HomeMy WebLinkAbout2022-01-25 - AGENDA REPORTS - FY 2020 21 ACFRO
Agenda Item: 6
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: 1
DATE: January 25, 2022
SUBJECT: FISCAL YEAR 2020-21 ANNUAL COMPREHENSIVE FINANCIAL
REPORT AND OTHER RELATED REPORTS
DEPARTMENT: Administrative Services
PRESENTER: Carmen Magana
RECOMMENDED ACTION
City Council approve the Annual Comprehensive Financial Report and other related reports for
fiscal year ending June 30, 2021.
BACKGROUND
The City of Santa Clarita's (City) independent audit firm, Eide Bailly, LLP, has completed the
City's annual audit for fiscal year ending June 30, 2021. Eide Bailly, 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 Annual Comprehensive Financial Report (ACFR) reflects the City's strong financial
condition with a healthy General Fund balance.
Based on the audit performed, Eide Bailly, 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 ACFR for fiscal year
ending June 30, 2021.
In accordance with Generally Accepted Auditing Standards (AU-C 260), the Auditor's
Communication with Those Charged with Governance, a Report to the Honorable Mayor and
Members of the City Council, has been prepared by Eide Bailly, LLP, to provide specific
information related to the audit scope and performance.
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Packet Pg. 27
O
hi addition, the following reports were prepared for the fiscal year ending June 30, 2021, by Eide
Bailly, LLP:
Appropriations Limit Calculation
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 by this action.
ATTACHMENTS
Appropriations Limit Calculation 06-30-21 (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)
Annual Comprehensive Financial Report 06-30-2021 (available in City Clerk's Reading File)
Transit Enterprise Fund 06-30-21 (available in the City Clerk's Reading File)
Air Quality Improvement Fund 06-30-21 (available in the City Clerk's Reading File)
Open Space Preservation District 06-30-21 (available in the City Clerk's Reading File)
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Packet Pg. 28
Independent Accountant's Report
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, on the Appropriations Limit Calculation of the
City of Santa Clarita, California (City) prepared in accordance with Article XIII-B of the California
Constitution for the fiscal year ended June 30, 2021. The City's management is responsible for the
Appropriations Limit Calculation.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of assisting the City in evaluating its Appropriations Limit Calculation was performed
as required by Article XIII-B of the California Constitution and we will report on findings based on the
procedures performed. This report may not be suitable for any other purpose. The procedures
performed may not address all the items of interest to a user of this report and may not meet the needs
of all users of this report and, as such, users are responsible for determining whether the procedures
performed are appropriate for their purposes.
The procedures performed and associated findings are as follows:
We obtained the completed worksheets setting forth the calculations necessary to establish the
City's appropriation limit and compared the 2020-2021 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 2020-21 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 agreed 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.
What inspires you, inspires us. eidebailly.com
10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA 91730-3831 T 909.466.4410 F 909.466.4431 EOE
We were engaged by the City to perform this agreed -upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American 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.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed -upon procedures engagement.
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 those specified parties.
Rancho Cucamonga, California
December 23, 2021
A. Appropriations Limit FY 2019-2020
B. Calculation Factors:
1 Population Increase %
2 Inflation Increase %
3 Total Adjustment %
C. Annual Adjustment Increase
D. Other Adjustments:
1 Loss Responsibility (- )
2 Transfer to Private (- )
3 Transfer for Fees (- )
4 Assumed Responsibility ( + )
E. Total Adjustments
F. Appropriations Limit FY 2020-2021
City of Santa Clarita, California
Attachment A — Appropriations Limit Calculations
June 30, 2021
Amount Source
$ 428,431,747 Prior year appropriations limit
adopted by the City
1.00100
State Department of Finance
1.03730
State Department of Finance
1.03834
(13.1 x B.2)
16,424,916
[(B.3-1)xA)]
16,424,916
(C+D)
$ 444,856,663
(A+E)
3
EideBailly.
CPAs & BUSINESS ADVISORS
December 23, 2021
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 City of Santa Clarita, California (City) as of and for the year
ended June 30, 2021, and have issued our reports indicated below thereon dated December 23, 2021:
1. Annual Comprehensive Financial Report (ACFR)
2. Transit Enterprise Fund Standalone Report
3. Air Quality Improvement Fund Standalone Report
4. Open Space Preservation District Report
5. Santa Clarita Watershed Recreation and Conservation Authority Report
We are currently performing the audit of the City's federal award programs (Single Audit) and anticipate
issuing our reports thereon prior to March 31, 2022.
Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards
As communicated in our letter dated May 3, 2021 our responsibility, as described by professional standards,
is to form and express opinions about whether the financial statements that have been prepared by
management with your oversight are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the United States of America. Our audit of the financial statements does not
relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing 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 over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of
determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you. We have provided our report regarding internal controls in our Independent Auditor's
Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit
What inspires you, inspires us. eidebailly.com
10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA 91730-3831 T 909.466.4410 F 909.466.4431 EOE
of the Financial Statements performed in Accordance with Government Auditing Standards dated
December 23, 2021.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the
engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by City is included in Note 1 to the financial statements. On July 1,
2020, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary
Activities, and have restated opening balances as described in Note 23 of the financial statements. No matters
have come to our attention that would require us, under professional standards, to inform you about (1) the
methods used to account for significant unusual transactions and (2) the effect of significant accounting
policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's current judgments. Those judgments are normally based on 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 markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements are management's estimates of
fair value of investments, estimates related to pension and OPEB liabilities, and the related deferred inflows
and outflows of resources, pension and OPEB expense, and disclosures, and estimates of the City's claims and
judgements liabilities
Management's estimate of the fair value of investments is based on observable market inputs and
information from the City's safekeeping custodian banks. Management's estimate of the pension and OPEB
information and claims and judgements liabilities are based on actuarial valuations. We evaluated the key
factors and assumptions used to develop the fair value of investments estimates, and estimate of the
pension, OPEB and claims liabilities and determined that it is reasonable in relation to the basic financial
statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of
their significance to financial statement users. The most sensitive disclosures affecting the City's financial
statements relate to:
Pension liabilities and OPEB asset in Notes 12 and 13, respectively, are sensitive to the underlying
actuarial assumptions used, including, but not limited to, the investment rate of return, discount rate,
and for OPEB, healthcare cost trend rate. As disclosed in Notes 12 and 13, a 1% increase or decrease in
the discount rate, or the healthcare cost trend rate, has a material effect on the City's net pension
liabilities and OPEB asset.
The City's restatement due to the adoption of GASB Statement No. 84 is described in Note 23 to the
financial statements.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the
audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate
them to the appropriate level of management. Further, professional standards require us to also
communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of
transactions, account balances or disclosures, and the financial statements as a whole and each applicable
opinion unit.
The City identified a misstatement, which was brought to our attention. The following summarizes the
uncorrected financial statement misstatements whose effects in the current and prior periods, as determined
by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a
whole and each applicable opinion unit.
Public Financing Authority Debt Service Fund (aggregate remaining fund information):
Overstatement of interest expense of $462 thousand
Understatement of other financing sources of $28 thousand
Understatement of cash of $490 thousand
The effect of these uncorrected misstatements, including the effect of the reversal of prior year uncorrected
misstatements as of and for the year ended June 30, 2021, is an understatement of net change in fund balance
of approximately $490 thousand within the Public Financing Authority Debt Service Fund (aggregate remaining
fund information).
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter,
which could be significant to the City's financial statements or the auditor's report. No such disagreements
arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management which are included in the management
representation letter dated December 23, 2021.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters,
including the application of accounting principles and auditing standards, operating and regulatory conditions
affecting the entity, and operational plans and strategies that may affect the risks of material misstatement.
None of the matters discussed resulted in a condition to our retention as the City's auditors.
Other Information in Documents Containing Audited Financial Statements
Pursuant to professional standards, our responsibility as auditors for other information in documents
containing the City's audited financial statements does not extend beyond the financial information identified
in the audit report, and we are not required to perform any procedures to corroborate such other
information.
However, in accordance with such standards, we will review the information inputted into the data collection
form and will consider whether such information, or the manner of its presentation, is materially consistent with
the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the financial statements.
Modification of the Auditor's Report
We have made the following modification to our auditor's report. We included an emphasis of matter
regarding the adoption of GASB Statement No. 84, Fiduciary Activities, as noted below:
As discussed in Notes 1 and 23 to the financial statements, the City has adopted the provisions of GASB
Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position as of
July 1, 2020. Our opinions are not modified with respect to this matter.
4
Group Audits
The financial statements include the financial activity of the Santa Clarita Public Financing Authority (Authority),
a blended component unit of the City and the OPEB Plan Trust Fund, a fiduciary component unit of the City. For
the purposes of our audit, we do not consider the Authority to be a significant component of the financial
statements but do consider the OPEB Plan Trust Fund to be a significant component. Consistent with the audit
of the financial statements as a whole, our audit included obtaining an understanding of the Authority and OPEB
Plan Trust Fund and its environment, including internal control, sufficient to assess the risks of material
misstatement of the financial statements as it relates to the Authority and OPEB Plan Trust Fund and completion
of further audit procedures.
This report is intended solely for the information and use of the members 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
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City of Santa Cla rita, California
Annual Comprehensive Financial Report
Year Ended June 30, 2021
Prepared by the Finance Division
City of Santa Clarita, California
Table of Contents
June 30, 2021
INTRODUCTORY SECTION
Letterof Transmittal.............................................................................................................................................
i
GFOA Certificate of Achievement for Excellence in Financial Reporting................................................................ix
Officials of the City of Santa Clarita......................................................................................................................
x
OrganizationalChart............................................................................................................................................xi
Map of the City of Santa Clarita..........................................................................................................................xii
FINANCIAL SECTION
IndependentAuditor's Report............................................................................................................................. 1
Management's Discussion and Analysis............................................................................................................... 5
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Position..............................................................................................................................
15
Statementof Activities...................................................................................................................................
18
Fund Financial Statements:
Government Funds Financial Statements:
BalanceSheet................................................................................................................................................
20
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ...........................
23
Statement of Revenues, Expenditures and Changes in Fund Balances............................................................
24
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund
Balances to the Statement of Activities..........................................................................................................
26
Proprietary Funds Financial Statements:
Statementof Net Position..............................................................................................................................
27
Statement of Revenues, Expenses and Changes in Net Position.....................................................................
28
Statementof Cash Flows................................................................................................................................
29
Fiduciary Funds Financial Statements:
Statement of Fiduciary Net Position...............................................................................................................
30
Statement of Changes in Fiduciary Net Position.............................................................................................
31
City of Santa Clarita, California.......................................................................................................................
33
Notes to Financial Statements...........................................................................................................................
33
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual:
GeneralFund.................................................................................................................................................93
Bridge and Thoroughfare Special Revenue Fund............................................................................................
94
Developer Fees Special Revenue Fund...........................................................................................................
95
Public Library Special Revenue Fund..............................................................................................................
96
Landscape Maintenance District #1 Special Revenue Fund.............................................................................
97
Schedule of Changes in the Net OPEB Liability and Related Ratios..................................................................
98
City of Santa Clarita, California
Table of Contents
June 30, 2021
Schedule of Contributions — OPEB.................................................................................................................. 99
Schedule of Money Weighted Rate of Return — OPEB................................................................................... 100
Schedule of Changes in the City's Net Pension Liability and Related Ratios ................................................... 101
Schedule of City Contributions — Pensions.................................................................................................... 102
Notes to Required Supplementary Information............................................................................................ 103
Supplementary Information
Non -major Governmental Funds:
Description of Non -Major Governmental Funds........................................................................................... 105
CombiningBalance Sheet............................................................................................................................. 109
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 117
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual:
Bikeway Special Revenue Fund....................................................................................................................
125
Gas Tax Special Revenue Fund.....................................................................................................................
126
Proposition A Special Revenue Fund............................................................................................................
127
Special Assessment Special Revenue Fund...................................................................................................
128
Street Lighting District Special Revenue Fund...............................................................................................
129
Measure M Local Return Special Revenue Fund...........................................................................................
130
SB1 Road Repair and Activity Special Revenue Fund.....................................................................................
131
State Park Special Revenue Fund.................................................................................................................
132
Transportation Development Act 8 Special Revenue Fund...........................................................................
133
Traffic Safety Special Revenue Fund.............................................................................................................
134
Community Development Block Grant Special Revenue Fund......................................................................
135
Air Quality Management District Special Revenue Fund...............................................................................
136
Stormwater Special Revenue Fund...............................................................................................................
137
Surface Transportation Program Special Revenue Fund...............................................................................
138
BJA Law Enforcement Special Revenue Fund................................................................................................
139
Supplemental Law Grant Special Revenue Fund...........................................................................................
140
HOMESpecial Revenue Fund.......................................................................................................................
141
Library Facilities Fees Special Revenue Fund................................................................................................
142
Public Education and Government Special Revenue Fund............................................................................
143
Proposition C Special Revenue Fund............................................................................................................
144
American Rescue Plan Special Revenue Fund...............................................................................................
145
Federal Grants Special Revenue Fund..........................................................................................................
146
Measure R Special Revenue Fund.................................................................................................................
147
Measure R Highway Improvement Special Revenue Fund............................................................................
148
Measure H Homeless Initiatives Special Revenue Fund................................................................................
149
Measure M ATP Special Revenue Fund........................................................................................................
150
Measure A Safe Parks Special Revenue Fund................................................................................................
151
Measure W Safe Clean Water Special Revenue Fund....................................................................................
152
Tourism Marketing District Special Revenue Fund........................................................................................
153
Open Space Preservation District Special Revenue Fund..............................................................................
154
Miscellaneous Grants Special Revenue Fund................................................................................................
155
Park Dedication Special Revenue Fund.........................................................................................................
156
Housing Successor Agency Special Revenue Fund........................................................................................
157
Tourism Marketing Bureau Special Revenue Fund........................................................................................
158
City of Santa Clarita, California
Table of Contents
June 30, 2021
Areawide Special Revenue Fund..................................................................................................................
159
Cooper Street Parking Structure CFD 2020 Special Revenue Fund................................................................
160
Vista Canyon Wastewater Standby District Special Revenue Fund................................................................
161
General Capital Projects Fund......................................................................................................................
162
Public Financing Authority Capital Projects Fund..........................................................................................
163
Civic Arts Projects Capital Projects Fund.......................................................................................................
164
Public Financing Authority Debt Service Fund..............................................................................................
165
Internal Services Funds:
Description of Internal Service Funds...........................................................................................................
166
Combining Statement of Net Position..........................................................................................................
167
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................................
168
Combining Statement of Cash Flows............................................................................................................
169
Custodial Funds
Description of Custodial Funds.....................................................................................................................
170
Combining Statement of Assets and Liabilities.............................................................................................
171
Combining Statement of Changes in Assets and Liabilities............................................................................
173
STATISTICAL SECTION
NetPosition by Component.........................................................................................................................
177
Changesin Net Position...............................................................................................................................
179
Fund Balances of Governmental Funds........................................................................................................
183
Changes in Fund Balances of Governmental Funds.......................................................................................
185
Assessed Values and Actual Values of Taxable Property...............................................................................
187
Redevelopment Agency Assessed Values and Actual Values of Taxable Property .........................................
189
Assessed Values —Taxable Property.............................................................................................................
191
Assessed Values — Use Category Summary...................................................................................................
193
Direct and Overlapping Property Tax Rates..................................................................................................
194
Principal Property Taxpayers........................................................................................................................
196
Property Tax Levies, Tax Collections and Delinquencies...............................................................................
197
Successor Agency — Property Owners Based on Net Values..........................................................................
198
Successor Agency — Project Assessment Appeals Summary and Tax Collection History .................................
200
Charge Detail Report for CFD 2002-1 (Valencia Town Center)......................................................................
201
Ratio of Outstanding Debt by Type...............................................................................................................
203
Ratio of General Bonded Debt Outstanding.................................................................................................
205
Direct and Overlapping Tax and Assessment Debt........................................................................................
206
Legal Debt Margin Information....................................................................................................................
207
Pledged Revenue Coverage..........................................................................................................................
209
Demographic and Economic Statistics..........................................................................................................
210
PrincipalEmployers.....................................................................................................................................
211
Full -Time and Part -Time City Employees by Function...................................................................................
212
Operating Indicators by Function.................................................................................................................
213
Capital Assets Statistics by Function.............................................................................................................
214
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City of
SANTA CLARITA
23920 Valencia Boulevard • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
www. san ta-clarita. co m
December 23, 2021
Honorable Mayor, Mayor Pro Tem and City Councilmembers:
The Annual Comprehensive Financial Report (ACFR) of the City of Santa Clarita for
fiscal year ended June 30, 2021, is hereby submitted in accordance with Chapter 2.12 of
the City of Santa Clarita Municipal Code. This report provides the City Council and the
public with an understanding of the financial condition of the City.
This report consists of management's representations concerning the finances of the City of
Santa Clarita. As such, management assumes full responsibility for the completeness and
reliability of the information contained in this report. To provide a reasonable basis for
making these representations, management of the City has established a comprehensive
framework of internal controls that are designed to protect the City's assets from loss, theft
or misuse and to compile sufficient reliable information for the preparation of the City's
financial statements. Because the cost of internal controls should not outweigh their
benefits, the City's comprehensive framework of internal controls has been designed to
provide reasonable, rather than absolute, assurance that the financial statements are free
from material misstatement. To the best of our knowledge and belief, the enclosed data is
accurate in all material respects and reported in a manner designed to present fairly the
financial position and results of operations of the various funds of the City of Santa Clarita.
State Law requires the City to prepare an annual financial report. This report fulfills that
obligation. Eide Bailly, LLP, an independent firm of certified public accountants, has
issued an unmodified ("clean") opinion on the financial statements of the City of Santa
Clarita for the year ended June 30, 2021. The independent auditor's report is located at the
front of the financial section of this report. The ACFR has been prepared in conformity
with Generally Accepted Accounting Principles (GAAP) and the financial reporting
requirements prescribed by the Governmental Accounting Standards Board (GASB).
These reporting requirements specify that management provide a narrative introduction,
overview and analysis to accompany the financial statements in the form of a
Management's Discussion and Analysis (MD&A). The MD&A, which immediately
follows the independent auditor's report, complements this letter of transmittal and should
be read in conjunction with it.
Also, as a recipient of federal and state financial assistance, the City is required to have a
Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 2
"Single Audit" performed by our independent audit firm. The Single Audit was designed to
meet the special needs of the federal grantor agencies. The standards governing the Single
Audit engagements require that the independent auditor report on the fair presentation of
the financial statements and the audited government's internal controls and compliance
with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in the City's
separately issued Single Audit Report.
CITY PROFILE
The City of Santa Clarita was incorporated on December 15, 1987, as a General Law City
and operates under a City Council/City Manager form of government. It is located between
the Santa Susana and San Gabriel mountain ranges, approximately 35 miles northwest
from the City of Los Angeles. It is comprised of the communities of Canyon Country,
Newhall, Saugus and Valencia, encompassing approximately 71 square miles. With a
population of 228,673, the City is the third -largest in Los Angeles County and the 18tn
largest in the State of California. Santa Clarita offers an expansive parks and recreation
network, with 35 beautiful park facilities, nearly 12,000 acres of City -owned open space
and 150 miles of trails and paseos designed for commuting and recreational use, including
walking, hiking, biking and skating. The City's unique blend of upscale sophistication with
small-town charm and old -west heritage allows it to accommodate growth while
continuing to provide an excellent quality of life for residents.
The City of Santa Clarita's five City Councilmembers are elected at large to four-year
overlapping terms, with elections held bi-annually. The position of Mayor is annually
selected by the Councilmembers. The City Council is responsible for, among other things,
passing ordinances, adopting the budget, setting policy and appointing committees. The
City Council appoints the City Manager, who is responsible for implementing the policies
of the Council, overseeing the day-to-day operations of City government and for
appointing and managing the various Directors. The City Council also appoints the City
Attorney.
The City provides, either directly or under contract, a full range of municipal services,
including public safety, construction, maintenance of streets and other infrastructure,
public libraries, public works, parks, recreation, community development and cultural
events. The City also provides services through the Santa Clarita Public Financing
Authority (PFA), which is a blended component unit of the City of Santa Clarita. The
financial activities of this entity are included in this report, as its operations are under the
control of the City.
The City operates on a fiscal year basis, which begins July 1, and ends June 30. The City's
Municipal Code requires the City Manager to prepare a budget and present it to the City
Council each year. The budget process begins in January of each year and is carried out
under the direction of the City Manager in cooperation with the various City departments.
The proposed operating and capital budget is submitted by the City Manager to City
Council for adoption by June 30, to take effect at the beginning of the fiscal year on July 1.
Honorable Mayor, Mayor Pro Tem and City Councilmembers
Page 3
Budgetary control for the City is maintained through its accounting systems. Once
adopted, the budget may be amended throughout the year as necessary. Budgetary control
is established at the category level within each fund. The budgetary control for the Capital
Improvement Program (CIP) is at the program level.
LOCAL ECONOMY
The City of Santa Clarita is one of Southern California's most desirable places to live and
do business. City officials pride themselves on the organization's ability to balance the
needs of locally based companies with those of the community, resulting in an unmatched
quality of life.
While the COVID-19 crisis has impacted our community, like all communities, with
residents and businesses being affected, the City of Santa Clarita has worked hard to
position itself for a quick recovery, just as we were able to accomplish during the great
recession. Retail sales have rebounded since the onset of the pandemic, with sales tax
revenues increasing, indicating signs of steady recovery.
This year, The Center at Needham Ranch saw significant progress in industrial and
commercial space development. After more than 20 years in planning and development
since its City Council approval in 2003, Phase 1 is nearing completion with six buildings
finished and a seventh building under construction, providing a total of approximately 1-
million-square-feet. Phase 1 includes Illumination Dynamics, LA North Studios,
DrinkPAK and Amazon as its first tenants. Grading work is nearly complete for Phase 2,
which will total roughly 660,000 additional square feet. The completion of Phase 2 is
anticipated in 2022.
A number of new businesses opened in our community this year in spite of the pandemic,
including Patio Tapatio, One Bite Dumpling, Grocery Bargain Market, XRO Fresh Churro
Bar, Mind Body Fusion, Springhill Suites Valencia, Homewood Suites by Hilton Santa
Clarita, Holiday Inn Express & Suites Santa Clarita, Pops Artisanal Bakery, Monty's
Barber Shop, IronWERQS Gym, Carbon FIT LAB, Laemmle Theatres 6, Papaya, Grit &
Gratitude, The Glasshouse LA, Anthropologie, Salon Works, the Bar Method, C&A Cafe
Creamery, LA North Studios, Illumination Dynamics, El Pollo Loco, WashRun, Windsor,
Undisputed Sole, Stichic, Guanatos Tacos, Teriyaki Rice Express, Crumbl Cookies, Five
Below, and Q Luv. Businesses slated to open later in the year include Crab N Spice, and
Urban Outfitters.
Businesses opening soon in Old Town Newhall include Reyes Winery with a restaurant,
wine processing room, a third -floor tasting room and Hart & Main, a new event venue
space. Businesses opening at Newhall Crossings include Rustic Burger House, Maginn's
Pub, Eat Real Cafe, C'est L'Amour Nail & Spa and Victory Public House.
Commercial vacancy rates continue to experience an increase due to a combination of
pandemic impacts and additional commercial space coming online this year, increasing
additional square footage available and making ample opportunities for more businesses to
Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 4
expand in Santa Clarita. Retail vacancy rates have increased, currently at 5.8 percent,
compared to 4.5 percent in the 2nd Quarter of 2020. Industrial vacancy rates are at 5.2
percent, increasing from 4.7 percent in the 2nd Quarter of 2020. Office space in the City is
currently at an 11.9 percent vacancy rate compared to 9.3 percent in the 2nd Quarter of
2020.
Despite the impacts of COVID-19, the City's Film Office experienced another strong year.
In Fiscal Year 2020-21, the Film Office issued 462 permits, which led to 1,369 film days
and a record $34,717,500 in estimated economic impact. Santa Clarita is home to more
than 40 sound stages, 10 movie ranches and a multitude of film -related businesses. Popular
television shows like "NCIS," "Mayan's MC," "CSI Las Vegas," "Picard," "Good Trouble,"
"Futureman," "Goliath," "Westworld" and "S.W.A.T." were based in Santa Clarita and
regularly filmed on location within the City. Several feature films were filmed in Santa
Clarita, including "Yes Day," "The Little Things," "Space Jam" and "Jackass 4," along
with dozens of national commercial spots and music videos featuring Lady Gaga, Billie
Eilish, T-Pain and Justin Bieber.
Tourism continues to be a significant part of the City of Santa Clarita's economy,
contributing nearly $2.3 million to the general fund from Transient Occupancy Tax (TOT)
in the Fiscal Year 2020-21, despite hotel occupancy being affected by the pandemic. The
Tourism Marketing District (TMD), a collaborative assessment program and partnership
between the City and local hotels, collected over $420,000 in support of increased
marketing and promotion of Santa Clarita as a tourism destination. TMD dollars are a vital
component of the area's continued attraction of events and visitors, translating to dollars
spent in the community and at local businesses. Cancellations due to COVID-19 affected
economic generation from tourism, but when the economy re -opened, the industry
rebounded strongly. The following events were held in Santa Clarita in the last fiscal year:
Presidents' Day Hockey Tournament, Grace Community Church Shepard's Conference,
USA Ultimate (frisbee) and International Slow Pitch Softball. The City also attracted the
Futures Swim Meet through USA Swimming and will welcome the return of high profile,
world -class events, such as the Los Angeles Spartan Race, which will bring over
approximately 16,000 participants and spectators in December 2021.
Santa Clarita recognizes the important role education plays in the success of the
community. The City is home to three premier educational institutions, including the
California Institute of the Arts (CalArts), College of the Canyons and The Master's
University. These colleges offer world -class instruction and programming to prepare
students to become the next generation of business professionals and leaders.
LONG-TERM FINANCIAL PLANNING
Santa Clarita is one of California's model cities, boasting the essential elements needed for
well-balanced living and total well-being. Santa Clarita remains one of the safest cities in
California among cities with populations exceeding 150,000. Santa Clarita is home to a
well-educated population, with nearly 72 percent of adults over age 25 and older having
W
Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 5
attained some college or higher, compared to Los Angeles County, which averages 59
percent.
The City of Santa Clarita has experienced steady growth since its incorporation in 1987.
Even throughout this pandemic, City officials continue to work directly with the private
and public sectors to attract new businesses to the Santa Clarita Valley. The City of Santa
Clarita is focused on retaining existing companies and encouraging their growth within the
City while working to attract new businesses, thereby creating new jobs for
residents. Santa Clarita has set an aggressive goal of creating two jobs for every household,
thereby providing an increased opportunity for residents to work close to home.
The City provides necessary funding for essential services for City Council and
community -identified priorities while taking steps to ensure the City remains in good
financial health. Twice per year, the City prepares extended forecasts for the General Fund
to determine the future impact of current actions. These forecasts indicate a stable General
Fund over the next few years, primarily due to projected marginal increases in sales and
property taxes. Because the City of Santa Clarita has practiced smart growth in prosperous
financial times, the City is well prepared for times when revenue projections do not include
growth.
The City maintains a General Fund balance sufficient to provide for various identified
contingencies, as well as an established operating reserve. In addition, the General Fund
contributes annually to the City's facilities fund, which provides for major maintenance and
replacement of infrastructure and capital improvements. The City's CIP is a component of
the annual budget process that addresses the City's short- and long-term capital needs. Just
as important, the CIP emphasizes a plan of action that effectively maintains the existing
infrastructure to a sound physical standard, as well as providing new facilities to support
current growth and complement new development.
In September 2021, the California State Auditor published a Fiscal Health Analysis of over
420 cities in the State. The City of Santa Clarita was recently ranked in the top seven
percent of fiscally healthy cities. Santa Clarita received a low -risk designation and received
perfect scores in the categories of liquidity, general fund reserves, pension obligations and
other post employment benefit (OPEB) obligations, receiving a total combined score of
92.17.
The City maintains its `AAA' issuer credit rating (ICR) with a "stable" outlook as last
affirmed by Standard & Poor's Global Ratings (S&P) in October 2020. Amid the COVID-
19 pandemic and economic uncertainties, the City was able to demonstrate high levels of
strength in areas of the City's economy, management, budgetary flexibility, liquidity and
institutional framework. This ICR reflects S&P's forward -looking opinion of the City's
overall creditworthiness and the capacity and willingness to meet financial obligations.
v
Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 6
MAJOR MILESTONES IN FISCAL YEAR 2020-2021
❖ The Film Office recorded 462 film permits and 1,369 location film days, generating
an estimated economic impact of nearly $35-million to the local community.
❖ Improving, maintaining and adding to the City's infrastructure and amenities
continues to be a high priority and focus for the City. During Fiscal Year 2020-21,
the City completed the rehabilitation and renaming of the now City -owned ice
facility. The Cube offers three sheets of ice for figure skating, hockey, curling,
speed skating and public skate. The Trek Bike Park of Santa Clarita opened in
September 2020, and new amenities have been added throughout the year.
❖ Two landmark projects in Santa Clarita are complete. The new Canyon Country
Community Center offers nine acres of activity and enrichment, including the
25,000-square-foot building, an event stage, playground, public art and walking
trails. The new Santa Clarita Valley Sheriffs Station is operational and allow the
space and resources our deputies need to best serve the community.
❖ Santa Clarita continues to be hailed as a safe community. Over the last five years,
the Part One crime rate in Santa Clarita has seen an impressive 29.8 percent
decrease. The Traffic Safety Team continues its work to reduce the number of
collisions and injuries seen on Santa Clarita roadways through Education,
Engineering and Enforcement. The City's collision rate dropped 32 percent in 2020
compared to 2019, and total collisions are down nearly 30 percent. DUI collisions
have dropped 30.4 percent compared to 2019, pedestrian and cyclist collisions are
down 36.5 percent and fatalities have been cut in half. Since the City began
gathering statistics in 2001, the collision rate is down 64.9 percent and the injury
rate has decreased by 57 percentSanta Clarita launched the online Volunteer Hub -
a community portal serving as a one -stop -shop for volunteerism in Santa Clarita,
connecting volunteers and local non -profits. The National Association of Volunteer
Programs in Local Government awarded the City of Santa Clarita's Volunteer
Engagement Program the prestigious "Rising to Excellence Award" for their
response to the COVID-19 pandemic and the creation of the Santa Clarita
Volunteer Hub.
❖ The Community Task Force on Homelessness continued implementation of the
Community Plan to Address Homelessness. A major priority was completed with
the City Council's approval of the $1.6 million property transfer to Family Promise
for the development of affordable housing and a resource center.
❖ Santa Clarita completed a connection agreement to lease dark fiber strands, rack
space and power at the One Wilshire Building, and installed and configured all
equipment to light the dark fiber strands from downtown Los Angeles to City Hall.
❖ Construction of the Vista Canyon Multi -Modal Center (train station) began and will
help expand transit service to underserved communities.
vi
Honorable Mayor, Mayor Pro Tem and City Councilmembers
Page 7
AWARDS AND ACKNOWLEDGEMENTS
The City of Santa Clarita continued to receive accolades over the last year. This year Santa
Clarita was named the 4th Most Ambitious City in America by Verizon, was ranked in the
top 10 Safest Cities in the Nation by three national organizations and was recognized as
one of the Happiest and Healthiest Cities in the Nation by WalletHub. This last year
marked the 31 st consecutive year that Santa Clarita was designated as a Tree City USA by
the National Arbor Day Foundation.
Santa Clarita continues to hold the record as the recipient of the most Helen Putnam Award
of Excellence awards from the League of California Cities. Most recent recognitions
include winning the Internal Administration category for the College Internship program
and the Ruth Vreeland Award for Engaging Youth in City Government for the "I Found
Sammy Clarita" campaign.
The popular River Rally Clean up and Environmental Expo was recognized with the
California Parks and Recreation Society's Award of Excellence. The City was also honored
with a 2020 Project of the Year Award from the Southern California Chapter of the
American Public Works Association for the Canyon Country Inclusive Play area project.
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Santa Clarita for its Annual Comprehensive Finance report (ACFR) for the fiscal year
ended June 30, 2020. This was the 32nd consecutive year the City has achieved this
prestigious award. In order to be awarded a Certificate of Achievement for Excellence in
Financial Reporting, a government unit must publish an easily readable and efficiently
organized Annual Comprehensive Financial Report. This report must satisfy GAAP and
applicable legal requirements. A Certificate of Achievement for Excellence in Financial
Reporting is valid for a period of one year only. We believe our current Annual
Comprehensive Financial Report continues to meet the requirements of the GFOA
Certificate of Achievement Program, and we are submitting it to GFOA to determine its
eligibility for another certificate.
The City of Santa Clarita also received an Investment Policy Certificate of Excellence
Award from the Association of Public Treasurers of the United States and Canada for its
Fiscal Year 2021-22 Investment Policy. This year marks the 27th consecutive year that the
City has received the nationally recognized Certificate of Excellence Award from the
Association of Public Treasurers of the United States and Canada for its success in
developing a comprehensive written investment policy. In order to receive certification,
investment policies must be carefully reviewed by the association's Investment Policy
Certification Committee. For a policy to receive certification, it must be approved by all
reviewers on 18 areas spelled out in the Model Investment Policy. This policy includes
elements the Association of Public Treasurers of the United States and Canada deems
essential to a written investment policy such as policy, scope, the delegation of authority,
ethics and conflicts of interest.
In addition, the City was awarded the 26th Annual Achievement of Excellence in
vii
Honorable Mayor, Mayor Pro Tem and City Councilmembers
Page 8
Procurement (AEP) from the National Procurement Institute. This prestigious honor was
awarded in recognition of the City's commitment to purchasing innovation and leadership.
This is the 1 Ph year that the City has received this award in acknowledgment of Santa
Clarita's purchasing policies and practices. The AEP Award is earned by public and non-
profit organizations that obtain a high application score based on standardized criteria. The
City of Santa Clarita's procurement ethics standards, eProcurement practices, and internal
procurement automation received high honors and recognition among judges.
This report is a joint effort by many people from many different areas of responsibility.
The preparation of this report could not have been accomplished without the hard work and
team effort of the staff of the Finance Division, in particular, Finance Manager, Brittany
Houston; Finance Administrator, Mary Ann Ruprecht; Payroll Administrator, Jan Downey;
Sr. Financial Analyst, Alicia Ng; Financial Analyst, Purevsuren Wrinkle; Financial
Analyst, Evangeline Domingo; Financial Analyst, Fabiola Gutierrez. I want to express my
appreciation to all members of the Division who assisted and contributed to its preparation.
I would also like to thank the Mayor; Mayor Pro Tem; Councilmembers; City Manager,
Ken Striplin; Assistant City Manager, Frank Oviedo; Interim Director of Neighborhood
Services, Jerrid McKenna; Director of Public Works, Mike Hennawy; Director of
Recreation and Community Services, Janine Prado; and Director of Community
Development, Tom Cole, for their continuing efforts in administering the financial
operations of the City conservatively and responsibly.
Sincerely,
Carmen Magana
Director of Administrative Services/City Treasurer
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S:\MS\Carrie\Correspondence\Transmittal Letter FY 20.21_docx
VIII
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Clarlita
California
For its C omFT ehensi-Ve Annual
Financial Report
For the Fiscal Year Ended
Rine 30, 2020
Executive DimdonCE0
IX
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2021
City Council
Bill Miranda
MAYOR
Laurene Weste
MAYOR PRO TEM
Jason Gibbs
COUNCILMEMBER
Marsha McLean
COUNCILMEMBER
Cameron Smyth
COUNCILMEMBER
City Officials
Ken Striplin
CITY MANAGER
Frank Oviedo
ASSISTANT CITY MANAGER
Joseph Montes
CITY ATTORNEY
Carmen Magana
DIRECTOR OF ADMINISTRATIVE SERVICES
Tom Cole
DIRECTOR OF COMMUNITY DEVELOPMENT
Jerrid McKenna
INTERIM DIRECTOR OF NEIGHBORHOOD SERVICES
Robert Newman
DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
Janine Prado
DIRECTOR OF RECREATION AND COMMUNITY SERVICES
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ORG.iXLZATIO-N CHART
As of June 30, 2021
Santa Clarita Residents
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City Manager
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Semoes
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Finance
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Environmuental Senaces
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?arts and Events
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Clerk and Contract Senioes
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Parks
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Economic Development
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Recreation and Ccmm mtc Senaces
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Sheriffs Dep utment
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Fife Protection
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XII
Independent Auditor's 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, 2021, 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.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
What inspires you, inspires us. eidebailly.com
10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA 91730-3831 T 909.466.4410 F 909.466.4431 EOE
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, 2021, 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 discussed in Notes 1 and 23 to the financial statements, the City has adopted the provisions of GASB
Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position as of July
1, 2020. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, 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, schedule of changes
in the net OPEB liability and related ratios, schedule of contributions — OPEB, schedule of money
weighted rate of return - OPEB, schedule of changes in the City's net pension liability and related ratios,
and schedule of city contributions — pensions, as listed in the table of contents, 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.
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 23,
2021, 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 23, 2021
3
This page left blank intentionally.
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2021
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, 2021. 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 and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $1.4 billion. Of this amount, $133
million represents unrestricted net position that may be used to meet the City's ongoing obligations
to citizens and creditors. The City's deferred outflows of resources total $26.8 million and deferred
inflows of resources total $32 million.
• The City's total deferred outflows of resources decreased by $6.8 million. The deferred inflows of
resources increased by $24 million. The changes in deferred outflow and inflows were related to
Other Post -Employment Benefits (OPEB) and Pensions (Table 1).
• The City's total net position increased by $111 million. Net position of the business -type activities
increased by $16 million, and the net position of the governmental activities increased by $95
million (Table 1 & 2).
• The net capital assets of the City's governmental activities increased by $84.7 million, or 8.3% over
last fiscal year. The increase was in part due to purchases and contributions of land totaling $30.1
million, and the increase of construction in progress of $55.6 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 $312 million. This represents an increase of $11 million as compared to the prior
year.
• Within governmental funds, the General Fund reported a fund balance of $188 million.
USING THIS ANNUAL REPORT
The financial statements presented herein include all of the activities of the City 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 and deferred outflows of
resources of the City (including infrastructure) as well as all liabilities and deferred inflows of
resources (including long-term debt).
USING THIS ANNUAL REPORT (CONTINUED)
2) Fund Financial Statements
The Fund Financial Statements include statements for each of the three categories of activities:
governmental, proprietary and fiduciary. For governmental activities, these fund statements tell how
these services were financed in the short term, as well as what remains for future spending. Fund
financial statements also report the City's operations in more detail than the government -wide
statements by providing information about the City's most significant funds and other funds.
3) Notes to the Basic Financial Statements
The notes provide additional information necessary to enable the user to fully understand the
various financial statements.
In addition to the basic financial statements and notes, this report contains other supplementary information
REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS
The Statement of Net Position and the Statement of Activities
One of the most important questions asked about the City's finances is, "Is the City as a whole better or
worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities
report information about the City as a whole, and its activities, in a way to answer this question. These
statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar
to the accounting used by most private -sector companies. All of the current year's revenues and expenses
are taken into account, regardless of when cash is received or paid.
The Statement of Net Position reports all of the City's assets and deferred outflows of resources, and
liabilities and deferred inflows of resources, with the difference between the two reported as net position.
Net position is one way to measure the City's financial health or financial position. Over time, increases or
decreases in the City's net position is an indication of whether its financial health is improving or
deteriorating. Other things to consider are non -financial factors, such as changes in the economy due to
external factors that would cause an increase or decrease in consumer spending.
The Statement of Activities presents information relating to how the City's net position changed during the
fiscal year. All activities resulting in changes in net position are reported when earned or incurred,
regardless of the receipt or disbursement of the related transaction's cash flows. Some of the revenues and
expenses reported in this statement will result in future fiscal period cash flows, such as the receipt of
uncollected taxes and the payment of interest expense or compensated absences.
In the Statement of Net Position and the Statement of Activities, we separate the City's activities as follows:
Governmental Activities — Most of the City's basic services are reported in this category, including general
administration (City Manager, City Clerk, Finance, etc.), public safety, public works, 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.
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 46 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 41 governmental funds are combined into a single, aggregated presentation.
Supporting financial information on each of the other governmental funds is also provided within the report.
Proprietary Funds — The City maintains two different types of proprietary funds. When the City charges
customers for the services it provides, these services are generally reported in a type of proprietary fund
known as an enterprise fund. Enterprise funds are used to report the same functions presented as business -
type activities in the government -wide financial statements, but the proprietary fund statements provide
more detail and additional information, such as a statement of cash flows. The City uses the Transit
Enterprise Fund to account for the activities related to transit operations.
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City's various functions. The City uses three internal service funds to account for costs related to self-
insurance, computer replacement and vehicle -equipment replacement.
