HomeMy WebLinkAbout2017-01-24 - AGENDA REPORTS - FY 15-16 CAFR (2)Agenda Item: 17
CITY OF SANTA CLARITA
Q) AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: fAl
DATE: January 24, 2017
SUBJECT: FISCAL YEAR 2015-16 COMPREHENSIVE ANNUAL FINANCIAL
REPORT AND OTHER RELATED REPORTS
DEPARTMENT: Administrative Services
PRESENTER: Carmen Magana
RECOMMENDED ACTION
City Council approve the Comprehensive Annual Financial Report and other related reports for
fiscal year ending June 30, 2016.
The City's independent audit firm, Vavrinek, Trine, Day & Co., LLP, has completed the City of
Santa Clarita's (City's) annual audit for fiscal year ending June 30, 2016. Vavrinek, Trine, Day
& Co., LLP conducted the audit in accordance with Generally Accepted Auditing Standards,
whereby an audit plan was prepared and followed to obtain reasonable assurance the City's
financial statements were free from material misstatements. The audit included a review, on a
test basis, of documents supporting the amounts and disclosures in the financial statements. The
audit also included assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall general purpose financial statement presentation.
The Comprehensive Annual Financial Report (CAFR) reflects the City's strong financial
condition with continued growth of the General Fund balance.
Based on the audit performed, Vavrinek, Trine, Day & Co., LLP issued an unmodified "clean"
audit opinion letter. The opinion reflects the best level an organization can receive on its
financial statements. The letter is identified as the "Independent Auditor's Report" in the City's
CAFR for fiscal year ending June 30, 2016.
In accordance with Generally Accepted Auditing Standards (AU -C 260), the Auditor's
Communication With Those Charged With Governance, a Report to the Honorable Mayor and
Members of the City Council has been prepared by Vavrinek, Trine, Day & Co., LLP to provide
specific information related to the audit scope and performance.
Page 1
Packet Pg. 101
In addition, the following reports were prepared for the fiscal year ending June 30, 2016, by
Vavrinek, Trine, Day & Co., LLP:
Appropriations Limit Calculation
Single Audit Report
Transit Enterprise Fund of the City of Santa Clarita
City of Santa Clarita Air Quality Improvement Fund
Santa Clarita Open Space Preservation District
Copies of the reports were provided to the City Council under a separate memo.
ALTERNATIVE ACTION
No feasible alternative action has been identified by staff.
FISCAL IMPACT
None
ATTACHMENTS
Comprehensive Annual Financial Report 6-30-16 (available in the City Clerk's Reading File)
Appropriations Limit Calculation 6-30-16 (available in the City Clerk's Reading File)
Compliance Report Single Audit 6-30-16 (available in the City Clerk's Reading File)
Transit Enterprise Fund 6-30-16 (available in the City Clerk's Reading File)
Air Quality Improvement Fund 6-30-16 (available in the City Clerk's Reading File)
Open Space Preservation District 6-30-16 (available in the City Clerk's Reading File)
Report to Honorable Mayor and Members of the City Council (available in the City Clerk's
Reading File)
Page 2
Packet Pg. 102
CITY OF SANTA CLARITA, CALIFORNIA
pS\ON
11
LD;G `ND CRFgT
d`Ja\�y z ,Nc co
ouality of Life o
r
�0 SANTA L
Q
9
y'
G�OFD 7g DECEMB�P10
Sr
Lit A fill
iL` I
1
OS 4
cSAFFTY �. �ENt,R�sp �
® PROACTIVE TRPNSpP'
Fiscal Year Ended June 30, 2016
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
PREPARED BY THE DEPARTMENT OF ADMINISTRATIVE SERVICES
CITY OF SANTA CLARITA, CALIFORNIA
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2016
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letterof Transmittal.........................................................................................................................i
GFOA Certificate of Achievement for Excellence in Financial Reporting ................................. viii
Officials of the City of Santa Clarita..............................................................................................ix
OrganizationalChart ........................................................................................................................x
Mapof the City of Santa Clarita.....................................................................................................xi
FINANCIAL SECTION
Independent Auditors' Report ..........................................................................................................1
Management's Discussion and Analysis..........................................................................................4
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position............................................................................................14
Statement of Activities................................................................................................16
Fund Financial Statements:
Governmental Fund Financial Statements:
BalanceSheet........................................................................................................18
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position.........................................................................20
Statement of Revenues, Expenditures and Changes in
FundBalances.....................................................................................................21
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the
Statement of Activities........................................................................................23
Proprietary Fund Financial Statements:
Statement of Net Position.....................................................................................24
Statement of Revenues, Expenses and Changes in Fund Net Position.................25
Statementof Cash Flows......................................................................................26
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position.....................................................................27
Statement of Changes in Fiduciary Net Position..................................................28
Notes to the Financial Statements.....................................................................................29
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2016
TABLE OF CONTENTS
FINANCIAL SECTION (CONTINUED)
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual:
GeneralFund....................................................................................................................77
Bridge and Thoroughfare Special Revenue Fund............................................................78
Developer Fees Special Revenue Fund............................................................................79
Public Library Special Revenue Fund.............................................................................80
Landscape Maintenance District #1 Special Revenue Fund............................................81
Scheduleof Funding Progress.......................................................................................................82
Schedule of Changes in the City's Net Pension Liability and Related Ratios...............................83
Scheduleof City Contributions......................................................................................................84
Notes to Required Supplementary Information
SUPPLEMENTARY INFORMATION
Non -major Governmental Funds:
Description of Non -major Governmental Funds.....................................................................88
CombiningBalance Sheet........................................................................................................91
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................99
Schedules of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual:
Bikeway Special Revenue Fund............................................................................................107
Gas Tax Special Revenue Fund.............................................................................................108
Proposition A Special Revenue Fund....................................................................................109
Special Assessment Special Revenue Fund...........................................................................110
State Park Special Revenue Fund..........................................................................................111
Transportation Development Act Special Revenue Fund......................................................112
Traffic Safety Special Revenue Fund....................................................................................113
Community Development Block Grant Special Revenue Fund............................................114
Air Quality Management District Special Revenue Fund.....................................................115
Stormwater Special Revenue Fund........................................................................................116
Surface Transportation Program Special Revenue Fund.......................................................117
BJA Law Enforcement Special Revenue Fund......................................................................118
Supplemental Law Grant Special Revenue Fund..................................................................119
HOME Special Revenue Fund...............................................................................................120
Library Facilities Fees Special Revenue Fund......................................................................121
Public Education and Government Special Revenue Fund...................................................122
Proposition C Special Revenue Fund....................................................................................123
Federal Grants Special Revenue Fund...................................................................................124
Measure R Special Revenue Fund.........................................................................................125
Tourism Marketing District Special Revenue Fund..............................................................126
Open Space Preservation District Special Revenue Fund .....................................................127
Miscellaneous Grants Special Revenue Fund........................................................................128
Park Dedication Special Revenue Fund................................................................................129
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 309 2016
TABLE OF CONTENTS
FINANCIAL SECTION (CONTINUED)
Housing Successor Agency Special Revenue Fund..............................................................130
Tourism Marketing Bureau Special Revenue Fund...............................................................131
General Capital Projects Fund...............................................................................................132
Public Financing Authority Capital Projects Fund................................................................133
Public Financing Authority Debt Service Fund.....................................................................134
Internal Service Funds:
Description of Internal Service Funds...................................................................................135
Combining Statement of Net Position...................................................................................136
Combining Statement of Revenues, Expenses and Changes in Net Position ........................137
Combining Statement of Cash Flows....................................................................................138
Agency Funds
Descriptionof Agency Funds................................................................................................139
Combining Statement of Assets and Liabilities.....................................................................142
Combining Statement of Changes in Assets and Liabilities ..................................................142
STATISTICAL SECTION
Tableof Contents..............................................................................................................145
NetPosition by Component..................................................................................................146
Changesin Net Position.........................................................................................................148
Fund Balances of Governmental Funds................................................................................152
Changes in Fund Balances of Governmental Funds..............................................................154
Assessed Values and Actual Values of Taxable Property .....................................................156
Assessed Values and Actual Values of Taxable Property—Redevelopment Agency ..........158
Assessed Values—Taxable Property .....................................................................................160
Assessed Values—Use Category Summary..........................................................................162
Direct and Overlapping Property Tax Rates..........................................................................164
Principal Property Taxpayers...............................................................................................165
Property Tax Levies, Tax Collections and Delinquencies ....................................................166
Top Property Owners Based on Net Values—Successor Agency.........................................167
Project Area Assessment Appeals Summary and
Tax Collection History Successor Agency......................................................................168
Charge Detail Report for CFD 2002-1 (Valencia Town Center)—Successor Agency .........169
Ratio of Outstanding Debt by Type......................................................................................171
Ratio of General Bonded Debt Outstanding..........................................................................173
Direct and Overlapping Tax and Assessment Debt..............................................................174
Legal Debt Margin Information............................................................................................175
Pledged Revenue Coverage...................................................................................................177
Demographic and Economic Statistics.................................................................................178
PrincipalEmployers..............................................................................................................179
Full -Time and Part -Time City Employees by Function .......................................................180
Operating Indicators by Function.........................................................................................181
Capital Asset Statistics by Function.....................................................................................182
City of
SANTA CLARITA
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
w .sanw-clariw.com
December 22, 2016
Honorable Mayor, Mayor Pro Tem, and City Councilmembers:
The Comprehensive Annual Financial Report (CAFR) of the City of Santa Clarita for
fiscal year ended June 30, 2016, is hereby submitted in accordance with Chapter 2.12 of
the City of Santa Clarita Municipal Code. This report provides the City Council and the
public with an understanding of the financial condition of the City.
This report consists of management's representations concerning the finances of the City
of Santa Clarita. As such, management assumes full responsibility for the completeness
and reliability of the information contained in this report. To provide a reasonable basis
for making these representations, management of the City has established a
comprehensive framework of internal controls that is designed to protect the City's assets
from loss, theft, or misuse, and to compile sufficient reliable information for the
preparation of the City's financial statements. Because the cost of internal controls
should not outweigh their benefits, the City's comprehensive framework of internal
controls has been designed to provide reasonable, rather than absolute, assurance that the
financial statements are free from material misstatement. To the best of our knowledge
and belief, the enclosed data is accurate in all material respects and reported in a manner
designed to present fairly the financial position and results of operations of the various
funds of the City of Santa Clarita.
State Law requires the City to prepare an annual financial report. This report fulfills that
obligation. Vavrinek, Trine, Day & Co., LLP, an independent firm of certified public
accountants, has issued an unmodified ("clean") opinion on the financial statements of
the City of Santa Clarita for the year ended June 30, 2016. The independent auditor's
report is located at the front of the financial section of this report. The CAFR has been
prepared in conformity with Generally Accepted Accounting Principles (GAAP) and the
financial reporting requirements prescribed by the Governmental Accounting Standards
Board (GASB). These reporting requirements specify that management provide a
narrative introduction, overview, and analysis to accompany the financial statements in
the form of a Management's Discussion and Analysis (MD&A). The MD&A, which
immediately follows the independent auditor's report, complements this letter of
transmittal and should be read in conjunction with it.
ME
Also, as a recipient of federal and state financial assistance, the City is required to have a
"Single Audit" performed by our independent audit firm. The Single Audit was designed
to meet the special needs of the federal grantor agencies. The standards governing the
Single Audit engagements require that the independent auditor report on the fair
presentation of the financial statements and the audited government's internal controls
and compliance with legal requirements, with 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.
CITY PROFILE
The City of Santa Clarita was incorporated on December 15, 1987, as a General Law
City, and operates under a City Council/City Manager form of government. It is located
between the Santa Susana and San Gabriel mountain ranges, approximately 35 miles
northwest from the City of Los Angeles. It is encompassed by the communities of
Canyon Country, Newhall, Saugus, and Valencia encompassing approximately 66 square
miles. With a population of 225,512, the City is the third largest in Los Angeles County
and 17`h largest in the State of California. Santa Clarita offers an expansive parks and
recreation network, with 33 beautiful park facilities, more than 8,745 acres of City -owned
open space and 140 miles of trails and paseos designed for commuting and recreational
use, including walking, hiking, biking and skating. The City's unique blend of upscale
sophistication with small town charm and old -west heritage allows it to accommodate
growth while continuing to provide an excellent quality of life for residents.
The City of Santa Clarita's five City Councilmembers are elected at large to four-year
overlapping terms, with elections held bi-annually. The position of Mayor is annually
selected by the Councilmembers. The City Council is responsible, among other things,
for passing ordinances, adopting the budget, setting policy, and appointing
committees. The City Council appoints the City Manager, who is responsible for
implementing the policies of the Council, overseeing the day-to-day operations of City
government, and for appointing and managing the various Directors. The City Council
also appoints the City Attorney.
The City provides, either directly or under contract, a full range of municipal services
including public safety, construction, maintenance of streets and other infrastructure,
public libraries, public works, parks and recreation, community development, and
cultural events. The City also provides services through the Santa Clarita Public
Financing Authority (PFA), which is a blended component unit of the City of Santa
Clarita. The financial activities of this entity are included in this report, as their activities
are under the control of the City. A separate component unit report for the Santa Clarita
PFA is also available.
The City operates on a fiscal year basis which begins July 1 and ends June 30. The
City's Municipal Code requires the City Manager to prepare a budget and present it to the
City Council each year. The budget process begins by January of each year and is carried
out under the direction of the City Manager in cooperation with the various City
ii
departments. The proposed operating and capital budget is submitted by the City
Manager to City Council for adoption by June 30, to take effect at the beginning of the
fiscal year on July 1. Budgetary control for the City is maintained through its accounting
systems. Once adopted, the budget may be amended throughout the year as necessary.
Budgetary control is established at the category level within each fund.
LOCAL ECONOMY
The City of Santa Clarita is one of Southern California's most desirable places to live and
do business. City officials pride themselves on the organization's ability to balance the
needs of locally based companies with those of the community, resulting in an unmatched
quality of life.
We continue to see positive changes in the economy, such as an increase in sales tax
revenues and a recovering housing market. The City has a 100 percent track record for
adopting a balanced, on-time budget, with ample reserves and contingency funds. Fiscal
Year 2015-16 was successful and stable for the City due to prudent fiscal planning.
Targeted employment sectors in Santa Clarita include aerospace/defense, advanced
manufacturing, medical/biomedical, digital media/entertainment, and information
technology. This past year Logix Federal Credit Union announced the relocation of their
headquarters to the Santa Clarita Valley and we welcomed the opening of Sunkist
headquarters, providing high quality jobs for our community. A number of restaurants
have signed leases including the Cheesecake Factory and Saddle Ranch Chop House.
City Council also approved a purchase and sale agreement with a development partner to
bring a 7 -screen Laemmle Theatre, 20,000+ square feet of retail space and a parking
structure with 374 parking spaces.
Retail vacancy rates are steady, currently at 4.3 percent compared to 4.8 percent in the
2nd Quarter of 2015. The same is true for industrial vacancy rates, which are at 3.1
percent, a slight increase from 3 percent in the 2nd Quarter of 2015. Office space in the
City is currently a 9 percent vacancy rate in the 2nd Quarter of 2016.
The City's Film Office enjoyed another strong year. In Fiscal Year 2015-16, filming in
Santa Clarita meant an economic impact of $30.9 million to the local economy from
location filming. Santa Clarita is home to more than 20 sound stages, 10 movie ranches,
and hundreds of film -related businesses. Network television shows like "NCIS,"
"Switched at Birth," "Westworld," "Recovery Road," `Blunt Talk," and "Stitchers," are
based in Santa Clarita and regularly film on location within the City. Popular locally -
based show, NCIS celebrated its 300`h episode.
Tourism continues to be one of the City of Santa Clarita's largest economic generators
contributing more than $3.8 million to the general fund from Transient Occupancy Tax
(TOT) in Fiscal Year 2015-16. The sixth year of the Tourism Marketing District (TMD),
a collaborative assessment program and partnership between the City and five local
hotels, grew upon previous success and collected over $725,000 in support of increased
iii
marketing and promotion of Santa Clarita as a tourism destination. TMD dollars are a
vital component of the area's continued attraction of events and visitors, which translates
to dollars spent in the community and at local businesses. The following events are just a
few that were attracted as part of the City's increased event attraction efforts: California
Super States Chess Championships, American Special Hockey Association, The Master's
College Collegiate Golf Tournament, Valencia Trail Race, Real So Cal SCV Cup, Triple
Crown Softball, Junior Olympic Swim Meet, US Bowling California Association
Tournament, Under Armor Alison Lee Jr. Golf Championship and the Bonspiel Curling
Tournament. The City also attracted the return of two internationally sanctioned events,
including the Amgen Tour of California, returning to the City for the 8d` year, and the 3rd
Annual Wings for Life World Run.
Santa Clarita recognizes the important role education plays in the success of the
community. The City is home to three premier colleges, including California Institute of
the Arts (CalArts), College of the Canyons, and The Masters College. These colleges
offer world-class instruction and programming to prepare students to become the next
generation of business professionals and leaders.
LONG -TERM FINANCIAL PLANNING
Santa Clarita is one of California's model cities, boasting the essential elements needed
for well-balanced living and total well-being. Santa Clarita remains one of the safest
cities in California among cities with populations exceeding 150,000. Santa Clarita is
home to a well-educated population, with more than 70 percent of adults over age 25 and
older having attained some college or higher, as compared to Los Angeles County, which
averages 56.2 percent.
The City of Santa Clarita has experienced steady growth since its inception in 1987, and
City officials work directly with the private and public sectors to attract new businesses
to the Santa Clarita Valley. The City of Santa Clarita is focused on retaining existing
companies and encouraging their growth within the City while working to attract new
business, thereby creating new jobs for residents. Santa Clarita has set an aggressive goal
of creating two jobs for every household, whereby providing an increased opportunity for
residents to work close to home.
The continuing recovery in our economy has directly affected the City's revenue growth,
producing increases in property tax, sales tax, real property transfer tax, and TOT.
The City provides necessary funding for essential services for City Council and
community identified priorities, while taking steps to ensure the City remains in good
financial health. Twice per year, the City prepares extended forecasts for the General
Fund to determine the future impact of current actions. These forecasts indicate a stable
General Fund over the next few years, primarily due to projected marginal increases in
sales, property taxes, and property taxes in lieu of vehicle license fees. However, because
the City of Santa Clarita has practiced smart growth in successful financial times, the
City is well prepared for times when revenue projections do not include growth.
iv
The City maintains a General Fund balance sufficient to provide for various identified
contingencies, as well as an established operating reserve. In addition, the General Fund
contributes annually to the City's facilities fund, which provides for major maintenance
and replacement of infrastructure and capital improvements. The City's Capital
Improvement Program (CIP) is a component of the annual budget process that addresses
the City's short- and long-term capital needs. Just as important, the CIP emphasizes a
plan of action that effectively maintains the existing infrastructure to a sound physical
standard, as well as providing new facilities to support current growth and complement
new development.
MAJOR MILESTONES IN FISCAL YEAR 2015-16
❖ The Santa Clarita Film Office had another strong year, processing 528 permits in
Fiscal Year 2015-16 with a recorded 1,305 film days. The estimated total
economic impact from location filming was $30.9 million.
❖ Improving, maintaining, and adding to the City's infrastructure continues to be a
high priority and focus for the City. During Fiscal Year 2015-16, the City
completed the beautification and improvement project of Sierra Highway from
Via Princessa to Soledad Canyon Road, updating medians and adding a triple turn
pocket from northbound Sierra Highway onto westbound Soledad Canyon Road
to improve traffic flow at the intersection; finished the widening of the Lost
Canyon Road Bridge next to the Santa Clara River, adding 4 -foot shoulders along
both sides of the existing travel lanes; completed another successful year of the
slurry seal and overlay project, resurfacing over 180 streets; and completed the
Golden Valley Road bridge widening project at the 14 Freeway, widening the
bridge from two through lanes to four lanes, adding left turn lanes for both
directions of the 14 Freeway and adding a protected bike and pedestrian path.
❖ Santa Clarita continues to be proactive in addressing teen drug use. To raise
awareness about drug availability and use, the City continued to reach out to
parents and families and provide assistance to those in need. The City's Drug
Free Youth In Town (DFYIT) program continues to grow, with a total of over
2,600 teens pledging to stay sober and engaged in meaningful, healthy activities
on every junior and senior high school campus in the Santa Clarita Valley.
❖ Santa Clarita Public Library continues to thrive in its fifth year of operation. The
three branches saw over 819,000 patron visits, issued 14,290 new library cards,
circulated more than 1.4 million books and materials, and the library website had
over 600,00 visits last year.
❖ Special events hosted by the City attracted visitors from across the globe. Santa
Clarita hosted the Amgen Tour of Califomia bike race and the Intemational
Wings for Life World Run, in addition to the annual Marathon in November. The
City also worked with community partners to host the Thursdays@Newhall event
series, which includes JAM Sessions, Revved up, Senses, the ARTree Speaker
Series and the SCVTV Presents OutWest Concert Series. The City's Cowboy
Festival had its second year in Old Town Newhall and adjacent Hart Park with
high attendance.
AWARDS AND ACKNOWLEDGEMENTS
The City of Santa Clarita was recognized many times throughout the year, being ranked
by Parenting.com as the third safest city in America. SafeWise.com named Santa Clarita
as one of the 50 safest cities in California, and 24/7 Wall St. named the City "America's
20th Best City to Live", the only California city to rank in the top 20. Additionally, Only
in Your State named Santa Clarita the No. I Best City for Retirement in Southern
California stating, "Santa Clarita offers the perfect blend of refined living in a community
that still has a small town feel."
The City of Santa Clarita also won various awards including: the 2015 Helen Putnam
Award of Excellence from the League of California Cities in Economic Development
through the Arts category for the revitalization of Old Town Newhall, and the Bronze
Level Bicycle Friendly Community Award was received in 2015 for the City's extensive
bike paths, trails, and paseos established around the City with access year round and the
Bike Santa Clarita website.
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Santa Clarita for its Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended June 30, 2015. This was the 27th consecutive year the City has achieved this
prestigious award. In order to be awarded a Certificate of Achievement for Excellence in
Financial Reporting, a government unit must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report. This report must satisfy GAAP and
applicable legal requirements_ A Certificate of Achievement for Excellence in Financial
Reporting is valid for a period of one year only. We believe our current comprehensive
annual financial report continues to meet the requirements of the GFOA Certificate of
Achievement Program, and we are submitting it to GFOA to determine its eligibility for
another certificate.
The City also received a Certificate of Excellence Award from the Association of Public
Treasurers of the United States and Canada for Santa Clarita's Investment Policy. The
City annually submits its Investment Policy to the Association's Investment Policy
Certification Committee for award consideration and has received the prestigious
Certificate of Excellence Award for the past 21 years.
This report is a joint effort by many people from many different areas of responsibility.
The preparation of this report could not have been accomplished without the hard work
and team effort of the staff of the Finance Division, in particular, Financial Analysts,
Susan Cromsigt, Mary Ann Ruprecht, Jan Downey, Brittany Houston, Blanca Gomez,
and Lisett Bautista. I would like to express my appreciation to all members of the
Division who assisted and contributed to its preparation. I would also like to thank the
vi
Mayor; Mayor Pro Tem; Councilmembers; City Manager, Ken Striplin; Assistant City
Manager, Frank Oviedo; Deputy City Manager, Darren Hernandez, Director of Public
Works, Robert Newman; Director of Community Development, Tom Cole; and Director
of Recreation, Community Services, Arts, and Open Space, Rick Gould, for their
continuing efforts in administering the financial operations of the City in a conservative
and responsible manner.
Sincerely,
Carmen Magana
Director of Administrative Services/City Treasurer
CM:SC:hds
C�\C . Spo ae�
vii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Clarita
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2015
*4*044W 4A*0
Executive Director/CEO
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2016
City Council
Bob Kellar MAYOR
Dante Acosta MAYOR PRO TEM
Marsha McLean COUNCILMEMBER
TimBen Boydston COUNCILMEMBER
Laurene Weste COUNCILMEMBER
City Officials
Ken Striplin CITY MANAGER
Frank Oviedo ASSISTANT CITY MANAGER
Darren Hernandez DEPUTY CITY MANAGER
Joseph Montes CITY ATTORNEY
Tom Cole DIRECTOR OF COMMUNITY DEVELOPMENT
Richard Gould DIRECTOR OF PARKS, RECREATION & COMMUNITY
SERVICES
Robert Newman DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
ix
City of Santa Clarita
ORGANIZATION CHART
As of June 30, 2016
Santa Clarita Residents
I
City Council
City Manager
Administrative
I
I
Planning
�
Community
I
Community Preservation
I
Public
Redevelopment
�
Parks, Recreation &
I
Community Dev. Block Grant
�
City Manager's
I
Services
Urban Forestry
I
Development
City Clerk
Works
Comaramity Services
Office
Finance
I
Planning
�
I
Technology Services
Community Preservation
I
Special Districts
I
Redevelopment
�
Transit
Community Dev. Block Grant
�
I
Public Library
I
Economic Development
Urban Forestry
I
City Clerk
Engineering
I
Traffic Engineering
I
Building &Safety
General Services
Environmental Services
V4
I
Recreation
I
I
Sheriffs Department
Parks
I
Fire Protection
I
Community Services
I
Human Resources
I
Parks Planning & Open Space
Purchasing
I
Risk Management
X1
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of Santa
Clarita, California, (City) as of and for the year ended June 30, 2016, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the
table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
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.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
1
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City, as of June 30, 2016, 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.
Emphasis of Matter
As described in Note 1 to the financial statements, the City adopted Governmental Accounting
Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, and GASB
Statement No. 82, Pension Issues — An Amendment of GASB Statements No. 67, No. 68 and No. 73,
effective July 1, 2015. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis (pages 4 through 13), schedules of revenues, expenditures and changes in fund
balance — budget and actual for the General fund and each major special revenue fund (pages 77 through
81), schedule of funding progress (page 82), schedule of changes in the City's net pension liability and
related ratios (page 83), and schedule of contributions (pages 84 through 85) be presented to supplement
the basic financial statements. Such information, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements and budgetary comparison schedules, and statistical
section, are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
2
The combining and individual nonmajor fund financial statements and budgetary comparison schedules
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements 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 auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual nonmajor fund
financial statements and budgetary comparison schedules are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2016, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe 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
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 City's internal control
over financial reporting and compliance.
4 L A7F G(.P
Rancho Cucamonga, California
December 21, 2016
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2016
This discussion and analysis of the City of Santa Clarita's (the City) financial performance provides an
overview of the financial activities of the City for the fiscal year ended June 30, 2016. Our analysis
includes information regarding the City's overall financial position and results of operations to assist users
in evaluating the City's financial position, a discussion of significant changes that occurred in funds, and
information regarding significant budget variances. In addition, it describes the activities during the year
for capital assets and long-term debt. We end our discussion and analysis with a description of currently
known facts, decisions and conditions that are expected to have a significant effect on the financial
position or results of operations. Please read it in conjunction with the accompanying transmittal letter, the
basic financial statements and the accompanying notes to those financial statements.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $1.08
billion. Of this amount, $102.1 million represents unrestricted net position that may be used to
meet the City's ongoing obligations to citizens and creditors (Table 1).
• The City's total net position increased by $23.4 million. Net position of the business -type activities
decreased by $1.5 million, or 1.8%, and the net position of the governmental activities increased
by $24.9 million (Table 2).
• The net capital assets of the City's governmental activities decreased by $4.8 million, or 0.5%
over last fiscal year. The decrease was in part due to reductions in construction in progress and
infrastructure of $4.2 million, and the transfer of land for the development of affordable housing of
$1.1 million. See Note 7 to the financial statements for additional information.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $223.4 million. This represents an increase of $26.5 million as compared to the
prior year.
• Within governmental funds, the General Fund reported a fund balance of $141.1 million, an
increase of $24.6 million over the prior year.
USING THIS ANNUAL REPORT
The financial statements presented herein include all of the activities of the City of Santa Clarita and its
component unit using the integrated approach as prescribed by Governmental Accounting Standards
Board (GASB) Statement No. 34. The three components of the basic financial statements are as follows:
1) Government -Wide Financial Statements
The Government -Wide Financial Statements present the financial picture of the City from the
economic resources measurement focus using the accrual basis of accounting in a manner
similar to a private -sector business. These statements include all assets of the City (including
infrastructure) and deferred outflows of resources as well as all liabilities (including long-term
debt) and deferred inflows of resources.
USING THIS ANNUAL REPORT (CONTINUED)
2) Fund Financial Statements
The Fund Financial Statements include statements for each of the three categories of activities:
governmental, proprietary and fiduciary. For governmental activities, these fund statements tell
how these services were financed in the short term, as well as what remains for future spending.
Fund financial statements also report the City's operations in more detail than the
government -wide statements by providing information about the City's most significant funds and
other funds.
3) Notes to the Basic Financial Statements
The notes provide additional information necessary to enable the user to fully understand the
various financial statements.
In addition to the basic financial statements and notes, this report contains other supplementary
information.
REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS
The Statement of Net Position and the Statement of Activities
One of the most important questions asked about the City's finances is, "Is the City as a whole better or
worse off as a result of the year's activities?" The Statement of Net Position and the Statement of
Activities report information about the City as a whole, and its activities, in a way to answer this question.
These statements include all assets and liabilities of the City using the accrual basis of accounting, which
is similar to the accounting used by most private -sector companies. All of the current year's revenues and
expenses are taken into account, regardless of when cash is received or paid.
The Statement of Net Position reports all of the City's assets and deferred outflows of resources, and
liabilities and deferred inflows of resources, with the difference between the two reported as net position.
Net position is one way to measure the City's financial health or financial position. Over time, increases or
decreases in the City's net position is an indication of whether its financial health is improving or
deteriorating. Other things to consider are non-financial factors, such as changes in the economy due to
external factors that would cause an increase or decrease in consumer spending.
The Statement of Activities presents information relating to how the City's net position changed during the
fiscal year. All activities resulting in changes in net position are reported when earned or incurred,
regardless of the receipt or disbursement of the related transaction's cash flows. Some of the revenues
and expenses reported in this statement will result in future fiscal period cash flows, such as the receipt of
uncollected taxes and the payment of interest expense or compensated absences.
In the Statement of Net Position and the Statement of Activities, we separate the City's activities as
follows:
Governmental Activities — Most of the City's basic services are reported in this category, including
general administration (City Manager, City Clerk, Finance, etc.), public safety, public works, parks,
recreation and community services, and community development (planning and engineering). These
activities are distinguished due to the use of property taxes, sales tax, transient occupancy tax, user fees,
interest income, franchise fees, state and federal grants, contributions from other agencies, and other
revenues to finance these activities.
Business -Type Activities — City functions that are intended to be primarily self-supporting through the
imposition of user fees and charges are reported in the business -type activity category. Business -type
activities for the City consist of transit activities related to the operation of the City's local public
transportation system.
REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS
(CONTINUED)
Component Unit Activities — The City of Santa Clarita is the primary government unit to one legally
separate entity. The financial activity and data of the Santa Clarita Public Financing Authority has been
accounted for within the funds of the City, and therefore, separate component unit financial information is
not presented within the financial statements.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS — FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts used to account for and accumulate financial information related
to a specific activity or objective. Some funds are required to be established by State law and bond
covenants; however, management established many other funds to help it control and manage money for
particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and
other resources. The fund financial statements provide detailed information about the most significant
funds and other funds — not the City as a whole. The City's three types of funds are governmental,
proprietary and fiduciary.
Governmental Funds — Most of the City's basic services are reported in governmental funds.
Governmental fund financial statements focus on how money flows in and out of those funds and the
balances left at year-end that are available for spending. These funds are reported using an accounting
method called "modified accrual" accounting, which measures cash and all other financial assets that can
readily be converted to cash. The governmental fund statements provide a detailed short-term view of the
City's general government operations and the basic services it provides. Governmental fund information
helps determine whether there are more or fewer financial resources that can be spent in the near future
to finance the City's programs. Because the focus of the governmental funds is narrower than that of the
government -wide financial statements, it is useful to compare the information presented for the
governmental funds with similar information presented for the governmental activities in the government -
wide financial statements. Reconciliation of the Fund Financial Statements to the Government -Wide
Financial Statements is provided to explain the differences created by this integrated approach.
The City reports governmental fund financial information within 33 governmental funds. The General
Fund, Bridge and Thoroughfare Fund, Developer Fees Fund, Public Library Fund and Landscape
Maintenance District Fund are presented separately as major funds in the governmental fund balance
sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund
Balances. Financial data for the remaining 28 governmental funds are combined into a single, aggregated
presentation. Supporting financial information on each of the other governmental funds is also provided
within the report.
Proprietary Funds — The City maintains two different types of proprietary funds. When the City charges
customers for the services it provides, these services are generally reported in a type of proprietary fund
known as an enterprise fund. Enterprise funds are used to report the same functions presented as
business -type activities in the government -wide financial statements, but the proprietary fund statements
provide more detail and additional information, such as a statement of cash flows. The City uses the
Transit Enterprise Fund to account for the activities related to transit operations.
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City's various functions. The City uses three internal service funds to account for costs related to self-
insurance, computer replacement and vehicle -equipment replacement.
Proprietary funds are reported in the same way all activities are reported in the Statement of Net Position
and the Statement of Activities. The proprietary fund financial statements provide separate information for
the Transit Enterprise Fund, which is considered to be a major fund of the City. All of the internal service
funds are combined into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is provided in the form of combining statements in the
supplementary information section of this report.
THE CITY AS TRUSTEE — FIDUCIARY FUND STATEMENTS
Reporting the City's Fiduciary Responsibilities
The City is the trustee, or fiduciary, for certain funds held for the benefit of other parties outside of the
City. The City's fiduciary activities are reported in separate Statements of Fiduciary Net Position and
Statement of Changes in Fiduciary Net Position. These activities were excluded from the City's other
financial statements because the City cannot use these assets to finance its operations. The City is
responsible for ensuring that the assets reported in these funds are used for their intended purposes.
NOTES TO THE BASIC FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided in
the government -wide and fund financial statements.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the comparison of budget and actual results for the major
governmental funds, other post -employment benefits schedule of funding progress, schedule of changes
in the City's net pension liability and related ratios, and a schedule of the City's pension contributions.
This section is located after the Notes to Financial Statements.
The combining statements referred to earlier in connection with the other governmental funds, internal
service funds and fiduciary funds are presented immediately following the required supplementary
information described in the previous paragraph in the supplementary information section.
THE CITY AS A WHOLE
The analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the
City's governmental and business -type activities.
The
City's
net position may be analyzed and used as an indicator of the City's
overall financial condition.
The
City's
combined net position increased by $23.4
million, increasing from $1.05
billion to $1.08 billion.
THE CITY AS A WHOLE (CONTINUED)
TABLE 1
CITY OF SANTA CLARITA'S NET POSITION
Governmental ActiNlies
Business -type Actimhes
1,115,278
Total
108,454,892
2016 2015
2016 2015
2016
$ 259,492,495
2015
ASSETS:
101,114,219
1,115,278
981,976
108,454,892
102,096,195
30,053,700
Current and Other Assets
$ 259,492,495
$ 228,301,801
$ 7,388,268
$ 7,302,688
$ 266,880,763 $
235,604,489
Capital assets, net
844,844,011
847,862,095
76,687,260
78,495,871
921,531,271
926,357,966
Noncurrent Assets
26,412,670
29,892,432
-
-
26,412,670
29,892,432
TOTAL ASSETS
1,130,749,176
1,106,056,328
84,075,528
85,798,559
1,214,824,704
1,191,854,887
DEFERRED OUTFLOWS OF RESOURCES:
6,023,063
3,608,702
151,201
131,436
6,174,264
3,740,138
LIABILITIES:
Noncurrent Liabilities
Other Liabilities
TOTAL LIABILITIES
NET POSRION:
Net investment in
capital assets
Restricted
Unrestricted
TOTAL NET POSITION
107,339,614
101,114,219
1,115,278
981,976
108,454,892
102,096,195
30,053,700
29,826,359
3,215,168
3,424,596
33,268,868
33,250,955
137,393,314
130,940,578
4,330,446
4,406,572
141,723,760
135,347,150
87,150,698
73,541,304
-
-
87,150,698
73,541,304
2,925,290
7,154,505
107,260
260,580
3,032,550
7,415,085
810,324,041
818,817,043
76,687,260
78,495,871
887,011,301
897,312,914
87,150,698
73,541,304
-
-
87,150,698
73,541,304
The City's net position is made up of three components: Net Investment in Capital Assets, Restricted Net
Position and Unrestricted Net Position.
As of June 30, 2016, assets exceeded liabilities by $1.08 billion. The largest component of the City's net
position, 82.4%, is represented by its $887.0 million net investment in capital assets (e.g., infrastructure,
land, buildings and improvements, equipment, and construction in progress) less accumulated
depreciation and any related outstanding debt used to acquire the capital assets. These capital assets
are used to provide services to the citizens, and therefore are not available to finance future operations.
In addition, resources necessary to repay the related debt must be provided by sources other than the
capital assets, as the assets themselves cannot be used to satisfy these liabilities.
An additional portion of the City's net position, 8.1%, represents resources subject to external restrictions
on how they may be used. The remaining 9.5% of unrestricted net position, $102.1 million, may be used
to meet the City's ongoing obligations to citizens and creditors.
Consistent with the prior year, at
98.978,896
current fiscal year, the City is able
79,211,600
3,101,763
2,766,972
102,080,659
81,978,572
$
996,453,635
$
971,569,947
$ 79,789,023
$ 81,262,843
$ 1,076,242,658
$ 1,052,832,790
The City's net position is made up of three components: Net Investment in Capital Assets, Restricted Net
Position and Unrestricted Net Position.
As of June 30, 2016, assets exceeded liabilities by $1.08 billion. The largest component of the City's net
position, 82.4%, is represented by its $887.0 million net investment in capital assets (e.g., infrastructure,
land, buildings and improvements, equipment, and construction in progress) less accumulated
depreciation and any related outstanding debt used to acquire the capital assets. These capital assets
are used to provide services to the citizens, and therefore are not available to finance future operations.
In addition, resources necessary to repay the related debt must be provided by sources other than the
capital assets, as the assets themselves cannot be used to satisfy these liabilities.
An additional portion of the City's net position, 8.1%, represents resources subject to external restrictions
on how they may be used. The remaining 9.5% of unrestricted net position, $102.1 million, may be used
to meet the City's ongoing obligations to citizens and creditors.
Consistent with the prior year, at
the end of the
current fiscal year, the City is able
to report positive
balances in both categories of
governmental
and business -type net position.
Net position for
governmental activities increased
by $24.9 million
over the prior year. The unrestricted
net position of the
business -type activities increased
by $3343791.
E
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities decreased by $28.5 million or 13.7% due in part to the one-time
reversal of the allowance for notes to the RDA Successor Agency of $12.6M in the prior year, as well as a
decrease of $11.4 million in operating and capital grants and contributions. The cost of all governmental
activities this year was $147.8 million, a decrease of 3.3% over the past year. As shown in the Statement
of Activities, the governmental activities expenditures were ultimately financed in part by the taxpayers, as
$50.5 million in revenues were generated by service revenues received from the performance of these
activities; another $7.7 million was received from government agencies and other organizations that
subsidized certain programs with operating grants and contributions; and another $23.6 million in
revenues was generated from capital grants and contributions. Overall, the City's governmental program
and general revenues amounted to $179.1 million, which funded the expenditures and resulted in a $24.9
million increase in net position.
TABLE 2
CITY OF SANTA CLARITA'S CHANGES IN NET POSITION
Business -Type Activities
Business -type activities decreased the City's net position by $1.5 million for the current year.
Business -type activities revenues increased by $3.8 million during the year for a total of $20.3 million in
revenues, not including the $6.4 million of transfers in from other governmental activities. The increased
revenue was largely due to an increase in capital grants and contributions of $2.0 million that included
federal funds for the purchase of 5 replacement CNG commuter buses. Related transit activity expenses
increased by $641743.
Governmenal Activities
Business -type Activities
ToUI
2016
2015
2016
2015
2016
2015
Program Revenues:
Charges for services
$
50,478,658
$
47,745,405
$
7,545,433
$ 6,779,579
$ 58,025,091
$
54,524,994
Operatly grants and contbbutans
7,705,545
12,561,608
9,153,469
8,126,227
15,85$044
20,689,8115
Capital grants and contnbull
23,602,525
30,107,231
3,504,305
1,523,561
27,108,831
31,630,792
General Revenues.
Taxes:
Property texas
40,072,597
38,556,890
-
-
40,072,597
361556,890
Mistakes
51,526,137
47,248,617
-
-
51,526,137
47,248,817
Clear
Otb
5,663,439
2,946,941
59,0892
17,5
5,M,525
2,964,533
Capital Contrintlons
-
15,780,230
-
-
-
15,780,230
Reversal of Allowance for Notes to ROA Successor Agency
12,633,832
12,633,1112
Total Revenues
179,066,902
207,590]54
20,263,323
15448958
199,332,225
224,029,713
Coastal government
39,155,006
4,224,813
-
-
39,155,006
46,224,813
Public safety
23,778,931
22,235,368
-
-
23,A8,931
22,235,36B
Parks, recreation and community services
23,350,273
22,519,337
-
-
23,350,273
22,619,337
Public works
30,467,720
3,103,144
-
-
3,457,720
36,103,144
Community development
1015051906
5,720,237
-
-
10,505,936
5,720,237
Onalbcaled Infrastructure deprecial
18,342,933
18,072,657
-
-
18,342,933
16,072,557
Interest and flscal charges
2,194,161
1,827,094
-
-
2,194,181
1,827,094
Transit
26,127,407
28,062,668
28,127,407
26,062,668
Total Expenses
147,794,950
152,802,650
26,127,407
28,062,668
175,92$357
160,855,318
IncreaselOecrease In Net Poston Before Transfers
31,273,952
54,778,104
(7,664,084)
(11,613,709)
23,409,868
43,164,395
Transfers
(6,390,264)
(7,329,516)
6,390,254
7,329,516
Changes in Net PosBion
24,863,688
47,448,598
(1,473,8211)
(4,284,193)
23,409,868
43,164,395
Net Positbn— Beginning of Year
971,569,947
954,425,101
81,262,843
86,650,756
1,052,832,790
1,052,832,790
Restatements
(30,303,742)
(1,103,720)
(31,407,462)
Net Position— Beginning of Year, as heated
971,569,947
924,121,359
81,262,843
85,547,436
1,052,832]90
1,021,425,328
Net Positbn — End a Year
It
998.453.635
$
971.559.947
$
79]69.023
$ 81.262.843
$ 1.075.242658
It
1.064.589]23
Business -Type Activities
Business -type activities decreased the City's net position by $1.5 million for the current year.
Business -type activities revenues increased by $3.8 million during the year for a total of $20.3 million in
revenues, not including the $6.4 million of transfers in from other governmental activities. The increased
revenue was largely due to an increase in capital grants and contributions of $2.0 million that included
federal funds for the purchase of 5 replacement CNG commuter buses. Related transit activity expenses
increased by $641743.
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $223.4
million, an increase of $26.5 million over the prior year. Approximately $87.2 million is restricted and
already committed for specific restricted purposes.
The total governmental fund balance includes the general fund balance of $141.1 million, which increased
by $24.6 million over the prior year. The General Fund is the chief operating fund of the City of Santa
Clarita. The fund balance increase of $24.6 million is due in part to increases in tax revenues of $5.8
million, licenses and permit revenues of $1.7 million, and $1.1 million in investment income. General
government expenditures decreased by $7.8 million due to the one-time recording of a contingent liability
of $7.7 million in the prior fiscal year to the Redevelopment Successor Agency. The unassigned fund
balance of $50.7 million is available for spending at the City's discretion. More detailed information about
the City's classification of fund balances are presented in Note 12 to the financial statements.
Other major fund balance changes are noted below
• The
Bridge and Thoroughfare Fund has realized
a decrease of
$3.3 million from the prior year
due
in part to expenditures of $3 million for the
Golden Valley
Road Bridge widening project.
• The
Developer Fee Fund has realized an increase of $1.1 million
due to an increase in developer
fees.
• The
Public Library Fund has realized an increase
of $1.1 million in
its fund balance from the prior
year.
• The Landscape Maintenance District's fund balance increased $2.5 million from the prior year
In addition to the major funds, the fund balances for the other governmental funds experienced an
aggregate increase of $385,439.
The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail. The total net position for the Transit Enterprise Fund decreased over the
prior year by $1.5 million or 1.8%. The unrestricted portion of the business -type activities net position
increased by $334,791 from the prior year.
The Internal Service Funds net position decreased by $111,001 or 1.3%. The ending fund balance for
Internal Service Funds is $8.3 million, of which $7.1 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2015-2016 original (adopted) general fund budgeted expenditures and
transfers of $87.5 million to the final budgeted expenditures of $101.7 million results in a net increase of
$14.2 million.
Included in this net increase is $350,855 in committed purchase orders and contracts from the prior June
30 balance, as well as $3,954,265 of prior fiscal year operating and capital improvement projects
approved for carryover into fiscal year 2015-2016.
10
THE CITY'S FUNDS (CONTINUED)
Original
Continued Encumbrances
Beg.
Supplemental
Final
Budget +
Appropriations + =
Balance +
Changes =
Budget
$88,2422504 +
$3,9541265 +
$350,855 =
$921547,624 +
$9,8711088 =
$1021418,712
Comparing the beginning budget of $92.5 million with the final budget of $102.4 million indicates the
General Fund had supplemental budgetary appropriations of $9.9 million during the fiscal year. Included
in the supplemental appropriations are the results of this year's budget review.
During the mid -year budget review, budgeted general fund revenue had a net increase of $3,352,608.
Included in the net increase are $660,000 in sales tax revenue; $300,000 increase in property tax;
$312,095 in franchise fees; $300,000 in real property transfer tax; $298,000 in transient occupancy tax;
$150,000 in zone code fines; $172,000 in parks and recreation revenues; and a one-time reimbursement
of $824,000 for Golden Valley Road water and sewers.
At year-end, the City's actual revenues were $4.5 million more than the final budgetary estimates. Actual
expenditures were less than the final budgetary estimates by $21.3 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City had $921.5 million (net of accumulated depreciation) invested in a broad range of capital assets.
This investment in capital assets includes land, buildings and related improvements, vehicles and
equipment, and infrastructure (including infrastructure placed in service prior to July 1, 2002), such as
streets, bridges, traffic signals, medians, sidewalks, trails, sewers, curbs and gutters, and drainage
systems (see Table 3).
