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HomeMy WebLinkAbout2010-01-12 - AGENDA REPORTS - JUNE 30 2009 ANNUAL FIN RPT (2)Agenda Item: Wh A O-L CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: CONSENT CALENDAR Item to be presented by: Darren Hernandez DATE: January 12, 2010 SUBJECT: JUNE 30, 2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND AUDIT COMMITTEE LETTER DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council and Redevelopment Agency approve: 1. The Component Unit Financial Statements and the Redevelopment Agency State Controller Report for fiscal year ending June 30, 2009. 2. The Comprehensive Annual Financial Report (CAFR) and Audit Committee Letter for fiscal . year ending June 30, 2009. BACKGROUND The City's independent audit firm, Caporicci & Larson, CPA, has completed the City's and Agency's annual audit for fiscal year ending June 30, 2009. Caporicci & Larson, CPA conducted the audit in accordance with generally accepted auditing standards, whereby an audit plan was prepared and followed to obtain reasonable assurance the City's and Agency's financial statements were free from material misstatements. The audit included a review, on a test basis, of documents supporting the amounts and disclosures in the financial statements. The audit also included assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. No significant findings were noted as a result of the audit. Based on the audit performed, Caporicci & Larson, CPA issued an unqualified audit opinion letter. The opinion reflects the best level an organization can receive on its financial statements. APPROVED, / The letter is identified as the "Independent Auditor's Report" in the City's CAFR for fiscal year ending June 30, 2009. In accordance with professional standards, an Audit Committee Letter has been prepared by Caporicci & Larson, CPA to provide specific information related to the audit scope and performance. No items of concern were noted by the auditors. ALTERNATIVE ACTIONS No feasible alternative action has been identified by staff. FISCAL IMPACT None. ATTACHMENTS Component Unit Financial Statements - RDA available in the City Clerk's Reading File Comprehensive Annual Financial Report available in the City Clerk's Reading File Redevelopment Agency State Controller Report available in City Clerk's Reading File Audit Committee Letter available in the City Clerk's Reading File -,2- CkL Caporicci & Larson Certified Public Accountants December 17, 2009 To the Honorable Mayor and Members of City Council of the City of Santa Clarita Santa Clarita, California We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita (City) for the year ended June 30, 2009, and have issued our report therein dated December 17, 2009. Professional standards require that we provide you with the following information related to our audit. Our Responsibilities under U.S. Generally Accepted Auditing Standards and OMB Circular A-133 , Our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with oversight by the City Council are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve the City Council and management of their financial statement responsibilities. In planning and ' performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also in accordance with OMB Circular A- 133, we examined, on a test basis, evidence about the City's compliance with the types of compliance requirements described in the "U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement" applicable to each of its major federal programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. Toll Free Ph: (877) 862-2200 Oakland Orange County 180 Grand Ave., Suite 1365 9 Corporate Park, Suite 100 oakland, California 94612 Irvine, California 92606 Toll Free Fax: (866) 436-o927 Sacramento San Diego 777 Campus Commons Rd., Suite 200 4858 Mercury, Suite 166 Sacramento, California 95825 San Diego, California 92111 To the Honorable Mayor and Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Other Information in Documents ContaininL- Audited Financial Statements Our responsibility for other information in documents containing the audited financial statements is as follows: • Our responsibility for other information in documents containing the City's financial statements and reports does not extend beyond the financial information identified in our reports. • We do not have an obligation to perform any procedures to corroborate other information contained in those documents. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter dated July 6, 2009. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Notes to the Basic Financial Statements including new accounting policies adopted. The City adopted the following new accounting standards during 2009. • GASB Statement No. 45, Financial. Reporting for Postemployment Benefit Plans (OPEB) other than Pension Plans - this Statement establishes standards for the measurement, recognition, and display of OPEB expense/ expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. • GASB Statement No. 49, Financial Reporting for Pollution Remediation Obligations - This Statement addresses accounting and financial reporting standards for pollution (including contamination) remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. • GASB Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments - The Statement incorporates the hierarchy of generally accepted accounting principles (GAAP) for, state and local governments into the GASB's authoritative literature. • GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards - This Statement incorporates accounting and financial reporting guidance previously only contained in the American Institute of Certified Public Accountants (AICPA) auditing literature, into the GASB's accounting and financial reporting literature for state and .local governments. To the Honorable Mayor and Members of City Council of the City of Santa Clarita Santa Clarita, California Page 3, We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. We found no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current. events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were as follows: • Investment Valuations • Capital Assets Depreciation • Other Post Employment Benefits Obligations • Accrual for Workers' Compensation and General Liabilities The disclosures in the financial statements are transparent, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to the financial statement users. The most sensitive disclosures affecting the financial statements were as follows: • Summary of Significant Accounting Polices - Note 1 • Cash and Investments - Note 2 • Capital Assets - Note 3 • Long -Term Debt - Note 4 • Pension Plan - Note 8 • Post Employment Benefits - Note 9 • Self Insurance - Note 12 • Subsequent Events - Note 18 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We proposed nine audit adjusting entries during.our audit. To the Honorable Mayor and Members of City Council of the City of Santa Clarita Santa Clarita, California Page 4 Account No. Account Description 100.1014.002 Fair Value Adjustment others 100.1014.002 Fair Value Adjustment others 100.4305.001 Unrealized Gain/ Loss 100.4305.001 Unrealized Gain/Loss DR CR 1,548,695 1,548,695 1,548,695 1,548,695 3,097,390 3,097,390 To correct the GASB 31 Adjustment, which was booked the wrong way Adjustments to each fund is recorded, but not reflected in the AJE tab, see back of AJE h Auditor Proposed 1022.001 Interest receivable others 11697,661 1022.001 Interest receivable others 1,697,661 4303.001 Interest -. other investment 975,249 4303.001 Interest - other investment 975,249- 2051.001. Deferred Revenue 722,412 2051.001 Deferred Revenue 722,412 159 3,395,322 3,395,322 To correct JE 102575 Accrue/Defer interest receivable Auditor Proposed 391.1014.002 Fair Value Adjustment others 151,770 390.4305.001 Unrealized Gain/Loss 2,727 358.4305.001 Unrealized Gain/Loss 4,045 100.1014.001 Fair Value Adjustment LAIF 17,768 358.1014.001 Fair Value Adjustment LAIF 159 391.4305.001 Unrealized Gain/ Loss 151,770 390.1014.002 Fair Value Adjustment others 2,727 358.1014.002 Fair Value Adjustment others 4,045 100.4305.001 Fair Value Adjustment others 17,768 358.4305.001 Unrealized Gain/Loss 159 176,469 176,469 GASB 31 Adjustment to record bonds and laif investments - Per auditors's notes Auditor Proposed To the. Honorable Mayor and Members of City Council of the City of Santa Clarita .Santa Clarita, California Page 5 Account No. 100.1022.001 Interest receivable Account Description DR CR 460,033 Various Funds Interest receivable 460,033 100.2051.001 Deferred revenue 460,033 Various Funds Deferred revenue 460,033 920,066 920,066 To correct JE102587 to reverse incorrect interest receivable and corresponding interest receivabl Auditor Proposed 100.1022.001 Interest receivable 491,873 Various Funds Interest receivable 491,873 100.2051.001 Deferred revenue 491,873 Various Funds Deposits payable 491,873 983,746 983,746 To correct deferred interest receivable Auditor Proposed 700.3031.002 Contributed Capital. 517,225 700.4721.001 Revenue 517,225 To correct error in booking to contributed capital Auditor Proposed 51001303 Expenditures 24,000 303.1001.001 Cash 24,000 100.1001.001 Cash 24,000 100.2005.100 AP 24,000 900.3032.001 Invested in Capital Assets 24,000 900.1111.001 Land 24,000 To correct error in booking deposits payable Auditor Proposed f To the Honorable Mayor and Members of City Council of the City of Santa Clarita Santa Clarita, California Page 6 Account No. Account Description DR CR 230.1001.001 14504.5211.004 721.4571.003 721.1001.001 100.1022.002 100.1051.002 100.4611.003 100.4621.001 Cash 44,820 Expenditures 44,820 Revenue 44,820 Cash 44,820 To correct error in booking to contributed capital Auditor Proposed Interest receivable 11,660 Loan receivable 48,706 Revenue Revenue Write off Medina Loan Auditor Proposed Disagreements with Management 11,660 48,706 For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements. arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 17, 2009, a signed copy of which is attached for your review. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal courseof our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of the City Council and management of the City and' is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, Caporicci & Larson, CPAs Irvine, California Redevelopment Agency Of the City of Santa Clarita Santa Clarita, California Basic Financial Statements and Independent Auditors' Reports For the year ended June 30, 2009 C&L Caporicci & Larson Certified Public Accountants Redevelopment Agency of the `City of Santa Clarita Basic Financial Statements For the year ended June 30, 2009 Table of Contents Page IndependentAuditors' Report................................................................................................................................1 Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) ..............3 Basic. Financial Statements: Government -Wide Financial Statements: Statementof Net Assets..............................:................................................................................................10 Statement of Activities and Changes in Net Assets................................................................................11 Fund Financial Statements: Governmental Funds: BalanceSheet..........................................................................................................................................14 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statementof Net Assets...................................................................................................................15 Statement of Revenues, Expenditures and Changes in Fund Balances........................................16 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government=Wide Statement of Activities. andChanges in Net Assets.......................................................................................................:......17 Notesto Basic Financial Statements................................................................................................................19 Supplementary Information: Computation of Set -Aside Capital Projects Fund's Excess Surplus.....................................................33 Report on Internal Control over Financial Reporting and on Compliance and Other Matters................................................................................................................35 C& Caporicci & Larson Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Board of Directors of the Redevelopment Agency of the City of Santa Clarita Santa Clarita, California We have audited the accompanying basic financial statements of the governmental activities and each major fund of the Redevelopment Agency of the City of Santa Clarita (Agency), a component unit of the City of Santa Clarita, California (City), as of and for the year ended June 30, 2009, as listed in the foregoing table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States 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 financial statements' are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Subsequent to the basic financial statements date of June 30, 2009 and the year then ended, the State of California (State) has borrowed, deferred paying certain revenues and proposed taking other funds from local governments including cities, counties, districts and agencies. These actions by the State include: o Amounts to be taken from Redevelopment Agency funds in fiscal year 2010 These amounts are significant to the Agency and. may affect its ongoing operations. Certain lawsuits are -in process to stop such State actions. For more detailed information, see Note 7 in the Notes to Basic Financial Statements. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of the Agency as of June 30, 2009, and the respective changes in financial position for the year then ended in conformity with generally accepted accounting principles in the United States. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 Oakland Orange County Sacramento San Diego . 180 Grand Ave., Suite 1365 9 Corporate Park, Suite 100 777 Campus Commons Rd., Suite 200 4858 Mercury, Suite 106 Oakland, California 94612 Irvine, California 92606 Sacramento, California 95825 San Diego, California 92111 To the Board of Directors of the Redevelopment Agency of the City of Santa Clarita Santa Clarita, California Page 2 In accordance with Government Auditing Standards, we have also issued our report dated . December 17, 2009 on our consideration of the Agency's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to .provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The accompanying Required Supplementary Information, such as Management's Discussion and Analysis as listed in the table of contents, is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the Required Supplementary Information. However, we did not audit the information and express no opinion on it. Our audit was conducted -for the -purpose of forming an opinion on the financial statements that collectively comprise the Agency's basic financial statements. The accompanying Supplementary Information is presented for purpose of additional analysis and is not a required part of the basic financial statements. The Supplementary Information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. (7 .. . Irvine, California December 17, 2009 4 REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2009 Our discussion and analysis of the City of Santa Clarita Redevelopment Agency's (the Agency) financial performance for the fiscal year ended June 30, 2009 provides a comparison of current -year to prior -year ending results based on the government -wide statements, an analysis on the Agency's overall financial position, results of operations to assist users in evaluating the Agency's financial position, and a discussion of significant changes that occurred in the funds. In addition, it describes the activities during- the year for capital assets and long-term debt. We end our discussion and analysis with a description of currently known facts, decisions, and conditions that are expected to have a significant effect on the financial position or result of operations. Please read it in conjunction with the Agency's financial statements. FINANCIAL HIGHLIGHTS • The Agency's tax increment revenues increased by $308,993, or 8.37% over the previous fiscal year. • The change in the Agency's net assets (deficit) totaled ($716,196), resulting in a net addition to the deficit of 18.47%. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements in three components as follows: 1) Government -Wide Financial Statements The "Statement of Net Assets" and "Statement of Activities" provide information about the activities of the Agency as a whole and present a long-term view of the Agency's finances. 2) Fund Financial Statements The Fund Financial Statements tell how the Agency's services were financed in the short term, as well as what remains for future spending. Fund financial statements also report the Agency's operation in more detail than the government -wide statements by providing information about each of the Agency's funds. 3) Notes to the Basic Financial Statements The notes provide additional information necessary to enable the user to fully understand the various financial statements. See independent auditors report. 3 REPORTING THE AGENCY AS A WHOLE - Government -wide Financial Statements The Statement of Net Assets and the Statement of Activities One of the most important questions asked about the Agency's finances is, "Is the Agency as a whole better or worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities report information about the Agency as a whole and its activities, in a. way to answer this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private -sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid. These two statements report the Agency's net assets and changes. Net assets are the difference between assets and liabilities, which is one way to measure the Agency's financial health or financial position. Over time, increases or decreases in the Agency's net assets are an indication of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the Agency's tax base and the effects of changes in statutory requirements to assess the overall health of the Agency. The. "Statement of Net Assets" and the "Statement of Activities and Changes in Net Assets" presents information distinguished by function type. The Agency's basic service of community development is principally supported by tax increment revenues and investment income and, therefore, all related activities are considered to be within the governmental activities function. The statement of net assets reports all of the Agency's assets and liabilities,. with the difference between the two reported as net assets. Net assets are one way to measure the City's financial health or financial position. Over time, increases or decreases in the City's net assets are an indication of whether its financial health is improving or deteriorating. Other things to consider are non-financial factors, such as changes in the economy due to external factors that would cause an increase or decrease in consumer spending. REPORTING THE AGENCY'S FUNDS - Fund Financial Statements Fund Financial Statements The fund financial statements provide detailed information about the Agency's funds. A fund is a grouping of related accounts used to account for and accumulate financial information related to a specific activity or objective. Some funds are,required to be established by state law and bond covenants; however, management established other funds to help it control and manage money for particular purposes or to show it is meeting legal responsibilities for using certain taxes, grants, .and other resources. The Agency has only governmental type funds. . Governmental Funds The Agency's basic services are reported in governmental funds. Governmental funds financial statements focus on how money flows in and out of those fund's and the balances left at year-end that are available for spending. These funds are reported using an accounting method called "modified accrual" accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Agency's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be .spent in the near future to finance the Agency's programs. The differences between the results of the governmental- fund financial statements and those of the government - wide financial statements are explained in a reconciliation following. each governmental fund financial statement. See independent auditors report. GOVERNMENT -WIDE FINANCIAL ANALYSIS The following is .a condensed version of the statement of net assets for the fiscal years ended June 30, 2008' and 2009. TABLE 1 Net Assets Assets: . Current assets Liabilities: Long-term liabilities outstanding Other liabilities Total liabilities Net Assets (Deficit): Restricted Unrestricted Total Net Assets (Deficit) Governmental Activities 2009 2008 $ 52,009,403 $ 52,393,295 54,644,937 55,331,833 1,959,020 939,820 56,603,957 56,271,653 50,041,586 40,344,272 .(54,636,140) (44,222,630) $ (4,594,554) $ (3,878,658) The ,Agency's net assets are comprised of two :components: restricted net assets and unrestricted net assets. As of 'June 30, 2009, restricted net assets realized an overall improvement in net asset position, with the restricted assets exceeding the related liabilities by an additional $9,697,314. Unrestricted net assets realized a decrease in net asset position of $(10,413,510). Restricted net assets are subject to external restrictions and must be used to satisfy the Agency's requirement for compliance related to low- and moderate -income housing. The unrestricted net asset deficit is representative of the Agency's funding, through the support of advances from the City of Santa Clarita, of those operational and program expenditures that exceed the amount of tax increment revenues and other income. The cost of the Agency's activities for 2009 was $6,158,832, which represents a decrease of $938,509 from the previous year. This decrease was primarily the result of approximately $1,669,622 of additional ' interest payments, a decrease of personnel expenditures of $183,379, and a decrease in land purchases of $2,545,335. Agency activities are funded by tax increment revenues, advances from the City of Santa Clarita, and tax revenue bonds. See independent auditors report. 5 GOVERNMENT -WIDE FINANCIAL ANALYSIS (Continued) The following is a condensed version of the changes in net assets for the fiscal years ended June 30, 2009 and 2008. TABLE 2 Changes in Net Assets REVENUES: Tax increment Investment earnings Transfer in from the City of Santa Clarita Other revenue Total Revenues EXPENSES: Community development expenses Interest expense Total Expenses CHANGE IN NET ASSETS CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The Agency does not own any capital assets. Debt Governmental Activities 2009 2008 $ 4,002,643 $ 3,693,650 1,309,240 513,464 60,673 - 69,780 40,704 5,442,636 4,247,818 3,183,951 5,792,082 2,974,881 1,305,259 6,158,832 7,097,341 $ (716,196) $ (2,849,523) At the end of fiscal year 2009, the Agency had total debt outstanding of $56,478,930, which is an increase of $1,147,097 or 20.73% from the prior year. Long-term liabilities at June 30, 2009 and June 30, 2008 are summarized below: Tax allocation bonds payable, net Less: unamortized net bond discount Advances.from the City of Santa Clarita Total long-term liabilities 2009 $ 38,710,000 (160,376) 17,929,306 20085 $ 38,710,000 (165,906) 16,787,739 56.478.930 S 55.331.833 The Agency's change in long-term liabilities consisted of the following: • Interest of $1,141,567 was added to the advances from the City of Santa Clarita. CONTACTING THE AGENCY'S FINANCIAL DIVISION This financial report is designed to provide a general overview of the Agency's finances and to show the Agency's accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the City's Administrative Services Department, at the City of Santa Clarita, 23920 Valencia Boulevard, Suite 295, Santa Clarita, California 91355, or call (661).255-4920. See independent auditors report. 6 BASIC FINANCIAL STATEMENTS. This page intentionally left blank: 8 GOVERNMENT -WIDE FINANCIAL STATEMENTS 9 Redevelopment Agency of the City of Santa Clarita Statement of Net Assets June 30, 2009 ASSETS Cash and investments Cash and investments with fiscal agent Receivables: Accounts Tax increment Interest receivable Land field for resale Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Accrued interest payable Due to other governments Long term debt - due within one year Total current liabilities Noncurrent liabilities: Advance from the City of Santa Clarita Long term debt - due in more than one year Total noncurrent liabilities Total liabilities NET ASSETS Restricted for: Low and moderate income housing Debt service Redevelopment projects Total restricted Unrestricted (deficit) Total net assets (deficit) See accompanying Notes to Basic Financial Statements. 10 Governmental $ 48,998,169 1,171,624 91,489 20,164 120,761 242,598 447,426 748,996 520,000 1,959,020 17,929,306 36,715,631 54,644,937 12,246,730 J V, VY l,Jou (54,636,140) $ (4,594,554) Redevelopment Agency of the City of Santa Clarita Statement of Activities and Changes in Net. Assets For the year ended June 30, 2009 PROGRAM EXPENSES: Community development - redevelopment Interest expense . Total governmental expenses GENERAL REVENUES: Tax increment Investment earnings Transfer in from the City of Santa Clarita Other revenue Total general revenues Changes in net assets NET ASSETS: Beginning of year End of year See accompanying Notes to Basic Financial Statements. Governmental Activities $ 3,183,951 2,974,881 6,158,832 4,002,643 1,309,240 60,973 69,780 5,442,636 (716,196) (3,878,358) $ (4,594,554) This page intentionally left blank. 12 FUND FINANCIAL STATEMENTS 13 Redevelopment Agency of the City of Santa Clarita Balance Sheet Governmental Funds June 30, 2009 ASSETS Cash and investments Cash and investments with fiscal agents Receivables: Accounts Tax increment Interest Land held for resale Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to other governments Deferred revenues Advances from other funds Total liabilities Fund Balances: Reserved for: Land held for resale Debt service Capital projects fund " Unreserved, reported in: Debt service fund Undesignated Total fund balances (deficit) Total liabilities and fund balances Debt Service Funds Capital Projects Funds Total Low -Moderate Low -Moderate Governmental Redevelopment Income Housing Redevelopment Income Housing Funds $ 22,090 $ 9,223 $ 37,029,227 $ 11,937,629 $ 48,998,169 902,745 268,879 - - 1,171,624 - 91,489 - 91,489 - 20,164 20,164 87,944 32,817 120,761 - - 1,607,196 - 1,607,196 $ 924,835 $ 278,102 $ 38,815,856 $ 11,990,610 $ 52,009,403 234,581 $ 8,017 $ . 242,598 748,996 - 748,996 37,423 13,965 51,388 1,021,000 21,982 1,042,982 - - 1,607,196 - 1,607,196 924,835 278,102 - - 1,202,937 - - 36,187,660 - 36,187,660 - - - 11,968,628 11,968,628 924,835 278,102 37,794,856 11,968,628 50,966,421 $ 924,835 $ 278,102 $ 38,815,856 $ 11,990,610 $ 52,009,403 See. accompanying Notes to Basic Financial Statements. 14 Redevelopment Agency of the City of Santa Clarita Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets June 30, 2009 Total Fund Balances = Total Governmental Funds $ 50,966,421 Amounts reported for governmental activities in the Statement of Net Assets were different because: Debt issuance costs are reported as an expenditures in the governmental funds in the year that the costs are incurred. On the Statement of Net Assets, such costs are reported as deferred charges and amortized over the life of the debt. Unamortized deferred charges at June 30, 2009 are: 1,313,993 Long-term liabilities applicable to government activities are not due and payable in the current period and, therefore, are not reported in the governmental funds. The Agency's long-term liabilities are: Advances from the City of Santa Clarita (17,929,306) Tax allocation bonds payable (38,710,000) Less: Unamortized net bond discount 160,376 (56,478,930) Interest on long-term liabilities is not accrued in the governmental funds. On the statement of net assets -such costs are reported as interest payable. (447,426) A "portion of interest receivable is not available to pay for current period expenditure_ s and, therefore, are deferred in the governmental funds. 51,388 Net Assets of Governmental Activities $ (4,594,554) See accompanying Notes #o Basic Financial Statements. 15 Redevelopment Agency of the City of Santa Clarita Statement of Revenues, Expenditures. and Changes in Fund Balances Governmental Funds For the year ended June 30, 2009 - REVENUES: Tax increment Investment income Other revenue Total revenues EXPENDITURES: Current: Community development: Administration Professional services Tax increment passed through to other agencies Capital outlay Debt service: Bond issuance costs Interest Total expenditures . REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers: In Out " Transfer from the City of Santa Clarita Total other financing sources (uses) Net change in fund balances FUND BALANCES: . Beginning of year, as restated, End of year Debt Service Funds Capital Projects Funds Total Low -Moderate . Low -Moderate Governmental Redevelopment Income Housing Redevelopment Income Housing Funds $ - $ - $ 3,202,114 $ 800,529 $ 4,002,643 20,820 2,745 889,591 396,084 1,309,240 - 69,780 - 69,780 20,820 2,745 4,161,485 1,196,613 5,381,663 - - 208,611 169,280 377,891 - - 214,953 15,975 230,928 - - 1,079,382 - 1,079,382 - 1,495,750 - 1,495,750 - - 11,814 6,593 18,407 2,255,942 335,205 - - 2,591,147 2,255,942 335,205 3,010,510 191,848 5,793,505 (2,235,122) (332,460) 1,150,975 1,004,765 (411,842) 1,114,374 335,205 9,888 13,195 1,472,662 (9,888) (13,195) (1,114,374) (335,205) (1,472,662) 60,973 60,973 1,104,486 322,010 (1,043,513) (322,010) 60,973 (1,130,636) (10,450) 107,462 682,755 (350,869) 2,055,471 288,552 37,687,394 11,285,873 51,317,290 $ 924,835 $ 278,102 $ 37,794,856 $ 11,968,628 $ 50,966,421 See accompanying Notes to Basic Financial Statements. 16 Redevelopment Agency of the City of Santa Clarita Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets For the year ended June 30, 2009 Net Change in.Fund Balances - Total Governmental Funds $ (350,869) Amounts reported for governmental activities in the Statement of Activities were different because: The issuance of long-term liabilities provides current nnancial resources to governmental tunas wtule the repayment of the principal of long-term liabilities consumes the current financial resources of governmental funds. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amortized in the Statement of Activities. The net effect of these differences in the treatment of long-term liabilities and .related items is as follows: Amortization of bond discount (5,530) Amortization of bond issuance costs (38,647) (44,177) interest expense on long-term aebt was reportea to me government-wtae statement of Activities ana Changes in Net Assets, but it did not require the use of current financial resources. Therefore, interest expense was not reported as an expenditure in the governmental funds. The reconciling amount was the change in accrued interest from the prior year. (333,524) Investment income in the Statement of Activities that does not provide current financial resources is not reported as revenue in the, governmental funds 12,374 Change in Net Assets of Governmental Activities $ (716,196) See accompanying Notes to Basic Financial Statements. 17 This page'intentionally left blank. 18 NOTES TO BASIC FINANCIAL STATEMENTS 19 Redevelopment Agency of the City of. Santa Clarita Notes to Basic Financial Statements For the year ended June 30, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the Redevelopment Agency of the City of Santa Clarita (Agency), a component unit of the City of Santa Clarita, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Agency's accounting policies are described below. A. The Financial Reporting Entity The Agency was established on November 29, 1989, 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. On February 22, 1994, the Board of Directors of the Agency passed Ordinance No. 94-3, which adopted the Agency's redevelopment plan (the Plan). The Plan was formed pursuant to applicable provisions of the Community Redevelopment Law (Section 33000 of the Health and Safety Code) . and the Community Redevelopment Financial Assistance and Disaster Project Law (Section 34000 of the Health and Safety Code) to reconstruct areas destroyed. or damaged by the Northridge Earthquake on January 17, 1994. On February 28, 1996, the Superior Court of the State of California for the County of Los Angeles invalidated the Plan. A new plan was adopted by the City's Board of Directors on July 8, 1997 by Ordinance No. 97-12. GASB Statement No. 14, The Financial Reporting Entity, defines the reporting entity as the primary government and those component units for which the primary government is, or has the potential to be, financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's Board and either (a) the primary government.has the ability to impose its will or (b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the. primary government. Since the City Council of the City also serves as the Board of Directors of the Agency, the City, in effect, has the ability to influence and control operations. Therefore, the City has oversight responsibility for the Agency. Accordingly, in applying the criteria of GASB Statement No. 14, the .financial statements of the Agency are included in the City's Comprehensive Annual Financial Report. The Agency has the same fiscal year as the City. The Comprehensive Annual Financial Report of the City can be obtained from the Finance Department of the City. B. Basis of Accounting and Measurement Focus The accounts of the Agency are organized on the basis of funds, each of which is considered a separate accounting entity with its own self -balancing set of accounts that comprise its assets, liabilities, fund balance, revenues and expenditures. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. 20 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B.. Basis of Accounting and measurement Focus, Continued Government - Wide Financial Statements 0 The Agency's Government -Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of governmental activities for the Agency accompanied by a total column. The Agency does not have any business -type activities, therefore only governmental activities are reported. These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Agency's assets and liabilities, including capital assets and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. The following interfund activities have been eliminated: Due from and to other funds Transfers in and out Governmental Fund Financial Statements Governmental. fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental. funds and non -major funds. The Agency has presented all of its funds as major. All governmental funds are accounted for on a spending or current financial resources measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Agency, are increment property tax, interest revenue, and other revenue. Expenditures are. recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable' and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the balance sheet and revenue is recognized. 21 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued The reconciliations of the Fund Financial Statements to the Government -Wide Financial Statements are provided to explain the differences created by the integrated approach of GASB Statement No. 34. The Agency reports the following governmental funds as major funds: Redevelopment Debt Service Fund - is used to account for the resources accumulated and payments made for principal and interest on long-term liabilities. Low and Moderate Income Housing Debt Service Fund - is used to account for the restricted financial resources accumulated and payments made for principal and interest on long-term liabilities associated with low and moderate income housing activities. Redevelopment Capital Projects Fund - is used to account for financial resources to be used for the administration of the Agency's redevelopment activities and the improvement of blighted areas within the project area, except those_ resources required to be accounted for in another fund. Low and Moderate Income Housing Capital Projects Fund - is used to account for the restricted financial resources to be usedto increase the supply of available low and moderate income housing in the area. C. Cash and Investments The Agency pools cash resources from all funds with the City in order to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment .Pools, highly liquid money market investments. with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in structured notes and asset- backed securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these investments are subject to market risk as to change in interest rates. Cash equivalents are considered amounts in demand deposits and short-term investments with a. maturity date within three months of. the date acquired by the Agency and are presented as "Cash and Investments in the accompanying basic.financial statements. 22 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash and Investments, Continued Because the Agency pools its cash with the City, certain disclosure requirements in accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of GASB Statement No. 3), if applicable, for deposit and investment risks are specified in the. City's financial statements for the following areas: ➢ Interest Rate Risk ➢ Credit Risk o Overall • Custodial Credit Risk • Concentration of Credit Risk Foreign Currency Risk D. Cash and Investments with Fiscal Agents Cash and investments with fiscal agents are restricted for the redemption of bonded .debt and for acquisition and construction of capital projects. E. Encumbrances Encumbrance accounting is employed in the governmental funds. Encumbrances (e.g. purchase orders, contracts, etc.) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities .because the commitments .will be reappropriated and honored during the subsequent year. F. Land Held for Resale Land held for resale is recorded at the lower of acquisition cost or market value, but not greater than net realizable value. Reported amounts are fully reserved, which indicates that they do not constitute available spendable resources. G. Capital Assets Government -Wide Financial Statements Capital assets, which include land, site improvements, buildings and improvements, equipment and infrastructure assets, are reported in the government -wide financial statements. Purchased or constructed capital assets are recorded at historical cost or estimated historical cost. Donated capital assets are valued at the fair market value of the asset on the date on which they were contributed. The costs of normal maintenance and repairs that do not add value to the assets or materially extend the life are not capitalized. Capital assets are defined as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Depreciation is charged to operations using the straight-line method of depreciation over the estimated useful lives of the assets as follows: Site improvements . 