Proprietary funds are reported in the same way all activities are reported in the Statement of Net Position
and the Statement of Activities. The proprietary fund financial statements provide separate information for
the Transit Enterprise Fund, which is considered to be a major fund of the City. All of the internal service
funds are combined into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is provided in the form of combining statements in the
supplementary information section of this report.
THE CITY AS TRUSTEE — FIDUCIARY FUND STATEMENTS
Reporting the City's Fiduciary Responsibilities
The City is the trustee and custodian, 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 liability, OPEB 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 $111 million, increasing from $1.29 billion to $1.40 billion.
E3
THE CITY AS A WHOLE (CONTINUED)
TABLE 1
CITY OF SANTA CLARITA'S NET POSITION
Governmental. Activities
Business-tgpe.Activities
Total
2021
2020
2021
2020
2021
2020
ASSETS:
Current and Other Assets
$ 377.162.686
$ 326.706,177
$ 10,525.050
$ 920.065
$ 387.687.736
$ 327,706.242
Capital assets, net
1,109,047,265
1,024,352,442
88,023,510
04.371,043
1,197.070,775
1,108,723,485
Noncurrent. Assets
43.320.511
46,136.156
301.813
-
43.622.324
4.6.136.156
TOT.AL.ASSETS
1,529,530,452
1,397.274,775
98,850,373
85,291,100
1.620.380,835
1.402.555.083
DEFERRED OUTFLO1.1JS OF RESOURCES.
25,994,473
32.565,332
805,886
1,020,030
26.800,359
33,587,152
LIABILITIES:
Noncurrent Liabilities
170,050,079
171,899.825
1,326,221
1,847,255
171,376,300
173,747,080
Other Liabilties
47,566,870
38.113,161
2.637,655
5,403,128
50.204,525
4.3,516,289
TOTAL LIABILITIES
217.616.949
210,012,986
3,963,876
7,250,383
221,580,825
217,263,369
DEFERRED INFLOWS OF RESOURCES.
NET POSITION:
Net investment in
capital assets
Restricted
Unrestricted
TOTAL NET POSITION
31,200,601 8,021.685 773,223 218,562 31,073.824 8,240,247
1,032,579.113 984.052,712 88.023,510 00.308,956 1.120.602.623 1,064,361.668
147.556,902 146,874,629 - - 147,556.902 146,874,629
126,571,370 80,879.095 6,896,650 (1,465,963) 133,467.020 79,413,132
1,305,707,385 1,211,805.435 94,919,150 78.842,993 1,401,525.545 1,290,549,429
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, 2021, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $1.4 billion. The largest component of the City's net position, 80%, is represented by its $1.12
billion 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, 10.5% represents resources subject to external restrictions
on how they may be used. The remaining 9.5% of unrestricted net position, $133 million, may be used to
meet the City's ongoing obligations to citizens and creditors. Within the restricted section of net position,
$7 million is related to Sheriff's Station bond proceeds and $2.7 million is related to Vista Canyon Transit
Center bond proceeds.
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 consistent with prior years. Net position for governmental
activities increased by $95 million over the prior year. The unrestricted net position of the business -type
activities increased by $8.4 million.
WE
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities increased by $34.2 million. The cost of all governmental activities
this year was $169.7 million, a decrease of 6.13% over the past year. As shown in the Statement of
Activities, the governmental activities expenses were ultimately financed in part by the taxpayers, as $63.8
million in revenues were generated by service revenues received from the performance of these activities;
another $44.5 million was received from government agencies and other organizations that subsidized
certain programs with operating grants and contributions; and another $42.8 million in revenues was
generated from capital grants and contributions. Of the $22.5 million increase in the operating grants and
contributions, $9.6 million was from the American Rescue Plan Act of 2021 and $7 million was from the
Emergency Rental Assistance Program. Overall, the City's governmental program and general revenues
amounted to $264 million, which funded the expenses and resulted in a $95 million increase in net position.
TABLE 2
CITY OF SANTA CLARITA'S CHANGES IN NET POSITION
Governmental Activities
Business type Activities
Total
2021
2020
2021
2020
2021
2020
Program Revenues:
Charges for services
$ 63,758,091
$ 57,665,088
$ 5,799,364
$ 6,785,178
$ 69,557,455
$ 64,450,266
Operating grants and contributions
44,524,768
22,066,816
29,444,844
13,405,112
73,969,612
35,471,928
Capital grants and contributions
42,849,916
41,462,296
9,036,527
5,701,142
51,886,443
47,163,438
General Revenues:
Taxes:
Property taxes
52,981,738
46,420,350
52,981,738
46,420,350
Other taxes
57,150,510
49,577,480
57,150,510
49,577,480
Other
2,946,239
12,785,744
41,855
(9,629)
2,988,094
12,776,115
Total Revenues
264,211,262
229,977,774
44,322,590
25,881,803
308,533,852
255,859,577
General government
51,594,712
54,710,526
-
-
51,594,712
54,710,526
Public safety
35,128,997
29,907,832
-
-
35,128,997
29,907,832
Recreation and community services
17,239,899
16,047,345
-
-
17,239,899
16,047,345
Public works
15,107,049
33,663,857
-
-
15,107,049
33,663,857
Community development
11,435,676
8,942,864
-
-
11,435,676
8,942,864
Neighborhood Services
13,865,065
12,862,529
-
-
13,865,065
12,862,529
Unallocated infrastructure depreciation
21,543,801
21,043,711
-
-
21,543,801
21,043,711
Interest and fiscal charges
3,742,582
3,549,649
-
-
3,742,582
3,549,649
Transit
27,898,955
31,060,676
27,898,955
31,060,676
Total Expenses
169,657,781
180,728,313
27,898,955
31,060,676
197,556,736
211,788,989
Increase/Decrease in Net Postion Before Transfers
94,553,481
49,249,461
16,423,635
(57178,873)
110,977,116
44,070,588
Transfers
347,468
153,690
(347,468)
(153,690)
Changes in Net Position
94,900,949
47403,151
16,076,167
(5,332,563)
110,977,116
44,070,588
Net Position— Beginning of Year
1.211,806,436
1,162,403,285
78,842,993
84,175,556
1,290,649,429
1,246,578,841
Net Position — End of Year
$ 1,306,707,385
$ 1,211,806,436
$ 94,919,160
$ 78,842,993
$ 1,401,626,545
$ 1,290,649,429
Business -Type Activities
Business -type activities increased the City's net position by $16 million for the current year. Business -type
activities revenues increased by $18.4 million during the year for a total of $44.3 million in revenues,
excluding transfers in from governmental activities. The increased revenue was largely due to an increase
in operating grants and contributions of $16 million. Related transit activity expenses decreased by $3.2
million.
10
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $312
million, an increase of $11 million over the prior year. Approximately $133 million is restricted and already
reserved for specific restricted purposes.
The total governmental fund balance includes the general fund balance of $188 million. The General Fund
is the chief operating fund of the City. The unassigned fund balance of $60 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 $3.7 million in its fund balance from
prior year. The increase included $3.1 million developer fees revenue from the Bouquet Canyon
project areas.
• The Developer Fee Fund has realized a decrease of $3.4 million in its fund balance from the prior
year. The decrease is attributed to expending $2 million for the construction of the City's new
Sheriff's Station.
• The Public Library Fund realized an increase of $2.5 million in its fund balance as a result of
increasing property tax revenue.
• The Landscape Maintenance District's fund balance decreased by $1.5 million from the prior year
due to various capital projects, including $1.2 million for the Mountain View Park Play Area and
Shade Structure project.
In addition to the major funds, the fund balances for the other governmental funds experienced an
aggregate increase of $12 million. The increase included $9.6 million in grant funds from the American
Rescue Plan Act of 2021.
The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail. The total net position for the Transit Enterprise Fund increased over the prior
year by $16 million. The increase was mainly due to $18 million in funding from the CARES Act. The
unrestricted portion of the business -type activities net position increased by $8.4 million from the prior year.
The Internal Service Funds net position decreased by $583,146 or 5.6%. The ending fund balance for
Internal Service Funds is $9.7 million, of which $7.8 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2020-2021 original (adopted) general fund budgeted expenditures and
transfers of $116.4 million to the final budgeted expenditures of $193.4 million results in a net increase of
$77.1 million.
Included in this net increase is $11,642,615 committed purchase orders and contracts from the prior June
30 balance, as well as $1,230,417 of prior fiscal year operating and capital improvement projects approved
for carryover into fiscal year 2020-2021.
11
THE CITY'S FUNDS (CONTINUED)
Original Budget Continued Encumbrances Beg. Balance + Supplemental Final Budget
+ Appropriations + = Changes =
$105,686,945 + $1,230,417+ $11,642,615 = $118,559,977+ $ 57,572,524 = $176,132,501
Comparing the beginning budget of $119 million with the final budget of $176 million indicates the General
Fund had supplemental budgetary appropriations of $58 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 $19.8 million,
inclusive of transfers in. Included in the increase is $3.9 million and $200,000 in sales tax and property
tax respectively, $803,858 loan repayment from the Successor Agency, $450,000 transfer in from
Coronavirus Aid, Relief, and Economic Security (CARES) Act Corona Relief Fund (CRF) grant for the
reimbursement of unemployment claims payments, and a net increase of $135,361 in development
revenues as a result of increased permitting activities. It also included decreases in code fines for
$350,000, a result of reduced parking enforcement efforts and waivers due to COVID-19 economic
challenges, $560,000 in transient and occupancy tax revenue attributed to the coronavirus impact to the
hotel industry, and $2.9 million in recreation programming revenue due to COVID-19 restrictions. In
addition, an increase of $14.2 million was included to account for recreational ice rink facility bond
proceeds, and a $1.4 million Los Angeles County Flood Control District contribution for improvements to
the Mint Canyon Channel and storm drains in coordination with the City's Canyon Country Community
Center project.
At year-end, the City's actual general fund revenues were $422,859 more than the final budgetary
estimates. Actual general fund expenditures were less than the final budgetary estimates by $29 million,
which is due to operational savings and capital projects carried forward to the next fiscal year.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City had $1.1 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 Activities
Business Type
Activities
Total
2021
2020
2021
2020
2021
2020
Land
$ 263,001,440
$ 232,854.321
$15,087,880
$ 15.087,880
$ 278,089,320
$ 247.942.201
Construction in progress
134.762,286
79,137.952
10.328,640
5,570,040
145.090.926
84.707.992
Infrastructure. net
632.023.372
631,237,761
-
-
632.023.372
631,237,761
Depreciable site improvements, net
27,819,275
28,313,196
7,404,801
7.973.022
35224,076
36,286,218
Depreciable building and
improvements. net
46,127,995
47,475,118
26,190,090
26.908.026
72.318,085
74,383,144
Depreciable equipment, net
5,312,897
5,334,104
29.012.099
28.832,076
34.324,996
34,166,179
TOTALS
1,109,047,265
1,024,362.442
88.023.510
84.371,043
1.197.070.775
1,108,723..485
12
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Major capital asset events during the year included:
• Acquisitions and contributions of land totaling $30.1 million
• Construction in progress additions totaling $60.4 million.
• Infrastructure additions totaling $785,621
Additional information on the City of Santa Clarita's capital assets can be located in Note 6 to the financial
statements
Debt Administration
At year-end, the City's total debt amounted to $89.3 million in bonds, notes, capital leases, 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
Revenue and Taxable Revenue Bonds
Lease Revenue Bonds
Contract and Capital Leases
Private Placement Lease
Compensated absences
Claims Payable
TOTAL
Governmental Activities
2021 2020
14 ,461.752
14 ,796 ,697
63,414.068
50,288,999
542.094
497,683
-
730,371
4,313.253
4,144,357
6,410.646
4,901 ,109
89,141.813
75,359,116
Business -type Activities
2021 2020
141,669 118.877
141,669 118.877
Total
2021 2020
14.461.752 14 ,796 ,697
63.414.068 50,288,999
542.094 497,583
- 730,371
4.464.922 4,263,234
6.410.646 4,901 ,109
69.263.482 76,477,993
The City's governmental activities had $89.1 million in debt at year-end. Governmental activities long-term
debt increased overall by $13.8 million.
No new debt related to business -type activities was issued or refinanced during the current fiscal year.
The City continues to monitor the potential impacts of the COVID-19 pandemic on revenues and
expenditures and budget adjustments will be made as needed between December and the end of the fiscal
year.
During the fiscal year ended June 30, 2021, 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, 2021 was
$1,386,877,966. 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.
13
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 one of the largest revenue source to operate
general governmental functions, accounting for 33% or $39 million as projected in the 2021-2022
budget.
• Property tax revenues account for 34% of the General Fund budget or $41 million in 2021-2022.
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 $119.7 million, resulting in a balanced budget, an
operating surplus of $318,032, and a 20% operating reserve of $18.8 million. The City's 2021-2022
operating and capital budget for all funds is $248.3 million, net of transfers.
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 2021-2022 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
2021-2022 budget can be obtained by visiting the web at http://www.santa-clarita.com/city-
hal I/departments/city-manager-s-office/city-budget.
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
request for additional information should be addressed to the City Clerk, City of Santa Clarita, 23920
Valencia Blvd., Santa Clarita, California 91355.
14
City of Santa Clarita, California
Statement of Net Position
June 30, 2021
Governmental
Business -type
Activities
Activities
Total
Assets
Current Assets
Cash and investments
$ 341,497,366
$ 3,912,296
$ 345,409,662
Receivables:
Accounts, net
774,682
1,301
775,983
Interest
660,584
7,389
667,973
Taxes
16,825,368
-
16,825,368
Prepaid costs
895,299
18,235
913,534
Due from other governments
16,509,387
6,585,829
23,095,216
Total current assets
377,162,686
10,525,050
387,687,736
Noncurrent Assets
Restricted assets
Cash and investments
2,073,153
-
2,073,153
Cash and investments with fiscal agents
10,255,231
10,255,231
Loans receivable
2,513,174
2,513,174
Desposits with others
60,000
60,000
Notes to RDA Successor Agency
16,144,988
-
16,144,988
Net OPEB asset
12,273,965
301,813
12,575,778
Capital assets
Nondepreciable assets
397,763,726
25,416,520
423,180,246
Depreciable assets, net
711,283,539
62,606,990
773,890,529
Total noncurrent assets
1,152,367,776
88,325,323
1,240,693,099
Total assets
1,529,530,462
98,850,373
1,628,380,835
Deferred Outflows of Resources
Deferred outflows related to OPEB
7,787,445
191,495
7,978,940
Deferred outflows related to pensions
16,867,923
614,391
17,482,314
Unamortized loss on refundings
1,339,105
-
1,339,105
Total deferred outflows of resources
25,994,473
805,886
26,800,359
Liabilities
Current liabilities
Accounts payable and accrued liabilities
27,523,139
2,601,398
30,124,537
Interest payable
403,308
-
403,308
Deposits payable
3,141,882
3,141,882
Due to other governments
7,734,479
7,734,479
Unearned revenues
519,787
-
519,787
Compensated absences
1,996,898
36,257
2,033,155
Claims and judgments
3,974,601
-
3,974,601
Bonds, loans and capital leases
2,272,776
-
2,272,776
Total current liabilities
47,566,870
2,637,655
50,204,525
Noncurrent liabilities
Compensated absences
2,316,355
105,412
2,421,767
Claims and judgments
2,436,045
-
2,436,045
Bonds, loans and capital leases
76,145,138
76,145,138
Developer credits
55,635,573
-
55,635,573
Net pension liability
33,516,968
1,220,809
34,737,777
Total noncurrent liabilities
170,050,079
1,326,221
171,376,300
Total liabilities
217,616,949
3,963,876
221,580,825
Deferred Inflows of Resources
Deferred inflows related to OPEB
30,693,803
754,765
31,448,568
Deferred inflows related to pensions
506,798
18,458
525,256
Total deferred inflows of resources
31,200,601
773,223
31,973,824
See Notes to Financial Statements 15
This page left blank intentionally.
See Notes to Financial Statements 16
City of Santa Clarita, California
Statement of Net Position (Continued)
June 30, 2021
Governmental
Business -type
Activities
Activities
Total
Net Position
Net investment in capital assets
$ 1,032,579,113
$ 88,023,510
$ 1,120,602,623
Restricted
Landscape maintenance
30,992,621
-
30,992,621
Lighting district
14,192,379
14,192,379
Transportation
43,681,203
43,681,203
Open space preservation
6,578,028
6,578,028
Public safety
1,337,165
1,337,165
Public library
5,395,240
5,395,240
Air quality improvement
178,378
178,378
Stormwater
5,388,016
5,388,016
Public education and government
604,329
604,329
Tourism marketing
542,936
542,936
Low and moderate -income housing
4,292,288
4,292,288
Capital improvements
24,729,745
24,729,745
Bond proceeds
9,644,574
-
9,644,574
Unrestricted
126,571,370
6,895,650
133,467,020
Total net position
$ 1,306,707,385
$ 94,919,160
$ 1,401,626,545
See Notes to Financial Statements 17
City of Santa Clarita, California
Statement of Activities
For the Fiscal Year Ended June 30, 2021
Program Revenues
Operating Capital
Charges for Contributions Contributions
Function/Programs Expenses Services and Grants and Grants
Governmental activities:
General government
Public safety
Recreation and community services
Public works
Community development
Neighborhood services
Unallocated infrastructure depreciation
Interest and fiscal charges
Total governmental activities
Business -type activities:
Transit enterprise
Total business -type activities
Total primary government
$ 51,594,712 $
9,254,707 $
35,128,997
1,303,759
17,239,899
3,627,549
15,107,049
16,419,310
11,435,676
1,899,854
13,865,065
31,252,912
21, 543, 801
-
3,742,582
-
4,031,343 $ -
623,225 3,287,378
- 363,660
38,112,907 39,198,878
907,111 -
850,182 -
169,657,781 63,758,091 44,524,768 42,849,916
27,898,955 5,799,364 29,444,844 9,036,527
27,898,955 5,799,364 29,444,844 9,036,527
$ 197,556,736 $ 69,557,455 $ 73,969,612 $ 51,886,443
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
Total general revenues
Transfers
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
See Notes to Financial Statements 18
City of Santa Clarita, California
Statement of Activities (Continued)
For the Fiscal Year Ended June 30, 2021
Net (Expense) Revenues and
Changes in Net Position
Governmental Business -type
Activities Activities Total
$ (38,308,662) $
- $ (38,308,662)
(29,914,635)
- (29,914,635)
(13,248,690)
- (13,248,690)
78,624,046
- 78,624,046
(8,628,711)
- (8,628,711)
18,238,029
- 18,238,029
(21,543,801)
- (21,543,801)
(3,742,582)
- (3,742,582)
(18,525,006) - (18,525,006)
- 16,381,780 16,381,780
- 16,381,780 16,381,780
(18,525,006) 16,381,780 (2,143,226)
52,981,738
- 52,981,738
43,197,889
- 43,197,889
9,493,742
- 9,493,742
2,275,383
- 2,275,383
2,010,033
- 2,010,033
173,463
- 173,463
634,957
41,855 676,812
2,311,282
- 2,311,282
113,078,487
41,855 113,120,342
347,468
(347,468) -
94, 900, 949 16,076,167 110,977,116
1,211,806,436 78,842,993 1,290,649,429
$ 1,306,707,385 $ 94,919,160 $ 1,401,626,545
See Notes to Financial Statements 19
Assets
Cash and investments
Receivables
Accounts, net
Interest
Taxes
Loans
Notes to RDA Successor Agency
Prepaid costs
Due from other governments
Due from other funds
Advances to other funds
Deposits with others
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficit)
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other governments
Unearned revenues
Due to other funds
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenues
Fund Balances (Deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflows of
of resources and fund balances (deficit)
City of Santa Clarita, California
Balance Sheet
Governmental Funds
June 30, 2021
Special Revenue
Funds
Bridge and
Developer
General Fund
Thoroughfare
Fees
$ 178,159,980
$ 14,067,007 $
8,625,164
533,530
-
-
349,271
30,740
18,255
12,431,517
-
-
110,000
-
-
8,914,740
-
7,230,248
391,738
-
-
202,153
-
-
4,580,961
-
-
8,023,848
-
131,695
60,000
-
-
9,644,574
-
-
$ 223,402,312 $ 14,097,747 $ 16,005,362
$ 14,116,987
3,141,882
7,700,000
519,787
25,478,656
$ 316,965
6,411,163
$ 6,207,096
9,929,517 - 7,361,943
7,474,892 - -
9,644,574 7,369,619 2,394,047
- - 832
110,906,093 - 41,444
59,968,580 - -
187,994,139 7,369,619 2,436,323
$ 223,402,312 $ 14,097,747 $ 16,005,362
See Notes to Financial Statements 20
City of Santa Clarita, California
Balance Sheet (Continued)
Governmental Funds
June 30, 2021
Special Revenue Funds
Landscape
Non -major
Total
Public
Maintenance
Governmental
Governmental
Library
District #1
Funds
Funds
$ 3,107,377
$ 23,651,092
$ 99,487,172
$ 327,097,792
53,547
11,525
176,080
774,682
5,762
48,549
183,105
635,682
249,256
209,423
3,935,172
16,825,368
-
-
2,403,174
2,513,174
-
-
-
16,144,988
112,800
281,324
97,380
883,242
-
-
16,307,234
16,509,387
-
-
-
4,580,961
-
-
-
8,155,543
-
-
-
60,000
-
-
2,073,153
2,073,153
-
-
610,657
10,255,231
$ 3,528,742
$ 24,201,913
$ 125,273,127
$ 406,509,203
$ 149,207
$ 973,606
$ 5,702,814
$ 27,466,675
-
-
-
3,141,882
-
-
34,479
7,734,479
-
-
-
519,787
-
-
4,580,961
4,580,961
1,744,380
-
-
8,155,543
1,893,587
973,606
10,318,254
51,599,327
-
-
25,632,148
42,923,608
112,800
281,324
97,380
7,966,396
1,522,355
22,946,983
89,381,418
133,258,996
-
-
-
832
-
-
713,730
111,661,267
-
-
(869,803)
59,098,777
1,635,155
23,228,307
- 89,322,725
311,986,268
$ 3,528,742
$ 24,201,913
$ 125,273,127
$ 406,509,203
See Notes to Financial Statements 21
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22
City of Santa Clarita, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
Fund balances of governmental funds
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
Depreciable assets, net of accumulated depreciation
Revenues reported as deferred inflows in the governmental funds
do not provide current financial resources but are
recognized in the Statement of Activities
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
Deferred outflows of resources related to pensions
Deferred inflows of resources related to pensions
Net OPEB asset
Deferred outflows of resources related to OPEB
Deferred inflows of resources related to OPEB
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
Capital leases
Deferred outflow of resources related to loss on refunding
Compensated absences
Bridge and Thoroughfare developer payables
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.
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.
Net Position of Governmental Activities
$ 397,763,726
709,380,258
(33,389,386)
16,803,716
(504,869)
12,236,239
7,763,508
(30,599,457)
(77,875,820)
(542,094)
1,339,105
(4,287,068)
(55,635,573)
June 30, 2021
$ 311,986,268
1,107,143,984
42,923,608
(27,690,249)
(137,001,450)
(403,308)
9,748,532
$ 1,306,707,385
See Notes to Financial Statements 23
Revenues
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Recreation and community service
Public works
Community development
Neighborhood services
Administration and personnel services
Capital outlay
Debt service
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Bonds issued
Capital leases acquired
Premium on bonds issued
Transfers in
Transfers out
Total other financing sources (uses)
Net Change In Fund Balances
Fund Balances (Deficit), Beginning Of Year
Fund Balances (Deficit), End Of Year
City of Santa Clarita, California
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2021
General
Special Revenue Funds
Bridge and Developer
Thoroughfare Fees
$ 97,704,484
$ - $ -
11,498,980
- -
270,827
- -
6,345,677
- -
128,498
395,138 37,723
621,214
- -
-
5,435,844 3,534,195
1,359,092
368,724 -
117,928,772
6,199,706 3,571,918
17,962,178 600 -
28,378,605 - 6,606,531
13,567,831 - 258,909
51,655,008 558,442 65,498
6,553,126 - -
67,889 - -
14,904,104 1,496,432 -
- 449,841 -
133,088,741 2,505,315 6,930,938
(15,159,969)
3,694,391
(3,359,020)
164,970
-
-
26,626,984
-
-
(14,079,083)
-
(69,458)
12,712,871
-
(69,458)
(2,447,098)
3,694,391
(3,428,478)
190,441,237
3,675,228
5,864,801
$ 187,994,139 $
7,369,619
$ 2,436,323
See Notes to Financial Statements 24
City of Santa Clarita, California
Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Governmental Funds
For the Fiscal Year Ended June 30, 2021
Special Revenue Funds
Landscape
Non -major
Total
Public
Maintenance
Governmental
Governmental
Library
District #1
Funds
Funds
$ 8,561,137
$ 261,281 $
3,605,346
$ 110,132,248
-
13,680,862
21,954,118
35,634,980
-
-
-
11,498,980
-
-
42,787,888
43,058,715
93,786
-
509,912
6,949,375
2,770
(25,964)
126,410
664,575
-
-
1,081,408
1,702,622
-
-
2,124,273
11,094,312
144,556
-
12,112,428
13,984,800
8,802,249
13,916,179
84,301,783
234,720,607
6,231,428
12,094,800
9,771,915
46,060,921
-
-
585,485
35,570,621
-
1,090,990
-
14,917,730
-
357,020
37,680,110
90,316,078
-
-
5,003,251
11,556,377
140,919
1,605,715
12,139, 344
13, 885, 978
-
-
67,889
2,156
-
4,300,006
20,702,698
-
-
2,315,371
2,315,371
60,936
-
2,852,848
3,363,625
-
-
278,843
278,843
6,435,439
15,148,525
74,927,173
239,036,131
2,366,810
(1,232,346)
9,374,610
(4,315,524)
-
-
14,270,000
14,270,000
-
-
-
164,970
-
-
225,409
225,409
98,500
10,000
16,440,441
43,175,925
-
(275,935)
(28,431,035)
(42,855,511)
98,500
(265,935)
2,504,815
14,980,793
2,465,310
(1,498,281)
11,879,425
10,665,269
(830,155)
24,726,588
77,443,300
301,320,999
$ 1,635,155
$ 23,228,307 $
89,322,725
$ 311,986,268
See Notes to Financial Statements 25
City of Santa Clarita, California
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances
Net changes in fund balances - total governmental funds
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.
Net effect of various transactions involving capital assets (i.e. sales, retirements)
Capital contributions
Depreciation expense
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the governmental funds.
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 absences
Bond proceeds
Premium on bonds issued
Lease revenue bonds
Private placement lease payable
Capital leases
Interest and fiscal charges
Amortization of premiums of long-term liabilities
The issuance of Bridge and Thoroughfare district credits does not impact governmental funds,
but increases long-term liabilities in the statement of net position. Redemptions
of district credits does not impact expenditures in the governmental funds,
but reduces long-term liabilities in the statement of net position.
Net impact of issuance and redemption of district credits
Redemption of district credits
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
Changes in net OPEB liability and related deferred inflows and outflows of resources
Changes in net pension liabilities and related deferred inflows and outflows of resources
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.
Change in net position of governmental activities
to the Statement of Activities
For the Year Ended June 30, 2021
$ 95,210,326
15,000,000
(25,644,465)
(166,880)
(14,270,000)
(225,409)
1,585,000
730,371
(44,511)
(91,645)
120,285
(84,243)
2,281,629
618,369
$ 10,665,269
84,565,861
15,809,466
(12,362,789)
(6,009,467)
2,815,755
(583,146)
$ 94,900,949
See Notes to Financial Statements 26
Assets
Current assets
Cash and investments
Receivables
Accounts
Interest
Prepaid costs
Due from other governments
Total current assets
Noncurrent assets
Net OPEB asset
Capital assets
Land and construction in progress
Site improvements, net of accumulated depreciation
Building and improvements, net of accumulated depreciation
Equipment, net of accumulated depreciation
Total noncurrent assets
Total assets
Deferred outflows of resources
Deferred outflows related to OPEB
Deferred outflows related to pensions
Total deferred outflows of resources
Liabilities
Current liabilities
Accounts payable and accrued liabilities
Compensated absences
Claims and judgements
Total current liabilities
Noncurrent liabilities
Compensated absences payable
Claims and judgments
Net pension liability
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources
Deferred inflows related to OPEB
Deferred inflows related to pensions
Total deferred inflows of resources
Net Position
Net investment in capital assets
Unrestricted
Total net position
City of Santa Clarita, California
Statement of Net Position
Proprietary Funds
June 30, 2021
Business -type
Activities
Transit
Enterprise
$ 3,912,296
1,301
7,389
18,235
6,585,829
10,525,050
301,813
25,416,520
7,404,801
26,190,090
29,012,099
88,325,323
98,850,373
191,495
614,391
805,886
2,601,398
36,257
Governmental
Activities
Internal
Service Funds
$ 14,399,574
24,902
12,057
14,436,533
37,726
1,903,281
1,941,007
16,377,540
23,937
64,207
88,144
56,464
12,123
3,974,601
2,637,655 4,043,188
105,412
1,220,809
1,326,221
3,963,876
754,765
18,458
773,223
88,023,510
6,895,650
$ 94,919,160
14,062
2,436,045
127,582
2,577,689
6,620,877
94,346
1,929
96, 275
1,903,281
7,845,251
$ 9,748,532
See Notes to Financial Statements 27
City of Santa Clarita, California
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2021
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
Operating revenues
Charges for services
$ 3,877,529
$ 4,720,275
Other revenues
1,921,835
-
Total operating revenues
5,799,364
4,720,275
Operating expenses
Administration and personnel services
2,690,305
1,376,263
Transportation services
16,579,353
-
Services and supplies
2,990,913
3,559,073
Depreciation expense
5,662,334
365,520
Total operating expenses
27,922,905
5,300,856
Operating income (loss)
(22,123,541)
(580,581)
Nonoperating revenues (expenses)
Intergovernmental revenue 29,444,844 -
Investment income (loss) 41,855 (29,619)
Gain (loss) on disposal of capital assets 23,950 -
Total nonoperating revenues (expenses) 29,510,649 (29,619)
Income (loss) before transfers and capital contributions 71387,108 (610,200)
Transfers and capital contributions
Transfers in - 65,130
Transfers out (347,468) (38,076)
Capital contributions 9,036,527 -
Total transfers and capital contributions 8,689,059 27,054
Change in net position 16,076,167 (583,146)
Net position
Net position, beginning of year 78,842,993 10,331,678
Net position, end of year $ 94,919,160 $ 9,748,532
See Notes to Financial Statements 28
Operating Activities
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from other sources
Net Cash Provided By (Used In) Operating Activities
Noncapital Financing Activities
Cash transfers out
Cash transfers in
Federal and state funding received
Net Cash (Used In) Provided By Noncapital Financing Activities
Capital And Related Financing Activities
Capital contributions
Acquisition of capital assets
Net Cash Provided (Used) For Capital And Related Financing Activities
Investing Activities
Interest received (paid)
Net Increase/(Decrease) In Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of The Year
Cash and Cash Equivalents at End of Year
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provide by (used in) operating activities
Depreciation
(Increase)/Decrease in accounts receivable
(Increase)/Decrease in prepaid expense
Change in deferred amounts related to OPEB
Change in net OPEB liability
Change in deferred amounts related to pensions
Change in net pension liability
Increase/(Decrease) in accounts payable
Increase in claims and judgments
Increase in compensated absences
Total Adjustments
Net Cash Provided By (Used In) Operating Activities
City of Santa Clarita, California, California
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
$ 3,877,537 $ 4,720,275
(22,320,281) (2,376,798)
(2,746,402) (1,383,598)
1,921,835 -
(19,267,311) 959,879
(4,269,242) (38,076)
- 65,130
27,668,608 -
23,399,366 27,054
9,036,527 -
(9,290,852) (494,482)
(254,325) (494,482)
34,466 (10,344)
3,912,196 482,107
100 13,917,467
$ 3,912,296 $ 14,399,574
$ (22,123,541) $ (580,581)
5,662,334
8
12,606
645,611
(701,890)
123,994
(146,604)
(2,762,621)
22,792
2,856,230
$ (19,267,311)
365,520
(12,057)
80,702
(87,736)
12,959
(15,321)
(315,157)
1,509,535
2,015
1,540,460
$ 959,879
See Notes to Financial Statements 29
Assets
Cash and investments
Receivables
Interest
Contributions
Prepaid costs
Due from other governments
Cash and investments
Cash and investments held with PARS
Cash and investments with fiscal agents
Total assets
Deferred Outflows of Resources
Unamortized loss on refunding
Liabilities
Accounts payable
Due to other governments
Interest payable
Due to external parties
Long term liabilities - current
Long term liabilities - noncurrent
Total liabilities
Net position (deficit) - Restricted for:
OPEB
Individuals, organizations, and other governments
Total net position (deficit)
City of Santa Clarita, California
Statement of Fiduciary Net Position
June 30, 2021
Pension (and Other
Employee Benefit)
Private -purpose
Trust Fund
Trust Fund
Other Post
Employment Benefits
Redevelopment
Custodial
(OPEB) Trust Fund
Successor Agency
Funds
$ -
$ 710,775
$ 1,818,388
-
7,478
8,469
-
-
81,605
-
-
17,312
-
7,734,479
-
-
21,351
-
52,283,592
-
-
-
1,478,188
3,188,004
52,283,592
9,952,271
5,113,778
-
2,100,983
-
-
51
254,117
-
-
2,150
-
313,180
-
-
-
32,452,784
-
928,660
-
-
47,439,555
-
-
48,681,446
32,709,051
52,283,592
-
-
-
(36,628,192)
(27,595,273)
$ 52,283,592
$ (36,628,192)
$ (27,595,273)
See Notes to Financial Statements 30
Contributions:
Property taxes
Employer contributions
Investment income
Contribution from property owners
Member support
Total contributions
Deductions:
Benefit payments to plan participants
Administrative expenses
Contractual services
Interest expense
Contributions on behalf of others for the purchase
of building and structures
Payments to other governments
Total deductions
City of Santa Clarita, California
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2021
Pension (and Other
Employee Benefit)
Private -purpose
Trust Fund
Trust Fund
Other Post
Employment Benefits
Redevelopment
Custodial
(OPEB) Trust Fund
Successor Agency
Funds
$ -
$ 2,531,044
$ -
638,000
-
-
10,837,684
25,230
17,784
-
-
4,694,749
-
-
489,058
11,475,684
2,556,274
5,201,591
1,275,848 - -
85,821 - 68,742
- 4,325 419,581
- 1,670,658 1,423,513
1,361,669
- 15,000,000
- 2,482,071
1,674,983 19,393,907
Net increase (decrease) in fiduciary net position
10,114,015
881,291
(14,192,316)
Net Position/(Deficit), Beginning of Year, As Restated
42,169,577
(37,509,483)
(13,402,957)
Net Position/(Deficit), End of Year $
52,283,592 $
(36,628,192)
$ (27,595,273)
See Notes to Financial Statements 31
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32
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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 (City) and its
component units 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 (Authority), and
one fiduciary component unit, the Other Post Employment Benefit (OPEB) Plan Trust Fund. The Authority is
governed by the Board of the Authority, which is comprised of City Council. Additionally, the City and
Authority have a financial benefit or burden relationship. Therefore, the entity is reported as a blended
component unit with the City's Annual Comprehensive Financial Report (ACFR). The OPEB Plan Trust Fund is
reported as a fiduciary component unit as the OPEB Plan is legally separate from the City, and the City (and
City Council) have administrative involvement in the plan, including directing the use of assets to ensure
benefits are paid to intended recipients. As the City is legally required to contribute to the plan, there is a
financial burden, thus it meets the criteria to report as a fiduciary component unit of the City. The City and
its component units 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 — Santa Clarita Public Financing Authority
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.
Fiduciary Component Unit — OPEB Plan Trust Fund
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 Plan 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.
However, the City has administrative involvement with the Plan, through City management and City Council.
Further, as the City is required to contribute to the Plan, there is a financial burden, thus meeting the criteria
to report as a fiduciary component unit within the City's statements.
33
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
B. Government -Wide and Fund Financial Statements
The City's government -wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all the activities of the City. The effect of interfund activity has been
removed from these statements, except for the interfund services provided and used. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely to a significant extent on fees and charges for support. Fiduciary
activities of the City are not included in these statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function. Taxes and other items
not included among program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds are reported as separate columns in the fund financial statements.
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
34
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
The City has conformed to the pronouncements of the GASB, which are acknowledged as the primary
authoritative statements of GAAP in the United States of America applicable to state and local governments.
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the "current financial resources" measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period
for property and sales tax, and 90 days for all other revenues. Expenditures generally are recorded when a
liability is incurred. However, debt service expenditures, expenditures related to compensated absences,
pension and other post -employment benefits, and the redemption of district credits are recorded only when
payment is due.
Property taxes, taxpayer -assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.),
net of estimated refunds and uncollectible amounts, intergovernmental revenues, charges for services, and
interest associated with the current fiscal period are all considered susceptible to accrual and so have been
recognized as revenues of the current fiscal period to the extent normally collected within the availability
period, as defined above. All other revenue items are considered measurable only when cash is received by
the City.
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 City has elected the Public
Library Special Revenue Fund as a major fund for public interest purposes.
The Landscape Maintenance District #1 Special Revenue Fund is used to account for property tax receipts
and disbursements related to the landscape maintenance district. The City has elected the Landscape
Maintenance District #1 Special Revenue Fund as a major fund for public interest purposes.
35
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Proprietary Fund Financial Statements
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) and deferred
inflows and deferred outflows of resources are included in the Statement of Net Position. The Statement of
Revenues, Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in
total net position. Under the accrual basis of accounting, revenues are recognized in the period in which
they are earned, while expenses are recognized in the period in which the liability is incurred.
Operating revenues and expenses result from the operating and maintenance of the local public transit
services. The operating revenues consist of charges to customers for the service provided. Operating
expenses include the costs of providing these services, administrative expenses and depreciation expense.
All revenues and expenses not meeting these definitions and which are not capital in nature are reported as
non -operating revenues and expenses.
The City reports the following major enterprise fund:
The Transit Enterprise Fund is used to account for the operation of the City's local public transit bus system.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in
Fiduciary Net Position. The fiduciary funds represent an OPEB plan trust fund (a fiduciary component unit), a
private -purpose trust fund and custodial funds. The OPEB plan trust funds and private -purpose trust funds
are reported using the "economic resources" measurement focus and the accrual basis of accounting.
Custodial funds are reported on the accrual basis of accounting and are custodial in nature.
The OPEB Trust Fund is used to account for transactions for retiree health care. The City has administrative
involvement of the Plan, and has reported the trust and Plan in its financial statements.
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 Custodial Funds:
The following funds are used to account for assets and liabilities held by the City as an agent and related to
the debt service activity on non -commitment special assessment debt:
Assessment District No. 92-2 Fund (Golden Valley Road)
Assessment District No. 99-1 Fund (Vermont Everett)
Community Facilities District No. 2002-1 Fund (Valencia Town Center)
Community Facilities District No. 2016-1 Fund (Vista Canyon)
36
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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 Watershed Authority
holds land ($9,937,976) and other capital assets ($63,966 net of accumulated depreciation). These amounts
are excluded from the City's custodial fund, but reported within the Watershed Authority's financial
statements.
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.
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
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.
37
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
The City also participates in the Los Angeles County Pooled Investment Fund, the Local Agency Investment
Fund, and the California Asset Management Program.
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
o Overall
o Custodial Credit Risk
o Concentration of Credit Risk
• Foreign Currency Risk
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.
38
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Property taxes in lieu of motor vehicle fee are the City's own -source revenues and are apportioned
according to formula similar to property tax revenues.
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. As of June 30, 2021 allowances for
uncollectible accounts totaled $137,387.
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.
I. Capital Assets
Government -Wide Financial Statements, Proprietary 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. General infrastructure assets consist of
roads, curbs and gutters, sidewalks, medians, street signs, bus shelters, bridges, trails, traffic signals, and
storm drains/catch basins. Capital assets are defined by the City as assets with an initial cost of more than
$5,000 ($25,000 for site improvements and building improvements and $100,000 for infrastructure) and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical
cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of
donation. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
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.
39
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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.
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.
K. 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).
L. 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.
M. 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
(CaIPERS), and additions to/deductions from CaIPERS' 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.
40
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2022.
N. Other Post -Employment Benefits
For purposes of measuring the net OPEB liability, 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, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
O. Net Position and Fund Balances
Government -Wide Financial Statements, Proprietary Funds, and Fiduciary Funds
Net position represents the difference between assets and deferred outflows of resources less liabilities and
deferred inflows of resources, and is classified into three categories:
Net Investment in Capital Assets — This amount consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction, or improvement of those assets, and excludes unspent debt proceeds. Deferred outflows
of resources and deferred inflows of resources that are attributable to the acquisition, construction, or
improvement of those assets or related debt also should be included in this component of net position.
