HomeMy WebLinkAbout2011-02-22 - AGENDA REPORTS - ANNUAL FIN RPT AUDIT (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 17
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval
Item to be presented by:
February 22, 2011
Darren Hernandez
JUNE 30, 2010 COMPREHENSIVE ANNUAL FINANCIAL
REPORT AND AUDIT COMMITTEE LETTER
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, 2010.
2. The Comprehensive Annual Financial Report (CAFR) and Audit Committee Letter for fiscal
year ending June 30, 2010.
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, 2010. 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.
The Comprehensive Annual Financial Report reflects the City's strong financial condition with
continued growth of the General Fund balance.
Based on the audit performed, Caporicci & Larson, CPA issued an unqualified "clean" audit
opinion letter. The opinion reflects the best level an organization can receive on its financial
statements. The letter is identified as the "Independent Auditor's Report" in the City's CAFR for
fiscal year ending June 30, 2010.
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
Redevelopment Agency State Controller Report available in the City Clerk's Reading File
Audit Committee Letter available in the City Clerk's Reading File
Comprehensive Annual Financial Report available in the City Clerk's Reading File
'Z -
V
Ll
REDEVELOPMENT AGENCIES
FINANCIAL TRANSACTIONS REPORT
COVER PAGE
Santa Clarita Redevelopment Agency
Fiscal Year: 2010 ID Number: 13981983600
Submitt by' —
Signature
Title
(mow "T pSoR f o /Z o Lv/0
Name (Please Print) Da e
Per Health and Safety Code section 33080, this report is due within six months after the and 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
I.ow 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:
To file a paper report:
1. Complete all fors as necessary.
1. Complete all forms as necessary.
2. Transmit the completed output file using a File
2. Sign this cover page, and mail complete report to either address
Transfer Protocol (FTP) program or via diskette.
below with 2 audits and the HCD report.
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
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.
F September 2009 F December 2009 F7 June 2010
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 $ 262,267
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 Bureau of the Census — Revised 3/2009
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Redevelopment Agency
of the City of
Santa Clarita
Santa Clarita, California
Basic Financial Statements and
Independent Auditors' Reports
For the year ended June 30, 2010
C&L
Caporicci & Larson, Inc.
A Subsidiary ofMarcum LLP
Certified Public Accountants
Redevelopment Agency of the City of Santa Clarita
Basic Financial Statements
For the year ended June 30, 2010
Table of Contents
Page
IndependentAuditors' Report................................................................................................................................1
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof
Net Assets................................................................................................................................6
Statement
of Activities and
Changes in Net Assets..................................................................................
7
Fund Financial Statements:
Governmental Funds
BalanceSheet.........................................................................................................................................10
Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide
Statementof Net Assets...................................................................................................................11
Statement of Revenues, Expenditures and Changes in Fund Balances........................................12
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..............................................................................................................13
Notes to Basic Financial Statements................................................................................................................15
Supplementary Information:
Computation of Low -Moderate Income Housing Capital Projects Fund -Excess Surplus 2009.......33
Report on Internal Control over Financial Reporting and
onCompliance and Other Matters................................................................................................................ 35
Scheduleof Findings and Responses..................................................................................................................39
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
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 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 fiscal year ended June 30, 2010, which collectively comprise
the Agency's basic financial statements as listed in the table of contents. These basic financial statements
are the responsibility of the Agency's management. Our responsibility is to express an opinion on these
basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. 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 consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we
express no such opinion. 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 financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Agency as of June
30, 2010, and the respective changes in financial position for the fiscal year then ended in conformity with
accounting principles generally accepted in the United States of America.
As described in Note 9 to
the Financial Statements,
the Agency has restated
its capital assets in the
Government -Wide Financials
Statements. Accordingly,
the Agency restated its net assets at
July 1, 2009.
In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2010,
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 grant agreements. 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 considered in assessing the results of our audit.
w ..c-lcpa.com
To the Board of Directors
of the Redevelopment Agency of the City of Santa Clarita
Santa Clarita, California
Page 2
The Agency has not presented a Management's Discussion and Analysis and budgetary comparison
information required by Governmental Accounting Standards Board (GASB) Statement No. 34 that the
GASB has determined is necessary to supplement, although not required to be part of, the basic financial
statements.
Our audit was conducted for the purpose of forming opinions 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 not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion on the Supplementary
Information.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
Irvine, California
December 30, 2010
2
BASIC FINANCIAL STATEMENTS
This page intentionally left blank
GOVERNMENT -WIDE FINANCIAL STATEMENTS
Redevelopment Agency of the City of Santa Clarita
Statement of Net Assets
June 30, 2010
ASSETS
Current assets:
Cash and investments
Cash and investments with fiscal agents
Receivables:
Accounts
Tax increment
Interest
Land held for resale
Total current assets
Noncurrent assets:
Deferred charges
Capital assets
Total noncurrent assets
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
Governmental
Activities
$ 41,309,037
1,165,418
26,853
71,539
85,003
763,436
43,421,286
1,275,346
15,832,788
17,108,134
60,529,420
363,706
442,026
760,994
545,000
2,111,726
24,048,962
37,490,154
61,539,116
Total liabilities 63,650,842
NET ASSETS
Invested in capital assets, net of related debt 5,5261219
Restricted for:
Low and moderate income housing 6,844,736
Redevelopment projects 351413,716
Total restricted 471784,671
Unrestricted (deficit) (50,906,093)
Total net assets (deficit) $ (3,121,422)
See accompanying Notes to Basic Financial Statements.
C7.
Redevelopment Agency of the City of Santa Clarita
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2010
Governmental
Activities
PROGRAM EXPENSES:
Community development - redevelopment $ 4,088,668
Interest expense 31107,104
Total governmental expenses 71195,772
GENERAL REVENUES:
Tax increment
31927,979
Investment earnings
626,405
Total general revenues
41554,384
Transfers to the City of Santa Clarita (1,411,699)
Change in net assets (4,053,087)
NET ASSETS (DEFICM:
Beginning of year, as restated 931,665
End of year $ (3,121,422)
See accompanying Notes to Basic Financial Statements.
7
This page intentionally left blank
FUND FINANCIAL STATEMENTS
Redevelopment Agency of the City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2010
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
Total liabilities
Fund Balances:
Reserved for:
Land held for resale
Debt service
Capital projects fund
Total fund balances
Total liabilities and fund balances
Debt Service Funds Capital Projects Funds Total
Low -Moderate Low -Moderate Governmental
Redevelopment Income Housing Redevelopment Income Housing Funds
$ 28,210 $ 9,235 $ 34,739,265 $ 6,532,327 $ 41,309,037
896,539 268,879 - - 1,165,418
- - - 26,853 26,853
- - 58,235 13,304 71,539
54,989 30,014 85,003
- - 763,436 - 763,436
$ 924,749 $ 278,114 $ 35,615,925 $ 6,602,498 $ 43,421,286
$ - $ - $ 341,295 $ 22,411 $ 363,706
- 760,994 - 760,994
- 24,669 13,465 38,134
- - 1,126,958 35,876 1,162,834
- - 763,436 - 763,436
924,749 278,114 - - 1,202,863
- - 33,725,531 6,566,622 40,292,153
924,749 278,114 34,488,967 6566,622 42,258,452
$ 924,749 S 278,114 $ 35,615,925 $ 6,602,498 S 43,421,286
See accompanying Notes to Basic Financial Statements.
WE
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, 2010
Total Fund Balances - Total Governmental Funds $ 42,258,452
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported
in the governmental funds.
Non -depreciable 15,832,788
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 $ (24,048,962)
Tax allocation bonds payable (38,190,000)
Less: Unamortized net bond discount 154,846
(62,084,116)
Debt issuance costs are reported as 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 30,1020 are: 1,275,346
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. (442,026)
A portion of interest receivable is not available to pay for current period expenditures and, therefore, are
deferred in the governmental funds. 38,134
Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
11
(3,121,422)
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, 2010
EXPENDITURES:
Current:
General government
Community development:
Administration
Professional services
Tax increment passed through to other agencies
Capital outlay
Debt service:
Bond issuance costs
Principal retirement
Interest
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from City advances
Transfers:
In
Out
Transfers out to the City of Santa Clarita
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
44,567
44,567
- - 417,764
Debt Service Funds
Capital Projects Funds
Total
86,347
Low -Moderate
Low -Moderate
Governmental
21264,991
Redevelopment Income Housing
Redevelopment Income Housing
Funds
REVENUES:
12
255
400,000 120,000 -
Tax increment
$ - $ -
$ 3,142,383 $ 785,596
$ 3,927,979
Investment income
244 12
510,349 115,800
626,405
Total revenues
244 12
3,652,732 901,396
4,554,384
EXPENDITURES:
Current:
General government
Community development:
Administration
Professional services
Tax increment passed through to other agencies
Capital outlay
Debt service:
Bond issuance costs
Principal retirement
Interest
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from City advances
Transfers:
In
Out
Transfers out to the City of Santa Clarita
Total other financing sources (uses)
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
44,567
44,567
- - 417,764
158,645
576,409
- - 1,116,099
86,347
1,202,446
- - 2,264,991
-
21264,991
- - 4,783,327
5523,242
10,306,569
- - 243
12
255
400,000 120,000 -
-
520,000
2,639,917 415,156 -
-
3,055,073
3,039,917 535,156 8,626,991
5,768,246
17,970,310
(3,039,673) (535,144) (4,974,259) (4,866,850) (13,415,926)
6,119,656
6,119,656
1,779,817
535,156 4,859,886
-
7,174,859
(4,859,886)
- (1,779,817)
(535,156)
(7,174,859)
-
- (1,411,699)
-
(1,411,699)
3,039587
535,156 1,668,370
(535,156)
4,707,957
(86)
12 (3,305,889)
(5,402,006)
(8,707,969)
924,835
278,102
37,794,856
11,968,628
50,966,421
$ 924,749 $
278,114 $
34,488,967 $
6566,622 $
42,258,452
See accompanying Notes to Basic Financial Statements.
12
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, 2010
Net Change in Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Activities were different because:
Governmental funds report capital outlay as expenditures. However, in the Statement of Activities the
cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.
This is the amount of capital outlay additions not being depreciated in the current period.
The issuance of long-term liabilities provides current financial resources to governmental funds while 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
Amortization of bond issuance costs
Repayment of debt principal was an expenditure in governmental funds, but the repayment reduced long-
term liabilities in the Government -Wide Statement of Net Assets:
Principal retirement
The Agency receives advances from the City and is not reported as a liability in the governmental funds.
Interest expense on long-term debt 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, 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.
Investment income in the Statement of Activities that does not provide current financial resources is not
reported as revenue in the governmental funds
Change in Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
13
$ (5,530)
(38,647)
(8,707,969)
10,306,569
(44,177)
520,000
(6,119,656)
5,400
(13,254)
(4,053,087)
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14
NOTES TO BASIC FINANCIAL STATEMENTS
15
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements
For the year ended June 30, 2010
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.
16
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and measurement Focus, Continued
Government - Wide Financial Statements
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.
17
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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 all of its 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 -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 -Moderate Income Housing Capital Projects Fund - is used to account for the restricted financial
resources to be used to 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.
M
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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
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
19
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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.
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 all property 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.
20
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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:
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 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 resources are
available, the Agency's policy is to apply restricted resources 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 30,2010:
Cash and Investments $ 41,309,037
Cash and Investments with Fiscal Agents 1,165,418
Total $ 42,474,455
The Agency's
funds are pooled
with the City s cash
and investments in order to generate optimum interest
income.
21
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2, CASH AND INVESTMENTS, Continued
A. 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) 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.
U.S. Government Sponsored Enterprise
Securities 5 years None None
Banker's Acceptances
180 days
Maximum
30%
Commercial Paper
270 days
Percentage or
Maximum
Negotiable Certificates of Deposit
5 years
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
Los Angeles County Pooled Investment
Funds (LACPIF) Not Applicable None None
Local Agency Investment Fund (LAIF) Not Applicable $40M None
* - Excluding amounts held by bond trustees that are not subject to California Government Code
restrictions
22
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2, CASH AND INVESTMENTS, Continued
B. Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from interest rate changes, 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.
C. 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.
D. 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.
E. 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,
2010, the City's deposits (bank balances) were insured by the Federal Depository Insurance Corporation or
collateralized as required under California Law.
23
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2, CASH AND INVESTMENTS, Continued
F. 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. The 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, 2010, 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, 2010, the City has investments in LAIF, which had invested 5.42% of the pool investment
funds in Structured Notes and Asset -Backed. The LAIF fair value factor of 1.001643776 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.
G. 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 LACPIF,
which are recorded on an amortized cost basis.
24
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3, INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund transfers:
Transfers Out
Debt Service Fund:
Redevelopment Agency
Capital Projects Fund:
Redevelopment Agency
Low -Moderate Income Housing
Totals
Transfers In
Debt Service Fund Capital Projects
Redevelopment Low -Moderate Redevelopment
Agency Income Housing Agency
1,779,817
$ 1,779,817 $
$ 4,859,886 $
535,156
535,156 $ 4,859,886 $
Total
1,779,817
535,156
7,174,859
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.
(1,411,699)
Transfers out to the City of Santa Clarita:
Capital Projects
Redevelopment
Agency Total
Transfers out to the City of Santa Clarita
$
(1,411,699)
$
(1,411,699)
Totals
$
(1,411,699)
$
(1,411,699)
Land
The transfer to the City was reimbursement for streetscape improvement expenditures (sidewalks and
building facades) paid by the City benefiting the downtown project area.
4, CAPITAL ASSETS
Capital assets of the Agency for the year ended June 30, 2010 are presented in the table below.
25
Balance
Prior Period
Balance
July 1, 2009 Additions Deletions
Adjustment
June 30, 2010
Capital assets, not being depreciated:
Land
$ - $ 5,683,242 $ -
$ 5,526,219
$ 11,209,461
Construction in progress
- 4,623,327 -
-
4,623,327
Total Capital assets
$ - $ 10,306,569 $ -
$ 5,526,219
$ 15,832,788
25
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5, LONG TERM LIABILITIES
The Agency had the following long-term liabilities at June 30, 2010:
Tax Allocation Refunding Bonds Series 2008
Tax Allocation Bonds - Housing Set -Aside
Less deferred amounts:
Issuance discount for 2008 Tax Allocation Bond
Advances payable
Totals
Balance Balance Due Within Due in More
July 1, 2009 Additions Reductions June 30, 2010 One Year Than One Year
$ 29,860,000 $ - $ (400,000) $ 29,460,000 $ 420,000 $ 29,040,000
8,850,000 - (120,000) 8,730,000 125,000 8,605,000
Bonds
Classification
(160,376)
-
51530
(154,846)
- (154,846)
17,929,306
6,119,656
-
24,048,962
- 24,048,962
$ 11363,748
$ 11783,748
2012
435,000
11346,648
$ 56,478,930 $
6,119,656
$ (514,470)
$ 62,084,116 $
545,000 $ 61,539,116
2014
470,000
11310,548
1,780,548
2015
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 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 $58,400,866 as of June 30, 2010. For the
current year, principal and interest paid on the Bonds was $1,780,148 and property tax increment net
revenues were $3,142,383. The Bonds required 56.6% of net property tax increment revenues. The
outstanding balance of the Bonds was $29,460,000 at June 30, 2010.
The annual debt service requirements on these bonds are as follows:
Yew Ending
June 30,
Principal
Interest
Total
2011
$ 420,000
$ 11363,748
$ 11783,748
2012
435,000
11346,648
1,781,648
2013
450,000
11328,948
11778,948
2014
470,000
11310,548
1,780,548
2015
490,000
11291,348
11781,348
2016-2020
2,760,000
6,140,338
8,900,338
2021-2025
3,365,000
5,510,319
8,875,319
2026-2030
4,195,000
41657,309
8,852,309
2031-2035
51290,000
31535,372
8,825,372
2036-2040
6,710,000
21082,663
8,792,663
2041-2043
4,875,000
373,625
5,248,625
Total
$ 29,460,000
$ 28,940,866
$ 58,400,866
26
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5, LONG TERM LIABILITIES, Continued
Tax Allocation Bonds - Housing Set -Aside
In 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 $17,464,002 as of June 30, 2010. For the
current year, principal and interest paid on the Bonds was $535,156 and property tax increment net
revenues were $785,596. The Bonds required 68% of net property tax increment revenues. The outstanding
balance of the Bonds was $8,730,000 at June 30, 2010.
The annual debt service requirements on the Housing Set -Aside Bonds are as follows:
Year Ending
June 30,
Principal
2011
$ 125,000
2012
125,000
2013
135,000
2014
140,000
2015
145,000
2016-2020
810,000
2021-2025
985,000
2026-2030
1,235,000
2031-2035
1,575,000
2036-2040
2,000,000
2041-2043
1,455,000
Total
$ 8,730,000
Interest Total
$ 410,256
405,256
400,056
394,556
388,856
1,851,381
1,666,488
1,413,653
1,068,125
623,750
111,625
$ 8,734,002
$ 535,256
530,256
535,056
534,556
533,856
2,661,381
2,651,488
2,648,653
2,643,125
2,623,750
1,566,625
$ 17,464,002
The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2010:
Balance
July 1, 2009
$ 160,376
Balance
Additions Deletions June 30, 2010
$ - $ (5,530) $ 1547846
Amortization expense was $5,530 for June 30, 2010.
27
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5, LONG TERM LIABILITIES, Continued
Bond Issuance Costs
The following is a summary of bond issuance costs at June 30, 2010:
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
2008 Tax Allocation Bonds $ 1,313,993 $ - $ (38,647) $ 1,275,346
Amortization expense for the year ended June 30, 2010 was $38,647.
Advances from the City
On June 1, 2008, various advances for prior redevelopment projects 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 schedule for this note; however, all outstanding principle and
accrued interest are due at maturity. The amount outstanding at June 30, 2010 is $19,148,499 including
accrued interest of $1,219,193.
On December 11, 2009, a new advance from the City was loaned to the RDA for downtown rehabilitation
project work. The new note matures June 1, 2043 and bears simple interest calculated on a monthly basis at
a variable rate based on the average monthly yield of the City's overall investment portfolio. 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, 2010 is $2,589,119 including accrued interest of $39,119.
On June 1, 2010, an additional advance from the City was completed to the RDA for downtown
rehabilitation projects. The new note matures June 1, 2043 and bears simple interest calculated on a
monthly basis at a variable rate based on the average monthly yield of the City's overall
investment portfolio. 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, 2010 is $2,311,344 including
accrued interest of $1,458.
Advances
June 2008 note $ 19,148,499
December 2009 note 2,589,119
June 2010 note 2,311,344
Total advances $ 24,048,962
En
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6, 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 in 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 tax 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, 2010, the Agency's required pass through
payments totaled $1,013,294. As of June 30, 2010, the Agency owed $760,994 to various entities.
7, COMMITMENTS AND CONTINGENCIES
The Agency had the following commitments as of June 30, 2010, as a result of the Agency entering into
agreements to fund various projects and other activities as follows:
Commitments and contracts for construction projects and capital assets:
Downtown revitalization $ 101,768
Newhall Library Facility 1,3051068
Newhall Streetscape and other improvements 1,907,165
Total $ 3,3141001
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, 2010, 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.
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 required 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.
29
Redevelopment Agency of the City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
8. DEFICIT NET ASSETS
Government -Wide Financial Statements
Deficit
Unrestricted net assets $ (3,121,422)
Total net assets $ (3,121,422)
The negative amounts in unrestricted 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.
9. PRIOR PERIOD ADJUSTMENT
Government -Wide Financial Statements
During the fiscal year
ended June 30, 2010,
the Agency
recorded the following
prior period
adjustment in
the Government -Wide
Financial Statements:
The Agency performed a review of its capital assets during the year ended June 30, 2010. As a result of
the review, the Agency identified an error and recorded an adjustment to reclassify the prior period
land amount of $5,526,219 from the City to the Agency.
Governmental Activities:
Net assets
10. SUBSEQUENT EVENTS
State Budget Crisis
Prior Period Adjustment
Net Assets,
as Previously
Reported
Capital Net Assets,
Assets as Restated
$ (4,594,554) $ 5,526,219 $ 931,665
In 2009, the State enacted legislation authorizing a two-year takeaway of Redevelopment Agency funds.
The FY 09/10 payment was $1,133,646 and it is anticipated another $242,522 would need to be submitted
for FY 10/11. This action was litigated by the California Redevelopment Association and other parties.
This lawsuit challenges the constitutionality of ABX 4-26 and seeks to prevent the State from taking
redevelopment funds for non -development purposes. As of the date of this report, the court's decision is
currently being appealed and the results have not yet been determined.
30
SUPPLEMENTARY INFORMATION
31
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32
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, 2009
OPENING FUND BALANCE, JULY 11 2009
ADD:
Property tax increment revenue
LESS:
Unspent bond proceeds
Expenditures and transfers out
Available Low/Moderate Income Housing Funds
LIMITATION (GREATER OF $11000,000 OR FOUR YEARS SET-ASIDE):
Set-aside for last four years:
2007-2008
2006-2007
2005-2006
2004-2005
Total set-aside for last four years
Base limitation
Greater amount
COMPUTED EXCESS SURPLUS - June 30, 2009
W
$ 738,730
629,316
565,935
332,994
5 2,266,975
S 1,000,000
$ 11,574,425
1,199,358
(8,850,000)
(527,053)
3,396,730
2,266,975
$ 1,129,755
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REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
35
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36
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
of the Redevelopment Agency of the City of Santa Clarita
Santa Clarita, California
We have audited the 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, 2010, and have issued our report
thereon dated December 30, 2010. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Agency's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the Agency's internal control over financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the Agency's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in
the preceding paragraph and was not designed to identify all deficiencies in internal control over
financial reporting that might be significant deficiencies, or material weaknesses and therefore, there
can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been
identified. However, as described in the accompanying schedule of findings and responses, we
identified certain deficiencies in internal control over financial reporting that we consider to be a
material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. We consider the deficiency, described in the accompanying schedule of
findings and responses to be a material weakness (2010-1).
The Agency's written response to the deficiency identified in our audit has not been subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on it.
w ..c-lcpa.com
To the Board of Directors
of the Redevelopment Agency of the City of Santa Clarita
Santa Clarita, California
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. Such provisions
included those provisions of laws identified in the Guidelines for Compliance Audits of California
Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing
Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the
Governmental Accounting and Auditing Committee of the California Society of Certified Public
Accountants. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
This report is intended solely for the information and use of management, the Board of
Directors of the Agency, others within the entity, and The State Controller and is not intended
to be and should not be used by anyone other than these specified parties.
�s" �� �, A
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
Irvine, California
December 30, 2010
RE
Redevelopment Agency of the City of Santa Clarita
Schedule of Findings and Responses
June 30, 2010
2010-1 Internal Controls over Financial Reporting
Condition:
We have determined that processes utilized for closing and reporting of financial activity for the fiscal year
ended June 30, 2009 resulted in an error on the prior year financial statements.
Criteria:
An effective internal control system provides reasonable assurance, for the safeguarding of assets, the
reliability of financial information and the compliance with laws and regulations.
Cause:
The Agency's policies and procedures for recording financial transactions were not effectively complied
with in the prior year.
Effect:
The prior year financial statements of the Agency were restated for the following error:
Government -Wide Financial Statements - The Agency identified an error and recorded an adjustment
to reclassify the prior period land purchases in the amount of $5,526,219 from the City to the Agency.
Recommendation:
We recommend that the Agency perform a more complete review and reconciliation over the year end
general ledger accounts and closing process.
Management Response:
It has not been the Agency's practice to include capital assets in the Statement of Net Assets in prior years.
The Agency has made the necessary adjustments for this fiscal year and will be adopting the
recommendations in future years.
39
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
January 28, 2011
To the Honorable Mayor, Members of City Council
and Management 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, 2010, and have issued our report therein dated January 28, 2011. 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 Government Auditing Standards
As stated in our engagement letter dated March 29, 2010, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with
your oversight 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 you or management of your
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.
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.
