HomeMy WebLinkAbout2014-04-22 - AGENDA REPORTS - COMPREHENSIVE ANNUAL FIN RPT (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 16
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
April 22, 2014
Darren Hem3ndez
FISCAL YEAR 2012-13 COMPREHENSIVE ANNUAL
FINANCIAL REPORT AND OTHER RELATED REPORTS
Administrative Services
RECOMMENDED ACTION
City Council approve the Comprehensive Annual Financial Report and other related reports for
fiscal year ending June 30, 2013.
BACKGROUND
The City's independent audit firm, McGladrey LLP, has completed the City's annual audit for
fiscal year ending June 30, 2013. McGladrey 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.
The Comprehensive Annual Financial Report (CAFR) reflects the City's strong financial
condition with continued growth of the General Fund balance.
Based on the audit performed, McGladrey LLP issued an unmodified "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, 2013.
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In accordance with Statements on Auditing Standards (SAS) 114, the Auditor's Communication
With Those Charged With Governance, a Report to the Honorable Mayor and Members of the
City Council has been prepared by McGladrey LLP to provide specific information related to the
audit scope and performance.
In addition, the following reports were prepared for the fiscal year ending June 30, 2013 by
McGladrey LLP:
Appropriations Limit Calculation
Single Audit Report
Transit Enterprise Fund of the City of Santa Clarita
City of Santa Clarita Air Quality Improvement Fund
Santa Clarita Open Space Preservation District
ALTERNATIVE ACTIONS
No feasible alternative action has been identified by staff.
FISCAL IMPACT
None.
ATTACHMENTS
FY 2012-13 Comprehensive Annual Financial Report available in the City Clerk's Reading File
Report to the City Council available in the City Clerk's Reading File
Santa Clarita Appropriations Limit Calculation available in the City Clerk's Reading File
Santa Clarita Single Audit Report available in the City Clerk's Reading File
Santa Clarita Transit Report available in the City Clerk's Reading File
Santa Clarita Open Space Preservation District Report available in the City Clerk's Reading File
City of Santa Clarita AQMD Report available in the City Clerk's Reading File
— (Pl—
City of Santa Clarita, California
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2013
PREPARED BY THE DEPARTMENT OF ADMINISTRATIVE SERVICES
CITY OF SANTA CLARITA, CALIFORNIA
City of Santa Clarita
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2013
�q
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting............................................................ A
Officials of the City of Santa Clarita......................................................................................................... vii
OrganizationChart .............................................................................................................................viii
Mapof the City of Santa Clarita............................................................................................................... ix
FINANCIAL SECTION
IndependentAuditor's Report ................................................................................................................. 1
Management's Discussion and Analysis (Unaudited).................................................................................... 3
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Position..........................................................................................................13
Statementof Activities..............................................................................................................14
Fund Financial Statements:
Governmental Fund Financial Statements
BalanceSheet....................................................................................................................17
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position..........................................................................................19
Statement of Revenues, Expenditures and
Changes in Fund Balances................................................................................................20
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the
Statement of Activities.......................................................................................................23
Proprietary Fund Financial Statements:
Statement of Net Position......................................................................................................24
Statement of Revenues, Expenses and Changes in Net Position.....................................................25
Statementof Cash Flows.......................................................................................................26
Fiduciary Fund Financial Statements:
Statement of Net Position......................................................................................................28
Statement of Changes in Net Position....................................................................................... 29
Notes to Financial Statements..........................................................................................................33
City of Santa Clarita
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30. 2013
FINANCIAL SECTION, Continued
Required Supplementary Information (Unaudited)
Schedules of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual:
GeneralFund....................................................................................................................74
Bridge and Thoroughfare Special Revenue Fund.......................................................................75
Public Library Special Revenue Fund......................................................................................76
Landscape Maintenance District #1 Special Revenue Fund..........................................................77
Schedule of Funding Progress....................................................................................................78
Notes to Required Supplementary Information................................................................................79
Supplementary Information:
Non -Major Governmental Funds:
Description of Nonmajor Governmental Funds...........................................................................81
CombiningBalance Sheet....................................................................................................84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .............................92
Schedules of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual:
Developer Fee Special Revenue Fund.............................................................................
100
Bikeway Special Revenue Fund......................................................................................
101
Gas Tax Special Revenue Fund......................................................................................
102
Proposition A Special Revenue Fund...............................................................................
103
Special Assessment Special Revenue Fund......................................................................
104
State Park Special Revenue Fund...................................................................................
105
TDA Special Revenue Fund...........................................................................................
106
Traffic Safety Special Revenue Fund................................................................................
107
CDBG Special Revenue Fund........................................................................................
108
AQMD Special Revenue Fund........................................................................................
109
Stormwater Special Revenue Fund..................................................................................
110
Federal Aid Urban Special Revenue Fund.........................................................................
111
BJA Law Enforcement Special Revenue Fund....................................................................
112
Supplemental Law Grant Special Revenue Fund................................................................
113
HOME Special Revenue Fund........................................................................................
114
Library Facilities Fees Special Revenue Fund....................................................................
115
Public Education and Government Special Revenue Fund ....................................................
116
Proposition C Special Revenue Fund...............................................................................
117
Federal Grants Special Revenue Fund.............................................................................
118
Measure R Special Revenue Fund..................................................................................
119
Tourism Marketing District Special Revenue Fund...............................................................
120
Open Space Preservation District (OSPD) Special Revenue Fund ..........................................
121
Miscellaneous Grants Special Revenue Fund.....................................................................
122
Park Dedication Special Revenue Fund............................................................................
123
General Capital Projects Fund.............................................................................................................124
Public Financing Authority Capital Projects Fund................................................................................125
Public Financing Authority Debt Service Fund.....................................................................................126
City of Santa Clarita
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30. 2013
FINANCIAL SECTION, Continued
Internal Service Funds:
Description of Internal Service Funds.................................................................................... 127
Combining Statement of Net Position.................................................................................... 128
Combining Statement of Revenues, Expenses and Changes in Net Position ................................... 129
Combining Statement of Cash Flows..................................................................................... 130
Fiduciary Funds:
Description of Fiduciary Funds............................................................................................. 131
Combining Statement of Fiduciary Assets and Liabilities — Agency Funds ...................................... 132
Schedule of Changes in Fiduciary Assets and Liabilities — Agency Funds ....................................... 134
STATISTICAL SECTION (Unaudited)
Tableof Contents.............................................................................................................................
137
NetPosition by Component................................................................................................................
138
Changesin Net Position....................................................................................................................
140
Fund Balances of Governmental Funds.................................................................................................
144
Changes in Fund Balances of Governmental Funds..................................................................................
146
Assessed Values and Actual Values of Taxable Property...........................................................................
148
Assessed Values and Actual Values of Taxable Property — Redevelopment Agency .........................................
150
Assessed Values —Taxable Property....................................................................................................
152
Assessed Values — Use Category Summary ...........................................................................................
154
Direct and Overlapping Property Tax Rates............................................................................................
155
Principal Property Taxpayers..............................................................................................................
157
Property Tax Levies, Tax Collections and Delinquencies...........................................................................
159
Ratio of Outstanding Debt by Type.......................................................................................................
160
Ratio of General Bonded Debt Outstanding............................................................................................
162
Direct and Overlapping Bonded Debt....................................................................................................
163
LegalDebt Margin Information.............................................................................................................
164
Pledged Revenue Coverage...............................................................................................................
166
Demographic and Economic Statistics...................................................................................................
167
PrincipalEmployers..........................................................................................................................168
Full -Time and Part -Time City Employees by Function................................................................................
169
Operating Indicators by Function..........................................................................................................
170
Capital Asset Statistics by Function.......................................................................................................
171
carr of NTA CLARITA
23920 Valencia Boulevmd • Suite 120 • Santa Clarita, Cab forma 91355-2196
Phone: (661) 286AI84 • FAX: (661) 2864186
a .santaclarita.mn
January 29, 2014
Honorable Mayor, Mayor Pro Tem and City Councilmembers
The Comprehensive Annual Financial Report (CAFR) of the City of Santa Clarita (the City) for the fiscal year ended
June 30, 2013 is hereby submitted, in accordance with Chapter 2.12 of the City of Santa Clarita Municipal Code. This
report provides the City Council (the Council) and the public with an understanding of the financial condition of the City
of Santa Clarita as of June 30, 2013.
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 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. McGladrey LLP, an
independent firm of certified public accountants, has issued an unmodified ("clean") opinion on the financial statements
of the City of Santa Clarita for the year ended June 30, 2013. The independent auditor's report is located at the front of
the financial section of this report. The CAFR has been prepared in conformity with Generally Accepted Accounting
Principles (GAAP) and with the financial reporting requirements prescribed by the Governmental Accounting
Standards Board (GASB). These reporting requirements specify that management provide a narrative introduction,
overview and analysis to accompany the financial statements in the form of a Management's Discussion and Analysis
(MD&A). The MD&A, which immediately follows the independent auditor's report, complements this letter of transmittal
and should be read in conjunction with it.
Also, as a recipient of federal and state financial assistance, the City is required to have a "Single Audit" performed by
our independent audit firm. The Single Audit was designed to meet the special needs of the federal grantor agencies.
The standards governing the Single Audit engagements require that the independent auditor report 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 63.12 square miles. With a population of
204,951, the City is the 19t" 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 7,900 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 Women's Golf Championships, the opening rounds of the NAIA Baseball National Championships, 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 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), which is a blended component unit of the City of Santa Clarita. The financial activities of
this entity are included in this report, as their activities are under the control of the City.
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.
LOCALECONOMY
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.
We continue to see positive changes in the economy, such as a declining unemployment rate, an increase in sales tax
revenues, and a recovering housing market. The City has a 100 percent track record for adopting a balanced, on-time
budget, with ample reserves and contingency funds. Fiscal year 2012-2013 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 6.3 percent, compared to
10.1 percent for Los Angeles County as of August 2013. 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 Free
People, Charming Charlie and Art of Shaving. Construction of Toppers Restaurant is in progress on Valencia
Boulevard at Magic Mountain Parkway, and a new BevMo! opened at the Plaza at Golden Valley. In addition, Santa
Clarita welcomed a new auto dealer, Mini Cooper, for eager shoppers.
Retail vacancy rates continue to hold at a low 6.2 percent, while industrial vacancies remain around 4.4 percent. The
largest area of potential growth in the City is in the area of office space, with Santa Clarita at a 13.2 percent vacancy
rate in second quarter 2013 compared to a 15 percent vacancy rate in third quarter 2012.
The City's entertainment industry was strong in fiscal year 2012-2013 with an economic impact of $25.7 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," ABC Family's "Switched at
Birth" and "Chasing Life," FX's "Justified," ABC's "Wipeout" and TNT's "Franklin and Bash," are based in Santa Clarita
and regularly film on location within the City.
Tourism continues to be one of the City's largest economic generators, contributing more than $2.5 million to the
General Fund from Transient Occupancy Tax (TOT) in fiscal year 2012-2013. The third year of the Tourism Marketing
District (TMD), a collaborative assessment program and partnership between the City and five local hotels, grew upon
previous success and collected over $486,000 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, and the Mustang Challenge cross-
country event.
The proposal to eliminate the California Enterprise Zone program was passed by the State Senate in June 2013, and
as a result, the program's benefits will no longer be available in the Santa Clarita Valley. Since its inception in 1984,
the Enterprise Zone program has provided hiring credits and tax breaks in economically distressed areas of the state
to encourage business investment and promote the creation of new jobs. Santa Clarita was awarded an Enterprise
Zone in 2007, received an expanded zone designation in 2011, saved 490 businesses over $313 million in taxes, and
hired 1,833 people into new jobs at local businesses.
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 well-being. 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. 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.
The continuing recovery in our economy has directly affected the City's revenue growth, producing increases in
property tax, sales tax, real property transfer tax and TOT. Property Tax in lieu of Vehicle License Fee (PT -VLF)
remained relatively flat for fiscal year 2012-2013.
Major Tax Revenues
Millions
$35
■Sales Taxes
$30
7TJJ
NProperly Taxes
$25
OPT -VLF
$20
1
OTransient Occupancy
$15
Taxes
EReal Property Transfer
$10
Tax
$5
$0
2008-09
2009-10 2010-11 2011-12 2012-13
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 PT -VLF. However,
because the City of Santa Clarita has
practiced
smart growth in
successful financial times, it is well prepared for times
when revenue projections
do not include
growth.
The City maintains a General Fund balance sufficient to provide for various identified contingencies, as well as an
established operating reserve. In addition, the General Fund assigns amounts annually for the City's facilities
replacement program, which provides for major maintenance and replacement of infrastructure and capital
improvements. The City's Capital Improvement Program (CIP) is a component of the annual budget process that
addresses the City's short- and long-term capital needs. Just as important, the CIP emphasizes a plan of action that
effectively maintains the existing infrastructure to a sound physical standard, as well as providing new facilities to
support current growth and complement new development.
MILESTONES IN FISCAL YEAR 2012-2013
The City of Santa Clarita's Film Office set new film records in fiscal year 2012-2013 with 1,069 film days,
representing an estimated $25.7 million in local economic impact from location filming alone. The Santa Clarita
Film Office recorded 1,069 film days and 368 permits, which represents an 18 percent increase in film days
when compared to the City's previous record year in 2011-2012. The economic impact of local filming
increased by 22 percent from 2011-2012 when the estimated economic impact was $21,141,500.
Since the City created the Open Space District in 2007, thousands of acres of land have been brought into
public ownership. Santa Clarita is one of only a few municipalities to have an Open Space District, which was
created so that we could provide a buffer zone around our City. Over the last year, the City has added more
acreage to the District. As part of the Eastern Greenbelt, Santa Clarita partnered with the Santa Monica
Mountains Conservancy to purchase the 1,027 -acre Ague Dulce Canyon Parklands property that was
originally planned to be a housing development. The City added another 56 acres adjacent to that property.
The purchase of 302 acres formerly planned as a massive development project called Las Lomas is
underway. This land serves as a buffer between Santa Clarita and the San Fernando Valley.
The City of Santa Clarita continues to maintain historically low crime rates. Santa Clarita's three -pronged
approach—education, enforcement and collaboration—has proved to be very successful. The Sheriffs
Department's Zone program, in which deputies created specific geographical zones within the community, has
been a key factor in addressing crime trends and areas to watch. Their responsibility is to monitor what is
happening in their specific zone and help direct necessary resources as problems occur. They also share
information in real time.
Santa Clarita continues to address the issue of teen drug use. In an effort to raise awareness about drug
availability and use, the City continued to reach out to parents and families and provide assistance to those in
need. The City launched a new program called Drug Free Youth In Town (DFYIT), in which teens pledge to
stay sober and engage in meaningful, healthy activities. Eight hundred youths signed on in the first year, and
of those tested in random drug tests, 100 percent were drug-free.
Maintaining the City's infrastructure and adding new amenities continues to be a focus for the City. In the last
year, the City has beautified the Lyons Avenue on- and off -ramps within the City; broken ground on the
$4 million McBean Park -and -Ride facility that will add 282 parking spaces and five new bus bays for
commuters; implemented median improvements along Sierra Highway; and allocated millions to the City's
annual street overlay program and the widening of the McBean Parkway bridge over the Santa Clara River.
:• July 1, 2013 marked the completion of the Santa Clarita Public Library's second year of service. The second
year of operation included the grand opening of the new 30,000 square -foot library in Old Town Newhall. The
year saw 888,880 library patron visits to the three branches, the circulation of 1,480,527 books and materials,
and more than 40,000 patrons attending library programming.
iv
The City collaborated with several business owners in Old Town Newhall to debut new facades on businesses
along Main Street as part of the Building Improvement Grant Program, funded by American Recovery and
Reinvestment Act funds.
The City opened its second Community Center in Canyon Country in January 2013, providing health,
recreation, arts and after-school programming six days a week to community members.
The City welcomed more than 25,000 new residents into Santa Clarita, making the City of Santa Clarita the
third largest city in Los Angeles County with more than 204,000 residents.
Santa Clarita remained one of Southern California's best event destinations, hosting the Amgen Tour of
California finish of Stage 3 on May 14 and the start of Stage 4 the next day. The City also worked with
community partners to host the Thursdays at Newhall event series, which includes Art Slam, Senses, and the
weekly Farmers Market in Old Town Newhall. The City's Cowboy Festival in April also enjoyed its largest
attendance to date, in addition to strong media coverage with the Los Angeles market.
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, 2012. This was the 24th 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.
The City also received a Certificate of Excellence Award from the Association of Public Treasurers of the United States
and Canada for Santa Clarita's Investment Policy. The City annually submits its Investment Policy to the Association's
Investment Policy Certification Committee for award consideration and has received the prestigious Certificate of
Excellence Award for the past 18 years.
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,
particularly Finance Manager Carmen Magana; financial analysts Susan Cromsigt, Mary Ann Ruprecht, Jan Downey,
Paul Chung, Brittany Houston and Blanca Gomez; and General Accounting Specialist Aruna Patel. I would like to
express my appreciation to all members of the Division who assisted and contributed to its preparation. I would also
like to thank the Mayor; Mayor Pro Tem; Councilmembers; City Manager Ken Striplin; Assistant City Manager Frank
Oviedo; Director of Public Works Robert Newman; Director of Community Development Tom Cole; 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,
Darren Hernandez
Deputy City Manager
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Clarita
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2012
Executive Director/CEO
vi
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2013
City Council
Bob Kellar MAYOR
Laurene Waste MAYOR PRO TEM
Marsha McLean COUNCILMEMBER
TimBen Boydston COUNCILMEMBER
Frank Ferry COUNCILMEMBER
City Officials
Ken Striplin CITY MANAGER
Frank Oviedo ASSISTANT CITY MANAGER
Darren Hern6ndez DEPUTY CITY MANAGER
Joseph Montes CITY ATTORNEY
Tom Cole DIRECTOR OF COMMUNITY DEVELOPMENT
Richard Gould DIRECTOR OF PARKS, RECREATION & COMMUNITY SERVICES
Robert Newman DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
vii
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IX
McGladrey LLP
McGladrey
Independent Auditor's Report
To the Honorable Mayor and Members of the City Courcil
of the City of Santa Clarita
Santa Clarita, California
Report on the Financial Statements
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, 2013, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor's Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In 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 as of June 30, 2013, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Member of the RSM I ntematlonal network of Independent acmunUng, tax and mmutOng firms
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion
and Analysis, Budgetary Comparison Information and Schedule of Funding Progress 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, which 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City's basic financial statements. The combining non -major fund financial statements and schedules, and other
information such as the Introductory and Statistical sections, are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining non -major fund financial statements and schedules are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the non -major fund financial statements and schedules are fairly stated,
in all material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical sections have not been subjected to the auditing procedures applied in the audit of the
basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2014 on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and 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 in considering the City's internal
control over financial reporting and compliance.
Emphasis of Matter
As discussed in Notes 12 and 22 to the financial statements, the beginning net position of the governmental activities,
Internal Service Funds and RDA Successor Agency Trust Fund; and the fund balance of the General Fund, the Bridge
and Thoroughfare Special Revenue Fund, and non -major governmental funds; have been restated to correct a number
of misstatements as of June 30, 2012. We also audited the adjustments described in Notes 12 and 22 that were
applied to restate the 2012 financial statements. In our opinion, such adjustments are appropriate and have been
properly applied. Our opinion is not modified with respect to this matter.
Irvine, California
January 29, 2014
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2013
This discussion and analysis of the City of Santa Clarita's (the City) financial performance provides an overview of the
financial activities of the City for the fiscal year ended June 30, 2013. 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 $952.9 million. Of
this amount, $69.5 million represents unrestricted net position that may be used to meet the City's ongoing
obligations to citizens and creditors (Table 1).
The City's total net position increased by $3.4 million, net of prior year restatements. Net position of the
business -type activities increased by $3.5 million, or 4.6%, and the net position of the governmental activities
decreased by $114,400, net of prior year restatements (Table 2).
The capital assets of the City's governmental activities decreased by $7.6 million, or 1 % over last fiscal year.
The decrease was in part due to a restatement of infrastructure, removing $5.6 million in street trees that will
not be capitalized per the City's capital asset policy. A restatement of land previously transferred from the
former redevelopment agency to the City in the amount of $6.2 million removed it from the City's capital assets
and restated it as property held for resale.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $158.5 million. This represents an increase of $66.2 million as compared to the prior year. The
total increase includes restatements to fund balance of $49.5 million. See Note 12 to the financial statements
for additional information on the restatements.
Within governmental funds, the General Fund reported a fund balance of $94.3 million, an increase of
$24.4 million over the prior year. The increase includes $12.2 million in restatements and revisions to fund
balance.
USING THIS ANNUAL REPORT
The financial statements presented herein include all of the activities of the City of Santa Clarita and its component unit
using the integrated approach as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34.
The three components of the basic financial statements are as follows:
1) Government -Wide Financial Statements
The Government -Wide Financial Statements present the financial picture of the City from the economic
resources measurement focus using the accrual basis of accounting in a manner similar to a private -sector
business. These statements include all assets of the City (including infrastructure) as well as all liabilities
(including long-term debt).
2) Fund Financial Statements
The Fund Financial Statements include statements for each of the three categories of activities: governmental,
proprietary and fiduciary. For governmental activities, these fund statements tell how these services were
financed in the short term, as well as what remains for future spending. Fund financial statements also report
the City's operations in more detail than the government -wide statements by providing information about the
City's most significant funds and other funds.
See independent auditor's report.
USING THIS ANNUAL REPORT (CONTINUED)
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 Position 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 Position 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 Position reports all of the City's assets and liabilities, with the difference between the two
reported as net position. Net position is one way to measure the City's financial health or financial position. Over time,
increases or decreases in the City's net position is an indication of whether its f=inancial 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 position changed during the fiscal year.
All activities resulting in changes in net position are reported when earned or incurred, regardless of the receipt or
disbursement of the related transaction's cash flows. Some of the revenues and expenses reported in this statement
will result in future fiscal period cash flows, such as the receipt of uncollected taxes and the payment of interest
expense or compensated absences.
In the Statement of Net Position and the Statement of Activities, we separate the City's 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, recreation and community
services, and community 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 one legally separate entity.
The financial activity and data of the Santa Clarita Public Financing Authority has been accounted for within the funds
of the City, and therefore, separate component unit financial information is not presented within the financial
statements.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS — FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts used to account for and accumulate financial information related to a specific
activity or objective. Some funds are required to be established by State law and bond covenants; however,
management established many other funds to help it control and manage money for particular purposes or to show
that it is meeting legal responsibilities for using certain taxes, grants and other resources. The fund financial
statements provide detailed information about the most significant funds and other funds — not the City as a whole. The
City's three types of funds are governmental, proprietary and fiduciary.
See independent auditor's report. d
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS — FUND FINANCIAL STATEMENTS (CONTINUED)
Governmental Funds — Most of the City's basic services are reported in governmental funds. Governmental fund
financial statements focus on how money flows in and out of those funds and the balances left at year-end that are
available for spending. These funds are reported using an accounting method called "modified accrual" accounting,
which measures cash and all other financial assets that can readily be converted to cash. The governmental fund
statements provide a detailed short-term view of the City's general government operations and the basic services it
provides. Governmental fund information helps determine whether there are more or fewer financial resources that can
be spent in the near future to finance the City's programs. Because the focus of the governmental funds is narrower
than that of the government -wide financial statements, it is useful to compare the information presented for the
governmental funds with similar information presented for the governmental activities in the government -wide financial
statements. Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided
to explain the differences created by this integrated approach.
The City reports governmental fund financial information within 32 governmental funds. The General Fund, Bridge and
Thoroughfare 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 28 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 statements, 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 three internal service funds to account for costs related to self-insurance, computer
replacement and vehicle replacement. The Public Facility Replacement Fund previously reported as an internal service
has been combined with the General Fund for financial reporting purposes. See Note 12 for additional information.
Proprietary funds are reported in the same way all activities are reported in the Statement of Net Position and the
Statement of Activities. The proprietary fund financial statements provide separate information for the Transit
Enterprise Fund, which is considered to be a major fund of the City. All of the internal service funds are combined into
a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements in the supplementary information section of this report.
THE CITY AS TRUSTEE — FIDUCIARY FUND STATEMENTS
Reporting the City's Fiduciary Responsibilities
The City
is the trustee,
or fiduciary, for certain
funds held for the benefit
of other parties outside of the City. The City's
fiduciary
activities are
reported in separate
Statements of Fiduciary
Net Position and Statement of Changes in
Fiduciary
Net Position.
These activities were
excluded from the City's
other financial statements because the City
cannot use these assets to finance its operations.
The City is responsible for ensuring that the assets reported in these
funds are
used for their
intended purposes.
NOTES TO THE BASIC FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements.
See independent auditor's report.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the comparison of budget and actual results for the major governmental funds
and pension and other post -employment benefits schedule of funding progress. This section is located after the Notes
to Financial Statements.
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 in the supplementary information section.
THE CITY AS A WHOLE
The analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the City's
governmental and business -type activities.
The City's net position may be analyzed and used as an indicator of the City's overall financial condition. The City's
combined net position increased by $3.4 million, increasing from $949.5 million to $952.9 million inclusive of prior year
restatements.
ASSETS:
Current and Other Assets
Noncurrent Assets
TOTAL ASSETS
LIABILITIES:
Noncurrent Liabilities
Other Liabilities
TOTAL LIABILITIES
NET POSITION:
Net investment in
capital assets
Restricted
Unrestricted
TOTAL NET POSITION
TABLE 1
CITY OF SANTA CLARITA'S NET POSITION
Governmental Activities Business -type Activities Total
2013 2012 2013 2012 2013 2012
$ 182,284,566
$ 196,388,056
$ 7,628,301
$ 6,109,016
$ 189,912,867
$ 202,497,072
785,130,611
777,121,589
76,561,407
73,778,640
861,692,018
850,900,229
967,415,177
973,509,645
84,189,708
79,887,656
1,051,604,885
1,053,397,301
72,211,285
41,433,845
-
-
72,211,285
41,433,845
22,704,246
59,461,754
3,792,985
3,009,597
26,497,231
62,471,351
94,915,531
100,895,599
3,792,985
3,009,597
98,708,516
103,905,196
738,271,282
743,281,558
76,561,407
73,778,640
814,832,689
817,060,198
68,521,940
50,191,277
-
-
68,521,940
50,191,277
65,706,424
79,141,211
3,835,316
3,099,419
69,541,740
82,240,630
$ 872,499,646
$ 872,614,046
$ 80,396,723
$ 76,878,059
$ 952,896,369
$ 949,492,105
The City's net position is made up of three components: Net Investment in Capital Assets, Restricted Net Position and
Unrestricted Net Position.
As of June 30, 2013, assets exceeded liabilities by $952.9 million. The largest component of the City's net position,
85.5%, is represented by its $814.8 million investment in capital assets (e.g., infrastructure, land, buildings and
improvements, equipment, and construction in progress) less any related outstanding debt used to acquire the assets.
These capital assets are used to provide services to the citizens, and therefore are not available to finance future
operations. In addition, resources necessary to repay the related debt must be provided by sources other than the
capital assets, as the assets themselves cannot be used to satisfy these liabilities.
See independent auditor's report.
THE CITY ASA WHOLE (CONTINUED)
An additional
portion of the City's net
position, 7.2%, represents resources subject to external
restrictions on how they
may be used.
The remaining 7.3% of
unrestricted net position, $69.5 million, may be used to
meet the City's ongoing
obligations to
citizens and creditors.
2012
$ 42,533,447
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 position. Net position for governmental activities increased by $24.4
million over the prior year. The increase was due in part to a one-time payment of $17.6 million made to the OPEB
Irrevocable Trust in the prior year and a revenue of $4.3 million from the County for annexations to the City's
landscape median district. Restatements totaling $24.5 million reduced net position. The restatements included the
removal of $5.6 million in street trees and $6.2 million in land restated as land held for resale from the City's capital
assets. An allowance for the decline in value of the land of $4 million was part of the restatements, as was an
allowance of $13.3 million for doubtful accounts for loans made by the City to the former redevelopment agency. The
net result was a decrease of $114,400 to net position. The unrestricted net portion of the business -type activities
increased by $7353897.
Governmental Activities
Revenues from governmental activities increased by $2.83 million or 1.8% due in part to an increase in sales tax
revenues of $3.2 million. The cost of all governmental activities this year was $130.7 million, a decrease of 4.7% over
the past year. As shown in the Statement of Activities, the governmental activities expenditures were ultimately
financed in part by the taxpayers, as $42.5 million in revenues were generated by service revenues received from the
performance of these activities; another $9.1 million was received from government agencies and other organizations
that subsidized certain programs with operating grants and contributions; and another $33.6 million in revenues was
generated from capital grants and contributions. Overall, the City's governmental program and general revenues
amounted to $160.3 million, which funded the expenditures and resulted in a $24.4 million increase in net position
excluding restatements.
