HomeMy WebLinkAbout2024-01-23 - AGENDA REPORTS - FY 2022-23 ACFRO
Agenda Item: 5
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: TAA,/�
DATE: January 23, 2024
SUBJECT: FISCAL YEAR 2022-23 ANNUAL COMPREHENSIVE FINANCIAL
REPORT AND OTHER RELATED REPORTS
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston
RECOMMENDED ACTION
City Council approve the Annual Comprehensive Financial Report and other related reports for
fiscal year ending June 30, 2023.
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, 2023. 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, 2023.
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, 2023, by The
Pun Group, LLP:
Appropriations Limit Calculation
City of Santa Clarita Air Quality Improvement Fund
Santa Clarita Open Space Preservation District
Single Audit Report
Transit Enterprise Fund of the City of Santa Clarita
City of Santa Clarita Measure W Safe Clean Water Fund for the years ended June 30,
2023, 2022 and 2021
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
There is no fiscal impact.
ATTACHMENTS
Annual Comprehensive Financial Report 06-30-2023 (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)
Appropriations Limit Calculation 06-30-2023 (available in the City Clerk's Reading File)
Air Quality Improvement Fund 06-30-2023 (available in the City Clerk's Reading File)
Open Space Preservation District 06-30-2023 (available in the City Clerk's Reading File)
Single Audit Report 06-30-2023 (available in the City Clerk's Reading File)
Transit Enterprise Fund 06-30-2023 (available in the City Clerk's Reading File)
Measure W Safe Clean Water for the years ended June 30, 2023, 2022 and 2021 (available in the
City Clerk's Reading File)
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ANNUAL
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FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 309 2023
CITY OF SANTA CLARITA, CALIFORNIA
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City of Santa Clarita, California
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Prepared by the Finance Division
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION (Unaudited
Paae
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
U
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Paae
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:
Ca1PERSMiscellaneous................................................................................................................................110
Schedule of'City Contributions —Pensions:
Ca1PERSMiscellaneous................................................................................................................................112
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios:
Other Postemployment Benefits ("OPEB")...................................................................................................114
Schedule of Contributions — Other Postemployment Benefits("OPEB').........................................................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:
BikewaySpecial Revenue Fund..............................................................................................................149
GasTax 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, 2023
Table of Contents (Continued)
Paae
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
City of Santa Clarita
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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 Values of Taxable Property...............................................................................
214
Redevelopment Agency — Assessed Valuation and Actual Values 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........................................................
223
PrincipalProperty Taxpayers...............................................................................................................................
224
Property Tax Levies, Tax Collections and Delinquencies....................................................................................226
Top Property Owners Based on Net Values.........................................................................................................
227
Project Area Assessment Appeals Summary and Tax Collection History...........................................................
229
Charge Detail Report for CFD 2002-1 (Valencia Town Center)..........................................................................230
Debt Capacity:
Ratios of Outstanding Debt by Type....................................................................................................................
232
Ratios of General Bonded Debt Outstanding.......................................................................................................
234
Direct and Overlapping Tax and Assessment Debt..............................................................................................235
LegalDebt Margin Information...........................................................................................................................236
PledgedRevenue Coverage..................................................................................................................................238
Demographic and Economic Information:
Demographic and Economic Statistics.................................................................................................................
239
Operating Information:
PrincipalEmployers.............................................................................................................................................
240
Full -Time and Part -Time City Employees by Function.......................................................................................
241
OperatingIndicators by Function.........................................................................................................................
242
Capital Asset Statistics by Function.....................................................................................................................
244
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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, 2022
Executive Director/CEO
v
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vi
City of
SANTA GLARITA
23920 Valencia Boulevard • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
www.santa-clarita.com
December 21, 2023
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, 2023, 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, 2023. 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
Honorable Mayor, Mayor Pro Tern and City Councilmembers
meet the special needs of the federal grantor agencies. The standards governing the Single
Audit engagements require that the independent auditor report on the fair presentation of
the financial statements and the audited government's internal controls and compliance
with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in the City's
separately issued Single Audit Report.
CITY PROFILE
The City of Santa Clarita was incorporated on December 15, 1987, as a General Law City
and operates under a City Council/City Manager form of government. It is located between
the Santa Susana and San Gabriel mountain ranges, approximately 35 miles northwest
from the City of Los Angeles. It is comprised of the communities of Canyon Country,
Newhall, Saugus and Valencia, encompassing approximately 73.5 square miles. With a
population of 230,659, the City is the third -largest in Los Angeles County and the 16'
largest in the State of California. Santa Clarita offers an expansive parks and recreation
network, with 37 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 to four-year overlapping
terns, with elections held bi-annually. Beginning in 2024, the council elections will
transition to by -district elections. 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.
Budgetary control for the City is maintained through its accounting systems. Once
Honorable Mayor, Mayor Pro Tern and City Councilmembers
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 (City) 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.
The City of Santa Clarita was once again named the "Most Business -Friendly City in Los
Angeles County" in 2022 by the Los Angeles County Economic Development Corporation
and continues to have 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. These practices have
positioned Santa Clarita well for the future.
The Center at Needham Ranch, a business park on Sierra Highway in the Newhall area,
was approved by the City Council in 2003 and will ultimately construct approximately 1.7
million square feet of state-of-the-art business park space. After more than 20 years in
planning and development, Phase I is operational, with seven buildings built, and Phase 11
is nearing completion, adding four more buildings. Phase I includes Illumination
Dynamics, LA North Studios, DrinkPAK, Amazon and Tires Warehouse as its tenants and
is fully occupied. Phase II will include additional facilities for Amazon and DrinkPAK.
Santa Clarita Valley's newest community, Vista Canyon, continues to develop. 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 245 single-family
homes by KB Home has recently been completed and all have been sold, and the Vista
Canyon Park and a 480-unit luxury apartment complex were also completed in 2022.
Additionally, the Vista Canyon Multi -Modal Center officially opened on October 20,
2023. This is the fourth Metrolink station in the City and the second transit center, and will
serve local commuter, local bus routes, GO! Santa Clarita and Dial -A -Ride. The Multi -
Modal Center features state-of-the-art infrastructure, brand-new railroad tracks, benches,
six bus bay canopies, lighting, a security system, 18 digital bike lockers, two touchscreen
informational kiosks and free parking.
Santa Clarita's economy remains strong and many new businesses have opened in our
community this year. These include The Flying Yolk, Total Wine & More, AT2
Aerospace, Brick and Flour Artisanal Mexican Food, Patron's Mexican Bar & Grill, Apola
Greek Grille, Boba Boba, Dollar Tree, Capriotti's, Urbane Cafe, Copper Hill BBQ,
Monty's Sports and Grill, Aldi and Madre Oaxacan Restaurant. Businesses slated to open
later in the year include Wild Fork, Mooyah Burger, Philz Coffee, Farmer Boys, The
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Honorable Mayor, Mayor Pro Tern and City Councilmembers
Break Room, Sbarro Pizza, Beverly Hills Rejuvenation Center Med Spa, DogHaus,
Pinkberry, The Kebab Shop, Daiso and Mi Cafecito Pupuseria Y Restaurante.
Specifically, in Old Town Newhall, a number of new businesses have opened, including
Form+Content, Care Tucker, Brixton Phoenix, Sidecar Market and Victory Pizza Bar.
Commercial vacancy rates in offices within Santa Clarita have risen slightly compared to
the third quarter of last year, with the office vacancy rate at 15.4 percent, compared to 13.8
percent in 2022. Retail vacancy rates have fallen slightly, with the retail vacancy rate at 3.3
percent, compared to 4.8 percent in 2022. There continues to be high demand for industrial
space, and the industrial vacancy rate sits at a low of 0.6 percent, only slightly higher
compared to 0.2 percent last year.
The City's Film Office experienced another strong year prior to the Writers Guild of
America and Screen Actors Guild/American Federation of Television and Radio Artists
strikes. In Fiscal Year 2022-23, the Film Office issued 539 permits, which led to 1,336
film days and $31,951,000 in estimated economic impact. Santa Clarita is home to
approximately 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," "Expats," "Good Trouble," "NCIS," "Mayans M.C.," "The
Old Man" and "S.W.A.T.," were based in Santa Clarita, while shows like "Curb Your
Enthusiasm," "Muppets Mayhem," Tiny Beautiful Things," "The Santa Clauses," "Ted
Lasso" and "The Morning Show" regularly filmed on location within the City. Numerous
feature films were filmed at sound stages and at movie ranches in Santa Clarita in the last
year, including "80 For Brady," "Air," "Creed 3," "Dungeons & Dragons - Honor Among
Thieves," "The Fabelmans" "The Killer," "Old Dads," "Oppenheimer" and "Rebel Moon."
Tourism continues to be a significant part of the City of Santa Clarita's economy,
contributing over $5.3 million to the General Fund from Transient Occupancy Tax in
Fiscal Year 2022-23, a record high. The Tourism Marketing District (TMD), a
collaborative assessment program and partnership between the City and local hotels,
collected nearly $1 million 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: multiple hockey tournaments including the CAHA State
Championships, Grace Baptist Bible Conference, Cal Super States Chess Championship,
SteadicamOperators Workshop, TMU Cross Country Invitational and USW National
Championship (women's football). The City also attracted large swimming events, Los
Angeles Spartan Sprint Weekend and major festivals, including "Boots and Brews" and
"Boots in the Park."
Santa Clarita recognizes the important role education plays in the success of the
community. The City is home to three premier educational institutions, including the
California Institute of the Arts (CalArts), College of the Canyons and The Master's
Honorable Mayor, Mayor Pro Tern and City Councilmembers
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 aged 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 April 2023, Standard & Poor's Global Ratings (S&P) affirmed the City's 'AAA' issuer
credit rating (ICR). The City was able to demonstrate strength in economy and
management areas, as well as strong budgetary flexibility and liquidity with an operating
surplus. Standard & Poor's Global Ratings recognized the City's budgetary flexibility as
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
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Honorable Mayor, Mayor Pro Tem and City Councilmembers
City's overall creditworthiness and the capacity and willingness to meet financial
obligations.
OR MILESTONES IN FISCAL YEAR 2022-2023
Completed the construction of the Central Park Buildout Project which brought
four new multi -purpose fields, additional parking, a new restroom facility and the
popular 172-step exercise staircase to the southern portion of the park.
Opened the new Vista Canyon Multi -Modal Center offering the City's fourth
Metrol ink station and a bus transfer station to provide transit service to underserved
communities.
Welcomed its second inclusive play area at West Creek Park. The project includes
a shaded inclusive play area with fun, challenging and engaging activities for
people of all abilities, measuring approximately 10,600 square feet upon
completion. It also includes an outdoor community fitness area and a Bankshot
Playcourt, which offers basketball hoops at varying heights with non -
conventionally angled backboards.
Kicked off the Citywide Energy Efficiency Project. Lighting, HVAC control and
irrigation projects have already been completed and work is currently underway on
solar infrastructure installation.
Acquired and begun renovations on the new Valencia Community Center. When it
opens its doors to residents in 2024, it will be the third community center in Santa
Clarita.
Held the first Make a Difference Day. This event coincides with National
Community Service Day and hundreds of residents took part, taking on projects
such as painting, organizing and building items for our local non -profits.
The Building and Safety Division issued 6,920 permits and performed more than
43,650 building inspections for over $302 million of new construction.
AWARDS AND ACKNOWLEDGEMENTS
The City of Santa Clarita continued to receive accolades over the last year. This year,
Santa Clarita was named the 41h Safest City in America by SmartAsset, the 5th Best City in
the Nation for Women by Wallethub, the 81h Best City for Hispanic Entrepreneurs by
Wallethub, the 3I't Happiest City in the Nation by Wallethub and was recognized as the
Most Business -Friendly City by the Los Angeles Economic Development Corporation.
This last year marked the 32°d consecutive year that Santa Clarita was designated as a Tree
City USA by the National Arbor Day Foundation. This year, the City was also recognized
with five California Association of Public Information Officials and five City -County and
Marketing Association awards.
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Honorable Mayor, Mayor Pro Tern and City Councilmembers
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 Financial Report (ACFR) for the fiscal year
ended June 30, 2022. This was the 34"' 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 f'or 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 f'or 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 2023-24 Investment Policy. This year marks the 29"' consecutive year that the
City has received the nationally recognized Certificate of Excellence Award from the
Association of Public Treasurers of the United States and Canada for its success in
developing a comprehensive written investment policy. In order to receive certification,
investment policies must be carefully reviewed by the association's Investment Policy
Certification Committee. For a policy to receive certification, it must be approved by all
reviewers on 1S 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
13t" 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
Matthew Curtis; 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 Tern; 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;
X111
Honorable Mayor, Mayor Pro Tern and City Councilmembers
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
CM:BH:jb
S \FIN\CAFR\ACFR 23\MD&A, Transmittal Letter\Transmittal Letter FY 2022-23BH Edits docx
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OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2023
City Council
Jason Gibbs
MAYOR
Cameron Smyth
MAYOR PRO TEM
Bill Miranda
COUNCILMEMBER
Marsha McLean
COUNCILMEMBER
Laurene Weste
COUNCILMEMBER
City Officials
Ken Striplin
CITY MANAGER
Frank Oviedo
ASSISTANT CITY MANAGER
Joseph Montes
CITY ATTORNEY
DIRECTOR OF ADMINISTRATIVE
Carmen Magana
SERVICES
DIRECTOR OF ECONOMIC
Tom Cole
DEVELOPMENT
Jerrid McKenna
DIRECTOR OF NEIGHBORHOOD
SERVICES
DIRECTOR OF PUBLIC WORKS/CITY
Mike Hennawy
ENGINEER
DIRECTOR OF RECREATION AND
Janine Prado
COMMUNITY SERVICES
DIRECTOR OF COMMUNITY
Jason Crawford
DEVELOPMENT
Kristi Hobrecker
DIRECTOR OF HUMAN RESOURCES AND
LIBRARY SERVICES
COMMUNICATIONS DIVISION
Carrie Lujan
MANAGER/PIO
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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, 2023, 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, 2023, 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 auditors' 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 be presented to supplement the basic
financial statements. Such information is the responsibility of management and, 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 accompanying 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 auditors' 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, 2023, 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, 2023
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MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited)
Fiscal Year Ended June 30, 2023
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, 2023. 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 $1.6 billion. Of this amount, $199.3 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 $40.7 million and deferred inflows of resources total $27.5
million.
• The City's total deferred outflows of resources increased by $16.9 million. The deferred inflows of resources
decreased by $20.9 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 $79.8 million. Net position of the business -type activities increased
by $3.5 million, and the net position of the governmental activities increased by $76.3 million (Table 1 & 2).
• The net capital assets of the City's governmental activities increased by $40.7 million, or 3.5% over last
fiscal year. The increase was in part due to an increase of $4.5 million in site improvements, an increase of
$21.6 million in construction in progress and $14.9 million in Infrastructure which includes the Tesoro del
Valle annexation. 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 $421 million. This represents an increase of $45 million as compared to the prior year.
• Within governmental funds, the General Fund reported a fund balance of $268 million, an increase of $39
million over the prior year. This increase is attributed to the City's issuance of bonds to fund an energy
efficiency project and an accumulation of funds for the continued construction of future facilities as outlined
in the Santa Clarita 2025 Strategic Plan.
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 91 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 $79.8 million, increasing from $1.50 billion to $1.58 billion.
THE CITY AS A WHOLE (CONTINUED)
TABLE 1
CITY OF SANTA CLARITA'S NET POSITION
Governmental Activities
Business -type Activities
Total
2023
2022'
2023
2022
2023
2022'
ASSETS:
Current and Other Assets
$ 461,479,196
$ 428,661,383
$ 15,484,464 $
14,655,474
$ 476,963,660
$ 443,316,857
Capital assets, net
1,197,956,002
1,157,259,673
96,692,691
95,597,321
1,294,648,693
1,252,856,994
Noncurrent Assets
50,239,381
29,691,980
123,020
64,927
50,362,401
29,756,907
TOTAL ASSETS
1,709,674,579
1,615,613,036
112,300,175
110,317,722
1,821,974,754
1,725,930,758
DEFERREDOUTFLOWS OF RESOURCES:
39,409,551
23,126,064
1,291,206
670,483
40,700,757
23,796,547
LIABILITIES:
Noncurrent Liabilities
187,488,294
131,950,456
1,445,889
86,839
188,934,183
132,037,295
Other Liabilties
63,740,323
65,017,652
3,527,921
5,072,443
67,268,244
70,090,095
TOTAL LIABILITIES
251,228,617
196,968,108
4,973,810
5,159,282
256,202,427
202,127,390
DEFERRED INFLOWS OF RESOURCES:
26,876,098
47,050,514
592,840
1,314,290
27,468,938
48,364,804
NET POSITION:
Net investment in
capital assets
1,124,934,271
1,080,870,581
96,692,691
95,597,321
1,221,626,962
1,176,467,902
Restricted
158,032,140
152,349,197
-
-
158,032,140
152,349,197
Unrestricted
188,013,004
161,500,700
11,332,040
8,917,312
199,345,044
170,418,012
TOTAL NET POSITION
$1,470,979,415
$1,394,720,478
$ 108,024,731 $
104,514,633
$1,579,004,146
$1,499,235,111
'Net Position, as restated
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, 2023, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources
by $1.58 billion. The largest component of the City's net position, 77.4%, is represented by its $1.20 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, 10.0% represents resources subject to external restrictions on how
they may be used. The remaining 12.6% of unrestricted net position, $199.3 million, may be used to meet the City's
ongoing obligations to citizens and creditors. Within the restricted section of net position, $1.76 million is related to
Vista Canyon Transit Center project bond proceeds, $429,128 is related to Streetlight bond proceeds, and $19.6
million is related to Energy Efficiency project 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 $76
million over the prior year. The unrestricted net position of the business -type activities increased by $2.4 million.
9
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities decreased by $13.3 million. The cost of all governmental activities this year
was $191.6 million, an increase of 7.19% over the past year. The large year over year changes within expense
categories is a result of the City's reorganization that occurred during FY 2022-2023. Special Districts and Libraries
were moved from Neighborhood Services to General Government, Building and Safety was moved from Public
Works to Community Development, and Open Space was moved from Recreation and Community Services to
Neighborhood Services. As shown in the Statement of Activities, the governmental activities expenses were
ultimately financed in part by the taxpayers, as $87.3 million in revenues were generated by service revenues received
from the performance of these activities; another $35.1 million was received from government agencies and other
organizations that subsidized certain programs with operating grants and contributions; and another $35.9 million in
revenues was generated from capital grants and contributions. The $32.8 million decrease in capital grants and
contributions is mainly attributed to the prior year recordation of Plum Canyon Park and Vista Canyon Park
contributed capital assets. In addition, a $7.3 million decrease in TDA Article 8 revenues due to current year street
and road projects being funded with more restrictive funding sources; $6.3 million decrease in Proposition C grants
and Surface Transportation Program grants as a result of one-time grant funded projects being completed in the prior
year; and a $1.8 million decrease in Measure W regional revenues as a result of one-time funds received for the
Newhall Park Infiltration and Park Improvement project in the prior year contributed to the decrease. Overall, the
City's governmental program and general revenues amounted to $276 million, which funded the expenses and
resulted in a $76 million increase in net position. The increase of $3.1 million in Property Taxes was due to higher
assessed property values. The increase of $6.5 million in Other is attributed to investment income and funds received
from a surety company to complete the Central Park Buildout project as a result of the contracted construction
company's default.
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-
Taxes -
Property taxes
Other taxes
Other
Total Revenues
General government
Public safety
Recreation and community services
Public w orks
Community development
Neighborhood services
Unallocated infrastructure depreciation
Interest and fiscal charges
Transit
Total Expenses
Governmental Activities
Business -type Activities
Total
2023
2022"
2023
2022
2023
2022'
$ 87,306,870 $
72,280,606
$ 6,499,657 $
5,936,598
$ 93,806,527 $
78,217,204
35,092,994
38,093,703
15,173,066
12,087,130
50,266,060
50,180,833
35,865,511
68,626,540
8,107,402
13,402,891
43,972,913
82,029,431
45,187,496
42,113,398
45,187,496
42,113,398
66,013,353
68,153,369
66,013,353
68,153,369
6,740,803
220,172
851,790
1,413,909
7,592,593
1,634,081
276,207,027
289,487,788
30,631,915
32,840,528
306,838,942
322,328,316
49,428,154
14,728,358
-
-
49,428,154
14,728,358
33,228,916
30,936,129
33,228,916
30,936,129
20,430,503
23,989,989
20,430,503
23,989,989
18,720,585
30,493,258
18,720,585
30,493,258
19,948,687
12,203,347
19,948,687
12,203,347
23,816,831
42,179,104
23,816,831
42,179,104
22,077,333
21,432,943
22,077,333
21,432,943
3,912,327
2,735,159
-
-
3,912,327
2,735,159
-
-
35,506,571
31,342,873
35,506,571
31,342,873
191,563,336
178,698,287
35,506,571
31,342,873
227,069,907
210,041,160
Increase/Decrease in Net Postion Before Transfers 84,643,691 110,789,501 (4,874,656) 1,497,655
Transfers (8,384,754) (8,097,818) 8,384,754 8,097,818
Changes in Net Position 76,258,936 102,691,683 3,510,098 9,595,473
Net Position — Beginning of Year 1,394,720,478 1,292,028,795 104,514,633 94,919,160
Net Position — End of Year, as restated' $ 1,470,979,414 $ 1,394,720,478 $ 108,024,731 $ 104,514,633
79,769,035 112,287,156
79,769,035 112,287,156
1,499,235,111 1,386,947,955
$ 1,579,004,146 $ 1,499,235,111
10
THE CITY AS A WHOLE (CONTINUED)
Business -Type Activities
Business -type activities increased the City's net position by $3.5 million for the current year. Business -type activities
revenues decreased by $2.2 million during the year for a total of $30.6 million in revenues, excluding transfers in
from governmental activities. The decreased revenue was largely due to an decrease in capital grants and
contributions for one-time federal grant revenues received in the prior year for transit buses and construction of the
Vista Canyon Metrolink Station. Related transit activity expenses increased by $4.2 million mainly due to increased
contracted bus operation costs.
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $421 million, an
increase of $45.5 million over the prior year. Approximately $179 million is restricted and already reserved for
specific restricted purposes.
The total governmental fund balance includes the general fund balance of $268 million. The General Fund is the chief
operating fund of the City. The unassigned fund balance of $63.7 million is available for spending at the City's
discretion. More detailed information about the City's classification of fund balances are presented in Note 18 to the
financial statements.
Other major fund balance changes are noted below:
• The Bridge and Thoroughfare Fund has realized an increase of $134,341 in its fund balance from prior year.
The increase was due to higher interest earnings as a result of higher interest rates.
• The Developer Fee Fund has realized an increase of $618,277 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 values and investment income.
• The Landscape Maintenance District's fund balance increased by $1.3 million from the prior year mainly
due consumer price index (CPI) increases to special assessments and a fund balance transfer from Los
Angeles County as a result of the Tesoro del Valle annexation.
• In the current year, the American Rescue Plan Fund continues to be 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 $2.5 million as a result of accumulating Measure M and Measure R Local Return funds for the City's annual
overlay slurry projects.
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 $3.5 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 $2.4 million from the
prior year.
The Internal Service Funds net position increased by $1.2 million or 11.4%. The ending fund balance for Internal
Service Funds is $12.0 million, of which $10.3 million is unrestricted.
11
THE CITY'S FUNDS (CONTINUED)
General Fund Budgetary Highlights
Comparison of the fiscal year 2022-2023 original (adopted) general fund budgeted expenditures and transfers of
$128.6 million to the final budgeted expenditures of $177 million results in a net increase of $48.4 million.
Included in this net increase is $3.1 million committed purchase orders and contracts from the prior June 30 balance,
as well as $666,939 of prior fiscal year operating and capital improvement projects approved for carryover into fiscal
year2022-2023.
Original Budget Continued Encumbrances Beg. Balance - Supplemental Final Budget
+ Appropriations + = Changes =
$128,569,396 + $666,939+ $3,072,997 = $132,309,332 + $ 44,698,153 = $177,007,485
Comparing the beginning budget of $129 million with the final budget of $177 million indicates the General Fund
had supplemental budgetary increase of $48 million during the fiscal year. The budgetary increase was primarily due
to adjusting the funding source for Energy Efficiency project from General Fund subsequent to Energy Efficiency
Bond issuance. Included in the supplemental appropriations are the results of this year's budget review.
During the mid -year budget review, budgeted general fund revenue had an increase of $1.9 million, inclusive of
transfers in. Included in the increase is sales tax and transient occupancy tax for $800,000 each; $600,000 in contract
classes attributed to the strong community demand for recreation classes; $300,000 in other revenue attributed to
waste hauler reimbursement of the City's request for proposal process cost; $215,000 in youth sports registration due
to increased participation; $140,000 in film permit road use for increased studio parking; $62,207 for SB90 claims
reimbursement from the State of California; and $1.0 million reduction in real property transfer tax resulting from
reduced home sales.
At year-end, the City's actual general fund revenues were $8.5 million more than the final budgetary estimates. Actual
general fund expenditures were less than the final budgetary estimates by $49.5 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 $1.3 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.96 during the year which resulted
in reporting additional intangible assets of $2.9 million. Additional information on the City of Santa Clarita's
implementation of new GASB pronouncement can be located in Note 1 to the financial statements.
12
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Capital Assets (Continued)
TABLE 3
CITY OF SANTA CLARITA'S CAPITAL ASSETS (net of depreciation)
Land
Construction in progress
Infrastructure, net
Depreciable site improvements, net
Depreciable building and
improvements, net
Depreciable equipment, net
Intangible asset, net
TOTALS
"As restated
Governmental Activities
2023 2022"
$ 260,562,680 $ 258,886,797
55,464,586 33,825,759
645,663,216 630,779,944
51,899,472 47,424,345
175, 904, 560 177,178, 354
5,026,964 4,680,629
3,434,524 4,483,845
$ 1,197,956,002 $ 1,157,259,673
Major capital asset events during the year included:
Business Type
Activities
2023
2022
$15,087,880
$ 15,087,880
15, 933, 925
14,121,301
6,268,360 6,836,581
Total
2023 2022"
$ 275,650,560 $ 273,974,677
71,398,511 47,947,060
645, 663, 216 630, 779, 944
58,167, 832 54, 260, 926
29,252,614 29,155,395 205,157,174 206,333,749
30,149,912 30,396,164 35,176,876 35,076,793
- - 3,434,524 4,483,845
$96,692,691 $ 95,597,321 $ 1,294,648,693 $ 1,252,856,994
• Infrastructure had a net increase totaling $14.9 million, inclusive of the City's annexation of Tesoro del Valle.
• Construction in progress had a net increase totaling $23.5 million due to the commencement of the City's
Energy Efficiency Project and construction of the Vista Canyon Ranch Metrolink Station.
• Depreciable site improvements had a net increase totaling $3.9 million as a result of the Aquatic Center Pool
Deck Replacement project and ice rink facility improvements at The Cube Ice and Entertainment Center.
• Intangible asset -right of use increased by $1 million following the restatement of the prior fiscal year due to
the implementation of GASB Statement No.96 in the current fiscal year.
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 $108.3 million in bonds, financed purchase notes, lease payable,
subscription payable, 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
Subscription Payable
Compensated Absences
Claims Payable
TOTAL
*As restated
Governmental Activities
2023 2022"
$ 13, 799, 814 $
14,135, 783
78,753,621
61,626,658
97,376
129,277
544,549
880,316
2,843,206
3,605,688
4,718,161
4,071,368
7,440,596
4,645,360
$108,197,323 $
89,094,450
Business -type Activities
2023 2022
136,656 142,765
$ 136,656 $142,765
Total
2023
2022"
$ 13,799,814 $
14,135,783
78, 753, 621
61, 626, 658
97,376
129,277
544,549
880,316
2,843,206
3,605,688
4,854,817
4,214,133
7,440,596
4,645,360
$ 108,333,979 $
89,237,215
13
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Debt Administration (Continued)
The City's governmental activities had $108.2 million in debt at year-end. Governmental activities long-term debt
increased overall by $19.1 million. The increase in long-term debt is a result of issuing lease revenue bonds totaling
$18.8 million for the City's Energy Efficiency project. The City also adopted GASB Statement No.96 during the year
which resulted in a subscription liability of $2.8 million as of June 30, 2023. 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.
During the fiscal year ended June 30, 2023, 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, 2023 was $1,550,877,339. 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.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
Our long history of conservative and strategic budget practices has allowed the City to maintain a balanced budget
every year. Since the Great Recession, our organization has understood that there will continue to be economic peaks
and valleys, and we need to be prepared and positioned for times when the economy is weak.
• General Fund sales tax revenue continues to be one of the largest revenue source to operate general
governmental functions, accounting for 33% or $46.7 million as projected in the 2023-2024 mid -year budget.
• Property tax revenues account for 33% of the General Fund budget or $47.5 million in 2023-2024. 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 2023-2024 mid -year General Fund expenditures are projected to be $145.0 million, resulting in a balanced
budget, an operating surplus of $332,570, and a 20% operating reserve of $21.7 million. The City's adopted 2023-
2024 operating and capital budget for all funds was $322 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 2023-
2024 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 adopted City's 2023-2024 budget can be obtained by visiting
the web at https:Hsantaclarita.gov/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 OPEB asset
Long-term receivables
Capital assets:
Non -depreciable capital assets
Depreciable capital assets, net
Intangible capital assets, 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, 2023
Primary Government
Governmental
Business -Type
Activities
Activities
Total
$ 433,855,775
$ 10,796,457
$ 444,652,232
1,205,453
11,042
1,216,495
11669,062
41,280
1,710,342
14,489,994
-
14,489,994
269,324
-
269,324
9,425,431
4,613,999
14,039,430
504,157
21,686
525,843
60,000
-
60,000
461,479,196
15,484,464
476,963,660
635,514
-
635,514
21,364,153
-
21,364,153
2,173,310
-
2,173,310
3,420,420
3,420,420
15,594,887
-
15,594,887
5,003,030
123,020
5,126,050
2,048,067
-
2,048,067
316,027,266
31,021,805
347,049,071
878,494,212
65,670,886
944,165,098
3,434,524
-
3,434,524
1,197,956,002
96,692,691
1,294,648,693
1,248,195,383
96,815,711
1,345,011,094
1,709,674,579
112,300,175
1,821,974,754
29,815,311
1,085,956
30,901,267
8,346,771
205,250
8,552,021
1,247,469
-
1,247,469
39,409,551
1,291,206
40,700,757
See accompanying Notes to the Basic Financial Statements.
18
City of Santa Clarita
Statement of Net Position (Continued)
June 30, 2023
Primary Government
Governmental
Business -Type
Activities
Activities
Total
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
35,438,276
3,473,995
38,912,271
Accrued interest payable
451,801
-
451,801
Unearned revenue
7,785,249
-
7,785,249
Deposits payable
4,360,796
-
4,360,796
Due to the Successor Agency
7,734,479
-
7,734,479
Compensated absences - due within one year
2,741,254
53,926
2,795,180
Claims and judgement - due within one year
1,270,000
-
1,270,000
Long-term liabilities - due within one year
3,958,468
-
3,958,468
Total current liabilities
63,740,323
3,527,921
67,268,244
Noncurrent liabilities:
Compensated absences - due in more than one year
1,976,907
82,730
2,059,637
Claims and judgement - due in more than one year
6,170,596
-
6,170,596
Long-term liabilities - due in more than one year
92,080,098
-
92,080,098
Developer credits
49,835,534
-
49,835,534
Net pension liabilities
37,425,159
1,363,159
38,788,318
Total noncurrent liabilities
187,488,294
1,445,889
188,934,183
Total liabilities
251,228,617
4,973,810
256,202,427
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
1,903,189
69,320
1,972,509
Deferred inflows of resources related to OPEB
21,289,861
523,520
21,813,381
Leases
3,683,048
-
3,683,048
Total deferred inflows of resources
26,876,098
592,840
27,468,938
NET POSITION
Net investment in capital assets
1,124,934,271
96,692,691 1,221,626,962
Restricted:
Landscape maintenance
40,023,389
- 40,023,389
Lighting District
15,758,852
- 15,758,852
Capital improvements
16,683,386
- 16,683,386
Transportation
43,309,855
- 43,309,855
Open space preservation
6,918,845
- 6,918,845
Public safety
1,243,942
- 1,243,942
Public library
7,646,845
- 7,646,845
Air quality improvement
558,416
- 558,416
Stormwater
5,028,007
- 5,028,007
Public education and government
767,529
- 767,529
Public television
97
- 97
Tourism marketing
894,818
- 894,818
Low and moderate income housing
4,187,347
- 4,187,347
Clean safe water
6,557,914
- 6,557,914
Debt service
1,109,477
- 1,109,477
Pensions
2,173,310
- 2,173,310
Other
5,170,111
- 5,170,111
Total restricted
158,032,140
- 158,032,140
Unrestricted (deficit)
188,013,004
11,332,040 199,345,044
Total net position
$ 1,470,979,415
$ 108,024,731 $ 1,579,004,146
See accompanying Notes to the Basic Financial Statements.
19
City of Santa Clarita
Statement of Activities
For the Year Ended June 30, 2023
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Governmental Activities:
General government
$ 49,428,154
$ 41,180,442
$ 2,449,623
$ -
Public safety
33,228,916
2,053,902
527,839
1,718,263
Recreation and community services
20,430,503
7,366,425
35,000
-
Public works
18,720,585
11,412,044
26,257,053
27,352,111
Community development
19,948,687
15,864,222
5,248,825
-
Neighborhood services
23,816,831
9,429,835
574,654
6,795,137
Unallocated infrastructure depreciation
22,077,333
-
-
-
Interest and fiscal charges
3,912,327
-
-
-
Total governmental activities
191,563,336
87,306,870
35,092,994
35,865,511
Business -type Activities:
Transit enterprise
35,506,571
6,499,657
15,173,066
8,107,402
Total business -type activities
35,506,571
6,499,657
15,173,066
8,107,402
Total primary government
$ 227,069,907
$ 93,806,527
$ 50,266,060
$ 43,972,913
See accompanying Notes to the Basic Financial Statements.
20
City of Santa Clarita
Statement of Activities (Continued)
For the Year Ended June 30, 2023
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
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
Net (Expenses) Revenues and
Changes in Net Position
Governmental
Business -Type
Activities
Activities
Total
$ (5,798,089)
$ - $
(5,798,089)
(28,928,912)
-
(28,928,912)
(13,029,078)
-
(13,029,078)
46,300,623
-
46,300,623
1,164,360
-
1,164,360
(7,017,205)
-
(7,017,205)
(22,077,333)
-
(22,077,333)
(3,912,327)
-
(3,912,327)
(33,297,961)
-
(33,297,961)
-
(5,726,446)
(5,726,446)
-
(5,726,446)
(5,726,446)
(33,297,961)
(5,726,446)
(39,024,407)
45,187,496
-
45,187,496
48,507,761
-
48,507,761
10,688,049
-
10,688,049
5,296,490
-
5,296,490
1,307,533
-
1,307,533
213,520
-
213,520
3,407,265
13,527
3,420,792
3,333,538
803,263
4,136,801
-
35,000
35,000
117,941,652
851,790
118,793,442
(8,384,754)
8,384,754
-
76,258,937
3,510,098
79,769,035
1,394,720,478
104,514,633
1,499,235,111
$ 1,470,979,415 $
108,024,731
$ 1,579,004,146
See accompanying Notes to the Basic Financial Statements.
