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1996-03-26 - AGENDA REPORTS - ANNUAL FIN RPT MGMT LETTER (2)
J AGENDA REPORT City Manager Approval Item to be presented by: Steve Stark //A CKOWRIDROIK\11 197;11 DATE: March 26, 1996 SUBJECT: 6-30-95 Comprehensive Annual Financial Report and Management Letter DEPARTMENT: Administrative Services BACKGROUND The City's independent audit firm, Diehl, Evans and Company, has completed the City's annual audit for fiscal year ending June 30, 1995. Diehl, Evans and Company conducted the audit in accordance with generally accepted auditing standards whereby an audit plan was prepared and followed to obtain reasonable assurance that the City's financial statements were free from material misstatements. The Audit included an examination, on a test basis, of evidence supporting the amounts and disclosures in the financial statements. The audit also included assessing the accounting principles used and significant estimates made by managementas well as evaluating the overall general purpose financial statement presentation. Based on the audit performed, Diehl, Evans and Company issued an unqualified audit opinion letter which reflects the best level of opinion an organization can receive on its financial statements. This letter is identified as the "Independent Auditors' Report" in the City's Comprehensive Annual Financial Report for FYE 6-30-95. An excerpt of the letter is shown as Attachment 1. As part of the audit engagement, Diehl, Evans and Company prepared a management Letter (Attachment 2) to comment on the City's internal control structure and its operations. The purpose of this letter is to make recommendations for management to implement procedures to improve systems in place or note weaknesses in internal controls. For FYE 6-30-95, there were no significant material weakness comments by the auditors. Diehl, Evans and company has incorporated the City's response into their recommendations and comments. 1. Receive oral presentation from Diehl, Evans and Company covering City's financial audit and internal control structure and its operation. 2. Receive Comprehensive Annual Financial Report and Management Letter for FYE 6-30-95. - 6-30-95 Comprehensive Annual Financial Report - Available in the City Clerk's reading file - Attachment 1 - Audit Opinion Letter dated September 29, 1995 - Attachment 2 - Management Letter for FYE 6-30-95 s:AfinAapril\agenda.rpt R Prt �� � �" �� s, J Benda Item: :f J` �o i O A ®DiEHL,EvANS &CoMPANY CERTIFIED MMUC ACCOI.T'TANTS. .4 PARIM1FASHIP Na11DrvG KCC4MAWl'CORPOR4TIOV5 RODNEY K. MCDSNIEL. CPA MICHAEL R-LUDIN.. CPA CRAIG W. STRAKER. CPA PHILIP H. HOLTKAMP. CPA THOMAS M- PERLOW SKI. CPA HARVEY 1 SCHROEDER. CPA 18401 VON KARMAN AVE.. SUITE 200 IRVINE, CALIFORNIA 92715.1542 September 29, 1995 PHONE (714) 757.7700 FAX (714) 757.2705 INDEPENDENT AUDITORS' REPORT City Council City of Santa Clarita Santa Clarita, California We have audited the general purpose financial statements of the City of Santa Clarita, California as " of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also A includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Santa Clarita as of June 30, 1995 and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The financial statements of the combining individual funds and account group statements and schedules listed in the table of contents under supplementary information are presented _y for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Santa Clarita. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. The statistical information listed in the table of contents is not, a required part of the basic financial statements, and we did not audit or apply limited procedures to such information and do not express any assurance on such information. OTHER OFFICES AT: 2955 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SURE 330 CARRLSBAD. CA 92f06239 ESCONDIDO. CA 920253598 (6191729-2343 (619)74P3141 FAX 16191 7292234 FAX (6191 74198A' DIEHL,EUANS VLVOWAl Y l CERTIFIED RL.RUC. OCOCTTAM'S RVIT.VERSHIP ACIX TAV Q)OR ATIONI 18401 VON KARMAN AVE., SUITE 200 IRVINE. CALIFORNIA 92715.1542 PHONE (714) 7577700 FAX (714)757-2707 City Council City of Santa Clarita Santa Clarita, California September 29, 1995 RODNEYK WDANIEL.CG MICHAEL R. LUDry CPA CRAIG W. SPEAKER CRA. PHILIP11. HOLT A.MRCPA THOMASM. PERLOWSKI. CPA HARVEY [. SCHROEDE.R. CPA In planning and performing our audit of the general purpose financial statements of the City of Santa Clarita for the year ended June 30, 1995, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole and we do not express such an opinion. The management of the City of Santa Clarita is responsible for establishing and maintaining a system of internal accounting control. In: fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly. During our audit, we noted certain matters involving the internal control structure and its operation that we wish to call to your attention. These matters are set forth below, together with our recommendations for improvement. GRANT ACCOUNTING Auditor comment and recommendation: During our audit we noted that year-end reconciliations of grant receipts and disbursements for the Federal Emergency Management Agency grant projects were incomplete. Cash receipts passed through the Office of Emergency Services were not properly applied to the related expenditures so as to determine the correct grant revenue, grant receivable, deferred revenue and accounts payable balances. To ensure compliance with grant requirements and accurate recordkeeping, we recommend that cash receipts be matched to grant disbursements on a project by project basis periodically throughout the year. Management response: Subsequent to the fiscal year-end the City has updated all schedules to compare cash receipts with related expenditures so as to determine the correct grant revenue, grant receivable, deferred revenue and accounts payable balances. Cash receipts are being matched to grant disbursements on a project by project basis periodically throughout the year. OTHER OFFICES AT: _- M1J KOO;EVELT STREET 611111. VALLEY PARKWAY. SUITE 1k I-ARLSMD. C14!ptl'L W9 E`:(.UNWIO. CA v!JlS ti9tl 16191]79.!41 WI91741, II❑ RAN 16191JM 4 FAX (6191 711.989: DEPOSIT ACCOUNTING Auditor comment and recommendation: During our testing of refundable deposits held by the City, we noted the deposit account has not been actively researched to reduce its balance. We recommend that the deposit account be reviewed periodically to assure its balance remains current. Management response: Subsequent to fiscal year-end, the City actively researched these deposits. As a result, several were refunded during fiscal year 1995-96. The deposit account is now being reviewed periodically to assure its balance remains current. These conditions were considered in determining the nature, timing and extent of the audit tests to be applied in our audit of the City of Santa Clarita general purpose financial statements and this letter does not affect our report on these general purpose financial statements dated September 29, 1995. This letter is intended solely for the information and use of the City Council and management. We wish to thank the accounting department staff of the City of Santa Clarita for their cooperation and assistance to our staff during our audit. If we can be of further assistance in clarifying any of the above points, please do not hesitate to contact us. Dt,AA, 6.a4,,,z avid 16j`tt -2- Comprehensive Annual Financial Report June 30, 1995 RECEIVED AND MADE A PART OF THE RECORD AT - MEETING ITEM NO. c4 ShmrA of K v 'y ±.,. QfO 5 CECFMBe&TM C A L I F O R N I A •o �W M tr City of Santa Clarita Comprehensive Annual Financial Report' Prepan Steve Stark, Director so NO raw �� 1 U CITY OF SANTA CLARITA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS June 30, 1995 INTRODUCTORY SECTION: Page Number Table of Contents 1 Letter of Transmittal iv GFOA Certificate of Achievement for Excellence in Financial Reporting xvii CSMFO Certificate of Award for Outstanding Financial Reporting xviii Officials of the City of Santa Clarita xix Organizational Chart xx Map of the City xxi FINANCIAL SECTION: Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 2 - 3 Combined Statements of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Fund 4 - 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue Funds, Debt Service Funds and All Budgeted Capital Project Funds 6 - 9 Combined Statement of Revenues, Expenses and Changes in Retained' Earnings - All Proprietary Fund Types 10 Combined Statement of Cash Flows - All Proprietary Fund Types 11 Notes to Financial Statements 12-39 Supplementary Information: General Fund: Comparative Balance Sheet 40 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 41 CITY OF SANTA CLARITA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (CONTINUED) June 30, 1995 Page Supplementary Information (Continued): lm Special Revenue Funds: Combining Balance Sheet 42-45 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 46-49 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Special Revenue Funds 50-57 Debt Service Funds: Combining Balance Sheet 58 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 60-61 Capital Project Funds: Combining Balance Sheet 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - All Budgeted Capital Project Funds 64-65 Transit Enterprise Fund: Comparative Balance Sheet 66 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings 67 Comparative Statement of Cash Flows 68 Internal Service Funds: Combining Balance Sheet 69 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 70 Combining Statement of Cash Flows 71 CITY OF SANTA CLARITA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (CONTINUED) June 30, 1995 Page Number Supplementary Information (Continued): Fiduciary Fund Types Trust and Agency Funds: Combining Balance Sheet 72 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance - Expendable Trust Fund 73 Statement of Changes in Assets and Liabilities - All Agency Funds 74 Account Groups: General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets by Source 75 Schedule of General Fixed Assets by Function and Activity 76 Schedule of Changes in General Fixed Assets by Function and Activity 77 General Long -Term Debt Account Group: Comparative Schedule of General Long -Term Debt 78 STATISTICAL SECTION: General Governmental Revenues by Source 79 General Governmental Expenditures by Function 80 Assessed and Estimated Actual Values of All Taxable City Property 81 Scheduled of Direct and Overlapping Bonded Debt 82 Schedule of Legal Debt Margin 83 Property Tax Levies and Tax Collections 84 Insurance in Force 85 Demographic Statistics 87 Principal Taxpayers and Major Employers 88 Property Value, Constructions, and Bank Deposits 89 Property Tax Rates - All Overlapping Governments 90 Miscellaneous Statistics 91 iii 0 v 0 0 0 23920 Valencia Blvd, Suite 300 Santa Clarita California 91355-2196 City of Santa Clarita November 30, 1995 Phone (805) 259-2489 Fax (805)259-8125 Honorable Mayor and Members of the City Council of the City of Santa Clarita, California To: City Manager It is a pleasure to submit for your information the Comprehensive Annual Financial Report of the City of Santa Clarita for the fiscal year ended June 30, 1995. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City's management. To the best of our knowledge and belief; the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Organization of This Report The Comprehensive Annual Financial Report is prepared in accordance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB) and includes the report of the independent public accounting firm of Diehl, Evans & Company. Organization of the financial report follows the guidelines set forth by the Government Finance Officers Association of the United States and Canada (GFOA) and the California Society of Municipal Finance Officers (CSMFO). A Certificate of Achievement for Excellence in Financial Reporting is presented by the GFOA and a Certificate of Award for Outstanding Financial Reporting by the CSMFO to those entities whose comprehensive annual financial reports are judged to substantially conform to program standards. In order - to receive the awards, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report that conforms to program standards. Such a report must satisfy both generally accepted accounting principles and applicable legal requirements. The City of Santa Clarita received both awards for the last six years' financial reports and, in my opinion, the accompanying financial report conforms to the high standards of public financial reporting and will again this year be submitted to both award programs for review. PRINTED ON RECYCLED PAPER In accordance with the above-mentioned guidelines, the Comprehensive Annual Financial report is divided into three sections: I. Introductory Section Letter of transmittal GFOA Certificate of Achievement for Excellence in Financial Reporting CSMFO Certificate of Award for Outstanding Financial Reporting Officials of the City of Santa Clarita City organization chart II. Financial Section Independent auditors' report General purpose financial statements Notes to general purpose financial statements Supplemental financial statements and schedules IM Statistical Section Pertinent financial and nonfinancial data that presents historical trends and facts about the City The Financial Section of this report has been structured so as to represent a "reporting pyramid." The significance of the levels of this pyramid are as follows: General Purpose Financial Statements - This level includes the Independent Auditors' Report, the General Purpose Financial Statements, and Notes thereto. The Combined Financial Statements provide a summary of the City's financial position at June 30, 1995, and the results of its operations and cash flows for its proprietary funds, for the period then ended, by fund type or account group. Combining, Individual Fund and Account Group Statements and Schedules - Also presented are separate sections for the various financial statements and schedules for each fund type. They reflect financial data on each generic fund type with separate columns for each individual fund. Each separate column serves as a financial statement for that particular fund, and combining financial statements are presented in each instance where the City has more than one fund of a given fund type. v 0 0 0 0 0 O O O G C7 G O O O 0 O The City's accounting records for general operations are maintained on the modified accrual basis of accounting. The revenues are recorded when measurable and available, and expenditures, except for accrued interest on long-term debt, which is recorded when due, are recorded when the liability is incurred. The City's Accounting System and Budgetary Control In evaluating the City's accounting system needs, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: 1) the safeguarding of assets against loss from unauthorized use or disposition; and 2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: 1) the cost of a specific control feature should not exceed the benefits likely to be derived; and 2) the evaluation of costs and benefits requires estimates and judgments by management. All evaluation of the City's system of internal control will continue to occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The City of Santa Clarita maintains budgetary controls. The objective of these budgetary, controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, debt service fund, and capital project fund are included in the annual appropriated budget. In addition, yearly operating budgets are adopted for the City's proprietary fund types to facilitate management evaluation. The level of budgetary control, that is, the level at which expenditures cannot legally exceed the, appropriated amount, is established by function or program within an individual fund. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Open encumbrances are reported as a reserve of fund balance at the end of a fiscal year for all governmental funds. Encumbrances at year end lapse and then are added to the following year's budgeted appropriations. The Reporting Entity The City of Santa Clarita was officially incorporated on December 15, 1987, after a ballot measure was passed by the City's residents. The City operates under a Council -Manager form of government and provides, either directly or under contract with the County of Los Angeles, a full range of municipal services including -public safety, public works, parks and recreation, community development, etc. This report includes all funds and account groups vi of the City of Santa Clarita, Santa Clarita Redevelopment Agency and Santa Clarita Public Financing Authority. General Government Functions A summary of the general government functions overall operating results for the fiscal year ended June 30, 1995 and the amount and percentage of increases and decreases in relation to prior year revenues and expenditures is presented below. General government functions include the General, Special Revenue, Debt Service, Capital Project and Expendable Trust funds. Details of these revenue and expenditure amounts (all amounts are in thousands) by fund, can be found in the accompanying general purpose financial statements. FISCAL YEAR 1994-95 REVENUES INCREASE PERCENT FY 94-95 PERCENT (DECREASE) OF INCREASE REVENUS: AMOUNT OFTOTAL FROMFY93-94 (DECREASE) TAXES $ 22,169 35.5 % $ 2,727 14.0 % LICENSES AND PERMITS 1,272 2.0 94 8.0 DEVELOPER FEES 4,796 7.7 3,284 217.3 USE OF MONEY & PROPERTY 2,340 3.7 460 24.5 REVENUES FROM OTHER AGENCIES 27,023 43.3 2,465 10.0 FINES AND FORFEITURES 418 0.7 89 26.9 SERVICE CHARGES & OTHERS 4,445 7.1 (925) (17.2) PROPERTY OWNER CONTRIBUTIONS - 0.0 (111) (100.0) TOTALS $ 62,463 100.0% $ 8,084 Use of Money & Prop. 3.7% 35.5% Vii t Permits Chrgs & Other 7.1% io As California makes a modest recovery from one of the worst recessions to hit the state in decades, the City of Santa Clarita has enjoyed the effects of a stronger economy. �? The City experienced an overall increase of 14.9% in general government revenues. For comparison purposes, this calculation reflects an adjustment to exclude revenue relating to Property Owners Contributions since these funds relate to proceeds from bond funds. The © stability of the City's tax revenues, which comprises 35.5% of the total revenue base has 0 assisted in minimizing the effects of a weak economy in prior years. This is reflected by Revenue from Taxes gain of 14.0% from last year's total. Sales tax, the City's largest O revenue source, increased by 20.1% due to a modest recovery in the state's economy. The © largest increase in taxes was seen in the business license tax which increased by 63.3% from last year because of stepped-up enforcement efforts as well as the implementation of the peddlers and solicitors ordinance. At the same time, franchises tax revenue increased 3.7% due to growth in the City. Revenues from Licenses and Permits showed an increase of 8.0% due to a rise in the issuance of building and safety permits. The 217.3% increase in Developer Fees is due primarily to the City recognizing revenue as a result of the completion of the San Fernando/Magic Mountain Bridge Widening project. An overall increase of 24.5% in Use of Money & Property occurred in fiscal year 1995. This is due mainly to a rise in interest rates resulting in an increase in interest income of 34.2%. Rental income rose 4.4% for two reasons: the Northridge Earthquake in fiscal year 1993-94 created vacancies while the City Hall was being repaired and occupancy rates this year have risen to an all-time high. Revenues from Other Agencies include many of the State and County subventions that the City receives. This revenue category experienced an overall increase of 10.0%. While revenue received from FEMA for the 1994 Northridge Earthquake damage has been tapering off, other revenue sources have increased significantly. Funds received from the Federal Housing and Urban Development Agency (H.U.D.) for the Community Development Block Grant (CDBG) increased by 286.7% due to reimbursements for the completion of East Newhall improvements. Also, Park Grants increased 573.1% as the City was able to obtain a over $700,000 from the State in grant monies for the construction of the Santa Clara River Trail. Fines and Forfeitures, which consists primarily of Vehicle Code Fines, increased by 26.9%. Revenue collected from parking violations had the largest increase because collection of these fines took place over the entire fiscal year as compared to eight months in the prior year. Revenues from Service Charges and Others experienced a decrease of 17.2%. This decrease is primarily due to the City receiving no insurance proceeds for earthquake damage this year as compared to approximately $3,000,000 received in fiscal year 1993-94. Included viii in the category of service charges is a new revenue, Storm Water Utility User Fees. This revenue is collected from residents within storm water utility assessment districts as a result of