TABLE 3
CITY OF SANTA CLARITA'S CAPITAL ASSETS (net of depreciation)
Governmental Activities Business Type Activities Total
2016 2015 2016 2015 2016 2015
Land 147,141,108141,193,369 $15,087,880 $15,087,880 $162,228,986 $156,781,249
Construction in progress 5,922,009 18,351,762 1,736 - 5,923,745 18,351,762
Infrastructure, net 604,831,025 600,894,423 - - 604,831,025 600,894,423
Depreciable site improvements, net 30,042,019 30,173,283 10,245,906 10,814,127 40,287,925 40,987,410
Depreciable buildings and
improvements, net 52,730,777 53,534,783 30,441,413 31,324,760 83,172,190 84,859,543
Depreciable equipment, net 4,177,075 3,714,475 20,910,325 21,269,104 25,087,400 24,983,579
TOTALS $844,844,011 $847,862,095 $76,687,260 $78,495,871 $921,531,271 $926,357,966
Major capital asset events during the year included:
• Acquisitions and contributions of land totaling $7.0 million
Infrastructure additions
totaling $7.8 million
that
included $5.1 million for pavement projects, $1.7
million for trails, and $1.2
million for sewers
and
storm drains.
• Equipment additions in the Transit fund of $3.7 million for five CNG commuter buses.
Additional information on the City of Santa Clarita's capital assets can be located in Note 7 to the financial
statements.
11
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Debt Administration
At year-end, the City's total debt amounted to $38.5 million in bonds, notes, capital leases, contracts,
claims payable and compensated absences as shown in Table 4. A summary of debt activity for the year
follows.
TABLE 4
CITY OF SANTA CLARITA'S OUTSTANDING DEBT
The City's governmental activities had $38.4 million in debt at year-end. Governmental activities long-term
debt decreased overall by $2.4 million. During the fiscal year, the City issued Lease Revenue Bonds
totaling $24.3 million and entered into a Private Placement Lease for $6.9 million. Proceeds were used to
refund Lease Revenue Bonds, Certificates of Participation, and Refunding Certificates of Participation.
Principal payments totaled $2.8 million.
No new debt related to business -type activities was issued or refinanced during the current fiscal year.
During the fiscal year ended June 30, 2016, the City was able to meet its current year debt obligation in a
timely manner. State statutes limit the amount of general obligation debt a governmental entity may issue
to 15% of its adjusted assessed valuation. The debt limitation for the City as of June 30, 2016 was
$1302439073375. The calculation of the debt limitation is included in the statistical section.
Additional information on the City of Santa Clarita's debt can be located in Note 8 to the financial
statements.
12
Governmental
Activities
Business -type
Activities
Total
2016
2015
2016
2015
2016
2015
Refunding Certificates of
Participation, net
-
$8,084,126
$ - $
-
$0
$8,084,126
Certificates of Participation
-
15,220,000
-
-
-
15,220,000
Lease Revenue Bonds
26,012,352
11,873,984
-
-
26,012,352
11,673,964
Contract and Leases
138,877
217,615
-
-
138,877
217,615
Private Placement Lease
6,328,411
6,328,411
Loans
200,000
300,000
-
-
200,000
300,000
Compensated Absences
3,249,285
3,313,500
82,397
75,251
3,331,682
3,388,751
Claims Payable
2,449,815
1,993,915
2,449,815
1,993,915
TOTAL
$38,378,740
$40,803,120
$82,397
$75,251
$38,461,137
$40,878,371
The City's governmental activities had $38.4 million in debt at year-end. Governmental activities long-term
debt decreased overall by $2.4 million. During the fiscal year, the City issued Lease Revenue Bonds
totaling $24.3 million and entered into a Private Placement Lease for $6.9 million. Proceeds were used to
refund Lease Revenue Bonds, Certificates of Participation, and Refunding Certificates of Participation.
Principal payments totaled $2.8 million.
No new debt related to business -type activities was issued or refinanced during the current fiscal year.
During the fiscal year ended June 30, 2016, the City was able to meet its current year debt obligation in a
timely manner. State statutes limit the amount of general obligation debt a governmental entity may issue
to 15% of its adjusted assessed valuation. The debt limitation for the City as of June 30, 2016 was
$1302439073375. The calculation of the debt limitation is included in the statistical section.
Additional information on the City of Santa Clarita's debt can be located in Note 8 to the financial
statements.
12
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
Our long history of conservative and strategic budget practices has allowed the City to maintain a
balanced budget every year. Since the Great Recession, our organization has understood that there will
continue to be economic peaks and valleys, and we need to be prepared and positioned for times when
the economy is weak.
General Fund sales tax revenue continues to be the largest revenue source to operate general
governmental functions, accounting for 35.9% or $37.0 million as projected in the 2016-2017
budget. This is 4.3% higher than 2015-2016 budget.
Property tax revenues account for 32.9% of the General Fund budget or $34.0 million in 2016-
2017. The County Assessor's office makes changes to the City's property tax roll daily to reflect
transfers in ownership, new construction, assessment appeals, parcel splits and other dynamic
changes.
Budgeted General Fund revenues for fiscal year 2016-2017 are $103.1 million and operating and capital
expenditures are budgeted at $102.8 million. The City's 2016-2017 operating and capital budget for all
funds is $220.0 million.
The City remains dedicated to service excellence, teamwork and creativity. City staff continues to do
more with less, find creative ways to maintain services revered by our community, and provide award-
winning programs. The 2016-2017 budget remains to be a reflection of the City's commitment to the
residents of Santa Clarita. This is consistent with the City's long tradition of ensuring that programming for
Santa Clarita's youth and children is a priority to help promote growth and curb teen crimes. A copy of the
City's 2016-2017 budget can be obtained by contacting the City Finance Division or visiting the web at
www.santa-clarita.com/citvhall/dei)artments/cmo/citybudget.
13
GOVERNMENT -WIDE FINANCIAL STATEMENTS
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 309 2016
Assets:
Current assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Prepaid costs
Due from other governments
Total Current Assets
Noncurrent assets:
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Loans receivable
Land held for resale
Notes to RDA Successor Agency
Other post -employment benefits asset
Capital assets:
Nondepreciable assets
Depreciable assets, net
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Deferred outflows related to pensions
Unamortized loss on refundings
Total Deferred Outflows of Resources
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
Interest payable
Deposits payable
Due to other governments
Unearned revenues
Compensated absences
Claims andjudgments
Bonds, loans and capital leases
Total Current Liabilities
Noncurrent liabilities:
Compensated absences
Claims and judgments
Bonds, loans and capital leases
Developer credits
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred inflows related to pensions
Governmental Business -type
Activities Activities Total
23892049314 $ 49270,156 $ 2429474,470
6369295 308
6365603
6499794 11,646
661,440
998169572 -
9,816,572
4999218 215,582
7145800
996869302 2,890,576 129576,878
25994929495 753885268 2669880,763
2069386 - 206,386
366 - 366
294579631 - 2,457,631
9109455 - 9105455
1596879058 - 15,6875058
791509774 - 7,1505774
15390639115
15,0895616
1685152,731
69197809896
615597,644
753,3781540
871,256,681
76,687,260
947,943,941
1913097499176
84,0755528
1921498245704
4,131,733 151,201
45282,934
198919330 -
15891,330
690239063 1519201
651749264
1299139573 3,163,708
16,077,281
589345 -
585345
299449401 -
25944,401
797349478 -
7,734,478
6059545 -
605,545
290119570 519460
2,063,030
195159623 -
1,515,623
292709165 - 2,270,165
3090539700 35215,168 33,268,868
192379715 30,937 1,2689652
9349192 - 934,192
3094099475 - 30,409,475
4499869509 - 4459865509
2997719723
15084,341
30, 856,064
10793399614
15115,278
108,4541892
13793939314
49330,446
1415723,760
299259290 107,260 35032,550
See accompanying notes to financial statements.
ILI
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION (CONTINUED)
JUNE 309 2016
Net Position:
Net investment in capital assets
Restricted:
Landscape maintenance
Transportation
Open Space preservation
Public safety
Public library
Air quality management
Storrawater
Public education and government
Tourism marketing
Low and moderate -incoming housing
Capital improvements
Unrestricted
Total Net Position
Governmental Business -type
Activities Activities Total
81093249041 $ 761687,260 $ 887,011,301
3798759311
- 37,875,311
1497409999
- 145740,999
693909594
- 6,3901594
197749060
- 1,7749060
8509857
- 850,857
7179331
- 717,331
594769592
- 5,4769592
196839950
- 1,683,950
8759915
- 875,915
5949823
- 5945823
1691709266
- 161170,266
9899789896 391019763 102,080,659
$ 99694539635 $ 799789,023 $ 1,076,242,658
See accompanying notes to financial statements.
15
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2016
Functions/Programs Expenses
Governmental activities:
Program Revenues
39,155,006 $
Operating
Capital
Charges for Contributions
Contributions
Services and Grants
and Grants
General government $
39,155,006 $
21,977,246 $
602,043
-
Public safety
23,778,931
102,551
746,471
19706,964
Parks, recreation and community service
23,350,273
8,142,336
11,954
78,851
Public works
30,467,720
17,339,507
4,911,946
21,8169711
Community development
10,505,906
1,857,018
1433,131
-
Unallocated infrastructure depreciation
189342,933
Interest and fiscal changes
2,1945181
-
-
Total governmental activities
147,7945950
5054789658
79705,545
239602,526
Business -type activities:
Transit enterprise
28,1271407
7,546,433
99153,499
39504,305
Total primary government $
175,922,357 S
58,025,091
$
1698599044 S
279106,831
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Propety taxes in lieu of motor vehicle fee
Investment income
Miscellaneous
Gain on sales of capital assets
Total General Revenues
Transfers
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
See accompanying notes to financial statements.
16
Net (Expense) Revenues and
Changes in Net Position
Governmental Business -type
Activities Activities Total
$ (16,575,717) $
- $ (1695759717)
(20,1621945)
- (2091629945)
(15,117,132)
- (1591179132)
135600,444
- 13,600,444
(71215,757)
- (7,2159757)
(18,342,933)
- (1893429933)
(2,194,181)
- (291949181)
(665008,221)
128,783
-
(66,008,221)
(7,9239170) (7,923,170)
66,008,221) 77TTl7 7 1,3 TIT
40,072,597
-
40,072,597
37,807,385
-
37,807,385
8,392,789
-
8,392,789
3,813,437
-
3,813,437
1,383,743
-
1,383,743
128,783
-
128,783
4,142,959
59,086
4,202,045
1,080,771
-
1,080,771
459,709
-
459,709
97,282,173
59,086
979341,259
(6,390,264)
6,390,264
-
24,883,688
(19473,820)
23,4099868
971,569,947 81,2629843 1,052,832,790
$ 996,453,635 $ 79,789,023 $ 1,076,242,658
17
CITY OF SANTA CLARITA, CALIFORNIA
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Notes to RDA Successor Agency
Prepaid costs
Due from other governments
Due from other funds
Advances to other funds
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total assets
Liabilities, deferred inflows of resources,
and fund balances (deficit):
Liabilities:
Accounts payable and accrued liabilities
Deposits payable
Due to other governments
Unearned revenues
Due to other funds
Advances from other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund balances (deficit):
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflows of
of resources and fund balances (deficit)
Special Revenue Funds
Bridge and Developer
General Fund Thoroughfare Fees
130,261,818 $ 6,458,372 $ 5,279,667
480,986 11,532 -
384,607 15,964 16,146
9,017,822 - -
9,254,794 - 65432,264
202,769 - -
4,760,873 -
3,117,635 -
11,054,805 - 120,185
- - 703,345
99 - -
S 168,536,208 $ 6,485,868 $ 12,551,607
5,216,293 3809940 1,247,773
2,944,401 -
7,700,000
605,545
- 2,035,128
16,466,239 2,4165068 1,247,773
10,925,053 115532 6,552,449
10,9259053 115532 6,5529449
11,108,252
-
4,058,268 4,686,628
-
- 14,000
79,3679084
509757
50,6699580
- -
141,144,916
4,058,268 4,751,385
$ 168,536,208 $ 61485,868 $ 12,5511607
See accompanying notes to financial statements.
m
Special Revenue Funds
Landscape Non -major Total
Public Maintenance Governmental Governmental
Library District#1 Funds Funds
2,356,714 $
33,389,438 $
50,582,202 $
228,328,211
12
769659
61,596
630,785
5,838
839028
118,861
624444
125,024
275,918
397,808
9,816,572
-
-
2,457,631
2,457,631
-
-
-
15,687,058
38,061
168,441
179146
426,417
-
-
4,925,429
9,686,302
-
3,117,635
11,174,990
207,110
910,455
206,386 206,386
- - 267 366
S 21525,649 S 33,993,484 $ 58,974,436 S 2831067,252
321,380 1,4069608 $ 4,061,795 $
12,634,789
-
2,944,401
349478
7,734,478
-
605,545
- 3,117,635
3,117,635
99139,862 - -
1151749990
95461,242 15406,608 75213,908
38,2119838
3,9269588 215415,622
3,9269588 215415,622
38,061 168,441 179146
11,331,900
- 32,4189435 45,987,367
87,150,698
- -
14,000
1,830,971
81,248,812
(6,973,654) - (1,544)
43,6949382
(6,935,593) 32,5869876 47,8339940
223,4399792
$ 2,5259649 S 33,993,484 $ 58,974,436 S 283,0679252
19
CITY OF SANTA CLARITA, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 309 2016
Fund balances of governmental funds
Amounts reported for governmental activities in
the statement of pet position are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the governmental funds. Those
capital assets consist of:
Nondepreciable assets
Depreciable assets, net of accumulated depreciation
Revenues reported as deferred inflows in the governmental funds
do not provide current financial resources but are
recognized in the Statement of Activities
Other post -employment benefit assets are not available to pay for
current -period expenditures and therefore are not reported in the
government funds.
Amounts reported for net pension liability are not due in the current period
and therefore are not reported in the governmental funds. Related
components that will affect the net pension liability in future measurement
years are reported as deferred outflows and deferred inflows of resources
are therefore not reported in the governmental funds.
Net pension liability
Deferred outflows of resources related to pensions
Deferred inflows of resources related to pensions
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the governmental funds. Those long-term
liabilities consist of:
Lease revenue bonds
Private placement lease payable
Capital leases
Loans payable
Deferred outflow of resources related to loss on refunding
Compensated absences
Bridge and Thoroughfare developer payables
Accred interest payable on long-term liabilities do not require the
use of current financial resources and therefore are not reported in the
governmental funds.
Internal service finds are used by management to charge the costs of
certain activities, such as insurance, and vehicle and computer
replacement, to individual funds. These assets, deferred outflows/inflows of resources
and liabilities of the internal service funds are included in governmental activities in
the Statement of Net Position.
Net Position of Governmental Activities
$ 153,063,115
690,665,462
See accompanying notes to financial statements.
20
(29,658,403)
4,116,005
(2,9149154)
(26,012,352)
(6,328,411)
(138,877)
(200,000)
1,891,330
(35245,016)
(445986,509)
$ 223,439,792
843,728,577
21,415,622
7,150,774
(28,4569552)
(79,0199835)
(58,345)
8,253,602
$ 996,4539635
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF REVENUES, EXPENI
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
Ff� �
Revenue Funds
Bridge and Developer
General Thoroughfare Fees
84,035,464 $ - $
7,283,898
292,869
9,376,146 -
2,211,873 3159665 919643
5285836 - -
6589588 159609002
589,553 - 4539834
10493189639 974,253 2,5059479
135520,450 -
22,003,693 152429645
215103,557 - -
12,043,887 3,344,760
55959,372 - -
703,663 700193 365032
216,983
755334,622 4,2619936 1,2789677
285984,017 (39287,683) 1,2269802
19491,715 - -
(5,833,447) (49136) (869596)
(45341,732) (4,136) (869596)
245642,285 (35291,819) 1,1409206
116,5025631 7,3509087 3,611,179
141,144,916 $ 4,058,268 S 4,751,385
See accompanying notes to financial statements.
21
Special Revenue Funds
Landscape Non -major Total
Public Maintenance Governmental Governmental
Library District#1 Funds Funds
$ 691139602 $
9395937 $
509,731 $
91,598,734
-
1599239892
10,5785549
265502,441
150719581
-
-
712839898
-
689
31908704
31,380,753
859000
-
8645480
10,3259626
309896
5385796
7485745
359379618
-
-
444,917
9739753
-
-
39654,209
6,272,799
1849269
329210
5299858
19789,724
694139767
179434,835
48,418,373
1805065,346
591359419
1292515659 $
590629453 $
3559699981
-
-
5305833
2357779171
150719581
1459254
785851
21,3279662
-
689
22,547,714
375937,050
469558
-
4,668,063
1056739993
-
292649628
69858,437
10,5625953
579904
-
29794,236
25852,140
999545
396225377
35938,905
- - 600,910 600,910
593399426 1496629230 4697635874 1475640,765
190749341 29772,605 1,654,499 32,4249581
31532500
31,32500
196725352
156729352
- (325907,353)
(3259079353)
105000 105438,848
111940,563
(29760)
(2365015)
(11,797,907)
(17596061)
(29760)
(2269015)
(19269,060)
(5,9305299)
150719581
295465590
385,439
26,494,282
(89007,174) 309040,286 47,448,501 19659459510
5,593),5 , 7 ,<<
22
CITY OF SANTA CLARITA, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 309 2016
Net changes in fund balances - total governmental funds $ 26,494,282
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense in the current period.
Capital outlay $ 10,562,953
Depreciation expense (21,995,853)
Disposal of capital assets 8,182,302
(3,250,598)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the governmental funds. 1,541,395
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net position.
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net position.
Also, governmental funds report the effect of premiums and discounts when
debit is first issued, whereas these amounts are deferred and amortized in the
statement of activities. There was an issuance of debt pertaining to two capital leases
in the current period, and the following includes the issuance of debt for the
capital leases and the amounts of repayment of long-term liabilities:
Changes in compensated absences
66,031
Bond proceeds
(31,325,000)
Bond premimn
(1,672,352)
Lease revenue bonds
11,595,000
Certificates of participation bonds
23,350,000
Private placement lease payable
656,589
Capital leases
78,648
Loans payable
100,000
Loss on refundings
15891,330
Amortization of premiums of long-term liabilities
78,964
Amortization of discounts of long-term liabilities
(45,784)
4,773,426
The issuance of Bridge and Thoroughfare district credits does not impact governmental funds,
but increases long-term liabilities in the statement of net position. Redemptions
of district credits does not impact expenditures in the governmental funds,
but reduces long-term liabilities in the statement of net position.
Net impact of issuance and redemption of district credits
(5,868,927)
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. These expenses consists of the following:
Changes in interest payable for long-term liabilities
400,380
Changes and amortization of other post -employment benefit asset
(4,000)
Changes in net pension liabilities
908,731
1,305,111
Internal services funds are used by management to charge the costs of certain
activities, such as insurance, and vehicle and computer replacement, to
individual funds. The net revenue (expense) of the internal service funds
is reported with governmental activities.
(111,001)_
Change in net position of governmental activities
$
24,883,688
See accompanying notes to financial statements.
23
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 309 2016
See accompanying notes to financial statements.
IV!
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
Assets:
Current assets:
Cash and investments
$ 49270,156
$ 9,8765103
Receivables:
Accounts
308
5,510
Interest
11,646
25,350
Prepaid costs
215,582
725801
Due from other governments
2,8909576
-
Total current assets
79388,268
939795764
Noncurrent assets:
Capital assets:
Land and construction in progress
15,089,616
Site improvements, net of accumulated depreciation
10,245,906
Building and improvements, net of accumulated depreciation
30,441,413
-
Equipment, net of accumulated depreciation
20,910,325
1,115,434
Total noncurrent assets
769687,260
1,115,434
Total assets
849075,528
11,095,198
Deferred outflows of resources:
Deferred outflows related to pensions
151,201
15,728
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
351635708
278,784
Compensated absences
519460
4,269
Claims and judgements
-
1,515,623
Total current liabilities
3,215,168
1,7985676
Noncurrent liabilities:
Compensated absences payable
30,937
Claims and judgments
-
934,192
Net pension liability
19084,341
1135320
Total noncurrent liabilities
1,115,278
1,047,512
Total liabilities
493309446
2,846,188
Deferred inflows of resources:
Deferred amounts related to pensions
107,260
11,136
Net Position:
Net investment in capital assets
76,687,260
1,115,434
Unrestricted
3,101,763
7,138,168
Total net position
79,789,023
8,253,602
See accompanying notes to financial statements.
IV!
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Operating revenues:
Charges for services
Otherrevenues
Total operating revenues
Operating expenses:
Administration and personnel services
Transportation services
Services and supplies
Depreciation expense
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Intergovernmental revenue
Investment income
Gain on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before transfers and capital contributions
Transfers and capital contributions:
Transfers in
Transfers out
Capital contributions
Total transfers and capital contributions
Change in net position
Net position
Net position, beginning of year
Net position, end of year
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
$ 6,557,530 $ 29689,415
988,903 159412
7,546,433 29704,827
25209,975
175,313
18,458,987
-
1,974,903
29249,464
5,483,542
220,359
28,127,407
29645,136
(20,580,974)
59,691
9,153,499
-
59,086
1669552
-
32,722
9,212,585
199,274
(11,368,389)
258,965
See accompanying notes to financial statements.
25
6,5905158 765219
(1999894) (446,185)
3,504,305
9,894,569 (369,966)
(1,473,820) (111,001)
81,262,843 8,364,603
791789,023 $ 8,253,602
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
Cash flows from operating activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from other services
Net cash provided by (used in) operating activities
Cash flows from noncapital financing activities:
Cash transfers out
Cash transfers in
Intergovernmental revenues
Net cash (used in) provided by noncapital financing activities
Cash flows from capital and related financing activities:
Capital contributions
Acquisition and construction of capital assets
Proceeds from disposal of capital assets
Net cash provided (used) for capital and
related financing activities
Cash flows from investing activities:
Interest received
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of year
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provide by (used in) operating activities:
Depreciation
Pension Expense
(Increase)/Decrease in accounts receivable
Decrease in prepaid expense
Payments related to deferred outflows for contributions subsequent to measurement date
Increase/(Decrease) in accounts payable
Increase in claims and judgments
Increase in compensated absences
Total adjustments
Net cash provided by (used in) operating activities
See accompanying notes to financial statements.
26
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
$ 69557,222 $
2,7541947
(21,5141402)
(1,700,125)
(15253,472)
(176,969)
988,903
-
(15,221,749)
877,853
(1999894) (446,185)
6,590,158 76,219
8,980,968 -
15,371,232 (369,966)
3,504,305
(3,674,931) (452,873)
- 32,722
(1709626) (420151)
569189 161,770
359046 249,506
4,235,110 9,626,597
$ 4,270,156 $ 9,876,103
$ (20,580,974) $ 59,691
55483,542
220,359
106,537
1106
(308)
50,120
125,202
675212
(1395761)
(145538)
(223,133)
26,227
455,900
7,146
1,816
5,3595225
818,162
(15,221,749) $
877,853
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Interest
Taxes
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Capital assets:
Land
Site improvements, net of accumulated depreciation
Building and improvements, net of accumulated depreciation
Infrastructure, net of accumulated depreciation
Total assets
Liabilities:
Accounts payable
Interest payable
Due to external parties
Bonds, due within on year
Bonds and notes, due in more than one year
Total liabilities
Net position (deficit):
Trust deficit
Private -purpose
Trust Fund
Agency Redevelopment
Funds Successor Agency
$ 1,0819876 $ 1,5689537
29663 3,825
4,787 -
3,746 797343479
- 222,579
- 10,224
197593571 191669084
9,937,976 -
- 90,454
82,776 -
- 39806,244
12,873,395 1496029426
4,250 51
- 405,717
12,869,145
- 679,670
- 499480,722
1298733395 50,566,160
See accompanying notes to financial statements.
27
$ (35,9631734)
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
Additions:
Property taxes
Investment income
Total Additions
Deductions:
Administrative expenses
Contractual services
Interest expense
Depreciation expense
Total Deductions
Change in Net Position
Net Position (deficit):
Trust deficit, beginning of year
Trust deficit, end of year
Private -purpose
Trust Fund
Redevelopment
Successor Agency
$ 2,533,101
22,591
2,555,692
40,743
88,098
6,128,168
90,159
6,347,168
(39791,476)
(32,172,258)
(35,963,734)
See accompanying notes to financial statements.
M
NOTES TO BASIC FINANCIAL STATEMENTS
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
These financial statements present the financial results of the City of Santa Clarita, California (the City) and
its component unit as required by accounting principles generally accepted (GAAP) in the United States of
America. Component units are legally separate entities for which the primary government is financially
accountable. The City has one component unit, the Santa Clarita Public Financing Authority (the Authority).
The Authority is governed by the Board of the Authority, which is comprised of City Council. Additionally,
the City and Authority have a financial benefit or burden relationship. Therefore, the entity is reported as a
blended component unit with the City's Comprehensive Annual Financial Report (CAFR). The City and the
component unit have a June 30 year-end.
The City was incorporated on December 15, 1987, as a general law city. The City operates under a council-
manager form of government and provides its citizens with a full range of municipal services, either directly
or under contract with the County of Los Angeles. Such services include public safety (police and fire
protection), building permit/plan approval, planning, community development, recreation, animal control, and
street maintenance.
Component Unit
The Authority was established in July 1991 as a joint powers authority between the City and the former
redevelopment agency for the purpose of providing financing and funding of public capital improvements and
the acquisition of property. On May 10, 2016, the City Council adopted Resolution 16-15 that removed the
Successor Agency from the agreement and substituted the Santa Clarita Parking Authority. The Authority's
financial data and activity are reported within the debt service and capital projects fund types of the City.
Separate financial statements for the Authority are not prepared.
B. Government -Wide and Fund Financial Statements
The City's government -wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all the activities of the City. The effect of interfund activity has been
removed from these statements, except for the interfund services provided and used. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business -type activities, which rely to a significant extent on fees and charges for support. Fiduciary activities
of the City are not included in these statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function, and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function. Taxes and other items not included
among program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds are reported as separate columns in the fund financial statements.
29
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting and Measurement Focus
The government -wide financial statements are presented on an "economic resources" measurement focus and
the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets,
infrastructure assets, long-term liabilities, and deferred inflows and deferred outflows of resources are
included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net
position. Under the accrual basis of accounting, revenues are recognized in the period in which they are
earned, while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made as prescribed by Governmental Accounting Standards Board (GASB)
Statement No. 34 in regard to interfund activities. All internal balances in the Statement of Net Position have
been eliminated, except those representing balances between the governmental activities and the business -
type activities, which are presented as internal balances and eliminated in the total primary government
column. In the Statement of Activities, internal service fund transactions have been eliminated; however,
those transactions between governmental and business -type activities have not been eliminated. The
following interfund activities have been eliminated:
Due to and from other funds
Advances to and from other funds
Transfers in and out
The City has conformed to the pronouncements of the GASB, which are acknowledged as the primary
authoritative statements of GAAP in the United States of America applicable to state and local governments.
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the "current financial resources" measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period
for property and sales tax, and 90 days for all other revenues. Expenditures generally are recorded when a
liability is incurred. However, debt service expenditures, expenditures related to compensated absences,
pension and other post -employment benefits, and the redemption of district credits are recorded only when
payment is due.
Property taxes, taxpayer -assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net
of estimated refunds and uncollectible amounts, intergovernmental revenues, charges for services, and interest
associated with the current fiscal period are all considered susceptible to accrual and so have been recognized
as revenues of the current fiscal period to the extent normally collected within the availability period, as
defined above. All other revenue items are considered measurable only when cash is received by the City.
30
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting and Measurement Focus (Continued)
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City. It is used to account for all financial resources of
the City that are not required to be accounted for in another fund.
The Bridge and Thoroughfare Special Revenue Fund is used to account for restricted district fees received
from developers as set by the State Subdivision Law and the Los Angeles County and City of Santa Clarita,
which are used for the construction of street, highway, bridge, and other thoroughfare in the Bouquet Canyon,
Eastside Canyon, Via Princessa, and Valencia districts. This fund also accounts for the issuance and
redemption of district credits associated with the contribution of infrastructure. The City has elected the
Bridge and Thoroughfare Special Revenue Fund as a major fund for public interest purposes.
The Developer Fees Special Revenue Fund is used to account for monies received from developers restricted
to fund specific projects and infrastructure maintenance throughout the City. Effective July 1, 2015, the City
has reclassified this fund as a major governmental fund.
The Public Library Special Revenue Fund is used to account for property tax receipts and disbursements
associated with the operation of the City of Santa Clarita Public Library.
The Landscape Maintenance District #1 Special Revenue Fund is used to account for property tax receipts
and disbursements related to the landscape maintenance district.
Proprietary Fund Financial Statements
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis
of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) and deferred inflows and
deferred outflows of resources are included in the Statement of Net Position. The Statement of Revenues,
Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in total net
position. Under the accrual basis of accounting, revenues are recognized in the period in which they are
earned, while expenses are recognized in the period in which the liability is incurred.
Operating revenues and expenses result from the operating and maintenance of the local public transit
services. The operating revenues consist of charges to customers for the service provided. Operating
expenses include the costs of providing these services, administrative expenses and depreciation expense. All
revenues and expenses not meeting these definitions and which are not capital in nature are reported as non-
operating revenues and expenses.
The
City reports
the following
major enterprise
fund:
The
Transit Enterprise
Fund is
used to account
for the operation of the City's local public transit bus system
31
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting and Measurement Focus (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position (Deficit) and a Statement of Changes
in Net Position (Deficit). The fiduciary funds represent a private -purpose trust fund and agency funds.
Fiduciary fund types are accounted for according to the nature of the fund. Agency funds are reported on the
accrual basis of accounting and are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations. Private -purpose trust funds are reported using the "economic
resources" measurement focus and the accrual basis of accounting.
The RDA Successor Agency Private Purpose Trust Fund is used to account for monies received from the Los
Angeles County Auditor Controller for the repayment of the enforceable obligations of the former Santa
Clarita Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an
approved Recognized Obligation Payment Schedule (ROPS).
The City reports the following agency funds:
The Assessment District No. 92-2 Fund is used to account for assets and liabilities held by the City as an
agent and related to the debt service activity on no -commitment special assessment debt.
The Assessment District No. 99-1 Fund is used to account for assets and liabilities held by the City as an
agent and related to the debt service activity on no -commitment special assessment debt.
The Community Facilities District No. 2002-1 Fund is used to account for assets and liabilities held by the
City as an agent and related to the debt service activity on no -commitment special assessment debt.
The Santa Clarita Watershed Recreation and Conservancy Authority is used to account for assets and
liabilities held by the City as an agent and related to the park and open space lands for the Santa Clarita
Watershed Recreation and Conservancy Authority (the Watershed Authority).
The Santa Clarita Public Television Authoritv is used to account for assets and liabilities held by the City as
an agent and related to the operations of the Santa Clarita Public Television Authority (the SCPTA).
Fund Types Reported by the City
Additionally, the City reports the following fund types:
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally
restricted or committed to expenditures for specified purposes.
The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest
and principal on long-term debt.
The Capital Projects Funds are used to account for financial resources used for the acquisition or construction
of major capital facilities (other than those financed by the proprietary funds).
The Internal Service Funds are used to account for the financing of special activities that provide services
within the City. Such activities include self-insurance, computer replacement, and vehicle replacement.
32
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Cash and Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of three
months or less from the date of acquisition. Cash and cash equivalents are combined with investments and
displayed as cash and investments. For purposes of the statement of cash flows of the proprietary fund types,
cash and cash equivalents include all investments, as the City operates an internal cash management pool that
maintains the general characteristics of a demand deposit account.
In accordance with GASB Statement No. 31, Accounting
and Financial Reporting for Certain
Investments
and for External Investment
Pools, highly liquid money market investments with maturities of
one year or
less at time of purchase are
stated at amortized cost. All
other investments are reported at fair
value. Fair
value is the price that would
be received to sell an asset in
an orderly transaction between market
participants
at the measurement date.
The unexpended bond proceeds of the City's bonds are classified as restricted assets because their use is
completely restricted to the purpose for which the bonds were originally issued. The City's cash and
investments held by fiscal agents are pledged to the payment or security of certain long-term debt issuances.
The California Government Code provides that these monies, in the absence of specific statutory provisions
governing the issuance of the bonds, may be invested in accordance with the ordinance, resolutions, or
indentures specifying the types of investments its trustees or fiscal agents may make.
The City also participates in the Los Angeles County Pooled Investment Fund.
In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of
GASB Statement No. 3), certain disclosure requirements, if applicable, are provided for deposit and
investment risk in the following areas:
Interest Rate Risk
Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
Foreign Currency Risk
As of July 1, 2015, the City adopted Governmental Accounting Standards Board ("GASB") Statement
No. 72, Fair Value Measurements and Application. GASB Statement No. 72 provides guidance for
determining a fair value measurement for reporting purposes, applying fair value to investments, and
disclosures related to the fair value hierarchy established by generally accepted accounting principles. The
fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair value: Level
1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable
inputs; Level 3 inputs are significant unobservable inputs.
33
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Land Held for Resale
Land parcels held for resale are recorded at the lower of cost or net realizable value. The cost of the land
includes all costs incurred that are directly associated with the acquisition of the land, including purchase
price, escrow costs, clearing land for use costs, demolition costs, etc.
F. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as "due to/from other funds" (i.e., current portion of interfund loans) or
"advances from/to other funds" (i.e., noncurrent portion of interfund loans). Any residual balances
outstanding between the governmental activities and business -type activities are reported in the government -
wide financial statements as "internal balances."
During the course of operations, numerous transactions occur between individual funds involving goods
provided or services rendered. There are also transfers of revenues from funds authorized to receive the
revenue to funds authorized to expend it. Any residual balances outstanding between governmental and
business -type activities are reported in the government -wide financial statements as "transfers."
G. Property Taxes
Property taxes and special assessment taxes are considered enforceable liens on real property on July 1, the
beginning of the fiscal year, and are due in two installments on November 1 and February 1; however, no
penalties or interest are assessed until December 10 and April 10, respectively. These taxes are determined
annually based on property values, subject to limits based on Proposition 13, as of January 1 of the levy year,
which is prior to the end of the previous fiscal year. The County of Los Angeles bills and collects these taxes
for the City and are remitted on a monthly basis. Remittance of property taxes to the City is accounted for in
the City's General Fund and Public Library Special Revenue Fund. Property taxes on certain registered
motor vehicles are assessed and collected throughout the year.
H. Allowances for Uncollectible Accounts
Allowances for uncollectible accounts are maintained on customer and other trade receivables that historically
experience uncollectible amounts. Allowances are based on collection experience and management's
evaluation of the current status of existing receivables.
I. Prepaid Costs
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government -wide and fund financial statements. These are accounted for using the
consumption method, and accordingly, the expenditure is recorded in the period in which the goods or
services are received.
34
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Capital Assets
Government -Wide Financial Statements, Proprietary Funds, and Fiduciary Funds
Capital assets, which include land, site improvements, buildings and improvements, and equipment and
infrastructure assets, are reported in the applicable governmental or business -type activities columns in the
government -wide financial statements and in the proprietary funds and fiduciary funds. General
infrastructure assets consist of roads, curbs and gutters, sidewalks, medians, street signs, bus shelters, bridges,
trails, traffic signals, and storm drains/catch basins. Capital assets are defined by the City as assets with an
initial cost of more than $5,000 ($25,000 for site improvements and building improvements and $100,000 for
infrastructure) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value
at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset
or materially extend asset lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
SiteImprovements................................................................................................5-25 years
Buildings and Improvements................................................................................5-50 years
Equipment............................................................................................................5-25 years
Infrastructure......................................................................................................20-60 years
Governmental Fund Financial Statements
The governmental fund financial statements do not present capital assets. Instead, capital assets purchases are
reported as capital outlay expenditures. As such, capital assets are shown as a reconciling item in the
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.
K. Long -Term Debt
Government -Wide Financial Statements, Proprietary Funds, and Fiduciary Funds
Long-term debt and other financed obligations, such as developer district credits, are reported as liabilities in
the government -wide, proprietary fund, and fiduciary fund financial statements.
Bond premiums, discounts, and deferred gains and losses on refundings are deferred and amortized over the
life of the bonds using the effective interest method. Bonds payable are reported net of the applicable
premium or discount. Deferred gains and losses on refundings are reported as a deferred inflow or deferred
outflow of resources.
35
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Long -Term Debt (Continued)
Governmental Fund Financial Statements
The governmental fund financial statements do not present long-term debt and other financed obligations.
Governmental funds recognize bond premiums and discounts during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other
financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs are
reported as debt service expenditures. Principal payments and reductions in the obligation are reported as
debt service expenditures. As such, long-term debt and other financed obligations are shown as reconciling
items in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.
L. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation (compensated absences).
For proprietary fund types and governmental activities, this accumulation is recorded as an expense and
liability of the appropriate fund in the fiscal year earned. For the governmental funds, the amount of
accumulated unpaid vacation, which is payable from available resources, is recorded as a liability of the fund
when it has matured (i.e., when due and payable).
M. Claims and .Iudgments
When it is probable that a claim liability has been incurred at year-end and the amount of the loss can be
reasonably estimated, the City records the estimated loss, net of any insurance coverage, under its self-
insurance program. Claims payable, which includes an estimate for incurred but not reported (IBNR) claims,
is recorded in the Self -Insurance Internal Service Fund.
N. Pensions and Other Post -Employment Benefits
The net pension liability, deferred outflows and inflows of resources related to pensions, pension expense,
information about the fiduciary net position of the California Public Employees' Retirement System
(CalPERS), and additions to/deductions from CalPERS' fiduciary net position have been determined on the
same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefit terns.
Investments are reported at fair value.
A deferred outflow of resources is a consumption of net position or fund balance by a government that is
applicable to a future reporting period. A deferred inflow of resources represents an acquisition of net
position or fund balance by the government that is applicable to a future period. Deferred outflows and
inflows of resources related to pensions represent amounts that will be recognized as adjustments to pension
expense in future years. As noted in Note 13, deferred outflows and inflows of resources will be recognized
as pension expense in future years. Contributions subsequent to the measurement period will be recognized
during the fiscal year ending June 30, 2017.
The City also provides Other Post -Employment Benefits (OPEB) to eligible employees. The OPEB are
measured based on the funding and when contributions exceed the annual required contribution an OPEB
asset is reported on the Statement of Net Position (see Note 14).
36
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Net Position and Fund Balances
Government -Wide Financial Statements, Proprietary Funds, and Fiduciary Funds
Net position represents the difference between assets and deferred outflows of resources less liabilities and
deferred inflows of resources, and is classified into three categories:
Net Investment in Capital Assets — This amount consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction, or improvement of those assets, and excludes unspent debt proceeds. Deferred outflows of
resources and deferred inflows of resources that are attributable to the acquisition, construction, or
improvement of those assets or related debt also should be included in this component of net position.
Restricted — This amount represents the net position that is not accessible for general use because its use
is subject to restrictions enforceable by third parties and enabling legislation, reduced by liabilities and
deferred inflows of resources related to those assets.
Unrestricted — This amount represents the residual of amounts not classified in the other two categories
and represents the net equity available for the City.
Governmental Fund Financial Statements
In the governmental fund financial statements, fund balances are classified in the following categories:
Nonspendable — Items that cannot be spent because they are not in spendable form, such as prepaid items
and inventories; advances, which are long-term interfand borrowings; and items that are legally or
contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally
enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through
debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions
imposed by law through constitutional provisions or enabling legislation.
Committed — Committed fund balances encompass the portion of net fund resources, the use of which is
constrained by limitations that the government imposes upon itself at its highest level of decision-making,
City Council through Council Resolution, and that remain binding unless removed in the same manner.
The City Council is considered the highest authority for the City.
Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the
government's intended use of resources. Assignment of resources can be done by the highest level of
decision-making or by a committee or official designated for that purpose. The Deputy City Manager
authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted to him
through a resolution adopted by the City Council.
Unassigned — This includes the excess residual amounts in the General Fund and the residual deficit of all
other governmental funds, which have not been restricted, committed, or assigned to specific purposes.
37
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Net Position and Fund Balances (Continued)
The City Council has approved an operating reserve to be used for one-time unanticipated expenditure
requirements and local disaster. At June 30, 2016, the balance totaled $15,800,000, which is included in the
unassigned fund balance in the General Fund.
A Spending Policy
Government -Wide Financial Statements and Proorietary Fund Financial Statements
When an expense is incurred for purposes for which both restricted and unrestricted resources are available,
the City's policy is to apply restricted resources first.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned
fund balances are available, the City's policy is to apply in the following order, except for instances wherein
an ordinance specifies the fund balance:
Restricted
Committed
Assigned
Unassigned
Q. Estimates
The preparation of the basic financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of certain balances and the disclosure of
contingent assets and liabilities at the date of the basic financial statements and the related reported amounts
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Management believes that the estimates are reasonable.
R. Deferred Inflows of Resources, Unavailable Revenue and Unearned Revenue
Government -Wide Financial Statements
Unearned revenue represents money received during the current or previous years that has not been earned
because certain performance criteria have not been met.
Fund Financial Statements
As described above, a deferred inflow of resources represents an acquisition of fund balance by the
government that is applicable to a future period. In addition to unearned revenue, governmental funds report
deferred inflows of resources related to resources that have earned but have not been received within the
availability period. This does not provide an available financial resource in the current period; therefore,
recognition is deferred until these criteria have been met.
im
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. Pronouncements Adopted in the Current Year
GASB Statement No. 72 — In February 2015, GASB issued statement No. 72, Fair Value Measurement and
Application. The primary objective of this statement is to define fair value and describe how fair value should
be measured, define what assets and liabilities should be measured at fair value, and determine what
information about fair value should be disclosed in the notes to the financial statements. The pronouncement
was implemented effective July 1, 2015.
GASB Statement No. 76 — In June 2015, GASB issued Statement No. 76, The Hierarchy of Generally
Accepted Accounting Principles for State and Local Governments. The objective of this statement is to
reduce the GAAP hierarchy to two categories of authoritative GAAP from four categories under GASB
Statement No. 55. The pronouncement was implemented effective July 1, 2015.
GASB Statement No. 82 — In March 2016, GASB issued Statement No. 82, Pension Issues — An Amendment
of GASB Statements No. 67, No. 68, and No. 73. The objective of the Statement is to address certain issues
that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68,
Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for
Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to
Certain Provisions of GASB Statements 67 and 68. Specifically, the Statement addresses issues regarding (1)
the presentation of payroll -related measures in required supplementary information, (2) the selection of
assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for
financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee
(plan member) contribution requirements. The Statement is effective for the reporting periods beginning after
June 15, 2016, or the 2016-2017 fiscal year. The pronouncement was implemented effective July 1, 2015.
T. Pronouncements Issued But Not Yet Adopted
The GASB has issued
pronouncements that have an effective
date subsequent to June 30, 2016, which may
impact
future financial
presentations. Except as noted below,
management has
not determined what, if any,
impact
implementation
of the following Statements may have on future financial
statements of the City:
GASB Statement No. 73 — In June 2015, GASB issued Statement No. 73, Accounting and Financial
Reporting for Pensions and Related Assets that are Not within the Scope of GASB Statement No. 68, and
Amendments to Certain Provisions of GASB Statements No. 67 and No. 68. The objective of this statement
establishes requirements for those pensions and pension plans that are not administered through a trust
meeting specified criteria. The requirements of the Statement that address accounting and financial reporting
by employers and governmental nonemployer contributing entities for pensions that are not within the scope
of Statement 68 are effective for financial statements for fiscal years beginning after June 15, 2016, or FY
2016-17. The City has not determined the effect of the statement.
GASB Statement No. 74 — In June 2015, GASB issued Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans. The objective of the Statement is to address the
financial reports of defined benefit OPEB plans that are administered through trusts that meet specified
criteria. The Statement requires more extensive note disclosures and RSI related to the measurement of the
OPEB liabilities for which assets have been accumulated. The Statement is effective for periods beginning
after June 15, 2016, or the 2016-2017 fiscal year.
39
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
T. Pronouncements Issued But Not Yet Adopted (Continued)
GASB Statement No. 75 — In June 2015, GASB issued Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other than Pensions. The objective of the Statement is to replace the
requirements of GASB Statement No. 45. In addition, the Statement requires governments to report a liability
on the face of the financial statements for the OPEB provided and requires governments to present more
extensive note disclosures and required supplementary information about their OPEB liabilities. The
Statement is effective for the periods beginning June 15, 2017, or the 2017-2018 fiscal year. The City has not
determined the effect of the statement.
GASB Statement No. 77 — In August 2015, GASB issued Statement No. 77, Tax Abatement Disclosures.
The Statement requires state and local governments to disclose information about tax abatement agreements.
The Statement is effective for the periods beginning after December 15, 2015, or the 2016-2017 fiscal year.
The City has not determined the effect of the statement.
GASB Statement No. 78 — In December 2015, GASB issued Statement No. 78, Pensions Provided through
Certain Multiple -Employer Defined Benefit Pension Plans. The Statement amends the scope and
applicability of GASB Statement No. 68 to exclude certain types of cost-sharing multiple employer plans.
The Statement is effective for the periods beginning after December 15, 2015, or the 2016-2017 fiscal year.
The City has not determined the effect of the statement.
GASB Statement No. 79 — In December 2015, GASB issued Statement No. 79, Certain External Investment
Pools and Pool Participants. The Statement addresses accounting and financial reporting for certain external
investment pools and pool participants. The Statement establishes criteria for an external investment pool to
qualify for making the election to measure all of its investments at amortized cost for financial reporting
purposes. The Statement establishes additional note disclosure requirements for qualifying external
investment pools that measure all of their investments at amortized cost for financial reporting purposes and
for governments that participate in those pools. Both the qualifying external investment pools and their
participants are required to disclose information about any limitations or restrictions on participant
withdrawals. Certain provisions of the Statement are effective for the periods beginning after December 15,
2015, or the 2016-2017 fiscal year. The City has not determined the effect of those provisions.
