HomeMy WebLinkAbout2019-01-22 - AGENDA REPORTS - FY 2017-18 COMPREHENSIVE ANNUAL FINANCIAL REPORT A (2)4
Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: January 22, 2019
SUBJECT: FISCAL YEAR 2017-18 COMPREHENSIVE ANNUAL FINANCIAL
REPORT AND OTHER RELATED REPORTS
DEPARTMENT: Administrative Services
PRESENTER: Carmen Magana
RECOMMENDED ACTION
City Council approve the Comprehensive Annual Financial Report (CAFR) and other related
reports for fiscal year ending June 30, 2018.
BACKGROUND
The City of Santa Clarita's (City) independent audit firm, Vavrinek, Trine, Day & Co., LLP, has
completed the City's annual audit for fiscal year ending June 30, 2018. 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 CAFR reflects the City's strong financial condition with a healthy 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, 2018.
In accordance with Generally Accepted Auditing Standards (AU-
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.
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In addition, the following reports were prepared for the fiscal year ending June 30, 2018, 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
Appropriations Limit Calculation 06-30-18 (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)
Comprehensive Annual Financial Report 06-30-18 (available in the City Clerk's Reading File)
Single Audit Report 06-30-18 (available in the City Clerk's Reading File)
Transit Enterprise Fund 06-30-18 (available in the City Clerk's Reading File)
Air Quality Improvement Fund 06-30-18 (available in the City Clerk's Reading File)
Open Space Preservation District 06-30-18 (available in the City Clerk's Reading File)
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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, 2018
INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES
RELATED TO THE ARTICLE XIII-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, which were agreed to by the City of Santa Clarita,
California (City) (the specified party), to the Appropriations Limit Calculation of the City prepared in accordance
with Article XIII-B of the California Constitution for the fiscal year ended June 30, 2018. The City’s
management is responsible for the Appropriations Limit Calculation. The sufficiency of the procedures is solely
the responsibility of the City. 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 associated findings are as follows:
1.We obtained the completed worksheets setting forth the calculations necessary to establish the City’s
appropriation limit and compared the 2017-2018 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 found as a result of this procedure.
2.We added last year’s limit to the annual adjustment amount and compared the resulting amount to the
2017-18 appropriations limit.
Findings: No exceptions were found as a result of this procedure.
3.We compared the current year information to the worksheets described in No. 1 above.
Findings: No exceptions were found as result of this procedure.
4.We compared the prior year appropriations limit to the prior year appropriations limit adopted by the City
Council.
Findings: No exceptions were found as result of this procedure.
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This agreed-upon procedures engagement was conducted in accordance with attestation standards established by
the America Institute of Certified Public Accountants. We were not engaged to, and did not conduct an
examination or review, the objective of which would be the expression of an opinion or conclusion, respectively,
on the City’s Appropriations Limit Calculation. Accordingly, we do not express such an opinion or conclusion.
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-B of the California Constitution.
This report 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 27, 2018
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CITY OF SANTA CLARITA, CALIFORNIA
ATTACHMENT A – APPROPRIATIONS LIMIT CALCULATIONS
JUNE 30, 2018
AmountSource
A.Appropriations Limit FY 2016-2017$ 360,821,480Prior year appropriations limit
adopted by the City
B.Calculation Factors:
1Population Increase % State Department of Finance1.02970
2 Inflation Increase % State Department of Finance1.03690
3Total Adjustment % (B.1 x B.2)1.06770
C.Annual Adjustment Increase24,426,145\[(B.3-1)xA)\]
D.OtherAdjustments:
1Loss Responsbility ( - ) -
2Transfer to Private ( - ) -
3Transfer for Fees ( - ) -
4Assumed Responsbility ( + ) -
-
E.Total Adjustments 24,426,145(C+D)
F.Appropriations Limit FY 2017-2018$ 385,247,625(A+E)
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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, 2018. 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 April 30, 2018. Professional standards also require that
we communicate to you the following information related to our audit.
Significant Audit Matters
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. 74,
Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions, and No. 85, Omnibus 2017, effective
July 1, 2017. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is
reported in Note 22. Further, as described in Note 22 to the financial statements, the City restated beginning net
position to properly state capital assets and revenues as of July 1, 2017. 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 net pension and other postemployment benefit (OPEB) liabilities,
deferred outflows of resources and deferred inflows of resources, pension and OPEB
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.
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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 12 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 12, a 1% increase or decrease in the discount rate
has a significant effect on the City’s net pension liability.
Note 13 to the financial statements discloses the City’s net OPEB liability, and related deferred
inflows and outflows of resources, and OPEB expense. The valuation of the net OPEB 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, discount rates and healthcare cost
trend rates. As disclosed in Note 13, a 1% increase or decrease in the discount rate or the
healthcare cost trend rates has a significant effect on the City’s net OPEB 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.
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 27, 2018.
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.
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.
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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 changes in the Net OPEB liability and related ratios and schedule of contributions, and
schedule of money weighted rate of return for the City’s OPEB plan, and the schedule of changes in the City’s net
pension liability and related ratios and schedule of contributions for the City’s pension plan, 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 27, 2018
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Quality of Life
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comprehensive annual
Fiscal Year ended June 30, 2018
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
PREPARED BY THE DEPARTMENT OF ADMINISTRATIVE SERVICES
CITY OF SANTA CLARITA, CALIFORNIA
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................... i
GFOA Certificate of Achievement for Excellence in Financial Reporting .................................... ix
Officials of the City of Santa Clarita ............................................................................................... x
Organizational Chart ....................................................................................................................... xi
Map of the City of Santa Clarita .................................................................................................... xii
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 Funds Financial Statements:
Balance Sheet ........................................................................................................ 18
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ......................................................................... 20
Statement of Revenues, Expenditures and Changes in
Fund Balances ..................................................................................................... 21
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the
Statement of Activities ........................................................................................ 23
Proprietary Funds Financial Statements:
Statement of Net Position ..................................................................................... 24
Statement of Revenues, Expenses and Changes in Net Position .......................... 25
Statement of Cash Flows ...................................................................................... 26
Fiduciary Funds 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 30, 2018
TABLE OF CONTENTS
FINANCIAL SECTION (CONTINUED)
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
General Fund .................................................................................................................... 80
Bridge and Thoroughfare Special Revenue Fund ............................................................ 81
Developer Fees Special Revenue Fund ............................................................................ 82
Public Library Special Revenue Fund ............................................................................. 83
Landscape Maintenance District #1 Special Revenue Fund ............................................ 84
Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................ 85
Schedule of Contributions - OPEB ................................................................................................ 86
Schedule of Money Weighted Rate of Return - OPEB .................................................................. 87
Schedule of Changes in the City’s Net Pension Liability and Related Ratios ............................... 88
Schedule of City Contributions - Pensions .................................................................................... 89
Notes to Required Supplementary Information ............................................................................. 91
SUPPLEMENTARY INFORMATION
Non-major Governmental Funds:
Description of Non-major Governmental Funds ..................................................................... 93
Combining Balance Sheet ........................................................................................................ 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............. 104
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Bikeway Special Revenue Fund ............................................................................................ 112
Gas Tax Special Revenue Fund ............................................................................................. 113
Proposition A Special Revenue Fund .................................................................................... 114
Special Assessment Special Revenue Fund ........................................................................... 115
Street Lighting District Special Revenue Fund ..................................................................... 116
Measure M Local Return Special Revenue Fund .................................................................. 117
SB1 Road Repair and Activity Special Revenue Fund .......................................................... 118
State Park Special Revenue Fund .......................................................................................... 119
Transportation Development Act 8 Special Revenue Fund ................................................... 120
Traffic Safety Special Revenue Fund .................................................................................... 121
Community Development Block Grant Special Revenue Fund ............................................ 122
Air Quality Management District Special Revenue Fund ..................................................... 123
Stormwater Special Revenue Fund ........................................................................................ 124
Surface Transportation Program Special Revenue Fund ....................................................... 125
BJA Law Enforcement Special Revenue Fund ...................................................................... 126
Supplemental Law Grant Special Revenue Fund .................................................................. 127
HOME Special Revenue Fund ............................................................................................... 128
Library Facilities Fees Special Revenue Fund ...................................................................... 129
Public Education and Government Special Revenue Fund ................................................... 130
Proposition C Special Revenue Fund .................................................................................... 131
Federal Grants Special Revenue Fund ................................................................................... 132
Measure R Special Revenue Fund ......................................................................................... 133
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
FINANCIAL SECTION (CONTINUED)
Tourism Marketing District Special Revenue Fund .............................................................. 134
Open Space Preservation District Special Revenue Fund ..................................................... 135
Miscellaneous Grants Special Revenue Fund ........................................................................ 136
Park Dedication Special Revenue Fund ................................................................................ 137
Housing Successor Agency Special Revenue Fund .............................................................. 138
Tourism Marketing Bureau Special Revenue Fund ............................................................... 139
General Capital Projects Fund ............................................................................................... 140
Public Financing Authority Capital Projects Fund ................................................................ 141
Public Financing Authority Debt Service Fund ..................................................................... 142
Internal Service Funds:
Description of Internal Service Funds ................................................................................... 143
Combining Statement of Net Position ................................................................................... 144
Combining Statement of Revenues, Expenses and Changes in Net Position ........................ 145
Combining Statement of Cash Flows .................................................................................... 146
Agency Funds
Description of Agency Funds ................................................................................................ 147
Combining Statement of Assets and Liabilities ..................................................................... 148
Combining Statement of Changes in Assets and Liabilities .................................................. 150
STATISTICAL SECTION
Table of Contents .............................................................................................................. 153
Net Position by Component .................................................................................................. 154
Changes in Net Position ......................................................................................................... 156
Fund Balances of Governmental Funds ................................................................................ 160
Changes in Fund Balances of Governmental Funds .............................................................. 162
Assessed Values and Actual Values of Taxable Property ..................................................... 164
Assessed Values and Actual Values of Taxable Property—Redevelopment Agency .......... 166
Assessed Values—Taxable Property ..................................................................................... 168
Assessed Values—Use Category Summary .......................................................................... 170
Direct and Overlapping Property Tax Rates .......................................................................... 171
Principal Property Taxpayers ............................................................................................... 173
Property Tax Levies, Tax Collections and Delinquencies .................................................... 174
Top Property Owners Based on Net Values—Successor Agency ......................................... 175
Project Area Assessment Appeals Summary and
Tax Collection History—Successor Agency ...................................................................... 176
Charge Detail Report for CFD 2002-1 (Valencia Town Center)—Successor Agency ......... 177
Ratio of Outstanding Debt by Type ...................................................................................... 179
Ratio of General Bonded Debt Outstanding .......................................................................... 181
CITY OF SANTA CLARITA, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
STATISTICAL SECTION (CONTINUED)
Direct and Overlapping Tax and Assessment Debt .............................................................. 182
Legal Debt Margin Information ............................................................................................ 183
Pledged Revenue Coverage ................................................................................................... 185
Demographic and Economic Statistics ................................................................................. 186
Principal Employers .............................................................................................................. 187
Full-Time and Part-Time City Employees by Function ....................................................... 188
Operating Indicators by Function ......................................................................................... 189
Capital Asset Statistics by Function ..................................................................................... 190
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v
vi
vii
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OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2018
City Council
Laurene Weste MAYOR
Marsha McLean MAYOR PRO TEM
Cameron Smyth COUNCILMEMBER
Bill Miranda COUNCILMEMBER
Bob Kellar COUNCILMEMBER
City Officials
Ken Striplin CITY MANAGER
Frank Oviedo ASSISTANT CITY MANAGER/ INTERIM DIRECTOR
OF RECREATION AND COMMUNITY SERVICES
Darren Hernández DEPUTY CITY MANAGER
Joseph Montes CITY ATTORNEY
Carmen Magana DIRECTOR OF ADMINISTRATIVE SERVICES
Tom Cole DIRECTOR OF COMMUNITY DEVELOPMENT
Robert Newman DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
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ORGANIZATION CHART
As of June 30, 2018
Santa Clarita Residents
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City Council
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City Manager
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AdministrativeNeighborhoodCommunityRecreation andCity Manager'sPublic
ServicesServicesDevelopmentCommunity ServicesOfficeWorks
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FinanceEnvironmental ServicesCommunity PreservationArts and EventsCommunicationsBuilding and Safety
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Clerk and Contract ServicesParksEconomic DevelopmentRecreation and Community ServicesHuman ResourcesCapital Improvement Program
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Technology ServicesSpecial DistrictsPlanningOpen SpaceIntergovernmental RelationsEngineering Services
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TransitSheriff's DepartmentGeneral Services
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Public LibraryFire ProtectionTraffic & Transportation Planning
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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, 2018, 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 auditors’ 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.
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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, 2018, 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 13 to the financial statements, the City adopted Governmental Accounting Standards Board
(GASB) Statements No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, No.
75,Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, and No. 85, Omnibus
2017, effective July 1, 2017. This resulted in a restatement of beginning net position as disclosed in Note 22 to the
financial statements. Our opinion is not modified with respect to this matter.
As described in Note 22 to the financial statements, the City restated beginning net position as of July 1, 2017 for
capital assets that the City identified as the City’s capital assets, which were transferred from the Redevelopment
Successor Agency.
Also, as described in Note 22 to the financial statements, the City restated beginning net position as of July 1, 2017
in the Transit Fund related to the recognition of Proposition C (MOSIP) revenue and the closing out of expenditures
related to construction in progress in the proper period.
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 and related notes (pages 80 through 84 and 91
through 92), schedule of changes in the net OPEB liability and related ratios (page 85), schedule of contributions –
OPEB (page 86), schedule of money weighted rate of return (page 87), schedule of changes in the City’s net pension
liability and related ratios (page 88), and schedule of city contributions - pensions (pages 89 through 90) 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 funds 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.
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The combining and individual nonmajor funds 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 funds 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 27, 2018, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Rancho Cucamonga, California
December 27, 2018
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2018
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, 2018. 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 $1.17
billion. Of this amount, $84.3 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 $45.6 million. Net position of the business-type activities
decreased by $2 million, and the net position of the governmental activities increased by $47.6
million (Table 2).
The net capital assets of the City’s governmental activities increased by $39.7 million, or 4.4%
over last fiscal year. The increase was in part due to purchases, contributions and annexations of
land and infrastructure totaling $20 million, and the increase of construction in progress of $19.8
million. See Note 6 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 $256 million. This represents an increase of $22.9 million as compared to the
prior year.
Within governmental funds, the General Fund reported a fund balance of $148.2 million.
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) as well as all liabilities (including long-term debt).
4
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
ts.
various financial statemen
In addition to the basi
c 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, neighborhood services, community services, and community development (planning). 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.
5
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 34 governmental funds. The General
Fund, Bridge and Thoroughfare Fund, Developer Fees Fund, Public Library Fund and Landscape
Maintenance District #1 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 29 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
al statements provide separate information for
and the Statement of Activities. The proprietary fund financi
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.
6
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 money weighted rate of return, schedule of changes
in the City’s net pension and OPEB liability and related ratios, and a schedule of the City’s pension and
OPEB 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 $45.6 million, increasing from $1.13 billion to $1.17 billion.
7
THE CITY AS A WHOLE (CONTINUED)
TABLE 1
CITY OF SANTA CLARITA’S NET POSITION
Governmental ActivitiesBusiness-type ActivitiesTotal
201820172018201720182017
ASSETS:
Current and Other Assets$ 295,634,881 $ 287,793,027 $ 3,510,135 $ 7,525,050 $ 299,145,016 $ 295,318,077
Capital assets, net 939,065,412 899,324,125 79,199,471 79,589,102 1,018,264,883 978,913,227
Noncurrent Assets35,691,681 25,568,478 - - 35,691,681 25,568,478
TOTAL ASSETS1,270,391,974 1,212,685,630 82,709,606 87,114,152 1,353,101,580 1,299,799,782
DEFERRED OUTFLOWS OF RESOURCES:
21,318,027 12,766,476 714,266 399,450 22,032,293 13,165,926
LIABILITIES:
Noncurrent Liabilities 148,103,367 118,556,662 1,904,484 1,415,876 150,007,851 119,972,538
Other Liabilties46,479,473 45,694,038 3,092,645 7,644,191 49,572,118 53,338,229
TOTAL LIABILITIES 194,582,840 164,250,700 4,997,129 9,060,067 199,579,969 173,310,767
DEFERRED INFLOWS OF RESOURCES: 3,628,833 1,841,246 115,590 6 7,065 3,744,423 1,908,311
NET POSITION:
Net investment in
capital assets895,056,642 867,144,998 79,199,471 79,589,102 974,256,113 946,734,100
Restricted 113,286,626 87,272,724 - -113,286,626 87,272,724
Unrestricted85,155,060 104,942,438 (888,318) (1,202,632) 84,266,742 103,739,806
TOTAL NET POSITION1,093,498,328 1,059,360,160 78,311,153 78,386,470 1,171,809,481 1,137,746,630
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, 2018, assets exceeded liabilities by $1.15 billion. The largest component of the City’s net
position, 83.1%, is represented by its $974 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, 9.7%, represents resources subject to external restrictions
on how they may be used. The remaining 7.2% of unrestricted net position, $84.3 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 $47.6 million over the prior year. The unrestricted net position of the
business-type activities increased by $314,314.
8
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities decreased by $3.1 million. The cost of all governmental activities
this year was $148 million, an increase of 7.1% over the past year. As shown in the Statement of
Activities, the governmental activities expenses were ultimately financed in part by the taxpayers, as
$64.5 million in revenues were generated by service revenues received from the performance of these
activities; another $9.3 million was received from government agencies and other organizations that
subsidized certain programs with operating grants and contributions; and another $32 million in revenues
was generated from capital grants and contributions. Overall, the City’s governmental program and
general revenues amounted to $202 million, which funded the expenses and resulted in a $47.6 million
increase in net position.
TABLE 2
CITY OF SANTA CLARITA’S CHANGES IN NET POSITION
Governmental ActivitiesBusiness-type ActivitiesTotal
201820172018201720182017
Program Revenues:
Charges for services $ 64,527,732 $ 52,664,081 $ 6,987,488 $ 7,231,136 $ 71,515,220 $ 59,895,217
Operating grants and contributions 9,259,079 5,977,971 10,226,946 8,459,236 19,486,025 14,437,207
Capital grants and contributions 31,807,581 55,220,052 3,102,269 9,138,643 34,909,850 64,358,695
General Revenues:
Taxes:
Property taxes42,284,749 39,924,749 42,284,749 39,924,749
Other taxes 50,747,716 49,415,366 50,747,716 49,415,366
Other3,264,028 1,801,478 18,996 24,488 3,283,024 1,825,966
Total Revenues 201,890,885 205,003,697 20,335,699 24,853,503 222,226,584 229,857,200
General government53,928,438 44,390,099 - -53,928,438 44,390,099
Public safety27,232,724 25,231,712 - -27,232,724 25,231,712
Recreation and community services23,472,469 23,563,825 - -23,472,469 23,563,825
Public works14,771,925 16,224,154 - -14,771,925 16,224,154
Community development6,957,438 7,057,301 - - 6,957,438 7,057,301
Neighborhood Services1,082,836 1,815,637 - - 1,082,836 1,815,637
Unallocated infrastructure depreciation19,259,333 18,833,113 - -19,259,333 18,833,113
Interest and fiscal charges1,638,960 1,378,888 -- 1,638,960 1,378,888
Transit - -28,309,870 29,858,499 28,309,870 29,858,499
Total Expenses 148,344,123 138,494,729 28,309,870 29,858,499 176,653,993 168,353,228
Increase/Decrease in Net Postion Before Transfers53,546,762 66,508,968 (7,974,171) (5,004,996) 45,572,591 61,503,972
Transfers(5,924,278) (3,602,443) 5,924,278 3,602,443 - -
Changes in Net Position47,622,484 62,906,525 (2,049,893) (1,402,553) 45,572,591 61,503,972
Net Position – Beginning of Year1,059,360,160 996,453,635 78,386,470 79,789,023 1,137,746,630 1,076,242,658
Restatements (13,484,316) -1,974,576(11,509,740) -
Net Position – Beginning of Year, as restated1,045,875,844 996,453,635 80,361,046 79,789,023 1,126,236,890 1,076,242,658
Net Position – End of Year$ 1,059,360,160 1,093,498,328 $ 78,311,153 $ $ 78,386,470 $ 1,137,746,61,171,809,481 $30
Business-Type Activities
Business-type activities decreased the City’s net position by $2 million for the current year. Business-type
activities revenues decreased by $4.5 million during the year for a total of $20.3 million in revenues,
excluding the $5.9 million of transfers in from other governmental activities. The decreased revenue was
largely due to a decrease in capital grants and contributions of $6 million. Related transit activity
expenses decreased by $1.5 million.
9
THE CITY’S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $256
million, an increase of $22.9 million over the prior year. Approximately $113 million is restricted and
already committed for specific restricted purposes.
The total governmental fund balance includes the general fund balance of $148 million. The General
Fund is the chief operating fund of the City of Santa Clarita. The unassigned fund balance of $47 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 11 to the financial statements.
Other major fund balance changes are noted below:
The Bridge and Thoroughfare Fund has realized an increase of $2.4 million in its fund balance
from prior year.
The Developer Fee Fund has realized a decrease of $497,659 due to a decrease in developer
contributions.
The Public Library Fund has realized an increase of
$1.4 million in its fund balance from the prior
year.
The Landscape Maintenance District’s fund balance increased by $3.3 million from the prior year.
In addition to the major funds, the fund balances for the other governmental funds experienced an
aggregate increase of $17.2 million, of which approximately $15 million is attributed to the issuance of
2018 Series A and B Revenue and Taxable Revenue bonds for the Streetlights acquisition and retrofit
program.
TheCity’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 $2 million. The unrestricted portion of the business-type activities net position increased by
$314,314 from the prior year.
The Internal Service Funds net position increased by $663,008 or 7.6%. The ending fund balance for
Internal Service Funds is $9.4 million, of which $8 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2017-2018 original (adopted) general fund budgeted expenditures and
transfers of $104.8 million to the final budgeted expenditures of $134.2 million results in a net increase of
$29.4 million.
Included in this net increase is $3,183,704 committed purchase orders and contracts from the prior June
30 balance, as well as $4,052,822 of prior fiscal year operating and capital improvement projects
approved for carryover into fiscal year 2017-2018.
10
THE CITY’S FUNDS (CONTINUED)
Original Budget Continued Encumbrances Beg. Balance + Supplemental Final Budget
+ Appropriations + =Changes =
$104,757,017 + $4,052,822 + $3,183,704 = $111,993,543 + $22,189,808 = $134,183,351
Comparing the beginning budget of $112 million with the final budget of $134.2 million indicates the
General Fund had supplemental budgetary appropriations of $22.2 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 an increase of $1,813,067.
Included in the increase is $758 thousand in development revenues, $300 thousand in property tax, $300
thousand in sales tax, and $1 million transfers in from Self Insurance Fund.
At year-end, the City’s actual general fund revenues were $1.5 million more than the final budgetary
estimates. Actual general fund expenditures were less than the final budgetary estimates by $9.5 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City had $1.02 billion (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, 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 ActivitiesBusiness Type Activities
Total
201820172018201720182017
Land$172,876,636$162,971,944 $ 15,087,880 $ 15,087,880 $187,964,516$178,059,824
Construction in progress52,656,78732,869,119 2,807,217 1,736 $55,464,004$32,870,855
$628,220,571$616,639,481
Infrastructure, net628,220,571616,639,481 - -
$39,617,372$40,344,769
Depreciable site improvements, net30,507,90830,667,0849,109,464 9,677,685
Depreciable building and
$79,074,288$81,409,275
improvements, net50,399,56851,851,20928,674,720 29,558,066
$27,924,132$29,589,024
Depreciable equipment, net4,403,9424,325,28923,520,190 25,263,735
TOTALS$939,065,412$899,324,12679,199,471 79,589,102$1,018,264,883$978,913,228
Majorcapital asset events during the year included:
Acquisitions, contributions and annexations of land totaling $9.9 million
Infrastructure additions totaling $27 million.
Additional information on the City of Santa Clarita’s capital assets can be located in Note 6 to the financial
statements.
11
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Debt Administration
At year-end, the City’s total debt amounted to $50.2 million in bonds, notes, capital leases, contracts,
claims payable and compensated absences as shown in Table 4. A summary of debt activity for the year
follows.
TABLE 4
CITY OF SANTA CLARITA’S OUTSTANDING DEBT
Governmental ActivitiesBusiness-type ActivitiesTotal
201820172018201720182017
Revenue and Taxable Revenue Bonds15,848,271 - - - 15,848,271 -
Lease Revenue Bonds 24,532,56025,262,456 - - 24,532,56025,262,456
Contract and Leases 32,200 6 0,444 - - 32,200 6 0,444
Private Placement Lease 3 ,595,7404,984,543 - - 3,595,740 4,984,543
Loans- 1 00,000 - - - 100,000
Compensated Absences 3 ,303,7893,486,115 7 5,637 8 4,8933,379,426 3,571,008
Claims Payable2,775,2293,190,756 - - 2,775,229 3,190,756
TOTAL 50,087,789$ $ 37,084,314$ 75,637.00$ 84,893.00$ 50,163,426$ 37,169,207
The City’s governmental activities had $50 million in debt at year-end. Governmental activities long-term
debt increased overall by $13 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, 2018, 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, 2018 was
$1,152,275,453. 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 7 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 33% or $37 million as projected in the 2018-2019 budget.
Property tax revenues account for 32% of the General Fund budget or $35.5 million in 2018-
2019. 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.
Total General Fund expenditures are projected to be $110.4 million, resulting in a balanced budget, an
operating surplus of $396K, and a 20% operating reserve of $16.9 million. The City’s 2018-2019
operating and capital budget for all funds is $227 million.
The City remains dedicated to service excellence, teamwork and creativity. City staff continues to do
more with less, find creative ways to maintain services revered by our community, and provide award-
winning programs. The 2018-2019 budget remains to be a reflection of the City’s commitment to the
residents of Santa Clarita. This is consistent with the City’s long tradition of ensuring that programming for
Santa Clarita’s youth and children is a priority to help promote growth and curb teen crimes. A copy of the
City’s 2018-2019 budget can be obtained by visiting the web at http://www.santa-clarita.com/city-
hall/departments/city-manager-s-office/city-budget.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with
interest in the government’s finances. Questions concerning any of the information provided in this report,
or requests for additional information should be addressed to the City Clerk, City of Santa Clarita, 23920
Valencia Boulevard, #120, Valencia, California 91355.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2018
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Assets:
Current assets:
Cash and investments 275,963,011$ $ 275,963,011-$
Receivables:
Accounts, net 939,986 16,821 956,807
Interest1,305,949 1,437 1 ,307,386
Taxes11,250,053 11,250,053-
Prepaid costs 313,624 14,586 328,210
Due from other governments5,573,696 3,765,853 9,339,549
Internal balances 288,562 (288,562) -
Total Current Assets295,634,881 3,510,135299,145,016
Noncurrent assets:
Restricted assets:
Cash and investments15,799,627 15,799,627-
Cash and investments with fiscal agents 871,961 - 871,961
Loans receivable2,828,034 -2 ,828,034
Land held for resale- - -
Notes to RDA Successor Agency16,192,059 16,192,059-
Capital assets:
Nondepreciable assets225,533,423 17,895,097243,428,520
Depreciable assets, net713,531,989 61,304,374774,836,363
Total Noncurrent Assets974,757,093 79,199,471 1,053,956,564
1,270,391,974 82,709,606 1,353,101,580
Total Assets
Deferred Outflows of Resources:
Deferred outflows related to pensions19,609,987 714,266 20,324,253
Unamortized loss on refundings1,708,040 -1 ,708,040
Total Deferred Outflows of Resources21,318,027 714,266 22,032,293
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities14,024,871 3,032,644 17,057,515
Interest payable 185,513 - 185,513
Deposits payable17,074,061 17,074,061-
Due to other governments7,734,479 -7 ,734,479
Unearned revenues 723,600 - 723,600
Compensated absences2,087,579 60,0012 ,147,580
Claims and judgments1,690,947 -1 ,690,947
Bonds, loans and capital leases2,958,423 -2 ,958,423
Total Current Liabilities46,479,473 3,092,645 49,572,118
Noncurrent liabilities:
Compensated absences1,216,210 15,636 1 ,231,846
Claims and judgments1,084,282 -1 ,084,282
Bonds, loans and capital leases41,050,348 41,050,348-
Developer credits49,626,106 49,626,106-
Net OPEB liability10,061,357 247,41610,308,773
Net pension liability45,065,064 1,641,43246,706,496
148,103,367 1,904,484150,007,851
Total Noncurrent Liabilities
Total Liabilities194,582,840 4,997,129199,579,969
Deferred Inflows of Resources:
Deferred inflows related to OPEB1,401,536 34,464 1 ,436,000
Deferred inflows related to pensions2,227,297 81,126 2 ,308,423
3,628,833 115,590 3 ,744,423
Total Deferred Inflows of Resources
See accompanying notes to financial statements.
14
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CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2018
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Net Position:
Net investment in capital assets895,056,642$$79,199,471$ 974,256,113
Restricted:
Landscape maintenance35,097,112-35,097,112
Lighting district21,862,52521,862,525
Transportation18,125,110-18,125,110
Open Space preservation3,874,488-3,874,488
blic safety2,320,266-2,320,266
Pu
Public library1,624,229-1,624,229
Air quality improvement906,146-906,146
Stormwater5,653,478-5,653,478
P
ublic education and government563,538-563,538
Tourism marketing1,215,748-1,215,748
Low and moderate-incoming housing1,060,423-1,060,423
Capi
tal improvements20,983,563-20,983,563
Unrestricted85,155,060(888,318)84,266,742
Total Net Position$ 1,093,498,328$78,311,153$ 1,171,809,481
See accompanying notes to financial statements.
15
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Program Revenues
OperatingCapital
Charges forContributionsContributions
Functions/ProgramsExpensesServicesand Grantsand Grants
Governmental activities:
General government $ 53,928,438$ 10,007,154$ 242,869 -
Public safety27,232,7241,429,900353,7332,076,043
Recreation and community service23,472,4698,306,0769,003123,505
Public works14,771,92515,792,1978,031,93629,608,033
Community development 6,957,4381,901,897621,538-
Neighborhood Services 1,082,83627,090,508 - -
Unallocated infrastructure depreciation19,259,333 - - -
Interest and fiscal changes 1,638,960 - - -
148,344,12364,527,732 9,259,07931,807,581
Total governmental activities
Business-type activities:
Transit enterprise28,309,8706,987,48810,226,9463,102,269
Total primary government$ 176,653,993$ 71,515,220$ 19,486,025$ 34,909,850
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 (loss)
Miscellaneous
Gain on sale of capital assets
Total General Revenues
Transfers
Change in Net Position
Net Position, Beginning of Year, as restated
Net Position, End of Year
See accompanying notes to financial statements.
16
Net (Expense) Revenues and
Changes in Net Position
GovernmentalBusiness-type
ActivitiesActivitiesTotal
$ -(43,678,415)$$ (43,678,415)
(23,373,048)-(23,373,048)
(15,033,885)-(15,033,885)
38,660,241-38,660,241
(4,434,003)-(4,434,003)
26,007,672-26,007,672
(19,259,333)-(19,259,333)
(1,638,960)
(1,638,960)-
(4
2,749,731)-(42,749,731)
-(7,993,167)(7,993,167)
(42,749,731)(7,993,167)(50,742,898)
42,284,749-42,284,749
37,252,523-37,252,523
8,523,791-8,523,791
3,489,281-3,489,281
1,320,018-1,320,018
162,103-162,103
591,177(1,242)589,935
2,661,916-2,661,916
10,93520,238 31,173
96,296,49318,99696,315,489
(5,924,278)5,924,278 -
47,622,484(2,049,893)45,572,591
1,045,875,84480,361,0461,126,236,890
$ 1,093,498,328$ 78,311,153$1,171,809,481
17
CITY OF SANTA CLARITA, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
Bridge andDeveloper
General FundThoroughfareFees
Assets:
Cash and investments153,380,261$ 10,785,984$ 5,106,363$
Receivables:
Accounts, net676,014 - -
Interest
45,986782,857 21,791
Taxes9,958,518 - -
Loans- - -
Notes to RDA Successor Agency9,440,601 - 6,751,458
Prepaid costs275,867 - -
Due from other governments103,765 - -
Due from other funds3,838,034 - -
Advances to other funds13,828,350 - 123,707
Restricted assets:
Cash and investments- - -
Cash and investments with fiscal agents- - -
Total assets
$ 10,831,970192,284,267$ 12,003,319$
Liabilities, deferred inflows of resources,
and fund balances (deficit):
Liabilities:
Accounts payable and accrued liabilities7,351,373$ 181,759 86,434
Deposits payable17,074,062 - -
Due to other governments7,700,000 - -
Unearned revenues723,600 - -
Due to other funds- - -
Advances from other funds - 5,553,119 -
Total liabilities
5,734,87832,849,035 86,434
Deferred inflows of resources:
Unavailable revenues11,253,355 - 6,875,165
Fund balances (deficit):
Nonspendable12,390,885 - -
Restricted- 5,097,0924,989,216
Committed- - 15,008
Assigned88,674,761 - 37,496
Unassigned47,116,231- -
Total fund balances (deficit)
5,097,092148,181,877 5,041,720
Total liabilities, deferred inflows of
of resources and fund balances (deficit)
$ 10,831,970192,284,267$ 12,003,319$
See accompanying notes to financial statements.