We are responsible for communicating significant matters related to the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are
not required to design procedures specifically to identify such matters.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope previously communicated to you
w ..c-Icpaxom
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. We noted no
transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus. There are 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:
• Investments Valuation
• Pension Plan Obligations
• Accrual for Workers Compensation and General Liabilities
• Accumulated depreciation
• Other Post Employment Benefits
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:
• Summary of Significant Accounting Policies
• Cash and Investments
• Capital Assets including depreciation
• Long -Term Debt
• Pension Plan Obligation
• Other Post Employment Benefits
• Commitments and Contingencies
• Subsequent Events
Difficulties Encountered in Performing the Audit
We encountered no 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 three audit adjusting entry during our
audit. The following material misstatements detected as a result of audit procedures were corrected by
management
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
AJE #
Account No.
Account Description
DR
CR
1
390.5201.004
Land Expense $
843,760
390.1082.001
land Held for Resale
$
843,760
900.1111.001
land
843,760
900.3032.001
Invested in General Fixed Assets
843,760
1,687520
2,531,280
To reclass the land held for resale to capital assets.
2
390.10140.003
Fair value adjustment
291,645
390.4305.001
Unrealized Gain/loss
291,645
291,645
291,645
To correct the recording of the fair value adjustment.
3
100.2003.001
Accrued Payroll
487,673
100.1001.002
Cash
487,673
Various
Cash
55,951
Various
Accrued Payroll
55,951
543,624
543,624
To correct the recording of the cash payroll account and the related liability
account.
Disagreements with Management
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 January 28, 2011. A copy of the signed management representation letter is
attached for your review.
3
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion' on certain situations. If a consultation involves
application of an accounting principle to the governmental units financial statements or a determination
of the type of auditor's opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the governmental unit's auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were
not a condition to our retention.
This information is intended solely for the use of the City 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, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
Irvine, California
CitY 0
O
o�
SANTA GLARITA
California
�j
t
Newhall Library Rendering
Comprehensive Annual Financial Report
Fiscal Year Ended = June 30, 2010
CITY OF SANTA CLARITA
(CALIFORNIA)
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2010
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, 2010
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, 2010
Table of Contents, Continued
FINANCIAL SECTION, Continued
Required Supplementary Information (Unaudited)..................................................................................79
Notes to Required Supplementary Information......................................................................................80
Budgetary Comparison Schedule:
GeneralFund..........................................................................................................................................81
Bridge and Thoroughfare Special Revenue Fund.............................................................................82
Developer Fees Special Revenue Fund...............................................................................................83
Open Space Preservation District Special Revenue Fund................................................................84
DefinedBenefit Pension Plan.....................................................................................................................85
Other Post Employment Benefits..............................................................................................................86
Supplementary Information:
Non -Major Governmental Funds:
Description of Nonmajor Governmental Funds......................................................................................89
CombiningBalance Sheet............................................................................................................................92
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................98
Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:
Bikeway Special Revenue Fund...........................................................................................................103
Gas Tax Special Revenue Fund............................................................................................................104
Park Dedication Special Revenue Fund..............................................................................................105
Proposition A Special Revenue Fund.................................................................................................106
Special Assessment Special Revenue Fund........................................................................................107
State Park Special Revenue Fund........................................................................................................108
TDASpecial Revenue Fund.................................................................................................................109
Traffic Safety Special Revenue Fund...................................................................................................110
CDGBSpecial Revenue Fund...............................................................................................................111
AQMDSpecial Revenue Fund.............................................................................................................112
Landscape Maintenance District # 1 Special Revenue Fund ...........................................................113
Stormwater Utility Special Revenue Fund.........................................................................................114
Miscellaneous Grants Special Revenue Fund....................................................................................115
Sewer Maintenance Special Revenue Fund........................................................................................116
Federal Urban Aid Special Revenue Fund.........................................................................................117
BJA Law Enforcement Special Revenue Fund...................................................................................118
Supplemental Law Grant Special Revenue Fund..............................................................................119
HOMESpecial Revenue Fund.............................................................................................................120
Library Facility Fees Special Revenue Fund......................................................................................121
Public Education and Government Special Revenue Fund.............................................................122
Proposition C Special Revenue Fund..................................................................................................123
Federal Grants Special Revenue Fund................................................................................................124
MeasureR...............................................................................................................................................125
City of Santa Clarita
Comprehensive Annual Financial Report
For the year ended June 30, 2010
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
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .......................................135
STATISTICAL SECTION (Unaudited)
NetAssets by Component........................................................................................................................................141
Changesin Net Assets..............................................................................................................................................142
Fund Balances of Governmental Funds.................................................................................................................144
Changes in Fund Balances of Governmental Funds............................................................................................146
Assessed Value and Actual Values of Taxable Property.....................................................................................148
Assessed Value and Actual Values of Taxable Property -
Redevelopment Agency.......................................150
Assessed Value - Taxable Property ........................................................................................................................152
Assessed Value - Use Category Summary............................................................................................................154
Direct and Overlapping Property Tax Rates.........................................................................................................155
PrincipalProperty Tax Payers.................................................................................................................................157
Property Tax Levies and Collections......................................................................................................................159
Ratiosof Outstanding Debt by Type......................................................................................................................160
Ratio of General Bonded Debt Outstanding..........................................................................................................162
Directand Overlapping Debt..................................................................................................................................163
LegalDebt Margin Information..............................................................................................................................164
Pledged- Revenue Coverage..................................................................................................................................166
Demographic and Economic Statistics...................................................................................................................167
PrincipalEmployers..................................................................................................................................................168
Full -Time and Part -Time City Employees by Function.......................................................................................169
OperatingIndicators by Function...........................................................................................................................170
Capital Asset Statistics by Function........................................................................................................................171
Ranking on Effective Buying Income (EBI)...........................................................................................................172
Rankingon Per Capita Market Value.....................................................................................................................173
Ranking on Total Direct Debt, Overall Debt %, & Overall
Debt Per Capita.....................................................174
City of
SANTA CLARITA
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
t .santa-clarita.wm
January 28, 2011
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, 2010 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, 2010.
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, Inc., 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, 2010. 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.
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 55
square miles. With a population of approximately 180,000, the City is the 26`s largest city in the State of
California and the fourth largest in Los Angeles County. 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 Amgen Tour of California, Volcom
Skate Park event, Southern California Junior Olympics, and the 2010 United Soccer League Woman's
Championship.
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 1 and ends June 30. The City's Municipal Code
requires the City Manager to prepare a budget and present it to the City Council each year. The budget
process begins 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.
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.
ll
The instability of national and world financial markets in the last two fiscal years 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 09-10 was successful and stable for the City.
Santa Clarita boasts one of the lowest unemployment rates in Los Angeles County at 7.7 percent, compared
to 12.5 for Los Angeles County and 12.2 percent for the state of California (as of September 2010).
Targeted employment sectors in Santa Clarita include aerospace, biomedical, entertainment, and technology.
Several noted and internationally recognized brands 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, among
others. Additionally, Disney/ABC Studios recently announced the "Studios at the Ranch" project which will
bring a dozen new sound stages and a production facility and an additional 3,000 jobs to the Santa Clarita
Valley.
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.
In 2009, the City of Santa Clarita was named as Los Angeles' most business friendly city by the Los Angeles
Economic Development Corporation, citing the City's many business -friendly practices including the
innovative 21 -Point Business Plan for Progress, adopted by the City Council in 2009. This program, which
includes more than $18 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 Val Valley Industry Association.
The City's entertainment industry enjoyed many successes in the year, with FY 09-10 resulting in an
economic impact of nearly $20 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 "NCIS," ABC Family's "Make it or Break
it," FX's "Justified," and TNT's "Franklin and Bash" base in Santa Clarita and regularly film on location in
the City.
Tourism continues to be one of the City of Santa Clarita's largest economic generators contributing more
than $2 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 2010 United Soccer League Woman's
Championship, generates additional visitors in Santa Clarita and increased revenue for the City and its
businesses
The City of Santa Clarita continually develops and implements 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) named the City of Santa Clarita the most business -
friendly city in the county. Santa Clarita has also been named one of the Top 25 City Retail Markets in
California by the California Retail Survey for two consecutive years, and new retail centers such as
Bridgeport Marketplace and Plaza at Golden Valley are anchored with strong tenants like California Pizza
Kitchen, Southern California Orthopedic Institute, 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
iii
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 2,556 employee
vouchers for jobs created or retained as a result of the Enterprise Zone program, potentially saving local
employers almost $96 million because of State income 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 Institute 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 approximately 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. Through the Enterprise Zone, the City's new job growth totals 750. 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.
The current economic downturn has directly affected the City's revenue growth, producing decreases in sales
tax, property tax, property tax in -lieu of Vehicle License Fee (VLF), Transient Occupancy Tax (TOT), and
real property transfer tax revenues for Fiscal Year 09-10.
Millions
Major Tax Revenues
35
pow -
30
■ Sales Taxes
25
■ Property Taxes
20
O VLF
■ Transient Occupancy
15
Taxes
■ Real Property Transfer
10
Tax
s
0
2005-06
2006-07 2007-08 2008-09 2009-10
Fiscal Year
iv
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.
MAJOR MILESTONES IN FISCAL YEAR 2009-2010
❖ On March 20, 2010, the City of Santa Clarita held the grand opening of the Cross Valley Connector
project. The Cross Valley Connector is a network of roadways which has taken over 10 years to
complete and at a cost of approximately $245 million. The Santa Clarita City Council hosted the event
and was attended by approximately 400-500 people.
❖ The City of Santa Clarita marks a new chapter for Old Town Newhall with a groundbreaking event for
the new Old Town Newhall library on March 16, 2010. The new Old Town Newhall Library will house
a book and media capacity of more than 135,000 items, 190 reader seats, 68 public computers, and 110
meeting seats. This new building will mark the City's second LEED-certified building.
❖ On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 and was
later signed into law by President Obama. The City of Santa Clarita received a total of $16.79 million in
funding. The funds awarded to the City will be used to fund various road maintenance projects, the
McBean Park and Ride Project, the Neighborhood Stabilization Program, and significant Transit
improvements including the Transit Maintenance Facility Solar Canopies, and the Transit Information
Network Project, to name a few.
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, 2009. This was the
twenty-first 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.
v
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, Councihnembers, 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
DH:cm
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, 2009
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.
President
Executive Director
vii
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2010
City Council
Laurene Weste MAYOR
Marsha McLean MAYOR PRO TEM
Laurie Ender COUNCILMEMBER
Bob Kellar COUNCILMEMBER
Frank Ferry 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
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C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
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, 2010, which collectively comprise the City's basic
financial statements as listed in the table of contents. These basic financial statements are the
responsibility of the City's management. Our responsibility is to express an opinion on these basic
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. 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 consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control over financial reporting.
Accordingly, we express no such opinion. 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.
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, 2010, and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2011
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.
w ..c-lcpa.com
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
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 Required Supplementary Information.
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.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
Irvine, California
January 28, 2011
7
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2010
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, 2010. 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 $879.3
million. Of this amount, $63 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 decreased by 1.83%, primarily as a result of the increase in unearned
revenue. Net assets of the business -type activities decreased by $2,346,414, or 3.35%, and net
assets of the governmental activities decreased by $14 million, or 1.70%.
• The capital assets of the City's governmental activities increased by $25.5 million, or 3.58%
over last fiscal year.
• As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $141 million. This represents a decrease of $14.2 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.
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 79-86 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 89-134 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 decreased by $16.3 million, decreasing from $895.6 million to $879.3 million.
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
2010 2009 2010 2009 2010 2009
$236,495,818 $ 272,204,340 $ 6,848,160 $ 6,580,204 $ 243,343,978 $ 278,784,544
737,167,870 711,663,024 68,160,029 66,963,851 805,327,899 778,626,875
973,663,688 983,867,364 75,008,189 73,544,055 1,048,671,877 1,057,411,419
82,018,862 84,375,842
- 82,018,862 84,375,842
80,117,362 73,942,786 7,272,660 3,462,112 87,390,022 77,404,898
162,136,224 158,318,628 7,272,660 3,462,112 169,408,884 161,780,740
657,644,168 629,621,720 67,911,725 66,963,851 725,555,893 696,100,267
90,665,041 97,414,312 - - 90,665,041 97,414,312
63,218,255 98,512,704 (176,196) 3,118,092 63,042,059 102,116,100
$ 811,527,464 $ 825,548,736 $ 67,735,529 $ 70,081,943 $ 879,262,993 $ 895,630,679
The City's Net Assets are made
up of three
components:
Investment in Capital
Assets (Net of Related
Debt), Restricted Net Assets, and
Unrestricted
Net Assets.
As of June 30, 2010, assets exceeded liabilities by $879.3 million. The largest component of the City's net
assets, 82.5%, is represented by its $725 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. In addition, resources necessary to repay the related debt
must be provided by sources other than the capital assets, as the assets themselves cannot be used to satisfy
these liabilities.
An additional portion of the City's net assets, 10.3%, represents resources subject to external restrictions on
how they may be used. The remaining 7.17% of unrestricted net assets, $63 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 decreased by $14 million over the prior year, $9 million of which is represented by increase in long
term liabilities. Increase in liabilities accounted for the majority of the overall decrease in net assets for
business -type activities of $2.4 million. The unrestricted portion of the business -type activities increased by
$3.2 million.
See independent auditors report.
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities were down by $39 million or -22.75%, due primarily to several
Capital Grants and Contributions that have not continued to fiscal year 2009-2010. The cost of all
governmental activities this year was $139.4 million, a decrease of 12.13% over the past year. As shown in
the Statement of Activities, the governmental activities expenditures were ultimately financed in part by the
taxpayers, as $25.6 million in revenues were generated by service revenues received from the performance
of these activities; another $16.2 million was received from government agencies and other organizations
that subsidized certain programs with operating grants and contributions; and another $15.3 million in
revenues was generated from capital grants and contributions. Community Development programs were
the only activities that generated net revenues of $17.7 million. Overall, the City's governmental program
and general revenues amounted to $132.9 million, which funded the expenditures and resulted in a $14
million decrease in net assets. Part of the $132.9 million program and general revenue is other non -program
governmental revenue amounting to $75.8 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
Increase/Decrease in Net Assets before
transfers
Transfers
Government Activities
2010 2009
$ 25,647,587 $ 41,768,203
16,224,269 25,079,906
15,249,634 23,636,779
25,126,278 26,820,068
37,534,705 45,876,287
Business -type Activities
2010 2009
Total
2010 2009
$ 3,181,614 $ 3,299,263 $ 28,829,201 $ 45,067,466
10,260,579 13,653,177 26,484,848 38,733,083
- - 15,249,634 23,636,779
- - 25,126,278 26,820,068
- - 37,534,705 45,876,287
896,708
6,020,940
- - 896,708
6,020,940
12,254,308
2,887,853
82,554 938,901 12,336,862
3,826,754
26,758527
48514,645
- - 26,758,527
132,933,489
172,090,036
13,524,747 17,891,341 146,458,236
189,981,379
32,116,335
30,094,380
- - 32,116,335
30,094,380
17,912,704
17,489,870
- - 17,912,704
17,489,870
26,758527
48514,645
- - 26,758,527
48,514,645
27,835,763
32,747,618
- - 27,835,763
32,747,618
13,831,341
9,761,681
- - 13,831,341
9,761,681
15545,626 14,405,047 - - 15,545,626
14,405,047
5,476,918 5,725,201 - - 5,476,918
5,725,201
- - 23,348,708 22,299,379 23,348,708
22,299,379
7,477,547
139,477,214 158,738,442 23,348,708 22,299,379 162,825,922
181,037,821
(6,543,725)
13,351,594
(9,823,961)
(4,408,038)
(7,477,547)
(8,006,128)
7,477,547
8,006,128
(16,367,686) 8,943,556
Increase/Decrease In Net Assets
(14,021,272)
5,345,466
(2,346,414)
3,598,090
(16,367,686)
8,943,556
Net Assets - Beginning of Year
825548,736
820,203,270
70,081,943
66,483,853
895,630,679
886,687,123
Net Assets - End of Year
$ 811,527,464
$ 825,548,736
$ 67,735,529
$ 70,081,943
$ 879,262,993
$ 895,630,679
See independent auditors report.
9
THE CITY AS A WHOLE (CONTINUED)
Business -Type Activities
Business -type activities decreased the City's net assets by $2.4 million for the current year. Business -type
activities revenues decreased by $4.4 million during the year for a total of $13.5 million in revenues, not
including the $7.5 million of transfers in from other governmental activities. This was largely due to a
decrease of $3.4 million in operating grants and contributions. Related transit activity expenses increased
by $1,049,329.
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $141
million, a decrease of $14.2 million over the prior year. Approximately $71 million is reserved and already
committed for specific restricted purposes, and approximately $70 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 $77.8 million, an increase of $3.9
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 $19.5 million in reserved general fund balance accounted for 27.6% of the
total reserved governmental fund balance. The unreserved general fund balance of $58.2 million, which is
available for spending at the City's discretion, is up by $16.9 million from prior year. The City's general
fund balance has reserved $19.5 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 $3 million or 78.7% 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 $964,412.
This is due primarily to
an increase in deferred revenues
from developers.
• The Open Space Preservation District fund realized a decrease of $169,485 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 $17.5 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 $23.1 million and $34.5 million for
the capital projects fund - redevelopment agency.
See independent auditors report.
10
THE CITY'S FUNDS, (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 $4.5 million, resulting in an overall 10.2% 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 decreased over the prior
year by $2.3 million or 3.35%. This $2.3 million decrease was primarily due to the increase in total liabilities.
The unrestricted portion of the business -type activities net assets decrease by $3.7 million from prior year.
The Internal Service funds net assets decreased by $205,280 or -1.09%, ending the fiscal year with a fund
balance of $18.5 million, of which $10.1 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2009-10
original (adopted)
general fund budgeted
expenditures
and transfers
of
$82 million to the final budgeted
expenditures of $85.4
million results in a net
increase of
$3
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 $664,741 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 $84.3
million.
Original Budget +
Cont. Appropriations +
Encumbrances =
Beg. Balance +
Supplemental Changes =
Final Budget
$82,382,315 +
$664,741+
$1,272,355 =
$84,319,411 +
$1,096,615 =
$85,416,026
Comparing the beginning budget of $84 million with the final budget of $85.4 million indicates the general
fund had supplemental budgetary appropriations of $1,096,615 during the fiscal year. Included in the
supplemental appropriations are the results of this year's budget review.
During the mid -year budget
review,
budgeted general fund revenue had a net increase
of $592,330.
Included in the net increase is
$461,078
in Franchise Fees and
$130,000
in Real Property Transfer
Tax.
At year end, the City's actual revenues are $234,495 more than the final budgetary estimates. Actual
expenditures were less than the final budgetary estimates by $10 million.
See independent auditors report.
11
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City had $805.3 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 Cross Valley Connector project. The Cross Valley Connector is a network of
roadways and consists of two 1,100 feet long northbound and southbound bridges, which has taken
over ten years to complete at a cost of approximately $245 million.
• Groundbreaking event of the Old Town Newhall Library. This new library will be located in Old
Town Newhall and will house a book and media capacity of more than 135,000, 190 reader seats, 68
public computers, and 110 meeting seats.
• Completion of the Newhall Streetscape Project - The Newhall Streetscape project is a major public
improvement effort which constructed and created landscaping, hardscaping, street furniture, street
lights, pavers, and mid -block crossings.
Additional
Governmental Activities
Business Type Activities
Total
statements
on pages 55
2010
2009
2010
2009
2010
2009
Land
$ 101,976,048
$ 84,071,279
$ 15,087,880
$ 10,787,880
$117,063,928
$ 94,859,159
Construction in progress
1,387,798
43,776,640
1,744,885
2,097,683
3,132,683
45,874,323
Infrastructure, net
574,110,439
531,550,499
-
-
574,110,439
531,550,499
Depreciable site
improvements,
net
21,951,041
12,917,720
1536,390
1,607566
23,487,431
14,525,286
Depreciable buildings and
improvements, net
35,381,200
36,378551
35,741,494
35,555,280
71,122,694
71,993,831
Depreciable equipment, net
2,361,344
2,968,335
14,049,380
16,915,442
16,410,724
19,883,777
TOTALS
$ 737,167,870
$ 711,663,024
$ 68,160,029
$ 66,963,851
$ 805,327,899 $
778,626,875
Major capital asset events during the year included:
• Completion of the Cross Valley Connector project. The Cross Valley Connector is a network of
roadways and consists of two 1,100 feet long northbound and southbound bridges, which has taken
over ten years to complete at a cost of approximately $245 million.
• Groundbreaking event of the Old Town Newhall Library. This new library will be located in Old
Town Newhall and will house a book and media capacity of more than 135,000, 190 reader seats, 68
public computers, and 110 meeting seats.
• Completion of the Newhall Streetscape Project - The Newhall Streetscape project is a major public
improvement effort which constructed and created 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 $85 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.
Refunding Certificates of
Participation, net
Tax Allocation Bonds
Certificates of
Participation
TABLE 4
CITY OF SANTA CLARITA'S OUTSTANDING DEBT
Governmental Activities Business -type Activities Total
2010 2009 2010 2009 2010 2009
$ 13,422,653 $ 14,420,511 $
38,035,154 38,549,624
15,525,000 15,525,000
Lease Revenue Bonds
13,172,254
13,430,912
Contract and Leases
15,525,000
15,525,000
Payable
2,019,416
2,834,795
Compensated Absences
2,529,495
21471,047
Claims Payable
50,000
50,000
TOTALS
$ 84,753,972 $
87,281,889
248,304
$ 248,304 S
$ 13,422,653
$ 14,420,511
38,035,154
38,549,624
15,525,000
15,525,000
13,172,254
13,430,912
485,304 21267,720 3,320,099
- 2,529,495 21471,047
- 50,000 507000
485.304 $ 85,002,276 S 87,767,193
The City's governmental activities had $84.8 million in debt at year-end. Governmental Activities long-
term debt decreased overall by $2.5 million during the year.
The City's business -type activities debt decreased by $237,000, from $485,304 to $248,304. 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, 2010, 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, 2010, was $3,246,962,129.
Additional information on the City of Santa Clarita's debt can be located in Note 4 to the financial
statements, on pages 58 through 66.
See independent auditors report.
13
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
The economic landscape has changed rapidly and dramatically since 2007 when the financial system
tumbled. Despite being one of Southern California's fastest growing residential and business communities
and a leader in conservative fiscal practices, the City has not been immune to the economic meltdown.
• General fund sales tax revenue remains one of the primary sources of revenue to operate general
governmental functions; it continues to be the largest revenue source, accounting for 32.3% or $25.1
million. Sales Tax has been susceptible to the slowing economy and projected to decrease by 5.2% in
2010-11.
• Property tax revenues accounts
for 31.3%
or $24.4 million in 2010-11. This is a decline of 2.8%. The
County Assessor's office makes
changes
to the City's property tax roll
daily to reflect transfers in
ownership, new construction, assessment
appeals, parcel splits and other
dynamic changes.
Budgeted general fund revenues for fiscal year 2010-11 is $70.8 million, 3.0% lower than the 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; no overall change over the previous year. Operational expenditures increased
by .3% or $187,000 and capital expenditures decreased by 62.6% or $177,000. Since the economic recession,
the City has been able to reduce General Fund spending levels by $12 million, or 13.5%. The City's 2010-11
operating budget for ALL funds decreased by 1.1 % or $1.4 million.
The City
remains dedicated to service excellence, teamwork and creativity. With the unpredictable
economic
climate, City staff from all departments and levels has provided
input on how to reduce costs
that
will keep
the City financially solvent and maintain exceptional service
levels. The 2010-11 budget
is a
reflection
of the City's commitment to the residents of Santa Clarita. This
is consistent with the City's
long
tradition of ensuring that programming for Santa Clarita's youth and children is a priority to help curb
teen
crimes. A
copy of the City's 2010-11 budget can be obtained by contacting
the City Finance Division or
visit
the web at
santa-clarita.com/cityhall/departments/cmo/citybudget.
