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HomeMy WebLinkAbout1996-12-10 - AGENDA REPORTS - ANNUAL FIN RPT MGMT LETTER (2)AGENDA REPORT City Manager Approval Item to be presented by: Steve Stark CONSENT CALENDAR DATE: December 10, 1996 SUBJECT: 6-30-96 COMPREHENSIVE MANAGEMENT LETTER DEPARTMENT: Administrative Services BACKGROUND ANNUAL FINANCIAL REPORT AND The City's independent audit firm, Diehl, Evans and Company, has completed the City's annual audit for fiscal year ending June 30, 1996. 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 management as 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 6-30-96. An excerpt of this 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 6-30-96, 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. RECOMMENDATIONS 1. Receive Comprehensive Annual Financial Report and Management Letter for FYE 6-30-96. ATTACHMENTS - 6-30-96 Comprehensive Annual Financial Report - Available in the City Clerk's reading file - Attachment 1 - Audit Opinion Letter dated September 27, 1996 - Attachment 2 - Management Letter for FYE 6-30-96 s: \fin \ cafr95 \ audit.agn &PpfloWED Agenda Itema. DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 18401 VON KARMAN, SUITE 200 IRVINE, CALIFORNIA 92612-1542 (714) 757-7700 • FAX (714) 757-2707 September 27, 1996 City Council City of Santa Clarita Santa Clarita, California RODNEY K. McDANIEL. CPA MICHAEL R. LUDIN, CPA CRAIG W. SPRAKER, CPA PHILIP H. HOLTKAMP CPA THOMAS M. PERLOWSKI. CPA HARVEY J SCHROEDER. CPA • A PROFESSIONAL CORPORATION In planning and performing our audit of the general purpose financial statements of the City of Santa Clarita for the year ended June 30, 1996, 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 other 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. COMMUNITY RECOVERY AGENCY LOAN Auditor's Comment and Recommendation: The promissory note for the City's loan to the Community Recovery Agency requires interest to be charged per annum on the principal balance of the loan. We noted that interest had not been accrued since the inception of the loan. To more accurately account for the balance due by the Community Recovery Agency to the City, we recommend that interest be accrued on an annual basis. Management's Response: As part of the year-end audit process, interest was accrued from inception through June 30, 1996. The interest will be accrued on an annual basis. -1- OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W VALLEY PARKWAY, SUITE 330 CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598 (619) 729.2343 • FAX (619) 729-2234 (619) 741-3141 • FAX (619) 741-9890 INVESTMENTS Auditor's Comment and Recommendation: The City's purchase of investments and the safekeeping of the investments are done by the same bank. The investments held by the bank are kept in a legally separate department of the bank and the investments are in the name of the City in the internal records of the bank. The arrangement described above is the minimum legal requirement. The Local Agency Investment Guidelines published by the California Debt Advisory Commission recommends the use of a safekeeping service that is not related in any way to the broker/dealer who sold the investments (securities). Government agencies should strive to "perfect" the delivery of securities purchased by avoiding situations where a relationship between the broker/dealer and holder exists. Even in situations when the safekeeping function is in a subsidiary or trust department that is legally independent of its parent company, strong ties between the two may remain. In the event the bank fails, governmental agencies may have some difficulty in regaining possession of their securities. We recommend that the City use a safekeeping service that is not related in any way to the bank who sold the securities. Management Response: A request for quotations for safekeeping services is being prepared and will be completed during the 1996-97 fiscal year. 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 27, 1996. 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 the above, please do not hesitate to contact us. -2- II nm nra h an civn'TAnnvi a 11149 n an ri a l l K annrV 11,- _ .P VN�E016 i • .P VN�E016 i a SiN S� a . � W ¢. , .P VN�E016 • r • t • • • • • �. • • CITY OF SANTA CLARITA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS June 30, 1996 INTRODUCTORY SECTION: Page Number Table of Contents r Letter of Transmittal iv GFOA Certificate of Achievement for Excellence in Financial Reporting xviii CSMFO Certificate of Award for Outstanding Financial Reporting xix Officials of the City of Santa Clarita xx Organizational Chart xxi Map of the City xxii 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 12-41 Supplementary Information: General Fund: Comparative Balance Sheet 42 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 43 CITY OF SANTA CLARTTA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (CONTINUED) June 30, 1996 Page Supplementary Information (Continued): Number Special Revenue Funds: Combining Balance Sheet 44-47 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 48-51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Special Revenue Funds 52-60 Debt Service Funds: Combining Balance Sheet 61 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 63-64 Capital Project Funds: Combining Balance Sheet 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Budgeted Capital Project Funds 67-68 Transit Enterprise Fund: Comparative Balance Sheet 69 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings 70 Comparative Statement of Cash Flows 71 Internal Service Funds: Combining Balance Sheet 72-73 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 74-75 Combining Statement of Cash Flows 76-77 CITY OF SANTA CLARrFA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (CONTINUED) June 30, 1996 Page Numbe Supplementary Information (Continued): Fiduciary Fund Types - Trust and Agency Funds: Combining Balance Sheet 78 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance - Expendable Trust Fund 79 Statement of Changes in Assets and Liabilities - All Agency Funds 80 Account Groups: General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets by Source 81 Schedule of General Fixed Assets by Function and Activity 82 Schedule of Changes in General Fixed Assets by Function and Activity 83 General Long -Term Debt Account Group: Comparative Schedule of General Long -Term Debt 84 STATISTICAL SECTION: General Governmental Revenues by Source 85 General Governmental Expenditures by Function 86 Assessed and Estimated Actual Values of All Taxable City Property 87 Scheduled of Direct and Overlapping Bonded Debt 88 Schedule of Legal Debt Margin 89 Property Tax Levies and Tax Collections 90 Insurance in Force 91-92 Demographic Statistics 93 Principal Taxpayers and Major Employers 94 Property Value, Constructions, and Bank Deposits 95 Property Tax Rates - All Overlapping Governments 96 Miscellaneous Statistics 97 iii 23920 Valencia Blvd. Suite 300 ' Santa Clarita California 91355-2196 City of Santa Clarita November 30, 1996 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, 1996. 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 to all material respects and are reported to 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 fudged to substantially conform to program standards. In order to receive the awards, agovernmental 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 seven 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. PRINTAMN 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 statement Supplemental financial statements and schedules III. 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, 1996, 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 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 mupal services including public safety, public works, parks and recreation, community development, etc. This report includes all funds and account groups of the City of Santa Clarity Santa Clarity Redevelopment Agency and Santa Clanta Public Financing Authority. vi General Government Functions A summary of the general government functions overall operating results for the fiscal year ended June 30, 1996 and the amount and percentage of increases and decreases to 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 1995-96 REVENUES Other Agencie 37.4% Fines & Forfeitu 0.8% Use of Money & Prop. 4.1% nPVPinnPr Fees Taxes 39.1% Vii nses & Permits 3.0% Service Chrgs & Others 9.2% INCREASE PERCENT Fy 95-96 PERCENT (DECREASE) OF INCREASE REVENUES; AMOUNT OF TOTAL FROM FY 94-95 (DECREASE) TAS $ 22,706 39.1 % S 537 2.4 % LICENSES AND PERMITS 1,749 3.0 477 37.5 DEVELOPER FEES 3,747 6.5 (1,049) (21.9) USE OF MONEY & PROPERTY 2,397 4.1 57 2.4 REVENUES FROM OTHER AGENCIES 21,698 37.4 (5,740) (20.9) FINES AND FORFEITURES 445 0.8 27 6.5 SERVICE CHARGES & OTHERS . 5,332 9.2 887 20.0 TOTALS $ ' 58.074 100.0% $ (4,804) (7.6) Other Agencie 37.4% Fines & Forfeitu 0.8% Use of Money & Prop. 4.1% nPVPinnPr Fees Taxes 39.1% Vii nses & Permits 3.0% Service Chrgs & Others 9.2% The City experienced an overall decrease of 7.6% in general government revenues. The stability of the City's tax revenues, which comprises 39.1% of the total revenue base has been consistent in minimizing the effects of a weak economy in prior years This is reflected by Revenue from Taxes gain of 2.4% from last year's total. Sales tax, the City's largest revenue source, increased by 2.4% due to a modest recovery in the state's economy. The largest increase in taxes was seen in the real property transfer tax which increased by 20.1% from last year as a result of a County audit which showed the City was due additional revenues. At the same time, franchise tax revenue increased 5.6% due to growth in the Cityty. Business license taxes along with the City's new Peddler permits increased by 9.6% from last year showing that businesses are continuing to make Santa Clarita their home. Revenues from Licenses and Permits showed the largest gain with an increase of 37.5% due to an overall rise in the issuance of various types of building and safety permits. Developer Fees revenues are collected at the approval of a project but not recognized until the expenditures are incurred. During the 1995-96 fiscal year, developer project expenditures were significantly less than last year thus accounting for the 21.9%. decrease in Developer Fee revenues. An overall increase of 2.4% in Use of Money & Property occurred during the fiscal year. This is due mainly to the high occupancy rate maintained in City Hall throughout 1995-96. Interest income actually decreased slightly due to the slow decrease of interest rates. Revenues from Other Agencies include many of the State and County subventions that the City receives.. This revenue category experienced.an overall decrease of 20.9% for several reasons. The most significant decrease occurred in the City's revenue received from FEMA as a result of the 1994 Northridge Earthquake. This amounted to a 98% decrease from last year. Park grants experienced a 95.8% decrease due to the rescheduling of projects for next year. As a result of obtaining. new grant funds, the City has been able to offset some of these decreases: Some of the new grants obtained include the Office of Traffic Safety Grant, Economic Development Administration Grant, Federal Transit Grant, U.S. Department of Agriculture Grant, and the Los Angeles County Open Space Grant. Fines and Forfeitures, which consists primarily of Vehicle Code Fines, increased by 6.5% as a result of increased efforts made by the City's code enforcement staff. Revenues from Service Charges and Others experienced a decrease of 20.0%. This increase can be attributed mainly to the receipt of funds in the prior fiscal year from various Homeowner's Associations to reimburse the City for earthquake repairs of the paseos. viii FISCAL YEAR 1995-96 EXPENDITURES INCREASE• PERCENT FY 95-96 PERCENT (DECREASE) OF INCREASE EXPENDITURES AMOUNT OF TOTAL FROM FY 94-95 (DECREASE) GENERAL GOVERNMENT $ 6,708 12.0% $ 1,522 29.4 % PUBLIC SAFETY 9,755 17A (362) (3.6) PUBLIC WORKS 3,772 6.7 . (2,013) (34.8) PARKS & RECREATION 7,066 12.6 651 10.2 COMMUNITY DEVELOPMENT 6,633 11.9 1,886 39.7 CAPITAL OUTLAY 19,182 34.3 (6,305) (24.7) DEBT SERVICE 2,794 5.0 109 4.1 TOTALS $ 55,910 100.0% $ (4,511) (75) Park Community 11 Public Safety Public Works 17,4%0 34.3% Government . 12.0% . ervice 1% During fiscal year 1995-96, the City saw an overall decrease of 7.5% in expenditures. The first category of expenditures, General Government increased by 29.4%. This increase is mostly due to a reorganization which occurred at the onset of the fiscal 9.x year. General Services. and Property Management divisions moved from Public Works to the newly created Administrative Services Department which also includes Finance and Information Resources: Additionally, the Community Recovery Agency decreased by 37% due to reduced activity while in litigation. And lastly, CDBG expenditures were moved from general government to Community Development. Public Safety had a 3.6 % decrease due to vacancies in some of the police positions which were a direct result of the County cutbacks. Although we contracted with them for a certain number of positions, the County would not allow certain positions to be filled thus creating savings. Public Works experienced a 34.8% decrease in expenditures mainly due to Property Management. and General Services being reclassified to general government. Solid Waste division decreased by 59% because the funds used to fight the Elsmere Landfill were no longer budgeted in Solid Waste. However, along with these decreases, the Street Maintenance and Vehicle Maintenance experienced an increase in expenditures due to increased demands placed on our roads due to growth. Parks, Recreation, and Community Services expenditures went up 10.2% from last year. The biggest increase was in the Emergency Preparedness division due to the reclassification of the Special Projects division which was previously under General Government. Recreation programs were also expanded to meet the needs of the community and as a result experienced a 17.7% increase in expenditures. An overall increase of 39.7% occurred in the Community Development category. The Stormwater Utility showed a 37.9% increase from last year due to the ongoing expenses developing the Stormwater master plan, and the hiring of full-time staff. The newly created Building and Engineering Services department which includes Building and Safety, Engineering, and Code.Enforcement had a cumulative average increase of 20.5%. The near completion of all earthquake repairs throughout the City contributed to the 24.7% decrease in the Capital Outlay expenditures. This amounted to a 72.3% reduction in expenditures from last year. Debt Service expenditures increased by 4.1% from last year primarily because of the interest accrued on the loan from general fund to the Community Recovery Agency. 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, depreciation and amortization. For fiscal year 1995-96, Proposition A funds of $2,411,671; Proposition C funds of $593,800, and TDA funds of $2,626,605 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, Equipment Replacement and . Computer 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. Accordin to California law, cities must use the 1978779 ap ropriations as a base year and modigfy that figure by the composite consumer price index and population changes which have accrued in subsequent years. Because Santa Clanta is a newly incorporated city, the Los Angeles County Local Agency Formation Commission used 1985-86 fiscalyear appropriations at incorporation as the base year on which the City will modify each year. The City has sinceperformed a study to increase the limit, and City appropriations remain below the Gann 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 fourth 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, 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 funds. The weighted average yield on such investments for the year was 5.453% with total interest earnings for all funds at $1,302,311. 