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Home My WebLink About2026-01-13 - AGENDA REPORTS - FY2024-25 ACFRO Agenda Item: 5 CITY OF SANTA CLARITA .` AGENDA REPORT 1W CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: January 13, 2026 SUBJECT: FISCAL YEAR 2024-25 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, 2025. 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, 2025. 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, 2025. 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. Page 1 Packet Pg. 24 O In addition, the following reports were prepared for the fiscal year ending June 30, 2025, by The Pun Group, LLP: 1. Appropriations Limit Calculation 2. City of Santa Clarita Air Quality Improvement Fund 3. Santa Clarita Open Space Preservation District 4. Single Audit Report 5. Transit Enterprise Fund of the City of Santa Clarita 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 06-30-2025 (available in City Clerk's Reading File) Report to Honorable Mayor and Members of the City Council (available in City Clerk's Reading File) Appropriations Limit Calculation 06-30-2025 (available in City Clerk's Reading File) Air Quality Improvement Fund 06-30-2025 (available in City Clerk's Reading File) Open Space Preservation District 06-30-2025 (available in City Clerk's Reading File) Single Audit Report 06-30-2025 (available in City Clerk's Reading File) Transit Enterprise Fund 06-30-2025 (available in City Clerk's Reading File) Page 2 Packet Pg. 25 � �iSNNTA-� 9 OLyQep l5 DECEMB�P16^ City of SANTA GLARITA ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE30,2025 City of Santa Clarita, California City of Santa Clarita, California Annual Comprehensive Financial Report Year Ended June 30, 2025 Prepared by the Finance Division City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2025 Table of Contents INTRODUCTORY SECTION (Unaudited) Pate GFOA Certificate of Achievement for Excellence in Financial Reporting.................................................................. v Letterof Transmittal................................................................................................................................................... vii Elected Officials and Executive Management........................................................................................................... xiv OrganizationChart ...................................................................................................................................................... xv Map............................................................................................................................................................................ xvi FINANCIAL SECTION Independent Auditor's 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.............................................................................................................................. 16 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 ................... Statement of Changes in Fiduciary Net Position Notes to the Basic Financial Statements ......................... ....................................................................... 41 ....................................................................... 42 ...................................................................... 47 1 City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2025 Table of Contents (Continued) Pate FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited): Budgetary Comparison Schedule: GeneralFund..................................................................................................................................................103 Bridge and Thoroughfare Special Revenue Fund..........................................................................................104 Impact Fees Special Revenue Fund...............................................................................................................105 Landscape Maintenance District #1 Special Revenue Fund..........................................................................106 Transportation Development Act 8 (TDA) Special Revenue Fund...............................................................107 Measure R Highway Improvement Special Revenue Fund...........................................................................108 BudgetaryInformation........................................................................................................................................109 Schedule of Changes in Net Pension Liability and Related Ratios: CAPERSMiscellaneous................................................................................................................................110 Schedule of Contributions — Pensions: CAPERSMiscellaneous................................................................................................................................112 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios: Other Postemployment Benefits(«OPEB")...................................................................................................114 Schedule of Contributions — Other Postemployment Benefits...........................................................................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......................................135 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual: BikewaySpecial Revenue Fund..............................................................................................................146 GasTax Special Revenue Fund...............................................................................................................147 Proposition A Special Revenue Fund......................................................................................................148 Special Assessment Special Revenue Fund.............................................................................................149 Street Lighting District Special Revenue Fund.......................................................................................150 Measure M Local Return Special Revenue Fund....................................................................................151 SB 1 Road Repair and Activity Special Revenue Fund...........................................................................152 Traffic Safety Special Revenue Fund......................................................................................................153 Community Development Block Grant Special Revenue Fund..............................................................154 Air Quality Management District (AQMD) Special Revenue Fund.......................................................155 Stormwater Special Revenue Fund..........................................................................................................156 BJA Law Enforcement Special Revenue Fund.......................................................................................157 Supplemental Law Grant Special Revenue Fund....................................................................................158 In City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2025 Table of Contents (Continued) Pate FINANCIAL SECTION (Continued) Supplementary Information (Continued): Nonmajor Governmental Funds (Continued): Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Continued): HOMESpecial Revenue Fund.............................................................................................................. 159 Public Education and Government Special Revenue Fund................................................................... 160 Proposition C Special Revenue Fund.................................................................................................... 161 Measure H Homeless Initiatives Special Revenue Fund....................................................................... 162 Federal Grants Special Revenue Fund................................................................................................... 163 Measure R Special Revenue Fund......................................................................................................... 164 Measure M ATP Special Revenue Fund............................................................................................... 165 Measure A Safe Parks Special Revenue Fund....................................................................................... 166 Measure W Safe Clean Water Special Revenue Fund........................................................................... 167 Tourism Marketing District Special Revenue Fund.............................................................................. 168 Open Space Preservation District (OPSD) Special Revenue Fund ....................................................... 169 Miscellaneous Grants Special Revenue Fund....................................................................................... 170 Park Dedication Special Revenue Fund................................................................................................ 171 Housing Successor Agency Special Revenue Fund.............................................................................. 172 Tourism Marketing Bureau Special Revenue Fund............................................................................... 173 Areawide Special Revenue Fund........................................................................................................... 174 Cooper Street Parking Structure CFD 2020 Special Revenue Fund ..................................................... 175 Developer Fee Special Revenue Fund................................................................................................... 176 Vista Canyon (VC) Wastewater Standby District Special Revenue Fund ............................................ 177 Public Library Special Revenue Fund................................................................................................... 178 American Rescue Plan Special Revenue Fund...................................................................................... 179 Capital Projects Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual: GeneralCapital Projects Fund............................................................................................................... 180 Civic Arts Projects Capital Projects Fund............................................................................................. 181 Debt Service Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual: Public Financing Authority Debt Service Fund.................................................................................... 182 Internal Service Funds: Combining Statement of Net Position.......................................................................................................... 185 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 186 Combining Statement of Cash Flows........................................................................................................... 187 Custodial Fund: Combining Statement of Fiduciary Net Position .................. Combining Statement of Changes in Fiduciary Net Position .... 190 .... 192 H1 City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2025 Table of Contents (Continued) STATISTICAL SECTION (Unaudited) Description of Statistical Section Contents............................................................................. Financial Trends: Pate .......................197 NetPosition by Component..................................................................................................................................198 Changesin Net Position....................................................................................................................................... 200 Fund Balances of Governmental Funds................................................................................................................204 Changes in Fund Balances of Governmental Funds.............................................................................................206 Revenue Capacity: Assessed Values and Actual Values of Taxable Property .................................................................................... 208 Assessed Values — Taxable Property....................................................................................................................210 Assessed Values — Use Category Summary......................................................................................................... 212 Direct and Overlapping Property Tax Rates.........................................................................................................213 Direct and Overlapping Property Tax Rates — One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies........................................................215 PrincipalProperty Taxpayers............................................................................................................................... 216 Property Tax Levies, Tax Collections and Delinquencies....................................................................................218 Top Property Owners Based on Net Values.........................................................................................................219 Project Area Assessment Appeals Summary and Tax Collection History........................................................... 221 Charge Detail Report for CFD 2002-1 (Valencia Town Center)..........................................................................222 Debt Capacity: Ratios of Outstanding Debt by Type.................................................................................................................... 224 Ratios of General Bonded Debt Outstanding....................................................................................................... 226 Direct and Overlapping Tax and Assessment Debt..............................................................................................227 LegalDebt Margin Information...........................................................................................................................228 Demographic and Economic Information: Demographic and Economic Statistics ...................... Operating Information: Principal Employers..................................................... Full -Time and Part -Time City Employees by Function Operating Indicators by Function ................................. Capital Asset Statistics by Function ............................. ...................................................................................... 231 .............................................. 232 .............................................. 233 .............................................. 234 .............................................. 236 IV 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, 2024 Executive Director/CEO This page intentionally left blank 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 12, 2025 Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents: The Annual Comprehensive Financial Report (ACFR) of the City of Santa Clarita (City) for Fiscal Year 2024-25, 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. 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 for the year ended June 30, 2025. 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 meet the special needs of the federal grantor agencies. The standards governing the Single Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents 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 approximately 232,377, the City is the 3rd largest in Los Angeles County and the 171h largest in the State of California. Santa Clarita offers an expansive parks and recreation network, with 40 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's five Councilmembers are elected to four-year overlapping terms, with elections held bi-annually. Beginning in 2024, the Council elections transitioned 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 (PF A), 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 adopted, the budget may be amended throughout the year as necessary. Budgetary control Vlll Honorable Mayor, Mayor Pro Tern, City Councilmembers and Santa Clarita residents is established at the category level within each fund. The budgetary control for the Capital Improvement Program is at the program level. LOCAL ECONOMY The City of Santa Clarita is one of Southern California's most desirable places to live and do business. City officials pride themselves on the organization's ability to balance the needs of locally -based businesses with those of the community members, resulting in an unmatched quality of life. The City took home top honors as the Most Business -Friendly City in the County by the Los Angeles County Business Federation, 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. These practices have positioned Santa Clarita well for the future. Santa Clarita's economy remains strong, diverse, and steadily growing. In 2025, a wide range of new businesses opened across the community, reflecting continued confidence in the local market. Recent additions include Main Chick Hot Chicken, Pro County, India Garden, Charley's Cheesesteaks, Sierra Grill House, El Fuego Newhall, Tacos La Nina, Slurp & Sip, Pinkberry, Sodam, Slice House, Cafe 86, Valencia Lighting and Fans, Canyon Urgent Care, Focal Sim Racing, and Dog Haus. Several well-known brands deepened their investment in Santa Clarita by opening additional locations, including Jersey Mike's, Starbucks, Chipotle, Sprouts, Black Bear Diner, D&D FireArt Cuisine, The Habit, Handel's Ice Cream, and Planet Fitness. This growth reflects strong customer demand and business confidence, as companies continue to reinvest locally to meet the needs of a thriving consumer base and growing workforce. Old Town Newhall, the City's premier Arts and Entertainment District, continues to flourish with the openings of Purple Planet Creative Space, RJM Grill & Cafe, Goldie Salon and Boutique, and Society Pizza, adding to the area's mix of dining, retail, and creative experiences. There are several new developments taking shape in the City. On the residential side, projects include Riverview - which will feature 318 units, The Hartwell - a five -story mixed -use project which includes 98 apartments and over 6,300 square feet of commercial, Bouquet Residential - with 350 units, the Tesoro Highlands - with 820 homes and Skyline Ranch - which is a 55+ gated community. On the industrial side, Pacific Industrial has completed their 174,000-square-foot warehouse which has been leased by DrinkPak and Oakridge Industrial completed a 430,000-square-foot business park. Commercial activity remains healthy across all sectors. Industrial vacancies are at 9.5 percent in the third quarter of 2025, compared to 7 percent in 2024, reflecting new space becoming available and sustained interest from logistics and production users. Office vacancies improved to 10 percent, down from 14.3 percent last year, signaling renewed ix Honorable Mayor, Mayor Pro Tern, City Councilmembers and Santa Clarita residents leasing activity. Retail vacancies experienced a small increase at 6.1 percent compared to 5.5 percent, underscoring steady consumer demand. Santa Clarita also continues to thrive as one of California's leading film destinations. In Fiscal Year 2024-25, the Film Office issued 379 permits, generating 770 film days and nearly $16 million in estimated economic impact. The City is home to nearly 60 sound stages, 10 movie ranches, and numerous production facilities that attract major television and feature film projects. Popular shows such as "N.C.I.S.," "S.W.A.T.... "Dr. Odyssey,", "Paradise" and "9-1-1," along with films like "The Accountant 2" and "A Big Bold Beautiful Journey," filmed locally, supporting local jobs and small businesses while reinforcing Santa Clarita's reputation as a top filming destination. Tourism remains another key contributor to the City's economic vitality. In Fiscal Year 2024-25, Transient Occupancy Tax revenue added more than $5.5 million to the General Fund. The Tourism Marketing District (TMD), a partnership between the City and local hotels, generated over $1 million to support marketing and event attraction efforts that drive visitor spending. Notable events this year included Boots in the Park featuring Old Dominion, the Grace Baptist Shepherds' Conference, the L.A. Sports Net Softball Tournament, the Legends FC SCV Soccer Tournament, Fright Fest at Six Flags Magic Mountain, and the Spartan Race, along with numerous hockey tournaments, basketball, cross-country, and swim competitions. Together, Santa Clarita's growing business community, thriving film industry and strong tourism sector illustrate a balanced and resilient local economy. Continued investment in infrastructure, business development, and quality of life ensures Santa Clarita remains one of Southern California's most desirable places to live, work, and visit. Santa Clarita recognizes the important role education plays in the success of the community. The City is home to three premier educational institutions, including the California Institute of the Arts (CalArts), College of the Canyons, and The Master's University. These colleges offer world -class instruction and programming to prepare students to become the next generation of business professionals and leaders. LONG-TERM FINANCIAL PLANNING Santa Clarita is one of California's model cities, boasting the essential elements needed for well-balanced living and total well-being. Santa Clarita remains one of the safest cities in California among cities with populations exceeding 150,000. Santa Clarita is home to a well-educated population, with nearly 72 percent of adults aged 25 and older having attained some college or higher, compared to Los Angeles County, which averages 59 percent. The City has experienced steady growth since its incorporation in 1987 and City officials continue to work directly with the private and public sectors to attract new businesses to the Santa Clarita Valley. The City is focused on retaining existing companies and encouraging their growth within the City while working to attract new businesses, thereby X Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents 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. The City of Santa Clarita has practiced smart growth in prosperous financial times and 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. The City has maintained an elite 'AAA' issuer credit rating (ICR) by S&P Global Ratings (S&P) since 2012 and has a "stable" outlook. The City demonstrated strength in economy and management areas, as well as strong budgetary flexibility and liquidity with an operating surplus. S&P recognized the City's budgetary flexibility as among the strongest nationwide for cities of comparable size with an available fund balance. The ICR reflects S&P's forward -looking opinion of the City's overall creditworthiness and the capacity and willingness to meet financial obligations. MAJOR MILESTONES IN FISCAL YEAR 2024-2025 ❖ Completed the City's 39 h Park, the historic Pioneer Oil Refinery and completed the transfer agreement with Los Angeles County for our 401h Park — William S. Hart Park. ❖ Celebrated the grand opening of the River of Lights. Located at Central Park, this new amenity combines light with public art, transforming the exercise staircase and plaza into a regional landmark. ❖ Launched the new Library Express, a mobile library service that brings all the resources of the Santa Clarita Public Library to underserved areas of the community. X1 Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents ❖ Gave parents the tools and resources they need to speak with their children about drug abuse through the innovative Parenting for Prevention campaign, with includes social media posts, podcasts, and in -person meetings. ❖ Facilitated the Community Task Force on Homelessness and begin implementation of the 2025-26 Community Plan to Address Homelessness. ❖ Installed 35 Automated License Plate Reader cameras that are now actively assisting the Santa Clarita Valley Sheriff's Station in apprehending suspects and retrieving stolen property. ❖ Continued construction on The Rink Sports Pavilion and the expansion at David March Park. AWARDS AND ACKNOWLEDGEMENTS The City of Santa Clarita continued to receive accolades over the last year. This year, Santa Clarita was named the 81h Safest City in California by WalletHub, 5th in the nation in the category of Home and Community Safety in that same poll, 61h in the nation for Best Parks by PergolaKitsUSA, and the 51h Best City for Women in California by WalletHub. Santa Clarita took home top honors as the Most Business -Friendly City in the County by the Los Angeles County Business Federation. This last year marked the 34`d consecutive year that Santa Clarita was designated as a Tree City USA by the National Arbor Day Foundation. The City was also recognized with four California Association of Public Information Officials and three City -County and Marketing Association awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Santa Clarita for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. This was the 361h consecutive year the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy GAAP and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current annual comprehensive financial report continues to meet the requirements of the GFOA Certificate of Achievement Program, and we are submitting it to GFOA to determine its eligibility for another certificate. The City of Santa Clarita has received an Investment Policy Certificate of Excellence Award from the Association of Public Treasurers of the United States and Canada for its Fiscal Year 2024-25 Investment Policy. This year marks the 301h 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, X11 Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents investment policies must be carefully reviewed by the association's Investment Policy Certification Committee. For a policy to receive certification, it must be approved by all reviewers on 18 areas spelled out in the Model Investment Policy. This policy includes elements the Association of Public Treasurers of the United States and Canada deems essential to a written investment policy such as policy, scope, the delegation of authority, ethics and conflicts of interest. In addition, the City was awarded the Annual Achievement of Excellence in Procurement (AEP) from the National Procurement Institute. This prestigious honor was awarded in recognition of the City's commitment to purchasing innovation and leadership. This is the 13'' 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 nonprofit 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, Purevsuren Wrinkle; Financial Analyst, German Lopez; and Financial Analyst, Jonathan Contreras. I want to express my appreciation to all members of the division who assisted and contributed to its preparation. I would also like to thank the Mayor; Mayor Pro Tem; Councilmembers; City Manager, Ken Striplin; Assistant City Manager, Frank Oviedo; Director of Neighborhood Services, Jerrid McKenna; Director of Public Works, Mike Hennawy; Director of Recreation and Community Services, Janine Prado; Director of Economic Development, Tom Cole; Director of Community Development, Jason Crawford; and Director of Human Resources and Library Services, Kristi Hobrecker, for their continuing efforts in administering the financial operations of the City conservatively and responsibly. Sincerely, 12 Carmen Magana Director of Administrative Services/City Treasurer CM:BH.jb S:\FINICAFR\ACFR 25\MD&A, Transmittal Letter\Transmittal Letter FY 2024-25.docx X111 OFFICIALS OF THE CITY OF SANTA CLARITA As of June 30, 2025 City Council Bill Miranda MAYOR Laurene Weste MAYOR PRO TEM Patsy Ayala COUNCILMEMBER Jason Gibbs COUNCILMEMBER Marsha McLean 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 DIRECTOR OF NEIGHBORHOOD Jerrid McKenna SERVICES DIRECTOR OF PUBLIC WORKS/CITY Mike Hennawy ENGINEER DIRECTOR OF RECREATION AND Janine Prado COMMUNITY SERVICES DIRECTOR OF COMMUNITY Jason Crawford DEVELOPMENT DIRECTOR OF HUMAN RESOURCES AND Kristi Hobrecker LIBRARY SERVICES Carrie Lujan COMMUNICATIONS DIVISION MANAGER/PIO )\ ._� z/ w \k { = j\ ) k c x ` UGHEy 1 1 ` ANGELES NATIONAL _ FOREST NA, DEL VALLE1 PARK � J IZ V I 1 STAIC SPORTS 1 _ _ — 0 I r COMPlEx I 1 - J I 1 DAVENPOQ(R'D r 1 O j T•/�K'A^- 0 7 1 ` ' TESfRO Q + PACIFIC ADOBE K_� r r CREST PARK I I VAS MOUNTAIN J Q// �� Q I ,` VIEW PARK �1 1 colt COPPER I 21 J TERRY MILLER MEMORIALPARK R`HIL'L^DR HILL _ —_ --- Z ' •WEST+CREEK ' PARK 1 ' 1 A 1 CANTON RD i PARK - CHESEBROUGH PARK Z r O HASLEY CANYON y '\ = m 2�O BOLQUET `W _ PARK ` �P O PAMPLI O PARK Q U CANYON PARK DAVID MARCH 1 1 O ` ` 3 i I �i f� 0 SUMMERHILLPARK 'D J LU P` PARK GIH Or r 1 )y 1 e OF SANTA CLARITA PARK CORO.DR71� u CANYDN'RO PLUM a ��F < OECORO•DR—Z J CANYON 1 r__ 1 ♦ O / ARD PARK I 1 ny '%OOR iheCUBE NORPARKIDGE' �p+�P AO� BEGONIAS LANE PARK w1 -�'RPORAI YARD VALENC11 'HERITAGE PARK CENTRAL PARK W GOLDEN 9N 4Yn�_ Q OAK p It�A. �O /MARKETPLACE PARK _ VALLEVD�'O TODD LONGSHHORE PARK /..... 10 O SPRING CANYON p SIX FLAGS MAGIC MOUNTAIN MAG/C,MC VALENCIA COUNTRY CLUB eVV D G\ TPC ` JL^- VALENCI "`" "SANTA CLARITA City of Santa Clarita Vicinity Map Created: November 2022 C-'_ j City of Santa Clarita Boundary N A 0 0.5 1 2 Miles The City of Santa Clarita does not warrant the accuracy of the data and assumes no liability for any errors or omissions. Q:\PR0JECTS\AS\191114f1\SCV Regional Map\SCV Regional Map.aprx PARK PARK HA L A VALENCIA CENTRAL 1LENCIA VALLEY A jM71TN PARK 0 PARK Dom, CIRCLE 1 ALMENDRA L RANCH PARK M unuv.E VALENCIA COURSE MASTERS COLLEGE )MMUNITY CEf ]TER NORTH OAKS PARK DISCOVERY PARK FRIENDLY VALLEY GOLF COUBI THE CASCADES THE CASCADES GOLF CLUB STETS /y CANYON COUNTRY PARK VISTA ;0LE6A_D'CANY0N..RD CANYON PARK 1 ROB]NSON RANCH 1 COUNTRY CLUB RO FAIR OAKS 1 PARK ; 1 VpST.171 9 o I z I 16 i 1 o I L J rP�ACERITA,CANYON�RD� PLACERITA1 �` CANYON 1 1 STATE PARK 1 l J ' rI I 1 ANGELES 1_ NATIONAL FOREST THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinions 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2025, 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, 2025, 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 Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matters Change in Accounting Principle As discussed in Notes 1 and 19 to the financial statements, the City adopted new accounting principle, GASB Statement No. 101, Compensated Absences in 2025 and resulted in restatement of beginning fund balances. Our opinions are 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. 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 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. Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of Changes in Net Pension Liability and Related Ratios, the 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 auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2025, 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 12, 2025 This page intentionally left blank MANAGEMENT'S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2025 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, 2025. 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 $1.75 billion. Of this amount, $274 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 $30.2 million and deferred inflows of resources total $22.0 million. • The City's total deferred outflows of resources decreased by $6.5 million. The deferred inflows of resources decreased by $3.3 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 $94.2 million. Net position of the business -type activities increased by $2.0 million, and the net position of the governmental activities increased by $92.2 million (Table 1 & 2). • The net capital assets of the City's governmental activities increased by $38.2 million, or 3.09% over last fiscal year. The increase was in part due to increases of $43.6 million in construction in progress. This increase is attributed to: 1) a $20.5 million addition for the Vista Canyon Bridge; 2) a $7.6 million addition for the Rink Sports Pavilion; 3) a $5.8 million addition for the Energy Efficiency project; and 4) a $3.8 million and $2.9 million addition for Old Orchard Park and David March Park, respectively. 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 $517 million. This represents an increase of $49 million as compared to the prior year. • Within governmental funds, the General Fund reported a fund balance of $305 million, an increase of $23 million over the prior year. This increase is primarily attributed to 1) investment income being $4.2 million higher as a result of strong market performance and a higher overall fair market value of the City's investment portfolio as of June 30, 2025; and 2) taxes being $3.5 million higher as a result of growth. Sales taxes generated by autos/transportation and the City's share of state/county pools increased by 12% and 10%, respectively, over the prior year. Property taxes saw an increase as a result of continued housing sales with higher assessed valuations. Transient occupancy taxes saw an increase due to the opening of a new Hampton Inn, higher overall daily room rates, and higher occupancy rates as a result of accommodating displaced homeowners, insurance adjusters, and first responders related to the Palisades, Eaton, and Hughes fires. Capital outlay expenditures are $5.1 million lower in fiscal year 2024-2025 due to the one-time purchase of the Citrus Building in the prior year. Issuance of debt also increased by $1.8 million primarily due to a new subscription under GASB Statement No. 96-Subscription Liabilities for the City's Accela permitting system and two new leases under GASB Statement No. 87-Leases for a Kyocera equipment lease of printer/copiers and an equipment lease of Flock Safety license plate readers. • 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 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. 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 48 governmental funds. The General Fund, Bridge and Thoroughfare Fund, Impact Fee Fund, and Landscape Maintenance District #1 Fund are presented separately as major funds in the governmental fund balance sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances. Financial data for the remaining 44 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. 1I:1=11104Iwe_F'sI: -I&II=1 ==;I1.11193r_1: d11J►1•I'Ir_%r=117i1=1►11K 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 $94.2 million, increasing from $1.66 billion to $1.75 billion. ASSETS: Current and Other Assets Capital assets, net Noncurrent Assets TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES: LIABILITIES: Noncurrent Liabilities Other Liabilties TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: NET POSITION: Net investment in capital assets Restricted Unrestricted TOTAL NET POSITION TABLE 1 CITY OF SANTA CLARITA'S NET POSITION Governmental Activities Business -type Activities Total 2025 2024 2025 2024 2025 2024 $ 595,793,995 $ 511,621,390 $ 32,431,564 $ 23,995,234 $ 628,225,559 $ 535,616,624 1,274,647,287 1,236,492,893 81,023,060 84,534,345 1,355,670,347 1,321,027,238 28,597,740 41,106,181 142,638 183,117 28,740,378 41,289,298 1,899,039,022 1,789,220,464 29,245,306 35,503,061 180,811,506 76,442,808 189,216,881 53,401,988 257,254,314 242,618,869 21,551,257 24,818,717 1,182, 845, 748 216, 970, 796 249,662,213 1,154, 546, 653 183, 484, 669 219,254,617 113,597,262 108,712,696 942,989 1,192,123 1,441,068 7,247,311 1,515,204 4,427,438 8,688,379 5,942,642 423,829 499,089 81,023,060 24, 404, 983 84,534,345 18, 928, 743 2,012,636,284 1,897,933,160 30,188,295 36,695,184 182,252,574 83,690,119 190,732,085 57,829,426 265,942,693 248,561,511 21,975,086 25,317,806 1, 263, 868, 808 216, 970, 796 274,067,196 1,239, 080, 998 183, 484, 669 238,183,360 $ 1,649,478,757 $ 1,557,285,939 $ 105,428,043 $ 103,463,088 $ 1,754,906,800 $ 1,660,749,027 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, 2025, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.75 billion. The largest component of the City's net position, 72%, is represented by its $1.26 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, 12.4% represents resources subject to external restrictions on how they may be used. The remaining 15.6% of unrestricted net position, $274.1 million, may be used to meet the City's ongoing obligations to citizens and creditors. 8 THE CITY AS A WHOLE (CONTINUED) 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 $92.2 million over the prior year. The unrestricted net position of the business -type activities increased by $5.5 million. Governmental Activities Revenues from governmental activities increased by $30.5 million. The cost of all governmental activities this year was $232.3 million, an increase of 14% over the past year. As shown in the Statement of Activities, the governmental activities expenses were ultimately financed in part by the taxpayers, as $97.9 million in revenues were generated by service revenues received from the performance of these activities; another $30 million was received from government agencies and other organizations that subsidized certain programs with operating grants and contributions; and another $54.4 million in revenues was generated from capital grants and contributions. The $27.3 million increase in capital grants and contributions is attributed to: 1) $17 million in Measure R Highway Operational Improvement funds for the continued construction of the Vista Canyon Bridge project, which will provide a secondary access point from Soledad Canyon Road to the Vista Canyon community and Metrolink station; and 2) $10 million in Transportation Development Act (TDA) Article 8 funds for the completion of the Fiscal Year 2023-2024 Overlay & Slurry Seal project to maintain the quality and viability of the City's street infrastructure. Overall, the City's governmental program and general revenues amounted to $320.3 million, which funded the expenses and resulted in an $84 million increase in net position. The increase of $1.5 million in Property Taxes revenue is attributed to continued housing sales activity with higher assessed valuations. The $2.0 million increase in Other Taxes is primarily due to a $1.2 million increase in Sales Tax generated by autos/transportation and the City's share of state/county pools, which increased by 12% and 10%, respectively, over the prior year. Transient occupancy taxes saw an $250 thousand increase due to the opening of a new Hampton Inn, higher overall daily room rates, and higher occupancy rates as a result of accommodating displaced homeowners, insurance adjusters, and first responders related to the Palisades, Eaton, and Hughes fires. The increase of $3.2 million in Other revenues is mainly attributed to a $4.7 million increase in investment income compared to the prior year due to strong market performance and a higher overall fair market value of the City's investment portfolio as of June 30, 2025. Expenditures from governmental activities increased by $28.6 million, mainly due to a $26.2 million increase in Public Works expenditures. The main contributors to the increase in Public Works are: 1) a $5.7 issuance of Bridge and Thoroughfare credit which includes a net credit issuance of $3.9 million associated with Sand Canyon Plaza project, and a net credit issuance of $885 thousand associated with the Copper Hill Bridge Widening project; and 2) $14.4 million net additions from capital asset expenditures. The net capital asset expenditure additions include: 1) $20.5 million for the Vista Canyon Bridge; 2) $7.6 million for the Rink Sports Pavilion; 3) $5.8 million for the Energy Efficiency project; and 4) a $3.8 million and $2.9 million for Old Orchard Park and David March Park, respectively. Neighborhood Services had a $2.1 million increase mainly due to the following contributors: 1) an increase of $1.3 million in personnel expenditures due to a 4% cost of living adjustment; 2) an increase to the Vista Canyon Wastewater Standby District Fund for increased electric utility costs as a result of Southern California Edison rate increases ($124,383) and increased contractual services costs associated with the water factory operator contract taken over by the City for a full year in Fiscal Year 2024-2025 versus three months in the prior year ($202,555). Recreation and Community Services had a $2.4 million increase mainly due to the following: 1) $1.3 million in personnel expenditures due to a 4% cost of living adjustment and the movement of the City's Centre operations from Community Development to Recreation and Community Services in the current year 2) $1 million increase in depreciation expenditures mainly due to completion and depreciation of the City's Central Park Build Out project; $285,000 for the operation and maintenance of the new Valencia Community Center. Public Safety decreased $2.0 million primarily due to the City recording the remaining balance owed for the City's 100% share of Fire Station 104, which was $1.5 million less than the prior year. Interest and fiscal charges decreased by $1.5 million due to the payoff of 11 Bridge and Thoroughfare interfund loans in the prior year. TABLE 2 CITY OF SANTA CLARITA'S CHANGES IN NET POSITION Governmental Actimties Business -type Actimties Total 2025 2024 2025 2024 2025 2024 Program Revenues: Charges for sewces $ 97,860,043 $ 99,838,340 $ 7,603,837 $ 6,161,116 $ 105,463,880 $ 105,999,456 Operating grants and contributions 29,947,141 31,377,313 23,929,561 27,714,574 53,876,702 59,091,887 Capital grants and contributions 54,396,674 27,088,019 4,228,982 3,509,025 58,625,656 30,597,044 General Revenues: Taxes: Property taxes 49,818,171 48,363,857 - - 49,818,171 48,363,857 Othertaxes 68,017,921 66,019,485 - - 68,017,921 66,019,485 Other 20,247,280 17,086,025 1,285,375 418,986 21,532,655 17,505,011 Total Revenues 320,287,229 289,773,039 37,047,755 37,803,701 357,334,984 327,576,740 General government 43,353,928 42,903,612 - - 43,353,928 42,903,612 Public safety 36,355,365 38,352,436 - - 36,355,365 38,352,436 Recreation and community sewces 23,946,496 21,576,455 - - 23,946,496 21,576,455 Public works 43,318,806 16,966,219 - - 43,318,806 16,966,219 Community development 21,359,973 20,881,513 - - 21,359,973 20,881,513 Neighborhood services 37,086,261 35,112,719 - - 37,086,261 35,112,719 Unallocated infrastructure depreciation 23,068,021 22,660,450 - - 23,068,021 22,660,450 Interest and fiscal charges 3,785,637 5,267,945 - - 3,785,637 5,267,945 Transit 39,126,362 42,110,510 39,126,362 42,110,510 Total Expenses 232,274,487 203,721,349 39,126,362 42, 110,510 271,400,849 245,831,859 Increase/Decrease in Net Postion Before Transfers 88,012,742 86,051,690 (2,078,607) (4,306,809) 85,934,135 81,744,881 Transfers (4,132,728) 254,834 4,132,728 (254,834) Changes In Net Position 83,880,014 86,306,524 2,054,121 (4,561,643) 85,934,135 81,744,881 Net Position —Beginning of Year, as previously reported 1,557,285,939 1,470,979,415 103,463,088 108,024,731 1,660,749,027 1,579,004,147 Change in accounting principle (3,159,442) - (89,166) - (3,248,608) - Correction of error 11,466,245 11,466,245 Net Position— Beginning of Year, as restated 1,565,592,742 1,470,979,415 103,373,922 108,024,731 1,668,966,664 1,579,004,146 Net Position — End of Year $ 1,649,472,757 $ 1,557,285,939 $ 105,428,043 $ 103,463,088 $ 1,754,900,800 $ 1,660,749,027 Business -Type Activities Business -type activities increased the City's net position by $2.0 million for the current year. Business -type activities revenues decreased by $756 thousand during the year for a total of $37.0 million in revenues, excluding transfers in from governmental activities. The decrease is mainly attributed to operating grants and contributions, which decreased by $3.8 million due to: 1) the City utilizing its remaining balance of one- time Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) funding to support transit operations, which was $1.9 million less than the prior year; and 2) the City receiving $2.4 million less, collectively, in Measure R and Measure M Bus Operation funds from the Los Angeles County Metropolitan Transportation Authority's funding mark due to sales tax performance being lower than anticipated in the prior years. Transit expenditures decreased by $3 million, primarily due to Vista Canyon Metrolink Station rail related work being turned over to the Southern California Regional Rail Authority at project completion in prior year. THE CITY'S FUNDS The governmental funds reported a combined fund balance at the end of the current fiscal year of $517 million, an increase of $49 million over the prior year. Approximately $198 million is restricted and already reserved for specific restricted purposes. The total governmental fund balance includes the General Fund balance of $305 million. The General Fund is the chief operating fund of the City. The unassigned fund balance of $63 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: • In the current year, the TDA Article 8 special revenue fund and Measure R Highway Operational Improvement special revenue fund are classified as a major fund. See Note 19 for more information. • The Bridge and Thoroughfare Fund increased $1.4 million due to a $3.0 million increase in Bridge and Thoroughfare fees collected primarily in the Valencia Bridge and Thoroughfare District associated with the Tesoro Highlands development. 