5-25 years Equipment 5-25 years Buildings and improvements 5-50 years Infrastructure 20-60 years 23 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Capital Assets, Continued Fund Financial Statements The fund financial statements do not present capital assets. As such, capital assets are shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets. The Agency has no capital assets as of June 30, 2009. H. Deferred Charges Deferred charges represent capitalized costs incurred in connection with the issuance . of long-term liabilities. These costs are amortized over the life of the debt on a straight-line basis. L Property Taxes and Tax Increment Financing The Agency's primary source of revenue comes from property taxes, referred to in the accompanying financial statements as "tax increment revenue." The assessed valuation of all property within each project area was determined on the date of adoption of the project area. Except for certain amounts provided by law (see Note 5), property taxes related to the incremental increase in assessed values after the adoption of the project area have been allocated to the Agency,. while allproperty taxes on the "frozen" assessed valuation as of the adoption date have been allocated to the City and other districts. The Agency is required by law to set aside 20% of gross tax increment revenues allocated to it for the purpose of increasing, improving or preserving the community's supply of low and moderate income housing. The Agency accounts for these monies in the Low -Moderate Income Housing Capital Projects Fund. The entire fund balance of this fund is reported as a reservation. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on November 1 and February 1 and become delinquent after December 10 and April 10. The County bills and collects the property taxes for the Agency. J. Long -Term Debt Government -Wide Financial Statements Long-term debt and other financed obligations are reported as liabilities in the Government -Wide Financial Statements. Bonds premiums and discounts, as .well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of applicable premium or discount. Fund Financial Statements The fund financial statements do not present long-term debt. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets. 24 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Risk Management The Agency participated in the City's self-insurance programs for workers' compensation and liability losses. Excess insurance is purchased to protect the City from losses above the self-insured retention. At no time during the past three years have insurance claims exceeded insurance coverage. L. Net Assets In the government -wide financial statements, net assets are classified in the following categories: Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." M. Fund Balances In the fund financial statements, reservations of fund balances are created to. either satisfy legal covenants, including State laws, that require a portion of the fund balance be segregated or identify the portion of the fund balances not available for future expenditures. N. `Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the Agency's policy is to apply restricted net assets first. O. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. 2. CASH AND INVESTMENTS The Agency had the following cash and investments at June 30, 2009: Cash and Investments $ 48,998,169 Cash and Investments with Fiscal Agents 1,171,624 Total • $ 50,169,793 The Agency's funds are pooled_ with the City's cash and investments in. order to generate optimum interest income. See the City's basic financial statements for disclosures related to cash and investments including those disclosures relating to interest rate risk, credit rate risk, custodial credit risk, and concentration risk. 25 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 3. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS . Interfund transfers: Transfers Out Debt Service Fund: Santa Clarita Redvelopment Low and Moderate Income Housing Capital Projects Fund: Santa Clarita Redvelopment Low and Moderate Income Housing Totals Transfers In Debt Service Fund Capital Projects Redevelopment Low and Moderate Redevelopment Low and Moderate Agency Income Housing Agency Income Housing Total $ - $ - $ 9,888 • $ - $ 9,888 - 13,195 13,195 1,114,374 - 1,114,374 - 335,205 - 335,205 $ 1,114,374 $ 335,205 $ 9,888 $ 13,195 $ 1,472,662 Transfers were primarily made for the purpose of making debt service payments and transferring the 20% set-aside for the tax increment monies. The transfers from the debt service funds to the capital projects funds provide funding for the Agency's redevelopment activities. The transfers from the capital projects funds to the debt service funds provide funding for debt service. Transfers from Ci Capital Projects Redevelopment Agency Transfers from the City of Santa Clarita $ 60,973 Totals $ 60,973 4. LONG TERM LIABILITIES The Agency had the following long-term liabilities at June 30, 2009: 26 Classification Balance Balance Due Within Due More July 1, 2008 Additions Deletions June 30, 2009 One Year Than One Year Tax Allocation Refunding Bonds Series 2008 $ 29,860,000 $ - $ - $ 29,860,000 $ 400,000 $ 29,460,000 Tax Allocation Bonds - Housing Set -Aside 8,850,000 - - 8,850,000 120,000 8,730,000 Less deferred amounts: Issuance discount for 2008 Tax Allocation Bonds (165,906) - 51530. (160,376) - (160,376) Bond issuance costs for 2008 Tax Allocation Bonds (1,354640) - 38,647 (1,31.3,993) - (1,313,993) Advances payable 16,787,739 1,141,567 - 17,929,306 17,929,306 Totals $ 53,979,193 $ -.1,141,567 $ 44,177 $ 55,164,937 $ 520,000 $: 54,644,937 26 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, .2009 4. LONG TERM LIABILITIES, Continued Tax Allocation Refunding Bonds, Series 2008 On June 12, 2008,: the Agency issued the Santa Clarita Redevelopment Agency Tax Allocation Bonds, Series 2008 (2008 Bonds) in the amount of $29,860,000. Proceeds of the 2008 Bonds will be used to finance certain redevelopment projects of the Agency, fund a debt service reserve account, and pay for costs of the bond issuance. The bonds were issued at a net discount of $165,906, which will be amortized and recognized as interest expense over the life of the debt on a straight-line basis for government -wide financial statement purposes. This, bond issue is comprised of $12,065,000 serial bonds maturing annually on October 1 through 2028 and three term bonds (totaling $17,795,000) maturing on October 1, 2032, October 1, 2037, and October 1, 2042 that are payable in annual sinking fund installments commencing October 1, 2029. Interest on the 2008 Bonds is payable semi-annually on October 1 and April at rates ranging from 4.00% to 4.75% for the serial bonds and 4.7.5% to 5.00% for the term bonds. The total principal and interest remaining to be paid on the Bonds is $60,181,010 as of June 30, 2009. For the current year, principal and interest paid on the Bonds was $1,104,098 and .property tax increment net revenues were $3,202,114. The Bonds required 34% of net property tax increment revenues. The outstanding balance of the Bonds was $29,860,000 at June 30, 2009. The, annual debt service requirements on these bonds are as follows: Year Ending June 30, Principal 2010 $ 400,000 2011 420,000 2012 435,000 2013 450,000 2014 470,000 . 2015-2019 2,655,000 2020-2024 3,230,000 2025-2029 4,005,000 2030-2034 5,050,000 2035-2039 6,395,000 2040-2043 6,350,000 Total $ 29,860,000 Tax Allocation Bonds - Housing Set -Aside Interest Total $ 1,380,148 $ 1,780,148 1,363,748 1,783,748 1,346,648 1,781,648 1,328,948 1,778,948 1,310,548 1,780,548 6,248,638 8,903,638 5,651,066 8,881,066 4,849,191 8,854,191 3,783,053 8,833,053 2,404,775 8,799,775 654,250 7,004,250 $ 30,321,010 $ 60,181,010 On June 2008, the Agency issued the Santa Clarita Redevelopment Agency Housing Set -Aside Tax. Allocation Bonds, Series 2008 (Housing Set -Aside Bonds) in the amount of $8,850,000. Proceeds of the Housing Set -Aside Bonds will be, used to finance low and.moderate income housing projects and programs, fund a reserve fund, and pay for costs of the bond issuance. The bonds were issued at a. net discount of $5,241. The bond issue is comprised of $3,550,000 serial bonds maturing annually on October 1 .through 2028 and three term bonds (totaling $5,300,000) maturing on October 1 , 2032, October 1, 2037, and October 1, 2042 that are payable in annual sinking fund installments commencing October 1, 2029. Interest on the, Housing Set -Aside Bonds is payable semi-annually on October 1 and April 1 at rates ranging from 4.00% to 4.875% for the serial bonds and 5.00% for the term bonds. 27 `Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG TERM LIABILITIES, Continued Tax Allocation Bonds - Housing Set -Aside, Continued The total principal and interest remaining to be paid on the Bonds is $17,999,159 as of June 30, 2009. For the current year, principal and interest paid on the Bonds was .$332,575 and property tax 'increment net revenues were $800,529. The Bonds required 41% of net property tax increment revenues. The outstanding . balance of the Bonds was $8,850,000 at June 30, 2009. The annual debt service requirements on the Housing Set -Aside Bonds are as follows: Year Ending June 30, Principal Interest Total 2010 $ 120,000 $ 415,156 $ 535,156 2011 125,000. 410,256 535,256 2012 125,000 405,256 530,256 2013 135,000 400,056 535,056 2014 140,000 394,556 534,556 2015-2019 780,000 1,883,181 2,663,181 2020-2024 945,000 1,707,825 2,652,825 2025-2029 1,180,000 1,471,122 2,651,122 2030-2034 1,500,000 1,145,000 2,645,000 2035-2039 1,905,000 721,375 2,626,375 2040-2043 1,895,000 195,375 2,090,375 Total $ 8,850,000 $ 9,149,159 $ 17,999,159 The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2009: Balance Balance July 1, 2008 Additions Deletions June 30, 2009 $ (165,906) $ - $ 5,530 $ (160,376) Amortization. expense was $5,530 for June '30, 2009. Bond Issuance Costs The following is a summary of bond issuance costs at June 30, 2009: Balance Balance July 1, 2008 Additions . :Deletions June 30, 2009 2008 Tax Allocation Bonds $ (1,352,640) $ $ 38,647 $ (1,313,993) Amortization expense for the .year ended June 30, 2009 was. $38,647. 28. Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG TERM LIABILITIES, Continued. Advances from the Ci Prior to June 1, 2009, interest at an annual rate of prime minus one percent. (7.25% for the eleven months ended May 31, 2008) was charged on the advances: On June 1, 2008, the advances were refinanced and consolidated into one note. The new note matures June 1; 2043 and bears simple interest calculated on an annual basis at a fixed rate of 6.8%. There is no fixed payment schedules for this note; however, all outstanding principle and accrued interest are due at maturity. The amount outstanding at June 30, 2009 is $17,929,306. 5. DUE TO OTHER GOVERNMENTS Pursuant to California Health and Safety Code Section 33607.5, the Agency is required to make statutory payments to taxing entities that were affected -by the adoption of the Agency's redevelopment plan. The payments to the affected taxing entities are to be allocated between each taxing entity to proportion to the share of property taxes each entity receives in the year the funds are allocated. The Agency is currently required to make annual payments equal to 20% of the gross tax increment received. Beginning in the eleventh fiscal year that tak "increments are received, the Agency will be required to pay an additional 16.8% of gross tax increment revenue based on the increase in assessed value over the tenth fiscal year. Beginning in the thirty-first fiscal year, the Agency will be required to pay an additional 11.2% of gross.tax increment revenue based on the increase in assessed value over the thirtieth fiscal year. In addition to these statutory payments, the Agency is required to make additional payments to certain affected taxing entities pursuant to separate agreements. For the fiscal year ended June 30, 2009, the Agency's required pass through payments totaled $800,528. As of June 30, 2009, the Agency still owed $748,996 of this amount to other governments. 6. COMMITMENTS AND CONTINGENCIES There are various claims and legal actions pending against the Agency for which no provision has been made in the accompanying basic financial statements. In the opinion of Agency management, liabilities arising from these claims and legal actions, if any, will not have an adverse material effect on the financial position of the.Agency. The Agency has received Federal grants for specific purposes that are subject to review and audit by the Federal government. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material. As of June 30, 2009, in the opinion of Agency Management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the Agency. 29 Redevelopment Agency of the City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 "6.• COMMITMENTS AND CONTINGENCIES, Continued The Agency's'Low/Moderate Income Housing Fund has accumulated excess surplus fund balances as defined by the California Health and Safety Code. The Agency is required to develop a plan to eliminate the excess surplus within the time frame allowed by the California Health and Safety Code. If the Agency does not eliminate the excess surplus within the time frame, significant penalties could be assessed, including transferring such excess surplus to the County Housing Authority and/or California Department of Housing and Community Development. 7. DEFICIT NET ASSETS Government -Wide Financial Statements Deficit Unrestricted net assets $ " (4,593,764) Total net assets $ (4,593,764) The negative amounts in unrestricted net assets and net assets were primarily caused by the recording of long-term debt. =It is anticipated that the deficit will be eliminated in future years from the receipt of tax increment revenues and the sale of other Agency assets. 8. SUBSEQUENT EVENTS Subsequent to June 30, 2009, the State of California (State) decided to borrow, to defer certain revenue payments and to take certain funds from local governments including the Agency. These amounts are significant to the Agency and are as follows: Property Taxes $1,375,082 Redevelopment Agency funds have been estimated. for a two year takeaway by the State. This decision is to be litigated by. the California Redevelopment Association and other parties with hope that this will be considered unconstitutional as was last year's State proposed takeaway. 30 SUPPLEMENTARY INFORMATION 31 This page intentionally left blank. Redevelopment Agency of the City of Santa. Clarita Computation of the Low/Moderate Income Housing Capital Projects Fund - Excess Surplus For the year ended July 1, 2008 OPENING FUND BALANCE, JULY 1, 2008 $ 2,269,242 LESS: Encumbrances 166,631 Available Low/Moderate Income Housing Funds 2,435,873 LIMITATION (GREATER OF $1,000,000 OR FOUR YEARS SET-ASIDE): Set-aside for last four years: 2007-2008 629,316 2006-2007 565,935 2005-2006 332,994 2004-2005 208,145 Total set-aside for last four years $ 1,736,390 Base limitation $ 1,000,000 Greater amount 1,736,390 COMPUTED EXCESS SURPLUS - June 30, 2008 $ 699,483 33 This page intentionally left blank.. 34 REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Santa Clarita Redevelopment Agency Fiscal Year: 2009 ID Number: 13981983600 Submitted by: Signature Name (Please Print) Title Date Per Health and Safety Code section 33080, this report is due within six months after the end of the fiscal year. The report is to include two (2) copies of the agency's component unit audited financial statements, and the report on the Status and Use of the Low and Moderate Income Housing Fund (HCD report). To meet the filing requirements, all portions must be received by the California State Controller's Office. To file electronically: 1. Complete all forms as necessary. 2. Transmit the completed output file using a File Transfer Protocol (FTP) program or via diskette. 3. Sign this cover page and mail to either address below with 2 audits and the HCD report. Report will not be considered filed until receipt of this signed cover page. Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section P. O. Box 942850 Sacramento, CA 94250 To file a paper report: 1. Complete all forms as necessary. 2. Sign this cover page, and mail complete report to either address below with 2 audits and the HCD report. Express Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section 3301 C Street, Suite 700 Sacramento, CA 95816 Supplement to the Annual Deport of Community Redevelopment Agencies Redevelo ment Agency ID Number: 13981983600 Name of Redevelopment Agency: Santa Clarita Redevelopment Agency Mark the appropriate box below to indicate the ending date of your agency's fiscal year. Report data for that period only. r -J September 2008 F December 2008 M June 2009 Return this form to the California State Controller's Office. If you have any questions regarding this form, please contact: U.S. Bureau of the Census, Shannon Doyle, 1-800-242-4523 A. Personnel Expenditures Report your government's total expenditures for salaries and wages during the year, including amounts paid on force account construction projects. Z00 1 $ 250,617 B. Mortgage Revenue Bond Interest Payments Report your government's total amount of interest paid on mortgage revenue bonds during the year. U20 $ 0 U.S Bureau of the Census — Revised 3/2009 m k2k2l� (!!!!!!!!E �E E E E E E;; §E2222 !!! am§ � @ _ CD k ; \ f� �$0N m k2k2l� (!!!!!!!!E �E E E E E E;; §E2222 !!! 16 Es .o �1O❑ m O o � cNa 5 y c y O N t A E129 p F m m � o 5 LL= a y 5 c c ¢^¢ S m$ v "¢ m a = C c c nm c n E ¢� cE `o oE= c U N U C-) . L 0 U Tn TC O .00< oU nt0 TO cc Oi 3U' joN ¢�c_o12 Q cpo O �2'a o �— nc oin m cm'� Z:% aE o.m mm5' m m ¢E nio a c �U O� E m 0 a Y a)a d C� �L U N= yNN 6N W 5 atm O`er O a�y� 0 n ' 'p lLL K z C y N O o U a U 6 LL 3 m __ .w �m 3xo> 5 .w m a i� P a d A Q U d O IL 0 E LL C y o J O o v w y c Z o t t C N C_ 0 G O C ~ N y N0 n E C ao m'o w�1Oc i R E o N 4 �� m M m > o o m m N m N m E um m > � m a m z d a m d y ami u =) o C W O R E Z� \ 27 E �'A § 2§ .■ ( ■� f � . k m § ® ■ � § 5 i ¢ ■ \ 2§ _ J ƒ ; C = CL 22 0- ) x� _ ' 2 ■ ! 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The report is to include two (2) copies of the agency's component unit audited financlal statements, and the report on the Status and Use of the Low and Moderate Income Housing Fund (HCD report). To meet the filing requirements, all portions must be received by the California State Controllers Office. To file electronically: 1. Complete all forms as necessary. 2. Transmit the completed output file using a File Transfer Protocol (FTP) program or via diskette. 3. Sign this cover page and mail to either address below with 2 audits and the HCD report. Report will not be considered filed until receipt of this signed cover page. Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section P. O. Box 942850 Sacramento, CA 94250 To file a paper report: 1. Complete all forms as necessary. 2. Sign this cover page, and mail complete report to either address below with 2 audits and the HCD report. Express Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section 3301 C Street, Suite 700 Sacramento, CA 95816 Supplement to the Annual Report of Community Redevelopment Agencies Redevelopment A enc ID Number: 13981983600 Name of Redevelopment Agency: Santa Clarita Redevelopment Agency Mark the appropriate box below to indicate the ending date of your agency's fiscal year. Report data for that period only. r September 2008 r December 2008 F' June 2009 Return this form to the California State Controller's Office. If you have any questions regarding this form please contact: U.S. Bureau of the Census, Shannon Doyle, 1-800-242-4523 A. Personnel Expenditures Report your government's total expenditures for salaries and wages during the year, including amounts paid on force account construction projects. Z00 $ 250,617 B. Mortgage Revenue Bond Interest Payments Report your government's total amount of interest paid on mortgage revenue bonds during the year. U20 1 $ 0 U.S Bueau of the Census — Revised 32009 Ab T OOOOOOO- E m z J L> LL 611 Y `o a a a a a a a a m E E E E E E E E E u i i 2 i f i i g W aF 0 O1 M � p� L U a � a Q n " O y� 2 m U N v Q � r N e � O _ r | » KA { !!! ®; - k ` § / 8 ;/a » ; _ ,! ! _ !@!, ( \ ;t) ( ! | /\, » } %J ( k! !� _m\2 ! !k ) /2 \ ƒk \ 0 k \ �\ \ E am /\(/ )/ | � �0 k3 \ k) �\ .=«! # {! ! )k ) 2M ! [£ /})/ -- { ly 0 N LL E c J i N c E a a � 0 s -1 ?r. CL` O 0 E J E f a W m 0 n O o Z 0 Y K C W � Q 0 CL Z a n 0 -1 ?r. CL` O 0 E J E f a W 0 `a `o E £ c c o > y ° c r « U> y y r s O D c oc '"w_ND v=v mono a10iv=ac>w€ gaocF oty Eat�m m� yo3ti n! 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C 5 a 'C > > y m W 5 am % a J 7 5 N E 0 o o N a; ?: Qi W y o E0E o ii o y d Q Q Q O m O 6 y amy++ a Q p a o n n �' .� .1� _ t E$ n n n c n m ILL m i a a` a' 2 2 ¢¢ S a a` a` a E U u d E TROM C ^% A � W d N Q N N y n c d x c d o n d N 4? N Q c c c¢ 0 QE y K x d C d E N= C a N c d F d d` V) a` co 5¢ in 0 $ co X TA E r I « f A c 00 ; co co 6 'O C « IL a v d y � O � C y W d a y a d m d rn C o Z mt m J i d• A � N .0 W m d ��+t J VI � O N C E N Y' C N ❑ ` d i J yU A C d% A yCy C m C a O m a W M.2 J c A A IL w N J O.d C U N j W aq m 4 L uC C N L N L d y a d by a � yo c a d.Va U O d d d X O 0 d L m �f d d 0 0 0 m c $ � fnx 0 oL o P yam v a 1 71 m a O Q i U) C >1 O U �5 u A N C C � d H E m CL U O C > c N LL d N d 10 � U Q d f/7 Ea O c S I d N n Q d 3 � O N U V m N W n � p d O C y Na E m m �o o d N a w f U Qj Y N Y N d N C LL W N Y C O y W N O O O w ito L d q� Q N 2 o n o N m � � � m Na N a w f Qj Y N g LL a N ffi N N m E Y U � � c o c O W m N N C C w O W Y N d W d 1! C ~ ~ LL C C C 3 £ E E cd c d J 6 G K 6 K O ~ O H O H Ro 0 Q d W C O V m N C A H eo .v C m c LL U) A) 0 c m rn a c d E C 0 d d a d g v a '^ c � m m N C d U � C c j F > O O N LL K y ma O O y w y Tao o utn9 `o E c `m LD an .2 m a u N c G c m p m 5 c c < 9 e hi�c y o Q W Xr c X � a a O w w a` s a a ■ \ {$ _ _ 2 \{ �) { k$) 3 ! ; } \0 ■ \ {$ _ _ 2 \{ �) ■ u R E O n n p d a d 0 m a LL c m m c n 0 U m d U LLNN d C V a N C e d 01 d D t d 2 A d 1] C O dCL y d O C LL N coy d N O L f v Y jp C a O m N d G m m U 0 J N o ogE o a OT5m O o m d v m d y m f U J Q S H o£>>> J O 8 O 0 5 � C m H w 5 J 1 LL Q r �r E n n M (� � m N N N N r O M � Im n m V m r W O �p N O f I� M I � a d LL d ry N r y� �a d c� m r c a n � o m J � V� m� O � E n n M (� � m N N N N a r V m �p N r n � V� � a x LL C N N LM R O N C d .� N d N D � y C a m = w c W m V w J m Y a E r m m w an d Tj m t j i N VI F H o w c m E g c E 0 W S Q LL LL LL 7 a /! \/) \ , ƒ B ) 0 ] E $ � \ m � f � k ® ) ) ! ! , E 0 § | ! | ! ) § 2 f E = ƒ 0 5 0 3 ;; §{ Em )/ m c d N M :lam tl� s c O m d LL H C j 6 N v d m N ~ u H m m K m J d N N y � m _ m U' c m LL m d d m U' LL O m = � m L p O F s v O CL N w N C O C U N N �_ ❑7 C H L W CL A E x v_ Lu a V v o C O R A O d C y U w w E d N U X C �_ R C 0 C n Q d % U E w R � w = E R N a� d dit 10 10 10 iM O cG m C o N r r Vf p m N LL `a L_ vii N voi m O � m > > acLL O D N OI � m y� C 9 q q _U ry N O N m c C � N m y A O=C � N m LL U� u o a 30 O N m E O c J m C O c `�+ o C U o o m U 0 N 0 EA 0 to �a m ry a z 0 a h � z rc m H p aco� m w m o �� LL mLL 10 10 10 iM O O O O O VJ fA Vf fA f9 N LLLLLLLLLL LL O D OI d y� C 9 q q _U ry N O N m c C N m y A � N Q o m v a u o a w n V N m E O c q m O c `�+ o C U o o V E m N H O N C O N02 a N a e a ry a z 0 a o z rc m H p aco� m w m o �� LL N m ~ M M f9 d � M W EA (7 EA if9 i9 - Ni F9 49 I9 fA f9 Vi N .lip a > Cm e jo c o 0 0 0 M o 0 0 0 o m �n v J Ilo C U lO OS c U l d Y m J Y1 w _ ELL Q '0 o 0 l00 d CL m x a W Q• V aa O C C C Z 0 rn a m A O m U L m N h h > m _ y LL E d W V d d v O r U y O a C 10 �I X� N pl O O U w E CU �,. U) N U O d N O E m q d F m ° N J « u ° o C N N q O '� LL N o OS : m E C O C d m L q T L u a m m ; � m. m u m m m m = X J u LL N d O L O H m q H m m C U U = O H X> W O LL � a H N u Q y m`ma c0 y w UT, I Q C y m m N O U y F- C f m » LL 0 jpW c Q.0 .0y J O c _ � A I 16 U +' C 0 O c m N p) C C U Q d m c d LL u I C c d E N y m w w ei ei n' 0 m 'm r CO�n w N O > N d LJ Q 3 y m m m o m y m N c � E rn m 'o 'm° w c w « o OI C y m J K Ix O O w m O m H m F m J LL y x ° o m � a x a x m : ° m n _y O F f N u q C W 0 ti ^. d a Lol {.aro� We *I rlfyrj Jf FIIX California CITY OF SANTA CLARITA (CALIFORNIA) COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 PREPARED BY THE ADMINISTRATIVE SERVICES DEPARTMENT CITY OF SANTA CLARITA, CALIFORNIA City of Santa Clarita Comprehensive Annual Financial Report For the year ended June 30, 2009 Table of Contents Page INTRODUCTORY SECTION Letterof Transmittal................................................................................................................................................. i GFOA Certificate of Achievement for Excellence in Financial Reporting ........................................................vii Officials of the City of Santa Clarita.......................................................................................................................viii OrganizationChart....................................................................................................................................................ix Mapof the City of Santa Clarita..............................................................................................................................x FINANCIAL SECTION Independent Auditors' Report..... 1 Management's Discussion and Analysis (Unaudited)......................................................................................3 Basic Financial Statements: Government -wide Financial Statements: Statementof Net Assets...............................................................................................................................19 Statementof Activities.................................................................................................................................20 Fund Financial Statements: Governmental Fund Financial Statements BalanceSheet..........................................................................................................................................24 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets.....................................................................27 Statement of Revenues, Expenditures and Changes in Fund Balances.............................................................................................................28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets...................................................................30 Proprietary Fund Financial Statements: Statementof Net Assets........................................................................................................................33 Statement of Revenues, Expenses and Changes in Fund Net Assets.............................................34 Statementof Cash Flows.......................................................................................................................35 Fiduciary Fund Financial Statements: Statementof Net Assets........................................................................................................................39 Notes to Basic Financial Statements...............................................................................................................41 City of Santa Clarita Comprehensive Annual Financial Report For the year ended June 30, 2009 Table of Contents, Continued FINANCIAL SECTION, Continued Required Supplementary Information (Unaudited)..................................................................................81 Notes to Required Supplementary Information......................................................................................82 Budgetary Comparison Schedule: GeneralFund..........................................................................................................................................83 Bridge and Thoroughfare Special Revenue Fund.............................................................................84 Developer Fees Special Revenue Fund...............................................................................................85 Open Space Preservation District Special Revenue Fund................................................................86 Supplementary Information: Non -Major Governmental Funds: Description of Nonmajor Governmental Funds......................................................................................91 CombiningBalance Sheet............................................................................................................................94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................100 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Bikeway Special Revenue Fund...........................................................................................................105 Gas Tax Special Revenue Fund............................................................................................................106 Park Dedication Special Revenue Fund..............................................................................................107 Proposition A Special Revenue Fund.................................................................................................108 Special Assessment Special Revenue Fund........................................................................................109 State Park Special Revenue Fund........................................................................................................110 TDASpecial Revenue Fund.................................................................................................................111 Traffic Safety Special Revenue Fund...................................................................................................112 CDGBSpecial Revenue Fund...............................................................................................................113 AQMDSpecial Revenue Fund.............................................................................................................114 Landscape Maintenance District # 1 Special Revenue Fund ...........................................................115 Stormwater Utility Special Revenue Fund.........................................................................................116 Miscellaneous Grants Special Revenue Fund....................................................................................117 Federal Urban Aid Special Revenue Fund............................:............................................................118 BJA Law Enforcement Special Revenue Fund...................................................................................119 Supplemental Law Grant Special Revenue Fund..............................................................................120 HOMESpecial Revenue Fund.............................................................................................................121 Library Facility Fees Special Revenue Fund......................................................................................122 Public Education and Government Special Revenue Fund.............................................................123 Proposition C Special Revenue Fund..................................................................................................124 Federal Grants Special Revenue Fund................................................................................................125 City of Santa Clarita Comprehensive Annual Financial Report For the year ended June 30, 2009 Table of Contents, Continued FINANCIAL SECTION, Continued Internal Service Funds: Combining Statement of Net Assets..........................................................................................................128 Combining Statement of Revenues, Expenses and Changes in Net Assets.........................................129 Combining Statement of Cash Flows........................................................................................................130 Fiduciary Funds: Combining Statement of Fiduciary Assets and Liabilities.....................................................................132 Schedule of Changes in Fiduciary Assets and Liabilities - All Agency Funds ...................................133 STATISTICAL SECTION (Unaudited) NetAssets by Component........................................................................................................................................137 Changesin Net Assets..............................................................................................................................................138 Fund Balances of Governmental Funds.................................................................................................................140 Changes in Fund Balances of Governmental Funds............................................................................................142 Assessed Value and Actual Values of Taxable Property.....................................................................................144 Assessed Value - Taxable Property........................................................................................................................148 Assessed Value - Use Category Summary............................................................................................................150 Direct and Overlapping Property Tax Rates.........................................................................................................151 PrincipalProperty Tax Payers.................................................................................................................................153 Property Tax Levies and Collections......................................................................................................................155 Ratiosof Outstanding Debt by Type......................................................................................................................156 Ratio of General Bonded Debt Outstanding..........................................................................................................158 Directand Overlapping Debt..................................................................................................................................159 LegalDebt Margin Information..............................................................................................................................160 Pledged- Revenue Coverage..................................................................................................................................162 Demographic and Economic Statistics...................................................................................................................163 PrincipalEmployers..................................................................................................................................................164 Full -Time and Part -Time City Employees by Function.......................................................................................165 OperatingIndicators by Function...........................................................................................................................166 Capital Asset Statistics by Function........................................................................................................................167 City of SANTA CLARITA 23920 Valencia Boulevard • Suite 300 • Santa Clarita., California 91355-2196 Phone: (661)259-2489 a PAA: (661)259-8125 www.sanm-clariraxom December 17, 2009 Honorable Mayor, Mayor Pro Tem, and City Councilmembers: The Comprehensive Annual Financial Report (CAFR) of the City of Santa Clarita for fiscal year ended June 30, 2009 is hereby submitted, in accordance with Chapter 2.12 of the City of Santa Clarita Municipal Code. This report provides the City Council and the public with an understanding of the financial condition of the City of Santa Clarita as of June 30, 2009. This report consists of management's representations concerning the finances of the City of Santa Clarita. As such, management assumes full responsibility for the completeness and reliability of the information contained in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive framework of internal controls that is designed to protect the City's assets from loss, theft or misuse, and to compile sufficient reliable information for the preparation of the City's financial statements. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City of Santa Clarita. State Law requires the City to prepare an annual financial report. This report fulfills that obligation. Caporicci & Larson, Certified Public Accountants, an independent firm of certified public accountants, has issued an unqualified "clean" opinion on the City of Santa Clarita's financial statements for the year ended June 30, 2009. The independent auditor's report is located at the front of the financial section of this report. The CAFR has been prepared in conformity with Generally Accepted Accounting Principles (GAAP) and with the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB). These reporting requirements specify that management provide a narrative introduction, overview, and analysis to accompany the financial statements in the form of a Management's Discussion and Analysis (MD&A). The MD&A, which immediately follows the independent auditor's report, complements this letter of transmittal and should be read in conjunction with it. Also, as a recipient of federal and state financial assistance, the City is required to have a "Single Audit" performed by our independent audit firm. The Single Audit was designed to meet the special needs of the federal grantor agencies. The standards governing the Single Audit engagements require that the independent auditor report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. 