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 6.7% payable semi-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, 1996, the master lease obligation aggregated $1,250,526. Xi 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, 1996, the City's obligation for Public Financing Authority Revenue Bonds - Series 1991 is $19,715,000. 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, 1996, equals $3,610,000. In September, 1992, the City entered into an agreement whereby the Los Angeles County Transportation Commission loaned the City $2,500000 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. As of June 30, 1996, the City's obligation is $1,000,000. 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, 1996, 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 seven years or until accrued interest and principal are paid in full. In June, 1995, the City entered into an agreement with Newhall Land and Farming 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. The City's obligation as of June 30, 1996 is $677,769. In April; 1996, the City entered into a lease with an option to purchase agreement in the amount of $525,000 for the lease of a computer system from Municipal Leasing Associates, Inc. As of June 30, 1996, the City had received $195,848 in proceeds from the Capital Lease which was used to acquire computer equipment. The remaining proceeds will be received in fiscal year 1996-97. Interest, at 4.9%, and principal are payable semi-annually from November 9, 1996 through May 9, 1999. xii Elduciary 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 fundis custodial in nature and is used to receive and disburse funds which do not belong to the City. The Ciry'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 aportion 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 of Santa Clarita maintains full coverage for all municipal events under its general liability. policy. This policy provides a $250,000 self-insured retention and is layered to a total coverage of $10 million per occurrence. In additionto general liability; the City maintains individual policies for autos, property, flood and earthquake damage where appropriate. As a precautionary measure, all employees in a position with significant fmancial responsibility are independently bonded. The individual bond compliments the blanket dishonesty bond extended to all employees. Workers' compensation claims are currently administered through the State Fund. Overall, Santa Clarita has continued to maintain an excellent loss history in this area due to departmental and City-wide safety training sessions. To protect the self-insured retention mentioned, Santa Clarita maintains a comprehensive risk management program which focuses on detection and prevention of claims though frequent inspection. An annual review of potential hazards is . conducted in conjunction with our general liability provider, Insurance Company of the West. This early identification of potential hazards, along with departmental daily, monthly and quarterly inspections, ensures that issues are addressed in a timely manner before inures occur. In addition, the City.has implemented a stringent risk assessment and contract review system which ensures that all contracts have appropriate indemnification and insurance provisions, thus protecting the City in all events. Finally, the City as a policy takes a position to aggressively defend all claims for damages. This fiduciary responsibility is not taken lightly, as is proven in the excellent loss record sustained by the City since incorporation. General Fixed Assets The City's general fixed assets represent those fixed assets used in the performance of general government functions. At June 30, 1996, the City's general fixed assets aggregated $49,187,319. 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. I 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 is fortunate in that it has many community assets to draw upon. Consequently, the community as a whole, as well as individual groups, have been very active in assisting in the formulation of goals and setting priorities for the City. One primary means for gamering citizen input is the Community Wide Strategic Plan, Share the Vision Il. This short-range planning document, prepared in October of 1994, set the 'tone and direction for the City into 1997: Key items focused upon . within the strategic plan included obtaining new roads, enhancing Youth and Family Programs, revitalizing Old Newhall, defeating the proposed Elsmere Canyon Landfll, preserving open space and reducing gangs and gang -related activity to name a few. Each of these projects has received significant attention and are now.well on their way to completion. While the Strategic Planning process has proven a successful vehicle for citizen participation, we as an organization are consistently looking for new avenues to re-engage or connect others with. their local government so that the community can' be a better place for all. Capital Improvements Santa Clarita takes great pride in its ability to obtain various forms of funding for its complete Citywide Capital Improvement Program. Since 1988, general fund dollars have not been utilized to fund any facet of the capital program. Rather we look to the ingenuity of staff to seek out grants and obtain funding from various local, state and federal sources. During the 1996-97 fiscal year, a variety of significant projects were set in motion or completed. These include the Valencia Soledad Canyon corridor traffic improvements, the San Fernando Road widening project and construction of sidewalk curb and gutter repair in east Newhall. In the area of parks and trails capital improvements, the City was very proud to dedicate phase, IV of the South Fork Trail, as well as phase H of the Santa Clara River Trail. These links in the overall trail system brought the City one step closer to the premier trail system envisioned within the General Plan. Secondly, the City began construction of the eight -acre Creekview Park. This park, complete. with soccer fields, hard courts, and a tot lot, will provide additional recreational opportunities for our residents within the Newhall area of the City. xiv In addition to the brick and mortar capital projects, the Parks Development Division was successful in obtaining special funding to allow for the acquisition of open space both in and outside of the City limits. The acquisition included Santa Clarita Woodlands Park (60 acres), Lost Canyon (26 acres) and 8 acres of property at Mint Canyon. Each of these acquisitions further the City's stated strategic planninggoals of preservation of open space. Significant projects initiated yet not completed in 1995/96 include the alignment study for the Magic Mountain ParkwayNia Princessa project. This is the first major roadway proposed for construction since incorporation. In addition, the City is currently, working with Newhall Land and Farm and the Castaic Lake Water Agency in the development of a 500 -acre park located within the center -of the City.. In concert with this project is the planning for the future Santa Clarita Parkway. Another significant effort now underway is the formation of the Newhall Redevelopment Agency. The Cityhas held numerous public meetings with interested stakeholders to develop a shared vision for the Downtown Newhall area. This vision is expressed in the completed Freedman, Tung and Bottomley report adopted by the City Council. As a means to finance the capital cost associated with achieving this vision, a redevelopment feasibility analysis was initiated. Santa Clarita is now in the process of conducting a preliminary study to determine appropriate boundaries for the proposed redevelopment agency. A major source of community pride was also the Congressional approval of the Ommbus Parks and Public Lands Management Act of 1996, which prohibited the exchange of National Forest Land for the siting of urban landfills. This bill achieved through the leadership of Congressman Howard Buck McKeon was a great win for the City in its ongoing efforts to oppose the siting of what has been termed the world largest dump directly outside of the City boundaries. Economic Condition and Outlook After a difficult and prolonged recession, California's economy has begun to show strong signs of renewal. By early 1996, the state's economy had replaced all of the jobs lost to the recession of the early 1990's. Economic forecasts from those including UCLA, Merrill Lynch; First Interstate Bank and the California State Department of Finance.all expect this uptum to continue, if not accelerate. Many believe that this recovery has been propelled by particular growth sectors, many of which rank among the most promising fields in the future. These growth sectors are also found in Santa Clarita. Key among the areas for future growth are the field of technology, design, tourism and entertainment related industries. Specifically in Southern California, the film industry has become a key source of new higher wage obs paying more than 40% above the statewide average. These new areas of CalVornia Economy have been termed the knowledge value sector. This can be readily seen in Santa Clarita with over four film studios including, The Disney Golden Oak Ranch, Santa Clarita Studios and Melody Ranch to name a few. The industrial center, located in the western portion of the City; houses over 780 firms of this nature embellishing the xv City's overalljobs and economic base. In addition to its increasing knowledge value base economy, Santa Clarita is fortunate to have a healthy business community. In recent years the City attracted various commercial names such as Barnes and Noble Bookstore and additional nationally known businesses. In addition the Creekside auto mall, the Valencia Town Center, Price Club, Lucky and Hughes Market continue to be several of the largest sales tax producers and mayor non industrial employers in the City. Like others municipalities in Southern California, Santa Clarity is not without its challenges. In 1996 the Valencia Market Place, located directly across from the City boundaries, opened. This retail center contains many big box retailers such as Toys R Us, Wal Mart,.! Linens and Things and a future Circuit City. The City is currently conducting an analysis of the potential sales tax leakage and indirect impacts of the center on Santa Clarita s revenue picture. Still, with this and other challenges, all are extremely optimistic about the City's continued economic growth. Santa Clarita is continuing to experience a steady rise in property taxes and building permits which, along with sales tax form a strong foundation for City revenues. On the horizon for 1996/97 there are several new office complexes, the annexation of Lockheed, a 250 -room Hilton hotel with conference center, a Spectrum health club, neighborhood commercial developments and a promising Galpin Saturn dealership. 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, 1996. Based on the latest available data from GFOA, the Cityof Santa Clarita was one of 1,299 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. xvi Acknowledgments The preparation of this report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Division..I should like to express my appreciation to all members of the department who assisted and contributed to its preparation, in particular; Barbara Boswell, Acting Accounting Manager; Michele HHansen and April Skinner, Accountants; Chris Roman, Administrative Analyst; and Jackie Bialas, Account Clerk. Thanks also to Terri Maus, Assistant to the City Manager; and Nina Giangreco, the City's Graphic Artist for their contributions. I should also like to thank the Mayor, Members of the City Council, and the City Manager, George Caravalho, for their continuing efforts in planning and administering the financial operations of the City in a responsible and progressive manner. Respectfully submitted, ��II Stevei�Stark Director of Administrative Services xvii 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, 1995 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. OF = URRA SfAhS � MO w yt MMUT tl s Preside t sFae r�ncwo AExecutive Director Xviii CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS Certificate of Award Outstanding Financial Reporting 1994-95 Presented to . City of Santa Clarita This certificate is issued in recognition of tneeting professional standards and criteria In reporting which reflect a high level of quality in the annualfinanclal statements and in the underlying accounting system from which the reports wereprepared. February 26;1996 Chair, ofessional & Technical Standar onuniaee 1 i E PresJdent - cl "FT, c 39 Dedicated to Excellence in Municipal Financial Management 39 City. Council Carl Boyer III Hamilton C. Smyth Jo Anne Darcy Janice H. Heidt Jill Klajic City Officials' George Caravalho Kenneth Pulskamp Carl Newton Jenny Roney Steve Stark Lynn M. Harris Rick Putnam Anthony Nisich Officials of the City of Santa Clarita MAYOR MAYOR PRO -TEM COUNCE.MEMBER COUNCILMEMBER 'COUNCILMEMBER CITY MANAGER ASSISTANT CITY MANAGER ACTING COMMUNITY DEVELOPMENT DIRECTOR CITY ATTORNEY INTERIM CITY CLERK DIRECTOR OF ADMINISTRATIVE SERVICES DEPUTY CITY MANAGER DIRECTOR OF PUBLIC WORKS DIRECTOR OF PARKS, RECREATION & COMMUNITY SERVICES DIRECTOR OF BUILDING & ENGINEERING SERVICES CITY ENGINEER M City of Santa Clarita Organization Chart Citizens of Santa Clarita i City Council City Manager F— — City Attorney • City Clerk Assistant . Budget City Manager . Risk Management • Intergovernmental Relations • Elsmere • Public Information Special Projects • Anti -Gang • Personnel •Human Relations Budding& Community Public Administrative Parks,Recreation. Public Engineering Development Warks Services &Community Safety Services Services xxi City of Santa Clarita CITY OF. SANTA CLARITA LEGEND Financial Section . 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J,o +'Jron'rW e+.6 Yw.,,r...'•y,Y. ♦' P �Y h< t €�� } a ww b ATr> it ry d t it ails f%4 AC � as >a" v � _� :l * y 'p�'fiW' rr ! `1 x ,1' a 4 .. a. i • '.w.. '! yr i 'a'iand a f w'� �`,. T %.Y "Eba � n WtXn s „`M"'� vt' r 4- J.t I' t� r 4 8[ r 'rv°�+�gr �'•� a s1. s i t < J `-mss I vers Rp J �'i� ♦ h d J ' '. i m'r i t� rn aa+"il.R1°�{• i -1 �" P 1 �/ r. w a W w= �� .., k a � 1•!`�iS'"R r .� � A k..w . d t'14, t.- ,'• a't ad'L* yi_" L A r!�.tra1 ,# '•b to t•aPw.rr�Tr 4t„ (u tt Tlya;'`>'"�^�. .." a � �+L' t,-, Tat, •y W IA *`Af al + it d "1n! 1 s 7" y ♦ r ��� w"-. ; R l .w ' ^w!"'+F # aax 4 n t yY.- $rA 4 Y W h ^ 1 ! 2 '. �. B 1 i rl"P it J! i J e r = d • d W,. r� r ii r. 1r J� 1 i- a ynl n�r''r J n "i Ilx �. 7k J �a,^�.- 4•� _ tarf� 'r �A•;d .Pf4'm"r ,y''��/ "F.�;4,N'`,_.�. _tl y„ a 3 . .., _, ..+3 �/'f • ; ,� M W '-7�lTa_ytrl �,��r ����a.►� « ,1�i.�li� r� .�,"�'�y.� t # ,I, Wy .. 1. - e y.