TABLE 2
CITY OF SANTA CLARITA'S CHANGES IN NET POSITION
Program Revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues:
Taxes:
Property taxes
Othertaxes
Grants and contributions not restricted
to specific programs
Other
Total Revenues
General government
Public safety
Public works
Parks, recreation and community services
Community development
Unallocated infrastructure depreciation
Interest and fiscal charges
Transit
Total Expenses
Increase/Decrease in Net Postion Before Transfers
Transfers
Increase/Decrease In Net Position After Transfers
Gain From Dissolution of Fortner Redevelopment Agency of the
City of Santa Claims
Changes in Net Position
Net Position — Beginning of Year
Restatements
Net Position — Beginning of Year, as restated!
Net Position — End of Year
See independent auditor's report.
Governmental Activities
Business -type
Activities
Total
32,341,369
2013
2012
2013
2012
2013
2012
$ 42,533,447
$ 32,316,820
$ 6,863,086 $
6,616,]]8
$ 49,396,533 $
38,933,598
9,061,950
16,032,433
8,579,209
7,385,264
17,641,159
23,41],69]
33,585,797
28,616,368
8,513,238
5,041,992
42,099,035
33,658,380
32,341,369
34,818,426
-
-
32,341,369
34,818,426
42,553,327
38,719,404
-
-
42,553,327
38,719,404
-
87,883
-
-
-
87,883
227,806
6,882,091
29,660
147
257,466
6,882,238
160,303,696
15],4]3,445
23,985,193
19,044,181
184,288,889
1]6,51],626
75,920,314
924,955,086
35,921,943
33,664,470
-
-
35,921,943
33,664,470
19,940,098
27,391,075
-
-
19,940,098
2],391,0]5
28,651,261
30,623,718
-
-
28,651,261
30,623,718
21,809,820
19,282,538
-
-
21,809,820
19,282,538
7,214,293
5,896,640
-
-
7,214,293
5,896,640
15,163,864
16,844,238
-
-
15,163,864
16,844,238
1,992,574
3,391,058
-
-
1,992,574
3,391,058
25,653,753
24,930,635
25,653,753
24,930,635
130,693,853
13],093,]37
25,653,753
24,930,635
156,347,606
162,024,372
29,609,843
20,3]9,]08
(1,668,560)
(5,886,454)
27,941,283
14,493,254
(5,187,224)
(6,844,199)
5,187,224
6,844,199
24,422,619
13,535,509
3,518,664
95],]45
27,941,283
14,493,254
40,413,284
40,413,284
24,422,619
53,948,793
3,518,664
95],]45
27,941,283
54,906,538
872,614,046
818,665,253
76,878,059
75,920,314
949,492,105
894,585,567
(24,537,019)
(24,537,019)
848,077,027
818,665,253
]6,8]8,059
75,920,314
924,955,086
894,585,56]
$ 872,499,646
$ 872,614,046
$ 80,396,723
$ 76,878,059
$ 952,896,369
$ 949,492,105
THE CITY AS A WHOLE (CONTINUED)
Business -Type Activities
Business -type activities increased the City's net position by $3.5 million for the current year. Business -type activities
revenues increased by $4.9 million during the year for a total of $24 million in revenues, not including the $5.2 million
of transfers in from other governmental activities. The increased revenue was largely due to an increase in capital
grants and contributions. Federal Transit Administration grant funds for the purchase of buses totaled $4.7 million.
Related transit activity expenses increased by $7233118.
THE CITY'S FUNDS
The governmental funds reported a combined fund balance at the end of the current fiscal year of $158.5 million, an
increase of $66.2 million over the prior year, including restatements of $49.5 million. Approximately $69 million is
restricted and already committed for specific restricted purposes.
The total governmental fund balance includes the general fund balance of $94.3 million, which increased by
$24.4 million over the prior year, including restatements of $12.2 million. The General Fund is the chief operating fund
of the City of Santa Clarita. The fund balance increase of $12.2 million is due in part to a decrease in general
governmental expenditures of $19 million. Payments to the OPEB Irrevocable Trust to pre -fund post -employment
benefits decreased from $20.3 million in the prior year to $2.7 million. The $12.2 million increase in fund balance
includes a restatement for the reversal of transfers of $5.2 million from the general fund to the Self -Insurance Internal
Service Fund and the collapse of the Public Facilities Replacement Internal Service Fund with the General Fund in the
amount of $14.1 million. The restatement also included an allowance for doubtful accounts of $7 million for the loans
made by the City from the general fund to the former redevelopment agency.
The unassigned general fund balance of $35.3 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 12 to the financial statements.
Other major fund balance changes are noted below:
• The Bridge and Thoroughfare Fund has realized an increase of $35 million from the prior year due to the
restatement of developer deposits to the City's general long-term debt.
• The Public Library Fund has realized a decrease of $4.4 million in its fund balance from the prior year, the
majority of which was for construction costs of the Old Town Newhall Library.
• The Landscape Maintenance District's fund balance increased $5.9 million from the prior year due in part to
revenues totaling $4.3 million from the County for annexations to the district.
In addition to the major funds, the fund balances for the other governmental funds experienced an aggregate increase
of $3.9 million. A restatement removing land from the City's capital assets to the housing successor agency and the
developer fees funds as land held for resale increased fund balances for other governmental funds by $1.2 million.
Recognition of revenues previously recorded as unearned revenues totaled $1.1 million.
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 position for the Transit Enterprise Fund increased over the prior year by $3.5 million or
4.6%. The unrestricted portion of the business -type activities net position increased by $735,897 from the prior year.
The Internal Service Funds net position decreased by $27.8 million or 77.4% due to the reversal of transfers from the
General Fund of $5.2 million to the Self -Insurance Fund and the collapse of the Public Facilities Replacement Fund
with the General Fund of $16.8 million, which includes $2.7 million in land transferred to the City's general capital
assets. An additional $5 million in land was removed from the Self -Insurance Fund and included in the City's general
capital assets. The ending fund balance for Internal Service Funds is $8.1 million, of which $7.7 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2012-2013 original (adopted) general fund budgeted expenditures and transfers of
$82.2 million to the final budgeted expenditures of $87.9 million results in a net increase of $5.7 million.
See independent auditor's report. R
THE CITY'S FUNDS (CONTINUED)
Included in this net increase is $299,268 in committed purchase orders and contracts from the prior June 30 balance,
as well as $487,262 of prior fiscal year operating and capital improvement projects approved for carryover into fiscal
year 2012-2013. The resulting beginning budget balance was equal to $83 million.
Original
Cont.
Encumbrances Beg.
Supplemental
Final
Budget +
Appropriations +
= Balance +
Changes=
Budget
$8222322313 +
$4877262+
$2993268 = $833018,843 +
$429082810 =
$8739273653
Comparing the beginning budget of $83 million with the final budget of $87.9 million indicates the General Fund had
supplemental budgetary appropriations of $4.9 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 $927,980. Included in the
net increase are a $358,000 increase in development revenues, $288,500 in transient occupancy taxes and a
$152,000 increase in code fines revenue.
At year-end, the
City's actual revenues were $2.93
million more than
the final budgetary estimates. Actual
expenditures were
less than the final budgetary estimates
by $2.91 million.
20,258,460
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City had $846.1 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).
TABLE 3
CITY OF SANTA CLARITA'S CAPITAL ASSETS (net of depreciation)
Land
Construction in progress
Infrastructure, net
Depreciable site improvements, net
Depreciable buildings and
improvements, net
Depreciable equipment, net
TOTALS
Governmental Activities
2013 2012
$116,387,179
$122,169,150
5,474,307
13,594,441
571,948,626
584,748,522
19,547,163
20,258,460
53,713,714
34,267,401
Business Type Activities
2013 2012
$15,087,880 $15,087,880
2,145,290 2,875,593
6,297,027 6,492,671
33,091,453 33,974,800
Total
2013 2012
$131,475,059
$137,257,030
7,619,597
16,470,034
571,948,626
584,748,522
25,844,190
26,751,131
86,805,167
68,242,201
2,498,135
2,083,615
19,939,757
15,347,696
22,437,892
17,431,311
$769,569,124
$777,121,589
that opened in
$76,561,407
$73,778,640
$846,130,531
$850,900,229
Major capital asset events during the year included:
A $19.4 million
increase
in buildings in
governmental
activities due to the transfer from construction in
progress for the
Old Town
Newhall Library
that opened in
September 2012.
• Infrastructure additions totaling $14.6 million that included $13.4 million contributed by developers.
A restatement of infrastructure to remove $5.6 million for street trees that will not be capitalized. The prior year
transfer of $3.3 million to the Successor Agency to the former redevelopment agency was restated from
construction in progress to infrastructure. The restatement also included a transfer of $580,413 to the
Successor Agency.
See independent auditor's report.
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Land in the amount of $6.2 million previously transferred from the former redevelopment agency to the City
was removed from the City's capital assets and restated as land held for resale by the RDA Successor
Agency, the Housing Successor Agency and the Developer Fees Fund. The restatement added an allowance
for the decline in value of $4 million for the properties.
• Equipment additions in the Transit fund of $4.7 million for buses.
Additional information on the City of Santa Clarita's capital assets can be located in Note 7 to the financial statements.
Debt Administration
At year-end, the City's total debt amounted to $43.2 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
Certificates of Participation
Lease Revenue Bonds
Contract and Leases
Loans
Compensated Absences
Claims Payable
TOTAL
TABLE 4
CITY OF SANTA CLARITA'S OUTSTANDING DEBT
Governmental Activities Business -type Activities Total
2013 2012 2013 2012 2013 2012
$10,429,898 $11,336,937
15,430,000 15,490,000
12,316,280
12,614, 938
201,879
242,417
810,000
1,040,000
2,864,131
2,685,537
1,114,117
50,000
2,926,163
$43,166,305
$43,459,829
50,000
$43,228,337
62,032 52,364
$62,032 $52,364
$10,429,898
$11,336,937
15,430,000
15,490, 000
12, 316, 280
12, 614, 938
201,879
242,417
810,000
1,040,000
2,926,163
2,737,901
1,114,117
50,000
$43,228,337
$43,512,193
The City's governmental activities had $43.2 million in debt at year-end. Governmental activities long-term debt
decreased overall by $293,523 during the year. Principal payments totaled $1.8 million. The increase in claims payable
to $1.1 million is due to the inclusion of workers' compensation payable.
No new debt related to business -type activities was issued or refinanced during the current fiscal year.
During the fiscal year ended June 30, 2013, 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
adjusted assessed valuation. The debt limitation for the City as of June 30, 2013 was $926,176,818. The calculation
of the debt limitation is included in the statistical section.
Additional information on the City of Santa Clarita's debt can be located in Note 8 to the financial statements.
See independent auditor's report. 10
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
Our long history of conservative and strategic budget practices has allowed the City to maintain a balanced budget
during every year of the Great Recession without layoffs or drastic cuts in services. We continue to see positive
changes in the economy, such as a declining unemployment rate, an increase in sales tax revenue, and a recovering
housing market. Although we are slowly starting to close the gap in revenues, we have yet to be at pre -recession
levels. It will take more time to recover our losses as long as the economy continues its slow yet steady upward trend.
• General Fund sales tax revenue continues to be the largest revenue source to operate general governmental
functions, accounting for 33.2% or $32.5 million as projected in the 2013-2014 budget. This is 2.3% higher
than 2012-2013 receipts.
Property tax revenues account for 27.8% of the General Fund budget or $27.2 million in 2013-2014. 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 2013-2014 is $97.7 million, 1.7% higher than the actual revenues of
the prior year. The City's General Fund operating and capital expenditures for the coming year are budgeted at
$94.0 million, a 12.1% increase from prior year actuals. Operational expenditures increased by 9.4% or $7.8 million,
and capital expenditures increased by $2.3 million. The City's 2013-2014 operating budget for all funds decreased by
0.98% or $1.8 million.
The City remains dedicated to service excellence, teamwork and creativity. City staff continues to do more with less,
find creative ways to maintain services revered by our community, and provide award-winning programs. The 2013-
2014 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 2013-2014 budget can be obtained by contacting the City
Finance Division or visiting the web at www.santa-clarita.com/citvhall/departments/cmo/citybudget.
See independent auditor's report. 11
12
City of Santa Clarita
Statement of Net Position
June 30. 2013
Assets
Current assets
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Prepaid costs
Due from other governments
Internal balances
Total current assets
Noncurrent assets
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Land held for resale, net
Notes to RDA Successor Agency
Allowance for doubtful accounts
Other post employment benefits asset
Capital assets:
Nondepreciable assets
Depreciable assets, net
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable and accrued liabilities
Interest payable
Deposits payable
Unearned revenues
Compensated absences
Claims and judgments
Bonds, loans and capital leases
Total current liabilities
Noncurrent liabilities
Compensated absences
Claims and judgments
Bonds, loans and capital leases
Developer credits
Total noncurrent liabilities
Total liabilities
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
See Notes to Financial Statements. 13
Governmental Business -Type
Activities Activities Total
$ 16321317324 $ $ 163,1313324
7627672
670003745
7623672
4857484
13188,969
4853484
7,8917930
1373603087
778913930
22368,836
632237930
273683836
5797725
2403261
8193986
5,3267127
971267508
14,4523635
1,738,468
(177383468)
22,7043246
-
182,284,566
77628,301
18979123867
630007745
670003745
231477843
271473843
13188,969
171883969
1323607087
1373603087
(1333607087)
(13,3603087)
632237930
672233930
12128617486
1772337170
13970943656
64727077638
59,3287237
70770353875
7852130,611
765617407
86176923018
96734157177
8421897708
1,051,604,885
142403,000
377303953
18,1333953
496,960
37,3513116
4963960
323197281
3239253650
333193281
6047335
9429153531
6043335
1037894
623032
137553926
3493835
3493835
1,836, 941
138363941
22,7043246
377923985
26,4973231
1,170,237
131702237
764,282
7643282
37,3513116
37, 351,116
32,9253650
3239253650
72,2113285
7232113285
9429153531
337923985 9837083516
73822713282 7675613407 81438323689
68,521, 940 68, 521,940
65,7063424 378353316 6935412740
$ 872,499,646 $ 80,396,723 $ 952,896,369
City of Santa Clarita
Statement of Activities
For the Year Ended June 30, 2013
Functions/Programs
Governmental Activities
General government
Public safety
Parks, recreation and community service
Public works
Community development
Unallocated infrastructure depreciation
Interest and fiscal charges
Total governmental activities
Business -Type Activities
Transit Enterprise
Total business -type activities
Total
$ 3579217943
19,940,098
21,809,820
28,651,261
7,214,293
15,163,864
Program Revenues
Operating Capital
Charges for Contributions Contributions
Services and Grants and Grants
$ 2433233027
2,284,334
433713886
9,943,014
1,611,184
$ 231417237 $ 3313731
3283378
5733761
162294
2573908
53232,913
31,9513537
133432128
4703860
1,992,574 -
130,693,853 4235332447 930617950 3375853797
General Revenues
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Motor vehicle in lieu - unrestricted
Investment income
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year, as restated
Net position, end of year
See Notes to Financial Statements. 14
Net (Expense) Revenue and
Changes in Net Position
Governmental Business -Type
Activities Activities Total
$ (931253948) $
$ (931252948)
(1637533625)
(163753,625)
(1731633730)
(173163,730)
1834763203
1834762203
(3, 789,121)
(337892121)
(1531633864)
(153163,864)
(4535123659) (1,698,220)
(1, 992,574)
7062180
(473210,879)
(1,992,574)
912062
(823870)
(4535123659)
(532210)
3103676
(453512,659)
32, 341,369
(136982220)
3233412369
3230573358
(136982220)
3230572358
-
(136982220)
7,141,953
235563774
(136982220)
23556,774
(4535123659) (1,698,220)
7062180
(473210,879)
32, 341,369
3233412369
3230573358
3230572358
731413953
7,141,953
235563774
23556,774
7063180
7062180
913062
912062
(823870)
2900
(532210)
3103676
-
310,676
(531873224)
53187,224
-
69,935,278
53216,884
753152,162
2434223619 335182664 2739412283
848,0772027 7628787059 924,955,086
$ 872,499,646 $ 80,396,723 $ 952,896,369
See Notes to Financial Statements. 15
City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2013
Liabilities, deferred inflows of resources
Special Revenue Funds
and fund balances
Bridge and
General
Thoroughfare
Public Library
Assets
Accounts payable and accrued liabilities
$ 679323748 $
2203248 $
Cash and investments
$ 813956,079
$ 1430273259
$ 170363224
Receivables:
Unearned revenues
6043335
Accounts, net
573,024
Interest
257,825
393128
21892
Taxes
731552637
1038213267
897864
Loans
Deferred inflows of resources
Notes to RDA Successor Agency
738842071
Intergovernmental revenues
Allowance for doubtful accounts
(73884,071)
Total deferred inflows of resources
Prepaid costs
843535
747088
Due from other governments
7683881
Due from other funds
334093279
Advances to other funds
1138253524
Land held for resale, net
Restricted assets:
Cash and investments
123077459
Cash and investments with fiscal agents
8253654
Total assets
$ 10638563438
$ 1470663387
$ 2,510,527
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
$ 679323748 $
2203248 $
12324,233
Deposits payable
332843184
Unearned revenues
6043335
Due to other funds
Advances from other funds
175863105
1073567245
Total liabilities
1038213267
178063353
1176807478
Deferred inflows of resources
Intergovernmental revenues
176973870
Total deferred inflows of resources
136973870
Fund balances (deficit)
Nonspendable 11,910,059 -
Restricted 125260,034
Committed -
Assigned 4731062536 -
Unassigned 353320,706 - (971697951)
Total fund balances (deficit) 943337,301 1272602034 (931693951)
Total liabilities, deferred inflow
of resources and fund balances $ 1063856,438 $ 1430663387 $ 275103527
See Notes to Financial Statements. 16
City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2013
Assets
Cash and investments
Receivables:
Accounts, net
Interest
Taxes
Loans
Notes to RDA Successor Agency
Allowance for doubtful accounts
Prepaid costs
Due from other governments
Due from other funds
Advances to other funds
Land held for resale, net
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total assets
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
See Notes to Financial Statements. 17
Special Revenue
Funds
Landscape Non -Major Total
Maintenance Governmental Governmental
District #1 Funds Funds
$ 2731202026 $ 3030813809 $ 15472213397
582408
1313240
7623672
76,056
703376
4463277
3092119
3373310
778913930
(134953646)
233683836
273683836
15834833508
534763016
1373603087
-
(534763016)
(13,3603087)
4212102
5793725
435573246
5,3263127
80
3,4093359
1163826
11,942,350
131883969
171883969
436933286 6,0003745
- 133223189 271473843
$ 273984,711 $ 4438683167 $ 196,2863230
$ 230452588 $ 337963756 $ 14,3193573
353097 373193281
- 604,335
136703891 136703891
- 1179423350
230452588 535023744 3178563430
432483422 5,9463292
432483422 539462292
4212102 2493510
1235803671
253518,021 313179,944
6839573999
7163826
7163826
434663367
5135723903
(134953646)
2436553109
253939,123 3531173001
15834833508
$ 273984,711 $ 443868,167 $ 19632863230
IF,
City of Santa Clarita
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2013
Fund balances of governmental funds
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Capital assets
used in governmental
activities are not financial resources
and therefore
are not
reported in the
governmental funds. Those
capital assets
consist
of:
Nondepreciable assets $ 12138617486
Depreciable assets, net of accumulated depreciation 64733297265
Revenues reported as deferred inflows of governmental revenues in the
governmental funds do not provide current financial resources and are
recognized in the Statement of Activities.
Other post employment benefit assets are not available to pay for
current -period expenditures and therefore are not reported in the
governmental funds.
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the governmental funds. Those long-term
liabilities consist of:
Lease revenue bonds (1233167280)
Certificates of participation bonds (2538597898)
Capital leases (2017879)
Loans payable (8107000)
Compensated absences (22858,182)
Bridges and Thoroughfare developer payables (32,9257650)
Accrued interest payable on long-term liabilities do not require the
use of current financial resources and therefore are not reported in the
governmental funds.
Internal service funds are used by management to charge the costs of
certain activities, such as insurance, and vehicle and computer
replacement, to individual funds. These assets and liabilities of
the internal service funds are included in governmental activities in
the Statement of Net Position.
Net position of governmental activities
See Notes to Financial Statements. 19
$ 1583483508
7693190,751
5,946,292
6,223,930
(74,971,889)
(496,960)
8,124,014
$ 872,499,646
City of Santa Clarita
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Redemption of district credits
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses)
Transfers in
Transfers out
Issuance of district credits
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), beginning of year, as restated
Fund balances (deficit), end of year
See Notes to Financial Statements. 20
Special Revenue Funds
Bridge and
General Thoroughfare Public Lib
$ 6833322942 $ - $ 4,481,938
1331303441 434463760
20,081,992
19,602,317
1074443494 1687199
5,247,226
1083664 13,3457076 434832399
40,538
2232399 1363781
1433682419 -
68,615,134 283105,093 971073478
1375883702 (133207,032) (474063444)
3,011,346
(4,3847877) (82460) (63148)
12,270,335
(1,373,531) 1272613875 (67148)
1232152171 (9453157) (4,412,592)
8231223130 1372053191 (4,7577359)
$ 9433373301 $ 127260,034 $ (921697951)
4,246,957
263,093
7,551,982 -
75,000
131333464 3113227
(6,134)
603,389 -
14,586,834
723009
1503230
8232033836 14,8987061
43701,034
1331303441 434463760
20,081,992
19,602,317
1074443494 1687199
5,247,226
1083664 13,3457076 434832399
40,538
2232399 1363781
1433682419 -
68,615,134 283105,093 971073478
1375883702 (133207,032) (474063444)
3,011,346
(4,3847877) (82460) (63148)
12,270,335
(1,373,531) 1272613875 (67148)
1232152171 (9453157) (4,412,592)
8231223130 1372053191 (4,7577359)
$ 9433373301 $ 127260,034 $ (921697951)
City of Santa Clarita
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Redemption of district credits
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Issuance of district credits
Total other financing sources (uses)
Net change in fund balances
Fund
balances
(deficit),
beginning of year, as restated
Fund
balances
(deficit),
end of year
See Notes to Financial Statements. 21
Special Revenue
Funds
Landscape Non -Major Total
Maintenance Governmental Governmental
District #1 Funds Funds
$ 7317793 $
4253333 $
7339727006
1932252247
879623977
283188,224
1723557714
-432462957
2,005,198
732522424
2771893123
2734527216
7,083,111
4963118
83123,100
883553
1743896
137022006
-
175103777
23114,166
1,241, 554
153828,388
-
1093907
332,146
2030453593
4071103685
16139593209
1136863645 671693442
353433,288
(187,133)
193894,859
2223233
193824,550
1723557714
2739682407
2,005,198
732522424
232433318 37657,076
233837533
1,710,000 137502538
1,678,964 23039,144
1339293963 3226117494 15233693162
631153630 7,4997191 935902047
93000
6,0497149
930693495
(2053898)
(926517336)
(14,2563719)
12,270,335
(196,898)
(33602,187)
7,083,111
539182732
378973004
1636737158
2030203391 31,219, 997 1413810,350
$ 2539393123 $ 3571173001 $ 15834837508
22
City of Santa Clarita
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balances to the Statement of Activities
For the Year Ended June 30, 2013
Net change in fund balances - total governmental funds $ 16,6733158
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the costs of those assets is allocated over the
estimated useful lives as depreciation expense. The following were the
amounts of capital outlay and depreciation expense in the current period:
Capital outlay 24,0551428
Depreciation expense (18,218,899)
Capital contributions to Successor Agency (5323878)
Disposal of capital assets (4193170)
4,884,481
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the governmental funds. (15732,865)
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position.
Also, governmental funds report the effect of premiums and discounts when
debt is first issued, whereas these amounts are deferred and amortized in the
Statement of Activities. There have been no issuances of debt in the current
period, and the following were the amounts of repayment of long-term liabilities:
Changes in compensated absences (444,059)
Lease revenue bonds 295,000
Certificates of participation bonds 1,1857000
Capital leases 40,538
Loans payable 230,000
Amortization of premiums of long-term liabilities 31658
Amortization of discounts of long-term liabilities (41614)
1,305,523
The issuance of Bridge and Thoroughfare district credits provide current
financial resources to governmental funds, but increases long-term liabilities
in the Statement of Net Position. Redemptions of district credits is an
expenditure in the governmental funds, but reduces long-term liabilities in the
Statement of Net Position.
Issuance of district credits (122270,335)
Redemption of district credits 14,368,419
2,098,084
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. These expenses consist of the following:
Changes in interest payable for long-term liabilities 47,527
Changes and amortization of other post employment benefit asset 12053,993
1,101,520
Internal service funds are used by management to charge the costs of certain
activities, such as insurance, and vehicle and computer replacement, to
individual funds. The net revenue (expense) of the internal service funds
is reported with governmental activities. 92,718
Change in net position of governmental activities $ 24,422,619
See Notes to Financial Statements. 23
City of Santa Clarita
Statement of Net Position
Proprietary Funds
June 30, 2013
Noncurrent assets
Capital assets:
Land 1530873880
Construction in progress 231453290
Site improvements, net of accumulated depreciation 632973027
Building and improvements, net of accumulated depreciation 3330913453
Equipment, net of accumulated depreciation 1939393757 3783373
Total noncurrent assets 7635613407 3783373
Total assets 8539283176 913273507
Liabilities
Current liabilities
Accounts payable and accrued liabilities 337303953 833427
Due to other funds 137383468
Compensated absences 62,032 53949
Claims and judgments - 349,835
Total current liabilities 535313453 4393211
Noncurrent liabilities
Claims and judgments 7643282
Total noncurrent liabilities 7643282
Total liabilities 5, 531,453 132033493
Net position
Net investment in capital assets 7635613407 3783373
Unrestricted 33835,316 777453641
Total net position $ 801396,723 $ 85124,014
See Notes to Financial Statements. 24
Business -Type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
Assets
Current assets
Cash and investments
$
$ 839093927
Receivables:
Interest
39,207
Prepaid costs
2403261
-
Due from other governments
931263508
Total current assets
913663769
8,949,134
Noncurrent assets
Capital assets:
Land 1530873880
Construction in progress 231453290
Site improvements, net of accumulated depreciation 632973027
Building and improvements, net of accumulated depreciation 3330913453
Equipment, net of accumulated depreciation 1939393757 3783373
Total noncurrent assets 7635613407 3783373
Total assets 8539283176 913273507
Liabilities
Current liabilities
Accounts payable and accrued liabilities 337303953 833427
Due to other funds 137383468
Compensated absences 62,032 53949
Claims and judgments - 349,835
Total current liabilities 535313453 4393211
Noncurrent liabilities
Claims and judgments 7643282
Total noncurrent liabilities 7643282
Total liabilities 5, 531,453 132033493
Net position
Net investment in capital assets 7635613407 3783373
Unrestricted 33835,316 777453641
Total net position $ 801396,723 $ 85124,014
See Notes to Financial Statements. 24
City of Santa Clarita
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2013
Operating revenues
Charge for services
Other revenues
Total operating revenues
Operating expenses
Administration and personnel services
Transportation services
Services and supplies
Depreciation expense
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Intergovernmental revenue
Investment income
(Loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before transfers and capital contributions
Transfers and capital contributions
Transfers in
Transfers out
Capital contributions
Total transfers and capital contributions
Changes in net position
Net position
Net position, beginning of year, as restated
Net position, end of year
See Notes to Financial Statements. 25
Business -Type Governmental
Activities Activities
Transit Internal
Enterprise Service Funds
$ 45087,995 $ 2,899,052
2,775,091 -
6,863,086 2,899,052
158105225
417,942
175465,062
-
1,951,247
2,243,359
45409,915
222,385
25,636,449
2,883,686
(18,773,363) 15,366
8,579,209 -
29,660 77,352
(17,304) -
8,591,565 77,352
(10,181,798) 92,718
5,435,298
(248,074)
8,513,238
13,700,462
3,518,664 92,718
765878,059 8,031,296
805396,723 8,124,014
City of Santa Clarita
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2013
Cash flows from operating activities
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from other sources
Net cash provided by (used in) operating activities
Cash flows from non -capital financing activities
Cash transfers out
Cash transfers in
Payment received from other funds
Net cash provided by (used in) non -capital financing activities
Cash flows from capital and related financing activities
Intergovernmental revenues
Acquisition and construction of capital assets
Proceeds from disposal of capital assets
Net cash provided by (used in)
capital and related financing activities
Cash flows from investing activities
Interest received
Net cash provided by investing activities
Net (decrease) in cash and cash equivalents
Cash
and
cash
equivalents
at
beginning of year
Cash
and
cash
equivalents
at
end of year
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in claims and judgments
Increase in compensated absences
Total adjustments
Net cash provided by (used in) operating activities
See Notes to Financial Statements. 26
Business -Type Governmental
Activities Activities
Transit Internal
Enterprise Service Funds
$ 410875995 $
25900,685
(19,398,788)
(255705888)
(110835455)
757,680
2,775,091
-
(13,619,157)
15087,477
95668
2,770
(248,074) (650915948)
5,435,298 -
1, 738,468
659255692 (650915948)
1153005031 -
(7,244,461) (1495305)
34,475 -
450905045 (1495305)
315514 970,407
31,514 970,407
(2,571,906) (45183,369)
255715906 1350935296
$ $ 8,9095927
$ (18,7735363) $ 15,366
45409,915
222,385
-
1,633
(51,467)
-
786,090
(128,249)
-
973,572
95668
2,770
5,154,206
1,072,111
$ (135619,157)
$
1,087,477
City of Santa Clarita
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2013
Non-cash investing, capital and financing activities
Disposal of capital assets
Capital assets transferred to governmental activities
Contributions of capital assets
Advances to other funds transferred to General Fund
See Notes to Financial Statements. 27
Business -Type Governmental
Activities Activities
Transit Internal
Enterprise Service Funds
$ (515779) $
- (5,0105612)
100,000
- (925,223)
City of Santa Clarita
Statement of Net Position (Deficit)
Fiduciary Funds
June 30, 2013
Liabilities
Accounts payable $ 216 73131
Interest payable 4303340
Due to external parties 1324072926
Bonds, due within one year 6103000
Bonds and notes, due in more than one year - 4971113831
Total liabilities $ 13,408,142 5031593302
Net Position (Deficit)
Trust deficit3 (6,437,830)
Total net position (36,437,830)
See Notes to Financial Statements. 28
Private -Purpose
Trust Fund
Agency
RDA Successor
Funds
Agency
Assets
Cash and investments
$ 120867940
$ 1,780,704
Receivables:
Accounts
22000
-
Interest
2,276
5,746
Taxes
22275
Due from other governments
7157000
Land held for resale, net
170113031
Restricted assets:
Cash and investments
5,0583519
Cash and investments with fiscal agents
13767,382
131653418
Capital assets:
Land
927387207
5323878
Construction in progress
3933341
Site improvements, net of accumulated depreciation
-
1033692
Building and improvements, net of accumulated depreciation
94,062
Infrastructure, net of accumulated depreciation
3,6703143
Total assets
1324087142
1337213472
Liabilities
Accounts payable $ 216 73131
Interest payable 4303340
Due to external parties 1324072926
Bonds, due within one year 6103000
Bonds and notes, due in more than one year - 4971113831
Total liabilities $ 13,408,142 5031593302
Net Position (Deficit)
Trust deficit3 (6,437,830)
Total net position (36,437,830)
See Notes to Financial Statements. 28
City of Santa Clarita
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended June 30, 2013
Additions
Property taxes
Investment income
Contributions from City
Total additions
Deductions
Administrative expenses
Contractual services
Interest expense
Depreciation expense
Total deductions
Changes in net position
Net Position (Deficit)
Trust deficit, beginning of year, as restated
Trust deficit, end of year
See Notes to Financial Statements. 29
Private -
Purpose Trust
Fund
RDA
Successor
Agency
$ 1,919,286
17,653
532,878
2,469,817
447,247
(51, 729 )
1,773,330
82,292
252515140
2185677
(365656,507)
(36,4375830)
'Cue
NOTES TO FINANCIAL STATEMENTS
11
M
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
These financial statements present the financial results of the City of Santa Clarita, California (the City) and its
component unit as required by accounting principles generally accepted (GAAP) in the United States of America.
