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HomeMy WebLinkAbout1998-01-13 - AGENDA REPORTS - FIN ANNUAL RPT MGMT LETTER (2)AGENDA REPORT CONSENT CALENDAR DATE: January 13, 1998 City Mana Item to be Steve Stark SUBJECT: 6-30-97 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND MANAGEMENT LETTER DEPARTMENT: Administrative Services Receive Comprehensive Annual Financial Report and Management Letter for FYE 6-30-97. The City's independent audit firm, Moreland & Associates, has completed the City's annual audit for fiscal year ending June 30, 1997. Moreland & Associates 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, Moreland & Associates 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 6-30-97. An excerpt of this letter is shown as Attachment 1. As part of the audit engagement, Moreland & Associates 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 6-30-97, there were no significant material weakness comments by the auditors. Moreland and Associates has incorporated the City's response into their recommendations. ALTERNATIVE ACTIONS No feasible alternative action has been identified by staff, k�01 19MOO None. 1) Audited Opinion Letter dated September 26, 1997 2) Management Letter for FYE 6-30-97 Comprehensive Annual Financial Report Year Ended June 30, 1997 is available in the City Clerk's reading file. s:\tin\aplil\ymnd97\agenda.wpd 1201 DOVE STREET, SUITE 680 �1� r �/ ��� f NEWPORT BEACH, CALIFORNIA 92660 M oreland (7 C16LddaGLCGL6GV (714) 221-0025 CERTIFIED PUBUCACCOUNTANTS 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760)752-3390 September 26, 1997 The Honorable City Council of the City of Santa Clarita, California Independent Auditors, Report We have audited the accompanying general purpose fmancial.statements of the City of Santa Clarita, California as of and for the year ended June 30, 1997, as listed in the table of contents. These general Purpose financial . statements are the responsibility of the City of Santa Clarita 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 and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonableassurance 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, 1997, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated September 26, 1997 on our consideration of the City of Santa Clarita internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants, Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Clarita taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplementary information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. 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 was not audited by us and, accordingly, we do not express an opinion thereon. f 1 MAQ-Il"= 1 1201 DOVE STREET, SUITE 660 r� �/j - - .� f_' NEWPORT BEACH, CALIFORNIA 92660 oreland C7 ,Wjj"ia4 � (714) 221-0025 MCERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760)752-3390 September 26, 1997 Mr. Steve Stark Director of Administrative Services City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355-2196 Dear Mr. Stark: We have audited the general purpose financial statements of the City of Santa Clarita, California as of and for the year ended June 30, 1997, and have issued our report thereon dated September 26, 1997. In planning and performing our audit of the general purpose financial statements of the City of Santa Clarita for the year ended June 30, 1997, we considered its internal control over financial reporting 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 over financial reporting. We noted no matters involving the internal control over financial reporting and its operation that we considered to be material weaknesses under standards established by the American Institute of Certified Public Accountants which was reported to the City.Council in a separate letter dated September 26, 1997. However we noted items of less significance which are discussed below. BANK RECONCILIATIONS Auditors' Comments and Recommendations: During our review of the monthly bank reconciliations, we noted the following: a) Six of twelve reconciliations tested did not indicate who prepared the reconciliation or the date of preparation. b) Two of twelve reconciliations tested were not prepared in a timely manner (within 30 days of month end). c) The general account bank reconciliation indicated several reconciling items to the general ledger during the period from November 1996 to May 1997, resulting in a net difference of approximately $20,000. This was due to system difficulties in posting transactions to the new Pentamation system. These differences were not fully resolved until June 1997. AITACIDIMA, (page 1 of 2) Mr. Steve Stark Director of Administrative Services City of Santa Clarita September 26, 1997 Page 2 We recommend the City identify the preparer of the reconciliation and indicate the date of preparation. We also recommend the City prepare the reconciliations within thirty days of the month end. Additionally, we recommend reconciling items be identified and resolved prior to the monthly Treasurer's Report being submitted to Council, in order to ensure the accuracy of the information provided in the Treasurer's Report Management's Response: a) Although the bank reconciliations did not indicate who prepared them, they were prepared by the same employee all year. Procedures have since been implemented to ensure that both the preparer's and the approver's signature and date appear on all reconciliations. b) Due to difficulties related to the conversion of the City's financial system from NISSI to Pentamation, as well as the transfer of the City's.bank accounts to a new bank, reconciliations required additional time to prepare. These issues have since been resolved and.the reconciliations are being prepared and approved within 30 days of month end. C) These system difficulties have been resolved. Steps are now taken to ensure that any differences in any given month are identified and explained and are cleared by the following month. This report is intended for the use of management, although we recognize that it may become a public document when issued to the City. We would like to express our appreciation for the courtesy and assistance extended to us during our audit by all of your staff. We would be pleased to discuss with you at your convenience the matters contained in this letter or any other matters which you would like to discuss. Very truly yours, MORELAND & ASSOCIATES Michael C. Moreland, Partner MCM:shn =IAMM i 2 (page 2 of 2) • • Comprehensive Annual Financial Report -Year Ended June 30,1997 M, M<4 w:� • • • • mfg • / rw/Uj • • Comprehensive Annual Financial Report -Year Ended June 30,1997 M, M<4 w:� 1\ Q. .omprehensive Annual Financial Report n uw ®^....r— I i.`� I YY■ e-� • >1� � �yW� � ����SQ5{{ '�.'.�. � "'� �E ��>�� iii ✓' �� 2�� e Shin � � � . >� � Via' _ �d�,./r//.�:�,,� a;,-� �•� .�' `'�. �_ �. '"" `> \ • Ary` JYQ� '��,x_x A L I F O R N I A Ia LcC[MccM `\\ `. � it \\Jf I Y CTI'Y OF SANTA CLARITA Comprehensive Annual Financial Report Year Ended June 30, 1997 TABLE OF CONTENTS INTRODUCTORY SECTION PAGE Table of Contents i Letter of Transmittal v GFOA Certificate of Achievement for Excellence in Financial Reporting xix CSMFO Certificate of Award for Outstanding Financial Reporting xx Officials of the City of Santa Clarita xxi Organization Chart xxii Map of the City xxiii FINANCIAL SECTION: Independent Auditors' Report 1 General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 2-5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Fund 6-7 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 Projects Funds 8-11 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 12 Combined Statement of Cash Flows - All Proprietary Fund Types 13 Notes to Financial Statements 15-40 Supplementary Information: General Fund: Comparative Balance Sheets 42 Statement of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual 43 Special Revenue Funds: Combining Balance Sheet 46-51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 52-57 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — All Special Revenue Funds 58-74 i CITY OF SANTA CLARITA Comprehensive Annual Financial Report Year Ended June 30, 1997 TABLE OF CONTENTS (Continued) PAGE Supplementary Information (Continued): Debt Service Funds: Combining Balance Sheet 77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78-79 Combining Statement ofRevenues, Expenditures and Changes in Fund Balances — Budget and Actual — All Budgeted Debt Service Funds 80-81 Capital Projects Funds: Combining Balance Sheet 84-85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 86-87 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual — All Budgeted Capital Projects Funds 88-89 Transit Enterprise Fund: Comparative Balance Sheet 93 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings 94 Comparative Statement of Cash Flows 95 Internal Service Funds: Combining Balance Sheet 98-99 Combining statement of Revenues, Expenses and Changes in Retained Earnings 100-101 Combining Statement of Cash Flows 102-103 Fiduciary Fund Types — Trust and Agency Funds: Combining Balance Sheet 106-107 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance — Expendable Trust Fund 108 Statement of Changes in Assets and Liabilities — All Agency Funds 109 ii CITY OF SANTA CLARTTA Comprehensive Annual Financial Report Year Ended June 30, 1997 TABLE OF CONTENTS (Continued) PAGE Supplementary Information (Continued): Account Groups: General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets by Source 113 Schedule of General Fixed Assets by Function and Activitiy 114 Schedule of Changes in General Fixed Assets by Function and Activity 115 General Long -Term Debt Account Group: Comparative Schedule of General Long -Term debt 116 STATISTICAL SECTION (Unaudited) General Governmental Revenues by Source 118 General Governmental Expenditures by Function 119 Taxable Assessed Values 120 Schedule of Direct and Overlapping Bonded Debt 121 Schedule of Legal Debt Margin 122 Property Tax Levies and Tax Collections 123 Insurance in Force 124-125 Demographic Statistics 126 Principal Taxpayers and Major Employers 127 Property Value, Construction, and Bank Deposits 128 Property Tax Rates — Direct and Overlapping Governments 129 Miscellaneous Statistics 130 iii 23920 Valencia Blvd. Suite 300 Santa Clarita California 91355-2196 City of Santa Clarita November 30, 1997 Honorable Mayor Phone (805)259-2489 Fax (805) 259-8125 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, 1997. Responsibility for both the • accuracy of the data and the completeness and fairness of the presentation, including all • disclosures, rests with the City's management. To the best of our knowledge and belief, the • enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account • groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City s financial activities have been included. • • - Organization of This Report • The Comprehensive Annual Financial Report is prepared in accordance with generally • accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB) and includes the report of the independent public accounting firm • of Moreland & Associates. • Organization of the financial report follows the guidelines set forth by the Government • Finance Officers Association of the United States and Canada (GFOA)'and the California • Society of Municipal Finance Officers (CSMFO). A Certificate of Achievement for • Excellence in Financial Reporting is presented by the GFOA and a Certificate of Award for • Outstanding Financial Reporting by the CSMFO to those entities whose comprehensive • annual financial reports are judged to substantially conform to program standards. In order to it • receive the awards, a governmental unit must publish an easily readable and efficiently • organized comprehensive annual financial report that conforms to program standards. Such a report must satisfy both generally accepted accounting principles and applicable legal • requirements. • The City of Santa Clarita received both awards for the.last eight 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. • v® • - - PRINTED ON RECYCLED PAPER it • In accordance with the above-mentioned guidelines, the Comprehensive Annual Financial report is divided into three sections: I. Introductory Section Letter of transmittal GFOA Certificate of Achievement for Excellence in Financial Reporting CSMFO Certificate of Award for Outstanding Financial Reporting Officials of the City of Santa Clarita City organization chart II. Financial Section Independent auditors' report General purpose financial statements Notes to general purpose financial statements Supplemental financial statements and schedules 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, 1997, 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. vi 4 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. I The City also maintains an encumbrance accounting • system as one technique of accomplishing budgetary control. • Commitments for materials and services, such as purchase orders and contracts, are recorded • during the year as encumbrances to assist in controlling expenditures. Open encumbrances are reported as a reserve of fund balance at the end of a fiscal year for all governmental funds. • Encumbrances at year end lapse and then are added to the following year's budgeted • appropriations. The Reporting Entity • The City of Santa Clarita was officially incorporated on December 15, 1987, after a ballot . measure was passed by the City's residents. The City operates under a Council -Manager form of government and provides, either directly or under contract with the County of Los Angeles, a full range of municipal services including public safety, public works, parks and • recreation, community development, etc. This report includes all funds and account groups vii • of the City of Santa Clarita, Santa Clarita Redevelopment Agency and Santa Clarita Public Financing Authority. . 5 General Government Functions A summary of the general government functions overall operating results for the fiscal year ended June 30, 1997 and the amount and percentage of increases and decreases in relation to prior year revenues and expenditures is presented below. General government functions include the General, Special Revenue, Debt Service, Capital Project and Expendable Trust funds. Details of these revenue and expenditure amounts (all amounts are in thousands) by fund, can be found in the accompanying general purpose financial statements. . REVENUES: FISCAL YEAR 1996-97 REVENUES INCREASE PERCENT FY 96-97 PERCENT (DECREASE) OF INCREASE AMOUNT OF TOTAL FROM FY 95-96 (DECREASE) TAXES $ 23,230 36.0 % $ 524 2.3 % LICENSES AND PERMITS 1,513 2.3 (236) - (13.5) DEVELOPER FEES 2,215 3.4 (1,532) (40.9) USE OF MONEY & PROPERTY 2,382 3.7 (15) 0.6 REVENUES FROM OTHER AGENCIES 27,932 43.3 6,234 28.7 FINES AND FORFEITURES 454 0.7 9 2.0 SERVICE CHARGES & OTHERS 6,719 10.4 1,387 26.0 TOTALS $ 64,445 100.0 % $ 6,371 - 11.0 Licenses & Permits 2.3% Developer FE 3.4% Use of Money & Prol 3.7% Taxes Other Agencies 43.3% viii Service Chrgs & Others 10.4% ies & Forfeitures 0.7% The City experienced an overall increase of 11.0 % in general government revenues. This increase is a reflection of the improvement of California's economy in general, as well as the rapid growth of the City in particular. The City saw a gain in revenue from Taxes of 2.3% from last year's total primarily due to an increase in the Transient Occupancy Tax of 20.1% and Real Property Transfer Tax of 44.6%. The increase in Transient Occupancy Tax is due to increased tourism. Real Property Transfer Tax has seen an increase due to the modest recovery in California's housing market. Sales tax, the City's largest revenue source, increased by 1.1% as Santa Clarita continues to attract new businesses. Revenue from Licenses and Permits fell by 13.5% partially as a result of fewer residents needing building permits for earthquake repairs. This 13.5% decrease is also due to fewer Highway Encroachment Permits being issued this year. Developer Fees revenues are collected at the approval of a project, but not recognized until expenditures are incurred. This revenue source experienced a 40.9% decrease during fiscal year 1996-97 as the City is beginning to rely more on alternative sources of funding for . capital projects. A Revenues from Use of Money and Property decreased a slight 0.6 % due to several tenants moving out of the City Hall building. This loss in revenue was partially offset by an increase in interest income. Revenues from Other Agencies include many of the State and County subventions that the City receives. This revenue category experienced an overall increase of 28.7 % due to several reasons. The City has obtained funds from new grant programs in fiscal year 1996-97 including the Office of Criminal Justice Grant, BJA Law Enforcement Grant and the Supplemental Law Enforcement Grant. A large part of this increase is also due to the City receiving over 100% more funds for the Community Development Block Grant programs consisting of the Home Program, the CDBG Supplement Program, and the CDBG HUD program. Finally, revenue from other agencies also increased due to an Economic Development Administration Grant of over $2 million the City received this year. Fines and Forfeitures, which consist primarily of Vehicle Code Fines, increased by 2.0% as a result of increased efforts related to parking enforcement. Revenues from Service Charges and Others experienced an increase of 26.0 %. This large increase can be attributed to two factors. The most significant factor is the transfer of several landscape maintenance districts from the County to the