0 ' CITY PROFILE The City of Santa Clarita officially incorporated on December 15, 1987 as a General Law City, and operates under a City Council/City Manager form of government. Located 35 miles northwest of downtown Los Angeles and 40 miles east of the Pacific Ocean, between Interstate 5 and State Highway 14, Santa Clarita forms an inverted triangle with the Santa Susana and San Gabriel mountain ranges. Encompassing the communities of Canyon Country, Newhall, Saugus, and Valencia, Santa Clarita covers approximately 52 square miles. With a population of over 180,000, the City is the 26th largest city in the State of California. Santa Clarita residents enjoy an expansive year-round parks and recreation network, featuring 20 beautiful parks totaling 250 acres, and more than 60 miles of picturesque trails and paseos designed for commuting and recreational use, including walking, riding, jogging, and skating. With its unique blend of rural, old west heritage, and urban sophistication, this fast-growing City has established an enviable balance between quality living and growth. Santa Clarita has attracted regional and national sports events like the AT&T Champions Classic, Amgen Tour of California, Volcom Skate Park event, Southern California Junior Olympics, and the 2009 Western States Police & Fire Games. The City of Santa Clarita's five City Councilmembers are elected at large to four-year overlapping terms, with elections held bi-annually. The position of Mayor is selected from among the Councilmembers. The governing Council is responsible, among other things, for passing ordinances, adopting the budget, setting policy, and appointing committees. The City Council appoints the City Manager, who is responsible for carrying out the policies and ordinances of the Council, overseeing the day-to-day operations of the government, and for appointing the various Department Heads. The City Council also appoints the City Attorney. The City provides, either directly or under contract, a full range of municipal services including public safety, construction, maintenance of streets and other infrastructure, public works, parks and recreation, community development, and cultural events. The City also provides services through the Santa Clarita Redevelopment Agency (RDA) and the Santa Clarita Public Financing Authority (PFA), which are blended component units of the City of Santa Clarita. The financial activities of these entities are included on this report as their activities are under the control of the City. Separate component unit reports for each entity are also available. The City operates on a fiscal year basis which begins July I and ends June 30. The City's Municipal Code requires the City Manager to prepare a budget and present it to the City Council each year. The budget process begins by January of each year and is carried out under the direction of the City Manager in cooperation with the various City departments. The proposed operating and capital budget is submitted by the City Manager to City Council for adoption by June 30, to take effect at the beginning of the fiscal year on July 1. Budgetary control for the City is maintained through its accounting systems. Once adopted, the budget may be amended throughout the year as necessary. Budgetary control is established at the function or program level within each fund. ll LOCAL ECONOMY Located minutes from the Bob Hope Airport in Burbank, the City of Santa Clarita enjoys a prime position in north Los Angeles County and is one of Southern California's most sought-after places to live and to do business. City officials pride themselves on the organization's ability to balance the needs of locally based companies with those of the community, resulting in an unmatched quality of life that is quintessentially California. The instability of national and world financial markets in the last fiscal year heightened awareness of city programs and budgets throughout the state. The City has a 100 percent track record for adopting a balanced, on-time budget, with ample reserves and contingency funds. Santa Clarita is proud to share Fiscal Year 08-09 was successful and stable for the City. Earlier this year, the City's bond rating advanced to AA+ by Standard & Poor's Ratings Service (S&P). Per Standard & Poor's, this upgrade is representative of the City's strong economic stability, strong financial performance, and good management practices. The S&P report further states "The city is characterized by, in our opinion, very strong wealth and income levels. The market value per capita is $129,056 and median household income is 159% of the national average." Santa Clarita boasts one of the lowest unemployment rates in Los Angeles County at 7.0 percent, compared to 11.4 for Los Angeles County and 11.6 percent for the state of California. Targeted employment sectors in Santa Clarita include aerospace, biotechnology, entertainment, and technology. Several noted and internationally recognized brands are based in the Santa Clarita Valley opened new operation centers or expanded existing facilities in the last year including, Advanced Bionics, Boston Scientific, Bioness, Princess Cruises, Pharmavite, Aerospace Dynamics International, Santa Clarita Studios, and more. While prudent fiscal planning on behalf of the City of Santa Clarita City Council has lessened the affect of the global economic slowdown, which has devastated some local communities, the City was not immune to the hardships of the recession. On April 28, 2009, the City of Santa Clarita City Council unanimously approved the 21 -Point Business Plan for Progress. This program, which includes more than $5 million dollars of investment in results - driven initiatives to stimulate the economy at the local level, was developed at the request of the City Council and designed with input from several key industry liaisons and business -minded community organizations, including the Santa Clarita Chamber of Commerce, College of the Canyons, and Valencia Industrial Association. The City's entertainment industry enjoyed many successes in the year, with FY 08-09 resulting in an economic impact of nearly $21 million to local businesses from location filming alone. Santa Clarita is home to more than 20 sounds stages and 10 movie ranches and hundreds of film related businesses. Five network television shows, including HBO's "Big Love," CBS's "The Unit," and "NCIS," and ABC's Family "Make it or Break it" and "10 Things I Hate About You," base in Santa Clarita and regularly film on location in the City. iii Tourism continues to be one of the City of Santa Clarita's largest economic generators contributing more than $2.3 million to the general fund from Transient Occupancy Tax (T.O.T.). Attraction of regional and national sports tourism events like the AT&T Champions Classic, Amgen Tour of California, Volcom Skate Park event, Southern California Junior Olympics, and the 2009 Western States Police & Fire Games, generates additional visitors in Santa Clarita and increased revenue for the City and its businesses The City of Santa Clarita has developed and is implementing programs to help existing businesses succeed while also initiating programming designed to grow targeted business sectors in the coming years. Los Angeles Economic Development Corporation (LAEDC) recently named the City of Santa Clarita the most business -friendly city in the county. Santa Clarita was named one of the Top 25 City Retail Markets in California by the California Retail Survey for the second consecutive year, and new retail centers such as Bridgeport Marketplace and Plaza at Golden Valley are anchored with strong retailers like Bristol Farms, Lowe's, Kohl's, and Target. The City's continued control of expenditure growth is a key factor in maintaining the City's strong financial position. The City of Santa Clarita continues to use business attraction and retention programs like the Enterprise Zone Program to support business by providing tax incentives to businesses located within the zone. The Santa Clarita Enterprise Zone encompasses 97 percent of all commercial and industrial zoned property in the City, including both existing and proposed development areas, and has proven to be a powerful business attraction and retention tool. To date, Santa Clarita Enterprise Zone staff has issued over 792 employee vouchers to businesses in Santa Clarita as part of the Enterprise Zone program, potentially saving local employers over $28 million because of tax credits. Santa Clarita recognizes the important role education plays in the success of the community. The City is home to three premier colleges, including California histitute of the Arts (CalArts), College of the Canyons, and the Masters College, all of which offer world-class instruction and programming that prepares students to become the next generation of business professionals and leaders. Santa Clarita was named one of the best communities for young people by America's Promise, the nation's largest private -public partnership. LONG -TERM FINANCIAL PLANNING Santa Clarita's well-planned community is home to more than 180,000 residents and is consistently ranked one of California's model cities, boasting the essential elements needed for well-balanced living and total wellbeing. Santa Clarita ranks as one of the safest cities in California among cities with populations exceeding 150,000. Santa Clarita is home to a well-educated population, with more than 61 percent of adults over age 25 and older having attained some college or higher, as compared to Los Angeles County, which averages 43 percent. The City of Santa Clarita has experienced continuous growth since its inception in 1987 and City officials work directly with the private and public sectors to attract new businesses to the Santa Clarita Valley. This year the City was successful in attracting Advanced Bionics to locate in the City that added 350 high -paying jobs. The City of Santa Clarita is focused on retaining existing companies and encouraging their growth within the City, while working to attract new business, thereby creating new jobs for residents. Santa Clarita has set an aggressive goal of creating two jobs for every household, providing increased opportunities for residents to work close to home. iv The current economic downturn has directly affected the City's revenue growth, producing decreases in sales tax and real property transfer tax revenues. However, the City's property tax, property tax in - lieu of Vehicle License Fee (VLF), and TOT have all increased for Fiscal Year 08-09. Millions Major Tax Revenues 35 30 ■ Sales Taxes 25 ■ Property Taxes 20 O VLF 5 ❑ Transient Occupancy Taxes ■ Real Property Transfer 10 Tax 5 0 2004-05 2005-06 2006-07 2007-08 2008-09 Fiscal Year The City provides necessary funding for essential services for City Council and community identified priorities, while taking steps to ensure the City remains in good financial health. Annually, the City prepares extended forecasts for the General Fund to determine the future impact of current actions. These forecasts indicate a flat or stable General Fund over the next few years, primarily due to projected decreases in sales, property taxes, and property taxes in lieu of VLF. However, because the City of Santa Clarita has practiced smart growth in successful times, the City is well prepared for these times when revenue projections do not include growth. The City maintains a General Fund balance sufficient to provide for various identified contingencies, as well as an established operating reserve. In addition, the General Fund contributes annually to the City's facilities replacement fund, which provides for major maintenance and replacement of infrastructure and capital improvements. The City's Capital Improvement Program (CIP) is a component of the annual budget process that addresses the City's short -and -long-term capital needs. Just as important, the CIP emphasizes a plan of action that effectively maintains the existing infrastructure to a sound physical standard, as well as providing new facilities to support current growth and complement new development. V MAJOR MILESTONES IN FISCAL YEAR 2008-2009 ❖ Santa Clarita was named "the most Business Friendly City," in Los Angeles County by the Los Angeles Economic Development Corporation (LAEDC), citing the City's many business -friendly practices and policies including, no utility user tax, no business license tax, and Santa Clarita's state designation as an Enterprise Zone. ❖ The City celebrated major milestones in 2009 including the grand opening of the new state-of-the- art 40,000 square -feet Skate Park and Sports Complex expansion, the Magic Mountain Parkway/Interstate 5 expansion project complete after a three-year span, and Phase one of the Old Town Newhall Streetscape transformation project of Newhall's Main Street. On January 26, 2009, the City held a special groundbreaking event for the last phase of the Cross Valley Connector project. This final phase of the roadway involves construction of two bridges, north and south bound. Each bridge is 1,100 feet long and will provide for six lanes of roadway. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting, to the City of Santa Clarita for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2008. This was the twentieth consecutive year the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy GAAP and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the requirements of the GFOA Certificate of Achievement Program, and we are submitting it to GFOA to determine its eligibility for another certificate. This report is a joint effort by many people from many different areas of responsibility. The preparation of this report could not have been accomplished without the hard work and team effort of the Finance Division. I would like to express my appreciation to all members of the Division who assisted and contributed to its preparation. I would also like to thank the Mayor, Mayor Pro Tem, Councilmembers, City Manager Ken Pulskamp, Assistant City Manager Ken Striplin, Director of Public Works Robert Newman, Director of Parks, Recreation and Community Service Rick Gould, and Director of Community Services Paul Brotzman, for their continuing efforts in administering the financial operations of the City in a conservative and responsible manner. Sincerely, Darren Hernandez, Deputy City Manager Vi 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, 2008 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. PNCE 0Ffig iF IM W�NI1FOSt�Yn 00 DANA°" w President tQPPOFdigN MICA60 Executive Director vii OFFICIALS OF THE CITY OF SANTA CLARITA As of June 30, 2009 City Council Frank Ferry MAYOR Laurene Weste MAYOR PRO TEM Laurie Ender COUNCILMEMBER Marsha McLean COUNCILMEMBER Bob Kellar COUNCILMEMBER City Officials Ken Pulskamp CITY MANAGER Ken Striplin ASSISTANT CITY MANAGER Carl Newton CITY ATTORNEY Paul Brotzman DIRECTOR OF COMMUNITY DEVELOPMENT Richard Gould DIRECTOR OF PARKS, RECREATION & COMMUNITY SERVICES Darren Hernandez DEPUTY CITY MANAGER Robert Newman DIRECTOR OF PUBLIC WORKS/CITY ENGINEER j � § ) / O ¥ § 2 3 k ' rig ` \ \ \ 2 R k w @ } - / N R 04 � � S � \ 0 ` j � § ) / O k � § rig ` \ \ § \ } - \ 04 � \ ` k � § rig / \ \ \ } - \ 04 zo u ix / \ - � ix C&L Caporicci & Larson Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California We have audited the accompanying financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (City), as of and for the year ended June 30, 2009, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Subsequent to the basic financial statements date of June 30, 2009 and the year then ended, the State of California (State) has borrowed and proposed taking funds from local governments including the City of Santa Clarita. These actions by the State include: 0 8% of Property Taxes borrowed --to be repaid in 3 years o Redevelopment Agency funds -- prepared to be taken for fiscal year 2010 These above amounts are very significant to the local governments and may affect their ongoing operations. Certain lawsuits are in process to stop such State actions. For more detailed information, see Note 18 in the Notes to Basic Financial Statements. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2009, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with generally accepted accounting principles in the United States. Toff Free Ph: (877) 862-2200 Oakland Orange County 180 Grand Ave., Suite 1365 9 Corporate Park, Suile 100 Oakland, California 94612 Wine, Caefomin 92606 Toll Free F= (866) 436-0927 Sacramento Saa Diego 777 Campus Commons Rd., Suite 200 4858 Mercury, Salle 106 Sacramento, California 95825 San Diego, California 92111 To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 As described in Note 1 to the basic financial statements, the City adopted Statement of Governmental Accounting Standards Board No. 45, Financial Reporting by Employers for Postemployment Benefit Plans Other Than Pensions, No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments and No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2009 on our consideration of the City s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The accompanying Required Supplementary Information, such as Management's Discussion and Analysis, budgetary comparison information and other information as listed in the table of contents, is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the Required Supplementary Information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City's basic financial statements. The accompanying Supplementary Information is presented for purpose of additional analysis and is not a required part of the basic financial statements. The Supplementary Information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Irvine, California December 17, 2009 70 City of SANTA CLARITA 23920 Valencia Boulevard • Suite 300 • Santa Clarita., California 91355-2196 Phone: (661)259-2489 a PAA: (661)259-8125 www.sanm-clariraxom MANAGEMENT'S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2009 This discussion and analysis of the City of Santa Clarita's financial performance provides an overview of the financial activities of the City of Santa Clarita (City) for the fiscal year ended June 30, 2009. Our analysis includes information regarding the City's overall financial position and results of operations to assist users in evaluating the City's financial position, a discussion of significant changes that occurred in funds, and information regarding significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of currently known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the accompanying transmittal letter, the basic financial statements and the accompanying notes to those financial statements. FINANCIAL HIGHLIGHTS • The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $895.6 million. Of this amount, $101.6 million represents unrestricted net assets that may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net assets increased by 1.01 %, primarily as a result of the increase in capital assets. Net assets of the business -type activities increased by $3.6 million, or 5.4%, and net assets of the governmental activities increased by $5.3 million, or .65%. • The capital assets of the City's governmental activities decreased by $11.4 million due to a recording of a prior period adjustment, or 1.6% over last fiscal year. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $155 million. This represents a decrease of $13.6 million as compared to the prior year. USING THIS ANNUAL REPORT The financial statements presented herein include all of the activities of the City of Santa Clarita and its component units using the integrated approach as prescribed by GASB Statement No. 34. The three components of the basic financial statements are as follows: 1) Government -Wide Financial Statements The Government -Wide Financial Statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting in a manner similar to a private -sector business. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt). See independent auditors report. 0 USING THIS ANNUAL REPORT (CONTINUED) 2) Fund Financial Statements The Fund Financial Statements include statements for each of the three categories of activities: governmental, proprietary and fiduciary. For governmental activities, these fund statements tell how these services were financed in the short term, as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government -wide statements by providing information about the City's most significant funds and other funds. 3) Notes to the Basic Financial Statements The notes provide additional information necessary to enable the user to fully understand the various financial statements. In addition to the basic financial statements and notes, this report contains other supplementary information. REPORTING THE CITY AS A WHOLE - GOVERNMENT -WIDE FINANCIAL STATEMENTS The Statement of Net Assets and the Statement of Activities One of the most important questions asked about the City's finances is, "Is the City as a whole better or worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities report information about the City as a whole, and its activities, in a way to answer this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private -sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid. The statement of net assets reports all of the City's assets and liabilities, with the difference between the two reported as net assets. Net assets are one way to measure the City's financial health or financial position. Over time, increases or decreases in the City's net assets are an indication of whether its financial health is improving or deteriorating. Other things to consider are non-financial factors, such as changes in the economy due to external factors that would cause an increase or decrease in consumer spending. The statement of activities presents information relating to how the City's net assets changed during the fiscal year. All activities resulting in changes in net assets are reported when earned or incurred, regardless of the receipt or disbursement of the related transactions cash flows. Some of the revenues and expenses reported in this statement will result in future fiscal period cash flows, such as the receipt of uncollected taxes and the payment of interest expense or compensated absences. In the Statement of Net Assets and the Statement of Activities, we separate the City Activities as follows: Governmental Activities - Most of the City's basic services are reported in this category, including general administration (City Manager, City Clerk, Finance, etc.), public safety, public works, parks and recreation, community services, economic development, planning, and engineering. These activities are distinguished due to the use of property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues to finance these activities. Business -Type Activities - City functions that are intended to be primarily self-supporting through the imposition of user fees and charges are reported in the business -type activity category. Business -type activities for the City consist of transit activities related to the operation of the City's local public transportation system. See independent auditors report. C! REPORTING THE CITY AS A WHOLE - GOVERNMENT -WIDE FINANCIAL STATEMENTS (CONTINUED) Component Unit Activities - The City of Santa Clarita is the primary government unit to two legally separate entities. The financial activity and data of the Santa Clarita Public Financing Authority and the Redevelopment Agency of the City of Santa Clarita have been accounted for within the funds of the City, and therefore separate component unit financial information is not presented within the financial statements. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS - FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts used to account for and accumulate financial information related to a specific activity or objective. Some funds are required to be established by State law and bond covenants; however, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other resources. The fund financial statements provide detailed information about the most significant funds and other funds - not the City as a whole. The City's three types of funds are governmental, proprietary, and fiduciary. Governmental Funds - Most of the City's basic services are reported in governmental funds. Governmental funds financial statements focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called "modified accrual" accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because the focus of the governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for the governmental activities in the government - wide financial statements. Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by this integrated approach. The City reports governmental fund financial information within 33 governmental funds. The general fund, bridge and thoroughfare fund, developer fees fund, open space preservation district special revenue fund, capital projects -redevelopment agency fund, and debt service -redevelopment agency fund are presented separately as major funds in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. Financial data for the remaining 27 governmental funds are combined into a single, aggregated presentation. Supporting financial information on each of the other governmental funds is also provided within the report. Proprietary Funds -The City maintains two different types of proprietary funds. When the City charges customers for the services it provides, these services are generally reported in a type of proprietary fund known as an enterprise fund. Enterprise funds are used to report the same functions presented as business - type activities in the government -wide financial statement, but the proprietary fund statements provide more detail and additional information, such as a statement of cash flows. The City uses the transit enterprise fund to account for the activities related to transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses four internal service funds to account for costs related to self- insurance, computer replacement, vehicle replacement, and public facilities replacement. See independent auditors report. 5 REPORTING THE CITY'S MOST SIGNIFICANT FUNDS - FUND FINANCIAL STATEMENTS (CONTINUED) Proprietary funds are reported in the same way all activities are reported in the Statement of Net Assets and the Statement of Activities. The proprietary fund financial statements provide separate information for the transit enterprise fund, which is considered to be a major fund of the City. All of the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section of this report. THE CITY AS TRUSTEE - FIDUCIARY FUND STATEMENTS Reporting the City's Fiduciary Responsibilities The City is the trustee, or fiduciary, for certain funds held for the benefit of other parties outside of the City. The City's fiduciary activities are reported in separate Statements of Fiduciary Assets and Liabilities. These activities were excluded from the City's other financial statements, because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. NOTES TO THE BASIC FINANCIAL STATEMENTS The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. OTHER INFORMATION In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the comparison of budget and actual results for the major governmental funds. Required supplementary information can be located on pages 81-88 of this report. The combining statements referred to earlier in connection with the other governmental funds, internal service funds, and fiduciary funds are presented immediately following the required supplementary information described in the previous paragraph. Combining and individual fund statements and schedules, as well as schedules related to the capital assets used in the operation of governmental funds, can be found on pages 91-133 of this report. THE CITY AS A WHOLE The analysis below focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City's governmental and business -type activities. The City's net assets may be analyzed and used as an indicator of the City's overall financial condition. The City's combined net assets increased by $8.9 million, increasing from $886.7 million to $895.6 million. There was a prior period adjustment of $26 million recorded in FY09. See independent auditors report. THE CITY AS A WHOLE (CONTINUED) ASSETS: Current and Other Assets Capital assets TOTAL ASSETS LIABILITIES: Long Term Liabilities Other Liabilities TOTAL LIABILITIES NET ASSETS: Invested in capital assets, net of related debt Restricted Unrestricted TOTAL NET ASSETS TABLET CITY OF SANTA CLARITA'S NET ASSETS Governmental Activities Business -type Activities Total 2009 2008 2009 2008 2009 2008 $ 272,202,340 $ 268,634,435 $ 6,580,204 $ 6,416,378 $ 278,782,544 $ 275,050,813 711,663,024 723,115,624 66,963,851 64,396.391 778,626,875 787,512,015 983,865,364 991,750,059 73,544,055 70,812,769 1,057,409,419 1,062,562,828 84,375,842 86,790,293 248,304 485,304 84,624,146 87,275,597 73,940,786 58,758,162 3,213,808 3,843,612 77,154,594 62,601,774 158,316,628 145,548,455 3,462,112 4,328,916 161,778,740 149,877,371 629,621,720 672,306,820 66,963,851 63,526,242 696,585571 735,833,062 97,414,312 107,644,883 - - 97,414,312 107,644,883 98512,704 66,249,901 3,118,092 2,957,611 101,630,796 69,207,512 $ 825,548,736 $ 846,201,604 $ 70,081,943 $ 66,483,853 $ 895,630,679 $ 912,685,457 The City's Net Assets is made up of three components: Investment in Capital Assets (Net of Related Debt), Restricted Net Assets, and Unrestricted Net Assets. As of June 30, 2009, assets exceeded liabilities by $895.6 million. The largest component of the City's net assets, 78.0%, is represented by its $697 million investment in capital assets (e.g., infrastructure, land, buildings and improvements, equipment, and construction in progress) less any related outstanding debt used to acquire the assets. These capital assets are used to provide services to the citizens, and therefore, are not available to finance future operations. h1 addition, resources necessary to repay the related debt must be provided by sources other than the capital assets, as the assets themselves cannot be used to satisfy these liabilities. An additional portion of the City's net assets, 10.9%, represents resources subject to external restrictions on how they may be used. The remaining 11.3% of unrestricted net assets, $101.6 million may be used to meet the City's ongoing obligations to citizens and creditors. Consistent with the prior year, at the end of the current fiscal year, the City is able to report positive balances in both categories of governmental and business -type net assets. Net assets for governmental activities increased by $5.3 million over the prior year, $11.4 million of which is represented by decreased capital assets due to the recording of a prior period adjustment and reductions in their related debt. Increase in capital assets and decrease in total liabilities accounted for the majority of the overall increase in net assets for business -type activities of $3.6 million. The unrestricted portion of the business -type activities increased by $160,481. See independent auditors report. THE CITY AS A WHOLE (CONTINUED) Governmental Activities Revenues from governmental activities were down by $2.3 million or -1.31%. The cost of all governmental activities this year was $158.7 million, an increase of 30.27% over the past year. However, as shown in the Statement of Activities, the governmental activities expenses were ultimately financed in part by the taxpayers, as $41.7 million in revenues were generated by service revenues received from the performance of these activities; another $9.9 million was received from government agencies and other organizations that subsidized certain programs with operating grants and contributions; and another $38.8 million in revenues was generated from capital grants and contributions. Community Development programs were the only activities that generated net revenues of $32.6. Overall, the City's governmental program and general revenues amounted to $172 million, which funded the expenses and resulted in a $5.3 million increase in net assets. Part of the $172 million program and general revenue is other non -program governmental revenue amounting to $82 million that the City realized this past year. See independent auditors report. 3 THE CITY AS A WHOLE (CONTINUED) TABLE2 CITY OF SANTA CLARITA'S CHANGES IN NET ASSETS Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues Taxes: Property taxes, levied for general purposes Other Taxes Grants and contributions not restricted to specific programs Other Total Revenues General government Public safety Public works Parks and recreation Community development Unallocated infrastructure depreciation Interest on long term debt Transit Total Expenses Government Activities 2009 2008 $ 41,768,203 $ 35,601,495 9,931,109 22,600,793 38,785,876 39,003,536 26,820,068 24,482,930 45,876,287 46,866,631 Business -type Activities 2009 2008 Total 2009 2008 $ 3,299,263 $ 3,216,239 $ 45,067,166 $ 38,817,734 13,653,177 11,876,720 23,584,286 34,477,513 - 617,421 38,785,576 39,620,957 - - 26,820,068 24,482,930 - - 45,876,287 46,866,631 1,015,413 1,252,281 - - 6,020,940 1,252,281 7,893,380 4,566,884 938,901 48,961 3,826,754 4,615,845 48,514,645 30,549,888 - - 48,514,645 172,090,036 174,374,550 17,891,341 15,759,341 189,981,379 190,133,891 30,094,380 27,488,731 - - 30,094,380 27,488,731 17,489,870 16,482,917 - - 17,489,870 16,482,917 48,514,645 30,549,888 - - 48,514,645 30,549,888 32,747,618 21,817,251 - - 32,747,618 21,817,251 9,761,681 9,257,881 - - 9,761,681 9,257,881 14,405,047 13,128,617 - - 14,105,047 13,128,617 5,725,201 3,127,998 - - 5,725,201 3,127,998 - - 22,299,379 21,506,317 22,299,379 21,506,317 46,774,291 158,738,442 121,853,283 22,299,379 21,506,317 181,037,821 143,359,600 Increase in Net Assets before transfers 13,351,594 52,521,267 (4,408,038) (5,746,976) 8,943,556 46,774,291 Transfers (8,006,128) (8,431,120) 8,006,128 8,431,120 - - Increase In Net Assets 5,345,466 44,090,147 3,598,090 2,684,144 8,943,556 46,774,291 Net Assets - Beginning of Year, As Restated (Note 16) 820,203,270 802,111,457 66,483,853 63,799,709 886,687,123 865,911,166 Net Assets - End of Year $ 825,548,736 $ 846,201,604 $ 70,081,943 $ 66,483,8-53 S 895,630,679 $ 912,685,457 See independent auditors report. 9 THE CITY AS A WHOLE (CONTINUED) Business -Type Activities Business -type activities increased the City's net assets by $3.5 million for the current year. Business -type activities revenues increased by $2.1 million during the year for a total of $17.8 million in revenues, not including the $8 million of transfers in from other governmental activities. This was largely due to an increase of $1.7 million in operating grants and contributions. Related transit activity expenses increased by $793,062. THE CITY'S FUNDS, AS RESTATED (Note 16) The governmental funds reported a combined fund balance at the end of the current fiscal year of $155 million, a decrease of $13.6 million over the prior year. In FY08-09, the City recorded a liability amount of $21.3 million for developer credits in the Bridges & Thoroughfare fund. Approximately $90 million is reserved and already committed for specific restricted purposes, and approximately $65 million of the unreserved portion may be used to meet the City's ongoing obligations to citizens and creditors. The total governmental fund balance includes the general fund balance of $73.9 million, an increase of $7.8 million over the prior year. The general fund is the chief operating fund of the City of Santa Clarita. At the end of the current fiscal year, the $32.6 million in reserved general fund balance accounted for 32% of the total reserved governmental fund balance. The unreserved general fund balance of $41.2 million, which is available for spending at the City's discretion, is up by $10 million from prior year. The City's general fund balance has reserved $32.6 million for advances, encumbrances, deposits and prepaid items. More detailed information about the combined fund balance reserves and designations and restatement are presented in Note 11 to the financial statements. Other major fund balance changes are noted below: • The bridge and thoroughfare fund balance has realized a decrease of $19.1 million or 125% from the prior year. This unusual and large decrease in fund balance is due to the recording of liability from developer fee credits. These credits are issued to developers when a particular project has been completed in which developers have contributed portions of bridges and thoroughfares in conjunction with a particular project. • The developer fees fund balance decreased in the current year by $712,474. This is due primarily to an increase in deferred revenues from developers. • The Open Space Preservation District fund realized an increase of $1.2 million this fiscal year. The purpose of this fund is to accelerate vacant land acquisition in and around the City. The total fund balance for the current year is $17.6 million. • Presented separately in the major funds category is the debt service fund - redevelopment agency and the capital projects fund - redevelopment agency. The total fund balance for the current year for the debt service fund - redevelopment agency is a negative $17 million and $37.8 million for the capital projects fund - redevelopment agency. See independent auditors report. 10 THE CITY'S FUNDS, AS RESTATED (Note 16) (CONTINUED) Other major fund balance changes are noted below (continued): In addition to the major funds, the fund balances for the other governmental funds experienced an aggregate decrease of $3.2 million, resulting in an overall 6.6% decrease in other governmental funds' balances. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The total net assets for the transit enterprise fund increased over the prior year by $3.6 million or 5%. This $3.6 million increase was primarily due to the increase in total assets and decrease in total liabilities. The unrestricted portion of the business -type activities net assets increased by $160,000 from prior year. The Internal Service funds net assets decreased by $5.8 million or 23.7%, ending the fiscal year with a fund balance of $18.7 million, of which $17.8 million is unrestricted. General Fund Budgetary Highlights Comparison of the fiscal year 2008-09 original (adopted) general fund budgeted expenditures and transfers of $78.1 million to the final budgeted expenditures of $84.04 million results in a net increase of $5.9 million. Included in this net increase is $1.27 million in committed purchase orders and contracts from the prior June 30 balance, as well as $665,056 of prior fiscal year operating and capital improvement projects approved for carryover into fiscal year 2009-10. The resulting beginning budget balance was equal to $96.6 million. Original Budget + Cont. Appropriations + Encumbrances = Beg. Balance + Supplemental Changes = Final Budget $78,131,694 + $665,056+ $1,272,355 = $96,600,554 + $1,560,339 = $84,039,660 Comparing the beginning budget of $78.1 million with the final budget of $84.0 million indicates the general fund had supplemental budgetary appropriations of $1.56 million during the fiscal year. Included in the supplemental appropriations are the results of this year's budget review. At the mid -year budget review, the City Council approved additional appropriations for non -represented employee cost -of -living salary increases of 2.0%, as well as increased costs related to the City's contribution towards employees' health benefits. During the mid -year budget review, budgeted general fund revenue had a net decrease of $3.1 million. Included in the net decrease is $1.6 million decrease in sales and use tax. At year end, the City's actual revenues are $1.3 million more than the final budgetary estimates. Actual expenditures were less than the final budgetary estimates by over $7.2 million. This was partly due to large infrastructure commitments that were not liquidated at year end and projects that are multi-year. See independent auditors report. 