10 THE CITY'S FUNDS (Continued) • The Impact Fee Fund's fund balance increased by $2.5 million mainly due to a $5.7 million in Developer Fees, which is $527,305 higher than prior year. Also contributed to the fund balance increase was an increase of $769,282 in investment income, which is $408,568 higher than prior year, due to higher fair market value in investment, when compared to prior year. A $1.5 million decrease in Public Safety Expenditure also contributed to the fund balance increase. The decrease was due to a lower remaining balance from the Fire Station Reimbursement. The Landscape Maintenance District's fund balance increased by $1.4 million primarily due to consumer price index increases to special assessments and an increase of $432 thousand in investment income as a result of strong market performance and a higher overall fair market value of the City's investment portfolio. In addition to the major funds, the fund balances for the other governmental funds experienced an aggregate increase of $18.8 million. Governmental Funds fund balance changes are noted below: • The Public Library Fund increased $2.7 million as a result of higher assessed valuations yielding higher property tax revenues as well as higher investment income from strong market performance and a higher overall fair market value of the City's investment portfolio. In addition, overall annual expenditures were lower than annual revenues, resulting in fund balance accumulating in the fund for future expenditures. The Measure W Safe Clean Water Fund increased $2.6 million primarily due to overall annual expenditures being lower than annual revenues. Revenue remained steady at $3.3 million while capital expenditures decreased by $0.7 million due to lower expenditures incurred for the Via Princessa Park project when compared to the prior year. The Proposition C Local Return Fund increased by $5 million and the Proposition A Local Return Fund increased by $1.3 million as a result of utilizing one-time CRRSA and American Rescue Plan Act (ARPA) funds to fund transit operations, allowing Proposition A and C Local Return funds to accumulate and fund transit operations in future years. In addition, the Proposition C Local Return Fund expended $4.2 million less for Overlay and Slurry projects. The utilization of $4.2 million of Proposition C Local Return funds in prior year was necessary to ensure local return funds did not expire as a result of accumulating fund balances due to the one-time CRRSA and ARPA funds. • The Park Dedication Fund increased by $1.9 million primarily due to the collection of Park Dedication fees associated with the Sand Canyon Plaza development project. The Street Lighting District Fund increased by $2.0 million due to overall annual revenues exceeding annual expenditures, accumulating fund balance to pay for future expenditures, including the future payoff of the City's Streetlight bonds. 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 $2.0 million. The increase was primarily due to a $1.4 million increase in transit operating revenue and a $3.0 million decrease in transit expenditures when compared to the prior year. The prior year decrease in transit expenditures was a result of turning over Vista Canyon Metrolink Station rail related work to the Southern California Regional Rail Authority at project completion. The unrestricted portion of the business -type activities net position increased by $5.5 million from the prior year. The Internal Service Funds net position increased by $2.0 million or 15.1 %. The ending fund balance for Internal Service Funds is $15.4 million, of which $13.9 million is unrestricted. General Fund Budgetary Highlights Comparison of the fiscal year 2024-2025 original (adopted) general fund budgeted expenditures and transfers of $166.0 million to the final budgeted expenditures of $201.8 million results in a net increase of $35.8 million. IM THE CITY'S FUNDS (CONTINUED) Included in this net increase is $22,256,517 committed purchase orders and contracts from the prior June 30 balance, as well as $3,014,873 of prior fiscal year operating and capital improvement projects approved for carryover into fiscal year 2024-2025. Original Budget Continued Encumbrances Beg. Balance - Supplemental Final Budget + Appropriations + = Changes = $165,977,621 + $3,014,873+ $22,256,517 = $191,249,011 + $ 10,525,074 = $201,774,085 Comparing the beginning budget balance of $191.2 million with the final budget of $201.8 million indicates the General Fund had a supplemental budgetary increase of $10.5 million during the fiscal year. The budgetary increase was primarily due to funding appropriations for the Haskell Canyon Bike Park project ($4.5 million), purchase of the Vasquez Canyon Ranch property ($2.6 million), and Dockweiler Drive Extension project ($2.1 million). During the mid -year budget review, budgeted general fund revenue had an decrease of $808,448, inclusive of transfers in. Included in this figure are decreases of $1.3 million in sales tax revenue due to slower than anticipated growth; $160,000 in film permits and fees as a result of continued impacts from recent industry strikes; $100,000 in right-of-way encroachment permits; and $100,000 in grading inspections due to project delays. It also includes increases of $170,000 in community preservation and parking citations due to enforcement activities remaining at consistent levels; $71,000 in field and facility rentals as a result of continued demand; $200,000 in record maintenance due to higher than anticipated residential tract and commercial permit activity; and $187,774 transfer in from the Fire Facilities Fund for the City's five percent share of fire district administrative fees, and an $88,186 transfer in from the Eastside Bridge & Thoroughfare District Fee Fund for the reimbursement of prior year Vista Canyon Bridge project expenditures. At year-end, the City's actual general fund revenues, excluding transfers in, were $14.7 million more than the final budgetary estimates. Actual general fund expenditures, excluding transfers out, were less than the final budgetary estimates by $53.9 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 $1.36 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). TABLE 3 CITY OF SANTA CLARITA'S CAPITAL ASSETS (net of depreciation) Governmental Activities Business Type Activities Total 2025 2024 2025 2024 2025 2024 Land $ 266, 437, 549 $ 264, 016,645 $ 15, 087, 880 $ 15, 087, 880 $ 281, 525,429 $ 279,104, 525 Construction in progress 96,645,180 53,039,073 399,758 233,090 97,044,938 53,272,163 Infrastructure, net 632,020,500 636,322,627 - - 632,020,500 636,322,627 Depreciable site improvements, net 74,580,498 74,826,418 13,221,703 13,987,103 87,802,201 88,813,521 Depreciable building and improvements, net 196,012,252 200,529,101 27,190,331 28,214,434 223,202,583 228,743,535 Depreciable equipment, net 5,518,572 4,952,079 25,123, 388 27, 011, 838 30, 641, 960 31, 963, 917 Intangible asset, net 3,432,736 2,806,950 - - 3,432,736 2,806,950 TOTALS $1,274,647,287 $1,236,492,893 $ 81,023,060 $ 84,534,345 $1,355,670,347 $1,321,027,238 Major capital asset events during the year included: • Land had a net increase totaling $2.4 million primarily due to the purchase of the Ayres property ($1.1 million) and Hartigan property ($0.68 million), as well as the recordation of a Vista Canyon parcel transferred from the Vista Canyon developer to the City per the development's condition of approval ($0.52 million). 12 CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED) Major capital asset events during the year included: • Infrastructure had a net decrease totaling $4.3 million as there were no major additions to infrastructure and annual depreciation was higher than current year additions. • Construction in progress had a net increase totaling $43.8 million due to the following construction in progress: 1) a $20.5 million addition for the Vista Canyon Bridge; 2) a $7.6 million addition for the Rink Sports Pavilion; 3) a $5.8 million addition for the Energy Efficiency project; and 4) a $3.8 million and $2.9 million addition for Old Orchard Park and David March Park, respectively. • Depreciable building and improvements had a net decrease of $5.5 million as there were no major additions to infrastructure and the annual depreciation was higher than current year additions. • Intangible assets had a net increase of $625,786 mainly due to a new subscription under GASB Statement No. 96-Subscription Liabilities for the City's Accela permitting system and two new leases under GASB Statement No. 87-Leases for a Kyocera equipment lease of printer/copiers and an equipment lease of Flock Safety license plate readers. 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 $114 million in bonds, financed purchase note notes payable, lease liabilities, subscription liabilities, compensated absences, and claims/judgments as shown in Table 4. A summary of debt activity for the year follows. TABLE 4 CITY OF SANTA CLARITA'S OUTSTANDING DEBT Governmental Activities Business -type Activities Total 2025 2024 2025 2024 2025 2024 Revenue and Taxable Revenue Bonds $ 13,097,876 $ 13,453,845 $ $ $ 13,097,876 $ 13,453,845 Lease Revenue Bonds* 76,393,027 78,838,324 76,393,027 78,838,324 Financed Purchase Notes Payable 29,754 64,218 29,754 64,218 Lease Liabilities 972,536 369,641 972,536 369,641 Subscription Liabilities 2,372,505 2,393,602 2,372,505 2,393,602 Compensated Absences** 9,286,477 8,177,300 221,304 207,485 9,507,781 8,384,785 Claims and Judgments 11,944,679 9,577,306 - - 11,944,679 9,577,306 TOTAL $ 114,096,854 $ 112,874,236 $ 221,304 $ 207,485 $ 114,318,158 $ 113,081,721 *As restated **Shown as net change during the year The City's governmental activities had $114 million in debt at year-end. Governmental activities long-term debt increased overall by $1.2 million. Compensated absences reflect the implementation of GASB 101 in the current year which includes a restatement for the prior year, resulting in a $1.1 million increase. This increase is attributed to a 4% cost of living adjustment to employee salaries. Additional information on the City of Santa Clarita's implementation of recent GASB pronouncements 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, 2025, 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, 2025 was $1,739,222,830. The calculation of the debt limitation is included in the statistical section. Additional information on the City of Santa Clarita's debt can be located in Note 11 to the financial statements. 13 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS Our long history of conservative and strategic budget practices has allowed the City to maintain a balanced budget every year. Since the Great Recession, our organization has understood that there will continue to be economic peaks and valleys, and we need to be prepared and positioned for times when the economy is weak. The City's strategy demonstrated its continued success during the COVID-19 recession, a time in which the City remained in good fiscal health, with a balanced budget. • General Fund sales tax revenue continues to be one of the largest revenue sources to operate general governmental functions, accounting for 31 % or $50 million as projected in the 2025-2026 mid -year budget. • Property tax revenues account for 32% of the General Fund budget or $51.7 million in 2025-2026. 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 2025-2026 mid -year General Fund expenditures are projected to be $159.5 million, resulting in a balanced budget, an operating surplus of $353,506, and a 20% operating reserve of $26.7 million. The City's adopted 2025-2026 operating and capital budget for all funds was $344.6 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 2025-2026 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 2025-2026 budget can be obtained by visiting the web at htti)s://santaclarita.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 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 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, 2025 Primary Government Governmental Business -Type Activities Activities Total $ 555,783,191 $ 28,106,638 $ 583,889,829 1,012,139 - 1,012,139 31353,887 169,318 3,523,205 15,184,319 - 15,184,319 533,858 - 533,858 17,471,166 4,120,319 21,591,485 2,395,435 35,289 2,430,724 60,000 - 60,000 595,793,995 32,431,564 628,225,559 4,694 - 4,694 2,713,274 - 2,713,274 4,329,159 - 4,329,159 13,901,006 - 13,901,006 5,800,821 142,638 5,943,459 1,848,786 - 1,848,786 363,082,729 15,487,638 378,570,367 908,131,822 65,535,422 973,667,244 3,432,736 - 3,432,736 1,274,647,287 81,023,060 1,355,670,347 1,303,245,027 81,165,698 1,384,410,725 1,899,039,022 113,597,262 2,012,636,284 21,129,360 769,582 21,898,942 7,051,787 173,407 7,225,194 1,064,159 - 1,064,159 29,245,306 942,989 30,188,295 See accompanying Notes to the Basic Financial Statements. 16 City of Santa Clarita Statement of Net Position (Continued) June 30, 2025 Primary Government Governmental Business -Type Activities Activities Total LIABILITIES Current liabilities: Accounts payable and accrued liabilities 50,418,890 7,103,475 57,522,365 Accrued interest payable 421,794 - 421,794 Unearned revenue 1,699,770 - 1,699,770 Deposits payable 4,793,440 - 4,793,440 Due to the Successor Agency 7,734,479 - 7,734,479 Due to other government 27,039 - 27,039 Compensated absences - due within one year 5,094,958 143,836 5,238,794 Claims and judgment - due within one year 1,676,000 - 1,676,000 Long-term liabilities - due within one year 4,576,438 - 4,576,438 Total current liabilities 76,442,808 7,247,311 83,690,119 Noncurrent liabilities: Compensated absences - due in more than one year 4,191,519 77,468 4,268,987 Claims and judgment - due in more than one year 10,268,679 - 10,268,679 Long-term liabilities - due in more than one year 88,289,260 - 88,289,260 Developer credits 40,624,783 - 40,624,783 Net pension liabilities 37,437,265 1,363,600 38,800,865 Total noncurrent liabilities 180,811,506 1,441,068 182,252,574 Total liabilities 257,254,314 8,688,379 265,942,693 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 815,653 29,708 845,361 Deferred inflows of resources related to OPEB 16,027,593 394,121 16,421,714 Leases 4,708,011 - 4,708,011 Total deferred inflows of resources 21,551,257 423,829 21,975,086 NET POSITION Net investment in capital assets 1,182,845,748 81,023,060 1,263,868,808 Restricted: Landscape maintenance 35,672,021 - 35,672,021 Lighting District 19,249,424 - 19,249,424 Capital improvements 32,070,749 - 32,070,749 Transportation 62,420,027 - 62,420,027 Open space preservation 8,464,843 - 8,464,843 Public safety 4,088,866 - 4,088,866 Public library 15,076,968 - 15,076,968 Air quality improvement 642,376 - 642,376 Stormwater 5,614,404 - 5,614,404 Public education and government 1,118,243 - 1,118,243 Tourism marketing 1,362,664 - 1,362,664 Low and moderate income housing 5,660,481 - 5,660,481 Clean safe water 10,740,982 - 10,740,982 Debt service 726 - 726 Pensions 2,713,274 - 2,713,274 Other 12,074,748 - 12,074,748 Total restricted 216,970,796 - 216,970,796 Unrestricted 249,662,213 24,404,983 274,067,196 Total net position $ 1,649,478,757 $ 105,428,043 $ 1,754,906,800 See accompanying Notes to the Basic Financial Statements. 17 This page intentionally left blank. 18 GOVERNMENT -WIDE FINANCIAL STATEMENTS 19 City of Santa Clarita Statement of Activities For the Year Ended June 30, 2025 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities: General government $ 43,353,928 $ 47,432,446 $ 3,477,072 $ 908,916 Public safety 36,355,365 1,919,701 2,306,102 4,779,842 Recreation and community services 23,943,496 8,708,352 35,000 - Public works 43,318,806 12,179,749 18,976,322 44,647,935 Community development 21,359,973 15,550,066 4,939,740 - Neighborhood services 37,086,261 12,069,729 212,905 4,062,981 Unallocated infrastructure depreciation 23,068,021 - - - Interest and fiscal charges 3,785,637 - - - Total governmental activities 232,271,487 97,860,043 29,947,141 54,399,674 Business -type Activities: Transit enterprise 39,126,362 7,603,837 23,929,561 4,228,982 Total business -type activities 39,126,362 7,603,837 23,929,561 4,228,982 Total primary government $ 271,397,849 $ 105,463,880 $ 53,876,702 $ 58,628,656 See accompanying Notes to the Basic Financial Statements. 20 City of Santa Clarita Statement of Activities (Continued) For the Year Ended June 30, 2025 Net (Expenses) Revenues and Changes in Net Position Governmental Business -Type Functions/Programs Activities Activities Total Governmental Activities: General government $ 8,464,506 $ - $ 8,464,506 Public safety (27,349,720) - (27,349,720) Recreation and community services (15,200,144) - (15,200,144) Public works 32,485,200 - 32,485,200 Community development (870,167) - (870,167) Neighborhood services (20,740,646) - (20,740,646) Unallocated infrastructure depreciation (23,068,021) - (23,068,021) Interest and fiscal charges (3,785,637) - (3,785,637) Total governmental activities (50,064,629) - (50,064,629) Business -type Activities: Transit enterprise - (3,363,982) (3,363,982) Total business -type activities - (3,363,982) (3,363,982) Total primary government (50,064,629) (3,363,982) (53,428,611) General revenues and transfers: General revenues: Taxes: Property taxes 49,818,171 - 49,818,171 Sales taxes 49,313,249 - 49,313,249 Franchise taxes 11,192,681 - 11,192,681 Transient occupancy taxes 5,545,207 - 5,545,207 Property transfer tax 1,567,684 - 1,567,684 Property taxes in lieu of motor vehicle fee 399,100 - 399,100 Investment income 18,291,469 1,285,375 19,576,844 Miscellaneous 1,955,811 - 1,955,811 Total general revenues 138,083,372 1,285,375 139,368,747 Transfers (4,132,728) 4,132,728 - Changes in net position 83,886,015 2,054,121 85,940,136 Net position Beginning of year, as previously reported 1,557,285,939 103,463,088 1,660,749,027 Change in accounting principle (3,159,442) (89,166) (3,248,608) Correction of error 11,466,245 - 11,466,245 Beginning of year, as restated (Note 19) 1,565,592,742 103,373,922 1,668,966,664 End of year $ 1,649,478,757 $ 105,428,043 $ 1,754,906,800 See accompanying Notes to the Basic Financial Statements. 21 This page intentionally left blank. 22 FUND FINANCIAL STATEMENTS 23 This page intentionally left blank. 24 GOVERNMENTAL FUND FINANCIAL STATEMENTS 25 City of Santa Clarita Balance Sheet Governmental Funds June 30, 2025 Special Revenue Funds Landscape General Bridge and Impact Maintenance Fund Thoroughfare Fee District #1 ASSETS Cash and investments $ 293,418,436 $ 23,510,427 $ 15,223,918 $ 28,087,887 Accounts receivable, net 750,078 - - 6,350 Interest receivable 1,821,638 142,161 91,711 172,479 Taxes receivables 13,852,125 - - 183,170 Loans receivable - - - - Leases receivable 4,863,017 - - - Notes to RDA Successor Agency 6,032,371 - - - Prepaid items 444,142 - - 1,515,931 Due from other governments 420,181 - - - Due from other funds 9,182,339 - - - Advance to other funds 7,143,850 - - - Deposits with others 60,000 - - - Restricted assets: Cash and investments with fiscal agents 726 - - - Cash and investments with PARS 2,713,274 - - - Total assets $ 340,702,177 $ 23,652,588 $ 15,315,629 $ 29,965,817 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 15,121,037 $ 553,670 $ 6,464,945 $ 1,675,596 Deposit payable 4,793,440 - - - Due to other funds - - - - Due to the Successor Agency 7,700,000 - - - Due to other government 27,039 - - - Unearned revenue 1,079,116 - - - Advance from other funds - 7,143,850 - - Total liabilities 28,720,632 7,697,520 61464,945 1,675,596 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 2,407,840 - - - Leases 4,708,011 - - - Total deferred inflows of resources 7,115,851 - - - Fund Balances: Nonspendable 13,680,363 - - 1,515,931 Restricted 2,714,000 15,955,068 8,850,684 26,774,290 Assigned 225,276,237 - - - Unassigned (deficit) 63,195,094 - - - Total fund balances 304,865,694 15,955,068 8,850,684 28,290,221 Total liabilities, deferred inflows of resources, and fund balances $ 340,702,177 $ 23,652,588 $ 15,315,629 $ 29,965,817 (Continued) See accompanying Notes to the Basic Financial Statements. 26 City of Santa Clarita Balance Sheet (Continued) Governmental Funds June 30, 2025 Special Revenue Funds Measure R Nonmajor Total Highway Governmental Governmental TDA Improvement Funds Funds ASSETS Cash and investments $ 14,405,090 $ - $ 155,103,417 $ 529,749,175 Accounts receivable, net - - 255,711 1,012,139 Interest receivable 87,312 - 883,091 3,198,392 Taxes receivables - - 1,149,024 15,184,319 Loans receivable - - 1,848,786 1,848,786 Leases receivable - - 4,863,017 Notes to RDA Successor Agency - - 7,868,635 13,901,006 Prepaid items - - 435,362 2,395,435 Due from other governments - 12,404,745 4,646,240 17,471,166 Due from other funds - - - 9,182,339 Advance to other funds - - - 7,143,850 Deposits with others - - - 60,000 Restricted assets: Cash and investments with fiscal agents - - 3,968 4,694 Cash and investments with PARS - - - 2,713,274 Total assets $ 14,492,402 $ 12,404,745 $ 172,194,234 $ 608,727,592 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 13,545,120 $ 4,402,939 $ 8,529,557 $ 50,292,864 Deposit payable - - - 4,793,440 Due to other funds - 8,001,806 1,180,533 9,182,339 Due to the Successor Agency - - 34,479 7,734,479 Due to other government - - - 27,039 Unearned revenue - - 620,654 1,699,770 Advance from other funds - - - 7,143,850 Total liabilities 13,545,120 12,404,745 10,365,223 80,873,781 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - 1,138,824 2,646,578 6,193,242 Leases - - - 4,708,011 Total deferred inflows of resources - 1,138,824 2,646,578 10,901,253 Fund Balances: Nonspendable - - 8,303,997 23,500,291 Restricted 947,282 - 150,030,435 205,271,759 Assigned - - 1,700,014 226,976,251 Unassigned (deficit) - (1,138,824) (852,013) 61,204,257 Total fund balances 947,282 (1,138,824) 159,182,433 516,952,558 Total liabilities, deferred inflows of resources, and fund balances $ 14,492,402 $ 12,404,745 $ 172,194,234 $ 608,727,592 (Concluded) See accompanying Notes to the Basic Financial Statements. 27 This page intentionally left blank. 28 City of Santa Clarita Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position June 30, 2025 Total Fund Balances - Total Governmental Funds $ 516,952,558 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 $ 363,082,729 Depreciable assets, net of $1,457,079 reported in Internal Service Funds 906,674,743 Intangible assets 3,432,736 1,273,190,208 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. 6,193,242 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 $80,425 reported in Internal Service Funds 21,048,935 Net pension liabilities, net of $(142,505) reported in Internal Service Funds (37,294,760) Deferred inflows of resources related to pensions, net of $(3,104) reported in Internal Service Fund (812,549) 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 $21,675 reported in Internal Service Funds 7,030,112 Net OPEB asset net of $17,828 reported in Internal Service Funds 5,782,993 Deferred inflows of resources related to OPEB, net of $(49,263) reported in Internal Service Funds (15,978,330) 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. 15,401,663 Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the governmental funds. (421,794) 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 1,064,159 Long-term debt (89,384,795) Unamortized bond premium (3,480,903) Developers credits (40,624,783) Compensated absences, net of $(99,278) reported in Internal Service Funds (9,187,199) Net position of governmental activities $ 1,649,478,757 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, 2025 REVENUES: Taxes Licenses, and permits Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenues Total revenues EXPENDITURES: Current: General government Public safety Recreation and community services Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year, as previously reported Change within financial reporting entity: Major to/from nonmajor funds Beginning of year, as restated (Notel9) End of year Special Revenue Funds Landscape General Bridge and Impact Maintenance Fund Thoroughfare Fee District#1 $ 117,711,053 $ - $ - $ 313,546 11,548,817 - - - - - - 16,420,736 2,050,502 - - - 13,640,699 - - - 17,034,503 1,845,803 769,282 1,524,710 1,181,503 - - - - 2,968,222 5,652,880 - 984,183 598,932 183,044 - 164,151,260 5,412,957 6,605,206 18,258,992 14,708,928 - - 15,170,701 31,943,849 - 2,452,951 - 18,593,631 - - - 9,958,758 181,327 - - 18,578,903 - - - 3,052,570 - - 181,566 25,175,590 3,017,604 1,168,419 415,005 1,044,155 - 72,512 759,975 123,128,896 3,958,906 3,621,370 15,767,272 41,022,364 1,454,051 2,983,836 2,491,720 1,991,857 - - - 3,366,966 - - 27,032 (23,443,127) (88,186) (448,474) (1,161,803) (18,084,304) (88,186) (448,474) (1,134,771) 22,938,060 1,365,865 2,535,362 1,356,949 281,927,634 14,589,203 6,315,322 26,933,272 281,927,634 14,589,203 61315,322 26,933,272 $ 304,865,694 $ 15,955,068 $ 8,850,684 $ 28,290,221 (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, 2025 REVENUES: Taxes Licenses, and permits Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenues Total revenues EXPENDITURES: Current: General government Public safety Recreation and community services Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year, as previously reported Change within financial reporting entity: Major to/from nonmajor funds Beginning of year, as restated (Note 19) End of year Special Revenue Funds Measure R Nonmajor Total Highway Governmental Governmental TDA Improvement Funds Funds $ - $ - $ 14,238,053 $ 132,262,652 - - - 11,548,817 - - 26,417,735 42,838,471 12,364,293 17,534,948 39,429,406 71,379,149 - - 1,385,221 15,025,920 420,034 - 7,548,685 29,143,017 - - 1,053,822 2,235,325 - - 1,880,081 10,501,183 - - 839,246 2,605,405 12,784,327 17,534,948 92,792,249 317,539,939 - - 10,306,521 40,186,150 - - 517,742 34,914,542 - - - 18,593,631 13,536 - 8,504,318 18,657,939 - - 2,385,211 20,964,114 - - 31,776,313 35,010,449 10,557,962 17,606,072 32,688,831 90,629,483 - - 3,182,887 4,227,042 - - 3,083,278 3,915,765 10,571,498 17,606,072 92,445,101 267,099,115 2,212,829 (71,124) 347,148 50,440,824 - - 187,519 2,179,376 - - 26,620,469 30,014,467 (611,582) - (8,394,023) (34,147,195) (611,582) - 18,413,965 (1,953,352) 1,601,247 (71,124) 18,761,113 48,487,472 - - 138,699,655 468,465,086 (653,965) (1,067,700) 1,721,665 - (653,965) (1,067,700) 140,421,320 468,465,086 $ 947,282 $ (1,138,824) $ 159,182,433 $ 516,952,558 (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, 2025 Net change in fund balances - total governmental funds: $ 48,487,472 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 and amortization expense. This is the amount by which capital expenditures exceeded depreciation and amortization in the current period: Capital outlay expenditures, net of $244,088 reported in Internal Service Funds $ 76,066,013 Depreciation and amortization expense, net of $(324,852) reported in Internal Service Funds (35,183,348) 40,882,665 The net effect of disposal of capital assets, net of $(15,162) reported in Internal Service Funds 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 $(13,322) 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 The issuance of Bridge and Thoroughfare district credits does not impact governmental funds, but increases long-term liabilities in the Statement of Net Position. Redemptions of the credit does not impact expenditures in the governmental funds, but reduces long-term liabilities in the Statement of Net Position. Net effect of (issuance) use of district credits 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 (2,632,345) 590,819 (1,095,855) (4,412,483) 2,674,734 15,517 4,227,042 114,611 (2,179,376) (4,813,085) 2,026,299 $ 83,886,015 See accompanying Notes to the Basic Financial Statements. 32 PROPRIETARY FUND FINANCIAL STATEMENTS 33 This page intentionally left blank. 34 City of Santa Clarita Statement of Net Position Proprietary Funds June 30, 2025 ASSETS Current assets: Cash and investments 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 $ 28,106,638 169,318 4,120,319 35,289 32,431,564 142,638 15,487,638 65,535,422 81,023,060 81,165,698 113,597,262 769,582 173,407 942,989 Internal Service Funds $ 26,034,016 155,495 26,189,511 17,828 1,457,079 1,457,079 1,474,907 27,664,418 80,425 21,675 102,100 7,103,475 126,026 143,836 16,613 - 1,676,000 7,247,311 77,468 1,363,600 1,441,068 8,688,379 29,708 394,121 423,829 1,818,639 82,665 10,268,679 142,505 10,493,849 12,312,488 3,104 49,263 52,367 81,023,060 1,457,079 24,404,983 13,944,584 $ 105,428,043 $ 15,401,663 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, 2025 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, as previously reported Change in accounting principal Beginning of year, as restated (Note 19) End of year Transit Enterprise Fund Business -type Governmental Activities Activities Internal Service Funds $ 6,356,158 $ 6,466,498 1,247,679 31,007 7,603,837 6,497,505 3,239,153 494,600 24,932,555 - 4,164,309 4,927,485 6,849,764 324,852 39,185,781 5,746,937 (31,581,944) 750,568 23,929,561 - 1,285,375 1,250,793 59,419 24,938 25,274,355 1,275,731 5,000,000 (867,272) 4,228,982 8,361,710 2,054,121 2,026,299 103,463,088 13,413,239 (89,166) (37,875) 103,373,922 13,375,364 $ 105,428,043 $ 15,401,663 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, 2025 Business -type Governmental Activities Activities Transit Internal Enterprise Fund Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers and users $ 7,616,503 $ 6,523,918 Cash paid to suppliers for goods and services (27,751,700) (428,420) Cash paid to employees for services (1,733,823) (446,662) Cash paid to claims - (2,174,170) Net cash provided by (used in) operating activities (21,869,020) 3,474,666 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash transferred out (867,272) - Cash transferred in 5,000,000 - Federal and state funding received 22,464,528 - Net cash provided by noncapital fmancing activities 26,597,256 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital grants and contributions 4,228,982 - Acquisition of capital assets (3,338,479) (244,088) Proceed from sale of capital assets 59,419 40,100 Net cash provided by (used in) capital and related fmancing activities 949,922 (203,988) CASH FLOWS FROM INVESTING ACTIVITIES: Investment income received 1,210,192 1,189,178 Net cash provided by investing activities 1,210,192 1,189,178 Net increase in cash and cash equivalents 6,888,350 4,459,856 CASH AND CASH EQUIVALENTS: Beginning of year 21,218,288 21,574,160 End of year $ 28,106,638 $ 26,034,016 NET INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ (31,581,944) 750,568 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 6,849,764 324,852 Change in assets and liabilities: (Increase) decrease in accounts receivable 12,666 26,413 (Increase) decrease in prepaid items (20,430) - (Increase) decrease in net pension asset (118,995) 5,060 (Increase) decrease in net OPEB asset 40,479 (12,436) (Increase) decrease in deferred outflows of resources related to pensions 300,134 31,366 (Increase) decrease in deferred outflows of resources related to OPEB (51,000) (6,375) Increase (decrease) in accounts payable and accrued liabilities 2,761,747 (16,475) Increase (decrease) in compensated absences 13,819 13,322 Increase (decrease) in claims and judgements - 2,367,373 Increase (decrease) in deferred inflows of resources related to pensions (19,806) (2,070) Increase (decrease) in deferred inflows of resources related to OPEB (55,454) (6,932) Total adjustment 9,712,924 2,724,098 Net cash provided by (used in) operating activities $ (21,869,020) $ 3,474,666 See accompanying Notes to the Basic Financial Statements. 37 This page intentionally left blank. 38 FIDUCIARY FUND FINANCIAL STATEMENTS 39 This page intentionally left blank. 40 City of Santa Clarita Statement of Fiduciary Net Position Fiduciary Funds June 30, 2025 Pension (and Other Employee Benefit) Private -Purpose Trust Fund Trust Fund Other Post Redevelopment Employment Benefits Successor Custodial ("OPEB") Trust Fund Agency Funds ASSETS Cash and investments $ - $ 1,000,469 $ 2,037,916 Interest receivable 115,871 6,003 12,255 Contributions receivable - - 116,753 Due from the City - 7,734,479 - Restricted: Cash and investments held with PARS: Cash and cash equivalents 1,376,091 - - U.S. Treasury 4,172,270 - - U.S. government sponsored enterprise securities 4,677,007 Corporate notes 6,102,773 - - Foreign notes 376,405 - - Mutual funds - equity 32,932,380 - - Mutual funds - fixed income 5,001,070 - - Cash and investments with fiscal agent - 1,878,896 2,818,928 Total assets 54,753,867 10,619,847 4,985,852 DEFERRED OUTFLOWS OF RESOURCES Unamortized loss on refunding - 1,704,364 - Total deferred outflows of resources - 1,704,364 - LIABILITIES Accounts payable and accrued liabilities - 333 666 Interest payable - 265,651 - Long term liabilities, due within one year - 1,123,660 - Long term liabilities, due in more than one year - 41,020,930 - Total liabilities - 42,410,574 666 NET POSITION Restricted for: Other postemployment benefits 54,753,867 - - Individual, organizations, and other governments - (30,086,363) 4,985,186 Total net position (deficit) $ 54,753,867 $ (30,086,363) $ 4,985,186 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, 2025 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 $ - $ 3,068,680 $ - Special assessment from property owners - - 2,399,001 Employer contributions 359,000 - - Net investment income 5,356,309 49,429 95,798 Total additions 5,715,309 3,118,109 2,494,799 DEDUCTIONS: Benefit payments to plan participants 1,921,591 - - Administrative expenses 96,322 3,516 56,641 Payments for debt services - 1,380,201 2,239,406 Payments to other governments - - 32,109 Total deductions 2,017,913 1,383,717 2,328,156 Change in net position 3,697,396 1,734,392 166,643 NET POSITION: Beginning of year 51,056,471 (31,820,755) 4,818,543 End of year $ 54,753,867 $ (30,086,363) $ 4,985,186 See accompanying Notes to the Basic Financial Statements. 42 NOTES TO THE BASIC FINANCIAL STATEMENTS 43 This page intentionally left blank 44 City of Santa Clarita Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2025 Note 1— Summary of Significant Accounting Policies.......................................................................................47 A. Financial Reporting Entity...................................................................................... B. Basis of Accounting and Measurement Focus ........................................................ C. Cash, Cash Equivalents and Investments................................................................ D. Cash and Investments with Fiscal Agents............................................................... E. Fair Value Measurement......................................................................................... F. Interf nid Transactions............................................................................................ G. Allowance for Uncollectible Accounts................................................................... H. Prepaid Items.......................................................................................................... I. Lease Receivable..................................................................................................... J. Capital Assets.......................................................................................................... K. Deferred Outflows and Inflows of Resources......................................................... L. Unearned and Unavailable Revenue....................................................................... M. Long -Term Debt..................................................................................................... N. Lease Liabilities...................................................................................................... O. Subscription Liabilities........................................................................................... P. Compensated Absences........................................................................................... Q. Claims and Judgements........................................................................................... R. Pensions.................................................................................................................. S. Other Postemployment Benefits("OPEB")............................................................ T. Property Taxes and Special Assessments............................................................... U. Net Position and Fund Balances............................................................................. V. Use of Estimates...................................................................................................... W. Implementation of New GASB Pronouncements................................................... Note 2 — Cash and Investments ...........................47 ...........................48 ...........................52 ...........................52 ...........................52 ...........................53 ........................... 53 ...........................53 ...........................53 ...........................54 ........................... 55 ........................... 55 ........................... 55 ........................... 55 ...........................56 ...........................57 ...........................57 ........................... 57 ...........................57 ........................... 58 ........................... 58 ........................... 60 ...........................60 .....60 A. Deposits................................................................................................................................................61 B. Investments..........................................................................................................................................62 C. Investments Authorized by Debt Agreements.....................................................................................63 D. Risk Disclosures...................................................................................................................................63 E. Fair Value Measurement......................................................................................................................65 F. Local Agency Investment Fund ("LAIF")...........................................................................................65 G. Los Angeles County Pooled Investment Fund("LACPIF")................................................................65 H. California Asset Management Program ("CAMP")............................................................................66 Note3 — Accounts Receivable...............................................................................................................................66 Note4 — Loans Receivable....................................................................................................................................66 Note 5 — Due from the Successor Agency............................................................................................................