� i '1 1' 1� a t °�^•��'f1dCl _..R r • • • ®DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS • A PARTNERSHIP INCLUDING ACCOUNTANCYCORPORATIONS • 18401 VON KARMAN, SUITE 200 • IRVINE, CALIFORNIA 92612-1542 • (714) 757-7700 • FAX (714) 757.2707 � September 27, 1996 INDEPENDENT AUDITORS' REPORT City Council City of Santa Clarita Santa Clarita, California • RODNEY K. McDANIEL, CPA MICHAEL R LUDIN, CPA CRAIG W. SPRAKER, CPA • PHILIP H. HOLTKAMP, CPA THOMAS M. PERLOWSKI, 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, 1996, as listed in the table of contents. These general purpose financial statements • are the responsibility of the City's management. Our responsibility is to express an opinion on these general • purpose 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 general purpose 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, 1996 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. As discussed in Note 14 to the financial statements, the City has implemented Governmental Accounting Standards Board Statement No. • 22, "Accounting for Taxpayer -Assessed Tht Revenues in Governmental Funds" 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 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, D ea , aevi_ct G , i-1.1 -1- 2965 ROOSEVELT STREEI CARLSBAD, CALIFORNIA 92008-2389 (619) 729-2343 • FAX (619) 729-2234 613 W VALLEY PARKWAY, SUITE 330 ESCONDIDO, CALIFORNIA 92025-2598 (619) 741.3141 • FAX (619) 741-9890 4 Z;L 1*7l"; 4 GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF SANTA CLARITA COMBINED BALANCE SHEET—ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1996 With comparative totals for June 30. 1995 ASSETS AND OTHER DEBITS ASSETS: Cash and investments (Notes If and 2) Cash and investments with fiscal agent (Notes If, 2 and 10) Accounts receivable Interest receivable Due from other funds (Note 8) Due from other governments Deposits Prepaid items Advances to other funds Property, plant and equipment (Notes IS and 3) Deferred bond issue costs OTHER DEBITS: Amount available for retirement of long—term debt Amount to be provided for retirement of long—term debt TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES: Accounts payable and accrued liabilities Deferred revenues (Note 5) Due to other governments (Note 6) Deposits Due to other funds (Note 8) Deferred compensation payable (Note 10) Long—term obligations (Notes 4 and 7) TOTAL LIABILITIES EQUITY AND OTHER CREDITS: Investment in general fixed assets (Notes IS and 3) Contributed capital (Note 17) Retained earnings (deficits) (Notes 11 and 13): Reserved Unreserved Fund balances (deficits)(Note 13): Reserved Unreserved: Designated Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY AND OTHER CREDITS Governmental Fund Types Special Debt Capital General Revenue Service Proiect $ 6,961,514 $ 19,031,478 S — S 1,680,704 — — 2,279,094 22,324 2,915,918 1,082,912 — — 104,018 162,124 — 800 3,177,642 — — — 492,414 4,236,883 — 1,287,053 37,298 12,560 — — 1,612,248 — — — S 15301.052 S 24.523.957 S 2,279094 S 2.990.681 S 2,111,731 S 1,163,047 $ 651,218 2,246,526 — 11,133,946 44,030 - - 1,843,533 2,806,979 16,387,052 S 26,841 18,924 45,765 4,324,568 3,421;353 2,279,094 857,195 8,169,505 10,709,236 — 2,087,921 (5,991,684) 12,494,073 8,138,905 2,279,094 2,945,116 $ 15301,052 S 24,525.957 S 2,279,094 S 2,990,881 See independent auditors' report and notes to financial statements. —2— 20,966,662 16,092,202 (5,991,684) (3,672,332) 2,488,980 313.083 49,187,319 - 77,846,570 71,451,998 S 11.173,003 E 1.056.627 $ 5.521.446S 49,187.319 $ 25.087,984 S 137,123.363$ 135,923,957_ _3- Fiduciary Totals Proprietary Fund Types Fund Types Account Groups (Memorandum Only) Trust General General Internal and Fixed Long -Term June 30, June 30, Enterprise Service Agency Assets Debt 1996 1995 E 57,673 $ 850,875 $ 286,763 S - S - S 28,869,007 S 30,064,240 - - 5,142,134 - - 7,443,552 9,148,627 16,136 - 92,399 - - 4,107,365 4,007,127 - 6,698 150 - - 273,790 331,973 - - - - - 3,177,642 3,573,764 1,052,969 - - - - 7,069,319 6,995,153 489,500 - - - - 489,500 489,500 14,198 3,206 - - - 67,262 46,261 - - - - - 1,612,248 1,063,129 9,466,001 195,848 - 49,187,319 - 58,849,168 54,621,204 76,526 - - - - 76,526 88,921 - - - - 2,279,094 2,279,094 2,273,257 22,808,890 22,808,890 23,220,801 E 11.173.003 S 1.056.627S 5.521.446 S 49.187.319 S 25.087.984 E 137,123.363 S 135,923.957 $ 846,293 S 530,347 $ 44,706 S - S - S 4,722,965 S 9,210,012 600 - - - - 2,898,344 2,356,544 - - - - - 11,152,870 10,592,585 - - 2,300,563 - - 2,344,593 2,704,376 1,316,760 17,349 - - - 3,177,642 3,573,764 - - 3,176,177 - - 3,176,177 2,345,377 6,520,370 195,848 25,087,984 31,804,202 33,689,301 8,684,023 743,544 5,521,446 25,087,984 59,276,793 64,471,959 - - - 49,187,319 - 49,187,319 45,035,659 1,622,071 - - - - 1,622,071 452,704 489,500 - - - - 489,500 489,500 377,409 313,083 - - - 690,492 (1,467,666) _ - _ _ - 10,882,210 14,521,931 20,966,662 16,092,202 (5,991,684) (3,672,332) 2,488,980 313.083 49,187,319 - 77,846,570 71,451,998 S 11.173,003 E 1.056.627 $ 5.521.446S 49,187.319 $ 25.087,984 S 137,123.363$ 135,923,957_ _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, 1996 With comparative totals 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 (Note 4c) 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 AD] USTMENT(NOTE 14) FUND BALANCES—BEGINNING OF YEAR, AS RESTATED Governmental Fund Types Special Debt Capital General Revenue Service Project S 22,706,122 $ - 5 - $ - 1,749,220 — — - - 3,746,441 — — 1,060,362 939,821 117,431 279.245 6,428,731 13,613,099 — 1,656,042 131,635 313,775 — — 1,630,350 2,038,494 — — 637,476 405,621 34,343,896 21,057,251 117,431 1,935,287 6,213,054 14,345 — 480,218 9,754,629 — — — 1,174,295 1,977,556 — — 7,065,890 — — — 4,547,573 2,085,595 — — 836,947 11,568,280 — 6,776,850 — — 1,039,967 — 1,753,956 29,592.388 15,645,776 2,793,923 7,257.068 4,751,508 5,411,475 (2,676,492) (5,321,781) — — 98,978 498,103 2,263,783 84,892 2,583,351 — (2,840,447) (6,563,655) (1,250,000) (576,664) (6,478,763) 2,682,329 (751,897) 4,174,844 (1,067,288) - 5,837 (6,073,678) 6,600,949 9,048,801 2,273,257 9,018,794 1,718,280 157,392 8,319,229 9,206,193 2,273,257 9,018,794 FUND BALANCES—END OF YEAR S 12.494,073 S 8,138,905 S2.279.094 S 2.945.116 See independent auditors' report and notes to financial statements. —4— Fiduciary Totals Fund Type (Memorandum Only) Expendable June 30, June 30, Trust 1996 1995 $ — $ 22,706,122 $ 22,169,202 — 1,749,220 1,272,109 — 3,746,441 4,795,744 — 2,396,859 2,339,564 — 21,697,872 27,022,734 — 445,410 418,353 — 3,668,844 3,421,783 620,404 1,663,501 1,023,055 620.404 58,074,269 62,462,544 — 6,707,617 5,185,377 — 9,754,629 10,116,169 620,404 3,772,255 5,784,519 — 7,065,890 6,414,630 — 6,633,168 4,747,081 — 19,182,077 25,487,576 — 1,039,967 1,096,167 1,753,956 1.588,879 620,404 55,909.559 60,420,398 2,164,710 2,042.146 — 597,081 899,399 — 4,932,026 4,174,334 (10,654,102) (10,953,537) (5,124,995) (5,879,804) (2.960,285) (3,837,658) 26,941,801 31,114,954 1.875.672 (335.495) 28,817,473 30,779,459 $ E25.857.188 $ 26.941.801 -5- CITY OF SANTA CLARITA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUNDS, ALL BUDGETED DEBT SERVICE FUNDS AND ALL BUDGETED CAPITAL PROJECT FUNDS For the year ended June 30, 1996 REVENUES: Taxes Licenses and permits 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 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 (USESk 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 (NOTE 14) FUND BALANCES— BEGINNING OF YEAR, AS RESTATED FUND BALANCES—END OF YEAR General Fund 36,274,153 34,343,896 (1,930,257) 9,841,447 6,213,054 Variance 9,801,543 9,754,629 Favorable Budget Actual (Unfavorable) $ 21,826,460 S 22,706,122 S 879,662 2,025,900 1,749,220 (276,680) 838,515 1,060,362 221,847 9,561,338 6,428,731 (3,132,607) 116,000 131,635 15,635 1,603,690 1,630,350 26,660 302.250 637,476 335,226 36,274,153 34,343,896 (1,930,257) 9,841,447 6,213,054 3,628,393 9,801,543 9,754,629 46,914 1,366,885 1,174,295 192,590 7,582,228 7,065,890 516,338 5,888,249 4,547,573 1,340,676 5,565,685 836,947 4,728,738 40,046,037 29,592.388 10,453.649 (,3,771,884) 4,751:508 8,523,392 1,247,653 2,263,783 1,016,130 (250,000) (2,840,447) (2,590,447) 997453 (576,664) (1,574,317) (2,774,231) 4,174,844 6,949,075 6,600,949 6,600,949 — 1,718,280 1,718,280 8,319,229 8,319,229 S SS44,998 S 12A94,073 L_6 949,075 See independent auditors' report and notes to financial statements. Sfl Snecial Revenue Funds Budget Actual Variance Favorable (Unfavorable) $ - $ - $ - 4,857,710 3,746,441 (1,111,269) 142,500 939,821 797,321 23,971,532 13,613,099 (10,358,433) 283,600 313,775 30,175 1,931.077 2,038,494 107,417 22,625 405,621 382,996 31,209,044 21,057,251 (10,151,793) All Budeeted Debt Service Funds Variance Favorable Budget Actual (Unfavorable) $ 117,431 117,431 117,431 117,431 14,340 14,345 (5) — — — 2,367,099 1,977,556 389,543 — — — 8,403,683 2,085,595 6,318,088 — — — 29,055,271 11,568,280 17,486,991 — — — — — — 1,040,000 1,039,967 33 — — 1,585,500 1,654,978 (69,478) 39,840,393 15,645,776 24,194,617 2,625,500 2,694,945 (69,445) (8.631,349) 5.411,475 14,042,824 (2,625,500) (2,577,514) 47,986 32,600 84,892 52,292 478,652 2,583,351 2,104,699 (6,732,235) (6,563.655) 168.580 — — — (6,699,635) (6,478,763) 220,872 478,652 2,583,351 2,104,699 (15.330,984) (1,067,288) 14,263,696 (2,146.848) 5,837 2,152,685 9,048,801 9,048,801 — 2,273,257 2,273,257 — 157,392 157,392 9,206,193 9,206,193 — (6.124.7911 $ 8.138.905 $ 14.26 69696 2,273,257 2,273,257 — $ 126.4092.152.685 (Continued) —7— CITY OF SANTA CLARITA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUNDS, DEBT SERVICE FUNDS AND ALL BUDGETED CAPITAL PROJECT FUNDS (CONTINUED) For the year ended June 30, 1996 REVENUES: Taxes Licenses and permits 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 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 (USESk 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 (NOTE 14) FUND BALANCES— BEGINNING OF YEAR, AS RESTATED FUND BALANCES—END OF YEAR All Budgeted Canital Proiect Funds Variance Favorable Budget Actual (Unfavorable) $ — $ — $ 198,244 198,244 1,300,000 1,656,042 356,042 1,300,000 1,854,286 554,286 503,495 480,218 23,277 6,288,878 4,276,224 2,012,654 6,792,373 4,756,442 2,035,931 (5.492.373) (2.902,156) 2.590,217 498,103 498,103 (1,250,000) 11,250,000) (751,897) (751,897) (5,492.373) (3,654,053) 1,838,320 6,576,845 6,576,845 — 6,576,845 6,576.845 — S 1.084.472 S 2.922.792 S 1.838.320 See independent auditors' report and notes to financial statements. Totals (Memorandum Only) Variance Favorable Budget Actual (Unfavorable) $ 21,826,460 $ 22,706,122 $ 879,662 2,025,900 1,749,220 (276,680) 4,857,710 3,746,441 (1,111,269) 981,015 2,315,858 1,334,843 34,832,870 21,697,872 (13,134,998) 399,600 445,410 45,810 3,534,767 3,668,844 134,077 324,875 1,043,097 718,222 68,783,197 57.372,864 (11,410.333) 10,359,282 6,707,617 3,651,665 9,801,543 9,754,629 46,914 3,733,984 3,151,851 582,133 7,582,228 7,065,890 516,338 14,291,932 6,633,168 7,658,764 40,909,834 16,681, 451 24,228,383 1,040,000 1,039,967 33 1,585,500 1.654,978 (69,478) 89,304,303 52,689,551 36,614,752 (20,521,106) 4,683,313 25,204,419 — 498,103 498,103 1,758,905 4,932,026 3,173,121 (6,982,235) (10,654,102) (3,671,867) (5,223,330) (5,223,973) (643) (25,744,436) (540,660) 25,203,776 24,499,852 24,499,852 — 1.875.672 1.875.672 26,375.524 26,375.524 $ 631.088 $ 25.834.864 $25.203.776 � #+ >- -v ^+ ,� �W� �✓ raw r d �,.".=:Yx.+ w " r r w , t Y,`, F ; t i@ '� 4"o jr r _ n #(�� �' •� � e l t • h^+. 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P tTIT, NOTES TO FINANCUL STATEMENTS CITY OF SANTA CLARITA NO'T'ES TO FINANCIAL STATEMENTS June 30, 1996 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 is in the process of forming 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 Debt Service 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, 1996 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, 1995, 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. 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). See independent auditors' report. -13= CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Description of Fund Types and Account Groups (Continued): 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: Expendable 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. Account Groups: General Fixed Assets Account Groun - account for fixed assets of the City, except for those accounted for in proprietary fund types. General Lone Term Debt Account Group - account for long-term debt of the City, except for debt accounted for in proprietary fund types. See independent auditors' report. -14- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): 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, taxpayer assessed taxes, such as 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. Generally 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. For purposes of these general purpose financial statements, the City has conformed to the pronouncements of the Governmental Accounting Standards Board (GASB) which are acknowledged as the primary authoritative statements of generally accepted accounting principles applicable to state and local governments. In accordance with GASB Statement No. 20, the City applies all applicable GASB pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements contradict GASB pronouncements: Financial Accounting Standards Board Statements and Interpretations, Accounting Principals Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure. See independent auditors' report. -15- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 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. Their 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.transfer budgeted 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 NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 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, or the Redevelopment Debt Service Fund as the City does not adopt annual budgets for these .types of funds. The following is a reconciliation of fund balance for budgeted and nonbudgeted funds. Capital Proiect Fund Balance - Budgeted Funds $ 2,922,792 Fund Balance - Nonbudgeted Funds 22.324 Total Fund Balance $ 2,945,116 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, 1996, budgeted appropriation in the governmental funds increased from $77,840,109 to $89,304,303. 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, 1996 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, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): f. Cash and Investments (Continued): A substantial portion of the City's investments are . in short -tern, 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 $15,884,531. 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. -18- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 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 $482,038 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 I 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, 1996. 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, 1996 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, the Los Angeles County Pooled Investment Fund, and money market mutual funds. 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 -party 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 association 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. 510.1 CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 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 broker/dealer. See independent auditors' report. -21- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 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 tha 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. At June 30, 1996, the total market value of LAIF was $26,851,615,143. The City's proportionate share of that value is $15,863,432. Included in LAIF's investment portfolio are certain derivative securities or similar products such as structured notes totalling $1,100,720,000 and asset backed securities totalling $313,945,000. 