18
Special Revenue Funds
LandscapeNon-majorTotal
PublicMaintenanceGovernmentalGovernmental
LibraryDistrict #1FundsFunds
$ 4,546,587$ 35,838,362$ 55,352,224$ 265,009,781
136 23,833 240,003 939,986
19,402 153,135 232,2821,255,453
266,209 391,006 634,32011,250,053
-- 2,828,0342,828,034
- - 16,192,059-
23,217-5,882 304,966
--5,469,9315,573,696
- --3,838,034
- - 13,952,057-
- 15,799,627-15,799,627
-- 871,961 871,961
$ 4,855,551$ 36,406,336$ 81,434,264$ 337,815,707
717,2551,309,224$ 4,316,106$ 13,962,151
- - 17,074,062-
-- 34,4797,734,479
- -- 723,600
-- 3,549,4723,549,472
8,398,938- 13,952,057-
9,116,1931,309,2247,900,05756,995,821
- 6,871,33924,999,859
23,217-5,88212,419,984
-35,097,11268,103,206113,286,626
--- 15,008
-- 1,079,66989,791,926
(4,283,859)-(2,525,889)40,306,483
(4,260,642) 35,097,112 66,662,868255,820,027
$ 4,855,551$ 36,406,336$ 81,434,264$ 337,815,707
19
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CITY OF SANTA CLARITA, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
Fund balances of governmental funds$ 255,820,027
Amounts reported for governmental activities in
the statement of net 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$ 225,533,423
Depreciable assets, net of accumulated depreciation 712,167,246
937,700,669
Revenues reported as deferred inflows in the governmental funds
do not provide current financial resources but are
recognized in the Statement of Activities24,999,859
Amounts reported for net pension and OPEB 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 and OPEB 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(44,893,524)
Deferred outflows of resources related to pensions 19,535,342
Deferred inflows of resources related to pensions(2,218,819)
Net OPEB liability(10,030,430)
Deferred inflows of resources related to OPEB(1,397,228)
(39,004,659)
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:
Revenue/taxable revenue bonds(40,380,831)
Private placement lease payable(3,595,740)
Capital leases67,800
Loans payable(100,000)
Deferred outflow of resources related to loss on refunding 1,708,040
Compensated absences(3,294,947)
Bridge and Thoroughfare developer payables(49,626,105)
(95,221,783)
Accrued interest payable on long-term liabilities do not require the
use of current financial resources and therefore are not reported in the
governmental funds. (185,513)
Internal service funds 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.9,389,728
$1,093,498,328
Net Position of Governmental Activities
See accompanying notes to financial statements.
20
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Special Revenue Funds
Bridge andDeveloper
GeneralThoroughfareFees
Revenues:
Taxes$ 84,657,643$ -$ -
Special assessments- - -
Licenses and permits7,688,342 - -
Intergovernmental 377,151 - -
Charges for services8,756,356 - -
Investment income (loss) 277,852326,969 17,505
Fines and forfeitures 794,423 - -
Developer fees-3,833,8422,126,043
Other revenue 363,978688,724 -
102,915,7454,849,5352,143,548
Total revenues
Expenditures:
Current:
General government 23,789,790 2,380350,000
Public safety 24,793,460-1,899,310
Recreation and community service 21,068,481--
Public works 21,141,0201,687,179153,451
Community development6,475,435 - -
Neighborhood services 715,633 - -
Capital outlay6,794,657 3 45,741155,359
Debt service:
Principal retirement- - -
Interest and fiscal charges-436,011 -
104,778,4762,471,3112,558,120
Total expenditures
Excess (deficiency) of revenues
(1,862,731)2,378,224 (414,572)
over (under) expenditures
Other financing sources (uses):
Bonds issued- - -
Payment to refunding bond escrow agent
Transfers in4,451,281 - -
Transfers out (3,421,939)-(83,087)
1,029,342-(83,087)
Total other financing sources (uses)
Net change in fund balances(833,389)2,378,224 (497,659)
149,015,2662,718,8685,539,379
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year$ 148,181,877$ 5,097,092$ 5,041,720
See accompanying notes to financial statements.
21
Special Revenue Funds
LandscapeNon-majorTotal
PublicMaintenanceGovernmentalGovernmental
LibraryDistrict #1FundsFunds
$ 6,950,685$ 973,449$ 450,688$ 93,032,465
20,304,846 11,844,11932,148,965
-
-- - 7 ,688,342
-- 36,114,55436,491,705
85,000 -802,905 9 ,644,261
(10,995) 8 1 (15,762)595,650
- - 578,264 1 ,372,687
- -3,928,849 9 ,888,734
162,366 -529,007 1 ,744,075
7,187,056 21,278,376 54,232,624 192,606,884
5,633,623 16,119,879 4 ,832,97050,728,642
- -524,79727,217,567
-457,59463,24321,589,318
-297,716 33,934,28057,213,646
-- 512,896 6 ,988,331
-407,704 39,310 1 ,162,647
36,104595,784 4 ,156,24212,083,887
- -2,138,803 2 ,138,803
143,804-1,068,027 1 ,647,842
5,813,531 17,878,677 47,270,568 180,770,683
1,373,525 3,399,699 6 ,962,05611,836,201
- - 15,848,27115,848,271
- - (35,099) (35,099)
- 10,000 21,229,28525,690,566
(10,429)(146,201)(26,782,469)(30,444,125)
(10,429)(136,201) 10,259,98811,059,613
1,363,096 3 ,263,498 17,222,04422,895,814
(5,623,738) 31,833,614 49,440,824 232,924,213
$ (4,260,642)$ 35,097,112$ 66,662,868$ 255,820,027
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 30, 2018
Net changes in fund balances - total governmental funds22,895,814$
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. Additionally, certain capital contributions
are only reflected as revenues on government-wide statement of activities.
Capital outlay and public works expenditures54,765,173$
Capital contributions3,920,671
Depreciation expense(22,872,121)
35,813,723
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the governmental funds.1,067,059
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. The following includes the amounts of repayment of
long-term liabilities:
Changes in compensated absences184,799
Bond proceeds(15,848,271)
Lease revenue bonds650,000
Private placement lease payable1,388,803
Loans and capital leases28,244
Loans payable100,000
Loss on refundings(91,645)
Amortization of premiums of long-term liabilities79,896
(13,508,174)
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 27,486
Changes in net OPEB liability and related deferred inflows of resources (646,818)
Changes in net pension liabilities and related deferred inflows and outflows of resources 1,310,386
691,054
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. 663,008
Change in net position of governmental activities
$ 47,622,484
See accompanying notes to financial statements.
23
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Business-typeGovernmental
ActivitiesActivities
TransitInternal
EnterpriseService Funds
Assets:
Current assets:
Cash and investments$ 10,953,230-$
Receivables:
Accounts 16,821 -
Interest1,43750,496
Prepaid costs14,5868,658
Due from other governments3,765,853-
3,798,697 11,012,384
Total current assets
Noncurrent assets:
Capital assets:
Land and construction in progress17,895,097-
Site improvements, net of accumulated depreciation9,109,464-
Building and improvements, net of accumulated depreciation28,674,720-
Equipment, net of accumulated depreciation23,520,1901,364,743
79,199,4711,364,743
Total noncurrent assets
Total assets 82,998,168 12,377,127
Deferred outflows of resources:
Deferred outflows related to pensions714,26674,645
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities3,032,64462,720
Compensated absences60,0018,842
Claims and judgements-1,690,947
Dueto other funds288,562 -
Total current liabilities3,381,2071,762,509
Noncurrent liabilities:
Compensated absences payable 15,636 -
Claims and judgments-1,084,282
Net OPEB liability247,416 30,927
Net pension liability1,641,432171,540
1,904,4841,286,749
Total noncurrent liabilities
Total liabilities5,285,6913,049,258
Deferred inflows of resources:
Deferred inflows related to OPEB 34,4644,308
Deferred inflows related to pensions 81,1268,478
115,590 12,786
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets 79,199,4711,364,743
Unrestricted (888,318)8,024,985
$ 78,311,153$ 9,389,728
Total net position
See accompanying notes to financial statements.
24
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Business-typeGovernmental
ActivitiesActivities
TransitInternal
EnterpriseService Funds
Operating revenues:
Charges for services6,429,467$ 3,292,076$
Other revenues558,021 1,000,000
4,292,0766,987,488
Total operating revenues
Operating expenses:
Administration and personnel services2,726,696 166,052
Transportation services19,332,460 -
Services and supplies1,327,681 2,037,066
Depreciation expense4,923,033 259,426
2,462,54428,309,870
Total operating expenses
Operating income (loss) 1,829,532(21,322,382)
Nonoperating revenues (expenses):
Intergovernmental revenue10,226,946 -
Investment income (loss)(1,242) (6,740)
Gain on disposal of capital assets20,238 10,935
4,19510,245,942
Total nonoperating revenues (expenses)
1,833,727(11,076,440)
Income (loss) before transfers and capital contributions
Transfers and capital contributions:
Transfers in7,634,532 72,198
Transfers out(1,710,254) (1,242,917)
Capital contributions3,102,269 -
Total transfers and capital contributions (1,170,719)9,026,547
663,008(2,049,893)
Change in net position
Net position
Net position, beginning of year, as restated80,361,046 8,726,720
Net position, end of year78,311,153$ 9,389,728$
See accompanying notes to financial statements.
25
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Business-typeGovernmental
ActivitiesActivities
TransitInternal
EnterpriseService Funds
Cash flows from operating activities:
Cash received from customers and users6,997,104$ $ 4,294,451
Cashpaid to suppliers for goods and services(27,634,285)(2,431,328)
Cashpaid to employees for services(1,241,858)(166,593)
Cash received from other services558,021 -
(21,321,018)1,696,530
Net cash provided by(used in) operating activities
Cash flows from noncapital financing activities:
(1,710,254)(1,242,917)
Cash transfers out
Cash transfers in7,634,532 72,198
governmental revenues15,151,636 -
Inter
(used in)provided by noncapital financing activities21,075,914(1,170,719)
Net cash
pital and related financing activities:
Cash flows from ca
pital contributions3,102,269 -
Ca
Acquisition and construction of capital assets(2,970,575)(380,452)
posal of capital assets113,726 10,935
Proceeds from dis
Net cash provided (used) for capital and
245,420 (369,517)
related financing activities
Cash flows from investing activities:
Interest received(2,679) ( 9,270)
(2,363) 147,024
Net increase/(decrease) in cash and cash equivalents
2,36310,806,206
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of year
$ 10,953,230-$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss)$ (21,322,382)$ 1,829,532
Adjustments to reconcile operating income (loss) to net
cash provide by(used in) operating activities:
preciation4,923,033 259,426
De
Decrease in accounts receivable567,637 2,375
prepaid expense103,393 12,752
Decrease in
Change in deferred amounts related to OPEB34,464 4,308
Change in net OPEB liability (18,504) ( 2,314)
Change in deferred amounts related to pensions(300,755) (31,431)
Change in net pension liability252,844 26,422
Increase/(Decrease) in accounts payable(4,553,943)8,513
(997,549) -
Increase in due to other funds
Increase in claims and judgments-(415,527)
Increase in compensated absences(9,256) 2,474
justments 1,364(133,002)
Total ad
Net cash provided by (used in) operating activities
$ (21,321,018)$ 1,696,530
See accompanying notes to financial statements.
26
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2018
Private-purpose
Other PostTrust Fund
AgencyEmployment BenefitsRedevelopment
Funds(OPEB) Trust FundSuccessor Agency
Assets:
Cash and investments1,188,644$ -$ 90,040$
Receivables:
Interest5,057 - 314
Taxes -1,316 -
Due from other governments- - 7,734,479
Restricted assets:
Cash and investments- - 13,437
Cash and investments held with PARS- 38,964,300 -
Cash and investments with fiscal agents1,764,108 - 2,389,625
Capital assets:
Land9,937,976 - -
Building and improvements, net of accumulated depreciation75,252 - -
$ 38,964,30012,972,353 10,227,895
Total assets
Deferred Outflows of Resources:
Unamortized loss on refunding-$ - 2,398,448
Liabilities:
Accounts payable500 - 2,102
Interest payable- - 337,729
Due to external parties12,971,853 - -
Bonds, due within one year- - 833,660
Bonds and notes, due in more than one year- - 50,152,607
$ -12,972,353 51,326,098
Total liabilities
Net position (deficit):
Net position restricted for OPEB38,964,300$
Trust deficit$ (38,699,755)
See accompanying notes to financial statements.
27
CITY OF SANTA CLARITA, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Private-purpose
Other PostTrust Fund
Employment BenefitsRedevelopment
(OPEB) Trust FundSuccessor Agency
Additions:
Property taxes-$$3,148,188
Employer contributions1,227,000-
Investment income2,963,587943
4,190,5873,149,131
Total Additions
Deductions:
Benefit payments to plan members1,054,041
Administrative expenses146,3192,092
Contractual services-97,295
Interest expense-1,796,068
1,200,3601,895,455
Total Deductions
2,990,2271,253,676
Change in Net Position
Net Position (deficit):
Net position/(deficit), beginning of year, as restated35,974,073(39,953,431)
Net position/(deficit), end of year$38,964,300$ (38,699,755)
See accompanying notes to financial statements.
28
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NOTES TO BASIC FINANCIAL STATEMENTS
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CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – 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 un and the
it with the City’s Comprehensive Annual Financial Report (CAFR). The City
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.
of a given function are offset
The Statement of Activities demonstrates the degree to which the direct expenses
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 30, 2018
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, Basic Financial Statements – and Management’s Discussion and Analysis – for State and
Local Governments 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 Cit
y 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 30, 2018
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.
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,
s (revenues) and decreases (expenses) in total net
Expenses and Changes in Net Position present increase
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.
jor enterprise fund:
The City reports the following ma
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 30, 2018
NOTE 1 – 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 an other postemployment benefits (OPEB) trust fund,
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. OPEB trust funds and private-
purpose trust funds are reported using the “economic resources” measurement focus and the accrual basis of
accounting.
The OPEB Trust Fund is used to account for transactions for retiree health care.
The Redevelopment 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 Authority 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.
32
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.Basis of Accounting and Measurement Focus (Continued)
Fund Types Reported by the City
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.
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 and the Local Agency 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
centration of Credit Risk
- Con
Foreign Currency Risk
33
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Cash and Cash Equivalents and Investments (Continued)
The City applies GASB Statement No. 72, Fair Value Measurements and Application for determining fair value
measurements, applying fair value to investments, and disclosures related to the fair value hierarchy. 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.
Cash and Investments with PARS related to the City’s OPEB Trust are disclosed in Note 13.
E.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.”
F.Property Taxes/Special Assessments
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. Special assessments are reported in the City’s Special
Assessment Special Revenue Fund.
G.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.
H.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 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I.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 historicalcost 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
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 or other functional expenditures such as public works. 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.
J.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 30, 2018
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 General Fund when it has
matured (i.e., when due and payable).
M.Claims and Judgments
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
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 terms. 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 12, 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, 2019.
36
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O.Other Post-Employment Benefits
For purposes of measuring the net OPEB obligation, deferred outflows or resources and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan
(OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined
on the same basis. For this purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value (see Note 13).
Generally
accepted accounting principles require that the reported results must pertain to liability and asset
information within certain defined timeframes. For this report, the following timeframes are used:
ValuationDateJune30, 2016
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
P.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 interfund 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.
37
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P.Net Position and Fund Balances (Continued)
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 City Treasurer 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. The
General Fund is the only fund that reports a positive unassigned fund balance amount. In other
governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in
governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the
amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a
negative unassigned fund balance in that fund.
The City Council has approved an operating reserve to be used for one-time unanticipated expenditure
requirements and local disaster. At June 30, 2018, the balance totaled $16,870,000, which is included in the
unassigned fund balance in the General Fund.
Q.Spending Policy
Government-Wide Financial Statements and Proprietary 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
38
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R.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.
S.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.
T.Pronouncements Adopted in the Current Year
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. The City implemented this Statement effective July 1, 2017.
GASB Statement No. 75 – In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions. Statement 75 establishes new accounting and financial
reporting requirements for governments whose employees are provided with OPEB, as well as for certain
nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the
employees of other entities. This Statement is effective for reporting periods beginning after June 15,
2017. The City implemented this Statement effective July 1, 2017.
GASB Statement No. 85 – In March 2017, GASB issued Statement No. 85¸ Omnibus 2017. The objective of
this Statement is to improve consistency in accounting and financial reporting by addressing practice issues that
have been identified during implementation and application of certain GASB Statements. This Statement is
effective for reporting periods beginning after June 15, 2017. The City implemented this Statement effective
July 1, 2017.
39
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
U.Pronouncements Issued But Not Yet Adopted
The GASB has issued pronouncements that have an effective date subsequent to June 30, 2018, which may
impact future financial presentations. 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. 83 – In November 2016, GASB issued Statement No. 83, Certain Asset Retirement
Obligations.This Statement addresses accounting and financial reporting for certain asset retirement
obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible
capital asset. A government that has legal obligations to perform future asset retirement activities related to its
tangible capital asset should recognize a liability based on the guidance in this Statement. This Statement also
requires disclosure of information about the nature of a government’s ARO, the methods and assumptions used
for the estimates of the liabilities, and the estimated remaining useful life of the associated tangible capital
assets. The requirements of this Statement are effective for reporting periods beginning after June 15, 2018, or
the 2018-19 fiscal year. The City has not determined the effect of the Statement.
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The
objective of this Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how those activities should be reported. The requirements of
this Statement are effective for reporting periods beginning after December 15, 2018, or the 2019-20 fiscal year.
The City has not determined the effect of this Statement.
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this
Statement is to better meet the information needs of financial statement users by improving accounting and
financial reporting for leases by governments. This Statement increases the usefulness of governments’
financial statements by requiring recognition of certain lease assets and liabilities for leases that previously
were classified as operating leases and recognized as inflows of resources or outflows of resources based on the
payment provisions of the contract. It establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to
recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and
consistency of information about governments’ leasing activities. The Statement is effective for the reporting
periods beginning after December 15, 2019, or 2020-2021 fiscal year. The City has not determined the effect
of the Statement.
GASB Statement No. 88 – In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related
to Debt, including Direct Borrowings and Direct Placements. The objective of this Statement is to improve
consistency in the information that is disclosed in the notes to government financial statements related to debt,
including direct borrowings and direct placements, and to provide financial statement users with additional
essential information about debt. This Statement is effective for reporting periods beginning after June 15, 2018,
or the 2018-19 fiscal year. The City has not determined the effect of this Statement.
GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost
Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the
relevance and comparability of information about capital assets and the cost of borrowing for a reporting period
and (b) to simplify accounting for certain interest costs. This Statement is effective for reporting periods
beginning after December 15, 2019, or the 2020-21 fiscal year. The City has not determined the effect of this
Statement.
40
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
U.Pronouncements Issued But Not Yet Adopted (Continued)
GASB Statement No. 90 – In September 2018, the GASB issues Statement No. 90, Majority Equity Interests,
an amendment of GASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the
consistency and comparability of reporting a government’s majority equity interest in a legally separate
organization and to improve the relevance of financial statement information for certain component units. The
Statement is effective for reporting periods beginning after December 15, 2018, or the 2019-20 fiscal year. The
City has not determined the effect of this Statement.
NOTE 2 – CASH AND INVESTMENTS
A.Cash and Investments
Cash and investments at June 30, 2018, are classified in the accompanying financial statements as follows:
Governmental
ActivitiesFiduciary FundsTotal
Cash and investments275,963,011$ 1,278,684$ 277,241,695$
Restricted assets:
Cash and investments15,799,627 13,437 15,813,064
Cash and investments with fiscal agents871,961 4,153,733 5,025,694
Totals292,634,599$ 5,445,854$ 298,080,453$
Cash and investments consisted of the following at June 30, 2018:
Cash on hand and deposits:
Cash on hand $ 5,078
Deposits with financial institutions5,730,096
Certificates of deposit249,998
Total Cash on Hand and Deposits5,985,172
Investments:
U.S. Treasury Securities31,306,073
U.S. Government-Sponsored Enterprise Securities53,073,323
Negotiable Certificate of Deposits33,590,272
Supranational 21,821,613
Commercial Paper22,964,768
Medium-Term Notes47,877,942
Money Market Funds 24,999
Asset Backed 11,634,674
State of California Local Agency Investment Fund (LAIF)47,402,860
L.A. County Pooled Investment Fund (LACPIF)1,559,999
Total Investments271,256,523
Restricted investments:
Money Market Funds15,813,064
Restricted investments with fiscal agent:
Money Market Funds5,025,694
Total cash and investments298,080,453$
41
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
A.Cash and Investments (Continued)
The carrying amounts of the City’s deposits were $5,974,909 at June 30, 2018. Bank balances before
reconciling items were $9,114,086 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.
Cash and Investments with PARS related to the City’s OPEB Trust are disclosed in Note 13.
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
provisionsof the California Government Code or the City’s investment policy.
Maximum
Percentage orMaximum
AuthorizedMaximumAmount of Investment in
Investment TypeMaturityPortfolio*One Issuer**
Local Agency Bonds5 yearsNo LimitNo Limit
U.S. Treasury Obligations5 yearsNo LimitNo Limit
State of California Obligations5 yearsNo LimitNo Limit
California Local Agency Obligations5 yearsNo Limit50%
U.S. Governmental-Sponsored Enterprise Securities5 yearsNo LimitNone
Supranationals/Unsubordinated Obligations5 years30%10%
Banker's Acceptances180 days40%30%
Commercial Paper270 days25%10%
Negotiable Certificates of Deposit5 years30%30%
Repurchase Agreements1 yearNo LimitNo Limit
Medium-Term Notes5 years30%30%
Money Market Funds5 years20%10%
Mortgage Pass-Through Securities5 years20%50%
Asset Backed5 years20%20%
Los Angeles County Pooled Investment Fund (LACPIF)Not ApplicableNo LimitNo Limit
State of California Local Agency Investment Fund (LAIF)Not Applicable$65,000,000 No Limit
42
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 2 – CASH AND INVESTMENTS (CONTINUED)
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 ofMaximum
MaximumAmount ofInvestment in
Authorized Investment TypeMaturityPortfolioOne Issuer
U.S. Treasury ObligationsN/A50%None
U.S. Government-Sponsored Enterprise Securities5 yearsNoneNone
Money Market Funds5 yearsNoneNone
State of California Local Agency Investment Fund (LAIF)5 years30%None
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, 2018, the City had the following investment maturities:
Investment Maturities (In Years)
Investment TypeFair ValueLess Than 11 to 2
2 to 33 to 44 to 5
Investments:
U.S. Treasury Securities $ 31,306,073 $ 2,094,582 $ 1,269,892 $ 6,154,405 $ 9,401,804 $ 12,385,390
U.S. Government-Sponsored
Enterprise Securities 53,073,323 - 20,802,576 12,636,117 18,599,226 1,035,404
Supranational 21,821,613 - 5,140,399 13,156,994 3,524,220 -
gotiable Certificates of Deposit 33,590,272 - 23,074,338 10,515,934 - -
Ne
Commercial Paper 22,964,768 22,964,768 - - - -
Medium-Term Notes 47,877,942 62,000 9,531,394 12,399,127 16,824,582 9,060,839
Money Market Funds 24,999 24,999 - - -
Asset Backed 11,634,674 40,354 2,665,142 - 6,246,650 2,682,528
Local Agency Investment Fund (LAIF) 47,402,860 47,402,860 - - - -
Los Angeles County Pooled
Investments Fund (LACPIF) 1,559,999 1,559,999 - - - -
Total Investments
271,256,523 74,149,562 62,483,741 54,862,577 54,596,482 25,164,161
Restricted investments:
Money Market Funds15,813,064 15,813,064 - - - -
Restricted investments with fiscal agent:
Money Market Funds5,025,694 5,025,694 - - - -
Total Investments Subject
to Interest Rate Risk292,095,281$ 94,988,320$ 62,483,741$ 54,862,577$ 54,596,482$ 25,164,161$
43
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
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:
Minimum
Investment TypeRatingFair ValueAAAAA+AA/A-1
AA-Unrated
Investments:
U.S. Treasury SecuritiesNone $ 31,306,073 $ 31,306,073 $ - $ - $ - $ - $ -
U.S. Government-Sponsored
prise SecuritiesNone 53,073,323 1,035,403 52,037,920 - - - -
Enter
SupranationalAA 21,821,613 21,821,613 - - - - -
Negotiable Certificates of DepositNone 33,590,272 - - 29,446,703 2,029,919 - 2,113,650
Commercial PaperA 22,964,768 - - 19,886,500 3,078,268 - -
Medium-Term Notes*A 47,877,942 2,137,799 6,337,023 13,387,316 16,176,320 9,777,484 62,000
y Market FundsNone 24,999 24,999 - - - - -
Mone
Asset BackedAA 11,634,674 11,634,674 - - - - -
Local Agency Investment Fund (LAIF) None 47,402,860 - - - - -
47,402,860
Los Angeles County Pooled
(LACPIF)None 1,559,999 - - - - - 1,559,999
Investments Fund
Total Investments
271,256,523 67,960,561 58,374,943 62,720,519 21,284,507 9,777,484 51,138,509
Restricted investments:
Money Market FundsNone 15,813,064 - - - - - 15,813,064
Restricted investments with fiscal agent:
Money Market FundsNone 5,025,694 - - - - - 5,025,694
Total Investments Subject
to Interest Rate Risk292,095,281$ 67,960,561$ 58,374,943$ 62,720,519$ 21,284,507$ 9,777,484$ 71,977,267$
* Included in the medium-term notes is an investment in Lehman Brothers, which is not rated as of June 30, 2018. 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,
2018, this investment is recorded at $62,000.
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:
IssuerInvestment TypeAmountInvestments
Federal National Mortgage U.S. Government-Sponsored
AssociationEnterprise Securities23,002,610$ 10.30%
Federal Home Loan Mortgage U.S. Government-Sponsored
CorporationEnterprise Securities20,531,956$ 9.20%
44
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
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 investmentsis 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 party. As of June 30, 2018,
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, 2018:
Investment TypeFair ValueLevel 1Level 2
Level 3
Investments:
U.S. Treasury Securities $ 31,306,073 $ - $ 31,306,073 $ -
U.S. Government-Sponsored
Enterprise Securities 53,073,323 - 53,073,323 -
Supranational 21,821,613 - 21,821,613 -
Negotiable Certificates of Deposits 33,590,272 - 33,590,272 -
Commercial Paper 22,964,768 - 22,964,768 -
Medium-Term Notes 47,877,942 - 47,877,942 -
Money Market Funds 24,999 - 24,999 -
Asset Backed 11,634,674 - 11,634,674 -
222,293,664 $ - $ 222,293,664 $ -
Total Leveled Investments
Uncategorized Investments:
Local Agency Investment Fund (LAIF) 47,402,860
Los Angeles County Pooled 1,559,999
Investments Fund (LACPIF)
Restricted investments:
Money Market Funds 15,813,064
Restricted investments with fiscal agent:
Money Market Funds 5,025,694
Total Investment Portfolio292,095,281$
Deposits and withdrawals related to the investments in LAIF, LACPIF, and money market funds are made on
the basis of $1 and not fair value. Accordingly, under the fair value hierarchy these investments are
uncategorized.
45
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
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 $65,000,000 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, 2018 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, 2018, the City had $47,491,818invested in LAIF, which had invested 2.89 percent of the pool
investment funds in structured notes and asset-backed securities. The LAIF fair value factor of 0.998126869
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, 2018, the City had $1,559,999invested in the LACPIF.
46
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – ACCOUNTS RECEIVABLE
Accounts receivable as of June 30, 2018, including allowances for uncollectible accounts, is as follows:
Landscape
GeneralPublicMaintenance
FundLibraryDistrict #1
Gross receivables1,394,005$ $136$43,553
(19,720)
Less: allowance for uncollectibles(717,991)-
Net Total Receivables$ 676,014$136$23,833
Non-Major
Governmental
FundsTransitTotal
Gross receivables$ 352,510$16,821$ 1,807,025
Less: allowance for uncollectibles(112,507)-(850,218)
Net Total Receivables$ 240,003$16,821$ 956,807
NOTE 4 – 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 $2,828,034
at June 30, 2018, 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 5 – 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 fiscal year 2014-2015, 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. For fiscal year 2015-2016 and subsequent, the loan amounts will increase by the 3 percent interest only. As
of June 30, 2018, the loan amounts reported in the General Fund and Developer Fees Special Revenue Fund was
$9,440,601 and $6,751,458, respectively. The unpaid accrued interest of these notes is $2,749,354and $1,431,572,
respectively.
47
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – 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, 2018:
Governmental Activities
Balance
Balance
June 30, 2017,
Additions
As RestatedDeletionsTransfersJune 30, 2018
Governmental activities:
Non-depreciable assets:
d $ 162,971,944 $ 9,904,692 $ - $ - $ 172,876,636
Lan
Construction in progress 32,869,119 45,884,717 - (26,097,049) 52,656,787
Total Non-Depreciable Assets
195,841,063 55,789,409 - (26,097,049) 225,533,423
Depreciable assets:
Site improvements47,417,469 1,381,621 - - 48,799,090
Building and improvements72,637,100 - - - 72,637,100
Equipment13,728,819 872,390 (413,209) - 14,188,000
Infrastructure961,400,106 1,022,875 - 26,097,049 988,520,030
Total Depreciable Assets1,095,183,494 3,276,886 (413,209) 26,097,049 1,124,144,220
Less accumulated depreciation:
Site improvements16,664,342 1,626,840 - - 18,291,182
Building and improvements20,785,894 1,451,638 - - 22,237,532
Equipment9,403,531 793,736 (413,209) - 9,784,058
Infrastructure341,040,126 19,259,333 - - 360,299,459
Total Accumulated Depreciation387,893,893 23,131,547 (413,209) - 410,612,231
Total Depreciable Assets, Net707,289,601 (19,854,661) - 26,097,049 713,531,989
Total Capital Assets, Net903,130,664$ 35,934,748$ -$ -$ 939,065,412$
Depreciation expense was charged to functions/programs of governmental activities for the fiscal year ended
June 30, 2018, as follows:
Governmental Activities:
General government$ 802,722
Public safety 17,538
Recreation and community service 2,395,833
Neighborhood services 52,916
Public works 321,700
Community development 22,079
Internal service funds depreciation 259,426
Allocated Depreciation 3,872,214
Unallocated infrastructure depreciation 19,259,333
Total Depreciation Expense$ 23,131,547
48
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 – 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, 2018:
Business-Type Activities
Balance
June 30, 2017,Balance
As RestatedAdditions
DeletionsJune 30, 2018
Business-type activities:
Non-depreciable assets:
Land $ 15,087,880 $ - $ - $ 15,087,880
Construction in progress 1,658,051 1,149,166 - 2,807,217
Total Non-Depreciable Assets
16,745,931 1,149,166 - 17,895,097
Depreciable assets:
Site improvements12,941,276 - - 12,941,276
Building and improvements41,483,799 - - 41,483,799
Equipment55,821,901 1,821,409 (2,582,693) 55,060,617
Total Depreciable Assets110,246,976 1,821,409 (2,582,693) 109,485,692
Less accumulated depreciation:
Site improvements3,263,591 568,221 - 3,831,812
Building and improvements11,925,733 883,346 - 12,809,079
Equipment30,558,166 3,471,466 (2,489,205) 31,540,427
Total Accumulated Depreciation45,747,490 4,923,033 (2,489,205) 48,181,318
Total Depreciable Assets, Net64,499,486 (3,101,624) (93,488) 61,304,374
Total Capital Assets, Net81,245,417$ (1,952,458)$ (93,488)$ 79,199,471$
Depreciation expense for business-type activities for the fiscal year ended June 30, 2018 was charged as follows:
Business-type Activities:
Transit enterprise fund$ 4,923,033
49
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 – LONG-TERM DEBT
A.Governmental Activities
The following is a summary of long-term debt transactions of the City for the year ended June 30, 2018:
Classification
BalanceBalanceDue WithinDue More
June 30, 2017Additions
DeletionsJune 30, 2018One YearThan One Year
Lease Revenue Bonds:
Series 2016A (Golden Valley Road) $ 9,945,000 $ - $ (375,000) $ 9,570,000 $ 385,000 $ 9,185,000
Series 2016B (OSPD) 13,725,000 -(275,000) 13,450,000 305,000 13,145,000
Plus deferred amount for issuance premium 1,592,456 - (79
,896) 1,512,560 79,896 1,432,664
Total Lease Revenue Bonds
25,262,456 -(729,896) 24,532,560 769,896 23,762,664
Revenue and Taxable Revenue Bonds:
Series 2018A-11,295,000- 11,295,000 11,295,000
Series 2018B-4,005,000-4,005,000 725,0003,280,000
Plus deferred amount for issuance premium-548,271-548,271 15,605532,666
Total Revenue and Taxable Revenue Bonds-15,848,271-15,848,271 740,605 15,107,666
Private Placement Lease:
Refunding, Series 20154,984,543 -(1,388,803) 3,595,7401,418,260 2,177,480
Loans100,000 - ( 100,000) - - -
Capital Leases 60,444 -(28,244) 3 2,200 2 9,662 2,538
Subtotal Bonds, Loans and Capital Leases30,407,443 15,848,271(2,246,943)44,008,771 2,958,423 41,050,348
Compensated absences3,486,1151,905,253(2,087,579) 3,303,789 2,087,5791,216,210
Claims and judgments3,190,7561,210,037(1,625,564) 2,775,229 1,690,9471,084,282
Total$ 37,084,314$ 18,963,561$ (5,960,086)$ 50,087,789$ 6,736,949$ 43,350,840
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,
2018, was $9,570,000 for Series 2016A and $13,450,000 for Series 2016B.
The annual debt service requirements on the remaining bonds are as follows:
Series 2016A:
Year Ending June 30,PrincipalInterestTotal
2019$ 385,000$ 311,400$ 696,400
2020400,000 295,700695,700
2021420,000 279,300699,300
2022435,000 262,200697,200
2023450,000 244,500694,500
2024-20282,550,000 936,000 3,486,000
2029-20332,925,000 551,825 3,476,825
2034-20362,005,000 9 1,275 2,096,275
$ 9,570,000$ 2,972,200$12,542,200
50
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 – LONG-TERM DEBT (CONTINUED)
A.Governmental Activities (Continued)
Series 2016B:
Year Ending June 30,PrincipalInterestTotal
2019305,000$ 418,606$ 723,606$
2020340,000 405,706 745,706
2021375,000 391,406 766,406
2022410,000 375,706 785,706
2023445,000 358,606 803,606
2024-20282,840,000 1,488,081 4,328,081
2029-20333,800,000 1,054,834 4,854,834
2034-20384,935,000 404,875 5,339,875
$ 4,897,82013,450,000$ 18,347,820$
Revenue and Taxable Revenue Bonds – Series 2018A and 2018B (Streetlights Acquisition and Retrofit
Program)
In June 2018, the Authority issued 2018 Revenue Bonds Series A and 2018 Taxable Revenue Bonds Series B,
in the amount of $11,295,000 and $4,005,000, respectively.
