HomeMy WebLinkAbout2023-01-24 - AGENDA REPORTS - FY 2021 2022 FIN RPTO
Agenda Item: 7
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: 1
DATE: January 24, 2023
SUBJECT: FISCAL YEAR 2021-22 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, 2022.
BACKGROUND
The City of Santa Clarita's (City) independent audit firm, The Pun Group, LLP, has completed
the City's annual audit for fiscal year ending June 30, 2022. The Pun Group, 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, The Pun Group, 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, 2022.
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 The Pun Group, LLP, to provide specific
information related to the audit scope and performance.
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hi addition, the following reports were prepared for the fiscal year ending June 30, 2022, by The
Pun Group, LLP:
Appropriations Limit Calculation
Single Audit Report
Transit Enterprise Fund of the City of Santa Clarita
City of Santa Clarita Air Quality Improvement Fund
Santa Clarita Open Space Preservation District
Copies of the reports were provided to the City Council under a separate memo.
ALTERNATIVE ACTION
No feasible alternative action has been identified by staff.
FISCAL IMPACT
None by this action.
ATTACHMENTS
Appropriations Limit Calculation 06-30-2022 (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 06-30-2022 (available in the City Clerk's Reading File)
Transit Enterprise Fund 06-30-2022 (available in the City Clerk's Reading File)
Air Quality Improvement Fund 06-30-2022 (available in the City Clerk's Reading File)
Open Space Preservation District 06-30-2022 (available in the City Clerk's Reading File)
Single Audit Report 06-30-2022 (available in the City Clerk's Reading File)
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Packet Pg. 60
City of Santa Clarita
Santa Clarita, California
Independent Accountants' Report on
Applying Agreed -Upon Procedures to
Appropriations Limit Schedule
For the Year Ended June 30, 2022
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
INDEPENDENT ACCOUNTANTS' REPORT ON
APPLYING AGREED -UPON PROCEDURES
To the Honorable Mayor, City Council and Citizens
of the City of Santa Clarita
Santa Clarita, California
We have performed the procedures enumerated below on the appropriation limit of the City of Santa Clarita,
California (the "City") for the year ended June 30, 2022. The City's management is responsible for the
Appropriations Limit Schedule.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended
purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was
agreed to by the City and the League of California Cities (as presented int eh publication entitled Agreed -upon
Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution).
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 and associated findings are as follows:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year
ended June 30, 2022, and verified that the limit and annual calculation factors were adopted by resolution
of the City Council. We also verified that the population and inflation options were selected by a recorded
vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total
adjustments, and agreed the resulting amount to the current year's limit.
Finding: No exceptions were noted as a result of our procedures.
3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to
corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the
appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
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 engagement, the objective of which would be
the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule.
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.
This report is intended solely for the information and use of the City Council and the management of the City and is
not intended to be and should not be used by anyone other than these specified parties.
'7X e L1f,
Santa Ana, California
December 21, 2022
City of Santa Clarita
Appropriations Limit Schedule
For the Year Ended June 30, 2022
Amount
Source
A. Appropriations Limit FY 2020-2021 $ 444,856,663 Prior year appropriations
limit adopted by the City
B. Calculation Factors:
1) Population increase % 1.0021 California Department of Finance
2) Inflation increase % 1.0573 California Department of Finance
3) Total adjustment % 1.0595 (B 1 x 132)
C. Annual Adjustment Increase 26,478,016 {(B3-1) x Al
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) - N/A
E. Total Adjustments 26,478,016 (C + D)
F. Appropriations LimitFY 2021-2022 $ 471,334,679
(A + E)
See Accompanying Notes to the Appropriations Limit Schedule.
3
City of Santa Clarita
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2022
Note 1— Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California
governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective
for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the
appropriations limit is subject to an agreed upon procedures review in connection with the annual audit.
Note 2 — Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is
required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population
factors discussed in Notes 3 and 4 below.
Note 3 — Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the
jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is
located. The factor adopted by the City for the year ended June 30, 2022, represents the annual percentage change
in population for the City.
Note 4 — Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th
quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the
percentage change in the local assessment roll from the preceding year due to the change of local nonresidential
construction. The factor adopted by the City for the year ended June 30, 2022, represents the annual percentage
change for per capita personal income.
Note 5 — Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such
as the transfer of responsibility for municipal services to, or from, another government agency or private entity.
The City had no such adjustments for the year ended June 30, 2022.
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
December 21, 2022
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
We have audited the financial statements of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City of Santa Clarita, California (the "City") and the financial
statements of Air Quality Improvement Special Revenue Fund, Transit Enterprise Fund, and Open Space Preservation
District Special Revenue Fund for the year ended June 30, 2022. Professional standards require that we provide you
with information about our responsibilities under generally accepted auditing standards, and Government Auditing
Standards, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to you dated April 29, 2022. Professional standards also require that we
communicate the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the City are described in Note 1 to the basic financial statements. As described in Note 1 to the
financial statements, the City implemented the GASB 87 — Leases. No other new accounting policies were adopted
and the application of existing policies was not changed during 2022. We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have
been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected. The most sensitive
estimates affecting the City's financial statements were:
• Management's estimate of the investment fair market value is based on information provided by U.S.
Bank, the custodian of the investments based on interactive data. We evaluated the key factors and
assumptions used to develop the investment fair market value in determining that it is reasonable in
relation to the financial statements taken as a whole.
• Management's estimate of the depreciation on capital assets is based on the industry standard and past
experience on actual useful life of the asset groups. We evaluated the key factors and assumptions
used to develop the depreciation on capital assets in determining that it is reasonable in relation to the
financial statements taken as a whole.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
• Management's estimate of the net pension liabilities is based on the actuarial valuation on
total pension liability and based on audited financial statements on fiduciary net position for
Ca1PERS plans. We evaluated the key factors and assumptions used to develop the net
pension liability in determining that it is reasonable in relation to the financial statements
taken as a whole.
• Management's estimate of the net other postemployment benefits ("OPEB") liability is based
on the actuarial valuation on total OPEB liability and financial statements on fiduciary net
position. We evaluated the key factors and assumptions used to develop the OPEB liability in
determining that it is reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement
users. The most sensitive disclosures affecting the financial statements were:
• Note 1 — Summary of Significant Accounting Policies
• Note 13 — Pension Plan
• Note 14 — Other Postemployment Benefits ("OPEB")
• Note 20 — Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other
than those that are clearly trivial, and communicate them to the appropriate level of management. Management has
corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and
corrected by management were material, either individually or in the aggregate, to each opinion unit's financial
statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 21, 2022.
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting
principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed
on those statements, our professional standards require the consulting accountant to check with us to determine that
the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards,
with management each year prior to retention as the City's auditors. However, these discussions occurred in the
normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the Management's Discussion & Analysis, Budgetary Comparison
Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions —
Pensions, the Schedules of Changes in Net OPEB Liability and Related Ratios, and Schedules of Contributions —
Other Postemployment Benefits, which are Required Supplementary Information ("RSI") that supplement the basic
financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not
audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the Combining and Individual Fund Financial Statements, which accompany the
financial statements but are not RSL With respect to this supplementary information, we made certain inquiries of
management and evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our
audit of the financial statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial
statements but are not RSL Such information has not been subjected to the auditing procedures applied in the audit of
the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is
not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
,I;i ----
Santa Ana, California
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City of Santa Clarita, California
Annual Comprehensive Financial Report
Year Ended June 30, 2022
Prepared by the Finance Division
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
INTRODUCTORY SECTION (Unaudited
Page
GFOA Certificate of Achievement for Excellence in Financial Reporting............................................................v
Letterof Transmittal.............................................................................................................................................vii
Elected Officials and Executive Management...................................................................................................... xv
OrganizationChart ..............................................................................................................................................xvii
Map......................................................................................................................................................................xix
FINANCIAL SECTION
Independent Auditors' Report on the Audit of the Financial Statements.......................................................1
Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) ...................5
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof Net Position........................................................................................................................18
Statementof Activities.............................................................................................................................20
Fund Financial Statements:
Governmental Fund Financial Statements:
BalanceSheet....................................................................................................................................26
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position...................................................................29
Statement of Revenues, Expenditures, and Changes in Fund Balances............................................30
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the
Government -Wide Statement of Activities.................................................................................32
Proprietary Fund Financial Statements:
Statementof Net Position..................................................................................................................35
Statement of Revenues, Expenses, and Changes in Net Position......................................................36
Statementof Cash Flows...................................................................................................................37
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position..................................................................................................41
Statement of Changes in Fiduciary Net Position...............................................................................42
Notes to the Basic Financial Statements.....................................................................................................47
V
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule:
GeneralFund..........................................................................................................................................103
Bridge and Thoroughfare Special Revenue Fund..................................................................................104
Developer Fees Special Revenue Fund..................................................................................................105
Public Library Special Revenue Fund....................................................................................................106
Landscape Maintenance District 91 Special Revenue Fund..................................................................107
AmericanRescue Plan...........................................................................................................................108
BudgetaryInformation................................................................................................................................109
Schedule of'Changes in Net Pension Liability and related ratios —Pensions:
CAPERSMiscellaneous........................................................................................................................110
Schedule of'City Contributions —Pensions:
Ca1PERSMiscellaneous........................................................................................................................112
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios:
Other Postemployment Benefits ("OPEB") Plan...................................................................................114
Schedule of'Contributions — Other Postemployment Benefits ("OPEB') Plan........................................116
Schedule of Money Weighted Rate of Return — OPEB..............................................................................118
Supplementary Information:
Nonmajor Governmental Funds:
CombiningBalance Sheet......................................................................................................................125
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances..............................137
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual:
Bikeway Special Revenue Fund......................................................................................................149
Gas Tax Special Revenue Fund.......................................................................................................150
PropA Special Revenue Fund.........................................................................................................151
Special Assessment Special Revenue Fund.....................................................................................152
Street Lighting District Special Revenue Fund...............................................................................153
Measure M Local Return Special Revenue Fund............................................................................154
SB 1 Road Repair and Activity Special Revenue Fund...................................................................155
State Park Special Revenue Fund....................................................................................................156
Transportation Development Act 8 Special Revenue Fund............................................................157
Traffic Safety Special Revenue Fund..............................................................................................158
Community Development Block Grant Special Revenue Fund......................................................159
Air Quality Management District Special Revenue Fund...............................................................160
Stormwater Special Revenue Fund..................................................................................................161
Surface Transportation Program Special Revenue Fund.................................................................162
m
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Continued):
BJA Law Enforcement Special Revenue Fund...............................................................................163
Supplemental Law Grant Special Revenue Fund............................................................................164
HOMESpecial Revenue Fund........................................................................................................165
Library Facilities Fees Special Revenue Fund................................................................................166
Public Education and Government Special Revenue Fund.............................................................167
Proposition C Special Revenue Fund..............................................................................................168
Measure H Special Revenue Fund...................................................................................................169
Federal Grants Special Revenue Fund.............................................................................................170
Measure R Special Revenue Fund...................................................................................................171
Measure R Highway Improvement Special Revenue Fund.............................................................172
Measure M ATP Special Revenue Fund.........................................................................................173
Measure A Safe Parks Special Revenue Fund.................................................................................174
Measure W Safe Clean Water Special Revenue Fund.....................................................................175
Tourism Marketing District Special Revenue Fund........................................................................176
Open Space Preservation District Special Revenue Fund...............................................................177
Miscellaneous Grants Special Revenue Fund.................................................................................178
Park Dedication Special Revenue Fund..........................................................................................179
Housing Successor Agency Special Revenue Fund........................................................................180
Tourism Marketing Bureau Special Revenue Fund.........................................................................181
Areawide Special Revenue Fund.....................................................................................................182
Cooper Street Parking Structure CFD 2020 Special Revenue Fund...............................................183
Vista Canyon Wastewater Standby District Special Revenue Fund................................................184
Capital Projects Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual:
General............................................................................................................................................185
CivicArts Projects Fund.................................................................................................................186
Debt Service Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual:
Public Financing Authority Debt Service Fund..............................................................................................187
Internal Service Funds:
Combining Statement of Net Position....................................................................................................191
Combining Statement of Revenues, Expenses and Changes in Net Position........................................192
Combining Statement of Cash Flows.....................................................................................................193
Custodial Fund:
Combining Statement of Fiduciary Net Position...................................................................................196
Combining Statement of Changes in Fiduciary Net Position................................................................198
U
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents.........................................................................................................203
Financial Trends:
NetPosition by Component..........................................................................................................................204
Changesin Net Position...............................................................................................................................
206
Fund Balances — Governmental Funds.........................................................................................................210
Changes in Fund Balances — Governmental Funds......................................................................................212
Revenue Capacity:
Assessed Valuation and Actual Value of Taxable Property.........................................................................214
Redevelopment Agency — Assessed Valuation and Actual Value of Taxable Property...............................216
Assessed Values — Taxable Property............................................................................................................218
Assessed Values — Use Category Summary.................................................................................................220
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years..........................................................221
Direct and Overlapping Property Tax Rates — One Year Detail of Rates
Producing Revenue for City and Associated Redevelopment Agencies................................................222
Principal Property Taxpayers.......................................................................................................................223
Property Tax Levies, Tax Collections and Delinquencies............................................................................224
Top Property Owners Based on Net Values.................................................................................................225
Project Area Assessment Appeals Summary and Tax Collection History...................................................227
Charge Detail Report for CFD 2002-1 (Valencia Town Center)..................................................................228
Debt Capacity:
Ratios of Outstanding Debt by Type............................................................................................................230
Ratios of Net General Bonded Debt Outstanding.........................................................................................232
Direct and Overlapping Tax and Assessment Debt......................................................................................233
Legal Debt Margin Information...................................................................................................................234
PledgedRevenue Coverage.......................................................................................................................... 236
Demographic and Economic Information:
Demographic and Economic Statistics.........................................................................................................237
Operating Information:
PrincipalEmployers.....................................................................................................................................238
Full -Time and Part -Time City Employees by Function...............................................................................239
OperatingIndicators by Function.................................................................................................................240
Capital Asset Statistics by Function.............................................................................................................242
lv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Clarita
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
v
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City Of
SANTA CGLARITA
23920 Valencia Boulevard • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX_ (661) 259-8125
www.santa-clarita.com
December 21, 2022
Honorable Mayor, Mayor Pro Tern and City Councilmembers:
The Annual Comprehensive Financial Report (ACFR) of the City of Santa Clarita for
fiscal year ended June 30, 2022, 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. The Pun Group, 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, 2022. 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
"Single Audit" performed by our independent audit firm. The Single Audit was designed to
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Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 2
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 just over 73 square miles. With an estimated
population of 232,066 inclusive of the recent Tesoro annexation, the City is the third -
largest in Los Angeles County and the 17th largest in the State of California. Santa Clarita
offers an expansive parks and recreation network, with 36 beautiful park facilities, more
than 13,000 acres of preserved 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 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 businesses with those of the community members, resulting in an
unmatched quality of life.
Consistently recognized as the Most Business -Friendly City in Los Angeles County, the
City of Santa Clarita is guided by a community -minded, business -driven approach to
economic development. The City is committed to business -friendly practices that have
resulted in a robust local economy with record -breaking sales tax revenue and low
commercial vacancy rates. These practices helped Santa Clarita rebound from the
pandemic and have positioned Santa Clarita well for the future.
The Center at Needham Ranch, a business park on Sierra Highway in Newhall with up to
four -million square feet of industrial and commercial use, was approved by the City
Council in 2003. After more than 20 years in planning and development, Phase I is
constructed with seven buildings built, providing a total of approximately one -million
square feet. Phase I includes Illumination Dynamics, LA North Studios, DrinkPAK,
Amazon, and Tires Warehouse as its tenants, and will soon be fully occupied. Grading
work is nearly completed f'or Phase I1, which will total roughly 660,000 additional square
feet. The first building in Phase II is already under construction, with the final three
buildings approved and expected to start construction in the next several months.
Santa Clarita Valley's newest community, Vista Canyon, continues to make great progress
in its development. Vista Canyon creates a unique environment focused on connectivity,
accessibility and sustainability, making it the perfect location to live, work and play. The
new 185-acre development brings 950,000 square feet of commercial and office space, up
to 1,100 residential units and 200 hotel rooms to our community. Construction of the 245
single-family homes by KB Home has recently been completed and all have been sold, and
the Vista Canyon Park and a 480-home luxury apartment complex were also completed in
2022.
The economy continues to recover, with a number of new businesses opening in our
community this year in spite of rising costs. These include Anna's Armenian Bakery, Wow
Choripan, Five Below, Kotsu Ramen, Crab N' Spice, Urban Outfitters, One Bite
Dumpling, Lineaedge, Currying Flavors, M132 Entertainment, Furniture with Attitude,
Windsor, Perfect Tux, Fabletics, All About Sushi, Devil & Angel, Uba Tuba Acai, LA
North, Hello Subaru, Papaya, Undisputed Sole, Stichic and QLuv, The Good Feet Store
and the SCV Hub. Businesses slated to open later in the year include Fun Burger, Seafood
City Market, Okawa Sushi & Ramen, Yogis Grill, Round 1, The Stand, Bonchon Korean
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Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 4
Fried Chicken, Street Corner Urban Market and Hanasaki Sushi Bar, Big Chicken, Madre,
Bestway Sandwiches, Total Wine & More, Burning Mouth Nashville Hot Chicken and
Omaya's Lebanese Cuisine.
Specifically, in Old Town Newhall, a number of new businesses have opened, including
Reyes Winery, Hart & Main, Rustic Burger and Maginn's Irish Pub. Businesses opening
soon include Caf6 Blank, Wide Eye Lounge, C'est L'Amour Nail & Spa, Victory Public
House and Form + Content.
Santa Clarita saw more than 178,400 square feet of available commercial space advertised
online this year, creating ample opportunities for more businesses to expand in the City.
Commercial vacancy rates in office and retail space have fallen slightly compared to the
second quarter of last year, with the office vacancy rate at 11.9 percent, compared to 12
percent in 2021, and the retail vacancy rate at 5.2 percent, compared to 5.7 percent in 2021.
There is high demand for industrial space, and industrial vacancy rates are at an all-time
low at 1.7 percent. This is a significant drop in industrial vacancy when compared to the
5.1 percent rate of last year's second quarter.
The City's Film Office experienced another strong year. In Fiscal Year 2021-22, the Film
Office issued 627 permits, which led to 1,729 film days and $43,925,500 in estimated
economic impact. Santa Clarita is home to more than 60 sound stages, 10 movie ranches,
and a multitude of film -related businesses. Popular television shows like "The Afterparty,"
"Cesar Milan: Better Human, Better Dog," "CSI: Vegas," "Good Trouble," "Holey
Moley," "NCIS," "Mayans M.C.," "The Old Man," "Promised Land," "S.W.A.T.,"
"Westworld" and "Wipeout" were based in Santa Clarita and regularly filmed on location
within the City. Numerous feature films were filmed at sound stages in Santa Clarita in the
last year, including "Don't Worry Darling" and "Kimi." Other productions that were
filmed on location around town include "9 Bullets," "Amsterdam," "Breaking," "Dog,"
"Jackass Forever," "King Richard," "North of The 10," "Purple Hearts" and "Wildflower."
Tourism continues to be a significant part of the City of Santa Clarita's economy,
contributing nearly $4.9 million to the General Fund from Transient Occupancy Tax
(TOT) in the Fiscal Year 2021-22, a record high. The Tourism Marketing District (TMD),
a collaborative assessment program and partnership between the City and local hotels,
collected over $917,000 in support of increased marketing and promotion of Santa Clarita
as a tourism destination. Tourism Marketing District 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. The following events were among those held in Santa
Clarita in the last fiscal year: MLK Hockey Tournament, Grace Community Church
Shepard's Conference, USA Ultimate (frisbee) and Santa Clarita Regional Qualifier Flag
Football World Championship. The City also attracted large swimming and figure skating
events and the Los Angeles Spartan Sprint Weekend, which brought over 16,000
participants and spectators in December 2021 and returned in 2022.
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
Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 5
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
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 Capital Improvement
Program (CIP) is a component of the annual budget process that addresses the City's short -
and long-term capital needs. Just as important, the CIP emphasizes a plan of action that
effectively maintains the existing infrastructure to a sound physical standard, as well as
providing new facilities to support current growth and complement new development.
In October 2022, the California State Auditor published a Fiscal Health Analysis of over
430 cities in the State. The City of Santa Clarita was recently ranked in the top five 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 OPEB
obligation receiving a total combined score of 94.10.
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Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 6
In October 2022, Standard & Poor's Global Ratings (S&P) affirmed the City's 'AAA' issuer
credit rating (ICR). The City was able to demonstrate strength in areas of the City's
economy, management, as well as strong budgetary flexibility and liquidity with an
operating surplus. Standard & Poor's Global Ratings recognized the City's budgetary
flexibility is among the strongest nationwide for cities of comparable size with an available
fund balance. This resulted in affirming the City of Santa Clarita's 'AAA' issuer credit
rating (ICR) with a "stable" outlook. This ICR reflects S&P's forward -looking opinion of
the City's overall creditworthiness and the capacity and willingness to meet financial
obligations.
MAJOR MILESTONES IN FISCAL YEAR 2021-2022
❖ The City installed battery back-up systems at eight signalized intersections,
resulting in a total of 195 signalized intersections in the City equipped with battery
back-up.
❖ The City welcomed its 361h park with the opening of Vista Canyon Park. The new
park offers a playground featuring sensory musical elements, three pickleball
courts, two tennis courts, a full basketball court, an outdoor picnic gazebo and the
Mitchell House facility available for event reservations.
❖ The City broke ground on its second inclusive play area at West Creek Park. The
project is set to include a shaded inclusive play area with fun, challenging and
engaging activities for people of all abilities, measuring approximately 10,600
square feet upon completion. An outdoor community fitness area and a Bankshot
Playcourt, which offers basketball hoops at varying heights with non -
conventionally angled backboards, will also be included in this project.
❖ The City hosted six Celebrate events, celebrating the sights, sounds, tastes and
styles of cultures from around the world at the new Canyon Country Community
Center.
❖ The City's award -winning Volunteer Program had another successful year with
3,312 volunteers donating over 14,000 hours of their time to programs and projects
throughout Santa Clarita.
❖ The City hosted the celebratory Party on The Pointe event to mark the end of
COVID-19 restrictions and come together as a community. The event offered
attendees a full afternoon and evening of free fun and entertainment, including
musical performances, a Mechanical Shark, Drop Zone, Super Slide, Zip Line,
Rock Climbing Wall, Giant Bounce House, Indoor Roller Rink, Nerf Wars, a Ferris
Wheel and much more.
❖ The City's Graffiti team hosted the first Graffiti Removal Day on June 4, 2022.
Volunteers worked with the City's Graffiti Removal Team to paint a large-scale
beautification project in the Saugus neighborhood. Volunteers walked down into
Xll
Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 7
the Bouquet Canyon Creek and used 285 gallons of paint to cover a concrete wall
that is visible from the street and sidewalk. Altogether, volunteers and staff
successfully painted approximately 527 feet of wall.
AWARDS AND ACKNOWLEDGEMENTS
The City of Santa Clarita continued to receive accolades over the last year. This year Santa
Clarita was named the Third Safest City in America by SmartAsset, the 15th Happiest City
in America by Wallethub, the 8th Most Physically Active City in America by
ChamberofCommerce.org and was once again named a Most Business -Friendly City
Finalist. This last year marked the 32nd 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 recognitions from the League of California Cities. This year, the City was
also recognized with a record seven California Association of Public Information Officials
and six City -County and Marketing Association (3CMA) awards.
The City of Santa Clarita was awarded the prestigious 2022 International Institute of
Municipal Clerks Program Excellence in Governance Award for Innovative Customer
Service f'or the widely popular City Hall Ceremonies Program. This award was created to
recognize a city that has developed innovative programs and techniques that greatly benefit
its community and citizens.
Assistant City Manager Frank Oviedo was recognized with the 2021 John H. Nail
Memorial Award from the League of California Cities. This distinguished award annually
recognizes an outstanding municipal assistant who has contributed significantly to his or
her city government and to the advancement of the community as a whole.
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement f'or Excellence in Financial Reporting to the City of
Santa Clarita f'or its Annual Comprehensive Finanical Report (ACFR) for the fiscal year
ended June 30, 2021. This was the 33rd 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 has received an Investment Policy Certificate of Excellence
Award from the Association of Public Treasurers of the United States and Canada for its
Fiscal Year 2022-23 Investment Policy. This year marks the 28th consecutive year that the
City has received the nationally recognized Certificate of Excellence Award from the
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Honorable Mayor, Mayor Pro Tern and City Councilmembers
Page 8
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 Annual Achievement of Excellence in 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
12th 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, Fabiola Gutierrez; Financial Analyst
Kristin Blanton; and Financial Analyst, Purevsuren Wrinkle. 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; Director of Neighborhood Services,
Jerrid McKenna; Director of Public Works, Mike Hennawy; Director of Recreation and
Community Services, Janine Prado; Director of Economic Development, Tom Cole;
Director of Community Development, Jason Crawford; and Director of Human Resources
and Library Services, Kristi Hobrecker, for their continuing efforts in administering the
financial operations of the City conservatively and responsibly.
Sincerely,
Carmen Magana
Director of Administrative Services/City Treasurer
Xiv
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2022
City Council
Laurene Weste
Jason Gibbs
Bill Miranda
Marsha McLean
Cameron Smyth
City Officials
Ken Striplin
Frank Oviedo
Joseph Montes
Carmen Magana
Tom Cole
Jerrid McKenna
Mike Hennawy
Janine Prado
MAYOR
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
CITY MANAGER
ASSISTANT CITY MANAGER
CITY ATTORNEY
DIRECTOR OF ADMINISTRATIVE SERVICES/CITY TREASURER
DIRECTOR OF COMMUNITY DEVELOPMENT
DIRECTOR OF NEIGHBORHOOD SERVICES
DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DIRECTOR OF RECREATION AND COMMUNITY SERVICES
Xv
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xvi
ORGANIZATION CHART
As of June 30, 2022
Santa Clarita Residents
City Council
City Manager
Administrative
Neighborhood
Community
Recreation and
Services
Services
Development
Community Services
Finance
Environmental Services
Community Preservation
Arts and Events
Clerk and Contract Services
Parks
Economic Development
Recreation and Community Services
Technology Services
Special Districts
Planning
Open Space
Transit
Public Library
City Manager's
Public
L
Office
Works
Communications
Building and Safety
Human Resources
Capital Improvement Program
Intergovernmental Relations
Engineering Services
Sheriffs Department
General Services
Fire Protection
Traffic & Transportation Planning
Xvll
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xx
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Audit of the Financial Statements
Opinions
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
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 (the "City"),
as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying 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, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
("GAAS"), and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States ( "Government Auditing Standards "). Our responsibilities under those
standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Managementfor 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, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Auditors' Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion
and Analysis, the Budgetary Comparison Schedules, the Schedule of Changes in Net Pension Liability and Related
Ratios, the Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios, the Schedules of
Contributions — Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related
Ratios, and the Schedules of Contributions — Other Postemployment Benefits on pages 5 through 14 and 103 through
118 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.
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Supplementary 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 Combining and Individual Fund Financial Statements are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the auditing procedures
applied in the audit of the 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 GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the Introductory and Statistical Sections but does not include the basic financial statements and our auditor's report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2022, 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.
Santa Ana, California
December 21, 2022
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MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
Fiscal Year Ended June 30, 2022
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, 2022. 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 $1.5 billion. Of this amount, $170
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 $23.8 million and deferred
inflows of resources total $48.4 million.
• The City's total deferred outflows of resources decreased by $3.0 million. The deferred inflows of
resources increased by $16.4 million. The changes in deferred outflow and inflows were related
primarily to Other Post -Employment Benefits (OPEB) and Pensions (Table 1).
• The City's total net position increased by $97.6 million. Net position of the business -type activities
increased by $9.6 million, and the net position of the governmental activities increased by $88
million (Table 1 & 2).
• The net capital assets of the City's governmental activities increased by $44.6 million, or 4% over
last fiscal year. The increase was in part due to an increase of $131 million in buildings and other
improvements, an increase of $19.6 million in site improvements and a decrease of $100.9 million
in construction in progress. See Note 9 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 $376 million. This represents an increase of $64 million as compared to the prior
year.
• Within governmental funds, the General Fund reported a fund balance of $229 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 47 governmental funds. The General Fund,
Bridge and Thoroughfare Fund, Developer Fees Fund, Public Library Fund, Landscape Maintenance
District #1 Fund, and American Rescue Plan 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 $97.6 million, increasing from $1.4 billion to $1.5 billion.
THE CITY AS A WHOLE (CONTINUED)
ASSETS:
Current and Oth e r As s ets
Capital assets, net
Noncurrent Assets
TOTALASSETS
DEFERRED OUTFLOWS OF RESOURCES:
LIABILITIES:
Noncurrent Liabilities
Other Li abi Iti e s
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
NET POSITION:
Net investment in
capital assets
Restricted
Unrestricted
TOTAL NET POSITION
TABLE 1
CITY OF SANTA CLARITA'S NET POSITION
Governmental Activities
Business -type Activities
Total
2022
2021
2022
2021
2022
2021
$ 428.661,383
5 377,162.686
$ 14.655,474
$10,525,050
$ 443,316,857
$ 397,687,736
1.153.645,585
1,109,047.265
95.597,321
88,023,510
1,249,242,906
1,197,070,775
29.691,980
43,320.511
64,927
301,813
29,756,907
43,622,324
1,611,998.948
1.529.530,462
110,317.722
98.850.373
1.722.316.670
1.628.380,935
23.126,064
25,994.473
670,483
805,886
23,796,547
26,800,359
128,344.760 170.050,079 86,839 1.326.221 128.431.607 171.376.300
65,017.652 47.566,870 5,072.443 2.637,655 70.090,095 50.204,525
193.362,420 217,615.949 5.159,282 3,963,075 198,521.702 221,580,825
47.050,514 31,200.601 1.314,290 773,223 48,364,804 31,973,824
1,080,862,181 1.032.579,113 95,597.321 08.023.510 1.176.459.502 1,120,602.623
152,349,197 147.556,902 - - 152.349.197 147,556,902
151,500.700 126.571,370 0,917.312 6.095.650 170.410.012 133.457.020
1,394,712.078 1.306.707,385 104,514.633 94.919.160 1.499.226.711 1.401.626.545
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, 2022, assets exceeded liabilities by $1.50 billion. The largest component of the City's net
position, 79%, is represented by its $1.18 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, 10.2% represents resources subject to external restrictions
on how they may be used. The remaining 11.4% of unrestricted net position, $170 million, may be used to
meet the City's ongoing obligations to citizens and creditors. Within the restricted section of net position,
$2.65 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 $88 million over the prior year. The unrestricted net position of the business -type
activities increased by $2 million.
9
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities increased by $25.3 million. The cost of all governmental activities
this year was $178.7 million, an increase of 5.33% over the past year. As shown in the Statement of
Activities, the governmental activities expenses were ultimately financed in part by the taxpayers, as $72.3
million in revenues were generated by service revenues received from the performance of these activities;
another $38.1 million was received from government agencies and other organizations that subsidized
certain programs with operating grants and contributions; and another $68.6 million in revenues was
generated from capital grants and contributions. The $25.8 million increase in capital grants and
contributions is mainly attributed to the recordation of Plum Canyon Park and Vista Canyon Park. Overall,
the City's governmental program and general revenues amounted to $289 million, which funded the
expenses and resulted in a $111 million increase in net position. The decrease of $10.9 million in Property
Taxes was due to relocation of Public Library Fund property tax, Measure W Safe Clean Water Fund
property tax and Landscape Maintenance District Fund Ad Valorem from Property Taxes in prior year to
Program Revenues in the current year.
TABLE 2
CITY OF SANTA CLARITA'S CHANGES IN NET POSITION
Program Revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues:
Taxe s:
Property taxes
Other taxes
Other
Total Revenues
Governmental Activities Business -type Activities Total
2022 2021 2022 2021 2022 2021
$ 72,280,606 $ 63,758,091 $ 5,936,598 $ 5,799,364 $ 78,217,204 $ 69,557,455
38,093,703 44,524,768 12,087,130 29,444,844 50,180,833 73,969,612
68,626,540 42,849,916 13,402,091 9,036,527 82,029,431 51,086,443
42,113,398 52,981,738 42,113,398 52,981,738
68,153,369 57,150,510 68,153,359 57,150,510
220.172 2.946.239 1.413.909 41,855 1.634.081 2.988.094
289,487,788 264,211,262 32,840,528 44,322,590 322,328,316 308,533,852
General government
14,728,358
51,594,707
14,728,358
51,594,707
Public safety
30,936,129
35,138,793
30,936,129
35,138,793
Recreation and community services
23.989,989
17,008,912
-
-
23,989,989
17,008,912
Publicworks
30,493,258
15,328,245
-
-
30,493,258
15,328,245
Community development
12,203.347
11,435, 675
12,203,347
11,435, 675
Neighborhood services
42,179,104
13,065,065
42,179,104
13,865,066
Unallocated infrastructure depreciation
21,432,943
21,543,801
-
-
21,432,943
21,543,801
Interest and fiscal charges
2,743,559
3,742,582
-
-
2,743,559
3,742,582
Transit
-
-
31,342,873
27,898,955
31,342,873
27,898,955
Total Expenses
178,706,687
169,657,781
31,342,873
27,898,955
210,049,560
197,556,736
IncreaseiDecrease in Net Postion Before Transfers
110,781,101
94,553,481
1,497,655
16,423,635
112,278,756
110,977,116
Transfers
(8,097,818)
347,468
0,097,810
(347,468)
-
Changes in Net Position
102,683,283
94,900,949
9,595,473
16,076,167
112,278,756
110,977,116
Net Position— Beginning of Year
1,292,028,795
1,211,806,436
94,919,160
78,842,993
1,386,947,955
1,290,649,429
Net Position — End of Year
$1,394,712,078
$1,306,707,385
$104,514.633
$94,919,160
$1,499,226,711
$1,401.626.545
Business -Type Activities
Business -type activities increased the City's net position by $9.6 million for the current year. Business -type
activities revenues decreased by $11.5 million during the year for a total of $32.8 million in revenues,
excluding transfers in from governmental activities. The decreased revenue was largely due to an decrease
in operating grants and contributions of $17.4 million. Related transit activity expenses increased by $3.4
million.
10
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $376
million, an increase of $64 million over the prior year. Approximately $152 million is restricted and already
reserved for specific restricted purposes.
The total governmental fund balance includes the general fund balance of $229 million. The General Fund
is the chief operating fund of the City. Fund balance for the General Fund, as restated, increased by $31
million as a result of $6.3 million higher sales tax revenues due to strong economic activity, $2.6 million
higher transient occupancy tax revenues due to the onboarding of four new hotels and higher occupancy
rates, $2.3 million higher recreation revenues as a result of pre -pandemic programming levels allowed
under eased COVID restrictions. In addition, $39.8 million was accumulated and assigned to fund future
facilities outlined in the City's strategic plan.The unassigned fund balance of $62.1 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 18 to the financial statements.
Other major fund balance changes are noted below:
• The Bridge and Thoroughfare Fund has realized an increase of $650,210 in its fund balance from
prior year. The increase included $696,621 developer fees revenue from the Eastside project
areas.
• The Developer Fee Fund has realized an increase of $1.7 million in its fund balance from the prior
year. The increase is attributed to the collection of developer fees for projects as well as fire district
fees.
• The Public Library Fund realized an increase of $1.9 million in its fund balance as a result of
increasing property tax revenue attributed to higher property value.
• The Landscape Maintenance District's fund balance decreased by $32,354 from the prior year due
to various capital projects, including $281 thousand for a Landscape Maintenance District Paseo
Concrete project and Shangri-La Slope Restoration project.
• In the current year, the American Rescue Plan Fund is classified as a major fund. Its fund balance
remained zero, recognizing revenue for expenditures incurred during the year.
In addition to the major funds, the fund balances for the other governmental funds experienced an
aggregate increase of $9.1 million. The increase included $3.3 million and $4.0 million in special revenue
funds from the Proposition C and Measure W Clean Safe Water, respectively.
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 $9.6 million. The increase was mainly due to reserving Measure M and Measure R Bus Operations
revenues for use in a subsequent fiscal year. The unrestricted portion of the business -type activities net
position increased by $2.0 million from the prior year.
The Internal Service Funds net position increased by $1,027,407 or 10.5%. The ending fund balance for
Internal Service Funds is $10.8 million, of which $9.1 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2021-2022 original (adopted) general fund budgeted expenditures and
transfers of $116.2 million to the final budgeted expenditures of $120.2 million results in a net increase of
$4 million.
THE CITY'S FUNDS (CONTINUED)
Included in this net increase is $11,595,760 committed purchase orders and contracts from the prior June
30 balance, as well as $942,881 of prior fiscal year operating and capital improvement projects approved
for carryover into fiscal year 2021-2022.
Original Budget Continued Encumbrances Beg. Balance - Supplemental Final Budget
+ Appropriations + = Changes =
$116,237,448 + $942,881+ $11,595,760 = $128,776,089 - $ 8,537,037 = $120,239,052
Comparing the beginning budget of $129 million with the final budget of $120 million indicates the General
Fund had supplemental budgetary decrease of $8.6 million during the fiscal year. The budgetary decrease
was primarily due to adjusting the funding source for the Central Park Buildout project from General Fund
to American Rescue Plan Fund. 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 $12.1 million,
inclusive of transfers in. Included in the increase is $4.5 million and $680 thousand respectively in sales tax
and real property transfer tax, $500,000 in transient and occupancy tax revenue attributed to the addition
of new hotels, $3 million increase for excess workers compensation actuarially determined reserve,
$601,759 interfund transfer to the general fund capital projects, $31,441 from fire district administrative
fees, $100,000 in sponsorship revenue attributed to the resumption of City events, and $58,533 for SB-90
claims reimbursement from the State of California. It also included $429,569 decreases in recreation
revenues as a result of reduced and/or cancelled recreation programming due to COVID-19 state and
county restrictions.
At year-end, the City's actual general fund revenues were $587,974 more than the final budgetary
estimates. Actual general fund expenditures were less than the final budgetary estimates by $12.6 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 $1.2 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, drainage systems and intangible asset, right of use (see Table 3). The City adopted GASB
Statement No.87 during the year which resulted in the recordation of an intangible asset of $869,757.
Additional information on the City of Santa Clarita's implementation of new GASB pronouncement can be
located in Note 1 to the financial statements.
