Reports online. (F.11) Response: The recommendation will not be implemented because it is not warranted or is not reasonable. Annual Valuation Reports for all cities that contract with CalPERS are already posted on their website and can be found on the following webpage: http://www.calpers.ca.gov/index.jsp?bc=/about/forms-pubs/calpers-reports/actuarialreports.xml. Additionally, the City will include a link to its Annual Valuation Repo...
F8
The formula used by the State to calculate a jurisdiction's procurement target does not account for a jurisdiction's population density or geographic size (square miles). As such, meeting the annual procurement target presents a significant challenge for most jurisdictions. Response: The City of Laguna Hills agrees with the finding. The current formula for the calculation of procurement requires additional research on the accuracy of the corresponding annual procurement target.
Response: Disagree Partially
Score: 0
The City of Laguna Hills agrees with the finding.
F9.
City budgets posted online do not explicitly show the link between planned city pension expenditures and pension system actuarial reports and those reports' annual required contributions. Risks associated with predictions of future annual required pension contributions based on risk assessment data provided by their pension systems and/or based on their own analysis are not discussed. Response: The City of Laguna Hills disagrees wholly with the finding. The City includes within its biennial budget a lengthy discussion regarding pension co...
F9
Many Orange County jurisdictions were unable to meet the requirement in SB 1383 to reduce organic waste sent to landfills by the 2020 deadline. It is unlikely the required seventy-five percent reduction will be achieved by the 2025 deadline. Response: The City of Laguna Hills agrees with the finding.
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees wholly with the finding. The City includes within its biennial budget a lengthy discussion regarding pension costs, future risks to the City, and the impacts of planned and unplanned changes in required contributions.
F10.
Pension costs for New (Post-PEPRA) employees will be substantially lower than for Legacy employees, but only a small percentage of current employees, typically only a few percent of total employees, are New. Substantially reduced pension costs for cities as a result of pension reform will not be realized for one or more decades. Response:...
F10
The current procurement requirements mandated by SB 1383 are unrealistic and likely unachievable by most jurisdictions. Response: The City of Laguna Hills agrees with the finding. The current procurement requirements mandated by SB 1383 are challenging for urban Southern California. Unless the marketplace can develop outlets for finished compost, urban areas are likely to face unachievable diversion mandate procurement requirements.
Response: Disagree Partially
Score: 0
The City of Laguna Hills disagrees partially with the finding. Laguna Hills provides a 2% @ 60 retirement formula and, unlike most cities throughout the State, the City never modified or enhanced its pension formula. As a result, while the City will realize some savings as new employees replace legacy employees, the savings are not substantial, because the PEPRA retirement plan is only marginally less generous than the City's existing plan.
F11.
CalPERS Annual Valuation Reports for Miscellaneous and Safety City employees are available to the public online for a very small number of cities. R...