Interest on the 2018 Revenue Bonds Series A, is paid as part of a variable rate between 3 percent and 5 percent
payable on September 1 and March 1 of each year commencing on September 1, 2018. Principal payments are
due annually in various amounts commencing September 1, 2018 through September 1, 2048, for the Series A
bonds. The unpaid balance as of June 30, 2018, was $11,295,000.
Interest on the 2018 Taxable Revenue Bonds Series B, is paid as part of a variable rate between 2.150 percent
and 3.750 percent payable on September 1 and March 1 of each year commencing on September 1, 2018.
Principal payments are due annually in various amounts commencing September 1, 2018 through September 1,
2028, for the Series B bonds. The unpaid balance as of June 30, 2018, was $4,005,000. The bonds are payable
from and secured by a pledge of and first lien on amounts on deposit in the Streetlighting fund, including
assessment revenues and Ad-valorem revenues.
Year Ending June 30,PrincipalInterestTotal
2019725,000$ 425,852$ 1,150,852$
2020295,000 567,201 862,201
2021305,000 558,906 863,906
2022310,000 550,063 860,063
2023320,000 540,613 860,613
2024-20281,760,000 2,538,491 4,298,491
2029-20332,130,000 2,158,469 4,288,469
2034-20382,545,000 1,750,739 4,295,739
2039-20433,060,000 1,197,550 4,257,550
2044-20483,850,000 401,325 4,251,325
$ 10,689,20915,300,000$ 25,989,209$
51
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 – 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,
2018, was $3,595,740.
The annual debt service requirements on these certificates are as follows:
Year Ending June 30,PrincipalInterestTotal
20191,418,260$ 66,198$ 1,484,458$
20201,447,109 37,110 1,484,219
2021730,371 7,450 737,821
$ 110,7573,595,740$ 3,706,497$
Loans
BalanceBalanceDue WithinDue More
June 30, 2017Additions
DeletionsJune 30, 2018One YearThan One Year
HUD Loans:
Boys & Girls Club $ 28,000 $ - $ (28,000) $ - $ - $ -
(72,000) - - -
Scherzinger Lane 72,000 -
Total Loans
$ 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 loan was paid in full during the year ended June 30, 2018.
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 loan was paid in full during the year ended June 30, 2018.
52
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 – LONG-TERM DEBT (CONTINUED)
A.Governmental Activities (Continued)
Capital Leases
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$ 13,433
Less: accumulated depreciation(10,522)
Total2,911$
Future capital lease payment requirements are as follows:
Year Ending June 30,Total
20193,348$
2020279
Net minimum lease payments3,627
Less: amount representing interest(184)
Present value of net minimum lease payments3,443$
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(95,533)
Total26,423$
Future capital lease payment requirements are as follows:
Year Ending June 30,Total
201927,235$
20202,270
Net minimum lease payments29,505
Less: amount representing interest(748)
Present value of net minimum lease payments28,757$
53
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 – LONG-TERM DEBT (CONTINUED)
A.Governmental Activities (Continued)
Compensated Absences
The City’s liability for accrued and unpaid compensated absences in the governmental activities totaled
$3,303,789at June 30, 2018. The majority of compensated absences are liquidated through the General Fund.
Claims and Judgments
The City’s liability for outstanding claims and judgments is $2,775,229at June 30, 2018 (see Note 16).
B.Business-Type Activities
Compensated Absences
The City’s liability for accrued and unpaid compensated absences in the business-type activities at
June 30, 2018, is as follows:
BalanceBalanceDue WithinDue More
June 30, 2017Additions
DeletionsJune 30, 2018One YearThan One Year
Compensated absences $ 84,893 $ 50,744 $ (60,000) $ 75,637 $ 60,001 $ 15,636
NOTE 8 – 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, 2018, deposits payable were as follows:
General Fund:
Deposits from developers2,733,170$
Sheriff's Station deposits payable13,864,322
Other deposits payable476,569
Total Deposits Payable17,074,061$
On May 31, 2016, the City entered into a memorandum of understanding with the County of Los Angeles (County)
for the new Santa Clarita Valley Sheriff’s Station. The County agreed to deposit $15,000,000 into the City’s trust
account earmarked for the design, engineering, and construction of the new Station.
54
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 9 – 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, 2018, the City accrued a liability of $49,626,105
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.
The following is a summary of developer credits by district for the year ended June 30, 2018:
BalanceBalance
June 30, 2017Additions
DeletionsJune 30, 2018
Bridge and Thoroughfare Credits:
Bouquet District $ 21,955,779 $-$-$ 21,955,779
Eastside District 11,927,888 - - 11,927,888
Via Princessa District171,264 - -171,264
Valencia District 15,571,175 - - 15,571,175
Total Bridge and Thoroughfare Credits
$ 49,626,106 $-$-$ 49,626,106
NOTE 10 – INTERFUND TRANSACTIONS
A.Due To/Due From
rm interfund receivables and payables:
At June 30, 2018, the City had the following short-te
Due From
Other Funds
General
Due to Other Funds:
Non-Major Governmental Funds$ 3,549,472
Transit Enterprise Fund288,562
Total$ 3,838,034
B.Advances
At June 30, 2018, the City had the following interfund advances:
Advances To Other Funds
Developer
GeneralFeesTotal
Advances From Other Funds:
Bridge and Thoroughfare$ 5,429,412$ 123,707$ 5,553,119
Public Library8,398,938-8,398,938
Total$ 13,828,350$ 123,707$ 13,952,057
55
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 – INTERFUND TRANSACTIONS (CONTINUED)
B.Advances (Continued)
Bridge and Thoroughfare
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, 2018, the amount of the advance outstanding is
$565,092.
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, 2018, the amount of
the advance outstanding is $990,729.
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, 2018, the amount of the advance outstanding
is $415,236.
In June 2016, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $3,000,000 for
the design of mass grading plans, buttress fill, survey, topography, complete roadway design and signals for the
future intersections and road extension. 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, 2018, the amount of the advance
outstanding is $573,162.
In January 2017, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $3,500,000
for the widening of the Newhall Ranch Road Bridge over the San Francisquito Creek (Project S1039). 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. The payments
are payable in separate annual installments over an eight-year period beginning January 2017 and ending June
2025. At June 30, 2018, the amount of the advance outstanding is $2,885,193.
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, 2018, the amount of the advance outstanding is
$123,707.
56
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 – INTERFUND TRANSACTIONS (CONTINUED)
B.Advances (Continued)
Public Library
The General Fund advanced the Public Library Special Revenue Fund $8,398,938, which consists of the
following individual advances:
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, 2018, the principal
amount of the advance of $327,343is 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, 2018, the principal
amount of the advance of $8,071,595is outstanding.
C.Transfers
At June 30, 2018, the City had the following transfers:
Transfers Out
GeneralDeveloperPublic
FundFeesLibrary
Transfers in:
General Fund-$ 83,087$ 10,429$
Landscape Maintenance District #110,000 - -
Non-Major Governmental Funds3,339,741 - -
Transit Enterprise- - -
Internal Service Funds72,198 - -
Total3,421,939$ 83,087$ 10,429$
Transfers Out
LandscapeNon-MajorTransit
MaintenanceGovernmentalEnterpriseInternal
District #1FundsFundService FundsTotal
Transfers in:
General Fund129,201$ 1,279,083$ 1,706,564$ 1,242,917$ 4,451,281$
Landscape Maintenance District #1- - - - 10,000
Non-Major Governmental Funds17,000 17,868,854 3,690 - 21,229,285
Transit Enterprise- 7,634,532 - - 7,634,532
Internal Service Funds- - - - 72,198
Total146,201$ 26,782,469$ 1,710,254$ 1,242,917$ 33,397,296$
The General Fund made transfers to Landscape Maintenance District #1 and non-major governmental funds for
operating and capital improvement projects for $1,164,664 and current year debt service payments for
$2,185,077, totaling $3,349,741. Transfers from the General Fund to the Self-Insurance Internal Service Fund
of $72,198 were for risk management operations. Transfers to the General Fund from the Self-Insurance
Internal Service Fund for $1,242,917 represents workers’ compensation reserve surplus and contributions for
pension obligations.
57
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 10 – INTERFUND TRANSACTIONS (CONTINUED)
C.Transfers (Continued)
The Bridge and Thoroughfare, Developer Fees, Public Library, 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 CalPERS pension obligations plus additional contribution
to pay down the City’s unfunded accrued liability, totaling $2,214,552.
The Landscape Maintenance District #1 Special Revenue Fund made transfers to the General Fund for $40,000
and the non-major governmental fund for operating costs for $17,000. The Developer Fees Special Revenue
Fund made transfers to the General Fund for administrative costs for $83,087.
The non-major governmental funds made transfers to the General Fund for operating costs for $720,725.
Transfers from non-major governmental funds to non-major governmental funds of $1,410,412 represents debt
service payments for the 2016 Lease Revenue Refunding Bonds, and $16,458,443 for bond proceeds and debt
service payments for the 2018 Lease Revenue Bonds Series A and 2018 Taxable Lease Revenue Bonds Series
B. Transfers from the non-major governmental funds to the Transit Enterprise Fund totaling $7,634,532 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.
58
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 11 – FUND BALANCES AND NET POSITION
A.Fund Balance Classification
The details of fund balance of the governmental funds as of June 30, 2018, are presented below:
Major Governmental Funds
LandscapeNon-Major
GeneralBridge andDeveloperPublicMaintenanceGovernmental
FundThoroughfareFeeLibraryDistrict #1FundsTotal
Nonspendable:
Prepaid items275,288$ -$ -$ 23,217$ -$ 5,882$ 304,387$
Advances to other funds12,115,597 *- - - - - 12,115,597
Total Nonspendable12,390,885 - - 23,217 - 5,882 12,419,984
Restricted:
Landscape maintenance- - - - 35,097,112 - 35,097,112
Lighting District 21,862,52521,862,525
Capital improvements- 5,097,092 2,465,588 - - 13,420,883 20,983,563
Transportation- - - - - 18,125,110 18,125,110
Open space preservation- - - - - 3,874,488 3,874,488
Public safety- - 2,070,998 - - 249,268 2,320,266
Public library- - - - - 1,624,229 1,624,229
Air quality improvement- - 100,539 - - 805,607 906,146
Stormwater- - - - - 5,653,478 5,653,478
Public education and government- - - - - 563,538 563,538
Tourism marketing- - - - - 1,215,748 1,215,748
Low- and moderate-income housing- - 352,091 - - 708,332 1,060,423
Total Restricted- 5,097,092 4,989,216 - 35,097,112 68,103,206 113,286,626
Committed:
Capital improvements- - 15,008 - - - 15,008
Assigned:
Capital projects15,500,000 - 37,496 - - 1,079,669 16,617,165
Claims and settlements5,156,328 - - - - - 5,156,328
Public facilities replacement68,018,433 - - - - - 68,018,433
Total Assigned88,674,761 - 37,496 - - 1,079,669 89,791,926
Unassigned47,116,231 - - (4,283,859) - (2,525,889) 40,306,483
Total Fund Balances148,181,877$ 5,097,092$ 5,041,720$ (4,260,642)$ 35,097,112$ 66,662,868$ 255,820,027$
* Accrued interest on General Fund advances to other funds of $1,712,753, do not provide current financial resources and are reported as deferred
inflows of resources for unavailable revenues.
NOTE 12 – AGENT MULTIPLE-EMPLOYER 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. CalPERS is an agent-
multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement
System. CalPERS 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. CalPERS 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 https://www.calpers.ca.gov.
59
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 – AGENT MULTIPLE-EMPLOYER PLAN (CONTINUED)
B.Benefits Provided
CalPERS 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 CalPERS employers, and with certain other Retirement Systems with which
CalPERS 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, 2018 are summarized as follows:
Miscellaneous
Tier 1Tier 2Tier 3
Formula2.7% at 552% at 602% at 62
Benefit vesting schedule5 years of service5 years of service5 years of service
Benefit paymentsmonthly for lifemonthly for lifemonthly for life
Retirement age556062
Monthly benefits, as a % of annual salary2.7%2.0%2.0%
Required employee contribution rates*8%7%5.75%
Required employer contribution rates 15.845%15.845%5.750%
Tier 1Tier 2Tier 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 CalPERS
member with a public
agency or in a Classific
reciprocal plan within
the last 6 months). **
* For unrepresented Tier 1 participants, the City pays 2% of the required employee contribution. For the SEIU Tier 1 participants, the City pays 2%
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.
C.Employees Covered by Benefit Terms
At June 30, 2016, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits164
Employees entitled to but not yet receiving benefits391
Active employees397
952
The information was obtained from the CalPers Annual Valuation Report as of June 30, 2016, and is the most
recent information available.
60
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 – AGENT MULTIPLE-EMPLOYER PLAN (CONTINUED)
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, 2018, including amounts paid by the City related to employees’ required
contribution rates. The employer contributions during the year ended June 30, 2018 were $9,662,191.
E.Actuarial Assumptions
The total pension liability in the June 30, 2016 actuarial valuation was determined using the following actuarial
assumptions:
Valuation Date June 30, 2016
Measurement Date June 30, 2017
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15 percent
Inflation 2.75 percent
Salary increases Varies by Entry Age and Service
Investment rate of return 7.50 percent
Mortality rates were based on the 2014 CalPERS actuarial experience study, which assumed future mortality
improvements using Society of Actuaries (SOA) Scale AA. The Experience Study report can be obtained at
CalPERS' website under Forms and Publications.
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 7.50 percent rate of return on pension plan investments, CalPERS took into account both short- and
61
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 – AGENT MULTIPLE-EMPLOYER PLAN (CONTINUED)
E.Actuarial Assumptions (Continued)
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, CalPERS indicated that a nineteen-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:
Assumed AssetReal ReturnReal Return
(1)(2)
Years 11+
Asset ClassAllocationYears 1-10
Global Equity47.0%4.90%5.38%
Fixed Income19.0%0.80%2.27%
Inflation Assets6.0%0.60%1.39%
Private Equity12.0%6.60%6.63%
Real Estate11.0%2.80%5.21%
Infrastructure and Forestland3.0%3.90%5.36%
Liquidity2.0%-0.40%-0.90%
100%
(1)
An expected inflation of 2.50% used for this period
(2)
An expected inflation of 3.00% used for this period
F.Changes of Assumptions
For the June 30, 2017 measurement date, the discount rate was changed from 7.65% to 7.15%.
G.Discount Rate
The discount rate used to measure the total pension liability was 7.15 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, the 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 7.15 percent discount rate is adequate, and the use of the municipal bond rate calculation
is not necessary. The long-term expected discount rate of 7.15 percent was 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.
62
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 – AGENT MULTIPLE-EMPLOYER PLAN (CONTINUED)
H.Changes in the Net Pension Liability
Increase (Decrease)
Total PensionPlan FiduciaryNet Pension
Liability (a)Net Position (b)Liability (a) - (b)
Balances at June 30, 2016159,757,441$ 120,245,541$ 39,511,900$
Changes recognized for the measurement
period:
Service cost -4,921,221 4,921,221
Interest12,166,752 - 12,166,752
Changes of assumptions11,654,992 - 11,654,992
Differences between expected and
actual experience(1,505,660) - (1,505,660)
Contributions from the employer 4,484,866- (4,484,866)
Contributions from the employees- 2,224,721 (2,224,721)
Net investment income- 13,510,656 (13,510,656)
Benefit payments, including refunds
of employee contributions(4,406,046) (4,406,046) -
Administrative expense- (177,534) 177,534
Net changes 22,831,259 15,636,663 7,194,596
Balances at June 30, 2017182,588,700$ 135,882,204$ 46,706,496$
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, 2018, the total net
pension liability was allocated as follows:
GovernmentalTransitTotal Net
ActivitiesEnterprise FundPension Liability
Net pension liability45,$ 1,641,432065,064$ 46,706,496$
I.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 7.15 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 (6.15 percent) or 1-percentage point higher (8.15 percent) than the current rate:
1% DecreaseCurrent Discount1% Increase
(6.15%)Rate (7.15%)(8.15%)
Net pension liability76,$ 46,706,496012,176$ 22,860,102$
J.Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
CalPERS financial report.
63
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 12 – AGENT MULTIPLE-EMPLOYER PLAN (CONTINUED)
K.Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2018, the City recognized pension expense of $8,299,610. At June 30, 2018, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources.
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Net difference between projected and actual earnings on pension plan investments1,710,878$ -$
Changes in assumptions8,812,311 1,003,270
Differences between expected and actual experience138,873 1,305,153
City contributions subsequent to the measurement date9,662,191
Total$ 2,308,42320,324,253$
At June 30, 2018, the total deferred outflow of resources, and deferred inflow of resources, and pension expense
related to the net pension liability was allocated as follows:
GovernmentalTransit
ActivitiesEnterprise FundTotal
Deferred outflows of resources19,609,987$ 714,266$ 20,324,253$
Deferred inflows of resources2,227,297 81,126 2,308,423
Pension expense8,007,932 291,678 8,299,610
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
$9,662,191, which will be recognized as a reduction of the net pension liability during the fiscal year ending
June 30, 2019. 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, 2017 measurement date, the expected average remaining service lifetime is 4.1 years. Deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Deferred
Outflows/(Inflows)
Fiscal Year Ending of Resources
2019$ 1,894,941
2020 4,036,840
2021 3,149,224
2022 (727,365)
Total$ 8,353,640
64
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS
A.Plan Description
The City has elected through resolution to provide healthcare benefits as an agent multiple-employer plan to
retirees, spouses, and eligible dependents of the City. This plan provides post-employment medical insurance
benefits through the CalPERS Health Plan (the Plan). A separate financial report is not issued.
B.Funding Policy
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. The Plan Trustee is U.S. Bank, and Public Agencies Retirement
Services (PARS) is the Trust Administrator.
The obligation of the City to contribute to the plan is established and may be amended by the City
Council. Employees are not required to contribute to the plan. The City has established a practice of
contributing to the irrevocable trust administered by PARS 100 percent of the Cash Subsidy. The Cash Subsidy
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost of each
year. The Cash Subsidy component of the annual required contribution for fiscal year 2017-18 was $1,227,000.
Due to an amendment to Actuarial Standards of Practice (ASOP) No. 6 Measuring Retiree Group Benefits
Obligations and Determining Retiree Group Benefits Costs or Contributions, valuations performed after March
31, 2015 requires the calculation of an implicit subsidy component of the annual required contribution and
actuarial liability. The City has elected not to fund the implicit subsidy component of the annual required
contribution. The City received credit of $257,000 related to the fiscal year 2017-18 implied subsidy payments
which has been included in the contributions amount above.
C.Eligibility
City employees who have a service retirement from the City at age 50 with five or more years of city 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 up to $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 unrepresented 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 before January 1, 2008 the following vesting applies:
Years of ServiceVested Percentage
0 to 5 years0%
5 to 9 years50%
10 to 14 years75%
15 years and greater100%
Employees hired after January 1, 2008, receive the PERS minimum and are not subject to a vesting schedule.
65
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED)
C.Eligibility (Continued)
As of the June 30, 2018 actuarial valuation, the following current and former employees were covered by the
benefit terms under the Plan:
ParticipantsTotal
Inactives currently receiving benefits109
Inactives entitled to but not yet receiving benefits20
Active employees367
Total496
D.Contributions
The Plan and its contribution requirements are established by a Memoranda of Understanding with the
applicable employee bargaining units and may be amended by agreements between the City and the bargaining
units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended
June 30, 2018, the City’s cash contributions were $970,000 in payments to the trust and the estimated implied
subsidy was $257,000 resulting in total payments of $1,227,000.
66
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED)
E.Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2018 and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation dated June 30, 2016, based on the following
assumptions:
Actuarial Assumptions:
Actuarial Valuation DateJune 30, 2016
Contribution PolicyCity contributes full cash benefit ADC. Implied Subsidy
benefit on pay-as-you-go basis.
Discount Rate5.60% at June 30, 2018
5.46% at June 30, 2017
Expected City contributions projected to be insufficient to
pay all benefits from trust.
Municipal Bond IndexBond Buyer 20-bond Index
3.87% June 30, 2018
3.58% June 30, 2017
Long Term Return on Assets6.50%
General Inflation3% per annum
Mortality, Retirement, Disability, Termination
1997-2011 CalPERS experience study
Mortality Improvement
Fully generational Scale MP-14 with convergence in 2022
Salary Increases
Aggregate -3%
Merit - 1997-2011 CalPERS experience study
Medical Trend
Non-Medicare - 6.5% for 2018, decreasing to an ultimate
rate of 5.0% in 2021 and later years
Medicare - 6.7% for 2018, decreasing to an ultimate rate
of 5.0% in 2021 and later years
Healthcare Participation for Future RetireesHired < 1/1/08: 100%
Hired > 1/1/08: 60%
Cap IncreasesNo increase on $1,016.58 cap
Medical trend for EE+1 cap
67
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED)
F.Cash and Investments Held in Trust
The City elected a discretionary investment approach with a moderate investment objective. 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 7.0 percent. The asset allocation ranges for this objective are 0 percent to 20 percent
cash source, 40 percent to 60 percent fixed income, and 40 percent to 60 percent equity.
The parameters for fixed income and equity securities based on asset allocation are as follows:
MaximumMinimum
Percentage ofPercentage of
Total PlanTotal Plan
Authorized Investment TypeAssetsAssets
Fixed Income
Long-term fixed income 25%0%
Intermediate-term fixed income60%25%
High-yield portion of the Plan10%0%
Convertible bond exposure10%0%
Short-term fixed income25%0%
Equity
Domestic large cap equity 45%15%
Domestic mid-capitalization equity10%0%
Domestic small capitalization equity15%0%
International equity15%0%
Real estate10%0%
Cash and investments related to the Plan consists of the following:
AssetsFair Value
Cash and Equivalents535,621$
U.S. Government Issues6,484,927
Corporate Issues6,777,065
Foreign Issues857,172
Municipal Issues320,001
Domestic Common Stocks3,772,300
Foreign Stocks148,911
Mutual Funds-Equity19,615,600
Mutual Funds-Fixed Income341,508
Total Assets38,853,105
Accrued Income111,195
Total 38,964,300$
68
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED)
F.Cash and Investments Held in Trust (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of OPEB plan investment expense
and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of
return for each major asset class are summarized in the following table:
Target
AllocationExpected Real
Asset ClassPARS-BalanceRate of Return
Global Equity58%4.82%
Fixed Income35%1.47%
REITS2%3.76%
Cash5%0.06%
For the year ended June 30, 2018, the annual money weighted rate of return on investments was 8.26%. The
money weighted rate of return expresses investment performances adjusted for the changing amounts actually
invested.
G.Concentrations of Credit Risk
Investments in any one issuer that represent 5 percent or more of the Plan’s total cash and investments are as
follows:
IssuerInvestment TypeAmountInvestments
Vanguard Growth and IncomeMutual Funds-Equity3,360,362$ 8.65%
Federal National Mortgage AssociationU.S. Government Issues2,501,071$ 6.44%
Undiscovered Managers BehavioralMutual Funds-Equity2,313,504$ 5.95%
Dodge and Cox Stock FundMutual Funds-Equity2,161,211$ 5.56%
H.Discount Rate
The discount rate used to measure the total OPEB liability was 5.60 percent for the 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 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, the plan’s
fiduciary net position and expected City contributions were projected to be insufficient to make all projected
future benefit payments of current active and inactive employees. Therefore, a blended rate was applied
beginning in year 38 using the Bond Buyer 20-bond index rate as of June 30, 2018. Before year 38, the long-
term expected rate of return was used to determine the total OPEB liability. As a result of the crossover, a
blended rate of 5.60 percent was used.
69
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED)
I.Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
TotalNet
OPEBFiduciaryOPEB
LiabilityNet PositionLiability/(Asset)
(a)(b)(c) = (a) - (b)
Balance at June 30, 201747,054,073$ 35,974,073$ 11,080,000$
Changes for the year
Service cost1,711,000 - 1,711,000
Interest2,633,000 - 2,633,000
Assumption changes(1,071,000) - (1,071,000)
Contributions - employer*- 1,227,000 (1,227,000)
Net investment income- 2,963,587 (2,963,587)
Benefit payments(1,054,000) (1,054,041) 41
Administrative expenses- (146,319) 146,319
Net Changes2,219,000 2,990,227 (771,227)
Balance at June 30, 201849,273,073$ 38,964,300$ 10,308,773$
*Contributions to trust of $970,000 plus $257,000 implied subsidy benefit payments by the City.
J.Changes of Assumptions
For the June 30, 2018 measurement date, the discount rate was changed from 5.46% to 5.60%.
K.Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB obligation of the City if it were calculated using a discount rate that is
one percentage point lower or one percentage point higher than the current rate, for measurement period ended
June 30, 2018:
1% DecreaseCurrent Rate1% Increase
(4.60%)(5.60%)(6.60%)
Net OPEB Liability18,$ 10,308,773774,000$ 3,548,000$
L.Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates
that are one percentage point lower or one percentage point higher than the current rate, for measurement period
ended June 30, 2018:
Healthcare Trend Rate
1% DecreaseCurrent Rate1% Increase
Net OPEB Liability1,$ 10,308,773998,000$ 21,011,000$
70
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 13 – POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED)
M.OPEB Plan Fiduciary Net Position
PARS issues a publicly available report that may be obtained from the Public Agency Retirement Services,
4350 Von Karman Ave, Newport Beach, CA 92660.
N.OPEB Expense and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2018, the City recognized OPEB expense of $1,892,000. As of fiscal year
ended June 30, 2018, the City reported deferred inflows of resources related to OPEB from the following
sources:
Deferred
Inflows
of Resources
Changes of assumptions937,000$
Net difference between projected and actual earnings on plan investments499,000
Total$ 1,436,000
Amounts reported as deferred inflows of resources are amortized in OPEB expense. The amortization period
differs depending on the source of the gain or loss. Deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Deferred
Fiscal YearOutflows/(Inflows)
Ended June 30:of Resources
2019(259,000)$
2020(259,000)
2021(259,000)
2022(258,000)
2023(134,000)
Thereafter(267,000)
71
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 14 – INDIVIDUAL FUND DISCLOSURES – DEFICIT FUND BALANCE
Funds that have a deficit fund balance at June 30, 2018, are as follows:
Deficit Fund
FundBalance
Major Funds:
Public Library Special Revenue Fund(4,260,642)$
Non-Major Governmental Funds:
Federal Grants Special Revenue Fund(2,525,889)
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.
NOTE 15 – DEFERRED COMPENSATION PLAN/DEFINED 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, 2018, there were 1139 participants in the plans. The
City’s contributions totaled $199,022, and employees’ contributions totaled $2,052,660.
NOTE 16 – 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 $1,625,564 for the property/liability program and the workers’ compensation
program (based on estimated wages).
At June 30, 2018, $90,000 was accrued by the City for general liability claims, and $2,685,229 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.
72
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 16 – SELF-INSURANCE (CONTINUED)
Changes in the reported claims liability since June 30, 2016, resulted in the following:
Claims liability as of June 30, 2016$ 2,449,815
Claims and changes in estimates during the year ended June 30, 20171,919,471
Claims and payments during the year ended June 30, 2017(1,178,530)
Claims liability as of June 30, 20173,190,756
Claims and changes in estimates during the year ended June 30, 20181,210,037
Claims and payments during the year ended June 30, 2018(1,625,564)
Claims liability as of June 30, 2018$ 2,775,229
NOTE 17 – NON-COMMITMENT DEBT
A.1915 Act Limited Obligation Improvements Bonds – Golden Valley
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 creddebt
it nor the taxing power of the City is pledged to the payment of the bonds. The source of the
service is from the property assessments within the Golden Valley Assessment District. The principal amount
of debt outstanding at June 30, 2018 was $260,000.
B.1915 Act Limited Obligation Improvements Bonds – Vermont/Everett
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
Ver
mont/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, 2018 was
$400,000.
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, 2018 was $14,500,000.
73
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 18 – SANTA CLARITA WATERSHED RECREATION AND CONSERVANCY AUTHORITY
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, 2018, 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.
NOTE 19 – SANTA CLARITA PUBLIC TELEVISION AUTHORITY
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, 2018, the City contributed $240,000. 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 20 – COMMITMENTS AND CONTINGENCIES
A.Construction Commitments
The City has active construction projects as of June 30, 2018. At year-end, the City’s commitments with
contractors for infrastructure projects are as follows:
Expenditures
Contractto Date as ofRemaining
ProjectAmountJune 30, 2018Commitments
Pavement712,039$ 595,155$ 116,884$
Bridges17,921,894 10,818,629 7,103,265
Sidewalks1,907,337 1,388,480 518,857
Medians261,142 69,379 191,763
Trails387,569 332,229 55,340
Traffic Signals894,009 223,325 670,684
74
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 20 – COMMITMENTS AND CONTINGENCIES (CONTINUED)
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, 2018, as follows:
Amount
General Fund3,720,968$
Other governmental funds40,858,222
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, 2018.
NOTE 21 – 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, 2018, classified in the accompanying financial statements as
follows:
RDA Successor
Agency
Cash and investments pooled with City90,040$
Restricted:
Cash and investments 13,437
Cash and investments with fiscal agent2,389,625
Total2,493,102$
75
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 21 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
B.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, 2018, $7,734,479 of these unallowable transfers remains due from the City to the Successor Agency.
C.Capital Assets
The capital assets of Successor Agency were transferred to the City. As a result, the beginning balances related
to the capital assets of the City and the Successor Agency were restated (see Note 22).
D.Long-Term Debt
Classification
BalanceBalanceDue WithinDue More
June 30, 2017AdditionsDeletionsJune 30, 2018One YearThan One Year
RDA Successor Agency:
Loans from the City of Santa Clarita16,054,063$ 360,334$ (222,338)$ 16,192,059$ -$ 16,192,059$
Tax Allocation Bonds:
Refunding Series 201734,800,000 - (820,000) 33,980,000 800,000 33,180,000
Less deferred amounts for
unamortized discounts847,868 - (33,660) 814,208 33,660 780,548
Total Tax Allocation Bonds35,647,868 - (853,660) 34,794,208 833,660 33,960,548
Total 51,701,931$ 360,334$ (1,075,998)$ 50,986,267$ 833,660$ 50,152,607$
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 in the General Fund and Developer Fees Special
Revenue Fund to reflect increased interest balances. The unpaid accrued interest of these notes is $2,749,354
and $1,431,572, respectively, and unpaid principal of $6,691,248 and $5,319,886, 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.
76
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 21 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(CONTINUED)
D.Long-Term Debt (Continued)
Tax Allocation Bonds – Series 2008 and Housing Set-Aside
As described under Tax Allocation Refunding Bonds – Series 2017 below, in February 2017, the Successor
Agency refunded the Tax Allocation Bonds Series 2008 of $26,685,000 and Tax Allocation Bonds Housing
Set-Aside of $7,910,000. 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, 2018, totaling $2,398,448. This amount will
be amortized over the life of the refunding debt, as a component of interest expense.
Tax Allocation Refunding Bonds – Series 2017
In February 2017, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2017, in the amount
of $34,800,000. Interest on the Tax Allocation Refunding Bonds, Series 2017, is paid as part of a variable rate
between 2 percent and 5 percent payable on April 1 and October 1 of each year commencing on April 1, 2017.
Principal payments are due annually in various amounts commencing October 1, 2017, through October 1,
2042. The unpaid balance as of June 30, 2018, was $33,980,000.
Tax Allocation Refunding Bonds – Series 2017 (Continued)
Proceeds from the Tax Allocation Refunding Bonds, Series 2017, along with other funds, were used to redeem
and defease through advance refunding all the outstanding balance of the Tax Allocation Bonds Series 2008.
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,PrincipalInterestTotal
2019800,000$ 1,366,094$ 2,166,094$
2020820,000 1,342,094 2,162,094
2021850,000 1,309,294 2,159,294
2022895,000 1,266,794 2,161,794
2023935,000 1,222,044 2,157,044
2024-20285,440,000 5,358,970 10,798,970
2029-20336,665,000 4,151,582 10,816,582
2034-20387,970,000 2,834,250 10,804,250
2039-20439,605,000 1,182,600 10,787,600
Total33,980,000$ 20,033,722$ 54,013,722$
E.Deficit Net Position
As of June 30, 2018, the RDA Successor Agency Private-Purpose Trust Fund had a deficit net position of
$38,699,755. This will be reduced with future receipt of distributions from the Redevelopment Property Tax
Trust Fund from the County and potential asset sales.
77
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 22 – RESTATEMENT
The City has restated certain balances within the Governmental Activities, Business-Type Activities, and Fiduciary
Funds as stated below.