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...................................................................................................................................68 45 City of Santa Clarita Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note9 — Capital Assets..........................................................................................................................................70 A. Governmental Activities......................................................................................................................70 B. Business -Type activities......................................................................................................................71 Note10 —Deposit Payable.....................................................................................................................................72 Note11— Long -Term Liabilities..........................................................................................................................72 A. Governmental Activities......................................................................................................................72 B. Business -Type Activities....................................................................................................................79 C. Fiduciary Activities..............................................................................................................................79 D. Non -City Obligation............................................................................................................................81 Note12 — Risk Management.................................................................................................................................82 A. Special Districts Risk Management Authority ("SDRMA")...............................................................82 B. California Joint Powers Insurance Authority ("CJPIA").....................................................................82 C. Claims and Judgments Payable............................................................................................................84 Note13 — Pension Plan..........................................................................................................................................84 A. General Information about the Pension Plan .......................................................................................84 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 Investments 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 — Restatement of Beginning Fund Balances and Net Position.............................................................97 A. Changes to or within the Financial Reporting Entity...........................................................................97 B. Change in Accounting Principal and Correction of Error....................................................................97 Note 20 — Santa Clarita Watershed Recreation and Conservancy Authority..................................................97 Note 21— Commitments and Contingencies........................................................................................................98 A. Project Commitments...........................................................................................................................98 B. Encumbrances......................................................................................................................................98 C. Contingencies.......................................................................................................................................98 Note 22 — Other Required Disclosure..................................................................................................................99 A. Deficit Net Positions and Fund Balances.............................................................................................99 46 City of Santa Clarita Notes to the Basic Financial Statements For the Year Ended June 30, 2025 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, 2025 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, 2025 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 Impact Fees Special Revenue Fund is used to account for impact fees received from new development projects and are required to be used only for those purposes for which the impact fees were collected. The City has elected the Impact Fee Fund as a major fund for financial presentation purposes. 49 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 1— Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) ➢ The Landscape Maintenance District #1 Special Revenue Fund is used to account for property tax receipts and disbursements related to the landscape maintenance district. The City has elected the Landscape Maintenance District #1 Special Revenue Fund as a major fund for public interest purposes. ➢ Transportation Development Act 8 ("TDA") Special Revenue Fund is used to account for monies received from the State of California under Article 8 of the TDA. These funds are restricted for local streets and road expenditures when the City's unmet transportation needs have been satisfied. ➢ Measure R Highway Improvement Program Special Revenue Fund is used 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. 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, 2025 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 $48,918. 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, 2025 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 I — 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, 2025 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 interf nid 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, 2025 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 $10,000 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, 2025 Note 1— Summary of Significant Accounting Policies (Continued) J. Capital Assets (Continued) Riyht_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 of Resources represent a consumption of net assets that apply to future periods. De erred In ows of Resources 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, 2025 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, 2025 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 and sick leave (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 leaves, which is payable from available resources, is recorded as an expenditure 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 ofineasuring 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, 2023 Measurement Date June 30, 2024 Measurement Period July 1, 2023 to June 30, 2024 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 ("OPEW) 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, 2025 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, 2024 Measurement Date June 30, 2025 Measurement Period July 1, 2024 to June 30, 2025 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 I 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 I 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, 2025 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 Whim 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, 2025, the balance totaled $26,350,000, 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, 2025 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 Pronouncements The requirements of the following accounting standards are effective for the purpose of implementation for the year ended June 30, 2025. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations. GASB Statement No. 101— In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement resulted in restatement of beginning net position at July 1, 2024 presented in Note 19. GASB Statement No. 102 — In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints which may limit a government's ability to acquire resources or control spending. Application of this statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2025. Note 2 — Cash and Investments The City had the following cash and investments at June 30, 2025: Government -Wide Fiduciary Statement of Net Position Fund Governmental Business -Type Statement of Activities Activities Net Position Total Cash and investments $ 555,783,191 $ 28,106,638 $ 3,038,385 $ 586,928,214 Restricted cash and investments 2,717,968 - 59,335,820 62,053,788 Total cash and investments $ 558,501,159 $ 28,106,638 $ 62,374,205 $ 648,982,002 The City's cash and investments at June 30, 2025, in more detail: Deposits with financial institutions $ 39,139,890 Cash on hand 4,569 Total cash 39,144,459 Investments 547,778,741 Investments with fiscal agent 4,707,532 Investment with PARS 57,351,270 Total investments 609,837,543 Total cash and investments $ 648,982,002 60 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 2 — Cash and Investments (Continued) A. Deposits The carrying amounts of the City's demand deposits were $39,139,890 at June 30, 2025. Bank balances at that date were $37,186,714 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. 61 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 2 — Cash and Investments (Continued) B. Investments The following table identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy: Authorized Investment Type Maximum Maturity Maximum Percentage Allowed * Maximum Investments in One Issuer ** City Bonds 5 years None 5% U.S. Treasuries 5 years None None State Bonds 5years None 5% Municipal Bonds 5years None 5% U.S. Governmental -Sponsored Enterprise securities 5 years None None Supranationals/unsubordinated Obligations 5 years 30% 10% Banker's Acceptances 180 days 40% 5% Commercial Paper 270 days 40% 5% Negotiable Certificates of Deposit 5 years 30% 5% Repurchase Agreements 1 year None None Corporate Notes 5 years 30% 5% Money Market Funds 5 years 20% 10% Collateralized Certificates of Deposit 5 years None None 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. 62 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 2 — Cash and Investments (Continued) C. Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Maximum Percentage Investments in Authorized Investment Type Maturity Allowed One Issuer U.S. Treasury Obligations N/A 50% None U.S. Government -Sponsored Enterprise Securities 5 years None None Money Market Funds 5 years None None State of California Local Agency Investment Fund (LAIF) 5 years 30% None D. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits investments to a maximum maturity of five years. At June 30, 2025, 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) $ 5,938,133 $ - $ - $ 5,938,133 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 Investment with PARS Restricted with Fiscal Agent: Money Market Funds Total $ 38,288,202 38,288,202 2,667,799 2,667,799 702,020 - - 702,020 - 11,428,214 82,382,839 93,811,053 27,730,945 62,298,706 173,456,202 263,485,853 - - 32,280,031 32,280,031 10,068,635 27,068,826 73,468,189 110,605,650 1,854,923 594,024 54,902,323 57,351,270 4,707,532 - - 4,707,532 91,958,189 $ 101,389,770 $ 416,489,584 $ 609,837,543 63 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 2 — Cash and Investments (Continued) D. Risk Disclosures (Continued) Credit Risk Generally, Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, by Standard and Poor's and Moody's at June 30, 2025 for each investment type: Fair Value Minimum at Legal Investment Type June 30, 2025 Rating Local Agency Investment Fund (LAIF) $ 5,938,133 N/A California Asset Management Program (CAMP) 38,288,202 N/A Los Angeles County Pooled Investment Fund (LACPIF) 2,667,799 N/A Money Market Funds 702,020 AAA United States Government Sponsored Enterprise Securities 93,811,053 N/A US Treasuries Securities 263,485,853 N/A Asset Backed Securities 32,280,031 AA - Corporate Notes 110,605,650 A - Investment with PARS 57,351,270 N/A Restricted with Fiscal Agent: Money Market Funds 4,707,532 N/A Total $ 609,837,543 N/A - Not Required Not Required to be AAA Others Not Rated Rated $ $ $ $ 5,938,133 38,288,202 - 2,667,799 702,020 - 93,811,053 263,485,853 - 25,121,763 - 7,158,268 8,256,541 102,349,109 - - 796,099 4,377,249 164,662 52,013,260 4,707,532 - - - $ 396,880,861 $ 106,726,358 $ 7,322,930 $ 98,907,394 The actual rating for the "Others" Category above as follows: Investment Type AA A BBB BB Total Corporate Notes $ 28,569,563 $ 72,393,950 $ 1,385,596 $ - $ 102,349,109 Investment with PARS 129,416 1,837,038 2,342,302 68,493 4,377,249 $ 28,698,979 $ 74,230,988 $ 3,727,898 $ 68,493 $ 106,726,358 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, 2025, the following investment represent 5% or more of total City investments: Issuers Investment Type Amount Percentage Federal Home Loan Mortgage Corporation Collateralized Mortgage Obligation $ 90,420,239 17% 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, 2025, 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, 2025 Note 2 — Cash and Investments (Continued) E. Fair Value Measurement At June 30, 2025, 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, 2025: Measurement Input Quoted Prices in Active Significant Market for Identical Other Observable Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Local Agency Investment Fund (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 Asset Backed Securities Corporate Notes Investment with PARS Restricted with Fiscal Agent: Money Market Funds Total - $ - $ 5,938,133 $ - 93,811,053 263,485,853 - 32,280,031 110,605,650 57,351,270 263,485,853 $ 294,048,004 $ 38,288,202 2,667,799 702,020 4,707,532 52,303,686 $ Total 5,938,133 38,288,202 2,667,799 702,020 93,811,053 263,485,853 32,280,031 110,605,650 57,351,270 4,707,532 609,837,543 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, 2025, the City had $5,938,133 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. 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, 2025, the City had $2,667,799 invested in the LACPIF. 65 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 2 — Cash and Investments (Continued) 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, 2025, the City had $38,288,202 invested in the CAMP. Note 3 — Accounts Receivable Accounts receivable as of June 30, 2025, 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 General Landscape Governmental Fund Maintenance Funds $ 1,093,980 $ 6,350 $ 340,058 (343,902) - (84,347) $ 750,078 $ 6,350 $ 255,711 The loans receivable balance in the governmental funds totaled $1,848,786 at June 30, 2025. 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, 2025, $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, 2025 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, 2025, the loan balance reported in the General Fund and Developer Fees Special Revenue Fund were $6,032,371 and $7,868,635, respectively, including the unpaid accrued interest of $3,780,777 and $2,548,748, respectively. Note 7 — Lease Receivables Lease receivable consists of agreements with lessees of the City 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, 2025, the City recognized $468,549 in lease revenue and $16,285 in lease interest revenue for General Fund. The outstanding lease receivable is in the amount of $4,863,017 for General Fund. The future receipts for these leases, including interest, are as follows: Year Ending June 30, Principal Interest Total 2026 2027 2028 2029 2030 2031-2035 2036-2040 2041-2042 Total Note 8 — Interfund Transactions A. Due From/To Other Funds $ 533,858 $ 15,082 $ 548,940 454,404 13,854 468,258 463,428 12,604 476,032 435,190 11,359 446,549 437,165 10,141 447,306 1,780,459 32,731 1,813,190 667,159 9,066 676,225 91,354 281 91,635 $ 4,863,017 $ 105,118 $ 4,968,135 At June 30, 2025, the City had the following due from/to other funds: Due to Other Funds: Measure R Highway Improvement Nonmajor Governmental Funds Total Due from Other fund General Fund $ 8,001,806 1,180,533 $ 9,182,339 The above amounts resulted from temporary reclassifications made at June 30, 2025 to cover cash shortfalls. 67 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 8 — Interfund Transactions (Continued) B. Advances To/From Other Funds At June 30, 2025, the City had the following advances: Advances to Other Funds Advances from Other Funds General Fund Bridge and Thoroughfare $ 7,143,850 Bridge and Thoroughfare In December 2024, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $7,000,000 for the construction of the Vista Canyon Bridge over the Santa Clara River to connect Soledad Canyon Road to the Vista Canyon development. 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. At June 30, 2025, the amount of the advance outstanding is $7,143,850. C. Transfers In/Out During the year ended June 30, 2025, the City had the following transfers in/out: Transfers in Governmental Funds Proprietary Fund Landscape Nonmajor Transit General Maintenance Governmental Enterprise Transfers out Fund District #1 Funds Fund Total General Fund $ - $ 10,000 $ 23,433,127 $ - $ 23,443,127 Bridge and Thoroughfare Fund - - 88,186 - 88,186 Impact Fee Fund 448,474 - - - 448,474 Landscape Maintenance District#1 614,157 - 547,646 - 1,161,803 TDA Fund - - 611,582 - 611,582 Nonmajor Governmental Funds 1,457,785 - 1,936,238 5,000,000 8,394,023 Transit Enterprise Fund 846,550 17,032 3,690 - 867,272 Total $ 3,366,966 $ 27,032 $ 26,620,469 $ 5,000,000 $ 35,014,467 The General Fund made transfers of $10,000 to Landscape Maintenance District #1 Special Revenue Fund for the Summit Park maintenance and $23,433,127 to the nonmajor governmental funds for the following: • Areawide Special Revenue Fund for $14,790,840 to provide for urban forestry and parks and parks facilities maintenance. • 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 $4,260,103. • General Capital Projects funds for capital improvement projects in the amount of $3,785,045. • Housing Successor Agency Special Revenue Fund in the amount of $277,203 as its 20% portion of the Successor Agency loan repayment. • Civic Arts Capital Projects Fund towards costs related to labor, material, and installation of the art component in the amount of $219,936 for the Rink Sports Pavilion Art. • Gas Tax Special Revenue Fund for non -street operations in the amount of $100,000. 68 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 8 — Interfund Transactions (Continued) C. Transfers In/Out (Continued) The Bridge and Thoroughfare Special Revenue Fund made transfer of $88,186 to nonmajor governmental funds (General Fund Capital Projects Fund) for Vista Canyon Bridge. The Impact Fee Special Revenue Fund transferred $448,474 to the General Fund for the 5% administrative fee from Fire District fees and for costs related to the Sheriffs Station. The Landscape Maintenance District #1 Special Revenue Fund made the following transfers: • $614,157 into the General Fund, consisting $40,000 for the graffiti removal and personnel costs and $574,157 for pension payments. • $547,646 into Areawide Special Revenue Fund for the maintenance of medians in Zone T1B Plum/Whites Canyon Road. The TDA Special Revenue Fund transferred $611,582 to nonmajor government funds (Gas Tax Special Revenue Fund) for street operations. The nonmajor governmental funds made transfers of $1,457,785 to the General Fund mainly for the following: • $501,540 from Traffic Safety Special Revenue Fund to fund traffic deputies as the budget is part of the sheriff s contract. • $514,727, $122,833, and $101,947 from Stormwater Special Revenue Fund, OSPD Special Revenue Fund, and Street Light District Special Revenue Fund, respectively, for pension payments. • $115,762 from Housing Successor Special Revenue Fund for Successor Agency loan interest. • $67,000 from Gas Tax Special Revenue Fund for eligible gas tax expenditures. • $33,977 from Measure H Homeless Initiatives Special Revenue Fund for the homeless coordinator charges. 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 $1,703,497 and $232,741 from Measure A Safe Parks Special Revenue Fund to Areawide Special Revenue Fund for park maintenance. Transfer from nonmajor governmental funds (Proposition A Special Revenue Fund) to Transit Enterprise Fund in the amount of $5,000,000 was to contribute toward the funding of the Vista Cyn Metrolink Station. The Transit Enterprise Fund transferred $846,550 to the General Fund of which the $150,000 was mainly to support the senior center transit operations and $696,550 was for the proportional share of Metrolink station maintenance, $17,032 to Landscape Maintenance District #1 Special Revenue Fund for the maintenance at Vista Canyon Transit Center, and $3,690 to the nonmajor governmental fund (Stormwater Special Revenue Fund) for the cost of sweeping at the Metrolink stations. 69 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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, 2025 is as follows: Balance Balance July 1, 2024 Transfers Additions Deletions June 30, 2025 Capital assets, not being depreciated: Land $ 264,016,645 $ - $ 2,841,861 $ (420,957) $ 266,437,549 Construction in progress 53,039,073 (1,866,280) 46,103,240 (630,853) 96,645,180 Total capital assets, not being depreciated 317,055,718 (1,866,280) 48,945,101 (1,051,810) 363,082,729 Capital assets, being depreciated: Site improvements 109,844,090 1,659,277 3,196,327 (27,534) 114,672,160 Building improvements 241,557,072 - 459,941 (10,161) 242,006,852 Equipment 15,988,019 - 1,791,021 (788,925) 16,990,115 Infrastructure 1,125,050,281 207,003 20,038,335 (1,525,200) 1,143,770,419 Total capital assets, being depreciated 1,492,439,462 1,866,280 25,485,624 (2,351,820) 1,517,439,546 Less accumulated depreciation for: Site improvements (35,017,672) - (5,073,990) - (40,091,662) Building improvements (41,006,795) - (4,987,805) - (45,994,600) Equipment (11,057,116) - (1,124,794) 710,367 (11,471,543) Infrastructure (488,727,654) - (23,068,021) 45,756 (511,749,919) Total accumulated depreciation (575,809,237) - (34,254,610) 756,123 (609,307,724) Total capital assets, being depreciated, net 916,630,225 1,866,280 (8,768,986) (1,595,697) 908,131,822 Intangible assets, being amortized: Right -to -use leased building 756,272 - 94,071 (271,871) 578,472 Right -to -use leased equipment 346,668 - 945,878 (346,668) 945,878 Right -to -use leased infrastructure 275,110 - 48,408 - 323,518 Right -to -use subscription assets 3,923,542 - 791,019 (930,252) 3,784,309 Total intangible assets, being amortized 5,301,592 - 1,879,376 (1,548,791) 5,632,177 Less accumulated amortization for: Right -to -use leased building (456,347) - (171,803) 271,871 (356,279) Right -to -use leased equipment (346,668) - (214,917) 346,668 (214,917) Right -to -use leased infrastructure (206,907) - (70,436) - (277,343) Right -to -use subscription assets (1,484,720) - (796,434) 930,252 (1,350,902) Total accumulated amortization (2,494,642) - (1,253,590) 1,548,791 (2,199,441) Total intangible assets, being amortized, net 2,806,950 - 625,786 - 3,432,736 Governmental activities capital assets, net $ 1,236,492,893 $ - $ 40,801,901 $ (2,647,507) $ 1,274,647,287 70 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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, 2025 as follows: General government $ 2,648,451 Public safety 1,434,643 Recreation and community service 5,677,969 Neighborhood services 1,224,249 Public works 1,116,513 Community development 13,502 Internal service funds 324,852 Allocated depreciation and amortization 12,440,179 Unallocated infrastructure 23,068,021 Total depreciation and amortization expense - governmental activities $ 35,508,200 B. Business -Type Activities A summary of changes in the capital assets for the business -type activities for the year ended June 30, 2025 is as follows: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Site improvements Building improvements Equipment Total capital assets, being depreciated Less accumulated depreciation for: Site improvements Building improvements Equipment Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net Balance Balance July 1, 2024 Transfers Additions Deletions June 30, 2025 $ 15,087,880 $ $ - $ $ 15,087,880 233,090 166,668 399,758 15,320,970 166,668 15,487,638 21,361,242 121,650 21,482,892 46,675,637 - 46,675,637 70,768,181 3,050,161 (4,500,279) 69,318,063 138,805,060 3,171,811 (4,500,279) 137,476,592 (7,374,139) (887,050) (8,261,189) (18,461,203) (1,024,103) - (19,485,306) (43,756,343) - (4,938,611) 4,500,279 (44,194,675) (69,591,685) (6,849,764) 4,500,279 (71,941,170) 69,213,375 - (3,677,953) 65,535,422 $ 84,534,345 $ - $ (3,511,285) $ - $ 81,023,060 Depreciation expense in the amount of $6,849,764 was charged to Transit function of the business -type activities for the year ended June 30, 2025. 71 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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, 2025, deposits payable were as follows: General Fund: Deposits from developers Other deposits payable Total deposits payable Note 11— Long -Term Liabilities A. Governmental Activities $ 3,954,952 838,488 $ 4,793,440 A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025 is as follows: Governmental Activities: Lease Revenue Bonds Series 2016A (Golden Valley Road) Series 2016B (OSPD) Series 2019 (Sheriff Station) Series 2020A (Recreational Facility) Series 2020A-T (Recreational Facility) Series 2022A (Energy Efficiency) Series 2022B (Energy Efficiency) California Energy Commission 2024 Issuance premium Subtotal Revenue and Taxable Revenue Bonds Series 2018A (Streetlights) Series 2018B (Streetlights) Issuance premium Subtotal Financed purchase notes payable Lease liabilities Subscription liabilities Total bonds and notes payable, lease and subscription liabilities Compensated absences* Claims and judgments Total governmental activities * Shown as net change during the year. Balance July 1, 2024 Balance Due within Due in More (As Restated) Additions Deletions June 30, 2025 One Year Than One Year $ 7,010,000 $ $ (490,000) $ 6,520,000 $ 510,000 $ 6,010,000 11,090,000 (525,000) 10,565,000 565,000 10,000,000 24,260,000 (585,000) 23,675,000 610,000 23,065,000 10,645,000 10,645,000 - 10,645,000 2,080,000 (360,000) 1,720,000 365,000 1,355,000 12,165,000 (245,000) 11,920,000 255,000 11,665,000 5,640,000 (350,000) 5,290,000 370,000 4,920,000 2,700,000 300,000 - 3,000,000 233,218 2,766,782 3,248,324 - (190,297) 3,058,027 190,297 2,867,730 78,838,324 300,000 (2,745,297) 76,393,027 3,098,515 73,294,512 11,295,000 - - 11,295,000 - 11,295,000 1,720,000 (340,000) 1,380,000 350,000 1,030,000 438,845 (15,969) 422,876 15,969 406,907 13,453,845 (355,969) 13,097,876 365,969 12,731,907 64,218 - (34,464) 29,754 29,754 - 369,641 1,088,357 (485,462) 972,536 477,710 494,826 2,393,602 791,019 (812,116) 2,372,505 604,490 1,768,015 95,119,630 2,179,376 (4,433,308) 92,865,698 4,576,438 88,289,260 8,177,300 1,109,177 - 9,286,477 5,094,958 4,191,519 9,577,306 6,803,417 (4,436,044) 11,944,679 1,676,000 10,268,679 $ 112,874,236 $ 10,091,970 $ (8,869,352) $ 114,096,854 $ 11,347,396 $ 102,749,458 72 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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 $89,520,657 and $3,345,041, 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, 2025, were $6,520,000 for Series 2016A and $10,565,000 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 2026 $ 510,000 $ 186,900 $ 696,900 2027 530,000 166,100 696,100 2028 550,000 150,000 700,000 2029 555,000 138,950 693,950 2030 570,000 127,700 697,700 2031-2035 3,120,000 366,175 3,486,175 2036 685,000 10,275 695,275 Total $ 6,520,000 $ 1,146,100 $ 7,666,100 The future annual debt service requirements for the Lease Revenue Bonds, Series 2016B are as followed: Year Ending June 30, Principal Interest Total 2026 $ 565,000 $ 298,006 $ 863,006 2027 610,000 274,506 884,506 2028 655,000 255,756 910,756 2029 690,000 242,306 932,306 2030 725,000 228,156 953,156 2031-2035 4,195,000 845,472 5,040,472 2036-2038 3,125,000 143,775 3,268,775 Total $ 10,565,000 $ 2,287,977 $ 12,852,977 73 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Lease Revenue Bonds, Series 2019 (Sheriff 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 receives rental payments, which are pledged for repayment of the bonds. Interest on the Lease Revenue Bonds, Series 2019, is paid as part of a variable rate between 4 percent and 5 percent payable on June 1 and December 1 of each year commencing on December 1, 2019. Principal payments are due annually in various amounts commencing December 1, 2022, through June 1, 2049. The unpaid balance as of June 30, 2025, was $23,675,000. 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 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 710,000 719,313 1,429,313 2030 745,000 683,813 1,428,813 2031-2035 4,190,000 2,947,863 7,137,863 2036-2040 5,000,000 2,141,063 7,141,063 2041-2045 5,800,000 1,344,563 7,144,563 2046-2049 5,300,000 415,469 5,715,469 Total $ 23,675,000 $ 10,606,273 $ 34,281,273 Lease Revenue and Taxable Revenue Bonds, Series 2020A and 2020A-T (Recreational Facility) In October 2020, the Santa Clarita Public Financing Authority issued Lease Revenue Bonds Series 2020A and Taxable Lease Revenue Bonds Series 2020A-T (Recreational Facility), in the amount of $10,645,000 and $3,625,000 respectively. Interest on the bonds is paid as part of a fixed rate between 0.45% and 4.00% payable on December 1 and June 1 of each year commencing on December 1, 2020. Principal payments are due annually in various amounts commencing June 1, 2030 through June 1, 2050 for Series 2020A and June 1, 2021 through June 1, 2030 for Series 2020A-T. Net bond proceeds in the amount of $14,200,000 were used to reimburse the City in October 2020 for its acquisition of an approximately 4.4 acre parcel and 93,000 square foot recreational facility located at 27745 Smyth Drive within the City. The total unpaid balance as of June 30, 2025, was $12,365,000. 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. 74 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Lease Revenue and Taxable Revenue Bonds, Series 2020A and 202OA-T (Recreational Facility) (Continued) The future annual debt service requirements for the Lease Revenue Bonds, Series 2020A are listed below: Year Ending June 30, Principal Interest Total 2026 $ - $ 312,206 $ 312,206 2027 - 312,206 312,206 2028 - 312,206 312,206 2029 - 312,206 312,206 2030 165,000 312,206 477,206 2031-2035 2,120,000 1,416,981 3,536,981 2036-2040 2,375,000 1,166,081 3,541,081 2041-2045 2,725,000 813,525 3,538,525 2046-2050 3,260,000 281,938 3,541,938 Total $10,645,000 $ 5,239,555 $ 15,884,555 The future annual debt service requirements for the Taxable Revenue Bonds, Series 202OA-T are as followed: Year Ending June 30, Principal Interest Total 2026 $ 365,000 $ 31,879 $ 396,879 2027 370,000 26,452 396,452 2028 375,000 20,210 395,210 2029 385,000 12,834 397,834 2030 225,000 4,876 229,876 Total $ 1,720,000 $ 96,251 $ 1,816,251 Lease Revenue and Revenue Bonds, Series 2022A and 2022E (EneM Eiciency 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, 2025, was $17,210,000. 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. 75 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11- Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Lease Revenue and Revenue Bonds, Series 2022A and 2022E (EneM Efficiency Program) (Continued) The future annual debt service requirements for the Lease Revenue Bonds, Series 2022A are listed below: Year Ending June 30, Principal Interest Total 2026 $ 255,000 $ 554,300 $ 809,300 2027 270,000 541,550 811,550 2028 280,000 528,050 808,050 2029 295,000 514,050 809,050 2030 315,000 499,300 814,300 2031-2035 1,800,000 2,246,750 4,046,750 2036-2040 2,295,000 1,757,250 4,052,250 2041-2045 2,850,000 1,196,350 4,046,350 2046-2050 3,560,000 495,000 4,055,000 Total $11,920,000 $ 8,332,600 $ 20,252,600 The future annual debt service requirements for the Lease Revenue Bonds, Series 2022B are as followed: Year Ending June 30, Principal Interest Total 2026 $ 370,000 $ 255,250 $ 625,250 2027 390,000 236,250 626,250 2028 410,000 216,250 626,250 2029 425,000 195,375 620,375 2030 455,000 173,375 628,375 2031-2035 2,630,000 494,750 3,124,750 2036 610,000 15,250 625,250 Total $ 5,290,000 $ 1,586,500 $ 6,876,500 Revenue and Tax Revenue Bonds, Series 2018 A and 2018E (Streetli ht�quisition and Retrofit Program) In June 2018, the Authority issued 2018 Revenue Bonds Series A and 2018 Taxable Revenue Bonds Series B, in the amount of $11,295,000 and $4,005,000, respectively. Interest on the 2018 Revenue Bonds Series A, is paid as part of a variable rate between 3 percent and 5 percent payable on September 1 and March 1 of each year commencing on September 1, 2018. Principal payments are due annually in various amounts commencing September 1, 2018 through September 1, 2048, for the Series A bonds. The unpaid balance as of June 30, 2025, 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, 2025, was $1,380,000. 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. 76 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11- Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Revenue and Tax Revenue Bonds, Series 2018 A and 2018E (Streetli ht�quisition and Retrofit Program) (Continued) The future annual debt service requirements for the Revenue Bonds, Series 2018A are as followed: Year Ending June 30, Principal Interest Total 2026 $ - $ 465,394 $ 465,394 2027 - 465,394 465,394 2028 - 465,394 465,394 2029 100,000 462,894 562,894 2030 405,000 450,269 855,269 2031-2035 2,300,000 1,990,788 4,290,788 2036-2040 2,720,000 1,567,222 4,287,222 2041-2045 3,365,000 884,575 4,249,575 2046-2048 2,405,000 146,900 2,551,900 Total $ 11,295,000 $ 6,898,830 $ 18,193,830 The future annual debt service requirements for the 2018 Taxable Revenue Bonds Series B are as follows: Year Ending June 30, Principal Interest Total 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 $ 1,380,000 $ 97,116 $ 1,477,116 California EneM Commission ("CEC") Loan In March 2023, the City entered into loan agreement with California Energy Commission ("CEC") in the amount of $3,000,000 for the funding of the upgrades of existing interior and exterior lighting to LEDs, retrofits of existing HVAC equipment, and transformers to high efficiency units at multiple sites. The loan bears one percent interest and the principal and interest are due semi-annually commencing on December 22, 2025 through December 22, 2035. The funding of the loan is on reimbursement basis after incurring eligible project costs. The loan was fully funded in the year ended June 30, 2025. The future annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2026 $ 233,218 $ 72,815 $ 306,033 2027 279,059 26,974 306,033 2028 281,792 24,241 306,033 2029 284,681 21,352 306,033 2030 287,535 18,498 306,033 2031-2035 1,481,462 48,700 1,530,162 2036 152,253 763 153,016 Total $ 3,000,000 $ 213,343 $ 3,213,343 77 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Finance Purchase Notes PaI able 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 2026 $ 29,754 $ 531 $ 30,285 Lease Liabilities As of June 30, 2025, the City had 2 active building leases. The leases have payments that range from $5,771 to $6,400 and interest rates that range from .1650% to 2.6270%. The combined value of the right -to -use asset, as of June 30, 2025 of $578,472 with accumulated amortization of $356,279 is included within the capital asset table in Note 9. As of June 30, 2025, the City had 2 active equipment leases. The leases have payments that range from $788 to $125,000 and interest rates that range from .2847% to 2.9990%. The combined value of the right -to -use asset, as of June 30, 2025 of $945,878 with accumulated amortization of $214,917 is included within the capital asset table in Note 9. As of June 30, 2025, the City had one active infrastructure lease. The lease has receipts that range from $47,000 to $69,000 monthly with an interest rate of .1650%. The value of the right -to -use asset, as of June 30, 2025 of $323,518 with accumulated amortization of $277,343 is included within the capital asset table in Note 9. The future annual lease payments are as follows: Year Ending June 30, Principal Interest Total 2026 $ 477,710 $ 19,691 $ 497,401 2027 187,867 11,508 199,375 2028 142,813 7,253 150,066 2029 164,146 2,679 166,825 Total $ 972,536 $ 41,131 $ 1,013,667 Subscription Liabilities The City entered into subscription agreements with various vendors for software. The agreements expire from March 12, 2025 to June 30, 2030 with interest rates range from 1.58 percent to 2.65 percent. 78 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Subscription Liabilities (Continued) The future subscription payments are as follows: Year Ending June 30, Principal Interest Total 2026 $ 604,490 $ 60,956 $ 665,446 2027 644,558 45,050 689,608 2028 382,482 28,109 410,591 2029 360,264 18,673 378,937 2030 380,711 9,594 390,305 Total $ 2,372,505 $ 162,382 $ 2,534,887 Compensated Absences The balance at June 30, 2025, was $9,286,477. Claims and Judgments The balance at June 30, 2025, was $11,944,679. See Note 12 for more details. B. Business -Type Activities A summary of changes in long-term liabilities for business -type activities for the year ended June 30, 2025 is as follows: Balance July 1, 2024 Balance Due within Due in More (As Restated) Additions Deletions June 30, 2025 One Year Than One Year Business -type activities Compensated absences* $ 207,485 13,819 - $ 221,304 $ 143,836 $ 77,468 * Shown as net change during the year. C. Fiduciary Activities 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, 2024 Additions Deletions June 30, 2025 One Year Than One Year Fiduciary Activities: RDA Successor Agency: Loans from the City of Santa Clarita $ 15,059,877 $ 227,145 $ (1,386,016) $ 13,901,006 $ $ 13,901,006 Tax Allocation Bonds: Refunding Series 2017 28,695,000 - (1,030,000) 27,665,000 1,090,000 26,575,000 Unamortized Bond premium 612,247 - (33,663) 578,584 33,660 544,924 Total fiduciary activities $ 44,367,124 $ 227,145 $ (2,449,679) $ 42,144,590 $ 1,123,660 $ 41,020,930 79 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) C. Fiduciary Activities (Continued) Loans from the Citv of Santa Clarita At June 30, 2015, the California Department of Finance ("DOF") approved the advances to the former redevelopment agency consisting of the promissory notes outstanding between the City and the former redevelopment agency entered into between the periods of July 1996 and June 2010. These consist of notes outstanding from the General Fund and the Developer Fees Special Revenue Fund in the amounts of $7,225,964 and $5,407,868, respectively using a LAIF rate of 0.26 percent, which was in effect when the Oversight Board reinstated the loans on February 25, 2015. On September 22, 2015, the Committee on Budget and Fiscal Review of the California State Senate approved SB 107. A mandate of this legislation included a recalculation of the notes to the RDA Successor Agency using a 3 percent simple interest from the origination of the note, instead of the LAIF rate. As such, the City increased the amounts in the General Fund and Developer Fees Special Revenue Fund to reflect increased interest balances. The unpaid amount of these notes is $6,032,371 and $7,868,635, respectively, which include unpaid accrued interest of $3,780,777 and $2,548,748, 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 $1,704,364 as of June 30, 2025. 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, 2025, was $27,665,000. Tax revenues deposited to the Redevelopment Property Tax Trust Fund maintained by the County of Los Angeles, less (1) amounts payable by the State to the Successor Agency and (ii) unsubordinated Statutory Pass -Through Amounts, have been pledged as an available source of repayment for the bonds. If an Event of Default under the Indenture has occurred and is continuing, the Trustee may, with the prior written consent of the Assured Guaranty Municipal Corp (the "Insurer"), or if requested in writing by the Owners of the majority in aggregate principal amount of the Bonds then Outstanding, the Trustee shall, by written notice to the Successor Agency, declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable. The Insurer insured the Bonds maturing on October 1 of the years 2022 through 2037, inclusive, and 2042 (the "Insured Bonds"). The maturity of Insured Bonds shall not be accelerated without the consent of the Insurer and in the event the maturity of the Insured Bonds is accelerated, the Insurer may elect, in its sole discretion, to pay accelerated principal and interest accrued, on such principal to the date of acceleration (to the extent unpaid by the Successor Agency) and the Trustee shall be required to accept such amounts. 80 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) C. Fiduciary Activities (Continued) Tax Allocation Bond Refunding Series 2017 (Continued) 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 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 1,235,000 907,897 2,142,897 2030 1,275,000 856,725 2,131,725 2031-2025 7,170,000 3,513,331 10,683,331 2036-2040 8,575,000 2,061,381 10,636,381 2041-2043 5,985,000 365,500 6,350,500 Total $ 27,665,000 $ 10,688,791 $ 38,353,791 D. Non -City Obligations 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, 2025 was $185,000. Community Facilities District No. 2002-1 Special Tax Bonds On October 29, 2002, $17,370,000 of Special Tax bonds were issued for Community Facilities District No. 2002- 1 (the Community Facilities District). On October 12, 2012, these bonds were refunded with the issuance of Community Facilities District No. 2002-1 (Valencia Town Center) Special Tax Refunding bonds for $16,485,000. The Special Tax Refunding bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Community Facilities District. The principal amount of the debt outstanding at June 30, 2025 was $9,815,000. 81 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 11— Long -Term Liabilities (Continued) D. Non -City Obligations(Continued) Community Facilities District No. 2016-1 Vista Canes On February 13, 2020, $17,230,000 of Special Tax bonds were issued for Community Facilities District No. 2016- 1 (the Community Facilities District). The Special Tax Refunding bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Community Facilities District. The principal amount of the debt outstanding at June 30, 2025 was $16,740,000. Note 12 — Risk Management A. Special Districts Risk Management Authority ("SDRMA') The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors, and omissions; injuries to employees; and natural disasters. The City joined Special Districts Risk Management Authority ("SDRMA") in 2005. SDRMA is a self-insurance risk pool that serves as a not -for -profit public agency to its members. Through SDRMA, the City held various deductibles from 2005 through 2021. Beginning in fiscal year 2019-2020, the City held a $50,000 general liability deductible. All general liability claims above the City's deductible are handled by SDRMA's $10,000,000 liability limit. Additionally, the City carries a $15,000,000 excess liability policy to cover any losses over the $10,000,000 SDRMA limit. The City's workers' compensation coverage was also administered by SDRMA. The City was self - insured for workers' compensation up to $250,000, but purchased coverage through SDRMA for individual claims exceeding $250,000 up to a maximum of $5,000,000. Settlements have not exceeded coverages for each of the past three fiscal years. B. California Joint Powers Insurance Authority ("CJPIA') The City joined California Joint Powers Insurance Authority ("CJPIA") 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 Membership CJPIA is composed of 126 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. 82 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 12 — Risk Management (Continued) B. California Joint Powers Insurance Authority ("CJPIA') (Continued) 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: htips:Hcjpia.org/coverage/risk-sharing-pools/. 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. 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 $355,565,976. 