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. At June 30, 1996, the market value of LACPIF was $6,038,418,669. The City's proportionate share of that value is $62,672. 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, 1996 2. CASH AND INVESTMENTS (CONTINUED): Deposits and investments were categorized as follows at June 30, 1996: Category Bank Carrying Deposits: 1 2 3 Balance Amount Demand accounts 141,850 618 869 $ - 760 719 $ 381,357 Not Required CategM To Be Investments: 1 2 3 Categorized Investments with fiscal agents: Los Angeles County Pooled Investment Fund(LACPIF) $ Mutual Funds United States Treasury Bills Federal National Mortgage Assoc. United States Treasury Notes Federal Home Loan Bank Commercial paper Bankers acceptance California Local Agency Investment Fund (LAIF) Los Angeles County Pooled Investment -$ -$ -$ 13,915 - 4,253,459 2,091,753 - 2,442,328 2,597,999 Contractual/ Market Value 13,915 $ ' 13,902 4,253,459 4,253,459 2,091,753 2,090,981 2,442,328 2,440,407 2,597,999 2,589,419 1,502,089 - 1,502,089 1,493,820 1,498,069 - 1,498,069 1,497,450 2,484,797 - 2,484,797 2,483,650 - 15,821,802 15,821,802 15,821,802 Fund (LACPIF) - - 48,814 48,814 48,770 Deferred compensation 3,176,177 3,176,177 3,176,177 Total Investments 12 617 035 23 314 167 35,931,202 $ 35,909,837 TOTAL CARRYING AMOUNT (BOOK BALANCES) $ 36,312.559 See independent auditors' report. -23- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 2. CASH AND INVESTMENTS (CONTINUED): Cash and investments are reported in the accompanying combined balance sheet as follows: Cash and investments $ 28,869,007 Cash and investments with fiscal agent 7:443.552 36.312.559 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, 1996 are as follows: See independent auditors' report. -24= Balance Balance July 1, June 30, 1995 Additions Retirements 1996 Land and improvements '$25,897,515 $ 3,402,609 $ - $ 29,300,124 Buildings 13,487,501 152,603 - 13;640,104 Equipment 5.650.643 596.448 - 6,247.091 Totals 5 035 659 $ 4,151.660 $ - 49.187.319 See independent auditors' report. -24= CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 3. PROPERTY, PLANT AND EQUIPMENT (CONTINUED): Changes in the proprietary fund property, plant and equipment for the year ended June 30, 1996 are as follows: Balance Balance July 1, June 30, 1995 Additions Deletions 1996 Enterprise Fund Equipment acquired by capital lease $ 6,162,479 Equipment purchased 311,924 Building 3,657,462 Land 1,743.027 Less: accumulated 11,874,892 depreciation (2,289,347) Net Assets $ 9.585,545 $ $ - $ 6,162,479 6,308 - 318,232 551,493 - 4,208,955 1.743:027 12,432,693 (2.966.692) $ 9,466.001 Internal Service Fund Equipment $ - 195.848= $ 195.848 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, 1996: Financing Authority Revenue Bonds - Series 1991 Notes payable Advances to other funds Compensated absences Totals See independent auditors' report. Balance Balance July 1, June 30, 1995 Additions Deletions 1996 $20,580,000 $ - $ 865,000 $ 19,715,000 3,435,724 17,941 174,967 3,278,698 1,015,167 597,081 - 1,612,248 415.205 66.833 482.038 $25:446.096 681 855 $ 1.039.967 25.087.984 -25- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 4. GENERAL LONG-TERM DEBT: a. Financing Authority Revenue Bonds - Series 1991: On October. 1, 1991 the Santa Clarity 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 Clarita 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. 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. See independent auditors' report. -26- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 4. GENERAL LONG-TERM DEBT: a. Financing Authority Revenue Bonds - Series 1991 (Continued): Future debt service requirements on the bonds are as follows: Year Ending June 30, Principal Interest Total 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 2001 390,000 1,211,050 1,601,050 Thereafter 17.380.000 14.920.604 32.300.604 $19,715.000 $ 21.164.497 $40.879,497 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, 1996, the balance outstanding of $2,929,823 on the note included $2,557,436 in original loan proceeds and $372,387 of accrued interest. Information is not available to provide a debt payment schedule. See independent auditors' report. -27- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 4. GENERAL LONG-TERM DEBT (CONTINUED): b. Notes Payable (Continued): 2. In April, 1993 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, 1996, the unpaid principal balance was $348,875. Information is not available to provide a debt payment schedule. c. Advances from Other Funds: The Agency has received advances totaling $1,612,248, which includes $1,499,762 of principal and $112,486 of accrued interest, from the City's General Fund, which are recorded as "Advances to Other Funds" in the General Fund. Current year principal advances of $498,103 are recorded as "Other Financing Sources" in the Agency's Capital Projects Fund and interest for fiscal year 1995-96 of $98,978 in the Agency's Debt Service Fund. Beginning balance was decreased $61,470 for reduction in the debt in a prior year which had been erroneously classified as an operating transfer and increased by $13,508 for interest expense for the year ended June 30; 1995. 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, 1996 of $482,038. 5. DEFERRED REVENUE: At June 30, 1996, 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, 1996, $364,215 in fees collected in advance for providing recreation classes were recorded as deferred revenue in the General Fund to reflect fees not earned. See independent auditors' report. _28- CITY OF SANTA CLARITA • i NOTES TO FINANCIAL STATEMENTS • (CONTINUED) • June 30, 1996 • i • 5. DEFERRED REVENUE (CONTINUED): • • b. In the General Fund, accrued interest receivable of $112,486 added to the Advance to • the Redevelopment Agency has been recorded as deferred revenue as the accrued interest • is not considered a resource to finance current expenditures. • c. Other deferred revenue in the General Fund consisted of.$174,517 in advances received for construction projects for which the related expenditures had not been incurred. d. The City collects funds in advance from developers and receives grants to provide funds for construction of related projects. At June 30, 1996, $281,316 in the Bikeway Special Revenue Fund, $1,934,264 in the Developer Fees Special Revenue Fund, and $30,946 in the Sewer Maintenance Fund related to grant and developer receipts were recorded as deferred revenue as the related expenditures for the construction projects had not been incurred. 6. DUE TO OTHER GOVERNMENTS: a. The City has received $26,694,874'in grant funds in the Earthquake Special Revenue Fund to provide for repairs related to the 1994 Northridge Earthquake. As of June 30, 1996, the City has incurred $16,308,347 in expenditures related to the grant funds. $605,970 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 $10,992,497 to reflect the balance of working capital loans. b. The City received State and Local Partnership Project funds to provide for. the construction of the Commuter Rail Trail. The provisions of the contract provide for a portion of these funds to be paid to Metropolitan Transit Authority (MTA). As of June 30, 1996, the balance payable to MTA was $141,449 in the Proposition C Special Revenue Fund and $18,924 in the 1991 Revenue Bonds Capital Project Fund. See independent auditors' report. _29_ CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 7. 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, 1996: Enterprise Fund: Transit Master lease obligations Lease payable Notes payable Less:. Lease Discount Total Transit Enterprise Fund Long -Term Debt Internal Service Fund: Computer Replacement Fund: Lease payable a. Master Lease Obligations: Balance Balance July 1, June 30, 1995 Additions Deletions 1996 $ 1,454,877 $ - $ 204,351 $ 1,250,526 3,955,000 - 345,000 3,610,000 2,807,000 1,129,230 1,677,769 8,216,877 - 1,678,581 6,538,296 (21,634) (3,7081 (17,926) $ 8.195,243® 1 674 873 $ 6.520,370 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. -30- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 7. PROPRIETARY FUND TYPE LONG-TERM DEBT: a. Master Lease Obligations (Continued): Future lease payments under such obligations are as follows: Year 190,598 575,598 410,000 Ending 576,940 435,000 141,373 June 30, Principal Interest Total 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 2001 284.106 14.355 298.461 $ 1.250.526 241.777 $ 1.492,303 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. 1997 1998 1999 2000 2001 Thereafter See independent auditors' report. Principal Interest Total $ 365,000 $ 211,358 $ 576,358 385,000 190,598 575,598 410,000 166,940 576,940 435,000 141,373 576,373 460,000 113,845 573,845 1.555,000 154.573 1.709.573 $ 3.610.000 $ 978,687 $ 4.588,687 -31- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 7. 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 1997 $ 500,000 $ 29,000 $ 529,000 1998 500,000 7.250 507,250 $ 1,000,000 $ 36,250 $ 1,036,250 2) In June, 1995 the City entered into an agreement with the Newhall Land and Fane 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 1997 $ 677.769 $ 32.337 $ 710,106 d. Lease Payable: In April, 1996, the City entered into a lease with an option to purchase agreement in the amount of $525,000 for the lease of a computer system from Municipal Leasing Associates, Inc. As of June 30, 1996, the City had received $195,848 in proceeds from the Capital Lease which wasused to acquire computer equipment. The remaining proceeds will be received in fiscal year 1996-97. Interest, at 4.9%, and principal are payable semi-annually from November 9, 1996 through May 9, 1999. See independent auditors' report. -32- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 7. PROPRIETARY FUND TYPE LONG-TERM DEBT (CONTINUED): d. Lease Payable (Continued): Future lease payment requirements for the lease, assuming all proceeds have been received, are as follows: Year Ending June 30, 1997 1998 1999 8. INTERFUND BALANCES: Principal Interest Total $ 166,634 $ 23,612 $ 190246 174,864 15,381 190,245 183.502 6.743 190.245 $ 525,000 $ 45.736 $ 570.736 Interfund receivable and payable balances as of June 30, 1996 are as follows: Fund General Fund Special Revenue Funds: Proposition A State Park Fund Traffic Safety Community Development Block Grant (CDBG) Federal Aid Urban (FAU) Miscellaneous Grants Fund Transit Enterprise Fund Self -Insurance Internal Service Fund 9. DEFINED BENEFIT PENSION PLAN: Due From Due To $ 3,177,642 $ - - 255,873 - 904,899 - 22,916 - 161,746 - 336,811 - 161,288 - 1,316,760 17.349 $ 3,177.642 $ 3.177,642 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, 1996 was $8,852,072. The total payroll for the year was $10,423,790. See independent auditors' report. -33- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) . June 30, 1996 9. DEFINED BENEFIT PENSION PLAN (CONTINUED): 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. 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, 1995. 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. See independent auditors' report. -34- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 9. DEFINED BENEFIT PENSION PLAN (CONTINUED): The excess of net assets available for benefits over the pension benefit obligation applicable to the City.employees was $1,250,057 at June 30, 1995, as listed below. Pension benefit obligation: Retires and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 360,469 Current employees: Accumulated employee contributions, including allocated investment earnings 2,749,437 Employer -financed vested 1,366,355 Employer -financed nonvested 655.914 Total pension benefit obligation 5,132,175 Net assets available for benefits, at cost (Market value, $6,784,312) 6.382.232 Excess of net assets over pension benefit obligation $ 1,250,057 There were no changes in the pension benefit obligation from last year as a result of changes in benefit provisions or changes in actuarial methods and assumptions. 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, 1996. The significant actuarial assumptions used too compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. A contribution of $1,283,757 for normal costs was made to the system for 1996 in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1995. The City contributed employer contributions of $640,979, (7.2% of current covered payroll) and on behalf of employees. contributed $591,731 (6.7% of.current covered payroll). An additional $51,047 was contributed by the employees (.58% of current covered payroll), See independent auditors' report. -35- CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 9. DEFINED BENEFIT PENSION PLAN (CONTINUED): 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. The City entered the system in fiscal year 1988-1989. Therefore, the trend information from 1988-1989 through 1994-95 and employer contributions and covered payroll for 1988-1989 through 1995-1996 is summarized as follows: Net assets available for benefits (in hundreds) Pension benefit obligation (in hundreds) Net assets available for benefits expmssed as a percentage of pension benefit obligation Assets in excess (deficit) of pension benefit obligation (in hundreds) Annual covered payroll (in hundreds) Unfunded (assets in excess of) pension benefit obligation expressed as a percentage of annual covered paymll Employer contributions (in hundreds) Employer coattibutions expressed as a percentage of annual covered payroll. (These contributions were made in accordance via actuarially determined requirements). • Information at June 30, 1996 was not available. 1988-89 1989-90 1990-91 1991-92 1992.93 1993-94 1994-95 1995-96 $ 231.9 $ 4,452.8 $10,589.7 $18,952.3 $30,025.2 $46,886.0 $63,822.3 $ ' 406.9 3,230.4 8,527.1 15,912.0 27,591.3 35,785.9 51,321.8 57.0% 137.8% 124.2% 119.1% 108.8% 131.0% 124.4% ' (174.9) 1,224.4 2,062.6 3,040.4 2,433.9 11,100.1 12,500.6 ' 10,084.4 29,630.2 55,144.9 76-,089.6 72,445.3 74,087.5 83,113.3 - 88,520.7 1.7% (4,1%) (3.7%) (4.0%) (336%) (14.8%) (14.12%) 1,170.0 3,217.6 2,908.9 3,911.9 4,129.5 4,071.0 6,018.2 6,409.8 11.6% 10.9% 7.2% 6.5% 5.7% 5.5% 7.2% 7.2% See independent auditors' report. -36, CITY OF SANTA CLARITA • • NOTES TO FINANCIAL STATEMENTS • (CONTINUED) • June 30, 1996 10. 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 $3,176,177 are included in an Agency Fund in the City's financial statements. 11. INDIVIDUAL FUND DISCLOSURES: a. Deficit Fund Balances/Retained Earnings: Funds which have deficit fund balances/retained earnings at June 30, 1996 are as follows: Special Revenue Funds: Bikeway $ 73,936 Developer Fees 458,047 State Park 762,433 FAU 336,843 Earthquake 4,344,081 Miscellaneous Grants 3,784 Internal Service Fund - Self-insurance 544,490 • See independent auditors' report. • • -37- • • CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 11. 