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, 2023
Special Revenue Funds
General
Bridge and
Developer
Public
Fund
Thoroughfare
Fees
Library
ASSETS
Cash and investments
$ 235,094,855
$ 14,403,990
$ 12,401,447
$ 5,331,217
Accounts receivable, net
410,344
-
-
50
Interest receivable
1,000,860
54,270
46,976
20,002
Taxes receivables
13,384,566
-
-
265,393
Loans receivable
_
_
_
_
Leases receivable
3,689,744
-
-
-
Notes to RDA Successor Agency
8,045,445
-
7,549,442
-
Prepaid items
429,190
-
-
11,086
Due from other governments
235,495
-
-
-
Due from other funds
6,532,638
-
-
-
Advance to other funds
5,760,795
-
136,697
-
Deposits with others
60,000
-
-
-
Restricted assets:
Cash and investments
_
_
_
_
Cash and investments with fiscal agents
21,340,965
-
-
-
Cash and investments with PARS
2,173,310
-
-
-
Total assets
$ 298,158,207
$ 14A58.260
$ 20,134,562
$ 5,627,748
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 11,607,418 $
37,874 $
8,029,127 $
220,589
Deposit payable
4,360,796
-
-
-
Due to other funds
_
Due to the Successor Agency
7,700,000
-
-
-
Unearned revenue
947,823
368,724
-
-
Advance from other funds
-
5,897,492
-
-
Total liabilities
24,616,037
6,304,090
8,029,127
220,589
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
2,096,972
-
-
-
Leases
3,683,048
-
-
-
Total deferred inflows of resources
5,780,020
-
-
-
Fund Balances:
Nonspendable
14,295,430
-
-
11,086
Restricted
23,514,275
8,154,170
12,064,299
5,396,073
Committed
-
_
1,584
_
Assigned
166,255,745
-
39,552
_
Unassigned (deficit)
63,696,700
-
-
-
Total fund balances
267,762,150
8,154,170
12,105,435
5,407,159
Total liabilities, deferred inflows of
resources, and fund balances
$ 298,158,207 $
14,458,260 $
20,134,562 $
5,627,748
(Continued)
See accompanying Notes to the Basic Financial Statements.
26
City of Santa Clarita
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
Special Revenue Funds
Landscape
Nonmajor
Total
Maintenance
American
Governmental
Governmental
District #1
Rescue Plan
Funds
Funds
ASSETS
Cash and investments
$ 25,383,097
$ 10,429,409
$ 112,975,956
$ 416,019,971
Accounts receivable, net
6,925
-
786,781
1,204,100
Interest receivable
95,878
-
384,731
1,602,717
Taxes receivables
180,637
-
659,398
14,489,994
Loans receivable
-
-
2,048,067
2,048,067
Leases receivable
-
-
3,689,744
Notes to RDA Successor Agency
-
-
-
15,594,887
Prepaid items
-
2,596
61,285
504,157
Due from other governments
-
-
9,189,936
9,425,431
Due from other funds
-
-
-
6,532,638
Advance to other funds
-
-
-
5,897,492
Deposits with others
-
-
-
60,000
Restricted assets:
Cash and investments
-
-
635,514
635,514
Cash and investments with fiscal agents
-
-
23,188
21,364,153
Cash and investments with PARS
-
-
-
2,173,310
Total assets
$ 25,666,537
$ 10,432.005
$ 126,764,856
$ 501,242,175
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 1,148,064 $
3,963,303
$ 10,343,197
$ 35,349,572
Deposit payable
-
-
-
4,360,796
Due to other funds
-
-
6,532,638
6,532,638
Due to the Successor Agency
-
-
34,479
7,734,479
Unearned revenue
-
6,468,702
-
7,785,249
Advance from other funds
-
-
-
5,897,492
Total liabilities
1,148,064
10,432,005
16,910,314
67,660,226
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
-
-
6,530,707
8,627,679
Leases
-
-
3,683,048
Total deferred inflows of resources
-
-
6,530,707
12,310,727
Fund Balances:
Nonspendable
-
2,596
61,285
14,370,397
Restricted
24,518,473
-
105,136,535
178,783,825
Committed
-
-
-
1,584
Assigned
-
-
3,183,322
169,478,619
Unassigned (deficit)
-
(2,596)
(5,057,307)
58,636,797
Total fund balances
24,518,473
-
103,323,835
421,271,222
Total liabilities, deferred inflows of
resources, and fund balances
$ 25,666,537 $
10,432,005
$ 126,764,856
$ 501,242,175
(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, 2023
Total Fund Balances - Total Governmental Funds $ 421,271,222
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 $ 316,027,266
Depreciable assets, net of $1,703,619 reported in Internal Service Funds 876,790,593
Intangible assets 3,434,524 1,196,252,383
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. 8,627,679
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 $113,488 reported in Internal Service Funds 29,701,823
Net pension liabilities, net of $142,459 reported in Internal Service Funds (37,282,700)
Deferred inflows of resources related to pensions, net of $(7,244) reported in Internal Service Fund (1,895,945)
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 $25,656 reported in Internal Service Funds 8,321,115
Net OPEB asset net of $15,376 reported in Internal Service Funds 4,987,654
Deferred inflows of resources related to OPEB, net of $(65,439) reported in Internal Service Funds (21,224,422)
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. 12,000,188
Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the
governmental funds. (451,801)
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 1,247,469
Long-term debt (92,145,131)
Unamortized bond premium (3,893,435)
Developers credits (49,835,534)
Compensated absences, net of $(17,011) reported in Internal Service Funds (4,701,150)
Net position of governmental activities $ 1,470,979,415
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, 2023
Special Revenue Funds
General
Bridge and
Developer
Public
Fund
Thoroughfare
Fees
Library
REVENUES:
Taxes
$ 110,859,494
$ -
$ -
$ 9,439,660
Licenses, and permits
13,073,140
-
-
-
Special assessments
-
-
-
-
Intergovernmental
2,320,990
-
-
-
Charges for services
12,077,252
-
-
354,628
Investment income
3,236,512
733,410
124,201
276
Fines and forfeitures
1,275,178
-
-
-
Developer fees
-
729,603
2,015,872
-
Other revenues
1,397,011
375,044
199,597
180,548
Total revenues
144,239,577
1,838,057
2,339,670
9,975,112
EXPENDITURES:
Current:
General government
16,802,847
-
- 7,763,380
Public safety
30,145,058
-
1,583,348 -
Recreation and community services
15,941,571
-
- -
Public works
9,422,013
156,916
- -
Community development
17,403,596
-
- -
Neighborhood services
2,798,122
-
- -
Capital outlay
11,673,103
887,335
79,869 228,020
Debt service:
Principal retirement
946,649
-
- 110,669
Interest and fiscal charges
8,260
659,465
- -
Cost of issuance
-
-
- -
Total expenditures
105,141,219
1,703,716
1,663,217 8,102,069
REVENUES OVER (UNDER) EXPENDITURES 39,098,358 134,341 676,453 1,873,043
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - -
Issuance premium - - - -
Transfers in 21,282,272 - - 25,933
Transfers out (21,368,298) - (58,176) -
Total other financing sources (uses) (86,026) - (58,176) 25,933
NET CHANGE IN FUND BALANCES 39,012,332 134,341 618,277 1,898,976
FUND BALANCES:
Beginning of year 228,749,818 8,019,829 11,487,158 3,508,183
End of year $ 267,762,150 $ 8,154,170 $ 12,105,435 $ 5,407,159
(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, 2023
Special Revenue Funds
Landscape
Nonmajor
Total
Maintenance
American
Governmental
Governmental
District#1
Rescue Plan
Funds
Funds
REVENUES:
Taxes
$ 285,490
$ -
$ 3,661,176
$ 124,245,820
Licenses, and permits
-
-
-
13,073,140
Special assessments
15,362,717
-
25,470,548
40,833,265
Intergovernmental
-
8,784,745
43,987,616
55,093,351
Charges for services
-
-
1,035,366
13,467,246
Investment income
288,486
-
1,475,848
5,858,733
Fines and forfeitures
-
-
1,009,543
2,284,721
Developer fees
-
-
303,290
3,048,765
Other revenues
-
-
444,735
2,596,935
Total revenues
15,936,693
8,784,745
77,388,122
260,501,976
EXPENDITURES:
Current:
General government
13,613,164
219,685
9,180,434
47,579,510
Public safety
-
-
505,867
32,234,273
Recreation and community services
-
-
-
15,941,571
Public works
-
-
7,175,161
16,754,090
Community development
-
10,077
2,052,744
19,466,417
Neighborhood services
174,024
26,688
21,378,647
24,377,481
Capital outlay
779,985
8,528,295
40,032,184
62,208,791
Debt service:
Principal retirement
-
-
2,622,832
3,680,150
Interest and fiscal charges
-
-
2,929,075
3,596,800
Cost of issuance
-
-
354,697
354,697
Total expenditures
14,567,173
8,784,745
86,231,641
226,193,780
REVENUES OVER (UNDER) EXPENDITURES 1,369,520 - (8,843,519) 34,308,196
OTHER FINANCING SOURCES (USES):
Issuance of debt
- - 18,815,000
18,815,000
Issuance premium
- - 716,027
716,027
Transfers in
10,000 - 23,512,913
44,831,118
Transfers out
(57,000) - (31,732,398)
(53,215,872)
Total other financing sources (uses)
(47,000) - 11,311,542
11,146,273
NET CHANGE IN FUND BALANCES 1,322,520 - 2,468,023 45,454,469
FUND BALANCES:
Beginning of year 23,195,953 - 100,855,812 375,816,753
End of year $ 24,518,473 $ - $ 103,323,835 $ 421,271,222
(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, 2023
Net change in fund balances - total governmental funds: $ 45,454,469
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 $437,713 reported in Internal Service Funds $ 60,537,692
Capital contribution from Tesoro del Valle Annexation 11,515,258
Depreciation and amortization expense, net of $362,600 reported in Internal Service Funds (31,397,848) 40,655,102
The net effect of disposal of capital assets
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.
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 $16,159 reported in internal service funds
Pension expense, net of pension contribution made after measurement date
OPEB expense, net of OPEB contribution made after measurement date
Accrued interest for long-term debt
Principal repayment of long-term debt
Bond premium and deferred charges amortization
Issuance of long-term debt
Issuance premium
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.
Change in net position of governmental activities
(33,886)
4,022,141
(662,952)
192,372
1,219,149
(59,227)
3,680,150
98,397
(18,815,000)
(716,027)
1,224,249
$ 76,258,937
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, 2023
ASSETS
Current assets:
Cash and investments
Accounts receivable, net
Interest receivable
Due from other governments
Prepaid items
Total current assets
Noncurrent assets:
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
Net pension liabilities
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
$ 10,796,457
11,042
41,280
4,613,999
21,686
15,484,464
123,020
31,021,805
65,670,886
96,692,691
96,815,711
112,300,175
1,085,956
205,250
1,291,206
Internal
Service Funds
$ 17,835,804
1,353
66,345
17,903,502
15,376
1,703,619
1,703,619
1,718,995
19,622,497
113,488
25,656
139,144
3,473,995 88,704
53,926 1,168
- 1,270,000
3,527,921
82,730
1,363,159
1,445,889
4,973,810
69,320
523,520
592,840
1,359,872
15,843
6,170,596
142,459
6,328,898
7,688,770
7,244
65,439
72,683
96,692,691 1,703,619
11,3 32, 040 10,296, 569
$ 108,024,731 $ 12,000,188
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, 2023
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
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
$ 6,499,657 $
5,837,950
803,263
60,751
7,302,920
5,898,701
3,302,578
324,831
21,304,588
-
4,815,335
4,154,673
6,084,070
362,600
35,506,571
4,842,104
(28,203,651) 1,056,597
15,173,066 -
13,527 167,652
35,000 -
15,221,593 167,652
8,538,444
(153,690)
8,107,402
16,492,156
3,510,098 1,224,249
104, 514,633 10,775,939
$ 108,024,731 $ 12,000,188
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, 2023
Business -type
Governmental
Activities
Activities
Transit
Internal
Enterprise Fund
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users
$ 7,368,173
$ 5,897,348
Cash paid to suppliers for goods and services
(29,560,366)
(718,722)
Cash paid to employees for services
(1,466,025)
(344,414)
Cash paid to claims
-
(992,149)
Net cash provided by (used in) operating activities
(23,658,218)
3,842,063
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers in
8,538,444
-
Cash transfers out
(153,690)
-
Federal and state funding received
17,783,728
-
Net cash provided by noncapital fmancing activities
26,168,482
-
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital grants and contributions
8,107,402
-
Acquisition of capital assets
(7,179,440)
(437,713)
Proceed from sale of capital assets
35,000
Net cash provided by (used in) capital and related fmancing activities
962,962
(437,713)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income received (loss)
(13,979)
129,084
Net cash provided by (used in) investing activities
(13,979)
129,084
Net increase in cash and cash equivalents
3,459,247
3,533,434
CASH AND CASH EQUIVALENTS:
Beginning of year
7,337,210
14,302,370
End of year
$ 10,796,457
$ 17,835,804
NET INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss)
$ (28,203,651)
1,056,597
Adjustments to reconcile operating income (loss) to net cash
provided by (used in) operating activities:
Depreciation
6,084,070
362,600
Change in assets and liabilities:
(Increase) decrease in accounts receivable
65,253
(1,353)
(Increase) decrease in prepaid items
(18,152)
17,564
(Increase) decrease in net pension asset
1,378,374
(9,163)
(Increase) decrease in net OPEB asset
(73,308)
144,049
(Increase) decrease in deferred outflows of resources related to pensions
(671,179)
(70,142)
(Increase) decrease in deferred outflows of resources related to OPEB
50,456
6,307
Increase (decrease) in accounts payable and accrued liabilities
(1,542,522)
(367,928)
Increase (decrease) in compensated absences
(6,109)
(16,159)
Increase (decrease) in claims and judgements
-
2,795,236
Increase (decrease) in deferred inflows of resources related to pensions
(714,229)
(74,642)
Increase (decrease) in deferred inflows of resources related to OPEB
(7,221)
(903)
Total adjustment
4,545,433
2,785,466
Net cash provided by (used in) operating activities
$ (23,658,218)
$ 3,842,063
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, 2023
ASSETS
Cash and investments
Interest receivable
Contributions receivable
Due from the City
Restricted:
Cash and investments
Cash and investments held with PARS:
Cash and cash equivalents
U.S. Treasury
U.S. government sponsored enterprise securities
Corporate notes
Foreign notes
Municipal bonds
Domestic common stocks
Foreign stocks
Mutual funds - equity
Mutual funds - fixed income
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
Restricted for:
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
("OPEB") Trust Fund
Agency
Custodial
Funds
$ - 801,020 $ 2,097,995
119,362 2,998 7,846
- - 595
- 7,734,479 -
-
29,220
-
2,316,397
-
-
3,661,500
-
-
4,730,031
3,896,547
-
-
97,753
-
-
488,950
-
-
5,557,429
-
-
116,880
-
-
21,157,980
-
-
4,586,969
-
-
-
1,833,395
2,872,005
46,729,798
10,401,112
4,978,441
-
1,902,674
-
-
1,902,674
-
-
348
2,880
-
302,116
-
-
1,018,660
-
-
44,902,133
-
-
46,223,257
2,880
46,729,798
-
-
-
(33,919,471)
4,975,561
$ 46,729,798 $
(33,919,471) $
4,975,561
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, 2023
Pension (and Other
Employee Benefit)
Private -Purpose
Trust Fund
Trust Fund
Other Post
Redevelopment
Employment Benefits
Successor
Custodial
(OPEB) Trust Fund
Agency
Funds
ADDITIONS:
Redevelopment property tax trust fund
$ -
$ 2,963,051
$ -
Special assessment from property owners
-
-
2,398,482
Employer contributions
253,000
-
-
Net investment income (loss)
3,955,861
25,024
(2,448)
Total additions
4,208,861
2,988,075
2,396,034
DEDUCTIONS:
Benefit payments to plan participants
1,455,278
-
-
Contractual services
86,060
5,253
48,380
Payments for debt services
-
1,557,000
2,229,283
Payments to other governments
-
-
30,162
Total deductions
1,541,338
1,562,253
2,307,825
Change in net position
2,667,523
1,425,822
88,209
NET POSITION:
Beginning of year
44,062,275
(35,345,293)
4,887,352
End of year
$ 46,729,798
$ (33,919,471)
$ 4,975,561
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, 2023
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.............................................................................................52
D.
Cash and Investments with Fiscal Agents............................................................................................52
E.
Fair Value Measurement......................................................................................................................52
F.
Interfund Transactions.........................................................................................................................53
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.
Subscription Liabilities........................................................................................................................56
P.
Compensated Absences........................................................................................................................57
Q.
Claims and Judgements........................................................................................................................57
R.
Pensions...............................................................................................................................................57
S.
Other Postemployment Benefits (" OPEB").........................................................................................57
T.
Property Taxes and Special Assessments............................................................................................58
U.
Net Position and Fund Balances..........................................................................................................58
V.
Use of Estimates...................................................................................................................................60
W.
Implementation of New GASB Pronouncement..................................................................................60
Note2 — Cash and Investments............................................................................................................................60
A.
Deposits................................................................................................................................................61
B.
Investments..........................................................................................................................................61
C.
Investments Authorized by Debt Agreements.....................................................................................62
D.
Risk Disclosures...................................................................................................................................63
E.
Fair Value Measurement......................................................................................................................65
F.
Local Agency Investment Fund (" LAIF")...........................................................................................65
G.
Loas Angeles County Pooled Investment Fund...................................................................................66
H.
California Asset Management Program...............................................................................................66
Note3 — Accounts Receivable...............................................................................................................................66
Note4 — Loans Receivable....................................................................................................................................66
Note5 — Due from Other Government................................................................................................................66
Note 6 — Notes to RDA Successor Agency...........................................................................................................67
Note7 — Lease Receivables...................................................................................................................................67
Note8 — Interfund Transactions..........................................................................................................................67
A. Due From/To Other Funds...................................................................................................................67
B. Advances To/From Other Funds..........................................................................................................68
C. Transfers In/Out...................................................................................................................................69
Note9 — Capital Assets..........................................................................................................................................70
A. Governmental Activities......................................................................................................................70
B. Business -type activities........................................................................................................................71
45
City of Santa Clarita
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note10 — Deposit Payable.....................................................................................................................................72
Note11— Long -Term Liabilities..........................................................................................................................72
A. Governmental Activities......................................................................................................................72
B. Business -types Activities....................................................................................................................79
C. Fiduciary Funds...................................................................................................................................80
D. Non -City Obligation............................................................................................................................82
Note12 — Risk Management.................................................................................................................................82
A. Special Districts Risk Management Authority ("SDRMA")...............................................................82
B. California Joint Powers Insurance Authority ("CJPIA").....................................................................83
C. Claims and Judgments Payable............................................................................................................84
Note13 — Pension Plan..........................................................................................................................................85
A. General Information about the Pension Plan.......................................................................................85
B. Net Pension Liability...........................................................................................................................86
C. Changes in the Net Pension Liability...................................................................................................88
D. Pension Expense, Deferred Outflows and Inflows of Resources Related to Pensions ........................89
Note 14 —
Other Postemployment Benefits ("OPEB").......................................................................................90
A.
General Information about the OPEB Plan..........................................................................................90
B.
Net OPEB Liability..............................................................................................................................91
C.
Changes in the Net OPEB Liability.....................................................................................................92
D.
Cash and Investment Held in Trust......................................................................................................94
E.
Concentrations of Credit Risk..............................................................................................................94
Note 15 —
Deferred Compensation Plan/Defined Contribution Plan................................................................95
Note16 —
Developer Credits.................................................................................................................................95
Note 17 —
Net Investment in Capital Assets.........................................................................................................95
Note 18 —
Classification of Fund Balances...........................................................................................................96
Note 19 —
Santa Clarita Watershed Recreation and Conservancy Authority..................................................97
Note 20 —
Commitments and Contingencies........................................................................................................97
A.
Project Commitments...........................................................................................................................97
B.
Encumbrances......................................................................................................................................97
C.
Contingencies.......................................................................................................................................98
Note 21—
Other Required Disclosure..................................................................................................................99
A.
Expenditures in Excess of Appropriation............................................................................................99
B.
Deficit Net Positions and Fund Balances.............................................................................................99
Note 22 —
Restatement of Beginning Net Position and Fund Balance...............................................................99
46
City of Santa Clarita
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
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 Financing Authority - The Authority was established in July 1991 as a joint powers authority
between the City and the former redevelopment agency for the purpose of providing financing and funding of public
capital improvements and the acquisition of property. On May 10, 2016, the City Council adopted Resolution 16-
15 that removed the Successor Agency from the agreement and substituted the Santa Clarita Parking Authority.
The Authority 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, 2023
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, 2023
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, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
➢ The Public LibrM 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 91 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 Al 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, 2023
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 SuccessorAgency 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 in the amount of $9,937,976 and other capital assets net of accumulated
depreciation in the amount of $56,442. 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, 2023
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.
➢ 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.
52
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
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.
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 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.
53
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
L Lease Receivable (Continued)
• 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 $100,000 threshold to recognize right -to -use assets, including lease assets or subscription -
based information technology arrangement ("SBITA") assets ("subscription assets"), in the government -wide
financial statements and proprietary fund financial statements.
Ruoff -Use Lease Assets
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, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
J. Capital Assets (Continued)
Right -of -Use Subscription Assets
Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities ("subscription
liabilities") and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the
subscription term, less any incentives received from the SBITA vendor at or before the commencement of the
subscription term along with subscription implementation costs. Subscription assets are amortized over the shorter
of the subscription term or the useful life of the underlying information technology assets.
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 ofResources represent a consumption of net assets that apply to future periods.
De erred Inflows ofResources represent an acquisition of net assets 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.
55
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
N. Lease Liabilities (Continued)
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.
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 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. Subscription Liabilities
The City recognizes subscription liabilities with an initial, individual value of $100,000 or more with a subscription
term greater than one year in the government -wide and proprietary fund financial statements. Variable payments
based on future performance of the City, usage of the underlying information technology assets, or number of user
seats are not included in the measurement of the subscription liability.
At the commencement of a subscription, the City initially measures the subscription liability at the present value of
payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by
the principal portion of subscription payments made.
Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount
rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3)
subscription payments.
• The City uses incremental borrowing rate provided by the financial institution at July 1, 2022 for existing
subscription or the current rate at the time a new subscription is executed.
• The subscription term includes the noncancellable period of the SBITA. Subscription payments included
in the measurement of the subscription liability are composed of fixed payments.
The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure
any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of
the subscription liability.
56
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
P. 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).
Q. 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.
R. 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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.
S. 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.
57
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
S. Other Postemployment Benefits ("OPEB') (Continued)
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, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
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.
T. 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.
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.
U. 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.
58
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
U. Net Position and Fund Balances (Continued)
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.
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.
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.
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, 2023, the balance totaled $21,260,000, which is included in the unassigned fund
balance in the General Fund.
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, and then unassigned.
59
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1— Summary of Significant Accounting Policies (Continued)
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 May 2020, GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements (GASB
Statement No. 96), to better meet the information needs of financial statement users by (a) establishing uniform
accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial
statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability,
relevance, and consistency of information about SBITAs. Under this Statement, a government is required to
recognize a subscription liability and an intangible right -to -use subscription asset. The effective date of GASB
Statement No. 96 is for fiscal years beginning after June 15, 2022. Implementation of this Statement resulted in
restatement of beginning balance of capital assets (Note 9) and long-term debt liabilities (Note 11) at July 1, 2022.
Note 2 — Cash and Investments
The City had the following cash and investments at June 30, 2023:
Cash and investments
Restricted cash and investments
Total cash and investments
Government -Wide
Statement of Net Position
Governmental Business -Type
Activities Activities
$ 433,855,775 $ 10,796,457
24,172,977 -
Fiduciary
Fund
Statement of
Net Position Total
$ 2,899,015 $ 447,551,247
51,345,056 75,518,033
$ 458,028,752 $ 10,796,457 $ 54,244,071 $ 523,069,280
The City's cash and investments at June 30, 2023, in more detail:
Deposits with financial institutions
$ 31,785,216
Cash on hand
4,514
Total cash
31,789,730
Investments
415,807,431
Investments with fiscal agent
26,688,375
Investment with PARS
48,783,744
Total investments
491,279,550
Total cash and investments
$ 523,069,280
60
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 — Cash and Investments (Continued)
A. Deposits
The carrying amounts of the City's demand deposits were $31,785,216 at June 30, 2023. Bank balances at that date
were $31,407,071 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.
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:
61
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 — Cash and Investments (Continued)
B. Investments (Continued)
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
Allowed *
Maximum
Investments in
One Issuer **
City Bonds
5 years
None
5%
U.S. Treasuries
5 years
None
None
State Bonds
5 years
None
5%
Municipal Bonds
5 years
None
5%
U.S. Governmental -Sponsored Enterprise securities
5 years
None
None
Supemationals/unsubordinated Obligations
5 years
30%
10%
Banker's Acceptances
180 days
40%
30%
Commercial Paper
270 days
40%
5%
Negotiable Certificates of Deposit
5 years
30%
5%
Repurchase Agreements
1 year
None
None
Corporate Notes
5years
30%
5%
Money Market Funds
5 years
20%
10%
Mortgage Pass -Through Securities
5 years
20%
5%
Asset Backed/Mortgage Backed Securities
5 years
20%
5%
State of California Local Agency Investment Fund (LAIF)
N/A
Maximum permitted
None
by Law
Los Angeles County Pooled Investment Fund (LACPIF)
N/A
None
None
Local Government Investment Pool (LGIP)
N/A
None
None
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.
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
62
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 — Cash and Investments (Continued)
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, 2023, 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 (LAIF)
California Asset Management Program
(CAMP)
Los Angeles County Pooled Investment
Fund (LACPIF)
Money Market Funds
United States Government Sponsored
Enterprise Securities
US Treasuries Securities
Collateralized Mortgage Obligation
Asset Backed Securities
Corporate Notes
Negotiable Certificates of Deposit
Municip a1 Bonds
Sup ranational Obligations
Investment with PARS
Restricted with Fiscal Agent:
Money Market Funds 24,921,979 - - 24,921,979
US Treasuries Securities 1,766,396 - - 1,766,396
$ 166,566,167 $ 92,945,744 $ 231,767,639 $ 491,279,550
Total
$ 10,211,508 $ - $ - $ 10,211,508
53,916,924 - - 53,916,924
2,464,604 - - 2,464,604
1,206,001 - - 1,206,001
4,039,574
21,967,772
10,174,756
36,182,102
21,212,688
51,000,736
150,417,178
222,630,602
357,559
-
2,391,036
2,748,595
70,083
197,416
1,046,713
1,314,212
6,727,995
12,450,227
54,409,659
73,587,881
-
2,729,318
2,729,318
2,354,380
1,562,853
988,653
4,905,886
1,333,018
2,576,780
-
3,909,798
35,983,458
460,642
12,339,644
48,783,744
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, 2023 for each investment type:
63
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 — Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Fair Value
Minimum
Not Required
at
Legal
to be
Investment Type
June 30, 2023
Rating
AAA
Others
Not Rated
Rated
Local Agency Investment Fund (LAIF)
$ 10,211,508
N/A
$
$
$
$ 10,211,508
California Asset Management Program
(CAMP)
53,916,924
N/A
53,916,924
Los Angeles County Pooled Investment
Fund (LACPIF)
2,464,604
N/A
2,464,604
Money Market Funds
1,206,001
AAA
1206,001
-
United States Government Sponsored
Enterprise Securities
36,182,102
N/A
36,182,102
US Treasuries Securities
222,630,602
N/A
222,630,602
Collateralized Mortgage Obligation
2,748,595
AA
2,748,595
Asset Backed Securities
1,314,212
AA-
1,314,212
-
-
Corporate Notes
73,587,881
A-
4,524,173
69,059,708
4,000
Negotiable Certificates of Deposit
2,729,318
N/A
-
2,729,318
-
MunicipalBonds
4,905,886
A
1,689,730
3,216,156
Supranational Obligations
3,909,798
AA-
3,909,798
-
-
-
Investment with PARS
48,783,744
N/A
9,339,245
3,434,448
101,089
35,908,962
Restricted with Fiscal Agent:
-
Money Market Funds
24,921,979
N/A
-
-
-
24,921,979
US Treasuries Securities
1,766,396
N/A
1,766,396
-
-
-
Total
$ 491,279,550
$ 285,310,854
$ 78,439,630
$ 105,089
$127,423,977
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, 2023, this investment is recorded at $4,000.
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
$ 15,878,555 $ 53,181,153 $ - $ 69,059,708
2,729,318 - - 2,729,318
3,216,156 - - 3,216,156
636,212 1,123,892 1,674,344 3,434,448
$ 22,460,241 $ 54,305,045 $ 1,674,344 $ 78,439,630
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, 2023, 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 $ 27,951,736 7%
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, 2023, none of
the City's deposits or investments were exposed to custodial credit risk.
64
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 — Cash and Investments (Continued)
E. Fair Value Measurement
At June 30, 2023, 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, 2023:
Quoted Prices in Active
Market for Identical
Investment Type
Assets (Level 1)
Local Agency Investment Fund (LAIF)
$ -
California Asset Management Program
(CAMP)
-
Los Angeles County Pooled Investment
Fund (LACPIF)
-
Money Market Funds
-
United States Government Sponsored
Enterprise Securities
-
US Treasury Securities
222,630,602
Collateralized Mortgage obligation
-
Asset Backed Securities
-
Corp orate Notes
-
Negotiable Certificates of Deposit
-
Municipal Bonds
-
Sup ernational Obligations
-
Investment with PARS
-
Restricted with Fiscal Agent:
Money Market Funds
-
US Treasury Securities
1,766,396
Total
$ 224,396,998
Measurement Input
Significant
Other Observable
Inputs (Level 2) Uncategorized Total
$ - $ 10,211,508 $ 10,211,508
53,916,924
53,916,924
2,464,604
2,464,604
1,206,001
1,206,001
36,182,102
- 36,182,102
-
- 222,630,602
2,748,595
- 2,748,595
1,314,212
- 1,314,212
73,587,881
- 73,587,881
2,729,318
- 2,729,318
4,905,886
- 4,905,886
3,909,798
- 3,909,798
48,783,744
- 48,783,744
24,921,979 24,921,979
- - 1,766,396
$ 174,161,536 $ 92,721,016 $ 491,279,550
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 uncategorized.
Level 2 investments are based on institutional bond quotes or matrix pricing.
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. As of June 30, 2023, the City had $10,211,508 invested in
LAIF. 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.
65
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 — Cash and Investments (Continued)
G. Los Angeles County Pooled Investment Fund ("LACPIF')
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, 2023, the City had $2,464,604 invested in the LACPIF.
H. California Asset Management Program ("CAMP')
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, 2023, the City had $53,916,924 invested in the CAMP.
Note 3 — Accounts Receivables
Accounts receivable as of June 30, 2023, including allowances for uncollectible accounts, is as follows:
Gross receivables
Less: Allowance of uncollectibles
Account receivables, net
Note 4 — Loans Receivable
Special Revenue Funds
Nonmajor
Transit
General
Public Landscape
Governmental
Enterprise
Fund
Library Maintenance
Funds
Fund
$ 627,564
$ 50 $ 6,925
$ 857,669
$ 29,252
(217,220)
- -
(70,888)
(18,210)
$ 410,344 $ 50 $ 6,925 $ 786,781 $ 11,042
The loans receivable balance in the governmental funds totaled $2,048,067 at June 30, 2023. The balance is related to
deferred -payment rehabilitation loans to qualified homeowners in connection with HOME rehabilitation programs.
Note 5 — Due from the Successor Agency
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, 2023, $7,734,479 of these unallowable transfers remains due
from the City to the Successor Agency Private Purpose Trust Fund.
66
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023,
the loan amounts reported in the General Fund and Developer Fees Special Revenue Fund was $4,441,344 and
$5,319,887, respectively. In addition, the unpaid accrued interests of these notes are $3,604,101 and $2,229,555,
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, 2023, the City recognized $271,816 in lease revenue and $16,092
in lease interest revenue for General Fund. The outstanding lease receivable is in the amount of $3,689,744 for General
Fund.
The future receipts for these leases, including interest, are as follows:
Year Ending
June 30, Principal
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2042
Total
Note 8 — Interfund Transactions
A. Due From/To Other Funds
$ 269,324
270,386
271,452
272,524
273,600
1,128,630
903,008
300,820
Interest
$ 15,035
13,973
12,907
11,836
10,759
38,799
15,955
2,215
Total
$ 284,359
284,359
284,359
284,360
284,359
1,167,429
918,963
303,035
$ 3,689,744 $ 121,479 $ 3,811,223
At June 30, 2023, the City had the following due from/to other funds:
Due from Other fund
Due to Other Funds: General Fund
Nonmajor Governmental Funds $ 6,532,638
The above amounts resulted from temporary reclassifications made at June 30, 2023 to cover cash shortfalls.
67
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 — Interfund Transactions (Continued)
B. Advances To/From Other Funds
At June 30, 2023, the City had the following advances:
Advances to Other Funds
Advances from Other Funds General Fund Developer Fees Total
Bridge and Thoroughfare $ 5,760,795 $ 136,697 $ 5,897,492
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, 2023, the amount of the advance outstanding is $624,438.
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, 2023, the amount of the
advance outstanding is $1,094,767.
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, 2023, the amount of the advance outstanding is
$633,344.
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 S 1039). 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, 2023, the amount of the advance outstanding is $1,243,890.
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, 2023, the amount of the advance outstanding is $2,164,356.
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, 2023, the amount of the advance outstanding is $136,697.
68
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 — Interfund Transactions (Continued)
C. Transfers In/Out
During the year ended June 30, 2023, the City had the following transfers in/out:
Transfers out
General Fund $
Developer Fee Fund
Landscape Maintenance District #1
Nonmajor Governmental Funds
Transit Enterprise Fund
Transfers in
Enterprise
Governmental Funds Fund
Public Landscape Nonmajor Transit
General Library Maintenance Governmental Enterprise
Fund Fund District 91 Funds Fund
$ - $ 10,000 $ 21,358,298 $
58,176 -
40,000 -
21,034,096 25,933
150,000 -
- 17,000
2,133,925
3,690
8,538,444
Total
$ 21,368,298
58,176
57,000
31,732,398
153,690
Total $ 21,282,272 $ 25,933 $ 10,000 $ 23,512,913 $ 8,538,444 $ 53,369,562
The General Fund made transfers of $21,358,298 to the nonmajor governmental funds mainly for the following:
• Areawide Special Revenue Fund for $12,823,503 to provide for urban forestry and parks and parks facilities
maintenance
• General Capital Projects funds for capital improvement projects for $4,461,165
• 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), 2020 Lease Revenue Bonds, Series A-T (Recreational Facility)
and 2022 Lease Revenue Bonds, Series A and Series B (Energy Efficiency), in the amount of $3,814,385.
The Developer Fees Special Revenue Fund made transfers to the General Fund for administrative costs for $58,176.