Restricted —This amount represents the net position that is not accessible for general use because its
use is subject to restrictions enforceable by third parties and enabling legislation, reduced by liabilities
and deferred inflows of resources related to those assets.
Unrestricted —This amount represents the residual of amounts not classified in the other two categories
and represents the net position available for the City.
41
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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.
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 designated 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, 2021, the balance totaled $18,760,000, which is included in the
unassigned fund balance in the General Fund.
42
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
P. 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
Q. Estimates
The preparation of the basic financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of certain balances and the disclosure of
contingent assets and liabilities at the date of the basic financial statements and the related reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates. Management believes that the estimates are reasonable.
R. Deferred Inflows of Resources, Unavailable Revenue and Unearned Revenue
Government -Wide Financial Statements
Unearned revenue represents money received during the current or previous years that has not been
earned because certain performance criteria have not been met.
Fund Financial Statements
As described above, a deferred inflow of resources represents an acquisition of fund balance by the
government that is applicable to a future period. In addition to unearned revenue, governmental funds
report deferred inflows of resources related to resources that have earned but have not been received
within the availability period. This does not provide an available financial resource in the current period;
therefore, recognition is deferred until these criteria have been met.
43
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
S. Pronouncements Adopted in the Current Year
GASB Statement No. 84—In January 2017, the 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. This Statement is
effective for reporting periods beginning after December 15, 2019. The City has implemented this statement
effective July 1, 2020. The impact to the City resulted in agency funds being presented as custodial funds.
The effect of the implementation of this standard on beginning net position (deficit) is disclosed in Note 23.
GASB Statement No. 98 — In October 2021, the GASB issued Statement No. 98, The Annual Comprehensive
Financial Report. This Statement established the term annual comprehensive financial report and its
acronym ACFR. The new term and acronym replaces instances of comprehensive annual financial report and
its acronym in generally accepted accounting principles for state and local governments. This Statement is
effective for fiscal years ending after December 15, 2021. The City has implemented this standard and
accordingly is using the term annual comprehensive financial report or ACFR on a go forward basis.
T. Pronouncements Issued But Not Yet Adopted
The GASB has issued pronouncements that have an effective date subsequent to June 30, 2021, 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. 87 — In June 2017, the 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; enhancing the comparability of financial statements between governments;
and also enhancing the relevance, reliability (representational faithfulness), and consistency of information
about the leasing activities of governments. This Statement is effective for reporting periods beginning after
June 15, 2021.
GASB Statement No. 91— In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and
eliminate diversity in practice. The Statement is effective for reporting periods beginning after December 15,
2021.
GASB Statement No. 92 — In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The
objectives of this Statement are to enhance comparability in accounting and financial reporting to improve
the consistency of authoritative literature by addressing practices issues that have been identified during
implementation and application of certain GASB Statements. The Statement is effective for reporting
periods beginning after June 15, 2021.
GASB Statement No. 93 — In March 2020, the GASB issued Statement No. 93, Replacement of Interbank
Offered Rates (IBOR). The objective of this Statement is to address the accounting and financial reporting
implications that result from the replacement of an IBOR. The Statement is effective for reporting periods
beginning after June 15, 2021.
44
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
GASB Statement No. 94— In March 2020, the GASB issued Statement No. 94, Public -Private and Public -
Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve
financial reporting by addressing issues related to public -private and public -public partnership arrangements
(PPPs). The Statement is effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 96 — In May 2020, the GASB issued Statement No. 96, Subscription -based Information
Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and
financial reporting for subscription -based information technology arrangements (SBITAs) for government
end users (governments). The Statement is effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 97 — In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria,
and Accounting and Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans
—An Amendment of GASB Statement No.14 and No.84 and A Supersession of GASB Statement No.32. The
objective of this Statement is to (1) increase consistency and comparability related to the reporting of
fiduciary component units in circumstances in which a potential component unit does not have a governing
board and the primary government performs the duties that a governing board typically would perform; (2)
mitigate costs associated with the reporting of certain defined contribution pension plans, defined
contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension
plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial
statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial
reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that
meet the definition of a pension plan and for benefits provided through those plans. The Statement is
effective for reporting periods beginning after June 15, 2021. Certain provisions were implemented during
the current fiscal year with an immaterial effect on the City.
Note 2 - Cash and Investments
A. Cash and Investments
Cash and investments at June 30, 2021, are classified in the accompanying financial statements as follows:
Governmental
Business -Type
Activities
Activities
Fiduciary Funds
Total
Cash and investments
$ 341,497,366
$ 3,912,296
$ 2,529,163
$ 347,938,825
Restricted assets
Cash and investments
2,073,153
-
21,351
2,094,504
Cash and investments held with PARS
-
-
52,283,592
52,283,592
Cash and investments with fiscal agents
10,255,231
-
4,666,192
14,921,423
Totals
$ 353,825,750
$ 3,912,296
$ 59,500,298
$ 417,238,344
45
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Cash and investments consisted of the following at June 30, 2021:
Cash on hand and deposits
Cash on hand
$ 4,361
Deposits with financial institutions
70,142,336
Certificates of deposit
249,954
Total cash on hand and deposits
70,396,651
Investments
CA Local Agency Obligations
5,229,055
U.S. Treasury Securities
53,327,529
U.S. Government -Sponsored Enterprise Securities
64,287,407
Negotiable Certificate of Deposits
12,338,487
Supranational
3,619,491
Medium -Term Notes
37,690,075
Money Market Funds
1,006,547
Asset Backed
8,952,868
State of CA Local Agency Investment Fund (LAIF)
74,441,214
L.A. County Pooled Investment Fund (LACPIF)
1,633,952
California Asset Management Program (CAMP)
15,015,550
Total investments
277,542,174
Restricted investments
Money Market Funds
2,094,504
Investment with PARS
52,283,592
Total restricted investments
54,378,096
Restricted investments with fiscal agent
Money Market Funds
14,921,423
Total investments
346,841,693
Total cash and investments
$ 417,238,344
The carrying amounts of the City's deposits were $70,142,336 at June 30, 2021. Bank balances before
reconciling items were $71,788,319 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.
46
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
B. Investments Authorized by the California Government Code and the City's Investment Policy
The following table identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies certain
provisions of the California Government Code (or the City's investment policy, where more restrictive) that
address interest rate risk, credit risk, and concentration of credit risk. This table does not address
investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements
of the City, rather than the general provisions of the California Government Code or the City's investment
policy.
Maximum
Percentage or
Maximum
Authorized
Maximum
Amount of
Investment in
Investment Type
Maturity
Portfolio*
One Issuer**
Local Agency Bonds
5 years
No Limit
5%
U.S. Treasury Obligations
5 years
No Limit
No Limit
State of California Obligations
5 years
No Limit
5%
California Local Agency Obligations
5 years
No Limit
5%
U.S. Governmental -Sponsored Enterprise Securities
5 years
No Limit
None
Supranationals/Unsubordinated Obligations
5 years
30%
10%
Banker's Acceptances
180 days
40%
5%
Commercial Paper
270 days
25%
5%
Negotiable Certificates of Deposit
5 years
30%
5%
Repurchase Agreements
1 year
No Limit
No Limit
Medium -Term Notes
5 years
30%
5%
Money Market Funds
5 years
20%
10%
Mortgage Pass -Through Securities
5 years
20%
5%
Asset Backed
5 years
20%
5%
California Asset Management Program (CAMP)
Not Applicable
No Limit
No Limit
Los Angeles County Pooled Investment Fund (LACPIF) Not Applicable No Limit No Limit
Maximum amount
State of California Local Agency Investment Fund (LAIF) Not Applicable permitted per No Limit
California State
Treasurer's
* Excluding amounts held by bond trustees that are not subject to California Government Code restriction.
** Banker's acceptances may have no more than 30 percent in any one commercial bank, commercial paper may not
represent more than 10 percent of the City's surplus funds for any single issuer, and money market mutual funds may
have no more than 10 percent invested in any one mutual fund.
47
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements,
rather than the general provisions of the California Government Code or the City's investment policy. The
table below identifies the investment types that are authorized for investments held by bond trustees. The
table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk,
and concentration of credit risk.
Maximum
Percentage of Maximum
Maximum Amount of Investment in
Authorized Investment Type Maturity Portfolio One Issuer
U.S. Treasury Obligations N/A 50% None
U.S. Government -Sponsored Enterprise Securities 5 years None None
Money Market Funds 5 years None None
State of California Local Agency Investment Fund (LAIF) 5 years 30% None
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, 2021, the City had the following investment maturities:
Investment Type
Investment
Local Agency Bonds
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Supranational
Negotiable Certificates of Deposit
Medium -Term Notes
Money Market Funds
Asset Backed
Local Agency Investment Fund (LAIF)
Los Angeles County Pooled
Investments Fund (LACPIF)
California Asset Management
Program (CAMP)
Total investments
Restricted investments
Money Market Funds
Investment with PARS
Total restricted investments
Restricted investments with fiscal agent
Money Market Funds
Total investments subject
to interest rate risk
Investment Maturities (In Years)
Fair Value Less Than 1 1 to 2 2 to 3 3 to 4 4 to 5 More t an 5
$ 5,229,055
$
$ -
$ 2,466,037
53,327,529
251,470
19,102,563
64,287,407
2,986,602
9,456,282
17,014,828
3,619,491
2,263,789
-
1,355,702
12,338,487
1,794,383
10,544,104
-
37,690,075
8,072,220
13,319,739
8,190,805
1,006,547
-
-
-
8,952,868
-
3,294,330
2,778,183
74,441,214
74,441,214
-
-
1,633,952 1,633,952
$ 1,679,493 $ 1,083,525 $
16,760,412 17, 213, 083
23,776,456 11,053, 239
8,093,310 14,000
- 1,006,547 -
1,595,309 1,285,046
15,015,550 15,015,550 - - - - -
277,542,174 106,207,710 36,865,925 50,908,119 51,904,980 31,655,441
2,094,504 2,094,504 - - - - -
52,283,592 37,733,073 916,520 881,457 1,046,203 2,408,947 9,297,392
54,378,096 39,827,577 916,520 881,457 1,046,203 2,408,947 9,297,392
14,921,423 14,921,423
$ 346,841,693 $ 160, 556,709 $ 37, 882,445 $ 51, 889,576 $ 52, 551,183 $ 34, 664,388 $ 9, 997,392
48
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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 Type
Rating
Fair Value
AAA
AA+ AA AA- A+ A A- BBB+ or ess
Not Rate
Investments
Local Agency
None
$ 5,229,055
$ 1,122,689
$ 700,023 $ 2,645,704 $ 383,502 $ - $ -
$ 377,137
U.S. Treasury Securities
None
53,327,529
53,327,529
- - - - -
-
U.S. Government -Sponsored
Enterprise Securities
None
64,287,407
4,007,886
57,253,543 - - - -
3,025,978
Supranational
AA-
3,619,491
3,619,491
- - - - -
-
Negotiable Certificates of Deposit
None
12,338,487
-
- - - - -
12,338,487
Medium -Term Notes*
A-
37,690,075
-
3,010,295 8,003,914 14,141,387 10,661,320 1,859,157
14,000
Money Market Funds
AAA
1,006,547
-
- - - - -
1,006547
Asset Backed
AA-
8,952,868
6,476,458
- - - - -
2,476:410
Local Agency Investment Fund (LAIF)
None
74,441,214
-
- - - - -
74,441,214
Los Angeles County Pooled
Investments Fund (LACPIF)
None
1,633,952
-
- - - - -
1,633,952
California Asset Management
Program (CAMP)
None
15,015,550
15,015,550
Total investments
277,542,175 68,554,052 60,963,861 10,649,618 14,524,890 10,661,320
1,859,157 110,329,276
Restricted investments
Money Market Funds
None 2,094,504 - - - - -
- 2,094,504
Investment with PARS
None 52,283,592 835,432 91,743 487,637 593,237
3,920,504 46,355,039
Total restricted investments
54,378,096 835,432 91,743 487,637 593,237
3,920,504 48,449,543
Restricted investments with fiscal agent
Money Market Funds
None 14,921,423 - - - - -
- 14,921,423
Total restricted investments
with fiscal agent
14,921,423
14,921,423
Total investments subject
to interest rate risk
$ 346,841,693 $ 69,389, 884 $ 60,963,861 $ 10,741,361 $ 15,012,527 $ 11,254,557 $ 5,779,661 $ 173,700,242
* Included in the medium -term notes is an investment in Lehman Brothers, which is not rated as of June 30,
2021. 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, 2021, this
investment is recorded at $14,000. Additionally, the City had two investments totaling $1,859,157 with
ratings lower than the investment policy minimum (Morgan Stanley and CityGroup). As these were
downgraded subsequent to purchase, the City's policy allows for these investments.
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. As of June 30, 2021, the City held
investments in Federal National Mortgage Association ($30,072,405) and Federal Home Loan Mortgage
Corporation ($14,874,296) which comprise 10.84% and 5.36% of the City's total investments.
49
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk associated with
investments that are uninsured, are not in the name of the City, or are held by counterparty or
counterparty's trust department or agent but not in the City's name. In the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, the counterparty is then unable to deliver securities that
are in the possession of another party. As of June 30, 2021, 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, 2021:
Investment Type
Fair Value
Investments
Local Agency Bonds
$ 5,229,055
U.S. Treasury Securities
53,327,529
Enterprise Securities
64,287,407
Supranational
3,619,491
Negotiable Certificates of Deposit
12,338,487
Medium -Term Notes
37,690,075
Money Market Funds
1,006,547
Asset Backed
8,952,868
Investments with PARS
52,283,592
Total leveled investments
$ 238,735,050
Uncategorized Investments
Local Agency Investment Fund (LAIF)
$ 74,441,214
Los Angeles County Pooled Investments Fund (LACPIF)
1,633,952
California Asset Management Program (CAMP)
15,015,550
Restricted investments:
Money Market Funds
2,094,504
Restricted investments with fiscal agent:
Money Market Funds
14,921,423
Total investment portfolio
$ 346,841,693
Level 2
$ 5,229,055
53,327,529
64, 287,407
3,619,491
12,338,487
37,690,075
1,006,547
8,952,868
52,283,592
$ 238,735,050
Deposits and withdrawals related to the investments in LAIF, LACPIF, CAMP, 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.
50
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
I. Investment in State Investment Pool
The City is a participant in the Local Agency Investment Fund (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 $75,000,000 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, 2021 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, 2021, the City had $74,441,214 invested in LAIF. The LAIF fair value factor 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. LAIF is not registered with the Securities and Exchange Commission and is not
rated.
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 anytime
without penalty. The LACPIF does not impose any maximum investment limit. 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, 2021, the City had $1,633,952 invested in the LACPIF.
K. Investment in California Asset Management Program
The City is a voluntary participant in a Joint Powers Authority (JPA), the California Asset Management
Program (CAMP), which is a permitted investment under California Government Code 53601(p). CAMP is
directed by a Board of Trustees, which is made up of experienced local government finance directors and
treasurers.
As of June 30, 2021, the City had $15,015,550 invested in the CAMP.
51
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 3 - Accounts Receivable
Accounts receivable as of June 30, 2021, including allowances for uncollectible accounts, is as follows:
Gross receivables
Less: allowance for uncollectibles
Accounts receivables, net
Gross receivables
Less: allowance for uncollectibles
Accounts receivables, net
Note 4 - Loans Receivable
Landscape
General
Public
Maintenance
Fund
Library
District #1
$
636,194
$
53,547
$
11,525
(102,664)
-
-
$
533,530
$
53,547
$
11,525
Non -Major
Governmental
Funds
Transit
Total
$
210,803
$
1,301
$
913,370
(34,723)
-
(137,387)
$
176,080
$
1,301
$
775,983
The loans receivable balance in the governmental funds totaled $2,513,174 at June 30, 2021 and has been offset
by deferred inflows of resources for unavailable revenues since these loans are not available to finance current
expenditures. The majority of the balance is related to deferred -payment rehabilitation loans to qualified
homeowners in connection with CDBG and HOME rehabilitation programs.
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, 2021, the loan amounts reported in the General Fund and Developer
Fees Special Revenue Fund was $5,601,007 and $ 5,319,886, respectively. In addition, the unpaid accrued
interest of these notes is $ 3,313,733 and $1,910,362 respectively, which is included in the note balance.
52
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2021:
Governmental activities:
Non -depreciable assets
Land
Construction in progress
Total non -depreciable assets
Depreciable assets
Site improvements
Building and improvements
Equipment
Infrastructure
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
Infrastructure
Total accumulated depreciation
Total depreciable assets, net
Total capital assets, net
Governmental Activities
Balance
Balance
July 1, 2020
Additions
Deletions
June 30, 2021
$ 232,854,321
$ 30,147,119
$ -
$ 263,001,440
79,137,952
57,468,072
(1,843,738)
134,762,286
311,992,273
87,615,191
(1,843,738)
397,763,726
49,973,061
1,386,086
-
51,359,147
72,637,100
129,540
-
72,766,640
15,224,911
1,088,309
(251,834)
16,061,386
1,033,211,445
22,329,420
-
1,055,540,865
1,171,046,517
24,753,783
(251,834)
1,195,728,038
21,659,865
1,880,007
-
23,539,872
25,161,982
1,476,663
-
26,638,645
9,890,807
1,109,516
(251,834)
10,748,489
401,973,694
21,543,799
-
423,517,493
458,686,348
26,009,985
(251,834)
484,444,499
712,360,169
(1,243,593)
-
711,283,539
$ 1,024,352,442 $ 86,371,598 $ (1,843,738) $ 1,109,047,265
Depreciation expense was charged to functions/programs of governmental activities for the fiscal year
ended June 30, 2021, as follows:
Depreciation:
Governmental Activities
General government
$ 758,685
Public safety
16,145
Recreation and community service
2,523,967
Neighborhood services
157,790
Public works
613,436
Community development
30,813
Internal service funds depreciation
365,348
Allocated Depreciation
4,466,184
Unallocated infrastructure depreciation
21,543,801
Total depreciation expense $ 26,009,985
53
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2021:
Business-TVoe Activities
Balance
Balance
July 1, 2020
Additions
Deletions Transfers
June 30, 2021
Business -type activities
Non -depreciable assets
Land
$ 15,087,880
$ -
$ - $ -
$ 15,087,880
Construction in progress
5,570,040
4,930,902
(172,302) -
10,328,640
Total non -depreciable assets
20,657,920
4,930,902
(172,302) -
25,416,520
Depreciable assets
Site improvements
12,941,276
-
- -
12,941,276
Building and improvements
41,483,799
172,302
- -
41,656,101
Equipment
63,670,064
4,383,899
(2,437,593) -
65,616,370
Total depreciable assets
118,095,139
4,556,201
(2,437,593) -
120,213,747
Less accumulated depreciation
Site improvements
4,968,254
568,221
- -
5,536,475
Building and improvements
14,575,773
890,238
- -
15,466,011
Equipment
34,837,989
4,203,875
(2,437,593) -
36,604,271
Total accumulated depreciation
54,382,016
5,662,334
(2,437,593) -
57,606,757
Total depreciable assets, net
63,713,123
(1,106,133)
- -
62,606,990
Total capital assets, net
$ 84,371,043
$ 3,824,769
$ (172,302) $ -
$ 88,023,510
Depreciation expense for business -type activities for the fiscal year ended June 30, 2021 was charged as
follows:
Depreciation:
Business -type Activities:
Transit enterprise fund
$ 5,662,334
54
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 7 - Long -Term Debt
A. Governmental Activities
The City has outstanding bonds and notes from direct borrowings and direct placements related to
governmental activities totaling $77,875,820 and $542,094, respectively. The City has pledged assessment
revenues to pay for the debt service for the lease revenue, revenue and taxable revenue bonds related to
government -type activities. All outstanding bonds contain an event of default that changes the timing of
repayment of outstanding amounts to become immediately due if the City is unable to make payment. The
following is a summary of long-term debt transactions of the City for the year ended June 30, 2021:
Classification
Balance Balance Due Within Due More
July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year
Lease, Revenue and Taxable Revenue Bonds
Series 2016A (Golden Valley Road)
$ 8,785,000 $
- $
(420,000) $
8,365,000 $
435,000 $
7,930,000
Series 2016B (OSPD)
12,805,000
-
(375,000)
12,430,000
410,000
12,020,000
Series 2019 (Sheriff Station)
25,850,000
-
-
25,850,000
505,000
25,345,000
Series 2020A (Recreational Facility)
-
10,645,000
-
10,645,000
-
10,645,000
Series 202OA-T (Recreational Facility)
-
3,625,000
(485,000)
3,140,000
350,000
2,790,000
Plus deferred amount for issuance premium, net of discount
2,848,999
225,409
(90,340)
2,984,068
87,410
2,896,658
Total lease revenue bonds
50,288,999
14,495,409
(1,370,340)
63,414,068
1,787,410
61,626,658
Revenue and Taxable Revenue Bonds
Series 2018A (Streetlights Acquisition and Retrofit Program)
Series 2018B-T (Streetlights Acquisition and Retrofit Program)
Plus deferred amount for issuance premium, net of discount
Total revenue and taxable revenue bonds
Total Lease, Revenue and Taxable Revenue Bonds
Notes from direct borrowings and direct placements
Private Placement Lease:
Refunding, Series 2015
Capital Leases
Total notes from direct borrowings and direct placements
Subtotal Bonds, Loans and Capital Leases
Compensated absences
Claims and judgments
Total
11,295,000 -
-
11,295,000
-
11,295,000
2,985,000 -
(305,000)
2,680,000
310,000
2,370,000
516,697 -
(29,945)
486,752
15,969
470,783
14,796,697 -
(334,945)
14,461,752
325,969
14,135,783
65,085,696 14,495,409
(1,705,285)
77,875,820
2,113,379
75,762,441
730,371 - (730,371) - - -
497,583 164,970 (120,459) 542,094 159,397 382,697
1,227,954 164,970 (850,830) 542,094 159,397 382,697
66,313,650 14,660,379 (2,556,115) 78,417,914 2,272,776 76,145,138
4,144,358 2,165,793 (1,996,898) 4,313,253 1,996,898 2,316,355
4,901,109 2,751,537 (1,242,000) 6,410,646 3,974,601 2,436,045
$ 75,359,117 $ 19,577,709 $ (5,795,013) $ 89,141,813 $ 8,244,275 $ 80,897,538
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, 2021, was $8,365,000 for Series 2016A and $12,430,000 for Series 2016B.
The Open Space Preservation District (OSPD) special assessment revenues within the OSPD Fund have been
pledged as an available source of repayment for the bonds.
55
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
The annual debt service requirements on the remaining bonds are as follows:
Series 2016A:
Governmental Activities
Bonds
Year Ending June 30,
Principal
2022
$ 435,000
2023
450,000
2024
470,000
2025
490,000
2026
510,000
2027-2031
2,785,000
2032-2036
3,225,000
Series 201613:
Interest
$ 262,200
244,500
226,100
206,900
186,900
698,225
260,975
Total
$ 697,200
694,500
696,100
696,900
696,900
3,483,225
3,485,975
$ 8,365,000 $ 2,085,800 $ 10,450,800
Governmental Activities
Bonds
Year Ending June 30,
Principal
Interest
Total
2022
$ 410,000
$ 391,406 $
801,406
2023
445,000
375,706
820,706
2024
485,000
358,606
843,606
2025
525,000
340,006
865,006
2026
565,000
319,806
884,806
2027-2031
3,435,000
1,213,609
4,648,609
2032-2036
4,430,000
711,488
5,141,488
2037-2038
2,135,000
64,875
2,199,875
$ 12,430,000 $ 3,775,503 $ 16,205,503
56
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Lease Revenue Bonds — Series 2019
In June 2019, the Authority issued Lease Revenue Bonds, Series 2019 (Sheriff Station Project) in the amount
of $25,850,000. The City will lease certain real property in conjunction with the Sheriff Station project, and
receive rental payments, which are pledged for repayment of the bonds. Interest on the Lease Revenue
Bonds, Series 2019, is paid as part of a variable rate between 4 percent and 5 percent payable on June 1 and
December 1 of each year commencing on December 1, 2019. Principal payments are due annually in various
amounts commencing December 1, 2022, through June 1, 2049. The unpaid balance as of June 30, 2021,
was $25,850,000. The bonds maturing on or after June 1, 2028 are subject to redemption prior to their
respective maturity dates as a whole or in part on any date on or after June 1, 2027 at a redemption price
equal to the principal amount of the Bonds to be redeemed, plus accrued but unpaid interest, without
premium. Further, the bonds are subject to redemption prior to their respective maturity dates, as a whole
or in part on a pro rata basis if the City takes the leased property or any portion by power of eminent
domain, or from insurance proceeds due to destruction of the leased property, at a redemption price equal
to the sum of the principal of the bonds to be redeemed plus accrued by unpaid interest, without premium.
The term bonds maturing on June 1, 2037 are subject to mandatory redemption by sinking account
payments of $940,000 and $970,000 on June 1, 2036 and June 1, 2037, respectively.
The annual debt service requirements on the remaining bonds are as follows:
Year Ending June 30,
2022
2023
2024
2025
2026
2027-2031
2032-2036
2037-2041
2042-2046
2047-2049
Governmental Activities
Bonds
Principal Interest Total
$ 505,000
530,000
555,000
585,000
610,000
3,550,000
4,355,000
5,150, 000
5,975,000
4,035,000
$ 924,563
899,313
872,813
845,063
815,813
3,595,515
2,780,262
1,991,060
1,170,559
253,056
$ 1,429,563
1,429,313
1,427,813
1,430,063
1,425,813
7,145, 515
7,135,262
7,141, 060
7,145, 559
4,288,056
$ 25,850,000 $ 14,148,017 $ 39,998,017
57
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2021, 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, 2021, was $2,680,000. 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.
Ad valorem revenues and assessment revenues within the Lighting District Funds have been pledged as
available sources of repayment for the bonds.
The annual debt service requirements on the remaining bonds are as follows:
Year Ending June 30,
2022
2023
2024
2025
2026
2027-2032
2032-2036
2037-2041
2042-2046
2046-2048
Governmental Activities
Bonds
Principal Interest Total
$ 310,000
320,000
330,000
340,000
350,000
1,960,000
2,385,000
2,820,000
3,525,000
1,635,000
$ 550,063
540,613
530,656
519,975
508,544
2,327,434
1,912,319
1,457,972
723,575
66,100
$ 860,063
860,613
860,656
859,975
858,544
4,287,434
4,297,319
4,277,972
4,248,575
1,701,100
$ 13,975,000 $ 9,137,250 $ 23,112,250
58
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Lease Revenue and Taxable Revenue Bonds — Series 2020A and 2020A-T (Recreational Facility)
In October 2020, the Santa Clarita Public Financing Authority issued Lease Revenue Bonds Series 2020A and
Taxable Lease Revenue Bonds Series 2020A-T (Recreational Facility), in the amount of $10,645,000 and
$3,625,000 respectively. Interest on the bonds is paid as part of a fixed rate between 0.45% and 4.00%
payable on December 1 and June 1 of each year commencing on December 1, 2020. Principal payments are
due annually in various amounts commencing June 1, 2030 through June 1, 2050 for Series 2020A and June
1, 2021 through June 1, 2030 for Series 2020A-T. Net bond proceeds in the amount of $14,200,000 were
used to reimburse the City in October 2020 for its acquisition of an approximately 4.4 acre parcel and 93,000
square foot recreational facility located at 27745 Smyth Drive within the City.
The unpaid balance as of June 30, 2021, was $13,785,000. The bonds are payable solely from and secured by
revenues pledge, including base rental payments payable to the City, bond proceeds, investment income, or
insurance procedures or condemnation awards received or payable relating to base rental payments.
The annual debt service requirements on the remaining bonds are as follows:
Governmental Activities
Bonds
Year Ending June 30,
Principal
Interest
Total
2022
$ 350,000
$ 356,678 $
706,678
2023
355,000
354,589
709,589
2024
355,000
351,784
706,784
2025
360,000
348,319
708,319
2026
365,000
344,086
709,086
2027-2031
1,920,000
1,618,803
3,538,803
2032-2036
2,175,000
1,365,875
3,540,875
2037-2041
2,430,000
1,110,206
3,540,206
2042-2046
2,825,000
712,175
3,537,175
2047-2050
2,650,000
184,663
2,834,663
$ 13,785,000 $ 6,747,178 $ 20,532,178
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 were
due annually in various amounts commencing October 1, 2015, through October 1, 2020. The remaining
amount outstanding was paid off during the year.
59
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Capital Leases
On June 11, 2019, the City Council approved a lease -purchase agreement with Kyocera Document Solutions
West, LLC for Citywide printers and copiers in the amount of $497,730. The lease agreement has 60 monthly
payments of $8,944 with an interest rate of 3 percent. The final payment is due July 1, 2024. The lease was
assigned by Kyocera Document Solutions West, LLC.
The assets acquired through the capital lease are as follows:
Equipment
Less: accumulated depreciation
Total
Future capital lease payment requirements are as follows:
Year Ending June 30,
2022
2023
2024
2025
Net minimum lease payments
Less: amount representing interest
Present value of net minimum lease payments
$ 559,747
(204,498)
$ 355,249
Total
$ 107,448
107,448
107,448
11,127
333,471
(19,547)
$ 313,924
On April 28, 2020, the City Council approved a lease -purchase agreement with Kyocera Document Solutions
West, LLC to install library printers and copiers in the amount of $88,497. The lease agreement has 60
monthly payments of $1,509 with an interest rate of 0.90 percent. The final payment is due April 5, 2025.
The lease was assigned by Kyocera Document Solutions West, LLC.
The assets acquired through the capital lease are as follows:
Equipment
Less: accumulated depreciation
Total
$ 111,831
(26, 094)
$ 85,737
.E
Future capital lease payment requirements are as follows:
Year Ending June 30,
2022
2023
2024
2025
Net minimum lease payments
Less: amount representing interest
Present value of net minimum lease payments
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Total
$ 18,107
18,107
18,107
15,089
69,410
(1,209)
$ 68,201
On April 27, 2021, the City Council approved a lease -purchase agreement with Zamboni Company, USA Inc.
for Zamboni Equipment at the Cube — Ice and Entertainment Center (The Cube) in the amount of $164,970.
The lease agreement has 60 monthly payments of $3,029 with an interest rate of 3.87 percent. The final
payment is due April 29, 2026. The lease was assigned by Zamboni Company, USA Inc.
The assets acquired through the capital lease are as follows:
Equipment
Less: accumulated depreciation
Total
Future capital lease payment requirements are as follows:
Year Ending June 30,
2022
2023
2024
2025
2026
Net minimum lease payments
Less: amount representing interest
Present value of net minimum lease payments
$ 164,970
(2,750)
$ 162,220
Total
$ 36,342
36,342
36,342
36,342
30,285
175,653
(15,684)
$ 159,969
61
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Compensated Absences
The City's liability for accrued and unpaid compensated absences in the governmental activities totaled
$4,313,253 at June 30, 2021. The majority of compensated absences are liquidated through the General
Fund.
Claims and Judgments
The City's liability for outstanding claims and judgments is $6,410,646 at June 30, 2021 (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, 2021, is as follows:
Balance
June 30, 2020 Additions
Balance
Deletions June 30, 2021
Due Within Due More
One Year Than One Year
Compensated
absences $ 118,877 $ 59,049 $ (36,257) $ 141,669 $ 36,257 $ 105,412
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, 2021, deposits payable were as follows:
General Fund:
Deposits from developers
Sheriff's Station deposits payable
Other deposits payable
Total deposits payable
$ 2,208,220
795
932,867
3,141,882
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 $18,000,000 into the
City's trust account earmarked for the design, engineering, and construction of the new Station. As of June 30,
2021, the City has used $17,999,205 from amounts on deposit.
62
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2021, the City
accrued a liability of $55,635,573 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, 2021:
Bridge and Thoroughfare Credits:
Bouquet District
Eastside District
Via Princessa District
Valencia District
Total Bridge and Thoroughfare Credits
Note 10 - Interfund Transactions
A. Due To/Due From
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
$ 21,955,779 $ - $ - $ 21,955,779
11,927,888 - - 11,927,888
171,264 6,009,467 - 6,180,731
15,571,175 - - 15,571,175
$ 49,626,106 $ 6,009,467 $ - $ 55,635,573
At June 30, 2021, the City had the following short-term interfund receivables and payables:
Due to Other Funds:
Non -Major Governmental Funds
Total
Due From
Other Funds
General
$ 4,580,961
$ 4,580,961
63
B. Advances
At June 30, 2021, the City had the following interfund advances:
Advances From Other Funds:
Bridge and Thoroughfare
Public Library
Total
Bridge and Thoroughfare
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Advances To Other Funds
Developer
General Fees Total
$ 6,279,468 $ 131,695 $ 6,411,163
1,744,380 - 1,744,380
$ 8,0231848 $ 131,695 $ 8,155,543
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, 2021, the amount of the advance
outstanding is $601,580.
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,
2021, the amount of the advance outstanding is $1,054,701.
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, 2021, the amount of
the advance outstanding is $610,165.
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 51039). 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, 2021, the amount of the advance outstanding is $1,927,880.
64
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
In May 28, 2019, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $2,000,000
for the onsite construction of the new Santa Clarita Valley Sheriff Station, which includes the main station
building, detention facility, helipad, dry utilities, radio antenna tower, perimeter walls, landscaping,
furnishings, fixtures, and equipment. 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, 2021, the amount of
the advance outstanding is $2,085,142.
In July 2020, 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, 2021, the amount of the advance
outstanding is $131,695.
Public Library
The General Fund advanced the Public Library Special Revenue Fund $1,744,380, which consists of the
following individual advances:
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, 2021, the
principal amount of the advance of $1,744,380 is outstanding.
C. Transfers
At June 30, 2021, the City had the following transfers:
Transfers Out
Landscape Non -Major Transit Internal
General Developer Maintenance Governmental Enterprise Service
Fund Fees District#1 Funds Fund Fund Total
Transfers in:
General Fund
$ - $
69,458 $ 258,935 $ 25,916,737 $ 343,778 $
38,076 $ 26,626,984
Landscape Maintenance District#1
10,000
- - - -
- 10,000
Public Library
-
- 98,500 -
98,500
Non -Major Governmental Funds
14,004,670
17,000 2,415,081 3,690
16,440,441
Internal Service Funds
64,413
- - 717 -
65,130
Total
$ 14,079,083 $
69,458 $ 275,935 $ 28,431,035 $ 347,468 $
38,076 $ 43,241,055
The General Fund made transfers to Areawide Fund for $9,780,852 to provide for urban forestry and parks
and parks facilities maintenance, to Landscape Maintenance District #1 and non -major governmental funds
for operating and capital improvement projects for $1,631,118 and current year debt service payments for
$2,602,700, totaling $4,233,818. Transfers from the General Fund to the Self -Insurance Internal Service Fund
of $64,413 were for risk management operations.
65
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
The Developer Fees Special Revenue Fund made transfers to the General Fund for administrative costs for
$69,458.
The Landscape Maintenance District #1 Special Revenue Fund made transfers to the General Fund and the
non -major governmental fund for operating costs and contribution to pay down the City's unfunded accrued
liability for $57,000 and $218,935, respectively.
The American Rescue Plan Fund made transfer to the General Fund for $ 9,474,280 to cover revenue loss for
FY 2020 attributed for COVID-19 pandemic.
The Non -major governmental funds, made transfers to the General Fund for current CalPERS pension
obligations plus additional contribution to pay down the City's Unfunded Accrued Liability and for the
acquisition for the ice cube for $968,235 & $14.7M, respectively.
The non -major governmental funds made transfers to the non -major governmental funds in the amount of
$229,588 for streetlight operations and maintenance.
Transfers from the non -major governmental funds to non -major governmental funds of $766,406 represents
debt service payments for the 2016 Lease Revenue Refunding Bonds and $863,785 for the 2018 Lease
Revenue Bonds Series A and 2018 Taxable Lease Revenue Bonds Series B.
The Transit Enterprise Fund made transfers to the General Fund for $150,000 to support the senior center
transit operations and $193,778 for contribution to the City's Unfunded Accrued Liability.
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 11- Fund Balances and Net Position
A. Fund Balance Classification
The details of fund balance of the governmental funds as of June 30, 2021, are presented below:
Major Governmental Funds
Landscape
Non -Major
General
Bridge and Developer Public
Maintenance
Governmental
Fund
Thoroughfare Fee Library
District 41
Funds
Total
Nonspendable:
Prepaid items
$ 391,738
$ $ $ 112,800
$ 281,324
$ 97,380
$ 883,242
Deposits with others
60,000
-
-
-
60,000
Advances to other funds*
7,023,154
- - -
-
-
7,023,154
Total nonspendable
7,474,892
112,800
281,324
97,380
7,966,396
Restricted:
Landscape maintenance
-
22,946,983 5,349,384
28,296,367
Lighting District
- -
- 14,192,379
14,192,379
Capital improvements
7,369,619 1,718,057
8,140,639
17,228,315
Transportation
- -
39,374,211
39,374,211
Open space preservation
-
6,848,214
6,848,214
Public Safety
250,020
- 304,679
554,699
Public library
-
1,522,355 3,872,885
5,395,240
Air quality improvement
112,855
- 178,378
291,233
Stormwater
-
3,885,950
3,885,950
Public education and government
604,329
604,329
Tourism marketing
-
542,936
542,936
Low -and moderate -income housing
313,115
1,878,262
2,191,377
Clean Safe Water
- -
1,502,066
1,502,066
Bond Proceeds
9,644,574 - -
- - -
9,644,574
Other
- -
- 2,707,106
2,707,106
Total restricted
9,644,574 7,369,619 2,394,047
1,522,355 22,946,983 89,381,418
133,258,996
Committed:
Capital improvements
- 832
- - -
832
Total committed
832
832
Assigned:
Capital projects
15,500,000 -
41,444 - - 713,720
16,255,164
Claims and settlements
-
- 10
10
Pension
2,000,000
-
2,000,000
Public facilities
93,406,093
- -
93,406,093
Total assigned
110,906,093 -
41,444 - - 713,730
111,661,267
Unassigned
59,968,580
- - - (869,803)
59,098,777
Total fund balances
$ 187,994,139 $ 7,369,619 $
2,436,323 $ 1,635,155 $ 23,228,307 $ 89,322,725
$ 311,986,268
* Accrued interest on General Fund advances to other funds of $1,000,694, do not provide current financial
resources and are reported as deferred inflows of resources for unavailable revenues.
67
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
For net position, within the business type activities, the net investment in capital assets includes capital
assets. For the governmental activities, the capital asset balance is offset by the associated debt balances
and bond reserves as follows:
Governmental Activities:
Capital Assets, net
$ 1,109,047,265
Series 2016A (Golden Valley Road)
(8,365,000)
Series 2016B (Open Space Preservation District)
(12,430,000)
Series 2019 (Sheriff Station)
(25,850,000)
Series 2018A & 201813-T (Streetlight & Retrofit)
(13,975,000)
Series 2020A & 2020A-T (Recreational Facility)
(13,785,000)
Restricted Cash and Investments
610,657
Issuance premium
(3,470,820)
Capital Lease
(542,094)
Deferred charges on Refunding
1,339,105
Net investment in Capital Assets $ 1,032,579,113
Note 12 - Agent Multiple -Employer Plan
A. Plan Description
The City's defined benefit pension plan, California Public Employees' Retirement System (CaIPERS), 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.go .
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.
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
The Plan's provisions and benefits in effect as of June 30, 2021 are summarized as follows:
Formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Required Unfunded Accrued Liability (UAL) contribution
Applies to:
Miscellaneous
Tier 1
Tier 2
Tier 3
2.7% at 55
2% at 60
2% at 62
5 years of service
5 years of service
5 years of service
monthly for life
monthly for life
monthly for life
50-55
50-60
52-62
2.7%
2.0%
2.0%
8%
7%
6.25%
9.398%
$3,591,974
Tier 1 Tier 2
Employees hired before
April 9, 2011*
Employees hired
between April 9, 2011,
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). *
Tier 3
Employees hired
January 1, 2013, or later
* 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, 2019, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 236
Employees entitled to but not yet receiving benefits 454
Active employees 449
1,139
The information was obtained from the CalPERS Annual Valuation Report as of June 30, 2019.
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 CaIPERS' 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, 2021, including amounts paid by the City related
to employees' required contribution rates. The employer contributions during the year ended June 30, 2021
were $11,219,252.
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
E. Actuarial Assumptions
The total pension liability in the June 30, 2019 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary increases
Investment rate of return
June 30, 2019
June 30, 2020
Entry -Age Normal Cost Method
7.15 percent
2.625 percent
Varies by Entry Age and Service
7.25 percent
Mortality rates were based on the probabilities of mortality are based on the 2017 CalPERS Experience
Study for the period from 1997 to 2015. Pre -retirement and Post -retirement mortality rates include 15 years
of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
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 7.25 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.
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 adjusted to account for assumed administrative expenses. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are the same for
each Plan.