City in fiscal year 1996-97 resulting . in over $1 million in additional revenue. Other factors that generated additional revenue include higher charges for various building and safety services as a result of a cost recovery audit the City recently underwent, as well as new recreation programs being added this year. ix FISCAL YEAR 1996-97 EXPENDITURES EXPENDITURES: GENERAL GOVERNMENT PUBLIC SAFETY PUBLIC WORKS PARKS & RECREATION COMMUNITY DEVELOPMENT CAPITAL OUTLAY DEBT SERVICE TOTALS Public W 6.8% Parks & Recreation 14.7% Community Deveiopment 16.6% Public Safety 21.3% ieneral Government 15.3% Debt Service 5.8% r.. Outlay 19.5% During fiscal year 1996-97, the City saw an overall decrease of 13.1 % in expenditures. The first category of expenditures, General Government increased by 10.5 % due to several factors. One is the reclassification of Public Works Administration from Public Works category. In addition, the Office of Criminal Justice program was only partially under way in fiscal year 1995-96. Public Safety saw an increase of 5.9%. This is due to Emergency Preparedness Division expenditures having been classified in this category in fiscal year 1996-97 and in Parks and Recreation in fiscal year 1995-96. x INCREASE PERCENT FY 96-97 PERCENT (DECREASE) OF INCREASE AMOUNT OF TOTAL FROM FY 95.96 (DECREASE) $ 7,415 15.3 % $ 707 10.5 %n 10,330 21.3 575 5.9 3,326 6.8 (446) (11.8) 7,167 14.7 101 1,4 8,091 16.6 1,458 22.0 ' 9,483 19.5 (9,699) (50.6) 2,796 5.8 2 0.1 $ 48,608 100.0 $ (7,302) (13.1) Public Safety 21.3% ieneral Government 15.3% Debt Service 5.8% r.. Outlay 19.5% During fiscal year 1996-97, the City saw an overall decrease of 13.1 % in expenditures. The first category of expenditures, General Government increased by 10.5 % due to several factors. One is the reclassification of Public Works Administration from Public Works category. In addition, the Office of Criminal Justice program was only partially under way in fiscal year 1995-96. Public Safety saw an increase of 5.9%. This is due to Emergency Preparedness Division expenditures having been classified in this category in fiscal year 1996-97 and in Parks and Recreation in fiscal year 1995-96. x • • • • Public Works experienced an 11.8 96 decrease in fiscal year 1996-97 due to Public Works administration expenditures being classified in general government this year. A slight increase of 1.4% in Parks and Recreation occurred due to new recreation programs • such as Pride in Parenting and additional community center programs. These increases were partially offset by reclassifying Emergency Preparedness in Public Safety this year. • "An overall increase of 22.0% in Community Development from fiscal year 1995-96 to fiscal year 1996-97 reflects increase in development activity as well as additional Building and . Safety personnel and engineers. Planning staff have also been added to accommodate workload increases. • Capital Outlay decreased by 50.6 % primarily due to earthquake related projects being nearly complete. Earthquake projects decreased by more than 90% in fiscal year 1996-97. Projects funded by State Park grants were nearly complete such as the South Fork Trail Phase • IV. The Bouquet Bike Trail Phase Il project, funded by Bikeway funds, was also completed • in fiscal year 1996-97. These decreases were partially offset by increases in other capital • project expenditures such as the Via Princessa Roadway and the Newhall neighborhood and - West Newhall projects, as well as the new Hotel Conference Center project. • Debt Service expenditures decreased by 0.1 % indicating that the City's long-term liabilities • have remained almost constant. 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 theAntelope Valley. This enterprise fund was created to provide management with information relating to • transit operations, which include debt service and depreciation and amortization. For fiscal year 1996-97, Proposition A funds of $2,734,685, Proposition C funds of $839,289, and TDA • funds of $2,892,371 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 o the Supplemental Information portion of this report. • Gann Limit • Proposition 4, the "Gann initiative, was passed by California voters in 1978 and is intended • to limit government appropriations. According to California law, cities must use the 1978-79 • • • xi • • appropriations as a base year and modify that figure by the composite consumer price index and population changes which have accrued in subsequent years. Because Santa Clarita is a newly incorporated city, the Los Angeles County Local Agency Formation Commission used 1985-86 fiscal year appropriations at incorporation as the base year on which the City will modify each year. The City has since performed a study to increase the limit, and City appropriations remain below the Gain limitation and are expected to continue in that respect in the near future. Cash Management The City operates its pooled idle cash investments under the "Prudent Investor" standard 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 fifth 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 Treasurers Local Agency Investment Fund, Los Angeles County Pooled Investment Fund,. Federal and Federal Agency instruments, Bankers Acceptances, and Commercial Paper. The City's diversified investment portfolio allows for flexibility and safety of the total invested funds. The weighted average yield on such investments for the year was 5.644% with total interest earnings for all funds at $1,795,239. Debt Administration In May 1991, the City entered into a master lease and option to purchase agreement in the amount of $2,150,000 for the lease of thirteen buses. Such agreement carries an interest of 6.6% payable Simi -annually, due from November 1, 1991, through May'l, 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, 1997, the master lease obligation aggregated $1,032,255. 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 fust rated bond issue in which Standard and Poor assigned an A- Bond rating to the City of Santa Clarita. As of June 30, 1997, the City's obligation for Public Financing Authority Revenue Bonds - Series 1991 is $18,800,000. xii • • • 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, 1997, equals $3,245,000. • 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 j • 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, 1997, the City's obligation is $500,000. 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, 1997, the City's obligation for the Note Payable is $2,557,436 in original loan proceeds and $367,713 of accrued interest. • In April,1993, the City entered into an agreement whereby the City will reimburse Home • Depot Company $690,000 for certain public improvements. Interest on the note accrues at • the rate of 7% per year. Payments are due quarterly and will equal up to 50% of the sales tax revenue generated monthly from the operation of the Home Depot. The payments will be made for a period of 7 years or until accrued interest and principal are paid in full. As of • June 30, 1997, the unpaid principal balance was $177,727. • 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, 1997, the City had received $452,273 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. •. In August -1996, the City entered into a lease with an option to purchase agreement in the • amount of $107,381 for the lease of property through Municipal Leasing Associates, Inc. • Such agreement carries interest at the rate of 5.38% per annum on the unpaid principal • balance payable semi-annually from. January 30, 1997 through July 30, 2000. As of June 30, 1997 the unpaid principal balance was $95,828. • • a • Fiduciary Operations • Trust and agency funds are maintained to account for assets held by the City in a trustee • capacity for individuals, private organizations, other governments, and other funds. The • xiii • • City's General Trust Fund is an expendable trust fund which accounts for assets and activities restricted to a specific purpose in accordance with a formal intent. An Agency fund is custodial in nature and is used to receive and disburse funds which do not belong to the City. The City's agency funds are the Deferred Compensation Plan, the Community Facilities District No. 92-1, and Assessment District No. 92-2: The Deferred Compensation Plan represents employee contributions invested in accounts with the International City Managers Association (ICMA) Retirement Corporation. The Community Facilities District No. 92-1 represents bond proceeds from the sale of Special Tax Bonds, Series A. These bonds were issued to finance a portion of the costs of acquiring certain public infrastructure improvements located within the vicinity of the Valencia Town Center. The bonds were issued pursuant to the Mello -Roos Community Facilities Act of 1982. This fund was established during fiscal year 1992-93. Finally, Assessment District No. 92-2 represents bond proceeds from Limited Obligation Improvement Bonds, Series 1996 which were issued to finance the acquisition of certain public improvements ih the area of Golden Valley Road. These bonds were issued pursuant to the Improvement Bond Act of 1915. This fund was established during fiscal year 1996-97. 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 addition to general liability, the City maintains individual policies for autos, property, flood, special events, and earthquake damage where appropriate. As a precautionary measure, all employees in a position with significant financial responsibility are independently bonded. The individual bond compliments the blanket dishonest 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 through 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 injuries occur. In addition, the City has implemented a stringent risk assessment and contract review system which ensures that'a11 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 excellent loss record sustained by the City since incorporation. xiv • • • General Fixed Assets • The City's general fixed assets represent those fixed assets used in the performance of general • government functions. At June 30, 1997, the City's general fixed assets aggregated • $49,960,960. This amount represents the original cost of the assets or fair market value at the date of contribution to the City. No depreciation of general fixed assets is recognized in the • City's accounting system. • • The General Fixed Assets Account Group does not include those assets defined as . "infrastructure assets" (i.e., roads, curbs, gutters, sidewalks, etc.). Such assets are generally immovable and are deemed to be of value only to the City. • • Other City Highlights The City of Santa Clarita 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 garnering citizen input is the Community Wide Strategic Plan, Share the Vision M. This short-range planning document to be prepared in February of 1998, will set the tone and • direction for. the City into 2000: Key items will be identified through the plan and acted upon • through a collaborative effort between different agencies and community groups. 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. We look to the ingenuity of staff to seek out grants and obtain funding from various local, state and federal sources. A variety of significant projects were set in motion or completed during the 1996-97 fiscal year. Construction of the McBean Parkway storm drain and street improvements was completed this year which allows for development of the adjacent land including the future hotel/conference center. This project is funded entirely by a grant by the Economic Development Administration. • The first of five phases of the West Newhall street improvements was constructed by March • 1997. This project increases pedestrian safety by installing curb, gutter, and sidewalk in the • neighborhood. The design of the second phase of this project began design this year with construction anticipated by December 1997. • xv The Four Oaks dewatering wells design was completed. These wells will alleviate the high ground water problem in the Four Oaks neighborhood. The Metrolink Station located on Soledad Canyon Road and Commuter Way provides the City of Santa Clarita with multiple transit related functions. Not only is it the first and primary light-rail commuter station, but also serves as the City's only Transit Center. The station received approximately $650,000.00 in upgrades that included the construction of a new security and transit supervisor's building, landscape and restroom upgrades, canopy and windbreak improvements and the completion of phases II and III of the City's first Art Project. The City of Santa Clarita's Field Services Facility serves as the primary facility to conduct the majority of Public Works, Parks, Solid Waste Management and Transit functions within the City limits. A project completed this year at the Field Services Facility constructed 4200 square feet of new office space and 4200 square feet of mezzanine. The improvement was conducted primarily to provide adequate office and storage space for the City's Transit contractor. Additional mezzanine space will be utilized for the City's growing storage needs. The Bouquet/Seco traffic signal interconnect project began this year which will link all traffic signals along these roads. The purpose of this project is synchronization of all the traffic signals which improves traffic flow and reduces travel times. The alignment study for both the Magic Mountain ParkwayVia Princessa project and the Wiley Canyon realignment project were also. completed this year. In conjunction with the Newhall Redevelopment Agency, revitalization efforts are underway and include the reconstruction of Railroad Avenue and a Newhall Metrolink Station. This project will begin construction in October 1997. In addition to these projects were the annual overlay, slurry, sidewalk replacement and median modification projects. The City began construction of a 1.5 mile stretch of the Santa Clara River Trail which will connect the entire twelve mile system. These links in the overall trail system bring the City one step closer to the premier trail system envisioned within the General Plan. The City also began the design of the first phase of the City Central Park. This phase, complete with sport fields, will provide additional recreational opportunities for our residents of the City. In concert with this project is the planning for the future Santa Clarita Parkway. Economic Condition and Outlook Southern California's economy has rebounded extraordinarily and is expected to outpace the nation's economy in 1998. While the state enjoys continued strength in the entertainment, tourism, apparel, and new technology industries, we are beginning to see a migration of xvi people back to California after a long recession. According to local realtors, California's real estate market is also making a recovery from one of the worst declines in California's history. According to expert economists, the outlook of California's overall economy is favorable. • Santa Clarita's economy remains one of the strongest in the areas with representative industries in three of the four strong growth sectors --entertainment, tourism, and new technology. The California Retail Survey listed Santa Clarita as the fastest growing Southern • California retail market over the past six years with a 41% growth rate. This diversity contributes to Santa Clarita's healthy economy which has remained strong even during • downturns. • Santa Clarita has the lowest unemployment rate of any city in Los Angeles County with a population of over 100,000, has the sixth largest labor force in Los Angeles County and was • named by the California Business Mdgazine as the second best city in California in which to • do business. = Examples of recent commercial development include a 95,000 square foot commercial center with an Albertson's supermarket, an auto repair shop and two restaurants; a new Mitsubishi • dealership, Price/Costco store expansion; and a shopping center which includes Orchard • Supply and Hardware, Office Max, Hollywood Video, Aaron Brothers art store, and • Presidente restaurant; and the Spectrum Health Club, 70,000 square foot facility to name a few. Future developments include a Valencia Entertainment Center, an IMAX theater, a Saturn dealership, and a 273 room regional hotel and conference center. The City of Santa Clarita's robust economy, desirable location, award-winning schools, and low crime rate makes this one of the most enviable cities in which to live and work. And as the City continues to attract new businesses, our financial status is expected to remain very solid in many years to come. Independent Audit • An audit by independent certified public accountants is required annually. The accounting firm of Moreland & Associates 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 xvii • June 30, 1996. Based on the latest available data from GFOA, the City of Santa Clarity was one of 1,395 municipalities nationwide, of approximately 36,000 municipal governments, to receive this award. A GFOA Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to GFOA Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments The preparation of this report could not have been 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 division who assisted and contributed to its preparation, in particular, Barbara Boswell, Accounting Manager; Michele. Hansen and April Jordan, Accountants; Jackie Bialas, General Accounting Specialist; and Nina Giangreco, Graphic Designer. 