The nonmajor governmental funds (Public Financing Authority Debt Service Fund) transferred $19,163,579 to the
General Fund to provide funding for the energy efficiency project with the bond proceeds.
The nonmajor governmental funds (Gas Tax, DBAA, and Areawide Special Revenue Funds) made transfers to the
General Fund for the pension unfunded accrued liability contribution in the amount of $634,130.
The nonmajor governmental funds (Traffic Safety Special Revenue Fund) transferred $532,693 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 $1,663,768.
The nonmajor governmental funds (Proposition A, Proposition C and Federal Grants Special Revenue Funds)
transferred $8,538,444 to Transit Enterprise Funds to fund the transit operation.
69
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023 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
Intangible assets, being amortized:
Right -to -use leased building
Right -to -use leased equipment
Right -to -use leased infrastructure
Right -to -use subscription assets
Total intangible assets,
being amortized
Less accumulated amortization for:
Right -to -use leased building
Right -to -use leased equipment
Right -to -use leased infrastructure
Right -to -use subscription assets
Total accumulated amortization
Total intangible assets,
being amortized, net
Governmental activities
capital assets, net
Balance
July 1, 2022 Balance
(As Restated) Transfers Additions Deletions June 30, 2023
$ 258,886,797 $ - $ 1,675,883 $ - $ 260,562,680
33,825,759 (11,012,018) 32,651,968 (1,123) 55,464,586
292,712,556 (11,012,018) 34,327,851 (1,123) 316,027,266
76,014,105
4,827,367
2,767,279
- 83,608,751
207,935,164
896,597
2,206,083
- 211,037,844
15,827,270
-
1,516,899
(954,743) 16,389,426
1,075,730,380
5,288,054
31,672,551
- 1,112,690,985
1,375,506,919
11,012,018
38,162,812
(954,743) 1,423,727,006
(28,589,760)
- (3,119,519)
- (31,709,279)
(30,756,810)
- (4,376,474)
- (35,133,284)
(11,146,641)
- (1,137,801)
921,980 (11,362,462)
(444,950,436)
- (22,077,333)
- (467,027,769)
(515,443,647)
- (30,711,127)
921,980 (545,232,794)
860,063,272 11,012,018 7,451,685 (32,763) 878,494,212
580,966 -
- - 580,966
346,668 -
- - 346,668
275,111 -
- - 275,111
3,614,088 -
- - 3,614,088
4,816,833 -
- - 4,816,833
(148,125)
- (68,969)
- (217,094)
(115,894)
- (115,895)
- (231,789)
(68,969)
- (148,125)
- (217,094)
-
- (716,332)
- (716,332)
(332,988)
- (1,049,321)
- (1,382,309)
4,483,845 - (1,049,321) 3,434,524
$ 1,157,259,673 $ - $ 40,730,215 $ (33,886) $ 1,197,956,002
70
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 — Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation and amortization expense was charged to functions of the governmental activities for the year ended
June 30, 2023 as follows:
General government
$ 2,104,388
Public safety
995,186
Recreation and community service
4,746,362
Neighborhood services
820,975
Public works
642,179
Community development
11,425
Internal service funds depreciation
362,600
Allocated depreciation
9,683,115
Unallocated infrastructure depreciation
22,077,333
Total depreciation expense - governmental activities
$ 31,760,448
B. Business -Type Activities
A summary of changes in the capital assets for the business -type activities for the year ended June 30, 2023 is as
follows:
Balance
Balance
July 1, 2022 Transfers Additions Deletions
June 30, 2023
Capital assets, not being depreciated:
Land
$ 15,087,880 $ - $ - $ -
$ 15,087,880
Construction in progress
14,121,301 (1,080,511) 2,893,135 -
15,933,925
Total capital assets,
not being depreciated
29,209,181 (1,080,511) 2,893,135 -
31,021,805
Capital assets, being depreciated:
Site improvements
12,941,276
Building improvements
45,601,926
Equipment
68,798,721
Total capital assets, being depreciated
127,341,923
Less accumulated depreciation for:
Site improvements
(6,104,695)
Building imp rovement s
(16,446, 532)
Equipment
(38,402,556)
Total accumulated depreciation
(60,953,783)
Total capital assets,
being depreciated, net
66,388,140
- - - 12,941,276
1,080,511 - - 46,682,437
- 4,286,305 (3,991,323) 69,093,703
1,080,511 4,286,305 (3,991,323) 128,717,416
- (568,221) -
(6,672,916)
- (983,291) -
(17,429,823)
- (4,532,558) 3,991,323
(38,943,791)
- (6,084,070) 3,991,323
(63,046,530)
1,080,511 (1,797,765) - 65,670,886
Business -type activities
capital assets, net $ 95,597,321 $ - $ 1,095,370 $ - $ 96,692,691
Depreciation expense in the amount of $6,084,070 was charged to Transit function of the business -type activities
for the year ended June 30, 2023.
71
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 — Deposit Payable
The City collects deposits for a) improvements within the City, b) donations received for specified services, and c)
deposits received in advance for recreation programs or other department services. These balances represent amounts
that have been collected for which the eligibility requirements for revenue recognition have not been met. As of
June 30, 2023, deposits payable were as follows:
General Fund:
Deposits from developers
Other deposits payable
Total deposits payable
Note 11— Long -Term Liabilities
A. Governmental Activities
$ 2,825,899
1,534,897
$ 4,360,796
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2023 is as
follows:
Balance
July 1, 2022
Balance
Due within
Due in More
(As Restated)
Additions
Deletions
June 30, 2023
One Year
Than One Year
Governmental Activities:
Lease Revenue Bonds
Series 2016A (Golden Valley Road)
$ 7,930,000
$ -
$ (450,000)
$ 7,480,000
$ 470,000
$ 7,010,000
Series 2016B (OSPD)
12,020,000
-
(445,000)
11,575,000
485,000
11,090,000
Series 2019 (Sheriff Station)
25,345,000
-
(530,000)
24,815,000
555,000
24,260,000
Series 2020A (Recreational Facility)
10,645,000
-
-
10,645,000
-
10,645,000
Series 2020A-T (Recreational Facility)
2,790,000
-
(355,000)
2,435,000
355,000
2,080,000
Series 2022A (Energy Efficiency)
-
12,845,000
(450,000)
12,395,000
230,000
12,165,000
Series 2022B (Energy Efficiency)
-
5,970,000
5,970,000
330,000
5,640,000
Issuance premium and discount
2,896,658
716,027
(174,064)
3,438,621
141,598
3,297,023
Subtotal
61,626,658
19,531,027
(2,404,064)
78,753,621
2,566,598
76,187,023
Revenue and Taxable Revenue Bonds
Series 2018A (Streetlights)
11,295,000
-
-
11,295,000
-
11,295,000
Series 2018B (Streetlights)
2,370,000
-
(320,000)
2,050,000
330,000
1,720,000
Issuance premium and discount
470,783
-
(15,969)
454,814
15,969
438,845
Subtotal
14,135,783
-
(335,969)
13,799,814
345,969
13,453,845
Financed purchase notes payable
129,277
-
(31,901)
97,376
33,158
64,218
Lease liabilities
880,316
-
(335,767)
544,549
284,315
260,234
Subscription liabilities
3,605,688
(762,482)
2,843,206
728,428
2,114,778
Total bonds and notes payable,
lease and subscription liabilities
80,377,722
19,531,027
(3,870,183)
96,038,566
3,958,468
92,080,098
Compensated absences
4,071,368
3,388,047
(2,741,254)
4,718,161
2,741,254
1,976,907
Claims andjudgments
4,645,360
6,078,585
(3,283,349)
7,440,596
1,270,000
6,170,596
Total governmental activities
$ 89,094,450
$28,997,659
$ (9,894,786)
$ 108,197,323
$ 7,969,722
$ 100,227,601
72
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11- Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
The City has outstanding bonds and notes from direct borrowings and lease/subscription payable related to
governmental activities totaling $92,650,811 and $3,387,755, 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, 2023, were
$7,480,000 for Series 2016A and $11,575,000 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.
The future annual debt service requirements for the Lease Revenue Bonds, Series 2016A are as followed:
Year Ending
June 30,
Principal
Interest
Total
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
550,000
150,000
700,000
2029-2033
2,925,000
551,825
3,476,825
2034-2036
2,005,000
91,275
2,096,275
Total
$ 7,480,000
$ 1,579,100
$ 9,059,100
The future annual debt service requirements for the Lease Revenue Bonds, Series 2016B are as followed:
Year Ending
June 30, Principal Interest Total
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
655,000
255,756
910,756
2029-2033
3,800,000
1,054,835
4,854,835
2034-2038
4,935,000
404,875
5,339,875
Total
$ 11,575,000
$ 2,947,790
$ 14,522,790
73
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 I 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, 2023, was $24,815,000. 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
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
675,000
753,063
1,428,063
2029-2033
3,870,000
3,270,963
7,140,963
2034-2038
4,685,000
2,453,763
7,138,763
2039-2043
5,465,000
1,677,413
7,142,413
2044-2048
6,340,000
806,663
7,146,663
2049
1,385,000
43,281
1,428,281
Total
$ 24,815,000
$ 12,324,148
$ 37,139,148
74
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 1 and June 1 of each year commencing on December 1, 2020. Principal payments are due annually in
various amounts commencing June 1, 2030 through June 1, 2050 for Series 2020A and June 1, 2021 through
June 1, 2030 for Series 2020A-T. Net bond proceeds in the amount of $14,200,000 were used to reimburse the City
in October 2020 for its acquisition of an approximately 4.4 acre parcel and 93,000 square foot recreational facility
located at 27745 Smyth Drive within the City.
The total unpaid balance as of June 30, 2023, was $13,080,000. 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
2024
$ -
$ 312,206
$ 312,206
2025
-
312,206
312,206
2026
-
312,206
312,206
2027
-
312,206
312,206
2028
-
312,206
312,206
2029 -2033
1,405,000
1,504,781
2,909,781
2034-2038
2,275,000
1,269,175
3,544,175
2039-2043
2,555,000
983,094
3,538,094
2044-2048
3,050,000
489,513
3,539,513
2049-2050
1,360,000
56,375
1,416,375
Total
$ 10,645,000
$ 5,863,968
$ 16,508,968
The future annual debt service requirements for the Taxable Revenue Bonds, Series 202OA-T are as followed:
Year Ending
June 30,
Principal
Interest
Total
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
375,000
20,210
395,210
2029-2030
610,000
17,709
627,709
Total
$ 2,435,000
$ 171,941
$ 2,606,941
75
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11- Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Revenue and Revenue Bonds, Series 2022A and 2022E (EneM f�zciency Program)
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 1 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 commences 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.
The total unpaid balance as of June 30, 2023, was $18,365,000. 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 2022A are listed below:
Year Ending
June 30,
Principal
Interest
Total
2024
$ 230,000
$ 578,050
$ 808,050
2025
245,000
566,550
811,550
2026
255,000
534,300
789,300
2027
270,000
541,550
811,550
2028
280,000
528,050
808,050
2029-2033
1,635,000
2,414,500
4,049,500
2034-2038
2,090,000
1,962,500
4,052,500
2039-2043
2,615,000
1,433,725
4,048,725
2044-2048
3,255,000
794,475
4,049,475
2049-2050
1,520,000
103,500
1,623, 500
Total
$ 12,395,000
$ 9,457,200
$ 21,852,200
The future annual debt service requirements for the Lease Revenue Bonds, Series 2022B are as followed:
Year Ending
June 30,
Principal
Interest
Total
2024
$ 330,000
$ 290,250
$ 620,250
2025
350,000
273,250
623,250
2026
370,000
255,250
625,250
2027
390,000
236,250
626,250
2028
410,000
216,250
626,250
2029-2033
2,375,000
745,125
3,120,125
2034-2036
1,745,000
133,625
1,878,625
Total
$ 5,970,000
$ 2,150,000
$ 8,120,000
76
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11— Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Revenue and Tax Revenue Bonds, Series 2018 A and 2018E (Streetli hts�Acyuisition 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, 2023, 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, 2023, was $2,050,000. 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
2024
$ -
$ 465,394
$ 465,394
2025
-
465,394
465,394
2026
-
465,394
465,394
2027
-
465,394
465,394
2028
-
465,394
465,394
2029-2033
1,840,000
2,153,031
3,993,031
2034-2038
2,545,000
1,750,741
4,295,741
2039-2043
3,060,000
1,197,550
4,257,550
2044-2048
3,850,000
401,325
4,251,325
Total
$11,295,000
$ 7,829,617
$ 19,124,617
The future annual debt service requirements for the 2018 Taxable Revenue Bonds Series B are as follows:
Year Ending
June 30,
Principal
Interest
Total
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
375,000
17,672
392,672
2029
290,000
5,438
295,438
Total
$ 2,050,000
$ 216,960
$ 2,266,960
77
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11— Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Finance Purchase Notes Pavable
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
2024
$ 33,158
$ 3,184
$ 36,342
2025
34,464
1,878
36,342
2026
29,754
531
30,285
Total
$ 97,376
$ 5,593
$ 102,969
Lease Liabilities
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
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
$ 544,549
$ 1,795
$ 546,344
78
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11— Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription Liabilities
The City entered into subscription agreements with various vendors for software. The agreements expire from
March 12, 2025 to June 30, 2029 with interest rates range from 1.58 percent to 2.65 percent.
The future subscription payments are as follows:
Year Ending
June 30,
Principal
Interest
Total
2024
$ 728,428
$ 67,693
$ 796,121
2025
515,963
51,572
567,535
2026
378,593
39,697
418,290
2027
399,208
30,350
429,558
2028
420,676
20,488
441,164
2029
400,338
10,088
410,426
Total
$ 2,843,206
$ 219,888
$ 3,063,094
Compensated Absences
The balance at June 30, 2023, was $4,718,161. The General Fund is used to liquidate the compensated absences for
governmental activities.
Claims and Judgments
The balance at June 30, 2023, was $7,440,596. See Note 12 for more details.
B. Business -Type Activities
Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year
Business -type activities
Compensated absences $ 142,765 $ 47,817 $ (53,926) $ 136,656 $ 53,926 $ 82,730
The Transit Enterprise Fund is used to liquidate the compensated absences for business -type activities.
79
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11— Long -Term Liabilities (Continued)
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.
Balance
Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year
Fiduciary Activities:
RDA Successor Agency:
Loans from the City of Santa Clarita $ 16,098,270 $ 292,837 $ (796,221) $ 15,594,886 $ $ 15,594,886
Tax Allocation Bonds:
Refunding Series 2017 30,615,000
Unamortized Bond discounts 679,567
(935,000) 29,680,000 985,000 28,695,000
(33,660) 645,907 33,660 612,247
Total fiduciary activities $ 47,392,837 $ 292,837 $ (1,764,881) $ 45,920,793 $ 1,018,660 $ 44,902,133
Loans from the Cib� 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 DeveloperFees Special Revenue Fund to reflect increased interest balances. The unpaid amount
of these notes is $8,045,445 and $7,549,442, respectively, which include unpaid accrued interest of $3,604,101 and
$2,229,555, respectively.
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 $1,902,674 as of June 30, 2023. 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, 2023, was $29,680,000.
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.
80
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11— Long -Term Liabilities (Continued)
C. Fiduciary Funds (Continued)
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 (1) a sum equal to the total of all amounts paid by the Insurer under the Insurance Policy (the
"Insurer Advances"); and (n) 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 (1) the per annum rate of interest, publicly announced
from time to time by JPMorgan Chase Bank at its principal office in The City of New York, as its prime or base
lending rate (any change in such rate of interest to be effective on the date such change is announced by JPMorgan
Chase Bank) plus 3%, and (ii) the then applicable highest rate of interest on the Insured Bonds (or Bonds for the
Reserve Policy) and (b) the maximum rate permissible under applicable usury or similar laws limiting interest rates.
The annual debt service requirements for the Tax Allocation Bond Refunding Series 2017 are presented below:
Year Ending
June 30,
Principal
Interest
Total
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
1,195,000
945,119
2,140,119
2029 -2033
6,665,000
4,027,637
10,692,637
2034-2038
7,970,000
2,686,697
10,656,697
2039-2043
9,605,000
990,500
10,595,500
Total
$ 29,680,000
$ 12,939,754
$ 42,619,754
81
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11— Long -Term Liabilities (Continued)
D. Non -City Obligations
1915 Act Limited Obligation Improvements Bonds Golden Valley
On July 24,1996, $879,432 of 1915 Act Limited Obligation Improvement Bonds (1915 Golden Valley Road Bonds)
for the Golden Valley Road Improvement Assessment District (the Golden Valley Assessment District) were issued.
The 1915 Golden Valley Road Bonds are not a general obligation of the City, and neither the faith and credit nor
the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the
property assessments within the Golden Valley Assessment District. The principal amount of debt outstanding at
June 30, 2023 was $70,000.
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, 2023 was $265,000.
Communitv 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, 2023 was $11,450,000.
Community Facilities District No. 2016-1 Vista Canyon
On February 13, 2020, $17,230,000 of Special Tax bonds were issued for Community Facilities District No. 2016-
1 (the Community Facilities District). The Special Tax Refunding bonds are not a general obligation of the City,
and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source
of the debt service is from the property assessments within the Community Facilities District. The principal amount
of the debt outstanding at June 30, 2023 was $17,020,000.
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.
82
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 12 — Risk Management (Continued)
A. Special Districts Risk Management Authority ("SDRMA') (Continued)
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") effective July 1, 2021. CJPIA is a self-
insurance risk pool that serves its members. Claims incurred prior to joining CJPIA continue to be administered by
SDRMA.
Risk Pool Membershi
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.
Excess Liability Proms
Liability coverage includes auto liability, employment practices liability, public officials' errors and omissions,
bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration
liability. The City has a retained limit of $100,000 per occurrence. The overall coverage limit for each member,
including all layers of coverage, is $50 million per occurrence. 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 the CJPIA's website: httDs://cinia.ore/coverage/risk-shanne-Dools/.
Excess Workers' Compensation Program
The City has a retained limit of $250,000 per occurrence for workers' compensation claims. 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.
83
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 12 — Risk Management (Continued)
B. California Joint Powers Insurance Authority ("CJPIA') (Continued)
Purchased Insurance
All -Risk Property Protection Program. This insurance protection is underwritten by several insurance
companies. The City's property is currently insured according to a schedule of covered property submitted by the
City to the Authority. The total insured value of scheduled City property is $320,632,388. There is a $10,000
deductible per occurrence except for non -emergency vehicle insurance which has a $2,500 deductible.
Pollution Legal Liability Insurance Program. 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. The Authority has an aggregate limit of $20 million.
Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance,
depositor's forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy
limit is $5,000,000, and the deductible is $25,000.
Adeyuacy 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 2022-23.
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, 2023, and its two preceding years:
Current Year
Balance at
Claims and Changes
Year Ended
July 1
in Estimates
June 30, 2021
$ 4,901,109
$ 2,751,537 $
June 30, 2022
6,410,646
2,265,135
June 30, 2023
4,645,360
6,078,585
Current Year
Claim
Balance at
Payments
June 30
(1,242,000)
$ 6,410,646
(4,030,421)
4,645,360
(3,283,349)
7,440,596
84
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 13 — Pension Plan
A. Generallnformation 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. CalPERS 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, 2021 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:
Miscellaneous
Tier 1
Tier 2
Tier 3
Benefit formula
2.7% (a.) 55
2% (a.) 60
2% (a.) 62
Benefit vesting schedule
5 years of service
5 years of service
5 years of service
Benefit payments
Monthly for hie
Monthly for hie
Monthly for hie
Retirement age
50-55
50-60
52-62
Required employee contribution rates
8.000%
7.000%
6.250%
Required employer contribution
during measurement period
9.040%
9.040%
9.040%
Applies to:
Employees
Employees hired
Employees hired
hired before
between April 9, 2011
January 1,2013 or later
April9, 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*
* 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
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.
85
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 13 — Pension Plan (Continued)
A. General Information about the Pension Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2021, the valuation date, the following employees were covered by the benefit terms:
Active employees 464
Transferred and terminated employees 480
Retired Employees and Beneficiaries 273
Total 1,217
Cnntrihutinn.c
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, 2023were in the
amount of $9,123,275.
B. Net Pension Liability
Actuarial Methods and Assumption Used to Determine Total Pension Liability
The June 30, 2021 valuation was rolled forward to determine the June 30, 2022 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(l)
June 30, 2021
June 30, 2022
July 1, 2021 to June 30, 2022
Entry Age Actuarial
6.90%
2.300%
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 2021 Ca1PERS Experience
Study for the period from 2001 to 2019.
Derived using CalPERS' Membership Data for all Funds.
(')The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2001 to 2019. Pre -retirement
and Post -retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by
the Society of Actuaries.
86
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 13 — Pension Plan (Continued)
B. Net Pension Liability (Continued)
Changeo Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced
from 7.15% to 6.90%. In determining the long-term expected rate of return, Ca1PERS took into account long-term
market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes
are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long
term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In
addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021
Ca1PERS Experience Study and Review of Actuarial Assumptions.
Long-term Expected Rate o 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, Ca1PERS took into account both short-term and long-term
market return expectations. Using historical returns of all of the funds' asset classes, expected compound
(geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of
return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates
of return by asset class are as follows.
Assumed Asset Real Return
Asset Class(i) Allocation Years 1' 2
Global Equity - Cap -weighted
30.00%
4.54%
Global Equity - Non -Cap -weighted
12.00%
3.84%
Private Equity
13.00%
7.28%
Treasury
5.00%
0.27%
Mortgage -backed Securities
5.00%
0.50%
Investment Grade Corporates
10.00%
1.56%
High Yield
5.00%
2.27%
Emerging Market Debt
5.00%
2.48%
Private Debt
5.00%
3.57%
Real Assets
15.00%
3.21%
Leverage
-5.00%
-0.59%
100.00%
i An expected inflation rate of 2.30% used
2 Figures are based on 2021 Asset Liability Management Study
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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.
87
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2021 (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, 2021 to June 30, 2022
Balance at June 30, 2022 (Measurement Date)
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) _ (a) - (b)
$ 242,217,576 $ 242,650,514 $ (432,938)
6,170,934 - 6,170,934
17,206,725 - 17,206,725
10,873,827
-
10,873,827
(2,536,083)
-
(2,536,083)
-
8,462,964
(8,462,964)
-
2,704,400
(2,704,400)
-
(18,522,060)
18,522,060
(8,535,910)
(8,535,910)
-
-
(151,157)
151,157
23,179,493
(16,041,763)
39,221,256
$ 265,397,069 $
226,608,751 $
38,788,318
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 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate
that is 1 percentage -point lower (5.90%) or 1 percentage -point higher (7.90%) than the current rate:
Plan's Net Pension Liability/(Asset)
Discount Rate Current Discount Discount Rate
- 1%(5.90%) Rate (6.90%) + 1%(7.90%)
Miscellaneous Plan $ 79,621,570 $ 38,788,318 $ 5,596,459
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued Ca1PERS financial
report.
88
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, the City recognized pension expense in the amounts of $8,923,120 for the
miscellaneous plan.
As of measurement date of June 30, 2022, the City has deferred outflows and deferred inflows of resources related
to pensions as follows:
Miscellaneous Plan
Contribution made after measurement period $
Changes of assumptions
Difference between expected and actual experience
Net difference between projected and actual earning
on pension plan investments
Total
Deferred outflows Deferred inflows
of Resources of Resources
9,123,275 $ -
8,457,421 -
1,694,788 (1,972,509)
11,625,783
30,901,267 $ (1,972,509)
The amounts above are net of outflows and inflows recognized in the 2021-2022 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 2021-22 measurement
period is 4.5 years, which was obtained by dividing the total service years of 5,489 (the sum of remaining service
lifetimes of the active employees) by 1,217 (the total number of participants: active, inactive, and retired),
respectively.
The $9,123,275 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, 2024.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in the future pension expense as follows:
Year Ending Deferred Outflows/
June 30,
(Inflows) of Resources
2024
$ 4,868,392
2025
4,053,363
2026
2,888,366
2027
7,995,362
Total $ 19,805,483
89
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 1I-
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 i�ty 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, 2023 measurement date, the following numbers of participants were covered by the benefit terms:
Active plan members
Inactive plan members currently receiving benefits
Inactive plan members entitled to but not receiving benefits
Total
457
152
36
645
90
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 14 — Other Postemployment Benefits ("OPEB") (Continued)
A. General Information about the OPEB Plan (Continued)
Contrihutionv
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 2023 was negative $615,000, and no cash contribution was made. In addition, the City received a credit
in the amount of $253,000 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 $1,202,278.
Additional $253,000 implied subsidy benefits were reported, which resulted in reporting total benefit payments to
plan participants in the amount of $1,455,278.
B. Net OPEB Liability
The OPEB liability was measured as of June 30, 2023, and total liability used to calculate the net OPEB liability
was determined by an actuarial valuation as of June 30, 2023.
SipniLiCant Actuarial Assumptions Used for Total OPEB Liability
The total OPEB liability, measured as of June 30, 2023, was determined using the following actuarial assumptions:
Actuarial Valuation Date
Contribution Policy
Discount Rate and Long -Term Expected Rate of
Return
Inflation
Mortality, Retirement, Disability, Termination
Mortality Improvement
June 30, 2022
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 6.00% at June 30, 2023
Expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust
2.50% annually
CaIPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021
Salary Increases
Aggregate - 2.75% annually
Merit - CaIPERS 2000-2019 Experience Study
Medical Trend
Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate of
3.45% in 2076;
Medicare - 7.50% for 2024, decreasing to an ultimate rate of
3.45% in 2076;
Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate
of 3.45% in 2076
PEMHCA Minimum Increases
3.50% annually
Participation at Retirement
Hired < 1/1/08 - 95%
Hired > 1/1/08 - 60%
Waived Retirees Reelection
5% re-elect at 65 for pre-65
Cap Increase
No increase in $1,016.58 cap; Medical trend for EE+1 cap
91
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 14 — Other Postemployment Benefits ("OPEB") (Continued)
B. Net OPEB Liability (Continued)
Change in assumptions
The discount rate was changed from 6.25% at June 30, 2022 to 6.00% at June 30, 2023.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.00%. 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 ofReturn
Asset Class
Global Equity
Fixed Income
Cash
Assumed Long -Term Rate of Inflation
Expected Long -Term Net Rate of Return, Rounded
C. Change in Net OPEB Liability
Target Allocation
Expected Real
60.00%
4.56%
35.00%
78.00%
5.00%
-0.50%
100.00%
2.50%
6.00%
The following presents the changes in the net OPEB liability for the governmental activities' Retiree Health Plan:
Balance at June 30, 2022
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total OPEB liability
Net investment income
Employer cash contribution
Employer implied subsidy contribution
Administrative Expenses
Benefit payments, including implied subsidy payments
Assumption changes
Plan experience
Investment experience
Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/ (Asset)
(a) (b) (c) = (a) - (b)
$ 41,990,707 $ 44,062,275 $ (2,071,568)
1,076,110
-
1,076,110
2,646,199
-
2,646,199
-
3,955,861
(3,955,861)
-
253,000
(253,000)
-
(86,061)
86,061
(1,455,278)
(1,455,278)
-
812,693
-
812,693
(3,466,684)
-
(3,466,684)
Net Changes during July 1, 2022 to June 30, 2023 (386,960) 2,667,522 (3,054,482)
Balance at June 30, 2023 (Measurement Date) $ 41,603,747 $ 46,729,797 $ (5,126,050)
92
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 (5.00 percent) or 1-percentage- point
higher (7.00 percent) than the current discount rate:
Plan's Net OPEB Liability / (Asset)
Discount Rate Current Discount Discount Rate
-1%(5.00%) Rate (6.00%) +1 %(7.00%)
$ 455,031 $ (5,126,050) $ (9,764,127)
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%
$ (10,621,091) $ (5,126,050) $ 1,626,485
OPEB Expense and Deferred Outflows ofResources and Deferred Inflows ofResources Related to OPEB
For the measurement period ended June 30, 2023, the City recognized OPEB credit in the amount of $999,981. At
June 30, 2023, 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 $ 6,359,504 $ (11,773,645)
Difference between expected and actual experience - (10,039,736)
Net difference between projected and actual earning on
OPEB plan investments 2,192,517
Total $ 8,552,021 $ (21,813,381)
Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as
expense as follows:
Deferred
Measurement Period Outflows/(Inflows)
Ending June 30, of Resources
2024
$ (2,075,939)
2025
(2,314,539)
2026
(558,337)
2027
(2,622,700)
2028
(1,790,178)
Thereafter
(3,899,667)
Total $ (13,261,360)
93
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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
Long-term fixed income
Intermediate -term fixed income
Short-term fixed income
High -yield portion of the plan
Equity
Maximum Percentage of Minimum Percentage of
Total Plan Assets Total Plan Assets
20%
0%
50%
15%
15%
0%
8%
0%
Domestic large cap equity
50%
20%
Domestic mid -capitalization equity
15%
0%
Domestic small -capitalization equity
20%
0%
International equity
20%
0%
Real estate
10%
0%
Cash and investments related to the Plan consist of the following:
Assets
Money market funds
U.S. Treasury
U.S. government enterprise securities
Corporate notes
Foreign notes
Municipal bonds
Domestic common stocks
Foreign stocks
Mutual funds - equity
Mutual funds - fixed income
Total Assets
Accrued Income
Total
E. Concentrations of Credit Risk
Fair Value
$ 2,316,397
3,661,500
4,730,031
3,896,547
97,753
488,950
5,557,429
116,880
21,157,980
4,586,969
46,610,436
119,362
$ 46,729,798
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 $ 2,447,913 5%
Ishares Russel Mid Cap Mutual Funds - Equity 2,388,446 5%
Vanguard Growth and Income Mutual Funds - Equity 2,274,888 5%
94
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, there were 1,710 participants in the plans. The employer and employee
contributions were in the amounts of $474,391 and $2,508,357, 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, 2023, 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, 2022 Additions
$ 21,955,779 $
11,927,888
380,692
15,571,175
Balance
Deletions June 30, 2023
$ - $ 21,955,779
11,927,888
- - 380,692
- - 15,571,175
Total Bridge and Thoroughfare Credits $ 49,835,534 $ - $ - $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 proceeds
Net investment in capital assets
Governmental Business -Type
Activities Activities
$1,197,956,002 $ 96,692,691
1,247,469
(96,038,566)
21,769,366
$1,124,934,271 $ 96,692,691
95
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 18 — Classification of Fund Balances
At June 30, 2023, fund balances are classified in the governmental funds as follows:
Major Governmental funds
Landscape American Nonmajor Total
General Budge and Developer Public Maintenance Rescue Governmental Governmental
Fund Thoroughfare Fees Library District #1 Plan Funds Funds
Nonspendable:
Prepaid items
$ 429,190
$ $
$ 11,086 $ $
2,596 61,285
$ 504,157
Deposits
60,000
-
- -
60,000
Notes to RDA
Successor Agency
8,045,445
8,045,445
Advances to other funds
5,760,795
5,760,795
Total nonspendable
14,295,430
11,086
2,596 61,285
14,370,397
Restricted:
Landscape maintenance
-
- 24,518,473
- 6,846,659
31,365,132
Lighting District
-
15,75 8,852
15,758,852
Capital improvements
8,154,170 3,596,752
5,772,673
17,523,595
Transportation
- -
42,415,250
42,415,250
Open space preservation
-
7,218,636
7,218,636
Public safety
656,488
-
437,283
1,093,771
Public Library
-
5,396,073
4,274,301
9,670,374
Air quality improvement
4,422
-
558,416
562,838
Stormwater
-
5,028,007
5,028,007
Public education and
government
-
767,529
767,529
Tourism marketing
-
968,031
968,031
Low and moderate income
housing
298,820
4,997,278
5,296,098
Clean safe water
-
6,557,914
6,557,914
Bond proceeds for:
Capital projects
21,340,238
429,128
21,769,366
Debt services
727
-
727
Pensions
2,173,310
-
-
-
2,173,310
Other
-
- 7,507,817
- -
3,106,578
10,614,395
Total restricted
23,514,275
8,154,170 12,064,299
5,396,073 24,518,473
105,136,535
178,783,825
Committed:
Capital improvement
-
- 1,584
- -
-
1,584
Total committed
-
1,584
-
1,584
Assigned:
Operational
754,471
754,471
Capital projects
34,807,650
39,552
3,183,322
38,030,524
Public facilities
130,693,624
-
-
130,693,624
Total assigned
166,255,745
39,552
3,183,322
169,478,619
Unassigned
63,696,700
- -
- -
(2,596) (5,057,307)
58,636,797
Total Fund Balance
$267,762,150
$ 8,154,170 $12,105,435
$ 5,407,159 $24,518,473 $
- $103,323,835
$421,271,222
96
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, 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, 2023. At year-end, the City's commitments with contractors for these
projects are as follows:
Projects
Commitments
Arts
$ 48,500
Beautification
895,086
Circulation
4,481,515
Facilities & Buildings
14,701,641
Maintenance
23,800,917
Parks & Recreation
9,892,335
Resource & Conservation
28,848,540
Street & Bridges
3,870,760
Trails & Transit
2,155,832
$ 88,695,126
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, 2023, as follows:
Amount
General Fund $ 35,562,121
Other governmental Funds 44,608,815
97
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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.
RM-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 was successful in a first round of challenges to the Complaint to eliminate RFI as a Plaintiff. An amended
Complaint was filed on behalf of Bermite, based upon its prior ownership of 30 acres. The City again brought
challenges to the Bermite complaint —motions to dismiss and an Anti-SLAPP motion. The City was successful in
eliminating all but one cause of action, and the City was awarded attorney's fees. The claim against the City has
been reduced to $30 million due to Bermite being the only remaining Plaintiff. Discovery has just commenced.
The City's insurance provider, SDRMA, is providing defense and indemnification under a reservation of rights.
The City has $10 million in coverage through SDMRA. The City has excess liability coverage in the amount of $15
million excess through Evanston Insurance. Evanston has provided the City with a reservation of rights letter and
will provide coverage accordingly. 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 an 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.
98
City of Santa Clarita
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023.
Special Assessment Special Revenue Fund:
Operating - personnel $
Community Development Block Grant Special Revenue Fund:
Operating- operations and maintenance
Measure W Safe Clean Water Special Revenue Fund:
Operating - personnel
Tourism Marketing District Special Revenue Fund:
Operating- opearations and maintenance
B. Deficit Net Positions and Fund Balances
Expenditure
in Excess of
Expenditure Appropriation Appropriation
68,393 $
61,913 $
(6,480)
176,487
168,835
(7,652)
153,938
153,414
(524)
9,765
8,568
(1,197)
Funds with deficit fund balances and net position at June 30, 2023 are as follows:
Special Revenue Funds:
Bikeway
$ (907)
Community Development Block Grant
(5,862)
Surface Transportation Program
(10,900)
Measure H Homeless Initiatives
(22,774)
Measure R Highway Improvement
(621,967)
Measure M ATP
(282,322)
Measure A Safe Parks
(3,265,726)
Misc Grants
(828,095)
The deficit fund balances will be eliminated through reimbursement from grantor agencies.
Note 22 — Restatement of Beginning Net Position
Governmental Activities
The beginning net position for governmental activities was restated to implement GASB 96 as follows:
Governmental
Net Position, as previously reported $1,394,712,078
Subscription assets 3,614,088
Subscription liabilities (3,605,688)
Net Position, as restated $1,394,720,478
99
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100
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
101
This page intentionally left blank.