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, 2010
ASSETS
Current assets:
Cash and investments
Cash and investments with fiscal agent
Receivables:
Accounts
Interest
Taxes
Prepaid costs
Due from other governments
Loans receivable
Land held for resale
Internal balances
Non-current assets:
Deferred charges
Deposits
Capital assets:
Nondepreciable assets
Depreciable assets, net
Total capital assets, net
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Unearned revenue
Due to other governments
Deposits payable
Interest payable
Compensated absences payable
Due within one year
Noncurrent liabilities:
Other postemployment benefits payable
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
Special revenues
Redevelopment projects
Low and moderate income housing
Special assessments
Unrestricted
Total net assets
See accompanying Notes to Basic Financial Statements.
iv
Governmental
Business -type
2,547,966
Activities
Activities
Total
103,363,846
16,832,765
120,196,611
$ 209,254,695
$ 3,988,568
$ 213,243,263
1,165,418
-
1,165,418
1574,044
32,119
1,606,163
1,299,000
-
1,299,000
10,254,588
-
10,254,588
602,235
-
602,235
7,433,585
2,775,210
10,208,795
1,649,914
-
1,649,914
763,436
-
763,436
(52,263)
52,263
-
2547,966
-
2,547,966
3,200
-
3,200
103,363,846
16,832,765
120,196,611
633,804,024
51,327,264
685,131,288
737,167,870
68,160,029
805,327,899
973,663,688
75,008,189
1,048,671,877
21,316591
6,970,080
28,286,671
16,052,626
14,409
16,067,035
787,209
-
787,209
30,716,220
-
30,716,220
995,431
-
995,431
257,408
39,867
297,275
-
248,304
248,304
7514,175
-
7,514,175
2,477,702
-
2,477,702
82,018,862
-
82,018,862
162,136,224
7,272,660
169,408,884
657,644,168
67,911,725
725,555,893
4,769,573
-
4,769,573
21,886,092
-
21,886,092
6,844,736
-
6,844,736
34,488,967
-
34,488,967
22,675,673
-
22,675,673
63,218,255
(176,196)
63,042,059
$ 811,527,464 $
67,735,529 $
879,262,993
City of Santa Clarita
Statements of Activities and Changes in Net Assets
For the Year Ended June 30, 2010
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
Business license
Unrestricted investment earnings
Miscellaneous revenue
Transfers
Total general revenues and transfers
Changes in net assets
Net assets - beginning of year
Net assets - end of year
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
FunctiongPrograms
Expenses
Services
Contributions
Contributions
Governmental activities:
General government
$ 32,116,335
$ 396,651
$ 1,308,489
$ 25,000
Public safety
17,912,704
2,194,038
27,990
-
Public works
26,758,527
3,162,052
11,671,245
1,765,224
Parks and recreation
27,835,763
3,956,933
452,917
581,230
Community development
13,831,341
15,937,913
2,763,628
12,878,180
Unallocated infrastructure depreciation
15,545,626
-
-
-
Interest and fiscal charges
5,476,918
-
-
-
Total governmental activities
139,477,214
25,647,587
16,224,269
15,249,634
Business -type activities:
Transit
23,348,708
3,181,614
10,260579
-
Total
$ 162,825,922
$ 28,829,201
$ 26,484,848
$ 15,249,634
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
Business license
Unrestricted investment earnings
Miscellaneous revenue
Transfers
Total general revenues and transfers
Changes in net assets
Net assets - beginning of year
Net assets - end of year
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business -type
Activities Activities Total
$ (30,386,195) $
- $ (30,386,195)
(15,690,676)
- (15,690,676)
(10,160,006)
- (10,160,006)
(22,844,683)
- (22,844,683)
17,748,380
17,748,380
(15,545,626)
- (15,545,626)
(5,476,918)
- (5,476,918)
(82,355,724) - (82,355,724)
- (9,906,515) (9,906,515)
(82,355,724) (9,906,515) (92,262,239)
24,511,238
-
24,511,238
25,126,278
-
25,126,278
6,407,923
-
6,407,923
2,050,857
-
2,050,857
4,564,687
-
4,564,687
2,952,915
-
2,952,915
896,708
-
896,708
268,583
-
268,583
4,871,133
82,554
4,953,687
4,161,677
-
4,161,677
(7,477,547)
7,477,547
-
68,334,452
7,560,101
75,894553
(14,021,272)
(2,346,414)
(16,367,686)
825,548,736
70,081,943
895,630,679
$ 811,527,464 $
67,735,529
S 879,262,993
21
22
FUND FINANCIAL STATEMENTS
23
City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2010
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
Advances 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
Advances 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
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
$ 67,771,347 $ 18,651,235 $ 8,718,054 $ 17,343,075
390,864
- 446,375
6,722
552,589
150,512 70,368
24,052
8,287,517
- -
108,811
59,694
- -
-
4,988,761
- -
-
352,729
- -
-
200
3,000
19,015,402
19,247,359 5,541,714
-
$ 101,419,103 $
38,049,106 $ 14,776,511 $
17,485,660
$ 6,390,485 $ 1,054,683 $ 367,226 $ 954
8,861,608 902,706 13,504,308 10,790
8,409,487 22,306,733 - -
- 20,646,417 - -
23,661,580 44,910,539 13,871,534 11,744
19,546,015
220,616
21,511,730 38,225 17,473,916
866,752
57,990,892 (28,373,163) - -
77,757,523 (6,861,433) 904,977 17,473,916
$ 101,419,103 $ 38,049,106 $ 14,776,511 S 17,485,660
24
Debt
Capital
Service Fund
Projects
Fund
1,166,406
Nonmajor Total
Redevelopment
Redevelopment Governmental Governmental
Agency
Agency Funds Funds
$ 28,210 $ 34,739,265 $ 45,573,957 $ 192,825,143
896,539 - 268,879 1,165,418
- -
728,450
1,572,411
- 54,989
313,896
1,166,406
- 58,235
1,800,025
10,254,588
-
-
59,694
- -
-
4,988,761
- -
7,080,856
7,433,585
- 763,436
-
763,436
-
-
3,200
- -
1,649,914
1,649,914
- -
-
43,804,475
$ 924,749 $ 35,615,925 $
57,415,977 $
265,687,031
$ - $ 341,295 $ 5,612,648 $ 13,767,291
- 24,669 6,689,346 29,993,427
- 760,994 26,215 787,209
- - - 30,716,220
- - 4,988,761 4,988,761
24,048,962 - - 44,695,379
24,048,962 1,126,958 17,316,970 124,948,287
19,546,015
39,023,871
924,749 - 735,405 1,660,154
- 763,436 9,747,993 10,511,429
- - - 220,616
- - 26,484,169 27,350,921
- 33,725,531 - 33,725,531
(24,048,962) - 3,131,440 8,700,207
(23,124,213) 34,488,967 40,099,007 140,738,744
$ 924,749 5 35,615,925 5 57,415,977 5 265,687,031
25
26
City of Santa Clarita
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2010
Total Fund Balances - Total Governmental Funds $ 140,738,744
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
Non -depreciable $ 103,363,846 $ 7,669,393
Depreciable, net of accumulated depreciation 633,804,024 735,249
Total capital assets $ 737,167,870 $ 8,404,642 728,763,228
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 2,547,966
Certain revenues in the governmental funds are deferred because they are not collected
within the prescribed time period after yearend. However, these revenues are included
in the government -wide statements.
Change in deferred revenue and unearned revenue 13,940,801
OPEB obligations are not a current liability. Therefore are not included in the
governmental fund financials. (7,514,175)
Government- Less
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
Capital leases - current
Loans payable - current
Long-term debt - due within one year
Compensated absences - noncurrent
Loans payable - noncurrent
Long-term debt - noncurrent
Deferred discount/premiums
Claims payable
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.
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. Internal
balances of $52,263 are not included.
Net assets of governmental activities
See accompanying Notes to Basic Financial Statements.
27
$ (1,624) $ -
(601,078) -
(1,875,000) -
(2,272,087) -
(1,416,714) -
(78,675,000) -
394,939 -
(50,000) (50,000)
$ (84,496,564) $ (50,000) (84,446,564)
(995,431)
18,492,895
$ 811,527,464
City of Santa Clarita
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2010
EXPENDITURES
Current:
General government
14,315,072
-
Special Revenue Funds
1,263,146
Public safety
17,600,951
-
-
Open Space
Public works
12,870,256
Bridge and
Developer
Preservation
Parks and recreation
General
Thoroughfare
Fees
District
REVENUES:
4,527,958
-
719,263
-
Taxes
$ 59,549,071 $
-
$ - $
1,677,326
Licenses and permits
4,093,250
-
-
-
Developer fees
-
1,671,160
1,250,308
-
Investment income
2,425,941
1,015,254
335,108
129,987
Revenue from other agencies
680,167
-
-
-
Fines and forfeitures
406,267
-
-
-
Service charges
5,281,736
-
-
544,167
Other revenue
137,620
221,849
-
-
Overhead reimbursement
2,943,287
-
-
-
Total revenues
75,517,339
2,908,263
1,585,416
1,807,313
EXPENDITURES
Current:
General government
14,315,072
-
-
1,263,146
Public safety
17,600,951
-
-
-
Public works
12,870,256
1,433,149
-
-
Parks and recreation
19,115,239
-
-
-
Community development
4,527,958
-
719,263
-
Capital outlay
-
4,691,971
1,164,752
-
Debt service:
Bond issuance costs
-
-
-
-
Principal retirement
442,137
-
-
-
interest and fiscal charges
20,542
432,728
-
-
Total expenditures
68,892,155
6,557,848
1,884,015
1,263,146
REVENUES OVER (UNDER) EXPENDITURES
6,625,184
(3,649,585)
(298,599)
544,167
OTHER FINANCING SOURCES (USES):
Transfers in
3,776,171
627,031
-
-
Transfers out
(6,543,029)
-
(665,813)
(713,652)
Total other financing sources (uses)
(2,766,858)
627,031
(665,813)
(713,652)
Net change in fund balances
3,858,326
(3,022,554)
(964,412)
(169,485)
FUND BALANCES:
Beginning of year
73,899,197
(3,838,879)
1,869,389
17,643,401
End of year
$ 77,757,523 S
(6,861,433) $
904,977 $
17,473,916
See accompanying Notes to Basic Financial Statements.
28
Debt
Capital
Service Fund
Projects
Fund
3,053,363
Nonmaijor Total
Redevelopment
Redevelopment Governmental Governmental
Agency
Agency Funds Funds
$ - $ 3,142,383 $ 16,346,049 $
80,714,829
- - -
4,093,250
- - 131,895
3,053,363
244 510,349 1,069,042
5,485,925
- - 33,200,978
33,881,145
- - 1,530,051
1,936,318
- 5,530,785
10,812,521
- - 3,932,167
4,291,636
- - -
2,943,287
244 3,652,732 61,740,967
147,212,274
44,567 12,328,725
27,951,510
- 261,178
17,862,129
- 6,291,170
20,594,575
- 933,191
20,048,430
3,958,854 1,643,867
10,849,942
4,623,327 35,703,218
46,183,268
- 243 15 258
400,000 - 1,768,977 2,611,114
2,639,917 - 2,317,965 5,411,152
3,039,917 8,626,991 61,248,306 151,512,378
(3,039,673) (4,974,259) 492,661 (4,300,104)
1,779,817
4,859,886
7,910,210
18,953,115
(4,859,886)
(3,191,516)
(12,956,766)
(28,930,662)
(3,080,069)
1,668,370
(5,046,556)
(9,977,547)
(6,119,742)
(3,305,889)
(4,553,895)
(14,277,651)
(17,004,471)
37,794,856
44,652,902
155,016,395
$ (23,124,213) 5
34,488,967 5
40,099,007 $
140,738,744
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, 2010
Net change in fund balance - total governmental funds: $ (14,277,651)
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. This amount does not include internal service fund activity of $178,588. The
following was the amount of capital assets recorded in the current period:
Capital outlay 34,255,047
Loss on disposal (127,370)
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 $18,656,060 and the depreciation expense of the internal
service funds in the amount of $337,463. (18,318597)
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 deferred charges (68,795)
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.
Principal payments on bonds, COP's, loans and capital leases 2,620,379
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 (58,448)
Accrued interest 28,036
Other post employment benefits (3,555,794)
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. (14,278,785)
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. (205,280)
Change in net assets of governmental activities $ (14,021,272)
See accompanying Notes to Basic Financial Statements.
T
PROPRIETARY FUND FINANCIAL STATEMENTS
31
32
City of Santa Clarita
Statement of Net Assets
Proprietary Funds
June 30, 2010
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Interest
Prepaid items
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
Capital leases payable
Total current liabilities
Noncurrent liabilities:
Claims payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Net assets reconciliation:
Net assets of proprietary funds
Adjustment to reflect the consolidation of
internal service fond activities related to the
Transit Fund
Net assets of business -type activities
See accompanying Notes to Basic Financial Statements.
M
Business -Type
Activity
Government
Activities
Transit
Enterprise
Internal
Service Fund
1,536,390
-
$ 3,988,568 $ 16,429,552
1,633
32,119 132,594
- 542,541
2,775,210 -
- 890,904
6,795,897 17,997,224
15,087,880
7,669,393
1,744,885
-
1,536,390
-
35,741,494
-
14,049,380
735,249
68,160,029
8,404,642
74,955,926
26,401,866
7,009,947
14,409
248,304
7,272,660
7,806,708
7,806,708
50,000
50,000
7,272,660 7,856,708
67,911,725 8,404,642
(228,459) 10,140,516
$ 67,683,266 $ 18,545,158
$ 67,683,266
52,263
$ 67,735529
City of Santa Clarita
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Year Ended June 30, 2010
OPERATING REVENUES:
Charges for services
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
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.
SW
Business -Type
Government
Activity -
Activities -
Transit
Internal
Enterprise
Service Fund
$ 3,181,614 $ 2,406,311
3,181,614 2,406,311
2,062,864
-
15,821,970
-
1,633,254
5,327,668
3,830,620
258,808
23,348,708
5,586,476
(20,167,094)
(3,180,165)
10,260,579
-
82,554
474,885
10,343,133
474,885
(9,823,961) (2,705,280)
7,689,955
(212,408)
2,500,000
-
7,477,547
2,500,000
(2,346,414)
(205,280)
70,081,943 18,750,438
$ 67,735,529 $ 18,545,158
$ (2,346,414)
$ (2,346,414)
City of Santa Clarita
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2010
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
Business -Type
Government
Principal payments on financed debt
Activity -
Activities -
Net cash provided by (used for) capital and related financing activities
Transit
Internal
CASH FLOWS FROM INVESTING ACTIVITIES:
Enterprise
Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
78,317
481,808
Receipts from customers and users
$ 3,188,269
$ 2,407,338
Other operating expenses
736,604
-
Payment to suppliers
(13,410,220)
1,116,833
Payments to employees
(2,062,864)
-
Net cash provided by (used for) operating activities
(11,548,211)
3,524,171
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash contributed by other governments
10,260579
-
Cash received from other funds
7,689,955
2,474,886
Cash paid to other funds
(212,408)
-
Net cash provided by (used for) noncapital financing activities
17,738,126
2,474,886
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets
(5,026,798)
(7,769,326)
Principal payments on financed debt
(237,000)
Net cash provided by (used for) capital and related financing activities
(5,263,798)
(7,769,326)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
78,317
481,808
Net cash provided (used) by investing activities
78,317
481,808
Net increase (decrease) in cash and cash equivalents
1,004,434
(1,288,461)
CASH AND CASH EQUIVALENTS:
Beginning of year
2,984,134
17,718,013
End of year
$ 3,988,568 $
16,429,552
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$ (20,167,094) $
(3,180,165)
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities:
Depreciation expense
3,830,620
258,808
Change in assets and liabilities:
Increase (decrease) in accounts receivable
6,655
1,027
Increase (decrease) in due from other governments
734,060
-
Increase (decrease) in prepaid expenses
-
(542,541)
Increase (decrease) in accounts payable and accrued liabilities
4,045,004
6,987,042
Increase (decrease) in deferred revenues
2,544
-
Net cash provided (used) by operating activities
$ (11,548,211) $
3,524,171
See accompanying Notes to Basic Financial Statements.
35
36
FIDUCIARY FUND FINANCIAL STATEMENTS
im
38
City of Santa Clarita
Statement of Fiduciary Net Assets
Fiduciary Fund
June 30, 2010
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Due to bondholders
Total liabilities
See accompanying Notes to Basic Financial Statements.
T
$ 9,418
300
2,080,779
$ 2,090,497
Agency Funds
ASSETS
Cash and investments
$ 282,387
Cash and investments with fiscal agent
1,793,544
Taxes receivable
12,344
Interest receivable
21222
Total assets
$ 21090,497
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Due to bondholders
Total liabilities
See accompanying Notes to Basic Financial Statements.
T
$ 9,418
300
2,080,779
$ 2,090,497
40
NOTES TO BASIC
FINANCIAL STATEMENTS
41
City of Santa Clarita
Notes to Basic Financial Statements
For the year ended June 30, 2010
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
powers 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, 2010
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, 2010
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 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, 2010
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, 2010
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. For purposes of the statement of cash flows of the
proprietary fund types, cash and cash equivalents include all investments, as the City operates an
internal cash management pool which maintains the general characteristics of a demand deposit
account.
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.
Investments are presented at fair value except as noted below. The fair value of participants' position in
the investment pools is the same as the value of the investment pools' shares and investment income,
which includes changes in fair value (i.e., realized and unrealized gains or losses). Money market funds
(such as short -term, highly liquid debt instruments including bankers' acceptances and securities
(notes, bills, and bonds of the U.S. government and its agencies), and participating interest -earnings
investment contracts (such as negotiable certificates of deposit, certificates of deposit, and repurchase
agreements) that have a remaining maturity at the time of purchase of one year or less, are carried at
amortized cost which approximates market value.
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
M
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
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.
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 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.
47
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
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.
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 and proprietary 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.
EM
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
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."
Fund Financial Statements - Reservations represent the fund balance which is not appropriable for
expenditure or which is 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.
M
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2, CASH AND INVESTMENTS
A. Cash and Investments
Cash and investments at June 30, 2010, are classified in the accompanying financial statements as
follows:
Cash and investments consisted of the following at June 30, 2010:
Cash and cash equivalents
Cash on hand
Government -Wide Statement of Net Assets
Deposits with financial institutions
(84,881)
Total cash and cash equivalents
(81,632)
Investments:
Fiduciary Funds
42,817,218
Federal Agencies
Governmental
Business -Type
8,502,091
Statement of
1,019,829
Corporate Securities
Activities
Activities
Total
Net Assets
Total
Cash and Investments
$ 209,254,695
$ 3,988,568
$ 213,243,263
$ 282,387
$ 213,525,650
Cash and Investments
with fiscal agent
1,165,418
-
1,165,418
1,793,544
2,958,962
Total
$ 210,420,113
$ 3,988,568
$ 214,408,681
$ 2,075,931
S 216,484,612
Cash and investments consisted of the following at June 30, 2010:
Cash and cash equivalents
Cash on hand
$ 3,249
Deposits with financial institutions
(84,881)
Total cash and cash equivalents
(81,632)
Investments:
US Treasury Securities
42,817,218
Federal Agencies
110,589,489
Money Markets
8,502,091
Certificates of Deposit
1,019,829
Corporate Securities
39,475,072
Local Agency Investment Fund
9,744,624
LA County Pool
1,458,959
Total investments
213,607,282
Total cash and investments
$ 213,525,650
The carrying amounts of the City's demand deposits were $(84,881) at June 30, 2010. Bank balances before
reconciling items were $338,301 at that date, the total amount of which was collateralized or insured with
securities held by the pledging financial institutions in the City's name. The overdraft of demand deposits is
due to timing differences.
50
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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.
U.S. Government Sponsored Enterprise Securities
5 years
Maximum
None
Banker's Acceptances
180 days
Percentage or
Maximum
Commercial Paper
270 days
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
Los Angeles County Pooled Investment Fund (LACPIF) 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, 2010
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 (LA1F)
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, 2010, the City had the following investment maturities:
Investment Type
US Treasury Securities
Federal Agencies
Money Market
Certificates of Deposit
Corporate Securities
Local Agency Investment Fund
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
$ 42,817,218
$ 31,107,252
$ 4,093,782
$ 6,038,204
$ 1,577,980
$ -
110,589,489
60,283,074
15,232,438
19,866,045
9,479,304
5,728,628
8,502,091
8,502,091
-
-
-
-
1,019,829
1,019,829
-
-
-
-
39,475,072
4,451,015
19,101,767
4,193,947
7,427,985
4,300,358
9,744,624
9,744,624
-
-
-
-
1,458,959
1,458,959
-
-
-
-
$ 213,607,282
S 116,566,844
$ 38,427,987
$ 30,098,196
$ 18,485,269
$ 10,028,986
52
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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
Moody's
S&P's
% of Investments
Amount
Credit
Credit
with Interest
Investment Type
Rating
Rating
Rate Risk
$ 26,234,963
12.28%
U.S. Government Sponsored
US Treasury Securities
AAA
AAA
20.04%
Federal Agencies
AAA
AAA
51.77%
Money Market
Not Rated
Not Rated
3.98%
Certificates of Deposit
Not Rated
Not Rated
0.49%
Corporate Securities
Various
Various
18.48%
Local Agency Investment Fund
Not Rated
Not Rated
4.56%
LA County Pool
Not Rated
Not Rated
0.68%
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
Investment Type
Reported
Amount
% of Total Investments
Federal National Mortgage
U.S. Government Sponsored
Association
Enterprise Securities
$ 26,234,963
12.28%
U.S. Government Sponsored
Federal Home Loan Bank
Enterprise Securities
22,166,167
10.38%
Federal Home Loan Mortgage
U.S. Government Sponsored
Corporation
Enterprise Securities
35,797,981
16.76%
U.S. Government Sponsored
Federal Farm Credit Bank
Enterprise Securities
19,690,759
9.22%
53
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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, 2010, 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, 2010, 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, 2010, the City had $9,744,624 invested in LAIF, which had invested 5.42% of the pool
investment funds in Structured Notes and Asset -Backed. The LAIF fair value factor of 1.001643776 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, 2010
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, 2010, the City's capital assets consisted of the following:
55
Governmental
Business -Type
Activities
Activities
Total
Non -depreciable assets:
Land
$ 101,976,048
$ 15,087,880
$ 117,063,928
Construction -in -progress
1,387,798
1,744,885
3,132,683
Total non -depreciable assets
103,363,846
16,832,765
120,196,611
Depreciable assets:
Site improvements
28,903,244
1,894,765
30,798,009
Building and improvements
46,537,031
41,483,799
88,020,830
Equipment
10,656,677
35,208,371
45,865,048
Infrastructure
791,084,910
-
791,084,910
Total depreciable assets
877,181,862
78,586,935
955,768,797
Less accumulated depreciation:
Site improvements
(6,952,203)
(358,375)
(7,310,578)
Building and improvements
(11,155,831)
(5,742,305)
(16,898,136)
Equipment
(8,295,333)
(21,158,991)
(29,454,324)
Infrastructure
(216,974,471)
-
(216,974,471)
Total accumulated depreciation
(243,377,838)
(27,259,671)
(270,637,509)
Total depreciable assets, net
633,804,024
51,327,264
685,131,288
Total capital assets, net
$ 737,167,870
S 68,160,029
$ 805,327,899
55
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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:
Building and improvements
46,537,031
-
-
-
46,537,031
Governmental Activities
10,456,562
347,653
Balance
-
10,656,677
Balance
732,979,344
July 1, 2009 Additions
Deletions Reclassification
June 30, 2010
791,084,910
Non -depreciable assets:
808,684,421
3,415,435
(147,538)
65,229,544
Land
$ 84,071,279 $
18,032,139 $
(127,370) $ -
$ 101,976,048
Construction -in -progress
43,776,640
22,840,702
- (65,229,544)
1,387,798
Site improvements
(5,793,764)
Total non -depreciable assets
127,847,919
40,872,841
(127,370) (65,229,544)
103,363,846
Depreciable assets
Site improvements
18,711,484
544,686
-
9,647,074
28,903,244
Building and improvements
46,537,031
-
-
-
46,537,031
Equipment
10,456,562
347,653
(147,538)
-
10,656,677
Infrastructure
732,979,344
2,523,096
-
55582,470
791,084,910
Total depreciable assets
808,684,421
3,415,435
(147,538)
65,229,544
877,181,862
Less accumulated depreciation:
Site improvements
(5,793,764)
(1,158,439)
-
-
(6,952,203)
Building and improvements
(10,158,480)
(9997,351)
-
-
(11,155,831)
Equipment
(7,488,227)
(954,644)
147,538
-
(8,295,333)
Infrastructure
(201,428,845)
(15,545,626)
-
-
(216,974,471)
Total accumulated depreciation
(224,869,316)
(18,656,060)
147,538
-
(243,377,838)
Total depreciable assets, net
583,815,105
(15,240,625)
-
65,229,544
633,804,024
Governmental activities capital assets,net
$ 711,663,024 $
25,632,216 $
(127,370) $
- $
737,167,870
Depreciation expense
was charged
to functions/ programs
of governmental activities for the fiscal year
ended June 30, 2010 as
follows:
Parks and recreation
1,939,818
Governmental Activities
General government $
436,642
Public safety
50,575
Public works
328,034
Parks and recreation
1,939,818
Community development
17,902
Internal service funds depreciation charged to programs
337,463
Allocated depreciation
3,110,434
Unallocated infrastructure depreciation
15,545,626
Total depreciation expense - governmental activities $18,656,060
56
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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:
Reclassification
June 30, 2010
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, 2009
Additions Deletions
Reclassification
June 30, 2010
$ 10,787,880
$ 4,300,000 $
- $ -
$ 15,087,880
2,097,683
716,762
- (1,069,560)
1,744,885
12,885,563
5,016,762
- (1,069,560)
16,832,765
1,894,765 -
40,414,239 -
35,198,335 10,036
77,507,339 10,036
- 1,894,765
1,069,560 41,483,799
- 35,208,371
1,069,560 78,586,935
(287,199) (71,176) - - (358,375)
(4,858,959) (883,346) - - (5,742,305)
(18,282,893) (2,876,098) - - (21,158,991)
(23,429,051) (3,830,620) - - (27,259,671)
54,078,288 (3,820,584) - 1,069,560 51,327,264
$ 66,963,851 $ 1,196,178 $ - S - 5 68,160,029
Depreciation expense for business -type activities for the fiscal year ended June 30, 2010 was charged as
follows:
Transit
Total depreciation expense
57
$ 3,830,620
$ 3,830,620
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4, LONG-TERM DEBT
The following is a summary of long-term debt transactions of the City for the year ended June 30, 2010:
Governmental Activities:
Lease Revenue Bonds:
Series 2007
Plus deferred amount for issuance
Balance
July 1, 2009 Additions
$ 13,330,000 $
premium
100,912
Total Lease Revenue Bonds
13,430,912
- (154,846)
Certificates of Participation:
38,549,624
Refunding, Series 2005
14,790,000
Series 2007
15,525,000
Less deferred amounts:
2,529,495
For issuance discounts
(369,489)
Total Certificates of Participation
29,945,511
50,000
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
Governmental Activities
29,860,000
8,850,000
Classification
Balance Due Within Due More
Deletions June 30, 2010 One Year Than One Year
- $ (255,000) $ 13,075,000 $ 270,000 $ 12,805,000
(31658) 97,254 - 97,254
(258,658) 13,172,254 270,000 12,902,254
(1,030,000) 13,760,000
- 15,525,000
32,142 (337,347)
(997,858) 28,947,653
(400,000) 29,460,000
(120,000) 81730,000
1,0601000 12,700,000
15,525,000
- (337,347)
1,060,000 27,887,653
420,000 291040,000
125,000 8,605,000
(160,376)
- (9,264)
- 51530
(154,846)
- (154,846)
2,823,907
38,549,624
- (514,470)
38,035,154
545,000 37,490,154
2,471,047
1,608,405 (1,5491957)
2,529,495
257,408
10,888
- (9,264)
1,624
1,624
-
2,823,907
- (806,115)
21017,792
601,078
1,416,714
2,471,047
1,608,405 (1,5491957)
2,529,495
257,408
21272,087
50,000
- -
50,000
-
50,000
$ 87,281,889
$ 1,608,405 $ (4,136,322)
$ 84,753,972
$ 2,735,110
$ 82,018,862
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.