Component units are legally separate entities for which the primary government is financially accountable. The City
has one component unit, the Santa Clarita Public Financing Authority. The City Council serves as the Board of the
Financing Authority. Therefore, the entity is reported as a blended component unit with the City's comprehensive
annual financial report (CAFR). The City and the component unit have a June 30 year-end.
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.
Component Unit
The Santa Clarita Public Financing Authority (the Authority) was established in July 1991 as a joint powers of
authority between the City and the former redevelopment 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. Separate financial
statements for the Santa Clarita Public Financing Authority are not prepared.
B. Government—Wide and Fund Financial Statements
The City's government -wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all the activities of the City. The effect of interfund activity has been removed from
these statements, except for the interfund services provided and used. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which
rely to a significant extent on fees and charges for support. Fiduciary activities of the City are not included in these
statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program
revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services
or privileges provided by a given function, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function. Taxes and other items not included among program
revenues are reported as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even
though the latter are excluded from the government -wide financial statements. Major individual governmental
funds are reported as separate columns in the fund financial statements.
C. Basis of Accounting and Measurement Focus
The government -wide 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, and deferred inflows and deferred outflows of resources are included
in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.
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.
33
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Basis of Accounting and Measurement Focus, Continued
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 Governmental Accounting Standards Board (GASB)
Statement No. 34 in regard to interfund activities. All internal balances in the Statement of Net Position 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
The City has conformed to the pronouncements of the 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.
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the "current financial resources" measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period for property and sales tax, and
90 days for all other revenues. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences,
pension and other post employment benefits, are recorded only when payment is due.
Property taxes when levied for, taxpayer -assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle
fees, etc.), net of estimated refunds and uncollectible amounts, intergovernmental revenues when eligibility
requirements are met, charges for services and interest associated with the current fiscal period are all considered
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue
items are considered measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City. It is used to account for all financial resources of the
City that are not required to be accounted for in another fund.
The Bridge and Thoroughfare Special Revenue Fund is used to account restricted district fees received from
developers as set by the State Subdivision Law and the Los Angeles County and City of Santa Clarita which is
used for the construction of street, highway, bridge and other thoroughfare in the Bouquet Canyon, Eastside
Canyon, Via Princessa and Valencia districts. This fund also accounts for the issuance and redemption of district
credits associated with the contribution of infrastructure.
01
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Basis of Accounting and Measurement Focus, Continued
The Public Library Special Revenue Fund is used to account for property tax receipts and disbursements
associated with the operation of the City of Santa Clarita Public Library.
The Landscape Maintenance District #1 Special Revenue Fund is used to account for property tax receipts and
disbursements related to the landscape maintenance 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) and deferred inflows and deferred
outflows of resources are included on the Statement of Net Position. The Statement of Revenues, Expenses and
Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. 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.
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 Position and a Statement of Changes in Net
Position. The 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. Private -purpose trust funds are reported using the
"economic resources" measurement focus and 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 Clarita
Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved
Recognized Payment Obligation Schedule (ROPS).
The City reports the following agency funds:
The Assessment District No. 92-2 Fund is used to account for assets and liabilities 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 and liabilities held by the City as an agent
and related to the debt service activity on no -commitment special assessment debt.
The Community Facilities District No. 2002-1 Fund is used to account for assets and liabilities held by the City as
an agent and related to the debt service activity on no -commitment special assessment debt.
The Santa Clarita Watershed Recreation and Conservancy Authority is used to account for assets and liabilities
held by the City as an agent and related to the park and open space lands for the Santa Clarita Watershed
Recreation and Conservancy Authority.
35
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Basis of Accounting and Measurement Focus, Continued
The Santa Clarita Public Television Authority is used to account for assets and liabilities held by the City as an
agent and related to the operations of the Santa Clarita Public Television Authority.
Fund Types reported by the Citv
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 or committed to expenditures for specified purposes.
The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest and
principal on long-term debt.
The Capital Projects Funds are used to account for financial resources used for the acquisition or construction of
major capital facilities (other than those financed by the proprietary funds).
The Internal Service Funds are used to account for the financing of special activities that provide services within
the City. Such activities include self-insurance, computer replacement and vehicle replacement.
D. 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 that 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. Fair value is the amount at which an
investment could be exchanged in a current transaction between willing parties, other than a forced or liquidation
sale.
The City's cash and investments held by fiscal agents are pledged to the payment or security of certain long-term
debt issuances. The California Government Code provides that these monies, in the absence of specific statutory
provisions governing the issuance of the bonds, may be invested in accordance with the ordinance, resolutions or
indentures specifying the types of investments its trustees or fiscal agents may make.
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
Statement No. 3), certain disclosure requirements, if applicable, are provided for deposit and investment risk in the
following areas:
➢ Interest Rate Risk
➢ Credit Risk
• Overall
• Custodial Credit Risk
• Concentration of Credit Risk
➢ Foreign Currency Risk
M
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Land Held for Resale
Land parcels held for resale are recorded at the lower of cost or estimated net realizable value. The cost of the
land includes all costs incurred which are directly associated with the acquisition of the land, including purchase
price, escrow costs, clearing land for use costs, demolition costs, etc.
F. Receivables and Payables
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 government -wide financial statements as
"internal balances."
Customer and other trade receivables are shown net of an allowance for uncollectibles. Management has
estimated the accounts receivable allowance for uncollectibles based on incremental estimated losses for aging
accounts receivable in excess of 30 days.
G. Prepaid Costs
Certain
payments to vendors reflect costs
applicable to future accounting periods and are recorded as prepaid
items in
both the government -wide and fund financial statements. These are accounted for using the
consumption
method,
and accordingly, the expenditure is
recorded in the period in which the goods or services are
received.
H. Capital Assets
Government -Wide Financial Statements, Proprietary Funds and Fiduciary Funds
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 and in the proprietary funds and fiduciary funds. General infrastructure assets consist of
roads, curbs and gutters, sidewalks, medians, street trees, street signs, bus shelters, bridges, trails, traffic signals
and storm drains/catch basins. Capital assets are defined by the City as assets with an initial cost of more than
$53000 ($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 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:
Site Improvements
Buildings and Improvements
Equipment
Infrastructure
37
5-25 years
5-50 years
5-25 years
20-60 years
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Capital Assets, Continued
Governmental Fund Financial Statements
The governmental fund financial statements do not present capital assets. Instead, capital assets purchases are
reported as capital outlay expenditure. As such, capital assets are shown as a reconciling item in the
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.
L Long -Term Debt
Government -Wide Financial Statements. Proprietary Funds and Fiduciary Funds
Long-term debt and other financed obligations, such as developer district credits, are reported as liabilities in the
government -wide, proprietary fund and fiduciary fund financial statements.
Bond premiums, discounts, and deferred gains and losses on refundings 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. Deferred gains and losses on refundings are reported as a deferred inflow or deferred outflow of
resources.
Governmental Fund Financial Statements
The governmental fund financial statements do not present long-term debt and other financed obligations.
Governmental funds recognize bond premiums and discounts during the period issued. The face amount of debt
issued is reported as other financing sources. Principal payments and reductions in the obligation are reported as
debt service expenditures. As such, long-term debt and other financed obligations are shown as reconciling items
in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.
J. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation (compensated absences). For
proprietary fund types and governmental activities, this accumulation is recorded as an expense and liability of the
appropriate fund in the fiscal year earned. For the governmental funds, the amount of accumulated unpaid
vacation, which is payable from available resources, is recorded as a liability of the fund when it has matured (i.e.,
when due and payable).
K. Claims and Judgments
When it is probable that a claim liability has been incurred at year-end and the amount of the loss can be
reasonably estimated, the City records the estimated loss, net of any insurance coverage, under its self-insurance
program. Claims payable, which include an estimate for incurred but not reported (IBNR) claims, is recorded in the
Self -Insurance Internal Service Fund.
L. 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 Fund and Public Library Special Revenue Fund.
KZ]
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
M. Net Position and Fund Balances
Government -Wide Financial Statements, Proprietary Funds and Fiduciary Funds
Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows,
and is classified into three categories:
Net Investment in Capital Assets — This amount consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement
of those assets and excludes unspent debt proceeds. Deferred outflows of resources and deferred inflows of
resources that are attributable to the acquisition, construction or improvement of those assets or related debt
also should be included in this component of net position.
Restricted — This amount represents the net position that is not
accessible
for general use because its use is
subject
to restrictions enforceable by third parties and enabling
legislation,
reduced by liabilities and deferred
inflows
of resources related to those assets.
Unrestricted — This amount represents the residual of amounts not classified in the other two categories and
represents the net equity available for the City.
Governmental 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, City
Council 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 Deputy City Manager authorizes assigned amounts for
specific purposes pursuant to the policy-making powers granted to him through a resolution adopted by the
City Council.
Unassigned — This includes the excess residual amounts in the General Fund, and the residual deficit of all
other governmental funds, which have not been restricted, committed or assigned to specific purposes.
The City Council has approved an operating reserve to be used for one-time unanticipated expenditure
requirements and local disaster. This reserve did not meet the qualifications of a stabilization arrangement. At
June 30, 2013, the balance totaled $12,130,000, which is included in the unassigned fund balance in the General
Fund.
n
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
N. Spending Policy
Government -Wide Financial Statements and Proprietary Fund Financial Statements
When
an expense is incurred for purposes
for which
both restricted and unrestricted resources are available, the
City's
policy is to apply restricted resources
first.
Unassigned
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which
balances are available, the City's policy is to apply in
ordinance specifies the fund balance:
➢
Restricted
➢
Committed
➢
Assigned
➢
Unassigned
O. Estimates
all restricted, committed, assigned and unassigned fund
the following order, except for instances wherein an
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.
P. Deferred Inflows of Intergovernmental Revenue and Unearned Revenue
Government -Wide Financial Statements
Unearned revenue represents money received during the current or previous years that has not been earned
because certain performance criteria have not been met.
Fund Financial Statements
In addition to unearned revenue, deferred inflows of resources represents funds that have been earned but have
not been received within the availability period. This does not provide an available financial resource in the current
period; therefore, recognition is deferred until these criteria have been met.
Q. Pronouncements Issued But Not Yet Adopted
The GASB
has issued pronouncements that have an
effective date subsequent to June 30,
2013, which may
impact future financial presentations. Except as noted
below, management has not currently determined what, if
any, impact
implementation of the following Statements
may have on future financial statements
of the City.
GASB Statement No. 66, Technical Corrections -2012: Effective for the City's fiscal year ending June 30,
2014.
GASB Statement
No. 68, Accounting and Financial Reporting for Pensions: Effective for the City's fiscal year
ending June 30,
2015. Management believes that there will be
a significant
impact on liabilities and net
position when this
Statement is implemented; however, the amount
of the impact
has not yet been determined.
ELI
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
Q. Pronouncements Issued But Not Yet Adopted, Continued
GASB Statement No. 69, Government Combinations and Disposals of Government Operations: Effective for
the City's fiscal year ending June 30, 2015.
GASB Statement No.
70,
Accounting
and
Financial
Reporting
for Nonexchange Financial Guarantees:
Effective for the City's
fiscal
year ending
June
30, 2014.
GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, an
amendment to GASB Statement No. 68: Effective simultaneously with GASB Statement No. 68.
R. Adoption of Accounting Standards
The City implemented the provisions of GASB Statement No. 63 (GASB 63), Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65 (GASB 65),
Items Previously Reported as Assets and Liabilities, for the year ended June 30, 2013. The impact of the
implementation of GASB 63 resulted in a new financial reporting presentation of deferred outflows of resources,
deferred inflows of resources, and net position. The impact of the implementation of GASB 65 applies to
accounting and financial reporting for governmental activities, business -type activities, proprietary funds and
fiduciary funds. The implementation of GASB 65 resulted in net position being restated as of June 30, 2012 (see
Notes 12 and 22).
The City also implemented GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance
Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements. The purpose of this Statement is to
I
ncorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is
included in the various pronouncements issued on or before November 30, 1989, which does not conflict with or
contradict GASB pronouncements.
2. CASH AND INVESTMENTS
A. Cash and Investments
Cash and investments at June 30, 2013 are classified in the accompanying financial statements as follows:
Cash and investments
Restricted:
Cash and investments
Cash and investments with fiscal agent
Total
Governmental
Activities Fiduciary Funds Total
$ 16371313324 $ 2,8677644 $ 16539983968
670003745 5,0587519 1130593264
2,147,843 2,9327800 510802643
$ 1715279,912 $ 10,858,963 $ 182,138,875
41
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
2. CASH AND INVESTMENTS, Continued
A. Cash and Investments, Continued
Cash and investments consisted of the following at June 30, 2013:
Cash on hand and demand deposits
Cash on hand $ 43715
Deposits with financial institutions 170583125
Certificates of deposit 1,0103288
Total cash on hand and demand deposits 270733128
Investments
U.S. Treasury Securities 1875253464
U.S. Government -Sponsored Enterprise Securities 6472633244
Money Market Accounts 8013821
Commercial Paper 674693180
Medium -Term Notes 2875733126
Local Agency Investment Fund 4378103297
L.A. County Pool (LACPIF) 174823708
Total investments 16379253840
Restricted cash and investments
U.S. Treasury Securities 673983799
U.S. Government -Sponsored Enterprise Securities 9993740
Money Market Accounts 376603725
Total restricted cash and investments 1130593264
Restricted cash and investments with fiscal agent:
Money Market Accounts 570803643
Total cash and investments with fiscal agent 570803643
Total cash and investments $ 18271383875
The carrying amounts of the City's demand deposits were $2,073,128 at June 30, 2013. Bank balances before
reconciling items were $1,322,987 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.
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table following 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.
EK
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
2. CASH AND INVESTMENTS, Continued
B. Investments Authorized by the California Government Code and the City's Investment Policy, Continued
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
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.
Authorized Investment Type
U.S. Treasury Obligations
U.S. Government -Sponsored Enterprise Securities
Money Market Accounts
Local Agency Investment Fund (LAIF)
Maximum
Percentage or
Maximum
Maximum
Amount of
Investment in
Percentage or
Maximum
One Issuer
Maximum
Amount of
Investment in
Authorized Investment Type
Maturity
Portfolio*
One Issuer
Local Agency Bonds
5 years
No Limit
No Limit
U.S. Treasury Obligations
5 years
No Limit
No Limit
State of California Obligations
5 years
No Limit
No Limit
California Local Agency Obligations
5 years
No Limit
No Limit
U.S. Government -Sponsored Enterprise Securities
5 years
No Limit
No Limit
Banker's Acceptances
180 days
40%
30%
Commercial Paper
270 days
25%
10%
Negotiable Certificates of Deposit
5 years
30%
No Limit
Repurchase Agreements
1 year
No Limit
No Limit
Medium -Term Notes
5 years
30%
No Limit
Money Market Mutual Funds
5 years
15%
10%
Mortgage Pass -Through Securities
5 years
20%
No Limit
Los Angeles County Pooled Investment Fund (LACPIF)
Not Applicable
No Limit
No Limit
Local Agency Investment Fund (LAIF)
Not Applicable
$ 5030002000
No Limit
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
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.
Authorized Investment Type
U.S. Treasury Obligations
U.S. Government -Sponsored Enterprise Securities
Money Market Accounts
Local Agency Investment Fund (LAIF)
Maximum
Not Applicable $ 50,000,000 No Limit
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
D. Disclosures Relating to Interest Rate Risk
As a
Percentage or
Maximum
Maximum
Amount of
Investment in
Maturity
Portfolio*
One Issuer
5 years
No Limit
No Limit
5 years
No Limit
No Limit
5 years
15%
10%
Not Applicable $ 50,000,000 No Limit
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
D. Disclosures Relating to Interest Rate Risk
As a
means of limiting
its
exposure to fair value losses arising
from rising interest rates,
the City's investment
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. 43
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
2. CASH AND INVESTMENTS, Continued
D. Disclosures Relating to Interest Rate Risk, Continued
At June 30, 2013, the City had the following investment maturities:
Restricted Investments
U.S. Treasury Securities 6,398,799 6,398,799 - - - -
U.S. Government -Sponsored
Enterprise Securities 999,740 999,740 - - - -
Total restricted investments 7,398,539 7,398,539 - - - -
Total investments subject
to interest rate risk $170,522,558 $ 89,733,165 $ 14,257,402 $ 23,288,167 $ 27,748,831 $ 15,494,993
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 actual rating, as reported by Standard & Poor's, as of year-end for each
investment type:
Investment Type
Investments:
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Commercial Paper
Medium -Term Notes"
Local Agency Investment Fund (LAIF)
L.A. County Pool (LACPIF)
Total investments
Restricted Investments:
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Total restricted investments
Total investments subject
to credit rate risk
Minimum Credit Ratings
Ratinq Fair Value AAA AA A A-1 Unrated
None $ 18,525,464 $ - $18,525,464 $
None
64,263,244
- 64,263,244
Investment Maturities (In
Years)
A-1
Investment Type
Fair Value
Less Than 1
1 to 2
2 to 3
3 to 4
4 to 5
Investments:
500,000
None
43,810,297
- -
- -
43,810,297
U.S. Treasury Securities
$ 18,525,464
$ 4,599,330
$ 1,598,252
$ 5,229,102
$ 5,244,342
$ 1,854,438
U.S. Government -Sponsored
$ 4,320,148
$92,738,173
$14,479,480
$ 7,275,921
Enterprise Securities
64,263,244
18,737,977
2,754,069
15,981,135
17,379,973
9,410,090
Commercial Paper
6,469,180
6,469,180
Medium -Term Notes
28,573,126
7,235,134
9,905,081
2,077,930
5,124,516
4,230,465
Local Agency Investment Fund (LAIF)
43,810,297
43,810,297
-
-
-
-
L.A. County Pool (LACPIF)
1,482,708
1,482,708
-
-
-
-
Total investments
163,124,019
$ 82,334,626
$ 14,257,402
$ 23,288,167
$ 27,748,831
$ 15,494,993
Restricted Investments
U.S. Treasury Securities 6,398,799 6,398,799 - - - -
U.S. Government -Sponsored
Enterprise Securities 999,740 999,740 - - - -
Total restricted investments 7,398,539 7,398,539 - - - -
Total investments subject
to interest rate risk $170,522,558 $ 89,733,165 $ 14,257,402 $ 23,288,167 $ 27,748,831 $ 15,494,993
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 actual rating, as reported by Standard & Poor's, as of year-end for each
investment type:
Investment Type
Investments:
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Commercial Paper
Medium -Term Notes"
Local Agency Investment Fund (LAIF)
L.A. County Pool (LACPIF)
Total investments
Restricted Investments:
U.S. Treasury Securities
U.S. Government -Sponsored
Enterprise Securities
Total restricted investments
Total investments subject
to credit rate risk
Minimum Credit Ratings
Ratinq Fair Value AAA AA A A-1 Unrated
None $ 18,525,464 $ - $18,525,464 $
None
64,263,244
- 64,263,244
- -
-
A-1
6,469,180
- -
- 6,469,180
-
A
28,573,126
4,320,148 9,273,498
14,479,480 -
500,000
None
43,810,297
- -
- -
43,810,297
None
1,482,708
675,967
806,741
163,124,019
$ 4,320,148
$92,738,173
$14,479,480
$ 7,275,921
$44,310,297
None 6,398,799 - 6,398,799
None 999,740 999,740 - -
7.398.539 - 7.398.539 - - -
$170,522,558 $ - $ 8,074,506 $ - $ 806,741 $ -
EV
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
2. CASH AND INVESTMENTS, Continued
E. Disclosures Relating to Credit Risk, Continued
* Included in the medium-term notes is an investment in Lehman Brothers, which is not rated as of June 30, 2013.
Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008 and the company's assets
are still in the process of being liquidated. The value of the investment reported is the amount the City estimates
they will receive when the investment is redeemed. As of June 30, 20133 this amount is $0.25 per $1.00 of the
original investment.
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 percent
or more of the City's total
investments are as follows:
Issuer Investment Type Amount % of Total Investments
Federal National Mortgage U.S. Government -Sponsored
Association
Federal Home Loan Bank
Enterprise Securities
U.S. Government -Sponsored
Enterprise Securities
Federal Home Loan Mortgage U.S. Government -Sponsored
Corporation
Federal Farm Credit Bank
G. Custodial Credit Risk
Enterprise Securities
U.S. Government -Sponsored
Enterprise Securities
18,425,626 10.23%
1579413463 8.85%
1570383810 8.35%
1273073530 6.84%
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 associated with investments
that are uninsured, are not in the name of the City, or are held by counterparty or counterparty's trust department
or agent but not in the City's name. In the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, the counterparty is then unable to deliver securities that are in the possession of another party. As of
June 30, 2013, none of the City's deposits or investments were exposed to custodial credit risk.
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 24 hours without loss of interest. The City's investments with LAIF at June 30, 2013
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.
45
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
2. CASH AND INVESTMENTS, Continued
H. Investment in State Investment Pool, Continued
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, 2013, the City had $43,810,297 invested in LAIF, which had invested 3.92 percent of the pool
investment funds in structured notes and asset-backed securities. The LAW fair value factor of 1.000273207 was
used to calculate the fair value of the investments in LAIF from their amortized cost basis.
LAW is overseen
by the
Local Agency
Investment Advisory
Board,
which consists of five members, in accordance
with State statute.
was
used
to calculate the
fair value of the investments
in the LACPIF from their amortized cost basis.
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. The 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 the 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 the LACPIF, which are recorded on an amortized cost basis.
As of June
30,
2013,
the City had
$1,482,708 invested in the
LACPIF. The LACPIF fair value factor of
0.992189588
was
used
to calculate the
fair value of the investments
in the LACPIF from their amortized cost basis.
3. LAND HELD FOR RESALE
Land held for resale as of June 30, 2013, including an allowance for the decline in value, is as follows:
Non -Major
Governmental
Funds
Land held for resale, cost $ 33351,288
Less: allowance for the decline in value (2,162,319)
Land held for resale, net $ 1,188,969
4. ACCOUNTS RECEIVABLE
Accounts receivable as of June 30, 2013, including allowances for uncollectible accounts, is as follows:
Er
Landscape
Non -Major
Maintenance
Governmental
General Fund
District#1
Funds
Total
Gross receivables
$ 133493753
$ 1517850
$ 2403861
$ 137422464
Less: allowance for
uncollectibles
(776,729)
(93,442)
(109,621)
(979,792)
Net total receivables
$ 573,024
$ 585408
$ 131,240
$ 7625672
Er
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
5. LOANS RECEIVABLE
The City has provided deferred -payment rehabilitation loans to qualified homeowners in connection with CDBG and
HOME rehabilitation programs. In the governmental funds, the loans receivable balance totaling $2,368,836 at
June 30, 2013, has been offset by deferred inflows of intergovernmental revenue in the non -major governmental funds,
since these loans are not available to finance current expenditures.
6. NOTES TO RDA SUCCESSOR AGENCY
Prior to the dissolution of the former redevelopment agency, the General Fund and Developer Fee Special Revenue
Fund advanced the former redevelopment agency $7,884,071 and $5,476,016, respectively, to provide funding for
various redevelopment activities. These advances were made in the form of promissory notes and were transferred to
the RDA Successor Agency upon dissolution. Due to the uncertainty of the collectability of the notes, an allowance for
doubtful accounts has been recorded as of June 30, 2013. These allowances will remain in place until the State of
California Department of Finance makes further determinations regarding the allowability of these items as enforceable
obligations. The unpaid accrued interest of these notes is $871,275 and $156,130, respectively.
7. CAPITAL ASSETS
A. Governmental Activities
The following is a summary of
changes
in the capital
assets for governmental
activities during the fiscal year
ended June 30, 2013:
-
4,104,246
- 16,721,305
- 68,312,313
Governmental activities:
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 Activities
Contributions to
Balance RDA Successor Balance
2012
$ 122,169,150 $
Additions Deletions Transfers
960,749 $
June 30. 2013
- $ (532,878) $ 116,387,179
29,556,368
(110,310)
482,611
- 42,019
- 29,970,688
47,486,762
-
4,104,246
- 16,721,305
- 68,312,313
12,157,484
-
846,265
(369,336) 340,820
- 12,975,233
834,960,132
(12,593,867)
14,550,993
293,316
837,210,574
924,160,746
(12,704,177)
19,984,115
(369,336) 17,397,460
948,468,808
(9,297,908) - (1,125,617) - - - (10,423,525)
(13,219,361) - (1,379,238) - - - (14,598,599)
(10,073,869) - (772,565) 369,336 - - (10,477,098)
Adjustments were to restate capital assets as of June 30, 2012
that should not have
been capitalized, were
transferred to the RDA
Successor Agency in error, or were not
properly transferred
to the RDA Successor
Agency upon dissolution
of the former redevelopment agency (see
Note 12).
CVA
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
7. CAPITAL ASSETS, Continued
A. Governmental Activities, Continued
Depreciation expense was
charged
to functions/programs
of governmental activities for the fiscal year ended
June 30, 2013 as follows:
Governmental Activities
General government $ 904,578
Public safety 482140
Public works 1992947
Parks, recreation and community service 138962137
Community development 62233
Internal service funds depreciation charged to programs 222,385
Allocated depreciation 332772420
Unallocated infrastructure depreciation 151163,864
Total depreciation expense $ 18,441,284
B. Business -Type Activities
The following is a summary
of changes
in the capital
assets for business -type activities during the fiscal year
ended June 30, 2013:
Business -type activities:
Non -depreciable assets:
Land
Construction in progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Total depreciable assets
Less accumulated depreciation:
Site improvements
Building and improvements
Equipment
Total accumulated depreciation
Total depreciable assets, net
Capital assets, net
Business -Type Activities
Balance Balance
July 1, 2012 Additions Deletions Transfers June 30, 2013
$ 152087,880 $ - $ $ - $ 15,087,880
22875,594 1,524,935 (2,2551239) 21145,290
17,9631474 11524,935 (232553239) 17,233,170
71261,748 151,453 71413,201
41,483,799 - - 41,483,799
42,2301131 51719,526 (43944,316) 2,1031786 45,109,127
902975,678 51719,526 (439443316) 2,2551239 94,0061127
(769,076) (347,098) (11116,174)
(7,5081999) (883,347) - (81392,346)
(26,8821437) (3,179,470) 438923537 (25,169,370)
Depreciation expense for business -type activities for the fiscal year ended June 30, 2013 was charged as follows:
Business -Type Activities
Transit Enterprise
ELI
$ 43409,915
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
8. LONG-TERM DEBT
A. Governmental Activities
The following is a summary
of long-term debt transactions
of the City for the
year ended
June 30, 2013:
15,430,000
90,000
15,340,000
30, 2013.
