HomeMy WebLinkAbout2013-01-22 - AGENDA REPORTS - CAFR AUDIT LETTER (2)Agenda Item: 8
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS City Manager Approval: ✓e+'I ,
Item to be presented by: Darren Hem3ndez
DATE: January 22, 2013
SUBJECT: JUNE 30, 2012 COMPREHENSIVE ANNUAL FINANCIAL
REPORT AND AUDIT COMMITTEE LETTER
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council approve the Comprehensive Annual Financial Report (CAFR) and Audit
Committee Letter for fiscal year ending June 30, 2012.
BACKGROUND
The City's independent audit firm, Marcum, LLP, has completed the City's annual audit for fiscal
year ending June 30, 2012. Marcum, LLP 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 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, Marcum, LLP 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, 2012.
In accordance with professional standards, an Audit Committee Letter has been prepared by
Marcum, LLP 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
FY 2011-12 Comprehensive Annual Financial Report available in the City Clerk's Reading File
Audit Committee Letter FY 2011-12 available in the City Clerk's Reading File
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MARCUM
ACCOUNTANTS ADVISORS
January 11, 2013
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
We have audited the governmental activities, the business -type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City
of Santa Clarita (City) for the year ended June 30, 2012, and have issued our report thereon dated
January 11, 2013. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards and Government Auditing Standards and
OMB Circular A-133, as well as certain information related to the planned scope and timing of our audit.
Our Resuonsibilitities under U.S. Generally Accepted Auditing Standards and Government Auditing
Standards
As stated in our engagement letter dated March 26, 2012, 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.
Our responsibility for the supplementary information accompanying the financial statements, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the financial statements as a whole and to report on whether the supplementary information is
fairly stated, in all material respects, in relation to the financial statements as a whole.
Planned Scone and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to you
M/QWM;JROuo
MEMBER
Marcum uP - 5 Park Plaza = Suite 700 „ Irvine, California 92614 Phone 949.653.9400 • Fax 949.833.3582 • marcumlllo.com
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
Page 2
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during the
fiscal year ended June 30, 2012. We noted no transactions entered into by the governmental unit during
the year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
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 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 significant difficulties in dealing with management in performing and completing
our audit.
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
Page 3
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. Please refer to the attachment included with the
management representation letter signed by management for the listing of the adjustments.
Disagreements with Management
For purposes of this letter, a disagreement with management is 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 11, 2013.
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 unit's 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.
sssss
To the Honorable Mayor, Members of City Council
and Management of the City of Santa Clarita
Santa Clarita, California
Page 4
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,
Irvine, California
January 11, 2013
Saugus
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City of SANTA CLAPITA, Califoroica
Comprehensive Annnal Financial Report
Fiscal Ywr 2011-2012
CITY OF SANTA CLARITA
(CALIFORNIA)
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2012
PREPARED BY THE DEPARTMENT OF ADMINISTRATIVE SERVICES
CITY OF SANTA CLARITA, CALIFORNIA
City of Santa Clarita
Comprehensive Annual Financial Report
For the year ended June 30, 2012
Table of Contents
Page
Letterof Transmittal.................................................................................................................................................i
GFOA Certificate of Achievement for Excellence in Financial Reporting........................................................ ix
Officials of the City of Santa Clarita.......................................................................................................................x
OrganizationChart...................................................................................................................................................xi
Mapof the City of Santa Clarita..............................................................................................................................xii
FINANCIAL SECTION
Independent Auditors' Report .........................................
Management's Discussion and Analysis (Unaudited)
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets...............................................................................................................................23
Statement of Activities and Changes in Net Assets.................................................................................24
Fund Financial Statements:
Governmental Fund Financial Statements:
BalanceSheet..........................................................................................................................................28
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets.....................................................................31
Statement of Revenues, Expenditures and
Changes in Fund Balances.............................................................................................................32
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 ....................................
Proprietary Fund Financial Statements:
Statement of Net Assets .........................
Statement of Revenues, Expenses and Changes in Fund Net Assets............
Statementof Cash Flows......................................................................................
Fiduciary Fund Financial Statements.
Statement of Net Assets ...............................
Statement of Changes in Net Assets...........
................... 34
37
W
.......43
Notes to Basic Financial Statements...............................................................................................................45
City of Santa Clarita
Comprehensive Annual Financial Report
For the year ended June 30, 2012
Table of Contents, Continued
Pace
FINANCIAL SECTION, Continued
Required Supplementary Information (Unaudited)..................................................................................85
Notesto Required Supplementary Information......................................................................................86
Budgetary Comparison Schedule:
GeneralFund..........................................................................................................................................87
Bridge and Thoroughfare Special Revenue Fund.............................................................................88
Developer Fees Special Revenue Fund...............................................................................................89
Public Library Special Revenue Fund.................................................................................................90
Landscape Maintenance District #1 Special Revenue Fund............................................................91
Defined Benefit Pension Plan.....................................................................................................................92
Other Post Employment Benef its..............................................................................................................92
Supplementary Information
Non -Major Governmental Funds:
Description of Nonmajor Governmental Funds......................................................................................94
CombiningBalance Sheet............................................................................................................................%
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................102
Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:-
ctual:Bikeway
BikewaySpecial Revenue Fund...........................................................................................................108
Gas Tax Special Revenue Fund............................................................................................................109
Proposition A Special Revenue Fund.................................................................................................110
Park Dedication Special Revenue Fund..............................................................................................111
Special Assessment Special Revenue Fund........................................................................................112
State Park Special Revenue Fund........................................................................................................113
TDASpecial Revenue Fund.................................................................................................................114
Traffic Safety Special Revenue Fund...................................................................................................115
CDBGSpecial Revenue Fund...............................................................................................................116
AQMD Special Revenue Fund.............................................................................................................117
Stormwater Utility Special Revenue Fund.........................................................................................118
Miscellaneous Grants Special Revenue Fund....................................................................................119
Federal Urban Aid Special Revenue Fund.........................................................................................120
BJA Law Enforcement Special Revenue Fund...................................................................................121
Supplemental Law Grant Special Revenue Fund..............................................................................122
HOMESpecial Revenue Fund.............................................................................................................123
Library Facility Fees Special Revenue Fund......................................................................................124
Public Education and Government Special Revenue Fund.............................................................125
Proposition C Special Revenue Fund..................................................................................................126
Federal Grants Special Revenue Fund................................................................................................127
Measure R Special Revenue Fund.......................................................................................................128
Tourism Marketing District Special Revenue Fund..........................................................................129
Open Space Preservation District Special Revenue Fund................................................................130
City of Santa Clarita
Comprehensive Annual Financial Report
For the year ended June 30, 2012
Table of Contents, Continued
Pa¢e
FINANCIAL SECTION, Continued
Internal Service Funds:
Description of Internal Service Funds.......................................................................................................132
Combining Statement of Net Assets..........................................................................................................133
Combining Statement of Revenues, Expenses and Changes in Net Assets.........................................134
Combining Statement of Cash Flows
......................................135
Fiduciary Funds:
Description of Fiduciary Funds..................................................................................................................136
Combining Statement of Fiduciary Assets and Liabilities.....................................................................137
Schedule of Changes in Fiduciary Assets and Liabilities.......................................................................138
Independent Auditors' 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 .......................................143
STATISTICAL SECTION (Unaudited)
Tableof Contents.......................................................................................................................................................145
NetAssets by Component.......................................................................................................................................147
Changesin Net Assets..............................................................................................................................................148
Fund Balances of Governmental Funds.................................................................................................................150
Changes in Fund Balances of Governmental Funds............................................................................................152
Assessed Value and Actual Values of Taxable Property .....................................................................................154
Assessed Value and Actual Values of Taxable Property - Redevelopment Agency.......................................156
Assessed Value - Taxable Property ........................................................................................................................158
Assessed Value - Use Category Summary ............................................................................................................160
Direct and Overlapping Property Tax Rates.........................................................................................................161
PrincipalProperty Tax Payers.................................................................................................................................163
Property Tax Levies and Collections......................................................................................................................165
Ratiosof Outstanding Debt by Type......................................................................................................................166
Ratio of General Bonded Debt Outstanding..........................................................................................................168
Direct and Overlapping Bonded Debt....................................................................................................................169
LegalDebt Margin Information..............................................................................................................................170
Pledged- Revenue Coverage..................................................................................................................................172
Demographic and Economic Statistics...................................................................................................................173
PrincipalEmployers..................................................................................................................................................174
Full -Time and Part -Time City Employees by Function.......................................................................................175
OperatingIndicators by Function...........................................................................................................................176
Capital Asset Statistics by Function........................................................................................................................177
Ciry of
SANTA CLARITA
23920 Valencia Boulevard a Suite 300 • Santa Clarita, California 91355-21%
Phone: (661) 259-2489 • FAX: (661) 2598125
uw .wnw-clatita.com
January 11, 2013
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, 2012 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, 2012.
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. Marcum LLP, Certified Public Accountants, an independent firm of certified
public accountants, has issued an unqualified ("clean") opinion on the financial
statements of the City of Santa for the year ended June 30, 2012. 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 furn. 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 on the fair
presentation of the financial statements, and 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 Reports.
CITY PROFILE
The City of Santa Clarita was incorporated on December 15, 1987 as a General Law City,
and operates under a City Council/City Manager form of government. Located minutes
from Bob Hope Airport in Burbank, 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
61.81 square miles. With a population of 203,000, the City is the 18s' largest city in the
State of California, and the third largest in Los Angeles County. Santa Clarita residents
enjoy an expansive year-round parks and recreation network, featuring 29 beautiful park
facilities totaling more than 332 acres, over 7,200 acres of City owned open space, and
more than 95 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.
In recent years, Santa Clarita has attracted regional and national sports events like the
Amgen Tour of California, Pac-12 Cross Country Championships, Tributefest, Southern
California Sectionals Swim Meet, LA Underwater Hockey Nationals, and a variety of
youth and adult sporting events. 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 by the Councilmembers. The City 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 implementing the policies of the Council, overseeing the day-to-day operations of
City government, and for appointing and managing 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 libraries, public works, parks and recreation, community development, and
cultural events. The City also provides services through the Santa Clarita Public
Financing Authority (PFA) and the Santa Clarita Redevelopment Agency (RDA), which
are blended component units of the City of Santa Clarita. The financial activities of these
entities are included in this report as their activities are under the control of the City. The
activities of the RDA are reported through its dissolution date of February 1, 2012. A
separate component unit report for the Santa Clarita PFA is also available.
ii
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 category level within each fund.
LOCAL ECONOMY
The City of Santa Clarita is one of Southern California's most desirable 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.
Recovery from the recession continues at a slow pace and is expected to hold at this rate
through 2012. The City has a 100 percent track record for adopting a balanced, on-time
budget, with ample reserves and contingency funds. Fiscal Year 2011-2012 was
successful and stable for the City due to prudent fiscal planning.
Santa Clarita boasts one of the lowest unemployment rates in Los Angeles County at 6.2
percent, compared to 10.2 percent for Los Angeles County as of September 2012.
Targeted employment sectors in Santa Clarita include aerospace, manufacturing,
biomedical, entertainment, and technology. This past year we welcomed several new
retailers to the 180,000 square foot expansion of Westfield Valencia Town Center at The
Patios including, Lucille's Smokehouse BAR-B•QUE and Larsen's Steakhouse. Several
new companies either expanded within or relocated to Santa Clarita, including a large
accounting firm, King, King, Alleman & Jensen Accounting Corporation that relocated
from Burbank to Santa Clarita.
Retail vacancy rates continue to hold at a low six to seven percent, while industrial
vacancies remain around five percent. The largest area of potential growth in the City is
in the area of office space, with Santa Clarita at an 18 percent vacancy rate in 3'd Quarter
2011 compared to a 15 percent vacancy rate in P Quarter 2012 (however several leases
for available space are currently underway and that number may decrease further by early
2013).
The City's entertainment industry was strong in Fiscal Year 2011-2012 with an economic
impact of $21.1 million to local businesses from location filming. Santa Clarita is home
to more than 20 sounds stages, 10 movie ranches and hundreds of film related businesses.
Network television shows including CBS's "NCIS" and "Vegas," ABC Family's
"Switched at Birth," and "Jane by Design," FX's "Justified," TBS's "The Wedding
Band," and TNT's "Franklin and Bash" are based in Santa Clarita and regularly film on
location within the City.
iii
Tourism continues to be one of the City of Santa Clarita's largest economic generators
contributing more than $2.3 million to the general fund from Transient Occupancy Tax
(TOT) in Fiscal Year 11-12. The second year of the Tourism Marketing District (TMD),
a collaborative assessment program and partnership between the City and five local
hotels, grew upon the successes of the initial year, over $427,000 collected in support of
increased marketing and promotion of Santa Clarita as a tourism destination. TMD
dollars are a vital component of the area's continued attraction of events and visitors,
which translates to dollars spent in the community and at local businesses. The following
events are just a few that were attracted as part of the City's increased event attraction
efforts: SCV Magic Soccer Tournament, California Superstates Chess Championship,
LAVA Volleyball Foothill Invitational, Triple Crown Softball, the Mustang Challenge
cross country event, and the Pac-12 Cross Country Championships.
The City of Santa Clarita continues to use business attraction and retention programs like
the Santa Clarita Valley Enterprise Zone Program to support business by providing tax
incentives to companies located within the zone. In January 2011, the Enterprise Zone
was expanded to include businesses in unincorporated Los Angeles County. This new
expanded Zone provides the opportunity for tax savings to the more than 6,000
businesses in Santa Clarita Valley. The resulted savings generated for the more than 400
Santa Clarita businesses that have taken advantage of the program since 2007 is more
than $238 million.
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. These colleges
offer world-class instruction and programming to prepare students to become the next
generation of business professionals and leaders.
LONG -TERM FINANCIAL PLANNING
Santa Clarita is one of California's model cities, boasting the essential elements needed
for well-balanced living and total wellbeing. Santa Clarita remains 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 65 percent of adults over age 25 and
older having attained some college or higher, as compared to Los Angeles County, which
averages 54 percent.
The City of Santa Clarita has experienced steady 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. Since 2007, 1,226 people have been hired into jobs at local
businesses through the Enterprise Zone program. 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 whereby providing an increased
opportunity for residents to work close to home.
iv
The slight recovery in our economy has directly affected the City's revenue growth
producing increases in sales tax and TOT. Property tax, property tax in -lieu of Vehicle
License Fee (PT -VLF), and real property transfer tax have remained relatively flat for
Fiscal Year 2011-2012.
Millions
Major Tax Revenues
35
30
■ Saks Tax"
25
■ Property Taxes
20
O PT -VLF
15
■ Trans ient Occupancy
Taxes
10
°'
■ Real Property Trans fer Te
5
0
2007-08
2008-09 200940 2010.11 2111-12
Fiscal Year
The City provides necessary funding for essential services for City Council and
community identified priorities, while taking steps to ensure the City remains in good
financial health. Annually, the City prepares extended forecasts for the General Fund to
determine the future impact of current actions. These forecasts indicate a stable General
Fund over the next few years, primarily due to projected marginal increases in sales,
property taxes, and property taxes in lieu of VLF. However, because the City of Santa
Clarita has practiced smart growth in successful financial times, the City is well prepared
for times when revenue projections do not include growth. In response to the City's
proactive budgetary management, allowing it to maintain stable operations and improved
available general fund reserves despite challenging economic circumstances, Standard &
Poor's Ratings Services raised the City's issuer credit rating from AA+ to AAA in
September 2012.
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
u
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 2011-2012
4, In September 2012, Standard & Poor's Ratings Services (S&P) raised the City's
issuer credit rating from AA+ to AAA. S&P also raised its rating on the City's
certificates of participation and lease revenue bonds from AA to AA+. S&P's
outlook on the ratings is stable based on the City's proactive budgeting approach
and its ability to maintain consistent operations supported by very strong available
general fund reserves. Additional rating stability is provided by the City's good
financial management practices.
4 On September 29, 2012, the City of Santa Clarita opened the new 30,000 square
foot Old Town Newhall Library on Main Street. The Leadership in Energy and
Environment Design (LEED) certified building features a children's library, teen
area, ample meeting space and community rooms, laptops for use in the Library,
an indoor fire -side reading area with art and photographs that pay tribute to
Newhall's history. Thousands of residents came out in support of the Library's
first day of operation, and since opening, the Library continues to attract more
than a thousand visitors each day:
4 In 2011 the City of Santa Clarita had its lowest crime rate in the city's history with
a 14 percent drop in violent crimes. For 2011, the City's crime rate dropped by
7.81 percent compared to 2010, according to figures released in February 2012 by
the Los Angeles County Sheriff s Department. In 2011, there were 2,833 reported
incidents within the City, a decline from the 3,073 reported crimes in 2010, the
data shows.
0 In August 2011 the City launched an outreach campaign, Heroin Kills: The High
is a Lie, in response to a spike in heroin related deaths and arrests in the Santa
Clarita Valley. The public awareness campaign was meant to inform residents that
heroin was in Santa Clarita and devastating families. The second year of the
campaign included a second symposium in August 2012, attended by hundreds of
local teens and their families. The City continues to work with non-profit partners
to bring awareness to the issue and resources to those in need.
@ In October 2012, the City celebrated the completion of the Old Town Newhall
Building Improvement Grant program. The program was developed in 2010 to
assist property owners in the Old Town Newhall area to make improvements to
their buildings' exterior, or come into compliance with City code violations. Five
property owners received $55,000 each in grant funds through the American
Recovery and Reinvestment Act, and on October 24, 2012, the City hosted a
vi
ribbon -cutting ceremony on Main Street to commemorate the completion of the
program.
@ The City's Film Office celebrated another record year in Fiscal Year 2011-2012,
with an eight percent increase in film permits over last year. Film days are also up
a record four percent. The City's film friendly permitting system, a responsive
film staff and the City's film incentive programs contribute to these
successes. Over the past year, filming contributed an estimated $21 million
dollars in economic impact to the community through jobs and business sales. In
March, the City Council approved a three year extension of the City's Film
Incentive Program, which is dedicated to retaining and increasing feature and
television production by reducing the costs of safety personnel and subsidizing
permit fees and location fees for city -owned properties.
d In November, 2012 Santa Clarita became the first City in the 30 -Mile Zone to
approve a new zoning designation that supports filming at local movie ranches.
The Movie Ranch Overlay Zone (MOZ) designation assigns certain areas where
location filming and related facilities, including soundstages, are permitted by
right.
6 Installation of On the Go Real Time Bus Information placards began in June,
2012 at all of the City's 750 bus stops. The program allows transit riders to track
their bus location in real time in variety of ways using their mobile devices.
4 The City's Arts Commission, in conjunction with staff from the Parks, Recreation
and Community Services Department, completed the Arts Blueprint, which is
intended to serve as a guiding document for the next three years for five art
subject areas.
6 The City's Parks, Recreation, and Community Services Department won a
California Parks and Recreation Society Award of Excellence recognizing
environmental stewardship for the City's Open Space Preservation program. In
Fiscal Year 2011-2012, the City passed the 7,200 acre mark for open space
acquisitions.
d The City annexed three new communities into the City in the last year, including
Copperstone, Jake's Way, and Fair Oaks Ranch, in addition to assuming control
of maintenance and programming for three parks within City limits: Chesebrough
Park, Northbridge Park, and an undeveloped park property at the comer McBean
Parkway and Summerhill Lane. The most recent annexation was of the North
Copper Hill community that occurred in November 2012.
*Acquiring open space through the Open Space Preservation District and
construction of new trails throughout the community continued to be priorities for
the City. In June 2012, the City hosted a dedication for the new Iron Horse Trail,
vii
and in July 2012, the City hosted another dedication event celebrating the
acquisition of more than 800 acres of land in Elsmere Canyon.
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, 2011. This was the twenty-third consecutive year the City has
achieved this prestigious award. In order to be awarded a Certificate of Achievement for
Excellence in Financial Reporting, a government unit must publish an easily readable and
efficiently organized Comprehensive Annual Financial Report. This report must satisfy
GAAP and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period
of one year only. We believe our current comprehensive annual financial report
continues to meet the requirements of the GFOA Certificate of Achievement Program,
and we are submitting it to GFOA to determine its eligibility for another certificate.
This report is a joint effort by many people from many different areas of responsibility.
The preparation of this report could not have been accomplished without the hard work
and team effort of the staff of the Finance Division, in particular, Finance Manager
Carmen Magana, and Financial Analysts Clint Osorio, Susan Cromsigt, Mary Ann
Ruprecht, Jan Downey, Eric Herrera, and Paul Chung. 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, Councitmembers,
City Manager Ken Striplin, Director of Public Works & Interim Director of Community
Development Robert Newman, and Director of Parks, Recreation and Community
Services Rick Gould for their continuing efforts in administering the financial operations
of the City in a conservative and responsible manner.
Sincerely,
arren Hernandez,
Deputy City Manager
DH:cm
viii
Certificate of
Achievement
for Excellence
in Financial
Reporting
City of Santa Clarita.
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2011
A Certificate of Adtimment 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,
,' tk
s
President
Executive Director
ix
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2012
City Council
Frank Ferry
Bob Kellar
Marsha McLean
TimBen Boydston
Laurene Weste
City Officials
Ken Pulskamp
Ken Striplin
Darren Hemdndez
Joseph Montes
Robert Newman
Richard Gould
Robert Newman
MAYOR
MAYOR PRO TEM
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
CITY MANAGER
ASSISTANT CITY MANAGER
DEPUTY CITY MANAGER
CITY ATTORNEY
INTERIM DIRECTOR OF COMMUNITY
DEVELOPMENT
DIRECTOR OF PARKS, RECREATION & COMMUNITY
SERVICES
DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
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MARCUM
ACCOUNTANTS • ADVISORS
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 (the "City") as of and for the year ended June 30, 2012, which collectively comprise
the City's basic financial statements as listed in the table of contents. These financial statements are
the responsibility of the City s management. Our responsibility is to express opinions on these
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 also includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions.
hi our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Santa Clarita as of June 30, 2012,
and the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
As explained further in Note 18 to the basic financial statements, the California State Legislation
enacted Assembly Bill X1 26 (the "Bill") that dissolved the City's redevelopment agency as of January
31, 2012. In accordance with the timeline set forth in the Bill (as modified by the California Supreme
Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and
ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and
activities of the dissolved redevelopment agency are reported in a fiduciary fund (Private -purpose
trust fund). The transfer of the assets and liabilities of the former redevelopment agency as of
February 1, 2012 (effectively the same date as January 31, 2012) to the Successor Agency is reported in
the private -purpose trust fund as an extraordinary loss.
MARCIAIGROLF
MEMBER
Nacos ur B 5 Park Plaza ■ Sub 700 ■ Irvine, Qd fomia 9211114 ■ Mass 949.653.9400 ■ Fa 919.933.3592 ■ waFwptume 1
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 2
In accordance with Gavernment Auditing Standards, we have also issued our report dated January 11,
2013, on our consideration of the City's internal control over financial reporting and on our bests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. 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
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.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary information and comparison schedules on
pages 5 through 17, 86 through 91 and 108 to 130 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
colleclively comprise the City's financial statements. The combining and individual nonmajor fund
financial statements are presented for purposes of additional analysis and are not a required part of
the financial statements. The combining and individual nonmajor fund financial statements are the
responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the financial statements or to the financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual nonmajor fund financial statements
is fairly stated in all material respects in relation to the financial statements as a whole.
2
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, California
Page 3
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's financial statements. The introductory and statistical sections are
presented for the purposes of additional analysis and are not a required part of the basic financial
statements. Such 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 or provide any
assurance on it.
Irvine, California
January 11, 2013
91
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2012
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, 2012. 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 $949.4
million Of this amount, $82.2 million represents unrestricted net assets that may be used to meet
the City's ongoing obligations to citizens and creditors.
The City's total net assets increased by 6.1%, primarily due to the decrease in long term debt as a
result of the transfer of the long -berm debt of the City's former Redevelopment Agency to a Private
Purpose Trust. This transfer was due to the dissolution of redevelopment agencies in the State of
California. Additional information on the dissolution of the City's redevelopment agency can be
located in Note 18 to the financial statements on page 82. Net assets of the business -type activities
increased by $957,745, or 1.2%, and net assets of the governmental activities increased by $53.9
million, or 6.6%.
• The capital assets of the City's governmental activities increased by $899,510, or 0.12% over last
fiscal year.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $92.3 million. This represents a decrease of $8.3 million as compared to the prior
year. The decrease is due in part to the establishment of an irrevocable trust for post employment
benefits in fiscal year 2011-12. The City contributed $20.3 million to the trust during the fiscal year.
• Within Governmental Funds, the General Fund reported a fund balance of $69.9 million, a decrease
of $13.7 million over 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:
See independent auditors report.
USING THIS ANNUAL REPORT (CONTINUED)
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).
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 berm, 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.
See independent auditors report.
REPORTING THE CITY AS A WHOLE - GOVERNMENT -WIDE FINANCIAL STATEMENTS
(CONTINUED)
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.
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. The financial activity for the Santa Clarita Redevelopment Agency is reported through January
31, 2012. Redevelopment agencies were dissolved in the state of California effective February 1, 2012.
REPORTING THE CrTY'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.
See independent auditors report
7
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS - FUND FINANCIAL STATEMENTS
(CONTINUED)
The City reports governmental fund financial information within 35 governmental funds. The general
fund, bridge and thoroughfare fund, developer fees fund, public library fund, and landscape maintenance
district 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 30 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.
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 CTTY 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.