GASB Statement No. 80 — In January 2016, GASB issued Statement No. 80, Blending Requirements for
Certain Component Units — An Amendment of GASB Statement No. 14. The objective of the Statement is to
improve financial reporting by clarifying the financial statement presentation requirements for certain
component units. This Statement amends the blending requirements established in paragraph 53 of Statement
No. 14, The Financial Reporting Entity, as amended. The additional criterion requires blending of a
component unit incorporated as a not-for-profit corporation in which the primary government is the sole
corporate member. The Statement is effective for the reporting periods beginning after June 15, 2016, or the
2016-2017 fiscal year. The City has not determined the effect of the statement.
all
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
T. Pronouncements Issued But Not Yet Adopted (Continued)
GASB Statement No, 81 — In March 2016, GASB issued Statement No. 81, Irrevocable Split—Interest
Agreements. The objective of the Statement is to improve financial reporting for irrevocable split -interest
agreements by providing recognition and measurement guidance for situations in which a government is a
beneficiary of the agreement. The Statement requires that a government that receives resources pursuant to an
irrevocable split -interest agreement recognize assets, liabilities, and deferred inflows of resources at the
inception of the agreement. Furthermore, the Statement requires that a government recognize assets
representing its beneficial interests in irrevocable split -interest agreements that are administered by a third
party, if the government controls the present service capacity of the beneficial interests. The Statement
requires that a government recognize revenue when the resources become applicable to the reporting period.
The Statement is effective for the reporting periods beginning after December 15, 2016, or the 2017-2018
fiscal year. The City has not determined the effect of the statement.
NOTE 2 — CASH AND INVESTMENTS
A. Cash andlnvestments
Cash and investments at June 30, 2016, are classified in the accompanying financial statements as follows:
Cash and investments
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Totals
Governmental
Business -Type
366
Activities
Activities
Fiduciary Funds
Total
$ 238,204,314
$ 4,270,156
$ 2,650,413 $
245,124,883
206,386
10,224 216,610
41
366
- 2,925,655
2,9261021
$
238411,066
$
4,270,156
S 55,586,292
$
248,267,514
41
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 2 — CASH AND INVESTMENTS
A. Cash and Investments (Continued)
Cash and investments consisted of the following at June 30, 2016:
Cash on hand and deposits:
Cash on hand
$
45588
Deposits with financial institutions
3,0745414
Certificates of deposit
5499998
Total Cash on Hand and Deposits
3,6299000
Investments:
U.S. Treasury Securities
3457675531
U.S. Government -Sponsored Enterprise Securities
81,4939988
Supranational
1353439280
Commercial Paper
1059725700
Medium -Term Notes
40,8915362
Money Market Funds
2379027
Asset Backed
1152085413
State of California Local Agency Investment Fund (LAIF)
47,0589001
L.A. County Pooled Investment Fund (LACPIF)
195239581
Total Investments
24154959883
Restricted investments:
Money Market Funds
2169610
Restricted investments with fiscal agent:
Money Market Funds
219269021
Total cash and investments
$
248,267,514
The carrying amounts of the City's deposits were $3,629,000 at June
30, 2016. Bank
balances before
reconciling items were $6,894,232 at that date, the total amount of which
was collateralized
or insured with
securities held by the pledging financial institutions in the City's name.
42
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The following table identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). 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 trustees 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.
Authorized
Local Agency Bonds
U.S. Treasury Obligations
State of California Obligations
California Local Agency Obligations
U.S. Governmental -Sponsored Enterprise Securities
Supranationals/Unsubordinated Obligations
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Medium -Term Notes
Money Market Funds
Mortgage Pass -Through Securities
Asset Backed
Los Angeles County Pooled Investment Fund (LACPIF)
State of California Local Agency Investment Fund (LAIF)
Maximum
Percentage or Maximum
Maximum Amount of Investment in
* Excluding amounts held by bond trustees that are not subject to California Government Code Restrictions.
** Banker's acceptances may have no more than 30 percent in anyone commercial bank, commercial paper may not
represent more than 10 percent of the City's surplus funds for any single issuer, and money market mutual funds may
have no more than 10 percent invested in any one mutual fund.
C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
Maturity
than the general provisions of the California Government
Code or the
Portfolio*
policy. The table
One
Issuer**
5 years
No Limit
No Limit
5 years
No Limit
No Limit
5 years
No Limit
No Limit
5 years
No Limit
No Limit
5 years
No Limit
No Limit
5 years
30%
10%
180 days
40%
30%
270 days
25%
10%
5 years
30%
No Limit
1 year
No Limit
No Limit
5 years
30%
No Limit
5 years
15%
10%
5 years
20%
No Limit
5 years
20%
No Limit
Not Applicable
No Limit
No Limit
Not Applicable
$5090009000
No Limit
* Excluding amounts held by bond trustees that are not subject to California Government Code Restrictions.
** Banker's acceptances may have no more than 30 percent in anyone commercial bank, commercial paper may not
represent more than 10 percent of the City's surplus funds for any single issuer, and money market mutual funds may
have no more than 10 percent invested in any one mutual fund.
C. Investments Authorized by Debt Agreements
Investments 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.
Maximum
Percentage of
Maximum
Maximum
Amount of
Investment in
Authorized Investment Type
Maturity
Portfolio
One Issuer
U.S. Treasury Obligations
N/A
50%
None
U.S. Government -Sponsored Enterprise Securities
5 years
None
None
Money Market Funds
5 years
None
None
State of California Local Agency Investment Fund (LAIF)
5 years
30%
None
43
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
D, Disclosures Relating to Interest Rate Risk
As a means of limiting its exposure to fair -value losses arising from rising interest rates, the City's investment
policy limits investments to a maximum maturity of five years from the date of purchase.
Interest rate risk is the risk that changes in market interest rates which 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.
At June 30, 2016, the City had the following investment maturities:
Investment Maturities (hr Years)
Investment Type Fair Value Less Than 1 1 to 2 2 to 3 3 to 4 4 to 5
Investments:
U.S. Treasury Securities $ 34,767,531 $ - $ 8,047,563 $ 5,082,325 $ 9,133,604 $ 12,504,039
U.S. Government -Sponsored
Enterprise Securities 81,493,988 221445,173 14,825,969 16,728,290 15,182,098 12,312,458
Supranational 13,343,280 10,018,650 3,324,630 - -
Commercial Paper 10,972,700 10,972,700 - - - -
Medium -Tenn Notes 40,891,362 7,323,903 10,859,779 11,233,544 5,551,385 5,922,751
Money Market Funds 237,027 237,027 - - -
Asset Backed 11,208,413 - 3,752,179 5,551,393 1,904,841 -
Local Agency Investment Fund (LAIF) 4770587001 477058,001 - - -
Los Angeles County Pooled
Investments Fund (LACPIF) 1,523,581 1,523,581 - - -
Total Investments 241,495,883 99,579,035 37,485,490 41,920,182 31,771,928 30,739,248
Restricted investments:
Money Market Funds 216,610 216,610 -
Restricted investments with fiscal agent:
Money Market Funds 2,926,021 2,926,021 - - - -
Total Investments Subject
to Interest Rate Risk $ 244,638,514 $ 102,721,666 $ 37,485,490 $ 41,920,182 $ 31,771,928 S 30,739,248
HE!
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
E. 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 actual rating, as reported by Standard & Poor's, as of year-end for each
investment type:
Investment Type
Investments:
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Supranational
Commercial Paper
Medium -Term Notes*
Money Market Fonds
Asset Hacked
Local Agency Investment Food (LAIF)
Los Angeles County Pooled
Investments Fund (LACPIF)
Total Investments
Restricted investments:
Money Market Foods
Restricted investments with fiscal agent:
Money Market Foods
Total Investments Subject
to Interest Rate Risk
Minimum
Rating
Fair Value
AAA
Investment Maturities (In Years)
AA+to AA- A+ to A- A-1 to A -I+
Unrated
None $
34,767,531
$ -
$ 34,767,531
$ -
$ -
$ -
None
81,493,988
-
72,404,361
-
9,089,627
-
AA
13,343,280
13,343,280
-
-
-
-
A-1
10,972,700
-
-
-
10,972,700
-
A-1
40,891,362
1,974,661
17,075,215
21,686,486
-
155,000
None
237,027
-
-
-
-
237,027
AA
11,208,413
7,076,t96
-
-
-
4,t32,2t7
None
47,058,001
-
-
-
-
47,058,001
None
1,523,581
1,523,581
241,495,883
23,917,718
124,247,107
21,686,486
20,062,327
51,582,245
None 216,6t0 216,610
None
S 244,638.514 $ 23.917,718 S 124,247307 S 21,686,486 11 20,062,327 $ 54,724,876
* Included in the medium-term notes is an investment in Lehman Brothers, which is not rated as of June 30, 2016.
Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008, and the company's assets are still
in the process of being liquidated. The value of the investment reported is the amount the City estimates it will receive
when the investment is redeemed. As of June 30, 2016, this investment is recorded at $155,000.
F. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5
percent or more of the City's total investments are as follows:
Issuer
Federal National Mortgage
Association
Federal Home Loan Bank
Federal Home Loan Mortgage
Corporation
Investment Type
U.S. Government -Sponsored
Enterprise Securities
U.S. Government -Sponsored
Enterprise Securities
U.S. Government -Sponsored
Enterprise Securities
45
Amount Investments
$ 26,7569554 11.08%
$ 2994029510 12.18%
$ 1797799700 7.36%
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
G. 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 collateral securities that are in the possession of an
outside party. The custodial credit risk for investments is the risk associated with investments that are
uninsured, are not in the name of the City, or are held by counterparty or counterparty's trust department or
agent but not in the City's name. In the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, the counterparty is then unable to deliver securities that are in the possession of another parry. As
of June 30, 2016, none of the City's deposits or investments were exposed to custodial credit risk.
H. Fair Value Classifications
Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable
inputs; Level 3 inputs are significant unobservable inputs. Investments categorized as Level 2 are valued
using market approach using quoted market prices and matrix pricing.
Investments' fair value measurements are as follows as of June 30, 2016:
Investment Type Fair Value Level 1 Level 2 Level 3
Investments:
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Supranational
Commercial Paper
Medium -Term Notes
Asset Backed
Total Leveled Investments
Uncategorized Investments:
Local Agency Investment Fund (LAIF)
Los Angeles County Pooled
Investments Fund (LACPIF)
Money Market Funds
Restricted investments:
Money Market Funds
Restricted investments with fiscal agent:
Money Market Funds
Total Investment Portfolio
3497679531 $ - $ 34,767,531 $
81,493,988 - 8194939988
1393439280 - 139343,280
1099729700 - 109972,700
409891,362 40,891,362
1192089413 - 11,2089413 -
1925677,274 $ $ 192,677,274 S
47,058,001
1,523,581
237,027
216,610
2,926,021
$ 244,638,514
Deposits and withdrawals related to the
investments in
LAIF,
LACPIF, and money market funds are are made
on the basis of $1 and not fair value.
Accordingly,
under
the fair value hierarchy these investments are
uncategorized.
EEG
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
I. Investment in State Investment Pool
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the
oversight of the Treasurer of the State of California. Each City may invest up to $50,000,000 without
limitation in special bond proceeds accounts. Investments in LAIF are highly liquid, as deposits can be
converted to cash within 24 hours without loss of interest. The City's investments with LAIF at
June 30, 2016 included a portion of the pool funds invested in structured notes and asset-backed securities:
Structured Notes — Debt securities (other than asset-backed securities) whose cash flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have
embedded forwards or options.
Asset -Backed Securities — Generally mortgage-backed securities that entitle their purchasers to receive a
share of the cash flows from a pool of assets such as principal and interest repayments from a pool of
mortgages (for example, collateralized mortgage obligations) or credit card receivables.
As of June 30, 2016, the
City had $47,058,001 invested in LAIF,
which had invested 2.81 percent
of the pool
investment funds in structured notes and asset-backed securities.
The LAIF fair value factor of 1.000621222
accordance with State
was used to calculate the
fair value of the investments in LAIF from their amortized cost basis.
LAIF is overseen by
the Local
Agency
Investment Advisory
Board,
which consists of five members, in
accordance with State
statute.
J. Investment in County Investment Pool
The Los Angeles County Pooled Investment Fund (LACPIF) is a pooled investment fund program governed
by the Los Angeles County Board of Supervisors and administered by the Los Angeles County Treasurer and
Tax Collector. Investments in the LACPIF are highly liquid, as deposits and withdrawals can be made at any
time without penalty. The LACPIF does not impose any maximum investment limit. 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 prorated share of the fair value provided by the LACPIF for the entire LACPIF portfolio (in relation to
the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records
maintained by the LACPIF, which are recorded on an amortized cost basis.
As of June 30, 2016, the City had $1,523,581 invested in the LACPIF.
47
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 3 — LAND HELD FOR RESALE
As of June 30, 2016, the
City had $910,455 of land
held for resale, which
is reported at fair value. During the
year, the City transferred
land of $466,078 from the
City to the Successor
Agency. Further, the allowance was
reduced by
$187,564 due
to the City's reassessment of
value during the year.
Library District #1
Non -Major
Governmental
Funds
Land held for resale, cost $ 298859510
Less: cumulative allowance for the decline in value (1,975,055)
Land held for resale, net $ 910,455
NOTE 4 —ACCOUNTS RECEIVABLE
Accounts receivable as of June 30, 2016, including allowances for uncollectible accounts, is as follows:
NOTE 5 — LOANS RECEIVABLE
The City has provided deferred -payment rehabilitation loans to qualified homeowners in connection with CDBG
and HOME rehabilitation programs. In the governmental funds, the loans receivable balance totaling $2,457,631
at June 30, 2016, has been offset by deferred inflows of resources for unavailable revenues in the non -major
governmental funds, since these loans are not available to finance current expenditures.
NOTE 6 — NOTES TO RDA SUCCESSOR AGENCY
Prior to the dissolution of the former redevelopment agency, the General Fund and Developer Fees Special
Revenue Fund advanced the former redevelopment agency funding for various redevelopment activities. These
advances were made in the form of promissory notes and were transferred to the RDA Successor Agency upon
dissolution. In the prior fiscal year, the California Department of Finance (DOF) approved final loan amounts
from the General Fund and Developer Fees Special Revenue Fund to the former redevelopment agency for
$7,225,964 and $5,407,868, respectively, using a LAIF rate of 0.26 percent, which was in effect when the
Oversight Board reinstated the loans on February 25, 2015. On September 22, 2015, the Committee on Budget
and Fiscal Review of the California State Senate approved SB 107. A mandate of this legislation included a
recalculation of the notes to the RDA Successor Agency using a 3 percent simple interest from the origination of
the note, instead of the LAIF rate. As such, the City increased the amounts reported as of June 30, 2016 in the
General Fund and Developer Fees Special Revenue Fund to $9,254,794 and $6,432,264, respectively. The unpaid
accrued interest of these notes is $2,341,208 and $1,112,378, respectively.
M
Landscape
Non -Major
General
Bridge and
Public Maintenance
Governmental
Internal
Fund
Thoroughfare
Library District #1
Funds
Service Funds
Gross receivables $ 1,050,442
$ 11,532
$ 12 $ 120,277
$ 97,172
$ 5,510
Less: allowance for uncollectibles (569,456)
-
- (43,618)
(35,576)
-
Net Total Receivables $ 480,986
S 11,532
$ 12 $ 76,659
S 6L596
$ 5,510
NOTE 5 — LOANS RECEIVABLE
The City has provided deferred -payment rehabilitation loans to qualified homeowners in connection with CDBG
and HOME rehabilitation programs. In the governmental funds, the loans receivable balance totaling $2,457,631
at June 30, 2016, has been offset by deferred inflows of resources for unavailable revenues in the non -major
governmental funds, since these loans are not available to finance current expenditures.
NOTE 6 — NOTES TO RDA SUCCESSOR AGENCY
Prior to the dissolution of the former redevelopment agency, the General Fund and Developer Fees Special
Revenue Fund advanced the former redevelopment agency funding for various redevelopment activities. These
advances were made in the form of promissory notes and were transferred to the RDA Successor Agency upon
dissolution. In the prior fiscal year, the California Department of Finance (DOF) approved final loan amounts
from the General Fund and Developer Fees Special Revenue Fund to the former redevelopment agency for
$7,225,964 and $5,407,868, respectively, using a LAIF rate of 0.26 percent, which was in effect when the
Oversight Board reinstated the loans on February 25, 2015. On September 22, 2015, the Committee on Budget
and Fiscal Review of the California State Senate approved SB 107. A mandate of this legislation included a
recalculation of the notes to the RDA Successor Agency using a 3 percent simple interest from the origination of
the note, instead of the LAIF rate. As such, the City increased the amounts reported as of June 30, 2016 in the
General Fund and Developer Fees Special Revenue Fund to $9,254,794 and $6,432,264, respectively. The unpaid
accrued interest of these notes is $2,341,208 and $1,112,378, respectively.
M
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 7 — CAPITAL ASSETS
A. Governmental Activities
The following
is a summary
of changes in
the capital
assets for governmental
activities during the fiscal year
ended June 30,
2016:
(1796009787)
599229009
15955455131
1357835189
Governmental activities:
Non -depreciable assets:
Land
Construction in progress
Total Non -Depreciable Assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Infrastructure
Total Depreciable Assets
Less accumulated depreciation:
Site improvements
Building and improvements
Equipment
Infrastructure
Total Accumulated Depreciation
Total Depreciable Assets, Net
Total Capital Assets, Net
Governmental Activities
Balance Balance
June 30, 2015 Additions Deletions Transfers June 30, 2016
$ 141,193,369 $
75043,137
$ (1,0959400)
$ - $
14791419106
1893519762
697409052
(155699018)
(1796009787)
599229009
15955455131
1357835189
(256645418)
(1796009787)
15390639115
4397059649
193889827
-
-
45,094,476
7191769563
1939841
-
5719792
71,942,196
1393309284
192469149
(567,223)
-
145009,210
90492719781
79841,187
(296709770)
1790289995
926,4715193
1503294849277
109670,004
(39237,993)
1796009787
19057,517,075
1395329366
195209091
-
- 15,052,457
1796419780
195699639
-
- 19,211,419
996159809
7839549
(567,223)
- 9,832,135
30393779358
1893429933
(80,123)
- 321,640,168
3449167,313
2292169212
(647,346)
- 365,736,179
688,316,964
(11,546,208)
(2,590,647)
17,600,787 691,780,896
$ 847,861095
S 21236,981 $
(5,255,065) S
- $ 844,844,011
Depreciation expense was
charged
to functions/programs
of governmental activities for the fiscal year ended
June 30, 2016, as follows:
293165687
Public works
3385087
Governmental Activities
General government
$ 9935023
Public safety
29485
Parks, recreation and community service
293165687
Public works
3385087
Community development
2,638
Internal service funds depreciation
2205359
Allocated Depreciation
398739279
Unallocated infrastructure depreciation
18,342,933
Total Depreciation Expense
S 22216.212
1Z
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 7 — CAPITAL ASSETS (CONTINUED)
B. Business -Type Activities
The following
is a summary
of changes in
the capital
assets for business -type activities during the fiscal year
ended June 30,
2016:
Balance
June 30 2015
Additions
Business -type activities:
Non -depreciable assets:
Land
Construction in progress
Total Non -Depreciable Assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Total Depreciable Assets
Less accumulated depreciation:
Site improvements
Building and improvements
Equipment
Total Accumulated Depreciation
Total Depreciable Assets, Net
Total Capital Assets, Net
$ 15,087,880 $ - $ - 15,087,880
1,736 1,736
15,087,880 1,736 - 15,089,616
12,941,276 -
Business -Type
Activities
- 41,483,799
Balance
(10,036) 49,540,292
100,302,208 3,673,195
Balance
June 30 2015
Additions
Deletions
June 30, 2016
$ 15,087,880 $ - $ - 15,087,880
1,736 1,736
15,087,880 1,736 - 15,089,616
12,941,276 -
- 12,941,276
41,483,799 -
- 41,483,799
45,877,133 3,673,195
(10,036) 49,540,292
100,302,208 3,673,195
(10,036) 103,965,367
2,127,149
568,221
- 2,695,370
10,159,039
883,347
- 11,042,386
24,608,029
4,031,974
(10,036) 28,629,967
36,894,217
5,483,542
(10,036) 42,367,723
63,407,991
(1,810,347)
- 61,597,644
$ 78,495,871
$ (1,808,611) $
- $ 76,687,260
3,313,500
1,953,217
(2,017,432)
Depreciation expense for business -type activities for the fiscal year ended June 30, 2016 was charged as
follows:
Business -type Activities:
Transit enterprise fund
NOTE 8 — LONG-TERM DEBT
A. Governmental Activities
$ (5,483,542)
The following is a summary of long-term debt transactions of the City for the year ended June 30, 2016:
Lease Revenue Bonds:
Series 2007
Series 2016A (Golden Valley Road)
Series 2016B (OSPD)
Plus deferred amount for issuance premium
Total Lease Revenue Bonds
Certificates of Participation:
Refunding, Series 2005
Series 2007
Less deferred amount for issuance discount
Total Certificates of Participation
Private Placement Lease:
Refunding, Series 2015
Loans
Capital Leases
Compensated absences
Claims and judgments
Total
NOTE 8 — LONG-TERM DEBT
Classification
Balance
10,320,000
375,000
Balance
Due Within
Due More
June 30 2015
Addifions
Deletions
June 30, 2016
One Year
Than One Year
11,595,000 $ - $ (11,595,000)
- 10,320,000 -
10,320,000
375,000
9,945,000
- 14,020,000 -
14,020,000
295,000
13,725,000
78,964 1,672,352 (78,964)
1,672 352
77,864
1,594,488
11,673,964 26,012,352 (11,673,964)
26,012,352
747,864
25,264,488
8,130,000
- (8,130,000) - - -
15,220,000
- (15,220,000) - - -
(45,874)
45,874 - - -
23,304,126
(23,304,126)
6V
6,985,000
(656,589)
6,328,411
1,343,868
4,984,543
300,000
-
(100,000)
200,000
100,000
100,000
217,615
-
(78,738)
138,877
78,433
60,444
3,313,500
1,953,217
(2,017,432)
3,249,285
2,011,570
1,237,715
1,993,915
1,410,261
(954,361)
2,449,815
1,515,623
934,192
$ 40,803,120
$ 36,360,830
S (38,785,210) $
38,378,740 $
5,797,358 $
32,581,382
6V
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
A. Governmental Activities
Lease Revenue Bonds — Series 2007 and Certificates of Participation — Refunding Series 2005 and
Series 2007
As described under Lease Revenue Bonds — Series 2016A and 2016B below, in June 2016 the Authority
refunded the Lease Revenue Bonds Series 2007 of $11,595,000, Certificates of Participation, Refunding
Series 2005 of $8,130,000, and Certificate of Participation Series 2007 of $15,220,000. The difference
between the reacquisition price and carrying value of the refunded debt is reported as a deferred outflow of
resources as of June 30, 2016, totaling $1,891,330. This amount will be amortized over the life of the
refunding debt, as a component of interest expense.
Lease Revenue Bonds — Series 2016A and 2016B
In June 2016, the Authority issued Lease Revenue Refunding Bonds, Series 2016A (Golden Valley Road) and
Series 2016B (OSPD), in the amount of $10,320,000 and $14,020,000, respectively. Interest on the
Refunding Lease Revenue Bonds, Series 2016A, is paid as part of a variable rate between 2 percent and 4
percent payable on June 1 and December 1 of each year commencing on December 1, 2016. Interest on the
Refunding Lease Revenue Bonds, Series 2016B, is paid as part of a variable rate between 2 percent and 4
percent payable on April 1 and October 1 of each year commencing on October 1, 2016. Principal payments
are due annually in various amounts commencing December 1, 2016, through December 1, 2035, for Series
2016A, and October 1, 2016, through October 1, 2037, for Series 2016B. The unpaid balance as of June 30,
2016, was $10,320,000 for Series 2016A and $14,020,000 for Series 2016B.
Proceeds from the Lease Revenue Refunding Bonds, Series 2016A, along with other funds, were used to
redeem and defease through advance refunding all the outstanding balance of the Lease Revenue Bonds,
Series 2007. The refunding provided for a cumulative savings of $2,254,566 over the life of the bonds,
resulting in an economic gain of $1,824,403 net of other funds to fund the redemption, or 15.7 percent of the
refunded principal. As of June 30, 2016, the outstanding amount of the refunded Lease Revenue Bonds,
Series 2007 was $11,260,000, and $11,701,841 was held in escrow to fund the redemption. These amounts
are considered defeased for financial reporting purposes.
51
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 8 - LONG-TERM DEBT (CONTINUED)
A. Governmental Activities (Continued)
Proceeds from the Lease Revenue Refunding Bonds, 2016B, along with other funds, were used to pay in full
the outstanding principal balance of the Certificates of Participation, Series 2007. The refunding provided for
a cumulative savings of $3,592,541 over the life of the bonds, resulting in a net present value savings of
$2,976,635 net of other funds to fund the redemption, or 19.6 percent of the refunded principal. As of
June 30, 2016, the outstanding amount of the refunded Certificates of Participation, Series 2007, was
$15,070,000, and $15,925,852 was held in escrow to fund the redemption. These amounts are considered
defeased for financial reporting purposes.
The annual debt service requirements on the remaining bonds are as follows:
Series 2016A:
Series 201613:
Year Ending June 30,
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
Year Ending June
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
2037-2038
52
Principal
$ 375,000
375,000
385,000
400,000
420,000
2,355,000
2,785,000
3,225,000
$ 10,320,000
Principal
$ 295,000
275,000
305,000
340,000
375,000
2,430,000
3,435,000
4,430,000
2,135,000
$ 149020,000
Interest
$ 321,236
326,600
311,400
295,700
279,300
1,126,600
698,225
260,975
$ 39620,036
Interest
$ 340,917
430,206
418,606
405,706
391,406
1,692,131
1,213,610
711,488
64,875
$ 59668,945
Total
$ 696,236
701,600
696,400
695,700
699,300
3,481,600
3,483,225
3,485,975
$ 139940,036
Total
$ 635,917
705,206
723,606
745,706
766,406
4,122,131
4,648,610
5,141,488
2,199,875
$ 199688,945
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 8 — LONG-TERM DEBT (CONTINUED)
A. Governmental Activities (Continued)
Private Placement Lease
In July 2015, the Authority entered into a lease assignment agreement in the amount of $6,985,000 with
Umpqua Bank. Interest on the lease is paid as part of a variable rate between 3.5 percent and 4.0 percent
payable on October 1 and April 1 of each year commencing on October 1, 2015. Principal payments are due
annually in various amounts commencing October 1, 2015, through October 1, 2020. The unpaid balance as
of June 30, 2016, was $6,328,411.
Proceeds from the private placement lease along with other funds, were used to redeem and defease through
advance refunding all the outstanding balance of the Refunding Certificates of Participation — Series 2005.
The refunding provided for a cumulative debt service savings of $306,714 over the life of the bonds, resulting
in an economic gain of $249,784 net of other funds to fund the redemption, or 3.1 percent of the refunded
principal. On October 1, 2015, the Refunding Certificates of Participation, Series 2005 were fully redeemed.
The annual debt service requirements on these certificates are as follows:
Year Ending June 30,
Principal
Interest
Total
2017
$ 15343,868
$
1225402 $
1,466,270
2018
15388,803
94,674
1,4839477
2019
19418,260
66,198
1,484,458
2020
15447,109
379110
194849219
2021
730,371
75450
7379821
$ 6,328,411
$
327,834 $
69656,245
Loans
Balance
Balance
Due Within
Due More
June 30, 2015 Additions
Deletions June
30, 2016
One Year
Than One Year
HUD Loans:
Boys & Girls Club
$ 74,000 $ -
$ (23,000) $
51,000
$ 23,000
$ 285000
Scherzinger Lane
226,000
(77,000)
149,000
77,000
72,000
Total Loans
S 300,000 S -
$ (1005000) $
200,000
$ 100,000
$ 100.000
In August 2002, the City entered into a loan agreement with the Secretary of Housing and Urban
Development in the amount of $350,000. The purpose of this loan was to assist the Boys & Girls Club in
financing the construction of a new gymnasium. Payments are due semi-annually, commencing on February
1, 2003, and continuing through August 1, 2017. Future CDBG grant funding will be used to repay the loan.
The interest rate on this loan is fixed at 0.56 percent. The amount outstanding at June 30, 2016, is $51,000.
In August 2002, the City entered into a loan agreement with the Secretary of Housing and Urban
Development in the amount of $1,150,000. The purpose of this loan was to provide financing for the
construction of improvements to Scherzinger Lane. Payments are due semi-annually, commencing on
February 1, 2003, and continuing through August 1, 2017. Future CDBG grant funding will be used to repay
the loan. The interest rate on this loan is fixed at 0.56 percent. The amount outstanding at June 30, 2016, is
$149,000.
53
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 8 — LONG-TERM DEBT (CONTINUED)
A. Governmental Activities (Continued)
Future payment requirements for the loans are combined as follows:
Year Ending June 30,
Principal
2,885
Interest
Total
2017
$ 1009000
$
805 $
108,605
2018
100,000
2,885
102,885
Total
S 200,000
$
115490 $
211490
Capital Leases
On February 28, 2012, the City Council approved a lease -purchase agreement with One Source Financial
Corporporation for two seven -bin sorters for the Canyon Country and Valencia Library branches in the
amount of $251,455. The lease agreement has 60 monthly payments of $4,825 with an interest rate of 6
percent. The final payment is due May 15, 2017. The lease was assigned by One Source Financial Corp. to
Bank of the West.
The assets acquired through the capital lease are as follows:
Equipment $ 2529068
Less: accumulated depreciation (159,643)
Total $ 921425
Future capital lease payment requirements are as follows:
Year Ending June 30, Total
2017 $ 539078
Net minimum lease payments 539078
Less: amount representing interest
Present value of net minimum lease payments
(1,544)
$ 51,534
On August 1, 2014, the City Council approved a lease -purchase agreement with Canon Financial Services,
Inc. to install a Canon Image Runner C5045 for the Canyon Country and Valencia Library branches in the
amount of $13,433. The lease agreement has 60 monthly payments of $279 with an interest rate of 9.024
percent. The final payment is due August 1, 2019. The lease was assigned by Canon Financial Services, Inc.
The assets acquired through the capital lease are as follows:
Equipment
Less: accumulated depreciation
Total
54
$ 13,433
(2,463)
$ 10,970
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 8 — LONG-TERM DEBT (CONTINUED)
A. Governmental Activities (Continued)
Future capital lease payment requirements are as follows:
Year Ending June 3
2018
2019
2020
Net minimum lease payments
Less: amount representing interest
Present value of net minimum lease payments
Total
$ 3,348
3,348
3,348
279
10,323
(1,341)
$ 8,982
On August 1, 2014, the City County approved a lease -purchase agreement with Canon Financial Services,
Inc. to install a Canon Image Runner C5045 for the Canyon Country and Valencia Library branches in the
amount of $121,956. The lease agreement has 60 monthly payments of $2,270 with an interest rate of 4.42
percent. The final payment is due August 1, 2019. The lease was assigned by Canon Financial Services, Inc.
The assets acquired through the capital lease are as follows:
Equipment $ 121,956
Less: accumulated depreciation (229359)
Total $ 999597
Future capital lease payment requirements are as follows:
Year Ending June 30, Total
2017 $ 27,235
2018 27,235
2019 27,235
2020 2,270
Net minimum lease payments 83,975
Less: amount representing interest (59614)
Present value of net minimum lease payments $ 78,361
Compensated Absences
The City's liability for accrued and unpaid compensated absences in the governmental activities totaled
$3,249,285 at June 30, 2016. The majority of compensated absences are liquidated through the General Fund.
55
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 8 — LONG-TERM DEBT (CONTINUED)
A. Governmental Activities (Continued)
Claims and Judgments
The City's liability for outstanding claims and judgments is $2,449,815 at June 30, 2016 (see Note 17).
B. Business -Type Activities
Compensated Absences
The City's
liability for accrued
and unpaid
compensated absences in the business -type activities at June 30,
2016, is as
follows:
One Year
Than One Year
Balance
Balance
Due Within
Due More
June 30, 2015 Additions
Deletions June 30, 2016
One Year
Than One Year
Compensated absences $ 75,251 S 52,745 $ (45,599) $ 82,397 $ 51,460 $ 30,937
NOTE 9 — DEPOSITS PAYABLE
The City collects deposits for a) improvements within the City, b) donations received for specified services, and
c) deposits received in advance for recreation programs or other department services. These balances represent
amounts that have been collected for which the eligibility requirements for revenue recognition have not been
met. As of June 30, 2016, deposits payable were as follows:
General Fund:
Deposits from developers $ 29629,168
Other deposits payable 315,233
Total Deposits Payable $ 2,944,401
NOTE 10 —DEVELOPER CREDITS
The City and County of Los Angeles have established the Santa Clarita Valley Bridge and Major Thoroughfare
Districts to accommodate the needs of future development anticipated by the County of Los Angeles and the City
of Santa Clarita General Plans. Included in the formation documents are provisions for district fees to be paid by
developers, which are to be used to assist the City in constructing and maintaining the infrastructure within the
areas of benefit. In lieu of paying the district fees, developers are allowed to donate infrastructure (roadways,
bridges, intersections, and interchanges) necessary for the future development of the districts. In certain cases, the
developer may donate infrastructure with a value that exceeds the district fees collected. If this occurs, the
developer can receive a credit toward future district fees or request a cash withdrawal of the excess amount,
subject to City approval if funding is determined to be available. As of June 30, 2016, the City accrued a liability
of $44,986,509 for the value of infrastructure donated in excess of the district fees that were owed. There is no
maturity schedule for the developer payables, and it has been determined that current financial resources will not
be used to repay the liability; therefore, the liability has been recorded as a long-term obligation in the
governmental activities in the Statement of Net Position.
56
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 10 — DEVELOPER CREDITS (CONTINUED)
The following is a summary of developer credits by district for the year ended June 30, 2016:
Bridge and Thoroughfare Credits:
Bouquet District
Eastside District
Via Princessa District
Valencia District
Total Bridge and Thoroughfare Credits
NOTE 11— INTERFUND TRANSACTIONS
A. Due To/Due From
Balance Balance
June 30, 2015 Additions Deletions June 30, 2016
$ 99907,721 $ 9,818,408 $ (2,409,947) $ 17,3169182
13,603,430 - (1,675,542) 1159279888
35,256 136,008 171,264
159571,175 - 15,571,175
399117,582 959549416 (4,0859489) 44,9869509
At June 30, 2016, the City had the following short-term interfund receivables and payables:
Due From
Other Funds
General
Due to Other Funds:
Non -Major Governmental Funds S 3,117,635
B. Advances
At June 30, 2016, the City had the following interfund advances:
In March 2006, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $430,000 for
acquisition of land. The advance accrues interest at a rate equal to the yield of the average monthly
investment portfolio and will be repaid with future available resources of the Bridge and Thoroughfare
Special Revenue Fund. There is no fixed repayment schedule. At June 30, 2016, the amount of the advance
outstanding is $549,004.
57
Advances To
Other Funds
Developer
General
Fees
Total
Advances From Other Funds:
Major Governmental Funds:
Bridge and Thoroughfare
$ 159149943
$ 120,185 $
29035,128
Public Library
9,139,862
-
99139,862
Total
$ 111054,805
S 12005 $
11,174,990
In March 2006, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $430,000 for
acquisition of land. The advance accrues interest at a rate equal to the yield of the average monthly
investment portfolio and will be repaid with future available resources of the Bridge and Thoroughfare
Special Revenue Fund. There is no fixed repayment schedule. At June 30, 2016, the amount of the advance
outstanding is $549,004.
57
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 11— INTERFUND TRANSACTIONS (CONTINUED)
B. Advances (Continued)
In December 2007, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund
$3,000,000 to pay outstanding developer payables at the time. The advance accrues interest at a rate equal to
the yield of the average monthly investment portfolio and will be repaid with future available resources of the
Bridge and Thoroughfare Special Revenue Fund. There is no fixed repayment schedule. At June 30, 20165
the amount of the advance outstanding is $962,524.
In July 2015, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $400,000 to
acquire the right-of-way for the project that will design and widen the Newhall Ranch Road Bridge over the
San Francisquito Creek. The advance accrues interest at a rate equal to the yield of the average monthly
investment portfolio and will be repaid with future available resources of the Bridge and Thoroughfare
Special Revenue Fund. There is no fixed repayment schedule. At June 30, 2016, the amount of the advance
outstanding is $403,415.
In July 2010, the Developer Fees Special Revenue Fund advanced the Bridge and Thoroughfare Special
Revenue Fund $111,242 for the design and construction costs of the Newhall Avenue Pedestrian, Facilities,
and Sidewalk project. The advance accrues interest at a rate equal to the yield of the average monthly
investment portfolio and will be repaid with future available resources of the Bridge and Thoroughfare
Special Revenue Fund. There is no fixed repayment schedule. At June 30, 2016, the amount of the advance
outstanding is $1209185.
The General Fund advanced the Public Library Special Revenue Fund $9,139,862, which consists of the
following individual advances:
In March 2011, the General Fund advanced the Public Library Special Revenue Fund $1,348,000 for the
acquisition of opening -day library materials and library furnishings and equipment. The advance accrues
interest at a rate equal to the rate of return on investments and shall be repaid with future available
resources of the Public Library Special Revenue Fund. At June 30, 2016, the principal amount of the
advance of $679,945 is outstanding.
In April 2011, the General Fund advanced the Public Library Special Revenue Fund $388,323 for the
acquisition of a radio frequency identification system and related software for the Santa Clarita Public
Library. The advance accrues interest at a rate equal to the rate of return on investments and shall be
repaid with future available resources of the Public Library Special Revenue Fund. At June 30, 2016, the
principal amount of the advance of $388,323 is outstanding.
In May 2011, the General Fund advanced the Public Library Special Revenue Fund $8,071,596 for the
acquisition of library facilities, real property, personal property, and collections from the County of Los
Angeles. The advance accrues interest at a rate equal to the rate of return on investments and shall be
repaid with future available resources of the Public Library Special Revenue Fund. At June 30, 2016, the
principal amount of the advance of $8,071,594 is outstanding.
M
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 11— INTERFUND TRANSACTIONS (CONTINUED)
C. Transfers
At June 30, 2016, the City had the following transfers:
Transfers in:
General Fund
Landscape Maintenance District #1
Non -Major Governmental Funds
Transit Enterprise
Internal Service Funds
Total
Transfers in:
General Fund
Landscape Maintenance District #1
Non -Major Governmental Funds
Transit Enterprise
Internal Service Funds
Total
Transfers Out
General Bridge and Developer Public
Fund Thoroughfare Fees Library
- $ 45136 $ 869596 $ 21760
10,000 - - -
5,747,228 - - -
76,219 - - -
$ 5,833,447 S 4,136 $ 86,596 S 2,760
Transfers Out
Landscape Non -Major Transit
Maintenance Governmental Enterprise Internal
District #1 Funds Fund Service Funds
$ 113,041 $ 6425793 $ 196,204 $ 446,185
122,974 4,564,956
- 6,590,158
3,690
$ 236,015 S 11,797,907 $ 199,894 S 446,185
Total
$ 1,491,715
10,000
10,438,848
6,590,158
76,219
$ 18,606,940
The General Fund made transfers to non -major governmental funds for operating and capital improvement projects for
$1,955,384 and current year debt service payments for $3,801,844, totaling $5,757,228. Transfers from the General
Fund to the Self -Insurance Internal Service Fund of $76,219 were for risk management operations. Transfers to the
General Fund from the Self -Insurance Internal Service Fund for $440,674 consist primarily of Phase II of Edwards
billboard removal settlement.
The Bridge and Thoroughfare, Developer Fees, Public Library, and Landscape Maintenance District #1 Special Revenue
Funds, non -major governmental funds, Transit Enterprise Fund, and Self -Insurance Internal Service Fund made transfers
to the General Fund for current year post -employment benefits, totaling $221,427.
The Landscape Maintenance District #1 Special Revenue Fund made transfers to the General Fund and the non -major
governmental fund for operating costs for $189,096.
The non -major governmental funds made transfers to the General Fund for operating and replacement costs for
$613,492. Transfers from non -major governmental funds to non -major governmental funds of $4,565,956 represents
debt service payments for the 2007 Certificates of Participation (OSPD). Transfers from the non -major governmental
funds to the Transit Enterprise Fund totaling $6,590,158 were to transfer Proposition A and Proposition C non-operating
revenues in the current year.
The Transit Enterprise Fund made transfers to the General Fund for $150,000 to support the senior center transit
operations. Transfers to non -major governmental funds for $3,690 were for the proportional share of Metrolink station
maintenance.
59
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 12 — FUND BALANCES AND NET POSITION
A. Fund Balance Classification
The details of fund balance of the governmental funds as of June 30, 2016, are presented below:
Major Governmental Funds
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN
General Information about the Pension Plan
A. Plan Description
The City's defined benefit pension plan, California Public Employees' Retirement System (CalPERS),
provides pensions for all permanent full-time general and some part-time employees of the City. Ca1PERS is
an agent -multiple employer defined benefit pension plan administered by the California Public Employees'
Retirement System. Ca1PERS acts as a common investment and administrative agent for its participating
member employers and are included within Public Employees' Retirement Fund A (PERF A). Benefits
provisions under the Plan are established by State statute and may be amended by City resolution. Ca1PERS
issues a publicly available financial report, which includes a full description of the pension plan regarding
benefit provisions, and assumptions and membership information that can be obtained at
httvs://Www.caliiers.ca.gov.
a1
Landscape
Non -Major
General Bridge and
Developer
Public
Maintenance
Governmental
Fund Thoroughfare
Fee
Library
District#I
Foods
Total
Nonspendable:
Prepaid items $
202,769 $ -
$ -
$ 38,061
$ 168,441
$ 17,146
$ 426,417
Advances to other funds
10,905,483 "
10,905,483
Total Nonspendable
11,108,252
38,061
168,441
17,146
11,331,900
Restricted:
Landscape maintenance
- -
-
-
32,418,435
5,456,876
37,875,311
Capital improvements
- 4,058,268
3,249,260
-
-
8,862,738
16,170,266
Transportation
- -
-
-
-
14,740,999
14,740,999
Open space pmservation
- -
-
-
-
6,390,594
6,390,594
Public safety
- -
1,437,368
-
-
336,692
1,774,060
Public library
- -
-
-
-
850,857
850,857
Air quality improvement
- -
-
-
-
717,331
717,331
stonnwater
- -
-
-
-
5,476,592
5,476,592
Public education and govenunent
- -
-
-
-
1,683,950
1,683,950
Tourism marketing
- -
-
-
-
875,915
875,915
Low- and moderate -income housing
594,823
594,823
Total Restricted
7 4,058,268
4,686,628
32,418,435
45,987,367
87,150,698
Committed:
Capital improvements
14,000
14,000
Assigned:
Capital projects
21,500,000 -
50,757
-
-
1,830,971
23,381,728
Claims and settlements
5,156,328 -
-
-
-
-
5,156,328
Public facilities replacement
52,710,756
52,710,756
Total Assigned
79,367,084
50,757
1,830,971
81,248,812
Unassigned
50,669,580
(6,973,654)
(1,544)
43,694,382
Total Fund Halanaes $
141,144,916 $ 4,058,268
$ 4,751,385
$ (6,935,593)
$ 32,586,876
$ 47,833,940
$ 223,439,792
* Accrued interest on General
Fund advances to other
funds of $149,322, do not
provide current financial resources and
are reported as deferred inflows
of resources for unavailable
revenues.
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN
General Information about the Pension Plan
A. Plan Description
The City's defined benefit pension plan, California Public Employees' Retirement System (CalPERS),
provides pensions for all permanent full-time general and some part-time employees of the City. Ca1PERS is
an agent -multiple employer defined benefit pension plan administered by the California Public Employees'
Retirement System. Ca1PERS acts as a common investment and administrative agent for its participating
member employers and are included within Public Employees' Retirement Fund A (PERF A). Benefits
provisions under the Plan are established by State statute and may be amended by City resolution. Ca1PERS
issues a publicly available financial report, which includes a full description of the pension plan regarding
benefit provisions, and assumptions and membership information that can be obtained at
httvs://Www.caliiers.ca.gov.
a1
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN (CONTINUED)
B. Benefits Provided
Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to
plan members 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 with statutorily reduced
benefits (total service across all Ca1PERS employers, and with certain other Retirement Systems with which
Ca1PERS has reciprocity agreements). All members are eligible for non -duty disability benefits after 5 years
of service. The death benefit is one of the following: Basic Death Benefit, the 1957 Survivor Benefit, or the
Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by
the Public Employees' Retirement Law.
The Plan's provisions and benefits in effect as of June 30, 2016 are summarized as follows:
* For unrepresented Tier 1 participants, the City pays 4% of the required employee contribution. For the SEN Tier 1 participants, the
City pays 3% of the required employee contributions. The City does not pay any portion of the employee contribution for Tier 2 or Tier
3 participants. These payments are classified as employee contributions in accordance with GASB 68.
** Those hired as part-time seasonal (PTS) who later convert to regular full-time will qualify for Tier 1, 2 or 3 depending on their
conversion date.
61
Miscellaneous
Tier 1
Tier 2
Tier 3
Formula
2.7%at55
2%at60
2%at62
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
55
60
62
Monthly benefits, as a % of annual salary
2.7%
2.0%
2.0%
Required employee contribution rates*
8%
7%
6.25%
Required employer contribution rates
14.185%
14.185%
14.185%
Tier 1
Tier 2
Tier 3
Applies to:
Employees hired before
Employees hired
Employees hired
April 9, 2011**
between April 9, 2011,
January 1, 2013, or later
and December 31, 2012,
**
or those hired January 1,
2013, or later, who have
been a Classic WIPERS
member with a public
agency or in a Classific
reciprocal plan within
the last 6 months). **
* For unrepresented Tier 1 participants, the City pays 4% of the required employee contribution. For the SEN Tier 1 participants, the
City pays 3% of the required employee contributions. The City does not pay any portion of the employee contribution for Tier 2 or Tier
3 participants. These payments are classified as employee contributions in accordance with GASB 68.
** Those hired as part-time seasonal (PTS) who later convert to regular full-time will qualify for Tier 1, 2 or 3 depending on their
conversion date.
61
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN (CONTINUED)
C. Employees Covered by Benefit Terms
At June 30, 2014, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits
Employees entitled to but not yet receiving benefits
Active employees
133
347
386
The information was obtained from the CalPers Annual Valuation Report as of June 30, 2014, and is the most
recent information available.
D. Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on the July 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. Refer to Section B for required
contribution rates during the year ended June 30, 2016, including amounts paid by the City related to
employees' required contribution rates. The employer contributions during the year ended June 30, 2016
were $3,958,892.
E. Actuarial Assumptions
The total pension liability in the June 30, 2014 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary increases
Investment rate of return
June 30, 2014
June 30, 2015
Entry -Age Normal Cost Method
7.65 percent
2.75 percent
3.3 to 14.2 percent by Entry, Age and Service
7.65 percent
Mortality rates were
based on the 2014 Ca1PERS
actuarial experience study,
which
assumed future mortality
improvements using
Society of Actuaries (SOA)
Scale AA. The Experience
Study
report can be obtained at
Ca1PERS' website under Forms and Publications.