TABLE 3
CITY OF SANTA CLARITA'S CAPITAL ASSETS (net of depreciation)
Governmental Activities
Business T�ype Activities
Total
2022
2021
2022
2021
2022
2021
Land
$ 258.886,797
$ 263.001.440
$15,087.880
$ 15.087.880
$ 273.974.677
$ 278.089,320
Construction in progress
33.825,759
134,762286
14,121.301
10,328,640
47,947,060
146,090,926
Infrastructure_ net
630,779.944
632,023.372
-
-
630,779,944
632,023.372
Depreciable site improvements. net
47,424,345
27,819,275
6,836,581
7,404,801
54,260,926
36,224,076
Depreciable building and
improvements. net
177,178.354
46.127,995
29.155.395
26.190,090
206,333.749
72,318,085
Depreciable equipment, net
4,660.629
5.312,897
30.396.164
29.012.099
35,076.793
34.324.996
Intangible asset. net
869.757
-
-
-
869.757
-
TOTALS
1.163,645,585
1.109.047.265
95.597,321
88.023.610
1249.242.906
1,197,070,776
12
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Major capital asset events during the year included:
• Depreciable equipment had a net increase totaling $751,798
• Construction in progress had a net decrease by $97.1 million, due to completion of construction in
progress
• Depreciable building and improvements had a net increase totaling $134 million, including the new
Sheriff's Station and Canyon Country Community Center
• Intangible asset -right of use increased by $869,757
Additional information on the City of Santa Clarita's capital assets can be located in Note 9 to the financial
statements
Debt Administration
At year-end, the City's total debt amounted to $85.6 million in bonds, financed purchase notes, 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
Financed Purchase Notes Payable
Lease Payable
Compensated Absences
Claims Payable
TOTAL
Governmental Activities
2022
2021
14.136
783
14.461.762
61.626.658
63,414.066
129.277
542.094
880.316
-
4.071.368
4.313.263
4.646
360
6.410,
646
85 488
762
89,141
813
Business -type Activities
2022 2021
142.766 141,669
142,766 141 669
Total
2022 2021
14.136 783 14 461.762
61.626.668 63.414.068
129.277 642.094
880.316 -
4.214.133 4.464,922
4.646 360 6,411646
85.631 527 69 263 462
The City's governmental activities had $85.5 million in debt at year-end. Governmental activities long-term
debt decreased overall by $3.7 million. The City adopted GASB Statement No.87 during the year which
resulted to a lease payable of $880,316 as of June 30, 2022. Additional information on the City of Santa
Clarita's implementation of new GASB pronouncement can be located in Note 1 to the financial statements.
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, 2022, 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, 2022 was
$1,439,651,798. 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 11 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 35% or $46.2 million as projected in the 2022-2023
budget.
• Property tax revenues account for 33% of the General Fund budget or $44.4 million in 2022-2023.
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 $132.7 million, resulting in a balanced budget, an
operating surplus of $315,656, and a 20% operating reserve of $19.8 million. The City's 2022-2023
operating and capital budget for all funds is $299.3 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 2022-2023 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
2022-2023 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
BASIC FINANCIAL STATEMENTS
15
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16
GOVERNMENT -WIDE FINANCIAL STATEMENTS
17
ASSETS
Current assets:
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivable
Leases receivable, due within one year
Due from other government
Prepaid items
Deposits
Total current assets
Noncurrent assets:
Restricted Cash and Investments:
Cash and investments
Cash and investment with fiscal agents
Cash and investment with PARS
Lease receivable, due in more than one year
Notes to RDA Successor Agency
Net pension asset
Net OPEB asset
Long-term receivables
Capital assets:
Non -depreciable
Depreciable, net
Intangible asset, net
Total capital assets, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Unamortized deferred loss on refunding
Total deferred outflows of resources
City of Santa Clarita
Statement of Net Position
June 30, 2022
Primary Government
Governmental
Business -Type
Activities
Activities
Total
$ 402,871,984
$ 7,337,210
$ 410,209,194
557,572
76,295
633,867
705,633
13,774
719,407
16,287,311
-
16,287,311
268,267
-
268,267
7,275,308
7,224,661
14,499,969
635,308
3,534
638,842
60,000
-
60,000
428,661,383
14,655,474
443,316,857
621,463
-
621,463
2,657,166
-
2,657,166
2,005,688
-
2,005,688
3,689,745
3,689,745
16,098,270
-
16,098,270
417,723
15,215
432,938
2,021,856
49,712
2,071,568
2,180,069
-
2,180,069
292,712,556
29,209,181
321,921,737
860,063,272
66,388,140
926,451,412
869,757
-
869,757
1,153,645,585
95,597,321
1,249,242,906
1,183,337,565
95,662,248
1,278,999,813
1,611,998,948
110,317, 722
1,722,316,670
11,388,275
414,777
11,803,052
10,398,684
255,706
10,654,390
1,339,105
-
1,339,105
23,126,064
670,483
23,796,547
See accompanying Notes to the Basic Financial Statements.
18
City of Santa Clarita
Statement of Net Position (Continued)
June 30, 2022
Primary Government
Governmental
Business -Type
Activities
Activities
Total
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
29,183,161
5,016,517
34,199,678
Accrued interest payable
392,574
-
392,574
Unearned revenue
17,419,722
-
17,419,722
Deposits payable
3,308,188
-
3,308,188
Due to other governments
7,734,479
-
7,734,479
Compensated absences - due within one year
2,693,769
55,926
2,749,695
Claims and judgement - due within one year
1,714,712
-
1,714,712
Long-term liabilities - due within one year
2,571,047
-
2,571,047
Total current liabilities
65,017,652
5,072,443
70,090,095
Noncurrent liabilities:
Compensated absences - due in more than one year
1,377,599
86,839
1,464,438
Claims and judgement - due in more than one year
2,930,648
-
2,930,648
Long-term liabilities - due in more than one year
74,200,987
-
74,200,987
Developer credits
49,835,534
-
49,835,534
Total noncurrent liabilities
128,344,768
86,839
128,431,607
Total liabilities
193,362,420
5,159,282
198,521,702
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
21,512,142
783,549
22,295,691
Deferred inflows of resources related to OPEB
21,583,508
530,741
22,114,249
Leases
3,954,864
-
3,954,864
Total deferred inflows of resources
47,050,514
1,314,290
48,364,804
NET POSITION
Net investment in capital assets
1,080,862,181
95,597,321
1,176,459,502
Restricted:
Landscape maintenance
38,419,618
-
38,419,618
Lighting District
15,028,273
-
15,028,273
Capital improvements
17,818,695
-
17,818,695
Transportation
45,430,246
-
45,430,246
Open space preservation
6,835,213
-
6,835,213
Public safety
922,853
-
922,853
Public library
7,359,462
-
7,359,462
Air quality improvement
285,522
-
285,522
Stormwater
3,957,776
-
3,957,776
Public education and government
803,812
-
803,812
Public television
17,280
-
17,280
Tourism marketing
895,514
-
895,514
Low and moderate income housing
3,961,350
-
3,961,350
Clean safe water
5,513,314
-
5,513,314
Debt service
1,094,902
-
1,094,902
Pensions
2,005,688
-
2,005,688
Other
1,999,679
-
1,999,679
Total restricted
152,349,197
-
152,349,197
Unrestricted (deficit)
161,500,700
8,917,312
170,418,012
Total net position
$ 1,394,712,078
$ 104,514,633
$ 1,499,226,711
See accompanying Notes to the Basic Financial Statements.
19
Functions/Programs
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
City of Santa Clarita
Statement of Activities
For the Year Ended June 30, 2022
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Expenses
Services
Contributions
Contributions
$ 14,728,358
$ 916,671
$ 389,178
$ 75,000
30,936,129
1,658,867
6,220,500
1,095,955
23,989,989
11,352,114
-
503,889
30,493,258
21,724,121
16,477,970
37,976,399
12,203,347
3,073,196
13,458,236
-
42,179,104
33,555,637
1,547,819
28,975,297
21,432,943
-
-
-
2,743,559
-
-
-
178,706,687
72,280,606
38,093,703
68,626,540
31,342,873
5,936,598
12,087,130
13,402,891
31,342,873
5,936,598
12,087,130
13,402,891
$ 210,049,560
$ 78,217,204
$ 50,180,833
$ 82,029,431
20
Functions/Programs
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
General revenues and transfers:
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Property taxes in lieu of motor vehicle fee
Investment income (loss)
Miscellaneous
Gain on sale of capital asset
Total general revenues
Transfers
Changes in net position
Net position
Beginning of year, as restated (Note 22)
End of year
City of Santa Clarita
Statement of Activities (Continued)
For the Year Ended June 30, 2022
Net (Expenses) Revenues and
Changes in Net Position
Governmental
Business -Type
Activities
Activities
Total
$ (13,347,509) $
-
$ (13,347,509)
(21,960,807)
-
(21,960,807)
(12,133,986)
-
(12,133,986)
45,685,232
-
45,685,232
4,328,085
-
4,328,085
21,899,649
-
21,899,649
(21,432,943)
-
(21,432,943)
(2,743,559)
-
(2,743,559)
294,162
-
294,162
-
83,746
83,746
-
83,746
83,746
294,162
83,746
377,908
42,113,398
-
42,113,398
49,476,922
-
49,476,922
10,883,225
-
10,883,225
4,874,977
-
4,874,977
2,569,074
-
2,569,074
349,171
-
349,171
(4,773,346)
(185,016)
(4,958,362)
4,993,518
1,562,025
6,555,543
-
36,900
36,900
110,486,939
1,413,909
111,900,848
(8,097,818)
8,097,818
-
102,683,283
1,292,028,795
$ 1,394,712,078
9,595,473 112,278,756
94,919,160 1,386,947,955
$ 104,514,633 $ 1,499,226,711
21
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22
FUND FINANCIAL STATEMENTS
23
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24
GOVERNMENTAL FUND FINANCIAL STATEMENTS
25
City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2022
Special Revenue Funds
General
Bridge and
Developer
Public
Fund
Thoroughfare
Fees
Library
ASSETS
Cash and investments
$ 215,082,447
$ 14,493,304
$ 10,386,255
$ 3,148,016
Accounts receivable, net
271,191
-
-
35
Interest receivable
392,588
27,309
19,339
5,788
Taxes receivables
13,747,176
-
-
474,469
Loans receivable
_
_
_
_
Leases receivable
3,958,012
-
-
-
Notes to RDA Successor Agency
8,708,425
-
7,389,845
-
Prepaid items
272,875
-
-
135,639
Due from other governments
257,984
-
-
-
Due from other funds
4,471,424
-
-
-
Advance to other funds
5,989,211
-
133,442
-
Deposits with others
60,000
-
-
-
Restricted assets:
Cash and investments
_
_
_
_
Cash and investments with fiscal agents
2,650,251
-
-
-
Cash and investments with PARS
2,005,688
-
-
-
Total assets
$ 257,867,272
$ 14,520,613
$ 17,928,881
$ 3,763,947
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 11,696,308 $
9,407 $
6,441,723 $
217,387
Deposit payable
3,308,188
-
-
-
Due to other governments
7,700,000
-
-
-
Unearned revenue
665,095
368,724
-
38,377
Due to other funds
_
_
_
_
Advance from other funds
-
6,122,653
-
-
Total liabilities
23,369,591
6,500,784
6,441,723
255,764
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
1,792,999
-
-
-
Leases
3,954,864
-
-
-
Total deferred inflows of resources
5,747,863
-
-
-
Fund Balances:
Nonspendable
15,030,511
-
-
135,639
Restricted
4,655,939
8,019,829
11,447,358
3,372,544
Committed
-
-
783
-
Assigned
146,922,006
-
39,017
_
Unassigned (deficit)
62,141,362
-
-
-
Total fund balances
228,749,818
8,019,829
11,487,158
3,508,183
Total liabilities, deferred inflows of
resources, and fund balances
$ 257,867,272 $
14,520,613 $
17,928,881 $
3,763,947
(Continued)
See accompanying Notes to the Basic Financial Statements.
26
City of Santa Clarita
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
Special Revenue Funds
Landscape
Nonmajor
Total
Maintenance
American
Governmental
Governmental
District #1
Rescue Plan
Funds
Funds
ASSETS
Cash and investments
$ 23,334,578
$ 15,545,176
$ 106,579,838
$ 388,569,614
Accounts receivable, net
26,966
-
259,380
557,572
Interest receivable
42,992
-
189,840
677,856
Taxes receivables
597,004
-
1,468,662
16,287,311
Loans receivable
-
-
2,180,069
2,180,069
Leases receivable
-
-
3,958,012
Notes to RDA Successor Agency
-
-
-
16,098,270
Prepaid costs
135,149
-
74,081
617,744
Due from other governments
-
-
7,017,324
7,275,308
Due from other funds
-
-
-
4,471,424
Advance to other funds
-
-
-
6,122,653
Deposits with others
-
-
-
60,000
Restricted assets:
Cash and investments
-
-
621,463
621,463
Cash and investments with fiscal agents
-
-
6,915
2,657,166
Cash and investments with PARS
-
-
-
2,005,688
Total assets
$ 24,136,689
$ 15,545,176
$ 118,397,572
$ 450,154,462
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 940,736 $
291,729
$ 9,129,239
$ 28,726,529
Deposit payable
-
-
-
3,308,188
Due to other governments
-
-
34,479
7,734,479
Unearned revenue
-
15,253,447
1,094,079
17,419,722
Due to other funds
-
-
4,471,424
4,471,424
Advance from other funds
-
-
-
6,122,653
Total liabilities
940,736
15,545,176
14,729,221
67,782,995
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
-
2,812,539
4,605,538
Leases
-
-
3,954,864
Total deferred inflows of resources
-
-
2,812,539
8,560,402
Fund Balances:
Nonspendable
135,149
-
74,081
15,375,380
Restricted
23,060,804
-
101,559,709
152,116,183
Committed
-
-
-
783
Assigned
-
-
1,042,532
148,003,555
Unassigned (deficit)
-
-
(1,820,510)
60,320,852
Total fund balances
23,195,953
-
100,855,812
375,816,753
Total liabilities, deferred inflows of
resources, and fund balances
$ 24,136,689 $
15,545,176
$ 118,397,572
$ 452,160,150
(Concluded)
See accompanying Notes to the Basic Financial Statements.
27
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28
City of Santa Clarita
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2022
Total Fund Balances - Total Governmental Funds $ 375,816,753
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not current financial resources and therefore are not reported in
governmental funds. Those assets consist of:
Amount reported in government -wide statement of position:
Nondepreciable assets $ 292,712,556
Depreciable assets, net of $1,628,506 reported in Internal Service Funds 858,434,766
Intangible assets 869,757 1,152,017,079
Some of the City's receivables for franchise fees, operating and capital grant reimbursements will be collected after year
end, but are not available soon enough to pay for current -period expenditures, and therefore, are reported as unavailable
revenues in the governmental funds. 4,605,538
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and
payable in the current period or not available for current expenditures and are not reported in the governmental fund
financial statements:
Deferred outflows of resources related to pensions, net of $43,436 reported in Internal Service Funds 11,344,929
Net pension asset, net of $1,590 reported in Internal Service Funds 416,133
Deferred inflows of resources related to pensions, net of $(81,886) reported in Internal Service Fund (21,430,256)
Net other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of
resources are not due and payable in the current period or not available for current expenditures and are not reported in
the governmental fund financial statements:
Deferred outflows of resources related to OPEB, net of $31,963 reported in Internal Service Funds 10,366,721
Net OPEB asset net of $6,213 reported in Internal Service Funds 2,015,643
Deferred inflows of resources related to OPEB, net of $(66,342) reported in Internal Service Funds (21,517,166)
Internal service funds are used by the City to charge the cost of materials and supplies, maintenance and repair of
vehicles and equipment and printing services provided to the various departments of the City. The assets and liabilities
of the internal service funds are included in governmental activities in the Statement of Net Position. 10,775,939
Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the
governmental funds. (392,574)
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and,
accordingly are not reported as fund liabilities. All liabilities, both current and long-term are reported in the Statement of
Net Position.
Unamortized deferred loss on refunding 1,339,105
Long-term debt (73,404,593)
Unamortized bond premium (3,367,441)
Developers credits (49,835,534)
Compensated absences, net of $(33,170) reported in Internal Service Funds (4,038,198)
Net position of governmental activities $ 1,394,712,078
See accompanying Notes to the Basic Financial Statements.
29
City of Santa Clarita
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
General
Bridge and
Developer
Public
Fund
Thoroughfare
Fees
Library
REVENUES:
Taxes
$ 108,881,674
$ -
$ - $
8,817,029
Licenses, and permits
9,724,390
-
-
-
Special assessments
-
-
-
-
Intergovernmental
6,743,551
-
-
-
Charges for services
11,407,669
-
-
321,083
Investment loss
(4,598,424)
(56,444)
(69,549)
(64,074)
Fines and forfeitures
886,194
-
-
-
Developer fees
-
1,446,787
2,962,100
-
Other revenues
3,749,636
368,724
539
87,044
Total revenues
136,794,690
1,759,067
2,893,090
9,161,082
EXPENDITURES:
Current:
General government
15,036,401
-
- -
Public safety
28,771,125
-
819,999 -
Recreation and community services
18,092,923
-
- -
Public Works
14,300,658
140,021
- -
Community development
7,255,026
-
- -
Neighborhood services
277,940
-
- 6,957,836
Capital outlay
8,345,506
611,526
252,758 307,033
Debt service:
Principal retirement
282,509
-
- -
Interest and fiscal charges
7,776
357,310
- 23,185
Total expenditures
92,369,864
1,108,857
1,072,757 7,288,054
REVENUES OVER (UNDER) EXPENDITURES 44,424,826 650,210 1,820,333 1,873,028
OTHER FINANCING SOURCES (USES):
Transfers in 2,005,376 - - -
Transfers out (15,298,008) - (131,441) -
Total other financing sources (uses) (13,292,632) - (131,441) -
NET CHANGE IN FUND BALANCES 31,132,194 650,210 1,688,892 1,873,028
FUND BALANCES:
Beginning of year, as restated (Note 22) 197,617,624 7,369,619 9,798,266 1,635,155
End of year $ 228,749,818 $ 8,019,829 $ 11,487,158 $ 3,508,183
(Continued)
See accompanying Notes to the Basic Financial Statements.
30
City of Santa Clarita
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
Landscape
Nonmajor
Total
Maintenance
American
Governmental
Governmental
District#1
Rescue Plan
Funds
Funds
REVENUES:
Taxes
$ 271,857
$ -
$ 5,446,599
$ 123,417,159
Licenses, and permits
-
-
-
9,724,390
Special assessments
14,280,265
-
22,093,747
36,374,012
Intergovernmental
-
4,692,488
58,781,129
70,217,168
Charges for services
-
-
952,387
12,681,139
Investment loss
(535,517)
-
(2,293,828)
(7,617,836)
Fines and forfeitures
-
-
1,055,832
1,942,026
Developer fees
-
-
265,238
4,674,125
Other revenues
-
-
1,433,948
5,639,891
Total revenues
14,016,605
4,692,488
87,735,052
257,052,074
EXPENDITURES:
Current:
General government
- 162,511
457,574
15,656,486
Public safety
- 80,478
518,390
30,189,992
Recreation and community services
- 13,914
787,416
18,894,253
Public Works
- -
9,129,324
23,570,003
Community development
- -
5,891,661
13,146,687
Neighborhood services
13,405,051 4,309
23,085,106
43,730,242
Capital outlay
526,369 4,431,276
39,646,847
54,121,315
Debt service:
Principal retirement
- -
2,080,612
2,363,121
Interest and fiscal charges
- -
2,469,401
2,857,672
Total expenditures
13,931,420 4,692,488
84,066,331
204,529,771
REVENUES OVER (UNDER) EXPENDITURES 85,185 - 3,668,721 52,522,303
OTHER FINANCING SOURCES (USES):
Transfers in
10,000
- 17,584,435
19,599,811
Transfers out
(127,539)
- (12,140,641)
(27,697,629)
Total other financing sources (uses)
(117,539)
- 5,443,794
(8,097,818)
NET CHANGE IN FUND BALANCES
(32,354)
- 9,112,515
44,424,485
FUND BALANCES:
Beginning of year, as restated (Note 22)
23,228,307
- 91,743,297
331,392,268
End of year
$ 23,195,953 $
- $ 100,855,812
$ 375,816,753
(Concluded)
See accompanying Notes to the Basic Financial Statements.
31
City of Santa Clarita
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government -Wide Statement of Activities
For the Year Ended June 30, 2022
Net change in fund balances - total governmental funds: $ 44,424,485
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
capital assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital
expenditures exceeded depreciation in the current period:
Capital outlay expenditures, net of $90,073 reported in Internal Service Funds $ 50,518,986
Capital contribution from County of Los Angeles 30,821,842
Depreciation and amortization expense, net of $364,838 reported in Internal Service Funds (31,760,091) 49,580,737
The net effect of disposal of capital assets (5,910,387)
Certain accrued revenues such as franchise fee and grants do not provide current financial resources and therefore, are
not reported in the governmental funds as revenues. This is the amount of the net change in these accrued revenue
amounts during the current period. (3,851,355)
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 the governmental funds:
Change in compensated absences, net of $6,985 reported in internal service funds 248,870
Pension expense, net of pension contribution made after measurement date 7,421,345
OPEB expense, net of OPEB contribution made after measurement date 1,464,908
Accrued interest for long-term debt 10,734
Principal repayment of long-term debt 2,363,121
Bond premium amortization 103,379
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 the credit does not impact expenditures in the governmental
funds, but reduces long-term liabilities in the Statement of Net Position.
Net effect of redemption of district credit 5,800,039
Internal service funds are used by management to charge the costs of certain activities, such as workers' compensation
self-insurance, general liability self-insurance, vehicles, and technology to individual funds. The net revenue (expense)
of these internal service funds are reported as governmental activities. 1,027,407
Change in net position of governmental activities $ 102,683,283
See accompanying Notes to the Basic Financial Statements.
32
PROPRIETARY FUND FINANCIAL STATEMENTS
33
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34
City of Santa Clarita
Statement of Net Position
Proprietary Funds
June 30, 2022
ASSETS
Current assets:
Cash and investments
Accounts receivable
Interest receivable
Due from other governments
Prepaid items
Total current assets
Noncurrent assets:
Net pension asset
Net OPEB asset
Capital assets:
Capital assets, not being depreciated
Capital assets, being depreciated, net
Total capital assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOW OF RESOURCES
Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Total deferred outflow of resources
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Compensated absence, due within one year
Claims and judgments, due within one year
Total current liabilities
Noncurrent liabilities:
Compensated absences payable, due in more than one year
Claims and judgments, due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
NET POSITION
Investment in capital assets
Unrestricted
Total net position
Business -type Governmental
Activities Activities
Transit
Enterprise Fund
$ 7,337,210
76,295
13,774
7,224,661
3,534
14,655,474
15,215
49,712
29,209,181
66,388,140
95,597,321
95,662,248
110,317,722
Internal
Service Funds
$ 14,302,370
27,777
17,564
14,347,711
1,590
6,213
1,628,506
1,628,506
1,636,309
15,984,020
414,777 43,346
255,706 31,963
670,483 75,309
5,016,517 456,632
55,926 11,116
- 1,714,712
5,072,443 2,182,460
86,839
86,839
5,159,282
783,549
530,741
1,314,290
22,054
2,930,648
2,952,702
5,135,162
81,886
66,342
148,228
95,597,321 1,628,506
8,917,312 9,147,433
$ 104,514,633 $ 10,775,939
See accompanying Notes to the Basic Financial Statements.
35
City of Santa Clarita
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2022
OPERATING REVENUES:
Charges for services
Other revenues
Total operating revenues
OPERATING EXPENSES:
Administration and personnel services
Transportation services
Services and supplies
Depreciation expense
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Intergovernmental
Investment income (loss)
Gain on sale of capital assets
Total nonoperating revenues (expenses)
TRANSFERS AND CAPITAL CONTRIBUTIONS:
Transfers in
Transfer out
Capital grants and contributions
Total capital contributions and transfers
CHANGE IN NET POSITION (DEFICIT)
NET POSITION:
Beginning of year
End of year
Transit
Enterprise Fund
Business -type Governmental
Activities Activities
Internal
Service Funds
$ 5,936,598 $
5,552,256
1,562,025
79
7,498,623
5,552,335
3,292,139
1,226,551
18,591,237
-
2,999,912
2,598,717
6,459,585
364,848
31,342,873
4,190,116
(23,844,250) 1,362,219
12,087,130 -
(185,016) (334,812)
36,900 -
11,939,014 (334,812)
8,336,691
(238,873)
13,402,891
21,500,709
9,595,473 1,027,407
94,919,160 9,748,532
$ 104,514,633 $ 10,775,939
See accompanying Notes to the Basic Financial Statements.
36
City of Santa Clarita
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise Fund
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users
$ 7,423,629
$ 5,552,335
Cash paid to suppliers for goods and services
(21,467,148)
(2,255,320)
Cash paid to employees for services
(1,292,676)
(1,201,173)
Cash paid to claims
-
(1,765,286)
Net cash provided by (used in) operating activities
(15,336,195)
330,556
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers in
8,336,691
-
Cash transfers out
(238,873)
-
Federal and state funding received
11,448,297
-
Net cash provided by noncapital fmancing activities
19,546,115
-
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital contributions
13,402,891
-
Acquisition of capital assets
(14,033,396)
(90,073)
Proceed from sale of capital assets
36,900
Net cash (used in) capital and related financing activities
(593,605)
(90,073)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment loss
(191,401)
(337,687)
Net cash (used in) investing activities
(191,401)
(337,687)
Net increase (decrease) in cash and cash equivalents
3,424,914
(97,204)
CASH AND CASH EQUIVALENTS:
Beginning of year
3,912,296
14,399,574
End of year
$ 7,337,210
$ 14,302,370
NET INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss)
$ (23,844,250)
1,362,219
Adjustments to reconcile operating income (loss) to net cash
provided by (used in) operating activities:
Depreciation
6,459,585
364,848
Change in assets and liabilities:
(Increase) decrease in accounts receivable
(74,994)
-
(Increase) decrease in prepaid items
14,701
(5,507)
(Increase) decrease in net pension asset
(1,236,024)
31,513
(Increase) decrease in net OPEB asset
252,101
(129,172)
(Increase) decrease in deferred outflows of resources related to pensions
199,614
20,861
(Increase) decrease in deferred outflows of resources related to OPEB
(64,211)
(8,026)
Increase (decrease) in accounts payable and accrued liabilities
2,415,120
400,168
Increase (decrease) in compensated absences
1,096
6,985
Increase (decrease) in claims and judgements
-
(1,765,286)
Increase (decrease) in deferred inflows of resources related to pensions
765,091
79,957
Increase (decrease) in deferred inflows of resources related to OPEB
(224,024)
(28,004)
Total adjustment
8,508,055
(1,031,663)
Net cash provided by (used in) operating activities
$ (15,336,195)
$ 330,556
See accompanying Notes to the Basic Financial Statements.
37
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38
FIDUCIARY FUND FINANCIAL STATEMENTS
39
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40
City of Santa Clarita
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
ASSETS
Cash and investments
Interest receivable
Contributions receivable
Due from other governments
Restricted:
Cash and investments
Cash and investments held with PARS:
Cash and cash equivalents
U.S. government issues
Corporate notes
Foreign issues
Municipal issues
Domestic common stocks
Foreign stocks
Mutual funds - equity
Mutual fmds - fixed income
Interest
Cash and investments with fiscal agent
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding
Total deferred outflows of resources
LIABILITIES
Accounts payable and accrued liabilities
Interest payable
Long term liabilities, due within one year
Long term liabilities, due in more than one year
Total liabilities
NET POSITION
Other post employment benefits
Individual, organizations, and other governments
Total net position (deficit)
Pension (and Other
Employee Benefit)
Private -Purpose
Trust Fund
Trust Fund
Other Post
Redevelopment
Employment Benefits
Successor Custodial
("OPEB") Trust Fund
Agency Funds
$ - 1,430,140 $ 1,050,750
- 2,615 1,897
- - 911,106
- 7,734,479 -
-
21,579
-
2,764,186
-
-
6,214,981
-
-
5,583,690
-
-
151,058
-
-
375,645
-
-
4,803,555
-
-
116,471
-
-
20,306,179
-
-
3,662,838
-
-
83,672
-
-
-
1,159,343
2,927,444
44,062,275
10,348,156
4,891,197
-
2,001,828
-
-
2,001,828
-
-
324
3,845
-
302,116
-
-
968,660
-
-
46,424,177
-
-
47,695,277
3,845
44,062,275
-
-
-
(35,345,293)
4,887,352
$ 44,062,275
$ (35,345,293) $
4,887,352
See accompanying Notes to the Basic Financial Statements.
41
City of Santa Clarita
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
Pension (and Other
Employee Benefit)
Private -Purpose
Trust Fund
Trust Fund
Other Post
Redevelopment
Employment Benefits
Successor
(OPEB) Trust Fund
Agency
Custodial
Funds
ADDITIONS:
Redevelopment property tax trust fund $ - $ 2,958,673 $ -
Special assessment from property owners - - 2,299,667
Employer contributions 301,000 - -
Net investment loss (7,090,104) (55,563) (41,176)
Total additions (6,789,104) 2,903,110 2,258,491
DEDUCTIONS:
Benefit payments to plan participants 1,326,369 - -
Contractual services 105,844 4,638 30,767
Payments for debt services - 1,615,573 2,162,073
Payments to other governments - - 18,413
Total deductions 1,432,213 1,620,211 2,211,253
Change in net position (8,221,317) 1,282,899 47,238
NET POSITION:
Beginning of year, as restated (Note 22) 52,283,592 (36,628,192) 4,840,114
End of year $ 44,062,275 $ (35,345,293) $ 4,887,352
See accompanying Notes to the Basic Financial Statements.
42
NOTES TO THE BASIC FINANCIAL STATEMENTS
43
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44
City of Santa Clarita
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1—
Summary of Significant Accounting Policies...................................................................................... 47
A. Financial Reporting Entity..................................................................................................................
47
B. Basis of Accounting and Measurement Focus....................................................................................
48
C. Cash, Cash Equivalents and Investments............................................................................................
51
D. Cash and Investments with Fiscal Agents...........................................................................................
52
E. Fair Value Measurement.....................................................................................................................
52
F. Interfund Transactions.........................................................................................................................
52
G. Allowance for Uncollectible Accounts...............................................................................................
53
H. Prepaid Items.......................................................................................................................................
53
I. Lease Receivable.................................................................................................................................
53
J. Capital Assets......................................................................................................................................
54
K. Deferred Outflows and Inflows of Resources.....................................................................................
55
L. Unearned and Unavailable Revenue...................................................................................................
55
M. Long -Term Debt..................................................................................................................................
55
N. Lease Liabilities..................................................................................................................................
55
O. Compensated Absences.......................................................................................................................
56
P. Claims and Judgements.......................................................................................................................
56
Q. Pensions...............................................................................................................................................56
R. Other Postemployment Benefits (" OPEB")........................................................................................
57
S. Property Taxes and Special Assessments............................................................................................
57
T. Net Position and Fund Balances..........................................................................................................
58
U. Spending Policy..................................................................................................................................
59
V. Use of Estimates..................................................................................................................................
59
W. Implementation of New GASB Pronouncement.................................................................................
59
Note2
— Cash and Investments............................................................................................................................
60
A. Deposits...............................................................................................................................................60
B. Investments.........................................................................................................................................
61
C. Investments Authorized by Debt Agreements.....................................................................................
62
D. Risk Disclosures..................................................................................................................................
62
E. Fair Value Measurement.....................................................................................................................
64
F. Local Agency Investment Fund (" LAIF")..........................................................................................
65
G. Loas Angeles County Pooled Investment Fund..................................................................................
65
H. California Asset Management Program..............................................................................................
65
Note3
— Accounts Receivable.............................................................................................................................. 65
Note4
— Loans Receivable.................................................................................................................................... 66
Note5
— Due from Other Government............................................................................................................... 66
Note 6
— Notes to RDA Successor Agency........................................................................................................... 66
Note7
— Lease Receivables................................................................................................................................... 66
Note8
— Interfund Transactions.......................................................................................................................... 67
A. Due From/To Other Funds..................................................................................................................
67
B. Advances To/From Other Funds.........................................................................................................
67
C. Transfers In/Out..................................................................................................................................
69
Note9
— Capital Assets.........................................................................................................................................
70
A. Governmental Activities.....................................................................................................................
70
B. Business -type activities.......................................................................................................................
71
Note10 — Deposit Payable.................................................................................................................................... 71
45
City of Santa Clarita
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note11—
Long -Term Liabilities..........................................................................................................................
72
A.
Governmental Activities.....................................................................................................................
72
B.
Business -types Activities...................................................................................................................
78
C.
Fiduciary Funds...................................................................................................................................
78
D.
Non -City Obligation............................................................................................................................
80
Note12 —
Risk Management................................................................................................................................
81
A.
Special Districts Risk Management Authority ("SDRMA")..............................................................
81
B.
California Joint Powers Insurance Authority ("CJPIA")....................................................................
81
C.
Claims and Judgments Payable...........................................................................................................
83
Note13 —
Pension Plan.........................................................................................................................................
83
A.
General Information about the Pension Plan.......................................................................................
83
B.
Net Pension Liability...........................................................................................................................
85
C.
Changes in the Net Pension Liability..................................................................................................
87
D.
Pension Expense, Deferred Outflows and Inflows of Resources Related to Pensions ........................
88
Note 14 —
Other Postemployment Benefits("OPEB").......................................................................................
89
A.
General Information about the OPEB Plan.........................................................................................
89
B.
Net OPEB Liability.............................................................................................................................
90
C.
Changes in the Net OPEB Liability....................................................................................................
91
D.
Cash and Investment Held in Trust.....................................................................................................
93
E.
Concentrations of Credit Risk.............................................................................................................
93
Note 15 —
Deferred Compensation Plan/Defined Contribution Plan...............................................................
94
Note16 —
Developer Credits................................................................................................................................
94
Note 17 —
Net Investment in Capital Assets........................................................................................................
94
Note 18 —
Classification of Fund Balances..........................................................................................................
95
Note 19 —
Santa Clarita Watershed Recreation and Conservancy Authority .................................................
96
Note 20 —
Commitments and Contingencies.......................................................................................................
96
A.
Project Commitments..........................................................................................................................
96
B.
Encumbrances.....................................................................................................................................
96
C.
Contingencies......................................................................................................................................97
Note 21—
Other Required Disclosure.................................................................................................................
97
A.
Expenditures in Excess of Appropriation............................................................................................
97
B.
Deficit Net Positions and Fund Balances............................................................................................
98
Note 22 —
Restatement of Beginning Net Position and Fund Balance..............................................................
98
Note23 —
Subsequent Events...............................................................................................................................
99
46
City of Santa Clarita
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies
The basic financial statements of the City of Santa Clarita, California, (the "City") have been prepared in accordance
with accounting principles generally accepted in the United States of America ("U.S. GAAP") as applied to
governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting
body for establishing governmental accounting and financial reporting principles. The following is a summary of the
significant policies:
A. Financial Reporting Entity
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 Units
The financial statements include the financial activities of the City of Santa Clarita, the primary government, and
its component units. Component units are legally separate entities for which the primary government is
financially accountable. The City has two component units, the Santa Clarita Public Financing Authority (the
"Authority") and the Santa Clarita Public Television Authority (the "Television Authority), and one fiduciary
component unit, the Other Post -Employment Benefits ("OPEB") Plan Trust Fund.
Although these component units are legally separate from the City, they have been "blended" as though they are
part of the City because the component units' governing body is substantially the same as the City's and there is
a financial benefit or burden relationship between the City and the component units; management of the City has
operational responsibilities for the component unit; and/or the component unit provides services entirely, or
almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does
not provide services directly to it. Management determined that the following component units should be blended
based on the criteria above:
Santa Clarita Public FinancingAuthority -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 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 Authority is
reported as a blended component unit in the City's financial statements. 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.
Santa Clarita Public Television Authority - The Santa Clarita Public Television Authority, California (the
"Authority") is a joint powers authority formed under the provision of Section 6500 of the California Government
Code in 2009 by the City and the William S. Hart Union High School District. The primary purpose of the
Television Authority is to produce local community service programming. The Television Authority provides
public affairs and informational programming, as well as providing programming services for local government,
educational and public agency meetings. The following entities have joined the Authority: Saugus Union School
District, Newhall School District, Sulfur Springs School District, Castaic Union School District, and College of
the Canyons. The Authority 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 and Television Authority
have a financial benefit or burden relationship; therefore, the Television Authority is reported as a blended
component unit in the City's financial statements as special revenue fund. Separate financial statements for the
Television Authority are prepared and can be obtained from the City's Finance Division.
47
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
A. Financial Reporting Entity (Continued)
Other Post Employment Benefits ("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, and legally separate from the City. The Plan Trustee is U.S.
Bank and the Trust Administrator is Public Agencies Retirement Services ("PARS"). The City has administrative
involvement with the Plan, through City management and the City Council, in directing the use of assets to ensure
benefits are paid to intended recipients. Further, as the City is required to contribute to the Plan. The OPEB Plan
Trust Fund is reported as a fiduciary activity as the City has control of the trust assets and the activity is OPEB
arrangement administered through a qualifying trust.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources
are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and
the means by which spending activities are controlled.
Government -Wide Financial Statements
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, including capital assets, as well as
infrastructure assets, deferred outflows of resources, liabilities, including long-term liabilities, and deferred
inflows 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. On an accrual
basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from
property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations
is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements
include timing requirements, which specify the year when the resources are required to be used or the year when
use is first permitted, matching requirements, in which the City must provide local resources to be used for a
specified purpose, and expenditure requirements, in which the resources are provided to the City on a
reimbursement basis. Fiduciary activities are not included in these statements.
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 in regards to interfund activities, payables and receivables. 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:
48
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government -Wide Financial Statements (Continued)
• Due from and to other funds
• Advances to and from other funds
• Transfers in and out
Governmental Fund Financial Statements
A Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances are presented for all
major governmental funds and aggregated nonmajor funds. Accompanying schedules are presented to reconcile
and explain the differences in fund balances as presented in these statements, to the net position presented in the
government -wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are 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 Change in Fund Balances presents increases
(revenue 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. 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 nonexchange transaction 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.
Revenues are recorded when received in cash, except those revenues subject to accrual are recognized when due.
Property taxes, taxpayer -assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net of
estimated refunds and uncollectible amounts, and intergovernmental revenues 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.
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 Thoroughfarepecial 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.
49
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
➢ The Public LibM 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.
➢ The American Rescue Plan Act Special Revenue Fund is used 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.
Additionally, the City reports the following governmental 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).
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) are included on the Statement
of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues)
and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in
the period in which they are earned while expenses are 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.
A separate column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the Government -Wide
Financial Statements. The City's internal service funds include three individual funds which provide services
directly to other City funds. These areas of service include self-insurance, computer replacement, and vehicle
replacement. These funds provide service to other City departments on a cost reimbursement basis.
The City reports the following major proprietary fund:
➢ The Transit Enterprise Fund is used to account for the operation of the City's local public transit bus system.