11 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City had $778.6 million (net of accumulated depreciation) invested in a broad range of capital assets. This investment in capital assets includes land, buildings and related improvements, vehicles and equipment, and infrastructure (including infrastructure placed in service prior to July 1, 2002), such as streets, bridges, traffic signals, medians, sidewalks, trails, sewers, curbs and gutters, and drainage systems. (See Table 3) TABLE3 CITY OF SANTA CLARITA'S CAPITAL ASSETS, (net of depreciation) Major capital asset events during the year included: • Completion of the I-5/Magic Mountain Freeway Interchange. This project was a joint City - Developer effort with Los Angeles County and Caltrans oversight to reconstruct the Interstate 5 Magic Mountain Interchange. • Final phase of the Cross Valley Connector project. This project involves construction of two bridges, north and south -bound, each will have a length of 1,100 feet and will span the Santa Clara River. The bridges will provide for six lanes of roadway. • Newhall Streetscape Project - This project is located on Main Street in downtown Newhall and is a major public improvement effort which will construct and create landscaping, hardscaping, street furniture, street lights, pavers, and mid -block crossings. Additional Governmental Activities Business Type Activities Total statements on pages 55 2009 2008 2009 2008 2009 2008 Land $ 84,071,279 $ 82,955,324 $ 10,787,880 $ 10,787,880 $ 94,859,159 $ 93,743,204 Construction in progress 43,776,640 106,605,795 2,097,683 762,096 45,874,323 107,367,891 Infrastructure, net 531,550,499 480,771,124 - - 531,550,499 480,771,124 Depreciable site improvements, Net 12,917,720 12,693,526 1,607566 - 14,525,286 12,693,526 Depreciable buildings and improvements, net 36,378,551 37,381,460 35555,280 38,095,978 71,933,831 75,477,438 Depreciable equipment, net 2,968,335 2,708,395 16,915,442 14,750,437 19,883,777 17,458,832 TOTALS 711,663,024 $ 723,115,624 $ 66,963,851 $ 64,396,391 $ 778,626,875 $ 787,512,015 Major capital asset events during the year included: • Completion of the I-5/Magic Mountain Freeway Interchange. This project was a joint City - Developer effort with Los Angeles County and Caltrans oversight to reconstruct the Interstate 5 Magic Mountain Interchange. • Final phase of the Cross Valley Connector project. This project involves construction of two bridges, north and south -bound, each will have a length of 1,100 feet and will span the Santa Clara River. The bridges will provide for six lanes of roadway. • Newhall Streetscape Project - This project is located on Main Street in downtown Newhall and is a major public improvement effort which will construct and create landscaping, hardscaping, street furniture, street lights, pavers, and mid -block crossings. Additional information on the City of Santa Clarita's capital assets can be located in Note 3 to the financial statements on pages 55 through 57. See independent auditors report. 12 CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED) Debt Administration At year-end, the City's total debt amounted to $87.7 million in bonds, notes, capital leases, contracts, claims payable, and compensated absences as shown in Table 4. A summary of debt activity for the year follows. TABLE4 CITY OF SANTA CLARITA'S OUTSTANDING DEBT Lease Revenue Bonds Governmental Activities Business -type Activities Total - - 13,430,912 13,679,570 Contract and Leases 2009 2008 2009 2008 2009 2008 Refunding Certificates of 485,304 870,149 3,320,099 4,487,559 Compensated Absences 2,471,047 Participation, net $ 14,420,000 $ 15,388,369 $ - $ - $ 14,420,511 $ 15,388,369 Tax Allocation Bonds 38,549,624 38,544,094 - - 38,549,624 38,544,094 Certificates of $ 485,304 $ 870,149 $ 87,767,193 $ 89,687,871 Participation 15,525,000 15525,000 - - 15,525,000 15,525,000 Lease Revenue Bonds 13,430,912 13,679570 - - 13,430,912 13,679,570 Contract and Leases Payable 2,834,795 3,617,410 485,304 870,149 3,320,099 4,487,559 Compensated Absences 2,471,047 1,993,279 - - 2,471,047 1,993,279 Claims Payable 50,000 70,000 - - 50,000 70,000 TOTALS $ 87,281,889 $ 88,817,722 $ 485,304 $ 870,149 $ 87,767,193 $ 89,687,871 The City's governmental activities had $87.3 million in debt at year-end. Governmental Activities long- term debt decreased overall by $1.5 million during the year. A summary of the activity giving rise to new increases in debt is as follows: • Compensated absences liability for that portion of unused, earned vacation compensation that is not expected to be paid within the coming fiscal year, increased by $691,971. • Claims payable liability for that portion of incurred and reported claims, as well as incurred but unreported claims, which are not expected to be paid within the coming fiscal year decreased by $20,000. Additional information on the City of Santa Clarita's self-insurance can be located in the financial statements on page 76. • Contract & leases payable for that portion of incurred and reported payables decreased by $782,615, from $3,617,410 to $2,834,795. The City's business -type activities debt decreased by $384,845, from $870,149 to $485,304. No new debt related to business -type activities was issued or refinanced during the current fiscal year. Debt in the business -type activities is for capital leasing of buses and other transit -related equipment. During the fiscal year ended June 30, 2009, the City was able to meet its current year debt obligation in a timely matter. State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total assessed valuation. The debt limitation for the City as of June 30, 2009, was $3,240,132,127. Additional information on the City of Santa Clarita's debt can be located in Note 4 to the financial statements, on pages 58 through 67. See independent auditors report. 13 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS In preparing the budget for fiscal year 2009-10, management considered the devastating economic climate and the impacts that it has had on our revenues. • General fund sales tax revenue remains one of the primary sources of revenue to operate general governmental functions, accounting for 34.1% or $26.5 million in 2009-10. Although five sales tax generators will open between May to September 2009, the City projected an 18.7% decline in sales tax revenue. • Property tax revenues accounts for 32.4% or $25.1 million in 2009-10. This is a decline of 5.6%. The projection is based on assessed valuation for fiscal year 2008-09. The decline is due to the County's rising delinquency rate of up to 6%. Also, Proposition 8 appeals continue to make a significant negative impact. Budgeted general fund revenues for fiscal year 2009-10 is $73.0 million, 11.6% lower than the original budget revenues of the prior year. The City's general fund operating and capital expenditures for the coming year are budgeted at $69.8 million, a decrease of 11.8% over previous year. The City made a conscious effort to limit the amount of ongoing general fund expenditures. Instead, the City utilized special funds to take the burden off the general fund to continue providing essential services. Operational expenditures decreased by 7.1% or $5.5 million, and capital expenditures had a dramatic decrease of 93.4% or $4.0 million. The City's 2009-10 operating budget for all funds increased by .1 % or $71,463. The City has successfully secured $13.5 million of federal stimulus money that will help fund capital projects. The City Council has also created the "21 Point Business Plan for Progress', this is a $5.2 million local economic development stimulus strategy to stimulate local businesses. The 2009-10 budget is a reflection of the City's commitment to the residents of Santa Clarita. The ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS (CONTINUED) City's departments worked very hard to identify ways to reduce budgets with the goals of not seriously impacting services. This is consistent with the City's long tradition of ensuring that programming for Santa Clarita's youth and children is a priority to help curb teen crimes. A copy of the City's 2009-10 budget can be obtained by contacting the City Finance Division or visit the web at santa- clarita.com/cityhall/cmo/budget. CONTACTING THE CITY'S FINANCE DIVISION This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the City's Finance Division, at the City of Santa Clarita, 23920 Valencia Boulevard, Suite 295, Santa Clarita, California 91355, or (661) 255-4920. See independent auditors report. 14 BASIC FINANCIAL STATEMENTS 15 16 GOVERNMENT -WIDE FINANCIAL STATEMENTS 17 18 City of Santa Clarita Statement of Net Assets June 30, 2009 ASSETS Cash and investments Cash and investments with fiscal agent Receivables: Accounts Interest Taxes Prepaid costs Due from other governments Land held for resale Deferred charges Deposits Loans receivable Internal balances Capital assets: Not being depreciated: Land Construction in progress Being depreciated: Site improvements, net of accumulated depreciation Building, net of accumulated depreciation Equipment, net of accumulated depreciation Infrastructure, net of accumulated depreciation Total capital assets, net Total assets LIABILITIES Accounts payable and accrued liabilities Unearned revenue Due to other governments Deposits payable Interest payable Other postemployment benefits payable Noncurrent liabilities: Due within one year Due in more than one year Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital improvements Other special purposes Redevelopment projects Low and moderate income housing Special assessments Unrestricted Total net assets See accompanying Notes to Basic Financial Statements. 19 Governmental Business -type Activities Activities Total $ 231,706,839 $ 2,984,134 $ 234,690,973 1,171,624 - 1,171,624 7591,494 34,537 7,626,031 1,667,631 - 1,667,631 2552,463 - 2,552,463 191,263 - 191,263 8510,387 3,509,270 12,019,657 1,607,196 - 1,607,196 2,616,761 - 2,616,761 13,333,807 - 13,333,807 1,307,138 - 1,307,138 (52,263) 52,263 - 84,071,279 10,787,880 94,859,159 43,776,640 2,097,683 45,874,323 12,917,720 1,607,566 14,525,286 36,378551 35,555,280 71,933,831 2,968,335 16,915,442 19,883,777 531,550,499 - 531,550,499 711,663,024 66,963,851 778,626,875 983,867,364 73,544,055 1,057,411,419 26,779,646 7,178,286 862,942 31,491,425 1,023,467 3,700,973 2,906,047 84,375,842 158,318,628 629,621,720 4,769,573 18,889,244 12,246,730 37,794,856 23,713,909 98,512,704 $ 825,548,736 $ 2,964,943 11,865 237,000 248,304 3,462,112 66,478,547 29,744,589 7,190,151 862,942 31,491,425 1,023,467 3,700,973 3,143,047 84,624,146 161,780,740 696,100,267 - 4,769,573 - 18,889,244 - 12,246,730 - 37,794,856 - 23,713,909 3,603,396 102,116,100 70,081,943 $ 895,630,679 City of Santa Clarita Statements of Activities and Changes in Net Assets For the Year Ended June 30, 2009 See accompanying Notes to Basic Financial Statements. W, General Revenues: Taxes: Sales taxes Property taxes, levied for general purposes Franchise taxes Transient occupancy taxes Property transfer tax Unrestricted revenue in lieu of sales taxes Grant and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous revenue Transfers Total general revenues and transfers Changes in net assets Net assets - beginning of year, as restated Net assets - end of year Program Revenues Operating Capital Charges for Grants and Grants and FunctiongPrograms Expenses Services Contributions Contributions Governmental activities: General government $ 30,094,380 $ 621,624 $ 51,707 $ - Public safety 17,489,870 1,898,022 2,604 - Public works 48,514,645 260,524 7,276,310 31,378,428 Parks and recreation 32,747,618 3,849,699 327,201 2,405,061 Community development 9,761,681 35,138,334 2,273,287 5,002,087 Unallocated infrastructure depreciation 14,405,047 - - - Interest and fiscal charges 5,786,174 - - - Total governmental activities 158,799,415 41,768,203 9,931,109 38,785,576 Business -type activities: Transit 22,299,379 3,299,263 13,653,177 - Total $ 181,098,794 $ 45,067,466 $ 23,584,286 $ 38,785,576 See accompanying Notes to Basic Financial Statements. W, General Revenues: Taxes: Sales taxes Property taxes, levied for general purposes Franchise taxes Transient occupancy taxes Property transfer tax Unrestricted revenue in lieu of sales taxes Grant and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous revenue Transfers Total general revenues and transfers Changes in net assets Net assets - beginning of year, as restated Net assets - end of year Net (Expense) Revenue and Changes in Net Assets Governmental Business -type Activities Activities Total $ (29,421,049) $ - $ (29,421,049) (15,589,244) - (15,589,244) (9,599,383) - (9,599,383) (26,165,657) - (26,165,657) 32,652,027 32,652,027 (14,405,047) - (14,405,047) (5,786,174) - (5,786,174) (68,314,527) - (68,314527) - (5,346,939) (5,346,939) (68,314,527) (5,346,939) (73,661,466) 27,751,506 - 27,751506 26,820,068 - 26,820,068 6,704,074 - 6,704,074 2,260,708 - 2,260,708 4,816,638 - 4,816,638 3,083,353 - 3,083,353 1,015,413 - 1,015,413 6,020,940 - 6,020,940 3,193,421 938,901 4,132,322 (8,006,128) 8,006,128 - 73,659,993 8,945,029 82,605,022 5,345,466 3,598,090 8,943,556 820,203,270 66,483,853 886,687,123 $ 825,548,736 $ 70,081,943 $ 895,630,679 21 22 FUND FINANCIAL STATEMENTS 23 City of Santa Clarita Balance Sheet Governmental Funds June 30, 2009 ASSETS Cash and investments Cash and investments with fiscal agents Receivable: Accounts Interest Taxes Prepaid costs Due from other funds Due from other governments Land held for resale Deposits Loans receivable Advance to other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Deferred revenue Due to other governments Deposits Due to other funds Advance from other funds Total liabilities Fund Balances: Reserved: General fund Special revenue fund Debt service fund Capital projects fund Unreserved, designated: General fund Special revenue fund Debt service fund Capital projects fund Unreserved, undesignated Total fund balances Total liabilities and fund balances See accompanying Notes to Basic Financial Statements. Special Revenue Funds Open Space Bridge and Developer Preservation General Thoroughfare Fees District $ 66,641,607 $ 22,695,490 $ 15,087,183 $ 17,564,038 6,626,520 157,150 448,246 68,573 686,124 210,024 142,576 20,167 191,263 - - - 3,802,017 - - - 379,099 - - - 13,330,807 - - 3,000 17,822,713 18,334,071 600,422 - $ 109,480,150 $ 41,396,735 $ 16,278,427 $ 17,655,778 $ 19,927,127 $ 1,651,604 $ 55,596 $ 3,795 5,546,153 2,506,568 14,353,442 8,582 10,107,673 21,383,752 - - - 19,693,690 - - 35580,953 45,235,614 14,409,038 12,377 32,617,139 220,616 22,071,710 1,093,129 17,643,401 776,260 41,061,442 (25,910,589) - - 73,899,197 (3,838,879) 1,869,389 17,643,401 $ 109,480,150 $ 41,396,735 $ 16,278,427 $ 17,655,778 24 Debt Capital Service Fund Projects Fund 1,528,114 Nonmajor Total Redevelopment Redevelopment Governmental Governmental Agency Agency Funds Funds $ 22,090 $ 37,029,227 $ 54,949,191 $ 213,988,826 902,745 - 268,879 1,171,624 - 91,489 196,856 7,588,834 - 87,944 381,279 1,528,114 - - 2,552,463 2,552,463 - - - 191,263 - - - 3,802,017 - - 8,131,288 8,510,387 - 1,607,196 - 1,607,196 - - - 13,333,807 - - 1,307,138 1,307,138 - - - 36,757,206 $ 924,835 $ 38,815,856 $ 67,787,094 $ 292,338,875 $ - $ 234,581 $ 6,272,525 $ 28,145,228 - 37,423 12,945,704 35,397,872 - 748,996 113,946 862,942 - - - 31,491,425 - - 3,802,017 3,802,017 17,929,306 - - 37,622,996 17,929,306 1,021,000 23,134,192 137,322,480 32,617,139 - 11,968,628 52,776,868 - 571,063 571,063 3,292,586 735,459 4,028,045 - 220,616 - 25,010,146 25,786,406 - 34502,270 4,769,573 39,271,843 (17,004,471) - 1,598,033 (255,585) (17,004,471) 37,794,856 44,652,902 155,016,395 $ 924,835 $ 38,815,856 $ 67,787,094 $ 292,338,875 25 26 City of Santa Clarita Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets June 30, 2009 Total Fund Balances - Total Governmental Funds $ 155,016,395 Amounts reported for governmental activities in the Statement of Net Assets are different because: Government- Less Capital assets used in governmental activities are not financial resources and therefore Wide Statement Internal Service are not reported in governmental funds. Those assets consist of: of Net Assets Funds Nondepreciable $ 127,847,919 $ - Depreciable, net of accumulated depreciation 583,815,103 894,124 Total capital assets $ 711,663,022 $ 894,124 710,768,898 Bond issuance costs from issuing debt were expenditures in the fund financial statements. However, they were deferred and subject to capitalization and amortization in the Government -Wide Financial Statements: Deferred charges, net of accumulated amortization 2,616,761 Long-term receivables were not current available resources. Therefore, they were offset by a deferred revenue amount equal to the net receivable in the governmental funds. 28,219,586 Government - Liabilities were not due and payable in the current period. Therefore, they were not Wide Statement Internal Service reported in the governmental funds: of Net Assets Funds Compensated absences - current $ (285,797) $ - Capital leases -current (9,278) - Long-term debt - due within one year (2,610,972) - Compensated absences - noncurrent (2,185,250) - Capital leases - noncurrent (1,610) - Long-term debt - noncurrent (80,382,685) - Deferred discount/premiums 428,953 - Claims payable (50,000) (50,000) OPEB obligations (3,700,973) - $ (88,797,612) $ (5Q000) (88,747,612) Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (1,023,467) Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Government -Wide Statement of Net Assets. 18,698,175 Net assets of governmental activities $ 825,548,736 See accompanying Notes to Basic Financial Statements. 27 City of Santa Clarita Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2009 EXPENDITURES Current: General government 13,779,808 - Special Revenue Funds 17,966 Public safety 17,155,497 - - Open Space Public works 14,665,832 Bridge and Developer Preservation Parks and recreation General Thoroughfare Fees District REVENUES: 4,438,666 - 97,088 - Taxes $ 64,594,946 $ - $ - $ 1,645,398 Licenses and permits 3,697,218 - - - Developer fees - 14,671,591 569,715 - Investment income 4,768,812 1,558,040 1,332,025 291,006 Revenue from other agencies 1,444,610 - - - Fines and forfeitures 402,851 - - - Service charges 5,364,011 - - - Other revenue 314,169 - 39,985 - Overhead reimbursement 2,395,549 - - - Total revenues 82,982,166 16,229,631 1,941,725 1,936,404 EXPENDITURES Current: General government 13,779,808 - - 17,966 Public safety 17,155,497 - - - Public works 14,665,832 21,500,307 - - Parks and recreation 19,926,371 - - - Community development 4,438,666 - 97,088 - Capital outlay - 13,704,434 1,132,163 - Debt service: Bond issuance costs 39,011 - - - Principal retirement 411,994 - - - Interest and fiscal charges 35,845 688,463 - - Total expenditures 70,453,024 35,893,204 1,229,251 17,966 REVENUES OVER (UNDER) EXPENDITURES 12,529,142 (19,663,573) 712,474 1,918,438 OTHER FINANCING SOURCES (USES): Transfers in 4,551,323 515,517 - - Transfers out (9,255,694) - - (710,507) Total other financing sources (uses) (4,704,371) 515,517 - (710,507) Net change in fund balances 7,824,771 (19,148,056) 712,474 1,207,931 FUND BALANCES: Beginning of year 66,074,426 15,309,177 1,156,915 16,435,470 End of year $ 73,899,197 5 (3,838,879) $ 1,869,389 $ 17,643,401 See accompanying Notes to Basic Financial Statements. 28 Debt Capital Service Fund Proiects Fund Nonmajor Redevelopment Redevelopment Govemmental Agency Agency Funds Total Governmental Funds $ - $ 3,202,114 $ 17,824,729 $ 87,267,187 - - - 3,697,218 - - 521,764 15,763,070 20,820 889,591 1,928,077 10,788,371 - - 27,399,631 28,844,241 - - 1,356,520 1,759,371 - - 3,011,760 8,375,771 - 69,780 2,257,917 2,681,851 - - - 2,395,549 20,820 4,161,485 54,300,398 161,572,629 - 13,452,282 27,250,056 - 283,798 17,439,295 - 6,771,029 42,937,168 - 200,041 20,126,412 1,502,947 1,056,685 7,095,386 1,495,750 25,494,164 41,826,511 - 11,814 6,690 57,515 - - 1,602,832 2,014,826 2,255,941 - 2,299,300 5,279,549 2,255,941 3,010,511 51,166,821 164,026,718 (2,235,121) 1,150,974 3,133,577 (2,454,089) 1,114,374 70,862 5,648,350 11,900,426 (9,889) (1,114,374) (11,941,090) (23,031,554) 1,104,485 (1,043,512) (6,292,740) (11,131,128) (1,130,636) 107,462 (3,159,163) (13,585,217) (15,873,835) 37,687,394 47,812,065 168,601,612 $ (17,004,471) $ 37,794,856 $ 44,652,902 $ 155,016,395 29 City of Santa Clarita Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets For the Year Ended June 30, 2009 Net change in fund balance - total governmental funds: $ (13585,217) Amounts reported for governmental activities in the Statement of Activities are different because: Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government - Wide Statement of Activities and Changes in Net Assets, the cost of those assets was allocated over the estimated useful lives as depreciation expense. The following was the amount of capital assets recorded in the current period: Capital outlay 31,297,318 Depreciation expense on capital assets was reported in the Government -Wide Statement of Activities and Changes in Net Assets, but it did not require the use of current financial resources. Therefore, depreciation expense was not reported as an expenditure in the governmental funds. The adjustment is the difference between the depreciation expense of the governmental activities in the amount of $17,038,171 and the depreciation expense of the internal service funds in the amount of $294,355. (16,743,818) Amortization expense was reported in the Government -Wide Statement of Activities and Changes in Net Assets, but it did not require the use of current financial resources. Therefore, amortization expense was not reported as an expenditure in the governmental funds: Amortization of bond premiums and discounts (34,014) Amortization of discount and deferred amount on refunding (68,765) Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government -Wide Statement of Net Assets. Repayment of bond principal was an expenditure in the governmental funds, but the repayment reduced long-term liabilities in the Government -Wide Statement of Net Assets. Issuance of certificates of participation and tax allocation bonds, loans, and capital leases: Principal payments 2,027,615 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. The following amount represents the change from the prior year: Compensated absences (477,768) Accrued interest (359,120) Other post employment benefits (1,454,750) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenue in the governmental funds. Conversely, collection of these revenues are reported in the governmental funds, but not in the Statement of Activities since they have been recognized in previous years. 10,578,380 Internal service funds are used by management to charge the costs of self-insurance and capital replacements to individual funds. The net revenue of internal service funds is reported with governmental activities. (5,834,395) Change in net assets of governmental activities $ 5,345,466 See accompanying Notes to Basic Financial Statements. PROPRIETARY FUND FINANCIAL STATEMENTS 31 32 City of Santa Clarita Statement of Net Assets Proprietary Funds June 30, 2009 ASSETS Current assets: Cash and investments Receivables: Accounts Interest Due from other governments Advances to other fund Total current assets Noncurrent assets: Capital assets: Land Construction in progress Site improvements, net of accumulated depreciation Building, net of accumulated depreciation Equipment, net of accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Deferred revenue Accrued interest payable Capital leases payable Total current liabilities Noncurrent liabilities: Claims payable Capital leases payable Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets Unrestricted Total net assets Net assets reconciliation: Net assets of proprietary funds Adjustment to reflect the consolidation of internal service fund activities related to the Transit Fund Net assets of business -type activities See accompanying Notes to Basic Financial Statements. M Business -Type Government Activity Activities Transit Internal Enterprise Service Fund $ 2,984,134 $ 17,718,013 6,655 2,660 27,882 139,517 3509,270 - - 865,790 6,527,941 18,725,980 10,787,880 - 2,097,683 - 1,607,566 35,555,280 - 16,915,442 894,124 66,963,851 894,124 73,491,792 19,620,104 2,964,943 819,666 11,865 - 237,000 3,213,808 819,666 - 50,000 248,304 248,304 50,000 3,462,112 869,666 66,478,547 894,124 3,551,133 17,856,314 $ 70,029,680 $ 18,750,438 $ 70,029,680 52,263 S 70,081,943 City of Santa Clarita Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the Year Ended June 30, 2008 OPERATING REVENUES: Charges for services Other revenues Total operating revenue OPERATING EXPENSES: Administrative and personnel services Transportation services Service and supplies Depreciation Total operating expenses OPERATION INCOME (LOSS) NONOPERATING REVENUES (EXPENSES): Intergovernmental grants Investment income Miscellaneous revenues Interest Total nonoperating revenues (expenses) INCOME (LOSS) BEFORE TRANSFERS TRANSFERS AND CAPITAL CONTRIBUTIONS: Transfers in Transfers out Total transfers Changes in net assets NET ASSETS: Beginning of the year End of the year Net assets reconciliation: Net assets of proprietary funds Adjustment to reflect the consolidation of internal service fund activities related to the Transit Fund Net assets of business -type activities See accompanying Notes to Basic Financial Statements. W Business -Type Government Activity - Activities - Transit Internal Enterprise Service Fund $ 3,044584 $ 2,420,383 254,679 13,258 3,299,263 2,433,641 1,764,355 - 15,261,207 - 1560,011 11,881,900 3,713,806 294,355 22,299,379 12,176,255 (19,000,116) (9,742,614) 13,653,177 - - 783,219 969,819 - (30,918) 14,592,078 783,219 (4,408,038) (8,959,395) 8,172,930 (166,802) 3,125,000 - 8,006,128 3,125,000 3,598,090 (5,834,395) 66,483,853 24,584,833 $ 70,081,943 $ 18,750,438 $ 3,598,090 $ 3598,090 City of Santa Clarita Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2009 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Business -Type Government Principal payments on financed debt Activity - Activities - Interest expense Transit Internal - Enterprise Service Fund CASH FLOWS FROM OPERATING ACTIVITIES: CASH FLOWS FROM INVESTING ACTIVITIES: Receipts from customers and users $ 3,063,079 $ 2,425,581 Other operating expenses (781,113) 13,258 Payment to suppliers (16,055,049) (11,608,569) Payments to employees (1,764,355) (3,313,458) Net cash provided by (used for) operating activities (15,537,438) (9,169,730) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash contributed by other governments 13,653,177 - Other income 969,819 - Cash received from other funds 8,172,930 5,335,410 Cash paid to other funds (166,802) - Net cash provided by (used for) noncapital financing activities 22,629,124 5,335,410 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (6,281,266) (286,587) Principal payments on financed debt (384,845) - Interest expense (53,747) (1,218,715) - Net cash provided by (used for) capital and related financing activities (6,719,858) (286,587) CASH FLOWS FROM INVESTING ACTIVITIES: (9,169,730) Interest expense (968) 807,449 Net cash provided (used) by investing activities (968) 807,449 Net increase (decrease) in cash and cash equivalents 370,860 (3,313,458) CASH AND CASH EQUIVALENTS: Beginning of year End of year RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income to net cash provided by (used for) operating activities: Depreciation expense Change in assets and liabilities: Increase (decrease) in accounts receivable Increase (decrease) in due from other governments Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in due to other governments Increase (decrease) in claims payable Increase (decrease) in deferred revenues Net cash provided (used) by operating activities See accompanying Notes to Basic Financial Statements. W 2,613,274 21,031,471 $ 2,984,134 $ 17,718,013 $ (19,000,116) $ (9,742,614) 3,713,806 294,355 18,495 5,198 171,058 - 766,169 293,331 (1,218,715) - - (20,000) 11,865 $ (15537,438) $ (9,169,730) 36 FIDUCIARY FUND FINANCIAL STATEMENTS im 38 City of Santa Clarita Statement of Fiduciary Net Assets Fiduciary Fund June 30, 2009 LIABILITIES Accounts payable and accrued liabilities Due to other funds Due to bondholders Total liabilities See accompanying Notes to Basic Financial Statements. T $ 2,045 754 2,029,145 $ 2,031,944 Agency Funds ASSETS Cash and investments $ 227,747 Cash and investments with fiscal agent 1,799,564 Taxes receivable 21504 Interest receivable 21129 Total assets $ 21031,944 LIABILITIES Accounts payable and accrued liabilities Due to other funds Due to bondholders Total liabilities See accompanying Notes to Basic Financial Statements. T $ 2,045 754 2,029,145 $ 2,031,944 40 NOTES TO BASIC FINANCIAL STATEMENTS 41 City of Santa Clarita Notes to Basic Financial Statements For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Santa Clarita, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Financial Reporting Entity The City was incorporated on December 15, 1987, as a general law city. The City operates under a council-manager form of government and provides its citizens with a full range of municipal services, either directly or under contract with the County of Los Angeles. Such services include public safety (police and fire protection), building permit/plan approval, planning, community development, recreation, animal control and street maintenance. As required by GAAP, these basic financial statements present the City and its component units for which the City is considered to be financially accountable. GASB Statement No. 14, The Financial Reporting Entity, defines component units as legally separate entities that meet any one of the following tests: 1. The City appoints the voting majority of the board of the potential component unit and: is able to impose its will on the component unit and/or is in a relationship of financial benefit or burden with the potential component unit. 2. The potential component unit is fiscally dependent upon the City. 3. The financial statements of the City would be misleading if data from the potential component unit was omitted. Management determined that the following component units should be blended based on the criteria above: The Redevelopment Agency of the City of Santa Clarita (Agency) was established in July 1991, pursuant to the State of California Health and Safety Code, Section 33000. The Agency is governed by the members of the City Council. The Agency's primary purpose 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's financial data and activity are reported within the debt service and capital projects fund types of the City. The Agency's basic financial statements can be obtained at the City's administrative offices. The Santa Clarita Public Financing Authority_ (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 Authority's financial data and activity are reported within the debt service and capital projects fund types of the City. The Authority's basic financial statements can be obtained at the City's administrative offices. 0 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus The accounting policies of the City conform to GAAP in the United States for local governmental units. The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self - balancing accounts that comprise its assets, liabilities, fund balance, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purpose of which they are to be spent and means by which spending activities are controlled. Government - Wide and Fund Financial Statements The City's government -wide financial statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of governmental and business -type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: • Charges for services • Operating grants and contributions • Capital grants and contributions Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated: Due to and from other funds Advances to and from other funds Transfers in and out 43 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued The City has conformed to the pronouncements of the Governmental Accounting Standards Board (GASB), which are acknowledged as the primary authoritative statements of accounting principles generally accepted in the United States of America applicable to state and local governments. In accordance with GASB Statements 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 Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedures. The City has elected not to follow subsequent private -sector guidance. Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. The City has presented all major funds that met meet the required criteria. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the government -wide financial statements. The City reports the following major governmental funds: The General Fund is the primary operating fund of the City. It is used to account for all financial resources of the City that are not required to be accounted for in another fund. The Bridge and Thoroughfare Special Revenue Fund is used to account for monies received from developers for street and highway construction through bridge and thoroughfare districts. The Developer Fees Special Revenue Fund is used to account for monies received from developers for street improvements. The Open Space Preservation District Special Revenue Fund is used to account for monies received from assessments for the costs of acquiring open space lands, parks, and parkland in accordance with the City's programs. The Redevelopment Agency Debt Service Fund is used to account for debt service on loans from the City to the Redevelopment Agency. The Redevelopment Agency Capital Projects Fund is used to account for the Agency's construction of all capital projects located within the project area that are not financed with housing set-aside funds. Proprietary Fund Financial Statements Proprietary funds are accounted for using the "economic resources' measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Net Assets presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. U City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. The City reports the following major enterprise fund: The Transit Enterprise Fund is used to account for the operation of the City's local public transit bus system. Fiduciaru Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Assets. The City's fiduciary funds represent agency funds. Fiduciary fund types are accounted for according to the nature of the fund. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Agency funds are accounted for using the accrual basis of accounting. The City reports the following agency funds: The Assessment District No. 92-2 Fund is used to account for assets held by the City as an agent and related to the debt service activity on no -commitment special assessment debt. The Assessment District No. 99-1 Fund is used to account for assets held by the City as an agent and related to the debt service activity on no -commitment special assessment debt. The Assessment District No. 2002-1 Fund is used to account for assets held by the City as an agent and related to the debt service activity on no -commitment special assessment debt. Fund Types reported by the Citu Additionally, the City reports the following fund types: The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for special purposes. The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest and principal on long-term debt. The Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). The Internal Service Funds are used to account for the financing of special activities that provide services within the City. Such activities include self-insurance, computer replacement, vehicle replacement and public facilities replacement. ER City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash and Cash Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset- backed securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as to change in interest rates. The City also participates in the Los Angeles County Pooled Investment Fund. In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of GASB No. 3), certain disclosure requirements, if applicable, are provided for deposit and investment risk in the following areas: ➢ Interest Rate Risk ➢ Credit Risk Overall Custodial Credit Risk • Concentration of Credit Risk ➢ Foreign Currency Risk D. Interfund Transactions Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds' (i.e., current portion of interfund loans) or "advances from/to other funds' (i.e., noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business -type activities are reported in the governmental -wide financial statements as "internal balances." E. Prepaids Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. M City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Capital Assets Government -Wide Financial Statements Capital assets, which include land, site improvements, buildings and improvements, equipment and infrastructure assets, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. General infrastructure assets consist of roads, curbs and gutters, sidewalks, medians, street trees, street signs, bus shelters, bridges, trails, traffic signals, storm drains/catch basins, sewer manholes, and sewer lines. Capital assets are defined by the City as assets with an initial cost of more than $5,000 ($25,000 for site improvements and building improvements and $100,000 for infrastructure) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Equipment 5 - 25 years Site Improvements 5 - 25 years Buildings and Improvements 5 - 50 years Infrastructure 20 - 60 years Fund Financial Statements The fund financial statements do not present capital assets. As such, capital assets are shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government - Wide Statement of Net Assets. G. Land Held for Resale Land held for resale is carried at cost. An amount equal to the carrying value of land is reserved in fund balance because such assets are not available to finance the City's current operations. H. Long Term Debt Government -Wide Financial Statements Long-term debt and other financed obligations are reported as liabilities in the government -wide and proprietary fund financial statements. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are reported as deferred charges. 