Classification
Balance
Balance
Due Within Due More
July 1, 2012 Additions
Deletions June 30, 2013
One Year Than One Year
Lease Revenue Bonds:
Series 2007
$ 12,525,000 $ -
$ (295,000) $
12,230,000
$ 310,000 $ 11,920,000
Plus deferred amount for issuance
premium
89,938 -
(3,658)
86,280
- 86,280
Total Lease Revenue Bonds
12,614,938 -
(298,658)
12,316,280
310,000 12,006,280
Certificates of Participation:
Refunding, Series 2005
Series 2007
Less deferred amount for issuance
discount
Total Certificates of Participation
Capital leases
Loans
Compensated absences
Claims and judgments
Total
11,610,000
15,490,000
(1,125,000)
10,485,000
1,160,000
9,325,000
(60,000)
15,430,000
90,000
15,340,000
(59,716) - 4,614 (55,102) - (55,102)
27,040,284 - (1,180,386) 25,859,898 1,250,000 24,609,898
Lease Revenue Bonds — Series 2007
On January 16, 2007, the Authority issued $13,785,000 Lease Revenue Bonds, Series 2007. The bonds were
issued by the Authority for the purpose of financing the costs of acquiring right-of-way for a portion of the Golden
Valley Road in connection with the payment of a judicial order by the City. 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.
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 percent to 5.0 percent. Term bonds totaling $2,495,000 mature on February 1,
2033 and bear interest at 4.3 percent. Term bonds totaling $2,965,000 mature in February 2037 and bear interest
at 4.375 percent. Interest is payable semi-annually on February 1 and August 1 of each year.
The term bonds maturing on February 1, 2033 are subject to mandatory redemption commencing on February 1,
2030. The term bonds maturing on February 1, 2037 are subject to mandatory redemption commencing on
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 $19,747,479 as of June 30,
2013. For the
current year, principal
and interest paid on the bonds was $822,804
and was equal to the base lease payments as
required to be paid to
the Authority. The outstanding balance of the bonds was $12,230,000 at June
30, 2013.
M
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,
Principal
Interest
Total
2014
$ 3103000 $
5133054 $
8237054
2015
3253000
5003654
825,654
2016
3353000
4873654
8222654
2017
3503000
4743254
824,254
2018
3653000
4603254
8252254
2019-2023
220403000
230713669
431117669
2024-2028
2,4851000
116253163
431107163
2029-2033
320553000
130533589
43108,589
2034-2037
2,9651000
331,188
3,296,188
Total
$ 125230,000
$
7,517,479
$
19,747,479
Refunding Certificates of Participation — Series 2005
On July 12, 2005, the Authority issued $17,700,000 in Certificates of Participation, with an average interest rate of
3.4 percent, to advance refund $17,640,000 of outstanding 1997 Series certificates with an average interest rate of
4.9 percent. The defeased 1997 Series certificates have since been retired. The certificates are backed by lease
payments to be made by the City to the Authority for the use and occupancy of certain real property.
Principal amounts mature annually each October 1 in the years 2006 through 2020 and bear interest at rates
ranging from 3.0 percent to 4.0 percent. 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, 20157 at a price equal to the principal amount plus accrued interest to the prepayment date, without
premium.
The total principal and interest remaining to be paid on the bonds is $12,168,460 as of June 30, 2013. For the
current year, principal and interest paid on the bonds was $1,529,224 and was equal to the base lease payments
as required to be paid to the Authority. The outstanding balance of the bonds was $10,485,000 at June 30, 2013.
The annual debt service requirements on these bonds are as follows
Year Ending June 30,
Principal
Interest
Total
2014
$ 121603000 $
3683085 $
135282085
2015
121953000
3293359
135242359
2016
122353000
2873581
135222581
2017
1,280,000
2423769
13522,769
2018
1,325, 000
1943725
13519,725
2019-2021
4,2901000
260,941
4,550,941
Total
$ 10,485,000 $
1,683,460 $
12,168,460
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Certificates of Participation — Series 2007
On December 12, 20073 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. 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.
This issuance is composed 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 percent to 4.60 percent for the serial certificates and
4.75 percent for the term certificates.
The total principal and interest remaining to be paid on the certificates is $2736433499 as of June 30, 2013. For the
current year, principal and interest paid on the certificates was $771,051 and was equal to the base lease
payments as required to be paid to the Authority. The outstanding balance of the certificates was $15,430,000 at
June 30, 2013.
The annual debt service requirements on these certificates are as follows:
Loans
Year Ending June 30,
Principal
Interest
Total
2014
$ 903000 $
7083051 $
7987051
2015
1203000
7033851
823,851
2016
1503000
6983451
8482451
2017
185,000
6913751
8762751
2018
2203000
6833651
903,651
2019-2023
1,655,000
332433600
438987600
2024-2028
227703000
237653543
535357543
2029-2033
4,2053000
139623995
631677995
2034-2038
6,0351000
7552606
62790,606
Total
$ 155430,000
$
12,213,499
$
27,643,499
Balance
Balance Due Within Due in More
July 1, 2012 Additions Deletions June 30, 2013 One Year Than One Year
HUD Loans
1999 West Newhall $ 440,000 $
Boys & Girls Club 1433000
Scherzinger Lane 457,000
Total loans $ 1,040,000 $
.3i
$ (130,000) $
(23,000)
310,000 $ 1302000 $ 180,000
120,000 23,000 972000
380.000 77.000 303.000
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
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 percent. The amount outstanding at June 30, 2013 is $3107000.
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 & 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
0.56 percent. The amount outstanding at June 30, 2013 is $120,000.
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
0.56 percent. The amount outstanding at June 30, 2013 is $380,000.
Future payment requirements for the loans are combined as follows:
Year Ending June 30,
Principal
Interest
Total
2014
$ 2303000 $
293186 $
2597186
2015
2803000
213335
301,335
2016
1003000
143220
1142220
2017
1003000
83605
108,605
2018
100,000
2,885
102,885
Total
$ 810,000 $
76,231 $
8865231
Capital Lease
On February 28, 20123 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 $251,455. The
lease agreement has 60 monthly payments of $4,825 with an interest rate of 6 percent. The final payment is due
May 15, 2017. The lease was assigned by One Source Financial Corp. to Bank of the West.
The assets acquired through the capital lease are as follows:
Equipment
Less: Accumulated depreciation
Total
R
$ 252,068
(58,815)
$ 193,253
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Future capital lease payment requirements are as follows:
Year Ending June 30, Total
2014 $ 573900
2015 573900
2016 573900
2017 433425
Net minimum lease payments 2173125
Less: amount representing interest 153246
Present value of net minimum lease payments $ 2017879
Compensated absences
The City's liability for accrued and unpaid compensated absences in the governmental activities totaled to
$2,864,131 at June 30, 2013.
Claims and judgments
The City's liability for outstanding claims and judgments is $121142117 at June 30, 2013 (see Note 17).
B. Business -Type Activities
Balance Balance Due Within
Julv 1, 2012 Additions Deletions June 30, 2013 One Year
Compensated absences
Compensated absences
The City's liability for accrued and unpaid compensated absences in the business -type activities totaled $62,032 at
June 30, 2013.
9. DEPOSITS PAYABLE
The City collects deposits for a) improvements within the City; b) donations received for specified services; and c)
deposits received in advance for recreation programs or other department services. These balances represent
amounts that have been collected, for which the eligibility requirements for revenue recognition have not been met.
As of June 30, 2013, deposits payable were as follows:
General Fund
Deposits from developers
Other deposits payable
Non -Major Governmental Funds
Other deposits payable
Total deposits payable
53
$ 2,8303321
453,863
3,284,184
35,097
35319,281
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
10. DEVELOPERS CREDITS
The City and the County of Los Angeles have established the Santa Clarita Valley Bridge and Major Thoroughfare
Districts to accommodate the needs of future development anticipated by the County of Los Angeles and the City
of Santa Clarita General Plans. Included in the formation documents are provisions for district fees to be paid by
developers, which are to be used to assist the City in constructing and maintaining the infrastructure within the
areas of benefit. In lieu of paying the district fees, developers are allowed to donate infrastructure (roadways,
bridges, intersections and interchanges) that is necessary for the future development of the districts. In certain
cases, the developer may donate infrastructure with a value that exceeds the district fees required. If this occurs,
the developer can receive a credit toward future district fees or can request a cash withdrawal of the excess
amount, subject to City approval if funding is determined to be available.
As of June
30, 2013, the City accrued a liability
of $32,925,650 for the
value of infrastructure donated in excess of
the district
fees that were owed. There is no
maturity schedule for
the developer payables, and it has been
determined
that current financial resources will
not be used to repay
the liability; therefore, the liability has been
recorded as a long-term obligation in the governmental
activities in the
Statement of Net Position.
The following is a summary of developer credits by district for the year ended June 30, 2013:
11. INTERFUND TRANSACTIONS
A. Due To/Due From
At June 30, 2013, the City had the following short-term interfund receivables and payables:
Due From
Balance
Balance
Non -Major
July 1, 2012
Additions Deletions
June 30, 2013
Bridge and
Thoroughfare Districts:
General
Funds
Bouquet
District
$ 14,9547351
$ 123270,335 $ (1379443197)
$ 13,2802489
Eastside
District
41231,737
(92,491)
42139,246
Valencia
District
15,83756462
Total
15,505,915
"2
Total
35409,359
$ 35,023,734
35 12,270,3 (14,368,419)
32,925,650
11. INTERFUND TRANSACTIONS
A. Due To/Due From
At June 30, 2013, the City had the following short-term interfund receivables and payables:
The interfund payables balance represents routine temporary cash flow assistance until the amounts receivable
from other governments are collected to reimburse eligible expenditures.
921
Due From
Other Funds
Non -Major
Governmental
General
Funds
Total
Due To Other Funds:
Non -Major Governmental Funds
$ 126707811
$ 80 $
176703891
Transit Enterprise Fund
1,7385468
-
15738,468
Total
$ 3,4095279
$ 80 $
35409,359
The interfund payables balance represents routine temporary cash flow assistance until the amounts receivable
from other governments are collected to reimburse eligible expenditures.
921
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
11. INTERFUND TRANSACTIONS, Continued
B. Advances
At June 30, 2013, the City had the following interfund advances:
In March 2006, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $430,000 for
acquisition of land. The advance accrues interest at a rate equal to the yield of the average monthly investment
portfolio and will be repaid with future available resources of the Bridge and Thoroughfare Special Revenue Fund.
There is no fixed repayment schedule. At June 30, 2013, the amount of the advance outstanding is $533,659.
In December 2007, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $3,000,000
to pay outstanding developer payables at the time. The advance accrues interest at a rate equal to the yield of the
average monthly investment portfolio and will be repaid with future available resources of the Bridge and
Thoroughfare Special Revenue Fund. There is no fixed repayment schedule. At June 30, 2013, the amount of the
advance outstanding is $935,620.
In July 2010, the Developer Fee Special Revenue Fund advanced the Bridge and Thoroughfare Special Revenue
Fund $111,242 for the design and construction costs of the Newhall Avenue Pedestrian, Facilities and Sidewalk
project. The advance accrues interest at a rate equal to the yield of the average monthly investment portfolio and
will be repaid with future available resources of the Bridge and Thoroughfare Special Revenue Fund. There is no
fixed repayment schedule. At June 30, 2013, the amount of the advance outstanding is $1167826.
The General
Advances To
Other Funds
Special Revenue Fund a total of $10,356,245, which consists of
the following
individual advances:
Non -Major
Governmental
General
Funds
Total
Advances From Other Funds:
Bridge and Thoroughfare
$ 1,4697279
$ 1163826
$ 125863105
Public Library
10,3567245
10,3567245
Total
$ 11,825,524
$ 1162826
$ 117942,350
In March 2006, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $430,000 for
acquisition of land. The advance accrues interest at a rate equal to the yield of the average monthly investment
portfolio and will be repaid with future available resources of the Bridge and Thoroughfare Special Revenue Fund.
There is no fixed repayment schedule. At June 30, 2013, the amount of the advance outstanding is $533,659.
In December 2007, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $3,000,000
to pay outstanding developer payables at the time. The advance accrues interest at a rate equal to the yield of the
average monthly investment portfolio and will be repaid with future available resources of the Bridge and
Thoroughfare Special Revenue Fund. There is no fixed repayment schedule. At June 30, 2013, the amount of the
advance outstanding is $935,620.
In July 2010, the Developer Fee Special Revenue Fund advanced the Bridge and Thoroughfare Special Revenue
Fund $111,242 for the design and construction costs of the Newhall Avenue Pedestrian, Facilities and Sidewalk
project. The advance accrues interest at a rate equal to the yield of the average monthly investment portfolio and
will be repaid with future available resources of the Bridge and Thoroughfare Special Revenue Fund. There is no
fixed repayment schedule. At June 30, 2013, the amount of the advance outstanding is $1167826.
The General
Fund advanced the
Public Library
Special Revenue Fund a total of $10,356,245, which consists of
the following
individual advances:
In November 2010, the General Fund advanced the Public Library Special Revenue Fund $622,600 for the
completion of the expansion of the Canyon Country Jo Anne Darcy Library. The advance accrues interest at a
rate equal to the rate of return on investments and shall be repaid with future available resources of the Public
Library Special Revenue Fund. At June 30, 2013, the principal amount of the advance of $455,285 is
outstanding.
In January 2011, the General Fund advanced the Public Library Special Revenue Fund $93,040 for the
purchase and installation of the integrated library system software. The advance accrues interest at a rate
equal to the rate of return on investments and shall be repaid with future available resources of the Public
Library Special Revenue Fund. At June 30, 2013, the principal amount of the advance of $93,040 is
outstanding.
In March 2011, the General Fund advanced the Public Library Special Revenue Fund $1,348,000 for the
acquisition of opening -day library materials and library furnishings and equipment. The advance accrues
interest at a rate equal to the rate of return on investments and shall be repaid with future available resources
of the Public Library Special Revenue Fund. At June 30, 2013, the principal amount of the advance of
$1,348,000 is outstanding.
55
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
11. INTERFUND TRANSACTIONS, Continued
B. Advances, Continued
In May 2011, the General Fund advanced the Public Library Special Revenue Fund $8,071,596 for the
acquisition of library facilities, real property, personal property, and collections from the County of Los Angeles.
The advance accrues interest at a rate equal to the rate of return on investments and shall be repaid with
future available resources of the Public Library Special Revenue Fund. At June 30, 2013, the principal amount
of the advance of $8,071,596 is outstanding.
In August 2011, the General Fund advanced the Public Library Special Revenue Fund $388,323 for the
acquisition of a radio frequency identification system and related software for the Santa Clarita Public Library.
The advance accrues interest at a rate equal to the rate of return on investments and shall be repaid with
future available resources of the Public Library Special Revenue Fund. At June 30, 2013, the principal amount
of the advance of $388,324 is outstanding.
C. Transfers
At June 30, 2013, the
City had the following transfers:
Transfers Out
Landscape
Non -Major
Transit
Bridge and
Maintenance
Governmental
Enterprise
General Fund
Thoroughfare Public
Library District #1
Funds
Fund
Total
Transfers In:
General Fund
$ -
$ 8,460 $
6,148 $ 109,618
$ 2,652,856
$ 234,264
$ 3,011,346
Landscape Maint. District #1
9,000
-
- -
-
-
9,000
Non -Major
Governmental Funds
4,375,877
-
- 96,280
1,563,182
13,810
6,049,149
Transit Enterprise
-
-
- -
5,435,298
-
5,435,298
Total
$ 4.384.877
$ 8.460 $
6.148 $ 205.898
$ 9.651.336
$ 248.074
$ 14.504.793
Transfers from the General Fund to the Landscape Maintenance District #1 Special Revenue Fund for $9,000
were to fund current year maintenance costs for Chesebrough Park. The General Fund made transfers to non -
major governmental funds for operating and replacement costs for $2,023,850 and current year debt service
payments for $2,352,027, totaling $4,375,877.
The Bridge and Thoroughfare, Public Library and Landscape Maintenance District #1 Special Revenue Funds, and
non -major governmental funds made transfers to the General Fund for current year operating costs, including
post -employment benefits, totaling $2,777,082.
The Landscape Maintenance District #1 Special Revenue Fund transferred $96,280 for groundwater discharging
maintenance to non -major governmental funds.
The Transit Enterprise Fund made transfers to the General Fund and non -major governmental funds for transit
operation forecasts for support of transit operations for $234,264 and $13,810, respectively.
Transfers from the non -major governmental funds to the Transit Enterprise Funds totaling $5,435,298 were to
transfer Proposition A and Proposition C operating revenues in the current year.
M
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
12. FUND BALANCES AND NET
POSITION
A. Fund Balance Classification
The details of fund balance of
the governmental funds as
of June 30, 2013 are presented below:
Major Governmental Funds
Landscape
Non -Major
General
Bridge and
Public Maintenance
Governmental
Fund
Thoroughfare
Library District #1
Funds
Total
Nonspendable
Prepaid items
$ 84,535
$ -
$ - $ 421,102
$ - $
505,637
Property held for resale
-
-
- -
249,510
249,510
Advances to other funds
11,825,524
-
- -
-
11,825,524
Total nonspendable
11,910,059
-
- 421,102
249,510
12,580,671
Restricted
Landscape maintenance
-
-
- 25,518,021
3,802,353
29,320,374
Capital improvements
-
12,260,034
- -
1,531,369
13,791,403
Transportation
-
-
- -
4,730,785
4,730,785
Open space preservation
-
-
- -
10,802,950
10,802,950
Public safety
-
-
- -
1,762,646
1,762,646
Public library
-
-
- -
1,766
1,766
Community development - - - - 1,846 1,846
Air quality improvement - - - - 79,333 79,333
Stormwater - - - - 6,468,839 6,468,839
Public education and government - - - - 873,671 873,671
Tourism marketing - - - - 184,927 184,927
Low- and moderate -income housing - - - - 939,459 939,459
Total restricted - 12,260,034 - 25,518,021 31,179,944 68,957,999
Committed
Capital improvements - - - - 716,826 716,826
Total committed - - - - 716,826 716,826
Assigned
Sewer infrastructure
Capital projects
Claims and settlements
Public facilities replacement
Total assigned
Unassigned
Total fund balances
- - - - 216,368 216,368
15,500,000 - - - 4,249,999 19,749,999
12,856,328 - - - - 12,856,328
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
12. FUND BALANCES AND NET POSITION, Continued
B. Restricted Net Position
The detail of restricted net position of the governmental activities as of June 30, 2013 is presented below:
C. Fund Balance and Net Position Restatements
During the audit process for the year ended June 30, 2013 it was determined that errors in the application of
generally accepted accounting principles existed in the City's previously issued June 30, 2012 financial
statements. As a result of analyzing amounts previously reported it was determined that errors existed as
described and identified in the three tables below. The impact on the previously reported changes in net position
and changes in fund balances for year ended June 30, 2012 is not readily determinable.
Beginning fund balance has been restated as follows:
Fund balance, as previously reported at June 30, 2012
Collapse of the Public Facilities Replacement Internal Service Fund
which excludes the removal of capital assets of $2,669,393
Restate for recognition of allowance for loan loss related to
RDA Successor Agency loan
Restate for excess transfers from the General Fund to the
Self -Insurance Internal Service Fund
Restate for errors in revenue recognition
Restate for expenditures recorded in the incorrect fund
Restate Bridge and Thoroughfare developers credit payable
to exclude as a governmental fund liability
Restate for error resulting from availability recognition criteria
Restate for recognition of land held for resale
Fund balance, as restated at June 30, 2012
Q:
Bridge and
Thoroughfare Non -Major
Special Governmental
General Fund
Governmental
Activities
Restricted net position
Landscape maintenance
$ 29,241,241
Capital improvements
14,292,447
Transportation
31756,976
Open space preservation
10,7823518
Public safety
11731,261
Public library
476
Community development
173,610
Air quality improvement
79,333
Stormwater
614683839
Public education and government
871,433
Tourism marketing
184,347
Low- and moderate -income
939,459
Total restricted net position
$ 68,521,940
C. Fund Balance and Net Position Restatements
During the audit process for the year ended June 30, 2013 it was determined that errors in the application of
generally accepted accounting principles existed in the City's previously issued June 30, 2012 financial
statements. As a result of analyzing amounts previously reported it was determined that errors existed as
described and identified in the three tables below. The impact on the previously reported changes in net position
and changes in fund balances for year ended June 30, 2012 is not readily determinable.
Beginning fund balance has been restated as follows:
Fund balance, as previously reported at June 30, 2012
Collapse of the Public Facilities Replacement Internal Service Fund
which excludes the removal of capital assets of $2,669,393
Restate for recognition of allowance for loan loss related to
RDA Successor Agency loan
Restate for excess transfers from the General Fund to the
Self -Insurance Internal Service Fund
Restate for errors in revenue recognition
Restate for expenditures recorded in the incorrect fund
Restate Bridge and Thoroughfare developers credit payable
to exclude as a governmental fund liability
Restate for error resulting from availability recognition criteria
Restate for recognition of land held for resale
Fund balance, as restated at June 30, 2012
Q:
Bridge and
Thoroughfare Non -Major
Special Governmental
General Fund
Revenue Fund
Funds
$ 691942,023
$ (21,818,543)
$
28,914,252
14,105,732
(77013,892)
6,091,948
357,299
(1,360,980)
1,066,398
1,360,980
35,023,734 -
(1,310,602)
1,188,969
821122,130 13,205,191 31,219,997
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
12. FUND BALANCES AND NET POSITION, Continued
C. Fund Balance and Net Position Restatements, Continued
Beginning net position in the governmental activities has been restated as follows:
Governmental
Activities
Net position, as previously reported at June 30, 2012 $ 87236143046
Restatement of beginning fund balance of governmental funds as listed above (434013226)
Restate for allowance for loan loss related to the RDA Successor Agency loan (633463195)
Restate for capital assets capitalized in error (536403358)
Restate for capital assets that are reportable in RDA Successor Agency (521,920)
Adoption of GASB 65 - Write-off cost of previous debt issuance costs (134252731)
Restate for capital assets that should have been reported as land held for resale (6,201,589)
Net position, as restated at June 30, 2012 $ 848,077,027
Beginning net position in the internal service funds has been restated as follows:
Internal Service
Net position, as previously reported at June 30, 2012 $ 3539082981
Collapse of the Public Facilities Replacement Fund which includes capital
assets of $2,669,393 (1637753125)
Restate for excess transfers made by the General Fund (630912948)
Restate for capital assets that should not have been reported in the internal service funds5,010,612
Net position, as restated at June 30, 2012 8,031,296
13. DEFINED BENEFIT PENSION PLAN
A. Plan Description
The City contributes to the California Public Employees' Retirement System (CaIPERS), 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.
B. Funding Policy
Participants hired before April 9, 2011 are required to contribute 8 percent of their annual covered salary. The
unrepresented employee makes 2 percent of the required contributions, and the City makes 6 percent of the
contributions required of City employees on their behalf and for their account. The City continues to make the full
8 percent for SEIU employees hired before April 9, 2011. Participants hired on or after April 9, 2011, and before
January 1, 2013, are required to contribute 7 percent of their annual covered salary. The employee makes the
contributions required for their account. Participants hired on or after January 1, 2013 are required to contribute
6.25 percent 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, 2013 was
13.1 percent for miscellaneous employees. The contribution requirements of plan members and the City are
established and may be amended by CalPERS.
M
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
13. DEFINED BENEFIT PENSION PLAN, Continued
C. Annual Pension Cost
For 2013, the City's annual pension cost of $4,825,681 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 21 years from the valuation date. The actuarial assumptions included (a) a
7.75 percent investment rate of return (net of administrative expenses); (b) projected annual salary increases of
3.55 percent to 14.45 percent, depending on age, service and type of employment; (c) an inflation rate of
3.00 percent; and (d) a payroll growth rate of 3.25 percent. 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 15 -year period (smoothed market value). Initial unfunded liabilities are amortized over a closed period that
depends on the plan's 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 percent 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.
Annual Percentage
Pension Cost of APC Net Pension
Fiscal Year (APC) Contributed Obligation
06/30/2011 $ 4,9223978 100% $
06/30/2012 571863634 100%
06/30/2013 4,8253681 100%
D. Funded Status and Funding Progress
As of June 30, 2012, the most recent actuarial valuation date available, the plan was 83.8 percent funded. The
actuarial accrued liability for benefits was $108.7 million, and the actuarial value of assets was $91.1 million,
resulting in an unfunded actuarial accrued liability (UAAL) of $17.6 million. The covered payroll (annual payroll of
active employees covered by the plan) was $24.2 million, and the ratio of the UAAL to the covered payroll was
72.7 percent.
The schedule of funding progress, presented
as required
supplementary information following
the notes to
financial statements, presents multiyear trend information that
shows whether the actuarial value of
plan assets is
increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
benefits
14. POST -EMPLOYMENT HEALTH BENEFITS
A. Plan Description
The City
has elected through resolution to provide
healthcare
benefits as a single -employer defined benefit plan to
retirees,
spouses and eligible
dependents of the
City. This
Plan provides post -employment medical insurance
benefits
through the CaIPERS
Health Plan (Plan). A separate
financial report is not issued.
m
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
14. POST -EMPLOYMENT HEALTH BENEFITS, Continued
B. Eligibility
City employees who have a service retirement from the City at age 50 with five or more years of service are
eligible to receive post -employment medical benefits. Employees who have a disability retirement are also eligible.
Participants
as of July 1, 2012 Total
Active employees 334
Retirees 67
Total 401
C. Funding Policy
The City pays the full costs of coverage for the healthcare benefits paid to retirees, spouses and eligible
dependents under a City resolution that can be amended by the City Council. The City pays the costs of coverage
for these benefits as incurred on a pay-as-you-go basis. During fiscal year 2012-2013, the City contributed
$2,679,000 to the irrevocable 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 No. 45. The Plan Trustee is
U.S. Bank and Public Agencies Retirement Services (PARS) is the Trust Administrator. During fiscal year 2011-
2012, the City contributed $19,924,482 to prefund the trust. 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 6.25 percent. The asset allocation
ranges for this objective are 0 percent to 20 percent cash, 40 percent to 60 percent fixed income, and 40 percent
to 60 percent equity.
For fiscal year 2012-2013, the City contributed, on an individual basis, for employees and retirees up to the
following amounts:
Retirees Employees
Unrepresented $ 127199 $ 14,107
SEW Local 347 122199 14,107
D. Annual OPEB Cost and Net OPEB Obligation
The City's annual
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 No. 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 30 years.
The following table shows the components of the City's annual OPEB cost for the year, the amount actually
contributed to the Plan, and changes in the City's OPEB asset for the Plan:
61
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
14. POST -EMPLOYMENT HEALTH BENEFITS, Continued
D. Annual OPEB Cost and Net OPEB Obligation (Continued)
Annual required contribution
Interest on OPEB asset
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made outside of a trust
Increase in OPEB asset
OPEB asset - beginning of year
OPEB asset - end of year
Total
$ 222963000
(323,000)
(348,000)
126253000
2,6793000
11054,000
5,169, 930
$ 6,223,930
The City's annual OPEB cost, the percentage of annual OPEB cost
contributed
to the Plan, and the net OPEB
asset as of June 30, 2013 was as follows:
% of Annual
Annual
OPEB
OPEB
OPEB
Annual
Cost
Asset
Fiscal Year Ended
Cost
Contribution
Contributed
(Obligation)
06/30/2011 $
5,064,000
$ 384,000
7.6%
$ (1231947175)
06/30/2012
2,979,000
201343,105
682.9%
53169,930
06/30/2013
1,625,000
2,679,000
164.9%
632237930
E. Funded Status and Funding Progress
As of most recent actuarial valuation date on July 1, 2012, the Plan was 64.54 percent funded. The actuarial
accrued liability for benefits was $30.9 million, and the actuarial value of assets was $19.9 million, resulting in a
UAAL of $10.9 million. The covered payroll (annual payroll of active employees covered by the Plan) was
$23.9 million, and the ratio of UAAL to the covered payroll was 45.86 percent.
The schedule of funding progress, presented as required supplementary information following the notes to
financial statements, presents multi-year trend information that shows whether the actuarial value of Plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
F. Actuarial Methods and Assumptions
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
ARC are subject to continual revision, as actual results are compared with past expectations, and new estimates
are made about the future.