50
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary
Net Position. The City's fiduciary funds represent an OPEB Plan trust fund, a private purpose trust fund, and
custodial funds. These fiduciary funds are accounted for on the accrual basis of accounting. These fiduciary fund
activity assets are controlled by the City and the assets are not derived 1) solely from the government's own -
source revenues or 2) from government -mandated nonexchange transactions or voluntary nonexchange
transactions.
The City reports the following three types of fiduciary funds:
➢ 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 Amy 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 Custodial Funds are used to account for assets for the benefit of organizations or other governments that
are not part of the City. In addition, the assets are not derived from the City's provision of goods or services
to those individuals, organizations, or other governments. 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:
Five funds are reported under the custodial fund type:
• 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)
• Santa Clarita Watershed Recreation and Conservancy Authority (the "Watershed Authority") Fund
The Assessment District and Community Facilities District Custodial Funds were established to account for
receipt of special taxes and assessments used to pay principal and interest on related bonds that are not direct
City liabilities, as well as receipt and disbursement of capital project bond proceeds related to bonds that are
not direct obligations of the City. The Watershed Authority Custodial Fund 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 Watershed
Authority. The Watershed Authority holds land ($9,937,976) and other capital assets ($60,204 net of
accumulated depreciation). These amounts are excluded from the City's custodial fund, but reported within
the Watershed Authority's financial statements.
51
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
C. Cash, 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.
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 City participates in the Local Agency Investment Fund ("LAIF"), Los Angeles County Pooled Investment
Fund ("LACPIF"), and the California Asset Management Program ("CAMP"), investment pool managed by the
State of California, Los Angeles, County, and CAMP. LAIF has invested a portion of the pool funds in structured
notes and asset -backed securities. LAIF's investments are subject to credit risk with the full faith and credit of
the State of California collateralizing these investments. In addition, these structured notes and asset -backed
securities are subject to market risk as a result of changes in interest rates. All investments in LAIF, LACPIF,
and CAMP are reported at amortized cost, which approximates fair value.
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
D. Cash and Investments with Fiscal Agents
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.
E. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about
fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are
categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels
of inputs are as follows:
➢ Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the
measurement date.
➢ Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the assets or
liabilities through corroboration with market data at the measurement date.
52
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
E. Fair Value Measurement (Continued)
➢ Level 3 — Unobservable inputs that reflect management's best estimate of what market participants
would use in pricing the assets or liabilities at the measurement date.
F. Interfund Transactions
Outstanding short-term borrowing between funds are reported to as "due from/to other funds." Interfund loans
are reported as advances to and from other funds and are eliminated upon consolidation. Advances to other funds
are presented as nonspendable in General Fund's fund balance to indicate that they are not in a spendable form.
For all other funds, advances to other funds are presented as restricted fund balance since monies collected in
future years would be restricted. When there are residual balances outstanding between the governmental
activities and business -type activities, they are reported in the government -wide financial statements as "internal
balances."
Interfund services provided are treated as revenues and expenses. Administrative overhead charges included with
centralized expenses charged by the General Fund are included in the direct expenses of enterprise activities.
Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its
related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between
governmental or between proprietary funds are eliminated as part of the reconciliation to the government -wide
financial statements. Any residual balances outstanding between governmental and business -type activities are
reported in the government -wide financial statements as "transfers."
G. Allowance for Uncollectible Accounts
Allowances for uncollectible accounts are maintained on customer and other trade receivables that historically
experience uncollectible amounts. Allowances are based on collection experience and management's evaluation
of the current status of existing receivables.
H. Prepaid Items
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 by using purchase method. A nonspendable
fund balance has been reported in the governmental funds to show that the prepaid items do not constitute
"available spendable resources," even though they are a component of current assets.
L Lease Receivable
The City is a lessor for leases of land and recognizes leases receivable and deferred inflows of resources in the
financial statements. Variable payments based on future performance or usage of the underlying asset are not
included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to
be received during the lease term. The City established a threshold of $100,000 for lease receivables.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred
inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources
are recognized as revenue over the life of the lease term in a systematic and rational method.
53
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
L Lease Receivable (Continued)
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the
expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for
existing leases or the current rate at the time a new lease is executed.
The lease term includes the noncancelable period of the lease plus any option periods that are likely to be
exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the
lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
J. Capital Assets
In the Government -Wide Financial Statements, capital assets are recorded at cost where historical records are
available and at an estimated original cost where no historical records exist. Donated capital assets are valued at
their acquisition value. Capital assets, which include land, site improvements, buildings and improvements, and
equipment and infrastructure assets. General infrastructure assets consist of roads, curbs and gutters, sidewalks,
medians, street signs, bus shelters, bridges, trails, traffic signals, and storm drains/catch basins. City policy has
set the capitalization threshold for reporting capital assets with an initial cost of more than $25,000 for site
improvements and building improvements, $100,000 for infrastructure and $5,000 for all other capital assets and
an estimated useful life in excess of one year. 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:
Assets
Years
Site Improvement
5-25
Building and Improvements
5-50
Equipment
5-25
Infrastructure
20-60
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.
The City established a threshold to recognize a right -to -use lease asset (lease asset) in the government -wide
financial statements and proprietary fund financial statements for a leased asset over $100,000. Lease assets are
recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made
to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor
at or before the commencement of the lease term along with any initial direct costs that are ancillary charges
necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the
shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that
the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over
the useful life of the underlying asset.
54
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
K. Deferred Outflows and Inflows of Resources
The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of
resources, when applicable.
Deferred Outflows of Resources represent a consumption of net position that apply to future periods.
De erred In ows of Resources represent an acquisition of net position that apply to future periods.
L. Unearned and Unavailable Revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions
recorded as unearned revenues are grant revenues received in advance.
In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet
met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports
unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not
available.
M. Long -Term Debt
In the Government -Wide Financial Statements, Proprietary Fund Financial Statements, and Fiduciary Fund
Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate
activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs
except for any portion related to prepaid insurance are recognized as expense in the period incurred. Premiums
or discounts not considered as part of the reacquisition price are amortized over the life of the bond.
The governmental fund financial statements do not present long-term debt and other financed obligations. 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.
N. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $100,000 or more with a lease term greater
than one year in the government -wide and proprietary fund financial statements. Variable payments based on
future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease
liability.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments
expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of
lease payments made.
55
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
N. Lease Liabilities (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
• The City uses incremental borrowing rate provided by the financial institution at July 1, 2021 for
existing leases or the current rate at the time a new lease is executed.
The lease term includes the noncancellable period of the lease. Lease payments included in the
measurement of the lease liability are composed of fixed payments and purchase option price that the
City is reasonably certain to exercise.
• Lease payments included in the measurement of the lease payable is composed of fixed payments to
the lessor.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the
lease liability.
O. 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).
P. 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.
Q. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the plans and
additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are
reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
General Fund and special revenue funds are typically used to liquidate pension liabilities for governmental funds.
The following time frames are used for pension reporting:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
56
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
Q. Pensions (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension
expense systematically over time. The first amortized amounts are recognized in pension expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of
resources related to pensions and are to be recognized in future pension expense. The amortization period differs
depending on the source of the gain or loss. The difference between projected and actual earnings is amortized
straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining
service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of
the measurement period.
R. Other Postemployment Benefits ("OPEB')
For the purpose of measuring the net OPEB liability, 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 OPEB
Plan and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same
basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due
and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market
investments, which are reported at amortized cost.
General Fund and special revenue funds are typically used to liquidate OPEB liabilities for governmental funds.
The following timeframes are reported OPEB reporting:
Valuation Date June 30, 2020
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB
expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of
resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs
depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a
straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected
remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the
beginning of the measurement period.
S. Property Taxes and 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.
57
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
S. Property Taxes and Special Assessments (Continued)
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.
T. Net Position and Fund Balances
In the Government -Wide Financial Statements and proprietary fund financial statements, net position is classified
as follows:
Net Investment in Capital Assets — This component of net position 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 component of net position consists of restricted assets reduced by liabilities and deferred
inflows of resources related to those assets.
Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources,
liabilities, and deferred inflows of resources that are not included in the determination of net investment in
capital assets or the restricted component of net position.
In the Governmental Fund Financial Statements, fund balances are classified as follows:
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 tohim 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.
58
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
T. Net Position and Fund Balances (Continued)
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, 2022, the balance totaled $19,820,000, which is included in the
unassigned fund balance in the General Fund.
U. Spending Policy
Government -Wide Financial Statements and the Pronrietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net position
are available, the City's policy is to apply the restricted component of net position first, then the unrestricted
component of net position as needed.
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
V. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could
differ from those estimates.
W. Implementation of New GASB Pronouncement
In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information
needs of financial statement users by improving accounting and financial reporting for leases by governments.
This Statement increases the usefulness of governments' financial statements by requiring recognition of certain
lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows
of resources or outflows of resources based on the payment provisions of the contract. It establishes a single
model for lease accounting based on the foundational principle that leases are financings of the right to use an
underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -
to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources,
thereby enhancing the relevance and consistency of information about governments' leasing activities. The
effective date of GASB Statement No. 87 (as amended by GASB Statement No. 95) is for fiscal years beginning
after June 15, 2021. Implementation of this Statement resulted in restatement of beginning balance of lease assets
(Note 9) and lease liabilities (Note 11) at July 1, 2021.
59
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Investments
The City had the following cash and investments at June 30, 2022:
Cash and investments
Restricted cash and investments
Total cash and investments
Government -Wide
Fiduciary
Statement of Net Position
Fund
Governmental Business -Type
Statement of
Activities Activities
Net Position Total
$ 402,871,984 $ 7,337,210
$ 2,480,890 $ 412,690,084
5,284,317 -
48,170,641 53,454,958
$ 408,156,301 $ 7,337,210 $ 50,651,531 $ 466,145,042
The City's cash and investments at June 30, 2022, in more detail:
Deposits with financial institutions
$ 113,862,730
Cash on hand
2,993
Total cash
113,865,723
Investments
298,902,862
Investments with fiscal agent
7,308,500
Investment with PARS
46,067,957
Total investments
352,279,319
Total cash and investments
$ 466,145,042
A. Deposits
The carrying amounts of the City's demand deposits were $113,862,730 at June 30, 2022. Bank balances at that
date were $116,127,663 the total amount of which was collateralized or insured with accounts held by the
pledging financial institutions in the City's name as discussed below.
Cash and Investments with PARS related to the City's OPEB Trust are disclosed in Note 14.
The California Government Code requires California banks and savings and loan associations to secure the City's
cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall
have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus,
collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also
allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of
the City's total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are
fully insured up to $250,000 by the Federal Deposit Insurance Corporation ("FDIC"). The City did not waive the
collateral requirement for deposits insured by FDIC.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held
by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments
is allocated on an accounting period basis to the various funds based on the period -end cash and investment
balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
60
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Investments (Continued)
B. Investments
The following table identifies the investment types that are authorized for the City by the California Government
Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the
California Government Code (or the City's investment policy, where more restrictive) that address interest rate
risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held
by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general
provisions of the California Government Code or the City's investment policy:
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
Allowed *
Maximum
Investments in
One Issuer **
Local Agency Bonds
5 years
None
5%
U.S. Treasury Obligations
5 years
None
None
State of California Obligations
5 years
None
5%
California Local Agency Obligations
5 years
None
5%
U.S. Governmental -Sponsored Enterprise securities
5 years
None
None
Supernationals/unsubordinated Obligations
5 years
30%
10%
Banker's Acceptances
180 days
40%
5%
Commercial Paper
270days
25%
5%
Negotiable Certificates of Deposit
5 years
30%
5%
Repurchase Agreements
1 year
None
None
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)
N/A
None
None
Los Angeles County Pooled Investment Fund (LACPIF)
N/A
None
None
Maximum amount
p ermitted per
State of California Local Agency Investment Fund (LAIF)
N/A
None
California State
Treasurer
N/A - Not Applicable
* Excluding amounts held by bond trustees that are 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 funds may have no
more than 10 percent invested in any one mutual fund.
61
$ 73,681,868 $ $ $ 73,681,868
15,054,701 15,054,701
31,659,450 31,659,450
392,557 392,557
1,137,321
13,873,031
32,513,215
47,523,567
-
17,203,500
63,544,977
80,748,477
831,974
733,259
39,684
1,604,917
100,886
633,969
2,030,242
2,765,097
4,918,949
7,695,070
17,697,446
30,311,465
4,972,155
-
1,371,678
6,343,833
-
2,346,879
2,574,612
4,921,491
-
1,310,809
2,584,630
3,895,439
33,817,883
257,826
11,992,248
46,067,957
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Investments (Continued)
C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather
than the general provisions of the California Government Code or the City's investment policy. The table below
identifies the investment types that are authorized for investments held by bond trustees. The table also identifies
certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit
risk.
Maximum
Maximum
Maximum
Percentage
Investments in
Authorized Investment Type
Maturity
Allowed *
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. Risk Disclosures
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. At June 30, 2022, the City had
the following investment maturities:
Remaining Maturity (In Months)
12 Months 13-24 25-60
Investment Type or Less Months Months Total
Local Agency Investment Fund
California Asset Management Program
(CAMP)
Los Angeles County Pooled Investment
Fund (LACPIF)
Money Market Funds
United States Government Sponsored
Enterprise Securities
US Treasury Bills
Collateralized Mortgage Obligation
Asset Backed Securities
Corporate Notes
Negotiable Certificates of Deposit
Municipal Bonds
Supranational Obligations
Investment with PARS
Restricted with Fiscal Agent:
Money Market Funds 7,308,500 - - 7,308,500
Total $ 173,876,244 $ 44,054,343 $ 134,348,732 $ 352,279,319
62
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Investments (Continued)
D. Risk Disclosures (Continued)
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 minimum rating required by (where applicable) the California
Government Code, the City's investment policy, or debt agreements, and the actual rating, by Standard and
Poor's and Moody's at June 30, 2022 for each investment type:
Fair Value
Minimum
Not Required
at
Legal
to be
Investment Type
June 30, 2022
Rating
AAA
Others
Not Rated
Rated
Local Agency Investment Fund
$ 73,681,868
N/A
$
$
$
$ 73,681,868
California Asset Management Program
(CAMP)
15,054,701
N/A
15,054,701
Los Angeles County Pooled Investment
Fund (LACPIF)
31,659,450
N/A
31,659,450
Money Market Funds
392,557
AAA
392,557
-
United States Government Sponsored
Enterprise Securities
47,523,567
N/A
47,523,567
-
US Treasury Bills
80,748,477
N/A
80,748,477
Collateralized Mortgage Obligation
1,604,917
AA
1,604,917
-
Asset Backed Securities
2,765,097
AA-
2,765,097
Corporate Notes
30,311,465
A-
-
30,303,465
8,000
Negotiable Certificates of Deposit
6,343,833
N/A
-
6,343,833
-
Municipal Bonds
4,921,491
A
1,054,867
3,866,624
Supranational Obligations
3,895,439
AA-
3,895,439
-
-
hrvestment with PARS
46,067,957
N/A
3,476,450
4,642,904
37,948,603
Restricted with Fiscal Agent:
-
Money Market Funds
7,308,500
N/A
-
-
-
7,308,500
Total
$ 352,279,319
$ 141,461,371
$ 45,156,826
$ 37,956,603
$127,704,519
N/A - Not Required
* Included in corporate notes is an investment in Lehman Brothers, which is not rated as of June 30, 2022. 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, 2022, this investment is recorded at $8,000.
The actual rating for the "Others" Category above as follows:
Investment Type
Corp orate Notes
Negotiable Certificates of Deposit
Municipal Bonds
Investment with PARS
Total
AA A BBB Total
$ 6,421,228
$ 23,882,237
$ - $ 30,303,465
-
6,343,833
- 6,343,833
3,866,624
-
- 3,866,624
234,906
1,441,368
2,966,630 4,642,904
$10,522,758
$31,667,438
$ 2,966,630 $45,156,826
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. At June 30, 2022, the
following investment represent 5% or more of total City investments:
Issuers Investment Type Amount Percentage
Federal National Mortgage Association US Government Sponsored Enterprise Securities $ 37,025,639 12%
63
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Custodial Credit Risk — The 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 deposits or will not be able to recover
collateral securities that are in the possession of a third parry. The custodial credit risk for investments is the risk
that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the
value of investment or collateral securities that are in the possession of the third parry. At June 30, 2022, none
of the City's deposits or investments were exposed to custodial credit risk.
E. Fair Value Measurement
At June 30, 2022, investments are reported at fair value. The following table presents the fair value measurements
of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value
measurements fall at June 30, 2022:
Measurement Input
Quoted Prices in Active Significant
Market for Identical Other Observable
Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized
Local Agency Investment Fund $ - $ - $ 73,681,868
California Asset Management Program
(CAMP)
Los Angeles County Pooled Investment
Fund (LACPIF)
Money Market Funds
United States Government Sponsored
Enterprise Securities
US Treasury Bills
Collateralized Mortgage obligation
Asset Backed Securities
Corporate Notes
Negotiable Certificates of Deposit
Municipal Bonds
Sup ernational Obligations
Investment with PARS
Restricted with Fiscal Agent:
Money Market Funds
Total
Total
$ 73,681,868
15,054,701
15,054,701
31,659,450
31,659,450
392,557
392,557
- 47,523,567
- 47,523,567
80,748,477 -
- 80,748,477
- 1,604,917
- 1,604,917
2,765,097
- 2,765,097
30,311,465
- 30,311,465
6,343,833
- 6,343,833
- 4,921,491
- 4,921,491
- 3,895,439
- 3,895,439
- 46,067,957
- 46,067,957
- - 7,308,500 7,308,500
$ 80,748,477 $ 143,433,766 $ 128,097,076 $ 352,279,319
Deposits and withdrawals related to the investments in LAIF, LACPIF, CAMP, and money market funds are
valued on amortized cost, which approximates fair value. Accordingly, under the fair value hierarchy these
investments are uncategonzed.
64
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Investments (Continued)
F. Local Agency Investment Fund ("LAIF')
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the
oversight of the Treasurer of the State of California. The City's investments with LAIF at June 30, 2022, 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, 2022, the City had $73,681,868 invested in LAIF, which had invested 1.88% of the pool investment
funds in Structured Notes and Asset -Backed Securities. The fair value of the City's portion in the pool is the
same as the value of the pool shares and is reported at amortized cost. 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.
G. Los Angeles County Pooled Investment Fund
The LACPIF is a pooled investment fund program governed by the Los Angeles County Board of Supervisors
and administered by the Los Angeles County Treasurer and Tax Collector. Investments in the LACPIF are highly
liquid, as deposits and withdrawals can be made at any time without penalty. The LACPIF does not impose any
maximum investment limit. The balance available for withdrawal is based on the accounting records maintained
by the LACPIF, which is reported at amortized cost.
As of June 30, 2022, the City had $31,659,450 invested in the LACPIF.
H. California Asset Management Program
The City is a voluntary participant in a CAMP, a Joint Powers Authority ("JPA") investment pool, 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, 2022, the City had $15,054,701 invested in the CAMP.
Note 3 — Accounts Receivables
Accounts receivable as of June 30, 2022, including allowances for uncollectible accounts, is as follows:
Special Revenue Funds
Nonmajor
Transit
General
Public Landscape
Governmental
Enterprise
Fund
Library Maintenance
Funds
Fund
Gross receivables $ 462,944
$ 35 $ 26,966
$ 336,480
$ 76,295
Less: Allowance of uncollectibles (191,753)
- -
(77,100)
-
Account receivables, net $ 271,191
$ 35 $ 26,966
$ 259,380
$ 76,295
65
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 4 — Loans Receivable
The loans receivable balance in the governmental funds totaled $2,180,069 at June 30, 2022. The majority of the
balance is related to deferred -payment rehabilitation loans to qualified homeowners in connection with Community
Development Block Grant and HOME rehabilitation programs.
Note 5 - Due from Other Government
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, 2022, $7,734,479 of these unallowable
transfers remains due from the City to the Successor Agency Private Purpose Trust Fund.
Note 6 — Notes to RDA Successor Agency
Prior to the dissolution of the former redevelopment agency, the General Fund and Developer Fees Special Revenue
Fund advanced the former redevelopment agency funding for various redevelopment activities. These advances were
made in the form of promissory notes and were transferred to the RDA Successor Agency upon dissolution. During
the fiscal year ended June 30, 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. From the fiscal year ended June 30, 2016 and thereafter, the loan amounts will increase by the 3 percent
interest only. As of June 30, 2022, the loan amounts reported in the General Fund and Developer Fees Special
Revenue Fund was $5,237,565 and $5,319,886, respectively. In addition, the unpaid accrued interests of these notes
are $3,470,860 and $2,069,959, respectively, which are included in the note balance.
Note 7 — Lease Receivables
Lease receivable consists of agreements with other for the right —to —use of the underlying assets for land owned by
the City at various location. The remaining terms of the agreements range from 7 to 20 years. The incremental
borrowing rates used was 0.165%. For the year ended June 30, 2022, the City recognized $271,816 in lease revenue
and $15,691 in lease interest revenue for General Fund. The outstanding lease receivable is in the amount of
$3,958,012 for General Fund.
66
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 7 — Lease Receivable (Continued)
The future receipts for these leases, including interest, are as follows:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 268,267
$ 16,092
$ 284,359
2024
269,324
15,035
284,359
2025
270,386
13,973
284,359
2026
271,452
12,907
284,359
2027
272,524
11,836
284,360
2028-2032
1,181,006
43,712
1,224,718
2033-2037
971,078
20,014
991,092
2038-2042
453,975
4,002
457,977
Total
$ 3,958,012
$ 137,571
$ 4,095,583
Note 8 — Interfund Transactions
A. Due From/To Other Funds
At June 30, 2022, the City had the following due from/to other fiords:
Due from Other fund
Due to Other Funds: General Fund
Nonmajor Governmental Funds $ 4,471,424
The above amounts resulted from temporary reclassifications made at June 30, 2022 to cover cash shortfalls.
B. Advances To/From Other Funds
At June 30, 2022, the City had the following advances:
Advances to Other Funds
Advances from Other Funds General Fund Developer Fees Total
Bridge and Thoroughfare $ 5,989,211 $ 133,442 $ 6,122,653
Bridge and Thoroughfare
In March 2006, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $430,000 for
acquisition of land. The advance accrues interest at a rate equal to the yield of the average monthly investment
portfolio and will be repaid with future available resources of the Bridge and Thoroughfare Special Revenue
Fund. There is no fixed repayment schedule. At June 30, 2022, the amount of the advance outstanding is
$609,569.
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, 2022, the amount of the
advance outstanding is $1,068,701.
67
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 8 — Interfund Transactions (Continued)
B. Advances To/From Other Funds (Continued)
Bridge and Thoroughfare (Continued
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, 2022, the amount of the advance
outstanding is $618,266.
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, 2022, the amount of the advance outstanding is $1,579,853.
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, 2022, the amount of the advance outstanding
is $2,112,822.
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, 2022, the amount of the advance outstanding is $133,442.
Public Library
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. During the year ended June 30, 2022, the
principal amount of the advance was fully paid off.
68
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 8 — Interfund Transactions (Continued)
C. Transfers In/Out
During the year ended June 30, 2022, the City had the following transfers in/out:
Transfers in
Governmental Funds
Enterprise Fund
Landscape
Nonmajor
Transit
General
Maintenance
Governmental
Enterprise
Transfers out
Fund
District #1
Funds
Fund
Total
General Fund $
-
$ 10,000
$ 15,288,008
$
$15,298,008
Developer Fee Fund
131,441
-
-
131,441
Landscape Maintenance District #1 Fund
110,539
17,000
127,539
Nonmajor Governmental Funds
1,528,212
2,275,738
8,336,691
12,140,641
Transit Enterprise Fund
235,184
-
3,689
-
238,873
Total $
2,005,376
$ 10,000
$ 17,584,435
$ 8,336,691
$27,936,502
The General Fund made transfers of $15,288,008 to the nonmajor governmental funds mainly for the following:
• Areawide Special Revenue Fund for $11,222,174 to provide for urban forestry and parks and parks
facilities maintenance
• General Capital Projects funds for capital improvement projects for $959,705
• Public Financing Authority Debt Service Fund for debt service payments for the 2016 Lease Revenue
Bonds, Series A (Golden Valley Road), 2019 Lease Revenue Bonds (Sheriff Station),2020 Lease
Revenue Bonds, Series A (Recreational Facility) and 2020 Lease Revenue Bonds, Series A-T
(Recreational Facility), in the amount of $2,833,440.
The Developer Fees Special Revenue Fund made transfers to the General Fund for administrative costs for
$131,441.
The Landscape Maintenance District #1 Special Revenue Fund, the nonmajor governmental funds and the Transit
Enterprise Fund made transfers to the General Fund for the pension unfunded accrued liability contribution in
the amount of $1,116,878.
The nonmajor governmental funds (Traffic Safety Special Revenue Fund) transferred $500,057 to the General
fund for traffic safety expenditures.
Transfers within the nonmajor governmental funds are mainly for debt service payments for the 2016 Lease
Revenue Refunding Bonds, Series B (OSPD), the 2018 Lease Revenue Bonds, Series A (Streetlights) and 2018
Taxable Lease Revenue Bonds, Series B (Streetlights), in the amount of $1,645,769.
The nonmajor governmental funds (Proposition A and Proposition C Special Revenue Funds) transferred
$8,336,691 to Transit Funds to fund the transit operation.
69
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 9 — Capital Assets
A. Governmental Activities
A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2022 is as
follows:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Site improvements
Building improvements
Equipment
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Site improvements
Building improvements
Equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Lease assets, being amortized:
Intangible asset - right of use
Accumulated amortization
Total lease assets, being amortized, net
Governmental activities capital assets, net
Balance
July 1, 2021 Balance
(As Restated) Transfers Additions Deletions June 30, 2022
$ 263,001,440 $ (24,559,030) $ 24,835,670 $ (4,391,283) $ 258,886,797
134,762,286 (129,246,008) 28,990,005 (680,524) 33,825,759
397,763,726 (153,805,038) 53,825,675 (5,071,807) 292,712,556
51,359,147
18,236,605
6,812,269
(393,916) 76,014,105
72,766,640
132,056,153
3,112,371
207,935,164
16,061,386
383,073
620,278
(1,237,467) 15,827,270
1,055,540,865
3,129,207
17,060,308
- 1,075,730,380
1,195,728,038
153,805,038
27,605,226
(1,631,383) 1,375,506,919
(23,539,872)
(5,049,888)
(28,589,760)
(26,638,645)
(4,118,165)
- (30,756,810)
(10,748,489)
(1,190,955)
792,803 (11,146,641)
(423,517,493)
(21,432,943)
- (444,950,436)
(484,444,499)
(31,791,951)
792,803 (515,443,647)
711,283,539 153,805,038
(4,186,725)
(838,580) 860,063,272
1,202,745 1,202,745
- (332,988) (332,988)
1,202,745 (332,988) 869,757
$ 1,110,250,010 $ $ 49,305,962 $ (5,910,387) $ 1,153,645,585
Depreciation and amortization expense was charged to functions of the governmental activities for the year ended
June 30, 2022 as follows:
General government
$ 1,453,866
Public safety
748,154
Recreation and community service
6,573,669
Neighborhood services
947,684
Public works
575,949
Community development
27,824
Internal service funds depreciation
364,850
Allocated depreciation
10,691,996
Unallocated infrastructure depreciation
21,432,943
Total depreciation expense - governmental activities
$ 32,124,939
70
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 9 — Capital Assets
B. Business -Type Activities
A summary of changes in the capital assets for the business -type activities for the year ended June 30, 2022 is as
follows:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Site improvements
Building improvements
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Site improvements
Building improvements
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Balance
Balance
July 1, 2021
Transfers
Additions
Deletions June 30, 2022
$ 15,087,880
$ -
$ -
$ $ 15,087,880
10,328,640
(4,158,035)
7,950,696
14,121,301
25,416,520
(4,158,035)
7,950,696
29,209,181
12,941,276
-
-
12,941,276
41,656,101
3,945,825
-
45,601,926
65,616,370
212,210
6,082,700
(3,112,561) 68,798,719
120,213,747
4,158,035
6,082,700
(3,112,561) 127,341,921
(5,536,475) (568,220) (6,104,695)
(15,466,011) (980,520) - (16,446,531)
(36,604,271) (4,910,845) 3,112,561 (38,402,555)
(57,606,757) (6,459,585) 3,112,561 (60,953,781)
62,606,990 4,158,035 (376,885) - 66,388,140
$ 88,023,510 $ - $ 7,573,811 $ - $ 95,597,321
Depreciation and amortization expense was charged to functions of the business -type activities for the year ended
June 30, 2022 as follows:
Transit enterprise fund
Note 10 - Deposit Payable
6,459,585
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, 2022, deposits payable were as follows:
General Fund:
Deposits from developers
Other deposits payable
Total deposits payable
$ 2,356,684
oci cnn
$ 3,308,188
71
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11— Long -Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2022 is as
follows:
Balance
July 1, 2021
Balance
Due within
Due in More
(As Restated)
Additions
Deletions
June 30, 2022
One Year
Than One Year
Governmental Activities:
Lease Revenue Bonds
Series 2016A (Golden Valley Road)
$ 8,365,000
$
$ (435,000)
$ 7,930,000
$ 450,000
$ 7,480,000
Series 2016B (OSPD)
12,430,000
(410,000)
12,020,000
445,000
11,575,000
Series 2019 (Sheriff Station)
25,850,000
(505,000)
25,345,000
530,000
24,815,000
Series 2020A (Recreational Facility)
10,645,000
-
10,645,000
-
10,645,000
Series 202OA-T (Recreational Facility)
3,140,000
(350,000)
2,790,000
355,000
2,435,000
Issuance premium and discount
2,984,068
(87,410)
2,896,658
87,410
2,809,248
Subtotal
63,414,068
(1,787,410)
61,626,658
1,867,410
59,759,248
Revenue and Taxable Revenue Bonds
Series 2018A (Streetlights)
11,295,000
11,295,000
-
11,295,000
Series 2018A-T (Streetlights)
2,680,000
-
(310,000)
2,370,000
320,000
2,050,000
Issuance premium and discount
486,752
-
(15,969)
470,783
15,969
454,814
Subtotal
14,461,752
-
(325,969)
14,135,783
335,969
13,799,814
Financed purchase notes payable
159,969
-
(30,692)
129,277
31,901
97,376
Lease payable
1,202,745
-
(322,429)
880,316
335,767
544,549
Total bonds, notes, and lease
payable
79,238,534
-
(2,466,500)
76,772,034
2,571,047
74,200,987
Compensated absences
4,313,253
2,451,884
(2,693,769)
4,071,368
2,693,769
1,377,599
Claims and judgments
6,410,646
2,265,135
(4,030,421)
4,645,360
1,714,712
2,930,648
Total governmental activities
$ 89,962,433
$ 4,717,019
$ (9,190,690)
$ 85,488,762
$ 6,979,528
$ 78,509,234
The City has outstanding bonds and notes from direct borrowings and lease payable related to governmental
activities totaling $75,891,718 and $880,316, 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.
Lease Revenue Bonds, Series 2016 A (Golden Valley Road) and 2016E (OSPD)
In June 2016, the Authority issued Lease Revenue Refunding Bonds, Series 2016A (Golden Valley Road) and
Series 2016B (Open Space Preservation District), 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 balances as of June 30, 2002, were
$7,930,000 for Series 2016A and $12,020,000 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.
72
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11- Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Revenue Bonds, Series 2016 A (Golden Valley Road) and 2016E (OSPD) (Continued)
The future annual debt service requirements for the Lease Revenue Bonds, Series 2016 A are as followed:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 450,000
$ 244,500
$ 694,500
2024
470,000
226,100
696,100
2025
490,000
206,900
696,900
2026
510,000
186,900
696,900
2027
530,000
166,100
696,100
2028-2032
2,850,000
629,175
3,479,175
2033-2036
2,630,000
163,925
2,793,925
Total
$ 7,930,000
$ 1,823,600
$ 9,753,600
The future annual debt service requirements for the Lease Revenue Bonds, Series 2016 B are as followed:
Year Ending
June 30, Principal Interest Total
2023
445,000
358,606
803,606
2024
485,000
340,006
825,006
2025
525,000
319,806
844,806
2026
565,000
298,006
863,006
2027
610,000
274,506
884,506
2028 -2032
3,620,000
1,134,525
4,754,525
2033-2037
4,675,000
564,516
5,239,516
2038
1,095,000
16,425
1,111,425
Total
$12,020,000
$ 3,306,396
$ 15,326,396
73
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11— Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Revenue Bonds, Series 2019 (Sheri Station)
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, 2022, was $25,345,000.
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 future annual debt service requirements for the Lease Revenue Bonds, Series 2019, are as followed:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 530,000
$ 899,313
$ 1,429,313
2024
555,000
872,813
1,427,813
2025
585,000
845,063
1,430,063
2026
610,000
815,813
1,425,813
2027
645,000
785,313
1,430,313
2028 -2032
3,710,000
3,433,213
7,143,213
2033-2037
4,520,000
2,615,463
7,135,463
2038-2042
5,305,000
1,836,563
7,141,563
2043-2047
6,155,000
991,313
7,146,313
2048-2049
2,730,000
128,594
2,858,594
Total
$ 25,345,000
$ 13,223,461
$ 38,568,461
74
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11- Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Revenue and Taxable Revenue Bonds, Series 2020A and 202OA-T (Recreational Facility
In October 2020, the Santa Clarita Public Financing Authority issued Lease Revenue Bonds Series 2020A and
Taxable Lease Revenue Bonds Series 202OA-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 I and June I 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, 2022, was $13,435,000. 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 future annual debt service requirements for the Lease Revenue Bonds, Series 2020A are listed below:
Year Ending
June 30,
Principal
Interest
Total
2023
$ -
$ 312,206
$ 312,206
2024
-
312,206
312,206
2025
-
312,206
312,206
2026
-
312,206
312,206
2027
-
312,206
312,206
2028 -2032
980,000
1,535,831
2,515,831
2033-2037
2,225,000
1,316,531
3,541,531
2038-2042
2,485,000
1,051,819
3,536,819
2043-2047
2,940,000
599,175
3,539,175
2048-2050
2,015,000
111,788
2,126,788
Total
$ 10,645,000
$ 6,176,174
$ 16,821,174
The future annual debt service requirements for the Taxable Revenue Bonds, Series 2020A-T are as followed:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 355,000
$ 42,382
$ 397,382
2024
355,000
39,578
394,578
2025
360,000
36,113
396,113
2026
365,000
31,879
396,879
2027
370,000
26,452
396,452
2028 -2030
985,000
37,919
1,022,919
Total
$ 2,790,000
$ 214,323
$ 3,004,323
75
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11- Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Revenue and Tax Revenue Bonds, Series 2018 A and 2018E (Streetli ht�quisition 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, 2022, 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, 2022, was $2,370,000. 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 future annual debt service requirements for the Revenue Bonds, Series 2018A are as followed:
Year Ending
June 30,
Principal
Interest
Total
2023
$ -
$ 465,394
$ 465,394
2024
-
465,394
465,394
2025
-
465,394
465,394
2026
-
465,394
465,394
2027
-
465,394
465,394
2028 -2032
1,380,000
2,220,219
3,600,219
2033-2037
2,460,000
1,833,759
4,293,759
2038-2042
2,935,000
1,334,938
4,269,938
2043-2047
3,685,000
562,425
4,247,425
2048
835,000
16,700
851,700
Total
$ 11,295,000
$ 8,295,011
$ 19,590,011
The future annual debt service requirements for the 2018 Taxable Revenue Bonds Series B are as follows:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 320,000
S 75,219
$ 395,219
2024
330,000
65,263
395,263
2025
340,000
54,581
394,581
2026
350,000
43,150
393,150
2027
365,000
30,856
395,856
2028 -2029
665,000
23,109
688,109
Total
$ 2,370,000
$ 292,178
$ 2,662,178
76
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11- Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Finance Purchase Notes Payable
On April 27, 2021, the City Council approved a finance -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
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 future annual debt service requirements are as follows:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 31,901
$ 4,441
$ 36,342
2024
33,158
3,184
36,342
2025
34,464
1,878
36,342
2026
29,754
531
30,285
Total
$ 129,277
$ 10,034
$ 139,311
Lease Payable
On June 11, 2019, the City Council approved a lease 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.
On June 27, 2019, the City entered into lease agreement with Crown Castle Fiber, LLC for lease of dark fiber.
The agreement ends on June 26, 2025. The agreement has monthly payments of $5,750 with interest rate of
0.165 percent.
The Television Authority has entered into a lease for office space that commenced in September 2016 and expires
on September 30, 2023. The term of the agreements is for 84 months. The interest rate used is 0.165 percent.
Lastly, the City entered into an office building lease for the property known as the MAIN, in December 23, 2020
that expires on December 31, 2026. The agreement has monthly payments of $6,400 with interest rate of 0.165
percent.
The future annual lease payments are as follows:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 335,767
$ 1,792
$ 337,559
2024
284,315
1,029
285,344
2025
145,293
507
145,800
2026
76,573
227
76,800
2027
38,368
32
38,400
Total
$ 880,316
$ 3,587
$ 883,903
Compensated Absences
The balance at June 30, 2022, was $4,071,368. The General Fund are used to liquidate the compensated absences
for governmental activities.
77
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11— Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Claims and Judi
The balance at June 30, 2022, was $4,645,360. See Note 12 for more details.
B. Business -Type Activities
Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year
Business -type activities
Compensated absences $ 141,669 $ 57,022 $ (55,926) $ 142,765 $ 55,926 $ 86,839
The Transit Enterprise Fund are used to liquidate the compensated absences for business -type activities.
C. Fiduciary Funds
The following Successor Agency long-term obligations were approved by California State Department of Finance
as enforceable obligations and were considered as accounting liabilities in accordance with GAAP.
Fiduciary Activities:
RDA Successor Agency:
Loans from the City of Santa Clarita
Tax Allocation Bonds:
Refunding Series 2017
Unamortized Bond discounts
Total fiduciary activities
Balance
Balance Due within Due in More
July 1, 2021
Additions
Deletions
June 30, 2022 One Year
Than One Year
$16,144,988
$ 316,724
$ (363,442)
$16,098,270 $
$16,098,270
31,510,000
713,227
(895,000) 30,615,000 935,000 29,680,000
(33,660) 679,567 33,660 645,907
$ 48,368,215 $ 316,724 $ (1,292,102) $ 47,392,837 $ 968,660 $ 46,424,177
The Successor Agency's outstanding bonds from public offerings of $47,392,837 contain a provision that if any
event of default should occur, the trustee shall at the written direction of the Bond Owners of a majority in
aggregate principal amount outstanding, and upon receipt of the prior written consent of the Bond Insurer, declare
the principal of all of the bonds then outstanding, and the interest accrued thereon, to be due and payable
immediately.
Loans from the City ofSanta Clarity
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 $8,708,425 and $7,389,845, respectively, which include
unpaid accrued interest of $3,470,860 and $2,069,959, respectively.