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, Steve Stark Director of Administrative Services xviii 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, 1996 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. W ice ??G ITA NIIEO TA y H i 7 Po .. COROMIOIM s^ Preside Executive Director xix U 0 California Society of Municipaf Finance Officers Certificate of Award Outstanding Financial Reporting 1995-96 Presented to the City of Santa Clarita This cernfleate is Issued in recognition ofineeting professional standards and criteria In reporting which reflect a high level of quality In the annual financial statements and In the underlying accounting system from which the reports were prepared February 24,1997 1hLjsi YC asfoo�I TteIt I St d de Committee . _ Presideo4 CSMFO . r. 39 Dedicated to Excellence in Municipal Financial Management H OFFICIALS OF THE CITY OF SANTA CLARITA . City Council Hamilton C. Smyth Janice H. Heidt Carl Boyer III Jo Anne Darcy Jill Klajic City Officials MAYOR MAYOR PRO -TEM COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER George Caravalho CITY MANAGER. Kenneth Pulskamp ASSISTANT CITY MANAGER xxi DIRECTOR OF PLANNING &. BUILDING SERVICES Carl Newton CITY ATTORNEY Sharon Dawson CITY CLERK Steve Stark DIRECTOR OF ADMINISTRATIVE SERVICES Terri Maus ACTING DIRECTOR OF FIELD SERVICES Rick Putnam DIRECTOR OF PARKS, RECREATION& COMMUNITY SERVICES Anthony Nisich DIRECTOR OF TRANSPORTATION & ENGINEERING SERVICES CITY ENGINEER xxi City of Santa Claiita ORGANIZATION CHAR Citizens of Santa Clarita City Council City Manager L Assistant City Manager T • • • • • • � • • • • • • Ci[y Attomry • • • • • • • Parks, Recreation & Public - Community Services .Safety . • • • • • • • • • • • • • • • • • • City Clerk . • Budget • Risk Management • Intergovernmental Relations • Publiclnformation • Human Resources - Transportation & I I Planning & I I Field I I Administrative Engineering Services BuildingServices Services Services City of Santa Clarita �-t Ar / �---• 'L 14 N LEGEND CITY LIMIT BOUNDARY 1201 DOVE STREET, SUITE 680 c, �// - .-- f- , NEWPORT BEACH, CALIFORNIA 92660 M oreland &,Wj4 cm&, (714)221-0025 CERTIFIED PUSUC ACCOUNTANTS 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 September 26, 1997 The Honorable City Council of the City of Santa Clarita, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of Santa Clarita, California as of and for the year ended June 30, 1997, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Santa Clarita 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 and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of.the United States. Those standards require 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, 1997, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with li generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated September 26, 1997 on our consideration of the City of Santa Clarita internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Clarita taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplementary information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. 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 was notauditedby us and, accordingly, we do not express an opinion thereon. W4' ' GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF SANTA CLARITA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1997 With Comparative Totals for June 30, 1996 Assets: Cash and investments (Notes if and 2) Cash and investments with fiscal agents (Notes If, 2 and 10) Accounts receivable Interest receivable Due from other funds (Note 8) Due from other governments Deposits Prepaid items Loans receivable (Note 5) Advances to other funds Property, plant and equipment (Notes Ig 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 Governmental Fund Types Special Debt Capital General Revenue Service Projects $ 8,000,732 $ 25,309,286 $ 1,013,130 $ 1,687,948 199,894 3,145,332 859,048 129,509 200,120 204 5,135,646 554,933 7,804,018 1,280,477 61,163 14,790 236,000 1,998,306 61,470 $ 19,025,621 $ 34,484,732 $ 1,687,948 $ 2,493,705 See Accompanying Notes to Financial Statements. 2 Fiduciary Account Groups Proprietary Fund Types Fund Types General General Totals Internal Trust and Fixed Long -Tenn (Memorandum Only) Enterprise Service Agency Assets Debt 1997 1996 22,856,983 22,856,983 22,808,890 $ 11,024,747 $ 1,405,836 $ 6,998,360 $49,960,960 $ 24,544,931 $ 151,626,840 $ 137,123,363 (Continued) 3 $ 1,007,797 $ 376,224 $ 35,707,169 $ 28,869,007 6,450,887 8,338,729 7,443,552 $ 38,025 119 170,937 4,213,461 4,107,365 7,651 312 337,796 273,790 5,135,646 3,177,642 1,066,833 10,706,261 7,069,319 489,500 489,500 489,500 295 76,248 67,262 236,000 2,059,776 1,612,248 9,365,963 390,269 $ 49,960,960 59,717,192 58,849,168 64,131 64,131 76,526 $ 1,687,948 1,687,948 2,279,094 22,856,983 22,856,983 22,808,890 $ 11,024,747 $ 1,405,836 $ 6,998,360 $49,960,960 $ 24,544,931 $ 151,626,840 $ 137,123,363 (Continued) 3 CITY OF SANTA CLARITA Combined Balance Sheet - All Fund Types and Account Groups (Continued) June 30, 1997 With Comparative Totals for June 30, 1996 Liabilites. Equity and Other Credits Liabilities: Accounts payable and accrued liabilities Deferred revenue (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 Ig and 3) Contributed capital (Note 16) Retained Earnings (deficits) (Note 13: Reserved Unreserved Fund Balances (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 Projects $ 1,944,205 $ 1,152,192 $ 203,934 1,143,524 2,939,538 9,666,989 18,924 12,250 4,252,101 3,099,979 18,010,820 222,858 5,763,912 5,697,731 $ 1,687,948 1,413,725 10,161,730 16,869,443 949,433 (6,093,262) (92,311) 15,925,642 16,473,912 1,687,948 2,270,847 $ 19,025,621 $ 34,484,732 $ 1,687,948 $ 2,493,705 See Accompanying Notes to Financial Statements. 4 Fiduciary Account Groups Proprietary Fund Types Fund Types General General Totals Internal Trust and Fixed Long -Term (Memorandum Only) Enterprise Service Agency Assets Debt 1997 1996 $ 896,195 $ 1,002,453 $ 123,373 600 2,421,470 883,545 4,453,517 4,763,038 285,639 6,543,378 1,288,092 6,998,360 $ 49,960,960 2,226,649 489,500 1,765,220 117,744 4,481,369 117,744 49,960,960 $ 5,322,352 $ 4,722,965 4,083,662 2,898,344 9,685,913 11,152,870 2,433,720 2,344,593 5,135,646 3,177,642 4,453,517 3,176,177 $ 24,544,931 29,593,608 31,804,202 24,544,931 60,708,418 59,276,793 49,960,960 49,187,319 2,226,649 1,622,071 489,500 489,500 1,882,964 690,492 14,563,316 10,882,210 27,980,606 20,966,662 (6,185,573) (5,991,684) 90,918,422 77,846,570 $ 11,024,747 $ 1,405,836 $ 6,998,360 $ 49,960,960 $ 24,544,931 $ 151,626,840. $ 137,123,363 5 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, 1997 With Comparative Totals for the Year Ended June 30, 1996 Other Financing Sources (Uses): Contributions from property owners Governmental Fund Types 787,155 Proceeds from long-term debt (Note 4c) Special Debt Capital General Revenue Service Projects Revenues: Operating transfers in 598,692 74,619 1,946,353 Taxes $ 23,230,334 (2,148,277) (7,089,062) Licenses and permits 1,513,469 (1,442,204) (7,014,443) 2,095,393 Developer fees Excess (Deficiency) of Revenues $ 2,214, 931 Use of money and property 947,136 1,202,768 $ 109,510 $ 122,807 Revenue from other agencies 6,154,122 21,772,326 5,467 Fines and forfeitures 152,506 301,485 8,335,007 (591,146) Service charges 2,725,039 3,083,643 8,138,905 2,279,094 Otherrevenue 408,767 90,949 $ 16,473,912 $ 1,687,948 Total Revenues 35,131,373 28,666,102 109,510 128,274 Expenditures: Current Operating: General government 6,797,943 265,152 351,655 Public safety 10,163,153 167,178 Public works 747,618 2,167,733 Parks and recreation 7,166,622 Community development 5,253,205 2,837,881 Capital outlay 129,059 7,878,708 1,475,060 Debt service: Principal retirement 1,090,822 Interest and fiscal charges 1,705,227 Total Expenditures 30,257,600 13,316,652 2,796,049 1,826,715 Excess (Deficiency) of Revenues Over Expenditures 4,873,773 15,349,450 (2,686,539) (1,698,441) Other Financing Sources (Uses): Contributions from property owners 787,155 Proceeds from long-term debt (Note 4c) 107,381 Advances from other funds (Note 4d) 149,040 237,017 Operating transfers in 598,692 74,619 1,946,353 Operating transfers out (2,148,277) (7,089,062) Total Other Financing Sources (Uses) (1,442,204) (7,014,443) 2,095,393 1,024,172 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 3,431,569 8,335,007 (591,146) (674,269) Fund Balances - Beginning of Year 12,494,073 8,138,905 2,279,094 2,945,116 Fund Balances - End of Year $ 15,925,642 $ 16,473,912 $ 1,687,948 $ 2,270,847 See Accompanying Notes to Financial Statements. 2 Fiduciary Fund Type Totals Expendable _ (Memorandum Only) Trust 1997 1996 $ 23,230,334 $ 22,706,122 1,513,469 1,749,220 2,214,931 3,746,441 2,382,221 2,396,859 27,931,915 21,697,872 453,991 445,410 5,808,682 3,668,844 $ 410,672 910,388 1,663,501 410,672 64,445,931 58,074,269 7,414,750 6,707,617 10,330,331 9,754,629 410,672 3,326,023 3,772,255 7,166,622 7,065,890 8,091,086 6,633,168 9,482,827 19,182,077 1,090,822 1,039,967 1,705,227 1,753,956 410,672 48,607,688 55,909,559 15,838,243 2,164,710 787,155 107,381 386,057 597,081 2,619,664 4,932,026 (9,237,339) (10,654,102) (5,337,082) (5,124,995) 10,501,161 (2,960,285) 25,857,188 28,817,473 $ $ 36,358,349 $ 25,857,188 7 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 Projects Funds For the Year Ended June 30, 1997 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 (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds from long-term debt (Note 4c) Advances from other funds (Note 4d) Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Fund Balances - End of Year See Accompanying Notes to Financial Statements. 8 General Fund Variance Favorable Budget Actual (Unfavorable) $ 22,960,095 $ 23,230,334 $ 270,239 1,564,415 1,513,469 (50,946) 793,295 947,136 153,841 5,364,013 6,154,122 790,109 102,465 152,506 50,041 2,400,135 2,725,039 324,904 96,200 408,767 312,567 33,280,618 35,131,373 1,850,755 11,653,074 6,797,943 4,855,131 10,295,684 10,163,153 132,531 836,675 747,618 89,057 7,833,991 7,166,622 667,369 6,261,721 5,253,205 1,008,516 701,439 129,059 572,380 37,582,584 30,257,600 7,324,984 (4,301,966) 4,873,773 9,175,739 107,381 107,381 718,940 598,692 (120,248) (171,924) (2,148,277) (1,976,353) 654,397 (1,442,204) (2,096,601) (3,647,569) 3,431,569 7,079,138 12,494,073 12,494,073 $ 8,846,504 $ 15,925,642 $ 7,079,138 Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ 1,512,886 $ 2,214,931 $ 702,045 15,000 1,202,768 1,187,768 35,673,451 21,772,326 (13,901,125) 265,700 301,485 35,785 2,255,527 3,083,643 828,116 23,500 90,949 67,449 39,746,064 28,666,102 (11,079,962) 477,821 265,152 212,669 302,182 167,178 135,004 2,985,188 2,167,733 817,455 6,610,578 2,837,881 3,772,697 28,712,731 7,878,708 20,834,023 39,088,500 13,316,652 25,771,848 657,564 15,349,450 14,691,886 44,020 74,619 30,599 (6,855,849) (7,089,062) (233,213) (6,811,829) (7,014,443) (202,614) (6,154,265) 8,335,007 14,489,272 8,138,905 8,138,905 $ 1,984,640 $ 16,473,912 $ 14,489,272 All Budgeted Debt Service Funds Variance Favorable Budget Actual (Unfavorable) $ 109,510 $ 109,510 109,510 109,510 $ 1,090,822 1,090,822 1,590,776 1,556,187 34,589 2,681,598 2,647,009 34,589 (2,681,598) (2,537,499) 144,099 431,731 1,946,353 1,514,622 431,731 1,946,353 1,514,622 (2,249,867) (591,146) 1,658,721 2,279,094 2,279,094 $ 29,227 $ 1,687,948 $ 1,658,721 9 (Continued) 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 Projects Funds For the Year Ended June 30, 1997 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 (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds from long-term debt (Note 4c) Advances from other funds (Note 4d) Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Fund Balances - End of Year See Accompanying Notes to Financial Statements. 10 All Budgeted Capital Projects Funds Variance Favorable Budget Actual (Unfavorable) $ 112,812 $ 112,812 5,467 5,467 118,279 118,279 $ 538,000 351,655 186,345 2,508,704 855,480 1,653,224 3,046,704 1,207,135 1,839,569 (3,046,704) (1,088,856) 1,957,848 237,017 237,017 237,017 237,017 (3,046,704) (851,839) 2,194,865 2,922,792 2,922,792 $ (123,912) $ 2,070,953 $ 2,194,865 • • • ! • • Totals (Memorandum Only) Variance • Favorable • Budget Actual (Unfavorable) • $ 22,960,095 1,564,415 $ 23,230,334 1,513,469 $ 270,239 (50,946) • 1,512,886 2,214,931 702,045 • 808,295 2,372,226 1,563,931 • 41,037,464 27,931,915 (13,105,549) ! 368,165 453,991 85,826 4,655,662 5,808,682 1,153,020 • 119,700 499,716 380,016 • 73,026,682 64,025,264 (9,001,418) • • • 12,668,895 7,414,750 5,254,145 • 10,597,866 10,330,331 267,535 • 3,821,863 2,915,351 906,512 • 7,833,991 7,166,622 667,369 12,872,299 8,091,086 4,781,213 ! 31,922,874 8,863,247 23,059,627 • • 1,090,822 1,090,822 • 1,590,776 1,556,187 34,589 • 82,399,386 47,428,396 34,970,990 • - (9,372,704) 16,596,868 25,969,572 • 107,381 107,381 237,017 237,017 • 1,194,691 2,619,664 1,424,973 • (7,027,773) (9,237,339) (2,209,566) • (5,725,701) (6,273,277) (547,576) • • • • (15,098,405) 10,323,591 25,421,996 • 25,834,864 25,834,864 • $ 10,736,459 $ 36,158,455 $ 25,421,996 • • 11 CITY OF SANTA CLARITA Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types For the Year Ended June 30, 1997 With Comparative Totals for the Year Ended June 30, 1996 Operating Expenses: Administrative 379,862 Internal Totals 311,484 Transportation services Enterprise Service (Memorandum Only) 5,556,867 Funds Funds 1997 1996 Operating Revenues: Depreciation and amortization 708,034 90,454 798,488 Transportation revenue $ 1,825,913 6,931,066 $ 1,825,913 $ 1,832,299 Charges for services Operating (Loss) $ 912,573 912,573 1,039,074 Insurance reimbursement Retained Earnings 10,000 10,000 26,233 Otherrevenue 49,465 49,465 2,169 Total Operating Revenues 1,875,378 922,573 2,797,951 2,899,775 Operating Expenses: Administrative 379,862 37,748 379,862 311,484 Transportation services 5,843,170 (23,611) 5,843,170 5,556,867 Services and supplies 195,410 1,196,595 1,196,595 230,539 Depreciation and amortization 708,034 90,454 798,488 693,449 Total Operating Expenses 6,931,066 1,287,049 8,218,115 6,792,339 Operating (Loss) (5,055,688) (364,476) (5,420,164) (3,892,564) Non -Operating Revenues (Expenses): Interest income 6,466,345 37,748 37,748 38,974 Interest expense (338,418) (23,611) (362,029) (451,812) Intergovernmental grants 195,410 155;000 195,410 524,662 Net Non -Operating 1,263,979 (195;339) 1,068,640 1,941,336 Revenues (Expenses) (143,008) 14,137 (128,871) 111,824 Net loss before operating transfers (5,198,696) (350,339) (5,549,035) (3,780,740) Operating Transfers: Operating transfers in 6,466,345 155,000 6,621,345 5,882,076 Operating transfers out (3,670) (3,670) (160,000) Total Operating Transfers 6,462,675 155;000 6,617,675 5,722,076 Net Income (Loss) 1,263,979 (195;339) 1,068,640 1,941,336 Add depreciation on contributed assets 123,832 123,832 123,193 Net Increase (Decrease) in Retained Earnings 1,387,811 (195,339) 1,192,472 2,064,529 Retained Earnings (Deficit) - Beginning of Year 866,909 313,083 1,179,992 (884,537) Retained Earnings - End of Year $ 2,254,720 $ 117,744 $ 2,372,464 $ 1,179,992 See Accompanying Notes to Financial Statements. 12 CITY OF SANTA CLARITA Combined Statement of Cash Flows All Proprietary Fund Types For the Year Ended June 30, 1997 With Comparative Totals for the Year Ended June 30, 1996 Cash Flows From Operating Activities: Operating loss Adjustments to reconcile operating loss to net cash provided (used) by operating activities: Depreciation and amortization Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governments (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase(decrease)in deferred revenue Total Adjustments Net Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities: Intergovemmental grants 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 by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition of capital assets Contributed capital Proceeds from long-term debt Principal payments on long-term debt Interest expense on long-term debt Net Cash Used by Capital and Related Financing Activities Cash Flows from Investment Activities: Interest on investments Net Increase (Decrease) in Cash and Cash Equivalents Cash and cash equivalents - Beginning of Year Cash and cash equivalents - End of Year (Note If) See Accompanying Notes to Financial Statements. Internal Totals Enterprise Service (Memorandum Only) Fund Funds 1997 1996 $ (5,055,688) $ (364,476) $ (5,420,164) $ (3,892,564) 708,034 90,454 798,488 693,449 (21,889) (119) (22,008) (9,397) (13,864) (13,864) (702,324) 13,903 3,206 17,109 (5,929) 49,902 472,106 522,008 (509,249) 600 736,086 565,647 1,301,733 (532,850) (4,319,602) 201,171 (4,118,431) (4,425,414) 195,410 195,410 524,662 883,545 883,545 1,334,109 6,466,345 155,000 6,621,345 5,882,076 (3,670) (3,670) (160,000) (1,316,760) (17,349) (1,334,109) (1,646,776) 6,224, 870 137,651 6,362,521 5,934,071 (591,893) (284,874) (876,767) (660,020) 728,410 728,410 1,292,560 256,424 256,424 195,848 (1,761,040) (166,633) (1,927,673) (1,678,582) (338,418) (23,611) (362,029) (451,812) (1,962,941) (218,694) (2,181,635) (1,302,006) 36,794 36,794 32,276 (57,673) 156,922 99,249 238,927 57,673 850,875 908,548 669,621 $ - $ 1,007,797 13 $ 1,007,797 $ 908,548 NOTES TO FINANCIAL STATEMENTS • • • MY OF SANTA CLARITA Notes to Financial Statements • June 30, 1997 • 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, 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 rea 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, 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 financial data and activity are reported within the debt service and capital projects fund.types and the general fixed assets and general long-term debt account groups, and the authority's financial data and activity are reported within the debt service fund type. The following specific criteria were used in determining that the Agency and the Authority were blended component units: 15 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 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. 