a Federally mandated program, NPDES (National Pollution Discharge Elimination System) which requires cities to control pollutants in storm water run off. Although this new revenue source added approximately $1,800,000 this year, it was not enough to offset the decrease in insurance proceeds for earthquake. FISCAL YEAR 1994-95 EXPENDITURES INCREASE PERCENT FY 94-95 PERCENT (DECREASE) OF INCREASE EXPENDITURES AMOUNT OF TOTAL FROM FY 93-94 (DECREASE) GENERAL GOVERNMENT $ 5,185 8.6 % $ 1,065 25.9 % PUBLIC SAFETY 10,116 16.7 859 9.3 PUBLIC WORKS 5,785 9.6 1,099 23.4 PARKS & RECREATION' 6,415 10.6 738 13.0 COMMUNITY DEVELOPMENT 4,747 7.9 851 21.8 CAPITAL OUTLAY 25,488 42.2 (714) (2.7) DEBT SERVICE 2,685 4.4 214 8.7 TOTALS $ 60,421 100.0 % $ 4,112, Parks & Recreation 10.6% Community Dv 7.9% Public Works Public Safety 0 9' t ° 16.7% Capital Outlay 42.2% rx Government 8.6% )t Service 4.4% During fiscal year 1994-95, the City saw an overall increase in total expenditures of 7.3%. The first category of expenditures, General Government, increased by 25.9%. This is partly due to Economic Development expenditures being classified as General Government, while last year, this division was reported under Community Development. CDBG expenditures rose significantly this year as work on East Newhall Improvements was completed. Additionally, the Community Recovery Agency, was in full operation this year compared to a partial year in fiscal year 1993-94 f n-ther`explaining the increase in this category. Public Safety, rose by 9.3% in large part because of an increase in police officers as well as an increase in sheriffs' salaries this year. With a full year of expenditures for parking citation services, as compared to a partial year last year, this also explains part of the increase in police services. Due to increases in Street Maintenance, Solid Waste, and Property Management, the Public Works category experienced a rise in expenditures of 23.4%. Street Maintenance expenditures were higher mainly because of preventive maintenance work done on streets that had minor earthquake damage not reimbursable by other sources. Solid Waste increased due to stepped up efforts in the fight against the Elsmere Canyon landfill. Finally, Property Management expenditures rose due to a rise in the tenant occupancy rate in the City Hall building and an increase in tenant improvements. Parks and Recreation expenditures went up 13.0% from last year. Increases in Parks Maintenance contributed a large portion of this increase due to additional grounds maintenance and personnel costs incurred as a result of more trees this year planted on the parks grounds. Furthermore, the new Community Center, a program that provides recreational, educational, and social opportunities for youths and adults, opened this year which also explains part of this increase. An overall increase of 21,8% occurred in the Community Development category due mostly to the new Storm Water Utility program which began this fiscal year as discussed in the Revenue section. Street sweeping, development of the Stormwater master plan, and personnel make up the greatest portion of these Storm Water Utility costs. Three hundred thousand dollars of this increase was offset by the shift of the Economic Development division to General Government from the Community Development category. Other areas that increased include Administration, Building and Safety, and Code Enforcement. Code Enforcement had the greatest increase because of the City's newly acquired responsibility this year for enforcing the peddlers permit program. As earthquake repairs begin to wind down in the City, expenditures for Capital Outlay have seen a slight decrease of 2.7% this year. Additionally, projects funded by the general fund have decreased as the City has been able to obtain funding from other sources. Expenditures for Debt Service increased 8.7% primarily due to an increase in debt service payments on the Home Depot loan. I . X Proprietary Funds These types of funds consist of enterprise and internal service funds. The City operates one enterprise fund, Transit Service, which offers Dial -A -Ride, local fixed route service, and commuter service to downtown Los Angeles, the San Fernando Valley, and the Antelope Valley. This enterprise fund was created to provide management with information relating to transit operations, which include debt service and depreciation and amortization. For fiscal year 1994-95, Proposition A funds of $3,043,145, Proposition C funds of $594,237, AQMD funds of $436,100, and TDA funds of $2,629,721 were used to subsidize transit activity not covered by user fees. The internal service funds provide services to other City departments. The City s internal service.funds consist of Self Insurance and Equipment Replacement funds. Combining statements for these funds and descriptions of each fund are presented in the Supplemental Information portion of this report. Gann Limit Proposition 4, the "Gann" initiative, was passed by California voters in 1978 and is intended to limit government appropriations. According to California law, cities must use the 1978-79 appropriations as a base year and modify that figure by the composite consumer price index and population changes which have accrued in subsequent years. Because Santa Clarita is a newly incorporated city, the Los Angeles County Local Agency Formation Commission used 1985-86 fiscal year appropriations at incorporation as the base year on which the City will modify each year. The City has since performed a study to increase the limit, and City appropriations remain below the Gain limitation and are expected to continue in that respect in the near future. Cash Management The City operates its pooled idle cash investments under the "Prudent Man Rule" and has adopted a formal investment policy. Such policy affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is.permissible under current effective legislation of the State of California and other regulations. The City recently received a Certificate of Excellence award from the Municipal Treasurer's Association of the United States and Canada for its Treasurer's Investment Policy. This is the third time the City submitted and was successful in receiving this award which commends the City for enhancing its fiscal responsibility in the management of fiscal funds. Temporarily idle cash was invested in a variety of investment vehicles, including the State Treasurer's Local Agency Investment Fund, Los Angeles County Pooled Investment Fund, Federal and Federal Agency instruments, Bankers Acceptances, and Commercial Paper. The City's diversified investment portfolio allows for flexibility and safety of the total invested xi O O 0 O O O 0 O O O a O 0 0 O funds. The weighted average yield on such investments for the year was 5.3521/o with total interest earnings for all funds at $1,819,612. Debt Administration In May 1991, the City entered into a master lease and option to purchase agreement in the amount of $2,150,000 for the lease of thirteen buses. Such agreement carries an interest of 6.6% payable simi-annually, due from November 1, 1991, through May 1, 2001. Under the terms of the agreement, the City has leased these transit buses for the establishment of a City-wide local public transit system. As of June 30, 1995, the master lease obligation aggregated $1,454,877. In October 1991, the Public Financing Authority Revenue Bonds - Series 1991 were issued in the amount of $22,940,000. The proceeds were used to purchase the City Hall building, pay off the corporate yard debt and will be used on certain capital road improvement projects. This was the City's first rated bond issue in which Standard and Poor assigned an A- Bond rating to the City of Santa Clarita. As of June 30, 1995, the City's obligation for Public Financing Authority Revenue Bonds - Series 1991 is $20,580,000. In October 1991, the City entered into a lease with an option to purchase agreement in the amount of $4,895,000 for the lease of sixteen buses from the Los Angeles County Transportation Commission (LACTC). The agreement carries interest rates ranging from 4.9% to 6.5%, payable semi-annually from July 1, 1992, through January 1, 2004. Balance of the LACTC lease obligation as of June 30, 1995, equals $3,955,000. In October 1992, the City received a distribution of loan proceeds totaling $2,557,436 from the Price Company. This money has been used for the acquisition of certain infrastructure improvements surrounding the Price Club. Interest on the note accrues at the rate of 10% per year. Payments are due quarterly and will equal 70% of the sales tax revenue generated monthly from the operation of the Price Club Center. The payments will be made for a period of 30 years: As of June 30, 1995, the City's obligation for the Note Payable is $2,557,436. In April, 1993, the City entered into an agreement whereby the City will reimburse Home Depot Company $690,000 for certain public improvements. Interest on the note accrues at the rate of 7% per year. Payments are due quarterly and will equal up to 50% of the sales tax revenue generated monthly from the operation of the Home Depot. The payments will be made for a period of 7 years or until accrued interest and principal are paid in full. Fiduciary Operations Trust and agency funds are maintained to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and other funds. The City's General Trust Fund is an expendable trust fund which accounts for assets and activities restricted to a specific purpose in accordance with a formal intent. An Agency fund is xii custodial in nature and is used to receive and disburse funds which do not belong to the City. The City's agency funds are the Deferred Compensation Plan which represents employee contributions invested in accounts with the International City Managers Association (ICMA) Retirement Corporation and the Community Facilities District No. 92-1 which represents bond proceeds from the sale of Special Tax Bonds, Series A. These bonds were issued to finance a portion of the costs of acquiring certain public infrastructure improvements located within the vicinity of the Valencia Town Center. The bonds were issued pursuant to the Mello -Roos Community Facilities Act of 1982. This fund was established during fiscal year 1992-93. Risk Management The City is self-insured for the first $250,000 on each general liability claim against the City. Third party coverage is currently maintained for general liability claims greater than $250,000 up to a limit of $10,000,000 and all worker's compensation claims. The City has a Safety Committee to promote safe and healthy work practices. Some of the objectives of the Safety Committee are to identify and review unsafe conditions and practices and to provide a means for their correction or elimination in a timely manner, establish employee safety training programs, and to promote a system of communication with employees regarding safety and health matters. In addition, the City maintains a comprehensive risk assessment program and annual hazard survey to identify areas that may pose liability issues. Secondly, the City has a policy of vigorously defending claims filed against Santa Clarita and continues to maintain an excellent loss history. General Fixed Assets The City's general fixed assets represent those fixed assets used in the performance of general government functions. At June 30, 1995, the City's general fixed assets aggregated $45,035,659. This amount represents the original cost of the assets or fair market value at the date of contribution to the City. No depreciation of general fixed assets is recognized in the City's accounting system. The General Fixed Assets Account Group does not include those assets defined as "infrastructure assets" (i.e., roads, curbs, gutters, sidewalks, etc.). Such assets are generally immovable and are deemed to be of value only to the City.. Other City Highlights The City of Santa Clarita has many reasons to be proud of its community. Consequently, great effort has been made to preserve the City as a family-oriented, safe, and aesthetically pleasing community. One way in which the City has done this is to conduct a community- wide strategic planning session during fiscal year 1994-95, called Share the Vision H. This session was an avenue for gathering feedback from residents on what they consider important goals for Santa Clarita. In response to this citizen participation, the City has been focusing its efforts on issues such as controlling traffic, planning for youth, revitalizing old Newhall, constructing new bike trails, reducing crime and gang activity, defeating Elsmere Canyon landfill, eliminating blighted areas, and other activities identified during the strategic planning session. Some of the major capital improvement projects that were completed during the year include the Soledad Canyon/Camp Plenty Bridge Widening project recognizable by the beautifully tiled walls along the bridge; the extension of Magic Mountain Parkway between Valencia Blvd. and San Fernando Road; and much-needed improvements in East Newhall with the construction of curbs, gutters, sidewalks, and allies. The City is also continuing to implement a City-wide trail network within the communities of Canyon Country, Saugus, Valencia and Newhall. This year, phases I and II of the South Fork Trail was completed and was opened for bicycle, pedestrian, and equestrian users as well as phase I of the Santa Clara River Trail. Once all the trails, as outlined in the City's General Plan, are complete, Santa Clarita will have the finest trail networks in the state of California. In an effort to address traffic needs in the City, the City Council approved the site of the first new road to be built since the City's incorporation. The road will be constructed between Magic Mountain Parkway and Via Princessa which, according to traffic flow studies, will be very effective in relieving current traffic congestion. Additionally, the City resurfaced approximately five miles of roadway and has treated about fifty miles with slurry as part of annual maintenance this year. The opening of the Community Center in Newhall this year has provided many new opportunities for young and old alike. The Center features a boxing program, toy library, dance classes, and tutoring. A Sheriff's substation is also located in the Center providing residents with added police services in the area. Waste Management and Recycling continues to be a primary concern for the City. Since 1991, the City has recycled over 32,000 tons! This year, several new programs were implemented including curbside motor oil and filter recycling, strategically located display boards showing ways residents can reduce waste, and recycling containers located at ten City parks. Television coverage of City Council meetings is now a reality in Santa Clarita making it possible for residents to stay abreast City issues in the convenience of their own homes. Channel 20, the City's new public access channel, airs every City Council meeting one day after the actual meeting takes place. Plans are being made for the meetings to be aired live in February, 1996:. Plans for revitalizing Old Downtown Newhall are well underway. The City has held numerous workshops for business owners and citizens over the past year to give residents the opportunity to voice their opinions. The goal is to transform and revitalize Downtown xiv Newhall within five years using funds from an Economic Development Administration grant. The City's dedication to serving the citizens of Santa Clarita, as well as its dedication to high standards and high quality in every task it performs, has earned the City various honors and awards. In honor of the City's budgeting process, the Excellence in Operating Budget award was received the last two years. A reflection on the Property Management division is the receipt of the very prestigious Building of the Year award given by Building Owners & Managers Association of Greater Los Angeles. Finally, the City of Santa Clarita was named "Tree City U.S.A." for the fifth year in a row by the National Arbor Day Foundation. These awards are evidence of the City of Santa Clarita's continued commitment to excellence. Economic Condition and Outlook During fiscal year 1994-95, the economy in Southern California began to see a modest recovery as unemployment rates dropped and retails sales increased. However, California is lagging behind the rest of the nation in a full recovery from the recession and overall growth remains slow. Nevertheless, the City of Santa Clarita has enjoyed significant growth this year as businesses continue to move into the City creating more jobs and generating more sales tax revenue. The opening of Creekside Place, a commercial plaza consisting of Barnes and Noble, one of the largest retail book store chains in the country; Focus Shoes; various other retail stores; and four restaurants including Louises Trattoria and the national chain, Applebees, has been a welcome addition to the Santa Clarita Valley creating 250 jobs. Best Buy, the very successful home electronic and computer retail store, also opened recently bringing about 125 jobs to the area. Another much anticipated addition to Santa Clarita is the opening of the family amusement center, Mountasia, bringing not only employment and revenue to the City, but also fun activities to be enjoyed by the youth in the area. The auto mall, the Valencia Town Center, Price Club, Target, Lucky, and Hughes Markets continue to be the largest sales taxpayers and major employers in the City. Santa Clarita is no doubt a growing city, both residentially and commercially as evidenced by our continued rise in property taxes, sales taxes, and building permits. Several new retail establishments, office complexes, manufacturing operations, and residential constructions are in the workings for the coming years. Among some are Galpin Saturn dealership, Spectrum Health Club, a four-story office complex within the Valencia Town Center and other small neighborhood commercial developments near Lyons Avenue and Orchard Village and Sierra Highway and Via Princessa. Coming soon to the Industrial Center is Puritan Quartz and Cardinal Manufacturing, a pharmaceutical distribution company. bm 0 0 0 0 With repairs from the 1994 Northridge earthquake in their final stages, and the recession Q having finally ended in California, the City of Santa Clarita can look forward to an even Q brighter future. Independent Audit State statutes require an annual audit by independent certified public accountants. The accounting firm of Diehl, Evans & Company has been selected by the City Council to perform this service. The auditors' report on the general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report. Awards I am pleased to report that CSMFO awarded its Outstanding Financial Reporting Award and GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Santa Clarita for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994. Based on the latest available data from GFOA, the City of Santa Clarita was one of 1,241 municipalities nationwide, of approximately 36,000 municipal governments, to receive this award. A GFOA Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to GFOA Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments Q The preparation of this report could not be accomplished without the efficient and dedicated O service of the entire staff of the Finance Department. I should like to express my p appreciation to all members of the department who assisted and contributed to its Q preparation, in particular, Susie LaSoya, Accounting Manager; Barbara Boswell, Senior Accountant; Michele Hansen and April Skinner, Accountants; Jackie Bialas, Account Clerk; Q and Nina Giangreco, the City's Graphic Artist. I should also like to thank the Mayor, Q Members of the City Council; and the City Manager, George Caravalho, for their continuing Q efforts in planning and administering the financial operations of the City in a responsible and Q progressive manner. Resp�ec�tfullly� submitted, � Steve Stark Director of Administrative Services xvi Certificate of Achievement for Excellence in Financial Reporting Presented to City of Santa Clarita, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,'1994 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. W tGl®AA „ i� President 5 SY.H.L. AfS ABAL s ?