78
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11— Long -Term Liabilities (Continued)
C. Fiduciary Funds (Continued)
Tax Allocation Bond Refunding Series 2017
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 $2,001,828 as of June 30, 2022. 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, 2022, was $30,615,000.
Tax revenues deposited to the Redevelopment Property Tax Trust Fund maintained by the County of Los
Angeles, less (1) 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.
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.
79
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11— Long -Term Liabilities (Continued)
C. Fiduciary Funds (Continued)
Tax Allocation Bond Refunding Series 2017 (Continued)
The annual debt service requirements for the Tax Allocation Bond Refunding Series 2017 are presented below:
Year Ending
June 30,
Principal
Interest
Total
2023
$ 935,000
$ 1,198,669
$ 2,133,669
2024
985,000
1,150,669
2,135,669
2025
1,030,000
1,100,294
2,130,294
2026
1,090,000
1,047,294
2,137,294
2027
1,140,000
991,544
2,131,544
2028 -2032
6,430,000
4,267,531
10,697,531
2033-2037
7,680,000
2,975,472
10,655,472
2038-2042
9,250,000
1,365,450
10,615,450
2043
2,075,000
41,500
2,116,500
Total
$ 30,615,000
$14,138,423
$ 44,753,423
D. Non -City Obligations
1915 Act Limited Obligation Improvements Bonds Golden Valle
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, 2022 was $115,000.
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, 2022 was $300,000.
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, 2022 was $12,170,000.
80
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 11— Long -Term Liabilities (Continued)
D. Non -City Obligation (Continued)
Community Facilities District No. 2016-1 Vista Canes
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, 2022 was $17,130,000.
Note 12 — Risk Management
A. Special Districts Risk Management Authority ("SDRMA')
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 2005. SDRMA is a self-insurance risk pool that serves as a not -for -profit public agency
to its members. Through SDRMA, the City held various deductibles from 2005 through 2021. Beginning in
fiscal year 2019-2020, the City held a $50,000 general liability deductible. All general liability claims above the
City's deductible are handled by SDRMA's $10,000,000 liability limit. Additionally, the City carries a
$15,000,000 excess liability policy to cover any losses over the $10,000,000 SDRMA limit. The City's workers'
compensation coverage was also administered by SDRMA. The City was self -insured for workers' compensation
up to $250,000, but 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.
B. California Joint Powers Insurance Authority ("CJPIA')
The City joined California Joint Powers Insurance Authority ("CJPIA") during the year ended June 30, 2022.
CJPIA is a self-insurance risk pool that serves its members. Claims incurred prior to joining CJPIA continue to
be administered by SDRMA.
Description of Self -Insurance Pool Pursuant to Joint Powers Agreement
CJPIA is composed of 124 California public entities and is organized under a joint powers agreement pursuant
to California Government Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs
for the pooling of self -insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. CJPIA began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of Directors. The
Board operates through a nine -member Executive Committee.
Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement
for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies
based on payroll and claims history, relative to other members of the risk -sharing pool.
81
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 12 — Risk Management (Continued)
B. California Joint Powers Insurance Authority ("CJPIA') (Continued)
Primary Self -Insurance Programs of the CJPIA
Primary Liability Program - Claims are made up of general government exposures. (1) The payroll of each
member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each
member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2)
The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred
costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred
costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the
outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per
occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed
of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning
the coverage structure is available on CJPIA's website: https://cjpia.org/coverage/risk-sharing-pools/.
Primary Workers' Compensation Program — Claims are made up of general government exposures. (1) The
payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is
evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the
pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2021-22 the CJPIA's pooled retention is $1 million per occurrence, with reinsurance to statutory limits under
California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1
million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's
Liability losses from $5 million to $10 million are pooled among members.
Purchased Insurance
Pollution Legal Liability Insurance — The City participates in the pollution legal liability insurance program
which is available through CJPIA. The policy covers sudden and gradual pollution of scheduled property, streets,
and storm drains owned by the City. Coverage is on a claims -made basis. There is a $250,000 deductible. CJPIA
has an aggregate limit of $20 million.
Property Insurance — The City participates in the all-risk property protection program of CJPIA. This insurance
protection is underwritten by several insurance companies. City property is currently insured according to a
schedule of covered property submitted by the City to CJPIA. City property currently has all-risk property
insurance protection in the amount of $500,000,000. There is a $10,000 deductible per occurrence except for
non -emergency vehicle insurance which has a $2,500 deductible.
Crime Insurance — The City purchases crime insurance coverage in the amount of $3,000,000 with a $2,500
deductible. The fidelity coverage is provided through CJPIA.
82
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 12 — Risk Management (Continued)
B. California Joint Powers Insurance Authority ("CJPIA') (Continued)
Adeyuacv of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or
insured liability coverage in 2021-22.
C. Claims and Judgments Payable
The following table presents claims and judgments payable administered by both SDRMA and CJPIA for the
year ended June 30, 2022, and its two preceding years:
Current Year
Current Year
Balance at
Claims and Changes
Claim
Balance at
Year Ended
July 1
in Estimates
Payments
June 30
June 30, 2020
$ 3,654,276
$ 1,982,098 $
(735,265)
$ 4,901,109
June 30, 2021
4,901,109
2,751,537
(1,242,000)
6,410,646
June 30, 2022
6,410,646
2,265,135
(4,030,421)
4,645,360
Note 13 — Pension Plan
A. General Information about the Pension Plan
Plan Description
The City contribution to the California Public Employees Retirement System ("Ca1PERS"), an agent multiple -
employer defined benefit pension plan for all permanent full-time general and some part-time employees of the
City. Ca1PERS acts as a common investment and administrative agent for participating public entities within the
State of California. Benefit provisions and all other requirements are established by state statue and City
ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions,
assumptions (for funding, but not accounting purposes), and membership information are listed in the
June 30, 2020 Annual Actuarial Valuation Report. This report and Ca1PERS' audited financial statements are
publicly available reports that can be obtained at Ca1PERS' website under Forms and Publications.
Benefit Provided
Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. Benefit provisions under both plans are established by State Statute and City
Resolution as follows:
83
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 13 — Pension Plan (Continued)
A. Generallnformation about the Pension Plan (Continued)
Benefit Provided
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Required employee contribution rates
Required employer contribution
during measurement period
Applies to:
M iscellaneous
Tier 1 Tier 2 Tier 3
2.7% (a,) 55
2% (.) 60
5 years of service
5 years of service
Monthly for life
Monthly for life
50-55
50-60
8.000%
7.000%
9.040%
9.040%
Employees
Employees hired
hired before
between April 9, 2011
April 9, 2011 *
and December 31, 2012
or those hired January 1,
2013, or later, who have
been a classic CaIPERS
member with a public
agency or in a classify
reciprocal plan within
the last 6 months*
2% (.) 62
5 years of service
Monthly for life
52-62
6.250%
9.040%
Employees hired
January 1,2013 or
later *
*'Those hired as part seasonal (PTS) who later convert to regular full time will quality for Tier 1, 2, or 3 depending on the
conversion date and status when hired
Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to
plan members and beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced
benefits (total service across all Ca1PERS employers, and with certain other Retirement Systems with which
Ca1PERS has reciprocity agreements). All members are eligible for non -duty disability benefits after 5 years of
service. The death benefit is one of the following: Basic Death Benefit, the 1957 Survivor Benefit, or the Optional
Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public
Employees' Retirement Law.
Employees Covered by Benefit Terms
At June 30, 2020, the valuation date, the following employees were covered by the benefit terms:
Active employees 443
Transferred and terminated employees 464
Retired Employees and Beneficiaries 253
Total 1,160
84
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 13 — Pension Plan (Continued)
A. Generallnforsnation about the Pension Plan (Continued)
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
Ca1PERS' 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. The employer contributions made during the year ended
June 30, 2022 were in the amount of $8,462,978.
B. Net Pension Liability
Actuarial Methods and Assumption Used to Determine Total Pension Liability
The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on
following actuarial methods and assumptions:
Valuation Date
Measurement Date
Measurement Period
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
Mortality Rate Table(i)
June 30, 2020
June 30, 2021
July 1, 2020 to June 30, 2021
Entry Age Normal
7.15%
2.500%
Varies by Entry Age and Service
2.750%
7% net of pension plan investment and administrative expense;
includes inflation.
The probabilities of Retirement are based on the 2017 CalPERS
Experience Study for the period from 1997 to 2015.
Derived using CaIPERS' Membership Data for all Funds.
(')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.
Change o Assumptions
In 2021, there were no changes of assumptions.
Long-term Expected Rate ofReturn
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class.
85
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 13 — Pension Plan (Continued)
B. Net Pension Liability (Continued)
Long-term Expected Rate ofReturn (Continued)
In determining the long-term expected rate of return, Ca1PERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the
funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years)
and the long-term (I I+ 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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed
administrative expenses.
The expected real rates of return by asset class are as followed:
Assumed Asset Real Return Real Return
Asset Class(i) Allocation Years 1 - 102 Years 11+3
Global Equity
50.00%
4.80%
5.98%
Fixed Income
28.00%
1.00%
2.62%
Inflation Assets
0.00%
0.77%
1.81%
Private Equity
8.00%
6.30%
7.23%
Real Assets
13.00%
3.75%
4.93%
Liquidity
1.00%
0.00%
-0.92%
100.00%
1 In the Ca1PERS'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 2.00% used
'An expected inflation rate of 2.92% used
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current member
contribution rates and that contributions from employers will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the 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.
86
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 13 — Pension Plan (Continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City's Miscellaneous Plan recognized over
the measurement period:
Balance at June 30, 2020 (Valuation Date)
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total pension liability
Changes of benefit terms
Changes of assumptions
Difference between expected and actual experience
Net plan to plan resource movement
Contributions from the employer
Contributions from employees
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative Expense
Other
Net Changes during July 1, 2020 to June 30, 2021
Balance at June 30, 2021 (Measurement Date)
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability/(Asset)
(c) _ (a) - (b)
$ 226,954,635
$ 192,216,858
$ 34,737,777
5,527,979
-
5,527,979
16,234,316
-
16,234,316
1,168,851
1,168,851
11,219,959
(11,219,959)
2,551,579
(2,551,579)
44,522,336
(44,522,336)
(7,668,205) (7,668,205) -
(192,013) 192,013
15,262,941 50,433,656 (35,170,715)
$ 242,217,576 $ 242,650,514 $ (432,938)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the plans as of the measurement date, calculated using the
discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount
rate that is 1 percentage -point lower (6.15%) or 1 percentage -point higher (8.15%) than the current rate:
Plan's Net Pension Liability/(Asset)
Discount Fate Current Discount Discount Rate
- 1%(6.15%) Rate (7.15%) + 1%(8.15%)
$ 35,982,649 $ (432,938) $ (30,177,810)
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued Ca1PERS
financial report.
87
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 13 — Pension Plan (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense in the amounts of $742,667 for the
miscellaneous plan.
As of measurement date of June 30, 2021, the City has deferred outflows and deferred inflows of resources related
to pensions as follows:
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after measurement period $ 8,462,978 $ -
Changes of assumptions - (112,739)
Difference between expected and actual experience 3,340,074 Net difference between projected and actual earning
on pension plan investments - (22,182,952)
Total
$ 11,803,052 $ (22,295,691)
The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.
The expected average remaining service lifetime (" EARSU) is calculated by dividing the total future service
years by the total number of plan participants (active, inactive, and retired). The EARSL for the 2020-21
measurement period is 4.3 years, which was obtained by dividing the total service years of 5,006 (the sum of
remaining service lifetimes of the active employees) by 1,160 (the total number of participants: active, inactive,
and retired), respectively.
The $8,462,978 reported as deferred outflows of resources related to pensions, resulting from the City's
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability
and collectively net pension liability, respectively, in the year ending June 30, 2023.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in the future pension expense as follows:
Measurement Period Deferred Outflows/
Ending June 30, (Inflows) of Resources
2022
$ (4,000,404)
2023
(4,053,386)
2024
(4,868,415)
2025
(6,033,412)
Total
$ (18,955,617)
88
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 14 — Other Postemployment Benefits ("OPEB")
A. General Information about the OPEB Plan
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 postemployment medical insurance benefits through the
Ca1PERS 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.
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.
Eli ibiliU and Membership Covered by Benefit Terms
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:
Year of service Vested Percentage
0 to 5 years 0%
5 to 9 years 50%
10 to 14 years 75%
15 years and greater 100%
Employees hired after January 1, 2008, receive the Ca1PERS minimum benefits and are not subjected to the
vesting schedule above.
At June 30, 2022 measurement date, the following numbers of participants were covered by the benefit terms:
Active plan members 435
Inactive plan members currently receiving benefits 145
Inactive plan members entitled to but not receiving benefits 35
Total 615
89
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 14 — Other Postemployment Benefits ("OPEB") (Continued)
A. Generallnformation about the OPEB Plan (Continued)
('nntrihvtinm
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
OPEB Plan Trust 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 actuarial determined contribution
for fiscal year 2022 was negative $344,000, and no cash contribution was made. In addition, the City received a
credit in the amount of $301,000 relating to implied subsidy benefit payment which has been included in the
contributions to the OPEB Plan Trust.
The total cash benefits paid directly by the OPEB Plan Trust to the recipients was in the amount of $1,025,369.
Additional $301,000 implied subsidy benefits were reported, which resulted in reporting total benefit payments
to plan participants in the amount of $1,326,369.
B. Net OPEB Liability
The OPEB liability was measured as of June 30, 2022, and total liability used to calculate the net OPEB liability
was determined by an actuarial valuation as of June 30, 2022.
Significant Actuarial Assumptions Used for Total OPEB Liability
The total OPEB liability, measured as of June 30, 2022, was determined using the following actuarial
assumptions:
Actuarial Valuation Date
Contribution Policy
Discount Rate and Long -Tenn Expected Rate of
Return
Inflation
Mortality, Retirement, Disability, Termination
Mortality Improvement
Salary Increases
Medical Trend
PEMHCA Minimum Increases
Participation at Retirement
Waived Retirees Reelection
Cap Increase
June 30, 2020
Pre -fund cash benefit ADC with PARS Balanced Fund
Implied subsidy benefit on pay-as-you-go basis
6.25% at June 30, 2022 and June 30, 2021
Expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
2.75% annually
CalPERS 1997-2015 Experience Study
Post -retirement mortality projected fully generational with Scale
MP-2019
Aggregate - 3% annually
Merit - CalPERS 1997-2015 Experience Study
Non -Medicare - 7% for 2022, decreasing to an ultimate rate of 4%
in 2076; Medicare - 6.1% for 2022, decreasing to an ultimate rate
of 4.0% in 2076
4.25% annually
Hired < 1/1/08 - 95%
Hired > 1/l/08 - 60%
5%re-elect at 65 forpre-65
No increase in $1,016.58 cap; Medical trend for EE+1 cap
90
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 14 — Other Postemployment Benefits ("OPEB") (Continued)
B. Net OPEB Liability (Continued)
Change in assumptions
In 2022, there were no changes in assumptions.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to
determine the discount rate assumed that City contributions will be made at rates equal to the actuarially
determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected
to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected
benefit payments to determine the total OPEB liability.
Expected Long -Term Rates of Return
Asset Class Target Allocation Expected Real
Global Equity
58.00%
4.82%
Fixed Income
35.00%
1.47%
Cash
2.00%
3.76%
REITS
5.00%
0.06%
100.00%
Assumed Long -Term Rate of Inflation
2.75%
Expected Long -Term Net Rate of Return, Rounded
6.25%
C. Change in Net OPEB Liability
The following presents the changes in the net OPEB liability for the governmental activities' Retiree Health Plan:
Balance at June 30, 2021
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total OPEB liability
Expected investment income
Employer cash contribution
Employer implied subsidy contribution
Administrative Expenses
Benefit payments, including implied subsidy payments
Assumption changes
Plan experience
Investment experience
Net Changes during July 1, 2021 to June 30, 2022
Balance at June 30, 2022 (Measurement Date)
Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/ (Asset)
(a) (b) (c) = (a) - (b)
$ 39,707,814 $ 52,283,593 $ (12,575,779)
1,100,210
-
1,100,210
2,509,052
-
2,509,052
-
(7,090,104)
7,090,104
-
301,000
(301,000)
-
(105,845)
105,845
(1,326,369)
(1,326,369)
-
2,282,893
(8,221,318)
10,504,211
$ 41,990,707 $
44,062,275 $
(2,071,568)
91
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 14 — Other Postemployment Benefits ("OPEB") (Continued)
C. Change in Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Change in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would
be if it were calculated using a discount rate that is 1-percentage-point lower (5.25 percent) or 1-percentage- point
higher (7.25 percent) than the current discount rate:
Plan's Net OPEB Liability / (Asset)
Discount Rate Current Discount Discount Rate
-1%(5.25%) Rate (6.25%) +1 %(7.25%)
$ 4,176,314 $ (2,071,568) $ (7,170,527)
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would
be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point
higher than the current healthcare cost trend rates:
Plan's Net OPEB Liability / (Asset)
Healthcare Cost Healthcare Cost Healthcare Cost
Trend Rate - 1% Trend Rate Trend Rate + 1%
$ (8,369,094) $ (2,071,568) $ 5,839,915
OPEB Expense and Deferred Outflows ofResources and Deferred Inflows ofResources Related to OPEB
For the measurement period ended June 30, 2022, the City recognized OPEB credit in the amount of $1,204,559.
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred outflows Deferred inflows
of Resources of Resources
Changes in assumptions $ 6,806,104 $ (13,763,555)
Difference between expected and actual experience - (8,350,694)
Net difference between projected and actual earning on
OPEB plan investments 3,848,286
Total $ 10,654,390 $ (22,114,249)
Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as
expense as follows:
Measurement Period
Ending June 30,
Deferred
Outflows/(Inflows)
of Resources
2023
$ (1,563,934)
2024
(1,545,154)
2025
(1,783,754)
2026
(27,552)
2027
(2,091,916)
Thereafter
(4,447, 549)
Total
$ (11,459,859)
92
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 14 — Other Postemployment Benefits ("OPEB") (Continued)
A Cash and Investment 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. Fees incurred by the
Plan for the investment management services are included in fair value of the investment, as they are paid through
revenue sharing, rather than a direct payment.
The parameters for fixed income and equity securities based on asset allocation are as follows:
Authorized Investment Type
Fixed Income
Longterm 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
Maximum Percentage of Minimum Percentage of
Total Plan Assets Total Plan Assets
20%
0%
50%
15%
15%
0%
8%
0%
50%
20%
15%
0%
20%
0%
20%
0%
10%
0%
Cash and investments related to the Plan consist of the following:
Assets
Cash and Equivalents
U.S. Government Issues
Corporate Issues
Foreign Issues
Municip al Issues
Domestic Common Stocks
Foreign Stocks
Mutual Funds - Equity
Mutual Finds - Fixed Income
Total Assets
Fair Value
$ 2,764,186
6,214,981
5,583,690
151,058
375,645
4,803,555
116,471
20,306,179
3,662,838
43,978,603
Accrued Income 83,672
Total $ 44,062,275
E. 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
Investment Type
Amount Investments
Dodge and Cox Stock Fund
Mutual Funds - Equity
$ 2,349,348 5%
Ishares Russel Mid Cap
Mutual Funds - Equity
2,533,802 6%
Vanguard Growth and Income
Mutual Funds - Equity
2,631,046 6%
93
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
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, 2022, there were 1595 participants in the plans. The employer and
employee contributions were in the amounts of $227,263 and $2,636,986, respectively.
Note 16 — 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, 2022, the City accrued a liability of $49,835,534 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.
Bridge and Throughfare Credits:
Bouquet District
Eastside District
Via Princessa District
Valenica District
Balance
July 1, 2021 Additions
$ 21,955,779 $
11,927,888
6,180,731
15,571,175
Balance
Deletions June 30, 2022
- $ - $ 21,955,779
- 11,927,888
(5,800,039) 380,692
- - 15,571,175
Total Bridge and Thoroughfare Credits $ 55,635,573 $ - $ (5,800,039) $ 49,835,534
Note 17 — Net Investment in Capital Assets
The net investment in capital assets for the governmental activities, and business -type activities is calculated as
follows:
Total capital assets, net
Deferred charges for capital related debt
Capital related debt
Unspent debt proceed
Net investment in capital assets
Governmental Business -Type
Activities Activities
$1,153,645,585 $ 95,597,321
1,339,105
(76,772,034)
2,649,525
$1,080,862,181 $ 95,597,321
94
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 18 — Classification of Fund Balances
At June 30, 2022, fund balances are classified in the governmental funds as follows:
Major Governmental funds
Landscape Nonmajor Total
General Bridge and Developer Public Maintenance Governmental Governmental
Fund Thorou-ahfare Fee Library District #1 Funds Funds
Nonspendable:
Prepaid items
$ 272,875
$ $
$ 135,639 $ 135,149
74,081
$ 617,744
Deposits
60,000
- -
-
60,000
Notes to RDA
Successor Agency
8,708,425
8,708,425
Advances to other funds
5,989,211
5,989,211
Total nonspendable
15,030,511
135,639 135,149
74,081
15,375,380
Restricted:
Landscape maintenance
-
- 23,060,804
5,242,887
28,303,691
Lighting District
-
15,028,274
15,028,274
Capital improvements
8,019,829 3,138,144
6,321,435
17,479,408
Transportation
- -
43,682,194
43,682,194
Open space preservation
-
7,126,193
7,126,193
Public safety
486,791
-
345,312
832,103
Public Library
-
3,372,544
3,986,918
7,359,462
Air quality improvement
4,362
-
285,522
289,884
Stormwater
-
3,957,777
3,957,777
Public education and
government
803,812
803,812
Tourism marketing
-
895,514
895,514
Low and moderate income
housing
294,774
4,858,703
5,153,477
Clean safe water
-
-
5,513,314
5,513,314
Bond proceeds
2,650,251
-
2,650,251
Pensions
2,005,688
-
-
2,005,688
Other
-
- 7,523,287
-
3,511,854
11,035,141
Total restricted
4,655,939
8,019,829 11,447,358
3,372,544 23,060,804
101,559,709
152,116,183
Committed:
Capital improvement
-
- 783
- -
-
783
Total committed
-
783
-
783
Assigned:
Encumbrances
3,072,997
3,072,997
Capital projects
-
39,017
1,042,522
1,081,539
Claims and settlements
-
-
10
10
Public facilities
143,849,009
-
-
143,849,009
Total assigned
146,922,006
39,017
1,042,532
148,003,555
Unassigned
62,141,362
- -
- -
(1,820,510)
60,320,852
Total Fund Balance
$ 228,749,818
$ 8,019,829 $ 11,487,158
$ 3,508,183 $ 23,195,953
$ 100,855,812
$ 375,816,753
95
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 19 — 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, 2022, 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 20 — Commitments and Contingencies
A. Project Commitments
The City has active projects as of June 30, 2022. At year-end, the City's commitments with contractors for these
projects are as follows:
Projects
Commitments
Arts
$ 30,000
Beautification
7,888
Circulation
863,751
Facilities & Buildings
1,212,844
Maintenance
23,667,841
Parks & Recreation
1,780,706
Resource & Conservation
493,277
Street & Bridges
3,981,443
Trails & Transit
10,505,510
$ 42,543,260
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, 2022, as follows:
Amount
General Fund $ 3,072,997
Other governmental Funds 38,504,941
96
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 20 — Commitments and Contingencies (Continued)
C. Contingencies
The City has received Federal and State 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.
RFI-Bermite Lawsuit
A lawsuit (the "RFI-Bermite Lawsuit") seeking damages of at least $750 million was brought against the City in
July of 2021, by Remediation Financial, Inc. ("RFI") and Bermite Recovery, LLC ("Bermite," and together with
RFI, "Plaintiffs"). The lawsuit alleges that the City interfered with the Plaintiffs' ability to develop a 996-acre
area of undeveloped property located in the City, commonly referred to as the "Whittaker-Bermite Site." The
Plaintiffs allege that the City unlawfully interfered with their development efforts and prevented the Plaintiffs
from obtaining the financing and/or development partners they needed to develop the Whittaker-Bermite Site,
resulting in lost profits to the Plaintiffs. On August 8, 2022, the City filed a motion to strike Plaintiffs' state law
claims based on California's Anti-SLAPP Statute, and a separate motion to dismiss the complaint on various
grounds, including state -law immunities, lack of standing, and other grounds.
The City's insurance provider, SDRMA, is providing defense and indemnification under a reservation of rights.
The City has $25 million in coverage, of which $10 million is covered by SDRMA and $15 million excess
insurance is covered by Evanston Insurance. The City believes the RFI-Bermite Lawsuit is without merit and
intends to vigorously defend itself against all claims alleged by the Plaintiffs; however, depending on the dollar
amount of the final judgment, potential attorneys' fees, and the amount of the damages and attorneys' fees
covered by the City's insurance policies, a judgment in favor of the Plaintiffs could have a material adverse
impact on the City's finances. The City expects to manage payment of any judgment in the RFI-Bermite Lawsuit
in a way that would enable the City to pay its obligations when due. As of the financial statement issuance date,
the outcome of the lawsuit cannot be reasonably estimated.
Note 21— Other Required Disclosure
A. Expenditures in Excess of Appropriation
The following functions report expenditures in excess of appropriations for the year ended June 30, 2022.
Expenditure
in Excess of
Expenditure
Appropriation
Appropriation
State Park Special Revenue Fund:
Operating.
Personnel
$ 6,630
$ -
$ (6,630)
Supplemental Law Grant Special Revenue Fund:
Operating.
Operations and maintenance
496,404
493,957
(2,447)
Measure W Safe Clean Water Special Revenue Fund:
Operating:
Personnel
140,379
137,032
(3,347)
Tourism Marketing District Special Revenue Fund:
Operating:
Personnel
45,472
33,433
(12,039)
97
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 21— Other Required Disclosure (Continued)
B. Deficit Net Positions and Fund Balances
Funds with deficit fund balances and net position at June 30, 2022 are as follows:
Deficit
Gas Tax Special Revenue Fund
$ (204,783)
State Park Special Revenue Fund
(250,000)
Surface Transportation Program Special Revenue Fund
(10,900)
Measure H Homeless Initiatives Special Revenue Fund
(228,322)
Measure R highway improvement Special Revenue Fund
(94,402)
Measure M ATP Special Revenue Fund
(474,809)
Measure A Safe parks Special Revenue Fund
(1,474)
Misc Grants Special Revenue Fund
(441,547)
Cooper St parking CFD 2020-1 Special Revenue Fund
(101,501)
The deficit fund balances will be eliminated through reimbursement from grantor agencies or when the levied
tax revenues are received.
Note 22 — Restatement of Beginning Net Position and Fund Balance
Governmental Activities and Governmental Funds
The beginning net position for governmental activities and fund balances for governmental funds were restated as
follows:
Governmental
Activities
Net Position, as previously reported
$1,306,707,385
Unearned revenue
(15,078,113)
Television Authority
17,398
Finance purchase notes payable
382,125
Net Position, as restated
$1,292,028,795
Nonmajor Governmental Funds
Developer Fees
CDBG
HOME
Total Nonmajor
Total
General
Special Revenue
Special Revenue
Special Revenue
Governmental
Governmental
Fund
Fund
Fund
Fund
Funds
Funds
Fund Balances, as previously
$ 187,994,139
$ 2,436,323
$ 10,852
$ 358,557
$ 89,322,725
$ 311,986,268
reported:
Unavailable revenue
9,623,485
7,361,943
104,175
2,298,999
2,403,174
19,388,602
Television Authority
-
-
-
-
17,398
17,398
Fund Balances, as restated
$ 197,617,624
$ 9,798,266
$ 115,027
$ 2,657,556
$ 91,743,297
$ 331,392,268
Governmental activities beginning net position was restated to report unearned revenue for advance grant funds
received prior to meeting eligibility requirement.
Governmental activities beginning net position and nonmajor governmental fund balance were restated to report the
Santa Clarita Public Television Authority as special revenue fund, instead of custodial fund.
98
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 22 — Restatement of Beginning Net Position and Fund Balance (Continued)
Governmental Activities and Governmental Funds (Continued)
Governmental activities beginning net position was restated as result of implementing GASB Statement No. 87.
Governmental fund beginning fund balances were restated to reduce the unavailable revenues for advances to RDA
Successor Agency, B&T loans, HOME and CDBG loans and the associated accrued interest, and to report these
balances in the nonspendable fund balance for General Fund and restricted fund balances for all other governmental
funds.
Fiduciary Activities
The beginning fiduciary net position for Custodial funds were restated as follows:
Custodial Funds
Community
Community
Assessment
Assessment
Facilities
Facilities
Total
District
District
District
District
Custodial
No.92-2
No.99-1
No.2002-1
No.2016-1
Funds
Fiduciary Net Position, as previously reported
$ 144,302
$ (129,715)
$ (10,079,890)
$ (17,564,057)
$ (27,595,273)
Bond and premium payable
155,000
315,000
12,835,000
19,147,785
32,452,785
Television Authority
-
-
-
-
(17,398)
Fiduciary Net Position, as restated
$ 299,302
$ 185,285
$ 2,755,110
$ 1,583,728
$ 4,840,114
Custodial funds' beginning net position were restated to eliminate the reporting of bonds payable and related premium
for the non -City obligation bonds and to report the Santa Clarita Public Television Authority as a special revenue
fund, instead of a custodial fund.
Note 23 — Subsequent Events
On October 1, 2022, the Financing Authority issued $12,845,000 Lease Revenue Bonds (Energy Efficiency
Program), Series A (Green Bonds) and $5,970,000 Lease Revenue Bonds (Energy Efficiency Program), Series B
(Green Bonds). Interest on the Bonds will be payable semiannually on June I and December 1 of each year,
commencing June 1, 2023 and at rate range from 4.375% to 5.000% annum. Principal on the Series A bonds
commences on June 1, 2023 and matures on June 1, 2050. Principal on the Series B bonds commends on
December 1, 2023 and matures on December 1, 2035. Proceeds of the bonds will be used to finance energy efficiency
improvements associated with buildings and facilities such as heating, ventilation, and air conditioning, lighting,
water conservation, solar, and refrigeration improvements (the "2022 Project"), and to pay the costs of issuing the
bonds.
99
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100
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
101
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102
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income (loss)
Fines and penalties
Other revenues
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital outlay
Capital improvement projects
Total expenditures
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
Original Final
Budget Budget
Actual
Variance with
Final Budget
$ 92,842,981
$ 103,658,191
$ 108,881,674 $
5,223,483
8,713,224
8,513,224
9,724,390
1,211,166
130,000
6,706,376
6,743,551
37,175
9,110,788
10,765,097
11,407,669
642,572
2,155,571
2,155,571
(4,598,424)
(6,753,995)
922,000
835,425
886,194
50,769
584,616
3,572,832
3,749,636
176,804
114,459,180
136,206,716
136,794,690
587,974
47,343,521
47,614,094
43,972,482
3,641,612
43,419,627
44,433,634
40,051,875
4,381,759
36,348
132,573
79,852
52,721
10,352,210
11,915,841
8,265,655
3,650,186
101,151,706
104,096,142
92,369,864
11,726,278
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 13,307,474 32,110,574 44,424,826 12,314,252
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year, as restated (Note 22)
End of year
2,040,317
2,071,758
2,005,376
(66,382)
(15,085,742)
(16,142,910)
(15,298,008)
844,902
(13,045,425)
(14,071,152)
(13,292,632)
778,520
$ 262,049 $
18,039,422
31,132,194 $
13,092,772
197,617,624
$ 228,749,818
103
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Developer fees
Other revenues
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 508,390 $ 508,390 $ (56,444) $ (564,834)
- 1,101,086 1,446,787 345,701
368,724 368,724 368,724 -
877,114 1,978,200 1,759,067 (219,133)
99,809
102,837
95,770
7,067
460,333
460,333
401,561
58,772
1,087,194
5,831,532
611,526
5,220,006
1,647,336
6,394,702
1,108,857
5,285,845
$ (770,222) $
(4,416,502)
650,210 $
5,066,712
7,369,619
$
8,019,829
104
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Developer Fees Special Revenue Fund
For the Year Ended June 30, 2022
REVENUES:
Investment earnings
Developer fees
Other revenues
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Capital improvement projects
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
$ 30,196
$ 30,196
$ (69,549) $
(99,745)
-
2,511,208
2,962,100
450,892
-
-
539
539
30,196
2,541,404
2,893,090
351,686
- 1,095,000
819,999
275,001
763,381 1,396,393
252,758
1,143,635
763,381 2,491,393
1,072,757
1,418,636
(UNDER) EXPENDITURES
(733,185)
50,011
1,820,333
OTHER FINANCING (USES):
Transfers out
(100,000)
(131,441)
(131,441)
Total other financing (uses)
(100,000)
(131,441)
(131,441)
NET CHANGE IN FUND BALANCE
$ (833,185) $
(81,430)
1,688,892
FUND BALANCE:
Beginning of year, as restated (Note 22)
End of year
9,798,266
$ 11,487,158
1,770,322
$ 1,770,322
105
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Public Library Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes
$ 8,481,209 $
8,481,209 $
8,817,029 $
335,820
Charges for services
207,713
207,713
321,083
113,370
Investment earnings
15,688
15,688
(64,074)
(79,762)
Other revenues
2,500
43,546
87,044
43,498
Total revenues
8,707,110
8,748,156
9,161,082
412,926
EXPENDITURES:
Operating:
Personnel
4,288,587
4,412,731
3,923,910
488,821
Operations and maintenance
3,013,605
3,095,715
3,057,111
38,604
Capital outlay
360,000
395,383
215,131
180,252
Capital improvement projects
262,400
114,105
91,902
22,203
Total expenditures
7,924,592
8,017,934
7,288,054
729,880
NET CHANGE IN FUND BALANCE
$ 782,518 $
730,222
1,873,028 $
1,142,806
FUND BALANCE:
Beginning of year 1,635,155
End of year $ 3,508,183
106
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Landscape Maintenance District #1 Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Taxes
$ 258,226
$ 258,226
$ 271,857
$ 13,631
Special assessments
14,697,645
14,697,645
14,280,265
(417,380)
Investment earnings
319,757
319,757
(535,517)
(855,274)
Total revenues
15,275,628
15,275,628
14,016,605
(1,259,023)
EXPENDITURES:
Operating:
Personnel
1,283,040
1,321,159
1,265,298
55,861
Operations and maintenance
12,540,855
13,429,519
12,139,755
1,289,764
Capital improvement projects
1,442,000
2,290,549
526,367
1,764,182
Total expenditures
15,265,895
17,041,227
13,931,420
3,109,807
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 9,733 (1,765,599) 85,185 1,850,784
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
10,000 10,000 10,000
(127,539) (127,539) (127,539)
(117,539) (117,539) (117,539)
$ (107,806) $ (1,883,138)
(32,354) $ 1,850,784
23,228,307
$ 23,195,953
107
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
American Rescue Plan Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital outlay
Capital improvement projects:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
- $ 15,108,126 $ 4,692,488 $ (10,415,638)
- 15,108,126 4,692,488 (10,415,638)
- 50,802
34,157
16,645
- 279,685
227,055
52,630
- 2,318,165
2,317,698
467
- 12,935,336
2,113,578
10,821,758
- 15,583,988
4,692,488
10,891,500
$ - $ (475,862)
- $ 475,862
108
City of Santa Clarita
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
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, operations and maintenance, 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.
109
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios
For the Year Ended June 30, 2022
Last Ten Fiscal Years'
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
Measurement period
Total pension liability
Service cost
Interest
Changes of assumptions
Differences between expected and actual experience
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Pension fiduciary net position
2020-21 2019-20 2018-19 2017-18 2016-17
$ 5,527,979 $ 5,350,001 $ 5,104,511 $ 4,920,377 $ 4,921,221
16,234,316 15,203,985 14,120,3 52 13,037,446 12,166,752
- - - (1,615,911) 11,654,992
1,168,851 2,498,828 3,019,582 1,709,604 (1,505,660)
(7,668,205)
(7,134,971)
(6,246,516)
(5,601,353)
(4,406,046)
15,262,941
15,917,843
15,997,929
12,450,163
22,831,259
226,954,635
211,036,792
195,038,863
182,588,700
159,757,441
$ 242,217,576 $
226,954,635 $
211,036,792 $
195,038,863 $
182,588,700
Contributions - employer
$
11,219,959
$
15,978,300
$
12,500,090
$
9,664,637
$
4,484,866
Contributions - employee
2,551,579
2,530,805
2,478,266
2,203,916
2,224,721
Net investment income
44,522,336
8,957,955
10,255,487
11,713,900
13,510,656
Benefit payments, including refunds of employee
contributions
(7,668,205)
(7,134,971)
(6,246,516)
(5,601,353)
(4,406,046)
Net plan to plan resources movement
(355)
Administrative expense
(192,013)
(242,657)
(109,362)
(211,742)
(177,534)
Other miscellaneous income/expense'
-
-
355
(402,101)
-
Net change in plan fiduciary net position
50,433,656
20,089,432
18,878,320
17,366,902
15,636,663
Plan fiduciary net position - beginning2
192,216,858
172,127,426
153,249,106
135,882,204
120,245,541
Plan fiduciary net position - ending (b)
$
242,650,514
$
192,216,858
$
172,127,426
$
153,249,106
$
135,882,204
Plan net pension liability (asset) - ending (a) - (b)
$
(432,938)
$
34,737,777
$
38,909,366
$
41,789,757
$
46,706,496
Plan fiduciary net position as a percentage
100.18%
84.69%
81.56%
78.57%
74.42%
of the total pension liability
Covered payro113
$
35,733,541
$
34,033,087
$
31,563,882
$
29,326,360
$
28,956,876
Plan net pension liability as a percentage of
covered payroll
-1.21%
102.07%
123.27%
142.50%
161.30%
1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and financial Reporting for
Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for
participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to
previously reported financial
2 Includes any beginning of year adjustment.
3 Includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal
years ended June 30, 2014-17.