47 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Long Term Debt, Continued Fund Financial Statements The fund financial statements do not present long-term debt. As such, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government - Wide Statement of Net Assets. L Employee Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation (compensated absences). All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. Vacation pay which is expected to be liquidated in the current period with expendable available resources is reported in the governmental funds that will pay it (primarily the General Fund). Compensated absences are reported in governmental funds only if they have matured. J. Claims Payable 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. K. Property Taxes Property taxes are an enforceable lien on property as of January 1 of each year. Taxes are levied on each 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. L. Net Assets and Fund Balances Government -Wide Financial Statements - In the government -wide financial statements, net assets are classified in the following: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." 0 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Assets and Fund Balances, Continued Fund Financial Statements - Reservations represent the fund balance which are not appropriable for expenditure or which are legally segregated for specific future use. Designated fund balance represents tentative plans for future use of financial resources. Undesignated fund balance represents the fund balance which is available for appropriation in future periods. M. Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. N. Estimates The preparation of the basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities at the date of the basic financial statements and the related reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates are reasonable. O. Unearned and Deferred Revenue Government -Wide Financial Statements - Unearned revenue is recognized for transactions for which revenue has not yet been earned. Unearned revenue includes monies received in advance from the fiscal agents on the amounts deposited in the reserve funds for various bonds and prepaid charges for services. Fund Financial Statements - Deferred revenue represents money received during the current or previous years that has not been earned or is not considered available to finance expenditures of the current period. P. New Pronouncements In 2009, the City adopted new accounting standards in order to conform to the following GASB Statements: • GASB Statement No. 45, Financial Reporting for Postemployment Benefit Plans (OPEB) other than Pension Plans - this Statement establishes standards for the measurement, recognition, and display of OPEB expense/ expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. • GASB Statement No. 49, Financial Reporting for Pollution Remediation Obligations - This Statement addresses accounting and financial reporting standards for pollution (including contamination) remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. M City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. New Pronouncements, Continued • GASB Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments - The Statement incorporates the hierarchy of generally accepted accounting principles (GAAP) for state and local governments into the GASB's authoritative literature. • GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards - This Statement incorporates accounting and financial reporting guidance previously only contained in the American Institute of Certified Public Accountants (AICPA) auditing literature into the GASB's accounting and financial reporting literature for state and local governments. 2. CASH AND INVESTMENTS A. Cash and Investments Cash and investments at June 30, 2009, are classified in the accompanying financial statements as follows: Cash and Investments Cash and Investments with fiscal agent Total Government -Wide Statement of Net Assets Fiduciary Funds Governmental Business -Type Statement of Activities Activities Total Net Assets Total $ 231,706,839 $ 2,984,134 $ 234,690,973 $ 227,747 $ 234,918,720 1,171,624 - 1,171,624 1,799,564 2,971,188 $ 232,878,463 $ 2,984,134 $ 235,862,597 $ 2,027,311 $ 237,889,908 Cash and investments consisted of the following at June 30, 2009: Cash and cash equivalents: Cash on hand $ 3,535 Deposits with financial institutions 1,826,706 Total cash and cash equivalents 1,830,241 Investments US Treasury Securities 35,243,998 Federal Agencies 128,760,634 Money Markets 10,711,881 Certificates of Deposit 403,188 Corporate Securities 42,776,753 Local Agency Pool 13,758,058 LA County Pool 1,433,967 Total investments 233,088,479 Total cash and investments $ 234,918,720 50 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 2, CASH AND INVESTMENTS, Continued B. Investments Authorized by the California Government code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. * - Excluding amounts held by bond trustees that are not subject to California Government Code restrictions 51 Maximum Percentage or Maximum Amount of Investment in Authorized Investment Type Maximum Maturity Portfolio * One Issuer Local Agency Bonds 5 years None None U.S. Treasury Obligations 5 years None None State of California Obligations 5 years None None CA Local Agency Obligations 5 years None None U.S. Government Sponsored Enterprise Securities 5 years None None Banker's Acceptances 180 days 40% 30% Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Repurchase Agreements 1 year None None Medium -Term Notes 5 years 30% None Money Market Mutual Funds 5 years 15% 10% Mortgage Pass -Through Securities 5 years 20% None County Pooled Investment Funds Not Applicable None None Local Agency Investment Fund (LAIF) Not Applicable $ 40 M None * - Excluding amounts held by bond trustees that are not subject to California Government Code restrictions 51 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 2, CASH AND INVESTMENTS, Continued C. Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Percentage Maximum or Amount of Authorized Investment Type Maturity Portfolio * U.S. Treasury Obligations Money Market Mutual Funds Local Agency Investment Fund (LAIF) D. Disclosures Relating to Interest Rate Risk Maximum Investment in One Issuer 5 years None None 5 years 15% 10 Not Applicable $40M None As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy (Policy) limits investments to a maximum maturity of five years from the date of purchase. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time, as necessary, to provide the cash flow and liquidity needed for operations. At June 30, 2009, the City had the following investment maturities: Investment Type US Treasury Securities Federal Agencies Money Markets Certificates of Deposit Corporate Securities Local Agency Pool LA County Pool Total 52 Investment Maturities (In Years) Fair Value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 $ 35,243,998 $ 19,040,335 $ 6,388,127 $ 3,268,617 $ 6,546,919 $ - 128,760,634 61,393,498 31,658,829 18,599,538 12,614,683 4,494,086 10,711,881 10,711,881 - - - - 403,188 403,188 - - - - 42,776,753 10,068,565 8,551,162 20,246,834 3,910,192 - 13,758,058 13,758,058 - - - - 1,433,967 1,433,967 - - - - $ 233,088,479 $ 116,809,492 $ 46,598,118 $ 42,114,989 $ 23,071,794 $ 4,494,086 52 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 2, CASH AND INVESTMENTS, Continued E. Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Standard and Poor's, as of year-end for each investment type: Credit Quality Distribution for Securities with Credit Exposure as a Percentage of Total Investments F. Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of the City's total investments are as follows: Issuer Federal National Mortgage Association Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal Farm Credit Bank Investment Type Reported Amount % of Total Investments U.S. Government Sponsored Enterprise Securities $ 25,397,601 11.38% U.S. Government Sponsored Enterprise Securities 31,964,178 14.33% U.S. Government Sponsored Enterprise Securities 40,040,994 17.95% U.S. Government Sponsored Enterprise Securities 26,697,374 11.97% 53 Moody's S&P's % of Investments Credit Credit with Interest Investment Type Rating Rating Rate Risk US Treasury Securities AAA AAA 15.12% Federal Agencies AAA AAA 55.24% Money Markets Not Rated Not Rated 4.60% Certificates of Deposit Not Rated Not Rated 0.17% Corporate Securities Various Various 18.35% Local Agency Pool Not Rated Not Rated 5.90% LA County Pool Not Rated Not Rated 0.62% Total 100.00% F. Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of the City's total investments are as follows: Issuer Federal National Mortgage Association Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal Farm Credit Bank Investment Type Reported Amount % of Total Investments U.S. Government Sponsored Enterprise Securities $ 25,397,601 11.38% U.S. Government Sponsored Enterprise Securities 31,964,178 14.33% U.S. Government Sponsored Enterprise Securities 40,040,994 17.95% U.S. Government Sponsored Enterprise Securities 26,697,374 11.97% 53 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 2, CASH AND INVESTMENTS, Continued G. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2009, the City deposits (bank balances) were insured by the Federal Depository Insurance Corporation or collateralized as required under California Law. H. Investment in State Investment Pool The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. Each City may invest up to $40,000,000 and may also invest without limitation in special bond proceeds accounts. Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest. The City's investments with LAIF at June 30, 2008, included a portion of the pool funds invested in Structured Notes and Asset -Backed Securities: Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities: generally mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2008, the City had $13,758,058 invested in LAIF, which had invested 14.71% of the pool investment funds in Structured Notes and Asset -Backed. The LAIF fair value factor of 1.001304743 was used to calculate the fair value of the investments in LAIF. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. 54 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 2, CASH AND INVESTMENTS, Continued L Investment in County Investment Pool The LACPIF is a pooled investment fund program governed by the Los Angeles County Board of Supervisors and administered by the Los Angeles County Treasurer and Tax Collector. Investments in the LACPIF are highly liquid, as deposits and withdrawals can be made at anytime without penalty. LACPIF does not impose any maximum investment limit. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's prorated share of the fair value provided by LACPIF for the entire LACPIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LCPIF, which are recorded on an amortized cost basis. 3. CAPITAL ASSETS A. Government -Wide Financial Statements At June 30, 2009, the City's capital assets consisted of the following: 5 Total $ 94,859,159 45,874,323 140,733,482 20,606,249 86,951,270 45,654,897 732,979,344 886,191,760 (6,080,963) (15,017,439) (25,771,120) (201,428,845) (248,298,367) 637,893,393 $ 778,626,875 Governmental Business -Type Activities Activities Non -depreciable assets: Land $ 84,071,279 $ 10,787,880 Construction -in -progress 43,776,640 2,097,683 Total non -depreciable assets 127,847,919 12,885,563 Depreciable assets: Site improvements 18,711,484 1,894,765 Building and improvements 46,537,031 40,414,239 Equipment 10,456,562 35,198,335 Infrastructure 732,979,344 - Total depreciable assets 808,684,421 77,507,339 Less accumulated depreciation: Site improvements (5,793,764) (287,199) Building and improvements (10,158,480) (4,858,959) Equipment (7,488,227) (18,282,893) Infrastructure (201,428,845) - Total accumulated depreciation (224,869,316) (23,429,051) Total depreciable assets, net 583,815,105 54,078,288 Total capital assets, net $ 711,663,024 $ 66,963,551 5 Total $ 94,859,159 45,874,323 140,733,482 20,606,249 86,951,270 45,654,897 732,979,344 886,191,760 (6,080,963) (15,017,439) (25,771,120) (201,428,845) (248,298,367) 637,893,393 $ 778,626,875 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 3, CAPITAL ASSETS, Continued A. Government -Wide Financial Statements, Continued The following is a summary of changes in the capital assets for governmental activities during the fiscal year: (5,040,898) Balance - - (5,793,764) Less accumulated depreciation was charged to functions/ programs Governmental Activities ended Site improvements (5,040,898) Balance - - (5,793,764) Prior Period Balance (1,002,909) July 1, 2008 Additions Deletions Adjustments June 30, 2009 Non -depreciable assets: - (7,488,227) Infrastructure (187,023,798) (14/105,047) - Land $ 82,955,324 $ 11115,955 $ - $ - $ 84,071,279 Construcfion4n-progress 106,605,795 24,784,347 (61,615,168) (25,998,334) 43,776,640 Total non -depreciable assets 189,561,119 25,900,302 (61,615,168) (25,998,334) 127,847,919 Depreciable assets: Site improvements 17,734,424 977,060 - - 18,711,484 Building and improvements 46,537,031 - - - 46,537,031 Equipment 9,434,533 1,146,558 (124,529) - 10/156,562 Infrastructure 667,794,922 65,184,422 - - 732,979,344 Total depreciable assets 741,500,910 67,308,040 (124529) - 808,684,121 Less accumulated depreciation was charged to functions/ programs of governmental activities for the fiscal year ended Site improvements (5,040,898) (752,866) - - (5,793,764) Building and improvements (9,155,571) (1,002,909) - - (10,158,480) Equipment (6,726,138) (877,349) 115,260 - (7,488,227) Infrastructure (187,023,798) (14/105,047) - - (201,428,845) Total accumulated depreciation (207,946,405) (17,038,171) 115,260 - (224,869,316) Total depreciable assets, net 533,554505 50,269,869 (9,269) - 583,815,105 Governmental activities capital assets, net $ 723,113,624 S 76,170,171 $ (61,624,437) 5 (25,998,334) $ 711,663,024 Depreciation expense was charged to functions/ programs of governmental activities for the fiscal year ended June 30, 2009 as follows: Governmental Activities General government Public safety Public works Parks and recreation Community development Intemal service funds depreciation charged to programs Allocated depreciation Unallocated infrastructure depreciation Total depreciation expense - governmental activities 56 $ 418,369 50,575 304,537 1,544,075 21,213 294,355 2,633,124 14,405,047 $17,038,171 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 3, CAPITAL ASSETS, Continued A. Government -Wide Financial Statements, Continued The following is a summary of changes in the capital assets for business -type activities during the fiscal year: 70,666,894 4,945,680 - - 77,507,339 Non -depreciable assets: Land Construction -in -progress Total non -depreciable assets Depreciable assets: Site improvements Building and improvements Equipment Total depreciable assets Less accumulated depreciation: Site improvements Building and improvements Equipment Total accumulated depreciation Total depreciable assets, net Business -type activities capital assets, net Business -Type Activities Balance Balance July 1, 2008 Additions Deletions Reclassification June 30, 2009 $ 10,787,880 $ - $ - $ - $ 10,787,880 762,096 1,545,348 (209,761) - 2,097,683 11,549,976 1,545,348 (209,761) - 12,885,563 1,894,765 - - - 1,894,765 40,414,239 - - - 40,414,239 30,252,655 4,945,680 - - 35,198,335 70,666,894 4,945,680 - - 77,507,339 (216,023) (71,176) - - (287,199) (3,997,003) (861,956) - - (4,858,959) (15,502,218) (2,780,675) - - (18,282,893) (19,715,244) (3,713,807) - - (23,429,051) 50,951,650 1,231,873 - - 54,078,288 $ 62,501,626 $ 2,777,221 $ (209,761) $ - $ 66,963,851 Depreciation expense for business -type activities for the fiscal year ended June 30, 2009 was charged as follows: Transit Total depreciation expense 57 $ 3,713,807 $ 3,713,807 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4, LONG-TERM DEBT The following is a summary of long-term debt transactions of the City for the year ended June 30, 2009: Governmental Activities: Lease Revenue Bonds: Series 2007 Plus deferred amount for issuance premium Total Lease Revenue Bonds Certificates of Participation Balance July 1, 2008 Additions $ 13,57500 $ Classification Balance Due Within Due More Deletions June 30, 2009 One Year Than One Year $ (24500) $ 13,330,000 $ 255,000 $ 13,075,000 104,570 (3,658) 100,912 - 100,912 13,679,570 (24808) 13,430,912 25500 13,175,912 Refunding, Series 2005 15,790,000 Series 2007 15,52500 Less deferred amounts: 5530 For issuance discounts (78,172) On refunding (323,459) Total Certificates of Participation X913,369 2,471,047 Tax Allocation Bonds: Series 2008 Housing Set -Aside Less deferred amounts: For issuance discounts Total Tax Allocation Bonds Capital leases payable Loans payable Compensated absences Claims payable Total 29,860,000 8,850,000 (1,000,000) 14,790,000 1,0301000 131760,000 15,525,000 1552500 4,614 (73,558) (73558) 27528 (295,931) (295,931) (967,858) 29,945,511 1,030,000 28,915,511 2900,000 400,000 29,460,000 8,85000 120,000 8,730,000 (165,90(i) 5530 (160,376) - (160,376) 38,544,094 5530 38,549,624 520,000 38,029,624 23,676 (12,788) 10,888 9,278 1,610 3593,734 - (769,827) 2,823,907 805,972 2,017,935 1,993,279 1,770,398 (1,292,630) 2,471,047 285,797 2,185,250 70,000 - (20,000) 50,000 - 50,000 $ 88,817,722 $ 1,770,398 $ (3,306,231) $ 87,281,889 $ 2,906,047 $ 84,375,842 58 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4, LONG-TERM DEBT, Continued Governmental Activities Lease Revenue Bonds - Series 2007 On January 16, 2007, the Authority issued $13,785,000 Lease Revenue Bonds, Series 2007. Concurrent with this bond issuance, the Authority entered into a lease and lease -back arrangement with the City whereby the Authority used the proceeds of the bond issuance to make a lump -sum lease payment to the City. In return, the City will make lease -back payments to the Authority sufficient to cover the principal and interest due on the Series 2007 Bonds. The property subject to the lease and lease -back arrangement is City Hall. The City used the proceeds from the lump -sum lease payment to make a valuation deposit with the Los Angeles County Superior Court in connection with the acquisition of right-of-ways. Principal amounts on serial bonds mature annually each February 1 in the years 2008 through 2018 and bear interest at rates ranging from 4.0% to 5.0%. $2,495,000 term bonds mature February 1, 2033 and bear interest at 4.3%. $2,965,000 term bonds mature February 2037 and bear interest at 4.375%. Interest is payable semi-annually on February 1 and August 1, commencing August 1, 2007. The term bonds maturing February 1, 2033 are subject to mandatory redemption commencing February 1, 2030. The term bonds maturing February 1, 2037 are subject to mandatory redemption commencing February 1, 2034. Bonds maturing on or after February 1, 2018 are subject to optional redemption on or after February 1, 2017. The total principal and interest remaining to be paid on the Bonds is $23,038,848 as of June 30, 2009. For the current year, principal and interest paid on the Bonds was $822,156 and property tax increment net revenues were $27,212,480. The Bonds required 3% of net revenues. The outstanding balance of the Bonds was $13,330,000 at June 30, 2009. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Principal 2010 $ 255,000 $ 2011 2012 2013 2014 2015-2019 2020-2024 2025-2029 2030-2034 2035-2037 Total 270,000 280,000 295,000 310,000 1,750,000 2,125,000 2,585,000 3,190,000 Interest 566,460 555,304 541,804 527,804 513,054 2,368,469 1,990,069 1,521,913 922,504 Total 821,460 825,304 821,804 822,804 823,054 4,118,469 4,115,069 4,106,913 4,112,504 2,270,000 201,469 2,471,469 $ 13,330,000 $ 91708,848 S 23,038,848 59 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4, LONG-TERM DEBT, Continued Governmental Activities, Continued The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2009: Balance July 1, 2008 Additions Deletions Balance June 30, 2009 $ 104,570 $ $ (3,658) $ 100,912 Amortization expense was $3,658 for June 30, 2009. Refunding Certificates of Participation - Series 2005 On July 1, 2005, the Authority issued $17,700,000 in Certificates of Participation with an average interest rate of 3.4% to advance refund $17,640,000 of outstanding 1997 Series certificates with an average interest rate of 4.9%. These securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1997 series certificates. As a result, the 1997 Series certificates are considered to be defeased, and the liability for those certificates has been removed from the long-term liabilities. The defeased 1997 Series certificates have been retired. The Authority amended and restated the lease agreement with the City that was entered into simultaneously with the refunded certificates issue. Principal amounts mature annually each October 1 in the years 2006 through 2020 and bear interest at rates ranging from 3.0% to 4.0%. Interest is payable semi-annually on April 1 and October 1. The certificates maturing on or after October 1, 2016, are subject to optional prepayment on any date on or after October 1, 2015, at a price equal to the principal amount plus accrued interest to the prepayment date, without premium. The annual debt service requirements on these bonds are as follows: Year Ending June 30, Principal Interest Total 2010 $ 1,030,000 $ 501,751 $ 1,531,751 2011 11060,000 470,401 1,530,401 2012 1,090,000 438,151 1,528,151 2013 11125,000 404,223 1,529,223 2014 11160,000 368,085 1,528,085 2015-2019 61410,000 11197,675 7,6071675 2020-2021 2,915,000 117,700 3,032,700 Total $ 14,790,000 $ 3,497,987 $ 18,287,987 60 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4, LONG-TERM DEBT, Continued Governmental Activities, Continued The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2009: C July 1, 2008 Additions Deletions June 30, 2009 $ (78,172) $ - $ 4,614 $ (73,558) The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the bonds. This difference is considered to be a deferred loss on refunding. The deferred loss on refunding, reported in the basic financial statements as a deduction from long-term debt, is amortized on a straight-line method over 20 years. The following is a summary of unamortized deferred loss on refunding outstanding at June 30, 2009: C July 1, 2008 Additions Deletions June 30, 2009 $ (32 3,459) $ $ 27,528 $ (295,931) Amortization expense was $32,142 for June 30, 2009. Certificates of Participation - Series 2007 On December 12, 2007, the Authority issued $15,525,000 in Certificates of Participation to provide financing for the costs of acquiring open space lands, parks, and parkland in accordance with the City's open space, park and parkland programs, purchase a reserve fund surety and fund the costs of delivery of the Certificates. The Certificates are backed by lease payments to be made by the City to the Authority for the use and occupancy of the Aquatic Center and Sports Complex. The Certificates were issued at a discount of $60,776, which will be amortized and recognized as interest expense over the life of the debt on a straight-line basis for government -wide financial statement purposes. This issuance is comprised of $6,000,000 serial certificates maturing annually on October 1 from 2011 to 2028 and two term certificates (totaling $9,525,000) maturing on October 1, 2033 and October 1, 2037 that are payable in annual sinking fund installments commencing October 1, 2029. Interest on the certificates is payable semi-annually on October 1 and April 1 at rates ranging from 4.00% to 4.60% for the serial certificates and 4.75% for the term certificates. 61 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4, LONG-TERM DEBT, Continued Governmental Activities, Continued The annual debt service requirements on these bonds are as follows: Year Ending June 30, Principal Interest 2010 $ - $ 713,651 2011 - 713,651 2012 35,000 712,951 2013 60,000 711,051 2014 90,000 708,051 2015-2019 930,000 3;451,856 2020-2024 11855,000 3,1701164 2025-2029 3,030,000 2,633,710 2030-2034 41535,000 1,755,956 2035-2038 4,990,000 493,763 Total $ 151525,000 $ 15,064,806 Tax Allocation Bonds - Series 2008 Total $ 713,651 713,651 747,951 771,051 798,051 4,381,856 5,025,164 5,663,710 6,290,956 5,483,763 $ 30,5891806 On June 12, 2008, the Agency issued the Santa Clarita Redevelopment Agency Tax Allocation Bonds, Series 2008 (2008 Bonds) in the amount of $29,860,000. Proceeds of the 2008 Bonds will be used to finance certain redevelopment projects of the Agency, fund a debt service reserve account, and pay for costs of the bond issuance. The bonds were issued at a net discount of $165,906, which will be amortized and recognized as interest expense over the life of the debt on a straight-line basis for government -wide financial statement purposes. This bond issue is comprised of $12,065,000 serial bonds maturing annually on October 1 through 2028 and three term bonds (totaling $17,795,000) maturing on October 1, 2032, October 1, 2037, and October 1, 2042 that are payable in annual sinking fund installments commencing October 1, 2029. Interest on the 2008 Bonds is payable semi-annually on October 1 and April 1 at rates ranging from 4.00% to 4.75% for the serial bonds and 4.75% to 5.00% for the term bonds. The total principal and interest remaining to be paid on the Bonds is $60,181,010 as of June 30, 2009. For the current year, principal and interest paid on the Bonds was $1,104,098 and property tax increment net revenues were $3,202,114. The Bonds required 34% of net property tax increment revenues. The outstanding balance of the Bonds was $29,860,000 at June 30, 2009. 62 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG-TERM DEBT, Continued Governmental Activities, Continued The annual debt service requirements on these bonds are as follows: Year Ending June 30, 2010 2011 2012 2013 2014 2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 2040-2043 Total Principal $ 400,000 $ 420,000 435,000 450,000 470,000 2,655,000 3,230,000 4,005,000 5,050,000 6,395,000 6,350,000 Interest 1,380,148 1,363,748 1,346,648 1,328,948 1,310,548 6,248,638 5,651,066 4,849,191 3,783,053 2,404,775 654,250 Total $ 1,780,148 1,783,748 1,781,648 1,778,948 1,780;548 8,903,638 8,881,066 8,854,191 8,833,053 8,799,775 7,004,250 $ 29,860,000 $ 30,321,010 $ 60,181,010 Tax Allocation Bonds - Housing Set -Aside On June 2008, the Agency issued the Santa Clarita Redevelopment Agency Housing Set -Aside Tax Allocation Bonds, Series 2008 (Housing Set -Aside Bonds) in the amount of $8,850,000. Proceeds of the Housing Set -Aside Bonds will be used to finance low and moderate income housing projects and programs, fund a reserve fund, and pay for costs of the bond issuance. The bonds were issued at a net discount of $5,241. The bond issue is comprised of $3,550,000 serial bonds maturing annually on October 1 through 2028 and three term bonds (totaling $5,300,000) maturing on October 1 , 2032, October 1, 2037, and October 1, 2042 that are payable in annual sinking fund installments commencing October 1, 2029. Interest on the Housing Set -Aside Bonds is payable semi-annually on October 1 and April 1 at rates ranging from 4.00% to 4.875% for the serial bonds and 5.00% for the term bonds. The total principal and interest remaining to be paid on the Bonds is $17,999,159 as of June 30, 2009. For the current year, principal and interest paid on the Bonds was $332,575 and property tax increment net revenues were $800,529. The Bonds required 41% of net property tax increment revenues. The outstanding balance of the Bonds was $8,850,000 at June 30, 2009. 63 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG-TERM DEBT, Continued Governmental Activities, Continued The annual debt service requirements on the Housing Set -Aside Bonds are as follows: Year Ending June 30, 2010 2011 2012 2013 2014 2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 2040-2043 Total Principal $ 120,000 125,000 125,000 135,000 140,000 780,000 945,000 1,180,000 1,500,000 1,905,000 1,895,000 $ 8,850,000 Interest $ 415,156 410,256 405,256 400,056 394,556 1,883,181 1,707,825 1,471,122 1,145,000 721,375 195,375 $ 9,149,159 Total $ 535,156 535,256 530,256 535,056 534,556 2,663,181 2,652,825 2,651,122 2,645,000 2,626,375 2,090,375 $ 17,999,159 The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2009: Balance Balance July 1, 2008 Additions Deletions June 30, 2009 $ (165,906) $ $ 5530 $ (160,376) Amortization expense was $5,530 for June 30, 2009. Capital Leases Payable In August 2005, the City entered into a lease with an option to purchase agreement in the amount of $40,608 for the lease of a copier. Payments of $812 are due monthly through August 2010. Future lease payment requirements are as follows: Year Ending June 30, Principal 2010 $ 9,278 2011 1,610 Total $ 10,888 m Interest Total $ 468 $ 91746 14 1,624 $ 482 $ 11,370 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG-TERM DEBT, Continued Governmental Activities, Continued Capital Leases Payable The remaining assets acquired through existing capital leases are as follows: Loans Payable Assets: Equipment $ 40,608 Less: accumulated depreciation (15,566) Total assets, net $ 25,042 Balance Balance Due within Due in more July 1, 2008 Additions Deletions June 30, 2009 one year than one year HUD Loans $ 11960,000 $ - $ (230,000) $ 1,730,000 $ 230,000 $ 1500,000 2002 Zion First National Bank 548,857 - (127,833) 421,024 133,835 287,189 2003 Zion First National Bank 1,084,877 - (411,994) 672,883 442,137 230,746 Total $ 3,593,734 S - $ (769,827) S 2,823,907 $ 805,972 S 2,017,935 HUD Loans In December 1999, the City entered into a loan agreement with the Secretary of Housing and Urban Development in the amount of $2,000,000. The purpose of this loan was to provide financing for the installation of curbs, gutters and sidewalks in the West Newhall area. Payments are due semi-annually, commencing on August 1, 2001, and continuing through August 1, 2014. Future CDBG grant funding will be used to repay the loan. The interest rate on this loan is fixed. In August 2002, the City entered into a loan agreement with the Secretary of Housing and Urban Development in the amount of $1,150,000. The purpose of this loan was to provide financing for the construction of improvements to Scherzinger Lane. Payments are due semi-annually, commencing on February 1, 2003, and continuing through August 1, 2017. Future CDBG grant funding will be used to repay the loan. The interest rate on this loan is fixed. In August 2002, the City entered into a loan agreement with the Secretary of Housing and Urban Development in the amount of $350,000. The purpose of this loan was to assist the Boys and Girls Club in financing the construction of a new gymnasium. Payments are due semi-annually, commencing on February 1, 2003, and continuing through August 1, 2017. Future CDBG grant funding will be used to repay the loan. The interest rate on this loan is fixed. 65 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG-TERM DEBT, Continued Governmental Activities, Continued Future loan payment requirements are as follows: Year Ending June 30, Principal 2010 $ 230,000 2011 230,000 2012 230,000 2013 230,000 2014 230,000 2015-2018 580,000 Total $ 11730,000 2002 Zion National Bank Loan Interest $ 92,974 88,424 73,949 59,184 44,056 52,408 $ 410,995 Total $ 322,974 318,424 303,949 289,184 274,056 632,408 $ 2,1401995 On April 8, 2002, the City entered into a lease purchase agreement with the Authority to finance the purchase of real property that was developed as an employee parking lot for the City. The Authority assigned all of its rights under the lease purchase agreement to Zions First National Bank. In consideration of this assignment, Zions First National Bank advanced the City $1,200,000. The lease purchase agreement calls for interest at a rate of 4.79% per annum on the unpaid balance. Principal and interest are payable to Zions First National Bank semi-annually, commencing on October 8, 2002, and continuing through April 8, 2012. The asset acquired with the loan proceeds is reported in the governmental activities' capital assets as land (not being depreciated). Future payment requirements are as follows: Year Ending June 30, 2010 2011 2012 Total 2003 Zion National Bank Loan Principal $ 133,835 140,322 146,867 Interest $ 18,595 12,108 5,307 Total $ 152,430 152,430 152,174 $ 421,024 $ 36,010 $ 457,034 On October 3, 2003, the City entered into a seven year fixed rate lease/leaseback transaction for certain capital transfer facilities with the Authority. The Authority assigned all of its rights under the leaseback transaction to Zions First National Bank. In consideration of this assignment, Zions First National Bank loaned the Authority $2,590,955, which the Authority used to pay the up -front rental payment due to the City. This amount was used to prepay, in full, the note payable to Price Enterprise, Inc. The balance of the proceeds were used to pay for delivery costs. The lease/leaseback transaction calls for the City to make semi-annual payments of principal and interest to Zions First National Bank, commencing on May 1, 2004. Interest is fixed at a rate of 3.64%. W City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 4. LONG-TERM DEBT, Continued Governmental Activities, Continued Future payment requirements are as follows: Year Ending June 30, Principal Interest Total 2010 $ 442,137 $ 20,570 $ 462,707 2011 230,746 4,200 234,946 Total $ 672,883 $ 24,770 $ 697,653 Compensated absences There is no fixed payment schedule for earned but unpaid compensated absences. Business -Type Activities Capital Leases Payable In December 1998, the City entered into a lease with an option to purchase agreement in the amount of $2,335,964 for the lease of six buses. Such agreement carries interest at 4.77%, payable annually on December 31 through 2010. Future lease payment requirements are as follows: Year Ending June 30, Principal Interest Total 2010 $ 237,000 $ 23,148 $ 260,148 2011 248,304 11,844 260,148 Total $ 485,304 $ 34,992 $ 520,296 The remaining book value of assets acquired through the above capital leases are as follows: Assets: Equipment Less: accumulated depreciation Total assets, net 67 $ 3,875,196 (31508,377) $ 366,819 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 5, LOANS RECEIVABLE The City has provided deferred -payment rehabilitation loans to qualified homeowners in connection with CDBG and HOME rehabilitation programs. The loans receivable balance totaling $1,307,138 at June 30, 2009, has been offset by deferred revenue in other governmental funds, since these loans are not available to finance current expenditures. 6, INTERFUND TRANSACTIONS Due To/Due From - At June 30, 2009, the City had the following short-term interfund receivables and payables. 0 F" Non -Major Governmental Funds q Total Due From Other Funds General Total $ 31802,017 $ 31802,017 $ 3,802,017 $ 31802,017 Bridge and Thoroughfare C v ORDA Debt Service The General Fund amounts were made to cover negative cash situations. The interfund payables balance represents routine and temporary cash flow assistance from the General Fund until the amounts receivable from other governments are collected to reimburse eligible expenditures. Long -Term Advances - At June 30, 2009, the City had the following interfund long-term advances: Advances To Other Funds Bridge and General Thoroughfare Developer Fees Self Insurance Total 493,829 $ 18,334,071 $ - $ 865,790 $ 19,693,690 17,328,884 600,422 17,929,306 $ 17,822,713 $ 18,334,071 $ 600,422 $ 865,790 $ 37,622,996 Advances between funds are to fund capital projects. Repayments will be funded w developer Governmental Funds: $ w Bridge and Thoroughfare C v ORDA Debt Service Q Total Advances To Other Funds Bridge and General Thoroughfare Developer Fees Self Insurance Total 493,829 $ 18,334,071 $ - $ 865,790 $ 19,693,690 17,328,884 600,422 17,929,306 $ 17,822,713 $ 18,334,071 $ 600,422 $ 865,790 $ 37,622,996 Advances between funds are to fund capital projects. Repayments will be funded through future developer fees and tax increment revenues. 0 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 6, INTERFUND TRANSACTIONS, Continued Transfers - At June 30, 2009, the City had the following transfers: Transfers Out Redevelopment Redevelopment Other Agency Debt Agency Capital Governmental Transit Enterprise Service Fund Projects Fond Funds Fund Total $ - $ - $ 1,901,323 $ 1501000 $ 4551,323 - - 515,517 1,114,374 - - 1,114,374 Capital Projects Fund Open Space 9,889 - 15,122 Preservation Other Governmental Funds District Special - - 1,851,715 General Fund Revenue Fund Transfers In - - - - 8,172,930 - 8,172,930 General Fund $ 2,500,000 $ Bridge and Thoroughfare 515,517 - Open Space Preservation District 9,255,694 710,507 Special Revenue Fund - - Redevelopment Agency (6,678) Debt Service Fund - - Redevelopment Agency (6,810) Redevelopment Redevelopment Other Agency Debt Agency Capital Governmental Transit Enterprise Service Fund Projects Fond Funds Fund Total $ - $ - $ 1,901,323 $ 1501000 $ 4551,323 - - 515,517 1,114,374 - - 1,114,374 Capital Projects Fund 45,851 - 9,889 - 15,122 - 70,862 Other Governmental Funds 3,069,326 710,507 - - 1,851,715 16,802 5,648,350 Transit Enterprise - - - - 8,172,930 - 8,172,930 Internal Service Funds 3,125,000 - - - - - 3,125,000 Total 9,255,694 710,507 9,889 1,114,374 11,941,090 166,802 $ 23,198,356 BJA Law Enforcement Special Revenue Fund (6,678) Supplemental Law Enforcement Revenue Fund (33,204) Transfers provide funding for capital projects, capital acquisitions, and debt service. 7. INDIVIDUAL FUND DISCLOSURES A. Deficit Fund Balances Funds which have a deficit fund balance at June 30, 2009, are as follows: Fund Deficit Fund Balance Major Funds: Bridge and Thoroughfare $ (3,838,879) Redevelopment Agency Debt Service Fund (17,004,471) Other Governmental Funds: State Park Special Revenue Fund (16,880) Air Quality Management District Revenue Fund (50,949) Miscellaneous Grants Special Revenue Fund (871,730) Sewer Maintenance Special Revenue Fund (18,930) Federal Urban Aid (480,000) BJA Law Enforcement Special Revenue Fund (6,678) Supplemental Law Enforcement Revenue Fund (33,204) Library Facility Fees Revenue Fund (6,810) Federal Grants Special Revenue Fund (3,031,500) The City plans to remove these deficits through transfers from the General Fund, receipt of developer fees, receipt of tax increment revenues and receipt of deferred grant revenues from other government agencies. M City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 7, INDIVIDUAL FUND DISCLOSURES, Continued B. Expenditures In Excess Of Appropriations For the year ended June 30, 2009, expenditures exceeded appropriations in the following programs/ functions (legal level of budgetary control) of the respective funds: 8, DEFINED BENEFIT PENSION PLAN Plan Description: The City contributes to the California Public Employees' Retirement System (CALPERS), an agent multiple - employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of CalPERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814. Funding Policy: Participants are required to contribute 8% of their annual covered salary. The Excess Expenditures Funds Appropriations Expenditures over Appropriations General Fund: determined rate; the rate for the year ended June 30, 2009, was 10.943% for non -safety Debt Service $ 35,844 $ 74,856 $ 39,012 Bridge and Thoroughfare Special Revenue Public Works 154,053 21,500,307 21,346,254 Debt Service - 688,463 688,463 Non -Major Governmental Funds: Special Assessment Special Revenue General government 2,4261087 2,838,122 412,035 State Park Special Revenue Parks and Recreation 190,607 200,041 9,434 8, DEFINED BENEFIT PENSION PLAN Plan Description: The City contributes to the California Public Employees' Retirement System (CALPERS), an agent multiple - employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of CalPERS' annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814. Funding Policy: Participants are required to contribute 8% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the rate for the year ended June 30, 2009, was 10.943% for non -safety employees. The contribution requirements of plan members and the City are established and maybe amended by CalPERS. 