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 the accumulation of resources for, and payment of, interest and principal on long-term debt. Capital Projects Funds - account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Proprietary Fund Types: Enterprise Fund - accounts for operations that are financed and operated in a manner similar to private business 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. 16 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 Internal Service Funds - a( departments within the City. these funds and are charged services rendered. Fiduciary Fund Types: count for activities involved in rendering services to Costs of materials and services used are accumulated in to the user departments as such goods are delivered or Exoendable Trust Fund - accounts for assets and activities restricted to a specific purpose in accordance with a trust agreement. w 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 and Assessment District 92-2. Account Groups: General Fixed Assets Account Grouo -accounts for fixed assets of the City, except for those accounted for in proprietary fund types. General Lone -Tenn Debt Account Grouo - accounts for long-term debt of the City, except for debt accounted for in proprietary fund types. C, Basis of Accounting: Governmental fund types and the expendable trust fund are accounted for using the modified accrual basis of accounting. Generally, revenues are recognized when they become "susceptible to accrual", that is, measurable and available to finance expenditures of the current period. Revenues which are susceptible to accrual include property taxes received within 60 days after year end, 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 principal and 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. 17 9 e. CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 Agency fund types are accounted for using 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 Standards Board Statements and Interpretations, Accounting Principals Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure, 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. 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. lu f. CIT)(OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 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, capital expenditures and debt service expenditures. 3) Budgets for the General, Special Revenue Funds, Debt Service Funds and Capital Projects 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 and Assessment District 92-2 Capital Projects Funds, or the Redevelopment Agency 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. Fund Balance — Budgeted Funds Fund Balance — Nonbudgeted Funds Total Fund Balance Debt Capital Service Proiects $1,687,948 $2,070,953 199,894 ] 687 948 2 270 847 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 Manager. For the year ended June 30, 1997, budgeted appropriations in the governmental funds increased from $75,582,480 to $82,399,386. 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, 1997 fund balances have been reserved for encumbrances carried forward. 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 19 91 h. CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30,1997 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. A substantial portion of the City's investments are in short-term, highly liquid instruments, with original maturities of three months or less, including investments in the California Local Agency Investment Fund and Los Angeles County Pooled Investment Fund totaling $18,052,221. 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 cashand cash equivalents. 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 Building Employee Compensated Absences: 5-12 years 35 years 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 20 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 governmental fund that will pay it. Compensated absences in the amount of $547,922 which are not expected to be liquidated with expendable available financial resources are reported in the General Long -Term Debt Account Group. i. Property Taxes: Property taxes are an enforceable lien on property as of March 1. Taxes are levied on July 1 and are payable in two installments on November 1 and February 1, which become delinquent on December 10 and April 10, respectively. The County of Los Angeles bills and collects property taxes for the City. Remittance of property taxes to the City is accounted for in the City's General Fund. j. Inventories: Inventories are accounted for on the purchase (expenditure) method, whereby expenditures for inventory are written off as incurred. There were no significant inventories on hand at June 30, 1997. k. Claims and Judgments: When it is probable that a claim liability has been incurred at year end and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program claims payable, which includes an estimate for incurred but not reported claims (IBNR), and is recorded in an Internal Service Fund. • 1. Comparative Data • • Comparative total data from the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's • financial position and operations. However, comparative (i.e., presentation of prior • year totals by fund type) data have not been presented in each of the statements since • their conclusion would make the statements unduly complex and difficult to read. M. 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 since interfund transactions are not eliminated. 21 CITY OF SANTA CLARTTA Notes to Financial Statements (Continued) June 30, 1997 n. New Funds The City has established four new special revenue funds (Economic Development Administration, OCJP Grant Fund, BJA Law Enforcement and Supplemental Law Grant) to account for various grants. The OCJP Grant was previously reported within the City's General Fund and the Economic Development Grant was included in the Miscellaneous Grants special revenue fund. This fund restructuring had no effect on fund balance. In addition, the City created the Assessment District No. 92-2 Capital Projects and Agency funds to account for activities related to special assessment debt for which the City has no commitment. 2. CASH AND INVESTMENTS Authorized Investments Under provisions of the City's Investment Policy and bond indentures and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of instruments: Mutual Funds Composed Entirely of U.S. Governmental Securities or other allowable investments Negotiable Certificates of Deposit U.S. Government Securities Bankers Acceptances Commercial Paper Medium -Term Corporate Notes California Local Agency Investment Fund (LAIF) Los Angeles County Pooled Investment Fund Federal Agency Obligations California Local Agency Investment Fund (LAIF) The LAIF is a special fund of the California State Treasury through which local governments may pool investments. Each City or Agency 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. Los Any County Pooled Investment Fund The Los Angeles County Pool is a special fund of the County of Los Angeles through which Cities in Los Angeles County may pool investments. Each City may invest an unlimited amount in the fund. Investments in the pool are highly liquid, as deposits can be converted to cash within 24 hours. 22 CITY OF SANTA CLARTTA Notes to Financial Statements (Continued) June 30,1997 Classification of Del2osits and Investments By Credit Risk Statement No. 3 of the Governmental Accounting Standard Board 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 or collateralized with securities held by the City or the City s agent in the City s name. Category 2 - Deposits which are collateralized with securities held by the pledging financial institution's trust department in the City's name. Category 3 - Deposits which are uncollateralized. Investments: Category 1 - Investments which are insured or registered, or where the securities are held by the City or the City's agent in the City's name. Category 2 - Investments which are uninsured and unregistered with securities held by the purchasing financial institution's trust department or agent in the - City's name. Category 3 - Investments which are uninsured and unregistered, with the securities held by the purchasing financial institution's trust department or agent, but not in the City's name. Investments Not Subiect to Categorization: Investments in the California Local Agency Investment Fund (LAIF) and the Los Angeles County Pooled Investment Fund are not categorized, as GASB Statement 3 does not require categorization of investment pools managed by another government. Also, investments of the Deferred Compensation Plans and investments held by fiscal agents are not categorized because the underlying assets of these investments consist primarily of guaranteed investment contracts issued by insurance companies (GIC's), annuity contracts or open-ended mutual funds. All such investments are not required to be categorized under interpretive guidelines issued by the GASB. 23 CITY OF SANTA CLAR]TA Notes to Financial Statements (Continued) June 30, 1997 The City's deposits and investments were categorized as follows at June 30, 1997: Category Carrying 1 2 3 Amount Deposits Pooled Deposits Demand Accounts: $ 58,945"' $ 58,945"' Bank balances $230,341 $870,458 $1,100,799 Deposits in transit 17,993,276"' 95,508 Outstanding checks $4,864,925 4,864,925 (1,499,303) Book balance 230,341 870,548 (302,996) Total Deposits 3,651,221 S87DJ48 3,634,507 United States Treasury Notes 2,886,846 2,886,846 Contractual/ Federal Home Loan Bank 2,968,482 Category Carrying Market Commercial paper 1 2 3 Amount Value Investments: Los Angeles County Pooled Investment Fund $ 58,945"' $ 58,945"' California Local Agency Investment Fund 17,993,276"' 17,993,276(2) United States Treasury Bills $4,864,925 4,864,925 4,865,684 Federal National Mortgage Association 3,651,221 3,651,221 3,634,507 United States Treasury Notes 2,886,846 2,886,846 2,882,266 Federal Home Loan Bank 2,968,482 2,968,482 2,954,282 Commercial paper 1,517,872 1,517,872 1,518,130 Bankers acceptances 2,066,477 2,066,477 2,054,036 Total Investments 17,955,823 36,008,044 35,961,126 24 CH Y OF SANTA CLARITA Notes to Financial Statements (Continued) June 30,1997 Contractual/ Category Carrying Market 1 2 3 Amount Value Investments Held By Fiscal Agents: Mutual Funds 3,885,212(1) 31885,212 Deferred Compensation 4.453.517(1) 4.453.517 Total Investments With Fiscal Agents 8338.729 8.338.729 Total Investments $17955.823 S_ $44.346.773 $44299.855 1 Not subject to categorization. (2) The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has indicated to the City that as of June 30, 1997 the carrying amount of the pool was $28,515,398,747 and the estimated market value of the pool (including accrued interest) was $28,637,448;331. The City's proportionate share of that value is $18,070,286. Included in 6&s investment portfolio are certain derivative securities or similar products in the form of structured notes totaling $740,750,000 and asset-backed securities totaling $406,649,000. LAIF's (and the City's) exposure to risk (credit, market, or legal) is not currently available. (3) At June 30, 1997, market value for the Los Angeles County .Investment Pool (LACIP) was $6,408,288,032 compared to principal cost of $6,410,083,799. The City's proportionate share of the market value was $58,928. Included in the LACIP's investment portfolio are certain derivative securities in the form of asset- backed securities and floating rate notes, representing approximately 4.8% of the LACIP total investment portfolio. Information regarding LACIP's (and the City's) exposure to credit, market or legal risk is currently not available. Total cash and investments at June 30, 1997 consisted of the following: Cash and investments (including petty cash $2,121) Cash and investments held by fiscal agents Total Cash and Investments 25 $35,707,169 8.338,729 $44.045.898 3 CITY OF SANTA CLARTTA Notes to Financial Statements (Continued) June 30, 1997 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. PROPERTY, PLANT AND EQUIPMENT Changes in General Fixed Assets for the year ended June 30, 1997 are as follows: Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 Land and improvements $29,300,124 $ 26,069 $29,326,193 Buildings 13,640,104 190,180 13,830,284 Equipment 6,247.091 557,392 6.804,483 Equipment acquired Totals $49187.319 773 641 �_ $49.960.960 Changes in the proprietary fund property, plant and equipment for the year ended June 30, 1997 are as follows: Internal Service Fund Equipment $195,84828$ 4.875 $ $480,723 Less: Accumulated depreciation (90,454) Net Assets 195 848 3 0 269 M. Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 Enterprise Fund Equipment acquired by capital lease $6,162,479 $6,162,479 Equipment purchased 318,232 $ 54,517 372,749 Buildings 4,208,955 537,375 4,746,330 Land 1,743,027 1,743,027 Less: Accumulated 12,432,693591 892 13,024,585 depreciation (2,966,692 (3,658,62 Net Assets 9 466 00 9 365 963 Internal Service Fund Equipment $195,84828$ 4.875 $ $480,723 Less: Accumulated depreciation (90,454) Net Assets 195 848 3 0 269 M. .1 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 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, 1997: Financing Authority Revenue Bonds - Series 1991 Notes payable Lease payable Advances to other funds Compensated absences Totals Balance at Balance at July 1, 1996 Additions Deletions June 30, 1997 $19,715,000 $ 915,000 $18,800,000 3,278,698 175,822 3,102,876 $107,381 11,553 95,828 1,612,248 386,057 1,998,305 482.038 65.884 547.922 25.087.984 559 3 1 102 375 24.544931 a. Financing Authority Revenue Bonds — Series 1991: On October 1, 1991 the. Santa Clarita Public Financing Authority issued $22,940,000 of Revenue Bonds — Series 1991. The Authority, simultaneously with the receipt of the Bond proceeds, acquired $22,940,000 of Certificates of Participation issued by the Santa 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 1 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 27 CITY OF SANTA CLARiTA Notes to Financial Statements (Continued) June 30, 1997 amounts ranging from $145,000 to $905,000, at a price equal to the principal amount plus accrued interest to the redemption date. In addition, the bonds are subject to mandatory redemption under various other circumstances as described in the official statement dated October 1; 1993. Future debt service requirements on the bonds are as follows: Year Ending June 30, 1998 1999 2000 2001 2002 Thereafter b. Notes Payable: Principal Interest $ 320,000 345,000 365,000 390,000 415,000 16,965,000 $ 1,264,760 1,244,970 1,222,835 1,198,340 1,171,980 13.761,335 $19.864220 Total $ 1,584,760 1,589,970 1,587,835 1,588,340 1,586,980 30,726,335 38.664.220 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 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. Sales tax generated has been less than current interest due during certain periods. Therefore, the City has added unpaid. accrued interest payable to the outstanding principal balance of the note. At June 30, 1997, the balance outstanding of $2,925,149 on the note included $2,557,436 in original loan proceeds and $367,713 of accrued interest. 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, 1997, the unpaid principal balance was $177,727. CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 C. Lease Payable In August 1996, the City entered into a lease with an option to purchase agreement in the amount of $107,381 for the lease of property through Municipal Leasing • Associates, Inc. Such agreement carnes interest at the rate of 5.38% per annum on the unpaid principal balance, payable semi-annually from January 30, 1997 through July • 30, 2000. • Future lease payment requirements are as follows: Year Ending June 30, Princioal Interest Total 1998 $24,501 $ 4,836 $ 29,337 1999 26,755 3,488 30,243 2000 29,161 2,017 31,178 2001 15.411 415 15,82 95 828 ] 0 756 ] 0 584 d. Advances from Other Funds: The Agency has received advances totaling $1,998,305, which includes $1,736,778 of principal and $261,527 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 $237,017 are recorded as "Other Financing Sources" in the Agency's Capital Projects Fund and interest for fiscal year 1996-97 of $149,040 in the Agency's Debt Service Fund. Since the debt will be repaid from future tax increments as it becomes available, the debt from the Agency to the General Fund has been recorded in the General Long -Term Debt Account Group. 5. DEFERRED REVENUE At June 30, 1997, deferred revenue consisted of the following: a. The City collects funds in advance as reimbursement for costs of providing recreation classes to the public. At June 30, 1997, $391,246 in fees collected in advance for providing recreation classes were recorded as deferred revenue in the General Fund to reflect fees not earned. • b. In the General Fund, accrued interest receivable of $261,527 added to the Advances to • the Redevelopment Agency has been recorded as deferred revenue since the accrued • interest is not considered a resource to finance current expenditures. 