Notes to Schedule:
Benefit Changes: There were no changes in benefits
Changes of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study
and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there
were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for
pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
110
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years'
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
Measurement period
Total pension liability
Service cost
Interest
Changes of assumptions
Differences between expected and actual experience
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Pension fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Net plan to plan move
Administrative expense
Other miscellaneous income/expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net pension liability (asset) - ending (a) - (b)
Plan fiduciary net position as a percentage
of the total pension liability
Covered payroll
Plan net pension liability as a percentage of
covered payroll
2015-16 2014-15 2013-14
$ 4,409,399 $ 4,418,053 $ 4,462,544
11,315,207 10,443,680 9,588,693
- (3,009,808) -
(305,665) 416,626
(3,347,335) (2,971,092) (2,561,655)
12,071,606 9,297,459 11,489,582
147,685,835 138,388,376 126,898,794
$ 159,757,441 $ 147,685,835 $ 138,388,376
$ 3,959,503 $ 3,740,145 $ 3,562,246
2,252,522 2,164,107 2,339,435
622,282 2,506,239 16,243,165
(3,347,335) (2,971,092) (2,561,655)
9,685
(71,202) (131,529)
3,415,770
5,317,555
19,583,191
116,829,771
111,512,216
91,929,025
$ 120,245,541 S
116,829,771 $
111,512,216
$ 39,511,900 S
30,856,064 $
26,876,160
75.27%
79.11%
80.58%
$ 28,584,202 $ 28,017,332 $ 26,879,556
138.23% 110.13% 99.99%
III
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of City Contributions - Pensions
For the Year Ended June 30, 2022
Last Ten Fiscal Years'
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
Fiscal year
2022
2021
2020
2019
2018
Actuarially determined contribution
$ 6,510,552
$ 6,190,238 $
6,323,890
$ 5,637,826 $
4,662,191
Contributions in relation to the
actuarially determined contribution
(8,462,978)
(11,219,252)
(15,976,871)
(12,499,992)
(9,662,191)
Contribution deficiency (excess)
$ (1,952,426)
$ (5,029,014) $
(9,652,981)
$ (6,862,166) $
(5,000,000)
Covered payroll
$ 35,373,331
$ 35,733,541 $
34,033,087
$ 31,563,882 $
29,326,360
Contributions as a percentage of covered
payroll
23.92%
31.40%
46.95%
39.60%
32.96%
1 Only 9 years shown after GASB 68 was implemented effective June 30, 2014.
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30,
2018 funding valuation report.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair Value Assets. For details, see June 30, 2018 Funding Valution Report.
Inflation 2.50%
Salary increases varies by entry age and service
Payroll Growth 2.75%
Investment rate of return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement age The probabilities of Retirement are based on the 2017 Ca1PERS Experience Study for the period from
1997 to 2015.
Mortality The probabilities of mortality are based on the 2017 Ca1PERS 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.
112
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of City Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years'
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
Fiscal year
Actuarially determined contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
2017
2016
2015
2014
$ 4,484,140 $
3,958,892 $
3,740,138 $
3,562,246
(4,484,140)
(3,958,892)
(3,740,138)
(3,562,246)
$ 28,956,876 $
28,584,202 $
28,017,332 $
26,879,556
15.49%
13.85%
13.35%
13.25%
113
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios
For the Year Ended June 30, 2022
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
Measurement period
Total OPEB liability
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
OPEB fiduciary net position
Contributions - employer
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Other expenses
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net OPEB liability (asset) - ending (a) - (b)
Plan fiduciary net position as a percentage
of the total OPEB liability
Covered -employee payroll
Plan net OPEB liability as a percentage of
covered -employee payroll
Notes to Schedule:
2021-22 2020-21 2019-20 2018-19
$ 1,100,210 $ 2,154,981 $ 1,610,969 $ 1,701,975
2,509,052 2,517,070 2,505,286 2,823,979
- (5,463,407) - (7,334,973)
- (17,074,375) 8,477,248 2,078,284
(1,326,369) (1,265,682) (1,202,903) (1,093,711)
2,282,893 (19,131,413) 11,390,600 (1,824,446)
39,707,814 58,839,227 47,448,627 49,273,073
$ 41,990,707 $ 39,707,814 $ 58,839,227 $ 47,448,627
$ 301,000 $ 638,000 $ 636,000 $ 923,250
(7,090,104) 10,837,685 1,475,065 2,618,633
(1,326,369) (1,265,682) (1,202,903) (1,093,711)
(105,845) (95,987) (77,123) (73,935)
(8,221,318) 10,114,016 831,039 2,374,237
52,283,592 42,169,576 41,338,537 38,964,300
$ 44,062,274 $ 52,283,592 $ 42,169,576 $ 41,338,537
$ (2,071,567) $ (12,575,778) $ 16,669,651 $ 6,110,090
104.93% 131.67% 71.67% 87.12%
$ 41,385,678 $ 35,631,538 $ 38,295,087 $ 33,895,751
-5.01%-35.29% 43.53% 18.03%
* For the 12 month period ending on June 30 (Measurement Date).
Historical information is only for measurement periods presented after GASB 75 implementation.
114
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
Measurement period
2017-18
Total OPEB liability
Service cost
$ 1,711,000
Interest
2,633,073
Changes of benefit terms
-
Differences between expected and actual experience
-
Changes of assumptions
(1,071,000)
Benefit payments, including refunds of employee contributions
(1,054,000)
Net change in total pension liability
2,219,073
Total OPEB liability - beginning
47,054,000
Total OPEB liability - ending (a)
$ 49,273,073
OPEB fiduciary net position
Contributions - employer
$ 1,227,000
Net investment income
2,963,587
Benefit payments, including refunds of employee contributions
(1,054,041)
Administrative expense
(146,319)
Other expenses
Net change in plan fiduciary net position
2,990,227
Plan fiduciary net position - beginning
35,974,073
Plan fiduciary net position - ending (b)
$ 38,964,300
Plan net OPEB liability (asset) - ending (a) - (b)
$ 10,308,773
Plan fiduciary net position as a percentage
79.08%
of the total OPEB liability
Covered -employee payroll
$ 30,634,000
Plan net OPEB liability as a percentage of
covered -employee payroll
33.65%
115
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits
For the Year Ended June 30, 2022
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
Fiscal year ended June 30
2022
2021
2020
2019
Actuarially determined contribution (ADC)
$ 482,000
$ 517,000 $
1,112,000 $
1,127,000
Contributions in relation to the
actuarially determined contribution
301,000
638,000
636,000
923,250
Contribution deficiency (excess)
$ 181,000
$ (121,000) $
476,000 $
203,750
Covered -employee payroll*
$ 41,385,678
$ 35,631,538 $
38,295,087 $
33,895,751
Contributions as a percentage of covered payroll
0.73%
1.79%
1.66%
2.72%
* For the 12 months period ending on June 30 (fiscal year end) as reported by the City
Methods and assumptions used to determine contribution rates:
Contribution valuation date
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Discount Rate
General Inflation Rate
Medical Trend
Mortality
Mortality Improvement
June 30, 2020
Entry Age Normal, level percentage of payroll
Level percentage of pay
12-year fixed period for 2021/22
Investment gains and losses spread over 5-year rolling
6.50%
2.75%
Non -Medicare- 7% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Ca1PERS 1997-2015 experience study
Retirement mortality projected fully generational with scale MP-2019
Note: Historical information presented is only for periods after GASB 75 implementation.
116
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
Fiscal year ended June 30 2018
Actuarially determined contribution (ADC) $ 1,755,000
Contributions in relation to the
actuarially determined contribution 1,227,000
Contribution deficiency (excess) $ 528,000
Covered -employee payroll* $ 30,634,000
Contributions as a percentage of covered payroll 4.01%
117
City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Money Weighted Rate of Return - OPEB
For the Year Ended June 30, 2022
Last Ten Fiscal Years*
Other Postemployment Benefits ("OPEB") Plan
Fiscal year 2022 2021 2020
Actual money -weighted rate of return -
net of investment expense-13.55% 26.10% 3.78%
* Fiscal year 2017 was the first year of GASB 74 implementation, therefore, only six years are shown.
2019 2018 2017
6.94% 8.26% 12.81%
118
SUPPLEMENTARY INFORMATION
119
This page intentionally left blank.
120
NONMAJOR GOVERNMENTAL FUNDS
Nonmaior Special Revenue Funds:
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted
or committed to expenditure for specified purposes other than debt service or capital projects.
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.
SBl 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 stonnwater and run-off
programs.
Surface Transportation Program — To account for receipts and disbursements associated with the Surface
Transportation Program restricted for construction, reconstruction, and improvement of highways and bridges on
eligible Federal Aid highway routes.
121
NONMAJOR GOVERNMENTAL FUNDS
Nonmaior Special Revenue Funds (Continued):
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.
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.
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 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.
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.
122
NONMAJOR GOVERNMENTAL FUNDS
Nonmaior Special Revenue Funds (Continued):
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, LMD 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.
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.
123
NONMAJOR GOVERNMENTAL FUNDS
Nonmaior Capital Proiects Funds:
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.
Nonmaior Debt Services Funds:
The Debt Service Funds are used to account for and report financial resources that are restricted, committed, or
assigned to expenditures for principal and interest.
Public Financing Authority — To account for principal and interest payments for obligations issued by the Santa
Clarita Public Financing Authority and bond proceeds held by the City's trustee. Budgetary control includes items
restricted by the bond indentures.
124
City of Santa Clarita
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Special
Bikeway Gas Tax Proposition A Assessment
$ 383,455 $ - $ 10,776,540 $ 3,861,591
- 12,857 - -
705 - 19,815 7,069
- - - 23,844
12,352 423,317 - -
$ 290,059 $ 54,124 $ 532,947 $ 13,829
- 586,833 - -
290,059 640,957 532,947 13,829
106,453 - 10,263,408 3,878,675
- (204,783) - -
106,453 (204,783) 10,263,408 3,878,675
$ 396,512 $ 436,174 $ 10,796,355 $ 3,892,504
(Continued)
125
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Street SB 1 Road
Lighting Measure M Repair and
District Local Return Activity State Park
$ 14,425,233 $ 7,080,903 $ 4,665,913 $ -
153,239 - - -
27,604 13,020 8,579 -
313,444 - - -
- - 796,976 250,000
415,077 - - -
$ 306,324 $ 118,726 $
- - - 250,000
306,324 118,726 - 250,000
- - 250,000
- - - 250,000
15,028,273 6,975,197 5,471,468 -
- - - (250,000)
15,028,273 6,975,197 5,471,468 (250,000)
$ 15,334,597 $ 7,093,923 $ 5,471,468 $ 250,000
(Continued)
126
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
TDA Traffic Safety
$ 10,418,383
19,157 -
- 46,209
CDBG AQMD
- $ 226,637
- 417
115,200 -
163,930 72,874
$ 10,437,540 $ 46,209 $ 279,130 $ 299,928
$ 3,282,354 $ - $ 158,685 $ 14,406
- 46,209 11,108 -
3,282,354 46,209 169,793 14,406
7,155,186 - 109,337 285,522
$ 10,437,540 $ 46,209 $ 279,130 $ 299,928
(Continued)
127
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Surface
Transportation BJA Law Supplemental
Stormwater Program Enforcement Law Grant
$ 3,963,675 $ - $ 2 $ 423,137
37,080 - - -
7,281 - - 778
201,775 - - -
$ 4,209,811 $ - $ 2 $ 423,915
$ 252,035 $ - $ - $ 78,605
- 10,900 - -
252,035 10,900 - 78,605
3,957,776 - 2 345,310
- (10,900) - -
3,957,776 (10,900) 2 345,310
$ 4,209,811 $ - $ 2 $ 423,915
(Continued)
128
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Public
Library Education and
HOME Facilities Fees Government Proposition C
$ 604,484 $ 3,979,601 $
24,819 -
1,111 7,317
2,064,869 -
689,028 $ 10,550,568
1,267 19,400
117,493 -
- 1,401,499
3,976 $ 334,682
- - - 1,283,606
- - 3,976 1,618,288
- - - 878,316
- - - 878,316
2,695,283 3,986,918 803,812 9,474,863
$ 2,695,283 $ 3,986,918 $
807,788 $ 11,971,467
(Continued)
129
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Measure H Measure R
Homeless Highway
Initiatives Federal Grants Measure R Improvement
$ - $ 1,995,637 $ 4,624,412 $ -
- - 8,503 -
228,322 278,846 - 94,476
$ 25,633 $ 245,482 $ 397,297 $ 78,855
202,689 - - 15,643
- 1,094,079 - -
228,322 1,339,561 397,297 94,498
228,322 278,846 - 94,380
- 656,076 4,235,618 -
(228,322) - - (94,402)
(228,322) 656,076 4,235,618 (94,402)
$ 228,322 $ 2,274,483 $ 4,632,915 $ 94,476
(Continued)
130
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Measure W Tourism
Measure M Measure A Safe Clean Marketing
$ - $ - $ 5,719,605 $ 725,056
- - 10,517 1,333
- - - 123,266
- - - 21,417
557,461 736 - -
$ 89,951 $ 736 $ 216,808 $ 17,930
467,510 738 - -
557,461 1,474 216,808 17,930
474,809 736 - -
474,809 736 - -
21,417
- - 5,513,314 831,725
(474,809) (1,474) - -
(474,809) (1,474) 5,513,314 853,142
$ 557,461 $ 736 $ 5,730,122 $ 871,072
(Continued)
131
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Housing
Miscellaneous Park Successor
OSPD Grants Dedication Agency
$ 6,848,562 $ - $ 2,341,128 $ 797,919
12,593 - 4,305 1,467
108,627 - - -
- 12,772 - -
- 2,736,535 - -
- - - 206,386
$ 134,569 $ 1,089,037 $ 267,769 $ -
- - - 34,479
- 1,494,687 - -
134,569 2,583,724 267,769 34,479
- 607,130 - -
- 607,130 - -
- 12,772 - -
6,835,213 - 2,077,664 971,293
- (454,319) - -
6,835,213 (441,547) 2,077,664 971,293
$ 6,969,782 $ 2,749,307 $ 2,345,433 $ 1,005,772
(Continued)
132
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid costs
Due from other governments
Restricted assets:
Cash and investments
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
Special Revenue Funds
Tourism Cooper St VC
Marketing Parking Wastewater
Bureau Areawide CFD 2020-1 Standby District
$ 63,672 $ 5,941,804 $
- 31,385
117 10,906
- 363,074
- 39,892
- $ 3,306,181
- 6,079
- 170,930
$ - $ 1,104,281 $ - $ -
- - 101,501 -
- 1,104,281 101,501 -
- 39,892 - -
63,789 5,242,888 - 3,483,190
- - (101,501) -
63,789 5,282,780 (101,501) 3,483,190
$ 63,789 $ 6,387,061 $ - $ 3,483,190
(Continued)
133
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue
Fund Capital Projects Funds
Santa Clarita
Public General PFA
Television Capital Capital Civic
Authority Projects Projects Arts Projects
ASSETS
Cash and investments $ 17,280 $ 689,853 $ 10 $ 372,308
Accounts receivable, net - - - -
Interest receivable - - - 500
Taxes receivables - - - -
Loans receivable - - - -
Prepaid costs - - - -
Due from other governments - - - -
Restricted assets:
Cash and investments - - - -
Cash and investments with fiscal agent
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Total deferred inflows of resources
Fund Balances (Deficits):
Nonspendable
Restricted
Assigned
Unassigned (deficits)
Total fund balances (deficits)
Total liabilities, deferred inflows of
resources and fund balances
$ 17,280 $ 689,853 $ 10 $ 372,808
$ - $ 20,139 $ $ -
- 20,139 -
17,280 - - -
- 669.714 10 372.909
$ 17,280 $ 689,853 $ 10 $ 372,808
(Continued)
134
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Public
Total Nonmajor
Financing
Governmental
Authority
Funds
ASSETS
Cash and investments
$ 1,087,261
$ 106,579,838
Accounts receivable, net
-
259,380
Interest receivable
-
189,840
Taxes receivables
-
1,468,662
Loans receivable
-
2,180,069
Prepaid costs
-
74,081
Due from other governments
-
7,017,324
Restricted assets:
Cash and investments
-
621,463
Cash and investments with fiscal agent
6,915
6,915
Total assets
$ 1,094,176
$ 118,397,572
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 9,129,239
Due to other governments - 34,479
Due to other funds - 4,471,424
Unearned revenue - 1,094,079
Total liabilities - 14,729,221
Deferred Inflows of Resources
Unavailable revenue
- 2,812,539
Total deferred inflows of resources
- 2,812,539
Fund Balances (Deficits):
Nonspendable
- 74,081
Restricted
1,094,176 101,559,709
Assigned
- 1,042,532
Unassigned (deficits)
- (1,820,510)
Total fund balances (deficits)
1,094,176 100,855,812
Total liabilities, deferred inflows of
resources and fund balances
$ 1,094,176 $ 118,397,572
(Concluded)
135
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136
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
Special Revenue Funds
Special
Bikeway
Gas Tax
Proposition A
Assessment
-
-
-
646,048
138,939
5,180,583
5,604,452
-
(10,153)
(12,619)
(224,067)
(85,794)
-
27,678
-
-
128,786
5,195,642
5,380,385
560,254
- 5,364,479 - 68,187
- - - 177,195
23,771 5,166 1,695,189 -
5,369,645
245,382
23,771
1,695,189
105,015
(174,003)
3,685,196
314,872
-
317,655
-
17,000
-
(339,398)
(4,228,859)
(4,754)
-
(21,743)
(4,228,859)
12,246
105,015
(195,746)
(543,663)
327,118
1,438
(9,037)
10,807,071
3,551,557
$ 106,453 $
(204,783) $
10,263,408 $
3,878,675
(Continued)
137
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
Street
SB 1 Road
Lighting
Measure M
Repair and
District
Local Return
Activity
State Park
REVENUES:
Taxes
$ -
$ -
$ -
$ -
Special assessments
6,105,312
-
-
-
Intergovernmental
-
3,944,834
4,501,930
116,340
Charges for services
-
-
-
-
Investment income (loss)
(334,637)
(164,805)
(114,652)
-
Fines and forfeitures
472,119
-
-
-
Developer fees
-
-
Other revenue
136,533
-
-
-
Total revenues
6,379,327
3,780,029
4,387,278
116,340
EXPENDITURES:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Recreation and community services
-
-
-
-
Public works
1,498,886
-
-
-
Community development
-
-
-
-
Neighborhood services
3,038,434
-
-
6,630
Capital outlay
134,991
3,644,097
3,554,073
250,000
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total expenditures
4,672,311
3,644,097
3,554,073
256,630
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
1,707,016
135,932
833,205
(140,290)
OTHER FINANCING SOURCES (USES):
Transfers in
218,063
-
-
-
Transfers out
(1,089,185)
-
-
-
Total other financing sources (uses)
(871,122)
-
-
-
NET CHANGES IN FUND BALANCES
835,894
135,932
833,205
(140,290)
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22) 14,192,379 6,839,265 4,638,263 (109,710)
End of year $ 15,028,273 $ 6,975,197 $ 5,471,468 $ (250,000)
(Continued)
138
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
Special Revenue Funds
TDA Traffic Safety CDBG AQMD
10,759,480 - 1,053,124 286,347
(234,695) - 534 (4,021)
- 500,057 - -
14,175
11,204,219
11,218,394
- 732,200 -
- - 13,961
- 327,148 161,221
- 1,059,348 175,182
(693,609) 500,057 (5,690) 107,144
(217,655) (500,057) - -
(217,655) (500,057) - -
(911,264) - (5,690) 107,144
8,066,450 - 115,027 178,378
$ 7,155,186 $ - $ 109,337 $ 285,522
(Continued)
139
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
Special Revenue Funds
Surface
Transportation BJA Law Supplemental
Stormwater Program Enforcement Law Grant
3,769,691 - - -
- 1,163,143 21,986 546,051
19,896 - - -
(78,665) - - (9,016)
531,311 - - -
4,242,233 1,163,143 21,986 537,035
- - 21,986 496,404
2,044,651 - - -
1,981,117 - - -
70,617 1,102,124 - -
4,096,385 1,102,124 21,986 496,404
145,848 61,019 - 40,631
3,690 - - -
(77,712) - - -
(74,022) - - -
71,826 61,019 - 40,631
3,885,950 (71,919) _
$ 3,957,776 $ (10,900) $
2 304,679
2 $ 345,310
(Continued)
140
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
Public
Library Education and
HOME Facilities Fees Government Proposition C
REVENUES:
Taxes $ - $ - $ 436,645 $ -
Special assessments - - - -
Intergovernmental - - - 9,279,022
Charges for services - - - -
Investment income (loss) (13,758) (88,690) (15,261) (221,236)
Fines and forfeitures - - - -
Developer fees - 202,723 - -
Other revenue 51,485 - - -
Total revenues 37,727 114,033 421,384 9,057,786
EXPENDITURES:
Current:
General government
-
-
197,811
-
Public safety
-
-
-
-
Recreation and community services
-
-
-
-
Public works
-
-
-
-
Community development
-
-
-
-
Neighborhood services
-
-
-
-
Capital outlay
-
-
24,090
1,609,808
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total expenditures
-
-
221,901
1,609,808
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
37,727
114,033
199,483
7,447,978
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
Transfers out
-
-
-
(4,107,832)
Total other financing sources (uses)
-
-
-
(4,107,832)
NET CHANGES IN FUND BALANCES
37,727
114,033
199,483
3,340,146
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 20)
2,657,556
3,872,885
604,329
6,134,717
End of year
$ 2,695,283 $
3,986,918 $
803,812 $
9,474,863
(Continued)
141
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
Measure H
Measure R
Homeless
Highway
Initiatives
Federal Grants
Measure R
Improvement
REVENUES:
Taxes
$ -
$ -
$ -
$ -
Special assessments
-
-
-
-
Intergovernmental
-
4,222,350
3,486,021
12,687
Charges for services
-
-
-
-
Investment income (loss)
-
6,847
(104,810)
-
Fines and forfeitures
-
-
-
-
Developer fees
-
-
-
Other revenue
219,860
-
-
-
Total revenues
219,860
4,229,197
3,381,211
12,687
EXPENDITURES:
Current:
General government
-
-
-
-
Public safety
-
-
-
-
Recreation and community services
-
-
-
-
Public works
-
-
-
-
Community development
298,088
3,944,948
-
-
Neighborhood services
-
-
-
-
Capital outlay
-
434,860
2,032,600
91,308
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total expenditures
298,088
4,379,808
2,032,600
91,308
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(78,228)
(150,611)
1,348,611
(78,621)
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
Transfers out
-
-
-
-
Total other financing sources (uses)
-
-
-
-
NET CHANGES IN FUND BALANCES
(78,228)
(150,611)
1,348,611
(78,621)
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22) (150,094) 806,687 2,887,007 (15,781)
End of year $ (228,322) $ 656,076 $ 4,235,618 $ (94,402)
(Continued)
142
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
Special Revenue Funds
Measure W Tourism
Measure M Measure A Safe Clean Marketing
5,009,954 $ -
94,925 387,548 - -
- - - 917,590
- 103 (118,812) (19,497)
Y`t" .' JO/,VJ1 `T,071, 1`TG 070,V7J
- - - 517,848
- - 180,087 -
561,789 736 699,807 -
561,789 736 879,894 517,848
(466,864) 386,915 4,011,248 380,245
- (194,251) - -
- (194,251) - -
(466,864) 192,664 4,011,248 380,245
(7,945) (194,138) 1,502,066 472,897
$ (474,809) $ (1,474) $ 5,513,314 $ 853,142
(Continued)
143
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
Special Revenue Funds
Housing
Miscellaneous Park Successor
OSPD Grants Dedication Agency
3,051,349 - - -
- 7,650,801 - -
12,272 - - -
(158,772) - (54,383) (17,705)
- - 62,515
4,271 - - -
2,909,120 7,650,801 8,132 (17,705)
787,416 - -
- 391,119 -
- 58,421 - -
1,061,178 7,626,665 1,983,047 -
8,076,205
-
1,848,594
1,983,047
1,060,526
(425,404)
(1,974,915)
(17,705)
-
-
-
72,688
(803,341)
-
-
-
(803,341)
-
-
72,688
257,185
(425,404)
(1,974,915)
54,983
6,578,028
(16,143)
4,052,579
916,310
$ 6,835,213 $
(441,547) $
2,077,664 $
971,293
(Continued)
144
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
Special Revenue Funds
Tourism Cooper St VC
Marketing Parking Wastewater
Bureau Areawide CFD 2020-1 Standby District
- 7,351,963 304,242 865,142
2,629 - - -
(1,421) (136,272) 1,326 (73,113)
- 55,978 - -
1,208 7,271,669 305,568 792,029
- - 129,749 -
7,458 - - -
- 17,624,168 - 5,093
- 632,597 - -
7,458 18,256,765 129,749 5,093
(6,250) (10,985,096) 175,819 786,936
- 11,416,425 - -
- (577,597) - -
- 10,838,828 - -
(6,250) (146,268) 175,819 786,936
70,039 5,429,048 (277,320) 2,696,254
$ 63,789 $ 5,282,780 $ (101,501) $ 3,483,190
(Continued)
145
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue
Fund Capital Projects Funds
Santa Clarita
Public General PFA
Television Capital Capital Civic
Authority Projects Projects Arts Projects
REVENUES:
Taxes
Special assessments
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 services
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
End of year
330,566 - - -
(117) - - (5,960)
259,763 - - -
- 9,197 - -
- 639,588 - 76,158
70,612 -
192 -
330,567 648,785
(118) (648,785)
- 959,705
- 76,158
- (82,118)
- 100,000
(118) 310,920 - 17,882
17,398 358,794 10 354,926
$ 17,280 $ 669,714 $ 10 $ 372,808
(Continued)
146
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
June 30, 2022
Debt Service Fund
Public Total Nonmajor
Financing Governmental
Authority Funds
REVENUES:
Taxes
$ - $
5,446,599
Special assessments
-
22,093,747
Intergovernmental
-
58,781,129
Charges for services
-
952,387
Investment income (loss)
293
(2,293,828)
Fines and forfeitures
-
1,055,832
Developer fees
-
265,238
Other revenue
490,488
1,433,948
Total revenues
490,781
87,735,052
EXPENDITURES:
Current:
General government
-
457,574
Public safety
-
518,390
Recreation and community services
-
787,416
Public works
-
9,129,324
Community development
-
5,891,661
Neighborhood services
-
23,085,106
Capital outlay
-
39,646,847
Debt service:
Principal retirement
2,010,000
2,080,612
Interest and fiscal charges
2,469,209
2,469,401
Total expenditures
4,479,209
84,066,331
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(3,988,428)
3,668,721
OTHER FINANCING SOURCES (USES):
Transfers in
4,479,209
17,584,435
Transfers out
-
(12,140,641)
Total other financing sources (uses)
4,479,209
5,443,794
NET CHANGES IN FUND BALANCES
490,781
9,112,515
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 22)
603,395
91,743,297
End of year
$ 1,094,176 $
100,855,812
(Concluded)
147
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148
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Bikeway Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 390,451 $
390,451
390,451
428,106 $ 138,939 $ (289,167)
- (10,153) (10,153)
428,106 128,786 (299,320)
429,537 23,771 405,766
390,451 429,537 23,771 405,766
$ - $ (1,431) 105,015 $ 106,446
1,438
$ 106,453
149
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
REVENUES:
Intergovernmental
Investment earnings
Fines and forfeitures
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital outlay
Capital improvement projects
Total expenditures
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
$ 5,371,370
5,279,718
$ 5,180,583 $
(99,135)
-
-
(12,619)
(12,619)
-
-
27,678
27,678
5,371,370
5,279,718
5,195,642
(84,076)
2,698,749
2,779,917
2,710,982
68,935
2,647,346
2,662,346
2,653,497
8,849
232,700
239,659
-
239,659
-
21,920
5,166
16,754
5,578,795
5,703,842
5,369,645
334,197
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (207,425) (424,124) (174,003) 250,121
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
611,380 317,655 317,655
(339,398) (339,398) (339,398)
271,982 (21,743) (21,743)
$ 64,557 $ (445,867)
(195,746) $ 250,121
(9,037)
$ (204,783)
150
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Proposition A Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 4,481,802 $
4,481,802
453,500
5,581,802 $ 5,604,452 $ 22,650
- (224,067) (224,067)
5,581,802 5,380,385 (201,417)
2,030,947 1,695,189 335,758
453,500 2,030,947 1,695,189 335,758
4,028,302 3,550,855 3,685,196 134,341
(8,319,648) (4,228,859) (4,228,859) -
(8,319,648) (4,228,859) (4,228,859) -
$ (4,291,346) $ (678,004) (543,663) $ 134,341
10,807,071
$ 10,263,408
151
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Special Assessment Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 653,786
$ 653,786
$ 646,048 $
(7,738)
Investment earnings
49,441
49,441
(85,794)
(135,235)
Total revenues
703,227
703,227
560,254
(142,973)
EXPENDITURES:
Operating:
Personnel
57,767
59,295
48,163
11,132
Operations and maintenance
351,020
351,020
197,219
153,801
Total expenditures
408,787
410,315
245,382
164,933
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 294,440 292,912 314,872 21,960
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
17,000
17,000
17,000
(4,754)
(4,754)
(4,754)
12,246
12,246
12,246
$ 306,686 $ 305,158
327,118 $ 21,960
3,551,557
$ 3,878,675
152
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Street Lighting District Special Revenue Fund
For the Year Ended June 30, 2022
REVENUES:
Special assessments
Investment earnings
Fines and forfeitures
Other revenues
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
$ 6,006,092
$ 6,006,092
$ 6,105,312 $
99,220
204,091
204,091
(334,637)
(538,728)
485,000
485,000
472,119
(12,881)
15,000
149,245
136,533
(12,712)
6,710,183
6,844,428
6,379,327
(465,101)
240,426 271,599
3,894,467 4,285,040
- 322,171
4,134,893 4,878,810
268,070
3,529
4,269,250
15,790
134,991
187,180
4,672,311
206,499
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,575,290 1,965,618 1,707,016 (258,602)
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
218,063 218,063 218,063
(1,089,185) (1,089,185) (1,089,185)
(871,122) (871,122) (871,122)
$ 1,704,168 $ 1,094,496
835,894 $ (258,602)
14,192,379
$ 15,028,273
153
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 3,159,907 $
3,159,907
4,053,896
3,971,907 $ 3,944,834 $ (27,073)
- (164,805) (164,805)
3,971,907 3,780,029 (191,878)
6,046,917 3,644,097 2,402,820
4,053,896
6,046,917
3,644,097
2,402,820
$ (893,989) $
(2,075,010)
135,932 $
2,210,942
6,839,265
$ 6,975,197
154
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
SBl Road Repair and Activity Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 4,262,756 $
4,262,756
5,127,075
4,262,756 $ 4,501,930 $ 239,174
- (114,652) (114,652)
4,262,756 4,387,278 124,522
8,681,147 3,554,073 5,127,074
5,127,075
8,681,147
3,554,073
5,127,074
$ (864,319) $
(4,418,391)
833,205 $
5,251,596
4,638,263
$ 5,471,468
155
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
State Park Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 111,000 $ 365,356 $ 116,340 $ (249,016)
Total revenues 111,000 365,356 116,340 (249,016)
EXPENDITURES:
Operating:
Personnel - - 6,630 (6,630)
Capital improvement projects 111,000 250,000 250,000 -
Total expenditures 111,000 250,000 256,630 (6,630)
NET CHANGE IN FUND BALANCE $ - $ 115,356 (140,290) $ (255,646)
FUND BALANCE:
Beginning of year (109,710)
End of year $ (250,000)
156
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
11,307,073 $ 11,786,179 $ 10,759,480 $ (1,026,699)
- - (234,695) (234,695)
11,307,073 11,786,179 10,524,785 (1,261,394)
10,801,672 19,917,329 11,218,394 8,698,935
10,801,672 19,917,329 11,218,394 8,698,935
505,401 (8,131,150) (693,609) 7,437,541
(511,380) (217,655) (217,655) -
(511,380) (217,655) (217,655) -
$ (5,979) $ (8,348,805) (911,264) $ 7,437,541
8,066,450
$ 7,155,186
157
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Fines and forfeitures $ 550,000 $ 550,000 $ 500,057 $ (49,943)
Total revenues 550,000 550,000 500,057 (49,943)
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
(550,000) (550,000) (500,057) 49,943
(550,000) (550,000) (500,057) 49,943
158
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 3,312,428 $ 2,541,924 $ 1,053,124 $ (1,488,800)
Investment earnings - - 534 534
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year, as restated (Note 22)
End of year
3,312,428 2,541,924 1,053,658 (1,488,266)
177,804
161,635
140,704
20,931
1,117,455
883,343
591,496
291,847
50,000
2,137,123
327,148
1,809,975
1,345,259
3,182,101
1,059,348
2,122,753
$ 1,967,169 $
(640,177)
(5,690) $
634,487
115,027
$ 109,337
159
City of Santa Clarita
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, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Intergovernmental
$ 280,957
$ 280,957
$ 286,347 $
5,390
Investment earnings
1,941
1,941
(4,021)
(5,962)
Total revenues
282,898
282,898
282,326
(572)
EXPENDITURES:
Operating:
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
22,101 22,101 13,961 8,140
177,595 161,221 16,374
22,101 199,696 175,182 24,514
$ 260,797 $ 83,202 107,144 $ 23,942
178,378
$ 285,522
160
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Stormwater Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 3,753,987
$ 3,753,987 $
3,769,691 $
15,704
Charges for services
19,479
19,479
19,896
417
Investment earnings
52,480
52,480
(78,665)
(131,145)
Other revenues
564,265
1,026,922
531,311
(495,611)
Total revenues
4,390,211
4,852,868
4,242,233
(610,635)
EXPENDITURES:
Operating:
Personnel
1,382,494
1,418,901
1,376,912
41,989
Operations and maintenance
2,129,502
2,924,722
2,648,856
275,866
Capital outlay
41,300
56,300
12,678
43,622
Capital improvement projects
97,877
427,188
57,939
369,249
Total expenditures
3,651,173
4,827,111
4,096,385
730,726
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
739,038
25,757
145,848
120,091
OTHER FINANCING SOURCES (USES):
Transfers in
3,690
3,690
3,690
-
Transfers out
(77,712)
(77,712)
(77,712)
-
Total other financing sources (uses)
(74,022)
(74,022)
(74,022)
-
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 665,016 $ (48,265)
71,826 $ 120,091
3,885,950
$ 3,957,776
161
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Surface Transportation Program Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 1,301,580 $ 1,338,737 $ 1,163,143 $ (175,594)
1,301,580 1,338,737 1,163,143 (175,594)
1,301,580 2,638,174 1,102,124 1,536,050
1,301,580 2,638,174 1,102,124 1,536,050
$ - $ (1,299,437) 61,019 $ 1,360,456
(71,919)
$ (10,900)
162
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
BJA Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
- $ 25,988 $ 21,986 $ (4,002)
- 25,988 21,986 (4,002)
- 25,988 21,986 4,002
- 25,988 21,986 4,002
2
$ 2
163
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Supplemental Law Grant Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 351,750 $
351,750
351,750 $ 546,051 $ 194,301
- (9,016) (9,016)
351,750 537,035 185,285
493,957
493,957
496,404
(2,447)
493,957
493,957
496,404
(2,447)
$ (142,207) $
(142,207)
40,631 $
182,838
304,679
$ 345,310
164
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
HOME Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Other revenue
Total revenues
10 D19011/V[!1DoWea1"W1.1111KIM]N
FUND BALANCE:
Beginning of year, as restated (Note 22)
End of year
$ 4,935 $ 4,935
4,935 4,935
$ 4,935 $ 4,935
$ (13,758) $
(18,693)
51,485
51,485
37,727
32,792
37,727 $
32,792
2,657,556
$ 2,695,283
165
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Library Facilities Fees Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Investment earnings
$ 59,030
$ 59,030
$ (88,690)
$ (147,720)
Developer fees
500,000
200,000
202,723
2,723
Total revenues
559,030
259,030
114,033
(144,997)
NET CHANGE IN FUND BALANCE
$ 559,030
$ 259,030
114,033
$ (144,997)
FUND BALANCE:
Beginning of year 3,872,885
End of year $ 3,986,918
166
City of Santa Clarita
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, 2022
REVENUES:
Taxes
Investment earnings
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
$ 430,000
$ 430,000
$ 436,645
$ 6,645
10,196
10,196
(15,261)
(25,457)
440,196
440,196
421,384
(18,812)
235,704
235,704
197,811
37,893
32,000
32,000
24,090
7,910
267,704
267,704
221,901
45,803
$ 172,492
$ 172,492
199,483
$ 26,991
604,329
$ 803,812
167
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Proposition C Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $
3,717,537 $
10,499,453 $
9,279,022 $
(1,220,431)
Investment earnings
-
-
(221,236)
(221,236)
Total revenues
3,717,537
10,499,453
9,057,786
(1,441,667)
EXPENDITURES:
Capital improvement projects
-
9,488,594
1,609,808
7,878,786
Total expenditures
-
9,488,594
1,609,808
7,878,786
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
3,717,537
1,010,859
7,447,978
6,437,119
OTHER FINANCING (USES):
Transfers out
-
(4,107,832)
(4,107,832)
-
Total other financing (uses)
-
(4,107,832)
(4,107,832)
-
NET CHANGE IN FUND BALANCE $
3,717,537 $
(3,096,973)
3,340,146 $
6,437,119
FUND BALANCE:
Beginning of year 6,134,717
End of year $ 9,474,863
168
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Otherrevenues $
- $ 501,493 $
219,860 $
(281,633)
Total revenues
- 501,493
219,860
(281,633)
EXPENDITURES:
Operating:
Personnel
- 45,091
43,523
1,568
Operations and maintenance
- 300,000
254,565
45,435
Total expenditures
- 345,091
298,088
47,003
NET CHANGE IN FUND BALANCE $
- $ 156,402
(78,228) $
(234,630)
FUND BALANCE:
Beginning of year (150,094)
End of year $ (228,322)
169
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Federal Grants Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 1,266,713 $
1,266,713
6,408,033 $ 4,222,350 $ (2,185,683)
- 6,847 6,847
6,408,033 4,229,197 (2,178,836)
- 4,196,658 4,093,753 102,905
1,097,776 3,172,987 286,055 2,886,932
1,097,776 7,369,645 4,379,808 2,989,837
$ 168,937 $ (961,612) (150,611) $ 811,001
806,687
$ 656,076
170
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure R Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
$ 2,788,153 $
3,504,153 $
3,486,021 $
(18,132)
Investment earnings
-
-
(104,810)
(104,810)
Total revenues
2,788,153
3,504,153
3,381,211
(122,942)
EXPENDITURES:
Capital improvement projects
3,339,112
2,605,476
2,032,600
572,876
Total expenditures
3,339,112
2,605,476
2,032,600
572,876
NET CHANGE IN FUND BALANCE
$ (550,959) $
898,677
1,348,611 $
449,934
FUND BALANCE:
Beginning of year
2,887,007
End of year
$
4,235,618
171
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
- $ 4,395,359 $ 12,687 $ (4,382,672)
- 4,395,359 12,687 (4,382,672)
- 4,386,430 91,308 4,295,122
- 4,386,430 91,308 4,295,122
- $ 8,929 (78,621) $ (87,550)
FUND BALANCE:
Beginning of year (15,781)
End of year $ (94,402)
172
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure M ATP Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 1,174,500 $
880,291 $
94,925 $
(785,366)
1,174,500
880,291
94,925
(785,366)
1,174,700
1,859,545
561,789
1,297,756
1,174,700
1,859,545
561,789
1,297,756
$ (200) $
(979,254)
(466,864) $
512,390
(7,945)
$ (474,809)
173
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 194,251 $ 3,461,047 $ 387,548 $ (3,073,499)
Investment earnings - - 103 103
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
194,251 3,461,047
- 3,072,514
3,072,514
387,651 (3,073,396)
736 3,071,778
736 3,071,778
194,251 388,533 386,915 (1,618)
(179,836) (194,251) (194,251) -
(179,836) (194,251) (194,251) -
$ 14,415 $ 194,282 192,664 $ (1,618)
(194,138)
$ (1,474)
174
City of Santa Clarita
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, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Taxes
$ 3,211,394
$ 3,508,851
$ 5,009,954 $
1,501,103
Investment earnings
94,542
94,542
(118,812)
(213,354)
Total revenues
3,305,936
3,603,393
4,891,142
1,287,749
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
133,955
137,032
140,379
(3,347)
38,085
39,708
39,708
-
2,031,103
2,326,771
699,807
1,626,964
2,203,143
2,503,511
879,894
1,623,617
$ 1,102,793 $
1,099,882
4,011,248 $
2,911366
1,502,066
$ 5,513,314
175
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Tourism Marketing District Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Charges for services
$ 625,000
$ 687,500
$ 917,590 $
230,090
Investment earnings
6,189
6,189
(19,497)
(25,686)
Total revenues
631,189
693,689
898,093
204,404
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
31,885
33,433
45,472
(12,039)
537,384
537,384
472,376
65,008
569,269
570,817
517,848
52,969
$ 61,920 $
122,872
380,245 $
257,373
472,897
$ 853,142
176
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Open Space Preservation District (OSPD) Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 3,024,693
$ 3,024,693
$ 3,051,349 $
26,656
Charges for services
85,627
85,627
12,272
(73,355)
Investment earnings
100,443
100,443
(158,772)
(259,215)
Other revenues
-
-
4,271
4,271
Total revenues
3,210,763
3,210,763
2,909,120
(301,643)
EXPENDITURES:
Operating:
Personnel
333,386
341,942
312,443
29,499
Operations and maintenance
424,288
535,088
474,973
60,115
Capital outlay
15,000
2,780,445
1,061,178
1,719,267
Total expenditures
772,674
3,657,475
1,848,594
1,808,881
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,438,089 (446,712) 1,060,526 1,507,238
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
(803,341) (803,341) (803,341)
(803,341) (803,341) (803,341)
$ 1,634,748 $ (1,250,053)
257,185 $ 1,507,238
6,578,028
$ 6,835,213
177
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Miscellaneous Grants Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 527,651 $ 10,072,395 $ 7,650,801 $ (2,421,594)
Total revenues 527,651 10,072,395 7,650,801 (2,421,594)
EXPENDITURES:
Operating:
Operations and maintenance 571,444 1,034,317 449,540 584,777
Capital improvement projects 90,000 9,074,712 7,626,665 1,448,047
Total expenditures 661,444 10,109,029 8,076,205 2,032,824
NET CHANGE IN FUND BALANCE (133,793) (36,634) (425,404) (388,770)
FUND BALANCE:
Beginning of year (16,143)
End of year $ (441,547)
178
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Park Dedication Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Developer fees
Total revenues
EXPENDITURES:
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 7,416 $
7,416
7,416 $ (54,383) $ (61,799)
- 62,515 62,515
7,416 8,132 716
- 2,665,836 1,983,047 682,789
- 2,665,836 1,983,047 682,789
$ 7,416 $ (2,658,420) (1,974,915) $ 683,505
4,052,579
$ 2,077,664
179
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Housing Successor Agency Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Total revenues
$ (17,705) $ (17,705)
(17,705) (17,705)
OTHER FINANCING SOURCES:
Transfers in 73,160 73,160 72,688 (472)
Total other financing sources 73,160 73,160 72,688 (472)
NET CHANGE IN FUND BALANCE $ 73,160 $ 73,160 54,983 $ (18,177)
FUND BALANCE:
Beginning of year 916,310
End of year $ 971,293
180
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Tourism Marketing Bureau Special Revenue Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Charges for services
Investment earnings
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 7,500 $
7,500
7,500 $ 2,629 $ (4,871)
- (1,421) (1,421)
7,500 1,208 (6,292)
10,054
10,054
7,458
2,596
10,054
10,054
7,458
2,596
$ (2,554) $
(2,554)
(6,250) $
(3,696)
70,039
$ 63,789
181
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Areawide Special Revenue Fund
For the Year Ended June 30, 2022
REVENUES:
Special assessments
Investment earnings
Fines and forfeitures
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital outlay
Capital improvement projects
Total expenditures
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
$ 7,260,857
$ 7,260,857
$ 7,351,963 $
91,106
-
-
(136,272)
(136,272)
-
-
55,978
55,978
7,260,857
7,260,857
7,271,669
10,812
5,720,464
5,799,793
5,490,599
309,194
12,088,537
12,612,438
12,133,569
478,869
180,904
258,907
112,424
146,483
1,268,849
559,750
520,173
39,577
19,258,754
19,230,888
18,256,765
974,123
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (11,997,897) (11,970,031) (10,985,096) 984,935
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
11,741,088 12,214,155 11,416,425 (797,730)
(577,597) (577,597) (577,597) -
11,163,491 11,636,558 10,838,828 (797,730)
$ (834,406) $ (333,473) (146,268) $ 187,205
5,429,048
$ 5,282,780
182
City of Santa Clarita
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, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Special assessments
Investment earnings
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 302,422 $
302,422
606,965 $ 304,242 $ (302,723)
- 1,326 1,326
606,965 305,568 (301,397)
507,143
507,143
129,749
377,394
507,143
507,143
129,749
377,394
$ (204,721) $
99,822
175,819 $
75,997
(277,320)
$ (101,501)
183
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Vista Canyon (VC) Wastewater Standby District Special Revenue Fund
For the Year Ended June 30, 2022
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 1,147,285
$ 1,147,285
$ 865,142 $
(282,143)
Investment earnings
44,805
44,805
(73,113)
(117,918)
Total revenues
1,192,090
1,192,090
792,029
(400,061)
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
30,026 30,026 5,093 24,933
30,026 30,026 5,093 24,933
$ 1,162,064 $ 1,162,064
786,936 $ (375,128)
2,696,254
$ 3,483,190
184
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
General Capital Projects Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:
Capital improvement projects $ 581,049 $ 1,438,359 $ 648,785 $ 789,574
Total expenditures 581,049 1,438,359 648,785 789,574
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
(581,049) (1,438,359) (648,785) 789,574
581,049 1,079,565 959,705 (119,860)
581,049 1,079,565 959,705 (119,860)
$ - $ (358,794) 310,920 $ 669,714
358,794
$ 669,714
185
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Civic Arts Projects Capital Projects Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings $
- $
- $
(5,960) $
(5,960)
Total revenues
-
-
(5,960)
(5,960)
EXPENDITURES:
Capital improvement projects
40,000
440,437
76,158
364,279
Total expenditures
40,000
440,437
76,158
364,279
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(40,000)
(440,437)
(82,118)
358,319
OTHER FINANCING SOURCES:
Transfers in
100,000
100,000
-
Total other financing sources
-
100,000
100,000
-
NET CHANGE IN FUND BALANCE $
(40,000) $
(340,437)
17,882 $
358,319
FUND BALANCE:
Beginning of year
354,926
End of year
$
372,808
186
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2022
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Other revenues
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
- $ 293 $ 293
- 490,488 490,488
- 490,781 490,781
4,479,210 4,479,210 4,479,209
4,479,210 4,479,210 4,479,209
1
1
(4,479,210) (4,479,210) (3,988,428) 490,782
4,479,210 4,479,210 4,479,209 (1)
4,479,210 4,479,210 4,479,209 (1)
$ - $ - 490,781 $ 490,781
603,395
$ 1,094,176
187
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188
INTERNAL SERVICE FUNDS
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.