$ti U,j// J /VEx/ecutive/✓DJirector xvii 0 c� 0 0 0 0 0 0 0 0 000000000000000000000000000000000000000000000000000000 California Society of c Hunicipal `finance OfTwers Certificate of Award Outstanding Financial Reporting 1993-94 Presented to City of Santa Clarita This certificate is issued in recognition ofineeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared February 27,1995 Professional & Technical Standards Committee Dedicated to Excellence in Municipal Financial Management City Council Jo Anne Darcy Carl Boyer III Janice H. Heidt George Pederson Hamilton C. Smyth City Officials George Caravalho MAYOR MAYOR PRO -TEM COUNCILMEMBER COUNCILMEMBER CITY MANAGER Kenneth Pulskamp ASSISTANT CITY MANAGER ACTING COMMUNITY DEVELOPMENT DIRECTOR Carl Newton CITY ATTORNEY Donna Grindey CITY CLERK Steve Stark DIRECTOR OF ADMINISTRATIVE SERVICES U O Jeff Kolin DEPUTY CITY MANAGER O SPECIAL PROJECTS O O Lynn M. Harris DEPUTY CITY MANAGER DIRECTOR OF PUBLIC WORKS O O Rick Pumam DIRECTOR OF PARKS, RECREATION & COMMUNITY SERVICES O O Anthony Nisich CITY ENGINEER O O O O O O O O xix O 0 Building & Special Projects Community Development Ci&i of Sm Chita City Council City Maoaga Assi=nt City Manger • Elsmere Ami -Gang • Homan Relations City Atmmey • CityCksk • Budget • Risk Management • latergovemmental Relations • Public Info cion Personnel Public Administrative wake I I Setvima XX Parks, Recreation & Pu61ic Comity Services Safety CITY OF SANTA CLARITA LEGEND xxi U09008 MauuMa O 0 0 0 0 0 0 0 O co U09008 MauuMa O 0 0 0 0 0 0 0 w O w ©DIEBLEVANS &.CONrnANY CER1UTEED PCBUC.CCWWANTS A PART. MHIP LVCUIONG ACCO . TANCY C00.PJRATIOtiS 18401 VON KARMAN AVE.. SU17E 200 IRVINE; CALIFORNIA 92715.1542 PHONE (714) 757-7700 FAX (714) 757-2707 City Council City of Santa Clarita Santa Clarita, California September 29, 1995 INDEPENDENT AUDITORS' REPORT RODNEY K. M,D4NIEL CPA MICHAEL R, LUDIN. CPA CRAIG. W. SPRAKER. CPA PHILIP H. HOLTKAMR CPA THOMAS M. PERLOWSKE. CPA HARVEY SCHROEDER. CPA We have audited the general purpose financial statements of the City of Santa Clarita, California as of and for the year ended June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Santa Clarita as of June 30, 1995 and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was trade for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The financial statements of the combining individual funds and account group statements and schedules listed in the table of contents under supplementary information are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Santa Clarita. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. The statistical information listed in the table of contents is not a required part of the basic financial statements, and we did not audit or apply limited procedures to such information and do not express any assurance on such information. -1- OTHER OFFICES AT 2%5 ROOSEVELT STREET' 613 W. VALLEY PARKWAY. . SUITE 370 CARLSBAD. CA 920.2389 ESCONDIDO. CA 92025.2598 (619) 7292343 (619)741-3141 FAX (619) 729 2134 FV( (619) 741.98W lielauum .a asodmd jujauag ME 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0. 0 0 0 0 0 0 O0 0 0 0 C° 0 0 0 0 0 0 0 0 0 0 0 0 0, 0 0 GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF SANTA CLARITA COMBINED BALANCE SHEET—ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1995 With comparative totals for June 30, 1994 ASSETS AND OTHER DEBITS ASSETS: Cash and investments (Notes If and 2) Cash and investments with fiscal agent (Notes If, 2 and 9) Accounts receivable Interest receivable Due from other funds (Note 7) Due from other governments Deposits Prepaid items Advances to other funds Property, plant and equipment (Notes Ig and 3) Deferred bond issue costs OTHER DEBITS: Amount available for retirement of longterm debt Amount to be provided for retirement of longterm debt TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES: Accounts payable and accrued liabilities Deferred revenues (Notes le and 5) .Due to other governments (Note 5) Deposits Due to other funds (Note 7) Deferred compensation payable (Note 9) Longterm obligations (Notes 4 and 6) TOTAL LIABILITIES EQUITY AND OTHER CREDITS: Investment in general fixed assets (Note 3) Contributed capital (Note 16) Retained earnings (deficits) (Notes 10 and 12} Reserved Unreserved Fund balances (deficits) (Note 12): Reserved Unreserved: Designated Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY AND OTHER CREDITS Governmental Fund $ 9,737.125 $ 27.944 299 $ 2.273.257 $9.238.816 $ 2,783,358 $ 4,303,787 $ — $ 220,022 284,406 2,072,138 - - 10,592585 — — 68,412 — — - - 1,926,988 — 3,136,176 18,895,498 — 220,022 6,600,949 5,647,725 2,273,257 — 7,055,523 — 9,036,679 (3,654,447) — (17,885) 6,600,949 9,048,801 2,273,257 9,018,794 $ 9.737.125 $ 27.944.299 $ 2.273.257 $ 9.238.816 See independent auditors' report and notes to financial statements. —2— Special Debt Capital General Revenue Service Proiect $ 4,110,232 $ 18,164,634 $ — $ 6,766,103 — — 2,273,257 2,441,949 951,467 2,837,755 — — 59,619 235,637 — 30,764 3,512,294 61,470 — -- - 6,644,508 — 40,384 295 — — 1,063,129 — — — $ 9,737.125 $ 27.944 299 $ 2.273.257 $9.238.816 $ 2,783,358 $ 4,303,787 $ — $ 220,022 284,406 2,072,138 - - 10,592585 — — 68,412 — — - - 1,926,988 — 3,136,176 18,895,498 — 220,022 6,600,949 5,647,725 2,273,257 — 7,055,523 — 9,036,679 (3,654,447) — (17,885) 6,600,949 9,048,801 2,273,257 9,018,794 $ 9.737.125 $ 27.944.299 $ 2.273.257 $ 9.238.816 See independent auditors' report and notes to financial statements. —2— 2,273,257 2,273,257 2,260,473 - - - - 23,220,801 23,220,801 22,939,451 S 10.526.932 $ 675.514. $ 4.998.297 j:45 .035.659 $ L5.494 058 S 135.923,957 L126,139 $ 863,815 S 1,022,074 $ 16,956 $ - - 2,635,964 1;342,677 304,099 - - - 2,345,377 8,195,243 - - _ 10,401,735 1,326,173 4,998,297 - $ - $ 9,210,012 $ Fiduciary - - 2,356,544 Totals - - 10,592,585 Proprietary Fund Types Fund Types .Account Groups (Memorandum Only) 2,893,659 Trust General General - 25,494,058 33,689,301 33,105,776 Internal and Fixed Long -Term. June 30, June 30, Enterprise Service Agency Assets Debt 1995 1994 $ — $ 669,621 $ 353,650 S — S — S 30,064,240 $ 30,126,665 - - 4,433,421 - - 9,148,627 8,739,733 6,739 - 211,166 - - 4,007,127 3,313,011 - 5,893 60 - - 331,973 244,781 _ _ _ - - 3,573,764 2,893,659 350,645 - - -. - 6,995,153 3,429,474 489,500 - - - - 489,500 - 5,582 - - - - 46,261 39,121 _ - _ - - .1,063,129 163,730 9,585,545 - - 45,035,659 - 54,621,204 52,088,138 88,921 - - - - 88,921 101,314 2,273,257 2,273,257 2,260,473 - - - - 23,220,801 23,220,801 22,939,451 S 10.526.932 $ 675.514. $ 4.998.297 j:45 .035.659 $ L5.494 058 S 135.923,957 L126,139 $ 863,815 S 1,022,074 $ 16,956 $ - - 2,635,964 1;342,677 304,099 - - - 2,345,377 8,195,243 - - _ 10,401,735 1,326,173 4,998,297 - $ - $ 9,210,012 $ 10,841,138 - - 2,356,544 1,854,130 - - 10,592,585 - - - 2,704,376 2,500,397 - - 3,573,764 2,893,659 - - 2,345,377 1,641,724 - 25,494,058 33,689,301 33,105,776 25,494,058 64,471,959 52,836,824 - - - 45,035,659 - 45,035,659 43,832,451 452,704 - - - - 452,704 - 489,500 - - - - 489,500 489,500 (817,007) (650,659) - - - (1,467,666) (1,934,179) - - 14,521,931 11,724,521 - 16,092,202 22,179,629 - (3,672,332) (2,789,196) 125,197 (650,659) - 45,035,659 - 71,451,998 73,502,726 $ 10.526.932 L --L75 ,514 S4.998.297 S 45.035.659 LLS 1 135;923.957 S 126.339.550 -3- CITY OF SANTA CLARITA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 REVENUES: Taxes Licenses and permits Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Contributions from property owners Other revenue TOTAL REVENUES EXPENDITURES: Current operating: General government Public safety Public works Parks and recreation Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURE EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTBER FINANCING SOURCES (USES): Advances from other funds (Note 4c) Proceeds from longterm debt Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTBER FINANCING USES FUND BALANCES -BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT (NOTE 13) FUND BALANCES—BEGINNING OF YEAR, AS RESTATED FUND BALANCES—END OF YEAR Governmental Fund Types Special. Debt Capital General Revenue Service Project S 22,169,202 S — S — S — 1,272,109 — — - - 4,795,744 — — 902,009 913,988 105,808 417,759 5,654,276 20,766,249 — 602,209 122,996 295,357 — — 1,484,845 .1,936,938 — — 501,710 11,059 — 95 32,107,147 28,719,335 105,808 1,020,063 3,618,910 804,168 — 762,299 10,116,169 — — — 3,414,684 1,859,644 — — 6,414,630 — — — 3,702,011 1,045,070 — — 1,125,679 23,507,605 — 854,292 — 1,096,167 - - — 1,588,879 — 28,392,083 27,216,487 2,685,046 1,616,591 3,715,064 1,502,848 (2,579,238) (596,528) 899,399 1,441,584 140,728 2,592,022 — (2,668,022) (8,144,787) — (140,728) (1,226,438) (8,004,059) 2,592,022 758.671 2,488,626 (6,501,211) 12,784 162,143 4,154,932 15,842,898 2,260,473 8,856,651. (42,609) (292,886) — — 4,112,323 15,550,012 2,260.473 8,856,651 S 600.949S 962702.0 See independent auditors' report and notes to financial statements. —4— Fiduciary Totals Fund Type (Memorandum Only) Expendable June 30, June 30, Trust 1995 1994 $ — S 22,169,202 S 19,441,811 — 1,272,109 1,177,963 — 4,795,744 1,511,342 — 2,339,564 '1,879,079 — 27,022,734 24,557,407 — 418,353 329,687 — 3,421,783 1,415,329 — — 111,479 510,191 1,023,055 3,954,161 510,191 62,462,544 54,378,258 — 5,185,377 4,119,942 — 10,116,169 9,256,950 510,191 5,784,519 4,686,014 — 6,414,630 5,676,932 — 4,747,081 3,895,879 — 2.5,487,576 26,201,540 1,096,167 785,000 — 1,588,879 1,686,080 510,191 60,420,398. 56,308,337 2,042,146 (1,930,079) 899,399 163,730 690,000 4,174,334 3,451,653 — (10,9.53,537) (5,829,285) (5,879,804) (1,523,9021 (3,837,658) (3,453,981) 3.1,114,954 34,568,935 (335,495) — — 30,779,459 34,568,935 $ — S___2§141 .801 S 31.114.954 —5— CITY OF SANTA CLARTTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE FUNDS, DEBT SERVICE FUNDS AND ALL BUDGETED CAPITAL PROJECT FUNDS For the year ended June 30, 1995 REVENUES: Taxes Licenses and permits Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue TOTALREVENUES EXPENDITURES: Current operating: General government Public safety Public works Parks and recreation Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Advances from other funds Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES FUND BALANCES—BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES — BEGINNING OF YEAR, AS RESTATED FUND BALANCES—END OF YEAR General Fund Variance Favorable Budget Actual (Unfavorable) $ 20,305,200 $ 22,169,202 $ 1,864,002 1,341,100 1,272,109 (68,991) 802,500 902,009 99,509 6,763,798 5,654,276 (1,109,522) 17,000 122,996 105,996 1,543,909 1,484,845 (59,064) 132,183 501,710 369,527 30,905,690 32,107,147 1,201,457 5,926,594 3,618,910 2,307,684 9,993,800 10,116,169 (122,369) 3,694,174 3,414,684 279,490 6,822,644 6,414,630 408,014 4,445,982 3,702,011 743,971 2,666,027 1,125,679 1,540,348 33,549,221 28,392,083 5,157,138 (2,643,531) 3,715,064 6,358,595 926,600 1,441,584 514,984 (76,000) (2,668,022) (2,592,022) 850,600 (1,226,438) (2,077,038) (1,792,931) 2,488,626 4,281,557 4,154,932 4,154,932 — (42,609) (42,609) — 4,112,323 4,112,323 — 1 2,319,392 $ 6.600,949 $ 4.281.557 See independent auditors' report and notes to financial statements. —6— Special Revenue Funds Debt Service Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 6,959,300 4,795,744 (2,163,556) — — — 271,500 913,988 642,488 — 105,808 105,808 26,338,023 20,766,249 (5,571,774) — — — 345,000 295,357 (49,643) — — — 2,152,750 1,936,938 (215,812) — — — 20,000 11,059 (8,941) — — — 36,086,573 28,719,335 (7,367,238) — 105,808 105,808 7,490,688 804,168 6,686,520 — — — 2,352,115 1,859,644 492,471 — — — 1,751,550 1,045,070 706,480 — — — 52,739,912 23,507,605 29,232,307 — — - - — — 825,000 1,096,167 (271,167) — 1,755,299 1,588,879 166,420 64.334;265 27,216,487 37,117,778 2,580,299 X685.046 (104,747) (28,247,692) 1,502,848 29,750,540 (2,580,299) (2,579,238) 1,061 179,878 140,728 (39,150) (5,668,759) (8,144,787) (2,476,028) (5,488,881) (8,004,059) (2,515,178) (33,736,573) (6,501,211) 27,235,362 15,842,898 15,842,898 — (292,886) (292,886) — 15,550,012 15,550,012 — $ (18.186.561) $ 9.048.801 $ 27.235.362 764,000 2,592,022 1,828,022 764,000 2.592,022 1,828,022 (1,816,299) 12,784 1,829,083 2,260,473 2,260,473 — 2,260,473 2,260,473 — $ 444.174 $ 2.273,257 $ 1,829,083 mm (Continued) CITY OF SANTA CLARITA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE FUNDS, DEBT SERVICE FUNDS AND ALL BUDGETED CAPITAL PROJECT FUNDS (CONTINUED) For the year ended June 30, 1995 REVENUES: Taxes Licenses and permits Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue TOTAL REVENUES EXPENDITURES: Current operating: General government Public safety Public works Parks and recreation Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES All Budgeted Capital Project Funds Variance Favorable Budget Actual (Unfavorable) 319,265 319,265 602,209 602,209 95 95 — 921,569 921,569 898,900 762,299 136,601 4,013,452 854,292 3,159,160 4,912,352 1,616,591 3,295,761 (4,912,352) (695,022) 4,217,330 OTHER FINANCING SOURCES (USES): Advances from other funds — 899,399 899,399 Operating transfers in — — — Operating transfers out (79,258) (140,728) (61,470) TOTAL OTHER FINANCING SOURCES(USES) (79,258) 758,671 837,929 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES—BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES—BEGINNING OF YEAR, AS RESTATED FUND BALANCES -END OF YEAR (4,991,610) 63,649 5,055,259 6,513,196 6,513,196 — 6,513,196 6,513,196 — $ 1.521.586 $ 6.576.845 $ 5.055,259 See independent auditors' report and notes to financial statements. WE Totals (Memorandum Onl Budget Actual Variance Favorable (Unfavorable) $ 20,305,200 $ 22,169,202 $ 1,864,002 1,341,100 1,272,109 (68,991) 6,959,300 4,795,744 (2,163,556) 1,074,000 2,241,070 1,167,070 33,101,821 27,022,734 (6,079,087) 362,000 418,353 56,353 3,696,659 3,421,783 (274,876) 152,183 512,864 360,681 66,992,263 61,853,859 (5,138,404) 14,316,182 5,185,377 9,130,805 9,993,800 10,116,169 (122,369) 6,046,289 5,274,328 771,961 6,822,644 6,414,630 408,014 6,197,532 4,747,081 1,450,451 59,419,391 25,487,576 33,931,815 G 825,000 1,096,167 (271,167) 1,755,299 1,588,879 166,420 O 105,376,137 59,910,207 45,465,930 C (38,383,874) 1,943,652 40,327,526 — 899,399 899,399 1,870,478 4,174,334 2,303,856 (5,824,017) (10,953,537) (5,129,520) (3,953,539) (5,879,804) (1,926,265) (42,337,413) (3,936,152) 38,401,261 28,771,499 28,771,499 (335,495) (335,495) — U 28,436,004 28,436,004 — U (13,901,409) $ 24,499,852 $ 38,401,261 0 —9— Q CITY OF SANTA CLARITA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS—ALL PROPRIETARY FUND TYPES For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 OPERATING REVENUES:. Transportation revenue Charges for services TOTAL OPERATING REVENUES OPERATING EXPENSES: Administrative Transportation services Services and supplies Depreciation and amortization TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATINGRE'VENUES (EXPENSES): Interest income Interest expense Intergovernmental grants Other revenue TOTAL NONOPERATING REVENUES (EXPENSES) Totals Internal (Memorandum Only) Enterprise Service June 30, .June 30, .Fund Fund .1995 1994 S 1,648,075 S — S 1,648,075 S. 742,901 543,514 543,514 519,881 1,648,075 543,514 2,191,589 1,262.782 294,903 — 294,903 248,891 6,147,943 — 6,147,943 4,085,413 — 1,026,153 .1,026,153. 755,461 657,432 — 657,432 650,895 7,100,278 1,026,153 8,126,431 5,740,660 (5,452,203) (482,639) (5,934,842) (4,477,878) — 20,590 20,590 23,863 (459,683) — (459,683) (475,690) 27,337 — 27,337 259,139 33,908 — 33,908 7,419 (398.438) 20,590 (377,848) (185,269) NET LOSS BEFORE OPERATING TRANSFERS (5,850,641) (462,049) _ (6,312,690) (4,663,147) OPERATING TRANSFERS: Operating transfers in Operating transfers out NET OPERATING TRANSFERS NET INCOME (LOSS) RETAINED EARNINGS (DEFICITS) AT BEGINNING OF YEAR RETAINED EARNINGS (DEFICITS) AT END OF. YEAR 6,703,203 93,700 6,796,903 2,377,632 (17,700) — (17,700) — 6,685,503 93,700 6,779,203 2,377,632 834,862 (368,349) 466,513. (2,285,515) (1,162,369) (282,310) (1,444,679) 840,836 S (327,507) S (650,659) S (978,166) S (1,444,679) See independent auditors' report and notes to financial statements. —10— CITY OF SANTA CLARITA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 CASH FLOWS FROM OPERATINGACTIVITIES: Operating loss Adjustments to reconcile operating loss to net cash used by operating activities: - Depreciation and amortization Other revenue Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in interest receivable (Increase) decrease in due from other governments (Increase) decrease in deposit (Increase) decrease in prepaid items Increase (decrease) in accounts payable Total adjustments NET CASH USED BY OPERATINGACITVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Increase (decrease) in due to other funds Operating transfers. in from other funds Operating transfers out to other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets Contributed capital Intergovernmental grants Proceeds from long-term debt Principal payments on longterm debt Interest expense on longterm debt NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTMENT ACTIVITIES: Interest on investments NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 657,432 — 657,432 650,895 33,908 — 33,908 7,419 3,094 — 3,094 Totals — -Internal (Memorandum Only) Enterprise Service June 30, June 30, Fund Fund 1995 1994 (5,582) — (5,582) $ (5,452,203) S (482,639) S (5,934,842) S (4,477,878) 657,432 — 657,432 650,895 33,908 — 33,908 7,419 3,094 — 3,094 (9,833) — (1,343) (1,343) 2,065 1,057,215 — 1,057,215 661,206 (489,500) — (489,500) — (5,582) — (5,582) — (211,031) 357,381 146,350 (15,609) 1,045,536 356,038 1,401,574 1,296,143 (4,406,667) (126,601) (4,533,268) (3,181,735) (1,103,189) 131,858 (971,331) 1,869,175 6,703,203 93,700 6,796,903 2,377,632 (17,700) — (17,700) — 5,582,314 225,558 5,807,872 4,246,807 (1,971,187) — (1,971,187) (933) 452,704 — 452,704 — 27,337 — 27,337 259,139 1,307,000 — 1,307,000 — (1,021,318) — (1,021,318) (989,116) (459,683) — (459,683) (475,690) (1,665,147) — (1,665,147) (1,206,600) — 20,590 20,590 23,863 (489,500) 119,547 (369,953) (117,665) 489,500 550,074 1,039,574 1,157,239 S — S 669.621 S669.621 S1039.574 See independent auditors' report and notes to financial statements. —11— O n O IQ 5 w O O O O O O O O 5 w O O O O O O O 5 w 0 a 0 0 o .; 0 0 0 0 0 0 0 0 a 0 \i� L IV o, 0 O a 0 0 o. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q NOTES TO FINANCIAL STATEMENTS CITY OF SANTA CLARITA. NOTES TO FINANCIAL STATEMENTS June 30, 1995 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Reporting Entity: The City of Santa Clarita (the City), California 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; and recreation, animal control and street maintenance. The Santa Clarita Redevelopment Agency (the Agency) was established in July 1991, pursuant to the State of California Health and Safety Code, Section 33000. The primary purpose of the Agency is to encourage private redevelopment of property and to rehabilitate areas suffering from economic disuse arising from inadequate street layout and street access, lack of open space, landscaping and other improvements and facilities necessary to establish and maintain the economic growth of the City. The Agency has undertaken the entire area within the city limits of the City as a project area. The Santa Clarita Public Financing Authority (the Authority) was established in July 1991, as a joint power of authority between the City and: the Agency for the purpose of providing financing and funding of public capital improvements and the acquisition of property. The criteria used in determining the scope of the reporting entity are based on the provisions of GASB Statement 14. The City of Santa Clarita is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component unit's board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The Agency and the Authority have been accounted for as "blended" component units of the City. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City's operations. Accordingly, the balances and transactions of these component units are reported within the funds of the City. The Agency's transactions are reported as a separate Capital Project Fund and the Authority transactions are set forth as a separate fund in the Debt Service Funds. See independent auditors' report. -12- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): a. Reporting Entity (Continued): The following specific criteria were used in determining that the Agency and the Authority were blended component units: • The members of the City Council also act as the governing bodies of the Agency and the Authority. • The Agency and the Authority are managed by employees of the City. Financial statements for each of the individual component units may be obtained at the City's administrative offices. The City's comparative financial statements as of, and for the year ended, June 30, 1994, have been presented herein to include the City, Agency and Authority. However, prior year comparisons for each individual fund are not presented, since their inclusion would make the statements unduly complex and difficult to read. b. Description of Fund Types and Account Groups: The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity with a self -balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. For financial reporting purposes, the various funds for the City have been grouped according to defined fund types and account groups and are presented in this report as follows: Governmental Fund Types: General Fund - accounts for all the general revenue of the City not specifically levied or collected for other City funds and for expenditures related to the rendering of general services by the City. Special Revenue Funds - account for the proceeds of specific revenue sources that are restricted by law or administrative action for specified purposes. See independent auditors' report. -13- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Description of Fund Types and Account Groups (Continued): Governmental Fund Types (Continued) Debt Service Funds - account for accumulation of resources for, and payment of, interest and principal on long-term debt. Capital Project Funds - account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Proprietary Fund Types: Enterprise Fund - accounts for operations that are financed and operated in a manner similar to private enterprises, where the intent of City Council is that the costs and expenses, including depreciation and amortization, of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or where periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Internal Service Funds - account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in these funds and are charged to the user departments as such goods are delivered or services rendered. Fiduciary Fund Types: EEx endable Trust Fund - account for assets and activities restricted to a specific purpose in accordance with a trust agreement. Agency Funds - account for assets held by the City as an agent for the City employees' deferred compensation plan and assets held by the City as agent for the Community Facilities District 92-1. See independent auditors' report. -14- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Description of Fund Types and Account Groups (Continued): Account Groups: General Fixed Assets Account Group - account for fixed assets of the City, except for those accounted for in proprietary fund types. General Long -Term Debt Account Group - account for long-term debt of the City, except for debt accounted for in proprietary fund types. c. Basis of Accounting: Governmental fund types and the expendable trust fund are accounted for using the modified accrual basis of accounting. Generally, revenues are recognized when they become "susceptible to accrual", that is, measurable and available to finance expenditures of the current period. Revenues which are susceptible to accrual include property taxes received within 60 days after year end, sales taxes, and earnings on investments. Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not generally measurable until actually received. Grant funds which are reported in governmental fund types are recorded as a receivable when earned rather than when susceptible to accrual. Generally, this occurs when authorized expenditures are made under the grant program. Grant funds received before the revenue recognition criteria have been met are reported as deferred revenue. Expenditures are recognized when the fund liability is incurred, if measurable, except for unmatured interest on general long- term debt, which is recognized when due. The accrual basis of accounting is followed by the proprietary funds. Revenues are recognized when they are earned and expenses are recognized when the liability is incurred. Agency fund types are accounted for on the modified accrual basis of accounting. Agency type funds are purely custodial in nature (assets equal liabilities) and thus do not involve measurement of results of operations. See independent auditors' report. -15- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): d. Measurement Focus: All governmental funds and the expendable trust fund are accounted for on a spending or "financial flow" measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets, with the exception that the noncurrent portion of long-term receivables due to governmental funds are reported on their balance sheets, offset by fund balance reserve accounts. Statements of revenue, expenditures and changes in fund balances for governmental funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a cost of services or "capital maintenance measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with the activity are included on the balance sheets. Thew reported fund equity presents total net assets. Proprietary fund operating statements present increases (revenues) and decreases (expenses) in total net assets. e. Budgetary Accounting: The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1) The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. 2) The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. There were no significant non -budgeted financial activities. Actual expenditures may not exceed budgeted appropriations at the functional or program level. The City manager is authorized to transferbudgeted amounts at the program level. The City has the following programs accounted for through its governmental funds - general government, public safety, public works, parks and recreation, community development and capital expenditures. See independent auditors' report. -16- CITY OF SANTA CLARITA C� NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 O O 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): e. Budgetary Accounting (Continued): 3) Budgets for the General, Special Revenue Funds, Debt Service Funds and Capital Project Funds are adopted on a basis substantially consistent with generally accepted accounting principles. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparison is presented for the Community Facilities District No. 92-1 Capital Project Fund as the City does not adopt annual budgets for this type of fund. The following is a reconciliation of fund balance for budgeted and nonbudgeted funds. Capital Proiect Fund Balance - Budgeted Funds $ 6,576,845 Fund Balance - Nonbudgeted Funds 2.441.949 Total Fund Balance $9,018,794 4) The budgetary information shown for revenues and expenditures represent the original adopted budget adjusted for any changes made by the City Council or City Administrator. For the year ended June 30, 1995, budgeted appropriation in the governmental funds increased from $83,830,499 to $105,376,114. 5) Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations at year end lapse, and then reappropriated amounts are added to the following year's budgeted appropriations. At June 30, 1995 fund balances have been reserved for encumbrances carried forward. f. Cash and Investments: Investments are stated at cost (see Note 2), except that investments recorded in the Deferred Compensation Agency Fund are reported at market value. If market values decline below cost, no loss is recorded as such declines are considered temporary. The City's practice is to hold investments until maturity or until market values equal or exceed cost. However, if the liquidity needs of the City were to require that investments be sold at a loss subsequent to year end, the decline in value would be recorded as a loss at year end. See independent auditors' report. -17- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): L Cash and Investments (Continued): A substantial' portion of the City's investments are in short-term, highly liquid instruments, with original maturities of three months or less, including investments in the California Local Agency Investment Fund and Los Angeles County Pooled Investment Fund totaling $28,031,552. For purposes of the statements of cash flows, all pooled cash and investments held by the enterprise and internal service funds are considered to be short-term and, accordingly, are classified as cash and cash equivalents. g. Fixed Assets: General fixed assets are not capitalized in the fund used to acquire or construct them. Instead, capital acquisition and construction costs are reflected as expenditures in governmental fund types, and the related assets are reported in the General Fixed Assets Account Group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. General fixed assets acquired by capital lease are recorded as expenditures and other financing sources in the acquiring governmental fund. These obligations are then reflected in the general fixed assets and long-term debt account groups. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. Assets in the General Fixed Assets Account Group are not depreciated. Fixed assets purchased by proprietary fund types are capitalized at historical cost, while contributed assets are recorded at fair market value on the date donated. Depreciation is charged to operations using a straight-line method, based on the average useful life of the asset. The estimated useful lives of the assets are as follows: Equipment 5 - 12 years Building 35 years See independent auditors' report. 51.2 CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): h. Employee Compensated Absences: It is the government's policy to permit employees to accumulate earned but unused vacation (compensated absences). Vacation pay which is expected to be liquidated with expendable available resources is reported as an expenditure and liability of the governmental fund that will pay it. Compensated absences in the amount of $415,205 which are not expected to be liquidated with expendable available financial resources are reported in the General Long Term Debt Account Group. i. Property Taxes: Property taxes are an enforceable lien on property as of March 1. Taxes are levied on July 1 and are payable in two installments on November 1 and February 1, which become delinquent on December 10 and April 10, respectively. The County of Los Angeles bills and collects property taxes for the City. Remittance of property taxes to the City is accounted for in the City's General Fund. j. Inventories: Inventories are accounted for on the purchase (expenditure) method, whereby expenditures for inventory are written off as incurred. There were no significant inventories on hand at June 30, 1995. k. Claims and Judgements: 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 include an estimate for incurred but not reported claims (IBNR), and is recorded in an Internal Service Fund. 1. Total Columns on Combined Financial Statements: The combined financial statements include total columns which aggregate the financial statements of the various fund types and account groups. The columns are designated "Memorandum Only" because the totals are not comparable to a consolidation in that interfund transactions are not eliminated. See independent auditors' report. -19- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 2. CASH AND INVESTMENTS: The City manages its pooled idle cash and investments under a formal investments policy reviewed and adopted annually by the City Council and which follows the guidelines of the State of California Government Code. The City's investment policy specifically authorizes the City to invest in the following instruments: Treasury bills, Treasury notes, Federal agency securities, bankers' acceptances, negotiable and nonnegotiable certificates of deposit, commercial paper, the California Local Agency Investment Fund and the Los Angeles County Fooled Investment Fund. Classification of Deposits and Investments By Credit Risk: GASB 3 requires that deposits and investments be classified into three categories of credit risk. These categories are as follows: Deposits: Category 1 - Deposits which are insured by the FDIC. Category 2 - Deposits which are collateralized. The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $100,000 by the FDIC. The collateral for deposits in Federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as a third -parry trustee. These securities are physically held in an undivided pool for all California public agency depositors. Under government Code Section 53655, the placement of securities by a bank or savings and loan with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Category 3 - Deposits which are uninsured or uncollateralized. See independent auditors' report. -20- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 2. CASH AND INVESTMENTS (CONTINUED): Classification of Deposits and Investments By Credit Risk (Continued): Investments: Category 1 Investments which are insured by the Securities Investors Protection Corporation (SIPC), or investments which are held in definitive (i.e. physical) form by the City or the City's agent in the City's name, or investments acquired through the federal reserve book -entry system where the financial institution or broker/dealer associated with the purchases is separate from the custodial safekeeping agent on the same investments and where the investments are recorded on the books and records of the financial institution or broker/dealer in the name of the City. Category 2 - Investments which are uninsured, where the investments are acquired through a financial institution's investment or trading department, but are held in the same financial institution's trust department and are recorded in the City's name in the trust department's systems and records. Category 3 - Investments which are uninsured, 1) where the 'investments are acquired through a financial institution's investment department but are held for custodial purposes in the same financial institution's safekeeping department, or 2) where the investments are acquired through a financial institution's trust department, and held for custodial safekeeping by the same trust department, or 3) where the investments are acquired through, and held for safekeeping by, the same broker/dealer or 4) where investments are not held in the City's name in the systems and records of the financial institution or brokerldealer. See independent auditors' report. -21- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 2. CASH AND INVESTMENTS (CONTINUED): Investments Not Subject to Categorization: Investments in the California Local Agency Investment Fund (LAIF) and the Los Angeles County Pooled Investment Fund are not categorized, as GASB 3 does not require categorization of investment pools managed by another government. Also, investments of the Deferred Compensation Plan are not categorized, because the underlying assets of these funds consist primarily of guaranteed investment contracts (GICs) issued by insurance companies annuity contracts or open-ended mutual funds. All such investments are not required to be categorized under interpretive guidelines issued by the GASB. California Local Agency Investment Fund (LAIF): The LAIF is a special fund of the California State Treasury through which local governments may pool investments. The City and the Agency each may invest up to $20,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. Included in LAIF's investment portfolio are certain derivative securities in the form of structured notes and asset-backed securities. LAIF's and the City's exposure to credit, market, or legal risk is not available. Los Angeles County Pooled Investments Fund (LACPIF): The LACPIF is a pooled investment fund program governed by the Los Angeles County Board of Supervisors and is administered by the Los Angeles County Treasurer. Investments in LACPIF are highly liquid as deposits and withdrawals can be made at any time without penalty. In addition, there is no investment limit and interest earnings are calculated monthly and credited quarterly. Information on LACPIF's use of derivative securities in its investment portfolio, and LACPIF's and the City's exposure to credit, market, or legal risk is not available. See independent auditors' report. -22- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 2. CASA AND INVESTMENTS (CONTINUED): Deposits and investments were categorized as follows at June 30, 1995:: Investments with fiscal agents: Los Angeles County Pooled Investment Fund (LACPIF) United States Treasury Bills Commercial paper Bankers acceptance California Local Agency Investment Fund (LAIF) Los Angeles County Pooled Investment Fund (LACPIF) Deferred compensation Total 2,351,243 1,001,538 3,174,810 - $ $ 4,525,696 4,525,696 Market Value * - 2,351,243 $ 2.352.784 - 1,001,538 S 1.000,020 - 3,174,810 $ 3.198.102 18,352,084 18,352,084 5,153,772 5,153,772 2,345,377 2,345,377 $ 2,345,377 Investments $6,527,591 $ - $ - $ 30:376.929 36.904.520 TOTAL, CARRYING AMOUNT (BOOK BALANCES) $ 39,212.867 * Market value not available. See independent auditors' report. -23- Category Bank Carrying Deposits: 1 2 3 Balance Amount Demand accounts $ 143,040 $ 871,735 $ - $ 1,014,775 $ 30,792 Cash with fiscal agent 2.277.555 2.277.555 2.277.555. Total Deposits1$ 43,040 $ 871.735 $2.277,555 $ 3.292.330 2.308.347 Not Required Category To Be Investments: 1 2 3 Categorized Investments with fiscal agents: Los Angeles County Pooled Investment Fund (LACPIF) United States Treasury Bills Commercial paper Bankers acceptance California Local Agency Investment Fund (LAIF) Los Angeles County Pooled Investment Fund (LACPIF) Deferred compensation Total 2,351,243 1,001,538 3,174,810 - $ $ 4,525,696 4,525,696 Market Value * - 2,351,243 $ 2.352.784 - 1,001,538 S 1.000,020 - 3,174,810 $ 3.198.102 18,352,084 18,352,084 5,153,772 5,153,772 2,345,377 2,345,377 $ 2,345,377 Investments $6,527,591 $ - $ - $ 30:376.929 36.904.520 TOTAL, CARRYING AMOUNT (BOOK BALANCES) $ 39,212.867 * Market value not available. See independent auditors' report. -23- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 2. CASH AND INVESTMENTS (CONTINUED) Cash and investments are reported in the accompanying combined balance sheet as follows: Cash and investments $30,064,240 Cash and investments with fiscal agent 9,148.627 $39,212.867 Allocation of Interest Income Among Funds: Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest and to the proprietary funds. Interest is allocated monthly based on the cash balances in each fund receiving interest. Investments from bond proceeds are maintained separately and interest on these investments are allocated specifically to the capital projects fund which received the bond proceeds. 3. PROPERTY, PLANT AND EQUIPMENT Changes in the General Fixed Assets Account Group for the year ended June 30, 1995 are as follows: Changes in the enterprise fund property, plant and equipment for the year ended June 30, 1995 are as follows: Equipment acquired by capital lease Equipment purchased Building Land Less: accumulated depreciation Net Assets See independent auditors' report. Balance Balance Balance Balance July 1, 1994 June 30, 1995 1994 Additions Retirements 1995 Land and improvements $25,897,515 $ - $ - $25,897,515 Buildings 12,763,828 723,673 - 13,487,501 Equipment 5,171.108 479,535 - 5,650,643 Totals $43,832,451 $ 1,203,208 $ $45,035,659 Changes in the enterprise fund property, plant and equipment for the year ended June 30, 1995 are as follows: Equipment acquired by capital lease Equipment purchased Building Land Less: accumulated depreciation Net Assets See independent auditors' report. Balance Balance July 1, June 30, 1994 Additions Deletions 1995 $ 6,162,479 $ - $ - $ 6,162,479 83,764 228,160 - 311,924 3,657,462 - - 3,657,462 1,743,027 - 1,743,027 9,903,705 $ 1,971.187 $ _ 11,874,892 (1,648,018) (2,289,347) $ 8,255,687 $ 9,585,545 -24- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 4. GENERAL LONG-TERM DEBT: The following is a summary of the changes in the City's general long-term debt for the year ended June 30, 1995: Financing Authority Revenue Bonds - Series 1991 Notes payable Advances to other funds Compensated absences Totals Balance Balance July 1, June 30, 1994 Additions Deletions 1995 $21,405,000 $ - $ 825,000 $20,580,000 3,247,436 459,455 271,167 3,435,724 163,730 899,399 - 1,063,129 383,758 31,447 - 415,205 $25,199.924 $ 1,390,301` $ 1,096,167 25,494,058 a. Financing Authority Revenue Bonds - Series 1991: On October 1, 1991 the Santa Clarita Public Financing Authority issued $22,940,000 of Revenue Bonds - Series 1991. The Authority, simultaneously with the receipt of the Bond proceeds, acquired $22,940,000 of Certificates of Participation issued by the Santa Clarity Redevelopment Agency. The proceeds from the Certificates were transferred from the Agency to the City to finance and/or refinance the design, acquisition, improvement or construction of land, the City Hall Building and certain road improvements, and to refinance certain debt. In exchange for transferring the proceeds from the Certificates to the City, the Agency acquired a leasehold interest in land, the City Hall Building and certain public improvements (the facilities). The Agency leased back the facilities to the City for lease payments to be made by the City to the Financing Authority equal to the principal and interest due on the revenue bonds. Principal amounts on $6,055,000 of serial bonds mature annually each October 1, in the years 1992 through 2003 and bear interest at rates ranging from 4.80% to 6.50%. Term bonds in the amounts of $3,035,000, $7,000,000 and $6,850,000 are due October 1, 2011, 2020 and 2021, respectively, and bear interest at 6.70%, 7.00% and 6.75%, respectively. Interest is payable semi-annually on April I and October 1 beginning in 1992. See independent auditors' report. -25- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 4. GENERAL LONG-TERM DEBT (CONTINUED): a. Financing Authority Revenue Bonds - Series 1991 (Continued): The bonds are subject to optional redemption on or after October 1, 2001, and on any interest payment date thereafter at a price equal to the principal amount plus accrued interest to the