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, 2023
Original Final
Budget Budget
$ 106,513,746
8,365,931
129,309
9,942,818
2,540,409
920,000
897,080
129,309,293
49,922,548
44,849,503
1,092,879
11,496,000
107,360,930
$ 107,818,582
9,865,931
2,291,516
10,976,188
2,540,409
1,134,509
1,118,471
135,745,606
52,812,274
48,262,523
1,863,156
51,706,058
154,644,011
Actual
$ 110,859,494
13,073,140
2,320,990
12,077,252
3,236,512
1,275,178
1,397,011
144,239,577
48,498,555
44,490,368
478,898
11,673,398
105,141,219
Variance with
Final Budget
$ 3,040,912
3,207,209
29,474
1,101,064
696,103
140,669
278,540
8,493,971
4,313,719
3,772,155
1,384,258
40,032,660
49,502,792
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 21,948,363 (18,898,405) 39,098,358 57,996,763
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
1,858,973
(21,208,466)
(19,349,493)
$ 2,598,870
21,299,579
(22,363,474)
(1,063,895)
$ (19,962,300)
21,282,272
(21,368,298)
(86,026)
(17,307)
995,176
977,869
39,012,332 $ 58,974,632
228,749,818
$ 267,762,150
103
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund
For the Year Ended June 30, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Investment earnings
$ 371,883
$ 588,139 $
733,410
$ 145,271
Developer fees
-
-
729,603
729,603
Other revenues
368,724
368,724
375,044
6,320
Total revenues
740,607
956,863
1,838,057
881,194
EXPENDITURES:
Operating:
Personnel
112,263
110,900
108,623
2,277
Operations and maintenance
397,354
705,747
707,758
(2,011)
Capital improvement projects
600,000
5,520,031
887,335
4,632,696
Total expenditures
1,109,617
6,336,678
1,703,716
4,632,962
NET CHANGE IN FUND BALANCE
$ (369,010)
$ (5,379,815)
134,341
$ 5,514,156
FUND BALANCE:
Beginning of year
8,019,829
End of year
$
8,154,170
104
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Developer Fees Special Revenue Fund
For the Year Ended June 30, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Investment earnings
$ 23,257
$ 23,257
$ 124,201 $
100,944
Developer fees
-
2,430,688
2,015,872
(414,816)
Other revenues
-
40,000
199,597
159,597
Total revenues
23,257
2,493,945
2,339,670
(154,275)
EXPENDITURES:
Operating:
Operations and maintenance
-
1,858,347
1,583,348
274,999
Capital improvement projects
2,918,859
3,424,799
79,869
3,344,930
Total expenditures
2,918,859
5,283,146
1,663,217
3,619,929
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(2,895,602)
(2,789,201)
676,453 3,465,654
OTHER FINANCING (USES):
Transfers out
(100,000)
(58,176)
(58,176) -
Total other financing (uses)
(100,000)
(58,176)
(58,176) -
NET CHANGE IN FUND BALANCE
$ (2,995,602) $
(2,847,377)
618,277 $ 3,465,654
FUND BALANCE:
Beginning of year
End of year
11,487,158
$ 12,105,435
105
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Public Library Special Revenue Fund
For the Year Ended June 30, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Taxes
$ 8,959,540
$ 8,959,540
$ 9,439,660 $
480,120
Charges for services
428,574
428,574
354,628
(73,946)
Investment earnings
38,606
38,606
276
(38,330)
Other revenues
83,092
192,984
180,548
(12,436)
Total revenues
9,509,812
9,619,704
9,975,112
355,408
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital outlay
Capital improvement projects
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
4,833,726
4,933,081
4,466,055
467,026
3,113,676
3,316,705
3,204,021
112,684
-
203,973
203,973
-
283,800
283,800
228,020
55,780
8,231,202
8,737,559
8,102,069
635,490
1,278,610 882,145 1,873,043
- 25,933 25,933
- 25,933 25,933
$ 1,278,610 $ 908,078 1,898,976
3,508,183
$ 5,407,159
990,898
$ 990,898
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Taxes
$ 275,213
$ 275,213
$ 285,490 $
10,277
Special assessments
14,813,474
15,008,474
15,362,717
354,243
Investment earnings
262,682
262,682
288,486
25,804
Total revenues
15,351,369
15,546,369
15,936,693
390,324
EXPENDITURES:
Operating:
Personnel
1,368,076
1,550,856
1,380,271
170,585
Operations and maintenance
13,600,344
14,342,142
12,406,917
1,935,225
Capital improvement projects
2,536,237
3,025,242
779,985
2,245,257
Total expenditures
17,504,657
18,918,240
14,567,173
4,351,067
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (2,153,288) (3,371,871) 1,369,520 4,741,391
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
(57,000) (57,000) (57,000)
(47,000) (47,000) (47,000)
$ (2,200,288) $ (3,418,871)
1,322,520 $ 4,741,391
23,195,953
$ 24,518,473
107
City of Santa Clarita
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - American Rescue Plan Special Revenue Fund
For the Year Ended June 30, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Intergovernmental
$ 4,613,755
$ 14,333,739 $
8,784,745
$ (5,548,994)
Total revenues
4,613,755
14,333,739
8,784,745
(5,548,994)
EXPENDITURES:
Operating:
Personnel
60,332
74,684
73,617
1,067
Operations and maintenance
176,584
194,558
182,834
11,724
Capital improvement projects:
3,823,600
14,236,755
8,528,294
5,708,461
Total expenditures
4,060,516
14,505,997
8,784,745
5,721,252
NET CHANGE IN FUND BALANCE
$ 553,239
$ (172,258)
-
$ 172,258
FUND BALANCE:
Beginning of year
-
End of year
$
-
108
City of Santa Clarita
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2023
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 custodial
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. There is no adopted budget for Santa Clarita Public Television Authority Special Revenue Fund and
Public Financing Authority Capital Projects Fund.
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, 2023
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 resources movement
Administrative expense
Other miscellaneous income/expense'
Net change in plan fiduciary net position
Plan fiduciary net position - beginning2
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 payrol13
2021-22 2020-21 2019-20 2018-19 2017-18
$ 6,170,934 $ 5,527,979 $ 5,350,001 $ 5,104,511 $ 4,920,377
17,206,725 16,234,316 15,203,985 14,120,352 13,037,446
10,873,827 - - - (1,615,911)
(2,536,083) 1,168,851 2,498,828 3,019,582 1,709,604
(8,535,910) (7,668,205) (7,134,971) (6,246,516) (5,601,353)
23,179,493 15,262,941 15,917,843 15,997,929 12,450,163
242,217,576 226,954,635 211,036,792 195,038,863 182,588,700
$ 265,397,069 $ 242,217,576 $ 226,954,635 $ 211,036,792 $ 195,038,863
$ 8,462,964 $ 11,219,959 $ 15,978,300 $ 12,500,090 $ 9,664,637
2,704,400 2,551,579 2,530,805 2,478,266 2,203,916
(18,522,060) 44,522,336 8,957,955 10,255,487 11,713,900
(8,535,910)
(7,668,205)
(7,134,971)
(6,246,516)
(5,601,353)
(355)
(151,157)
(192,013)
(242,657)
(109,362)
(211,742)
-
-
355
(402,101)
(16,041,763)
50,433,656
20,089,432
18,878,320
17,366,902
242,650,514
192,216,858
172,127,426
153,249,106
135,882,204
$ 226,608,751 $
242,650,514 $
192,216,858
$ 172,127,426
$ 153,249,106
$ 38,788,318 $
(432,938) $
34,737,777
$ 38,909,366
$ 41,789,757
85.38%
100.18%
84.69%
81.56%
78.57%
$ 36,363,784 $ 35,733,541 $ 34,033,087 $ 31,563,882 $ 29,326,360
Plan net pension liability as a percentage
of covered payroll 106.67% -1.21% 102.07% 123.27% 142.50%
' During Fiscal Year 2017-18, CalPERS implemented GASB 75 and 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, CAPERS recorded a correction to previously reported
financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial
Reporting for Pensions (GASB 68).
2Includes any beginning of year adjustment.
3 Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 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: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash
flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the longterm.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate
assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15%
for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
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, 2023
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
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 resources movement
Administrative expense
Other miscellaneous income/expense'
Net change in plan fiduciary net position
Plan fiduciary net position - beginning2
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 payrol13
Plan net pension liability as a percentage
of covered payroll
2016-17 2015-16 2014-15 2013-14
$ 4,921,221 $ 4,409,399 $ 4,418,053 $ 4,462,544
12,166,752 11,315,207 10,443,680 9,588,693
11,654,992 - (3,009,808) -
(1,505,660) (305,665) 416,626
(4,406,046)
(3,347,335)
(2,971,092)
(2,561,655)
22,831,259
12,071,606
9,297,459
11,489,582
159,757,441
147,685,835
13 8,388,376
126, 898,794
S 182,588,700 S
159,757,441
$ 147,685,835
S 138,388,376
S 4,484,866 $ 3,959,503 $ 3,740,145 $ 3,562,246
2,224,721 2,252,522 2,164,107 2,339,435
13,510,656 622,282 2,506,239 16,243,165
(4,406,046) (3,347,335) (2,971,092) (2,561,655)
9,685
(177,534) (71,202) (131,529)
15,636,663
3,415,770
5,317,555
19,583,191
120,245,541
116,829,771
111,512,216
91,929,025
S 135,882,204
S 120,245,541
S 116,829,771
S 111,512,216
S 46,706,496
S 39,511,900
S 30,856,064
S 26,876,160
74.42%
75.27%
79.11%
80.58%
S 28,956,876 S 28,584,202 S 28,017,332 S 26,879,556
161.30% 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, 2023
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
2023
2022
2021
2020
2019
$ 7,123,275 $
6,510,552 $
6,190,238
$ 6,323,890
$ 5,637,826
(9,123,275)
(8,462,978)
(11,219,252)
(15,976,871)
(12,499,992)
$ (2,000,000) $
(1,952,426) $
(5,029,014)
$ (9,652,981)
$ (6,862,166)
$ 37,381,970 $
36,363,784 $
35,733,541
$ 34,033,087
$ 31,563,882
24.41%
23.27%
31.40%
46.95%
39.60%
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for the year ended June 30, 2023 were derived from the
June 30, 2020 funding valuation report.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Actuarial Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair Value Assets. For details, see June 30, 2019 Funding Valuation 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, 2023
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
2018 2017 2016 2015 2014
$ 4,662,191 $ 4,484,140 $ 3,958,892 $ 3,740,138 $ 3,562,246
(9,662,191) (4,484,140) (3,958,892) (3,740,138) (3,562,246)
$ (5,000,000) $ - $ - $ - $ -
$ 29,326,360 $ 28,956,876 $ 28,584,202 $ 28,017,332 $ 26,879,556
32.96% 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, 2023
Measurement period
2022-23
2021-22
2020-21
2019-20
2018-19
Total OPEB liability
Service cost
$ 1,076,110
$
1,100,210
$
2,154,981
$
1,610,969
$
1,701,975
Interest
2,646,199
2,509,052
2,517,070
2,505,286
2,823,979
Changes of benefit terms
-
-
-
-
-
Differences between expected and actual experience
(3,466,684)
-
(5,463,407)
-
(7,334,973)
Changes of assumptions
812,693
-
(17,074,375)
8,477,248
2,078,284
Benefit payments, including refunds of
employee contributions
(1,455,278)
(1,326,369)
(1,265,682)
(1,202,903)
(1,093,711)
Net change in total pension liability
(386,960)
2,282,893
(19,131,413)
11,390,600
(1,824,446)
Total OPEB liability - beginning
41,990,707
39,707,814
58,839,227
47,448,627
49,273,073
Total OPEB liability - ending (a)
$ 41,603,747
$
41,990,707
$
39,707,814
$
58,839,227
$
47,448,627
OPEB fiduciary net position
Contributions - employer
$ 253,000
$
301,000
$
638,000
$
636,000
$
923,250
Net investment income
3,955,861
(7,090,104)
10,837,685
1,475,065
2,618,633
Benefit payments, including refunds of
employee contributions
(1,455,278)
(1,326,369)
(1,265,682)
(1,202,903)
(1,093,711)
Administrative expense
(86,061)
(105,845)
(95,987)
(77,123)
(73,935)
Other expenses
-
-
-
-
-
Net change in plan fiduciary net position
2,667,522
(8,221,318)
10,114,016
831,039
2,374,237
Plan fiduciary net position - beginning
44,062,274
52,283,592
42,169,576
41,338,537
38,964,300
Plan fiduciary net position - ending (b)
$ 46,729,796
$
44,062,274
$
52,283,592
$
42,169,576
$
41,338,537
Plan net OPEB liability (asset) - ending (a) - (b)
$ (5,126,049)
$
(2,071,567)
$
(12,575,778)
$
16,669,651
$
6,110,090
Plan fiduciary net position as a percentage
112.32%
104.93%
131.67%
71.67%
87.12%
of the total OPEB liability
Covered -employee payroll
$ 45,582,496
$
41,385,678
$
35,631,538
$
38,295,087
$
33,895,751
Plan net OPEB liability as a percentage of
covered -employee payroll
-11.25%
-5.01%
-35.29%
43.53%
18.03%
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, 2023
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, 2023
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
Fiscal year ended June 30
2023
2022
2021
2020
2019
Actuarially determined contribution (ADC)
$ 232,000 $
482,000 $
517,000 $
1,112,000 $
1,127,000
Contributions in relation to the
actuarially determined contribution
253,000
301,000
638,000
636,000
923,250
Contribution deficiency (excess)
$ (21,000) $
181,000 $
(121,000) $
476,000 $
203,750
Covered -employee payroll
$ 45,582,496 $
41,385,678 $
35,631,538 $
38,295,087 $
33,895,751
Contributions as a percentage of
covered -employee payroll
0.56%
0.73%
1.79%
1.66%
2.72%
Methods and assumptions used to determine contribution rates:
Contribution valuation date
June 30, 2022
Actuarial cost method
Entry Age Normal, level percentage of payroll
Amortization method
Level percentage of pay
Amortization period
11-year fixed period for 2022/23
Asset valuation method
Investment gains and losses spread over 5-year rolling
Discount Rate
6.00%
General Inflation Rate
2.50%
Medical Trend
Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Non -Kaiser) - 7.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Mortality
Ca1PERS 2000-2019 experience study
Mortality Improvement
Retirement mortality projected fully generational with scale MP-2021
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, 2023
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 -employee 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, 2023
Fiscal year 2023 2022 2021 2020
Actual money -weighted rate of return -
net of investment expense 9.30%-13.55% 26.10% 3.78%
* Fiscal year 2017 was the first year of GASB 74 implementation, therefore, only seven years are shown.
2019 2018
6.94% 8.26%
2017
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 restricted 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 and is restricted 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 are restircted 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 County 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 the operations of the Santa Clarita Public Television
Authority, for which 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, 2023
Special Revenue Funds
Special
Bikeway Gas Tax Proposition A Assessment
ASSETS
Cash and investments
$
262,572
$
-
$
9,961,536
$
4,315,946
Accounts receivable, net
-
19,296
-
-
Interest receivable
990
-
37,558
16,208
Taxes receivables
-
-
-
10,729
Loans receivable
-
-
-
-
Prepaid items
-
-
-
-
Due from other governments
17,383
501,360
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agent
-
-
-
-
Total assets
$
280,945
$
520,656
$
9,999,094
$
4,342,883
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$
281,852
$
124,061
$
1,588
$
24,483
Due to other governments
-
-
-
-
Due to other funds
-
342,103
-
-
Total liabilities
281,852
466,164
1,588
24,483
Deferred Inflows of Resources
Unavailable revenue
-
-
-
-
Total deferred inflows of resources
-
-
-
-
Fund Balances (Deficits):
Nonspendable
-
-
-
-
Restricted
-
54,492
9,997,506
4,318,400
Assigned
-
-
-
-
Unassigned (deficits)
(907)
-
-
-
Total fund balances (deficits)
(907)
54,492
9,997,506
4,318,400
Total liabilities, deferred inflows of
resources and fund balances
$
280,945
$
520,656
$
9,999,094
$
4,342,883
(Continued)
125
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
$ 15,972,181 $ 10,804,587 $ 4,290,058 $ -
343,293 - - -
60,219 40,736 16,175 -
134,097 - - -
27,034 - - -
- - 895,607 250,000
429,128 - - -
$ 750,938 $ 533,532 $ 28,160 $ -
- - - 250,000
750,938 533,532 28,160 250,000
27,034 - - -
16,187,980 10,311,791 5,173,680 -
16,215,014 10,311,791 5,173,680 -
$ 16,965,952 $ 10,845,323 $ 5,201,840 $ 250,000
(Continued)
126
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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 CDBG AQMD
$ 3,847,539 $ - $ - $ 480,285
15,634 - - 1,811
- 33,365 - -
- - 350,060 76,320
$ 3,863,173 $ 33,365 $ 350,060 $ 558,416
$ 1,667,110 $ - $ 343,322 $ -
- 33,365 12,600 -
1,667,110 33,365 355,922 -
2,196,063 - - 558,416
- - (5,862) -
2,196,063 - (5,862) 558,416
$ 3,863,173 $ 33,365 $ 350,060 $ 558,416
(Continued)
127
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
Surface
Transportation BJA Law Supplemental
Stormwater Program Enforcement Law Grant
ASSETS
Cash and investments
$
5,248,721
$
196,975
$
2
$
476,212
Accounts receivable, net
1,537
-
-
-
Interest receivable
19,775
-
-
1,795
Taxes receivables
73,570
-
-
-
Loans receivable
-
-
-
-
Prepaid items
-
-
-
-
Due from other governments
-
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agent
-
-
-
-
Total assets
$
5,343,603
$
196,975
$
2
$
478,007
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$
315,596
$
207,875
$
-
$
40,726
Due to other governments
-
-
-
-
Due to other funds
-
-
-
-
Total liabilities
315,596
207,875
-
40,726
Deferred Inflows of Resources
Unavailable revenue
-
-
-
-
Total deferred inflows of resources
-
-
-
-
Fund Balances (Deficits):
Nonspendable
-
-
-
-
Restricted
5,028,007
-
2
437,281
Assigned
-
-
-
-
Unassigned (deficits)
-
(10,900)
-
-
Total fund balances (deficits)
5,028,007
(10,900)
2
437,281
Total liabilities, deferred inflows of
resources and fund balances
$
5,343,603
$
196,975
$
2
$
478,007
(Continued)
128
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
$ 697,320 $ 4,258,246 $ 658,286 $ 9,270,671
2,630 16,055 2,481 34,953
- - 106,762 -
2,048,067 - - -
- - - 1,008,583
$ 2,748,017 $ 4,274,301 $ 767,529 $ 10,314,207
$ - $ - $ - $ 1,039,520
- - - 1,008,582
- - - 2,048,102
- - - 945,582
- - - 945,582
2,748,017 4,274,301 767,529 7,320,523
2,748,017 4,274,301 767,529 7,320,523
$ 2,748,017 $ 4,274,301 $ 767,529 $ 10,314,207
(Continued)
129
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
$ - $ 70,848 $ 7,722,243 $ -
- - - 201,776
- - 29,115 -
22,774 711,544 - 645,675
$ 22,774 $ 782,392 $ 7,751,358 $ 847,451
$ 494 $ 255,859 $ 390,163 $ 222,729
22,280 - - 624,744
22,774 255,859 390,163 847,473
22,774 262,024 - 621,945
22,774 262,024 - 621,945
- 264,509 7,361,195 -
(22,774) - - (621,967)
(22,774) 264,509 7,361,195 (621,967)
$ 22,774 $ 782,392 $ 7,751,358 $ 847,451
(Continued)
130
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
$ - $ - $ 7,123,890 $ 840,726
- - 26,859 4,286
- - - 102,697
- - - 15,497
314,247 3,264,988 - -
$ 60,515 $ 28,564 $ 592,835 $ 42,771
253,757 3,237,162 - -
314,272 3,265,726 592,835 42,771
282,297 3,264,988 - -
282,297 3,264,988 - -
- - - 15,497
- - 6,557,914 904,938
(282,322) (3,265,726) - -
(282,322) (3,265,726) 6,557,914 920,435
$ 314,247 $ 3,264,988 $ 7,150,749 $ 963,206
(Continued)
131
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
$ 6,893,812 $ - $ 1,893,056 $ 964,965
- 201,776 - -
25,991 - 7,137 3,638
49,421 - - -
- 18,754 - -
- 1,131,395 - -
- - - 206,386
$ 50,379 $ 300,878 $ 146,129 $ -
- - - 34,479
- 748,045 - -
50,379 1,048,923 146,129 34,479
- 1,131,097 - -
- 1,131,097 - -
- 18,754 - -
6,918,845 - 1,754,064 1,140,510
- (846,849) - -
6,918,845 (828,095) 1,754,064 1,140,510
$ 6,969,224 $ 1,351,925 $ 1,900,193 $ 1,174,989
(Continued)
132
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
$ 62,856 $ 8,005,389 $ 538,559 $ 3,370,370
- 19,103 - -
237 6,604 - 12,707
- 136,325 - 12,432
$ - $ 1,320,762 $ 159,201 $ 932,895
63,093 6,846,659 379,358 2,462,614
63,093 6,846,659 379,358 2,462,614
$ 63,093 $ 8,167,421 $ 538,559 $ 3,395,509
(Continued)
133
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
Special Revenue
Fund Capital Projects Funds
Santa Clarita
Public General PFA
Television Capital Capital Civic
Authority Projects Projects Arts Projects
ASSETS
Cash and investments $ 97 $ 3,360,542 $ - $ 301,903
Accounts receivable, net - - - -
Interest receivable - - - 1,137
Taxes receivables - - - -
Loans receivable - - - -
Prepaid items - - - -
Due from other governments - - - -
Restricted assets:
Cash and investments - - - -
Cash and investments with fiscal agent
- -
- -
Total assets $
97 $ 3,360,542 $
- $ 303,040
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $
- $ 480,260 $
- $ -
Due to other governments
- -
- -
Due to other funds
- -
-
Total liabilities
- 480,260
- -
Deferred Inflows of Resources
Unavailable revenue
-
-
Total deferred inflows of resources
- -
- -
Fund Balances (Deficits):
Nonspendable
- -
- -
Restricted
97 -
- -
Assigned
- 2,880,282
- 303,040
Unassigned (deficits)
- -
- -
Total fund balances (deficits)
97 2,880,282
- 303,040
Total liabilities, deferred inflows of
resources and fund balances $
97 $ 3,360,542 $
- $ 303,040
(Continued)
134
City of Santa Clarita
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
ASSETS
Cash and investments
Accounts receivable, net
Interest receivable
Taxes receivables
Loans receivable
Prepaid items
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
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
Public Total Nonmajor
Financing Governmental
Authority Funds
$ 1,085,563 $ 112,975,956
- 786,781
- 384,731
- 659,398
- 2,048,067
- 61,285
- 9,189,936
- 635,514
23,188 23,188
$ 1,108,751 $ 126,764,856
$ - $ 10,343,197
- 34,479
- 6,532,638
- 16,910,314
- 6,530,707
- 6,530,707
- 61,285
1,108,751 105,136,535
- 3,183,322
- (5,057,307)
1,108,751 103,323,835
$ 1,108,751 $ 126,764,856
(Concluded)
135
This page intentionally left blank.
136
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
Special
Bikeway
Gas Tax
Proposition A
Assessment
-
-
-
676,502
231,158
5,709,962
5,823,952
-
3,536
637
203,363
48,846
-
25,655
-
-
-
3,787
-
-
234,694
5,740,041
6,027,315
725,348
-
5,322,958
-
-
-
-
-
299,347
342,054
754
218,712
-
342,054
5,323,712
218,712
299,347
(107,360)
416,329
5,808,603
426,001
-
108,415
-
17,000
-
(265,469)
(6,074,505)
(3,276)
-
(157,054)
(6,074,505)
13,724
(107,360)
259,275
(265,902)
439,725
106,453
(204,783)
10,263,408
3,878,675
$ (907)
$ 54,492
$ 9,997,506
$ 4,318,400
(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, 2023
Special Revenue Funds
Street
SB 1 Road
Lighting
Measure M
Repair and
District
Local Return
Activity
State Park
REVENUES:
Taxes
$ -
$ -
$ -
$ -
Special assessments
6,410,634
-
-
-
Intergovernmental
-
4,097,322
5,111,045
250,000
Charges for services
-
-
-
-
Investment income (loss)
204,211
42,387
72,739
-
Fines and forfeitures
413,615
-
-
-
Developer fees
-
-
-
-
Other revenue
5,000
-
-
-
Total revenues
7,033,460
4,139,709
5,183,784
250,000
EXPENDITURES:
Current:
General government
2,634,114
-
-
-
Public safety
-
-
-
-
Public works
1,837,380
-
-
-
Community development
-
-
-
-
Neighborhood services
-
-
-
-
Capital outlay
515,063
803,115
5,481,572
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Cost of issuance
-
-
-
-
Total expenditures
4,986,557
803,115
5,481,572
-
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
2,046,903
3,336,594
(297,788)
250,000
OTHER FINANCING SOURCES (USES):
Issuance of debt
-
-
-
-
Issuance premium
-
-
-
-
Transfers in
231,485
-
-
-
Transfers out
(1,091,647)
-
-
-
Total other financing sources (uses)
(860,162)
-
-
-
NET CHANGES IN FUND BALANCES
1,186,741
3,336,594
(297,788)
250,000
FUND BALANCES (DEFICITS):
Beginning of year
15,028,273
6,975,197
5,471,468
(250,000)
End of year
$ 16,215,014
$ 10,311,791
$ 5,173,680
$ -
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
TDA Traffic Safety CDBG AQMD
3,482,906 - 2,138,254 302,074
187,490 - - (993)
- 532,693 - -
14,823
8,614,696
8,629,519
- 938,501 -
- - 13,388
- 1,314,952 14,799
- 2,253,453 28,187
(4,959,123) 532,693 (115,199) 272,894
- (532,693) - -
- (532,693) - -
(4,959,123) - (115,199) 272,894
7,155,186 _
$ 2,196,063 $
-_ 109,337 285,522
$ (5,862) $ 558,416
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
Surface
Transportation BJA Law Supplemental
Stormwater Program Enforcement Law Grant
5,093,471
21,830
29,826
267,057
5,412,184
- 17,159 574,989
- - 5,690
- - 17,159 488,708
4,224,388 - - -
121,255 - - -
4,345,643 - 17,159 488,708
1,066,541 - - 91,971
3,690 - - -
3,690 - - -
1,070,231 - - 91,971
3,957,776 (10,900) 2 345,310
$ 5,028,007 $ (10,900) $ 2 $ 437,281
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year, as restated (Note 20)
End of year
Special Revenue Funds
Public
Library Education and
HOME Facilities Fees Government Proposition C
7,685
45,049
52,734
- $ 446,248 $ -
- - 51010,906
53,764 12,062 176,157
233,619 - -
287,383 458,310 5,187,063
- - 494,593 -
- - - 4,878,673
- - 494,593 4,878,673
52,734 287,383 (36,283) 308,390
- - - (2,462,730)
- - - (2,462,730)
52,734 287,383 (36,283) (2,154,340)
2,695,283 3,986,918 803,812 9,474,863
$ 2,748,017 $ 4,274,301 $ 767,529 $ 7,320,523
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
Measure H Measure R
Homeless Highway
Initiatives Federal Grants Measure R Improvement
444,425 1,584,608 3,622,058 3,328,898
- - 15,415 -
444,425 1,584,608 3,637,473 3,328,898
238,877 4,499 - -
- 1,560,972 511,896 3,856,463
238,877 1,565,471 511,896 3,856,463
205,548 19,137 3,125,577 (527,565)
- (410,704) - -
- (410,704) - -
205,548 (391,567) 3,125,577 (527,565)
(228,322) 656,076 4,235,618 (94,402)
$ (22,774) $ 264,509 $ 7,361,195 $ (621,967)
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
Measure W Tourism
Measure M Measure A Safe Clean Marketing
$ 3,214,928 $ -
527,151 - - -
- - - 993,211
- 65,957 4,542
- - - 634,460
- - 191,630 -
334,664 3,070,001 2,044,655 -
334,664 3,070,001 2,236,285 634,460
192,487 (3,070,001) 1,044,600 363,293
- (194,251)
- (194,251)
192,487 (3,264,252)
- (296,000)
- (296,000)
1,044,600 67,293
(474,809) (1,474) 5,513,314 853,142
$ (282,322) $ (3,265,726) $ 6,557,914 $ 920,435
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
Housing
Miscellaneous Park Successor
OSPD Grants Dedication Agency
3,189,455 - - -
- 1,403,806 - -
12,272 - - -
84,357 - 41,391 9,973
- 69,671 -
1,500 - - -
3,287,584 1,403,806 111,062 9,973
- 226,642 - -
784,552 170,360 - -
1,615,794 1,393,352 434,662 -
2,400,346 1,790,354 434,662 -
887,238 (386,548) (323,600) 9,973
- - - 159,244
(803,606) - - -
(803,606) - - 159,244
83,632 (386,548) (323,600) 169,217
6,835,213 (441,547) 2,077,664 971,293
$ 6,918,845 $ (828,095) $ 1,754,064 $ 1,140,510
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue Funds
Tourism Cooper St VC
Marketing Parking Wastewater
Bureau Areawide CFD 2020-1 Standby District
- 7,828,624 995,475 1,276,387
8,053 - - -
1,016 146,307 - 52,052
- 37,580 - -
- - 122,342 -
9,069 8,012,511 1,117,817 1,328,439
- 5,774,534 - 5,438
9,765 - - -
- 12,716,000 635,405 2,343,577
- 579,473 - -
9,765 19,070,007 635,405 2,349,015
(696) (11,057,496) 482,412 (1,020,576)
- 13,053,760 - -
- (432,385) (1,553) -
- 12,621,375 (1,553) -
(696) 1,563,879 480,859 (1,020,576)
63,789 5,282,780 (101,501) 3,483,190
$ 63,093 $ 6,846,659 $ 379,358 $ 2,462,614
(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, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Special Revenue
Fund Capital Projects Funds
Santa Clarity
Public General PFA
Television Capital Capital Civic
Authority Projects Projects Arts Projects
326,943 - - -
557 - - 4,232
327,500 - 4,232
271,755 - - -
- 2,250,597 10 74,000
72,832 - - -
96 - - -
344,683 2,250,597 10 74,000
(17,183) (2,250,597) (10) (69,768)
- 4,461,165 - -
- 4,461,165 - -
(17,183) 2,210,568 (10) (69,768)
17,280 669,714 _
$ 97 $ 2,880,282 $
10 372,808
$ 303,040
(Continued)
146
City of Santa Clarita
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
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
Public works
Community development
Neighborhood services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCES
FUND BALANCES (DEFICITS):
Beginning of year
End of year
Debt Service Fund
Public Total Nonmajor
Financing Governmental
Authority Funds
$ - $ 3,661,176
- 25,470,548
- 43,987,616
- 1,035,366
2,649 1,475,848
- 1,009,543
- 303,290
- 444,735
2,649 77,388,122
- 9,180,434
- 505,867
- 7,175,161
- 2,052,744
- 21,378,647
- 40,032,184
2,550,000
2,622,832
2,928,979
2,929,075
354,697
354,697
5,833,676
86,231,641
(5,831,027) (8,843,519)
18,815,000
18,815,000
716,027
716,027
5,478,154
23,512,913
(19,163,579)
(31,732,398)
5,845,602
11,311,542
14,575 2,468,023
1,094,176 100,855,812
$ 1,108,751 $ 103,323,835
(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, 2023
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
$ 226,967 $
226,967
226,967
525,482 $ 231,158 $ (294,324)
- 3,536 3,536
525,482 234,694 (290,788)
632,759 342,054 290,705
226,967 632,759 342,054 290,705
$ - $ (107,277) (107,360) $ (83)
106,453
$ (907)
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Investment earnings
Fines and forfeitures
Other revenues
Total revenues
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital outlay
Capital improvement projects
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
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
$ 6,375,199 5,584,141 $ 5,709,962 $ 125,821
- - 637 637
- - 25,655 25,655
- - 3,787 3,787
6,375,199 5,584,141 5,740,041 155,900
2,653,789
2,685,208
2,547,593
137,615
2,780,462
2,780,462
2,719,240
61,222
-
277,855
56,125
221,730
-
16,754
754
16,000
5,434,251
5,760,279
5,323,712
436,567
940,948
(176,138)
416,329
592,467
100,000
407,423
108,415
(299,008)
(272,305)
(265,469)
(265,469)
-
(172,305)
141,954
(157,054)
(299,008)
$ 768,643 $
(34,184)
259,275 $
293,459
(204,783)
$ 54,492
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Intergovernmental
$ 5,405,645
$ 5,405,645
$ 5,823,952 $
418,307
Investment earnings
118,815
118,815
203,363
84,548
Total revenues
5,524,460
5,524,460
6,027,315
502,855
EXPENDITURES:
Capital improvement projects
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
120,000 335,757 218,712 117,045
120,000 335,757 218,712 117,045
(UNDER) EXPENDITURES
5,404,460
5,188,703
5,808,603 619,900
OTHER FINANCING (USES):
Transfers out
(4,573,381)
(6,074,505)
(6,074,505) -
Total other financing (uses)
(4,573,381)
(6,074,505)
(6,074,505) -
NET CHANGE IN FUND BALANCE
$ 831,079 $
(885,802)
(265,902) $ 619,900
FUND BALANCE:
Beginning of year
End of year
10,263,408
$ 9,997,506
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 694,669
$ 694,669
$ 676,502 $
(18,167)
Investment earnings
50,907
50,907
48,846
(2,061)
Total revenues
745,576
745,576
725,348
(20,228)
EXPENDITURES:
Operating
Personnel
62,708
61,913
68,393
(6,480)
Operations and maintenance
347,229
387,229
230,954
156,275
Total expenditures
409,937
449,142
299,347
149,795
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
335,639
296,434
426,001
129,567
OTHER FINANCING SOURCES (USES):
Transfers in
17,000
17,000
17,000
-
Transfers out
(3,389)
(3,276)
(3,276)
-
Total other financing sources (uses)
13,611
13,724
13,724
-
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 349,250 $ 310,158
439,725 $ 129,567
3,878,675
$ 4,318,400
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 6,189,644
$ 6,189,644
$ 6,410,634 $
220,990
Investment earnings
201,032
201,032
204,211
3,179
Fines and forfeitures
510,000
570,000
413,615
(156,385)
Other revenues
2,500
2,500
5,000
2,500
Total revenues
6,903,176
6,963,176
7,033,460
70,284
EXPENDITURES:
Operating:
Personnel
358,607
368,739
336,916
31,823
Operations and maintenance
4,008,519
4,488,519
4,134,578
353,941
Capital improvement projects
335,000
522,179
515,063
7,116