California Assembly Bill 1X 26 (AB 1X 26) dissolved redevelopment agencies in the State of California
effective February 1, 2012. The City elected to serve as the Successor Agency to its former Redevelopment
Agency. All assets and liabilities of the former redevelopment agency were transferred to a private purpose
trust which is reported as a fiduciary fund. Also, see Note 18 to the basic financial statements.
See independent auditors report
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.
• M:..: • :.0 : V MOL
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 86-92 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 can be found on pages 94-139 of this report.
THE CITY AS A WHOLE
The analysis below focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City's
governmental and business -type activities.
The City's net assets may be analyzed and used as an indicator of the City's overall financial condition. The
City's combined net assets increased by $54.9 million, increasing from $894.5 million to $949.4 million.
See independent auditors report.
9
THE CITY AS A WHOLE (CONTINUED)
ASSETS:
Currant and Other Assets
Capital assets
TOTAL ASSETS
LIABILITIES:
Long Term Liabilities
Other Liabilities
TOTAL LIABILITIES
NET ASSETS
Invested m capital assets,
net of related debt
Restricted
Unresbxted
TOTAL NEP ASSETS
TABLET
CITY OF SANTA CLARITA'S NET ASSETS
Governmental Activities Businesstype Activities Total
2012 2011 2012 2011 2012 2011
196,388,056 $ 11,188,970 $ 6,109,016 $ 3,152,010 $ 202,497,072 $ 214340,798
777,121,589 776=079 73,778,640 75,416,686 850,900,229 851,638,947
973,509,615 987,411,049 79,887,656 78,568,696 1,053,397,301 1,065,979,745
41,433,845 77,429,075
41,433,845 77,429,075
59,461,754 91,316,721 3,009,597 2,648,382 62,474351 93,%5,103
100,895599 168,745,7% 3,009,597 2,618,382 103,905,196 17L394,178
743,281,558 717,613,095 73,778,640 75,416,868 817,060,198 793,029,963
50,191,277 33,654,470 - - 50,191,277 33,654870
79,141,211 67,397,688 3,M,419 503,446 82,240,630 67,901,134
$ 872,614,046 $ 81805,753 $ 76,878,059 $ 75,920,314 $ 949,492,105 $ 894,585567
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, 2012, assets exceeded liabilities by $949.4 million. The largest component of the City's net
assets, 86%, is represented by its $817 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. One of the largest additions to the City's capital assets for fiscal year 2011-2012
was for infrastructure in the amount of $17.5 million. Another large addition to the City's capital assets was
$11.9 million in construction -in -progress, of which $8.9 million was for the Old Town Newhall Public
Library. 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, 5.3%, represents resources subject to external restrictions on
how they may be used. The remaining 8.7% of unrestricted net assets, $82.2 million may be used to meet
the City's ongoing obligations to citizens and creditors.
See independent auditors report
10
THE CITY AS A WHOLE (CONTINUED)
Consistent with the prior year, at the end of the current fiscal year, the City is able to report positive
balances in both categories of governmental and business -type net assets. Net assets for governmental
activities increased by $53.9 million over the prior year, $36 million of which is represented by a decrease in
long term liabilities. The majority of this decrease is due to the transfer of the former Redevelopment
Agency's long term debt to a private purpose trust fund as a result of the dissolution of redevelopment
agencies in the State of California. The unrestricted portion of the business -type activities increased by $2.5
million.
Governmental Activities
Revenues from governmental activities were up by $6.5 million, or 4.3%. The cost of all governmental
activities this year was $137 million, a decrease of .66% over the past year. As shown in the Statement of
Activities, the governmental activities expenditures were ultimately financed in part by the taxpayers, as
$32.3 million in revenues were generated by service revenues received from the performance of these
activities; another $16 million was received from government agencies and other organizations that
subsidized certain programs with operating grants and contributions; and another $28.6 mullion in revenues
was generated from capital grants and contributions. Public Works and Community Development
programs generated net revenues of $1.6 million and $2 million, respectively. Overall, the City's
governmental program and general revenues amounted to $157.4 million, which funded the expenditures
and resulted in a $53.9 million increase in net assets. Part of the $157 mullion program and general revenue
is other non -program governmental revenue amounting to $80.5 million that the City realized this past
year.
See independent auditors report
11
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 terns debt
Transit
Total Expenses
Increase/ Decrease in Net Assets before
transfers
Transfers
Increase/ Decrease In Net Assets after
transfers
Gain from dissolution of former
Redevelopment Agency of the City of
Santa Clarita (Note 18)
Changes in net assets
Governmental Activities
Business -type
Activities
Total
2012
2011
2012
2011
2012
2011
6,882,238
16,193,030
157,473,445
150,947,230
19,044,181
$ 32,316,820
$ 23,913,817
$ 6,616,778 $
6573,879
$ 38,933,598
$ 30,487,6%
16,032,433
14,090,686
7,385,264
6,913,534
23,417,697
21,004,220
28,616,388
31,325,725
5,041,992
13,043,418
33,658,380
44,369,143
34,818,426 24,9%,219
38,719,404 39,587,975
34,818,426 24,996,219
38,719,404 39,587,975
87,883
812,475
-
-
87,883
812,475
61882,091
16,220,333
147
(27,303)
6,882,238
16,193,030
157,473,445
150,947,230
19,044,181
26,503,528
176,517,626
177,450,758
33,664,470
47,048,462
-
-
33,664,470
47,048,462
27,391,075
21,280,904
-
-
27,391,075
21,280,904
30,623,718
25,799,166
-
-
30,623,718
25,799,166
19,282,538
11,281552
-
-
19,282538
11,281552
5,896,640
11,547,650
-
-
5,896,640
11,547,650
16,844,238
16,392,901
-
-
16,844,238
16,392,901
3,391,058
4,650,566
-
-
3,391,058
4,650566
24,930,635
24,127,043
24,930,635
24,127,043
137,093,737
138,001,201
24,930,635
24,127,043
162,024,372
162,128,244
20,379,708 12,946,029
(6,844,199) (5,808,300)
13535509 (7,137,789)
40,413,284
53,948,793 (7,137,789)
(5,886,454) 2,376,485
6,844,199 5,808,3011
14,493,254 15,322,514
957,745 8,184,785 14,493,254 15,322514
40,413,284
957,745 8,184,785 54,906,538 15,322514
Net Assets - Begvuting of Year
818,665,253
811,527,464
75,920,314
67,735,529
894585,567
879,262,993
Net Assets - End of Year
$ 872,614,046
$ 818,665,253
$ 76,878,059
$ 75,920,314
$ 949,492,105
$ 894,585567
See independent auditors report.
12
THE CITY AS A WHOLE (CONTINUED)
Business -Type Activities
Business -type activities increased the City's net assets by $957,745 for the current year. Business -type
activities revenues decreased by $7.4 million during the year for a total of $19 million in revenues, not
including the $6.8 million of transfers in from other governmental activities. The decrease was largely due
to a decrease of $8 million in capital grants and contributions. The majority of this decrease is due to the
American Recovery and Reinvestment Act funding received in fiscal year 2010-11. Related transit activity
expenses increased by $803,592.
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $92.3
million, a decrease of $8.3 million over the prior year. Approximately $46.9 million is restricted and already
committed for specific restricted purposes.
The total governmental fund balance includes the general fund balance of $69.9 million, a decrease of $13.7
million over the prior year. The general fund is the chief operating fund of the City of Santa Clarita. The
decrease is due in part to the establishment of an irrevocable trust for post -employment benefits in fiscal
year 2011-12 to which the City contributed $20.3 million. The unassigned general fund balance of $50.6
million is available for spending at the City's discretion. More detailed information about the City's
classification of fund balances are presented in Note 11 to the financial statements.
Other Major fund balance changes are noted below:
• The bridge and thoroughfare fund has realized a decrease of $273,762 from the prior year.
• The developer fees fund balance increased $614,612 in the current year.
• The public library fund has realized a decrease of $7.5 million in its fund balance from the prior
year. The majority of this decrease is due to the $8.4 million spent on the construction of the Old
Town Newhall Library which opened on September 29, 2012.
• The Landscape Maintenance District's fund balance increased $1.4 million from the prior year.
In addition to the major funds, the fund balances for the other governmental funds experienced an
aggregate increase of $11.1 million. Of the $11.1 million increase, $8.3 million was due to the extraordinary
gain from the dissolution of the City's redevelopment agency.
The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail. The total net assets for the transit enterprise fund increased over the prior
year by $957,745 or 1.2%. The unrestricted portion of the business -type activities net assets increased by
$2.5 million from the prior year. The Internal Service funds net assets increased by $7 million or 24.3%. The
ending fund balance for Internal Service funds is $35.9 million, of which $27.3 million is unrestricted.
See independent auditors report.
13
THE CITY'S FUNDS (CONTINUED)
General Fund Budgetary Highlights
Comparison of the fiscal year 2011-12 original (adopted) general fund budgeted expenditures and transfers
of $77.8 million to the final budgeted expenditures of $89.7 million results in a net increase of $11.9 million.
Included in this net increase is $518,182 in committed purchase orders and contracts from the prior June 30
balance, as well as $572,781 of prior fiscal year operating and capital improvement projects approved for
carryover into fiscal year 2011-12. The resulting beginning budget balance was equal to $78.9 million.
Original Budget+ Cont. Appropriations + Encumbrances = Beg. Balance+ supplemental Changes = Final Budget
$77,890,753+ $572,781+ $518,182= $78,981,716+ $10,756,775= $89,738,491
Comparing the beginning budget of $78.9 million with the final budget of $89.7 million indicates the
general fund had supplemental budgetary appropriations of $10.7 million 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 $251,015.
Included in the net increase are a $1.2 million increase in Sales Tax and a $900,000 decrease in Vehicle
License Fee revenue due to the passage of SB89 which diverted this revenue from cities.
At year end, the City's actual revenues are $3.4 million more than the final budgetary estimates. Actual
expenditures were more than the final budgetary estimates by $13.6 million. The majority of this variance
was due to the $20.3 million contributed to the irrevocable post -employment benefit trust.
See independent auditors report
14
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City had $850.9 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)
Land
Construction in progress
Governmental Activities
2012 2011
$122,169,150 $ 123,614,634
13,594,441 6,477,297
Infrastructure, net
584,748,522
588536,627
Depreciable site
$15,087,880
$ 15,087,880
improvements,
$138,702,514
2,875,593
net
20,258,460
21,024,498
Depreciable buildings and
-
584,748522
improvements, net
34,267,401
34,381,092
Depreciable equipment, net
2,083,615
2,187,930
TOTALS $ 777,121,589 $ 776,222,078
Major capital asset events during the year included:
Business Type Activities
Total
2012
2011
2012
2011
$15,087,880
$ 15,087,880
$137,257,030
$138,702,514
2,875,593
6,957,970
16,470,034
13,435,267
-
-
584,748522
588,536,627
6,492,671
1,465,214
26,751,131
22,489,712
33,974,800
34,858,148
68,242,201
69,239,240
15,347,696
17,047,657
17,431,311
19,235,587
$ 73,778,640 $ 75,416,869 $ 850,900,229 $ 851,638,947
• On-going construction of the Old Town Newhall Library accounted for the majority of the increase
in construction in progress. The library was opened to the public on September 29, 2012.
• A transfer of $3.6 million in construction in progress was made to the private purpose trust fund
established for the former redevelopment agency.
• Land purchases totaled $1.4 million. A reclassification of land to construction -in -progress and
improvements of $2.9 million resulted in the net decrease to land of $1.4 million.
Additional information on the City of Santa Clarita's capital assets can be located in Note 4 to the financial
statements on pages 61 through 63.
See independent auditors report.
15
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Debt Administration
At year-end, the City's total debt amounted to $43 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
Lease Revenue Bonds
Contract and leases
Payable
Compensated Absences
TABLE 4
CITY OF SANTA CLARITA'S OUTSTANDING DEBT
Governmental Activities Business -type Activities Total
2012 2011 2012 2011 2012 2011
$11,336,937
$ 12,394,795 $ - $
- $11,336,937
$ 12,394,795
$0.00
37,495,684 -
- $0.00
37,495,684
15,490,000
15,525,000 -
- 15,490,000
15,525,000
12,614,938
12,898596 -
- 12,614,938
12,898,596
242,417
242,417
1,040,000
1,413,786 -
- 1,040,000
1,413,786
2,685,537
2,625,890 -
- 2,685,537
2,625,890
Claims Payable 50,000 40,000 _
TOTALS $ 43,459,829 $ 82,393,751 $
50,000 40,000
$ $ 43,459,829 $ 82,393,751
The City's governmental activities had $43 million in debt at year-end. Governmental Activities long-term
debt decreased overall by $38.9 million during the year. This decrease was largely in part due to the
transfer of the former Redevelopment Agency's Tax Allocation Bonds to a private purpose trust fund as
part of the redevelopment agency's dissolution.
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, 2012, the City was able to meet its current year debt obligation in a
timely manner. 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, 2012, was
$3,209,877,204.
Additional information on the City of Santa Clarita's debt can be located in Note 5 to the financial
statements, on pages 64 through 71.
See independent auditors report
16
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
The City's budget continues to be faced with threats of takeaways from the State. Our long history of
conservative and strategic budget practices has allowed the City to roll with the punches and maintain a
balanced budget during every year of the Great Recession without layoffs or drastic cuts in services.
Revenues have stabilized and we are seeing some increases.
• General fund sales tax revenue continues to be the largest revenue source to operate general
governmental functions, accounting for 37.4% or $30.3 million. This is 14.6% higher than what was
budgeted in FY 2011-12.
• Property tax revenues account for 30% or $24.3 million in 2012-13. This is a slight decrease of 1.5%.
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 2012-13 is $75.6 million, 4.7% higher than the budget
revenues of the prior year. The City/s general fund operating and capital expenditures for the coming year
are budgeted at $72.7 million, a 2.1% increase from prior year. Operational expenditures increased by 1.5%
or $1,097,000, and capital expenditures decreased from $674,600 to $0. The City/s 2012-13 operating budget
for all funds increased by 2.3% or $3 million.
The City remains dedicated to service excellence, teamwork and creativity. Instead of layoffs, the City
implemented a hiring freeze which originally resulted in 43 full-time vacant or eliminated positions. Six of
those positions were filled in fiscal year 2011-12 for a current total of 37 full-time vacant or eliminated
positions. Despite the budget cuts, City staff continues to do more with less, find creative ways to maintain
services revered by our community, and provide award winning programs. The 2012-13 budget remains to
be 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
promote growth and curb teen crimes. A copy of the City's 2012-13 budget can be obtained by contacting
the City Finance Division or visit the web at santa-clarita.com/cityhall/departments/cmo/citybudget.
See independent auditors report
17
In
BASIC FINANCIAL STATEMENTS
19
20
GOVERNMENT -WIDE FINANCIAL STATEMENTS
21
City of Santa Clarita
Statement of Net Assets
June 30, 2012
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Interest
Taxes
Prepaid costs
Due from other governments
Loans receivable
Due from fiduciary funds
Total current assets
Non-current assets:
Deferred charges
Advances to trust fund
Other postemployment benefits asset
Deposits
Capital assets:
Nondepreciable assets
Depreciable assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Unearned revenue
Deposits payable
Interest payable
Compensated absences payable
Due within one year
Total current liabilities
Noncurrent liabilities
Compensated absences payable
Due in more than one year
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital improvements
Special revenues
Special assessments
Total restricted assets
Unrestricted
Total net assets
See accompanying Notes to Basic Financial Statements.
23
Governmental
Business -type
20,256,903
Activities
Activities
Total
38,990,896
-
38,990,896
$ 156,811,544
$ 2,571,906
$ 159,383,450
900,242
14,223
914,465
724,760
-
724,760
9,397,826
-
9,397,826
26,476
188,795
215,271
5,565,678
3,334,092
8,899,770
2,201,118
-
2,201,118
638,993
-
638,993
176,266,637
6,109,016
182,375,653
3,275,312
1,212,384
-
1,212,384
13,318,896
-
13,318,896
5,169,937
-
5,169,937
420,202
-
420,202
135,763,591
17,963,474
153,727,065
641,357,998
55,815,166
697,173,164
797,243,008
73,778,640
871,021,648
973,509,645
79,887,656
1,053,397,301
17,312,040
2,944,863
20,256,903
588,348
12,370
600,718
38,990,896
-
38,990,896
544,486
-
544,486
271,414
52,364
323,778
1,754,570
-
1,754,570
59,461,754
3,009,597
62,471,351
2,414,123
-
2,414,123
39,019,722
-
39,019,722
41,433,845
-
41,433,845
100,895,599
3,009,597
103,905,196
743,281,558
73,778,640
817,060,198
3,275,312
-
3,275,312
30,692,775
-
30,692,775
16,223,190
-
16,223,190
50,191,277
-
50,191,277
79,141,211
3,099,419
82,240,630
$ 872,614,046 $
76,878,059
$ 949,492,105
City of Santa Clarita
Statements of Activities and Changes in Net Assets
For the Year Ended June 30, 2012
See accompanying Notes to Basic Financial Statements.
24
General Revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Grant and contributions not restricted to specific programs
Unrestricted investment eamings
Miscellaneous revenue
Transfers
Total general revenues and transfers
Extraordinary item:
Gain from dissolution of former Redevelopment
Agency of the City of Santa Clarita (Note 18)
Changes in net assets
Net assets - beginning of year
Net assets - end of yew
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Function4Trograms
Expenses
Services
Contributions
Contributions
Governmental activities:
General government
$ 33,664,470
$ 13,719,117
$ 2,543,014
$ -
Public safety
27,391,075
2,079,109
5,802,300
7,124,968
Public works
30,623,718
7,209,724
5,874,163
19,204,458
Parks and recreation
19,282,538
4,156,386
727,800
566,000
Community development
5,896,640
5,152,484
1,085,156
1,720,962
Unallocated infrastructure depreciation
16,844,238
-
-
-
Interest and fiscal charges
3,391,058
-
-
-
Total governmental activities
137,093,737
32,316,820
16,032,433
28,616,388
Business -type activities:
Transit
24,930,635
6,616,778
7,385,264
5,041,992
Total
$ 162,024,372
$ 38,933,598
$ 23,417,697
$ 33,658,380
See accompanying Notes to Basic Financial Statements.
24
General Revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Grant and contributions not restricted to specific programs
Unrestricted investment eamings
Miscellaneous revenue
Transfers
Total general revenues and transfers
Extraordinary item:
Gain from dissolution of former Redevelopment
Agency of the City of Santa Clarita (Note 18)
Changes in net assets
Net assets - beginning of year
Net assets - end of yew
Net (Expense) Revenue and
Changes in Net Assets
Governmental
Business -type
34,818,426
Activities
Activities
Total
6,920,244
-
$ (17,402,339)
$ - $
(17,402,339)
(12,384,698)
-
(12,384,698)
1,664,627
-
1,664,627
(13,832,352)
-
(13,832,352)
2,061,962
-
2,061,962
(16,844,238)
-
(16,844,238)
(3,391,058)
-
(313911058)
(60,128,096)
-
(60,128,096)
40,413,284
-
-
(5,886,601)
(5,886,601)
(60,128,096)
(5,886,601)
(66,014,697)
34,818,426
-
34,818,426
28,828,139
-
28,828,139
6,920,244
-
6,920,244
2,380,547
-
2,380,547
590,474
-
590,474
87,883
-
87,883
1,509,201
147
1,509,348
5,372,890
-
5,372,890
(6,844,199)
6,844,199
-
73,663,605
6,844,346
80,507,951
40,413,284
-
40,413,284
53,948,793
957,745
54,906,538
818,665,253
75,920,314
$94,585,567
$ 872,614,046 $
76,878,059
$ 949,492,105
FA
26
FUND FINANCIAL STATEMENTS
27
City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2012
ASSETS
Cash and investments
Receivable:
Accounts
Interest
Taxes
Prepaid costs
Due from other funds
Due from other governments
Deposits
Notes and loans receivable
Advances to other funds
Total assets
LIABILMES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Deferred revenue
Deposits payable
Due to other funds
Advances from other funds
Total liabilities
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities and fund balances
See accompanying Notes to Basic Financial Statements.
Special Revenue Funds
General Bridge and Developer Public
Fund Thoroughfare Fees Library
$ 52,818,149 $ 14,999,021 $ 6,385,468 $ 6,184,033
675,910 325 11008 -
350,921 67,272 28,659 1,464
7,046,661 - - 4.44,189
26,476 - - -
3,690,254 - - -
123,469 - - -
200 - - -
18,875,874 23,311,323 5574,660 -
$ 83,607,914 $ 38,377,941 S 11,989,795 $ 6,619,686
$ 6,642,866 $ 234,441 $ 6,506,620 $ 887,390
3,055,862 58,508 6,362,003 1,273
3,967,163 35,023,733 - -
2079,802 - 10,488,382
13,665,891 60,196,484 12,868,623 11,377,045
18,902,350 23,311,323 5,574,660
66,257
309,078
-
-
-
50,664,338
(45,129,866)
(6,453,488)
(4,757,359)
69,942,023
(21,818,543)
(878,828)
(4,757,359)
$ 83,607,914 $
38,377,941 $
11,989,795 $
6,619,686
28
Special Revenue
179,AM
landscape
Nonmajor Total
Maintenance
Governmental Governmental
District #1
Funds Funds
$ 20,221,933 $ 28,947,362 $ 129,555,966
41,944
179,AM
898,609
90,985
90,301
629,602
1,029,729
887,247
9,397,826
-
-
26,476
-
-
3,690,254
-
5,442,209
5,565,678
-
420,002
420,202
-
2,201,118
2,201,118
-
-
47,761,857
$ 21,384,391 $
38,167,661. $
200,147,588
$ 1,285,067 $ 1,659,763 S 17,216,147
79,133 3,663,557 13,220,336
- - 38,990,896
3,051,261 3,051,261
- - 35,368,184
1,364,200 8,374,581 107,846,824
- -
47,788,333
20,020,391 26,895574
46,915,%5
- -
66,257
- 3,275,312
3,584,390
- (377,806)
(6,054,181)
20,020,391 29,793,080
92,300,764
$ 21,384,591 $ 38,167,661 $
200,147,588
29
30
City of Santa Clarita
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2012
Total Fund Balances -Total Governmental Funds - Page 29
Amounts reported for governmental activities in the Statement of Net Assets are different
because:
Capital assets used in governmental activities are not financial resources and therefore
are not reported in governmental funds. Those assets consist of.
Non -depreciable
Depreciable, net of accumulated depreciation
Total capital assets
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 Governm nt-Wide Financial Statements:
Deferred charges, net of accumulated amortization
Certain revenues in the governmental funds are deferred because they are not collected
within the prescribed time period after year-end. However, these revenues are included
in the government -wide statements.
Change in deferred revenue and unearned revenue
OPEB asset is not a current asset. Therefore it is not included in the governmental fund
financial statements.
Government- Less
Wide Statement Internal Service
of Net Assets Funds
$ 135,763,591 $ 7,669,393
641,357,998 462,065
$ 777,121,589 $ 8,131,458
Government -
Liabilities were not due and payable in the current period. Therefore, they were not Wide Statement
reported in the governmental funds: of Net Assets
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.
Net assets of governmental activities - Page 23
See accompanying Notes to Basic Financial Statements.
31
$ 92,300,764
768,990,131
1,212,384
12,714,750
5,169,937
Less
Internal Service
Funds
$ (230,000) $ -
(1,480,000) -
(2,414,123) -
(810,000) -
(38,342847) -
183,125 -
(50,000) (50,000)
$ (43,188,415) $ (50,000) (43,138,415)
(544,486)
35,908,981
$ 872,614,046
City of Santa Clarita
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2012
REVENUES:
Taxes
Licenses and permits
Developer fees
Investment income
Revenue from other agencies
Fines and forfeitures
Service charges
Other revenue
Overhead reimbursement
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from capital lease
Transfers in
Transfers out
Total other financing sources (uses)
EXTRAORDINARY ITEM:
Gain from dissolution of Santa Clanta Redevelopment Agency
Net change in fund balances
FUND BALANCES:
Beginning of year
End of year
See accompanying Notes to Basic Financial Statements.