70
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
These geometric rates of return are net of administrative expenses and are summarized in the following
table:
Assumed Asset
Real Return
Real Return
Asset Class 111
Allocation
Years 1-10(2)
Years 11+(3)
Global Equity
50.0%
4.80%
5.98%
Fixed Income
28.0%
1.00%
2.62%
Inflation Assets
0.0%
0.77%
1.81%
Private Equity
8.0%
6.30%
7.23%
Real Estate
13.0%
3.75%
4.93%
Liquidity
1.0%
0.00%
-0.92%
100
(1) In the System's ACFR, fixed income is included in Global Debt Securities; Liquidity is included in Short-term
Investments; Inflation Assets are included in both Gloal Equity Securityes and Global Debt Securities
(2) An expected inflation rate of 2.00% used for this period
(3) An expected inflation rate of 2.92% used for this period
F. 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 statutorily required rates, actuarially
determined. 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 plan members. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit payments to
determine the total pension liability. 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 Cal PERS website.
71
G. Changes in the Net Pension Liability
Balances at June 30, 2019
Changes recognized for the measurement period:
Service cost
Interest
Differences between expected and
actual experience
Net Plan to Plan Resource Movement
Contributions from the employer
Contributions from the employees
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Other miscellaneous (expense)
Netchanges
Balances at June 30, 2020
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Increase (Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability (a)
Net Position (b)
Liability (a) - (b)
$ 211,036,792
$ 172,127,426
$ 38,909,366
5,350,001
-
5,350,001
15,203,985
-
15,203,985
2,498,828
-
2,498,828
-
15,978,300
(15,978,300)
-
2,530,805
(2,530,805)
-
8,957,955
(8,957,955)
(7,134,971)
(7,134,971)
-
-
(242,657)
242,657
15,917,843
20,089,432
(4,171,589)
$ 226,954,635
$ 192,216,858
$ 34,737,777
The plan's Fiduciary Net Position as a percentage of the total pension liability is 84.70% for the
measurement period ending June 30, 2020.
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, 2021, the total
net pension liability was allocated as follows:
Net pension liability
Governmental
Activities
$ 33,516,968
Transit Total Net
Enterprise Fund Pension Liability
$ 1,220,809 $ 34,737,777
H. 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% Decrease Current Discount 1% Increase
(6.15%) Rate (7.15%) (8.15%)
Net pension liability $ 69,134,788 $ 34,737,777 $ 6,642,936
I. Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
CalPERS financial report.
72
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
J. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2021, the City recognized pension expense of $10,577,338. At June 30, 2021,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources.
Net difference between projected and actual earnings on
pension plan investments
Changes in assumptions
Differences between expected and actual experience
City contributions subsequent to the measurement date
Tot Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,883,979 $ -
284,268 488,532
4,094,815 36,724
11,219,252 -
$ 17,482,314 $ 525,256
At June 30, 2021, the total deferred outflow of resources, and deferred inflow of resources, and pension
expense related to the net pension liability was allocated as follows:
Governmental
Activities
Deferred outflows of resources $ 16,867,923
Deferred inflows of resources 506,798
Pension expense 10,205,613
Transit
Enterprise Fund
$ 614,391
18,458
371,725
Total
$ 17,482,314
525,256
10,577,338
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 $11,219,252 which will be recognized as a reduction of the net pension liability
during the fiscal year ending June 30, 2022. 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, 2020 measurement date, the expected
average remaining service lifetime is 4.4 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
2021 $ 1,130,615
2022 1,842,728
2023 1,789,746
2024 974,717
$ 5,737,806
73
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 13 - Post -Employment Health Benefits
A. Plan Description
The City has elected through resolution to provide healthcare benefits as single 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). The City has administrative involvement with the Plan,
and has included the trust, as well as Plan required disclosures within the City's ACFR. 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 Plan 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. However, as described above, the City has
administrative involvement in the Plan, and reports assets as a fiduciary component unit.
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 and is
not determined based on a level of pay. As a result of reporting a net OPEB asset, the Cash Subsidy
component of the annual required contribution for fiscal year 2020-2021 was negative $297,000. During the
year $961,682 in benefits was paid directly by the Trust to recipients.
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 $304,000 related to the fiscal year 2020-2021
implied subsidy payments which has been included in the contributions amount above.
74
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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 Service
0 to 5 years
5 to 9 years
10 to 14 years
15 years and greater
Vested Percentage
0%
50%
75%
100%
Employees hired after January 1, 2008, receive the PERS minimum and are not subject to a vesting schedule.
As of the June 30, 2021 measurement date, the following current and former employees were covered by
the benefit terms under the Plan:
Participants
Inactives currently receiving benefits
Inactives entitled to but not yet receiving benefits
Active employees
Total
D. Contributions
Total
128
41
427
596
The Plan and its contribution requirements are based on the actuarially determined contribution. For the
fiscal year ended June 30, 2021, the City's cash contributions were $334,000 in payments to the trust and
the estimated implied subsidy was $304,000 resulting in total contributions of $638,000. An additional
$961,682 in benefits was paid directly by the Trust to recipients during the year.
75
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
E. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following
assumptions:
Actuarial Valuation Date
Contribution Policy
Discount Rate
Municipal Bond Index
Long Term Return on Assets
General Inflation
Mortality, Retirement, Disability, Termination
Mortality Improvement
Salary Increases
Medical Trend
PEMHCA Minimum Increases
Healthcare participation at
Waived Retirees Re-election
Cap Increases
June 30, 2020
Pre -fund cash benefit Actuarially Determined
Contribution (ADC) with PARS Balance Fund Implied
subsidy benefit on pay-as-you-go basis
6.25% at June 30, 2021
4.17% at June 30, 2020
Expected City contributions projected to be sufficient to
pay all benefits from trust.
Bond Buyer 20-bond Index
2.16% at June 30, 2021
2.21% June 30, 2020
6.50%
2.75% per annum
CalPERS 1997-2015 Experience Study
Retirement mortality projected fully generational with
Scale MP-2019
Aggregate -3% per annum
Merit - CalPERS 1997-2015 Experience Study
Non -Medicare - 7.25% for 2021, decreasing to an
ultimate rate of 4.0% in 2076
Medicare - 6.3% for 2021, decreasing to an ultimate rate
of 4.0% in 2076
4.25% per annum
Hired < 1/1/08: 95%
Hired >_ 1/1/08: 60%
5% re-elect at 65 for pre-65
No increase on $1,016.58 cap
Medical trend for EE+1 cap
76
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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 6.5 percent. The asset allocation ranges for this objective are 0 percent to 20
percent cash source, 30 percent to 50 percent fixed income, and 50 percent to 70 percent equity.
The parameters for fixed income and equity securities based on asset allocation are as follows:
Authorized Investment Type
Fixed Income
Long-term fixed income
Intermediate -term fixed income
Short-term fixed income
High -yield portion of the Plan
Equity
Domestic large cap equity
Domestic mid -capitalization equity
Domestic small capitalization equity
International equity
Real estate
Cash and investments related to the Plan consist of the following:
Assets
Cash and Equivalents
U.S. Government Issues
Corporate Issues
Foreign Issues
Municipal Issues
Domestic Common Stocks
Foreign Stocks
Mutual Funds -Equity
Mutual Funds -Fixed Income
Total assets
Accrued Income
Total
Maximum
Minimum
Percentage of
Percentage of
Total Plan
Total Plan
Assets
Assets
20%
0%
50%
15%
15%
0%
8%
0%
50%
20%
15%
0%
20%
0%
20%
0%
10%
0%
Fair Value
$ 412,855
8,374,329
5,853,559
122,023
251,349
5,624,760
135,121
27,197,013
4,240,637
52, 211, 647
71,945
$ 52,283,592
77
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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
Allocation Expected Real
Asset Class PARS -Balance Rate of Return
Global Equity
58%
4.82%
Fixed Income
35%
1.47%
REITS
2%
3.76%
Cash
5%
0.06%
For the year ended June 30, 2021, the annual money weighted rate of return on investments was 26.10
percent. 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:
Issuer
Vanguard Growth and Income
Hartford Schroeders Emerging Markets
Dodge and Cox Stock Fund
H. Discount Rate
Investment Type
Mutual Funds -Equity
Mutual Funds -Equity
Mutual Funds -Equity
Amount Investments
$ 4,503,821
8.63%
$ 2,884,428
5.91%
$ 2,935,339
5.62%
The discount rate used to measure the total OPEB liability was 6.25 percent for the Plan, an increase from
4.17 percent in the prior year. The plan's fiduciary net position, plus expected City contributions, are
projected to be sufficient to make all projected future benefit payments of current active and inactive
employees.
78
I. Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
Total
OPEB
Liability
(a)
Balance at June 30, 2020 $ 58,839,227
Changes for the year
Service cost
Interest
Actual vs. expected experience
Assumption changes
Contributions - employer*
Net investment income
Benefit payments
Administrative expenses
Net Changes
Balance at June 30, 2021
2,154, 981
2,517,070
(5,463,407)
(17,074,375)
(1,265,682)
(19,131,413)
$ 39,707,814
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Fiduciary
Net Position
(b)
$ 42,169,576
638,000
10,837,685
(1,265,682)
(95,987)
10,114, 016
$ 52,283,592
Net
OPEB
Liability/(Asset)
(c) = (a) - (b)
$ 16,669,651
2,154, 981
2,517,070
(5,463,407)
(17, 074, 375 )
(638,000)
(10,837,685)
95,987
(29, 245,429 )
$ (12,575,778)
*Contributions to trust of $334,000 plus $304,000 implied subsidy benefit payments by the City.
The plan's fiduciary net position as a percentage of the total OPEB liability is 131.67%. Per the most recent
funding valuation dated June 30, 2020, the City's actuarial obligations are 118%funded.
J. Changes of Assumptions
For the June 30, 2021 measurement date, the discount rate was changed from 4.17% to 6.25%. Further, the
participation rate at retirement was decreased from 100%to 95%for those hired before 1/1/08. The waived
retiree reelection was decreased from 10% reelect at 65 to 5% reelect at 65. The mortality improvement
scale was updated to Scale MP-2019.
K. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability 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, 2021:
1% Decrease Current Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability (Asset) $ (6,569,916) $ (12,575,778) $ (17,469,714)
79
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2021:
Healthcare Trend Rate
1% Decrease Current Rate 1% Increase
Net OPEB Liability (Asset) $ (18,312,759) $ (12,575,778) $ (5,379,662)
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, California 92660.
N. OPEB Expense, Deferred Inflows of Resources, and Deferred Outflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OPEB credit of $1,706,942. As of fiscal year
ended June 30, 2021, the City reported deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows Inflows
Differences between expected and actual experience $ - $ 9,759,540
Changes of assumptions 7,978,940 15,753,465
Net difference between projected and actual earnings on plan investments - 5,935,563
Total $ 7,978,940 $ 31,448,568
At June 30, 2021, the total deferred outflow of resources, and deferred inflow of resources, and OPEB
expense related to the net OPEB liability (asset) was allocated as follows:
Governmental Transit
Activities Enterprise Fund Total
Deferred outflows of resources $ 7,787,445 $ 191,495 $ 7,978,940
Deferred inflows of resources 30,693,803 754,765 31,448,568
Net OPEB Liability (Asset) (12,273,965) (301,813) (12,575,778)
0
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Amounts reported as deferred inflows and outflows of resources are amortized in OPEB expense. The
amortization period differs depending on the source of the gain or loss. The amortization period is a 15-year
fixed period and all other amounts are amortized over the average expected remaining service lives of all
members that are provided with benefits. As of June 30, 2021 measurement date, the expected average
remaining service lifetime is 9 years. Deferred inflows and outflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Deferred
Fiscal Year
Outflows/(Inflows)
Ended June 30:
of Resources
2022
$ (3,752,300)
2023
(3,628,301)
2024
(3,609,521)
2025
(3,848,121)
2026
(2,091,920)
Thereafter
(6,539,465)
$ (23,469,628)
Note 14 - Individual Fund Disclosures— Deficit Fund Balance
Funds that have a deficit fund balance at June 30, 2021, are as follows:
Deficit Fund
Fund
Balance
Non -Major Governmental Funds
Gas Tax Special Revenue Fund
$ (9,037)
State Park Special Revenue Fund
(109,710)
Surface Transporatation Program Special Revenue Fund
(71,919)
Measure R Highway Improvement Special Revenue Fund
(15,781)
Measure H Homeless Initiatives Special Revenue Fund
(150,094)
Measure M ATP Special Revenue Fund
(7,945)
Measure A Safe Parks Special Revenue Fund
(194,138)
Miscellaneous Grants
(16,143)
Cooper St Parking CFD 2020-1 Capital Projects Fund
(277,320)
The non -major governmental fund deficits have corresponding deferred revenue and will be eliminated in the
next fiscal year.
The deficit in the Cooper Street Parking CFD 2020-1 Capital Projects Fund will be eliminated in Fiscal Year 2021-
22. The deficit was due to Los Angeles County Registrar -Recorder's Office delay in the recordation of the
boundary map as a result of Covid-19 pandemic closures. This delay resulted in the special tax levy, for Fiscal
Year 2020-21, not being permitted to be billed and collected until Fiscal Year 2021-22. The Special Tax for FY
2021-22 will also be levied and collected in Fiscal Year 2021-22 .
81
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 15 - Deferred Compensation Plan/Defined Contribution Plan
The City provides a 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 $19,500 per participant per year. Employee contributions to certain
plans are voluntary. During the year ended June 30, 2021, there were 1,388 participants in the plans. The City's
contributions totaled $214,459, and employees' contributions totaled $2,191,356.
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 $50,000 general liability deductible. All
general liability claims above $50,000 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 $1,617,995 for the general liability program and the workers' compensation
program (based on estimated wages).
At June 30, 2021, $1,683,996 was accrued by the City for general liability claims, and $4,726,650 was accrued for
workers' compensation claims and judgments. These accruals represent management's estimates of amounts to
be paid for incurred and reported claims, as well as incurred but not reported (IBNR) claims based upon past
experience and modified for current trends and information.
Changes in the reported claims liability since June 30, 2019, resulted in the following:
Claims liability as of June 30, 2019
Claims and changes in estimates during the year ended June 30, 2020
Claims and payments during the year ended June 30, 2020
Claims liability as of June 30, 2020
Claims and changes in estimates during the year ended June 30, 2021
Claims and payments during the year ended June 30, 2021
Claims liability as of June 30, 2021
$ 3,654,276
1,982,098
(735,265)
4,901,109
2,751,537
(1,242,000)
$ 6,410,646
82
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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 credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the
debt service is from the property assessments within the Golden Valley Assessment District. The principal
amount of debt outstanding at June 30, 2021 was $155,000.
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
Vermont/Everett Assessment District) were issued. The 1915 Vermont Drive/Everett Drive Bonds are not a
general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to
the payment of the bonds. The source of the debt service is from the property assessments within the
Vermont/Everett Assessment District. The principal amount of the debt outstanding at June 30, 2021 was
$315,000.
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, 2021 was $12,835,000.
D. Community Facilities District No. 2016-1 Vista Canyon
On February 13, 2020, $17,230,000 of Special Tax bonds were issued for Community Facilities District
No. 2016-1 (the Community Facilities District). 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, 2021 was $17,130,000.
83
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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. The Watershed Authority is reported as
a custodial fund in these financial statements. The Watershed Authority may request the City to make annual
contributions. For the year ended June 30, 2021, the City did not make any contributions. Separate financial
statements for the Santa Clarita Watershed Recreation and Conservancy Authority may 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). The SCPTA is reported as a custodial 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, 2021, the City contributed $336,011. Separate financial statements
for the Santa Clarita Public Television Authority are prepared biannually and may be obtained from the City's
administrative offices at 23920 Valencia Boulevard, Santa Clarita, California 91355.
84
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 20 - Commitments and Contingencies
A. Construction Commitments
The City has active construction projects as of June 30, 2021. At year-end, the City's commitments with
contractors for infrastructure projects are as follows:
Expenditures
Contract
to Date as of
Remaining
Project
Amount
June 30, 2021
Commitments
Bridge
$ 7,336,448
$ 6,043,597
$ 1,292,852
Median
1,068,908
961,470
107,438
Pavement
40,942,072
18,503,637
22,438,436
Traffic Signal
5,932,314
4,759,171
1,173,143
Trails
287,984
286,553
1,431
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, 2021, as follows:
General Fund
Other governmental funds
C. Contingencies
Amount
$ 11,595,790
44,951,515
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, 2021.
During 2020, the world-wide coronavirus pandemic impacted national and global economies. The City is
closely monitoring its operations, liquidity and capital resources and is actively working to minimize the
current and future impact of this unprecedented situation. As of the date of issuance of these financial
statements, the current and future full impact to the City is not known.
85
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
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, 2021, classified in the accompanying financial statements
as follows:
RDA Successor
Agency
Cash and investments pooled with City $ 710,775
Restricted:
Cash and investments 21,351
Cash and investments with fiscal agent 1,478,188
Total $ 2,210,314
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, 2021, $7,734,479 of these unallowable transfers remains due from the City to the Successor
Agency.
0
C. Long -Term Debt
RDA Successor Agency:
Loans from the City of Santa Clarita
Tax Allocation Bonds:
Refunding Series 2017
Less deferred amounts for
unamortized discounts
Total tax allocation bonds
Total
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Classification
Balance Balance Due Within Due More
July 1, 2020 Additions Deletions June 30, 2021 One Year Than One Year
$ 16,822,185 $
327,626 $ (1,004,823) $
16,144,988 $
- $ 16,144,988
32,360,000
- (850,000)
31,510,000
895,000 30,615,000
746,887
(33,660)
713,227
33,660 679,567
33,106,887
(883,660)
32,223,227
928,660 31,294,567
$ 49,929,072 $ 327,626 $ (1,888,483) $ 48,368,215 $ 928,660 $ 47,439,555
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 amount of
these notes is $8,914,740 and $7,230,248, respectively, which include unpaid accrued interest of $3,313,733
and $1,910,362, 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.
In February 2017, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2017, in the amount
of $34,800,000 to refund the Tax Allocation Bonds Series 2008 and Tax Allocation Bonds Housing Set -Aside.
The difference between the reacquisition price and carrying value of the refunded debt was reported as a
deferred outflow of resources and is amortized over the life of the refunded debt, as a component of
interest expense, and totaled $2,100,983 as of June 30, 2021. 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, 2021,
was $31,510,000.
Tax revenues deposited to the Redevelopment Property Tax Trust Fund maintained by the County of Los
Angeles, less (i) amounts payable by the State to the Successor Agency and (ii) unsubordinated Statutory
Pass -Through Amounts, have been pledged as an available source of repayment for the bonds.
87
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
If an Event of Default under the Indenture has occurred and is continuing, the Trustee may, with the prior
written consent of the Assured Guaranty Municipal Corp (the "Insurer"), or if requested in writing by the
Owners of the majority in aggregate principal amount of the Bonds then Outstanding, the Trustee shall, by
written notice to the Successor Agency, declare the principal of the Bonds, together with the accrued
interest thereon, to be due and payable immediately, and upon any such declaration the same shall become
immediately due and payable.
The Insurer insured the Bonds maturing on October 1 of the years 2022 through 2037, inclusive, and 2042
(the "Insured Bonds"). The maturity of Insured Bonds shall not be accelerated without the consent of the
Insurer and in the event the maturity of the Insured Bonds is accelerated, the Insurer may elect, in its sole
discretion, to pay accelerated principal and interest accrued, on such principal to the date of acceleration (to
the extent unpaid by the Successor Agency) and the Trustee shall be required to accept such amounts.
If there are claims upon the Insurance Policy and payments are made by the Insurer, the Successor Agency
agrees to pay to the Insurer (i) a sum equal to the total of all amounts paid by the Insurer under the
Insurance Policy (the "Insurer Advances"); and (ii) interest on such Insurer Advances from the date paid by
the Insurer until payment thereof in full, payable to the Insurer at the Late Payment Rate per annum
(collectively, the "Insurer Reimbursement Amounts"). Additionally, the Successor Agency shall repay any
draws under the Reserve Policy and pay all related reasonable expenses incurred by Insurer and shall pay
interest thereon from the date of payment by Insurer at the Late Payment Rate.
"Late Payment Rate" means the lesser of (a) the greater of (i) the per annum rate of interest, publicly
announced from time to time by JPMorgan Chase Bank at its principal office in The City of New York, as its
prime or base lending rate (any change in such rate of interest to be effective on the date such change is
announced by JPMorgan Chase Bank) plus 3%, and (ii) the then applicable highest rate of interest on the
Insured Bonds (or Bonds for the Reserve Policy) and (b) the maximum rate permissible under applicable
usury or similar laws limiting interest rates.
The annual debt service requirements on the bonds are as follows:
Year Ending June 30, Principal
2022
$ 895,000
2023
935,000
2024
985,000
2025
1,030,000
2026
1,090,000
2027-2031
6,180,000
2032-2036
7,420,000
2037-2041
8,905,000
2042-2043
4,070,000
Interest Total
$ 1,244,418
1,198,669
1,150,669
1,100, 294
1,047,294
4,503,606
3,251,303
1,722,188
164,400
$ 2,139,418
2,133,669
2,135,669
2,130, 294
2,137, 294
10,683,606
10,671,303
10,627,188
4,234,400
$ 31,510,000 $ 15,382,841 $ 46,892,841
W-1
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
D. Deficit Net Position
As of June 30, 2021, the RDA Successor Agency Private -Purpose Trust Fund had a deficit net position of
$36,628,192. This will be reduced with future receipt of distributions from the Redevelopment Property Tax
Trust Fund from the County.
Note 22 - Excess Appropriations
For the year ended June 30, 2021, expenditures exceed appropriations in the following categories
(legal level of budgetary control) within the respective fund below:
Fund
Non -Major Governmental Funds:
Street Lighting District Special Revenue Fund
Operating - Personnel
Traffic Safety Special Revenue Fund
Transfers Out
Public Education and Government Special Revenue Fund
Operating - Operating
American Rescue Plan Special Revenue Fund
Operating - Personnel
Transfers Out
Measure W Safe Clean Water Special Revenue Fund
Operating - Personnel
Tourism Marketing District Special Revenue Fund
Operating - Personnel
Supplemental Law Grant Special Revenue Fund
Operating
Measure A Safe Parks Special Revenue Fund
Transers Out
Excess
Expenditures
Over
Appropriations Expenditures Appropriations
$ 233,763
$ 233,907
$ (144)
(550,000)
(558,862)
(8,862)
201,742
209,832
(8,090)
-
5,108
(5,108)
-
(9,474,280)
(9,474,280)
132,735
134,172
(1,437)
31,337
32,485
(1,148)
479,544
486,898
(7,354)
(179,836)
(194,251)
(14,415)
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
Note 23 - Restatement
As of July 1, 2020, the City adopted GASB Statement No. 84, Fiduciary Activities (GASB 84). As a result of the
restatement, the City presents certain funds as custodial funds. These funds were previously presented as
agency funds. These new custodial funds display assets and liabilities, with the difference reported as net
position (deficit). The following table describes the effects of the implementation of GASB 84 on previously
reported asset and liability accounts, as well the beginning net position (deficit) for each fund:
GASB 84 Restatement
Fiduciary Funds
Assessment District No. 92-2
Due to external parties
Net Position (deficit)
Assessment District No.99-1
Due to external parties
Net Position (deficit)
Community Facilities District No 2002-1
Due to external parties
Net Position (deficit)
Community Facilities District No 2016-1
Due to external parties
Net Position (deficit)
Santa Clarita Watershed and Recreation Conservancy Authority
Capital Assets - Land
Capital Assets - Building, net of accumulated depreciation
Due to external parties
Net Position (deficit)
Santa Clarita Public Television Authority
Due to external parties
Net Position (deficit)
Custodial Funds (previously Agency Funds) - Total
Capital Assets - Land
Capital Assets - Building, net of accumulated depreciation
Due to external parties
Net Position (deficit)
June 30, 2020
Previously
July 1, 2020
Presented
Restatement
Restated
$ 278,566
$ (53,566)
225,000
-
53,566
53,566
175,919
199,081
375,000
-
(199,081)
(199,081)
2,701,539
10, 738,461
13,440,000
-
(10,738,461)
(10,738,461)
16,616,395
2,531,388
19,147,783
-
(2,531,388)
(2,531,388)
9,937,976 (9,937,976) -
67,728 (67,728) -
10,018,022 (10,018,022) -
- 12,318 12,318
89
(89) -
-
89 89
9,937,976
(9,937,976) -
67,728
(67,728) -
29,790,530
3,397,253 33,187,783
-
(13,402,957) (13,402,957)
a
Effects of Restatements
Fiduciary Funds
Assessment District No. 92-2
Net Position (deficit)
Assessment District No.99-1
Net Position (deficit)
Community Facilities District No 2002-1
Net Position (deficit)
Community Facilities District No 2016-1
Net Position (deficit)
Santa Clarita Watershed and Recreation Conservancy Authority
Net Position (deficit)
Santa Clarita Public Television Authority
Net Position (deficit)
Custodial Funds - Total
Net Position (deficit)
City of Santa Clarita, California
Notes to Financial Statements
June 30, 2021
June 30, 2020
Previously
July 1, 2020
Presented Restatement
Restated
$ - $ 53,566
$ 53,566
- (199,081)
(199,081)
- (10,738,461)
(10,738,461)
- (2,531,388)
(2,531,388)
- 12,318 12,318
- 89 89
- (13,402,957) (13,402,957)
91
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92
Required Supplementary Information
This page left blank intentionally.
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Taxes
$ 84,197,786
$ 89,479,675
$ 97,704,484
$ 8,224,809
Licenses and permits
7,632,820
9,771,235
11,498,980
1,727,745
Intergovernmental
180,389
1,653,944
270,827
(1,383,117)
Charges for services
7,552,492
5,366,528
6,345,677
979,149
Investment income
2,449,478
2,449,478
128,498
(2,320,980)
Fines and forfeitures
981,000
634,650
621,214
(13,436)
Other revenue
7,230,809
8,150,403
1,359,092
(6,791,311)
Total revenues
110,224,774
117,505,913
117,928,772
422,859
Expenditures:
Operating:
Personnel
45,040,988
47,151,977
40,933,746
6,218,231
Operating
46,952,067
47,457,393
38,665,320
8,792,073
Capital outlay
2,149
16,817
13,788
3,029
Capital Improvement Projects:
Personnel
-
-
194,356
(194,356)
Operating
1,571,077
48,148,854
38,701,207
9,447,647
Capital outlay
-
17,774,875
14,580,324
3,194,551
Total expenditures 93,566,281 160,549,915 133,088,741 27,461,174
Excess (deficiency) of revenues
over (under) expenditures
16,658,493
(43,044,002)
(15,159,969)
27,884,033
Other Financing Sources (Uses):
Capital leases acquired
-
-
164,970
164,970
Transfers in
2,326,024
17,506,566
26,626,984
9,120,418
Transfers out
(12,120,664)
(15,582,586)
(14,079,083)
1,503,503
Total other financing sources (uses)
(9,794,640)
1,923,980
12,712,871
10,788,891
Net Change in Fund Balances
$ 6,863,853
$ (41,120,022)
(2,447,098) $
38,672,924
Fund Balance at Beginning of Year
190,441,237
Fund Balance at End of Year
$ 187,994,139
See Notes to the Required Supplementary Information 93
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, 2021
Revenues:
Investment income
Developer fees
Other revenue
Total revenues
Expenditures:
Operating:
Personnel
Operating
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net Change in Fund Balances
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
$ 459,262 $
459,262 $
395,138
$ (64,124)
-
1,817,440
5,435,844
3,618,404
368,724
368,724
368,724
-
827,986
2,645,426
6,199,706
3,554,280
89,688
94,175
86,633
7,542
549,298
549,300
501,212
48,088
-
-
48,048
(48,048)
4,167,065
7,832,826
1,869,422
5,963,404
4,806,051
8,476,300
2,505,315
5,970,985
(3,978,065)
(5,830,874)
3,694,391
9,525,265
$ (3,978,065) $ (5,830,874)
3,694,391 $ 9,525,265
3,675,228
$ 7,369,619
See Notes to the Required Supplementary Information 94
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, 2021
Revenues:
Investment income (loss)
Developerfees
Total revenues
Expenditures:
Operating:
Operating
Capital Improvement Projects:
Operating
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other Financing Sources (Uses):
Transfer out
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 72,917 $ 72,917 $ 37,723 $ (35,194)
650,000 3,467,918 3,534,195 66,277
722,917 3,540,835 3,571,918 31,083
- 5,621,653 5,621,653
857,000 2,617,593 1,309,285 1,308,308
857,000 8,239,246 6,930,938 1,308,308
(134,083) (4,698,411) (3,359,020) 1,339,391
(100,000) (130,542) (69,458) 61,084
$ (234,083) $ (4,828,953) (3,428,478) $ 1,400,475
5,864,801
$ 2,436,323
See Notes to the Required Supplementary Information 95
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, 2021
Revenues:
Taxes
Charges for services
Investment income (loss)
Other revenue
Total revenues
Expenditures:
Operating:
Personnel
Operating
Capital outlay
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other Financing Sources (Uses):
Transfer in
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted
Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
$ 8,000,000
$ 8,458,562
$ 8,561,137
$ 102,575
97,068
93,568
93,786
218
-
-
2,770
2,770
511,829
92,710
144,556
51,846
8,608,897
8,644,840
8,802,249
157,409
4,110,432
3,885,740
3,546,815
338,925
2,674,508
3,006,591
2,748,738
257,853
-
66,916
2,156
64,760
-
-
8,649
(8,649)
152,000
251,836
129,081
122,755
6,936,940
7,211,083
6,435,439
775,644
1,671,957
1,433,757
2,366,810
933,053
-
-
98,500
98,500
$ 1,671,957 $ 1,433,757 2,465,310 $ 1,031,553
(830,155)
$ 1,635,155
See Notes to the Required Supplementary Information 96
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, 2021
Revenues:
Taxes
Special assessments
Investment income (loss)
Total revenues
Expenditures:
Operating:
Personnel
Operating
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfer in
Transfer out
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 248,977
$ 248,977
$ 261,281 $
12,304
13,626,063
13,537,654
13,680,862
143,208
405,421
405,421
(25,964)
(431,385)
14,280,461
14,192,052
13,916,179
(275,873)
1,046,485 1,008,789 953,593 55,196
11,087,429 12,235,522 11,791,775 443,747
- - 131,388 (131,388)
664,000 3,143,584 2,271,769 871,815
12,797,914 16,387,894 15,148,525 1,239,369
1,482,547 (2,195,842) (1,232,346) 963,496
10,000 10,000 10,000 -
(832,265) (275,935) (275,935) -
(822,265) (265,935) (265,935) -
$ 660,282 $ (2,461,777) (1,498,281) $ 963,496
$ 23,228,307
See Notes to the Required Supplementary Information 97
City of Santa Clarita, California
Schedule of Changes in the Net OPEB Liability and Related Ratios
For the Year Ended June 30, 2021
2021 2020 2019 2018
Changes in Total OPEB Liability
Service Cost
$
2,154,981
$
1,610,969
$
1,701,975
$
1,711,000
Interest
2,517,070
2,505,286
2,823,979
2,633,073
Actual vs. expected experience
(5,463,407)
-
(7,334,973)
-
Assumption changes
(17,074,375)
8,477,248
2,078,284
(1,071,000)
Benefit payments
(1,265,682)
(1,202,903)
(1,093,711)
(1,054,000)
Net Changes
(19,131,413)
11,390,600
(1,824,446)
2,219,073
Total OPEB Liability (beginning of year)
58,839,227
47,448,627
49,273,073
47,054,000
Total OPEB Liability (end of year)
$
39,707,814
$
58,839,227
$
47,448,627
$
49,273,073
Plan Fiduciary Net Position
Contribution -employer
$
638,000
$
636,000
$
923,250
$
1,227,000
Net investment income
10,837,685
1,475,065
2,618,633
2,963,587
Benefit payments
(1,265,682)
(1,202,903)
(1,093,711)
(1,054,041)
Administrative expense
(95,987)
(77,123)
(73,935)
(146,319)
Net Changes
10,114,016
831,039
2,374,237
2,990,227
Plan Fiduciary Net Position (beginning of year)
42,169,576
41,338,537
38,964,300
35,974,073
Plan Fiduciary Net Position (end of year)
$
52,283,592
$
42,169,576
$
41,338,537
$
38,964,300
Net OPEB Liability (Asset) - ending (a)-(b)
$
(12,575,778)
$
16,669,651
$
6,110,090
$
10,308,773
Plan fiduciary net position as a percentage of the total OPEB liability
131.67%
71.67%
87.12%
79.08%
Covered employee payroll*
$
35,631,538
$
38,295,087
$
33,895,751
$
30,634,000
Net OPEB liability (asset) as a percentage of covered -employee payroll
-35.29%
43.53%
18.03%
33.65%
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 (Measurement Date).
Fiscal Year Ended June 30
Actuarially Determined Contribution (ADC)*
Contributions in relation to the actuarially determined contribution**
Contribution deficiency/(excess)
Covered -employee payroll***
Contribution as a percentage of covered -employee payroll
Notes to Schedule:
* Contributions to the plan are made on an Ad Hoc basis.
**Actual contribution, including implied subsidy
***For the 12 months period ending on June 30 (fiscal year end)
Methods and Assumptions for 2020/21 Actuarially Determined
Contributions
Valuation Date
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation
Medical Trend
City of Santa Clarita, California
Schedule of Contributions — OPEB
Last Ten Years*
For the Year Ended June 30, 2021
2021
2020
2019
2018
$ 517,000
$
1,112,000
$
1,127,000
$
1,755,000
638,000
636,000
923,250
1,227,000
$ (121,000)
$
476,000
$
203,750
$
528,000
$ 35,631,538
$
38,295,087
$
33,895,751
$
30,634,000
1.79%
1.66%
2.72%
4.01%
June 30, 2020
Entry Age Normal, Level Percentage of Payroll
Level percent of pay
13-year fixed period for 2020/21
Investment gains and losses spread over 5-year rolling
6.50%
2.75%
Non -Medicare - 7.25% for 2021, decreasing to an ultimate
rate of 4.0% in 2076
Medicare - 6.3% for 2021, decreasing to an ultimate rate of
4.0% in 2076
Mortality CalPERS 1997-2015 experience study
Mortality Improvement Retirement mortality projected fully generational with
Scale MP-2019
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.
City of Santa Clarita, California
Schedule of Money Weighted Rate of Return — OPEB
Last Ten Years*
As of the Fiscal Year Ended June 30, 2021
Last Ten Years*
2021 2020 2019 2018 2017
Annual money -weighted rate of return -
net of investment expense 26.10% 3.78% 6.94% 8.26%
Notes to Schedule
*Fiscal year 2017 was the first year of GASB 74 implementation, therefore, only four years are shown.
12.81%
100
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, 2021
Measurement Date
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
Total Pension Liability
Service cost
$ 5,350,001
$ 5,104,511
$ 4,920,377
$ 4,921,221
$ 4,409,399
$ 4,418,053
$ 4,462,544
Interest
15203,985
14,120,352
13,037,446
12,166,752
11,315,207
10,443,680
9,588,693
Difference between Expected and Actual Experience
2:498,828
3,019,582
1,709,604
(1,505,660)
(305,665)
416,626
-
Changes ofAssumptions
-
-
(1,615,911)
11,654,992
-
(3,009,808)
-
Benefit Payments, Including Refunds of Employee Contributions
(7,134,971)
(6,246,516)
(5,601,353)
(4,406,046)
(3,347,335)
(2,971,092)
(2,561,655)
Net Change in Total Pension Liability
15,917,843
15,997,929
12,450,163
22,831,259
12,071,606
9,297,459
11,489,582
Total Pension Liability - Beginning
211,036,792
195,038,863
182,588,700
159,757,441
147,685,835
138,388,376
126,898,794
Total Pension Liability- Ending (a)
$ 226,954,635
$ 211,036,792
$ 195,038,863
$ 182,588,700
$ 159,757,441
$ 147,685,835
$ 138,388,376
Plan Fiduciary Net Postion
Contributions - Employer
Contributions - Employee
Net Investment Income
Administrative expenses
Benefit Payments, Including Refunds of Employee Contributions
Other Miscellaneous Income/(Expense)
Plan to Plan Resource Movement
Net Change in Fiduciary Net Position
Plan Fiduciary Net Postition - Beginning
Plan Fiduciary Net Postion - Ending (b)
Net pension liability - ending (a) - (b)
Plan Fiduciary Net Position as a Percentage ofthe Total Pension Liability
$ 15,978,300 12,500,090 $ 9,664,637 $ 4,484,866 $ 3,959,503 $ 3,740,145 $ 3,562,246
2,530,805 2,478,266 2,203,916 2,224,721 2,252,522 2,164,107 2,339,435
8,957,955 10,255,487 11,713,900 13,510,656 622,282 2,506,239 16,243,165
(242,657) (109,362) (211,742) (177,534) (71,202) (131,529) -
(7,134,971) (6,246,516) (5,601,353) (4,406,046) (3,347,335) (2,971,092) (2,561,655)
- 355 (402,101) - - - -
(355) 9,685
20,089,432 18,878,320 17,366,902 15,636,663 3,415,770 5,317,555 19,583,191
172,127,426 153,249,106 135,882,204 120,245,541 116,829,771 111,512,216 91,929,025
$ 192,216,858 $ 172,127,426 $ 153,249,106 $ 135,882,204 $ 120,245,541 $ 116,829,771 $ 111,512,216
$ 34,737,777 $ 38,909,366 $ 41,789,757 $ 46,706,496 $ 39,511,900 $ 30,856,064 $ 26,876,160
84.69% 81.56% 78.57% 74.42% 75.27% 79.11% 80.58%
Covered Payroll $ 34,882,519 $ 33,054,867 $ 29,655,553 $ 29,966,168 $ 27,934,377 $ 27,234,699 $ 26,879,556
Plan Net Pension Liability as a Percentage of Covered Payroll 99.59% 117.71% 139.46% 155.86% 141.45% 113.30% 99.99%
* only 8 years shown as GASB 68 was implemented effective June 30, 2014.
101
City of Santa Clarita, California
Schedule of City Contributions — Pensions
Last Ten Years*
As of the Fiscal Year Ended June 30, 2021
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
June 30, 2017
June 30, 2016
June 30, 2015
June 30, 2014
Actuarially determined contribution
$ 6,190,238
$ 6,323,890
$ 5,637,826
$ 4,662,191
$ 4,484,140
$ 3,958,892
$ 3,740,138
$ 3,562,246
Contributions in relation tothe actuarially determined contribution
(11,219,252)
(15,976,871)
(12,499,992)
(9,662,191)
(4,484,140)
(3,958,892)
(3,740,138)
(3,562,246)
Contribution deficiency (excess)
$ (5,029,014)
$ (9,652,981)
$ (6,862,166)
$ (5,000,000)
$
$
$
$
Covered Payroll
$ 35,631,558
$ 34,882,519
$ 33,054,867
$ 29,655,553
$ 29,966,168
$ 27,934,377
$ 27,234,699
$ 26,879,556
Contributions as a Percentage of Covered Payroll
31.49%
45.80%
37.82%
32.58%
14.96%
14.17%
13.73%
13.25%
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding
valuation report.
Actuarial Cost method
Entry Age Normal
Amortization Method
Level Percentage of Pay
Asset Valuation Method
Fair Value of Asset. For Details, see June 30, 2017 Funding Valuation Report.
Inflation
2.63%
Salary increases
Varies by Entry Age and Service
Payroll growth
2.88%
Investment Rate of Return
7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
Retirement Age
The probabilities of Retirement are based on the 2017 CalPERS Experience Study forthe period from 1997
to 2015.
Mortality
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997
to 2015. Pre -retirement and Post -retirement mortality rates include 15 years of projected mortality
improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
* only 8 years shown as GASB 68 was implemented effective June 30, 2014
102
City of Santa Clarita, California
Notes to Required Supplementary Information
June 30, 2021
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. The proposed budget is presented to the City Council for review.
The City Council holds public hearings, and a final budget must be 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.
103
City of Santa Clarita, California
Note to Required Supplementary Information
June 30, 2021
For the year ended June 30, 2021, expenditures exceeded appropriations in the following categories (legal level
of budgetary control) of the respective funds:
Fund
Non -Major Governmental Funds:
Street Lighting District Special Revenue Fund
Operating - Personnel
Traffic Safety Special Revenue Fund
Transfers Out
Public Education and Government Special Revenue Fund
Operating - Operating
American Rescue Plan Special Revenue Fund
Operating - Personnel
Transfers Out
Measure W Safe Clean Water Special Revenue Fund
Operating - Personnel
Tourism Marketing District Special Revenue Fund
Operating - Personnel
Supplemental Law Grant Special Revenue Fund
Operating
Measure A Safe Parks Special Revenue Fund
Transers Out
Excess
Expenditures
Over
Appropriations
Expenditures
Appropriations
$ 233,763
$ 233,907
$ (144)
(550,000)
(558,862)
(8,862)
201,742
209,832
(8,090)
-
5,108
(5,108)
-
(9,474,280)
(9,474,280)
132,735
134,172
(1,437)
31,337
32,485
(1,148)
479,544
486,898
(7,354)
(179,836)
(194,251)
(14,415)
104
Supplementary Information
City of Santa Clarita, California
Description of Non -Major Governmental Funds
As of and For the Year Ended June 30, 2021
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.