In the July 1, 2012 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions
include a 6.25 percent investment rate of return, which is based on the expected return on funds invested by
PARS, and an annual healthcare cost trend rate of 8.70 percent initially and reduced by decrements of 0.6 percent
to an ultimate rate of 5.0 percent thereafter. The actuarial assumption for inflation was 3.00 percent, and the
aggregate payroll increase was 3.25 percent 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 a level percentage of projected payroll on an open basis. The
remaining amortization period at July 1, 2012 was 26 years.
M
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
15. INDIVIDUAL FUND DISCLOSURES
A. Deficit Fund Balances and Net Position
Funds that have a deficit fund balance at June 30, 2013 are as follows:
Fund
Public Library Special Revenue Fund
Non -Major Governmental Funds
Federal Aid Urban Special Revenue Fund
BJA Law Enforcement Special Revenue Fund
Supplemental Law Grant Special Revenue Fund
Federal Grants Special Revenue Fund
Miscellaneous Grants Special Revenue Fund
Public Financing Authority Debt Service Fund
Deficit Fund
Balance
$ (971693951)
(124,712)
(846)
(13,034)
(936,093)
(420,881)
(80)
The City plans to eliminate the deficit in the Public Library Special Revenue Fund with future property tax receipts.
The non -major governmental fund deficits will be eliminated when the intergovernmental receivables are collected
in future periods.
B. Expenditures in Excess of Appropriations
For the year ended June 30, 2013, expenditures exceeded appropriations in the following programs/functions
(legal level of budgetary control) of the respective funds:
Community development
13050,123 13050,123
The excess expenditures
over appropriations in the
Federal Grants Special Revenue
Excess
reimbursements received
for expenditures incurred in
prior years, which were disallowed
Expenditures
and therefore are required
to be repaid to the awarding
agency (see Note 23).
Over
Funds
Appropriations
Expenditures
Appropriations
Major Governmental Funds
Bridge and Thoroughfare Special Revenue Fund
Capital outlay
$ 11,079,548
$ 1323452076
$ 2,2652528
Redemption of district credits
143368,419
14,368,419
Public Library Special Revenue Fund
Interest and fiscal charges
922458
136,781
44,323
Non -Major Governmental Funds
Public Education and Government Special Revenue Fund
General government
2442199
2472197
2,998
Federal Grants Special Revenue Fund
Community development
13050,123 13050,123
The excess expenditures
over appropriations in the
Federal Grants Special Revenue
Fund are due to grant
reimbursements received
for expenditures incurred in
prior years, which were disallowed
by the granting agency
and therefore are required
to be repaid to the awarding
agency (see Note 23).
C�
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
16. DEFERRED COMPENSATION PLAN/DEFINED CONTRIBUTION PLAN
The City has established deferred compensation/defined contribution plans for certain classifications of
management under IRC Section 401(a). City participation in contributions to the plans is mandatory. The City is
obligated to contribute amounts ranging from $2,000 to $17,500 per participant per year. Employee contributions
to certain plans are voluntary. During the year ended June 30, 2013, there were 949 participants in the plans. The
City's contributions totaled $185,091, and employees' contributions totaled $1,769,219.
17. SELF-INSURANCE
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. 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. The City's workers'
compensation coverage is also administered by SDRMA. The City is self-insured for workers' compensation up to
$250,000, but has purchased coverage through SDRMA for individual claims exceeding $250,000 up to a
maximum of $5,000,000.
The annual member contribution is $647,754 for the property/liability program and $323,113 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, 2013.
Additionally, there are no known refunds or credits due to SDRMA.
At June 30, 20133 $50,000 was accrued by the City for general liability claims and $1,064,117 was accrued for
workers' compensation claims and judgments. These accruals represent estimates of amounts to be paid for
incurred and reported claims, as well as IBNR claims based upon past experience and modified for current trends
and information.
Changes in the reported claims liability since June 30, 2011 resulted in the following:
Claims liability as of June 30, 2011
Claims and changes in estimates during the year ended June 30, 2012
Claims and payments during the year ended June 30, 2012
Claims liability as of June 30, 2012
50,000
90,545
140,545
Claims and changes in estimates during the year ended June 30, 2013 134603834
Claims and payments during the year ended June 30, 2013 (487,262)
Claims liability as of June 30, 2013 $ 1,114,117
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, 2013.
SDRMA
has published
its own financial report
for the year ended June 30, 2012, which can be obtained from
SDRMA,
1112 1 Street,
Suite 300, Sacramento,
California 95814.
ME
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
18. NON -COMMITMENT DEBT
A. 1915 Act Limited Obligation Improvements Bonds
On July 24, 1996, $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, 2013 was
$410,000.
On January 27, 20003 $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, 2013 was $490,000.
B. Community Facilities District No. 2002-1 Special Tax Bonds
On October 29, 20027 $17,370,000 of Special Tax bonds were issued for Community Facilities District No. 2002-1
(Community Facilities District). On October 12, 2012, these bonds were refunded with the issuance of Community
Facilities District No. 200-1 (Valencia Town Center) Special Tax Refunding bonds for $16,485,000. The Special
Tax Refunding 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,
2013 was $16,485,000.
19. 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. As a result, the Watershed Authority is
reported as an agency fund in these financial statements. The Watershed Authority may request the City to make
annual contributions. For the year ended June 30, 2013, the City did not make any contributions. Separate financial
statements for the Santa Clarita Watershed Recreation and Conservancy Authority can be obtained from the City's
administrative offices at 23920 Valencia Boulevard, Santa Clarita, CA 91355.
20. SANTA CLARITA PUBLIC TELEVISION AUTHORITY
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). As a result, the SCPTA is reported as an Agency fund in
these financial statements. The purpose of the SCPTA is to provide a forum for public, educational and governmental
television programs by the members, 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 3s request, make annual
contributions. For the year ended June 30, 2013, the City contributed $117,050. Separate financial statements for the
Santa Clarita Public Television Authority are prepared biannually and can be obtained from the City's administrative
offices at 23920 Valencia Boulevard, Santa Clarita, CA 91355.
65
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
21. COMMITMENTS AND CONTINGENCIES
A. Construction Commitments
The City has active construction projects as of June 30, 2013. At
year-end, the City's commitments with
contractors for infrastructure projects
are as follows:
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 to
or liabilities.
reimbursements
Contract
Date as of
Remaining
Project
Amount
June 30, 2013
Commitments
Pavement
$ 127187020
$ 5477718
$ 131703302
Bridges
1036887397
1,1957859
934923538
Medians
32379,326
7777025
23602,301
B. Encumbrances
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.
reimbursements
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 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, 2013 as follows:
General Fund
Other governmental funds
C. Contingencies
Amount
408,447
4,736,982
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 is not material and would not have a substantial adverse
effect on the financial position of the City as of June 30, 2012. At June 30, 2012, the City has not accrued a liability
for any potential liability.
D. Repayment of Advances to Successor Agency
On April 20, 2012, pursuant to Health and Safety Code Section 34167.5, the California State Controller issued an
order to cities, counties and agencies, directly or indirectly receiving assets from a redevelopment agency after
January 1, 2011, to reverse the transfer and return assets to successor agencies. In August 2012, the California
State Controller has started to specifically review and audit cities, counties and public agencies to ensure that all
applicable asset transfers have been reversed.
On March 8, 2011, the former redevelopment agency transferred $7.7 million to the City to repay outstanding
advances between the City and the former redevelopment agency. The City believes that the transfer of assets
was valid and, as such, has not reversed the transfer as ordered by the California State Controller. The California
State Controller has not completed the review of this transfer; therefore, the possible outcome is unknown.
M
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 27 (the Bill), which provides for the
dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City
that had previously 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 No. 12-3.
Each year, 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.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due
to the City 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 unfavorable to the City.
A. Cash and Investments
The balance of cash and investments at June 30, 2013 is classified in the accompanying financial statements as
follows:
RDA Successor
Agency
Cash and investments pooled with City $ 137803704
Restricted:
Cash and investments 530582519
Cash and investments
with fiscal agent 1,165,418
Total $ 8,004,641
B. Land Held for Resale
Land held for resale as of June 30, 2013, including allowances for the decline in value, is as follows:
Cost of land held for resale
Less: allowance for the decline in value
Land held for resale, net
67
RDA Successor
Agency
$ 2,8503000
(128387969)
$ 1,011,031
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued
C. Capital Assets
Non -depreciable assets:
Land
Construction in progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Infrastructure
Total depreciable assets
Less accumulated depreciation:
Site improvements
Infrastructure
Total accumulated depreciation
Total depreciable assets, net
Total capital assets, net
Contributions
Balance From Balance
July 1, 2012 Adjustments' the City Additions Deletions Transfers June 30, 2013
$ - $ - $ 532,878 $ - $ - $ 532,878
3,628,587 (12,441) - 90,782 - (3,313,587) 393,341
3,628,587 (12,441) 532,878 90,782 - (3,313,587) 926,219
- 110,310 -
- - - 110,310
- 580,413 -
- - 3,313,587 3,894,000
- 690,723 -
- - 3,313,587 4,004,310
* Adjustments were to restate capital assets as of June 30, 2012 that were transferred to the RDA Successor
Agency in error, or were not properly transferred to the RDA Successor Agency upon dissolution of the former
redevelopment agency.
The total depreciation expense charged to the RDA Successor Agency as of June 30, 2013 was $82,292.
D. Long -Term Debt
Classification
Balance Balance Due Within Due More
July 1, 2012 Additions Deletions June 30, 2013 One Year Than One Year
Loans from the City of Santa Clarita $ 13,318,896 $ 41,191 $ - $ 13,360,087 $ - $ 13,360,087
Tax Allocation Bonds
Series 2008
28,605,000
- (450,000)
28,155,000
470,000
27,685,000
Housing Set -Aside
8,480,000
- (135,000)
8,345,000
140,000
8,205,000
Less deferred amounts for
issuance discounts
(146,090)
7,834 -
(138,256)
-
(138,256
Total Tax Allocation Bonds
36,938,910
7,834 (585,000)
36,361,744
610,000
35,751,744
Total
$ 50,257,806
49,025 (585,000)
49,721,831
610,000
49,111,831
Loans from the City of Santa Clarita
The City of Santa Clarita advanced the former redevelopment agency a total of $13,360,087. As part of the
dissolution of the former redevelopment agency, the outstanding advances from the City were required to be
revalued using tAIF interest rates.
At June 30, 2013, there are various promissory notes outstanding between the City and the former redevelopment
agency entered into between the periods of July 1996 and June 2010. These consist of notes outstanding from the
General Fund and the Developer Fee Special Revenue Fund accumulated to $7,884,071 and $5,476,016,
respectively. The unpaid accrued interest of these notes is $871,275 and $156,130, respectively.
USE
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued
D. Long -Term Debt, Continued
Payments on these notes have been suspended pursuant to the State legislation AB 1484.
Tax Allocation Bonds
The former redevelopment agency issued Tax Allocation Bonds, which are special obligations of the Successor
Agency secured by pledged property tax revenues. The bonds are not a debt of the City and are not payable out of
any funds or properties other than those of the Successor Agency.
Tax Allocation Bonds — Series 2008
On June 12, 2008, the former redevelopment agency issued the Santa Clarita Redevelopment Agency Tax
Allocation Bonds, Series 2008, in the amount of $29,860,000. Proceeds of the bonds will be used to finance
certain projects of the former redevelopment 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 composed of $12,065,000 serial bonds maturing annually, commencing on
October 1, 2011 through 2028, and three term bonds (totaling $17,795,000) maturing on October 1, 20323
October 1, 2037 and October 1, 2042 that are payable in annual sinking fund installments commencing on
October 1, 2029. Interest on the bonds is payable semi-annually on October 1 and April 1 at rates ranging from
4.00 percent to 4.75 percent for the serial bonds and from 4.75 percent to 5.00 percent for the term bonds.
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,
Principal
Interest
Total
2014
$ 4707000 $
133103548 $
1,780,548
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
2039-2042
Total
Tax Allocation Bonds — Housing Set -Aside
4907000
132913348
1,781,348
5107000
172713348
127817348
530,000
172503548
127807548
550,000
172283948
127787948
321052000
5,7833476
828887476
338302000
570303178
8,8607178
43820,000
47018,156
828387156
63095,000
277103097
828057097
73755,000 17006,875 837617875
$ 28,155,000 $ 245901,522 $ 53,0565522
On June 12, 20083 the former redevelopment agency issued the Santa Clarita Redevelopment Agency Housing
Set -Aside Tax Allocation Bonds, Series 2008 in the amount of $8,850,000. Proceeds of the 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 bond issue is composed of $3,550,000 serial bonds maturing annually on October 1 through
2028 and three term bonds (totaling $5,300,000) maturing on October 1, 2032, October 1, 2037 and October 1,
2042 that are payable in annual sinking fund installments commencing on October 1, 2029. Interest on the bonds
is payable semi-annually on October 1 and April 1 at rates ranging from 4.00 percent to 4.875 percent for the serial
bonds and at 5.00 percent for the term bonds.
M&
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued
D. Long -Term Debt, Continued
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,
Principal
Interest
Total
2014
$ 1407000 $
3942556 $
5347556
2015
1457000
3883856
5337856
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
2039-2042
Total
E. Net Position Restatements
1507000
3823956
5327956
1557000
3763856
531,856
1607000
3703556
530,556
9107000
137463741
226567741
1,1257000
135243825
22649,825
1,4302000
1,218,088
226487088
1,815,000
8143375
226297375
2,315,000 3003625 2,6157625
$ 8,345,000 $ 75518,434 $ 15,8635434
Beginning net position has been restated as follows:
Restatement
of Net Position
Net position, as previously reported at June 30, 2012 $ (36,9991585)
Adoption of GASB 65 - Write-off previous debt issuance costs (1,198,052)
Restate for capital assets not transferred to the RDA Successor
Agency upon dissolution 5303099
Restate for recognition of land held for resale 1,011,031
Net position, as restated at June 30, 2012 $ (36,656,507)
F. Deficit Net Position
As of June 30, 2013, the RDA Successor Agency Private -Purpose Trust Fund had a deficit net position of
$36,437,830. This will be reduced with future receipt of distributions from the Redevelopment Property Tax Trust
Fund from the County and potential asset sales.
G. Payments to the County of Los Angeles
On October 10, 2012, the Successor Agency submitted the Low- and Moderate -Income Housing Fund Due
Diligence Review to the California Department of Finance pursuant to the Health and Safety Code
Section 34179.6(c). The purpose of the review was to determine the amount of cash and cash equivalents for
distributing to the affected taxing entities. After conferring with the State Department of Finance, it was determined
bcs
City of Santa Clarita
Notes to Financial Statements, Continued
For the Year Ended June 30, 2013
22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued
G. Payments to the County of Los Angeles, Continued
that $451,742 was owed
back to the County of Los Angeles for distribution.
The Successor Agency
paid $387,907
in January 2013 and the
remaining balance of $63,835 in April 2013.
recorded a liability for $1,050,123 in the
Federal Grants Special Revenue
On January 15, 2013, the Successor Agency submitted the Other Fund Due Diligence Review to the California
Department of Finance pursuant to the Health and Safety Code Section 34179.6(c). The purpose of the review
was to determine the amount of cash and cash equivalents for distributing to the affected taxing entities. It was
determined that the Successor Agency did not owe any amounts back for distribution.
23. SUBSEQUENT EVENTS
A. Transfer Agreement for Housing Bond Proceeds
On September 13, 20133 the RDA Successor Agency Oversight Board approved Recognized Obligation Payment
Schedule (ROPS) 13-14B and the transfer agreement of unspent bond proceeds totaling $5,056,509 related to the
Housing Set -Aside Tax Allocation Bonds, Series 2008, pending approval from the California Department of
Finance. On November 13, 2013, the California Department of Finance approved the ROPS and the transfer of the
unspent bond proceeds. The unspent bond proceeds will be transferred to the City of Santa Clarita, which was
designated as the Housing Successor Agency of the former redevelopment agency with Resolution No. 12-3 in
January 2012.
B. Repayment of Funds For the Neighborhood Stabilization Program
On July 18, 2013, the City of Santa Clarita was notified of its obligation to repay $1,050,123 to the California
Department of Housing and Community Development for Neighborhood Stabilization Program (NSP) funds, which
are required to be spent on programs and projects that benefit low-, moderate- and middle-income individuals and
families. In fiscal year 2010-2011, the City used NSP funds to purchase land that would be used to construct a
30 -unit affordable family rental unit with bond proceeds from the Housing Set -Aside Tax Allocation Bond. However,
as a result of the dissolution of the redevelopment agency, the assets and operations of the former redevelopment
agency were ceased and suspended, which resulted in the delay of construction of the affordable housing units.
The City
has agreed to repay the funds
to the California Department of Housing
and Community Development in
January
2014. As a result, the City has
recorded a liability for $1,050,123 in the
Federal Grants Special Revenue
Fund as
of June 30, 2013.
71
72
REQUIRED SUPPLEMENTARY INFORMATION
73
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended June 30, 2013
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Other revenue
Overhead reimbursement
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year, as restated
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 6430083795 $ 6635442295 $ 6829253006 $ 223803711
331363744
33509,241
4,2463957
7373716
247,815
2542649
2633093
81444
634493691
63688,027
775513982
8633955
235303542
23090,178
5413400
(175483778)
478,916
5307916
6033389
723473
1402184
2017484
723009
(1293475)
33780,761
3,7807761
(317803761)
803773,448
835997551
8272033836
(173953715)
143969,849
14,7077358
1371303441
1,5763917
2034782480
2026417179
2070813992
5593187
2032837613
2024147949
1976023317
8123632
133202501
14,1917888
1034443494
337473394
537712912
5,9687136
532473226
7203910
630267793 7,4217992 1335883702 631663710
637487131 975943828 330113346 (635833482)
See Notes to Required Supplementary Information. 74
82,122,130
$ 94,337,301
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Bridge and Thoroughfare Special Revenue Fund
For the Year Ended June 30, 2013
Revenues
Investment income
Developer fees
Total revenues
Expenditures
Current:
Public works
Capital outlay
Debt service:
Interest and fiscal charges
Redemption of district credits
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers out
Issuance of district credits
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year, as restated
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 4623025 $
3652743 $
3117227 $
(547516)
110613000
2102619
1425863834
1423763215
135233025
576,362
14,8983061
1423213699
193,644
10,180,377
297,500
193,644
11,079,548
297,500
168,199
13,345,076
223,399
25,445
(2,2653528)
74,101
14,3683419 (1473683419)
1036712521 115707692 28,1053093 (1675343401)
(93148,496) (10,9947330) (13,2073032) (272123702)
(7,152)
(87460)
(82460)
-
12,270, 335
1272703335
(7.152)
(8.460)
12.261.875
12.270.335
See Notes to Required Supplementary Information. 75
13,205,191
$ 12,2603034
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Library Special Revenue Fund
For the Year Ended June 30, 2013
Revenues
Taxes
Charges for services
Investment income
Other revenue
Total revenues
Expenditures
Current:
General government
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 436003000 $
436002000 $
4,481,938 $
(1183062)
753000
752000
757000
6753220
13500
929957294
(63134)
(63134)
803000
802000
150,230
703230
437563500
43755,000
417013034
(533966)
43545,673
435862675
414463760
1393915
2092300
531587619
414833399
6753220
1572542
1577542
403538
1173004
92,458
927458
1363781
(443323)
53004,973
929957294
971073478
8873816
(248,473) (522407294) (474063444) 8333850
72,409
See Notes to Required Supplementary Information. 76
(417573359)
$ (931693951)
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Landscape Maintenance District #1 Special Revenue Fund
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Investment income
Total revenues
Expenditures
Current:
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 7653167
$ 7652167
$ 7317793 $
(337374)
143735,487
203539,287
1922253247
(113143040)
3803000
171,525
883553
1075333066
(823972)
15,8803654
213475,979
20,045,593
(17430,386)
1134862553
1336447816
1176863645
179583171
8,091,315
1038187213
272433318
8,5743895
1935772868
2434637029
1379293963
1075333066
(336972214) (239877050) 671153630 971023680
50,000 97000 93000
See Notes to Required Supplementary Information. 77
20,020,391
$ 255939,123
City of Santa Clarita
Schedule of Funding Progress
For the Year Ended June 30, 2013
The schedule of funding progress
presents multiyear trend
information that shows whether the actuarial
value of plan
assets is increasing or decreasing
over time relative to the
actuarial accrued liabilities for benefits.
Valuation
A. Defined Benefit Pension Plan
The funded
status of the City's
defined benefit pension plan
for the miscellaneous employees
is as follows (in
thousands):
Percentage of
Valuation
Value of
Accrued
(A) (B) (C)
(Unfunded)
Entry Age Actuarial
(D) (E) (F)
(Unfunded)
Actuarial
Liability as
Actuarial
Actuarial
Actuarial
Accrued
Funded
Annual
Percentage of
Valuation
Value of
Accrued
Liability
Ratio
Covered
Covered Payroll
Date*
Assets (AVA)
Liability
Entry Age
[(B) -(A)]
[(B) -(A)]
[(A)/(B)]
[(A)/(B)]
Payroll
Payroll
[(C)/(E)]
[(C)/(E)]
06/30/2010
$ 733450
$ 90,181
$ 162731
81.45%
$ 257461
65.71%
06/30/2011
823323
992379
17,056
82.84%
25,381
67.20%
06/30/2012
913062
1082652
17,590
83.81%
24,198
72.69%
* Based on most recent actuarial valuation available
B. Other Post -Employment Benefits
The funded status of the City's other post -employment benefits plan is as follows (in thousands):
(A) (B) (C)
(Unfunded)
Actuarial Actuarial
(D) (E) (F)
Unfunded
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)]
07/01/2006
$
$ 24,046
$ (243046)
0.00%
$ 217200
-113.42%
07/01/2010
41,425
(413425)
0.00%
257094
-165.08%
07/01/2012
193928
302879
(103951)
64.54%
237880
-45.86%
* Based on most recent actuarial valuation available
FZ]
City of Santa Clarita
Notes to Required Supplementary Information
For the Year Ended June 30, 2013
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 classified as either restricted, committed or assigned fund balances. Unexpended appropriations lapse
at year-end.
z
NON -MAJOR 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.
Developer Fees - To account for monies received from developers restricted to fund specific projects and
infrastructure maintenance throughout the City.
Bikeway - To account for monies received from the State of California restricted for bicycle and pedestrian
facilities available under Article 3 of the 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.
Proposition A - To account for the City's share of the one-half percent (0.5 percent) increased sales tax in Los
Angeles County as a result of "Proposition A." This revenue is to be used for transportation -related purposes.
Special Assessment - To account for special assessments received for small assessment districts. These funds may
be used for maintenance expenses within the districts.
State Park - To account for grant monies received from the State of California Department of Parks and Recreation for
construction or improvements of parkland 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 - To account for monies received from assessments restricted for the use of the stormwater and run-off
programs.
Federal Aid Urban - To account for receipts and disbursements associated with Federal Urban Aid grants restricted for
construction, reconstruction and improvement of highways and bridges on eligible Federal -Aid highway routes.
BJA Law Enforcement - To account for receipts and disbursements for the BJA law enforcement grant restricted for
police department programs.
Supplemental Law Grant - To account for receipts and disbursements for the supplemental law grant restricted for
police department programs.
HOME - To account for receipts and disbursements for the activity for the HOME grant program restricted to expand
the supply of affordable housing for very low- and low-income families.
Library Facilities Fees - To account for monies received from the library facilities developer fees, which are restricted
for use on library facilities.
Public Education and Government - To account for the 1 percent PEG Capital Grant funds received from video
service providers pursuant to the Digital Infrastructure and Video Competition Act of 2006.
Proposition C - To account for the City's share of the one-half percent (0.5 percent) increased sales tax in Los
Angeles County as a result of "Proposition C." This revenue is to be used for transportation -related purposes.
U
NON -MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds, Continued
Federal Grants - To account for receipts and disbursements of miscellaneous federal grant monies not accounted for
in other funds. These receipts are restricted for planning, design, improvements and maintenance of streets, roads and
bridges, facility construction and improvements, transit operations and other transit -related expenditures.
Measure R - To account for the half -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. The Tourism Marketing District was
formed to provide financing for public programs to attract tourist visits to areas where tourism is economically important
and desired. The District was established and is levied pursuant to the Parking and Business Improvement Area Law
of 1989, Part 6 of Division 18 of the California Streets and Highways Code (the 1989 Law) and the provisions of the
California Constitution Article XIIID (Proposition 218).
Open Space Preservation District (OSPD) - To account for monies received from special assessments for the costs of
acquiring open space lands, parks and parkland in accordance with the City's programs.
Miscellaneous Grants - To account for receipts and disbursements of non-federal miscellaneous grants, which are
restricted for planning, design, improvements and maintenance of streets, roads and bridges, facility construction and
improvements, transit operations and other transit -related expenditures.
Park Dedication - This fund accounts for monies received from developers restricted to finance the acquisition and
develop new parkland space. These monies are restricted under the Quimby Act by ordinance and require the
dedication of land or impose a requirement of the payment of fee in lieu.
Housing Successor Agency - To account for the transactions of the Housing Successor Agency for the continuation of
the low- and moderate -income programs of the former redevelopment agency.
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.
Public Financing Authority - To account for the construction of all capital projects that utilize public financing
authority funds.
The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest
and principal on general long-term debt.
Public Financing Authority - To account for principal and interest payments for obligations issued by the Santa
Clarita Public Financing Authority.
[L
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Special Revenue Funds
Developer Fees Bikeway Gas Tax Proposition A
Assets
Cash and investments $
312363583 $
$
122887305 $
822,131
Receivables:
Accounts, net
67588
-
Interest
53235
37855
776
Taxes
Loans
Notes to RDA Successor Agency
574763016
Allowance for doubtful accounts
(574763016)
Due from other governments
1423345
3353416
Due from other funds
Advances to other funds
1163826
Land held for resale, net
2493510
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total assets $
376083154
$
1427345
$
126347164
$
8223907
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
$ 1247785 $ 327758 $ 1667511 $ 419
35,097
26,653 -
159,882 59,411 166,511 419
1163826
1163826
249,510
231483742 823934
716,826
216,368
1,467,653 8223488
373313446 825934 1,4675653 822,488
$ 35608,154 $ 1425345 $ 1,6345164 $ 822,907
0!