redemption date, plus a premium ranging from 0.0% to 2.00%. The term bonds are subject to mandatory redemption on any October 1, from 1999 to 2021, in amounts ranging from $145,000 to $905,000, at a price equal to the principal amount plus accrued interest to the redemption date. In addition, the bonds are subject to mandatory redemption under various other circumstances as described in the official statement dated October 1, 1993. Future debt service requirements on the bonds are as follows: Year Ending June 30, Principal Interest Total 1996 $ 865,000 $ 1,350,143 $ 2,215,143 1997 915,000 1,300,278 2,215,278 1998 320,000 1,264,760 1,584,760 1999 345,000 1,244,970 1,589,970 2000 365,000 1,222,835 1,587,835' Thereafter 17,770,000 16,131,654 33,901,654 $20,580,000 $22.514,640 $43,094,640 b. Notes Payable: 1. The City entered into an agreement whereby the Price Company loaned the City $2,557,436 for the acquisition of certain public improvements. Interest on the note accrues at the rate of 10% per year. Payments are due quarterly and will equal 70% of the sales tax revenue generated monthly from the operation of the Price Club Center (owned by the Price Company). The payments will be made for a period of 30 years or until the accrued interest and principal are paid in full, beginning October 1, 1993, In the event that payments are insufficient to fully discharge the note in 30 years, the unpaid balance of principal and interest will be forgiven. Current information is not available of when sales tax is expected to exceed accrued interest on the note. Therefore, the City is adding accrued interest payable on the outstanding principal balance of the note. At June 30, 1995, accrued interest payable equalled $357,841. Information is not available to provide a debt payment schedule. See independent auditors' report. -26- CITY OF SANTA CLARITA NOTES TO. FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 4. GENERAL LONG-TERM DEBT (CONTINUED): b. Notes Payable (Continued): 2. In June, 1994 the City entered into an agreement whereby the City will reimburse Home Depot Company $690,000 for certain public improvements. Interest accrues at a rate of 7% per year. Payments are due quarterly and will equal up to 50% of the sales tax revenue generated monthly from the operation of the Home Depot. The payments will be made for a period of 7 years or until accrued interest and principal are paid in full In the event that payments are insufficient to fully discharge the note in 7 years, the unpaid balance of principal will be forgiven. As of June 30, 1995, the unpaid principal balance was $520,447. Information is not available to provide a debt payment schedule. c. Advances from Other Funds: The Agency has received advances totaling $1,063,129 from the City's General Fund, which were recorded as "Advances to Other Funds" in the General Fund. Current year advances of $899,399 are recorded as "Other Financing Sources" in the Agency's Capital Projects Fund. Since the debt will be repaid from future tax increments as it becomes available, the debt from the Agency to the General Fund has been classified in the General Long Term Debt Account Group. d. Compensated Absences: There is no fixed payment to pay the outstanding liability for compensated absences earned at June 30, 1995 of $415,205. 5. DEFERRED REVENUE AND DUE TO OTHER GOVERNMENTS: At June 30, 1995, deferred revenue consisted of the following: a. The City collects funds in advance to provide for reimbursement of costs for providing recreation classes to the public. At June 30, 1995, $284,406 in fees collected in advance for providing recreation classes were recorded as deferred revenue to reflect fees not earned. b. The City collects funds in advance from developers and receives grants to provide funds for construction of related projects. At June 30, 1995, $735,851 in the Bikeway Special Revenue Fund and $1,112,615 in the Developer Fees Special Revenue Fund related to grant and developer receipts were recorded as deferred revenue as the related expenditures for the construction projects had not been incurred. See independent auditors' report. INIE CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 5. DEFERRED REVENUE AND DUE TO OTBER GOVERNMENTS (CONTINUED): c. The City has received $25,177,644 in grant funds in the Earthquake Special Revenue Fund to provide for repairs related to the 1994 Northridge Earthquake. As of June 30, 1995, the City had incurred $17,395,464 in expenditures related to the grant funds. $3,034,077 of these expenditures have not been reimbursed as of year end. The City has recorded a liability for due to other governments in the amount of $10,592,585 to reflect working capital loans and duplicate reimbursements. The City has also recorded $223,672 as deferred revenue as costs related to these advances have not been incurred. 6. PROPRIETARY FUND TYPE LONG-TERM DEBT: The following is a summary of the changes in the proprietary fund type long-term debt for the year ended June 30, 1995: Master lease obligations Lease payable Notes payable Less: Lease Discount Total Proprietary Fund Long -Term Debt a., Master Lease Obligations: Balance Balance July 1, June 30, 1994 Additions Deletions 1995 $ 1,646,195 $ - $ 191,318 $ 1,454,877 4,285,000 - 330,000 3,955,000 2,000,000 1,307,000 500,000 2,807,000 7,931,195 1,307,000 1,021,318 8,216,877 (25.343) - (3.709) (21,634) 7,905,852 $ 1,307,000 1.017,609 $ 8,195.243 In May 1991, the City entered into a master lease and option to purchase agreement in the amount of $2,150,000 for the lease of thirteen buses. Such agreement carries an interest rate at 6.7% payable semiannually, due from November 1, 1991 through May 1, 2001. Under the terms of the agreement, the City has leased these transit buses for the establishment of a citywide local public transit system. See independent auditors' report. -28- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 6. PROPRIETARY FUND TYPE LONG-TERM DEBT (CONTINUED): a. Master Lease Obligations (Continued): Future lease payments under such obligations are as follows: Year 222,760 587,760 385,000 Ending 586,995 410,000 179,240 June 30, Principal Interest Total 1996 $ 204,351 $ 94,110 $ 298,461 1997 218,271 80,189 298,460 1998 233,140 65,320 298,460 1999 249,023 49,438 298,461 2000 265,986 32,475 298,461 Thereafter 284.106 14.355 298.461 $ 1.454.877 $ 335.887 1.790.764 b. Lease Payable: In October 1991, the City entered into a lease with an option to purchase agreement in the amount of $4,895,000 for the lease of sixteen buses from the Los Angeles County Transportation Commission. Such agreement carries interest rates ranging from 4.9% to 6.5%, payable semi-annually from July 1 1992 through January 1, 2004. Future lease payment requirements are as follows: Year Ending June 30. 1996 1997 1998 1999 2000 Thereafter See independent auditors' report. Principal Interest Total $ 345,000 $ 241,735 $ 586,735 365,000 222,760 587,760 385,000 201,995 586,995 410,000 179,240 589,240 435,000 154,640 589,640 2,015,000 333,430 2,348,430 $ 3,955,000 1,333,800 $ 5,288,800 -29- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 6. PROPRIETARY FUND TYPE LONG-TERM DEBT (CONTINUED): c. Notes Payable: 1. In September, 1992, the City entered into an agreement whereby the Los Angeles County Transportation Commission loaned the City $2,500,000 for the construction of a commuter rail station. Interest on the note accrues at the equivalent rate earned by the Los Angeles County Pooled Investment Fund plus one-half percent. Payments are due annually for five years. Based on current available information, estimated future loan payments are as follows: Year Ending June 30, Principal Interest Total 1996 $ 500,000 $ 50,750 $ 550,750 1997 500,000 29,000 529,000 1998 500.000 7.250 507.250 1 � 1 � � 11 � •�fi7[i'.�'.i7 2. In June, 1995 the City entered into an agreement with the Newhall Land and Training Company for the purchase of land to be developed for a rail station. Interest on the note accrues at the rate of 7-1/2% per year. Interest and principal payments are due quarterly. Future debt service requirements on the note are as follows: Year Ending June 30 Principal Interest Total 1996 $ 628,420 $ 81,412 $ 709,832 1997 678.580 32.337 710.917 $ 1.307.000 $ 113.749 $ 1.420.749 See independent auditors' report. -30- UI CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 INTERFUND BALANCES: Interfund receivable and payable balances as of June 30, 1995 are as follows: Fund General Fund Special Revenue Funds: Proposition A Traffic Safety Community Development Block Grant (CDBG) Federal Aid Urban (FAU) Earthquake Fund Miscellaneous Grants Fund Transit Enterprise Fund Self -Insurance Internal Service Fund 8. DEFINED BENEFIT PENSION PLAN: Due From Due To $ 3,512,294 $ - 1,180,472 33,016 373,736 336,034 61,470 3,730 1,342,677 304.099 $ 3.573.764 $ 3.573.764 The City contributes to the State of California Public Employees Retirement System (the "System"), an agent multiple -employer public employee retirement system that acts as a common investment and administrative agency for participating public entities within the State of California. The City's payroll for employees covered by the System for the year ended June 30, 1995 was $8,311,330. The total payroll for the year was $9,454,531. All full-time City employees are eligible to participate in the System. Part-time employees generally do not participate in the System. Benefits vest after five years of service. City employees who retire at or after age fifty, with five years of credited, service, are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to a benefit factor multiplied by their final compensation. Final compensation is the average monthly pay rate for the last consecutive 36 months of employment. The benefit factor is an account equal to between 1.92% and 2.418% multiplied by the number of years of credited employment. The percentage amount is based on the age of the employee at retirement, increasing from age 50 to age 63. Employee and Employer Contribution Obligations: The City makes the contributions required of City employees on their behalf and for their account. The employee contribution rate is set by statute. The present member rate is 7% of wages. See independent auditors' report. -31- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 8. DEFINED BENEFIT PENSION PLAN (CONTINUED): Employee and Employer Contribution Obligations (Continued): The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS actuaries and actuarial consultants, and adopted by the Board of Administration. Funding Status and Progress: The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to -help assess the funding status of the system on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include, (a) a rate of return on the investment of present and future assets of 8.5% a year compounded annually, (b) projected payroll increases of 4.5% a year compounded annually, attributable to inflation and across the board real salary increases, (c) no projected payroll increases attributable to seniority/merit, and (d) no post-retirement benefit increases. The excess of net assets available for benefits over the pension benefit obligation applicable to the City employees was $1,110,007 at June 30, 1994, as listed below. Pension benefit obligation: Retires and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 217,914 Current employees: Accumulated employee contributions, including allocated investment earnings 2,033,745 Employer -financed vested 634,709 Employer -financed nonvested 692.220 Total pension benefit obligation 3,578,588 Net assets available for benefits, at actuarial value (Market value, $4,674,529) 4.688.595 Excess of net assets over pension benefit obligation $ 1.110.007 Changes in the pension benefit obligation from last year includes a decrease of $283,090 for changes in actuarial assumptions. See independent auditors' report. -32- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 S. DEFINED BENEFIT PENSION PLAN (CONTINUED): Actuarially Determined Contribution Requirements and Contribution Made: The System uses the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. The System uses a modification of the Entry Age Cost method in which the employer's total normal cost is expressed as a level percentage of payroll. The System also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The City of Santa Clarita had no unfunded actuarial liability at June 30, 1995. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. A contribution of $1,201,325 for normal costs was made to the system for 1995 in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1994. The City contributed employer contributions of $601,823, (7.2% of current covered payroll) and on behalf of employees contributed $570,400 (6.9% of current covered payroll). An additional $29,102 was contributed by the employees (.004% of current covered payroll). Trend Information: Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information for the City of Santa Clarita is not published in the California Public Employees Retirement System Annual Report. See independent auditors' report. -33- CITYOF SANTA CLARITA NaFES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 8. DEFINED BENEFIT PENSION PLAN (CONTINUED): Trend Information (Continued): The City entered the system in fiscal year 1988-1989. Therefore, the trend information from 1988-1989 through 1993-94 and employer contributions and covered payroll for 1988-1989 through 1994-1995 is summarized as follows:. 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Net assets available for benefits (in hundreds) (1) $ 231.9 $ 4,452.8 $ 10,589.7 $ 18,952.3 $ 30,025.2 $ 46,886.0 $ ' Pension benefit obligation ((n hundreds) 406.9 3,230.4 8,527.1 15,912.0 27,591.3 35,785.9 Net assets available for benefits expressed as a percentage of pension benefit obligation 57.0% 137.8% 124.2% 119.1% 108.8% 131.0% ' Assets in excess (deficit) of pension benefit obligation (in hundreds) (174.9) (1,224.4) (2,062.6) (3,040.4) (2,433.9). (11,100.1) ' Annual covered payroll (in hundreds) 10,084.4 29,630.2. 55,144.9 76,089.6 72,445.3 74,087.5 83,113.3 Unfunded (assets in mess of) pension benefit obligation expressed as a percentage of annual covered payroll 19% (4.1%) (3.7%) (4.0%) (3.36%) (14.8) ` Employer contributions (in hundreds) 1,170.0 3.217.6 2,908.9 "3,911.9 4,129.5 4,071.0 6,018.2. Employer contributions expressed as a percentage of annual covered payroll. (These connibutions were made in accordancewith actuarially determined requirements). 11.6% 10.9% 7.2% 6.5% 5.7Y 5.59 7.2% ' Information at June 30, 1995 was not available. (1) Prior to 1993-94, net assets available for benefits were shown at book value. The 1993-94 net assets available for benefits are shown at actuarial value. See independent auditors' report. -34- Q CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 DEFERRED COMPENSATION PLAN: The City has established a deferred compensation plan for all officers and employees of the City under Internal Revenue code Section 457. Participation in the plan is voluntary and may be revoked at any time upon advance written notice. Generally, the amount of compensation subject to deferral until retirement, disability or other termination by a participant may not exceed the lesser of $7,500 or 33-1/3% of includible compensation. The City has established an additional plan for City management under Internal Revenue Service Code Section 401(a). Participation and City contribution in the plan are mandatory. The City is obligated to contribute amounts ranging from $1,500 to $7,500 per participant per year. Amounts withheld by the City under these plans are deposited regularly with the International City Managers Association (ICMA) Fund for investment. As required by Section 1.457-20) of Internal Revenue Service regulation, plan assets are held as unrestricted City assets subject only to the claims of the general creditors of the City. Participant rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The City's fiduciary responsibilities under the Plan include the deduction of deferred compensation from employee compensation and the remittance of such deductions to ICMA for investment. The assets of the Plan in the amount of $2,345,377 are included in an Agency Fund in the City's financial statements. 10. INDIVIDUAL FUND DISCLOSURES: a. Deficit Fund Balances/Retained Earnings: Funds which have deficit fund balances/retained earnings at June 30, 1995 are as follows: Special Revenue Funds: Bikeway Developer Fees FAU Earthquake Miscellaneous Giants Capital Project Fund - Redevelopment Agency Enterprise Fund Transit Internal Service Fund Self-insurance See independent auditors' report. -35- 96,334 676,434 336,521 2,541,428 3,730 17,885 327,507 1,326,173 CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 10. INDIVIDUAL FUND DISCLOSURES (CONTINUED): a. Deficit Fund Balances/Retained Earnings (Continued): The City plans to remove the deficit in the Special Revenue Funds through operating transfers from the General Fund, developer fees and additional grant revenue from other governmental agencies. The deficit in the; Redevelopment Agency Capital Project Fund will be funded from general fund loans. The deficit in the Transit Enterprise Fund will be funded from operating transfers from other funds and an increase in fares. The deficit in the Self-insurance Fund has been reserved in the General Fund and the City plans on recovering this amount through future operating transfers. b. Funds Where Expenditures Exceeded Appropriations: Actual expenditures in the City General Debt Service Fund exceed appropriations by $104,747. 11. SELF-INSURANCE: The City is self-insured for the first $250,000 on each general liability claim against the City. At June 30, 1995 $997,972 was accrued for generally liability claims. These accruals represent estimates of amounts to be paid for incurred and reported claims as well as incurred but unreported claims based upon past experience and modified for current trends and information. While the ultimate amounts of losses incurred through June 30, 1995 are dependent on future developments, based upon information provided from the City Attorney, outside counsel and others involved with the administration of the programs, the City's management believes that the aggregate accrual is adequate to cover such losses. Third -party coverage is currently maintained for general liability claims greater than $250,000 up to a limit of $10,000,000. 12. RESERVES AND DESIGNATIONS OF FUND EQUITY: A city may set up "reserves" of fund equity to segregate fund balances or retained earnings which are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use. Fund "designations" also may be established to indicate tentative plans for financial resource utilization in a future period. See independent auditors' report. -36- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 12, RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED): The City's reserves and designations at. June 30, 1995, are tabulated below, followed by explanations as to the nature and purpose of each reserve and designation. Reserves: Continuing appropriations Encumbrances Self-insurance Advances to other funds Accounts receivable Prepaid items Earthquake Debt service TOTAL RESERVES Designations: Capital improvements Special revenue purposes TOTAL DESIGNATIONS a. Reserved for Continuing Appropriations: Special Capital Revenue Project Funds Funds $ - $ 9,036,679 7.055.523 - $ 7.055.523 $ 9.036.679 Appropriations for capital projects and other expenditures which are unexpended as of June 30, 1995 will carry forward as continuing appropriations to be expended in 1995-96. b. Reserved for Encumbrances: Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. c. Reserved for Self-insurance: This reserve is for the deficit retained earnings in the Internal Service Fund for Self-insurance. d. Reserved for Advances to Other Funds: This reserve is set up to reflect the advances to the Redevelopment Agency so that they will not be considered as current funds available. See independent auditors' report. -37- Special Debt General Revenue Service Enterprise Fund Funds Funds Fund $ 441,876 $ 711,630 $ - $ - 1,268,498 4,936,095 - - 1,326,173 - - 1,063,129 - - 74,528 - - 40,384 - - - 2,386,361 - 2.273.257 489.500 $ 6.600.949 $ 5.647,725 $ 2.273.257 $ 489.500 a. Reserved for Continuing Appropriations: Special Capital Revenue Project Funds Funds $ - $ 9,036,679 7.055.523 - $ 7.055.523 $ 9.036.679 Appropriations for capital projects and other expenditures which are unexpended as of June 30, 1995 will carry forward as continuing appropriations to be expended in 1995-96. b. Reserved for Encumbrances: Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. c. Reserved for Self-insurance: This reserve is for the deficit retained earnings in the Internal Service Fund for Self-insurance. d. Reserved for Advances to Other Funds: This reserve is set up to reflect the advances to the Redevelopment Agency so that they will not be considered as current funds available. See independent auditors' report. -37- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 12. RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED): e. Reserved for Accounts Receivable: This reserve is to indicate that these accounts receivables are not "available" as a resource to meet expenditures of the current year. f. Reserved for Prepaid Items: This reserve is to indicate these prepaid items are not "available" as a resource to meet expenditures of the current year. g. Reserves for Earthquake: The remainder of the fund balance in the General Fund has been reserved to fund the deficit fund balance in the Special Revenue Earthquake Fund. h. Reserved for Debt Service: These reserves represent amounts accumulated in accordance with a"bond indenture or similar covenant. i. Designated for Capital Improvements: These funds are designated to provide for new capital additions as determined by the City Council. j. Designated for Special Revenue Purposes: These funds are designated for the specific special revenue purpose as restricted by law or administrative action. 