105
City of Santa Clarita, California
Non -Major Governmental Funds (Continued)
As of and For the Year Ended June 30, 2021
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.
Bureau of Justice Assistance (BJA) Law Enforcement — To account for receipts and disbursements for the BJA
law enforcement grant restricted for police department programs.
Supplemental Law Grant — To account for receipts and disbursements for the supplemental law grant restricted
for police department programs.
HOME — To account for receipts and disbursements for the activity for the HOME grant program restricted to
expand the supply of affordable housing for very low- and low-income families.
Library Facilities Fees —To account for monies received from the library facilities developer fees, which are
restricted for use on library facilities.
Public Education and Government (PEG) — 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.
American Rescue Plan Fund (ARPA) - To account for the American Rescue Plan Act (ARPA) federal funding
received to respond to the COVID-19 public health emergency, address negative economic impacts cause by the
pandemic, replace lost revenue, and invest in infrastructure.
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.
Measure R Highway Improvement Program — To account for the half -cent sales tax measure approved by LA
County voters in November 2008 to fund carpool, highways and other highway related improvements.
Measure H Homeless Initiatives Fund - To account for the one -quarter of a cent sales tax approved by Los
Angeles County voters in 2017 for the specific purpose of preventing and combatting homelessness and for
funding homeless services and short-term housing.
Measure M ATP - To account for the half -cent sales tax measure approved by LA County voters in November
2016 to fund active transportation projects throughout Los Angeles County.
106
City of Santa Clarita, California
Non -Major Governmental Funds (Continued)
As of and For the Year Ended June 30, 2021
Measure A Safe Clean Neighborhood Parks Entitlement (Measure A Safe Parks) - The Clean Safe Neighborhood
Parks and Beaches Measure was passed by the voters of Los Angeles in November of 2016. Entitlement funds
are distributed to cities on a per capital basis. The measure provides local funding from an annual parcel tax of
1.5 cents per square foot of building floor area for parks and open space.
Measure W Safe Clean Water - To account for the special tax of 2.5 cents per square feet of impermeable area
for parcels located in Los Angeles County Flood Control District that Los Angeles County voters approved
November 2018 to pay for projects, infrastructure, and programs to capture, treat, and recycle rainwater.
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).
OSPD (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.
Areawide - To account for receipts and disbursements for the City's Areawide Beautification Zone operations
which is supported through special benefit assessments levied on individual parcels authorized by the Landscape
and Lighting Act of 1972. Funds are restricted for specific use on costs associated with the maintenance of
landscape, hardscape and ornamental improvements, park facilities, tree pruning, as well as utility costs such as
water and electricity. As provided for by the Landscape and Lighting Act, LIVID funds may also be used for the
construction and/or installation of capital improvements.
Cooper Street Parking Structure CFD 2020-1- To account for special tax revenue collected for the operation and
maintenance of the City owned public parking garage on Cooper Street in the Vista Canyon development area.
Vista Canyon (VC) Wastewater Standby District — To account for the wastewater standby assessment and sewer
rate revenues. Funds are restricted to pay for the annual maintenance and operational costs of the self-
contained Recycled Water Factory.
107
City of Santa Clarita, California
Non -Major Governmental Funds (Continued)
As of and For the Year Ended June 30, 2021
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.
Civic Arts Projects — To account for Civic Art Allocations which represent an amount equal to 1 percent of the
eligible cost of design services and construction of City Capital Improvement Projects. If use of all, or a portion,
of a project's funding is prohibited by the funding source for the purposes of the Civic Art Program, the Civic Art
Allocation will reflect only that portion of the funding that is eligible for application to the City of Santa Clarita
Civic Art Program.
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 and bond proceeds held by the City's trustee. Budgetary control includes items
restricted by the bond indentures.
108
City of Santa Clarita, California
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Special
Bikeway
Gas Tax
Proposition A
Assessment
Assets
Cash and investments
$
43,141
$
60,009
$ 11,113,348
$
3,527,822
Receivables
Accounts, net
-
7,876
-
19,571
Interest
31
-
23,643
7,410
Taxes
-
-
-
10,682
Loans
-
-
-
-
Prepaid costs
-
-
-
-
Due from other governments
-
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total assets
$
43,172
$
67,885
$ 11,136,991
$
3,565,485
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable and accrued liabilities
$
41,734
$
76,922
$ 329,920
$
13,928
Due to other governments
-
-
-
-
Due to other funds
-
-
-
-
Total liabilities
41,734
76,922
329,920
13,928
Deferred Inflows of Resources
Unavailable revenues
-
-
-
-
Total deferred inflows of resources
-
-
-
-
Fund balances (deficit)
Nonspendable
-
-
-
-
Restricted
1,438
-
10,807,071
3,551,557
Assigned
-
-
-
-
Unassigned
-
(9,037)
-
-
Total fund balances (deficit)
1,438
(9,037)
10,807,071
3,551,557
Total liabilities, deferred inflows of
resources, and fund balances
$
43,172
$
67,885
$ 11,136,991
$
3,565,485
109
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Street
S131 Road
Lighting
Measure M
Repair and
District
Local Return
Activity
State Park TDA Traffic Safety CDBG
$ 12,308,539
$ 6,966,744
$ 3,879,493
$ - $ - $ - $ 7,589
112,718
-
-
- - - -
27,376
15,319
9,027
- - - 382
149,334
-
-
- - 44,901 -
-
-
-
- - - 104,175
-
-
749,743
860 8,571,529 - 201,110
1,866,767
-
-
- - - -
$ 14,464,734 $ 6,982,063 $ 4,638,263 $ 860 $ 8,571,529 $ 44,901 $ 313,256
$ 272,355 $ 142,798 $ - $ - $ 450,435 $ - $ 198,229
- - - 110,570 54,644 44,901 -
272,355 142,798 - 110,570 505,079 44,901 198,229
- - - - - - 104,175
1 nil 17C
14,192,379 6,839,265 4,638,263 - 8,066,450 - 10,852
- - - (109,710) - - -
14,192,379 6,839,265 4,638,263 (109,710) 8,066,450 - 10,852
$ 14,464,734 $ 6,982,063 $ 4,638,263 $ 860 $ 8,571,529 $ 44,901 $ 313,256
(Continued)
110
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Surface
Transportation
BJA Law
AQMD
Stormwater
Program
Enforcement
Assets
Cash and investments
$
31,808
$
4,079,515
$
-
$
2
Receivables
Accounts, net
-
1,338
-
-
Interest
11
8,210
-
-
Taxes
-
65,564
-
-
Loans
-
-
-
-
Prepaid costs
-
-
-
-
Due from other governments
192,665
-
94,867
18,983
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total assets
$
224,484
$
4,154,627
$
94,867
$
18,985
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable and accrued liabilities
$
46,106
$
268,677
$
1,397
$
520
Due to other governments
-
-
-
-
Due to other funds
-
-
104,370
18,463
Total liabilities
46,106
268,677
105,767
18,983
Deferred Inflows of Resources
Unavailable revenues
-
-
61,019
-
Total deferred inflows of resources
-
-
61,019
-
Fund balances (deficit)
Nonspendable
-
-
-
-
Restricted
178,378
3,885,950
-
2
Assigned
-
-
-
-
Unassigned
-
-
(71,919)
-
Total fund balances (deficit)
178,378
3,885,950
(71,919)
2
Total liabilities, deferred inflows of
resources, and fund balances
$
224,484
$
4,154,627
$
94,867
$
18,985
111
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Public
Supplemental
Library
Education and
American
Law Grant
HOME
Facilities Fees
Government
Proposition C
Rescue Plan Federal Grants
$ 344,613
$ 344,394
$ 3,864,709
$ 485,339
$ 10,361,747
$ 7,995,097 $ 7,232,733
-
13,434
-
-
-
- -
641
729
8,176
1,024
22,819
- 14,942
-
-
-
117,966
-
- -
-
2,298,999
-
-
-
- -
-
-
-
-
4,245,973
- 1,102,033
$ 345,254
$ 2,657,556 $ 3,872,885 $
604,329 $ 14,630,539 $
7,995,097 $
8,349,708
$ 40,575
$ - $ - $
- $ 834,678 $
38,872 $
421,133
-
- -
- 3,415,171
-
-
40,575
- -
- 4,249,849
38,872
421,133
-
2,298,999 -
- 4,245,973
7,956,225
7,121,888
-
2,298,999 -
- 4,245,973
7,956,225
7,121,888
304,679
358,557 3,872,885
604,329 6,134,717
-
806,687
304,679
358,557 3,872,885
-
806,687
604,329 6,134,717
$ 345,254 $ 2,657,556 $ 3,872,885 $ 604,329 $ 14,630,539 $ 7,995,097 $ 8,349,708
(Continued)
112
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Measure R Measure H
Highway Homeless
Measure R Improvement Initiatives Measure M ATP
Assets
Cash and investments $ 3,226,760 $ - $ - $ -
Receivables
Accounts, net - - - -
Interest 6,781 - - -
Taxes - - - -
Loans - - - -
Prepaid costs - - - -
Due from other governments - 15,783 150,094 19,563
Restricted assets:
Cash and investments - - - -
Cash and investments with fiscal agents - - - -
Total assets
$ 3,233,541 $
15,783 $
150,094 $
19,563
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable and accrued liabilities
$ 346,534 $
55 $
392 $
3,135
Due to other governments
-
-
-
-
Due to other funds
-
15,727
149,702
16,428
Total liabilities
346,534
15,782
150,094
19,563
Deferred Inflows of Resources
Unavailable revenues
-
15,782
150,094
7,945
Total deferred inflows of resources
-
15,782
150,094
7,945
Fund balances (deficit)
Nonspendable
-
-
-
-
Restricted
2,887,007
-
-
Assigned
-
-
-
-
Unassigned
-
(15,781)
(150,094)
(7,945)
Total fund balances (deficit)
2,887,007
(15,781)
(150,094)
(7,945)
Total liabilities, deferred inflows of
resources, and fund balances
$ 3,233,541 $
15,783 $
150,094 $
19,563
113
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Measure W Tourism Housing
Measure A Safe Clean Marketing Miscellaneous Park Successor
Safe Parks Water District OSPD Grants Dedication Agency
$ 81 $ 1,505,176 $ 419,265 $ 6,551,135 $ - $ 4,706,110 $ 742,836
- - - - (8) - -
31 3,138 1,953 15,490 - 8,587 1,567
- 3,250,000 95,398 45,567 - - -
- - - - 17,716 - -
546,121 - - - 397,910 - -
- - - - - - 206,386
$ 546,233 $ 4,758,314 $ 516,616 $ 6,612,192 $ 415,618 $ 4,714,697 $ 950,789
$ - $ 6,248 $ 43,719 $ 34,164 $ 129,305 $ 662,118 $ -
- - - - - - 34,479
546,120 - - - 76,659 - -
546,120 6,248 43,719 34,164 205,964 662,118 34,479
194,251 3,250,000 - - 225,797 - -
194,251 3,250,000 - - 225,797 - -
- - - - 17,716 - -
- 1,502,066 472,897 6,578,028 - 4,052,579 916,310
(194,138) - - - (33,859) - -
(194,138) 1,502,066 472,897 6,578,028 (16,143) 4,052,579 916,310
$ 546,233 $ 4,758,314 $ 516,616 $ 6,612,192 $ 415,618 $ 4,714,697 $ 950,789
(Continued)
114
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Special Revenue Funds
Tourism
Cooper St
VC
Marketing
Parking
Wastewater
Bureau
Areawide
CFD 2020-1
Standby District
Assets
Cash and investments
$
69,892
$
5,720,656
$ (1,326)
$ 2,655,198
Receivables
Accounts, net
-
21,151
-
-
Interest
147
-
(592)
5,600
Taxes
-
119,532
-
36,228
Loans
-
-
-
-
Prepaid costs
-
79,664
-
-
Due from other governments
-
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total assets
$
70,039
$
5,941,003
(1,918)
$ 2,697,026
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable and accrued liabilities
$
-
$
511,955
$ 247,196
$ 772
Due to other governments
-
-
-
-
Due to other funds
-
-
28,206
-
Total liabilities
-
511,955
275,402
772
Deferred Inflows of Resources
Unavailable revenues
-
-
-
-
Total deferred inflows of resources
-
-
-
-
Fund balances (deficit)
Nonspendable
-
79,664
-
-
Restricted
70,039
5,349,384
-
2,696,254
Assigned
-
-
-
-
Unassigned
-
-
(277,320)
-
Total fund balances (deficit)
70,039
5,429,048
(277,320)
2,696,254
Total liabilities, deferred inflows of
resources, and fund balances
$
70,039
$
5,941,003
(1,918)
$ 2,697,026
115
City of Santa Clarita, California
Combining Balance Sheet (Continued)
Non -Major Governmental Funds
June 30, 2021
Debt Service
Capital Projects Funds
Fund
General Public
Public
Total Non -major
Capital Financing Civic
Financing
Governmental
Projects Authority Arts Projects
Authority
Funds
$ 887,092 $ 10 $ 354,263
$ 3,382
$ 99,487,172
- - -
-
176,080
- - 663
-
183,105
- - -
-
3,935,172
- - -
-
2,403,174
- - -
-
97,380
- - -
-
16,307,234
- - -
-
2,073,153
- - -
610,657
610,657
$ 887,092 $ 10 $ 354,926
$ 614,039
$ 125,273,127
$ 528,298 $ - $ - $ 10,644 $ 5,702,814
- - - - 34,479
- - - - 4,580,961
528,298 - - 10,644 10,318,254
- - - - 25,632,148
- - - - 25,632,148
- - - - 97,380
- - - 603,395 89,381,418
358,794 10 354,926 - 713,730
- - - - (869,803)
358,794 10 354,926 603,395 89,322,725
$ 887,092 $ 10 $ 354,926 $ 614,039 $ 125,273,127
116
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, 2021
Special Revenue Funds
Special
Bikeway
Gas Tax
Proposition A
Assessment
Revenues
Taxes
$ -
$ -
$ -
-
Special assessments
-
-
-
618,684
Intergovernmental
259,188
4,789,933
4,388,257
-
Charges for services
-
-
-
-
Investment income (loss)
(8,113)
36
50,545
16,345
Fines and forfeitures
-
6,475
-
-
Developer fees
-
-
-
-
Other revenue
-
3,478
-
19,571
Total revenues
251,075
4,799,922
4,438,802
654,600
Expenditures
Current
General government - 14,549 7,877 283
Public safety - - - -
Publicworks 273,462 4,802,593 51,024 54,766
Community development - - - -
Neighborhood services - - - 150,695
Capital outlay - 151,423 2,301,144 -
Debt service
Principal retirement - - - -
Interest and fiscal charges - - - -
Cost of issuance - - - -
Total expenditures
273,462
4,968,565
2,360,045
205,744
Excess (deficiency) of revenues over
(under) expenditures
(22,387)
(168,643)
2,078,757
448,856
Other Financing Sources (Uses)
Bonds issued
-
-
-
-
Premium on bonds issued
-
-
-
-
Transfers in
-
455,301
-
17,000
Transfers out
-
(311,543)
-
(4,630)
Total other financing sources (uses)
-
143,758
-
12,370
Net Change in Fund Balances
(22,387)
(24,885)
2,078,757
461,226
Fund Balances (Deficit), Beginning of Year
23,825
15,848
8,728,314
3,090,331
Fund Balances (Deficit), End of Year
$ 1,438
$ (9,037)
$ 10,807,071
$ 3,551,557
117
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, 2021
Special Revenue Funds
Street
SB 1 Road
Lighting
Measure M
Repair and
District
Local Return
Activity
State Park
TDA Traffic Safety
CDBG
6,408,017
-
-
-
- -
-
-
3,097,393
4,114,301
11,790
9,538,331 -
893,177
10,000
-
-
-
- -
-
(435)
6,374
(2,163)
3
(26,488) -
3,721
435,487
-
-
-
- 558,862
-
55,471
-
-
411
10,622 -
-
6,908,540
3,103,767
4,112,138
12,204
9,522,465 558,862
896,898
3,225,613
1,810,010 3,870,779 3,970,535 111,000 2,359,558 - -
- - - - - - 893,177
77,063 - - - - - -
- - - - 23 - -
5,112,686 3,870,779 3,970,535 111,000 2,359,581 - 893,177
1,795,854 (767,012) 141,603 (98,796) 7,162,884 558,862 3,721
229,588 - - - - - -
(1,123,290) - - - (355,301) (558,862) -
(893,702) - - - (355,301) (558,862) -
902,152 (767,012) 141,603 (98,796) 6,807,583 - 3,721
13,290,227 7,606,277 4,496,660 (10,914) 1,258,867 - 7,131
$ 14,192,379 $ 6,839,265 $ 4,638,263 $ (109,710) $ 8,066,450 $ - $ 10,852
(Continued)
118
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, 2021
Special Revenue Funds
Surface
Transportation
BJA Law
AQMD
Stormwater
Program
Enforcement
Revenues
Taxes
$ -
$ -
$ -
$ -
Special assessments
-
3,647,985
-
-
Intergovernmental
408,774
-
137,814
98,587
Charges for services
-
-
-
-
Investment income (loss)
(5,447)
(7,180)
-
2
Fines and forfeitures
-
-
-
-
Developer fees
-
-
-
Other revenue
-
549,161
-
-
Total revenues
403,327
4,189,966
137,814
98,589
Expenditures
Current
General government - 12,321 - -
Public safety - - - 98,587
Public works 236,890 4,102,722 172,195 -
Community development - - - -
Neighborhood services 444,269 8,296 - -
Capital outlay 153,059 - - -
Debt service
Principal retirement - - - -
Interest and fiscal charges - - - -
Cost of issuance - - - -
Total expenditures
834,218
4,123,339
172,195 98,587
Excess (deficiency) of revenues over
(under) expenditures
(430,891)
66,627
(34,381) 2
Other Financing Sources (Uses)
Bonds issued
-
-
- -
Premium on bonds issued
-
-
- -
Transfers in
-
3,690
- -
Transfers out
-
(182,899)
- -
Total other financing sources (uses)
-
(179,209)
- -
Net Change in Fund Balances
(430,891)
(112,582)
(34,381) 2
Fund Balances (Deficit), Beginning of Year
609,269
3,998,532
(37,538) -
Fund Balances (Deficit), End of Year
$ 178,378 $
3,885,950
$ (71,919) $ 2
119
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, 2021
Special Revenue Funds
Public
Supplemental
Library
Education and
Federal
Law Grant
HOME Facilities Fees
Government
Proposition C
ARPA Grants
$ - $
- $ -
$ 393,952
$ -
$ - $ -
524,638
13,934 -
-
6,701,878
- 3,969,336
(313)
518 17,198
2,135
60,395
- 87,396
-
- 863,465
-
-
- -
-
- -
-
4,672
9,618,118 1,656,762
524,325
14,452 880,663
396,087
6,766,945
9,618,118 5,713,494
209,832
o:.:•:
- - - - 51051,729 - 567,781
- - - - - - 3,775,853
- - - - - 143,838 -
- - - 20,034 1,143,322 - 12,292
486,898 - - 229,866 6,195,051 143,838 4,355,926
37,427 14,452 880,663 166,221 571,894 9,474,280 1,357,568
- - - - - (9,474,280) (253,327)
- - - - - (9,474,280) (253,327)
37,427 14,452 880,663 166,221 571,894 - 1,104,241
267,252 344,105 2,992,222 438,108 5,562,823 - (297,554)
$ 304,679 $ 358,557 $ 3,872,885 $ 604,329 $ 6,134,717 $ - $ 806,687
(Continued)
120
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, 2021
Special Revenue Funds
Measure R
Measure H
Highway
Homeless
Measure R
Improvement
Initiatives Measure M ATP
Revenues
Taxes
$ -
$ -
$ - $ -
Special assessments
-
-
- -
Intergovernmental
2,733,710
160,132
- 44,503
Charges for services
-
-
- -
Investment income (loss)
(15,192)
-
- -
Fines and forfeitures
-
-
-
Developer fees
-
-
-
Other revenue
-
-
- -
Total revenues
2,718,518
160,132
- 44,503
Expenditures
Current
General government
22
-
- -
Public safety
-
-
- -
Public works
4,111,125
172,745
- 49,448
Community development
-
-
150,094 -
Neighborhood services
-
-
- -
Capital outlay
-
-
- -
Debt service
Principal retirement
-
-
- -
Interest and fiscal charges
-
-
- -
Cost of issuance
-
-
- -
Total expenditures
4,111,147
172,745
150,094 49,448
Excess (deficiency) of revenues over
(under) expenditures
(1,392,629)
(12,613)
(150,094) (4,945)
Other Financing Sources (Uses)
Bonds issued
-
-
- -
Premium on bonds issued
-
-
- -
Transfers in
-
-
- -
Transfers out
-
-
- -
Total other financing sources (uses)
-
-
- -
Net Change in Fund Balances
(1,392,629)
(12,613)
(150,094) (4,945)
Fund Balances (Deficit), Beginning of Year
4,279,636
(3,168)
- (3,000)
Fund Balances (Deficit), End of Year
$ 2,887,007
$ (15,781)
$ (150,094) $ (7,945)
121
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, 2021
Special Revenue Funds
Measure W
Tourism
Housing
Measure A
Safe Clean
Marketing
Miscellaneous
Park
Successor
Safe Parks
Water
District
OSPD
Grants
Dedication
Agency
$ -
$ 3,211,394 $
-
$ -
$ -
$ -
$ -
-
-
-
2,881,269
-
-
-
351,870
-
-
-
550,342
-
-
-
426,829
72,933
-
-
-
112
24,964
1,483
17,640
-
(10,516)
15,937
-
-
-
-
-
1,260,808
-
-
-
-
-
-
-
200,965
351,982
3,236,358
428,312
2,971,842
550,342
1,250,292
216,902
- - 453,437 716,532 - - -
- - - 7,690 495,248 2,267,856 -
- - - - 162,127 - -
- 147,482 - - - - -
- - - 470,455 - 48,254 -
- 147,482 453,437 1,194,677 657,375 2,316,110 -
351,982 3,088,876 (25,125) 1,777,165 (107,033) (1,065,818) 216,902
(194,251) -
(500,000)
(791,563) -
- -
(194,251) -
(500,000)
(791,563) -
- -
157,731 3,088,876
(525,125)
985,602 (107,033)
(1,065,818) 216,902
(351,869) (1,586,810)
998,022
5,592,426 90,890
5,118,397 699,408
$ (194,138) $ 1,502,066 $
472,897 $
6,578,028 $ (16,143) $
4,052,579 $ 916,310
(Continued)
122
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, 2021
Special Revenue Funds
Tourism
Cooper St
VC
Marketing
Parking
Wastewater
Bureau
Areawide
CFD 2020-1
Standby District
Revenues
Taxes $ -
$ - $
-
$ -
Special assessments -
7,238,692
-
1,159,471
Intergovernmental -
-
-
-
Charges for services 150
-
-
-
Investment income (loss) 68
(115,927)
(2,348)
15,407
Fines and forfeitures -
80,584
-
-
Developer fees -
-
-
Other revenue -
(8,483)
-
-
Total revenues 218
7,194,866
(2,348)
1,174,878
Expenditures
Current
General government
2,678 5,128,771 - -
Public safety
- - - -
Public works
- 1,305,979 274,972 -
Community development
- 22,000 - -
Neighborhood services
- 11,166,157 - 1,544
Capital outlay
- - - -
Debt service
Principal retirement
- - - -
Interest and fiscal charges
- - - -
Cost of issuance
- - - -
Total expenditures
2,678
17,622,907
274,972
1,544
Excess (deficiency) of revenues over
(under) expenditures
(2,460)
(10,428,041)
(277,320)
1,173,334
Other Financing Sources (Uses)
Bonds issued
-
-
-
-
Premium on bonds issued
-
-
-
-
Transfers in
-
9,980,853
-
-
Transfers out
-
(481,089)
-
-
Total other financing sources (uses)
-
9,499,764
-
-
Net Change in Fund Balances
(2,460)
(928,277)
(277,320)
1,173,334
Fund Balances (Deficit), Beginning of Year
72,499
6,357,325
-
1,522,920
Fund Balances (Deficit), End of Year
$ 70,039
$ 5,429,048
(277,320) $
2,696,254
123
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, 2021
Debt Service
Capital Projects Funds Fund
General Public Public Total Non -major
Capital Financing Civics Financing Governmental
Projects Authority Arts Projects Authority Funds
$ - $ - $ - $ - $ 3,605,346
- - - - 21,954,118
- - - - 42,787,888
- - - - 509,912
- - 253 - 126,410
- - - - 1,081,408
- - - - 2,124,273
1,680 - - - 12,112,428
1,680 - 253 - 84,301,783
9,771,915
585,485
1,534,508 - 25,495 - 37,680,110
- - - - 5,003,251
- - - - 12,139,344
- - - - 4,300,006
- - - 2,315,371 2,315,371
- - - 2,852,848 2,852,848
- - - 278,843 278,843
1,534,508 - 25,495 5,447,062 74,927,173
(1,532,828) - (25,242) (5,447,062) 9,374,610
-
- -
14,270,000
14,270,000
-
- -
225,409
225,409
1,481,118
- 40,000
4,232,891
16,440,441
-
- -
(14,200,000)
(28,431,035)
1,481,118
- 40,000
4,528,300
2,504,815
(51,710)
- 14,758
(918,762)
11,879,425
410,504
10 340,168
1,522,157
77,443,300
$ 358,794 $
10 $ 354,926
$ 603,395
$ 89,322,725
124
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 67,129 $ 363,295 $
259,188
$ (104,107)
Investment income (loss)
- -
(8,113)
(8,113)
Total revenues
67,129 363,295
251,075
(112,220)
Expenditures:
Capital Improvement Projects:
Personnel
- -
558
(558)
Operating
67,128 400,141
272,904
127,237
Total expenditures 67,128 400,141 273,462 126,679
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1 (36,846) (22,387) 14,459
Net Change in Fund Balance $ 1 $ (36,846) (22,387) $ 14,459
Fund Balance at Beginning of Year 23,825
Fund Balance at End of Year $ 1,438
125
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 4,593,233 $ 4,929,578 $ 4,789,933 $ (139,645)
Investment income (loss) - - 36 36
Fines and forfeitures - - 6,475 6,475
Other revenue - - 3,478 3,478
Total revenues
Expenditures:
Operating:
Personnel
Operating
Capital outlay
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfer in
Transfer out
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Deficit at End of Year
4,593,233 4,929,578 4,799,922 (129,656)
2,591,522 2,642,957 2,442,570 200,387
2,320,603 2,368,603 2,312,451 56,152
- 151,423 151,423 -
- - 2,730 (2,730)
- 100,509 59,391 41,118
4,912,125 5,263,492 4,968,565 294,928
(318,892) (333,914) (168,643) 165,272
630,434 562,206 455,301 (106,905)
(311,543) (311,543) (311,543) -
318,891 250,663 143,758 (106,905)
$ (1) $ (83,251) (24,885) $ 58,367
15,848
$ (9,037)
126
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, 2021
Revenues:
Intergovernmental
Investment income (loss)
Total revenues
Expenditures:
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other Financing Sources (Uses):
Transfer out
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 3,896,055 $ 3,896,055 $ 4,388,257 $ 492,202
59,265 59,265 50,545 (8,720)
3,955,320 3,955,320 4,438,802 483,482
- - 58,901
(58,901)
- 4,390,990 2,301,144
2,089,846
- 4,390,990 2,360,045
2,030,945
3,955,320 (435,670) 2,078,757 2,514,427
(3,955,320) (1,231,848) - 1,231,848
$ - $ (1,667,518) 2,078,757 $ 3,746,275
8,728,314
$ 10,807,071
127
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Special assessments $ 623,686 $ 623,686 $ 618,684 $ (5,002)
Investment income (loss) 49,771 49,771 16,345 (33,426)
Other revenue - - 19,571 19,571
Total revenues 673,457 673,457 654,600 (38,428)
Expenditures:
Operating:
Personnel
54,779
55,292
47,107
8,185
Operating
349,745
349,747
158,637
191,110
Total expenditures
404,524
405,039
205,744
199,295
Excess (deficiency) of revenues
over(under)expenditures
268,933
268,418
448,856
160,867
Other Financing Sources (Uses):
Transfer in
-
-
17,000
17,000
Transfer out
(4,630)
(4,630)
(4,630)
-
Total other financing sources (uses)
(4,630)
(4,630)
12,370
17,000
Net Change in Fund Balance
$ 264,303 $
263,788
461,226 $
177,867
Fund Balance at Beginning of Year
3,090,331
Fund Balance at End of Year
$
3,551,557
128
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, 2021
Revenues:
Special assessments
Charges for services
Investment income (loss)
Fines and forfeitures
Otherrevenue
Total revenues
Expenditures:
Operating:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfer in
Transfer out
Total other financing sources (uses)
Net Change in Fund Balance
Reconciliation to GAAP Basis Expenditures
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
$ 5,950,117 $
5,950,117 $
6,356,309
$ 406,192
20,000
2,500
10,000
7,500
230,670
230,670
(435)
(231,105)
410,000
560,000
435,487
(124,513)
150,000
100,000
55,471
(44,529)
6,760,787 6,843,287 6,856,832 13,545
237,724 233,763 233,907
4,362,602 4,558,187 4,558,187
(144)
4,600,326 4,791,950 4,792,094 (144)
2,160,461 2,051,337 2,064,738 13,401
427,720 472,413 281,296 (191,117)
(1,321,543) (1,366,236) (1,123,290) 242,946
(893,823) (893,823) (841,994) 51,829
$ 1,266,638 $ 1,157,514 1,222,744 $ 65,230
320,592
13,290,227
$ 14,192,379
129
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 2,746,924 $ 2,746,924 $ 3,097,393 $ 350,469
Investment income (loss) 9,408 9,408 6,374 (3,034)
Total revenues 2,756,332 2,756,332 3,103,767 347,435
Expenditures:
Capital Improvement Projects:
Operating 4,856,791 9,743,109 3,870,779 5,872,330
Net Change in Fund Balance $ (2,100,459) $ (6,986,777) (767,012) 6,219,765
Fund Balance at Beginning of Year 7,606,277
Fund Balance at End of Year $ 6,839,265
130
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 3,707,349 $ 3,707,349 $ 4,114,301 $ 406,952
Investment income (loss) - - (2,163) (2,163)
Total revenues 3,707,349 3,707,349 4,112,138 404,789
Expenditures:
Capital Improvement Projects:
Operating 3,804,072 7,524,602 3,970,535 3,554,067
Net Change in Fund Balance $ (96,723) $ (3,817,253) 141,603 $ 3,958,856
Fund Balance at Beginning of Year 4,496,660
Fund Balance at End of Year $ 4,638,263
131
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ $ 10,458 $
11,790
$ 1,332
Investment income (loss)
-
3
3
Otherrevenue
-
411
411
Total revenues
10,458
12,204
1,335
Expenditures:
Capital Improvement Projects:
Operating
111,000
111,000
-
Net Change in Fund Balance
$ $ (100,542)
(98,796)
$ 1,335
Fund Deficit at Beginning of Year
(10,914)
Fund Deficit at End of Year
$
(109,710)
132
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, 2021
Revenues:
Intergovernmental
Investment income (loss)
Other revenue
Total revenues
Expenditures:
Capital Improvement Projects:
Operating
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfer out
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 9,898,475 $ 5,604,511 $ 9,538,331 $ 3,933,820
- - (26,488) (26,488)
- - 10,622 10,622
9,898,475 5,604,511 9,522,465 3,907,332
5,152,977 11,544,063 2,359,581 9,184,482
4,745,498 (5,939,552) 7,162,884 13,091,814
(4,745,498) (462,206) (355,301) 106,905
$ - $ (6,401,758) 6,807,583 $ 13,198,719
1,258,867
$ 8,066,450
133
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Fines and forfeitures $ 550,000 $ 550,000 $ 558,862 $ 8,862
Other Financing Sources (Uses):
Transfer out (550,000) (550,000) (558,862) (8,862)
Net Change in Fund Balance $ - $ $
Fund Balance at Beginning of Year
Fund Balance at End of Year $
134
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 2,647,881 $ 3,247,881 $ 893,177 $ (2,354,704)
Investment income (loss) - - 3,721 3,721
Total revenues 2,647,881 3,247,881 896,898 (2,350,983)
Expenditures:
Operating:
Personnel
192,722
784,260
136,873
647,387
Operating
697,464
1,117,223
362,365
754,858
Capital Improvement Projects:
Operating
1,740,637
2,190,637
393,939
1,796,698
Total expenditures
2,630,823
4,092,120
893,177
3,198,943
Excess (deficiency) of revenues
over (under) expenditures
17,058
(844,239)
3,721
847,960
Net Change in Fund Balance
$ 17,058 $
(844,239)
3,721 $
847,960
Fund Balance at Beginning of Year
7,131
Fund Balance at End of Year
$
10,852
135
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, 2021
Revenues:
Intergovernmental
Investment income (loss)
Total revenues
Expenditures:
Operating:
Operating
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 280,943 $ 402,943 $ 408,774 $ 5,831
(8,131) (8,131) (5,447) 2,684
272,812 394,812 403,327 8,515
21,531 21,531 13,000 8,531
- - 8,322 (8,322)
28,000 998,812 812,896 185,916
49,531 1,020,343 834,218 186,125
223,281 (625,531) (430,891) 194,640
$ 223,281 $ (625,531) (430,891) $ 194,640
609,269
$ 178,378
136
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Special assessments
$ 3,617,663 $ 3,617,663 $
3,647,985
$ 30,322
Investment income (loss)
48,600 48,600
(7,180)
(55,780)
Other revenue
- 982,214
549,161
(433,053)
Total revenues
3,666,263 4,648,477
4,189,966
(458,511)
Expenditures:
Operating:
Personnel
1,313,433
1,308,750
1,282,324
26,426
Operating
2,049,062
3,607,733
2,668,943
938,790
Capital Improvement Projects:
Personnel
-
-
5,656
(5,656)
Operating
35,376
549,257
166,416
382,841
Total expenditures
3,397,871
5,465,741
4,123,339
1,342,402
Excess (deficiency) of revenues
over (under) expenditures
268,392
(817,264)
66,627
883,891
Other Financing Sources (Uses):
Transfer in
3,690
3,690
3,690
-
Transfer out
(182,899)
(182,899)
(182,899)
-
Total other financing sources (uses)
(179,209)
(179,209)
(179,209)
-
Net Change in Fund Balance
$ 89,183
$ (996,473)
(112,582) $
883,891
Fund Balance at Beginning of Year
3,998,532
Fund Balance at End of Year
$
3,885,950
137
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ - $ 1,414,789 $
137,814
$ (1,276,975)
Expenditures:
Capital Improvement Projects:
Operating
- 1,373,368
172,195
1,201,173
Excess (Deficiency) of Revenues
Over (Under) Expenditures
- 41,421
(34,381)
(75,802)
Net Change in Fund Balance
$ - $ 41,421 $
(34,381)
$ (75,802)
Fund Deficit at Beginning of Year
(37,538)
Fund Deficit at End of Year
$
(71,919)
138
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, 2021
Revenues:
Intergovernmental
Investment income (loss)
Total revenues
Expenditures:
Operating:
Operating
Capital Improvement Projects:
Operating
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ - $ 102,284.00 $ 98,587 $ (3,697)
- $ - 2 2
- $ 102,284.00 98,589 (3,695)
- $
38,458.00
34,761
3,697
- $
63,826.00
63,826
0.42
- $
102,284.00
98,587
3,697
2
2
2 $ 0
$ 2
139
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Intergovernmental $ 332,922 $ 405,458 $ 524,638 $ 119,180
Investment income (loss) - - (313) (313)
Total revenues 332,922 405,458 524,325 118,867
Expenditures:
Operating:
Operating 479,544 479,544 486,898 (7,354)
Excess (deficiency) of revenues
over (under) expenditures (146,622) (74,086) 37,427 111,513
Net Change in Fund Balance $ (146,622) $ (74,086) 37,427 $ 111,513
Fund Balance at Beginning of Year 267,252
Fund Balance at End of Year $ 304,679
140
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ - $ - $
13,934
$ 13,934
Investment income (loss)
6,041 6,041
518
(5,523)
Total revenues
6,041 6,041
14,452
8,411
Excess (deficiency) of revenues
over (under) expenditures
6,041 6,041
14,452
8,411
Net Change in Fund Balance
$ 6,041 $ 6,041
14,452
$ 8,411
Fund Balance at Beginning of Year
344,105
Fund Balance at End of Year
$
358,557
141
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Investment income (loss)
$ 51,747 $
51,747 $
17,198
$ (34,549)
Developerfees
230,000
899,000
863,465
(35,535)
Total revenues
281,747
950,747
880,663
(70,084)
Excess (deficiency) of revenues
over (under) expenditures
281,747
950,747
880,663
(70,084)
Net Change in Fund Balance
$ 281,747 $
950,747
880,663
$ (70,084)
Fund Balance at Beginning of Year
2,992,222
Fund Balance at End of Year
$
3,872,885
142
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Taxes $ 430,000 $ 430,000 $ 393,952 $ (36,048)
Investment income (loss) 7,259 7,259 2,135 (5,124)
Total revenues 437,259 437,259 396,087 (41,172)
Expenditures:
Operating:
Operating
133,000 201,742
209,832
(8,090)
Capital outlay
- 28,884
20,034
8,850
Total expenditures
133,000 230,626
229,866
760
Net Change in Fund Balance
$ 304,259 $ 206,633
166,221 $
(40,412)
Fund Balance at Beginning of Year
438,108
Fund Balance at End of Year
$
604,329
143
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 4,182,399 $ 12,077,839 $
6,701,878
$ (5,375,961)
Investment income (loss)
12,332 12,332
60,395
48,063
Other revenue
- -
4,672
4,672
Total revenues
4,194,731 12,090,171
6,766,945
(5,327,898)
Expenditures:
Capital Improvement Projects:
Personnel
-
-
34,674
(34,674)
Operating
1,515,000
9,261,590
6,160,377
3,101,213
Total expenditures
1,515,000
9,261,590
6,195,051
3,066,539
Excess (deficiency) of revenues
over (under) expenditures
2,679,731
2,828,581
571,894
(2,261,359)
Net Change in Fund Balance
$ 2,679,731 $
2,828,581
571,894 $
(2,261,359)
Fund Balance at Beginning of Year
5,562,823
Fund Balance at End of Year
$
6,134,717
144
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
American Rescue Plan Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:
Other revenue
Expenditures:
Operating:
Personnel
Operating
Total Expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfer out
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ - $ 403,578 $ 9,618,118 $ 9,214,540
$ - $ - $ 5,108 $ (5,108)
- 403,578 138,730 264,848
- 403,578 143,838 259,740
- - 9,474,280 9,474,280
- - (9,474,280) (9,474,280)
- $ 264,848
145
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, 2021
Revenues:
Intergovernmental
Investment income (loss)
Other revenue
Total Revenues
Expenditures:
Operating
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfer out
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ 934,875 $ 4,447,507 $ 3,969,336 $ (478,171)
- - 87,396 87,396
- 6,619,208 1,656,762 (4,962,446)
934,875 11,066,715 5,713,494 (5,353,221)
934,875 11,848,120 4,355,926 7,492,194
- (781,405) 1,357,568 2,138,973
- (450,000) (253,327) 196,673
$ - $ (1,231,405) 1,104,241 7,014,023
(297,554)
$ 806,687
146
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 2,423,756 $ 2,423,756 $
2,733,710
$ 309,954
Investment income (loss)
- -
(15,192)
(15,192)
Total revenues
2,423,756 2,423,756
2,718,518
294,762
Expenditures:
Capital Improvement Projects:
Operating 2,369,379 6,210,654 4,111,147 2,099,507
Excess (deficiency) of revenues
over (under) expenditures 54,377 (3,786,898) (1,392,629) 2,394,269
Net Change in Fund Balance $ 54,377 $ (3,786,898) (1,392,629) $ 2,394,269
Fund Deficit at Beginning of Year 4,279,636
Fund Deficit at End of Year $ 2,887,007
147
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Measure R Highway Improvement Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:
Intergovernmental
Expenditures:
Operating
Excess (deficiency) of revenues
over(under)expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ - $ 4,562,344 $ 160,132 $ (4,402,212)
4,559,176
3,168
$ $ 3,168
172,745 4,386,431
(12,613) (15,781)
(12,613) $ (15,781)
(3,168)
$ (15,781)
148
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Measure H Homeless Initiatives Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Other revenue
$ - $ 501,493 $
-
$ (501,493)
Expenditures:
Operating:
Personnel
- 68,152
23,601
44,551
Operating
- 501,493
126,493
375,000
Net Change in Fund Balance
$ - $ (68,152)
(150,094)
$ 375,000
Fund Balance at Beginning of Year
-
Fund Deficit at End of Year
$
(150,094)
149
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Measure M ATP Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 1,197,000 $
737,494 $
44,503
$ (692,991)
Expenditures:
Capital Improvement Projects:
Personnel
-
-
7,063
(7,063)
Operating
1,197,000
1,241,994
42,385
1,199,609
Total expenditures
1,197,000
1,241,994
49,448
1,192,546
Net Change in Fund Balance
$ - $
(504,500)
(4,945)
$ 499,555
Fund Deficit at Beginning of Year
(3,000)
Fund Deficit at End of Year
$
(7,945)
150
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Measure A Safe Parks Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 179,836 $
531,695 $
351,870
$ (179,825)
Investment income (loss)
-
-
112
112
Total revenues
179,836
531,695
351,982
(179,713)
Excess (deficiency) of revenues
over (under) expenditures
179,836
531,695
351,982
(179,713)
Other Financing Sources (Uses):
Transfer out
(179,836)
(179,836)
(194,251)
(14,415)
Net Change in Fund Balance
$ - $
351,859
157,731
$ (194,240)
Fund Deficit at Beginning of Year
(351,869)
Fund Deficit at End of Year
$
(194,138)
151
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Measure W Safe Clean Water Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:
Taxes
Intergovernmental
Investment income (loss)
Total revenues
Expenditures:
Operating:
Personnel
Operating
Capital Improvement Projects:
Personnel
Operating
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net Change in Fund Balance
Fund Deficit at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
$ 3,000,000 $
6,422,788 $
3,211,394
$ (3,211,394)
-
1,801,103
-
(1,801,103)
47,740
47,740
24,964
(22,776)
3,047,740
8,271,631
3,236,358
(5,035,273)
128,774 132,735 134,172 (1,437)
1,116 1,116 1,116 -
- - 6,892 (6,892)
113,600 257,862 5,302 252,560
243,490 391,712 147,482 244,231
2,804,250 7,879,919 3,088,876 (4,791,042)
$ 2,804,250 $ 7,879,919 3,088,876 (2,967,163)
(1,586,810)
$ 1,502,066
152
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Charges for services
$ 625,000 $
405,000 $
426,829
$ 21,829
Investment income (loss)
15,512
15,512
1,483
(14,029)
Total revenues
640,512
420,512
428,312
7,800
Expenditures:
Operating:
Personnel
31,460
31,337
32,485
(1,148)
Operating
557,433
557,433
420,952
136,481
Total expenditures
588,893
588,770
453,437
135,333
Excess (deficiency) of revenues
over (under) expenditures
51,619
(168,258)
(25,125)
143,133
Other Financing Sources (Uses):
Transfer out
-
(500,000)
(500,000)
-
Net Change in Fund Balance
$ 51,619 $
(668,258)
(525,125)
$ 143,133
Fund Balance at Beginning of Year
998,022
Fund Balance at End of Year
$
472,897
153
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Special assessments
$ 2,848,291 $
2,848,291 $
2,881,269
$ 32,978
Charges for services
124,442
124,442
72,933
(51,509)
Investment income (loss)
103,776
103,776
17,640
(86,136)
Total revenues
3,076,509
3,076,509
2,971,842
(104,667)
Expenditures:
Operating:
Personnel
324,460
324,850
314,704
10,146
Operating
423,995
620,913
500,992
119,921
Capital outlay
-
1,438,400
304,459
1,133,941
Capital Improvement Projects:
Operating
30,000
145,467
74,522
70,945
Total expenditures
778,455
2,529,629
1,194,677
1,334,952
Excess (deficiency) of revenues
over (under) expenditures
2,298,054
546,880
1,777,165
1,230,285
Other Financing Sources (Uses):
Transfer out
(791,563)
(791,563)
(791,563)
-
Net Change in Fund Balance
$ 1,506,491
$ (244,683)
985,602 $
1,230,285
Fund Balance at Beginning of Year
5,592,426
Fund Balance at End of Year
$
6,578,028
154
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Intergovernmental
$ 764,976 $
10,104,276 $
550,342
$ (9,553,934)
Expenditures:
Operating:
Operating
691,500
713,440
233,892
479,548
Capital Improvement Projects:
Operating
72,000
9,271,231
423,483
8,847,748
Total expenditures
763,500
9,984,671
657,375
9,327,296
Net Change in Fund Balance
$ 1,476 $
119,605
(107,033)
$ (226,638)
Fund Balance at Beginning of Year
90,890
Fund Deficit at End of Year
$
(16,143)
155
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Investment income (loss)
$ 15,767 $
15,767 $
(10,516)
$ (26,283)
Developer fees
345,368
1,260,808
1,260,808
-
Total revenues
361,135
1,276,575
1,250,292
(26,283)
Expenditures:
Capital improvement projects:
Personnel
-
-
11,138
(11,138)
Operating
165,000
4,981,945
2,304,972
2,676,973
Total expenditures 165,000 4,981,945 2,316,110 2,665,835
Excess (deficiency) of revenues
over (under) expenditures 196,135 (3,705,370) (1,065,818) 2,639,552
Net Change in Fund Balance $ 196,135 $ (3,705,370) (1,065,818) $ 2,639,552
Fund Balance at Beginning of Year 5,118,397
Fund Balance at End of Year $ 4,052,579
156
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Investment income (loss)
$ $ - $
15,937
$ 15,937
Other revenue
200,965
200,965
-
Total revenues
200,965
216,902
15,937
Net Change in Fund Balance
$ $ 200,965
216,902
$ 15,937
Fund Balance at Beginning of Year
699,408
Fund Balance at End of Year
$
916,310
157
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, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Charges for services
$ 7,500 $ - $
150
$ 150
Investment income (loss)
- -
68
68
Total revenues
7,500 -
218
218
Expenditures:
Operating:
Operating
9,676 9,676
2,678
6,998
Net Change in Fund Balance
$ (2,176) $ (9,676)
(2,460)
$ 7,216
Fund Balance at Beginning of Year
72,499
Fund Balance at End of Year
$
70,039
158
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Areawide Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts
Final Budget
Original Final
Actual
Positive/(Negative)
Revenues:
Special assessments
$ 7,114,672 $ 7,133,172 $
7,238,692
$ 105,520
Investment income (loss)
- -
(115,927)
(115,927)
Fines and forfeitures
- -
80,584
80,584
Other revenue
- -
(8,483)
(8,483)
Total revenues
7,114,672 7,133,172
7,194,866
61,694
Expenditures:
Operating:
Personnel
5,681,894
5,595,695
5,048,430
547,265
Operating
10,533,652
11,083,137
10,562,136
521,001
Capital Improvement Projects:
Personnel
-
-
24,822
(24,822)
Operating
1,101,858
3,784,672
1,987,519
1,797,153
Total expenditures
17,317,404
20,463,504
17,622,907
2,840,597
Excess (deficiency) of revenues
over (under) expenditures
(10,202,732)
(13,330,332)
(10,428,041)
2,902,291
Other Financing Sources (Uses):
Transfer in
11,121,121
10,840,287
9,980,853
(859,434)
Transfer out
(481,089)
(481,089)
(481,089)
-
Total other financing sources (uses)
10,640,032
10,359,198
9,499,764
(859,434)
Net Change in Fund Balance
$ 437,300
$ (2,971,134)
(928,277) $
2,042,857
Fund Balance at Beginning of Year
6,357,325
Fund Balance at End of Year
$
5,429,048
159
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Cooper Street Parking Structure CFD 2020 Special Revenue Fund
For the Year Ended June 30, 2021
Revenues:
Investment income (loss)
Other revenue
Total revenues
Expenditures:
Operating:
Operating
Excess (deficiency) of revenues
over(under)expenditures
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Deficit at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ $ - $ (2,348) $ (2,348)
302,422 (302,422)
302,422 (2,348) (304,770)
302,422 274,972 27,450
(277,320) (277,320)
$ $ (277,320) $ 27,450
$ (L 320)
160
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Vista Canyon Wastewater Standby District Special Revenue Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Revenues:
Special assessments
$ 1,092,654 $
1,092,654 $
1,159,471
$ 66,817
Investment income (loss)
40,446
40,446
15,407
(25,039)
Total revenues
1,133,100
1,133,100
1,174,878
41,778
Expenditures:
Operating:
Operating
$ 26,500 $
26,500 $
1,544
$ 24,956
Net Change in Fund Balance
$ 1,106,600 $
1,106,600
1,173,334
$ 66,734
Fund Balance at Beginning of Year
1,522,920
Fund Balance at End of Year
$
2,696,254
161
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, 2021
Revenues:
Other revenue
Expenditures:
Capital Improvement Projects:
Operating
Excess (deficiency) of revenues
over(under)expenditures
Other Financing Sources (Uses):
Transfer in
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
$ - $ - $ 1,680 $ 1,680
124,175 2,099,132 1,534,508 564,624
(124,175) (2,099,132) (1,532,828) 566,304
(124,175) (1,642,740) 1,481,118 3,123,858
$ (248,350) $ (3,741,872) (51,710) $ 3,688,482
410,504
$ 358,794
162
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, 2021
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
Revenues:
Total revenues
Expenditures:
Total Expenditures - - - -
Net Change in Fund Balance
Fund Balance at Beginning of Year 10
Fund Balance at End of Year $ 10
163
City of Santa Clarita, California
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
Civic Arts Projects Capital Projects Fund
For the Year Ended June 30, 2021
Revenues:
Investment income (loss)
Expenditures:
Capital Improvement Projects:
Operating
Other Financing Sources (Uses):
Transfer in
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
Variance with
Budgeted Amounts Final Budget
Original Final Actual Positive/(Negative)
253 $ 253
- 365,931 25,495 340,436
- 40,000 40,000
$ - $ (325,931) 14,758 $
340,168
$ 354,926
340,689
164
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, 2021
Variance with
Budgeted
Amounts
Final Budget
Original
Final
Actual
Positive/(Negative)
Expenditures:
Operating
$ 3,067,433
$ 3,770,731 $
5,447,062
$ (1,676,331)
Excess (deficiency) of revenues
over (under) expenditures
(3,067,433)
(3,770,731)
(5,447,062)
(1,676,331)
Other financing sources (uses):
Bonds issued
-
-
14,270,000
14,270,000
Premium on bonds issued
-
-
225,409
225,409
Transfer in
3,067,433
4,695,294
4,232,891
(462,403)
Transfer out
-
(14,200,000)
(14,200,000)
-
Total other financing sources (uses)
3,067,433
(9,504,706)
4,528,300
14,033,006
Net Change in Fund Balance
$ -
$ (13,275,437)
(918,762)
$ (2,138,734)
Fund Balance at Beginning of Year
1,522,157
Fund Balance at End of Year
$
603,395
165
City of Santa Clarita, California
Description of Internal Service Funds
As of and for the Year Ended June 30, 2021
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.