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Special Revenue Funds
Special
Assessment State Park TDA Traffic Safety
Assets
Cash and investments $
572973548 $
$
2,4865449 $
Receivables:
Accounts, net
28,785
-
Interest
163712
65941
Taxes
1023389
-
Loans
Notes to RDA Successor Agency
Allowance for doubtful accounts
Due from other governments
3277669
4435575
124,025
Due from other funds
Advances to other funds
Land held for resale, net
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
-
Total assets $
574453434
$
3273669 $
2,9367965 $
1243025
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
$ 6003877 $ 197107 $ 954,091 $
3077873 - 1247025
6003877 3267980 9547091 124,025
4,8441557 689 129827874
4,844,557 689 1,982,874
$ 55445,434 $ 327,669 $ 2,9365965 $ 1243025
(Continued)
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Special Revenue Funds
Federal Aid
CDBG AQMD Stormwater Urban
Assets
Cash and investments $
$
1047684 $
623737879 $
Receivables:
Accounts, net
87,614
Interest
292
187883
Taxes
90,183
Loans
1453436
Notes to RDA Successor Agency
-
Allowance for doubtful accounts
-
-
Due from other governments
1853703
557100
247474 5397498
Due from other funds
-
- -
Advances to other funds
Land held for resale, net
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
- -
Total assets $
3313139
$
1607076
$
625957033 $ 539,498
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
$ 723674 $ 807743 $ 1267194 $
1113220 5397498
1833894 807743 1267194 5397498
145.436 124.712
11809 797333 624687839
(124.712
1.809 79,333 6.468.839 (124.712)
$ 331,139 $ 1605076 $ 6,5955033 $ 539,498
ql
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Special Revenue Funds
BJA Law Supplemental Library
Enforcement Law Grant HOME Facilities Fees
Assets
Cash and investments $
$ $
$
1,761
Receivables:
Accounts, net
17756
-
Interest
-
5
Taxes
Loans
222237400
Notes to RDA Successor Agency
-
Allowance for doubtful accounts
-
Due from other governments
81440 1457962
1447660
Due from other funds
-
Advances to other funds
-
Land held for resale, net
-
Restricted assets:
Cash and investments
-
Cash and investments with fiscal agents
- -
Total assets $
83440
$ 1457962
$
223697816
$
1,766
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
$ 63868 $ 367438 $ 17320 $
23418 1057939 1417013
91286 1427377 1427333
163619 222277446
167619 2,2271446
37 1,766
(846) (133034) - -
(846) (133034) 37 1,766
$ 8,440 $ 1455962 $ 2,3695816 $ 1,766
�7
(Continued)
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Special Revenue Funds
Public
Education and
Government Proposition C Federal Grants Measure R
Assets
Cash and investments $
771,690 $
2947825 $
17,295 $
1615776
Receivables:
Accounts, net
-
-
-
Interest
2,154
823
452
Taxes
105,374
-
Loans
-
Notes to RDA Successor Agency
-
Allowance for doubtful accounts
-
-
Due from other governments
-
8407152
5907941
Due from other funds
-
-
Advances to other funds
-
-
Land held for resale, net
-
-
Restricted assets:
Cash and investments
-
-
Cash and investments with fiscal agents
-
-
-
Total assets $
8793218
$
1,1357800
$
6083236 $
1627228
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
$ 53547 $ 106 $ 122357085 $
5,547 106 1,235,085
152
873,671 295,542 1627228
(936.093)
873,671 2955542 (9367093) 1627228
$ 879,218 $ 1,1355800 $ 608,236 $ 162,228
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Assets
Cash and investments $
Receivables:
Accounts, net
Interest
Taxes
Loans
Notes to RDA Successor Agency
Allowance for doubtful accounts
Due from other governments
Due from other funds
Advances to other funds
Land held for resale, net
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total assets $
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
Special Revenue Funds
Tourism
Marketing Miscellaneous Park
District OSPD Grants Dedication
153,247 $ 4,6007437 $
6,497
428 13,224
- 39,364
46,958
4,693,286
1,322,005
602,328
596
$ 153706 $ 157882 $ 243,050 $ 50,735
312,172
153706 157882 5557222 50,735
467,987
467,987
184,927 1026587931 1637465
- (420,881) -
184.927 10.658.931 (420.881) 163,465
$ 200,633 $ 10,6745813 $ 602,328 $ 2145200
1v]
(Continued)
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Special
Debt Service
Revenue Funds
Capital
Projects
Funds
Funds
Housing Public Public
Successor General Capital Financing Financing
Agency Projects Authority Authority
Assets
Cash and investments $
$
4,2577585 $
10 $
Receivables:
Accounts, net
-
Interest
Taxes
Loans
Notes to RDA Successor Agency
Allowance for doubtful accounts
Due from other governments
-
Due from other funds
80
Advances to other funds
-
Land held for resale, net
9393459
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
-
184
Total assets $
9393459
$
4,2577585
$
274
$
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Due to other funds
Total liabilities
Deferred inflows of resources
Intergovernmental revenues
Total deferred inflows of resources
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
$ $ 77860 $ $
80
7,860 80
939,459
4,2495725 274
939.459 4.249,725 274 (80)
$ 939,459 $ 4,2575585 $ 274 $
Are
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2013
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 33796,756
Deposits payable 352097
Due to other funds 13670,891
Total liabilities 53502,744
Deferred inflows of resources
Intergovernmental revenues 432482422
Total deferred inflows of resources 43248,422
Fund balances (deficit)
Nonspendable 2492510
Restricted 3131792944
Committed 7162826
Assigned 43466,367
Unassigned (134952646)
Total fund balances (deficit) 353117,001
Total liabilities, deferred inflow
of resources and fund balances $ 44,868,167
91
Total
Governmental
Funds
Assets
Cash and investments
$ 3030812809
Receivables:
Accounts, net
1312240
Interest
702376
Taxes
3372310
Loans
233682836
Notes to RDA Successor Agency
534762016
Allowance for doubtful accounts
(53476,016)
Due from other governments
43557,246
Due from other funds
80
Advances to other funds
1162826
Land held for resale, net
131882969
Restricted assets:
Cash and investments
436932286
Cash and investments with fiscal agents
133222189
Total assets
$ 443868,167
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 33796,756
Deposits payable 352097
Due to other funds 13670,891
Total liabilities 53502,744
Deferred inflows of resources
Intergovernmental revenues 432482422
Total deferred inflows of resources 43248,422
Fund balances (deficit)
Nonspendable 2492510
Restricted 3131792944
Committed 7162826
Assigned 43466,367
Unassigned (134952646)
Total fund balances (deficit) 353117,001
Total liabilities, deferred inflow
of resources and fund balances $ 44,868,167
91
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Special Revenue Funds
Developer
Fees Bikeway Gas Tax Proposition A
1182531 4,764,116 2,744,990
683336 12060 135559 3,179
1,106,152 -
- - 18,015
131743488 119,591 4,7957690 277483169
(766,905)
762845 421007192 34,864
863280 452313 4467258 4,770
(6803625) 122,158 4,546,450 39,634
138553113 (27567) 249,240 2,708,535
Transfers in
2287724
Transfers out
(173746)
(439,690)
(138863047)
Total other financing sources (uses)
(173746)
- (2107966)
(138863047)
Net change in fund balances
138373367
(27567) 387274
8223488
Fund balances (deficit),
beginning of year, as restated 1
Fund balances (deficit), end of year $ 3
Y7
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Special Revenue Funds
Special
Assessment State Park TDA Traffic Safety
4,410,974 -
232,850 11,390,494
7,500 -
27,931 (143439) 599
1,510,777
13,866 -
4,460,271 232,850 1123767055 135113376
3,194,321
208,624
171443897 821947368
723563 19,816 2987414
4,411,781 2285440 8,4927782
48,490 4,410 2,8837273 1,511,376
Transfers in 993700 822216
Transfers out (203493) (135113376)
Total other financing sources (uses) 793207 82,216 (135113376)
Net change in fund balances 1273697 86,626 2,8837273 -
Fund balances (deficit),
beginning of year, as restated
Fund balances (deficit), end of year
716,860
(855937)
(900,399)
RAA
CiS7
R RRQ
P 1
QR7 97d
R _
AN
(Continued)
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Special Revenue Funds
Federal Aid
CDBG AQMD Stormwater Urban
- - 2,6435177
1,021,341 212,500 - 4147786
(311) 395642
- - 58,026
1,021,341 212,189 2,7405845 414,786
7,309
- 25,314 2,8535770 539,498
753,776 - - -
- 150,340 1185193
230,000
35,756 - - -
1,019,532 175,654 2,9795272 539,498
1,809 36,535 (238,427) (124,712)
Transfers in 345890
Transfers out (79,281)
Total other financing sources (uses) - - (44,391)
Net change in fund balances 1,809 36,535 (282,818) (124,712)
Fund balances (deficit),
beginning of year, as restated
Fund balances (deficit), end of year
L!
42,798 6,751,657
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Special Revenue Funds
BJA Law Supplemental Library
Enforcement Law Grant HOME Facilities Fees
443661 3252120 201,036
11 237 247
135,402
443672 325,357 2017036 1353649
47,455
351,002
2015299
47,455 351,002 201,299
(2,753) (257645) (263) 135,649
Transfers in
Transfers out (1353402)
Total other financing sources (uses) (1353402)
Net change in fund balances (23783) (255645) (263) 247
Fund balances (deficit),
beginning of year, as restated
Fund balances (deficit), end of year
W
1,937 12,611 300 1,519
(Continued)
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Special Revenue Funds
Public
Education and Federal
Government Proposition C Grants Measure R
$ 425,333 $ $ $
2,301,435 411,838 1,705,625
3,609 2,598 1,143
428,942 2,304,033 4115838 11706,768
247,197 - - -
- 4,163
2,890 2095773
- - 1,050,123
64,401 890 4785270
311,598 3,780 1,742,329
117,344 2,300,253 (15330,491) 11706,768
Other financing sources (uses)
Transfers in -
Transfers out (2,004,711) (1,544,540)
Total other financing sources (uses) - (2,004,711) - (1,544,540)
Net change in fund balances 117,344 295,542 (1,330,491) 162,228
Fund balances (deficit),
beginning of year, as restated
Fund balances (deficit), end of year
I:
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Special Revenue Funds
Tourism
Marketing Miscellaneous Park
District OSPD Grants Dedication
1,908,826 -
1,299,800
4863618 2,000
13232 202137 53997
- 20,000
4873850 13950,963 122997800 53997
4293621 138082040
4827954
177,152
13,609
1667087
73216
2062614
8227029
5653334
4293621 23014,654
1,661,831
5723550
583229 (637691) (3623031) (5663553)
Transfers in
Transfers out (783,708)
Total other financing sources (uses) - (783,708)
Net change in fund balances 583229 (847,399) (3623031) (5663553)
Fund balances (deficit),
beginning of year, as restated 126,698 11,506,330 (58,850) 730,018
Fund balances (deficit), end of year $ 184,927 $ 10,658,931 $ (420,881) $ 163,465
(Continued)
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Revenues
Taxes
Special assessments
Intergovernmental
Charges for services
Investment income (loss)
Fines and forfeitures
Developer fees
Other revenue
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Special Revenue
General
Public
Debt Service
Funds
Capital
Projects
Funds
Funds
Housing
General
Public
Public
Successor
Capital
Financing
Financing
Agency
Projects
-
Authority
Authority
78 51
78 51
277,591
1,480,000
- 15643,208
277,591 3,123,208
(277,591) 78 (31123,157)
Transfers in
- 1,709,491
771,051
31123,077
Transfers out
- -
(7715051)
(457,291)
Total other financing sources (uses)
- 1,709,491
-
25665,786
Net change in fund balances
- 1,431,900
78
(457,371)
Fund balances (deficit),
beginning of year, as restated
Fund balances (deficit), end of year
W,
2,817
196 457
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2013
Expenditures
Total
Current:
Governmental
General government
Funds
Revenues
(187,133)
Taxes
$ 4253333
Special assessments
8,9623977
Intergovernmental
27,1893123
Charges for services
496,118
Investment income (loss)
1743896
Fines and forfeitures
12510,777
Developer fees
1,241,554
Other revenue
1092907
Total revenues
4021103685
Expenditures
Current:
General government
62169,442
Public safety
(187,133)
Parks, recreation and community service
2223233
Public works
1723553714
Community development
22005,198
Capital outlay
32657,076
Debt service:
Principal
1,710,000
Interest and fiscal charges
1,678,964
Total expenditures
32,6111494
Excess (deficiency) of revenues
over (under) expenditures
7,4991191
Other financing sources (uses)
Transfers in 620497149
Transfers out (926517336)
Total other financing sources (uses) (32602,187)
Net change in fund balances 3,8971004
Fund balances (deficit),
beginning of year, as restated 31,219,997
Fund balances (deficit), end of year $ 35,1175001
M
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Developer Fees Special Revenue Fund
For the Year Ended June 30, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Investment income $ $ 9,784 $ 68,336 $ 587552
Developer fees 2002000 121063152 906,152
Total revenues 2092784 121743488 964,704
Expenditures
Current:
Public safety (7667905) 7663905
Capital outlay 353000 560,849 863280 474,569
Total expenditures 35,000 560,849 (6803625) 1,241,474
Excess (deficiency) of revenues
over(under)expenditures (35,000) (3517065) 118553113 272063178
Other financing sources (uses)
Transfers out
(16,000)
(57583)
(173746) (123163)
Total other financing sources (uses)
(16,000)
(5,583)
(173746) (12,163)
Net change in fund balances $
(51,000)
$
(3565648)
118373367 $ 25194,015
Fund balances, beginning of year, as restated
15494,079
Fund balances, end of year
$
35331,446
100
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, 2013
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year, as restated
Fund balances, end of year
Variance from
Original
Final
Final
Budget
Budget
Budget
Actual Positive/(Negative)
460
2023804 $
202,804 $
118,531 $
(847273)
600
600
1,060
460
2033404 203,404 119,591 (83,813)
963844 96,844 763845 193999
29516
132,818
453313
873505
126,360
2297662
1223158
1073504
77
101
85,501
$ 82,934
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, 2013
Revenues
Intergovernmental
Investment income
Other revenue
Total revenues
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 438982481 $ 43552,644 $ 427647116 $ 2117472
72500 122037 137559 13522
- 132500 187015 43515
419053981 43578,181 417953690 2173509
379923144
4336805
411003192
2683473
3432010
828,708
4463258
3823450
43335,154
531972373
4,5463450
6503923
5702827 (6197192) 2493240 8683432
228,724 2287724 2283724
102
1,429,379
$ 1,467,653
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, 2013
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 236823834 $ 23542,857 $ 227447990 $ 2027133
37179 33179
236823834 235422857 227483169 2053312
363000
362000
347864
13136
23600
118,248
43770
113,478
27200
154,248
393634
1143614
23410,174 23388,609 217083535 3193926
Other financing sources (uses)
Transfers out (23373,183) (224877171) (118863047) 6013124
Total other financing sources (uses) (2,373,183) (2,487,171) (178863047) 601,124
Net change in fund balances $ 36,991 $ (985562) 8223488 $ 921,050
Fund balances, beginning of year
Fund balances, end of year
103
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, 2013
Revenues
Special assessments
Charges for services
Investment income
Other revenue
Total revenues
Expenditures
Current:
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 43213,435 $
43213,435 $
424107974 $
1977539
23500
52000
73500
23500
943750
402848
27,931
(123917)
Net change in fund balances
$ (6642934)
13,866
133866
433103685
432592283
474603271
2003988
336682454 33667,474
371943321
4733153
173883460 1,388,460
111443897
2433563
1512558
723563
783995
53056,914 5,2077492
474113781
7953711
(746,229) (9487209) 483490 9963699
Transfers in
136662013
126117650
993700 (175113950)
Transfers out
(135842718)
(1,532,443)
(203493) 17511,950
Total other financing sources (uses)
812295
797207
793207 -
Net change in fund balances
$ (6642934)
$
(8697002)
1273697
$ 9962699
Fund balances, beginning of year
Fund balances, end of year
M
4,716,860
$ 4,844,557
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, 2013
Revenues
Intergovernmental
Total revenues
Expenditures
Current:
Parks, recreation and community service
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$
1853000 $
185,000 $
603344
232,850 $
31.496
477850
1853000
185,000
2327850
477850
270,419
268,968
2083624
603344
31.496
19.816
11.680
(85,419) (115,464) 43410 1193874
105
912185 823216 (83969)
91.185 82.216 (8.969)
(85,937)
$ 689
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, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Intergovernmental $ 739662741 $ 133980,366 $ 1123903494 $ (2,5893872)
Investment income (143439) (143439)
Total revenues 719662741 1339802366 1123763055 (22604,311)
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), as restated
Fund balances, end of year
578693988 1235062292 871943368 423113924
112822222
230132585
2983414
177153171
731523210
1435197877
874923782
6,0273095
8142531 (539511) 2,8833273 324223784
(809,292) (1727270) 172,270
(809,292) (172,270) 172,270
106
(900,399)
$ 15982,874
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, 2013
Revenues
Investment income
Fines and forfeitures
Total revenues
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ $ - $ 599 $ 599
131143161 1, 3442461 1,510, 777 1663316
131143161 12344,461 1,511, 376 1663915
107
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, 2013
Revenues
Intergovernmental
Total revenues
Expenditures
Current:
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
8933035 9722292 7537776 2187516
2303000 2302000 2303000
35,756 352756 353756
131583791 13238,048 1,0193532 2183516
7,026 (1012429) 13809 1033238
$ 7,026 $ (101,429) 13809 $ 103,238
III tii0
$ 1,809
$ 1,165,817
$
13136,619
$
1,021,341 $
(1153278)
1,165,817
131362619
120217341
(1157278)
8933035 9722292 7537776 2187516
2303000 2302000 2303000
35,756 352756 353756
131583791 13238,048 1,0193532 2183516
7,026 (1012429) 13809 1033238
$ 7,026 $ (101,429) 13809 $ 103,238
III tii0
$ 1,809
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, 2013
Variance from
Original
Final
Final
Budget
Budget
Budget
Actual Positive/(Negative)
Revenues
Intergovernmental $ 2062367 $ 206,367 $ 212,500 $ 67133
Investment income 100 100 (311) (411)
Total revenues 2063467 206,467 2123189 53722
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
393830 442489 253314 193175
2002000 1503340 493660
39,830 2447489 1753654 68,835
166,637 (387022) 363535 743557
(166,537) (327920) 323920
im
42,798
$ 79,333
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Stormwater Special Revenue Fund
For the Year Ended June 30, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Special assessments
$ 23988,500 $
23988,500 $ 22643,177 $
(3453323)
Investment income
1103000
662557 397642
(263915)
Other revenue
200
- 587026
583026
Total revenues
330983500
33055,057 277403845
(3143212)
Expenditures
32,660
32,660
343890
23230
Current:
(652618)
(797481)
(793281)
200
General government
123000
122000
73309
43691
Public works
2,7143214
23862,527
278533770
83757
Capital outlay
560,900
5637682
1183193
4453489
Total expenditures
332872114
324387209
279793272
4583937
Excess (deficiency) of revenues
over (under) expenditures (188,614) (3837152) (2383427) 1443725
Other financing sources (uses)
Transfers in
32,660
32,660
343890
23230
Transfers out
(652618)
(797481)
(793281)
200
Total other financing sources (uses)
(32,958)
(46,821)
(443391)
21430
Net change in fund balances $
(221,572)
$
(4295973)
(2823818) $
147,155
Fund balances, beginning of year
677512657
Fund balances, end of year
$
61468,839
110
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Federal Aid Urban Special Revenue Fund
For the Year Ended June 30, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Intergovernmental $ 1,533,319 $ 2,133,319 $ 414,786 $ (1,718,533)
Total revenues 11533,319 2,133,319 4145786 (1,718,533)
Expenditures
Current:
Public works 153,319 2,133,319 539,498 1,593,821
Capital outlay 11380,000 - - -
Total expenditures 11533,319 2,133,319 539,498 1,593,821
Excess (deficiency) of revenues
over (under) expenditures (1245712) (124,712)
Net change in fund balances $ $ (1245712) $ (124,712)
Fund balances, beginning of year
Fund balances (deficit), end of year $ (124,712)
111
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, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Intergovernmental $ $ 90,666 $ 445661 $ (46,005)
Investment income - 11 11
Total revenues 90,666 445672 (45,994)
Expenditures
Current:
Public safety 90,819 475455 43,364
Total expenditures 90,819 475455 43,364
Excess (deficiency) of revenues
over (under) expenditures (153) (21783) (2,630)
Net change in fund balances $ $ (153) (21783) $ (21630)
Fund balances, beginning of year 11937
Fund balances (deficit), end of year $ (846)
112
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, 2013
Revenues
Intergovernmental
Investment income
Total revenues
Expenditures
Current:
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances (deficit), end of year
Variance from
Original
Final
Final
Budget
Budget
Budget
Actual Positive/(Negative)
$ 341,739 $ 3257120 $ (167619)
600 600 237 (363)
600 3422339 3257357 (163982)
3542484 3513002 33482
354,484 3513002 33482
600 (127145) (253645) (133500)
$ 600 $ (125145) (253645) $ (13,500)
113
12,611
$ (13,034)
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, 2013
Revenues
Intergovernmental
Total revenues
Expenditures
Current:
Community development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$
7002000 $
760,423 $
2017036 $
(5597387)
7002000
760,423
2017036
(5593387)
Ms,
201
60,425 (263) (603688)
$ $ 60,425 (263) $ (603688)
ifiEl
300
$ 37
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, 2013
Revenues
Investment income
Developer fees
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ $ - $ 247 $ 247
35,000 35,000 1355402 100,402
Other financing sources (uses)
Transfers out (35,000) (805000) (135,402) (55,402)
Total other financing sources (uses) (35,000) (805000) (135,402) (55,402)
Net change in fund balances $ $ (455000) 247 $ 45,247
Fund balances, beginning of year
Fund balances, end of year
115
1,519
$ 1,766
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, 2013
Variance from
Original
Final
Final
Budget
Budget
Budget
Actual Positive/(Negative)
Revenues
Taxes $ 325,000 $ 430,000 $ 4255333 $ (4,667)
Investment income 6,500 6,500 3,609 (2,891)
Total revenues 331,500 436,500 428,942 (71558)
Expenditures
Current:
General government 264,199 244,199 247,197 (21998)
Capital outlay 20,000 77,000 64,401 12,599
Total expenditures 284,199 3215199 311,598 91601
Excess (deficiency) of revenues
over (under) expenditures 47,301 1155301 117,344 21043
Net change in fund balances $ 47,301 $ 1155301 117,344 $ 2,043
Fund balances, beginning of year 756,327
Fund balances, end of year $ 873,671
116
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, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Intergovernmental $ 1034133269 $ 63663,601 $ 223017435 $ (4,3623166)
Investment income 27598 23598
Total revenues 1034133269 636632601 223043033 (42359,568)
Expenditures
Current:
Public works 23890 22890 23890 -
Capital outlay 83405,374 83470,927 890 82470,037
Total expenditures 814083264 83473,817 33780 824707037
Excess (deficiency) of revenues
over(under)expenditures 2,005,005 (1,810,216) 213003253 471103469
Other financing sources (uses)
Transfers out (23222,450) (230587393) (210043711) 53,682
Total other financing sources (uses) (21222,450) (2,0585393) (270043711) 53,682
Net change in fund balances $ (217,445) $ (3,8685609) 295,542 $ 45164,151
Fund balances, beginning of year
Fund balances, end of year $ 295,542
117
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, 2013
Variance from
Original
Final
Final
Budget
Budget
Budget
Actual Positive/(Negative)
Revenues
Intergovernmental $ 432163211 $ 33136,418 $ 4113838 $ (2,7243580)
Total revenues 432163211 331362418 4117838 (227243580)
Expenditures
Current:
Public safety
62977
43163
23814
Public works
3463920 347,475
2093773
1373702
Community development
-
120507123
(170503123)
Capital outlay
338692291 33625,049
4783270
371463779
Total expenditures
43216,211 33979,501
117423329
272373172
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
(8432083) (173303491) (4873408)
$ $ (843,083) (1,3303491) $ (487,408)
118
394,398
$ (936,093)
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, 2013
Revenues
Intergovernmental
Investment income
Total revenues
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 136693051 $ 13581,964 $ 127057625 $ 1237661
17143 13143
136693051 135812964 1,706, 768 1243804
119
$ 162,228
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, 2013
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Revenues
Charges for services $ 380,000 $ 440,000 $ 4865618 $ 465618
Investment income 3,000 1,495 1,232 (263)
Total revenues 383,000 441,495 487,850 46,355
Expenditures
Current:
General government 414,920 496,210 429,621 66,589
Total expenditures 414,920 496,210 429,621 66,589
Excess (deficiency) of revenues
over (under) expenditures (31,920) (545715) 58,229 112,944
Net change in fund balances $ (31,920) $ (545715) 58,229 $ 112,944
Fund balances, beginning of year 126,698
Fund balances, end of year $ 184,927
120
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
OSPD Special Revenue Fund
For the Year Ended June 30, 2013
Revenues
Special assessments
Charges for services
Investment income
Other revenue
Total revenues
Expenditures
Current:
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ 138662941 $ 13866,941 $ 129087826 $ 417885
27000 23000
893500 462740 20,137 (263603)
207000 203000
139563441 139132681 179503963 373282
4272026 138277490
1,808, 040
193450
306,120
2063614
993506
4272026 2,133,610
270143654
1183956
13529,415 (2197929) (633691) 1563238
121
11,506,330
$ 10,658,931
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, 2013
Revenues
Intergovernmental
Total revenues
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Variance from
Original
Final
Final
Budget
Budget
Budget
Actual Positive/(Negative)
8953714
1413809 132052694
236,322
13,927
453000 2027909
4823954
$ 8953714 $
33695,369 $
593170
122997800 $
318
(2,3953569)
8953714
336952369
122993800
(223953569)
1413809 132052694
236,322
13,927
453000 2027909
4823954
7223740
1773152
593170
13,609
318
1663087
363822
13249,683
2,1447912
8223029
173223883
11436,492
328037764
116613831
2,1413933
(540,778) (1087395) (3623031) (2533636)
Net change in fund balances $ (540,778) $ (1085395) (3623031) $ (253,636)
Fund balances (deficit), beginning of year, as restated (583850)
Fund balances (deficit), end of year $ (420,881)
122
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, 2013
Revenues
Investment income
Total revenues
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$
103500
$
1,731
$
5,997 $
5653334
4,266
10,500
1,731
5,997
4,266
73216
7,366
73216
150
564,500
6902483
5653334
1253149
571,716
697,849
5723550
1253299
(5612216) (696,118) (5663553) 1293565
$ (561,216) $ (6965118) (5663553) $ 1293565
123
730,018
$ 163,465
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
General Capital Projects Fund
For the Year Ended June 30, 2013
Revenues
Other revenue
Total revenues
Expenditures
Current:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ $ 783500 $ $ (783500)
783500 (783500)
124
1133918 113,918
4153895 2777591 1387304
(4513313) (2777591) 1737722
177093491 127097491
15709,491 1,709,491
178
2,817,825
$ 4,249,725
173,722
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Financing Authority Capital Projects Fund
For the Year Ended June 30, 2013
Revenues
Investment income
Total revenues
Other Financing Sources (Uses)
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Transfers in 771,051 771,051 771,051
Transfers out (771,051) (771,051) (771,051)
Total other financing sources (uses) - -
Net change in fund balances $ $ 78 $ 78
Fund balances, beginning of year
Fund balances, end of year
125
196
$ 274
$
$
$
78
$
78
78
78
Transfers in 771,051 771,051 771,051
Transfers out (771,051) (771,051) (771,051)
Total other financing sources (uses) - -
Net change in fund balances $ $ 78 $ 78
Fund balances, beginning of year
Fund balances, end of year
125
196
$ 274
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2013
Revenues
Investment income
Total revenues
Expenditures
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning of year
Fund balances (deficit), end of year
Variance from
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
$ $ $ 51 $ 51
51 51
134803000 1,480, 000 1,480,000
1.643.077 1.643.077 1.643.208 (131)
(33123,077) (371233077) (3,1237157) (80)
331232077 371233077 321237077
(457,291) (4577291)
33123,077 371233077 226657786 (4577291)
R - (R _ /457/711 R (457171)
126
457,291
$ (80)
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.
127
City of Santa Clarita
Combining Statement of Net Position
Internal Service Funds
June 30, 2013
Assets
Current assets
Cash and investments
Receivables:
Interest
Total current assets
Noncurrent assets
Capital assets:
Equipment, net of
accumulated depreciation
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable and accrued liabilities
Compensated absences
Claims and judgments
Total current liabilities
Noncurrent liabilities
Claims and judgments
Total noncurrent liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted
Total net position
Self- Computer Vehicle
Insurance Replacement Replacement Totals
$ 2,4765126 $ 23009,137 $ 4,424,664 $ 879097927
21,248 5,608 1
147,164 231
403606 415617 1,204 833427
52949 - 53949
AQ AAS - - AAQ AAS
131603672 413617 17204 132033493
1.336.702
128
1473164 2317209 3782373
1.973.128 4.435.811 7.745.641
City of Santa Clarita
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2013
Operating revenues
Charge for services
Total operating revenues
Operating expenses
Administration and personnel services
Services and supplies
Depreciation expense
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Investment income
Total nonoperating
revenues (expenses)
Changes in net position
Net position
Net position, beginning of year, as restated
Net position, end of year
Self- Computer Vehicle
Insurance Replacement Replacement Totals
4132122 13920 27900
2,061,307 1823052 -
1
417,942
2,243,359
(1973497) 1193407 932456 153366
37,611 103709 292032 773352
373611 103709 29,032 773352
(1593886) 1303116
129
176
1222488 923718
City of Santa Clarita
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2013
Cash Flows from operating activities
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net cash provided by (used in)
operating activities
Cash flows from non -capital
financing activities:
Cash transfers out
Net cash provided by (used in)
non -capital financing activities
Cash flows from capital
and related financing activities
Acquisition and construction of capital assets
Net cash provided by (used in)
capital and related financing activities
Cash flows from investing activities
Interest received
Net cash provided by (used in)
investing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation
(Increase) decrease in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in claims and judgments
Increase (decrease) in compensated absences
Total adjustments
Net cash provided by (used in)
operating activities
Self- Computer Vehicle
Insurance Replacement Replacement Totals
$ 2,278,565 $ 401,020 $ 2215100 $ 2,900,685
(2,327,247) (241,945) (1,696) (2,570,888)
757,680 757,680
708,998 159,075 2195404 150875477
(6,091,948) (65 091, 948)
(6,091,948) (6,091,948)
(33,401) (1155904) (149,305)
(33,401) (115,904) (149,305)
945,011 6,200 19,197 9705408
945,011 6,200 19,197 9705408
(4,437,939) 131,874 122,697 (411835368)
6,9145065
1,877,263
4,301,967
135093,295
(71,480)
$ 2,476,126
973,572
$
2,009,137
- - 25770
$
4,424,664
$ 85909,927
$ (197,497) $ 119,407 $ 935456 $ 15,366
-
97,641 124,744 222,385
1,633
- - 1,633
(71,480)
(57,973) 1,204 (128,249)
973,572
- 9735572
2,770
- - 25770
906,495
39,668 125,948 150725111
$ 7085998 $ 159,075 $ 219,404 $ 150875477
Non-cash investing, capital and financing activities
Capital assets transferred to governmental activities $ (5,010,612) $ $ $ (5,010,612)
Advances to other funds transferred to General Fund (925,223) (925,223)
130
FIDUCIARY FUNDS
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.