The City adopted Governmental Accounting Standards Board (GASB) Statements No 74, Financial Reporting for
Postemployment Benefit Plans Other Than . 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions, and No. 85, Omnibus 2017, effective July 1, 2017. Refer to Note 13 for further disclosures
related to the Plan and related balances. As a result of the implementation, the City restated beginning net position
as noted below:
June 30, 2017
Previously July 1, 2017
Fiduciary Funds
PresentedRestatementRestated
Other Postemployment Benefits (OPEB) Trust Fund
Cash and Investments-OPEB-$ 35,974,073$ 35,974,073$
June 30, 2017
Previously July 1, 2017
Governmental ActivitiesPresentedRestatementRestated
Other Postemployment Benefit (OPEB) Liability-$ (10,780,840)$ (10,780,840)$
Net OPEB Asset6,476,774$ (6,476,775)$ -$
Internal Service Funds
Self Insurance
Other Postemployment Benefit (OPEB) Liability-$ (33,240)$ (33,240)$
Business Type Activities
Transit Fund
Other Postemployment Benefit (OPEB) Liability-$ (265,920)$ (265,920)$
The City identified capital assets that belonged to the City at the time of the RDA dissolution and have subsequently
reclassified as them as the City’s capital assets. As such, the beginning balances were restated related to the transfer
of the assets from the Redevelopment Successor Agency to the Governmental Activities as shown below:
Capital Asset Restatement
June 30, 2017
Previously July 1, 2017
Governmental ActivitiesPresentedRestatementRestated
Capital Assets - Depreciable Assets, net703,483,062$ 3,806,539$ 707,289,601$
Fiduciary Funds
Redevelopment Successor Agency
Site Improvements, net of accumulated depreciation86,041$ (86,041)$ -$
Infrastructure, net of accumulated depreciation3,720,497$ (3,720,497)$ -$
78
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 22 – RESTATEMENT (CONTINUED)
In addition, the City had restatements in the Transit Fund related to the recognition of Proposition C (MOSIP)
revenue and the closing out of expenditures related to construction in progress in the proper period as shown below:
Transit Recognition of Prior Year Revenue Restatement
June 30, 2017
Previously July 1, 2017
PresentedRestatementRestated
Business Type Activities
Transit Fund
Proposition C (MOSIP) Revenue-$ $ 584,181$ 584,181
Transit CIP Addition-Close Out Prior Year Expenditures
June 30, 2017
Previously July 1, 2017
PresentedRestatementRestated
Business Type Activities
Transit Fund
Capital Assets - Contractual Services-$
$ 1,656,315$ 1,656,315
The restatements for the Governmental Activities, Business-Type Activities, Transit Funds, and Fiduciary Funds
impacted beginning net position as noted below:
Effects of Restatements
June 30, 2017
Previously July 1, 2017
Governmental ActivitiesPresentedRestatementRestated
Net Position - Beginning of year$ 1,059,360,160$ (13,484,316)$1,045,875,844
Internal Service Funds
Self Insurance
Net Position - Beginning of year$ 1,158,590$ (33,240)$ 1,125,350
Business Type Activities
Transit Fund
Net Position - Beginning of year$ 78,386,470$ 1,974,576$ 80,361,046
Fiduciary Funds
Redevelopment Successor Agency
Trust Deficit - Beginning of year$ (36,146,893)$ (3,806,538)$ (39,953,431)
Other Postemployment Benefits (OPEB) Trust Fund
Net Position - Beginning of year$ -$ 35,974,073$ 35,974,073
79
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
$ 867,987
Taxes
$ 83,789,65683,374,312$ 84,657,643$
Licenses and permits(736,696)
7,523,5638,425,0387,688,342
Intergovernmental38,587
263,576338,564377,151
Charges for services2,011,265
6,355,4186,745,0918,756,356
Investment income
1,582,3391,582,339277,852(1,304,487)
Fines and forfeitures344,423
380,000450,000794,423
Other revenue274,886
89,09289,092363,978
99,568,300101,419,780102,915,7451,495,965
Total Revenues
Expenditures:
Operating:
Personnel1,847,839
41,997,75739,487,79937,639,960
Operating341,824
46,469,51149,429,91449,088,090
Capital outlay52,779
70,0003,538,3793,485,600
Capital Improvement Projects:
Personnel(182,673)
- -182,673
Operating6,687,330
1,501,34015,170,5218,483,191
704,487
Capital outlay
-6,603,4495,898,962
90,038,608114,230,062104,778,4769,451,586
Total Expenditures
Excess (deficiency) of revenues
over (under) expenditures9,529,692(12,810,282)(1,862,731)10,947,551
Other financing sources (uses):
Transfers in4,451,281(8,330,057)
11,278,50012,781,338
Transfers out(3,421,939)16,531,350
(14,718,409)(19,953,289)
(3,439,909)(7,171,951)1,029,3428,201,293
Total Other Financing Sources (Uses)
$ 6,089,783$ (19,982,233)(833,389)$ 19,148,844
Net Change in Fund Balances
Fund Balance at Beginning of Year149,015,266
Fund Balance at End of Year$ 148,181,877
80
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Investment income272,128$ 272,128$ 326,969$ 54,841$
Developer fees1,045,000 1,675,459 3,833,842 2,158,383
Other revenue368,724 688,724 688,724 -
2,636,3111,685,852 4,849,535 2,213,224
Total Revenues
Expenditures:
Operating:
Personnel939,907 88,884 37,835 51,049
Operating891,598 4,618,125 1,915,486 2,702,639
Debt service:
Debt services360,402 338,432 436,010 (97,578)
5,045,4412,191,907 2,389,331 2,656,110
Total Expenditures
Excess (deficiency) of revenues -
over (under) expenditures(506,055) (2,409,130) 2,460,204 4,869,334
Other financing sources (uses):
Transfers out(84,965) (84,068) (81,980) 2,088
$ (2,493,198)(591,020)$ 2,378,224 4,871,422$
Net Change in Fund Balances
Fund Balance at Beginning of Year2,718,868
Fund Balance at End of Year$ 5,097,092
81
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Investment income (loss)$ 14,380
$ 3,125$ 3,125$ 17,505
Developer fees408,948
-1,717,0952,126,043
Other revenue-
-- -
Total Revenues 3,125 1,720,220 2,143,548 423,328
Expenditures:
Operating:
Operating-
-2,222,5192,222,519
Capital Improvement Projects:
Personnel(54,889)
--54,889
Operating2,219,751
611,6502,500,463280,712
611,650 4,722,982 2,558,120 2 ,164,862
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(608,525)(3,002,762) (414,572) 2 ,588,190
Other financing sources (uses):
Transfer out-
(21,500)(83,087) (83,087)
(21,500) (83,087) (83,087) -
Total Other Financing Sources (Uses)
$ (630,025)$ (3,085,849) (497,659)$ 2,588,190
Net Change in Fund Balance
Fund Balance at Beginning of Year 5,539,379
Fund Balance at End of Year $ 5,041,720
82
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Taxes6,754,746$ 6,837,263$ 6,950,685$ 113,422$
Charges for services85,000 85,000 85,000 -
Investment income- - (10,995) (10,995)
Other revenue160,000 160,000 162,366 2,366
6,999,7467,082,2637,187,056 1 04,793
Total Revenues
Expenditures:
Operating:
Personnel235,071 270,671 255,472 15,199
Operating5,104,1435,475,1405,271,562 2 03,578
Capital outlay39,500 68,300 64,873 3,427
Capital Improvement Projects:
Operating74,250 74,250 77,820 (3,570)
Debt service:
Principal retirement108,996 108,996 143,804 (34,808)
5,561,9605,997,3575,813,531 1 83,826
Total Expenditures
Excess (deficiency) of revenues
over (under) expenditures1,437,7861,084,9061,373,525 2 88,619
Other financing sources (uses):
Transfers out(4,901) (15,330) (10,429) 4,901
Net Change in Fund Balances$ 1,432,885$ 1,069,576$ 1,363,096$ 293,520
Fund Balance at Beginning of Year(5,623,738)
Fund Balance at End of Year$ (4,260,642)
83
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #1 SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Taxes$ -$-$ 973,449$973,449
Special assessments20,742,58821,482,20220,323,322(1,158,880)
Investment income 337,500337,50081(337,419)
Other revenue--(18,476)(18,476)
Total Revenues21,080,08821,819,70221,278,376(541,326)
Expenditures:
Operating:
Personnel2,028,3941,719,2561,729,694(10,438)
Operating12,933,38713,995,00513,364,701630,304
Capital Improvement Projects:
Personnel--206,781(206,781)
Operating8,566,7509,245,9822,577,5016,668,481
Total Expenditures23,528,53124,960,24417,878,6777,081,567
Excess (deficiency) of revenues
over (under) expenditures(2,448,443)(3,140,542)3,399,6996,540,241
Other financing sources (uses):
Transfers in10,00010,00010,000 -
Transfers out(98,501)(187,702)(146,201)41,501
(88,501)(177,702)(136,201)41,501
Total Other Financing Sources (Uses)
$ (2,536,944)$ (3,318,244)3,263,498$ 6,581,742
Net Change in Fund Balances
Fund Balance at Beginning of Year31,833,614
Fund Balance at End of Year$ 35,097,112
84
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED JUNE 30, 2018
The Schedule of Changes in the Net OPEB Liability and Related Ratios is as follows:
2018
Changes in Total OPEB Liability
Service Cost$ 1,711,000
Interest2,633,073
Assumption changes(1,071,000)
Benefit payments(1,054,000)
2,219,073
Net Changes
47,054,000
Total OPEB Liability (beginning of year)
$ 49,273,073
Total OPEB Liability (end of year)
Plan Fiduciary Net Position
Contribution - employer$ 1,227,000
Net investment income2,963,587
Benefit payments(1,054,041)
Administrative expense(146,319)
Net Changes2,990,227
35,974,073
Plan Fiduciary Net Position (beginning of year)
$ 38,964,300
Plan Fiduciary Net Position (end of year)
$ 10,308,773
Net OPEB Liability - ending (a)-(b)
Plan fiduciary net position as a percentage of the total OPEB liability79.08%
Covered employee payroll*$ 30,634,000
Net OPEB liability as a percentage of covered-employee payroll33.65%
Notes to Schedule:
Future years' information will be displayed up to 10 years as information becomes available.
*For the 12 month period ending on June 30, 2018 (Measurement Date).
85
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS - OPEB
LAST TEN YEARS*
FOR THE YEAR ENDED JUNE 30, 2018
The Schedule of OPEB Contributions is as follows:
Fiscal Year Ended June 30
2018
Actuarially Determined Contribution (ADC)1,755,000$
Contributions in relation to the actuarially determined contribution**1,227,000
Contribution deficiency/(excess)528,000$
Covered-employee payroll***30,634,000$
Contribution as a percentage of covered-employee payroll4.01%
Notes to Schedule:
*Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal
Year 2018 were from the June 30, 2018 actuarial valuation.
**Actual 2017/18 contribution
***For the 12 months period ending on June 30, 2018 (fiscal year end)
Methods and Assumptions for 2017/18 Actuarially Determined
Contributions
Valuation DateJune 30, 2016
Actuarial Cost MethodEntry Age Normal, Level Percentage of Payroll
Amortization MethodLevel percent of pay
Amortization Period16-year fixed period for 2017/18
Asset Valuation Method
Investment gains and losses spread over 5-year rolling
period
Discount Rate6.50%
General Inflation3.00%
Non-Medicare - 6.5% for 2018, decreasing to an ulti
mate rate of
Medical Trend
years
5.0% in 2021 and later
Medicare - 6.7% for 2018, decreasing to an ultimate rate of 5.0%
in 2021 and later years
MortalityCalPERS 1997-2011 experience study
Mortality Improvement
Mortality projected fully generational with Scale MP-14 modified
to converge in 2022
Historical information is required only for measurement periods for which GASB 75 is applicable.
Future years' information will be displayed up to 10 years as information becomes available.
86
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF MONEY WEIGHTED RATE OF RETURN
LAST TEN YEARS*
FOR THE YEAR ENDED JUNE 30, 2018
The Schedule of Money Weighted Rate of Return for the OPEB plan is as follows:
Last Ten Years*
20182017
Annual money-weighted rate of return -
net of investment expense8.26%12.81%
Notes to Schedule
*Fiscal year 2017 was the first year of GASB 74 implementation, therefore, only two years are shown.
87
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, 2018
The Schedules of Changes in the City’s Net Pension Liability and Related Ratios are as follows:
Measurement DateJune 30, 2017June 30, 2016June 30, 2015June 30, 2014
Total Pension Liability
Service cost$ 4,921,221$ 4,409,399$ 4,418,053$ 4,462,544
Interest12,166,75211,315,20710,443,6809,588,693
Difference between Expected and Actual Experience(1,505,660) (305,665) 416,626-
Changes of Assumptions11,654,992-(3,009,808)-
Benefit Payments, Including Refunds of Employee Contributions(4,406,046)(3,347,335)(2,971,092) (2,561,655)
22,831,25912,071,6069,297,45911,489,582
Net Change in Total Pension Liability
159,757,441 147,685,835138,388,376126,898,794
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)$ 182,588,700$ 159,757,441$147,685,835$ 138,388,376
Plan Fiduciary Net Postion
Contributions - Employer$ 4,484,866$ 3,959,503$ 3,740,145$ 3,562,246
Contributions - Employee2,224,7212,252,5222,164,107 2,339,435
Net Investment Income13,510,656622,2822,506,23916,243,165
Administrative expenses(177,534) (71,202) (131,529)-
Benefit Payments, Including Refunds of Employee Contributions(4,406,046)(3,347,335)(2,971,092) (2,561,655)
Plan to Plan Resource Movement- - 9,685-
Net Change in Fiduciary Net Position15,636,6633,415,7705,317,55519,583,191
Plan Fiduciary Net Postition - Beginning120,245,541 116,829,771111,512,21691,929,025
Plan Fiduciary Net Postion - Ending (b)$ 135,882,204$ 120,245,541$116,829,771$ 111,512,216
$
Net pension liability - ending (a) - (b)$ 46,706,496$ 39,511,900$ 30,856,06426,876,160
74.42%75.27%79.11%80.58%
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
$ 29,966,168$ 27,934,377$ 27,234,699$ 26,879,556
Covered Payroll
Plan Net Pension Liability as a Percentage of Covered Payroll155.86%141.45%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 7.65% to 7.15% during the measurement period ending June 30, 2018. The
discount rate was revised from 7.5% to 7.65% during the measurement period ending June 30, 2015.
*Fiscal Year 2014-15 was the first year of implementation; therefore, only four years are shown until a full 10-year trend is compiled.
88
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF CITY CONTRIBUTIONS - PENSIONS
LAST TEN YEARS*
AS OF THE FISCAL YEAR ENDED JUNE 30, 2018
The Schedule of City Contributions during the fiscal year is as follows:
June 30, 2018June 30, 2017June 30, 2016June 30, 2015
Actuarially determined contribution4,662,191$ 4,484,140$ 3,958,892$ 3,740,138$
Contributions in relation to the actuarially determined contribution(9,662,191) (4,484,140) (3,958,892) (3,740,138)
Contribution deficiency (excess)$ (5,000,000)$ -$ -$ -
Covered Payroll$ 29,655,553$ 29,966,168$ 27,934,377$ 27,234,699
Contributions as a Percentage of Covered Payroll32.58%14.96%14.17%13.73%
Valuation Date:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2017-18 were from
June 30, 2016 public agency valuations.
Actuarial Cost methodEntry Age Normal
Amortization MethodLevel Percentage of Payroll, Closed
Remaining Amortization Period18 years
Asset Valuation MethodMarket Value of Assets
Inflation2.75%
Salary increasesVaries by Entry Age and Service
Payroll growth3.00%
Investment Rate of Return7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
Retirement AgeThe probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period from 1997
to 2011.
MortalityThe probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to
2011. Pre-retirement and post retirement mortality rates include 20 years of projected mortality
improvement using Scale BB published by the Society of Actuaries.
89
June 30, 2014June 30, 2013June 30, 2012June 30, 2011June 30, 2010June 30, 2009
$3,562,246$3,319,326$3,224,628$2,916,852$2,919,550$ 2,865,328
(3,562,246)(3,319,326)(3,224,628)(2,916,852)(2,919,550)(2,865,328)
$ -$-$-$-$-$ -
$26,879,556$25,256,659$24,807,314$24,940,516$25,336,721$26,145,818
13.25%13.14%13.00%11.70%11.52%10.96%
90
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2018
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 budgetary control for the Capital Improvement Program is at the program level.
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. The City does not require additional appropriations through the budget process for bond funds, grant funds,
trust and agency funds, and capital funds. Legislative action by the City Council to issue bond funds, accept grants,
and/or authorize capital projects is considered as authority to expend funds for those purposes.
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.
91
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2018
For the year ended June 30, 2018, expenditures exceeded appropriations in the following categories (legal level of
budgetary control) of the respective funds:
Excess
Expenditures
Over
FundAppropriationsExpendituresAppropriations
Major Governmental Funds:
Bridge and Thoroughfare Special Revenue Fund
Debt Service - Debt Services338,432$ 436,010$ (97,578)$
Public Library Special Revenue Fund
Capital Improvement Projects74,25077,820 (3,570)
Debt Service - Principal Retirement108,996143,804(34,808)
Landscape Maintenance District #1 Special Revenue Fund
Operating - Personnel 1,719,2561,729,694(10,438)
Non-Major Governmental Funds:
Traffic Safety Special Revenue Fund
Transfers Out400,000578,725(178,725)
Stormwater Special Revenue Fund
Operating - Personnel 1,294,5991,334,197(39,598)
Supplemental Law Grant Special Revenue Fund
Operating - Operating406,050427,773(21,723)
Housing Successor Agency Special Revenue Fund
Operating - Operating-1,943 (1,943)
Public Financing Authority Debt Service Fund
Payment to Refunding Bond Escrow Agent-35,099(35,099)
Transfers Out-15,593,241(15,593,241)
92
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CITY OF SANTA CLARITA, CALIFORNIA
NON-MAJOR GOVERNMENTAL FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2018
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%) 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.
Street Lighting District - To account for property tax and levy of assessment receipts and disbursements related to
the streetlights maintenance program.
Measure M Local Return - To account for the half-cent sales tax revenue that Los Angeles County voters approved
in November 2016 to meet the transportation needs of Los Angeles County.
SB1 Road Repair and Activity - To account for monies received and expended from the State SB1 Road and Repair
Rehabilitation to fund various maintenance, rehabilitations, and safety needs on streets and roads.
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 8) – 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.
93
CITY OF SANTA CLARITA, CALIFORNIA
NON-MAJOR GOVERNMENTAL FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2018
Special Revenue Funds (Continued)
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.
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.
94
CITY OF SANTA CLARITA, CALIFORNIA
NON-MAJOR GOVERNMENTAL FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2018
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.
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.
95
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CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
Special
BikewayGas TaxProposition AAssessment
Assets:
Cash and investments155,067$ $ 561,658$ 265,146$ 1,497,574
Receivables:
11,306 - -
Accounts, net-
Interest6622,256 1,131 6,304
Taxes- - - 5,881
Loans- - - -
Prepaid costs- - - -
Due from other governments 10,676 - - -
Restricted assets:
Cash and investments- - - -
Cash and investments with fiscal agents- - - -
$ 166,405$ 575,220$ 266,277$ 1,509,759
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities$ 119,276$ 156,074$ 2,600$ 5,073
Due to other governments- - - -
Due to other funds- - - -
119,276156,074 2,600 5,073
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues- - - -
- - - -
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable- - - -
Restricted 47,129419,146263,6771,504,686
Assigned- - - -
Unassigned- - - -
Total Fund Balances (Deficit) 47,129419,146 263,677 1,504,686
Total Liabilities, Deferred Inflows of
$ 166,405$ 575,220$ 266,277$ 1,509,759
Resources, and Fund Balances
(Continued)
96
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
StreetSB1 Road
LightingMeasure MRepair and
DistrictLocal ReturnActivityState Park
Assets:
Cash and investments$ 6,087,032$ 2,277,938$ 797,678$ -
Receivables:
Accounts, net26,560 - - -
Interest30,009 9,721 3,404 -
Taxes173,617 - - -
Loans- - - -
Prepaid costs- - - -
Due from other governments- 458,551- 183,764
Restricted assets:
Cash and investments15,593,241 - - -
Cash and investments with fiscal agents- - - -
$ 21,910,459$ 2,287,659$ 1,259,633$ 183,764
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities$ 47,935$ -$ 323,167$ 9,586
Due to other governments- - - -
Due to other funds- - - 52,494
47,935 323,167- 62,080
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues- - - 120,521
Total Deferred Inflows of Resources- - - 120,521
Fund balances (deficit):
Nonspendable- - - -
Restricted21,862,524 2,287,659 936,466 1,163
Assigned- - - -
Unassigned- - --
21,862,524 2,287,659 936,466 1,163
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
$ 21,910,459$ 2,287,659$ 1,259,633$ 183,764
Resources, and Fund Balances
(Continued)
97
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
TDATraffic SafetyCDBGAQMD
Assets:
Cash and investments$ 6,464,741$ -$-$ 736,312
Receivables:
Accounts, net- - - -
Interest27,587 - - 3,142
Taxes-90,285 - -
- 400,336 -
Loans-
Prepaid costs- - - -
Due from other governments--133,506 71,228
Restricted assets:
Cash and investments- - - -
Cash and investments with fiscal agents- - - -
$ 6,492,328$ 90,285$ 533,842$ 810,682
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities$ 1,206,656$ -$ 84,081$ 5,075
Due to other governments- - - -
Due to other funds-90,285 49,425 -
1,206,65690,285 133,506 5,075
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues- 400,336- -
--400,336 -
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable- - - -
Restricted5,285,672 - 805,607-
Assigned- - - -
Unassigned- - - -
5,285,672 - 805,607-
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
$ 6,492,328$ 90,285$ 533,842$ 810,682
Resources, and Fund Balances
(Continued)
98
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
Surface
Assets:
TransportationBJA LawSupplemental
Cash and investments
StormwaterProgramEnforcementLaw Grant
Receivables:
$ 5,532,112$ 26,861$ -$ 150,691
Accounts, net
Interest
195,471 - - -
Taxes
23,592 - - 6 43
Loans
128,956 - - -
Prepaid costs
- - - -
Due from other governments
5,882 - - -
Restricted assets:
- - - -
Cash and investments
Cash and investments with fiscal agents
- - - -
Total Assets
- - - -
$ 5,886,013$ 26,861$ -$ 151,334
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities
Due to other governments$ 226,653$ -$-$ 34,163
- -- -
Due to other funds
- -- -
Total Liabilities
226,653 - - 34,163
Deferred Inflows of Resources:
Unavailable revenues
- - - -
Total Deferred Inflows of Resources
- - - -
Fund balances (deficit):
Nonspendable
5,882 - - -
Restricted
117,171
5,653,478 26,861-
Assigned
- ---
Unassigned
- ---
Total Fund Balances (Deficit)
5,659,360 26,861-117,171
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$ 5,886,013$ 26,861$ -$ 151,334
(Continued)
99
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
Public
LibraryEducation and
HOMEFacilities FeesGovernmentProposition C
Assets:
Cash and investments$ 57,518$ 1,617,327$ 454,0233,773,023
Receivables:
Accounts, net- - - -
Interest245 6,902 1,937 14,088
Taxes- 108,099- -
Loans 2,427,698 - - -
Prepaid costs- - - -
Due from other governments- - - 1,399,743
Restricted assets:
Cash and investments- - - -
Cash and investments with fiscal agents- - - -
$ 2,485,461$ 1,624,229$ 564,059$ 5,186,854
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities$ -$-$ 521$ 114,546
Due to other governments- - - -
- - - 1,301,809
Due to other funds
- - 5 21 1,416,355
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues 2,427,698 - - 1,291,461
2,427,698 - - 1,291,461
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable- - - -
Restricted57,763 1,624,229 563,538 2,479,038
Assigned- - - -
Unassigned- - - -
Total Fund Balances (Deficit)57,763 1,624,229 563,538 2,479,038
Total Liabilities, Deferred Inflows of
$ 2,485,461$ 1,624,229$ 564,059$ 5,186,854
Resources, and Fund Balances
(Continued)
100
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
Tourism
Marketing
Federal GrantsMeasure RDistrictOSPD
Assets:
Cash and investments
$ 7,079,612-$ 1,118,967$ 3,640,232$
Receivables:
Accounts, net
-- - 6,666
Interest
30,211- 4,775 15,534
Taxes
-- 64,095 63,387
Loans
-- - -
Prepaid costs
-- - -
Due from other governments
-3,130,513 - -
Restricted assets:
Cash and investments
-- - -
Cash and investments with fiscal agents
-- - -
Total Assets
$ 7,109,8233,130,513$ 1,187,837$ 3,725,819$
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities$ 730,3621,046,169$ 20,522$ 49,613$
Due to other governments
-- - -
Due to other funds -2,055,459 - -
730,3623,101,628 20,522 49,613
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues -2,554,774 - -
Total Deferred Inflows of Resources -2,554,774 - -
Fund balances (deficit):
Nonspendable -- - -
Restricted 1,167,3156,379,461 3,676,206
Assigned -- - -
Unassigned -(2,525,889) - -
6,379,461(2,525,889) 1,167,315 3,676,206
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
$ 7,109,8233,130,513$ 1,187,837$ 3,725,819$
Resources, and Fund Balances
(Continued)
101
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Special Revenue Funds
HousingTourism
MiscellaneousParkSuccessorMarketing
GrantsDedicationAgencyBureau
Assets:
$ 165,093$ 11,224,662$ 476,628$ 48,227
Cash and investments
Receivables:
- - - -
Accounts, net
-47,899 2,034 2 06
Interest
- - - -
Taxes
- - - -
Loans
- - - -
Prepaid costs
81,950 - - -
Due from other governments
Restricted assets:
--206,386 -
Cash and investments
--- -
Cash and investments with fiscal agents
$ 247,043$ 11,272,561$ 685,048$ 48,433
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
$ 38,397$ 40,855$ -$-
Accounts payable and accrued liabilities
-- 34,479 -
Due to other governments
--- -
Due to other funds
38,397 40,855 34,479 -
Total Liabilities
Deferred Inflows of Resources:
76,549 - - -
Unavailable revenues
76,549 - - -
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable - - - -
Restricted132,09711,231,706650,569 48,433
Assigned - - - -
Unassigned - - --
Total Fund Balances (Deficit)132,09711,231,706650,569 48,433
Total Liabilities, Deferred Inflows of
$ 247,043$ 11,272,561$ 685,048$ 48,433
Resources, and Fund Balances
(Continued)
102
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED)
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2018
Debt Service
Capital Projects FundsFund
GeneralPublicPublicTotal Non-major
CapitalFinancingFinancingGovernmental
ProjectsAuthorityAuthorityFunds
Assets:
Cash and investments$ 1,134,441$ 10$ 9,651$ 55,352,224
Receivables:
Accounts, net- - - 240,003
Interest- - - 232,282
Taxes- - - 634,320
Loans- - -2,828,034
Prepaid costs- - - 5,882
Due from other governments- - -5,469,931
Restricted assets:
Cash and investments- - -15,799,627
Cash and investments with fiscal agents- - 871,961 871,961
$ 1,134,441$ 10$ 881,612$ 81,434,264
Total Assets
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable and accrued liabilities$ 54,782$ -$ 4,316,106-$
Due to other governments- - - 34,479
Due to other funds- - -3,549,472
54,782 - -7,900,057
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues- - -6,871,339
- - -6,871,339
Total Deferred Inflows of Resources
Fund balances (deficit):
Nonspendable- - - 5,882
Restricted- - 881,61268,103,206
Assigned1,079,659 10 -1,079,669
Unassigned-- -(2,525,889)
1,079,659 10 881,61266,662,868
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
$ 1,134,441$ 10$ 881,612$ 81,434,264
Resources, and Fund Balances
103
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Special Revenue Funds
Special
BikewayGas TaxProposition AAssessment
Revenues:
Taxes-$ $-$-$ -
Special assessments- -- 454,688
Intergovernmental 51,7334,264,4434,096,462 -
Charges for services- - - -
Investment income (loss) (1,447) 4,416 13,980(470)
Fines and forfeitures- - - -
Developer fees- - - -
Other revenue-251,002 - -
50,2864,519,861 4,110,442454,218
Total Revenues
Expenditures:
Current:
General government- 39,836-164,160
Public safety----
Recreation and community services----
Public works 71,655 6,140,120-390
Community development- ---
Neighborhood services- - -22,036
Capital outlay 15,327 83,499 70,397 -
Debt service:
Principal retirement- - - -
Interest and fiscal charges- - - -
86,982 6,263,455 70,397186,586
Total Expenditures
Excess (Deficiency) of Revenues Over
(36,696) (1,743,594) 4,040,045267,632
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued- - - -
Payment to refunding bond escrow agent- - - -
100,000- 20,420
Transfers in-
Transfers out-(172,177) (5,067,401)(2,219)
-(72,177) (5,067,401) 18,201
Total Other Financing Sources (Uses)
(36,696) (1,815,771) (1,027,356)285,833
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year 83,8252,234,917 1,291,0331,218,853
Fund Balances, End of Year$ 47,129$ 419,146$ 263,677$ 1,504,686
(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 30, 2018
Special Revenue Funds
StreetSB 1 Road
LightingMeasure MRepair and
DistrictLocal ReturnActivityState Park
Revenues:
Taxes$-$-$ -
$ -
Special assessments5,513,690- - -
Intergovernmental 2,306,349- 1,267,715 123,505
Charges for services10,000 - - -
Investment income (loss)8,499(18,690) ( 8,082) -
Fines and forfeitures- - - -
Developer fees- - - -
Other revenue- - - -
5,532,1892,287,659 1,259,633 123,505
Total Revenues
Expenditures:
Current:
General government3,458,235 - - -
Public safety- - - -
Recreation and community services- - - 63,243
Public works1,241,548-323,167 -
Community development--- -
Neighborhood services--- -
- -
Capital outlay--
Debt service:
- - - -
Principal retirement
Interest and fiscal charges- - - -
4,699,783-323,167 63,243
Total Expenditures
Excess (Deficiency) of Revenues Over
832,4062,287,659936,46660,262
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued- - - -
Payment to refunding bond escrow agent- - - -
Transfers in15,593,241 - - -
Transfers out(1,053,034) - - -
14,540,207 - - -
Total Other Financing Sources (Uses)
15,372,6132,287,659 936,466 60,262
Net Change in Fund Balances
6,489,911 - (59,099)-
Fund Balances (Deficit), Beginning of Year
$ 21,862,524$ 2,287,659$ 936,466$ 1,163
Fund Balances, End of Year
(Continued)
105
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 30, 2018
Special Revenue Funds
TDATraffic SafetyCDBGAQMD
Revenues:
Taxes
$ -$-$-$ -
Special assessments
-- - -
Intergovernmental
7,209,974- 613,838277,988
Charges for services
- - - -
Investment income (loss)
(36,953) 4 61-(515)
Fines and forfeitures
-578,264--
Developer fees
----