62
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN (CONTINUED)
E. Actuarial Assumptions (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. In determining the long-term
expected 7.65 percent rate of return on pension plan investments, Ca1PERS took into account both short- and
long-term market return expectations, as well as the expected pension fund cash flows. Based on the
expected benefit payments of the Public Employees' Retirement Fund, Ca1PERS indicated that a 19 -year
horizon was ideal in determining the level equivalent discount rate assumption. Using historical returns of all
the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10
years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns
for both short- and long-term, the present value of benefits was calculated for each fund. The expected rate of
return was set by calculating the single equivalent expected return that arrived at the same present value of
benefits for cash flows as the one calculated using both short- and long-term returns. The expected rate of
return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest
one quarter of one percent. The target allocation and best estimates of arithmetic real rates of return for each
major asset class are the same for each Plan. These geometric rates of return are net of administrative
expenses and are summarized in the following table:
New Strategic Expected Real Rate Expected Real Rate
Asset Class
Allocation
of Return 1-10 Years (a)
of Return 11+ Years (b)
Global Equity
51.0%
5.25%
5.71%
Global Debt Securities
19.0%
0.99
2.43
Inflation Assets
6.0%
0.45
3.36
Private Equity
10.0%
6.83
6.95
Real Assets
10.0%
4.50
5.13
Infrastructure and Forestland
2.0%
4.50
5.09
Liquidity
2.0%
-0.55
-1.05
100%
(a) An expected inflation rate of 2.5% used for this period
(b) An expected inflation rate of 3.0% used for this period
63
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN (CONTINUED)
F. Changes of Assumptions
GASB 68, paragraph 68, states that the long-term expected rate of return should be determined net of pension
plan investment expense but without reduction for pension plan administrative expense. The discount rate of
7.50 percent used for the June 30, 2014 measurement date was net of administrative expenses. The discount
rate of 7.65 percent used for the June 30, 2015 measurement date is without reduction of pension plan
administrative expense.
G. Discount Rate
The discount rate used to measure the total pension liability was 7.65 percent. The projection of cash flows
used to determine the discount rate assumed that employee contributions will be made at the current
contribution rate and that the City's contributions will be made at rates equal to the difference between
actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension
plan's fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. To determine whether the municipal bond rate should be used in the
calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a
discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of
the tested plans run out of assets. Therefore, the current 7.65 percent discount rate is adequate, and the use of
the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65 percent
will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress -test results are
presented in a detailed report that can be obtained from the CalPERS website.
E
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN (CONTINUED)
H. Changes in the Net Pension Liability
Balances at June 30, 2014
Changes recognized for the measurement
period:
Service cost
Interest
Changes of benefit terms
Differences between expected and
actual experience
Changes in assumptions
Plan to Plan Resource Movement
Contributions from the employer
Contributions from the employees
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net changes
Balances at June 30, 2015
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability (a) Net Position (b) Liability (a) - (b)
$ 13893885376 $ 11195129216 $ 265876,160
49418,053 49418,053
109443,680 10,443,680
416,626 416,626
(35009,808) - (35009,808)
- 99685 (9,685)
- 397409145 (39740,145)
- 291649107 (25164,107)
- 295069239 (25506,239)
(299715092) (239719092) -
- (1319529) 1319529
99297,459 5,317,555 3,979,904
$ 147,6851835 $ 116,829,771 $ 30,856,064
The City has allocated the proportion of the net pension liability and related components based on the share of
contributions to the pension plan relative to the total contributions to the City. At June 30, 2016, the total net
pension liability was proportionately allocated as follows:
Government Transit Total Net
Activities Enterprise Fund Pension Liability
Net pension liability $ 299771,723 $ 190849341 $ 305856,064
L Sensitivity of the Net Pension Liability to Changes in the Discount Rate:
The following presents the net pension liability of the City, calculated using the discount rate of 7.65 percent,
as well as what the City's net pension liability would be if it were calculated using a discount rate that is
1 -percentage point lower (6.65 percent) or 1 -percentage point higher (8.65 percent) than the current rate:
1% Decrease Current Discount 1% Increase
(6.65%) Rate (7.65%) (8.65%)
Net pension liability $ 549743,102 $ 3098569064 $ 11,408,802
65
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 13 — AGENT MULITPLE-EMPLOYER PLAN (CONTINUED)
J. Pension Plan Fiduciary Net Position
Detailed
information about
the pension plan's
fiduciary
net position is available in the separately issued
Ca1PERS
financial report.
K. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2016, the City recognized pension expenses of $3,013,471. At June 30, 2016, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources.
Deferred Outflows Deferred Inflows
of Resources of Resources
Net difference between projected and actual earnings on pension plan investments $ - $ (6915589)
Changes in assumptions - (293409961)
Differences between expected and actual experience 3249042 -
City contributions subsequent to the measurement date 3,958,892
Total $ 41282,934 S (3,032,550)
At June 30, 2016, the total deferred outflow of resources and deferred inflow of resources related to the net
pension liability was proportionately allocated as follows:
Deferred outflows of resources
Deferred inflows of resources
Governmental
Activities
$ 451315733
(299255290)
Transit
Enterprise Fund
$ 151,201
(107,260)
Total
$ 492829934
(390329550)
Amounts reported as deferred outflows of resources and deferred inflows of resources are amortized in
pension expense for the year the gain or loss occurs, except for contributions subsequent to the measurement
period of $3,958,892, which will be recognized as a reduction of the net pension liability during the fiscal
year ending June 30, 2017. The amortization period differs depending on the source of the gain or loss.
Differences between projected and actual investment earnings are amortized on a 5 -year straight-line basis
and all other amounts are amortized over the average expected remaining service lives of all members that are
provided with benefits. As of the June 30, 2015 measurement date, the expected average remaining service
lifetime is 4.5 years. Deferred outflows and inflows of resources related to pensions will be recognized in
pension expense as follows:
Fiscal Year Endine
2017
2018
2019
2020
Total
Deferred
Outflows/(Inflows)
of Resources
$ (192129601)
(192129601)
(192129603)
929,297
(2,708,508)
3�
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 14 — POST -EMPLOYMENT HEALTH BENEFITS
A. Plan Description
The City has elected through resolution to provide healthcare benefits as a single -employer defined benefit
plan to retirees, spouses, and eligible dependents of the City. This plan provides post -employment medical
insurance benefits through the Ca1PERS Health Plan (the Plan). A separate financial report is not issued.
B. Eligibility
City employees who have a service retirement from the City at age 50 with five or more years of service are
eligible to receive post -employment medical benefits. Employees who have a disability retirement are also
eligible. The benefit for employees hired before January 1, 2008 is $1,017 per month. The maximum
benefit will be adjusted when the lowest cost employee rate, plus one, exceeds $1,017. No minimum years
of service were required for the employees hired before January 1, 2008 and retired before January 1, 2012
and represented employees hired before January 1, 2008 and retired after January 1, 2012 and before January
1, 2014. For employees hired after January 1, 2008 the following vesting applies:
Years of Service Vested Percentage
0 to 5 years 0%
5 to 9 years 50%
1 to 14 years 75%
15 years and greater 100%
Employees hired after January 1, 2008, receive the PERS minimum and are not subject to a vesting schedule.
As of the most recent valuation dated June 30, 2014, the total participants in the Plan are as follows:
Retirees
Total
C. Funding Policy
Total
359
78
437
The City pays an allowance toward the healthcare benefits paid to retirees, spouses, and eligible dependents
under a City resolution that can be amended by the City Council. During the year ended June 30, 2016, the
City contributed $1,370,000 to the irrevocable OPEB Trust fund.
The City conducted an actuarial valuation to determine the City's obligation to fund OPEB and determined
that it served the City's interests to prefund those benefits. In December 2011, the City Council approved
Resolution 11-89 adopting the Public Agencies Post -Retirement Health Care Plan Document and Trust
Agreement. The OPEB Trust is a tax -qualified irrevocable trust, organized under Internal Revenue Code
(IRC) Section 115, established to pre -fund OPEB as described in GASB Statement No. 45. The Plan Trustee
is U.S. Bank, and Public Agencies Retirement Services (PARS) is the Trust Administrator. The City elected
a discretionary investment approach with a blended investment objective strategy. The primary objective is to
maximize total Plan return, subject to the risk and quality constraints established. The Plan's targeted rate of
return is 6.5 percent. The asset allocation ranges for this objective are 0 percent to 20 percent cash source, 30
percent to 50 percent fixed income, and 50 percent to 70 percent equity.
67
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 14 — POST -EMPLOYMENT HEALTH BENEFITS (CONTINUED)
C. Funding Policy (Continued)
For fiscal year
2015-2016,
the maximum benefit paid by the
City ,
on an individual basis,
for employees and
retirees was:
Retirees Employees
Unrepresented $ 12,199 $ 159072
SEN Local 347 12,199 159072
D. Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated based on the annual required contribution of the
employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal
cost each year and amortize any unfunded actuarial liabilities (or funding excesses) over a period not to
exceed 30 years.
The following table shows the components of the City's annual OPEB cost for the year, the amount actually
contributed to the Plan, and changes in the City's OPEB asset for the Plan:
Total
Annual required contribution $ 1,295,000
Interest on OPEB asset (4659000)
Adjustment to annual required contribution 5449000
Annual OPEB cost (expense) 0749000
Contributions made 1,3709000
Decrease in OPEB asset 49000
OPEB asset - beginning of year 7,1549774
OPEB asset - end of year $ 7,1501774
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB
asset as of June 30, 2016, were as follows:
% of Annual
Annual OPEB OPEB
OPEB Annual Cost Asset
Fiscal Year Ended Cost Contribution Contributed (Obligation)
June 30, 2014 $ 2,312,000 $ 2,303,000 99.6% $ 6,214,930
June 30, 2015 1,438,000 2,377,844 165.4% 7,154,774
June 30, 2016 074,000 1,370,000 99.7% 7,150,774
M
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 14 — POST -EMPLOYMENT HEALTH BENEFITS (CONTINUED)
E. Funded Status and Funding Progress
As of the most recent actuarial valuation date on June 30, 2014, the Plan was 93.6 percent funded. The
actuarial accrued liability for benefits was $28.9 million, and the actuarial value of assets was $27.0
million, resulting in a UAAL of $1.9 million. The covered payroll (annual payroll of active
employees covered by the Plan) was $27.4 million, and the ratio of UAAL to the covered payroll was 6.71
percent.
The schedule of funding progress, presented as required supplementary information following the notes to
financial statements, presents multi-year trend information that shows whether the actuarial value of Plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
F. Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend rate. Amounts determined regarding the funded status
of the Plan and the ARC are subject to continual revision, as actual results are compared with past
expectations, and new estimates are made about the future.
In the June 30, 2014, actuarial valuation, the entry -age actuarial cost method was used. The actuarial
assumptions include a 6.50 percent investment rate of return, which is based on the expected return on funds
invested by PARS, and an annual healthcare cost trend rate of 7.80 percent initially and reduced by
decrements of 0.6 percent to an ultimate rate of 5.0 percent thereafter. The actuarial assumption for inflation
was 3.00 percent, and the aggregate payroll increase was 3.25 percent used in the actuarial valuation. The
actuarial value of assets was determined using techniques that spread the effects of short-term volatility in the
market value of investments over a five-year period. The UAAL is being amortized as a level percentage of
projected payroll on a closed basis. The remaining amortization period at June 30, 2014 was 19 years.
NOTE 15 — INDIVIDUAL FUND DISCLOSURES — DEFICIT FUND BALANCE
Funds that have a deficit fund balance at June 30, 2016, are as follows:
Deficit Fund
Fund Balance
Major Funds:
Public Library Special Revenue Fund $ (69935,593)
Non -Major Governmental Funds:
Surface Transportation Program (699)
BJA Law Enforcement Special Revenue Fund (845)
The City plans to eliminate the deficit in the Public Library Special Revenue Fund with future property tax
receipts. The non -major governmental fund deficits will be eliminated when the intergovernmental receivables
are collected in future periods.
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 16 — DEFERRED COMPENSATION PLANIDEFINED CONTRIBUTION PLAN
The City has established deferred compensation/defined contribution plans for certain classifications of
management under IRC Section 401(a). City participation in contributions to the plans is mandatory. The City is
obligated to contribute amounts ranging from $2,000 to $18,000 per participant per year. Employee contributions
to certain plans are voluntary. During the year ended June 30, 2016, there were 990 participants in the plans. The
City's contributions totaled $192,071, and employees' contributions totaled $2,259,212.
NOTE 17— SELF-INSURANCE
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors,
and omissions; injuries to employees; and natural disasters. The City joined Special Districts Risk Management
Authority (SDRMA) in the fall of 2005. SDRMA is a self-insurance risk pool that serves as a not-for-profit
public agency to its members. Through SDRMA, the City currently holds a $500 general liability deductible. All
general liability claims above $500 and up to a limit of $10,000,000 are handled by SDRMA. The City's
workers' compensation coverage is also administered by SDRMA. The City is self-insured for workers'
compensation up to $250,000, but has purchased coverage through SDRMA for individual claims exceeding
$250,000 up to a maximum of $5,000,000. Settlements have not exceeded coverages for each of the past three
fiscal years.
The annual member contribution is $1,415,444 for the property/liability program and the workers' compensation
program (based on estimated wages).
At June 30, 2016, $80,000 was accrued by the City for general liability claims, and $2,369,815 was accrued for
workers' compensation claims and judgments. These accruals represent estimates of amounts to be paid for
incurred and reported claims, as well as IBNR claims based upon past experience and modified for current trends
and information.
Changes in the reported claims liability since June 30, 2014, resulted in the following:
Claims liability as of June 30, 2014 $ 2,1579763
Claims and changes in estimates during the year ended June 30, 2015 190289290
Claims and payments during the year ended June 30, 2015 (19192,138)
Claims liability as of June 30, 2015 199939915
Claims and changes in estimates during the year ended June 30, 2016 194309171
Claims and payments during the year ended June 30, 2016 (9749271)
Claims liability as of June 30, 2016 $ 294499815
70
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 18 — NON -COMMITMENT DEBT
A. 1915 Act Limited Obligation Improvements Bonds
On July 24, 1996, $879,432 of 1915 Act Limited Obligation Improvement Bonds (1915 Golden Valley Road
Bonds) for the Golden Valley Road Improvement Assessment District (the Golden Valley Assessment
District) were issued. The 1915 Golden Valley Road Bonds are not a general obligation of the City, and
neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The
source of the debt service is from the property assessments within the Golden Valley Assessment District.
The principal amount of debt outstanding at June 30, 2016, was $330,000.
B. 1915 Act Limited Obligation Improvements Bonds
On January 27, 2000, $790,000 of 1915 Act Limited Obligation Improvement Bonds (1915 Vermont
Drive/Everett Drive Bonds) for the Vermont Drive/Everett Drive Improvement Assessment District (the
Vermont/Everett Assessment District) were issued. The 1915 Vermont Drive/Everett Drive Bonds are not a
general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to
the payment of the bonds. The source of the debt service is from the property assessments within the
Vermont/Everett Assessment District. The principal amount of the debt outstanding at June 30, 2016, was
$430,000.
C. Community Facilities District No. 2002-1 Special Tax Bonds
On October 29, 2002, $17,370,000 of Special Tax bonds were issued for Community Facilities District
No. 2002-1 (the Community Facilities District). On October 12, 2012, these bonds were refunded with the
issuance of Community Facilities District No. 2002-1 (Valencia Town Center) Special Tax Refunding bonds
for $16,485,000. The Special Tax Refunding bonds are not a general obligation of the City, and neither the
faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the
debt service is from the property assessments within the Community Facilities District. The principal amount
of the debt outstanding at June 30, 2016 was $15,420,000.
NOTE 19 —SANTA CLARITA WATERSHED RECREATIONAND CONSERVANCYAUTHORITY
In June 1992, the City entered into a joint powers agreement with the Santa Monica Mountains Conservancy (the
Conservancy) to create the Watershed Authority. The purpose of the Watershed Authority is to acquire, develop,
and conserve additional park and open space lands, including water- oriented recreation and conservation projects.
The governing board consists of two representatives from the Conservancy and two from the City.
The City performs administrative functions for the Watershed Authority. As a result, the Watershed Authority is
reported as an agency fund in these financial statements. The Watershed Authority may request the City to make
annual contributions. For the year ended June 30, 2016, the City did not make any contributions. Separate
financial statements for the Santa Clarita Watershed Recreation and Conservancy Authority can be obtained from
the City's administrative offices at 23920 Valencia Boulevard, Santa Clarita, California 91355.
71
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 20 — SANTA CLARITA PUBLIC TELEVISIONAUTHORITY
In July 2009, the City entered into a joint powers agreement with the William S. Hart School District (the
District) to create the Santa Clarita Public Television Authority (SCPTA). As a result, the SCPTA is reported as
an Agency fund in these financial statements. The purpose of the SCPTA is to provide a forum for public,
educational, and governmental television programs by the members, individuals, and organizations in the
community. The following entities have joined the SCPTA: Saugus Union School District, Newhall School
District, Sulfur Springs School District, Castaic Union School District, and College of the Canyons. The
SCPTA has a seven -member Board of Directors consisting of one member appointed by each school district, one
member from the College, and one member from the City.
The City performs administrative functions for the SCPTA, and may, at the SCPTA's request, make annual
contributions. For the year ended June 30, 2016, the City contributed $124,724. Separate financial statements for
the Santa Clarita Public Television Authority are prepared biannually and can be obtained from the City's
administrative offices at 23920 Valencia Boulevard, Santa Clarita, California 91355.
NOTE 21— COMMITMENTS AND CONTINGENCIES
A. Construction Commitments
The City has active construction projects as of June
30, 2016. At
year-end, the City's
commitments with
contractors for infrastructure projects are as follows:
Expenditures
Contract
to Date as of
Remaining
Project
Amount
June 30, 2016
Commitments
Pavement
$ 5755440
$ 3499658
$ 2259782
Bridges
1,2515191
191589686
929505
Sidewalks
3,911,892
291409158
197719734
Medians
9585210
5329392
4259818
Trails
439,301
1909307
2489994
Traffic Signals
10,000
99497
503
B. Encumbrances
The City utilizes encumbrance accounting as a means of controlling expenditures. Under this method, funds
are encumbered when purchase orders, contracts, and other commitments are signed or approved by
authorized City officials. Such outstanding commitments at year-end do not constitute expenditures or
liabilities.
Encumbrances of balances within the governmental funds are classified as either restricted or assigned and are
included in the respective categories. These encumbrances are not separately classified in the financial
statements and are summarized at June 30, 2016, as follows:
Amount
General Fund $ 756,319
Other governmental funds 15,4765396
72
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 21— COMMITMENTS AND CONTINGENCIES (CONTINUED)
C. Contingencies
The City has received Federal grants for specific purposes that are subject to review and audit by the Federal
government. Although such audits could result in expenditure disallowance under grant terms, any required
reimbursements are not expected to be material.
In the opinion of management and legal counsel, there are no liabilities that would have a substantial adverse
effect on the financial position of the City as of June 30, 2016.
NOTE 22 — SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill), which provides for
the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity
of the City that had previously reported a redevelopment agency within the reporting entity of the City as a
blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local
government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units
of state and local government. On January 24, 2012, the City Council elected to become the Successor Agency
for the former redevelopment agency in accordance with the Bill as part of the City Resolution No. 12-3.
Each year, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated
annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable
obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
A. Cash and Investments
The balance of cash and investments at June 30, 2016, classified in the accompanying financial statements as
follows:
RDA Successor
Agency
Cash and investments pooled with City $ 195689537
Restricted:
Cash and investments 109224
Cash and investments with fiscal agent 191669084
Total $ 297449845
B. Land Held for Resale
As of June 30, 2016, the Successor Agency has $222,579 of land held for resale, which is reported at net
realizable value. There were no changes in the book value during the current year.
73
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 22 — SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
C. Due From Other Governments
Pursuant to Health and Safety Code section 34167.5, in February 2015, the State Controller's Office (SCO)
reviewed all asset transfers made by the former RDA to the City after January 1, 2011. As a result of this
review, the SCO concluded that assets transferred after January 1, 2011, included unallowable transfers to the
City totaling $14,628,194. In subsequent actions, the City returned property valued at $763,436 to the
Successor Agency, leaving $13,864,758 in unallowable transfers to be returned by the City to the Successor
Agency as of February 2015. The City has transferred certain assets to the Successor Agency. As of June 30,
2016, $7,734,479 of these unallowable transfers remains due from the City to the Successor Agency.
D. Capital Assets
RDA Successor Agency:
Non -depreciable assets:
Land
Depreciable assets:
Site improvements
Infrastructure
Total Depreciable Assets
Less accumulated depreciation:
Site improvements
Infrastructure
Total Accumulated Depreciation
Total Depreciable Assets, Net
Total Capital Assets, Net
Balance Balance
June 30, 2015 Additions Deletions June 30, 2016
532,878 $
110,310
- $ (5329878) $
110,310
4,397,651 4,3979651
15,443 4,413 19,856
395,351 85,746 481.097
The total depreciation expense charged to the RDA Successor Agency as of June 30, 2016, was $90,159.
E. Long -Term Debt
RDA Successor Agency:
Loans from the City of Santa Clarita
Tax Allocation Bonds:
Series 2008
Housing Set -Aside
Less deferred amounts for
unamortized discounts
Total Tax Allocation Bonds
Total
Classification
Balance Balance Due Within Due More
June 30, 2015 Additions Deletions June 30, 2016 One Year Than One Year
$ 12,633,832 $ 3,153,532 $ (100,306) $ 15,687,058 $ - $ 15,687,058
27,195,000
8,060,000
(510,000)
26,685,000
530,000
26,155,000
(150,000)
7,910,000
155,000
7,755,000
(127,196)
5,530
(121,666)
(5,330)
(116,336)
35,127,804
5,530
(660,000)
34,473,334
679,670
33,793,664
$ 47,761,636 $
3,159,062
$
(760,306)
$
50,160,392
$
679,670
$ 49,480,722
74
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 22 — SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
E. Long -Term Debt (Continued)
Loans from the City of Santa Clarita
At June 30, 2015, the California Department of Finance (DOF) approved the advances to the former
redevelopment agency consisting of the promissory notes outstanding between the City and the former
redevelopment agency entered into between the periods of July 1996 and June 2010. These consist of notes
outstanding from the General Fund and the Developer Fees Special Revenue Fund in the amounts of
$7,225,964 and $5,407,868, respectively using a LAIF rate of 0.26 percent, which was in effect when the
Oversight Board reinstated the loans on February 25, 2015. On September 22, 2015, the Committee on
Budget and Fiscal Review of the California State Senate approved SB 107. A mandate of this legislation
included a recalculation of the notes to the RDA Successor Agency using a 3 percent simple interest from the
origination of the note, instead of the LAIF rate. As such, the City increased the amounts reported as of June
30, 2016 in the General Fund and Developer Fees Special Revenue Fund to $9,254,794 and $6,432,264,
respectively. The unpaid accrued interest of these notes is $2,341,208 and $1,112,378, respectively.
Tax Allocation Bonds
The former redevelopment agency issued Tax Allocation Bonds, which are special obligations of the
Successor Agency secured by pledged property tax revenues. The bonds are not a debt of the City nor
payable out of any funds or properties other than those of the Successor Agency.
Tax Allocation Bonds — Series 2008
On June 12, 2008, the former redevelopment agency issued the Santa Clarita Redevelopment Agency Tax
Allocation Bonds, Series 2008, in the amount of $29,860,000. Proceeds of the bonds were used to finance
certain projects of the former redevelopment agency, fund a debt service reserve account, and pay for costs of
the bond issuance. The bonds were issued at a net discount of $165,906, which will be amortized and
recognized as interest expense over the life of the debt on a straight-line basis. This bond issue comprises
$12,065,000 serial bonds maturing annually, commencing on October 1, 2011, through 2028, and three term
bonds (totaling $17,795,000) maturing on October 1, 2032, October 1, 2037, and October 1, 2042, that are
payable in annual sinking fund installments commencing on October 1, 2029. Interest on the bonds is
payable semi-annually on October 1 and April 1 at rates ranging from 4.00 percent to 4.75 percent for the
serial bonds and from 4.75 percent to 5.00 percent for the term bonds.
The annual debt service requirements on these bonds are as follows:
Year Ending June 30, Principal
2017 $ 5303000
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
2037-2041
2042-2043
Total
75
550,000
575,000
595,000
620,000
3,510,000
4,390,000
5,545,000
7,040,000
3,330,000
$ 26,6851000
Interest
$ 192505548
1,228,948
1,206,448
1,183,048
1,158,360
5,360,143
4,454,894
3,274,450
1,742,941
168,500
S 211028,280
Total
$ 157809548
1,778,948
1,781,448
1,778,048
1,778,360
8,870,143
8,844,894
8,819,450
8,782,941
3,498,500
$ 47,713,280
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 22 — SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
E. Long -Term Debt (Continued)
Tax Allocation Bonds — Housing Set -Aside
On June 12, 2008, the former redevelopment agency issued the Santa Clarita Redevelopment Agency
Housing Set -Aside Tax Allocation Bonds, Series 2008, in the amount of $8,850,000. Proceeds of the bonds
were used to finance low- and moderate -income housing projects and programs, fund a reserve fund, and pay
for costs of the bond issuance. The bond issue comprises $3,550,000 of serial bonds maturing annually on
October 1 through 2028, and three term bonds (totaling $5,300,000) maturing on October 1, 2032, October 1,
2037, and October 1, 2042, that are payable in annual sinking fund installments commencing on October 1,
2029. Interest on the bonds is payable semi-annually on October 1 and April 1 at rates ranging from 4.00
percent to 4.875 percent for the serial bonds and at 5.00 percent for the term bonds.
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
2037-2041
2042-2043
Total
F. Deficit Net Position
Principal
$ 155,000
160,000
170,000
175,000
180,000
1,030,000
1,295,000
1,650,000
2,100,000
995,000
$ 7,910,000
Interest
$ 376,856
370,556
363,956
357,056
349,844
1,622,322
1,352,350
987,500
521,250
50,375
$ 693529065
Total
$ 531,856
530,556
533,956
532,056
529,844
2,652,322
2,647,350
2,637,500
2,621,250
1,045,375
$ 145262,065
As of June 30, 2016, the RDA Successor Agency Private -Purpose Trust Fund had a deficit net position of
$35,963,734. This will be reduced with future receipt of distributions from the Redevelopment Property Tax
Trust Fund from the County and potential asset sales.
NOTE 23 — SUBSEQUENT EVENTS
A. Tax Allocation Bonds Series 2008 Refunding —Successor Agency Trust
On September 13, 2016, the Successor Agency approved the refunding of the Tax Allocation Bonds, Series
2008, The Oversight Board approved the refunding on September 15, 2016, and the Department of Finance
approved the resolution on issuance of refunding bonds on October 14, 2016. The bond sale has not yet been
scheduled.
76
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Variance with
Operating:
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Operating
3993519114
4492329242
3492189723
Taxes
$ 7895979811 $
8391669703
$ 84,035,464
$ 8689761
Licenses and permits
593549577
690649130
7,283,898
192199768
Intergovernmental
2689968
2609136
292,869
329733
Charges for services
791789476
896419368
9,376,146
7349778
Investment income
8289834
8289834
2,211,873
193839039
Fines and forfeitures
4239000
4209300
528,836
1089536
Other revenue
3029550
394,550
589,553
1959003
Total Revenues
9299549216
999776,021
10493189639
49542,618
Expenditures:
Operating:
Personnel
3999239299
3996969148
3892859084
194119064
Operating
3993519114
4492329242
3492189723
1090139519
Capital outlay
29262,153
598229853
2,284,544
395389309
Capital Improvement Projects:
Personnel
-
-
429352
(42,352)
Operating
196259000
699209504
5039919
694169585
Total Expenditures
8391619566
9696719747
7593349622
2193379125
Excess (deficiency) of revenues
over (under) expenditures
997929650
39104,274
28,9849017
2598799743
Other financing sources (uses):
Other Financing Uses
(7509000)
(7399653)
-
7399653
Transfers in
11332,631
194679136
11491,715
249579
Transfers out
(4,330,938)
(590079313)
(5,833,447)
(8269134)
Total Other Financing Sources (Uses)
(1998,307)
(3,540,177
(4,341,732)
(8019555)
Net Change in Fund Balances
6,794,343 s
435,903)
4,642�285
5, 7 ,1
Fund Balance at Beginning of Year
116,502,631
Fund Balance at End of Year
$ 141,144,916
77
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
BRIDGE AND THOROUGHFARE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
W
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Investment income
$ 275,952 $
275,952 $
3159665
$ 399713
Developer fees
79050,000
908,255
6589588
(2499667)
Total Revenues
79325,952
15184,207
9749253
(2099954)
Expenditures:
Operating:
Personnel
1175273
1179660
959207
229453
Capital outlay
49080
297,280
2979280
-
Capital Improvement Projects:
Personnel
-
-
1309648
(1309648)
Operating
19549,984
6720
5,985
3,3709123
393509862
Capital outlay
-
158,000
1519694
69306
Debt service:
Debt services
174,000
174,000
2169984
(429984)
Total Expenditures
19845,337
75467,925
4,2619936
392059989
Excess (deficiency) of revenues
-
over(under) expenditures
59480,615
(69283,718)
(35287,683)
299969035
Other financing sources (uses):
Transfers out
(4,136)
(4,136)
(49136)
-
Net Change in Fund Balances
Fund Balance at Beginning of Year
7,350,087
Fund Balance at End of Year
4,058,268
W
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
DEVELOPER FEES SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
192429645
-
Capital Improvement Projects:
Investment income
$ 15,293 $ 15,293 $
919643
$ 76,350
Developer fees
- 1,4909842
199609002
4695160
Other revenue
- -
4539834
453,834
Total Revenues
15,293 15506,135
295059479
9995344
Expenditures:
Operating:
Operating
-
19242,645
192429645
-
Capital Improvement Projects:
Operating
1,837,510
25847,713
369032
2,8115681
Total Expenditures
158375510
4,090,358
192789677
29811,681
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,822,217)
(2,5849223)
192269802
318115025
Other financing sources (uses):
Transfer out
(269000)
(86,596)
(869596)
-
Net Change in Fund Balance
(15848,217)
(2,6705819)
191409206
3,811,025
Fund Balance at Beginning of Year
3,611,179
Fund Balance at End of Year
S
4,751,385
79
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PUBLIC LIBRARY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
137,160
902
Operating
Taxes
$ 597659190 $ 690509190
$ 691139602
$ 635412
Charges for services
859000 859000
855000
-
Investment income
- -
30,896
30,896
Other revenue
1509000 1509000
184,269
345269
Total Revenues
690009190 692859190
69413,767
128,577
Expenditures:
Operating:
Personnel
889483
1389062
137,160
902
Operating
590499341
591089691
59056,163
52,528
Capital Improvement Projects:
Operating
-
469558
469558
-
Debt service:
Debt services
5009000
5009000
999545
4005455
Total Expenditures
596379824
597939311
59339,426
453,885
Excess (deficiency) of revenues
-
over(under)expenditures
3629366
4919879
190745341
582,462
Other financing sources (uses):
Transfers out
(1760)
(2,760)
(29760)
-
Net Change in Fund Balances
S 359,606 $
489,119 $
110719581 $
582,462
Fund Balance at Beginning of Year
(890079174)
Fund Balance at End of Year
(699359593)
80
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT 41 SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
81
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Taxes
$ 8535438 $
8539438 $
9395937
$ 869499
Special assessments
1691775339
1651775339
1599235892
(2539447)
Investment income
229,618
2299618
5385796
3099178
Other revenue
-
109000
32,210
229210
Total Revenues
179260,395
17,2709395
1794345835
1649440
Expenditures:
Operating:
Personnel
196305566
156559380
196105148
45,232.00
Operating
119044,406
11,2459484
996629099
155839385
Capital outlay
1715030
1715030
1739328
(29298)
Capital Improvement Projects:
Personnel
-
-
2055615
(2059615)
Operating
390915100
7,2059116
390115040
451949076
Total Expenditures
1599379102
2052779010
1496625230
596149780
Excess (deficiency) of revenues
over (under) expenditures
19323,293
(350069615)
29772,605
557799220
Other financing sources (uses):
Transfers in
105000
109000
10,000
-
Tmnsfers out
(209,893)
(236,015)
(236,015)
-
Total Other Financing Sources (Uses)
199,893
226,015)
(226,015)Net
Change in Fund Balances
1.1231400
(3,232,630)
2,546—,5 Tuo
5,779,220
Fund Balance at Beginning of Year
301040,286
Fund Balance at End of Year
32,586,876
81
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FUNDING PROGRESS
FOR THE YEAR ENDED JUNE 309 2016
Other Post -Employment Benefits
The schedule of funding progress presents multiyear trend information that shows whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
The funded status of the City's other post -employment benefits plan is as follows (in thousands):
*Based on most recent actuarial valuation available.
M
(D) (E) (F)
(Unfunded)
Actuarial
Liability as
Funded Percentage of
Ratio Covered Covered Payroll
[(A)/(B)] Payroll [(C)/(E)]
0.00% $ 25,094 165.08%
64.54%
(A)
(B)
(C)
93.62%
(Unfunded)
6.73%
Actuarial
Actuarial
Actuaarial
Actuarial
Accrued
Accrued
Valuation
Asset
Liability
Liability
Date*
Value
Entry Age
[(B) -(A)]
7/1/2010
$ -
$ 419425
$ (413425)
7/1/2012
19,928
309879
(109951)
7/1/2014
27,035
289876
(19841)
*Based on most recent actuarial valuation available.
M
(D) (E) (F)
(Unfunded)
Actuarial
Liability as
Funded Percentage of
Ratio Covered Covered Payroll
[(A)/(B)] Payroll [(C)/(E)]
0.00% $ 25,094 165.08%
64.54%
235880
45.86%
93.62%
279368
6.73%
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
AND RELATED RATIOS
LAST TEN YEARS*
AS OF THE FISCAL YEAR ENDED JUNE 30, 2016
The Schedules of Changes in the City's Net Pension Liability and Related Ratios are as follows:
Measurement Date
June 30, 2015
June 30, 2014
Total Pension Liability
2,1649107
2,339,435
Service cost
$ 494189053
$ 4462,544
Interest
1094439680
9,588,693
Changes in Benefit Terms
-
(2,561,655)
Difference between Expected and Actual Experience
416,626
-
Changes of Assumptions
(390099808)
19,583,191
Benefit Payments, Including Refunds of Employee Contributions
(2,9719092)
(2,561,655)
Net Change in Total Pension Liability
9,297,459
11,489,582
Total Pension Liability - Beginning
138,388,376
126,898,794
Total Pension Liability - Ending (a)
$ 1471685,835
S 1381388376
Plan Fiduciary Net Postion
Contributions - Employer
$ 3,740,145
$ 3,562,246
Contributions - Employee
2,1649107
2,339,435
Net Investment Income
29506,239
16,243,165
Administrative expenses
(1319529)
-
Benefit Payments, Including Refunds of Employee Contributions
(299719092)
(2,561,655)
Plan to Plan Resource Movement
99685
-
Net Change in Fiduciary Net Position
59317,555
19,583,191
Plan Fiduciary Net Postilion - Beginning
1115512,216
91,929,025
Plan Fiduciary Net Postion - Ending (b)
$ 116,8295771
$ 111,512,216
Net pension liability - ending (a) - (b) $ 30,856,064 $ 26,876,160
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.11% 80.58%
Covered Payroll $ 2792349699 $ 26,879,556
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 113.30% 99.99%
Notes
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes that occurred after June
30, 2014. This applies for voluntary benefit changes as well as any offers of two years' Additional Service Credit (a.k.a. Golden
Handshakes).
Changes of Assumptions: The discount rate was revised from 7.5% to 7.65% during the measurement period ending June 30, 2015 to be in
accordance with GASB 68 paragraph 68.
Covered Payroll: In accordance with GASB Statement No. 82, Pension Issues — An Amendment of GASB Statements No. 67, No. 68, and
No. 73, we have restated to show covered payroll based on pensionable earnings.
* Fiscal Year 2014-15 was the first year of implementation; therefore only two years are shown until a full 10 -year trend is compiled
99
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF CITY CONTRIBUTIONS
LAST TEN YEARS*
AS OF THE FISCAL YEAR ENDED JUNE 301 2016
The Schedule of City Contributions during the fiscal year is as follows:
June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013
Actuarially determined contribution $ 3,9589892 $ 397409138 $ 3,562,246 $ 3,3199326
Contributions in relation to the actuarially determined contribution (3,9589892) (397405138) (39562,246) (3,319,326)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered Payroll
$ 27,934,377 $ 27,234,699 S 26,879,556 $ 25,256,659
Contributions as a Percentage of Covered Payroll 14.17% 13.73% 13.25% 13.14%
Valuation Date:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2015-16 were from June 30,
2014 public agency valuations.
Actuarial Cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increase
Investment rate of return
Retirement age
Mortality
Note:
Entry Age Normal
Level Percentage of Payroll, Closed
19 years
Actuarial Value of Assets
2.75%
Varies by Entry Age and Service
7.65%
The probabilities of Retirement are based on the 2010 CaIPERS Experience Study
for the period from 1997 to 2007.
The probabilities of mortality are based on the 2010 CalPERS Experience Study
for the period from 1997 to 2007. Pre-refirement and post retirement mortality
rates include 5 years of projected mortality improvement using Scale AA
published by the Society of Actuaries.
Covered Payroll: In accordance with GASB Statement No. 829 Pension Issues — An Amendment of GASB Statements No. 67, No. 68, and
No. 73, we have restated to show covered payroll based on pensionable earnings.
01
June 30, 2012
June 30, 2011
June 30, 2010
June 30, 2009
June 30, 2008
June 30,2007
$ 3,2249628
$ 29916,852
$ 29919,550
$ 2,8659328
$ 21659,975
$ 29470,285
(3,2249628)
(29916,852)
(29919,550)
(258659328)
(2,6595975)
(29470,285)
$ -
$ -
$ -
$ -
$ -
$ -
$ 24,8075314
$ 249940,516
$ 259336,721
$ 26,1459818
$ 23,3555540
$ 219540,546
13.00%
11.70%
11.52%
10.96%
11.39%
11.47%
m
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 309 2016
BUDGETARY INFORMATION
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles
in the United States of America for the General Fund and each of the special revenue funds. All annual
appropriations lapse at fiscal year-end.
On or before the last day in January of each year, all operational units submit requests for appropriations
to the City Manager for budget preparation purposes. Before April 30, the proposed budget is presented
to the City Council for review. The City Council holds public hearings, and a final budget must be
prepared and adopted no later than June 30.
The appropriated budget is prepared by fund, function, and department at the category level. The City
reports the following categories: personnel, operating and capital outlay. Additionally, the City
separately prepares a capital improvement projects budget. The City's Department Heads, with
approval of the City Manager, may make transfers of appropriations within certain line -items within a
program, but may not exceed the total appropriated amounts for each category. City Manager may
approve transfers that do not change the total appropriated amount within the fund. The legal level of
budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the
category level.
Under encumbrance accounting, purchase orders, contracts, and other commitments for expenditures are
recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed
as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures
or liabilities, encumbrances outstanding at year-end are classified as either restricted, committed, or
assigned fund balances. Unexpended appropriations lapse at year-end.
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 309 2016
For the year ended June 30, 2016, expenditures exceeded appropriations in the following categories (legal level of
budgetary control) of the respective funds:
Excess
Fund
Major Governmental Funds:
General Fund
Capital Improvement Projects - Personnel
Bridge and Thoroughfare Special Revenue Fund
Capital Improvement Projects - Personnel
Debt Service - Debt Services
Landscape Maintenance District #1 Special Revenue Fund
Operating - Capital Outlay
Capital Improvement Projects - Personnel
Non -Major Governmental Funds:
Bikeway Special Revenue Fund
Capital Improvement Projects - Personnel
Gas Tax Special Revenue Fund
Capital Improvement Projects - Personnel
Proposition A Special Revenue Fund
Transfers Out
State Park Special Revenue Fund
Operating - Personnel
TDA Special Revenue Fund
Capital Improvement Projects - Personnel
Traffic Safety Special Revenue Fund
Transfers Out
Community Development Block Grant Special Revenue Fund
Operating - Operating
Capital Improvement Projects - Personnel
Air Quality Management District Special Revenue Fund
Capital Improvement Projects - Personnel
Stormwater Special Revenue Fund
Capital Improvement Projects - Personnel
Public Education and Government Special Revenue Fund
Operating - Operating
Proposition C Special Revenue Fund
Capital Improvement Projects - Personnel
Federal Grants Special Revenue Fund
Capital Improvement Projects - Personnel
Open Space Preservation District Special Revenue Fund
Operating - Personnel
Transfers Out
Housing Successor Agency Special Revenue Fund
Operating - Operating
General Capital Projects Fund
Capital Improvement Projects - Personnel
Public Financing Authority Capital Projects Fund
Transfers Out
Public Financing Authority Debt Service Fund
Bond Retirement
ma
Expenditures
Over
Appropriations Expenditures Appropriations
$ 42,352 $ (42,352)
- 130648 (130,648)
174,000 216,984 (42,984)
171,030 173,328 (2,298)
205,615 (205,615)
5,312
(5,312)
-
108,141
(108,141)
3,401,396
3,757,974
(356,578)
44,410
52,901
(8,491)
-
141,942
(1419942)
420,522
4455101
(245579)
683,107
777,798
(949691)
149699
(145699)
55818
(59818)
-
45612
(4,612)
144,433
1485165
(3,732)
-
145566
(14,566)
1895024
(189,024)
178,542
1799182
(640)
869,433
293039460
(1,434,027)
3,700,000
49432,349
(732,349)
-
509551
(50,551)
848,451
252829478
(1,434,027)
-
3259075353
(32,907,353)
CITY OF SANTA CLARITA, CALIFORNIA
NON -MAJOR GOVERNMENTAL FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2016
The Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally
restricted to expenditures for specific purposes.
Bikeway — To account for monies received from the State of California restricted for bicycle and pedestrian
facilities available under Article 3 of the Transportation Development Act (SB821).
Gas Tax — To account for monies received and expended from the state and county gas tax allocation restricted to
fund various street highway improvements, including maintenance.
Proposition A — To account for the City's share of the one-half percent (0.5 percent) increased sales tax in Los
Angeles County as a result of "Proposition A." This revenue is to be used for transportation -related purposes.
Special Assessment — To account for special assessments received for small assessment districts. These funds
may be used for maintenance expenses with the districts.
State Park — To account for grant monies received from the State of California Department of Parks and
Recreation for construction or improvements of parkland within the City.
TDA (Transportation Development Act) — To account for monies received from the State of California under
Article 8 of the TDA. These funds may be used for local streets and road expenditures when the City's unmet
transportation needs have been satisfied.
Traffic Safety — To account for monies received from vehicle code fines. This fund is used to finance law
enforcement expenditures.
CDBG (Community Development Block Grant) — To account for Federal entitlements under the Housing and
Community Development Act of 1974, as amended. The City Council annually allocates CDBG funds to various
programs.
AQMD (Air Quality Management District) — To account for revenues and expenditures for Air Quality
Management.
Stormwater — To account for monies received from assessments restricted for the use of the stormwater and run-
off programs.
Surface Transportation Program — To account for receipts and disbursements associated with the Surface
Transportation Program restricted for construction, reconstruction, and improvement of highways and bridges on
eligible Federal Aid highway routes.
BJA Law Enforcement — To account for receipts and disbursements for the BJA law enforcement grant restricted
for police department programs.
Supplemental Law Grant — To account for receipts and disbursements for the supplemental law grant restricted
for police department programs.
HOME — To account for receipts and disbursements for the activity for the HOME grant program restricted to
expand the supply of affordable housing for very low- and low-income families.
Library Facilities Fees — To account for monies received from the library facilities developer fees, which are
restricted for use on library facilities.
88
CITY OF SANTA CLARITA, CALIFORNIA
NON -MAJOR GOVERNMENTAL FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2016
Special Revenue Funds (Continued)
Public Education and Government — To account for the one -percent (1%), PEG Capital Grant funds received
from video service providers pursuant to the Digital Infrastructure and Video Competition Act of 2006.
Proposition C — To account for the City's share of the one-half percent (0.5%) increased sales tax in Los Angeles
County as a result of Proposition C. This revenue is to be used for transportation -related purposes.
Federal Grants — To account for receipts and disbursements of miscellaneous federal grant monies not accounted
for in other funds. These receipts are restricted for planning, design, improvements, and maintenance of streets,
roads and bridges, facility construction and improvements, transit operations, and other transit -related
expenditures.
Measure R — To account for the half -cent sales tax revenues that Los Angeles County voters approved in
November 2008 to meet the transportation needs of Los Angeles County.
Tourism Marketing District — To account for receipts and disbursements associated with promoting local
businesses and tourism in the City of Santa Clarita through the Tourism Marketing District. The Tourism
Marketing District was formed to provide financing for public programs to attract tourist visits to areas where
tourism is economically important and desired. The Tourism Marketing District was established and is levied
pursuant to the Parking and Business Improvement Area Law of 1989, Part 6 of Division 18 of the California
Streets and Highways Code (the 1989 Law) and the provisions of the California Constitution Article XIIID
(Proposition 218).
OPSD (Open Space Preservation District) — To account for monies received from special assessments for the
costs of acquiring open space lands, parks, and parkland in accordance with the City's programs.
Miscellaneous Grants — To account for receipts and disbursements of non-federal miscellaneous grants, which are
restricted for planning, design, improvements, and maintenance of streets, roads, and bridges, facility construction
and improvements, transit operations, and other transit -related expenditures.
Park Dedication — This fund accounts for monies received from developers restricted to finance the acquisition
and develop new parkland space. These monies are restricted under the Quimby Act by ordinance and require the
dedication of land or impose a requirement of the payment of fee in lieu.
Housing Successor Agency — To account for the transactions of the Housing Successor Agency for the
continuation of the low- and moderate -income programs of the former redevelopment agency.
Tourism Marketing Bureau — To account for monies received from local and regional tourism -related
organizations restricted for tourism and business development within the City's boundaries.
The Capital Projects Funds are used to account for and report financial resources that are restricted,
committed, or assigned to expenditures for capital outlays, including the acquisition or construction of
capital facilities and other assets.
General Capital Projects — To account for major capital improvement projects not accounted for in other funds.
Public Financing Authority — To account for the construction of all capital projects that utilize public financing
authority funds.