Revenue Funds
General Bridge and Developer Public
Fond Thoroughfare Fees Library
$ 63,389,240 $
- $
- $
4,649,762
4,097,709
-
-
-
-
-
7,124,968
-
1,205,900
615,626
137,985
13,465
487,798
-
-
-
560,384
-
-
-
6,776,268
-
-
-
234,739
1,751,831
3,681
95,333
3,496,092
-
-
-
80,248,130
2,367,457
7,266,634
4,758,560
32,145,979 - - 3,929,402
18,286,194 - 6,500,920 -
13,047,920 888,012 - -
19,254,122 - - -
3,947,307 - - -
- 1,416,791 145,519 8,737,933
- 329,280 - 182,006
86,681,522 2,634,083 6,646,439 12,849,341
(6,433,392) (266,626) 620,195 (8,090,781)
- - _ 252,068
9,377,734 - 260,240
(16,692,538) (7,136) (5,583) -
(7,314,804) (7,136) (5,583) 512,308
(13,748,196) (273,762) 614,612
(7,578,473)
83,690,219 (21,544,781) (1,493,440) 2,821,114
$ 69,942,023 $ (21,818,543) $ (878,828) $ (4,757,359)
32
Special Revenue
4,795,013 $
Landscape
Nonmajor Total
Maintenance
Governmental Governmental
District #1
Funds Funds
$ 791,698 $
4,795,013 $
73,625,713
-
-
4,097,709
-
57,018
7,181,986
320,266
446,552
2,739,794
-
27,887,344
28,375,142
-
1,113,701
1,674,085
13,876,810
7,491,934
28,145,012
-
844,116
2,929,700
-
-
3,496,092
14,988,774
42,635,678
152,265,233
9,837,909 4,903,159
50,816,449
- 625,306
25,412,420
- 6,817,675
20,753,607
- 269,462
19,523,584
- 1,976,565
5,923,872
3,603,888 13,499,308
27,403,439
- 2,338,787
2,338,787
- 3,231,848
3,743,134
13,441,797 33,662,110
155,915,292
1,546,977 8,973,568
(3,650,059)
- - 252,068
50,000 6,850,700 16,538,674
(150,846) (12,954,345) (29,810,448)
(100,846) (6,103,645) (13,019,706)
8,317,116 8,317,116
1,446,131 11,187,039 (8,352,649)
18574,260 18,606,041 100,653,413
$ 20,020,391 $ 29,793,080 $ 92,300,764
33
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, 2012
Net change in fund balance - total governmental funds - Page 33 $ (8,352,649)
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 Govemment-
Wide Statement of Activities and Changes in Net Assets, the cost of those assets was allocated over the estimated
useful fives as depreciation expense. This amount does not include internal service fund activity of $252,211. The
following was the amount of capital assets activity recorded in the current period:
Capital outlay 17,769,322
Disposal of capital assets (192,456)
Developer contributions that were made during the year in the form of land dedication and donations did not
constitute revenues that were available and were not recorded in the governmental funds. They were recorded in the
Government -Wide Statement of Activites and Changes in Net Assets as Capital Contributions: 6,662,934
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 $19,922,259 and the depreciation expense of the internal
service funds in the amount of $282,922. (19,639,337)
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
(31,710)
Amortization of deferred charges
(52,662)
Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased
long-term liabilities in the Government -Wide Statement of Net Assets. Repayment of bond principal was an
expenditure in the governmental funds, but the repayment reduced long-term liabilities in the Government -Wide
Statement of Net Assets.
Issuance of debt
(252,068)
Principal payments on bonds, COPs, loans and capital leases
2,348,437
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
211,767
Accrued interest
436,149
Other post employment benefits
17,364,112
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.
(1,454,722)
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. 7,035,208
Extraordinary gain in the Statement of Activities resulted from the increase or decrease of long-term assets and
liabilities, which were not reported in the governmental funds. This was caused by the dissolution of the City of Santa
Clarita Redevelopment Agency (see Note 18). 32,096,168
Change in net assets of governmental activities - Page 25 $ 53,948,793
See accompanying Notes to Basic Financial Statements.
34
PROPRIETARY FUND FINANCIAL STATEMENTS
35
36
City of Santa Clarita
Statement of Net Assets
Proprietary Funds
June 30, 2012
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
I.IABII.TTIES
Current liabilities:
Accounts payable and accrued liabilities
Deferred revenue
Compensated absences payable
Total current liabilities
Noncurrent liabilities:
Claims payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets
Restricted
Unrestricted
Total net assets
See accompanying Notes to Basic Financial Statements.
37
Business -Type
Government
Activity
Activities
Transit
Internal
Enterprise
Service Fund
$ 2,571,906
$ 27,255578
1,633
14,223 95,158
188,795 -
3,334,092 -
-
925,223
6,109,016
28,277,592
15,087,880
7,669,393
2,875,594
-
6,492,671
-
33,974,801
-
15,347,694
462,065
73,778,640
8,131,458
79,887,656
36,409,050
2,944,863
364,128
12,370
82,762
52,364
3,179
3,009,597
450,069
-
50,000
-
50,000
3,009,597
500,069
73,778,640
8,131,458
-
395,732
3,099,419
27,381,791
$ 76,878,059 $
35,908,981
City of Santa Clarita
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Year Ended June 30, 2012
OPERATING REVENUES:
Charges for services
Other revenues
Total operating revenue
OPERATING EXPENSES:
Administrative and personnel services
Transportation services
Service and supplies
Depreciation
Total operating expenses
OPERATION INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Intergovernmental grants
Investment income
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS AND CAPITAL CONTRIBUTIONS:
Transfers in
Transfers out
Capital contributions
Total transfers and capital contributions
Changes in net assets
NET ASSETS:
Beginning of the year
End of the year
See accompanying Notes to Basic Financial Statements.
38
Business -Type
Government
Activity
Activities
Transit
Internal
Enterprise
Service Fund
$ 4,075,660 $ 2,796,390
1,%3,957
222,758
17,138,206
-
1,741,362
2,035,078
4,087,110
282,922
24,930,635
2,540,758
(18,313,857)
255,632
7,385,264
-
147
352,001
7,385,411
352,001
(10,928,446)
607,633
7,089,253 6,443,678
(245,054) (16,103)
5,041,992 -
11,886,191 6,427,575
957,745 7,035,208
75,920,314 28,873,773
City of Santa Clarita
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users
Other operating expenses or operating receipts
Payment to suppliers
Payments to employees
Net cash provided by (used for) operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash contributed by other governments
Cash received from other funds
Cash paid to other funds
Net cash provided by (used fm) noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
Net cash provided by (used fm) capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
Net cash provided by (used for) by investing activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities:
Depreciation expense
Change in assets and liabilities:
Increase (decrease) in due from other governments
Increase (decrease)in interest receivable
Increase (decrease) in prepaid expenses
Increase (decrease) in accounts payable and accrued liabilities
Increase (decrease) in due to other funds
Increase (decrease) in claims payable
Increase (decrease) in compensated absences
Increase (decrease) in deferred revenues
Net cash provided (used) by operating activities
See accompanying Notes to Basic Financial Statements.
39
Business -Type
Government
Activity
Activities
Transit
Internal
Enterprise
Service Fund
$ 4,061,437
$ 2,796,390
2,371,224
82,762
(18,726,153)
(1,833,213)
(1,957,322)
(219579)
(14,250,814)
826,360
7,385,264
7,089,253 6,412,250
(245,054) -
14,229,463 6,412,250
2,593,110 (210,556)
2,593,110 (210,556)
147
341,080
147
341,080
2,571,906
7,369,134
- 19,886,444
$ 2,571,906 $ 27,255,578
$ (18,313,857)
4,087,110
4,723,204
(14,223)
(188,795)
342,210
(4,905,468)
6,635
12,370
$ (14,250,814)
$ 255,632
282,922
191,865
10,000
3,179
82,762
$ 826,360
40
FIDUCIARY FUND FINANCIAL STATEMENTS
41
City of Santa Clarita
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2012
ASSETS
Cash and investments
Cash and investments with fiscal agent
Accounts receivable
Interest receivable
Cost of issuance of bonds
Capital assets
Total assets
LIABILITIES
Accounts payable and accrued liabilities
Interest payable
Due to other funds
Deferred revenues
Due to other agencies
Advances from City of Santa Clarita
Due to bondholders
Total liabilities
Net Assets (Deficits)
Held in trust for the retirement of obligations
of the former City of Santa Clarita Redevelopment Agency
See accompanying Notes to Basic Financial Statements.
42
RDA
$ 1,787
$ 566,241
Successor Agency
-
435,176
Private Purpose
Agency
638,993
Trust Fund
Funds
Total
$ 8,833,529
$ 145,727
$ 8,979,256
11165,418
1,793,342
2,958,760
-
600,227
600,227
16,796
655
17,451
1,198,052
-
1,198,052
3,628,587
-
3,628,587
$ 14,842,382
$ 2,539,951
$ 17,382,333
$ 564,454
$ 1,787
$ 566,241
435,176
-
435,176
-
638,993
638,993
14,608
569
15,177
569,923
-
569,923
13,318,896
-
13,318,896
36,938,910
1,898,602
38,837,512
51,841,967
$ 2,539,951
$ 54,381,918
$ (36,999,585)
$ (36,999,585)
City of Santa Clarita
Statement of Changes in Fiduciary Net Assets
Fiduciary Fund
For the period February 1 through June 30, 2012
Deductions
RDA
Enforceable obligations
Successor Agency
Administration
Private Purpose
Amortization of bond issuance costs
Trust Fund
Additions
1,014,783
Property taxes
$ 67,392
Investment income
13,067
Total additions
80,459
Deductions
Enforceable obligations
770,443
Administration
205,693
Amortization of bond issuance costs
38,647
Total deductions
1,014,783
Change in Net Assets
(934,324)
Transfer of Net Deficit in Operations from the dissolved
City of Santa Clarita Redevelopment Agency (Note 18) (36,065,261)
Net Assets (Deficit):
Beginning of period _
End of period $ (36,999,585)
See accompanying Notes to Basic Financial Statements.
43
44
NOTES TO BASIC
FINANCIAL STATEMENTS
45
City of Santa Clarita
Notes to Basic Financial Statements
For the year ended June 30, 2012
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 Clarity (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 and financial information can be obtained at the City's administrative offices. The Agency was
dissolved on February 1, 2012. See Note 18 for further discussion.
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.
46
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
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
47
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
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, for the government -wide and proprietary fund financial
statements, 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 Bridgee 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 Public Library Special Revenue Fund is used to account for receipts and disbursements associated
with the City of Santa Clarita Public Library.
The Landscape Maintenance District #1 Special Revenue Fund is used to account for receipts and
disbursements related to a landscape district.
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
present 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.
48
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements, 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.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets and a Statement of Changes in
Net Assets. The City s fiduciary funds represent a private -purpose trust fund and 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 RDA Successor Agency Private Purpose Trust Fund is used to account for monies received from the
L.A. County Auditor Controller for the repayment of the enforceable obligations of the former Santa
Clarity Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on
an approved Recognized Payment Obligation Schedule (RODS).
The City reports the following within its 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 Lnj the City
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).
49
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Fund Types reported U the City, Continued
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.
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
50
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
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.
51
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
G. 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.
H. 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.
L 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.
J. 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
after 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 and
Public Library Funds.
52
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K 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 - In the Governmental Fund Financial Statements, fund balances are
classified in the following categories:
Nonspendable - Items that cannot be spent because they are not in spendable form, such as
prepaid items and inventories, advances, which are long-term interfund borrowings, and items
that are legally or contractually required to be maintained intact, such as principal of an
endowment or revolving loan funds.
Restricted - Restricted fund balances encompass the portion of net fund resources subject to
externally enforceable legal restrictions. This includes externally imposed restrictions by
creditors, such as through debt covenants, grantors, contributors, laws or regulations of other
governments, as well as restrictions imposed by law through constitutional provisions or
enabling legislation.
Committed - Committed fund balances encompass the portion of net fund resources, the use of
which is constrained by limitations that the government imposes upon itself at its highest level
of decision making, normally the governing body through Council Resolution, and that remain
binding unless removed in the same manner. The City Council is considered the highest
authority for the City.
Assigned - Assigned fund balances encompass the portion of net fund resources reflecting the
government's intended use of resources. Assignment of resources can be done by the highest
level of decision making or by a committee or official designated for that purpose. The City
Council has authorized the Deputy City Manager for that purpose.
Unassigned - This category is for any balances that have no restrictions placed upon them
53
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
L. Spending Policy
Government -Wide Financial Statements and the Proprietary Fund Financial Statements
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.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and
unassigned fund balances are available, the City's policy is to apply in the following order, except for
instances wherein an ordinance specifies the fund balance:
➢ Restricted
➢ Committed
➢ Assigned
➢ Unassigned
M. 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.
N. 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.
54
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
2. CASH AND INVESTMENTS
A. Cash and Investments
Cash and investments at June 30, 2012, are classified in the accompanying financial statements as
follows:
Cash and investments
Cash and investments
with fiscal agent
Total
Government -Wide Statement of Net Assets
Fiduciary Funds
Governmental Business -Type Statement of
Activities Activities Total Net Assets Total
$ 156,811,544 $ 2,571,906 $ 159,383,450 $ 8,979,256 $ 168,362,706
2,958,760 2,958,760
$ 156,811,544 $ 2,571,906 $ 159,383,450 $ 11,938,016 $ 171,321,466
Cash and investments consisted of the following at June 30, 2012:
Cash and cash equivalents:
Cash on hand
Deposits with financial institutions
Total cash and cash equivalents
Investments:
US Treasury Securities
Federal Agencies
Money Markets
Certificates of Deposit
Corporate Securities
Local Agency Investment Fund
L.A. County Pool (LACPIF)
Total investments
Total cash and investments
$ 4,398
322,769
327,167
22,042,809
60,371,968
7,787,746
1,017,593
30,489,682
44,839,640
1,486,101
168,035,539
$ 168,362,706
The carrying amounts of the City's demand deposits were $322,769 at June 30, 2012. Bank balances before
reconciling items were $576,650 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.
55
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
2. CASH AND INVESTMENTS, Continued
B. Investments Authorized by the California Government code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies
certain provisions of the California Government Code (or the City's investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not
address investments of debt proceeds held by bond trustees that are governed by the provisions of debt
agreements of the City, rather than the general provisions of the California Government Code or the
City's investment policy.
* - Excluding amounts held by bond trustees that are not subject to California Government Code restrictions
56
Maximum
Percentage or
Maximum
Amount of
Investment in
Authorized Investment Type
Maximum Maturity
Portfolio *
One Issuer
Local Agency Bonds
5 years
None
None
U.S. Treasury Obligations
5 years
None
None
State of California Obligations
5 years
None
None
CA Local Agency Obligations
5 years
None
None
U.S. Government Sponsored Enterprise Securities
5 years
None
None
Banker's Acceptances
180 days
40%
30%
Commercial Paper
270 days
25%
10%
Negotiable Certificates of Deposit
5 years
30%
None
Repurchase Agreements
1 year
None
None
Medium -Tenn 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
$50M
None
* - Excluding amounts held by bond trustees that are not subject to California Government Code restrictions
56
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements,
rather than the general provisions of the California Government Code or the City�s investment policy.
The table below identifies the investment types that are authorized for investments held by bond
trustees. The table also identifies certain provisions of these debt agreements that address interest rate
risk, credit risk, and concentration of credit risk.
Maximum
Percentage
Maximum or Amount of
Authorized Investment Type Maturity Portfolio *
U.S. Treasury Obligations
Money Market Mutual Funds
Local Agency Investment Fund (LAIF)
D. Disclosures Relating to Interest Rate Risk
Maximum
Investment
in One
Issuer
5 years
None
None
5years
15%
10%
Not Applicable
$50M
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, 2012, the City had the following investment maturities:
Investment
US Treasury securities
Federal Agencies
Money Market
Certificates of Deposit
Corporate Securities
Local Agency Investment Fund
L.A. County Pool (LACPIF)
Total
Investment Maturities (In Years)
Fair Value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5
$ 22,042,809 $
6,499,370
$ - $ 5,309,467
60,371,968
19,387,852
6,580,998 8,966,625
7,787,746
7,787,746
- -
1,017,593
1,017,593
- -
30,489,682
10,140,736
8,091,425 10,922,375
44,839,640
44,839,640
- -
1,486,101
1,486,101
- -
$ 168,035,539 $
91,159,038
$ 14,672,423 $ 25,198,467
57
$ 8,567,604 $ 1,666,368
14,361,542 11,074,951
1,248,341 86,805
$ 24,177,487 $ 12,828,124
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
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
58
Moody's
S&P's
% of Investments
Credit
Credit
Sub-
with Interest
Investment Type
Rating
Rating
Total
Rate Risk
US Treasury Securities
AAA
AA+
-
13.12%
Federal Agencies
AAA
AA+
-
35.93%
Money Market
AAA
AAA
-
4.63%
Certificates of Deposit
Not Rated
Not Rated
-
0.61%
Local Agency Investment Fund
Not Rated
Not Rated
-
26.68%
L.A. County Pool (LACPIF)
AAA
AAA
-
0.88%
Corporate Securities:
Bank of New York
Al
A
0.70%
-
Bank of Nova Scotia
P-1
A-1
1.16%
-
BlackmckInc.
Al
A+
0.61%
-
Berkshire Hathaway
AA2
AA+
0.93%
-
Chevron Corp.
AAl
AA
0.69%
-
Coca Cola
AA3
A+
0.75%
-
EbayInc.
A2
A
0.74%
-
General Electric
Al
AA+
2.87%
-
HSBC USA Inc.
A2
A+
0.54%
-
IBM Corp.
AA3
AA-
0.88%
-
John Deere Capital Corp.
A2
A
0.12%
-
JPMorgan
A2
A
0.93%
-
Lehman Brothers
Not Rated
Not Rated
0.27%
-
Northem Trust Corp.
Al
A+
0.54%
-
Pepsico Inc.
AA3
A-
0.72%
-
Pfizer
Al
AA
0.50%
-
United tech Corp.
A2
A
0.05%
-
USBankcorp
AA3
A
0.72%
-
Wal-Mart
AA2
AA
0.93%
-
Walt Disney Company
A2
A
0.49%
-
Wells Fargo Company
Al
A+
0.79%
-
Subtotal
18.15%
Total
100.00%
58
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
2. CASH AND INVESTMENTS, Continued
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 $ 19,362,077 10.29%
Federal Home Loan Bank U.S. Government Sponsored
Enterprise Securities $ 11,324,490 6.02%
Federal Home Loan Mortgage U.S. Government Sponsored
Corporation Enterprise Securities $ 13,366,515 7.11%
Federal Farm Credit Bank U.S. Government Sponsored
Enterprise Securities $ 11,271,682 5.99%
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, 2012, the City deposits (bank balances) were
insured by the Federal Depository Insurance Corporation or collateralized as required under California
Law.
59
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
2. CASH AND INVESTMENTS, Continued
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 $50,000,000
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, 2012, 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, 2012, the City had $44,839,640 invested in LAIF, which had invested 3.47% of the pool
investment funds in Structured Notes and Asset -Backed securities. The LAIF fair value factor of
1.001219643 was used to calculate the fair value of the investments in LAIF from their amortized cost
basis.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in
accordance with State statute.
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 any time 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.
As of June 30, 2012, the City had $1,486,101 invested in LACPIF. The LACPIF fair value factor of
1.003065187 was used to calculate the fair value of the investments in LACPIF from their amortized cost
basis.
60
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
3. 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 $2,201,117 at June 30,
2012, has been offset by deferred revenue in other governmental funds, since these loans are not available to
finance current expenditures.
4. CAPITAL ASSETS
A. Government -Wide Financial Statements
At June 30, 2012, the City's capital assets consisted of the following:
Non -depreciable assets:
Land
Construction -in -progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Infrastructure
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
Infrastructure
Total accumulated depreciation
Total depreciable assets, net
Total capital assets, net
Governmental
Business -Type
Activities
Activities
Total
$ 122,169,150
$ 15,087,880
$ 137,257,030
13,594,441
2,875,594
16,470,035
135,763,591
17,963,474
153,727,065
29,556,368
7,261,748
36,818,116
47,486,762
41,483,799
88,970561
12,157,484
42,230,131
54,387,615
834,960,132
-
834,960,132
924,160,746
90,975,678
1,015,136,424
(9,297,908)
(769,076)
(10,066,984)
(13,219,361)
(7,508,999)
(20,728,360)
(10,073,869)
(26,882,437)
(36,956,306)
(250,211,610)
-
(250,211,610)
(282,802,748)
(35,160,512)
(317,963,260)
641,357,998
55,815,166
697,173,164
$ 777,121,589
$ 73,778,640
$ 850,900,229
61
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
4. CAPITAL ASSETS, Continued
B. Governmental Activities
The following is a summary of changes in the capital assets for governmental activities during the fiscal
year:
Governmental activites:
Non -depreciable assets:
land
Construction -in -progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Infrastructure
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
infrastructure
Total accumulated depreciation
Total depreciable assets, net
Total capital mels, net
Governmental Activities
Balance Transferred to Balance
July 1, 2011 Additions Deletions Redasses successor Trust June 30, 2012
$ 123,614,634 $
1,472,077 $
- $ (2,917,561) $
- $ 122,169,150
6,477,297
8,982,919
- 1,762,812
(3,628,597) 13,594,441
130,091,931
10,454,996
- (1,154,749)
(3,628587) 135,763,591
Internal service funds depreciation charged to programs
282,922
Allocated depreciation
3,078,021
29,141,818
249,532
- 165,018
- 29,556,369
46,537,031
-
- 949,731
- 47,486,762
11,427,789
729,695
- -
- 12,157,484
821,903,999
13,208,588
(192,455) 40,000
- 834,960,132
909,010,637
14,187,815
(192,455) 1,154,749
- 924,160,746
(8,117,320) (1,180,588) - - - (9,297,908)
(12,155,939) (1,063,422) - - - (13,219,361)
(9,239,858) (834,011) - - - (10,073,869)
(233,367,372) (16,844,238) - - - (250,211,610)
(262,880,489) (19,922,259) - (282,802,748)
646,130,148 (5,734,444) (192,455) 1,154,749 - 641,357,999
$ 776,222,079 $ 4,720,552 $ (192,455) $ - $ (3,628,587) $ 777,121,589
Depreciation expense was charged to functions/ programs of governmental activities for the fiscal year
ended June 30, 2012 as follows:
Governmental Activities
General government
$ 512,186
Public safety
1,980,729
Public works
247,716
Parks and recreation
48,140
community development
6,328
Internal service funds depreciation charged to programs
282,922
Allocated depreciation
3,078,021
Unallocated infrastructure depreciation
16,844,238
Total depreciation expense
$ 19,922,259
62
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
4. CAPITAL ASSETS, Continued
C. Business -Type Activities
The following is a summary of changes in the capital assets for business -type activities during the fiscal
year:
Business4ype activities:
Non -depreciable assets:
Land
Construction -m -progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Budding and improvements
Equipment
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
Total accumulated depreciation
Total depreciable assets, net
Capital assets, net
Business -Type Activities
Balance Balance
July 1, 2011 Additions Deletions Recluses June 30, 2012
$ 15,087,880 $ - $ - $ - $ 15,087,880
6,957,970 418,313 - (4,500,689) 2,875,594
22,045,850 418,313 - (4,500,689) 17,963,474
1,894,765 866,294
- 4,500,689 7,261,748
41,483,799 _
_ _ 41,483,799
41,065,856 1,164,275
- - 42,230,131
84,444,420 2,030,569
- 4,500,689 90,975,678
(429,551) (339,525) - - (769,076)
(6,625,651) (883,348) - - (7,508,999)
(24,018,200) (2864,237) - - (26,882,437)
(31,073,402) (4,087,110) - - (35,160,512)
53,371,018 (2,056,541) - 4,511009 55,815,166
$ 75,416,868 $ (1,638,228) $ - $ - $ 73,778,640
Depreciation expense for business -type activities for the fiscal year ended June 30, 2012 was charged as
follows:
Transit
Total depreciation expense
63
$ 4,087,110
$ 4,087,110
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT
The following is a summary of long-term debt transactions of the City for the year ended June 30, 2012:
Transferred Classification
Balance to Successor Balance Due Within Due More
July 1, 2011 Additions Deletions Trust June 30, 2012 One Year Than One Year
Governmental Activities:
Lease Revenue Bonds:
Series 2007 $ 12,805,000 $ - $ (280,000) $ - $ 12,525,000 $ 295,000 $ 12,230,000
Plus deferred amount for issuance
premium
93,5%
- (3,658)
- 89,938
-
89,938
Total Lease Revenue Bonds
12,898,596
- (283,658)
- 12,614,938
295,000
12,319,938
For issuance discounts
(149,316)
- 3,226
146,090
Total Tax Allocation Bonds
Certificates of Participation:
- (556,774)
(36,938,910)
2,414,123
Claims payable
40,000
Refunding, Series 2005
12,700,000
- (1,090,000)
- 11,610,000
1,125,000
10,485,000
Series 2007
15,525,000
- (35,000)
- 15,490,000
60,000
15,430,000
Less deferred amounts:
For issuance discounts
(305,205)
- 32,142
- (273,063)
-
(273,063)
Total Certificates of Participation
27,919,795
- (1,092,858)
- 26,826,937
1,185,000
25,641,937
Tax Allocation Bonds
Series 2008
29,040,000
- (435,000)
(28,605,000)
Housing Set -Aside
8,605,000
- (125,000)
(8,480,000)
Less deferred amounts:
-
(373,786)
- 1,040,000
For issuance discounts
(149,316)
- 3,226
146,090
Total Tax Allocation Bonds
37,495,684
- (556,774)
(36,938,910)
Capital leases payable
-
252,068
(9,651)
242,417
44,570
197,847
Loans payable
1,413,786
-
(373,786)
- 1,040,000
230,000
$10,000
Compensated absences
2,625,890
1,697,330
(1,637,683)
- 2,685,537
271,414
2,414,123
Claims payable
40,000
10,000
-
- 50,000
-
50,000
Total
$ 82,393,751
$ 1,959,398
$ (3,954,410)
$ (36,938,910) $ 43,459,829
$ 2,025,984
$ 41,433,845
Governmental Activities
Lease Revenue Bonds - Series 2007
On January 16, 2007, the Authority issued $13,785,000 Lease Revenue Bonds, Series 2007. Concurrent with
this bond issuance, the Authority entered into a lease and lease -back arrangement with the City whereby
the Authority used the proceeds of the bond issuance to make a lump -sum lease payment to the City. In
return, the City will make lease -back payments to the Authority sufficient to cover the principal and
interest due on the Series 2007 Bonds. The property subject to the lease and lease -back arrangement is City
Hall. The City used the proceeds from the lump -sum lease payment to make a valuation deposit with the
Los Angeles County Superior Court in connection with the acquisition of right-of-ways.
0
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Lease Revenue Bonds - Series 2007, Continued
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 of each year.
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 $20,470,282 as of June 30, 2012. For the
current year, principal and interest paid on the Bonds was $821,804 and property tax increment net
revenues were $29,649,284. The Bonds required 2.8% of net revenues. The outstanding balance of the Bonds
was $12,525,000 at June 30, 2012.