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 Self-insurance Fund has been designated in the General Fund and the City plans on recovering this amount through future operating transfers. b. Funds Where Expenditures Exceeded Appropriations: Actual expenditures exceed appropriations by $1,404 in the Park Improvement Special Revenue Fund, by $5 in the AQMD Special Revenue Fund, $68,152 in the General City Debt.Service Fund and by $1,293 in the Public Financing Authority Debt Service Fund. 12.. SELF-INSURANCE: The City is self-insured for the first $250,000 on each general liability claim against the City. At June 30, 1996 $522,730 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, 1996 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. Purchased insurance coverage is currently maintained for general liability claims greater than $250,000 up to a limit of $12,500,000. Settled claims have not exceeded any of these coverage amounts in any of the last three fiscal years and there were no reductions in the City's insurance coverage during the year ended June 30, 1996. Changes in the reported liability since June 30, 1994, resulted in the following: Liability as of June 30, 1994 Claims and changes in estimates during the year ended June 30, 1995 Claims payments during the year ended June 30, 1995 Liability as' of June 30, 1995 Claims and changes in estimates during the year ended June 30, 1996 Claims payments during the year ended June 30, 1996 Liability as of June 30, 1996 See independent auditors' report. -38- $ 589,045 1,311,714 (902.787) 997,972 111,113 (586.355) $ 522.730 CITY OF SANTA CLARI NOTES TO FINANCIAL STATE qENTS (CONTINUED) June 30, 1996 13. 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. The City's reserves and designations at. June 30, 1996, are tabulated below, followed by explanations as to the nature and purpose of each reserve and designation. TOTAL RESERVES 4,324,568 $ 3.421.353 $ 2.279.0948$ 57.195 $ 489.500 Special Capital General Revenue Project Designations: Fund Funds Funds Self-insurance $ 544,490$ - Earthquake 4,344,081 - Capital improvements - - Special revenue purposes - 10,709,236 Contingencies 3.280.934 - TOTAL DESIGNATIONS 8,169,505 $10.709.236 See independent auditors' report. -39- 2,087,921 $ 2.087.921 Special Debt Capital General Revenue Service Project Enterprise Reserves: Fund Funds Funds Funds Fund Continuing appropriations $ 379,131 $ 676,729$ - $ 188,608 $ - Encumbrances 2,169,989 2,732,064 - 668,587 - Advances to other funds 1,612,248 - - - - Accounts receivable 125,902 - - - - Prepaid items 37,298 12,560 - - - Debt service - 2.279.094 489,500 TOTAL RESERVES 4,324,568 $ 3.421.353 $ 2.279.0948$ 57.195 $ 489.500 Special Capital General Revenue Project Designations: Fund Funds Funds Self-insurance $ 544,490$ - Earthquake 4,344,081 - Capital improvements - - Special revenue purposes - 10,709,236 Contingencies 3.280.934 - TOTAL DESIGNATIONS 8,169,505 $10.709.236 See independent auditors' report. -39- 2,087,921 $ 2.087.921 CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) . June 30, 1996 13. RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED): a. Reserved for Continuing Appropriations - Appropriations for capital projects and other expenditures which are unexpended as of June 30, 1996 will carry forward as continuing appropriations to.be expended in 1996-97. 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 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. d. 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. e. 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. f. Reserved for Debt Service - These reserves represent amounts accumulated in accordance with a bond indenture or similar covenant. g. Designated for Self-insurance - This reserve is for the deficit retained earnings in the Internal Service Fund for Self-insurance. h. Designated for Earthquake This amount has been designated to fund the deficit fund balance in the Special Revenue Earthquake Fund. 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. k. Designated for Contingencies - The remainder of the unreserved. fund balances in the General Fund has been designated for general contingencies. See independent auditors' report. CITY OF SANTA CLARITA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 1996 14. PRIOR PERIOD ADJUSTMENTS: Noted below are adjustments to fund balance and retained earnings at June 30, 1995. a. The beginning retained earnings in the Transit Enterprise Fund was increased by $93,629 to correct for expenses related to building improvements not capitalized at June 30, 1995. b. As a result of the City's implementation of Governmental Accounting Standards Board Statement No. 22, "Accounting for Taxpayer -Assessed Tax Revenues in Governmental Funds", prior period adjustments were made to the beginning fund balance in the following funds: 1) Beginning fund balance in the General Fund was increased by $1,718,280 for adjustments made to sales tax revenues. 2) Beginning fund balance in the Gas Tax Fund was increased by $157,392 for adjustments made to gas tax revenues. 15. SEGMENT INFORMATION: Net working capital deficit of the Transit Enterprise System at June 30, 1996 was as follows: Current assets $ 1,140,976 Current liabilities payable from current assets (3.926.767) Net working capital (deficit) $ (2.785.791) 16. POST EMPLOYMENT BENEFITS: In addition to the retirement benefits described in Note 9, 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 1 and each August 1 thereafter, the City's portion of the premium is increased by 5% per year of the maximum until the maximum is reached. The City funds these amounts on a pay-as-you-go basis. For fiscal year 1995-96 there were two eligible participants, for which the City paid $1,607 for medical insurance premiums. 17. CONTRIBUTED CAPITAL: Changes in the Transit Enterprise Fund's contributed capital were as follows: Balance June 30, 1995 $ 452,704 Grants restricted for capital outlay 1,292,560 Current depreciation on contributed assets (123.1931 Balance June 30, 1996 $ 1.622.071 See independent auditors' report. -41- 10 41 7 P � r-..«: .. a .s; xm ,�... "„` �, .�`'ti ,. l�j�;r�,�l � w `�i 4�+• ',;< "tai •� ���� 5 "-�..;,.- -. .__ -a.' fi�>1 {r a.i �'� } 4yAZ F,%*r �1+,`7f�"y' w ,r ..''� �t'a,.YdS 7�. iY.�, «. f.. • '�' dd�+ S .� 5 �# "" ��'�f t M1 n f 9`r e� � d r � �M L R � x, tl •a f [�' . 5: Z e _! r, « � +s.F V � � , ' �i`-� `"'� t i� � f ,P �at t i y >r. i t :.+rA a ,w qtr !.._•—(T�.'ti r a{TMir'�+`- .'} r i�.&J� iy er_:', •{� ! 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M y 4 r.F d m „��vCd ti.�� � •. 1 ' °W sv.i"r � Ci@"W f^rv.. - l ^. � Yr'v r'�.��� ♦' �,°J.., 'r � _ �.1 ^. ,3 * � a. y.£� .'� � ';moi ��'r+° 4 `1'r' �° j'"'� �q .,3_�y, j • �' x,�� * ^An a .. 1�. r � _ _. _ Via`-- JY�.+.-t ilt _ '.YM • ^1e wI-{ "'� . �.,. _ �J SUPPLEMENTARY INFORMATION CITY OF SANTA CLARITA COMPARATIVE BALANCE SHEET GENERAL FUND June 30, 1996 and 1995 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 advances to other funds Reserved for accounts receivable Reserved for prepaid items Unreserved: Designated for self—insurance Designated for earthquake Designated for contingencies • J m IWE6 J TOTAL LIABILITIES AND FUND BALANCE —42— June 30, June 30, 1996 1995 S 6,961,514 S 4,110,232 2,915,918 951,467 104,018 59,619 3,177,642 3,512,294 492,414 — 37,298 40,384 1,612,248 1,063,129 S 15,301,052 S 9,737,125 S 2,111,731 S 2,783,358 651,218 284,406 44,030 68,412 2,806,979 3,136,176 379,131 441,876 2,169,989 1,268,498 1,612,248 1,063,129 125,902 74,528 37,298 40,384 544,490 1,326,173 4,344,081 2,386,361 3,280,934 — 12,494,073 6,600,949 S 15,301,052 S 9,737,125 GENERAL FUND i • 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 40 funds. • CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE—BUDGET AND ACTUAL GENERALFUND For the year ended June 30, 1996 With comparative actual amounts for the year ended June 30,1995 REVENUES: Taxes Licenses and permits Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue TOTAL REVENUES EXPENDITURES: Current operating: General government Public safety Public works Parks and recreation 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 BALANCE—BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCE—BEGINNING OF YEAR, AS RESTATED FUND BALANCE —END OF YEAR 1996 1995 Variance Favorable Budget Actual (Unfavorable) Actual $ 21,826,460 S 22,706,122 S 879,662 S 22,169,202 2,025,900 1,749,220 (276,680) 1,272,109 838,515 1,060,362 221,847 902,009 9,561,338 6,428,731 (3,132,607) 5,654,276 116,000 131,635 15,635 122,996 1,603,690 1,630,350 26,660 1,484,845 302,250 637,476 335,226 501,710 36,274,153 34,343,896 (1,930,257) 32,107,147 9,841,447 6,213,054 3,628,393 3,618,910 9,801,543 9,754,629 46,914 10,116,169 1,366,885 1,174,295 192,590 3,414,684 7,582,228 7,065,890 516,338 6,414,630 5,888,249 4,547,573 1,340,676 3,702,011 5,565,685 836,947 4,728,738 1,125,679 40,046,037 29,592,388 10,453,649 28,392,083 (3,771,884) 4,751,508 8,523,392 3,715,064 1,247,653 2,263,783 1,016,130 1,441,584 (250,000) (2,840,447) (2,590,447) (2,668,022) 997,653 (576,664) (1,574,317) (1,226,438) (2,774,231) 4,174,844 6,949,075 2,488,626 6,600,949 6,600,949 — 4,154,932 1,718,280 1,718,280 — (42,609) 8,319,229 8,319,229 — 4,112,323 $ 5,544,998 $ 12,494,073 S 6,949,075 S 6,600,949 —43— 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). Bridee 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. Earthouake Fund - To account for receipts and disbursements associated with reconstruction projects as a result of the 1994 Northridge earthquake. Landscaoe 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 - Tb account for receipts and disbursements for miscellaneous grants. Sewer Maintenance Fund - To account for monies received from developers as sewer frontage fees to be used to fund sewer maintenance projects. CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS June 30, 1996 With comparative totals for June 30, 1995 ASSETS Cash and investments Accounts receivable Interest receivable Due from other funds Due from other governments Prepaid items TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued liabilities Deferred revenues Due to other governments Due to other funds TOTAL LIABILITIES FUND BALANCES (DEFICITS): Reserved for encumbrances Reserved for continuing appropriations Reserved for prepaid items Unreserved: Designated for special revenue purposes Undesignated Bridge and Developer Bikeway Thoroughfare Fees Gas Tax $ 213,036 $ 6,445,366 $ 479,192 $ 1,616,226 — — 26,253 246,790 1,625 50,717 3,674 12,698 1,164,753 — S 214,661 S 6,496,083 $ 1,673,872 S 1.875,714 $ 7,281 S — S 197,655 $ 215,800 281,316 — 1,934,264 — 288,597 — 2,131,919 215,800 — — — 550,081 57,170 — 6,496,083 — 1,052,663 (73,936) — (458,047) — TOTAL FUND BALANCES (DEFICITS) (73,936) 6,496,083 (458,047) 1,659,914 TOTAL LIABILITIES AND FUND BALANCES $ 214,661 $ 6,496.053 S 1,673,872 $ 1,875,714 —44— Park Proposition Special State TDA Traffic Improvement A Assessment Park Funds Safety CDBG S 351,742 $ 16,476 S 234,333 S 4,360 $ 1,877,314 S 2,916 $ - - 372,037 - 79,500 - 22,916 - 2,775 3,424 11850 - 22,296 2,374 - - 29,385 2,678 75,000' - - 380,908 - - - - - - 12,560 S 354.517 S 421.322 S 238,861 S 158,860 $ 1,899.610 S 28,206 $ 393,468 S 3,153 S 1,018 S 7,182 $ 16,394 S 43,851 S - S 231,722 255,873 - 904,899 - 22,916 161,746 3,153 256,891 7,182 921,293 43,851 22,916 393,468 164,431 29,869 - 566,585 - - - - - 197,188 - - - - 12,560 351,364 - 201,810 - 1,091,986 5,290 - - - - (762,433) - - (12,560) 351,364 164,431 231,679 (762,433) 1,855,759 5,290 S 35 S 421,322 S 238.861 $ 158,860 $ 1.899,610 S 28,206 $ 393,468 (Continued) -45- CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS (CONTINUED) June 30, 1996 With comparative totals for June 30, 1995 ASSETS Cash and investments Accounts receivable Interest receivable Due from other funds Due from other governments Prepaid items TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued liabilities Deferred revenues Due to other governments Due to other funds TOTAL LIABILITIES FUND BALANCES (DEFICITS): Reserved for encumbrances Reserved for continuing appropriations Reserved for prepaid items Unreserved: Designated for special revenue purposes Undesignated TOTAL FUND BALANCES (DEFICITS) TOTAL LIABILITIES AND FUND BALANCES Proposition FAU C AQMD — S — $ 618,514 E 131,166 S 2,544 36,391 — 4,724 1,000 — 1,884,950 15,570 Aid to Cities 78,507 600 $ — S 2,510,732 S 184,127 $ 79,107 $ 32 $ 224,638 $ 1,793 S — — 141,449 — — 336,811 — — — 336,843 366,087 1,793 — 951,326 — — 312,271 — — 881,048 182,334 79,107 (336,843) — — — (336,843) 2,144,645 182,334 79,107 S — S 2,510,732 $ 184,127 S 79,107 —46— S 24,834 $ 8,667 S 176,881 $ 2,146 S - S 1,163,047 $ 4,303,787 - - - - 30,946 2,246,526 2,072,138 10,992,497 - - - - 11,133,946 10,592,585 - - - 161,288 - 1.843,533 1,926,988 11,017,331 8,667 176,881 163,434 30,946 16,387,052 18,895,498 3,987 465,785 - - 2,732,064 4,936,095 - - 110,100 - - 676,729 711,630 - - - 12,560 - - (4,344,081) Landscape Stormwater Miscellaneous Sewer Totals - 8,138,905 Earthquake Maintenance Utility Grants Maintenance June 30, June 30, Fund District#1 Fund Fund Fund 1996 1995 S 5,881,998 S 57,500 S 991,886 $ - $ 30,946 S 19,031,478 S 18,164,634 61,470 - 75,361 159,650 - 1,082,912 2,837,755 46,143 450 7,774 - - 162,124 235,637 - - - - - - 61,470 683,639 - - - - 4,236,883 6,644,508 - - - - - 12,560 295 S 6,673,250 S 57,950 S 1,075,021 $ 159,650 S 30,946 $ 24,525,957 S 27,944,299 S 24,834 $ 8,667 S 176,881 $ 2,146 S - S 1,163,047 $ 4,303,787 - - - - 30,946 2,246,526 2,072,138 10,992,497 - - - - 11,133,946 10,592,585 - - - 161,288 - 1.843,533 1,926,988 11,017,331 8,667 176,881 163,434 30,946 16,387,052 18,895,498 3,987 465,785 - - 2,732,064 4,936,095 - - 110,100 - - 676,729 711,630 - - - 12,560 - - (4,344,081) 45,296 322,255 - - - (3,784) _ - 10,709,236 - (5,991,684) 7,055,523 (3,654,447) (4,344,081) 49,283 898,140 (3,784) - 8,138,905 9,048,801 S 6,673,250 $ 57,950 S-1,075,021 S 159,650 S 30,946 S 24,525,957. S 27.944,299 -47- CITY OF SANTA CLARTTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL SPECIAL REVENUE FUNDS For the year ended June 30, 1996 With comparative totals 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 TOTAL REVENUES EXPENDITURES: Current operating: General government Public works Community development Capital outlay TOTAL EXPENDITURI 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 Bridge and Developer Gas Bikeway Thoroughfare Fees Tax S 859,256 $ 2,205,087 $ 682,098 $ — 22,398 257,566 20,358 78,532 147,580 — — 2,653,837 — — — 44,829 1,029,234 2,462,653 702,456 2,777,198 — 1,977,556 856,875 — 484,069 319,298 856,875 — 484,069 2,296,854 172,359 2,.462,653 218,387 480,344 32,600 (149,961) — — (118,642) (149,961) — — (86,042) 22,398 2,462,653 218,387 394,302 (96,334) 4,033,430 (676,434) 1,108,220 — — — 157,392 (96,334) 4,033,430 (676,434) 1,265,612 S (73,936) E 6,496,083 E (458,047) .S 1,659,914 —48— Park Proposition Special State TDA Traffic Improvement A Assessment Park Funds Safety CDBG $ - $ - $ - $ - E - $ - $ - 9,981 9,760 10,617 4,904 114,499 10,568 - 287,776 2,475,398 - 523,716 2,676,363 - 1,180,503 - - - - - 313,775 - - - 104,357 - - - - - - - - - - 140 297,757 2,485,158 114,974 528.620 2,790,862 324,343 1,180,643 - - 97,969 - - - 630,781 28,752 39,991 - 1,722,106 1,986,139 - 551,388 28,752 39,991 97,969 1,722,106 1,986,139 - 1,182,169 269,005 2,445.167 17,005 (1,193,486) 804,723 324,343 (1,526) - (2,289,307) (9,712) - (2,626,605) (321,969) - - (2,289,307) (9,712) - (2,626,605) (321,969) - 269,005 155,860 7,293 (1,193,486) (1,821,882) 2,374 (1,526) 82,359 8,571 224,386 431,053 3,677,641 2,916 1,526 82,359 8,571 224,386 431,053 3,677,641 2,916 1.526 $ 351,364 S 164,431 S 231,679 S (762,433) E 1,855,759 $ 5,290 E - (Continued) -49- 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, 1996 With comparative totals 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 TOTAL REVENUES EXPENDITURES: Current operating: General govern