CITY OF SANTA CLARITA, CALIFORNIA
NON -MAJOR GOVERNMENTAL FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2016
The Debt Service Funds
are used to
account for
and report
financial resources that are restricted,
committed, or assigned to
expenditures
for principal
and interest.
Public Financing Authority — To account for principal and interest payments for obligations issued by the Santa
Clarita Public Financing Authority.
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Revenue Funds
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities $ 92,689 $ 2445841 $ 265184 $ 4139610
Due to other governments - - - -
Due to other funds - - - -
Total Liabilities 92,689 244,841 26,184 4139610
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund balances (deficit)
Nonspendable
-
-
- 69271
Special
1149904
Bikeway
Gas Tax
Proposition A
Assessment
Assets:
- -
Unassigned
-
-
Cash and investments
$ 196,006
$ 29496,209
$ 26,361
$ 6,7239474
Receivables:
Resources, and Fund Balances
Accounts, net
-
32,271
-
355386
Interest
485
5,756
65
175739
Taxes
-
-
-
1045344
Loans
-
Prepaid costs
-
-
-
69271
Due from other governments
119102
-
-
19177
Land held for resale
-
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total Assets
207,593
2,534,236
26,426
6089391
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities $ 92,689 $ 2445841 $ 265184 $ 4139610
Due to other governments - - - -
Due to other funds - - - -
Total Liabilities 92,689 244,841 26,184 4139610
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund balances (deficit)
Nonspendable
-
-
- 69271
Restricted
1149904
292895395
242 6,468,510
Assigned
-
-
- -
Unassigned
-
-
- -
Total Fund Balances (Deficit)
114,904
29289,395
242 6,4749781
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
S 207,593 S
21534,236 $
26,426 $ 6,8889391
(Continued)
91
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Prepaid costs
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Revenue Funds
State Park TDA Traffic Safety CDBG
$ - $ 99246,522 $ - $
22,891
92,175
789848 299666 3855506
$ 79047 $ 194299651 $ $ 2835469
719801 - 299666 102,037
789848 194299651 29,666 3855506
92,175
92,175
7,839,762
- 79839,762 - -
$ 78,848 $ 91269,413 $ 29,666 $ 477,681
92
(Continued)
WFA
$ 79047 $ 194299651 $ $ 2835469
719801 - 299666 102,037
789848 194299651 29,666 3855506
92,175
92,175
7,839,762
- 79839,762 - -
$ 78,848 $ 91269,413 $ 29,666 $ 477,681
92
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Revenue Funds
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities $ 45851 $ 2979315 $ 25399 $ 12,333
Due to other governments - - - -
Due to other funds - - 201,939 85430
Total Liabilities 49851 2979315 2049338 205763
Deferred Inflows of Resources:
Unavailable revenues - - 700 -
Total Deferred Inflows of Resources - - 700 -
Fund balances (deficit)
Nonspendable - - - -
Restricted 7175331 594769592
Assigned - - - -
Unassigned - - (699) (845)
Total Fund Balances (Deficit) 717,331 55476,592 (699) (845)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 722,182 $ 5,773,907 $ 204,339 S 19,918
(Continued)
93
Transportation BJA Law
AQMD
Stormwater
Program Enforcement
Assets:
Cash and investments
$ 647,624
$ 517139586
$ - $
Receivables:
Accounts, net
-
(69949)
- -
Interest
1,603
139425
-
Taxes
539845
-
Loans
-
-
Prepaid costs
-
-
- -
Due from other governments
72,955
2045339 195918
Land held for resale
-
-
- -
Restricted assets:
Cash and investments
-
-
- -
Cash and investments with fiscal agents
-
-
- -
Total Assets
7225182
77 'i73q i
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities $ 45851 $ 2979315 $ 25399 $ 12,333
Due to other governments - - - -
Due to other funds - - 201,939 85430
Total Liabilities 49851 2979315 2049338 205763
Deferred Inflows of Resources:
Unavailable revenues - - 700 -
Total Deferred Inflows of Resources - - 700 -
Fund balances (deficit)
Nonspendable - - - -
Restricted 7175331 594769592
Assigned - - - -
Unassigned - - (699) (845)
Total Fund Balances (Deficit) 717,331 55476,592 (699) (845)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 722,182 $ 5,773,907 $ 204,339 S 19,918
(Continued)
93
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Prepaid costs
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Revenue Funds
Supplemental Library Education and
Law Grant HOME Facilities Fees Government
$ 16,596 $ 159538 $ 8579734 $ 195659341
41 38 25123 39875
- - - 1249966
293659456 -
44,714
T775 I�, 1, 5 57 7 1,694,183
$ 30,584 $ $ 99000 $ 109232
30,584 9,000 109232
2,365,456 -
2,365,456
30,767 159576 8509857 796839950
30,767 15,576 850,857 196839950
S 61,351 S 2,381,032 $ 859,857 $ 11694,182
94
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Prepaid costs
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Revenue Funds
Marketing
Proposition C Federal Grants Measure R District
1,3049689 $ 3829645 $ 494855943 $ 8279958
3,230 11,105 29050
- 82,605
351219542 7185313
4,429,4611,100,9584,417,0481 ,61
$ 4859122 $ 1935946 $ 8,126 $ 699392
2,7039762 - - -
M88,884 193,946 81126 699392
1,2329803 201,779
1,2329803 201,779
79774 705,233 454889922 8439221
71774 7055233 49488,922 8439221
S 4,429,461 $ 1,100,958 $ 4,497,048 $ 9129613
95
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Prepaid costs
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special Revenue Funds
Housing
Miscellaneous Park Successor
OSPD Grants Dedication Agency
$ 6,1813819 $ 2229524 $ 7,4825736 $ 1999735
159339 18,523 494
32,048 - -
237,349 -
- 207,110
- 206,386
235 -
6,229,441 $ 459,873 7,501,259 S 613,725
$ 289286 $ 120,273 $ 1699349 $ -
- - - 34,478
289286 1205273 1699349 34,478
33,675
33,675
69201,155 3059925 79331,910 5795247
6,201,155 3059925 7,3319910 5799247
$ 612299441 $ 459,873 $ 7,501,259 $ 613,725
M
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Assets:
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Prepaid costs
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special Revenue
Debt Service
Funds
Capital Projects
Funds
Fund
Tourism
General Public
Public
Marketing
Capital Financing
Financing
Bureau
Projects
Authority
Authority
$ 319727 $ 199549057 $
10,875
10 $ 3,368
32
$ $ 1239096 $ $
123,096
- 10,875 -
32,694 - - 39400
- 158309961 10 -
329694 198419836 10 3,400
$ 32,694 $ 1,964,932 $ 10 $ 39400
97
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
JUNE 309 2016
Liabilities, Deferred Inflows of Resources
Total Non -major
and Fund Balances
Governmental
Liabilities:
Funds
Assets:
$ 490619795
Cash and investments
$ 5095829202
Receivables:
391179635
Accounts, net
61,596
Interest
1189861
Taxes
3979808
Loans
294579631
Prepaid costs
179146
Due from other governments
4,9259429
Land held for resale
2079110
Restricted assets:
198309971
Cash and investments
2069386
Cash and investments with fiscal agents
267
Total Assets
S 581974,436
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
$ 490619795
Due to other governments
349478
Due to other funds
391179635
Total Liabilities
792139908
Deferred Inflows of Resources:
Unavailable revenues
399269588
Total Deferred Inflows of Resources
399269588
Fund balances (deficit):
Nonspendable
179146
Restricted
4599879367
Assigned
198309971
Unassigned
(19544)
Total Fund Balances (Deficit)
4798339940
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
S 58,974,436
98
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total Revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community services
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
Special
Bikeway Gas Tax Proposition A Assessment
199930 - 3,4409102
49980,527 - 113409426
2049713 666,937 25,784 -
204,713 516675394 25,784 4,7801528
(609893) (9549326) 397589217 672,407
2379755 - 126,394
(1279173) (397579974) (99674)
110,582 (397579974) 116,720
(609893) (8439744) 243 789,127
1759797
39133,139
(1)
5,6855654
-
-
-
593079772
1419615
495689328
397749849
-
29205
409870
4,912
113,522
-
103,870
4,240
31,641
1439820
49713,068
39784,001
5,452,935
199930 - 3,4409102
49980,527 - 113409426
2049713 666,937 25,784 -
204,713 516675394 25,784 4,7801528
(609893) (9549326) 397589217 672,407
2379755 - 126,394
(1279173) (397579974) (99674)
110,582 (397579974) 116,720
(609893) (8439744) 243 789,127
1759797
39133,139
(1)
5,6855654
$ 1149904 $
292899395 $
242 $
6,474,781
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total Revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community services
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
State Park TDA Traffic Safety CDBG
789851 7,7155025 - 194339131
1275443 184 -
4445917
789851 7,8425468 4455101 194339131
78,851
- 6,7945555 - 939933
- 968,063
6745771 - 2569915
100,000
14,220
789851 7,4695326 19433,131
3739142 4459101 -
(445,101) -
- (4455101) -
373,142 -
714669620 - -
$ - $ 7,8395762 $ - $ -
100
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total Revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community services
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
Surface
Transportation BJA Law
AQMD Stormwater Program Enforcement
$ $ - $ $
299979026 - -
2729762 - 2039640 509982
109193 899296 - -
268,046
2829955 393549368 2039640 509982
50,981
159461 392739813 1899448 -
629349 279181 700 -
779810 393009994 1909148 509981
2059145 539374 139492 1
9,590
(399863) - -
(309273) - -
2055145 239101 139492 1
5125186
554539491
(149191)
(846)
$ 7179331 $
5,4769592 $
(699)
$ (845)
101
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total Revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community services
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Special Revenue Funds
Public
Supplemental Library Education and
Law Grant HOME Facilities Fees Government
$ - $ - $ - $ 5095731
381,579
242 258 12,736 255437
392,923
3815821 258 405,659 5359168
- - 9,000 2269579
3679004 - - -
29,171
3679004 - 99000 2559750
7 258 3969659 2799418
14,817 258 396,659 279,418
15,950
15,318
454,198
1,4049532
S 30,767 $
15,576 $
850,857 S
1,6839950
102
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total Revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community services
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Suecial Revenue Funds
Proposition C
Federal
Grants
Measure R
Tourism
Marketing
District
$ 7,774 $
7059233 $
4,4889922 $
8439221
751485098
29235,464
293499773
-
-
-
-
7259191
235121
-
689826
12,786
75171,219
25235,464
294189599
737,977
484,986
351325438 237,079 294649069
5875732 1,5609031 -
35720,170 197979110 2,464,069 4849986
35451,049 4389354 (45,470) 2529991
(25832,184) - - -
(25832,184) - - -
618,865 4389354 (45,470) 252,991
(611,091)
2669879
455349392
5909230
$ 7,774 $
7059233 $
4,4889922 $
8439221
103
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Special Revenue Funds
Current:
Housing
General government
Miscellaneous
Park
Successor
-
OSPD
Grants
Dedication
Agency
Revenues:
Parks, recreation and community services
-
-
-
Taxes
$ -
$ -
$ -
$ -
Special assessments
2,273,751
-
-
-
Intergovernmental
-
7339787
-
-
Charges for services
86,655
-
-
-
Investment income
989711
-
115,172
2,378
Fines and forfeitures
-
-
-
-
Developer fees
-
-
35261,286
-
Otherrevenue
Total Expenditures
9279243
8139708
22,061
Total Revenues
294599117
7335787
3,3769458
24,439
Expenditures:
Current:
General government
4209439
4365053
-
-
Public safety
-
1125848
-
-
Parks, recreation and community services
-
-
-
-
Public works
-
39500
-
-
Community development
-
-
-
3,700,000
Capital outlay
5069804
2619307
269,896
-
Debt service:
Principal
-
-
-
-
Interest and fiscal charges
-
-
-
7329349
Cost of issuance
Total Expenditures
9279243
8139708
2699896
45432,349
Excess (Deficiency) of Revenues Over
(Under) Expenditures
195319874
(799921)
391069562
(454075910)
Other Financing Sources (Uses):
Bonds issued - - - -
Premium on bonds issued - - - -
Payment to refunding bond escrow agent - - - -
Transfers in - - - -
Transfers out (2,3035460) - - -
Total Other Financing Sources (Uses) (2,3035460) - - -
Net Change in Fund Balances (771,586) (799921) 391069562 (494079910)
Fund Balances (Deficit), Beginning of Year 61972,741 385,846 412257348 4,9879157
Fund Balances, End of Year $ 672017155 $ 3057925 $ 71331,910 S 5799247
(Continued)
104
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total Revenues
Expenditures:
Current:
General government
Public safety
Parks, recreation and community services
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued
Premium on bonds issued
Payment to refunding bond escrow agent
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year
Fund Balances, End of Year
Special Revenue
197909138
10
Debt Service
Fund
Capital Projects
Fund
Fund
Tourism
General
Public
Public
Marketing
Capital
Financing
Financing
Bureau
Projects
Authority
Authority
52,634
423 30
100,000
539057 1009000 30
25,364
22,465
197249146 - -
- 2,694,236
- 2,875,808
- - - 600,910
259364 197469611 - 6,1709954
279693 (196469611) - (65170,924)
31,325,000
1,672,352
- - (3259075353)
196989309 29282,478 6,0845322
(292829478)
196989309 65174,321
279693 519698 - 3,397
59001
197909138
10
3
$ 329694 $
198419836 $
10 $
39400
105
(Continued)
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Total Non -major
Current:
Governmental
General government
Funds
Revenues:
530,833
Taxes
$ 509,731
Special assessments
10,5785549
Intergovernmental
31,0875884
Charges for services
864,480
Investment income
7485745
Fines and forfeitures
444,917
Developer fees
3,654,209
Other revenue
529,858
Total Revenues
48,4185373
Expenditures:
Current:
General government
5,0625453
Public safety
530,833
Parks, recreation and community services
785851
Public works
22,5475714
Community development
4,668,063
Capital outlay
6,858,437
Debt service:
Principal
2,794,236
Interest and fiscal charges
3,6225377
Cost of issuance
600,910
Total Expenditures
46,763,874
Excess (Deficiency) of Revenues Over
(Under) Expenditures
1,654,499
Other Financing Sources (Uses):
Bonds issued 31,3255000
Premium on bonds issued 1,6725352
Payment to refunding bond escrow agent (329907,353)
Transfers in 10,438,848
Transfers out (11,797,907)
Total Other Financing Sources (Uses) (152695060)
Net Change in Fund Balances 3855439
Fund Balances (Deficit), Beginning of Yew 471448,501
Fund Balances, End of Year $ 47,833,940
106
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
BIKEWAY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2016
Revenues:
Intergovernmental
Investment income
Total Revenues
Expenditures:
Capital Improvement Projects:
Personnel
Operating
Total Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 137,977 $ 1439138 $ 1419615 $ (15523)
- - 2,205 21205
1375977 1439138 1439820 682
- - 55312 (55312)
137,977 3189001 1999401 11000
1379977 3189001 204,713 1131288
$ $ (1749863)
107
(60,893) $ 1135970
175,797
114,904
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Intergovernmental
Investment income
Other revenue
Total Revenues
Expenditures:
Operating:
Personnel
Operating
Capital outlay
Capital Improvement Projects:
Personnel
Operating
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other financing sources (uses):
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 45406,396 $ 4,5649642 $ 495689328 $ 39686
- - 40,870 4070
- 58,180 1039870 45,690
49406,396 4,6229822 497139068 90,246
25059,138
290049088
1,9889228
15,860
197929619
1,772,954
157469634
26,320
228,500
6959600
5509948
1445652
- - 1089141 (1085141)
766,399 25276,788 192739443 190035345
45846,656 657499430 596679394 150825036
(4409260) (2,126,608) (9549326) 151729282
Transfers in
237,755
2379755
2379755
Transfer out
(1279173)
(127,173)
(1275173) -
Total Other Financing Sources (Uses)
110,582
110,582
1109582
Net Change in Fund Balance
S (329,678)
S (2,016,026)
(8439744) 151729282
Fund Balance at Beginning of Year
Fund Balance at End of Year
108
3,133,139
S 292899395
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
109
Variance with
Budgeted
Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 397329157
$ 397769396 $
397749849
$ (19547)
Investment income
-
-
49912
49912
Other revenue
-
-
49240
45240
Total Revenues
317325157
3,7769396
3,7849001
7,605
Expenditures:
Capital Improvement Projects:
Operating
-
302,283
259784
2769499
Excess (Deficiency) of Revenues
Over (Under) Expenditures
397329157
314749113
39758,217
2849104
Other financing sources (uses):
Transfer out
(3,732,157)
(3,401,396)
(397579974)
(356,578)
Net Change in Fund Balance
7 .7177
, 7
Fund Balance at Beginning of Year
(1)
Fund Balance at End of Year
$
242
109
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
SPECIAL ASSESSMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Special assessments
Charges for services
Investment income
Other revenue
Total Revenues
Expenditures:
Operating:
Personnel
Operating
Capital outlay
Capital Improvement Projects:
Operating
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other financing sources (uses):
2979442
2959148
2889706 6,442
Variance with
Budgeted Amounts
414609569 583,165
Final Budget
Original
Final
Actual
Positive/(Negative)
116,720
Net Change in Fund Balance
$ 66,508 S
4,020
5,2239166
552239166
$ 5,3079772
$ 849606
5,000
-
-
-
38,321
389321
113,522
759201
-
-
31,641
319641
59266,487
5,2619487
55452,935
1915448
2979442
2959148
2889706 6,442
419845857
5,0439734
414609569 583,165
295640
299640
29,640
4,800
59665
1,613
49052
593165739
5,3749187
45780,528
5939659
(50,252) (1129700) 672,407 785,107
Transfers in
126,394
1269394
1265394 -
Transfer out
(99634)
(99674)
(9,674)
Total Other Financing Sources (Uses)
116,760
116,720
116,720
Net Change in Fund Balance
$ 66,508 S
4,020
7895127 785,107
Fund Balance at Beginning of Year
Fund Balance at End of Year
110
5,685,654
6,474,781
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
STATE PARK SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Intergovemmental
Expenditures:
Operating:
Personnel
Operating
Total Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 83,130 $ 83,130 $ 789851 $ (49279)
56,230
44,410
525901
(85491)
269900
269900
25,950
950
839130
719310
78,851
(75541)
$ $ 11,820
111
$ (11,820)
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Intergovernmental
Investment income
Total Revenues
Expenditures:
Capital Improvement Projects:
Personnel
Operating
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other financing sources (uses):
Transfer out
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 85334,482 $ 817039742 $ 797159025 $ (9889717)
- - 1279443 127,443
85334,482 8,7039742 798429468 (861,274)
- - 1419942 (1415942)
89356,374 165262,839 793279384 899359455
85356,374 165262,839 794699326 8,7935513
(219892) (7,5599097) 3739142 759329239
(86,023
�(T33
112
7,466,620
S 71839,762
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Investment income $ - $ - $ 184 $ 184
Fines and forfeitures 3809000 3805000 4449917 64,917
Total Revenues 3809000 3805000 4459101 65,101
Other financing sources (uses):
Transfer out(� 380,000) 420 522) (4459101) (24i 579)
Net Change in Fund Balance
Fund Balance at Beginning of Year -
Fund Balance at End of Year $
113
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 194059643 $ 11501,839 $ 19433,131 $ (68,708)
Expenditures:
Operating:
Personnel
1989316
202,949
190,265
129684
Operating
7839107
683,107
7775798
(945691)
Capital Improvement Projects:
Personnel
-
149699
(145699)
Operating
3109000
506,196
336,149
170,047
Debt Service:
Debt Services
1149220
114,220
114,220
-
Total Expenditures
1,4059643
1,506,472
15433,131
73,341
Net Change in Fund Balance
- —T--TT-6nT
-
G3
Fund Balance at Beginning of Year
-
Fund Balance at End of Year
114
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
AIR QUALITY MANAGEMENT DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Intergovernmental
Investment income
Total Revenues
Expenditures:
Operating:
Operating
Capital outlay
Capital Improvement Projects:
Personnel
Operating
Total Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 2575000 $
2579000 $
272,762 $
159762
697
697
10,193
99496
2575697
2579697
282,955
259258
18,590 209532 155051 59481
410 410 410 -
- - 59818 (5,818)
7465296 7469296 56,531 6899765
7655296 7679238 779810 6899428
� �5
115
512,186
$ 717,331
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
STORMWATER SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Special assessments
Investment income
Charges for services
Other revenue
Total Revenues
Expenditures:
Operating:
Personnel
Operating
Capital outlay
Capital Improvement Projects:
Personnel
Operating
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other financing sources (uses):
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 391925440
$ 219749640 $
2,983,426 $
89786
50,642
509642
89,296
389654
14,310
149410
13,600
(810)
-
2809647
2689036
(129611)
392575392
353209339
3,354,358
349019
1,3115674
1,2839230
1,2519906 319324
1,6375903
252079943
106,783 5219160
65,190
819415
81,415 -
- - 4,612 (4,612)
285,000 5899250 2769268 3129982
392995767 4,1619838 353009984 8609854
(425375) (8419499) 539374 8949873
Transfers in
35690
9,590
9,590
Transfer out
(475393)
(399863)
(39,863)
Total Other Financing Sources (Uses)
(43,703)
(309273)
(309273)
Net Change in Fund Balance
(865078)
(8719772)
23,101 894,873
Fund Balance at Beginning of Year
Fund Balance at End of Year
116
5,453,491
5,476,592
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
SURFACE TRANSPORTATION PROGRAM SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2016
117
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 905,959 $ 1,109,234 $
2039640
$ (9059594)
Expenditures:
Capital Improvement Projects:
Operating
905,959 969,266
1909148
779,118
Net Change in Fund Balance
S - S 139,968
139Tgr
7T (126,476)
Fund Balance at Beginning of Year
149191
Fund Balance at End of Yew
(699)
117
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
BJA LAW ENFORCEMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ - $ 679121 $ 50,982 $ (165139)
Expenditures:
Operating:
Operating - 67,121 50,981 16,140
Net Change in Fund Balance $ - S - 1 1
Fund Balance at Beginning of Year (846)
Fund Balance at End of Year (845)
118
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
SUPPLEMENTAL LAW GRANT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
119
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ - $ 3819579 $
381,579
$ -
Investment income
- -
242
242
Total Revenues
- 3819579
381,821
242
Expenditures:
Operating:
Operating
397,529
367,004
309525
Net Change in Fund Balance
$ - S (15,950)
14,817
305767
Fund Balance at Beginning of Year
159950
Fund Balance at End of Yew
7
119
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
HOME SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Investment income $ - $ - $ 258 $ 258
Net Change in Fund Balance d —F
Fund Balance at Beginning of Year 15,318
Fund Balance at End of Year 15,576
120
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
LIBRARY FACILITIES FEES SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2016
121
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Investment income
$ -
$ -
$ 129736
$ 12,736
Developer fees
2259000
225,000
3929923
1679923
Total Revenues
2259000
225,000
4059659
1809659
Expenditures:
Operating:
Operating
-
50,000
99000
419000
Net Change in Fund Balance
$ 225.000
$ 175,000
3969659
2219659
Fund Balance at Beginning of Year
4549198
Fund Balance at End of Year
7
121
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PUBLIC EDUCATION AND GOVERNMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Taxes
Investment income
Total Revenues
Expenditures:
Operating:
Operating
Capital outlay
Total Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 4709000 $ 5085000 $ 509,731 $ 1,731
69552 6,552 259437 18,885
4769552 5145552 5359168 2016
167,549
1445433
1489165
(3,732)
122,290
1515461
107,585
435876
2899839
2955894
2559750
40,144
$ 1869713 $ 218,658
122
2799418 $ 605760
1,404,532
$ 11683,950
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PROPOSITION C SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Other financing sources (uses):
Transfer out (2� 966,574) (4,- (2,832,184)
Net Change in Fund Balance �
Fund Balance at Beginning of Year 611,091)
Fund Balance at End of Year 75774
123
Variance with
Budgeted
Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 65160,480
$ 71658,932 $
791489098
$ (5109834)
Investment income
-
-
23,121
23,121
Total Revenues
65160,480
7,6589932
791719219
(487,713)
Expenditures:
Capital Improvement Projects:
Personnel
-
-
145566
(14,566)
Operating
391939906
618409889
397059604
39135,285
Total Expenditures
35193,906
61840,889
397209170
3512MI9
Excess (Deficiency) of Revenues
Over (Under) Expenditures
25966,574
8189043
394519049
29633,006
Other financing sources (uses):
Transfer out (2� 966,574) (4,- (2,832,184)
Net Change in Fund Balance �
Fund Balance at Beginning of Year 611,091)
Fund Balance at End of Year 75774
123
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
FEDERAL GRANTS SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Intergovernmental
Expenditures:
Capital Improvement Projects:
Personnel
Operating
Total Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Budgeted Amounts
Original Final
$ 2,8749756 $ 2,4959062 $
Variance with
Final Budget
Actual Positive/(Negative)
2,2355464 $ (2595598)
- - 189,024 (1895024)
21874,756 5,2079871 15608,086 39599,785
21874,756 5,2079871 1,7975110 3,4101761
$ - S (29712,809) 4385354 3,151,163
124
266,879
705,233
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2016
125
Variance with
Budgeted
Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 293219823
$ 213499345 $
293499773
$ 428
Investment income
-
-
689826
689826
Total Revenues
293219823
2,3499345
294189599
699254
Expenditures:
Capital Improvement Projects:
Operating
-
2,6579874
2,4649069
1939805
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,3219823
(3089529)
(459470)
2639059
Other financing sources (uses):
Transfer out
(3� 594,712)
(3209147)
3209147
Net Change in Fund Balance
(152729889)
(6285676)
(459470)
583,206
Fund Balance at Beginning of Year
4,5349392
Fund Balance at End of Year4'
,,
125
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
TOURISM MARKETING DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
169588
29552
Operating
Charges for services
$ 5409651 $ 5939151
$ 7259191
$ 1329040
Investment income
29406 2,406
129786
109380
Total Revenues
5439057 595,557
7379977
1429420
Expenditures:
Operating:
Personnel
199103
19,140
169588
29552
Operating
4999200
589,200
4609618
128,582
Capital outlay
79780
7,780
79780
-
Total Expenditures
5269083
616,120
4849986
1319134
Net Change in Fund Balance
Fund Balance at Beginning of Year
590,230
Fund Balance at End of Year
�1—
126
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Expenditures:
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
1799182
(640)
Operating
Special assessments
$ 292719466 $ 21271,466
$ 29273,751
$ 2,285
Charges for services
109000 52,260
86,655
349395
Investment income
29892 2,892
98,711
959819
Total Revenues
292849358 2,326,618
2,459,117
1321499
Expenditures:
Operating:
Personnel
1799592
178,542
1799182
(640)
Operating
3039560
335,471
231,537
1035934
Capital outlay
99720
1,602,040
4979736
151045304
Capital Improvement Projects:
Operating
1009000
100,000
18,788
819212
Total Expenditures
5929872
2,216,053
927,243
1,288,810
Excess (Deficiency) of Revenues
Over (Under) Expenditures
196919486
HMO
15531,874
194219309
Other financing sources (uses):
Transfer out
(854,638)(86K44333$)
(2,303,460)
(194345027)
Net Change in Fund Balance
�,
,
Fund Balance at Beginning of Year
6,972,741
Fund Balance at End of Year
$
6,201,155
127
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 8339464 $ 11157,265 $ 733,787 $ (4235478)
Expenditures:
Operating:
Operating
7519264
6295929
5525401
779528
Capital Outlay
1489337
3145011
2615307
529704
Capital Improvement Projects:
Operating
3009000
1409078
-
1409078
Total Expenditures
1,199,601
1,0845018
813,708
270,310
Net Change in Fund Balance
6 ,1 37)'T
15 ,1
Fund Balance at Beginning of Year
385,846
Fund Balance at End of Year
305,925
128
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PARK DEDICATION SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
129
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Investment income
$ 668
$ 668 $
1155172
$ 114,504
Developer fees
39368,959
2,8709385
392619286
390,901
Total Revenues
393699627
2,8719053
39376,458
505,405
Expenditures:
Capital Improvement Projects:
Operating
11654,950
1,654,950
2695896
15385,054
Net Change in Fund Balance
S 1,714,677
S 1,216,103
3,1069562
1,8901459
Fund Balance at Beginning of Year
492255348
Fund Balance at End of Year
793315910
129
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
HOUSING SUCCESSOR AGENCY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Investment income
Other revenue
Total Revenues
Expenditures:
Operating:
Operating
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ $ $ 29378 $ 25378
- 225061 225061
- - 245439 249439
130
- 3,700,000 45432,349 (732,349)
S (3,700,000) (4,407,910) (707,910)
4,987,157
579,247
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
TOURISM MARKETING BUREAU SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 309 2016
Revenues:
Charges for services
Investment income
Otherrevenue
Total Revenues
Expenditures:
Operating:
Operating
Capital Outlay
Total Expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 139500 $ 11,300 $ 11,180 $ (120)
630 630 423 (207)
- 25,000 41,454 169454
149130 36,930 53,057 169127
159500 40,500 23,934 169566
19430 1,430 11430
169930 41,930 25,364 169566
(29800) (5,000) 27,693 329693
131
5,001
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
GENERAL CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 309 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Other revenue $ 100,000 $ 1009000 $ 1005000 $
Expenditures:
Capital Improvement Projects:
Personnel
-
-
50,551
(505551)
Operating
25618,509
3,5569405
15696,060
198605345
Total Expenditures
2,618,509
3,5569405
15746,611
198095794
Excess (Deficiency) of Revenues
Over(Under)Expenditures
(2,5185509)
(314569405)
(19646,611)
198099794
Other financing sources (uses):
Transfers in
156585309
1,6989309
156985309
-
Net Change in Fund Balance
(8601200)
(1,758,096)
515698
198099794
Fund Balance at Beginning of Year
11790,138
Fund Balance at End of Year
$
1,841,836
132
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PUBLIC FINANCING AUTHORITY CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2016
133
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Other financing sources (uses):
Transfers in
$ 848,451 $
848,451 $
252829478
$ 154349027
Transfer out(�
848,451)
(848,451)
(29282,478)
(1,434,027)
Net Change in Fund Balance
-
$
Fund Balance at Beginning of Year
10
Fund Balance at End of Year
10
133
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2016
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Investment income $ - $ - $ 30 $ 30
Expenditures:
3
0
Debt Service:
Debt Services
391939686
1058095161
691709954
4,638,207
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(39193,686)
(10,8095161)
(6,1709924)
4,638,237
Other financing sources (uses):
Bonds issued
3193255000
315325,000
Premium on bonds issued
196729352
15672,352
Payment to refunding bond escrow agent
-
-
(3299079353)
(32,907,353)
Transfers in
39193,686
3,8245161
6,084,322
25260,161
Total Other Financing Sources (Uses)
391939686
31824,161
6,1749321
25350160
Net Change in Fund Balance
-
S (6,985,000)
39397
6,988,397
Fund Balance at Beginning of Year
Fund Balance at End of Year
134
3
0
CITY OF SANTA CLARITA, CALIFORNIA
INTERNAL SERVICE FUNDS
AS OF AND FORTHE YEAR ENDED JUNE 309 2016
The Internal Service Funds are used to account for goods or services provided by a central service
department to other City departments.
Se f Insurance — To account for the City's self-insurance program.
Computer Replacement — To account for the financing of the replacement of the City's computer equipment.
Vehicle Replacement — To account for the financing of the replacement of the City's automotive equipment.
135
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 309 2016
Noncurrent assets:
Capital assets:
Equipment, net of accumulated depreciation 166,951 9489483 1,1155434
Total Assets 3,621,717 2,314,753 5,158,728 11,095,198
Deferred Outflows of Resources:
Deferred outflows of net pension liability
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
Compensated absences
Claims and judgments
Total Current Liabilities
Noncurrent liabilities:
Net pension liability
Claims and judgments
Total Non-current Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred inflows of net pension liability
Net position:
Net investment in capital assets
Unrestricted
Total Net Position
15,728 159728
279060 251,672
Self
Computer
Vehicle
1,515,623 -
- 195159623
Insurance
Replacement
Replacement
Totals
Assets:
$ 81253,602
Current assets:
Cash and investments
$ 3,6119874
$ 290693474
$ 4,194,755
$ 9,876,103
Receivables:
Accounts
-
404
59106
55510
Interest
99843
5,123
109384
259350
Prepaid costs
-
72,801
-
725801
Total Current Assets
3,6219717
25147,802
4,2109245
999795764
Noncurrent assets:
Capital assets:
Equipment, net of accumulated depreciation 166,951 9489483 1,1155434
Total Assets 3,621,717 2,314,753 5,158,728 11,095,198
Deferred Outflows of Resources:
Deferred outflows of net pension liability
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities
Compensated absences
Claims and judgments
Total Current Liabilities
Noncurrent liabilities:
Net pension liability
Claims and judgments
Total Non-current Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred inflows of net pension liability
Net position:
Net investment in capital assets
Unrestricted
Total Net Position
15,728 159728
279060 251,672
52 2789784
4,269
- 49269
1,515,623 -
- 195159623
1,5469952 2519672
52 197989676
1139320 1139320
9349192 934,192
1,0479512 - - 150479512
2,5949464 2519672 52 298469188
11,136 119136
1669951 9489483 131159434
11031,845
1,896,130
4,2101193
7,138,168
$ 1,031,845
$ 21063,081
$ 51158,676
$ 81253,602
136
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Operating Revenues:
Charges for services
Other revenues
Total Operating Revenues
Operating Expenses:
Administration and personnel services
Services and supplies
Depreciation and expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Investment income
Gain (loss) on disposal of fixed assets
Total Net Nonoperating Revenues (Expenses)
Income (loss) before transfers
Transfers
Transfers in
Transfers out
Total Transfers
Change in net position
Net Position
Net Position at Beginning of the Year
Net Position at End of the Year
Self Computer Vehicle
Insurance Replacement Replacement Totals
$ 1,9455990 $ 6015321 $ 142,104 $ 296899415
- 155412 - 159412
1,9455990 6165733 1425104 29704,827
175,313
-
166,552
175,313
154665892
7825572
59,434 37,968
292499464
-
68,382
151,977
220,359
1,6425205
850,954
151,977
29645036
3035785
(2349221)
(9,873)
599691
59,434 355329
715789
166,552
- 25639
305083
329722
59,434 37,968
1015872
199,274
3635219 (196,253)
919999
258,965
765219
769219
(4465185)
(446,185)
(3699966) -
- (369,966)
(65747) (1969253)
91,999 (111,001)
150385592
2,2595334
5,0665677
8936403
150315845
2,0639081
511585676
892539602
137
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2016
Cash flows from operating activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net Cash Provided by Operating Activities
Cash flows from non -capital financing activities:
Cash transfers out
Cash transfers in
Net Cash Provided (Used in)
Non -capital Financing Activities
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets
Proceeds from sales of capital assets
Net Cash (Used in) Capital
and Related Financing Activities
Cash flows from investing activities:
Interest received
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and
Cash Equivalents
Cash and Cash Equivalents, Beginning of Fiscal Year
Cash and Cash Equivalents, End of Fiscal Year
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Pension Expense
(Increase)/decrease in accounts receivable
Decrease in prepaid expense
Payments related to deferred outflows for contributions subseq
Increme/(decrease) in accounts payable
Increase in claims and judgments
Increase in compensated absences
Total Adjustments
Net Cash Provided by Operating Activities
Non-cash investing, capital and financing activities
Disposal of capital assets
Self Computer Vehicle
Insurance Replacement Replacement Totals
$ 2,001,620 $ 616,329 $ 136,998 $ 21754,947
(1,084,088) (563,401) (52,636) (1,700125)
(176,969) - - (176,969)
740,563 52,928 84,362 877,853
(446,185)
(446,185)
76,219
(369,966) - - (369,966)
- (96,415) (356,458) (452,873)
- 2,639 30,083 32,722
- (93,776) (326,375) (420,151)
57,314
34,346
70,110
161,770
57,314
34,346
70,110
161,770
427,911 (6,502) (171,903) 249,506
3,183,963
2,075,976
4,366,658
9,626,597
$ 3,611,874 $
2,069,474 $
41194,755
9,876,103
(5,106) 50,120
-
67,212
- 67,212
$ 303,785 $ (234,221) $ (9,873) $ 59,691
-
68,382
151,977 220,359
11,066
-
- 11,066
55,630
(404)
(5,106) 50,120
-
67,212
- 67,212
(14,538)
-
- (14,538)
(73,096)
151,959
(52,636) 26,227
455,900
-
- 455,900
1,816 - - 1,816
436,778 287,149 94,235 818,162
$ 740,563 S 52,928 $ 84,362 $ 877,853
138
CITY OF SANTA CLARITA, CALIFORNIA
AGENCY FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2016
Agency Funds are used to account for assets held by the City as an agency for individuals.
Assessment District No. 92-2 — To account for monies held to account for debt service requirements of
Assessment District No. 92-2.
Assessment District No. 99-1 — To account for monies held to account for debt service requirements of
Assessment District No. 99-1.
Community Facilities District No. 2002-1 — To account for monies held to account for debt service requirements
for Community Facilities District No. 2002-1.
Santa Clarita Watershed and Recreation Conservancy Authority — To account for monies held for the operations
of the Watershed Authority, for which the City performs administrative functions.
Santa Clarita Public Television Authority — To account for monies held for the operations of the Santa Clarita
Public Television Authority, for with the City performs administrative functions.
139
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2016
Assets:
Cash and investments
Receivables:
Interest
Taxes
Due from external parties
Restricted assets:
Cash and investments with fiscal agents
Capital assets:
Land
Building, net of accumulated depreciation
Total Assets
Liabilities:
Accounts payable
Due to external parties
Total Liabilities
Community
Assessment Assessment Facilities
District District District
No. 92-2 No. 99-1 No. 2002-1
$ 147,790 $ 859031 $ 844,620
366 210 2,087
15815 29972 -
55,909 599723 1,6439939
$ 205,880 $ 147,936 $ 21490,646
$ $ $
205,880 147,936 2490,646
$ 2055880 $ 147,936 $ 21490,646
140
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2016
Santa Clarita
Watershed and
Santa Clarita
Recreation
Public
Conservancy
Television
Authority
Authority Totals
$ 4431 $ 4 $ 19081,876
2,663
- 4,787
3,746 39746
1,759,571
999379976 99937,976
82,776 - 82,776
$ 10,025,183 S 3,750 S 12,8731395
$ 500 $ 39750 $ 49250
1024,683 1209,145
$ 10,025,183 S 3,750 $ 12,8731395
141
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Assessment District No. 92-2
Assets
Cash and investments
Receivables:
Interest
Taxes
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities
Accounts payable
Due to external parties
Total Liabilities
Assessment District No. 99-1
Assets
Cash and investments
Receivables:
Interest
Taxes
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities
Accounts payable
Due to external parties
Total Liabilities
Balance
July 1, 2015 Additions
$ 1349597 $ 82,960 $
268 366
417 1,814
944
Balance
Deletions June 30, 2016
69,767 $ 147,790
268 366
416 1,815
944
55,909 - 555909
192,135 85,140 71,395 S 205,880
$ 965 $ 5,800 $ 6,765 $ -
191,170 79,341 64,631 205,880
$ 192,135 $ 85,141 $ 71,396 S 205,880
$ 769552 $ 76,363 $ 675884 $ 85,031
153 210 153 210
19750 2,972 15750 2,972
903 - 903 -
59,715 8 59,723
1399073 79,553 70,690147,936
$ 987 $ 4,858 $ 5,845 $ -
138,086 74,696 64,846 147,936
$ 139,073 $ 79,554 $ 70,691 S 147,936
(Continued)
142
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES (CONTINUED)
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Community Facilities District No. 2002-1
Assets
Cash and investments
Receivables:
Interest
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities
Accounts payable
Due to other governments
Due to external parties
Total Liabilities
Balance Balance
July 1, 2015 Additions Deletions June 30, 2016
$ 802,888
$ 19207,704
$ 1,1659972 $
844,620
L601
2,087
1,601
2,087
1,6431488
2,294,323
21293,872
11643,939
Due from other governments
$ 2,447,977
- 7159000
$ 3,504,114
Capital assets:
$ 3,4611445
$ 2,4901646
-
Land
9,9375976
-
$ - $ 2,185 $ 2,185 S
635 - 635 -
2,447,342 3,501,929 3,458,625 25490,646
$ 2,447,977 $ 35504,114 $ 3,461,445 $ 2,4901646
Santa Clarita Watershed Recreation and Conservancy Authori
Assets
Cash and investments
$ 175856
$ 715,043 $ 7289468
$ 4,431
Due from other governments
715,000
- 7159000
-
Capital assets:
-
Land
9,9375976
-
9,937,976
Building, net of accumulated depreciation
86,538
- 35762
82,776
Total Assets
10,757,370
7 715,0431,447,230
S 10,025,183
Liabilities
Accounts payable
Due to external parties
Total Liabilities
$ - $ 500 $ - $ 500
105757,370 714,543 19447,230 10,024,683
$ 10,757,370 $ 715,043 $ 1,447,230 S 10,0251183
(Continued)
143
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES (CONTINUED)
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 309 2016
Santa Clarita Public Television Authority
Assets
Cash and investments
Total Assets
Liabilities
Accounts payable
Due to (from) external parties
Total Liabilities
Total Agency Funds
Assets
Cash and investments
Receivables:
Interest
Taxes
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Capital assets:
Land
Building, net of accumulated depreciation
Total Assets
Liabilities
Accounts payable
Due to other governments
Due to external parties
Total Liabilities
Balance Balance
July 1, 2015 Additions Deletions June 30, 2016
$ 3 $ 149,726 $ 149,725 $ 4
$ 3 $ 149,726 S 149,725 $ 4
$ - $ 3,750 $ - $ 3,750
3 95,976 99,725 (3,746)
$ 3 $ 995726 $ 99,725 $ 4
$ 1,031,896 $ 2,231,796 $ 2,181,816 $ 1,0819876
29022 25663
2,022 2,663
29167 45786
2,166 4,787
19847 -
1,847 -
7159000 -
715,000
1,7599112 2,2945331
23293,872 1,759,571
99937,976 - 9,937,976
869538 - 3,762 82,776
$ 1395369558 $ 4,533,576 $ 5,196,723 $ 12,869,649
$ 19952 $ 17,093 $ 14,795 $ 4,250
635 - 635 -
13,533,971 41466,485 5,135,057 12,865,399
$ 13,5361558 $ 41483,578 $ 5,150,487 $ 125869,649
IEg!
STATISTICAL SECTION
CITY OF SANTA CLARITA, CALIFORNIA
STATISTICS
This part of the City of Santa Clarita's comprehensive annual financial report presents detail information as a
context for understanding what the information in the financial statements, note disclosures and required
supplementary information say about the government's overall financial health.
CONTENTS
Financial Trends
PAGE
These tables contain trend information that may assist the reader in the City's current
financial performance by placing it in historical perspective. 146-155
Revenue Capacity
These tables contain information that may help in assessing the viability of the City's
most significant revenue sources, the property and sales tax. 156-170
Debt Capacity
These tables present information that may assist the reader in analyzing the affordability
of the City's current levels of outstanding debt and the City's ability to issue
additional debt in the future. 171-177
Demographic and Economic Information
These tables offer demographic and economic indicators to help the reader understand
the environment within which the City's financial activities take place. 178-179
Operating Information
These tables contain service and infrastructure indicators that can inform one's
understanding of how the information in the City's financial statements relates to
the services the City provides and the activities it performs. 180-182
145
City of Santa Clarita
Net Position by Component "I
Last Ten Fiscal Years Ended June 30, 2016
(accrual basis of accounting)
Governmental Activities
Net investment in capital assets
Restricted for:
Capital projects
Debt service
Specific projects and programs
Total restricted
Unrestricted
Total governmental activities
net position
Business -Type Activities
Net investment in capital assets
Unrestricted
Total business -type activities
net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government
net position
FISCAL YEAR
15-16 14.15 13-14 12.13
$ 810,324,041 $ 818,8171043 $ 7991926,613 $ 738,2711282
14,292,447
87,15008
73541,304
71,643,713
54,2291493
871150,698
73,541,304
711643,713
68,5211940
981978,896 79,2111600 52,551,033 65,7061424
$ 996,453,635 $ 971,569,947 $ 924,121,359 $ 872,499,646
$ 76,6872260
$ 782495,871
$ 83,296,545
$ 762561,407
3,101,763
2,766,972
2,250,491
3,835,316
$ 791789,023 $ 81,262,843 $ 851547,036 $ 80,3961723
$ 887,011,301
$ 897,3127914
$ 8831223,158
$ 814,832,689
87,150,698
73,5411304
711643,713
68,5211940
1027080,659
81,978,572
54,801,524
69,5411740
$1,076,242,658 $1,052,832,790 $1,009,668,395 $ 952,896,369
Note:
(1) Accounting standards require that net position be reported in three components in the financial statements: net
investment in capital assets, restricted and unrestricted. Net position is considered restricted only when (a) an external
party, such as the State of California or the federal government, places a restriction on how the revenues may be
used, or (b) enabling legislation is enacted by the City.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
ME
FISCAL YEAR
11.12
10.11
09-10
08.09
07.08
06.07
$ 743,2811558 $ 7171613,095 $ 657,644,168 $ 629,621,720 $ 672,306,820 $ 661,210,117
3,2751312
46,915,965
31452,815
-
30,201,655
4,7691573
-
852895,468
41769,573
-
92,644,739
45,9931804
632,680
61,018,399
18,134,924
-
34,441,539
50,1911277
33,654,470
90,665,041
971414,312
107,6441883
52,576,463
79,141,211
671397,688
63,2181255
981512,704
66,249,901
871737,817
$ 872,614,046 $ 818,665,253 $ 811,527,464 $ 825,548,736 $ 846,201,604 $ 801,524,397
$ 732778,640
$ 75,416,868
$ 6729112725 $
661478,547
$ 63,5262242
$ 62,246,621
3,099,419
503,446
(176,196)
3,603,396
2,957,611
1,553,088
$ 76,8781059 $ 75,920,314 $ 67,735,529 $ 70,081,943 $ 66,483,853 $ 63,799,709
$ 817,060,198
$ 7931029,963
$ 725555,893
$ 696,100,267
$ 735,833,062
$ 723,456,738
502191,277
33,654,470
90,665,041
971414,312
107,644,883
52,576,463
82,240,630
67,901,134
63,042,059
102,116,100
69,207,512
89,290,905
$ 949,492,105 $ 894,585,567 $ 879,262,993 $ 895,630,679 $ 912,685,457 $ 865,324,106
147
City of Santa Clarita
Changes in Net Position''
Last Ten Fiscal Years Ended June 30, 2016
(accrual basis of accounting)
Expenses
Governmental Activities
General government
Public safety
Public works
Parks, recreation and community service
Community development
Unallocated infrastructure depreciation
Interest on long-term debt
Total governmental activities expenses
Business -Type Activities
Transit
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental Activities
Charges for services:
FISCAL YEAR
15-16 14-15 13-14 12-13
$ 39,155,006
$ 46,224,813
$ 41,807,284
$ 35,921,943
23,778,931
22,235,368
229187,434
19,940,098
30,467,720
36,103,144
26,183,862
28,6517261
231350,273
221619,337
221550,301
213809,820
101505,906
5,720,237
6,1932101
73214,293
18,342,933
18,072,657
17,561,539
15,1637864
2,194,181
1,827,094
11872,832
11992,574
1471794,950
1521802,650
138,356,353
130,693,853
28,127,407
281062,668
261819,161
25,653,753
28,127,407
28,062,668
26,819,161
25,653,753
$175,922,357 $180,865,318 $165,175,514 $156,347,606
General government
$ 21,977,246
$ 261783,616
$ 31,970,148
$ 24,323,027
Public safety
11162,551
1,605,059
1,847,403
21284,334
Public works
171339,507
13,056,586
12,463,046
93943,014
Parks, recreation and community service
81142,336
41525,662
41390,686
41371,888
Community development
11857,018
1,774,482
1,961,243
1,611,184
Operating grants and contributions
71705,545
12,561,608
19,421,199
91061,950
Capital grants and contributions
23,602,526
301107,231
221530,841
33,585,797
Total governmental activities program revenue:
811786,729
901414,244
94,584,566
851181,194
Business -Type Activities
Charges for services:
City implemented the GASB
34 reporting
module for the fiscal year ended
June 30, 2003.