Santa Clarita Watershed and Recreation Conservancy Authority - To account for monies held for the operations of the
Watershed Authority, which the City performs administrative functions for.
Santa Clarita Public Television Authority - To account for monies held for the operations of the SCPTA, which the City
performs administrative functions for.
131
City of Santa Clarita
Combining Statement of Assets and Liabilities
Agency Funds
June 30, 2013
Assets
Cash and investments
Receivables:
Accounts
Interest
Taxes
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Capital assets:
Land
Building, net of accumulated depreciation
Total Assets
Liabilities
Accounts payable
Due to external parties
Total Liabilities
132
Community
Assessment Assessment Facilities
District District District
No. 92-2 No. 99-1 No. 2002-1
$ 97,826 $ 715498 $ 6477353
2,000
273 200 17803
1,685 590
582697 577106 1,651,579
$ 158,481 $ 1295394 $ 2,302,735
$ 15 $ 201 $
158,466 1295193 2,302,735
$ 158,481 $ 1295394 $ 2,302,735
City of Santa Clarita
Combining Statement of Assets and Liabilities
Agency Funds
June 30, 2013
Assets
Cash and investments
Receivables:
Accounts
Interest
Taxes
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Capital assets:
Land
Building, net of accumulated depreciation
Total Assets
Liabilities
Accounts payable
Due to external parties
Total Liabilities
133
Santa Clarita
Watershed and
Santa Clarita
Recreation
Public
Conservancy
Television
Authority
Authority Totals
$ 2703259 $ 4 $ 1,086,940
2,000
2,276
2,275
7153000 7157000
1,767,382
937383207 927387207
94,062 - 94,062
$ 10,817,528 $ 4 $ 13,4085142
$ - $ - $ 216
10,8171528 4 13,4077926
$ 10,817,528 $ 4 $ 13,4085142
City of Santa Clarita
Combining Statement of Changes in Assets and Liabilities
Agency Funds
June 30, 2013
134
Balance
Balance
07/01/2012
Additions
Deductions
06/30/2013
Assessment District No. 92-2
Assets
Cash and investments
$
783851
$
85,351
$
667376
$
973826
Receivables:
Taxes
13814
13685
17814
13685
Interest
354
273
354
273
Restricted assets:
Cash and investments with fiscal agents
63,900
50,318
555521
58,697
Total Assets
$
144,919
$
137,627
$
1245065
$
158,481
Liabilities
Accounts payable
$
878
$
212174
$
22,037
$
15
Deferred revenue
308
-
308
Due to external parties
1433733
116,453
1017720
1583466
Total Liabilities
$
1443919
$
1377627
$
1247065
$
158,481
Assessment District 99-1
Assets
Cash and investments
$
663877
$
81,791
$
777170
$
713498
Receivables:
Taxes
13035
590
17035
590
Interest
300
200
300
200
Restricted assets:
Cash and investments with fiscal agents
60,225
10
3,129
577106
Total Assets
$
128,437
$
82,591
$
81,634
$
1293394
Liabilities
Accounts payable
$
909
$
3,795
$
4,503
$
201
Deferred revenue
261
-
261
-
Due to external parties
127,267
78,796
76,870
1293193
Total Liabilities
$
128,437
$
82,591
$
81,634
$
129,394
134
City of Santa Clarita
Combining Statement of Changes in Assets and Liabilities
Agency Funds
June 30, 2013
Community Facilities District No. 2002-1
Assets
Cash and investments
Receivables:
Accounts
Taxes
Interest
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities
Accounts payable
Due to other funds
Due to external parties
Total Liabilities
Santa Clarita Watershed and Recreation
Conservancy Authority
Assets
Cash and investments
Due from other governments
Capital assets:
Land
Construction in progress
Building, net of accumulated depreciation
Total Assets
Liabilities
Due to external parties
Total Liabilities
Balance Balance
07/01/2012 Additions Deductions 06/30/2013
$ $ 23444,431 $ 1,797,078 $ 6473353
23000 - 23000
5973378 5972378
13803 - 17803
fl
i
1
it
$
-
$
73403 $
72403 $
6383993
-
638,993
-
1,627,602
41095,589
3,420,456
2,3025735
$
25266,595
$
4,102,992
$ 4,066,852 $
2,3021735
$
2713668
$
137 $
1,546 $
2707259
715,000
-
715,000
571633807
4,574,400
-
927387207
1033183
-
103,183
98,487
-
4,425
94,062
$
55637,145
$
5,289,537 $
109,154
$ 10,817,528
$
5,637,145
$
5,289,537 $
109,154 $
10,817,528
135
City of Santa Clarita
Combining Statement of Changes in Assets and Liabilities
Agency Funds
June 30, 2013
Santa Clarita Public Television Authority
Assets
Cash and investments
Total Assets
Liabilities
Accounts payable
Due to external parties
Total Liabilities
Total Agency Funds
Assets
Cash and investments
Receivables:
Accounts
Taxes
Interest
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Capital assets:
Land
Construction in progress
Building, net of accumulated depreciation
Total Assets
Liabilities
Accounts payable
Due to other funds
Deferred revenue
Due to external parties
Total Liabilities
Balance Balance
07/01/2012 Additions Deductions 06/30/2013
$ - $ 380 $ 380 $
$ 1
116,680
$ 117,060
$ 1175057
$
4
$ 1175057
$ 1
$ 117,060
$ 1175057
$ 4173397 $ 237282770 $ 2,0597227 $ 170863940
$
4
23000
6003227
23275
6005227
23275
654
23276
654
$ - $ 380 $ 380 $
1
116,680
1165677
4
$ 1
$ 117,060
$ 1175057
$ 4
$ 4173397 $ 237282770 $ 2,0597227 $ 170863940
23000
-
23000
6003227
23275
6005227
23275
654
23276
654
23276
-
7153000
-
7153000
137933342
137053086
1,731 ,046
1,767, 382
571633807
435742400
-
92738,207
1033183
-
103,183
98,487
4,425
94,062
$ 1,787 $
638,993
569
7.535.748
136
32,752 $ 347323 $ 216
- 638,993
569
1
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 Page
Financial trends
These tables contain trend information that may assist the reader in the City's current financial 140-149
performance by placing it in historical perspective.
Revenue capacity
These tables contain information that may help in assessing the viability of the City's most 150-161
significant revenue sources, the property and sales taxes.
Debt capacity
These tables present information that may assist the reader in analyzing the affordability of the 162-168
City's current levels of outstanding debt and the City's ability to issue additional debt in the
Demographic and economic information
These tables offer demographic and economic indicators to help the reader understand the 169-170
environment within which the City's financial activities take place.
Operating information
These tables contain service and infrastructure indicators that can inform one's understanding 171-173
how the information in the City's financial statements relate to the services the City provides and
the activities it performs.
137
City of Santa Clarita
Net Position by Component '
Last Eight Fiscal Years Ended June 30, 2013121
(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 position
Business -type Activities
Investment in capital assets,
net of related debt
Unrestricted
Total business -type activities
net position
Primary Government
Net investment in capital assets
Restricted
Unrestricted
Total primary government
net position
FISCAL YEAR
12-13 11-12 10-11 09-10
$738,2713282 $7433281,558 $ 71736133095 $ 657,6443168
1472923447 332752312 334523815 477693573
54,2293493 462915,965 3032013655 8578953468
6875213940 503191,277 3336543470 9076653041
6577063424 7931417211 6733973688 6372183255
$8725499,646 $872,6145046 $ 818,665,253 $ 81175273464
$ 7675613407 $ 7337787640 $ 753416,868 $ 6779113725
378353316 3,0997419 5033446 (1763196)
$ 805396,723 $ 76,8785059 $ 75,920,314 $ 675735,529
$81478323689 $81720607198 $ 7933029,963 $ 72575553893
6875213940
50,1917277
333654,470
9076653041
6975413740
8222407630
6739012134
6370423059
$952,8963369 $94924927105 $ 89435852567 $ 87972623993
Note:
(1) Accounting standards require that net position be reported in three components in the financial statements:
net investment in capital assets, restricted and unrestricted. Net position is 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 44 for the fiscal year ended June 30, 2006; therefore, only eight
years of data is presented.
(3) City of Santa Clarita implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003.
The 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
WO,
FISCAL YEAR
05-06
08-09 07-08 06-07 As Restated
$ 62926213720 $ 6723306,820 $ 66132103117 $ 61423003517
427693573 4539932804 1831343924 3270303928
6322680 1747028
92,6443739 613018,399 3434412539 3075473345
9724143312 10736442883 5235763463 6277523301
985123704 663249,901 8737372817 71,001,423
$ 825,548,736 $ 846,2015604 $ 801,524,397 $ 748,0541241
$ 66,4783547 $ 633526,242 $ 62,2462621 $ 6377413429
3033396 229572611 135533088 (4067224)
$ 70,081,943 $ 66,483,853 $ 63,799,709 $ 635335,205
$ 696,1003267 $ 73538337062 $ 723,4563738 $ 6782041,946
97,4143312
1073644,883
5235763463
62,7523301
10221163100
6932072512
8932903905
7025953199
$ 895,6303679 $ 91236857457 $ 86533243106 $ 81123893446
139
City of Santa Clarita
Changes in Net Position '
Last Eight Fiscal Years Ended June 30, 2013 (2,
(accrual basis of accounting)
Expenses
Governmental Activities
General government
Public safety
Public works
Parks, recreation and community service
Community development
Unallocated infrastructure depreciation
Interest on long-term debt
Total governmental activities expenses
Business -type Activities
Transit
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental Activities
Charges for services:
General government
Public safety
Public works
Parks, recreation and community service
Community development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type Activities
Charges for services:
Transit
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government revenues
FISCAL YEAR
12-13 11-12 10-11 09-10
$ 3529213943 $ 3336642470 $ 4730483462 $ 3221163335
19,9407098
27,391,075
2132803904
17,9123704
2826517261
3036232718
2577993166
2627583527
213809,820
1932823538
1172813552
2728357763
7,2147293
53896,640
1175473650
13,8313341
1521637864
1638442238
16, 392,901
15,5453626
1,992,574
333912058
436503566
574763918
13036937853
1373093,737
13870013201
139,4773214
127
$ 156,347,606 $ 162,0245372 $ 162,128,244 $ 162,825,922
$ 24,3233027
2,284,334
9,943,014
4,371,888
1,611,184
9,061,950
33,585,797
85,181,194
$ 1337192117
2,079,109
7,209,724
4,156,386
5,152,484
16,032,433
28,616,388
76,965,641
$ 398,181
2,305,608
4,929,602
4,220,977
12,059,509
14,090,686
31,325, 725
69,330,288
$ 396,651
2,194, 038
3,162,052
3,956,933
15,937,913
16,224,269
15,249,634
57,121,490
628637086
636162778
635733879
371813614
825793209
733852264
639133534
1072603579
$ 10921363727 $ 963009,675 $ 9538613119 $ 7025633683
Note:
(1) City of Santa Clarita implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003.
(2) City of Santa Clarita implemented GASB 44 for the fiscal year ended June 30, 2006; therefore, only eight
years of data is presented.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
MX
FISCAL YEAR
08-09 07-08 06-07 05-06
$ 30,0943380 $ 2734882731 $ 2630293070 $ 2472253414
17,489, 870
1634827917
1433983408
13,8213626
4825143645
3035497888
1932733980
634173841
32,7473618
2138177251
2035733077
2079883533
9,7613681
932577881
83985,449
16, 939,976
14,405, 047
1331287617
1239203310
132683939
5,7863174
331277998
23087,949
136693701
158,7993415
12138537283
10432683243
8533323030
21
$ 181,098,794 $ 143,359,600 $122,583,349 $ 1015840,487
$ 621,624
1,898,022
2603524
3,849,699
35J383334
9,931,109
38,785,576
90,484,888
$ 237372355
2,291,100
355,817
3,875,539
26,341,684
22,600,793
39,003,536
97,205,824
$ 302,075
2,131,060
3,575,546
3,895,422
20,182,722
26,641,145
24,770,306
81,498,276
$ 186,171
2,032,652
2,512,093
3,794,662
19,068,982
23,465,852
60,971,404
112,0313816
312993263
332167239
538272778
439503584
1326533177
113876,720
1236163641
333513941
$ 10724373328 $ 11239167204 $10036923895 $ 12073343341
(Continued)
iEi
City of Santa Clarita
Changes in Net Position '
Last Eight Fiscal Years Ended June 30, 2013 (2)
(accrual basis of accounting)
Sales taxes
$ 3220573358
FISCAL
YEAR
2425113238
Property taxes
12-13
11-12
10-11
09-10
Net Revenues (expenses):
771417953
639202244
636973241
674073923
Governmental activities
$(4525127659)
$(603128,096)
$(6836703913)
$(8273553724)
Business -type activities
(126987220)
(538862601)
234033788
(979063515)
Total net revenues (expenses)
$(4772107879)
$(6630147697)
$(6632673125)
$(9272623239)
General Revenue and Other Changes
in Net Position
7336637605
7538083702
6873343452
Governmental activities
Taxes:
Sales taxes
$ 3220573358
$ 2838287139
$ 2737013757 $
2425113238
Property taxes
32,3413369
342818,426
2439963219
2571263278
Franchise taxes
771417953
639202244
636973241
674073923
Real property transfer taxes
7067180
5902474
330823456
475643687
Transient occupancy taxes
275567774
223807547
231062521
270503857
Unrestricted revenue in lieu of motor vehicle taxe
91,062
(63844,199)
(538082300)
(714773547)
Unrestricted revenue in lieu of sales taxes
373163058
3,2213498
Grants and contributions not restricted
to specific programs
872883
8123475
8963708
Unrestricted investment earnings
(827870)
135092201
337563112
478713133
Miscellaneous revenue
3107676
52372,890
931483163
411613677
Transfers
(571873224)
(63844,199)
(538082300)
(714773547)
Total governmental activities
6929353278
7336637605
7538083702
6873343452
Business -type activities
Unrestricted investment earnings
Miscellaneous revenue
Transfers
Total business -type activities
Total primary government
Extraordinary Item:
Gain from dissolution of former redevelopment
agency of the City of Santa Clarita
Change in Net Position
297660 147 (272303) 823554
5,187,224
5,216,884
$ 7571523162
6,844,199
6,844,346
$ 80,5077951
40,413,284
5,808,300
5,780,997
$ 8135892699
7,477,547
7,560,101
$ 7578943553
Governmental activities $ 24,4223619 $ 53,9487793 $ 73137,789 $(1410213272)
Business -type activities 3,5187664 9577745 81184,785 (273462414)
Total primary government $ 275941,283 $ 54,9065538 $ 15,322,574 $(165367,686)
Note:
(1) City of Santa Clarita implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003.
(2) City of Santa Clarita implemented GASB 44 for the fiscal year ended June 30, 2006; therefore, only eight
years of data is presented.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
l EA%
FISCAL YEAR
08-09 07-08 06-07 05-06
$(6823143527)
(523463939)
$(7326613466)
$(243647,459)
(537957937)
$(30,443,396)
$ (2237693967)
879,513
$ j2
$ 2626993786
(872053932)
$ 18,4933854
$ 27,7513506 $ 2930767388 $ 2337903825 $ 2222043192
2678203068
243482,930
2738913202
23,1067806
627043074
630282903
632483912
525607153
428163638
8362824
130733774
12544,534
222603708
23433,651
138043923
1,824,394
7376593993
683737,606
7632403123
603,990
370833353
83490,865
831563017
629653521
170153413
132522281
138623901
2233241
670203940
43566,884
439703193
118913292
3,193,421
(870063128)
(83431,120)
4413376
(1220547795)
7376593993
683737,606
7632403123
5128693328
938,901
8,006,128
8,945,029
$ 8276053022
$ 573453466
3,598,090
$ 85943,556
48,961
8,431,120
8,480,081
$ 773217,687
$ 443090,147
2,684,144
$ 46,7745291
26,367
(441,376)
(415,009)
$ 7538253114
$ 5334703156
464,504
$ 53,934,660
13050
883,615
12,054,795
12,939,460
$ 6478083788
$ 7875693114
4,733,528
$ 835302,642
143
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2013
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All Other Governmental Funds
Reserved
Unreserved:
Special revenue funds
Debt service fund
Capital projects fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
FISCAL YEAR
12-13
11-12
10-11
09-10
08-09
City of Santa
Clarita, Administrative Services Department - Finance
Division
$ 1935463015
$ 32,6173139
5832112508
4176743470
$ 1139103059
$ 18,9027350
$ 2338457861
663257
1233562339
4731063536
309,078
5727781
3523202706
5076643338
46,9157238
$ 94,337,301
$ 6959423023
$ 83,6905219
$ 77,757,523
$ 745291,609
$ 513195,454
$ 7076673494
231092198
(770483095)
(243048,962)
(1770043471)
3337252531
34, 502,270
$ 6702612
$ 2838853983
$ 2828133152
68,957,999
4639152965
5772053072
716,826
434662367
332753312
376373410
(1005597)
(5637183519)
(7276923440)
Total all other governmental funds $ 6421467207 $ 2233583741 $ 1679633194 $ 62,981,221 $ 811117,198
FUND BALANCES
Fiscal Year Ended June 30, 2013
■ All Other
Government,
■ General Fund
40.48%
59.52%
Note:
(1) Balance
as restated, see financial statements for the applicable
year.
Source:
City of Santa
Clarita, Administrative Services Department - Finance
Division
flet:!
FISCAL YEAR
07-08 06-07 05-06 (') 04-05 03-04
$ 34,920,547
$ 3436997034
$ 2037863040
$ 1576383513
$ 1230427182
3171533879
283500,824
1832323779
3027803939
2331092773
$ 66,074,426 $ 63,199,858 $ 39,018,819 $ 46,419,452 $ 35,151,955
$ 5129723970 $ 4833032588 $ 80,3993389 $ 3023883825 $ 413563,581
2823777796 338272570 (7,1593062) 2,843,589 (8672508)
(15,8737835) (1034612382) (477433697) (424027225) (33944,409)
3820507255 4,5922332 (2493111) (698,632) (1002527)
$ 33,2777150 $ 4632622108 $ 68,2471519 $ 28,1317557 $ 3636512137
90
80
70
60
50
0
40
� 30
20
10
0
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Fiscal Year
145
City of Santa Clarita
Changes In Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2013
(modified accrual basis of accounting)
Revenues:
Taxes
Licenses and permits
Developer fees
Investment income
Intergovernmental
Fines and forfeitures
Service charges
Other revenues
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay
Debt service:
Principal
Interest, professional services and fiscal charge
Redemption of district credits
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 oth
Proceeds from capital lease
Transfers in
Transfers out
Issuance of district credits
Total Other Financing Sources (Uses)
FISCAL YEAR
12-13 11-12 10-11 09-10
$ 733972,006 $ 73,6253713 $ 722474,882 $ 8037142829
43246,957
410973709
3,6751424
430932250
1538287388
711813986
282,776
33053,363
13702,006
217393794
3,7981498
534852925
273452,216
28,3753142
19,780,700
33,881,145
23114,166
116743085
1,891,500
13936,318
363311,324
28,1453012
232608,272
10,8122521
332,146
6,4252792
72685,141
712342923
161,959,209 152,2653233 1332197,193 1473212,274
353433,288
K8163449
42,213,597
27,951,510
193894,859
25,4123420
21,230,594
17,862,129
273968,407
20,7533607
34,2101327
2035942575
193824,550
19,523,584
211853,319
203048,430
73252,424
5,923,872
11,575,365
10,849,942
233837,533
271403,439
21,311,885
46,183,268
13750,538
2,3382787
21246,218
23611,372
23039,144
317433134
42796,695
5,411,152
142368,419
-
-
-
152,369,162
155,9152292
1592438,000
1513512,378
9,5901047
(3,650,059)
(26,240,807)
(43300,104)
-
2522068
-
-
9,069,495
16,5382674
50,869,852
18,953,115
(142256,719)
(29,8102448)
(641714,376)
(282930,662)
122270,335
-
7,083,111
(13,019,706)
(13,8443524)
(929773547)
Extraordinary Item:
Dissolution of Santa Clarita Redevelopment Agen( 8,317,116
Net change in fund balances 161673,158 (81352,649) (40,0851331) (141277,651)
Fund balances - Beginning of Year, as restated
Fund balances - End of Year
Debt service as percentage of noncapital expenditure 2.95% 4.40% 5.96% 6.84%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
LLL
FISCAL YEAR
08-09 07-08 06-07 05-06 04-05 03.04
$ 872659,599 $
88,088,786 $
70576,755 $
662164,485 $
53,763,779 $
432940,454
307,218
51256,748
4,203,933
62907,826
5,127,705
5,303,309
15,763,070
221290,808
6,747,767
28,028,933
11,963,054
7570,352
10,749,728
81287,441
7,926,763
2,881,133
3,148,731
9193858
28,8821884
241247,611
37,300,213
38,5261364
33,089,887
36,119,851
1,759,371
21121,570
1,918,954
1,904,273
11803,686
1,051,371
8,3751771
91931,041
13,463,673
13,081,649
13,339,462
12580,933
5,0771400
3,368,879
4,356,961
1201,674
2,408,463
3,767,800
161,965,041 163,592,884 146,495,019 170,1461337 1241644,767 111,253,928
27,250,056
25,965,196
23,4112750
242668,150
117217,783
12,4362244
1724393295
16,342,979
14,3471833
132658,723
121429,192
12,102,441
42,9371168
251977,763
19,511,097
61802,081
8,901,359
8,6921908
20,1261412
201156,343
18,943,146
172376,609
15,964,949
14,2261090
7,0951386
73583,236
9,0511652
17,164,505
22,531,795
2120393274
41,826,511
441906,802
57,9261955
49,435,744
35,096,683
19,2513357
2,0729341
11927,198
2,3741870
1,367,359
21060,319
4,3321159
5,2791549
41632,979
2,2981974
21878,536
11570,581
1,760,134
164,0261718
1471492,496
147,866,277
133,351,707
109,772,661
93,840,607
(2,061,677)
12,150,426
(23,281,554)
16,100,388
54,235,000
(226,682)
43,112,541
(54,66801)
(1,371,258)
13,894,752
27,468,089
(29,881,193)
36,794,630
17,700,000
(172225,304)
7,865,612
(19,409,716)
14,872,106
8,157,999
(201282,188)
17,413,321
2,590,955
8,278,692
(18,3801627)
(11,131,128) 42,452,198 11,481,648 (11,069,408) (12,124,189) (7,5101980)
(13,192,805) 58,552,586 10,110,390 25,725,222 2,747,917 9,902,341
168,601,612
110,049,026
99,351,576
74,551,009
71,803,092
61,900,751
$ 155,408,807 $
168,601,612 $
109,461,966 $
100,276,231 $
74,551,009 $
71,803,092
5.54% 5.16% 4.27% 4.85% 4.57% 8.02%
147
City of Santa Clarita
Assessed Values ltl and Actual Values of Taxable Property
Last Ten Fiscal Years
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2013
PERSONAL
PROPERTY
■ LAND
40.45%
Note:
(1) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
(2) Direct Rate includes Redevelopment Agency areas.
Source: HdL Coren & Cone, County of Los Angeles, Auditor -Controller Office, Combined Tax Rolls 2012/13
MR
STATE ASSESSED
LOCALLY ASSESSED
SECURED
(UTILITY)
SECURED
Fiscal
IMPROVE-
PERSONAL
IMPROVE-
PERSONAL
OTHER
Year
LAND
MENTS
PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
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
1,515,305
6,727,866
-
8,243,171
9,899,005,161
10,912,016,138
98,107,607
(214,371,451)
20,694,757,455
2008-09
1,750,395
2,264,780
-
4,015,175
9,416,163,697
11,115,441,327
105,296,475
(323,630,904)
20,313,270,595
2009.10
1,750,395
2,264,780
-
4,015,175
9,160,567,699
11,280,024,994
112,335,544
(330,372,395)
20,222,555,842
2010.11
1,431,971
2,264,780
-
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
2,264,780
-
3,696,751
8,882,930,332
11,516,988,299
111,202,431
(400,045,608)
20,111,075,454
2012.13
1,431,971
2,264,780
-
3,696,751
9,989,545,816
13,726,755,146
107,166,367
(412,668,046)
23,410,799,283
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2013
PERSONAL
PROPERTY
■ LAND
40.45%
Note:
(1) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
(2) Direct Rate includes Redevelopment Agency areas.
Source: HdL Coren & Cone, County of Los Angeles, Auditor -Controller Office, Combined Tax Rolls 2012/13
MR
LOCALLY ASSESSED
TOTALS
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
03-04 04-05 05-06 06-07 07-08 0849 09-10 10-11 11-12 12-13
Fiscal Year
149
UNSECURED
BEFORE
TAXABLE
%
TOTAL
OWNER
IMPROVE-
PERSONAL
OTHER
f
OTHER
ASSESSED
INCR.
DIRECT
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
EXEMPTIONS
VALUE
(DECR.)
RATE (2)
TAX RELIEF
$254,085,173
$411,805,661
$(1,135,000)
$664,755,834
$ 13,795,632,501
$13,606,868,696
9.73%
0.06279%
$199,643,032
242,047,848
399,549,912
(76,000)
641,521,760
14,937,115,985
14,742,257,875
8.34%
0.06432%
205,852,669
216,098,046
453,406,084
(9,513,134)
659,990,996
17,160,386,817
16,939,401,486
14.90%
0.06909%
206,658,586
255,417,833
482,574,856
(7,299,585)
730,693,104
19,177,126,742
18,915,880,793
11.67%
0.08039%
206,464,204
264,708,723
558,804,055
(32,916,267)
790,596,511
21,740,884,855
21,493,597,137
13.63%
0.08327%
220,192,568
359,543,253
600,420,921
(15,127,698)
944,836,476
21,600,880,848
21,262,122,246
-1.08%
0.08313%
224,731,598
346,874,191
553,829,644
(13,331,377)
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
0.26%
0.07392%
220,496,294
349,415,601
534,947,944
(13,693,787)
870,669,758
21,399,181,358
20,985,441,963
-0.87%
0.07291%
216,163,460
329,350,845
541,533,568
(15,907,716)
854,976,697
24,698,048,493
24,269,472,731
15.65%
0.07291%
236,577,388
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
03-04 04-05 05-06 06-07 07-08 0849 09-10 10-11 11-12 12-13
Fiscal Year
149
30,000
25,000
20,000
15,000
f
10.000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
Last Ten Fiscal Years
03-04 04-05 05-06 06-07 07-08 0849 09-10 10-11 11-12 12-13
Fiscal Year
149
City of Santa Clarks
Redevelopment Agency I'I
Assessed Values IPI and Actual Values of Taxable Property
Last Ten Fiscal Years
(1) The Redevelopment Agency of the City of Santa Clarita was established on November 28, 1989, pursuant to the State of
California and Safety Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base
Year was calculated in fiscal year 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment
agencies were dissolved by the State of California effective February 1, 2012.
(2) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
150
STATE ASSESSED
LOCALLY ASSESSED
SECURED (UTILITY)
SECURED
FISCAL
IMPROVE -PERSONAL
IMPROVE-
PERSONAL
OTHER
YEAR
LAND
MENTS
PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
2003-04
$52,416
$ 39,351
$ 22,527
$114,294
$161,106,889
$ 159,691,365
$3,806,986
$ (4,148,124)
$320,457,116
2004-05
65,404
49,101
28,109
142,614
180,810,905
166,935,237
2,314,234
(5,083,826)
344,976,550
2005-06
61,007
45,801
26,219
133,027
273,260,130
176,564,344
2,435,378
(4,859,824)
447,400,028
2006-07
50,158
37,657
21,558
109,373
295,792,467
185,299,271
2,545,972
(5,085,710)
478,552,000
2007-08
-
-
-
-
335,974,647
205,086,767
2,346,546
(4,630,171)
538,777,789
2008-09
-
-
-
-
348,100,511
217,393,278
2,064,527
(3,754,719)
563,803,597
2009-10
-
-
-
-
343,043,150
214,695,279
1,775,246
(3,779,814)
555,733,861
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
2012-13
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(1) The Redevelopment Agency of the City of Santa Clarita was established on November 28, 1989, pursuant to the State of
California and Safety Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base
Year was calculated in fiscal year 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment
agencies were dissolved by the State of California effective February 1, 2012.
(2) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code.
150
151
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
TAX RELIEF
$6,272,382
$19,035,089
$ (33,000)
$25,274,471
$ 345,845,881
$(266,351,517)
$79,494,364
$19,453,491
$1,923,600
6,326,173
22,151,970
(33,000)
28,445,143
373,564,307
(266,351,517)
107,212,790
27,718,426
2,161,147
51901,959
23,034,914
(91,000)
28,845,873
476,378,928
(266,351,517)
210,027,411
102,814,621
2,053,943
26,593,269
25,569,962
(16,300)
52,146,931
530,808,304
(266,3513517)
264,456,787
54,429,376
1,971,567
28,204,577
48,299,529
(217,300)
76,286,806
615,064,595
(266,351,517)
348,713,078
84,256,291
2,034,432
39,771,667
48,437,084
(77,000)
88,131,751
651,935,348
(266,351,517)
385,583,831
36,870,753
2,002,848
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
62,307,206
(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
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
151
City of Santa Clarita
Assessed Values - Taxable Property
Last Ten Fiscal Years
FISCAL YEAR
CATEGORY 12-13 11-12 10-11 09-10 08-09
Residential
Commercial
Industrial
Irrigated
Dry farm
Recreational
Institutional
Government
Miscellaneous
Vacant land
SBE Nonunitary
Possessory Int.