70 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 8, DEFINED BENEFIT PENSION PLAN, Continued Annual Pension Cost: For 2009, the City's annual pension cost of $5,060,293 for CalPERS was equal to the City's required and actual contribution. The required contribution was determined as part of the June 30, 2006, actuarial valuation using the entry age normal actuarial cost method. The contributions were determined as a level percent of payroll over an average remaining period of fifteen years from the valuation date. The actuarial assumptions included (a) a 7.75% investment rate of return (net of administrative expenses), (b) projected annual salary increases of 3.25% to 14.45%, depending on age, service and type of employment, (c) an inflation rate of 3.00%, (d) a payroll growth rate of 3.25%. The actuarial value of CAPERS' assets was determined using techniques that smooth the effect of short-term volatility in the market value of investments over a three-year period (smoothed market value). Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into CaIPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20 -year period. Gains and losses that occur in the operation of the plan are amortized over a rolling period, which results in an amortization of 6% of unamortized gains and losses each year. If the plans accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 -year amortization period. THREE-YEAR TREND INFORMATION FOR PERS Funded Status and Funding Progress: As of June 30, 2007, the most recent actuarial valuation date, the plan was 83.9% funded. The actuarial accrued liability for benefits was $60.401 million, and the actuarial value of assets was $50.699 million, resulting in an unfunded actuarial accrued liability (UAAL) of $9.702 million. The covered payroll (annual payroll of active employees covered by the plan) was $22.981 million, and the ratio of the UAAL to the covered payroll was 42.2%. The schedule of funding progress presented below, presents 3 years of trend information about the actuarial value of plan assets and the actuarial accrued liability for benefits. Actuarial Annual Percentage of Assets Pension Cost of APC Net Pension Fiscal Year (APC) Contributed Obligation 6/30/2007 $ 4,280,000 100% $ - 6/30/2008 4,622,000 100% - 6/30/2009 5,060,293 100% - Funded Status and Funding Progress: As of June 30, 2007, the most recent actuarial valuation date, the plan was 83.9% funded. The actuarial accrued liability for benefits was $60.401 million, and the actuarial value of assets was $50.699 million, resulting in an unfunded actuarial accrued liability (UAAL) of $9.702 million. The covered payroll (annual payroll of active employees covered by the plan) was $22.981 million, and the ratio of the UAAL to the covered payroll was 42.2%. The schedule of funding progress presented below, presents 3 years of trend information about the actuarial value of plan assets and the actuarial accrued liability for benefits. Actuarial Actuarial Value Valuation of Assets Date (A) 6/30/2005 $ 36,024 $ 6/30/2006 42,487 6/30/2007 50,699 Schedule of Funding Progress for PERS Most Current Available (in thousands) (Overfunded) Actuarial Liability as Percentage of Covered Payroll (C/E) 40.9% 36.8% 42.2% Unfunded (Overfunded) Entry Age Actuarial Actuarial Accrued Funded Accrued Liability Liability (B -A) Ratio (A/B) Covered Payroll (B) (C) (D) (E) 44,138 $ 8,114 81.6% $ 19,842 50,463 7,976 84.2% 21,669 60,401 9,702 83.9% 22,981 71 (Overfunded) Actuarial Liability as Percentage of Covered Payroll (C/E) 40.9% 36.8% 42.2% City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 9, POST EMPLOYMENT HEALTH BENEFITS Plan Description. City retirees, spouse and eligible dependents, receive health plan coverage through the CAPERS Health Plan (Plan). The Plan is a defined benefit plan. The Plan provides medical and dental insurance benefits to eligible retirees and their spouses and dependents. Eligibility. City employees are eligible who have a service retirement from the City at age 50 with five or more years of service are eligible to receive postemployment medical benefits. Employees who have a disability retirement or retire directly from the City are also eligible. Participants as of July 1, 2006 Total Active employees 326 Retirees 22 Total 348 Funding Policy. The contribution requirements are established and amended by the City. The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2009, the City contributed $283,027 to the plan. For fiscal year 2008-2009, the City contributed, on an individual basis, for employees and retirees the following amounts: 989.11 Unrepresented $ 989.11 SEIU Local 347 $ 989.11 Annual OPEB Cost and Net OPEB Obligation. The City's annual Other Postemployment Benefit (OPEB) cost (expense) is calculated based on the Annual Required Contribution of the Employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excesses) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB Obligation to the Plan: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Increase in net OPEB obligation Net OPEB obliation - beginning of year Net OPEB obliation - end of year 72 Total $ 3,98000 3,984,000 (283,027) 3,700,973 $ 3,700,973 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 9, POST EMPLOYMENT HEALTH BENEFITS, Continued The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009 was as follows: Fiscal Annual Year OPEB Ended Cost 6/30/2009 $ 31984,000 of Annual Net OPEB Cost OPEB Contributed Obligation 7.1% $ 3,700,973 Funded Status and Funding Progress. As of July 1, 2006, the most recent actuarial valuation date, the plan was zero percent funded. The Actuarial Accrued Liability for benefits was $24,046,000, and the actuarial value of assets was $0, resulting in an UAAL of $24,046,000. The covered payroll (annual payroll of active employees covered by the plan) was $21,200,000 and the ratio of UAAL to the covered payroll was 113.42 percent. The most recent available funding progress is listed below. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the Actuarial Accrued Liabilities for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2006, actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 4.25% investment rate of return which is based on the expected return on funds invested by CaIPERS, and an annual healthcare cost trend rate of 9.70% initially and reduced by decrements of 0.6% to an ultimate rate of 4.5% thereafter. The actuarial value of assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period. The UAAL is being amortized as level percentage of projected payroll on an open basis. The remaining amortization period at July 1, 2006, was 30 years. 73 Unfunded Actuarial Actuarial (Unfunded) Liability as Actuarial Actuarial Accrued Actuarial Percentage of Valuation Asset Liability Accrued Funded Covered Covered Date Value Entry Age Liability Ratio Payroll Payroll 7/1/2006 $ $ 241046,000 $ (24,046,000) 0.0% $ 21,889,000 109.85% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the Actuarial Accrued Liabilities for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2006, actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 4.25% investment rate of return which is based on the expected return on funds invested by CaIPERS, and an annual healthcare cost trend rate of 9.70% initially and reduced by decrements of 0.6% to an ultimate rate of 4.5% thereafter. The actuarial value of assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period. The UAAL is being amortized as level percentage of projected payroll on an open basis. The remaining amortization period at July 1, 2006, was 30 years. 73 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 10, DEFERRED COMPENSATION PLAN/DEFINED CONTRIBUTION PLAN The City has established Deferred Compensation/ Defined Contribution plans for certain classifications of management under Internal Revenue Service Code Section 401(a). City participation in contributions to the plans is mandatory. The City is obligated to contribute amounts ranging from $2,000 to $16,500 per participant per year. Employee contributions to certain plans are voluntary. During the year ended June 30, 2009, there were 619 participants in the plans. The City contributions totaled $197,798, and employees' contributions totaled $1,877,640. 11. RESERVES AND DESIGNATIONS OF FUND BALANCES The City's reserves and designations at June 30, 2009, are tabulated below, followed by explanations as to the nature and purpose of each reserve and designation. Reserves Encumbrances Prepaid costs Deposits Debt service Land held for resale Low/moderate income housing Open space preservation district Advance to other funds Total Reserves Unreserves Designated: Self-insurance Special revenue purposes Capital improvements Undesignated Total unreserves Special Revenue Funds Open Space Bridge and Preservation General Fund Thoroughfare Developer Fees District $ 1,272,356 $ 3,737,639 $ 492,707 $ 741,301 191,263 - - - 13,330,807 - - 253,000 Redevelopment Redevelopment Other Agency Debt Agency Capital Governmental Service Projects Funds $ - $ 1,685,390 $ 735,459 - - - - 571,063 - - - 1,607,196 - - - - - 11,968,628 - 16,649,100 17,822,713 18,334,071 60OA22 - 32,617,139 22,071,710 1,093,129 17,643,401 220,616 - 3,292,586 13,275,150 776,260 - - - 25,010,146 41,061,442 (25,910589) - - 41,282,058 (25,910589) 776,260 - 34502,270 4,769,573 (17,004,471) - 1,598,033 (17,004,471) 34502,270 31,377,752 Total fund balance $ 73,899,197 $ (3,838,879) $ 1,869,389 $ 17,643,401 $ (17,004,471) $ 37,794,856 $ 44,652,902 74 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 11, RESERVES AND DESIGNATIONS OF FUND BALANCES, Continued Special Revenue Funds A. Reserved for Encumbrances - Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. B. Reserve for Prepaid Costs - This reserve is for prepaid costs since they are not available as a resource to meet expenditures of the current year. C. Reserved for Deposits - This reserve is for deposits since they are not available as a resource to meet expenditures of the current year. D. Reserved for Debt Service - These reserves represent amounts accumulated in accordance with a bond indenture or similar covenant. E. Reserved for Land Held for Resale - This reserve is for land held for resale by the Agency since it is not available as a resource to meet expenditures of the current year. F. Reserve for Low/Moderate Income Housing - This reserve is for amounts set-aside from tax increment money received by the Agency for the purpose of spending on projects that benefit low/moderate income households. G. Reserved for Advances to Other Funds - This reserve is established to reflect the advances to the Open Space Redevelopment Other General Bridge and Developer Preservation Agency Capital Governmental Fund Thoroughfare Fees District Projects Funds Designations J. Designated for Capital Improvements - These funds are designated to provide for new capital Self-insurance $ 220,616 $ - $ - $ - $ - $ - Special revenue purposes - - - - - 25,010,146 Capital improvements - - - - - 4,769,573 Total Designations $ 220,616 $ - $ - $ - $ - $ 29,779,719 A. Reserved for Encumbrances - Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. B. Reserve for Prepaid Costs - This reserve is for prepaid costs since they are not available as a resource to meet expenditures of the current year. C. Reserved for Deposits - This reserve is for deposits since they are not available as a resource to meet expenditures of the current year. D. Reserved for Debt Service - These reserves represent amounts accumulated in accordance with a bond indenture or similar covenant. E. Reserved for Land Held for Resale - This reserve is for land held for resale by the Agency since it is not available as a resource to meet expenditures of the current year. F. Reserve for Low/Moderate Income Housing - This reserve is for amounts set-aside from tax increment money received by the Agency for the purpose of spending on projects that benefit low/moderate income households. G. Reserved for Advances to Other Funds - This reserve is established to reflect the advances to the Redevelopment Agency, so they will not be considered as current funds available. H. Designated for Self-insurance - This designation is held to cover any shortfalls in the Self-insurance Internal Service Fund. I. Designated for Special Revenue Purposes - These funds are designated for specific special revenue purposes, as restricted by law or administrative action. J. Designated for Capital Improvements - These funds are designated to provide for new capital additions, as determined by the City Council. 75 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 12. SELF INSURANCE The City joined Special Districts Risk Management Authority (SDRMA) in the fall of 2005. SDRMA is a self insurance risk pool that serves as a not-for-profit public agency to its members. Through SDRMA the City currently holds a $500 general liability deductible. All general liability claims above $500 and up to a limit of $10,000,000 are handled by SDRMA. On June 30, 2009, $50,000 was accrued by the City for general liability claims that were received prior to the partnership with SDRMA. While the ultimate amounts of losses that occurred prior to SDRMA are dependent of 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. The City's workers' compensation coverage is also administered by SDRMA. The City is under statutory workers' compensation coverage and claims are handled by SDRMA up to a limit of $5,000,000 per occurrence. 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, 2009. Changes in the reported liability since June 30, 2006 resulted in the following: Liability as of June 30, 2007 $ 100,000 Claims and changes in estimates during the year ended June 30, 2008 1,251,935 Claims and payments during the year ended June 30, 2008 (1,281,935) Liability as of June 30, 2008 $ 70,000 Claims and changes in estimates during the year ended June 30, 2009 1,854,791 Claims and payments during the year ended June 30, 2009 (1,874,791) Liability as of June 30, 2009 $ 50,000 13. SEGMENT INFORMATION Net working capital (deficit) of the Transit Enterprise System at June 30, 2009, was as follows: Current assets Current liabilities payable from current assets Net working capital (deficit) 76 $ 6,5271941 (2,976,808) $ 3,5511133 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 14, NO COMMITMENT DEBT 1915 Act Limited Obligation Improvements Bonds A. On September 2, 1992, $879,432 of 1915 Act Limited Obligation Improvement Bonds (1915 Golden Valley Road Bonds) for the Golden Valley Road Improvement Assessment District (Assessment District) were issued. The 1915 Golden Valley Road Bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Assessment District. The principal amount of debt outstanding at June 30, 2009, was $555,000. B. On January 13, 2001, $790,000 of 1915 Act Limited Obligation Improvement Bonds (1915 Vermont Drive/Everett Drive Bonds) for the Vermont Drive/Everett Drive Improvement Assessment District (Assessment District) were issued. The 1915 Vermont Drive/Everett Drive Bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Assessment District. The principal amount of the debt outstanding at June 30, 2009, was $590,000. Community Facilities District No. 2002-1 Special Tax Bonds On October 29, 2002, $17,370,000 of Special Tax bonds were issued for Community Facilities District No. 2002-1 (Community Facilities District). The Special Tax bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Community Facilities District. The principal amount of the debt outstanding at June 30, 2009, was $17,105,000. 15. SANTA CLARITA WATERSHED RECREATION AND CONSERVANCY AUTHORITY In June 1992, the City entered into a joint powers agreement with the Santa Monica Mountains Conservancy (Conservancy) to create the Santa Clarita Watershed Recreation and Conservancy Authority (the Watershed Authority). The purpose of the Watershed Authority is to acquire, develop and conserve additional park and open space lands, including water -oriented recreation and conservation projects. The governing board consists of two representatives from the Conservancy and two from the City. Upon termination of the agreement, personal property and funds will be returned to the originating party. Any real property owned by the Watershed Authority shall be conveyed to the City unless the Watershed Authority deems otherwise. The City performs administrative functions for the Watershed Authority; however, it does not have an equity interest. Financial statements of the Watershed Authority may be obtained at the City's administrative offices. 77 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 16. COMMITMENTS AND CONTINGENCIES The City has active construction projects as of June 30, 2009. At year-end, the City's commitments with contractors for the projects are as follows: Project Streets Bridges Traffic signals Trails Sidewalk Remaining Commitment $ 11857,483 15,487,597 527,727 135,948 35,647 Total $ 18,044,402 The City has received Federal grants for specific purposes that are subject to review and audit by the Federal government. Although such audits could result in expenditure disallowance under grant terms, and any required reimbursements are not expected to be material. In addition, the City is a defendant in certain other legal actions arising in the normal course of operations. In the opinion of management and legal counsel, any liability resulting from these actions will not result in a material adverse effect on the City's financial position. As of June 30, 2009, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City. Capital Net Assets, 17. PRIOR PERIOD ADJUSTMENTS Government -Wide Financial Statements During the fiscal year ended June 30, 2009, the City recorded the following prior period adjustments in the Government -Wide Financial Statements: Capital assets, net - The City performed a review of its capital assets during the year ended June 30, 2009. As a result of the review, the City identified an error and recorded an adjustment removing some previous capitalized assets that do not belong to the City in the amount of $25,998,334 for governmental activities as of June 30, 2008. This was a continuation of the GASB No. 34 effort. 0 Prior Period Adjustments Net Assets, as Previously Capital Net Assets, Reported Assets, Net as Restated Governmental Activities: Net assets $ 8461201,604 $ (251998,334) $ 820,203,270 0 City of Santa Clarita Notes to Basic Financial Statements, Continued For the year ended June 30, 2009 18. SUBSEQUENT EVENTS Subsequent to June 30, 2009, the State of California (State) decided to borrow, to defer certain revenue payments and to take certain funds from local governments including the City. These amounts are significant to the City and are as follows: 8% of Property Taxes $3.046.488 Redevelopment Agency $1.375.082 Property Taxes borrowed by the State for fiscal year 2009-2010 were nearly $2 billion statewide to help the State's budget shortfall. Legislators and the Governor promised to allow local agencies to sell their eventual repayment from the State to investors to cover the property taxes and to pay the full cost of the sale, or securitization. Passage of Senate Bill 67 (SB67) was accomplished on October 14, 2009. A future bond sale is necessary to complete the funding or securitization. The City has planned to use these funds in the 2009-10 budget. Redevelopment Agency funds have been estimated for a two year takeaway by the State. This decision is to be litigated by the California Redevelopment Association and other parties, with hope that this will be considered unconstitutional, as was last year's State proposed takeaway. 79 This page is intentionally left blank. 0 REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) 81 City of Santa Clarita Required Supplementary Information (Unaudited) For the year ended June 30, 2009 1, BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with generally accepted accounting principles in the United States for all governmental funds, except that encumbrances are shown in the year incurred for budgetary purposes. All annual appropriations lapse at fiscal year end. On or before the last day in January of each year, all operational units submit requests for appropriations to the City Manager for budget preparation purposes. Before April 30, the proposed budget is presented to the City Council for review. The City Council holds public hearings and a final budget must be prepared and adopted no later than June 30. The appropriated budget is prepared by fund, function, and department. The City's department heads, with approval of the City Manager, may make transfers of appropriations within a department and between departments within a fund. The legal level of budgetary control (i.e. the level at which expenditures may not legally exceed appropriations) is the fund level. Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are reported as reservations of fund balances. Unexpended appropriations lapse at year-end. Following are the budget comparison schedules for the General Fund and all major special revenue funds. m City of Santa Clarita Required Supplementary Information (Unaudited), Continued For the year ended June 30, 2009 1. BUDGETARY INFORMATION, Continued Budget Comparison Schedule - General Fund Fund balance, July 1, 2008 Resources (inflows): Taxes Licenses and permits Use of money and property Revenue from other agencies Fines and forfeitures Service charges Other revenue Overhead reimbursement Transfers in Amount available for appropriation Charges to appropriations (outflows): Current: General government Public safety Public works Parks and recreation Community development Debt service: Bond issuance costs Principal retirement Interest and fiscal charges Transfers out Total charges to appropriations Fund balance, June 30, 2009 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) $ 66,074,426 $ 66,074,426 $ 66,074,426 $ 6707,431 65,468,487 645941946 (873541) 4,772,372 4,843,377 3,6971218 (1,146,159) 21121,753 2,1211753 4,730,169 2,608,416 11495,500 1,4421953 1,483,253 40,300 434,225 496,225 402,851 (93,374) 5,8861908 5563,008 5,364,011 (198,997) 3,000 103,000 314,169 211,169 21264,014 2,2641014 2,395549 131535 2,437,981 4,325,197 4551,323 226,126 153,377,610 152,702,440 15307,915 905,475 14,626,661 15,2491045 13,779,808 1,469,237 181542,547 19,002,569 17,155,497 1,847,072 16,569,025 16,988,816 1405,832 2,322,984 20506,388 20,8101228 19,926,371 883,857 4,378,663 4,845,937 4,43066 407,271 - 39,011 (39,011) - 411,994 411,994 - - 35,844 35,845 (1) 3,508,410 6051227 9,25504 (25K467) 78,131,694 84,039,660 79,708,718 4,330,942 $ 75,245,916 S 68,662,780 S 73,899,197 83 $ 5,236,417 City of Santa Clarita Required Supplementary Information (Unaudited), Continued For the year ended June 30, 2009 1. BUDGETARY INFORMATION, Continued Budget Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund Fund balance, July 1, 2008 Resources (inflows): Developer fees Investment income Transfers in Amount available for appropriation Charges to appropriations (outflows): Current: Public works Capital outlay Debt service - interest and fiscal charges Total charges to appropriations Fund balance, June 30, 2009 Budgeted Amounts Original Final $ 15,309,177 $ 15,309,177 Actual Amounts $ 15,309,177 Variance with Final Budget Positive (Negative) 4,954,411 201600,090 14,671,591 (5,928,499) 538,508 538508 1558,040 1,019,532 - 515,517 515,517 - - 2002,096 36,963,292 32,054,325 (008,967) 154,461 154,053 21500,307 (21,346,254) 5,420,450 21,279,225 13,704,434 7,574,791 - - 688,463 (688,463) 5,574,911 21,433,278 35,893,204 (14,459,926) $ 15,227,185 $ 15,530,014 $ (3,838,879) $ (19,368,893) 84 City of Santa Clarita Required Supplementary Information (Unaudited), Continued For the year ended June 30, 2009 1. BUDGETARY INFORMATION, Continued Budget Comparison Schedule - Developer Fees Special Revenue Fund 85 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Fund balance, July 1, 2008 $ 1,1561915 $ 1,156,915 $ 11156,915 $ Resources (inflows): Developer fees 21925,479 569,715 (2,355,764) Investment income 442,201 442,201 11332,025 889,824 Other revenue - - 39,985 39,985 Amount available for appropriation 1,599,116 4,524,595 31098,640 (1,425,955) Charges to appropriations (outflows): Current: Community development - 670,331 97,088 573,243 Capital outlay 122,000 21240,419 11132,163 1,108,256 Total charges to appropriations 122,000 21910,750 1122%251 1,681,499 Fund balance, June 30, 2009 $ 1,477,116 $ 1,613,845 $ 1,869,389 $ 255,544 85 City of Santa Clarita Required Supplementary Information (Unaudited), Continued For the year ended June 30, 2009 1. BUDGETARY INFORMATION, Continued Budget Comparison Schedule - Open Space Preservation District Special Revenue Fund 86 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Fund balance, July 1, 2008 $ 16,435,470 $ 16,435,470 $ 161435,470 $ - Resources (inflows): Taxes 11618,341 1,618,341 11645,398 27,057 Investment income 17,500 17,500 291,006 273,506 Transfers in - 250,000 - (250,000) Amount available for appropriation 181071,311 18,321,311 18,371,874 50,563 Charges to appropriations (outflows): Current: General government 741,652 11478,003 17,966 1,460,037 Transfers out - 710,507 710,507 Total charges to appropriations 741,652 2,1881510 728,473 11460,037 Fund balance, June 30, 2009 $ 17,329,659 $ 16,132,801 $ 17,643,401 $ 1,510,600 86 City of Santa Clarita Required Supplementary Information (Unaudited), Continued For the year ended June 30, 2009 2. DEFINED PENSION PLAN PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS) SCHEDULE OF FUNDING PROGRESS ($ Amount in Thousands) Miscellaneous Employees * Based on most recent actuarial valuation 99 (A) (B) (C) (D) (E) (F) (Unfunded) (Unfunded) Actuarial Entry Age Actuarial Liability as Actuarial Actuarial Actuarial Accrued Funded Annual Percentage of Valuation Value of Accrued Liability Ratio Covered Covered Payroll Date* Assets (AVA) Liability [(B) -(A)] [(A)/(B)] Payroll [(C)/(E)] 6/30/2005 $ 36,024 $ 44,138 $ 8,114 81.62% $ 19,842 40.89% 6/30/2006 42,487 50,463 7,976 84.19% 21,669 36.81% 6/30/2007 50,699 60,401 9,702 83.94% 22,981 42.22% * Based on most recent actuarial valuation 99 City of Santa Clarita Required Supplementary Information (Unaudited), Continued For the year ended June 30, 2009 3. OTHER POST EMPLOYMENT BENEFITS REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress for the City's Plan 0 (A) (B) (C) (D) (E) (F) Unfunded (Unfunded) Actuarial Actuarial Actuarial Liability as Actuarial Actuarial Accrued Accrued Funded Percentage of Valuation Asset Liability Liability Ratio Covered Covered Payroll Date Value Entry Age [(B) -(A)] [(A)/(B)] Payroll [(C)/(E)] 7/1/2006 $ $ 24,0461000 $ (24,046,000) 0.0% $ 21,200,000 113.42% 0 SUPPLEMENTARY INFORMATION F 90 NONMAJOR GOVERNMENTAL FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. the City's unmet transportation needs have been satisfied. 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). These funds may be used for local streets and road expenditures when 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 Dedication - To account for monies received from developers restricted to fund the acquisition and development of new park land space. Proposition A - As "Proposition A" increased sales tax in Los Angeles County by one-half percent (.5%), this fund accounts for financial activity relative to the City's share of these monies "Proposition A" revenue is to be used for transportation -related purposes. Special Assessment - To account for monies received for small 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 (Transportation Development Act) - To account for monies received from the State of California under Article 8 of the 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. AQMD (Air Quality Management District) - To account for revenues and expenditures for Air Quality Management. Landscape Maintenance District #1 - To account for receipts and disbursements related to a landscape district. Stormwater Utility - To account for receipts and disbursements related to stormwater and run-off programs. Miscellaneous Grants - To account for receipts and disbursements for non-federal miscellaneous grants. Sewer Maintenance - To account for monies received from developers as sewer frontage fees to be used to fund sewer maintenance projects. 051 NONMAJOR GOVERNMENTAL FUNDS Federal Aid Urban -To account for receipts and disbursements associated with Federal Urban Aid. 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. HOME - To account for receipts and disbursements for the activity for the HOME grant program. Library Facilities Fees - To account for receipts and disbursements for the library facilities. Public Education and Government - To account for the 1% PEG Capital Grant funds received from video service providers pursuant to Digital Infrastructure and Video Competition Act of 2006. Proposition C - To account for the City's share of the one-half percent (.5%) increased sales tax in Los Angeles County as a result of "Proposition C". This revenue is to be used for transportation related purposes. Federal Grants - To account for receipts and disbursements of miscellaneous federal grant monies not accounted for in other funds. The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest and principal on general long-term debt. Redevelopment Agency Low/Mod To account for principal and interest payments on the Housing Set -Aside Tax Allocation Bonds, Series 2008. Public Financing Authority To account for principal and interest payments on the 1991 Revenue Bonds issued by the Santa Clarita Public Financing Authority. The Capital Projects Funds are used to account for the acquisition or construction of the City's major capital facilities, other than those financed by proprietary funds. General Capital Projects - To account for major capital improvement projects not accounted for in other funds. Redevelopment Agency Low/Mod - To account for the 20% set-aside of tax increment revenues, bond proceeds and other revenues to be used for development of low and moderate income housing. Public Financing Authority - To account for the construction of all capital projects that utilize public financing authority funds. ow 93 City of Santa Clarita Combining Balance Sheet Non -Major Governmental Funds June 30, 2009 Special Revenue Funds LIABILITIES AND Park Special FUND BALANCES Bikeway Gas Tax Dedication Proposition Assessment ASSETS Cash and investments $ 137,445 $ 4,774,609 $ 1,494,390 $ 654,780 $ 6,223,290 Cash and investments with fiscal agents - - - - - Receivables: - - - - - Accounts - 20,731 - - 28,352 Interest 1,284 44,192 13,963 6,117 58,148 Taxes - 356,991 - - 316,621 Due from other governments - - - - - Notes and loans receivable - - - - - Land held for resale - - - - - Total assets $ 138,729 $ 5,196,523 $ 1508,353 $ 660,897 $ 6,626,411 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 10,781 $ 201,623 $ 49,205 $ 97,941 $ 322,457 Deferred revenue 83,742 2,652,496 5,942 2,603 24,744 Due to other governments - - - - - Due to other funds - - - - 208,702 Total liabilities 94,523 2,854,119 55,147 100,544 555,903 Fund Balances (Deficit): Reserved for: Special revenue fund - - - - Debt service - - 571,063 - - Capital projects fund - - - - - Unreserved: Designated - 2,342,404 882,143 560,353 - Undesignated 44,206 - - - 6,070,508 Total fund balances (deficit) 44,206 2,342,404 1,453,206 560,353 6,070,508 Total liabilities and fund balances $ 138,729 $ 5,196,523 $ 1,508,353 $ 660,897 $ 6,626,411 94 Special Revenue Funds Landscape State Traffic Maintenance Stormwater Miscellaneous Park TDA Safety CDBG AQMD District #1 Utility Grants $ 250,000 $ 3,277,729 $ 49,511 $ 59,376 $ - $ 16,000,075 $ 3,889,712 $ - - - - - 36,938 109,611 - - 30,625 463 - - 149,496 36,343 - - - 118,467 - - 554,423 1,105,481 - 266,880 142,060 - 143,857 50,600 - - 1,106,954 - - - 141,954 - - - - $ 516,880 $ 3,450,414 $ 168,441 $ 345,187 $ 50,600 $ 16,740,932 $ 5,141,147 $ 1,106,954 $ 25,494 $ 1,297,473 $ - $ 147,825 $ 25,000 $ 1,138,192 $ 225,199 $ 475,936 266,880 2,005,715 197 141,954 50,600 63,616 15,465 1,084598 26,215 - - - - - - - 215,171 - - - 25,949 - - 418,150 533,760 3,303,188 197 289,779 101,549 1,201,808 240,664 1,978,684 - 147,226 168,244 55,408 - 15539,124 4,900,483 (16,880) - - - (50,949) - - (871,730) (16,880) 147,226 168,244 55,408 (50,949) 15539,124 4,900,483 (871,730) $ 516,880 $ 3,450,414 $ 168,441 S 345,187 $ 50,600 $ 16,740,932 $ 5,141,147 $ 1,106,954 City of Santa Clarita Combining Balance Sheet, Continued Non -Major Governmental Funds June 30, 2009 Special Revenue Funds LIABILITIES AND Sei%er Federal Aid BJA Law Supplemental Maintenance Urban Enforcement Law Grant HOME ASSETS Liabilities: Cash and investments $ - $ - $ - $ - $ 61,355 Cash and investments with fiscal agents - - - - - Receivables: 480,000 3,754 33,798 1,165,184 Accounts - - - - - Interest - - - - - Taxes - - - - - Due from other governments - 480,000 5,608 33,798 - Notes and loans receivable - - - - 1,165,184 Land held for resale - - - - - Total "sets $ - $ 480,000 $ 5,608 $ 33,798 $ 1,226,539 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ - $ - $ - Deferred revenue - 480,000 3,754 33,798 1,165,184 Due to other governments - - - - - Due to other funds 18,930 480,000 8,532 33,204 - Total liabilities 18,930 960,000 12,286 67,002 1,165,184 Fund Balances (Deficit): Reserved for: Special revenue fund - - - - - Debt service - - - - - Capital projects fund - - - - - Unreserved: Designated - - - - 61,355 Undesignated (18,930) (480,000) (6,678) (33,204) - Total fund balances (deficit) (18,930) (480,000) (6,678) (33,204) 61,355 Total liabilities and fund balances $ - S 480,000 $ 5,608 $ 33,798 $ 1,226,539 96 Special Revenue Funds Debt Service Funds Library Public Redevelopment Public Facility Education and Federal Agency Financing Fees Government Proposition C Grants Total Low/Mod Authority Total $ - $ 292,760 $ 545,370 $ - $ 37,710,402 $ 9,223 $ 457,357 $ 466,580 - - - - - 268;879 - 268,879 1,224 - - - 196,856 - - - - 2,735 5,096 - 348,462 - - - - 80,316 - - 2,532,299 - - - - - 2,183,616 3,717,915 8,131,288 - - - - - - - 1,307,138 - - - $ 1,224 $ 375,811 $ 2,734,082 $ 3,717,915 $ 50,226,445 $ 278,102 $ 457,357 $ 735,459 $ 2,190 $ 80,666 $ 1,278,720 $ 820,799 $ 6,199,501- - 1,164 1,395,937 3,453,350 12,931,739 - - - - - - 87,731 113,946 - - - 5,844 - - 2,387,535 3,802,017 - - - 8,034 81,830 2,674,657 6,749,415 23,047,203 - - - - - - - 571,063 - - - - - - - - 278,102 457,357 735,459 293,981 59,425 25,010,146 - - - (6,810) - - (3,031,500) 1,598,033 - - - (6,810) 293,981 59,425 (3,031,500) 27,179,242 278,102 457,357 735,459 $ 1,224 $ 375,811 $ 2,734,082 S 3,717,915 $ 50,226,445 $ 278,102 $ 457,357 $ 735,459 97 City of Santa Clarita Combining Balance Sheet, Continued Non -Major Governmental Funds June 30, 2009 LIABILITIES AND Capital Projects Funds FUND BALANCES Total General Redevelopment Public Accounts payable and accrued liabilities Noomajor 8,017 $ Capital Agency Financing - Governmental - 13,965 Projects Low/Mod Authority Total Funds ASSETS Due to other funds - - - - 3,802,017 Cash and investments $ 4,834,395 $ 11,937,629 $ 185 $ 16,772,209 $ 54,949,191 Cash and investments with fiscal agents - - - - 268,879 Receivables: Special revenue fund - 11,968,628 Accounts - - - - 196,856 Interest - 32,817 - 32,817 381,279 Taxes - 20,164 - 20,164 2,552,463 Due from other governments - - - - 8,131,288 Notes and loans receivable - - - - 1,307,138 Land held for resale - - - - - Total assets $ 4,834,395 $ 11,990,610 $ 185 $ 16,825,190 $ 67,787,094 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 65,007 $ 8,017 $ - $ 73,024 $ 6,272,525 Deferred revenue - 13,965 - 13,965 12,945,704 Due to other governments - - - - 113,946 Due to other funds - - - - 3,802,017 Total liabilities 65,007 21,982 - 86,989 23,134,192 Fund Balances (Deficit): Reserved for: Special revenue fund - 11,968,628 - 11,968,628 11,968,628 Debt service - - - - 571,063 Capital projects fund - - - - 735,459 Unreserved: Designated 4,769,388 - 185 4,769,573 29,779,719 Undesignated - - - - 1,598,033 Total fund balances (deficit) 4,769,388 11,968,628 185 16,738,201 44,652,902 Total liabilities and fund balances $ 4,834,395 $ 11,990,610 $ 185 $ 16,825,190 $ 67,787,094 98 99 City of Santa Clarita Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non -Major Governmental Funds For the Year Ended June 30, 2009 REVENUES: Taxes Developer fees Investment income Revenue from other agencies Fines and forfeitures Service charges Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Parks and recreation Community development Capital outlay Debt service: Bond issuance costs Principal retirement Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Bonds and certificates issued Issuance premiums (discounts) Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Special Revenue Funds - - Park - Special Bikeway Gas Tax Dedication Proposition A Assessment 456,820 2,903,511 730,847 677,813 930,508 $ - $ - $ - $ - $ 4,178,026 245,506 - 131,527 - - 8,667 85,780 74,640 45,230 269,725 94,282 7,190,347 - 2555,366 - - 184 - - 13,153 348,455 7,276,311 206,167 2,600596 4,460,904 - - - - 2,838,122 - 2,780,744 - 30,715 992,715 456,820 2,903,511 730,847 677,813 930,508 456,820 5,684,255 730,847 708,528 4,761,345 (108,365) 1,592,056 (524,680) 1,892,068 (300,441) - 217,024 - - 751,926 - (309,351) - (2,214,426) (763,628) - (92,327) - (2,214,426) (11,702) (108,365) 1,499,729 (524,680) (322,358) (312,143) 152,571 842,675 1,977,886 882,711 6,382,651 $ 44,206 $ 2,342,404 $ 1,453,206 $ 560,353 $ 6,070,508 100 Special Revenue Funds - - - - - Landscape - 197,840 State - Traffic - - Maintenance Stormwater Miscellaneous Park TDA Safety CDBG AQMD District #1 Utility Grants 200,041 - - - - - - - $ - $ - $ - $ - $ - $ 12,768,082 $ 78,092 $ - - 142,331 12,052 2,806 8,366 607,657 167,031 - 568,329 6,639,991 - 1,351,680 152,397 - - 1,652,400 - - 1,356,520 - - - - - - - - - - - 3,011,760 - - - - - - - - 129,332 568,329 6,782,322 1,368,572 1,354,486 160,763 13,375,739 3,256,883 1,781,732 - - - - - 10,194,573 - 197,840 - - - - - - - 47,653 - - - - 43,461 - 2,828,047 62,081 200,041 - - - - - - - - - - 871,430 - - - - 82,944 6,022,399 - 41,717 - 510,006 185,652 981,412 - - - 230,000 - - - - - - - 116,159 - - - - 282,985 6,022,399 - 1,259,306 43,461 10,704,579 3,013,699 1,288,986 285,344 759,923 1,368,572 95,180 117,302 2,671,160 243,184 492,746 - - - - - - 182,626 - - (617,592) (1,367,813) - (929,488) (38,149) (16,920) (15,517) - (617,592) (1,367,813) - (929,488) (38,149) 