166
Assets
Current assets
Cash and investments
Receivables
Interest
Prepaid costs
Total current assets
Noncurrent assets
Net OPEB asset
Equipment, net of accumulated depreciation
Total noncurrent assets
Total assets
Deferred Outflows of Resources
Deferred outflows related to OPEB
Deferred outflows related to pensions
Total deferred outflows of resources
Liabilities
Current liabilities
Accounts payable and accrued liabilities
Compensated absences
Claims and judgments
Total current liabilities
Noncurrent liabilities
Net pension liability
Compensated absences payable
Claims and judgments
Total non -current liabilities
Total liabilities
Deferred Inflows of Resources
Deferred inflows related to OPEB
Deferred inflows related to pensions
Total deferred inflows of resources
Net position
Net investment in capital assets
Unrestricted
Total net position
City of Santa Clarita, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
Self Computer Vehicle
Insurance Replacement Replacement Totals
$ 7,772,679 $ 2,276,493 $ 4,350,402 $ 14,399,574
11,022 4,705 9,175 24,902
12,057 - - 12,057
7,795,758 2,281,198 4,359,577 14,436,533
37,726 37,726
7,833,484
2,503,963
6,040,093
16,377,540
23,937
-
-
23,937
64,207
64,207
88,144
-
-
88,144
26,314
28,841
1,309
56,464
12,123
-
-
12,123
3,974,601
-
3,974,601
4,013,038
28,841
1,309
4,043,188
127,582
-
-
127,582
14,062
-
14,062
2,435,996
49
2,436,045
2,577,640
49
-
2,577,689
6,590,678
28,890
1,309
6,620,877
94,346
-
-
94,346
1,929
1,929
96,275
-
96,275
-
222,765
1,680,516
1,903,281
1,234,675
2,252,308
4,358,268
7,845,251
$ 1,234,675
$ 2,475,073
$ 6,038,784
$ 9,748,532
167
Operating Revenues
Charges for services
Operating Expenses
Administration and personnel services
Services and supplies
Depreciation expense
Total operating expenses
Operating income (loss)
Nonoperating Revenues
Investment income (loss)
Income before transfers
Transfers
Transfers in
Transfers out
Total Transfers
Change in net position
Net Position, Beginning of the Year
Net Position, End of the Year
City of Santa Clarita, California
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2021
Self Computer Vehicle
Insurance Replacement Replacement
$ 3,495,914 $ 804,311 $ 420,050
1,316,348 59,915 -
2,407,131 1,206,044 (54,102)
Totals
$ 4,720,275
1,376,263
3,559,073
(23,716) (11,577) 5,674 (29,619)
(251,281) (534,897) 175,978 (610,200)
64,560 570 - 65,130
(38,076) - - (38,076)
26,484 570 - 27,054
(224,797) (534,327) 175,978 (583,146)
1,459,472 3,009,400 5,862,806 10,331,678
$ 1,234,675 $ 2,475,073 $ 6,038,784 $ 9,748,532
168
Operating Activities
Cash received from customers and users
Cash paid to/received from suppliers for goods and services
Cash paid to employees for services
Net Cash Provided by Operating Activities
Non -Capital Financing Activities
Cash transfers out
Cash transfers in
Net Cash Provided (Used in) Non -capital Financing Activities
Capital and Related Financing Activities
Acquisition and construction of capital assets
Investing Activities
Interest received
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Fiscal Year
Cash and Cash Equivalents, End of Fiscal Year
Reconciliation of operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Change in deferred amounts related to pensions
Change in deferred amounts related to OPEB
Change in net OPEB liability
Change in net pension liability
Increase in prepaid expense
Decrease in accounts payable
Increase in claims and judgments
Increase in compensated absences
Total Adjustments
Net Cash Provided by Operating Activities
City of Santa Clarita, California
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2021
Self
Computer
Vehicle
Insurance
Replacement
Replacement
Totals
$ 3,495,914
$ 804,311
$ 420,050
$ 4,720,275
(943,778)
(1,417,618)
(15,402)
(2,376,798)
(1,323,729)
(59,869)
-
(1,383,598)
1,228,407
(673,176)
404,648
959,879
(38,076)
-
-
(38,076)
64,560
570
65,130
26,484
570
27,054
-
(35,694)
(458,788)
(494,482)
(14,046)
(6,769)
10,471
(10,344)
1,240,845
(715,069)
(43,669)
482,107
6,531,834
2,991,562
4,394,071.00
13,917,467
$ 7,772,679
$ 2,276,493
$ 4,350,402
14,399,574
$ (227,565)
$ (523,320)
$ 170,304
$ (580,581)
-
61,672
303,848
365,520
12,959
-
-
12,959
80,702
80,702
(87,736)
(87,736)
(15,321)
(15,321)
(12,057)
(12,057)
(34,079)
(211,574)
(69,504)
(315,157)
1,509,489
46
1,509,535
2,015
-
-
2,015
1,455,972
(149,856)
234,344
1,540,460
$ 1,228,407
$ (673,176)
$ 404,648
$ 959,879
169
City of Santa Clarita, California
Description of Custodial Funds
As of and for the Year June 30, 2021
Custodial Funds are used to account for assets held by the City as a fiduciary for individuals or other
governments.
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.
Community Facilities District No. 2016-1—To account for monies held to account for debt service requirements
for Community Facilities District No. 2016-1.
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
170
Assets
Cash and investments
Receivables
Interest
Contributions
Prepaid costs
Restricted assets
Cash and investments with fiscal agents
Total assets
City of Santa Clarita, California
Combining Statement of Assets and Liabilities
Custodial Funds
As of June 30, 2021
Community
Assessment
Assessment
Facilities
District
District
District
No.92-2
No.99-1
No.2002-1
$ 245,128
$ 122,555
$ 1,099,912
518
260
4,970
776
2,751
52,880
59,719
1,650,228
299,302
185,285
2,755,110
Liabilities
Accounts payable - - -
Due to other governments - - -
Due to external parties 155,000 315,000 12,835,000
Total liabilities 155,000 315,000 12,835,000
Net position (deficit) - Restricted for:
Individuals, organizations, and other governments 144,302 (129,715) (10,079,890)
Total net position (deficit) $ 144,302 $ (129,715) $ (10,079,890)
171
City of Santa Clarita, California
Combining Statement of Assets and Liabilities (Continued)
Custodial Funds
As of June 30, 2021
Santa Clarita
Community
Watershed and
Santa Clarita
Facilites
Recreation
Public
District
Conservancy
Television
No.2016-1
Authority
Authority
Totals
$ 334,018
$ 16,689
$ 86
$ 1,818,388
2,721
-
-
8,469
78,078
81,605
-
-
17,312
17,312
1,425,177
-
-
3,188,004
1,839,994
16,689
17,398
5,113,778
254,117
2,150
19,147, 784
19,404,051
254,117
2,150
32,452,784
32,709,051
(17,564,057)
16,689
17,398
(27,595,273)
$ (17,564,057) $
16,689 $
17,398
$ (27,595,273)
172
Contributions:
Investment income, net
Contribution from property owners
Member support
Total contributions
Deductions:
Administrative expenses
Contractual services
Interest expense
Contributions on behalf of others for the purchase
of building and structures
Payments to other governments
Total deductions
Net Increase (Decrease) In Fiduciary Net Position
Net Position, Beginning of Year, As Restated
Net Position, End of Year
City of Santa Clarita, California
Combining Statement of Changes in Assets and Liabilities
Custodial Funds
For the Year Ended June 30, 2021
Community
Assessment
Assessment
Facilities
District
District
District
No.92-2
No.99-1
No.2002-1
$ 1,128
$ (88)
$ 12,699
120,846
122,963
2,573,982
121,974
122,875
2,586,681
7,007
5,436
2,272
21,004
44,927
661,170
3,227
3,146
1,264,668
31,238
53,509
1,928,110
90,736
69,366
658,571
53,566
(199,081)
(10,738,461)
$ 144,302
$ (129,715)
$ (10,079,890)
173
City of Santa Clarita, California
Combining Statement of Changes in Assets and Liabilities (Continued)
Custodial Funds
For the Year Ended June 30, 2021
Santa Clarita
Community
Watershed and
Santa Clarita
Facilites
Recreation
Public
District
Conservancy
Television
No.2016-1
Authority
Authority
Totals
$ 4,240
$ (3)
$ (192)
$ 17,784
1,876,958
-
-
4,694,749
-
153,047
336,011
489,058
1,881,198
153,044
335,819
5,201,591
-
-
68,742
68,742
6,425
148,673
249,768
419,581
696,412
-
-
1,423,513
15,000,000
-
-
15,000,000
1,211,030
-
-
2,482,071
16,913,867
148,673
318,510
19,393,907
(15,032,669)
4,371
17,309
(14,192,316)
(2,531,388)
12,318
89
(13,402,957)
$ (17,564,057)
$ 16,689
$ 17,398
$ (27,595,273)
174
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175
Statistical Section
This page left blank intentionally
City of Santa Clarita, California
Statistical Section
This part of the City of Santa Clarita's annual comprehensive 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. 177-186
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. 187-202
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. 203-209
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. 210-211
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. 212-214
176
City of Santa Clarita
Net Position by Component
Last Ten Fiscal Years Ended June 30, 2021
(accrual basis of accounting)
Governmental Activities
Net investment in capital assets
Restricted for:
Capital projects
Specific projects and programs
Total restricted
Unrestricted
Total governmental activities
net position
Business -Type Activities
Net investment in capital assets
Unrestricted
Total business -type activities
net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government
net position
FISCAL YEAR
20-21 19-20 18-19 17-18
$ 1,032,579,113 $ 984,052,712 $ 920,036,752 $ 895,056,642
147, 556, 902 146, 874, 629 119, 375,331 113, 286, 625
147, 556, 902 146, 874, 629 119, 375,331 113, 286, 625
126,571,370 80,879,095 122,991,202 85,155,060
$ 1,306,707,385 $ 1,211,806,436 $ 1,162,403,285 $ 1,093,498,327
$ 88,023,510 $ 80,308,956 $ 83,906,440 $ 79,199,471
6,895,650 (1,465,963) 269,116 (888,318)
$ 94,919,160 $ 78,842,993 $ 84,175,556 $ 78,311,153
$ 1,120,602,623 $ 1,064,361,668 $ 1,003,943,192 $ 974,256,113
147, 556, 902 146, 874, 629 119, 375,331 113, 286, 625
133,467,020 79,413,132 123,260,318 84,266,742
$ 1,401,626,545 $ 1,290,649,429 $ 1,246,578,841 $ 1,171,809,480
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.
" GASB 54-implemention date June 30, 2011.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
177
FISCAL YEAR
16-17 15-16 14-15 13-14 12-13 11-12
$ 867,144,998 $ 810,324,041 $ 818,817,043 $ 799,926,613 $ 738,271,282 $ 743,281,558
-
-
-
-
14,292,447
3,275,312
87,272,723
70,773,322
73,541,304
71,643,713
54,229,493
46,915,965
87,272,723
70,773,322
73,541,304
71,643,713
68,521,940
50,191,277
105,514,664
115,356,272
79,211,600
52,551,033
65,706,424
79,141,211
$ 1,059,932,385
$ 996,453,635
$ 971,569,947
$ 924,121,359
$ 872,499,646
$ 872,614,046
$ 79,589,102 $ 76,687,260 $ 78,495,871 $ 83,296,545 $ 76,561,407 $ 73,778,640
(1,202,362) 3,101,763 2,766,972 2,250,491 3,835,316 3,099,419
$ 78,386,740 $ 79,789,023 $ 81,262,843 $ 85,547,036 $ 80,396,723 $ 76,878,059
$ 946,734,100 $ 887,011,301 $ 897,312,914 $ 883,223,158 $ 814,832,689 $ 817,060,198
87,272,723 70,773,322 73,541,304 71,643,713 68,521,940 50,191,277
104,312,302 118,458,035 81,978,572 54,801,524 69,541,740 82,240,630
$ 1,138,319,125 $ 1,076,242,658 $ 1,052,832,790 $ 1,009,668,395 $ 952,896,369 $ 949,492,105
178
City of Santa Clarita
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2021
(accrual basis of accounting)
Expenses
Governmental Activities
General government
Public safety
Public works
Recreation and community service
Community development
Neighborhood Services
Unallocated infrastructure depreciation
Interest on long-term debt
Total governmental activities expenses
Business -Type Activities
Transit
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental Activities
Charges for services:
General government
Public safety
Public works
Recreation and community service
Community development
Neighborhood Services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
FISCAL YEAR
20-21 19-20 18-19 17-18
$ 51,594,712 $ 54,710,526 $ 62,309,457 $ 53,928,438
35,128,997
29,907,832
27,757,002
27,232,724
15,094,614
33,663,857
20,772,164
14,771,925
17,252,334
16,047,345
17,585,165
23,472,469
11,435,676
8,942,864
7,214,786
6,957,438
13,865,065
12,862,529
12,622,824
1,082,836
21,543,801
21,043,711
20,630,522
19,259,333
3,742,582
3,549,649
2,589,767
1,638,960
169,657,781
180,728,313
171,481,687
148,344,123
27,898,955 31,060,676 32,065,240 28,309,870
27,898,955 31,060,676 32,065,240 28,309,870
$ 197,556,736 $ 211,788,989 $ 203,546,927 $ 176,653,993
$ 9,254,707 $ 8,215,989 $ 8,547,181 $ 10,007,154
1,303,759
1,484,005
1,937,603
1,429,900
3,627,549
12,201,244
14,669,328
15,792,197
16,419,310
3,635,790
6,344,242
8,306,076
1,899,854
1,552,869
1,704,920
1,901,897
31,252,912
30,575,191
29,338,661
27,090,508
44,524,768
22,066,816
13,574,920
9,259,079
42,849,916
41,462,296
59,565,349
31,807,581
151,132,775
121,194,200
135, 682,204
105,594,392
Business -Type Activities
Charges for services:
Transit
5,799,364
6,785,178
7,662,186
6,987,488
Operating grants and contributions
29,444,844
13,405,112
15,292,991
10,226,946
Capital grants and contributions
9,036,527
5,701,142
10,434,282
3,102,269
Total business -type activities program revenues
44,280,735
25,891,432
33,389,459
20,316,703
Total primary government revenues $ 195,413,510 $ 147,085,632 $ 169,071,663 $ 125,911,095
Source: City of Santa Clarita, Administrative Services Department - Finance Division
179
FISCAL YEAR
16-17 15-16 14-15 13-14 12-13 11-12
$ 44,390,099
$ 39,155,006
$ 46,224,813
$ 41,807,284
$ 35,921,943
$ 33,664,470
25,231,712
23,778,931
22,235,368
22,187,434
19,940,098
27,391,075
23,563,825
38,223,035
36,103,144
26,183,862
28,651,261
30,623,718
16,224,154
15,594,958
22,619,337
22,550,301
21,809,820
19,282,538
7,057,301
10,505,906
5,720,237
6,193,101
7,214,293
5,896,640
1,815,637
-
-
-
-
-
18,833,113
18,342,933
18,072,657
17,561,539
15,163,864
16,844,238
1,378,888
2,194,181
1,827,094
1,872,832
1,992,574
3,391,058
138, 494, 729
147, 794, 950
152, 802, 650
138, 356, 353
130, 693, 853
137, 093, 737
29,858,499 28,127,407 28,062,668 26,819,161 25,653,753 24,930,635
29,858,499 28,127,407 28,062,668 26,819,161 25,653,753 24,930,635
$ 168,353,228 $ 175,922,357 $ 180,865,318 $ 165,175,514 $ 156,347,606 $ 162,024,372
$ 6,740,507
$ 22,914,059
$ 26,783,616
$ 31,970,148
$ 24,323,027 $
13,719,117
1,231,974
1,162,551
1,605,059
1,847,403
2,284,334
2,079,109
11,549,806
16,407,616
13,056,586
12,463,046
9,943,014
7,209,724
6,191,011
8,142,336
4,525,662
4,390,686
4,371,888
4,156,386
1,906,079
1,843,296
1,774,482
1,961,243
1,61 1,184
5,152,484
25,044,704
-
-
-
-
-
5,977,971
7,687,397
12,561,608
19,421,199
9,061,950
16,032,433
55,220,052
23,629,474
30,107,231
22,530,841
33,585,797
28,616,388
113,862,104
81,786,729
90,414,244
94,584,566
85,181,194
76,965,641
7,231,136
7,546,433
6,779,579
7,587,497
6,863,086
6,616,778
8,459,236
9,153,499
8,228,348
8,984,127
8,579,209
7,385,264
9,138,643
3,504,305
1,423,440
10,804,747
8,513,238
5,041,992
24,829,015
20,204,237
16,431,367
27,376,371
23,955,533
19,044,034
$ 138,691,119 $ 101,990,966 $ 106,845,611 $ 121,960,937 $ 109,136,727 $ 96,009,675
180
City of Santa Clarita
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2021
(accrual basis of accounting)
Net Revenues (expenses):
Governmental activities
Business -type activities
Total net revenues (expenses)
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes
Property taxes
Franchise taxes
Real property transfer taxes
Transient occupancy taxes
Unrestricted revenue in lieu of motor vehicle taxes
Unrestricted revenue in lieu of sales taxes
Grants and contributions not restricted
to specific programs
Unrestricted investment earnings
Miscellaneous revenue
Gain on sale of capital asset
Transfers
Reversal of Allowance for Notes to RDA Successor Agency
Capital Contributions
Total governmental activities
Business -type activities
Unrestricted investment earnings
Gain on sale of capital asset
Miscellaneous revenue
Transfers
Total business -type activities
Total primary government
Extraordinary Item
Gain from dissolution of former redevelopment
agency of the City of Santa Clarita
Change in Net Position
Governmental activities
Business -type activities
Total primary government
FISCAL YEAR
20-21 19-20 18-19 17-18
(18,525,006) (59,534,113) (35,799,482) (42,749,731)
16,381,780 (5,169,244) 1,324,219 (7,993,167)
(2,143,226) (64,703,357) (34,475,263) (50,742,898)
$ 43,197,889 $ 36,621,145 $ 38,546,183 $ 37,252,523
52,981,738
46,420,350
43,761,925
42,284,749
9,493,742
8,604,265
8,369,481
8,523,791
2,010,033
1,418,026
1,227,947
1,320,018
2,275,383
2,726,113
3,352,776
3,489,281
173,463
207,931
147,752
162,103
634,957
12,311,467
12,528,843
591,177
2,311,282
472,227
1,206,740
2,661,916
-
2,050
(1,600)
10,935
347,468
153,690
(4,435,608)
(5,924,278)
113,425,955
108,937,264
104,704,439
90,372,215
41,855
(9,629)
32,613
(1,242)
-
71,963
20,238
(347,468)
(153,690)
4,435,608
5,924,278
(305,613)
(163,319)
4,540,184
5,943,274
$ 113,120,342
$ 108,773,945
$ 109,244,623 $
96,315,489
$ 94,900,949 $ 49,403,151 $ 68,904,957 $ 47,622,484
16,076,167 (5,332,563) 5,864,403 (2,049,893)
$ 110,977,116 $ 44,070,588 $ 74,769,360 $ 45,572,591
Source: City of Santa Clarita, Administrative Services Department - Finance Division
181
FISCAL YEAR
16-17 15-16 14-15 13-14 12-13 11-12
(24,060,399) (66,008,221) $ (62,388,406) $ (43,771,787) $ (68,670,913) $ (60,128,096)
(5,029,484) (7,923,170) (11,631301) 557,210 2,403,788 (5,886,601)
(29,089,883) (73,931,391) $ (74,019:707) $ (43,214,577) $ (66,267,125) $ (66,014,697)
$ 36,147,727 $ 37,807,385 $ 34,355,412 $ 33,480,522 $ 32,057,358 $ 28,828,139
39,924,749
40,072,597
38,556,890
35,652,080
32,341,369
34,818,426
8,208,347
8,392,789
8,512,818
7,796,070
7,141,953
6,920,244
1,275,363
1,383,473
1,169,780
947,470
706,180
590,474
3,639,264
3,813,437
3,124,904
2,781,527
2,556,774
2,380,547
144,665
129,053
85,703
86,531
91,062
-
-
-
-
-
87,883
1,052,254
4,142,959
2,240,594
2,090,322
(82,870)
1,509,201
737,513
1,080,771
678,937
781,986
310,676
5,372,890
11,711
459,709
27,410
18,174
-
-
(3,602,443)
(6,390,264)
(7,329,516)
(5,692,032)
(5,187,224)
(6,844,199)
12,633,832
-
-
15,780,230
-
-
-
87,539,150
90,891,909
109,836,994
77,942,650
69,935,278
73,663,605
(28,735)
59,086
17,592
4,791
29,660
147
53,223
-
-
-
-
-
3,602,443
6,390,264
7,329,516
5,692,032
5,187,224
6,844,199
3,626,931
6,449,350
7,347,108
5,696,823
5,216,884
6,844,346
$ 91,166,081 $
97,341,259
$ 117,184,102 $
83,639,473
$ 75,152,162 $
80,507,951
$ $ $ $ 40,413,284
$ 63,478,751 $ 24,883,688 $ 47,448,588 $ 34,170,863 $ 1,264,365 $ 53,948,793
(1,402,553) (1,473,820) (4,284,193) 6,254,033 7,620,672 957,745
$ 62,076,198 $ 23,409,868 $ 43,164,395 $ 40,424,896 $ 8,885,037 $ 54,906,538
182
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2021
(modified accrual basis of accounting)
FISCAL YEAR
20-21 19-20 18-19 17-18 16-17
General Fund
Reserved
$
$
$
$
$
Unreserved
Nonspendable
7,474,892
9,810,973
12,050,141
12,390,885
15,742,945
Restricted
9,644,574
23,063,669
-
-
-
Committed
-
-
-
-
-
Assigned
110,906,093
97,293,470
120,981,128
88,674,761
79,367,084
Unassigned
59,968,580
60,273,125
58,930,970
47,116,235
53,905,237
Total General Fund
$187,994,139
$190,441,237
$191,962,239
$148,181,881
$149,015,266
All Other Governmental Funds
Reserved
$
$
$
$
$
Unreserved:
Special revenue funds
Debt service fund
Capital projects fund
-
Nonspendable
491,504
575,276
772,627
5,882
976,841
Restricted
123,614,422
112,631,199
108,394,699
113,286,625
86,664,536
Committed
832
9,277
13,460
15,008
14,000
Assigned
755,174
791,914
1,040,181
1,117,165
2,151,360
Unassigned
(869,803)
(3,127,904)
(3,266,496)
(6,786,531)
(5,897,790)
Total all other governmental funds
$123,992,129
$110,879,762
$106,954,471
$107,638,149
$ 83,908,947
FUND BALANCES
Fiscal Year Ended June 30, 2021
■ All Other Governmental
Funds
40% 0 General Fund
60%
Note:
(1) Beginning in FY 2011, the fund balance classification changed in accordance with GASB 54
Source: City of Santa Clarita, Administrative Services Department - Finance Division
183
FISCAL YEAR
(1)
15-16 14-15 13-14 12-13 11-12
11,108,252 11,024,338 11,519,143 11,910,059 18,902,350
- - - - 66,257
79,367,084 55,336,807 51,718,096 47,106,536 309,078
50,669,580 50,141,486 45,654,640 35,320,706 50,664,338
$141,144,916 $116,502,631 $108,891,879 $ 94,337,301 $ 69,942,023
1,134,103
1,455,067
606,996
670,612
28,885,983
86,240,243
85,763,293
84,268,720
68,957,999
46,915,965
14,000
14,000
612,829
716,826
-
1,881,728
1,843,822
3,412,127
4,466,367
3,275,312
(6,975,198)
(8,633,303)
(9,300,647)
(10,665,597)
(56,718,519)
$ 82,294,876
$ 80,442,879
$ 79,600,025
$ 64,146,207
$ 22,358,741
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
140
123.99
120
106.95
100 79.60
83.91
w 80 82.29
c
� 80.44
60 64.14
40
$22 6
20 -
0
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21
Fiscal Year
184
City of Santa Clarita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2021
(modified accrual basis of accounting)
Revenues:
Taxes
Special assessments
Licenses and permits
Developer fees
Investment income
Intergovernmental
Fines and forfeitures
Service charges
Other revenues
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Recreation and community service
Community development
Neighborhood services
Administration and personnel services
Capital outlay
Debt service:
Principal
Interest, professional services and fiscal charges
Redemption of district credits
Total Expenditures
Excess of Revenues Over (Under) Expenditures
FISCAL YEAR
20-21 19-20 18-19 17-18 16-17
$110,132,248
$ 95,997,830
$ 95,406,064
$ 93,032,465
$ 89,340,115
35,634,980
-
-
-
-
11,498,980
7,538,878
9,951,586
7,688,342
7,408,357
11,094,312
2,917,250
6,458,182
9,888,734
4,211,890
664,575
11,777,753
12,045,344
595,650
1,030,146
43,058,715
33,746,890
36,086,192
36,491,705
23,922,361
1,702,622
1,736,201
1,851,190
1,372,687
1,117,620
6,949,375
42,052,534
42,117,270
41,793,226
36,639,646
13,984,800
3,508,593
1,677,809
1,744,075
690,974
234,720,607 199,275,929 205,593,637 192,606,884 164,361,109
46,060,921
50,929,600
59,638,451
50,728,642
41,138,676
35,570,621
30,511,022
28,342,578
27,217,567
25,214,091
90,316,078
72,953,711
51,343,366
57,213,646
43,459,620
14,917,730
13,846,768
15,450,815
21,589,318
20,446,596
11,556,377
8,709,340
7,344,064
6,988,331
6,583,484
13,885,978
13,100,419
12,823,905
1,162,647
1,667,058
67,889
-
-
-
-
20,702,698
4,213,593
5,053,670
12,083,887
9,759,258
2,315,371
2,482,109
2,833,260
2,138,803
2,167,429
3,363,625
2,901,257
2,520,153
1,647,842
1,237,357
278,843
-
-
-
-
239,036,131
199,647,819
185,350,262
180,770,683
151,673,569
(4,315,524)
(371,890)
20,243,375
11,836,201
12,687,540
Other Financing Sources (Uses)
Revenue bonds issued/issuance premium
14,270,000
25,850,000
15,848,271
Proceeds of long-term debt
225,409
1,463,083
(35,099)
Proceeds from capital lease
164,970
-
-
-
Transfers in
43,175,925
20,787,975
56,075,180
25,690,566
8,046,713
Transfers out
(42,855,511)
(18,011,796)
(60,534,955)
(30,444,125)
(11,249,832)
Issuance of district credits
-
-
-
-
Total Other Financing Sources (Uses)
14,980,793
2,776,179
22,853,308
11,059,613
(3,203,119)
Extraordinary Item:
Dissolution of Santa Clarita Redevelopment Agency
-
-
-
-
-
Net change in fund balances
10,665,269
2,404,289
43,096,683
22,895,814
9,484,421
Fund balances - Beginning of Year
301,320,999
298,916,710
255,820,027
232,924,213
223,439,792
Fund balances - End of Year
$311,986,268
$301,320,999
$298,916,710
$255,820,027
$232,924,213
Debt service as percentage of noncapital expenditures 4.12% 3.54% 3.69% 3.10% 3.06%
Note:
(1) Beginning in FY 2011, the fund balance classification changed in accordance with GASB 54
Source: City of Santa Clarita, Administrative Services Department - Finance Division
185
FISCAL YEAR
15-16 14-15 13-14 12-13 11-12
$ 91,598,734 $ 85,789,556 $ 80,285,660 $ 73,972,006 $ 73,625,713
7,283,898
5,567,280
5,366,972
4,246,957
4,097,709
6,272,799
10,764,554
2,600,997
15,828,388
7,181,986
3,937,618
2,026,507
1,911,491
1,702,006
2,739,794
31,380,753
31,953,692
34,355,734
27,452,216
28,375,142
973,753
1,261,752
1,661,157
2,114,166
1,674,085
36,828,067
37,738,754
42,156,582
36,311,324
28,145,012
1,789,724
511,117
5,943,608
332,146
6,425,792
180,065,346 175,613,212 174,282,201 161,959,209 152,265,233
35,969,981
43,196,168
36,294,205
35,433,288
50,816,449
23,777,171
22,188,641
22,137,338
19,894,859
25,412,420
21,327,662
36,082,625
24,385,865
27,968,407
20,753,607
37,937,050
21,007,651
20,498,108
19,824,550
19,523,584
10,673,993
5,883,441
6,185,263
7,252,424
5,923,872
10,562,953
23,224,180
36,580,589
23,837,533
27,403,439
2,852,140
1,992,479
1,837,174
1,750,538
2,338,787
4,539,815
1,850,703
1,885,546
2,039,144
3,743,134
-
5,105,402
-
14,368,419
-
147,640,765
160,531,290
149,804,088
152,369,162
155,915,292
32,424,581
15,081,922
24,478,113
9,590,047
(3,650,059)
32,997,352
(32,907,353)
-
-
- -
-
252,068
11,940,563
7,850,640 9,757,447
9,069,495
16,538,674
(17,960,861)
(14,478,956) (15,524,498)
(14,256,719)
(29,810,448)
11,297,334
12,270,335
(5,930,299)
(6,628,316) 5,530,283
7,083,111
(13,019,706)
8,317,116
26,494,282 8,453,606 30,008,396 16,673,158 (8,352,649)
196,945,510 188,491,904 158,483,508 141,810,350 100,653,413
$ 223,439,792 $ 196,945,510 $ 188,491,904 $ 158,483,508 $ 92,300,764
5.72% 2.80% 3.26% 2.95% 4.40%
186
City of Santa Clarita
Assessed Values ") and Actual Values of Taxable Property
Last Ten Fiscal Years
STATE ASSESSED
LOCALLY ASSESSED
SECURED (UTILITY)
SECURED
Fiscal
IMPROVE- PERSONAL
IMPROVE-
PERSONAL
OTHER
Year
LAND
MENTS PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
2011-12
1,431,971
2,264,780
3,696,751
9,097,382,703
11,485,773,659
107,089,927
(372,583,638)
20,317,662,651
2012-13
1,431,971
2,264,780
3,696,751
8,882,930,332
11,516,988,299
111,202,431
(400,045,608)
20,111,075,454
2013-14
1,431,971
2,264,780
3,696,751
9,989,545,816
13,726,755,146
107,166,367
(412,668,046)
23,410,799,283
2014-15
1,431,971
2,264,780
3,696,751
10,820,572,961
14,749,259,449
103,844,310
(453,562,893)
25,220,113,827
2015-16
1,431,971
2,264,780
3,696,751
11,358,919,366
15,476,133,167
109,544,613
(471,097,603)
26,473,499,543
2016-17
1,431,971
2,264,780
3,696,751
11,931,551,116
16,179,111,473
123,045,242
(348,794,590)
27,884,913,241
2017-18
2,368,193
2,208,225
4,576,418
12,988,746,949
17,460,522,327
136,887,194
(682,936,469)
29,903,220,001
2018-19
2,368,193
2,208,225
4,576,418
13,850,827,148
18,431,289,844
163,768,504
(817,961,355)
31,627,924,141
2019-20
2,076,418
2,208,225
4,284,643
15,147,396,256
19,912,518,511
149,977,284
(890,135,683)
34,319,756,368
2020-21
2,076,418
2,208,225
4,284,643
15,925,933,378
21,099,965,791
161,592,520
(1,093,220,517)
36,094,271,172
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2021
PERSONAL
PROPERTY, 2.01 %
56.16%
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 2020-21
187
LOCALLY ASSESSED TOTALS
HOME -
UNSECURED
BEFORE
TAXABLE
%
TOTAL
OWNER
IMPROVE-
PERSONAL
OTHER
OTHER
ASSESSED
INCR.