men t 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 Proposition Aid to FAU C AQMD Cities — 34,529 4,153 9,534 3,244,899 154,744 — — 3,279,428 158,897 9,534 — 14,345 322 2,602,145 — 149,202 322 2,602,145 14,345 149,202 (322) 677,283 144,552 (139,668) 45,195 — (745,790) (15,569) — (700,595) (15,569) — (322) (23,312) 128,983 (139,668) (336,521) 2,167,957 53,351 218,775 (336,521) 2,167,957 53.351 218,775 S (336,843) f 2,144,645 $ 182,334 S 79,107 —50— (1,802,653) Landscape Stormwater Miscellaneous Sewer Totals Earthquake Maintenance Utility Grants Maintenance June 30, June 30, Fund District#1 Fund Fund Fund 1996 1995 15,842,898 -. - - - $ - S - S - s - $ - S 3,746,441 $ 4,795,744 291,931 2,173 58,318 - - 939,821 913,988 108,633 - - 159,650 - 13,613,099 20,766,249 - - - - - 313,775 295,357 - 51,706 1,882,431 - - 2,038,494 1,936,938 360,652 - - - - 405,621 11,059 761,216 53,879 1,940,749 159,650 - 21,057,251 28,719,335 - - - - - 14,345 804,168 - - - - - 1,977,556 1,859,644 - - 1,356,845 - - 2,085,595 1,045,070 2,563,869 15,590 88,830 159,704 - 11,568,280 23,507,605 2,563,869 15,590 1,445,675 159,704 - 15,645,776 27,216,487 (1,802,653) 38,289 495,074 (54) - 5,411,475 1,502,848 - 7,097 - - - 84,892 140,728 - - (286,100) - - (6,563,655) (8,144,787) - 7,097 (286,100) - - (6,478,763) (8,004,059) (1,802,653) 45,386 208,974 (54) - (1,067,288) (6,501,211) (2,541,428) 3,897 689,166 (3,730) - 9,048,801 15,842,898 -. - - - - 157,392 (292,886) (2.541,428) 3,897 689,166 (3,730) - 9,206,193 15,550,012 $ (4,344,081) $ 49,283 $ 898.140 S (3,784) $ - S 8,138,905 $ 9,048,801 -51- CITY OF SANTA CIARIIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGETANDACTUAL 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 SOURCESOVER(UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES(DEFICTFS)- BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES (DEFICITS) BEGINNING OF YEAR. AS RESTATED FUND BALANCES (DEFICITS)— END OF YEAR ALL SPECIAL REVENUE FUNDS For the year ended June 30, 1996 1,169.970 856,875 313,095 — — 1,169,970 856,875 313,095 — — — (157,970) 172.359 330,329 447,000 2.462,653 2.015.653 (152,000) (149,961) 2,039 — — -- (152.000) (149,961) 2.039 — — — (309.970) 22.398 332.368 447,000 2,462,653 2.015.653 (96.334) (96,334) (96.334) (96.334) 4.033.430 4,033.430 4.033.430 4,033,430 S (4 S (73,936) S 332.368 S 4.480.430 S 6,496,083 S 2.015,653 —52— Bikeway Bridge and Thoroughfare • Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 962,000 $ 859,256 S (102,744) S 375,000 $ 2.205.087 S 1.830.087 — 22,398 22.398 72,000 257,566 185,566 50.000 147,580 97,580 — — — 1,029,234 17,234 447,000 1.012.000 2,462.653 2,015,653 1,169.970 856,875 313,095 — — 1,169,970 856,875 313,095 — — — (157,970) 172.359 330,329 447,000 2.462,653 2.015.653 (152,000) (149,961) 2,039 — — -- (152.000) (149,961) 2.039 — — — (309.970) 22.398 332.368 447,000 2,462,653 2.015.653 (96.334) (96,334) (96.334) (96.334) 4.033.430 4,033.430 4.033.430 4,033,430 S (4 S (73,936) S 332.368 S 4.480.430 S 6,496,083 S 2.015,653 —52— - - - 2,367,099 Developer Fees 389,543 Gas Tax 4,782,441 484,069 4.298,372 779.325 319,298 Part Improvement 27,348 28.752 4,782,441 484,069 4.298.372 3.146,424 Variance 849,570 27,348 28,752 (1,404) Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 3,518,010 S 682,098 S (2,835,912) S - S - S - S - $ - S - - 20,358 20.358 10,000 78,532 68,532 2,000 91981 7,981 - - - 2,584,619 2,653,837 69,218 - 287,776 287,776 - - 22,625 44,829 22,206 - 3,518,010 702,456 (2.815,554) 2.617244 2,777,198 159,954 2.000 297,757 295,757 - - - 2,367,099 1,977,556 389,543 - - - 4,782,441 484,069 4.298,372 779.325 319,298 460,027 27,348 28.752 4,782,441 484,069 4.298.372 3.146,424 2,296,854 849,570 27,348 28,752 (1,404) (1,264,431) 218.387 1,482.818 (529,180) 480,344 1,009.524 (25,348) 269.005 294,353 - - - 32,600 - - - (267,810) 32,600 - - - - (118,642) 149,168 - - - - - - (235,210) (86,042) 149,168 - - - (1,264,431) 218,367 11482AIS (764,390) 394,302 1.158,692 (25.348) 269,005 294,353 (676,434) - (676,434) - - 1,108220 - 157,392 1.108220 - 82,359 82,359 - 157.392 - (676.434) (676.434) - 1.265,612 1.265.612 - 82.359 82.359 - S (1,940.865) L_(458.047) S 1.482.818 S 501.222 S 1,659,914 S 1,158.692 S 57.011 S 351.364 S 294.353 (Continued) -53- CITY OF SANTA CL4RITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET ANDACTUAL REVENUES: Developer fees Use of money and property Revenue from orb" agencies Fines and forfeitures Service charges Other revenue TOTALREVENUES EXPENDITURES: Current operating General govern ment Public works Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES} Operating transfers in Operating trans6:rs out TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER FINANCING SOURCESOVER(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, 1996 PropositionA Special Assessment Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S - S - S - S 2,700 S - $ (2,700) - 9,760 9,760 3,000 10,617 7,617 2.252,600 2,475,398 222,798 - - - - - - 99,487 104,357 4,870 2,252,600 2,485,158 232,558 105,187 114,974 9,787 - - - 180,714 97,969 82,745 200,000 39,991 160,009 - 200,000 39,991 160,009 180,714 97,969 82.745 2.052.600 2,445.167 392,567 (75,527) 17,005 92,532 (2,411.538) (2.289,307) 122.231 (8,500) (9,712) (1.212) (2,411,538) (2,289,307) 122.231 (8,500) (9,712) (1,212) (358.938) 155.860 514,798 (84,027) 7.293 91,320 8.571 8,571 - 224,386 224,386 8.571 8,571 - 224,386 224.386 S (350.367) S 164,431 1 514,798 S 140,359 S 231.679 S 91,320 -54- 5,046,653 State Park 3,324,547 4,162,988 TDA Funds 2.176,849 — — 5.046,653 Traffic Safety 3,324,547 4,162,988 Variance 2,176,849 — — — 55.782 Variance (33,369) 3,677,641 Variance 2.916 — Favorable (744,653) (1,193,486) (448,833) (4,162,988) (1,821.882) Favorable — 2.374 2,374 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) E — E — 3 —. S — S — $ — S S — S - - 4,904 4.904 — 114,499 114,499 51000 10,568 5,568 4,302,000 523,716 (3,778.284) 2.682,387 2,676,363 (6,024) — — - - — — — — — 283,600 .313,775 30,175 4,302.000 528.620 (3,773,380) 2,682,387 2.790,862 108.475 288,600 324,343 35.743 5,046,653 1,722,106 3,324,547 4,162,988 1,986.139 2.176,849 — — 5.046,653 1,722,106 3,324,547 4,162,988 1.986.139 2,176,849 — — — (744.653) (1,193.486) (448,833) (1.480,601) 804,723 2.285.324 288.600 324,343 35,743 — — — (2.682.387) (2,626,605) 55.782 (288,600) (321,969) (33.369) 2.916 — — — — (2,682,387) (2.626.605) 55.782 (288,600) (321.969) (33,369) 3,677,641 — 2.916 2.916 — (744,653) (1,193,486) (448,833) (4,162,988) (1,821.882) 2,341,106 — 2.374 2,374 431,D53 431,053 — 3,677,641 3,677,641 — 2,916 2.916 — 431.053 431,053 — 3,677,641 3,677,641 — 2.916 2.916 — S (313,600) S[762.433) t (448.833) f (48 5,347) $ 1,855,759 S 2.341.106 S 2.916 S 5.290 S 2,374 (Continued) QfM 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 govern meat 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 SOURCESOVER(UNDER) EXPENDITURES AND OTHER FINANCING USES ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30, 1996 CDBG FAU Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ S — S 7,010.757 11180,503 (5,830,254) 694,200 — (694,200) 140 140 — — — 7,010,757 1,180,643 (5.830,114) 694,200 (694,200) 5,856228 630,781 5.225.447 — — — 830,078 551,388 278,690 700.586 322 700,264 6,686,306 1.182,169 5,504.137 700,586 322 700.264 324.451 (1.526) (325.977) (6,386) (322) 6.064 (5,300) — 5.300 — — — (5.300) — 5.300 — — — 319,151 (1.526) (320.677) (6.386) (322) 6,064 FUND BALANCES (DEFICITS)- BEGINNINGOFYEAR 1,526 1.526 — (336,521) (336,521) PRIOR PERIOD ADSUSTMENT FUND BALANCES (DEFICITS) BEGINNING OF YEAR. AS RESTATED FUND BALANCES (DEFICITS)— END OF YEAR 1.526 1,526 — (336.521) (336.521) S 320,677 f — S (320.677) S (342.907) L11361411 S 6,064 —56— 14340 14,345 (5) - - 4,296,410 2,602,145 1,694265 - - 149,202 149,202 - 4,296,410 2,602,145 1,694265 14,340 14,345 (5) 149,202 149,202 (1,009.601) 677.283 1.686,884 143,492 144452 1.060 (149,202) (139.668) 9.534 45,195 45,195 - - - - - (600,000) (745.790) (145,790) (30.000) (15,569) 14.431 - - - (600,00(y) (700,595) (100.595) (30.000) (15,569) 14.431 - - - (1,609.601) (23,312) 1,586289 113,492 128,983 15,491 (149,202) (139.668) 9,534 2.167.957 2,167,957 2.167,957 2.167.957 53,351 53.351 218,775 218.775 53.351 53.351 - 218.775 218,775 S 559,356 S 2344.645 S 1,586289 S 166,843 S 182.334 S 15,491 S 69.573 S 79,107 S 9,534 (Continued) -57- PropwitionC 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 - 50.000 34,529 (15,471) - 4,153 4,153 - 9,534 9.534 3,236.809 3.244,899 8,090 157,832 154,744 (3,088) - - - 3,286,809 3,279,428 (7,381) 157,832 158,897 1,065 - 9,534 9,534 14340 14,345 (5) - - 4,296,410 2,602,145 1,694265 - - 149,202 149,202 - 4,296,410 2,602,145 1,694265 14,340 14,345 (5) 149,202 149,202 (1,009.601) 677.283 1.686,884 143,492 144452 1.060 (149,202) (139.668) 9.534 45,195 45,195 - - - - - (600,000) (745.790) (145,790) (30.000) (15,569) 14.431 - - - (600,00(y) (700,595) (100.595) (30.000) (15,569) 14.431 - - - (1,609.601) (23,312) 1,586289 113,492 128,983 15,491 (149,202) (139.668) 9,534 2.167.957 2,167,957 2.167,957 2.167.957 53,351 53.351 218,775 218.775 53.351 53.351 - 218.775 218,775 S 559,356 S 2344.645 S 1,586289 S 166,843 S 182.334 S 15,491 S 69.573 S 79,107 S 9,534 (Continued) -57- 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 TOTAL REVENUES EXPENDITURES: Current operating: General govern meat 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 SOURCESOVER(UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCES (DEFICM)- BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT FUND BALANCES (DEFICITS) BEGINNING OF YEAR, AS RESTATED FUND BAL4NCES(DEFICITS)- ENDOFYEAR ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30. 1996 Earthquake Fuad 2,563,869 Landscape Maintenance District01 59,860 Variance 44,276 5.816.866 Variance 3.252,997 Favorable 15,590 44,270 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) - - 291,931 291,931 500 2,173 1.673 293.328 108.633 (184,695) - - - - - - 55,500 51,706 (3.794) - 360,652 360,652 - 293,328 761.216 467,888 56,000 53,879 (2,121) 5.816.866 2,563,869 3,252,997 59,860 15,590 44,276 5.816.866 2,563.869 3.252,997 59,860 15,590 44,270 (5,523,538) (1,802.653) 3,720.885 (3,860) 38.289 42.149 - 7,097 7,097 7.097 7.097 (5.523.538) (1.802.653) 31720.885 (3,860) 45,386 49.246 (2,541,428) (2.541,428) - 3,897 3.897 (2.541.428) (2.541.428) - 3.897 3.897 S_18.064.9661 S (4.344.081) S 3,720.885 S 37 S 49.283 S 49.246 —58— Stormwater Utility Fund Miscellaneous Grants Fund Sewer Maintenance Fund — Variance 208,274 Variance Variance 825,270 Favorable 665,566 — — Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ — S — S — S — S — $ — E — $ — S - - 58,318 58,318 — — — — — - - — — 707,000 159,650 (547,350) — — — 1,776,090 1.882.431 106,341 — — — — — — 1,776.090 1,940,749 164,659 707,000 159,650 (547,350) — — — 2.216,741 1,356.845 859.896 150,000 — 150,000 — — — 208,274 88,830 119.444 825,270 159,704 665,566 — — 2.425.015 1,445.675 919,340 975.270 159,704 815.566 — — — (648.925) 495.074 1,143,999 (268,270) (54) 268.216 — — — (286.100) (286.100) — — — — — — — (286.100) (286.100) — — — — — — — (935.025) 208,974 1.143.999 (268.270) (54) 268.216 — — 689.166 689.166 — (3.730) (3,730) — — — 689.166 689,166 — (3.730) (3.730) — — — S (245.859) 1 898.140 S 1.143,9991 (272,000) S (3,784) S 268.216 S (Continued) —59— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30, 1996 OTHER FINANCING SOURCES (USES} Operating transfers in 32,600 84.892 52,292 Totals (6,732235) (6,563,655) 168,580 TOTAL OTHER FINANCING SOURCES (USES) Variance 'Favorable Budget Actual (Unfavorable) REVENUES: Developer fees S 4,857,710 S 3,746,441 S (1,111269) Useof money and property 142,500 939,821 797,321 Revenue from other agencies 23,971,532 13,613.099 (10,358.433) Fines and forfeitures 283,600 313.775 30.175 Service charges 1,931,077 2,038.494 107,417 Other revenue 22.625 405,621 382,996 TOTAL REVENUES 317209,044 21,057,251 (10,151,793) EXPENDITURES: Current operating: General government 14,340 14,345 (5) Public works 2367,099 1,977,556 389343 Community development 8,403.683 2.085.595 6,318,088 Capital outlay 29,055,271 11.568,280 17,486,991 TOTAL EXPENDITURES 39.840,393 15,645,776 24,194.617 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (8.631.349) 5,411,475 14,042,824 OTHER FINANCING SOURCES (USES} Operating transfers in 32,600 84.892 52,292 Operating transfers out (6,732235) (6,563,655) 168,580 TOTAL OTHER FINANCING SOURCES (USES) (6,699,635) (6,478,763) 220,872 EXCESS OF REVENUES AND OTHER FINANCING SOURCESOVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (15,330,984) (1.067288) 14;263,696 FUND BALANCES (DEFICITS)— BEGINNING OF YEAR 9,048.801 9.048,801 — PRIOR PERIOD ADJUSTMENT 157.392 157392 FUND BALANCES (DEFICITS) BEGINNING OF YEAR, AS RESTATED 9,206,193 9,206.193 — FUND BALANCES(DEFICITS)— ENDOFYEAR S (6.124,791) S 8.138.905 S 14,263.696 1 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 -tern obligations. Public Financing Authority - To account for principal and interest payments on the 1991 Revenue Bonds issued by the Santa Clarita Public Financing Authority. Redevelopment A eg ncy - To account for principal and interest payments on the loan from the City. ASSETS: Cash and investments with fiscal agent CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS June 30, 1996 With comparative totals for June 30, 1995 General Public City Financing Redevelopment Debt Authority Agency Totals June 30, June 30, 1996 1995 S — S 2,279,094 S — S 2,279,094 $ 2,273,257 FUND BALANCES: Reserved for debt service S S 2,279,094 S — S 2,279,094 S 2,273,257 —61— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS For the year ended June 30, 1996 With comparative totals for the year ended June 30, 1995 General Public Totals City Financing Redevelopment June 30, June 30, Debt Authority Agency 1996 1995 REVENUES: Use of money and property $ — $ 117,431 $ — S 117,431 S 105,808 EXPENDITURES: Principal retirement 174,967 865,000 — 1,039,967 1,096,167 Interest and fiscal charges 303,685 1,351,293 98,978 1,753,956 1,588,879 TOTAL EXPENDITURES EXCESS OF REVENUES (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Advances from other funds Operating transfers in TOTAL OTHER FINANCING SOURCES EXCESS OF REVENUESAND OTHER FINANCING SOURCES EXPENDITURES FUND BALANCES— BEGINNING OF YEAR FUND BALANCES— END OF YEAR 478,652 2,216,293 98,978 2,793,923 2,685,046 47( 8,652) (2,098,862) (98,978) (2,676,492) (2,579,238) 478,652 2,104,699 98,978 98,978 - - 2,583,351 2.592,022 478,652 2,104,699 98,978 2,682,329 2,592,022 5,837 — 2,273,257 5,837 12,784 — 2,273,257 2,260,473 $ — S 2,279,094 $ — $ 2,279,094 $ 2,273,257 —62— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL ALL BUDGETED DEBT SERVICE FUNDS For the year ended June 30, 1996 REVENUES: Use of money and property EXPENDITURES: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Operating transfers in EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES FUND BAL.ANCES— BEGINNING OF YEAR FUND BALANCES— END OF YEAR —63— General City Debt Variance Favorable Budget Actual (Unfavorable) s — $ — S — 175,000 174,967 33 235,500 303,685 (68,185) 410,500 478,652 (68,152) (410,500) (478,652) (68,152) 478,652 478,652 — 68,152 — (68,152) S 68,152. $ — S (68,152) Public Financing Authority Totals Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S — S 117,431 S 117,431 $ — S 117,431 S 117,431 865.000 865,000 — 1,040,000 1.039,967 33 1,350.000 1,351,293 (1.293), 1,585,500 1,654,978 (69,478) 21215,000 2,216,293 (1,293) 2,625,500 2,694,945 (69,445) (2.215,000) (2,098,862) 116,138 (2,625,500) (2,577,514) 47,986 2,104,699 2,104,699 478,652 