29 • CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 C. Other deferred revenue in the General Fund consisted of $478,974 in advances received for construction projects for which the related expenditures had not been incurred and $12,377 of miscellaneous fees collected in advance. d. The City collects funds in advance from developers and receives grants to provide funds for construction of related projects. At June 30, 1997, $832,004 in the Bikeway Special Revenue Fund, $1,840,588 in the Developer Fees Special Revenue Fund, and $30,946 in the Sewer Maintenance Special Revenue Fund related to grant and developer receipts. All were recorded as deferred revenue since the related expenditures for the construction projects had not been incurred. e. Loans receivable of $236,000 funded by grant funds have been offset by deferred revenue in the CDBG special revenue fund. 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, 1997, the City has incurred $18,482,622 in expenditures related to the grant funds. $1,313,288 of these expenditures has not been reimbursed as of year end. The City has recorded a liability for Due to Other Governments in the amount of $9,525,540 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 the Metropolitan Transit Authority (MTA). As of June 30, 1997, the balance payable to the MTA was $141,449 in the Proposition C Special Revenue Fund and $18,924 in the 1991 Revenue Bonds Capital Projects Fund. 7. PROPRIETARY FUND TYPE OF 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, 1997: Balance at Balance at July 1. 1996 Additions Deletions June 30. 1997 Transit Enterprise Fund: Master lease obligations $1,250,526 Lease payable 3,610,000 Notes payable 1.677,769 6,538,295 Less: Lease Discount (17,926 Total Transit Enterprise Fund Long -Term Debt 6 520 369 30 $ 218,271 $1,032,255 365,000 3,245,000 1.177,769 500.000 1,761,040 4,777,255 (3,709) 14 21 7) �_ 1 75 331 4 763 03 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 Balance at Balance at July 1, 1996 Additions Deletions June 30 1997 Internal Service Fund: Computer Replacement Fund: Lease payable 195 848 S256 42 16$ 6.634 285 639 a. Master Lease Obligations: 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 carnes 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. Future lease payments under such. obligations are as follows: Year Ending June 30- Principal Interest Total 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 1 032 255 161 588 1 193 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, Principal Interest Total 1998 $ 385,000 $190,598 $ 575,598 1999 410,000 166,940 576,940 2000 435,000 141,373 576,373 2001 460,000 113,845 573,845 31 C. 9 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 Year Ending June 30 Principal Interest Total 2002 485,000 84,308 569,308 Thereafter 1.070,000 70,265 1,140265 3 245 000 767 329 4 0 2 329 Note Payable: 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 1998 $500,000 $30,818 $530,818 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 through Municipal Leasing Associates, Inc. As of June 30, 1997, the City had received $452,273 in proceeds from the capital lease which was used to acquire computer equipment. The remaining proceeds will be received in fiscal year 1997-98. Interest, at 4.9%, and principal are payable semi-annually from November 9, 1996 through May 9, 1999. Future lease payment requirements for the lease, assuming all proceeds have been received, are as follows: Year Ending June 30 Principal Interest Total 1998 $174,864 $15,381 $190,245 1999 183,502 6,743 190,245 35� 22 124 380 490 32 CITY OF SANTA CLARTTA Notes to Financial Statements (Continued) June 30, 1997 8. INTERFUND BALANCES: Interfund receivable and payable balances as of June 30, 1997 are as follows: Fund Due From Due To General Fund $5,135,646 Special Revenue Funds: Proposition A - Transportation $1,388,867 State Park Fund 944,654 Traffic safety 20,462 Community Development Block Grant (CDBG) 685,900 Federal Aid Urban (FAU) 382,715 Earthquake Fund 18,798 Economic Development Administration 700,172 Miscellaneous Grants Fund 9,889 OCJP Grant Fund 100,644 Transit Enterprise Fund 883.545 $5,135,646 5 135 646 • 9. DEFINED BENEFIT PENSION PLAN . 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, 1997 was $9,768,844. The total payroll for the year was $11,109,282. 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 amount 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 amount. The employee contribution rate is set by statute. The present member rate is 7% of wages. 33 CITY OF SANTA CLAR1TA Notes to Financial Statements (Continued) June 30, 1997 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. 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 (the most recent information available), as listed below. Pension benefit obligation: Retirees 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. 34 CrfY OF SANTA CLAR1TA Notes to Financial Statements (Continued) June 30,1997 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 significant actuarial assumptions used to compute . the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. A contribution of $1,371,149 for normal costs was made to the system for 1997 in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1995. The City contributed employer contributions of $662,400 (7.2% of current covered payroll) and on behalf of employees contributed $648,062 (6.7% of current covered payroll). An additional $60,687 was contributed by the employees (.58% of current covered payroll). Trend Information: Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information for the City of Santa Clarita is not published in the California Public Employees Retirement System Annual Report. The City entered the System in fiscal year 1988-89. Therefore, the trend information from 1988-1989 through 1994-95 and employer contributions and covered payroll for 1988-1989 through 1996-97 is summarized as follows: 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Net Assets Available for Benefits (In Thousands) $23 $445 $1,059 $1,895 $3,003 $4,689 $6,382 Pension Benefit Obligation (In Thousands) 41 323 853 1,591 2,759 3,579 5,132 35 CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30,1997 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95' 1995-96 1996-97 Net Assets Available for Benefits Expressed as a Percentage of the Pension Benefit Obligation 57.0% Assets in Excess of Pension (Unfunded) Benefit Obligation (In Thousands) (18) Annual Covered Payroll (In Thousands) 1,008 Assets in Excess of (Unfunded) Pension Benefit Obligation, Expressed as a Percentage of Annual Covered Payroll (1.71/o) Employer Contributions (In Thousands) 117 Employer Contributions Expressed as a Percentage of Annual Covered Payroll. These contributions were made in accordance with actuarially determined requirements. 11.6% 137.8% 124.2% 119.1% 108.8% 131.0% 124.4% 122 206 304 244 1,110 1,250 2,963 5,515 7,609 7,245 7,409 8,311 4.1% 3.7% 4.0% 3.36% 15.0% 15.0% 321 291 391 413 407 602 10.9% 5.3% 5.1% 5.7% 5.5% 7.2% *Information at June 30, 1997 was not available. 10. DEFERRED COMPENSATION PLAN 8,852 9,769 641 662 7.2% 6.8% 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. 36 • • • CITY OF SANTA CLARITA Notes to Financial Statements (Continued) • June 30, 1997 • The City has established an additional plan for City management under Internal Revenue • Service Code Section 401(a). City participation in contributions to 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. The assets of the Section 457 plan are held in trust with the City serving as trustee, for the exclusive benefit of - the participants. 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 $4,453,517 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, 1997 are. as • follows: • • Special Revenue Funds: • Bikeway $ 48,466 Developer Fees 360,493 • State Park 956,507 • CDBG 973 Earthquake 1,963,268 . • Economic Development Administration 5,101 Miscellaneous Grants 72448 • Capital Projects Fund — Redevelopment Agency 92,311 Internal Service Fund — Self -Insurance 923,385 The Ci plans to remove the deficit in the Special Revenue Funds • City p p through operating transfers from the General Fund, developer fees and additional grant revenue from • other governmental agencies. The deficit in the Redevelopment Agency will be covered by future advances from the General Fund. 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. • • I• • 37 • CITY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 12. SELF-INSURANCE The City is self-insured for the first $250,000 on each generalliability claim against the City. At June 30, 1997 $998,423 .was accrued for general liability claims. This accrual represents 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, 1997 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 $10,000,000. 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, 1997. Changes in the reported liability since June 30, 1995, resulted in the following: 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 Claims and changes in estimates during the year ended June 30, 1997 Claims payments during the year ended June 30, 1997 Liability as of June 30, 1997 13. RESERVES AND DESIGNATIONS OF FUND EQUITY $ 997,972 111,113 (586,355 522,730 1,016,126 (540,433 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, 1997, are -tabulated below, followed by explanations as to the nature and purpose of each reserve and designation. M MY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30, 1997 Reserves: Continuing appropriations Encumbrances Advances to other funds Prepaid items Debt service TOTAL RESERVES Designations: Self-insurance Earthquake Special revenue purposes Capital improvements Contingencies TOTAL DESIGNATIONS Special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Fund $1,606,313 $ 480,504 $ 170,965 2,098,130 5,202,437 1,242,760 1,998,306 61,163 14,790 $1,687M8 489 500 $5.763"912 5 697 731 1 687 948 4 3 7 489 500 $ 923,385 1,968,369 $16,869,443 7.269.976 $ 949,433 0 161 730 6 869 443 $ S a. Reserved for Continuing Appropriations — Appropriations for capital projects and other expenditures which are unexpended as of June 30, 1997 will cant' forward as continuing appropriations to be expended in 1997-98. 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 established to reflect the advances to the Redevelopment Agency so that they will not be considered as current funds available. e. f. 9. 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. Reserved for Debt Service - These reserves represent amounts accumulated in accordance with a bond indenture or similar covenant. Designated for Self-insurance — This designation is for the deficit retained earnings in the Internal Service Fund for Self-insurance. Designated for Earthquake — This amount has been designated to fund the deficit fund balance in the Special Revenue Earthquake Fund. Designated for Special Revenue Purposes — These funds are designated for the specific special revenue purpose as restricted by law or administrative action. Rid CTTY OF SANTA CLARITA Notes to Financial Statements (Continued) June 30,1997 Designated for Capital Improvements — These funds are designated to provide for new capital additions as determined by the City Council. j. Designated for Contingencies — The remainder of the unreserved fund balance in the General Fund has been designated for general contingencies. 14. SEGMENT INFORMATION Net working capital deficit of the Transit Enterprise System at June 30, 1997 was as follows: Current assets $ 1,105,153 Current liabilities payable from current assets (2,898,480) Net working capital (deficit) SaIL3.327) 15. 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 1996-97 there were three eligible participants, for which the City paid $1,676 for medical insurance premiums. 16. CONTRIBUTED CAPITAL Changes in the Transit Enterprise Fund's contributed capital were as follows: Balance June 30,1996 $1,622,071 Grants restricted for capital outlay 728,410 Current depreciation on contributed assets (123,832) Balance June 30, 1997 2 226 64 17. SUBSEQUENTEVENT In August, 1997, the City issued $19,670,000 refunding certificates of participation with interest rates of 4.5% to 5.0% and maturity dates from October 1, 2001-2021 for the purpose of refinancing outstanding obligations related to the 1991 Lease Agreement and the 1991 Financing Authority Revenue Bonds (See Note 4a). !1 SUPPLEMENTARY INFORMATION The General Fund is the general operating fund of the City. All general tax revenues and other receipts not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include general operating costs not paid through other funds. CITY OF SANTA CLARITA General Fund - Comparative Balance Sheets June 30, 1997 and 1996 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 revenue 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 Total Fund Balance Total Liabilities and Fund Balances 42 1997 $ 8,000,732 3,145,332 129,509 5,135,646 554,933 61,163 1,998,306 $ 19,025,621 $ 1,944,205 1,143,524 12,250 ..; $ 6,961,514 2,915,918 104,018 3,177,642 492,414 37,298 1,612,248 $ 15,301,052 $ 2,111,731 651,218 44,030 3,099,979 2,806,979 1,606,313 2,098,130 1,998,306 61,163 923,385 1,968,369 7,269,976 379,131 2,169,989 1,612,248 125,902 37,298 544,490 4,344,081 3,280,934 15,925,642 12,494,073 $ 19,025,621 $ 15,301,052 CITY OF SANTA CLARITIA General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 1997 With Comparative Totals for the Year Ended June 30, 1996 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 (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds from long-term debt Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance - Beginning of Year Fund Balance - End of Year Budget $ 22,960,095 1,564,415 793,295 5,364,013 102,465 2,400,135 96,200 33,280,618 11,653,074 10,295,684 836,675 7,833,991 6,261,721 701,439 37,582,584 1997 Variance Favorable Actual (Unfavorable) 1996 Actual $ 23,230,334 $ 270,239 $ 22,706,122 1,513,469 (50,946) 1,749,220 947,136 153,841 1,060,362 6,154,122 790,109 6,428,731 152,506 50,041 131,635 2,725,039 324,904 1,630,350 408,767 312,567 637,476 35,131,373 1,850,755 34,343,896 6,797,943 4,855,131 6,213,054 10,163,153 132,531 9,754,629 747,618 89,057 1,174,295 7,166,622 667,369 7,065,890 5,253,205 1,008,516 4,547,573 129,059 572,380 836,947 30,257,600 7,324,984 29,592,388 (4,301,966) 4,873,773 9,175,739 4,751,508 107,381 107,381 718,940 598,692 (120,248) 2,263,783 (171,924) (2,148,277) (1,976,353) (2,840,447) 654,397 (1,442,204) (2,096,601) (576,664) (3,647,569) 3,431,569 12,494,073 12,494,073 $ 8,846,504 $ 15,925,642 43 7,079,138 4,174,844 8,319,229 $ 7,079,138 $ 12,494,073 SPECIAL REVENUE FUNDS The Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes. Funds included are: Bikeway — To account for monies received from the State of California restricted for bicycle and pedestrian facilities available under Article 3 of Transportation Development Act (SB821). Bridge and Thoroughfare — To account for monies received from developers for street and highway construction through bridge and thoroughfare districts. Developer Fees — To account for monies received from developers for street improvements. Gas Tax — To account for monies received and expended from the state and county gas tax allocation restricted to fund various street 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. Snecial Assessment — To account for monies received for small 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) AOMD (Air Quality Management District) — To account for revenues and expenditures for Air Quality Management. Aid to Cities — To account for receipts and disbursements associated with County Aid to cities grant. Earthquake — To account for receipts and disbursements associated with reconstruction projects as a result of the 1994 Northridge earthquake. Landscape Maintenance District 41 — To account for receipts and disbursements for a landscape district. Stormwater Utility — To account for receipts and disbursements for stormwater and run-off programs. Economic Development Administration — To account for receipts and disbursements for the EDA grant. Miscellaneous Grants — To account for receipts and disbursements for miscellaneous grants. Sewer Maintenance — To account for monies received from developers as sewer frontage fees to be used to fund sewer maintenance projects. OCJP Grant — To account for receipts and disbursements for the OCJP grant. BJA Law Enforcement — To account for receipts and disbursements for the BJA law enforcement grant. Supplemental Law Grant — To account for receipts and disbursements for the supplemental law grant. CITY OF SANTA CLARITA Combining Balance Sheet - Special Revenue Funds June 30, 1997 Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ 12,482 $ 120,618 $ 370,997 Deferred revenue 832,004 1,840,588 Due to other governments Due to other funds Total Liabilities 844,486 1,961,206 370,997 Fund Balances (Deficits): Reserved for encumbrances 594,626 144,763 946,368 334,336 Reserved for continuing appropriations 12,720 139,241 Reserved for prepaid items Unreserved: Designated for special revenue purposes 8,624,593 1,545,178 Undesignated (643,092) (1,306,861) Total Fund Balances (Deficits) (48,466) 8,782,076 (360,493) 2,018,755 Total Liabilities and Fund Balances $ 796,020 $ 8,782,076 $ 1,600,713 $ 2,389,752 Q Bridge and Developer Assets Bikeway Thoroughfare Fees Gas Tax Cash and investments $ 456,953 $ 8,714,027 $ 1,405,536 $ 2,140,499 Accounts receivable 335,163 143,033 232,545 Interest receivable 3,904 68,049 10,962 16,708 Due from other governments 41,182 Prepaid items Loans receivable Advances to other funds Total Assets $ 796,020 $ 8,782,076 $ 1,600,713 $ 2,389,752 Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ 12,482 $ 120,618 $ 370,997 Deferred revenue 832,004 1,840,588 Due to other governments Due to other funds Total Liabilities 844,486 1,961,206 370,997 Fund Balances (Deficits): Reserved for encumbrances 