165,706 (15,517) 285,344 142,331 759 95,180 (812,186) 2,633,011 408,890 477,229 (302,224) 4,895 167,485 (39,772) 761,237 12,906,113 4,491,593 (1,348,959) $ (16,880) $ 147,226 $ 168,244 $ 55,408 $ (50,949) $ 15,539,124 $ 4,900,483 $ (871,730) 101 City of Santa Clarita Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued Non -Major Governmental Funds For the Year Ended June 30, 2009 Special Revenue Funds Sewer Federal Aid BJA Law Supplemental Maintenance Urban Enforcement Law Grant HOME REVENUES: Taxes $ - $ - $ - $ - $ Developer fees - - - - - Investment income - - - - - Revenue from other agencies - - 2,604 195,819 63,222 Fines and forfeitures - - - - - Service charges - - - - - Other revenue - - - - - Total revenues - - 2,604 195,819 63,222 EXPENDITURES: Current: General government - - - - - Public safety - - 6,298 229,847 - Public works - - - - - Parks and recreation - - - - - Community development - - - - - Capital outlay - 480,000 - - - Debt service: Bond issuance costs - - - - - Principal retirement - - - - - Interest and fiscal charges - - - - - Total expenditures - 480,000 6,298 229,847 - REVENUES OVER (UNDER) EXPENDITURES - (480,000) (3,694) (34,028) 63,222 OTHER FINANCING SOURCES (USES): Transfers in - - - - - Transfers out - - - - - Bonds and certificates issued - - - - - Issuance premiums (discounts) - - - - - Total other financing sources (uses) - - - - - NET CHANGE IN FUND BALANCE - (480,000) (3,694) (34,028) 63,222 FUND BALANCE: Beginning of year (18,930) - (2,984) 824 (1,867) End of year $ (18,930) $ (480,000) $ (6,678) $ (33,204) $ 61,355 102 20,632 146,919 3,177,840 (607,757) 29,593,539 288,552 458,030 746,582 $ (6,810) $ 293,981 $ 59,425 S (3,031500) $ 27,179,242 $ 278,102 S 457,357 $ 735,459 103 Special Revenue Funds Debt Service Funds Library Public Redevelopment Public Facility Education and Federal Agency Financing Fees Government Proposition C Grants Total Low/Mod Authority Total $ - $ - $ - $ - $ 17,024,200 $ - $ - $ - 144,731 - - - 521,764 - - - 128 11,227 91,824 - 1,527,464 2,745 1,462 4,207 - - 5,953,441 979,753 27,399,631 - - - - - - - 1,356520 - - - - - - - 3,011,760 - - - - 330,012 - 1,785,236 2,257,917 - - - 144,859 341,239 6,045,265 2,764,989 53,099,256 2,745 1,462 4,207 27,570 194,177 - - 13,452,282 - - - - - - - 283,798 - - - - - - 33,266 6,771,029 - - - - - - - 200,041 - - - - - - - 871,430 - - - - - 4,752,256 5,155,466 23,911,351 - - - - - - - - - 16 16 - - - - 230,000 - 1,372,832 1,372,832 - - - - 116,159 335,205 1,847,936 2,183,141 27,570 194,177 4,752,256 5,188,732 45,836,090 335,205 3,220,784 3,555,989 117,289 147,062 1,293,009 (2,423,743) 7,263,166 (332,460) (3,219,322) (3,551,782) - - - - 1,151576 335,205 3,218,649 3,553,854 (144,731) - (4,411,424) - (10,829,039) (13,195) - (13,195) (144,731) - (4,411,424) - (9,677,463) 322,010 3,218,649 3,540,659 (27,442) 147,062 (3,118,415) (2,423,743) (2,414,297) (10,450) (673) (11,123) 20,632 146,919 3,177,840 (607,757) 29,593,539 288,552 458,030 746,582 $ (6,810) $ 293,981 $ 59,425 S (3,031500) $ 27,179,242 $ 278,102 S 457,357 $ 735,459 103 City of Santa Clarita Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued Non -Major Governmental Funds For the Year Ended June 30, 2009 REVENUES: Taxes Developer fees Investment income Revenue from other agencies Fines and forfeitures Service charges Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Parks and recreation Community development Capital outlay Debt service: Bond issuance costs Principal retirement Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Bonds and certificates issued Issuance premiums (discounts) Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Capital Projects Funds - - - - 1,602,832 Total General Redevelopment Public Nonmajor Capital Agency Financing Governmental Projects Low/Mod Authority Total Funds $ - $ 800,529 $ - $ 800,529 $ 17,824,729 - - - 521,764 - 396,084 322 396,406 1,928,077 - - - - 27,399,631 - - - 1,356,520 - - - - 3,011,760 - - - - 2,257,917 1,196,613 322 1,196,935 54,300,398 - - - - 13,452,282 - - - - 283,798 - - - - 6,771,029 - - - 200,041 - 185,255 - 185,255 1,056,685 1,582,813 - - 1,582,813 25,494,164 - 6,593 81 6,674 6,690 - - - - 1,602,832 - - - - 2,299,300 1582,813 191,848 81 1,774,742 51,166,821 (1,582,813) 1,004,765 241 (577,807) 3,133,577 219,218 13,195 710,507 942,920 5,648,350 (50,000) (335,205) (713,651) (1,098,856) (11,941,090) 169,218 (322,010) (3,144) (155,936) (6,292,740) (1,413,595) 682,755 (2,903) (733,743) (3,159,163) 6,182,983 11,285,873 3,088 17,471,944 47,812,065 $ 4,769,388 $ 11,968,628 $ 185 $ 16,738,201 $ 44,652,902 104 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Bikeway Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Developer fees Investment income Revenue from other agencies Total revenues EXPENDITURES: Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 352,290 $ 341,302 $ 71000 7,000 144,777 177,477 504,067 525,779 Variance from Final Budget Positive Actual (Negative) 245506 $ (95,796) 067 1,667 94,282 (83,195) 497,067 348,455 (177,324) 497,067 650,314 456,820 193,494 497,067 650,314 456,820 193,494 $ 71000 $ (124,535) (108,365) $ 1070 105 152,571 $ 44,206 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Revenue from other agencies Other revenue Total revenues EXPENDITURES: Current: Public works Capital outlay Total expenditures REVENUES OVER (UNDER) OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 31500 $ 31500 4,981,113 708,842 5,012,613 71700,342 Variance from Final Budget Positive Actual (Negative) $ 85,780 $ 54,280 71190,347 (478,495) 184 184 71276,311 (424,031) 2,838,654 2,856,958 21780,744 76,214 2,103,065 71202,650 21903,511 4,299,139 (52,655) (92,397) 4,9411719 10,059,608 51684,255 4,3751353 70,894 (2,359,266) 1,592,056 250,000 217,024 217,024 (302,655) (30%421) (30%351) (52,655) (92,397) (92,327) $ 18,239 $ (2,451,663) 1,499,729 106 842,675 $ 2,342,404 3,951,322 70 70 $ 3,951,392 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Park Dedication Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Developer fees Investment income Total revenues EXPENDITURES: Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget 52,500 52,500 Variance from Final Budget Positive Actual (Negative) 131,527 $ 131,527 74,640 22,140 52,500 52,500 206,167 15307 360,000 1,328,428 730,847 597581 360,000 1,328,428 730,847 597,581 $ (307,500) $ (1,275,928) (524,680) $ 751,248 107 1,977,886 $ 1,453,206 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Proposition A Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Revenue from other agencies Total revenues EXPENDITURES: Current: Public works Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) $ 122,500 $ 122,500 $ 45,230 $ (77,270) 2,852,436 2,540,379 21555,366 14,987 2,974,936 2,662,879 2,600,596 (62,283) 31,850 81,850 30,715 51,135 989563 677,813 311,750 31,850 11071,413 708,528 362,885 2,943,086 1,591,466 1,892,068 300,602 (2,9431086) (2,214,426) (21214,426) (2,943,086) (2,214,426) (21214,426) $ - $ (622,960) (322,358) $ 300,602 108 882,711 $ 560,353 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Special Assessment Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Taxes Investment income Service charges Other revenue Total revenues EXPENDITURES: Current: General government Public works Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 3,279,344 213,780 155,000 3,648,124 $ 3,278,344 $ 213,780 20,000 3,512,124 Actual 4,178,026 269,725 13,153 4,460,904 Variance from Final Budget Positive (Negative) $ 899,682 55,945 (6,847) 948,780 2,4071328 21426,087 21838,122 (412,035) 1,022,500 11058,828 992,715 66,113 1,1171000 1,770,400 930,508 839,892 4,5461828 5,255,315 41761,345 493,970 (898,704) (11743,191) (300,441) 1,442,750 776,243 729,531 751,926 (22,395) (785,645) (738,933) (763,628) (24,695) (9,402) (91402) (11,702) (47,090) $ (908,106) $ (1,752,593) (312,143) $ 1,440,450 6,382,651 S 6,070,508 109 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Park Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Revenue from other agencies Total revenues EXPENDITURES: Current: Parks and recreation Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDIT OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) $ 192,290 $ 827,422 $ 568,329 $ (259,093) 192,290 827,422 568,329 (259,093) 192,290 190,607 200,041 (9,434) - 122,280 82,944 39,336 192,290 312,887 282,985 29,902 514,535 285,344 (229,191) (250,000) 250,000 (250,000) - 250,000 $ $ 264535 285,344 $ 20,809 110 (302,224) $ (16,880) City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TDA Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Revenue from other agencies Total revenues EXPENDITURES: Current: Capital outlay Total expenditures REVENUES OVER (UNDER) OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget 6,230,916 91542,254 6,230,916 9542,254 Actual Variance from Final Budget Positive (Negative) 142,331 $ 142,331 6,63%991 (2,902,263) 61782,322 (2,7591932) 1,667,181 8,980,213 6,022,399 2,957,814 107,181 8,980,213 6,022,399 2,957,814 4563,735 562,041 759,923 197,882 (764,033) (775,391) (617,592) 157,799 (764,033) (775,391) (617,592) 157,799 $ 3,7991702 $ (213,350) 142,331 $ 355,681 111 4,895 $ 147,226 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Fines and forfeitures Total revenues OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) $ 31,500 $ 31,500 $ 12,052 $ (19,448) 1,912,685 1,200,000 1,356,520 156,520 1,944,185 1,231500 1,368,572 137,072 (1,944,185) (1,13605) (1,367,813) (231,128) (1,944,185) (1,13605) (1,367,813) (231,128) $ - $ 94,815 759 $ (94,056) 112 167,485 $ 168,244 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual CDBG Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Revenue from other agencies Total revenues EXPENDITURES: Current: Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget 1,196,631 1,439,967 1,196,631 1,439,967 Variance from Final Budget Positive Actual (Negative) $ 2,806 $ 2,806 11351,680 (88,287) 1,354,486 (85,481) 839,145 11092,614 871,430 221,184 - 41,718 41,717 1 230,000 230,000 230,000 116,159 116,159 116,159 1,185,304 1,480,491 1,259,306 221,185 $ 11,327 $ (40524) 95,180 $ 135,704 113 (39,772) $ 55,408 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AQMD Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Revenue from other agencies Total revenues EXPENDITURES: Current: Public works Total expenditures REVENUES OVER (UNDER) EXPENDIT OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 21,000 $ 21,000 $ 322,120 236,864 343,120 257,864 Actual Variance from Final Budget Positive (Negative) 8,366 $ (12,634) 152,397 (84,467) 160,763 (97,101) 5300 53,000 43,461 9,539 53,000 53,000 43,461 9,539 290,120 204,864 117,302 (87562) (1,066,159) (964,108) (929,488) 3020 (1066,159) (964,108) (929,488) 34,620 $ (776,039) $ (759,244) (812,186) $ (52,942) 761,237 $ (50,949) 114 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Landscape Maintenance District #1 Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Taxes Investment income Total revenues EXPENDITURES: Current: General government Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 11,362,187 $ 11,494,747 385,000 385,000 11,747,187 11,879,747 Variance from Final Budget Positive Actual (Negative) $ 121768,082 $ 1,273,335 607,657 222,657 13,375,739 1,495,992 12,0261372 12,235,729 101194,573 2,041,156 720,000 11391,081 510,006 881,075 12,7461372 13,626,810 101704,579 2,922,231 (999,185) (11747,063) 21671,160 (38,149) (38,149) (38,149) (38,149) (38,149) (38,149) $ (1,037,334) $ (1,785,212) 21633,011 115 12,906,113 $ 15,539,124 4,418,223 $ 4,418,223 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Storrowater Utility Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Taxes Investment income Service charges Total revenues EXPENDITURES: Current: Public works Capital outlay Total expenditures REVENUES OVER (UNDER) OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget $ 84,100 $ 78,100 87,500 87,500 2,610,900 2,477,000 Variance from Final Budget Positive Actual (Negative) $ 78,092 $ (8) 167,031 79,531 3,011,760 534,760 2,782,500 2,642,600 31256,883 614,283 2,840,454 31341,676 27828,047 513,629 150,000 424,644 185,652 238,992 155,400 2,9901454 3,766,320 3,01309 752,621 (207,954) (1,123,720) 243,184 1,3661904 169,350 183,126 182,626 500 (13,950) (18,160) (16,920) 1,240 155,400 16066 165,706 1,740 $ (52,554) $ (958,754) 116 408,890 $ 1,367,644 4,491,593 $ 4,900,483 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Miscellaneous Grants Special Revenue Fund For the Year Ended June 30, 2009 EXPENDITURES: Current: General government Public safety Parks and recreation Capital outlay Total expenditures REVENUES OVER (UNDER) OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 257,636 222,646 197,840 24,806 Variance from 219,009 4703 171,356 - Final Budget 62,081 Original Final 2,193,956 Positive 1,212,544 Budget Budget Actual (Negative) 2,728579 1,288,986 1,439,593 REVENUES: Revenues from other agencies $ 367,330 $ 21371,614 $ 1,6521400 $ (719,214) Other revenue 28,500 756,080 129,332 (626,748) Total revenues 395,830 3,127,694 11781,732 (1,3451962) EXPENDITURES: Current: General government Public safety Parks and recreation Capital outlay Total expenditures REVENUES OVER (UNDER) OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 257,636 222,646 197,840 24,806 162,656 219,009 4703 171,356 - 92,968 62,081 3007 694,469 2,193,956 981,412 1,212,544 1,1141761 2,728579 1,288,986 1,439,593 (718,931) 399,115 $ (718,931) $ 399,115 117 492,746 93,631 (15,517) (15,517) (15,517) (15,517) 477,229 $ 78,114 (1,348,959) 5 (871,730) City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Urban Aid Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Revenues from other agencies Total revenues EXPENDITURES: Current: Capital Outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget 2,966,462 2,966,462 $ $ (2,966,462) 118 Variance from Final Budget Positive Actual (Negative) 480,000 2,486,462 480,000 2,4861462 (480,000) $ 2,486,462 $ (480,000) City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual BJA Law Enforcement Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Revenues from other agencies Total revenues EXPENDITURES: Current: Public safety Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) $ 91700 $ 61,137 $ 2,604 $ (58,533) 91700 61,137 2,604 (58,533) 61,137 6,298 5039 61,137 6,298 5039 $ 9,700 $ - (304) $ (3,694) 119 (2,984) $ (6,678) City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Supplemental Law Grant Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Revenues from other agencies Total revenues EXPENDITURES: Current: Public safety Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) 229,617 195,819 (33,798) 229,617 195,819 (33,798) 336,563 229,847 106,716 336563 229,847 106,716 $ $ (106,946) (34,028) $ 72,918 120 824 $ (33,204) City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual HOME Special Revenue Fund For the Year Ended June 30, 2009 Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES: Investment income $ $ $ - $ - Revenues from other agencies - - 63,222 63,222 Total revenues - - 63,222 63,222 EXPENDITURES: Current: Community development - - - - Total expenditures - - - - NET CHANGE IN FUND BALANCE $ - $ - 63,222 $ 63,222 FUND BALANCE: Beginning of year (1,567) End of year 5 61,355 121 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Library Facilities Fees Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Developer fees Investment income Total revenues EXPENDITURES: Current: General government Total expenditures REVENUES OVER (UNDER) EXPENDIT OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget 21625 2,625 21625 21625 Variance from Final Budget Positive Actual (Negative) $ 144,731 $ 144,731 128 (21497) 144,859 142,234 27,571 27,570 27,571 21625 (24,946) 27,570 117,289 142,235 (135,671) (144,731) (9,060) (135,671) (144,731) (9,060) $ 2,625 $ (16017) (27,442) $ 133,175 122 20,632 5 (6,810) City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Education and Government Special Revenue Fund For the Year Ended June 30, 2009 REVENUES: Investment income Other revenue Total revenues EXPENDITURES: General government Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget 225,000 225,000 Variance from Final Budget Positive Actual (Negative) 11,227 $ 11,227 330,012 105,012 225,000 225,000 341,239 116,239 96,000 276,000 194,177 81,823 96,000 276,000 194,177 81,823 $ 129,000 $ (51,000) 147,062 $ 198,062 123 146,919 $ 293,981 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Proposition C Special Revenue Fund For the Year Ended June 30, 2009 EXPENDITURES: Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 4526,679 9,97606 4,752,256 5,22040 Variance from 4526,679 9,97606 4,752256 Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES: Investment income $ 87,500 $ 87,500 $ 91,824 $ 4,324 Revenue from other agencies 4,633,225 10,603,313 51953,441 (4,649,872) Total revenues 4,720,725 10,690,813 6,045,265 (4,645,548) EXPENDITURES: Capital outlay Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 4526,679 9,97606 4,752,256 5,22040 4526,679 9,97606 4,752256 5,224,640 194,046 713,917 11293,009 (2,791,001) (4,411,424) (47411,424) (2,7911001) (4,411,424) (4,411,424) $ (2,596,955) $ (3,697,507) (31118,415) $ 124 3,177,840 $ 59,425 579,092 579,092 City of Santa Clarita Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Grants Special Revenue Fund For the Year Ended June 30, 2009 EXPENDITURES: Current: Public works Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 20,397 295,000 37,000 17,054,399 57,397 17,349,399 $ 274,803 $ 1,009,930 125 33,266 5,155,466 261,734 11,898,933 57188,732 12,160,667 Variance from Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES: Revenues from other agencies $ 332,200 $ 16,108,104 $ 979,753 $ (15,128,351) Other revenue - 2,251,225 1,785,236 (465,989) Total revenues 332,200 18,359,329 21764,989 (15,5941340) EXPENDITURES: Current: Public works Capital outlay Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 20,397 295,000 37,000 17,054,399 57,397 17,349,399 $ 274,803 $ 1,009,930 125 33,266 5,155,466 261,734 11,898,933 57188,732 12,160,667 (21423,743) $ (3,433,673) (607,757) S (3,031,500) 126 INTERNAL SERVICE FUNDS The Internal Service Funds are used to account for goods or services provided by a central service department to other City departments. Self -Insurance - To account for the 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. Public Facilities Replacement - To account for the financing of the replacement of the City's public facilities. 127 City of Santa Clarita Combining Statement of Net Assets Internal Service Funds June 30, 2009 ASSETS Current assets: Cash and investments Receivables: Accounts Interest Advances to other fund Total current assets Noncurrent assets: Capital assets: Equipment, net of accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Total current liabilities Noncurrent liabilities: Claims payable Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets Unrestricted Total net assets Public Computer Vehicle Facilities Self -Insurance Replacement Replacement Replacement Total $ 3,639,257 $ 1,474,500 $ 3,271,866 $ 9,332,390 $ 17,718,013 2,660 - - - 2,660 35,067 13,778 30,571 60,101 139,517 865,790 - - - 865,790 4,542,774 1,488,278 3,302,437 9,392,491 18,725,980 30,717 426,748 436,659 - 894,124 - 894,124 4,462,833 1,370,003 30,717 426,748 436,659 - 894,124 4,573,491 1,915,026 3,739,096 9,392,491 19,620,104 8,721,041 $ 18,750,438 29,941 118,275 - 671,450 819,666 29,941 118,275 - 671,450 819,666 50,000 - - - 50,000 50,000 - - - 50,000 79,941 118,275 - 671,450 869,666 30,717 426,748 436,659 - 894,124 4,462,833 1,370,003 3,302,437 8,721,041 17,856,314 $ 4,493,550 $ 1,796,751 $ 3,739,096 $ 8,721,041 $ 18,750,438 128 City of Santa Clarita Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the Year Ended June 30, 2009 129 Public Computer Vehicle Facilities Self -Insurance Replacement Replacement Replacement Total OPERATING REVENUES: Charges for services $ 1,695,883 $ 398,100 $ 326,400 $ - $ 2,420,383 Other revenues 850 - 12,408 - 13,258 Total operating revenues 1,696,733 398,100 338,808 - 2,433,641 OPERATING EXPENSES: Services and supplies 2,197,421 205,171 13,913 9,465,395 11,881,900 Depreciation 2,792 144,894 146,669 - 294,355 Total operating expenses 2,200,213 350,065 160,582 9,465,395 12,176,255 OPERATING INCOME (LOSS) (503,480) 48,035 178,226 (9,465,395) (9,742,614) NONOPERATING REVENUES (EXPENSES): Investment income 185,707 57,914 135,799 403,799 783,219 Total nonoperating revenues (expenses) 185,707 57,914 135,799 403,799 783,219 INCOME (LOSS) BEFORE TRANSFERS (317,773) 105,949 314,025 (9,061,596) (8,959,395) TRANSFERS: Transfers in 125,000 - - 3,000,000 3,125,000 Total other financing sources (uses) 125,000 - - 3,000,000 3,125,000 CHANGE IN NET ASSETS (192,773) 105,949 314,025 (6,061,596) (5,834,395) NET ASSETS: Beginning of year 4,686,323 1,690,802 3,425,071 14,782,637 24,584,833 End of year $ 4,493,550 $ 1,796,751 S 3,739,096 $ 8,721,041 $ 18,750,438 129 City of Santa Clarita Combining Statement of Cash Flows All Internal Service Funds For the Year Ended June 30, 2009 Public Computer Vehicle Facilities Self -Insurance Replacement Replacement Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund service provided $ 1,698,081 $ 398,100 $ 329,400 $ - $ 2,425,581 Other operating receipts 850 - 12,408 - 13,258 Payments to suppliers (2,212,175) (271,038) (69,672) (9,055,684) (11,608,569) Net cash provided by (used for) operating activities (513,244) 127,062 272,136 (9,055,684) (9,169,730) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash received from other funds 2,335,410 - - 3,000,000 5,335,410 Cash paid to other funds - - - - - Net cash provided by (used for) noncapital financing activities 2,335,410 - - 3,000,000 5,335,410 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (33,509) (98,753) (154,325) - (286,587) Net cash provided (used for) by capital and related financing activities (33509) (98,753) (154,325) - (286,587) CASH FLOWS FROM INVESTING ACTIVITIES: Investment income 164,824 56,835 132,875 452,915 807,449 Net cash provided (used for) by investing activities 164,824 56,835 132,875 452,915 807,449 Net increase (decrease) in cash and cash equivalents 1,953,481 85,144 250,686 (5,602,769) (3,313,458) CASH AND CASH EQUIVALENTS Beginning of year 1,685,776 1,389,356 3,021,180 14,935,159 21,031,471 End of year $ 3,639,257 $ 1,474,500 $ 3,271,866 $ 9,332,390 $ 17,718,013 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) $ (503,480) $ 48,035 $ 178,226 $ (9,465,395) $ (9,742,614) Adjustments to reconcile operating income to (loss) to net cash provided by (used for) operating activities: Depreciation expense 2,792 144,894 146,669 - 294,355 Change in assets and liabilities: (Increase) decrease in accounts receivable 2,198 - 3,000 - 5,198 Increase (decrease) in account payable and accrued liabilities 5,246 (65,867) (55,759) 409,711 293,331 Increase (decrease) in claims payable (20,000) - - - (20,000) Total adjustments (9,764) 79,027 93,910 409,711 572,884 Net cash provided (used) by operating activities $ (513,244) $ 127,062 $ 272,136 $ (9,055,684) $ (9,169,730) 130 AGENCYFUNDS The Agency Funds are used to account for assets held by the City as an agency for individuals. Assessment District No. 92-2 - To account for monies held to account for debt service requirements of Assessment District No. 92-2. Assessment District No. 99-1- To account for monies held to account for debt service requirements of Assessment District No. 99-1. Community Facilities District No. 2002-1 -To account for monies held to account for debt service requirements of Community Facilities District No. 2002-1. 131 City of Santa Clarita Combining Statement of Fiduciary Assets and Liabilities Fiduciary Funds June 30, 2009 132 Community Assessment Assessment Facilities District District District No, 92-2 No. 99-1 No. 2002-1 Total ASSETS Cash and investments $ 105,211 $ 84,519 $ 38,017 $ 227,747 Cash and investments with fiscal agent 63,908 60,228 1,675,428 1,799,564 Receivables: Accounts 1,643 861 - 2,504 Interest 983 790 356 2,129 Total assets $ 171,745 $ 146,398 5 1,713,801 $ 2,031,944 LIABILITIES Accounts payable and accrued liabilities $ 960 $ 934 $ 151 $ 2,045 Due to other funds 418 336 - 754 Due to bondholders 170,367 145,128 1,713,650 2,029,145 Total liabilities $ 171,745 $ 146,398 5 1,713,801 $ 2,031,944 132 City of Santa Clarita Schedule of Changes in Fiduciary Assets and Liabilities All Agency Funds For the Year Ended June 30, 2009 ASSESSMENT DISTRICT NO. 92-2 ASSETS Cash and investments Cash and investments with fiscal agent Receivables: Accounts Interest Total assets LIABILITIES Accounts payable and accrued liabilities Due to other funds Due to bondholders Total liabilities ASSESSMENT DISTRICT NO. 99-1 ASSETS Cash and investments Cash and investments with fiscal agent Receivables: Accounts Interest Total assets LIABILITIES Accounts payable and accrued liabilities Due to other funds Due to bondholders Total liabilities Balance at July 1, 2008 Additions $ 122,303 $ 64,250 1,187 1,111 $ 188,851 $ Balance at Deletions June 30, 2009 $ 17,092 $ 105,211 342 63,908 456 - 1,643 - 128 983 456 $ 17,562 $ 171,745 $ 1,306 $ - $ 346 $ 960 30,000 - 29,582 418 157,545 12,822 - 170,367 $ 188,851 $ 12,822 $ 29,928 $ 171,745 $ 22,911 $ 61,608 $ 60,837 - 1,951 - 217 573 $ 85,916 $ 62,181 $ $ 922 $ 12 $ - 336 84,994 60,134 $ 85,916 $ 60,482 $ 133 $ 84,519 609 60,228 1,090 861 - 790 1,699 $ 146,398 $ 934 336 145,128 5 146,398 City of Santa Clarita Schedule of Changes in Fiduciary Assets and Liabilities All Agency Funds For the Year Ended June 30, 2009 COMMUNITY FACILITIES DISTRICT NO. 2002-1 ASSETS Cash and investments Cash and investments with fiscal agent Receivables: Interest Total assets LIABILITIES Accounts payable and accrued liabilities Due to other funds Due to bondholders Total liabilities TOTAL -ALL AGENCY FUNDS ASSETS Cash and investments Cash and investments with fiscal agent Receivables: Accounts Interest Total assets LIABILITIES Accounts payable and accrued liabilities Due to other funds Due to bondholders Total liabilities Balance at July 1, 2008 Additions Deletions Balance at June 30, 2009 $ 39,826 $ - $ 1,809 $ 38,017 1,685,953 - 10,525 1,675,428 364 8 356 $ 1,726,143 $ - $ 12,342 $ 1,713,801 $ 147 $ 4 $ - $ 151 14,350 - 14,350 - 1,711,646 2,004 - 1,713,650 $ 1,726,143 $ 2,008 $ 14,350 $ 1,713,801 $ 185,040 $ 61,608 $ 18,901 $ 227,747 1,811,040 - 11,476 1,799,564 3,138 456 1,090 2,504 1,692 573 136 2,129 $ 2,000,910 $ 62,637 $ 31,603 $ 2,031,944 $ 2,375 $ 16 $ 44,350 336 1,954,185 74,960 $ 2,000,910 $ 75,312 $ 134 346 $ 2,045 43,932 754 - 2,029,145 44,278 $ 2,031,944 STATISTICAL SECTION (Unaudited) This part of the City of Santa Clarita's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health. CONTENTS Financial Trends These tables contain trend information that may assist the reader in 137-143 the City's current financial performance by placing it in historical perspective. Revenue Capacity These tables contain information that may help in assessing the 144-155 viability of the City's most significant revenue sources, the property and sales taxes. Debt Capacity These tables present information that may assist the reader in 156-162 analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information These tables offer demographic and economic indicators to help the 163-164 reader understand the environment within which the City's financial activities take place. Operating Information These tables contain service and infrastructure indicators that can 165-167 inform one's understanding how the information in the City's financial statements relate to the services the City provides and the activities it performs. 135 136 City of Santa Clarita Net Assets by Component (1) Last Six Fiscal Years Ended June 30, 2009 (accrual basis of accounting) Business -type Activities FISCAL YEAR 05-06 Investment in capital assets, 08-09 07-08 06-07 As Restated 04-05 03-04 Governmental Activities net of related debt $ 66,963,851 $ 63,526,242 $ 62,246,621 Investment in capital assets, $ 57,378,860 $ 38,827,474 Restricted for: net of related debt $ 629,621,722 $ 672,306,820 $ 661,210,117 $ 614,300,517 $ 160,829,971 $ 110,924,177 Restricted for: Debt Service - - Capital Projects 4,769,573 45,993,804 18,134,924 32,030,928 14,530,809 14,679,895 Debt Service - 632,680 - 174,028 347 49 Specific Projects and Programs 92,644,739 61,018,399 34,441,539 30,547,345 27,009,644 25,683,042 Total Restricted 97,414,312 107,644,883 52,576,463 62,752,301 41,540,800 40,362,986 Unrestricted 98,512,704 66,249,901 87,737,817 71,001,423 53,357,322 49,662,321 Total governmental activities net assets $ 825,548,738 $ 846,201,604 $ 801,524,397 $ 748,054,241 $ 255,728,093 $ 200,949,484 Business -type Activities Investment in capital assets, net of related debt $ 66,963,851 $ 63,526,242 $ 62,246,621 $ 63,741,429 $ 57,378,860 $ 38,827,474 Restricted for: Debt Service - - - - - - Unrestricted 3,118,092 2,957,611 1,553,088 (406,224) (890,648) (1,959,972) Total business -type activities net assets $ 70,081,943 $ 66,483,853 $ 63,799,709 $ 63,335,205 $ 56,488,212 $ 36,867,502 Primary Government Investment in capital assets, net of related debt 696,585,573 735,833,062 723,456,738 678,041,946 218,208,831 149,751,651 Restricted 97,414,312 107,644,883 52,576,463 62,752,301 41,540,800 40,362,986 Unrestricted 101,630,796 69,207,512 89,290,905 70,595,199 52,466,674 47,702,349 Total Primary Government Net Assets $ 895,630,681 $ 912,685,457 $ 865,324,106 $ 811,389,446 $ 312,216,305 $ 237,816,986 Note: (1) Accounting standards require that net assets be reported in three components in the financial statements: invested in capital assets, net of related debt, restricted, and unrestricted. Net assets are considered restricted only when (1) an external party, such as the State of California or the federal government, places a restriction on how the revenues may be used, or (2) enabling legislations is enacted by the City. (2) City of Santa Clarita implemented GASB 34 reporting module for the fiscal year ended June 30, 2003. Fiscal Year 2005-06 balance was restated as a result of the City's valuation of the estimated historical cost of infrastructure placed in service prior to July 1, 2002. See Notes to Basic Financial Statements #16. Source: City of Santa Clarita, Administrative Services Department - Finance Division 137 City of Santa Clarita Changes in Net Assets Last Six Fiscal Years Ended June 30, 2009 (1) (accrual basis of accounting) Program Revenues FISCAL YEAR Governmental Activities 08-09 07-08 06-07 05-06 04-05 03-04 Expenses 12,616,641 3,351,941 15,834,845 8,937,213 Capital grants and contributions 0 617,421 750,200 - - - Total business -type activities program revenues: Governmental Activities $ 621,624 $ 2,737,355 $ 302,075 $ 186,171 $ 377,202 $ 325,190 General government $ 30,094,380 $ 27,488,731 $ 26,029,070 $ 24,225,414 $ 9,930,958 $ 10,645,351 Public safety 17,489,870 16,482,917 14,398,408 13,821,626 12,437,170 12,113,853 Public works 48,514,645 30,549,888 19,273,980 6,417,841 11,754,949 8,859,452 Parks and recreation 32,747,618 21,817,251 20,573,077 20,988,533 17,637,475 15,370,145 Community development 9,761,681 9,257,881 8,985,449 16,939,976 22,371,678 20,482,573 Unallocated infrastructure depreciation 14,405,047 13,128,617 12,920,310 1,268,939 701,261 243,369 Interest on long-term debt 5,725,201 3,127,998 2,087,949 1,669,701 1,560,223 1,608,577 Total governmental activites expenses: 158,738,442 121,853,283 104,268,243 85,332,030 76,393,714 69,323,320 Business -type Activities Transit 22,299,379 21,506,317 18,315,106 16,508,457 15,239,173 14,557,850 Total business -type activities expenses: 22,299,379 21,506,317 18,315,106 16,508,457 15,239,173 14,557,850 Total primary government expenses: $ 181,037,821 $ 143,359,600 $ 122,583,349 $ 101,840,487 $ 91,632,887 $ 83,881,170 Program Revenues Charges for services: Governmental Activities Transit 3,299,263 3,216,239 5,827,778 4,950,584 5,224,575 4,581,799 Operating grants and contributions 13,653,177 Charges for services: 12,616,641 3,351,941 15,834,845 8,937,213 Capital grants and contributions 0 617,421 750,200 - - - Total business -type activities program revenues: General government $ 621,624 $ 2,737,355 $ 302,075 $ 186,171 $ 377,202 $ 325,190 Public safety 1,898,022 2,291,100 2,131,060 2,032,652 1,921,796 1,143,772 Public works 260,524 355,817 3,575,546 2,512,093 2,423,865 2,697,751 Parks and recreation 3,849,699 3,875,539 3,895,422 3,794,662 3,874,109 3,133,880 Community development 35,138,334 26,341,684 20,182,722 19,068,982 20,127,873 20,740,859 Operating grants and contributions 9,931,109 22,600,793 26,641,145 23,465,852 21,301,215 18,503,221 Capital grants and contributions 38,785,576 39,003,536 24,770,306 60,971,404 34,503,830 12,239,868 Total governmental activities program revenues: 90,484,888 97,205,824 81,498,276 112,031,816 84,529,890 58,784,541 Business -type Activities Charges for services: Transit 3,299,263 3,216,239 5,827,778 4,950,584 5,224,575 4,581,799 Operating grants and contributions 13,653,177 11,876,720 12,616,641 3,351,941 15,834,845 8,937,213 Capital grants and contributions 0 617,421 750,200 - - - Total business -type activities program revenues: 16,952,440 15,710,380 19,194,619 8,302,525 21,059,420 13,519,012 Total primary government revenues: $ 107,437,328 $ 112,916,204 $ 100,692,895 $ 120,334,341 $ 105,589,310 $ 72,303,553 Note: (1) City of Santa Clarita implemented GASB 34 reporting module for the fiscal year ended June 30, 2003. Source: City of Santa Clarita, Administrative Services Department - Finance Division 138 City of Santa Clarita Changes in Net Assets Last Six Fiscal Years Ended June 30, 2009 (1) (accrual basis of accounting) Net Revenues (expenses): Governmental activities Business -type activities Total net revenues (expenses): General Revenue and Other Changes in Net Assets Governmental activities Taxes: Sales taxes Property taxes, levied for general purposes Franchise taxes Real property transfer taxes Transient occupancy taxes Unrestricted revenue in lieu of motor vehicle taxes Unrestricted revenue in lieu of sales taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous Transfers Total governmental activities Business -type activities Grants and contributions not restricted to specific programs Unrestricted investment earnings Transfers Total business -type activities: Total primary government: Change in Net Assets Governmental activities Business -type activities Total primary government: FISCAL YEAR 08-09 07-08 06-07 05-06 14-1 03-04 $ (68,253,554) $ (24,647,459) $ (22,769,967) $ 26,699,786 $ 8,136,176 $ (10,538,779) (5,346,939) (5,795,937) 879,513 (8,205,932) 5,820,247 (1,038,838) $ (73,600,493) $ (30,443,396) $ (21,890,454) $ 18,493,854 $ 13,956,423 $ (11,577,617) (8,006,128) (8,431,120) 441,376 (12,054,795) (13,702,591) (9,737,217) $ 27,751,506 $ 29,076,388 $ 23,790,825 26,820,068 24,482,930 27,891,202 6,704,074 6,028,903 6,248,912 4,816,638 836,824 1,073,774 2,260,708 2,433,651 1,804,923 3,083,353 8,490,865 8,156,017 $ 22,204,192 $ 22,674,470 $ 27,329,574 23,106,806 9,023,363 9,452,945 5,560,153 5,314,454 5,131,964 1,544,534 1,611,216 11327,924 1,824,394 1,632,137 1,458,388 603,990 10,224,572 10,216,165 6,965,521 7,328,638 - 1,015,413 1,252,281 1,862,901 223,241 872,475 1,279,029 6,020,940 4,566,884 4,970,193 1,891,292 1,663,699 655,106 3,132,450 - - - - - (8,006,128) (8,431,120) 441,376 (12,054,795) (13,702,591) (9,737,217) 73,599,022 68,737,606 76,240,123 51,869,328 46,642,433 47,113,878 - - - 883,615 93,334 - 938,901 48,961 26,367 1,050 4,538 17,800 8,006,128 8,431,120 (441,376) 12,054,795 13,702,591 9,737,217 8,945,029 8,480,081 (415,009) 12,939,460 13,800,463 9,755,017 $ 82,544,051 $ 77,217,687 $ 75,825,114 $ 64,808,788 $ 60,442,896 $ 56,868,895 $ 5,345,468 $ 44,090,147 $ 53,470,156 $ 78,569,114 $ 54,778,609 $ 36575,099 3,598,090 2,684,144 464,504 4,733,528 19,620,710 8,716,179 $ 8,943,558 $ 46,774,291 $ 53,934,660 $ 83,302,642 $ 74,399,319 $ 45,291,278 Note: (1) City of Santa Clarita implemented GASB 34 reporting module for the fiscal year ended June 30, 2003, Source: City of Santa Clarita, Administrative Services Department - Finance Division 139 City of Santa Clarita Fund Balances of Governmental Funds Last Ten Fiscal Years Ended June 30, 2009 (modified accrual basis of accounting) All Other Governmental Funds Reserved $ 70,417,494 $ FISCAL YEAR 48,303,588 $ 80,399,389 Unreserved: 05-06 Special revenue fund 08-09 07-08 06-07 As Restated General Fund (17,004,471) (15,873,835) (10,461,382) (4,743,697) Reserved $ 32,617,139 $ 34,920,547 $ 34,699,034 $ 20,786,040 Unreserved 41,282,058 31,153,879 28,500,824 18,232,779 Total general fund $ 73,899,197 $ 66,074,426 $ 63,199,858 $ 39,018,819 All Other Governmental Funds Reserved $ 70,417,494 $ 51,972,970 $ 48,303,588 $ 80,399,389 Unreserved: Special revenue fund (6,798,095) 28,377,796 3,827,570 (7,159,062) Debt service funds (17,004,471) (15,873,835) (10,461,382) (4,743,697) Capital projects fund 34,502,270 38,050,255 4,592,332 (249,111) Total all other governmental funds $ 81,117,198 $ 102527,186 $ 36,151,718 $ 68,247,519 FUND BALANCES Fiscal Year Ended June 30, 2009 All Other Governmental Funds 52.2% ■ General Fund 47.8% Note: (1) Balance as restated, see Notes to Basic Financial Statements #16B. Source: City of Santa Clarita, Administrative Services Department - Finance Division 140 FISCAL YEAR 04-05 03-04 02-03 01-02 00-01 99-00 $ 15,638,513 $ 12,042,182 $ 14,034,615 $ 21,368,003 $ 16,330,098 $ 13,412,456 30,780,939 23,109,773 12,927,211 3,168,903 12,209,902 11,948,231 (4,402,225) (3,944,409) (4,082,126) (4,066,749) - - $ 46,419,452 $ 35,151,955 $ 26,961,826 $ 24,536,906 $ 28,540,000 $ 25,360,687 $ 30,388,825 $ 41,563,581 $ 9,203,674 $ 10,852,416 $ 8,426,033 $ 18,574,159 2,843,589 (867,508) 30,014,266 34,078,558 30,758,147 22,571,066 (4,402,225) (3,944,409) (4,082,126) (4,066,749) - - (698,632) (100,527) (196,889) 437,307 228,777 474,522 $ 28,131,557 $ 36,651,137 $ 34,938,925 $ 41,301,532 $ 39,412,957 $ 41,619,747 120 100 80 0 60 c 40 20 0 FUND BALANCES ALL OTHER GOVERNMENTAL FUNDS Last Ten Fiscal Years 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Fiscal Year 141 City of Santa Clarita Changes In Fund Balances Of Governmental Funds Last Ten Fiscal Years Ended June 30, 2009 (modified accrual basis of accounting) Revenues: Taxes Licenses and permits Developer fees Investment income Revenue from other agencies Fines and forfeitures Service charges Other revenues Total Revenues Expenditures: Current: General government Public safety Public works Parks and recreation Community development Capital outlays Debt service: Principal Interest, professional services, and fiscal charges Total Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources (Uses) Revenue bonds issued/issuance premium Proceeds of long-term debt Escrow payment, costs of bonds issuance, and others Transfers -in Transfers -out Total Other Financing Sources (Uses) Net change in fund balances Fund balances (deficit) - Beginning of Year, as restated Fund balances (deficit) - End of Year FISCAL YEAR 2009 2008 2007 2006 $ 87,267,187 $ 88,088,786 $ 70,576,755 $ 66,164,485 3,697,218 5,256,748 4,203,933 6,907,826 15,763,070 22,290,808 6,747,767 28,028,933 10,749,728 8,287,441 7,926,763 2,881,133 28,882,884 24,247,611 37,300,213 38,526,364 1,759,371 2,121,570 1,918,954 1,904,273 8,375,771 9,931,041 13,463,673 13,081,649 5,077,400 3,368,879 4,356,961 12,651,674 161572,629 163592,884 146,495,019 170,146,337 27,250,056 25,965,196 23,411,750 24,668,150 17,439,295 16,342,979 14,347,833 13,658,723 42,937,168 25,977,763 19511,097 6,802,081 20,126,412 20,156,343 18,943,146 17,376,609 7,095,386 7,583,236 9,051,652 17,164505 41,826,511 44,906,802 57,926,955 49,435,744 2,072,341 1,927,198 2,374,870 1,367,359 5,279,549 4,632,979 2,298,974 2,878,536 164,026,718 147,492,496 147,866,277 133,351,707 (2,454,089) 16,100,388 (1,371,258) 36,794,630 - - 13,894,752 - 54,235,000 - 17,700,000 - (226,682) - (17,225,304) 11,900,426 43,112,541 27,468,089 7,865,612 (23,031,554) (54,668,661) (29,881,193) (19,409,716) (11,131,128) 42,452,198 11,481,648 (11,069,408) (13,585,217) 58,552,586 10,110,390 25,725,222 168,601,612 110,049,026 99,351,576 74,551,009 S 155,016,393 S 168,601,612 $ 109,461,966 $ 100,276,231 Debt service as percentage of non capital expenditures 5.73% 5.87% 4.95% 5.04% 142 FISCAL YEAR 2005 2004 2003 2002 2001 2000 $ 53,763,779 $ 43,940,454 $ 39,813,089 $ 35,589,227 $ 34,053,282 $ 30,320,166 5,127,705 5,303,309 3,512,857 11,264,808 2,759,637 3,341,660 11,963,054 7,570,352 7,857,087 17,016,274 16,295,503 7,916,830 3,148,731 919,858 3,788,121 4,165,144 6,303,050 3,439,177 33,089,887 36,119,851 31,157,062 30,209,371 30,133,734 25,047,788 1,803,686 1,051,371 1,041,945 1,008,466 972,443 1,019,370 13,339,462 12,580,933 18,095,424 17,089,401 15,489,302 15,219587 2,408,463 3,767,800 2,309,846 1,948,808 1,298,924 859,511 124,644,767 111,253,928 107,575,431 107,026,691 107,305,875 87,164,089 11,217,783 12,436,244 9,282,089 9,778,478 8,768,573 8,156,391 12,429,192 12,102,441 12,124,427 11,264,808 11,386,290 10,386,922 8,901,359 8,692,908 8,823,785 8,112,935 7,450,660 6,785,186 15,964,949 14,226,090 11,546,673 10,492,037 9,052,687 8,769,545 22,531,795 21,039,274 23,900,882 16,450,228 13,566,023 10,978,733 35,096,683 19,251,357 33,179,578 46,917,311 43,364,800 27,909,694 2,060,319 4,332,159 1,496,087 533,279 176,061 29,161 1,570,581 1,760,134 1,958,388 1,598,807 1,547,751 1,501,752 109,772,661 93,840,607 102,311,909 105,147,883 95,312,845 74,517,384 14,872,106 17,413,321 5,263,522 1,878,808 11,993,030 12,646,705 - 1,558,097 4,400,000 - - - 1,558,097 4,400,000 - - - 2,590,955 - - - 8,157,999 8,278,692 7,662,207 9,550,514 2,989,329 3,927,765 (20,282,188) (18,380,627) (18,421,513) (18,120,682) (11,591,270) (16,392,428) (12,124,189) (7,510,980) (7,643,112) 229,832 (8,601,941) (12,464,663) 2,747,917 9,902,341 (2,379,590) 2,108,640 3,391,089 182,042 71,803,092 61,900,751 65,838,438 64,722,707 61,331,618 61,149,576 S 74,551,009 S 71,803,092 S 63,458,848 $ 66,831,347 S 64,722,707 S 61,331,618 4.73% 8.24% 4.21% 3.66% 3.32% 3.28% Source: City of Santa Clarita, Administrative Services Department - Finance Division 143 City of Santa Clarita Assessed Valuation (1) and Actual Value of Taxable Property Last Ten Fiscal Years STATE ASSESSED LOCALLY ASSESSED 1999-00 SECURED -UTILITY 323,181 $ SECURED $ 2,241,331 Fiscal IMPROVE- PERSONAL IMPROVE- PERSONAL OTHER Year LAND MENTS PROPERTY TOTAL LAND MENTS PROPERTY EXEMPTIONS TOTAL 1999-00 $ 1,733,140 $ 323,181 $ 185,010 $ 2,241,331 $ 3,549,417,695 $ 5,661,843,960 $ 91,953,388 $ (121,319,796) $ 9,181,895,247 2000-01 2,961,227 298,757 171,028 3,431,012 3,945,586,755 6,169,813,280 91,784,122 (155,105,480) 10,052,078,677 2001-02 2,759,375 327,081 187,242 3,273,698 4,337,350,843 6,540,398,513 95,719,580 (188,756,582) 10,784,712,354 2002-03 2,743,160 314,910 180,275 3,238,345 4,742,666,578 7,042,138,889 91,308,887 (183,110,538) 11,693,003,816 2003-04 5,301,621 43,969,100 205,876 49,476,597 5,312,201,652 7,688,524,882 79,538,536 (187,628,805) 12,892,636,265 2004-05 5,420,327 11,091,534 256,894 16,768,755 6,068,433,252 8,136,867,187 73,449,031 (194,782,110) 14,083,967,360 2005-06 2,098,608 10,833,957 239,620 13,172,185 7,440,682,741 8,947,087,936 89,939,825 (211,472,197) 16,266,238,305 2006-07 2,156,981 8,312,011 197,013 10,666,005 8,556,960,792 9,766,997,767 104,509489 (253,946,364) 18,174,521,684 2007-08 1,515,305 6,727,866 8,243,171 9,899,005,161 10,912,016,138 98,107,607 (214,371,451) 20,694,757,455 ASSESSED VALUATION by CATEGORIES (Total Secured and Unsecured) Fiscal Year Ended June 30, 2009 PERSONAL PROPERTY 1.27% Im ■ L43AN2D 25,000 15,000 N C O 10,000 111 TOTAL ASSESSED VALUATION (Taxable Values) Last Ten Fiscal Years 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Fiscal Year (2) Direct Rate includes Redevelopment Agency areas. 