RE
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Lease Revenue Bonds - Series 2007, Continued
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 $22,217,390 as of June 30, 2010. For the
current year, principal and interest paid on the Bonds was $822,156 and property tax increment net
revenues were $25,126,278. The Bonds required 3.3% of net revenues. The outstanding balance of the Bonds
was $13,075,000 at June 30, 2010.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ 270,000
$ 555,304
$ 825,304
2012
280,000
541,804
821,804
2013
295,000
527,804
822,804
2014
310,000
513,054
823,054
2015
325,000
500,654
825,654
2016-2020
1,815,000
2,298,469
4,113,469
2021-2025
2,210,000
1,905,069
4,115,069
2026-2030
2,695,000
1,413,263
4,108,263
2031-2035
3,330,000
784,813
4,114,813
2036-2037
11545,000
102,156
1,647,156
Total
$ 13,075,000
$ 9,142,390
$ 22,217,390
The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2010:
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
$ 100,912 $ - $ (3,658) $ 97,254
Amortization expense was $3,658 for June 30, 2010.
59
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4, LONG-TERM DEBT, Continued
Governmental Activities, Continued
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
2011
2012
2013
2014
2015
2016-2020
2021
Total
1,060,000
1,090,000
1,125,000
1,160,000
1,195,000
6,645,000
Interest
470,401
438,151
404,223
368,085
329,359
956,316
Total
1,530,401
1,528,151
1,529,223
1,528,085
1,524,359
7,601,316
1,485,000 29,700 1,514,700
$ 13,760,000 $ 2,996,235 $ 16,756,235
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.
M
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4, LONG-TERM DEBT, Continued
Governmental Activities, Continued
Refunding Certificates of Participation - Series 2005, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ -
$ 713,651
$ 713,651
2012
35,000
712,951
747,951
2013
60,000
711,051
771,051
2014
90,000
708,051
798,051
2015
120,000
703,851
823,851
2016-2020
1,100,000
3,411,256
4,511,256
2021-2025
2,070,000
3,086,313
5,156,313
2026-2030
3,300,000
2,488,341
5,788,341
2031-2035
4,885,000
1,532,231
6,417,231
2036-2038
3,865,000
283,456
4,148,456
Total
$ 15,525,000
$ 14,351,152
$ 29,876,152
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, 2010 for both, the Series 2005 and 2007 Certificates:
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
$ (369,489) $ - $ 32,142 $ (337,347)
Amortization expense was $32,142 for June 30, 2010.
Tax Allocation 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
reporting purposes. This bond issue is comprised of $12,065,000 serial bonds maturing annually
commencing October 1, 2010 through 2028, and three term bonds (totaling $17,795,000) maturing on
October 1, 2032, October 1, 2037, and October 1, 2043 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.
61
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4, LONG-TERM DEBT, Continued
Governmental Activities, Continued
Tax Allocation Bonds - Series 2008, Continued
The total principal and interest remaining to be paid on the Bonds is $58,400,866 as of June 30, 2010. For the
current year, principal and interest paid on the Bonds was $1,773,940 and property tax increment net
revenues were $3,142,383. The Bonds required 56% of net property tax increment revenues. The
outstanding balance of the Bonds was $29,460,000 at June 30, 2010.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ 420,000
$ 1,363,748 $
1,783,748
2012
435,000
1,346,648
1,781,648
2013
450,000
1,328,948
1,778,948
2014
470,000
1,310,548
1,780,548
2015
490,000
1,291,348
1,781,348
2016-2020
2,760,000
6,140,338
8,900,338
2021-2025
3,365,000
5,510,319
8,875,319
2026-2030
4,195,000
4,657,309
8,852,309
2031-2035
5,290,000
3,535,372
8,825,372
2036-2040
6,710,000
2,082,663
8,792,663
2041-2043
4,875,000
373,625
5,248,625
Total
$ 29,460,000
S 28,940,866 $
58,400,866
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, 2043 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 $17,464,002 as of June 30, 2010. For the
current year, principal and interest paid on the Bonds was $535,156 and property tax increment net
revenues were $785,596. The Bonds required 68% of net property tax increment revenues. The outstanding
balance of the Bonds was $8,730,000 at June 30, 2010.
62
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Tax Allocation Bonds - Housing Set -Aside, Continued
The annual debt service requirements on the Housing Set -Aside Bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ 125,000
$ 410,256 $
535,256
2012
125,000
405,256
530,256
2013
135,000
400,056
535,056
2014
140,000
394556
534,556
2015
145,000
388,856
533,856
2016-2020
810,000
1,851,381
2,661,381
2021-2025
985,000
1,666,488
2,651,488
2026-2030
1,235,000
1,413,653
2,648,653
2031-2035
1,575,000
1,068,125
2,643,125
2036-2040
2,000,000
623,750
2,623,750
2041-2043
1,455,000
111,625
1,566,625
Total
$ 8,730,000
S 8,734,002 $
17,464,002
The following is a summary of the unamortized discount outstanding at June 30, 2010 for both, the Series
2008 and the Housing set -Aside Tax Allocation Bonds:
Balance
July 1, 2009
$ (160,376)
Balance
Additions Deletions June 30, 2010
$ $ 5530 $ (154,846)
Amortization expense was $5,530 for June 30, 2010.
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
2011 $ 1,624
Total $ 1,624
63
Interest Total
$ $ 1,624
S $ 1,624
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Capital Leases Payable, Continued
The remaining assets acquired through existing capital leases are as follows:
Assets:
Equipment $ 40,608
Less: accumulated depreciation (39,254)
Total assets, net $ 1,354
Loans Payable
Balance
Balance
Due within
Due in more
July 1, 2009 Additions
Deletions June 30, 2010
one year
than one year
HUD Loans
Series 2000-A
$ 830,000 $
- $ (130,000)
$ 700,000
$ 130,000
$ 570,000
Series 2002-A Scherzinger Lane
688,000
- (77,000)
611,000
77,000
534,000
Series 2002-A Boys and Girls Clut
212,000
- (23,000)
189,000
23,000
166,000
Total HUD Loans
11730,000
- (230,000)
1,5001000
230,000
1,2701000
2002 Zion First National Bank
421,024
- (133,978)
287,046
140,332 146,714
2003 Zion First National Bank
672,883
- (442,137)
230,746
230,746 -
Total
$ 2,823,907 $
- $ (806,115)
$ 2,017,792
$ 601,078 $ 1,416,714
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 at 7.49%. The amount outstanding at June
30, 2010 is $700,000.
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 at .56%. The amount outstanding at June 30, 2010 is $611,000.
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 at .56%. The amount outstanding at June 30, 2010 is $189,000.
m
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Loans Payable, Continued
HUD Loans, Continued
Future loan payment requirements for the HUD loans are combined as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ 230,000
$ 88,424
$ 318,424
2012
230,000
73,949
303,949
2013
230,000
59,184
289,184
2014
230,000
44,056
274,056
2015
280,000
26,697
306,697
2016-2018
300,000
25,710
325,710
Total
$ 1,500,000
$ 318,020
$ 1,818,020
2002 Zion National Bank Loan
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). The amount outstanding at June 30, 2010 is $287,046.
Future payment requirements are as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ 140,332
$ 12,108
$ 152,440
2012
146,714
5,307
152,021
Total
$ 287,046
$ 17,415
$ 304,461
65
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Loans Payable, Continued
2003 Zion National Bank Loan
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%. The amount outstanding at June 30, 2010 is $230,746.
Future payment requirements are as follows:
Year Ending
June 30,
2011
Total
Compensated absences
Principal
$ 230,746 $
$ 230,746 $
Interest Total
4,200 $ 234,946
4,200 $ 234,946
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
2011 $ 248,304 $ 11,844 $ 260,148
Total $ 248,304 $ 11,844 $ 260,148
The remaining book value of assets acquired through the above capital leases are as follows:
Assets:
Equipment
Less: accumulated depreciation
Total assets, net
M
$ 2,335,964
(2,238,632)
$ 97,332
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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 $1,649,914 at June 30,
2010, 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, 2010, the City had the following short-term interfund receivables and
payables.
c
3
w
`v
s
O
0
Non -Major Governmental Funds
d
p Total
Due From Other Funds
General Total
$
41988,761
$
4,988,761
Bridge and
fees and tax increment revenues.
$
4,988,761
$
4,988,761
Thoroughfare
Developer Fees
Self Insurance
Total
The interfund payables balance represents routine and temporary cash flow assistance from the Genera]
Fund until the amounts receivable from other governments are collected to reimburse eligible expenditures.
Long -Term Advances - At June 30, 2010, the City had the following interfund long-term advances:
Advances To Other Funds
Advances between funds are to fund
capital projects.
Repayments will be funded
through future
Bridge and
fees and tax increment revenues.
General
Thoroughfare
Developer Fees
Self Insurance
Total
Ec
ut
s
C
Governmental Funds:
@;
w
Bridge and Thoroughfare
$ 508,154
$ 19,247,359
$ -
$ 890,904
$ 20,646,417
a
v
O
RDA Debt Service
18,507,248
-
5,541,714
-
24,048,962
d
Total
$ 19,015,402
$ 19,247,359
$ 5,541,714
$ 890,904
$ 44,695,379
Advances between funds are to fund
capital projects.
Repayments will be funded
through future
developer
fees and tax increment revenues.
67
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6, INTERFUND TRANSACTIONS, Continued
Transfers - At June 30, 2010, the City had the following transfers:
General Fund Developer Fees
Transfers In
General Fund $ 1,234,105 $ 19,852 $
Bridge and Thoroughfare - 627,031
Redevelopment Agency
Debt Service Fund - -
Redevelopment Agency -
Transfers Out
Open Space
Redevelopment
Redevelopment
Other
Other Governmental Funds
Preservation
Agency Debt
Agency Capital
Governmental
Transit Enterprise
District
Service Fund
Projects Fund
Funds
Fund Total
$ - $ - $ 2,322,726 $ 199,488 $ 3,776,171
- 627,031
1,779,817
1,779,817
Capital Projects Fund
- - -
4,859,886 - -
- 4,859,886
Other Governmental Funds
2,808,924 18,930 713,652
- 1,411,699 2,944,085
12,920 7,910,210
Transit Enterprise
- - -
- - 7,689,955
- 7,689,955
Internal Service Fonds
2,500,000 - -
- - -
- 2,500,000
Miscellaneous Grants
Total $ 6,543,029 $ 665,813 $ 713,652 5
4,859,886 $ 3,191516 $ 12,956,766 $
212,408 $ 29,143,070
BJA Law Enforcement
(2,078)
HOME
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, 2010, are as follows:
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.
0
Deficit Fund
Fund
Balance
Major Funds:
Bridge and Thoroughfare
$ (6,861,433)
Redevelopment Agency Debt Service Fund
(23,124,213)
Other Governmental Funds:
State Park
(673,022)
CDBG
(183)
Miscellaneous Grants
(265,319)
Federal Aid Urban
(490,832)
BJA Law Enforcement
(2,078)
HOME
(19,286)
Library Facilities Fees
(5,198)
Federal Grants
(649,868)
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.
0
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7, INDIVIDUAL FUND DISCLOSURES, Continued
B. Expenditures In Excess Of Appropriations
For the year ended June 30, 2010, expenditures exceeded appropriations in the following
programs/ functions (legal level of budgetary control) of the respective funds:
Funds
Bridge and Thoroughfare Special Revenue
Public Works
Debt Service - interest and fiscal charges
Developer Fees
Community Development
Non -Major Governmental Funds:
State Park Special Revenue
Parks and Recreation
Federal Urban Aid Special Revenue
Capital Outlay
8, DEFINED BENEFIT PENSION PLAN
Plan Description:
Excess Expenditures
Appropriations Expenditures over Appropriations
$ 11359,191 $ 17433,149 $ 73,958
432,728 432,728
703,345 719,263 15,918
261,593 510,640 249,047
2,486,462 21656,801 170,339
The City contributes to the California Public Employees' Retirement System (CAPERS), 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, 2010,
was 11.523% for non -safety
employees.
The contribution requirements of plan members and the City
are established and maybe
amended by CalPERS.
ME
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
8, DEFINED BENEFIT PENSION PLAN, Continued
Annual Pension Cost:
For 2010, the City's annual pension cost of $5,036,747 for CalPERS was equal to the City's required and
actual contribution. The required contribution was determined as part of the June 30, 2007, 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 twenty-two 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 CaIPERS' assets was
determined using techniques that smooth the effect of short-term volatility in the market value of
investments over a fifteen -year period (smoothed market value). Initial unfunded liabilities are amortized
over a closed period that depends on the plans 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, 2009, the most recent actuarial valuation date available, the plan was 80.3% funded. The
actuarial accrued liability for benefits was $81.6 million, and the actuarial value of assets was $65.5 million,
resulting in an unfunded actuarial accrued liability (UAAL) of $16.1 million. The covered payroll (annual
payroll of active employees covered by the plan) was $25.8 million, and the ratio of the UAAL to the
covered payroll was 62.24%.
Additional plan trend information for the prior two years is provided in tabular format in the Required
Supplementary Information section.
70
Annual
Percentage
Pension Cost
of APC Net Pension
Fiscal Year
(APC)
Contributed Obligation
6/30/2008
$ 4,622,000
100% $ -
6/30/2009
5,060,293
100% -
6/30/2010
5,036,747
100% -
Funded Status and Funding Progress:
As of June 30, 2009, the most recent actuarial valuation date available, the plan was 80.3% funded. The
actuarial accrued liability for benefits was $81.6 million, and the actuarial value of assets was $65.5 million,
resulting in an unfunded actuarial accrued liability (UAAL) of $16.1 million. The covered payroll (annual
payroll of active employees covered by the plan) was $25.8 million, and the ratio of the UAAL to the
covered payroll was 62.24%.
Additional plan trend information for the prior two years is provided in tabular format in the Required
Supplementary Information section.
70
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
9, POST EMPLOYMENT HEALTH BENEFITS
Plan Description. City retirees, spouses and eligible dependents, receive health plan coverage through the
Ca1PERS 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 2010, the City
contributed $328,089 to the plan.
For fiscal
year 2009-2010,
the City contributed, on an individual basis,
for employees and retirees the
following
amounts:
Unrepresented $ 12,137
SEN Local 347 $ 12,137
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
71
Total
$ 3,984,000
157,291
4,141,291
(328,089)
3,813,202
3,700,973
$ 7,514,175
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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 2010 was as follows:
Fiscal
Annual
% of Annual
Net
Year
OPEB
Annual
OPEB Cost
OPEB
Ended
Cost
Contribution
Contributed
Obligation
6/30/2009
$ 31984,000
$ 283,027
7.1%
$ 3,700,973
6/30/2010
41141,291
328,089
7.9%
71514,175
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%.
The schedule of funding progress, presented as Required Supplementary Information following the notes to
the financial statements, presents information about whether the actuarial value of plan assets is increasing
or decreasing over time relative to the Actuarial Accrued Liabilities for benefits.
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 rate. 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.
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 CalPERS, 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.
72
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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,
2010, there were 916 participants in the plans. The City contributions totaled $196,452, and employees'
contributions totaled $1,787,395.
11. RESERVES AND DESIGNATIONS OF FUND BALANCES
The City's
reserves and
designations at June 30, 2010, are
tabulated below, followed by
explanations as to
the nature
and purpose
of each reserve and designation.
-
- -
Reserves:
Eucumbrances
Prepaid costs
Deposits
Debt service
Land held for resale
Low/moderate income housing
Open space preservation district
Advance to other funds
Total reserves
Unreserved:
Designated:
Self-insurance
Special revenue purposes
Capital improvements
Undesignated
Total unreserved
Total fund balance
Debt Capital
Special Revenue Funds Service Fund Project Fund
Open Space Nonmajor
Bridge and Developer Preservation Redevelopment Redevelopment Governmental
General Thoroughfare Fees District Agency Agency Funds
$ 470,919
$ 2,264,371 $
38,225
$ - $ -
$ -
$ 3,181,371
59,694
-
-
- -
-
-
-
-
-
- 924,749
-
735,405
-
-
-
- -
763,436
-
-
-
-
- -
-
6,566,622
-
-
-
17,473,916 -
-
-
19,015,402
19,247,359
-
- -
-
-
19,546,015
21511,730
38,225
17,473,916 924,749
763,436
10,483,398
220,616
-
-
- -
-
-
-
-
866,752
- -
-
26,484,169
-
-
-
- (24,048,962)
33,775,531
-
57,990,892
(28,373,163)
-
- -
-
3,131,440
58,211,508
(28,373,163)
866,752
- (24,048,962)
33,775,531
29,615,609
$ 77,757,523
$ (6,861,433) $
904,977
$ 17,473,916 $ (23,124,213)
$ 34,538,967
$ 40,099,007
73
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
11. RESERVES AND DESIGNATIONS OF FUND BALANCES, Continued
A. Reserved for Encumbrances - Amounts reserved for encumbrances are commitments for materials and
services on purchase orders and contracts which are outstanding at year end.
B. Reserved 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. Reserved 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 was established to reflect long-term advances
made to other funds that will be repaid in future years.
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.
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, 2010, $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 on future developments, based upon information
provided from the City Attorney, outside counsel and others involved with the administration of the
programs, the City's management believes that the aggregate accrual is adequate to cover such losses.
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.
74
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
12. SELF INSURANCE, Continued
The annual member contribution is $779,173 for the Property/ Liability Program and $574,815 for the
Workers' Compensation Program (based on estimated wages). Members are subject to dividends and
assessments but no such dividends have been declared, nor have any assessments been levied for the year
ended June 30, 2010. Additionally, there are no known refunds or credits due to SDRMA.
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, 2010.
Changes in the reported claims liability since June 30, 2008 resulted in the following:
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
Claims and changes in estimates during the year ended June 30, 2010
Claims and payments during the year ended June 30, 2010
Liability as of June 30, 2010
50,000
SDRMA has published its own financial report for the year ended June 30, 2010, which can be obtained
from SDRMA, 1112 I Street, Suite 300, Sacramento, California 95814. Summary information on SDRMA is
as follows:
13, 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, 2010, was $530,000.
75
Year ended
June 30, 2010
Total Revenues
$
39,887,783
Total Expenses
$
27,647,655
Total Assets
$
93,151,195
Total Liabilities
$
48,064,871
Total Equity
$
45,086,324
13, 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, 2010, was $530,000.
75
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
13, NO COMMITMENT DEBT, Continued\
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, 2010, was $575,000.
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, 2010, was $16,980,000.
14. 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.
The City performs administrative functions for the Watershed Authority, and may, at the Authority's
request, make annual contributions. For the year ended June 30, 2010, the City did not make any
contributions.
Financial statements of the Watershed Authority may be obtained at the City's administrative offices.
76
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
15. COMMITMENTS AND CONTINGENCIES
The City has active construction projects as of June 30, 2010. At year-end, the City's commitments with
contractors for the projects are as follows:
Project
Commitment
Roads
Whites/Soledad R -Turn
$ 31121
Newhall Streetscape Phase II
11902,157
SF Road Pedestrian Facility
402,930
Roads total
21308,208
Sidewalk
Golden Oak Railroad Xing
81025
Sidewalk total
81025
Street Signs
Overhead Street Signage
94,171
Street Signs total
94,171
Traffic Signals
Intelligent Trans Subs I
11436,460
Advance System Detection
81137
Traffic Signals total
11444,597
Trails
North Valencia II Trail
56,185
South River Trail
51,405
Trails total
107,590
Total commitments
S 3,962,591
Golden Valley Road
In October 2001, the City initiated eminent domain proceedings in the Los Angeles Superior Court to
condemn certain property for the purpose of constructing the Golden Valley Road. In July 2002, the City
initiated another eminent domain action for the purpose of providing access and parking for the Soledad
Transit Center Site and the Metrolink commuter rail station. For both cases, the City was countersued by
various companies, including RFI Reality, Inc., Remediation Financial, Inc., Santa Clarita, LLC, and Bermite
Recovery, LLC (Debtors), and has been in litigations until a settlement agreement in favor of the Debtors
was approved by the Court on November 22, 2010.
The total amount of the settlement payment has been set at $25.3 million. Of this amount the City was
previously ordered by the Court to put a deposit of $13,330,607 into the Court as part of the payment for the
land. The City paid an additional $11,969,393 to cover the remaining balance of the settlement.
77
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
15. COMMITMENTS AND CONTINGENCIES, Continued
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,
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,
2010, 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.