189
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190
City of Santa Clarita
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
ASSETS
Current assets:
Cash and investments
Interest receivable
Prepaid items
Total current assets
Noncurrent assets:
Net pension asset
Net OPEB asset
Capital assets, being depreciated, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
Deferred outflows related to OPEB
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Compensated absences, due within one year
Claims and judgements, due within one year
Total current liabilities
Noncurrent liabilities:
Compensated absences payable, due in more than one year
Claims and judgements, due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to OPEB
Total deferred inflows of resources
NET POSITION
Investment in capital assets
Unrestricted
Total net position
Self
Computer
Vehicle
Insurance
Replacement
Replacement
Total
$ 7,010,700
$ 2,634,134
$ 4,657,536
$ 14,302,370
14,370
4,843
8,564
27,777
17,564
-
-
17,564
7,042,634
2,638,977
4,666,100
14,347,711
1,590
-
-
1,590
6,213
-
-
6,213
-
173,541
1,454,965
1,628,506
7,803
173,541
1,454,965
1,636,309
7,050,437
2,812,518
6,121,065
15,984,020
43,346
-
-
43,346
31,963
-
-
31,963
75,309
-
-
75,309
430,126 26,506
- 456,632
11,116 -
- 11,116
1,714,712 -
- 1,714,712
2,155,954 26,506
- 2,182,460
22,054 -
- 22,054
2,930,648 -
- 2,930,648
81,886 - - 81,886
148,228 - - 148,228
- 173,541 1,454,965 1,628,506
1,868,862 2,612,471 4,666,100 9,147,433
$ 1,868,862 $ 2,786,012 $ 6,121,065 $ 10,775,939
191
City of Santa Clarita
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2022
Self Computer Vehicle
Insurance Replacement Replacement Total
OPERATING REVENUES:
Charges for services
$ 4,267,827 $
804,311 $
480,118 $
5,552,256
Other revenue
-
-
79
79
Total operating revenues
41267,827
804,311
480,197
5,552,335
OPERATING EXPENSES:
Administration and personnel services
1,176,948
49,603
-
1,226,551
Services and supplies
2,284,167
314,550
-
2,598,717
Depreciation expense
-
70,376
294,472
364,848
Total operating expenses
31461,115
434,529
294,472
4,190,116
NET OPERATING INCOME
806,712
369,782
185,725
1,362,219
NONOPERATING REVENUE (EXPENSES):
Investment (loss)
(172,525)
(58,843)
(103,444)
(334,812)
Total nonoperating expenses
(172,525)
(58,843)
(103,444)
(334,812)
CHANGE IN NET POSITION
634,187
310,939
82,281
1,027,407
NET POSITION:
Beginning of the year
1,234,675
2,475,073
6,038,784
9,748,532
End of the year
$ 1,868,862 $
2,786,012 $
6,121,065 $
10,775,939
192
City of Santa Clarita
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash paid for claims and judgments
Net cash provided by operating activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Net cash (used in) capital and related fmancing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment loss
Net cash (used in) investing activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:
Depreciation
Change in assets and liabilities:
(Increase) decrease in prepaid items
(Increase) decrease in net pension asset
(Increase) decrease in net OPEB asset
(Increase) decrease in deferred outflows related to pensions
(Increase) decrease in deferred outflows related to OPEB
Increase in accounts payable and accrued liabilities
Increase in compensated absences
Increase in claims and judgements
Increase (decrease) in deferred inflows related to pensions
Increase (decrease) in deferred inflows related to OPEB
Total adjustments
Net cash provided by (used in) operating activities
Self
Computer
Vehicle
Insurance
Replacement
Replacement
Total
$ 4,267,827 $
804,311
$ 480,197 $
5,552,335
(1,887,474)
(366,537)
(1,309)
(2,255,320)
(1,201,173)
-
-
(1,201,173)
(1,765,286)
-
-
(1,765,286)
(586,106)
437,774
478,888
330,556
-
(21,152)
(68,921)
(90,073)
-
(21,152)
(68,921)
(90,073)
(175,873)
(58,981)
(102,833)
(337,687)
(175,873)
(58,981)
(102,833)
(337,687)
(761,979)
357,641
307,134
(97,204)
7,772,679
2,276,493
4,350,402
14,399,574
$ 7,010,700 $
2,634,134
$ 4,657,536 $
14,302,370
$ 806,712 $
369,782 $
185,725 $
1,362,219
-
70,376
294,472
364,848
(5,507)
-
-
(5,507)
31,513
-
-
31,513
(129,172)
-
-
(129,172)
20,861
-
-
20,861
(8,026)
-
-
(8,026)
403,861
(2,384)
(1,309)
400,168
6,985
-
-
6,985
(1,765,286)
-
-
(1,765,286)
79,957
-
-
79,957
(28,004)
-
-
(28,004)
(1,392,818)
67,992
293,163
(1,031,663)
$ (586,106) $
437,774 $
478,888 $
330,556
193
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194
CUSTODIAL FUNDS
Custodial Funds are used to account for assets for the benefit of organizations or other governments that are not part of the
City. In addition, the assets are not derived from the City's provision of goods or services to those individuals, organizations,
or other governments.
Assessment District No. 92-2 (Golden Valley Road) — To account for monies held to account for debt service requirements
of Assessment District No. 92-2.
Assessment District No. 99-1 (Vermont Everett) — To account for monies held to account for debt service requirements of
Assessment District No. 99-1.
Community Facilities District No. 2002-1 (Valencia Town Center) — To account for monies held to account for debt
service requirements for Community Facilities District No. 2002-1
Community Facilities District No. 2016-1 (Vista Canyon) — 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 is holding cash.
195
City of Santa Clarita
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
ASSETS
Cash and investments
Interest receivable
Contributions receivable
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Total liabilities
NET POSITION
Restricted for:
Individuals, organizations, and other governments
Assessment Assessment
District District
No.92-2 No.99-1
Community
Facilities
District
No 2002-1
$ 258,179 $ 147,004 $ 452,383
475 270 829
1,636 6,111 667,904
52,886 59,729 1,650,228
313,176 213,114 2,771,344
1,069 - 313
1,069 - 313
$ 312,107 $ 213,114 $ 2,771,031
196
City of Santa Clarita
Combining Statement of Fiduciary Net Position (Continued)
Custodial Funds
June 30, 2022
ASSETS
Cash and investments
Interest receivable
Contributions receivable
Cash and investments with fiscal agents
Total assets
LIABILITIES
Accounts payable
Total liabilities
NET POSITION
Restricted for:
Individuals, organizations, and other governments
Santa Clanta
Community
Watershed and
Facilities
Recreation
District
Conservancy
No 2016-1
Authority Total
$ 177,187 $ 15,997 $ 1,050,750
323 - 1,897
235,455 - 911,106
1,164,601 - 2,927,444
1,577,566 15,997 4,891,197
2,463 - 3,845
2,463 - 3,845
$ 1,575,103 $ 15,997 $ 4,887,352
197
City of Santa Clarita
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the Year Ended June 30, 2022
ADDITIONS:
Special assessment from property owners
Net investment loss
Total additions
DEDUCTIONS:
Contractual services
Payments for debt services
Payments to other governments
Total deductions
Change in net position
NET POSITION:
Beginning of year, as restated (Note 22)
End of year
Assessment
District
No.92-2
Assessment
District
No.99-1
Community
Facilities
District
No 2002-1
$ 81,332 $
79,916 $
1,335,757
(6,063)
(3,381)
(20,889)
75,269
76,535
1,314,868
7,171
5,481
2,579
49,248
37,100
1,290,125
6,045
6,125
6,243
62,464
48,706
1,298,947
12,805
27,829
15,921
299,302
185,285
2,755,110
$ 312,107 $
213,114 $
2,771,031
198
City of Santa Clarita
Combining Statement of Changes in Fiduciary Net Position (Continued)
Custodial Funds
For the Year Ended June 30, 2022
ADDITIONS:
Special assessment
Net investment loss
Total additions
DEDUCTIONS:
Contractual services
Payments for debt services
Payments to other governments
Total deductions
Change in net position
NET POSITION:
Beginning of year, as restated (Note 22)
End of year
Santa Clarita
Community
Watershed and
Facilities
Recreation
District
Conservancy
No 2016-1
Authority
Total
$ 802,662
$ - $
2,299,667
(10,850)
7
(41,176)
791,812
7
2,258,491
14,837
699
30,767
785,600
-
2,162,073
-
-
18,413
800,437
699
2,211,253
(8,625)
(692)
47,238
1,583,728
16,689
4,840,114
$ 1,575,103
$ 15,997 $
4,887,352
199
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200
STATISTICAL SECTION
(Unaudited)
201
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202
City of Santa Clarita
Statistical Section
(Unaudited)
This part of the City of Santa Clarita's annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information says about
the City's overall financial health.
Contents
Financial Trends
These tables contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These tables contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the
future.
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.
Operating Information
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the
activities it performs.
Sources: City of Santa Clarita Finance Division
Page
204 - 213
214 - 229
230 - 236
237
238 - 242
203
City of Santa Clarita
Net Position by Component (1)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Fiscal Year
21-22
20-21
19-20
18-19
17-18
Governmental Activities
Net investment in capital assets
$1,080,862,181
$1,032,579,113
$ 984,052,712
$ 920,036,752
$ 895,056,642
Restricted for:
Capital projects
-
-
-
-
-
Specific projects and programs
152,349,197
147,556,902
146,874,629
119,375,331
113,286,625
Total restricted
152,349,197
147,556,902
146,874,629
119,375,331
113,286,625
Unrestricted
161,500,700
126,571,370
80,879,095
122,991,202
85,155,060
Total governmental activities net position
$1,394,712,078
$1,306,707,385
$1,211,806,436
$1,162,403,285
$1,093,498,327
Business -Type Activities
Net investment in capital assets $ 95,597,321 $ 88,023,510 $ 80,308,956 $ 83,906,440 $ 79,199,471
Unrestricted 8,917,312 6,895,650 (1,465,963) 269,116 (888,318)
Total business -type activities net position $ 104,514,633 $ 94,919,160 $ 78,842,993 $ 84,175,556 $ 78,311,153
Primary Government
Net investment in capital assets
$1,176,459,502
$1,120,602,623
$1,064,361,668
$1,003,943,192
$ 974,256,113
Restricted
152,349,197
147,556,902
146,874,629
119,375,331
113,286,625
Unrestricted
170,418,012
133,467,020
79,413,132
123,260,318
84,266,742
Total primary government net position
$1,499,226,711
$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.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
204
City of Santa Clarita
Net Position by Component(') (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Fiscal Year
16-17
15-16
14-15
13-14
12-13
Governmental Activities
Net investment in capital assets
$ 867,144,998
$ 810,324,041
$ 818,817,043
$ 799,926,613
$ 738,271,282
Restricted for:
Capital projects
-
-
-
-
14,292,447
Specific projects and programs
87,272,723
70,773,322
73,541,304
71,643,713
54,229,493
Total restricted
87,272,723
70,773,322
73,541,304
71,643,713
68,521,940
Unrestricted
105,514,664
115,356,272
79,211,600
52,551,033
65,706,424
Total governmental activities net position
$1,059,932,385
$ 996,453,635
$ 971,569,947
$ 924,121,359
$ 872,499,646
Business -Type Activities
Net investment in capital assets $ 79,589,102 $ 76,687,260 $ 78,495,871 $ 83,296,545 $ 76,561,407
Unrestricted (1,202,362) 3,101,763 2,766,972 2,250,491 3,835,316
Total business -type activities net position $ 78,386,740 $ 79,789,023 $ 81,262,843 $ 85,547,036 $ 80,396,723
Primary Government
Net investment in capital assets
$ 946,734,100
$ 887,011,301
$ 897,312,914
$ 883,223,158
$ 814,832,689
Restricted
87,272,723
70,773,322
73,541,304
71,643,713
68,521,940
Unrestricted
104,312,302
118,458,035
81,978,572
54,801,524
69,541,740
Total primary government net position
$1,138,319,125
$1,076,242,658
$1,052,832,790
$1,009,668,395
$ 952,896,369
205
City of Santa Clarita
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2022
(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
Business -Type Activities
Charges for services:
Transit
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government revenues
Fiscal Year
21-22 20-21 19-20 18-19 17-18
$ 14,728,358 $ 51,594,712 $ 54,710,526 $ 62,309,457 $ 53,928,438
30,936,129
35,128,997
29,907,832
27,757,002
27,232,724
30,493,258
17,239,899
33,663,857
20,772,164
14,771,925
23,989,989
15,107,049
16,047,345
17,585,165
23,472,469
12,203,347
11,435,676
8,942,864
7,214,786
6,957,438
42,179,104
13,865,065
12,862,529
12,622,824
1,082,836
21,432,943
21,543,801
21,043,711
20,630,522
19,259,333
2,743,559
3,742,582
3,549,649
2,589,767
1,638,960
$ 178,706,687 $ 169,657,781 $ 180,728,313 $ 171,481,687 $ 148,344,123
31,342,873 27,898,955 31,060,676 32,065,240 28,309,870
31,342,873 27,898,955 31,060,676 32,065,240 28,309,870
$ 210,049,560 $ 197,556,736 $ 211,788,989 $ 203,546,927 $ 176,653,993
$ 916,671
$ 9,254,707
$ 8,215,989
$ 8,547,181
$ 10,007,154
1,658,867
1,303,759
1,484,005
1,937,603
1,429,900
21,724,121
3,627,549
12,201,244
14,669,328
15,792,197
11,352,114
16,419,310
3,635,790
6,344,242
8,306,076
3,073,196
1,899,854
1,552,869
1,704,920
1,901,897
33,555,637
31,252,912
30,575,191
29,338,661
27,090,508
38,093,703
44,524,768
22,066,816
13,574,920
9,259,079
68,626,540
42,849,916
41,462,296
59,565,349
31,807,581
$ 179,000,849 $ 151,132,775 $ 121,194,200 $ 135,682,204 $ 105,594,392
5,936,598
5,799,364
6,785,178
7,662,186
6,987,488
12,087,130
29,444,844
13,405,112
15,292,991
10,226,946
13,402,891
9,036,527
5,701,142
10,434,282
3,102,269
31,426,619
44,280,735
25,891,432
33,389,459
20,316,703
$ 210,427,468 $ 195,413,510 $ 147,085,632 $ 169,071,663 $ 125,911,095
Source: City of Santa Clarita, Administrative Services Department - Finance Division
206
City of Santa Clarita
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(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
Business -Type Activities
Charges for services:
Transit
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government revenues
Fiscal Year
16-17 15-16 14-15 13-14 12-13
$ 44,390,099 $ 39,155,006 $ 46,224,813 $ 41,807,284 $ 35,921,943
25,231,712
23,778,931
22,235,368
22,187,434
19,940,098
23,563,825
38,223,035
36,103,144
26,183,862
28,651,261
16,224,154
15,594,958
22,619,337
22,550,301
21,809,820
7,057,301
10,505,906
5,720,237
6,193,101
7,214,293
1,815,637
-
-
-
-
18,833,113
18,342,933
18,072,657
17,561,539
15,163,864
1,378,888
2,194,181
1,827,094
1,872,832
1,992,574
$ 138,494,729 $ 147,794,950 $ 152,802,650 $ 138,356,353 $ 130,693,853
29,858,499 28,127,407 28,062,668 26,819,161 25,653,753
29,858,499 28,127,407 28,062,668 26,819,161 25,653,753
$ 168,353,228 $ 175,922,357 $ 180,865,318 $ 165,175,514 $ 156,347,606
$ 6,740,507 $ 22,914,059 $ 26,783,616 $ 31,970,148 $ 24,323,027
1,231,974
1,162,551
1,605,059
1,847,403
2,284,334
11,549,806
16,407,616
13,056,586
12,463,046
9,943,014
6,191,011
8,142,336
4,525,662
4,390,686
4,371,888
1,906,079
1,843,296
1,774,482
1,961,243
1,611,184
25,044,704
-
-
-
-
5,977,971
7,687,397
12,561,608
19,421,199
9,061,950
55,220,052
23,629,474
30,107,231
22,530,841
33,585,797
$ 113,862,104 $ 81,786,729 $ 90,414,244 $ 94,584,566 $ 85,181,194
7,231,136
7,546,433
6,779,579
7,587,497
6,863,086
8,459,236
9,153,499
8,228,348
8,984,127
8,579,209
9,138,643
3,504,305
1,423,440
10,804,747
8,513,238
24,829,015
20,204,237
16,431,367
27,376,371
23,955,533
$ 138,691,119 $ 101,990,966 $ 106,845,611 $ 121,960,937 $ 109,136,727
207
City of Santa Clarita
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Fiscal Year
21-22
20-21
19-20
18-19
17-18
Net Revenues (expenses):
Governmental activities $
294,162
$ (18,525,006)
$ (59,534,113)
$ (35,799,482)
$ (42,749,731)
Business -type activities
83,746
16,381,780
(5,169,244)
1,324,219
(7,993,167)
Total net revenues (expenses) $
377,908
$ (2,143,226)
$ (64,703,357)
$ (34,475,263)
$ (50,742,898)
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes $
49,476,922
$ 43,197,889
$ 36,621,145
$ 38,546,183
$ 37,252,523
Property taxes
42,113,398
52,981,738
46,420,350
43,761,925
42,284,749
Franchise taxes
10,883,225
9,493,742
8,604,265
8,369,481
8,523,791
Real property transfer taxes
2,569,074
2,010,033
1,418,026
1,227,947
1,320,018
Transient occupancy taxes
4,874,977
2,275,383
2,726,113
3,352,776
3,489,281
Unrestricted revenue in lieu of motor vehicle taxes
349,171
173,463
207,931
147,752
162,103
Unrestricted investment earnings
(4,773,346)
634,957
12,311,467
12,528,843
591,177
Miscellaneous revenue
4,993,518
2,311,282
472,227
1,206,740
2,661,916
Gain on sale of capital asset
-
-
2,050
(1,600)
10,935
Transfers
(8,097,818)
347,468
153,690
(4,435,608)
(5,924,278)
Reversal of Allowance for Notes to RDA
Successor Agency
-
-
-
-
-
Capital Contributions
-
-
-
-
-
Total governmental activities
102,389,121
113,425,955
108,937,264
104,704,439
90,372,215
Business -type activities
Unrestricted investment earnings
(185,016)
41,855
(9,629)
32,613
(1,242)
Gain on sale of capital asset
36,900
-
-
71,963
20,238
Miscellaneous revenue
1,562,025
-
-
-
-
Transfers
8,097,818
(347,468)
(153,690)
4,435,608
5,924,278
Total business -type activities
9,511,727
(305,613)
(163,319)
4,540,184
5,943,274
Total primary government
$ 111,900,848
$ 113,120,342
$ 108,773,945
$ 109,244,623
$ 96,315,489
Change in Net Position
Governmental activities
$ 102,683,283
$ 94,900,949
$ 49,403,151
$ 68,904,957
$ 47,622,484
Business -type activities
9,595,473
16,076,167
(5,332,563)
5,864,403
(2,049,893)
Total primary government
$ 112,278,756
$ 110,977,116
$ 44,070,588
$ 74,769,360
$ 45,572,591
Source: City of Santa Clarita, Administrative Services Department - Finance Division
208
City of Santa Clarita
Changes in Net Position (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(accrual basis of accounting)
Fiscal Year
16-17
15-16
14-15
13-14
12-13
Net Revenues (expenses):
Governmental activities
$ (24,060,399)
$ (66,008,221)
$ (62,388,406)
$ (43,771,787)
$ (82,355,724)
Business -type activities
(5,029,484)
(7,923,170)
(11,631,301)
557,210
(9,906,515)
Total net revenues (expenses)
$ (29,089,883)
$ (73,931,391)
$ (74,019,707)
$ (43,214,577)
$ (92,262,239)
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes $
36,147,727
$ 37,807,385
$ 34,355,412
$ 33,480,522
$ 32,057,358
Property taxes
39,924,749
40,072,597
38,556,890
35,652,080
32,341,369
Franchise taxes
8,208,347
8,392,789
8,512,818
7,796,070
7,141,953
Real property transfer taxes
1,275,363
1,383,473
1,169,780
947,470
706,180
Transient occupancy taxes
3,639,264
3,813,437
3,124,904
2,781,527
2,556,774
Unrestricted revenue in lieu of motor vehicle taxes
144,665
129,053
85,703
86,531
91,062
Unrestricted investment earnings
1,052,254
4,142,959
2,240,594
2,090,322
(82,870)
Miscellaneous revenue
737,513
1,080,771
678,937
781,986
310,676
Gain on sale of capital asset
11,711
459,709
27,410
18,174
-
Transfers
(3,602,443)
(6,390,264)
(7,329,516)
(5,692,032)
(5,187,224)
Reversal of Allowance for Notes to RDA
Successor Agency
-
12,633,832
-
-
Capital Contributions
-
-
15,780,230
-
-
Total governmental activities
87,539,150
90,891,909
109,836,994
77,942,650
69,935,278
Business -type activities
Unrestricted investment earnings
(28,735)
59,086
17,592
4,791
29,660
Gain on sale of capital asset
53,223
-
-
-
-
Miscellaneous revenue
-
-
-
-
-
Transfers
3,602,443
6,390,264
7,329,516
5,692,032
5,187,224
Total business -type activities
3,626,931
6,449,350
7,347,108
5,696,823
5,216,884
Total primary government
$ 91,166,081
$ 97,341,259
$ 117,184,102
$ 83,639,473
$ 75,152,162
Change in Net Position
Governmental activities
$ 63,478,751
$ 24,883,688
$ 47,448,588
$ 34,170,863
$ (12,420,446)
Business -type activities
(1,402,553)
(1,473,820)
(4,284,193)
6,254,033
(4,689,631)
Totalprimary government
$ 62,076,198
$ 23,409,868
$ 43,164,395
$ 40,424,896
$ (17,110,077)
209
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2022
(modified accrual basis of accounting)
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
■ All Other
Governmental Funds
39%
Fiscal Year
21-22 20-21 19-20 18-19 17-18
$ 15,030,511 $ 7,474,892 $ 9,810,973 $ 12,050,141 $ 12,390,885
4,655,939 9,644,574 23,063,669 - -
146,922,006 110,906,093 97,293,470 120,981,128 88,674,761
62,141,362 59,968,580 60,273,125 58,930,970 47,116,235
$ 228,749,818 $ 187,994,139 $ 190,441,237 $ 191,962,239 $ 148,181,881
$ 344,869 $ 491,504 $ 575,276 $ 772,627 $ 5,882
147,460,244 123,614,422 112,631,199 108,394,699 113,286,625
783 832 9,277 13,460 15,008
1,081,549 755,174 791,914 1,040,181 1,117,165
(1,820,510) (869,803) (3,127,904) (3,266,496) (6,786,531)
$ 147,066,935 $ 123,992,129 $ 110,879,762 $ 106,954,471 $ 107,638,149
FUND BALANCES
Fiscal Year Ended June 30, 2022
rM
General Fund
61%
210
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
160
140
120
00
N
.280
260
c
40
20
0
City of Santa Clarita
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(modified accrual basis of accounting)
Fiscal Year
16-17 15-16 14-15 13-14 12-13
$ 15,742,945 $ 11,108,252 $ 11,024,338 $ 11,519,143 $ 11,910,059
79,367,084 79,367,084 55,336,807 51,718,096 47,106,536
53,905,237 50,669,580 50,141,486 45,654,640 35,320,706
$ 149,015,266 $ 141,144,916 $ 116,502,631 $ 108,891,879 $ 94,337,301
$ 976,841 $
1,134,103
$ 1,455,067 $
606,996
$ 670,612
86,664,536
86,240,243
85,763,293
84,268,720
68,957,999
14,000
14,000
14,000
612,829
716,826
2,151,360
1,881,728
1,843,822
3,412,127
4,466,367
(5,897,790)
(6,975,198)
(8,633,303)
(9,300,647)
(10,665,597)
$ 83,908,947 $ 82,294,876 $ 80,442,879 $ 79,600,025 $ 64,146,207
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
Fiscal Year
211
City of Santa Clarita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2022
(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
Redemption of district credits
Total Expenditures
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses)
Revenue bonds issued/issuance premium
Proceeds of long-term debt
Proceeds from capital lease
Transfers in
Transfers out
Issuance of district credits
Total Other Financing Sources (Uses)
Net change in fund balances
Fund balances - Beginning of Year, as restated
Fund balances - End of Year
Debt service as percentage of noncapital expenditures
Fiscal Year
21-22
20-21
19-20
18-19
17-18
$ 123,417,159
$ 110,132,248 $
95,997,830 $
95,406,064
$ 93,032,465
36,374,012
35,634,980
-
-
-
9,724,390
11,498,980
7,538,878
9,951,586
7,688,342
4,674,125
11,094,312
2,917,250
6,458,182
9,888,734
(7,617,836)
664,575
11,777,753
12,045,344
595,650
70,217,168
43,058,715
33,746,890
36,086,192
36,491,705
1,942,026
1,702,622
1,736,201
1,851,190
1,372,687
12,681,139
6,949,375
42,052,534
42,117,270
41,793,226
5,639,891
13,984,800
3,508,593
1,677,809
1,744,075
257,052,074
234,720,607
199,275,929
205,593,637
192,606,884
15,656,486
46,060,921
50,929,600
59,638,451
50,728,642
30,189,992
35,570,621
30,511,022
28,342,578
27,217,567
25,551,120
90,316,078
72,953,711
51,343,366
57,213,646
18,894,253
14,917,730
13,846,768
15,450,815
21,589,318
13,146,687
11,556,377
8,709,340
7,344,064
6,988,331
41,749,125
13,885,978
13,100,419
12,823,905
1,162,647
-
67,889
-
-
-
54,121,315
20,702,698
4,213,593
5,053,670
12,083,887
2,363,121
2,315,371
2,482,109
2,833,260
2,138,803
2,857,672
3,363,625
2,901,257
2,520,153
1,647,842
-
278,843
-
-
-
204,529,771
239,036,131
199,647,819
185,350,262
180, 770,683
52,522,303
(4,315,524)
(371,890)
20,243,375
11,836,201
-
14,270,000
-
25,850,000
15,848,271
-
225,409
-
1,463,083
(35,099)
-
164,970
-
-
-
19,599,811
43,175,925
20,787,975
56,075,180
25,690,566
(27,697,629)
(42,855,511)
(18,011,796)
(60,534,955)
(30,444,125)
(8,097,818)
14,980,793
2,776,179
22,853,308
11,059,613
44,424,485
10,665,269
2,404,289
43,096,683
22,895,814
331,392,268
258,224,316
255,820,027
232,924,213
223,439,792
$ 375,816,753
$ 268,889,585 $
258,224,316 $
276,020,896
$ 246,335,606
3.51%
4.12%
3.54%
3.69%
3.10%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
212
City of Santa Clarita
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years Ended June 30, 2022
(modified accrual basis of accounting)
Fiscal Year
16-17
15-16
14-15
13-14
12-13
Revenues:
Taxes
$ 89,340,115
$ 91,598,734
$ 85,789,556
$ 80,285,660
$ 73,972,006
Special assessments
-
-
-
-
-
Licenses and permits
7,408,357
7,283,898
5,567,280
5,366,972
4,246,957
Developer fees
4,211,890
6,272,799
10,764,554
2,600,997
15,828,388
Investment income
1,030,146
3,937,618
2,026,507
1,911,491
1,702,006
Intergovernmental
23,922,361
31,380,753
31,953,692
34,355,734
27,452,216
Fines and forfeitures
1,117,620
973,753
1,261,752
1,661,157
2,114,166
Service charges
36,639,646
36,828,067
37,738,754
42,156,582
36,311,324
Other revenues
690,974
1,789,724
511,117
5,943,608
332,146
Total Revenues
164,361,109
180,065,346
175,613,212
174,282,201
161,959,209
Expenditures:
Current:
General government
41,138,676
35,969,981
43,196,168
36,294,205
35,433,288
Public safety
25,214,091
23,777,171
22,188,641
22,137,338
19,894,859
Public works
43,459,620
21,327,662
36,082,625
24,385,865
27,968,407
Recreation and community service
20,446,596
37,937,050
21,007,651
20,498,108
19,824,550
Community development
6,583,484
10,673,993
5,883,441
6,185,263
7,252,424
Neighborhood services
1,667,058
-
-
-
-
Administration and personnel services
-
-
-
-
-
Capital outlay
9,759,258
10,562,953
23,224,180
36,580,589
23,837,533
Debt service:
Principal
2,167,429
2,852,140
1,992,479
1,837,174
1,750,538
Interest
1,237,357
4,539,815
1,850,703
1,885,546
2,039,144
Redemption of district credits
-
-
5,105,402
-
14,368,419
Total Expenditures
151,673,569
147,640,765
160,531,290
149,804,088
152,369,162
Excess of Revenues Over (Under) Expenditures
12,687,540
32,424,581
15,081,922
24,478,113
9,590,047
Other Financing Sources (Uses)
Revenue bonds issued/issuance premium
-
32,997,352
-
-
-
Proceeds of long-term debt
-
(32,907,353)
-
-
-
Proceeds from capital lease
-
-
-
-
-
Transfers in
8,046,713
11,940,563
7,850,640
9,757,447
9,069,495
Transfers out
(11,249,832)
(17,960,861)
(14,478,956)
(15,524,498)
(14,256,719)
Issuance of district credits
-
-
-
11,297,334
12,270,335
Total Other Financing Sources (Uses)
(3,203,119)
(5,930,299)
(6,628,316)
5,530,283
7,083,111
Net change in fund balances
9,484,421
26,494,282
8,453,606
30,008,396
16,673,158
Fund balances - Beginning of Year
196,945,510
188,491,904
158,483,508
141,810,350
100,653,413
Fund balances - End of Year $
206,429,931 $
214,986,186 $
166,937,114 $
171,818,746 $
117,326,571
Debt service as percentage of noncapital expenditures
5.72%
2.80%
3.26%
2.95%
4.40%
213
City of Santa Clarita
Assessed Values (1) and Actual Values of Taxable Property
Last Ten Fiscal Years
State Assessed Locally Assessed
Secured (Utility) Secured
Fiscal Personal Personal Other
Year Land Improvements Property Total Land Improvements Property Exemptions Total
2013
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
2014
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
2015
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
2016
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
2017
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
2018
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
2019
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
2020
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
2021
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
2022
2,221,125
2,208,225
4,429,350
16,732,539,639
21,591,409,056
168,868,456
(971,189,679)
37,521,627,472
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2022
PERSONAL
PROPERTY, 1.90%
LAND, 42.51 %
IMPROVEMENTS,
55.59%
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 2021-22
214
City of Santa Clarita
Assessed Values (1) and Actual Values of Taxable Property (Continued)
Last Ten Fiscal Years
Locally
Assessed
Unsecured
Before
Fiscal
Personal
Other
Other
Year
Improvements
Property
Exemptions
Total
Exemptions
2013
349,415,601
534,947,944
(13,693,787)
870,669,758
21,399,181,358
2014
329,350,845
541,533,568
(15,907,716)
854,976,697
24,698,048,493
2015
339,544,656
561,740,289
(13,152,888)
888,132,057
26,578,658,416
2016
299,024,341
569,926,540
(15,283,837)
853,667,044
27,817,244,778
2017
265,891,622
547,111,240
(15,791,822)
797,211,040
29,050,407,444
2018
280,824,664
549,107,476
(10,383,140)
819,549,000
31,420,665,028
2019
274,390,510
584,621,318
(10,543,790)
848,468,038
33,309,473,742
2020
275,047,748
584,844,131
(9,114,469)
850,777,410
36,074,068,573
2021
287,998,801
605,666,637
(8,808,819)
884,856,619
38,085,441,770
2022
287,812,025
580,588,788
(3,743,026)
864,657,787
39,365,647,314
45,000
40,000
35,000
30,000
r 25,000
O
20,000
C
15,000
10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
Totals
HOME -
Taxable
%
TOTAL
OWNER
Assessed
Incr.