Other revenue
----
Total Revenues7,173,021578,725 613,838277,473
Expenditures:
Current:
General government
- - - -
Public safety
- - - -
Recreation and community services
- - - -
Public works
7,421,375 - - 60,650
Community development
- 510,953- -
Neighborhood services
- - - -
Capital outlay
67,332 - - 4 23
Debt service:
Principal retirement
- 100,000- -
Interest and fiscal charges
--2,885 -
Total Expenditures7,488,707-613,838 61,073
Excess (Deficiency) of Revenues Over
(Under) Expenditures(315,686) 578,725-216,400
Other Financing Sources (Uses):
Bonds issued
- - - -
Payment to refunding bond escrow agent- - - -
Transfers in- - - -
Transfers out-(578,725) - -
Total Other Financing Sources (Uses)-(578,725) - -
Net Change in Fund Balances(315,686) - 216,400-
Fund Balances (Deficit), Beginning of Year
5,601,358 - 589,207-
Fund Balances, End of Year$ 5,285,672$ -$-$ 805,607
(Continued)
106
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 30, 2018
Special Revenue Funds
Surface
TransportationBJA LawSupplemental
StormwaterProgramEnforcementLaw Grant
Revenues:
Taxes$ --$ -$ -$
Special assessments -3,319,631 - -
Intergovernmental 76,203- 1,525 331,017
Charges for services -- - -
Investment income (loss) -4,244 - (164)
Fines and forfeitures -- - -
Developer fees -- - -
Other revenue -211,348 - -
76,2033,535,223 1,525 330,853
Total Revenues
Expenditures:
Current:
General government -32,947 - -
Public safety -- 1,525 427,773
Recreation and community services -- - -
Public works -3,396,392 - -
Community development -- - -
Neighborhood services -- - -
Capital outlay -- - -
Debt service:
Principal retirement -- - -
Interest and fiscal charges -- - -
-3,429,339 1,525 427,773
Total Expenditures
Excess (Deficiency) of Revenues Over
76,203105,884 - (96,920)
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued -- - -
Payment to refunding bond escrow agent -- - -
Transfers in -3,690 - -
Transfers out -(59,911) - -
Total Other Financing Sources (Uses) -(56,221) - -
Net Change in Fund Balances 76,20349,663 - (96,920)
Fund Balances (Deficit), Beginning of Year (49,342)5,609,697 - 214,091
Fund Balances, End of Year$ 26,8615,659,360$ -$ 117,171$
(Continued)
107
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 30, 2018
Special Revenue Funds
Public
LibraryEducation and
HOMEFacilities FeesGovernmentProposition C
Revenues:
Taxes$-$-$ 450,688$ -
Special assessments-- - -
Intergovernmental7,700- -5,250,847
Charges for services- - - -
Investment income (loss)15(613)16,794(246)
Fines and forfeitures- - - -
Developer fees-381,026 - -
Other revenue- - -
-
7,715380,413467,4825,250,601
Total Revenues
Expenditures:
Current:
General government-920212,429 -
Public safety- - - -
Recreation and community services- - - -
Public works- - -239,014
Community development- - - -
Neighborhood services- - - -
Capital outlay- -1,502,801165,715
Debt service:
Principal retirement- - - -
Interest and fiscal charges- - - -
-9201,715,230404,729
Total Expenditures
Excess (Deficiency) of Revenues Over
7,715379,493(1,247,748)4,845,872
(Under) Expenditures
Other Financing Sources (Uses):
Bonds issued- - - -
Payment to refunding bond escrow agent- - - -
Transfers in- - - -
Transfers out- - -(2,567,131)
Total Other Financing Sources (Uses)- - -(2,567,131)
Net Change in Fund Balances7,715379,493(1,247,748)2,278,741
Fund Balances (Deficit), Beginning of Year50,0481,244,7361,811,286200,297
Fund Balances, End of Year$57,763$ 1,624,229$ 563,538$ 2,479,038
(Continued)
108
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 30, 2018
Special Revenue Funds
Tourism
FederalMarketing
GrantsMeasure RDistrictOSPD
Revenues:
Taxes
$ --$ -$ -$
Special assessments
-- - 2,556,110
Intergovernmental
2,544,9967,608,727 - -
Charges for services
-- 649,168 134,587
Investment income (loss)
7,879- 477 11,314
Fines and forfeitures
-- - -
Developer fees
-- - -
Other revenue
-- - 1,000
Total Revenues
2,552,8757,608,727 649,645 2,703,011
Expenditures:
Current:
General government
-- 460,302 459,071
Public safety
-- - -
Recreation and community services
-- - -
Public works
2,954,1389,955,807 - -
Community development
-- - -
Neighborhood services
-- - -
Capital outlay
-37,393 - 2,105,206
Debt service:
Principal retirement
-- - -
Interest and fiscal charges
-- - -
Total Expenditures
2,954,1389,993,200 460,302 2,564,277
Excess (Deficiency) of Revenues Over
(Under) Expenditures (401,263)(2,384,473) 189,343 138,734
Other Financing Sources (Uses):
Bonds issued
-- - -
Payment to refunding bond escrow agent
-- - -
Transfers in -- - -
Transfers out -- - (908,424)
Total Other Financing Sources (Uses) -- - (908,424)
(401,263)(2,384,473) 189,343 (769,690)
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year 6,780,724(141,416) 977,972 4,445,896
Fund Balances, End of Year$ 6,379,461(2,525,889)$ 1,167,315$ 3,676,206$
(Continued)
109
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 30, 2018
Special Revenue Funds
HousingTourism
MiscellaneousParkSuccessorMarketing
GrantsDedicationAgencyBureau
Revenues:
$-$-
$-$-
Taxes
-- - -
Special assessments
81,532- - -
Intergovernmental
-
- -9,150
Charges for services
(16,552)(144)35
-
Investment income (loss)
----
Fines and forfeitures
-3,547,823--
Developer fees
18,689-44,4682,500
Other revenue
100,2213,531,27144,32411,685
Total Revenues
Expenditures:
Current:
- - -5,070
General government
95,499 - - -
Public safety
- - - -
Recreation and community services
182,757 65,755 - -
Public works
- - 1,943 -
Community development
- 13,267 - -
Neighborhood services
-94,499 - -
Capital outlay
Debt service:
- - - -
Principal retirement
- - - -
Interest and fiscal charges
278,256173,521 1,9435,070
Total Expenditures
Excess (Deficiency) of Revenues Over
(178,035)3,357,75042,3816,615
(Under) Expenditures
Other Financing Sources (Uses):
- - - -
Bonds issued
- - - -
Payment to refunding bond escrow agent
- - - -
Transfers in
- - - -
Transfers out
- - - -
Total Other Financing Sources (Uses)
(178,035)3,357,75042,3816,615
Net Change in Fund Balances
Fund Balances (Deficit), Beginning of Year310,1327,873,956608,18841,818
Fund Balances, End of Year$ 132,097$ 11,231,706$ 650,569$ 48,433
(Continued)
110
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 30, 2018
Debt Service
Capital Projects FundFund
GeneralPublic Public Total Non-major
CapitalFinancingFinancingGovernmental
ProjectsAuthorityAuthorityFunds
Revenues:
$ --$ -$ 450,688$
Taxes
-- - 11,844,119
Special assessments
-- - 36,114,554
Intergovernmental
-- - 802,905
Charges for services
-- - (15,762)
Investment income (loss)
-- - 578,264
Fines and forfeitures
-- - 3,928,849
Developer fees
-- - 529,007
Other revenue
-- - 54,232,624
Total Revenues
Expenditures:
Current:
-- - 4,832,970
General government
-- - 524,797
Public safety
-- - 63,243
Recreation and community services
-1,881,512 - 33,934,280
Public works
-- - 512,896
Community development
-4,007 - 39,310
Neighborhood services
-13,650 - 4,156,242
Capital outlay
Debt service:
-- 2,038,803 2,138,803
Principal retirement
-- 1,065,142 1,068,027
Interest and fiscal charges
-1,899,169 3,103,945 47,270,568
Total Expenditures
Excess (Deficiency) of Revenues Over
-(1,899,169) (3,103,945) 6,962,056
(Under) Expenditures
Other Financing Sources (Uses):
-- 15,848,271 15,848,271
Bonds issued
-- (35,099) (35,099)
Payment to refunding bond escrow agent
705,2061,051,244 3,755,484 21,229,285
Transfers in
Transfers out (705,206)(75,000) (15,593,241) (26,782,469)
-976,244 3,975,415 10,259,988
Total Other Financing Sources (Uses)
-(922,925) 871,470 17,222,044
Net Change in Fund Balances
102,002,584 10,142 49,440,824
Fund Balances (Deficit), Beginning of Year
$ 101,079,659$ 881,612$ 66,662,868$
Fund Balances, End of Year
111
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental142,629$ 142,994$ 51,733$ $ (91,261)
Investment income (loss) - - (1,447) (1,447)
Total Revenues142,629 142,994 50,286 (92,708)
Expenditures:
Capital Improvement Projects:
Personnel - - 1,907 (1,907)
Operating141,432 237,435 85,075 152,360
141,432 237,435 86,982 150,453
Total Expenditures
$ 1,197$ (94,441) (36,696)$ 57,745
Net Change in Fund Balance
Fund Balance at Beginning of Year83,825
Fund Balance at End of Year $ 47,129
112
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental4,713,352$ 4,896,772$ 4,264,443$ (632,329)$
Investment income1,250 1,250 4,416 3,166
Other revenue- 258,029 251,002 (7,027)
5,156,0514,714,602 4,519,861 (636,190)
Total Revenues
Expenditures:
Operating:
Personnel2,301,110 2,219,101 2,148,652 70,449
Operating2,012,790 2,060,870 2,034,959 25,911
Capital outlay119,000 209,577 82,796 126,781
Capital Improvement Projects:
Personnel- - 142,970 (142,970)
Operating297,728 2,238,765 1,854,078 384,687
6,728,3124,730,628 6,263,455 464,857
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,572,261)(16,026) (1,743,594) (171,333)
Other financing sources (uses):
Transfers in
100,000100,000 100,000 -
Transfer out(110,112) (215,289) (172,177) 43,112
(115,289)(10,112) (72,177) 43,112
Total Other Financing Sources (Uses)
$ (1,687,550)(26,138)$ (1,815,771) (128,221)
Net Change in Fund Balance
Fund Balance at Beginning of Year2,234,917
Fund Balance at End of Year 419,146$
113
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental$4,074,282$ 4,084,468$ 4,096,462$ 11,994
Investment income- - 13,980 13,980
Total Revenues4,074,2824,084,4684,110,442 25,974
Expenditures:
Capital Improvement Projects:
Operating13,870229,661 70,397 159,264
Excess (Deficiency) of Revenues
Over (Under) Expenditures
4,060,4123,854,8074,040,045 185,238
Other financing sources (uses):
Transfer out(4,060,413)(5,169,660)(5,067,401) 102,259
$ (1)$ (1,314,853)(1,027,356)$ 287,497
Net Change in Fund Balance
Fund Balance at Beginning of Year1,291,033
Fund Balance at End of Year $ 263,677
114
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Special assessments438,129$ 438,129$ 454,688$ 16,559$
Investment income7,576 7,576 (470) (8,046)
445,705445,705 454,218 8,513
Total Revenues
Expenditures:
Operating:
Personnel56,124 52,949 45,281 7,668
Operating425,762 215,807 120,115 95,692
Capital outlay- 20,800 20,800 -
Capital Improvement Projects:
Operating- 1,500 390 1,110
291,056481,887 186,586 104,470
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
154,649(36,182) 267,632 112,983
Other financing sources (uses):
Transfers in
20,42020,420 20,420 -
Transfer out(1,095) (3,314) (2,219) (1,095)
17,10619,325 18,201 (1,095)
Total Other Financing Sources (Uses)
$ 171,755(16,857)$ 285,833 111,888$
Net Change in Fund Balance
Fund Balance at Beginning of Year1,218,853
Fund Balance at End of Year 1,504,686$
115
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
STREET LIGHTING DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Special assessments$ 5,425,454$ 5,425,454$ 5,513,690$ 88,236
Charges for services-15,000 10,000 (5,000)
Investment income64,74564,745 8,499 (56,246)
5,490,1995,505,199 5,532,189 26,990
Total Revenues
Expenditures:
Operating:
Personnel241,601 216,699 1 83,995 32,704
Operating 5,992,61010,513,5514,515,788 5 ,997,763
6,234,21110,730,2504,699,783 6 ,030,467
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(744,012)(5,225,051) 8 32,406 6 ,057,457
Other financing sources (uses):
Transfers in
795,8281,893,53814,728,040(12,834,502)
Transfer out(800,898)(2,951,642)(187,833) (2,763,809)
(5,070)(1,058,104)14,540,207(15,598,311)
Total Other Financing Sources (Uses)
Net Change in Fund Balance$ (749,082)$ (6,283,155)15,372,613$ (9,540,854)
Fund Balance at Beginning of Year6,489,911
Fund Balance at End of Year $ 21,862,524
116
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MEASURE M LOCAL RETURN SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Bud
geted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental2,587,641$ 2,735,777$ 2,306,349$ (429,428)$
Investment income- - (18,690) (18,690)
2,735,7772,587,641 2,287,659 (448,118)
Total Revenues
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,735,7772,587,641 2,287,659 (448,118)
$ 2,735,7772,587,641$ 2,287,659 (448,118)$
Net Change in Fund Balance
Fund Balance at Beginning of Year-
Fund Balance at End of Year 2,287,659$
117
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
SB1 ROAD REPAIR AND ACTIVITY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental$ 1,233,885$ 1,233,885$ 1,267,715$ 33,830
Investment income- - (8,082) (8,082)
1,233,8851,233,885 1,259,633 25,748
Total Revenues
Expenditures:
Capital Improvement Projects:
Operating-1,233,885 3 23,167 910,718
Total Expenditures-1,233,885 3 23,167 910,718
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,233,885-9 36,466 936,466
Net Change in Fund Balance$ 1,233,885$ -9 36,466$ 936,466
Fund Balance at Beginning of Year -
Fund Balance at End of Year $ 936,466
118
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental312,393$ 62,393$ 123,505$ 61,112$
Expenditures:
Operating:
Personnel35,42336,953 36,373 580
Operating26,900 26,900 26,870 30
Capital Improvement Projects:
Personnel250,000- - -
-250,000 63,243 -
Total Expenditures
$ 62,39362,393$ 60,262 61,112$
Net Change in Fund Balance
Fund Balance at Beginning of Year(59,099)
Fund Balance at End of Year $ 1,163
119
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
TRANSPORTATION DEVELOPMENT ACT 8 SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental10,068,142$ 7,637,646$ 7,209,974$ (427,672)$
Investment income (loss)18,750 18,750 (36,953) (55,703)
7,656,39610,086,892 7,173,021 (483,375)
Total Revenues
Expenditures:
Capital Improvement Projects:
Personnel- - 65,913 (65,913)
Operating8,034,02113,210,295 7,422,794 5,787,501
Total Expenditures 13,210,2958,034,021 7,488,707 5,721,588
$ (5,553,899)2,052,871$ (315,686) 5,238,213$
Net Change in Fund Balance
Fund Balance at Beginning of Year5,601,358
Fund Balance at End of Year 5,285,672$
120
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Investment income-$ -$ 461$ 461$
Fines and forfeitures400,000 400,000 578,264 178,264
400,000400,000 578,725 178,725
Total Revenues
Other financing sources (uses):
Transfer out(400,000) (400,000) (578,725) (178,725)
$ --$ - -$
Net Change in Fund Balance
Fund Balance at Beginning of Year-
Fund Balance at End of Year $ -
121
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental$ 1,732,178$ 1,633,169$613,838$ (1,019,331)
Expenditures:
Operating:
Personnel198,247133,72599,77233,953
Operating575,841635,773514,066121,707
Capital Improvement Projects:
Operating949,522867,300-867,300
Total Expenditures1,723,6101,636,798613,8381,022,960
Net Change in Fund Balance$8,568$ (3,629)-$3,629
Fund Balance at Beginning of Year-
Fund Balance at End of Year $-
122
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental275,700$ 275,700$ 277,988$ 2,288$
Investment income3,125 3,125 (515) (3,640)
278,825278,825 277,473 (1,352)
Total Revenues
Expenditures:
Operating:
Operating18,916 18,916 19,510 (594)
Capital Improvement Projects:
Personnel- - 442 (442)
Operating334,860 495,814 41,121 454,693
514,730353,776 61,073 453,657
Total Expenditures
Net Change in Fund Balance$ (235,905)(74,951)$ 216,400 452,305$
Fund Balance at Beginning of Year589,207
Fund Balance at End of Year 805,607$
123
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Special assessments82,359$ $ 82,359$ 3,319,631$ 3,237,272
Investment income1,875 1,875 4,244 2,369
Charges for services3,339,350 3,339,350-(3,339,350)
Other revenue297,738 297,738211,348(86,390)
Total Revenues3,721,322 3,721,3223,535,223(186,099)
Expenditures:
Operating:
Personnel1,359,124 1,294,5991,334,197(39,598)
Operating2,079,628 2,698,6001,988,947709,653
Capital Improvement Projects:
Personnel- -4,489(4,489)
Operating2,560,000 2,560,000 1 01,7062,458,294
Total Expenditures5,998,752 6,553,1993,429,3393,123,860
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(2,277,430)(2,831,877) 1 05,8842,937,761
Other financing sources (uses):
Transfers in
3,690 3,690 3,690 -
Transfer out(28,345) (88,256)(59,911) 28,345
(24,655) (84,566)(56,221) 28,345
Total Other Financing Sources (Uses)
$ (2,302,085)$ (2,916,443) 49,663$ 2,966,106
Net Change in Fund Balance
Fund Balance at Beginning of Year5,609,697
Fund Balance at End of Year $ 5,659,360
124
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental1,267,562$ 1,316,905$ 76,203$ (1,240,702)$
Expenditures:
Capital Improvement Projects:
Operating1,267,562 1,267,562 - 1,267,562
$ 49,343-$ 76,203 26,860$
Net Change in Fund Balance
Fund Balance at Beginning of Year(49,342)
Fund Balance at End of Year 26,861$
125
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental-$ $ 1,526$ 1,525$ (1)
Expenditures:
Operating:
Operating- 1,526 1,525 1
$ -$ - -$ -
Net Change in Fund Balance
Fund Balance at Beginning of Year -
Fund Balance at End of Year $ -
126
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental3,328,213$ 338,213$ 331,017$ (7,196)$
Investment income- - (164) (164)
Total Revenues 338,2133,328,213 330,853 (7,360)
Expenditures:
Operating:
Operating- 406,050 427,773 (21,723)
$ (67,837)3,328,213$ (96,920) (29,083)$
Net Change in Fund Balance
Fund Balance at Beginning of Year214,091
Fund Balance at End of Year 117,171$
127
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental-$ 2,500$ 7,700$ 5,200$
Investment income- - 15 15
$ 2,500-$ 7,715 5,215$
Net Change in Fund Balance
Fund Balance at Beginning of Year50,048
Fund Balance at End of Year 57,763$
128
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Investment income-$ -$ (613)$ (613)$
Developer fees275,000 275,000 381,026 106,026
Total Revenues 275,000275,000 380,413 105,413
Expenditures:
Operating:
Operating- 40,999 920 40,079
$ 234,001275,000$ 379,493 145,492$
Net Change in Fund Balance
Fund Balance at Beginning of Year1,244,736
Fund Balance at End of Year 1,624,229$
129
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Taxes480,000$ $ 450,000$ 450,688$ 688
Investment income 16,44016,440 16,794 354
496,440466,440467,482 1,042
Total Revenues
Expenditures:
Operating:
Operating204,500245,164212,428 32,736
Capital outlay101,0001,526,000 1,502,802 23,198
Total Expenditures305,5001,771,164 1,715,230 55,934
$ 190,940$ (1,304,724)(1,247,748)$ 56,976
Net Change in Fund Balance
Fund Balance at Beginning of Year 1,811,286
Fund Balance at End of Year $ 563,538
130
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental5,485,789$ 7,804,160$ 5,250,847$ (2,553,313)$
Investment income9,375 9,375 (246) (9,621)
7,813,5355,495,164 5,250,601 (2,562,934)
Total Revenues
Expenditures:
Capital Improvement Projects:
Personnel- - 789 (789)
Operating2,511,772 3,269,508 403,940 2,865,568
Total Expenditures 3,269,5082,511,772 404,729 2,864,779
Excess (Deficiency) of Revenues
Over (Under) Expenditures
4,544,0272,983,392 4,845,872 301,845
Other financing sources (uses):
Transfer out(3,013,120) (4,070,969) (2,567,131) 1,503,838
Net Change in Fund Balance$ 473,058(29,728)$ 2,278,741 1,805,683$
Fund Balance at Beginning of Year200,297
Fund Balance at End of Year 2,479,038$
131
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental2,718,668$ 16,661,356$ 7,608,727$ (9,052,629)$
Expenditures:
Capital Improvement Projects:
Personnel- - 236,732 (236,732)
Operating2,718,668 16,410,675 9,756,468 6,654,207
Total Expenditures 16,410,6752,718,668 9,993,200 6,417,475
Excess (Deficiency) of Revenues
Over (Under) Expenditures
250,681- (2,384,473) (2,635,154)
$ 250,681-$ (2,384,473) (2,635,154)$
Net Change in Fund Balance
Fund Balance at Beginning of Year(141,416)
Fund Balance at End of Year (2,525,889)$
132
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental25,000$ 25,000$ 2,544,996$ 2,519,996$
Investment income2,534,683 2,541,020 7,879 (2,533,141)
2,566,0202,559,683 2,552,875 (13,145)
Total Revenues
Expenditures:
Capital Improvement Projects:
Personnel (8,766)8,766
Operating808,568 4,146,486 2,945,372 1,201,114
Total Expenditures 4,146,486808,568 2,954,138 1,192,348
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(1,580,466)1,751,115 (401,263) 1,179,203
Other financing sources (uses):
Transfer out- - - -
$ (1,580,466)1,751,115$ (401,263) 1,179,203$
Net Change in Fund Balance
Fund Balance at Beginning of Year6,780,724
Fund Balance at End of Year 6,379,461$
133
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Charges for services710,814$ $ 710,814$ 649,168$ (61,646)
Investment income6,250 6,250 477 (5,773)
Total Revenues717,064 717,064 6 49,645 (67,419)
Expenditures:
Operating:
Personnel 29,615 29,943 28,167 1,776
Operating497,324 497,324 4 32,135 65,189
526,939 527,267 4 60,302 66,965
Total Expenditures
Net Change in Fund Balance$ 190,125$ 189,797189,343$ (454)
Fund Balance at Beginning of Year977,972
Fund Balance at End of Year $ 1,167,315
134
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Special assessments2,563,525$ 2,563,525$ 2,556,110$ (7,415)$
Charges for services86,655 86,655 135,587 48,932
Investment income31,250 31,250 11,314 (19,936)
Total Revenues 2,681,4302,681,430 2,703,011 21,581
Expenditures:
Operating:
Personnel465,590 402,861 326,155 76,706
Operating165,280 165,280 118,104 47,176
Capital outlay14,812 1,913,026 120,018 1,793,008
Capital Improvement Projects:
Capita outlay- 2,000,000 2,000,000 -
Total Expenditures 4,481,167645,682 2,564,277 1,916,890
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,035,748 138,734(1,799,737) 1,938,471
Other financing sources (uses):
Transfer out(709,947) (913,165) (908,424) 4,741
Total Other Financing Sources (Uses) (913,165)(709,947) (908,424) 4,741
Net Change in Fund Balance$ (2,712,902)1,325,801$ (769,690) 1,943,212$
Fund Balance at Beginning of Year4,445,896
Fund Balance at End of Year 3,676,206$
135
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Intergovernmental61,500$ 61,500$ 81,532$ 20,032$
Other revenue49,400 484,204 18,689 (465,515)
Total Revenues 545,704110,900 100,221 (445,483)
Expenditures:
Operating:
Operating161,500 213,469 201,706 11,763
Capital Improvement Projects:
Operating- 484,204 76,550 407,654
Total Expenditures 697,673161,500 278,256 419,417
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(50,600) (151,969) (178,035) (26,066)
Net Change in Fund Balance$ (151,969)(50,600)$ (178,035) (26,066)$
Fund Balance at Beginning of Year310,132
Fund Balance at End of Year 132,097$
136
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Investment income21,875$ 21,875$ (16,552)$ (38,427)$
Developer fees1,713,824 3,025,030 3,547,823 522,793
3,046,9051,735,699 3,531,271 484,366
Total Revenues
Expenditures:
Capital Improvement Projects:
Personnel- - 249 (249)
Operating23,218 953,630 173,272 780,358
953,63023,218 173,521 780,109
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
2,093,2751,712,481 3,357,750 1,264,475
Net Change in Fund Balance$ 2,093,2751,712,481$ 3,357,750 1,264,475$
Fund Balance at Beginning of Year7,873,956
Fund Balance at End of Year 11,231,706$
137
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
$$ (144)$ (144)
Investment income-$ -
Other revenue-126,94944,468(82,481)
-126,94944,324(82,625)
Total Revenues
Expenditures:
Operating:
Operating- -1,943(1,943)
$ 126,949-$ 42,381$ (84,568)
Net Change in Fund Balance
Fund Balance at Beginning of Year608,188
Fund Balance at End of Year $ 650,569
138
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Revenues:
Charges for services11,300$ $ 11,300$ 9,150$ (2,150)
Investment income - - 35 3 5
Other revenue - - 2,500 2,500
11,300 11,300 11,685 385
Total Revenues
Expenditures:
Operating:
Operating17,556 17,556 5,070 12,486
$ (6,256)$ (6,256) 6,615$ 12,871
Net Change in Fund Balance
Fund Balance at Beginning of Year41,818
Fund Balance at End of Year $ 48,433
139
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 30, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Expenditures:
Capital Improvement Projects:
Personnel-$ $-$15,339$ (15,339)
Operating794,825 2,356,3111,883,830472,481
794,825 2,356,3111,899,169457,142
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(794,825)(2,356,311)(1,899,169)457,142
Other financing sources (uses):
Transfers in
944,075 1,051,2441,051,244 -
Transfer out-(75,000)(75,000) -
944,075 976,244976,244 -
Total Other Financing Sources (Uses)
$ 149,250$ (1,380,067) (922,925)$ 457,142
Net Change in Fund Balance
Fund Balance at Beginning of Year2,002,584
Fund Balance at End of Year $ 1,079,659
140
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Other financing sources (uses):
Transfers in
$ 705,206$ 705,206$ 705,206$ -
Transfer out(705,206)(705,206) (705,206) -
$ -$ - -$ -
Net Change in Fund Balance
Fund Balance at Beginning of Year10
Fund Balance at End of Year $ 10
141
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, 2018
Variance with
Budgeted AmountsFinal Budget
OriginalFinalActualPositive/(Negative)
Expenditures:
Debt Service:
Debt Services2,890,283$ $ 2,890,283$ 3,103,945$ (213,662)
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(2,890,283)(2,890,283) (3,103,945) (213,662)
Other financing sources (uses):
Bonds issued
- 15,848,271- 15,848,271
Payment to refunding bond escrow agent
- -(35,099) (35,099)
Transfers in
2,890,283 3 ,755,4843,755,484 -
Transfers out - (15,593,241)-(15,593,241)
2,890,283 3 ,755,4843,975,415 219,931
Total Other Financing Sources (Uses)
871,470$ 6,269
Net Change in Fund Balance$ 865,201-$
Fund Balance at Beginning of Year 10,142
Fund Balance at End of Year $ 881,612
142
CITY OF SANTA CLARITA, CALIFORNIA
INTERNAL SERVICE FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2018
The Internal Service Funds are used to account for goods or services provided by a central service
department to other City departments.
Self-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.
143
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2018
SelfComputerVehicle
InsuranceReplacementReplacementTotals
Assets:
Current assets:
Cash and investments$ 4,320,035$ 2,678,688$ 3,954,507$ 10,953,230
Receivables:
Interest 22,190 11,431 16,875 50,496
Prepaid costs-8,658-8,658
Total Current Assets4,342,2252,698,7773,971,382 11,012,384
Noncurrent assets:
Capital assets:
Equipment, net of accumulated depreciation-117,0511,247,6921,364,743
Total Assets4,342,2252,815,8285,219,074 12,377,127
Deferred Outflows of Resources:
Deferred outflows related to pensions 74,645-- 74,645
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 42,248 20,472-62,720
Compensated absences 8,842--8,842
Claims and judgments1,690,947- 1,690,947-
Total Current Liabilities1,742,037 20,472-1,762,509
Noncurrent liabilities:
Net OPEB liability 30,927-- 30,927
Net pension liability 171,540-- 171,540
Claims and judgments1,084,282- 1,084,282-
Total Non-current Liabilities1,286,749- 1,286,749-
3,028,786 20,472-3,049,258
Total Liabilities
Deferred Inflows of Resources:
Deferred inflows related to OPEB 4,308-- 4,308
Deferred inflows related to pensions 8,478--
8,478
12,786-- 12,786
Total Deferred Inflows of Resources
Net position:
Net investment in capital assets-117,0511,247,6921,364,743
Unrestricted1,375,2982,678,3053,971,3828,024,985
Total Net Position$ 1,375,298$ 2,795,356$ 5,219,074$ 9,389,728
144
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
SelfComputerVehicle
InsuranceReplacementReplacementTotals
Operating Revenues:
Charges for services$ 2,228,994$ 804,314$ 258,768$ 3,292,076
Other revenues1,000,000 - - 1,000,000
Total Operating Revenues3,228,994 804,314258,7684,292,076
Operating Expenses:
Administration and personnel services166,052 - - 166,052
Services and supplies1,629,418 404,815 2,833 2,037,066
Depreciation expense-44,169 215,257 259,426
1,795,470 448,984218,0902,462,544
Total Operating Expenses
1,433,524 355,330 40,678 1,829,532
Operating Income (Loss)
Nonoperating Revenues:
Investment income (loss) (12,857) 9 84 5,133 ( 6,740)
Gain (loss) on disposal of capital assets - - 10,935 10,935
(12,857) 9 84 16,068 4,195
Total Net Nonoperating Revenues
1,420,667 356,314 56,746 1,833,727
Income before transfers
Transfers
Transfers in72,198 - - 72,198
Transfers out (1,242,917) - - (1,242,917)
Total Transfers (1,170,719) - - (1,170,719)
249,948 356,314 56,746 663,008
Change in net position
Net Position
Net Position at Beginning of the Year, As Restated1,125,350 2,439,042 5,162,3288,726,720
Net Position at End of the Year$ 1,375,298$ 2,795,356$5,219,074$ 9,389,728
145
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
SelfComputerVehicle
InsuranceReplacementReplacementTotals
Cash flows from operating activities:
Cash received from customers and users$ 3,228,994$ 804,314$ 261,143$ 4,294,451
Cash paid to suppliers for goods and services(2,019,615) (408,880) ( 2,833)(2,431,328)
Cash paid to employees for services(166,593) - - (166,593)
1,042,786395,434 258,310 1,696,530
Net Cash Provided by Operating Activities
Cash flows from non-capital financing activities:
Cash transfers out(1,242,917) - -(1,242,917)
Cash transfers in72,198 - - 72,198
Net Cash Provided (Used in)
Non-capital Financing Activities(1,170,719) - -(1,170,719)
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets-(7,594) (372,858) (380,452)
Proceeds from sales of capital assets-- 10,935 10,935
Net Cash (Used in) Capital
-(7,594) (361,923) (369,517)
and Related Financing Activities
Cash flows from investing activities:
Interest received (14,248)(634) 5,612 ( 9,270)
Net Cash Provided by Investing Activities (14,248)(634) 5,612 ( 9,270)
Net Increase (Decrease) in Cash and
(142,181) 387,206 (98,001) 147,024
Cash Equivalents
Cash and Cash Equivalents, Beginning of Fiscal Year 4,462,216 2,291,482 4,052,50810,806,206
Cash and Cash Equivalents, End of Fiscal Year$ 4,320,035$ 2,678,688$ 3,954,50710,953,230
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$ 1,433,524$ 355,330$ 40,678$ 1,829,532
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation-44,169215,257 259,426
Change in deferred amounts related to pensions (31,431) - - (31,431)
Change in deferred amounts related to OPEB 4,308 - - 4,308
Change in net OPEB liability(2,314) - - ( 2,314)
Change in net pension liability26,422 - - 26,422
Decrease in accounts receivable- - 2,375 2,375
Decrease in prepaid expense-12,752-12,752
Decrease in accounts payable25,330 (16,817)- 8,513
Increase in claims and judgments(415,527) - - (415,527)
Increase in compensated absences 2,474 - - 2,474
(390,738) 40,104 217,632 (133,002)
Total Adjustments
$ 1,042,786$ 395,434$ 258,310$ 1,696,530
Net Cash Provided by Operating Activities
146
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CITY OF SANTA CLARITA, CALIFORNIA
AGENCY FUNDS
AS OF AND FOR THE YEAR ENDED JUNE 30, 2018
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.