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. Cyber Liability Insurance Program. The cyber liability program provides coverage for both first- and third -party claims. Members work directly with a cyber incident coach to investigate and respond to incidents. Protects against expenses the Insured incurs directly (i.e. Ist Party) in connection with a Privacy Incident, Network Security Incident, or Cyber Crime Incident. Protects against the city's liability to others (i.e. 3rd Party) in connection with a Privacy Incident, Network Security Incident, or Media Incident. There is a $100,000 deductible, with a $2,000,000 aggregate limit. There is a $10,000,000 pool aggregate limit for all members of the California JPIA. Examples of covered expenses include forensics, notification, identity monitoring, breach coaching, data restoration, systems restoration, extortion costs, business interruption loss, defense expense, damages, pre- judgement interests, judgments, post -judgment interests, settlements, PCI assessments, and consumer redress funds. Adeyuacv of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25. 83 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 12 — Risk Management (Continued) 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, 2025, and its two preceding years: Current Year Current Year Balance at Claims and Changes Claim Balance at Year Ended July 1 in Estimates Payments June 30 June 30, 2023 $ 4,645,360 $ 6,078,585 $ (3,283,349) $ 7,440,596 June 30, 2024 7,440,596 4,349,501 (2,212,791) 9,577,306 June 30, 2025 9,577,306 6,803,417 (4,436,044) 11,944,679 Note 13 — Pension Plan A. General Information about the Pension Plan Plan Description The City contribution to the California Public Employees Retirement System ("Ca1PERS"), an agent multiple - employer defined benefit pension plan for all permanent full-time general and some part-time employees of the City. CAPERS 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 statute 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, 2022 Annual Actuarial Valuation Report. This report and Ca1PERS' audited financial statements are publicly available reports that can be obtained at CAPERS' website under Forms and Publications. 84 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 13 — Pension Plan (Continued) A. General Information about the Pension Plan (Continued) Benefit Provided CAPERS 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: Benefit and Required Contribution Tier 1 Benefit formula 2.7% @ 55 Benefit vesting schedule 5 years of service Benefit payments Monthly for life Retirement age 50-55 Required employee contribution rates 8.000% Required employer contribution during measurement period 9.820% Applies to: Employees hired before April9, 2011 Miscellaneous Tier 2 2% @ 60 5 years of service Monthly for life 50-60 7.000% 9.820% Employees hired between April 9, 2011 and December 31, 2012 or those hired January 1, 2013, or later, who have been a classic CAPERS member with a public agency or in a classify reciprocal plan within the last 6 months* Tier 3 2% @ 62 5 years of service Monthly for life 52-62 7.250% 9.820% Employees hired January 1, 2013 or later * 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. CAPERS 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 CAPERS employers, and with certain other Retirement Systems with which Ca1PERS has reciprocity agreements). All members are eligible for non -duty disability benefits after 5 years of service. The death benefit is one of the following: Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees' Retirement Law. Employees Covered by Benefit Terms At June 30, 2023, the valuation date, the following employees were covered by the benefit terms: Active employees Transferred and terminated employees Retired Employees and Beneficiaries Total 492 542 304 1,338 85 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 13 — Pension Plan (Continued) A. General Information about the Pension Plan (Continued) Contrihution.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 CAPERS' 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, 2025 were in the amount of $7,761,451. B. Net Pension Liability Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on following actuarial methods and assumptions: Valuation Date Measurement Date Measurement Period Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation June 30, 2023 June 30, 2024 July 1, 2023 to June 30, 2024 Entry Age Actuarial 6.90% 2.300% Salary Increases Varies by Entry Age and Service Mortality Rate Table0) Derived using CaIPERS' Membership Data for all Funds. Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter (')The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CAPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CAPERS website. Changgo f Assumptions There were no assumption changes in 2024. Long-term Expected Rate o f 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. 86 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 13 — Pension Plan (Continued) B. Net Pension Liability (Continued) Long-term Expected Rate of Return (Continued) In determining the long-term expected rate of return, CAPERS 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. Asset ClassM Assumed Asset Allocation Real Return 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% Strategic Financing -5.00% -0.59% 100.00% 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, 2025 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: Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) _ (a) - (b) Balance at June 30, 2023 (Valuation Date) $ 284,983,072 $ 242,796,240 $ 42,186,832 Changes Recognized for the Measurement Period: Service Cost 7,040,088 - 7,040,088 Interest on the total pension liability 19,947,640 19,947,640 Changes of benefit terms - - Changes of assumptions - - Difference between expected and actual experience 5,777,653 5,777,653 Net plan to plan resource movement - - - Contributions from the employer 9,663,855 (9,663,855) Contributions from employees 3,303,243 (3,303,243) Net investment income 23,381,814 (23,381,814) Benefit payments, including refunds of employee contributions (10,369,071) (10,369,071) - Administrative Expense (197,564) 197,564 Other - - - Net Changes during July 1, 2023 to June 30, 2024 22,396,310 25,782,277 (3,385,967) Balance at June 30, 2024 (Measurement Date) $ 307,379,382 $ 268,578,517 $ 38,800,865 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 $ 85,240,546 $ 38,800,865 $ 1,017,573 Pension Plan Fiduciary Net Position Detailed information about the plan's fiduciary net position is available in the separately issued CAPERS financial report. 88 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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, 2025, the City recognized pension expense in the amounts of $12,354,835 for the miscellaneous plan. As of measurement date of June 30, 2024, 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 of Resources 7,761,451 $ 3,624, 609 6,787,117 3,725,765 21,898,942 $ Deferred inflows of Resources (845,361) (845,361) The amounts above are net of outflows and inflows recognized in the 2023-2024 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 2023-24 measurement period is 4.4 years, which was obtained by dividing the total service years of 5,887 (the sum of remaining service lifetimes of the active employees) by 1,338 (the total number of participants: active, inactive, and retired), respectively. The $7,761,451 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, 2026. 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 2026 $ 4,139,512 2027 9,246,508 2028 690,888 2029 (784,778) Total $ 13,292,130 89 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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 CAPERS 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. Eligibility 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 $1,260 per month. 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, 2025 measurement date, the following numbers of participants were covered by the benefit terms: Active plan members 471 Inactive plan members currently receiving benefits 153 Inactive plan members entitled to but not receiving benefits 50 Total 674 Contrihn.tions 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 2025 was negative $607,000, and no cash contribution was made. In addition, the City received a credit in the amount of $359,000 relating to implied subsidy benefit payment which has been included in the contributions to the OPEB Plan Trust. 90 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) A. General Information about the OPEB Plan (Continued) Contributions (Continued) The total cash benefits paid directly by the OPEB Plan Trust to the recipients was in the amount of $1,562,591. Additional $359,000 implied subsidy benefits were reported, which resulted in reporting total benefit payments to plan participants in the amount of $1,921,591. B. Net OPEB Liability The OPEB liability was measured as of June 30, 2025, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024. Signi icant Actuarial Assumptions UsedforTotal OPEB Liability The total OPEB liability, measured as of June 30, 2025, was determined using the following actuarial assumptions: Actuarial Valuation Date June 30, 2024 Contribution Policy Pre -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 6.00% at June 30, 2025 and 2024 Return Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust Inflation 2.50% annually Mortality, Retirement, Disability, Termination CAPERS 2000-2019 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP-2021 Salary Increases Aggregate - 2.75% annually Merit - CAPERS 2000-2019 Experience Study Medical Trend Non -Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 5.65% for 2026, 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 Medical trend for EE+1 cap Chyme in assumptions There was no change in assumptions in 2025 measurement period. 91 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) B. Net OPEB Liability (Continued) 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 o Return Asset Class Global Equity Fixed Income Cash Assumed Long -Term Rate of Inflation Expected Long -Term Net Rate of Return, Rounded C. Changes in Net OPEB Liability Target Allocation PARS - Balanced Expected Real Rate of Return 60.00% 4.56% 35.00% 0.78% 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, 2024 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 Assumption changes Plan experience Investment experience Net Changes during July 1, 2024 to June 30, 2025 Balance at June 30, 2025 (Measurement Date) Increase (Decrease) Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/ (Asset) (a) (b) (c) = (a) - (b) $ 43,426,387 $ 51,056,471 $ (7,630,084) 915,576 915,576 2,602,870 - 2,602,870 - 5,356,309 (5,356,309) 359,000 (359,000) (96,322) 96,322 (1,921,591) (1,921,591) - 3,787,166 3,787,166 5,384,021 3,697,396 1,686,625 $ 48,810,408 $ 54,753,867 $ (5,943,459) 92 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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 4%(5.00%) Rate (6.00%) +1 %(7.00%) $ 428,641 $ (5,943,459) $ (11,246,750) 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% $ (12,142,612) $ (5,943,459) $ 1,632,137 OPEB Expense and De erred Quy7ows of Resources and Deferred Inflows of Resources Related to OPEB For the measurement period ended June 30, 2025, the City recognized OPEB credit in the amount of $(2,389,956). At June 30, 2025, 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 $ 3,840,918 $ (7,794,825) Difference between expected and actual experience 3,384,276 (6,484,452) Net difference between projected and actual earning on OPEB plan investments - (2,142,437) Total $ 7,225,194 $ (16,421,714) 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 2026 $ (1,235,843) 2027 (3,300,206) 2028 (2,467,684) 2029 (2,797,934) 2030 (369,400) Thereafter 974,547 Total $ (9,196,520) 93 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) D. 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 percent. The asset allocation ranges for this objective are 0 percent to 20 percent cash source, 30 percent to 50 percent fixed income, and 50 percent to 70 percent equity. Fees incurred by the Plan for the investment management services are included in fair value of the investment, as they are paid through revenue sharing, rather than a direct payment. The parameters for fixed income and equity securities based on asset allocation are as follows: Authorized Investment Type Fixed Income Longterm fixed income Intermediate -term fixed income Short-term fixed income High -yield portion of the plan Equity Domestic large cap equity Domestic mid -capitalization equity Domestic small -capitalization equity International equity Real estate Maximum Percentage of Minimum Percentage of Total Plan Assets Total Plan Assets 20% 0% 50% 15% 15% 0% 8% 0% 50% 20% 15% 0% 20% 0% 20% 0% 10% 0% Cash and investments related to the Plan consist of the following: Assets Fair Value Money market funds $ 1,376,091 U.S. Treasury 4,172,270 U.S. government enterprise securities 4,677,007 Corporate notes 6,102, 773 Foreign notes 376,405 Mutual funds - equity 32,932,380 Mutual funds - fixed income 5,001,070 Total Assets 54,637,996 Accrued Income 115,871 Total $ 54,753,867 E. Concentrations of Credit Risk Investments in any one issuer that represent 5 percent or more of the Plan's total cash and investments are as follows: Issuer Investment Type Columbia Contrarian Core Fund Mutual Funds - Equity Schwab US Large Cap ETF Mutual Funds - Equity Federal Home Loan Mortgage Corporation Collateralized Mortgage Obligation Amount Investments 5,069,119 9% 15,670,904 29% 3,039,456 6% 94 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 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 $23,500 per participant per year. Employee contributions to certain plans are voluntary. During the year ended June 30, 2025, there were 1,971 participants in the plans. The employer and employee contributions were in the amounts of $535,021 and $2,798,217, 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, 2025, the City accrued a liability of $40,624,783 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. Balance July 1, 2024 Balance (As Restated - See Note 19B) Additions Deletions June 30, 2025 Bridge and Thoroughfare Credits: Bouquet District $ 14,548,893 $ - $ - $ 14,548,893 Eastside District 7,621,706 4,837,069 (904,260) 11,554,515 Via Princessa District 380,692 - (4,419) 376,273 Valencia District 13,260,407 884,695 - 14,145,102 Total Bridge and Thoroughfare Credits $ 35,811,698 $ 5,721,764 $ (908,679) $ 40,624,783 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 Governmental Business -Type Activities Activities $1,274,647,287 $ 81,023,060 1,064,159 (92,865,698) Net investment in capital assets $1,182,845,748 $ 81,023,060 95 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 18 — Classification of Fund Balances At June 30, 2025, fund balances are classified in the governmental funds as follows: Major Governmental funds Landscape Measure R Nonmajor Total General Bridge and Impact Maintenance Highway Governmental Governmental Fund Thoroughfare Fees District 91 TDA Improvement Funds Funds Nonspendable: Prepaid items $ 444,142 $ $ $ 1,515,931 $ $ 435,362 $ 2,395,435 Deposits 60,000 - - 60,000 Notes to RDA Successor Agency 6,032,371 7,868,635 13,901,006 Advances to other funds 7,143,850 - - 7,143,850 Total nonspendable 13,680,363 1,515,931 8,303,997 23,500,291 Restricted: Landscape maintenance - 26,774,290 8,897,731 35,672,021 Lighting District - 19,249,424 19,249,424 Capital improvements 15,955,068 2,434,530 - 5,812,515 24,202,113 Transportation - - 947,282 59,464,590 60,411,872 Open space preservation - - 8,464,843 8,464,843 Public safety 1,698,457 848,271 2,546,728 Public Library 4,609,795 10,467,173 15,076,968 Air quality improvement - 642,376 642,376 Stormwater 5,614,404 5,614,404 Public education and government 1,118,243 1,118,243 Tourism marketing 1,362,664 1,362,664 Low and moderate income housing 5,659,165 5,659,165 Clean safe water - 10,740,982 10,740,982 Bond proceeds for: Debt services 726 - 726 Pensions 2,713,274 - - 2,713,274 Other - 107,902 - 11,688,054 11,795,956 Total restricted 2,714,000 15,955,068 8,850,684 26,774,290 947,282 150,030,435 205,271,759 Assigned: Operational 301,235 301,235 Capitalprojects 36,671,384 - - - - 1,700,014 38,371,398 Public facilities 188,303,618 - 188,303,618 Total assigned 225,276,237 1,700,014 226,976,251 Unassigned 63,195,094 - - - - (1,138,824) (852,013) 61,204,257 Total Fund Balance $304,865,694 $ 15,955,068 $ 8,850,684 $ 28,290,221 $ 947,282 $ (1,138,824) $159,182,433 $516,952,558 96 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 19 — Restatement of Beginning Fund Balances and Net Position A. Changes to or within the Financial Reporting Entity The TDA Special Revenue Fund and Measure R Highway Improvement Special Revenue Fund were previously reported as a nonmajor governmental fund, but due to the increase in the activities, the funds met the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2025. June 30, 2024 Change to or As Previously with the Financial June 30, 2024 Reported Reporting Entity As Reclassified Governmental Inds Major Funds: General Fund $ 281,927,634 Bridge and Thoroughfare Special Revenue Fund 14,589,203 Impact Fees Special Revenue Fund 6,315,322 Landscape Maintenance District #1 Special Revenue Fund 26,933,272 TDA Special Revenue Fund - Measure R Highway Improvement Special Revenue Fund - Nonmajor governmental funds 138,699,655 Total Governmental Inds $ 468,465,086 B. Change in Accounting Principle and Correction of Error The beginning net positions were restated as follows: Governmental Activities Beginningnet position, as previously reported $ 1,557,285,939 Change in account ing p rincip le: GASB 101 - Compensated Absences (3,159,442) Correction of error (a): Developer credit 14,166,245 CEC Loan (2,700,000) Total correction of error 11,466,245 Beginning net position, as restated $ 1,565,592,742 $ - $ 281,927,634 - 14,589,203 - 6,315,322 - 26,933,272 (653,965) (653,965) (1,067,700) (1,067,700) 1,721,665 140,421,320 $ - $ 468,465,086 Business -type Activities $ 103,463,088 (89,166) Internal Service Fund $ 13,413,239 (37,875) $ 103,373,922 $ 13,375,364 a) The beginning Governmental Activities net position was increased by $14,166,245 to correct the developer credit balance. Additionally, the beginning net position was decreased by $2,700,000 to correct the proceeds received from the California Energy Commission, which had been previously recorded as revenue rather than as a loan obligation. Note 20 — 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. 97 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 20 — Santa Clarita Watershed Recreation and Conservancy Authority (Continued) 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, 2025, 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 21— Commitments and Contingencies A. Project Commitments The City has active projects as of June 30, 2025. At year-end, the City's commitments with contractors for these projects are as follows: Projects Commitments Arts $ 116,000 Beautification 3,750,517 Circulation 1,686,028 Facilities & Buildings 12,773,493 Maintenance 24,230,236 Parks & Recreation 40,550,477 Resource & Conservation 1,051,338 Street & Bridges 19,616,685 Trails & Transit 37,163 $ 103,811,937 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, 2025, as follows: Amount General Fund $ 36,972,620 Other governmental Funds 56,313,768 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. 98 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 Note 21— Commitments and Contingencies (Continued) C. Contingencies (Continued) RFI-Bermite Lawsuit A lawsuit (the "RFI-Bermite Lawsuit") seeking damages of at least $750 million was brought against the City in July of 2021, by Remediation Financial, Inc. ("RFI") and Bermite Recovery, LLC ("Bermite," and together with RFI, "Plaintiffs"). The lawsuit alleges that the City interfered with the Plaintiffs' ability to develop a 996-acre area of undeveloped property located in the City, commonly referred to as the "Whittaker-Bermite Site." The Plaintiffs allege that the City unlawfully interfered with their development efforts and prevented the Plaintiffs from obtaining the financing and/or development partners they needed to develop the Whittaker-Bermite Site, resulting in lost profits to the Plaintiffs. On August 8, 2022, the City filed a motion to strike Plaintiffs' state law claims based on California's Anti-SLAPP Statute, and a separate motion to dismiss the complaint on various grounds, including state -law immunities, lack of standing, and other grounds. The City 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 is almost complete. Initially, SDRMA and its re -insurer, Evanston Insurance, were providing a defense under a reservation of rights. However, with the elimination of all but one of the original causes of action, the insurers have indicated the suit is no longer within their coverage. The City filed a motion for summary judgment in hopes of disposing the remaining cause of action which was denied. 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, damages, and potential attorneys' fees, 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. Note 22 — Other Required Disclosure A. Deficit Net Positions and Fund Balances Funds with deficit fund balances and net position at June 30, 2025 are as follows: Deficit Special Revenue Funds: Measure R Highway Improvement $ (1,138,824) Community Development Block Grant (7,178) Measure H Homeless Initiatives (127) Measure M ATP (229,388) Measure A Safe Parks (233,369) Misc Grants (350,832) The deficit fund balances will be eliminated through reimbursement from grantor agencies. 99 This page intentionally left blank 100 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 101 This page intentionally left blank. 102 REVENUES: Taxes Licenses and permits Intergovernmental Charges for services Investment income 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, 2025 Original Final Budget Budget $ 116,297,242 10,028,782 211,241 12,157,607 7,087,878 1,131,000 245,294 147,159,044 $ 114,217,242 11,715,823 2,337,307 12,570,437 7,087,878 1,206,000 288,056 149,422,743 56,334,296 55,826,538 49,822,538 52,303,570 - 490,724 34,488,589 68,443,337 140,645,423 177,064,169 Actual $ 117,711,053 11,548,817 2,050,502 13,640,699 17,034,503 1,181,503 984,183 164,151,260 52,270,741 45,682,566 2,131,488 23,044,101 123,128,896 Variance with Final Budget $ 3,493,811 (167,006) (286,805) 1,070,262 9,946,625 (24,497) 696,127 14,728,517 3,555,797 6,621,004 (1,640,764) 45,399,236 53,935,273 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 6,513,621 (27,641,426) 41,022,364 68,663,790 OTHER FINANCING SOURCES (USES): Issuance of debt* Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 2,875,214 (25,332,198) (22,456,984) 3,490,427 (24,709,916) (21,219,489) $ (15,943,363) $ (48,860,915) 1,991,857 3,366,966 (23,443,127) (18,084,304) 1,991,857 (123,461) 1,266,789 3,135,185 22,938,060 $ 71,798,975 281,927,634 $ 304,865,694 *There was no budget adopted for GASB 87, Leases and GASB 96, Subscription -based Information Technology Arrangements activities for 2025. 103 City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund For the Year Ended June 30, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings $ 808,490 $ 808,490 $ 1,845,803 $ 1,037,313 Developer fees - 2,751,676 2,968,222 216,546 Other revenues 368,724 368,724 598,932 230,208 Total revenues 1,177,214 3,928,890 5,412,957 1,484,067 EXPENDITURES: Operating: Personnel 124,508 124,508 116,520 7,988 Operations and maintenance 617,261 1,024,634 824,783 199,851 Capital improvement projects 460,000 17,277,202 3,017,603 14,259,599 Total expenditures 1,201,769 18,426,344 3,958,906 14,467,438 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 (24,555) (14,497,454) 1,454,051 - (88,186) (88,186) - (88,186) (88,186) $ (24,555) $ (14,585,640) 15,951,505 1,365,865 $ 15,951,505 14,589,203 $ 15,955,068 104 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Impact Fees Special Revenue Fund For the Year Ended June 30, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings $ 201,861 $ 201,861 $ 769,282 $ 567,421 Developer fees 300,000 4,497,272 5,652,880 1,155,608 Other revenue - 205,000 183,044 (21,956) Total revenues 501,861 4,904,133 6,605,206 1,701,073 EXPENDITURES: Operating: Operations and maintenance Capital outlay Capital improvement projects Total expenditures 2,482,951 2,457,550 25,401 205,000 182,245 22,755 1,186,676 981,575 205,101 3,874,627 3,621,370 253,257 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 501,861 1,029,506 2,983,836 1,954,330 OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE - (448,474) (448,474) - (448,474) (448,474) $ 501,861 $ 581,032 2,535,362 $ 1,954,330 FUND BALANCE: Beginning of year 6,315,322 End of year $ 8,850,684 105 City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - Landscape Maintenance District #1 Special Revenue Fund For the Year Ended June 30, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes $ 308,344 $ 308,344 $ 313,546 $ 5,202 Special assessments 16,166,204 16,166,204 16,420,736 254,532 Investment earnings 778,019 778,019 1,524,710 746,691 Total revenues 17,252,567 17,252,567 18,258,992 1,006,425 EXPENDITURES: Operating: Personnel 1,669,074 1,709,601 1,639,123 70,478 Operations and maintenance 14,072,319 14,415,615 13,713,144 702,471 Capital improvement projects 504,680 986,014 415,005 571,009 Total expenditures 16,246,073 17,111,230 15,767,272 1,343,958 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,006,494 141,337 2,491,720 2,350,383 OTHER FINANCING (USES): Transfers in Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 10,000 27,032 27,032 (614,157) (1,161,803) (1,161,803) (604,157) (1,134,771) (1,134,771) $ 402,337 $ (993,434) 1,356,949 $ 2,350,383 26,933,272 $ 28,290,221 106 City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - Transportation Development Act 8 (TDA) Special Revenue Fund For the Year Ended June 30, 2025 REVENUES: Intergovernmental Investment earnings Total revenues EXPENDITURES: Operating: Operations and maintenance Capital improvement projects Total expenditures Original Final Budget Budget Actual $ 14,542,034 $ 18,488,757 $ 12,364,293 - - 420,034 Variance with Final Budget $ (6,124,464) 420,034 14,542,034 18,488,757 12,784,327 (5,704,430) 13,536 13,536 13,536 - 7,914,493 17,754,125 10,557,962 7,196,163 7,928,029 17,767,661 10,571,498 7,196,163 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 6,614,005 721,096 2,212,829 1,491,733 OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year (6,614,005) (829,435) (611,582) 217,853 (6,614,005) (829,435) (611,582) 217,853 $ - $ (108,339) 1,601,247 $ 1,709,586 (653,965) $ 947,282 107 City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - Measure R Highway Improvement Special Revenue Fund For the Year Ended June 30, 2025 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 $ 70,000 $ 20,551,896 $ 17,534,948 $ (3,016,948) 70,000 20,551,896 17,534,948 (3,016,948) 70,000 19,484,220 17,606,072 1,878,148 70,000 19,484,220 17,606,072 1,878,148 $ - $ 1,067,676 (71,124) $ (1,138,800) (1,067,700) $ (1,138,824) 108 City of Santa Clarita Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2025 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, Capital Projects Funds, Debt Service Funds, 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 are no adopted budgets for Santa Clarita Public Television Authority Special Revenue Fund and Tesoro Open Space Special Revenue 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, 2025 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 Changes of Benefit Terms 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 payro113 2023-24 2022-23 2021-22 2020-21 2019-20 S 7,040,088 S 6,560,886 S 6,170,934 S 5,527,979 S 5,350,001 19,947,640 18,498,487 17,206,725 16,234,316 15,203,985 - - 10,873,827 - - - 197,813 - - - 5,777,653 4,108,538 (2,536,083) 1,168,851 2,498,828 (10,369,071) (9,779,721) (8,535,910) (7,668,205) (7,134,971) 22,396,310 19,586,003 23,179,493 15,262,941 15,917,843 284,983,072 265,397,069 242,217,576 226,954,635 211,036,792 S 307,379,382 S 284,983,072 S 265,397,069 $ 242,217,576 S 226,954,635 S 9,663,855 S 3,303,243 23,381,814 (10,369,071) (197,564) 9,124,266 S 8,462,964 S 2,879,083 2,704,400 14,130,498 (18,522,060) (9,779,721) (166,637) (8,535,910) (151,157) 11,219,959 S 15,978,300 2,551,579 2,530,805 44,522,336 8,957,955 (7,668,205) (7,134,971) (192,013) (242,657) 25,782,277 16,187,489 (16,041,763) 50,433,656 20,089,432 242,796,240 226,608,751 242,650,514 192,216,858 172,127,426 S 268,578,517 S 242,796,240 S 226,608,751 S 242,650,514 S 192,216,858 S 38,800,865 S 42,186,832 S 38,788,318 $ (432,938) S 34,737,777 87.38% 85.20% 85.38% 100.18% 84.69% S 42,589,765 S 39,192,868 S 36,363,784 $ 35,733,541 S 34,033,087 Plan net pension liability as a percentage of covered payroll 91.10% 107.64% 106.67% -1.21% 102.07% During Fiscal Year 2017-18, CaIPERS 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, CalPERS 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). 2 Includes any beginning of year adjustment. 3 Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022-2024; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2015-17. Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes of Assumptions: There were no assumption changes in 2024 and 2023. Effective with the June 30, 2021 valuation date (June 30, 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. In addition, demographic assumptions and the price inflation 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 June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 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, 2025 Last Ten Fiscal Years' California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan (Continued) Measurement period 2018-19 2017-18 2016-17 2015-16 2014-15 Total pension liability Service cost $ 5,104,511 $ 4,920,377 $ 4,921,221 $ 4,409,399 $ 4,418,053 Interest 14,120,352 13,037,446 12,166,752 11,315,207 10,443,680 Changes of assumptions - (1,615,911) 11,654,992 - (3,009,808) Changes of Benefit Terms - - - - Differences between expected and actual experience 3,019,582 1,709,604 (1,505,660) (305,665) 416,626 Benefit payments, including refunds of employee contributions (6,246,516) (5,601,353) (4,406,046) (3,347,335) (2,971,092) Net change in total pension liability 15,997,929 12,450,163 22,831,259 12,071,606 9,297,459 Total pension liability - beginning 195,038,863 182,588,700 159,757,441 147,685,835 138,388,376 Total pension liability - ending (a) $ 211,036,792 $ 195,038,863 $ 182,588,700 $ 159,757,441 $ 147,685,835 Pension fiduciary net position Contributions - employer $ 12,500,090 $ 9,664,637 $ 4,484,866 $ 3,959,503 $ 3,740,145 Contributions - employee 2,478,266 2,203,916 2,224,721 2,252,522 2,164,107 Net investment income 10,255,487 11,713,900 13,510,656 622,282 2,506,239 Benefit payments, including refunds of employee contributions (6,246,516) (5,601,353) (4,406,046) (3,347,335) (2,971,092) Net plan to plan resources movement (355) 9,685 Administrative expense (109,362) (211,742) (177,534) (71,202) (131,529) Other miscellaneous income/expense' 355 (402,101) - - Net change in plan fiduciary net position 18,878,320 17,366,902 15,636,663 3,415,770 5,317,555 Plan fiduciary net position - beginning2 153,249,106 135,882,204 120,245,541 116,829,771 111,512,216 Plan fiduciary net position - ending (b) $ 172,127,426 $ 153,249,106 $ 135,882,204 $ 120,245,541 $ 116,829,771 Plan net pension liability (asset) - ending (a) - (b) $ 38,909,366 $ 41,789,757 $ 46,706,496 $ 39,511,900 $ 30,856,064 Plan fiduciary net position as a 81.56% 78.57% 74.42% 75.27% 79.11% percentage of the total pension liability Covered payro113 $ 31,563,882 $ 29,326,360 $ 28,956,876 $ 28,584,202 $ 28,017,332 Plan net pension liability as a percentage of covered payroll 123.27% 142.50% 161.30% 138.23% 110.13% 111 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2025 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 2025 2024 2023 2022 2021 5,761,451 7,661,147 $ 7,123,275 $ 6,510,552 $ 6,190,238 (7,761,451) (9,661,147) (9,123,275) (8,462,978) (11,219,252) $ (2,000,000) $ (2,000,000) $ (2,000,000) $ (1,952,426) $ (5,029,014) $ 47,631,005 $ 40,290,268 $ 39,192,868 $ 36,363,784 $ 35,733,541 16.29% 23.98% 23.28% 23.27% 31.40% Notes to Schedule: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2022 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, 2022 Funding Valuation Report. Inflation 2.30% Salary increases Varies by entry age and service Payroll Growth 2.80% Investment rate of return 6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation. Retirement age The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 112 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2025 Last Ten Fiscal Years' California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan (Continued) 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 2020 2019 2018 2017 2016 $ 6,323,890 $ 5,637,826 $ 4,662,191 $ 4,484,140 $ 3,958,892 (15,976,871) (12,499,992) (9,662,191) (4,484,140) (3,958,892) $ (9,652,981) $ (6,862,166) $ (5,000,000) $ - $ - $ 34,033,087 $ 31,563,882 $ 29,326,360 $ 28,956,876 $ 28,584,202 46.95% 39.60% 32.96% 15.49% 13.85% 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, 2025 Other Postemployment Benefits ("OPEB") Plan Measurement period 2024-25 2023-24 2022-23 2021-22 2020-21 Total OPEB liability Service cost $ 915,576 $ 975,655 $ 1,076,110 $ 1,100,210 $ 2,154,981 Interest 2,602,870 2,505,023 2,646,199 2,509,052 2,517,070 Changes of benefit terms - - - - - Differences between expected and actual experience 3,787,166 - (3,466,684) - (5,463,407) Changes of assumptions - - 812,693 - (17,074,375) Benefit payments, including refunds of employee contributions (1,921,591) (1,658,038) (1,455,278) (1,326,369) (1,265,682) Net change in total pension liability 5,384,021 1,822,640 (386,960) 2,282,893 (19,131,413) Total OPEB liability - beginning 43,426,387 41,603,747 41,990,707 39,707,814 58,839,227 Total OPEB liability - ending (a) $ 48,810,408 $ 43,426,387 $ 41,603,747 $ 41,990,707 $ 39,707,814 OPEB fiduciary net position Contributions - employer $ 359,000 $ 278,000 $ 253,000 $ 301,000 $ 638,000 Net investment income 5,356,309 5,817,416 3,955,861 (7,090,104) 10,837,685 Benefit payments (1,921,591) (1,658,038) (1,455,278) (1,326,369) (1,265,682) Administrative expense (96,322) (110,704) (86,061) (105,845) (95,987) Other expenses - - - - - Net change in plan fiduciary net position 3,697,396 4,326,674 2,667,522 (8,221,318) 10,114,016 Plan fiduciary net position - beginning 51,056,471 46,729,797 44,062,275 52,283,593 42,169,577 Plan fiduciary net position - ending (b) $ 54,753,867 $ 51,056,471 $ 46,729,797 $ 44,062,275 $ 52,283,593 Plan net OPEB liability (asset) - ending (a) - (b) $ (5,943,459) $ (7,630,084) $ (5,126,050) $ (2,071,568) $ (12,575,779) Plan fiduciary net position as a percentage 112.18% 117.57% 112.32% 104.93% 131.67% of the total OPEB liability Covered -employee payroll $ 49,547,287 $ 46,573,286 $ 45,582,496 $ 41,385,678 $ 35,631,538 Plan net OPEB liability as a percentage of covered -employee payroll -12.00% -16.38% -11.25% -5.01% -35.29% Note: Historical information presented is only for periods after GASB 75 implementation. 114 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2025 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Plan (Continued) Measurement period Total OPEB liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total OPEB liability - beginning Total OPEB liability - ending (a) OPEB fiduciary net position 2019-20 $ 1,610,969 $ 2,505,286 2018-19 2017-18 1,701,975 $ 1,711,000 2,823,979 2,633,073 - (7,334,973) - 8,477,248 2,078,284 (1,071,000) (1,202,903) (1,093,711) (1,054,000) 11,390,600 (1,824,446) 2,219,073 47,448,627 49,273,073 47,054,000 $ 58,839,227 $ 47,448,627 $ 49,273,073 Contributions - employer $ 636,000 $ 923,250 $ 1,227,000 Net investment income 1,475,065 2,618,633 2,963,587 Benefit payments (1,202,903) (1,093,711) (1,054,041) Administrative expense (77,123) (73,935) (146,319) Other expenses - - - Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan net OPEB liability (asset) - ending (a) - (b) Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Plan net OPEB liability as a percentage of covered -employee payroll 831,039 2,374,237 2,990,227 41,338,538 38,964,301 35,974,074 $ 42,169,577 $ 41,338,538 $ 38,964,301 $ 16,669,650 $ 6,110,089 $ 10,308,772 71.67% 87.12% 79.08% $ 38,295,087 $ 33,895,751 $ 30,634,000 43.53% 18.03% 33.65% 115 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Plan Fiscal year ended June 30 2025 2024 2023 2022 2021 Actuarially determined contribution (ADC) $ 496,000 $ 273,000 $ 232,000 $ 482,000 $ 517,000 Contributions in relation to the actuarially determined contribution 359,000 278,000 253,000 301,000 638,000 Contribution deficiency (excess) $ 137,000 $ (5,000) $ (21,000) $ 181,000 $ (121,000) Covered -employee payroll $ 49,547,287 $ 46,573,286 $ 45,582,496 $ 41,385,678 $ 35,631,538 Contributions as a percentage of covered -employee payroll 0.72% 0.60% 0.56% 0.73% 1.79% Methods and assumptions used to determine contribution rates: Contribution valuation date June 30, 2024 Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method Level percentage of pay Amortization period Approximately 7.5-years remaining for 2024/25 Asset valuation method Market value Discount Rate 6.00% General Inflation Rate 2.50% Medical Trend Non -Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non -Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Mortality CAPERS 2000-2019 experience study Mortality Improvement 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, 2025 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Plan (Continued) Fiscal year ended June 30 Actuarially determined contribution (ADC) Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered -employee payroll Contributions as a percentage of covered -employee payroll 2020 2019 2018 $ 1,112,000 $ 1,127,000 $ 1,755,000 636,000 923,250 1,227,000 $ 476,000 $ 203,750 $ 528,000 $ 38,295,087 $ 33,895,751 $ 30,634,000 1.66% 2.72% 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, 2025 Fiscal year 2025 2024 2023 2022 2021 2020 2019 2018 2017 Annual money -weighted rate of return - net of investment expense 10.67% 12.85% 9.30%-13.55% 26.10% 3.78% 6.94% 8.26% 12.81% * Fiscal year 2017 was the first year of GASB 74 implementation, therefore, only nine years are shown. 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 (S13821). 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. SB1 Road Repair and Activity — To account for monies received and expended from the State SB 1 Road and Repair Rehabilitation to fund various maintenance, rehabilitations, and safety needs on streets and roads. Traffic Safety — To account for monies received from vehicle code fines. This fund is used to finance law enforcement expenditures. CDBG (Community Development Block Grant) — To account for Federal entitlements under the Housing and Community Development Act of 1974, as amended. The City Council annually allocates CDBG funds to various programs. AQMD (Air Quality Management District) — To account for revenues and expenditures for Air Quality Management. Stormwater — To account for monies received from assessments restricted for the use of the stormwater and run-off programs. 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. 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 combating homelessness and for funding homeless services and short-term housing. 121 NONMAJOR GOVERNMENTAL FUNDS Nonmaior Special Revenue Funds (Continued): 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 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 capita basis. The measure provides local funding from an annual parcel tax of 1.5 cents per square foot of building floor area for parks and open space. Measure W Safe Clean Water — To account for the special tax of 2.5 cents per square feet of impermeable area for parcels located in Los Angeles County Flood Control District that Los Angeles County voters approved November 2018 to pay for projects, infrastructure, and programs to capture, treat, and recycle rainwater. Tourism Marketing District — To account for receipts and disbursements associated with promoting local businesses and tourism in the City of Santa Clarita through the Tourism Marketing District. The Tourism Marketing District was formed to provide financing for public programs to attract tourist visits to areas where tourism is economically important and desired. The Tourism Marketing District was established and is levied pursuant to the Parking and Business Improvement Area Law of 1989, Part 6 of Division 18 of the California Streets and Highways Code (the 1989 Law) and the provisions of the California Constitution Article XIIID (Proposition 218). OSPD (Open Space Preservation District) — To account for monies received from special assessments for the costs of acquiring open space lands, parks, and parkland in accordance with the City's programs. Miscellaneous Grants — To account for receipts and disbursements of non-federal miscellaneous grants, which are restricted for planning, design, improvements, and maintenance of streets, roads, and bridges, facility construction and improvements, transit operations, and other transit -related expenditures. Park Dedication — This fund accounts for monies received from developers restricted to finance the acquisition and develop new parkland space. These monies are restricted under the Quimby Act by ordinance and require the dedication of land or impose a requirement of the payment of fee in lieu. Housing Successor Agency — To account for the transactions of the Housing Successor Agency for the continuation of the low- and moderate -income programs of the former redevelopment agency. Tourism Marketing Bureau — To account for monies received from local and regional tourism -related organizations restricted for tourism and business development within the City's boundaries. Areawide — To account for receipts and disbursements for the City's Areawide Beautification Zone operations which is supported through special benefit assessments levied on individual parcels authorized by the Landscape and Lighting Act of 1972. Funds are restricted for specific use on costs associated with the maintenance of landscape, hardscape and ornamental improvements, park facilities, tree pruning, as well as utility costs such as water and electricity. As provided for by the Landscape and Lighting Act, 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. 