16. PROPOSITION 1A BORROWING BY THE STATE OF CALIFORANIA
Under the provisions of Proposition 1A and as part of the 2009-10 budget package passed by the California
state legislature on July 28, 2009, the State of California borrowed 8% of the amount of property tax
revenue, including those property taxes associated with the in -lieu motor vehicle license fee, the triple flip
in lieu sales tax, and supplemental property tax, apportioned to cities, counties and special district
(excluding redevelopment agencies). The state is required to repay this borrowing plus interest by June 30,
2013. After repayment of this initial borrowing, the California legislature may consider only one additional
borrowing within a ten-year period. The amount of this borrowing pertaining to the City was $3,045,000.
Authorized with the 2009-10 State budget package, the Proposition 1A Securitization Program was
instituted by the California Statewide Communities Development Authority ("California Communities'), a
joint powers authority sponsored by the California State Association of Counties and the League of
California Cities, to enable local governments to sell their Proposition 1A receivables to California
Communities. Under the Securitization Program, California Communities simultaneously purchased the
Proposition 1A receivables and issued bonds ("Prop 1A Bonds") to provide local agencies with cash
proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The purchase price paid to the
local agencies equaled 100% of the amount of the property tax reduction. All transaction costs of issuance
and interest were paid by the State of California. Participating local agencies have no obligation on the
bonds and no credit exposure to the State. The City participated in the securitization program and
accordingly property taxes have been recorded in the same manner as if the State had not exercised its
rights under Proposition 1A. The receivable sale proceeds were equal to the book value and, as a result, no
gain or loss was recorded.
17. SUBSEQUENT EVENTS
State Budget Crisis
In 2009, the State enacted legislation authorizing a two-year takeaway of Redevelopment Agency funds.
The fiscal year 2009-2010 payment was $1,133,646 and it is anticipated another $242,522 would need to be
submitted for the fiscal year 2010-2011. This action was litigated by the California Redevelopment
Association and other parties. This lawsuit challenges the constitutionality of ABX 4-26 and seeks to
prevent the State from taking redevelopment funds for non -development purposes. As of the date of this
report, the court's decision is currently being appealed and the results have not yet been determined.
99
REQUIRED SUPPLEMENTARY
INFORMATION
(Unaudited)
79
City of Santa Clarita
Required Supplementary Information (Unaudited)
For the year ended June 30, 2010
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.
RE
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - General Fund
Fund balance, July 1, 2009
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:
Principal retirement
Interest and fiscal charges
Transfers out
Total charges to appropriations
Budgeted Amounts
Original Final
$ 73,899,197 $ 73,899,197
61,163,235
4,195,178
2,089,441
326,272
442,350
4,819,115
5,000
2,864,318
1,707,852
151,511,958
20,044,957
18,558,380
13,469,524
19,800,524
3,820,137
442,137
20,571
6,226,085
82,382,315
61,552,313
3,710,870
2,353,901
768,165
404,250
4,756,420
37,000
2,864,318
2,611,778
152,9581212
21,759,591
18,558,842
13,996,841
19,701,878
4,627,176
442,137
20,571
6,308,990
85,416,026
Actual
Amounts
$ 731899,197
59,549,071
4,093,250
2,425,941
680,167
406,267
5,281,736
137,620
2,943,287
3,776,171
153,192,707
14,315,072
17,600,951
12,870,256
19,115,239
4,527,958
442,137
20,542
6,543,029
75,435,184
Fund balance, June 30, 2010 $ 69,129,643 $ 67,542,186 $ 77,757,523
81
Variance with
Final Budget
Positive/ (Negative)
(2,0037242)
382,380
72,040
(87,998)
2,017
525,316
100,620
78,969
1,164,393
234,495
7,444,519
957,891
1,126,585
586,639
99,218
29
(234,039)
9,980,842
$ 10,215,337
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund
82
Variance with
Budgeted Amounts
Actual
Final Budget
Original
Final
Amounts
Positive /(Negative)
Fund balance, July 1, 2009, deficit
$ (3,838,879)
$ (31838,879)
$ (3,8381879)
$
Resources (inflows):
Developer fees
1,909,751
51610,464
11671,160
(3,939,304)
Investment income
471,750
389,250
11015,254
626,004
Other revenue
-
-
221,849
221,849
Transfers in
-
627,031
627,031
-
Amount available for appropriation
(11457,378)
2,787,866
(303,585)
(3,091,451)
Charges to appropriations (outflows):
Current:
Public works
183,098
1,359,191
11433,149
(73,958)
Capital outlay
2,370,472
9,559,647
4,691,971
4,867,676
Debt service - interest and fiscal charges
-
-
432,728
(432,728)
Total charges to appropriations
21553,570
10,918,838
61557,848
4,360,990
Fund balance, June 30, 2010, deficit
8 (4,010,948)
$ (8,130,972)
$ (6,861,433)
$ 1,269,539
82
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - Developer Fees Special Revenue Fund
m
Variance with
Budgeted Amounts
Actual
Final Budget
Original
Final
Amounts
Positive/ (Negative)
Fund balance, July 1, 2009
$ 1,8691389
$ 11869,389
$ 11869,389
$
Resources (inflows):
Developer fees
517,500
1,243,479
1,250,308
6,829
Investment income
459,011
459,011
335,108
(123,903)
Amount available for appropriation
2,8451900
3,571,879
3,454,805
(117,074)
Charges to appropriations (outflows):
Current:
Community development
-
703,345
719,263
(15,918)
Community development
692,370
2,075,199
1,164,752
910,447
Transfers out
-
21143,618
665,813
11477,805
Total charges to appropriations
692,370
41922,162
2,549,828
2,372,334
Fund balance, June 30, 2010
$ 2,1531530
$ (11350,283)
$ 904,977
$ 21255,260
m
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - Open Space Preservation District Special Revenue Fund
Fund balance, July 1, 2009
Resources (inflows):
Taxes
Investment income
Amount available for appropriation
Charges to appropriations (outflows):
Current:
General government
Transfers out
Total charges to appropriations
Fund balance, June 30, 2010
Variance with
Budgeted Amounts Actual Final Budget
Original Final Amounts Positive/ (Negative)
$ 17,6431401 $ 171643,401 $ 17,643,401 $
1,618,341 1,618,341
1,677,326
58,985
130,350
129,987
(363)
19,261,742 19,392,092
19,450,714
58,622
862,312
21127,451
1,263,146
713,652
71302
71302
1575,964
2,841,103
1,976,798
$ 17,685,778 5 16,550,989 $ 17,473,916 $
84
864,305
864,305
922,927
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2010
2. DEFINED BENEFIT 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)l
6/30/2007
$ 50,699
$ 60,401
$ 91702
83.94%
$ 22,981
42.22°%
6/30/2008
58,058
68,977
10,919
84.17%
24,725
44.16%
6/30/2009
65,525
81,604
16,079
80.30%
25,835
62.24%
Based on most recent actuarial valuation
99
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2010
3. OTHER POST EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress for the City's Plan
m
(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%
m
SUPPLEMENTARY INFORMATION
W
88
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.
Zo
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.
Measure R - To
account
for the 1/2 cent sales tax
revenues that Los
Angeles
County voters
approved in
November 2008 to
meet the
transportation needs of Los
Angeles County.
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.
T
91
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2010
Special Revenue Funds
LIABILITIES AND
Park
Special
FUND BALANCES
Bikeway
Gas Tax
Dedication
Proposition
Assessment
ASSETS
Cash and investments
$ 29,729
$ 1,791,795
$ 1,317,827
$ 108,933
$ 5,485,758
Cash and investments with fiscal agents
-
-
-
-
-
Receivables:
-
-
-
-
-
Accounts
-
492,376
-
-
34,631
Interest
223
14,377
10,637
877
44,263
Taxes
-
-
-
-
252,171
Due from other governments
10,967
-
-
-
-
Notes and loans receivable
-
-
-
-
-
Land held for resale
-
-
-
-
-
Total assets
$ 40,919
$ 2,298,548
$ 1,328,464
$ 109,810
$ 5,816,823
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 12,851 $
686,021 $
14,818 $
68,173 $
595,210
Deferred revenue
100
935,870
4,772
40,266
19,856
Due to other governments
-
-
-
-
-
Due to other funds
-
-
-
-
-
Total liabilities
12,951
1,621,891
19,590
108,439
615,066
Fund Balances (Deficit):
Reserved for:
Special revenue fund
-
-
-
-
-
Debt service
-
-
-
-
-
Capital projects fund
-
-
-
-
-
Unreserved:
Designated
-
676,657
1,308,874
1,371
-
Undesignated
27,968
-
-
-
5,201,757
Total fund balances (deficit)
27,968
676,657
1,308,874
1,371
5,201,757
Total liabilities and fund balances
$ 40,919 $
2,298,548 $
1,328,464 $
109,810 $
5,816,823
92
Special Revenue Funds
Landscape
State Traffic Maintenance Stormwater Miscellaneous
Park TDA Safety CDBG AQMD District #1 Utility Grants
$ 819 $ 1,673,651 $ - $ 2,332 $ 32,500 $ 18,403,030 $ 5,304,496 $ 1,836
- - - - - 43,524 129,842 -
- 13,503 - - - 148,507 42,763 -
- - 160,166 - - 944,490 346,552 -
672,828 - - 105,194 50,400 - - 265,873
- - - 142,903 - - - -
$ 673,647 $ 1,687,154 $ 160,166 $ 250,429 $ 82,900 $ 19539,551 $ 5,823,653 $ 267,709
$ 39,116 $ 1,668,257 $ - $ 39,951 $ - $ 858,143 $ 133,150 $ 65,614
672,828 18,897 - 142,903 - 94,695 171,528 344,615
26,215 - - - - - - -
608,510 - 160,166 67,758 75,400 - - 122,799
1,346,669 1,687,154 160,166 250,612 75,400 952,838 304,678 533,028
- - - - - 18586,713 5,518,975
(673,022) - - (183) 7,500 - - (265,319)
(673,022) - - (183) 7,500 18,586,713 5,518,975 (265,319)
$ 673,647 $ 1,687,154 $ 160,166 $ 250,429 $ 82,900 $ 19,539,551 $ 5,823,653 $ 267,709
P7C,'
City of Santa Clarita
Combining Balance Sheet, Continued
Non -Major Governmental Funds
June 30, 2010
94
Special Revenue Funds
Library
Sewer
Federal Aid
BJA Law
Supplemental
Facilities
Maintenance
Urban
Enforcement
Law Grant
HOME
Fees
ASSETS
Cash and investments
$ -
$
-
$ 128,434
$
-
$
-
$
-
Cash and investments with fiscal agents
-
-
-
-
-
-
Receivables:
Accounts
-
-
-
-
-
1,224
Interest
-
-
-
-
-
-
Taxes
-
-
-
-
-
-
Due from other governments
-
-
1,155
108,496
279,968
-
Notes and loans receivable
-
-
-
-
1,507,011
-
Land held for resale
-
-
-
-
-
-
Total assets
$ -
$
-
$ 129,589
$
108,496
$
1,786,979
$
1,224
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ -
$
228,098
$ 55,945
$
-
$
1,786
$
-
Deferred revenue
-
-
75,722
101,282
1,526,297
-
Due to other governments
-
-
-
-
-
-
Due to other funds
-
262,734
-
7,213
278,182
6,422
Total liabilities
-
490,832
131,667
108,495
1,806,265
6,422
Fund Balances (Deficit):
Reserved for:
Special revenue fund
-
-
-
-
-
-
Debt service
-
-
-
-
-
-
Capital projects fund
-
-
-
-
-
-
Unreserved:
Designated
-
-
-
-
-
-
Undesignated
-
(490,832)
(2,078)
1
(19,286)
(5,198)
Total fund balances (deficit)
-
(490,832)
(2,078)
1
(19,286)
(5,198)
Total liabilities and fund balances
$ -
$
-
$ 129,589
$
108,496
$
1,786,979
$
1,224
94
Special Revenue Funds Debt Service Funds
Public Redevelopment Public
Education and Federal Agency Financing
Government Proposition C Grants Measure R Total Low/Mod Authority Total
$ 303,420 $ 779,822 $ 1,685 $ - $ 35,366,067 $ 9,235 $ 457,291 $ 466,526
- - - - - 268,879 - 268,879
- - - - 701,597 - - -
Z449 6,283 - - 283,882 - - -
83,342 - - - 1,786,721 - - -
- 1,183,599 4,402,376 - 7,080,856 - - -
- - - - 1,649,914 - - -
$ 389,211 $ 1,969,704 $ 4,404,061 $ - $ 46,869,037 $ 278,114 $ 457,291 $ 735,405
$ 6,362 $ 473,842 $ 615,234 $ - $ 5,562,571 $ - $ - $ -
1,099 1,486,033 1,039,118 - 6,675,881 - - -
- - - - 26,215 - - -
- - 3,399,577 - 4,988,761 - - -
7,461 1,959,875 5,053,929 - 17,253,428 - - -
- - - - - 278,114 457,291 735,405
381,750 9,829 26,484,169 - - -
- - (649,868) - 3,131,440 - - -
3,81,750 9,829 (649,868) - 29,615,609 278,114 457,291 735,405
$ 389,211 $ 1,969,704 $ 4,404,061 S - $ 46,869,037 $ 278,114 $ 457,291 $ 735,405
95
City of Santa Clarita
Combining Balance Sheet, Continued
Non -Major Governmental Funds
June 30, 2010
LIABILITIES AND
Capital Projects Funds
FUND BALANCES
Total
General
Redevelopment
Public
Accounts payable and accrued liabilities
Nonmajor
22,411 $
Capital
Agency
Financing
-
Governmental
- 13,465
Projects
Low/Mod
Authority
Total
Funds
ASSETS
Due to other funds
-
-
- -
4,988,761
Cash and investments
$ 3,208,852
$ 6,532,327
$ 185 $
9,741,364
$ 45,573,957
Cash and investments with fiscal agents
-
-
-
-
268,879
Receivables:
Special revenue fund
-
-
Accounts
-
26,853
-
26,853
728,450
Interest
-
30,014
-
30,014
313,896
Taxes
-
13,304
-
13,304
1,800,025
Due from other governments
-
-
-
-
7,080,856
Notes and loans receivable
-
-
-
-
1,649,914
Land held for resale
-
-
-
-
-
Total assets
$ 3,208,852
$ 6,602,498
$ 185 $
9,811,535
$ 57,415,977
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 27,666 $
22,411 $
- $ 50,077 $
5,612,648
Deferred revenue
-
13,465
- 13,465
6,689,346
Due to other governments
-
-
- -
26,215
Due to other funds
-
-
- -
4,988,761
Total liabilities
27,666
35,876
- 63,542
17,316,970
Fund Balances (Deficit):
Reserved for:
Special revenue fund
-
-
- -
-
Debt service
-
-
- -
735,405
Capital projects fund
3,181,186
6,566,622
185 9,747,993
9,747,993
Unreserved:
Designated
-
-
- -
26,484,169
Undesignated
-
-
- -
3,131,440
Total fund balances (deficit)
3,181,186
6,566,622
185 9,747,993
40,099,007
Total liabilities and fund balances
$ 3,208,852 $
6,602,498 $
185 $ 9,811,535 $
57,415,977
96
97
City of Santa Clarita
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2010
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
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Special Revenue Funds
- 2,859,655
140,007 5,132,821
- 2,923,480
51,214 1,062,246
161,487 7,037 1,036,242
- - 1,635,574
Park
(27,000) (2,720,900) (1,663,681)
Special
Bikeway
Gas Tax
Dedication
Proposition A
Assessment
(16,238)
(1,488,741)
(117,332)
2,161,918
(840,644)
$ -
$ -
$ -
$ -
$ 2,166,169
2,117
31,052
44,155
7,551
205,987
121,652
6,448,897
-
2,212,618
-
23,786
-
-
1,809,168
123,769
6,503,735
44,155
2,220,169
4,181,324
- 2,859,655
140,007 5,132,821
- 2,923,480
51,214 1,062,246
161,487 7,037 1,036,242
- 217,024
- - 1,635,574
- (394,030)
(27,000) (2,720,900) (1,663,681)
- (177,006)
140,007
7,992,476
161,487
58,251
5,021,968
(16,238)
(1,488,741)
(117,332)
2,161,918
(840,644)
- 217,024
- - 1,635,574
- (394,030)
(27,000) (2,720,900) (1,663,681)
- (177,006)
(27,000) (2,720,900) (28,107)
676,657 S
1,308,874 $
(16,238) (1,665,747)
(144,332) (558,982) (868,751)
44,206
2,342,404
1,453,206
560,353
6,070,508
$ 27,968 $
676,657 S
1,308,874 $
1,371 $
3,201,737
98
Special Revenue Funds
- - - -
- 9,136,960 - -
- - - -
- - - 48,626
- - - -
Landscape
510640 - - -
- - - 422,551
State
- - - -
Traffic
- 1,283,520 286,433 378,048
- - - 230,000
Maintenance
Stormwater
Miscellaneous
Park
TDA
Safety
CDBG
AQMD
District #1
Utility
Grants
$ - $
-
$ -
$ -
$ -
$ 12,963,225
$ 81,836
$ -
-
13,451
23,837
110
575
544,844
175,322
-
372,184
1,042,612
-
10,872
277,464
-
-
1,043,102
-
-
1,530,051
-
-
-
-
-
-
-
-
-
-
-
2,774,815
-
-
-
-
1,113,627
-
-
45,643
425,582
372,184
1,056,063
1,553,888
1,124,609
278,039
13,508,069
3,077,616
1,468,684
- - - -
- 9,136,960 - -
- - - -
- - - 48,626
- - - -
22,294 - 2,166,064 13,048
510640 - - -
- - - 422,551
- - - 847,706
- - - -
544,686 455,835 - -
- 1,283,520 286,433 378,048
- - - 230,000
- - - -
- - - 102,494
- - - -
1,055,326 455,835 - 1,180,200
22,294 10,420,480 2,452,497 862,273
(683,142)
600,228 11553,888 (55,591)
255,745 3,087,589 625,119 606,411
27,000 1,477,805 - - - - 32,640 -
- (2,225,259) (1,722,132) - (197,296) (40,000) (39,267) -
27,000 (747,454) (1,722,132) - (197,296) (40,000) (6,627) -
(656,142) (147,226) (168,244) (55,591) 58,449 3,047,589 618,492 606,411
(16,880) 147,226 168,244
55,408
(50,949)
15,539,124
4,900,483
(871,730)
$ (673,022) $ - $ - $
(183) $
7,500 $
18,586,713 $
5,518,975 $
(265,319)
99
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, 2010
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
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Special Revenue Funds
Library
Sewer Federal Aid BJA Law Supplemental Facilities
Maintenance Urban Enforcement Law Grant HOME Fees
(10,832) 4,600 1 (80,641) 133,507
18,930 - - 33,204 - -
- - - - - (131,895)
18,930 - - 33,204 - (131,895)
18,930 (10,832) 4,600 33,205 (80,641) 1,612
(18,930) (480,000)
(6,678)
(33,204)
61,355
- -
-
-
- 131,895
- -
846
334
- 1,612
- -
130,027
85,946
268,020 -
- 2,645,969
-
-
- -
- 2,645,969
130,873
86,280
268,020 133,507
- -
126,273
86,279
- -
- -
-
-
348,661 -
- 2,656,801
-
-
- -
- 2,656,801
126,273
86,279
348,661 -
(10,832) 4,600 1 (80,641) 133,507
18,930 - - 33,204 - -
- - - - - (131,895)
18,930 - - 33,204 - (131,895)
18,930 (10,832) 4,600 33,205 (80,641) 1,612
(18,930) (480,000)
(6,678)
(33,204)
61,355
(6,810)
$ - $ (490,832) $
(2,078) $
1 $
(19,286) $
(5,198)
100
268,285 - -
Special Revenue Funds
- - -
- 261,178 - - -
- - 116,649
Debt Service Funds
- - -
- 933,191 - - -
- - 202,508
- 1,398,875 - - -
- 1,515,733 14,993,124
- 28,591,774 - - -
Public
- 230,000 120,000 1,418,977 1,538,977
- - -
- 102,494 415,156 1,800,315 2,215,471
Redevelopment
Public
Education and
Federal
Agency
Financing
Government
Proposition C Grants
Measure R
Total
Low/Mod
Authority Total
$ 349,223
$ - $ -
$ -
$ 15,560,453
$ -
$ - $ -
-
- -
-
131,895
-
- -
6,831
9,390 -
1,013
1,069,027
12
- 12
-
2,877,978 17,185,351
1,124,255
33,200,978
-
- -
-
- -
-
1,530,051
-
- -
-
- 110,001
-
5,530,785
-
- -
-
- 398,561
-
3,816,367
-
- -
356,054
2,887,368 17,693,913
1,125,268
60,839,556
12
- 12
268,285 - -
- 12,328,725 - - -
- - -
- 261,178 - - -
- - 116,649
- 6,291,170 - - -
- - -
- 933,191 - - -
- - 202,508
- 1,398,875 - - -
- 1,515,733 14,993,124
- 28,591,774 - - -
- - -
- 230,000 120,000 1,418,977 1,538,977
- - -
- 102,494 415,156 1,800,315 2,215,471
268,285 1,515,733 15,312,281
- 50,137,407 535,156 3,219,292 3,754,448
87,769 1,371,635 2,381,632 1,125,268 10,702,149 (535,144) (3,219,292) (3,754,436)
- - - - 3,442,177 535,156 3,219,226 3,754,382
- (1,421,231) - (1,125,268) (11,707,959) - - -
- (1,421,231) - (1,125,268) (8,265,782) 535,156 3,219,226 3,754,382
87,769 (49,596) 2,381,632 - 2,436,367 12 (66) (54)
293,981
59,425
(3,031,500)
- 27,179,242
278,102
457,357
735,459
S 381,750 $
9,829 $
(649,868) S
- $ 29,615,609 $
278,114 S
457,291 $
735,40-5
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, 2010
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
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Capital Projects
Funds
- (535,156) (713,651) (1,248,807)
(12,956,766)
Total
General Redevelopment Public
Nonmajor
Capital Agency Financing
Governmental
Projects Low/Mod Authority
Total Funds
$ - $ 785,596 $ - $ 785,596 $ 16,346,049
- - - - 131,895
- - 3 3 1,069,042
- - - - 33,200,978
- - - - 1,530,051
- - - - 5,530,785
- 115,800 - 115,800 3,932,167
- 901,396 3 901,399 61,740,967
- 244,992
1,588,202 5,523,242
244,992
7,111,444
12,328,725
261,178
6,291,170
933,191
1,643,867
35,703,218
12 3 15 15
- - - - 1,768,977
- - - - 2,317,965
1,588,202 5,768,246 3 7,356,451 61,248,306
(1,588,202) (4,866,850)
(6,455,052) 492,661
- - 713,651 713,651
7,910,210
- (535,156) (713,651) (1,248,807)
(12,956,766)
- (535,156) - (535,156)
(5,046,556)
$ 6,366,622 $
185
(1,588,202) (5,402,006) - (6,990,208)
(4,553,895)
4,769,388
11,968,628
185
16,738,201
44,652,902
$ 3,181,186
$ 6,366,622 $
185
$ 9,747,993
$ 40,099,007
102
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, 2010
REVENUES:
Investment income
Revenue from other agencies
Developer fees
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Original Final
Budget Budget
$ 6,000 $ 6,000 $
57,300 166,853
- 18,492
63,300 191,345
Variance from
Final Budget
Positive/
Actual (Negative)
21117 $ (303)
12102 (45,201)
- (18,492)
123,769 (67,576)
94,660
185,687
140,007
45,680
9060
185,687
140,007
4500
$ (31,360) $
508
(16,238) $
(2106)
103
44,206
$ 27,968
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, 2010
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
$ 27,000 $ 30,000
5,82301 7,543,825
5,85091 7573,825
Variance from
Final Budget
Positive/
Actual (Negative)
$ 31,052 $ 1,052
6,448897 (1,094,928)
23,786 23,786
6,503,735 (1,070,090)
2,958,928
2,985,900
2,85905
126,245
55000
6,176,175
5,132,821
1,043,354
3508,928
9,162,075
71992,476
1,169,599
2,3411763 (1,588,250) (1,488,741) 99509
217,024 217,024 217,024 -
(304,580) (397,060) (394,030) 3,030
(87,556) (180,036) (177,006) 31030
$ 2,254,207 $ (1,768,286) (11665,747) $ 102,539
Ml
2,342,404
$ 676,657
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, 2010
REVENUES:
Investment income
Total revenues
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
Original Final
Budget Budget
$ 45,000 $ 45,000 $
45,000 45,000
Actual
Variance from
Final Budget
Positive/
(Negative)
44,155 $ (845)
44,155 (845)
597581 161,487 436,094
597,581 161,487 436,094
45,000 (552581) (117,332) 435,249
(27,000) (27,000)
(27,000) (27,000)
$ - $ (27,000) (144,332) $ (117,332)
10
1,453,206