Transit
7,546,433
6,779,579
7,587,497
61863,086
Operating grants and contributions
91153,499
87228,348
81984,127
81579,209
Capital grants and contributions
31504,305
11423,440
101804,747
81513,238
Total business -type activities program revenue:
20,204,237
16,431,367
271376,371
23,955,533
Total primary government revenues $101,990,966 $106,845,611 $121,960,937 $109,136,727
Note:
(1) The
City implemented the GASB
34 reporting
module for the fiscal year ended
June 30, 2003.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
UM
FISCAL YEAR
11.12 10.11 09-10 08.09 07-08 06-07
$ 337664,470
$ 47,048,462
$ 322116,335
$ 30,094,380
$ 27,488,731
$ 26,0291070
277391,075
21,280,904
172912,704
17,489,870
16,482,917
14,3981408
307623,718
25,799,166
2627582527
48,514,645
30,5497888
19,273,980
19,282,538
113281,552
273835,763
321747,618
21,8171251
20,5731077
5,896,640
113547,650
1338313341
9,761,681
9,257,881
8,9851449
16,844,238
16,392,901
15,5452626
141405,047
13,128,617
122920,310
31391,058
41650,566
5,4762918
51786,174
3,127,998
22087,949
137,093,737
138,001,201
13924772214
158,799,415
121,853,283
104,2681243
24,930,635
24,127,043
2323482708
22,299,379
21,506,317
18,315,106
241930,635
24,127,043
23,348,708
22,299,379
21,506,317
18,315,106
$162,024,372 $162,128,244 $162,825,922 $181,098,794 $143,359,600 $122,583,349
$ 13,719,117
$ 398,181
$ 396,651
$ 621,624
$ 2,7377355
$ 302,075
2,0791109
23305,608
2,194,038
11898,022
2,291,100
2,1311060
7,2091724
43929,602
3,162,052
260,524
355,817
3,5751546
41156,386
41220,977
3,9562933
31849,699
3,875,539
32895,422
51152,484
12,059,509
15,9371913
35,138,334
26,341,684
202182,722
16,032,433
14,090,686
1622242269
9,931,109
22,600,793
26,6411145
28,6161388
311325,725
152249,634
38,785576
39,003,536
24,770,306
76,965,641
69,330,288
5721212490
901484,888
97,205,824
812498,276
6,616,778
6,573,879
3,181,614 37299,263 312167239
5,827,778
77385,264
6,9137534
10,260,579 1303,177 111876,720
12,616,641
5,0411992
13,0437418
- - 617,421
750,200
19,044,034
26,530,831
13,442,193 161952,440 15,710,380
19,194,619
$ 96,009,675 $ 95,861,119 $ 70,563,683 $107,437,328 $112,916,204 $100,692,895
(Continued)
149
City of Santa Clarita
Changes in Net Position''''
Last Ten Fiscal Years Ended June 30, 2016
(accrual basis of accounting)
Net Revenues (expenses):
Governmental activities
Business -type activities
Total net revenues (expenses)
General Revenue and Other Changes in Net Position
Governmental activities
FISCAL YEAR
15-16 14-15 13.14 12-13
(66,008,221)
$ (62,388,406)
$(43,771,787) $
(45,512,659)
(7,923,170)
(11,631,301)
557,210
(1,698,220)
73,931,391
$ 32,057,358
73,931,391
40,072,597
74,019,707
43,214,577)
32,341,369
Franchise taxes
8,392,789
8,512,818
71796,070
7,141,953
Taxes:
41142,959
21240,594
21090,322
(82,870)
Sales taxes
$ 37,807,385
$ 34,355,412
$ 33,480,522
$ 32,057,358
Property taxes
40,072,597
38,556,890
35,652,080
32,341,369
Franchise taxes
8,392,789
8,512,818
71796,070
7,141,953
Real property transfer taxes
1,383,743
11169,780
947,470
7062180
Transient occupancy taxes
3,813,437
3,124,904
21781,527
2,556,774
Unrestricted revenue in lieu of motor vehicle taxes
128,783
85,703
86,531
91,062
Unrestricted revenue in lieu of sales taxes
-
-
-
-
Grants and contributions not restricted
to specific programs
-
-
-
-
Unrestricted investment earnings
41142,959
21240,594
21090,322
(82,870)
Miscellaneous revenue
1,080,771
678,937
781,986
310,676
Gain on sale of capital asset
459,709
273410
18,174
-
Transfers
(6,390,264)
(713292516)
(51692,032)
(5,187,224)
Reversal of Allowance for Notes to
RDA Successor Agency
121633,832
Capital Contributions
15,780,230
Total governmental activities
90,891,909
109,836,994
77,942,650
69,935,278
Business -type activities
Unrestricted investment earnings
Miscellaneous revenue
Transfers
Total business -type activities
Total primary government
Extraordinary Item
Gain from dissolution of former redevelopment
agency of the City of Santa Clarita
Change in Net Position
Governmental activities
Business -type activities
Total primary government
59,086 17,592 4,791 29,660
6,390,264
7,329,516
5,692,032
5,187,224
6,449,350
7,347,108
5,696,823
5,216,884
97,34 ,259
$117,184,102
83,639,473
75,152,162
43,164,395
40,424,896
$ $ $
$ 24,883,688
$ 47,448,588
$ 34,170,863
$ 24,422,619
(1,473,820)
(41284,193)
61254,033
3,518,664
23,409,868
43,164,395
40,424,896
$ 27,941, 83
Note:
(1) The City implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
150
FISCAL YEAR
11-12 10-11 09-10 08-09 07-08 06-07
$ (60,128,096) $ (68,670,913) $ (82,355,724) $ (68,314,527)
(5,886,601) 21403,788 (9,906,515) (5,346,939)
$ (24,647,459)
(5,795,937)
$ (22,769,967)
879,513
26,820,068
-
-
66,267,125
92,262,239
73,661,466
(30,443,396)
6,028,903
6,248,912
590,474
3,082,456
41564,687
41816,638
836,824
$ 28,828,139 $ 27,701,757 $ 24,511,238 $ 27,751,506 $ 29,076,388 $ 23,790,825
34,818,426
24,996,219
25,126,278
26,820,068
24,482,930
27,891,202
6,920,244
6,697,241
6,407,923
6,704,074
6,028,903
6,248,912
590,474
3,082,456
41564,687
41816,638
836,824
1,073,774
2,380,547
21106,521
21050,857
2,260,708
2,433,651
1,804,923
3,316,058
3,221,498
3,083,353
8,490,865
8,156,017
87,883
812,475
896,708
1,015,413
1,252,281
1,862,901
1,509,201
31756,112
4,871,133
6,020,940
4,566,884
4,970,193
5,372,890
9,148,163
4,161,677
3,193,421
-
-
(6,844,199)
(5,808,300)
(71477,547)
(8,006,128)
(8,431,120)
441,376
73,663,605 75,808,702 68,334,452 73,659,993 68,737,606 76,240,123
147 (27,303)
82,554
-
48,961
26,367
- -
-
938,901
-
-
199 5.808.300
7.477,547
8.006.128
8,431.120
(441,376
$ 40,413,284
$ 53,948,793
957,745
$ 71137,789
8,184,785
$ (14,021,272)
(2,346,414)
$ 5,345,466 $ 44,090,147
3,598,090 2,684,144
$ 53,470,156
464,504
54,906,538
15,322,574
(16,367,686)
8,943,556
46,774,291
53,934,660
151
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2016
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All Other Governmental Funds
Reserved
Unreserved:
Special revenue funds
Debt service fund
Capital projects fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
FISCAL YEAR
15-16 14-15 13-14 12-13
113108,252 11,0243338 11,5193143 1139103059
79,3673084
55,336,807
513718,096
47,106,536
50,669,580
50,141,486
45,654,640
35,320,706
$ 141,144,916
$ 116,502,631
$ 108,891,879
$ 94,337,301
223,648
87,150,698
14,000
1,881,728
(6,975,198)
$ 82,294,876
$ $ $
1,455,067
85,763,293
14,000
1,843,822
(8,633,303)
$ 80,442,879
606,996
84,268,720
612,829
3,412,127
(9,300,647)
$ 79,600,025
FUND BALANCES
Fiscal Year Ended June 30. 2016
670,612
68,957,999
716,826
4,466,367
(10,665,597)
$ 64,146,207
■ All Other Governmental
Funds
370% ■ General Fund
63%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
152
FISCAL YEAR
11-12 10.11 09-10 08-09 07-08 06.07
$ -
$ -
$ 19,546,015
$ 32,617,139
$ 34,9202547
$ 34,699,034
-
-
58,211,508
41,674,470
31,1532879
28,5001824
18,902,350
23,845,861
33,725,531
34,502,270
38,050,255
41592,332
66,257
12,356,339
309,078
572,781
50,664,338
465915,238
-
-
-
-
(56,718,519)
(72,692,440)
-
-
-
$ 69,942,023
$ 83,690,219
$ 77,757,523
$ 74,291,609
$ 66,074,426
$ 63,199,858
$ 22,358,741
$ 16,963,194
$ 62,981,221
$ 81,117,198 $
102,527,186
$ 46,262,108
$ $ $ 51,195,454 $ 70,667,494 $ 51,972,970 $ 48,303,588
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
$102.53
$80.44 $82.29
$64. 79.6
$62.
$4626 1
16.96 22.36
06-07
07-08
2,1091198
(71048,095)
28,377,796
3,8277570
12-13
13-14
(24,048,962)
(17,004,471)
(15,8732835)
(10,4617382)
33,725,531
34,502,270
38,050,255
41592,332
28,885,983
28,813,152
46,915,965
57,205,072
32275,312
31637,410
(56,718,519)
(72,692,440)
-
-
-
-
$ 22,358,741
$ 16,963,194
$ 62,981,221
$ 81,117,198 $
102,527,186
$ 46,262,108
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
$102.53
$80.44 $82.29
$64. 79.6
$62.
$4626 1
16.96 22.36
06-07
07-08
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
Fiscal
Year
153
City of Santa Clarita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2016
(modified accrual basis of accounting)
Revenues:
Taxes
Licenses and permits
Developer fees
Investment income
Intergovernmental
Fines and forfeitures
Service charges
Other revenues
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt service:
Principal
Interest, professional services and fiscal charges
Redemption of district credits
Total Expenditures
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses)
Revenue bonds issued/issuance premium
Proceeds of long-term debt
Escrow payment, costs of bonds issuance and others
Proceeds from capital lease
Transfers in
Transfers out
Issuance of district credits
Total Other Financing Sources (Uses)
Extraordinary Item:
Dissolution of Santa Clarita Redevelopment Agency
FISCAL YEAR
15-16 14-15 13-14 12-13
$ 91,598,734 $ 85,789,556 $ 80,285,660 $ 73,972,006
7,283,898
5,567,280
5,366,972
4,246,957
6,272,799
10,764,554
2,600,997
15,828,388
3,937,618
2,026,507
1,911,491
1,702,006
31,380,753
31,953,692
34,355,734
27,452,216
973,753
1,261,752
1,661,157
2,114,166
36,828,067
37,738,754
42,156,582
36,311,324
1,789,724
511,117
5,943,608
332,146
180,065,346 175,613,212 174,282,201 161,959,209
35,969,981
43,196,168
36,294,205
35,433,288
23,777,171
22,188,641
22,137,338
19,894,859
37,937,050
36,082,625
24,385,865
27,968,407
21,327,662
21,007,651
20,498,108
19,824,550
10,673,993
5,883,441
6,185,263
7,252,424
10,562,953
23,224,180
36,580,589
23,837,533
2,852,140
1,992,479
1,837,174
11750,538
4,539,815
1,850,703
1,885,546
2,039,144
-
5,105,402
-
14,368,419
147,640,765
160,531,290
149,804,088
152,369,162
32,424,581
15,081,922
24,478,113
91590,047
32,997,352 - -
(32,907,353) - -
11,940,563
7,850,640
9,757,447
9,069,495
(17,960,861)
(14,478,956)
(15,524,498)
(14,256,719)
balances -
-
11,297,334
12,270,335
(5,930,299)
(6,628,316)
5,530,283
7,083,111
Net change in fund balances 26,494,282 8,453,606 30,008,396 16,673,158
Fund
balances -
Beginning of Year
196,945,510
188,491,904
158,483,508
141,810,350
Fund
balances -
End of Year
Debt service as percentage of noncapital expenditures 5.72% 2.80% 3.26% 2.95%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
154
FISCAL YEAR
11.12 10.11 09-10 08-09 07-08 06-07
$ 73,625,713 $ 72,474,882 $ 80,714,829 $ 87,659,599 $ 88,088,786 $ 70,5767755
41097,709
31675,424
41093,250
3,6972218
5,256,748
47203,933
7,181,986
282,776
33053,363
1537633070
22,2903808
617472767
2,739,794
31798,498
51485,925
10,749,728
8,287,441
71926,763
281375,142
19,780,700
33,881,145
282882,884
24,247,611
37,300,213
1,674,085
11891,500
119367318
1,759,371
2,1212570
1,918,954
287145,012
23,6087272
10,8127521
8,375,771
9,931,041
13,463,673
6,425,792
716857141
71234,923
5,077,400
3,368,879
41356,961
1521265,233 133,197,193 147,212,274 161,9651041 163,592,884 1467495,019
509816,449
4272137597
27,951,510
27,250,056
25,965,196
23,411,750
257412,420
21,2307594
17,862,129
17,4391295
16,342,979
14,347,833
20,753,607
341210,327
20,5941575
42,9371168
25,977,763
19,511,097
19,523,584
21,853,319
20,0481430
20,126,412
20,156,343
181943,146
5,923,872
11,575,365
102849,942
730953386
7,583,236
910512652
27,403,439
21,311,885
46,1831268
41,826,511
44,906,802
571926,955
21338,787
21246,218
2,611,372
2,0722341
1,927,198
21374,870
31743,134
4,796,695
5,411,152
5,279,549
4,632,979
2,298,974
1551915,292
159,438,000
151,5121378
164,026,718
147,492,496
1471866,277
(3,650,059)
(261240,807)
(42300,104)
(22061,677)
16,1002388
(1,371,258)
8,317,116 - - - - -
(8,352,649) (403085,331) (142277,651) (133192,805) 58,5523586 103110,390
100,653,413 140,738,744 155,016,395 16801,612 110,049,026 997351576
4.40% 5.96% 6.84% 5.54% 5.16% 4.27%
t55
-
13,894,752
54,235,000
(226,682)
252,068
-
16,538,674
50,869,852
18,9535115
12,150,426
43,112,541
271468,089
(291810,448)
(641714,376)
(28,930,662)
(23,2811554)
(54,668,661)
(29,881,193)
13,019,706
(131844,524)
(9,977,547)
11,131,128)
42,452,198
11,481,648
8,317,116 - - - - -
(8,352,649) (403085,331) (142277,651) (133192,805) 58,5523586 103110,390
100,653,413 140,738,744 155,016,395 16801,612 110,049,026 997351576
4.40% 5.96% 6.84% 5.54% 5.16% 4.27%
t55
City of Santa Clarita
Assessed Values (') and Actual Values of Taxable Property
Last Ten Fiscal Years
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2016
■ PERSONAL PROPERTY
2.44%
■ LAND
48.83%
■IMPROVEMENTS
56.73%
Note:
(1) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
(2) Direct Rate includes Redevelopment Agency areas.
Source: HdL Conan 8 Cone, County of Los Angeles, Auditor -Controller Office, Combined Tax Rolls 2015-16
156
STATE ASSESSED
LOCALLY ASSESSED
SECURED
(UTILITY)
SECURED
Fiscal
IMPROVE-
PERSONAL
IMPROVE-
PERSONAL
OTHER
Year
LAND
MENTS
PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
2006-07
2,156,981
8,312,011
197,013
10,666,005
8,556,980,792
9,766,997,767
104,509,489
(253,946,364)
18,174,521,684
2007-08
1,515,305
6,727,866
-
8,243,171
9,899,005,161
10,912,016,138
98,107,607
(214,371,451)
20,694,757,455
2008-09
1,515,305
330,866
-
1,846,171
10,259,253,083
11,386,047,165
95,440,322
(203,174,372)
21,537,566,198
2009-10
1,750,395
2,264,780
-
4,015,175
9,416,163,697
11,115,441,327
105,296,475
(323,630,904)
20,313,270,595
2010-11
1,750,395
2,264,780
-
4,015,175
9,160,567,699
11,280,024,994
112,335,544
(330,372,395)
20,222,555,842
2011-12
1,431,971
2,264,780
-
3,695,751
9,097,382,703
11,485,773,659
107,089,927
(372,583,638)
20,317,662,651
2012-13
1,431,971
2,264,780
-
3,696,751
8,882,930,332
11,516,988,299
111,202,431
(400,045,608)
20,111,075,454
2013-14
1,431,971
2,264,780
-
3,696,751
9,989,545,816
13,726,755,146
107,166,367
(412,668,046)
23,410,799,283
2014-15
1,431,971
2,264,780
-
3,696,751
10,820,572,961
14,749,259,449
103,844,310
(453,562,893)
25,220,113,827
2015-16
1,431,971
2,264,780
-
3,696,751
11,358,919,366
15,476,133,167
109,544,613
(471,097,603)
26,473,499,543
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2016
■ PERSONAL PROPERTY
2.44%
■ LAND
48.83%
■IMPROVEMENTS
56.73%
Note:
(1) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
(2) Direct Rate includes Redevelopment Agency areas.
Source: HdL Conan 8 Cone, County of Los Angeles, Auditor -Controller Office, Combined Tax Rolls 2015-16
156
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
06417 0748 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Fiscal Year
157
LOCALLY ASSESSED
25,000
TOTALS
20,000
e
15,000
f
HOME -
UNSECURED
BEFORE
TAXABLE
%
TOTAL
OWNER
IMPROVE-
PERSONAL
OTHER
OTHER
ASSESSED
]NCR.
DIRECT
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
EXEMPTIONS
VALUE
(DECR.)
RATE (2)
TAX RELIEF
255,417,833
482,574,856
(7,299,585)
730,693,104
19,177,126,742
18,915,880,793
11.67%
0.06948%
206,464,204
264,708,723
558,804,055
(32,916,267)
790,596,511
21,740,884,855
21,493,597,137
13.63%
0.07531%
220,192,568
293,355,474
611,636,166
(33,951,806)
871,039,834
22,647,578,381
22,410,452,203
4.27%
0.07268%
223,396,120
359,543,253
600,420,921
(15,127,698)
944,836,476
21,600,880,848
21,262,122,246
-1.08%
0.07432%
224,731,598
346,874,191
553,829,644
(13,331,377)
887,372,458
21,457,647,247
21,113,942,935
-0.70%
0.07392%
223,277,279
314,286,482
548,430,090
(15,137,342)
847,579,230
21,556,659,612
21,168,938,632
0.26%
0.07291%
220,496,294
349,415,601
534,947,944
(13,693,787)
870,669,758
21,399,181,358
20,985,441,963
-0.87%
0.07183%
216,163,460
329,350,845
541,533,568
(15,907,716)
854,976,697
24,698,048,493
24,269,472,731
15.65%
0.09170%
236,577,388
339,544,656
561,740,289
(13,152,888)
888,132,057
26,578,658,416
26,111,942,635
7.59%
0.09163%
232,799,644
299,024,341
569,926,540
(15,283,837)
853,667,044
27,817,244,778
27,330,863,338
4.67%
0.09169%
230,402,082
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
06417 0748 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Fiscal Year
157
30,000
25,000
20,000
e
15,000
f
e
10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
06417 0748 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Fiscal Year
157
City of Santa Clarita
Redevelopment Agency ("
Assessed Values (`t and Actual Values of Taxable Property
Last Ten Fiscal Years
(1) The Redevelopment Agency of the City was established on November 28, 1989, pursuant to the Slate of California and Safety
Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base Year was calculated in
fiscal year 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment agencies were dissolved by
the Stale of California effective February 1, 2012.
(2) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
Source: County of Los Angeles, Auditor-Controller/Tax Division
158
STATE ASSESSED
LOCALLY ASSESSED
SECURED (UTILITY)
SECURED
FISCAL
IMPROVE -PERSONAL
IMPROVE-
PERSONAL
OTHER
YEAR
LAND
MENTS
PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
2006-07
50,158
37,657
21,558
109,373
295,792,467
185,299,271
2,545,972
(5,085,710)
478,552,000
2007-08
-
-
-
-
335,974,647
205,086,767
2,346,546
(4,630,171)
538,777,789
2008-09
-
-
-
-
348,100,511
217,393,278
2,064,527
(3,754,719)
563,803,597
2009-10
-
-
-
-
343,043,150
214,695,279
1,775,246
(3,779,814)
555,733,861
2010-11
-
-
-
-
319,869,014
213,093,295
1,850,279
(3,196,475)
531,616,113
2011.12
-
-
-
-
322,803,745
214,686,716
1,933,165
(7,016,751)
532,406,875
2012.13
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2013.14
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2014.15
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2015-16
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(1) The Redevelopment Agency of the City was established on November 28, 1989, pursuant to the Slate of California and Safety
Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base Year was calculated in
fiscal year 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment agencies were dissolved by
the Stale of California effective February 1, 2012.
(2) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
Source: County of Los Angeles, Auditor-Controller/Tax Division
158
159
LOCALLY ASSESSED
TOTALS
HOME -
UNSECURED
TOTALS
TAXABLE
OWNER
IMPROVE-
PERSONAL
OTHER
BEFORE
ASSESSED
VALUE
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
BASE YEAR
BASE YEAR
VALUE
GROWTH
TAX RELIEF
26,593,269
25,569,962
(16,300)
52,146,931
530,808,304
(266,351,517)
264,456,787
54,429,376
1,971,567
28,204,577
48,299,529
(217,300)
76,286,806
615,064,595
(266,351,517)
348,713,078
84,256,291
2,034,432
39,771,667
48,437,084
(77,000)
88,131,751
651,935,348
(266,351,517)
385,583,831
36,870,753
2,002,848
34,102,838
46,361,945
(84,500)
80,380,283
636,114,144
(266,351,517)
369,762,627
(15,821,204)
1,921,661
21,240,432
62,307,206
(84,500)
83,463,138
615,079,251
(266,351,517)
348,727,734
(21,034,893)
1,871,456
34,353,633
46,665,422
(102,000)
80,917,055
613,323,930
(266,351,517)
346,972,413
(1,755,321)
1,865,922
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
/ N/A
N/A
N/A
N/A
N/A
159
City of Santa Clarita
Assessed Values—Taxable Property
Last Ten Fiscal Years
CATEGORY
15-16
14-15
FISCAL YEAR
13-14
12-13
11-12
Residential
$ 20,809,579,112
$ 19,755,522,402
$ 18,138,258,224
$ 14,971,655,728
$ 15,212,586,674
Commercial
3,059,958,633
2,952,772,231
2,847,760,176
2,794,405,083
2,748,247,727
Industrial
1,799,119,742
1,642,718,866
1,561,091,316
1,413,623,056
1,455,126,754
Irrigated
2,936,120
2,834,466
2,827,311
2,796,388
3,016,072
Dry farm
-
-
-
-
-
Recreational
104,324,505
101,870,300
100,138,918
104,981,278
106,506,146
Institutional
162,056,819
142,862,940
136,824,169
132,119,758
125,982,002
Government
220,358
216,042
215,066
210,850
206,717
Miscellaneous
348,240
341,421
1,017,342
864,299
847,359
Vacant land
419,750,992
507,997,067
509,125,263
565,117,297
533,608,937
SBE Nonunitary
3,696,751
3,696,751
3,696,751
3,696,751
3,696,751
Possessory Int.
115,205,002
112,978,072
113,541,478
125,301,717
131,534,263
Unsecured
853,667,044
888,132,057
854,976,697
870,669,758
847,579,230
Unknown
20
20
20
-
-
TOTALS: $ 27,330,863,338 $ 26,111,942,635 $ 24,269,472,731 $ 20,985,441,963 $ 21,168,938,632
25,000
20,000
15,000
w
c
0 10,000
c
5,000
ASSESSED VALUE -TAXABLE PROPERTY
Last Ten Fiscal Years
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Fiscal Year
160
I♦Re:mentlal
scommercdal
otodustnal
vacant land
GAH others
Notes: 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 activity or at the time it is sold to a new owner.
At that point, the property is reassessed based upon the added value of the 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 limitation just mentioned.
161
FISCAL YEAR
10-11
09-10
08-09
07-08
06-07
$ 15,239,936,469
$ 15,094,074,637
$ 16,493,025,013
$ 16,165,919,271
$ 13,962,275,972
2,820,296,027
2,729,669,423
2,541,908,257
2,081,576,763
1,836,340,797
1,463,696,151
1,451,053,867
1,420,480,569
1,293,080,539
1,148,469,489
3,004,749
3,630,743
3,559,558
3,489,768
29,374,674
-
-
-
-
49,088,244
121,791,852
121,511,353
119,459,165
114,868,032
90,435,287
127,363,481
125,868,861
136,418,924
130,907,129
94,705,673
205,173
206,850
201,629
197,676
194,922
841,034
843,038
-
810,312
795,449
308,820,538
636,182,476
664,562,300
664,792,342
656,660,955
4,015,175
3,573,175
1,073,171
8,243,171
10,666,005
136,599,828
150,671,347
158,723,783
239,115,623
222,654,730
887,372,458
944,836,476
871,039,834
790,596,511
730,697,804
-
-
-
-
83,525,492
$ 21,113,942,935
$ 21,262,122,246
$ 22,410,452,203
$ 21,493,597,137
$ 18,915,885,493
Notes: 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 activity or at the time it is sold to a new owner.
At that point, the property is reassessed based upon the added value of the 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 limitation just mentioned.
161
City of Santa Clarita
Assessed Values—Use Category Summary
Fiscal Year 2015-16
CATEGORY
PARCELS
ASSESSED
VALUE
PERCENT
EXEMPTIONS
NET
TAXABLE
VALUE
PERCENT
Residential
55,644
$ 20,8611002,565
75.0%
$
512423,453
$ 2028091579,112
76.14%
Commercial
912
3,11517622703
11.2%
$
552804,070
320591958,633
11.20%
Industrial
725
1,802,878,508
6.5%
$
3,758,766
1,799,119,742
6.58%
Irrigated
6
27936,120
0.0%
$
-
27936,120
0.01%
Recreational
34
1071194,763
0.4%
$
2,870,258
1041324,505
0.38%
Institutional
94
515,971,722
1.9%
$
353,914,903
1623056,819
0.59%
Government
5
221,627
0.0%
$
1,269
2202358
0.00%
Miscellaneous
6
348,240
0.0%
$
-
348,240
0.00%
Vacant land
31721
4211215,373
1.5%
$
1,464,381
419,750,992
1.54%
SBE Nonunitary
(13)
3,6962751
0.0%
$
-
3,6962751
0.01%
Possessory Int.
(21202)
1171065,505
0.4%
$
1,860,503
115,2052002
0.42%
Unsecured
(61260)
8681950,881
3.1%
$
152283,837
8531667,044
3.12%
Unknown
25
20
0.0%
$
-
20
0.00%
TOTALS: 52,697 $ 27,817,244,778 100.00% $ 486,381,440 $ 27,330,863,338 100.00%
ASSESSED VALUE by USE CATEGORY
Fiscal Year 2015-16
■ All Others
Industrial 7.32%
6.46%
O Commercial
11.20%
Residential
74.99%
NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2015-16
Industrial O All Others
6.58°/ 6.08°
O Commer ial
11.20°
Residential
76.14%
Source: HdL Coren & Cone, Los Angeles County Assessor 2015/16 Combined Tax Rolls.
162
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal
Year
GENERAL
LOS
ANGELES
COUNTY
CASTAIC
LAKE
WATER
AGENCY
COUNTY
SCHOOL SANITATION
DISTRICTS DISTRICTS
COUNTY
FLOOD
CONTROL
TOTAL
2006-07
1.000000
0.000660
0.040000
0.060360
-
0.000050
1.101070
2007-08
1.000000
-
0.040000
0.074050
-
-
1.114050
2008-09
1.000000
-
0.040000
0.077110
-
-
1.117110
2009-10
1.000000
-
0.060750
0.089815
-
-
1.150565
2010-11
1.000000
-
0.070600
0.086830
-
-
1.157430
2011-12
1.000000
-
0.070600
0.091457
-
-
1.162057
2012-13
1.000000
-
0.070600
0.112835
-
-
1.183435
2013-14
1.000000
-
0.070600
0.120330
-
-
1.190930
2014-15
1.000000
-
0.070600
0.118570
-
-
1.189170
2015-16
1.000000
-
0.070600
0.116070
-
-
1.186670
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2015-16
1.200000
1.000000 GENERAL
0.800000
0.600000
0.400000
SCHOOL
0.200000 CASTAIC LAKE DISTRICTS
WATER AGENCY SANITATION
DISTRICTS
0.000000
LA COUNTY FLOOD
Source: HdL Coren & Cone, Los Angeles County Assessor 2015-16 Tax Rate Table
163
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies
City General Fund Direct Rates
RDA Incremental Rate
Total Direct Rate
City Share
Prop. 13
Notes: General fund tax rates are
of 1% Total City
plus applicable
representative and based upon the direct
Roll Year per Prop. 13 Debt Rates Rates
voter -approved debt
and overlapping rates for the largest
2015-16 0.122750 0.000000 0.122750
0.00000%
0.09169%
Agency
2014.15
City of Santa Clarita Tax District 1 (249.01)
0.05730
Notes: General fund tax rates are
Castaic Lake Water Agency (302.01)
0.05780
representative and based upon the direct
Children's Institutional Tuition Fund (400.21)
0.00283
and overlapping rates for the largest
Consolidated Fire Protection District of LA Co. (007.30)
0.16340
General Fund tax rates area (TRA) by net
County School Service Fund Newhall (581.06)
0.00801
taxable value. Total Direct Rate is the
County School Service Hart William S. Hart (757.06)
0.00034
weighted average of all individual direct
County School Services (400.15)
0.00143
rates applied by the government preparing
Development Center Handicapped Minor Newhall (581.07)
0.00088
the statistical section information.
Educational Augmentation Fund Impound (400.01)
0.13380
The percentages presented in the columns
Educational Revenue Augmentation Fund (ERAF) (400.00)
0.08260
above do not sum across rows. In 1978
Greater LA Co. Vector Control (061.80)
0.00032
California voters passed Proposition 13,
Santa Clarita Library (249.56)
0.02360
which set the property tax at a 1.00% fixed
LA County Fire - Ffw (007.31)
0.00323
amount. This 1.00% is shared by all the
LA County Flood Control Improvement District (030.10)
0.00176
taxing agencies for which the subject
LA County Flood Control Maintenance (030.70)
0.00996
property resides within. In addition to the
LA County General (001.05)
0.14050
1.00% fixed amount, property owners are
LA County Accum Cap Outlay (001.20)
0.00009
charged taxes as a percentage of assessed
Newhall School District (581.01)
0.08350
property values for the payment of any
Santa Clarita Community College (814.04)
0.03740
voter -approved bonds.
Santa Clarita Street Light Maintenance #2 (249.32)
0.02250
Santa Clarita Valley Sanitation Dist. LA Co.
0.02500
Valencia Areawide Landscape T1A S.C.
0.01924
William S. Hart Elementary School Fund (757.07)
0.04290
William S. Hart Union High (757.02)
0.08150
Total Prop. 13 Rate:
f3muil-
CastaicLake Water Agency (302.01) 0.07060
Newhall Elementary School District Debt Services 1999 Ser. B (581.53) 0.01920
Newhall Elementary School District Debt Services 1999 Ser. A (561.52) 0.01961
Santa Clarita Community College Debt Services 2001 Ser. 2005 (814.54) 0.00730
Santa Clarita Community College Debt Services 2006 Ser. 2007 (814.55) 0.00694
Santa Clarita Community College Debt Services 2005 Refunding Bonds (81 0.00787
Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52) 0.00451
Santa Clarita Community College Debt Services 2006 Ser. 2012 0.00151
William S. Hart Un.Hsd Debt Services (757.51) 0.01263
William S. Hart Un.Hsd Debt Services 2008 Ser. B 0.01009
William S. Hart Un.Hsd Debt Services 2008 Ser. C 0.01010
William S. Hart Unified Debt Services 2001 Ser. B (757.52) 0.00811
William S. Hart Unified Debt Services 2008 Ser. A (757.53) 0.00821
Total Tax Rate
Source: HdL Coren & Cone, Los Angeles County Assessor 2015/16 Tax Rate Table
0 ME
City of Santa Clarlta
Principal Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
Valencia Town Center Venture LP
Packard Humanities Institute
Saugus Colony Limited
PFI Valencia LLC
Park Sierra Properties
EQR Valencia LLC
EQR The Oaks LLC
Valencia Biomedical Park LLC
ARC SLSTCCA001 LLC
RREEF America Reit II Corp
Total
All Others
Total Assessed Valuation
17 $
FISCAL YEAR 2015-16
1.35 %
1
PERCENT of
Number
TOTAL
TOTAL CITY
of
ASSESSED
ASSESSED
OWNERITAXPAYER Parcels
VALUE
VALUE
Valencia Town Center Venture LP
Packard Humanities Institute
Saugus Colony Limited
PFI Valencia LLC
Park Sierra Properties
EQR Valencia LLC
EQR The Oaks LLC
Valencia Biomedical Park LLC
ARC SLSTCCA001 LLC
RREEF America Reit II Corp
Total
All Others
Total Assessed Valuation
17 $
367,936,798
1.35 %
1
208,435,089
0.76
20
144,010,414
0.53
9
138,800,017
0.51
15
135,206,123
0.49
218
101,364,875
0.37
28
99,293,291
0.36
5
98,603,931
0.36
4
96,000,000
0.35
2
80,968,282
0.30
319 1,470,618,820 5.38 %
25,860,244,518 94.62
$ 27,330,863,338 100.00 %
Valencia Town Center Venture
Prado Town Center West LLC
Thomas Properties Group LLC
Casden Santa Clarita LLC
Walmart Real Estate Business
Lerner Homes of California Inc
EQR Valencia LLC
EQR Town Center LLC
Palmer Saugus Limited
Newhall Land and Farming Cc
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
165
30 $
FISCAL YEAR 2005-06
1.44 %
8
PERCENT of
Number
TOTAL
TOTAL CITY
of
ASSESSED
ASSESSED
OWNERITAXPAYER Parcels
VALUE
VALUE
Valencia Town Center Venture
Prado Town Center West LLC
Thomas Properties Group LLC
Casden Santa Clarita LLC
Walmart Real Estate Business
Lerner Homes of California Inc
EQR Valencia LLC
EQR Town Center LLC
Palmer Saugus Limited
Newhall Land and Farming Cc
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
165
30 $
272,336,100
1.44 %
8
79,879,058
0.42
34
78,813,675
0.42
25
76,499,959
0.40
5
63,157,630
0.33
3
60,676,231
0.32
217
55,970,730
0.30
3
51,689,867
0.27
22
50,048,598
0.26
131
49,778,590
0.26
478 838,850,438 4.43 %
18,077,035,055 95.57
$ 18,915,885,493 100.00 %
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
FISCAL
YEAR
TAXES
LEVIED
COLLECTIONS
PERCENT
COLLECTIONS
COLLECTIONS
IN SUBSEQUENT
YEARS
TOTAL
COLLECTIONS
TO DATE
PERCENT
COLLECTIONS
TO DATE
2006-07
12,804,630
12,3172614
96.2%
21689
12,3201303
96.22%
2007-08
14,483,825
13,7542184
95.0%
32,577
13,786,761
95.19%
2008-09
11,925,285
111361,604
95.3%
16,722
11,378,326
95.41%
2009-10
14,202,626
13,711,940
96.5%
-
13,7111940
96.55%
2010-11
14,172,030
13,8292640
97.6%
50,605
13,880,246
97.94%
2011-12
14,299,999
13,9992770
97.9%
49,862
14,049,633
98.25%
2012-13
18,6341850
181297,746
98.2%
-
18,297,746
98.19%
2013-14
21,446,963
21,128,332
98.5%
-
21,128,332
98.51%
2014-15
23,1311317
22,7952838
98.5%
-
22,795,838
98.55%
2015-16
24,304,887
231957,604
98.6%
-
23,957,604
98.57%
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
FISCALYEAR
ELEVIES MCOLLECTIONS DELINQUENT AMOUNT
NOTES:
Article XIII -A of the Constitution of the State of California, adopted by the electorate in June 1978,
precludes the City from a local property tax levy. All general-purpose property taxes are levied by
the County and allocated to other governmental entities on a predetermined formula.
The above figures include secured property taxes only.
Prior to the implementation of GASB 44 in FY 2006, collections in subsequent years were not required
to be reported by tax year. Beginning in FY 2007, collections in subsequent years are included.
Source: County of Los Angeles, Department of Auditor -Controller
.P
City of Santa Clarita
Successor Agency
Top Property Owners Based on Net Values
Fiscal Year 2015-16
Top Ten Total 44 $ 100,632,695 18.06% 6 $40,935,679 58.87% $ 141,568,374 22.59%
Agency Total
Incremental Net AV Total
Source: HdL Coren & Cone
557,399,484
$ 311,224,922 32.33%
167
69,533,688 626,933,172
$51,602,036 79.33% $362,826,958 39.02%
Secured
Unsecured
Combined
Owner
Parcels
Value
°n
Net AV
Parcels Values `o
Net AV
Valu
Net AV
prima ry Use
1
Time Warner Cable
5 $40,927,946 58.86%
$ 40,927,946
6.53%
Unsecured
2
Casden Santa Clarita LLC
24 $
20,800,000
3.73%
20,800,000
3.32%
Vacant
(Pending Appeals On Parcels)
3
Saugus Station LLC
6
17,986,112
3.23%
17,986,112
2.87%
Industrial
4
Peter and Barbara Coeler, at. al.
4
11,768,482
2.11%
1 7,733 0.01%
11,776,215
1.88%
Residential
(Pending Appeals On Parcels)
-
5
Lyons Properties Limited
1
10,121,667
1.82%
10,121,667
1.61%
Commercial
(Pending Appeals On Parcels)
6
Telfair Corporation
2
8,709,178
1.56%
8,709,178
1.39%
Commercial
(Pending Appeals On Parcels)
7
David Weiswasser Trust
2
8,123,149
1.46%
8,123,149
1.30%
Residential
8
25805 San Fernando LLC
1
8,082,109
1.45%
8,082,109
1.29%
Commercial
9
RFT Sprouts LLC, at. al.
3
7,736,730
1.39%
7,736,730
1.23%
Residential
10
23801 San Fernando Rd Landco LLC
1
7,305,268
1.31%
7,305,268
1.17%
Institutional
Top Ten Total 44 $ 100,632,695 18.06% 6 $40,935,679 58.87% $ 141,568,374 22.59%
Agency Total
Incremental Net AV Total
Source: HdL Coren & Cone
557,399,484
$ 311,224,922 32.33%
167
69,533,688 626,933,172
$51,602,036 79.33% $362,826,958 39.02%
City of Santa Clarita
Successor Agency
Project Area Assessment Appeals Summary and Tax Collection History
Fiscal Years 2009-10 Through 2015-16
Project Area Assessment Appeals Summary—FY 2015-16
Estimated
No. of No. of Estimated No. Reduction on
Total No. of Resolved Successful Average No. & Value of of Appeals Pending Appeals
Appeals Appeals Appeals Reduction Appeals Pending Allowed Allowed
171 96 80 66% 75/$30370733194 80 $ 13575093040
Tax Collection History
For Fiscal Years 2009-10 Through 2015-16
Current Year
Current Year Prior Year Collection Total Collection
Year Tax Levy Collection Collection Total Percentage Percentage
2009-10
Ledgers
$ 4,068,572
$ 3,885,719
$ 42,260 $
33927,979
96%
97%
2010-11
376183835
217443263
(2047741)
235397523
76%
70%
2011-12(l)
377623457
2,9343904
218,094
331527998
78%
84%
2012-13
(2)
374853808
227863791
2757290
330627081
80%
88%
2013-14
(2)
375263463
228283495
815,124
336437619
80%
103%
2014-15
(2)
3,8363835
321853967
158,652
33344,619
83%
87%
2015-16
(2)
3,5793829
3,4303748
518,292
337047259
96%
103%
Source: Los Angeles County Auditor/Controller, Disbursement/Tax Division "CRA Remittance Advice" from
Fiscal Years 1997-98 through 2010-11, and for Fiscal Year 2011-12, November 2011 through
January 2012.
(1) Sources:
Ledgers
and 2011-12 Revenue & Collection from Year -End
Adjsuted
Gross TI Collection by CRA
reports
from Los Angeles County Auditor -Controller.
(2) Sources: Ledgers and special reports from Los Angeles County Auditor -Controller commencing
February 2012 pursuant to AB X 1 26.
Eri3
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2015-16
2861-058-081
Valencia
Town
Center Venture
LP
LAND
STRUCTURE
TOTAL
14.34
ASSESSOR'S
Valencia
Town
Center Venture
LP
ASSESSED
ASSESSED
ASSESSED
TAXABLE
PARCEL NUMBER
PROPERTY OWNER
Town
VALUES ($)
VALUES ($)
VALUES ($)
ACREAGE
2861-058-071
Valencia
Town
Center Venture
LP
$ 1,217,797
$ 185,567
$ 1,403,364
0.84
2861-058-072
Valencia
Town
Center Venture
LP
3,375,538
17,548,725
20,924,263
4.81
2861-058-073
Valencia
Town
Center Venture
LP
26,675,721
3,287,195
29,962,916
15.68
2861-058-076
Valencia
Town
Center Venture
LP
849,774
84,398
934,172
1.18
2861-058-077
Valencia
Town
Center Venture
LP
4,588,409
392,469
4,980,878
6.70
2861-058-081
Valencia
Town
Center Venture
LP
15,517,013
164,076,179
179,593,192
14.34
2861-058-084
Valencia
Town
Center Venture
LP
3,201,075
91278,489
12,479,564
2.05
2861-058-085
Valencia
Town
Center Venture
LP
417,528
208,763
626,291
0.33
Totals: $ 55,842,855 $ 195,061,785 $ 2507904,640 45.93
�'
MAX TAX RATE APPLIED
CLASS ($) MAX TAX RATE ($) CHARGE ($)
1
$ 34,931
$ 29,485
$ 25,944
$ 21,899
1
34,931
168,019
25,944
124,790
1
34,931
547,792
25,944
406,852
1
34,931
41,359
25,944
30,718
1
34,931
234,039
25,944
173,824
34,931.26 &
1&2
235,291.52
500,979
25,947
372,084
1
343931
71,609
25,944
53,185
1
342931
11,457
25,944
81510
$ 1,191,862
170
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
NOTES:
(1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of
Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond
proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita
Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance
the design, acquisition, improvement or construction of land, the City Hall Building and certain road
improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease
payments to be made by the City to the Authority equal to the principal and interest due on the
revenue bonds. At this point in time, the Agency is not active.
-The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation
Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and
the liability for those certificates was removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to
advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were
considered defeased and the liability for those certificates was removed from the long-term liability.
-On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding
2005 Series certificates. As a result, the 2005 Series were considered defeased and the liability for those certificates was removed from
the long-term liability.
-In November 2001, the Santa Clarita Public Financing Authority issued $3,200,000 in Certificates of
Participation for the acquisition of parkland. In 2006 the COP Series 2001 were considered defeased and the liability for those certificates was removed
from the general long-term debt.
(2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue
Bonds (Golden Valley Road), Series 2007 for the acquisition of right-of-way.
- On June 22, 2016, the Santa Clarita Public Financing Authority issued $10,320,000 in Series 2016A Lease Revenue Bonds (Golden Valley Road) to
advance refund $11,260,000 of oustanding 2007 Series bonds. As a result, the 2007 Series were considered defeased and the liability
for those bonds was removed from the general long-term debt.
-On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 20168 Lease Revenue Refunding Bonds (OSPD)
to advance refund $15,070,000 of outstanding 2007 Series certificates.
(3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15,525,000 in Certificates of Participation
for the acquisition of open space and parkland.
-On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD)
to advance refund $15,070,000 of outstanding 2007 Series certificates. As a result, the 2007 Series were considered defeased and the liability
for those bonds was removed from the general long-term debt.
(4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non -Housing Tax Allocation
Bonds and $8,850,000 in Low/Mod Housing Tax Allocations Bonds to fund certain redevelopment projects within the Newhall
Redevelopment Project area. Upon the dissolution of redevelopment agencies in the State of California effective
February 1, 2012, the bonds were transferred to the RDA Successor Agency.
(5) On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the
outstanding 2005 Series certificates.