122 NONMAJOR GOVERNMENTAL FUNDS Nonmaior Special Revenue Funds (Continued): 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. Developer Fees Special Revenue Fund — To account for monies received from developers restricted to fund specific projects and infrastructure maintenance throughout the City. Public Library Special Revenue Fund — To account for property tax receipts and disbursements associated with the operation of the City of Santa Clarita Public Library. American Rescue Plan Act Special Revenue Fund — 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. Tesoro Open Space Maintenance Special Revenue Fund - To account for special tax revenue collected for the management and maintenance of approximately 770 acres of open space dedicated to the City as part of the Tesoro Highlands development. 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. 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. 123 This page intentionally left blank. 124 City of Santa Clarita Combining Balance Sheet Nonmajor Governmental Funds June 30, 2025 Special Revenue Funds Special Bikeway Gas Tax Proposition A Assessment ASSETS Cash and investments $ 186,051 $ - $ 18,561,218 $ 5,628,205 Accounts receivable, net - 5,102 - 58 Interest receivable 1,121 - 111,815 33,905 Taxes receivables - - - 33,252 Loans receivable - - - - Prepaid items - - - - Due from other governments - 543,259 - - Notes to RDA Successor Agency - - - - Restricted assets: Cash and investments with fiscal agent - - - - Total assets $ 187,172 $ 548,361 $ 18,673,033 $ 5,695,420 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 162,275 $ 411,823 $ - $ 26,414 Due to the Successor Agency - - - - Due to other funds - 136,538 - - Unearned revenue - - - - Total liabilities 162,275 548,361 - 26,414 Deferred Inflows of Resources Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances (Deficits): Nonspendable - - - - Restricted 24,897 - 18,673,033 5,669,006 Assigned - - - - Unassigned (deficits) - - - - Total fund balances (deficits) 24,897 - 18,673,033 5,669,006 Total liabilities, deferred inflows of resources and fund balances $ 187,172 $ 548,361 $ 18,673,033 $ 5,695,420 (Continued) 125 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Street SB 1 Road Lighting Measure M Repair and District Local Return Activity Traffic Safety $ 19,479,850 $ 13,342,832 $ 6,418,228 $ - 232,150 - - - 117,349 80,379 38,664 - 122,037 - - 36,782 2,757 - - - - - 1,108,105 - $ 19,954,143 $ 13,423,211 $ 7,564,997 $ 36,782 $ 701,962 $ 53,700 $ - - - 36,782 2,757 - - - 19,249,424 13,369,511 7,564,997 - $ 19,954,143 $ 13,423,211 $ 7,564,997 $ 36,782 (Continued) 126 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds BJA Law CDBG AQMD Stormwater Enforcement $ - $ 887,103 $ 5,814,830 $ 2 - - 3,472 - - 5,344 35,029 - - - 69,390 - - - 17,849 - 665,898 80,207 - - $ 665,898 $ 972,654 $ 5,940,570 $ 2 $ 611,674 $ 330,278 $ 308,317 $ - 60,086 - - - 671,760 330,278 308,317 - 1,316 - - - 1,316 - - - - - 17,849 - - 642,376 5,614,404 2 (7,178) - - - (7,178) 642,376 5,632,253 2 $ 665,898 $ 972,654 $ 5,940,570 $ 2 (Continued) 127 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 Special Revenue Funds Public Supplemental Education and Law Grant HOME Government Proposition C ASSETS Cash and investments $ 932,611 $ 1,049,406 $ 1,029,095 $ 14,488,484 Accounts receivable, net - - - - Interest receivable 5,618 6,323 6,198 87,280 Taxes receivables - - 82,950 - Loans receivable - 1,848,786 - - Prepaid items - - - - Due from other governments - - - 506,288 Notes to RDA Successor Agency - - - - Restricted assets: Cash and investments with fiscal agent - - - - Total assets $ 938,229 $ 2,904,515 $ 1,118,243 $ 15,082,052 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 89,960 $ - $ - $ 81,600 Due to the Successor Agency - - - - Due to other funds - - - 506,288 Unearned revenue - - - - Total liabilities 89,960 - - 587,888 Deferred Inflows of Resources Unavailable revenue - - - 506,288 Total deferred inflows of resources - - - 506,288 Fund Balances (Deficits): Nonspendable - - - - Restricted 848,269 2,904,515 1,118,243 13,987,876 Assigned - - - - Unassigned (deficits) - - - - Total fund balances (deficits) 848,269 2,904,515 1,118,243 13,987,876 Total liabilities, deferred inflows of resources and fund balances $ 938,229 $ 2,904,515 $ 1,118,243 $ 15,082,052 (Continued) 128 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Measure H Homeless Measure M Initiatives Federal Grants Measure R ATP $ 7,417,487 $ - - - 44,684 - 6,306 606,491 - 232,275 $ 6,306 $ 606,491 $ 7,462,171 $ 232,275 $ 378 $ 78,564 $ 1,741,163 $ 36,664 5,928 8,818 - 192,724 127 103,148 - 232,275 127 103,148 - 232,275 - 415,961 5,721,008 - (127) - - (229,388) (127) 415,961 5,721,008 (229,388) $ 6,306 $ 606,491 $ 7,462,171 $ 232,275 (Continued) 129 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Measure W Tourism Measure A Safe Clean Marketing Safe Parks Water District OSPD $ - $ 10,858,906 $ 1,257,592 $ 8,117,857 - 65,415 7,576 48,903 - - 94,640 43,022 - - 48,264 - 243,666 - - - $ - $ 183,339 $ 65,566 $ 136,527 233,369 - - - 243,666 - - - 243,666 - - - - - 48,264 - - 10,740,982 1,294,242 8,073,255 (233,369) - - - (233,369) 10,740,982 1,342,506 8,073,255 $ 243,666 $ 10,924,321 $ 1,408,072 $ 8,209,782 (Continued) 130 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Housing Tourism Miscellaneous Park Successor Marketing Grants Dedication Agency Bureau $ 1,150,709 $ 6,671,584 $ 1,369,043 $ 68,012 - 40,190 8,945 410 31,119 - - - 653,745 - - - $ 1,835,573 $ 6,711,774 $ 1,377,988 $ 68,422 $ 32,017 $ 116,574 $ - $ - - - 34,479 - 594,630 - - - 626,647 116,574 34,479 - 1,559,758 - - 1,559,758 - - 31,119 - - - 6,595,200 1,343,509 (381,951) - - (350,832) 6,595,200 1,343,509 $ 1,835,573 $ 6,711,774 $ 1,377,988 $ 68,422 68,422 (Continued) 131 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Santa Clarita Cooper St VC Public Parking Wastewater Television Areawide CFD 2020-1 Standby District Authority $ 10,233,119 $ 288,272 $ 3,053,867 $ 181 14,929 - - - 41,808 - 18,397 - 211,860 - 215,621 - 335,373 - - - $ 10,837,089 $ 288,272 $ 3,287,885 $ 181 $ 1,603,985 $ 1,413 $ 171,468 $ - 335,373 - - - 8,897,731 286,859 3,116,417 181 $ 10,837,089 $ 288,272 $ 3,287,885 $ 181 (Continued) 132 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Tesoro Developer Public American Open Space Fees Library Rescue Plan Maintenance $ 2,262,766 $ 10,565,384 $ 49,892 $ 43,954 13,631 63,647 - - - 239,470 - - 7,868,635 - - - $ 10,145,032 $ 10,868,501 $ 49,892 $ 43,954 $ 14,880 $ 401,328 $ 23,868 $ - - 26,024 14,880 401,328 49,892 7,868,635 - 2,213,222 10,467,173 48,295 - 10,130,152 10,467,173 $ 10,145,032 $ 10,868,501 $ 49,892 $ 43,954 43,954 (Continued) 133 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2025 Capital Projects Funds Debt Service Fund General Public Total Nonmajor Capital Civic Financing Governmental Projects Arts Projects Authority Funds ASSETS Cash and investments $ 2,498,752 $ 296,327 $ 1,081,798 $ 155,103,417 Accounts receivable, net - - - 255,711 Interest receivable - 460 - 883,091 Taxes receivables - - - 1,149,024 Loans receivable - - - 1,848,786 Prepaid items - - - 435,362 Due from other governments - - - 4,646,240 Notes to RDA Successor Agency - - - 7,868,635 Restricted assets: Cash and investments with fiscal agent - - 3,968 3,968 Total assets $ 2,498,752 $ 296,787 $ 1,085,766 $ 172,194,234 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 1,143,820 $ - $ - $ 8,529,557 Due to the Successor Agency - - - 34,479 Due to other funds - - - 1,180,533 Unearned revenue - - - 620,654 Total liabilities 1,143,820 - - 10,365,223 Deferred Inflows of Resources Unavailable revenue - - 2,646,578 Total deferred inflows of resources - - - 2,646,578 Fund Balances (Deficits): Nonspendable - - - 8,303,997 Restricted - - 1,085,766 150,030,435 Assigned 1,354,932 296,787 - 1,700,014 Unassigned (deficits) - - - (852,013) Total fund balances (deficits) 1,354,932 296,787 11085,766 159,182,433 Total liabilities, deferred inflows of resources and fund balances $ 2,498,752 $ 296,787 $ 1,085,766 $ 172,194,234 (Concluded) 134 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2025 Special Revenue Funds Special Bikeway Gas Tax Proposition A Assessment REVENUES: Taxes $ - $ - $ - $ - Special assessments - - - 837,912 Intergovernmental 212,616 6,362,711 6,052,596 - Charges for services - - - - Investment income 8,358 521 1,052,084 294,381 Fines and forfeitures - 5,681 - - Developer fees - - - - Other revenue - - - 77 Total revenues 220,974 6,368,913 7,104,680 1,132,370 EXPENDITURES: Current: General government - - - - Public safety - - - - Public works - 6,641,214 - - Community development - - - - Neighborhood services - - - 305,230 Capital outlay 267,527 372,281 773,007 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 267,527 7,013,495 773,007 305,230 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (46,553) (644,582) 6,331,673 827,140 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Transfers in - 711,582 - - Transfers out - (67,000) (5,000,000) - Total other financing sources (uses) - 644,582 (5,000,000) - NET CHANGES IN FUND BALANCES (46,553) - 1,331,673 827,140 FUND BALANCES (DEFICITS): Beginning of year, as previously reported 71,450 - 17,341,360 4,841,866 Change within financial reporting entity Nonmajor to major funds - - - - Beginning of year, as restated (Note 19) 71,450 - 17,341,360 4,841,866 End of year $ 24,897 $ - $ 18,673,033 $ 5,669,006 (Continued) 135 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2025 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year Special Revenue Funds Street SB 1 Road Lighting Measure M Repair and District Local Return Activity TDA 6,875,266 - - - 4,264,951 6,288,172 1,015,538 714,999 320,297 542,024 - - 3,146,533 - - 1,863,104 - - 501,715 3,846,748 5,645,635 5,511,352 3,846,748 5,645,635 2,921,476 1,133,202 962,834 (960,637) - - (960,637) - - 1,960,839 1,133,202 962,834 17,291,342 12,236,309 6,602,163 (653,965) - - - 653,965 17,291,342 12,236,309 6,602,163 - (Continued) 136 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2025 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year Special Revenue Funds Traffic Safety CDBG AQMD Stormwater - - - 4,457,483 - 2,923,273 307,144 - - - - 20,581 - - 42,569 304,965 501,540 - - - - - - 351,352 501,540 2,923,273 349,713 5,134,381 - 1,165,676 - - - - 17,419 4,335,919 - 1,758,913 328,479 - - 2,924,589 345,898 4,335,919 501,540 (1,316) 3,815 798,462 - - - 3,690 (501,540) - - (514,727) (501,540) - - (511,037) - (1,316) 3,815 287,425 - (5,862) 638,561 5,344,828 $ - $ (7,178) $ 642,376 $ 5,632,253 (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, 2025 Special Revenue Funds Public BJA Law Supplemental Education and Enforcement Law Grant HOME Government REVENUES: Taxes $ - $ - $ - $ 435,975 Special assessments - - - - Intergovernmental 20,317 695,336 - - Charges for services - - - - Investment income - 48,310 56,732 51,720 Fines and forfeitures - - - - Developer fees - - - - Other revenue - - 44,067 - Total revenues 20,317 743,646 100,799 487,695 EXPENDITURES: Current: General government - - - 262,178 Public safety 20,317 497,425 - - Public works - - - - Community development - - - - Neighborhood services - - - - Capital outlay - - 9,000 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 20,317 497,425 9,000 262,178 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - 246,221 91,799 225,517 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - NET CHANGES IN FUND BALANCES - 246,221 91,799 225,517 FUND BALANCES (DEFICITS): Beginning of year, as previously reported 2 602,048 2,812,716 892,726 Change within financial reporting entity Nonmajor to major funds - - - - Beginning of year, as restated (Note 19) 2 602,048 2,812,716 892,726 End of year $ 2 $ 848,269 $ 2,904,515 $ 1,118,243 (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, 2025 Special Revenue Funds Measure H Homeless Proposition C Initiatives Federal Grants Measure R REVENUES: Taxes $ - $ - $ - $ - Special assessments - - - - Intergovernmental 5,020,143 330,384 1,351,982 3,764,410 Charges for services - - - - Investment income 712,911 - - 422,948 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 Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year 5,733,054 330,384 1,351,982 4,187,358 - 330,510 - - 742,808 - 1,266,686 6,645,508 742,808 330,510 1,266,686 6,645,508 4,990,246 (126) 85,296 (2,458,150) - (33,977) - - - (33,977) - - 4,990,246 (34,103) 85,296 (2,458,150) 8,997,630 33,976 330,665 8,179,158 8,997,630 33,976 330,665 8,179,158 (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, 2025 Special Revenue Funds Measure R Measure W Highway Measure M Measure A Safe Clean Improvement ATP Safe Parks Water REVENUES: Taxes $ - $ - $ - $ 3,298,931 Special assessments - - - Intergovernmental 687,294 - - Charges for services - - - Investment income - - 520,383 Fines and forfeitures - - - Developer fees - - Other revenue - - - Total revenues - 687,294 - 3,819,314 EXPENDITURES: Current: General government - - - Public safety - - - Public works - - - Community development - - - Neighborhood services - - 184,628 Capital outlay 817,422 - 1,030,308 Debt service: Principal retirement - - - Interest and fiscal charges - - - Total expenditures - 817,422 - 1,214,936 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - (130,128) - 2,604,378 OTHER FINANCING SOURCES (USES): Issuance of debt - - - Transfers in - - - Transfers out - (232,741) - Total other financing sources (uses) - - (232,741) - NET CHANGES IN FUND BALANCES (130,128) (232,741) 2,604,378 FUND BALANCES (DEFICITS): Beginning of year, as previously reported (1,067,700) (99,260) (628) 8,136,604 Change within financial reporting entity Nonmajor to major funds 1,067,700 - - - Beginning of year, as restated (Note 19) - (99,260) (628) 8,136,604 End of year $ - $ (229,388) $ (233,369) $ 10,740,982 (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, 2025 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year Special Revenue Funds Tourism Marketing Miscellaneous Park - 3,395,652 1,059,746 - 63,558 433,558 1,123,304 3,829,268 600,469 - - 318,666 - 1,880,081 600,469 2,198,747 875,871 - 4,397 - - 1,125,697 60,015 - - 2,145,709 698,600 284,774 875,871 3,271,406 763,012 284,774 247,433 557,862 (162,543) 1,913,973 - (967,639) - (967,639) 247,433 (409,777) 1,095,073 8,483,032 (162,543) 1,913,973 (188,289) 4,681,227 $ 1,342,506 $ 8,073,255 $ (350,832) $ 6,595,200 (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, 2025 Special Revenue Funds Housing Tourism Cooper St Successor Marketing Parking Agency Bureau Areawide CFD 2020-1 REVENUES: Taxes $ - $ - $ - $ - Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year - - 9,084,075 19,371 - 9,566 - - 80,310 3,688 281,567 - - - 4,577 - 80,310 13254 9,370,219 19,371 - - 6,553,602 - 8,757 - - - 15,898,421 178,576 - - 892,403 - 8,757 178,576 - 23,344,426 80,310 4,497 (13,974,207) (159,205) 277,203 - 15,571,227 - (115,762) - - - 161,441 - 15,571,227 - 241,751 4,497 1,597,020 (159,205) 1,101,758 63,925 7,636,084 446,064 63,925 446,064 1,101,758 7,636,084 (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, 2025 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year Special Revenue Funds Santa Clarita VC Public Wastewater Television Developer Public Standby District Authority Fees Library $ - $ - $ - $ 10,503,147 1,705,154 - - - - 414,416 - - - - - 295,328 154,218 1,932 124,946 503,542 248 - 189,597 204,348 1,859,620 416,348 314,543 11,506,365 2,008 342,200 - - 1,115,761 - - 8,554,647 - 94,071 59,085 163,651 - 73,605 - 214,282 - 409 - 6,886 1,117,769 510,285 59,085 8,939,466 741,851 (93,937) 94,071 255,458 2,566,899 93,448 741,851 134 255,458 2,660,347 2,374,566 47 9,874,694 7,806,826 2,374,566 47 9,874,694 7,806,826 $ 3,116,417 $ 181 $ 10,130,152 $ 10,467,173 (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, 2025 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year Special Revenue Fund Capital Projects Funds Tesoro General American Open Space Capital Civic Rescue Plan Maintenance Projects Arts Projects - 42,822 - - 133,192 - - - - 1,132 - 7,910 - - 49,499 - 133,192 43,954 49,499 7,910 133,192 - 4,050,808 160,501 133,192 - 4,050,808 160,501 - 43,954 (4,001,309) (152,591) - - 3,873,231 219,936 - - 31873,231 219,936 - 43,954 (128,078) 67,345 - - 1,483,010 229,442 - - 1,483,010 229,442 $ - $ 43,954 $ 1,354,932 $ 296,787 (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, 2025 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Nonmajor to major funds Beginning of year, as restated (Note 19) End of year T _La O __ _] _ _ —-- ] Public Total Nonmajor Financing Governmental Authority Funds $ - $ 14,238,053 - 26,417,735 - 39,429,406 - 1,385,221 6,942 7,548,685 - 1,053,822 - 1,880,081 - 839,246 6,942 92,792,249 - 10,306,521 - 517,742 - 8,504,318 - 2,385,211 - 31,776,313 - 32,688,831 2,895,000 3,182,887 3,075,983 3,083,278 c non nol nn nnc ini (5,964,041) 347,148 - 187,519 5,963,600 26,620,469 - (8,394,023) 5,963,600 18,413,965 (441) 18,761,113 1,086,207 138,699,655 - 1,721,665 1 noC nn^ 1 An An1 inn df 1,UZ5J,/oo df 1J7, 125z"+.)J (Concluded) 145 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 250,000 $ 231,924 $ 212,616 $ (19,308) Investment earnings - - 8,358 8,358 Total revenues 250,000 231,924 220,974 (10,950) EXPENDITURES: Capital improvement projects 250,000 511,297 267,527 243,770 Total expenditures 250,000 511,297 267,527 243,770 NET CHANGE IN FUND BALANCE $ - $ (279,373) (46,553) $ 232,820 FUND BALANCE: Beginning of year 71,450 End of year $ 24,897 146 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, 2025 REVENUES: Intergovernmental Investment earnings Fines and forfeitures Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER Original Final Budget Budget $ 6,276,032 6,276,032 $ 6,449,590 6,449,590 Actual Variance with Final Budget $ 6,362,711 $ (86,879) 521 521 5,681 5,681 6,368,913 (80,677) 2,995,926 3,004,709 2,864,242 140,467 3,832,858 3,832,858 3,776,973 55,885 290,000 430,000 372,049 57,951 - 3,095 231 2,864 7,118,784 7,270,662 7,013,495 257,167 (UNDER) EXPENDITURES (842,752) (821,072) (644,582) 176,490 OTHER FINANCING SOURCES (USES): Transfers in 6,714,005 929,435 711,582 (217,853) Transfers out (67,000) (67,000) (67,000) - Total other financing sources (uses) 6,647,005 862,435 644,582 (217,853) NET CHANGE IN FUND BALANCE $ 5,804,253 $ 41,363 - $ (41,363) FUND BALANCE: Beginning of year End of year 147 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 6,487,662 $ 5,964,140 $ 6,052,596 $ 88,456 Investment earnings 582,759 582,759 1,052,084 469,325 Total revenues 7,070,421 6,546,899 7,104,680 557,781 EXPENDITURES: Capital improvement projects - 773,009 773,007 2 Total expenditures - 773,009 773,007 2 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 7,070,421 5,773,890 6,331,673 557,783 OTHER FINANCING (USES): Transfers out - (5,000,000) (5,000,000) - Total other financing (uses) - (5,000,000) (5,000,000) - NET CHANGE IN FUND BALANCE $ 7,070,421 $ 773,890 1,331,673 $ 557,783 FUND BALANCE: Beginning of year 17,341,360 End of year $ 18,673,033 148 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, 2025 REVENUES: Special assessments Investment earnings Other revenue Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 740,826 $ 740,826 $ 154,753 154,753 895,579 895,579 66,519 66,443 383,691 398,105 - 40,000 450,210 504,548 $ 445,369 $ 391,031 Variance with Actual Final Budget 837,912 $ 97,086 294,381 139,628 77 77 1,132,370 236,791 64,462 1,981 240,768 157,337 - 40,000 305,230 199,318 827,140 $ 436,109 4,841,866 $ 5,669,006 149 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, 2025 REVENUES: Special assessments Investment earnings Fines and forfeitures Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER Original Final Budget Budget $ 6,640,004 $ 6,640,004 570,638 570,638 475,000 475,000 5,000 5,000 7,690,642 7,690,642 397,187 371,678 4,624,034 4,640,834 500,000 508,400 5,521,221 5,520,912 Actual Variance with Final Budget $ 6,875,266 $ 235,262 1,015,538 444,900 542,024 67,024 - (5,000) 8,432,828 742,186 374,502 (2,824) 4,635,135 5,699 501,715 6,685 5,511,352 9,560 (UNDER) EXPENDITURES 2,169,421 2,169,730 2,921,476 751,746 OTHER FINANCING (USES): Transfers out (961,922) (961,922) (960,637) 1,285 Total other financing (uses) (961,922) (961,922) (960,637) 1,285 NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 1,207,499 $ 1,207,808 1,960,839 $ 753,031 17,291,342 $ 19,252,181 150 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 4,574,143 $ 4,205,730 $ 4,264,951 $ 59,221 Investment earnings - - 714,999 714,999 Total revenues 4,574,143 4,205,730 4,979,950 774,220 EXPENDITURES: Capital improvement projects 11,512,157 16,398,981 3,846,748 12,552,233 Total expenditures 11,512,157 16,398,981 3,846,748 12,552,233 NET CHANGE IN FUND BALANCE $ (6,938,014) $ (12,193,251) 1,133,202 $ 13,326,453 FUND BALANCE: Beginning of year 12,236,309 End of year $ 13,369,511 151 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB1 Road Repair and Activity Special Revenue Fund For the Year Ended June 30, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 5,903,107 $ 5,973,965 $ 6,288,172 $ 314,207 Investment earnings - - 320,297 320,297 Total revenues 5,903,107 5,973,965 6,608,469 634,504 EXPENDITURES: Capital improvement projects 5,981,012 11,848,430 5,645,635 6,202,795 Total expenditures 5,981,012 11,848,430 5,645,635 6,202,795 NET CHANGE IN FUND BALANCE $ (77,905) $ (5,874,465) 962,834 $ 6,837,299 FUND BALANCE: Beginning of year 6,602,163 End of year $ 7,564,997 152 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Fines and forfeitures $ 550,000 $ 550,000 $ 501,540 $ (48,460) Total revenues 550,000 550,000 501,540 (48,460) OTHER FINANCING (USES): Transfers out (550,000) (550,000) (501,540) 48,460 Total other financing (uses) (550,000) (550,000) (501,540) 48,460 NET CHANGE IN FUND BALANCE $ - $ - - $ - FUND BALANCE: Beginning of year - End of year $ - 153 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, 2025 REVENUES: Intergovernmental Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget Actual Variance with Final Budget $ 2,687,396 $ 3,699,095 $ 2,923,273 $ (775,822) 2,687,396 3,699,095 2,923,273 (775,822) 198,189 192,370 182,574 9,796 1,037,051 1,082,051 983,102 98,949 1,452,156 2,161,973 1,758,913 403,060 2,687,396 3,436,394 2,924,589 511,805 $ - $ 262,701 (1,316) $ (264,017) (5,862) $ (7,178) 154 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 302,100 $ 302,100 $ 307,144 $ 5,044 Investment earnings 12,724 12,724 42,569 29,845 Total revenues 314,824 314,824 349,713 34,889 EXPENDITURES: Operating: Operations and maintenance 22,105 21,359 17,419 3,940 Capital outlay 80,000 328,479 328,479 - Total expenditures 102,105 349,838 345,898 3,940 NET CHANGE IN FUND BALANCE $ 212,719 $ (35,014) 3,815 $ 38,829 FUND BALANCE: Beginning of year 638,561 End of year $ 642,376 155 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, 2025 REVENUES: Special assessments Charges for services Investment earnings Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget Actual Variance with Final Budget $ 4,485,481 $ 4,485,481 $ 4,457,483 $ (27,998) 20,290 20,290 20,581 291 131,380 131,380 304,965 173,585 225,570 225,570 351,352 125,782 4,862,721 4,862,721 5,134,381 271,660 1,634,388 1,651,340 1,610,071 41,269 3,012,923 3,032,572 2,746,384 286,188 - 86,000 - 86,000 141,507 178,280 (20,536) 198,816 4,788,818 4,948,192 4,335,919 612,273 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 73,903 (85,471) 798,462 883,933 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 3,690 3,690 3,690 (514,727) (514,727) (514,727) (511,037) (511,037) (511,037) $ (437,134) $ (596,508) 287,425 $ 883,933 5,344,828 $ 5,632,253 156 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, 2025 REVENUES: Intergovernmental Total revenues EXPENDITURES: Operating: Operations and maintenance Total expenditures 10aY1[iJ1EW101BeWeI111011: A1/Vray FUND BALANCE: Beginning of year End of year Original Final Budget Budget Actual Variance with Final Budget - $ 20,737 $ 20,317 $ (420) - 20,737 20,317 (420) - 20,737 20,317 - 20,737 20,317 2 $ 2 420 420 157 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 500,000 $ 500,000 $ 695,336 $ 195,336 Investment earnings - - 48,310 48,310 Total revenues 500,000 500,000 743,646 243,646 EXPENDITURES: Operating: Operations and maintenance 574,382 574,382 497,425 76,957 Total expenditures 574,382 574,382 497,425 76,957 NET CHANGE IN FUND BALANCE $ (74,382) $ (74,382) 246,221 $ 320,603 FUND BALANCE: Beginning of year 602,048 End of year $ 848,269 158 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Investment earnings Other revenue Total revenues EXPENDITURES: Operating: Operations and maintenance Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 530,314 $ 29,880 560,194 29,880 56,732 26,852 - 44,067 44,067 29,880 100,799 70,919 9,000 9,000 9,000 - 530,314 530,314 - 530,314 539,314 539,314 9,000 530,314 $ 20,880 $ (509,434) 91,799 $ 601,233 2,812,716 $ 2,904,515 159 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes $ 450,000 $ 450,000 $ 435,975 $ (14,025) Investment earnings 35,121 35,121 51,720 16,599 Total revenues 485,121 485,121 487,695 2,574 EXPENDITURES: Operating: Operations and maintenance 243,116 303,116 262,178 40,938 Total expenditures 243,116 303,116 262,178 40,938 NET CHANGE IN FUND BALANCE $ 242,005 $ 182,005 225,517 $ 43,512 FUND BALANCE: Beginning of year 892,726 End of year $ 1,118,243 160 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, 2025 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 $ 6,992,373 $ 6,144,241 $ 5,020,143 $ (1,124,098) 310,257 310,257 712,911 402,654 7,302,630 6,454,498 5,733,054 (721,444) 2,140,858 3,337,654 742,808 2,594,846 2,140,858 3,337,654 742,808 2,594,846 $ 5,161,772 $ 3,116,844 4,990,246 $ 1,873,402 8,997,630 $ 13,987,876 161 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 323,310 $ 335,217 $ 330,384 $ (4,833) Total revenues 323,310 335,217 330,384 (4,833) EXPENDITURES: Operating: Personnel - 25,979 21,272 4,707 Operations and maintenance - 309,238 309,238 - Total expenditures - 335,217 330,510 4,707 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 323,310 - (126) (126) OTHER FINANCING (USES): Transfers out - (33,977) (33,977) - Total other financing (uses) - (33,977) (33,977) - NET CHANGE IN FUND BALANCE $ 323,310 $ (33,977) (34,103) $ (126) FUND BALANCE: Beginning of year 33,976 End of year $ (127) 162 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, 2025 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 $ 2,048,104 $ 4,788,946 $ 1,351,982 $ (3,436,964) 2,048,104 4,788,946 1,351,982 (3,436,964) 2,035,590 4,600,502 1,266,686 3,333,816 2,035,590 4,600,502 1,266,686 3,333,816 $ 12,514 $ 188,444 85,296 $ (103,148) 330,665 $ 415,961 163 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 4,036,009 $ 3,709,370 $ 3,764,410 $ 55,040 Investment earnings - - 422,948 422,948 Total revenues 4,036,009 3,709,370 4,187,358 477,988 EXPENDITURES: Capital improvement projects 4,225,749 11,838,120 6,645,508 5,192,612 Total expenditures 4,225,749 11,838,120 6,645,508 5,192,612 NET CHANGE IN FUND BALANCE $ (189,740) $ (8,128,750) (2,458,150) $ 5,670,600 FUND BALANCE: Beginning of year 8,179,158 End of year $ 5,721,008 164 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, 2025 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 $ 47,500 $ 6,254,687 $ 687,294 $ (5,567,393) 47,500 6,254,687 687,294 (5,567,393) 47,500 6,154,061 817,422 5,336,639 47,500 6,154,061 817,422 5,336,639 $ - $ 100,626 (130,128) $ (230,754) (99,260) $ (229,388) 165 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 213,958 $ 1,651,153 $ - $ (1,651,153) Total revenues 213,958 1,651,153 - (1,651,153) EXPENDITURES: Capital improvement projects - 1,437,195 - 1,437,195 Total expenditures - 1,437,195 - 1,437,195 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 213,958 213,958 - (213,958) (213,958) (232,741) (232,741) - (213,958) (232,741) (232,741) - $ - $ (18,783) (232,741) $ (213,958) (628) $ (233,369) 166 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes $ 3,235,579 $ 3,235,579 $ 3,298,931 $ 63,352 Investment earnings 240,585 240,585 520,383 279,798 Total revenues 3,476,164 3,476,164 3,819,314 343,150 EXPENDITURES: Operating: Personnel 144,935 151,100 143,107 7,993 Operations and maintenance 41,521 91,521 41,521 50,000 Capital outlay - - - - Capital improvement projects 519,000 2,958,972 1,030,308 1,928,664 Total expenditures 705,456 3,201,593 1,214,936 1,986,657 NET CHANGE IN FUND BALANCE $ 2,770,708 $ 274,571 2,604,378 $ 2,329,807 FUND BALANCE: Beginning of year 8,136,604 End of year $ 10,740,982 167 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Charges for services $ 950,000 $ 950,000 $ 1,059,746 $ 109,746 Investment earnings 33,348 33,348 63,558 30,210 Total revenues 983,348 983,348 1,123,304 139,956 EXPENDITURES: Operating: Personnel 55,774 56,329 54,267 2,062 Operations and maintenance 833,433 853,433 821,604 31,829 Total expenditures 889,207 909,762 875,871 33,891 NET CHANGE IN FUND BALANCE $ 94,141 $ 73,586 247,433 $ 173,847 FUND BALANCE: Beginning of year 1,095,073 End of year $ 1,342,506 168 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, 2025 REVENUES: Special assessments Charges for services Investment earnings Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget Actual Variance with Final Budget $ 3,356,853 $ 3,356,853 $ 3,395,652 $ 38,799 85,530 85,530 - (85,530) 287,155 287,155 433,558 146,403 - - 58 58 3,729,538 3,729,538 3,829,268 99,730 541,906 532,276 489,947 42,329 535,567 693,083 635,750 57,333 - 3,234,463 2,083,353 1,151,110 - 68,445 62,356 6,089 1,077,473 4,528,267 3,271,406 1,256,861 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2,652,065 (798,729) 557,862 1,356,591 OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year (967,639) (967,639) (967,639) (967,639) (967,639) (967,639) $ 1,684,426 $ (1,766,368) (409,777) $ 1,356,591 8,483,032 $ 8,073,255 169 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, 2025 REVENUES: Intergovernmental Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget Actual Variance with Final Budget $ 801,850 $ 3,621,949 $ 600,469 $ (3,021,480) 801,850 3,621,949 600,469 (3,021,480) 20,655 - 69,384 353,769 - 1,507,138 1,123,850 835,330 1,213,889 2,696,237 $ (412,039) $ 925,712 64,412 289,357 - 1,507,138 698,600 136,730 763,012 1,933,225 (162,543) $ (1,088,255) (188,289) $ (350,832) 170 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, 2025 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 $ 64,285 $ 64,285 $ 318,666 $ 254,381 - - 1,880,081 1,880,081 64,285 64,285 2,198,747 2,134,462 3,670,000 4,578,011 284,774 4,293,237 3,670,000 4,578,011 284,774 4,293,237 $ (3,605,715) $ (4,513,726) 1,913,973 $ 6,427,699 4,681,227 $ 6,595,200 171 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Total revenues 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 - $ 80,310 $ 80,310 - 80,310 80,310 277,203 277,203 277,203 - (115,762) (115,762) 277,203 161,441 161,441 $ 277,203 $ 161,441 241,751 1,101,758 $ 1,343,509 $ 80,310 172 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Charges for services $ 8,000 $ 8,000 $ 9,566 $ 1,566 Investment earnings - - 3,688 3,688 Total revenues 8,000 8,000 13,254 5,254 EXPENDITURES: Operating: Operations and maintenance 9,274 9,274 8,757 517 Total expenditures 9,274 9,274 8,757 517 NET CHANGE IN FUND BALANCE $ (1,274) $ (1,274) 4,497 $ 5,771 FUND BALANCE: Beginning of year 63,925 End of year $ 68,422 173 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, 2025 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 Budget Budget $ 8,679,479 135,806 8,815,285 $ 8,679,479 135,806 8,815,285 Actual Variance with Final Budget $ 9,084,075 $ 404,596 281,567 145,761 4,577 4,577 9,370,219 554,934 6,987,607 7,166,213 6,972,752 193,461 15,462,481 15,828,109 15,483,186 344,923 - 6,665 6,665 - 7,840,138 5,622,038 881,823 4,740,215 30,290,226 28,623,025 23,344,426 5,278,599 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (21,474,941) (19,807,740) (13,974,207) 5,833,533 OTHER FINANCING SOURCES: Transfers in 15,182,571 15,868,838 15,571,227 (297,611) Total other financing sources 15,182,571 15,868,838 15,571,227 (297,611) NET CHANGE IN FUND BALANCE $ (6,292,370) $ (3,938,902) 1,597,020 $ 5,535,922 FUND BALANCE: Beginning of year 7,636,084 End of year $ 9,233,104 174 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Special assessments $ 452,972 $ 452,972 $ 19,371 $ (433,601) Total revenues 452,972 452,972 19,371 (433,601) EXPENDITURES: Operating: Operations and maintenance 405,595 451,224 178,626 272,598 Total expenditures 405,595 451,224 178,626 272,598 NET CHANGE IN FUND BALANCE $ 47,377 $ 1,748 (159,255) $ (161,003) FUND BALANCE: Beginning of year 446,064 End of year $ 286,809 175 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Developer Fees Special Revenue Fund For the Year Ended June 30, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Other revenues Total revenues EXPENDITURES: Capital improvement projects Total expenditures $ 265,600 $ 265,600 $ 124,946 $ (140,654) - - 189,597 189,597 265,600 265,600 314,543 48,943 1,069,686 1,206,726 59,085 1,147,641 1,069,686 1,206,726 59,085 1,147,641 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (804,086) (941,126) 255,458 1,196,584 OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year (58,000) (75,000) (58,000) (75,000) $ (862,086) $ (1,016,126) 255,458 9,874,694 $ 10,130,152 75,000 75,000 $ 1,271,584 176 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Special assessments $ 1,035,513 $ 1,035,513 $ 1,705,154 $ 669,641 Investment earnings 92,540 92,540 154,218 61,678 Other revenue - - 248 248 Total revenues EXPENDITURES: Operating: Operations and maintenance Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 1,128,053 1,128,053 1,859,620 731,567 818,080 1,061,617 1,117,769 (56,152) 818,080 1,061,617 1,117,769 (56,152) $ 309,973 $ 66,436 741,851 $ 675,415 2,374,566 $ 3,116,417 177 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Library Special Revenue Fund For the Year Ended June 30, 2025 REVENUES: Taxes Charges for services Investment earnings Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay* Capital improvement projects Total expenditures Original Final Budget Budget Actual Variance with Final Budget $ 10,350,000 $ 10,350,000 $ 10,503,147 $ 153,147 290,100 290,100 295,328 5,228 246,029 246,029 503,542 257,513 89,000 115,000 204,348 89,348 10,975,129 11,001,129 11,506,365 505,236 5,919,789 5,832,528 5,152,258 680,270 3,328,971 3,804,593 3,623,557 181,036 - - 93,448 (93,448) 146,000 126,543 70,203 56,340 9,394,760 9,763,664 8,939,466 824,198 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,580,369 1,237,465 2,566,899 (1,329,434) OTHER FINANCING SOURCES: Issuance of debt* - - 93,448 93,448 Total other financing sources - - 93,448 93,448 NET CHANGE IN FUND BALANCE $ 1,580,369 $ 1,237,465 2,660,347 $ (1,422,882) FUND BALANCE: Beginning of year End of year 7,806,826 $ 10,467,173 *There was no budget adopted for GASB 87, Leases and GASB 96, Subscription -based Information Technology Arrangements activities for 2025. 178 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual American Rescue Plan Special Revenue Fund For the Year Ended June 30, 2025 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 - $ 159,217 $ 133,192 $ (26,025) - 159,217 133,192 (26,025) - 159,288 133,192 26,096 - 159,288 133,192 26,096 - $ (71) - $ 71 179 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Other revenues Total revenue EXPENDITURES: 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 - $ 49,499 $ 49,499 - 49,499 49,499 5,706,300 7,278,852 4,050,808 3,228,044 5,706,300 7,278,852 4,050,808 3,228,044 (5,706,300) (7,278,852) (4,001,309) 3,277,543 5,706,300 4,832,430 3,873,231 (959,199) 5,706,300 4,832,430 3,873,231 (959,199) $ - $ (2,446,422) (128,078) $ 2,318,344 1,483,010 $ 1,354,932 180 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Total revenues EXPENDITURES: Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Transfers in Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year - $ 7,910 $ 7,910 - 7,910 7,910 173,468 431,904 160,501 271,403 173,468 431,904 160,501 271,403 (173,468) (431,904) (152,591) - 219,936 219,936 - 219,936 219,936 $ (173,468) $ (211,968) 67,345 229,442 $ 296,787 279,313 $ 279,313 181 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, 2025 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Total revenues - $ 6,942 $ 6,942 - 6,942 6,942 EXPENDITURES: Operating: Operations and maintenance 5,974,863 5,974,863 5,970,983 3,880 Total expenditures 5,974,863 5,974,863 5,970,983 3,880 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (5,974,863) (5,974,863) (5,964,041) 10,822 OTHER FINANCING SOURCES: Transfers in 5,974,863 5,974,863 5,963,600 (11,263) Total other financing sources 5,974,863 5,974,863 5,963,600 (11,263) NET CHANGE IN FUND BALANCE $ - $ - (441) $ (441) FUND BALANCE: Beginning of year End of year 1,086,207 $ 1,085,766 182 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. 183 This page intentionally left blank. 184 City of Santa Clarita Combining Statement of Net Position Internal Service Funds June 30, 2025 ASSETS Current assets: Cash and investments 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 $ 13,884,057 $ 4,602,691 $ 7,547,268 $ 26,034,016 82,302 27,727 45,466 155,495 13,966,359 4,630,418 7,592,734 26,189,511 17,828 - - 17,828 - 88,205 1,368,874 1,457,079 17,828 88,205 1,368,874 1,474,907 13,984,187 4,718,623 8,961,608 27,664,418 80,425 - - 80,425 21,675 - - 21,675 102,100 - - 102,100 77,522 48,263 16,613 - 1,/ /V,1JJ 4b,LOJ 82,665 - 10,268,679 - 142,505 - 10,493,849 - 12,263,984 48,263 241 126,026 - 16,613 L41 1,25125,OJ7 - 82,665 - 10,268,679 - 142,505 - 10,493,849 241 12,312,488 3,104 - - 3,104 49,263 - - 49,263 52,367 - - 52,367 - 88,205 1,368,874 1,457,079 1,769,936 4,582,155 7,592,493 13,944,584 $ 1,769,936 $ 4,670,360 $ 8,961,367 $ 15,401,663 185 City of Santa Clarita Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2025 Self Computer Vehicle Insurance Replacement Replacement Total OPERATING REVENUES: Charges for services $ 4,149,522 $ 956,626 $ 1,360,350 $ 6,466,498 Other revenue - - 31,007 31,007 Total operating revenues 4,149,522 956,626 1,391,357 6,497,505 OPERATING EXPENSES: Administration and personnel services 469,631 24,969 - 494,600 Services and supplies 4,588,673 332,276 6,536 4,927,485 Depreciation expense - 32,286 292,566 324,852 Total operating expenses 5,058,304 389,531 299,102 5,746,937 NET OPERATING INCOME (908,782) 567,095 1,092,255 750,568 NONOPERATING REVENUE (EXPENSES): Investment income 643,311 232,826 374,656 1,250,793 Gain on sale of capital asset - - 24,938 24,938 Total nonoperating expenses 643,311 232,826 399,594 1,275,731 CHANGE IN NET POSITION (265,471) 799,921 1,491,849 2,026,299 NET POSITION: Beginning of the year, as previously reported 2,073,282 3,870,439 7,469,518 13,413,239 Change in accounting principal (37,875) - - (37,875) Beginning of year, as restated (Note 19) 2,035,407 3,870,439 7,469,518 13,375,364 End of the year $ 1,769,936 $ 4,670,360 $ 8,961,367 $ 15,401,663 186 City of Santa Clarita Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2025 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 Proceeds from sale 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 (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Change in assets and liabilities: (Increase) decrease in accounts receivable (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 Insurance Computer Replacement Vehicle Replacement $ 4,156,472 $ 976,089 $ 1,391,357 - (422125) (6,295) (446,662) - - (2,174170) - - 1,535,640 553,964 1,385,062 Total $ 6,523,918 (428,420) (446,662) (2174170) 3,474,666 - (63,911) (180,177) (244,088) - - 40,100 40,100 - (63,911) (140,077) (203,988) 611,763 222,154 355,261 1,189,178 611,763 222,154 355,261 1,189,178 21147,403 712,207 1,600,246 4,459,856 11,736,654 3,890,484 5,947,022 21,574,160 $ 13,884,057 $ 4,602,691 $ 7,547,268 $ 26,034,016 $ (908,782) $ 567,095 $ 1,092,255 $ 750,568 - 32,286 292,566 324,852 6,950 19,463 - 26,413 5,060 - - 5,060 (12,436) - - (12,436) 31,366 - - 31,366 (6,375) - - (6,375) 48,164 (64,880) 241 (16,475) 13,322 - - 13,322 2,367,373 - - 2,367,373 (2,070) - - (2,070) (6,932) - - (6,932) 21444,422 (13,131) 292,807 2,724,098 $ 1,535,640 $ 553,964 $ 1,385,062 $ 3,474,666 187 This page intentionally left blank. 188 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. 189 City of Santa Clarita Combining Statement of Fiduciary Net Position Custodial Funds June 30, 2025 Assessment District No.92-2 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 District No.99-1 Community Facilities District No 2002-1 $ 172,557 $ 1,370,081 1,040 8,244 182 - 61,879 1,650,231 235,658 3,028,556 - 333 - 333 $ - $ 235,658 $ 3,028,223 190 City of Santa Clarita Combining Statement of Fiduciary Net Position (Continued) Custodial Funds June 30, 2025 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 Clarita Community Watershed and Facilities Recreation District Conservancy No 2016-1 Authority Total $ 480,699 $ 14,579 $ 2,037,916 2,971 - 12,255 116,571 - 116,753 1,106,818 - 2,818,928 1,707,059 14,579 4,985,852 333 333 - 666 - 666 $ 1,706,726 $ 14,579 $ 4,985,186 191 City of Santa Clarita Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the Year Ended June 30, 2025 ADDITIONS: Special assessment from property owners Net investment income (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 $ - $ 72,008 $ 1,437,167 318 11,422 62,999 318 83,430 1,500,166 11,895 9,510 2,790 - 54,806 1,362,000 8,657 11,721 11,731 20,552 76,037 1,376,521 (20,234) 7,393 123,645 20,234 228,265 2,904,578 $ - $ 235,658 $ 3,028,223 192 City of Santa Clarita Combining Statement of Changes in Fiduciary Net Position (Continued) Custodial Funds For the Year Ended June 30, 2025 ADDITIONS: Special assessment from property owners Net investment income (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 Santa Clarita Community Watershed and Facilities Recreation District Conservancy No 2016-1 Authority Total $ 889,826 $ - $ 2,399,001 21,311 (252) 95,798 911,137 (252) 2,494,799 31,702 744 56,641 822,600 - 2,239,406 - - 32,109 854,302 744 2,328,156 56,835 (996) 166,643 1,649,891 15,575 4,818,543 $ 1,706,726 $ 14,579 $ 4,985,186 193 This page intentionally left blank. 194 STATISTICAL SECTION (Unaudited) 195 This page intentionally left blank. 