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2013
$ 295,000
$ 527,804
$ 822,804
2014
310,000
513,054
823,054
2015
325,000
500,654
825,654
2016
335,000
487,654
822,654
2017
350,000
474,254
824,254
2018-2022
1,965,000
2,050,270
4,015,270
2023-2027
2,385,000
1,723,064
4,108,064
2028-2032
2,930,000
1,179,028
4,109,028
2033-2037
3,630,000
489,500
4,119,500
Total
$ 12,525,000
$ 7,945,282
$ 20,470,282
The following is a summary of the unamortized premiums and discounts outstanding at June 30, 2012:
Balance
July 1, 2011 Additions Deletions June 30, 2012
$ 935% $ - $ (3,658) $ 89,938
Amortization expense was $3,658 for June 30, 2012.
65
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. 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
Interest
Total
2013
$ 1,125,000
$ 404,223
$ 1,529,223
2014
1,160,000
368,085
1,528,085
2015
1,195,000
329,359
1,524,359
2016
1,235,000
287,581
1,522,581
2017
1,280,000
242,768
1,522,768
2018-2021
5,615,000
455,666
6,070,666
Total
$ 11,610,000
$ 2,087,682
$ 13,697,682
Certificates of Participation - Series 2007
On December 12, 2007, the Authority issued $15,525,000 in Certificates of Participation to provide financing
for the costs of acquiring open space lands, parks, and parkland in accordance with the City's open space,
park and parkland programs, purchase a reserve fund surety and fund the costs of delivery of the
Certificates. The Certificates are backed by lease payments to be made by the City to the Authority for the
use and occupancy of the Aquatic Center and Sports Complex.
The Certificates were issued at a discount of $80,479, 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.
66
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Certificates of Participation - Series 2007, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2013
$ 60,000
$ 711,051
$ 771,051
2014
90,000
708,051
798,051
2015
120,000
703,851
823,851
2016
150,000
698,451
848,451
2017
185,000
691,752
876,752
2018-2022
1,465,000
3,307,769
4,772,769
2023-2027
2,525,000
2,884,634
5,409,634
2028-2032
305,000
2,153,571
6,038,571
2033-2037
5,635,000
1,032,770
6,667,770
2038
1,375,000
32,656
1,407,656
Total
$ 15,490,000
$ 12,924,556
$ 28,414,556
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, 2012 for both, the Series 2005 and 2007 Certificates:
Balance
Balance
July 1, 2011 Additions Deletions June 30, 2012
$ (305,205) $ - $ 32,142 $ (273,063)
Amortization expense was $32,142 for June 30, 2012.
Tax Allocation Bonds - Series 2008
On June 12, 2008, the Redevelopment Agency issued the Santa Clarity 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, 2011 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.
67
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Tax Allocation Bonds - Series 2008, Continued
Effective January 31, 2012, the Redevelopment Agency was dissolved by the State and the Tax Allocation
Bonds, Series 2008 outstanding principal of $28,605,000 and interest of $26,899,444 on that date became the
responsibility of the Successor Agency for continued payments according to the existing maturity schedule.
During the current year, principal and interest paid on the Bonds by the City was $435,000 and $677,674,
respectively and property tax increment net revenues were $1,745,075.
Tax Allocation Bonds - Housing Set -Aside
On June 2008, the Redevelopment 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 were 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.
Effective January 31, 2012, the Redevelopment Agency was dissolved by the State and the Tax Allocation
Bonds, Series 2008 outstanding principal of $8,480,000 and interest of $8,527,624 on that date became the
responsibility of the Successor Agency for continued payments according to the existing maturity schedule.
During the current year, principal and interest paid on the Bonds by the City was $125,000 and $203,878,
respectively and property tax increment net revenues were $408,269.
Both the Series 2008 and Housing Set -Aside tax allocation bonds had an unamortized discount outstanding
at January 31, 2012 of $146,090, which was transferred to the Successor Agency, after amortization in the
current year of $3,226 as follows:
Balance
Transferred to Balance
July 1, 2011 Additions Deletions Successor Trust June 30, 2012
$ (149,316) $ - $ 3,226 $ 146,090 $ -
3i
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Amortization expense was $5,530 for June 30, 2012.
Loans Payable
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, 2012 is $440,000.
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, 2012 is $457,000.
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, 2012 is $143,000.
69
Balance
Balance
Due within
Due in more
July 1, 2011 Additions
Deletions
June 30, 2012
one year
than one year
HUD Loans
1999 West Newhall
$ 570,000 $ -
$ (130,000)
$ 440,000
$ 130,000
$ 310,000
Boys and Girls Club
534,000 -
(77,000)
457,000
77,000
380,000
Scherzinger Lane
166,000 -
(23,000)
143,000
23,000
120,000
Total HUD Loans
1,270,000 -
(230,000)
1,040,000
230,000
810,000
2002 City Parking Lot
143,786 -
(143,786)
-
-
-
Total loans
$ 1,413,786 $ -
$ (373,786)
$ 1,040,000
$ 230,000
$ 810,000
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, 2012 is $440,000.
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, 2012 is $457,000.
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, 2012 is $143,000.
69
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Loans Payable, Continued
HUD Loans
Future loan payment requirements for the HUD loans are combined as follows:
Year Ending
June 30, Principal
2013
2014
2015
2016
2017
2018
Total
2002 City Parking Lot Loan
$ 230,000
230,000
280,000
100,000
100,000
100,000
$ 1,040,000
Interest
$ 35,756
29,186
21,335
14,220
8,605
2,891
$ 111,993
Total
$ 265,756
259,186
301,335
114,220
108,605
102,891
$ 1,151,993
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 loan was paid off during the year ended June 30, 2012.
Capital Lease
On February 28, 2012, the City Council approved a lease -purchase agreement with One Source Financial
Corp for two seven -bin sorters for the Canyon Country and Valencia library branches in the amount of
$252,068. The lease agreement has sixty monthly payments of $4,825.30 with an interest rate of 6%. The
final payment is due May 15, 2017. The lease was assigned by One Source Financial Corp. to the Bank of
the West.
The assets acquired through the capital lease are as follows:
Equipment
Less: Accumulated depreciation
Total
70
$ 252,068
(8,402)
$ 243,666
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
5. LONG-TERM DEBT, Continued
Governmental Activities, Continued
Capital Lease, Continued
Year Ending
June 30,
Principal
Interest
Total
2013
$ 44,570
$ 13,333 $
57,903
2014
47,320
10,584
57,904
2015
50,238
7,665
57,903
2016
53,337
4,567
57,904
2017
46,952
11301
48,253
Total
$ 242,417
$ 37,450 $
279,867
Compensated absences
There is no fixed payment schedule for earned but unpaid compensated absences.
6. DEPOSITS PAYABLE
The City collects deposits from developers for improvements within the City. The deposits can be in the
form of donated improvements or cash -in -lieu payments. Major infrastructure improvements, such as
bridges and thoroughfares, are donated to the City. After acceptance of the project by the City, developers
receive a credit if the cost of the improvements exceeds the district fee obligation. The developers may use
the credits to offset other future district fee obligations and the credits remain a liability of the City until
they are drawn down. The balance of deposits payable at June 30, 2012 is $38,990,896.
7. INTERFUND TRANSACTIONS
Due To/Due From - At June 30, 2012, the City had the following short-term interfund receivables and
payables.
F
0
w
M
s
Non -Major Governmental Funds
uFiduciary Fund
0
0 Total
Due From Other Funds
General Total
$ 3,051,261 $ 3,051,261
638,993 638,993
$ 3,690,254 $ 3,690,254
The interfund payables balance represents routine and temporary cash flow assistance from the General
Fund until the amounts receivable from other governments are collected to reimburse eligible expenditures.
71
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
7. INTERFUND TRANSACTIONS, Continued
Long -Term Advances - At June 30, 2012, the City had the following interflmd long-term advances:
Advances To Other Fonds
Major Funds Intemal Service
Bridge and Developer Self Insurance
b General Thoroughfare Fees Fund Total
Advances between funds are to fund capital projects. Repayments will be funded through future developer
fees and property taxes.
Transfers - At June 30, 2012, the City had the following transfers:
Transfers Out
Major Funds
Landscape Other Transit Internal
Bridge & Developer Maint. Governmental Enterprise Service
General Fund Thoroughfare Fees Ditrict kl Funds Fund Funds Total
Transfers In
General Fund $
Governmental Funds:
7,136 $ 5,583 $ 86,766 $ 1,680,022
$ 232,124 $ 16,103
$ 9,377,734
Public Library
Bridge and Thoroughfare
$ 527,729 $ 23,311,323 $
115,527 $
925,223 $ 24,879,802
y
Public Library
10,488,382 -
-
- 10,488,382
Other Governmental Funds
RDA Successor Agency Trust
7,859,763 -
5,459,133
- 13,318,896
<
Total
$ 18,875,874 $ 23,311,323 $
5,574,660 $
925,223 $ 48,687,080
Advances between funds are to fund capital projects. Repayments will be funded through future developer
fees and property taxes.
Transfers - At June 30, 2012, the City had the following transfers:
Transfers Out
Major Funds
Landscape Other Transit Internal
Bridge & Developer Maint. Governmental Enterprise Service
General Fund Thoroughfare Fees Ditrict kl Funds Fund Funds Total
Transfers In
General Fund $
7,350,000 $
7,136 $ 5,583 $ 86,766 $ 1,680,022
$ 232,124 $ 16,103
$ 9,377,734
Public Library
-
- - - 760,240
- -
260,240
Landscape Maint. District p1
50,000
- - - -
- -
50,000
Other Governmental Funds
2,848,860
- - 64,080 3,924,830
12,930 -
6,850,700
Transit Enterprise
-
- - - 7,089,253
- -
7,089,253
Internal Service Funds
6,443,678
- - - -
- -
6,443,678
Total $
16,692,538 $
7,136 $ 5,583 $ 150,846 $ 12,954,345
$ 245,054 $ 16,103
1 30,071,605
Transfers provide funding for capital projects, capital acquisitions, and debt service.
72
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
8. INDIVIDUAL FUND DISCLOSURES
A. Deficit Fund Balances
Funds which have a deficit fund balance at June 30, 2012, are as follows:
The City plans to remove these deficits through transfers from the General Fund, receipt of developer
fees and receipt of deferred grant revenues. The RDA Successor Agency Private Purpose Trust deficit
will be reduced with receipt of property tax increment and potential asset sales.
B. Expenditures In Excess Of Appropriations
For the year ended June 30, 2012, expenditures exceeded appropriations in the following
programs/ functions (legal level of budgetary control) of the respective funds:
Deficit Fund
Fund
Balance
Major Funds:
Appropriations
Bridge and Thoroughfare
$ (21,818,543)
Developer Fee
(878,828)
Public Library
(4,757,359)
Other Governmental Funds:
$ 751,427
State Park
(85,937)
Miscellaneous Grants
(291,869)
Fiduciary Fund:
RDA Successor Agency Private Purpose Trust
(36,999,585)
The City plans to remove these deficits through transfers from the General Fund, receipt of developer
fees and receipt of deferred grant revenues. The RDA Successor Agency Private Purpose Trust deficit
will be reduced with receipt of property tax increment and potential asset sales.
B. Expenditures In Excess Of Appropriations
For the year ended June 30, 2012, expenditures exceeded appropriations in the following
programs/ functions (legal level of budgetary control) of the respective funds:
9. DEFINED BENEFIT PENSION PLAN
Plan Description:
The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple -
employer public employee defined benefit pension plan. CaIPERS provides retirement and disability
benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CaIPERS
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 CaIPERS' annual financial report may be obtained from their executive office: 400 P Street,
Sacramento, CA 95814.
73
Excess Expenditures
Funds
Appropriations
Expenditures
over Appropriations
Bridge and Thoroughfare Special Revenue
Public Works
$ 751,427
$ 888,011
$ 136,584
Public Library Special Revenue
Interest and fiscal charges
150,000
182,006
32,006
Non -Major Governmental Funds:
Federal Grants Special Revenue
Public works
5,690
5,768
78
9. DEFINED BENEFIT PENSION PLAN
Plan Description:
The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple -
employer public employee defined benefit pension plan. CaIPERS provides retirement and disability
benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. CaIPERS
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 CaIPERS' annual financial report may be obtained from their executive office: 400 P Street,
Sacramento, CA 95814.
73
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
9. DEFINED BENEFIT PENSION PLAN, Continued
Funding Policy:
Participants hired before April 9, 2011 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. Participants hired
on or after April 9, 2011 are required to contribute 7% of their annual covered salary. The employee makes
the contributions required for their account. The City is required to contribute at an actuarially determined
rate; the rate for the year ended June 30, 2012, was 12.98% for non -safety employees. The contribution
requirements of plan members and the City are established and maybe amended by CalPERS.
Annual Pension Cost:
For 2012, the City's annual pension cost of $5,186,634 for CalPERS was equal to the City's required and
actual contribution. The required contribution was determined as part of the June 30, 2010, 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-one 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 3.55% 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 CalPERS. 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 plan's 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, 2011, the most recent actuarial valuation date available, the plan was 82.8% funded. The
actuarial accrued liability for benefits was $99.4 million, and the actuarial value of assets was $82.3 million,
resulting in an unfunded actuarial accrued liability (UAAL) of $17.1 million. The covered payroll (annual
payroll of active employees covered by the plan) was $25.4 million, and the ratio of the UAAL to the
covered payroll was 67.2%.
Additional plan trend information for the prior two years is provided in tabular format in the Required
Supplementary Information section.
74
Pension Cost
of APC Net Pension
Fiscal Year
(APC)
Contributed Obligation
6/30/2010
$ 5,036,747
100% $ -
6/30/2011
4,922,978
100%
6/30/2012
5,186,634
100%
Funded Status and Funding Progress:
As of June 30, 2011, the most recent actuarial valuation date available, the plan was 82.8% funded. The
actuarial accrued liability for benefits was $99.4 million, and the actuarial value of assets was $82.3 million,
resulting in an unfunded actuarial accrued liability (UAAL) of $17.1 million. The covered payroll (annual
payroll of active employees covered by the plan) was $25.4 million, and the ratio of the UAAL to the
covered payroll was 67.2%.
Additional plan trend information for the prior two years is provided in tabular format in the Required
Supplementary Information section.
74
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
10. POST EMPLOYMENT HEALTH BENEFITS
Plan Description. City retirees, spouses and eligible dependents, receive health plan coverage through the
CalPERS 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. A separate financial report is not
issued.
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, 2011 Total
Active employees 351
Retirees 43
Total 394
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. During fiscal year 2011-12, the
City contributed a total of $20,343,105 comprised of $418,623 in cash subsidies (current year pay-as-you-go
amount) plus $19,924,482 to a OPEB Trust fund.
The City conducted an actuarial valuation to determine the City's obligation to fund Other Post -
Employment Benefits (OPEB) and determined that it served the City's interests to prefund those benefits.
In December 2011, the City Council approved Resolution 11-89 adopting the Public Agencies Post -
Retirement Health Care Plan Document and Trust Agreement. The OPEB Trust is a tax qualified
irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to pre -fund OPEB
as described in GASB Statement 45. The Plan Trustee is Union Bank of California, N.A., and Public
Agencies Retirement Services (PARS) is the Trust Administrator. The City elected a discretionary
investment approach with a moderate investment objective strategy. The primary objective is to maximize
total Plan return, subject to the risk and quality constraints established, The Plan's targeted rate of return is
7.0%. The asset allocation ranges for this objective are 0-20% Cash, 40-60% Fixed Income, and 40-60%
Equity.
For fiscal year 2011-2012, the City contributed, on an individual basis, for employees and retirees up to the
following amounts:
Retirees
Employees
Unrepresented $12,199
$14,082
SEIU Loca1347 $12,199
$14,082
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.
75
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
10. POST EMPLOYMENT HEALTH BENEFITS, Continued
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 Asset for the Plan:
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
asset for 2012 was as follows:
Total
Annual required contribution
$ 2,126,000
Interest on net OPEB obligation
853,593
Adjustment to annual required contribution
(600)
Annual OPEB cost (expense)
2,978,993
Contributions made outside of a trust
418,623
Contributions to irrevocable trust
19,924,482
Decrease in net OPEB obligation
17,364,112
Net OPEB obligation - beginning of year
(12,194,175)
Net OPEB asset - end of year
$ 5,169,937
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
asset for 2012 was as follows:
Funded Status and Funding Progress. As of most recent actuarial valuation date on July 1, 2010, the plan
was zero percent funded. The Actuarial Accrued Liability for benefits was $41,425,000, and the actuarial
value of assets was $0, resulting in an UAAL of $41,425,000. The covered payroll (annual payroll of active
employees covered by the plan) was $25,094,000 and the ratio of UAAL to the covered payroll was 165.08%.
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.
76
OPEB
OPEB
Year
OPEB
Annual
Cost
Asset
Ended
Cost
Contribution
Contributed
(Obligation)
6/30/2010 $
4,141,291
$ 328,089
7.9%
$ (7,514,175)
6/30/2011
5,064,000
384,000
7.6%
(12,194,175)
6/30/2012
2,978,993
20,343,105
682.9%
5,169,937
Funded Status and Funding Progress. As of most recent actuarial valuation date on July 1, 2010, the plan
was zero percent funded. The Actuarial Accrued Liability for benefits was $41,425,000, and the actuarial
value of assets was $0, resulting in an UAAL of $41,425,000. The covered payroll (annual payroll of active
employees covered by the plan) was $25,094,000 and the ratio of UAAL to the covered payroll was 165.08%.
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.
76
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
10, POST EMPLOYMENT HEALTH BENEFITS, Continued
In the July 1, 2010, actuarial valuation, the entry age actuarial cost method was used. The actuarial
assumptions include a 4.25% investment rate of return which is based on the expected return on funds
invested by CaIPERS, and an annual healthcare cost trend rate of 9.70% initially and reduced by decrements
of 0.6%to an ultimate rate of 5.0% thereafter. The actuarial assumption for inflation was 3.00%, and the
aggregate payroll increase was 3.25% used in the actuarial valuation. 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, 2010, was 28 years.
11. CLASSIFICATION OF FUND BALANCES
The City has adopted the provisions of GASB Statement No. 54 Fund Balance and Governmental Fund
Type Definitions. GASB 54 establishes Fund Balance classifications based largely upon the extent to which a
government is bound to observe constraints imposed upon the use of the resources reported in
governmental funds. The Governmental Fund statements conform to this new classification as presented
below.
Special Revenue Funds
landscape Non -Major
General Bridge and Developer Public Maintenance Govenunental
Fund Thoroughfare Fees Library District Rl Funds Total
Nonspendable
Prepaid items $ 26,476 $ - $ - $ - $ - $ - $ 26,476
Advances to other finds 18,875,874 23,311,323 5,574,660 - - - 47,761,857
Total nonspendable 18,902,350 23,311,323 5,574,660 - - - 47,788,333
Restricted
Open space preservation - -
- - - 11,506,330
11506,330
Air qty - -
- - - 42798
42798
Special assessments - -
- _ _ 4,716,860
4,716,860
Drainage - -
- - - 6,751,657
6,751,657
landscape maintenance - -
- - 20,020,391 -
20,020,391
Public library - -
- - - 1,519
1,519
Tourismmarketing _ _
- - - 126,698
126,698
Older purposes - -
- - - 3,749,712
3,749,712
Total restricled - -
- - 20,020,391 26,895,574
46,915,965
Committed
OPER 66,257 -
- - - -
66,257
Total committed 66,257 -
- - - -
66,257
Assigned
Other purposes
309,078 - -
- - -
309,078
Public financing
- - -
- - 457,487
457,487
Capital Projects
_ _ _
- _ 2817,825
2,817,825
Total assigned
309,078 - -
- - 3,275,312
3,584,390
Unassigned
50,664,338 (45,129,866) (6,453,488)
(4,757,359) - (377,806)
(6,054,181)
Told fund balances
$ 69,942023 $ (21,818,543) $ (878,828) $
(4,757,359) $ 20,020,391 $ 29,793,080 $
92300,764
&A
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
12. 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 $17,000 per
participant per year. Employee contributions to certain plans are voluntary. During the year ended June 30,
2012, there were 852 participants in the plans. The City contributions totaled $184,450, and employees'
contributions totaled $1,748,344.
13. 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, 2012, $40,000 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.
The annual member contribution is $520,125 for the Property/ Liability Program and $435,092 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, 2012. 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, 2012.
Changes in the reported claims liability since June 30, 2010 resulted in the following:
Liability as of June 30, 2010
$ 50,000
Claims and changes in estimates during the year ended June 30, 2011
(10,000)
Claims and payments during the year ended June 30, 2011
-
Liability as of June 30, 2011
$ 40,000
Claims and changes in estimates during the year ended June 30, 2012
10,000
Claims and payments during the year ended June 30, 2012
-
Liability as of June 30, 2012
$ 50,000
78
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
13. SELF INSURANCE, Continued
SDRMA has published its own financial report for the year ended June 30, 2012, which can be obtained
from SDRMA, 1112 I Street, Suite 300, Sacramento, California 95814. Summary information on SDRMA is
as follows:
Total Revenues
Total Expenses
Total Assets
Total Liabilities
Total Equity
14. NO COMMITMENT DEBT
1915 Act Limited Obligation Improvements Bonds
Year ended
June 30, 2012
$
46,647,494
$
38,734,846
$
102,675,963
m
$
43,880,783
$
58,795,180
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, 2012, was $435,000.
B. On January 13, 2001, $790,000 of 1915 Act Limited Obligation Improvement Bonds (1915 Vermont
Drive/Everett Drive Bonds) for the Vermont Drive/Everett Drive Improvement Assessment District
(Assessment District) were issued. The 1915 Vermont Drive/Everett Drive Bonds are not a general
obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the
payment of the bonds. The source of the debt service is from the property assessments within the
Assessment District. The principal amount of the debt outstanding at June 30, 2012, was $510,000.
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, 2012, was $16,650,000.
79
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
15. SANTA CLARITA WATERSHED RECREATION AND CONSERVANCY AUTHORITY
In June 1992, the City entered into a joint powers agreement with the Santa Monica Mountains Conservancy
(Conservancy) to create the Santa Clarita Watershed Recreation and Conservancy Authority (the Watershed
Authority). The purpose of the Watershed Authority is to acquire, develop and conserve additional park
and open space lands, including water -oriented recreation and conservation projects. The governing board
consists of two representatives from the Conservancy and two from the City.
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, 2012, the City did not make any
contributions. Financial statements of the Watershed Authority may be obtained at the City's administrative
offices. Condensed financial information as of June 30, 2012 is presented below:
Total Revenues
Total Expenditures
Total Assets
Total Liabilities
Total Equity
16. SANTA CLARITA PUBLIC TELEVISION AUTHORITY
Year ended
June 30, 2012
$ 138
$ 5,925
$ 5,637,145
$ 5,637,145
In July 2009, the City entered into a joint powers agreement with the William S. Hart School District
(District) to create the Santa Clarita Public Television Authority (the SCPTA). The purpose of the SCPTA is
to provide a forum for public, educational and governmental television programs by the members and by
individuals and organizations in the community. The governing board consists of one representative from
the District and one from the City.
The City performs administrative functions for the SCPTA, and may, at the SCPTA's request, make annual
contributions. For the year ended June 30, 2012, the City contributed $107,398. Financial statements of the
SCPTA may be obtained at the City's administrative offices.
Condensed financial information as of June 30, 2012 is presented below:
Total Revenues
Total Expenditures
Total Assets
Total Liabilities
Total Equity
80
Yearended
June 30, 2012
$ 107,240
$ 107,511
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
17. COMMITMENTS AND CONTINGENCIES
The City has active construction projects as of June 30, 2012. At year-end, the City's commitments with
contractors for infrastructure projects are as follows:
Project
Roads
Bridges
Signals
Medians
Total commitments
Encumbrances
Commitment
$ 3,922
489,446
50
245,690
$ 739,108
The City utilizes encumbrance accounting as a means of controlling expenditures. Under this method,
funds are encumbered when purchase orders, contracts and other commitments are signed or approved by
authorized City officials. Such outstanding commitments at year-end do not constitute expenditures or
liabilities.
GASB Statement No. 54 provides additional guidance on the classification within the fund balances section
of amounts that have been encumbered. Encumbrances of balances within the governmental funds are
classified as either nonspendable, committed, restricted or assigned and are included in the respective
functional categories. These encumbrances are not separately classified in the financial statements, and are
summarized at June 30, 2012 as follows:
Amount
General Fund $ 309,078
Other governmental funds 13,742,910
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 30,201Z 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.
81
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
18. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 27 ("the Bill") that provides
for the dissolution of all redevelopment agencies in the State of California. This action impacted the
reporting entity of the City that previously had reported a redevelopment agency within the reporting
entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local
government will agree to serve as the "successor agency" to hold the assets until they are distributed to
other units of state and local government On January 24, 2012, the City Council elected to become the
Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City
resolution number 12-3.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of
California cannot enter into new projects, obligations or commitments. Subject to the control of a newly
established oversight board, remaining assets can only be used to pay enforceable obligations in existence at
the date of dissolution (including the completion of any unfinished projects that were subject to legally
enforceable contractual commitments).
In future years, successor agencies will only be allocated revenue in the amount that is necessary to pay the
estimated annual installment payments on enforceable obligations of the former redevelopment agency
until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets
have been liquidated.
The Bill directs the State Controller of the State of California to review the proprietary of any transfers of
assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the
public body that received such transfers is not contractually committed to a third party for the expenditure
or encumbrance of those assets, the State Controller is required to order the available assets to be
transferred to the public body designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment
agency due to the City in the amount of $13,318,896 are valid enforceable obligations payable by the
successor agency trust under the requirements of the Bill. The City's position on this issue is not a position
of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that
a legal determination may be made at a later date by an appropriate judicial authority that would resolve
this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on
December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to
operate as a legal entity as of February 1, 2012.