2,583,351 2,104,699 (2,215.000) 5,837 2.273,257 2.273.257 2,220,837 (2,146,848) 5,837 2.273,257 2.273.257 2,152,685 S 58.257 S 2,279,094 S 2.220,837 S 126.409 S 2.279,094 S 2,152,685 —64— 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. CommunitFacilities 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 Clarita Public Financing Authority. CITY OF SANTA CLARITA COMBINING BALANCE SHEET ALL CAPITAL PROJECT FUNDS June 30, 1996 With comparative totals for June 30, 1995 Community LIABILITIES AND FUND BALANCES LIABILITIES: Facilities 1991 Totals Redevelopment District Revenue June 30, June 30, Due to other governments Agency No. 92-1 Bonds 1996 1995 ASSETS 3,047 — 42,718 45,765 220,022 Cash and investments $ 3,047 $ — $ 1,677,657 S 1,680,704 $ 6,766,103 Cash and investments with 668,587 — Reserved for continuing fiscal agent — 22,324 — 22,324 2.441,949 Interest receivable — — 800 800 30,764 Due from other governments — — 1,287,053 1,287,053 — TOTALASSETS S 3.047 S 22,324 S 2,965,510 L 2,990,881 $ 9,238,816 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued liabilities S 3,047 S — $ 23,794 S 26,841 $ 220,022 Due to other governments — — 18,924 18,924 — TOTAL LIABILITIES 3,047 — 42,718 45,765 220,022 FUND BALANCES: Reserved for encumbrances — — 668,587 668,587 — Reserved for continuing appropriations — — 188,608 188,608 — Unreserved: Designated for capital improvements — 22,324 2,065,597 2,087,921 9,036,679 Undesignated — — — — (17,885) TOTAL FUND BALANCES — 22,324 2,922,792 2,945,116 9,018,794 TOTAL LIABILITIES AND FUND BALANCES S 3,047 $ 22,324 $ 2,965,510 S 2.990,881 S 9,238.816 —65— CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECT FUNDS For the year ended June 30, 1996 With comparative totals for the year ended June 30, 1995 Community EXCESS OF REVENUES OVER(UNDER) (480.218) (2,419,625) (2,421,938) (5,321.781) (596,528) OTHER FINANCING Facilities 1991 Totals SOURCES (USES): Redevelopment District Revenue June 30, .lune 30,. — — Agency No. 92-1 Bonds 1996 1995 REVENUES: (140,728) TOTAL OTHER FINANCING Use of money and property S — $ 81,001 $ 198,244 S 279,245 S 417,759 Revenue from other agencies — — 1,656,042 1,656,042 602,209 Other revenue — — — — 95 TOTALREVENUES — 81,001 1,854,286 1,935,287 1,020,063 OTHER FINANCING USES 17,885 (2,419,625) (3,671,938) EXPENDITURES: 162,143 FUND BALANCES (DEFICITS)— Current operating: BEGINNINGOFYEAR (17,885) 2,441,949 6,594,730 9,018,794 8,856,651 General government 480,218 — — 480,218 762,299 Capital outlay — 2,500,626 4,276,224 6,776,850 854,292 TOTAL EXPENDITURES 480,218 2,500,626 4,276,224 7,257,068 1,616,591 EXCESS OF REVENUES OVER(UNDER) (480.218) (2,419,625) (2,421,938) (5,321.781) (596,528) OTHER FINANCING SOURCES (USES): Advances from other funds 498,103 — — 498,103 899,399 Operating transfers out — — (1,250,000) (1,250,000) (140,728) TOTAL OTHER FINANCING SOURCES (USES) 498,103 — (1,250,000) (751,897) 758,671 EXCESS OF REVENUES AND OTHER FINANCING SOURCESOVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 17,885 (2,419,625) (3,671,938) (6,073,678) 162,143 FUND BALANCES (DEFICITS)— BEGINNINGOFYEAR (17,885) 2,441,949 6,594,730 9,018,794 8,856,651 FUND BALANCES— END OF YEAR S — S 22,324 $ 2.922.792 L 2,945,116 S 9,018,794 'S,Lfl COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL ALL BUDGETED CAPITAL PROJECT FUNDS For the year ended June 30, 1996 REVENUES: Use of money and property Revenue from other agencies TOTALREVENUES EXPENDITURES: Current operating: General government Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDI 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 OTHER FINANCING USES FUND BALANCES (DEFICITS)—BEGINNING OF YEAR FUND BALANCES (DEFICITS)—END OF YEAR —67— Redevelopment Agency Variance Favorable Budget Actual (Unfavorable) $ — a — $ — 503,495 480,218 23,277 503,495 480,218 23,277 (503,495) (480,218) 23,277 498,103 498,103 _ 498,103 498,103 (503,495) 17,885 521,380 (17,885) (17,885) — S (521,380) S — S 521,380 1991 Revenue Boad Totals Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S — S 198,244 S 198,244 $ — S 198,244 S 198,244 1,300,000 1,656,042 356,042 1,300,000 1,656,042 356,042 1,300,000 1,854,286 554,286 1,300,000 1,854,286 554,286 — — — 503,495 480,218 23,277 6,288,878 4,276,224 2,012,654 6,288,878 4,276,224 2,012,654 6,288,878 4,276,224 2,012,654 6,792,373 4,756,442 . 2,035,931 (4,988,878) (2,421,938) 2,566,940 (5,492,373) (2,902,156) 2,590,217 (1,250,000) (1.250,000) (1,250,000) (1,250,000) 498,103 498,103 — (1,250,000) (1,250,000) (751,897) (751,897) (4,988,878) (3,671,938) 1,316,940 (5,492,373) (3,654,053) 1,838,320 6,594,730 6,594,730 — 6,576,845 6,576,845 — $ 1,605,852 $ 2,922,792 $ 1,316,940 S 1,084,472 S 2,922,792 $ 1,838,320 • s • • CITY OF SANTA CLARITA COMPARATIVE BALANCE SHEET TRANSIT ENTERPRISE FUND June 30, 1996 and 1995 ASSETS CURRENT AS SETS: Cash Accounts receivable Due from other governments Prepaid items TOTAL CURRENTS ASSETS RESTRICTED ASSETS: Deposit Deferred bond issue costs TOTAL RESTRICTED AS SETS PROPERTY, PLANT AND EQUIPMENT (NET) TOTAL AS SETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities Deferred revenue Due to other funds Current portion of long—term debt TOTAL CURRENT LIABILITIES LONGTERM DEBT, NET OF CURRENT PORTION TOTAL LIABILITIES FUND EQUITY: Contributed capital Retained earnings:' Reserved for debt service Unreserved Total retained earnings (deficit) TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY June 30, June 30, 1996 1995 $ 57,673 $ 16,136 6,739 1,052,969 350,645 14,198 5,582 1,140,976 362,966 489,500 489,500 76,526 88,921 566,026 578,421 9,466,001 9,585,545 S 11,173,003 S 10,526,932 S 846,293 $ 863,815 600 — 1,316,760 1,342,677 1,763,114 1,677,771 3,926,767 3,884,263 4,757,256 6,517,472 8,684,023 10,401,735 1,622,071 452,704 489,500 489,500 377,409 (817,007) 866,909 (327,507) 2,488,980 125,197 S 11,173,003 S 10,526,932 CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS TRANSIT ENTERPRISE FUND For the years ended June 30, 1996 and 1995 June 30, June 30, 1996 1995 OPERATING REVENUES: Transportation revenue $ 1.832,299 $ 1,648,075 OPERATING EXPENSES: 5,632,076 6,685,503 Administrative 311,484 294,903 Transportation services 5,556,867 6,147,943 Depreciation and amortization 693,449 657,432 TOTAL OPERATING EXPENSES 6,561,800 7,100,278 (327,507) OPERATING LOSS (4,729,501) (5,452,203) — NONOPERATING REVENUES (EXPENSES): Interest expense (451,812) (459,683) Intergovernmental grants 524,662 27,337 Other revenue 2,169 33,908 TOTAL NONOPERATING REVENUES (EXPENSES) 75,019 (398,438) NET LOSS BEFORE OPERATINGTRANSFERS (4,654,482) (5,850,641) OPERATING TRANSFERS: Operating transfers in 5,632,076 6,703,203 Operating transfers out — (17,700) TOTAL OPERATINGTRANSFERS 5,632,076 6,685,503 NET INCOME 977,594 834,862 ADD DEPRECIATION ON CONTRIBUTED ASSETS 123,193 — NET INCREASE IN RETAINED EARNINGS 1,100,787 834,862 RETAINED EARNINGS (DEFICIT) AT BEGINNING OF YEAR (327,507) (1,162,369) PRIOR PERIOD ADJUSTMENT 93,629 — RETAINED EARNINGS (DEFICIT) AT BEGINNING OF YEAR, AS RESTATED (233,878) (1,162.369) RETAINED EARNINGS (DEFICIT) AT END OF YEAR S 866,909 $ (327,507) —70— CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF CASH FLOWS TRANSIT ENTERPRISE FUND For the years ended June 30, 1996 and 1995 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovernmental grants June 30, June 30, Cash received from other funds 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: 5,632,076 6,703,203 Operating loss S (4,729,501) S (5,452,203) Adjustments to reconcile operating loss to net (1,342,677) (2,445,866) cash used by operating activities: NET CASH PROVIDED BY Depreciation and amortization 693,449 657,432 Other revenue 2,169 33,908 Changes in operating assets and liabilities: FINANCING ACTIVITIES: (Increase) decrease in accounts receivable (9,397) 3,094 (Increase) decrease in due from other governments (702,324) 1,057,215 (Increase) decrease in deposit — (489,500) (Increase) decrease in prepaid items (8,616) (5,582) Increase (decrease)in accounts payable (17,522) — Increase (decrease)in deferred revenue 600 (211,031) Total adjustments (41,641) 1,045,536 RELATED FINANCING ACTIVITIES NET CASH USED BY OPERATING ACTIVITIES (4,771,142) (4,406,667) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovernmental grants 524,662 27,337 Cash received from other funds 1,316,760 1,342,677 Operating transfers in from other funds 5,632,076 6,703,203 Operating transfers out to other funds — (17,700) Cash paid to other funds (1,342,677) (2,445,866) NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 6,130,821 5,609,651 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (464,172) (1,971,187) Contributed capital 1,292,560 452,704 Proceeds from long—term debt — 1.307,000 Principal payments on long—term debt (1,678,582) (1,021,318) Interest expense on long—term debt (451,812) (459,683) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (1,302,006) (1,692,484) NET (INCREASE) DECREASE IN CASH AND CASH EQUIVALENTS 57,673 (489,500) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR — 489,500 CASH AND CASH EQUIVALENTS AT END OF YEAR S 57,673 S - -71— hYM t M_ _ � 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. Computer Replacement - To account for the financing of the replacement of the City's computer equipment. Vehicle Replacement - To account for the Financing of the replacement of the City's automotive equipment. CITY OF SANTA CLARTTA COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS June 30, 1996 With comparative totals for June 30, 1995 Self Computer ASSETS Insurance Replacement CURRENT AS SETS: Cash and investments $ — $ 217,457 Interest receivable — 1,724 Prepaid items 3,206 — TOTAL CURRENT ASSETS 3,206 219,181 PROPERTY, PLANT AND EQUIPMENT Equipment — 195,848 Less accumulated depreciation — — NET PROPERTY, PLANT AND EQUIPMENT — 195,848 TOTALASSETS $ 3.206 $ 415,029 LIABILITIES AND FUND EQUITY Accounts payable and accrued liabilities S 530,347 S — Lease payable, current portion — 166,634 Due to other funds 17,349 — TOTAL CURRENT LIABILITIES 547,696 166,634 LONG-TERM LIABILITIES: Lease payable, net of current portion — 29.214 TOTAL LIABILITIES 547,696 195,848 FUND EQUITY (DEFICIT): Retained earnings: Unreserved (544,490) 219,181 TOTAL LIABILITIES AND FUND EQUITY S 3,206 $ 415,029 —72— • • • • • • • • • • • Totals . Vehicle June 30, June 30, • Replacement 1996 1995 • S 633,418 S 850.875 S 669,621 4,974 6,698 • 3,206 5,893 • • 638,392 860,779 675,514 • • — 195,848 — • — 195,848 — S 638,392 S 1,056,627 S 675,514 • • • • • S — S 530,347 S 1,022,074 • — 166,634 - - 17,349 304,099 • — 714,330 1,326,173 • • • — 29,214 — — 743,544 1,326,173 • • 638,392 313,083 (650,659) • • S 638,392 S 1.056.627 S 675,514 • • • • • —73— • CITY OF SANTA CLARITA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL INTERNAL SERVICE FUNDS For the year ended Tune 30, 1996 With comparative totals for the year ended June 30, 1995 OPERATING REVENUES: Charges for services Insurance reimbursement TOTAL OPERATING REVENUE OPERATING EXPENSES: Services and supplies OPERATING INCOME (LOSS) NONOPERATING REVENUES: Interest income NET INCOME (LOSS) BEFORE OPERATING TRANSFERS OPERATING TRANSFERS: Operating transfers in Operating transfers out NET INCOME (LOSS) RETAINED EARNINGS (DEFICITS) AT BEGINNING OF YEAR RETAINED EARNINGS (DEFICITS) AT END OF YEAR —74— Self Computer Insurance Replacement $ 735,989 S 215,000 26,233 — 762,222 215,000 230,539 — 531,683 215,000 — 4,181 531,683 219,181 250,000 250,000 781,683 219,181 (1,326,173) — S (544,440) $ 219,181 Totals Vehicle June 30, June 30, Replacement 1996 1995 S 88,085 S 1,039,074 S 543,514 — 26,233 — 88,085 1,065,307 543,514 230,539 1,026,153 88,085 834,768 (482,639) 34,793 38,974 20,590 122,878 873,742 (462,049) 250,000 — (160,000) (160,000) 93,700 (160,000) 90,000 93,700 (37,122) 963,742 (368,349) 675,514 (650,659) (282,310) S 638,392 S 313,083 S (650,659) —75— CITY OF SANTA CLARIPA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS For the year ended June 30, 1996 With comparative totals for the year ended June 30, 1995 CASH FLOWS FROM OPERATING ACTIVITIES: 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 prepaid expenses Increase (decrease)in accounts payable Total adjustments Self Computer Insurance Replacement $ 531,683 $ 215,000 (1,724) (3,206) (491,727) (494,933) (1,724) NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES 36,750 213,276 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash received from other funds Operating transfers in from other funds Operating transfers out to other funds Cash paid to other funds NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: Purchase of equipment Proceeds from debt NET CASH PROVIDED (USED) BY CAPITAL 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 —76— 17,349 250,000 — (304,099) — (36,750) — (195,848) 195,848 4,181 217,457 S — S 217,457 Totals Vehicle June 30, June 30, Replacement 1996 1995 S 88,085 S 834,768 $ (482,639) 919 (805) (1,343) — (3,206) — (491,727) 357,381 919 (495,738) 356,038 89.004 339,030 (126,601) 17,349 304,099 250,000 — (160,000) (160,000) 93,700 (304,099) (172,241) (160.000) (196.750) 225,558 (195,848) — 195,848 — 34,793 38,974 20,590 (36,203) 181,254 119,547 669,621 669.621 550,074 S 633,418 S 850,875 S 669,621 —77— 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 30,1996 With comparative totals for June 30, 1995 LIABILITIES Accounts payable and accrued liabilities $ 44,706 S — S — $ 44,706 $ 16,956 Deposits 334,606 — 1,965,957 2,300,563 2,635,964 Deferred compensation payable — 3,176,177 — 3,176,177 2,345,377 TOTAL LIABILITIES S 379,312 S 3,176,177 S 1,965,957 S 5,521,446 S 4,998,297 —78— Expendable Trust Agency Totals Community Facilities General Deferred District June 30, June 30, Trust Compensation No. 92-1 1996 1995 ASSETS Cash and investments $ 286,763 S — S — $ 286,763 S 353,650 Cash and investments with fiscal agent — 3,176,177 1,965,957 5,142,134 4,433,421 Accounts receivable 92,399 — — 92,399 211,166 Interest receivable 150 — — 150 60 TOTALASSETS S 379,312 S 3,176,177 $ 1,965,957 $ 5,521,446 $ 4,998,297 LIABILITIES Accounts payable and accrued liabilities $ 44,706 S — S — $ 44,706 $ 16,956 Deposits 334,606 — 1,965,957 2,300,563 2,635,964 Deferred compensation payable — 3,176,177 — 3,176,177 2,345,377 TOTAL LIABILITIES S 379,312 S 3,176,177 S 1,965,957 S 5,521,446 S 4,998,297 —78— CITY OF SANTA CLARITA COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EXPENDABLE TRUST FUND For the years ended June 30, 1996 and June 30, 1995 REVENUES: Other revenue EXPENDITURES: Current operating: Public works EXCESS OF REVENUES OVER EXPENDITURES FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR —79— June 30, June 30, 1996 1995 $ 620,404 $ 510,191 620,404 510,191 CITY OF SANTA CLARITA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS For the year ended June 30, 1996 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 TOTALS ASSETS: Cash and investments with fiscal agent LIABILITIES: Deferred compensation payable Deposits Balance Balance at at July 1, June 30, 1995 Additions Deletions 1996 $ 2,345,377 $ 960,949 S 130,149 $ 3,176,177 S 2,345,377 S 960,949 S 130,149 S 3,176,177 S 2,088,044 S 1,635,448 S 1,757,535 S 1,965,957 $ 2,088,044 $ 1,635,448 S 1,757,535 $ 1,965,957 S 4,433,421 S 2,596,397 $ 1,887,684 $ 5,142.134 $ 2,345,377 S 960,949 S 130,149 $ 3,176,177 2,088,044 1,635, 448 1,757,535 1,9 65,957 TOTAL LIABILITIES L4,433,421 $ 2,596,397 S 1,887,684 S5,142.134 —80— s • • • • • • • 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 Long -Term Debt - To account for the City's long-term debt not reported in proprietary fund. operations. CITY OF SANTA CLARTTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE June 30, 1996 and 1995 GENERAL FDCED 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 FIXED ASSETS —81— June 30, June 30, 1996 1995 S 29,300,124 S 25,897,515 13,640,104 13,487,501 6,247,091 5,650,643 S 49,187,319 S 45,035.659 S 12,448,203 S 12,448,203 36,739,116 32,587,456 S 49,187,319 S 45,035,659 !