196 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 Page 198- 207 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 MINI G#& These tables contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 226 - 232 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 233 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 234 - 238 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 197 City of Santa Clarita Governmental Activities Net investment in capital assets Restricted for: Debt service Specific projects and programs Total restricted Unrestricted Total governmental activities net position Business -Type Activities Net investment in capital assets Unrestricted Total business -type activities net position Primary Government Net investment in capital assets Restricted Unrestricted Total primary government net position Net Position by Component (1) Last Ten Fiscal Years Ended June 30, 2025 (accrual basis of accounting) FISCAL YEAR 24-25 23-24 22-23 21-22 20-21 $ 1,182,845,748 $ 1,154,546,653 $ 1,124,934,271 $ 1,080,862,181 $ 1,032,579,113 726 1,086,933 - - - 216,970,070 182,397,736 158,032,140 152,349,197 147,556,902 216,970,796 183,484,669 158,032,140 152,349,197 147,556,902 249,662,213 219,254,617 188,013,004 161,500,702 126,571,370 $ 1,649,478,757 $ 1,557,285,939 $ 1,470,979,415 $ 1,394,712,080 $ 1,306,707,385 $ 81,023,060 $ 84,534,345 $ 96,692,691 $ 95,597,321 $ 88,023,510 24,404,983 18,928,743 11,332,040 8,917,312 6,895,650 $ 105,428,043 $ 103,463,088 $ 108,024,731 $ 104,514,633 $ 94,919,160 $ 1,263,868,808 $ 1,239,080,998 $ 1,221,626,962 $ 1,176,459,502 $ 1,120,602,623 216,970,796 183,484,669 158,032,140 152,349,197 147,556,902 274,067,196 238,183,360 199,345,044 170,418,014 133,467,020 $ 1,754,906,800 $ 1,660,749,027 $ 1,579,004,146 $ 1,499,226,713 $ 1,401,626,545 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 198 Governmental Activities Net investment in capital assets Restricted for: Debt service Specific projects and programs Total restricted Unrestricted Total governmental activities net position Business -Type Activities Net investment in capital assets Unrestricted Total business -type activities net position Primary Government Net investment in capital assets Restricted Unrestricted Total primary government net position City of Santa Clarita Net Position by Component(') (Continued) Last Ten Fiscal Years Ended June 30, 2025 (accrual basis of accounting) FISCAL YEAR 19-20 17-18 17-18 16-17 15-16 $ 984,052,712 $ 920,036,752 $ 895,056,642 $ 867,144,998 $ 810,324,041 146,874,629 119,375,331 113,286,625 87,272,723 70,773,322 146,874,629 119,375,331 113,286,625 87,272,723 70,773,322 80,879,095 122,991,202 85,155,060 105,514,664 115,356,272 $ 1,211,806,436 $ 1,162,403,285 $ 1,093,498,327 $ 1,059,932,385 $ 996,453,635 $ 80,308,956 $ 83,906,440 $ 79,199,471 $ 79,589,102 $ 76,687,260 (1,465,963) 269,116 (888,318) (1,202,362) 3,101,763 $ 78,842,993 $ 84,175,556 $ 78,311,153 $ 78,386,740 $ 79,789,023 $ 1,064,361,668 $ 1,003,943,192 $ 974,256,113 $ 946,734,100 $ 887,011,301 146,874,629 119,375,331 113,286,625 87,272,723 70,773,322 79,413,132 123,260,318 84,266,742 104,312,302 118,458,035 $ 1,290,649,429 $ 1,246,578,841 $ 1,171,809,480 $ 1,138,319,125 $ 1,076,242,658 199 City of Santa Clarita Changes in Net Position Last Ten Fiscal Years Ended June 30, 2025 (accrual basis of accounting) FISCAL YEAR 24-25 23-24 22-23 21-22 20-21 Expenses Governmental Activities General government $ 43,353,928 $ 42,903,612 $ 49,428,154 $ 14,728,358 $ 51,594,712 Public safety 36,355,365 38,352,436 33,228,916 30,936,129 35,128,997 Public works 43,318,806 21,576,455 18,720,585 30,493,258 17,239,899 Recreation and community service 23,943,496 16,966,219 20,430,503 23,989,989 15,107,049 Community development 21,359,973 20,881,513 19,948,687 12,203,347 11,435,676 Neighborhood Services 37,086,261 35,112,719 23,816,831 42,179,104 13,865,065 Unallocated infrastructure depreciation 23,068,021 22,660,450 22,077,333 21,432,943 21,543,801 Interest on long-term debt 3,785,637 5,267,945 3,912,327 2,743,559 3,742,582 Total governmental activities expenses 232,271,487 203,721,349 191,563,336 178,706,687 169,657,781 Business -Type Activities Transit 39,126,362 42,110,510 35,506,571 31,342,873 27,898,955 Total business -type activities expenses 39,126,362 42,110,510 35,506,571 31,342,873 27,898,955 Total primary government expenses $ 271,397,849 $ 245,831,859 $ 227,069,907 $ 210,049,560 $ 197,556,736 Program Revenues Governmental Activities Charges for services: General government $ 47,432,446 $ 44,473,152 $ 41,180,442 $ 916,671 $ 9,254,707 Public safety 1,919,701 1,975,034 2,053,902 1,658,867 1,303,759 Public works 12,179,749 8,453,094 7,366,425 11,352,114 3,627,549 Recreation and community service 8,708,352 16,588,500 11,412,044 21,724,121 16,419,310 Community development 15,550,066 15,488,032 15,864,222 3,073,196 1,899,854 Neighborhood Services 12,069,729 12,860,528 9,429,835 33,555,637 31,252,912 Operating grants and contributions 29,947,141 31,377,313 35,092,994 38,093,703 44,524,768 Capital grants and contributions 54,399,674 27,088,019 35,865,511 68,626,540 42,849,916 Total governmental activities program revenues 182,206,858 158,303,672 158,265,375 179,000,849 151,132,775 Business -Type Activities Charges for services: Transit 7,603,837 6,161,116 6,499,657 5,936,598 5,799,364 Operating grants and contributions 23,929,561 27,714,574 15,173,066 12,087,130 29,444,844 Capital grants and contributions 4,228,982 3,509,025 8,107,402 13,402,891 9,036,527 Total business -type activities program revenues 35,762,380 37,384,715 29,780,125 31,426,619 44,280,735 Total primary government revenues $ 217,969,238 $ 195,688,387 $ 188,045,500 $ 210,427,468 $ 195,413,510 Source: City of Santa Clarita, Administrative Services Department - Finance Division 200 City of Santa Clarita Changes in Net Position (Continued) Last Ten Fiscal Years Ended June 30, 2025 (accrual basis of accounting) FISCAL YEAR 19-20 18-19 17-18 16-17 15-16 Expenses Governmental Activities General government $ 54,710,526 $ 62,309,457 $ 53,928,438 $ 44,390,099 $ 39,155,006 Public safety 29,907,832 27,757,002 27,232,724 25,231,712 23,778,931 Public works 33,663,857 20,772,164 14,771,925 23,563,825 38,223,035 Recreation and community service 16,047,345 17,585,165 23,472,469 16,224,154 15,594,958 Community development 8,942,864 7,214,786 6,957,438 7,057,301 10,505,906 Neighborhood Services 12,862,529 12,622,824 1,082,836 1,815,637 - Unallocated infrastructure depreciation 21,043,711 20,630,522 19,259,333 18,833,113 18,342,933 Interest on long-term debt 3,549,649 2,589,767 1,638,960 1,378,888 2,194,181 Total governmental activities expenses 180,728,313 171,481,687 148,344,123 138,494,729 147,794,950 Business -Type Activities Transit 31,060,676 32,065,240 28,309,870 29,858,499 28,127,407 Total business -type activities expenses 31,060,676 32,065,240 28,309,870 29,858,499 28,127,407 Total primary government expenses $ 211,788,989 $ 203,546,927 $ 176,653,993 $ 168,353,228 $ 175,922,357 Program Revenues Governmental Activities Charges for services: General government $ 8,215,989 $ 8,547,181 $ 10,007,154 $ 6,740,507 $ 22,914,059 Public safety 1,484,005 1,937,603 1,429,900 1,231,974 1,162,551 Public works 12,201,244 14,669,328 15,792,197 11,549,806 16,407,616 Recreation and community service 3,635,790 6,344,242 8,306,076 6,191,011 8,142,336 Community development 1,552,869 1,704,920 1,901,897 1,906,079 1,843,296 Neighborhood Services 30,575,191 29,338,661 27,090,508 25,044,704 - Operating grants and contributions 22,066,816 13,574,920 9,259,079 5,977,971 7,687,397 Capital grants and contributions 41,462,296 59,565,349 31,807,581 55,220,052 23,629,474 Total governmental activities program revenues 121,194,200 135,682,204 105,594,392 113,862,104 81,786,729 Business -Type Activities Charges for services: Transit 6,785,178 7,662,186 6,987,488 7,231,136 7,546,433 Operating grants and contributions 13,405,112 15,292,991 10,226,946 8,459,236 9,153,499 Capital grants and contributions 5,701,142 10,434,282 3,102,269 9,138,643 3,504,305 Total business -type activities program revenues 25,891,432 33,389,459 20,316,703 24,829,015 20,204,237 Total primary government revenues $ 147,085,632 $ 169,071,663 $ 125,911,095 $ 138,691,119 $ 101,990,966 201 City of Santa Clarita Changes in Net Position (Continued) Last Ten Fiscal Years Ended June 30, 2025 (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 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 24-25 23-24 22-23 21-22 20-21 (50,064,629) (45,417,677) (33,297,961) 294,162 (18,525,006) (3,363,982) (4,725,795) (5,726,446) 83,746 16,381,780 (53,428,611) (50,143,472) (39,024,407) 377,908 (2,143,226) 49,313,249 48,363,857 48,507,761 49,476,922 43,197,889 49,818,171 48,143,344 45,187,496 42,113,398 52,981,738 11,192,681 10,936,950 10,688,049 10,883,225 9,493,742 1,567,684 1,340,239 1,307,533 2,569,074 2,010,033 5,545,207 5,290,241 5,296,490 4,874,977 2,275,383 399,100 308,711 213,520 349,171 173,463 18,291,469 13,600,790 3,407,265 (4,773,346) 634,957 1,955,811 3,485,235 3,333,538 4,993,518 2,311,282 (4,132,728) 254,834 (8,384,754) (8,097,818) 347,468 133,950,644 131,724,201 109,556,898 102,389,121 113,425,955 1,285,375 418,986 13,527 (185,016) 41,855 - - 35,000 36,900 - - - 803,263 1,562,025 - 4,132,728 (254,834) 8,384,754 8,097,818 (347,468) 5,418,103 164,152 9,236,544 9,511,727 (305,613) $ 139,368,747 $131,888,353 $118,793,442 $111,900,848 $113,120,342 $ 83,886,015 $ 86,306,524 $ 76,258,937 $102,683,283 $ 94,900,949 2,054,121 (4,561,643) 3,510,098 9,595,473 16,076,167 $ 85,940,136 $ 81,744,881 $ 79,769,035 $112,278,756 $110,977,116 Source: City of Santa Clarita, Administrative Services Department - Finance Division 202 City of Santa Clarita Changes in Net Position (Continued) Last Ten Fiscal Years Ended June 30, 2025 (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 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 19-20 18-19 17-18 16-17 15-16 (59,534,113) (35,799,482) (42,749,731) (24,060,399) (66,008,221) (5,169,244) 1,324,219 (7,993,167) (5,029,484) (7,923,170) (64,703,357) (34,475,263) (50,742,898) (29,089,883) (73,931,391) 36,621,145 38,546,183 37,252,523 36,147,727 37,807,385 46,420,350 43,761,925 42,284,749 39,924,749 40,072,597 8,604,265 8,369,481 8,523,791 8,208,347 8,392,789 1,418,026 1,227,947 1,320,018 1,275,363 1,383,473 2,726,113 3,352,776 3,489,281 3,639,264 3,813,437 207,931 147,752 162,103 144,665 129,053 12,311,467 12,528,843 591,177 1,052,254 4,142,959 472,227 1,206,740 2,661,916 737,513 1,080,771 2,050 (1,600) 10,935 11,711 459,709 153,690 (4,435,608) (5,924,278) (3,602,443) (6,390,264) 108,937,264 104,704,439 90,372,215 87,539,150 90,891,909 (9,629) 32,613 (1,242) (28,735) 59,086 - 71,963 20,238 53,223 - (153,690) 4,435,608 5,924,278 3,602,443 6,390,264 (163,319) 4,540,184 5,943,274 3,626,931 6,449,350 $ 108,773,945 $109,244,623 $ 96,315,489 $ 91,166,081 $ 97,341,259 $ 49,403,151 $ 68,904,957 $ 47,622,484 $ 63,478,751 $ 24,883,688 (5,332,563) 5,864,403 (2,049,893) (1,402,553) (1,473,820) $ 44,070,588 $ 74,769,360 $ 45,572,591 $ 62,076,198 $ 23,409,868 Source: City of Santa Clarita, Administrative Services Department - Finance Division 203 General Fund Nonspendable Restricted 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, 2025 (modified accrual basis of accounting) FISCAL YEAR 24-25 23-24 22-23 21-22 20-21 $ 13,680,363 $ 8,555,468 $ 14,295,430 $ 15,030,511 $ 7,474,892 2,714,000 11,773,441 23,514,275 4,655,940 9,644,574 225,276,237 193,570,167 166,255,745 146,922,006 110,906,093 63,195,094 68,028,558 63,696,700 62,141,361 59,968,580 $ 304,865,694 $ 281,927,634 $ 267,762,150 $ 228,749,818 $ 187,994,139 $ 9,819,928 $ 124,878 $ 74,967 $ 344,869 $ 491,504 202,557,759 186,588,168 155,269,550 147,460,244 123,614,422 - - 1,584 783 832 1,700,014 1,755,136 3,222,874 1,081,539 755,174 (1,990,837) (1,930,730) (5,059,903) (1,820,499) (869,803) $ 212,086,864 $ 186,537,452 $ 153,509,072 $ 147,066,936 $ 123,992,129 FUND BALANCES Fiscal Year Ended June 30, 2025 ■ All Other Governmental Funds 41% General Fund 59% Source: City of Santa Clarita, Administrative Services Department - Finance Division 204 City of Santa Clarita Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years Ended June 30, 2025 (modified accrual basis of accounting) FISCAL YEAR 19-20 18-19 17-18 16-17 15-16 General Fund Nonspendable $ 9,810,973 $ 12,050,141 $ 12,390,885 $ 15,742,945 $ 11,108,252 Restricted 23,063,669 - - - - Assigned 97,293,470 120,981,128 88,674,761 79,367,084 79,367,084 Unassigned 60,273,125 58,930,970 47,116,235 53,905,237 50,669,580 Total General Fund $ 190,441,237 $ 191,962,239 $ 148,181,881 $ 149,015,266 $ 141,144,916 All Other Governmental Funds Nonspendable $ 575,276 $ 772,627 $ 5,882 $ 976,841 $ 1,134,103 Restricted 112,631,199 108,394,699 113,286,625 86,664,536 86,240,243 Committed 9,277 13,460 15,008 14,000 14,000 Assigned 791,914 1,040,181 1,117,165 2,151,360 1,881,728 Unassigned (3,127,904) (3,266,496) (6,786,531) (5,897,790) (6,975,198) Total all other governmental funds $ 110,879,762 $ 106,954,471 $ 107,638,149 $ 83,908,947 $ 82,294,876 FUND BALANCES ALL OTHER GOVERNMENTAL FUNDS Last Ten Fiscal Years 250 200 y 50 0 107.64 00 $82.29 83.91 50 0 212.09 153. 186.54 123.99 147 110.8 106.95 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Fiscal Year Source: City of Santa Clarita, Administrative Services Department - Finance Division 205 City of Santa Clarita Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Ended June 30, 2025 FISCAL YEAR 24-25 23-24 22-23 21-22 20-21 Revenues: Taxes $ 132,262,652 $ 128,300,167 $ 124,245,820 $ 123,417,159 $ 110,132,248 Special assessments 42,838,471 39,685,405 40,833,265 36,374,012 35,634,980 Licenses and permits 11,548,817 12,756,490 13,073,140 9,724,390 11,498,980 Developer fees 10,501,183 14,697,803 3,048,765 4,674,125 11,094,312 Investment income (loss) 29,143,017 21,858,350 5,858,733 (7,617,836) 664,575 Intergovernmental 71,379,149 56,132,541 55,093,351 70,217,168 43,058,715 Fines and forfeitures 2,235,325 2,006,018 2,284,721 1,942,026 1,702,622 Service charges 15,025,920 14,714,974 13,467,246 12,681,139 6,949,375 Other revenues 2,605,405 1,875,557 2,596,935 5,639,891 13,984,800 Total Revenues 317,539,939 292,027,305 260,501,976 257,052,074 234,720,607 Expenditures: Current: General government 40,186,150 39,846,039 47,579,510 15,656,486 46,060,921 Public safety 34,914,542 36,365,740 32,234,273 30,189,992 35,570,621 Public works 18,657,939 17,300,261 16,754,090 23,570,003 90,316,078 Recreation and community service 18,593,631 17,110,899 15,941,571 18,894,253 14,917,730 Community development 20,964,114 20,740,127 19,466,417 13,146,687 11,556,377 Neighborhood services 35,010,449 33,712,098 24,377,481 43,730,242 13,885,978 Capital outlay 90,629,483 71,203,395 62,208,791 54,121,315 20,702,698 Debt service: Principal 4,227,042 3,897,429 3,680,150 2,363,121 2,315,371 Interest 3,915,765 5,397,046 3,596,800 2,857,672 3,363,625 Redemption of district credits - - 354,697 - 278,843 Total Expenditures 267,099,115 245,573,034 226,193,780 204,529,771 239,036,131 Excess of Revenues Over (Under) Expenditures 50,440,824 46,454,271 34,308,196 52,522,303 (4,315,524) Other Financing Sources (Uses) Revenue bonds issued/issuance premium - - 716,027 - 14,270,000 Issuance of long-term debt 2,179,376 484,759 18,815,000 - 225,409 Issuance of financed purchase - - - - 164,970 Transfers in 30,014,467 31,115,048 44,831,118 19,599,811 43,175,925 Transfers out (34,147,195) (30,860,214) (53,215,872) (27,697,629) (42,855,511) Issuance of district credits - - - - - Total Other Financing Sources (Uses) (1,953,352) 739,593 11,146,273 (8,097,818) 14,980,793 Net change in fund balances 48,487,472 47,193,864 45,454,469 44,424,485 10,665,269 Fund balances - Beginning of Year 468,465,086 421,271,222 375,816,753 331,392,268 301,320,999 Fund balances - End of Year $ 516,952,558 $ 468,465,086 $ 421,271,222 $ 375,816,753 $ 311,986,268 Debt service as percentage of noncapital expenditures 4.26% 5.69% 4.39% 3.51% 4.12% Source: City of Santa Clarita, Administrative Services Department - Finance Division 206 City of Santa Clarita Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years Ended June 30, 2025 (modified accrual basis of accounting) FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 Revenues: Taxes $ 95,406,064 $ 93,032,465 $ 89,340,115 $ 91,598,734 $ 85,789,556 Special assessments - - - - - Licenses and permits 9,951,586 7,688,342 7,408,357 7,283,898 5,567,280 Developer fees 6,458,182 9,888,734 4,211,890 6,272,799 10,764,554 Investment income (loss) 12,045,344 595,650 1,030,146 3,937,618 2,026,507 Intergovernmental 36,086,192 36,491,705 23,922,361 31,380,753 31,953,692 Fines and forfeitures 1,851,190 1,372,687 1,117,620 973,753 1,261,752 Service charges 42,117,270 41,793,226 36,639,646 36,828,067 37,738,754 Other revenues 1,677,809 1,744,075 690,974 1,789,724 511,117 Total Revenues 205,593,637 192,606,884 164,361,109 180,065,346 175,613,212 Expenditures: Current: General government 59,638,451 50,728,642 41,138,676 35,969,981 43,196,168 Public safety 28,342,578 27,217,567 25,214,091 23,777,171 22,188,641 Public works 51,343,366 57,213,646 43,459,620 21,327,662 36,082,625 Recreation and community service 15,450,815 21,589,318 20,446,596 37,937,050 21,007,651 Community development 7,344,064 6,988,331 6,583,484 10,673,993 5,883,441 Neighborhood services 12,823,905 1,162,647 1,667,058 - - Capital outlay 5,053,670 12,083,887 9,759,258 10,562,953 23,224,180 Debt service: Principal 2,833,260 2,138,803 2,167,429 2,852,140 1,992,479 Interest 2,520,153 1,647,842 1,237,357 4,539,815 1,850,703 Redemption of district credits - - - - 5,105,402 Total Expenditures 185,350,262 180,770,683 151,673,569 147,640,765 160,531,290 Excess of Revenues Over (Under) Expenditures 20,243,375 11,836,201 12,687,540 32,424,581 15,081,922 Other Financing Sources (Uses) Revenue bonds issued/issuance premium 25,850,000 15,848,271 - 32,997,352 - Issuance of long-term debt 1,463,083 (35,099) - (32,907,353) - Issuance of financed purchase - - - - - Transfers in 56,075,180 25,690,566 8,046,713 11,940,563 7,850,640 Transfers out (60,534,955) (30,444,125) (11,249,832) (17,960,861) (14,478,956) Issuance of district credits - - - - - Total Other Financing Sources (Uses) 22,853,308 11,059,613 (3,203,119) (5,930,299) (6,628,316) Net change in fund balances 43,096,683 22,895,814 9,484,421 26,494,282 8,453,606 Fund balances - Beginning of Year 255,820,027 232,924,213 223,439,792 196,945,510 188,491,904 Fund balances - End of Year $ 298,916,710 $ 255,820,027 $ 232,924,213 $ 223,439,792 $ 196,945,510 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 207 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 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 2023-24 2,221,125 - 2,221,125 20,130,311,294 24,342,844,316 172,628,552 (1,037,255,789) 43,608,528,373 2024-25 2,221,125 2,221,125 21,099,329,690 25,235,030,802 165,620,969 (1,200,249,566) 45,299,731,895 ASSESSED VALUATION by CATEGORIES (Total Secured and Unsecured) Fiscal Year Ended June 30, 2025 PERSONAL PROPERTY, 1.83% III IMPROVEMENTS, LAND, 44.07% 54.09% my, 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, Los Angeles County Assessor 2024/25 Combined Tax Rolls 208 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 DIRECT PROPERTY Year MENTS PROPERTY EXEMPTIONS TOTAL EXEMPTIONS VALUE (DECK) RATE (2) TAX RELIEF 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 2023-24 363,480,782 663,792,792 (2,306,700) 1,024,966,874 45,675,278,861 44,635,716,372 7.93% 0 218,633,648 2024-25 412,372,594 672,646,545 (7,696,686) 1,077,322,453 47,587,221,725 46,379,275,473 3.91% 0 216,745,182 50,000 45,000 40,000 35,000 N 30,000 O O 25,000 20,000 15,000 10,000 5,000 TOTAL ASSESSED VALUATION (Taxable Values) Last Ten Fiscal Years 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Fiscal Year 209 City of Santa Clarita Assessed Values —Taxable Property Last Ten Fiscal Years CATEGORY 24-25 23-24 FISCAL YEAR 22-23 21-22 20-21 Residential $ 37,001,943,953 $ 35,583,713,691 $ 32,800,203,874 $ 30,326,102,286 $ 29,068,019,284 Commercial 4,319,033,359 4,214,808,288 4,083,237,255 3,980,147,941 3,866,268,970 Industrial 2,599,729,111 2,485,245,390 2,360,064,334 2,031,709,683 1,955,686,889 Irrigated 4,330,309 4,162,072 4,119,683 3,678,125 3,375,991 Recreational 120,768,199 116,127,811 116,460,141 109,898,400 118,115,005 Institutional 328,910,232 360,543,388 253,388,898 276,997,197 259,899,765 Government 701,327 1,646,734 674,098 804,413 1,357,829 Miscellaneous 1,387,085 324,844 318,478 356,649 352,996 Vacant land 748,165,825 736,283,483 646,601,491 644,262,314 677,706,729 SBE Nommitary 2,221,125 2,221,125 4,429,350 4,429,350 4,284,643 Possessory Int. 174,762,407 167,879,924 157,291,212 147,670,464 143,487,714 Unsecured 1,077,322,453 1,024,966,874 929,940,213 864,657,787 884,856,619 Unknown 88 - - - - N C 2 c TOTALS: $ 46,379,275,473 $ 44,697,923,624 $ 41,356,729,027 $ 38,390,714,609 $ 36,983,412,434 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 ASSESSED VALUE - TAXABLE PROPERTY Last Ten Fiscal Years 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Fiscal Year 0 Residential 0 Commercial 0 Industrial 0 Vacant land 0 All others 210 City of Santa Clarita Assessed Values —Taxable Property (Continued) Last Ten Fiscal Years CATEGORY 19-20 18-19 FISCAL YEAR 17-18 16-17 15-16 Residential $ 27,571,753,581 $ 25,140,365,171 $ 23,734,569,687 $ 21,784,467,001 $ 20,809,579,112 Commercial 3,681,744,410 3,557,018,366 3,399,444,104 3,248,599,972 3,059,958,633 Industrial 1,878,969,596 1,861,078,681 1,790,582,919 1,706,030,432 1,799,119,742 Irrigated 3,341,172 3,707,035 2,993,570 2,960,760 2,936,120 Recreational 116,868,740 113,347,606 106,578,193 99,802,827 104,324,505 Institutional 233,475,135 230,449,000 193,500,837 213,333,035 162,056,819 Government 1,323,707 371,122 363,846 356,714 220,358 Miscellaneous 346,079 339,297 315,717 309,530 348,240 Vacant land 702,751,187 593,951,571 554,513,132 449,270,431 419,750,992 SBE Nommitary 4,284,643 4,576,418 4,576,418 3,696,751 3,696,751 Possessory Int. 129,182,761 127,296,292 120,357,965 117,718,179 115,205,002 Unsecured 850,777,410 848,468,038 819,549,000 797,363,610 853,667,044 Unknown - - 31 20 20 TOTALS: $ 35,174,818,421 $ 32,480,968,597 $ 30,727,345,419 $ 28,423,909,262 $ 27,330,863,338 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. Source: HdL Coren & Cone, Los Angeles County Assessor 2024/25 Combined Tax Rolls 211 City of Santa Clarita Assessed Values -Use Category Summary Fiscal Year 2024-25 CATEGORY PARCELS ASSESSED VALUE PERCENT EXEMPTIONS NET TAXABLE VALUE PERCENT Residential 65,038 $ 37,159,738,479 78.0% $ 157,794,526 $ 37,001,943,953 79.8% Commercial 989 4,490,128,955 9.4% $ 171,095,596 4,319,033,359 9.3% Industrial 739 2,842,770,808 6.0% $ 243,041,697 2,599,729,111 5.6% Irrigated 6 4,330,309 0.0% $ - 4,330,309 0.0% Recreational 35 121,797,263 0.3% $ 1,029,064 120,768,199 0.3% Institutional 105 945,054,417 2.0% $ 616,144,185 328,910,232 0.7% Government 6 1,679,665 0.0% $ 978,338 701,327 0.0% Miscellaneous 7 1,387,085 0.0% $ - 1,387,085 0.0% Vacant land 3,689 757,360,703 1.6% $ 9,194,878 748,165,825 1.6% SBE Nommitary 14 2,221,125 0.0% $ - 2,221,125 0.0% Possessory Int. 2,081 175,733,689 0.4% $ 971,282 174,762,407 0.4% Unsecured 4,340 1,085,019,139 2.3% $ 7,696,686 1,077,322,453 2.3% Exempt 1,292 71,922,738 0.2% $ 71,922,738 - 0.0% Unknown 4 88 0.0% $ - 88 0.0% TOTALS: 71,910 $ 47,659,144,463 100.00% $ 1,279,868,990 $ 46,379,275,473 100.00% ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY Fiscal Year 2024-25 Fiscal Year 2024-25 P- 6.0% ❑ ® All All Others, ❑ Industrial, ❑ Industrial, 6.6% 5.6% ❑ Commercial, ❑ Commerci `AN 9.3% 9.4% ❑ Residential, ❑ Residential, 79.8% 78.0% Source: HdL Coren & Cone, Los Angeles County Assessor 2024/25 Combined Tax Rolls. 212 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 2015-16 1.000000 - 0.07060 0.11607 - - 1.18667 2016-17 1.000000 - 0.07060 0.11944 - - 1.19004 2017-18 1.000000 - 0.07060 0.13535 - - 1.20595 2018-19 1.000000 - 0.07060 0.49614 - - 1.56674 2019-20 1.000000 - 0.07060 0.35718 - - 1.42778 2020-21 1.000000 - 0.07060 0.40498 - - 1.47558 2021-22 1.000000 - 0.07060 0.38485 - - 1.45545 2022-23 1.000000 - 0.07060 0.36842 - - 1.43902 2023-24 1.000000 - 0.07060 0.37442 - - 1.44502 2024-25 1.000000 - 0.07060 0.37739 - - 1.44799 DIRECT and OVERLAPPING PROPERTY TAX RATES Fiscal Year 2024-25 1.200000 1.000000 0.800000 0.600000 0.400000 0.200000 0.000000 Y FLOOD ITROL LA COUNTY DISTRICTS Source: HdL Coren & Cone, Los Angeles County Assessor 2015/16 - 2024/25 Tax Rate Table 213 This page intentionally left blank. 214 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 City Share of 1% Total City Roll Year per Prop. 13 Debt Rates Rates 2024-25 0.086630 0.000000 0.086630 RDA Incremental Rate Total Direct Rate Prop. 13 plus applicable voter -approved debt 0.00000% 8.92300% Agency 2024-25 LA County General (001.05) 0.18580 Notes: General fund tax rates are Consolidated Fire Protection District of LA Co. (007.30) 0.18090 representative and based upon the direct Educational Augmentation Fund Impound (400.01) 0.13200 and overlapping rates for the largest William S. Hart Union High (757.02) 0.09400 General Fund tax rates area (TRA) by net SCV Water Agency (302.01) 0.06550 taxable value. Total Direct Rate is the Saugus Union School District (581.01) 0.06280 weighted average of all individual direct City of Santa Clarita Tax District 1 (249.01) 0.05920 rates applied by the government preparing Educational Revenue Augmentation Fund (ERAF) (400.00) 0.05430 the statistical section information. William S. Hart Elementary School Fund (757.07) 0.04940 The percentages presented in the columns Santa Clarita Community College (814.04) 0.04320 above do not sum across rows. In 1978 Santa Clarita Library (249.56) 0.02740 California voters passed Proposition 13, LA County Flood Control Maintenance (030.70) 0.01210 which set the property tax at a 1.00% fixed Santa Clarita Valley Sanitation Dist. LA Co. 0.00989 amount. This 1.00% is shared by all the County School Service Fund Saugus Union (581.06) 0.00905 taxing agencies for which the subject LA County Fire - Ffw (007.31) 0.00550 property resides within. In addition to the Childreds Institutional Tuition Fund (400.21) 0.00327 1.00% fixed amount, property owners are LA County Flood Control Improvement District (030.10) 0.00217 charged taxes as a percentage of assessed County School Services (400.15) 0.00165 property values for the payment of any Development Center Handicapped Saugus Union (581.07) 0.00104 voter -approved bonds. County School Service Hart William S. Hart (757.06) 0.00039 Greater LA Co. Vector Control (061.80) 0.00031 LA County Accum Cap Outlay (001.20) 0.00013 Total Prop. 13 Rate: 1.00000 SCV Water Agency (302.01) 0.065500 Newhall Elementary School District Debt Services 2004 Refunding Bonds (581.52) 0.007590 Newhall Elementary School District Debt Services 2011 Ser. A (581.54) 0.026177 William S. Hart Unified Debt Services 2001 Ser. B (757.52) 0.012499 William S. Hart Un.Hsd Debt Services 2008 Ser. B (757.54) 0.007638 William S. Hart Un.Hsd Debt Services 2008 Ser. C (757.56) 0.001783 William S. Hart Un.Hsd Debt Services 2013 Ref. Bds. (757.57) 0.009748 William S. Hart Un.Hsd Debt Services 2020 Ref. Bds. (757.59) 0.022138 Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52) 0.003149 Santa Clarita Community College Debt Services 2006 Ser. 2012 (814.56) 0.000065 Santa Clarita Community College Debt Services 2013 Refunding Bonds (814.57) - Santa Clarita Community College Debt Services 2006 Ser. 2014 (814.58) 0.000189 Santa Clarita Community College Debt Services 2016 Refunding Bonds (814.59) 0.005648 Santa Clarita Community College Debt Services 2006 Ser. 2016 (814.60) 0.001438 Santa Clarita Community College Debt Services 2016 Ser. 2017 (814.61) 0.003307 Santa Clarita Community College Debt Services 2016 Ser. 2019 (814.62) 0.002835 Santa Clarita Community College Debt Services 2019 Refunding Bonds (814.63) 0.003277 Santa Clarita Community College Debt Services 2021 Refunding Bonds (814.64) 0.008662 Santa Clarita Community College Debt Services 2016 Ser. 2022 (814.65) 0.007428 Total Tax Rate 0.189071 Source: HdL Coren & Cone, Los Angeles County Assessor 2024/25 Annual Tax Increment Tables 215 City of Santa Clarita Principal Property Taxpayers Current Fiscal Year and Nine Fiscal Years Ago FISCAL YEAR 2024-25 PERCENT of Number TOTAL TOTAL CITY Primary of ASSESSED ASSESSED OWNER/TAXPAYER Use/Agency Parcels VALUE VALUE Centennial VTC LLC Commercial TD #1 17 $ 428,895,428 0.95 % Ridgewood Vista Canyon LLC Residential TD #1 3 240,533,698 0.53 COV SC Land LLC Industrial Succesor Agency 16 162,014,164 0.36 Park Sierra Properties Residential TD #1 15 160,356,236 0.35 Bel Valencia LLC Lessor Commercial TD #1 9 150,876,148 0.33 SoCal Innovation Park Owner DE LLC Industrial TD #1 14 138,893,390 0.31 Wesco IV LLC Residential TD #1 2 136,480,799 0.30 Saugus Colony Limited Residential TD #1 19 134,626,430 0.30 Trea River Oaks Owner LLC Commercial TD #1 7 129,857,067 0.29 Kaiser Industrial TD #1 7 115,068,053 0.25 Total All Others Total Assessed Valuation 109 1,797,601,413 3.96 % 43,556,190,194 96.04 $ 45,353,791,607 100.00 % NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: HdL Coren & Cone, Los Angeles County Assessor 2024/25 Combined Tax Rolls 216 City of Santa Clarita Principal Property Taxpayers (Continued) Current Fiscal Year and Nine Fiscal Years Ago FISCAL YEAR 2015-16 PERCENT of Number TOTAL TOTAL CITY of ASSESSED ASSESSED OWNER/TAXPAYER Parcels VALUE VALUE Valencia Town Center Venture LP 17 $ 367,936,798 1.35 % Packard Humanities Institute 1 208,435,089 0.76 Saugus Colony Limited 20 144,010,414 0.53 PFI Valencia LLC 9 138,800,017 0.51 Park Sierra Properties 15 135,206,123 0.49 EQR Valencia LLC 218 101,364,875 0.37 EQR The Oaks LLC 28 99,293,291 0.36 Valencia Biomedical Park LLC 5 98,603,931 0.36 ARC SLSTCCA001 LLC 4 96,000,000 0.35 RREEF America REIT II Corporation 2 80,968,282 0.30 Total 319 1,470,618,820 5.38 % All Others 25,860,244,518 94.62 Total Assessed Valuation $ 27,330,863,338 100.00 % 217 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 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% 2023-24 39,092,576 38,720,597 99.0% - 38,720,597 99.05% 2024-25 40,408,662 39,811,722 98.5% - 39,811,722 98.52% TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 d 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 FISCALYEAR NE—J ' NIL__j 2021-22 2022-23 2023-24 2024-25 ■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 218 City of Santa Clarita Successor Agency Top Property Owners Based on Net Values Fiscal Year 2024-25 Secured Unsecured Combined % of % of % of Owner Parcels Value Net AV parcels Values Value Net AV Net AV 1 COV-SAUGUS B LLC 5 $ 114,131,876 11.49% $ 114,131,876 10.36% 2 SPECTRUM PACIFIC WEST LLC 3 45,158,496 41.57% 45,158,496 4.10% (Pending Appeals On Parcels) 3 COV SC LAND 5 36,889,422 3.71% 36,889,422 0 4 LA RAILROAD 93 LLC 24 33,371,780 3.36% 33,371,780 3.03% 5 NEWHALL BLISS LLC 10 32,701,716 3.29% 32,701,716 2.97% 6 NEWHALL CROSSING LLC 3 26,075,441 2.62% 26,075,441 2.37% (Pending Appeals On Parcels) 7 BURRTEC WASTE INDUSTRIES INC 1 20,422,968 18.80% 20,422,968 1.85% 8 ELLIS RAYMOND C AND ROCIO TRUST 2 12,899,496 1.30% 12,899,496 1.17% (Pending Appeals On Parcels) 9 JDH 3 12,883,149 1.30% 12,883,149 1.17% 10 TELFAIR CORPORATION 2 12,651,576 11.65% 12,651,576 1.15% (Pending Appeals On Parcels) Top Ten Total 52 $ 268,952,880 27.07% Agency Total Incremental Net AV Total Source: HdL Coren & Cone 993,520,569 $ 747,261,824 35.99% 6 $78,233,040 72.01% $ 347,185,920 31.51% 108,630,786 1,102,151,355 $90,699,134 86.26% $ 837,960,958 41.43% 219 This page intentionally left blank. 220 City of Santa Clarita Successor Agency Project Area Assessment Appeals Summary and Tax Collection History Fiscal Years 2015-16 Through 2024-25 Project Area Assessment Appeals Summary—FY 2024-25 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 19 15 13.1% 38 / $284,750,269 30 $ 194,558,453 Tax Collection History For Fiscal Years 2014-15 Through 2023-24 Current Year Current Year Prior Year Collection Total Collection Year Tax Levy Collection Collection Total Percentage Percentage 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% 2023-24 8,269,362 8,140,932 153,624 8,294,556 98% 100% 2024-25 8,814,472 8,680,380 172,046 8,852,426 98% 100% Source: Los Angeles County Auditor/Controller Ledgers and special reports pursuant to AB X 26. 221 City of Santa Clarita Charge Detail Report for CFD 2002-1 (Valencia Town Center) Fiscal Year 2024-25 ASSESSOR'S PARCEL NUMBER PROPERTY O`1 NER LAND ASSESSED VALUES ($) STRUCTURE ASSESSED VALUES ($) TOTAL ASSESSED VALUES ($) TAXABLE ACREAGE 2861-058-071 Centennial VTC, LLC $ 1,434,906 $ 218,646 $ 1,653,552 0.84 2861-058-072 Centennial VTC, LLC 3,977,341 20,677,395 24,654,736 4.81 2861-058-073 Centennial VTC, LLC 31,431,596 3,873,247 35,304,843 15.68 2861-058-076 Centennial VTC, LLC 1,001,270 99,439 1,100,709 1.18 2861-058-077 Centennial VTC, LLC 5,406,449 462,437 5,868,886 6.70 2861-058-081 Centennial VTC, LLC 18,283,458 196,271,422 214,554,880 14.34 2861-058-084 Centennial VTC, LLC 3,771,774 10,932,699 14,704,473 2.05 2861-058-085 Centennial VTC, LLC 491,962 245,977 737,939 0.33 Totals: $ 65,798,756 $ 232,781,262 $ 298,580,018 45.94 222 City of Santa Clarita Charge Detail Report for CFD 2002-1 (Valencia Town Center) (Continued) Fiscal Year 2024-25 ASSESSOR'S PARCEL NUMBER CLASS MAX TAX RATE ($) MAX TAX APPLIED RATE M CHARGE ($) 2861-058-071 1 $ 41,746 $ 35,238 $ 31,285 $ 26,407 2861-058-072 1 41,746 200,799 31,285 150,480 2861-058-073 1 41,746 654,662 31,285 490,607 2861-058-076 1 41,746 49,427 31,285 37,041 2861-058-077 1 41,746 279,699 31,285 209,608 2861-058-081 1&2 41,746 & 41,757 598,717 31,289 448,681 2861-058-084 1 41,746 85,579 31,285 64,134 2861-058-085 1 41,746 13,693 31,285 10,261 $ 1,917,814 $ 1,437,219 223 City of Santa Clarita Ratio of Outstanding Debt by Type Last Ten Fiscal Years GOVERNMENTAL ACTIVITIES FISCAL PRIVATE PURCHASE GASB 87 GASB 96 YEAR LOANS (6) BONDS (1) PLACEMENT LEASE (3) FINANCE LEASES (4) SUBSCRIPTION (5) 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 75,762,440 129,277 880,316 3,605,688 2022-23 - 92,553,433 97,376 544,549 2,843,206 2023-24 2,700,000 89,592,169 64,218 369,641 2,393,602 2024-25 3,000,000 86,490,902 29,754 972,537 2,372,505 NOTES: (1) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue Bonds (Golden Valley Road), Series 2007 for the acquisition of right-of-way. - On June 22, 2016, the Santa Clarita Public Financing Authority issued $10,320,000 in Series 2016A Lease Revenue Bonds (Golden Valley Road) to advance refund $11,260,000 of outstanding 2007 Series bonds. As a result, the 2007 Series were considered defeased and the liability for those bonds was removed from the general long-term debt. - On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD) to advance refund $15,070,000 of outstanding 2007 Series certificates. - On June 1, 2018, the Santa Clarita Public Financing Authority issued $15,300,000 in Lease Revenue Bonds for the acquisition and retrofit of streetlights located within the City from Southern California Edison. - On June 27, 2019, the Santa Clarita Public Financing Authority issued $25,850,000 in Lease Revenue bond proceeds for the construction of a new SheriffStation 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 4, 2022, the Santa Clarita Public Financing Authority issued $12,845,000 in Series 2022A Lease Revenue Bonds and $5,970,000 in Series 2022B Lease Revenue Bonds to provide funds to pay for a portion of the costs of financing certain energy efficiency improvements for City. - Deferred amount for issuance premium, net of discount is included above. (2) 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. (3) 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. (4) On July 1, 2021, the City of Santa Clarita adopted Governmental Account Standards Board Statement No. 87 Leases. (5) On July 1, 2022, the City of Santa Clarita adopted Governmental Account Standards Board Statement No. 96 Subscription -Based Technology Arrangements. (6) On March 6 2023, the City entered into a loan agreement with the California Energy Commission (CEC) in the amount of $3,000,000. The purpose of this Energy Conservation Assistance Act (ECAA) one percent interest loan was to fund the upgrades of existing interior and exterior lighting to LEDs and retrofits of existing HVAC equipment and transformers to high efficiency units at multiple sites. Sources: City of Santa Clarita, Administrative Services Department - Finance Division 224 City of Santa Clarita Ratio of Outstanding Debt by Type (Continued) Last Ten Fiscal Years PERCENTAGE SUCCESSOR AGENCY OF OUTSTANDING TAX TOTAL TAXABLE DEBT DEBT TO GOVERNMENTAL ALLOCATION GRAND PRIMARY ASSESSED PER PERSONAL ACTIVITIES TOTAL BONDS (2) TOTAL GOVERNMENT VALUE CAPITA INCOME 32,679,640 30,407,443 32,679,640 0.12% 149 N/A 30,407,443 - 78,802,979 30,407,443 0.11% 141 N/A 44,008,771 34,794,208 101,473,977 44,008,771 0.14% 203 N/A 67,513,430 33,960,547 99,420,537 67,513,430 0.21% 310 N/A 66,313,650 33,106,887 110,641,139 66,313,650 0.19% 299 N/A 78,417,913 32,223,226 115,277,975 78,417,913 0.21% 354 N/A 80,377,721 31,294,566 129,207,675 80,377,721 0.21% 351 N/A 96,038,564 30,325,905 129,207,675 96,038,564 0.23% 416 N/A 95,119,630 29,307,245 126,820,477 95,119,630 0.21% 413 N/A 92,865,698 28,243,585 123,481,788 92,865,698 0.20% 400 N/A 450 450 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 - 0 OUTSTANDING DEBT PER CAPITA Last Ten Fiscal Years 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Fiscal Year 225 City of Santa Clarita Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years PERCENTAGE OUTSTANDING GENERAL BONDED DEBT OF TAXABLE DEBT FISCAL REVENUE ASSESSED PER YEAR POPULATION(1) BONDS TOTAL VALUE CAPITA 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 2023-24 230,428 89,592,169 89,592,169 0.20% 389 2024-25 232,377 86,490,902 86,490,902 0.19% 372 450 400 350 300 250 200 150 100 50 GENERAL BONDED DEBT OUTSTANDING PER CAPITA Last Ten Fiscal Years 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Fiscal Year Source: (1) State of California, Finance Department 226 City of Santa Clarita Direct and Overlapping Tax and Assessment Debt June 30, 2025 2024-25 Assessed Valuation: $46,379,275,473 (Net of Redevelopment Agency Incremental Value of $837,960,958) 2024-25 Population: 232,377 Percent City's Share Total Debt Applicable of Debt 06/30/2025 To City (1) 06/30/2025 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Santa Clarita Community College District $ 358,983,234 1% $ 275,422,707 William S. Hart Union High School District $ 258,690,624 77% $ 198,451,925 William S. Hart Union High School District Community Facilities District No. 2005-1 $ 16,015,000 100% $ 16,015,000 William S. Hart Union High School District Community Facilities District No. 2015-1 $ 23,970,000 100% $ 23,970,000 William S. Hart Union High School District Community Facilities District No. 90-1 $ 10,000 100% $ 10,000 Los Angeles Community College and Unified School Districts $ 16,664,910,000 0.000005%-0.00001% $ 1,421 Castaic Union School District $ 28,275,000 26% $ 7,389,106 Newhall School District School Facilities Improvement District No. 2011-1 $ 52,475,000 63% $ 33,152,131 Saugus Union School District School Facilities Improvement District No. 2014-1 $ 116,820,000 98% $ 114,317,716 Saugus Union School District Community Facilities District No. 2005-1 $ 12,180,000 100% $ 12,180,000 Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 1 $ 23,845,000 100% $ 23,845,000 Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 2 $ 18,295,000 100% $ 18,295,000 Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 3 $ 17,435,000 100% $ 17,435,000 Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 1 $ 10,445,000 100% $ 10,445,000 Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 2 $ 5,890,000 100% $ 5,890,000 Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 3 $ 12,630,000 100% $ 12,630,000 Saugus Union School District Community Facilities District No. 2019-1 $ 8,980,000 100% $ 8,980,000 Saugus -Hart School District Community Facilities District No. 2000-1 $ 5,470,000 100% $ 5,470,000 Community Facilities District No. 2006-1 C $ 12,175,000 100% $ 12,175,000 Sulphur Springs Union School District $ 69,725,090 95% $ 66,076,376 Sulphur Springs Union School District No 2002-1 $ 20,885,000 100% $ 20,885,000 Sulphur Springs Union School District No 2006-1 $ 21,885,879 100% $ 21,885,879 Sulphur Springs Union School District No 2014-1 $ 18,180,000 100% $ 18,180,000 Sulphur Springs Union School District No 2019-1 $ 34,625,000 100% $ 34,625,000 City of Santa Clarita Community Facilities District No. 2002-1 $ 9,815,000 100% $ 9,815,000 City of Santa Clarita Community Facilities District No. 2016-1 $ 16,740,000 100% $ 16,740,000 California Municipal Finance Authority Community Facilities District No. 2022-25, I.A. No. 1 $ 18,430,000 100% $ 18,430,000 California Municipal Finance Authority Community Facilities District No. 2022-25, I.A. No. 2 $ 8,785,000 100% $ 8,785,000 City of Santa Clarita 1915 Act Bonds $ 185,000 100% $ 185,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 1,011,682,261 DIRECT AND OVERLAPPING GENERAL FUND DEBT. Los Angeles County General Fund Obligations $ 3,036,637,390 0% $ 67,018,587 Los Angeles County Superintendent of Schools Certificates of Participation $ 2,331,775 2% $ 51,462 Santa Clarita Community College District Certificates of Participation $ 4,055,000 77% $ 3,111,118 William S. Hart Union High School District General Fund Obligations $ 54,401,633 77% $ 41,733,669 Castaic Union School District Certificates of Participation $ 2,315,000 26% $ 604,979 Sulphur Springs Union School District Certificates of Participation $ 28,280,000 95% $ 26,800,108 Los Angeles Unified School District Certificates of Participation $ 225,010,000 0% $ 23 City of Santa Clarita Obligations $ 92,865,698 100% $ 92,865,698 (2) TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 232,185,644 Total Net Direct and Overlapping General Fund Debt $ 232,185,644 OVERLAPPING TAX INCREMENT DEBT (Successor Agency l $ 27,665,000 1% $ 27,665,000 Total Direct Debt $ 92,865,698 Gross Total Overlapping Debt $ 1,178,667,207 Net Total Overlapping Debt $ 1,178,667,207 GROSS COMBINED TOTAL DEBT $ 1,271,532,905 NET COMBINED TOTAL DEBT $ 1,271,532,905 (1) Percentage of overlapping debt applicable to the city is estimated using taxable assed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable value (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. Ratios to 2024-25 Assessed Valuation: Total Overlapping Tax and Assessment Debt... _218% Total Direct Debt($92,865,697.60)......................................................................0.20% Combined Total Debt.._._._._._._._............................................................................. 2.74% Ratios to Redevelopment Successor Agency Incremental Valuation ($809.031.717): Total Overlapping Tax Increment Debt... _. _. _. _. _. _. _. _....3.30% Source: California Municipal Statistics, Inc. 227 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit City of Santa Clarita Legal Debt Margin Information Last Ten Fiscal Years FISCAL YEAR 24-25 23-24 22-23 21-22 20-21 $ 46,379,275,473 25% $ 44,635,716,372 25% $ 41,356,729,027 25% $ 38,390,714,609 25% $ 36,983,412,434 25% 11,594,818,868 15% 11,158,929,093 15% 10,339,182,257 15% 9,597,678,652 15% 9,245,853,109 15% 1,739,222,830 1,673,839,364 1,550,877,339 1,439,651,798 1,386,877,966 $ 1,739,222,830 $ 1,673,839,364 $ 1,550,877,339 $ 1,439,651,798 $ 1,386,877,966 0% 0% 0% 0% 0% Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State. Source: City of Santa Clarita, Administrative Services Department - Finance Division 228 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit N _ 0 1,800 1,600 1,400 1,200 1,000 S00 600 400 200 0 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Fiscal Year City of Santa Clarita Legal Debt Margin Information (Continued) Last Ten Fiscal Years FISCAL YEAR 19-20 18-19 17-18 16-17 15-16 $ 35,174,818,421 25% $ 32,480,968,597 25% $ 30,727,345,419 25% $ 28,685,821,032 25% $ 27,330,863,338 25% 8,793,704,605 15% 8,120,242,149 15% 7,681,836,355 15% 7,171,455,258 15% 6,832,715,835 15% 1,319,055,691 1,218,036,322 1,152,275,453 1,075,718,289 1,024,907,375 $ 1,319,055,691 $ 1,218,036,322 $ 1,152,275,453 $ 1,075,718,289 $ 1,024,907,375 0% 0% 0% 0% 0% LEGAL DEBT MARGIN Last Ten Fiscal Years 229 This page intentionally left blank. 