145 LOCALLY ASSESSED TOTALS HOME - UNSECURED BEFORE TAXABLE °/a TOTAL OWNER IMPROVE- PERSONAL OTHER OTHER ASSESSED INCR DIRECT PROPERTY MENTS PROPERTY EXEMPTIONS TOTAL EXEMPTIONS VALUE (DECK.) RATE (2) TAX RELIEF $ 282,745,700 $ 319,794,318 $ - $ 602,540,018 $ 9,907,996,392 $ 9,786,676,596 0.05794% $ 199,793,885 240,385,121 369,315,436 (87,800) 609,612,757 10,820,315,726 10,665,122,446 8.98% 0.05824% 199,566,151 273,0221187 407,191,186 (639,000) 679,574,673 11,656,956,307 11,467,560,725 7.52% 0.06100% 199,815,494 281,002,279 422,950,745 (95,000) 703,858,024 12,583,305,723 12,400,100,185 8.13% 0.06192% 199,128,847 254,085,173 411,805,661 (1,135,000) 664,755,834 13,795,632,501 13,606,868,696 9.73% 0.06279% 199,643,032 242,047,848 399,549,912 (76,000) 641,521,760 14,937,115,985 14,742,257,875 8.34% 0.06432% 205,852,669 216,098,046 453,406,084 (9,513,134) 659,990,996 17,160,386,817 16,939,401,486 14.90% 0.06909% 206,658,586 255,417,833 482,574,856 (7,299,385) 730,693,104 19,177,126,742 18,915,880,793 11.67% 0.08039% 206,464,204 264,708,723 558,804,055 (32,916,267) 790,596,511 21,740,884,855 21,493,597,137 13.63% 0.08327% 220,192,568 25,000 15,000 N C O 10,000 111 TOTAL ASSESSED VALUATION (Taxable Values) Last Ten Fiscal Years 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Fiscal Year (2) Direct Rate includes Redevelopment Agency areas. 145 City of Santa Clarita Redevelopment Agency (1) Assessed Valuation (2) and Actual Value of Taxable Property Last Ten Fiscal Years STATE ASSESSED LOCALLY ASSESSED 1998-99 S SECURED (UTILITY) 51,759 S SECURED 150,335 FISCAL IMPROVE- PERSONAL IMPROVE- PERSONAL OTHER YEAR LAND MENTS PROPERTY TOTAL LAND MENTS PROPERTY EXEMPTIONS TOTAL 1998-99 S 68,944 $ 51,759 S 29,632 $ 150,335 $ 115,222,237 $ 127,657,072 $ 4,474,912 $ (4,120,954) $ 243,233,267 1999-00 47,103 35,364 20,244 102,711 119,628,829 131,911,448 3,855,740 (1,609,625) 253,786,392 2000-01 43,544 32,692 18,715 94,951 129,489,221 136,444,009 4,069,074 (1,624,719) 268,377,585 2001-02 47,672 35,789 20,489 103,950 142,657,899 145,596,895 3,810,222 (2,524,574) 289,540,442 2002-03 45,897 34,458 19,726 100,081 149,325,297 149,506,716 5,028,543 (2,575,054) 301,285,502 2003-04 52,416 39,351 22,527 114,294 161,106,889 159,691,365 3,806,986 (4,148,124) 320,457,116 2004-05 65,404 49,101 28,109 142,614 180,810,905 166,935,237 2,314,234 (5,083,826) 344,976,550 2005-06 61,007 45,801 26,219 133,027 273,260,130 176,564,344 2,435,378 (4,859,824) 447,400,028 2006-07 50,158 37,657 21,558 109,373 295,792,467 185,299,271 2,545,972 (5,085,710) 478,552,000 2007-08 335,974,647 205,086,767 2,346,546 (4,630,171) 538,777,789 2008-09 348,100,511 217,393,278 2,064,527 (3,754,719) 563,803,597 SECURED ASSESSED VALUATION (before other exemptions) Fiscal Year 2008-09 Y PERSONAL PROPERTY 0.36% LAND IMPROVEMENTS End 61.33% 38.30% (1) -The Redevelopment Agency of the City of Santa Clarita was established on November 28, 1989, pursuant to the State of California Health and Safety Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base Year was calculated in fiscal year 1996-97, which included the Homeowners Tax Relief of that year. (2) -Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code. Source: County of Los Angeles, Auditor-Controller/Tax Division 146 LOCALLY ASSESSED UNSECURED IMPROVE- PERSONAL OTHER MENTS PROPERTY EXEMPTIONS TOTAL TOTALS HOME - TOTALS TAXABLE OWNER BEFORE ASSESSED VALUE PROPERTY BASEYEAR BASEYEAR VALUE GROWTH TAX RELIEF $ 4,972,866 $ 12,239,116 $ (3,000) $ 17,208,982 $ 260,592,584 $ (266,351,517) $ (5,758,933) $ - $ 1,870,400 4,143,500 14,484,623 - 18,628,123 272,517,226 (266,351,517) 6,165,709 11,924,642 1,860,600 3,796,012 16,424,155 (10,000) 20,210,167 288,682,703 (266,351,517) 22,331,186 16,165,477 1,895,600 4,515,557 14,923,310 (15,000) 19,423,867 309,068,259 (266,351,517) 42,716,742 20,385,556 1,918,000 5,983,748 19,053,059 (30,000) 25,006,807 326,392,390 (266,351,517) 60,040,873 17,324,131 1,890,000 6,272,382 19,035,089 (33,000) 25,274,471 345,845,881 (266,351,517) 79,494,364 19,453,491 1,923,600 6,326,173 22,151,970 (33,000) 28,445,143 373,564,307 (266,351,517) 107,212,790 27,718,426 2,161,147 5,901,959 23,034,914 (91,000) 28,845,873 476,378,928 (266,351,517) 210,027,411 102,814,621 2,053,943 26,593,269 25,569,962 (16,300) 52,146,931 530,808,304 (266,351,517) 264,456,787 54,429,376 1,971,567 28,204,577 48,299529 (217,300) 76,286,806 615,064595 (266,351,517) 348,713,078 84,256,291 2,034,432 39,771,667 48,437,084 (77,000) 88,131,751 651,935,348 (266,351,517) 385,583,831 36,870,753 2,002,848 UNSECURED ASSESSED VALUATION (before other Exemption) Fiscal Year 2008-09 147 City of Santa Clarita Assessed Value- Taxable Property Last Ten Fiscal Years CATEGORY 08-09 07-08 FISCAL YEAR 06-07 05-06 04-05 Residential $ 16,491,425,500 $ 16,165,919,271 $ 13,962,2751972 $ 12,56916401999 $ 11,097,987,787 Commercial 21541,908,257 21081,576,763 11836,340,797 11588,835,810 11258,3891787 Industrial 1,420,480569 1,29300539 11148,469,489 980,395598 833,455573 Irrigated 3,5591558 3,4891768 29,374,674 281272,540 4,351,050 Dry faun - 49,088,244 48,5121253 451145,241 Recreational 119,459,165 114,868,032 901435,287 94,916,719 841727,948 Institutional 1361418,924 130,907,129 94,705,673 91,312,643 80,606,769 Government 201,629 197,676 194,922 190,000 - Miscellaneous 826,513 810,312 795,449 779,859 764,577 Vacant land 6641562,300 6641792,342 65616%955 5541551,820 4401215,418 SBE Nommitary 1,073,171 8,243,171 10,666,005 13,172,185 16,768,755 Possessory Int. 158,723,783 239,115,623 222,654,730 205,526,182 201,323,600 Unsecured 8711039,834 7901596,511 7301697,804 6591990,996 6411526,760 Unknown - 83,525,492 103,30302 36,994,610 TOTALS: $ 22,409,6791203 $ 21,493,597,137 $ 181915,885,493 $ 161939,401,486 $ 141742,257,875 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 ASSESSED VALUE - TAXABLE PROPERTY Last Ten Fiscal Years 99.00 00.01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Fiscal Year Source: HdL Coren & Cone, Los Angeles County Assessor 2008/09 Combined Tax Rolls. 148 Residential ■Commercial Olndustrial GVacant land DAR others FISCAL YEAR 03-04 02-03 01-02 00-01 99-00 $ 10221,634,945 $ 9,373,657,630 $ 8,630,320,972 $ 71948529,358 $ 7,306570,760 1,13258501 1,043,922,879 955,529,671 8791942,873 797,649,082 817,508,597 735,063,812 693,214,978 660288,367 597,514,771 3,962,743 3,933,315 5,7981245 3,871,007 5,055,001 43,542,990 2905,961 3074,195 38,04105 47,333,049 94,69074 60,212,317 46,322531 421015,479 41,371556 113,908577 102,142,853 82,619,342 96,186,317 105,63507 493,814 484,173 47073 465,377 456,265 667,091 7,591,441 2,697,123 7,823,618 707,998 280,744,871 212233528 228,265,224 2601536,412 1791422,468 49,476,597 3,2381345 3,273,698 3,431,012 2,2411331 153,302,360 109,259,714 751116,757 731906,800 771224,408 664,760,834 703,858,024 679,574,673 6091612,757 602,540,018 29,585,002 14,846,193 30,2781643 40,471,414 15,974,282 $ 1306,86806 $ 12,400,1001185 $ 111467560,725 $ 1005,122446 $ 9,786,676596 Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitation just mentioned. 149 City of Santa Clarita Assessed Value- Use Category Summary Fiscal Year 2008-09 NET ASSESSED TAXABLE CATEGORY PARCELS VALUE PERCENT EXEMPTIONS VALUE PERCENT Residential 48,674 $ 16,511,335,521 72.91% $ 191910,021 $ 16,491,4251500 73.591% Commercial 860 2,549,916,541 11.26% 81008,284 21541,908,257 11.343% Industrial 672 1,421,577,263 6.28% 1,096,694 1,420,4801569 6.339% Irrigated 6 31559,558 0.02% - 3,5591558 0.016% Recreational 35 122,209,018 0.54% 2,7491853 1191459,165 0.533% Institutional 89 306,328,345 1.35% 169,909,421 136,418,924 0.609% Government 5 202,795 0.001% 1,166 201,629 0.001% Miscellaneous 10 826,513 0.004% 826,513 0.004% Vacant land 3,559 665,237,238 2.94% 674,938 6641562,300 2.966% SBE Nommitary (108) 1,0731171 0.00% - 11073,171 0.005% Possessory Int. (2,124) 159,547,778 0.70% 823,995 158,723,783 0.708% Unsecured (7,227) 904,991,640 4.00% 33,951,806 871,039,834 3.887% Unknown TOTALS: 53,910 $ 22,646,805,381 100.00% $ 2371126,178 $ 221409,679,203 100.000% ASSESSED VALUE by USE NET TAXABLE VALUE by USE CATEGORY CATEGORY Fiscal Year 2008-09 Fiscal Year 2008-09 13 B Industrial Industrial 6.34% 618 G Commercial ■ All Others 0 Commerci o 11.34% 8.73 /° al ■ All Others 11.26,, 9.56 Residential 72.91% Source: HdL Coren & Cone, Los Angeles County Assessor 2008/09 Combined Tax Rolls. 150 Residential 73.59% City of Santa Clarita Direct and Overlapping Property Tax Rates (rate per $100 of assessed value) Last Ten Fiscal Years Fiscal Year GENERAL LOS ANGELES COUNTY CASTAIC LAKE WATER AGENCY SCHOOL DISTRICTS COUNTY SANITATION DISTRICTS COUNTY FLOOD CONTROL TOTAL 1999-00 1.000000 0.001314 0.060614 0.026663 0.001015 0.001519 1.091125 2000-01 1.000000 0.001314 0.060614 0.000298 0.000498 0.001552 1.064276 2001-02 1.000000 0.001128 0.123017 0.041235 0.000561 0.001073 1.167014 2002-03 1.000000 0.001033 0.106227 0.069731 0.000487 0.000881 1.178359 2003-04 1.000000 0.000992 0.066000 0.079461 0.000328 0.000462 1.147243 2004-05 1.000000 0.000923 0.056169 0.064493 0.000321 0.000245 1.122151 2005-06 1.000000 0.000795 0.049327 0.064422 0.000000 0.000049 1.114593 2006-07 1.000000 0.000660 0.040000 0.060360 0.000000 0.000050 1.101070 2007-08 1.000000 0.000000 0.040000 0.074050 0.000000 0.000000 1.114050 2008-09 1.000000 0.000000 0.040000 0.077110 0.000000 0.000000 1.117110 iR'IIDDbL= 1.000000 0.800000 0.600000 0.400000 0.200000 0.000000 DIRECT and OVERLAPPING PROPERTY TAX RATES Fiscal Year 2008-09 LA COUNTY FLOOD CONTROL Source: HdL Coren & Cone, Los Angeles County Assessor 2008-09 Tax Rate Table 151 City of Santa Clarita Direct and Overlapping Property Tax Rates (rate per $100 of assessed value) One Year Detail of Rates producing Revenue for City and Associated Redevelopment Agencies City General Fund Direct Rates RDA Incremental Rate Total Direct Rate City Share Prop. 13 Notes: General fund tax rates are of 1% plus applicable representative and based upon the direct Roll Year per Prop. 13 Debt Rates Total City Rates voter approved debt and overlapping rates for the largest 2008-09 0.079870 0.000000 0.079870 1.040009/o 0.08313% Agency 2008-09 City of Santa Clarita Tax District 1 (249.01) 0.05735 Notes: General fund tax rates are Castaic Lake Water Agency (302.01) 0.05779 representative and based upon the direct Children's Institutional Tuition Fund (400.21) 0.00283 and overlapping rates for the largest Consolidated Fire Protection District of LA Co. (007.30) 0.16341 General Fund tax rates area (TRA) by net County School Service Fund Newhall (581.06) 0.00801 taxable value. Total Direct Rate is the County School Service Hart William S. Hart (757.06) 0.00034 weighted average of all individual direct County School Services (400.15) 0.00143 rates applied by the government preparing Development Center Handicapped Minor Newhall (581.07) 0.00088 the statistical section information. Educational Augmentation Fund Impound (400.01) 0.13377 The percentages presented in the columns Educational Revenue Augmentation Fund(ERAF) (400.00) 0.08255 above do not sum across rows. RDA rate Greater LA Co. Vector Control (061.80) 0.00032 is based on the largest RDA tax rate area LA County Library (003.01) 0.02364 (TRA) and includes only rate(s) from LA County Fire - Ffw (007.31) 0.00323 indebtedness adopted prior to 1989 per LA County Flood Control Improvement District (030.10) 0.00176 California State statute. RDA direct and LA County Flood Control Maintenance (030.70) 0.00996 overlapping rates are applied only to the LA County General (001.05) 0.14051 incremental property values. In 1978, LA County Accum Cap Outlay (001.20) 0.00009 California voters passed Proposition 13 Newhall Scholl District (581.01) 0.08349 which set the property tax at a 1.00% fixed Santa Clarita Community College (814.04) 0.03744 amount. This 1.00% is shared by all the Santa Clarita Street Light Maintenance #2 (249.32) 0.02253 taxing agencies for which the subject Santa Clarita Valley Sanitation Dist. La Co. 0.02503 property resides within. In addition to Valencia Areawide Landscape T1A S.C. 0.01924 1.00% fixed amount, property owners are William S. Hart Elementary School Fund (757,07) 0.04289 charged taxes as a percentage of assessed William S. Hart Union High (757.02) 0.08151 property values for the payment of any Total Prop. 13 Rate: 1.00000 voter approved bonds. Castaic Lake Water Agency (302.01) William S. Hart Un.Hsd Debt Services (757.51) Newhall Elementary School District Debt Services 1999 Ser. B (581.53) Newhall Elementary School District Debt Services 1999 Ser. A (581.52) Santa Clarita Community College Debt Services 2001 Ser. 2005 (814.54) Santa Clarita Community College Debt Services 2006 Ser. 2007 (814.55) Santa Clarita Community College Debt Services 2005 Refunding Bonds (814.53) Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52) Santa Clarita Community College Debt Services 2001 Ser. 2002 (814.51) William S. Hart Unified Debt Services (757.52) Total Tax Rate Source: HdL Coren & Cone, Los Angeles County Assessor 2008/09 Tax Rate Table 152 0.04000 0.01035 0.01634 0.01329 0.00619 0.01069 0.00396 0.00247 0.00046 0.01336 0.11711 City of Santa Clarita Principal Property Taxpayers Current Fiscal Year and Two Fiscal Years Ago Valencia Town Center EQR Valencia LLC Casden Santa Clarita LLC Sam's Real Estate Business Trust/ WalMart Prado Town Center West LLC VTC Business Center C -Native Exchange LLC Time Warner Rreef America Reit II Corporation DD EQR-Wellfan 2008 Gateway Village Rreef America Reit II Corporation Newhall Land and Farming Company Princess Cruises Inc. ERP Operating Prism River Oaks Limited Partnership Total All Others Total Assessed Valuation 31 FISCAL YEAR 2008-09 1.30 % FISCAL YEAR 2007-08 $ 277,077,500 FISCAL YEAR 2006-07 30 $ 227,588,130 PERCENT of 218 93,110,745 PERCENT of 218 91,285,050 PERCENT of Number TOTAL TOTAL CITY Number TOTAL TOTAL CITY Number TOTAL TOTAL CITY of ASSESSED ASSESSED of ASSESSED ASSESSED of ASSESSED ASSESSED OWNER/TAXPAYER Parcels VALUE VALUE Parcels VALUE VALUE Parcels VALUE VALUE Valencia Town Center EQR Valencia LLC Casden Santa Clarita LLC Sam's Real Estate Business Trust/ WalMart Prado Town Center West LLC VTC Business Center C -Native Exchange LLC Time Warner Rreef America Reit II Corporation DD EQR-Wellfan 2008 Gateway Village Rreef America Reit II Corporation Newhall Land and Farming Company Princess Cruises Inc. ERP Operating Prism River Oaks Limited Partnership Total All Others Total Assessed Valuation 31 $ 283,259,367 1.30 % 30 $ 277,077,500 1.63 % 30 $ 227,588,130 1.34 % 218 93,110,745 0.43 218 91,285,050 0.54 217 54,881,137 0.32 25 79,590,546 0.37 25 78,029,956 0.46 25 74,999,960 0.44 9 75,424,767 0.35 9 74,050,394 0.44 - - - 264 71,125,630 0.33 267 72,754,504 0.43 8 48,696,944 0.29 10 157,307,514 0.72 - - 12 78,960,993 0.36 - - 2 74,150,497 0.34 - - 3 70,617,530 0.32 - - 1 67,743,300 0.31 - - - - - 2 72,650,100 0.43 - - - 296 72,554,608 0.43 142 124,754,967 0.74 - - - 5 66,006,818 0.39 7 60,186,928 0.36 - - - 5 65,098,719 0.38 - - - - - - 7 53,641,335 0.32 - - - 1,051,290,889 4.84 % 923,148,984 5.45 % 591,108,666 3.49 % 20,689,593,966 95.16 16,357,948,724 94.66 16,357,948,724 96.51 521,740,884,855 100.00 0/1 517,281,097,708 100.10 % 516,949,057,390 100.00 11� NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Prior yews' information are not available at this time. Source: HdL Coren & Cone, LA County Assessor 2008/09 Combined Tax Rolls 153 154 City of Santa Clarita Property Tax Levies, Tax Collections, and Delinquency Last Ten Fiscal Years FISCAL TAXES DELINQUENT PERCENT YEAR LEVIED COLLECTIONS AMOUNT DELINQUENCY 1999-00 $ 6,652,430 $ 6,456,536 $ 195,894 2.94% 2000-01 7,188,685 6,993,761 194,924 2.71% 2001-02 7,741,409 7,542,204 199,205 2.57% 2002-03 8,494,397 8,274,896 219,501 2.58% 2003-04 9,271,388 9,066,213 205,175 2.21% 2004-05 10,118,983 9,878,450 240,533 2.38% 2005-06 11,593,852 11,292,337 301,515 2.60% 2006-07 12,804,630 12,317,614 487,016 3.80% 2007-08 14,483,825 13,754,184 729,641 5.04% 2008-09 11,925,285 11,361,604 563,681 4.73% TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0; 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 FISCALYEAR 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: County of LA, Department of Auditor -Controller 155 City of Santa Clarita Ratio of Outstanding Debt by Type Last Ten Fiscal Years NOTES: (1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance the design, acquisition, improvement or construction of land, the City Hall Building and certain road improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease payments to be made by the City to Financing Authority equal to the principal and interest due on the principal and interest due on the revenue bonds. At this point of time, the RDA was not active. -The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and the liability for those certificates were removed from the general long-term debt. -On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were considered defeased and the liability for those certificates were removed from the long-term liability. -In November 2001, the Authority issued $3,200,000 in Certificates of Participation for the acquisition of parkland. (2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue Bonds, Series 2007 for the acquisition of right-of-way. (3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15525,000 in Certificates of Participation for the acquisition of open space and parkland. (4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non Housing Tax Allocation Bonds to fund certain redevelopment projects within the Newhall Redevelopment Project area. (5) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $8,850,000 in Low/Mod Housing Tax Allocation Bonds to fund certain redevelopment Housing projects within the Newhall Redevelopment Project area. Sources: City of Santa Clarita, Administrative Services Department - Finance Division 156 GOVERNMENTAL ACTIVITIES FISCAL CERTIFICATES TAX ALLOCATION CAPITAL YEAR OF PARTICIPATION (1) (3) LOANS NOTES BONDS (2) BONDS (4) (5) LEASES TOTAL 1999-00 $ 19,670,000 $ - $ 2,000,000 $ 3,019,844 $ - $ - $ - $ 394,878 $ 25,084,722 2000-01 19,670,000 3,200,000 1,870,000 2,859,195 - - - 322,347 27,921,542 2001-02 19,475,000 3,200,000 2,940,000 2,665,846 - - - 262,056 28,542,902 2002-03 18,975,000 2,665,000 4,213,913 2,507,371 - - - 183,909 28,545,193 2003-04 18,335,000 2,040,000 6,333,828 - - - - 103,275 26,812,103 2004-05 17,640,000 1,390,000 5,698,192 - - - - 23,798 24,751,990 2005-06 17,700,000 710,000 5,029,113 - - - - 12,211 23,451,324 2006-07 16,760,000 - 4,328,207 - 13,785,000 - - 36,401 34,909,608 2007-M 15,790,000 15,525,000 3,593,734 - 13,575,000 29,860,000 8,850,000 23,676 87,217,410 2008-09 14,790,000 15,525,000 2,823,907 - 13,330,000 29,860,000 8,850,000 11,370 85,190,277 NOTES: (1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance the design, acquisition, improvement or construction of land, the City Hall Building and certain road improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease payments to be made by the City to Financing Authority equal to the principal and interest due on the principal and interest due on the revenue bonds. At this point of time, the RDA was not active. -The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and the liability for those certificates were removed from the general long-term debt. -On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were considered defeased and the liability for those certificates were removed from the long-term liability. -In November 2001, the Authority issued $3,200,000 in Certificates of Participation for the acquisition of parkland. (2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue Bonds, Series 2007 for the acquisition of right-of-way. (3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15525,000 in Certificates of Participation for the acquisition of open space and parkland. (4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non Housing Tax Allocation Bonds to fund certain redevelopment projects within the Newhall Redevelopment Project area. (5) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $8,850,000 in Low/Mod Housing Tax Allocation Bonds to fund certain redevelopment Housing projects within the Newhall Redevelopment Project area. Sources: City of Santa Clarita, Administrative Services Department - Finance Division 156 2,500 2. 2,000 1,500 1,000—�-Oyy�y7t $19026 L$9241$$712 500 0 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-05 Fiscal Year 157 PERCENTAGE BUSINESS -TYPE ACTIVITIES of OUTSTANDING MASTER TOTAL TAXABLE DEBT DEBT TO LEASE LEASE PRIMARY ASSESSED PER PERSONAL OBLIGATIONS PAYABLE TOTAL GOVERNMENT VALUE CAPITA INCOME $ 284,106 $ 5,378,351 $ 5,662,457 $ 30,747,179 0.31% $ 1,099 4% - 4,656,704 4,656,704 32,578,246 0.31% 1,114.47 4% - 3,897,133 3,897,133 32,440,035 0.28% 1,063.50 4% - 3,088,996 3,088,996 31,634,189 0.26% 1,026.15 4% - 2,236,624 2,236,624 29,048,727 0.21% 923.59 3% - 1,919,312 1,919,312 26,671,302 0.18% 803.86 3% - 1,586,319 1,586,319 25,037,643 0.15% 711.54 2% - 1,236,869 1,236,869 36,146,477 0.19% 979.13 3% - 870,149 870,149 88,087,559 0.41% 2,254.84 6% - 485,304 485,304 85,675,581 0.40% 2,046.28 5% OUTSTANDING DEBT per CAPITA Last Ten Fiscal Years 2,500 2. 2,000 1,500 1,000—�-Oyy�y7t $19026 L$9241$$712 500 0 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-05 Fiscal Year 157 City of Santa Clarita Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years 350 300 250 200 150 100 50 0 GENERAL BONDED DEBT OUTSTANDING per CAPITA Last Ten Fiscal Years 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Source: (1) State of California, Finance Department Fiscal Year 158 PERCENTAGE OUTSTANDING GENERAL BONDED DEBT of TAXABLE DEBT FISCAL REVENUE CERTIFICATES of ASSESSED PER YEAR POPULATION (1) BONDS PARTICIPATION TOTAL VALUE CAPITA 1999-00 151,260 $ - 5 19,670,000 $ 19,670,000 0.20% $ 130 2000-01 155,124 - 22,870,000 22,870,000 0.21% 147 2001-02 158,289 - 22,675,000 22,675,000 0.20% 143 2002-03 162,875 - 21,640,000 21,640,000 0.17% 133 2003-04 164,916 - 20,375,000 20,375,000 0.15% 124 2004-05 166,958 - 19,030,000 19,030,000 0.13% 114 2005-06 167,412 - 18,410,000 18,410,000 0.11% 110 2006-07 175,676 13,893,228 16,760,000 30,653,228 0.16% 174 2007-08 176,030 13,575,000 31,315,000 44,890,000 0.21% 255 2008-09 177,150 13,330,000 30,315,000 43,645,000 0.21% 246 350 300 250 200 150 100 50 0 GENERAL BONDED DEBT OUTSTANDING per CAPITA Last Ten Fiscal Years 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Source: (1) State of California, Finance Department Fiscal Year 158 City of Santa Clarita Direct and Overlapping Bonded Debt June 30, 2009 2008-09 Assessed Valuation: $22AI0,452,203 (Net of Redevelopment Agency Incremental Value of $375,808-0271 2008-09 Population: 177,150 Percent City's Share Total Debt Applicable of Debt 06/30/2009 To City (1) 06/30/2009 OVERLAPPING TAX AND OVERLAPPING BONDED DEBT: Los Angeles County Flood Control District Newhall County Water District - I.D. No. 2 (Sewer and Water issues) Santa Clarita Community College District William S. Hart Union High School District William S. Hart Union High School District - Community Facilities District No. 87-1 William S. Hart Union High School District - Community Facilities District No. 89-1 William S. Hart Union High School District - Community Facilities District No. 90-1 Los Angeles County Community College and Unified School Districts Castaic Union School District Newhall School District Saugus Union School District Sulphur Springs Union School District City of Santa Clarita Open Space and Parkland Assessment District City of Santa Clarita Community Facilities District No. 2002-1 City of Santa Clarita 1915 Act Bonds Los Angeles County Regional Park and Open Space Assessment District Total Overlapping Tax and Assessment Debt DIRECT AND OVERLAPPING GENERAL FUND DEBT: Los Angeles County General Fund Obligations Los Angeles County Pension Obligations Los Angeles County Superintendent of Schools - Certificates of Participation Los Angeles County Sanitation District No. 32 Authority Los Angeles County Sanitation District No. 23 Authority Santa Clarita Community College District - Certificates of Participation William S. Hart Union High School District - Certificates of Participation Castaic Union School District - Certificates of Participation 84,705,000 50,000 150,093,952 214,725,872 2,590,000 835,000 715,000 10,454,825,000 10,268,194 30,650,000 89,486,391 10,268,000 15,525,000 17,105,000 1,145,000 246,875,000 Newhall School District - Certificates of Participation Saugus Union School District - Certificates of Participation Sulphur Springs Union School District - Certificates of Participation Los Angeles Unified School District - Certificates of Participation City of Santa Clarita - Certificates of Participation Total Direct and Overlapping General Fund Debt Less: William S. Hart Union High School District QZABs supported by investment fund payments TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT COMBINED GROSS TOTAL DEBT COMBINED NET TOTAL DEBT (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City 2.378 % $ 99.218 61.498 61.489 100.000 100.000 100.000 0.00002 24.798 57.484 72.537 70.875 100.000 100.000 100.000 2.360 2,014,285 49,609 92,304,779 132,032,791 2,590,000 835,000 715,000 2,091 2,546,307 17,618,846 64,910,743 7,277,445 15,525,000 17,105,000 1,145,000 5,826,250 362,498,146 928,941,195 2.360 % 21,923,012 235,690,861 2.360 5,562,304 15,904,264 2.360 375,341 36,194,601 63.327 22,920,955 4,025,616 0.189 7,608 36,200,000 61.498 22,262,276 6,000,000 61.489 3,689,340 21,581,725 24.798 5,351,836 4,548,275 57.484 2,614,530 435,000 72.537 315,536 28,799,058 70.875 20,411,332 484,576,710 0.00002 97 28,120,000 100.000 28,120,000 133,554,167 3,689,340 129,864,827 (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non -bonded capital lease obligations. Ratios to 2008-09 Assessed Valuation Per Capita Total Overlapping Tax and Assessment Debt.................................................................. 1.62% $2,046.28 Ratios to Adjusted 2008-09 Assessed Valuation Combined Direct Debt ($43,645,000)........................................................................... 0.20% 158.74 Combined Gross Total Debt....................................................................................... 2.25% $2,800.18 Combined Net Total Debt.............._.......__.........................................._................... 2.23% $2,779.36 STATE SCHOOL BUILDING AID REPAYABLE AS OF (4/30/2009: $0 Source: Halt, 159 $ 496,052,313 (2) $ 492,362,973 City of Santa Clarita Legal Debt Margin Information Last Ten Fiscal Years Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit FISCAL YEAR 08-09 07-08 06-07 05-06 $ 21,600,880,848 $ 25% 21,740,884,855 $ 25% 19,177,131,442 $ 25% 17,160,386,817 25% 5,400,220,212 15% 5,435,221,214 15% 4,794,282,861 15% 4,290,096,704 15% 810,033,032 815,283,182 719,142,429 643,514,506 $ 810,033,032 $ 815,283,182 $ 719,142,429 $ 643,514,506 0% 0% 0% 0% Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State. Source: City of Santa Clarita, Administrative Services Department - Finance Division 160 FISCAL YEAR 04-05 03-04 02-03 01-02 00-01 99-00 $ 14,937,115,985 $ 25% 13,795,632,501 $ 25% 12,583,305,723 $ 25% 11,656,956,307 $ 25% 10,820,315,726 $ 25% 9,907,996,392 25% 3,734,278,996 15% 3,448,908,125 15% 3,145,826,431 15% 2,914,239,077 15% 2,705,078,932 15% 2,476,999,098 15% 560,141,849 517,336,219 471,873,965 437,135,862 405,761,840 371,549,865 $ 560,141,849 $ 517,336,219 $ 471,873,965 $ 437,133,862 $ 405,761,840 $ 371,549,865 01% 01,10 0% 01,110 0% 00,10 FISCAL YEAR 161 1. 'll :11 .11 ids I 11 'd l "t , It FISCAL YEAR 161 City of Santa Clarita Pledged -Revenue Coverage Last Ten Fiscal Years TRANSIT NOTE: (1) Includes Other revenues, Transfers -in, and Capital contributions (2) Includes Transfers -out and Other expenses 162 LESS NET Fiscal TRANSIT OPERATING AVAILABLE DEBT SERVICE Year REVENUES (1) EXPENSES (2) REVENUES Principal Interest COVERAGE 1999-00 S 12,108,910 $ 10,217,313 S 1,891,597 $ 950,317 $ 351,533 10.75% 2000-01 21,469,569 11,636,514 9,833,055 1,005,753 445,170 6.76% 2001-02 25,041,599 12,582,811 12,458,788 759,571 228,698 3.95% 2002-03 15,714,048 13,167,728 2,546,320 808,137 192,799 6.37% 2003-04 24,171,361 13,693,876 10,477,485 852,372 135,063 4.09% 2004-05 35,677,983 14,037,109 21,640,874 317,312 102,395 1.18% 2005-06 22,041,436 17,242,035 4,799,401 332,993 86,230 1.90% 2006-07 19,468,288 19,033,240 435,048 349,449 69,388 2.15% 2007-08 24,888,921 22,204,777 2,684,144 366,720 60,298 1.72% 2008-09 26,612,418 23,014,324 3,598,094 384,846 42,172 1.60% NOTE: (1) Includes Other revenues, Transfers -in, and Capital contributions (2) Includes Transfers -out and Other expenses 162 City of Santa Clarita Demographic and Economic Statistics Last Ten Calendar Years YEAR CITY OF SANTA CLARITA POPULATION (1) AVERAGE ANNUAL PERCENTAGE INCREASE LOS ANGELES COUNTY POPULATION (1) AVERAGE ANNUAL PERCENTAGE INCREASE PER CAPITA PERSONAL INCOME (2) UNEMPLOYMENT RATE (3) 1998 143,836 1.51% 9,225,788 0.86% $ 27,220 6.60% 1999 146,979 2.19% 9,330,116 1.13% 27,973 5.90% 2000 151,260 2.91% 9,487,409 1.69% 29,232 5.40% 2001 155,124 2.55% 9,653,900 1.75% 30,503 5.70% 2002 158,289 2.04% 9,817,400 1.69% 30,828 6.80% 2003 162,875 2.90% 9,966,200 1.52% 31,452 7.00% 2004 164,916 1.25% 10,107,451 1.42% 33,179 6.50% 2005 166,958 1.24% 10,166,417 0.58% 35,188 5.30% 2006 167,412 0.27% 10,245,572 0.78% 36,917 4.20% 2007 177,158 5.82% 10,331,939 0.84% 39,066 (4) 2.70% 2008 177,045 -0.06% 10,363,850 0.31% 41,875 4.70% 2009 177,150 0.06% 10,393,185 0.28% 42,916 7.70% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% 91% 2 2 2.90% 1 5.82% 2000 2001 2002 2003 2004 2005 2006 2007 2008 YEAR Sources: (1) State of California, Finance Department (2) U.S. Department of Commerce, Bureau of Economic Analysis (BEA) Personal Income and Unemployment rates are for the regional area, Los Angeles. The City of Santa Clarita's related information is not available. (3) State of California, Department of Employment Development (EDD) (4) Annual data is not available; average figures for first 10 months of the calendar year were utilized. 163 City of Santa Clarita Principal Employers (1) Current Fiscal Year and Three Fiscal Years Ago 2009 (2) 2005 PERCENT PERCENT NUMBER of NUMBER of of TOTAL of TOTAL EMPLOYER EMPLOYEES EMPLOYMENT EMPLOYEES EMPLOYMENT Six Flag Magic Mountain 3,689 15.64% 3,878 19.56% Princess Cruises 2,100 8.90% 1,577 7.95% Henry Mayo Newhall Memorial Hospital 1,212 5.14% 1,240 6.25% H.R. Textron 845 3.58% 662 3.34% The Master's College 755 3.20% 755 3.81% Specialty Laboratories 725 3.07% 670 3.38% Arvato Services 586 2.48% 474 2.39% California Institute of Arts 500 2.12% 515 2.60% Aerospace Dynamics 450 1.91% 435 2.19% Fanfare Media Works 407 1.73% 490 2.47% Total 11,269 47.77% 10,696 53.95% All Others 12,323 52.23% 9,131 46.05% Total employment in Santa Clarita (1) 23,592 100.000/0 19,827 100.000/0 NOTE: (1) Non-governmental employers (2) 2009 data not available, represents data from 2008 Source: 2008 Santa Clarita Valley - Real Estate and Economic Outlook W City of Santa Clarita Full -Time and Part -Time City Employees by Function Last Ten Fiscal Years Function General government Public safety (1) Public works Community development Parks and Recreation Transit Totals FISCAL YEAR 08-09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01 99-00 95.75 91.75 86.00 96.00 79.00 78.00 78.00 75.00 68.50 64.50 135.50 136.50 133.50 115.00 146.00 138.00 150.00 150.50 138.00 134.00 36.00 35.00 33.00 36.00 20.00 20.00 20.00 19.00 18.00 18.00 111.50 110.50 108.00 106.00 101.00 99.00 84.00 80.00 80.00 73.00 14.00 11.00 11.00 8.00 8.00 8.00 7.00 7.00 7.00 8.00 392.75 384.75 371.50 361.00 354.00 343.00 339.00 331.50 311.50 297.50 CITY OF SANTA CLARITA - EMPLOYEES Last Ten Fiscal Years 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 19a A1C inn n 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 Fiscal Year (1) Police and Fire services have been provided by the County Source: City of Santa Clarita, Administrative Services Department - Finance Division 165 City of Santa Clarita Operating Indicators by Function Last Ten Fiscal Years Police Parking citation issued (1) 4,126 5,257 FISCAL YEAR 6,042 5,960 5,040 3,893 FISCAL YEAR 3,322 Not Available Parking revenue collected $ 235,634 $ 288,076 $ 334,927 $ 27,257 $ 10,427 $ 10,324 $ 7,011 $ 6,239 Function 08-09 07-08 06-07 05-06 04-05 03-04 02.03 01-02 00-01 99-00 Police Parking citation issued (1) 4,126 5,257 4,587 6,042 5,960 5,040 3,893 3,674 3,322 Not Available Parking revenue collected $ 235,634 $ 288,076 $ 334,927 $ 27,257 $ 10,427 $ 10,324 $ 7,011 $ 6,239 $ 5,762 Not Available Public works: Street resurfacing (mites) 14.0 15.4 15.4 16.5 12.5 7.5 6.5 6.5 6.5 5.5 Parks and Recreation: Number of recreation classes 21284 2,393 2,535 2,357 2,443 2469 2,267 1,929 1,874 1,479 Number of facility rentals (times) 9,801 9,767 19,645 19,435 17,739 15,005 12,765 11,505 10,245 8,985 Transit: Number of customers served (2) 4,210,842 3,821,299 3,733,299 3,718,640 3,527,000 3,429,913 3,006,739 2,991,605 2,964,613 2,384,919 NOTE: (1) The City of Santa Clarita contracts Los Angeles County, Sheriff Department for its Police services. The number of citation issued and money collected me within the City's boundaries. (2) Number of customers served include those outside of the City boundaries. Source: City of Santa Clarita, Administrative Services Department - Finance Division 166 City of Santa Clarita Capital Assets Statistics by Function Last Ten Fiscal Years Function Public works: Streets (miles) Street lights (1) Traffic signals (City Jurisdiction) Traffic signals Qoint-Jurisdiction) Parks and recreation: Number of parks Community centers Transit: Stations FISCAL YEAR 08-09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01 99-00 496 496 496 496 462 462 452 452 452 426 14,739 14,429 14,000 13,200 13,000 12,000 12,000 11,647 11,647 - 172 176 166 167 165 158 151 141 134 129 5 4 4 5 5 4 2 2 2 - 20 20 19 18 17 16 16 15 13 12 1 1 1 1 - - - - - - 4 4 4 4 4 4 4 4 3 3 NOTE: (1) All of the above referred street lights are/were owned and maintained by Edison Company. The Highway Safety Lights (HSL) are the streetlights attached to traffic signals (732) and those are City owned and maintained through a contract with the County. The City took over the streetlights from County in 1998 and the City Engineering division established the inventory reports since 2001. Source: City of Santa Clarita, Administrative Services Department - Finance Division 167 santa-clarita.com