DIRECT
PROPERTY
Value
(Decr.)
RATE (2)
TAX RELIEF
20,985,441,963
-0.87%
0.07183%
216,163,460
24,269,472,731
15.65%
0.09170%
236,577,388
26,111,942,635
7.59%
0.09163%
232,799,644
27,330,863,338
4.67%
0.09169%
230,402,082
28,685,821,032
4.96%
0.09259%
226,031,427
30,727,345,419
7.12%
0.09111%
228,373,713
32,480,968,597
5.71%
0.09126%
225,813,184
35,174,818,421
8.29%
0.08989%
230,072,192
36,983,412,434
5.14%
0.09054%
223,881,831
38,390,714,609
3.81%
0.08972%
220,341,312
12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
Fiscal Year
u
215
City of Santa Clarita
Redevelopment Agency (1)
Assessed Values (2) and Actual Values of Taxable Property
Last Ten Fiscal Years
State Assessed
Secured (Utility)
Fiscal
Personal
Year
Land
Improvements
Property
Total
2013
N/A
N/A
N/A
N/A
2014
N/A
N/A
N/A
N/A
2015
N/A
N/A
N/A
N/A
2016
N/A
N/A
N/A
N/A
2017
N/A
N/A
N/A
N/A
2018
N/A
N/A
N/A
N/A
2019
N/A
N/A
N/A
N/A
2020
N/A
N/A
N/A
N/A
2021
N/A
N/A
N/A
N/A
2022
N/A
N/A
N/A
N/A
Locally Assessed
Secured
Personal
Other
Land
Improvements
Property
Exemptions
Total
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
(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% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
Source: County of Los Angeles, Auditor-Controller/Tax Division
216
City of Santa Clarita
Redevelopment Agency (1)
Assessed Values (2) and Actual Values of Taxable Property (Continued)
Last Ten Fiscal Years
Locally Assessed
Unsecured
Fiscal
Personal
Other
Year
Improvements
Property
Exemptions
Totals
2013
N/A
N/A
N/A
N/A
2014
N/A
N/A
N/A
N/A
2015
N/A
N/A
N/A
N/A
2016
N/A
N/A
N/A
N/A
2017
N/A
N/A
N/A
N/A
2018
N/A
N/A
N/A
N/A
2019
N/A
N/A
N/A
N/A
2020
N/A
N/A
N/A
N/A
2021
N/A
N/A
N/A
N/A
2022
N/A
N/A
N/A
N/A
Totals
Totals
Before
Base Year
Base Year
Taxable
Assessed
Value
Value
Growth
Home
Owner
Property
Tax Relief
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
217
City of Santa Clarita
Assessed Values —Taxable Property
Last Ten Fiscal Years
Fiscal Year
Category
21-22
20-21
19-20
18-19
17-18
Residential
$30,326,102,286
$29,068,019,284
$27,571,753,581
$25,140,365,171
$23,734,569,687
Commercial
3,980,147,941
3,866,268,970
3,681,744,410
3,557,018,366
3,399,444,104
Industrial
2,031,709,683
1,955,686,889
1,878,969,596
1,861,078,681
1,790,582,919
Irrigated
3,678,125
3,375,991
3,341,172
3,707,035
2,993,570
Dry farm
-
-
-
-
-
Recreational
109,898,400
118,115,005
116,868,740
113,347,606
106,578,193
Institutional
276,997,197
259,899,765
233,475,135
230,449,000
193,500,837
Government
804,413
1,357,829
1,323,707
371,122
363,846
Miscellaneous
356,649
352,996
346,079
339,297
315,717
Vacant land
644,262,314
677,706,729
702,751,187
593,951,571
554,513,132
SBE Nommitary
4,429,350
4,284,643
4,284,643
4,576,418
4,576,418
Possessory Int.
147,670,464
143,487,714
129,182,761
127,296,292
120,357,965
Unsecured
864,657,787
884,856,619
850,777,410
848,468,038
819,549,000
Unknown
-
-
-
-
31
Totals
$38,390,714,609
$36,983,412,434
$35,174,818,421
$32,480,968,597
$30,727,345,419
35,000
30,000
y 25,000
c
0
20,000
c
15,000
10,000
5,000
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
Fiscal Year
o Residential
® Commercial
0 Industrial
0 Vacant land
0 All others
218
City of Santa Clarita
Assessed Values —Taxable Property (Continued)
Last Ten Fiscal Years
Fiscal Year
Category
16-17
15-16
14-15
13-14
12-13
Residential
$21,784,467,001
$20,809,579,112
$19,755,522,402
$18,138,258,224
$14,971,655,728
Commercial
3,248,599,972
3,059,958,633
2,952,772,231
2,847,760,176
2,794,405,083
Industrial
1,706,030,432
1,799,119,742
1,642,718,866
1,561,091,316
1,413,623,056
Irrigated
2,960,760
2,936,120
2,834,466
2,827,311
2,796,388
Dry farm
-
-
-
-
-
Recreational
99,802,827
104,324,505
101,870,300
100,138,918
104,981,278
Institutional
213,333,035
162,056,819
142,862,940
136,824,169
132,119,758
Government
356,714
220,358
216,042
215,066
210,850
Miscellaneous
309,530
348,240
341,421
1,017,342
864,299
Vacant land
449,270,431
419,750,992
507,997,067
509,125,263
565,117,297
SBE Nommitary
3,696,751
3,696,751
3,696,751
3,696,751
3,696,751
Possessory Int.
117,718,179
115,205,002
112,978,072
113,541,478
125,301,717
Unsecured
797,363,610
853,667,044
888,132,057
854,976,697
870,669,758
Unknown
20
20
20
20
-
Totals
$28,423,909,262
$27,330,863,338
$26,111,942,635
$24,269,472,731
$20,985,441,963
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.
219
Category
Residential
Commercial
Industrial
Irrigated
Recreational
Institutional
Government
Miscellaneous
Vacant land
SBE Nonunitary
Possessory Int.
Unsecured
Exempt
Totals
City of Santa Clarita
Assessed Values —Use Category Summary
Fiscal Year 2021-22
Assessed
Parcels Value Percent
63,302
30,420,978,191
938
4,100,133,721
735
2,254,211,678
6
3,678,125
35
113,084,198
104
803,504,100
7
1,726,326
8
356,649
3,597
647,473,699
(15)
4,429,350
(2,099)
147,670,464
(4,292)
868,400,813
1,249
76,200,897
77.1 %
10.4%
5.7%
0.0%
0.3%
2.0%
0.0%
0.0%
1.6%
0.0%
0.4%
2.2%
n 1o/
Exemptions
94,875,905
119,985,780
222,501,995
3,185,798
526,506,903
921,913
3,211,385
3,743,026
76,200,897
Net
Taxable
Value Percent
30,326,102,286
3,980,147,941
2,031,709,683
3,678,125
109,898,400
276,997,197
804,413
356,649
644,262,314
4,429,350
147,670,464
864,657,787
78.99%
10.37%
5.29%
0.01 %
0.29%
0.72%
0.00%
0.00%
1.68%
0.01 %
0.38%
2.25%
0.00%
63,575 $ 39,441,848,211 100.00% 1,051,133,602 $ 38,390,714,609 100.00%
ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2021-22
Fiscal Year 2021-22
❑ Industrial • All Others,
o All Others, 5.35%
❑ Industrial, 6.76% 5.29%
5.72
❑ Commercial
-- , 10.37%
Commercial, ❑ Residential,
10.40% 78.99%
Residential,
77.13 %
Source: HdL Coren & Cone, Los Angeles County Assessor 2021-22 Combined Tax Rolls.
220
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
Los
Castaic Lake
County County
Fiscal
Angeles
Water
School Sanitation Flood
Year
General
County
Agency
Districts Districts Control
Total
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
2021-22
1.000000
-
0.070600
0.384850 - -
1.455450
1.200000
1.000000
0.800000
0.600000
0.400000
0.200000
0.000000
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2020-21
y Flood
LA County DISTRICTS
Source: HdL Coren & Cone, Los Angeles County Assessor 2020-21 Tax Rate Table
221
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
of 1% Total City
Roll Year per Prop. 13 Debt Rates Rates
2021-22 0.086630 0.000000 0.086630
Agency
2021-22
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)
0.010619
Newhall Elementary School District Debt Services 2011 Ser. A (581.54)
0.027513
William S. Hart Unified Debt Services 2001 Ser. B (757.52)
0.014186
William S. Hart Un.Hsd Debt Services 2012 Refunding Bonds (757.55)
0.008284
William S. Hart Un.Hsd Debt Services 2008 Ser. C (757.56)
0.007959
William S. Hart Un.Hsd Debt Services 2013 Ref. Bds. (757.57)
0.009227
William S. Hart Un.Hsd Debt Services 2020 Ref. Bds. (757.59)
0.014631
Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52)
0.003361
Santa Clarita Community College Debt Services 2006 Ser. 2012 (814.56)
0.000643
Santa Clarita Community College Debt Services 2013 Refunding Bonds(814.57)
0.007274
Santa Clarita Community College Debt Services 2006 Ser. 2014 (814.58)
0.001091
Santa Clarita Community College Debt Services 2016 Refunding Bonds (814.59)
0.006113
Santa Clarita Community College Debt Services 2006 Ser. 2016 (814.60)
0.001565
Santa Clarita Community College Debt Services 2016 Ser. 2017 (814.61)
0.003823
Santa Clarita Community College Debt Services 2016 Ser. 2019 (814.62)
0.010912
Santa Clarita Community College Debt Services 2019 Refunding Bonds (814.63)
0.003063
Santa Clarita Community College Debt Services 2021 Refunding Bonds (814.64)
0.003191
Total Tax Rate
0.198955
Prop. 13
plus applicable
ter -approved debt
0.00000% 8.97200%
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.
Source: HdL Coren & Cone, Los Angeles County Assessor 2021/22 Tax Rate Table
222
City of Santa Clarita
Principal Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
Fiscal Year 2021-22
Percent of
'_Number
Total
Total City
of
Assessed
Assessed
Owner/Taxpayer
Parcels
Value
Value
Valencia Town Center Venture LP
17 $
410,701,462
1.09 %
Park Sierra Properties
15
149,873,887
0.40
BEL Valencia LLC Lessor
9
142,173,982
0.38
WESCO IV LLC
2
128,369,714
0.34
Saugus Colony Limited
19
126,951,335
0.34
IVT River Oaks Valencia LLC
7
120,885,522
0.32
EQR Valencia LLC
218
112,632,436
0.30
EQR The Oaks LLC
28
110,316,781
0.29
ARC SLSTCCA001 LLC
4
106,591,121
0.28
Valencia Biomedical Park LLC
11
89,821,022
0.24
Total
All Others
Total Assessed Valuation
330 1,498,317,262 3.99 %
36,076,588,243 96.01
$ 37,574,905,505 100.00 %
Fiscal Year 2012-13
Number
of
Parcels
Total
Assessed
Value
Percent of
Total City
Assessed
Value
18 $
351,546,003
1.68 %
10
138,857,780
0.66
218
97,073,823
0.46
11
78,039,507
0.37
2
70,987,026
0.34
17
71,577,658
0.34
25
61,757,458
0.29
7
56,408,923
0.27
3
55,868,091
0.27
1
54,804,930
0.26
312 1,036,921,199 4.94 %
19,948,078,764 95.06
$ 20,984,999,963 100.00 %
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone, LA County Assessor 2021/22 Combined Tax Rolls
223
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
Fiscal
Year
Taxes
Levied
Collections
Percent
Collections
Collections Total
in Subsequent Collections
Years to Date
Percent
Collections
to Date
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%
2021-22
33,543,481
33,231,723
99.1%
- 33,231,723
99.07%
TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
FISCAL YEAR
■LEVIES oCOLLECTIONS ■ DELINQUENT AMOUNT
Notes:
Article XI1I-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
224
City of Santa Clarita
Successor Agency
Top Property Owners Based on Net Values
Fiscal Year 2021-22
Owner
1 SPECTRUM PACIFIC WEST LLC
(Pending Appeals On Parcels)
2 LA RAILROAD 93 LLC
3 NEWHALL BLISS LLC
4 COV-SAUGUS B LLC
5 OLD TOWN MAIN LLC
6 JDH MULBERRY
7 NEWHALL CROSSING LLC
8 LYONS PROPERTIES LIMITED
(Pending Appeals On Parcels)
9 TELFAIR CORPORATION
10 25805 SAN FERNANDO ROAD LLC
Top Ten Total
Agency Total
Incremental Net AV Total
Source: HdL Coren & Cone
Secured
Unsecured
Combined
% of % of
% of
Parcels
Value
Parcels Values
Value
Net AV Net AV
Net AV
3 $ 50,635,803 59.46%
$ 50,635,803
6.13%
24
31,447,000
4.24%
31,447,000
3.81%
10
22,426,902
3.03%
22,426,902
2.72%
5
19,356,486
2.61%
19,356,486
2.34%
2
15,466,547
2.09%
15,466,547
1.87%
1
11,590,504
1.56%
11,590,504
1.40%
1
11,412,163
1.54%
11,412,163
1.38%
1
11,238,326
1.52%
1.36%
2 9,669,999 1.31%
1 8,973,755 1.21%
47 $ 141,581,682 19.11%
740,864,794
$ 494,496,727 28.63%
3 $50,635,803 59.46%
85,162,194
9,669,999 1.17%
8,973,755 1.09%
$192,217,485 23.27%
826,026,988
$67,230,542 75.32% $561,727,269 34.22%
225
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226
City of Santa Clarita
Successor Agency
Project Area Assessment Appeals Summary and Tax Collection History
Fiscal Years 2012-13 Through 2021-22
Project Area Assessment Appeals Summary—FY 2021-22
Estimated Reduction
Total No. of No. of Resolved No. of Successful Average No. & Value of Estimated No. of on Pending Appeals
Appeals Appeals Appeals Reduction Appeals Pending Appeals Allowed Allowed
71 57 54 45.9% 14 / $104,553,941 13 $ 45,491,519
Tax Collection History
For Fiscal Years 2012-13 Through 2021-22
Current Year
Current Year Prior Year Collection Total Collection
Year Tax Levy Collection Collection Total Percentage Percentage
2012-13
(I)
3,485,808
2,786,791
275,290
3,062,081
80%
88%
2013-14
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%
2015-16
3,579,829
3,430,748
518,292
3,704,259
96%
103%
2016-17
4,063,020
3,819,731
797,178
3,983,145
94%
98%
2017-18
(1)
4,188,893
3,944,498
860,267
4,046,235
94%
97%
2018-19
4,405,493
4,363,813
2,142,067
5,328,034
99%
121%
2019-20
(I)
4,715,737
4,618,068
1,503,717
4,689,684
98%
99%
2020-21
(l)
5,123,622
5,012,407
(66,406)
4,946,001
98%
97%
2021-22
(')
5,758,932
5,718,046
533,235
6,251,281
99%
109%
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 special reports from Los Angeles County Auditor -Controller commencing
February 2012 pursuant to AB X 126.
227
Assessor's Parcel
Number
2861-058-071
2861-058-072
2861-058-073
2861-058-076
2861-058-077
2861-058-081
2861-058-084
2861-058-085
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2021-22
Land Assessed
Structure
Total Assessed
Taxable
Property Owner
Value ($)
Assessed Value ($)
Value ($)
Acreage
Valencia Town Center Venture LP
$ 1,352,146
$ 206,036
$ 1,558,182
0.84
Valencia Town Center Venture LP
3,747,939
19,484,772
23,232,711
4.81
Valencia Town Center Venture LP
29,618,697
3,649,849
33,268,546
15.68
Valencia Town Center Venture LP
943,521
93,705
1,037,226
1.18
Valencia Town Center Venture LP
5,094,619
435,766
5,530,385
6.70
Valencia Town Center Venture LP
17,228,912
184,950,946
202,179,858
14.34
Valencia Town Center Venture LP
3,554,228
10,302,128
13,856,356
2.05
Valencia Town Center Venture LP
463,588
231,791
695,379
0.33
Totals:
$ 62,003,650
$ 219,354,993
$ 281,358,643
45.94
228
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center) (Continued)
Fiscal Year 2021-22
Max Tax Rate
Class
M
Max Tax
Applied Rate ($)
Charge ($)
1
$ 39,338
$ 33,205
$ 28,604
$ 24,544
1
39,338
189,217
28,604
139,862
1
39,338
616,903
28,604
455,990
1
39,338
46,577
28,604
34,427
1
39,338
263,566
28,604
194,818
39,338.27 &
1&2
264,976.47
564,184
28,607
417,022
1
39,338
80,643
28,604
59,608
1
39,338
12,903
28,604
9,537
$ 1,335,809
229
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Private Purchase Governmental
Fiscal Certificates Placement Financed Activities
Year
of Participation (1) (3)
Loans
Bonds (2)
Lease (4)
Notes (5)
Total
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
2018-19
65,333,412
2,177,480
2,538
67,513,430
2019-20
65,085,696
730,371
497,583
66,313,650
2020-21
77,875,819
-
542,094
78,417,913
2021-22
75,762,440
129,277
75,891,717
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 outstanding 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 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.
(5) As result of implementing GASB Statement No. 87, these obligations are reported as purchase financed notes effective fiscal year 2021-22.
Sources: City of Santa Clarita, Administrative Services Department - Finance Division
230
City of Santa Clarita
Ratio of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Percentage
Successor Agency
Business -Type Activities
of
Outstanding
Tag
Total
Taxable
Debt
Debt to
Allocation
Grand Lease
Primary
Assessed
Per
Personal
Bonds (6)
Total Pavable Total
Government
Value
Capita
Income
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
34,794,208
78,802,979
44,008,771
0.14%
203
N/A
33,960,547
101,473,977
67,513,430
0.21%
310
N/A
33,106,887
99,420,537
66,313,650
0.19%
299
N/A
32,223,226
110,641,139
78,417,913
0.21%
354
N/A
31,294,566
107,186,283
75,891,717
0.20%
332
N/A
(6) 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.
400
350
300
250
200
150
100
50
OUTSTANDING DEBT PER CAPITA
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-212021-22
Fiscal Year
231
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 (1)
Bonds
Participation
Total
Value
Capita
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
2021-22
228,835
75,762,440
-
75,762,440
0.33%
331
400
350
300
250
200
150
100
50
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Source: (1) State of California, Finance Department
Fiscal Year
232
City of Santa Clarita
Direct and Overlapping Tax and Assessment Debt
June 30, 2022
2021-22 Assessed Valuation: $38,390,714,609
(Net of Redevelopment Agency Incremental Value of $561,727,269)
2021-22 Population: 228,835
Percent City's Share
Total Debt Applicable of Debt
06/30/2022 To City 06/30/2022
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Santa Clarita Community College District
William S. Hart Union High School District
William S. Hart Union High School District Community Facilities District No. 90-1
William S. Hart Union High School District Community Facilities District No. 2005-1
William S. Hart Union High School District Community Facilities District No. 2015-1
Los Angeles Community College and Unified School Districts
Castaic Union School District
Newhall School District
Newhall School District School Facilities Improvement District No. 2011-1
Saugus Union School District
Saugus Union School District School Facilities Improvement District No. 2014-1
Saugus Union School District Community Facilities District No. 2005-1
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 1
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 2
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 3
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 1
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 2
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 3
Saugus Union School District Community Facilities District No. 2019-1
Saugus -Hart School District Community Facilities District No. 2000-1
Saugus-Castaic School District Facilities Financing Authority
Community Facilities District No. 2006-1C
Sulphur Springs Union School District
Sulphur Springs Union School District No 2002-1
Sulphur Springs Union School District No 2006-1
Sulphur Springs Union School District No 2014-1
City of Santa Clarita Community Facilities District No. 2002-1
City of Santa Clarita Community Facilities District No. 2016-1
City of Santa Clarita 1915 Act Bonds
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
Los Angeles County General Fund Obligations
Los Angeles County Superintendent of Schools Certificates of Participation
Los Angeles County Sanitation District No. 32 Authority
Santa Clarita Community College District Certificates of Participation
William S. Hart Union High School District General Fund Obligations
Castaic Union School District Certificates of Participation
Saugus Union School District General Fund Obligations
Sulphur Springs Union School District Certificates of Participation
Los Angeles Unified School District Certificates of Participation
City of Santa Clarita Obligations
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
Total Net Direct and Overlapping General Fund Debt
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
Total Direct Debt
Gross Total Overlapping Debt
Net Total Overlapping Debt
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
319,796,439
76.30%
$ 243,991,891
318,793,875
76.29%
243,198,283
105,000
100%
105,000
13,540,000
100%
13,540,000
24,665,000
100%
24,665,000
14,916,575,000
0.00001%
1,492
23,625,000
27.36%
6,464,036
3,730,000
60.53%
2,257,732
56,345,000
61.86%
34,853,890
2,321,729
93.81%
2,178,107
128,030,000
94.33%
120,775,820
13,895,000
100%
13,895,000
25,655,000
100%
25,655,000
19,645,000
100%
19,645,000
19,045,000
100%
19,045,000
11,200,000
100%
11,200,000
6,435,000
100%
6,435,000
13,730,000
100%
13,730,000
9,225,000
100%
9,225,000
7,175,000
100%
7,175,000
15,310,000
100%
15,310,000
57,590,709
94%
54,132,963
22,270,000
100%
22,270,000
22,590,879
100%
22,590,879
18,610,000
100%
18,610,000
12,170,000
100%
12,170,000
17,130,000
100%
17,130,000
415,000
100%
415,000
980,665,093
2,698,357,105
2.17%
58,473,398
3,972,227
2.17%
86,078
1,502,964
78.42%
1,178,654
6,545,000
76.30%
4,993,573
41,126,267
76.29%
31,373,995
2,885,000
27.361%
789,365
-
0.000%
-
28,880,000
94.00%
27,146,045
120,710,000
0.00001%
12
76,772,034
100.00%
76,772,034 (2)
200,813,155
200,813,155
30,615,000
100.000%
30,615,000
$ 76,772,034
1,135,321,214
1,135,321,214
1,212,093,248 (3)
1,212,093,248
(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 $129,277 for the Zamboni Lease, $880,316 GASB 87 Lease Payable, $7,930,000 for the
2016A series Golden Valley Road bond, $25,345,000 for the 2019 Series Sheriff Station Bond, $13,435,000
Recreational Facility, $12,020,000 for Open Space Preservation District, and $2,896,658 for deferred amount for issuance premium, net of discount.
Also included are $13,665,000 for Revenue and Taxable Revenue Bonds - Series 2018A and Series 2018B , Streetlights Acquisition and Retrofit Program,
and $470,783 for deferred amount for issuance premium, net of discount.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations.
Ratios to 2021-2022 Assessed Valuation:
Total Overlapping Tax and Assessment Debt...................................................2.55%
Total Direct Debt($76,772,034)...................................................................0.20%
Combined Total Debt ...................................... Va.........................................3.15 %
Ratios to Redevelopment Successor Agency Incremental Valuation ($561,727,269):
Total Overlapping Tax Increment Debt..............................................................5.45%
Source: Avenue Insights & Analytics
California Municipal Statistics, hic.
233
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
21-22
20-21
19-20
18-19
17-18
$ 38,390,714,609
$ 36,983,412,434
$ 35,174,818,421
$ 32,480,968,597
$ 30,727,345,419
25%
25%
25%
25%
25%
9,597,678,652
9,245,853,109
8,793,704,605
8,120,242,149
7,681,836,355
15%
15%
15%
15%
15%
1,439,651,798
1,386,877,966
1,319,055,691
1,218,036,322
1,152,275,453
$ 1,439,651,798 $ 1,386,877,966 $ 1,319,055,691 $ 1,218,036,322 $ 1,152,275,453
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 witbin the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
234
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
City of Santa Clarita
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscal Year
16-17
15-16
14-15
13-14
12-13
$ 28,685,821,032
$ 27,330,863,338
$ 26,111,942,635
$ 24,269,472,731
$ 20,985,441,963
25%
25%
25%
25%
25%
7,171,455,258
6,832,715,835
6,527,985,659
6,067,368,183
5,246,360,491
15%
15%
15%
15%
15%
1,075,718,289
1,024,907,375
979,197,849
910,105,227
786,954,074
$ 1,075,718,289 $ 1,024,907,375 $ 979,197,849 $ 910,105,227 $ 786,954,074
0% 0% 0% 0% 0%
y LEGAL DEBT MARGIN
o Last Ten Fiscal Years
1,600
1,400
1,200
1,000
800
600
400
200
0
12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
Fiscal Year
235
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)
Revenue Principal Interest Coverage
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 - - -
2021-22
41,177,219
31,581,746
9,595,473 - - -
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
236
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 Person 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
2013
204,951
15.50%
9,958,091
0.74%
48,425
635,891,798
2014
209,130
2.04%
10,041,797
0.84%
50,751
673,073,539
2015
213,231
1.96%
10,136,559
0.94%
54,526
727,377,241
2016
219,611
2.99%
10,241,335
1.03%
57,160
760,828,529
2017
216,350
-1.48%
10,241,278
0.00%
60,087
802,394,100
2018
216,589
0.11%
10,283,729
0.41%
63,913
849,493,416
2019
218,103
0.70%
10,253,716
-0.29%
66,684
881,215,471
2020
221,932
1.76%
10,172,951
-0.79%
69,805
915,132,543
2021
221,572
-0.16%
10,044,458
-1.26%
N/A
N/A
2022
228,835
3.28%
9,861,224
-1.82%
N/A
N/A
POPULATION INCREASE
Last Ten Fiscal Years
17.00%
15.00%
13.00%
11.00%
9.00%
7.00%
5.00%
3.00%
1.00%
-1.00%
Sources: (1) State of California, Finance Department, as of l/l/2022: 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 August 2022
Note: Reduction in 2017 population numbers due to change in the county controls. The primary factor was
a lowering of the estimated school enrollment.
6.90%
6.60%
4.70%
6.40%
4.70%
4.40%
5.10%
4.80%
13.60%
7.30%
4.70%
237
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
2022*
2013
PERCENT
PERCENT
NUMBER
of
NUMBER
of
of
TOTAL
of
TOTAL
EMPLOYER
EMPLOYEESEMPLOYMENT
EMPLOYER
EMPLOYEESEMPLOYMENT
Six Flags Magic Mountain
2,200
10.70%
Six Flags Magic Mountain
4,500
25.92%
Henry Mayo Newhall
Memorial Hospital
1,778
8.65%
Princess Cruises
1,600
9.22%
Henry Mayo Newhall
Princess Cruises
1,116
5.43%
Memorial Hospital
1,400
8.06%
Boston Scientific
893
4.34%
Quest Diagnostics
850
4.90%
The Master's College
863
4.20%
The Master's College
800
4.61%
Advanced Bionics
693
3.37%
Woodward HRT
772
4.45%
Logix
674
3.28%
Walmart
624
3.59%
Woodward HRT
610
2.97%
Advanced Bionics
600
3.46%
Amazon
580
2.82%
Parmavite
567
3.27%
Kaiser Permanente
528
2.57%
Aerospace Dynamics
548
3.16%
Largest firms ``'
9,935
37.63%
Largest firms ���
12,261
70.62%
All others
10,620
51.67%
All others
5,100
29.38%
Grand total
20,555
89.30%
Grand total
17,361
100.00%
* As of August 2022
NOTE: (1)Non-governmental employers
Source: 2022 Economic Outlook Santa Clarita Valley Economic Dev Corp & College of the Canyons
238
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
City of Santa Clarita
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
Fiscal Year
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
88
85
84
81
76
76
91
88
88
90
143
142
142
140
127
129
132
125
122
129
46
45
45
44
43
44
37
41
41
32
70
67
68
68
64
64
112
111
109
108
106
104
103
100
79
74
-
-
-
-
10
10
10
10
12
12
12
11
11
11
461
452
451
442
400
398
384
376
371
370
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
ACn ,C 461.10
12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
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
239
City of Santa Clarita
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
Function 21-22 20-21 19-20 18-19 17-18
Police:
Parking citations issued (1)
18,651
Parking revenue collected
747,323
Public works:
Street resurfacing (miles)
58
Parks and Recreation:
Number of recreation classes
2,038
Number of facility rentals (times)
12,096
Transit:
Number of customers served (2)
1,900,958
11,359
13,992
24,214
15,505
417,978
516,477
364,954
498,749
28
39
26
39
1,593
2,197
2,773
2,903
10,016
11,778
12,787
12,013
1,673,828
2,131,694
2,680,202
2,775,327
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
240
City of Santa Clarita
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Fiscal Year
Function 16-17 15-16 14-15 13-14 12-13
Police
Parking citations issued (1)
13,133
9,035
4,765
4,786
5,726
Parking revenue collected
470,843
379,384
320,682
323,040
341,607
Public works:
Street resurfacing (miles)
45
16
80
21
18
Parks and Recreation:
Number of recreation classes
2,992
2,918
2,189
2,557
2,548
Number of facility rentals (times)
19,924
13,390
19,018
14,604
13,000
Transit:
Number of customers served (2)
2,864,351
3,167,021
3,422,015
3,540,969
3,661,302
241
Function
Public works:
Streets (miles)
Street lights (1)
Traffic signals (City Jurisdiction)
Traffic signals (Joint Jurisdiction)
Parks and recreation:
Number of parks
Community centers
Transit:
Stations
City of Santa Clarita
Capital Assets Statistics by Function
Last Ten Fiscal Years
Fiscal Year
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
12-13
573
573
570
540
540
537
516
497
496
496
18,703
18,622
18,662
18,662
18,662
17,843
17,843
17,843
17,843
17,843
199
198
195
187
187
186
180
180
177
177
4
4
4
5
5
5
5
5
5
5
35
34
33
32
32
32
32
32
29
29
2
2
2
2
2
2
2
2
2
1
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, between 2019 and
2021 the City purchased the majority of streetlights from Southern California Edison and converted the lights to LED. At this time, the City owns and responsible
for 18,703 streetlights, inclusive of Highway Safety Lights which are attached to traffic signals.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
242
23920 Valencia Blvd.
Suite 300
Santa Clarita, CA 91355
santa-clarita.com
Transit Enterprise Fund
of the City of Santa Clarita
Santa Clarita, California
Independent Auditors' Reports
and Financial Statements
For the Years Ended June 30, 2022
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
Transit Enterprise Fund of the City of Santa Clarita
For the Year Ended June 30, 2022
Table of Contents
Pate
Independent Auditor's Report on the Audit of the Financial Statements............................................................. 1
Financial Statements:
Statementof Net Position...................................................................................................................................... 7
Statement of Revenues, Expenses and Changes in Fund Net Position.................................................................. 8
Statementof Cash Flows....................................................................................................................................... 9
Notesto Financial Statements.............................................................................................................................. 11
Required Supplementary Information (Unaudited):
Schedule of the Proportionate Share of the Net Pension Liability........................................................................ 28
Schedule of the Pension Contributions................................................................................................................. 30
Schedule of the Proportionate Share of the Net Other Postemployment
Benefits ("OPEB") Liability.......................................................................................................................... 33
Schedule of the OPEB Contributions................................................................................................................... 34
n
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THE
PUN GROUP
ACCOUNTANTS & ADVISORS
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Transit Enterprise Fund (the "Transit Fund") of the City
of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2022, and the related notes to the financial
statements, as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
the Transit Fund as of June 30, 2022, and the changes in its financial position and cash flows for the year then ended, in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
("GAAS"), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General ofthe United States ("Government Auditing Standards"). Our responsibilities underthose standards
are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Emphasis of 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, 2022, 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.
Responsibilities of Managementfor 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, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Auditors' Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during
the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Schedule of Proportionate
Share of the Net Pension Liability, the Schedule of Pension Contributions, the Schedule of Proportionate Share of the
Net Other Postemployment Benefits ("OPEB") Liability, and the Schedule of OPEB Contributions be presented to
supplement the basic financial statements. Such information is the responsibility of management and, although not a part
of the 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 GAAS, 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 financial statements, and other
knowledge we obtained during our audit of the 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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2022, 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.
Santa Ana, California
December 21, 2022
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FINANCIAL STATEMENTS
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Transit Enterprise Fund of the City of Santa Clarita
Statement of Net Position
June 30, 2022
ASSETS:
Current assets:
Pooled cash and investments
Accounts receivable
Interest receivable
Due from other governments
Prepaid items
Total current assets
Noncurrent assets:
Nondepreciable assets
Depreciable assets, net
Total capital assets
Net pension asset
Net other postemployment benefits asset
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES:
Pension related
Other postemployment benefits related
Total deferred outflows of resources
LIABILITIES:
Current liabilities:
Accounts payable
Accrued liabilities
Accrued payroll
Compensated absences - due within one year
Total current liabilities
Noncurrent liabilities:
Compensated absences - due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES:
Pension related
Other postemployment benefits related
Total deferred inflows of resources
NET POSITION:
Net investment in capital assets
Unrestricted
Total net position
$ 7,337,210
76,295
13,774
7,224,661
3,534
14,655,474
29,209,181
66,388,140
95,597,321
15,215
49,712
95,662,248
110,317,722
414,777
255,706
670,483
4,995,114
756
20,647
55,926
5,072,443
86,839
86,839
5,159,282
783,549
530,741
1,314,290
95,597,321
8,917,312
$ 104,514,633
See accompanying Notes to the Financial Statements.
7
Transit Enterprise Fund of the City of Santa Clarita
Statement of Revenues, Expenses, and Change in Fund Net Position
For the Year Ended June 30, 2022
OPERATING REVENUES:
Metrolink and EZ pass revenues
$ 61,520
Fixed -route passenger fares
1,305,496
Dial -A -Ride passenger fares
80,474
County of Los Angeles operating assistance
2,439,725
Specialized transit services
2,049,383
Miscellaneous revenues
1,562,025
Total operating revenues
7,498,623
OPERATING EXPENSES:
Salaries and benefits
994,372
Administrative services
2,297,767
Contract transportation services
18,591,237
FTA funded non -capitalized projects
151,521
Insurance
154,363
Supplies, utilities and other
2,694,028
Depreciation
6,459,585
Total operating expenses
31,342,873
OPERATING (LOSS)
(23,844,250)
NONOPERATING REVENUES:
Proposition A Discretionary
4,648,683
Proposition A Specialized Transportation
1,565,711
Proposition C Expansion
206,663
Proposition C BSIP
53,643
Proposition C Transit Mitigation
15,143
Proposition C Security Allocation
220,785
Measure R Bus Operations
2,495,030
Measure M Bus Operations
2,486,530
SB1 State Transportation Assistance
394,942
Investment (loss)
(185,016)
Gain on disposal of capital assets
36,900
Total nonoperating revenues
11,939,014
INCOME BEFORE CONTRIBUTIONS AND TRANSFERS
(11,905,236)
CAPITAL CONTRIBUTIONS:
Federal Transit Administration capital grants
9,117,836
Transit mitigation fees
320,524
Proposition C MOSIP
322,341
Measure R Clean Fuel
432,143
Measure R Regional
3,210,047
Total contributions
13,402,891
TRANSFERS:
Transfers in from the City
8,336,691
Transfers out to the City
(238,873)
Total transfers
8,097,818
Change in net position
9,595,473
NET POSITION:
Beginning of year
94,919,160
End of year
$ 104,514,633
See accompanying Notes to the Financial Statements.
Transit Enterprise Fund of the City of Santa Clarita
Statement of Cash Flows
For the Year Ended June 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users $ 5,861,604
Cash payments to suppliers for goods and services (21,467,148)
Cash payments to employees (1,292,676)
Cash received from other sources 1,562,025
Net cash (used in) operating activities (15,336,195)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in from the City 8,336,691
Transfers out to the City (238,873)
Federal and state funding received 11,448,297
Net cash provided by noncapital fmancing activities 19,546,115
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital contributions 13,402,891
Acquisition of capital assets (14,033,396)
Proceeds from sale of capital assets 36,900
Net cash (used in) capital and related financing activities (593,605)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment loss (191,401)
Net cash (used in) investing activities (191,401)
Net change in cash and cash equivalents 3,424,914
CASH AND CASH EQUIVALENTS:
Beginning of year
3,912,296
End of year
$ 7,337,210
RECONCILIATION OF OPERATING (LOSS) TO NET CASH
(USED IN) OPERATING ACTIVITIES:
Operating (loss)
$ (23,844,250)
Adjustments to reconcile operating (loss) to net cash
(used in) operating activities:
Depreciation
6,459,585
Changes in operating assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
(Increase) decrease in accounts receivable
(74,994)
(Increase) decrease in prepaid items
14,701
Increase (decrease) in accounts payable
2,406,801
Increase (decrease) in accrued liabilities
266
Increase (decrease) in accrued payroll
8,053
Increase (decrease) in compensated absences
1,096
Increase (decrease) in pension and pension related deferred outflows and inflows of resources
(271,319)
Increase (decrease) in OPEB and OPEB related deferred outflows and inflows of resources
(36,134)
Net cash (used in) operating activities
$ (15,336,195)
See accompanying Notes to the Financial Statements.
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10
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies
A. Description of the Financial Reporting Entity
The financial statements of the Transit Enterprise Fund (the "Transit Fund") of the City of Santa Clarita, California
(the "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 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.
B. Measurement Focus, Basis of Accounting and Financial Statements Presentation
The accounting policies of the Fund are in accordance 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.
The financial statements of the Transit Fund include a Statement of Net Position, a Statement of Revenues, Expenses,
and Changes in Fund Net Position, and a 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.
C. Cash and Cash Equivalents
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.
11
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
D. 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, State of California, and Los Angeles Metropolitan Transportation Authority.
E. Administrative Services
Service costs include contractual, professional, and legal services.
F. Prepaids Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items
in the financial statements.
G. 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:
As s ets
Years
Site improvements
5 to 25
Building an improvements
5 to 50
Equipment
5 to 25
H. Deferred Outflows and Inflows of Resources
The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows
of resources, when applicable.
Deferred Outflows of Resources represent a consumption of net position that apply to future periods. The Transit
Fund reports pension contribution after measurement date, deferred loss related to pension and other
postemployment benefits in this category.
Deferred Inflows ofResources represent an acquisition of net position that apply to future periods. The Transit Fund
reports deferred gain related to pension and other postemployment benefits in this category.
12
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
L Compensated Absences
Liability is reported for unused vacation, sick and other leave balances since the employees' entitlement to theses
balances are attributable to services already rendered and it is probable that virtually all of these balances will be
liquidated by either time off taken by employees or payment upon termination or retirement.