Total expenditures
4,702,126
5,379,437
4,986,557
392,880
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,201,050 1,583,739 2,046,903 463,164
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
231,485 231,485 231,485
(1,092,098) (1,092,098) (1,091,647)
(860,613) (860,613) (860,162)
$ 1,340,437 $ 723,126
451
451
1,186,741 $ 463,615
15,028,273
$ 16,215,014
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, 2023
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
$ 3,811,264 $
3,811,264
4,131,286
3,811,264 $ 4,097,322 $ 286,058
- 42,387 42,387
3,811,264 4,139,709 328,445
6,531,178 803,115 5,728,063
4,131,286
6,531,178
803,115
5,728,063
$ (320,022) $
(2,719,914)
3,336,594 $
6,056,508
6,975,197
$ 10,311,791
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, 2023
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
$ 5,050,659 $
5,050,659
5,596,984
4,906,518 $ 5,111,045 $ 204,527
- 72,739 72,739
4,906,518 5,183,784 277,266
10,438,400 5,481,572 4,956,828
5,596,984
10,438,400
5,481,572
4,956,828
$ (546,325) $
(5,531,882)
(297,788) $
5,234,094
5,471,468
$ 5,173,680
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
NET CHANGE IN FUND BALANCE
- $ 250,000 $ 250,000
- 250,000 250,000
- $ 250,000 250,000
FUND BALANCE:
Beginning of year (250,000)
End of year $ -
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, 2023
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
$ 3,678,764 $
3,678,764
3,378,744
4,758,747 $ 3,482,906 $ (1,275,841)
- 187,490 187,490
4,758,747 3,670,396 (1,088,351)
11,663,424 8,629,519 3,033,905
3,378,744 11,663,424 8,629,519 3,033,905
300,020 (6,904,677) (4,959,123) 1,945,554
- (299,008)
- (299,008)
$ 300,020 $ (7,203,685)
- 299,008
- 299,008
(4,959,123) $ 2,244,562
7,155,186
$ 2,196,063
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Fines and forfeitures $ 550,000 $ 550,000 $ 532,693 $ (17,307)
Total revenues 550,000 550,000 532,693 (17,307)
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) (532,693) 17,307
(550,000) (550,000) (532,693) 17,307
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 1,956,414 $ 2,382,727 $ 2,138,254 $ (244,473)
Total revenues 1,956,414 2,382,727 2,138,254 (244,473)
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
167,791
168,835
176,487
(7,652)
876,775
870,765
762,014
108,751
711,848
1,343,127
1,314,952
28,175
1,756,414
2,382,727
2,253,453
129,274
$ 200,000 $
- (115,199) $ (115,199)
109,337
$ (5,862)
159
City of Santa Clarita
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Air Quality Management District (AQMD) Special Revenue Fund
For the Year Ended June 30, 2023
Original
Final
Variance with
Budget
Budget
Actual Final Budget
REVENUES:
Intergovernmental
$ 289,000
$ 289,000
$ 302,074 $ 13,074
Investment earnings
3,685
3,685
(993) (4,678)
Total revenues
292,685
292,685
301,081 8,396
EXPENDITURES:
Operating:
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
21,257 21,257 13,388 7,869
16,374 14,799 1,575
21,257 37,631 28,187 9,444
$ 271,428 $ 255,054 272,894 $ 17,840
285,522
$ 558,416
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 4,057,862
$ 5,057,862
$ 5,093,471 $
35,609
Charges for services
19,743
19,743
21,830
2,087
Investment earnings
44,864
44,864
29,826
(15,038)
Other revenues
259,440
259,440
267,057
7,617
Total revenues
4,381,909
5,381,909
5,412,184
30,275
EXPENDITURES:
Operating:
Personnel
1,478,854
1,494,122
1,494,122
-
Operations and maintenance
3,062,024
3,458,345
2,730,266
728,079
Capital improvement projects
350,000
472,856
121,255
351,601
Total expenditures
4,890,878
5,425,323
4,345,643
1,079,680
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (508,969) (43,414) 1,066,541 1,109,955
OTHER FINANCING SOURCES:
Transfers in
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
3,690 3,690 3,690
3,690 3,690 3,690
$ (505,279) $ (39,724)
1,070,231 $ 1,109,955
3,957,776
$ 5,028,007
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, 2023
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 $ 1,301,580
1,301,580 1,301,580
1,301,580 1,301,580
1,301,580 1,301,580
- $ (1,301,580)
- (1,301,580)
- 1,301,580
- 1,301,580
(10,900)
$ (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, 2023
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
- $ 24,062 $ 17,159 $ (6,903)
- 24,062 17,159 (6,903)
- 25,984 17,159 8,825
- 25,984 17,159 8,825
- $ (1,922) - $ 1,922
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, 2023
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
$ 362,000 $
362,000
362,000 $ 574,989 $ 212,989
- 5,690 5,690
362,000 580,679 218,679
516,514
516,514
488,708
27,806
516,514
516,514
488,708
27,806
$ (154,514) $
(154,514)
91,971 $
246,485
345,310
$ 437,281
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Other revenue
Total revenues
FUND BALANCE:
Beginning of year
End of year
$ 4,692 $ 4,692
4,692 4,692
$ 4,692 $ 4,692
$ 7,685 $ 2,993
45,049 45,049
52,734 48,042
52,734 $ 48,042
2,695,283
$ 2,748,017
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Investment earnings
$ 53,268
$ 53,268
$ 53,764 $
496
Developer fees
200,000
200,000
233,619
33,619
Total revenues
253,268
253,268
287,383
34,115
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 253,268 $ 253,268
287,383 $ 34,115
3,986,918
$ 4,274,301
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes $ 430,000 $ 430,000 $ 446,248
Investment earnings 11,301 11,301 12,062
Total revenues 441,301 441,301 458,310
EXPENDITURES:
Operating:
Operations and maintenance
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 16,248
761
17,009
217,663 512,964 474,094 38,870
12,000 20,499 20,499 -
229,663 533,463 494,593 38,870
$ 211,638 $ (92,162) (36,283) $ 55,879
803,812
$ 767,529
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, 2023
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
$ 5,422,714 $
5,422,714
6,750,000
5,635,622 $ 5,010,906 $ (624,716)
- 176,157 176,157
5,635,622 5,187,063 (448,559)
12,878,788 4,878,673 8,000,115
6,750,000 12,878,788 4,878,673 8,000,115
(1,327,286) (7,243,166) 308,390 7,551,556
(2,462,730) (2,462,730) (2,462,730) -
(2,462,730) (2,462,730) (2,462,730) -
$ (3,790,016) $ (9,705,896) (2,154,340) $ 7,551,556
9,474,863
$ 7,320,523
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 38,782 $ 467,199 $ 444,425 $ (22,774)
Total revenues 38,782 467,199 444,425 (22,774)
EXPENDITURES:
Operating:
Personnel 45,091 18,314 18,314 -
Operations and maintenance - 220,563 220,563 -
Total expenditures 45,091 238,877 238,877 -
NET CHANGE IN FUND BALANCE $ (6,309) $ 228,322 205,548 $ (22,774)
FUND BALANCE:
Beginning of year (228,322)
End of year $ (22,774)
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
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
$ 1,315,596 $ 3,509,181 $ 1,584,608 $ (1,924,573)
1,315,596 3,509,181 1,584,608 (1,924,573)
- 4,500 4,500 -
1,315,596 3,479,967 1,560,971 1,918,996
1,315,596 3,484,467 1,565,471 1,918,996
24,714
19,137 (5,577)
- (410,704) (410,704)
$ - $ (385,990)
(391,567) $ (5,577)
FUND BALANCE:
Beginning of year 656,076
End of year $ 264,509
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, 2023
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
$ 3,362,880 $
3,362,880
3,362,880 $ 3,622,058 $ 259,178
- 15,415 15,415
3,362,880 3,637,473 274,593
4,921,021
5,392,117
511,896
4,880,221
4,921,021
5,392,117
511,896
4,880,221
$ (1,558,141) $
(2,029,237)
3,125,577 $
5,154,814
4,235,618
$ 7,361,195
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 20,096,000 $ 4,330,910 $ 3,328,898 $ (1,002,012)
Total revenues 20,096,000 4,330,910 3,328,898 (1,002,012)
EXPENDITURES:
Capital improvement projects 20,096,000 24,295,123 3,856,463 20,438,660
Total expenditures 20,096,000 24,295,123 3,856,463 20,438,660
NET CHANGE IN FUND BALANCE $ - $ (19,964,213) (527,565) $ 19,436,648
FUND BALANCE:
Beginning of year (94,402)
End of year $ (621,967)
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 1,762,082 $ 2,250,089 $ 527,151 $ (1,722,938)
Total revenues 1,762,082 2,250,089 527,151 (1,722,938)
EXPENDITURES:
Capital improvement projects 1,762,082 1,747,780 334,664 1,413,116
Total expenditures 1,762,082 1,747,780 334,664 1,413,116
NET CHANGE IN FUND BALANCE $ - $ 502,309 192,487 $ (309,822)
FUND BALANCE:
Beginning of year (474,809)
End of year $ (282,322)
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental
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
$ 194,251 $ 3,266,742
194,251 3,266,742
$ (3,266,742)
(3,266,742)
- 3,071,777 3,070,001 1,776
- 3,071,777 3,070,001 1,776
194,251 194,965 (3,070,001) (3,264,966)
(194,251) (194,251) (194,251) -
(194,251) (194,251) (194,251) -
$ - $ 714 (3,264,252) $ (3,264,966)
(1,474)
$ (3,265,726)
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Taxes
$ 3,211,394
$ 3,211,394
$ 3,214,928 $
3,534
Investment earnings
25,707
25,707
65,957
40,250
Total revenues
3,237,101
3,237,101
3,280,885
43,784
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
145,260
153,414
153,938
(524)
36,692
39,692
37,692
2,000
4,782,000
6,681,624
2,044,655
4,636,969
4,963,952
6,874,730
2,236,285
4,638,445
$ (1,726,851) $ (3,637,629)
1,044,600 $ 4,682,229
5,513,314
$ 6,557,914
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Charges for services
$ 750,000
$ 900,000
$ 993,211 $
93,211
Investment earnings
7,062
7,062
4,542
(2,520)
Total revenues
757,062
907,062
997,753
90,691
EXPENDITURES:
Operating:
Personnel
35,056
55,242
55,117
125
Operations and maintenance
611,688
591,502
579,343
12,159
Total expenditures
646,744
646,744
634,460
12,284
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 110,318 260,318 363,293 102,975
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
(296,000) (296,000) (296,000)
$ (185,682) $ (35,682)
67,293 $ 102,975
853,142
$ 920,435
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 3,114,941
$ 3,114,941
$ 3,189,455 $
74,514
Charges for services
85,627
85,627
12,272
(73,355)
Investment earnings
96,674
96,674
84,357
(12,317)
Other revenues
-
-
1,500
1,500
Total revenues
3,297,242
3,297,242
3,287,584
(9,658)
EXPENDITURES:
Operating:
Personnel
577,138
434,967
394,744
40,223
Operations and maintenance
425,216
508,216
389,808
118,408
Capital outlay
94,445
1,710,837
1,615,794
95,043
Total expenditures
1,096,799
2,654,020
2,400,346
253,674
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,200,443 643,222 887,238 244,016
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
(803,606) (803,606) (803,606)
(803,606) (803,606) (803,606)
$ 1,396,837 $ (160,384)
83,632 $ 244,016
6,835,213
$ 6,918,845
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental $ 108,186 $ 2,972,666 $ 1,403,806 $ (1,568,860)
Total revenues 108,186 2,972,666 1,403,806 (1,568,860)
EXPENDITURES:
Operating:
Personnel
Operations and maintenance
Capital improvement projects
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
- 75,710
17,121
58,589
71,444 941,609
379,648
561,961
- 1,410,740
1,393,585
17,155
71,444 2,428,059
1,790,354
637,705
36,742 544,607
(386,548)
(931,155)
(441,547)
$ (828,095)
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, 2023
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
$ 8,818 $
8,818
1,386,000
8,818 $ 41,391 $ 32,573
- 69,671 69,671
8,818 111,062 102,244
1,605,111 434,662 1,170,449
1,386,000
1,605,111
434,662
1,170,449
$ (1,377,182) $
(1,596,293)
(323,600) $
1,272,693
2,077,664
$ 1,754,064
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Total revenues
OTHER FINANCING SOURCES:
Transfers in
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
159,646
159,646
$ 159,646
- $ 9,973 $
9,973
- 9,973
9,973
- 159,244
159,244
- 159,244
159,244
- 169,217 $
169,217
971,293
$ 1,140,510
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, 2023
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 $ 8,053 $ 553
- 1,016 1,016
7,500 9,069 1,569
8,568
8,568
9,765
(1,197)
8,568
8,568
9,765
(1,197)
$ (1,068) $
(1,068)
(696) $
372
63,789
$ 63,093
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, 2023
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
7,719,409
64,993
7,719,409 $ 7,828,624 $ 109,215
64,993 146,307 81,314
- 37,580 37,580
7,784,402 7,784,402
7,549,822
6,232,971
13,057,296
13,806,566
184,310
476,785
686,032
687,462
21,477,460
21,203,784
8,012,511 228,109
5,833,259
399,712
12,657,276
1,149,290
329,501
147,284
249,971
437,491
19,070,007
2,133,777
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (13,693,058) (13,419,382) (11,057,496) 2,361,886
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
14,328,172 13,910,505
(447,279) (432,385)
13,880,893 13,478,120
$ 187,835 $ 58,738
13,053,760 (856,745)
(432,385) -
12,621,375 (856,745)
1,563,879 $ 1,505,141
FUND BALANCE:
Beginning of year 5,282,780
End of year $ 6,846,659
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Special assessments
Other revenues
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
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
304,543 $ 995,525 $ 995,475
- 122,342 122,342
3 04, 543 1,117, 867 1,117, 817
464,202 635,823 635,405
464,202 635,823 635,405
(159,659)
482,044 482,412
$ (50)
(50)
418
418
368
- (30,652) (1,553) 29,099
- (30,652) (1,553) 29,099
$ (159,659) $ 451,392 480,859 $ 29,467
(101,501)
$ 379,358
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
REVENUES:
Special assessments
$ 1,094,755
$ 1,654,693
$ 1,276,387 $
(378,306)
Investment earnings
55,161
55,161
52,052
(3,109)
Total revenues
1,149,916
1,709,854
1,328,439
(381,415)
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
30,387 3,121,231 2,349,015 772,216
30,387 3,121,231 2,349,015 772,216
$ 1,119,529 $ (1,411,377)
(1,020,576) $ 390,801
3,483,190
$ 2,462,614
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, 2023
Original
Final
Variance with
Budget
Budget
Actual
Final Budget
EXPENDITURES:
Capital improvement projects
$ 4,131,143
$ 5,500,857 $
2,250,597
$ 3,250,260
Total expenditures
4,131,143
5,500,857
2,250,597
3,250,260
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(4,131,143)
(5,500,857)
(2,250,597)
3,250,260
OTHER FINANCING SOURCES:
Transfers in
4,131,143
4,596,144
4,461,165
(134,979)
Total other financing sources
4,131,143
4,596,144
4,461,165
(134,979)
NET CHANGE IN FUND BALANCE
$ -
$ (904,713)
2,210,568
$ 3,115,281
FUND BALANCE:
Beginning of year
End of year
669,714
$ 2,880,282
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Total revenues
$ 4,232 $ 4,232
4,232 4,232
EXPENDITURES:
Capital improvement projects 338,279 368,779 74,000 294,779
Total expenditures 338,279 368,779 74,000 294,779
NET CHANGE IN FUND BALANCE $ (338,279) $ (368,779) (69,768) $ 299,011
FUND BALANCE:
Beginning of year 372,808
End of year $ 303,040
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, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Investment earnings
Total revenues
EXPENDITURES:
Operating:
Operations and maintenance
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of debt
Issuance premium
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ 2,649 $ 2,649
2,649 2,649
4,497,621
5,482,057
5,833,676
(351,619)
4,497,621
5,482,057
5,833,676
(351,619)
(4,497,621)
(5,482,057)
(5,831,027)
(348,970)
-
-
18,815,000
18,815,000
-
-
716,027
716,027
4,497,621
5,482,057
5,478,154
(3,903)
-
(19,163,579)
(19,163,579)
-
4,497,621
(13,681,522)
5,845,602
19,527,124
$ - $
(19,163,579)
14,575 $
19,178,154
1,094,176
$ 1,108,751
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, 2023
ASSETS
Current assets:
Cash and investments
Accounts receivable
Interest receivable
Total current assets
Noncurrent assets:
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
Net pension liabilities
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
$ 9,609,194 $
3,187,698 $
5,038,912
$ 17,835,804
1,353
-
-
1,353
35,329
12,018
18,998
66,345
9,645,876
3,199,716
5,057,910
17,903,502
15,376
-
-
15,376
-
134,613
1,569,006
1,703,619
15,376
13 4, 613
1,569,006
1,718,995
9,661,252
3,334,329
6,626,916
19,622,497
113,488
-
-
113,488
25,656
-
-
25,656
139,144
-
-
139,144
87,661
1,168
1,270,000
1,358,829
15,843
6,170,596
142,459
1,043 - 88,704
- - 1,168
- - 1,270,000
1,043 - 1,359,872
7,244 -
- 15,843
- 6,170,596
- 142,459
- 7,244
72,683 - - 72,683
- 134,613 1,569,006 1,703,619
2,039,986 3,198,673 5,057,910 10,296,569
$ 2,039,986 $ 3,333,286 $ 6,626,916 $ 12,000,188
191
City of Santa Clarita
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023
Self Computer Vehicle
Insurance Replacement Replacement Total
OPERATING REVENUES:
Charges for services
Other revenue
Total operating revenues
OPERATING EXPENSES:
Administration and personnel services
Services and supplies
Depreciation expense
Total operating expenses
I13SV911ws1.7r0W[!1WrocelUIy
NONOPERATING REVENUE (EXPENSES):
Investment income
Total nonoperating expenses
CjI/W"Do WKID18all lllWei
NET POSITION:
Beginning of the year
End of the year
$ 4,208,708 $ 956,625 $ 672,617 $ 5,837,950
8 - 60,743 60,751
41208,716 956,625 733,360 5,898,701
324,384 447 - 324,831
4,111,769
440,078
290,257
4,842,104
96,947
516,547
443,103
1,056,597
74,177
30,727
62,748
167,652
74,177
30,727
62,748
167,652
171,124 547,274 505,851 1,224,249
$ 2,039,986 $ 3,333,286 $ 6,626,916 $ 12,000,188
192
City of Santa Clarita
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
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 income received
Net cash provided by investing activities
Net increase 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 income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Change in assets and liabilities:
(Increase) decrease in accounts receivable
(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 operating activities
Self
Computer
Vehicle
Insurance
Replacement
Replacement
Total
$ 4,207,363 $
956,625 $
733,360 $
5,897,348
(325,524)
(393,198)
-
(718,722)
(344,414)
-
-
(344,414)
(992,149)
-
-
(992,149)
2,545,276
563,427
733,360
3,842,063
-
(33,415)
(404,298)
(437,713)
-
(33,415)
(404,298)
(437,713)
53,218
23,552
52,314
129,084
53,218
23,552
52,314
129,084
2,598,494
553,564
381,376
3,533,434
7,010,700
2,634,134
4,657,536
14,302,370
$ 9,609,194 $
3,187,698 $
5,038,912 $
17,835,804
$ 96,947 $
516,547 $
443,103 $
1,056,597
-
72,343
290,257
362,600
(1,353)
-
-
(1,353)
17,564
-
-
17,564
(9,163)
-
-
(9,163)
144,049
-
-
144,049
(70,142)
-
-
(70,142)
6,307
-
-
6,307
(342,465)
(25,463)
-
(367,928)
(16,159)
-
-
(16,159)
2,795,236
-
-
2,795,236
(74,642)
-
-
(74,642)
(903)
-
-
(903)
2,448,329
46,880
290,257
2,785,466
$ 2,545,276 $
563,427 $
733,360 $
3,842,063
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, 2023
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
$ 277,507 $ 161,615 $ 1,158,803
1,046 609 4,363
412 183 -
53,619 61,559 1,650,229
332,584 223,966 2,813,395
1,145 1,046 278
1,145 1,046 278
$ 331,439 $ 222,920 $ 2,813,117
196
City of Santa Clarita
Combining Statement of Fiduciary Net Position (Continued)
Custodial Funds
June 30, 2023
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
$ 484,765 $ 15,305 $ 2,097,995
1,828 - 7,846
- - 595
1,106,598 - 2,872,005
1,593,191 15,305 4,978,441
411 - 2,880
411 - 2,880
$ 1,592,780 $ 15,305 $ 4,975,561
197
City of Santa Clarita
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the Year Ended June 30, 2023
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
End of year
Assessment
District
No.92-2
Assessment
District
No.99-1
Community
Facilities
District
No 2002-1
$ 84,430 $
77,425 $
1,371,634
3,113
3,450
(6,273)
87,543
80,875
1,365,361
6,790
5,751
2,688
51,336
55,328
1,310,500
10,085
9,990
10,087
68,211
71,069
1,323,275
19,332
9,806
42,086
312,107
213,114
2,771,031
$ 331,439 $
222,920 $
2,813,117
198
City of Santa Clarita
Combining Statement of Changes in Fiduciary Net Position (Continued)
Custodial Funds
For the Year Ended June 30, 2023
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
$ 864,993
$ - $
2,398,482
(2,746)
8
(2,448)
862,247
8
2,396,034
32,451
700
48,380
812,119
-
2,229,283
-
-
30,162
844,570
700
2,307,825
17,677
(692)
88,209
1,575,103
15,997
4,887,352
$ 1,592,780
$ 15,305 $
4,975,561
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 - 230
232 - 238
239
240 - 245
203
City of Santa Clarita
Governmental Activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities
net position
Business -Type Activities
Net investment in capital assets
Unrestricted
Total business -type activities
net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government
net position
Net Position by Component (1)
Last Ten Fiscal Years Ended June 30, 2023
(accrual basis of accounting)
FISCAL YEAR
22-23 21-22 20-21 19-20 18-19
$ 1,124,934,271 $ 1,080,862,181 $ 1,032,579,113 $ 984,052,712 $ 920,036,752
158,032,140 152,349,197 147,556,902 146,874,629 119,375,331
188,013,004 161,500,702 126,571,370 80,879,095 122,991,202
$ 1,470,979,415 $ 1,394,712,080 $ 1,306,707,385 $ 1,211,806,436 $ 1,162,403,285
$ 96,692,691 $ 95,597,321 $ 88,023,510 $ 80,308,956 $ 83,906,440
11,332,040 8,917,312 6,895,650 (1,465,963) 269,116
$ 108,024,731 $ 104,514,633 $ 94,919,160 $ 78,842,993 $ 84,175,556
$ 1,221,626,962 $ 1,176,459,502 $ 1,120,602,623 $ 1,064,361,668 $ 1,003,943,192
158,032,140 152,349,197 147,556,902 146,874,629 119,375,331
199,345,044 170,418,014 133,467,020 79,413,132 123,260,318
$ 1,579,004,146 $ 1,499,226,713 $ 1,401,626,545 $ 1,290,649,429 $ 1,246,578,841
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, 2023
(accrual basis of accounting)
FISCAL YEAR
17-18
16-17
15-16
14-15
13-14
Governmental Activities
Net investment in capital assets
$ 895,056,642
$ 867,144,998
$ 810,324,041 $
818,817,043 $
799,926,613
Total restricted
113,286,625
87,272,723
70,773,322
73,541,304
71,643,713
Unrestricted
85,155,060
105,514,664
115,356,272
79,211,600
52,551,033
Total governmental activities
net position
$ 1,093,498,327
$ 1,059,932,385
$ 996,453,635 $
971,569,947 $
924,121,359
Business -Type Activities
Net investment in capital assets $ 79,199,471 $ 79,589,102 $ 76,687,260 $ 78,495,871 $ 83,296,545
Unrestricted (888,318) (1,202,362) 3,101,763 2,766,972 2,250,491
Total business -type activities
net position $ 78,311,153 $ 78,386,740 $ 79,789,023 $ 81,262,843 $ 85,547,036
Primary Government
Net investment in capital assets
$ 974,256,113
$ 946,734,100
$ 887,011,301
$ 897,312,914
$ 883,223,158
Restricted
113,286,625
87,272,723
70,773,322
73,541,304
71,643,713
Unrestricted
84,266,742
104,312,302
118,458,035
81,978,572
54,801,524
Total primary government
net position
$ 1,171,809,480
$ 1,138,319,125
$ 1,076,242,658
$ 1,052,832,790
$ 1,009,668,395
205
City of Santa Clarita
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2023
(accrual basis of accounting)
FISCAL YEAR
22-23
21-22
20-21
19-20
18-19
Expenses
Governmental Activities
General government
$ 49,428,154
$ 14,728,358
$ 51,594,712
$ 54,710,526
$ 62,309,457
Public safety
33,228,916
30,936,129
35,128,997
29,907,832
27,757,002
Public works
18,720,585
30,493,258
17,239,899
33,663,857
20,772,164
Recreation and community service
20,430,503
23,989,989
15,107,049
16,047,345
17,585,165
Community development
19,948,687
12,203,347
11,435,676
8,942,864
7,214,786
Neighborhood Services
23,816,831
42,179,104
13,865,065
12,862,529
12,622,824
Unallocated infrastructure depreciation
22,077,333
21,432,943
21,543,801
21,043,711
20,630,522
Interest on long-term debt
3,912,327
2,743,559
3,742,582
3,549,649
2,589,767
Total governmental activities expenses
191,563,336
178,706,687
169,657,781
180,728,313
171,481,687
Business -Type Activities
Transit 35,506,571 31,342,873 27,898,955 31,060,676 32,065,240
Total business -type activities expenses 35,506,571 31,342,873 27,898,955 31,060,676 32,065,240
Total primary government expenses $ 227,069,907 $ 210,049,560 $ 197,556,736 $ 211,788,989 $ 203,546,927
Program Revenues
Governmental Activities
Charges for services:
General government
$ 41,180,442
$ 916,671
$ 9,254,707
$ 8,215,989
$ 8,547,181
Public safety
2,053,902
1,658,867
1,303,759
1,484,005
1,937,603
Public works
11,412,044
11,352,114
3,627,549
12,201,244
14,669,328
Recreation and community service
7,366,425
21,724,121
16,419,310
3,635,790
6,344,242
Community development
15,864,222
3,073,196
1,899,854
1,552,869
1,704,920
Neighborhood Services
9,429,835
33,555,637
31,252,912
30,575,191
29,338,661
Operating grants and contributions
35,092,994
38,093,703
44,524,768
22,066,816
13,574,920
Capital grants and contributions
35,865,511
68,626,540
42,849,916
41,462,296
59,565,349
Total governmental activities program revenues
158,265,375
179,000,849
151,132,775
121,194,200
135,682,204
Business -Type Activities
Charges for services:
Transit
6,499,657
5,936,598
5,799,364
6,785,178
7,662,186
Operating grants and contributions
15,173,066
12,087,130
29,444,844
13,405,112
15,292,991
Capital grants and contributions
8,107,402
13,402,891
9,036,527
5,701,142
10,434,282
Total business -type activities program revenues
29,780,125
31,426,619
44,280,735
25,891,432
33,389,459
Total primary government revenues $ 188,045,500 $ 210,427,468 $ 195,413,510 $ 147,085,632 $ 169,071,663
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, 2023
(accrual basis of accounting)
FISCAL YEAR
17-18
16-17
15-16
14-15
13-14
Expenses
Governmental Activities
General government
$ 53,928,438
$ 44,390,099
$ 39,155,006
$ 46,224,813
$ 41,807,284
Public safety
27,232,724
25,231,712
23,778,931
22,235,368
22,187,434
Public works
14,771,925
23,563,825
38,223,035
36,103,144
26,183,862
Recreation and community service
23,472,469
16,224,154
15,594,958
22,619,337
22,550,301
Community development
6,957,438
7,057,301
10,505,906
5,720,237
6,193,101
Neighborhood Services
1,082,836
1,815,637
-
-
-
Unallocated infrastructure depreciation
19,259,333
18,833,113
18,342,933
18,072,657
17,561,539
Interest on long-term debt
1,638,960
1,378,888
2,194,181
1,827,094
1,872,832
Total governmental activities expenses
148,344,123
138,494,729
147,794,950
152,802,650
138,356,353
Business -Type Activities
Transit 28,309,870 29,858,499 28,127,407 28,062,668 26,819,161
Total business -type activities expenses 28,309,870 29,858,499 28,127,407 28,062,668 26,819,161
Total primary government expenses $ 176,653,993 $ 168,353,228 $ 175,922,357 $ 180,865,318 $ 165,175,514
Program Revenues
Governmental Activities
Charges for services:
General government
$ 10,007,154
$ 6,740,507
$ 22,914,059
$ 26,783,616 $
31,970,148
Public safety
1,429,900
1,231,974
1,162,551
1,605,059
1,847,403
Public works
15,792,197
11,549,806
16,407,616
13,056,586
12,463,046
Recreation and community service
8,306,076
6,191,011
8,142,336
4,525,662
4,390,686
Community development
1,901,897
1,906,079
1,843,296
1,774,482
1,961,243
Neighborhood Services
27,090,508
25,044,704
-
-
-
Operating grants and contributions
9,259,079
5,977,971
7,687,397
12,561,608
19,421,199
Capital grants and contributions
31,807,581
55,220,052
23,629,474
30,107,231
22,530,841
Total governmental activities program revenues
105,594,392
113,862,104
81,786,729
90,414,244
94,584,566
Business -Type Activities
Charges for services:
Transit
6,987,488
7,231,136
7,546,433
6,779,579
7,587,497
Operating grants and contributions
10,226,946
8,459,236
9,153,499
8,228,348
8,984,127
Capital grants and contributions
3,102,269
9,138,643
3,504,305
1,423,440
10,804,747
Total business -type activities program revenues
20,316,703
24,829,015
20,204,237
16,431,367
27,376,371
Total primary government revenues $ 125,911,095 $ 138,691,119 $ 101,990,966 $ 106,845,611 $ 121,960,937
207
City of Santa Clarita
Changes in Net Position
Last Ten Fiscal Years Ended June 30, 2023
(accrual basis of accounting)
Net Revenues (expenses):
Governmental activities
Business -type activities
Total net revenues (expenses)
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes
Property taxes
Franchise taxes
Real property transfer taxes
Transient occupancy taxes
Unrestricted revenue in lieu of motor vehicle taxes
Unrestricted investment earnings
Miscellaneous revenue
Gain on sale of capital asset
Transfers
Reversal of Allowance for Notes to RDA Successor Agency
Capital Contributions
Total governmental activities
Business -type activities
Unrestricted investment earnings
Gain on sale of capital asset
Miscellaneous revenue
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
FISCAL YEAR
22-23 21-22 20-21 19-20 18-19
$ (33,297,961) $
294,162
$ (18,525,006)
$ (59,534,113)
$ (35,799,482)
(5,726,446)
83,746
16,381,780
(5,169,244)
1,324,219
$ (39,024,407) $
377,908
$ (2,143,226)
$ (64,703,357)
$ (34,475,263)
$ 48,507,761 $ 49,476,922 $ 43,197,889 $ 36,621,145 $ 38,546,183
45,187,496
42,113,398
52,981,738
46,420,350
43,761,925
10,688,049
10,883,225
9,493,742
8,604,265
8,369,481
1,307,533
2,569,074
2,010,033
1,418,026
1,227,947
5,296,490
4,874,977
2,275,383
2,726,113
3,352,776
213,520
349,171
173,463
207,931
147,752
3,407,265
(4,773,346)
634,957
12,311,467
12,528,843
3,333,538
4,993,518
2,311,282
472,227
1,206,740
-
-
-
2,050
(1,600)
(8,384,754)
(8,097,818)
347,468
153,690
(4,435,608)
109,556,898
102,389,121
113,425,955
108,937,264
104,704,439
13,527
(185,016)
41,855
(9,629)
32,613
35,000
36,900
-
-
71,963
803,263
1,562,025
-
-
-
8,384,754
8,097,818
(347,468)
(153,690)
4,435,608
9,236,544
9,511,727
(305,613)
(163,319)
4,540,184
118,793,442
111,900,848
113,120,342
108,773,945
109,244,623
76,258,937 102,683,283 94,900,949 49,403,151 68,904,957
3,510,098 9,595,473 16,076,167 (5,332,563) 5,864,403
$ 79,769,035 $ 112,278,756 $ 110,977,116 $ 44,070,588 $ 74,769,360
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, 2023
(accrual basis of accounting)
Net Revenues (expenses):
Governmental activities
Business -type activities
Total net revenues (expenses)
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes
Property taxes
Franchise taxes
Real property transfer taxes
Transient occupancy taxes
Unrestricted revenue in lieu of motor vehicle taxes
Unrestricted investment earnings
Miscellaneous revenue
Gain on sale of capital asset
Transfers
Reversal of Allowance for Notes to RDA Successor Agency
Capital Contributions
Total governmental activities
Business -type activities
Unrestricted investment earnings
Gain on sale of capital asset
Miscellaneous revenue
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
FISCAL YEAR
17-18 16-17 15-16 14-15 13-14
$ (42,749,731) $ (24,060,399) $ (66,008,221) $ (62,388,406) $ (43,771,787)
(7,993,167) (5,029,484) (7,923,170) (11,631,301) 557,210
$ (50,742,898) $ (29,089,883) $ (73,931,391) $ (74,019,707) $ (43,214,577)
$ 37,252,523 $ 36,147,727 $ 37,807,385 $ 34,355,412 $ 33,480,522
42,284,749
39,924,749
40,072,597
38,556,890
35,652,080
8,523,791
8,208,347
8,392,789
8,512,818
7,796,070
1,320,018
1,275,363
1,383,473
1,169,780
947,470
3,489,281
3,639,264
3,813,437
3,124,904
2,781,527
162,103
144,665
129,053
85,703
86,531
591,177
1,052,254
4,142,959
2,240,594
2,090,322
2,661,916
737,513
1,080,771
678,937
781,986
10,935
11,711
459,709
27,410
18,174
(5,924,278)
(3,602,443)
(6,390,264)
(7,329,516)
(5,692,032)
-
-
12,633,832
-
-
-
-
15,780,230
-
90,372,215
87,539,150
90,891,909
109,836,994
77,942,650
(1,242) (28,735) 59,086 17,592 4,791
20,238 53,223 - - -
5,924,278 3,602,443 6,390,264 7,329,516 5,692,032
5,943,274 3,626,931 6,449,350 7,347,108 5,696,823
96,315,489 91,166,081 97,341,259 117,184,102 83,639,473
47,622,484 63,478,751 24,883,688 47,448,588 34,170,863
(2,049,893) (1,402,553) (1,473,820) (4,284,193) 6,254,033
$ 45,572,591 $ 62,076,198 $ 23,409,868 $ 43,164,395 $ 40,424,896