13. PRIOR PERIOD ADJUSTMENTS: Noted below are adjustments to fund balances at June 30, 1994. a. The beginning fund balance in the General Fund was decreased by $42,609 to correct for expenditures related to contractual services not accrued at June 30, 1994. b. The beginning fund balance in The Bikeway Special Revenue Fund was decreased by $292,886 to correct for deferred revenue incorrectly recorded as revenue for the year ended June 30, 1994. See independent auditors' report. cM.' CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1995 14. SEGMENT INFORMATION: Net working capital deficit of the Transit Enterprise System at June 30, 1995 was as follows: Current assets $ 362,966 Current liabilities payable from current assets (3.884.263) Net working capital (deficit) $ (3.521.297) 15. POST EMPLOYMENT BENEFITS: In addition to the retirement benefits described in Note 8, the City provides post-retirement health care benefits in accordance with a City resolution to all employees who retire from the City on or after attaining age 50 with 5 years PERS credited service. The City pays the cost of the retirees enrollment including the enrollment of family members in a health benefits plan to a maximum of $363 per month. According to the following schedule: From date of retirement to August '1 of same year the City pays $1 per month. On August I and each August 1 thereafter, the City's portion of the premium is increased by 5% of the maximum until the maximum is reached. The City funds these amounts on a pay-as-you-go basis. For fiscal year 1994-95 there were two eligible participants, for which, the City paid $1,166 for medical insurance premiums. 16. CONTRIBUTED CAPITAL: Changes in the Transit Enterprise Fund's contributed capital were as follows: Balance June 30, 1994 $ - Grants contributed 452.704 Balance June 30, 1995 $ 452.704 17. SUBSEQUENT EVENT: On September 28, 1995, the California Supreme Court affirmed a Court of Appeals decision which reinstated provisions of Proposition 62 originally enacted in 1986 and then reversed by a lower court. Under these provisions of Proposition 62, California governmental agencies are required to obtain a majority voter approval for any tax to be enacted. It is unclear whether the Supreme Court ruling will be made retroactive to 1986, thus causing California cities and districts to refund to taxpayers such taxes collected as utility, business license or hotel occupancy taxes. At this time, it is uncertain as to the outcome or the possible financial impact to the City. See independent auditors' : report. -39- O cyll Oft Fb 0 0 0 ,'i.#M,PUOjjUULIOM SavivamolddnS 0 0 0 :� v . :. -.� x\>� .. \ � 10 lb i b SUPPLEMENTARY INFORMATION O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n 0 c 0 0 0 0 0 GENERAL FUND The General Fund is the general operating fund of the City. All general tax revenues and other receipts not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include general operating costs not paid through other funds. CITY OF SANTA CLARITA COMPARATIVE BALANCE SHEET GENERAL FUND June 30, 1995 and 1994 ASSETS Cash and investments Accounts receivable Interest receivable Due from other funds Due from other governments Prepaid items Advances to other funds TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable and accrued liabilities Deferred revenues Deposits TOTAL LIABILITIES FUND BALANCE: Reserved for continuing appropriations Reserved for encumbrances Reserved for self—insurance Reserved for advances to other funds Reserved for accounts receivable Reserved for prepaid items Reserved for earthquake Unreserved: Designated for contingencies TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE. —40— June 30, June 30, 1995 1994 $ 4,110,232 $ 2,460,570 951,467 872,172 59,619 44,838 3,512,294 2,893,659 — 17,232 40,384 39,121 1,063,129 163,730 $ 9,737,125 $ 6,491,322 $ 2,783,358 $ 2,044,426 284,406 190,079 68,412 101,885 3,136,176 2,336,390 441,876 492,674 1,268,498 2,070,516 1,326,173 836,934 1,063,129 163,730 74,528 113,986 40,384 39,121 2,386,361 — 437,971 6,600,949 4,154,932 $ 9,737,125 $ 6,491,322 CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE— BUDGET .AND ACTUAL GENERAL FUND For the year ended June 30, 1995 With comparative actual amounts for the year ended June 30, 1994 1995 1994 0 Variance Favorable Budget Actual (Unfavorable) _ Actual Q REVENUES. Taxes $ 20,305,200 $ 22,169,202 $ 1,864,002 S 19,441,811 Q Licenses and permits 1,341,100 1,272,109 (68,991) 1,177,963 Use of money and property 802,500 902,009 99,509 620,484 Revenue from other agencies, 6,763,798 5,654,276 (1,109,522) 4,994,380 Q Fines and forfeitures 17,000 122,996 105,996 72,650 Service charges 1,543,909 1,484,845 (59,064) 1,363,034 O Other revenue 132,183 501,710 369,527 87,973 Q TOTALREVENUES 30,905,690 32,107,147 1,201,457 27,758,295 Q EXPENDITURES: �J Current operating: (� General government 5,926,594 3,618,910 2,307,684 3,626,943 Public safety 9,993,800 10,116,169 (122,369) 9,256,950 Public works 3,694,174 3,414,684. 279,490 2,798,663 Parks and recreation 6,822,644 6,414,630 408,014 5,676,932 (� Community development 4,445,982 3,702,011 743,971 3,811,490 Capital outlay 2,666,027 1,125,679 1540.348 2,470.758 TOTAL EXPENDITURES 33,549,221 28,392,083 5,157,138 27,641,736 Q EXCESS OF REVENUES OVER (� (UNDER) EXPENDITURES (2,643,531) 3,715,064 6,358,595 116,559 O Q OTHER FINANCING SOURCES (USES): Proceeds from long-term debt — — — 690,000 Q Operating transfers in 926,600 1,441584 514,984 313,923 0 Operating transfers out (76,000) (2,668,022) (2,592,022) (2,516,278) TOTAL OTHER FINANCING 0 SOURCES (USES) 850,600 (1,226,438) (2,077,038) (1,512,355) EXCESS OF REVENUES AND b OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES 0 AND OTHER FINANCING USES (1,792,931) 2,488,626 4,281,557 (1,395,796) FUND BALANCE—BEGINNING OF YEAR, AS ORIGINALLY STATED 4,154,932 4,154,932 — 5,550,728 Q PRIOR PERIOD ADJUSTMENT (42,609) (42,609) — — i� FUND BALANCE—BEGINNING OF YEAR, (� AS RESTATED 4,112,323 4,112,323 — 5,550,728 Q FUND BALANCE—END OF YEAR E 2.319.392 S6.600.949 $ 4.281.557S 4.154.932 —41— SPECIAL REVENUE FUNDS The Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. Funds included are: Bikeway - To account for monies received from the State of California restricted for bicycle and pedestrian facilities available under Article 3 of Transportation Development Act (SB821). Bridge and Thoroughfare - To account for monies received from developers for street and highway construction through bridge and thoroughfare districts. Developer Fees - To account for monies received from developers for street improvements. Gas Tax - To account for monies received and expended from the state and county gas tax allocation restricted to fund various street and highway improvements including maintenance. Park Improvement - To account for monies received from developers restricted to fund the acquisition and development of new park land space.: Proposition A - As " Proposition A" increased sales tax in Los Angeles County by one-half percent (.5%), this fund accounts for financial activity relative to the City's share of these monies. "Proposition A" revenue is to be used for transportation -related purposes. Special Assessment - To account for monies received for small special assessment districts. State Park - To account for grant monies received from the State of California Department of Parks and Recreation for construction or improvements of park lands within the City. TDA Funds - To account for monies received from the State of California under Article 8 of the Transportation Development Act (TDA). These funds may be used for local streets and road expenditures when the City's unmet transportation needs have been satisfied. Traffic Safety - To account for monies received from vehicle code fines. This fund is used to finance law enforcement expenditures. CDBG (Community Development Block Grant) - To account for Federal entitlements under the Housing and Community Development Act of 1974, as amended. The City Council annually allocates CDBG Funds to various programs. FAU (Federal Aid Urban) - To account for receipts and disbursements of Federal contributions to infrastructure capital improvements. Proposition C - As "Proposition C" increased sales tax in Los Angeles County by one-half percent (.5%), this fund accounts for financial activity relative to the City's share of these monies. 'Proposition C" revenue is to be used for transportation -related purposes, SPECIAL REVENUE FUNDS (CONTINUED) Funds included are (Continued): AOMD (Air Quality Management District) - To account for revenues and expenditures for Air Quality Management. Aid to Cities - To account for receipts and disbursements associated with County Aid to cities grant. Earthquake Fund - To account for receipts and disbursements associated with reconstruction projects as a result of the 1994 Northridge earthquake. Landscape Maintenance District #1 - To account for receipts and disbursements for landscape district. Stormwater Utility Fund - To account for receipts and disbursements for stormwater and run-off programs. Miscellaneous Grants Fund - To account for receipts and disbursements for miscellaneous grants. CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS June 30, 1995 With comparative totals for June 30, 1994 ASSETS Cash and investments Accounts receivable Interest receivable Due from other funds Due from other governments .Prepaid items TOTAL ASSETS LIABILITIES AND FUND BALANCES Bridge and Developer Gas Bikeway Thoroughfare Fees Ta $ 632,737 $ 3,998,341 S 1,189,459 $ 1,254,323 — — 49,977 988 6,825 35,089 15,304 11,035 $ 639,562 $ 4,033,430 S 1,254,740 $ 1,266,346 LIABILITIES: Accounts payable and accrued liabilities $ 45 $ — S 818,559 $ 158,126 Deferred revenues 735,851 — 1,112,615 — Due to other governments — — — — Due to other funds — — — TOTAL LIABILITIES FUND BALANCES (DEFICITS): Reserved for encumbrances Reserved for continuing appropriations Unreserved: Designated for special revenue purposes Undesignated TOTAL FUND BALANCES (DEFICITS) 735,896 — 1,931,174 158,126 — — — 494,805 19,959 4,033,430 — .593,456 (96,334) — (676,434) — (96,334) 4,033,430 (676,434) 1,108,220 TOTAL LIABILITIES AND FUND BALANCES S 639,562 $ 4,033,430 $ 1,254,740 $ 1,266,346 —42— Park Proposition Special State TDA Traffic Improvement A Assessment Park Funds Safety CDBG 35,932 $ 738,151 $ 80,975 $ - $ 226,894 $ 444,708 $ 1,278,904 $ - $ - - 1,067,981 - - 38,160 33,016 - 1,384 16,477 1,954 4,360 49,280 2,916 - - 105,726 807 - 2,629,721 - 738,151 $ 82,359 $ 1,190,184 $ 229,655 $ 449,068 $ 3,996,065 $ 35,932 $ 738,151 $ - $ 1,141 $ 5,269 $ 18,015 $ 316,424 $ - $ 362,889 1,180,472 - - - 33,016 .373,736 1,181,613 5,269 18,015 318,424 33,016 736,625 22,383 - 52,427 214,862 1,550,360 4,965 5,000 - 216,191 438,793 55,011 3,571. 171,959 - 1,688,488 2,916 1,526 82,359 8,571 224,386 431,053 3,677,641 2,916 1,526 $ 82,359 $ 1,190,184 $ 229,655 $ 449,068 $ 3,996,065 $ 35,932 $ 738,151 (Continued) -43- CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS (CONTINUED) June 30, 1995 With comparative totals for June 30, 1994 TOTALASSEI'S LIABILITIES AND FUND BALANCES LIABILITIES S — S 2,239,996 $ 54,924 $ 218,775 :Accounts payable and accrued liabilities T 487 S 72,039 S 1,573 $ .Deferred revenues — — — — Due to other governments — — — Due to other funds 336,034 — — — TOTAL LIABILITIES FUND BALANCES (DEFICITS): Reserved for encumbrances Reserved for continuing appropriations Unreserved:. Designated for special revenue purposes Undesignated TOTAL FUND BALANCES (DEFICITS) TOTAL LIABILITIES AND FUND BALANCES 336,521 72,039 1,573 — 2,167,957 :1,840 122,480 — — 26,722 51,511 69,573 (336,521) — — (336,521) 2,167,957 53,351 218,775 $ — S 2,239,996 $ 54,924 $ 218,775 lsEfl Proposition Aid to FAU C AQMD Cities ASSETS Cash and investments $ — S 2,114,332 $ 12,865 $ 216,881 Accounts receivable — 12,846 38,120 — Interest receivable — 23,723 3,939 1,894 Due from other funds — — — — Due from other governments — 89,095 — — Prepaid items — — — TOTALASSEI'S LIABILITIES AND FUND BALANCES LIABILITIES S — S 2,239,996 $ 54,924 $ 218,775 :Accounts payable and accrued liabilities T 487 S 72,039 S 1,573 $ .Deferred revenues — — — — Due to other governments — — — Due to other funds 336,034 — — — TOTAL LIABILITIES FUND BALANCES (DEFICITS): Reserved for encumbrances Reserved for continuing appropriations Unreserved:. Designated for special revenue purposes Undesignated TOTAL FUND BALANCES (DEFICITS) TOTAL LIABILITIES AND FUND BALANCES 336,521 72,039 1,573 — 2,167,957 :1,840 122,480 — — 26,722 51,511 69,573 (336,521) — — (336,521) 2,167,957 53,351 218,775 $ — S 2,239,996 $ 54,924 $ 218,775 lsEfl $ 2,345,826 $ Landscape. $tormwater Miscellaneous. Totals Earthquake Maintenance Utility Grants June 30, June 30, Fund District #1 Fund Fund 1995 1994 $ 5,876,064 $ 3,867 S 834,284 $ — $ 18,164,634 $ 19,861,278 1,596,667 — — — 2,837,755 2,420,103 52,377 30 9,050 — 235,637 187,479 61,470. — — — 61,470 — 3,034,077 — 46,931 — 6,644,508 2,004,382 — — 295 — 295 — S 10,620,655 $ 3,897 S 890,560 $ — $ 27,944,299 S 24,473,242 $ 2,345,826 $ — $ 201,394 $ — $ 4,303,787 S 6,690,741.: 223,672 — — — 2,072,138 1,664,051 10,592,585 — — — 10,592,585 - - — — 3,730 1,926,988 275,552 13,162,083 — 201.394 3,730 18,895,498 8,630,344 — — 308,981 — 4,936,095 4,499,361 — — 711,630 '1,247,726 — 3,897 380,185 — 7,055,523 12,798,133 (2,541,428) — -- (3,730) (3,654,447) (2,702,322) (2,541,428) 3,897 689,166 (3,730) 9,048,801 15,842,898 $ 10,620,655 $ 3,897 $ 890,560 $ — $ 27,944,299 $ 24,473,242 —45— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 REVENUES: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTALREVENUES EXPENDITURES: Current operating: General government Public. works Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES} Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES(USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES FUND BALANCES (DEFICITS)— BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES (DEFICITS)— BEGINNING OF YEAR, AS RESTATED (47,752) 483,552 (147,399) 750,172 (145,000) (562,639) (65,261) (145,000) — (562,639) (65,261) (192,752) 483,552. (710,038) 684,911 389,304 3,549,878 33,604 423,309 (292,886) — — — 96,418 3,549,878 33,604 423,309 FUND BALANCES (DEFICITS)—END OF YEAR S (96,334) S 4,033,430 S (676,434) S 1,108,220 —46— Bridge and Developer Gas Bikeway Thoroughfare Fees Tax- $ — $ 347,519 S 4,383,184 S 27,771 136,033 43,756 36,137 52,981 — — 2,553,636 — — — 8,489 80,752 483,552 4,426,940 2,598,262 — — — 1,822,264 128,504 — 4,574,339 25,826 128,504 — 4574,339 1,848,090 (47,752) 483,552 (147,399) 750,172 (145,000) (562,639) (65,261) (145,000) — (562,639) (65,261) (192,752) 483,552. (710,038) 684,911 389,304 3,549,878 33,604 423,309 (292,886) — — — 96,418 3,549,878 33,604 423,309 FUND BALANCES (DEFICITS)—END OF YEAR S (96,334) S 4,033,430 S (676,434) S 1,108,220 —46— Park Proposition Special State TDA Traffic Improvement A Assessment Park Funds Safety CDBG $ - $ - $ 5,041 $ - $ - $ - $ - 6,595 43,309 8,142 5,830 254,299 7,728 - - 2,808,611 - 786,042 2,654,697 - 1,090,072 _ - - - - 295,357 - - - 86,725 - - - - - 1,000 - - - - 1,525 6,595 2,852,920 99,908 791,872 2,908,996 303,085 1,091,597 _ - _ - 142,037 - 662,131 - - 39,686 - - - 21,289 72,652 - - 246,568 6,918,740 - 381,651 72,652 - 39,686 246,568 7,060,777 - 1,065,071 (66,057) 2,852,920 60,222 545,304 (4,151,781) 303,085 26,526 (75,000) (3,043,145) (7,753) (50,000) (2,629,721) (307,431) (25,000) (75,000) (3,043,145) (7,753) (50,000) (2,629,721) (307,431). (25,000) (141,057) (190,225) 52,469 495,304 (6,781,502) (4,346) 1,526 223,416 198,796 171,917 (64,251) 10,459,143 7,262 - 223,416 198,796 171,917 (64,251) 10,459,143 7,262 $ 82,359 $ 8,571 $ 224,386 $ 431,053 $ 3,677,641 $ 2,916 $ 1,526 (Continued) -47- CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 REVENUES: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTAL REVENUES EXPENDITURES: Current operating: General government Public works Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES FUND BALANCES (DEFICITS)— BEGINNING OF YEAR FUND BALANCES (DEFICITS)— BEGINNING OF YEAR, AS RESTATED Proposition /lid to FAU C AQMD Cities $ — a — $ — S — 92,263 14,390 9,916 1,771,344 141,873 — 1,863,607 156,263 9,916 25,534 11,846 — 297,634 1,493,898 112,897 297,634 1,519,432 11,846 112,897 (297,634) 344,175 144,417 (102,981) (594,237) (436,100) — (594,237) (436,100) — (297,634) (250,062) (291,683) (102,981) (38,887) 2,418,019 345,034 321,756 (38,887) 2,418,019 345,034 321,756 FUND BALANCES (DEFICITS)—END OF YEAR S (336,521) S 2,167,957 8 53,351 $ 218,775 —48— 140,728 — - - — (203,500) 140,728 — (203,500) 140,728 751,452 (8,144,787) (3,313,007) — (8,004,059) (2,561,555) 57,756 115 689,166 (3,730) (6,501,211) (601,543) (2,599,184) 3,782 15,842,898 16,444,441 (292,886) — (2,599,184) Landscape Stormwater Miscellaneous Totals 3,897 .Earthquake Maintenance. Utility Grants June30, June 30, Fund District#1 Fund Fund 1995 1994 S 60,000 $ — $ — $ — a 4,795,744 $ 1,511,342 196,241 115 31,463 — 913,988 824,016 8,906,993 — — — 20,766,249 .19,563,027 _ _ _ — 295,357 257,037 — — 1,850,213 — 1,936,938 52,295 — 45 — '11,059 3,502,965.. 9,163,234 115 1,881,721. — 28,719,335 25,710,682. _ _ — 804,168 280,311 _. — 1,859,644 1,524,271 — — 984,095 — 1,045,070 84,389 9,246,206 — 4,960 3,730 23,507,605 21,861,699 9,246,206 — 989,055 3,730 27,216,487 23,750,670 (82,972) 115 892,666 (3,730) 1,502,848 1,960,012 140,728 — - - — (203,500) 140,728 — (203,500) 140,728 751,452 (8,144,787) (3,313,007) — (8,004,059) (2,561,555) 57,756 115 689,166 (3,730) (6,501,211) (601,543) (2,599,184) 3,782 15,842,898 16,444,441 (292,886) — (2,599,184) .3,782 — — 15,5.50,012 .16,444,441 $ (2,541,428) $ 3,897 $ 689,16fi $ (3,730) $ 9,048,801 S 15,842,898 —49— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —BUDGET AND ACTUAL REVENUES: .Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTALREVENUES EXPENDITURES: Current operating.. General government Public works Community development .Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): .Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDIIURESAND OTHER FINANCING USES FUND BALANCES (DEFICITS) - ALL SPECIAL REVENUE FUNDS For the year ended June 30, 1995 Bikeway Bridge and Thoroughfare Variance Variance. Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 150.000 S — f (150,000) S 225,000 S 347,519 S 122,519 10,000 27,771 17,771 57.000 136,033 79,033 40,000 52,981 12.981 - - - 200,000 80.752 (119.248) 282.000 483.552 201,552 498,490 128.504. 369,986 - - 498,490 128,504. 369,986 - - - (298,490) (47,752) 250,738 282,000 483,552 201,552 (145,000) (145,000) - - 145,00 (145,000) - - (298,490) (192,752) 105,738 282,000 483,552 201.552 BEGINNING OF YEAR 389,304 389,304 - 3,549,878 3,549.878 PRIOR PERIOD ADJUSTMENT (292,886) 292,886 — - - .FUND BALANCES (DEFICITS) - BEGINNING OF YEAR. AS RESTATED 96,418 96,418 - 3,549,878 .3,549,878 FUND BALANCES (DEFICITS) - END OF YEAR S (202.072) S (96.334) S 105.738 S 3.831.878 $ 4,033.430 S 201,552 —50— _ Developer Fees - 2,193,745 Gas Tax 371.481 Park Improvement - - Variance 4,574,339 3,629,679 317,848 Variance Variance 1001000 72,652 Favorable 8,204,018 4,574,339 Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 6.281.600 S 4,383,184 $ (1,898,416) S - 3 - $ - $ 200,000 S - $ (200,000) 15,000 43,756 28,756 5,000 36,137 31,137 - 6,595 6,595 - - - 2,524.900 2,553,636 28,736 - - - - _ - 20,000 8,489 (11,511) - - - 6,296,600 4,426,940 (1.869.660) 2,549.900 2,598.262 48.362 200,000 6,595 (193,405) _ - - 2,193,745 1,822.264 371.481 - - - 8,204.018 4,574,339 3,629,679 317,848 25.826 292,022 1001000 72,652 27,348 8,204,018 4,574,339 3,629,679 2,511.593 1,848,09D 663,503 100.000 72,652 27,348 (1,907,418) (147,399) 1,760.019 38,307 750.172 711,865 100,000 (66,057) (166,057) 100.620 - (100,620) - - (562,639) (562,639) (109,900) (65.261) 44,639 (75,000) (75,000) (562,639) (562,639) (9,280) (65,261) (55.981) (75.000) (75,000) - (1,907,418) (710,038) 1,197,380 29.027 684,911 655.884 25,000 (141,057) (166,057) 33,604 33,604 33,604 33.604 - 423,309 423.309 223,416 223,416 - 423,309 423,309 - 223,416 223,416 S (1,873,814) S (676,434) S 1.197,380 S 452.336 S 1,108,220 S 655,884 S 248.416 $ 82,359 S (166.057) (Continued) -51- CITY OF SANTA CIARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL REVENUES: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTALREVENUES EXPENDITURES: Current operating: General government Public works Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OFREVENUES .AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES (DEFICITS) - BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES (DEFICITS) - BEGINNING OF YEAR. AS RESTATED FUND BALANCES (DEFICITS) - END OF YEAR ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30, 1995 Proposition A Special Assessment Variance Variance Favorable. Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S - S - S - $ 2,700 S 5,041 S 2.341 -- 43,309 43,309 2,000 8.142 6,142 2,191,930 2,808,611 616,681 - - - _ - - 100,050 86,725 (13,325) - 1,000 .1,000 - - - 2.191,930 2.852.920 660,990 104,750 99,908 (4,842) - - - 109,050 39,686 69,364 140,000 140,000 - - - 140,000 - 140,000 109.050 '39,686 69,364 2,051,930 202,920 800,990 (4,300) 60,222 64,522 (1.515.700) (3.043.145) (1,527,445) - (7,753) (7.753) (1,515,700) (3,043,145) (1,527,445) - (7,753) (7,753) 536,230 (190.225) (726.455) (4,300) 52.469 56,769 .198,796 .198.796 171,917 171,917 - 198,796 198,796 - 171,917 171,917 -7- S 735.026 S 8.571 E (726.455) 5 167.617 5 224,386 S 56,769 -52- - - - 1,461.678 246.568 11215.110 State Park 142,037 6,918,740 33.963 - - - 4,878,269 - - - TDA Funds 11,973,009 7,060,777 Traffic Safety (50,000) - (1.535,000) Variance (1,094,721)3( 47.000)30( 7.431) Variance Variance Favorable (41.678) 495,304 Favorable (6,781,502) 4,041,531 - Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) s - s - s - $ - : - $ - S - s - s - - 5,830 5,830 125,000 254,299 129,299 2.000 7,728 5,728 1.470,000 786,042 (683,958) 2.559,976 2,654,697 94,721 - - - - - _ - - - 345,000 295,357 (49,643) 791,872 (678,128) 2.684,976 2,908,996 224.020 347,000 303,085 (43.915) 1.470.000 - - - 1,461.678 246.568 11215.110 176,000 11,797,009 142,037 6,918,740 33.963 - - - 4,878,269 - - - 1,461,678 246,568 1,215,110 11,973,009 7,060,777 4,912,232 - - - 8,322 545.304 536,982 (9,288,033) (4,151,781) 5,136 252 347,000 303,085 (43,915) (50,000) (50,000) - (1.535.000) (2,629,721) (1,094,721) 347.00 (307,431) 39,569 (50,000) (50,000) - (1.535,000) (2,629.721) (1,094,721)3( 47.000)30( 7.431) 39,569 (41.678) 495,304 536,982 (10,823.033) (6,781,502) 4,041,531 - (4,346) (4,346). (64,251) (64,251) - 10,459,143 10,459,143 - 7,262 7,262 (64,251) (64,251) - 10,459,143 10,459,143 - 7,262 7,262 S (105.929) $ 431.053 S 536.982 S (363,890) S 3,677,641 S 4,041,531 S 7,262 S 2,916 (Continued) -53- CTIY OF SANTA CIARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30, 1995 REVENUES: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTALREVENUES EXPENDITURES: Current operating: General government Public works Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) .EXPENDITURES AND .OTHER FINANCING USES FUND BALANCES (DEFICITS) - BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES (DEFICITS) - BEGINNING OF YEAR, AS RESTATED FUND BALANCES (DEFICITS)— END OF YEAR CDBG PAU 7.314,688 662,131 Variance Variance 21,289 1,711 — — — Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 6,394.736 1,090,072 (5,304,664) - - — - 1,525 1,525 - - - 6.394,736 1.091.597 (5.303.139) — — — 7.314,688 662,131 6,652.557 — — 23,000 21,289 1,711 — — — 660,090 381.651 278,439 594,567 297,634 296,933 7,997,778 1.065,071 6,932,707 594,567 297,634 296,933 (1,603,04Z) 26,526 1,629.568. (594,567) (297,634) (38,259) (25.000) 13,259 (38.259) (25.000) 13.259 296.933 (1.641.301) 1.526 1,642.827 (594,567) (297.634) 296,933 (38,887) (38,887) — — (38,887) (38,887) — S (1.661,301) S 1.526 S 1,642.827 S (633.454) 5 (336.521) S 296,933 —54— Proposition C AQMD Aid to Cities Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) S - S -' $ - S - S. - S - S - S - S - 50,000 92,263 42,263 5,000 14,390 9,390 - 9,916 9,916 5.104,776 1,771,344 (3,333,432) 125,325 141,873 .16,548 - - - 5,154,776 1,863,601 (3.291,169) 130.325 156,263 25,938 - 91916 9,916 145,870 4,847,724 25,534 1,493,898 120,336. 3;353,826' 12,500 - 11,846 - 654 - - 318,000 - 112,897 205,103 .4,993,594 1,519,432 3,474,162 12.500 11,846 654 318,000 112,897 205,103 161,182 344,175 182,993 117,825 144,417 26,592 (318,000) (102.981) 215,019 (1,432,900) (594.237) 8384663 (565,000) (436,100) 128.900 - - - (1,432.900) (594.237) 838.663 (565,000) (436,100) 128.900 - - (1,271,718) (250,062) 1,021.656 (447,175) (291,683) 155,492 (318,000) (102,981) 21S.019 2,418,019 2,418,019 -.. 345.034 345,034. - 321,756 321,756 - 2,418,019 2,418.019 - 345,034 345,034 321,756 321,756 S 1,146,301 S 2.167,957 S 1,021.656 S' (102,141) S 53.351 S 155.492 S 3,756 S 218.775 S 215,019 (Continued) -55- CITY OF SANTA CIARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES — BUDGET AND ACTUAL REVENUES: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTAL REVENUES EXPENDITURES: Current operating: General government Public works Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES (DEFICITS) - BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES (DEFICITS)- BEGINNING DEFICITS)BEGINNING OF YEAR AS RESTATED FUND BALANCES (DEFICITS) END OF YEAR ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30, 1995 23,102,488 9,246.206 .13.856,282 — — — 23.102,488 9,246,206 13,856,282 — — — (17,348,108) (82,972) 17,265,136 79,258 140,728 61,470 79,258 140,728 61,470 9.700 115 (9,585) (17,268.850) Earthquake Fund Landscape Maintenance District #1 115 (9,585) Variance Variance (2699,184) (2,599,184) — Favorable 3,782 — Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 100.000 S 60,000 S (40,000) S — 5 — $ - - 196,241 196,241 500 115 (38S) 5.654,380 8,906,993 3,252,613 — — — 9,200 — (9,200) 115 (9,585) 5.754,380 9.163,234 3,408.854 9,700 23,102,488 9,246.206 .13.856,282 — — — 23.102,488 9,246,206 13,856,282 — — — (17,348,108) (82,972) 17,265,136 79,258 140,728 61,470 79,258 140,728 61,470 9.700 115 (9,585) (17,268.850) 57,756 17.326.606 9,700 115 (9,585) (2699,184) (2,599,184) — 3,782 3,782 — (2,599,184) (2.599.184) — 3,782 3,782 — S (19.868,034) S (2.541.428) S 174326,606 $ 13,482 S 3,897 S (9,585) —56— Stormwater Utility Fund Miscellaneous Grants Fund Totals Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) 3 — 3 — S — S — S — $ — S 6,959,300 S 4,795,744 $ (2,163,556) — 31.463 31,463 — — — 271,5DO ..913,988 642,488 — — — 272,000 — (272,000) 26,338,023 20,766,249 (5,571,774) — 1.751,550 _ _ — 345,000 295.357 (49,643) 2,043,500 1,85D.213 (193.287) — — — 2,152.750 1,936,938 (215,812) — 45 45 — — — 20,000 11,059 (8,941) 2,043,500 1.881,721 (161,779) 272,000 — (272,000) 36.086,573 28,719.335 (7,367,238) (2,000) 892,666 894,666 — (3.730) (3.730) (28.247,692) 1,502,848 29.750,540 — — — - 179.878 140,728 (39,150) (203.500) (203.500) — — — (5,668,759) (8.144,787) (2,476.028) (203,500) (203,500) — — — (5.488,881) (8,004,059) (2,515,178). (2,000) 689,166 691,166 — (3.730) (3,730) (33,736,573) (6,501,211) 27,235,362 — — — — 15,842,898 15,842,898 — (292,886) (292,886) — 15,550,012 15,550,012 — S (2.000) S 689,166 S 691,166 S — S (3,730). 3 (3,730) S (18186,561) S 9,048,601 3 27,235.362 -57- 7,490,688 804,168 6,686,520 2,352,115 1,859,644 492,471 11619,500 984,095 635,405 — — — 1.751,550 1.045,070 706,480 426,ODO 4,960 421,040 272.000 3.73D 268,270 52,739,912 23,507,605 29,232.307 2,045,500 989,055 1,056,445 272.000 3,130 268,270 64,334,265 27.216.487 37,117,778 (2,000) 892,666 894,666 — (3.730) (3.730) (28.247,692) 1,502,848 29.750,540 — — — - 179.878 140,728 (39,150) (203.500) (203.500) — — — (5,668,759) (8.144,787) (2,476.028) (203,500) (203,500) — — — (5.488,881) (8,004,059) (2,515,178). (2,000) 689,166 691,166 — (3.730) (3,730) (33,736,573) (6,501,211) 27,235,362 — — — — 15,842,898 15,842,898 — (292,886) (292,886) — 15,550,012 15,550,012 — S (2.000) S 689,166 S 691,166 S — S (3,730). 3 (3,730) S (18186,561) S 9,048,601 3 27,235.362 -57- DEBT SERVICE FUNDS The Debt Service Funds are used to account for accumulation of resources for, and payment of, interest and principal on long-term debt. Funds included are: General City Debt - To account for principal and interest payment on City's general long -tens obligations. Public Financing Authority - To account for principal and interest payments on the 1991 Revenue Bonds issued by the Santa Clarita Public Financing Authority. ASSETS: Cash and investments with fiscal agent FUND BALANCES: Reserved for debt service CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS June 30, 1995 With comparative totals for June 30, 1994 General City Debt Public Totals Financing June 30, Authority 1995 June 30, 1994 $ — $ 2,273,257 $ 2,273,257 $ 2,260,473 $ — $ 2,273,257 $ 2,273,257 $ 2,260,473 —58— O O CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 REVENUES: Use of money and property EXPENDITURES: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Operating transfers in EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES FUND BALANCES — BEGINNING OF YEAR FUND BALANCES— END OF YEAR General Public Totals City Financing June 30, June 30, Debt Authority 1995 1994. $ — $ 105,808 $ 105,808 $ 57,497 271,167 825,000 1,096,167 785,000 192,880 1,395,9 99 1,588,879 1,686,0 80 464,047 2,220,999 2,685,046 2,471,080 (464,047) (2,115,191) (2,579,238) (2,413,583) 464,047 2,127,975 2,592,022 2,386,278 12,784 12,784 (27,305) 2,260,473 2,260,473 2,287,778 $ — $ 2,273,257 $ 2,273;257 $ 2,260,473 —59— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL ALL DEBT SERVICE FUNDS For the year ended June 30, 1995 General City Debt Variance Favorable Budget Actual (Unfavorable) REVENUES: Use of money and property $ — $ $ — EXPENDITURES: Principal retirement — 271,167 (271,167) Interest and fiscal charges 359,300 192,880 166,420 TOTAL EXPENDITURES 359,300 464,047 (104,747) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (359,300) (464,047) (104,747) OTHER FINANCING SOURCES, Operating transfers in 359,300 464,047 104,747 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES — — FUND BALANCES BEGINNINGOFYEAR — — — FUND BALANCES— END OF YEAR —60— Public Financing Authority Variance Favorable Budget Actual (Unfavorable) Totals Variance Favorable Budget Actual (Unfavorable) $ — $ 105,808 $ 105,808 $ — $ 105,808 $ 105,808 825,000 825,000 — 825,000 1,096,167 (271,167) 1,395,999 1,395,999 — 1,755,299 1,588,879 166,420 2,220,999 2,220,999 — 2,580,299 2,685,046 (104,747) (2,220,999) (2,115,191) 105,808 (2,580,299) (2,579,238) 1,061 404,700 2,127,975 1,723,275 764,000 2,592,022 1,828,022 (1,816,299) 12,784 1,829,083 (1,816,299) 12,784 2,260,473 2,260,473 — 2,260,473 2,260,473 1,829,083 $ 444,174 $ 2,273,257 $ 1,829,083 $ 444,174 $ 2273,257 $ 1,829,083 —61— CAPITAL PROJECT FUNDS The Capital Project Funds are used to account for the acquisition or construction of the City's major capital facilities, other than those financed by proprietary funds. Redevelopment Agency - To account for the construction of all capital projects located within the project area financed by the Redevelopment Agency. Community Facilities District No. 92-1 - To account for capital asset construction within community facilities district No. 92-1. 1991 Revenue Bonds - To account for capital asset acquisition and construction from the 1991 Revenue Bond proceeds issued by the Santa Clarity Public Financing Authority. CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL CAPITAL PROJECT FUNDS June 30, 1995 With comparative totals for June 30, 1994 ASSETS Cash and investments Cash and investments with fiscal agent Interest receivable TOTAL AS SETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued liabilities FUND BALANCES (DEFICITS): Unreserved: Designated for capital improvements Undesignated TOTALFUND BALANCES (DEFICITS) TOTAL LIABILITIES AND FUND BALANCES Community Facilities 1991 Totals Redevelopment .District Revenue June 30, June 30, Agency No. 92-1 Bonds 1995 1994 $ — S — $ 6,766,103 $ 6,766,103 S 6,784,219 2,441,949 — 2,441,949 2,343,455 — 30,764 30,764 7,796 $ — $ 2,441,949 $ 6,796,867 $ 9,238,816. $ 9,135,470 $ 17,885 S — S 202,137 S 220,022 $ 278,819 2,441,949 6,594,730 9,036,679 8,943,525 (17,885) — — (17,885) (86,874) (17,885) 2,441,949 6,594,730 9,018,794 8,856,651 S — S 2,441,949 $ 6,796,867 S 9,238,816 $ 9,135,470 —62— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECT FUNDS For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 Community EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (768,940) 98,494 73,918 (596,528) (1,593,067) OTHER FINANCING Facilities 1991 Totals Redevelopment District Revenue June 30, June 30, Operating transfers out. Agency No. 92-1 Bonds 1995 1994 REVENUES: SOURCES (USES) 837,929 — (79,258) 758,671 163,730 Use of money and property S - $ 98,494 S 319,265 $ 417,759 $ 377,082 Revenue from other agencies — — 602,209 602,209 — Contributions from OTHER FINANCING USES 68,989 property owners — — — — 111,479 Otherrevenue 95 — — 95 143 TOTAL REVENUES 95 98,494 921,474 1,020,063 488,704 EXPENDITURES: Current operating:. General government 762,299 — — 762,299 212,688 Capital outlay 6,736 — 847,556 854,292 1,869,083 TOTAL EXPENDITURES 769,035 — 847,556 1,616.591 2,081,771. EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (768,940) 98,494 73,918 (596,528) (1,593,067) OTHER FINANCING SOURCES (USES): Advances from other funds 899,399 — — 899,399 163,730 Operating transfers out. (61,470) — (79,258) (140,728) — TOTAL OTHER FINANCING SOURCES (USES) 837,929 — (79,258) 758,671 163,730 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 68,989 98,494 (5,340) 162,143 (1,429,337) FUND BALANCES (DEFICITS)— BEGINNINGOFYEAR . (86,874) 2,343,455 6,600,070 8,856,651 10,285,988 FUND BALANCES (DEFICITS)— END OF YEAR $ (17,885) $ 2,441,949 S 6,594,730 $ 9,018,794 S 8,856;651 -63— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL REVENUES: Use of money and property Revenue from other agencies Other revenue TOTAL REVENUES EXPENDITURES: Current operating: General government Capital outlay tr Sv aur rr tt ALL BUDGETED CAPITAL PROJECT FUNDS For the year ended June 30, 1995 Redevelopment Agency Variance Favorable Budget Actual (Unfavorable) s — s $ — 95 95 95 95 898,900 762,299 136,601 18,700 6,736 11,964 917,600 769,035 148,565 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (917,600) (768,940) 148,660 OTHER FINANCING SOURCES (USES): Advances from other funds Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTBER FINANCING USES FUND BALANCES (DEFICITS)—BEGINNING OF YEAR FUND BALANCES (DEFICITS)—END OF YEAR —64— 899,399 899,399 (61,470) (61,470) 837,929 837,929 (917,600) 68,989 986,589 (86,874) (86,874) — 1_(!,004,4741 S(17,885) S 986,589 1991 Revenue Bond Totals 762,299 136,601 Variance 847,556 3,147,196 4,013,452 Variance 3,159,160 Fawrable $ 6,594,730 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 3,295,761 $. — $ 319,265 $ 319,265 $ — $ 319,265 $ 319,265 — 602,209 602,209 — 602,209 602,209 — — — 95 95 — 921,474 921,474 — 921,569 921,569 — — — 898,900 762,299 136,601 3,994,752 847,556 3,147,196 4,013,452 854,292 3,159,160 $ 2,526,060 $ 6,594,730 $ 4,068,670 $ 1,521,586 $ 6,576,845 $ 5,055,259 3,994,752 847,556 3,147,196 4,912,352 1,616,591 3,295,761 (3,994,752) 73,918 4,068,670 (4,912,352) (695,022) 4,217,330 — — 899,399 899,399 (79,258). (79,258) (79,258) (140,728) (61,470) (79,258) (79,258) — (79,258) 758,671. 837,929 (4,074,010) (5,340) 4,068,670 (4,991,610) 63,649 5,055,259 6,600,070 6,600,070 — 6,513,196 6,513,196 — $ 2,526,060 $ 6,594,730 $ 4,068,670 $ 1,521,586 $ 6,576,845 $ 5,055,259 —65— TRANSIT ENTERPRISE FUND Transit Enterprise Fund - To account for the operation of the City's local public transit bus system. CITY OF SANTA CLARITA COMPARATIVE BALANCE SHEET TRANSIT ENTERPRISE FUND June 30, 1995 and 1994 ASSETS CURRENT ASSETS: Accounts receivable Due from other governments Prepaid items TOTAL CURRENTS ASSETS RESTRICTED ASSETS: Cash and investments with fiscal agent Deposit Deferred bond issue costs TOTAL RESTRICTED ASSETS PROPERTY, PLANT AND EQUIPMENT (NET) TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities Due to other funds Current portion of long-4erm debt TOTAL CURRENT LIABILITIES LONGTERM DEBT, NET OF CURRENT PORTION TOTAL LIABILITIES FUND EQUITY (DEFICIT): Contributed capital Retained earnings: Reserved for debt service Unreserved Total retained earnings (deficit) TOTAL FUND EQUITY (DEFICIT) TOTAL LIABILITIES AND FUND EQUITY —66— June 30, June 30, 1995 1994 $ 6,739 $ 9,833 350,645 1,407,860 5,582 — 362,966 1,417,693 489,500 489,500 — 88,921 101,314 578,421 590,814 9,585,545 8,255,687 $ 10,526,932 $ 10,264,194 $ 863,815 $ 1,074,845 1,342,677 2,445,866 1,677,771 1,021,318 3,884,263 4,542,029 6,517,472 6,884,534 10,401, 735 11,426, 563 452,704 — 489,500 489,500 (817,007) (1,651,869) (327,507) (1,162,369) 125,197 (1,162,369) $ 10,526,932 $ 10,264,194 CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS TRANSIT ENTERPRISE FUND For the years ended June 30, 1995 and 1994 June 30, June 30, 1995 1994 OPERATING REVENUES: Transportation revenue $ 1,648,075 $ 742,901 OPERATING EXPENSES: Administrative 294,903 248,891 Transportation services 6,147,943 4,085,413 Depreciation and amortization 657,432 650,895 NET INCOME (LOSS) TOTAL OPERATING EXPENSES 7,100,278 4,985,199 (1,162,369) OPERATINGLOSS (5,452,203) (4,242,298) $ (1,162,369) NONOPERATING REVENUES (EXPENSES): Interest expense (459,683) (475,690) Intergovernmental grants 27,337 259,139 Other revenue 33,908 7,419 TOTAL NONOPERATING REVENUES (EXPENSES) (398,438) (209,132) NET LOSS BEFORE OPERATING TRANSFERS (5,850,641) (4,451,430) OPERATING TRANSERS: Operating transfers in 6,703,203 2,377,632 Operating transfers out (17,700) — TOTAL OPERATINGTRANSFERS 6,685,503 2,377,632 NET INCOME (LOSS) 834,862 (2,073,798) RETAINED EARNINGS (DEFICIT) AT BEGINNINGOF YEAR (1,162,369) 911,429 RETAINED EARNINGS (DEFICIT) AT END OF YEAR $ (327,507) $ (1,162,369) —67— CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF CASH FLOWS TRANSIT ENTERPRISE FUND For the years ended June 30, 1995 and 1994 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTI VITIE S: Acquisition of capital assets Contributed capital Intergovernmental grants Proceeds from long-term debt Principal payments on long-term debt Interest expense on longterm debt NET CASH USED BY CAPITAL AND RELATED FINANCINGACTIVITIES NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 061M (1,971,187) June 30, June 30, — 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: — (1,021,318) Operating loss $ (5,452,203) $ (4,242,298) Adjustments to reconcile operating loss to net (1,206,600) (489,500) cash used by operating activities: 489,500 489,500 Depreciation and amortization 657,432 650,895 Other revenue 33,908 7,419 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable 3,094 (9,833) (Increase) decrease in due from other governments 1,057,215 661,206 (Increase) decrease in deposit (489,500) — (Increase) decrease in prepaid items (5,582) — Increase(decrease)in accounts payable (211,031) 64,645 Total adjustments 1,045,536 1,374,332 NET CASH USED BY OPERATINGACTIVITIES (4,406,667) (2,867,966) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Increase(decrease)in due to other funds (1,103,189) 1,696,934 Operating transfers in from other funds 6,703,203 2,377,632 Operating transfers out to other funds (17,700) — NET CASH PROVIDED BY NONCAPITALFINANCINGACTIVITIES 5,582,314 4,074,566 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTI VITIE S: Acquisition of capital assets Contributed capital Intergovernmental grants Proceeds from long-term debt Principal payments on long-term debt Interest expense on longterm debt NET CASH USED BY CAPITAL AND RELATED FINANCINGACTIVITIES NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 061M (1,971,187) (933) 452,704 — 27,337 259,139 1,307,000 — (1,021,318) (989,116) (459,683) (475,690) (1,665,147) (1,206,600) (489,500) — 489,500 489,500 $ — $ 489,500 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for goods or services provided by a central service department to other City departments. Self -Insurance — To account for the financing of the City's self-insurance program. Vehicle Replacement - To account for the financing of the replacement of the City's automotive equipment. ASSETS CURRENT ASSETS: Cash and investments Interest receivable CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS June 30, 1995 With comparative totals for June 30, 1994 Totals Self Vehicle June 30, June 30, Insurance Replacement 1995 1994 $ — $ 669,621 $ 669,621 $ 550,074 5,893 5,893 4,550 TOTALASSETS $ — $ 675,514 $ 675,514 $ 554,624 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 1,022,074 $ $ 1,022,074 $ 664,693 Due to other funds 304,099 — 304,099 172,241 TOTAL LIABILITIES 1,326,173 — 1,326,173 836,934 FUND EQUITY (DEFICIT): Retained earnings—unreserved (1,326,173) 675,514 (650,659) (282,310) TOTAL LIABILITIES AND FUND EQUITY $ — $ 675,514 $ 675,514 $ 554,624 —69— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL INTERNAL SERVICE FUNDS For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 OPERATING REVENUES: Charges for services OPERATING EXPENSES: Services and supplies OPERATING INCOME (LOSS) NONOPERATING REVENUES: Interest income NET INCOME (LOSS) BEFORE OPERATING TRANSFERS OPERATING TRANSFERS: Operating transfers in NET INCOME (LOSS) RETAINED EARNINGS (DEFICITS) AT BEGINNING OF YEAR RETAINED EARNINGS (DEFICITS) AT END OF YEAR Self Vehicle Insurance Replacement Totals June 30, June 30, 1995 1994 $ 443,214 $ 100,300 $ 543,514 $ 519,881 1,026,153 1,026,153 755,461 (582,939), 100,300 (482,639) (235,580) 20,590 20,590 23,863 (582,939) 120,890 (462,049) (211,717) 93,700 — 93,700 — (489,239) 120,890 (368,349) (211,717) (836,934) 554,624 (282,310) (70,593) $ (1,326,173) $ 675,514 L--(§50,6591 $ (282,310) —70— CITY OF SANTA CLARITA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS For the year ended June 30, 1995 With comparative totals for the year ended June 30, 1994 CASH FLOWS FROM OPERATINGACIIVITIES: Operating income (loss) Adjustments to reconcile operating income. (loss) to net cash provided (used) by operating activities: (Increase) decrease in interest receivable Increase (decrease) in amounts payable Total adjustments. NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Increase in due to other funds Operating transfers in from other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR Totals Self Vehicle June 30, June 30, Insurance Replacement 1995 1994 S (582,939) $ 100,300 $ (482,639) S (235,580) — (1,343) (1,343) 2,065 357,381 — 357,381 (80,254) 357,381 (1,343) 356,038 (78,189) (225,558) 98,957 (126,601) (313,769) 131,858 93,700 225,558 131,858 172,241 93,700 — 225,558 172,241 20,590 20,590 23,863 119,547 119,547 (117,665) — 550,074 550,074 667,739 $ — S 669,621 $ 669,621 $ 550,074 —71— FIDUCIARY FUND TYPES - TRUST AND AGENCY FUNDS The Expendable Trust Fund accounts for assets and activities restricted to a specific purpose in accordance with a formal intent. General Trust - To account for funds held in trust by the City restricted for use only in accordance with a trust agreement. The Agency Fund accounts for assets held by the City as an agent for individuals. Deferred Compensation To account for monies held by the City for restricted cash and investments of the ICMA deferred compensation plan. Community Facilities District No. 92-1 To account for monies held to account for debt service requirements of the Community Facilities District No. 92-1. CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL TRUST AND AGENCY FUNDS June 30, 1995 With comparative totals for June 30, 1994 Expendable Trust .Agency Totals Community Facilities General. Deferred District June 30, June 30, Trust Compensation No. 92-1 1995 1994 ASSETS Cash and investments $ 353,650 S S - $ 353,650 S 470,524 Cash and investments with fiscal agent. — 2,345,377 2,088,044. 