Prior to that date, the final seven months of the activity of the redevelopment agency continues to be
reported in the governmental funds of the City. After the date of the dissolution, the assets and activities of
the dissolved redevelopment agency are reported in a fiduciary fund (RDA Successor Agency Private
Purpose Trust Fund) in the financial statements of the City.
82
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
18. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued
The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012
(effectively the same date as of January 31, 2012) from governmental funds of the City to the fiduciary funds
was reported in the governmental funds as an extraordinary gain in the governmental fund financial
statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the RDA
Successor Agency Private Purpose Trust Fund as an extraordinary loss.
As part of the dissolution of the Agency, the outstanding Advances from the City to the Agency, including
accrued interest thereon, which were transferred to the RDA Successor Agency Private Purpose Trust Fund
were required to be revalued using LAIF interest rates during the periods the Advances were outstanding.
Accordingly, on January 31, 2012 the Agency recorded a $4,348,023 extraordinary gain due to the write
down on the Advances payable to the City's General Fund.
Because of the different measurement focus of the governmental funds (current financial resources
measurement focus) and the measurement focus of the trust funds (economic resources measurement
focus), the extraordinary gain recognized in the governmental funds was not the same amount as the
extraordinary loss that was recognized in the fiduciary fund financial statements.
The difference between the extraordinary gains recognized in the fund financial statements and the
extraordinary loss recognized in the fiduciary fund financial statement is reconciled as follows:
Total extraordinary gain reported in governmental funds - decrease to net assets
of the RDA Successor Agency Privte Purpose Trust Fund $ (8,317,116)
Capital assets recorded in the government -wide financial statements - increase to
net assets of the RDA Successor Agency Private Purpose Trust Fund 3,628,587
Deferred Charges (bond issuance costs) recorded in the government -wide
financial statements - increase to net assets of the RDA Successor Agency Private
Purpose Trust Fund
1,214,155
Long-term debt reported in the govemment-wide financial statements - decrease
to net assets of the RDA Successor Agency Private Purpose Trust Fund:
Tax Allocation Bond - Series 2008
(28,605,000)
Tax Allocation Bond - Housing Set -Aside
(8,480,000)
Unamortized bond discount
146,040
Net decrease to net assets of the RDA Successor Agency Private Purpose Trust
Fund as a result of initial transfers (equal to amount of extraordinary gain
reported in the govemment-wide financial statements of the City)
(40,413,284)
Less extraordinary gain reported in the governmental funds for the write down on
accrued interest on City Advances
4,348,023
Amount transferred to RDA Successor Agency Private Purpose Trust Fund $ (36,065,261)
83
City of Santa Clarita
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2012
19. SUBSEQUENT EVENTS
On October 10, 2012, the Successor Agency submitted the Low and Moderate Income Housing Fund
("LMIHF") Due Diligence Review ("DDR") to the California Department of Finance pursuant to Health and
Safety Code Section 34179.6(c). The purpose of the review was to determine the amount of cash and cash
equivalents available for distributing to the affected taxing entities. At the time the report was approved by
the Oversight Board and submitted to the Department of Finance, it was projected that the Successor
Agency had $402,766 to be distributed to taxing entities. The Department of Finance issued a letter to the
City dated November 9, 2012 determining that the Successor Agency had $5,855,293 in unencumbered
LMIHF cash and cash equivalents that is subject to distribution to the taxing entities. The Successor Agency
disagreed with the adjustment made by the Department of Finance and a meet and confer was held on
November 30, 2012. On December 15, 2012, the Successor Agency was notified that the Department of
Finance believes the Successor Agency has $3,005,293 available for distribution to taxing entities. On
January 11, 2013, the Department of Finance notified the Successor Agency that the amount due for
distribution to taxing entities has been revised to $451,742.
84
REQUIRED SUPPLEMENTARY
INFORMATION
naudited)
85
City of Santa Clarita
Required Supplementary Information (Unaudited)
For the year ended June 30, 2012
1. BUDGETARY INFORMATION
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in
the United States for the General Fund and each of the special revenue funds. 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 functions 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 the major special revenue fund
86
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2012
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - General Fund
Fund balance, July 1, 2011
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
Transfers out
Total charges to appropriations
Fund balance, June 30, 2012
Budgeted Amounts
Original Final
$ 83,690,219 $ 83,690,219
60,941,257
3,461,150
1,093,000
399,862
495,250
5,873,664
41,000
3,470,933
4,754,370
164,220,705
14,540,536
20,332,471
14,021,399
19,841,466
3,923,607
5,231,274
77,890,753
$ 86,329,952
87
Actual
Amounts
$ 83,690,219
61,727,000
63,389,240
3,651,150
4,097,709
1,093,000
1,205,900
311,513
487,798
508,000
560,384
5,821,535
6,776,268
139,078
234,739
3,470,933
3,496,092
9,440,361
9,377,734
169,852,789 173,316,083
Variance with
Final Budget
Positive/(Negative)
1,662,240
446,559
112,900
176,285
52,384
954,733
95,661
25,159
(62,627)
3,463,294
15,436,541
32,145,979
(16,709,438)
19,268,462
18,286,194
982,268
14,030,044
13,047,920
982,124
20,365,628
19,254,122
1,111,506
4,337,523
3,947,307
390,216
16,300,293
16,692,538
(392,245)
89,738,491
103,374,060
(13,635,569)
$ 80,114,298 $ 69,942,023 $ (10,172,275)
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2012
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund
88
Variance with
Budgeted Amounts
Actual
Final Budget
Original
Final
Amounts
Positive /(Negative,
Fund balance, July 1, 2011, deficit
$ (21,544,781)
$ (21,544,781)
$ (21,544,781)
$ -
Resources (inflows):
Investment income
605,030
609,330
615,626
6,296
Otherrevenue
1,095,000
426,400
1,751,831
1,325,431
Amount available for appropriation
(19,844,751)
(20,509,051)
(19,177,324)
1,331,727
Charges to appropriations (outflows):
Current
Public works
176,445
751,427
888,012
(136,585)
Capital outlay
1,398,576
3,715,505
1,416,791
2,298,714
Debt service:
Interest and fiscal charges
387,100
387,100
329,280
57,820
Transfers out
7,892
7,136
7,136
-
Total charges to appropriations
1,970,013
4,861,168
2,641,219
2,219,949
Fund balance, June 30, 2012, deficit
$ (21,814,764)
$ (25,370,219)
$ (21,818,543)
$ 3,551,676
88
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2012
1. BUDGETARY INFORMATION, Continued
Bud eg t Comparison Schedule - Developer Fees Special Revenue Fund
Budgeted Amounts
Original Final
Fund balance, July 1, 2011, deficit $ (1,493,440) $ (1,493,440)
Resources (inflows):
Developer fees - 6,799,650
Investment income 121,370 105,370
Otherrevenue - -
Amount available for appropriation (1,372,070) 5,411,580
Charges to appropriations (outflows):
Current:
Public safety
Capital outlay
Transfers out
Total charges to appropriations
Fund balance, June 30, 2012, deficit
- 6,500,920
25,000 230,468
5,000 5,583
Variance with
Actual Final Budget
Amounts Positive /(Negative;
$ (1,493,440) $ -
7,124,968
325,318
137,985
32,615
301
3,681
5,773,194
361,614
6,500,920 -
145,519 84,949
5,583 -
30,000 6,736,971 6,652,022 84,949
$ (1,402,070) $ (1,325,391) $ (878,828) $ 446,563
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2012
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - Public Library Special Revenue Fund
Fund balance, July 1, 2011
Resources (inflows):
Taxes
Investment income
Otherrevenue
Proceeds from capital lease
Transfers in
Amount available for appropriation
Charges to appropriations (outflows):
Current
General government
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total charges to appropriations
Fund balance, June 30,201Z deficit
Budgeted Amounts
Actual
Original
Final
Amounts
$ 2,821,114
$ 2,821,114 $
2,821,114
4,604,416
4,604,416
4,649,762
18,140
8,140
13,465
180,000
187,500
95,333
-
-
252,068
-
260,240
260,240
7,623,670
7,881,410
8,091,982
Variance with
Final Budget
Positive /(Negative;
45,346
5,325
(92,167)
252,068
210,572
3,696,918
4,120,866
3,929,402
191,464
2,614,120
13,485,036
8,737,933
4,747,103
350,000
350,000
-
350,000
150,000
150,000
182,006
(32,006)
6,811,038
18,105,902
12,849,341
5,256,561
$ 812,632
$ (10,224,492)
$ (4,757,359)
$ 5,467,133
PLO
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2012
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule - Landscape Maintenance District #1 Special Revenue Fund
Fund balance, July 1, 2011
Resources (inflows):
Taxes
Investment income
Service charges
Transfers in
Amount available for appropriation
Charges to appropriations (outflows):
Current
General government
Capital outlay
Transfers out
Total charges to appropriations
Fund balance, June 30, 2012
Budgeted Amounts
Original Final
$ 18,574,260 $ 18,574,260
727,498
240,000
13,471,542
50,000
33,063,300
Actual
Amounts
$ 18,574,260
Variance with
Final Budget
Positive /(Negative)
727,498
791,698
64,200
240,000
320,266
80,266
13,471,542
13,876,810
405,268
50,000
50,000
-
33,063,300
33,613,034
549,734
10,964,510
11,019,699
9,837,909
1,181,790
2,723,365
5,871,923
3,603,888
2,268,035
90,810
150,846
150,846
-
13,778,685
17,042,468
13,592,643
3,449,825
$ 19,284,615
$ 16,020,832
$ 20,020,391 $
3,999,559
91
City of Santa Clarita
Required Supplementary Information (Unaudited), Continued
For the year ended June 30, 2012
2 DEFINED BENEFIT PENSION PLAN
PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS)
SCHEDULE OF FUNDING PROGRESS
($ Amount in Thousands)
Miscellaneous Emnlouees
' Based on most recent actuarial valuation
3. OTHER POST EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress for the City's Plan
($ Amount in Thousands)
(A)
(B)
(C)
(D)
(E)
(F)
(Unfunded)
Actuarial
(Unfunded)
Actuarial
(Unfunded)
Actuarial Actuarial
Accrued
Actuarial
Funded
Entry Age
Actuarial
Liability
Liability
Liability as
Actuarial
Actuarial
Actuarial
Accrued
Funded
Annual
Percentage of
Valuation
Value of
Accrued
Liability
Ratio
Covered
Covered Payroll
Date'
Assets (AVA)
Liability
[(B) -(A)]
[(A)/(B)]
Payroll
[(C)/(E)]
6/30/2009
65,525
81,604
16,079
80.30%
25,835
62.24%
6/30/2010
73,450
90,181
16,731
81.45%
25,461
65.71%
6/30/2011
82,323
99,379
17,056
82.84%
25,381
67.20%
' Based on most recent actuarial valuation
3. OTHER POST EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress for the City's Plan
($ Amount in Thousands)
. Only two valuation dates are available.
92
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 $
$ 24,046
$ (24,046)
0.0%
$ 21,200
-113.42%
7/1/2010
41,425
(41,425)
0.0%
25,094
165.08%
. Only two valuation dates are available.
92
SUPPLEMENTARY INFORMATION
93
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.
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).
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.
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.
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
94
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds, Continued
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.
Tourism Marketing District - To account for receipts and disbursements associated with promoting local
businesses and tourism in the City of Santa Clarita through the Tourism Marketing District.
Open Space Preservation District - 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 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 Debt Service Fund - This fund was used to account for balances and revenues and
expenditures on loans from the City to the Redevelopment Agency. The Fund's operations ceased on January 31, 2012
and all balances were transfered to the RDA Successor Agency Private Purpose Trust Fund.
Redevelopment Agency Low/Mod Housing - This fund was used to account for principal and interest payments on the
Housing Set -Aside Tax Allocation Bonds, Series 2008. The Fund's operations ceased on January 31, 2012 and all balances
were transfered to the RDA Successor Agency Private Purpose Trust Fund.
Public Financing Authority - To account for principal and interest payments 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 Capital Projects Fund - This fund was 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. The Fund's operations
ceased on January 31, 2012 and all balances were transfered to the RDA Successor Agency Private Purpose Trust Fund.
Redevelopment Agency Low/Mod Housing - 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. The Fund's
operations ceased on January 31, 2012 and all balances were transfered to the RDA Successor Agency Private
Purpose Trust Fund.
Public Financing Authority - To account for the construction of all capital projects that utilize public financing
authority funds.
95
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2012
Revenue
LIABILITIES AND
Park
Special
FUND BALANCES
Bikeway
Gas Tax
Proposition A
Dedication
Assessment
ASSETS
Cash and investments
$ 76,502
$ 1,698,996
$ 397 $
729,607
$ 4,659,638
Receivables:
75,945
6,%2
2
2,743
21,162
Accounts
-
16,676
-
-
42,320
Interest
343
81005
2
3,154
24,332
Taxes
_
_
_
-
347,490
Due from other goverra rents
21,472
-
-
-
-
Deposits
_
_
_
_
_
Notes and kens receivable
-
-
-
Tout assets
$ 98,317
S 1,723,677
$ 399 $
732,761
$ 5,073,780
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
$ 7,833 $
287,336 $
397
$ - $
335,758
Deferred revenue
75,945
6,%2
2
2,743
21,162
Due to other funds
Total liabilities
83,778
294298
399
2,743
356,920
Fund Balances (Deficit):
Restricted
14,539
1,429,379
-
730,018
4,716,860
Assigned
_
_
_
_
_
Unassigned
-
-
-
Total fund balances (deficit)
14,539
1,429,379
-
730,018
4,716.860
Total liabilities and fund balances
$ 98,317 $
1,723,677 $
399
Is 732,761 $
5,073,780
96
Special Revenue Funds
State Traffic Stormwater Miscellaneous Federal Aid
Park TDA Safety CDBG AQMD Utilitv Grants Urban
$ - $ - $ - $ - $ - $ 6,197,582 $ - $
112,705
27,694
- - 121,830 - - 141,838 - -
404,621 1,922,145 - 161,438 55,400 3,500 383,882 313,403
- - - - - 417,002 - -
44,803
$ 404,621 $ 1,922,145 S 121,830 $ 309,241 $ 55,400 $ 6,900,311 $ 383,882 $ 313,403
$ 4,765 $ 351,051 $
- $ 112,992
$ 3,402 $
12076 $
148,751 $ -
_ _
_ 144,803
-
24,078
407,367 -
485,793 1,160,891
121,830 51,446
9,200
6,751,657
119,633 313,403
490,558 1,511,942
121,830 309,241
12.602
148,654
675,751 313,403
-
410,203 - -
42798
6,751,657
- -
(85,437)
(291,869)
(85,937)
410,203
42,798
6,751,657
(291,869)
$ 404,621 $
1,922,145 $ 121A30 $ 309,241 $
55,400 $
6,900,311
5 383,882 $ 313,403
(Continued)
97
City of Santa Clarita
Combining Balance Sheet, Continued
Non -Major Governmental Funds
June 30, 2012
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Taxes
Due from other governments
Deposits
Notes and loans receivable
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Deferred revenue
Due to other funds
Total liabilities
Fund Balances (Deficit):
Restricted
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities and fund balances
$ (12) $ - $ 300 $ 4,318 $ 652,526
- 1,224
17 - - 19 2,573
- - - - 108,145
8,630 165,994 - - -
2,056,315
$ 8,635 $ 165,994 $ 2,056,615 $ 5,561 $ 763,244
$ 6,311 $ 59,914 $ - $ 4,025 $ 4,679
15 47,989 2,056,315 17 2,238
372 45,480 -
6,698 153,383 21056,315 4,042 6,917
1,937
12,611
Library
Public
BJA Law
Supplemental
Facilities
Education and
Enforcement
Law Grant HOME
Fees
Government
$ (12) $ - $ 300 $ 4,318 $ 652,526
- 1,224
17 - - 19 2,573
- - - - 108,145
8,630 165,994 - - -
2,056,315
$ 8,635 $ 165,994 $ 2,056,615 $ 5,561 $ 763,244
$ 6,311 $ 59,914 $ - $ 4,025 $ 4,679
15 47,989 2,056,315 17 2,238
372 45,480 -
6,698 153,383 21056,315 4,042 6,917
1,937
12,611
300
1,519
756,327
1,937
12,611
300
1,519
756,327
$ 8,635
$ 765,994 $
2,056,615
$ SS61 $
763,244
98
Specud Revenue Funds
Tourism
Federal Marketing
Proposition C Grants Measure R District OSFD Total
$ 33,519 $ - $ - $ 148,708 $ 11,405,081 $ 25,607,162
- - - - 6,497 179,422
12 - - 667 23,493 90,301
- - - 44,522 123,422 887,247
853,390 987,806 157,528 - - 5,442,209
- _ _ 3,000 420,002
- - 220,118
$ $86.921 $ 987,806 $ 157,528 $ 193,897 $ 11,561,493 $ 34,827,461
$ 40,989 $ 746 $ - $ 66,619 $ 34,731 $ 1,594,875
845,932 6,977 - 580 20,432 3,663,557
- 585,685 157,528 31051,261
886,921593A08 157528 67,199 55,163 8,309,693
- 394,398
- 126,698
11,506,330
26,895,574
377,806)
- 394,398
126,698
11,506,330
26,517,768
$ 886,921 $ 987,806 $
157528 $ 193,897
$ 11,562,493
$ 34,827461
(Continued)
99
City of Santa Clarita
Combining Balance Sheet, Continued
Non -Major Governmental Funds
June 30, 2012
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Taxes
Due from other governments
Deposits
Notes and loans receivable
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities;
Accounts payable and accrued liabilities
Deferred revenue
Due to other funds
Total liabilities
Fund Balances (Deficit):
Restricted
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities and fund balances
(1) These funds were dosed during the year See Note 18.
100
Debt Service Funds
Redevelopment Agency (1) Public
Low/Mod Financing
Debt Service Housing Authority Total
$ - $ - $ 457,291 $ 457,291
$ - $ - $ 457,291 $ 457,291
457,291 457,291
457,291 457,291
$ - $ - $ 457,291 $ 457,291
Capital Projects Funds
Total
General Redevelopment Agency (1) Public Nonmajor
Capital Capital Low/Mod Financing Governmental
Projects Pmfects Housing Authority Total Funds
$ 2,882,713 $ - $ - $ 196 $ 2,882,909 $ 28,417,362
179,422
- _ 90,301
887,247
5,442,209
420,002
2,201,118
$ 2,882,713 $ - $ - $ 1% $ 2.882,909 $ 38,167,661
$ 64,888 $ - $ - $ - $ 64,888 $ 1,659,763
- - - - - 3,663,557
3,051,261
64,888 64,888 8,374,581
- - - - - 26,895,574
2,817,825 - - 1% 2,818,021 3,275,312
(377,806)
2,817,825 1% 2,818,021 29,793,080
$ 2,882.713 $ - $ - $ 1% $ 2,882,909 $ 38,167,661
101
City of Santa Clarita
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2012
REVENUES:
Taxes
Developer fees
Investment income
Revenue from other agencies
Fines and forfeitures
Service charges
Otherrevenue
Total revenues
EXPENDITURES:
Current.
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt service:
Prinripal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
EXTRAORDINARY ITEM:
Gain (loss) from dissolution of Redevelopment Agency
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of yea
End of year
Special Revenue Funds
Park Special
Bikewav Gas Tax Proposition A Dedication Assessment
$ - $
- $
- $
- $ 2,224,099
1,681
21,215
19,223
19,603 95,597
21,472
4,923,971
2,595,861
- -
-
_
_
- 2,122,044
8,804
828 29,078
23,153
4,953,990
2,615,084
20,431 4,469,818
3,313,677
3,438,450 47,263 - 1,088,729
24,844 924,590 1,186,743 394,321 265,994
24,844 4,363,040 1,234,006 394,321 4,668,400
(1,691) 590,950 1,381,078 (373,890) (198,582)
223,800 - 27,000 997,988
(414,124) (2,366,089) (959,863)
(190,324) (2,366,089) 27,000 38,125
(1,691) 400,626 (985,011) (346,890) (160,457)
16,230 1,028,753 985,011 11076,908 4,877,317
$ 14,539 $ 1,429,379 $ - $ 730,018 $ 4,716,860
102
Special Revenue Funds
State Traffic Stormwater Miscellaneous Federal Aid
Park TDA Safety CDBG AQMD Utility Grants Urban
3,831 334 - 350 112,189 - _
1,224%5 6,738,161 - 1,233,053 214,858 - 1,546,268 1,509,740
1,113,701-
- - - 2,781,341 - 313,403
6.406
1,224,%5 6,741,992 1,114,035 1,233,053 215,208 2,899,936 1,546,268 1,823,143
2,699 355AN _
209,743
- 3,379 - - 57,461 2,086,336 17,396
256,492 _ _ _ _ _ 12,970 -
_ _ 961,454 _ _ _ _
148,377 5,726,827 - - - 113,254 677,995 1,812,636
230,000
41,599
404,869 5,730,206 1,233,053 57,461 2202,289 1,273,784 1,812636
820,096 1,011,786 1,114,035 - 157,747 697,647 272,484 10,507
3Z660
(27,000) (601,583) (1,11035) (165,247) (63,480)
(27,000) (601,583) (1,114,035) (165,247) (301820)
793,096 410,203 - - (7,500) 666,827 272484 10,507
(879,0333) - 50,298 6,084,830 (564,353) (10,507)
$ (85,437) $ 410,203 $ - $ - $ 42,798 $ 6,751,657 $(291,869) $
103
City of Santa Clarita
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued
Non -Major Governmental Funds
For the Year Ended June 30, 2012
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
Pub& works
Parks and recreation
Community development
Capital =flay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers not
Total other financing sources (uses)
EXTRAORDINARY ITEM:
Gain (loss) from dissolution of Redevelopment Agerxy
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Special Revenue Funds
Library Public
BJA Law Supplemental Facilities Education and
Enforcement Law Grant HOME Fees Government
$ - $ - $ - $ - $ 417,570
- 57,018 -
479 905 - 295 8,557
31,416 371,190 - - -
300
31,895 372,095 300 57,313 426,127
56,079 359,484 - - -
56,079 359,484 180,715
(24,184) 12,611 300 57,313 245,412
(57,018)
(57,018)
(24,184) 12,611 300 295 245,412
26,121 1,224 510,915
$ 1,937 $ 12611 $ 300 $ 1,519 $ 756,327
104
Special Revenue Funds
Tourism
Federal Marketing
Proposition C Grants Measure R District OSPD Total
$ - $
- $ - $
- $
-
$ $641,669
-
- -
-
-
57,018
91609
- 4,533
4,326
83,770
386,497
2,570,466
3,301,471 1,604,452
-
-
27,887,344
•
- -
-
-
1,113,701
-
- -
427,367
1,847,479
7,491,934
44,116
2,580,075
3,301,471 1,608,985
431,693
1,931,249
39,622,279
72,893 5,768
159,846 1,130,269
543,675 484,405 41880,851
- - 625,306
- - 6,817,675
- - 269,462
- - %1,454
- - 12,565,6%
230,000
41,599
232,739 1,136,037 543,675 484,405 26,392,043
2,347,336 2,165,434 1,608,985 (111,982) 1,446,844 13,230,236
- 1,281,448
(2,347,349) - (1,608,985) (759,229) (10,484,002)
(2,347,349) (1,608,985) (759,229) (9,202554)
(13) 2165,434 - (111,982) 687,615 4,027,682
13 (1,771,036) 238,680 10,818,715 22490,086
$ - $ 394,398 $ - $ 126,698 $ 11,506,330 $ 26,517,768
105
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, 2012
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:
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)
EXTRAORDINARY ITEM:
Gain (loss) from dissolution of Redevelopment Agency
NEI' CHANGE IN FUND BALANCE
45
Debt Service Funds
Redevelopment
Agency (2) Public
Debt
Low/Mod Financing
Service
Housing: Authority Total
45
45
45
45
1,750 1,750 - 3,500
435,000
125,000
1,548,787
2,108,787
1,288,308
203,878
11698,063
31190,249
1,725,058
330,628
3,24600
51302,536
(1,725,013) (330,628) (3,246,850) (5,302,491)
L112,674
328,878
3,246,849
4,688,401
L112,674
328,878
3,246,849
4,688,401
17,3031615 (276,401) 17,027,214
16,691,276 (278,151) (1) 16,413,124
FUND BALANCE:
Beginning of yen (16,691,276) 278,151 457,292 (15,955,833)
End of year $ - $ - $ 457,291 $ 457,291
(2) Period is for seven months from July 1, 2011- January 31, 2012. See Note 18.