DIRECT
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
EXEMPTIONS
VALUE
(DECK.)
RATE i's';
TAX RELIEF
314,286,482
548,430,090
(15,137,342)
847,579,230
21,556,659,612
21,168,938,632
0.26%
0.07291%
220,496,294
349,415,601
534,947,944
(13,693,787)
870,669,758
21,399,181,358
20,985,441,963
-0.87%
0.07183%
216,163,460
329,350,845
541,533,568
(15,907,716)
854,976,697
24,698,048,493
24,269,472,731
15.65%
0.09170%
236,577,388
339,544,656
561,740,289
(13,152,888)
888,132,057
26,578,658,416
26,111,942,635
7.59%
0.09163%
232,799,644
299,024,341
569,926,540
(15,283,837)
853,667,044
27,817,244,778
27,330,863,338
4.67%
0.09169%
230,402,082
265,891,622
547,111,240
(15,791,822)
797,211,040
29,050,407,444
28,685,821,032
4.96%
0.09259%
226,031,427
280,824,664
549,107,476
(10,383,140)
819,549,000
31,420,665,028
30,727,345,419
7.12%
0.09111%
228,373,713
274,390,510
584,621,318
(10,543,790)
848,468,038
33,309,473,742
32,480,968,597
5.71%
0.09126%
225,813,184
275,047,748
584,844,131
(9,114,469)
850,777,410
36,074,068,573
35,174,818,421
8.29%
0.08989%
230,072,192
287,998,801
605,666,637
(8,808,819)
884,856,619
38,085,441,770
36,983,412,434
5.14%
0.09054%
223,881,831
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
' $36,983
• $35,175
• $32,481
■ $30,727
0
$27,331
■ $26,112
0 $24,269
$20,985
0
m
ILI
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21
Fiscal Year
188
City of Santa Clarita
Redevelopment Agency '
Assessed Values (2) and Actual Values of Taxable Property
Last Ten Fiscal Years
STATE ASSESSED
LOCALLY ASSESSED
SECURED (UTILITY)
SECURED
FISCAL
IMPROVE -PERSONAL
IMPROVE- PERSONAL OTHER
YEAR
LAND MENTS PROPERTY TOTAL
LAND
MENTS PROPERTY EXEMPTIONS
TOTAL
2011-12
-
322,803,745
214,686,716 1,933,165 (7,016,751) 532,406,875
2012-13
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2013-14
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2014-15
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2015-16
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2016-17
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2017-18
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2018-19
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2019-20
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
2020-21
N/A N/A N/A N/A
N/A
N/A N/A N/A
N/A
(1)
The Redevelopment Agency of the City was established
on November 28, 1989, pursuant to the 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
fiscal year 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%a of full value in
accordance with Section 135 of the California Revenue and Taxation Code.
Source: County of Los Angeles, Auditor-Controller/Tax Division
189
LOCALLY ASSESSED
TOTALS
HOME -
UNSECURED
TOTALS
TAXABLE
OWNER
IMPROVE-
PERSONAL OTHER
BEFORE
ASSESSED
VALUE
PROPERTY
MENTS
PROPERTY EXEMPTIONS
TOTAL
BASE YEAR
BASE YEAR
VALUE
GROWTH
TAX RELIEF
34,353,633
46,665,422 (102,000)
80,917,055
613,323,930
(266,351,517)
346,972,413
(1,755,321)
1,865,922
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A N/A
N/A
N/A
N/A
N/A
N/A
N/A
190
City of Santa Clarita
Assessed Values —Taxable Property
Last Ten Fiscal Years
FISCAL YEAR
CATEGORY 20-21 19-20 18-19 17-18 16-17
Residential
Commercial
Industrial
Irrigated
Dry farm
Recreational
Institutional
Government
Miscellaneous
Vacant land
SBE Nonunitary
Possessory Int.
Unsecured
Unknown
TOTALS:
30,000
25,000
N
c 20,000
c
15,000
10,000
5,000
$ 29,068,019,284 $
27,571,753,581
$ 25,140,365,171
$ 23,734,569,687 $
21,784,467,001
3,866,268,970
3,681,744,410
3,557,018,366
3,399,444,104
3,248,599,972
1,955,686,889
1,878,969,596
1,861,078,681
1,790,582,919
1,706,030,432
3,375,991
3,341,172
3,707,035
2,993,570
2,960,760
118,115,005
116,868,740
113,347,606
106,578,193
99,802,827
259,899,765
233,475,135
230,449,000
193,500,837
213,333,035
1,357,829
1,323,707
371,122
363,846
356,714
352,996
346,079
339,297
315,717
309,530
677,706,729
702,751,187
593,951,571
554,513,132
449,270,431
4,284,643
4,284,643
4,576,418
4,576,418
3,696,751
143,487,714
129,182,761
127,296,292
120,357,965
117, 718,179
884,856,619
850,777,410
848,468,038
819,549,000
797,363,610
-
-
-
31
20
$ 36,983,412,434 $ 35,174,818,421 $32,480,968,597 $30,727,345,419 $28,423,909,262
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21
Fiscal Year
a Residential
■ Commercial
O Industrial
■ Vacant land
* All others
191
FISCAL YEAR
15-16 14-15 13-14 12-13 11-12
$ 20,809,579,112
3,059,958,633
1,799,119,742
2,936,120
$19,755,522,402
2,952,772,231
1,642,718,866
2,834,466
$18,138,258,224
2,847,760,176
1,561,091,316
2,827,311
$14,971,655,728
2,794,405,083
1,413,623,056
2,796,388
$15,212,586,674
2,748,247,727
1,455,126,754
3,016,072
104,324,505
101,870,300
100,138,918
104,981,278
106,506,146
162,056,819
142,862,940
136,824,169
132,119,758
125,982,002
220,358
216,042
215,066
210,850
206,717
348,240
341,421
1,017,342
864,299
847,359
419,750,992
507,997,067
509,125,263
565,117,297
533,608,937
3,696,751
3,696,751
3,696,751
3,696,751
3,696,751
115,205,002
112,978,072
113,541,478
125,301,717
131,534,263
853,667,044
888,132,057
854,976,697
870,669,758
847,579,230
20
20
20
-
-
$ 27,330,863,338 $26,111,942,635 $24,269,472,731 $20,985,441,963 $21,168,938,632
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.
192
City of Santa Clarita
Assessed Values —Use Category Summary
Fiscal Year 2020-21
CATEGORY
PARCELS
ASSESSED
VALUE
PERCENT
EXEMPTIONS
NET
TAXABLE
VALUE
PERCENT
Residential
62,102
$ 29,158,139,375
76.4%
$ 90,120,091
$ 29,068,019,284
78.60%
Commercial
926
3,930,157,229
10.3%
$ 63,888,259
3,866,268,970
10.45%
Industrial
746
2,185,015,808
5.7%
$ 229,328,919
1,955,686,889
5.29%
Irrigated
6
3,375,991
0.0%
$ -
3,375,991
0.01 %
Recreational
35
121,268,242
0.3%
$ 3,153,237
118,115,005
0.32%
Institutional
101
963,196,007
2.5%
$ 703,296,242
259,899,765
0.70%
Government
7
1,357,829
0.0%
$ -
1,357,829
0.00%
Miscellaneous
8
352,996
0.0%
$ -
352,996
0.00%
Vacant land
3,692
680,882,440
1.8%
$ 3,175,711
677,706,729
1.83%
SBE Nonunitary
(14)
4,284,643
0.0%
$ -
4,284,643
0.01%
Possessory Int.
(2,094)
143,745,772
0.4%
$ 258,058
143,487,714
0.39%
Unsecured
(4,509)
893,665,438
2.3%
$ 8,808,819
884,856,619
2.39%
Exempt
1,234
60,873,039
0.2%
$ 60,873,039
-
0.00%
TOTALS: 62,240 $ 38,146,314,809 100.00% $ 1,162,902,375 $ 36,983,412,434 100.00%
ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2020-21 Fiscal Year 2020-21
Industrial,
5.73%
10.30%
All Others,
7.53%
Residential,
76.44%
orindustrial,L ■ All Others,
5.29% 5.66%
.. i
Commercial
10.45%
Source: HdL Coren & Cone, Los Angeles County Assessor 2020-21 Combined Tax Rolls.
Residential,
78.60%
193
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
LOS
SCV
COUNTY COUNTY
Fiscal
ANGELES
WATER
SCHOOL SANITATION FLOOD
Year
GENERAL COUNTY
AGENCY
DISTRICTS DISTRICTS CONTROL
TOTAL
2011-12
1.000000
0.070600
0.091457
1.162057
2012-13
1.000000
0.070600
0.112835
1.183435
2013-14
1.000000
0.070600
0.120330
1.190930
2014-15
1.000000
0.070600
0.118570
1.189170
2015-16
1.000000
0.070600
0.116070
1.186670
2016-17
1.000000
0.070600
0.119436
1.190036
2017-18
1.000000
0.070600
0.135348
1.205948
2018-19
1.000000
0.070600
0.496140
1.566740
2019-20
1.000000
0.070600
0.357180
1.427780
2020-21
1.000000
0.070600
0.404980
1.475580
1.200000
1.000000
0.800000
0.600000
0.400000
0.200000
0.000000
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2020-21
GENERAL
SCHOOL
DISTRICTS
SCV
WATER
AGENCY
COUNTY FLOOD
CONTROL
SANITATION
LA COUNTY DISTRICTS
Source: HdL Coren & Cone, Los Angeles County Assessor 2020-21 Tax Rate Table
194
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies
City General Fund Direct Rates
RDA Incremental Rate
Total Direct Rate
City Share
Prop. 13
of 1% Total City
plus applicable
Roll Year per Prop. 13 Debt Rates Rates
voter -approved debt
2020-21 0.086630 0.000000 0.086630
0.00000%
9.05400%
Agency
2020-21
City of Santa Clarita Tax District 1 (249.01)
0.05920
SCV Water Agency (302.01)
0.06550
Children's Institutional Tuition Fund (400.21)
0.00327
Consolidated Fire Protection District of LA Co. (007.30)
0.18090
County School Service Fund Saugus Union (581.06)
0.00905
County School Service Hart William S. Hart (757.06)
0.00039
County School Services (400.15)
0.00165
Development Center Handicapped Saugus Union (581.07)
0.00104
Educational Augmentation Fund Impound (400.01)
0.13200
Educational Revenue Augmentation Fund (ERAF) (400.00)
0.05430
Greater LA Co. Vector Control (061.80)
0.00031
Santa Clarita Library (249.56)
0.02740
LA County Fire - Ffw (007.31)
0.00550
LA County Flood Control Improvement District (030.10)
0.00217
LA County Flood Control Maintenance (030.70)
0.01210
LA County General (001.05)
0.18580
LA County Accum Cap Outlay (001.20)
0.00013
Saugus Union School District (581.01)
0.06280
Santa Clarita Community College (814.04)
0.04320
Santa Clarita Valley Sanitation Dist. LA Co.
0.00989
William S. Hart Elementary School Fund (757.07)
0.04940
William S. Hart Union High (757.02)
0.09400
Total Prop. 13 Rate:
1.00000
SCV Water Agency (302.01)
0.065500
Newhall Elementary School District Debt Services 1999 Ser. A (581.52)
0.010562
Newhall Elementary School District Debt Services 1999 Ser. B (581.53)
0.026312
William S. Hart Unified Debt Services 2001 Ser. B (757.52)
0.014137
William S. Hart Un.Hsd Debt Services 2008 Ser. B (757.54)
0.004521
William S. Hart Un.Hsd Debt Services 2012 Refunding Bonds (757.55)
0.011015
William S. Hart Un.Hsd Debt Services 2008 Ser. C (757.56)
0.015624
William S. Hart Un.Hsd Debt Services 2013 Ref. Bds. (757.57)
0.009345
Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52)
0.003296
Santa Clarita Community College Debt Services 2006 Ser. 2012 (814.56)
0.000321
Santa Clarita Community College Debt Services 2013 Refunding Bonds(81,
0.004871
Santa Clarita Community College Debt Services 2006 Ser. 2014 (814.58)
0.002450
Santa Clarita Community College Debt Services 2016 Refunding Bonds (81
0.010192
Santa Clarita Community College Debt Services 2006 Ser. 2016 (814.60)
0.001555
Santa Clarita Community College Debt Services 2016 Ser. 2017 (814.61)
0.003734
Santa Clarita Community College Debt Services 2016 Ser. 2019 (814.62)
0.010774
Santa Clarita Community College Debt Services 2019 Refunding Bonds (81,
0.003353
Total Tax Rate
0.197562
Source: HdL Coren & Cone, Los Angeles County Assessor 2020/21 Tax Rate Table
Notes: General fund tax rates are
representative and based upon the direct
and overlapping rates for the largest
General Fund tax rates area (TRA) by net
taxable value. Total Direct Rate is the
weighted average of all individual direct
rates applied by the government preparing
the statistical section information.
The percentages presented in the columns
above do not sum across rows. In 1978
California voters passed Proposition 13,
which set the property tax at a 1.00% fixed
amount. This 1.00% is shared by all the
taxing agencies for which the subject
property resides within. In addition to the
1.00% fixed amount, property owners are
charged taxes as a percentage of assessed
property values for the payment of any
voter -approved bonds.
195
City of Santa Clarita
Principal Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
FISCAL YEAR 2020-21
PERCENT of
Number TOTAL TOTAL CITY
of ASSESSED ASSESSED
OWNER/TAXPAYER Parcels VALUE VALUE
Valencia Town Center Venture LP
Park Sierra Properties
PFI Valencia LLC
WESCO IV LLC
Saugus Colony Limited
IVT River Oaks Valencia LLC
FOR Valencia LLC
FOR The Oaks LLC
Valencia Biomedical Park LLC
ARC SLSTCCA001 LLC
Mann Biomedical Park LLC
Total
All Others
Total Assessed Valuation
FISCAL YEAR 2011-12
PERCENT of
Number TOTAL TOTAL CITY
of ASSESSED ASSESSED
OWNER/TAXPAYER Parcels VALUE VALUE
17 $
406,490,238
1.12 %
Valencia Town Center Venture
15
148,438,396
0.41
VTC Business Center
9
140,716,173
0.39
FOR Valencia LLC
2
126,965,014
0.35
Casden Santa Clarita LLC
19
125,702,773
0.35
Walmart Real Estate Business Trust
7
119,645,996
0.33
RREEF America REIT II Corp
218
111,495,487
0.31
Prado Town Center West LLC
28
109,272,577
0.30
Time Warner NY Cable LLC
15
107,326,854
0.30
DSEA River Oaks LLC
4
105,498,161
0.29
ERP Operating LP
n/a
0.00
Mann Biomedical Park LLC
334 1,501,551,669 4.15
34,645,351,954 95.85
$ 36,146,903,623 100.00
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone, LA County Assessor 2020/21 Combined Tax Rolls
18
$ 343,427,920
1.63
10
153,382,773
0.73
218
95,241,618
0.45
25
61,750,408
0.29
9
77,463,294
0.37
2
70,987,026
0.34
n/a
0.00
14
69,398,405
0.33
7
55,302,873
0.26
3
54,801,133
0.26
2
53,998,843
0.26
308
1,035,754,293
4.91
20,068,697,192
95.09
$ 21,104,451,485
100.00
196
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
FISCAL
YEAR
TAXES
LEVIED
PERCENT
COLLECTIONS COLLECTIONS
COLLECTIONS TOTAL
IN SUBSEQUENT COLLECTIONS
YEARS TO DATE
PERCENT
COLLECTIONS
TO DATE
2011-12
14,299,999
13,999,770
97.9%
49,862 14,049,633
98.25%
2012-13
18,634,850
18,297,746
98.2%
- 18,297,746
98.19%
2013-14
21,446,963
21,128,332
98.5%
21,128,332
98.51 %
2014-15
23,131,317
22,795,838
98.5%
22,795,838
98.55%
2015-16
24,304,887
23,957,604
98.6%
23,957,604
98.57%
2016-17
25,483,385
25,178,564
98.8%
25,178,564
98.80%
2017-18
27,299,254
26,957,834
98.7%
26,957,834
98.75%
2018-19
28,692,974
28,469,759
99.2%
28,469,759
99.22%
2019-20
30,653,870
30,235,002
98.6%
30,235,002
98.63%
2020-21
32,544,160
32,250,334
99.1%
32,250,334
99.10%
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
FISCALYEAR
■LEVIES OCOLLECTIONS DELINQUENT AMOUNT
NOTES:
Article XIII-A of the Constitution of the State of California, adopted by the electorate in June 1978,
precludes the City from a local property tax levy. All general-purpose property taxes are levied by
the County and allocated to other governmental entities on a predetermined formula.
The above figures include secured property taxes only.
Prior to the implementation of GASB 44 in FY 2006, collections in subsequent years were not required
to be reported by tax year. Beginning in FY 2007, collections in subsequent years are included.
Source: County of Los Angeles, Department of Auditor -Controller
197
City of Santa Clarita
Successor Agency
Top Property Owners Based on Net Values
Fiscal Year 2020-21
Owner
1 SPECTRUM PACIFIC WEST LLC
2 NEWHALL BLISS LLC
3 OLD TOWN MAIN LLC
(Pending Appeals On Parcels)
4 SAUGUS STATION LLC
5 JDH
6 PETER ANDREW COELER
7 LYONS PROPERTIES LIMITED
(Pending Appeals On Parcels)
8 TELFAIR CORPORATION
9 25805 SAN FERNANDO ROAD LLC
10 RFT SPROUTS LLC ET AL
Top Ten Total
Agency Total
Incremental Net AV Total
Source: HdL Coren & Cone
Secured
Unsecured
Combined
Parcels
Value
% of
Net AV
Parcels
Values
% of
Net AV
Value
% of
Net AV
- $
-
0.00%
3
$47,072,718
57.88%
$ 47,072,718
6.10%
10
22,197,144
3.22%
0.00%
22,197,144
2.88%
1
20,150,964
2.92%
0.00%
20,150,964
2.61%
20
19,849,921
2.88%
1
119,900
0.15%
19,969,821
2.59%
3
12,015,190
1.74%
12,015,190
1.56%
3
11,211,250
1.62%
1
6,548
0.01 %
11,217,798
1.45%
1
11,123,092
1.61 %
-
0.00%
11,123,092
1.44%
2
9,570,847
1.39%
1
8,881,741
1.29%
3
8,501,372
1.23%
44
$ 123,501,521
17.89% 5
690,233,000
$ 443,864,933
27.82%
0.00% 9,570,847 1.24%
0.00% 8,881,741 1.15%
0.00% 8,501,372 1.10%
$47,199,166 58.04% $ 170,700,687 22.12%
81,327,935 771,560,935
$63,396,283 74.45% $507,261,216 33.65%
198
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199
City of Santa Clarita
Successor Agency
Project Area Assessment Appeals Summary and Tax Collection History
Fiscal Years 2011-12 Through 2020-21
Project Area Assessment Appeals Summary—FY 2020-21
Estimated
No. of No. of No. & Value of Estimated No. Reduction on
Total No. of Resolved Successful Average Appeals of Appeals Pending Appeals
Appeals Appeals Appeals Reduction Pending Allowed Allowed
123 106 95 52.3% 26 / $178,959,752 72 $ 42,869,279
Tax Collection History
For Fiscal Years 2010-11 Throuah 2019-20
Current Year
Current Year Prior Year Collection Total Collection
Year Tax Levy Collection Collection Total Percentage Percentage
2011-12 "'
3,762,457
2,934,904
218,094
3,152,998
78%
84%
2012-13121
3,485,808
2,786,791
275,290
3,062,081
80%
88%
2013-14121
3,526,463
2,828,495
815,124
3,643,619
80%
103%
2014-15
"' 3,836,835
3,185,967
158,652
3,344,619
83%
87%
2015-16121
3,579,829
3,430,748
518,292
3,704,259
96%
103%
2016-17121
4,063,020
3,819,731
797,178
3,983,145
94%
98%
2017-18121
4,188,893
3,944,498
860,267
4,046,235
94%
97%
2018-19
(2) 4,405,493
4,363,813
2,142,067
5,328,034
99%
121%
2019-20
(21 4,715,737
4,618,068
1,503,717
4,689,684
98%
99%
2020-21
(2) 5,123,622
5,012,407
(66,406)
4,946,001
98%
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.
200
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2020-21
LAND
STRUCTURE
TOTAL
ASSESSOR'S
ASSESSED
ASSESSED
ASSESSED
TAXABLE
PARCEL NUMBER
PROPERTY OWNER
VALUES ($)
VALUES ($)
VALUES ($)
ACREAGE
2861-058-071
Valencia Town Center Venture LP
$ 1,338,282
$ 203,924
$ 1,542,206
0.84
2861-058-072
Valencia Town Center Venture LP
3,709,509
19,284,980
22,994,489
4.81
2861-058-073
Valencia Town Center Venture LP
29,314,994
3,612,425
32,927,419
15.68
2861-058-076
Valencia Town Center Venture LP
933,847
92,745
1,026,592
1.18
2861-058-077
Valencia Town Center Venture LP
5,042,380
431,298
5,473,678
6.70
2861-058-081 Valencia Town Center Venture LP 17,052,251 183,054,502 200,106,753 14.34
2861-058-084 Valencia Town Center Venture LP 3,517,784 10,196,493 13,714,277 2.05
2861-058-085 Valencia Town Center Venture LP 458,835 229,415 688,250 0.33
Totals: $ 61,367,882 $ 217,105,782 $ 278,473,664 45.94
201
�Ti r_1WIl`r_VA r 4
CLASS ($) MAX TAX RATE ($) CHARGE ($)
1 $
38,567
$ 32,554.35 $
28,604
$ 24,144
1
38,567
185,506.95
28,604
137,583
1
38,567
604,806.65
28,604
448,562
1
38,567
45,663.25
28,604
33,867
1
38,567
258,398.45
28,604
191,644
38,566.93 &
1&2
259,780.85
553,121.59
28,607
410,229
1
38,567
79,062.21
28,604
58,637
1
38,567
12,649.95
28,604
9,382
$ 1,314,050
202
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
GOVERNMENTAL ACTIVITIES SUCCESSOR AGENCY
FISCAL CERTIFICATES PRIVATE CAPITAL GOVERNMENTAL TAX ALLOCATION
YEAR OF PARTICIPATION (1) (3) LOANS BONDS (2) PLACEMENT LEASE ,:r LEASES ACTIVITIES TOTAL BONDS
2011-12
11,610,000
15,490,000
1,040,000
12,525,000
242,417
40,907,417
2012-13
10,480,549
15,379,349
810,000
12,316,280
201,880
39,188,058
2013-14
9,323,138
15,291,374
580,000
12,002,622
154,705
37,351,839
2014-15
8,128,138
15,175,988
300,000
11,673,964
217,615
35,495,705
2015-16
-
-
200,000
26,012,352
6,328,411
138,877
32,679,640
2016-17
100,000
25,262,456
4,984,543
60,444
30,407,443
-
2017-18
-
40,380,831
3,595,740
32,200
44,008,771
34,794,208
2018-19
65,333,412
2,177,480
2,538
67,513,430
33,960,547
2019-20
65,085,696
730,371
497,583
66,313,650
33,106,887
2020-21
77,875,819
-
542,094
78,417,913
32,223,226
NOTES:
(1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of
Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond
proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita
Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance
the design, acquisition, improvement or construction of land, the City Hall Building and certain road
improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease
payments to be made by the City to the Authority equal to the principal and interest due on the
revenue bonds. At this point in time, the Agency is not active.
-The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation
Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and
the liability for those certificates was removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to
advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were
considered defeased and the liability for those certificates was removed from the long-term liability.
-On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding
2005 Series certificates. As a result, the 2005 Series were considered defeased and the liability for those certificates was removed from
the long-term liability.
-In November 2001, the Santa Clarita Public Financing Authority issued $3,200,000 in Certificates of
Participation for the acquisition of parkland. In 2006 the COP Series 2001 were considered defeased and the liability for those certificates was removed from the general long-
term debt.
(2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue
Bonds (Golden Valley Road), Series 2007 for the acquisition of right-of-way.
- On June 22, 2016, the Santa Clarita Public Financing Authority issued $10,320,000 in Series 2016A Lease Revenue Bonds (Golden Valley Road) to
advance refund $11,260,000 of oustanding 2007 Series bonds. As a result, the 2007 Series were considered defeased and the liability
for those bonds was removed from the general long-term debt.
- On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD)
to advance refund $15,070,000 of outstanding 2007 Series certificates.
On June 1, 2018, the Santa Clarita Public Financing Authority issued $15,300,000 in Lease Revenue Bonds for the acquisition and
retrofit of streetlights located within the City from Southern California Edison.
On June 27, 2019, the Santa Clarita Public Financing Authority issued $25,850,000 in Lease Revenue bond proceeds for the construction of
a new Sheriff Station facility.
- On October 22, 2020, the Santa Clarita Public Financing Authority issued $10,645,000 in Series 2020A Lease Revenue Bonds and $3,625,000 in
Series 202OA-T Federally Taxable Lease Revenue Bonds to provide funds in the acquisition of a recreational facility.
- Deferred amount for issuance premium, net of discount is included above.
(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.
-Deferred amount for issuance premium, net of discount is included above.
(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
203
PERCENTAGE
BUSINESS -TYPE ACTIVITIES
OF
OUTSTANDING
TOTAL
TAXABLE
DEBT
DEBT TO
GRAND
LEASE PRIMARY
ASSESSED
PER
PERSONAL
TOTAL
PAYABLE TOTAL GOVERNMENT
VALUE
CAPITA
INCOME
40,907,417
- - 40,907,417
0.19%
231
N/A
39,188,058
39,188,058
0.19%
191
N/A
37,351,839
37,351,839
0.15 %
179
N/A
35,495,705
35,495,705
0.14 %
166
N/A
32,679,640
32,679,640
0.12 %
149
N/A
30,407,443
30,407,443
0.11 %
141
N/A
78,802,979
44,008,771
0.14 %
203
N/A
101,473,977
67,513,430
0.21 %
310
N/A
99,420,537
66,313,650
0.19%
299
N/A
110,641,139
78,417,913
0.21 %
354
N/A
400
350
300
250
200
150
100
50
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Flsml Year
204
City of Santa Clarita
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
PERCENTAGE
OUTSTANDING GENERAL BONDED DEBT
OF
TAXABLE
DEBT
FISCAL
REVENUE
CERTIFICATES OF
ASSESSED
PER
YEAR
POPULATION ;
BONDS
PARTICIPATION
TOTAL
VALUE
CAPITA
2011-12
177,445
12,525,000
27,100,000
39,625,000
0.19%
223
2012-13
204,951
12,316,280
25,859,898
38,176,178
0.18%
186
2013-14
209,130
12,002,622
24,614,512
36,617,134
0.15%
175
2014-15
213,231
11,673,964
23,304,126
34,978,090
0.13%
164
2015-16
219,611
26,012,352
-
26,012,352
0.10%
118
2016-17
216,350
25,262,456
25,262,456
0.09%
117
2017-18
216,589
40,380,831
40,380,831
0.13%
186
2018-19
218,103
65,333,412
65,333,412
0.20%
300
2019-20
221,932
65,085,696
65,085,696
0.19%
293
2020-21
221,572
77,875,819
77,875,819
0.21%
351
400
350
300
250
200
150
100
50
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Fiscal Year
Source: (1) State of California, Finance Department
205
City of Santa Clarita
Direct and Overlapping Tax and Assessment Debt
June 30,2021
2020-21 Assessed Valuation: $37,222,674,431
(Net of Redevelopment Agency Incremental Value of $507,261,216)
2020-21 Population:
221,572
Percent
City's Share
Total Debt
Applicable
of Debt
06/30/2021
To City
06/30/2021
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Santa Clarita Community College District
$ 329,210,313
76.55 %
$
252,020,371
William S. Hart Union High School District
337,283,655
76.54%
$
258,167,028
William S. Hart Union High School District Community Facilities District No. 90-1
160,000
100%
$
160,000
William S. Hart Union High School District Community Facilities District No. 2005-1
13,990,000
100%
$
13,990,000
William S. Hart Union High School District Community Facilities District No. 2015-1
24,830,000
100%
$
24,830,000
Los Angeles Community College and Unified School Districts
15,273,805,000
0.000 %
$
1,527
Castaic Union School District
18,765,000
27.92 %
$
5,238,250
Newhall School District
4,850,000
61.47%
$
2,981,489
Newhall School District School Facilities Improvement District No. 2011-1
57,265,000
62.28 %
$
35,662,351
Saugus Union School District
8,431,729
93.92 %
$
7,919,249
Saugus Union School District School Facilities Improvement District No. 2014-1
132,505,000
94.13 %
$
124,720,331
Saugus Union School District Community Facilities District No. 2005-1
14,385,000
100%
$
14,385,000
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 1
26,205,000
100%
$
26,205,000
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 2
20,060,000
100%
$
20,060,000
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 3
19,540,000
100%
$
19,540,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 1
11,500,000
100%
$
11,500,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 2
6,605,000
100%
$
6,605,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 3
14,075,000
100%
$
14,075,000
Saugus Union School District Community Facilities District No. 2019-1
9,275,000
100%
$
9,275,000
Saugus -Hart School District Community Facilities District No. 2000-1
7,695,000
100%
$
7,695,000
Saugus-Castaic School District Facilities Financing Authority
$
-
Community Facilities District No. 2006-1C
15,665,000
100%
$
15,665,000
Sulphur Springs Union School District
57,962,379
94 %
$
54,431,890
Sulphur Springs Union School District No 2002-1
22,270,000
100%
$
22,270,000
Sulphur Springs Union School District No 2006-1
22,775,879
100%
$
22,775,879
Sulphur Springs Union School District No 2014-1
7,545,000
100%
$
7,545,000
City of Santa Clarita Open Space and Parkland Assessment District
12,430,000
100%
$
12,430,000
City of Santa Clarita Landscaping and Lighting Streetlighting Zones A and B
13,975,000
100%
$
13,975,000
City of Santa Clarita Community Facilities District No. 2002-1
12,835,000
100%
$
12,835,000
City of Santa Clarita Community Facilities District No. 2016-1
17,230,000
100%
$
17,230,000
City of Santa Clarita 1915 Act Bonds
470,000
100%
$
470,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
$1,034,658,366
Los Angeles County General Fund Obligations
2,618,507,256
2.18 %
$
57,031,088
Los Angeles County Superintendent of Schools Certificates of Participation
4,565,373
2.18 %
$
99,434
Los Angeles County Sanitation District No. 32 Authority
2,483,311
78.44 %
$
1,947,884
Santa Clarita Community College District Certificates of Participation
7,330,000
76.55 %
$
5,611,335
William S. Hart Union High School District General Fund Obligations
42,370,725
76.54%
$
32,431,824
Castaic Union School District Certificates of Participation
3,045,000
27.915 %
$
850,012
Saugus Union School District General Fund Obligations
10,025,000
93.922 %
$
9,415,681
Sulphur Springs Union School District Certificates of Participation
28,880,000
93.91 %
$
27,120,919
Los Angeles Unified School District Certificates of Participation
130,970,000
0.00001 %
$
13
City of Santa Clarita Obligations
51,526,162
100.00%
$
51,526,162
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
$
186,034,352
Total Net Direct and Overlapping General Fund Debt
$
186,034,352
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
31,510,000
100.000 %
31,510,000
Total Direct Debt
$
63,956,162
Gross Total Overlapping Debt
1,188,246,555
Net Total Overlapping Debt
$1,188,246,555
GROSS COMBINED TOTAL DEBT
$1,252,202,717
NET COMBINED TOTAL DEBT
$1,252,202,717
(2)
(3)
(1) Percentage of overlapping debt applicable to the city is estimated using taxable assed property value. Applicable percentages were estimated by
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 value.
(2) City of Santa Clarita Obligations includes $382,125 for the Kyocera Copier Lease, $159,969 for the Zamboni Lease, $8,365,000 for the
2016A series Golden Valley Road bond, $25,850,000 for the 2019 Series Sheriff Station Bond, $10,645,000
for the Lease Revenue Bonds & Recreational Facility, and $2,984,068 for deferred amount for issuance premium, net of discount.
Excludes Revenue and Taxable Revenue Bonds - Series 2018A and Series 2018B , Streetlights Acquisition and Retrofit Program,
as they are not backed by the City of Santa Clarita's General Fund.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations.
Ratios to 2020-2021 Assessed Valuation:
Direct Debt($12,430,000)...........................................................................0.04%
Total Overlapping Tax and Assessment Debt...................................................2.78
Total Direct Debt($47,140,871)...................................................................0.17%
Combined Total Debt...................................................................................3.36
Ratios to Redevelopment Successor Aaencv Incremental Valuation ($507.261.216):
Total Overlapping Tax Increment Debt..............................................................6.21
Source: Avenue Insights & Analytics
California Municipal Statistics, Inc.
206
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
FISCAL YEAR
20-21
19-20
18-19
17-18
16-17
15-16
Assessed valuation
$ 36,983,412,434
$ 35,174,818,421
$32,480,968,597
$ 30,727,345,419
$ 28,685,821,032
$ 27,330,863,338
Conversion percentage
25%
25%
25%
25%
25%
25%
Adjusted assessed valuation
9,245,853,109
8,793,704,605
8,120,242,149
7,681,836,355
7,171,455,258
6,832,715,835
Debt limit percentage
15%
15%
15%
15%
15%
15%
Debt limit
1,386,877,966
1,319,055,691
1,218,036,322
1,152,275,453
1,075,718,289
1,024,907,375
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
$ 1,386,877,966
$ 1,319,055,691
$ 1,218,036,322
$ 1,152,275,453
$ 1,075,718,289
$ 1,024,907,375
Total debt applicable to the limit
as a percentage of debt limit
0%
0%
0%
0%
0%
0%
Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation
perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local
governments located within the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
207
FISCAL YEAR
14-15
13-14
12-13
11-12
$26,111,942,635
25%
$24,269,472,731
25%
$20,985,441,963
25%
$21,168,938,632
25%
6,527,985,659
15%
6,067,368,183
15%
5,246,360,491
15%
5,292,234,658
15%
979,197,849
910,105,227
786,954,074
793,835,199
$ 979,197,849
$ 910,105,227
$ 786,954,074
$ 793,835,199
0%
0%
0%
0%
LEGAL DEBT MARGIN
Last Ten Fiscal Years
1,400
1,200
1,000
tl1 800
C
O
600
C
400
200
0
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21
Fiscal Year
208
City of Santa Clarita
Pledged Revenue Coverage
Last Ten Fiscal Years
TRANSIT
LESS
NET
Fiscal
TRANSIT
OPERATING
AVAILABLE DEBT SERVICE
Year
REVENUES (1)
EXPENSES (2)
REVENUES Principal Interest COVERAGE
2011-12
26,133, 433
25,175, 688
957,745
2012-13
29,420,486
25,901,822
3,518,664
2013-14
33,298,907
27,044,874
6,254,034
2014-15
24,008,186
28,292,380
(4,284,194)
2015-16
26,853,481
28,327,301
(1,473,820)
2016-17
28,652,461
30,231,012
(1,578,551)
2017-18
29,124,857
30,654,674
(1,529,817)
2018-19
38,089,054
32,224,652
5,864,402
2019-20
25,891,432
31,223,995
(5,332,563)
2020-21
44,346,540
28,270,373
16,076,167
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
209
City of Santa Clarita
Demographic and Economic Statistics
Last Ten Calendar Years
AVERAGE
AVERAGE
PER
CITY OF
ANNUAL
LOS ANGELES
ANNUAL
CAPITA
TOTAL
SANTA CLARITA
PERCENTAGE
COUNTY
PERCENTAGE
PERSONAL
PERSONAL
UNEMPLOYMENT
YEAR
POPULATION (1)
INCREASE
POPULATION (1)
INCREASE
INCOME (2)
INCOME (2)
RATE (3)
2012
177,445
0.27%
9,884,632
0.67%
46,337
604,831,837
6.90%
2013
204,951
15.50%
9,958,091
0.74%
48,425
635,891,798
6.60%
2014
209,130
2.04%
10,041,797
0.84%
50,751
673,073,539
4.70%
2015
213,231
1.96%
10,136,559
0.94%
54,526
727,377,241
6.40%
2016
219,611
2.99%
10,241,335
1.03%
57,160
760,828,529
4.70%
2017
216,350
-1.48%
10,241,278
0.00%
60,087
802,394,100
4.40%
2018
216,589
0.11%
10,283,729
0.41%
63,913
849,493,416
5.10%
2019
218,103
0.70%
10,253,716
-0.29%
66,684
881,215,471
4.80%
2020
221,932
1.76%
10,172,951
-0.79%
N/A
N/A
13.60%
2021
221,572
-0.16%
10,044,458
-1.26%
N/A
N/A
7.30%
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% 1.76%
1.00% 0.27% 0.11% 0.70% 0.16%
-1.00% 2012 2013 2014 2015 2016 2 1 2018 2019 2020 2021
YEAR
Sources: (1) State of California, Finance Department, as of 1/1/2021: E-1
(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), for the month of October 2021
Note: Reduction in 2017 population numbers due to change in the county controls. The primary factor was
a lowering of the estimated school enrollment.