Source: City of Santa Clarita, Administrative Services Department - Finance Division
209
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2023
(modified accrual basis of accounting)
FISCAL YEAR
22-23 21-22 20-21 19-20 18-19
$ 14,295,430 $
15,030,511 $
7,474,892 $
9,810,973 $
12,050,141
23,514,275
4,655,940
9,644,574
23,063,669
-
166,255,745
146,922,006
110,906,093
97,293,470
120,981,128
63,696,700
62,141,361
59,968,580
60,273,125
58,930,970
$ 267,762,150 $
228,749,818 $
187,994,139 $
190,441,237 $
191,962,239
$ 74,967 $
344,869 $
491,504 $
575,276 $
772,627
155,269,550
147,460,244
123,614,422
112,631,199
108,394,699
1,584
783
832
9,277
13,460
3,222,874
1,081,539
755,174
791,914
1,040,181
(5,059,903)
(1,820,499)
(869,803)
(3,127,904)
(3,266,496)
$ 153,509,072 $
147,066,936 $
123,992,129 $
110,879,762 $
106,954,471
All Other
Governmental Funds
36%
FUND BALANCES
Fiscal Year Ended June 30, 2023
4000
Source: City of Santa Clarita, Administrative Services Department - Finance Division
General Fund
64%
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
180
160
140
120
100
0
-_ 80
= 60
40
20
0
City of Santa Clarita
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years Ended June 30, 2023
(modified accrual basis of accounting)
FISCAL YEAR
17-18 16-17 15-16 14-15 13-14
$ 12,390,885 $
15,742,945 $
11,108,252 $
11,024,338 $
11,519,143
88,674,761
79,367,084
79,367,084
55,336,807
51,718,096
47,116,235
53,905,237
50,669,580
50,141,486
45,654,640
$ 148,181,881 $
149,015,266 $
141,144,916 $
116,502,631 $
108,891,879
$ 5,882 $
976,841 $
1,134,103 $
1,455,067 $
606,996
113,286,625
86,664,536
86,240,243
85,763,293
84,268,720
15,008
14,000
14,000
14,000
612,829
1,117,165
2,151,360
1,881,728
1,843,822
3,412,127
(6,786,531)
(5,897,790)
(6,975,198)
(8,633,303)
(9,300,647)
$ 107,638,149 $
83,908,947 $
82,294,876 $
80,442,879 $
79,600,025
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
73-14 14-10 10-1b lb-l/ l/-It$ "Its-"lu ly-ZU ZU-Z"I Z"I-ZZ ZZ-Z3
Fiscal Year
Source: City of Santa Clarita, Administrative Services Department - Finance Division
211
City of Santa Clarita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2023
(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
Recreation and community service
Public works
Community development
Neighborhood services
Administration and personnel services
Capital outlay
Debt service:
Principal
Interest
Cost of issuance
Redemption of district credits
Total Expenditures
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses)
Isuance of debt and 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
Fund balances - End of Year
FISCAL YEAR
22-23 21-22 20-21 19-20 18-19
$ 124,245,820 $ 123,417,159 $ 110,132,248 $ 95,997,830 $ 95,406,064
40,833,265
36,374,012
35,634,980
-
-
13,073,140
9,724,390
11,498,980
7,538,878
9,951,586
3,048,765
4,674,125
11,094,312
2,917,250
6,458,182
5,858,733
(7,617,836)
664,575
11,777,753
12,045,344
55,093,351
70,217,168
43,058,715
33,746,890
36,086,192
2,284,721
1,942,026
1,702,622
1,736,201
1,851,190
13,467,246
12,681,139
6,949,375
42,052,534
42,117,270
2,596,935
5,639,891
13,984,800
3,508,593
1,677,809
260,501,976
257,052,074
234,720,607
199,275,929
205,593,637
47,579,510
15,656,486
46,060,921
50,929,600
59,638,451
32,234,273
30,189,992
35,570,621
30,511,022
28,342,578
15,941,571
18,894,253
14,917,730
13,846,768
15,450,815
16,754,090
23,570,003
90,316,078
72,953,711
51,343,366
19,466,417
13,146,687
11,556,377
8,709,340
7,344,064
24,377,481
43,730,242
13,885,978
13,100,419
12,823,905
-
-
67,889
-
-
62,208,791
54,121,315
20,702,698
4,213,593
5,053,670
3,680,150
2,363,121
2,315,371
2,482,109
2,833,260
3,596,800
2,857,672
3,363,625
2,901,257
2,520,153
354,697
-
-
-
-
-
-
278,843
-
-
226,193,780
204,529,771
239,036,131
199,647,819
185,350,262
34,308,196 52,522,303
19,531,027 -
44,831,118 19,599,811
(53,215,872) (27,697,629)
(4,315,524)
(371,890) 20,243,375
14,270,000
- 25,850,000
225,409
- 1,463,083
164,970
- -
43,175,925
20,787,975 56,075,180
(42,855,511)
(18,011,796) (60,534,955)
11,146,273 (8,097,818) 14,980,793 2,776,179 22,853,308
45,454,469 44,424,485 10,665,269 2,404,289 43,096,683
375,816,753 331,392,268 301,320,999 255,820,027 232,924,213
$ 421,271,222 $ 375,816,753 $ 311,986,268 $ 258,224,316 $ 276,020,896
Debt service as percentage of noncapital expenditures 4.39% 3.39%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
4.12% 3.54% 3.69%
212
City of Santa Clarita
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years Ended June 30, 2023
(modified accrual basis of accounting)
FISCAL YEAR
17-18
16-17
15-16
14-15
13-14
Revenues:
Taxes
$ 93,032,465
$ 89,340,115
$ 91,598,734
$ 85,789,556
$ 80,285,660
Special assessments
-
-
-
-
-
Licenses and permits
7,688,342
7,408,357
7,283,898
5,567,280
5,366,972
Developer fees
9,888,734
4,211,890
6,272,799
10,764,554
2,600,997
Investment income
595,650
1,030,146
3,937,618
2,026,507
1,911,491
Intergovernmental
36,491,705
23,922,361
31,380,753
31,953,692
34,355,734
Fines and forfeitures
1,372,687
1,117,620
973,753
1,261,752
1,661,157
Service charges
41,793,226
36,639,646
36,828,067
37,738,754
42,156,582
Other revenues
1,744,075
690,974
1,789,724
511,117
5,943,608
Total Revenues
192,606,884
164,361,109
180,065,346
175,613,212
174,282,201
Expenditures:
Current:
General government
50,728,642
41,138,676
35,969,981
43,196,168
36,294,205
Public safety
27,217,567
25,214,091
23,777,171
22,188,641
22,137,338
Recreation and community service
21,589,318
20,446,596
37,937,050
21,007,651
20,498,108
Public works
57,213,646
43,459,620
21,327,662
36,082,625
24,385,865
Community development
6,988,331
6,583,484
10,673,993
5,883,441
6,185,263
Neighborhood services
1,162,647
1,667,058
-
-
-
Administration and personnel services
-
-
-
-
-
Capital outlay
12,083,887
9,759,258
10,562,953
23,224,180
36,580,589
Debt service:
Principal
2,138,803
2,167,429
2,852,140
1,992,479
1,837,174
Interest
1,647,842
1,237,357
4,539,815
1,850,703
1,885,546
Cost of issuance
-
-
-
-
-
Redemption of district credits
-
-
-
5,105,402
-
Total Expenditures
180,770,683
151,673,569
147,640,765
160,531,290
149,804,088
Excess of Revenues Over (Under) Expenditures
11,836,201
12,687,540
32,424,581
15,081,922
24,478,113
Other Financing Sources (Uses)
Revenue bonds issued/issuance premium
15,848,271
- 32,997,352
- -
Proceeds of long-term debt
(35,099)
- (32,907,353)
- -
Proceeds from capital lease
-
- -
- -
Transfers in
25,690,566
8,046,713 11,940,563
7,850,640 9,757,447
Transfers out
(30,444,125)
(11,249,832) (17,960,861)
(14,478,956) (15,524,498)
Issuance of district credits
-
- -
- 11,297,334
Total Other Financing Sources (Uses)
11,059,613
(3,203,119) (5,930,299)
(6,628,316) 5,530,283
Net change in fund balances 22,895,814 9,484,421 26,494,282 8,453,606 30,008,396
Fund balances - Beginning of Year 223,439,792 196,945,510 188,491,904 158,483,508 141,810,350
Fund balances - End of Year $ 246,335,606 $ 206,429,931 $ 214,986,186 $ 166,937,114 $ 171,818,746
Debt service as percentage of noncapital expenditures 5.72% 2.80% 3.26% 2.95% 4.40%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
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
IMPROVE -PERSONAL
IMPROVE-
PERSONAL
OTHER
Year
LAND
MENTS PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
2013-14
1,431,971
2,264,780
3,696,751
9,989,545,816
13,726,755,146
107,166,367
(412,668,046)
23,410,799,283
2014-15
1,431,971
2,264,780
3,696,751
10,820,572,961
14,749,259,449
103,844,310
(453,562,893)
25,220,113,827
2015-16
1,431,971
2,264,780
3,696,751
11,358,919,366
15,476,133,167
109,544,613
(471,097,603)
26,473,499,543
2016-17
1,431,971
2,264,780
3,696,751
11,931,551,116
16,179,111,473
123,045,242
(348,794,590)
27,884,913,241
2017-18
2,368,193
2,208,225
4,576,418
12,988,746,949
17,460,522,327
136,887,194
(682,936,469)
29,903,220,001
2018-19
2,368,193
2,208,225
4,576,418
13,850,827,148
18,431,289,844
163,768,504
(817,961,355)
31,627,924,141
2019-20
2,076,418
2,208,225
4,284,643
15,147,396,256
19,912,518,511
149,977,284
(890,135,683)
34,319,756,368
2020-21
2,076,418
2,208,225
4,284,643
15,925,933,378
21,099,965,791
161,592,520
(1,093,220,517)
36,094,271,172
2021-22
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
2022-23
2,221,125
2,208,225
4,429,350
18,425,022,715
22,876,809,236
174,167,137
(1,053,639,624)
40,422,359,464
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2023
PERSONAL
PROPERTY,
1.85%
LAND, 43.45%
IMPROVEMENTS,
54.70%
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 2022-23
214
City of Santa Clarita
Assessed Values (1) and Actual Values of Taxable Property (Continued)
Last Ten Fiscal Years
LOCALLY ASSESSED TOTALS
HOME -
UNSECURED BEFORE TAXABLE % TOTAL OWNER
Fiscal IMPROVE- PERSONAL OTHER OTHER ASSESSED INCR DWECT PROPERTY
Year MENTS PROPERTY EXEMPTIONS TOTAL EXEMPTIONS VALUE (DECK) RATE (2) TAX RELIEF
2013-14
329,350,845
541,533,568
(15,907,716)
854,976,697
24,698,048,493
24,269,472,731
15.65%
0
236,577,388
2014-15
339,544,656
561,740,289
(13,152,888)
888,132,057
26,578,658,416
26,111,942,635
7.59%
0
232,799,644
2015-16
299,024,341
569,926,540
(15,283,837)
853,667,044
27,817,244,778
27,330,863,338
4.67%
0
230,402,082
2016-17
265,891,622
547,111,240
(15,791,822)
797,211,040
29,050,407,444
28,685,821,032
4.96%
0
226,031,427
2017-18
280,824,664
549,107,476
(10,383,140)
819,549,000
31,420,665,028
30,727,345,419
7.12%
0
228,373,713
2018-19
274,390,510
584,621,318
(10,543,790)
848,468,038
33,309,473,742
32,480,968,597
5.71%
0
225,813,184
2019-20
275,047,748
584,844,131
(9,114,469)
850,777,410
36,074,068,573
35,174,818,421
8.29%
0
230,072,192
2020-21
287,998,801
605,666,637
(8,808,819)
884,856,619
38,085,441,770
36,983,412,434
5.14%
0
223,881,831
2021-22
287,812,025
580,588,788
(3,743,026)
864,657,787
39,365,647,314
38,390,714,609
3.81%
0
220,341,312
2022-23
321,861,561
610,467,610
(2,388,958)
929,940,213
42,412,757,609
41,356,729,027
7.73%
0
219,411,916
45,000
40,000
35,000
30,000
25,000
O
20,000
15,000
911
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23
Fiscal Year
215
City of Santa Clarita
Redevelopment Agency (1)
Assessed Values (2) and Actual Values of Taxable Property
Last Ten Fiscal Years
STATE ASSESSED
LOCALLY ASSESSED
SECURED (UTILITY)
SECURED
FISCAL
IMPROVE- PERSONAL
IMPROVE-
PERSONAL OTHER
YEAR
LAND MENTS PROPERTY TOTAL
LAND
MENTS
PROPERTY EXEMPTIONS TOTAL
2013-14
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2014-15
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2015-16
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2016-17
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2017-18
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2018-19
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2019-20
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2020-21
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2021-22
N/A N/A N/A N/A
N/A
N/A
N/A N/A
N/A
2022-23
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
TOTALS
HOME -
UNSECURED
TOTALS
TAXABLE
OWNER
FISCAL
IMPROVE-
PERSONAL
OTHER
BEFORE
ASSESSED
VALUE
PROPERTY
YEAR
MENTS
PROPERTY
EXEMPTIONS
TOTAL
BASE YEAR
BASE YEAR
VALUE
GROWTH TAX RELIEF
2013-14
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2014-15
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2015-16
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2016-17
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2017-18
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2018-19
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2019-20
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2020-21
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2021-22
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2022-23
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
217
City of Santa Clarita
Assessed Values —Taxable Property
Last Ten Fiscal Years
CATEGORY
22-23
21-22
FISCAL YEAR
20-21
19-20
18-19
Residential
$ 32,800,203,874 $
30,326,102,286
$ 29,068,019,284 $
27,571,753,581
$ 25,140,365,171
Commercial
4,083,237,255
3,980,147,941
3,866,268,970
3,681,744,410
3,557,018,366
Industrial
2,360,064,334
2,031,709,683
1,955,686,889
1,878,969,596
1,861,078,681
Irrigated
4,119,683
3,678,125
3,375,991
3,341,172
3,707,035
Dry farm
-
-
-
-
-
Recreational
116,460,141
109,898,400
118,115,005
116,868,740
113,347,606
Institutional
253,388,898
276,997,197
259,899,765
233,475,135
230,449,000
Government
674,098
804,413
1,357,829
1,323,707
371,122
Miscellaneous
318,478
356,649
352,996
346,079
339,297
Vacant land
646,601,491
644,262,314
677,706,729
702,751,187
593,951,571
SBE Nommitaiy
4,429,350
4,429,350
4,284,643
4,284,643
4,576,418
Possessory Int.
157,291,212
147,670,464
143,487,714
129,182,761
127,296,292
Unsecured
929,940,213
864,657,787
884,856,619
850,777,410
848,468,038
Unknown
-
-
-
-
-
TOTALS:
$ 41,356,729,027 $
38,390,714,609
$ 36,983,412,434 $
35,174,818,421
$ 32,480,968,597
35,000
30,000
N 25,000
c
O
20,000
c
15,000
10,000
5,000
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23
Fiscal Year
e Residential
■ Commercial
0 Industrial
■ Vacantland
0 All others
218
City of Santa Clarita
Assessed Values —Taxable Property (Continued)
Last Ten Fiscal Years
CATEGORY
17-18
16-17
FISCAL YEAR
15-16
14-15
13-14
Residential
$ 23,734,569,687 $
21,784,467,001
$ 20,809,579,112 $
19,755,522,402
$ 18,138,258,224
Commercial
3,399,444,104
3,248,599,972
3,059,958,633
2,952,772,231
2,847,760,176
Industrial
1,790,582,919
1,706,030,432
1,799,119,742
1,642,718,866
1,561,091,316
Irrigated
2,993,570
2,960,760
2,936,120
2,834,466
2,827,311
Dry farm
-
-
-
-
-
Recreational
106,578,193
99,802,827
104,324,505
101,870,300
100,138,918
Institutional
193,500,837
213,333,035
162,056,819
142,862,940
136,824,169
Government
363,846
356,714
220,358
216,042
215,066
Miscellaneous
315,717
309,530
348,240
341,421
1,017,342
Vacant land
554,513,132
449,270,431
419,750,992
507,997,067
509,125,263
SBE Nommitary
4,576,418
3,696,751
3,696,751
3,696,751
3,696,751
Possessory Int.
120,357,965
117,718,179
115,205,002
112,978,072
113,541,478
Unsecured
819,549,000
797,363,610
853,667,044
888,132,057
854,976,697
Unknown
31
20
20
20
20
TOTALS: $ 30,727,345,419 $ 28,423,909,262 $ 27,330,863,338 $ 26,111,942,635 $ 24,269,472,731
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
City of Santa Clarita
Assessed Values —Use Category Summary
Fiscal Year 2022-23
CATEGORY
PARCELS
ASSESSED
VALUE
PERCENT
EXEMPTIONS
NET
TAXABLE
VALUE
PERCENT
Residential
63,596 $
32,891,739,924
77.4%
$ 91,536,050 $
32,800,203,874
79.31%
Commercial
944
4,219,512,203
9.9%
$ 136,274,948
4,083,237,255
9.87%
Industrial
740
2,594,722,786
6.1%
$ 234,658,452
2,360,064,334
5.71%
Irrigated
6
4,119,683
0.0%
$ -
4,119,683
0.01%
Recreational
35
117,070,738
0.3%
$ 610,597
116,460,141
0.28%
Institutional
106
835,367,715
2.0%
$ 581,978,817
253,388,898
0.61%
Government
6
1,614,448
0.0%
$ 940,350
674,098
0.00%
Miscellaneous
7
318,478
0.0%
$ -
318,478
0.00%
Vacant land
3,561
654,190,901
1.5%
$ 7,589,410
646,601,491
1.56%
SBE Nonunitaiy
(15)
4,429,350
0.0%
$ -
4,429,350
0.01%
Possessory Int.
(2,085)
157,342,212
0.4%
$ 51,000
157,291,212
0.38%
Unsecured
(4,444)
932,329,171
2.2%
$ 2,388,958
929,940,213
2.25%
Exempt
1,262
66,738,981
0.2%
$ 66,738,981
-
0.00%
TOTALS: 63,719 $ 42,479,496,590 100.00% $ 1,122,767,563 $ 41,356,729,027 100.00%
ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2022-23 Fiscal Year 2022-23
■ All Others,
❑ Industrial, 6.53%
6.11 %
Commercial
, 9.93%
Residential,
77.43%
❑r�M[2110thers,
i
Commercial,
9.87%
Residential,
79.31 %
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
Fiscal
Year
LOS
ANGELES
GENERAL COUNTY
SCV
WATER
AGENCY
COUNTY COUNTY
SCHOOL SANITATION FLOOD
DISTRICTS DISTRICTS CONTROL
TOTAL
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
2022-23
1.000000 -
0.070600
0.368420 - -
1.439020
1.200000
1.000000
0.800000
0.600000
0.400000
0.200000
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2022-23
Y FLOOD
ITROL
0.000000
LA COUNTY DISTRICTS
Source: HdL Coren & Cone, Los Angeles County Assessor 2020-21 Tax Rate Table
221
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222
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies
City General Fund Direct Rates
RDA Incremental Rate
Total Direct Rate
City Share
Prop. 13
of 1% Total City
plus applicable
Roll Year per Prop. 13 Debt Rates Rates
voter -approved debt
2022-23 0.086630 0.000000 0.086630
0.00000%
8.97200%
Agency
2022-23
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)
County School Service Hart William S. Hart (757.06)
County School Services (400.15)
Development Center Handicapped Saugus Union (581.07)
Educational Augmentation Fund Impound (400.01)
Educational Revenue Augmentation Fund (ERAF) (400.00)
Greater LA Co. Vector Control (061.80)
Santa Clarita Library (249.56)
LA County Fire - Ffw (007.31)
LA County Flood Control Improvement District (030.10)
LA County Flood Control Maintenance (030.70)
LA County General (001.05)
LA County Accum Cap Outlay (001.20)
Saugus Union School District (581.01)
Santa Clarita Community College (814.04)
Santa Clarita Valley Sanitation Dist. LA Co.
William S. Hart Elementary School Fund (757.07)
William S. Hart Union High (757.02)
Total Prom 13 Rate:
SCV Water Agency (302.01)
Newhall Elementary School District Debt Services 1999 Ser. A (581.52)
Newhall Elementary School District Debt Services 2011 Ser. A (581.54)
William S. Hart Unified Debt Services 2001 Ser. B (757.52)
William S. Hart Un.Hsd Debt Services 2008 Ser. B (757.54)
William S. Hart Un.Hsd Debt Services 2008 Ser. C (757.56)
William S. Hart Un.Hsd Debt Services 2013 Ref. Bds. (757.57)
William S. Hart Un.Hsd Debt Services 2020 Ref. Bds. (757.59)
Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52)
Santa Clarita Community College Debt Services 2006 Ser. 2012 (814.56)
Santa Clarita Community College Debt Services 2013 Refunding Bonds(814.57)
Santa Clarita Community College Debt Services 2006 Ser. 2014 (814.58)
Santa Clarita Community College Debt Services 2016 Refunding Bonds (814.59)
Santa Clarita Community College Debt Services 2006 Ser. 2016 (814.60)
Santa Clarita Community College Debt Services 2016 Ser. 2017 (814.61)
Santa Clarita Community College Debt Services 2016 Ser. 2019 (814.62)
Santa Clarita Community College Debt Services 2019 Refunding Bonds (814.63)
Santa Clarita Community College Debt Services 2021 Refunding Bonds (814.64)
Total Tax Rate
0.00905
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
0.00039
weighted average of all individual direct
0.00165
rates applied by the government preparing
0.00104
the statistical section information.
0.13200
The percentages presented in the columns
0.05430
above do not sum across rows. In 1978
0.00031
California voters passed Proposition 13,
0.02740
which set the property tax at a 1.00% fixed
0.00550
amount. This 1.00% is shared by all the
0.00217
taxing agencies for which the subject
0.01210
property resides within. In addition to the
0.18580
1.00% fixed amount, property owners are
0.00013
charged taxes as a percentage of assessed
0.06280
property values for the payment of any
0.04320
voter -approved bonds.
0.00989
0.04940
0.09400
1.00000
0.065500
0.009706
0.026540
0.013503
0.003222
0.008904
0.009341
0.018563
0.003259
0.000031
0.006772
0.001143
0.005850
0.001498
0.003608
0.010448
0.003509
0.002752
0.194149
Source: HdL Coren & Cone, Los Angeles County Assessor 2022/23 Tax Rate Table
223
City of Santa Clarita
Principal Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
FISCAL YEAR 2022-23
PERCENT of
Number
TOTAL
TOTAL CITY
of
ASSESSED
ASSESSED
OWNER/TAXPAYER
Parcels
VALUE
VALUE
Valencia Town Center Venture LP
17 $
412,240,922
1.02 %
Ridgewood Vista Canyon LLC
3
207,788,324
0.51
Park Sierra Properties
15
153,078,980
0.38
BEL Valencia LLC Lessor
9
145,017,455
0.36
Social Innovation Park Owner DE LLC
14
133,500,000
0.33
WESCO IV LLC
2
131,004,316
0.32
Saugus Colony Limited
19
129,472,633
0.32
IVT River Oaks Valencia LLC
7
124,814,570
0.31
EQR Valencia LLC
218
114,870,557
0.28
EQR The Oaks LLC
28
112,514,122
0.28
Total
All Others
Total Assessed Valuation
332 1,664,301,879 4.11 %
38,812,312,582 95.89
$ 40,476,614,461 100.00 %
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone, LA County Assessor 2022/23 Combined Tax Rolls
224
City of Santa Clarita
Principal Property Taxpayers (Continued)
Current Fiscal Year and Nine Fiscal Years Ago
FISCAL YEAR 2013-14
PERCENT of
Number
TOTAL
TOTAL CITY
of
ASSESSED
ASSESSED
OWNER/TAXPAYER
Parcels
VALUE
VALUE
Valencia Town Center
17 $
358,378,769
1.48 %
Saugus Colony Limited
20
140,548,344
0.58
VTC Business Center LLC
9
138,852,154
0.57
Park Sierra Properties
15
131,889,124
0.54
EQR Valencia LLC
218
98,997,964
0.41
Packard Humanities Institute
1
97,350,559
0.40
EQR The Oaks LLC
28
96,921,845
0.40
Walmart/Sam's
5
78,157,514
0.32
RREEF America Reit II Corporation
2
75,033,483
0.31
Time Warner Cable
4
65,264,656
0.27
319 1,281,394,412 5.28 %
22,987,636,319 94.72
$ 24,269,030,731 100.00 %
225
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
FISCAL
YEAR
TAXES
LEVIED
COLLECTIONS
COLLECTIONS
PERCENT INSUBSEQUENT
COLLECTIONS YEARS
TOTAL
COLLECTIONS
TO DATE
PERCENT
COLLECTIONS
TO DATE
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%
2022-23
36,147,363
35,692,965
98.7% -
35,692,965
98.74%
TAX COLLECTIONS
& DELINQUENCY - LAST TEN FISCAL
YEARS
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
2013-14 2014-15 2015-16 2016-17 2017-18
2018-19 2019-20 2020-21 2021-22 2022-23
FISCALYEAR
■LEVIES OCOLLECTIONS DELINQUENT AMOUNT
NOTES:
Article XIII-A of the Constitution of the State of California, adopted by the electorate in June 1978,
precludes the City from a local property tax levy. All general-purpose property taxes are levied by
the County and allocated to other governmental entities on a predetermined formula.
The above figures include secured property taxes only.
Prior to the implementation of GASB 44 in FY 2006, collections in subsequent years were not required
to be reported by tax year. Beginning in FY 2007, collections in subsequent years are included.
Source: County of Los Angeles, Department of Auditor -Controller
226
City of Santa Clarita
Successor Agency
Top Property Owners Based on Net Values
Fiscal Year 2022-23
Secured
Unsecured
Combined
% of
% of
% of
Owner
Parcels
Value
Net AV
parcels Values
Net AV
Value
Net AV
1 COV-SAUGUS B LLC
5
$109,700,000
11.87%
109,700,000
10.76%
2 SPECTRUM PACIFIC WEST LLC
3 54,183,294 56.82%
54,183,294
5.31%
(Pending Appeals On Parcels)
3 COV SC LAND LLC
6
42,199,962
4.57%
42,199,962
4.14%
4 LA RAILROAD 93 LLC
24
32,075,940
3.47%
32,075,940
3.15%
5 NEWHALL BLISS LLC
10
30,973,279
3.35%
30,973,279
3.04%
6 OLD TOWN MAIN LLC
3
25,062,904
2.71%
25,062,904
2.46%
7 JDH
3
12,382,886
1.34%
12,382,886
1.21%
8 LYONS PROPERTIES LIMITED
1
11,463,092
1.24%
11,463,092
1.12%
9 TELFAIR CORPORATION
2
9,863,397
1.07%
9,863,397
0.97%
10 25805 SAN FERNANDO ROAD LLC
1
9,153,229
0.99%
9,153,229
0.90%
Top Ten Total
55
$ 282,874,689
30.60%
3 $ 54,183,294 56.82%
$ 337,057,983
33.06%
Agency Total 924,320,991
Incremental Net AV Total
Source: HdL Coren & Cone
$ 677,952,924 41.72%
95,364,991
1,019,685,982
$ 77,433,339 69.97% $ 755,386,263 44.62%
227
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228
City of Santa Clarita
Successor Agency
Project Area Assessment Appeals Summary and Tax Collection History
Fiscal Years 2013-14 Through 2022-23
Project Area Assessment Appeals Summary—FY 2022-23
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
57 36 32 37.8% 21 / $223,416,040 19 $ 74,984,683
Tax Collection History
For Fiscal Years 2013-14 Through 2022-23
Current Year
Current Year Prior Year Collection Total Collection
Year Tax Levy Collection Collection Total Percentage Percentage
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
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
4,715,737
4,618,068
1,503,717
4,689,684
98%
99%
2020-21
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%
2022-23
7,531,776
7,432,174
883,716
8,315,890
99%
110%
Source: Los Angeles County Auditor/Controller Ledgers and special reports pursuant to AB X 26.
229
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2022-23
LAND
STRUCTURE
TOTAL
ASSESSOR'S
ASSESSED
ASSESSED
ASSESSED
TAXABLE
PARCEL NUMBER
PROPERTY OWNER
VALUES ($)
VALUES ($)
VALUES ($)
ACREAGE
2861-058-071
Valencia Town Center Venture LP
$ 1,379,188
$ 210,156
$ 1,589,344
0.84
2861-058-072
Valencia Town Center Venture LP
3,822,897
19,874,467
23,697,364
4.81
2861-058-073
Valencia Town Center Venture LP
30,211,070
3,722,845
33,933,915
15.68
2861-058-076
Valencia Town Center Venture LP
962,391
95,579
1,057,970
1.18
2861-058-077
Valencia Town Center Venture LP
5,196,511
444,481
5,640,992
6.70
2861-058-081 Valencia Town Center Venture LP 17,573,490 188,649,964 206,223,454 14.34
2861-058-084 Valencia Town Center Venture LP 3,625,312 10,508,170 14,133,482 2.05
2861-058-085 Valencia Town Center Venture LP 472,859 236,426 709,285 0.33
Totals: $ 63,243,718 $ 223,742,088 $ 286,985,806 45.94
230
City of Santa Clarita
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2022-23
ASSESSOR'S
APPLIED RATE
PARCEL NUMBER
CLASS
MAX TAX RATE ($)
MAX TAX
M
CHARGE ($)
2861-058-071
1
$ 40,125 $
33,870
$ 29,858 $
25,203
2861-058-072
1
40,125
193,001
29,858
143,618
2861-058-073
1
40,125
629,241
29,858
468,237
2861-058-076
1
40,125
47,508
29,858
35,352
2861-058-077
1
40,125
268,838
29,858
200,050
2861-058-081 1&2
2861-058-084 1
2861-058-085 1
40,125 & 40,136 575,468
40,125 82,256
40,125 13,161
29,862 428,223
29,858 61,209
29,858 9,794
$ 1,371,686
231
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
GOVERNMENTAL ACTIVITIES
FISCAL
CERTIFICATES
PRIVATE
CAPITAL
GASB 87 GASB 96
YEAR
OF PARTICIPATION (1) (3)
LOANS
BONDS (2)
PLACEMENT LEASE (5)
LEASES
LEASES (6) SUBSCRIPTION (7)
2013-14
9,323,138 15,291,374
580,000
12,002,622
154,705
2014-15
8,128,138 15,175,988
300,000
11,673,964
217,615
2015-16
- -
200,000
26,012,352
6,328,411
138,877
2016-17
100,000
25,262,456
4,984,543
60,444
2017-18
-
40,380,831
3,595,740
32,200
2018-19
65,333,412
2,177,480
2,538
2019-20
65,085,696
730,371
497,583
2020-21
77,875,819
-
542,094
-
2021-22
75,762,440
97,376
880,316
2022-23
92,553,433
97,376
544,549 2,843,206
NOTES:
(1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of Local Agency (Redevelopment) Revenue Bonds Series
1991. Simultaneously with the receipt of the Bond proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita
Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance the design, acquisition, improvement or construction of land,
the City Hall Building and certain road improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease payments to be made
by the City to the Authority equal to the principal and interest due on the revenue bonds. At this point in time, the Agency is not active.
-The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation Series 1997 of $19,670,000. As a result, the 1991 Series
certificates are considered to be defeased and the liability for those certificates was removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to advance refund $17,640,000 of outstanding
1997 Series certificates. As a result, the 1997 Series were considered defeased and the liability for those certificates was removed from the long-term liability.
-On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding 2005
Series certificates. As a result, the 2005 Series were considered defeased and the liability for those certificates was removed from the long-term liability.
-In November 2001, the Santa Clarita Public Financing Authority issued $3,200,000 in Certificates of Participation for the acquisition of parkland. In 2006 the
COP Series 2001 were considered defeased and the liability for those certificates was removed from the general long-term debt.
(2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue Bonds (Golden Valley Road), Series 2007 for the
acquisition of right-of-way.
- On June 22, 2016, the Santa Clarita Public Financing Authority issued $10,320,000 in Series 2016A Lease Revenue Bonds (Golden Valley Road) to 'advance
refund $11,260,000 of oustanding 2007 Series bonds. As a result, the 2007 Series were considered defeased and the liability'for those bonds was removed from the
general long-term debt.
- On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD) to advance refund
$15,070,000 of outstanding 2007 Series certificates.
- On June 1, 2018, the Santa Clarita Public Financing Authority issued $15,300,000 in Lease Revenue Bonds for the acquisition and retrofit of streetlights located
within the City from Southern California Edison.
- On June 27, 2019, the Santa Clarita Public Financing Authority issued $25,850,000 in Lease Revenue bond proceeds for the construction of a new Sheriff Station
facility.
- On October 22, 2020, the Santa Clarita Public Financing Authority issued $10,645,000 in Series 2020A Lease Revenue Bonds and $3,625,000 in Series 202OA-T
Federally Taxable Lease Revenue Bonds to provide funds in the acquisition of a recreational facility.
- On October 1, 2022, the Santa Clarita Public 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
- Deferred amount for issuance premium, net of discount is included above.
(3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15,525,000 in Certificates of Participation for the acquisition of open space and
parkland.
-On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD) to advance refund
$15,070,000 of outstanding 2007 Series certificates. As a result, the 2007 Series were considered defeased and the liability for those bonds was removed from the
general long-term debt.
(4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non -Housing Tax Allocation Bonds and $8,850,000 in Low/Mod Housing
Tax Allocations Bonds to fund certain redevelopment projects within the Newhall Redevelopment Project area. Upon the dissolution of redevelopment agencies in
the State of California effective February 1, 2012, the bonds were transferred to the RDA Successor Agency.
-Deferred amount for issuance premium, net of discount is included above.
Sources: City of Santa Clarita, Administrative Services Department - Finance Division
232
City of Santa Clarita
Ratio of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
PERCENTAGE
SUCCESSORAGENCY BUSINESS -TYPE ACTIVITIES OF OUTSTANDING
TOTAL
TAXABLE
DEBT
DEBT TO
GOVERNMENTAL TAX ALLOCATION
GRAND LEASE
PRIMARY
ASSESSED
PER
PERSONAL
ACTIVITIES TOTAL
BONDS (4)
TOTAL PAYABLE
TOTAL GOVERNMENT
VALUE
CAPITA
INCOME
37,351,839
37,351,839
37,351,839
0.15%
179
N/A
35,495,705
35,495,705
35,495,705
0.14%
166
N/A
32,679,640
32,679,640
32,679,640
0.12%
149
N/A
30,407,443
30,407,443
30,407,443
0.11%
141
N/A
44,008,771
34,794,208
78,802,979
44,008,771
0.14%
203
N/A
67,513,430
33,960,547
101,473,977
67,513,430
0.21%
310
N/A
66,313,650
33,106,887
99,420,537
66,313,650
0.19%
299
N/A
78,417,913
32,223,226
110,641,139
78,417,913
0.21%
354
N/A
76,740,132
31,294,566
108,034,698
76,740,132
0.20%
335
N/A
96,038,564
30,325,905
129,207,675
96,038,564
0.23%
416
N/A
(5) On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding
2005 Series certificates.
(6) On July 1, 2021, the City of Santa Clarita adopted Governemntal Account Standards Board Statement No. 87 Leases .
(7) On July 1, 2022, the City of Santa Clarita adopted Governemntal Account Standards Board Statement No. 96 Subscription -Based Technology Arrangements.