�1*7 Y�r�1I:5IM1►5;i Rn SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30,1996 FUNCTION AND ACTIVITY: General government Public safety Public works Parks and recreation Community development TOTAL GENERAL FIXED ASSETS Land and Improvements Buildings Equipment Totals $ 13,570,291 $ 10,245,069 $ 3,614,484 $ 27,429,844 — — 34,799 34,799 — 179,278 1,343,387 1,522,665 15,729,833 2,156,233 779,655 18,665,721 — 1,059,524 474,766 1,534,290 $ 29,300,124 $ 13,640,104 S 6,247,091 $ 49,187,319 —82— CITY OF SANTA CLARITA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the year ended June 30, 1996 General General Fixed Assets Fixed Assets July 1, 1995 Additions Deletions June 30, 1996 FUNCTION AND ACTIVITY: General government $ 25,779,397 $ 1,650,447 $ — $ 27,429,844 Public safety 11,330 23,469 — 34,799 Public works 1,447,343 75,322 — 1,522,665 Parks and recreation 16,424,992 2,240,729 — 18,665,721 Community development 1,372,597 161,693 — 1,534,290 TOTAL GENERAL FIXED ASSETS $ 45,035,659 $ 4,151,660 $ — S 49,187,319 —83— CITY OF SANTA CLARITA COMPARATIVE SCHEDULE OF GENERAL LONG—TERM DEBT June 30, 1996 and 1995 June 30, 1996 AMOUNT AVAILABLE AND TO BE PROVIDED FOR PAYMENT OF GENERAL LONG—TERM DEBT: June 30, 1995 Amount available for retirement of long—term debt $ 2,279,094 S 2,273,257 Amount to be provided for payment of long—term debt 22,808,890 23,220,801 TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED FOR PAYMENT OF GENERAL LONG—TERM DEBT S 25,087,984 $ 25,494,058 GENERAL LONG—TERM DEBT PAYABLE: 1991 Revenue Bonds—Public Financing Authority S 19,715,000 $ 20,580,000 Notes payable 3,278,698 3,435,724 Advance to Santa Clarita Redevelopment Agency 1,612,248 1,063,129 Compensated absences 482,038 415,205 TOTAL GENERAL LONG—TERM DEBT PAYABLE S 25,087,984 $ 25,494,058 —84— r 1 • i� �vr �..,�.'��,t�,�3��P�y,�i '' } � 4 " i�; , v ♦ �m.�+x a 1 J J �' O .. 11 . w/ •' � � *n ,h �>r.� +{ • .cSY C"^` +_ G�qq� Y y�hv�}�, r,w $� Y 1 �^'r' P��J yg �fi, � '� �Y � • ''y jj(j,�A//,y �' r�r 1• ��rx�i. 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MFk f`f�,♦ tlY )ice J"^%l�_ �.T����.. �i.� I u• '3r .., i •� _ �?,„j•+�` -�,,�� f4.�ee. r ' Ti�i� �y'.,C'rI' i1,1`,iy,ei/T� - •�<��< .•"�E r� "'v _ - '•' n„��s.,wJ°` � i rr. #a ♦ :� �+.t 1. � f i -d �� ] `j1. ?.�^ 4� �a�-� F • .�, t.. ° ,, ::: > w arr r tC rl {+q't'r/ .F i�r e� _ G � fr "�L�.. •,n�t'♦.9 �”" tl. �,� ` r e � ,..t . - x .tea - \ r r 1 '. #. >w.w� }c - i• d �..:-.A- � a' -. ! � i f � '� 'meg r �. �m{ N _*a.. a � lr, 3 t[`.d .Y E'!/..p� F ♦a• Frrki i .. s � r � V t � sca'° v f+, -e; �L >,+ i�hd.w •.t hL A^ • x— L IT �, Y ..."ter .tl w', a e 4 T as fi 5 j1 r H J '1.'r ♦} e 1 e" • :; 'a e • a. Y :` 4 -Tii� Y- e,.s*� tl i:vet'v i - e - �: ',.� v �r;�' .e r: ��,• yr i(t <r...��.� ow.r c y '<� °t � `'`i � r N'♦ � �-'.�. `r • 1ltt' Sal 1�3'` '! 1 ♦ .� f • t � �5 '�� `” LW A �:i r yr y. T -1 ;�` "` `. _�Tj .l i +<.,`♦ j.°„ • ♦ Y P ` ' � it � +4 's{r'� • Y IL • _ _ r , n 'i �. y .� tl F +a .S rte°' d j be EA jul • ,W ay♦ yam,"' F .. - T tl i`tY J � • ,' ' fiI,: _ 5 r I _ 4 tial L � .-..�, s""' e. ` ^w •tb{ i • * r � 1 Y i tlx i T� � Y T �.m. ^�- W W,.J"' k: -i' � •Yf '9 � � b°x� �^ w, �`� n t ' M X t° STATISTICAL SECTION CITY OF SANTA CLARITA General Governmental Revenues by Source (1) All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1996 WA prior to incorporation of 12/15/87 (1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds Source: City Finance Department �� 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 $ 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- 41,210,498 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 54,378,268 199495 49,191,936 1,272,109 4,795,744 2,339,564 418,353 4,444,838 -0- 62,462,644 1995-96 44,403,994 1,749,220 3,746,441 2,396,859 445,410 5,332,345 -0- 58,074,269 (1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds Source: City Finance Department �� WA prior to incorporation of 12/15/87 Fiscal General Year Government 1987-88 $ 535,975 1988-89 1,982,151 1989-90 3,721,584 1990-91 4,337,791 1991.92 3,566,198 1992-93 3,491,725 1993-94 4,119,942 1994-95 5,185,377 CRY OF SANTA CLARITA General Governmental Expenditure by Function (1) All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1995 Public Public Parks & Community Mainte- Capital Debt Safety Works Recreation Develop. nance Outlay Service TOTAL $2,329,899 $1,235,438 $ 237,932 $ 150,032 $ 60,298 $ 80,357 $ 62,704 $ 4,692,635 7,281,724 3,079,575 1,084,379 680,954 -0- 1,897,366 852,561 16,858,710 7,047,498 7,174,219 2,448,765 1,421,896 -0- 11,589,753 1,149,551 34,553,266 7,498,105 6,427,528 3,818,211 1,871,961 -0- 9,591,664 403,909 33,949,169 8,419,797 5,293,024 5,609,782 5,021,236 -0- 24,424,817 3,548,433 55,883,287 8,389,392 5,591,281 5,869,522 4,587,470 -0- 25,636,052 4,243,319 57,808,761 9,256,950 4,686,014 5,676,932 3,895,879 -0- 26,201,540 2,471,080 56,308,337 10,116,169 5,784,519 6,414,630 4,747,081 -0- 25,487,576 2,685,046 60,420,398 (1) Includes General, Special Revenue, Capital Projects and Expendable Trust Funds Source: City Finance Department M. U. CITY OF SANTA CLARITA Assessed and Estimated Actual Values of All Taxable City Property June 30,1996 All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1996 (Numbers expressed in thousands) The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30,198& Source: City Finance Department MN Common Public Full Fiscal Property Utilities Unsecured Market Percent Year Valuation Valuation Valuation Valuation Increase • 1987-88 $ WA $ "WA $ WA $ WA WA 1988-89 4,061,732 7,207 WA 4,068,939 WA 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'/0 1992-93 7,170,561 366 342,726 7,513,653 501. 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% 1995-96 7,436,483 1,878 375,315 7,813,676 2% The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30,198& Source: City Finance Department MN CITY OF SANTA CLARITA Schedule of Direct and Overlapping Bonded Debt June 30,1996 1995-96 Assessed Valuation: $7.813.675.967 DIRECT AND OVERLAPPING BONDED DEBT: % Applicable Los Angeles County, 1.739 Los Angeles County Building Authorities 1.739 Los Angeles County Pension Obligations 1.739 Los Angeles County Superintendent of Schools Certificates of Participation 1.739 Los Angeles County Flood Control District 1.795 Los Angeles County Flood Control District Certificates of Participation 1.795 Los Angeles County Sanitation District #23 and Authorities 0.117 Los Angeles County Sanitation District #26 and Authorities 84.529 Los Angeles County Sanitation District #32 and Authorities 70.397 Castaic Lake Water Agency 72.646 Newhall County. Water District, I.D. #2 (Sewer and Water Issues) 80.924.83.270 Santa Clarita Community College District 72.166 William S. Hart Union High School District and Certificates of Participation 72.149 William S. Hart Union High School District Community Facilities District #87.1 100. Castaic Union School District and Certificates of Participation 31.661 Newhall School District and Certificates of Participation 85.755 Saugus Union School District Certificates of Participation 70.991 Sulphur Springs Union School District and Certificates of Participation 76.263 Los Angeles Community College District and Unified School District Certificates of Participation 0.001 City of Santa Clarita Certificates of Participation 100.000 City of Santa Clarita Community Facilities District #92-1 100.000 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties In Marina del Rey) TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT • Ratios to Assessed Valuation: Direct Debt ($19,715,000) 0.25% • Total Gross Debt 2.60% Total Net Debt .2.57% STATE SCHOOL BUILDING AID REPAYABLE AS OF 06/30/96: $164 Source:. California Municipal Statistics, Inc., September 17, 1996 ff.". Debt 06/30/96 $ 1,158,087 32,244,110 43,626,330 176,968 1,112,451 3,879,085 7,419 13,861,213 8,789,313 4,358,760 1,257,843 1,064,449 1,111,095 4,672,309 6,666,042 1,960,972 10,030,649 25,687,484 2,609 19,715,000 19:335,000 $202,777,188 2.231,050 $200,546,138 CITY OF SANTA CLARITA Schedule of Legal Debt Margin June 30,1996 Net Assessed Value of All Taxable Property $7,813,675,967 Legal Debt Limit -15°/C of Total Assessed Valuation $1.172.051.395 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 f M C7 CITY OF SANTA CLARITA Property Tax Levies and Tax Collections All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1996 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 N/A WA 198889 $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 199495 3,854,637 3,676,538 199596 3,949,833 3,763,989 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, 1996 AMOUNT OF CARRIER POLICY COVERAGE COVERAGE TERM Insurance Company of the West CSR117475006 Public Entity $1,000,000 03101/96-03/01197 General Liability & Auto Liability Insurance Company of the West ESR117475106 Excess Public 9,000,000 03/01/96-03/01/97 Entity General Liability & Auto Liability Planet Insurance Company KZ1813718 Extended Reporting 900,000 12!15/90 -unlimited Endorsement Planet Insurance Company KRI735681 Extended Reporting 4,000,000 12/15/90 -unlimited Endorsement Hartford Steam Boiler & LA993059007 Property Damage unlimited 03101/95-03/01/96 Inspection Insurance Company Business Interruption & Extra Expense 12 months Scottsdale Insurance Company CLS310237 "Special Events" Liability 2,ODD,000 10116/95-10/16/96 General Aggregate 2,000,000 10116/95-10116196 Products/Completed Operations 1,000,000 70116/95-10/16/96 Each Occurrence 11000,000 10116195.10/16196 Personal/Advertising Injury 11000,000 10116/95-10/16/96 Fire Legal Liability 50,000 10/16195-10/16/96 St. Paul Fire & Marine 400HV9733 Public Official 100,000 08/05195-0a/05/96 Bond for City Manager St. Paul Fire & Marine 400JH1797 Public Official 100,000 =18/96.02/18197 Bond for Assistant City Manager SL Paul Fire & Marine 400HV9732 Public Official 50,000 08105/95-08/05/96 Bond for City Clerk St. Paul Fire & Marine 40DJM3404 Public Official 100,000 08/06/95-08106/96 Bond for Program Coordinator-CDBG -91- CITY OF SANTA CLARITA Insurance In Force (continued) June 30,1996 Great American Insurance Company FS7316338 Public Official 300,000 05/11/96-05/11/97 Bondfor Finance Director State Compensation Fund 1060671 Worker's Compensation 3,000,000 05/01/95-05/01/96 Reliance Insurance Company QB8570922 Business Income 4,500,000 03/01/96.03/01/97 Reliance Insurance Company OB8572264 Building 15,524,500 03/01/96-03/01/97 Personal Property 1,374,500 Employee Dishonesty 300,000 Valuable Papers 500,000 Mini Computer 802,981 Fine Arts 5,000 Contractors Equipment 286,850 Miscellaneous Property 641,000 Automobile Liability 250,000 • Uninsured/Underinsured Motorist 250,000 • Medical Payments 5,000 • CompJCollision Self -Insured Houston Casualty Insurance HP12710 Difference in 4,000,000 11/26/94-11/26/95 Company Conditions American National Fire IMP706237704 Excess Flood 10,000,000 11/26194-11/26/95 RLI Insurance Company IMF022442 Excess Earthquake 5,000,000 12/15195-12115/96 ' Coverage Excess 5,000,000 ' Pacific Insurance Company, LTD. ZG0002367 Earthquake 2,500,000 12115/95-12/15/96 Coverage Part of 5,000,000 Westchester Fire Insurance Co. IML456629 Excess Earthquake 5,000,000 12/15/95-12115196 Excess 57,500,000 Progressive Casulty CA074684470 Commercial Auto 250,000 05/06/96-05106/97 Each Accident 500,000 Property Damage 100,000 On selected vehicles only Source: City Risk Management -92- CITY OF SANTA CLARITA Demographic Statistics All Fiscal Periods From December 15,1987 (Date of Incorporation) to June 30,1996 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 1995-96 42.88 46,556 "'129,861 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: Los Angeles County Population and Housing Estimate Report dated January 1, 1996. Source: City Finance Department -93- CITY OF SANTA CtARITA Principal Sales Taxpayers and Major Employers June 30,1996 Principal Taxpayers Frontier Chrysler/Toyota Home Depot Hughes Markets Lucky Food Centers Magic Ford Price Club Robinsons -May Scott Irvin Chevrolet Geo Target Stores Terry York's Dodgellsuzu Employment Products/Services 130 Car Dealership 169 Building Materials Store 305 Grocery Store 277 Grocery Store 279 Car Dealership 140 Wholesale Store 200 Department Store 67 Car Dealership 210 Department Store 170 Car Dealership Source: City Finance Department, State Board of Equalization -94- CITY OF SANTA CLARITA Property Value, Construction, and Bank Deposits All Fiscal Periods from December 15,1987 (Date of Incorporation) to June 30,1996 (Dollar Amounts Expressed in Thousands) 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 agency at this time. (1) Represents the number of new commercial buildings. Source: City of Santa Clarita (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. -95- Commercial Residential Total Fiscal Number of Construction Number of Construction Bank Assessed Year Units 1 Value Units 2 Value Deposits (3) Valuations (4) 1987-88 WA' $ � WA' WA' $ NW $ 705,894 $ N/A' 1988-89 43' 18,090' 276' 41,698' 809,891 4,068,939 1989-90 64 21,628 302 86,203 969,355 5,004,029 1990-91 31 6,355 86 25,686 1,009,961 5,949,315 1991-92 41 48,407 173 32,748 1,031,996 7,122,608 1992-93 18 5,529 202 25,630 921,728 7,513,654 1993-94 14 3,336 193 27,250 1,097,977 7,711,393 1994-95 31 11,173 48 10,415 1,155,427 8,007,168 1995-96 36 16,353 63 11,456 WA 7,813,676 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 agency at this time. (1) Represents the number of new commercial buildings. Source: City of Santa Clarita (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. -95- 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 30,1996 • The Los Angeles County Tax Collector's Office did not have rates available for the Oscal year ended June 30,1988. Source: Los Angeles County Tax Auditor/Controller T- Los Castaic County County Angeles Lake Water School Sanitation Flood General County Agency Districts Districts Control Total WA WA WA WA WA WA WA 1.000000 0.002781 0.101825 0.082829 0.002750 0.010042 1200227 1.000000 0.002242 0.081833 0.062990 0.002230 0.006679 1.155974 1.000000 0.002104 0.067713 0.049088 0.001879 0.005626 1.126410 1.000000 0.001880 0.059573 0.037935 0.001457 0.005204 1.106049 1.000000 0.001713 0.068031 0.022308 0.001045 0.004098 1.097195 1.000000 0.001993 0.067630 0.028250 0.001533 0.005876 1.105282 1.000000 0.001933 0.067630 0.028250 0.001528 0.005885 1.105286 1.000000 0.001814 0.064348 0.020451 0.001354 0.000963 1.088930 • The Los Angeles County Tax Collector's Office did not have rates available for the Oscal year ended June 30,1988. Source: Los Angeles County Tax Auditor/Controller T- CITY OF SANTA CLARITA Miscellaneous Statistics June 30,1996 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 129,861" 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: Los Angeles County Population and Housing Estimate Report dated January 1, 1996. Source: City Finance Department _97_ [1 r�/ ✓t � t L r_ •ri • .r 41 j � r ss{ .4 C M Ir Ad dl d k f �\64 ° M1 ya meted p x .y a ✓ I 1 ^'�, �.ak I •1 F`�'� Li wqI, k'"v ➢ i o-"'yr� �"... ,/ ; ."r+r IT, ➢ " A� r Cv' da' ➢ 4. . ,Er F 6k fri:d ` f - �! iiµ°� ✓ Y k,t 111 "a r .s"" 4A°+, r �. � � -t t � � c. 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