S 1,308,874
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, 2010
REVENUES:
Investment income
Revenue from other agencies
Total revenues
EXPENDITURES:
Current:
Community development
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
Original Final
Budget Budget
$ 45,000 $ 45,000 $
2,337,148 2,502,176
2,382,148 2,547,176
Actual
Variance from
Final Budget
Positive/
(Negative)
7,551 $
(37,449)
21212,618
(289,558)
1,462,000 1,590,133
7,037 1,583,096
21220,169
(327,007)
35,000
- 3500
52,350 52,350
51,214 1,136
1,462,000 1,590,133
7,037 1,583,096
1514,350 1,677,483
58,251 1,619,232
867,798 86903 2,161,918 11292,225
(760,298)
(2,652,760)
(21720,900)
(68,140)
(760,298)
(2,652,760)
(21720,900)
(68,140)
$ 107,500 $
(11783,067)
(558,982) $
1,224,085
106
560,353
$ 1,371
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, 2010
REVENUES:
Taxes
Investment income
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
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
$ 1,778,638 $ 2,315,313
179,970 179,970
1,604,954 1,675,652
Variance from
Final Budget
Positive/
Actual (Negative)
$ 2,166,169 $ (149,144)
205,987 26,017
11809,168 133516
3563562 41170,935 4,181,324 10,389
201,933
3,393,113
2,923,480
469,633
1,1971000
11225,206
1,062246
162,960
1536,091
2,048,909
11036,242
1,012,667
(28,107)
(28,107)
5595,024
607,228
5,021,968
1,645,260
(2,0311462) (2,496,293) (840,644) 1,655,649
1,211,847
11901,969
1,6351574
266,395
(1,223,549)
(1,930,076)
(1,663,681)
266,395
(11,702)
(28,107)
(28,107)
532,790
$ (2,043,164) $ (2,524,400)
107
(868,751) $ 1,655,649
6,070,508
$ 51201,757
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, 2010
REVENUES:
Revenue from other agencies
Total revenues
Original Final
Budget Budget
$ 932,422 $ 11199,222 $
932,422 11199,222
Actual
Variance from
Final Budget
Positive/
(Negative)
372,184 $ (827,038)
372,184 (827,038)
EXPENDITURES:
Current:
Parks and recreation
252,422 261,593
510,640
(249,047)
Capital outlay
680,000 680,000
544,686
135,314
Total expenditures
932,422 941,593
1,055,326
(113,733)
REVENUES OVER (UNDER) EXPENDITURES
- 257,629
(683,142)
(940,771)
OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
27,000 27,000
27,000 27,000
$ $ 284,629 (656,142) $
FMI S
(16,880)
$ (673,022)
(940,771)
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, 2010
REVENUES:
Investment income
Revenue from other agencies
Total revenues
EXPENDITURES:
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
7,4811349 6,938,253
7,481,349 6,938,253
Actual
Variance from
Final Budget
Positive/
(Negative)
13451
$ 13,451
11042,612
(505,641)
1,056,063
(502,190)
2,129,042
1,474,118
455,835
1,018,283
2,129,042
11474,118
455,835
1,0181283
5,352,307 51464,135 600,228 (063,907)
11477,805 1,4771805 -
(2,937,027) (2,696,996) (21225,259) 471,737
(2,937,027) (11219,191) (747,454) 471,737
$ 2,415,280 $ 41244,944 (147,226) $ (4,392,170)
109
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, 2010
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)
$ 15,000 $ 15,000 $ 23,837 $ 8,837
1,185,000 11400,000 11530,051 130,051
1,200,000 11415,000 1,55308 138,888
(1,2001000) (1,685,244) (11722,132) (36,888)
(1,200,000) (11685,244) (11722,132) (36,888)
$ - $ (270,244) (168,244) $ 102,000
110
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, 2010
REVENUES:
Investment income
Revenue from other agencies
Other revenue
Total revenues
EXPENDITURES:
Current:
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
Original Final
Budget Budget
303,635 303,635
1,220,624 1,280,347
1,524,259 11583,982
Actual
Variance from
Final Budget
Positive/
(Negative)
110 $ 110
10,872 (292,763)
11113,627 (166,720)
11124,609 (459,373)
1,150,656
125202
847,706
405,176
23000
23000
230,000
102,494
102,494
102,494
-
1,483,150
1585,376
1,180200
405,176
$ 41,109 $
(1,394)
(55591) $
(54,197)
111
55,408
$ (183)
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, 2010
REVENUES:
Investment income
Revenue from other agencies
Total revenues
EXPENDITURES:
Current:
Public works
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)
$ 21,000 $ 21,000 $ 575 $ (20,425)
201,271 226,271 277,464 51,193
222,271 247,271 278,039 30,768
31,940
36,825
22,294
14,531
31,940
36,825
22,294
14,531
190,331
210,446
255,745
45,299
(190,331) (197,212) (197,296) (84)
(190,331) (197,212) (197,296) (84)
$ - $ 13,234 58,449 $ 45,215
112
(50,949)
$ 7,500
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, 2010
REVENUES:
Taxes
Investment income
Other revenue
Total revenues
EXPENDITURES:
Current:
General government
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
$ 557,439 $ 557,439
270,000 300,000
11,643,143 11,643,143
Actual
$ 12,963,225
544,844
12,4701582 12,500,582 13,508,069
Variance from
Final Budget
Positive/
(Negative)
$ 12,4051786
244,844
(11,643,143)
1 M7 nal
10,9001485
11,083,418
9,136,960
1,946,458
3,090,000
4,01503
1,283520
2,732,343
131990,485
15,099,281
10,420,480
4,678,801
(1519,903) (2598,699) 3,087589 506,288
(40,000) (40,000) (40,000)
(40,000) (40,000) (40,000)
$ (1,559,903) $ (2,63809) 3,047589 $ 5,686,288
113
15,539,124
$ 1$586,713
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, 2010
REVENUES:
Taxes
Investment income
Service charges
Other revenues
Total revenues
EXPENDITURES:
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDIT
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
75,000
2,295,980
2,370,980
90,000
2,898,820
2,988,820
Actual
$ 81,836
175,322
2,774,815
45,643
3,077,616
Variance from
Final Budget
Positive/
(Negative)
$ 81,836
85,322
(124,005)
45,643
88,796
2,334,091
2,457,221
21166,064
291,157
150,000
388,983
286,433
102550
2,484,091
2,846,204
21452,497
393,707
(113,111) 142,616 625,119 482503
32,660
32,660
32,640
20
(1700)
(4037)
(39,267)
1,370
14,780
(71977)
(6,627)
1,390
$ (98,331) $
13039
618,492 $
483,853
114
4,900,483
5 5,518,975
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, 2010
EXPENDITURES:
Current
Public safety
59,816
48,626
Variance from
Public works
45,000
68,258
13,048
Final Budget
Parks and recreation
Original
Final
422,551
Positive/
Capital outlay
Budget
Budget
Actual
(Negative)
REVENUES:
Total expenditures
500,594
21137,403
Revenues from other agencies
$ 292,486
$ 11277,687
$ 1,043,102
$ (234,585)
Other revenue
252,148
1,544,722
425,582
(1,119,140)
Total revenues
544,634
2,822,409
11468,684
(1,353,725)
EXPENDITURES:
Current
Public safety
59,816
48,626
11,190
Public works
45,000
68,258
13,048
55,210
Parks and recreation
203,446
1,242,031
422,551
819,480
Capital outlay
252,148
767,298
378,048
389,250
Total expenditures
500,594
21137,403
862,273
1,275,130
NET CHANGE IN FUND BALANCE
44,040
685,006
606411
(78,595)
FUND BALANCE (DEFICIT):
Beginning of year (871,730)
End of year $ (265,319)
115
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Sewer Maintenance Special Revenue Fund
For the Year Ended June 30, 2010
REVENUES:
Taxes
Total revenues
OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Original Final
Budget Budget Actual
Variance from
Final Budget
Positive/
(Negative)
E'r'
18,930 18,930 _
18,930 18,930
$ $ 18,930 18,930 $
116
(18,930)
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, 2010
REVENUES:
Service charges
Total revenues
EXPENDITURES:
Current:
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ $ 21966,462 $ 2,645,969 $ (320,493)
21966,462 2,645,969 (320,493)
2,486,462 2,656,801 (170,339)
2,486,462 2765601 (170,339)
$ - $ 480,000 (10,832) $ (490,832)
117
(480,000)
$ (490,832)
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, 2010
REVENUES:
Investment income
Revenues from other agencies
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ - $ - $ 846 $ 846
174,332 272,494 130,027 (142,467)
174,332 272,494 130,873 (141,621)
174,332 271,941
174,332 271,941
$ $ 553
118
126,273
126,273
145,668
145,668
4,600 $ 4,047
(6,678)
$ (2,078)
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, 2010
REVENUES:
Investment income
Revenues from other agencies
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
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)
$ $ - $ 334 $ 334
86,280 85,946 (334)
86,280 86,280 -
86,280 86,279 1
86280 86,279 1
33,204 33,204
33,204 33,204 -
$ $ 33,204 33,205 $ (1)
119
(33,204)
$ 1
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, 2010
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
REVENUES:
Revenues from other agencies $ 860,000 $ 860,000 $ 268,020 $ (591,980)
Total revenues 860,000 860,000 268,020 (591,980)
EXPENDITURES:
Current:
Community development 860,000 860,000 348,661 511,339
Total expenditures 860 000 860,000 34$661 511,339
NET CHANGE IN FUND BALANCE $ - $ - (80,641) $ (80,641)
FUND BALANCE (DEFICIT):
Beginning of year 61,355
End of year $ (19,286)
120
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, 2010
REVENUES:
Developer fees
Investment income
Total revenues
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT:
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ - $ 144,000 $ 131,895 $ (12,105)
150 300 1,612 11312
150 144,300 133,507 (10,793)
$ 150 $ 144,300
121
(131,895) (13105)
(131,895) (13105)
1,612 $ (142,688)
(6,810)
$ (5,198)
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, 2010
REVENUES:
Taxes
Investment income
Total revenues
EXPENDITURES:
Current:
General government
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)
$ 285,000 $ 325,000 $ 349,223 $ 24,223
31000 3,000 6,831 31831
288,000 328,000 356,054 28,054
180
308,150
268,285
39,865
180
308,150
268,285
39,865
$ 287,820 $
19,850
87,769 $
(11,811)
122
293,981
$ 381,750
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, 2010
REVENUES:
Investment income
Revenue from other agencies
Total revenues
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
Original Final
Budget Budget
$ 60,000 $ 40,000 $
4,297,753 6,593,446
4,357,753 6,633446
Actual
Variance from
Final Budget
Positive/
(Negative)
9,390
$ (3010)
2,877,978
(3,715,468)
2,887,368
(3,7461078)
3,046,944
4,706,614
1,515,733
3,190,881
3,046,944
4,706,614
1,515,733
3,190,881
1,310,809 11926,832 1,371,635 (555,197)
(1,294,543)
(871,717)
(17421,231)
549,514
(1,294,543)
(871,717)
(1,421,231)
549,514
$ 16,266 $
1,055,115
(49,596)
$ (1,104,711)
123
59,425
$ 9,829
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, 2010
FUND BALANCE (DEFICIT):
Beginning of year
End of year
124
(3,031500)
$ (649,868)
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
REVENUES:
Revenues from other agencies
$ 6,975,723
$ 23,606,455
$ 17,185,351
$ (6,421,104)
Service charges
110,001
110,001
-
Other revenue
473,405
398,561
(74,844)
Total revenues
6,9751723
24,189,861
17,693,913
(6,4951948)
EXPENDITURES:
Current:
Public works
1,1871003
1,187,003
116,649
1,0701354
Community development
577,529
202,508
375,021
Capital outlay
5,796,220
18,971,982
14,993,124
31978,858
Total expenditures
6,983,223
20,736,514
151312,281
5,424,233
NET CHANGE IN FUND BALANCE
$ (7,500)
$ 3,453,347
21381,632
$ (1,071,715)
FUND BALANCE (DEFICIT):
Beginning of year
End of year
124
(3,031500)
$ (649,868)
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure R Special Revenue Fund
For the Year Ended June 30, 2010
REVENUES:
Investment income
Revenues from other agencies
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)
$ $ $ 1,013 $ 1,013
- - 1,1241255 1,1241255
11125268 1,1251268
(966500) (11125268) 158,768
(966500) (1,125,268) 158,768
$ - $ (966,500)
125
$ 1,284,036
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, 2010
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Interest
Prepaid expenses
Advances to other fund
Total current assets
Noncurrent assets:
Capital assets:
Land
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
$ 4,298,526 $ 1,492,062 $ 3579,346 $ 7,059,618 $ 16,429,552
1,633
- - - 1,633
34,688
12,043 28,891 56,972 132,594
542,541
- - - 542,541
890,904
- - - 890,904
5,768,292
1,504,105 3,608,237 7,116,590 17,997,224
5,000,000
- - 2,669,393 7,669,393
24,015
307,421 403,813 - 735,249
8,404,642
692,585
5,024,015
307,421 403,813 2,669,393 8,404,642
5,025,707
92,288
10,792,307
1,811,526 4,012,050 9,785,983 26,401,866
5,025,707
92,288
- 2,688,713
7,806,708
8,404,642
692,585
1,411,817
3,608,237
5,025,707
92,288
- 2,688,713
7,806,708
50,000 - - - 50,000
50,000 - - - 50,000
5,075,707 92,288 - 2,688,713 7,856,708
5,024,015
307,421
403,813
2,669,393
8,404,642
692,585
1,411,817
3,608,237
4,427,877
10,140,516
$ 5,716,600 $
1,719,238 $
4,012,050 $
7,097,270 $
18,545,158
128
City of Santa Clarita
Combining Statement of Revenues, Expenses and Changes in Net Assets
Internal Service Funds
For the Year Ended June 30, 2010
OPERATING REVENUES:
Charges for services
Total operating revenues
OPERATING EXPENSES:
Services and supplies
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Investment income
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS:
Transfers in
Total other financing sources (uses)
CHANGE IN NET ASSETS
NET ASSETS:
Beginning of year
End of year
Public
Computer Vehicle Facilities
Self -Insurance Replacement Replacement Replacement
Total
$ 1,654,360 $
416,351 $
335,600 $
- $ 2,406,311
5,327,668
258,808
1,549,964
533,935
178,044
1,654,360
416,351
335,600
- 21406,311
1,543,262
6,702
377,957
155,978
81,916
96,128
3,324,533
-
5,327,668
258,808
1,549,964
533,935
178,044
3,324533
5,586,476
104,396
(117,584)
157,556
(3,324,533)
(3,180,165)
118,654
40,071
115,398
200,762
474,885
118,654
40,071
115,398
200,762
474,885
223,050
(77513)
272,954
(3,123,771)
(2,705,280)
1,000,000 - - 1,500,000 2,500,000
1,000,000 - - 1500,000 2,500,000
1,223,050 (77513) 272,954 (1,623,771) (205,280)
4,493,550
1,796,751
3,739,096
8,721,041
18,750,438
$ 5,716,600 $
1,719,238 $
4,012,050 $
7,097,270 $
18,545,158
129
City of Santa Clarita
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2010
Public
Computer Vehicle Facilities
Self -Insurance Replacement Replacement Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided
$ 1,655,387 $
416,351 $
335,600
$ - $
2,407,338
Payments to suppliers
2,909,963
(403,944)
(81,916)
(1,307,270)
1,116,833
Net cash provided by (used for) operating activities
4,565,350
12,407
253,684
(1,307,270)
3,524,171
17,562
307,480
(2,272,772)
(1,288,461)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
3,639,257
1,474,500
3,271,866
9,332,390
17,718,013
Cash received from other funds
974,886
-
-
1,500,000
2,474,886
Net cash provided by (used for)
noncapital financing activities
974,886
-
-
1,500,000
2,474,886
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (5,000,000) (36,651) (63,282) (2,669,393) (7,769,326)
Net cash provided (used for) by capital
and related financing activities (5,000,000) (36,651) (63,282) (2,669,393) (7,769,326)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
119,033
41,806
117,078
203,891
481,808
Net cash provided (used for) by investing activities
119,033
41,806
117,078
203,891
481,808
4,460,954
129,991
96,128 2,017,263
6,704,336
Net increase (decrease) in cash and cash equivalents
659,269
17,562
307,480
(2,272,772)
(1,288,461)
CASH AND CASH EQUIVALENTS:
Beginning of year
3,639,257
1,474,500
3,271,866
9,332,390
17,718,013
End of year
$ 4,298,526
$ 1,492,062
$ 3,579,346
$ 7,059,618
$ 16,429,552
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income to (loss)
to net cash provided by (used for) operating activities:
Depreciation expense
Change in assets and liabilities:
(Increase) decrease in accounts receivable
Increase (decrease) in prepaid expenses
Increase (decrease) in account payable and accrued liabilities
Total adjustments
Net cash provided (used) by operating activities
$ 104,396 $ (117,584) $ 157,556 $ (3,324,533) $ (3,180,165)
6,702 155,978 %,128 - 258,808
1,027
-
- -
1,027
(542,541)
-
- -
(542,541)
4,995,766
(25,987)
- 2,017,263
6,987,042
4,460,954
129,991
96,128 2,017,263
6,704,336
$ 4,565,350 $
12,407 $
253,684 $ (1,307,270) $
3,524,171
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
$
106,667
$
82,817
$
92,903
$
282,387
Cash and investments with fiscal agent
63,900
60,225
1,669,419
1,793,544
Receivables:
Accounts
5,729
6,615
-
12,344
Interest
861
668
693
2,222
Total assets
$
177,157
$
150,325
5
1,763,015
$
2,090,497
LIABILITIES
Accounts payable and accrued liabilities
$
104
$
9,314
$
-
$
9,418
Due to other funds
-
300
-
300
Due to bondholders
177,053
140,711
1,763,015
2,080,779
Total liabilities
$
177,157
$
150,325
5
1,763,015
$
2,090,497
132
City of Santa Clarita
Schedule of Changes in Fiduciary Assets and Liabilities
All Agency Funds
For the Year Ended June 30, 2010
133
Balance at
Balance at
July 1, 2009
Additions
Deletions
June 30, 2010
ASSESSMENT DISTRICT NO. 92-2
ASSETS
Cash and investments
$
105,211
$
1,456
$
-
$
106,667
Cash and investments with fiscal agent
63,908
-
8
63,900
Receivables:
Accounts
1,643
4,086
-
5,729
Interest
983
-
122
861
Total assets
$
171,745
$
5,542
$
130
$
177,157
LIABILITIES
Accounts payable and accrued liabilities
$
960
$
-
$
856
$
104
Due to other funds
418
-
418
-
Due to bondholders
170,367
6,686
-
177,053
Total liabilities
$
171,745
$
6,686
$
1,274
$
177,157
ASSESSMENT DISTRICT NO. 99-1
ASSETS
Cash and investments
$
84,519
$
-
$
1,702
$
82,817
Cash and investments with fiscal agent
60,228
-
3
60,225
Receivables:
Accounts
861
5,754
-
6,615
Interest
790
-
122
668
Total assets
$
146,398
$
5,754
$
1,827
$
150,325
LIABILITIES
Accounts payable and accrued liabilities
$
934
$
8,380
$
-
$
9,314
Due to other funds
336
-
36
300
Due to bondholders
145,128
-
4,417
140,711
Total liabilities
$
146,398
$
8,380
5
4,453
$
150,325
133
City of Santa Clarita
Schedule of Changes in Fiduciary Assets and Liabilities
All Agency Funds
For the Year Ended June 30, 2010
TOTAL - ALL AGENCY FUNDS
Balance at
Balance at
ASSETS
July 1, 2009
Additions
Deletions
June 30, 2010
COMMUNITY FACILITIES
$
227,747
$
56,342
$
1,702
$
282,387
DISTRICT NO. 2002-1
1,799,564
-
6,020
1,793,544
ASSETS
Cash and investments
$
38,017
$
54,886
$
-
$
92,903
Cash and investments with fiscal agent
1,675;428
-
6,009
1,669,419
Receivables:
$
2,031,944
$
66,319
S
7,966
$
2,090,497
Interest
356
337
-
693
Total assets
$
1,713,801
$
55,223
$
6,009
$
1,763,015
LIABILITIES
754
311
454
611
Accounts payable and accrued liabilities
$
151
$
-
$
151
$
-
Due to other funds
$
-
$
311
$
-
$
311
Due to bondholders
1,713,650
49,054
-
1,762,704
Total liabilities
$
1,713,801
$
49,365
$
151
$
1,763,015
TOTAL - ALL AGENCY FUNDS
ASSETS
Cash and investments
$
227,747
$
56,342
$
1,702
$
282,387
Cash and investments with fiscal agent
1,799,564
-
6,020
1,793,544
Receivables:
Accounts
2,504
9,840
-
12,344
Interest
2,129
337
244
2,222
Total assets
$
2,031,944
$
66,319
S
7,966
$
2,090,497
LIABILITIES
Accounts payable and accrued liabilities
$
2,045
$
8,380
$
1,007
$
9,418
Due to other funds
754
311
454
611
Due to bondholders
2,029,145
55,740
4,417
2,080,468
Total liabilities
$
2,031,944
$
64,431
$
5,878
$
2,090,497
134
REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS
135
This page intentionally left blank.
136
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
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, 2010, and have issued our report thereon dated
January 28, 2011. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect and
correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies,
in internal control, such that there is a reasonable possibility that a material misstatement of the City's
financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
w ..c-lcpa.com
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly we do not express such an opinion. The
results of our tests disclosed no instance of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of the City Council, management, federal
awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone
other than these specified parties.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
Irvine, California
January 28, 2011
138
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 the City's 141-146
current financial performance by placing it in historical perspective.
Revenue Capacity
These tables contain information that may help in assessing the viability of the 148-159
City's most significant revenue sources, the property and sales taxes.
Debt Capacity
These tables present information that may assist the reader in analyzing the 160-166
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 reader 167-168
understand the environment within which the City's financial activities take place.
Operating Information
These tables contain service and infrastructure indicators that can inform one's 169-171
understanding how the information in the City's financial statements relate to the
services the City provides and the activities it performs.
Key Data and Ratios Ranking
These tables present various municipalities within the State of California and are
ranked in order using key data and ratios. The key data and ratios are essential
operating indicators used to determine a municipality's overall financial health
and credit worthiness.