4,433,421 3,646,305 Accounts receivable 211,166 — 211,166 10,903 Interest receivable 60 — — 60 118 TOTALASSETS $ 564,876 $ 2,345,377 $ 2,088,044 $ 4,998,297 $ 4,127,850 LIABILITIES Accounts payable and accrued liabilities $ 16,956 S — $. — $ 16,956 $ 87,614 Deposits 547,920 — 2,088,044 2,635,964 2,398,512 Deferred compensation payable — 2,345,377 — 2,345,377 1,641,724 TOTAL LIABILITIES $ 564,876 S 2,345,377 S 2,088,044 S 4,998,297 S 4,127,850 -72- CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EXPENDABLE TRUST FUND For the years ended June 30, 1995 and June 30, 1994 REVENUES: Other revenue EXPENDITURES: Current operating: Public works EXCESS OF REVENUES OVER EXPENDITURES FUND BALANCE—BEGINNING OF YEAR FUND BALANCE—END OF YEAR —73— June 30, June 30, 1995 1994 $ 510,191 $ 363,080 510,191 363,080 CITY OF SANTA CLARITA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALLAGENCYFUNDS For the year ended June 30, 1995 DEFERRED COMPENSATION ASSETS: Cash and investments with fiscal agent LIABILITIES: Deferred compensation payable COMMUNITY FACILITIES DISTRICT NO.92-1 ASSETS: Cash and investments with fiscal agent LIABILITIES: Deposits Balance Balance at at July 1, June 30, 1994 Additions Deletions 1995 $ 1,641,724 $ 760,248 $ 56,595 $ 2345,377 $ 1,641,724 $ 760.248 $ 56,595 $ 2,345,377 $ 2,004,581 $ 1,811,848 $ 1,728,385 $ 2,088,044 $ 2,004,581 $ 1,811,848 $ 1,728,385 $ 2,088,044 Q C� Q OJ ACCOUNT GROUPS General Fixed Assets To account for capital assets acquired by the City for general City purposes and which are not accounted for in proprietary fund operations. General Lone Term Debt - To account for the City's long-term debt not reported in proprietary fund operations. U Q U Q (? C7 O CITY OF SANTA CLARITA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE June 30, 1995 and 1994 GENERAL FIXED ASSETS: Land and improvements Buildings Equipment TOTAL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE: Donation of general fixed assets from the County of Los Angeles, at estimated fair market value General fund TOTAL INVESTMENT IN GENERAL FDCED ASSETS —75— June 30, June 30, 1995 1994 $ 25,897,515 $ 25,897,515 13,487, 501 12,763, 828 5,650,643 5,171,108 $ 45,035,659 $ 43,832.451 $ 12,448,203 $ 12,448,203 32,587,456 31,384,248 $ 45,035,659 $ 43,832,451 CITY OF SANTA CLARITA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1995 FUNCTION AND ACTIVITY: General government Public safety Public works Parks and recreation Community development TOTAL GENERAL FIXED ASSETS Land and Improvements Buildings Equipment Totals $ '12,289,272 $ 10,092,834 $ 3,397,291 $ 25,779,397 — — 11,330 11,330 — 178,910 1,268,433 1,447,343 13,608,243 2,156,233 660,516 16,424,992 1,059,524 313,073 1,372,597 $ 25,897,515 $ 13,487,501 $ 5,650,643 $ 45,035,659 —76— CITY OF SANTA CLARITA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the year ended June 30, 1995 FUNCTION AND ACTIVITY: General government Public safety Public works Parks and recreation Community development TOTAL GENERAL FDs'ED ASSETS General General Fixed Assets Fixed Assets July 1, 1994 Additions Deletions June 30, 1995 $ 25,612,017 $ 167,380 $ — $ 25,779,397 5,292 6,038 — 11,330 1,217,037 230,306 — 1,447,343 16,307,769 117,223 — 16,424,992 690,336 682,261 — 1,372,597 $ 43,832,451 $ 1,203,208 $ — $ 45,035,659 —77— CITY OF SANTA CLARITA COMPARATIVE SCHEDULE OF GENERAL LONGTERM DEBT June 30, 1995 and 1994 AMOUNT AVAILABLE AND TO BE PROVIDED FOR PAYMENT OF GENERAL LONG-TERM DEBT: Amount available for retirement of longterm debt Amount to be provided for payment of long-term debt TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED FOR PAYMENT OF GENERAL LONGTERM DEBT GENERAL LONG-TERM DEBT PAYABLE: 1991 Revenue Bonds—Public Financing Authority Notes payable Advance to Santa Clarita Redevelopment Agency Compensated absences TOTAL GENERAL LONGTERM DEBT PAYABLE —78— June 30, 1995 June 30, 1994 $ 2,273,257 $ 2,260,473 23,220, 801 22,939,451 $ 25,494,058 $ 25,199,924 $ 20,580,000 $ 21,405,000 3,435,724 3,247,436 1,063,129 163,730 415,205 383,758 $ 25,494,058 $ 25,199,924 10 W 0 0 0 0 0 0 10 CITY OF SANTA CLARITA General Governmental Revenues by Source (1) All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1995 NIA prior to incorporation of 12/15/87 (1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds Source: City Finance Department -79- Contribution Use of From Fiscal Licenses Developer Money Fines & Charges for Property Year Taxes & Permits Fees & Property. Forfeits Services Owners TOTAL 1987-88 S 4,448,732 $ 3,616,504 $ 573,822 $ 128,544 S 191,774 $'. 100,645 $ -0- $ 9,060,021 1988-89 24,314,813 3,357,887 241,880 1,273,718 599,019 233,122 -0- 30,020,439 1989-90 26,834,186 3,794,874 1,423,741 2,068,275 709,736 1,122,268 -0- 35,953,080 1990-91 30,991,900 2,094,528 1,351,546 2,168,902 686,889 1,370,229 -0- 38,663,994 1991-92 33,050,804 2,113,408 904,210 2,914,787 401,793 1,825,496 -0- 41,21 D,498 1992-93 37,333,210 1,299,844 2,799,645 2,399,228 :317,540. 1,987,493 16,685,720 62,822,680 1993-94 43,999,218 1,177,963 1,511,342 1,879,079 329,687 5,369,490 111,479 54,378,258 1994-95 49,191,936 1,272,109 4,795,744 2,339,564 418,353 4,444,838 -0- 62,462,544 (1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds Source: City Finance Department -79- CITY OF SANTA CLARITA General Governmental Expenditure by Function (1) All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1995 WA prior to incorporation of 12/15187 Fiscal General Public Public Parks & Community Mainte- Capital Year Government Safety Works Recreation Develop. nance Outlay 1987.88 $ 535,975 $2,329,899 $1,235,438 $ 237,932 $ 150,032 $ 60,298. $ 80,367 1988-89 1,982,151 7,281,724 3,079,575 1,084,379 680,954 -0- 1,897,366 1989.90 3,721,584 7,047,496 7,174,219 2,448,765 1,421,896 -0- 11,589,753 1990-91 4,337,791 7,498,105 6,427,528 3,818,211 1,871,961 -0- 9,591,664 1991-92 3,566,198 8,419,797 5,293,024 5,609,782 5,021,236 -0- 24,424,817 1992-93 3,491,725 8,389,392 5,591,281 5,869,522 4,587,470 -0- 25,636,052 1993-94 4,119,942 9,256,950 4,686,014 5,676,932 3,895,879 -0- 26,201,540 1994-95 5,185,377 10,116,169 5,784,519 6,414,630 4,747,081 -0- 25,487,576 (1) Includes General,Special Revenue, Capital Projects and Expendable Trust Funds Source: City Finance Department Debt Service TOTAL $ 62,704 $ 4,692,635 852,561 16,858,710 1,149,551 34,553,266 403,909 33,949,169 3,548,433 55,883,287 4,243,319 57,808,761 2,471,080 56,308,337 2,685,046 60,420,398 CITY OF SANTA CLARITA Assessed and Estimated Actual Values of All Taxable City Property June 30,1995 All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1995 (Numbers expressed in thousands) ' The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30,1988. Source: City Finance Department om Common Public Full Fiscal Property Utilities Unsecured Market Percent Year Valuation Valuation Valuation Valuation Increase * 1987-88 $ WA S WA $ NIA $ WA N/A 1988.89 4,061,732 7,207 N/A .4,068,939 N/A 1989-90 4,856,876 5,592 141,561 .5,004,029 23% 1990-91 5,644,003 6,270 .299,042 5,949,315 19% 1991-92 6,761,266 9,625 351,717 7,122,608 20% 1992-93 7,170,561 366 342,726 7,513,653 5% 1993-94 7,371,712 1,476 338,205. 7,711,393 3% 1994-95 7,659,425 1,900 347,743 8,007,168 4% ' The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30,1988. Source: City Finance Department om 0 0 0 0 CITY OF SANTA CLARITA 0 0 Schedule of Direct and Overlapping Bonded Debt 0 0 June 30,1995 � 1994-95 Assessed Valuation: $8,007,168110 DIRECT AND OVERLAPPING BONDED DEBT: %Applicable Debt 06/30/95 Los Angeles County 1.753 $ 1,237,530 Los Angeles County Building Authorities 1.753 `36,525,566 Los Angeles County Pension Obligations 1.753 44,646,723 Los Angeles County Superintendent of Schools Certificates of Participation 1.753 233,667 Los Angeles County Flood Control District 1.809 1,264,853 Los Angeles County Flood Control District Certificates of Participation '1.809 4,073,776 Los Angeles County Sanitation District #23 and Authorities 0.105 6,862 Los Angeles County Sanitation District #26 and Authorities 85.191 14,247,897 Los Angeles County Sanitation District #32. and Authorities 71.654 9,119,130 Castaic Lake Water Agency 73.647 5,155,290 Newhall County Water District, I.D. #2 (Sewer and Water Issues) 83.818-85.883 1,418,243 Santa Clama Community College District 73.246 1,472,245 William S. Hart Union High School District and Certificates of Participation 73.232 1,420,701 William S. Hart Union High School District Community Facilities District #87.1 100. 4,683,691 Castaic Union School District and Certificates of Participation 31.688 6,727,400 Newhall School District and Certificates of Participation 86.284 2,162,296 Saugus Union School District Certificates of Participation 72.318 10,453,181 Sulphur Springs Union School District and Certificates of Participation 77.081 25,088,324 Los Angeles Community College District and Unified School District Certificates of Participation 0.001 2,902 City of Santa Clanta Certificates of Participation 100.000 20,580,000 City of Santa ClaritaCommunity Facilities District 492.1. 100.000 19.690,000 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $210,210,279. Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties in Marina del Rey) 2.362,781 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $207.847,496 Ratios to Assessed Valuation: Direct Debt ($20,580,000) 0.260/6 Total Gross Debt 2.630/6 Total Net Debt 2.600/6 STATE SCHOOL BUILDING AID REPAYABLE AS OF 06130/95: $227. Source: California Municipal Statistics, Inc. , October 30, 1995 CITY OF SANTA CLARITA Schedule of Legal Debt Margin .June 30,1995 Net Assessed Value of All Taxable Property $8,007,168,110. Legal Debt Limit - 15% of Total Assessed Valuation $1.201.075.216 Section 43605 of the Government Code of the State of California limits the amount of Indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. Source: City Finance Department of CITY OF SANTA. CLARITA Property Tax Levies and Tax Collections All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1995 NOTE: 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.. Source: City Finance Department �� Total Total Current Fiscal Year Current Levy Collections 1987-88. NIA NIA 1988-89 $2,628,992 $2,457,851 1989.90 2,673,787 2,515,423 1990-91 3,396,903 3,159,977 1991-92 3,992,654 3,704,424 1992-93 3,674,709 3,410,769 1993-94 3,807,415 3,557,146 1994-95 3,854,637 3,676,538 NOTE: 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.. Source: City Finance Department �� CITY OF SANTA CLARITA Insurance in Force June 30,.1995 AMOUNT OF CARRIER POLICY COVERAGE COVERAGE TERM Insurance Company of the West CSR117475005 Public Entity $1,000,000 03/01195.03/01/96 General Liability & Auto Liability Insurance Company of the West ESR117475105 Excess Public 9,000,000 03/01/95-03/01196 Entity General Liability & Auto Liability Planet Insurance Company 1¢1813718 Extended Reporting 900,000 12115/90 -unlimited Endorsement Planet Insurance Company KR1735681. Extended Reporting 4,000,000 12/15/90 -unlimited Endorsement Hartford Steam Boiler & LA993059007 Property Damage unlimited 03101/95-03101/96 Inspection Insurance Company Business Interruption & Extra Expense 12 months Scottsdale Insurance Company CLS310237 "Special Events" Liability 2,000,000 10/16/94-10/16/95 General Aggregate 2,000,000 10/16194-10/16/95 Products/Completed Operations 1,000,000 10116/94-10/16/95 Each Occurrence 1,000,000 10/16/94-10116/95 Personal/Advertising Injury 1,000,000 10116!94-10/16/95 Fire Legal Liability 50,000 10116/94-10/16/95 St. Paul Fire & Marine 400HV9733 Public Official 100,000 08105194-08/05/95 Bondfor City Manager St. Paul Fire & Marine 400JH1797 Public Official 100,000 02/18195-02118/96 Bond for Assistant City Manager St. Paul Fire & Marine 400HV9732 Public Official 50,000 08/05/94-08/05/95 Bond for City Clerk St. Paul Fire & Marine 400JM3404 Public Official 100,000 08106/94-08106/95 Bond for Admin. Assistant-CDBG -85- . CITY OF SANTA CLARITA Insurance in Force (continued) June 30,1995 Great American Insurance Company FS7316338 Public Official 300,000 05111/95-05/11/96 Bond for Finance Director - State Compensation Fund 1060671 Worker's Compensation 3,000,00005/01195-05/01/96 Reliance Insurance Company OBB57092202 Business Income 4,500,000 03/01/95-03/01/96 Reliable Insurance Company 06855186603 Building 15,473,000 03/01/95-03/01/96 Personal Property 1,374,500 Employee Dishonesty 100,000 Valuable Papers 500,000 Mini Computer 852,801 Fine Arts 5,000 Contractors Equipment 284,812 Miscellaneous Property 582,995 Automobile Liability 250,000 • UninsuredNnderinsured Motorist 250,000 ' Medical Payments 5,000 • CompJCollision Self -Insured Houston Casualty Insurance HP12710 Difference in 4,000,000 11126/94-11/26195 Company Conditions American National Fire IMP706237704 Excess Flood 10,000,000 11/26/94-11/26/95 RLI Insurance Company IMF018855 Excess Earthquake 5,000,000 12/15/94-12115/95 Coverage Excess 5,000,000 Pacific Insurance Company, LTD. ZG0002367 Earthquake 2,500,000 12115194-12115195 Coverage Part of 5,000,000 Westchester Fire Insurance Co. DXL631609 Excess Earthquake 5,000,000 12115/94-12115/95 Excess $7,500,000 . On selected vehicles only Source: City Risk Management CITY OF SANTA CLARITA Demographic Statistics All Fiscal Periods From December 15,1987 (Date of Incorporation) to June 30,1995 Fiscal Number of Year Square Miles Housing Units Population— '1987-88 39.40 36,006 147,228 1988-89 39.40 38,278 147,228 1989-90 39.70 39,280 147,228 1990-91 41.98 44,387 147,228 1991-92 41.98 44,904 147,228 1992-93 42.72 45,306 147,228 1993-94 42.80 46,281 147,228 1994.95 42.88 46,328 147,228 Year of Incorporation. "At the time of incorporation, the City's population is stated at three times the registered voters. This figure remains valid for eight years according to State law. Source: City Finance Department WN CITY OF SANTA, CLARITA Principal Sales Taxpayers and Major Employers June 30,1995 Principal Taxpayers Frontier Chryslerlroyota Home Depot Lucky Food Centers Magic Ford Price Club Robinsons -May Scott Irvin Chevrolet Geo Sears Roebuck & Co. Target Stores Valencia Dodge Isuzu Employment Products/Services 120 Car Dealership 170 Building Materials Store 316 Grocery. Store 308 Car Dealership 137 Wholesale Store 200 Department Store 81 Car Dealership 168 Department Store 260 Department Store 170 Car Dealership Source: City Finance Department, State Board of Equalization no -89- Fiscal Number of Construction a O G Units 2 Value O $ NIA* 809,891 CITY OF SANTA CLARITA 1987-88 WA' $ N/A* WA' $ WA' O Property Value, Construction, and Bank Deposits 276' 41,698• 7,122,608 921,728 All Fiscal Periods from December 15,1987 d (Date of Incorporation) to June 30,1995 302 86,203 8,007,168 0 (Dollar Amounts Expressed in Thousands) Q O1991-92 0 Commercial Residential -89- Fiscal Number of Construction Number of Construction O Year Units 1 Value Units 2 Value G $ NIA* 809,891 O 1987-88 WA' $ N/A* WA' $ WA' O 1988-89 43' 18,090' 276' 41,698• 7,122,608 921,728 7,513,654 d 1989-90 64 21,628 302 86,203 8,007,168 1990-91 31 6,355 86 25,686 O1991-92 41 48,407 173 32,748 G 1992-93 18 5,529 202. 25,630 0 1993-94 14 3,336 193 27,250 0 1994-95 31 11,173 48 10,415,718 • During the period December 15,1987 (date of incorporation) to November, 1988, the City contracted building and safety services with the County of Los Angeles. Information is not available from this O agency at this time. Q G (1) Represents the number of new commercial buildings. Source: City of Santa Clarita C (2) Represents the number of new dwelling units. Source: City of Santa Clarita (3) Latest available date is June 30 of prior year. Source: The Findley Report. (4) Breakdown between commercial and residential property is not available at this time. 0 Q �.l -89- Total Bank Assessed Deposits (3) Valuations (4) $ 705,894 $ NIA* 809,891 4,068,939 969,355 5,004,029 1,009,961 5,949,315 1,031,996 7,122,608 921,728 7,513,654 1,097,977 7,711,393. N/A. 8,007,168 CITY OF SANTA CLARITA Property Tax Rates - Direct and Overlapping Governments (per $100 of assessed value) All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1995 The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30,1988. .Source:. Los Angeles County Tax Auditor/Controller M Los Castaic County County Fiscal Angeles Lake Water School Sanitation Flood Year General County Agency Districts Districts Control Total •1987-88 WA WA WA N/A WA WA WA 1988-89 1.000000 0.002781 0.101825 0.082829 0.002750. 0.010042 1.200227 1989-90 1.000000 0.002242 0.081833 0.062990 0.002230 0.006679 1.155974 1990.91 1.000000 0.002104 0.067713 .0.049088 .0.001879 0.005626 1.126410 1991-92 1.000000 0.001880 0.059573 0.037935 0.001457 0.005204 1.106049 1992-93 1.000000 0.001713 0.068031 0.022308 0.001045 0.004098 1.097195 1993.94 1.000000 0.001993 0.067630 0.028250 O.DO1533 0.005876 1.105282 1994.95 1.000000 0.001933 0.067630 0.028250 0.001528 0.005885 1.105286 The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30,1988. .Source:. Los Angeles County Tax Auditor/Controller M CITY OF SANTA CLARITA Miscellaneous Statistics June 30,1995 The Santa Clarita Valley is surrounded by the Santa Susana and San Gabriel mountain ranges forming a triangle that separates Santa Clarita from the San Joaquin Valley, Mojave Desert, and Angeles National Forest to the north and the Los Angeles Basin and San Fernando Valley on the south.. The Santa Clarita River flows westerly through the mountains and canyons that form the valley, a watershed area totaling approximately 490,000 acres of drainage. The Santa Clarita climate has warm, dry, and sunny summers with mild and moist winters. Rainfall averages between 15 to 18 inches annually and falls mostly between the months of November and March. Elevation of the valley floor ranges from 1,200 to 1,400 feet with the Santa Clarita Valley defined by Whitaker Peak to the north (4,148 feet), Mt. Gleason to the east (6,502 feet), and Oat Mountain to the south (3,747 feet). Type of City General Law Form of Government Council/Manager Population 147,228 Land Area .42.8 square miles Number of Local Parks 13' Water Utilities Newhall County Water Co. Santa Clarita Water Co. Valencia Water Co. Castaic Lake Water Agency Electric Utility Southern California Edison Co. Gas Utility Southern California Gas Co.. • The City of Santa Clarita has 10 completed parks,. and 3 sites reserved for future parks. Source: City Finance Department