5"O
_ Capital Projects Funds
General Redevelopment Agency (2) Public Nonmajor
Capital Capital Low/Mod Financing Governmental
Projects Projects Housing Authority Total Funds
$ - $ 1,745,075 $
408,269 $
- $ 2,153,344
$ 4,795,013
- -
-
- -
57,018
- 4,278
55,731
1 60,010
446,552
- -
-
- -
27,887,344
- -
-
- -
1,113,701
- -
-
- -
7,491,934
800,000
800,000
844,116
800,000 1,749,353
464,000
1 3,013,354
42,635,678
12,432 6,376 - 18,808 4,903,159
625,306
- - - - - 6,817,675
269,462
- 880,866 134,245 - 1,015,111 1,976,565
812,763 120,849 - - 933,612 13,499,308
2,338,787
3,231,848
812,763 1,014,147 140,621 1,967,531 33,662,110
(12.763) 735,206 323,379 1 1,045,823 8,973,566
95,500 37,400 - 747,951 880,851 6,850,700
(260,240) (1,121,624) (340,528) (747,951) (2,470,343) (12954,345)
(164,740) (1,084,224) (340,528) (1,589,492) (6,103,645)
164,423 (8,874,521) (8,710,098) 8,317,116
(177,503) (184,595) (8,891,670) 1 (9,253,767) 11,187,039
2,995,328 184,595 8,891,670 195 12071,788 18,606,041
$ 2817,825 $ $ - $ 196 $ 2,818,021 $ 29,793,080
107
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, 2012
REVENUES:
Investment income
Revenue from other agencies
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
$ (2,580) $ (106,070)
108
(1,691) $ 104,379
16,230
$ 14,539
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
$ 420
$ 920
$ 1,681
$ 761
104,222
85,550
21,472
(64,078)
104,642
86,470
23,153
(63,317)
107,222
192,540
24,844
167,696
107,222
192,540
24,844
167,696
$ (2,580) $ (106,070)
108
(1,691) $ 104,379
16,230
$ 14,539
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, 2012
REVENUES:
Investment income
Revenue from other agencies
Other revenue
Total revenues
EXPENDITURES:
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE--
Beginning
ALANCEBeginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 5,570 $ 8,570 $ 21,215 $ 12,645
4,717,451 4,621,632 4,923,971 302,339
- - 8,804 8,804
4,723,021 4,630,202 4,953,990 323,788
4,007,516
4,002,091
3,438,450
563,641
706,236
1,505,462
924,590
580,872
4,713,752
5,507,553
4,363,040
1,144,513
9,269
(877,351)
590,950
1,468,301
223,800
223,800
223,800
-
(418,860)
(415,614)
(414,124)
1,490
(195,060)
(191,814)
(190,324)
1,490
$ (185,791) $ (1,069,165)
IM
400,626 $ 1,469,791
1,028,753
$ 1,429,379
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, 2012
REVENUES:
Investment income
Revenue from other agencies
Total revenues
EXPENDITURES:
Current.*
Public works
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
36,401
48,401
47,263
Variance from
212,000
1,428,384
1,186,743
Final Budget
Original
Final
1,234,006
Positive/
Budget
Budget
Actual
(Negative)
$ -
$ 6,500 $
19,223
$ 12,723
2,427,481
2,445,055
2,595,861
150,806
2,427,481
2,451,555
2,615,084
163,529
36,401
48,401
47,263
1,138
212,000
1,428,384
1,186,743
241,641
248,401
1,476,785
1,234,006
242,779
2,179,080
974,770
1,381,078
406,308
(2,051,080)
(1,959,782)
(2,366,089)
(406,307)
(2,051,080)
(1,959,782)
(2,366,089)
(406,307)
$ 128,000
$ (985,012)
(985,011) $
1
110
985,011
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, 2012
111
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
REVENUES:
Investment income
$ 19,250
$ 19,250
$ 19,603
$ 353
Other revenue
-
-
828
828
Total revenues
19,250
19,250
20,431
1,181
EXPENDn'URES:
Capital outlay
359,300
499,554
394,321
105,233
Total expenditures
359,300
499,554
394,321
105,233
REVENUES OVER (UNDER) EXPENDITURES
(340,050)
(480,304)
(373,890)
106,414
OTHER FINANCING SOURCES (USES):
Transfers in
-
27,000
27,000
-
Total other financing sources (uses)
-
27,000
27,000
-
NET CHANGE IN FUND BALANCE
$ -
$ 27,000
(346,890)
$ (373,890)
FUND BALANCE
Beginning of yew
1,076,908
End of year
$ 730,018
111
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, 2012
REVENUES
Taxes
Investment income
Sevice charges
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
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 2,122,871 $
2,122,871 $
2,224,099 $
101,228
84,040
74,040
95,597
21,557
2,007,784
2,007,784
2,122,044
114,260
-
-
28,078
28,078
4,214,695
4,204,695
4,469,818
265,123
3,600,621
4,064,152
3,313,677
750,475
1,251,834
1,331,834
1,088,729
243,105
302,000
341,298
265,994
75,304
5,154,455
5,737,284
4,668,400
1,068,884
(939,760)
(1,532,589)
(198,582)
1,334,007
1,814,149
1,659,929
997,988
661,941
(1,862,705)
(1,621,804)
(959,863)
661,941
(48,556)
38,125
38,125
1,323,882
$ (988,316) $
(1,494,464)
(160,457) $
1,334,007
112
4,877,317
$ 4,716,860
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, 2012
REVENUES:
Revenue from other agencies
Total revenues
EXPENDITURES:
Current
Parks and recreation
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 (DEFICFF):
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 260,000 $ 1,238,470 $ 1,224,965 $ (13,505)
260,000 1,238,470 1,224,965 (13,505)
266,498
267,027
256,492
10,535
75,000
179,893
148,377
31,516
341,498
446,920
404,869
42,051
(81,498)
791,550
820,096
28,546
-
(27,000)
(27,000)
-
-
(27,000)
(27,000)
-
$ (81,498) $ 764,550
113
793,096 $ 28,546
(879,033)
$ (85,937)
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, 2012
REVENUES:
Investment income
Revenue from other agencies
Total revenues
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE
Beginning of year
End of year
3,379 3,379 3,379 -
7,517,289 13,174,091 5,726,827 7,447,264
7,520,668 13,177,470 5,730,206 7,447,264
1,044,302 568,100 1,011,786 443,686
(1,044,302) (402,311) (601,583) (199,272)
(1,044,302) (402,311) (601,583) (199,272)
$ - $ 165,789
114
410,203 $ 244,414
$ 410,203
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
$ -
$ 2,400
$ 3,831
$ 1,431
8,564,970
13,743,170
6,738,161
(7,005,009)
8,564,970
13,745,570
6,741,992
(7,003,578)
3,379 3,379 3,379 -
7,517,289 13,174,091 5,726,827 7,447,264
7,520,668 13,177,470 5,730,206 7,447,264
1,044,302 568,100 1,011,786 443,686
(1,044,302) (402,311) (601,583) (199,272)
(1,044,302) (402,311) (601,583) (199,272)
$ - $ 165,789
114
410,203 $ 244,414
$ 410,203
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, 2012
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)
$ 930 $ 930 $ 334 $ (596)
1,500,000 1,195,000 1,113,701 (81,299)
1,500,930 1,195,930 1,114,035 (81,895)
(1,500,930) (1,195,254) (1,114,035) 81,219
(1,500,930) (1,195,254) (1,114,035) 81,219
$ $ 676
115
$ (676)
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, 2012
REVENUES:
Revenue from other agencies
Total revenues
EXPENDITURES:
Current:
Community development
Debt service:
Principal retirement
Interest and fiscal charges
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)
$ 1,023,763 $ 1,326,566 $ 1,233,053 $ (93,513)
1,023,763 1,326,566 1,233,053 (93,513)
750,816
1,043,887
961,454 82,433
230,000
230,000
230,000 -
41,599
41,599
41,599 -
1,022,415
1,315,486
1,233,053 82,433
$ 1,348 $
116
11,080
- $ (11,080)
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, 2012
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
117
50,298
$ 42,798
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
$ -
$ -
$ 350
$ 350
206,367
206,367
214,858
8,491
206,367
206,367
215,208
8,841
31,874
74,672
57,461
17,211
31,874
74,672
57,461
17,211
174,493
131,695
157,747
26,052
(174,493)
(181,994)
(165,247)
16,747
(174,493)
(181,994)
(165,247)
16,747
$ -
$ (50,299)
(7,500)
$ 42,799
117
50,298
$ 42,798
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Stormwater Utility Special Revenue Fund
For the Year Ended June 30, 2012
REVENUES:
Investment income
Service charges
Other revenues
Total revenues
Current:
General government
Public works
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
12,000
12,000
2,699
Variance from
2,686,158
3,168,441
2,086,336
Final Budget
Original
Final
113,254
Positive/
Budget
Budget
Actual
(Negative)
$ 86,010
$ 86,010
$ 112,189
$ 26,179
2,981,374
2,981,374
2,781,341
(200,033)
-
-
6,406
6,406
3,067,384
3,067,384
2,899,936
(167,448)
12,000
12,000
2,699
9,301
2,686,158
3,168,441
2,086,336
1,082,105
150,000
150,000
113,254
36,746
2,848,158
3,330,441
2,202,289
1,128,152
219,226
(263,057)
697,647
960,704
32,660
32,660
32,660
-
(75,070)
(64,190)
(63,480)
710
(42,410)
(31,530)
(30,820)
710
$ 176,816 $
(294,587)
666,827 $
961,414
118
6,084,830
$ 6,751,657
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, 2012
EXPENDITURES:
Current
General government
381,421
358,264
Variance from
2,584
Public safety
-
Final Budget
209,743
Original
Final
Positive/
81,811
Budget
Budget Actual
(Negative)
REVENUES:
722,584
12,970
709,614
Revenues from other agencies
$ 859,407
$ 1,480,015 $ 1,546,268
$ 66,253
Other revenue
632,147
1,867,897 -
(1,867,897)
Total revenues
1,491,554
3,347,912 1,546,268
(1,801,644)
EXPENDITURES:
Current
General government
381,421
358,264
355,680
2,584
Public safety
-
273,508
209,743
63,765
Public works
45,000
81,811
17,396
64,415
Parks and recreation
-
722,584
12,970
709,614
Capital outlay
1,064,367
1,452,135
677,995
774,140
Total expenditures
1,490,788
2,888,302
1,273,784
1,614,518
NET CHANGE IN FUND BALANCE
766
459,610
272,484
(187,126)
FUND BALANCE (DEFICIT):
Beginning of year (564,353)
End of year $ (291,869)
119
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, 2012
REVENUES:
Revenue from other agencies
Service charges
Total revenues
EXPENDITURES:
Current
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
600,000 2,422,495 1,812,636 609,859
600,000 2,422,495 1,812,636 609,859
$ - $ (106,629) 10,507 $
120
(10,507)
117,136
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
$ 600,000
$ 2,315,866
$ 1,509,740
$ (806,126)
-
-
313,403
313,403
600,000
2,315,866
1,823,143
(492,723)
600,000 2,422,495 1,812,636 609,859
600,000 2,422,495 1,812,636 609,859
$ - $ (106,629) 10,507 $
120
(10,507)
117,136
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, 2012
REVENUES:
Investment income
Revenues from other agencies
Total revenues
Current:
Public safety
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ - $ 100 $
- 115,953 _
- 116,053
479 $ 379
31,416 (84,537)
31,895 (84,158)
115,950 56,079 59,871
115,950 56,079 59,871
$ - $ 103 (24,184) $ (144,029)
121
26,121
$ 1,937
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, 2012
REVENUES:
Investment income
Revenues from other agencies
Total revenues
EXPENDITURES:
Current:
Public safety
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 930 $ 930 $ 905 $ (25)
- 449,453 371,190 (78,263)
930 450,383 372,095 (78,288)
$ 930 $
122
433,315
433,315
17,068
359,484 73,831
359,484 73,831
12,611 $ (152,119)
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, 2012
REVENUES:
Service charges
Total revenues
NET CHANGE IN FUND BALANCE
FUND BALANCE
Beginning of year
End of year
Variance from
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
123
300 $ 300
300 300
300 $ 300
$ 300
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, 2012
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
Beginning of year
End of year
Original Final
Budget Budget
Variance from
Final Budget
Positive/
Actual (Negative)
57,018 $ 57,018
295 295
57,313 57,313
(36,225) (57,018) (20,793)
(36,225) (57,018) (20,793)
$ - $ (36,225) 295 $ 36,520
124
1,224
$ 1,519
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, 2012
REVENUES:
Taxes
Investment income
Total revenues
Current:
General government
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE
Beginning of year
End of year
190,385
190,385
180,715
Variance from
190,385
190,385
180,715
Final Budget
Original
Final
245,412 $
Positive/
Budget
Budget
Actual
(Negative)
$ 350,000
$ 350,000
$ 417,570
$ 67,570
4,970
6,970
8,557
1,587
354,970
356,970
426,127
69,157
190,385
190,385
180,715
9,670
190,385
190,385
180,715
9,670
$ 164,585 $
166,585
245,412 $
59,487
125
510,915
$ 756,327
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, 2012
REVENUES:
Investment income
Revenue from other agencies
Total revenues
EXPENDITURES:
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
2,684 95,383 72,893 22,490
- 933,088 159,846 773,242
2,684 1,028,471 232,739 795,732
2,584,786 2,765,483 2,347,336 (418,147)
(2,560,786) (2,954,572) (2,347,349) (607,223)
(2,560,786) (2,954,572) (2,347,349) (607,223)
$ 24,000 $ (189,089)
126
(13) $ 189,076
13
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
$ -
$ 1,800
$ 9,609
$ 7,809
2,587,470
3,792,154
2,570,466
(1,221,688)
2,587,470
3,793,954
2,580,075
(1,213,879)
2,684 95,383 72,893 22,490
- 933,088 159,846 773,242
2,684 1,028,471 232,739 795,732
2,584,786 2,765,483 2,347,336 (418,147)
(2,560,786) (2,954,572) (2,347,349) (607,223)
(2,560,786) (2,954,572) (2,347,349) (607,223)
$ 24,000 $ (189,089)
126
(13) $ 189,076
13
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, 2012
REVENUES:
Revenues from other agencies
Service charges
Other revenue
Total revenues
EXPENDITURES:
Current
Public works
Capital outlay
Total expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
5,690 5,768 (78)
1,982,774 3,300,871 1,130,269 2,170,602
1,982,774 3,306,561 1,136,037 2,170,524
$ 625,000 $ 593,663
127
2,165,434 $ 1,571,771
(1,771,036)
$ 394,398
Variance from
Final Budget
Original
Final
Positive/
Budget
Budget Actual
(Negative)
$ 2,607,774
$ 3,653,274 $ 3,301,471
$ (351,803)
-
133,000 -
(133,000)
-
113,950 -
(113,950)
2,607,774
3,900,224 3,301,471
(598,753)
5,690 5,768 (78)
1,982,774 3,300,871 1,130,269 2,170,602
1,982,774 3,306,561 1,136,037 2,170,524
$ 625,000 $ 593,663
127
2,165,434 $ 1,571,771
(1,771,036)
$ 394,398
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, 2012
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)
$ - $ 480 $ 4,533 $ 4,053
1,485,344 1,521,095 1,604,452 83,357
1,485,344 1,521,575 1,608,985 87,410
(1,485,344) (1,521,575) (1,608,985) (87,410)
(1,485,344) (1,521,575) (1,608,985) (87,410)
128
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Tourism Marketing District Special Revenue Fund
For the Year Ended June 30, 2012
REVENUES:
Investment income
Service charges
Total revenues
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)
$ 2,550 $
2,550 $
4,326 $
1,776
400,000
400,000
427,367
27,367
402,550
402,550
431,693
29,143
400,000 573,861
400,000 573,861
$ 2,550 $ (171,311)
129
543,675 30,186
543,675 30,186
(111,982) $ 59,329
238,680
$ 126,698
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Open Space Preservation District Special Revenue Fund
For the Year Ended June 30, 2012
REVENUES:
Investment income
Service charges
Total revenues
Current:
General government
Total expenditures
REVENUES OVER (UNDER)
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE:-
Beginning
ALANCE:Beginning of year
End of year
Original Final
Budget Budget
$ 63,000 $ 69,000
1,785,700 1,785,700
1,848,700 1,854,700
Variance from
Final Budget
Positive/
Actual (Negative)
$ 83,770 $ 14,770
1,847,479 61,779
1,931,249 76,549
293,660 1,901,163 484,405 1,416,758
293,660 1,901,163 484,405 1,416,758
1,555,040 (46,463) 1,446,844 1,493,307
(760,751) (759,229) (759,229)
(760,751) (759,229) (759,229)
$ 794,289 $ (805,692) 687,615
130
10,818,715
$ 11,506,330
$ 1,493,307
131
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.
132
City of Santa Clarita
Combining Statement of Net Assets
Internal Service Funds
June 30, 2012
LIABILITIES
Public
Current liabilities:
5,010,611
Computer
Vehicle
Facilities
8,131,458
Accounts payable and accrued liabilities
Self -Insurance
Replacement
Replacement
Replacement
Total
ASSETS
3,179
-
-
-
3,179
Current assets:
22,876
7,328
16,793
35,765
82,762
Cash and investments
$ 6,914,065
$ 1,877,263
$ 4,301,968
$ 14,162,282 $
27,255578
Receivables:
Accounts
1,633
-
-
-
1,633
Interest
26,302
8,426
19,308
41,122
95,158
Advances to other fund
925,223
-
-
-
925,223
Total current assets
7,867,223
1,885,689
4,321,276
14,203,404
28,277,592
Noncurrent assets:
Capita assets:
Land
5,000,000
-
-
2,669,393
7,669,393
Equipment, net of accumulated depreciation
10,611
211,405
240,049
-
462,065
Total noncurrent assets
5,010,611
211,405
240,049
2,669,393
8,131,458
Total assets
12,877,834
2,097,094
4,561,325
16,872,797
36,409,050
LIABILITIES
Current liabilities:
5,010,611
211,405
240,049
2,669,393
8,131,458
Accounts payable and accrued liabilities
202,631
99,590
-
61,907
364,128
Compensated absences
3,179
-
-
-
3,179
Deferred revenues
22,876
7,328
16,793
35,765
82,762
Total current liabilities
228,686
106,918
16,793
97,672
450,069
Noncurrent liabilities:
Claims payable
50,000
-
-
-
50,000
Total noncurrent liabilities
50,000
-
-
-
50,000
Tota liabilities
278,686
106,918
16,793
97,672
500,069
NET ASSETS
Invested in capital assets
5,010,611
211,405
240,049
2,669,393
8,131,458
Restricted
395,732
-
-
-
395,732
Unrestricted
7,192,805
1,778,771
4,304,483
14,105,732
27,381,791
Total net assets
$ 12,599,148 $
1,990,176 $
4,544,532 $
16,775,125 $
35,908,981
133
City of Santa Clarita
Combining Statement of Revenues, Expenses and Changes in Net Assets
Internal Service Funds
For the Year Ended June 30, 2012
OPERATING REVENUES:
Charges for services
Total operating revenues
OPERATING EXPENSES:
Administrative and personnel services
Services and supplies
Depreciation
Total operating expenses
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES):
Investment income
Total nonoperating revenues (expenses)
INCOME BEFORE TRANSFERS
TRANSFERS:
Transfers in
Transfers out
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
$ 2,050,253 $ 400,137 $ 346,000 $ - $ 2,796,390
2,050,253 400,137 346,000 - 2,796,390
220,515
-
-
2,243
222,758
1,714,063
209,948
(3,988)
115,055
2,035,078
6,702
133,944
142,276
-
282,922
1,941,280
343,892
138,288
117,298
2,540,758
10,970,174
1,908,858
4,277,940 11,716,801
28,873,773
$ 12,599,148 $
108,973
56,245
207,712
(117,298)
255,632
92,426
25,073
58,880
175,622
352,001
92,426
25,073
58,880
175,622
352,001
201,399
81,318
266,592
58,324
607,633
1,443,678
-
- 5,000,000
6,443,678
(16,103)
-
- -
(16,103)
1,427,575
-
- 5,000,000
6,427,575
1,628,974
81,318
266,592 5,058,324
7,035,208
10,970,174
1,908,858
4,277,940 11,716,801
28,873,773
$ 12,599,148 $
1,990,176 $
4,544,532 $ 16,775,125 $
35,908,981
134
City of Santa Clarita
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from interfund services provided
Receipts from other services provided
Payments to employers
Payments to suppliers
Net cash provided by (used for) operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds
Net cash provided by (used fm)
noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Net cash provided (used for) by capital
and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
Net cash provided (used for) by investing activities
Net increase (decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
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:
hxrease (decrease) in account payable and accrued liabilities
Increase (decrease) in deferred revenues
Increase (decrease) in compensated absences
Increase (decrease) in claims payable
Total adjustments
Net cash provided (used) by operating activities
Public
Computer Vehicle Facilities
Self -Insurance Replacement Replacement Replacement Total
$ 2,050,253 $
400,137 $
346,000 $
- $
2,796,390
22,876
7,328
16,793
35,765
82,762
(217,336)
-
-
(2,243)
(219,579)
(1,617,717)
(121,959)
3,988
(97,525)
(1,833,213)
238,076
285,506
366,781
(64,003)
826,360
1,412,250
51000,000 6,412,250
1,412,250 - - 5,000,000 6,412,250
(153560) (56,996) - (210,556)
(153,560) (56,996) - (210,556)
66,124 26,504 62,110 186,342 341,080
66,124 26,504 62,110 186,342 341,080
1,716,450 158,450 371,895 5,122,339 7,369,134
5,197,615 1,718,813 3,930,073 9,039,943 19,886,444
$ 6,914,065 $ 1,877,263 $ 4,301,968 $ 14,162,282 $ 27,255,578
$ 108,973 $ 56,245 $ 207,712 $ (117,298) $ 255,632
6,702 133,944 142,276 - 282,922
86,346
87,989
-
17,530
191,865
22,876
7,328
16,793
35,765
82,762
3,179
-
-
-
3,179
10,000
-
-
-
10,000
129,103
229,261
159,069
53,295
570,728
$ 238,076 $
285,506 $
366,781 $
(64,003) $
826,360
135
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.
136
City of Santa Clarita
Combining Statement of Fiduciary Assets and Liabilities
Fiduciary Funds
June 30, 2012
ASSETS
Cash and investments
Cash and investments with fiscal agent
Receivables:
Accounts
Interest
Total assets
LIABILITIES
Accounts payable and accrued liabilities
Due to other funds
Deferred revenues
Due to bondholders
Total liabilities
Community
Assessment Assessment Facilities
District District District
No. 92-2 No. 99-1 No. 2002-1 Total
$ 78,850 $ 66,877 $ - $ 145,727
63,900 60,225 1,669,217 1,793,342
1,814 1,035 597,378 600,227
355 300 - 655
$ 144,919 $ 128,437 $ 2,266,595 $ 2,539,951
$ 878 $ 909 $ - $ 1,787
- - 638,993 638,993
308 261 - 569
143,733 127,267 1,627,602 1,898,602
$ 144,919 $ 128,437 $ 2,266,595 $ 2,539,951
®tea
137
City of Santa Clarita
Schedule of Changes in Fiduciary Assets and Liabilities
All Agency Funds
For the Year Ended June 30, 2012
Balance at Balance at
July 1, 2011 Additions Deletions June 30, 2012
ASSESSMENT DISTRICT NO. 92-2
ASSETS
Cash and investments
$
57,873
$
20,977
$
- $
78,850
Cash and investments with fiscal agent
66,877
63,900
-
-
63,900
Receivables:
60,225
Receivables:
Accounts
3,435
-
1,621
1,814
Interest
332
23
Interest
-
355
Total assets
$
125,540
$
21,000
$
1,621 $
144,919
LIABILITIES
$
33,829
$
2,020
$
128,437
LIABILITIES
Accounts payable and accrued liabilities
$
51
$
827
$
- $
878
Deferred revenues
$
284
$
24
$
-
308
Due to bondholders
Deferred revenues
125,205
163
18,528
98
-
143,733
Total liabilities
$
125,540
$
19,379
$
- $
144,919
ASSESSMENT DISTRICT NO. 99-1
ASSETS
Cash and investments
$
33,158
$
33,719
$
-
$
66,877
Cash and investments with fiscal agent
60,225
-
-
60,225
Receivables:
Accounts
3,055
-
2,020
1,035
Interest
190
110
-
300
Total assets
$
96,628
$
33,829
$
2,020
$
128,437
LIABILITIES
Accounts payable and accrued liabilities
$
7,142
$
-
$
6,233
$
909
Deferred revenues
163
98
-
261
Due to bondholders
89,323
37,944
-
127,267
Total liabilities
$
96,628
$
38,042
$
6,233
$
128,437
138
City of Santa Clarita
Schedule of Changes in Fiduciary Assets and Liabilities
All Agency Funds
For the Year Ended June 30, 2012
Balance at Balance at
July 1, 2011 Additions Deletions June 30, 2012
COMMUNITY FACILITIES
DISTRICT NO. 2002-1
ASSETS
Cash and investments
$
15,000
$
-
$
15,000 $
-
Cash and investments with fiscal agent
145,727
1,669,906
-
689
1,669217
Receivables:
1,793,342
Receivables:
Accounts
-
597,378
-
597,378
Total assets
$
1,684,906
$
597,378
$
15,689 $
2,266,595
LLIBILITIES
133
-
655
Total assets
$
Due to other funds
$
80,632
$
558,361
$
- $
638,993
Due to bondholders
1,604,274
23,328
-
1,627,602
Total liabilities
$
1,684,906
$
581,689
$
- $
2,266,595
TOTAL - ALL AGENCY FUNDS
ASSETS
Cash and investments
$
106,031
$
54,696
$
15,000
$
145,727
Cash and investments with fiscal agent
1,794,031
-
689
1,793,342
Receivables:
Accounts
6,490
597,378
3,641
600,227
Interest
522
133
-
655
Total assets
$
1,907,074
$
652,207
$
19,330
$
2,539,951
LIABILITIES
Accounts payable and accrued liabilities
$
7,193
$
827
$
6,233
$
1,787
Due to other funds
80,632
558,361
-
638,993
Deferred revenues
447
122
-
569
Due to bondholders
1,818,802
79,800
-
1,898,602
Total liabilities
$
1,907,074
$
639,110
$
6,233
$
2539,951
139
140
REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS
141
This page intentionally left blank
142
MARCUM
ACCOUNTANTS • ADVISORS
INDEPENDENT AUDITORS' 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 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
(the "City') as of and for the year ended June 30, 2012, which collectively comprise the City's basic
financial statements and have issued our report thereon dated January 11, 2013. 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
Management of the City is responsible for establishing and maintaining effective internal control over
financial reporting. In planning and performing our audit, we considered the Citys internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of 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 a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entitys 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 previously.