139
172-174
140
City of Santa Clarita
Net Assets by Component (1)
Last Six Fiscal Years Ended June 30, 2010
(accrual basis of accounting)
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
141
FISCAL YEAR
05-06
09-10
08-09
07-08
06-07
As Restated
04-05
Governmental Activities
Investment in capital assets,
net of related debt
$
657,644,168
$
629,621,722
$
672,306,820
$
661,210,117
$
614,300,517
$
160,829,971
Restricted for:
Capital Projects
4,769,573
4,769,573
45,993,804
18,134,924
32,030,928
14,530,809
Debt Service
-
-
632,680
-
174,028
347
Specific Projects and Programs
85,895,468
92,894,739
61,018,399
34,441,539
30,547,345
27,009,644
Total Restricted
90,665,041
97,664,312
107,644,883
52,576,463
62,752,301
41,540,800
Unrestricted
63,218,255
96,469,866
66,249,901
87,737,817
71,001,423
53,357,322
Total governmental activities net assets
$
811,527,464
$
823,755,900
$
846,201,604
$
801,524,397
$
748,054,241
$
255,728,093
Business -type Activities
Investment in capital assets,
net of related debt
$
67,911,725
$
66,963,851
$
63,526,242
$
62,246,621
$
63,741,429
$
57,378,860
Restricted for:
Debt Service
-
-
-
-
-
-
Unrestricted
(176,196)
3,118,092
2,957,611
1,553,088
(406,224)
(890,648)
Total business -type activities net assets
$
67,735,529
$
70,081,943
$
66,483,853
$
63,799,709
$
63,335,205
$
56,488,212
Primary Government
Investment in capital assets,
net of related debt
725,555,893
696,585,573
735,833,062
723,456,738
678,041,946
218,208,831
Restricted
90,665,041
97,664,312
107,644,883
52,576,463
62,752,301
41,540,800
Unrestricted
63,042,059
99,587,958
69,207,512
89,290,905
70,595,199
52,466,674
Total Primary Government Net Assets
$
879,262,993
$
893,837,843
$
912,685,457
$
865,324,106
$
811,389,446
$
312,216,305
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
141
City of Santa Clarita
Changes in Net Assets
Last Six Fiscal Years Ended June 30, 2010 (1)
(accrual basis of accounting)
Expenses
Governmental Activities
General government
Public safety
Public works
Parks and recreation
Community development
Unallocated infrastructure depreciation
Interest on long-term debt
Total governmental activites expenses:
Business -type Activities
Transit
Total business -type activities expenses:
Total primary government expenses:
Program Revenues
Governmental Activities
Charges for services:
General government
Public safety
Public works
Parks and recreation
Community development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues:
Business -type Activities
Charges for services:
Transit
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues:
Total primary government revenues:
FISCAL YEAR
I,5I 1_37 1I I
$ 32,116,335 $ 32,279,630 $ 27,488,731 $ 26,029,070 $ 24,225,414 $ 9,930,958
17,912,704
17,489,870
16,482,917
14,398,408
13,821,626
12,437,170
26,758,527
48,514,645
30,549,888
19,273,980
6,417,841
11,754,949
27,835,763
32,747,618
21,817,251
20,573,077
20,988,533
17,637,475
13,831,341
9,761,681
9,257,881
8,985,449
16,939,976
22,371,678
15,545,626
14,405,047
13,128,617
12,920,310
1,268,939
701,261
5,476,918
5,725,201
3,127,998
2,087,949
1,669,701
1,560,223
139,477,214
160,923,692
121,853,283
104,268,243
85,332,030
76,393,714
23,348,708
22,299,379
21,506,317
18,315,106
16,508,457
15,239,173
23,348,708
22,299,379
21,506,317
18,315,106
16,508,457
15,239,173
$ 162,825,922
$ 183,223,071
$ 143,359,600
$ 122583,349
$ 101,840,487 $
91,632,887
3,956,933
3,849,699
3,875,539
3,895,422
3,794,662
3,874,109
$ 396,651 $
621,624 $
2,737,355 $
302,075
$ 186,171 $
377,202
2,194,038
1,898,022
2,291,100
2,131,060
2,032,652
1,921,796
3,162,052
260,524
355,817
3,575,546
2,512,093
2,423,865
3,956,933
3,849,699
3,875,539
3,895,422
3,794,662
3,874,109
15,937,913
35,138,334
26,341,684
20,182,722
19,068,982
20,127,873
16,224,269
25,079,906
22,600,793
26,641,145
23,465,852
21,301,215
15,249,634
23,636,779
39,003,536
24,770,306
60,971,404
34,503,830
57,121,490
90,484,888
97,205,824
81,498,276
112,031,816
84,529,890
3,181,614 3,299,263 3,216,239 5,827,778 4,950,584 5,224,575
10,260,579 13,653,177 11,876,720 12,616,641 3,351,941 15,834,845
- - 617,421 750,200 - -
13,442,193 16,952,440 15,710,380 19,194,619 8,302,525 21,059,420
$ 70,563,683 $ 107,437,328 $ 112,916,204 $ 100,692,895 $ 120,334,341 $ 105,589,310
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
142
City of Santa Clarita
Changes in Net Assets
Last Six Fiscal Years Ended June 30, 2010 (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
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
09-10 08-09 07-08 06-07 ILII 1 04-05
$ (82,355,724) $ (70,438,804) $ (24,647,459) $ (22,769,967) $ 26,699,786 $ 8,136,176
(9,906,515) (5,346,939) (5,795,937) 879,513 (8,205,932) 5,820,247
$ (92,262,239) $ (75,785,743) $ (30,443,396) $ (21,890,454) $ 18,493,854 $ 13,956,423
$ 24,511,238 $ 27,751,506 $ 29,076,388 $ 23,790,825 $ 22,204,192 $ 22,674,470
25,126,278
27,212,480
24,482,930
27,891,202
23,106,806
9,023,363
6,407,923
6,704,074
6,028,903
6,248,912
5,560,153
5,314,454
4,564,687
4,816,638
836,824
1,073,774
1,544,534
1,611,216
2,050,857
2,260,708
2,433,651
1,804,923
1,824,394
1,632,137
-
1,015,413
-
-
603,990
10,224,572
7,383,175
6,215,803
8,490,865
8,156,017
6,965,521
7,328,638
896,708
-
1,252,281
1,862,901
223,241
872,475
4,871,133
6,020,940
4566,884
4,970,193
1,891,292
1,663,699
(7,477,547)
(8,006,128)
(8,431,120)
441,376
(12,054,795)
(13,702591)
68,334,452
73,991,434
68,737,606
76,240,123
51,869,328
46,642,433
-
-
-
-
883,615
93,334
82,554
48,961
48,961
26,367
1,050
4,538
7,477,547
8,006,128
8,431,120
(441,376)
12,054,795
13,702,591
7,560,101
8,055,089
8,480,081
(415,009)
12,939,460
13,800,463
$ 75,894,553
$ 82,046,523
$ 77,217,687
$ 75,825,114 $
64,808,788
$ 60,442,896
$ (14,021,272) $
3,552,630
$ 44,090,147
$ 53,470,156
$ 78,569,114
$ 54,778,609
(2,346,414)
2,708,150
2,684,144
464,504
4,733,528
19,620,710
$ (16,367,686) $
6,260,780
$ 46,774,291
$ 53,934,660
$ 83,302,642
$ 74,399,319
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
143
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2010
(modified accrual basis of accounting)
All Other Governmental Funds
Reserved
$ 51,195,454 $
FISCAL YEAR
51,972,970 $
48,303,588
Unreserved:
09-10
08-09
07-08
06-07
General Fund
2,109,198
(7,048,095)
28,377,796
3,827,570
Reserved
$ 19,546,015 $
32,617,139 $
34,920,547 $
34,699,034
Unreserved
58,211,508
41,674,470
31,153,879
28,500,824
Total general fund
$ 77,757,523 $
74,291,609 $
66,074,426 $
63,199,858
All Other Governmental Funds
Reserved
$ 51,195,454 $
70,667,494 $
51,972,970 $
48,303,588
Unreserved:
Special revenue funds
2,109,198
(7,048,095)
28,377,796
3,827,570
Debt service fund
(24,048,962)
(17,004,471)
(15,873,835)
(10,461,382)
Capital projects fund
33,725,531
34,502,270
38,050,255
4,592,332
Total all other governmental funds
$ 62,981,221 $
81,117,198 $
102,527,186 $
36,151,718
FUND BALANCES
Fiscal Year Ended June 30, 2010
All Other
Governmental Funds
44.75%
■ General Fund
55.25%
Note: (1) Balance as restated, see Notes to Basic Financial Statements #16B.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
1
FISCAL YEAR
05-06 "
As Restated 04-05 03-04 02-03 01-02 00-01
$ 20,786,040 $ 15,638,513 $ 12,042,182 $ 14,034,615 $ 21,368,003 $ 16,330,098
18,232,779 30,780,939 23,109,773 12,927,211 3,168,903 12,209,902
$ 39,018,819 $
46,419,452 $
35,151,955 $
26,961,826 S
24,536,906 S
28,540,000
06.07
07-08
08-09
09-10
$ 80,399,389 $
30,388,825 $
41,563,581 $
9,203,674 $
10,852,416 $
8,426,033
(7,159,062)
2,843,589
(867,508)
30,014,266
34,078,558
30,758,147
(4,743,697)
(4,402,225)
(3,944,409)
(4,082,126)
(4,066,749)
-
(249,111)
(698,632)
(100,527)
(196,889)
437,307
228,777
$ 68,247,519 $
28,131,557 $
36,651,137 $
34,938,925 $
41,301,532 $
39,412,957
,�v
100
80
60
4
c 0
20
0
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
$102.5
$60.33 .9
$41.30 36.65 $ .26
$34.93 .13
00.01
01-02
02.03
03-04
04-05
0546
06.07
07-08
08-09
09-10
Fiscal
Year
145
City of Santa Clarita
Changes In Fund Balances Of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2010
(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
3iIIi i t � i tF:�ZQtFi
$ 80,714,829 $
87,659,599 $
88,088,786 $
70,576,755
4,093,250
3,697,218
5,256,748
4,203,933
3,053,363
15,763,070
22,290,808
6,747,767
5,485,925
10,749,728
8,287,441
7,926,763
33,881,145
28,882,884
24,247,611
37,300,213
1,936,318
1,759,371
2,121,570
1,918,954
10,812,521
8,375,771
9,931,041
13,463,673
7,234,923
5,077,400
3,368,879
4,356,961
147,212,274 161,965,041 163592,884 146,495,019
27,951,510
27,250,056
25,965,196
23,411,750
17,862,129
17,439,295
16,342,979
14,347,833
20,594,575
42,937,168
25,977,763
19,511,097
20,048,430
20,126,412
20,156,343
18,943,146
10,849,942
7,095,386
7,583,236
9,051,652
46,183,268
41,826,511
44,906,802
57,926,955
2,611,372
2,072,341
1,927,198
2,374,870
5,411,152
5,279,549
4,632,979
2,298,974
151,512,378
164,026,718
147,492,496
147,866,277
(4,300,104)
(2,061,677)
16,100,388
(1,371,258)
- - 13,894,752
-
-
54,235,000
-
-
-
(226,682)
-
18,953,115
12,150,426
43,112,541
27,468,089
(28,930,662)
(23,281,554)
(54,668,661)
(29,881,193)
(9,977,547)
(11,131,128)
42,452,198
11,481,648
(14,277,651)
(13,192,805)
58,552,586
10,110,390
155,016,393
168,61,612
110,049,026
99,351,576
S 140,738,744 S 155,408,807 5 168,601,612 $ 109,461,966
Debt service as percentage of non capital expenditures 6.93% 5.73% 5.87",6 4.95%
146
FISCAL YEAR
3QiZ�W. i i � ilk�ZiDY�i➢"LI
$ 66,164,485 $
53,763,779 $
43,940,454 $
39,813,089 $
35,589,227 $
34,053,282
6,907,826
5,127,705
5,303,309
3,512,857
11,264,808
2,759,637
28,028,933
11,963,054
7,570,352
7,857,087
17,016,274
16,295,503
2,881,133
3,148,731
919,858
3,788,121
4,165,144
6,303,050
38526,364
33,089,887
36,119,851
31,157,062
30,209,371
30,133,734
1,904,273
1,803,686
1,051,371
1,041,945
1,008,466
972,443
13,081,649
13,339,462
12580,933
18,095,424
17,089,401
15,489,302
12,651,674
2,408,463
3,767,800
2,309,846
1,948,808
1,298,924
170,146,337 124,644,767 111,253,928 107,575,431 107,026,691 107,305,875
24,668,150
11,217,783
12,136,244
9,282,089
9,778,478
8,768,573
13,658,723
12,429,192
12,102,441
12,124,427
11,264,808
11,386,290
6,802,081
8,901,359
8,692,908
8,823,785
8,112,935
7,450,660
17,376,609
15,964,949
14,226,090
11,546,673
10,492,037
9,052,687
17,164505
22,531,795
21,039,274
23,900,882
16,450,228
13,566,023
49,435,744
35,096,683
19,251,357
33,179578
46,917,311
43,364,800
1,367,359
2,060,319
4,332,159
1,496,087
533,279
176,061
2,878,536
1,570,581
1,760,134
1,958,388
1,598,807
1,547,751
133,351,707
109,772,661
93,840,607
102,311,909
105,147,883
95,312,845
36,794,630
14,872,106
17,413,321
5,263,522
1,878,808
11,993,030
-
-
-
1,558,097
4,400,000
-
17,700,000
-
-
1,558,097
4,400,000
-
(17,225,304)
-
2,590,955
-
-
7,865,612
8,157,999
8,278,692
7,662,207
9,550,514
2,989,329
(19,409,716)
(20,282,188)
(18,380,627)
(18,421,513)
(18,120,682)
(11,591,270)
(11,069,408)
(12,124,189)
(7,510,980)
(7,643,112)
229,832
(8,601,941)
25,725,222
2,747,917
9,902,341
(2,379,590)
2,108,640
3,391,089
74,551,009
71,803,092
61,900,751
65,838,438
64,722,707
61,331,618
5 100,276,231 S
74,551,009
$
71,803,092 S
63,458,848 S
66,831,347 S
64,722,707
5.04%
4.73%
8.24%
4.21%
3.66%
3.32%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
147
City of Santa Clarita
Assessed Valuation (1) and Actual Value of Taxable Property
Last Ten Fiscal Years
STATE ASSESSED LOCALLY ASSESSED
2000-01
SECURED -UTILITY
298,757
SECURED
3,431,012
Fiscal
IMPROVE- PERSONAL
IMPROVE-
PERSONAL
OTHER
Year
LAND MENTS PROPERTY TOTAL
LAND MENTS
PROPERTY
EXEMPTIONS TOTAL
2000-01
2,961,227
298,757
171,028
3,431,012
3,945,586,755
61169,813,280
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
61540,398,513
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
71042,138,889
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
7,688524,882
79,538536
(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
2098,608
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
104,509,189
(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
2008-09
1,750,395
2,264,780
-
4,015,175
9,416,163,697
11,115,41,327
105,296,175
(323,630,904)
20,313,270,595
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2010
PERSONAL
PROPERTY
3.10%
iq
■ L42AN2D
25,000
20,000
15,000
N
C
O
t
— 10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
00.01 01-02 02-03 03.04 04-05 05-06 06-07 07-08 08-09 09-10
Fiscal Year
(2) Direct Rate includes Redevelopment Agency areas.
149
LOCALLY ASSESSED
TOTALS
HOME -
UNSECURED
BEFORE
TAXABLE
%
TOTAL
OWNER
IMPROVE-
PERSONAL
OTHER
OTHER
ASSESSED
INCA.
DIRECT
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
EXEMPTIONS
VALUE
(DECK.)
RATE (2)
TAX RELIEF
240,385,121
369,315,436
(87,800)
609,612,757
10,820,315,726
10,665,122,146
0.05824%
199,566,151
273,022,487
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
(7,299,585)
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)
790,596511
21,740,884,855
21,493597,137
13.63%
0.08327%
220,192568
359,543,253
600,420,921
(15,127,698)
944,836,476
21,600,880,848
21,262,122,246
-1.08%
0.08313%
224,731598
346,874,191
553,829,644
(13,331,377)
887,372458
21,457,647,247
21,113,942,935
-0.70%
223,277,279
25,000
20,000
15,000
N
C
O
t
— 10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
00.01 01-02 02-03 03.04 04-05 05-06 06-07 07-08 08-09 09-10
Fiscal Year
(2) Direct Rate includes Redevelopment Agency areas.
149
City of Santa Clarita
Redevelopment Agency (')
Assessed Valuation (2) and Actual Value of Taxable Property
Last Ten Fiscal Years
STATE ASSESSED LOCALLY ASSESSED
2000-01
SECURED (UTILITY)
32,692
SECURED
94,951
FISCAL
IMPROVE- PERSONAL
IMPROVE-
PERSONAL
OTHER
YEAR
LAND MENTS PROPERTY TOTAL
LAND MENTS
PROPERTY
EXEMPTIONS TOTAL
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
2009-10
343,043,150
214,695,279
1,775,246
(3,779,814)
555,733,861
SECURED ASSESSED VALUATION
(before other exemptions)
Fiscal Year 2009-10 r PERSONAL
PROPERTY
0.32%
IMPROVEMENTS LAND
38.37% 61.31%
-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.
-Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
150
UNSECURED ASSESSED VALUATION
(before other Exemption)
Fiscal Year 2009-10
151
LOCALLY ASSESSED
TOTALS
HOME -
UNSECURED
TOTALS
TAXABLE
OWNER
IMPROVE-
PERSONAL
OTHER
BEFORE
ASSESSED
VALUE
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
BASEYEAR
BASEYEAR
VALUE
GROWTH
TAX RELIEF
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
48,299,529
(217,300)
76,286,806
615,064,595
(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 2009-10
151
City of Santa Clarita
Assessed Value- Taxable Property
Last Ten Fiscal Years
FISCAL YEAR
CATEGORY
09-10
08-09
07-08
06-07
05-06
Residential
$ 15,093,632,637 $
16,491,425,500 $
16,165,919,271 $
13,962,275,972 $
12,569,640,999
Commercial
2,729,669,423
2,541,908,257
2,081,576,763
1,836,340,797
1,588,835,810
Industrial
1,451,053;867
1,420,480,569
1,293,080,539
1,148,469,489
98Q395,598
Irrigated
3,630,743
3,559,558
3,489,768
29,374,674
28,272,540
Dry farm
-
49,088,244
48,512,253
Recreational
121,511,353
119,459,165
114,868,032
90,435,287
94,916,719
Institutional
125,868,861
136,418,924
130,907,129
94,705,673
91,312,643
Government
206,850
201,629
197,676
194,922
190,000
Miscellaneous
843,038
810,312
795,449
779,859
Vacant land
636,182,476
664,562,300
664,792,342
656,660,955
554551,820
SBE Nonunitary
3,573,175
1,073,171
8,243,171
10,666,005
13,172,185
Possessory Int.
150,671,347
158,723,783
239,115,623
222,654,730
205,526,182
Unsecured
944,836,476
871,039,834
790,596,511
730,697,804
659,990,996
Unknown
83,525,492
103,303,882
TOTALS:
$ 21,261,680,246 $
22,408,852,690 $
21,493,597,137 $
18,915,885,493 $
16,939,401,486
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
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Fiscal Year
Source: HdL Caren & Cone, Los Angeles County Assessor 2009/10 Combined Tax Rolls.
152
®Seriest
■Series2
OSeries3
■Series4
OSeries5
$ 11,097,987,787 $
10,221,634,945 $
FISCAL YEAR
8,630,320,972 $
7,948,529,358
04-05
03-04
02-03
01-02
00-01
$ 11,097,987,787 $
10,221,634,945 $
9,373,657,630 $
8,630,320,972 $
7,948,529,358
1,258,389,787
1,132,585,601
1,043,922,879
955529,671
879,942,873
833,455,573
817,508,597
735,063,812
693,214,978
660,288,367
4,351,050
3,962,743
3,933,315
5,798,245
3,871,007
45,145,241
43,542,990
29,655,961
34,074,195
38,041,655
84,727,948
94,694,674
60,212,317
46,322,531
42,015,479
80,606,769
113,908577
102,142,853
82,619,342
96,186,317
-
493,814
484,173
474,673
465,377
764,577
667,091
7,591,441
2,697,123
7,823,618
440,215,418
280,744,871
212,233,528
228,265,224
260536,412
16,768,755
49,476,597
3,238,345
3,273,698
3,431,012
201,323,600
153,302,360
109,259,714
75,116,757
73,906,800
641526,760
664,760,834
703,858,024
679,574,673
609,612,757
36,994,610
29,585,002
14,846,193
30,278,643
40,471,414
$ 14,742,257,875 $ 13,606,868,696 $ 12,400,100,185 $ 11,467,560,725 $ 10,665,122,446
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.
153
City of Santa Clarita
Assessed Value- Use Category Summary
Fiscal Year 2009-10
NET
ASSESSED TAXABLE
CATEGORY PARCELS VALUE PERCENT EXEMPTIONS VALUE PERCENT
Residential
48,822 $
15,141,999,079
70.10% $
(1,349,426,421) $
16,491,425,500
73.591%
Commercial
909
2,808,108,263
13.00%
266,200,006
2,541,908,257
11.343%
Industrial
667
1,452,630,919
6.73%
32,150,350
1,420,480,569
6.339%
Irrigated
6
3,630,743
0.02%
71,185
3,559,558
0.016%
Recreational
34
124,316,001
0.58%
4,856,836
119,459,165
0.533%
Institutional
89
307,868,318
1.43%
171,449,394
136,418,924
0.609%
Government
5
206,850
0.001%
5,221
201,629
0.001%
Miscellaneous
10
843,038
0.004%
16,525
826,513
0.004%
Vacant land
3,444
645,978,544
2.99%
(18,583,756)
664,562,300
2.966%
SBE Nommitary
(12)
3,573,175
0.02%
2,500,004
1,073,171
0.005%
Possessory Int.
(2,127)
151,319,744
0.70%
(7,404,039)
158,723,783
0.708%
Unsecured
(7,016)
959,964,174
4.44%
88,924,340
871,039,834
3.887%
Unknown
TOTALS:
53,986 $ 21,600,438,848
ASSESSED VALUE by USE
CATEGORY
Fiscal Year 2009-10
O Industrial
6.73%
G Commercial
13.00%
■ All Others
10.17%
Residential
70.10%
100.00% $ (809,240,355) $ 22,409,679,203 100.000%
NET TAXABLE VALUE by USE
CATEGORY
Fiscal Year 2009-10
®Industrial
O Commercial
` I 6.34% N All Others
Ih\
11.34% 8.73%
Residential
73.59%
Source: HdL Coren & Cone, Los Angeles County Assessor 2009/10 Combined Tax Rolls.
154
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
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
2009-10
1.000000
0.000000
0.060750
0.089815
0.000000
0.000000
1.150565
1.200000
1.000000
0.800000
0.600000
0.400000
0.200000
0.000000
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2009-10
LA COUNTY
FLOOD CONTROL
Source: HdL Coren & Cone, Los Angeles County Assessor 2009-10 Tax Rate Table
155
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
and overlapping rates for the largest
Of 1%
plus applicable
0.00801
Roll Year per Prop. 13 Debt Rates Total City Rates
voter approved debt
weighted average of all individual direct
2009-10 0.099110 0.000000 0.099110
1.06075%
0.07432%
Agency
City of Santa Clarita Tax District 1 (249.01)
Castaic Lake Water Agency (302.01)
Children's Institutional Tuition Fund (400.21)
Consolidated Fire Protection District of LA Co. (007.30)
County School Service Fund Newhall (581.06)
County School Service Hart William S. Hart (757.06)
County School Services (400.15)
Development Center Handicapped Minor Newhall (581.07)
Educational Augmentation Fund Impound (400.01)
Educational Revenue Augmentation Fund(ERAF) (400.00)
Greater LA Co. Vector Control (061.80)
LA County Library (003.01)
LA County Fire - Ffw (007.31)
LA County Flood Control Improvement District (030.10)
LA County Flood Control Maintenance (030.70)
LA County General (001.05)
LA County Accum Cap Outlay (001.20)
Newhall Scholl District (581.01)
Santa Clarita Community College (814.04)
Santa Clarita Street Light Maintenance #2 (249.32)
Santa Clarita Valley Sanitation Dist. La Co.
Valencia Areawide Landscape T1A S.C.
William S. Hart Elementary School Fund (75207)
William S. Hart Union High (757.02)
Total Prop. 13 Rate:
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 2001 Ser. B (757.52)
William S. Hart Unified Debt Services 2008 Ser. A (757.52)
Total Tax Rate
Source: HdL Coren & Cone, Los Angeles County Assessor 2009/10 Tax Rate Table
156
2009-10
0.05730
Notes: General fund tax rates are
0.05780
representative and based upon the direct
0.00283
and overlapping rates for the largest
0.16340
General Fund tax rates area (TRA) by net
0.00801
taxable value. Total Direct Rate is the
0.00034
weighted average of all individual direct
0.00143
rates applied by the government preparing
0.00088
the statistical section information.