450
400
350
300
250
200
150
100
50
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23
Fiscal Year
233
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
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
0.19%
331
2022-23
230,659
92,553,433
- 92,553,433
0.22%
401
450
400
350
300
250
200
150
100
50
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Fiscal Year
Source: (1) State of California, Finance Department
234
City of Santa Clarita
Direct and Overlapping Tax and Assessment Debt
June 30, 2023
2022-23 Assessed Valuation: $41,356,729,027
(Net of Redevelopment Agency Incremental Value of $755,386,263)
2022-23 Population:
230,659
Percent
City's Share
Total Debt
Applicable
of Debt
06/30/2023
To City
06/30/2023
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Santa Clarita Community College District $
380,436,436
76.36%
$
290,486,045
William S. Hart Union High School District
299,603,941
76.35%
$
228,741,617
William S. Hart Union High School District Community Facilities District No. 90-1
70,000
100%
$
70,000
William S. Hart Union High School District Community Facilities District No. 2005-1
13,050,000
100%
$
13,050,000
William S. Hart Union High School District Community Facilities District No. 2015-1
24,470,000
100%
$
24,470,000
Los Angeles Community College and Unified School Districts
15,205,455,000
0.00001%
$
1,521
Castaic Union School District
23,205,000
27.70%
$
6,426,857
Newhall School District
2,550,000
60.64%
$
1,546,269
Newhall School District School Facilities Improvement District No. 2011-1
55,255,000
62.34%
$
34,447,625
Saugus Union School District
1,205,504
93.79%
$
1,130,618
Saugus Union School District School Facilities Improvement District No. 2014-1
123,620,000
94.37%
$
116,665,139
Saugus Union School District Community Facilities District No. 2005-1
13,370,000
100%
$
13,370,000
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 1
25,075,000
100%
$
25,075,000
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 2
19,215,000
100%
$
19,215,000
Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 3
18,530,000
100%
$
18,530,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 1
10,960,000
100%
$
10,960,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 2
6,260,000
100%
$
6,260,000
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 3
13,375,000
100%
$
13,375,000
Saugus Union School District Community Facilities District No. 2019-1
9,155,000
100%
$
9,155,000
Saugus -Hart School District Community Facilities District No. 2000-1
6,630,000
100%
$
6,630,000
Saugus-Castaic School District Facilities Financing Authority
$
-
Community Facilities District No. 2006-1C
27,800,000
100%
$
27,800,000
Sulphur Springs Union School District
70,544,197
94%
$
66,527,410
Sulphur Springs Union School District No 2002-1
21,570,000
100%
$
21,570,000
Sulphur Springs Union School District No 2006-1
22,380,879
100%
$
22,380,879
Sulphur Springs Union School District No 2014-1
18,400,000
100%
$
18,400,000
City of Santa Clarita Community Facilities District No. 2002-1
11,450,000
100%
$
11,450,000
City of Santa Clarita Community Facilities District No. 2016-1
17,020,000
100%
$
17,020,000
City of Santa Clarita 1915 Act Bonds
335,000
100%
$
335,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
$ 1,025,088,979
Los Angeles County General Fund Obligations
2,601,551,282
2.18%
$
56,791,864
Los Angeles County Superintendent of Schools Certificates of Participation
3,403,487
2.18%
$
74,298
Los Angeles County Sanitation District No. 32 Authority
769,087
78.56%
$
604,218
Santa Clarita Community College District Certificates of Participation
5,740,000
76.36%
$
4,382,834
William S. Hart Union High School District General Fund Obligations
58,380,183
76.35%
$
44,572,102
Castaic Union School District Certificates of Participation
2,710,000
27.696%
$
750,562
Saugus Union School District General Fund Obligations
-
0.000%
$
-
Sulphur Springs Union School District Certificates of Participation
28,880,000
94.31%
$
27,235,573
Los Angeles Unified School District Certificates of Participation
97,870,000
0.00001%
$
10
City of Santa Clarita Obligations
96,038,566
100.00%
$
96,038,566 (2)
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
$
230,450,027
Total Net Direct and Overlapping General Fund Debt
$
230,450,027
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
29,680,000
100.000%
29,680,000
Total Direct Debt
$
96,038,566
Gross Total Overlapping Debt
$
1,189,180,440
Net Total Overlapping Debt
$
1,189,180,440
GROSS COMBINED TOTAL DEBT
$
1,285,219,006 (3)
NET COMBINED TOTAL DEBT
$
1,285,219,006
(1) Percentage of overlapping debt applicable to the city is estimated using taxable assed property value. Applicable percentages were estimated 1
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 $97,376 for the Zamboni Lease, $544,549 GASB 87 Lease Payable, $2,843,206 GASB
96 subscription
liabilities, $7,480,000 for the 2016A series Golden Valley Road Bond, $24,815,000 for the 2019 Series Sheriff Station Bond,
$13,080,000 for the 2020A
and 2020A-T Recreational Facility Bonds, $18,365,000 for the Energy Efficiency 2022A and 2022B Bonds, $11,575,000 for Open Space Preservation
District, and $3,438,620 for deferred amount for issuance premium, net of discount. Also included are $13,345,000 for Revenue and Taxable Revenue
Bonds -Series 2018A and Series 2018B, Streetlights Acquisition and Retrofit Program, and $454,814 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 obligation
Ratios to 2022-2023 Assessed Valuation:
Total Overlapping Tax and Assessment Debt...................................................2.48%
Total Direct Debt($96,038,566)....................................................0.23%
Combined Total Debt...............................................................................................3.11
%
Ratios to Redevelopment Successor Agency Incremental Valuation ($755,386,263):
Total Overlapping Tax Increment Debt..............................................................3.93%
Source: Avenue Insights & Analytics California Municipal Statistics, Inc.
235
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
FISCAL YEAR
22-23
21-22
20-21
19-20
18-19
Assessed valuation
$ 41,356,729,027 $
38,390,714,609
$ 36,983,412,434 $
35,174,818,421 $
32,480,968,597
Conversion percentage
25%
25%
25%
25%
25%
Adjusted assessed valuation
10,339,182,257
9,597,678,652
9,245,853,109
8,793,704,605
8,120,242,149
Debt limit percentage
15%
15%
15%
15%
15%
Debt limit
1,550,877,339
1,439,651,798
1,386,877,966
1,319,055,691
1,218,036,322
Total net debt applicable to limit:
General obligation bonds
-
-
-
-
-
Legal debt margin
$ 1,550,877,339 $
1,439,651,798
$ 1,386,877,966 $
1,319,055,691 $
1,218,036,322
Total debt applicable to the limit
as a percentage of debt limit
0%
0%
0%
0%
0%
Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation
perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local
governments located witbin the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
236
City of Santa Clarita
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
FISCAL YEAR
17-18
16-17 15-16
14-15
13-14
Assessed valuation
$
30,727,345,419 $
28,685,821,032 $ 27,330,863,338 $
26,111,942,635 $
24,269,472,731
Conversion percentage
25%
25% 25%
25%
25%
Adjusted assessed valuation
7,681,836,355
7,171,455,258 6,832,715,835
6,527,985,659
6,067,368,183
Debt limit percentage
15%
15% 15%
15%
15%
Debt limit
1,152,275,453
1,075,718,289 1,024,907,375
979,197,849
910,105,227
Total net debt applicable to limit:
General obligation bonds
-
- -
-
-
Legal debt margin
$
1,152,275,453 $
1,075,718,289 $ 1,024,907,375 $
979,197,849 $
910,105,227
Total debt applicable to the limit
as a percentage of debt limit
0%
0% 0%
0%
0%
LEGAL DEBT MARGIN
Last Ten Fiscal Years
1,600
1,400
1,200
^1,000
N
i
p
800
600
C
400
200
0
13-14 14-15 15-16
16-17 17-18 18-19 19-20 20-21
21-22 22-23
Fiscal Year
237
City of Santa Clarita
Pledged Revenue Coverage
Last Ten Fiscal Years
TRANSIT
LESS NET
Fiscal TRANSIT OPERATING AVAILABLE DEBT SERVICE
Year REVENUES(l) EXPENSES (2) REVENUES Principal Interest COVERAGE
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 - - -
2022-23
39,170,359
35,660,261
3,510,098 - - -
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
238
City of Santa Clarita
Demographic and Economic Statistics
Last Ten Calendar Years
AVERAGE
AVERAGE
PER
CITY OF
ANNUAL
LOS ANGELES
ANNUAL
CAPITA
TOTAL
SANTA CLAR TA PERCENTAGE
COUNTY
PERCENTAGE
PERSONAL
PERSONAL
UNEMPLOYMENT
YEAR
POPULATION (1)
INCREASE
POPULATION (1)
INCREASE
INCOME (2)
INCOME (2)
RATE (3)
2014
209,130
2.04%
10,041,797
0.84%
50,751
673,073,539
4.70%
2015
213,231
1.96%
10,136,559
0.94%
54,526
727,377,241
6.40%
2016
219,611
2.99%
10,241,335
1.03%
57,160
760,828,529
4.70%
2017
216,350
-1.48%
10,241,278
0.00%
60,087
802,394,100
4.40%
2018
216,589
0.11%
10,283,729
0.41%
63,913
849,493,416
5.10%
2019
218,103
0.70%
10,253,716
-0.29%
66,684
881,215,471
4.80%
2020
221,932
1.76%
10,172,951
-0.79%
69,805
915,132,543
13.60%
2021
221,572
-0.16%
10,044,458
-1.26%
75,821
985,475,353
7.30%
2022
228,835
3.28%
9,861,224
-1.82%
N/A
N/A
4.70%
2023
230,659
0.80%
9,761,210
-1.01%
N/A
N/A
5.30%
4.50%
3.50% d 2.99%
2.50 % d 2.04% 1.9
1.50%
0.50%
-0.50% � 2014 2015 2016
-1.50%
POPULATION INCREASE
Last Ten Fiscal Years
3.28%
1.76%
o
0.70°/ 80 0
0.11%
7 018 2019 2020 2021 2022 2023
YEAR
Sources: (1) State of California, Finance Department, as of 1/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.
239
EMPLOYER
Six Flags Magic Mountain
Henry Mayo Newhall
Memorial Hospital
Princess Cruises
The Master's College
Boston Scientific
Logix
Advanced Bionics
Woodward HRT
Amazon
AMS Fulfillment
Largest firms a�
All others
Grand total
* As of August 2023
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
2023*
PERCENT
NUMBER
of
of
TOTAL
EMPLOYEES EMPLOYMENT
EMPLOYER
2,500
12.13%
Six Flags Magic Mountain
1,775
8.61%
Princess Cruises
Henry Mayo Newhall
1,100
5.34%
Memorial Hospital
916
4.44%
Quest Diagnostics
742
3.60%
The Master's College
694
3.37%
Boston Scientific
693
3.36%
Woodward HRT
647
3.14%
Cal Arts
580
2.81%
Walmart
498
2.42%
Aerospace Dynamics
10,145
49.21%
Largest firms
10,471
50.79%
All others
20,616
100.00%
Grand total
NOTE: (1)Non-governmental employers
2014
PERCENT
NUMBER of
of TOTAL
EMPLOYEES EMPLOYMENT
Source: 2023 Economic Outlook Santa Clarita Valley Economic Dev Corp & College of the Canyons
4,500 24.32%
1,600 8.65%
1,400
7.56%
850
4.59%
800
4.32%
770
4.16%
772
4.17%
690
3.73%
624
3.37%
548
2.96%
12,554 67.83%
5,953 32.17%
18,507 100.00%
240
Function
General government
Public safety (1)
Public works
Community development
Recreation and Comm Svcs
Neighborhood Services (2)
Transit
Totals
600.00
500.00
400.00
300.00
200.00
100.00
0.00
City of Santa Clarita
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
FISCAL YEAR
22-23 (3)
21-22
20-21
19-20
18-19
17-18
16-17
15-16
14-15
13-14
172.50
87.50
85.00
84.00
81.00
76.00
76.00
91.00
87.60
87.60
94.00
142.50
141.50
141.50
139.50
126.50
128.50
131.50
125.00
122.00
63.50
46.00
45.00
45.00
44.00
43.00
44.00
37.00
41.00
41.00
53.40
69.50
67.25
68.25
68.25
63.90
63.90
112.15
111.15
109.15
84.50
105.60
103.60
102.60
99.60
79.00
74.00
-
-
-
10.00
10.00
10.00
10.00
10.00
12.00
12.00
12.00
11.00
11.00
477.90 461.10 452.35 451.35 442.35 400.40 398.40 383.65 375.75 370.75
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23
Fiscal Year
(1) Police and Fire services are provided by the County
(2) The Neighborhood Services department was added for FY 2016-17
(3) Citywide reorganization effective FY 2022-23
Source: City of Santa Clarita, Adopted Budget -Funded Regular Fulltime Equivalent Positions
241
Function
Police:
Parking citations issued (1)
Parking revenue collected
Public works:
Street resurfacing (miles)
Parks and Recreation:
Number of recreation classes
Number of facility rentals (times)
Transit:
Number of customers served (2)
City of Santa Clarita
Operating Indicators by Function
Last Ten Fiscal Years
FISCAL YEAR
22-23 21-22 20-21 19-20 18-19
23,512
18,651
11,359
13,992
24,214
$ 1,101,410 $
747,323 $
417,978 $
516,477 $
364,954
24.0
58.2
28.0
38.7
26.0
1,518
2,038
1,593
2,197
2,773
7,078
12,096
10,016
11,778
12,787
2,453,098
1,900,958
1,673,828
2,131,694
2,680,202
NOTE: (1) The City contracts with Ace Parking and Data Ticket Inc. for its parking enforcement 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
242
Function
Police:
Parking citations issued (1)
Parking revenue collected
Public works:
Street resurfacing (miles)
Parks and Recreation:
Number of recreation classes
Number of facility rentals (times)
Transit:
Number of customers served (2)
City of Santa Clarita
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
FISCAL YEAR
17-18 16-17 15-16 14-15 13-14
15,505
13,133
9,035
4,765
4,786
$ 498,749 $
470,843 $
379,384 $
320,682 $
323,040
38.9
45.0
15.5
80.0
20.9
2,903
2,992
2,918
2,189
2,557
12,013
19,924
13,390
19,018
14,604
2,775,327
2,864,351
3,167,021
3,422,015
3,540,969
NOTE: (1) The City contracts with Ace Parking and Data Ticket Inc. for its parking enforcement 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
243
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
22-23 21-22 20-21 19-20 18-19
596
573
573
570
540
18,832
18,703
18,622
18,662
18,662
200
199
198
195
187
4
4
4
4
5
35
35
34
33
32
2
2
2
2
2
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 18,832 streetlights, inclusive of Highway Safety
Lights which are attached to traffic signals.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
244
City of Santa Clarita
Capital Assets Statistics by Function (Continued)
Last Ten Fiscal Years
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
FISCAL YEAR
17-18 16-17 15-16 14-15 13-14
540
537
516
497
496
18,662
17,843
17,843
17,843
17,843
187
186
180
180
177
5
5
5
5
5
32
32
32
32
29
2
2
2
2
2
4
4
4
4
4
Source: City of Santa Clarita, Administrative Services Department - Finance Division
245
23920 Valencia Blvd.
Suite 300
Santa Clarita, CA 91355
santa-clarita.com
December 21, 2023
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of
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, 2023 and the Statements of Revenues, Expenditures and
Change in Fund Balance for the years ended June 30, 2023, 2022, and 2021. 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 10, 2023. 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 Subscription-Based Information Technology
Arrangements. No other new accounting policies were adopted and the application of existing policies was not
changed during 2023. 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
bout 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
et value is based on information provided by U.S.
Bank, the custodian of the investments based on interactive data. We evaluated the methods,
assumptions and data used to develop the investment fair market value in determining that it is
reasonable in relation to the financial statements taken as a whole.
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.
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
ilities is based on the actuarial valuation on
total pension liability and based on audited financial statements on fiduciary net position for
CalPERS 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.
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:
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
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 si
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, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
. If a consultation involves application of an accounting
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.
To the Honorable Mayor, and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
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 Cese 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 Mana
Schedules, the Schedules of Changes in Net Pension Liability and
Pensions, the Schedules of Changes in Net OPEB Liability
Other Postemployment Benefits, which are Required Supple
financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the
information and comparing the informa 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 RSI. With respect to this supplementary information, we made certain inquiries of
management and evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our
audit of the financial statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial
statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of
the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the 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,
Santa Ana, California
City of Santa Clarita
Santa Clarita, California
Applying Agreed-Upon Procedures to
Appropriations Limit Schedule
For the Year Ended June 30, 2023
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Santa Clarita
Santa Clarita, California
We have performed the procedures enumerated below on the appropriation limit schedule of the City of Santa Clarita,
. ponsible 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, 2023, 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
adjustments, and agreed the resulting
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.
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.
Santa Ana, California
October 19, 2023
2
City of Santa Clarita
Appropriations Limit Schedule
For the Year Ended June 30, 2023
AmountSource
A.Appropriations Limit FY 2021-2022471,334,679$ Prior year appropriations limit
adopted by the City
B.Calculation Factors:
1)Population increase % 1.0033 California Department of Finance
2)Inflation increase %1.0755 California Department of Finance
3)Total adjustment %1.0790 (B1 x B2)
C.Annual Adjustment Increase37, {(B3-1) x A}258,605
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 Adjustments37,258,605 (C + D)
F.Appropriations Limit FY 2022-2023508,593,284$ (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, 2023
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.
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.
A California governmental agency may use as its population factor either the annual percentage change of the
ange in population of the county where the jurisdiction
is located. The factor adopted by the City for the year ended June 30, 2023, represents the annual percentage
change in population for the City.
th
A California governmental agency may use as its inflation factor either the annual percentage change in the 4
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, 2023, represents the annual percentage
change for per capita personal income.
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, 2023.
4
Air Quality Improvement
Special Revenue Fund
of the City of Santa Clarita
Santa Clarita, California
Financial Statements
For the Year Ended June 30, 2023
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
For the Year Ended June 30, 2023
Table of Contents
Page
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:
Balance Sheet ........................................................................................................................................................ 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
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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
We have audited the accompanying financial statements of the Air Quality Improvement Special Revenue Fund (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, 2023, 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
Government Auditing Standards issued by the
Comptroller General of the United States (). Our responsibilities under those
ilities 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, 2023, 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 Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America, 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.
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to
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
ngly, 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
Revenues, Expenditures, and Change in Fund Balance - Budget and Actual is presented for purposes of additional
analysis and is 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.
2
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, 2023, on our
l 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
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
rol over financial reporting and compliance.
Santa Ana, California
December 21, 2023
3
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4
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and 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 (), the financial statements of the Air Quality
the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon
dated December 21, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statem
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
Accordingly, we do not express an opinion on the
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 or significant deficiencies may exist that were not
identified.
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 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, 2023
6
REPORT ON COMPLIANCE FOR AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND;
AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
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 Clarwith the type of compliance
requirements described in the Assembly Bill 2766, Chapter 1705 (44220 throug
ended June 30, 2023.
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, 2023.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
cable to financial audits contained in Government Auditing Standards
issued by the Comptroller Ge); and AB 2766. Our
responsibilities under those standards and AB 2766 are further described in the Aud
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 of Management for 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 AB 2766
programs.
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
r 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, Government Auditing 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
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 were not identified.
8
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 requirements of AB 2766. Accordingly, this report
is not suitable for any other purpose.
Santa Ana, California
December 21, 2023
9
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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, 2023
ASSETS
Cash and investments$ 480,285
Interest receivable1,811
Due from South Coast Air Quality Management District76,320
Total assets$ 558,416
FUND BALANCE
Fund Balance:
Restricted $ 558,416
Total fund balance$ 558,416
See accompanying Notes to the Financial Statements.
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, 2023
Revenues:
Assembly Bill 2766 revenues$ 302,074
Investment loss (993)
Total revenues 301,081
Expenditures:
Current:
Administrative5,775
Air Quality Improvement Program22,412
Total expenditures 28,187
Net change in fund balance 272,894
Fund Balance:
Beginning of year285,522
End of year$ 558,416
See accompanying Notes to the Financial Statements.
14
Air Quality Improvement Special Revenue Fund
of the City of Santa Clarita
N otes to the Financial Statements
For the Year Ended June 30, 2023
mary of Significant Accounting Policies
A. Financial Reporting Entity
The financial statements of the Air Quality Improvement
ance with accounting principles generally accepted in 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
in the Fund. AB 2766 authorizes the South Coast Air Quality
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
current financial resources
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, 2023
D. Cash and Investments
Treasurer is responsible for the cash management of th
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
und 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.
which is reported at the amortized cost. The Fund does not
own specifically identifiable secur allocated based on average cash balances.
Investment policies and associated risk factors applicable to
l Comprehensive Financial Report for related disclosures for
cash and investments.
r Quality Management District
The SCAQMD collects revenues from annual vehicle registration fees and allocates a percentage of the revenues
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, 2023
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 term
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, 2023
Variance with
get
Final Bud
Actua
Budget AmountslPositive
Original FinalAmounts(Negative)
Revenues:
Assembly Bill 2766 revenues289,000$ 289,000$ 302,074$ 13,074$
Investment income (loss)3,6853,685(993) (4,678)
s 292,685292,685 301,081 8,396
Total revenue
Expenditures:
Current:
Adminstrative7,9577,9575,775 2,182
Air Quality Improvement Program254,300270,67422,412 248,262
penditures 278,631262,257 28,187 250,444
Total ex
Net change in fund balance30,428$ 14,054$ 272,894 258,840$
Fund Balance:
Beginning of year 285,522
End of year$ 558,416
21
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22
Open Space Preservation District
Special Revenue Fund
of the City of Santa Clarita
Santa Clarita, California
Financial Statements
For the Year Ended June 30, 2023
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
For the Year Ended June 30, 2023
Table of Contents
Page
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
Financial Statements:
Balance Sheet ..................................................................................................................................................... 9
Statement of Revenues, Expenditures and Change in Fund Balance ............................................................... 10
Notes to the Financial Statements .................................................................................................................... 11
Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ............................. 15
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 Open Space Preservation District Special Revenue Fund
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, 2023, 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
Government Auditing Standards issued by the
Government Auditing Standards
standards are further described in the Au
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 Fund and do not purport to,
and do not, present fairly the financial position of the City as of June 30, 2023, 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 Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America, 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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to
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
ngly, 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
Revenues, Expenditures, and Change in Fund Balance - Budget and Actual is presented for purposes of additional
analysis and is 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.
2
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, 2023, on our
l 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
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
rol over financial reporting and compliance.
Santa Ana, California
December 21, 2023
3
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4
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and 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 (), the financial statements of the Open Space Preservation
ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated
December 21, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statem
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
Accordingly, we do not express an opinion on the
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 or significant deficiencies may exist that were not identified.
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 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, 2023
6
FINANCIAL STATEMENTS
7
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8
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Balance Sheet
June 30, 2023
ASSETS
Cash and investments$ 6,893,812
Receivables:
Interest25,991
Taxes49,421
Total assets$ 6,969,224
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities$ 50,379
Total liabilities 50,379
Fund Balance:
Restricted for Open Space Preservation 6,918,845
e 6,918,845
Total fund balanc
Total liabilities and fund balance$ 6,969,224
See accompanying Notes to the Financial Statements.
9
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, 2023
Revenues:
Special assessments$ 3,189,455
Charges for services12,272
Investment income84,357
Other revenue1,500
s 3,287,584
Total revenue
Ex
penditures:
Current:
Open space preservation784,552
Capital outlay1,615,794
penditures 2,400,346
Total ex
Excess of revenues over expenditures 887,238
Other Financing (Uses):
Transfers to the City(803,606)
Net change in fund balance 83,632
Fund Balance:
Beginning of year6,835,213
End of year$ 6,918,845
See accompanying Notes to the Financial Statements.
10
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Notes to the Financial Statements
For the Year Ended June 30, 2023
A. Financial Reporting Entity
the Landscape and Lighting Act of 1972, being Part 2 of
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
es 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
ith accounting principles generally accepted in the United
a Special Revenue Fund of the City. The Governmental
d 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.
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
treasurer is responsible for the cash management of th
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.
11
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, 2023
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
und 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.
which is reported at the amortized cost. The Fund does not
own specifically identifiable secur allocated based on average cash balances.
Investment policies and associated risk factors applicable to
l Comprehensive Financial Report for related disclosures for
cash and investments.
s of the City of Santa Clarita
Authority Debt Service Fund in the amount of $803,606 for
current year debt service payments for the Lease Revenue Bond Series 2016B. As of June 30, 2023, $11,575,000 was
outstanding. Revenues from the Fund are pledged for repayment of the bonds, but the City is not obligated to require
additional amounts from the Fund in event the revenues of the fund are insufficient for bond repayment. Additional
information regarding the Lease Revenue Bond Series 2016B
Financial Report.
12
SUPPLEMENTARY INFORMATION
13
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14
Open Space Preservation District Special Revenue Fund
of the City of Santa Clarita
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual
For the Year Ended June 30, 2023
Variance with
get
Final Bud
Actua
Budget AmountslPositive
Original FinalAmounts(Negative)
Revenues:
Special assessments3,114,941$ 3,114,941$ 3,189,455$ 74,514$
Charges for services85,627 85,627 12,272 (73,355)
Investment income96,674 96,674 84,357 (12,317)
Other revenue- - 1,500 1,500
s 3,297,2423,297,242 3,287,584 (9,658)
Total revenue
Ex
penditures:
Open space preservation:
Operating:
Personnel577,138434,967394,744 40,223
Operations and maintenance451,216534,216389,808144,408
Capital outlay68,4451,684,8371,615,79469,043
Total expenditures 2,654,0201,096,799 2,400,346 253,674
Excess of revenues over expenditures 643,2222,200,443 887,238 244,016
Other Financing Uses:
Transfers to the City(803,606) (803,606) (803,606) -
Net change in fund balance$ (160,384)1,396,837$ 83,632 244,016$
Fund Balance:
Beginning of year 6,835,213
End of year$ 6,918,845
15
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16
City of Santa Clarita
Santa Clarita, California
Single Audit and
For the Year Ended June 30, 2023
City of Santa Clarita
For the Year Ended June 30, 2023
Table of Contents
Page
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
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and 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
Government Auditing Standards ts of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of
ended June 30, 2023, and the related notes to the financial
statements, which collectively comprise
dated December 21, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the C
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
rnal control. Accordingly, we do not express an opinion
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
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 or significant deficiencies may exist that not
identified.
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
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 entit
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
other purpose.
Santa Ana, California
December 21, 2023
2
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and 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
ith the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
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, 2023.
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
cable to financial audits contained in Government Auditing Standards,
Government Auditing Standards
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards
standards and the Uniform Guidance are further described in the Audito
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
with the compliance requirements referred to above.
Responsibilities of Management for 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 Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred,
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
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 Cityments referred to above and performing
such other procedures as we considered necessary in the circumstances.
r 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
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 d
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 were not identified.
4
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, 2023, and the related
notes to the financial statements, which financial statements. We issued our
report thereon dated December 21, 2023, 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, 2023
5
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6
City of Santa Clarita
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2023
AssistanceAgency or
Federal Grantor/Pass-Through ListingPass-ThroughFederalExpenditures
Grantor Program TitleNumberNumberExpendituresto Subrecipients
U.S. Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster
Direct Programs:
Community Development Block Grants/Entitlement Grants14.218B-18-MC-06-0576
$ 391,573 $ -
Community Development Block Grants/Entitlement Grants14.218B-19-MC-06-0576
355,069 -
Community Development Block Grants/Entitlement Grants14.218B-20-MC-06-0576
475,234 -
Community Development Block Grants/Entitlement Grants14.218B-21-MC-06-0576
250,000 250,000
Community Development Block Grants/Entitlement Grants14.218B-22-MC-06-0576
643,657 325,152
COVID-19 - Community Development Block Grants/Entitlement
Grants - CARES Act14.218B-20-MW-06-0576
137,921 117,921
Total CDBG - Entitlement Grants Cluster 693,0732,253,454
693,0732,253,454
Total U.S. Department of Housing and Urban Development
U.S. Department of Justice
Direct Program:
m16.73815PBJA-21-GG-01191-JAGX2,080 -
Edward Byrne Memorial Justice Assistance Grant Progra
Edward Byrne Memorial Justice Assistance Grant Program16.73815PBJA-22-GG-02609-JAGX15,079 -
Total Edward Byrne Memorial Justice Assistance Grant Program -17,159
-17,159
Total U.S. Department of Justice
U.S. Department of Transportation
Pass-through the State of California Department of Transportation:
Highway Planning and Construction (Federal-Aid Highway Program)20.205HSIPL-5450(094)585,333 -
Highway Planning and Construction (Federal-Aid Highway Program)20.205BHLS-5450(101)583,030 -
Highway Planning and Construction (Federal-Aid Highway Program)20.205STPL-5450(102)207,875 -
Highway Planning and Construction (Federal-Aid Highway Program)20.205HSIPL-5450(105)184,734 -
Total Highway Planning and Construction (Federal-Aid Highway Program)1,560,972 -
Federal Transit Cluster
Direct Programs:
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-90-Y276-02389,065 -
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-2017-138-00675,750 -
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-2018-089-001,465,787 -
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-2019-125-002,389,996
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-2021-138-0099,935 -
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-2021-193-0095,939 -
Federal Transit - Formula Grants (Urbanized Area Formula Program)20.507CA-2022-125-00860,108 -
Total Federal Transit Cluster -5,976,580
-7,537,552
Total U.S. Department of Transportation
U.S. Department of the Treasury
Direct Programs:
COVID-19 - Emergency Rental Assistance Program21.0231505-02664,500 -
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds21.0271505-02718,784,745 -
-8,789,245
Total U.S. Department of the Treasury
$ 693,07318,597,410$
Total Expenditures of Federal Awards
7
City of Santa Clarita
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2023
The financial reporting entity, as defined by the Governme
consists of the primary government, whic
which the primary government is financially accountable, and other organizations for which the nature and
significance of their relationship with the primary governme
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
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
d in accordance with the requirements of Title 2 U.S.
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards some amounts presented in the Schedule
may differ from amounts presented in, or used in, the pr
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 Department of Transportation, 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.
8
City of Santa Clarita
Notes to the Schedule of Expenditures of Federal Awards (Continued)
For the Year Ended June 30, 2023
During the year ended June 30, 2023, the City has the following subrecipients:
AssistanceAmount Provided
Listing NumberProgram Name / Subrecipient Nameto Subrecipients
14.218Community Development Block Grants / Entitlement Grants:
Handyworker / Santa Clarita Valley Senior Center 373,290$
Project Special Children of the Valley / Carousel Ranch Inc.10,508
Ready to Work/Carousel Ranch Inc.9,838
Comprehensive Mental Health / Single Mothers Outreach24,992
Household Support / Family Promise of Santa Clarita36,000
Case Management / Fostering Youth Independence29,688
Homeless Intake and Assessment / Bridge To Home42,765
Provide a Handup / The Salvation Army9,798
Community Access / Santa Clarita Valley Committee on Aging40,273
COVID-19 - Community Development Block Grants / Entitlement Grants - CARES Act:
Household Support / Family Promise of Santa Clarita34,000
Study Place Program / Fostering Youth Independence19,751
COVID-19 Childcare Scholarship / Boys & Girls Club26,500
Childcare Scholarships / Santa Clarita Valley YMCA35,670
$ 693,073
9
City of Santa Clarita
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2023
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
liance 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 ListingFederal
NumbersMajor Federal Program or ClusterExpenditures
14.218CDBG - Entitlement Grants Cluster$ 2,253,454
21.027COVID-19 - Coronavirus State and Local Fiscal Recovery Funds8,784,745
Total Expenditures of All Major Federal Programs$ 11,038,199
$ 18,597,410
Total Expenditures of Federal Awards
Percent of Total Expenditures of Federal Awards 59.35%
Dollar threshold used to distinguish between type A and type B programs: $750,000
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, 2023
A.
No current year findings were reported.
B.
No prior year findings were reported.
11
City of Santa Clarita
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2023
A. Current Year Findings and Questioned Co
No current year findings were reported.
B. Prior Year Findings and Questioned Cost
No prior year findings were reported.
12
Transit Enterprise Fund
of the City of Santa Clarita
Santa Clarita, California
and Financial Statements
For the Year Ended June 30, 2023
Transit Enterprise Fund of the City of Santa Clarita
For the Year Ended June 30, 2023
Table of Contents
Page
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
Financial Statements:
Statement of Net Position ...................................................................................................................................... 9
Statement of Revenues, Expenses and Changes in Fund Net Position ................................................................ 10
Statement of Cash Flows ..................................................................................................................................... 11
Notes to the Financial Statements ........................................................................................................................ 13
Required Supplementary Information (Unaudited):
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios .............................................. 30
........................ 32
Schedule of Proportionate Share of the Net Other Postemployment
ility and Related Ratios ........................................................................................... 35
her Postemployment Benefits ............................................................................. 36
i
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ii
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 financia
ended June 30, 2023, 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, 2023, 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
to financial audits contained in Government Auditing Standards issued by the
Government Auditing Standards
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, 2023, 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 Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America, 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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
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 issu
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
ngly, 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 Contributi Proportionate Share of the
Benefits 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 consis 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.
ysis 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.
2
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, 2023, on our
l 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
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
Santa Ana, California
December 21, 2023
3
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4
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and 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
Government Auditing Standards
related notes to the financial statements, and have issued our report thereon dated December 21, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered
sis 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
al control. Accordingly, we do not express an opinion on
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 or significant deficiencies 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 2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Transit 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, 2023
6
FINANCIAL STATEMENTS
7
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8
Transit Enterprise Fund of the City of Santa Clarita
Statement of Net Position
June 30, 2023
ASSETS:
Current assets:
Pooled cash and investments$ 10,796,457
Accounts receivable 11,042
Interest receivable 41,280
Due from other governments 4,613,999
Prepaid items 21,686
Total current assets 15,484,464
Noncurrent assets:
Nondepreciable assets 31,021,805
Depreciable assets, net 65,670,886
Total capital assets 96,692,691
Net other postemployment benefits asset 123,020
Total noncurrent assets 96,815,711
Total assets 112,300,175
DEFERRED OUTFLOWS OF RESOURCES:
Pension related 1,085,956
Other postemployment benefits related 205,250
Total deferred outflows of resources 1,291,206
LIABILITIES:
Current liabilities:
Accounts payable 3,446,034
Accrued payroll 27,961
Compensated absences - due within one year 53,926
Total current liabilities 3,527,921
Noncurrent liabilities:
Compensated absences - due in more than one year 82,730
Net pension liability 1,363,159
Total noncurrent liabilities 1,445,889
Total liabilities 4,973,810
DEFERRED INFLOWS OF RESOURCES:
Pension related 69,320
Other postemployment benefits related 523,520
Total deferred inflows of resources 592,840
NET POSITION:
Investment in capital assets 96,692,691
Unrestricted 11,332,040
Total net position$ 108,024,731
See accompanying Notes to the Financial Statements.
9
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, 2023
OPERATING REVENUES:
Metrolink and EZ pass revenues$ 58,293
Fixed-route passenger fares 1,605,641
s94,864
Dial-A-Ride passenger fare
County of Los Angeles operating assistance 2,533,640
Specialized transit services 2,207,220
Miscellaneous revenues803,262
Total operating revenues 7,302,920
OPERATING EXPENSES:
Salaries and benefits 1,429,367
s 1,873,211
Administrative service
Contract transportation services 21,304,588
FTA funded non-capitalized projects 1,078,763
Insurance 168,804
Supplies, utilities and other 3,567,768
Depreciation 6,084,070
perating expenses 35,506,571
Total o
OPERATING (LOSS) (28,203,651)
NONOPERATING REVENUES:
Proposition A Discretionary 5,035,631
Proposition A Specialized Transportation 1,933,689
Proposition C Expansion 213,483
Proposition C BSIP 55,413
Proposition C Transit Mitigation 24,953
Proposition C Security Allocation 319,501
Measure R Bus Operations 2,991,220
Measure M Bus Operations 2,986,530
SB1 State Transportation Assistance 652,603
t 960,043
CARES Ac
Investment income 13,527
Gain on disposal of capital assets 35,000
Total nonoperating revenues 15,221,593
INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (12,982,058)
CAPITAL CONTRIBUTIONS:
Federal Transit Administration capital grants 5,016,536
Proposition C MOSIP 1,030,836
Measure R Regional 2,060,030
Total contributions 8,107,402
TRANSFERS:
Transfers in from the City 8,538,444
Transfers out to the City (153,690)
Total transfers 8,384,754
Change in net position 3,510,098
NET POSITION:
Beginning of year 104,514,633
End of year$ 108,024,731
See accompanying Notes to the Financial Statements.