147
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
AGENCY FUNDS
AS OF JUNE 30, 2018
Community
AssessmentAssessmentFacilities
DistrictDistrictDistrict
No. 92-2No. 99-1No. 2002-1
Assets:
Cash and investments$ 171,601$ 114,643$ 898,397
Receivables:
Interest7324893,836
Taxes391925-
Restricted assets:
Cash and investments with fiscal agents56,262 6 0,2881,647,558
Capital assets:
Land---
Building, net of accumulated depreciation---
Total Assets$ 228,986$176,345$ 2,549,791
Liabilities:
Accounts payable$ -$-$-
Dueto external parties228,986176,3452,549,791
Total Liabilities$ 228,986$176,345$ 2,549,791
148
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
AGENCY FUNDS
AS OF JUNE 30, 2018
Santa Clarita
Watershed andSanta Clarita
RecreationPublic
ConservancyTelevision
AuthorityAuthorityTotals
$ 3,935$ 1,188,64468$
- - 5 ,057
- - 1 ,316
- - 1 ,764,108
9,937,976-9,937,976
75
,252-75,252
$ 10,017,163$ 12,972,35368$
$ 500$ -$ 500
10,016,663 6 812,971,853
$ 10,017,163$ 12,972,35368$
149
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
BalanceBalance
July 1, 2017AdditionsDeletionsJune 30, 2018
Assessment District No. 92-2
Assets
Cash and investments165,615$ 5,986$ -$ 171,601$
Receivables:
Interest710 22 - 732
Taxes418 - 27 391
Restricted assets:
Cash and investments with fiscal agents55,933 329 - 56,262
$ 6,337222,676$ 27$ 228,986$
Total Assets
Liabilities
Due to external parties222,676$ 6,337$ 27$ 228,986$
$ 6,337222,676$ 27$ 228,986$
Total Liabilities
Assessment District No. 99-1
Assets
Cash and investments90,214$ 24,429$ -$ 114,643$
Receivables:
Interest386 103 - 489
Taxes3,291 - 2,366 925
Restricted assets:
Cash and investments with fiscal agents59,788 500 - 60,288
$ 25,032153,679$ 2,366$ 176,345$
Total Assets
Liabilities
Accounts payable124$ -$ 124$ -$
Due to external parties153,555 22,790 - 176,345
$ 22,790153,679$ 124$ 176,345$
Total Liabilities
(Continued)
150
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES (CONTINUED)
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
BalanceBalance
July 1, 2017AdditionsDeletionsJune 30, 2018
Community Facilities District No. 2002-1
Assets
Cash and investments869,775$ $ 28,622$ -$ 898,397
Receivables:
Interest3,718 118-3,836
Restricted assets:
Cash and investments with fiscal agents1,645,255 2,303-1,647,558
$ 2,518,748$ 31,043$ -$ 2,549,791
Total Assets
Liabilities
Due to external parties$ 2,518,748$ 31,043$ -$ 2,549,791
$ 2,549,791
Total Liabilities$ 2,518,748$ 31,043$ -
Santa Clarita Watershed Recreation and Conservancy Authority
Assets
Cash and investments3,933$ $ 2$ -$ 3,935
Land9,937,976 - -9,937,976
Building, net of accumulated depreciation79,014-3,762 75,252
$ 10,020,923$ 2$ 10,017,1633,762$
Total Assets
Liabilities
Accounts payable$ -$ 500$ -$ 500
Due to external parties10,020,923-4,26010,016,663
Total Liabilities$ 10,020,923$ 500$ 10,017,1634,260$
(Continued)
151
CITY OF SANTA CLARITA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES (CONTINUED)
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
BalanceBalance
July 1, 2017AdditionsDeletionsJune 30, 2018
Santa Clarita Public Television Authority
Assets
Cash and investments44,485$ -$ 44,417$ 68$
Total Assets$ -44,485$ 44,417$ 68$
Liabilities
Due to external parties44,485$ -$ 44,417$ 68$
$ -44,485$ 44,417$ 68$
Total Liabilities
Total Agency Funds
Assets
Cash and investments1,174,022$ 59,039$ 44,417$ 1,188,644$
Receivables:
Interest4,814 243 - 5,057
Taxes3,709 - 2,393 1,316
Restricted assets:
Cash and investments with fiscal agents1,760,976 3,132 - 1,764,108
Capital assets:
Land9,937,976 - - 9,937,976
Building, net of accumulated depreciation79,014 - 3,762 75,252
$ 62,41412,960,511$ 50,572$ 12,972,353$
Total Assets
Liabilities
Accounts payable124$ 500$ 124$ 500$
Due to external parties12,960,387 60,170 48,704 12,971,853
$ 60,67012,960,511$ 48,828$ 12,972,353$
Total Liabilities
152
STATISTICAL SECTION
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CITY OF SANTA CLARITA, CALIFORNIA
STATISTICAL SECTION
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 PAGE
Financial Trends
These tables contain trend information that may assist the reader in the City’s current
financial performance by placing it in historical perspective. 154-163
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. 164-178
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. 179-185
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. 186-187
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. 188-190
153
City of Santa Clarita
(1)
Net Position by Component
Last Ten Fiscal Years Ended June 30, 2018
(accrual basis of accounting)
FISCAL YEAR
17-1816-1715-1614-15
Governmental Activities
Net investment in capital assets$ 895,056,642$ 867,144,998$ 810,324,041$ 818,817,043
Restricted for:
Capital projects - - - -
Debt service- - - -
Specific projects and programs 113,286,626 87,272,723 70,773,322 73,541,304
Total restricted 113,286,626 87,272,723 70,773,322 73,541,304
Unrestricted 85,155,060 105,514,664 115,356,272 79,211,600
Total governmental activities
net position$1,093,498,328$1,059,932,385$ 996,453,635$ 971,569,947
Business-Type Activities
Net investment in capital assets79,199,471$ 79,589,102$ 76,687,260 $ 78,495,871 $
Unrestricted(888,318) (1,202,362) 3,101,763 2,766,972
Total business-type activities
net position$ 78,311,153$ 78,386,740$ 79,789,023$ 81,262,843
Primary Government
Net investment in capital assets974,256,113 $ 946,734,100 $ 887,011,301 $ 897,312,914 $
Restricted113,286,626 87,272,723 70,773,322 73,541,304
Unrestricted84,266,742 104,312,302 118,458,035 81,978,572
Total primary government
net position1,171,809,481 $$1,138,319,125$1,076,242,658$1,052,832,790
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
154
FISCAL YEAR
13-1412-1311-1210-1109-1008-09
$ 799,926,613$ 738,271,282$ 743,281,558$ 717,613,095$ 657,644,168$ 629,621,720
-14,292,447 3,275,312 3,452,815 4,769,573 4,769,573
- -- - - -
71,643,713 54,229,493 46,915,965 30,201,655 85,895,468 92,644,739
71,643,713 68,521,940 50,191,277 33,654,470 90,665,041 97,414,312
52,551,03365,706,42479,141,21167,397,68863,218,25598,512,704
$ 924,121,359$ 872,499,646$ 872,614,046$ 818,665,253$ 811,527,464$ 825,548,736
$ 76,561,407 83,296,545$ 73,778,640 $ 75,416,868 $ 67,911,725 $ 66,478,547 $
3,835,316 2,250,491 3,099,419 5 03,446 (176,196) 3,603,396
$ 85,547,036$ 80,396,723$ 76,878,059$ 75,920,314$ 67,735,529$ 70,081,943
$ 814,832,689 883,223,158$ 817,060,198 $ 793,029,963 $ 725,555,893 $ 696,100,267 $
68,521,940 71,643,713 50,191,277 33,654,470 90,665,041 97,414,312
69,541,740 54,801,524 82,240,630 67,901,134 63,042,059 102,116,100
$ 1,009,668,395$ 952,896,369$ 949,492,105$ 894,585,567$ 879,262,993$ 895,630,679
155
City of Santa Clarita
(1)
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2018
(accrual basis of accounting)
FISCAL YEAR
17-1816-1715-1614-15
Expenses
Governmental Activities
General government$ 53,928,438$ 44,390,099$ 39,155,006$ 46,224,813
Public safety 27,232,724 25,231,712 23,778,931 22,235,368
Recreation and community service 23,472,469 23,563,825 38,223,035 36,103,144
Public Works 14,771,925 16,224,154 15,594,958 22,619,337
Community development 6,957,438 7,057,301 10,505,906 5,720,237
Neighborhood Services 1,082,836 1,815,637 - -
Unallocated infrastructure depreciation 19,259,333 18,833,113 18,342,933 18,072,657
Interest on long-term debt 1,638,960 1,378,888 2,194,181 1,827,094
Total governmental activities expenses 148,344,123 138,494,729 147,794,950 152,802,650
Business-Type Activities
Transit 28,309,870 29,858,499 28,127,407 28,062,668
Total business-type activities expenses 28,309,870 29,858,499 28,127,407 28,062,668
Total primary government expenses$176,653,993$168,353,228$175,922,357$180,865,318
Program Revenues
Governmental Activities
Charges for services:
General government10,007,154 $ 6,740,507 $ 22,914,059 $ 26,783,616 $
Public safety1,429,900 1,231,974 1,162,551 1,605,059
Public works15,792,197 11,549,806 16,407,616 13,056,586
Recreation and community service8,306,076 6,191,011 8,142,336 4,525,662
Community development1,901,897 1,906,079 1,843,296 1,774,482
Neighborhood Services27,090,508 25,044,704 - -
Operating grants and contributions 9,259,079 5,977,971 7,687,397 12,561,608
Capital grants and contributions 31,807,581 55,220,052 23,629,474 30,107,231
Total governmental activities program revenues105,594,392 113,862,104 81,786,729 90,414,244
Business-Type Activities
Charges for services:
Transit 6,987,488 7,231,136 7,546,433 6,779,579
Operating grants and contributions 10,226,946 8,459,236 9,153,499 8,228,348
Capital grants and contributions 3,102,269 9,138,643 3,504,305 1,423,440
Total business-type activities program revenues20,316,703 24,829,015 20,204,237 16,431,367
Total primary government revenues$125,911,095$138,691,119$101,990,966$106,845,611
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
156
FISCAL YEAR
13-1412-1311-1210-1109-1008-09
$ 41,807,284$ 35,921,943$ 33,664,470$ 47,048,462$ 32,116,335$ 30,094,380
22,187,434 19,940,098 27,391,075 21,280,904 17,912,704 17,489,870
26,183,862 28,651,261 30,623,718 25,799,166 26,758,527 48,514,645
22,550,301 21,809,820 19,282,538 11,281,552 27,835,763 32,747,618
6,193,101 7,214,293 5,896,640 11,547,650 13,831,341 9,761,681
- - - - - -
17,561,539 15,163,864 16,844,238 16,392,901 15,545,626 14,405,047
1,872,832 1,992,574 3,391,058 4,650,566 5,476,918 5,786,174
138,356,353 130,693,853 137,093,737 138,001,201 139,477,214 158,799,415
26,819,161 25,653,753 24,930,635 24,127,043 23,348,708 22,299,379
26,819,161 25,653,753 24,930,635 24,127,043 23,348,708 22,299,379
$ 165,175,514$ 156,347,606$ 162,024,372$ 162,128,244$ 162,825,922$ 181,098,794
$ 24,323,027 31,970,148$ 13,719,117 $ 398,181 $ 396,651 $ 621,624 $
2,284,334 1,847,403 2,079,109 2,305,608 2,194,038 1,898,022
9,943,014 12,463,046 7,209,724 4,929,602 3,162,052 260,524
4,390,686 4,371,888 4,156,386 4,220,977 3,956,933 3,849,699
1,961,243 1,611,184 5,152,484 12,059,509 15,937,913 35,138,334
- - - - - -
19,421,199 9,061,950 16,032,433 14,090,686 16,224,269 9,931,109
22,530,841 33,585,797 28,616,388 31,325,725 15,249,634 38,785,576
94,584,566 85,181,194 76,965,641 69,330,288 57,121,490 90,484,888
7,587,497 6,863,086 6,616,778 6,573,879 3,181,614 3,299,263
8,984,127 8,579,209 7,385,264 6,913,534 10,260,579 13,653,177
10,804,747 8,513,238 5,041,992 13,043,418- -
27,376,371 23,955,533 19,044,034 26,530,831 13,442,193 16,952,440
$ 121,960,937$ 109,136,727$ 96,009,675$ 95,861,119$ 70,563,683$ 107,437,328
(Continued)
157
City of Santa Clarita
(1)
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2018
(accrual basis of accounting)
FISCAL YEAR
17-1816-1715-1614-15
Net Revenues (expenses):
Governmental activities(42,749,731)(24,060,399)(66,008,221)$(62,388,406)
Business-type activities(7,993,167)(5,029,484) (7,923,170) (11,631,301)
Total net revenues (expenses)(50,742,898)(29,089,883)(73,931,391)(74,019,707)
$
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes37,252,523$ 36,147,727$ 37,807,385$ 34,355,412 $
Property taxes42,284,74939,924,74940,072,59738,556,890
Franchise taxes8,523,7918,208,3478,392,7898,512,818
Real property transfer taxes1,320,0181,275,3631,383,4731,169,780
Transient occupancy taxes3,489,2813,639,2643,813,4373,124,904
Unrestricted revenue in lieu of motor vehicle taxes162,103144,665129,05385,703
Unrestricted revenue in lieu of sales taxes - - - -
Grants and contributions not restricted
to specific programs - - - -
Unrestricted investment earnings591,1771,052,2544,142,9592,240,594
Miscellaneous revenue2,661,916737,5131,080,771678,937
Gain on sale of capital asset10,93511,711459,70927,410
Transfers(5,924,278)(3,602,443)(6,390,264)(7,329,516)
Reversal of Allowance for Notes to RDA Successor Age - - - 12,633,832
Capital Contributions - - - 15,780,230
Total governmental activities90,372,21587,539,15090,891,909109,836,994
Business-type activities
Unrestricted investment earnings (1,242) (28,735) 59,08617,592
Gain on sale of capital asset 20,238 53,223 - -
Miscellaneous revenue - - - -
Transfers5,924,2783,602,4436,390,2647,329,516
Total business-type activities5,943,2743,626,9316,449,3507,347,108
Total primary government$ 96,315,489$ 91,166,081$ 97,341,259$117,184,102
Extraordinary Item
Gain from dissolution of former redevelopment
agency of the City of Santa Clarita - -$-
Change in Net Position
Governmental activities$ 47,622,484$63,478,751$ 24,883,688$ 47,448,588
Business-type activities(2,049,893)(1,402,553)(1,473,820)(4,284,193)
Total primary government$ 45,572,591$ 62,076,198$ 23,409,868$ 43,164,395
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
158
FISCAL YEAR
13-1412-1311-1210-1109-1008-09
$ (43,771,787)$ (68,670,913)$ (60,128,096)$ (68,670,913)$ (82,355,724)$ (68,314,527)
557,210 2,403,788 (5,886,601) 2,403,788 (9,906,515) (5,346,939)
$ (43,214,577)$ (66,267,125)$ (66,014,697)$ (66,267,125)$ (92,262,239)$ (73,661,466)
$ 32,057,358 33,480,522$ 28,828,139 $ 27,701,757 $ 24,511,238 $ 27,751,506 $
32,341,369 35,652,080 34,818,426 24,996,219 25,126,278 26,820,068
7,141,953 7,796,070 6,920,244 6,697,241 6,407,923 6,704,074
947,470 706,180 590,474 3,082,456 4,564,687 4,816,638
2,781,527 2,556,774 2,380,547 2,106,521 2,050,857 2,260,708
8 6,531 9 1,062 - - - -
- - - 3,316,058 3,221,498 3,083,353
- - 87,883 812,475 896,708 1,015,413
2,090,322( 82,870) 1,509,201 3,756,112 4,871,133 6,020,940
781,986 310,676 5,372,890 9,148,163 4,161,677 3,193,421
18,174 - - - - -
(5,692,032) (5,187,224) (6,844,199) (5,808,300) (7,477,547) (8,006,128)
77,942,650 69,935,278 73,663,605 75,808,702 68,334,452 73,659,993
4,791 29,660 147 ( 27,303) 82,554 -
- - -- --
- - - - - 938,901
5,692,032 5,187,224 6,844,199 5,808,300 7,477,547 8,006,128
5,696,823 5,216,884 6,844,346 5,780,997 7,560,101 8,945,029
$ 83,639,473$ 75,152,162$ 80,507,951$ 81,589,699$ 75,894,553$ 82,605,022
$-$- 40,413,284 $ $-$-$-
$ 34,170,863$ 1,264,365$53,948,793$ 7,137,789$ (14,021,272)$ 5,345,466
6,254,033 7,620,672 957,745 8,184,785 (2,346,414) 3,598,090
$ 40,424,896$ 8,885,037$ 54,906,538$ 15,322,574$ (16,367,686)$ 8,943,556
159
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2018
(modified accrual basis of accounting)
FISCAL YEAR
17-1816-1715-1614-15
General Fund
Reserved$-$-$-$-
Unreserved----
Nonspendable12,390,88515,742,94511,108,25211,024,338
Restricted----
Committed----
Assigned88,674,76179,367,08479,367,08455,336,807
Unassigned47,116,23153,905,23750,669,58050,141,486
Total general fund$ 149,015,266 148,181,877$ 141,144,916 $ 116,502,631 $
All Other Governmental Funds
Reserved$-$-$-$-
Unreserved:
Special revenue funds----
Debt service fund----
Capital projects fund----
Nonspendable29,099976,8411,134,1031,455,067
Restricted113,286,62686,664,53686,240,24385,763,293
Committed15,00814,00014,00014,000
Assigned1,117,1652,151,3601,881,7281,843,822
Unassigned(6,809,748)(5,897,790)(6,975,198)(8,633,303)
Total all other governmental funds107,638,150 $ 83,908,947 $$82,294,876$80,442,879
FUND BALANCES
Fiscal Year Ended June 30, 2018
0
AllOther
Governmental
General Fund
Funds
58%
42%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
160
FISCAL YEAR
13-1412-1311-1210-1109-1008-09
$ -$ -$ -$ 19,546,015 -$$32,617,139
- - - -58,211,508 41,674,470
11,519,14311,910,05918,902,35023,845,861- -
- - - - - -
- - 66,257 12,356,339- -
51,718,09647,106,536309,078 572,781 - -
45,654,64035,320,70650,664,33846,915,238- -
$ 94,337,301 108,891,879$$69,942,023$83,690,219$77,757,523$74,291,609
$ -$ -$ -$ 51,195,454 -$$70,667,494
- - - -2,109,198 (7,048,095)
- - - -(24,048,962) (17,004,471)
- - - -33,725,531 34,502,270
606,996 670,612 28,885,98328,813,152- -
84,268,72068,957,99946,915,96557,205,072- -
612,829 716,826 - ---
3,412,1274,466,3673,275,3123,637,410- -
(9,300,647)(10,665,597)(56,718,519)(72,692,440)- -
$79,600,025$64,146,207$22,358,741$16,963,194$62,981,221$81,117,198
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
120
107.64
100
82.29
$81.12
79.60
80
83.91
80.44
64.14
62.98
60
40
(in Millions)
22.36
20
16.96
0
08-0909-1010-1111-1212-1313-1414-1515-1616-1717-18
Fiscal Year
161
City of Santa Clarita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2018
(modified accrual basis of accounting)
FISCAL YEAR
17-1816-1715-1614-15
Revenues:
Taxes93,032,465 $ 89,340,115 $ 91,598,734 $ 85,789,556 $
Licenses and permits7,688,342 7,408,357 7,283,898 5,567,280
Developer fees9,888,734 4,211,890 6,272,799 10,764,554
Investment income595,650 1,030,146 3,937,618 2,026,507
Intergovernmental36,491,705 23,922,361 31,380,753 31,953,692
Fines and forfeitures1,372,687 1,117,620 973,753 1,261,752
Service charges41,793,226 36,639,646 36,828,067 37,738,754
Other revenues1,744,075 690,974 1,789,724 511,117
Total Revenues192,606,884 164,361,109 180,065,346 175,613,212
Expenditures:
Current:
General government50,728,642 41,138,676 35,969,981 43,196,168
Public safety27,217,567 25,214,091 23,777,171 22,188,641
Public works57,213,646 43,459,620 21,327,662 36,082,625
Recreation and community service21,589,318 20,446,596 37,937,050 21,007,651
Community development6,988,331 6,583,484 10,673,993 5,883,441
Neighborhood services1,162,647 1,667,058
Capital outlay 12,083,887 9,759,258 10,562,953 23,224,180
Debt service:
Principal2,138,803 2,167,429 2,852,140 1,992,479
Interest, professional services and fiscal charges1,647,842 1,237,357 4,539,815 1,850,703
Redemption of district credits - - - 5,105,402
Total Expenditures 180,770,683151,673,569 147,640,765160,531,290
Excess of Revenues Over (Under) Expenditures11,836,201 12,687,540 32,424,581 15,081,922
Other Financing Sources (Uses)
Revenue bonds issued/issuance premium 15,848,271-32,997,352 -
Proceeds of long-term debt (35,099)- (32,907,353)-
Escrow payment, costs of bonds issuance and others-
Proceeds from capital lease-
Transfers in 25,690,566 8,046,713 11,940,563 7,850,640
Transfers out(30,444,125)(11,249,832)(17,960,861)(14,478,956)
Issuance of district credits - -
Total Other Financing Sources (Uses) 11,059,613(3,203,119)(5,930,299)(6,628,316)
Extraordinary Item:
Dissolution of Santa Clarita Redevelopment Agency - - - -
Net change in fund balances 22,895,814 9,484,421 26,494,282 8,453,606
Fund balances - Beginning of Year 232,924,213 223,439,792 196,945,510 188,491,904
Fund balances - End of Year$255,820,027$232,924,213$223,439,792$196,945,510
Debt service as percentage of noncapital expenditures3.01%2.97%5.72%2.80%
Note:
(1)Beginning in FY 2011, the fund balance classification changed in accordance with GASB 54
(2)The fiscal year 2011-2012 balance was restated as a result of analyzing amounts previously reported.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
162
FISCAL YEAR
(2)(1)
13-1412-1311-1210-1109-1008-09
$ 80,285,660$ 73,972,006$ 73,625,713$ 72,474,882$ 80,714,829$ 87,659,599
5,366,972 4,246,957 4,097,709 3,675,424 4,093,250 3,697,218
2,600,997 15,828,388 7,181,986 282,776 3,053,363 15,763,070
1,911,491 1,702,006 2,739,794 3,798,498 5,485,925 10,749,728
34,355,734 27,452,216 28,375,142 19,780,700 33,881,145 28,882,884
1,661,157 2,114,166 1,674,085 1,891,500 1,936,318 1,759,371
42,156,582 36,311,324 28,145,012 23,608,272 10,812,521 8,375,771
5,943,608 332,146 6,425,792 7,685,141 7,234,923 5,077,400
174,282,201 161,959,209 152,265,233 133,197,193 147,212,274 161,965,041
36,294,205 35,433,288 50,816,449 42,213,597 27,951,510 27,250,056
22,137,338 19,894,859 25,412,420 21,230,594 17,862,129 17,439,295
24,385,865 27,968,407 20,753,607 34,210,327 20,594,575 42,937,168
20,498,108 19,824,550 19,523,584 21,853,319 20,048,430 20,126,412
6,185,263 7,252,424 5,923,872 11,575,365 10,849,942 7,095,386
36,580,589 23,837,53327,403,439 21,311,885 46,183,26841,826,511
1,837,174 1,750,538 2,338,787 2,246,218 2,611,372 2,072,341
1,885,546 2,039,144 3,743,134 4,796,695 5,411,152 5,279,549
- 14,368,419- - - -
149,804,088 152,369,162 155,915,292 159,438,000 151,512,378 164,026,718
24,478,113 9,590,047 (3,650,059) (26,240,807) (4,300,104) (2,061,677)
- - - - - -
- - - - - -
- - - - - -
- - 252,068- - -
9,757,447 9,069,495 16,538,674 50,869,852 18,953,115 12,150,426
(15,524,498) (14,256,719) (29,810,448) (64,714,376) (28,930,662) (23,281,554)
11,297,334 12,270,335- - - -
5,530,283 7,083,111 (13,019,706) (13,844,524) (9,977,547) (11,131,128)
- - 8,317,116- - -
30,008,39616,673,158(8,352,649) (40,085,331) (14,277,651) (13,192,805)
158,483,508 141,810,350 100,653,413 140,738,744 155,016,395 168,601,612
$ $ 158,483,508$ 92,300,764$ 100,653,413$ 140,738,744$ 155,408,807
188,491,904
3.26%2.95%4.40%5.96%6.84%5.54%
163
City of Santa Clarit
a
(1)
Assessed Values and Actual Values of Taxable Property
Last Ten Fiscal Years
STATE ASSESSEDLOCALLY ASSESSED
SECURED (UTILITY)SECURED
FiscalIMPROVE-PERSONALIMPROVE-PERSONALOTHER
YearLANDMENTSPROPERTYTOTALLANDMENTSPROPERTYEXEMPTIONSTOTAL
2008-09 330,866 1,515,305 - 1,846,17110,259,253,083 95,440,322 11,386,047,165 (203,174,372)21,537,566,198
2009-101,750,395 2,264,780- 4,015,175 9,416,163,697 105,296,475 11,115,441,327(323,630,904)20,313,270,595
2010-111,750,395 2,264,780- 4 ,015,175 9,160,567,699 112,335,544 11,280,024,994(330,372,395)20,222,555,842
2011-121,431,971 2,264,780- 3 ,696,751 9,097,382,703 107,089,927 11,485,773,659(372,583,638)20,317,662,651
2012-131,431,971 2,264,780 -3 ,696,751 8,882,930,332 111,202,431 11,516,988,299(400,045,608)20,111,075,454
2013-1
4 2,264,780 1,431,971 -3 ,696,751 9,989,545,816 107,166,367 13,726,755,146(412,668,046)23,410,799,283
2014-15 2,264,780 1,431,971 -3 ,696,75110,820,572,961 103,844,310 14,749,259,449(453,562,893)25,220,113,827
2015-161,431,971 2,264,780 -3 ,696,75111,358,919,366 109,544,613 15,476,133,167(471,097,603)26,473,499,543
2016-171,431,971 2,264,780 -3 ,696,75111,931,551,116 123,045,242 16,179,111,473(348,794,590)27,884,913,241
2017-182,368,193 2,208,225 -4 ,576,41812,988,746,949 136,887,194 17,460,522,327(682,936,469)29,903,220,001
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2018
PERSONAL
PROPERTY, 2.18%
LAND, 41.34%
IMPROVEMENTS,
56.47%
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 Coren & Cone, County of Los Angeles, Auditor-Controller Office, Combined Tax Rolls 2017-18
164
LOCALLY ASSESSEDTOTALS
HOME-
UNSECUREDBEFORETAXABLE%TOTA
LOWNER
IMPROVE-PERSONALOTHEROTHERASSESSEDINCR.DIRECTPROPERTY
MENTSPROPERTYEXEMPTIONSTOTALEXEMPTIONSVALUE(DECR.)RATE (2)TAX RELIEF
611,636,166 293,355,474 (33,951,806) 871,039,834 22,647,578,381 22,410,452,203 4.27%0.07268%223,396,120
600,420,921 359,543,253 (15,127,698) 944,836,476 21,600,880,848 21,262,122,246 -1.08%0.07432%224,731,598
346,874,191553,829,644(13,331,377) 887,372,458 21,457,647,24721,113,942,935-0.70%0.07392%223,277,279
314,286,482548,430,090(15,137,342) 847,579,230 21,556,659,61221,168,938,6320.26%0.07291%220,496,294
349,415,601534,947,944(13,693,787) 870,669,758 21,399,181,35820,985,441,963-0.87%0.07183%216,163,460
329,350,845541,533,568(15,907,716) 854,976,697 24,698,048,49324,269,472,73115.65%0.09170%236,577,388
339,544,656561,740,289(13,152,888) 888,132,057 26,578,658,41626,111,942,6357.59%0.09163%232,799,644
299,024,341569,926,540(15,283,837) 853,667,044 27,817,244,77827,330,863,3384.67%0.09169%230,402,082
265,891,622547,111,240(15,791,822) 797,211,040 29,050,407,44428,685,821,0324.96%0.09259%226,031,427
280,824,664549,107,476(10,383,140) 819,549,000 31,420,665,02830,727,345,4197.12%0.09111%228,373,713
TOTAL ASSESSED VALUATION
(
Taxable Values)
Last Ten Fiscal Years
35,000
$30,727
30,000
$28,686
$27,331
$26,112
$24,269
25,000
$21,114
$21,262$21,169
$20,985
20,000
15,000
(in Millions)
10,000
5,000
-
09-1010-1111-1212-1313-1414-1515-1616-1717-18
Fiscal Year
165
City of Santa Clarita
(1)
Redevelopment Agency
(2)
Assessed Valuesand Actual Values of Taxable Property
Last Ten Fiscal Years
STATE ASSESSEDLOCALLY ASSESSED
SECURED (UTILITY)SECURED
FISCALIMPROVE-PERSONALIMPROVE-PERSONALOTHER
YEARLANDMENTSPROPERTYTOTALLANDMENTSPROPERTYEXEMPTIONSTOTAL
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
2012-13N/AN/AN/AN/AN/AN/AN/AN/AN/A
2013-14N/AN/AN/AN/AN/AN/AN/AN/AN/A
2014-15N/AN/AN/AN/AN/AN/AN/AN/AN/A
2015-16N/AN/AN/AN/AN/AN/AN/AN/AN/A
2016-17N/AN/AN/AN/AN/AN/AN/AN/AN/A
2017-18N/AN/AN/AN/AN/AN/AN/AN/AN/A
(1)The Redevelopment Agency of the City was established on November 28, 1989, pursuant to the State 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
fiscalyear 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment agencies were dissolved by
the State 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
166
LOCALLY ASSESSEDTOTALS
HOME-
UNSECUREDTOTALSTAXABLEOWNER
IMPROVE-PERSONALOTHERBEFOREASSESSEDVALUEPROPERTY
MENTSPROPERTYEXEMPTIONSTOTALBASE YEARBASE YEARVALUEGROWTHTAX RELIEF
48,437,084 39,771,667 88,131,751 (77,000) 651,935,348 385,583,831 (266,351,517) 36,870,753 2,002,848
46,361,945 34,102,838 80,380,283 (84,500) 636,114,144 369,762,627 (266,351,517) (15,821,204) 1,921,661
62,307,206 21,240,432 83,463,138 (84,500) 615,079,251 348,727,734 (266,351,517) (21,034,893) 1,871,456
46,665,422 34,353,633 80,917,055 (102,000) 613,323,930 346,972,413 (266,351,517) 1,865,922 (1,755,321)
N/AN/AN/AN/A N/AN/AN/AN/AN/A
N/AN/AN/AN/A N/AN/AN/AN/AN/A
N/AN/AN/AN/A N/AN/AN/AN/AN/A
N/AN/AN/AN/AN/AN/AN/AN/AN/A
N/AN/AN/AN/AN/AN/AN/AN/AN/A
N/AN/AN/AN/AN/AN/AN/AN/AN/A
167
City of Santa Clarita
Assessed Values—Taxable Property
Last Ten Fiscal Years
FISCAL YEAR
CATEGORY17-1816-1715-1614-1513-1412-13
Residential$23,734,569,687$21,784,467,001$20,809,579,112$ 18,138,258,224 19,755,522,402$ 14,971,655,728$
Commercial3,399,444,1043,248,599,9723,059,958,6332,952,772,2312,847,760,1762,794,405,083
Industrial1,790,582,9191,706,030,4321,799,119,7421,642,718,8661,561,091,3161,413,623,056
Irrigated2,993,5702,960,7602,936,1202,834,4662,827,3112,796,388
Dry farm-- - -- -
Recreational106,578,19399,802,827104,324,505101,870,300100,138,918104,981,278
Institutional193,500,837213,333,035162,056,819142,862,940136,824,169132,119,758
Government363,846356,714220,358216,042215,066210,850
Miscellaneous315,717309,530348,240341,4211,017,342864,299
Vacant land554,513,132449,270,431419,750,992507,997,067509,125,263565,117,297
SBE Nonunitary 4,576,4183,696,7513,696,7513,696,7513,696,7513,696,751
Possessory Int.120,357,965117,718,179115,205,002112,978,072113,541,478125,301,717
Unsecured819,549,000797,363,610853,667,044888,132,057854,976,697870,669,758
Unknown3120202020 -
TOTALS:$ 28,423,909,262 30,727,345,419$ 27,330,863,338 $ 26,111,942,635 $ 24,269,472,731 $ 20,985,441,963$
ASSESSED VALUE -TAXABLE PROPERTY
Last Ten Fiscal Years
25,000
Residential
20,000
Commercial
15,000
Industrial
10,000
Vacant land
(in Millions)
5,000
All others
-
08-0909-1010-1111-1212-1313-1414-1515-1616-1717-18
Fiscal Year
168
FISCAL YEAR
11-1210-1109-1008-09
$ 15,239,936,469 15,212,586,674$ 15,094,074,637 $ 16,493,025,013$
2,748,247,727 2,820,296,027 2,729,669,423 2,541,908,257
1,455,126,754 1,463,696,151 1,451,053,867 1,420,480,569
3,016,072 3,004,749 3,630,743 3,559,558
- - - -
106,506,146 121,791,852 121,511,353 119,459,165
125,982,002 127,363,481 125,868,861 136,418,924
206,717 205,173 206,850 201,629
847,359 841,034 843,038 -
533,608,937 308,820,538 636,182,476 664,562,300
3,696,751 4,015,175 3,573,175 1,073,171
131,534,263 136,599,828 150,671,347 158,723,783
847,579,230 887,372,458 944,836,476 871,039,834
- - - -
$ 21,113,942,935 21,168,938,632$ 21,262,122,246 $ 22,410,452,203$
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.
169
City of Santa Clarita
Assessed Values—Use Category Summary
Fiscal Year 2017-18
NET
ASSESSEDTAXABLE
CATEGORYPARCELSVALUEPERCENTEXEMPTIONSVALUEPERCENT
Residential 23,814,421,987 57,968$ 75.8%79,852,300 $ 23,734,569,687 $ 77.24%
Commercial 3,453,381,455 910 11.0%53,937,351 $ 3,399,444,104 11.06%
Industrial 1,989,909,802 718 6.3%199,326,883 $ 1,790,582,919 5.83%
Irrigated 2,993,570 6 0.0%-$ 2,993,570 0.01%
Recreational 109,550,143 36 0.3%2,971,950 $ 106,578,193 0.35%
Institutional 535,206,889 99 1.7%341,706,052 $ 193,500,837 0.63%
Government 363,846 5 0.0%-$ 363,846 0.00%
Miscellaneous 315,717 6 0.0%-$ 315,717 0.00%
Vacant land 558,627,285 3,899 1.8%4,114,153 $ 554,513,132 1.80%
SBE Nonunitary 4,576,418 (15) 0.0%-$ 4,576,418 0.01%
Possessory Int. 121,385,745 (2,220) 0.4%1,027,780 $ 120,357,965 0.39%
Unsecured 829,932,140 (4,457) 2.6%10,383,140 $ 819,549,000 2.67%
Unknown 31 24 0.0%-$ 31 0.00%
TOTALS: 31,420,665,028 56,979$100.00%693,319,609 $$30,727,345,419100.00%
ASSESSED VALUE by USE CATEGORY
NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2017-18
Fiscal Year 2017-18
All Others,
All Others,
Industrial,
Industrial,
5.87%
6.88%
5.83%
6.33%
Commercial,
11.06%
Commercial
Residential,
, 10.99%
77.24%
Residential,
75.79%
Source: HdL Coren & Cone, Los Angeles County Assessor 2017-18 Combined Tax Rolls.
170
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
CASTAIC
LOSLAKECOUNT
YCOUNTY
FiscalANGELESWATERSCHOOLSANITATIONFLOOD
YearGENERALCOUNTYAGENCYDISTRICTSDISTRICTSCONTROLTOTAL
2008-09 -1.000000 0.040000 - -1.117110
0.077110
2009-101.000000 0.060750- - -1.150565
0.089815
2010-111.000000 0.070600- - -1.157430
0.086830
2011-121.000000 0.070600- - -1.162057
0.091457
2012-131.000000 0.070600- - -1.183435
0.112835
2013-141.000000 0.070600- - -1.190930
0.120330
2014-151.000000 0.070600- - -1.189170
0.118570
2015-161.000000 0.070600- - -1.186670
0.116070
2016-171.000000 0.070600- - -1.190036
0.119436
2017-181.000000 0.070600- - -1.205948
0.135348
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2017-18
1.200000
1.000000
GENERAL
0.800000
0.600000
0.400000
SCHOOL
0.200000
CASTAIC LAKE
DISTRICTS
SANITATION
WATER AGENCY
DISTRICTS
0.000000
LA COUNTYFLOOD CONTROL
Source: HdL Coren & Cone, Los Angeles County Assessor 2017-18 Tax Rate Table
171
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 RatesRDA Incremental RateTotal Direct Rate
City ShareProp. 13
Total City
of 1%plus applicable
Roll Yearper Prop. 13Debt RatesRatesvoter-approved debt
2017-180.1227500.0000000.1227500.00000%0.09259%
Agency2017-18
Notes: General fund tax rates are
City of Santa Clarita Tax District 1 (249.01)0.05730
Castaic Lake Water Agency (302.01) 0.05780representative and based upon the direct
Children's Institutional Tuition Fund (400.21) 0.00283and overlapping rates for the largest
Consolidated Fire Protection District of LA Co. (007.30) 0.16340General Fund tax rates area (TRA) by net
County School Service Fund Newhall (581.06) 0.00801taxable value. Total Direct Rate is the
County School Service Hart William S. Hart (757.06) 0.00034weighted average of all individual direct
County School Services (400.15
) 0.00143rates applied by the government preparing
Development Center Handicapped Minor Newhall (581.07) 0.00088the statistical section information.