230 City of Santa Clarita Demographic and Economic Statistics Last Ten Calendar Years AVERAGE AVERAGE PER CITY OF ANNUAL LOS ANGELES ANNUAL CAPITA TOTAL SANTA CLARITA PERCENTAGE COUNTY PERCENTAGE PERSONAL PERSONAL UNEMPLOYMENT YEAR POPULATION (1) INCREASE POPULATION (1) INCREASE INCOME (2) INCOME (2) RATE (3) 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% 76,445 984,030,663 4.70% 2023 230,659 0.80% 9,761,210 -1.01% 80,898 1,035,420,068 5.30% 2024 230,428 -0.10% 9,824,091 0.64% N/A N/A 6.20% 2025 232,377 0.84% 9,876,811 0.54% N/A N/A 5.50% 4.50% 3.50% 2.50% 1.50% 0.50% -0.50% -1.50% POPULATION INCREASE Last Ten Fiscal Years 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YEAR Sources: (1) State of California, Finance Department, as of 1/l/2025: 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, Employment Development Department (EDD), for the month of March 2025 Data for all County Sub -Areas, Year 2024 Note: Reduction in 2017 population numbers due to change in the county controls. The primary factor was a lowering of the estimated school enrollment. 231 City of Santa Clarita Principal Employers Current Fiscal Year and Nine Fiscal Years Ago 2025* 2016 PERCENT PERCENT NUMBER of NUMBER of of TOTAL of TOTAL EMPLOYER EMPLOYEES EMPLOYMENT EMPLOYER EMPLOYEES EMPLOYMENT Six Flags Magic Mountain 3,000 14.06% Six Flags Magic Mountain 3,200 11.15% Henry Mayo Newhall Memorial Hospital 1,695 7.94% Princess Cruises 1,948 6.79% California Institute of the Henry Mayo Newhall Arts 1,629 7.63% Memorial Hospital 1,822 6.35% Logix 849 3.98% Quest Diagnostics 913 3.18% Walmart 849 3.98% The Masters College 760 2.65% Woodward HRT 710 3.33% Boston Scientific 750 2.61% Amazon 678 3.18% Woodward HRT 725 2.53% Princess Cruises 668 3.13% Aerospace Dynamics 705 2.46% The Master's College 664 3.11% Advanced Bionics 700 2.44% California Institute of the Boston Scientific 649 3.04% Arts 690 2.40% Largest firms�i� 11,391 53.39% Largest firms(i) 12,213 42.55% All others 9,946 46.61% All others 16,492 57.45% Grand total 21,337 100.00% Grand total 28,705 100.00% * As of September 2025 NOTE: (1)Non-governmental employers Source: 2025 Economic Outlook Santa Clarita Valley Economic Dev Corp & College of the Canyons, ACFR 2016 232 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 24-25 23-24 22-23 (3) 21-22 20-21 19-20 18-19 17-18 16-17 15-16 172.50 173.50 172.50 87.50 85.00 84.00 81.00 76.00 76.00 91.00 94.00 93.00 94.00 142.50 141.50 141.50 139.50 126.50 128.50 131.50 63.50 63.50 63.50 46.00 45.00 45.00 44.00 43.00 44.00 37.00 56.40 53.40 53.40 69.50 67.25 68.25 68.25 63.90 63.90 112.15 86.50 86.50 84.50 105.60 103.60 102.60 99.60 79.00 74.00 - 10.00 10.00 10.00 10.00 10.00 10.00 10.00 12.00 12.00 12.00 482.90 479.90 477.90 461.10 452.35 451.35 442.35 400.40 398.40 383.65 CITY OF SANTA CLARITA - EMPLOYEES Last Ten Fiscal Years 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 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 233 Function Police: Parking citations issued (i) 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 24-25 23-24 22-23 21-22 20-21 19,712 21,787 23,512 18,651 11,359 $ 844,721 $ 972,705 $ 1,101,410 $ 747,323 $ 417,978 24.0 20.0 24.0 58.2 28.0 1,569 1,572 1,518 2,038 1,593 12,512 12,097 7,078 12,096 10,016 2,551,074 2,056,971 2,453,098 1,900,958 1,673,828 NOTE: (1) The City contracts with 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 234 Function Police: Parking citations issued (i) 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 19-20 18-19 17-18 16-17 15-16 13,992 24,214 15,505 13,133 9,035 $ 516,477 $ 364,954 $ 498,749 $ 470,843 $ 379,384 38.7 26.0 38.9 45.0 15.5 2,197 2,773 2,903 2,992 2,918 11,778 12,787 12,013 19,924 13,390 2,131,694 2,680,202 2,775,327 2,864,351 3,167,021 235 City of Santa Clarita Capital Assets Statistics by Function Last Ten Fiscal Years FISCAL YEAR Function 24-25 23-24 22-23 21-22 20-21 19-20 18-19 17-18 16-17 15-16 14-15 Public works: Streets (miles) 597 597 596 573 573 570 540 540 537 516 497 Streetlights(1) 18,834 18,832 18,832 18,703 18,622 18,662 18,662 18,662 17,843 17,843 17,843 Traffic signals (City Jurisdiction) 205 202 200 199 198 195 187 187 186 180 180 Traffic signals (Joint Jurisdiction) 2 2 4 4 4 4 5 5 5 5 5 Parks and recreation: Number of parks 39 36 35 35 34 33 32 32 32 32 32 Community centers 3 2 2 2 2 2 2 2 2 2 2 Transit: Stations 6 6 4 4 4 4 4 4 4 4 4 (1) The City of Santa Clarita assumed responsibility for the Streetlight Maintenance District from Los Angeles County in 1998. Subsequently, between 2019 and 2021 the City purchased the majority of streetlights from Southern California Edison and converted the lights to LED. At this time, the City owns and is responsible for 18,834 streetlights, inclusive of Highway Safety Lights which are attached to traffic signals. Source: City of Santa Clarita, Administrative Services Department - Finance Division 236 � 4 gANTA CL 9 OL2OFO �5 D ECEM8��1 �^ City of SANTA GLARITA 23920 Valencia Blvd. Suite 300 Santa Clarita, CA 91355 SantaClarita.gov THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M December 12, 2025 To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (the "City") and the financial statements of Air Quality Improvement Special Revenue Fund, Transit Enterprise Fund, and Open Space Preservation District Special Revenue Fund for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 1, 2025. Professional standards also require that we communicate the following information related to our audit. Sienificant 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. New Accounting Standards GASB Statement No. 101 — In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement results in a restatement of the beginning net position as of July 1, 2024. GASB Statement No. 102 — In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints which may limit a government's ability to acquire resources or control spending. Application of this statement did not have a significant effect on the City's financial reporting for the fiscal year ended June 30, 2025. No other new accounting policies were adopted and the application of existing policies was not changed during 2025. 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. 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 Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: • Management's estimate of the investment fair market value is based on information provided by U.S. Bank, the custodian of the investments based on interactive data. We evaluated the 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. • Management's estimate of the depreciation and amortization on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole. • Management's estimate for compensated absences is based on the outstanding balance of paid time off that more likely than not will be used or paid. • Management's estimate of the net pension liabilities is based on the actuarial valuation on total pension liability and based on audited financial statements on fiduciary net position for CAPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole. • Management's estimate of the net other postemployment benefits ("OPEB") liability is based on the actuarial valuation on total OPEB liability and financial statements on fiduciary net position. We evaluated the key factors and assumptions used to develop the OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: • Note 1 — Summary of Significant Accounting Policies • Note 13 — Pension Plan • Note 14 — Other Postemployment Benefits ("OPEB") • Note 21 — Commitments and Contingencies The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 3 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 12, 2025. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the Management's Discussion & Analysis, Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions — Pensions, the Schedules of Changes in Net OPEB Liability and Related Ratios, and Schedules of Contributions — Other Postemployment Benefits, which are Required Supplementary Information ("RSI") that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the Combining and Individual Fund Financial Statements, which accompany the financial statements but are not 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 RSL Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 4 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 Independent Accountant's Report on Applying Agreed -Upon Procedures to Appropriations Limit Schedule For the Year Ended June 30, 2025 THE � PUN GROUP ACCOUNTANTS & ADVISORS THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M INDEPENDENT ACCOUNTANT'S REPORT ON 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, California (the "City") for the year ended June 30, 2025. The City's management is responsible for the Appropriations Limit Schedule. The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was agreed to by the City and the League of California Cities (as presented int eh publication entitled Agreed -upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and associated findings are as follows: 1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2025, and verified that the limit and annual calculation factors were adopted by resolution of the City Council. We also verified that the population and inflation options were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments, and agreed the resulting amount to the current year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City. Finding: No exceptions were noted as a result of our procedures. 4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council. Finding: No exceptions were noted as a result of our procedures. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 We were engaged by the City to perform this agreed -upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed -upon procedures engagement. This report is intended solely for the information and use of the City Council and the management of the City and is not intended to be and should not be used by anyone other than these specified parties. Santa Ana, California October 24, 2025 City of Santa Clarita Appropriations Limit Schedule For the Year Ended June 30, 2025 Amount Source A. Appropriations Limit FY 2023-2024 $ 534,946,167 Prior year appropriations limit adopted by the City B. Calculation Factors: 1) Population increase % 0.9973 California Department of Finance 2) Inflation increase % 1.0362 California Department of Finance 3) Total adjustment % 1.0334 (131 x 132) C. Annual Adjustment Increase 17,868,411 {(133-1) x A} D. Other Adjustments: 1) Loss responsibility (-) - N/A 2) Transfer to private (-) - N/A 3) Transfer to fees () - N/A 4) Assumed responsibility (+) - N/A E. Total Adjustments 17,868,411 (C + D) F. Appropriations Limit FY 2024-2025 $ 552,814,578 (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, 2025 Note 1— Purpose of Limited Procedures Review Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to an agreed upon procedures review in connection with the annual audit. Note 2 — Method of Calculation Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. Note 3 — Population Factors A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ended June 30, 2025, represents the annual percentage change in population for the City. Note 4 — Inflation Factors A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2025, represents the annual percentage change for per capita personal income. Note 5 — Other Adjustments A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ended June 30, 2025. Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Santa Clarita, California Financial Statements and Independent Auditor's Reports For the Year Ended June 30, 2025 THE � PUN GROUP ACCOUNTANTS & AD\, ISORS Air Quality Improvement Special Revenue Fund of the City of Santa Clarita For the Year Ended June 30, 2025 Table of Contents Independent Auditor's Reports: 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: BalanceSheet........................................................................................................................................................13 Statement of Revenues, Expenditures, and Change in Fund Balance...................................................................14 Notesto the Financial Statements.........................................................................................................................15 Supplementary Information: Schedule of Revenues, Expenditures, and Change in Fund Balance — Budget and Actual..................................21 Notes to the Schedule of Revenues, Expenditures, and Change in Fund Balance — Budget and Actual ..............23 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinion 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M We have audited the financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund") of the City of Santa Clarita, California (the "City") as of and for the year ended June 30, 2025, and the related notes to the financial statements, as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Air Quality Improvement Special Revenue Fund of the City as of June 30, 2025, and the change in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( "Government Auditing Standards'). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025, 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. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Supplementary Information Our audit was conducted for the purpose of forming opinion on the Fund's financial statements. The Schedule of Revenues, Expenditures, and Change in Fund Balance — Budget and Actual and related note are presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of the management and was derived from and related 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 and related note are fairly stated, in all material respects, in relation to the financial statements as a whole. To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2025, 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 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 12, 2025 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor's Report To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( "Government Auditing Standards'), the financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund"), of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, and have issued our report thereon dated December 12, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over the Air Quality Improvement Special Revenue Fund's financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 12, 2025 THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M REPORT ON COMPLIANCE FOR AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND; AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE Independent Auditor's Report To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Report on Compliance for the Air Quality Improvement Special Revenue Fund Opinion on Compliance We have audited the City of Santa Clarita, California's (the "City") compliance with the type of compliance requirements described in the Assembly Bill 2766, Chapter 1705 (44220 through 44247) ("AB 2766") for the year ended June 30, 2025. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Air Quality Improvement Special Revenue Fund for the year ended June 30, 2025. Basis for Opinion We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America ("GAAS"); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards'); and AB 2766. Our responsibilities under those standards and AB 2766 are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities 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. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and AB 2766 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of the government program as a whole. In performing an audit in accordance with GAAS, 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 Auditor's 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. 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 12, 2025 This page intentionally left blank 10 FINANCIAL STATEMENTS m This page intentionally left blank. 12 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Balance Sheet June 30, 2025 ASSETS Cash and investments Interest receivable Due from South Coast Air Quality Management District Total assets LIABILITIES FUND BALANCE Liabilities: Accounts payable Total liabilities Fund Balance: Restricted Total fund balance Total liabilities and fund balance $ 887,103 5,344 80,207 $ 972,654 $ 330,278 330,278 642,376 642,376 $ 972,654 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, 2025 Revenues: Assembly Bill 2766 revenues $ 307,144 Investment income 42,569 Total revenues 349,713 Expenditures: Current: Administrative 6,982 Air Quality Improvement Program 338,916 Total expenditures 345,898 Net change in fund balance 3,815 Fund Balance: Beginning of year 638,561 End of year $ 642,376 See accompanying Notes to the Financial Statements. 14 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements For the Year Ended June 30, 2025 Note 1— Financial Reporting Entity and Summary of Significant Accounting Policies A. Financial Reporting Entity The financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund") of the City of Santa Clarita, California (the "City") are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Governmental Accounting Standards Board ("GASB") is the acknowledged standard -setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States. The financial statements were prepared from only the accounts of the Fund. Accordingly, the financial statements do not purport to, and do not, present fairly the financial position of the City and changes in financial position thereof. B. Fund Accounting The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with a self -balancing set of accounts. Monies received under Assembly Bill 2766 ("AB 2766") are recorded in the Fund. AB 2766 authorizes the South Coast Air Quality Management District (the "SCAQMD") to impose an annual vehicle registration fee and to distribute a portion of the collected revenues to all local jurisdictions within the South Coast Air Basin. These revenues are to be used solely to reduce air pollution from motor vehicles by implementing new programs and studies necessary for the implementation of the California Clean Air Act. C. Financial Statements Presentation, Basis of Accounting and Measurement Focus The fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Change in fund balance. Special Revenue Fund is accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The primary revenue sources are revenues associated with AB 2766 and interest revenue, which are measurable and considered to be available if they are collected within 90 days of the end of the current fiscal period. The Fund recognizes assets of non -exchange transactions in the period when the underlying transaction occurs when all eligibility requirements are met. Non -exchange transactions occur when one government provides (or receives) value to (from) another party without receiving (or giving) equal or nearly equal value in return. The AB 2766 revenue is an example of a non -exchange transaction. Expenditures are recorded in the accounting period in which the related fund liability is incurred. 15 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note I — Organization and Summary of Significant Accounting Policies (Continued) D. Cash and Investments The Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's Treasurer is responsible for the cash management of the Fund's cash balance, which pools available cash for investment purposes. The cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturity of three months or less from the date of acquisition. Each City fund owns a share of pooled cash and investments, which are separately maintained, and interest income was apportioned based on its average month -end cash balances to the total of the pooled cash and investments. E. Fund Balance In the Fund's financial statements, fund balance is classified as follows: Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Expenditures as they are incurred are applied against these restricted net resources. F. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates and assumptions. Note 2 — Cash and Investments The Fund's share of the City's pooled cash and investments at June 30, 2025 is $887,103. Cash is deposited in the City's internal investment pool, which is reported at the amortized cost. The Fund does not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for cash and investments. Note 3 — Due from South Coast Air Quality Management District The SCAQMD collects revenues from annual vehicle registration fees and allocates a percentage of the revenues collected to the City. As of June 30, 2025, the Fund's due from SCAQMD totaled $80,207. 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, 2025 Note 4 — Commitments and Contingencies The Fund receives monies from the SCAQMD that are subject to review and audit by the SCAQMD. Although such audits could result in disallowed expenditures under terms of the program's guidelines, it is believed that any repayments resulting from disallowances will not be material. Any identified amounts as a result of these audits would be required to be remitted back to the SCAQMD or have future remittances from the SCAQMD deducted accordingly. 17 This page intentionally left blank 18 SUPPLEMENTARY INFORMATION 19 This page intentionally left blank. 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, 2025 Revenues: Assembly Bill 2766 revenues Investment income Total revenues Expenditures: Current: Administrative Air Quality Improvement Program Total expenditures Net change in fund balance Fund Balance: Beginning of year End of year Budget Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 302,100 $ 302,100 $ 307,144 $ 5,044 12,724 12,724 42,569 29,845 314,824 314,824 349,713 34,889 6,153 8,805 6,982 1,823 93,300 341,033 338,916 2,117 99,453 349,838 345,898 3,940 $ 215,371 $ (35,014) 3,815 $ 38,829 638,561 $ 642,376 21 This page intentionally left blank. 22 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Notes to the Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2025 Budgetary Information Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the United States of America for all governmental funds, except that encumbrances are shown in the year incurred for budgetary purposes. On or before the last day in January of each year, all operational units submit requests for appropriations to the City Manager for budget preparation purposes. The proposed budget is presented to the City Council for review. The City Council holds public hearings, and a final budget must be adopted no later than June 30. The appropriated budget is prepared by fund, function, and department at the category level. The City reports the following categories: personnel, operating and capital outlay. Additionally, the City separately prepares a capital improvement projects budget. The budgetary control for the Capital Improvement Program is at the program level. The City's Department Heads, with approval of the City Manager, may make transfers of appropriations within certain line -items within a program, but may not exceed the total appropriated amounts for each category. The City Manager may approve transfers that do not change the total appropriated amount within the fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the category level. The schedule does not present the legal level of budgetary control, which is at the category level. Refer to the City's Annual Comprehensive Financial Report for further information. Under encumbrance accounting, purchase orders, contracts, and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are classified as restricted fund balance. Unexpended appropriations lapse at year-end. 23 This page intentionally left blank. 24 City of Santa Clarita Santa Clarita, California Single Audit and Independent Auditor's Reports For the Year Ended June 30, 2025 THE � PUN GROUP ACCOUNTANTS & ADVISORS City of Santa Clarita Single Audit and Independent Auditor's Reports For the Year Ended June 30, 2025 Table of Contents Independent Auditor's Reports: 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 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS Independent Auditor's Report To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"), the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 12, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies 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 Questioned Costs as item 2025-001 that we consider to be significant deficiencies. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The City's Response to Findings Government Auditing Standards require auditor to perform limited procedures on the City's response to the findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. City's response was not subject 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 12, 2025 THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Independent Auditor's Report To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Santa Clarita, California's (the "City") compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2025. The City's major federal programs are identified in the summary of the auditor's 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, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America ("GAAS"); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States ("Government Auditing Standards"), and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Managementfor 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 federal programs. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we • exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor's 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. 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, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated December 12, 2025, 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 12, 2025 This page intentionally left blank City of Santa Clarita Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2025 Assistance Agency or Federal Grantor/Pass-Through Grantor Listing Pass -Through Program Title Number Number U.S. Department of Housing and Urban Development Community Development Block Grant Cluster Entitlement/ Special Purpose Grants Direct Programs: Community Development Block Grants/Entitlement Grants 14.218 B-22-MC-06-0576 Community Development Block Grants/Entitlement Grants 14.218 B-23-MC-06-0576 Community Development Block Grants/Entitlement Grants 14.218 B-24-MC-06-0576 COVID-19 - Community Development Block Grants/Entitlement Grants - CARES Act 14.218 B-20-MW-06-0576 Total Community Development Block Grant/ Entitlement Grants 14.218 Total Community Development Block Grant Cluster Entitlement/ Special Purpose Grants Total U.S. Department of Housing and Urban Development U.S. Department of Justice Direct Program: Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-24-GG-04646-JAGX 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) 20.205 Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Total Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Federal Transit Cluster Direct Programs: Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 COVID-19 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 COVID-19 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Total Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Total Federal Transit Cluster Total U.S. Department of Transportation U.S. Department of the Treasury Direct Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Total U.S. Department of the Treasury Total Expenditures of Federal Awards STPLR 130L(305) BHLS-5450(101) DEM L22-5450(104) CA-90-Y276-02 CA-2017-138-00 CA-2019-125-00 CA-2021-138-00 CA-2021-193-00 CA-2022-125-00 CA-2022-167-00 CA-2023-074-00 CA-2023-132-00 Federal Expenditures Expenditures to Subrecipients S 707,936 S 707,936 1,275,153 1,275,153 721,224 444,482 218,960 218,959 2,923,273 2,646,530 2,923,273 2,646,530 2,923,273 2,646,530 20,317 20,317 528 53,567 1,118,990 1,173,085 157,838 77,292 790,124 825,559 1,396,694 10,903,902 508,582 26,983 882,943 15,569,917 15,569,917 16,743,002 1505-0271 133,192 133,192 $ 19,819,784 $ 2,646,530 See accompanying Notes to the Schedule of Expenditures of Federal Awards. 7 City of Santa Clarita Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2025 Note 1— Reporting Entity The financial reporting entity, as defined by the Governmental Accounting Standards Board ("GASB") Codification, consists of the primary government, which is the City of Santa Clarita, California (the "City"), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City's financial statements to be misleading or incomplete. The City Council acts as the governing body and is able to impose its will on the following organization, establishing financial accountability: • The Santa Clarita Public Financing Authority • The Santa Clarita Public Television Authority Note 2 — Summary of Significant Accounting Policies Basis of Accounting Funds received under the various grant programs have been recorded within the special revenue funds and enterprise fund of the City. The City utilizes the modified accrual basis of accounting for the special revenue funds and the accrual basis of accounting for the enterprise fund. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City's basic financial statements. Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California 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. City of Santa Clarita Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2025 Note 3 — Subrecipients During the year ended June 30, 2025, the City has the following subrecipients: Assistance Amount Provided Listing Number Program Name / Subrecipient Name to Subrecipients 14.218 Community Development Block Grants / Entitlement Grants: Handy worker / Santa Clarita Valley Committee on Aging $ 446,732 Project Special Children of the Valley / Carousel Ranch Inc. 10,644 Ready to Work/Carousel Ranch Inc. 13,302 Transportation for Disabled Adults/Avenues Supported Living Services 28,768 CDBG-CV Scholarship Program/ Santa Clarita Valley Boy s and Girls Club 26,500 CDBG-CV Low -Mod Income Household Support/Family Promise of Santa Clarita Valley 31,861 The Study Place/FosteringYouth Independence 23,470 Rent and Utility Assistance Program/The Salvation Army 50,000 Virtual Assistance Program/Single Mothers Outreach 19,422 Child Care Scholarships/Santa Clarita Valley Family YMCA 38,939 Low -Mod Income Household Support/Family Promise of Santa Clarita Valley 34,783 Case Management / Fostering Youth Independence 40,835 Community Access Services/ Santa Clarita Valley Committee on Aging 37,895 Homeless Intake and Assessment / Bridge To Home 54,665 Mental Health for Single Parents and their Children/Single Mothers Outreach, Inc. 29,802 Design/Build Play Area At Valencia Glen Park 526,612 Old Orchard Park Phase I Improvement Project 1,232,300 $ 2,646,530 City of Santa Clarita Schedule of Findings and Questioned Costs For the Year Ended June 30, 2025 Section I — Summary of Auditor's Results Financial Statements Types of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: • Material weakness(es) identified? No • Significant deficiency(ies) identified? 2025-001 Noncompliance material to financial statements noted? No Federal Awards Internal control over major federal programs: • Material weakness(es) identified? No • Significant deficiency(ies) identified? None Reported Type of auditor's report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No Identification of major federal programs: Assistance Listing Federal Numbers Major Federal Program or Cluster Expenditures 20.507 Federal Transit Cluster $ 15,569,917 Total Expenditures of All Major Federal Programs $ 15,569,917 Total Expenditures of Federal Awards $ 19,819,784 Percent of Total Expenditures of Federal Awards 78.56% 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, 2025 Section II — Financial Statement Findings A. Current Year Findings —Financial Statement Finding 2025-001: Internal Control Over Financial Reporting — Prior Period Adjustments Criteria: Management is responsible for the preparation and fair presentation as well as the accuracy of its financial statements including disclosures in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. As part of satisfying that responsibility, management should ensure complete year-end closing and diligently produce reliable and accurate financial information. In essence, accounting policies and procedures would aid the City in providing training for accounting personnel, communicating and providing a source of reference to approved policies, and maintaining consistency of recording financial transactions. Condition: During the year ended June 30, 2025, the City reported prior period adjustments to the governmental activities beginning net position due to corrections to the developer credit in the amount of $14,166,245 and California Energy Commission 2024 loan in the amount of $2,700,000. Cause: The City did not have formal policies and procedures for communicating, reconciling, and reviewing the B&T credit issued and used. In addition, there was ineffective review of account coding when the debt proceed was initially received in the prior year as other revenue instead of other financing sources. Context and Effect: Prior period adjustments were reported in the financial statements for the year ended June 30, 2025. Recommendation: We recommend that the City improve its review processes over developer credit and proceed from loan to ensure they are thoroughly reviewed and accurately recorded. Views of Responsible Officials: The City concurs the finding. Bridge and Thoroughfare (B&T) Credits During Fiscal Year 24/25, Finance staff identified bridge and thoroughfare credits recorded on the City's financial statements did not reconcile with the Traffic Division's records. When identified, staff immediately conducted an internal review of all bridge and thoroughfare credits. As a part of the review and analysis, staff identified bridge and thoroughfare credits were overstated by a net amount of $14,166,242. The City immediately took several actions to implement additional procedures and controls to ensure accuracy is maintained going forward. 11 City of Santa Clarita Schedule of Findings and Questioned Costs (Continued) For the Year Ended June 30, 2025 Section II — Financial Statement Findings (Continued) A. Current Year Findings — Financial Statement (Continued) Finding 2025-001: Internal Control Over Financial Reporting — Prior Period Adjustments (Continued) Views of Responsible Officials: (Continued) Bridge and Thoroughfare (B&T) Credits (Continued) These include: 1) A new master B&T tracking matrix was developed and will be maintained by Traffic on an ongoing basis; 2) Public Works will generate an annual fiscal year end record to certify credit balances are accurate; 3) A new electronic Laserfiche form was developed to establish a formal workflow that includes date/time stamps and email reminders to prevent an abandoned form, whereby Finance acknowledges the issuance/usage/transfer of credits prior to Public Works signing a letter to the developer certifying the action, followed by Finance assigning a journal entry number confirming the credit was recorded in the City's financial system, completing the workflow; and 4) Finance has added a line item to its year-end audit task list, requiring a positive, signed confirmation from Public Works staff, (Transportation Planning Analyst, Assistant City Engineer, and Director of Public Works) certifying B&T credit balances are accurate for each fiscal year. California Energy Commission Loan Additional internal training has been provided to Finance staff. Staff have also attended California Society of Municipal Finance Officers' (CSMFO) trainings including the Annual Weekend Training Seminar. Staff will be attending various upcoming webinars focused on governmental accounting and municipal financing, as well as training sessions at the annual CSMFO conference. A line item has been added to Finance's year-end audit task list, requiring staff review and evaluate unique transactions, including debt issuance, to ensure the transactions are properly recorded. A note is also included for staff to confirm all unique transactions are accurately booked with the City's auditors during annual audit, prior to report issuance. B. Prior Year Findings — Financial Statement No prior year findings were reported. 12 City of Santa Clarita Schedule of Findings and Questioned Costs (Continued) For the Year Ended June 30, 2025 Section III — Federal Award Findings and Questioned Costs A. Current Year Findings and Questioned Costs — Major Federal Award Program Audit No current year findings were reported. B. Prior Year Findings and Questioned Costs — Major Federal Award Program Audit No prior year findings were reported. 13 This page intentionally left blank 14 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Santa Clarita, California Financial Statements and Independent Auditor's Report For the Year Ended June 30, 2025 THE PUN GROUP ACCOUNTANTS & ADVISORS Open Space Preservation District Special Revenue Fund of the City of Santa Clarita For the Year Ended June 30, 2025 Table of Contents Independent Auditor's Reports 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: BalanceSheet.....................................................................................................................................................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 Notes to the Budgetary Comparison Schedule.................................................................................................16 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Open Space Preservation District Special Revenue Fund (the "Fund") of the City of Santa Clarita, California (the "City") as of and for the year ended June 30, 2025, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of June 30, 2025, and the change in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note I 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, 2025, 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. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Supplementary Information Our audit was conducted for the purpose of forming opinion on the Fund's financial statements. The Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual 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. 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 12, 2025, 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 12, 2025 This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor's Report To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( "Government Auditing Standards"), the financial statements of the Open Space Preservation District Special Revenue Fund (the "Fund"), of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, and have issued our report thereon dated December 12, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over the Open Space Preservation District Special Revenue Fund's financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 12, 2025 FINANCIAL STATEMENTS This page intentionally left blank. Cash and investments Receivables: Interest Taxes Total assets Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Balance Sheet June 30, 2025 ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts payable and accrued liabilities Total liabilities Fund Balance: Restricted for Open Space Preservation Total fund balance Total liabilities and fund balance 8,117,857 48,903 43,022 $ 8,209,782 $ 136,527 136,527 8,073,255 8,073,255 $ 8,209,782 See accompanying Notes to the Financial Statements. 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, 2025 Revenues: Special assessments $ 3,395,652 Investment income 439,831 Use of money and property (6,273) Other revenue 58 Total revenues 3,829,268 Expenditures: Current: Open space preservation 1,125,697 Capital outlay 2,145,709 Total expenditures 3,271,406 Excess of revenues over expenditures 557,862 Other Financing (Uses): Transfers to the City Net change in fund balance Fund Balance: Beginning of year End of year (967,639) (409,777) 8,483,032 $ 8,073,255 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, 2025 Note 1— Organization and Summary of Significant Accounting Policies A. Financial Reporting Entity On July 17, 2007, the City of Santa Clarita (the "City") established the Santa Clarita Open Space Preservation District (the "District") pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Street and Highway Code. The purpose of the District is to fund a portion of the City's open space, park and parkland program consisting of the acquisition, preservation, improvement, servicing, financing and maintenance of open -space land, parks and parkland, and appurtenant equipment and facilities, including the payment of debt service, of benefit to the property within the District. Facilities include, but are not limited to, open -space land, parks, parklands, the Santa Clarita River Watershed, trail systems and wildlife corridors. These are financed by special assessments levied on parcels within the City boundaries. The boundaries of the District are the same as the boundaries of the City. The City established the Open Space Preservation District Special Revenue Fund (the "Fund") to account for the activities of the District. The City has title of the constructed assets within the boundaries of the District. Any debt issued for activities of the District are issued in the name of the City. The financial statements were prepared from only the accounts of the Fund and, therefore, do not present the financial position or results of operations of the City and changes in financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America. B. Fund Accounting The Fund's statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Fund is presented as a Special Revenue Fund of the City. The Governmental Accounting Standards Board ("GASB") is the acknowledged standard -setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States. C. Financial Statements Presentation, Basis of Accounting and Measurement Focus Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balance. The Fund is accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in the fund balance. The primary revenue sources are special assessments and interest revenue. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are considered available if they are collected within 90 days of the end of the current fiscal period, except for special assessments, which are within 60 days. Expenditures are recorded in the accounting period in which the related fund liability is incurred. D. Cash and Investments The Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's treasurer is responsible for the cash management of the Fund's cash balance, which pools available cash for investment purposes. The cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturity of three months or less from the date of acquisition. Each City fund owns a share of pooled cash and investments, which are separately maintained, and interest income was apportioned based on its average month -end cash balances to the total of the pooled cash and investments. 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, 2025 Note 1— Organization and Summary of Significant Accounting Policies (Continued) E. Special Assessments Special assessment taxes are attached as enforceable liens on real property on July 1, the beginning of the fiscal year, and are due in two installments on November 1 and February 1; however, no penalties or interest are assessed until December 10 and April 10, respectively. These taxes are determined annually based on property values, subject to limits based on Proposition 13, as of January 1 of the levy year, which is prior to the end of the previous fiscal year. The County of Los Angeles bills and collects these taxes for the District and are remitted on a monthly basis. F. Fund Balance In the Fund's financial statements, fund balance is classified as follows: Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Expenditures as they are incurred are applied against these restricted net resources. G. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates and assumptions. Note 2 — Cash and Investments The Fund's share of the City's pooled cash and investments at June 30, 2025 was in the amount of $8,117,857. Cash is deposited in the City's internal investment pool, which is reported at amortized cost. The Fund does not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for cash and investments. Note 3 — Transfers to Other Funds of the City of Santa Clarita The Fund made transfers to the City's Public Financing Authority Debt Service Fund in the amount of $844,806 for current year debt service payments for the Lease Revenue Bond Series 2016B. As of June 30, 2025, $10,565,000 was outstanding. Revenues from the Fund are pledged for repayment of the bonds, but the City is not obligated to require additional amounts from the Fund in event the revenues of the fund are insufficient for bond repayment. Additional information regarding the Lease Revenue Bond Series 2016B is presented in the City's Annual Comprehensive Financial Report. The Fund also made transfers to the City's General Fund in the amount of $122,833 towards the Fund's share of pension liability payment. 12 SUPPLEMENTARY INFORMATION 13 This page intentionally left blank. 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, 2025 Revenues: Special assessments Investment income Use of money and property Other revenue Total revenues Expenditures: Open space preservation: Operating: Personnel Operations and maintenance Capital outlay Total expenditures Excess of revenues over expenditures Other Financing Uses: Transfers to the City Net change in fund balance Fund Balance: Beginning of year End of year Budget Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 3,356,853 $ 3,356,853 $ 3,395,652 $ 38,799 287,155 287,155 439,831 152,676 85,530 85,530 (6,273) (91,803) - - 58 58 3,729,538 3,729,538 3,829,268 99,730 541,906 532,276 489,948 42,328 535,567 693,083 635,749 57,334 - 3,302,908 2,145,709 1,157,199 1,077,473 4,528,267 3,271,406 1,256,861 2,652,065 (798,729) 557,862 1,356,591 (967,639) (967,639) (967,639) - $ 1,684,426 $ (1,766,368) (409,777) $ 1,356,591 8,483,032 $ 8,073,255 15 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2025 Budgetary Information Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the United States of America for all governmental funds, except that encumbrances are shown in the year incurred for budgetary purposes. On or before the last day in January of each year, all operational units submit requests for appropriations to the City Manager for budget preparation purposes. The proposed budget is presented to the City Council for review. The City Council holds public hearings, and a final budget must be adopted no later than June 30. The appropriated budget is prepared by fund, function, and department at the category level. The City reports the following categories: personnel, operating and capital outlay. Additionally, the City separately prepares a capital improvement projects budget. The budgetary control for the Capital Improvement Program is at the program level. The City's Department Heads, with approval of the City Manager, may make transfers of appropriations within certain line -items within a program, but may not exceed the total appropriated amounts for each category. The City Manager may approve transfers that do not change the total appropriated amount within the fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the category level. The schedule does not present the legal level of budgetary control, which is at the category level. Refer to the Citv's Annual Comprehensive Financial Report for further information. Under encumbrance accounting, purchase orders, contracts, and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are classified as restricted fund balance. Unexpended appropriations lapse at year-end. 16 Transit Enterprise Fund of the City of Santa Clarita Santa Clarita, California Independent Auditor's Reports and Financial Statements For the Year Ended June 30, 2025 THE PUN GROUP Transit Enterprise Fund of the City of Santa Clarita For the Year Ended June 30, 2025 Table of Contents Page Independent Auditor's Reports: Report on the Audit of the Financial Statements...............................................................................................1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................... 5 Financial Statements: Statementof Net Position....................................................................................................................................... 9 Statement of Revenues, Expenses and Changes in Fund Net Position.................................................................10 Statementof Cash Flows.......................................................................................................................................11 Notesto the Financial Statements.........................................................................................................................13 Required Supplementary Information (Unaudited): Schedule of Proportionate Share of the Net Pension Liability and Related Ratios .............................................. 30 Schedule of Contributions — Pensions................................................................................................................... 32 Schedule of Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios.............................................................................................................34 Schedule of Contributions — Other Postemployment Benefits.............................................................................. 36 I This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Transit Enterprise Fund (the "Transit Fund") of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Transit Fund as of June 30, 2025, and the changes in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements present only the Transit Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025, 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. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Proportionate Share of the Net Pension Liability, the Schedule of Contributions — Pensions, the Schedule of Proportionate Share of the Net Other Postemployment Benefits ("OPEB") Liability, and the Schedule 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 financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 12, 2025, 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 12, 2025 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 6 Hutton Centre Drive, Su to 1200 Santa Ana, CaOufornia 92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor's Report To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"), the financial statements of the Transit Enterprise Fund (the "Transit Fund"), of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, and have issued our report thereon dated December 12, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over the Transit Fund's financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 12, 2025 FINANCIAL STATEMENTS This page intentionally left blank. Transit Enterprise Fund of the City of Santa Clarita Statement of Net Position June 30, 2025 ASSETS: Current assets: Pooled cash and investments Interest receivable Due from other governments Prepaid items Total current assets Noncurrent assets: Net other postemployment benefits asset Capital assets: Nondepreciable assets Depreciable assets, net Total capital assets Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES: Pension related Other postemployment benefits related Total deferred outflows of resources LIABILITIES: Current liabilities: Accounts payable Accrued payroll Compensated absences - due within one year Total current liabilities Noncurrent liabilities: Compensated absences - due in more than one year Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES: Pension related Other postemployment benefits related Total deferred inflows of resources NET POSITION: Investment in capital assets Unrestricted Total net position $ 28,106,638 169,318 4,120,319 35,289 32,431,564 142,638 15,487,638 65,535,422 81,023,060 81,165,698 113,597,262 769,582 173,407 942,989 7,070,129 33,346 143,836 7,247,311 77,468 1,363,600 1,441,068 8,688,379 29,708 394,121 423,829 81,023,060 24,404,983 $ 105,428,043 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, 2025 OPERATING REVENUES: Metrolink and EZ pass revenues $ 87,269 Fixed -route passenger fares 1,825,576 Dial -A -Ride passenger fares 91,762 County of Los Angeles operating assistance 1,931,729 Specialized transit services 2,419,822 Miscellaneous revenues 1,247,679 Total operating revenues 7,603,837 OPERATING EXPENSES: Salaries and benefits 1,757,304 Administrative services 1,481,849 Contract transportation services 24,932,555 ETA funded non -capitalized projects 875,983 Insurance 182,694 Supplies, utilities and other 3,105,632 Depreciation 6,849,764 Total operating expenses 39,185,781 OPERATING (LOSS) (31,581,944) NONOPERATING REVENUES: Proposition A Discretionary 4,491,505 Proposition A Specialized Transportation 1,465,155 Proposition C Expansion 228,045 Proposition C BSIP 59,193 Proposition C Transit Mitigation 29,082 Proposition C Security Allocation 391,612 Measure R Bus Operations 2,345,362 Measure M Bus Operations 2,336,279 SB1 State Transportation Assistance 853,867 CARES Act 11,729,461 Investment income 1,285,375 Gain on sale of capital assets 59,419 Total nonoperating revenues 25,274,355 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (6,307,589) CAPITAL CONTRIBUTIONS: Federal Transit Administration capital grants 3,840,460 Proposition C MOSIP 229,588 Measure M Regional 158,934 Total contributions 4,228,982 TRANSFERS: Transfers in from the City 5,000,000 Transfers out to the City (867,272) Total transfers 4,132,728 Change in net position 2,054,121 NET POSITION: Beginning of year, as previously reported 103,463,088 Change in accounting principle (89,166) Beginning of year, as restated (Note 10) 103,373,922 End of year $ 105,428,043 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, 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers and users Cash payments to suppliers for goods and services Cash payments to employees Net cash (used in) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out to the City Transfers in from the City Federal and state funding received Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital contributions received Acquisition of capital assets Proceeds from sale of capital assets Net cash provided by capital and related fmancing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Net cash provided by investing activities Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year End of year RECONCILIATION OF OPERATING (LOSS) TO NET CASH (USED IN) OPERATING ACTIVITIES: Operating (loss) Adjustments to reconcile operating (loss) to net cash (used in) operating activities: Depreciation Changes in operating assets, deferred outflows of resources, liabilities, and deferred inflows of resources: (Increase) decrease in accounts receivable (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase (decrease) in accrued payroll Increase (decrease) in compensated absences Increase (decrease) in pension and pension related deferred outflows and inflows of resources Increase (decrease) in OPEB and OPEB related deferred outflows and inflows of resources Net cash (used in) operating activities $ 7,616,503 (27,751,700) (1,733,823) (21,869,020) (867,272) 5,000,000 22,464,528 26,597,256 4,228,982 (3,338,479) 59,419 949,922 1,210,192 1,210,192 6,888,350 21,218,288 $ 28,106,638 $ (31,581,944) 6,849,764 12,666 (20,430) 2,758,277 3,470 13,819 161,333 (65,975) $ (21,869,020) See accompanying Notes to the Financial Statements. 11 This page intentionally left blank. 12 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements For the Year Ended June 30, 2025 Note 1— Summary of Significant Accounting Policies A. Description of the Financial Reporting Entity The financial statements of the Transit Enterprise Fund (the "Transit Fund") of the City of Santa Clarita, California (the "City") are intended to present the financial position and results of the bus line services operation. The financial statements of the Transit Fund are included as a business -type (enterprise fund) activity in the basic financial statements of the City. The financial statements were prepared from only the accounts of the Fund. Accordingly, the financial statements do not purport to, and do not, present fairly the financial position of the City and changes in financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America. B. Measurement Focus, Basis of Accounting and Financial Statements Presentation The accounting policies of the Fund are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to proprietary activities of governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard -setting body for establishing accounting and financial reporting principles. The financial statements of the Transit Fund include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows. The financial statements are prepared using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses, and changes in fund net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recorded in the period in which the liability is incurred. Operating revenues and expenses result from the operating and maintenance of the local public transit services. The operating revenues consist of 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 The Transit Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's treasury is responsible for the cash management of the Transit Fund's cash balance. Cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition, and the Transit Fund's participation in the City investment pool are considered to be cash and cash equivalents. Each City fund owns a share of pooled cash and investments and interest income was apportioned based on its average month -end cash balances in proportion to the total of the pooled cash and investments. 13 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 1— Summary of Significant Accounting Policies (Continued) D. Grants Grant revenues and receivables are recorded when earned on grants that have been approved and funded by the grantor, and when eligibility requirements for the grant have been met. Grant sources include Federal Transit Administration, State of California, and Los Angeles Metropolitan Transportation Authority. E. Administrative Services Service costs include contractual, professional, and legal services. F. Prepaids Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements. G. Capital Assets Capital assets include land, site improvements, buildings and improvements, and vehicles and equipment. Capital assets are defined by the City as assets with an initial cost of more than $10,000 ($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: Assets Years Site improvements 5 to 50 Building and improvements 5 to 50 Equipment 5 to 25 H. Deferred Outflows and Inflows of Resources The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent a consumption of net 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 ofResources 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. L Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and comp time (compensated absences). This accumulation is recorded as an expense and liability of the Transit Fund in the fiscal year earned. The outstanding balance as of June 30, 2025 was $221,304, of which, $143,836 was considered due within one year, and $77,488 was considered due in more than one year. 14 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 1— Summary of Significant Accounting Policies (Continued) J. Pensions The Transit Fund reports a proportion of the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, of the collective net pension liability of the City of Santa Clarita. All amounts and disclosures are presented on a cost -sharing perspective where the Transit Fund is a participant in the City's plan. For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the California Public Employees Retirement System (Ca1PERS) plan and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by CAPERS. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date: June 30, 2023 Measurement Date: June 30, 2024 Measurement Period: July 1, 2023 to June 30, 2024 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. K. Other Post -Employment Benefits ("OPEB') For purposes of measuring the net OPEB asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 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, 2024 Measurement Date: June 30, 2025 Measurement Period: July 1, 2024 to June 30, 2025 15 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 1— Summary of Significant Accounting Policies (Continued) K. Other Post -Employment Benefits ("OPEB') (Continued) 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 —This component of net position consists of capital assets, net of accumulated depreciation. Unrestricted — This amount represents the residual of amounts not classified in investment in capital assets and represents the net position available for the Transit Fund. When an expense is incurred for purposes for which both restricted and unrestricted resources are available, the Transit Fund's policy is to apply restricted resources first. 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. N. Implementation of New Pronouncements Effective in the current fiscal year: GASB Statement No. 101 — In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Implementation of this Statement resulted in a restatement of the beginning net position as of July 1, 2024, as presented in Note 10. 16 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 2 — Cash and Cash Equivalent The Transit Fund's share of the City's cash and investment at June 30, 2025 was in the amount of $28,106,638. Cash is deposited in the City's internal investment pool, which is reported at amortized cost. The Transit Fund does not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Transit Fund are those of the City and are included in the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for cash and investments. Note 3 — Due From Other Governments Due from other governments consists of the following at June 30, 2025: Agency Amount Los Angeles County $ 1,369,815 Federal Government 344,758 Federal Transit Administrator 1,538,230 Other Agencies 867,516 Total $ 4,120,319 Due from other governments relate to various program support revenues received from other governments in support of transit operations and programs. Note 4 — Capital Assets Changes in capital assets of the Fund at June 30, 2025, consisted of the following: Capital assets, not being depreciated: Land and right of way Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Site improvement Building improvements Equipment Total capital assets, being depreciated Less accumulated depreciation for: Site improvement Building improvements Equipment Total accumulated depreciation Total capital assets, being depreciated, net Total capital assets, net Balance Balance July 1, 2024 Additions Deletions June 30, 2025 $ 15,087,880 $ - $ - $ 15,087,880 233,090 166,668 399,758 15,320,970 166,668 15,487,638 21,361,242 121,650 21,482,892 46,675,637 - 46,675,637 70,768,181 3,050,161 (4,500,279) 69,318,063 138,805,060 3,171,811 (4,500,279) 137,476,592 (7,374,139) (887,050) (8,261,189) (18,461,203) (1,024,103) - (19,485,306) (43,756,343) (4,938,611) 4,500,279 (44,194,675) (69,591,685) (6,849,764) 4,500,279 (71,941,170) 69,213,375 (3,677,953) - 65,535,422 $ 84,534,345 $ (3,511,285) $ - $ 81,023,060 17 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 5 — Pension Plan A. General Information about the Pension Plan Plan Description All qualified permanent, probationary, and some PTS employees are eligible to participate in the City's Miscellaneous Pension Plan, an agent multiple -employer defined benefit pension plan administered by the California Public Employees' Retirement System (CAPERS), which acts as a common investment and administrative agent for its participating member employers. The employees are participants in the Miscellaneous Plan of the City. For financial reporting purposes, the Transit Fund reports a proportionate share of the City's collective net pension liability, pension expense, and deferred inflows and outflows of resources. Accordingly, the disclosures and required supplementary information have been reported for the Transit Fund as a cost sharing participant. Benefit provisions under the Plan are established by State statute and City resolution. Ca1PERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CAPERS website. The Plan's provisions and benefits in effect at June 30, 2025, are summarized as follows: Miscellaneous Tier 1 Tier 2 Tier 3 Benefit formula 2.7% @ 55 2% @ 60 2% @ 62 Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-60 52-62 Required employee contribution rates 8.000% 7.000% 7.250% Required employer contribution during measurement period 9.820% 9.820% 9.820% Applies to: Employees hired Employees hired between Employees hired before April 9, 2011 * April 9, 2011 and January 1, 2013 or December 31, 2012 or later those hired January 1, 2013, or later, who have been a classic CaIPERS 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 Section 20814(c) of the California Public Employees' Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CAPERS. 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. Contributions made to pension plan by the Transit Fund for the year ended June 30, 2025 were $272,765. 18 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 5 — Pension Plan (Continued) 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 Liab The June 30, 2023 valuation for the City's Miscellaneous Plan was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rates Inflation Salary Increases Mortality Rate Table Post Retirement Benefit Increase Entry Age Normal 6.90% 2.300% Varies by Entry Age and Service Derived using Ca1PERS'S Membership Data for all Funds. The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter. 1 The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CAPERS 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. For more details on this table, please refer to the CAPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website. Changgo f Assumption There were no assumption changes in 2024. 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, CAPERS 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. 19 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 5 — Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Long -Term Expected Rate of Return (Continued) The expected real rates of return by asset class are as follows: Asset Class' Assumed Asset Allocation Real Return"' Global Equity Cap -weighted 30.00% 4.54% Global Equity Non -cap -weighted 12.00% 3.84% Private Equity 13.00% 7.28% Private Debt 5.00% 3.57% Emerging Market Sovereign Bonds 5.00% 2.48% High Yield Bonds 5.00% 2.27% Investment Grade Corporates 10.00% 1.56% Mortgage -backed Securities 5.00% 0.50% Treasuries 5.00% 0.27% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 100.00% An expected inflation of 2.30% used for this period. 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 contribution rate and that the employer's contributions will be made at statutorily required rates, actuarially determined. Based on those assumptions, each pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Proportionate Share ofNet Pension Liability and Pension Expense The following table shows the Transit Fund's proportionate share of the risk pool collective net pension liability over the measurement period: Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) _ (a) - (b) Balance at June 30, 2023 (Valuation Date) $ 10,015,303 $ 8,532,708 $ 1,482,595 Balance at June 30, 2024 (Measurement Date) 10,802,387 9,438,787 1,363,600 Net changes during2023-24 $ 787,084 $ 906,079 $ (118,995) 20 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 5 — Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The Transit Fund's proportion of the net pension liability (asset) was based on actual contributions paid by the Transit Fund in relation to the total City's contribution paid for the Miscellaneous Plan, as determined by the City. The Transit Fund's proportion of the net pension liability was as follows: Measurement Date June 30, 2023 June 30, 2024 3.51435% 3.51435% Change - Increase (Decrease) 0.00000% Sensitivity of the Transit Fund's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Transit Fund's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Transit Fund's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Plan's Net Pension Liability/(Asset) Discount Rate Current Discount Discount Rate Measurement Date-1%(5.90%) Rate (6.90%) + 1%(7.900/6) June 30, 2023 $ 2,995,651 $ 1,363,600 $ 35,761 Pension Plan Fiduciary Net Position Detail information about the plan's fiduciary net position is available in the separately issued Ca1PERS financial report and can be obtained from CAPERS' website under Forms and Publications. Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2025, the Transit Fund recognized pension expense of $434,192. At measurement date June 30, 2024, the Transit Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after the measurement date $ 272,765 $ Difference between expected and actual experience 238,523 (29,708) Changes in assumption 127,381 Net difference between projected and actual earning on pension plan investments 130,913 Total $ 769,582 $ (29,708) 21 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 5 — Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Pension Expense and Deferred Outflows and Inflows of Resources (Continued) The expected average remaining service lifetime (" EARSU) 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 2023-24 measurement period is 4.4 years, which was obtained by dividing the total service years of 5,887 (the sum of remaining service lifetimes of the active employees) by 1,338 (the total number of participants: active, inactive, and retired). $272,765 deferred outflows of resources related to pensions resulting from the Transit Fund's contributions made subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2026. 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 2025 $ 145,477 2026 324,955 2027 24,280 2028 (27,603) $ 467,109 Note 6 — Other Post -Employment Benefits ("OPEB") A. General Information about the OPEB Plan Plan Description The City has elected through resolution to provide healthcare benefits as a single employer plan to retirees, spouses, and eligible dependents of the City. This plan provides post -employment medical insurance benefits through the CAPERS Health Plan (the "Plan"). Accordingly, all amounts and disclosures are presented on a cost -sharing perspective where the Transit Fund is a participant in the City's plan. Additional details are provided on the plan within the City's ACFR. 22 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) A. General Information about the OPEB Plan (Continued) Benefits Provided At retirement, the City contributes a flat monthly rate of $158 for those employees who retire under the PERS retirement system, subscribe to the PERS Health Insurance System, and have at least five years of Ca1PERS 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 $1,271 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 $1,271 per month. 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 S e rvice 0 to 4 years 5 to 9 years 10 to 14 years 15 years and greater Funding Polley Vested Percentage 0% 50% 75% 100% Please refer to the City's Annual Comprehensive Financial Report for details related to the funding policy. Contrihutionv 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, 2025, the Transit Funds proportionate share of cash contribution was $0 to the Plan and the estimated implied subsidy was in the amount of $8,616, resulting in total contribution of $8,616. 23 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Actuarial Assumptions The total OPEB liability in the June 30, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Cost Method Actuarial Assumptions: Actuarial Valuation Date Contribution Policy Discount Rate and Long -Tenn Expected Rate of Return Inflation Mortality, Retirement, Disability, Termination Mortality Improvement Salary Increases Medical Trend PEMHCA Minimum Increases Participation at Retirement Waived Retirees Reelection Cap Increase Changes ofAssumptions There were no assumption changes in 2025. Entry Age Normal June 30, 2024 Pre -fund cash benefit ADC with PARS Balanced Fund Implied subsidy benefit on pay-as-you-go basis 6.00% at June 30, 2025 and June 30, 2024 Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust 2.50% annually CaIPERS 2000-2019 Experience Study Post -retirement mortality projected fully generational with Scale MP-2021 Aggregate - 2.75% annually Non -Medicare - 7.90% for 20266, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non -Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076 3.50% annually Hired < 1/l/08 - 95% Hired> 1/l/08 - 60% 5% re-elect at 65 Medical trend for EE+1 cap 24 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Long -Term Expected Rate o Return The long-term expected rate of return on plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The long-term expected real rates of return are presented as geometric means. The target asset allocation and most recent best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Expected Real Global Equity 60.00% 4.56% Fixed Income 35.00% 0.78% Cash 5.00% -0.50% 100.00% Assumed Long -Term Rate of Inflation 2.50% Expected Long -Term Net Rate of Return, Rounded 6.00% Discount Rate The discount rates used to measure the total OPEB liability was 6.00%. Proportionate Share of Net OPEB Liability The following table shows the Fund's proportionate share of the net OPEB liability (asset) over the measurement period: Increase (Decrease) Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/(Asset) (a) (b) (c) = (a) - (b) Balance at June 30, 2024 $ 1,042,233 $ 1,225,350 $ (183,117) Balance at June 30, 2025 (Measurement Date) 1,171,450 1,314,088 (142,638) Net changes during2024-25 $ 129,217 $ 88,738 $ 40,479 The Transit Fund's proportion of the net OPEB asset was based on actual contributions paid by the Transit Fund in relation to the total City's contributions to the OPEB plan, as determined by the City. The Transit Fund's proportion of the net OPEB asset was as follows: Measurement Date June 30, 2024 June 30, 2025 Change - Increase (Decrease) 2.40% 2.40% 0.00% 25 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Sensitivity of the Transit Fund's Proportionate Share of the Net OPEB Asset to Changes in the Discount Rate The following presents the Transit Fund's proportionate share of the net OPEB liability if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Plan's Net OPEB Liability/(Asset) Discount Rate Current Discount Discount Rate Measurement Date - 1%'(5%) Rate (61/6) + 1%(7%) June 30, 2025 $ 10,287 $ (142,638) $ (269,922) The following presents the Transit Fund's proportionate share of the net OPEB asset, as well as what the Transit Fund's proportionate share of the net OPEB asset would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates, for measurement period ended June 30, 2025: Plan's Net OPEB Liability/(Asset) Measurement Date 1%Decrease Current Trend 1%Increase June 30, 2025 $ (291,423) $ (142,638) $ 39,171 OPEB Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the City's ACFR. OPEB Expenses and Deferred Outflows and Inflows of Resources For the measurement period ended June 30, 2025, the Transit Fund reported OPEB credit in the amount of ($57,359). At June 30, 2025, the Fund 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 Difference between expected and actual experience $ 81,223 $ (155,627) Changes of assumptions 92,184 (187,076) Net difference between projected and actual earnings on plan investments - (51,418) Total $ 173,407 $ (394,121) 26 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) OPEB Expenses and Deferred Outflows and Inflows of Resources (Continued) Deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Deferred Outflows/ (Inflows) of Resources Year Ending June 30, OPEB Plan 2026 $ (29,660) 2027 (79,205) 2028 (59,224) 2029 (67,150) 2030 (8,866) Thereafter 23,391 $ (220,714) Note 7 — Compensated Absences Changes in compensated absences of the Fund at June 30, 2025, consisted of the following: Balance July 1, 2024 Balance Due within Due in More (As restated) Additions Deletions June 30, 2025 One Year Than One Year Compensated absences* $ 207,485 $ 13,819 $ - $ 221,304 $ 143,836 $ 77,468 * Shown as net change during the year. Note 8 — Administrative and Personnel Costs Certain general and administrative costs are allocated to the Transit Fund based upon an approved cost allocation plan. Such allocated costs in the amount of $3,239,153 were reported as salaries and benefits and administrative services expenses for the year ended June 30, 2025. Note 9 — Transfers from/to the City of Santa Clarita During the year ended June 30, 2025, the Transit Fund transferred $867,272 to the City of Santa Clarita, $150,000 was mainly to support the senior center transit operations, $696,550 for the proportional share of Metrolink station maintenance, $3,690 for the cost of sweeping at the Metrolink stations, and $17,032 for the maintenance at Vista Canyon Transit Center. The transfer of $5,000,000 from the Proposition A Special Revenue Fund was to contribute toward the funding of the Vista Canyon Metrolink Station. 27 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2025 Note 10 — Restatement The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly. As of July 1, 2024, the beginning net position of the Transit Fund was adjusted to reflect the effect of the change. June 30, 2024 Change in As Previously Accounting Reported Principle Net Position $ 103,463,088 $ (89,166) June 30, 2024 As Restated 103,373,922 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, 2025 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Measurement Date Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability (Asset) Covered Payroll Proportionate Share of the Net Pension Liability as a Percentage of the Covered Payroll Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability Notes to Schedule: June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 3.51435% 3.51435% 3.51435% 3.51435% 3.51435% $ 1,363,600 $ 1,482,595 $ 1,363,159 $ (15,215) $ 1,220,809 $ 1,377,375 $ 1,313,733 $ 1,277,951 $ 1,255,802 $ 1,196,042 99.00% 107.64% 106.67% -1.21% 99.59% 87.38% 85.20% 85.38% 100.18% 84.69% Changes of Assumptions: There were no assumption changes in 2024 and 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CAPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CAPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 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, 2025 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") (Continued) Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the Net Pension Liability 3.51435% 3.51435% 3.51435% 3.51419% 3.51419% Proportionate Share of the Net Pension Liability $ 1,367,413 $ 1,468,640 $ 1,641,432 $ 1,388,588 $ 1,084,341 Covered Payroll $ 1,109,265 $ 1,030,631 $ 1,017,646 $ 1,004,503 $ 957,079 Proportionate Share of the Net Pension Liability as a Percentage of Its Covered Payroll 116.50% 139.46% 156.03% 141.45% 113.30% Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 81.56% 78.57% 74.42% 75.27% 79.11% 31 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2025 Fiscal Year Actuarially determined contribution Contributions in relation to the Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") 2024-25 2023-24 2022-23 2021-22 2020-21 $ 202,478 $ 269,240 $ 250,337 $ 228,804 $ 217,547 actuarially determined contribution' (272,765) (339,527) (320,601) (297,419) (394,284) Contribution deficiency (excess) $ (70,287) $ (70,287) $ (70,264) $ (68,615) $ (176,737) Covered Payroll $ 1,496,753 $ 1,377,375 $ 1,313,733 $ 1,277,951 $ 1,255,802 Contributions as a percentage of covered payroll 18.22% 19.80% 24.40% 23.27% 31.40% ' Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 2 Covered payroll represented above includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 and 2023; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017. Notes to Schedule: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2022 funding valuation report. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Value Assets. For details, see June 30, 2022 Funding Valuation Report. Inflation 2.30% Salary increases Varies by entry age and service Payroll Growth 2.80% Investment rate of return 6.80% net of pension plan investment and administrative expenses; includes Inflation. Retirement age The probabilities of retirement are based on the 2021 CaIPERS Experience study for the period from 2001 to 2019. Mortality 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. 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, 2025 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") (Continued) Fiscal Year 2019-20 2018-19 2017-18 2016-17 2015-16 Actuarially determined contribution Contributions in relation to the actuarially determined contribution' Contribution deficiency (excess) Covered Payrolf Contributions as a percentage of covered payroll $ 222,244 $ 198,133 $ 163,846 $ 157,589 $ 139,123 (561,483) (439,293) (339,563) $ (157,589) (139,129) $ (339,239) $ (241,160) $ (175,717) $ - $ (6) $ 1,196,042 $ 1,109,265 $ 1,030,631 $ 1,017,646 $ 1,004,503 46.95% 39.60% 32.95% 15.49% 13.85% 33 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, 2025 Measurement Date Proportion of the Net OPEB Liability Proportionate Share of the Net OPEB Liability (Asset) Covered -employee payroll Proportionate share of the net OPEB liability as a percentage of its covered -employee payroll Proportionate Share of the Fiduciary Net Position as a percentage of the total OPEB Liability Last Ten Fiscal Years Retiree Healthcare Plan June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 2.40% 2.40% 2.40% 2.40% 2.40% $ (142,638) $ (183,117) $ (123,020) $ (49,718) $ (301,813) $ 1,189,135 $ 1,117,759 $ 1,093,980 $ 993,256 $ 855,299 -12.00% -16.38% -11.25% -5.01% -35.29% 112.18% 117.60% 112.30% 104.90% 131.67% 1 Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18. 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 (Continued) For the Year Ended June 30, 2025 Measurement Date Proportion of the Net OPEB Liability Proportionate Share of the Net OPEB Liability (Asset) Covered -employee payroll Proportionate share of the net OPEB liability as a percentage of its covered -employee payroll Proportionate Share of the Fiduciary Net Position as a percentage of the total OPEB Liability Last Ten Fiscal Years Retiree Healthcare Plan (Continued) June 30, 2020 June 30, 2019 June 30, 2018' 2.40% 2.40% 2.40% $ 400,077 $ 146,648 $ 247,416 $ 919,082 $ 813,498 $ 735,216 43.53% 18.03% 33.65% 71.67% 87.12% 79.08% 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, 2025 Last Ten Fiscal Years Retiree Healthcare Plan Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21 Actuarially determined contribution $ 11,904 $ 6,552 $ 5,568 $ 11,568 $ 12,408 Contributions in relation to the actuarially determined contribution 8,616 6,672 6,073 7,224 15,312 Contribution deficiency (excess) $ 3,288 $ (120) $ (505) $ 4,344 $ (2,904) Covered -employee payroll $ 1,189,135 $ 1,117,759 $ 1,093,980 $ 993,256 $ 855,299 Contributions as a percentage of covered -employee payroll 0.72% 0.60% 0.56% 0.73% 1.79% Notes to Schedule: I Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18. Methods and assumptions used to determine contribution rates: Contribution valuation date June 30, 2024 Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method Level percentage of payroll Remaining amortization period Approximately 7.5 years remaining for 2024/25 Asset valuation method Fair Value Discount rate 6.00% General inflation 2.50% Medical trend Non -Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non -Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076. Mortality CAPERS 2000-2019 Experience Study. Mortality improvement Mortality projected fully generational with Scale MP-2021. 36 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2025 Fiscal Year Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered -employee payroll Contributions as a percentage of covered -employee payroll Last Ten Fiscal Years Retiree Healthcare Plan (Continued) 2019-20 2018-19 2017-18' 26,688 $ 27,048 $ 42,120 15,264 22,159 29,448 $ 11,424 $ 4,889 $ 12,672 $ 919,082 $ 813,498 $ 735,216 1.66% 2.72% 4.01% 37 This page intentionally left blank. 38