210
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
2021*
2012
PERCENT
PERCENT
NUMBER
of
NUMBER
of
of
TOTAL
of
TOTAL
EMPLOYER
EMPLOYEES EMPLOYMENT
EMPLOYER
EMPLOYEES EMPLOYMENT
Henry Mayo Newhall
Six Flags Magic
Memorial Hospital
1,917
7.63%
Mountain
3,800
16.28%
Six Flags Magic Mountain
1,900
7.56%
Princess Cruises
1,625
6.96%
Henry Mayo Newhall
Princess Cruises
1,308
5.20%
Memorial Hospital
1,400
6.00%
Boston Scientific
875
3.48%
Quest Diagnostics
850
3.64%
The Master's College
755
3.00%
The Master's College
812
3.48%
Woodward HRT
721
2.87%
Woodward HRT
790
3.38%
Quest Dianostics
608
2.42%
Walmart
624
2.67%
Scorpion Internet
Marketing & Design
601
2.39%
Parmavite
550
2.36%
Cal Arts
600
2.39%
Aerospace Dynamics
510
2.19%
Amazon
580
2.31%
Cal Arts
500
2.14%
Largest firms
9,865
31.62%
Largest firms
11,461
49.10%
All others
15,272
60.76%
All others
11,879
50.90%
Grand total
25,137
92.37%
Grand total
23,340
100.00%
* As of March 2021
NOTE: (1) Non -governmental employers
Source: 2021 Economic Outlook Santa Clarita Valley Economic Dev Corp & College of the Canyons
211
City of Santa Clarita
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
Function
General government
Public safety (1)
Public works
Community development
Recreation and Comm Svcs
Neighborhood Services (2)
Transit
Totals
500.00
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
FISCAL YEAR
20-21 19-20 18-19 17-18 16-17 15-16 14-15 13-14 12-13 11-12
85.00
84.00
81.00
76.00
76.00
91.00
87.60
87.60
89.60
84.35
141.50
141.50
139.50
126.50
128.50
131.50
125.00
122.00
129.00
126.00
45.00
45.00
44.00
43.00
44.00
37.00
41.00
41.00
32.00
30.50
67.25
68.25
68.25
63.90
63.90
112.15
111.15
109.15
108.15
105.90
103.60
102.60
99.60
79.00
74.00
-
-
-
-
-
10.00
10.00
10.00
12.00
12.00
12.00
11.00
11.00
11.00
13.00
452.35 451.35 442.35 400.40 398.40 383.65 375.75 370.75 369.75 359.75
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21
Fiscal Year
(1) Police and Fire services are provided by the County
(2) The Neighborhood Services department was added for FY 2016-17
Source: City of Santa Clarita, Adopted Budget -Funded Regular Fulltime Equivalent Positions
212
City of Santa Clarita
Operating Indicators by Function
Last Ten Fiscal Years
FISCAL YEAR
Function
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
11-12
Police:
Parking citations issued"
11,359
13,992
24,214
15,505
13,133
9,035
4,765
4,786
5,726
5,521
Parking revenue collected $
417,978 $
516,477 $
364,954
$ 498,749
$ 470,843
$ 379,384
$ 320,682
$ 323,040
$ 341,607
$ 335,663
Public works:
Street resurfacing (miles)
28.0
38.7
26.0
38.9
45.0
15.5
80.0
20.9
18.0
24.0
Parks and Recreation:
Number of recreation classes
1,593
2,197
2,773
2,903
2,992
2,918
2,189
2,557
2,548
2,106
Number of facility rentals (times)
10,016
11,778
12,787
12,013
19,924
13,390
19,018
14,604
13,000
11,042
Transit:
Number of customers served 12i
1,673,828
2,131,694
2,680,202
2,775,327
2,864,351
3,167,021
3,422,015
3,540,969
3,661,302
3,612,060
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
213
City of Santa Clarita
Capital Assets Statistics by Function
Last Ten Fiscal Years
FISCAL YEAR
Function
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
11-12
Public works:
Streets (miles)
573
570
540
540
537
516
497
496
496
496
Street lights(')
18,622
18,662
18,662
18,662
17,843
17,843
17,843
17,843
17,843
15,081
Traffic signals (City Jurisdiction)
198
195
187
187
186
180
180
177
177
171
Traffic signals (Joint Jurisdiction)
4
4
5
5
5
5
5
5
5
6
Parks and recreation:
Number of parks
34
33
32
32
32
32
32
29
29
24
Community centers
2
2
2
2
2
2
2
2
1
1
Transit:
Stations
4
4
4
4
4
4
4
4
4
4
(1) The City of Santa Clarita assumed responsibility for the Streetlight Maintenance District from Los Angeles County in 1998. Subsequently, in 2019 the
City purchased the majority of streetlights from Southern California Edison. At this time the city owns and is responsible for maintaining an inventory
of 17,570 streetlights, inclusive of 989 Highway Safety Lights which are attached to traffic signals. All remaining 103 streetlights are owned and
maintained by Southern California Edison.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
214
Financial Report
June 30, 2021
City of Santa Cla rita, California
Transit Enterprise Fund
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City of Santa Clarita, California - Transit Enterprise Fund
Table of Contents
June 30, 2021
IndependentAuditor's Report............................................................................................................................. 1
Financial Statements
Statementof Net Position...............................................................................................................................
4
Statement of Revenues, Expenses and Changes in Fund Net Position..............................................................
5
Statementof Cash Flows.................................................................................................................................
6
Notes to Financial Statements.........................................................................................................................
7
Required Supplementary Information
Schedule of the Transit Fund's Proportionate Share of the Net Pension Liability.............................................23
Schedule of the Transit Fund's Pension Contributions.....................................................................................24
Schedule of the Transit Fund's Proportionate Share of the Net OPEB Liability.................................................25
Schedule of the Transit Fund's OPEB Contributions.........................................................................................26
Independent Auditor's 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 (City), as of and for the year ended June 30, 2021,
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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the 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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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, 2021, 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.
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,
2021, the changes in its financial position, or its cash flows for the year then ended, in accordance with
accounting principles generally accepted in the United States of America. Our opinion is not modified
with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of
proportionate share of the net pension liability, 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 23,
2021, 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 23, 2021
3
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Statement of Net Position
June 30, 2021
Assets
Current assets
Pooled cash and investments $ 3,912,296
Accounts receivable 1,301
Interest receivable 7,389
Prepaids 18,235
Due from other governments 6,585,829
Total current assets 10,525,050
Noncurrent assets
Nondepreciable assets 25,416,520
Depreciable assets, net 62,606,990
Net OPEB asset 301,813
Total noncurrent assets 88,325,323
Total assets 98,850,373
Deferred Outflows of Resources
Deferred outflows related to OPEB 191,495
Deferred outflows related to pensions 614,391
Total deferred outflows of resources 805,886
Liabilities
Current liabilities
Accounts payable 2,601,398
Compensated absences payable 36,257
Total current liabilities 2,637,655
Noncurrent liabilities
Compensated absences payable 105,412
Net pension liability 1,220,809
Total noncurrent liabilities 1,326,221
Total liabilities 3,963,876
Deferred Inflows or Resources
Deferred inflows related to OPEB 754,765
Deferred inflows related to pensions 18,458
Total deferred inflows of resources 773,223
Net Position
Net investment in capital assets 88,023,510
Unrestricted 6,895,650
Total net position $ 94,919,160
See Notes to Financial Statements 4
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Statement of Revenues, Expenses and Changes in Fund Net Position
For the Year Ended June 30, 2021
Operating Revenues
Metrolink and EZ pass revenues
$ 32,471
Fixed -route passenger fares
299,660
Dial -A -Ride passenger fares
48,073
County of Los Angeles operating assistance
1,915,013
Specialized transit services
1,582,312
Miscellaneous revenues
1,921,835
Total operating revenues
5,799,364
Operating Expenses
Salaries and benefits
1,132,468
Administrative services
1,557,839
Contract transportation services
16,579,352
FTA funded non -capitalized projects
438,129
Insurance
142,615
Supplies, utilities and other
2,410,168
Depreciation
5,662,334
Total operating expenses
27,922,905
Operating loss
(22,123,541)
Nonoperating Revenues
Proposition A Discretionary
4,717,718
Proposition A Specialized Transportation
1,411,701
Proposition C Expansion
202,611
Proposition C BSIP
52,591
Proposition C Transit Mitigation
23,560
Proposition C Security Allocation
167,642
Measure R Bus Operations
1,914,414
Measure M Bus Operations
1,887,510
SB1 State Transportation Assistance
622,335
Intergovernmental revenues
176,704
CARES Act
18,263,058
Transit mitigation fees
5,000
Investment income
41,855
Gain on disposal of capital assets
23,950
Total nonoperating revenues
29,510,649
Income before contributions and transfers 7.387.108
Capital Contributions
Federal Transit Administration capital grants
6,390,902
Proposition C MOSIP
2,075,576
SB1 State of Good Repair
570,049
Total capital contributions
9,036,527
Transfers to the City of Santa Clarita
(347,468)
Change in Net Position
16,076,167
Net Position
Beginning of year
78,842,993
End of year
$ 94,919,160
See Notes to Financial Statements 5
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Statement of Cash Flows
For the Year Ended June 30, 2021
Operating Activities
Cash received from customers and users $ 3,877,538
Cash payments to suppliers of goods and services (22,320,276)
Cash payments to employees (2,746,404)
Cash received from other sources 1,921,835
Net Cash Used In Operating Activities (19,267,307)
Noncapital Financing Activities
Cash transfers to the City of Santa Clarita (4,269,242)
Federal and state funding received 27,668,604
Net Cash Provided By Noncapital Financing Activities 23,399,362
Capital and Related Financing Activities
Capital contributions 9,036,527
Acquisition of capital assets (9,314,802)
Proceeds from sale of capital assets 23,950
Net Used In Capital and Related Financing Activities (254,325)
Investing Activities
Interest received 34,466
Net Cash Provided By Investing Activities 34,466
Net Decrease In Cash and Cash Equivalents 3,912,196
Pooled Cash and Cash Equivalents
Beginning of year 100
End of year
Reconciliation of operating loss to net cash used in operating activities
Operating loss
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation expense
Changes in Pension and OPEB
Pension Expense
Changes in operating assets and liabilities:
Decrease in accounts receivable
Decrease in prepaids
Decrease in accounts payable
Increase in compensated absences
Total adjustments
Net Cash Used in Operating Activities
$ 3,912,296
$ (22,123,541)
5,662,334
(78,889)
9
12,606
(2,762,618)
22,792
2,856,234
$ (19,267,307)
See Notes to Financial Statements 6
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
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. 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.
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 fund 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 fund 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 operating and maintenance of the local public transit services.
The operating revenues consist of charges to customers for the service provided. Operating expenses include
the costs of providing these services, administrative expenses and depreciation expense. All revenues and
expenses not meeting these definitions, and which are not capital in nature are reported as non -operating
revenues and expenses.
The 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.
7
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Pooled cash and investments: The Transit Fund's cash balance was pooled with various other City funds for
deposit and investment purposes. The City's treasury is responsible for the cash management of the Transit
Fund's cash balance. Cash on hand, demand deposits, and short-term investments with original maturity of
three months or less from the date of acquisition, and the Transit Fund's participation in the City investment
pool are considered to be cash and cash equivalents. Each City fund owns a share of pooled cash and
investments and interest income was apportioned based on its average month -end cash balances in proportion
to the total of the pooled cash and investments.
Prepaids: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in the financial statements.
Administrative services: Service costs include contractual, professional, and legal services.
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, CARES Act, and State of Good Repair.
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 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 (CaIPERS) plan and additions to/deductions from the plan's
fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this
purpose, benefit payments are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
M
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Other Post -Employment Benefits (OPEB): For purposes of measuring the net OPEB asset, deferred outflows of
resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary
net position of the City's plan (CPEB 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.
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, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Net position: Net position represents the difference between assets and deferred outflows, and liabilities and
deferred inflows, and is classified into two 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.
• 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, 2021 was $141,669 of which $36,257 was
considered due within one year, and $105,412 was considered due in more than one year.
Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management
to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the
financial statements and accompanying notes. Actual results could differ from these estimates.
Effect of New Governmental Accounting Standards Board (GASB) Pronouncements:
Future GASB Pronouncements:
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; enhancing the comparability of financial statements between governments; and also
enhancing the relevance, reliability (representational faithfulness), and consistency of information about the
leasing activities of governments. This Statement is effective for reporting periods beginning after June 15, 2021.
The City has not determined the effect of this Statement.
0
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
GASB Statement No. 91— In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and
eliminate diversity in practice. The Statement is effective for reporting periods beginning after December 15,
2021. The City has not determined the effect of this Statement.
GASB Statement No. 92 — In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of
this Statement are to enhance comparability in accounting and financial reporting to improve the consistency of
authoritative literature by addressing practices issues that have been identified during implementation and
application of certain GASB Statements. The Statement is effective for reporting periods beginning after June 15,
2021. The City has not determined the effect of this Statement.
GASB Statement No. 93— In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered
Rates. The objective of this Statement is to address the accounting and financial reporting implications that
result from the replacement of an IBOR. The Statement is effective for reporting periods beginning after June
15, 2021. The City has not determined the effect of this Statement.
GASB Statement No. 94— In March 2020, the GASB issued Statement No. 94, Public -Private and Public -Public
Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial
reporting by addressing issues related to public -private and public -public partnership arrangements (PPPs). The
Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the
effect of this Statement.
GASB Statement No. 96— In May 2020, the GASB issued Statement No. 96, Subscription -based Information
Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and
financial reporting for subscription -based information technology arrangements (SBITAs) for government end
users (governments). The Statement is effective for reporting periods beginning after June 15, 2022. The City has
not determined the effect of this Statement.
GASB Statement No. 97— In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans —An
Amendment of GASB Statement No.14 and No.84 and A Supersession of GASB Statement No.32. The objective of
this Statement is (1) increase consistency and comparability related to the reporting of fiduciary component
units in circumstances in which a potential component unit does not have a governing board and the primary
government performs the duties that a governing board typically would perform; (2) mitigate costs associated
with the reporting of certain defined contribution pension plans, defined contribution other postemployment
benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee
benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the
relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code
(IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan
and for benefits provided through those plans. The Statement is effective for reporting periods beginning after
June 15, 2021. Certain provisions were implemented during the fiscal year with an immaterial effect on the
Transit fund.
10
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Note 2 - Due from Other Governments
Due from other governments consists of the following at June 30, 2021:
Agency
Los Angeles County $ 4,399,579
Federal Government 1,399,948
Federal Transit Administration 643,144
Other Agencies 143,158
$ 6,585,829
Due from other governments relate to various program support revenues received from other governments in
support of transit operations and programs.
Note 3 - Capital Assets
Changes in capital assets of the Fund at June 30, 2021, consisted of the following:
Non -depreciable assets
Land
Construction in progress
Total non -depreciable assets
Depreciable assets
Site improvements
Building and improvements
Equipment
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
Total accumulated depreciation
Total depreciable assets, net
Total capital assets, net
July 1, 2020
June 30, 2021
Balance
Additions
Deletions
Balance
$ 15,087,880
$ -
$ -
$ 15,087,880
5,570,040
4,930,902
(172,302)
10,328,640
20,657,920
4,930,902
(172,302)
25,416,520
12,941,276
-
-
12,941,276
41,483,799
172,302
-
41,656,101
63,670,065
4,383,899
(2,437,593)
65,616,372
118,095,140
4,556,201
(2,437,593)
120,213,749
(4,968,254)
(568,221)
-
(5,536,475)
(14,575,773)
(890,239)
-
(15,466,012)
(34,837,990)
(4,203,874)
2,437,593
(36,604,272)
(54,382,017)
(5,662,334)
2,437,593
(57,606,758)
63,713,123
(1,106,133)
-
62,606,990
$ 84,371,043
$ 3,824,770
$ (172,302)
$ 88,023,510
11
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Note 4 - Pension Plan
Plan Description
All qualified permanent, probationary, and some PTS 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. For financial reporting purposes, the Transit Fund reports a proportionate share
of the City's collective net pension liability, pension expense, and deferred inflows and outflows of resources.
Accordingly, the disclosures and required supplementary information have been reported for the Transit Fund
as a cost sharing participant. 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
The Plan's provisions and benefits in effect at June 30, 2021, are summarized as follows:
Formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of annual salary
Required employee contribution rates
Required employer contribution rates
Required Unfunded Accrued Liability (UAL) contribution
Applies to:
Tier 1
2.7% at 55
5 years of service
monthly for life
50-55
2.7%
8%
Tier 1
Employees hired before
April 9, 2011*
Miscellaneous
Tier 2
2% at 60
5 years of service
monthly for life
50-60
2.0%
7%
9.398%
$3,591,974
Tier 2
Employees hired
between April 9, 2011,
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).*
Tier 3
2% at 62
5 years of service
monthly for life
52-62
2.0%
6.25%
Tier 3
Employees hired January
1, 2013, or later *
* 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 and status when hired.
12
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
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 the 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,
2021 were $394,284.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, 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 $1,220,809.
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, 2020, 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, 2019, rolled forward to June 30, 2020, 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, 2019 and 2020 were as follows:
Proportion -June 30, 2019
Proportion -June 30, 2020
3.51435%
3.51435%
Change - Increase (Decrease) 0%
For the year ended June 30, 2021, the Transit Fund recognized pension expense of $371,725. At June 30, 2021,
the Transit Fund reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Net difference between projected and actual earnings on
pension plan investments
Changes of assumptions
Difference between expected and actual experience
Contributions subsequent to the measurement date
Total
Deferred Deferred
Outflows Inflows
of Resources of Resources
$ 66,210 $ -
9,990 17,169
143,907 1,289
394,284 -
$ 614,391 $ 18,458
13
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
The amount of $394,284 reported as deferred outflows of resource
Fiscal Year Ending
2022
2023
2024
2025
Total
Deferred
Outflows/(Inflows)
of Resources
$ 39,734
64,760
62,898
34,257
$ 201,649
Actuarial Assumptions
The total pension liabilities in the June 30, 2019, actuarial valuation for the City's Miscellaneous Plan was
determined using the following actuarial assumptions applied to all periods included in the measurement:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount rate
Inflation
Payroll growth
Projected salary increase
Investment Rate of Return
Mortality
(1) Depending on age, service and type of employment
(2) Derived using CAPERS Membership Data for all Funds
Miscellaneous
June 30, 2019
June 30, 2020
Entry -Age Normal Cost Method
7.15%
2.625%
2.875%
(1)
7.25% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation
(2)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019, valuation
were based on the results of an actuarial experience study for the period 1997 to 2011. Further details of the
Experience Study can be found on the CalPERS website.
14
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Discount Rate
The discount rate used to measure the total pension liability was 7.15 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 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.
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.
Assumed Asset
Real Return
Real Return
Asset Class (1)
Allocation
Years 1-10(2)
Years 11+(3)
Global Equity
50.0%
4.80%
5.98%
Fixed Income
28.0%
1.00%
2.62%
Inflation Assets
0.0%
0.77%
1.81%
Private Equity
8.0%
6.30%
7.23%
Real Estate
13.0%
3.75%
4.93%
Liquidity
1.0%
0.00%
-0.92%
100%
(1) In the System's ACFR, fixed income is included in Global Debt Securities; Liquidity is included in Short-term
Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(2) An expected inflation rate of 2.0% used for this period.
(3) An expected inflation rate of 2.9% used for this period.
15
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Sensitivity of the Transit Fund's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the Transit Fund's proportionate share of the net pension liability for the Plan, calculated
using the discount rate for the Plan, as well as what the Transit Fund's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage
point higher than the current rate:
1% Decrease Current Discount 1% Increase
(6.15%) Rate (7.15%) (8.15%)
Transit Fund's proportionate share of
the net pension liability $ 2,429,642 $ 1,220,809 $ 233,456
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the City's ACFR, as well as the
separately issued CalPERS financial reports.
Note 5 - Other Post -Employment Benefits (OPEB)
Plan Description
The City has elected through resolution to provide healthcare benefits as a single 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 ACFR.
Benefits Provided
After age 65, the City contributes a flat monthly rate of $143 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 $1,017 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.
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:
16
Years of Service
0 to 5 years
5 to 9 years
10 to 14 years
15 years and greater
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
Vested Percentage
0%
50%
75%
100%
June 30, 2021
Employees hired after January 1, 2008, receive the PERS minimum and are not subject to a vesting schedule.
Funding Policy
The City conducted an actuarial valuation to determine the City's liability 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. Plan activity is reported within the City's ACFR as a fiduciary component unit.
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 and is not
determined based on a level of pay. As a result of reporting a net OPEB asset, the Cash Subsidy component of
the annual required contribution for fiscal year 2020-2021 was negative $297,000. An additional $961,682 in
benefits was paid directly by the Trust to recipient during the year.
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 require 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 recorded a credit of $7,296 related to the fiscal year 2020-21 implied subsidy
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, 2021, the
Transit Funds proportionate share of cash contributions were $8,016 in payments to the Plan and the estimated
implied subsidy was $7,296, resulting in total contributions of $15,312.
17
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
OPEB Assets, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
At June 30, 2021, the net OPEB asset reported by the Transit Fund for its proportionate share of the net OPEB
asset of the Plan, as allocated by the City, was ($301,813). The net OPEB asset was measured as of June 30,
2021, and the total OPEB liability used to calculate the net OPEB asset was determined by an actuarial valuation
as of June 30, 2020, rolled forward to June 30, 2021, using actuarial update procedures. The Transit Fund's
proportion of the net OPEB asset 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. The Transit Fund's proportion of the net
OPEB asset for the Plan as of June 30, 2020 and 2021 were as follows:
Proportion -June 30, 2020
Proportion -June 30, 2021
Change - Increase(Decrease)
2.40%
2.40%
0%
For the year ended June 30, 2021, the Transit Fund recognized OPEB expense of $40,967 and reported deferred
inflows and outflows of resources related to OPEB from the following sources:
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings on plan investments
Total
Deferred Deferred
Outflows Inflows
of Resources of Resources
$ - $ 234,229
191,495 378,083
$ 191,495
142,453
$ 754,765
Amounts reported as deferred inflows and outflows of resources are amortized in OPEB expense. The
amortization period differs depending on the source of the gain or loss. The amortization period is a 13-year
fixed period and all other amounts are amortized over the average expected remaining service lives of all
members that are provided with benefits. As of June 30, 2021 measurement date, the expected average
remaining service lifetime is 9.2 years. Deferred inflows and outflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ended June 30,
Amortization
2022
$ (90,055)
2023
(87,079)
2024
(86,629)
2025
(92,355)
2026
(50,206)
Thereafter
(156,946)
Total
$ (563,270)
18
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Actuarial Assumptions
The total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Assumptions
Actuarial Valuation Date June 30, 2020
Contribution Policy Pre -fund cash benefit Actuarially Determined Contribution
(ADC) with PARS Balance Fund.
Implied subsidy benefit on pay-as-you-go basis.
Discount Rate 6.25% at June 30, 2021
4.17% at June 30, 2020
Expected City contributions projected to be sufficient to pay all
benefits from trust.
Long-term Expected Rate of Return
6.25%
Municipal Bond Index
Bond Buyer 20-bond Index
2.16% at June 30, 2021
2.21%June 30, 2020
General Inflation
2.75% per annum
Mortality, Retirement, Disability, Termination
CAPERS 1997-2015 Experience Study
Mortality Improvement
Post -retirement mortality projected fully generational with
Scale MP-2019
Salary Increases
Aggregate -3% per annum
Merit - CAPERS 1997-2015 Experience Study
Medical Trend
Non -Medicare - 7.25% for 2021, decreasing to an ultimate rate
of 4.0% in 2076
Medicare - 6.3% for 2021, decreasing to an ultimate rate of
4.0% in 2076
PEMHCA Minimum Increases
4.25% per annum
Healthcare participation at
Hired < 1/1/08: 95%
Hired >_ 1/1/08: 60%
Cap Increases
No increase on $1,016.58 cap
Medical trend for EE+1 cap
Mortality rates were based on the 1997-2015 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.
19
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Changes of Assumptions
During the measurement period ending June 30, 2021, the City changed certain assumptions used to the
measure the net OPEB asset. Refer to the table above for details. The discount rate was updated based on
newer Bond Buyer 20-Bond Index and asset information; the overall discount rate was increased from 4.17% to
6.25% during the year. Excise tax was removed during the year. There was a decrease in participation at
retirement from 100%to 95%for those hired before January 1, 2008 and a decrease in waived retiree reelection
from 10% re-elect at 65 to 5% re-elect at 65. The mortality improvement scale was updated to Scale MP-2019
during the year.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%for the Plan. the Plan's fiduciary net
position is projected to be sufficient to make all projected future benefit payments of current and inactive
employees with no additional contributions necessary.
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:
Asset Class
Global Equity
Fixed Income
REITs
Cash
Target
Allocation Expected Real
PARS -Balance Rate of Return
58%
4.82%
35%
1.47%
2%
3.76%
5%
0.06%
Sensitivity of the Transit Fund's Proportionate Share of the Net OPEB Asset 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% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability (Asset) $ (157,675) $ (301,813) $ (419,273)
20
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Sensitivity of the Transit Fund's Proportionate Share of the Net OPEB Asset to Changes in the Healthcare Cost
Trend Rates
The following presents the Transit Fund's proportionate share of the net OPEB asset, as well as what the Transit
Fund's proportionate share of the net OPEB asset 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, 2021:
Net OPEB Liability (Asset)
Healthcare Trend Rate
1% Decrease Current Rate
(439,498) $ (301,813)
OPEB Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the City's ACFR.
Note 6 - Administrative and Personnel Costs
1% Increase
Certain general and administrative costs are allocated to the Transit Fund based upon an approved cost
allocation plan. Such allocated costs were $769,125 for the year ended June 30, 2021.
Note 7 - Coronavirus Aid, Relief, and Economic Security (CARES) Act
(129,109)
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law to
provide emergency assistance for workers, families, small businesses, and industries. The Federal Transit
Administration (FTA) released the CARES Act apportionments for public transit. These funds are administered by
the FTA through its grant funding program. During the year ended June 30, 2021, $18.3M CARES Act funds were
received to support transit operations.
Note 8 - Internal Revenues Services (IRS) Compressed Natural Gas (CNG) Rebate
During the year ended June 30, 2021, the IRS extended the alternative fuel credit retroactively for fuel use and
sales for FY 2018-19 through FY 2020-21. The alternative fuel credit is a non-refundable tax credit available for
entities that use or sell non -alcohol alternative fuels such as hydrogen, compressed natural gas, and propane.
During FY 2020-21 a total of $1.34M in CNG rebates were claimed and recorded as miscellaneous revenue.
Retroactive credits claimed were as follows:
Fiscal Year Ended
FY 2018-19
FY 2019-20
FY 2020-21
561,016
354,244
386,718
$ 1,301,978
21
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Note 9 — Transfers to the City of Santa Clarita
During the year ended June 30, 2021, the Transit fund transferred $347,468 to the City of Santa Clarita,
$150,000 was to support the senior center transit operations, $193,778 was to support the City's share of
pension costs, and $3,690 for the proportional share of Metrolink station maintenance.
22
Required Supplementary Information
June 30, 2021
City of Santa Cla rita, California
Transit Enterprise Fund
eidebailly.com
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Schedule of the Transit Fund's Proportionate Share of the Net Pension Liability
Last Ten Years*
For the Measurement Date Ended June 30, 2021
2020
2019
2018
2017
2016
2015
2014
Proportion of the collective net pension liability
3.51435%
3.51435%
3.51435%
3.51435%
3.51419%
3.51419%
3.51419%
Proportionate share of the collective net pension liability
$ 1,220,809 $
1,367,413
$ 1,468,640
$ 1,641,432
$ 1,388,588
$ 1,084,341 $
944,480
Covered payroll
$ 1,225,894 $
1,173,778
$ 1,053,068
$ 1,052,000
$ 981,713
$ 957,079 $
944,599
Proportionate share of the collective net pension liability as a
percentage of covered payroll
99.59%
116.50%
139.46%
156.03%
141.45%
113.30°%
99 99°%
Plan fiduciary net position as a percentage of the total pension
liability
84.69%
81.56%
78.57%
74.42%
75.27%
79.11%
80.58%
Note to Schedule:
* Fiscal year 2015 was the first year of implementation. The schedule presents information based on applicable measurement periods.
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.
23
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Schedule of the Transit Fund's Pension Contributions
Last Ten Years*
For the Year Ended June 30, 2021
2021
2020
2019
2018
2017
2016
2015
Actuarially determined contributions
$ 394,284
$ 222,244
$135,308
$ 339,564 $
157,588
$ 139,129 $
131,436
Contributions in relation to the actuarially determined contribution
(394,284)
(561,485)
(439,297)
(339,564)
(157,588)
(139,129)
(131,436)
Contribution deficiency (excess)
$
$ (339,241)
$ (303,989)
$ - $
$ $
Covered payroll
$ 1,193,797
$ 1,225,894
$1,173,778
$ 1,053,068 $
1,052,000
$ 981,713 $
957,079
Contributions as a percentage of covered payroll
33.03%
45.80%
37.43%
32.25%
14.98%
14.17%
13.73%
Note to Schedule:
* Fiscal year 2015 was the first year of implementation
24
Transit Enterprise Fund
(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, 2021
2021
2020
2019
2018*
Transit Fund's proportion of the net OPEB liability (asset) $
(301,813) $
400,077
$ 146,648
$ 247,416
Transit Fund's proportionate share of the net OPEB liability (asset)
2.40%
2.40%
2.40%
2.40%
Transit Fund's covered -employee payroll
855,299
919,082
813,498
735,216
Transit Fund's proportionate share of the net OPEB liability
as a percentage of its covered -employee payroll
-35.29%
43.53%
18.03%
33.65%
Plan fiduciary net position as a percentage of the total OPEB liability
131.67%
71.67%
87.12%
79.08%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation, therefore only 4 years are shown.
Changes of Assumptions - The discount rate was changed from 5.60% at the June 30, 2018 measurement to 5.17% at the June 30, 2019
measurement date. The discount rate was changed to 4.17% for the June 30, 2020 measurement date and the changed to 6.25% for the June
30, 2021 measurement date
25
Contractually determined contribution
Contributions in relation to the
contractually determined contributions
Contribution deficiency (excess)
Covered -employee payroll
Contributions as a percentage of
covered payroll
Transit Enterprise Fund
(an Enterprise Fund of the City of Santa Clarita, California)
Schedule of the Transit Fund's OPEB Contributions
For the Year Ended June 30, 2021
2021 2020 2019 2018*
$ 12,408 $ 26,688 $ 27,048 $ 42,120
15,312 15,264 22,159 29,448
$ (2,904) $ 11,424 $ 4,889 $ 12,672
855,299 919,082 813,498 735,216
1.79% 1.66% 2.72% 4.01%
Notes to Schedule:
* Fiscal year 2018 was the first year of implementation, therefore only 4 years are shown
Methods and Assumptions for 2020-21 Actuarially Determined Contributions
Valuation Date
June 30, 2020
Actuarial Cost Method
Entry Age Normal, Level Percentage of Payroll
Amortization Method
Level percent of pay
Amortization Period
13-year fixed period for 2020/21
Asset Valuation Method
Investment gains and losses spread over 5-year rolling period
Discount Rate
6.50%
General Inflation
2.75%
Medical Trend
Non -Medicare - 7.25%for 2021, decreasing to an ultimte rate of 4.0% in 2076
Medicare - 6.3%for 2021, decreasing to an ultimate rate of 4.0% in 2076
Mortality
CalPERS 1997-2015 experience study
Mortality Improvement
Post -retirement mortality projected fully generational with Scale MP-2019
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.
26
Financial Report
June 30, 2021
City of Santa Cla rita, California
Air Quality Improvement
Special Revenue Fund
EideBailly.
eidebailly.com
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Table of Contents
June 30, 2021
IndependentAuditor's Report............................................................................................................................. 1
Financial Statements
BalanceSheet..................................................................................
Statement of Revenues, Expenditures and Changes in Fund Balance
Notes to Financial Statements.........................................................
Required Supplementary Information
4
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual ................................. 9
Note to Required Supplementary Information................................................................................................10
Independent Auditor's 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, 2021, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
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10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA 91730-3831 T 909.466.4410 F 909.466.4431 EOE
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, 2021, 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.
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, 2021, or the
changes in financial position for the year then ended, in accordance with accounting principles generally
accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of
revenues, expenditures, and changes in fund balance — budget and actual and related note as described
in the table of contents 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 23,
2021, on our consideration of the Fund's internal control over financial reporting and on our tests of the
City's 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 Fund'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 Fund's internal control over financial reporting and compliance, as it relates to the Fund of the City.
Rancho Cucamonga, California
December 23, 2021
3
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Balance Sheet
June 30, 2021
Assets
Pooled cash and investments $ 31,808
Interest receivable 11
Due from South Coast Air Quality Management District 192,665
Total assets $ 224,484
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ 46,106
Fund Balance
Restricted 178,378
Total liabilities and fund balance $ 224,484
See Notes to Financial Statements 4
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended June 30, 2021
Revenues
Assembly Bill 2766 revenues $ 289,795
Assembly Bill 2766 grant 118,979
Investment income (loss) (5,447)
Total revenues 403,327
Expenditures
Administrative 5,806
Air quality improvement program 828,412
Total expenditures
834,218
Net Change In Fund Balance
(430,891)
Fund Balance, Beginning of Year
609,269
Fund Balance, End of Year
$ 178,378
See Notes to Financial Statements 5
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
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.
M
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
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, 2021 is $31,808.
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 Annual Comprehensive
Financial Report.
7
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Note 3 - Due from South Coast Air Quality Management District
The SCAQMD collects revenues from annual vehicle registration fees and allocates a percentage of the revenues
collected to the City. As of June 30, 2021, the Fund's due from SCAQMD balance totaled $192,665.
Note 4 - 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.
N
Required Supplementary Information
June 30, 2021
City of Santa Cla rita, California
Air Quality Improvement
Special Revenue Fund
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual
For the Year Ended June 30, 2021
Variance with
Final Budget
Actual
Positive
Original Final
Amounts
(Negative)
Revenues
Assembly Bill 2766 revenues
$ 280,943 $ 280,943
$ 289,795
$ 8,852
Assembly Bill 2766 grant
- 122,000
118,979
(3,021)
Investment income (loss)
8,131 8,131
(5,447)
(13,578)
Total revenues 289,074 411,074 403,327 (7,747)
Expenditures
Administrative
8,231
8,231
5,806
2,425
Air Quality Improvement Program
41,300
1,012,112
828,412
183,700
Total expenditures
49,531
1,020,343
834,218
186,125
Excess (Deficiency) of Revenues
Over (Under) Expenditures
239,543
(609,269)
(430,891)
(193,872)
Net Change in Fund Balance
$ 239,543
$ (609,269)
(430,891)
$ (193,872)
Fund Balance at Beginning of Year
609,269
Fund Balance at End of Year
$ 178,378
See Note to Required Supplementary Information 9
Air Quality Improvement Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Note to Required Supplementary Information
June 30, 2021
Budgetary Information
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the
United States of America for all governmental funds, except that encumbrances are shown in the year incurred
for budgetary purposes.
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. The proposed budget is presented to the City Council for review.
The City Council holds public hearings, and a final budget must be 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. The
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 schedule does not present the legal level of budgetary control, which is at the category
level. Refer to the City's Annual Comprehensive Financial Report for further information.
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 restricted fund balance. Unexpended appropriations
lapse at year-end.
10
Financial Report
June 30, 2021
City of Santa Cla rita, California
Open Space Preservation District
Special Revenue Fund
EideBailly.
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Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Table of Contents
June 30, 2021
IndependentAuditor's Report............................................................................................................................. 1
Financial Statements
BalanceSheet..................................................................................
Statement of Revenues, Expenditures and Changes in Fund Balance
Notes to Financial Statements.........................................................
Required Supplementary Information
4
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .................................. 9
Note to Required Supplementary Information................................................................................................10
Independent Auditor's 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, 2021, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
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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, 2021, 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.
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, 2021, 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 as described
in the table of contents 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 23,
2021, 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 23, 2021
3
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Balance Sheet
June 30, 2021
Assets
Pooled cash and investments $ 6,551,135
Receivables
Interest 15,490
Taxes 45,567
Total assets $ 6,612,192
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ 34,164
Fund Balance
Restricted for Open Space Preservation 6,578,028
Total liabilities and fund balance $ 6,612,192
See Notes to Financial Statements 4
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended June 30, 2021
Revenues
Special assessments $ 2,881,269
Charges for services 72,933
Investment income 17,640
Total revenues 2,971,842
Expenditures
Current
Open Space Preservation 815,696
Capital outlay 378,981
Total expenditures 1,194,677
Excess of revenues over expenditures 1,777,165
Other Financing Sources (Uses)
Transfers to other funds of the City of Santa Clarita (791,563)
Net Change in Fund Balance 985,602
Fund Balance, Beginning of Year 5,592,426
Fund Balance, End of Year $ 6,578,028
See Notes to Financial Statements 5
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
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 Open Space
Preservation District (the District) pursuant to the provisions of the Landscape and Lighting Act of 1972, being
Part 2 of Division 15 of the California Street and Highway Code. The purpose of the District is to fund a portion of
the City's open space, park and parkland program consisting of the acquisition, preservation, improvement,
servicing, financing and maintenance of open -space land, parks and parkland, and appurtenant equipment and
facilities, including the payment of debt service, of benefit to the property within the District. Facilities include,
but are not limited to, open -space land, parks, parklands, the Santa Clarita River Watershed, trail systems and
wildlife corridors. These are financed by special assessments levied on parcels within the City boundaries. The
boundaries of the District are the same as the boundaries of the City. The City established the Open Space
Preservation District Special Revenue Fund (Fund) to account for the activities of the District. The City has title of
the constructed assets within the boundaries of the District. Any debt issued for activities of the District are
issued in the name of the City.
Basis of presentation: The Fund's statements are prepared in conformity with accounting principles generally
accepted in the United States of America (U.S. GAAP). The Fund is presented as a Special Revenue Fund of the
City. The Governmental Accounting Standards Board (GASB) is the acknowledged standard -setting body for
establishing accounting and financial reporting standards followed by governmental entities in the United
States. The financial statements were prepared from only the accounts of the Fund and, therefore, do not
present the financial position or results of operations of the City and changes in financial position thereof for the
year then ended in conformity with generally accepted accounting principles in the United States of America.
Fund financial statements: Governmental fund financial statements include a balance sheet and a statement of
revenues, expenditures, and changes in fund balance.
The Fund is accounted for on a spending or "current financial resources" measurement focus and the modified
accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance
sheet. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in the fund balance. The primary
revenue sources are special assessments and interest revenue. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available to
finance expenditures of the current period. Revenues are considered available if they are collected within 90
days of the end of the current fiscal period, except for special assessments, which are within 60 days.
Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Pooled cash and investments: The Fund's cash and investments balance was pooled with various other City
funds for deposit and investment purposes. The City's treasury is responsible for the cash management of the
Fund's cash balance, which pools available cash for investment purposes. The cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturities of three
months or less from the date of acquisition. Each City fund owns a share of pooled cash and investments, which
are separately maintained, and interest income was apportioned based on its average month -end cash balances
to the total of the pooled cash and investments.
M
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Special assessments: Special assessment taxes are attached as enforceable liens on real property on July 1, the
beginning of the fiscal year, and are due in two installments on November 1 and February 1; however, no
penalties or interest are assessed until December 10 and April 10, respectively. These taxes are determined
annually based on property values, subject to limits based on Proposition 13, as of January 1 of the levy year,
which is prior to the end of the previous fiscal year. The County of Los Angeles bills and collects these taxes for
the District and are remitted on a monthly basis.
Fund Balance: In the Fund's financial statements, fund balance is classified as follows:
Restricted: Restricted fund balances encompass the portion of net fund resources subject to externally
enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through
debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions
imposed by law through constitutional provisions or enabling legislation. Expenditures as they are incurred
are applied against restricted fund balance.
Use of estimates: The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions. These
estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ
from these estimates and assumptions.
Note 2 - Cash and Investments
The Fund's pooled cash and investments at June 30, 2021 was $6,551,135.
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment Risk
Disclosures, as they relate to the pooled cash and investments, are reported in the annual report of the City. The
pooled cash and investments are unrated, and average maturity is 30 days or less.
The Fund recognizes its position in the City investment pool at fair value based on information provided by the
City. Deposits and withdrawals to the pool are made on the basis of $1 and not fair value. Accordingly, the
measurement of fair value of the Fund's investment in the City Investment Pool is based on uncategorized
inputs not defined as Level 1, Level 2, or Level 3. Additional information regarding interest rate risk,
concentration of credit risk, custodial credit risk and fair value measurements of the City's pooled cash and
investments is presented in the City's Annual Comprehensive Financial Report.
7
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Notes to Financial Statements
June 30, 2021
Note 3 - Transfers to Other Funds of the City of Santa Clarita
The Fund made transfers to the City's Public Financing Authority's capital project fund of $766,406 for current
year debt service payments for the Lease Revenue Bond Series 2016B. As of June 30, 2021, $12,430,000 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. Additional information regarding the Lease Revenue Bond Series 2016B is presented in the City's
Annual Comprehensive Financial Report.
The Fund also made transfers totaling $25,157 to the City's General Fund for the Fund's share of pension
unfunded accrued liability obligation determined by the annual CalPERS actuarial report.
M
Required Supplementary Information
June 30, 2021
City of Santa Cla rita, California
Open Space Preservation District
Special Revenue Fund
eidebailly.com
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Year Ended June 30, 2021
Variance with
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenues
Special assessments
$ 2,848,291
$ 2,848,291
$ 2,881,269
$ 32,978
Charges for services
124,442
124,442
72,933
(51,509)
Investment income
103,776
103,776
17,640
(86,136)
Total revenues
3,076,509
3,076,509
2,971,842
(104,667)
Expenditures
Operating
Personnel
324,460
324,850
314,704
10,146
Operating
423,995
620,913
500,992
119,921
Capital outlay
-
1,438,400
304,459
1,133,941
Capital Improvement Projects
Operating
30,000
145,467
74,522
70,945
Total expenditures
778,455
2,529,629
1,194,677
1,334,952
Excess of Revenues Over Expenditures
2,298,054
546,880
1,777,165
1,230,285
Other Financing Uses
Transfer out (791,563) (791,563) (791,563) -
Net Change in Fund Balance $ 1,506,491 $ (244,683) 985,602 $ 1,230,285
Fund Balance at Beginning of Year 5,592,426
Fund Balance at End of Year $ 6,578,028
See Note to Required Supplementary Information 9
Open Space Preservation District Fund
(a Special Revenue Fund of the City of Santa Clarita, California)
Note to Required Supplementary Information
June 30, 2021
Budgetary Information
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the
United States of America for all governmental funds, except that encumbrances are shown in the year incurred
for budgetary purposes.
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. The proposed budget is presented to the City Council for review.
The City Council holds public hearings, and a final budget must be 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.
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 restricted fund balance. Unexpended appropriations
lapse at year-end.
10