The percentages presentedinthe columns
Educational Augmentation Fund Impound (400.01) 0.13380
Educational Revenue Augmentation Fund (ERAF) (400.00
) 0.08260above do not sum across rows. In 1978
Greater LA Co. Vector Control (061.80) 0.00032California voters passed Proposition 13,
Santa Clarita Library (249.56) 0.02360which set the property tax at a 1.00% fixed
LA County Fire - Ffw (007.31) 0.00323amount. This 1.00% is shared by all the
LA County Flood Control Improvement District (030.10) 0.00176taxing agencies for which the subject
LA County Flood Control Maintenance (030.70) 0.00996property resides within. In addition to the
LA County General (001.05) 0.140501.00% fixed amount, property owners are
LA County Accum Cap Outlay (001.20) 0.00009charged taxes as a percentage of assessed
Newhall School District (581.01) 0.08350property values for the payment of any
Santa Clarita Community College (814.04) 0.03740voter-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:1.00000
Castaic Lake Water Agency (302.01)0.070600
Newhall Elementary School District Debt Services 1999 Ser. B (581.53) 0.020805
Newhall Elementary School District Debt Services 1999 Ser. A (581.52) 0.020805
Santa Clarita Community College Debt Services 2001 Ser. 2005 (814.54
) 0.008610
Santa Clarita Community College Debt Services 2006 Ser. 2007 (814.55
) 0.008610
Santa Clarita Community College Debt Services 2005 Refunding Bonds (814 0.008610
Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52) 0.008610
Santa Clarita Community College Debt Services 2006 Ser. 201
2 0.008610
William S. Hart Un.Hsd Debt Services (757.51)0.010138
William S. Hart Un.Hsd Debt Services 2008 Ser. B0.010138
William S. Hart Un.Hsd Debt Services 2008 Ser. C0.010138
William S. Hart Unified Debt Services 2001 Ser. B (757.52)0.010138
William S. Hart Unified Debt Services 2008 Ser. A (757.53)0.010138
Total Tax Rate 0.205950
Source: HdL Coren & Cone, Los Angeles County Assessor 2017/18 Tax Rate Table
172
City of Santa Clarita
Principal Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
FISCAL YEAR 2017-18FISCAL YEAR 2008-09
PERCENT ofPERCENT of
NumberTOTALTOTAL CITYNumberTOTALTOTAL CITY
ofASSESSEDASSESSEDofASSESSEDASSESSED
OWNER/TAXPAYERParcelsVALUEVALUEOWNER/TAXPAYERParcelsVALUEVALUE
Valencia Town Center Venture LP 17 $ 380,418,174 1.24%Valencia Town Center Venture 30 $ 283,259,367 1.26%
Bel Valencia LLC 9 162,999,991 0.53VTC Business Center 9 157,307,514 0.70
Park Sierra Properties 15 139,879,720 0.46EQR Valencia LLC 218 93,110,7450.42
WESCO IV LLC 2 123,475,402 0.40Casden Santa Clarita LLC 25 79,590,5460.36
Saugus Colony Limited 19 118,157,292 0.38C-Native Exchange I LLC Time Warn 1 78,960,993 0.35
EQR Valecnia LLC218 104,965,5640.34Walmart Real Estate Business Trust 5 75,424,767 0.34
EQR The Oaks LLC 28 102,832,717 0.33RREEF America REIT II Corp 2 74,150,497 0.33
Southern California Edison Compan 2 102,419,258 0.33Prado Town Center West LLC 264 71,125,6300.32
ARC SLSTCCA001 LLC 4 99,413,280 0.32EQR - Wellfan 2008 3 70,617,530 0.32
n 6 0.32Gateway Village LLC98,426,895 1 67,743,300 0.30
Aerospace Dynamics International I
Total 1,432,988,293 320 4.66% 5 58 1,051,290,889 4.69%
All Others 29,294,357,12695.34 21,358,388,31495.31
Total Assessed Valuation$30,727,345,419100.00%$22,409,679,203100.00%
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone, LA County Assessor 2017/18 Combined Tax Rolls
173
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
COLLECTIONSTOTALPERCENT
FISCALTAXESPERCENTIN SUBSEQUEN
TCOLLECTIONSCOLLECTIONS
YEARLEVIEDCOLLECTIONSCOLLECTIONSYEARSTO DATETO DATE
2008-09
11,361,604 11,925,28595.3%16,72211,378,32695.41%
2009-10 13,711,940 14,202,62696.5% 13,711,940-96.55%
2010-11 13,829,640 14,172,03097.6%50,60513,880,24697.94%
2011-12 13,999,770 14,299,99997.9%49,86214,049,63398.25%
2012-13 18,297,746 18,634,85098.2% 18,297,746-98.19%
2013-14 21,128,332 21,446,96398.5% 21,128,332-98.51%
2014-15 22,795,838 23,131,31798.5% 22,795,838-98.55%
2015-16 23,957,604 24,304,88798.6% 23,957,604-98.57%
2016-17
25,178,564 25,483,38598.8% 25,178,564-98.80%
26,957,834 27,299,25498.7% 26,957,834-98.75%
2017-18
TAX COLLECTIONS & DELINQUENCY -LAST TEN FISCAL YEARS
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
2008-092009-102010-112011-122012-132013-142014-152015-162016-172017-18
FISCALYEAR
LEVIESCOLLECTIONSDELINQUENT 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
174
City of Santa Clarita
Successor Agency
Top Property Owners Based on Net Values
Fiscal Year 2017-18
SecuredUnsecuredCombined
% of% of% of
ParcelsValueParcelsValuesValue
OwnerPrimary Use
Net AVNet AVNet AV
Time Warner Cable -$- 0.00% 3 $ 57.84%43,041,370 43,041,370 $ 11.09%Unsecured
1
2
Casden Santa Clarita LLC2 4 20,877,9202.93% -- 0.00%20,877,920 4.36%Vacant
(Pending Appeals On Parcels)
7 18,658,747 1 0.00%18,786,339127,592 4.71%Industrial
3Saugus Station LLC3.16%
JDH Mulberry LLC 1 1.43% -- 0.00%10,810,000 2.13%Residential
410,810,000
Lyons Properties Limited 1 10,481,5421.78% -- 0.00%10,481,542 2.65%Commercial
5
(Pending Appeals On Parcels)
Telfair Corporation 2 9,018,8281.53% -- 0.00%9,018,828 2.28%Commercial
6
(Pending Appeals On Parcels)
25805 San Fernando LLC 1 8 ,369,4661.42% -- 0.00%8,369,466 2.11%Commercial
7
RFT Sprouts LLC, et. al. 3 8,011,5131.36% -- 0.00%8,011,513 2.02%Residential
8
23801 San Fernando Rd Landco LLC 1 7,565,0061.28% -- 0.00%7,565,006 1.91%Institutional
9
3 7,178,9181.22% 1 0.00%7,185,4666,548 1.81%Residential
10Peter and Barbara Coeler, et. al.
(Pending Appeals On Parcels)
Top Ten Total
4 3 $100,971,940 16.11% 43,175,510 5$ 57.84%144,147,450 $35.07%
Agency Total
602,803,617 76,826,195 679,629,812
Incremental Net AV Total
$356,660,56828.31%$ 73.45%415,555,111 58,894,543$34.71%
Source: HdL Coren & Cone
175
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City of Santa Clarita
Successor Agency
Project Area Assessment Appeals Summary and Tax Collection History
Fiscal Years 2009-10 Through 2017-18
Project Area Assessment Appeals Summary—FY 2017-18
Estimated
No. of No. of No. & Value of Estimated No. Reduction on
Total No. of ResolvedSuccessfulAverageAppealsof Appeals Pending Appeals
AppealsAppealsAppealsReductionPendingAllowedAllowed
27521017564%33 / $92,694,7052849,096,498 $
Tax Collection History
For Fiscal Years 2009-10 Through 2017-18
Current Year
Current Year Prior Year CollectionTotal Collection
CollectionCollectionPercentagePercentage
YearTax LevyTotal
2009-104,068,572 $ 3,885,719 $ 42,260 $ $ 3,927,97996%97%
2010-113,618,835 2,744,263 (204,741) 2,539,52376%70%
(1)
2011-12
2,934,904 3,762,457 218,094 3,152,998 78%84%
(2)
2012-13
2,786,791 3,485,808 275,290 3,062,081 80%88%
(2)
2013-14
2,828,495 3,526,463 815,124 3,643,619 80%103%
(2)
2014-15
3,185,967 3,836,835 158,652 3,344,619 83%87%
(2)
2015-16
3,430,748 3,579,829 518,292 3,704,259 96%103%
(2)
2016-17
3,819,731 4,063,020 797,178 3,983,145 94%98%
(2)
2017-18
3,944,498 4,188,893 860,267 4,046,235 94%97%
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.
176
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2017-18
LANDSTRUCTURETOTAL
ASSESSEDASSESSEDASSESSEDTAXABLE
ASSESSOR’S
PARCEL NUMBERPROPERTY OWNERVALUES ($)VALUES ($)VALUES ($)ACREAGE
2861-058-071Valencia Town Center Venture LP1,261,095 $ $ 192,163$ 1,453,258 0.84
2861-058-072Valencia Town Center Venture LP3,495,554 18,172,669 21,668,223 4.81
2861-058-073Valencia Town Center Venture LP27,624,175 3,404,070 31,028,245 15.68
2861-058-076Valencia Town Center Venture LP879,987 87,398 967,385 1.18
2861-058-077Valencia Town Center Venture LP4,751,549 406,423 5,157,972 6.70
2861-058-081Valencia Town Center Venture LP16,068,719 169,909,906185,978,625 14.34
2861-058-084Valencia Town Center Venture LP3,314,888 9,608,384 12,923,272 2.05
2861-058-085Valencia Town Center Venture LP432,372 216,184 648,556 0.33
Totals:$ 57,828,339$ 259,825,536 201,997,197$ 45.94
177
MAX TAX RATE APPLIED
CLASS($)MAX TAXRATE ($)CHARGE ($)
136,342 $ 30,677 $ 26,839 $ 22,655 $
13 6,342 174,807 26,839 129,095
13 6,342 569,923 26,839 420,888
13 6,342 43,029 26,839 31,777
13 6,342 243,495 26,839 179,821
36,342.4827 &
244,797.30
1&2 521,219 26,842 384,920
13 6,342 74,502 26,839 55,020
13 6,342 11,920 26,839 8,803
$1,232,978
178
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
GOVERNMENTAL ACTIVITIES
CERTIFICATESTAX ALLOCATION
FISCALPRIVATE CAPITAL
OF PARTICIPATION(1) (3)BONDS(4)
YEARLOANSBONDS (2)PLACEMENT LEASE (5)LEASESTOTAL
2008-09 15,525,000 14,790,000 2,823,907 13,330,000 - 29,860,0008,850,00011,37085,190,277
2009-1013,760,000 2,017,793 15,525,000 -13,075,000 29,460,0008,730,000 82,569,417 1,624
2010-1112,700,000 1,413,786 15,525,000 -12,805,000 29,040,0008,605,000 80,088,786-
2011-1211,610,000 1,040,000 15,490,000 -12,525,000-- 242,417 40,907,417
2012-1310,480,549 810,000 15,379,349 -12,316,280-- 201,880 39,188,058
2013-14 15,291,374 9,323,138 580,000 12,002,622 --- 154,705 37,351,839
2014-15 15,175,988 8,128,138 300,000 11,673,964 --- 217,615 35,495,705
2015-16- - 200,000 6,328,411 26,012,352 -- 138,877 32,679,640
2016-17- - 100,000 4,984,543 25,262,456 -- 60,444 30,407,443
2017-18 - - - 3,595,740 40,380,831 -- 32,200 44,008,771
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
0
-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 2016B Lease Revenue Refunding Bonds (OSPD)
to advance refund $15,070,000 of outstanding 2007 Series certificates.
d
- On June 1, 2018, the Santa Clarita Public Financing Authority issued $15,300,000 in Lease Revenue Bonds for the acquisition an
retrofit of streetlights located within the City from Southern California Edison.
(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 Clarita, Administrative Services Department - Finance Division
179
PERCENTAGE
BUSINESS-TYPE ACTIVITIESOFOUTSTANDING
TOTA
LTAXABLEDEBTDEBT TO
LEASEPRIMARYASSESSEDPERPERSONAL
PAYABLETOTA
LGOVERNMENTVALUECAPITAINCOME
485,304 485,304 85,675,5810.38% 4 84 5%
248,304 248,304 82,817,7210.39% 4 66 5%
-- 80,088,7860.38% 4 54 N/A
-- 40,907,4170.19% 2 31 N/A
-- 39,188,0580.19% 1 91 N/A
-- 37,351,8390.15% 1 79 N/A
-- 35,495,7050.14% 1 66 N/A
-- 32,679,6400.12% 1 49 N/A
-- 30,407,4430.11% 1 41 N/A
-- 44,008,7710.14% 2 03 N/A
OUTSTANDING DEBT PER CAPITA
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
Last Ten Fiscal Years
600
600
500
500
$484
$466
$484
$454
$466
$454
400
400
300
300
$231
$231
200
200
$166
$166
$203
$179
$149
$191
$179
$149
$191
$141
100
$141
100
0
08-0909-1010-1111-1212-1313-1414-1515-1616-17
0
08-0909-1010-1111-1212-1313-1414-1515-1616-1717-18
Fiscal Year
Fiscal Year
180
City of Santa Clarita
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
PERCENTAGE
OUTSTANDING GENERAL BONDED DEBTOF
TAXABLEDEBT
FISCALREVENUECERTIFICATES OFASSESSEDPER
YEARPOPULATION (1)BONDS PARTICIPATIONTOTALVALUECAPITA
2008-09 13,330,000 177,150 30,315,000 43,645,000 0.19%246
2009-10 13,075,000 177,641 29,285,000 42,360,000 0.20%238
2010-11 12,805,000 176,971 28,225,000 41,030,000 0.19%233
2011-12 12,525,000 177,445 27,100,000 39,625,000 0.19%223
2012-13 12,316,280 204,951 25,859,898 38,176,178 0.18%186
2013-14 12,002,622 209,130 24,614,512 36,617,134 0.15%175
2014-15 11,673,964 213,231 23,304,126 34,978,090 0.13%164
2015-16 26,012,352 219,611 - 26,012,3520.10%118
2016-17216,35025,262,456- 25,262,4560.09%116.77
2017-18216,58940,380,831- 40,380,8310.13%186.44
GENERAL BONDED DEBT OUTSTANDINGGENERAL BONDED DEBT OUTSTANDING
PER CAPITAPER CAPITA
Last Ten Fiscal YearsLast Ten Fiscal Years
350350
300300
$223$223
250250
$186$186
$238$238
$246$246
$233$233
200200
$164$164
$118$118
150150$186
$175$175
100100
$117$117
5050
00
08-0909-1010-1111-1212-1313-1414-1515-1616-1717-1808-0909-1010-1111-1212-1313-1414-1515-1616-17
Fiscal YearFiscal Year
Source:(1) State of California, Finance Department
181
City of Santa Clarita
Direct and Overlapping Tax and Assessment Debt
June 30, 2018
2017-18 Assessed Valuation: $30,727,345,419
(Net of Redevelopment Agency Incremental Value of $415,555,111)
2017-18 Population:216,589
Percen
tCity’s Share
Total DebtApplicableof Debt
(1)
To City
06/30/201806/30/2018
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
:
Santa Clarita Community College District$ 73.28%190,410,813 259,836,537$
William S. Hart Union High School Distric
t 73.27%257,514,217 351,454,487$
William S. Hart Union High School District Community Facilities District No. 87-18 0,000 100%$ 80,000
William S. Hart Union High School District Community Facilities District No. 90-1 320,000100%320,000 $
William S. Hart Union High School District Community Facilities District No. 2015-1 24,930,000100%24,930,000 $
Los Angeles Community College and Unified School Districts14,769,980,000 0.00001%$ 1,477
Castaic Union School District 11,505,32727.996%3,221,031 $
Newhall School District 59.93%4,728,240 7,890,000$
Newhall School District School Facilities Improvement District No. 2011-159,390,000 60.71%36,054,481 $
Saugus Union School District 23,821,99187.85%20,927,381 $
Saugus Union School District School Facilities Improvement District No. 2014-1 41,820,00088.08%36,834,220 $
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area
N 19,485,00096.28%18,760,548 $
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area
N 21,210,00093.15%19,756,055 $
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area
N 21,265,000100%21,265,000 $
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area
N 100%7,565,000 7,565,000$
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area N 100%7,980,000 7,980,000$
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area N 15,780,000100%15,780,000 $
Saugus-Hart School District Community Facilities District No. 2000-110,015,000 100%10,015,000 $
Saugus-Castaic School District Facilities Financing Authority Community Facilities District N16,775,000 53.58%8,987,206 $
Sulphur Springs Union School District 48,596,06292.84%45,117,556 $
Sulphur Springs Union School District Community Facilities District No. 2002-1 24,880,000100%24,880,000 $
Sulphur Springs Union School District Community Facilities District No. 2006-119,300,000 100%19,300,000 $
City of Santa Clarita Open Space and Parkland Assessment District13,450,000 100%13,450,000 $
City of Santa Clarita Landscaping and Lighting Streetlighting Zones A and B15,300,000 99.39%15,206,058 $
City of Santa Clarita Community Facilities District No. 2002-114,500,000 100%14,500,000 $
City of Santa Clarita 1915 Act Bonds 100%660,000 660,000$
Los Angeles County Regional Park and Open Space Assessment District 26,575,0002.16%572,957 $
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT$ 818,817,240
Los Angeles County General Fund Obligations 2.16%41,438,156 1,921,992,404$
Los Angeles County Superintendent of Schools Certificates of Participation 2.16%140,147 6,500,306$
Los Angeles County Sanitation District No. 32 Authority 11,390,93874.90%8,531,699 $
Santa Clarita Community College District Certificates of Participation 73.28%7,020,320 9,580,000$
William S. Hart Union High School District Certificates of Participation 29,136,05973.72%21,348,282 $
Castaic Union School District Certificates of Participation 27.996%993,858 3,550,000$
Saugus Union School District Certificates of Participation 10,910,00087.849%9,584,326 $
Sulphur Springs Union School District Certificates of Participation 92.84%23,558,658 25,375,000$
Los Angeles Unified School District Certificates of Participation 195,975,0000.00001%$20
City of Santa Clarita Obligations 13,197,940100.00%$ 13,197,940(2)
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT125,813,404 $
Total Net Direct and Overlapping General Fund Debt$ 125,813,404
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):33,980,000 100.000%33,980,000
Total Direct Debt$ 26,647,940
t 951,962,704
Gross Total Overlapping Deb
Net Total Overlapping Debt$ 951,962,704
GROSS COMBINED TOTAL DEBT$ 978,610,644(3)
NET COMBINED TOTAL DEBT$ 978,610,644
(1)Percentage of overlapping debt applicable to the city is estimated using taxable assed property value. Applicable percentages were estimated b
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 va
(2)Excludes $32,200 Capital Lease Obligations
(3)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations
Ratios to 2017-18 Assessed Valuation:
Direct Debt ($13,450,000)…………………………………………………………………0.04%
Total Overlapping Tax and Assessment Debt……………………………………………...2.66%
Total Direct Dept ($26,647,940)………………………………………………………….0.09%
Gross Combined Total Debt…………………………………………………………………3.18%
Net Combined Total Debt……………………………………………………………………3.18%
Ratios to Redevelopment Successor Agency Incremental Valuation ($415,555,111)
Total Overlapping Tax Increment Debt……………………………………………………..8.18%
C
Source: MuniServices, LL
182
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
FISCAL YEAR
17-1816-1715-1614-1513-14
Assessed valuation$ 28,685,821,032 30,727,345,419$ 27,330,863,338 $ 26,111,942,635 $ 24,269,472,731$
Conversion percentage25%25%25%25%25%
Adjusted assessed valuation7,681,836,355 7,171,455,258 6,832,715,835 6,527,985,659 6,067,368,183
Debt limit percentage15%15%15%15%15%
Debt limit1,152,275,4531,075,718,2891,024,907,375979,197,849910,105,227
Total net debt applicable to limit:
General obli
gation bonds-- - - -
gal debt margin$1,152,275,453$1,075,718,289$1,024,907,375$979,197,849$910,105,227
Le
Total debt applicable to the limit
as a percentage of debt limit0%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).
year from current full valuation
The computations shown above reflect a conversion of assessed valuation data for each fiscal
gal debt margin was enacted by the State of California for local
perspective to the 25% level that was in effect at the time the le
governments located within the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
183
FISCAL YEAR
12-1311-1210-1109-1008-09
$ 21,168,938,632 20,985,441,963$ 21,113,942,935 $ 21,262,122,246 $ 22,410,452,203$
25%25%25%25%25%
5,246,360,4915,292,234,6585,278,485,7345,315,530,5625,602,613,051
15%15%15%15%15%
786,954,074793,835,199791,772,860797,329,584840,391,958
-- - - -
$$793,835,199$791,772,860$797,329,584$840,391,958
786,954,074
0%0%0%0%0%
LEGAL DEBT MARGINLEGAL DEBT MARGIN
Last Ten Fiscal YearsLast Ten Fiscal Years
1,2001,200
1,0001,000
800800
600600
(in Millions)(in Millions)
400400
200200
00
08-0909-1010-1111-1212-1313-1414-1515-1616-1717-1808-0909-1010-1111-1212-1313-1414-1515-1616-1717-18
Fiscal YearFiscal Year
184
City of Santa Clarita
Pledged Revenue Coverage
Last Ten Fiscal Years
TRANSIT
LESSNET
FiscalTRANSITOPERATINGAVAILABLEDEBT SERVICE
YearREVENUES(1)EXPENSES(2)REVENUESPrincipalInterestCOVERAGE
2008-09 23,014,324 26,612,418 3,598,094 384,846 42,172 1.60%
2009-10 23,525,855 21,179,438 (2,346,417) 236,999 23,149 1.23%
2010-11 24,270,533 32,507,582 8,237,048 248,304 11,844 0.80%
2011-12 25,175,688 26,133,433 957,745 - - -
2012-1329,420,486 25,901,822 3,518,664- - -
2013-1433,298,907 27,044,874 6,254,034- - -
2014-1524,008,186 28,292,380 (4,284,194)- - -
2015-1626,853,481 28,327,301 (1,473,820)- - -
2016-1728,652,461 30,231,012 (1,578,551)- - -
2017-1827,971,473 30,021,366 (2,049,893)- - -
(1)Includes Other revenues, Transfers in and Capital contributions
NOTE:
(2)Includes Transfers out and Other expenses
185
a
City of Santa Clarit
Demographic and Economic Statistics
Last Ten Calendar Years
AVERAGEAVERAGEPER
CITY OFANNUALLOS ANGELESANNUALCAPITATOTAL
SANTA CLARITAPERCENTAGECOUNTYPERCENTAGEPERSONALPERSONALUNEMPLOYMENT
POPULATION(1)POPULATION(1)INCOME(2)INCOME(2)RATE (3)
YEARINCREASEINCREASE
0.43%9,801,096 177,150 0.16%43,119 550,832,000 7.70%
2009
0.54%9,822,121 177,641 0.21%43,999 565,365,000 7.70%
2010
0.15%9,818,605 176,971 -0.04%44,423 575,044,998 7.60%
2011
0.64%9,884,632 177,445 0.67%46,337 604,831,837 6.90%
2012
15.50%9,958,091 204,951 0.74%48,425 635,891,798 6.60%
2013
2.04%10,041,797 209,130 0.84%50,751 673,073,539 4.70%
2014
1.96%10,136,559 213,231 0.94%54,526 727,377,241 6.40%
2015
2.99%10,241,335 219,611 1.03%57,160 760,828,529 4.70%
2016
-1.48%10,241,278 216,350 0.00%N/AN/A4.40%
2017
0.11%10,283,729 216,589 0.41%N/AN/A5.10%
2018
POPULATION INCREASE
Last Ten Fiscal Years
17.00%
15.50%
15.00%
13.00%
11.00%
9.00%
7.00%
5.00%
2.99%
3.00%
2.04%
1.96%
0.64%
0.15%
0.54%
0.43%
1.00%
0.11%
-1.00%
2009201020112012201320142015201620172018
YEAR
(1) State of California, Finance Department, as of 1/1/2018
Sources:
(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), Sept. 21, 2018
Note:Reduction in 2017 population numbers due to change in the county controls. The primary factor was
a lowering of the estimated school enrollment.
186
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
2018*2009
PERCENTPERCENT
NUMBERofNUMBERof
ofTOTALofTOTAL
EMPLOYEREMPLOYEESEMPLOYMENTEMPLOYEREMPLOYEESEMPLOYMENT
Six Flags Magic MountainMountain
10.38%3,200 15.64%3,689
Princess CruisesPrincess Cruises
6.80%2,096 8.90%2,100
Henry Mayo Newhall Henry Mayo Newhall
Memorial HospitalMemorial Hospital
6.65%2,052 5.14%1,212
Boston Scientific
3.24%HR Textron845 1,000 3.58%
The Master's College
2.46%The Master's College755 760 3.20%
Walmart
2.37%Speciality Laboratories725 730 3.07%
Cal Arts
2.27%Arvato Services586 700 2.48%
Woodward HRT (formerly
HR Textron)
2.21%Cal Arts500 680 2.12%
Quest Diagnostics
(formerly Speciality
Laboratories)
2.10%Aerospace Dynamics450 648 1.91%
Aerospace Dynamics
2.00%Fanfare Media Works407 617 1.73%
(1) (1)
Largest firms 40.48%12,483Largest firms 47.77%11,269
All others 59.52%18,355All others 52.23%12,323
Grand total30,838 100.00%Grand total23,592 100.00%
*As of March 2018
NOTE:(1)Non-governmental employers
Source: 2018 Economic Outlook Santa Clarita Valley Economic Dev Corp & College of the Canyons
2009 CAFR
187
City of Santa Clarita
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
FISCAL YEAR
Function17-1816-1715-1614-1513-1412-1311-1210-1109-1008-09
General government180.60 150.00 91.00 8 7.60 8 7.60 8 9.60 8 4.35 8 5.75 8 9.75 95.75
Public safety (1)
- - - - - - - - - -
Public works 139.50 1 28.50 1 31.50 1 25.00 1 22.00 1 29.00 1 26.00 1 27.00 1 28.00 135.50
Community developmen44.00 4 4.00 3 7.00 4 1.00 4 1.00 3 2.00 3 0.50 3 3.00 3 3.00 36.00
Parks and Recreation68.25 63.90 112.15 1 11.15 1 09.15 1 08.15 1 05.90 1 06.50 1 10.50 111.50
Transit 10.00 1 2.00 1 2.00 1 1.00 1 1.00 1 1.00 1 3.00 1 2.00 1 2.00 14.00
Totals 442.35 3 98.40 3 83.65 3 75.75 3 70.75 3 69.75 3 59.75 3 64.25 3 73.25 392.75
CITY OF SANTA CLARITA -EMPLOYEES
Last Ten Fiscal Years
442.35
450.00
398.40
392.75
383.65
375.75
373.25
370.75
369.75
400.00364.25
359.75
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
08-0909-1010-1111-1212-1313-1414-1515-1616-1717-18
Fiscal Year
(1)Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
188
City of Santa Clarita
Operating Indicators by Function
Last Ten Fiscal Years
FISCAL YEAR
Function17-1816-1715-1614-1513-1412-1311-1210-1109-1008-09
Police:
(1)
Parking citations issued
15,505 13,133 9,035 4,765 4,786 5,726 5,521 6,577 5,114 4,126
Parking revenue collected$498,749$470,843 $379,384 $320,682 $323,040 $341,607 $335,663 $323,408 $238,478 $235,634
Public works:
Street resurfacing (miles) 38.9 45.0 15.5 80.0 20.9 18.0 24.0 24.0 33.8 14.0
Parks and Recreation:
Number of recreation classes2,903 2,992 2,918 2,189 2,557 2,548 2,106 2,080 2,447 2,284
Number of facility rentals (times)12,013 19,924 13,390 19,018 14,604 13,000 11,042 10,754 10,239 9,801
Transit:
(2)
2,864,351 2,775,327 3,167,021 3,422,015 3,540,969 3,661,302 3,612,060 3,724,490 3,922,052 4,210,842
Number of customers served
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 served includes those outside of the City boundaries.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
189
City of Santa Clarita
Capital Assets Statistics by Function
Last Ten Fiscal Years
FISCAL YEAR
Function17-1816-1715-1614-1513-1412-1311-1210-1109-1008-09
Public works:
Streets (miles) 540 537 516 497 496 496 496 496 496 496
(1)
Street lights 18,662 17,843 17,843 17,843 17,843 17,843 15,081 14,963 14,939 14,739
Traffic signals (City Jurisdiction) 187 186 180 180 177 177 171 170 166 172
Traffic signals (Joint Jurisdiction) 5 5 5 5 5 5 6 1 6 5
Parks and recreation:
Number of parks 32 32 32 32 29 29 24 23 20 20
Community centers 2 2 2 2 2 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 (989) 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
190
CITY OF SANTA CLARITA, CALIFORNIA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2018
CITY OF SANTA CLARITA, CALIFORNIA
SINGLE AUDIT REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
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 Standards1
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 7
Schedule of Findings and Questioned Costs
I.Summary of Auditors’ Results 8
II.Financial Statement Findings 9
III.Federal Award Findings and Questioned Costs 9
Schedule of Prior Year Audit Findings and Recommendations
10
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, 2018, 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 27, 2018. Our report includes an emphasis of matter regarding the City’s adoption of Governmental
Accounting Standards Board (GASB) Statements No. 74, Financial Reporting for Postemployment Benefit Plans
Other Than Pension Plans, No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions,and No. 85, Omnibus 2017, effective July 1, 2017. Our report also includes an emphasis of matter
regarding the City’s restatement of beginning net position as of July 1, 2017 for certain capital assets and
revenues.
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.
Adeficiency 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.
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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.
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 City’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.
Rancho Cucamonga, California
December 27, 2018
2
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, 2018. 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 perform 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, 2018.
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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.
Adeficiency 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. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
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.
4
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, 2018, and
the related notes to the financial statements, which collectively comprise the City’s basic financial statements.
We issued our report thereon dated December 27, 2018, which contained unmodified opinions on those financial
statements. Our report includes an emphasis of matter regarding the City’s adoption of Governmental Accounting
Standards Board (GASB) Statements No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans, No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,
and No. 85, Omnibus 2017, effective July 1, 2017. Our report also includes an emphasis of matter regarding the
City’s restatement of beginning net position as of July 1, 2017 for certain capital assets and revenues. 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.
Rancho Cucamonga, California
December 27, 2018
5
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
FederalPass-Through/Amount
grantor / pass-through
Federal CFDAIdentificationFederalProvided to
grantor / program or cluster titleNumberNumberExpendituresSubrecipients
U.S. Department of Housing and Urban Development
Direct Assistance:
Community Development Block Grant/Entitlement Grants14.218B-15-MC-06-05768,081$ 8,081$
Community Development Block Grant/Entitlement Grants14.218B-16-MC-06-057686,355 86,355
Community Development Block Grant/Entitlement Grants14.218B-17-MC-06-0576519,400 416,515
Subtotal CDBG Entitlement Grants Cluster613,836 510,951
510,951613,836
Total U.S. Department of Housing and Urban Development
U.S. Department of Justice
Direct Assistance:
Edward Byrne Memorial Justice Assistance Grant Program16.7382014-DJ-BX-03191,525 -
Subtotal Edward Byrne Memorial Justice Assistance Grant Program1,525 -
partment of Justice -1,525
Total U.S. De
U.S. Department of Transportation
Passed through the State of California, Transportation Department:
Highway Planning and Construction20.205BPMPL-5450(086)250,593 -
Highway Planning and Construction20.205BPMPL-5450(095)997 -
Highway Planning and Construction20.205BHLS-5405(082)7,968,821 -
Highway Planning and Construction20.205BHLS-5450 (008)19,496 -
Highway Planning and Construction20.205CML-5450(083)53,774 -
Highway Planning and Construction20.205HSIPL-5450(085)707,076
Highway Planning and Construction20.205HSIPL-5450(091)338 -
Highway Planning and Construction20.205HSIPL-5450(093)19,012 -
Highway Planning and Construction20.205HSIPL-5450(092)3,078 -
Highway Planning and Construction20.205HSIPL-5450(094)27,944 -
Highway Planning and Construction20.205APTL-5450(087)605,383
Highway Planning and Construction20.205APTLNI-5450(090)52,601 -
Subtotal Highway Planning and Construction Cluster9,709,113 -
Direct Assistance:
Federal Transit Formula Grants20.507 CA-90-Y719-01 -53,922
-46,055
Federal Transit Formula Grants20.507 CA-2017-138-00
Federal Transit Formula Grants20.507 CA-90-Y276-02 -70,768
Federal Transit Formula Grants20.507 CA-90-Y276-02 -139,355
Federal Transit Formula Grants20.507 CA-90-Y276-02 -3,190
Federal Transit Formula Grants -442,684
20.507 CA-90-Y276-02
Federal Transit Formula Grants20.507 CA-90-Y276-02 -32,187
Federal Transit Formula Grants20.507 CA-90-Y276-02 -272,066
Federal Transit Formula Grants20.507 CA-90-Y851-01 -280,653
-868,513
Federal Transit Formula Grants20.507 CA-2016-044-00
Federal Transit Formula Grants20.507 CA-2016-051-00 -786,269
Subtotal Federal Transit Cluster -2,995,662
Total U.S. Department of Transportation
-12,704,775
U.S. Department of Homeland Security
Direct Assistance:
Pre-Disaster Mitigation97.047 LPDM10-PJ06 2012-1001 -284,086
Total U.S. Department of Homeland Security
-284,086
Total Federal Awards$ 510,95113,604,222$
See accompanying notes to Schedule of Expenditures of Federal Awards
6
CITY OF SANTA CLARITA, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
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.
7
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
I. SUMMARY OF AUDITORS’ RESULTS
FINANCIAL STATEMENTS
Type of auditors' report issued on whether the financial statements audited were
prepared in accordance with GAAP:Unmodified
Internal control over financial reporting:
Material Weaknesses identified?No
Significant Deficiencies identified?None reported
Noncompliance material to financial statements noted?No
FEDERAL AWARDS
Internal control over major federal programs:
Material Weaknesses identified?No
Significant Deficiencies identified?None reported
Type of auditors' report issued on compliance for major federal programs:Unmodified
Any audit findings disclosed that are required to be reported in accordance with
2 CFR 200 section 200.516(a)?No
Identification of major federal programs:
CFDA NumberName of Federal Program or Cluster
20.205Highway Planning and Construction Cluster
Dollar threshold used to distinguish between Type A and Type B programs:750,000$
Auditee qualified as low-risk auditee?No
8
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
II. FINANCIAL STATEMENT FINDINGS
None noted.
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None noted.
9
CITY OF SANTA CLARITA, CALIFORNIA
SCHEDULE OF PRIOR AUDIT FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENDED JUNE 30, 2018
None noted.
10
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, 2018
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, 2018
Table of Contents
Page
INDEPENDENT AUDITORS’ REPORT ................................................................................................. 1
FINANCIAL STATEMENTS
Statement of Net Position ................................................................................................................. 3
Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 4
Statement of Cash Flows .................................................................................................................. 5
Notes to Financial Statements .......................................................................................................... 6
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the Transit Fund’s Proportionate Share of the Net Pension Liability ......................... 22
Schedule of the Transit Fund’s Pension Contributions .................................................................. 23
Schedule of the Transit Fund’s Proportionate Share of the Net OPEB Liability ........................... 24
Schedule of the Transit Fund’s OPEB Contributions ..................................................................... 25
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 (Fund), an enterprise fund
of the City of Santa Clarita, California (the City), as of and for the year ended June 30, 2018, 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 auditors’ 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.
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, 2018, and the changes in its financial position and cash flows for the year then
ended, in accordance with accounting principles generally accepted in the United States of America.
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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, 2018, 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.
The Fund of the City adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions and GASB Statement No. 85,
Omnibus 2017, effective July 1, 2017. 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, schedule of pension contributions, schedule of proportionate share
of the net OPEB liability, and schedule of OPEB 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 27, 2018, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and compliance,
as it relates to the Fund of the City.