J. Pensions
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
(Ca1PERS) plan and additions to/deductions from the plan's fiduciary net position have been determined on the same
basis as they are reported by Ca1PERS. For this purpose, benefit payments are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the plans and additions
to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by
the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date: June 30, 2020
Measurement Date: June 30, 2021
Measurement Period: July 1, 2020 to June 30, 2021
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension
expense systematically over time. The first amortized amounts are recognized in pension expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources
related to pensions and are to be recognized in future pension expense. The amortization period differs depending
on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line
over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all
members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
K. 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 (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.
13
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Summary of Significant Accounting Policies (Continued)
K. Other Post -Employment Benefits ("OPEB') (Continued)
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, 2022
Measurement Period: July 1, 2021 to June 30, 2022
Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over
time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The
remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are
to be recognized in future OPEB expense. The gain and loss are amortized straight-line over the average expected
remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the
beginning of the measurement period.
L. 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, 2022 was $142,765 of which $55,926 was considered due within one year, and $86,839 was
considered due in more than one year.
M. Net position
Net position represents the difference between assets and deferred outflows, and liabilities and deferred inflows, and
is classified into two categories:
Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated
depreciation.
Unrestricted — This amount represents the residual of amounts not classified in investment in capital assets and
represents the net position available for the Transit Fund.
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.
N. 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.
14
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 2 — Cash and Cash Equivalent
The Transit Fund's share of the City's cash and investment at June 30, 2022 was in the amount of $7,337,210.
Cash is deposited in the City's internal investment pool, which is reported at the amortized cost. The Transit Fund does
not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances.
Investment policies and associated risk factors applicable to the Transit Fund are those of the City and are included in
the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related
disclosures for cash and investments.
Note 3 — Due From Other Governments
Due from other governments consists of the following at June 30, 2022:
Agency Amount
Los Angeles County $ 1,796,164
Federal Government 439,945
Federal Transit Administrator 2,108,541
Other Agencies 2,880,011
Total $ 7,224,661
Due from other governments relate to various program support revenues received from other governments in support of
transit operations and programs.
Note 4 — Capital Assets
Changes in capital assets of the Fund at June 30, 2022, consisted of the following:
Capital assets, not being depreciated:
Land and right of way
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Site improvement
Building improvements
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Site improvement
Building imp rovements
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Total capital assets, net
Balance
Balance
July 1, 2021
Additions
Deletions
Reclassification
June 30, 2022
$ 15,087,880
$ -
$ -
$ -
$ 15,087,880
10,328,640
7,950,696
-
(4,158,035)
14,121,301
25,416,520
7,950,696
-
(4,158,035)
29,209,181
12,941,276
-
-
-
12,941,276
41,656,101
-
-
3,945,825
45,601,926
65,616,372
6,082,700
(3,112,561)
212,210
68,798,721
120,213,749
6,082,700
(3,112,561)
4,158,035
127,341,923
(5,536,475)
(568,220)
-
-
(6,104,695)
(15,466,012)
(980,520)
-
-
(16,446,532)
(36,604,272)
(4,910,845)
3,112,561
-
(38,402,556)
(57,606,759)
(6,459,585)
3,112,561
-
(60,953,783)
62,606,990
(376,885)
-
4,158,035
66,388,140
$ 88,023,510
$ 7,573,811
$ -
$ -
$ 95,597,321
15
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 5 — Pension Plan
A. General Information about the 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 (Ca1PERS), 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. Ca1PERS 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 Ca1PERS website.
The Plan's provisions and benefits in effect at June 30, 2022, are summarized as follows:
Miscellaneous
Tier 1 Tier 2 Tier 3
Benefit formula
2.7% @ 55
2% @ 60
2% @ 62
Benefit vesting schedule
5 years of service
5 years of service
5 years of service
Benefit payments
Monthly for life
Monthly for life
Monthly for life
Retirement age
50-55
50-60
52-62
Required employee contribution rates
8.000%
7.000%
6.250%
Required employer contribution during measurement p erio
9.040%
9.040%
9.040%
Applies to:
Employees hired
Employees hired between
Employees hired
before April 9, 2011
April 9, 2011 and
January 1,2013 or
December 31, 2012 or
later
those hired January 1,
2013, or later, who
have been a classic
CAPERS member with
a public agency or in
a classic reciprocal
Plan within the last
6 months *
* Those hired as part 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.
Contrihn.tion.c
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 Ca1PERS. The actuarially determined rate is the estimated amount necessary to finance the
costs of benefits earned by employees during the year. 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.
16
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 5 — Pension Plan (Continued)
A. General Information about the Pension Plan (Continued)
Contributions (Continued)
Contributions made to pension plan by the Transit Fund for the year ended June 30, 2022 were $297,419.
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The total pension liabilities in the June 30, 2020, actuarial valuation for the City's Miscellaneous Plan was
determined using the following actuarial assumptions applied to all periods included in the measurement:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rates
Inflation
Salary Increases
Mortality Rate Tables
Post Retirement Benefit Increase
Entry Age Normal
7.15%
2.500%
Varies by Entry Age and Service
Derived using Ca1PERS's Membership Data for all Funds.
The lesser of contract COLA or 2.50% until Purchasing Power
1 The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the
2017 CAPERS 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. For more
details on this table, please refer to the CAPERS Experience Study and Review of Actuarial Assumptions report from
December 2017 that can be found on the CAPERS website.
Changeo Assumption
There were no changes in assumptions.
Long -Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which 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 rate of return, CaIPERS took into
account both short-term and long-term market return expectations as well as the expected pension fund cash flows.
Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated
over the short-term (first 10 years) and the long-term (11+ 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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account
for assumed administrative expenses.
17
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 5 — Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Long -Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as followed:
Asset Class
Assumed Asset
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Global Equity
50.00%
4.80%
5.98%
Fixed Income
28.00%
1.00%
2.62%
Inflation Assets
0.00%
0.77%
1.81%
Private Equity
8.00%
6.30%
7.23%
Real Assets
13.00%
3.75%
4.93%
Liquidity
1.00%
0.00%
-0.92%
100.00%
' In the CalPERS'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 of 2.00% used for this period.
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.
Proportionate Share ofNet Pension Liability and Pension Expense
The following table shows the Transit Fund's proportionate share of the risk pool collective net pension liability
over the measurement period:
Balance at June 30, 2020 (Valuation Date)
Balance at June 30, 2021 (Measurement Date)
Net changes during 2020-21
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) _ (a) - (b)
$ 7,975,980 $ 6,755,171 $ 1,220,809
8,512,373 8,527,588 (15,215)
$ 536,393 $ 1,772,417 $ (1,236,024)
18
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 5 — Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Proportionate Share ofNet Pension Liability and Pension Expense (Continued)
The Transit Fund's proportion of the net pension liability (asset) 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 was as follows:
Measurement Date
June 30, 2020 3.51435%
June 30, 2021 3.51435%
Change - Increase (Decrease) 0.00000%
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:
Plan's Net Pension Liability/(Asset)
Discount Rate Current Discount Discount Rate
Measurement Date - 1%(6.15%) Rate (7.15%) + 1%(8.15%)
June 30, 2021 $ 1,264,556 $ (15,215) $ (1,060,554)
Pension Plan Fiduciary Net Position
Detail information about the plan's fiduciary net position is available in the separately issued Ca1PERS financial
report and can be obtained from Ca1PERS' website under Forms and Publications.
Pension Expense and Deferred Outflows and Inflows of Resources
For the year ended June 30, 2022, the Transit Fund recognized pension expense of $271,319.
At measurement date June 30, 2021, the Transit Fund reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date $ 297,419 $ -
Difference between expected and actual experience 117,358 -
Changes in assumption - (3,962)
Net difference between projected and actual earning on
pension plan investments - (779,587)
Total $ 414,777 $ (783,549)
19
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 5 — Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Pension Expense and Deferred Outflows and Inflows of Resources (Continued)
The expected average remaining service lifetime ("EARSL") is calculated by dividing the total future service years
by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for miscellaneous
plan for the 2020-21 measurement period is 4.3 years, which was obtained by dividing the total service years of
5,006 (the sum of remaining service lifetimes of the active employees) by 1,160 (the total number of participants:
active, inactive, and retired).
$297,419 deferred outflows of resources related to pensions resulting from the Transit Fund's contributions made
subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the
year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Deferred Outflows/(Inflows) of Resources
Measurement Period
Ending June 30,
Miscellaneous Plan
2022
$ (140,588)
2023
(142,450)
2024
(171,093)
2025
(212,060)
2026
-
Thereafter
-
$ (666,191)
Note 6 — Other Post -Employment Benefits ("OPEB")
A. General Information about the OPEB Plan
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
Ca1PERS 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.
20
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 6 — Other Post -Employment Benefits (OPEB) (Continued)
A. General Information about the OPEB Plan (Continued)
Benefits Provided
At retirement, the City contributes a flat monthly rate of $149 for those employees who retire under the PERS
retirement system, subscribe to the PERS Health Insurance System, and have at least five years of CAPERS 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:
Years of Service
0 to 5 years
5to9years
10 to 14 years
15 years and greater
funding Policy
Vested Percentage
0%
50%
75%
100%
Please refer to the City's Annual Comprehensive Financial Report for details related to the funding policy.
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, 2022, the Transit
Funds proportionate share of cash contribution was $0 to the Plan and the estimated implied subsidy was in the
amount of $7,224, resulting in total contribution of $7,224.
21
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 6 — Other Post -Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
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 Cost Method
Actuarial Assumptions:
Actuarial Valuation Date
Contribution Policy
Discount Rate and Long -Term Expected Rate
of Return
Inflation
Mortality, Retirement, Disability, Termination
Mortality Improvement
Salary Increases
Medical Trend
PEMHCA Minimum Increases
Participation at Retirement
Waived Retirees Reelection
Cap Increase
Changes ofAssumptions
There were no changes in assumptions.
Entry Age Normal
June 30, 2020
Pre -fund cash benefit ADC with PARS Balanced Fund
Implied subsidy benefit on pay-as-you-go basis
6.25% at June 30, 2022 and June 30, 2021
Expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
2.75% annually
CaIPERS 1997-2015 Experience Study
Post -retirement mortality projected fully generational with Scale
MP-2019
Aggregate - 3% annually
Non -Medicare - 7% for 2022, decreasing to an ultimate rate of
4% in 2076; Medicare - 6.1% for 2022, decreasing to an ultimate
rate of 4.0% in 2076
4.25% annually
Hired < 1/l/08 - 95%
Hired> 1/l/08 - 60%
5%re-elect at 65 forpre-65
No increase in $1,016.58 cap; Medical trend for EE+1 cap
22
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 6 — Other Post -Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
Long -Term Expected Rate o Return
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 long-term expected real rates of return are presented as geometric means. 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
Cash
REITS
Assumed Long -Term Rate of Inflation
Expected Long -Term Net Rate of Return, Rounded
t)i.crount Rat, -
Target Allocation
Expected Real
58.00%
4.82%
35.00%
1.47%
2.00%
3.76%
5.00%
0.06%
100.00%
The discount rates used to measure the total OPEB liability was 6.25%.
Proportionate Share o f Net OPEB Liability
2.75%
6.25%
The following table shows the Fund's proportionate share of the net OPEB liability (asset) over the measurement
period:
Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 $ 952,988 $ 1,254,801 $ (301,813)
Balance at June 30, 2022 (Measurement Date) 1,007,777 1,057,489 (49,712)
Net changes during2021-22 $ 54,789 $ (197,312) $ 252,101
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 was as follows:
Measurement Date
June 30, 2021
June 30, 2022
Change - Increase (Decrease)
2.40%
2.40%
0.00%
23
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 6 — Other Post -Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
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:
Plan's Net OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
Measurement Date (5.25%) Rate (6.25%) (7.25%)
June 30, 2022 $ 100,232 $ (49,712) $ (172,093)
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, 2022:
Plan's Net OPEB Liability/(Asset)
Measurement Date 1%Decrease Current Trend 1%Increase
June 30, 2022 $ (200,858) $ (49,712) $ 140,158
OPEB Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the City's ACFR.
OPEB Expenses and Deferred Outflows and Inflows of Resources
For the measurement period ended June 30, 2022, the Transit Fund reported OPEB expense / (credit) in the amount
of ($28,910).
At June 30, 2022, the Fund reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Difference between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings
on plan investments
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $ (200,417)
163,347 (330,324)
92,359 -
$ 255,706 $ (530,741)
24
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 6 — Other Post -Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
OPEB Expenses and Deferred Outflows and Inflows of Resources (Continued)
Deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Deferred Outflows/ (Inflows) of Resources
Year Ending June 30,
OPEB Plan
2023 $
(37,534)
2024
(37,084)
2025
(42,810)
2025
(661)
2027
(50,206)
Thereafter
(106,740)
$ (275,035)
Note 7 — Administrative and Personnel Costs
Certain general and administrative costs are allocated to the Transit Fund based upon an approved cost allocation plan.
Such allocated costs in the amount of $776,970 were reported as part of supplies, utilities, and other operating expenses
for the year ended June 30, 2022.
Note 8 — Transfers from the City of Santa Clarita
During the year ended June 30, 2022, the City of Santa Clarita transferred $4,107,832 and $4,228,859 from the City's
Prop C and Prop A Special Revenue Funds, respectively, to support the allowable transit operation. The Transit Fund
transferred $238,874 to the City of Santa Clarita, $150,000 was to support the senior center transit operations, $85,184
was to support the City's share of pension costs, and $3,690 for the proportional share of Metrolink station maintenance.
25
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26
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
27
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of the Proportionate Share of the Net Pension Liability and Related Ratios
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("Ca1PERS")
Measurement Date
Proportion of the Net Pension Liability
Proportionate Share of
the Net Pension Liability (Asset)
Covered Payroll
Proportionate Share of the Net Pension
Liability as a Percentage of the Covered Payroll
Proportionate Share of the Fiduciary Net
Position as a Percentage of the Total Pension Liability
June 30, 2021 June 30, 2020 June 30, 2019
3.51435% 3.51435% 3.51435%
$ (15,215) $ 1,220,809 $ 1,367,413
$ 1,255,802 $ 1,225,894 $ 1,173,778
-1.21% 99.59% 116.50%
100.18% 84.69% 81.56%
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will
be displayed as it becomes available.
Notes to Schedule:
Changes of Assumptions: None in 2019 to 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the Ca1PERS
experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced
rom 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of
administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5%
discount rate.
28
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of the Proportionate Share of the Net Pension Liability and Related Ratios (Continued)
For the Years Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("Ca1PERS")
Measurement Date
Proportion of the Net Pension Liability
Proportionate Share of
the Net Pension Liability
Covered Payroll
Proportionate Share of the Net Pension
Liability as a Percentage of Its Covered Payroll
Proportionate Share of the Fiduciary Net
Position as a Percentage of the Total Pension Liability
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014'
3.51435% 3.51435% 3.51419% 3.51419% 3.51419%
$ 1,468,640 $ 1,641,432 $ 1,388,588 $ 1,084,341 $ 944,480
$ 1,053,068 $ 1,052,000 $ 981,713 $ 957,079 $ 944,599
139.46% 156.03% 141.45% 113.30% 99.99%
78.57% 74.42% 75.27% 79.11% 80.58%
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will
be displayed as it becomes available.
29
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2022
Fiscal Year
Actuarially determined contribution
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS")
2021-22 2020-21 2019-20 2018-19
$ 228,804 $ 217,547 $ 222,244 $ 198,133
Contributions in relation to the
actuarially determined contribution (297,419) (394,284) (561,483) (439,293)
Contribution deficiency (excess) $ (68,615) $ (176,737) $ (339,240) $ (241,161)
Covered Payroll' $ 1,243,143 $ 1,255,802 $ 1,196,042 $ 1,109,265
Contributions as a percentage of covered payroll 23.92% 31.40% 46.95% 39.60%
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will
be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make
additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Covered payroll represented above includes one year's payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30,
2018-22; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding
valuation report.
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Entry Age Normal Cost Method
Amortization method
Level percentage of payroll
Asset valuation method
Market value
Inflation
2.50%
Salary increases
Varies by entry age and service
Payroll Growth
2.75%
Investment rate of return
7% net of pension plan investment expenses; includes Inflation.
Retirement age
The probabilities of retirement are based on the 2017 CalPERS Experience study for the
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
30
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("Ca1PERS")
Fiscal Year
2017-18
2016-17
2015-16
2014-15
2013-14'
Actuarially determined contribution
$ 163,846
$ 157,588
$
139,123
$ 131,436
$ 125,184
Contributions in relation to the
actuarially determined contribution
(339,563)
(157,588)
$
(139,129)
(131,436)
(125,184)
Contribution deficiency (excess)
$ (175,718)
$ -
$
-
$ -
$ -
Covered Payroll'
$ 1,030,631
$ 1,017,646
$
1,004,503
$ 984,582
$ 944,599
Contributions as a percentage of covered payroll
32.95%
15.49%
13.85%
13.35%
13.25%
31
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32
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Net Other Postemployment Benefits Liability and Related Ratios
For the Year Ended June 30, 2022
Measurement Date
Proportion of the Net OPEB Liability
Proportionate Share of
the Net OPEB Liability (Asset)
Covered -employee payroll
Proportionate share of the net OPEB liability as a
percentage of its covered -employee payroll
Last Ten Fiscal Years
Retiree Healthcare Plan
June 30, 2022
June 30, 2021
June 30, 2020
June 30, 2019
June 30, 2018
2.40%
2.40%
2.40%
2.40%
2.40%
$ (49,718)
$ (301,813)
$ 400,077
$ 146,648
$ 247,416
$ 993,256
$ 855,299
$ 919,082
$ 813,498
$ 735,216
-5.01%-35.29% 43.53%
Proportionate Share of the Fiduciary Net
Position as a percentage of the total OPEB Liability 104.90% 131.67% 71.67%
Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18.
Note to Schedule:
18.03% 33.65%
87.12% 79.08%
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,
2022 and June 30, 2021 measurement date.
33
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits
For the Year Ended June 30, 2022
Fiscal Year
Actuarially determined contribution
Contributions in relation to
the actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Last Ten Fiscal Years
Retiree Healthcare Plan
2021-22 2020-21 2019-20 2018-19 2017-18*
$ 11,568 $ 12,408 $ 26,688 $ 27,048 $ 42,120
7,224 15,312 15,264 22,159 29,448
$ 4,344 $ (2,904) $ 11,424 $ 4,889 $ 12,672
$ 993,256 $ 855,299 $ 919,082 $ 813,498 $ 735,216
-0.73% 1.79% 1.66% 2.72% 4.01%
Notes to Schedule:
I Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18.
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Entry Age Normal Cost Method
Amortization method
Level percentage of payroll
Remaining amortization period
12-year fixed period for 2020-21
Asset valuation method
Investment gains and losses spend over 5-year rolling period
Discount rate
6.50%
General inflation
2.75%
Non -Medicare - 7% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Medical trend
Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076
Mortality
CaIPERS 1997-2015 experience study.
Mortality improvement
Post -retirement mortality projected fully generational with Scale MP-2019.
34
Air Quality Improvement
Special Revenue Fund
of the City of Santa Clarita
Santa Clarita, California
Financial Statements
and Independent Auditors' Reports
For the Year Ended June 30, 2022
THE �
PUN GROUP
ACCOUNTANTS & ADVISORS
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
For the Year Ended June 30, 2022
Table of Contents
Pate
Independent Auditors' Reports:
Report on the Audit of the Financial Statements...............................................................................................1
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards...................................................................5
Report on Compliance for Air Quality Improvement Special Revenue Fund;
and Report on Internal Control Over Compliance................................................................... 7
Financial Statements:
BalanceSheet........................................................................................................................................................13
Statement of Revenue, Expenditures, and Change in Fund Balance....................................................................14
Notes to the Basic Financial Statements...............................................................................................................15
Supplementary Information:
Schedule of Revenues, Expenditures, and Change in Fund Balance — Budget and Actual..................................21
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THE
PUN GROUP
ACCOUNTANTS & ADVISORS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Audit of the Financial Statements
Opinion
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
We have audited the accompanying financial statements of the Air Quality Improvement Special Revenue Fund (the
"Fund") of the City of Santa Clarita, California (the "City") as of and for the year ended June 30, 2022, and the
related notes to the financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the
financial position of the Air Quality Improvement Special Revenue Fund of the City as of June 30, 2022, and the
change in financial position for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
("GAAS"), and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States ( "Government Auditing Standards"). Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1, 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, 2022, the changes in its financial position, or, where applicable, its
cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of
America. Our opinion is not modified with respect to this matter.
Responsibilities of Managementfor 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, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Auditors' Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually
or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,
we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified
during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinion on the Fund `s financial statements. The Schedule of
Revenues, Expenditures, and Change in Fund Balance - Budget and Actual are presented for purposes of additional
analysis and are not a required part of the financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Revenues,
Expenditures, and Change in Fund Balance - Budget and Actual is fairly stated, in all material respects, in relation to
the financial statements as a whole.
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2022, on our
consideration of the City's internal control 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 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.
Santa Ana, California
December 21, 2022
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THE
PUN GROUP
ACCOUNTANTS & ADVISORS
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors' Report
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States ( "Government Auditing Standards"), the financial statements of the Air Quality
Improvement Special Revenue Fund of the City of Santa Clarita, California (the "City"), as of and for the year ended
June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated
December 21, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over the Air
Quality Improvement Special Revenue Fund's financial reporting ("internal control") as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of City's internal control.
Accordingly, we do not express an opinion on the effectiveness of City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination
of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Air Quality Improvement Special Revenue Fund's
financial statements are free from material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Santa Ana, California
December 21, 2022
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
REPORT ON COMPLIANCE FOR AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND;
AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Independent Auditors' Report
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Report on Compliance for the Air Quality Improvement Special Revenue Fund
Opinion on Compliance
We have audited the City of Santa Clarita, California's (the "City") compliance with the type of compliance
requirements described in the Assembly Bill 2766, Chapter 1705 (44220 through 44247) ("AB 2766") for the year
ended June 30, 2022.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are
applicable to Air Quality Improvement Special Revenue Fund for the year ended June 30, 2022.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America ("GAAS"); the standards applicable to financial audits contained in Government Auditing Standards
("Government Auditing Standards") issued by the Comptroller General of the United States; and AB 2766. Our
responsibilities under those standards and AB 2766 are further described in the Auditors' Responsibilities for the Audit
of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City's
compliance with the compliance requirements referred to above.
Responsibilities ofManagementfor Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations,
rules, and provisions of contracts or grant agreements applicable to the City's government programs.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Auditors' Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and
AB 2766 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it
would influence the judgment made by a reasonable user of the report on compliance about the City's compliance
with the requirements of the government program as a whole.
In performing an audit in accordance with GAAS, GovernmentAuditing Standards, and the AB 2766, we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City's compliance with the compliance requirements referred to above and performing
such other procedures as we considered necessary in the circumstances.
• obtain an understanding of the City's internal control over compliance relevant to the audit in order to design
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with AB 2766, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a compliance requirement will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the "Auditors'
Responsibilities for the Audit of Compliance" section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control over
compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that have not been identified.
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the AB 2766. Accordingly, this report is not suitable
for any other purpose.
Santa Ana, California
December 21, 2022
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10
FINANCIAL STATEMENTS
11
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12
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
Balance Sheet
June 30, 2022
ASSETS
Cash and investments $ 226,637
Interest receivable 417
Due from South Coast Air Quality Management District 72,874
Total assets $ 299,928
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities 14,406
Total liabilities 14,406
Fund Balance:
Restricted 285,522
Total fund balance 285,522
Total liabilities and fund balance $ 299,928
13
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
Statements of Revenues, Expenditures, and Change in Fund Balance
For the Year Ended June 30, 2022
Revenues:
Assembly Bill 2766 revenues $ 286,347
Investment income (loss) (4,021)
Total revenues 282,326
Expenditures:
Current:
Administrative
6,431
Air quality improvement program
168,751
Total expenditures
175,182
Excess of revenues over expenditures
107,144
Net change in fund balance
107,144
Fund Balance:
Beginning of year
End of year
178,378
$ 285,522
14
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements
For the Year Ended June 30, 2022
Note 1— Financial Reporting Entity and Summary of Significant Accounting Policies
A. Financial Reporting Entity
The financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund") of the City of Santa
Clarita, California (the "City") are prepared in accordance with accounting principles generally accepted in the
United States of America ("U.S. GAAP"). 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.
B. Fund Accounting
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 (the "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.
C. Financial Statements Presentation, Basis of Accounting and Measurement Focus
The fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Change in
fund balance. Special Revenue 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.
15
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
D. Cash and Investments
The Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's
Treasurer 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.
E. 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 these
restricted net resources.
F. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
these estimates and assumptions.
Note 2 — Cash and Investments
The Fund's share of the City's pooled cash and investments at June 30, 2022 is $226,637.
Cash is deposited in the City's internal investment pool, which is reported at the amortized cost. The Fund does not
own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances.
Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City's
basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for
cash and investments.
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, 2022, the Fund's due from SCAQMD totaled $72,874.
16
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 4 — Commitments and 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.
17
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18
SUPPLEMENTARY INFORMATION
19
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20
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual
For the Year Ended June 30, 2022
Revenues:
Assembly Bill 2766 revenues
Investment income (loss)
Total revenues
Expenditures:
Current:
Adminstrative
Air Quality Improvement Program
Total expenditures
Net change in fund balance
Fund Balance:
Beginning of year
End of year
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 280,957 $
280,957 $
286,347 $
5,390
1,941
1,941
(4,021)
(5,962)
282,898
282,898
282,326
(572)
8,801 8,801 6,431 2,370
13,300 190,895 168,751 22,144
22,101 199,696 175,182 24,514
$ 260,797 $ 83,202
107,144 $ 23,942
178,378
$ 285,522
21
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22
Open Space Preservation District
Special Revenue Fund
of the City of Santa Clarita
Santa Clarita, California
Financial Statements
and Independent Auditors' Reports
For the Year Ended June 30, 2022
THE �
PUN GROUP
ACCOUNTANTS & ADVISORS
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
For the Year Ended June 30, 2022
Table of Contents
Page
IndependentAuditors' Report..............................................................................................................................1
Financial Statements:
BalanceSheet.....................................................................................................................................................7
Statement of Revenues, Expenditures and Change in Fund Balance................................................................. 8
Notesto the Financial Statements...................................................................................................................... 9
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .............................15
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Audit of the Financial Statements
Opinion
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
We have audited the accompanying financial statements of the Open Space Preservation District Special Revenue
Fund (the "Fund") of the City of Santa Clarita, California (the "City") as of and for the year ended June 30, 2022,
and the related notes to the financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position
of the Fund as of June 30, 2022, and the change in its financial position for the year then ended, in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
("GAAS"), and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States ("Government Auditing Standards"). Our responsibilities under those
standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
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, 2022, 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.
Responsibilities of Managementfor 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, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Auditors' Responsibility for the Audit of'the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually
or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,
we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified
during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming opinion on the Fund `s financial statements. The Schedule of
Revenues, Expenditures, and Change in Fund Balance - Budget and Actual are presented for purposes of additional
analysis and are not a required part of the financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Revenues,
Expenditures, and Change in Fund Balance - Budget and Actual is fairly stated, in all material respects, in relation to
the financial statements as a whole.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2022, 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.
Santa Ana, California
December 21, 2022
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FINANCIAL STATEMENTS
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Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Balance Sheet
June 30, 2022
ASSETS
Cash and investments $ 6,848,562
Receivables
Interest 12,593
Taxes 108,627
Total assets $ 6,969,782
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities $ 134,569
Total liabilities 134,569
Fund Balance:
Restricted for Open Space Preservation 6,835,213
Total fund balance 6,835,213
Total liabilities and fund balance $ 6,969,782
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Statement of Revenues, Expenditures, and Change in Fund Balance
For the Year Ended June 30, 2022
Revenues:
Special assessments
$ 3,051,349
Charges for services
12,272
Investment (loss)
(158,772)
Other revenue
4,271
Total revenues
2,909,120
Expenditures:
Current:
Open Space Preservation 801,171
Capital Outlay 1,047,423
Total expenditures 1,848,594
Excess of revenues over expenditures 1,060,526
Other Financing (Uses):
Transfers to the City (803,341)
Net change in fund balance 257,185
Fund Balance:
Beginning of year 6,578,028
End of year $ 6,835,213
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements
For the Year Ended June 30, 2022
Note 1— Organization and Summary of Significant Accounting Policies
A. Financial Reporting Entity
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 (the "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. 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.
B. Fund Accounting
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.
C. Financial Statements Presentation, Basis of Accounting and Measurement Focus
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.
D. Cash and Investments
The Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's
treasurer 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.
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
E. 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.
F. 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 these
restricted net resources.
G. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates
and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
these estimates and assumptions.
Note 2 — Cash and Investments
The Fund's share of the City's pooled cash and investments at June 30, 2022 was in the amount of $6,848,562.
Cash is deposited in the City's internal investment pool, which is reported at the amortized cost. The Fund does not
own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances.
Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City's
basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for
cash and investments.
10
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2022
Note 3 — Transfers to Other Funds of the City of Santa Clarita
The Fund made transfers to the City's Public Financing Authority Debt Service Fund in the amount of $785,706 for
current year debt service payments for the Lease Revenue Bond Series 2016B. As of June 30, 2022, $12,020,000 was
outstanding. Revenues from the Fund are pledged for repayment of the bonds, but the City is not obligated to require
additional amounts from the Fund in event the revenues of the fund are insufficient for bond repayment. Additional
information regarding the Lease Revenue Bond Series 2016B is presented in the City's Annual Comprehensive
Financial Report.
The Fund also made transfers to the City's General Fund in the amount of $17,635 toward the Fund's share of pension
contribution.
m
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12
SUPPLEMENTARY INFORMATION
13
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14
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual
For the Year Ended June 30, 2022
Budget Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Revenues:
Special assessments
$ 3,024,693 $
3,024,693 $
3,051,349 $
26,656
Charges for services
85,627
85,627
12,272
(73,355)
Investment income
100,443
100,443
(158,772)
(259,215)
Other revenue
-
-
4,271
4,271
Total revenues
3,210,763
3,210,763
2,909,120
(301,643)
Expenditures:
Operating:
Personnel
333,386
341,942
312,443
29,499
Operations and maintenance
439,288
550,088
488,728
61,360
Capital outlay
-
2,765,445
1,047,423
1,718,022
Total expenditures
772,674
3,657,475
1,848,594
1,808,881
Excess of revenues over expenditures
2,438,089
(446,712)
1,060,526
1,507,238
Other Financing Uses:
Transfers out
(803,341)
(803,341)
(803,341)
-
Net change in fund balance
$ 1,634,748 $
(1,250,053)
257,185 $
1,507,238
Fund Balance:
Beginning of year
6,578,028
End of year
$
6,835,213
15
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16
City of Santa Clarita
Santa Clarita, California
Single Audit and
Independent Auditors' Reports
For the Year Ended June 30, 2022
THE �
PUN GROUP
ACCOUNTANTS & ADVISORS
City of Santa Clarita
Single Audit and Independent Auditors' Reports
For the Year Ended June 30, 2022
Table of Contents
Page
Independent Auditors' Reports:
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards...................................................................1
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on the Schedule
of Expenditures of Federal Awards Required by the Uniform Guidance....................................................3
Schedule of Expenditures of Federal Awards.............................................................................................................7
Notes to the Schedule of Expenditures of Federal Awards........................................................................................ 8
Schedule of Findings and Questioned Costs............................................................................................................. 10
This page intenfionaffy left blank
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa (M
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
Independent Auditors' Report
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States ("Government Auditing Standards"), the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of
Santa Clarita, California (the "City"), as of and for the year ended June 30, 2022, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated
December 21, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion
on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses and significant deficiencies may exist that have not
been identified.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Santa Ana, California
December 21, 2022
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California92707
www.pungroup.cpa
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Independent Auditors' Report
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Santa Clarita, California's (the "City") compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on each of the City's major federal programs for the year ended June 30, 2022. The City's major federal
programs are identified in the summary of the auditors' results section of the accompanying Schedule of Findings and
Questioned Costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that
could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America ("GAAS"); the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States ("Government Auditing Standards"), and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Our responsibilities under those
standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not
provide a legal determination of City's compliance with the compliance requirements referred to above.
Responsibilities ofManagementfor Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations,
rules, and provisions of contracts or grant agreements applicable to City's federal programs.
ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Auditors' Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and
the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material
noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually
or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the
City's compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding the City's compliance with the compliance requirements referred to above and performing such
other procedures as we considered necessary in the circumstances.
• obtain an understanding of the City's internal control over compliance relevant to the audit in order to design
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does
not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect
and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditors'
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over
compliance. Given these limitation, during our audit we did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City as of and for the year ended June 30, 2022, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our
report thereon dated December 21, 2022, which contained unmodified opinions on those financial statements. Our
audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes
of additional analysis as required by Uniform Guidance and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the 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 GAAS. In our opinion, the Schedule of Expenditure of Federal Awards is fairly stated in all material
respects in relation to the basic financial statements as a whole.
Santa Ana, California
December 21, 2022
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City of Santa Clarita
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
Federal Grantor/Pass-Through
Grantor Program Title
U.S. Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster
Direct Programs:
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/Entitlement Grants
COVID-19 - Community Development Block Grants/Entitlement
Grants - CARES Act
Total CDBG - Entitlement Grants Cluster
Total U.S. Department of Housing and Urban Development
U.S. Department of Justice
Direct Program:
Edward Byrne Memorial Justice Assistance Grant Program
Edward Byrne Memorial Justice Assistance Grant Program
Total Edward Byrne Memorial Justice Assistance Grant Program
Total U.S. Department of Justice
U.S. Department of Transportation
Highway Planning and Construction Cluster
Pass -through the State of California Transportation Department:
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Total Highway Planning and Construction Cluster
Federal Transit Cluster
Direct Programs:
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Total Federal Transit - Formula Grants
Buses and Bus Facilities Formula, Competitive, and
Low or No Emissions Programs
Total Federal Transit Cluster
Total U.S. Department of Transportation
U.S. Department of the Treasury
Direct program:
COVID-19 - Emergency Rental Assistance Program
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Total U.S. Department of the Treasury
Total Expenditures of Federal Awards
Assistance Agency or
Listing Pass -Through Federal Expenditures
Number Number Expenditures to Subrecipients
14.218
B-16-MC-06-0576
1,590
14.218
B-17-MC-06-0576
48,275
14.218
B-18-MC-06-0576
277,282
-
14.218
B-21-MC-06-0576
528,027
387,791
14.218
B-20-MV-06-0576
197,950
150,736
1,053,124
538,527
1,053,124
538,527
16.738
2020-DJ-BX-0629
1,958
-
16.738
15PBJA-21-GG-01191-JAGX
20,028
-
21,986
-
21,986
-
20.205
HSIPL-5450(94)
277,835
-
20.205
BHLS-5450(101)
8,221
-
20.205
HSIPL-5450(098)
148,804
-
20.205
STPL-5450(099)
1,102,124
-
1,536,984
-
20.507
CA-90-Y276-02
487,824
-
20.507
CA-2016-051-00
527,982
-
20.507
CA-2017-138-00
2,437,970
-
20.507
CA-2018-089-00
62,916
-
20.507
CA-2019-125-00
5,030,428
-
20.507
CA-2021-193-00
228,917
-
8,776,037
-
20.526
CA-2019-125-00
-
341,797
-
9,117,834
-
10,654,818
-
21.023
1505-0266
3,944,950
-
21.027
1505-0271
10,264,192
-
14,209,142
-
$ 25,939,070
$ 538,527
7
City of Santa Clarita
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2022
Note 1— Reporting Entity
The financial reporting entity, as defined by the Governmental Accounting Standards Board ("GASB") Codification,
consists of the primary government, which is the City of Santa Clarita, California (the "City"), organizations for which
the primary government is financially accountable, and other organizations for which the nature and significance of
their relationship with the primary government are such that exclusion would cause the City's financial statements to
be misleading or incomplete.
The City Council acts as the governing body and is able to impose its will on the following organization, establishing
financial accountability:
• The Santa Clarita Public Financing Authority
• The Santa Clarita Public Television Authority
Note 2 — Summary of Significant Accounting Policies
Basis of Accounting
Funds received under the various grant programs have been recorded within the General Fund, special revenue funds
and enterprise fund of the City. The City utilizes the modified accrual basis of accounting for the General Fund and
special revenue funds and the accrual basis of accounting for the enterprise funds. The accompanying Schedule of
Expenditures of Federal Awards (the "Schedule") is presented in accordance with the requirements of Title 2 U.S.
Code of Federal Regulations ("CFR') Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in the Schedule may
differ from amounts presented in, or used in, the preparation of City's basic financial statements.
Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal
financial assistance received directly from federal agencies, as well as federal financial assistance passed through the
State of California Transportation Department are included in the Schedule. The Schedule was prepared from only the
accounts of various grant programs and, therefore, does not present the financial position or results of operations of the
City.
Indirect Cost Rate
The City did not elect to use the 10% de minimis cost rate.
City of Santa Clarita
Notes to the Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2022
Note 3 — Subrecipients
During the year ended June 30, 2022, the City has the following subrecipients:
CFDA
Amount Provided
Numbers Program Name / Subrecipient Name
to Subrecipients
14.218 Community Development Block Grants / Entitlement Grants
Santa Clarita Valley Senior Center
$ 279,403
Carousel Ranch Inc.
20,730
Single Mothers Outreach
24,869
Family Promise of Santa Clarita
75,000
Fostering Youth Independence
45,043
Bridge To Home
29,026
Boys & Girls Club of Santa Clarita
23,200
YMCA Childcare
41,256
$ 538,527
9
City of Santa Clarita
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2022
Section I — Summary of Auditors' Results
Financial Statements
Types of report the auditors issued on whether the financial statements
audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? No
• Significant deficiency(ies) identified? None Reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? No
• Significant deficiency(ies) identified? None Reported
Type of auditors' report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? No
Identification of major federal programs:
Assistance Listing
Federal
Numbers Major Federal Program or Cluster
Expenditures
20.205 Highway Planning and Construction Cluster
$ 1,536,984
20.507 / 20.526 Federal Transit Cluster
9,117,834
21.023 COVID-19 - Emergency Rental Assistance Program
3,944,950
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
10,264,192
Total Expenditures of All Major Federal Programs
$ 24,863,960
Total Expenditures of Federal Awards
$ 25,939,070
Percent of Total Expenditures of Federal Awards
95.86%
Dollar threshold used to distinguish between type A and type B programs:
$778,230
Auditee qualified as a low -risk auditee in accordance with 2 CFR 200.520?
Yes
10
City of Santa Clarita
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2022
Section II — Financial Statement Findings
A. Current Year Findings — Financial Statement
No current year findings were reported.
B. Prior Year Findings — Financial Statement
No prior year findings were reported.
Section III — Federal Award Findings and Questioned Costs
A. Current Year Findings and Questioned Costs —Major Federal Award Program Audit
No current year findings were reported.
B. Prior Year Findings and Questioned Costs — Major Federal Award Program Audit
No prior year findings were reported.
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