Sources: City of Santa Clarha, Administrative Services Department- Finance Division
171
GOVERNMENTAL ACTIVITIES
FISCAL
CERTIFICATES
PRIVATE
TAX ALLOCATION
CAPITAL
YEAR
OF PARTICIPATION (1) (3)
LOANS
BONDS (2)
PLACEMENT LEASE (5)
BONDS
(4)
LEASES
TOTAL
7006-07
16,760,000
-
4,328,207
13,785,000
-
-
-
36,401
34,909,608
2007-08
15,790,000
15,525,000
3,593,734
13,575,000
-
29,860,000
8,850,000
23,676
87,217,410
2008-09
14,790,000
15,525,000
2,823,907
13,330,000
-
29,860,000
8,850,000
11,370
85,190,277
2009-10
13,760,000
15,525,000
2,017,793
13,075,000
-
29,460,000
8,730,000
1,624
82,569,417
2010-11
12,700,000
15,525,000
1,413,786
12,805,000
-
29,040,000
8,605,000
-
80,088,786
2011-12
11,610,000
15,490,000
1,040,000
12,525,000
-
-
-
242,417
40,907,417
2012-13
10,480,549
15,379,349
810,000
12,316,280
-
-
-
201,880
39,188,058
2013-14
9,323,138
15,291,374
580,000
12,002,622
-
-
-
154,705
37,351,839
2014-15
8,128,138
15,175,988
300,000
11,673,964
-
-
-
217,615
35,495,705
2015-16
-
-
200,000
26,012,352
6,328,411
-
-
138,877
32,679,640
NOTES:
(1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of
Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond
proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita
Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance
the design, acquisition, improvement or construction of land, the City Hall Building and certain road
improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease
payments to be made by the City to the Authority equal to the principal and interest due on the
revenue bonds. At this point in time, the Agency is not active.
-The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation
Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and
the liability for those certificates was removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to
advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were
considered defeased and the liability for those certificates was removed from the long-term liability.
-On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding
2005 Series certificates. As a result, the 2005 Series were considered defeased and the liability for those certificates was removed from
the long-term liability.
-In November 2001, the Santa Clarita Public Financing Authority issued $3,200,000 in Certificates of
Participation for the acquisition of parkland. In 2006 the COP Series 2001 were considered defeased and the liability for those certificates was removed
from the general long-term debt.
(2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue
Bonds (Golden Valley Road), Series 2007 for the acquisition of right-of-way.
- On June 22, 2016, the Santa Clarita Public Financing Authority issued $10,320,000 in Series 2016A Lease Revenue Bonds (Golden Valley Road) to
advance refund $11,260,000 of oustanding 2007 Series bonds. As a result, the 2007 Series were considered defeased and the liability
for those bonds was removed from the general long-term debt.
-On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 20168 Lease Revenue Refunding Bonds (OSPD)
to advance refund $15,070,000 of outstanding 2007 Series certificates.
(3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15,525,000 in Certificates of Participation
for the acquisition of open space and parkland.
-On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD)
to advance refund $15,070,000 of outstanding 2007 Series certificates. As a result, the 2007 Series were considered defeased and the liability
for those bonds was removed from the general long-term debt.
(4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non -Housing Tax Allocation
Bonds and $8,850,000 in Low/Mod Housing Tax Allocations Bonds to fund certain redevelopment projects within the Newhall
Redevelopment Project area. Upon the dissolution of redevelopment agencies in the State of California effective
February 1, 2012, the bonds were transferred to the RDA Successor Agency.
(5) On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the
outstanding 2005 Series certificates.
Sources: City of Santa Clarha, Administrative Services Department- Finance Division
171
600
500
400
300
200
100
0
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
$466
$ 00
$464
E45
$231 $191
$206 9
$166
$149
06.07
07-08
PERCENTAGE
09-10
10-11
BUSINESS -TYPE ACTIVITIES
OF
13-14
OUTSTANDING
15.16
TOTAL
TAXABLE
DEBT
DEBT TO
LEASE
Fiscal l em'
PRIMARY
ASSESSED
PER
PERSONAL
PAYABLE
TOTAL
GOVERNMENT
VALUE
CAPITA
INCOME
1,236,869
1,236,869
36,146,477
0.19%
206
3%
870,149
870,149
88,087,559
0.41%
500
6%
485,304
485,304
85,675,581
0.38%
484
5%
248,304
248,304
82,817,721
0.39%
466
5%
-
-
80,088,786
0.38%
454
N/A
-
-
40,907,417
0.19%
231
N/A
-
-
39,188,058
0.19%
191
N/A
-
-
37,351,839
0.15%
179
N/A
-
-
35,495,705
0.14%
166
N/A
-
-
32,679,640
0.12%
149
N/A
600
500
400
300
200
100
0
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
$466
$ 00
$464
E45
$231 $191
$206 9
$166
$149
06.07
07-08
08.09
09-10
10-11
1142
12-13
13-14
14-15
15.16
Fiscal l em'
172
City of Santa Clarita
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
$238 $233
$255 $246 $186 $175
223
$174 $164
$118
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Fiscal Year
Source: (1) State of California, Finance Department
173
PERCENTAGE
OUTSTANDING
GENERAL
BONDED DEBT
OF
TAXABLE
DEBT
FISCAL
REVENUE
CERTIFICATES OF
ASSESSED
PER
YEAR
POPULATION (1)
BONDS
PARTICIPATION
TOTAL
VALUE
CAPITA
2006-07
177,158
13,8935228
16,760,000
30,653,228
0.16%
174
2007-08
177,045
13,5755000
31,315,000
44,890,000
0.21%
255
2008-09
177,150
13,3305000
30,315,000
43,645,000
0.19%
246
2009-10
177,641
13,0755000
29,285,000
42,360,000
0.20%
238
2010-11
176,971
12,8055000
28,225,000
41,030,000
0.19%
233
2011-12
177,445
12,5255000
27,100,000
39,625,000
0.19%
223
2012-13
2047951
12,3165280
25,859,898
38,176,178
0.18%
186
2013-14
209,130
12,0025622
24,614,512
36,617,134
0.15%
175
2014-15
213,231
11,6735964
23,304,126
34,978,090
0.13%
164
2015-16
219,611
26,0125352
-
265012,352
0.10%
118
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
$238 $233
$255 $246 $186 $175
223
$174 $164
$118
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Fiscal Year
Source: (1) State of California, Finance Department
173
City of Santa Clarita
Direct and Overlapping Tax and Assessment Debt
June 30, 2016
2015-16 Assessed Valuation: $27,330,863,338
(Net of Redevelopment Agency Incremental Value of $362.826.958)
2015-16 Population:
219,611
ercent
City's Share
Total Debt
Applicable
of Debt
06/30/2016
To City "'
06130/2016
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Los Angeles County Flood Control District
$ 12,630,000
2.188%
$
276,344
Santa Clarita Community College District
197,467,365
70.938%
$
140,079,400
William S. Hart Union High School District
367,875,232
70.927%
$
260,922,866
William S. Hart Union High School District - Community Facilities District No. 87-1
225,000
100.000%
$
225,000
William S. Hart Union High School District- Community Facilities District No. 90-1
420,000
100.000%
$
420,000
Los Angeles County Community College and Unified School Districts
14,128,615,000
0.000%
$
1,413
Castaic Union School District
13,752,053
27.463%
$
3,776,726
Newhall School District
14,605,000
60.152%
$
8,785,200
Newhall School District School Facilities Improvement District No. 2011-1
55,992,354
61.317%
$
34,332,832
Saugus Union School District
32,576,462
83.211%
$
27,107,200
Saugus Union School District School Facilities Improvement District No. 2011-1
20,000,000
84.359%
$
16,871,800
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area Nc
7,600,000
100.000%
$
7,600,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area Nc
8,345,000
100.000%
$
8,345,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area Nc
16,445,000
100.000%
$
16,445,000
Saugus -Hart School District Community Facilities District No. 2000-1
11,015,000
100.000%
$
11,015,000
Sulphur Springs Union School District
44,057,061
92.153%
$
40,599,903
Sulphur Springs Union School District Community Facilities District No. 2002-1
33,875,000
100.000%
$
33,875,000
City of Santa Clarita Open Space and Parkland Assessment District
14,838,697
100.000%
$
14,838,697
City of Santa Clarita Community Facilities District No. 2002-1
15,420,000
100.000%
$
15,420,000
City of Santa Clarita 1915 Act Bonds
760,000
100.000%
$
760,000
Los Angeles County Regional Park and Open Space Assessment District
50,610,000
2.145%
$
1,085,585
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
642,782,965
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
$2,029,010,694
2.145%
$
43,522,279
Los Angeles County Superintendent of Schools - Certificates of Participation
7,944,360
2.145%
$
170,407
Los Angeles County Sanitation District No. 32 Authority
16,692,558
72.726%
$
12,139,830
Santa Clarita Community College District - Certificates of Participation
16,615,000
70.938%
$
11,786,349
William S. Hart Union High School District - Certificates of Participation
6,000,000
70.927%
$
4,255,620
Castaic Union School District - Certificates of Participation
3,770,000
27.463%
$
1,035,355
Saugus Union School District - Certificates of Participation
25,620,000
83.211%
$
21,318,658
Sulphur Springs Union School District - Certificates of Participation
24,272,492
92.153%
$
22,367,830
Los Angeles Unified School District - Certificates of Participation
273,805,000
0.00001%
$
27
City of Santa Clarita Obligations
17,840,944
100.000%
$
17,840,944
Total Gross Direct and Overlapping General Fund Debt
134,437,298
Less: Los Angeles County General Fund Obligations supported by landfill revenues
98,806
Total Net Direct and Overlapping General Fund Debt
134,338,492
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
34,595,000
100.000%
34,595,000
Total Direct Debt
$
32,679,640
Gross Total Overlapping Debt
793,974,320
Net Total Overlapping Debt
$
793,875,514
GROSS COMBINED TOTAL DEBT
$
811,815,263
NET COMBINED TOTAL DEBT
$
811,716,457
(1) Percentage of overlapping debt applicable to the city is estimated using taxable assed property value. Applicable percentages were estimates
determining the portion of the overlapping district's assessed value that is within the boundaries
of the city
divided by the district's total taxable
(2) Includes $200,000 CDBG loan, $11,173,655 Series 2016A GVR Lease Revenue Bonds,
$6,328,411 Private
Placement Lease,
and $138,877
capital lease obligations.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital
lease obligations.
Ratios to 2015-16 Assessed Valuation:
Direct Debt ($14,838,697)...........................................................................0.05%
Total Overlapping Tax and Assessment Debt. .................... .............. ........... 2.35 %
Total Direct Dept ($32,679,640)...................................................................0.12%
Gross Combined Total Debt.. ......................................................................... 2.97 %
Net Combined Total Debt..............................................................................2.97 %
Ratios to Redevelopment SuccessorAgency Incremental Valuation ($362.826.958):
Total Overlapping Tax Increment Debt. ............ ................................................ 9.53 %
Source: MuniServices, LLC
174
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 1,024,907,375 979,197,849 910,105,227 786,954,074 793,835,199
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin $ 1,024,907,375 $ 979,197,849 $ 910,105,227 $ 786,954,074 $ 793,835,199
Total debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0%
Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation
perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local
governments located within the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
175
FISCAL YEAR
15-16
14.15
13-14
12-13
11-12
Assessed valuation
$27,330,863,338
$26,111,942,635
$24,269,472,731
$20,985,441,963
$21,168,938,632
Conversion percentage
25%
25%
25%
25%
25%
Adjusted assessed valuation
6,832,715,835
6,527,985,659
6,067,368,183
5,246,360,491
5,292,234,658
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 1,024,907,375 979,197,849 910,105,227 786,954,074 793,835,199
Total net debt applicable to limit:
General obligation bonds - - - - -
Legal debt margin $ 1,024,907,375 $ 979,197,849 $ 910,105,227 $ 786,954,074 $ 793,835,199
Total debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0%
Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation
perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local
governments located within the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
175
FISCAL YEAR
10.11
09.10
08-09
07-08
06.07
849,284,189
$
815,283,182
$
719,142253
$ 21,457,647,247
$ 21,600,880,848
$ 22,647,578,381
$ 21,740,884,855
$ 19,177,126,742
25%
25%
25%
25%
25%
0%
0%
5,364,411,812
5,400,220,212
5,661,894,595
5,435,221,214
4,794,281,686
15%
15%
15%
15%
15%
804,661,772 810,033,032 849,284,189 815,283,182 719,142,253
$
804,661,772
$
810,033,032
$
849,284,189
$
815,283,182
$
719,142253
600
C_
400
200
0%
0%
0%
0%
0%
0
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
LEGAL DEBT MARGIN
Last Ten Fiscal Years
Fiscal Year
176
1,200
1,000
800
Ul
C
600
C_
400
200
0
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
LEGAL DEBT MARGIN
Last Ten Fiscal Years
Fiscal Year
176
City of Santa Clarita
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
TRANSIT
REVENUES (1)
LESS
OPERATING
EXPENSES (2)
TRANSIT
NET
AVAILABLE
REVENUES
DEBT
Principal
SERVICE
Interest
COVERAGE
2006-07
19,4681288
195033,240
435,048
349,449
69,388
2.15%
2007-08
24,888,921
225204,777
2,6841144
366,720
60,298
1.72%
2008-09
26,612,418
235014,324
3,5981094
384,846
42,172
1.60%
2009-10
21,179,438
235525,855
(2,3461417)
236,999
23,149
1.23%
2010-11
32,5071582
245270,533
8,2371048
248,304
11,844
0.80%
2011-12
26,1331433
255175,688
957,745
-
-
-
2012-13
29,4201486
255901,822
3,5181664
-
-
-
2013-14
33,2981907
275044,874
6,254,034
-
-
-
2014-15
24,0081186
285292,380
(4,2841194)
-
-
-
2015-16
26,8531481
285327,301
(1,473,820)
-
-
-
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
177
City of Santa Clarita
Demographic and Economic Statistics
Last Ten Calendar Years
YEAR
CITY OF
SANTACLARITA
POPULATION (1)
AVERAGE
ANNUAL
PERCENTAGE
INCREASE
LOS ANGELES
COUNTY
POPULATION (1)
AVERAGE
ANNUAL
PERCENTAGE
INCREASE
PER
CAPITA
PERSONAL
INCOME (2)
TOTAL
PERSONAL
INCOME (2)
UNEMPLOYMENT
RATE (3)
2007
177,158
5.29%
9,780,808
-0.18%
39,066
402,107,608
2.70%
2008
177,045
0.22%
9,785,474
0.05%
44,727
567,707,000
4.70%
2009
177,150
0.43%
9,801,096
0.16%
43,119
550,832,000
7.70%
2010
177,641
0.54%
9,822,121
0.21%
43,999
565,365,000
7.70%
2011
176,971
0.15%
9,818,605
-0.04%
44,423
575,044,998
7.60%
2012
177,445
0.64%
9,884,632
0.67%
46,337
604,831,837
6.90%
2013
204,951
15.50%
9,958,091
0.74%
48,425
635,891,798
6.60%
2014
209,130
2.04%
10,041,797
0.84%
50,751
673,073,539
4.70%
2015
213,231
1.96%
10,136,559
0.94%
N/A
N/A
6.40%
2016
219,611
2.99%
10,241,335
1.03%
N/A
N/A
4.70%
17.00%
15.00%
13.00%
11.00%
9.00%
7.00%
5.00%
3.00%
1.00%
-1.00%
POPULATION INCREASE
Last Ten Fiscal Years
2007 2006 2009 2010 2071 2012 2013 2014 2015 2016
YEAR
Sources: (1) State of California, Finance Department, as of 1/1/2016
(2) U.S. Department of Commerce, Bureau of Economic Analysis (BEA)
Personal Income and Unemployment rates are for the regional area, Los Angeles. The City's
related information is not available. Information lags two years.
(3) State of California, Department of Employment Development (EDD), July 22, 2016
178
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
* As of March 2016
NOTE: (1)Non-governmental employers
Source: 2016 Santa Clarita Valley- Real Estate and Economic Outlook, 2007 CAFR
179
2016*
2007
PERCENT
PERCENT
NUMBER
of
NUMBER
of
of
TOTAL
of
TOTAL
EMPLOYER
EMPLOYEESEMPLOYMENT
EMPLOYER
EMPLOYEESEMPLOYMENT
Six Flags Magic Mountain
3,200
11.15%
Mountain
21165
9.18%
Princess Cruises
1,948
6.79%
Princess Cruises
21100
8.90%
Henry Mayo Newhall
Henry Mayo Newhall
Memorial Hospital
1,822
6.35%
Memorial Hospital
11133
4.80%
Quest Diagnostics
(formerly Speciality
913
3.18%
HR Textron
845
3.58%
The Master's College
760
2.65%
The Master's College
748
3.17%
Boston Scientific
750
2.61%
Speciality Laboratories
725
3.07%
Woodward HRT (formerly
HR Textron)
725
2.53%
Arvato Services
586
2.48%
Aerospace Dynamics
705
2.46%
Cal Arts
500
2.12%
Advanced Bionics
700
2.44%
Aerospace Dynamics
420
1.78%
Cal Arts
690
2.40%
Fanfare Media Works
407
1.73%
Largest firms
12,213
42.55%
Largest firms
91629
40.81%
All others
16,492
57.45%
All others
13,963
59.19%
Grand total
28,705
100.00%
Grand total
239592
100.00%
* As of March 2016
NOTE: (1)Non-governmental employers
Source: 2016 Santa Clarita Valley- Real Estate and Economic Outlook, 2007 CAFR
179
City of Santa Clarita
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
FISCAL YEAR
Function 15-16 14-15 13-14 12-13 11-12 10-11 09-10 08-09 07-08 06-07
General government
91.00
87.60
87.60
89.60
84.35
85.75
89.75
95.75
91.75
86.00
Public safety (1)
-
-
-
-
-
-
-
-
-
-
Public works
131.50
125.00
122.00
129.00
126.00
127.00
128.00
135.50
136.50
133.50
Community developmen
37.00
41.00
41.00
32.00
30.50
33.00
33.00
36.00
35.00
33.00
Parks and Recreation
112.15
111.15
109.15
108.15
105.90
106.50
110.50
111.50
110.50
108.00
Transit
12.00
11.00
11.00
11.00
13.00
12.00
12.00
14.00
11.00
11.00
Totals 383.65 375.75 370.75 369.75 359.75 364.25 373.25 392.75 384.75 371.50
395.00
390.00
385.00
380.00
375.00
370.00
365.00
360.00
355.00
350.00
345.00
340.00
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
06.07 07.08 08.09 09-10 10-11 11-12 12.13 13.14 14.15 15.16
Fiscal Year
(1) Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
City of Santa Clarita
Operating Indicators by Function
Last Tan Fiscal Years
FISCAL YEAR
Function
15-16
14.15
13-14
1213
1142
10-11
09-10
0809
07-08
06417
Police:
Parking citations issued"'
9,035
4,765
4,786
5,726
5,521
6,577
5,114
4,126
5,257
4,587
Parking revenue collected
$ 379,384
$ 320,682
$ 323,040
$ 341,607
$ 335,663
$ 323,408
$ 238,478
$ 235,634
$ 288,076
$ 334,927
Public works:
Street resurfacing (miles)
15.5
80.0
20.9
18.0
24.0
24.0
33.8
14.0
15.4
15.4
Parks and Recreation:
Number of recreation classes
2,918
2,189
2,557
2,548
2,106
2,080
2,447
2,284
2,393
2,535
Number of facility rentals (times)
13,390
19,018
14,604
13,000
11,042
10,754
10,239
9,801
9,767
19,645
Transit:
Number of customers served
3,167,021
3,422,015
3,540,969
3,661,302
3,612,060
3,724,490
3,922,052
4,210,842
3,821,299
3,733,299
NOTE: (1) The City contracts the Los Angeles County Sheriff Department for its police services.
The number of citations issued and money collected are within the City's boundaries.
(2) Number of customers sewed includes those outside of the City boundaries.
Source: City of Santa Clarim, Administrative Services Department- Finance Division
181
City of Santa Clarita
Capital Assets Statistics by Function
Last Ten Fiscal Years
FISCAL YEAR
Function
15-16
14-15
13-14
12-13
11-12
10-11
09-10
08-09
07-08
06-07
Public works:
Streets (miles)
516
497
496
496
496
496
496
496
496
496
Street lights"'
17,843
17,843
17,843
17,843
15,081
14,963
14,939
14,739
14,429
14,000
Traffic signals (City Jurisdiction)
180
180
177
177
171
170
166
172
176
166
Traffic signals (Joint Jurisdiction)
5
5
5
5
6
1
6
5
4
4
Parks and recreation:
Number of parks
32
32
29
29
24
23
20
20
20
19
Community centers
2
2
2
1
1
1
1
1
1
1
Transit:
Stations
4
4
4
4
4
4
4
4
4
4
(1) All of the above referred streetlights are/were owned and maintained by Edison Company. The Highway Safety Lights (HSL)
are the streetlights attached to traffic signals (817) and those are City owned and maintained through a contract with
the County. The City took over the streetlights from the County in 1998 and the City Engineering division established the
inventory reports since 2001.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
182
23920 Valencia Boulevard
Suite 300
Santa Clarita, California 91355
santa-clarita.com
CITY OF SANTA CLARITA, CALIFORNIA
Independent Accountants' Report on Applying
Agreed -Upon Procedures Related to the
Article XIII -B Appropriations Limit Calculation
For the Fiscal Year Ended June 30, 2016
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES
RELATED TO THE ARTICLE XHI-B APPROPRIATIONS LIMIT CALCULATION
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
We have performed the procedures enumerated below to the Appropriations Limit Calculation of the City of
Santa Clarita, California (City) for the fiscal year ended June 30, 2016. These procedures, which were agreed to
by the City, were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIII -B
of the California Constitution. The City's management is responsible for the Appropriations Limit calculation.
This agreed upon procedures engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants.
The sufficiency of the procedures is solely the responsibility of those parties specified in this report.
Consequently, we make no representation regarding the sufficiency of the procedures described below either for
the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained completed worksheets setting forth the calculations necessary to establish the City's
appropriation limit and compared the 2015-2016 limit and annual adjustment factors included in those
worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council.
We also compared the population and inflation options included in the aforementioned worksheets to
those that were selected by a recorded vote of the City Council. Refer to attachment A for completed
worksheets.
Findings: No exceptions were noted as a result of our procedures.
2. We added last year's limit to the total adjustments and compared the resulting amount to this year's limit.
Findings: No exceptions were noted as a result of our procedures.
3. We compared the current year information to the worksheets described in No. 1 above.
Findings: No exceptions were noted as result of our procedures.
4. We compared the prior year appropriations limit to the prior year appropriations limit adopted by the City
for the prior year.
Findings: No exceptions were noted as result of our procedures.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466:4431
We were not engaged to, and did not conduct an audit, the objective of which would be the expression of an
opinion on the Appropriations Limit worksheets. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our attention that would have been reported to
you. No procedures have been performed with respect to the determination of the appropriation limit for the base
year, as defined by Article XIII -13 of the California Constitution.
This report is intended solely for the use of the City Council and management of the City of Santa Clarita and is
not intended to be and should not be used by anyone other than these specified parties.
Rancho Cucamonga, California
December 21, 2016
CITY OF SANTA CLARITA, CALIFORNIA
ATTACHMENT A — GANN CALCULATIONS
JUNE 30, 2016
A. Appropriations Limit FY 2014-2015
B. Calculation Factors:
1 Population Increase %
2 Inflation Increase %
3 Total Adjustment %
C. Annual Adjustment Increase
D. Other Adjustments:
1 Loss Responsbility (- )
2 Transfer to Private (- )
3 Transfer for Fees (- )
4 Assumed Responsbility ( + )
E. Total Adjustments
F. Appropriations Limit FY 2015-2016
Amount Source
$ 318,178,790 Prior year appropriations limit
adopted by the City
1.01910
1.03820
1.05803
State Department of Finance
State Department of Finance
(13.1 x B.2)
18,4635794 [(B.3-1)xA)]
1894639794 (C+D)
$ 33696429584 (A+E)
3
CITY OF SANTA CLARITA, CALIFORNIA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 309 2016
CITY OF SANTA CLARITA, CALIFORNIA
SINGLE AUDIT REPORT
FOR THE FISCAL YEAR ENDED JUNE 309 2016
TABLE OF CONTENTS
PAGE
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 1
Independent Auditors' Report on Compliance for Each Major Federal Program; Report on
Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal
Awards Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Notes to Schedule of Expenditures of Federal Awards 8
Schedule of Findings and Questioned Costs
I. Summary of Auditors' Results 9
II. Financial Statement Findings 10
III. Federal Award Findings and Questioned Costs 13
Schedule of Prior Year Audit Findings and Recommendations 17
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
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 Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, 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 of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita,
California (City), as of and for the year ended June 30, 2016, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements and have issued our report thereon dated
December 21, 2016. Our report included an emphasis of matter regarding the City's adoption of Governmental
Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application and GASB
Statement No. 82, Pension Issues — An Amendment of GASB Statements No. 67, No. 68, and No. 73, effective
July 1, 2015.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (internal control) to determine the 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 City's internal control. Accordingly, we do not express an opinion on the
effectiveness of the City'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 and therefore, material weaknesses or significant deficiencies may exist that were not
identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that
we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the
accompanying schedule of findings and questioned costs, as items 2016-001, 2016-002, and 2016-003, that we
consider to be significant deficiencies.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City'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 determination of
financial statement amounts. 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.
Management's Response to Findings
The City's responses to the findings identified in our audit are described in the accompanying schedule of
findings and questioned costs. The City's responses were not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on the responses.
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 entity'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 entity's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
J V4 itZ, FG
Rancho Cucamonga, California
December 21, 2016
E
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on Compliance for Each Major Federal Program
We have audited the City of Santa Clarita, California's
(City) compliance with the types of compliance
requirements
described in the OMB Compliance Supplement
that could have a direct
and material effect on each
of the City's
major federal programs for the year ended June
30, 2016. The City's
major federal programs are
identified in
the summary of auditors' results section of the
accompanying schedule
of findings and questioned
costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its
federal awards applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on
our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America; the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those
standards and the Uniform Guidance require that we plan and perforin the audit to obtain reasonable assurance
about whether noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended
June 30, 2016.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in
accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and
questioned costs as items 2016-004, 2016-005, and 2016-006. Our opinion on each major federal program is not
modified with respect to these matters.
The City's responses to the noncompliance findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. The City's responses were not subjected to the auditing procedures
applied in the audit of compliance, and, accordingly, we express no opinion on the responses.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance
with the types of compliance requirements referred to above. In planning and performing our audit of
compliance, we considered the City's internal control over compliance with the types of requirements that could
have a direct and material effect on each major federal program to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, we identified certain deficiencies in internal control over
compliance, as described in the accompanying schedule of findings and questioned costs as items 2016-004,
2016-005, and 2016-006, that we consider to be significant deficiencies.
The City's responses to the internal control over compliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. The City's responses were not subjected to the auditing
procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
L'I
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2016, and
the related notes to the financial statements, which collectively comprise the City's basic financial statements.
We issued our report thereon dated December 21, 2016, which contained unmodified opinions on those financial
statements. Our report included an emphasis of matter regarding the City's adoption of Governmental
Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application and GASB
Statement No. 82, Pension Issues — An Amendment of GASB Statements No. 67, No. 68, and No. 73, as of July 1,
2015. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements 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 auditing standards generally accepted in the
United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all
material respects in relation to the basic financial statements as a whole.
kxx
,, fG Uo
Rancho Cucamonga, California
December 21, 2016
5
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
U.S. Department of Justice
Direct Assistance:
Edward Byrne Memorial Justice Assistance
Federal
Pass -Through/
7,565
Amount
Federal grantor / pass-through
CEDA
Identification
Federal
Provided to
grantor / program or cluster title
Number
Number
Expenditures
Sulan eipients
U.S. Department of Housing and Urban Development
2014 -DJ -BX -0319
13,678
Edward Byrne Memorial Justice Assistance
Grant Program
Direct Assistance:
2015 -DJ -BX -0303
18,147
Subtotal Edward Byrne Memorial Justice Assistance Grant Program
Community Development Block Grant/Entitlement Grants
14.218
B -14 -MC -06-0576
$ 500,200
$ -
Community Development Block Grant/Entitlement Grants
14.218
B -15 -MC -06-0576
932,933
462,724
Subtotal CDBG Entitlement Grants Cluster
Equitable Sharing Program
11433,133
462,724
Total U.S. Department of Housing and Urban Development
198,316
11433,133
462,724
U.S. Department of Justice
Direct Assistance:
Edward Byrne Memorial Justice Assistance
Grant Program
16.738
7,565
2012 -DJ -BX -0827
350
Edward Byme Memorial Justice Assistance
Grant Program
16.738
2013 -DJ -BX -0988
18,806
Edward Byrne Memorial Justice Assistance
Grant Program
16.738
11108,839
2014 -DJ -BX -0319
13,678
Edward Byrne Memorial Justice Assistance
Grant Program
16.738
2015 -DJ -BX -0303
18,147
Subtotal Edward Byrne Memorial Justice Assistance Grant Program
CML -5450(083)
9,783
50,981
Passed through the County of Los Angeles:
17,404
20.205
STPL-5450(078)
189,448
Equitable Sharing Program
16.922
700
CAEQ01940
198,316
Total U.S. Department of Justice
249,297
U.S. Department of Labor
Workforce Investment Act (WIA) Cluster:
Passed through the Antelope Valley Workforce Development Consortium:
Workforce Investment Act - Adult Program 17.258 ADW091001
Workforce Investment Act - Dislocated Worker Formula Grants
Subtotal WIA Cluster
Total U.S. Department of Labor
U.S. Department of Transportation
Passed through the State of California, Transportation Department
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Subtotal Highway Planning and Construction Cluster
17.278 ADW091001
275,996
160,057
436,053
436,053
20.205
BHLS-5450(080)
7,565
20.205
BPMPL-5450(086)
26,656
20.205
BHLS-5405(082)
431,591
20.205
BHLO-5450(066)
11108,839
20.205
BHLS-5450 (008)
55,500
20.205
HSIPL-5450(084)
128,469
20.205
CML -5450(083)
9,783
20.205
HSIPL-5450(081)
17,404
20.205
STPL-5450(078)
189,448
20.205
STPL-5450(089)
700
1,975,955
See accompanying notes to Schedule of Expenditures of Federal Awards
C
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Total U.S. Department of Transportation
U.S. Department of Homeland Security
Direct Assistance:
Pre -Disaster Mitigation 97.047
Total U.S. Department of Homeland Security
Total Federal Awards
Amount
Federal Provided to
Expenditures Subrecipients
$ 28,705 $
146,388
1,225
2,929,248
124,811 _
3,230,377
5,206,332
LPDMIO-P106 2012-1001 11,302
11,302
$ 7,336,117 $ 462,724
See accompanying notes to Schedule of Expenditures of Federal Awards
7
Federal
Pass -Through/
Federal grantor/pass-through
CFDA
Identification
grantor/ program or cluster title
Number
Number
U.S. Department of Transportation (Continued)
Direct Assistance:
Federal Transit Formula Grants
20.507
CA -90-Y276-02
Federal Transit Formula Grants
20.507
CA -90-Y276-02
Federal Transit Formula Grants
20.507
CA -90-Y276-02
Federal Transit Formula Grants
20.507
CA -90-Y276-02
ARRA - Federal Transit Formula Grants
20.507
CA -96-X071-02
Subtotal Federal Transit Cluster
Total U.S. Department of Transportation
U.S. Department of Homeland Security
Direct Assistance:
Pre -Disaster Mitigation 97.047
Total U.S. Department of Homeland Security
Total Federal Awards
Amount
Federal Provided to
Expenditures Subrecipients
$ 28,705 $
146,388
1,225
2,929,248
124,811 _
3,230,377
5,206,332
LPDMIO-P106 2012-1001 11,302
11,302
$ 7,336,117 $ 462,724
See accompanying notes to Schedule of Expenditures of Federal Awards
7
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
NOTE #1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General
The accompanying Schedule of Expenditures of Federal Awards presents the activity of federal award
programs of the City of Santa Clarita, California (City). The City's reporting entity is defined in Note 1 of the
City's financial statements. All federal awards received directly from federal agencies as well as federal
awards passed through from other government agencies are included on the Schedule of Expenditures of
Federal Awards.
B. Basis of Accounting
Funds received under the various grant programs have been recorded within the special revenue and
enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the special revenue
funds, and the accrual basis of accounting for the enterprise funds. Expenditures/expenses are recognized
following the cost principles contained within Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-
through entity identifying numbers are presented where available. The City has elected to use the 10 -percent
de minimis cost rate as allowed under the Uniform Guidance, when applicable.
C. Relationship to Federal Financial Reports
Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with the amounts
reported in the related federal financial reports. However, certain federal financial reports are filed based on
cash expenditures. As such, certain timing differences may exist in the recognition of revenues and
expenditures between the Schedule of Expenditures of Federal Awards and the federal financial reports.
NOTE #2 — FEDERAL FUNDED LOANS
The City administers loans made from funds provided by the following federal programs:
Community Development Block Grants - Section 108 Loan Guarantees 14.248 $ - $ 200,000 $
HOME Investment Partnership Program 14.239 - 294579631
Loans
Loans
Outstanding as of
Expended
Loans
June 30, 2016
During the
Outstanding
With Continuing
Year Ended
As of
Compliance
Federal Program CFDA No. June 30, 2016
June 30, 2016
Requirements
Community Development Block Grants - Section 108 Loan Guarantees 14.248 $ - $ 200,000 $
HOME Investment Partnership Program 14.239 - 294579631
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
I. SUMMARY OF AUDITORS' RESULTS
FINANCIAL STATEMENTS
Type of auditors' report issued on whether the financial statements audited were
prepared in accordance with GAAP:
Internal control over financial reporting:
Material Weaknesses identified?
Significant Deficiencies identified?
Noncompliance material to financial statements noted?
FEDERAL AWARDS
Internal control over major federal programs:
Material Weaknesses identified?
Significant Deficiencies identified?
Type of auditors' report issued on compliance for major federal programs:
Any audit findings disclosed that are required to be reported in accordance with
2 CFR 200 section 200.516(a)?
Identification of major federal programs:
CFDA Number Name of Federal Program or Cluster
14.218 CDBG Entitlement Grants Cluster
20.507
Federal Transit Cluster
Unmodified
No
Yes
No
No
Yes
Unmodified
Yes
Dollar threshold used to distinguish between Type A and Type B programs: $ 7509000
Auditee qualified as low-risk auditee? No
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
II. FINANCIAL STATEMENT FINDINGS
Finding Number 2016-001
SEGREGATION OF DUTIES - TIMECARDS AND PAY RATE APPROVALS
Criteria:
User access to approved timecards should be periodically reviewed to ensure that individuals' access is
appropriate. Additionally, there should be sufficient segregation of duties between key payroll functions,
including authorization of pay changes.
Condition:
Significant Deficiency — We noted the system allows for certain individuals to approve timecards for employees
that they are not supervising and in certain instances, to approve their own timecard. Additionally, we noted step
increases and other salary adjustments are updated by the payroll department within the system. Further, the same
individual in the payroll department who has access to enter time and approve time is responsible for changing the
pay rates within the system.
Context:
The condition was noted during our procedures over the internal controls related to timecard approvals and pay
rate changes.
Effect.
Timecards may be processed for payment without proper review and approval. Pay rate changes may be updated
within the system, and thus payroll processed, with rates that are not properly authorized.
Cause:
The City's system does not properly segregate approval of timecards to ensure each timecard is reviewed by a
different individual. Further, pay rate changes are updated by payroll, which does not properly segregate the
function of processing payroll and updating authorized rates within the system.
Recommendation:
We recommend that the City periodically review the user access rights for approval of timecards to ensure
individuals have appropriate access to approve only employees time that they are supervising and may not
approve their own time. Further, we recommend the City properly segregate duties of those who change pay rates
within the system, and those who process payroll. This may be achieved by restricting the system access to
change pay rates from the Payroll Department and giving that responsibility to Human Resources, or by requiring
regular review and approval of the Payroll Department changes (through a pay rate change report) by Human
Resources.
Views of Responsible Officials and Planned Corrective Actions:
The City concurs. Refer to separate Corrective Action Plan Report for management's response.
1EI
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Finding Number 2016-002
VENDOR CREATION
Criteria:
There
should be sufficient
review over
the creation of vendors, including
retaining of key documents prior to
adding
a vendor to the City's
system.
Condition:
Significant Deficiency — We noted the City's process allows for vendors to be created without evidence of proper
review of key supporting documentation.
Context:
The condition was noted during our procedures over the internal controls related to vendor creation, procurement
and cash disbursements.
Effect.
Unauthorized vendors may be added to the system.
Cause:
The City's process to add a new vendor requires a completed W-9, without a review of the business nature of the
vendor against an approved contract, purchase order, or invoice.
Recommendation:
We recommend that the City review the procedures in place over vendor creation to ensure additional diligence is
performed by the City. This may include review of the vendor addition by a secondary buyer, or additional
documentation required prior to the creation of a vendor.
Views of Responsible Officials and Planned Corrective Actions:
The City concurs. Refer to separate Corrective Action Plan Report for management's response.
11
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Finding Number 2016-003
JOURNAL ENTRIES AND SYSTEM APPROVALS
Criteria:
There should be sufficient segregation of duties with the financial system, including authorization, custody of
assets, and recordkeeping (posting to the general ledger). This includes secondary review of all journal entries
posted to the system.
Condition:
Significant Deficiency — We noted the accounting system does not have system controls to segregate duties
between those preparing the journal entry and those uploading and posting the journal entry.
Context:
The condition was noted during our review of the internal controls over the cash receipts, treasury, and journal
entry processes.
Effect.
Journal entries may be posted without secondary review.
Cause:
The City's Finplus system does not properly restrict the functions between preparing and posting journal entries.
Further, sufficient mitigating controls were not in place to address lack of segregation of duties.
Recommendation:
We recommend that the City review the system workflow related to journal entries to properly segregate the
preparation and posting functions, or to implement other mitigating controls such as review of posted journal
entries against appropriate documentation.
Views of Responsible Officials and Planned Corrective Actions:
The City concurs. Refer to separate Corrective Action Plan Report for management's response.
12
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 309 2016
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
Finding Number 2016-004
Program: Community Development Block Grant (CDBG)
CFDA No.: 14.218
Federal Grantor: U.S. Department of Housing and Urban Development (HUD)
Passed -through: N/A
Award No. and Year: B -15 -MC -06-0576
Compliance Requirements: Subrecipient Monitoring
Criteria:
Title 2 CFR Section 200.331(b) of the Uniform Guidance requires a pass-through entity (PTE) to evaluate each
subrecipient's risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related
to the subaward. This may include consideration of the following factors:
• Subrecipient's prior experience with the same or similar subawards;
• Results of previous audits including whether the subrecipient receives a Single Audit in accordance with
the Uniform Guidance.
• New personnel or system changes
• Extent of Federal awarding agency monitoring
Condition:
Significant Deficiency, Instance of Non -Compliance — The City is a
expended $462,724 to subrecipients during the year ended June 30, 2016
risk assessment in accordance with 2 CFR Section 200.331(b).
Questioned Costs:
None noted.
Context:
PTE for the CDBG program, and has
We noted the City has not performed a
The condition noted above was identified during our procedures related to the subrecipient monitoring for CDBG
program.
Effect.
The City has not completed the required risk assessment as described in the Uniform Guidance.
Cause:
The City's procedures did not ensure the required risk assessment activities were performed in accordance with
Uniform Guidance.
Recommendation:
We recommend
the City review its policies
and internal
control procedures related to subrecipient activities for
federal grants to
ensure that the
required risk
assessments
are performed and updated regularly.
13
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 309 2016
Views of Responsible Officials and Planned Corrective Actions:
The City concurs. Refer to separate Corrective Action Plan Report for management's response.
Finding Number 2016-005
Program: Community Development Block Grant (CDBG)
CFDA No.: 14.218
Federal Grantor: U.S. Department of Housing and Urban Development (HUD)
Passed -through: N/A
Award No. and Year: B -14 -MC -06-0576 and B -15 -MC -06-0576
Compliance Requirements: Allowable Costs/Activities - Administrative Cost Allocation
Criteria:
Title 2 CFR Section 200.430(1) Compensation —personal services of the Uniform Guidance outline standards for
documentation of personnel expenses, and require that charges to Federal awards for salaries and wages must be
based on records that accurately reflect the work performed and must:
• Be supported by a system of internal controls which provide reasonable assurance that the charges are
accurate, allowable, and properly allocated
• Support the distribution of the employees' salary or wages among specific activities or cost objectives
when employee works on more than one activity,
• Budget estimates alone do no quality as support for charges to Federal awards, but may be used for
interim accounting purposes provided that the City's system for establishing the estimates produces
reasonable approximations of the activity actually performed, significant changes are identified and
entered into records in a timely manner, and the City's system of internal controls includes processes to
review after -the -fact interim charges made to a Federal Award based on budget estimates.
Condition:
Significant Deficiency, Instance of Non -Compliance — The City reported $201,979 in personnel costs during the
year ended June 30, 2016. Of the total personnel costs, $109,730 were based on budgeted estimates of costs for
employees who perform activities of the CDBG program. However, in accordance with 2 CFR 200.430(i), we
noted the City does not have a process to review charges after the fact.
Questioned Costs:
$109,730 in personnel costs related to employees who work on multiple activities, including those of the CDBG
program.
Context:
The condition noted above was identified during our procedures related to the allowable costs and activities for
CDBG program, including review of the related payroll/personnel charges. We noted costs were based on
budgeted estimates for employees who perform activities of the CDBG program. However, these estimates were
not validated through subsequent review of actual costs incurred.
i[!
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 309 2016
Effect.
The City has not incorporated all the procedures and internal control processes related to personnel cost allocation
reviews required by the Uniform Guidance.
Cause:
The City's procedures did not ensure the required after -the -fact evaluation of budgeted costs to actuals were
performed in accordance with Uniform Guidance.
Recommendation:
We recommend the City review its policies and internal control procedures related to allowable costs for
personnel for federal grants to ensure that the required budget to actual reviews are performed and documented.
Views of Responsible Officials and Planned Corrective Actions:
The City concurs. Refer to separate Corrective Action Plan Report for management's response.
Finding Number 2016-006
Program: Community Development Block Grant (CDBG)
CFDA No.: 14.218
Federal Grantor: U.S. Department of Housing and Urban Development (HUD)
Passed -through: N/A
Award No. and Year: B -14 -MC -06-0576 and B -15 -MC -06-0576
Compliance Requirements: Allowable Costs, Cash Management
Criteria:
Title 2 CFR Section 200.302(b)(6) and (7) of the Uniform Guidance requires all non -Federal entities to establish
written procedures to implement the requirements of 2 CFR section 200.305 (Cash Management) and for
determining the allow ability of costs in accordance with Subpart E — Cost Principles and the conditions of the
Federal award. Additionally Title 2 CFR Section 200.318(c)(1) and (2) of the Uniform Guidance requires the
non -Federal entity to maintain written standards of conduct covering conflicts of interest and governing the
actions of its employees engaged in the selection, award and administration of contracts, and covering
organization conflicts of interest.
Condition:
Significant Deficiency, Instance of Non -Compliance — The City has not established written procedures to
implement the cash management requirements of 2 CFR Section 200.305, including written procedures that
minimize the time elapsing between the transfer of funds and disbursement by the City. Further, the City has not
established written procedures for determining allow ability of costs in accordance with Subpart E — Cost
Principles or the conditions of the Federal award.
Questioned Costs:
None noted.
15
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 309 2016
Context:
The condition noted above was identified during our procedures related to cash management and allowable costs
for the CDBG program, which is subject to the Uniform Guidance.
Effect.
The City has not complied with the specific requirements for written procedures over cash management and
allowable costs as described in the Uniform Guidance.
Cause:
The City's procedures did not ensure the required written procedures were developed and implemented in
accordance with the Uniform Guidance.
Recommendation:
We recommend the City review its policies and internal control procedures, and formalize written procedures
related to cash management requirements within 2 CFR Section 200.305 and allowable costs in accordance with
Subpart E — Cost Principles.
Views of Responsible Officials and Planned Corrective Actions:
The City concurs. Refer to separate Corrective Action Plan Report for management's response.
16
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF PRIOR YEAR AUDIT FINDINGS AND RECOMMENDATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
None reported.
17
THE TRANSIT ENTERPRISE FUND
OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE
CITY OF SANTA CLARITA, CALIFORNIA)
Financial Report
Year Ended June 30, 2016
THE TRANSIT ENTERPRISE FUND
OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE
CITY OF SANTA CLARITA, CALIFORNIA)
Financial Report
Year Ended June 30, 2016
Table of Contents
Page
INDEPENDENT AUDITORS' REPORT.................................................................................................1
FINANCIAL STATEMENTS
Statementof Net Position.................................................................................................................3
Statement of Revenues, Expenses and Changes in Net Position......................................................4
Statementof Cash Flows..................................................................................................................5
Notesto Financial Statements..........................................................................................................6
REQUIRED SUPPLEMENTARY INFORMATION
Schedule
of the
Transit Fund's
Proportionate Share
of the Net Pension Liability .........................17
Schedule
of the
Transit Fund's
Contributions................................................................................18
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Transit
Enterprise Fund (Transit
Fund), an
enterprise fund of the City of Santa Clarita, California
(the City), as of and
for the year ended June 30,
2016, and
the related notes to the financial statements, as listed in
the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Fund's preparation and fair presentation of the
financial statements 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 Fund's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Fund as of June 30, 2016, and the changes in its financial position and cash flows thereof for the
year then ended, in accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Transit Fund and do
not purport to, and do not, present fairly the financial position of the City as of June 30, 2016, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of
proportionate share of the net pension liability, and schedule of contributions be presented to supplement the basic
financial statements. Such information, 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.
Management has omitted the management's discussion and analysis that accounting principles generally accepted
in the United States of America require to be presented to supplement the basic financial statements. Such
missing information, 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. Our opinion on the basic
financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2016, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe 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 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's internal control over financial reporting and compliance.
A7s Gtr
Rancho Cucamonga, California
December 21, 2016
E
FINANCIAL STATEMENTS
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
STATEMENT OF NET POSITION
JUNE 309 2016
ASSETS
Current assets
Pooled cash and investments
Accounts receivable
Interest receivable
Prepaids
Due from other governments
Total current assets
Noncurrent assets
Capital assets
Nondepreciable assets
Depreciable assets, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
LIABILITIES
Current liabilities
Accounts payable
Compensated absences payable
Total current liabilities
Noncurrent liabilities
Compensated absences payable
Net pension liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OR RESOURCES
Deferred inflows related to pensions
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
See notes to financial statements.