Rancho Cucamonga, California
December 27, 2018
2
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 30, 2018
ASSETS
Current assets
Accounts receivable$16,821
Interest receivable1,437
Prepaids14,586
Due from other governments3,765,853
Total current assets3,798,697
Noncurrent assets
Capital assets
Nondepreciable assets17,895,097
Depreciable assets, net61,304,374
Total noncurrent assets79,199,471
Total assets82,998,168
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions714,266
LIABILITIES
Current liabilities
Accounts payable3,032,644
Compensated absences payable60,001
Due to the City of Santa Clarita288,562
Total current liabilities3,381,207
Noncurrent liabilities
Compensated absences payable15,636
Net OPEB liability247,416
Net pension liability1,641,432
Total noncurrent liabilities1,904,484
Total liabilities5,285,691
DEFERRED INFLOWS OR RESOURCES
Deferred inflows related to OPEB34,464
Deferred inflows related to pensions81,126
Total deferred inflows of resources115,590
NET POSITION
Net investment in capital assets79,199,471
Unrestricted(888,318)
Total net position78,311,153$
See notes to financial statements.
3
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 FUND NET POSITION
JUNE 30, 2018
Operating revenues:
Metrolink and EZ pass revenues$ 219,194
Fixed-route passenger fares 3,039,419
Dial-A-Ride passenger fares 114,467
County of Los Angeles operating assistance2,029,458
Specialized transit services 1,026,929
Miscellaneous revenues 558,021
Total operating revenues 6,987,488
Operating expenses:
Salaries and benefits 1,200,651
Administrative services 1,526,045
Contract transportation services 19,332,460
Insurance 94,098
Supplies, utilities and other 1,233,583
Depreciation 4,923,033
Total operating expenses 28,309,870
Operating loss (21,322,382)
Nonoperating revenues (expenses):
Proposition A discretionary 4,160,387
Proposition A specialized transportation651,738
Proposition C expansion 197,183
Proposition C BSIP 46,918
Proposition C transit mitigation 5,899
Proposition C MOSIP 48,851
Proposition C security allocation 203,699
Measure R bus operations 2,598,832
Measure M bus operations 2,301,490
Intergovernmental revenues 36,788
Transit mitigation fees 60,800
Unrealized loss on investments (1,242)
Gain on disposal of capital assets 20,238
Total nonoperating revenues 10,331,581
Loss before contributions and transfers(10,990,801)
Capital contributions:
Federal Transit Administration capital grants2,958,875
Proposition C MOSIP 57,755
Total capital contributions 3,016,630
Transfers from the City of Santa Clarita7,634,532
Transfers to the City of Santa Clarita(1,710,254)
Change in net position (2,049,893)
Net Position:
Beginning of year, as restated 80,361,046
End of year$ 78,311,153
See notes to financial statements.
4
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 30, 2018
Cash flows from operating activities:
Cash received from customers and users4,967,646$
Cash payments to suppliers of goods and services(27,634,286)
Cash payments to employees (1,241,858)
Cash received from other sources 2,587,479
Net cash used in operating activities(21,321,019)
Cash Flows from noncapital financing activities:
Cash transfers out to the City of Santa Clarita(1,710,254)
Cash transfers in from the City of Santa Clarita7,634,532
Federal and state funding received 15,295,030
Net cash provided by noncapital financing activities21,219,308
Cash flows from capital and related financing activities:
Federal and state capital contributions 2,958,875
Sale of capital assets 113,726
Acquisition of capital assets (2,970,574)
Net cash provided by capital and related financing activities102,027
Cash flows from investing activities:
Interest received (2,679)
Net decrease in cash and cash equivalents(2,363)
Pooled cash and cash equivalents
Beginning of year 2,363
End of year$ -
Reconciliation of operating loss to net cash used in operating activities
Operating loss$ (21,322,382)
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation 4,923,033
OPEB Expense 15,960
Pension Expense 291,678
Changes in operating assets and liabilities:
Decrease in accounts receivable 567,637
Decrease in prepaids 103,393
Decrease in accounts payable and accrued liabilities(4,553,943)
Decrease in compensated absences (9,256)
Decrease in due to the City of Santa Clarita(997,550)
Payments related to deferred outflows for pension contributions subsequent to the measurement date(339,589)
Total adjustments 1,363
Net cash used in operating activities(21,321,019)$
See notes to financial statements.
5
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 30, 2018
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 party 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. As of June 30, 2018, the Transit Fund had negative cash balances, which is shown
as amounts due to the City of Santa Clarita.
Prepaids:Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in the financial statements.
6
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 30, 2018
NOTE 1 – 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.
Other Post-Employment Benefits: For purposes of measuring the net OPEB obligation, deferred outflows or
resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary
net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net
position have been determined on the same basis. For this purpose, benefit payments are recognized when
currently due and payable in accordance with the benefit terms. Investments are reported at fair value (see
Note 13).
Generally accepted accounting principles require that the reported results must pertain to liability and asset
information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2016
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
7
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 30, 2018
NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
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.
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, 2018 was $75,637 of which $60,001 was
considered due within one year, and $15,636 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.
Pronouncements Adopted in the Current Year:
GASB Statement No. 75 – In June 2015, GASB issued Statement No. 75 – Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. Statement 75 establishes new accounting and financial reporting
requirements for governments whose employees are provided with OPEB, as well as for certain nonemployer
governments that have a legal obligation to provide financial support for OPEB provided to the employees of other
entities. This Statement is effective for reporting periods beginning after June 15, 2017. The City implemented this
Statement effective July 1, 2017.
GASB Statement No. 85 – In March 2017, GASB issued Statement No. 85 – Omnibus 2017. The objective of this
Statement is to improve consistency in accounting and financial reporting by addressing practice issues that have
been identified during implementation and application of certain GASB Statements. This Statement is effective for
reporting periods beginning after June 15, 2017. The City implemented this Statement effective July 1, 2017.
8
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 30, 2018
NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Pronouncements Issued But Not Yet Adopted:
GASB Statement No. 83 – In November 2016, GASB issued Statement No. 83 – Certain Asset Retirement
Obligations.This Statement addresses accounting and financial reporting for certain asset retirement obligations
(AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A
government that has legal obligations to perform future asset retirement activities related to its tangible capital
asset should recognize a liability based on the guidance in this Statement. This Statement also requires disclosure
of information about the nature of a government’s ARO, the methods and assumptions used for the estimates of
the liabilities, and the estimated remaining useful life of the associated tangible capital assets. The requirements
of this Statement are effective for reporting periods beginning after June 15, 2018, or the 2018-19 fiscal year. The
City has not determined the effect of the Statement.
GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective
of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and
financial reporting purposes and how those activities should be reported. The requirements of this Statement are
effective for reporting periods beginning after December 15, 2018, or the 2019-20 fiscal year. The City has not
determined the effect of this Statement.
GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this
Statement is to better meet the information needs of financial statement users by improving accounting and
financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified
as operating leases and recognized as inflows of resources or outflows of resources based on the payment
provisions of the contract. It establishes a single model for lease accounting based on the foundational principle
that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to
recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information
about governments’ leasing activities. The Statement is effective for the reporting periods beginning after
December 15, 2019, or 2020-2021 fiscal year. The City has not determined the effect of the Statement.
GASB Statement No. 88 – In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related to
Debt, including Direct Borrowings and Direct Placements. The objective of this Statement is to improve
consistency in the information that is disclosed in the notes to government financial statements related to debt,
including direct borrowings and direct placements, and to provide financial statement users with additional
essential information about debt. This Statement is effective for reporting periods beginning after June 15, 2018,
or the 2018-19 fiscal year. The City has not determined the effect of this Statement.
GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost
Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the
relevance and comparability of information about capital assets and the cost of borrowing for a reporting period
and (b) to simplify accounting for certain interest costs. This Statement is effective for reporting periods
beginning after December 15, 2019, or the 2020-21 fiscal year. The City has not determined the effect of this
Statement.
9
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 30, 2018
NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
GASB Statement No. 90 – In September 2018, the GASB issued Statement No. 90, Majority Equity Interests,
and amendment of GASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the
consistency and comparability of reporting a government’s majority equity interest in a legally separate
organization and to improve the relevance of financial statement information for certain component units. This
Statement is effective for reporting periods beginning after December 15, 2018, or the 2019-20 fiscal year. The
City has not determined the effect of this Statement.
NOTE 2 – DUE FROM OTHER GOVERNMENTS
Due from other governments consists of the following at June 30, 2018:
Agency
Los Angeles County2,232,362$
Federal Transit Administration731,213
Other Agencies802,278
$3,765,853
Due from other governments relate to various program support revenues received from other governmental in
support of transit operations and programs.
NOTE 3 – CAPITAL ASSETS
Changes in capital assets of the Fund at June 30, 2018, consisted of the following:
Balance
June 30, 2017, Balance
As RestatedAdditionsDeletionsJune 30, 2018
Non-depreciable assets:
Land15,087,880$ -$ -$ 15,087,880$
Construction1,658,051 1,149,166 - 2,807,217
Total non-depreciable assets16,745,931 1,149,166 - 17,895,097
Depreciable assets:
Site improvements12,941,276 - - 12,941,276
Building and improvements41,483,799 - - 41,483,799
Equipment55,821,901 1,821,409 (2,582,693) 55,060,617
Total depreciable assets110,246,976 1,821,409 (2,582,693) 109,485,692
Less accumulated depreciation
Site improvements(3,263,591) (568,221) - (3,831,812)
Building and improvements(11,925,733) (883,346) - (12,809,079)
Equipment(30,558,166) (3,471,466) 2,489,205 (31,540,427)
Total accumulated depreciation(45,747,490) (4,923,033) 2,489,205 (48,181,318)
Total depreciable assets, net64,499,486 (3,101,624) (93,488) 61,304,374
Total capital assets, net81,245,417$ (1,952,458)$ (93,488)$ 79,199,471$
10
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 30, 2018
NOTE 4 – TRANSFERS TO/FROM THE CITY OF SANTA CLARITA
During the year ended June 30, 2018, the Transit Fund transferred $1,710,254 to the City of Santa Clarita for
support of transit operations. Transfers to the Transit Fund from the City in the amount of $7,634,532 were made
as follows:
Proposition A$ 5,067,401
Proposition C 2,567,131
$ 7,634,532
NOTE 5 – PENSION PLAN
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.
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.
11
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 30, 2018
NOTE 5 – PENSION PLAN (CONTINUED)
The Plan's provisions and benefits in effect at June 30, 2018, are summarized as follows:
Miscellaneous
Tier 1
Tier 2Tier 3
Formula2.7% at 552% at 602% at 62
Benefit vesting schedule5 years of service5 years of service5 years of service
Benefit paymentsmonthly for lifemonthly for lifemonthly for life
Retirement age556062
Monthly benefits, as a % of annual salary2.7%2.0%2.0%
Required employee contribution rates*8%7%5.75%
Required employer contribution rates 15.845%15.845%5.75%
Tier 1
Tier 2Tier 3
Applies to:Employees hired before Employees hired Employees hired
April 9, 2011, including between April 9, 2011 January 1, 2013 or later
those hired as part time and December 31, 2012, (if employee has not
seasonal (PTS) who or those hired January been a CalPERS
later convert to regular 1, 2013 or later, who member with a public
full time employees.have been a CalPERS agency, or in a
member with a public reciprocal plan within
agency or in a the last 6 months)
reciprocal plan within
the last 6 months). Also
includes PTS who later
convert to regular full
time employees
* For unrepresented Tier 1 participants, the City pays 2% of the required employee contribution. For the SEIU Tier 1
participants, the City pays 2% 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.
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, 2018 were $339,564.
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 30, 2018
NOTE 5 – PENSION PLAN (CONTINUED)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2018, 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 $1,641,432.
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, 2017, 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, 2016, rolled forward to June 30, 2017, 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, 2016 and 2017 were as follows:
Proportion - June 30, 20163.51435%
Proportion - June 30, 20173.51435%
Change - Increase (Decrease)0.00000%
For the year ended June 30, 2018, the Transit Fund recognized pension expense of $291,678. At June 30, 2018,
the Transit Fund reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Difference between expected and actual experience4,881$ (45,868)$
Changes of assumptions309,695 (35,258)
Net difference between projected and actual earnings on
pension plan investments60,126 -
Contributions subsequent to the measurement date339,564 -
Total714,266$ (81,126)$
The amount of $339,564 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019.
Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense
as follows:
Deferred
Outflows/(Inflows)
Fiscal Year Ending of Resources
201966,595$
2020141,868
2021110,675
2022(25,562)
Total293,576$
13
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 30, 2018
NOTE 5 – PENSION PLAN (CONTINUED)
Actuarial Assumptions
The total pension liabilities in the June 30, 2016, actuarial valuation for the City’s Miscellaneous Plan was
determined using the following actuarial assumptions applied to all periods included in the measurement:
Miscellaneous
Valuation DateJune 30, 2016
Measurement DateJune 30, 2017
Actuarial Cost MethodEntry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate7.15%
Inflation2.75%
Payroll Growth3.00%
Projected Salary Increase(1)
Mortality(2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS Membership Data for all Funds
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016, 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 CalPERS website.
The discount rate used for the June 30, 2017, measurement period reflects a .50 percent decrease from 7.65
percent to 7.15 percent.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 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 7.15 percent rate of return on pension plan investments, CalPERS 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-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.
14
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 30, 2018
NOTE 5 – PENSION PLAN (CONTINUED)
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 StrategicExpected Real RateExpected Real Rate
Asset ClassAllocationof Return 1-10 Years (a)of Return 11+ Years (b)
Global Equity47.0%4.90%5.38%
Fixed Income19.0%0.80%2.27%
Inflation Assets6.0%0.60%1.39%
Private Equity12.0%6.60%6.63%
Real Estate11.0%2.80%5.21%
Infrastructure and Forestland3.0%3.90%5.36%
Liquidity2.0%-0.40%-0.90%
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
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% DecreaseCurrent Discount1% Increase
(6.15%)Rate (7.15%)(8.15%)
Transit Fund's proportionate share of the net pension liability$2,671,334$1,641,432$803,384
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.
NOTE6 – OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City has elected through resolution to provide healthcare benefits as an agent multiple-employer plan to
retirees, spouses, and eligible dependents of the City. This plan provides post-employment medical insurance
benefits through the CalPERS Health Plan (the Plan). Accordingly, all amounts and disclosures are presented on
a cost-sharing perspective where the Transit Fund is a participant in the City’s plan. Additional details are
provided on the plan within the City’s CAFR.
Benefits Provided
After age 65, the City contributes a flat monthly rate of $133 for those employees who retire under the PERS
retirement system, subscribe to the PERS Health Insurance System, and have at least five years of CalPERS
service, in accordance with Government Code. This is a perpetual benefit which is available to all PERS retirees
including eligible dependents of deceased retirees. In addition, the City also contributes up to $1,016.58 to the
monthly premium for health insurance for various employee groups, depending on hire date, total years of service
to the City, and the applicable employee bargaining unit.
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 30, 2018
NOTE 6 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Funding Policy
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. The Plan Trustee is U.S. Bank, and Public Agencies Retirement Services (PARS)
is the Trust Administrator.
The obligation of the City to contribute to the plan is established and may be amended by the City
Council. Employees are not required to contribute to the plan. The City has established a practice of contributing
to the irrevocable trust administered by PARS 100 percent of the Cash Subsidy. The Cash Subsidy represents a
level of funding that, if paid on an ongoing basis, is projected to cover the normal cost of each year. The Cash
Subsidy component of the annual required contribution for fiscal year 2017-18 was $1,227,000, of which $29,448
was allocated to the Transit Fund.
Due to an amendment to Actuarial Standards of Practice (ASOP) No. 6 Measuring Retiree Group Benefits
Obligations and Determining Retiree Group Benefits Costs or Contributions, valuations performed after March 31,
2015 requires the calculation of an implicit subsidy component of the annual required contribution and actuarial
liability. The City has elected not to fund the implicit subsidy component of the annual required contribution. The
Transit Fund received credit of $6,168 related to the fiscal year 2017-18 implied subsidy payments which has
been included in the contributions amount above.
Contributions
The plan and its contributions are established by memorandums of understanding with the applicable employee
bargaining units and may be amended by agreements between the City and the bargaining units. The annual
contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2018, the
Transit’s Funds proportionate share of cash contributions were $23,280 in payments to the Plan and the estimated
implied subsidy was $6,168, resulting in total payments of $29,448.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
At June 30, 2018, the net OPEB liability reported by the Transit for its proportionate share of the net OPEB
liability of the Plan, as allocated by the City, was $247,416. The net OPEB liability was measured as of June 30,
2018, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of June 30, 2016, rolled forward to June 30, 2018, using actuarial update procedures. The Transit
Fund’s proportion of the net OPEB liability was based on actual contributions paid by the Transit Fund in relation
to the total City’s contributions to the OPEB plan, as determined by the City. At June 30, 2018, the Transit Fund’s
proportion was 2.4 percent.
16
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 30, 2018
NOTE 6 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
For the year ended June 30, 2018, the Transit Fund recognized OPEB expense of $45,408 and reported deferred
inflows of resources related to OPEB from the following sources:
Deferred
Inflows
of Resources
Changes of assumptions(22,488)$
Net difference between projected and actual earnings on plan investments(11,976)
Total$ (34,464)
Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as
follows:
Year ended
June 30,Amortization
2019(6,216)$
2020(6,216)
2021(6,216)
2022(6,192)
2023(3,216)
2024, and thereafter(6,408)
Total(34,464)$
17
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 30, 2018
NOTE 6 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Actuarial Assumptions
The total OPEB liability in the June 30, 2016 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Valuation DateJune 30, 2016
Contribution PolicyCity contributes full cash benefit ADC. Implied Subsidy benefit
on pay-as-you-go basis.
Discount Rate5.60% at June 30, 2018
5.46% at June 30, 2017
Expected City contributions projected to be insufficient to pay
all benefits from trust.
Municipal Bond IndexBond Buyer 20-bond Index
3.87% June 30, 2018
3.58% June 30, 2017
Long Term Return on Assets6.50%
General Inflation3% per annum
Mortality, Retirement, Disability, Termination
1997-2011 CalPERS experience study
Mortality Improvement
Fully generational Scale MP-14 with convergence in 2022
Salary Increases
Aggregate -3%
Merit - 1997-2011 CalPERS experience study
Medical TrendNon-Medicare - 6.5% for 2018, decreasing to an ultimate rate of
5.0% in 2021 and later years
Medicare - 6.7% for 2018, decreasing to an ultimate rate of
5.0% in 2021 and later years
Healthcare Participation for Future RetireesHired < 1/1/08: 100%
Hired > 1/1/08: 60%
Cap IncreasesNo increase on $1,016.58 cap
Medical trend for EE+1 cap
Mortality rates were based on the 2011 CalPERS actuarial experience study, which assumed future mortality
improvements using Society of Actuaries (SOA) Scale BB. The Experience Study report can be obtained on the
CalPERS website under Forms and Publications.
18
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 30, 2018
NOTE 6 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Discount Rate
The discount rate used to measure the total OPEB liability was 5.60 percent for the 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 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, the plan’s fiduciary net
position and expected City contributions were projected to be insufficient to make all projected future benefit
payments of current active and inactive employees. Therefore, a blended rate was applied beginning in year 38
using the Bond Buyer 20-bond index rate as of June 30, 2018. Before year 38, the long-term expected rate of
return was used to determine the total OPEB liability. As a result of the crossover, a blended rate of 5.60 percent
was used.
The long-term expected rate of return on 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 OPEB plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target asset allocation and most recent best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Expected Real Rate of
Return
Asset ClassTarget Allocation
Global Equity58.0%4.82%
Fixed Income35.0%1.47%
REITS2.0%3.76%
Cash5.0%0.06%
Total100%
2.75% Assumed Long-Term Rate of Inflation
6.50% Expected Long-Term Rate of Return
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 OPEB liability if it were calculated using
a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% DecreaseDiscount Rate1% Increase
(4.60%)(5.60%)(6.60%)
Net OPEB Liability450,576$ 247,416$ 85,152$
19
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 30, 2018
NOTE 6 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Sensitivity of the Transit Fund’s Proportionate Share of the Net OPEB liability to Changes in the Healthcare Cost
Trend Rates
The following presents the Transit Fund’s proportionate share of the net OPEB liability, as well as what the
Transit Fund’s proportionate share of the net OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend
rates, for measurement period ended June 30, 2018:
Healthcare Trend Rate
1% DecreaseCurrent Rate1% Increase
Net OPEB Liability47,952$ 247,416$ 504,264$
OPEB Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the City’s CAFR.
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 $745,770 for the year ended June 30, 2018.
NOTE 8 – RESTATEMENT
The Transit Fund adopted Governmental Accounting Standards Board (GASB) Statements No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions, and No. 85, Omnibus 2017, effective
July 1, 2017. Refer to Note 7 for further disclosures related to the Plan and related balances. In addition, the City
had restatements in the Transit Fund related to the recognition of Proposition C (MOSIP) revenue and the closing
out of expenditures related to construction in progress in the proper period. As a result, the Transit Fund restated
beginning net position as shown below:
June 30, 2017
Previously July 1, 2017
OPEB Restatement-GASB 75PresentedRestatementRestated
Net Other Postemployment Benefit (OPEB) Liability-$ (265,920)$ (265,920)$
In addition, the Transit Fund restated beginning net position due to the recognition of Proposition C (MOSIP)
revenue and the closing out of expenditures related to construction in progress in the proper period as shown
below:
June 30, 2017
Previously July 1, 2017
PresentedRestated
Transit Recognition of Prior Year Revenue RestatementRestatement
Proposition C (MOSIP) Revenue-$ 584,181$ 584,181$
June 30, 2017
Previously July 1, 2017
PresentedRestated
Transit CIP Addition-Close Out Prior Year ExpendituresRestatement
Capital Assets - Contractual Services-$ 1,656,315$ 1,656,315$
20
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 30, 2018
NOTE 8 – RESTATEMENT (CONTINUED)
The restatements for the Transit Fund impacted beginning net position as noted below:
June 30, 2017
Previously July 1, 2017
PresentedRestated
Effects of RestatementsRestatement
Net Position - Beginning of year$ 78,386,470$ 1,974,576$ 80,361,046
21
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 30, 2018
2017201620152014
Proportion of the collective net pension liability3.51435%3.51419%3.51419%3.51419%
Proportionate share of the collective net pension liability1,641,432$ 1,388,588$ 1,084,341$ 944,480$
Covered payroll1,052,000$ 981,713$ 957,079$ 944,599$
Proportionate Share of the collective net pension liability as a percentage
of covered payroll156.03%141.45%113.30%99.99%
Plan fiduciary net position as a percentage of the total pension
liability74.42%75.27%79.11%80.58%
Note to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore, only three years are shown.
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, and was changed again from 7.65% at the June 30, 2016, measurement date to 7.15% at the June 30, 2017, measurement date.
22
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 PENSION CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 30, 2018
2018201720162015
Actuarially determined contributions 339,564$ 157,588$ 139,129$ 131,436$
Contributions in relation to the actuarially determined contribution(339,564) (157,588) (139,129) (131,436)
Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll1,053,068$ 1,052,000$ 981,713$ 957,079$
Contributions as a percentage of covered payroll32.25%14.98%14.17%13.73%
Note to Schedule:
* Fiscal year 2015 was the first year of implementation, therefore, only four years are shown.
23
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 OPEB LIABILITY
FOR THE YEAR ENDED JUNE 30, 2018
2018*
Transit Fund's proportion of the net OPEB liability247,416$
Transit Fund's proportionate share of the net OPEB liability2.40%
Transit Fund's covered-employee payroll735,216
Transit Fund's proportionate share of the net OPEB liability as a percentage of
its covered-employee payroll33.65%
Plan fiduciary net position as a percentage of the total OPEB liability79.08%
Notes to Schedule:
* Fiscal year 2018 was the first year of implenetation, therefore, only one year is shown.
24
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 OPEB CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 30, 2018
2018*
Contractually determined contribution42,120$
Contributions in relation to the
contractually determined contributions29,448
Contribution deficiency (excess)
$12,672
Covered-employee payroll735,216
Contributions as a percentage of
covered payroll5.73%
Notes to Schedule:
*Fiscal year 2018 was the first year of implenetation, therefore, only one year is shown.
25
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT
SPECIAL REVENUE FUND
Financial and Compliance Report
For the Year Ended June 30, 2018
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
Financial and Compliance Report
For the Year Ended June 30, 2018
Table of Contents
Page
INDEPENDENT AUDITORS’ REPORT ....................................................................................................... 1
BASIC FINANCIAL STATEMENTS
Balance Sheet ......................................................................................................................................... 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 and Related Note to RSI ........................................................................................ 7
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS INCLUDING APPLICABLE PROVISIONS OF 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
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, 2018, 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 auditors’ 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.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Fund of the City as of June 30, 2018, and the changes in financial position for the year then ended,
in accordance with accounting principles generally accepted in the United States of America.
1
10681 Foothill Blvd., Suite 300, Rancho Cucamonga, CA 91730 P 909.466.4410 F 909.466.4431 W vtdcpa.com
Emphasis of 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, 2018, or the changes in its
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 and related note 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 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 27, 2018, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance, as it relates to the Fund of the City.
Rancho Cucamonga, California
December 27, 2018
2
BASIC FINANCIAL STATEMENTS
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
BALANCE SHEET
JUNE 30, 2018
Assets
Pooled cash and investments736,312$
Interest receivable3,142
Due from South Coast Air Quality Management District71,228
Total assets$810,682
Liabilities and fund balance
Liabilities
Accounts payable and accrued liabilities5,075$
Fund Balance
Restricted805,607
Total liabilities and fund balance810,682$
See accompanying notes to financial statements.
3
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 30, 2018
Revenues
Assembly Bill 2766 revenues277,988$
Investment income (loss) (515)
Total revenues 277,473
Expenditures
Administrative 4,616
Air quality improvement program56,457
Total expenditures61,073
Net change in fund balance216,400
Fund balance, beginning of year589,207
Fund balance, end of year805,607$
See accompanying notes to financial statements.
4
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – 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 financial statements reflect the financial position and changes in financial position of the Air
Quality Improvement Special Revenue Fund (Fund) of the City of Santa Clarita, California (City) only. 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.
5
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – 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 CASH AND INVESTMENTS
The Fund’s pooled cash and investments at June 30, 2018 is $736,312.
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 $1 and not fair value. Accordingly, the
inputs used to measure fair value are uncategorized and not defined as Level 1, Level 2, or Level 3. Additional
information regarding interest rate risk, concentration of credit risk, custodial credit risk and fair value
measurements of the City’s pooled cash and investments is presented in the City’s Comprehensive Annual
Financial Report.
NOTE 3 – CONTINGENCIES
The Fund receives monies from the SCAQMD that are subject to review and audit by the SCAQMD. Although
such audits could result in disallowed expenditures under terms of the program’s guidelines, it is believed that any
repayments resulting from disallowances will not be material. Any identified amounts as a result of these audits
would be required to be remitted back to the SCAQMD or having future remittances from the SCAQMD
deducted accordingly.
6
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SANTA CLARITA, CALIFORNIA
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2018
Budgetary Information
The City adopts an annual budget on a basis consistent with accounting principles generally accepted in the
United States of America and utilizes an encumbrance system as a management control technique to assist in
controlling expenditures and enforcing revenue provisions. The appropriated budget is prepared by function and
department. The City’s department heads, with the approval of the City Manager, may make transfers of
appropriations within a department and between functions within a fund. The legal level of budgetary control (i.e.
the level at which expenditures may not legally exceed appropriation) is the category.
The following is the budget comparison schedule for the Fund for the year ended June 30, 2018:
Variance with
Final Budget
Positive
Actual
OriginalFinalAmounts(Negative)
Revenues
Assembly Bill 2766 revenues$ 275,700$ 275,700$ 277,988$ 2,288
Investment income (loss) 3,1253,125(515)(3,640)
Total revenues278,825 278,825277,473(1,352)
Expenditures
Administrative 5,1165,1164,616500
Air quality improvement program348,660 509,61456,457453,157
Total expenditures353,776 514,73061,073453,657
Net change in fund balance
$ (74,951)$ (235,905)216,400$ 452,305
Fund balance, beginning of year589,207
Fund balance, end of year$ 805,607
7
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS, INCLUDING APPLICABLE
PROVISIONS OFASSEMBLY 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, 2018,
and the related notes to the financial statements, and have issued our report thereon dated December 27, 2018.
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.
Adeficiency 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.
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10681 Foothill Blvd., Suite 300, Rancho Cucamonga, CA 91730 P 909.466.4410 F 909.466.4431 W vtdcpa.com
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.
Rancho Cucamonga, California
December 27, 2018
9
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL
REVENUE FUND
Financial Report
For the Year Ended June 30, 2018
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
Financial Report
For the Year Ended June 30, 2018
Table of Contents
Page
INDEPENDENT AUDITORS’ REPORT ................................................................................................. 1
BASIC FINANCIAL STATEMENTS
Balance Sheet ................................................................................................................................... 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 ............................................................................................................... 8
Note to Required Supplementary Information ................................................................................. 9
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, 2018, 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 auditors’ 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.
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10681 Foothill Blvd., Suite 300, Rancho Cucamonga, CA 91730 P 909.466.4410 F 909.466.4431 W vtdcpa.com
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Fund of the City as of June 30, 2018, 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, 2018, and the changes in its
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 and related note on page 8 and 9 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 27, 2018, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Rancho Cucamonga, California
December 27, 2018
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BASIC FINANCIAL STATEMENTS
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
BALANCE SHEET
JUNE 30, 2018
Assets
Pooled cash and investments3,640,232$
Receivables:
Interest15,534
Taxes63,387
Miscellaneous6,666
Total assets$3,725,819
Liabilities and fund balance
Liabilities
Accounts payable and accrued liabilities49,613$
Fund balance
Restricted for Open Space Preservation3,676,206
Total liabilities and fund balance$3,725,819
See notes to financial statements.
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CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2018
Revenues
Special assessments2,556,110$
Investment income11,314
Other revenues135,587
Total revenues 2,703,011
Expenditures
Current:
Open Space Preservation459,071
Capital outlay 2,105,206
Total expenditures 2,564,277
Excess of revenues over (under) expenditures138,734
Other financing sources (uses):
Transfers to other funds of the City of Santa Clarita(908,424)
Net change in fund balance(769,690)
Fund balance, beginning of year 4,445,896
Fund balance, end of year$ 3,676,206
See notes to financial statements.
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CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: On July 17, 2007, the City of Santa Clarita (the City) established the Santa Clarita OpenSpace
Preservation District (the District) pursuant to the provisions of the Landscape and Lighting Act of1972, being
Part 2 of Division 15 of the California Street and Highway Code. The purpose of the District isto 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 byspecial assessments levied on parcels within the City boundaries. The
boundaries of the District are thesame as the boundaries of the City. The City established the Open Space
Preservation District Special Revenue Fund (Fund) to account for theactivities 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 principlesgenerally
accepted in the United States of America (U.S. GAAP). The Fund is presented as a Special Revenue Fund of the
City. The Governmental AccountingStandards Board (GASB) is the acknowledged standard-setting body for
establishing accounting andfinancial reporting standards followed by governmental entities in the United States.
The financialstatements 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 astatement of
revenues, expenditures, and changes in fund balance.
The Fund is accounted for on a spending or “current financial resources” measurement focusand the modified
accrual basis of accounting. Accordingly, only current assets and current liabilities areincluded on the balance
sheet. The statement of revenues, expenditures, and changes in fund balancepresent increases (revenues and
other financing sources) and decreases (expenditures and otherfinancing 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 accountingperiod 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 fiscalperiod, 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 ashare of pooled cash and investments, which
are separately maintained, and interest income wasapportioned based on its average month-end cash balances to
the total of the pooled cash andinvestments.
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CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
Special assessments: Special assessment taxes are attached as enforceable liens on real property onJuly 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 taxesare determined
annually based on property values, subject to limits based on Proposition 13, as ofJanuary 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: In the Fund’s financial statements, fund balance is classifiedas 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 requiresmanagement to make estimates and assumptions. These
estimates and assumptions affect the reportedamounts 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 andassumptions.
NOTE 2 – CASH AND INVESTMENTS
The Fund’s pooled cash and investments at June 30, 2018 was $3,640,232.
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and InvestmentRisk
Disclosures,as they relate to the pooled cash and investments, are reported in the annual report ofthe 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.
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CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 – TRANSFERS TO AND FROM OTHER FUNDS OF THE CITY OF SANTA CLARITA
The Fund made transfers to the City’s Public Financing Authority’s capital project fund of $705,206 for current
year debt service payments for the Lease Revenue Bond Series 2016B. As of June 30, 2018, $13,450,000 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.
The Fund made transfers totaling $203,218 to the City’s General Fund for current year pension.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
OriginalFinalPositive
BudgetBudgetActual(Negative)
Revenues
Special assessments2,563,525$ 2,563,525$ 2,556,110$ (7,415)$
Investment income31,250 31,250 11,314 (19,936)
Charges for services86,655 86,655 135,587 48,932
Total revenues 2,681,4302,681,430 2,703,011 21,581
Expenditures
Current:
Open Space Preservation645,682 582,953 459,071 123,882
Capital Outlay- 3,898,214 2,105,206 1,793,008
Total expenditures 4,481,167645,682 2,564,277 1,916,890
Excess (deficiency) of revenues
over (under) expenditures (1,799,737)2,035,748 138,734 1,938,471
Other financing sources (uses)
Transfers to other funds of the City of Santa Clarita (913,165)(709,947) (908,424) 4,741
Total Other Financing Sources (Uses) (913,165)(709,947) (908,424) 4,741
Net change in fund balance$ (2,712,902)1,325,801$ (769,690) 1,943,212$
Fund balance, beginning of year 4,445,896
Fund balance, end of year$ 3,676,206
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CITY OF SANTA CLARITA, CALIFORNIA
OPEN SPACE PRESERVATION DISTRICT SPECIAL REVENUE FUND
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
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 atfiscal
year-end.
to the
On or before the last day in January of each year, all operational units submit requests for appropriations
city manager for budget preparation purposes. Before April 30, the proposed budget is presented tothe City
Council for review. The City Council holds public hearings and a final budget must be preparedand 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 maynot legally
exceed appropriations) is the category.
Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures arerecorded
to reserve that portion of the applicable appropriation. Encumbrance accounting is employed asan extension of
formal budgetary accounting. Since encumbrances do not yet constitute expenditures orliabilities, encumbrances
outstanding at year-end are reported as restricted fund balance. Unexpendedappropriations lapse at year-end.
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