IVIAMWGROUP
MEMBER
Marcum W ■ 5 Park Plaza 0 Suite 700 ■ Irvine, California 92614 m Phan 949.853.9400 ■ Fax 949.833.3582 ■ 11 W=M1lp.C8M
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 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 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 the City Council, management, others
within the entity, 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.
`YaVd4,k L L f
Irvine, California
January 11, 2013
144
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 147-152
current financial performance by placing it in historical perspective.
Revenue Capacity
These tables contain information that may help in assessing the viability of the 154-165
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 166-172
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 173-174
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 175-177
understanding how the information in the City's financial statements relate to the
services the City provides and the activities it performs.
145
146
City of Santa Clarita
Net Assets by Component (1)
Last Six Fiscal Years Ended June 30, 2012
(accrual basis of accounting)
Governmental Activities
Investment in capital assets,
net of related debt
Restricted for:
Capital Projects
Debt Service
Specific Projects and Programs
Total Restricted
Unrestricted
Total governmental activities net assets
Business -type Activities
Investment in capital assets,
net of related debt
Restricted for:
Debt Service
Unrestricted
Total business -type activities net assets
Primary Government
Investment in capital assets,
net of related debt
Restricted
Unrestricted
Total Primary Government Net Assets
FISCAL YEAR
11-12 10-11 09-10 08-09 07-08 06.07
$ 743,281,558 $ 717,613,095 $ 657,644,168 $ 629,621,720 $ 672,306,820 $ 661,210,117
3,275,312 3,452,815 4,769,573 4,769,573 45,993,804
18,134,924
- - - - 632,680
-
46,915,%S 30,201,655 85,895,468 92,644,739 61,018,399
34,441,539
50,191,277 33,654,470 90,665,041 97,414,312 107,644,883
52,576,463
79,141,211 67,397,688 63,218,255 98,512,704 66,249,901 87,737,817
$ 872,614,046 $ 818,665,253 $ 811,527,464 $ 825,548,736 $ 846,201,604 $ 801,524,397
$ 73,778,640 $ 75,416,868 $ 67,911,725 $ 66,963,851 $ 63,526,242 $ 62,246,621
3,099,419 503,446 (176,196) 3,118,092 2,957,611 1,553,088
$ 76,878,059 $ 75,920,314 $ 67,735,529 $ 70,081,943 $ 66,483,853 $ 63,799,709
817,060,198
793,029,963
725,555,893
696,585,571
735,833,062
723,456,738
50,191,277
33,654,470
90,665,041
97,414,312
107,64883
52,576,463
82,240,630
67,901,134
63,042,059
101,630,796
69,207,512
89,290,905
S 949,492,105 $ 894,585567 $ 879,262,993 $ 895,630,679 $ 912,685,457 $ 865,324,106
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.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
147
City of Santa Clarita
Changes in Net Assets
Last Six Fiscal Years Ended June 30, 2012
(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:
Businesstype Activities
Transit
Total busmess-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:
FISCAL YEAR
11-12
10.11
09-10
08-09
07-08
06-07
$ 33,664,470
$ 47,048,462
$ 32,116,335
$ 30,094,380
$ 27,488,731
$ 26,029,070
27,391,075
21,280,904
17,912,704
17,489,870
16,482,917
14,398,408
30,623,718
25,799,166
26,758,527
48,514,645
30,549,888
19273,980
19,282,538
11,281,552
27,835,763
32,747,618
21,817,251
20,573,077
5,8%,640
11,547,650
13,831,341
9,761,681
9,257,881
8,985,449
16,844,238
16,392,901
15,545,626
14A05,047
13,128,617
12,920,310
3,391,058
4,650,566
5,476,918
5,786,174
3,127,998
2087,949
137,093,737
138,001,201
139,477,214
158,799,415
121,853,283
104,268,243
24,930,635 24,127,043 23,348,708 22,299,379 21,506,317 18,315,106
24,930,635 24,127,043 23,348,708 22,299,379 21,506,317 18,315,106
$ 13,719,117
$ 398,181
$ 3%651 $
621,624
$ 2,737,355
$ 302,075
2,079,109
2,305,608
2,194038
1,898,022
2,291,100
2,131,060
7,209,724
4,929,602
3,162,052
260,524
355,817
3,575546
4,156,386
4,220,977
3,956,933
3,849,699
3,875,539
3,895,422
5,152,484
12,059509
15,937,913
35,138,334
26,341,684
20,182,722
16,032.433
14,090,686
16,224,269
25,079,906
22,600,793
26,641,145
28,616,388
31,325,725
15,249,634
23,636,779
39,003536
24,770,306
76,%5,641
69,330,288
57,121,490
90,484,888
97,205,824
81,498,276
Business -type Activities
Charges for services:
Transit
6,616,778
6573,879
3,181,614
3,299,263
3,216,239
5,827,778
Operating grants and contributions
7,385,264
6,913,534
10,260579
13,653,177
11,876,720
12,616,641
Capital grants and contributions
5,041,992
13,043,418
-
-
617AM
750,200
Total business -type activities program revenues:
19,044,034
26,530,831
13,442,193
16,952,440
15,710,380
19,194,619
Total primary government revenues: $ 96,009,675 $ 95,861,119 $ 70,563,683 $ 107,437,328 $ 112,916,204 $ 100,692,895
Now. (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
148
City of Santa Clarita
Changes in Net Assets
Last Six Fiscal Years Ended June 30, 2012 (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
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 cont itmtions not restricted
to specific programs
Unrestricted investment eamfngs
Miscellaneous revenue
Transfers
Total governmental activities
Busmess-type activities
Grants and contributions not restricted
to specific programs
Unrestricted investment earnings
Miscellaneous revenue
Transfers
Total lrusiness-type activities:
Total primary government:
E,&aordinary Item:
Cain from dissolution of former redevelopment
Agercy of the City of Santa Clarita (Note 17)
Change in Net Assets
Governmental activities
Business" activities;
Total primary government:
FISCAL YEAR
11.12 10611 0110 08-09 07-M 06-07
$ (60,128,096) $ (68,670,913) $ (82,355,724) $ (68,314,527) $ (24,647,459) $ (22,769,%7)
(5,886,601) 2,403,788 (9,906,515) (5,346,939) (5,795,937) 879,513
$ (66,01097) $ (66,267,125) $ (9Z26Z239) $ (73,661,466) $ (30,443,3%) $ (21,890,454)
$ 28,828,139 $ 27,701,757 $ 24,511,238 $ 27,751,506 $ 29,076,388 $ 23,790,825
34,818,426
24,996,219
25,126,278
26,820,068
24,482930
27,891,202
6,920,244
6,697,241
6,407,923
6,704,074
6,028,903
6,248,912
590,474
3,082,456
4,564,687
4,816,638
836,824
1,073,774
2380,547
2106,521
2050,857
2260,708
2433,651
1,804,923
-
3,316,058
3,221,498
3,083,353
8,490,865
8,156,017
87,883
812,475
896,708
1,015,413 1,252281 1,862901
1,509,201
3,756,112
4,871,133
6,020,940 4,566,884 4,970,193
5,371,890
9,146,163
4,161,677
3,193,421
6,844,199)
(5,808,300)
(7,477,547)
(8,006,128) (8,431,120) 441,376
147 (27,303) 82,554 48,%1 26,367
6,844,199
5,808,300
7,477,547
938,901
8,006,128
8,431,120
(441,376)
6,844,346
5,780,997
7,560,101
8,945,029
8,480,081
(415,009)
$ 80,507,951 $
81,589,699
$ 75,894,553 $
82605,022
$ 77,217,607
$ 75,825,114
40,413,284
$ 53,948,793 $ 7,137,789 $ (144021,272) $ 5,345,466 $ 44,090,147 $ 53,470,156
957,745 8,184,785 (2346,414) 3,598,090 2684,144 464,504
$ 54,906,538 $ 15,322574 $ (16,367,686) $ 8,943,556 $ 46,774,291 $ 53,934,660
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
149
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2012
(modified accrual basis of accounting)
FUND BALANCES
Fiscal Year Ended June 30, 2012
All Other
Governmental Fends
24.u^ia
,rFr,e.eral Fond
75.78%
Note: (1) Balance as restated, see Notes to Basic Financial Statements #16B.
Source: City of Santa Clarim, Administrative Services Department -Finance Division
150
FISCAL YEAR
11-12
10.11
09.10
05-09
General Fund
Reserved
$
19,546,015
$ 32,617,139
Unreserved
59,211,508
41,674,470
Nonspendable
$ 18,902,350 $
23,845,861
Restricted
Committed
66,257
12,356,339
Assigned
309,078
572,781
Unassigned
50,664,338
46,915238
Total general fund
$ 69,942023 $
87,690,219 $
77,757,523
$ 74,291,609
AE Other Governmental Funds
Reserved
$
51,195,454
$ 70,667,494
Unreserved:
Special revenue funds
2,109,198
(7,048,095)
Debtserviceb"d
(24,048,962)
(17,004,471)
Capital projects fund
33,725,531
34,502,270
Nonspendable
28,885,983
28,813,152
Restricted
46,915,%5
57,205,072
Committed
Assigned
3,275,312
3,637,410
Unassigned
(56,718,519)
(7ZM440)
Total a6 other governmental funds
$ 22,358,741 $
16,963,194 S
02,981,221
$ 81,117,198
FUND BALANCES
Fiscal Year Ended June 30, 2012
All Other
Governmental Fends
24.u^ia
,rFr,e.eral Fond
75.78%
Note: (1) Balance as restated, see Notes to Basic Financial Statements #16B.
Source: City of Santa Clarim, Administrative Services Department -Finance Division
150
FISCAL YEAR
05-06
07-06 06-07 As Restated 04-05 03-04 OZ -03
$ 34,920,547 $ 34,699,034 $ 20,786,040 $ 15,638,513 $ 12,042,182 $ 14,034,615
31,153,879 28,500,824 16,232,779 30,780,939 23,109,773 12,927,211
$ 66,074,426 $
63,199,858 $
39,018,819 $
46,419,452 $
35,151,955 $
26,%1,826
10.11
11-12
Fiscal Year
$ 51,972,970 $
48,303,588 $
80,399,389 $
30,388,825 $
41,563-581 $
9,203,674
28,377,7%
3,827570
(7,159,062)
2843,589
(867508)
30,014,266
(15873835)
(10,461,382)
(4,743,697)
(4,402,215)
(3,944,409)
(4,CB2,126)
38,050,255
4592,332
(249,111)
(698,632)
(100527)
(196)889)
$ 102,527,186 $ 36,151,718 $ 68,247,519 $ 28,131,557 $ 36,651,137 $ 34,938,925
100
80
c 80
f 40
c
0
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
$102.53
62.98
6.65
$34.93 f 6.15 $22.36
f1 .
02-03
03-04
0405
05-06 06-07 07-08
08.09
09.10
10.11
11-12
Fiscal Year
151
City of Santa Clarita
Changes In Fund Balances Of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2012
(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
xpenditures:Current
General government
Public safety
Public works
Parts and recreation
Community development
Capital outlay
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
Proceeds from Capital lease
Transferrin
Transfers -out
Total Other Financing Sources (Uses)
Extraordinary Item:
Dissolution of Santa Clarita Redevelopment Agency
Net change in fund balances
Fund balances (deficit) - Beginning of Year, as restated
Fund balances (deficit) - End of Yew
Debt service as percentage of non capital expenditures
FISCAL YEAR
2012 2011 2010 2009
$ 73,625,713 $
72,474,882 $
80,714,829 $
87,659,599
4,097,709
3,675,424
4,093,250
3,697,218
7,181,986
282,776
3,053,363
15,763,070
2,739,794
3,798,498
5,485,925
10,749,728
28,375,142
19,780,700
33,881,145
28,882,884
1,674,085
1,891,500
1,936,318
1,759,371
28,145,012
23,608,272
10,812,521
8,375,771
6,425,792
7,685,141
7,234,923
5,077,400
152,265,233
147,212,274 161,965,041
50,816,449
42,213,597
27,951,510
27,250,056
25,412,420
21,230,594
17,862,129
17,439,295
20,753,607
34,210,327
20,594,575
42,937,168
19,523,584
21,853,319
20,048,430
20,126,412
5,923,872
11,575,365
10,849,942
7,095,386
27,403,439
21,311,885
46,183,268
41,826,511
2,338,787
2,246,218
2,611,372
2,072,341
3,743,134
4,796,695
5,411,152
5,279,549
155,915,292
159,438,000
151,512,378
164,026,718
(3,650,059)
(26,240,807)
(4,300,104)
(2,061,677)
252,068 - - -
16538,674 50,869,852 18,953,115 12,150,426
(29,810,448) (64,714,376) (28,930,662) (23,281,554)
(13,019,706) (13,844,524) (9,977,547) (11,131,128)
8,317,116
(8,352,649)
(40,085,331)
(14,277,651)
(13,192,805)
100,653,413
140,738,744
155,016,395
168,601,612
$ 92,300,764 $
100,653,413 $
140,738,744 $
155,408,807
4.73%
5.10%
7.62%
6.02%
152
FISCAL YEAR
2008 2007 2006 2005 2004 2003
$ 88,088,786 $
70,576,755 $
66,164485 $
53,763,779 $
43,940,454
$ 39,813,089
5,256,748
4,=,933
6,907,826
5,127,705
5,303,309
3512,857
22,290,808
6,747,767
28,028,933
11,963,054
7,570,352
7,857,087
8,287,441
7,926,763
2,881,133
3,148,731
919,858
3,788,121
24,247,611
37,300,213
38,526,364
33,009,887
36,119,851
31,157,062
2,121,570
1,918,954
1,904,273
1,803,686
1,051,371
1,041,945
9,931,041
13,463,673
13,081,649
13,339,462
12,580,933
18,095,424
3,368,879
0561%1
12,651,674
2408,463
3,767,800
2,309,846
163,592,884
146,495,019
170,146,337
124,644,767
111,253,928
107,575,431
25,%5,196
23,411,750
24,668,150
11,217,783
12,4%244
9,282089
16,342,979
14,347,833
13,65,723
12,429,192
12,102,441
12,724,477
25,977,763
19,511,097
6,802,081
8,901,359
8,692,908
8,823,785
20,156,343
18,943,146
17,376,609
15,96049
14,226,090
11,546,673
7583,236
9,051,652
17,164,505
22,531,795
21,039,274
23,900,882
44,906,802
57,926,955
49,435,744
35,0%,683
19,251,357
33,179,578
1,927,198
2,374,870
1,367,359
2,060,319
4,332,159
14%087
4,632,979
2,298,974
2878,536
1,570,581
1,760,134
1,958,388
147,492,496
147,866,277
133,351,707
109,772661
93,840,607
102,311,909
16,100,388
(1,371,758)
36,794,630
14,872106
17,413,321
5,263572
-
13,894,752
-
-
-
1,558,097
54,235,000
-
17,700,000
-
-
1,558,097
(226,682)
-
(17,225,304)
-
2590,955
-
43,112541
27,468,089
7,865,612
8,157,999
8,278,692
7,662207
58,5332,586 10,110,390 25,725,711 2,747,917 9,902,341 (2,379590)
110,049,026 99,351,576 74,551,009 71,803.092 61.900.751 6S$RR.4U
6.39% 5.20% 5.04% 473% 8.24% 4.21%
Source: City of Santa Clanta, Administrative Services Department - Finance Division
153
CITY OF SANTA CLARITA
ASSESSED VALUATION 1D and ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
STATE ASSESSED LOCALLY ASSESSED
SECURED -UTILITY SECURED
Fiscal IMPROVE- PERSONAL IMPROV& PERSONAL OTHER
Year LAND MENTS PROPERTY TOTAL LAND MENTS PROPERTY EXEMPTIONS TOTAL
2002-03
2,743,160
314,910
180,275
3,238,345
4,742,666,578
7,042,138,889
91,308,887
(183,110,538)
11,693,003,816
2003-04
5,301,621
43,969,100
205,876
49,476,597
5,312,201,652
7,688,524,882
79,538,536
(187,628,805)
12,892,636,265
2004-05
5,420,327
11,091,534
256,894
16,768,755
6,068,433,252
8,136,867,187
73,449,031
(194,782,110)
14,083,967,360
2005-06
2,098,608
10,833,957
239,620
13,172,185
7,440,682,741
8,947,087,936
89,939,825
(211,472,197)
16,266,238,305
2006-07
2,156,981
8,312,011
197,013
10,666,005
8,556,960,792
9,766,997,767
104,509,489
(253,946,364)
18,174,521,684
2007-08
1j15,305
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
11,115,441,327
105296,475
(323,630,904)
20,313,270,595
2009-10
1,750,395
2264,780
4,015,175
9,160,567,699
11,280,024,994
112,335,544
(330,372,395)
20222,555,302
2010-11
1,431,971
2264,780
-
3,696,751
9,097,382,703
11,485,773,659
107,089,927
(372,583,638)
20,317,662,651
2011-12
1,431,971
2264,780
3,696,751
8,882,930,332
11,516,988,299
111202,431
(400,045,608)
20,111,075,454
ASSESSED VALUATION by CATEGORIES
(fend Secared and Usnecared)
Fiscal Year Ended June 30, 2012
Y PERSONAL PROPERTY
j2%
Note:
(1) Assessed valuation is based on 100% of fWI value in accordance with Section 135 of the California Revenue and Taxation Code.
Source: HdL Coren d Cone, County of Los Angeles, Auditor -Controller Office, Combined Tax Rolls 2011112
154
a LAND
1132'/.
LOCALLY ASSESSED
422,950,745
TOTALS
703,858,024
12,583,305,723
12,400,100,185
8.13%
HOME -
UNSECURED
BEFORE
TAXABLE % TOTAL
OWNER
IMPROVE- PERSONAL OTHER
OTHER
ASSESSED INCH. DIRECT
PROPERTY
MENTS PROPERTY EXEMPTIONS TOTAL
EXEMPTIONS
VALUE (DECK) RATE(2)
TAX RELIEF
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
834%
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'/.
0.0803".
206,464,204
264,708,723
558,804,055
(32,916,267)
790,596,511
21,740,884,855
21,493,597,137
13.63%
0.08327%
220,192,568
359,SW53
600,420,921
(15,127,698)
944,836,476
21,600,880,848
21,262,122,246
-1.08'/.
0.08313%
224,731,598
346,874,191
553,829,644
(13,33077)
887,372,458
21,457,646,707
21,113,942,935
-0.70%
0.07432%
223,277,279
314,286,482
548,430,090
(15,137,342)
847,579,230
21,556,659,612
21,168,938,632
016%
0.07392%
120,496,294
349,415,601
534,947,944
(13.693,787)
870,669,758
21,399,181.358
20,985,441,963
-0-97%
0.07291%
216,163.460
]5.000
M.000
15.000
MOM
5.000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
0243 03-0. W05 0106 0&07 0743 W" 0410 10.11 1112
Fiscal Year
(2) Direct Rate includes Redevelopment Agency areas.
CITY OF SANTA CLARITA
REDEVELOPMENT AGENCY (1)
ASSESSED VALUATION (2) and ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
STATE ASSESSED
SECURED (UTILITY)
FISCAL IMPROVE PERSONAL
YEAR LAND MENTS PROPERTY TOTAL
LOCALLY ASSESSED
IMPROVE PERSONAL OTHER
LAND MENTS PROPERTY EXEMPTIONS TOTAL
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
159,69065
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
2010-11
-
-
-
-
319,869,014
213,093,295
1,850,279
(3,196,475)
531,616,113
2011-12
322,803,745
214,686,716
1,933,165
(7,016,751)
532,406,875
SECURED ASSESSED VALUATION
(before other exemptions)
Fiscal Year 2011-12
■ PERSONAL PROPERTY
0.76%
RIMPROVEMENTS
39.80 %
LAND
asaa%
(1) -The Redevelopment Agency of the City of Santa Clarita was established on November 28, 1989, putsuant to the State of Califomia 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 Homeownets Tax Relief of that year.
(2) -Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
Source: County of Los Angeles, Auditor-Controllafru Division
156
LOCALLY ASSESSED TOTALS
HOME -
UNSECURED TOTALS TAXABLE OWNER
IMPROVE- PERSONAL OTHER BEFORE ASSESSED VALUE PROPERTY
MENTS PROPERTY EXEMPTIONS TOTAL BASE YEAR BASE YEAR VALUE GROWTH TAXRELIEF
5,%3,748
19,053,059
(30,000)
25,006,807
326,592,390
(266,351,517)
60,040,873
17,324,131
1,890,000
6,271,382
19,035,089
(33,000)
25,274,471
345,845,881
(266,35017)
79,494,364
19,453,491
1,923,600
6,326,173
22,151,970
(33,000)
28,445,143
373,564,307
(266,35017)
107,212,790
27,718,426
2,161,147
5,901,959
23,034,914
(91,00(l)
28,845,873
476,378,928
(266,35017)
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
28,04,577
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
34,102,838
46,361,945
(84,500)
80,380,283
636,114,144
(266,351,517)
369,762,627
(15,821,204)
1,921,661
21,240,432
62,507,206
(84,500)
83,463,138
615,079,251
(266,351,517)
348,727,734
(21,034,893)
1,871,456
34,353,633
46,665,422
(102,000)
80,917,055
613,323,930
(266,351,517)
346,972,413
(1,755,321)
1,865,922
UNSECURED ASSESSED VALUATION
(before other Exemption)
Fiscal Year 2011-12
O PERSONAL d,.PROVSEM
PROPERTY $7.60%x'. 42W
Ii'
CITY OF SANTA CLARITA
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
FISCAL YEAR
CATEGORY 11-12 10-11 09-10 08-09 07-08
ResidmtW
S 15,212,586,674
S 15,239,936,469
S 15,093,632,637
Comenereial
2,748,247,727
2,820,296,027
2,729,669,423
Industrial
1,455,126,754
1,463,696,151
1,451,053,867
Irrigated
3,016,072
3,004,749
3,630,743
Dry (arm
-
-
8,243,171
Recreational
106,506,146
121,791,852
121,51053
Institutional
125,982,002
127,363,481
125,868,861
Government
206,717
205,173
206,850
Miscellaneous
847,359
841,034
843,038
Vacant land
533,608,937
308,820,538
636,182,476
SBE Nommitary
3,254,751
3,573,175
3,573,175
Possessory Int.
13 1,534263
136,599,828
150,671,347
Unsecured
847,579230
887,372,458
944,836,476
Unknown
-
-
-
S 16,491,425,500
S 16,165,919,271
2,541,908,257
2,081,576,763
1,420,480,569
1,293,080,539
3,559,558
3,489,768
119,459,165
114,868,032
136,418,924
130,907,129
201,629
197,676
810,312
664,562,300
664,792,342
1,073,171
8,243,171
158,723,783
239,115,623
871,039,834
790,596,511
TOTALS: S 21.168.496.612 S21.113,500935 S 21261,680246 $ 22,408,852,690 S 21.493,597,137
1
1
1
1
ASSESSED VALUE- TAXABLE PROPERTY
Last Ten Fiscal Years
0304 0445 0506 0607 01-00 0849 09.10 1041 11-12
Fiscal Year
Source: Hdi- Coren & Cone, Los Angeles County Assessor 2011/12 Combined Tax Rolls.
158
09.X..1
•S.Mi
•9.Xu]
•sanw
09.X..5
. 111 4
:.
p
0304 0445 0506 0607 01-00 0849 09.10 1041 11-12
Fiscal Year
Source: Hdi- Coren & Cone, Los Angeles County Assessor 2011/12 Combined Tax Rolls.
158
09.X..1
•S.Mi
•9.Xu]
•sanw
09.X..5
FISCAL YEAR
06-07 05-06 04-05 03-04 02-03
S 13,962,275,972
S 12,569,640,999
$ 11,097,987,787
$ 10,221,634,945
S 9,373,657,630
1,836,340,797
1,588,835,810
1,258,389,787
1,132,585,601
1,043,922,879
1,148,469,489
980,395,598
833,455,573
817,508,597
735,063,812
29,374,674
28,272,540
4,351,050
3,962,743
3,933,315
49,088,244
48,512,253
45,145,241
43,542,990
29,655,961
90,435,287
94,916,719
84,727,948
94,694,674
60,212,317
94,705,673
91,512,643
80,606,769
113,908,577
102,142,853
194,922
190,000
- -
493,814
484,173
795,449
779,859
764,577
667,091
7,591,441
656,660,955
554,551,820
440,215,418
280,744,871
212,233,528
10,666,005
13,172,185
16,768,755
49,476,597
3,238,345
222,654,730
205,526,182
201,323,600
153,302,360
109,259,714
730,697,804
659,990,996
641,526,760
664,760,834
703,858,024
83,525,492
103,503,882
36,994,610
29,585,002
14,846,193
S 18.915,885,493 S 16939,401 486 S 14,742.257,875 S 13,606.868,696 S 12.400100,185
Notes: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum
tate 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.
159
CITY OF SANTA CLARITA
ASSESSED VALUE - USE CATEGORY SUMMARY
Fiscal Year 2011-12
TOTALS: 54,462 S 21,556,217,612 100.00% S 442.716,677 S 21,113,500,935 100.000%
ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2011-12 Fiscal Year 2011-12
® Industrial
Industrial
693% ■ All Othen
733%
Residential
72.18%
Source: HdL Coren & Cone, Los Angeles County Assessor 2011112 Combined Tab Rolls.