10
Transit Enterprise Fund of the City of Santa Clarita
Statement of Cash Flows
For the Year Ended June 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users$ 6,564,911
Cash payments to suppliers for goods and services (29,560,366)
Cash payments to employees (1,466,025)
Cash received from other sources 803,262
Net cash (used in) operating activities (23,658,218)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in from the City 8,538,444
Transfers out to the City (153,690)
Federal and state funding received 17,783,728
Net cash provided by noncapital financing activities 26,168,482
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital contributions 8,107,402
Acquisition of capital assets (7,179,440)
Proceeds from sale of capital assets 35,000
Net cash provided by capital and related financing activities 962,962
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment loss (13,979)
Net cash (used in) investing activities (13,979)
Net change in cash and cash equivalents 3,459,247
CASH AND CASH EQUIVALENTS:
Beginning of year 7,337,210
End of year$ 10,796,457
RECONCILIATION OF OPERATING (LOSS) TO NET CASH
(USED IN) OPERATING ACTIVITIES:
Operating (loss)$ (28,203,651)
Adjustments to reconcile operating (loss) to net cash
(used in) operating activities:
Depreciation 6,084,070
Changes in operating assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
(Increase) decrease in accounts receivable 65,253
(Increase) decrease in prepaid items (18,152)
Increase (decrease) in accounts payable (1,549,080)
Increase (decrease) in accrued payroll 6,558
Increase (decrease) in compensated absences (6,109)
Increase (decrease) in pension and pension related deferred outflows and inflows of resources(7,034)
Increase (decrease) in OPEB and OPEB related deferred outflows and inflows of resources(30,073)
Net cash (used in) operating activities$ (23,658,218)
See accompanying Notes to the Financial Statements.
11
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12
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements
For the Year Ended June 30, 2023
A. Description of the Financial Reporting Entity
The financial statements of the Transit Enterprise Fund (the
e 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
tary activities of governmental units. The Governmental
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.
economic resources
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 only charges to customers for the service provided (bus fares). 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
her City funds for deposit and investment purposes. The
deposits, and short-term investments with original maturity of three months or less from the date of acquisition, and
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.
13
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
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:
AssetsYears
Site improvements5 to 25
Building an improvements5 to 50
Equipment5 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 assets that applies 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 of Resources represent an acquisition of net assets that applies to future periods. The Transit Fund
reports deferred gain related to pension and other postemployment benefits in this category.
14
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
I. Compensated Absences
Liability is reported for unused vacation and comp time off leave balances since the em
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 th
purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of the California Public Employees Retirement System
(CalPERS) plan and additions to/deducition have been determined on the same
basis as they are reported by CalPERS. For this purpose, benefit payments are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
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
een 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, 2021
Measurement Date:June 30, 2022
Measurement Period:July 1, 2021 to June 30, 2022
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.
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 pos
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.
15
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
K.
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, 2022
Measurement Date:June 30, 2023
Measurement Period:July 1, 2022 to June 30, 2023
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. 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 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
M. 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.
16
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
at June 30, 2023 was in the amount of $10,796,457.
investment pool, which is reported at the amortized cost. The Transit Fund does
not own specifically identifiable securities inallocated based on average cash balances.
Investment policies and associated risk factors applicable to the Transit Fund are those of the City and are included in
Financial Report for related
disclosures for cash and investments.
Due from other governments consists of the following at June 30, 2023:
Agency Amount
Los Angeles County709,114$
Federal Government440,929
Federal Transit Administrator132,658
Other Agencies3,331,298
$ 4,613,999
Total
Due from other governments relate to various program support revenues received from other governments in support of
transit operations and programs.
Changes in capital assets of the Fund at June 30, 2023, consisted of the following:
BalanceBalance
July 1, 2022AdditionsDeletionsReclassificationJune 30, 2023
Capital assets, not being depreciated:
Land and right of way15,087,880$ -$ -$ -$ 15,087,880$
Construction in progress14,121,301 2,893,135 - (1,080,511) 15,933,925
2,893,13529,209,181 - (1,080,511) 31,021,805
Total capital assets, not being depreciated
Capital assets, being depreciated:
Site improvement12,941,276 - - - 12,941,276
Building improvements45,601,926 - - 1,080,511 46,682,437
Equipment68,798,721 4,286,305 (3,991,323) - 69,093,703
4,286,305127,341,923 (3,991,323) 1,080,511 128,717,416
Total capital assets, being depreciated
Less accumulated depreciation for:
Site improvement(6,104,695) (568,221) - - (6,672,916)
Building improvements(16,446,532) (983,291) - - (17,429,823)
Equipment(38,402,556) (4,532,558) 3,991,323 - (38,943,791)
Total accumulated depreciation (6,084,070)(60,953,783) 3,991,323 - (63,046,530)
(1,797,765)66,388,140 - 1,080,511 65,670,886
Total capital assets, being depreciated, net
$ 1,095,37095,597,321$ -$ -$ 96,692,691$
Total capital assets, net
17
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
A. General Information about the Pension Plan
Plan Description
All qualified permanent, probationary
Miscellaneous Pension Plan, an agent multiple-employer defined benefit pension plan administered by the
administrative agent for its participating member employers. The employees are participants in the Miscellaneous
Plan of the City. For financial reporting purposes, the Tr
collective net pension liability, pension expense, and deferred inflows and outflows of resources. Accordingly, the
disclosures and required supplementary information have been reported for the Transit Fund as a cost sharing
participant. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues
publicly available reports that include a full description of the pension plans regarding benefit provisions,
assumptions and membership information that can be found on the CalPERS website.
The Plan's provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous
Tier 1Tier 2Tier 3
Benefit formula2.7% @ 552% @ 602% @ 62
Benefit vesting schedule5 years of service5 years of service5 years of service
Benefit paymentsMonthly for lifeMonthly for lifeMonthly for life
Retirement age50-5550-6052-62
Required employee contribution rates 8.000%7.000%6.250%
Required employer contribution during measurement perio8.850%8.850%8.850%
Applies to:Employees hired Employees hired betweenEmployees hired
before April 9, 2011April 9, 2011 andJanuary 1, 2013 or
December 31, 2012 or later
those hired January 1,
2013, or later , who
have been a classic
CalPERS 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.
Contributions
ement law requires that the employer contribution rates
for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1
following notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial
basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the
costs of benefits earned by employees during the year. 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.
18
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023 were $320,601.
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 June 30, 2021 valuation for the Card to determine the June 30, 2022
total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost MethodEntry Age Normal
Actuarial Assumptions:
Discount Rates6.90%
Inflation2.300%
Salary IncreasesVaries by Entry Age and Service
1
Derived using CalPERS's Membership Data for all Funds.
Mortality Rate Table
Post Retirement Benefit IncreaseThe lesser of contract COLA or 2.30% until Purchasing Power
1
ThemortalitytableusedwasdevelopedbasedonCalPERS-specificdata.Theprobabilitiesofmortalityarebasedonthe
2021CalPERSExperienceStudyfortheperiodfrom2001to2019.Pre-retirementandPost-retirementmortalityratesinclude
15yearsofprojectedmortalityimprovementusing80%ofScaleMP-2020publishedbytheSocietyofActuaries.Formore
detailsonthistable,pleaserefertotheCalPERSExperienceStudyandReviewofActuarialAssumptionsreportfrom
November 2021 that can be found on the CalPERS website.
Change of Assumption
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced
from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term
market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes
are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long
term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In
addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021
CalPERS Experience Study and Review of Actuarial 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, CalPERS took into account both short-term and long-term
market return expectations. Using historical returns of
returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then
adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset
class are as follows:
19
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
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)
Assumed Asset
11, 2
Asset ClassAllocationReal Return
Global Equity Cap-weighted30.00%4.54%
Global Equity Non-cap-weighted12.00%3.84%
Private Equity13.00%7.28%
Private Debt5.00%3.57%
Emerging Market Sovereign Bonds5.00%2.48%
High Yield Bonds5.00%2.27%
Investment Grade Corporates10.00%1.56%
Mortgage-backed Securities5.00%0.50%
Treasuries5.00%0.27%
Real Assets15.00%3.21%
Leverage-5.00%-0.59%
100.00%
1
An expected inflation of 2.30% used for this period.
2
Figures are based on 2021 Asset Liability Management Study
Discount Rate
The discount rate used to measure the total pension liability was 6.90 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
made at rates equal to the difference between actuarially
determined contributions rates and the employee rate.
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 of Net Pension Liability and Pension Expense
share of the risk pool collective net pension liability
over the measurement period:
Increase (Decrease)
Total PensionPlan Fiduciary NetNet Pension
LiabilityPositionLiability/(Asset)
(a)(b)(c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date)8,512,373$ 8,527,588$ (15,215)$
Balance at June 30, 2022 (Measurement Date)9,326,982 7,963,823 1,363,159
Net changes during 2021-22814,609$ (563,765)$ 1,378,374$
20
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued)
(asset) was based on actual contributions paid by the
paid for the Miscellaneous Plan, as determined by the City.
Measurement Date
June 30, 20213.51435%
June 30, 20223.51435%
Change - Increase (Decrease) 0.00000%
Net Pension Liability to Changes in the Discount Rate
The following presents the Transit Fund
using the discount rate for the Plan, as well as what the Trane 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 DiscountDiscount Rate
Measurement Date
- 1% (5.90%)Rate (6.90%)+ 1% (7.90%)
June 30, 20222,798,181$ 1,363,159$ 196,679$
Pension Plan Fiduciary Net Position
iary net position is available in the separately issued CalPERS financial
website under Forms and Publications.
Pension Expense and Deferred Outflows and Inflows of Resources
For the year ended June 30, 2023, the Transit Fund recognized pension expense of $313,590.
At measurement date June 30, 2022, the Transit Fund reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Contribution made after the measurement date320,601$ -$
Difference between expected and actual experience59,561 (69,320)
Changes in assumption297,223 -
Net difference between projected and actual earning on
pension plan investments408,571 -
Total$ (69,320)1,085,956$
21
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
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)
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 2021-22 measurement period is 4.5 years, which was obtained by dividing the total service years of
5,489 (the sum of remaining service lifetimes of the active employees) by 1,217 (the total number of participants:
active, inactive, and retired).
$320,601 deferred outflows of resources related to pensions resulting from th
subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the
year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Deferred Outflows/(Inflows) of Resources
Measurement Period
Ending June 30,Miscellaneous Plan
2023171,092$
2024142,449
2025101,507
2026280,987
2027-
Thereafter -
$ 696,035
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
ll amounts and disclosures are presented on a cost-sharing
perspective where the Transit Fund is a participant in thils are provided on the plan
22
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
A. General Information about the OPEB Plan (Continued)
Benefits Provided
At retirement, the City contributes a flat monthly rate of $151 for those employees who retire under the PERS
retirement system, subscribe to the PERS Health Insurance System, and have at least five years of CalPERS service,
in accordance with Government Code. This is a perpetual benefit which is available to all PERS retirees including
eligible dependents of deceased retirees. In addition, the City also contributes up to $1,017 to the monthly premium
for health insurance for various employee groups, depending on hire date, total years of service to the City, and the
applicable employee bargaining unit. City employees who have a service retirement from the City at age 50 with
five or more years of City service are eligible to receive post-employment medical benefits. Employees who have a
disability retirement are also eligible. The benefit for employees hired before January 1, 2008 is up to $1,017 per
month. The maximum benefit will be adjusted when the lowest cost employee rate, plus one, exceeds $1,017. No
minimum years of service were required for the unrepresented employees hired before January 1, 2008 and retired
before January 1, 2012 and represented employees hired before January 1, 2008 and retired after January 1, 2012
and before January 1, 2014. For employees hired before January 1, 2008 the following vesting applies:
Years of ServiceVested Percentage
0 to 4 years0%
5 to 9 years50%
10 to 14 years75%
15 years and greater100%
Funding Policy
l 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, 2023, the Transit
Funds proportionate share of cash contribution was $0 to the Plan and the estimated implied subsidy was in the
amount of $6,073, resulting in total contribution of $6,073.
23
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2022 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost MethodEntry Age Normal
Actuarial Assumptions:
Actuarial Valuation Date June 30, 2022
Contribution PolicyPre-fund cash benefit ADC with PARS Balanced Fund
Implied subsidy benefit on pay-as-you-go basis
Discount Rate and Long-Term Expected Rate
of Return6.00% at June 30, 2023 and 6.25% at June 30, 2022
ExpectedCitycontributionsprojectedtokeepsufficientplan
assets to pay all benefits from trust
Inflation2.50% annually
Mortality, Retirement, Disability, TerminationCalPERS 2000-2019 Experience Study
Mortality ImprovementPost-retirementmortalityprojectedfullygenerationalwithScale
MP-2021
Salary IncreasesAggregate - 2.75% annually
Medical TrendNon-Medicare - 8.50% for 2024, decreasing to an ultimate rate of
3.45% in 2076; Medicare (Non-Kaiser) - 7.50% for 2024,
decreasingtoanultimaterateof3.45%in2076;Medicare
(Kaiser)-6.25%for2024,decreasingtoanultimaterateof
3.45% in 2076
PEMHCA Minimum Increases3.50% annually
Participation at Retirement Hired < 1/1/08 - 95%
Hired > 1/1/08 - 60%
Waived Retirees Reelection5% re-elect at 65 for pre-65
Cap IncreaseNo increase in $1,016.58 cap; Medical trend for EE+1 cap
Changes of Assumptions
The discount rate was changed from 6.25% at June 30, 2022 to 6.00% at June 30, 2023.
24
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on plan investments was determined using a building-block method in which
best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense
and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected
rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. The long-term expected real rates of return are presented as geometric means. The target
asset allocation and most recent best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset ClassTarget AllocationExpected Real
Global Equity60.00%4.56%
Fixed Income35.00%0.78%
Cash 5.00%-0.50%
100.00%
Assumed Long-Term Rate of Inflation2.50%
Expected Long-Term Net Rate of Return, Rounded6.00%
Discount Rate
The discount rates used to measure the total OPEB liability was 6.00%.
Proportionate Share of Net OPEB Liability
of the net OPEB liability (asset) over the measurement
period:
Increase (Decrease)
Total OPEBPlan Fiduciary NetNet OPEB
LiabilityPositionLiability/(Asset)
(a)(b)(c) = (a) - (b)
Balance at June 30, 20221,007,777$ 1,057,489$ (49,712)$
Balance at June 30, 2023 (Measurement Date)998,490 1,121,510 (123,020)
Net changes during 2022-23(9,287)$ 64,021$ (73,308)$
based on actual contributions paid by the Transit Fund in
of the net OPEB asset was as follows:
Measurement Date
June 30, 20222.40%
June 30, 20232.40%
Change - Increase (Decrease) 0.00%
25
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
the Net OPEB Asset to Changes in the Discount Rate
The following presents the Tran
discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Plan's Net OPEB Liability/(Asset)
Discount RateCurrent DiscountDiscount Rate
Measurement Date- 1% '(5%)Rate (6%)+ 1% (7%)
June 30, 202310,921$ (123,020)$ (234,339)$
are of the net OPEB asset, as well as what the Transit
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, 2023:
Plan's Net OPEB Liability/(Asset)
Measurement Date1% DecreaseCurrent Trend1% Increase
June 30, 2023(254,906)$ (123,020)$ 39,036$
OPEB Plan Fiduciary Net Position
Detailed information about the pensi
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 ($24,000).
At June 30, 2023, the Fund reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Difference between expected and actual experience-$ (240,954)$
Changes of assumptions152,630 (282,566)
Net difference between projected and actual earnings
on plan investments52,620 -
Total$ (523,520)205,250$
26
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2023
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
2024(49,823)$
2025(55,549)
2025(13,400)
2027(62,945)
2028(42,964)
Thereafter(93,589)
$ (318,270)
Changes in compensated absences of the Fund at June 30, 2023, consisted of the following:
BalanceBalanceDue withinDue in More
July 1, 2022AdditionsDeletionsJune 30, 2023One YearThan One Year
Compensated absences142,765$ 47,817$ (53,926)$ 136,656$ 53,926$ 82,730$
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 $3,302,578 were reported as part of supplies, utilities, and other operating expenses
for the year ended June 30, 2023.
During the year ended June 30, 2023, the City of Santa Clarita transferred $2,462,730, $6,074,505 and $1,209 from the
Funds, respectively, to support the allowable transit
operation. The Transit Fund transferred $153,690 to the City of Santa Clarita, $150,000 was to support the senior center
transit operations and $3,690 for the proportional share of Metrolink station maintenance.
27
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28
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
29
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS")
Measurement DateJune 30, 2022June 30, 2021June 30, 2020June 30, 2019
Proportion of the Net Pension Liability3.51435%3.51435%3.51435%3.51435%
Proportionate Share of
the Net Pension Liability (Asset)1,363,159$ (15,215)$ 1,220,809$ 1,367,413$
Covered Payroll1,277,951$ 1,255,802$ 1,225,894$ 1,173,778$
Proportionate Share of the Net Pension
Liability as a Percentage of the Covered Payroll106.67%-1.21%99.59%116.50%
Proportionate Share of the Fiduciary Net
Position as a Percentage of the Total Pension Liability85.38%100.18%84.69%81.56%
1
HistoricalinformationispresentedonlyformeasurementperiodsafterGASB68implementationin2013-14.Additionalyearsofinformationwill
be displayed as it becomes available.
Notes to Schedule:
ChangesofAssumptions:EffectivewiththeJune30,2021valuationdate(2022measurementdate),theaccountingdiscountratewasreducedfrom
7.15%to6.90%.Indeterminingthelong-termexpectedrateofreturn,CalPERStookintoaccountlong-termmarketreturnexpectationsaswellas
theexpectedpensionfundcashflows.Projectedreturnsforallassetclassesareestimated,combinedwithriskestimates,andareusedtoproject
compound(geometric)returnsoverthelongterm.Thediscountrateusedtodiscountliabilitieswasinformedbythelong-termprojectedportfolio
return.Inaddition,demographicassumptionsandtheinflationrateassumptionwerechangedinaccordancewiththe2021CalPERSExperience
StudyandReviewofActuarialAssumptions.Theaccountingdiscountratewas7.15%formeasurementdates2017through2021,7.65%for
measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
30
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued)
For the Years Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS")
1
June 30, 2014
Measurement DateJune 30, 2018June 30, 2017June 30, 2016June 30, 2015
Proportion of the Net Pension Liability3.51435%3.51435%3.51419%3.51419%3.51419%
Proportionate Share of
the Net Pension Liability1,468,640$ 1,641,432$ 1,388,588$ 1,084,341$ 944,480$
Covered Payroll1,053,068$ 1,052,000$ 981,713$ 957,079$ 944,599$
Proportionate Share of the Net Pension
Liability as a Percentage of Its Covered Payroll139.46%156.03%141.45%113.30%99.99%
Proportionate Share of the Fiduciary Net
Position as a Percentage of the Total Pension Liability78.57%74.42%75.27%79.11%80.58%
1HistoricalinformationispresentedonlyformeasurementperiodsafterGASB68implementationin2013-14.Additionalyearsofinformationwill
be displayed as it becomes available.
31
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS")
Fiscal Year2022-232021-222020-212019-202018-19
Actuarially determined contribution250,337$ 228,804$ 217,547$ 222,244$ 198,133$
Contributions in relation to the
2
actuarially determined contribution
(297,419)(320,601) (394,284) (561,483) (439,293)
Contribution deficiency (excess)(70,264)$ (68,615)$ (176,737)$ (339,240)$ (241,161)$
3
Covered Payroll
$ 1,277,9511,313,733$ 1,255,802$ 1,196,042$ 1,109,265$
Contributions as a percentage of covered payroll24.40%23.27%31.40%46.95%39.60%
1
HistoricalinformationispresentedonlyformeasurementperiodsafterGASB68implementationin2013-14.Additionalyearsofinformationwill
be displayed as it becomes available.
2
Employersareassumedtomakecontributionsequaltotheactuariallydeterminedcontributions.However,someemployersmaychoosetomake
additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3
2018-22; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule:
TheactuarialmethodsandassumptionsusedtosettheactuariallydeterminedcontributionsforFiscalYear2021-22werederivedfromtheJune30,2019funding
valuation report.
Methods and assumptions used to determine contribution rates:
Actuarial cost methodEntry Age Normal Cost Method
Amortization methodLevel percentage of payroll
Asset valuation methodMarket value
Inflation2.50%
Salary increasesVaries by entry age and service
Payroll Growth2.75%
Investment rate of return7% net of pension plan investment expenses; includes Inflation.
Retirement ageThe probabilities of retirement are based on the 2017 CalPERS Experience study for the
period from 1997 to 2015
MortalityTheprobabilitiesofmortalityarebasedonthe2017CalPERSExperienceStudyfortheperiod
from1997to2015.Pre-retirementandPost-retirementmortalityratesinclude15yearsof
projectedmortalityimprovementusing90%ofScaleMP-2016publishedbytheSocietyof
Actuaries.
32
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS")
1
2013-14
Fiscal Year2017-182016-172015-162014-15
Actuarially determined contribution163,846$ 157,588$ 139,123$ 131,436$ 125,184$
Contributions in relation to the
2
actuarially determined contribution (157,588)(339,563) (139,129)$ (131,436) (125,184)
Contribution deficiency (excess)(175,718)$ -$ -$ -$ -$
3
Covered Payroll
$ 1,017,6461,030,631$ 1,004,503$ 984,582$ 944,599$
Contributions as a percentage of covered payroll32.95%15.49%13.85%13.35%13.25%
33
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34
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, 2023
Last Ten Fiscal Years
Retiree Healthcare Plan
1
June 30, 2018
Measurement DateJune 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019
Proportion of the Net OPEB Liability2.40%2.40%2.40%2.40%2.40%2.40%
Proportionate Share of
the Net OPEB Liability (Asset)(123,020)$ (49,718)$ (301,813)$ 400,077$ 146,648$ 247,416$
Covered-employee payroll 1,093,980$ 993,256$ 855,299$ 919,082$ 813,498$ 735,216$
Proportionate share of the net OPEB liability as
a percentage ofits covered-employee payroll
-11.25%-5.01%-35.29%43.53%18.03%33.65%
Proportionate Share of the Fiduciary Net Position
as a percentage of the total OPEB Liability112.30%104.90%131.67%71.67%87.12%79.08%
1
Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18.
Note to Schedule:
ChangesofAssumptions:Thediscountratewaschangedfrom5.60%attheJune30,2018measurementdateto5.17%attheJune30,2019
measurementdate.Thediscountratewaschangedto4.17%fortheJune30,2020measurementdateandthenchangedto6.25%fortheJune30,
2021 and June 30, 2022 measurement date. The discount rate was changed to 6.00% for the June 30, 2023 measurement date.
35
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, 2023
Last Ten Fiscal Years
Retiree Healthcare Plan
1
2017-18
Fiscal Year2022-232021-222020-212019-202018-19
Actuarially determined contribution5,568$ 11,568$ 12,408$ 26,688$ 27,048$ 42,120$
Contributions in relation to
the actuarially determined contribution6,073 7,224 15,312 15,264 22,159 29,448
Contribution deficiency (excess)(505)$ 4,344$ (2,904)$ 11,424$ 4,889$ 12,672$
Covered-employee payroll1,093,980$ 993,256$ 855,299$ 919,082$ 813,498$ 735,216$
Contributions as a percentage of
covered-employee payroll0.56%0.73%1.79%1.66%2.72%4.01%
Notes to Schedule:
1
Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18.
Methods and assumptions used to determine contribution rates:
Contribution valuation dateJune 30, 2022
Actuarial cost methodEntry Age Normal Cost Method
Amortization methodLevel percentage of payroll
Remaining amortization period11-year fixed period for 2022/23
Asset valuation methodInvestment gains and losses spend over 5-year rolling period
Discount rate 6.00%
General inflation2.50%
Non-Medicare-8.50%for2024,decreasingtoanultimaterateof3.45%in2076;Medicare
(Non-Kaiser)-7.50%for2024,decreasingtoanultimaterateof3.45%in2076;Medicare
Medical trend(Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076
Mortality CalPERS 2000-2019 Experience Study.
Mortality improvementMortality projected fully generational with Scale MP-2021.
36
Measure W Safe Clean Water
Special Revenue Fund
of the City of Santa Clarita
Santa Clarita, California
and Statements of Revenues, Expenditures,
and Changes in Fund Balance
For the Years Ended June 30, 2023, 2022 and 2021
Measure W Safe Clean Water Special Revenue Fund
of the City of Santa Clarita
For the Years Ended June 30, 2023, 2022 and 2021
Table of Contents
Page
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 Governmental Auditing Standards
Financial Statements:
Statements of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 7
Notes to the Financial Statements ......................................................................................................................... 9
Schedule of Finding and Response ......................................................................................................................... 11
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INDEPENDENT A
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 Statements of the Revenues, Expenditures, and Changes in Fund Balances of the Measure W
Safe Clean Water Special Revenue Fund (t
years ended June 30, 2023, 2022 and 2021, and the rela
In our opinion, the accompanying financial statements present fairly, in all material respects, the changes in the
nded June 30, 2023, 2022, and 2021, 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
Government Auditing Standards issued by the
Comptroller General of the United States (). Our responsibilities under those
ilities 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, 2023, 2022 and 2021, the changes in its financial position, or, where
applicable, its cash flows for the years 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 Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that is free
from material misstatement, whether due to fraud or error.
To the Honorable Mayor and the Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to
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
ngly, 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2023, on our
l 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
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
rol over financial reporting and compliance.
Santa Ana, California
December 21, 2023
2
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and 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 (), the Statements of Revenues, Expenditures, and
Changes in Fund Balances of the Measure W Safe Clean Water Special Revenue
June 30, 2023, 2022 and 2021, and the related notes (the
our report thereon dated December 21, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statem
audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statement, but not for the purpose of expressing an opinion on the effectiven
Accordingly, we do not express an opinion on the
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,
misstatement on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given
these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. We identified certain deficiencies in internal control, described in the accompanying Schedule
of Findings and Responses as items 2023-001 that we consider to be significant deficiencies.
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 Fund's financial statements is 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 instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards and which are described in the accompanying Schedule
of Finding and Response as items 2023-001.
Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the
response was not subjected to the other auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on the response.
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, 2023
4
FINANCIAL STATEMENTS
5
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6
Measure W Safe Clean Water Special Revenue Fund
of the City of Santa Clarita
Statements of Revenues, Expenditures, and Changes in Fund Balances
For the Years Ended June 30, 2023, 2022 and 2021
202320222021
Revenues:
Municipal program3,214,928$ 3,208,851$ 3,211,394$
Regional program- 1,801,103 -
Investment income (loss)65,957 (118,812) 24,964
s 4,891,1423,280,885 3,236,358
Total revenue
Expenditures:
Municipal program2,236,284 879,895 147,482
Total expenditures 879,8952,236,284 147,482
Net changes in fund balances1,044,601 4,011,247 3,088,876
Fund Balances:
Beginning of year5,513,313 1,502,066 (1,586,810)
End of year$ 5,513,3136,557,914$ 1,502,066$
See accompanying Notes to the Statement of Revenues, Expenditures, and Changes in Fund Balances.
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8
Measure W Safe Clean Water Special Revenue Fund
of the City of Santa Clarita
Notes to the Statement of Revenues, Expenditures, and Change in Fund Balance
For the Years Ended June 30, 2023, 2022 and 2021
Reporting Entity
is used to account for the special parcel tax of 2.5 cents per square foot of impermeable surface area on private
property in the Los Angeles County Flood Control District
voters approved in November 2018 to pay for projects, infrastructure, and program to capture, treat, and recycle
rainwater.
ting policies conform with generally accepted accounting
principles applicable to governments in the United States of America. The Governmental Accounting Standards
r establishing governmental accounting and financial
reporting principles.
The financial statements present only the Fund and do not purport to, and do not present,
l statements are available from the Finance Department at
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Fund
current financial resources
measurement focus. The application of this measurement focus provides that the operating statements of these funds
present revenues, expenditures, and change in fund balances.
The modified accrual basis of accounting is used for the Fund. Under the modified accrual basis of accounting,
revenues are recognized when they become susceptible to accrual (i.e., both measurable and available). Measurable
means that the amount of the transaction can be determined. Available means the funds are collectible within the
current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures of governmental funds are generally recognized when the related fund liability is incurred.
of the tax revenue is allocated to
cities as local return with maximum flexibility. The Municipal Program is designed to maximize the ability of local
governments to address local Stormwater and Urban Runoff challenges and opportunities. The City used the
Municipal Program to fund the construction of Canyon Country Community Center Regional Infiltration Facility, the
design of Via Princess Park Regional Infiltration Facility, the trash excluders in storm drains, the design of Regional
Infiltration Best Management Practices, and salaries, benefits, and overhead to administer the program. The City
incurred expenditures in the amounts of $2,233,146, $879,895 and $147,482 during the years ended June 30, 2023,
2022 and 2021, respectively.
In addition, the Municipal Program allows municipality to use Municipal Program funds to pay for cost and expenses
incurred on or after November 6, 2018, related to the continuation of programs implemented or the maintenance of
projects implemented prior to November 6, 2018. The City reported expenditures in the amount of $1,586,810 as of
July 1, 2020 for program and project meeting this requirement.
9
Measure W Safe Clean Water Special Revenue Fund
of the City of Santa Clarita
Notes to the Statement of Revenues, Expenditures, and Change in Fund Balance (Continued)
For the Years Ended June 30, 2023, 2022 and 2021
implementation of projects and programs that will increase water supply, improve water quality, and provide
community enhancements. The City received the Regional Program fund for the Newhall Park Infiltration
Infrastructure Project. As of June 30, 2023, the City has not incurred expenditures for the Regional Program.
10
Measure W Safe Clean Water Special Revenue Fund
of the City of Santa Clarita
Schedule of Finding and Response
For the Years Ended June 30, 2023, 2022 and 2021
Finding 2023-001 Measure W Reporting
Criteria:
Los Angeles County Code of Ordinance §18.06B requires each municipality prepare, prior to the start of the
will be used in the ensuing fiscal year. In accordance
with Safe, Clean Water Program - Municipal Program Transfer Agreement, Section IV A, the Municipality shall
annually prepare and submit to the District, an Annual Plan. The Annual Plan for the 2020-21 Fiscal Year shall be
submitted to the District no later than 45-days after the execution of this Agreement by the last party to sign. An
Annual Plan for each subsequent Fiscal Year shall be submitted not later than 90-days prior to the start of the Fiscal
Year for which the Plan is prepared.
Los Angeles County Code of Ordinance §18.06D requires each municipality prepare and submit an annual report to
In accordance with Safe, Clean Water Program - Municipal
and Conditions, Section B-30, the Los Angeles County Flood Control District may withhold all or any portion of the
SCW program payment for any fiscal year in the event that the Municipality has violate any provision of the Transfer
Agreement or fail to submit annual reports on meeting SCW Program goals.
Los Angeles County Code of Ordinance §18.07F requires infrastructure program project developers prepare and
submit quarterly progress and expenditures report for the regional program. It also requires submission of annual
summary of the quarterly progress and expenditures reports.
In accordance with Safe, Clean Water Program - Regional
and Conditions, Section B-33, the Quarterly Progress/Expenditure Reports are due within 45 days following the end
of the calendar quarter and the annually, a summary of the Quarterly Progress/Expenditures Reports within 6 months
after the close of the fourth quarter (June 30).
In accordance with Safe, Clean Water Program - Regional
and Conditions, Section B-14, shall the recipient of regional program fail to submit timely Quarterly
Progress/Expenditure Reports, the District shall provide a notice of default and give the recipient 10 calendar days or
longer to cure the default. If the recipient fails to cure the default within the prescribed time, the District may 1)
declare the contribution be immediately repaid, with interest at the rate equal to the State of California general
obligation bond interest rate in effect at the time of the default, 2) terminate any obligation to make future payments
to the recipient, 3) terminate the agreement, or 4) take any other action that it deems necessary.
11
Measure W Safe Clean Water Special Revenue Fund
of the City of Santa Clarita
Schedule of Finding and Response (Continued)
For the Years Ended June 30, 2023, 2022 and 2021
Finding 2023-001 Measure W Reporting (Continued)
Condition:
During our audit for the three years ended June 30, 2023, we noted the following late reporting.
Required ReportFreqquencyPeriod EndDeadlineDate Submitted
Municipal Program
Initial Annual Spending PlanAnnualJune 30, 2021August 9, 2020August 19, 2020
Subsequent Annual Spending PlanAnnualJune 30, 2023April 1, 2022April 11, 2022
Annual Progress/Expenditure Report AnnualJune 30, 2021December 31, 2021August 25, 2023
Regional Program
Quarterly Progress/Expenditures ReportQuarterlyMarch 31, 2021May 15, 2021November 10, 2021
Quarterly Progress/Expenditures ReportQuarterlyJune 30, 2021August 15, 2021December 2, 2021
Quarterly Progress/Expenditures ReportQuarterlyDecember 31, 2021February 15, 2022February 17, 2022
Quarterly Progress/Expenditures ReportQuarterlySeptember 30, 2022November 15, 2022March 6, 2023
Quarterly Progress/Expenditures ReportQuarterlyDecember 31, 2022February 15, 2023March 6, 2023
Quarterly Progress/Expenditures ReportQuarterlyJune 30, 2023August 15, 2023August 25, 2023
Annual Progress/Expenditure Report AnnualJune 30, 2021December 31, 2021August 1, 2023
Annual Progress/Expenditure Report AnnualJune 30, 2022December 31, 2022March 7, 2023
Cause:
The City was unfamiliar with the Municipal Program reporting requirements since the reporting requirements were
new in fiscal year 2021. For the Regional Program, there are inadequate monitoring controls to ensure the reports are
filed timely.
Effect or Potential Effect:
Without timely submitting the required annual spending plan and the quarterly/annual reports, the City is not in
compliance with the SCW Program requirements and could potentially delay the funding.
Recommendation:
We recommend the City develop policies and procedures to ensure timely submission of the annual spending plans
and the reports.
View of Responsible Officials:
As a new program in Fiscal Year 2020-2021, the City worked closely with Los Angeles County to prepare and submit
the required Measure W spending plans and progress/expenditure reports. For the report submittals that were delayed,
City staff maintained regular communication with Los Angeles County staff, working together to ensure accuracy and
completeness of the reports prior to their submittals. Procedures have been developed and implemented to ensure
timely reporting going forward. Los Angeles County confirmed the City is in compliance with reporting
documentation required to date.
12