3
$ 4,2709156
308
11,646
215,582
2,890,576
7,388,268
15,089,616
61,597,644
76,687,260
84,075,528
151,201
3,163,708
51,460
3,215,168
30,937
1,084,341
1,115,278
4,330,446
107,260
76,687,260
3,101,763
$ 791789,023
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
JUNE 309 2016
Operating revenues
Metrolink and EZ pass revenues $ 2019670
Fixed -route passenger fares 394749343
Dial -A -Ride passenger fares 114,249
County of Los Angeles operating assistance 1,819,843
Specialized transit services 947,425
Miscellaneous revenues 9889903
Total operating revenues 7,546,433
Operating expenses
Salaries and benefits
1,2279394
Administrative services
1,3009754
Contract transportation services
1894589987
Insurance
759550
Supplies, utilities and other
195819180
Depreciation
594839542
Total operating expenses
28,1279407
Operating loss
(2095809974)
Nonoperating revenues (expenses)
Proposition A discretionary
498799561
Proposition A specialized transportation
8159312
Proposition C expansion
1909272
Proposition C BSB'
499389
Proposition C transit mitigation
229691
Proposition C MOSIP
19814
Proposition C security allocation
4139726
Measure R bus operations
2,4239492
Intergovernmental revenues
3019642
Transit mitigation fees
559600
Interest income
599086
Total nonoperating revenues
9,2129585
Loss before contributions and transfers (11,3689389)
Capital contributions:
Federal Transit Administration capital grants 2,771,993
Proposition C MOSIP 7329312
Total capital contributions 3,504,305
Transfers from the City of Santa Clarita 695909158
Transfers to the City of Santa Clarita (1999894)
Change in net position (194739820)
Net position, beginning of year 8192629843
Net position, end of year $ 79,7899023
See notes to financial statements.
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
STATEMENT OF CASH FLOWS
JUNE 309 2016
Cash flows from operating activities
Cash received from customers and users $ 65557,222
Cash payments to suppliers of goods and services (215514,402)
Cash payments to employees (1,253,472)
Cash received from other sources 988,903
Net cash used for operating activities (155221,749)
Cash Flows from noncapital financing activities
Cash transfers out to the City of Santa Clarita (199,894)
Cash transfers in from the City of Santa Clarita 65590,158
Federal and state funding received 85980,968
Net cash provided by noncapital financing activities 155371,232
Cash flows from capital and related financing activities:
Federal and state capital contributions 39504,305
Acquisition of capital assets (35674,931)
Net cash used for capital and related financing activities (170,626)
Cash flows from investing activities:
Interest received 56,189
Net increase in cash and cash equivalents 35,046
Pooled cash and cash equivalents
Beginning of year 4,235,110
End of year $ 45270,156
Reconciliation of operating loss to net cash used in operating activities
Operating loss $ (205580,974)
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation 59483,542
Pension Expense 106,537
Changes in operating assets and liabilities:
(Increase) in accounts receivable (308)
Decrease in prepaids 125,202
(Decrease) in accounts payable and accrued liabilities (223,133)
Increase in compensated absences 79146
Payments related to deferred outflows for contributions subsequent to the measurement
date (139,761)
Total adjustments 5,359,225
Net cash used in opearting activities $ (15,221,749)
See notes to financial statements.
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of business: The financial statements of the Transit Enterprise Fund (Transit Fund) of the City of Santa
Clarita, California (City) are intended to present the financial position and results of the bus line services
operation. The financial statements of the Transit Fund are included as a business -type (enterprise fund) activity
in the basic financial statements of the City.
A summary of the Transit Fund's significant accounting policies is as follows:
The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United
States of America (U.S. GAAP) applicable to proprietary activities of governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and
financial reporting principles.
Financial presentation: The financial statements of the Fund include the statement of net position, the statement
of revenues, expenses, and changes in net position, and the statement of cash flows.
The financial statements are prepared using the "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or noncurrent) 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 recognized in the
period in which they are earned, while expenses are recorded in the period in which the liability is incurred.
Operating revenues and expenses result from the local public transit services for the local, commuter, Dial -A -Ride
and Access Services, Inc., specializing in transit operations and maintenance. The operating revenues consist of
charges to customers and users for the transit services provided. Operating expenses include the costs of
providing these services, administrative expenses, and depreciation expense. All revenues and expenses not
meeting these definitions and which are not capital in nature are reported as non-operating revenues and expenses.
The Transit Fund recognizes assets of non-exchange transactions in the period when the underlying transaction
occurs, when an enforceable legal claim has arisen, or when all eligibility requirements are met. Non-exchange
transactions occur when the Fund receives value from another parry without giving equal or nearly equal value in
return. Various intergovernmental revenues and most donations are examples of non-exchange transactions.
Under the terms of grant agreements, the Fund has an enforceable claim with other governmental agencies when
specific program expenses are incurred. The Fund has an enforceable claim to local funding allocations when the
allocations are determined by the other governmental agencies on an annual basis.
Pooled cash and investments: The Transit Fund's cash balance was pooled with various other City funds for
deposit and investment purposes. The City's treasury is responsible for the cash management of the Transit
Fund's cash balance. Cash on hand, demand deposits, and short-term investments with original maturity of three
months or less from the date of acquisition, and the Transit Fund's participation in the City investment pool are
considered to be cash and cash equivalents. Each City fund owns a share of pooled cash and investments and
interest income was apportioned based on its average month-end cash balances in proportion to the total of the
pooled cash and investments.
Prepaids: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in the financial statements.
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Administrative services: The Transit Fund has no direct employees, as all personnel -related services are
provided by vendors through transportation service contracts or through City employees. Costs for such City
employees, including the allocation of accrued compensated absences liabilities and pension costs, are allocated to
the Fund based on an approved cost allocation plan.
Grants: Grant revenues and receivables are recorded when earned on grants that have been approved and funded
by the grantor, and when eligibility requirements for the grant have been met. Grant sources include Federal
Transit Administration grants.
Capital assets: Capital assets include land, site improvements, buildings and improvements, and vehicles and
equipment. Capital assets are defined by the City as assets with an initial cost of more than $5,000 ($25,000 for
site improvements and building improvements and $100,000 for infrastructure) and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Site improvements 5-25 years
Building and improvements 5-50 years
Equipment 5-25 years
Pension: The Transit Fund reports a proportion of the net pension liability, deferred outflows and inflows of
resources related to pensions, and pension expense, of the collective net pension liability of the City of Santa
Clarita. All amounts and disclosures are presented on a cost-sharing perspective where the Transit Fund is a
participant in the City's plan. For purposes of measuring the net pension liability, deferred outflows/inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the California
Public Employees Retirement System (CalPERS) plan and additions to/deductions from the plan's fiduciary net
position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit
payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value.
Net position: Net position represents the difference between assets and deferred outflows, and liabilities and
deferred inflows, and is classified into three categories:
Net investment in capital assets: This amount consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balances of any borrowings used for the acquisition, construction or
improvement of those assets, and excludes unspent debt proceeds.
Restricted: Represents the net position that is constrained for use by either (a) external creditors, grantors,
contributors, or laws or regulations of other governments or (b) by law through constitutional provisions
or enabling legislation.
Unrestricted net position: This amount represents the residual of amounts not classified in the other two
categories and represents the net position available for the City.
When an expense is incurred for purposes for which both restricted and unrestricted resources are available, the
Transit Fund's policy is to apply restricted resources first.
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Employee compensated absences: It is the City's policy to permit employees to accumulate earned but unused
vacation (compensated absences). This accumulation is recorded as an expense and liability of the Transit Fund in
the fiscal year earned. The outstanding balance as of June 30, 2016 was $82,397 of which $51,460 was considered
due within one year, and $30,937 was considered due in more than one year.
Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions. These estimates and assumptions affect the reported amounts in the financial
statements and accompanying notes. Actual results could differ from these estimates.
Effect of new Governmental Accounting Standards Board (GASB) Dronouncements:
Effective This Fiscal Year
GASB Statement No. 72 — In February 2015, GASB issued Statement No. 72 — Fair Value Measurement and
Application. The objective of this Statement is to improve financial reporting by clarifying the definition of fair
value for financial reporting purposes, establishing general principles for measuring fair value, providing additional
fair value application guidance, and enhancing disclosures about fair value measurements. The requirements of this
Statement are effective for financial statements for periods beginning after June 15, 2015, or the 2015-2016 fiscal
year. The Fund has implemented this statement effective July 1, 2015.
GASB Statement No. 82 — hi March 2016, GASB issued Statement No. 82, Pension Issues — An Amendment of
GASB Statements No. 67, No. 68, and No. 73. The objective of the Statement is to address certain issues that have
been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and
Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related
Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB
Statements 67 and 68. Specifically, the Statement addresses issues regarding (1) the presentation of payroll -
related measures in required supplementary information, (2) the selection of assumptions and the treatment of
deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the
classification of payments made by employers to satisfy employee (plan member) contribution requirements. The
Statement is effective for the reporting periods beginning after June 15, 2016. The Fund has implemented this
statement effective July 1, 2015.
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Effect of new Governmental Accounting Standards Board (GASB) pronouncements (Continued):
Effective in Future Fiscal Years
GASB Statement No. 74 — In June 2015, GASB issued Statement No. 74 — Financial Reporting for
Postemployment Benefit Plans Other than Pension Plans. The objective of this Statement is to improve the
usefulness of information about postemployment benefits other than pensions (other postemployment benefits or
OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for
making decisions and assessing accountability. This Statement is effective for financial statements for fiscal
years beginning after June 15, 2016, or the 2016-2017 fiscal year. The Transit Fund has not determined the effect
of this statement.
GASB Statement No. 75 — In June 2015, GASB issued Statement No. 75 — Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions. The objective of this Statement is to improve accounting and
financial reporting by state and local governments for postemployment benefits other than pensions (other
postemployment benefits or OPEB). This Statement is effective for fiscal years beginning after June 15, 2017, or
the 2017-2018 fiscal year. The Transit Fund has not determined the effect on the financial statements.
GASB Statement No. 77 — In August 2015, GASB issued Statement No. 77 — Tax Abatement Disclosures. The
objective of this Statement is to provide financial statement users with essential information about the nature and
magnitude of the reduction in tax revenues through tax abatement programs. The requirements of this Statement
are effective for the financial statements for periods beginning after December 15, 2015, or the 2016-2017 fiscal
year. The Transit Fund has not determined the effect of this statement.
GASB Statement No. 78 — In December 2015, GASB issued Statement No 78, Pensions Provided through
Certain Multiple -Employer Defined Benefit Pension Plans. The Statement amends the scope and applicability of
GASB Statement No. 68 to exclude certain types of cost-sharing multiple -employer plans. The Statement is
effective for the periods beginning after December 15, 2015. The Transit Fund has not determined the effect of
the statement.
GASB Statement No. 80 — In January 2016, GASB issued Statement No. 80, Blending Requirements for Certain
Component Units — An Amendment of GASB Statement No. 14. The objective of the Statement is to improve
financial reporting by clarifying the financial statement presentation requirements for certain component units.
This Statement amends the blending requirements established in paragraph 53 of Statement No. 14, The Financial
Reporting Entity, as amended. The additional criterion requires blending of a component unit incorporated as a
not-for-profit corporation in which the primary government is the sole corporate member. The Statement is
effective for the reporting periods beginning after June 15, 2016. The Transit Fund has not determined the effect
of the statement.
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Effect of new Governmental Accounting Standards Board (GASB) pronouncements (Continued):
Effective in Future Fiscal Years (Continued)
GASB Statement No. 81 — In March 2016, GASB issued Statement No. 81, Irrevocable Split—Interest
Agreements. The objective of the Statement is to improve financial reporting for irrevocable split -interest
agreements by providing recognition and measurement guidance for situations in which a government is a
beneficiary of the agreement. The Statement requires that a government that receives resources pursuant to an
irrevocable split -interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception
of the agreement. Furthermore, the Statement requires that a government recognize assets representing its
beneficial interests in irrevocable split -interest agreements that are administered by a third party, if the
government controls the present service capacity of the beneficial interests. The Statement requires that a
government recognize revenue when the resources become applicable to the reporting period. The Statement is
effective for the reporting periods beginning after December 15, 2016. The Transit Fund has not determined the
effect of the statement.
NOTE 2 — POOLED CASHAND INVESTMENTS
The Transit Fund's cash and investment balance of $4,270,156 is held in the City investment pool. The City
investment pool is not rated and is not registered with the Securities Exchange Commission (SEC). The Transit
Fund's position in the City investment pool at June 30, 2016 is stated at fair value. For further information
regarding the City Pool, refer to the City of Santa Clarita Comprehensive Annual Financial Report.
Fair Value Measurement
For investments, the City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable inputs. As of June 30, 2016, the
Transit Fund held no individual investments. Deposits and withdrawals from the City Pool are made on the basis
of $1 and not fair value. Accordingly, the measurement of fair value of the Transit Fund's proportionate share of
investments in the City investment pool is based on uncategorized inputs not defined as Level 1, Level 2, or
Level 3.
NOTE 3 — DUE FROM OTHER GOVERNMENTS
Due from other governments consists of the following at June 30, 2016:
Los Angeles County
Federal Transit Administration
Other Agencies
10
$ 197935408
706,709
390,459
$ 2,890,576
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 4 — CAPITAL ASSETS
Changes in capital assets of the Fund at June 30, 2016 consisted of the following:
Non -depreciable assets:
Land
Intangible
Construction
Total non -depreciable assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
Total accumulated depreciation
Total depreciable assets, net
Total capital assets, net
fe"im.
Balance
June 30, 2015 Additions Deletions Transfers June 30, 2016
$ 10,7879880 $ - $ - $ - $ 10,787,880
4,300,000 - - - 4,300,000
15736 1,736
15,087,880 1,736 - - 15,089,616
12,941,276
-
-
- 125941,276
411483,799
-
-
- 415483,799
45,877,133
356735195
(10,036)
- 49,540,292
100,302,208
356739195
(10,036)
- 103,965,367
(2,1271149)
(5685221)
-
- (2,695,370)
(10,159,039)
(883,347)
-
- (I 1,042,386)
(24,6089029)
(450315974)
10,036
(28,629,967)
(36,894,217)
(5,4835542)
10,036
- (42,367,723)
63,407,991
(1,810,347)
-
- 61,597,644
$ 78,495,871
$ (1.808.611) S
7
$ 76,687,260
NOTE 5 — TRANSFERS TO/FROM THE CITY OF SANTA CLARITA
During the year ended June 30, 2016, the Transit Fund transferred $199,894 to the City of Santa Clarita's General
Fund and Nonmajor governmental funds of the City for support of transit operations. The management of the
City approved the transfers to the Transit Fund of $6,590,158 as follows:
Proposition A
Proposition C
NOTE 6 —PENSION PLAN
$ 3,757,974
2,832,184
$ 61590,158
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous
Pension Plan, an agent multiple -employer defined benefit pension plan administered by the California Public
Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its
participating member employers. The employees are participants in the Miscellaneous Plan of the City.
Accordingly, all amounts and disclosures are presented on a cost-sharing perspective where the Transit Fund is a
participant in the City's plan. Benefit provisions under the Plan 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.
III
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 6 —PENSION PLAN (CONTINUED)
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 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 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. The cost of living adjustments for each plan are applied as specified by
the Public Employees' Retirement Law.
The Plans' provisions and benefits in effect at June 30, 2016, are summarized as follows:
Formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates*
Required employer contribution rates
Applies to:
Miscellaneous
Tier 1 Tier 2 Tier 3
2.7% at 55 2% at 60 2% at 62
5 years of service 5 years of service 5 years of service
monthly for life monthly for life monthly for life
55 60 62
2.7% 2.0% 2.0%
8% 7% 6.25%
14.185% 14.185% 14.185%
Tier 1 Tier 2 Tier 3
Employees hired before
April 9, 2011, including
those hired as part time
seasonal (PTS) who
later convert to regular
full time employees.
Employees hired
between April 9, 2011
and December 31, 2012,
or those hired January
1, 2013 or later, who
have been a CalPERS
member with a public
agency or in a
reciprocal plan within
the last 6 months). Also
includes PTS who later
convert to regular full
time employees
Employees hired
January 1, 2013 or later
(if employee has not
been a CalPERS
member with a public
agency, or in a
reciprocal plan within
the last 6 months)
* For unrepresented Tier 1 participants, the City pays 4% of the required employee contribution. For the SEN Tier 1
participants, the City pays 3% of the required employee contributions. The City does not pay any portion of the employee
contribution for Tier 2 or Tier 3 participants. These payments are classified as employee contributions in accordance with GASB
68.
12
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 6 —PENSION PLAN (CONTINUED)
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 rate. Funding contributions for Plan are determined annually on an actuarial basis
as of June 30 by CalPERS. 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 rates of employees. The expense associated with contributions for the Transit Fund employees is
charged to payroll at the required rates previously noted.
Contributions recognized
by
the pension plan,
and contributed by the Transit Fund for the year ended June 30,
2016 were $139,761.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2016, the net pension liability reported by the Transit Fund for its proportionate share of the net
pension liability of the Plan, as allocated by the City, was $1,084,341.
The Transit Fund's net pension liability was measured as the proportionate share of the City's net pension liability
for the Miscellaneous Plan. The net pension liability of the Plan was measured as of June 30, 2015, and the total
pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as
of June 30, 2014 rolled forward to June 30, 2015 using actuarial update procedures. The Transit Fund's
proportion of the net pension liability was based on actual contributions paid by the Transit Fund in relation to the
total City's contribution paid for the Miscellaneous Plan, as determined by the City. The Transit Fund's
proportion of the net pension liability for the Plan as of June 30, 2014 and 2015 were as follows:
Proportion - June 30, 2014
Proportion - June 30, 2015
Change - Increase (Decrease)
3.51419%
3.51419%
0.00000%
For the year ended June 30, 2016, the Transit Fund recognized pension expense of $106,537. At June 30, 20165
the Transit Fund reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Difference between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings on
pension plan investments
Contributions subsequent to the measurement date
Total
13
Deferred Deferred
Outflows Inflows
of Resources of Resources
$ 119440 $ -
- 82,957
- 24,303
139,761 -
$ 151,201 $ 107,260
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 6 —PENSION PLAN (CONTINUED)
The amount of $139,761 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2017.
Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense
as follows:
Actuarial Assumptions
The total pension liabilities in the June 30, 2014 actuarial valuation for the City's Miscellaneous Plan was
determined using the following actuarial assumptions applied to all periods included in the measurement:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
(1) Depending on age, service and type of employment
(2) Derived using Ca1PERS Membership Data for all Funds
Miscellaneous
June 30, 2014
June 30, 2015
Entry -Age Normal Cost Method
7.65%
2.75%
3.00%
3.30%- 14.20%(1)
7.65%
(2)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2014 valuation
were based on the results of an actuarial experience study for the period 1997 to 2011. Further details of the
Experience Study can found on the Ca1PERS website.
i[!
Deferred
Outflows/(Inflows)
Fiscal Year Ending
of Resources
2017
$ (423613)
2018
(423613)
2019
(423613)
2020
323019
Total
$ (959820)
Actuarial Assumptions
The total pension liabilities in the June 30, 2014 actuarial valuation for the City's Miscellaneous Plan was
determined using the following actuarial assumptions applied to all periods included in the measurement:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
(1) Depending on age, service and type of employment
(2) Derived using Ca1PERS Membership Data for all Funds
Miscellaneous
June 30, 2014
June 30, 2015
Entry -Age Normal Cost Method
7.65%
2.75%
3.00%
3.30%- 14.20%(1)
7.65%
(2)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2014 valuation
were based on the results of an actuarial experience study for the period 1997 to 2011. Further details of the
Experience Study can found on the Ca1PERS website.
i[!
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 6 —PENSION PLAN (CONTINUED)
Discount Rate
The discount rate used to measure the total pension liability was 7.65 percent for each plan. The projection of
cash flows used to determine the discount rate assumed that employee contributions will be made at the current
contribution rate and that the district's contributions will be made at rates equal to the difference between
actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension
plan's fiduciary net position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
In determining the long-term expected 7.65 percent rate of return on pension plan investments, Ca1PERS took into
account both short and long-term market return expectations as well as the expected pension fund cash flows.
Such cash flows were developed assuming that both members and employers will make their required
contributions on time and as scheduled in all future years. Using historical returns of all the pension funds' asset
classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-
term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows
as the one calculated using both short-term and long -tern returns. The expected rate of return was then set
equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one
percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated
using the capital market assumptions applied to determine the discount rate and asset allocation.
New Strategic Expected Real Rate
Asset Class
Allocation
of Return 1-10 Years I
Global Equity
51.0%
5.25%
Global Debt Securities
19.0%
0.99
Inflation Assets
6.0%
0.45
Private Equity
10.0%
6.83
Real Assets
10.0%
4.50
Infrastructure and Forestland
2.0%
4.50
Liquidity
2.0%
-0.55
100%
(a) An expected inflation rate of 2.5% used for this period
(b) An expected inflation rate of 3.0% used for this period
Expected Real Rate
of Return 11+ Years
5.71%
2.43
3.36
6.95
5.13
5.09
-1.05
Sensitivity of the Transit Fund's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the Transit Fund's proportionate share of the net pension liability for the Plan, calculated
using the discount rate for the Plan, as well as what the Transit Fund's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 -percentage point lower or 1 -percentage point
higher than the current rate:
1% Decrease Current Discount 1% Increase
(6.65°/x) Rate (7.65%) (8.65%)
Transit Fund's proportionate share of the net pension liability $ 1,923,777 $ 1,084,341 $ 400,927
15
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 6 —PENSION PLAN (CONTINUED)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the City's CAFR, as well as
the separately issued CalPERS financial reports.
NOTE 7 — ADMINISTRATIVE AND PERSONNEL COSTS
Certain general and administrative costs are allocated to the Transit Fund based upon an approved cost allocation
plan. Such allocated costs were $742,430 for the year ended June 30, 2016.
16
REQUIRED SUPPLEMENTARY INFORMATION
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
SCHEDULE OF THE TRANSIT FUND'S PROPORTIONATE SHARE OF
THE NET PENSION LIABILITY
FOR THE YEAR ENDED JUNE 309 2016
Proportion of the collective net pension liability
Proportionate share of the collective net pension liability
Covered payroll**
Proportionate Share of the collective net pension liability as a percentage
of covered payroll
Plan fiduciary net position as a percentage of the total pension
liability
2016 2015
3.51419% 3.51419%
$ 190849341 $ 9449480
9575079 $ 9445599
113.30% 99.99%
79.11% 80.58%
Note to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore, only two years are shown.
** The Fund adopted GASB Statement No. 82, and has therefore restated the schedule to show covered
payroll based on pensionable earnings.
Changes
of
Assumptions - The discount rate was
changed from 7.5%
at the June 30, 2014 measurement date to
7.65%
at the June 30, 2015 measurement date.
17
THE TRANSIT ENTERPRISE FUND OF THE CITY OF SANTA CLARITA
(AN ENTERPRISE FUND OF THE CITY OF SANTA CLARITA, CALIFORNIA)
SCHEDULE OF THE TRANSIT FUND'S CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 309 2016
Actuarially determined contributions
Contributions in relation to the actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
2016 2015
139,761 $ 131436
(1395761) (131,436)
$ - S -
981,667
14.24%
Note to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore, only two years are shown.
** The Fund adopted GASB Statement No. 82, and has therefore restated the schedule to show covered
payroll based on pensionable earnings.
lu
957,079
13.73%
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT
SPECIAL REVENUE FUND
Financial and Compliance Report
For the Year Ended June 30, 2016
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
Financial and Compliance Report
For the Year Ended June 30, 2016
Table of Contents
Lam-'
INDEPENDENT AUDITORS' REPORT.................................................................................................1
BASIC FINANCIAL STATEMENTS
BalanceSheet...................................................................................................................................3
Statement of Revenues, Expenditures and Changes in Fund Balance..............................................4
Notesto Financial Statements..........................................................................................................5
REQUIRED SUPPLEMENTARY INFORMATOIN
Schedule of Revenues, Expenditures and Changes in Fund balance —
Budget and Actual and related Note to RSI...................................................................................7
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS WITH ASSEMBLY BILL 2766 (AB 2766) CHAPTER 1705 (HEALTH
AND SAFETY CODE SECTIONS 44220 THROUGH 44247) BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS............................................................................................8
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Air Quality Improvement Special Revenue Fund
(Fund) of the City of Santa Clarita, California (City) as of and for the year ended June 30, 2016, and the related
notes to the financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements 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 entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Fund as of June 30, 2016, and the changes in financial position for the year then ended, in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Fund, and do not
purport to, and do not, present fairly the financial position of the City, as of June 30, 2016, or the changes in
financial position 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of revenues,
expenditures, and changes in fund balance — budget and actual on page 7 be presented to supplement the basic
financial statements. Such information, 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 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.
Management has omitted the Management's Discussion and Analysis for the Fund that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, 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. Our opinion
on the basic financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2016, on
our consideration of the Fund's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe 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 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 Fund's internal control over financial reporting and compliance.
Rancho Cucamonga, California
December 21, 2016
K
BASIC FINANCIAL STATEMENTS
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
BALANCESHEET
JUNE 309 2016
ASSETS
Pooled cash and investments
Interest receivable
Due from South Coast Air Quality Management District
Total assets
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued liabilities
Fund Balance
Restricted
Total liabilities and fund balance
See accompanying notes to financial statements.
$ 647,624
1,603
72,955
$ 722,182
$ 4,851
717,331
$ 722,182
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 309 2016
REVENUES
Assembly Bill 2766 Revenues
Investment income
Total revenues
EXPEDITURES
Administrative
Air quality improvement program
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
See accompanying notes to financial statements.
$ 272,762
10,193
282,955
6,267
71,543
77,810
205,145
512,186
$ 717,331
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation: The Air Quality Improvement Special Revenue Fund's (Fund) financial statements are
prepared in conformity with accounting principles generally accepted in the United States of America (U.S.
GAAP). The Fund is presented as a Special Revenue Fund of the City of Santa Clarita (City). The Governmental
Accounting Standards Board (GASB) is the acknowledged standard-setting body for establishing accounting and
financial reporting standards followed by governmental entities in the United States. The financial statements
were prepared from only the accounts of the Fund. Accordingly, the financial statements do not purport to, and
do not, present fairly the financial position of the City and changes in financial position thereof for the year then
ended in conformity with generally accepted accounting principles in the United States of America.
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity with a self -balancing set of accounts. Monies received under Assembly Bill 2766 (AB 2766) are recorded
in the Fund. AB 2766 authorizes the South Coast Air Quality Management District (SCAQMD) to impose an
annual vehicle registration fee and to distribute a portion of the collected revenues to all local jurisdictions within
the South Coast Air Basin. These revenues are to be used solely to reduce air pollution from motor vehicles by
implementing new programs and studies necessary for the implementation of the California Clean Air Act.
Fund financial statements: Governmental fund financial statements include a balance sheet and a statement of
revenues, expenditures and changes in fund balance.
The Fund is accounted for on a spending or "current financial resources" measurement focus and the modified
accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance
sheet. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the
modified accrual basis of accounting, revenues are recognized in the accounting period in which they become
both measurable and available to finance expenditures of the current period.
Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. The primary revenue sources are revenues associated with AB 2766 and interest revenue, which
are measurable and considered to be available if they are collected within 90 days of the end of the current fiscal
period.
The Fund recognizes assets of non-exchange transactions in the period when the underlying transaction occurs
when all eligibility requirements are met. Non-exchange transactions occur when one government provides (or
receives) value to (from) another party without receiving (or giving) equal or nearly equal value in return. The
AB 2766 revenue is an example of a non-exchange transaction.
Expenditures are recorded in the accounting period in which the related fund liability is incurred. However, debt
service expenditures are recorded only when payment is due.
5
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pooled cash and investments: The Fund's cash balance was pooled with various other City funds for deposit and
investment purposes. The City's treasury is responsible for the cash management of the Fund's cash balance,
which pools available cash for investment purposes. The cash and cash equivalents are considered to be cash on
hand, demand deposits, and short-term investments with original maturity of three months or less from the date of
acquisition. Each City fund owns a share of pooled cash and investments, which are separately maintained, and
interest income was apportioned based on its average month-end cash balances to the total of the pooled cash and
investments.
Fund balance and spending policy: In the Fund's financial statements, fund balance is classified as follows:
Restricted: Restricted fund balances encompass the portion of net fund resources subject to externally enforceable
legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants,
grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through
constitutional provisions or enabling legislation. Expenditures as they are incurred are applied against these
restricted net resources.
Use of estimates: The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions. These
estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ
from these estimates and assumptions.
NOTE 2 — POOLED CASHAND INVESTMENTS
The Fund's pooled cash and investments at June 30, 2016 is $647,624.
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment Risk
Disclosures, are reported in the annual report of the City. The City's pooled cash and investments are unrated,
and average maturity is 30 days or less.
The Fund recognizes its position in the City investment pool at fair value based on information provided by the
City. Deposits and withdrawals to the pool are made on the basis of $1 and not fair value. Accordingly, the
inputs used to measure fair value are uncategorized and not defined as Level 1, Level 2, or Level 3. Additional
information regarding interest rate risk, concentration of credit risk, custodial credit risk and fair value
measurements of the City's pooled cash and investments is presented in the City's Comprehensive Annual
Financial Report.
NOTE 3 — CONTINGENCIES
The Fund receives monies from the SCAQMD that are subject to review and audit by the SCAQMD. Although
such audits could result in disallowed expenditures under terms of the program's guidelines, it is believed that any
repayments resulting from disallowances will not be material. Any identified amounts as a result of these audits
would be required to be remitted back to the SCAQMD or having future remittances from the SCAQMD
deducted accordingly.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 309 2016
Budgetary Information
The City adopts an annual budget on a basis consistent with accounting principles generally accepted in the
United States of America and utilizes an encumbrance system as a management control technique to assist in
controlling expenditures and enforcing revenue provisions. The appropriated budget is prepared by function and
department. The City's department heads, with the approval of the City Manager, may make transfers of
appropriations within a department and between functions within a fund.
The following is the budget comparison schedule for the Fund for the year ended June 30, 2016:
REVENUES
Intergovernmental
Investment income
Total revenues
EXPENDITURES
Operating:
Operating
Capital outlay
Capital improvement projects:
Personnel
Operating
Total expenditures
Net change in fund balance
Original
257,000
697
Actual
Final Amounts
257,000
697
257,697 257,697
18,590
410
746,296
765,296
$ (507,599)
20,532
410
746,296
767,238
$ (509,541
$ 272,762
10,193
282,955
15,051
410
5,818
56,531
77,810
205,145
Fund balance, beginning of year 5129186
Fund balance, end of year $ 717,331
Variance with
Final Budget
Positive
(Negative)
$ 15,762
9,496
25,258
5,481
(5,818)
689,765
689,428
$ 714,686
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS WITH ASSEMBLY BILL 2766
(AB 2766) CHAPTER 1705 (HEALTH AND SAFETY CODE SECTIONS 44220 THROUGH 44247)
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, 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 of the Air Quality Improvement Special
Revenue Fund (Fund) of the City of Santa Clarita, California (City) as of and for the year ended June 30, 2016,
and the related notes to the financial statements, and have issued our report thereon dated December 21, 2016.
Our report included an emphasis of matter indicating that the financial statements present only the Fund and do
not present the financial position or changes in financial position of the City. Our report also included an
explanatory paragraph stating that the financial statements do not include Management's Discussion and Analysis.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting of the Fund (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an
opinion on the effectiveness of the City'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 may exist that have not been
identified.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements, including applicable provisions of AB 2766, Chapter 1705 (Health and Safety Code Sections
44220 through 44247), noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. 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.
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 entity'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 entity's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
F Gtr
Rancho Cucamonga, California
December 21, 2016
E
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT
SPECIAL REVENUE FUND
Financial and Compliance Report
For the Year Ended June 30, 2016
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
Financial and Compliance Report
For the Year Ended June 30, 2016
Table of Contents
INDEPENDENT AUDITORS' REPORT.................................................................................................1
BASIC FINANCIAL STATEMENTS
BalanceSheet...................................................................................................................................3
Statement of Revenues, Expenditures and Changes in Fund Balance..............................................4
Notes to Financial Statements..........................................................................................................5
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balance —
Budget and Actual — Open Space Preservation District......................................................8
Note to Required Supplementary Information.................................................................................9
Vadnek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Open Space Preservation District Special Revenue
Fund (Fund) of the City of Santa Clarita, California (City) as of and for the year ended June 30, 2016 and the
related notes to the financial statements, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements 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 entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Fund as of June 30, 2016 and the changes in financial position for the year then ended, in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Fund and do not
purport to, and do not, present fairly the financial position of the City as of June 30, 2016, and the changes in
financial position 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of revenues,
expenditures, and changes in fund balance — budget and actual on page 8 be presented to supplement the basic
financial statements. Such information, 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.
Management has omitted the Management's Discussion and Analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial statements.
Such missing information, 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. Our opinion on the basic
financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2016, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe 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 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's internal control over financial reporting and compliance.
Rancho Cucamonga, California
December 21, 2016
Pj
BASIC FINANCIAL STATEMENTS
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
BALANCESHEET
JUNE 309 2016
Assets
Pooled cash and investments
Receivables:
Interest
Special assessments
Restricted assets
Cash and investments with fiscal agents
Total assets
Liabilities and fund balance
Liabilities
Accounts payable and accrued liabilities
Fund balance
Restricted for Open Space Preservation
Restricted for debt service
Total fund balance
Total liabilities and fund balance
See notes to financial statements.
3
OSPD
$ 691815819
15,339
32,048
235
$ 692295441
$ 28,286
6,200,920
235
6,201,155
$ 69229,441
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 309 2016
Revenues
Special assessments
Investment income
Other Revenues
Total revenues
Expenditures
Current:
Open Space Preservation
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Transfers to other funds of the City of Santa Clarita
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
See notes to financial statements.
OSPD
$ 292735751
98,711
86,655
2,459,117
420,439
506,804
927,243
1,531,874
(293035460)
(771,586)
6,972,741
$ 632015155
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE I — ORGANIZATIONAND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: On July 17, 2007, the City of Santa Clarita (the City) established the Santa Clarita Open Space
Preservation District (the District) pursuant to the provisions of the Landscape and Lighting Act of 1972, being
Part 2 of Division 15 of the California Street and Highway Code. The purpose of the District is to fund a portion
of the City's open space, park and parkland program consisting of the acquisition, preservation, improvement,
servicing, financing and maintenance of open -space land, parks and parkland, and appurtenant equipment and
facilities, including the payment of debt service, of benefit to the property within the District. Facilities include,
but are not limited to, open -space land, parks, parklands, the Santa Clarita River Watershed, trail systems and
wildlife corridors. These are financed by special assessments levied on parcels within the City boundaries. The
boundaries of the District are the same as the boundaries of the City. The City established the Open Space
Preservation District Special Revenue Fund (Fund) to account for the activities of the District. The City has title
of the constructed assets within the boundaries of the District. Any debt issued for activities of the District are
issued in the name of the City.
Basis of presentation: The Fund's statements are prepared in conformity with accounting principles generally
accepted in the United States of America (U.S. GAAP). The Fund is presented as a Special Revenue Fund of the
City. The Governmental Accounting Standards Board (GASB) is the acknowledged standard-setting body for
establishing accounting and financial reporting standards followed by governmental entities in the United States.
The financial statements were prepared from only the accounts of the Fund and, therefore, do not present the
financial position or results of operations of the City and changes in financial position thereof for the year then
ended in conformity with generally accepted accounting principles in the United States of America.
Fund financial statements: Governmental fund financial statements include a balance sheet and a statement of
revenues, expenditures, and changes in fund balance.
The Fund is accounted for on a spending or "current financial resources" measurement focus and the modified
accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance
sheet. The statement of revenues, expenditures, and changes in fand balance present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in the fund balance. The primary
revenue sources are special assessments and interest revenue. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available to finance
expenditures of the current period. Revenues are considered available if they are collected within 90 days of the
end of the current fiscal period, except for special assessments, which are within 60 days.
Expenditures are recorded in the accounting period in which the related fund liability is incurred. However, debt
service expenditures are recorded only when payment is due.
Pooled cash and investments: The Fund's cash and investments balance was pooled with various other City
funds for deposit and investment purposes. The City's treasury is responsible for the cash management of the
Fund's cash balance, which pools available cash for investment purposes. The cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturities of three
months or less from the date of acquisition. Each City fund owns a share of pooled cash and investments, which
are separately maintained, and interest income was apportioned based on its average month-end cash balances to
the total of the pooled cash and investments.
5
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 1— ORGANIZATIONAND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Special assessments: Special assessment taxes are attached as enforceable liens on real property on July 1, the
beginning of the fiscal year, and are due in two installments on November 1 and February 1; however, no
penalties or interest are assessed until December 10 and April 10, respectively. These taxes are determined
annually based on property values, subject to limits based on Proposition 13, as of January 1 of the levy year,
which is prior to the end of the previous fiscal year. The County of Los Angeles bills and collects these taxes for
the District and are remitted on a monthly basis.
Fund Balance
Fund financial statements: In the Fund's financial statements, fund balance is classified as follows:
Restricted: Restricted fund balances encompass the portion of net fund resources subject to externally
enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through
debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions
imposed by law through constitutional provisions or enabling legislation. Expenditures as they are
incurred are applied against restricted fund balance.
Use of estimates: The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions. These
estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ
from these estimates and assumptions.
NOTE 2 — CASHAND INVESTMENTS
The Fund's pooled cash and investments at June 30, 2016 was $6,181,819. Additionally, the fund held $235 of
restricted cash and investments with fiscal agent.
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment Risk
Disclosures, as they relate to the pooled cash and investments, are reported in the annual report of the City. The
pooled cash and investments are unrated, and average maturity is 30 days or less.
The Fund recognizes its position in the City investment pool at fair value based on information provided by the
City. Deposits and withdrawals to the pool are made on the basis of $1 and not fair value. Accordingly, the
measurement of fair value of the Fund's investment in the City Investment Pool is based on uncategorized inputs
not defined as Level 1, Level 2, or Level 3. Additional information regarding interest rate risk, concentration of
credit risk, custodial credit risk and fair value measurements of the City's pooled cash and investments is
presented in the City's Comprehensive Annual Financial Report.
C
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 309 2016
NOTE 3 — TRANSFERS TO OTHER FUNDS OF THE CITY OF SANTA CLARITA
Transfers to other funds of the City of Santa Clarita of $2,303,460 include $2,282,478 of transfers to the City's
Public Financing Authority's capital project fund. These funds are related to the debt service of $848,451 on the
City's refunded Certificates of Participation Series 2007 and $1,434,027 released from the Series 2007 reserve
account for the new Lease Revenue Bond Series 2016B. Additional transfers to the City's General Fund totaling
$20,982 were for other post employment employee benefits and personnel costs paid for by the General Fund.
The City's Public Financing Authority issued the Lease Revenue Bonds Series 2016B in June 2016. As of
June 30, 20169 $14,020,000 was outstanding. Revenues from the Fund are pledged for repayment of the bonds,
but the City is not obligated to require additional amounts from the Fund in event the revenues of the fund are
insufficient for bond repayment.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 309 2016
Other financing uses
Transfers to other funds of the City of
Santa Clarita (8545638) (869,433) (2,303,460) (114349027)
Net change in fund balance $ 836,848 $ (758.868) (771,586) $ (12.718)
Fund balance, beginning of year 619729741
Fund balance, end of year $ 6,201,155
See note to required supplementary information.
8
Variance with
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenues
Special assessments
$ 292719466
$ 2,271,466
$ 2,2735751
$ 2,285
Investment income
2,892
2,892
98,711
95,819
Charges for services
109000
52,260
86,655
34,395
Total assets
2,284,358
2,326,618
2,459,117
132499
Expenditures
Operating:
Personnel
1799592
178,542
179,182
(640)
Operating
303,560
335,471
231,537
103,934
Capital outlay
9,720
1,602,040
497,736
1,104,304
Capital improvement projects:
Operating
1009000
100,000
18,788
81,212
Total expenditures
5929872
252169053
9279243
1,288,810
Excess (deficiency) of revenues
over (under) expenditures
1,6919486
110,565
1,531,874
1421,309
Other financing uses
Transfers to other funds of the City of
Santa Clarita (8545638) (869,433) (2,303,460) (114349027)
Net change in fund balance $ 836,848 $ (758.868) (771,586) $ (12.718)
Fund balance, beginning of year 619729741
Fund balance, end of year $ 6,201,155
See note to required supplementary information.
8
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 309 2016
Budgetary Information
Annual budgets are adopted on a basis consistent with U.S. GAAP for all governmental funds, except that
encumbrances are shown in the year incurred for budgetary purposes. All annual appropriations lapse at fiscal
year-end.
On or before the last day in January of each year, all operational units submit requests for appropriations to the
city manager for budget preparation purposes. Before April 30, the proposed budget is presented to the City
Council for review. The City Council holds public hearings and a final budget must be prepared and adopted no
later than June 30.
The appropriated budget is prepared by fund, category and department at the category level. The City reports the
following categories: personnel, operating and capital outlay. Additionally, the City separately prepares a capital
improvement projects budget. The City's Department Heads, with approval of the City Manager, may make
transfers of appropriations within certain line -items within a program, but may not exceed the total appropriated
amounts for each category. The City Manager may approve transfers that do no change the total appropriated
amount within the fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally
exceed appropriations) is the category.
Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded
to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of
formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances
outstanding at year-end are reported as restricted fund balance. Unexpended appropriations lapse at year-end.
For the year ended June 30, 2016, expenditures exceeded appropriations in the category level (legal level of
budgetary control) as noted below:
Excess
Expenditures
over
Description Appropriations Expenditures Appropriations
Operating - Personnel $ 178,542 $ 1799182 $ (640)
Transfers to other funds of the City of Santa Clarita 8699433 293039460 (19434,027)
Expenditures are in excess of appropriations due to additional transfers out related to the release of the
Certificates of Participation Series 2007 reserve account for the debt refunding for the City's Lease Revenue
Bonds 2016B in June 2016, as well as increased personnel costs.
I2.1
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
We have audited the financial statements of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Santa Clarita, California, (City) for the year
ended June 30, 2016. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform
Guidance, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to you dated June 24, 2016. Professional standards also require that
we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. As described in
Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board (GASB)
Statements No. 72, Fair Value Measurement and Application and No. 82, Pension Issues — An Amendment of
GASB Statements No. 67, No. 68, and No. 73, as of July 1, 2015. We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The
most sensitive estimates affecting the City's financial statements were:
Management's estimate of the:
• The measurement of fair value of investments is based on observable market inputs and
information from the City's safekeeping custodian banks,
• Amounts related to the City's other postemployment benefit (OPEB) asset are based on
actuarial valuations,
• Amounts related to the net pension liability, deferred outflows of resources and deferred
inflows of resources, pension expense, and the related disclosures, are based on actuarial
valuations.
We evaluated the key factors and assumptions used to
develop these
estimates in determining
that they
appeared
reasonable in relation to the financial statements taken
as a whole.
1
10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 Tel: 909.466.4410 www.vtdcpa.com Fax: 909.466.4431
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosures affecting the financial statements were:
Note 2 to the financial statements, discloses authorized investments, interest rate and credit risks,
and fair value measurements.
Note 8 to the financial statements, discloses the advance refunding of the City's Lease Revenue
Bonds Series 2007 and Certificates of Participation, Series 2007. In accordance with generally
accepted accounting principles, the difference between the reacquisition price of the refunded
bonds and the carrying amount of the refunded bonds is being deferred and amortized as a
component of interest expense over the remaining life of the refunded bonds.
Note 13 to the financial statements, discloses the City's agent -multiple employer pension plan's
net pension liability, and related deferred inflows and outflows of resources, and pension expense.
The valuation of the net pension liability and related deferred inflows and outflows are sensitive
to the underlying actuarial assumptions used, including but not limited to, the investment rate of
return and discount rates. As disclosed in Note 13, a 1% increase or decrease in the discount rate
has a material effect on the City's net pension liability.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit
Corrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. Refer to Attachment A for adjustments identified as part of the
audit and corrected by management.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 21, 2016.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
K
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Other Matters
We applied certain limited procedures to management's discussion and analysis, schedule of revenues,
expenditures and changes in fund balance — budget and actual for the General fund and each major special
revenue fund, schedule of funding progress, schedule of changes in the City's net pension liability and related
ratios, and schedule of contributions, which are required supplementary information (RSI) that supplements the
basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund financial statements budgetary
comparison schedules and the schedule of expenditures of federal awards, which accompany the financial
statements but are not RSI. With respect to this supplementary information, we made certain inquiries of
management and evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of America, the method
of preparing it has not changed from the prior period, and the information is appropriate and complete in relation
to our audit of the financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the financial
statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on
it.
Restriction on Use
This information is intended solely for the use
of the City Council and management
of the City and is not
intended to be, and
should not be, used by anyone
other than these specified parties.
Rancho Cucamonga, California
December 21, 2016
3
CITY OF SANTA CLARITA
SCHEDULE OF CORRECTED MISSTATEMENTS
JUNE 309 2016
ATTACHMENT A
<t> Transit Enterprise Fund
Dr.
Deferred Inflows of Resources
$ 171,140
Income Statement
I
Balance Sheet
Number
Fund
AccountNescri
tion
Dr. Cr.
Dr. Cr.
<t> Transit Enterprise Fund
Dr.
Deferred Inflows of Resources
$ 171,140
Transit Enterprise Fund
Dr.
Deferred Outflows of Resources
$ 171,140
Interval Service Foods (Governmental Activities)
Dr.
Deferred Inflows of Resources
17,885
Interval Service Foods (Governmental Activities)
Dr.
Deferred Outflows of Resources
17,885
Govemmental Activities
Dr.
Deferred Inflows of Resources
4,680,700
Governmental Activities
Dr.
Deferred Outflows of Resources
4,680,700
To adjust deferred inflows and outflows related to differences between projected and actual
investment earnings arising in different measurem entpertods, which should be aggregated and
reported as a net deferred inflow as of June 30, 1016.
<2> Redevelopment Successor Agency -PPTF Dr. Interest Expense $ 405,717
Redevelopment Successor Agency -PPTF Cr. Interest Payable 405,717
To accrue interest payable within Me Successor Agency Private -purpose Trust Pundfor am aunts
due as of June 30, 2016.
<3> Developer Fees Special Revenue Fund Dr. Accounts Payable 1,242,645
Developer Fees Special Revenue Fund Cr. Cash and Investments 1,242,645
To reverse accrual for check batch that was voided subsequent to payment, but not properly
reversed from Accounts Payable and Cash and Investments.