IG91
NET
ASSESSED
TAXABLE
CATEGORY
PARCELS
VALUE
PERCENT EXEMPTIONS
VALUE
PERCENT
Residential
48,991 $
15$66,333,311
70.82% S
26,396,842
$ 15,239,936,469
72.181%
Commercial
935
2,839,302,666
13.17%
19,006,639
2,820,296,027
13.358%
Industrial
702
1,457,762,459
6.76%
(5,933,692)
1,463,696,151
6.933%
Irrigated
6
3,016,072
0.01%
11,323
3,004,749
0.014%
Recreational
34
109,325,156
0.51%
(12,466,696)
121,791,852
0.577%
Institutional
91
346211,310
1.61%
218,847,829
127,363,481
0.603%
Government
5
207,910
0.001%
2,737
205,173
0.001%
Miscellaneous
10
847,359
0.004%
6,325
841,034
0.004%
Vacant land
3,688
535,080,373
2.48%
226259,835
308,820,538
1.463%
SBE Nommitary
(11)
3254,751
0.02%
(318,424)
3,573,175
0.017%
Possessory Int
(2,139)
132,159,673
0.61%
(4,440,155)
136,599,828
0.647%
Unsecured
(6,398)
862,716,572
4.00%
(24,655,886)
887,372,458
4.203%
Unknown
TOTALS: 54,462 S 21,556,217,612 100.00% S 442.716,677 S 21,113,500,935 100.000%
ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2011-12 Fiscal Year 2011-12
® Industrial
Industrial
693% ■ All Othen
733%
Residential
72.18%
Source: HdL Coren & Cone, Los Angeles County Assessor 2011112 Combined Tab Rolls.
IG91
CITY OF SANTA CLARITA
DIRECT and OVERLAPPING PROPERTY TAX RATES
(rate per $100 of assessed value)
Last Ten Fiscal Years
CASTAIC
LOS LAKE COUNTY COUNTY
Fiscal ANGELES WATER SCHOOL SANITATION FLOOD
Year GENERAL COUNTY AGENCY DISTRICTS DISTRICTS CONTROL TOTAL
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
1008-09
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
2010-11
1.000000
0.000000
0.070600
0.086830
0.000000
0.000000
1.157430
2011-12
1.000000
0.000000
0.070600
0.091457
0.000000
0.000000
1.162057
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2011-12
1200000
1.000000 GENERAL
0.800000
o.MD"
0wo4400
0200000
0.000040
CASTAIC LAKE SCHOOL
WATERAGENCY DISTRICTS SANITATION
DISTRICTS
LA COUNTY
FLOOD CONTROL
Source: HdL Coren & Cone, Los Angeles Co mty Assessor 2011.12 Tax Rate Table
161
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 Rnte
Total Dlreet Rate
City Share
0.00143
rates applied by the government preparing
Prop. 13
the statistical section information -
of 1%
0.14050
LA County Accum Cap Outlay (00 120)
plus appbcable
Newhall Scholl District (581.01)
Roll Year per Prop. 13
Debt Rates
Total City Rates
voter roved debt
0.02250
2011-12 0.099110
0.000000
0.099110
1.07060°/.
0.07291%.
Agency 2011-12
City of Santa Clarita Tax District 1 (249.01) 0.05730 Notes: General fund tax rates are
Castaic Lake Water Agency (302.01) 0.05780 representative and based upon the direct
Children's Institutional Tuition Fund (400.21) 0.00283 and overlapping rates fm the largest
Consolidated Fire Protection District of LA Co. (007.30) 0.16340 General Fond tax rates area (TRA) by net
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)
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
LA County Library (003.01)
0.02360
LA County Fire - Ffw (007.31)
0.00323
LA County Flood Control Improvement District (030.10)
0.00176
LA County Flood Control Maintenance (030.70)
0.009%
LA County General (001.05)
0.14050
LA County Accum Cap Outlay (00 120)
0.00009
Newhall Scholl District (581.01)
0.08350
Santa Claris Community College (814.04)
0.03740
Santa Claris Street Light Maintenance #2 (249.32)
0.02250
Santa Claris Valley Sanitation Dist La Co.
0.02500
Valencia Areawide Landscape TIA S.C.
0.01924
William S. Hart Elementary School Fund (757.07)
0.04290
William S. Hart Union High (757.02)
0.08150
Total Prop. 13 Rate:
1.00000
Castaic Lake Water Agency (302.01)
0.07060
William S. Hart Un.Hsd Debt Services (757.51)
0.01162
Newhall Elementary School District Debt Services 1999 Ser. B (581.53)
0.02214
Newhall Elementary School District Debt Services 1999 Ser. A (581.52)
0.01401
Santa Clarita Community College Debt Services 2001 Ser. 2005 (814.54)
0.00709
Santa Clarita Community College Debt Services 2006 Ser. 2007 (814.55)
0.00807
Santa Clarita Community College Debt Services 2005 Refunding Bonds (814.53)
0.00477
Santa Clarks Community College Debt Services 2001 Ser. 2003 (814.52)
0.00306
William S. Han Unified Debt Services 2001 Ser. B (757.52)
0.01591
William S. Hart Unified Debt Services 2008 Ser. A (757.53)
0.00478
Total Tax Rate
0.16206
Source: HdL Coren & Cone, Los Angeles County Assessor 2011/12 Tax Rate Table
162
is based on the largest RDA tax rate area
(TRA) and includes only mte(s) from
indebtedness adopted prior to 1989 per
California State statute. RDA direct and
overlapping rates are applied only to the
incremental property values. In 1978,
California voters passed Proposition 13
which set the property tax at a 1.00% fixed
amount. This 1.00% is shared by all the
taxing agencies for which the subject
property resides within. In addition to
1.00% fixed amount, property owners are
charged taxes as a percentage of assessed
property values for the payment of any
voter approved bonds.
CITY OF SANTA CLARITA
PRINCIPAL PROPERTY TAXPAYERS
Current and Prior Fiscal Year
AR Others 20,068,697,192 95.09 21,364,875,460 95.34
Total Assessed Valuation S 21,104,451,485 100.00 % $ 22,409,679,203 100.29%
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Corer & Cone, LA County Assessor 2011/12 Combined Tax Rolls
163
FISCAL YEAR 2011-12
FISCAL YEAR 2010-11
PERCENTof
PERCENT of
Number
TOTAL
TOTAL CITY
Number
TOTAL
TOTAL CITY
of
ASSESSED
ASSESSED
of
ASSESSED
ASSESSED
OWNER/TAXPAYER
Parcels
VALUE
VALUE
Parcels
VALUE
VALUE
Valencia Town Center
18
$ 343,427,920
1.63 %
19 S
311,406,350
1.48 %
VTC Business Center
10
153,382,773
0.73
10
152,985,350
0.72
EQR Valencia LLC
218
95,241,618
0.45
218
94,754,176
0.45
Walman Real Estate Business Trust
9
77,463,294
0.37
9
75,681,373
0.36
Rreef America Reit H Corporation
2
70,987,026
0.34
2
75,552,864
0.36
Time Warner NY Cable LLC
14
69,398,405
0.33
12
72,006,584
0.34
Casden Santa Clarita LLC
25
61,750,408
0.29
25
80,989,935
0.38
DSEA River Oaks LLC
7
55,302,873
0.26
7
54,889,561
0.26
ERP Operating LP
3
54,801,133
0.26
3
54,459,300
026
Mann Biomedical Park LLC
2
53,998,843
0.26
n/a
0,00
Prado Town Center West LLC
n/a
0.00
263
72,078,250
0.34
Total
308
1,035,754,293
4.91 %
1,044,803,743
4.95 %
AR Others 20,068,697,192 95.09 21,364,875,460 95.34
Total Assessed Valuation S 21,104,451,485 100.00 % $ 22,409,679,203 100.29%
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Corer & Cone, LA County Assessor 2011/12 Combined Tax Rolls
163
164
CITY OF SANTA CLARITA
PROPERTY TAX LEVIES, TAX COLLECTIONS, AND DELINQUENCY
Last Ten Fiscal Years
FISCAL TAXES PERCENT DELINQUENT PERCENT
YEAR LEVIED COLLECTIONS COLLECTIONS AMOUNT DELINQUENCY
2002-03
8,494,397
8274,896
97.4%
219,501
2.58%
2003-04
9271,388
9,066,213
97.8%
205,175
2.21%
2004-05
10,118,983
9,878,450
97.6%
240,533
2.38%
2005-06
11,593,852
11,292,337
97.4%
301,515
2.60%
2006-07
12,804,630
12,317,614
96.2%
487,016
3.80%
2007-08
14,483,825
13,754,184
95.0%
729,641
5.04%
2008-09
11,925285
11,361,604
95.3%
$63,681
4.73%
2009-10
14202,626
13,711,940
96.5%
490,686
3.45%
2010-11
14,172,030
13,829,640
97.6%
342,390
2.42%
2011-12
14,299,999
13,999,770
97.9%
300,229
2.10%
16.000.000
14.000.000
12.000.000
10.000,000
8.000.000
8,000.000
4,000,000
2,000,000
0
NOTES:
TAX COLLECTIONS&DELINQUENCY- LAST TEN FISCAL YEARS
2002-03 2003-04 200405 2005-06 2006-07 2007-08 200849 2009.10 2010-11 2011-12
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 Los Angeles, Department of Auditor -Controller
165
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
GOVERNMENTAL ACTIVITIES
FISCAL
YEAR
CERTIFICATES
OF PARTICIPATION (1) (3)
LOANS
NOTES BONDS (2)
TAX ALLOCATION
BONDS (4) (5)
CAPITAL
LEASES
TOTAL
2002-03
18,975,000
Z665AO
4,213,913
2,507,371 -
-
-
183,909
28,545,193
2003-04
18,3351000
2,040,000
6,333,828
- -
-
-
103,275
26,812,103
2004 -OS
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
15,790A00
15525,000
3593,734
- 13575,000
29,860,000
818501000
23,676
87,217,410
200849
14,790,000
15,525,000
2823,907
- 13,330,000
29,860,000
818501000
11,370
85,190,277
2009-30
13,760,000
15525,000
2017,793
- 13,075,000
29,460,000
8,730,000
1,624
82,569,417
2010-11
12,700,000
15,525,000
1,413,786
- 12,80.5,000
29,040,000
8,605,000
-
80,088,786
2011-12
11,610,000
15,490,000
1,040,000
- 12,52500
28,605,000
8,480,000
242,417
77,992417
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 $22940,000 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 yea 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 Jamhary 16, 2107, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue
Bonds, Series 2007 for the acquisition of rightof-way.
(3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15525,000 in Certificates of Participation
for the acquisition of open space and parkland.
(4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non Housing Tax Allocation Bonds
to fund certain redevelopment projects within the Newhall Redevelopment Project area.
(5) On Juice 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 Clanta, Administrative Services Department - Finance Division
166
600
500
400
300
200
100
0
OUTSTANDING DEBT per CAPITA
Last Ten Fiscal Years
00 $qgq $44
$468 ._.$454
$194 $176 $160 $206
$150 _...
02-03 03-04 0405 05-06 06-07 07-08 08-09 09-10 10.11 11-12
Fiscal Year
167
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
- 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%
467.50
5%
- -
-
80,088,786
0.38%
454.22
N/A
- -
-
77,992,417
0.37%
439.53
N/A
600
500
400
300
200
100
0
OUTSTANDING DEBT per CAPITA
Last Ten Fiscal Years
00 $qgq $44
$468 ._.$454
$194 $176 $160 $206
$150 _...
02-03 03-04 0405 05-06 06-07 07-08 08-09 09-10 10.11 11-12
Fiscal Year
167
City of Santa Clarita
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
PERCENTAGE
OUTSTANDING GENERAL BONDED DEBT of
TAXABLE DEBT
FISCAL REVENUE CERTIFICATES of ASSESSED PER
YEAR POPULATION (1) BONDS PARTICIPATION TOTAL VALUE CAPITA
2002-03
162,875
-
21,640,000
21,640,000
0.19%
133
2003-09
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
200609
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
2010-11
176,320
12,805,000
28,225,000
41,030,000
0.19%
233
2011-12
177,445
12,525,000
27,100,000
39,625,000
0.19%
223
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
per CAPITA
Last Ten Fiscal Years
02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12
Source: (1) State of California, Finance Department
Fiscal Year
168
3
City of Santa Clarita
Direct and Overlapping Bonded Debt
June 30, 2012
2011-12 Assessed Valuation 520918&74.782 (Net of Redevelopment Agency
Incremental Value of $350,063.850
2011-12 Population 177,445
Pencent City's Stowe
Total Debt Applicable of Debt
Oy3Ui&Il2 TO City fll U696Q012
OVERLAPPING TAX AND OVERLAPPING BONDED DEBT:
bonds and non -bonded capital lease obligations.
Los Angeles County Flood Control District
3 37,195,D00
2258 %
$ 839,863
Santa Clarita Community College District
176,770,338
62053
109,647,$61
William S. Had Union Eligh School District
232,21$,606
62.043
144,075,390
William & Had Union High School District -Community Facilities District No. 87-1
11545,000
100.000
1,50.5,0110
William S. Hart Union High School District- Community Facilities District No. 88-1
3,975,ODO
10D.000
$775,0DO
William S. Had Union High School District- Community Facilities District No. 89-1
455,000
100.000
455,000
William S. Had Union lfigh School District- Community Facilities District No. 90-1
605,0110
100.000
605,000
Los Angeles County Community College and Unified School Districts
147$4915,000
0.00002
2,957
Castaic Union School District
7,574,171
26.184
1,983,221
Newhall School District
25,235,000
57.479
14,504879
Saugus Union School District
46,396,345
73.808
34,244,214
Saugus Union School District Community Facilities District No. 2OD6-21mprovement Area No. 1
7,785,0110
100.000
7,785,ODO
Sulphur Springs Union School District
6,068,372
71.601
4,345,076
City of Santa Claris Open Spxe and Parkland Assessment Distrkt
15A90A00
100.000
lSA90AW
City of Santa Clarity Community Facilities District No. 2002-1
16,650,000
10D.000
16,650,000
City of Santa Clarita 1915 Act Bonds
945,000
100.000
945,000
Los Angeles County Regional Paek and Open Space Assessment District
170,725,000
2.244
3,831,069
Total Overlapping Tax and Assessment Debt
$ 360.924,477
DIRECT AND OVEREAP G GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
L474,122,759
2244 %
33,079,315
Los Angeles County Superintendent of Schools -Certificates of Participation
11,269,678
2.244
252,892
Los Angeles County Sanitation District No. 23 Authority
3,364,704
0.162
5,451
Los Angeles County Sanitation District No. 32 Authority
30,239,232
64.247
19,427,799
Santa Clarita Community College District- Certificates of Participation
20,755,ODO
62.053
12,879,1170
William S Had Union High School District -Certificates of Participation
6,000,0110
62.043
3,772580
Castak Union School District- Cedifiraws, of Participation
4,115,000
26.184
1,077,472
Newhall School District- Certificates of Participation
3570,000
57.479
2052000
Saugus Union School District - Certificates of Participation
29,015,000
73.808
21A75,391
Sulphur Springs Union School District- Certiflrates of Participation
31,687,492
71.602
22,688978
Los Angeles Unified School District- Certificates of Participation
419,851,037
0.00002
94
City of Sand Clarita Certificates of Participation
24.135AM
100AD000
KMA00
Tonal Gross Direct and Overlapping General Fund Debt
5 140,7%,962
Ins Loa Angeles County General Fund Obligations supported by landfill revenues
374,707
Total Net Direct and Overlapping General Fund Debt
S 140,361,255
Total Direct Debt
$ 39,625,000
Gena Overlapping Debt
462035,439
Total Gross Direct and Overlapping Debt
5 501,660,439 -,
Net Total Overlapping Debt
$ 461,660.732
Net Combined Total Debt
S 51)1285,732
11) Percentage of overlapping agency's assessed valuation located within boundaries of the City
(2) Excludes lax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation
bonds and non -bonded capital lease obligations.
Ratios to Adjusted Assessed Valuation
Per Caph,
Total Direct Debt ($39,625,ODD)
0.19%
SZO34M
Gross Combined Tots( Debt
241%
87831
Net Cumbi ned Total Debt
241%
32,875.02
STATE SMOOL BUILDING AID REPAYABLE AS OF OW21112 S(
Source: Muniservkes
169
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 Emit
as a percentage of debt limit
FISCAL YEAR
11-12 10-11 09-10 08-09
$ 21,399,181,358 $
21526,384,928 $
21,457,647,247 $
21,600,880,848
25%
25%
25%
25%
5,349,795,340
5,381,596,232
5,364,411,812
5,400,220,212
15% 15% 15% 15%
802,469,301 807,239,435 804,661,772 810,033,032
$ 802,469,301 $ 807,239,435 $ 804,661,772 $ 810,033,032
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
170
0%
0%
FISCAL YEAR
0748 06-07 05-06 04-05 03-04 02-03
$ 21,740,884,855 $ 19,177,131,442 $ 17,160,386,817 $ 14,937,115,985 $ 13,795,632,501 $ 12,583,305,723
25% 25% 25% 25% 25% 254
5,435,221,214 4,794,282,861 4,290,096,704 3,734,278,996 3,448,908,125 3,145,826,431
15% 15% 15% 15% 15% 15%
815,283,182 719,142,429 643,514,506 560,141,849 517,336,219 471,873,965
$ 815,283,182 $ 719,142,429 $ 643,514,506 $ 560,141,849 $ 517,336,219 $ 471,873,965
0% 0% 0% 0% 0% 0%
900
8w
700
600
sw
400
300
200
100
0
02-03 03M 0405 65-06 0607 07-08 0&09 09-30 10-11 11-12
LEGAL DEBT MARGIN
Last Ten Fiscal Years
FISCAL YEAR
171
City of Santa Clarita
Pledged -Revenue Coverage
Last Ten Fiscal Years
NOTE (1) Includes Other revenues, Transfers -in, and Capital contributions
(2) Includes Transfers -out and Other expenses
172
TRANSIT
LESS
NET
Fiscal
TRANSIT
OPERATING
AVAILABLE
DEBT SERVICE
Year
REVENUES (1)
EXPENSES (2i
REVENUES
Principal
Interest
COVERAGE
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%
200506
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
76,612,418
23,014,324
31598,094
384,846
42,172
1.60%
200110
21,179,438
23525,855
(2,346,417)
236,999
23,149
1.23%
2010-11
32507,582
24,270533
8,237,048
248,304
11,844
0.80%
2011-12
26,133,433
25,175,688
957,745
-
-
-
NOTE (1) Includes Other revenues, Transfers -in, and Capital contributions
(2) Includes Transfers -out and Other expenses
172
CITY OF SANTA CLARITA
DEMOGRAPHIC and ECONOMIC STATISTICS
Last Ten Calendar Years
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1.00%
YEAR
Sources: t 1) State of Califomia, Finance Department, as of 1/12012
(2) U.S. Department of Cownerce, 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 act available.
(3) State of Califomia, Department of Employment Development (EDD)
173
AVERAGE
AVERAGE
PER
CITY OF
ANNUAL
LOS ANGELES
ANNUAL
CAPITA
TOTAL
SANTA CLARITA
PERCENTAGE
COUNTY
PERCENTAGE
PERSONAL
PERSONAL
UNEMPLOYMENT
YEAR
POPULATION (1)
INCREASE
POPULATION (1)
INCREASE
INCOME (2)
INCOME (2)
RATE (3)
1603
161,744
5.39°%
9,756,914
1.74%
31,452
322,272,131
7.00%
1004
163,396
1.02%
9,806,944
0.51%
33.179
338,209,805
6.50%
2005
165,431
1.25%
9,816,153
0.09%
35,188
357,193,633
5.30%
2006
165,243
-0.11%
9,798,609
-0.18%
36,917
385,732,651
410%
2017
173,979
5.29%
9,780,808
-0.18%
39,066
402,107,608
2.700/6
2018
174,355
0.22%
9,785,474
0.05%
44,727
567,707,000
4.70%
200
175,103
0.43%
9,801,096
0.16%
43,119
550,832,000
7.70%
2010
176,056
0.54%
9,822,121
0.21%
43,999
565,365,000
7.70%
1011
176,320
0.15%
9,818,605
-0.04%
N/A
N/A
7.60%
2012
177,445
0.64%
9,884,632
0.67%
N/A
N/A
690%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1.00%
YEAR
Sources: t 1) State of Califomia, Finance Department, as of 1/12012
(2) U.S. Department of Cownerce, 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 act available.
(3) State of Califomia, Department of Employment Development (EDD)
173
CITY OF SANTA CLARITA
PRINCIPAL EMPLOYERS...
Current Fiscal Year and Three Fiscal Years Ago
Total
A0 Others
(1) Largest firms
• As of February 2012
NOTE: (1) Non-governmental employers
11,461 49.10% 10,276 43.56%
I L879 50.90% 13.316
23,340 100.00% 23,592 100.00%
Source: 2012 Santa Clarity Valley - Real Estate and Economic Outlook
174
2012•
2009
PERCENT
PERCENT
NUMBER
of
NUMBER
of
Of
TOTAL
of
TOTAL
EMPLOYER
EMPLOYEES
EMPLOYMENT
EMPLOYEES
EMPLOYMENT
Sin Flag Magic Mountain
3,800
16.28%
3,689
15.64%
Princess Cruises
1,625
6.96%
2,100
8.90%
Henry Mayo Newhall Memorial Hospital
1,400
6.00%
1,212
5.14%
Quest Diagnostics (formerly Speciality laboratories)
850
3.64%
725
3.07%
The Madees College
812
3.48%
755
3.20%
Woodwa i HRT (formerly HR Textron)
790
3.38%
845
3.58%
Wahnad
624
2.67%
N/A
N/A
Pharmavite
550
2.36%
500
2.12%
Aerospace Dynamics
510
2.19%
N(A
N/A
California Institute of Arts
500
2.14%
450
1.91%
Total
A0 Others
(1) Largest firms
• As of February 2012
NOTE: (1) Non-governmental employers
11,461 49.10% 10,276 43.56%
I L879 50.90% 13.316
23,340 100.00% 23,592 100.00%
Source: 2012 Santa Clarity Valley - Real Estate and Economic Outlook
174
CITY OF SANTA CLARITA
FULL-TIME and PART-TIME CITY EMPLOYEES
by FUNCTION
Last Ten Fiscal Years
FISCAL YEAR
Function 11-12 10-11 09-10 08-09 07-08 06-07 05-06 04-05 03-04 02-03
General goverarnent
84.35
85.75
89.75
95.75
91.75
86.00
96.00
79.00
78.00
78.00
Public safety (1)
-
-
-
-
-
-
-
-
-
-
Public works
126.00
127.00
128.00
135.50
136.50
133.50
115.00
146.00
138.00
150.00
Community development
30.50
33.00
33.00
36.00
35.00
33.00
36.00
20.00
20.00
20.00
Parks and Recreation
105.90
106.50
110.50
111.50
110.50
108.00
106.00
101.00
99.00
84.00
Transit
13.00
12.00
12.00
14.00
11.00
11.00
8.00
8.00
8.00
7.00
Totals
359.75
36425
373.25
392.75
384.75
371.50
361.00
354.00
343.00
339.00
400.00
Man
380.00
370.0
MOM
350.00
390.011
3..30.00
320.00
310.00
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
02-03 03-04 0405 05-06 0607 07-05 08-09 09-10 10-11 11-12
Fiscal Year
(I 1 Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
175
City of Santa Clarita
Operating Indicators
by Function
Last Ten Fiscal Years
FISCAL YEAR
Function 11-12 10-11 0940 08-09 07-08 06-07 05-06 04-05 03-04 02-03
Police:
Puking citation issued (1)
5,521
6,577
5,114
4,126
5,257
4,587
6,042
5,960
5,040
3,893
Parking revenue collated
$ 335,663
$ 323,408 $
238,478 $
235,634
$ 788,076 $
334,927 $
27,257 $
10,427 $
10,324
$ 7,011
Public works:
Street resurfacing (rules)
24.0
24.0
33.8
14.0
15.4
15.4
16.5
125
7.5
6.5
Parks and Recreation:
Number of recreation classes
2,106
2,080
2,447
2,284
2,393
2,535
2,357
2,443
2,469
2167
Number of facility rentals (times)
11,042
10,754
10,239
91801
9,767
19,645
19A35
17,739
151005
12,765
Transit
Number of customers served (2)
3,612060
3,724,490
3,922p52
4,210,842
3,821,299
3,733,299
3,718,640
3527,000
3,429,913
3,006,739
NOTE: (1) The City of Santa Clarita contracts Los Angeles County, Sheriff Department for its Police services.
The number of citation issued and mmtey collected are within the Gty's boundaries.
(2) Number of customers served include those outside of the City boundaries.
Source: City of Santa Clarita, Administrative Services Department -Fmarce Division
176
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 Goan -Jurisdiction)
Parks and recreation
Number of parks
Community centers
Transit:
Stations
FISCAL YEAR
11-12 10.11 09-10 08-09 07.08 06-07 05-06 04-05 03-04 02-03
4%
4%
4%
4%
4%
496
4%
462
462
452
15,081
14,963
14,939
14,739
14,429
14,000
13,200
13,000
12,000
12,000
171
170
166
172
176
166
167
165
158
151
6
1
6
5
4
4
5
5
4
2
24
23
20
20
20
19
18
17
16
16
1
1
1
1
1
1
1
-
-
-
4
4
4
4
4
4
4
4
4
4
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
177
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