0.13380
The percentages presented in the columns
0.08260
above do not sum across rows. RDA rate
0.00032
is based on the largest RDA tax rate area
0.02360
(TRA) and includes only rate(s) from
0.00323
indebtedness adopted prior to 1989 per
0.00176
California State statute. RDA direct and
0.00996
overlapping rates are applied only to the
0.14050
incremental property values. In 1978,
0.00009
California voters passed Proposition 13
0.08350
which set the property tax at a 1.00% fixed
0.03740
amount. This 1.00% is shared by all the
0.02250
taxing agencies for which the subject
0.02500
property resides within. In addition to
0.01924
1.00% fixed amount, property owners are
0.04290
charged taxes as a percentage of assessed
0.08150
property values for the payment of any
1.00000
voter approved bonds.
0.06075
0.01103
0.01943
0.01435
0.00648
0.01183
0.00420
0.00283
0.00062
0.01507
0.00399
0.15057
City of Santa Clarita
Principal Property Taxpayers
Current Fiscal Year and Two Fiscal Years Ago
Valencia Town Center
VTC Business Center
EQR Valencia LLC
Casden Santa Clarita LLC
C -Native Exchange I LLC Time Warne
Walmart Real Estate Business Trust
Rreef America Reit R Corporation
Prado Town Center West LLC
Gateway Village
PK I Granary Square LP
EQR-WellFan 2008
Total
All Others
Total Assessed Valuation
34 $
FISCAL YEAR 2009-10
1.43 %
FISCAL YEAR 2008-09
152,997,448
0.72
PERCENT of
94,981,666
0.45
PERCENT of
Number
TOTAL
TOTAL CITY
Number
TOTAL
TOTAL CITY
of
ASSESSED
ASSESSED
of
ASSESSED
ASSESSED
OWNER/FAXPAYER Parcels
VALUE
VALUE
Parcels
VALUE
VALUE
Valencia Town Center
VTC Business Center
EQR Valencia LLC
Casden Santa Clarita LLC
C -Native Exchange I LLC Time Warne
Walmart Real Estate Business Trust
Rreef America Reit R Corporation
Prado Town Center West LLC
Gateway Village
PK I Granary Square LP
EQR-WellFan 2008
Total
All Others
Total Assessed Valuation
34 $
305,092,765
1.43 %
10
152,997,448
0.72
218
94,981,666
0.45
25
81,182,347
0.38
12
79,450,107
0.37
9
76,315,398
0.36
2
75,547,858
0.36
264
72,547,938
0.34
1
62,100,000
0.29
3
60,740,698
0.29
578 1,060,956,225 4.99 %
31 $
283,259,367
1.26 %
10
157,307514
0.70
218
93,110,745
0.42
25
79,590,546
0.36
12
78,960,993
0.35
9
75,424,767
0.34
2
74,150,497
0.33
264
71,125,630
0.32
1
67,743,300
0.30
3 70,617,530 0.32
1,051,290,889 4.69 %
20,200,724,021 95.01 21,358,388,314 95.31
$ 21,261,680,246 100.00 % $ 22,409,679,203 100.00 %
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Prior years' information
are not available at this time.
Source: HdL Coren & Cone, LA County Assessor 2009/10 Combined Tax Rolls
157
158
City of Santa Clarita
Property Tax Levies, Tax Collections, and Delinquency
Last Ten Fiscal Years
FISCAL
YEAR
TAXES
7,188,685
DELINQUENT
PERCENT
LEVIED
COLLECTIONS
AMOUNT
DELINQUENCY
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%
2009-10
14,202,626
13,711,940
490,686
3.45%
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;
NOTES:
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
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
159
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 Clartta 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 $15,525,000 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
160
GOVERNMENTAL ACTIVITIES
FISCAL
CERTIFICATES
TAX ALLOCATION
CAPITAL
YEAR
OF PARTICIPATION (1) (3)
LOANS
NOTES
BONDS (2)
BONDS (4)
(5)
LEASES
TOTAL
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
2007-08
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
2009-10
13,760,000
15,525,000
2,017,793
-
13,075,000
29,460,000
8,730,000
1,624
82,569,417
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 Clartta 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 $15,525,000 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
160
600
500
400
300
200
700
0
1 $210 $205
OUTSTANDING DEBT per CAPITA
Last Ten Fiscal Years
$176
$160
$484
00.01 01.02 02.03 03-04 04.05 05-06 06.07 07.08 08-09 09-10
Fiscal Year
161
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
- 4,656,704
4,656,704
32,578,246
0.31%
210.01
4%
- 3,897,133
3,897,133
32,440,035
0.28%
204.94
4%
- 3,088,996
3,088,996
31,634,189
0.26%
194.22
4%
- 2,236,624
2,236,624
29,048,727
0.21%
176.14
3%
- 1,919,312
1,919,312
26,671,302
0.18%
159.75
3%
- 1,586,319
1,586,319
25,037,643
0.15%
149.56
2%
- 1,236,869
1,236,869
36,146,477
0.19%
205.76
3%
- 870,149
870,149
88,087,559
0.41%
500.41
6%
- 485,304
485,304
85,675,581
0.40%
483.63
5%
- 248,304
248,304
82,817,721
0.39%
466.21
5%
600
500
400
300
200
700
0
1 $210 $205
OUTSTANDING DEBT per CAPITA
Last Ten Fiscal Years
$176
$160
$484
00.01 01.02 02.03 03-04 04.05 05-06 06.07 07.08 08-09 09-10
Fiscal Year
161
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
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Fiscal Year
Source: (1) State of California, Finance Department
162
PERCENTAGE
OUTSTANDING GENERAL BONDED
DEBT
of
TAXABLE
DEBT
FISCAL
REVENUE
CERTIFICATES of
ASSESSED
PER
YEAR
POPULATION (1)
BONDS
PARTICIPATION
TOTAL
VALUE
CAPITA
2000-01
155,124
-
22,870,000
22,870,000
0.23%
147
2001-02
158,289
-
22,675,000
22,675,000
0.21%
143
2002-03
162,875
-
21,640,000
21,640,000
0.19%
133
2003-04
164,916
-
20,375,000
20,375,000
0.16%
124
2004-05
166,958
-
19,030,000
19,030,000
0.14%
114
2005-06
167,412
-
18,410,000
18,410,000
0.12%
110
2006-07
175,676
13,893,228
16,760,000
30,653,228
0.18%
174
2007-08
176,030
13,575,000
31,315,000
44,890,000
0.24%
255
2008-09
177,150
13,330,000
30,315,000
43,645,000
0.20%
246
2009-10
177,641
13,075,000
29,285,000
42,360,000
0.20%
238
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
per CAPITA
Last Ten Fiscal Years
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Fiscal Year
Source: (1) State of California, Finance Department
162
City of Santa Clarita
Direct and Overlapping Bonded Debt
June 30, 2010
2009-10 Assessed Valuation: $21,262,122,246 (Net of Redevelopment Agency
Incremental Value of $386,027,7431
2009-10 Population:
OVERLAPPING TAX AND OVERLAPPING BONDED DEBT:
Los Angeles County Flood Control District
Santa Clarita Community College District
William S. Hart Union High School District
William S. Hart Union High School District - Community FaciGfies 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 FaciGfies 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. 23 Authority
Los Angeles County Sanitation District No. 32 Authority
Santa Clarita Community College District - Certificates of Participation
William S. Hut Union High School District - Certificates of Participation
Castaic Union School District - Certificates of Participation
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 Cladta - Certificates of Participation
Total Direct and Overlapping General Fund Debt
COMBINED GROSS TOTAL DEBT
Percent City's Share
Total Debt Applicable of Debt
06/30/2010 To City (1) 06/30/2010
$ 69,610,000
2.230 %
$ 1,552,303
146,877,013
61.809
90,783,213
250,950,872
61.800
155,087,639
2,260,000
100.000
2,260,000
715,000
100.000
715,000
680,000
100.000
680,000
14,539,945,000
0.00002
2,908
9,398,248
26.347
2,476,156
29,050,000
57.392
16,672,376
51,323,110
73.672
37,810,762
8,818,000
71.210
6,279,298
15,525,000
100.000
15,525,000
16,980,000
100.000
16,980,000
1,105,000
100.000
1,105,000
222,660,000
2.245
4,998,717
352,928,372
855,695,839
2.245 %
19,210,372
118,486,192
2.245
2,660,015
13,185,458
2.245
296,014
3,837,344
0.163
6,255
34,501,834
64.141
22,129,821
35,570,000
61.809
21,985,461
6,000,000
61.800
3,708,000
4,307,800
26.347
1,134,976
4,322,200
57.392
2480,597
29,015,000
73.672
21,375,931
28,799,058
71.210
20,507,809
432,305,375
0.00002
86
26,835,000
100.000
26,835,000
142,330,337
$ 495,258,709 (2)
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the City
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation
bonds and non -bonded capital lease obligations.
Ratios to 2009-10 Assessed Valuation Per Capita
Total Overlapping Tax and Assessment Debt................................................................... 1.66% $1,986.75
Ratios to Adjusted 2009-10 Assessed Valuation
Combined Direct Debt ($42,360,000)............................................................................ 0.20% 151.06
Combined Gross Total Debt............................... ......................... ................................ 2.37% $2,787.98
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/2010: $0
Source: HdL
163
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
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
164
FISCAL YEAR
09-10
08-09
07-08
06-07
$ 21,457,647,247 $
25%
21,600,880,848 $
25%
21,740,884,855 $
25%
19,177,131,442
25%
5,364,411,812
15%
5,400,220,212
15%
5,435,221,214
15%
4,794,282,861
15%
804,661,772
810,033,032
815,283,182
719,142,429
$ 804,661,772 $
810,033,032 $
815,283,182 $
719,142,429
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
164
FISCAL YEAR
05-06
04-05
03-04
02-03
01-02
00-01
$ 17,160,386,817 $
25%
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%
4,290,096,704
15%
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%
643,514,506
560,141,849
517,336,219
471,873,965
437,135,862
405,761,840
$ 643,514,506 $
560,141,849 $
517,336,219 $
471,873,965 $
437,135,862 $
405,761,840
0%
0%
0%
0%
0%
0%
900
800
700
600
500
400
300
200
100
0
00-0101-02 02-03 03-04 0405 05-06 06-07 07-08 08-09 09-10
FISCAL YEAR
LEGAL DEBT MARGIN
Last Ten Fiscal Years
165
City of Santa Clarita
Pledged -Revenue Coverage
Last Ten Fiscal Years
NOTE: (1) Includes Other revenues, Transfers -in, and Capital contributions
(2) Includes Transfersout and Other expenses
166
TRANSIT
LESS
NET
Fiscal
TRANSIT
OPERATING
AVAILABLE
DEBT SERVICE
Year
REVENUES (1)
EXPENSES (2)
REVENUES
Principal Interest
COVERAGE
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%
2009-10
21,179,438
23525,855
(2,346,417)
236,999
23,149
1.23%
NOTE: (1) Includes Other revenues, Transfers -in, and Capital contributions
(2) Includes Transfersout and Other expenses
166
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)
TOTAL
PERSONAL
INCOME (2)
UNEMPLOYMENT
RATE (3)
2001
155,124
2.55%
9,653,900
1.75%
30,503
303,445,287
5.70%
2002
158,289
2.04%
9,817,400
1.69%
30,828
311,367,020
6.80%
2003
162,875
2.90%
9,966,200
1.52%
31,452
322,272,131
7.00%
2004
164,916
1.25%
10,107,451
1.42%
33,179
338,209,805
6.50%
2005
166,958
1.24%
10,166,417
0.58%
35;188
357,193,633
5.30%
2006
167,412
0.27%
10,245,572
0.78%
36,917
385,732,651
4.20%
2007
177,158
5.82%
10,331,939
0.84%
39,066
402,107,608
(4)
2.70%
2008
177,045
-0.06%
10,363,850
0.31%
41,875
413,316,582
4.70%
2009
177,150
0.06%
10,393,185
0.28%
42,916
N/A
(5)
7.70%
2010
177,641
0.28%
10,441,080
0.46%
42,818
N/A
(5)
7.70%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
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.
(4) Total Personal Income not yet available for 2009 and 2010.
167
City of Santa Clarita
Principal Employers (1)
Current Fiscal Year and Three Fiscal Years Ago
2010 2007
PERCENT PERCENT
NUMBER of NUMBER of
of TOTAL of TOTAL
EMPLOYER EMPLOYEES EMPLOYMENT EMPLOYEES EMPLOYMENT
Six Flag Magic Mountain
3,800
4.70%
2,165
9.18%
Princess Cruises
2,000
2.47%
2,100
8.90%
Henry Mayo Newhall Memorial Hospital
1,200
1.48%
1,133
4.80%
Specialty Laboratories
850
1.05%
725
3.07%
H.R. Textron
716
0.88%
845
3.58%
The Master's College
780
0.96%
748
3.17%
Arvato Services
580
0.72%
586
2.48%
California Institute of Arts
525
0.65%
500
2.12%
Aerospace Dynamics
440
0.54%
420
1.78%
Fanfare Media Works
400
0.49%
407
1.73%
Total
11,291
13.95%
9,629
40.81%
All Others
69,625
86.05%
13,963
59.19%
Total employment in Santa Clarita (1)
80,916
100.000/0
23,592
100.000/0
NOTE: (1) Non-governmental employers
Source: 2010 Santa Clarita Valley - Real Estate and Economic Outlook
ICC.n
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
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
FISCAL YEAR
09-10 OS -09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01
89.75 95.75 91.75 86.00 96.00 79.00 78.00 78.00 75.00 68.50
128.00
135.50
136.50
133.50
115.00
146.00
138.00
150.00
150.50
138.00
33.00
36.00
35.00
33.00
36.00
20.00
20.00
20.00
19.00
18.00
110.50
111.50
110.50
108.00
106.00
101.00
99.00
84.00
80.00
80.00
12.00
14.00
11.00
11.00
8.00
8.00
8.00
7.00
7.00
7.00
373.25 392.75 384.75 371.50 361.00 354.00 343.00 339.00 331.50 311.50
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Fiscal Year
(1) Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
169
City of Santa Clarita
Operating Indicators
by Function
Last Ten Fiscal Years
Police
Parking citation issued (1)
5,114
4,126
5,257
4,587
FISCAL YEAR
5,960
5,040
3,893
3,674
3,322
Parking revenue collected
$ 238,478
$ 235,634
$ 288,076
$ 334,927
$ 27,257
$ 10,427
Function
09-10
08419
07-08
06-07
05-06 04-05
0304
02-03
01-02
00-01
Police
Parking citation issued (1)
5,114
4,126
5,257
4,587
6,042
5,960
5,040
3,893
3,674
3,322
Parking revenue collected
$ 238,478
$ 235,634
$ 288,076
$ 334,927
$ 27,257
$ 10,427
$ 10,324
$ 7,011
$ 6,239
$ 5,762
Public works:
Street resurfacing (miles)
33.8
14.0
15.4
15.4
16.5
12.5
7.5
6.5
6.5
6.5
Parks and Recreation:
Number of recreation classes
2,447
2,284
2,393
2,535
2,357
2,443
2469
2,267
1,929
1,874
Number of facility rentals (times)
10,239
9,801
9,767
19,645
19,435
17,739
15,005
12,765
11,505
10,245
Transit:
Number of customers served (2)
3,922,052
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
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 are within the City's boundaries.
(2) Number of customers served include those outside of the City boundaries.
Source: City of Santa amita, Administrative Services Department - Finance Division
170
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 (Joint -Jurisdiction)
Parks and recreation:
Number of parks
Community centers
Transit:
Stations
FISCAL YEAR
09-10 08-09 07-08 06-07 05-06 04-05 03-04 02-03 01-02 00-01
496
496
496
496
496
462
462
452
452
452
14,939
14,739
14,429
14,000
13,200
13,000
12,000
12,000
11,647
11,647
166
172
176
166
167
165
158
151
141
134
6
5
4
4
5
5
4
2
2
2
20
20
20
19
18 17 16 16 15 13
1
1
1
1
1 - - - - -
4 4 4 4 4 4 4 4 4 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 (762) 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
171
City of Santa Clarita
Ranking on Effective Buying Income (EBI)
Based on Household EBI, Per Capital EBI, and Total Market Value
Note: Santa Clarita Standard & Poor's credit rating = AA+, all other municipalities rated AAA.
Source: Standard & Poor's 2009 AAA Municipalities
172
Total
Household
Per Capita
Market
.Rank
City
EBI
Ra 3
ty
EBI
Rank
ity
Value
1
Saratoga
285
1
Malibu
296
1
San Jose
124,288,184
2
Manhattan Beach
225
2
Saratoga
291
2
Sunnyvale
24,725,257
3
Malibu
219
3
Manhattan Beach
290
3
Carlsbad
24,400,000
4
Lafayette
216
4
Mill Vy
287
4
Santa Clarita
21,768,416
5
San Ramon
209
5
Del Mar
285
5
Santa Monica
21,122,724
6
Yorba Linda
202
6
Beverly Hills
277
6
Palo Alto
18,922,488
7
Mill Valley
200
7
Laguna Beach
261
7
Pasadena
18,812,937
8
Del Mar
192
8
Lafayette
250
8
Beverly Hills
18,198,107
9
Palo Alto
190
9
Palo Alto
245
9
San Ramon
14,992,249
10
Mission Viejo
179
10
Santa Monica
212
10
Mountain View
14,216,170
11
Laguna Beach
173
11
San Ramon
201
11
Mission Viejo
13,246,125
12
Beverly Hills
170
12
West Hollywood
191
12
Yorba Linda
10,904,681
13
Carlsbad
164
13
Carlsbad
179
13
Manhattan Beach
10,861,361
14
Sunnyvale
164
14
Mountain View
173
14
Camarillo
9,964,062
15
Fountain Valley
163
15
Yorba Linda
168
15
Laguna Beach
9,752,455
16
Cerritos
162
16
17
18
Sunnyvale
Mission Viejo
Campbell
161
153
150
16
17
18
Malibu
Saratoga
West Hollywood
9,295,365
8,755,510
7,245,875
17 Santa Clarita 159
18 San Jose 152
19
Mountain View
151
19
Camarillo
142
19
Cerritos
6,824,297
20
Camarillo
149
20
Pasadena
132
20
Fountain Valley
6,594,781
21
Campbell
147
21
Campbell
5,983,519
21
Santa Clarita
128
22
Santa Monica
123
22
Lafayette
5,373,902
22 Fountain Valley 122
23
Pasadena
112
23
San Jose
117
23
Mill Vy
3,579,870
24
West Hollywood
101
24
Cerritos
114
24
Del Mar
2,332,913
Note: Santa Clarita Standard & Poor's credit rating = AA+, all other municipalities rated AAA.
Source: Standard & Poor's 2009 AAA Municipalities
172
City of Santa Clarita
Ranking on Per Capita Market Value
General Fund Balance %, & Unreserved Fund Balance%
Note: Santa Clarita Standard & Poor's credit rating = AA+, all other municipalities rated AAA.
Source: Standard & Poor's 2009 AAA Municipalities
173
Per Capita
Market
Gen Fund
Unreserved
city
Value
Rank`
Y
Bal %
Rank
Cite
Fund. Bal%
1
114
Malibu
681,878
1
Lafayette
176.00
1 Cerritos 235.40
2
Beverly Hills
508,284
2
Lafayette
176.00
2
Yorba Linda
132.20
3
Del Max
464,664
3
Yorba Linda
168.10
3
West Hollywood
131.30
Laguna Beach
383,764
4
West Hollywood
151.80
4
Fountain Valley
118.70
5
Palo Alto
298,617
5
Camarillo
150.90
5
Cerritos
107.10
6
Manhattan Beach
286,451
6
Mountain View
123.20
6
Malibu
105.00
7
Saratoga
271,001
7
Fountain Valley
120.00
7
Camarillo
101.40
8
Mill Vy
265,746
8
Carlsbad
119.10
8
San Ramon
101.20
9
San Ramon
244,821
9
Malibu
106.20
9
Mountain View
95.40
10
Carlsbad
235,043
10
San Ramon
103.00
10
Campbell
81.40
11
Santa Monica
233,171
11
Sunnyvale
100.70
11
Sunnyvale
75.10
12
Lafayette
215,154
12
Carlsbad
63.50
13
West Hollywood
194,714
13
Campbell
85.00
13
Saratoga
60.10
14
Mountain View
192,287
14
Beverly Hills
64.10
14
Beverly Hills
51.30
15
Sunnyvale
179,770
15
Santa Monica
62.00
15
Mission Viejo
48.40
16
Yorba Linda
161,097
16
Saratoga
60.60
16
Santa Clarity
44.56
17
Campbell
734,617
17
Mission Viejo
58.60
17
Laguna Beach
40.90
18
Camarillo
154,573
18
Laguna Beach
54.20
18
Mill Vy
33.30
19
Mission Viejo
138,003
19
San Jose
39.60
19
Pasadena
32.90
20
Cerritos
130,995
20
Pasadena
36.90
20
San Jose
32.70
21
Pasadena
126,657
21
Palo Alto
36.70
21
Manhattan Beach
30.60
22
San Jose
126,142
22
Mill Vy
35.90
22
Santa Monica
28.20
23
Manhattan Beach
34.00
23
Palo Alto
27.10
24
Fountain Valley
116,150
24
Del Mar
25.10
24
Del Mar
24.10
Note: Santa Clarita Standard & Poor's credit rating = AA+, all other municipalities rated AAA.
Source: Standard & Poor's 2009 AAA Municipalities
173
City of Santa Clarita
Ranking on Total Direct Debt, Overall Debt %,
& Overall Debt Per Capita
Note: Santa Clarita Standard & Poor's credit rating = AA+, all other municipalities rated AAA.
Source: Standard & Poor's 2009 AAA Municipalities
174
Overall
Total
Debt%
Overall
Direct Debt
Market
Debt Per
Rank
City
(Mil. $)
Rank
City A
Value
Rank
City
Capita
1
Del Mar
4,493
1
Laguna Beach
0.10
1
Laguna Beach
258
2
Laguna Beach
6,130
2
Mill Vy
0.50
2
Mill Vy
1,185
3
Saratoga
13,890
3
Del Mar
0.60
3
Mission Viejo
1,859
4
Mill Vy
15,957
4
Manhattan Beach
0.70
4
Manhattan Beach
1,960
5
Malibu
18,271
5
Mission Viejo
1.40
5
Camarillo
2,110
6
Carlsbad
18,540
6
Camarillo
1.40
6
Fountain Valley
2,264
7
West Hollywood
20,725
7
Carlsbad
1.70
7
Del Mar
2,874
8
Lafayette
26,160
8
Lafayette
1.90
8
Santa Clarita
3,064
9
Sunnyvale
44,745
9
Malibu
1.90
9
Lafayette
3,824
10
Manhattan Beach
45,120
10
Fountain Valley
2.00
10
San Jose
3,959
11
Fountain Valley
45,628
11
Palo Alto
2.00
11
Campbell
3,984
12
Campbell
46,985
12
Santa Monica
2.20
12
Carlsbad
4,092
13
Palo Alto
55,768
13
Saratoga
2.40
13
Yorba Linda
4,132
14
Mission Viejo
56,112
14
Cerritos
4,343
Santa Carlin 2.48 -
15
Mountain View
80,255
15
Sunnyvale
4,580
15 Mountain View 2.50
16
Camarillo
80,513
16
San Ramon
2.50
16
Mountain View
4,836
17
Yorba Linda
80,939
17
Campbell
2.60
17
Santa Monica
5,028
18
Santa Clarit
18
19
Yorba Linda
Sunnyvale
2.60
2.60
18
19
West Hollywood
Pasadena
5,134
5,857
19 San Ramon 103,262
20
Cerritos
182,300
20
West Hollywood
2.60
20
Palo Alto
5,976
21
Santa Monica
198,233
21
Beverly Hills
2.80
21
San Ramon
6,052
22
Beverly Hills
283,830
22
San Jose
3.10
22
Saratoga
6,520
23
Pasadena
649,776
23
Cerritos
3.30
23
Malibu
12,881
24
San Jose
1,334,232
24
Pasadena
4.60
24
Beverly Hills
14,147
Note: Santa Clarita Standard & Poor's credit rating = AA+, all other municipalities rated AAA.
Source: Standard & Poor's 2009 AAA Municipalities
174
23920 Valencia Boulevard
Suite 300
Santa Clarita, California 91355
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