594,626 144,763 946,368 334,336 Reserved for continuing appropriations 12,720 139,241 Reserved for prepaid items Unreserved: Designated for special revenue purposes 8,624,593 1,545,178 Undesignated (643,092) (1,306,861) Total Fund Balances (Deficits) (48,466) 8,782,076 (360,493) 2,018,755 Total Liabilities and Fund Balances $ 796,020 $ 8,782,076 $ 1,600,713 $ 2,389,752 Q Park Proposition Special Improvement A Assessment $ 508,698 $ 355,041 1,791 3,968 3,060 $ 1,589,780 State Park TDA $ 1,126,843 10,680 240,860 Traffic Safety $ 26,111 $ 512,666 $ 1,589,780 $ 359,892 $ - $ 1,378,383 $ 26,111 $ 5,135 $ 2,682 $ 11,853 $ 72,213 1,388,867 944,654 $ 20,462 1,394,002 2,682 956,507 72,213 20,462 27,509 463,490 625,523 80,110 195,073 $ 512,666 195,778 329,701 485,574 5,649 (1,500,107) 512,666 195,778 357,210 (956,507) 1,306,170 5,649 $ 512,666 $ 1,589,780 $ 359,892 $ - $ 1,378,383 $ 26,111 47 (Continued) CITY OF SANTA CLARITA Combining Balance Sheet - Special Revenue Funds (Continued) June 30, 1997 Assets Cash and investments Accounts receivable Interest receivable Due from other governments Prepaid items Loans receivable Advances to other funds Total Assets Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities Deferred revenue 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 CDBG $ 748,072 13,200 236,000 Proposition FAU C AQMD $ 2,476,270 $ 253,716 37,758 19,331 1,967 $ 881,223 1,085,935 $ 997,272 $ 881,223 $ 3,581,536 $ 293,441 $ 76,345 $ 52,244 $ 76,536 $ 187 236,000 141,449 685,900 382,715 998,245 434,959 217,985 187 650,138 216,013 627,524 53,575 785 13,200 229,466 2,736,027 239,679 (664,311) (973) 446,264 3,363,551 293,254 $ 997,272 $ 881,223 $ 3,581,536 $ 293,441 G1:3 61,470 $ 83,166 $ 7,583,631 $ 1,101,857 $ 1,120,525 $ 894,127 $ 5,559 $ 2,561 $ 11,875 $ 68,154 $ 199,056 $ 3,118 9,525,540 18,798 700,172 9,889 9,546,899 11,875 68,154 899,228 13,007 33,758 480,915 3,074 52,575 1,590 $ 83,166 1,056,224 517,291 (1,963,268) (5,101) (10,522) 83,166 (1,963,268) 1,089,982 1,052,371 (5,101) (7,448) $ 83,166 $ 7,583,631 $ 1,101,857 $ 1,120,525 $ 894,127 $ 5,559 49 (Continued) Landscape Economic Aid to Maintenance Stormwater Development Miscellaneous Cities Earthquake District #1 Utility Administration Grants $ 82,510 $ 6,160,780 $ 218,435 $ 1,034,903 6,704 75,943 656 48,093 1,718 8,089 1,313,288 875,000 $ 894,127 $ 5,559 1,590 61,470 $ 83,166 $ 7,583,631 $ 1,101,857 $ 1,120,525 $ 894,127 $ 5,559 $ 2,561 $ 11,875 $ 68,154 $ 199,056 $ 3,118 9,525,540 18,798 700,172 9,889 9,546,899 11,875 68,154 899,228 13,007 33,758 480,915 3,074 52,575 1,590 $ 83,166 1,056,224 517,291 (1,963,268) (5,101) (10,522) 83,166 (1,963,268) 1,089,982 1,052,371 (5,101) (7,448) $ 83,166 $ 7,583,631 $ 1,101,857 $ 1,120,525 $ 894,127 $ 5,559 49 (Continued) CITY OF SANTA CLARITA Combining Balance Sheet - Special Revenue Funds (Continued) June 30, 1997 Assets Cash and investments Accounts receivable Interest receivable Due from other governments Prepaid items Loans receivable Advances to other funds Total Assets Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities Deferred revenue 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 Sewer OCJP BJA Law Supplemental Maintenance Grant Enforcement Law Grant $ 32,095 $ 162,978 $ 180,002 250 $ 128,992 1;280 1,405 $ 32,345 $ 128,992 $ 164,258 $ 181,407 $ 28,348 $ 1,953 $ 35,835 $ 30,946 100,644 30,946 128,992 1,953 35,835 1,399 825 162,305 144,747 Total Fund Balances (Deficits) 1,399 162,305 145,572 Total Liabilities and Fund Balances $ 32,345 $ 128,992 $ 164,258 $ 181,407 50 Totals 1997 1996 $ 25,309,286 $ 19,031,478 859,048 1,082,912 200,120 162,124 7,804,018 4,236,883 14,790 12,560 236,000 61,470 $ 34,484,732 $ -24,525,957 $ 1,152,192 $ 1,163,047 2,939,538 2,246,526 9,666,989 11,133,946 4,252,101 1,843,533 18, 010, 820 16,387,052 5,202,437 2,732,064 480,504 676,729 14,790 12,560 16,869,443 10,709,236 (6,093,262) (5,991,684) 16,473,912 8,138,905 $ 34,484,732 $ 24,525,957 51 CITY OF SANTA CLARITA Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds For the Year Ended June 30, 1997 With Comparative Totals for the Year Ended June 30, 1996 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 safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficit) - Beginning of Year Fund Balances (Deficit) - End of Year 52 Bridge and Developer Bikeway Thoroughfare Fees $ 32,583 $ 1,918,096 $ 264,252 22,129 376,271 56,372 44,778 302,648 1,042 100,532 2,294,367 623,272 75,062 8,374 525,718 75,062 8,374 525,718 25,470 2,285,993 97,554 25,470 2,285,993 97,554 (73,936) 6,496,083 (458,047) $ (48,466) $ 8,782,076 $ (360,493) Park Proposition Special State Gas Tax Improvement A Assessment Park TDA $ 92,443 $ 20,659 $ 24,524 $ 13,561 107,915 2,593,323 140,643 2,844,657 $ 2,050 $ 3,044,353 160,001 21,556 2,707,322 161,302 2,869,181 173,562 2,050 3,152,268 2,167,733 39,531 146,404 103,149 196,124 809,486 2,314,137 103,149 39,531 196,124 809,486 393,185 161,302 2,766,032 134,031 (194,074) 2,342,782 74,619 (108,963) (2,734,685) (8,500) (2,892,371) (34,344) (2,734,685) (8,500) (2,892,371) 358,841• 161,302 31,347 125,531 (194,074) (549,589) 1,659,914 351,364 164,431 231,679 (762,433) 1,855,759 $ 2,018,755 $ 512,666 $ 195,778 $ 357,210 $ (956,507) $ 1,306,170 (Continued) 53 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, 1997 With Comparative Totals for the Year Ended June 30, 1996 Revenues: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue Total Revenues Expenditures: Current Operating: General government Public safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficit) - Beginning of Year Fund Balances (Deficit) - End of Year 54 Traffic Safety CDBG FAU $ 6,308 $ 2,874,602 $ 1,116,531 301,485 23,094 307,793 2,897,696 1,116,531 1,249,833 1,648,836 333,424 2,898,669 333,424 307,793 (973) 783,107 (307,434) (307,434) 359 (973) 783,107 5,290 (336,843) $ 5,649 $ (973) $ 446,264 Landscape Proposition Aid to Maintenance Stormwater C AQMD Cities Earthquake District #1 Utility $ 121,897 $ 9,575 $ 4,059 $ 276,787 $ 9,438 $ 42,104 3,223,812 136,245 2,294,237 1,076,104 1,847,538 44,962 295 3,345,709 145,820 4,059 2,615,986 1,085,542 1,889,937 34,900 1,537,886 1,287,514 235,173 44,843 1,287,514 34,900 235,173 44,843 1,537,886 2,058,195 110,920 4,059 2,380,813 1,040,699 352,051 (839,289) (839,289) (197,820) (197,820) 1,218,906 110,920 4,059 2,380,813 1,040,699 154,231 2,144,645 182,334 79,107 (4,344,081) 49,283 898,140 $ 3,363,551 $ 293,254 $ 83,166 $ (1,963,268) $ 1,089,982 $ 1,052,371 (Continued) 55 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, 1997 With Comparative Totals for the Year Ended June 30, 1996 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 safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficit) - Beginning of Year Fund Balances (Deficit) - End of Year 56 Economic Development Miscellaneous Sewer Administration Grants Maintenance $ 1,379 $ 1,399 $ 2,448,840 5,617 2,448,840 6,996 1,399 2,453,941 10,660 2,453,941 10,660 (5,101) (3,664) 1,399 (5,101) (3,664) 1,399 (3,784) $ (5,101) $ (7,448) $ 1,399 OCJP BJA Law Supplemental Grant Enforcement Law Grant Totals 1997 1996 $ 2,214,931 $ 3,746,441 $ 76 $ 5,304 $ 10,568 1,202,768 939,821 230,176 167,632 302,182 21,772,326 13,613,099 301,485 313,775 3,083,643 2,038,494 90,949 405,621 230,252 172,936 312,750 28,666,102 21,057,251 230,252 265,152 14,345 167,178 167,178 2,167,733 1,977,556 10,631 2,837,881 2,085,595 7,878,708 11,568,280 230,252 10,631 167,178 13,316,652 15,645,776 162,305 145,572 15,349,450 5,411,475 74,619 84,892 (7,089,062) (6,563,655) (7,014,443) (6,478,763) 162,305 145,572 8,335,007 (1,067,288) 8,138,905 9,206,193 $ $ 162,305 $ 145,572 $ 16,473,912 $ 8,138,905 57 CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds For the Year Ended June 30, 1997 Revenues: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue Total Revenues Expenditures: Current Operating: General government Public safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year W: Bikeway Variance Favorable Budget Actual (Unfavorable) $ 292,886 $ 32,583 $ (260,303) 22,129 22,129 50,000 44,778 (5,222) 1,042 1,042 342,886 100,532 (242,354) 661,700 75,062 586,638 661,700 75,062 586,638 (318,814) 25,470 344,284 (318,814) 25,470 344,284 (73,936) (73,936) $ (392,750) $ (48,466) $ 344,284 Bridge and Thoroughfare Variance Favorable Budget Actual (Unfavorable) $ 635,000 $ 1,918,096 $ 1,283,096 376,271 376,271 635,000 2,294,367 1,659,367 400,000 8,374 391,626 400,000 8,374 391,626 235,000 2,285,993 2,050,993 235,000 2,285,993 2,050,993 6,496,083 6,496,083 $ 6,731,083 $ 8,782,076 $ 2,050,993 59 Developer Fees Variance Favorable Budget Actual (Unfavorable) $ 585,000 $ 264,252 $ (320,748) 56,372 56,372 84,540 302,648 218,108 669,540 623,272 (46,268) 2,312,723 525,718 1,787,005 2,312,723 525,718 1,787,005 (1,643,183) 97,554 1,740,737 (1,643,183) 97,554 1,740,737 (458,047) (458,047) $ (2,101,230) $ (360,493) $ 1,740,737 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue Total Revenues Expenditures: Current Operating: General government Public safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Gas Tax Variance Favorable Budget Actual (Unfavorable) $ 10,000 $ 92,443 $ 82,443 2,629,465 2,593,323 (36,142) 23,500 21,556 (1,944) 2,662,965 2,707,322 44,357 2,985,188 2,167,733 817,455 401,800 146,404 255,396 3,386,988 2,314,137 1,072,851 (724,023) 393,185 1,117,208 44,020 74,619 30,599 (113,445) (108,963) 4,482 Total Other Financing Sources (Uses) (69,425) (34,344) 35,081 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year (793,448) 358,841 1,152,289 1,659,914 1,659,914 $ 866,466 $ 2,018,755 $ 1,152,289 Park Improvement Variance Favorable Budget Actual (Unfavorable) $ 2,000 $ . 20,659 $ 18,659 140,643 140,643 2,000 161,302 159,302 2,000 161,302 159,302 2,000 161,302 159,302 351,364 351,364 $ 353,364 $ 512,666 $ 159,302 Proposition A Variance Favorable Budget Actual (Unfavorable) $ 24,524 $ 24,524 $ 5,498,777 2,844,657 (2,654,120) 5,498,777 2,869,181 (2,629,596) 503,424 103,149 400,275 503,424 103,149 400,275 4,995,353 2,766,032 (2,229,321) (2,136,269) (2,734,685) (598,416) (2,136,269) (2,734,685) (598,416) 2,859,084 31,347 (2,827,737) 164,431 164,431 $ 3,023,515 $ 195,778 $ (2,827,737) 61 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 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 safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year 62 Special Assessment Variance Favorable Budget Actual (Unfavorable) $ 13,561 $ 13,561 $ 102,150 160,001 57,851 102,150 173,562 71,412 121,369 39,531 81,838 121,369 39,531 81,838 (19,219) 134,031 153,250 (8,500) (8,500) (8,500) (8,500) (27,719) 125,531 153,250 231,679 2315679 $ 203;960 $ 357,210 $ 153,250 State Park Variance Favorable Budget Actual (Unfavorable) $ 2,680,452 $ 2,050 $ (2,678,402) TDA Variance Favorable Budget Actual (Unfavorable) $ 107,915 $ 107;915 $ 2,805,900 3,044,353 238,453 2,680,452 2,050 (2,678,402) 2,805,900 3,152,268 346,368 3,051,156 196,124 2,855,032 3,051,156 196,124 2,855,032 (370,704) (194,074) 176,630 (370,704) (194,074) 176,630 (762,433) (762,433) $ (1,133,137) $ (956,507) $ 176,630 63 1,835,773 809,486 1,026,287 1,835,773 809,486 1,026,287 970,127 2,342,782 1,372,655 (2,737,550) (2,892,371) (154,821) (2,737,550) (2,892,371) (154,821) L (1,767,423) (549,589) 1,217,834 1,855,759 1,855,759 $ 88,336 $ 1,306,170 $ 1,217,834 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 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 safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing. Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year U Traffic Safety Variance Favorable Budget Actual (Unfavorable) $ 3,000 $ 6,308 $ 3,308 265,700 301,485 35,785 268,700 307,793 39,093 268,700 307,793 39,093 (265,700) (307,434) (41,734) (265,700) (307,434) (41,734) 3,000 359 (2,641) 5,290 5,290 $ 8,290 $ 5,649 $ (2,641) CDBG Variance Favorable Budget Actual (Unfavorable) $ 11,123,906 $ 2,874,602 $ (8,249,304) 23,094 23,094 11,123,906 2,897,696 (8,226,210) FAU Variance Favorable Budget Actual (Unfavorable) $ 1,623,812 $ 1,116,531 $ (507,281) 1,623,812 1,116,531 (507,281) 3,954,174 1,249,833 2,704,341 6,357,087 1,648,836 4,708,251 1,630,151 333,424 1,296,727 10,311,261 2,898,669 7,412,592 1,630,151 333,424 1,296,727 812,645 (973) (813,618) (6,339) 783,107 789,446 812,645 (973) (813,618) (6,339) 783,107 789,446 (336,843) (336,843) $ 812,645 $ (973) $ (813,618) $ (343,182) $ 446,264 $ 789,446 (Continued) M CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue Total Revenues Expenditures: Current Operating: General government Public safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year .P Proposition C Variance Favorable Budget Actual (Unfavorable) $ 121,897 $ 121,897 $ 3,059,011 3,223,812 164,801 3,059,011 3,345,709 286,698 4,400,802 1,287,514 3,113,288 4,400,802 1,287,514 3,113,288 (1,341,791) 2,058,195 3,399;986 (1,239,022) (839,289) 399,733 (1,239,022) (839,289) 399,733 (2,580,813) 1,218,906 3,799,719 2,144,645 2,144,645 $ (436,168) $ 3,363,551 $ 3,799,719 AQMD Variance Favorable Budget Actual (Unfavorable) $ 9,575 $ 9,575 $ 131,700 136,245 4,545 131,700 145,820 14,120 125,500 34,900 90,600 125,500 34,900 90,600 6,200 110,920 104,720 (157,543) 157,543 (157,543) 157,543 (151,343) 110,920 262,263 182,334 182,334 $ 30,991 $ 293,254 $ 262,263 51 Aid to Cities Variance Favorable Budget Actual (Unfavorable) $ 4,059 $ 4,059 4,059 4,059 4,059 4,059 4,059 4,059 $ 79,107 79,107 $ 79,107 $ 83,166 $ 4,059 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 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 safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year M. Earthquake Variance Favorable Budget Actual (Unfavorable) $ 276,787 $ 276,787 $ 90,485 2,294,237 2,203,752 44,962 44,962 90,485 2,615,986 2,525,501 2,059,864 235,173 1,824,691 2,059,864 235,173 1,824,691 (1,969,379) 2,380,813 4,350,192 (1,969,379) 2,380,813 4,350,192 (4,344,081) (4,344,081) $ (6,313,460) $ (1,963,268) $ 4,350,192 Landscape Maintenance District #1 Stormwater Utility Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 9,438 $ 9,438 $ 42,104 $ 42,104 $ 303,377 1,076,104 772,727 $ 1,850,000 1,847,538 (2,462) 295 295 303,377 1,085,542 782,165 194,764 44,843 149,921 194,764 44,843 149,921 108,613 1,040,699 932,086 108,613 1,040,699 932,086 49,283 49,283 $ 157,896 $ 1,089,982 $ 932,086 1,850,000 1,889,937 39,937 2,350,640 1,537,886 812,754 25,000 25,000 2,375,640 1,537,886 837,754 (525,640) 352,051 877,691 (197,820) (197,820) (197,820) (197,820) (723,460) 154,231 877,691 898,140 898,140 $ 174,680 $ 1,052,371 $ 877,691 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 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 safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year 70 Economic Development Administration Variance Favorable Budget Actual (Unfavorable) $ 4,550,000 $ 2,448,840 $ (2,101,160) 4,550,000 2,448,840 (2,101,160) 4,798,723 2,453,941 2,344,782 4,798,723 2,453,941 2,344,782 (248,723) (5,101) 243,622 (248,723) (5,101) 243,622 $ (248,723) $ (5,101) $ 243,622 Miscellaneous Grants Variance Favorable Budget Actual (Unfavorable) $ 1,379 $ 1,379 $ 556,839 5,617 (551,222) 556,839 6,996 (549,843) 79,764 10,660 69,104 79,764 10,660 69,104 477,075 (3,664) (480,739) 477,075 (3,664) (480,739) (3,784) (3,784) $ 473,291 $ (7,448) $ (480,739) 71 Sewer Maintenance Variance Favorable Budget Actual (Unfavorable) $ 1,399 $ 1,399 1,399 1,399 1,399 1,399 1,399 1,399 $ - $ 1,399 $ 1,399 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue Total Revenues Expenditures: Current Operating: General government Public safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year 72 OCJP Grant Variance Favorable Budget Actual (Unfavorable) $ 76 $ 76 $ 318,750 230,176 (88,574) 318,750 230,252 (88,498) 352,321 230,252 122,069 352,321 230,252 122,069 (33,571) 33,571 (33,571) 33,571 $ (33,571) $ - $ 33,571 BJA Law Enforcement Variance Favorable Budget Actual (Unfavorable) $ 5,304 $ 5,304 $ 167,632 167,632 167,632 172,936 5,304 184,395 10,631 173,764 184,395 10,631 173,764 (16,763) 162,305 179,068 (16,763) 162,305 179,068 $ (16,763) $ 162,305 $ 179,068 73 Supplemental Law Grant Variance Favorable Budget Actual (Unfavorable) $ 10,568 $ 10,568 $ 302,182 302,182 302,182 312,750 10,568 302,182 167,178 135,004 302,182 167,178 135,004 145,572 145,572 145,572 $ - $ 145,572 $ 145,572 (Continued) CITY OF SANTA CLARITA Combining Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual All Special Revenue Funds (Continued) For the Year Ended June 30, 1997 Revenues: Developer fees Use of money and property Revenue from other agencies Fines and forfeitures Service charges Otherrevenue Total Revenues Expenditures: Current Operating: General government Public safety Public works Community development Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Budget $ 1,512,886 15,000 35,673,451 265;700 2,255,527 23,500 Totals Actual $ 2,214,931 1,202,768 21,772,326 301,485 3,083,643 90,949 Variance Favorable (Unfavorable) $ 702,045 1,187,768 (13,901,125) 35,785 828,116 67,449 39,746,064 28,666,102 (11,079,962) 477,821 302,182 2,985,188 6,610,578 28,712,731 39,088,500 265,152 167,178 2,167,733 2,837,881 7,878,708 13,316,652 212,669 135,004 817,455 3,772,697 20,834,023 25,771,848 657,564 15,349,450 14,691, 886 44,020 (6,855,849) Total Other Financing Sources (Uses) (6,811,829) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances (Deficits) - Beginning of Year Fund Balances (Deficits) - End of Year 74,619 (7,089,062) (7,014,443) (6,154,265) 8,335,007 8,138,905 8,138,905 30,599 (233,213) (202,614) 14,489,272 $ 1,984,640 $ 16,473,912 $ 14,489,272 74 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 payments on the .City's general long-term 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 Agency — To account for principal and interest payments on the loan from the City. Assets: Cash and investments with fiscal agents Fund Balances: Reserved for debt service CITY OF SANTA CLARITA Combining Balance Sheet All Debt Service Funds June 30, 1997 With Comparative Totals for June 30, 1996 General Public City Financing Redevelopment Totals Debt Authority Agency 1997 1996 $ - $ 1,687,948 $ - $ 1,687,948 $ 2,279,094 $ - $ 1,687,948 $ 77 $ 1,687,948 $ 2,279,094 CITY OF SANTA CLARITA Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Debt Service Funds For the Year Ended June 30, 1997 With Comparative Totals for the Year Ended June 30, 1996 Revenues: Use of money and property Expenditures: Principal retirement Interest and fiscal charges Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources: Advances from other funds Operating transfers in Total Other Financing Sources Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures Fund Balances - Beginning of Year Fund Balances - End of Year General Public City Financing Debt Authority $ 109,510 Redevelopment Agency $ 175,822 915,000 255,909 1,300,278 $ 149,040 431,731 2,215,278 149,040 (431,731) (2,105,768) (149,040) 149,040 431,731 1,514,622 431,731 1,514,622 149,040 (591,146) • • 2,279,094 • $ - $ 1,687,948 $ - • • • • • e • • 78 • • • F Totals 1997 1996 i • $ 109,510 $ 117,431 • 1,090,822 1,039,967 1,705;227 1,753,956 • 2,796,049 2,793,923 • • (2,686,539) (2,676,492) i r 149,040 98,978 i 1,946,353 2,583,351 i 2,095,393 2,682,329 (591,146) 5,837 i 2,279,094 2,273,257 $ 1,687,948 $ 2,279,094 • • • s • 79 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, 1997 Revenues: Use of money and property Expenditures: Principal retirement Interest and fiscal charges Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources: Operating transfers in Deficiency of Revenues and Other Financing Sources Over Expenditures Fund Balances - Beginning of Year Fund Balances - End of Year M General City Debt Variance Favorable Budget Actual (Unfavorable) $ 175,822 $ 175,822 290,498 255,909 $ 34,589 466,320 431,731 34,589 (466,320) (431,731) 34,589 431,731 431,731 (34,589) (34,589) $ (34,589) $ - $ (34,589) Public Financing Authority Variance Favorable Budget Actual (Unfavorable) $ 109,510 $ 109,510 $ 915,000 915,000 1,300,278 1,300,278 2,215,278 2,215,278 (2,215,278) (2,105,768) 109,510 1,514,622 1,514,622 (2,215,278) (591,146) 1,624,132 2,279,094 2,279,094 $ 63,816 $ 1,687,948 $ 1,624,132 Ell Totals Variance Favorable Budget Actual (Unfavorable) $ 109,510 $ 109,510 $ 1,090,822 1,090,822 1,590,776 1,556,187 34,589 2,681,598 2,647,009 34,589 (2,681,598) (2,537,499) 144,099 431,731 1,946,353 1,514,622 (2,249,867) (591,146) 1,658,721 2,279,094 2,279,094 $ 29,227 $ 1,687,948 $ 1,658,721 CAPITAL PROJECTS FUNDS The Capital Project Funds are used to account for the acquisition or construction of the City's major capital facilities, other than those financed by proprietary funds. Redevelopment Agency — To account for the construction of all capital projects located within the project area financed by the Redevelopment Agency. Community Facilities District No. 92-1 — To account for capital asset construction within Community Facilities District No. 92-1. 1991 Revenue Bonds — To account for capital asset acquisition and construction from the 1991 Revenue Bond proceeds issued by the Santa Clarita Public Financing Authority. Assessment District No. 92-2 — To account for certain public improvements within Assessment District No. 92-2. CITY OF SANTA CLARITA Combining Balance Sheet All Capital Projects Funds June 30, 1997 With Comparative Totals for June 30, 1996 Assets Cash and investments Cash and investments with fiscal agents Interest receivable Due from other governments Total Assets Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities Due to other governments Total Liabilities Fund Balances: Reserved for encumbrances Reserved for continuing appropriations Unreserved: Designated for capital improvements Undesignated Total Fund Balances Total Liabilities and Fund Balances $ 2,839 $ 16,317 W $ 1,010,291 172 1,280,477 $ 183,577 $ 2,871 $ 16,317 $ 2,290,940 $ 183,577 $ 95,182 $ 108,752 18,924 95,182 127,676 1,242,760 170,965 $ 16,317 749,539 $ 183,577 (92,311) (92,311) 16,317 2,163,264 183,577 $ 2,871 $ 16,317 $ 2,290,940 $ 183,577 M Community Redevelop- Facilities 1991 Assessment ment District Revenue Disctrict Agency No. 92-1 Bonds No. 92-2 $ 2,839 $ 16,317 W $ 1,010,291 172 1,280,477 $ 183,577 $ 2,871 $ 16,317 $ 2,290,940 $ 183,577 $ 95,182 $ 108,752 18,924 95,182 127,676 1,242,760 170,965 $ 16,317 749,539 $ 183,577 (92,311) (92,311) 16,317 2,163,264 183,577 $ 2,871 $ 16,317 $ 2,290,940 $ 183,577 M Totals 1997 1996 $ 1,013,130 $ 1,680,704 199,894 22,324 204 800 1,280,477 1,287,053 $ 2,493,705 $ 2,990,881 $ 203,934 $ 26,841 18,924 18,924 222,858 45,765 1,242,760 668,587 170,965 188,608 949,433 2,087,921 (92,311) 2,270,847 2,945,116 $ 2,493,705 $ 2,990,881 M CITY OF SANTA CLARITA Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Capital Projects Funds For the Year Ended June 30, 1997 With Comparative Totals for the Year: Ended June 30, 1996 Revenues: Use of money and property Revenue from other agencies Total Revenues Expenditures: Current Operating: General government Capital outlay Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Contributions from property owners Advances from other funds Operating transfers out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances - Beginning of Year Fund Balances - End of Year Community Redevelop- Facilities 1991 Assessment ment District Revenue District Agency No. 92-1 Bonds No. 92-2 $ 47 $ (6,007) $ 112,765 $ 16,002 5,467 47 (6,007) 118,232 16,002 329,375 22,280 855,480 619,580 329,375 877,760 619,580 (329,328) (6,007) (759,528) (603,578) 787,155 237,017 237,017 787,155 (92,311) (6,007) (759,528) 183,577 22,324 2,922,792 $ (92,311) $ 16,317 $ 2,163,264 $ 183,577 ffl Totals 1997 1996 $ 122,807 $ 279,245 5,467 1,656,042 128,274 1,935,287 351,655 480,218 1,475,060 6,776,850 1,826,715 7,257,068 (1,698,441) (5,321,781) 787,155 237,017 498,103 (1,250,000) 1,024,172 (751,897) (674,269) (6,073,678) 2,945,116 9,018,794 $ 21270,847 $ 2,945,116 m CITY OF SANTA CLARITA Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Budgeted Capital Projects Funds For the Year Ended June 30, 1997 Revenues: Use of money and property Revenue from other agencies Total Revenues Expenditures: Current Operating: General government Capital outlay Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources: Advances from other funds (Deficiency) of Revenues and Other Financing Sources Over Expenditures Fund Balances - Beginning of Year Fund Balances - End of Year iE Redevelopment Agency Variance Favorable Budget Actual (Unfavorable) $ 47 $ 47 47 47 $ 500,000 329,375 170,625 500,000 329,375 170,625 (500,000) (329,328) 170,672 237,017 237,017 (500,000) (92,311) 407,689 $ (500,000) $ (92,311) $ 407,689 1991 Revenue.Bonds $ 38,000 Variance 15,720 Favorable Budget Actual (Unfavorable) $ 112,765 $ 112,765 5,467 5,467 118,232 118,232 $ 38,000 22,280 15,720 2,508,704 855,480 1,653,224 $ 112,812 2,546,704 877,760 1,668,944 (2,546,704) (759,528) 1,787,176 (2,546,704) (759,528) 1,787,176 2,922,792 2,922,792 $ 376,088 $ 2,163,264 $ 1,787,176 m Totals $ 538,000 Variance 186,345 Favorable Budget Actual (Unfavorable) $ 112,812 $ 112,812 5,467 5,467 118,279 118,279 $ 538,000 351,655 186,345 2,508,704 855,480 1,653,224 3,046,704 1,207,135 1,839,569 (3,046,704) (1,088,856) 1,957,848 237,017 237,017 (3,046,704) (851,839) 2,194,865 2,922,792 2,922,792 $ (123,912) $ 2,070,953 $ 2,194,865 • • TRANSIT ENTERPRISE FUND Transit Enterprise Fund — To account for the operation of the City's local public transit bus system. is CITY OF SANTA CLARITA Transit Enterprise Fund - Comparative Balance Sheet June 30, 1997 and 1996 Assets Current Assets: Cash and investments Accounts receivable Due from other governments Prepaid items Total Current Assets Restricted Assets: Deposit Deferred bond issue costs Total Restricted Assets Property, Plant and Equipment (Net) Total Assets Liabilities and Fund Equity Current Liabilities: Accounts payable and accrued liabilities Deferred revenues Due to other funds Current portion of long-term debt Total Current Liabilities Long -Term Debt, Net of Current Portion Total Liabilities Fund Equity: Contributed capital Retained earnings: Reserved for debt service Unreserved Total Retained Earnings Total Fund Equity Total Liabilities and Fund Equity 93 1997 1996 $ 57,673 $ 38,025 16,136 1,066,833 1,052,969 295 14,198 1,105,153 1,140,976 489,500 64,131 553,631 9,365,963 $ 11,024,747 $ 896,195 600 883,545 1,118,140 2,898,480 489,500 76,526 566,026 9,466,001 $ 11,173,003 $ 846,293 600 1,316,760 1,763,114 3,926,767 3,644,898 4,757,256 6,543,378 8,684,023 2,226,649 1,622,071 489,500 1,765,220 2,254,720 4,481,369 $ 11,024,747 489,500 377,409 866,909 2,488,980 $ 11,173,003 CITY OF SANTA CLARITA Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Transit Enterprise Fund For the Years Ended June 30, 1997 and 1996 Operating Revenues: Transportation revenue Other revenue Total Operating Revenues Operating Expenses: Administrative Transportation services Depreciation and amortization Total Operating Expenses Operating Loss Nonoperating Revenues (Expenses): Interest expense Intergovernmental grants Total Nonoperating Revenues (Expenses) Net Loss Before Operating Transfers Operating Transfers: Operating transfers in Operating transfers out Total Operating Transfers Net Income Add depreciation on contributed assets Net Increase in Retained Earnings Retained Earnings (Deficit) - Beginning of Year Retained Earnings - End of Year 94 1997 $ 1,825,913 49,465 1996 $ 1,832,299 2,169 1,875,378 1,834,468 379,862 311,484 5,843,170 5,556,867 708,034 693,449 6,931,066 6,561,800 (5,055,688) (4,727,332) (338,418) (451,812) 195,410 ' 524,662 (143,008) 72,850 (5,198,696) (4,654,482) 6,466,345 5,632,076 (3,670) 6,462,675 5,632,076 1,263,979 977,594 123,832 123,193 1,387,811 1,100,787 866,909 (233,878) $ 2,254,720 $ 866,909 • • • CITY OF SANTA CLARITA • Comparative Statement of Cash Flows Transit Enterprise Fund • For the Years Ended June 30, 1997 and 1996 Cash Flows from Operating Activities: Operating loss Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation and amortization Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governments (Increase) decrease in prepaid items Increase (decrease)in accounts payable and accrued liabilities Increase (decrease)in deferred revenue Total Adjustments Net Cash Used by Operating Activities Cash Flows from Noncapital Financing.Activities: Intergovernmental grants 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 by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition of capital assets Contributed capital Principal payments on long-term debt Interest expense on long-term debt Net Cash Used by Capital and Related Financing Activities Net (Increase) Decrease in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year Cash and Cash Equivalents - End of Year 95 1997 1996 $ (5,055,688) $ (4,727,332) 708,034 693,449 (21,889) (9,397) (13,864) (702,324) 13,903 (8,616) 49,902 (17,522) 600 736,086 (43,810) (4,319,602) (4,771,142) 195,410 883,545 6,466,345 (3,670) (1,316,760) 6,224,870 (591,893) 728,410 (1,761,040) (338,418) 524,662 1,316,760 5,632,076 (1,342,677) 6,130,821 (464,172) 1,292,560 (1,678,582) (451,812) (1,962,941) (1,302,006) (57,673) 57,673 57,673 $ - $ 57,673 INTERNAL SERVICE FUNDS Intemal Service Funds are used to account for goods or services providedbya 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 CLARITA Combining Balance Sheet All Internal Service Funds June 30, 1997 With Comparative Totals for June 30, 1996 Assets Current Assets: Cash and investments Accounts receivable Interest receivable Prepaid items Total Current Assets Property, Plant and Equipment Equipment Less accumulated depreciation Net Property, Plant and Equipment Total Assets Liabilities and Fund Equity Current Liabilities: Accounts payable and accrued liabilities Lease payable,. current portion Due to other funds Total Current Liabilties Long -Term Liabilities: Lease payable, net of current portion Total Liabilities Fund Equity (Deficit): Retained earnings: Unreserved Total Liabilities and Fund Equity M Self - Insurance 78,324 119 625 Computer Vehicle Replacement Replacement $ 142,099 $ 787,374 874 6,152 79,068 142,973 793,526 452,273 28,450 (90,454) 361,819 28,450 $ 79,068 $ 504,792 $ 821,976 $ 1,002,453 $ 174,864 1,002,453 174,864 110,775 1,002,453 285,639 (923,385) 219,153 $ 821,976 $ 79,068 $ 504,792 $ 821,976 Totals 1997 1996 $ 1,007,797 $ 850,875 119 7,651 6,698 3,206 1,015,567 860,779 480,723 195,848 (90,454) 390,269 195,848 $ 1,405,836 $ 1,056,627 $ 1,002,453 $ 530,347 174,864 166,634 17,349 1,177,317 714,330 110,775 29,214 1,288,092 743,544 117,744 313,083 $ 1,405,836 $ 1,056,627 CITY OF SANTA CLARITA Combining Statement of Revenues, Expenses and Changes in Retained Earnings All Internal Service Funds For the Year Ended June 30, 1997 With Comparative Totals for The Year Ended June 30, 1996 Operating Revenues: Charges for services Insurance reimbursement Total Operating Revenues Operating Expenses: Services and supplies Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest income Interest expense Net Nonoperating Revenues (Expenses) Net Income (Loss) Before Operating Transfers Operating Transfers: Operating transfers in Operating transfers out Net Operating Transfers Net Income (Loss) Retained Earnings (Deficits) - Beginning of Year Retained Earnings (Deficits) - End of Year 100 Self- Computer Vehicle Insurance Replacement Replacement $ 681,673 $ 78,800 $ 152,100 10,000 691,673 78,800 152,100 1,196,595 90,454 1,196,595 90,454 (504,922) (11,654) 152,100 1,027 5,237 31,484 (23,611) 1,027 (18,374) 31,484 (503,895) (30,028) 183,584 125,000 30,000 125,000 30,000 (378,895) (28) 183,584 (544,490) 219,181 638,392 $ (923,385) $ 219,153 $ 821,976 Totals 1997 1996 $ 912,573 $ 1,039,074 10,000 26,233 922,573 1,065,307 1,196,595 230,539 90,454 1,287,049 230,539 (364,476) 834,768 37,748 38,974 (23,611) 14,137 38,974 (350,339) 873,742 155,000 250,000 (160,000) 155,000 90,000 (195,339) 963,742 313,083 (650,659) $ 117,744 $ 313,083 101 CITY OF SANTA CLARITA Combining Statement of Cash Flows All Internal Service Funds For the Year Ended June 30, 1997 With Comparative Totals for The Year Ended June 30, 1996 Cash Flows from Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in prepaid items Increase (decrease)in accounts payable and accrued liabilites Total Adjustments Net Cash Provided (Used) by Operating Activities 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: Acquisition of capital assets Proceeds from long-term debt Principal payments on long-term debt Interest expense on long-term 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 - Beginning of Year Cash and Cash Equivalents - End of Year 102 Self- Computer Vehicle Insurance Replacement Replacement $ (504,922) $ (11,654) $ 152,100 90,454 (119) 3,206 472,106 475,193 90;454 (29,729) 78,800 152,100 125,000 30,000 (17,349) 107,651 30,000 (256,424) (28,450) 256,424 (166,633) (23,611) (190,244) (28,450) 402 6,086 30,306 78,324 (75,358) 153,956 217,457 633,418 $ 78,324 $ 142,099 $ 787,374 Totals 1997 1996 $ (364,476) $ 834,768 90,454 (119) 3,206 2,687 472,106 (491,727) 565,647 (489,040) 201,171 345,728 17,349 155,000 250,000 (160,000) (17,349) (304,099) 137,651 (196,750) (284,874) (195,848) 256,424 195,848 (166,633) (23,611) (218,694) 36,794 32,276 156,922 181,254 850,875 669,621 $ 1,007,797 $ 850,875 103 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 Community Facilities District No. 92-1. Assessment District No. 92-2 — To account for monies held to account for debt service requirements of Assessment District No. 92-2. CITY OF SANTA CLARITA Combining Balance Sheet All Trust and Agency Funds June 30, 1997 With Comparative Totals for June 30, 1996 Assets Cash and investments Cash and investments with fiscal agents Accounts receivable Interest receivable Total Assets Liabilities and Fund Balances Expendable Trust Agency Community Facilities Assessment General Deferred District District Trust Compensation No. 92 - 1 No. 92-2 $ 376,224 $ 4,453,517 $ 1,918,762 $ 78,608 170,937 312 $ 547,473 $ 4,453,517 $ 1,918,762 $ 78,608 Liabilities: Accounts payable and accrued liabilities $ 123,373 Deposits 424,100 Deferred compensation payable $ 4,453,517 $ 1,918,762 $ 78,608 Total Liabilities $ 547,473 $ 4,453,517 $ 1,918,762 $ 78,608 106 Totals 1997 1996 $ 376,224 $ 286,763 6,450,887 5,142,134 170,937 92,399 312 150 $ 6,998,360 $ 5,521,446 $ 123,373 $ 44,706 2,421,470 2,300,563 4,453,517 3,176,177 $ 6,998,360 $ '5,521;446 107 CITY OF SANTA CLARITA Comparative Statement of Revenues, Expenditures and Changes in Fund Balance General Trust Expendable Trust Fund For the Years Ended June 30, 1997 and 1996 Revenues: Other revenue Expenditures: Current Operating: Public works Excess of Revenues Over Expenditures Fund Balance - Beginning of Year Fund Balance - End of Year In 1997 $ 410,672 1996 $ 620,404 410,672 620,404 CITY OF SANTA CLARITA Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1997 Deferred Compensation Assets: Cash and investments with fiscal agents Liabilities: Deferred compensation payable Community Facilities District No, 92-1 Assets: Cash and investments with fiscal agents Liabilities: Deposits Assessment District No. 92-2 Assets: Cash and investments with fiscal agents Liabilities: Deposits Totals Assets: Cash and investments with fiscal agents Liabilities: Deferred compensation payable Deposits Total Liabilities Balance July 1, 1996 Additions $ 3,176,177 $ 1,277,340 $ $ 3,176,177 $ 1,277,340 $ Balance Deletions June 30, 1997 $ 4,453,517 $ 4,453,517 $ 1,965,957 $ 1,883,857 $ 1,931,052 $ 1,918,762 $ 1,965,957 $ 1,883,857 $ 1,931,052 1,918,762 $ - $ 930,779 $ 852,171 $ 78,608 $ - $ 930,779 $ 852,171 $ 78,608 $ 5,142,134 $ 4,091,976 $ 2,783,223 $ 6,450,887 $ 3,176,177 $ 1,277,340 $ 4,453,517 1,965,957 2,814,636 $ 2,783,223 1,997,370 $ 5,142,134 $ 4,091,976 $ 2,783,223 $ 6,450,887 W ACCOUNT GROUPS General Fixed Assets — To account for capital assets acquired by the City for general City purposes and which are not accounted for in proprietary fund operations. General Lone -Term Debt —To account for the City's long-term debt not reported in proprietary fund operations. CITY OF SANTA CLARITA Comparative Schedule of General Fixed Assets by Source June 30, 1997 and 1996 General Fixed Assets: Land and improvements Buildings Equipment Total General Fixed Assets Investment in General Fixed Assets by Source: Donation of general fixed assets from the County of Los Angeles, at estimated fair market value General fund Total Investment in General Fixed Assets 113 W*A $ 29,326,193 13,830,284 6,804,483 1996 $ 29,300,124 13,640,104 6,247,091 $ 49,960,960 $ 49,187,319 $ 12,448,203 $ 12,448,203 37,512,757 36,739,116 $ 49,960,960 $ 49,187,319 CITY OF SANTA CLARITA Schedule of General Fixed Assets by Function and Activity June 30, 1997 114 Land and Improvements Buildings Equipment Totals Function and Activity: General government $ 13,572,791 $ 10,434,197 $ 3,949,357 $ 27,956,345 Public safety 55,167 55,167 Public works 180,330 1,488,001 1,668,331 Parks and recreation 15,753,402 2,156,233 800,818 18,710,453 Community development 1,059,524 511,140 1,570,664 Total Fixed Assets $ 29,326,193 $ 13,830,284 $ 6,804,483 $ 49,960,960 114 CITY OF SANTA CLARITA Schedule of Changes in General Fixed Assets by Function and Activity For the Year Ended June 30, 1997 115 General General Fixed Assets Fixed Assets July 1, 1996 Additions Deletions June 30, 1997 Function and Activity: General government $ 27,429,844 $ 526,501 $ 27,956,345 Public safety 34,799 20,368 55,167 Public works 1,522,665 145,666 1,668,331 Parks and recreation 18,665,721 44,732 18,710,453 Community development 1,534,290 36,374 1,570,664 $ 49,187,319 $ 773,641 $ - $ 49,960,960 115 CITY OF SANTA CLARITA Comparative Schedule of General Long -Term Debt June 30, 1997 and 1996 1997 1996 Amount Available and to be Provided for Payment of General Long -Term Debt: Amount available for retirement of long-term debt $ 1,687,948 $ 2,279,094 Amount to be provided for payment of long-term debt 22,856,983 22,808,890 Total Amount Available and to be Provided for Payment of General Long -Term Debt: General Long -Term Debt Payable: 1991 Revenue Bonds - Public Financing Authority Notes payable Lease payable Advances to Santa Clarita Redevelopment Agency Compensated absences Total General Long -Term Debt Payable U1 $ 24,544,931 $ 25,087,984 $ 18,800,000 3,102,876 95,828 1,998,305 547,922 $ 24,544,931 $ 19,715,000 3,278,698 1,612,248 482,038 $ 25,087,984 STATISTICAL SECTION (Unaudited) CITY OF SANTA CLARITA General Governmental Revenues by Source (1) All Fiscal Periods from December 15, 1987 (Date of Incorporation) to June 30, 1997 Fiscal Year Taxes Licenses & Permits Developer Fees Use of Money& Property Fines '& Forfeits Charges for Services Contribution from Property Owners Total 1987-88 $ 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 2,917,787 401,793 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 54,378,258 1994-95 49,191,936 1,272,109 4,795,744 2,339,564 418,353 4,444,838 0 62,462,544 1995-96 44,403,994 1,749,220 3,746,441 2,396,859 445,410 5,332,345 0 58,074,269 1996-97 i 51,162,249 1,513,469 2;214,931 i 2,382,221 453,991 6,719,070 0 64,445,931 (1) Includes General, Special Revenue, Debt Service, Capital Projects, and Expendable Trust Funds Source: City Finance Division General Governmental Revenues by Sources 70,000,000 ® Contributions from Property 60,000000 Owners 5 13 Charges for services 4 ■ Fines & Forfeits 3 ® Use of Money & Property 2 [3000 Developer Fees 10,Q�000 ■ Licenses & Permits 04. T m 9 m m T m T T m praxes r` m 01 O N n O a) W m m m m rn m m m m m m m rn m rn rn m m m m �'��Q� �aa 0, q 118 PBq`dp A M xAp 000000 «�., ks tlrB d�p9Vd�ad 6A i V'. �. tl06 0,000000 4 a 0000 y Ak4F � AN B exile) n �` p� ggBx ia� LAt 4k" 4. i1A P � 118 CITY OF SANTA CLARITA General Governmental Expenditure by Function (1) All Fiscal Periods from December 15, 1987 (Date of Incorporation) to June 30, 1997 Fiscal Year General - Govt„ Public Safety Public Works Parks & Rec. Comm Dev. Maint. Capital Outlay Debt Service Total 1987-88 $ 535,975 $2,329,899 $1,235,438 $ 237,932 $150,032 $60,298 $ 80,357 $ 62,704. $ 4,692,635 1988-89 1,982,151 7,281,724 3,079,575 1,084,379 680,954 0 1,897,366 852,561 16,858,710 1989-90 3,721,584 7,047,498 7,174,219 2,448,765 1;421,896 0 11,589,753 1,149,551 34,553,266 1990-91 4,337,791 7,498,105 6,427,528 3,818,211 1,871,961 9 9,591,664 403,909 33,949,169 1991-92 3,566,198 8,419,797 5,293,024 5,609,782 5,021,236 0 24,424,817 3,548,433 55,883,287 1992-93 3,491,725 8,389,392 5,591,281 5,869,522 4,587,470 0 25,636,052 4,243,319 57,808,761 1993-94 4,119,942 9,256,950 4,686,014 5,676,932 3,895879 0 26,201,540 2,471,080 56,608,337 1994-95 5,185,377 10,116,169 5,784,519 6,414,630 1 4,747,081 0 1 25,487,576 2,685,046 60,420,398 1995-96 6,707,617 9,754,629 3,772,255 7,065,890 6,633,168 0 19,182,077 2,793,923 55,909,559 1996-97 7,414,750 10,330,331 3,326,023 7,166,622 1 8,091,086 0 9,482,827 1 2,796,049 1 48,607,688 t1) Includes tieneral, bpectal Kevenue, Debt Service, Capital Projects, and Expendable Trust Funds Source: City Finance Division - f T k Y Y t k General Governmental Expenditure by Function 70,000,000 5 R {jx kW4 xt`Add k k{ Pk kkvb y I�Y�Nk 4A#ek }YN PoP> 3 Y - 4a# b ib9 pry &tr tl 4 8 k P>y � AMo-kB p �� Sa a'k P P4G p Debt Service 60,000,000 M )a 4%ef f Rx. yyY, AX1p-0P N4"1111 .nY. k �£ £ Skk�kk. #k� MbA 3�k� BgtlY - Jk t gpL E Capital Outlay 50,000 000 P "' i rtAA4 E3 Maintenance R qe, di A k� F YNi 40,000 000 a kA0 by k 94 ry. p Y 2e ■ Community Development .y g k " ai Po eW MY � 4b i� g^ Ck W P"� �lA ♦CQ 30,000 000 k M u xk RPP y'k:`. ak��". r3 Parks & Recreation i�p A�4 � Rx la •6A °YC w a ni {.. � e. O Public Works 20,000 000 ■ Public Safety ' 0000 000 p General Covemment 0 m rn rn m m m m m m m f T k Y Y t k Po s 3A9 3 }} #q dg_Sbk 5 R {jx kW4 xt`Add k k{ Pk kkvb y I�Y�Nk 4A#ek }YN PoP> 3 Y - 4a# b ib9 pry &tr tl 4 8 k P>y � AMo-kB p �� Sa a'k P P4G p e. &Z )a 4%ef f Rx. yyY, AX1p-0P yy3 .nY. k �£ £ Skk�kk. #k� MbA 3�k� BgtlY - Jk t gpL P "' i rtAA4 k R qe, di A k� F YNi £• k� y a kA0 by k 94 ry. p Y 2e .y g k " ai Po eW MY � 4b i� g^ Ck W P"� �lA ♦CQ IPo&a2v nP. k M u xk RPP y'k:`. ak��". kk i�p A�4 � Rx la •6A °YC w a ni {.. � e. 119 CITY OF SANTA CLARITA Taxable Assessed Values- Ten Year History Fiscal Year 1987-88 * 1988.89 1989.90 1990.91 1991-92 Common mK �efr Z9 KA {kN 8 P6p 4d� tlp�pPp• Property $ N/A $ 4,061,732 $ 4,856,876 $ 5,644,003 $ 6,761,266 Value P Public [�qd� i a&rc n- Utilities N/A 7,207 5,592 6,270 9,625 Valuation Unsecured Valuation N/A N/A 141,561 299,042 351,717 Full Market Valuation N/A 4,068,939 5,004,029 5,949,315 7,122,608 Fiscal Year 1992-93 1993-94 1994-95 1995-96 1996-97 Common mK �efr Z9 KA {kN 8 P6p 4d� tlp�pPp• Property $ 7,170,561 $ 7,371,712 $ 7,659,425 $ 7,436,483 $ 7,470,840 Value P Public [�qd� i a&rc n- Utilities 366 1,476 1,900 1,878 2,164 Valuation Unsecured Valuation 342,726 338,205 347,743 375,315 432,467 Full Market Valuation 7,513,654 7,711,393 8,007,168 7,813,676 7,905,471 The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30, 1988. Source: Los Angeles County Assessor Taxable Assessed Values - 10 Year History 9,000,000 6,000,000 7,000,000 6,000,000 ❑Unsecured Valuations 5,000,000 an 4,000,000 ■Public Utilities. Valuation 3,000,000 2,000,000 ®Common Property Value 1,000,000 0 m m m m m m m m m m m Q, rn m m m m m rn m m 0 9 8➢d Xk t$5 BtlPNN&p Sdpp�bpiY^Q9B@ 7y - 0,1B ppS k,OM 1dYd% IQry Hdg{�0r 3��BdE FA d p pddtl dp M�d,fAi WPPiA YXWSy pi P, 120 mK �efr Z9 KA {kN 8 P6p 4d� tlp�pPp• PoN 9P Btlik i' a � �'{3 kv v f9 4E AdV Pde�§"�a§i P wtd OV � X Xp��e 194 P [�qd� i a&rc n- 5 arta Y& p� oaw � �Pp y ^vv 8$j9i YSP .gqiev B oy� e dam• A e� n s �v '� nn rv. P r 120 CITY OF SANTA CLARITA Schedule of Direct and Overlapping Bonded Debt June 30,1997 1996-97 Assessed Valuationi $7 905,470-911 DIRECT AND OVERLAPPING BONDED DEBT: % Applicable Debt 06/30/97 Los Angeles County 1.765 $ 1,100,389 Los Angeles County Building Authorities 1.765 32,616,947 Los Angeles County Pension Obligations 1.765 43,278,813 Los Angeles County Superintendent of Schools Certificates of Participation 1.765 139,612 Los Angeles County Flood Control District 1.808 978,761 Los Angeles County Flood Control District Certificates of Participation 1.808 3,738,311 Los Angeles County Sanitation District #23 and Authorities 0.141 8,661 Los Angeles County Sanitation District #26 and Authorities 84.226 13,529,033 Los Angeles County Sanitation District #32 and Authorities 68.044 8,326,777 Castaic Lake Water Agency 71.843 3,592,150 Newhall County Water District, I.D. #2 (Sewer and Water Issues) 82.583-80.202 1,129,369 Santa Clarita Community College District 71.370 695,858 William S. Hart Union High School District and Certificates of Participation 71.354 799,164 William S. Hart Union High School District Community Facilities District #87.1 100.00 4,598,767 Castaic Union School District and Certificates of Participation 31.537 6,564,000 Newhall School District and Certificates of Participation 85.118 1,870,461 Saugus Union School District Certificates of Participation 69.227 9,552,956 Sulphur Springs Union School District and Certificates of Participation 76.412 25,499,369 Los Angeles Community College District and Unified School District Certificates of Participation 0.001 3,244 City of Santa Clarita 1915 Act Bonds 100.000 869,432 Los Angeles County Regional Park and Open Space Assessment District 1.765 3,002,265 City of Santa Clarita Certificates of Participation 100.000 18,800,000 City of Santa Clarita Community Facilities District #92-1 100.000 16.930.000 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $199,624,339 Less: Los Angeles County Certificates of Participation (100% self-supporting from leasehold revenues on properties in Marina del Rey) 2.144.389 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT X197.479.950 Ratios to Assessed Valuation: Direct Debt ($18,800,000) 0.24% Total Gross Debt 2.53% Total Net Debt 2.50% STATE SCHOOL BUILDING AID REPAYABLE AS OF 06/30/97, $106 Source: California Municipal Statistics, Inc., September 24, 1997 121 CITY OF SANTA CLARITA Schedule of Legal Debt Margin June 30, 1997 Net Assessed Value of All Taxable Property $7,905,470,911 Legal Debt Limit - 15% of Total Assessed Valuation 1.185.520.636 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 122 CITY OF SANTA CLARITA Property Tax Levies and Tax Collections All Fiscal Periods from December 15, 1987 (Date of Incorporation) to June 30, 1997 1987-88 $ N/A Total 1988-89 Total Current Fiscal Year Current Levy Collections 1987-88 $ N/A $ N/A 1988-89 2,628,992 2,457,851 1989-90 2,673,787 2,515,423 1990-91 3,396,903 3,159,977 1991-92 3,992,654 3,704,424 1992-93 3,674,709 3,410,769 1993-94 3,807,415 3,557,146 1994-95 3,854,637 3,676,538 1995-96 3,949,833 3,763,989 1996-97 3,973,109 3,826,207 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 123 CITY OF SANTA CLARITA Insurance in Force June 30, 1997 Bond for S. Becker 124 AMOUNTOF CARRIER POLICY COVERAGE COVERAGE TERM Insurance Company of the West CSR117475007 Public Entity - $1,000,000 03101/97-03101198 General Liability & Auto Liability Insurance Company of the West ESR117475107 Excess Public 9,000,000 03/01/97.03/01/98 Entity General Liability & Auto Liability Planet Insurance Company KZ1813718 Extended Reporting 900,000 12/15/90 -unlimited Endorsement Planet Insurance Company KR1735681 Extended Reporting 4,000,000 12/15/90 -unlimited Endorsement Scottsdale Insurance Company CLS391857 "Special Events" Liability 2,000,000 10/16/96-10116197 General Aggregate 2,000,000 10/16/96-10/16/97 Products/Completed Operations 1,000,000 10/16/96-10/16/97 Each Occurrence 1,000,000 10/16/96-10/16/97 Personal/Advertising Injury 1,000,000 10/16/96-10/16/97 Fire Legal Liability 50,000 10/16/96-10/16/97 St. Paul Fire & Marine 400HV9733 Public Official 100,000 08/05/96-08/05/97 Bond for G. Caravalho St. Paul Fire & Marine 400JH1797 Public Official 100,000 02/18/97-02/18/98 Bond for K. Pulskamp Great American Insurance Company FS9562531 Public Official 100,000 01/13/97-01/13/98 Bond for K. Tonoian Great American Insurance Company FS7316338 Public Official 300,000 05/11/97-05/11/98 Bond for S. Stark Great American Insurance Company FS9562530 Public Official 100,000 01/13/97-01/13198 Bond for S. Becker 124 • • • COVERAGE • TERM • Worker's Compensation • 05/01/97-05101/98 • Business Income 4,500,000 03101197-03/01198 • Building • 03/01/97-03101/98 CARRIER • State Compensation Fund 300,000 - Reliance Insurance Company • • Reliance Insurance Company 1,252,981 ! Fine Arts • ! Contractor's Equipment ! • Miscellaneous Property • American National Fire • • RLI Insurance Company • Pacific Insurance Company • • Medical Payments Progressive Casualty ! • Self -Insured • • On selected vehicles only Excess Flood 2,500,000 • Source: City Risk Management ! IMFO25963 • 7,500,000 ! • Excess 5,500,000 • ZG0007703 Differencein 5,000,000 • s CA074684470 • 250,000 CITY OF SANTA CLARITA Insurance in Force (continued) June 30, 1997 125 AMOUNTOF P LTCY. COVERAGE COVERAGE TERM 1060671 Worker's Compensation 3,000,000 05/01/97-05101/98 QB8570922 Business Income 4,500,000 03101197-03/01198 QB8572264 Building 15,974,500 03/01/97-03101/98 Personal Property 1,482,500 Employee Dishonesty 300,000 Valuable Papers 500,000 Mini Computer 1,252,981 Fine Arts 5,000 Contractor's Equipment 384,324 Miscellaneous Property 641,000 Automobile Liability 250,000 • Uninsured/Underinsured Motorist 250,000 • Medical Payments 5,000 • CompJCollision Self -Insured IMP988033500 Excess Flood 2,500,000 12115/96-12115197 Excess 12,500,000 IMFO25963 Excess Earthquake 7,500,000 12115/96-12/15/97 Coverage Excess 5,500,000 ZG0007703 Differencein 5,000,000 12115/96-12/15197 Conditions CA074684470 Commercial Auto 250,000 05106/97-05/06/98 Each Accident 500,000 Property Damage 100,000 125 CITY OF SANTA CLARITA Demographic Statistics All Fiscal Periods from December 15, 1987 (Date of Incorporation) to June 30, 1997 Fiscal Year Square Miles Number of Housing Units Population** *1987-88 39.40 36,006 147,228 1988-89 39.40 38,278 147,228 1989-90 39.80 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 1472228 1995-96 42.88 46,556 129,861 ***1996-97 45.12 50,391 141,690 * 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, 1997. Source: City Finance Department 126 CITY OF SANTA CLARITA Principal Sales Taxpayers and Major Employers June 30, 1997 Employment I Products/Services Best Buy 100 Appliance Store Frontier Chrysler/Toyota 160 Car Dealership Home Depot 175 Building Materials Store Lucky Food Centers 254 Grocery Store Magic Ford 202 Car Dealership Price Club 145 Wholesale Store Robinson's -May 252 Department Store Scott Irvin Chevrolet/Geo 80 Car Dealership Target Stores 180 Department Store Terry York's Dodge/Isuzu 160 Car Dealership Source: City Finance Department, State Board of Equalization 127 CITY OF SANTA CLARITA Property Value, Construction, and Bank Deposits All Fiscal Periods from December 15, 1987 (Date of Incorporation) to June 30, 1997 (Dollar Amounts Expressed in Thousands) Fiscal Year Commercial Number of Units (1) Construction Value Residential Number of Units (2) Construction Value Bank Deposits (3) Total Assessed Valuations (4) 1987-88 N/A* $ N/A* N/A* $ N/A* $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-Q5 31 11,173 48 10,415 1,155,427 8,007,168 1995-96 36 16,353 63 11,456 1,006,677 7,813,676 1996-97 18 5,261 169 30,098 N/A 7,905,471 * 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 0£ prior year. Source: The Findley Report (4) Breakdown between commercial and residential property is not available at this time. 128 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, 1997 Fiscal Year General Los Angeles County Castaic Lake.. Water Agency School, Districts County Sanitation Districts County Flood Control Total *1987-88 N/A N/A NIA NIA N/A N/A N/A 1988-89 1 1.000000 0.002781 1 0.101825 0.082829 0.002750 0.010042 1.200227 1989-90 1.000000 0.002242 0.081833 0.062990 0.002230 0.006679 1.155974 1990-91 1.000000 0.002104 0.067713 0.049088 0.001879 0.005626 1.126410 1991-92 1.000000 0.001880 0.059573 0.037935 0.001457 0.005204: 1.106049 1992-93 1.000000 0.001713 0.068031 0.022308 0.001045 0.004098. 1.097195 1993-94 1.000000 0.001993 0.067630 0.028250 0.001533 0.005876 1.105282 1994-95 1.000000 0.001933 0.067630 0.028250 0.001528 0.005885 1.105226 1995-96 1.000000 0.001814 0.064348 0.020451 0.001354 0.000963 1.088930 1996-97 1.000000 0.001604 0.061024 0.018054 0.000525 0.001940 1.083147 *The Los Angeles County Tax Collector's Office did not have rates available for the fiscal year ended June 30, 1988. Source: Los Angeles County Tax Auditor/Controller 129 CITY OF SANTA CI ARITA Miscellaneous Statistics June 30,1997 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 141,690** Land Area 45.12 square miles Number of Local Parks 15* 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 11 completed parks, and 4 sites reserved for future parks ** Source: Los Angeles County Population and Housing Estimate Report dated January 1, 1997 Source: City Finance Department 130