Unsecured
Unknown
TOTALS
18,000
16,000
14,000
12,000
10,000
8,000
C
6,000
4,000
2,000
$ 14,971,655,728 $ 15,212,586,674 $ 15,239,936,469 $ 15,093,632,637 $ 16,491,425,500
21794,405,083
2,74852471727
2,820,2965027
25729,669,423
2,54159085257
11413,623,056
1,455,126,754
1,463,6965151
154511053,867
1,420,480,569
2,796,388
35016,072
3,004,749
31630,743
35559,558
104,981,278
1065506,146
121,7915852
121,511,353
11954595165
132,119,758
125, 982, 002
127, 363,481
125, 868, 861
136,418, 924
210,850
206,717
205,173
206,850
2015629
864,299
847,359
841,034
843,038
565,117,297
5335608,937
308,8205538
6361182,476
66455625300
3,254,751
35254,751
3,573,175
3,573,175
15073,171
125,301,717
131, 534,263
136,599, 828
150, 671, 347
158, 723, 783
870,669,758
8475579,230
887,3725458
9441836,476
87150395834
$201984,999,963 $21,168,496,632 $21,113,5005935 $2152611680,246 $22,40858521690
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
04.05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12.13
Fiscal Year
152
tesidential
:ommercial
ndustrial
tacant Land
01 Others
FISCAL YEAR
07-08 06-07 05-06 04-05 03-04
$ 163165,9197271
2308175767763
1,293,080, 539
3,489,768
11438683032
130, 907,129
197,676
$ 1339623275,972
1383633402797
1314834692489
29,374,674
49,088,244
90,435,287
94,705,673
194,922
$ 1256976402999
1758878353810
98033953598
28,272,540
48,512,253
94,916,719
91,312,643
190,000
$ 113097,9877787
1325823897787
833,4557573
4,351,050
45,145,241
84,727,948
80,606,769
$ 10722136343945
1713235853601
8173508597
3,962,743
43,542,990
94,694,674
113,908577
493,814
8103312
7957449
779,859
7643577
6677091
66437923342
656,6607955
554,551,820
44032153418
280,7447871
832433171
1026663005
1331722185
1637683755
4924767597
2393115,623
22276543730
20535267182
20133233600
15373027360
7903596511
73076973804
659,9907996
64135263760
66477603834
-
8375253492
10323037882
3639943610
2975853002
$ 21,493,597,137 $ 18,915,885,493 $ 16,939,401,486 $ 145742,257,875 $ 13,606,868,696
Notes: In 1978 the voters of the State of California passed Proposition 13, which limited taxes to a total
maximum rate of 1 % based upon the assessed value of the property being taxed. Each year, the assessed
value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions,
property is only reassessed as a result of new construction activity or at the time it is sold to a new owner.
At that point, the property is reassessed based upon the added value of the construction or at the purchase
price (market value) or economic value of the property sold. The assessed valuation data shown above
represents the only data currently available with respect to the actual market value of taxable property and
is subject to the limitation just mentioned.
153
City of Santa Clarita
Assessed Value - Use Category Summary
Fiscal Year 2012-13
NET
ASSESSED TAXABLE
CATEGORY PARCELS VALUE PERCENT EXEMPTIONS VALUE PERCENT
Residential
Commercial
Industrial
Irrigated
Recreational
Institutional
Government
Miscellaneous
Vacant land
SBE Nonunitary
Possessory Int.
Unsecured
TOTALS:
4%029
$ 1550255646,090
70.22%
$ 53,990,362
$ 14,971,6551728
71.345%
936
2,9025289,313
13.56%
107,884,230
2,794,405,083
13.316%
710
1,416,311,372
6.62%
2,688,316
1,413,623,056
6.736%
6
25796,388
0.01%
-
25796,388
0.013%
34
1075856,465
0.50%
2,875,187
104,981,278
0.500%
710
3625419,915
1.69%
230,300,157
132,119,758
0.630%
5
212,066
0.001%
1,216
210,850
0.001%
10
864,299
0.004%
-
864,299
0.004%
3,620
5665358,589
2.65%
11241,292
5655117,297
2.693%
(11)
35254,751
0.02%
-
35254,751
0.016%
(2,172)
1265366,565
0.59%
11064,848
1255301,717
0.597%
(6,353)
8845363,545
4.13%
13,693,787
8705669,758
4.149%
46,524 $ 21,398,739,358 100.00% $ 413,739,395 $ 20,98459991963 100.000%
ASSESSED VALUE by USE
CATEGORY
Fiscal Year 2012-13
Industrial All Others
6.62%
9.60%
NET TAXABLE VALUE by USE CATEGOW
Fiscal Year 2012-13
Industrial I
6.74%
Commercial
13.32%
■ All Others
8.60%
I
13.56% Residential ®Residential
70.22% 71.34%
154
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal
Year
GENERAL
LOS
ANGELES
COUNTY
CASTAIC
LAKE
WATER
AGENCY
SCHOOL
DISTRICTS
COUNTY
SANITATION
DISTRICTS
COUNTY
FLOOD
CONTROL
TOTAL
2003-04
1.000000
0.000992
0.066000
0.079461
0.000328
0.000462
1.147243
2004-05
1.000000
0.000923
0.056169
0.064493
0.000321
0.000245
1.122151
2005-06
1.000000
0.000795
0.049327
0.064422
0.000000
0.000049
1.114593
2006-07
1.000000
0.000660
0.040000
0.060360
0.000000
0.000050
1.101070
2007-08
1.000000
0.000000
0.040000
0.074050
0.000000
0.000000
1.114050
2008-09
1.000000
0.000000
0.040000
0.077110
0.000000
0.000000
1.117110
2009-10
1.000000
0.000000
0.060750
0.089815
0.000000
0.000000
1.150565
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
2012-13
1.000000
0.000000
0.070600
0.112835
0.000000
0.000000
1.183435
1.200000
1.000000
0.800000
0.600000
0.400000
01f'LDDbDI
0.000000
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2012-13
GENERAL
CASTAIC LAKE
WATER AGENCY
LA COUNTY
FLOOD CONTROL
Source: HdL Coren & Cone, Los Angeles County Assessor 2012-13 Tax Rate Table
155
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies
City General Fund Direct Rates
Agency
RDA Incremental Rate
Total Direct Rate
City Share
Prop. 13
of 1% Total City
plus applicable
0.05780
Roll Year per Prop. 13 Debt Rates Rates
voter -approved debt
Children's Institutional Tuition Fund (400.21)
2012-13 0.122750 0.000000 0.122750
0.00000%
.07183%
0.071837/.--
Agency
2012-13
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
LA County Flood Control Improvement District (030.10)
representative and based upon the direct
Children's Institutional Tuition Fund (400.21)
0.00283
0.00996
and overlapping rates for the largest
Consolidated Fire Protection District of LA Co. (007.30)
0.16340
General Fund tax rates area (TRA) by net
County School Service Fund Newhall (581.06)
0.00801
Newhall School District (581.01)
taxable value. Total Direct Rate is the
County School Service William S. Hart (757.06)
0.00034
0.03740
weighted average of all individual direct
County School Services (400.15)
0.00143
rates applied by the government preparing
Development Center Handicapped Minor Newhall (581.07)
0.00088
Valencia Areawide Landscape T1A S.C.
the statistical section information.
Educational Augmentation Fund Impound (400.01)
0.13380
0.04290
The percentages presented in the columns
Educational Revenue Augmentation Fund (ERAF) (400.00)
0.08260
above do not sum across rows. In 1978
Greater LA Co. Vector Control (061.80)
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)
0.00996
LA County General (001.05)
0.14050
LA County Accum Cap Outlay (001.20)
0.00009
Newhall School District (581.01)
0.08350
Santa Clarita Community College (814.04)
0.03740
Santa Clarita Street Light Maintenance #2 (249.32)
0.02250
Santa Clarita Valley Sanitation Dist. LA Co.
0.02500
Valencia Areawide Landscape T1A 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) 0.01265
Newhall Elementary School District Debt Services 1999 Ser. B (581.53) 0.02674
Newhall Elementary School District Debt Services 1999 Ser. A (581.52) 0.01581
Santa Clarita Community College Debt Services 2001 Ser. 2005 (814.54) 0.00766
Santa Clarita Community College Debt Services 2006 Ser. 2007 (814.55) 0.00924
Santa Clarita Community College Debt Services 2005 Refunding Bonds (81 0.00509
Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52) 0.00345
Santa Clarita Community College Debt Services 2006 Ser. 2012 0.00537
William S. Hart Un.Hsd Debt Services 2008 Ser. B 0.00208
William S. Hart Un.Hsd Debt Services 2008 Ser. C 0.00236
William S. Hart Unified Debt Services 2001 Ser. B (757.52) 0.01717
William S. Hart Unified Debt Services 2008 Ser. A (757.53) 0.00522
Total Tax Rate 0.18344
Source: HdL Coren & Cone, Los Angeles County Assessor 2012/13 Tax Rate Table
156
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 the
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 Fiscal Year and Seven Fiscal Years Ago
OWNER/TAXPAYER
Number
of
Parcels
FISCAL YEAR 2012-13
PERCENT of
TOTAL TOTAL CITY
ASSESSED ASSESSED
VALUE"' VALUE
Valencia Town Center
18
$ 351,546,003
1.68
VTC Business Center
10
138,857,780
0.66
EQR Valencia LLC
218
97,073,823
0.46
Walmart Real Estate Business Tru
11
78,039,507
0.37
Rreef America Reit II Corporation
2
70,987,026
0.34
Time Warner NY Cable LLC
17
71,577,658
0.34
Casden Santa Clarita LLC
25
61,757,458
0.29
DSEA River Oaks LLC
7
56,408,923
0.27
ERP Operating LP
3
55,868,091
0.27
Mann Biomedical Park LLC
1
54,804,930
0.26
Total
312
1,036,921,199
4.94
All Others
19,948,078,764
95.06
Total Assessed Valuation
$20,984,999,963
100.00
NOTE:
(1) Information is not available for fiscal years prior to 2005-2006.
(2) The amounts shown above include assessed value data for both the City
and the Redevelopment Agency.
Source: HdL Coren & Cone, LA County Assessor 2012/13 Combined Tax Rolls
FISCAL YEAR 2005-06111
PERCENT of
Number TOTAL TOTAL CITY
of ASSESSED ASSESSED
OWNERITAXPAYER Parcels VALUE VALUE
Valencia Town Center
30 $
227,588,430
1.33
Newhall Land and Farming Co.
142
124,754,967
0.73
Casden Santa Clarita LLC
25
74,999,960
0.44
CPF Promenade LLC
16
63,386,867
0.37
Princess Cruises Inc.
7
60,186,928
0.35
EQR Valencia LLC
217
54,881,437
0.32
EQR Town Center LLC
3
50,687,860
0.30
Prado Town Center West LLC
8
48,696,944
0.28
Lexington Lion Clarita Limited
Partnership
6
48,643,800
0.28
ESQ Essex Place Financing Ltd.
2
48,610,900
0.28
157
456 802,438,093 4.69
16,309,304,924 95.31
$ 17,111,743,017 100.00
158
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
FISCAL
YEAR
TAXES
LEVIED
COLLECTIONS
PERCENT
COLLECTIONS
COLLECTIONS
IN SUBSEQUENT
YEARS
TOTAL
COLLECTIONS
TO DATE
PERCENT
COLLECTIONS
TO DATE
2003-04
$ 9,2711388
$ 910663213
97.79%
$
$ 91066,213
97.79%
2004-05
1021187983
938783450
97.62%
9,8783450
97.62%
2005-06
112593,852
1132923337
97.40%
202076
11,3123413
97.57%
2006-07
12,8047630
1233172614
96.20%
2,689
1273203303
96.22%
2007-08
1424837825
1337543184
94.96%
322577
1377863761
95.19%
2008-09
1129257285
1133613604
95.27%
162722
1173783326
95.41%
2009-10
14,2027626
1337113940
96.55%
13,7113940
96.55%
2010-11
1421727030
1338293640
97.58%
50,605
1378803246
97.94%
2011-12
1422997999
1339993770
97.90%
49,862
1470493633
98.25%
2012-13
1826347850
1832972746
98.19%
1872973746
98.19%
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
.7
TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS
2003-04 2004.05 2005.06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012.13
FISCALYEAR ■LEVIES
GCOLLECTIONS
•OELINOUENT
AMOUNT
NOTES:
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.
The above figures include secured property taxes only.
Prior to the implementation
of GASB 44
in FY 2006, collections
in subsequent years were not required
to be reported by tax year.
Beginning in
FY 2007, collections in
subsequent years are included.
Source: County of Los Angeles, Department of Auditor -Controller
159
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
GOVERNMENTAL ACTIVITIES
FISCAL CERTIFICATES TAX ALLOCATION CAPITAL
YEAR OF PARTICIPATION (1) (3) LOANS BONDS (2) BONDS (4) LEASES TOTAL
2003.04
$18,335,000
$2,040,000
$6,333,828
$
$
$
$103,275
$26,812,103
2004.05
17,640,000
1,390,000
5082192
23,798
2427512990
2005.06
17,700,000
710,000
5,0292113
12,211
232451,324
2006.07
16,760,000
-
4,3282207
13,785,000
36,401
342909,608
2007.08
15,790,000
151525,000
3,593,734
13,5757000
29,860,000
81850,000
23,676
872217,410
2008.09
14,790,000
151525,000
2,823,907
131330,000
292860,000
81850,000
11,370
852190,277
2009.10
13,760,000
151525,000
2,017,793
13,0757000
292460,000
8,730,000
11624
822569,417
2010.11
12,700,000
15,525,000
1,413,786
12,8051000
2920402000
8,605,000
-
80,0881786
2011.12
11,610,000
15,490,000
1,040,000
12,525,000
-
-
242,417
40,907,417
2012.13
10,485,000
15,430,000
810,000
12,230,000
201,880
39,1561880
NOTES:
(1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of
Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond
proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita
Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance
the design, acquisition, improvement or construction of land, the City Hall Building and certain road
improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease
payments to be made by the City to Financing Authority equal to the principal and interest due on the
principal and interest due on the revenue bonds. At this point in time, the RDA was not active.
-The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation
Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and
the liability for those certificates were removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of
advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were
considered defeased and the liability for those certificates were removed from the long-term liability.
-In November 2001, the Santa Clarita Public Financing Authority issued $3,200,000 in Certificates of
Participation for the acquisition of parkland.
(2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue
Bonds, Series 2007 for the acquisition of right-of-way.
(3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15,525,000 in Certificates of Participation
for the acquisition of open space and parkland.
(4) On June 1, 2008, the Santa Clarita Redevelopment Agency (RDA) issued $29,860,000 in Non -Housing Tax Allocation
Bonds and $8,850,000 in Low/Mod Housing Tax Allocations Bonds to fund certain redevelopment projects within the Newhall
Redevelopment Project area. Upon the dissolution of redevelopment agencies in the State of California effective February 1,
2012, the bonds were transferred to the RDA Successor Agency.
Sources: City of Santa Clarita, Administrative Services Department - Finance Division
500
IMIOT411
300
200
100
Am
J$206
00 $484 $466 $454
$19
$176 $160
$150
03-04 04-05 05-06 06-07 07-08 08-09 09.10 10-11 11-12 12-13
Fiscal Year
161
PERCENTAGE
BUSINESS -TYPE
ACTIVITIES
of
OUTSTANDIN(
TOTAL
TAXABLE
DEBT
DEBT TO
LEASE
PRIMARY
ASSESSED
PER
PERSONAL
PAYABLE
TOTAL
GOVERNMENT
VALUE
CAPITA
INCOME
$ 2,236,624 $
2,236,624
$ 29,048,727
0.23%
176.14
3%
1,919,312
17919,312
26,671,302
0.20%
159.75
3%
1,586,319
17586,319
25,037,643
0.17%
149.56
2%
1,236,869
17236,869
36,146,477
0.21%
205.76
3%
870,149
870,149
88,087,559
0.47%
500.41
6%
485,304
485,304
857675,581
0.40%
483.63
5%
248,304
248,304
82,817,721
0.39%
466.21
5%
-
-
80,088,786
0.38%
454.22
N/A
-
-
40,907,417
0.19%
230.54
N/A
39,156,880
0.16%
191.05
N/A
OUTSTANDING
DEBT PER CAPITA
Last Ten
Fiscal Years
500
IMIOT411
300
200
100
Am
J$206
00 $484 $466 $454
$19
$176 $160
$150
03-04 04-05 05-06 06-07 07-08 08-09 09.10 10-11 11-12 12-13
Fiscal Year
161
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
2003-04
164,916
$ $
20,375,000
$201375,000
0.18%
$ 124
2004-05
166,958
19,030,000
191030,000
0.15%
114
2005-06
167,412
18,410,000
18,410,000
0.14%
110
2006-07
175,676
13,893,228
16,7605000
30,653,228
0.21%
174
2007-08
176,030
13,575,000
31,315,000
447890,000
0.27%
255
2008-09
177,150
13,330,000
30,3155000
43,645,000
0.23%
246
2009-10
177,641
13,075,000
29,2855000
42,360,000
0.22%
238
2010-11
176,320
121805,000
28,2255000
411030,000
0.19%
233
2011-12
177,445
12,525,000
27,1005000
39,625,000
0.19%
223
2012-13
204,951
12,230,000
25,9155000
381145,000
0.16%
186
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
$255 $238 $233
$246 $186
$174 $223
$124 $114 $110
03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Fiscal Year
Source: (1) State of California, Finance Department
162
City of Santa Clarita
Direct and Overlapping Bonded Debt
June 30, 2013
2012-13 Assessed Valuation: $20.985,441.963 Net of Redevelopment Agency
Incremental Value of $349.161,762)
2012-13 Population:
204.951
Percent
City's Share
Total Debt
Applicable
of Debt
06130/2013
To City (1)
06/30/2013
OVERLAPPING TAX AND OVERLAPPING BONDED DEBT:
Los Angeles County Flood Control District
$ 19,770,000
1.944 %
$ 384,329
Santa Clarita Community College District
171,889,695
62.980
108,256,130
William S. Hart Union High School District
394,571,110
62.969
248,457,482
William S. Hart Union High School District - Community Facilities District No. 87-1
1,155,000
100.000
1,155,000
William S. Hart Union High School District - Community Facilities District No. 88-1
2,730,000
100.000
2,730,000
William S. Hart Union High School District - Community Facilities District No. 89-1
310,000
100.000
310,000
William S. Hart Union High School District - Community Facilities District No. 90-1
555,000
100.000
555,000
Los Angeles County Community College and Unified School Districts
14,658,250,000
0.00001
1,466
Castaic Union School District
17,156,776
26.840
4,604,879
Newhall School District
22,990,000
60.389
13,883,431
Newhall School District School Facilities Improvement District No. 2011-1
19,995,858
61.594
12,316,249
Saugus Union School District
43,491,964
73.907
32,143,606
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area t
7,900,000
100.000
7,900,000
Sulphur Springs Union School District
17,265,318
71.471
12,339,695
City of Santa Clarita Open Space and Parkland Assessment District
15,430,000
100.000
15,430,000
City of Santa Clarita Community Facilities District No. 2002-1
16,485,000
100.000
16,485,000
City of Santa Clarita 1915 Act Bonds
900,000
100.000
900,000
Los Angeles County Regional Park and Open Space Assessment District
142,870,000
1.928
2,754,534
Total Overlapping Tax and Assessment Debt
$480,606,801
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
$ 1,729,437,327
1.928 %
$ 33,343,552
Los Angeles County Superintendent of Schools - Certificates of Participation
10,377,239
1.928
200,073
Los Angeles County Sanitation District No. 23 Authority
3,148,824
0.102
3,212
Los Angeles County Sanitation District No. 32 Authority
28,298,240
64.861
18,354,521
Santa Clarita Community College District - Certificates of Participation
19,770,000
62.980
12,451,146
William S. Hart Union High School District - Certificates of Participation
6,000,000
62.969
3,778,140
Castaic Union School District - Certificates of Participation
4,040,000
26.840
1,084,336
Saugus Union School District - Certificates of Participation
28,200,000
73.907
20,841,774
Sulphur Springs Union School District - Certificates of Participation
24,272,492
71.471
17,347,793
Los Angeles Unified School District - Certificates of Participation
395,161,434
0.00001
40
City of Santa Clarita Certificates of Participation
237726,879
100.000
23,726,879 (2)
Total Gross Direct and Overlapping General Fund Debt
$ 131,131,466
Less: Los Angeles County General Fund Obligations supported by landfill revenues
105,883
Total Net Direct and Overlapping General Fund Debt
$ 131,025,583
Total Direct Debt
$ 39,156,879
Gross Overlapping Debt
572,581,388
Total Gross Direct and Overlapping Debt
611,738,267 (3)
Net Total Overlapping Debt
611,632,384
Net Combined Total Debt
$ 650,789,263
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the City
(2) Includes $201,879 Capital Lease obligations and $810,000 CDBG Loan.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation
bonds and non -bonded capital lease obligations.
Ratios to Adjusted Assessed Valuation
Per Capita
Total Direct Debt ($387145,000)
0.18%
$2,344.98
Gross Combined Total Debt
3.08%
714.59
Net Combined Total Debt
3.08%
$3,175.34
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6130/2013:
$0
Source: Muniservices
163
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds _
FISCAL YEAR
12.13 11.12 10-11 09.10 08-09
$ 24,6981048,493 $ 21 ,399jl 81,358 $ 21,526,384,928 $ 21,457,647,247 $ 211600,880,848
25% 25% 25% 25% 25%
62174,512,123
15%
926,1761818
5,3491795,340
15%
802,4691301
5,381,5961232
15%
807,239,435
53364,4112812
15%
804,661,772
5,4002220,212
15%
8102033,032
Legal debt margin $ 926,176,818 $ 802,469,301 $ 807,239,435 $ 804,661,772 $ 810,033,032
Total debt applicable to the limit
as a percentage of debt limi 0% 0% 0% 0% 0%
Section 43605 of the Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when assessed valuation
was based upon 25% market value. Effective with 1981-82 fiscal year, each parcel is now
assessed at 100% of market value (as of the most recent change in ownership for that parcel).
The computations shown above reflect a conversion of assessed valuation data for each fiscal year
from current full valuation perspective to the 25% level that was in effect at the time the legal
debt margin was enacted by the State of California for local governments located within the State.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
FISCAL YEAR
07.08 06-07
05-06
04.05
03.04
15%
815,2837182
719,142,429
643,5141506
$ 21,740,884,855 $ 19,177,131,442
$ 17,160,3861817
$ 141937,115,985
$ 13,795,632501
25% 25%
25%
25%
25%
5,43512211214 41794,282,861
4,290,0961704
317341278,996
3,448,908,125
15%
15%
15%
15%
15%
815,2837182
719,142,429
643,5141506
560,141,849
517,336,219
$ 815,283,182 $ 719,142,429 $ 643,514,506 $ 560,141,849 $ 517,336,219
0% 0% 0% 0% 0%
1,000
900
800
700
^y
600
p
500
400
C
300
200
100
LEGAL DEBT MARGIN
03-04 N9 5 05-06 06-07 07-M 08-09 09-10 10-11 11-12 12-13
FISCAL YEAR
165
City of Santa Clarita
Pledged Revenue Coverage
Last Ten Fiscal Years
TRANSIT
LESS NET
Fiscal TRANSIT OPERATING AVAILABLE DEBT SERVICE
Year REVENUES (1) EXPENSES (2) REVENUES Principal Interest COVERAGE
2003-04
$ 24,1715361
$ 13,693,876
$ 10,4775485
2004-05
35,6775983
14,037,109
21,640,874
2005-06
22,0415436
17,242,035
4,7995401
2006-07
19,4685288
191033,240
4355048
2007-08
24,8885921
22,204,777
2,6845144
2008-09
26,6125418
23,014,324
3,5985094
2009-10
21,1795438
23,525,855
(2,3465417)
2010-11
32,5075582
241270,533
8,2375048
2011-12
26,1335433
25,175,688
9575745
2012-13
29,4205486
25,901,822
3,5185664
$ 852,372 $
135,063
4.09%
317,312
102,395
1.18%
332,993
86,230
1.90%
349,449
69,388
2.15%
366,720
60,298
1.72%
384,846
42,172
1.60%
236,999
23,149
1.23%
248,304
11,844
0.80%
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
166
SANTACLARITA
PERCENTAGE
COUNTY
PERCENTAGE PERSONAL
PERSONAL
INEMPLOYMEN"
YEAR POPULATION
(1)
$ 338,209,805 6.50%
INCREASE
POPULATION
(1)
INCREASE INCOME
(2)
97816,153
INCOME
(2)
35,188
RATE
(3)
2006
2004
163,396
1.02%
97806,944
0.51%
$
33,179
$ 338,209,805 6.50%
2005
165,431
1.25%
97816,153
0.09%
35,188
357,193,633 5.30%
2006
165,243
-0.11%
97798,609
-0.18%
36,917
385,7322651 4.20%
2007
173,979
5.29%
97780,808
-0.18%
39,066
402,10708 2.70%
2008
174,355
0.22%
9,7857474
0.05%
44,727
567,707,000 4.70%
2009
175,103
0.43%
91801,096
0.16%
43,119
550,832,000 7.70%
2010
176,056
0.54%
91822,121
0.21%
43,999
565,365,000 7.70%
2011
176,320
0.15%
91818,605
-0.04%
44,423
575,044,998 7.60%
2012
177,445
0.64%
9,884,632
0.67%
N/A
N/A 6.90%
2013
204,951
15.50%
9,958,091
0.74%
N/A
N/A 6.60%
17.00%
15.00%
13.00%
11.00%
9.00%
7.00%
5.00%
3.00%
1.00%
-1.00%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
YEAR
Sources: (1) State of California, Finance Department, as of 1/1/2013
(2) U.S. Department of Commerce, Bureau of Economic Analysis (BEA)
Personal Income and Unemployment rates are for the regional area, Los Angeles. The City of
Santa Clarita's related information is not available. Information lags two years.
(3) State of California, Department of Employment Development (EDD)
167
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
2013•
Largest firms" 12,261 70.62%
All Others 5,100 29.38%
Grand total 17,361 100.00%
* As of February 2013
NOTE: (1) Non-governmental employers
2004
PERCENT
NUMBER of
of TOTAL
EMPLOYER EMPLOYEESEMPLOYMENT
Home Depot 330 14.47%
Robinsons May 310 13.59%
Shield Health Care
310
PERCENT
NUMBER
of
11.40%
Of
TOTAL
EMPLOYER
EMPLOYEES EMPLOYMENT
Six Flag Magic Mountain
41500
25.92%
Princess Cruises
11600
9.22%
Henry Mayo Newhall
7.23%
Memorial Hospital
1,400
8.06%
(formerly Specialty
Lowe's
154
Laboratories)
850
4.90%
The Master's College
800
4.61%
Woodward HRT (formerly
HR Textron)
772
4.45%
Walmart
624
3.59%
Advanced Bionics
600
3.46%
Pharmavite
567
3.27%
Aerospace Dynamics
548
3.16%
Largest firms" 12,261 70.62%
All Others 5,100 29.38%
Grand total 17,361 100.00%
* As of February 2013
NOTE: (1) Non-governmental employers
2004
PERCENT
NUMBER of
of TOTAL
EMPLOYER EMPLOYEESEMPLOYMENT
Home Depot 330 14.47%
Robinsons May 310 13.59%
Shield Health Care
310
13.59%
Costco Wholesale
260
11.40%
Vons Grocery Company
250
10.96%
Target Stores
200
8.77%
Frontier Toyota
165
7.23%
Best Buy
160
7.01%
Lowe's
154
6.75%
Power Ford
142
6.23%
Largest firms ' 25281 100.00%
All Others N/A N/A
Grand total 21281 100.00%
Source: 2013 SCVEDC Economic & Real Estate Outlook Source: 2004 MBIA MuniServices Company
WE
City of Santa Clarita
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
400.00
390.00
380.00
370.00
360.00
350.00
340.00
330.00
320.00
310.00
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Fiscal Year
(1) Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
169
FISCAL
YEAR
Function
12-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
03-04
General government
89.60
84.35
85.75
89.75
95.75
91.75
86.00
96.00
79.00
78.00
Public safety (1)
-
-
-
-
-
-
-
-
-
-
Public works
129.00
126.00
127.00
128.00
135.50
136.50
133.50
115.00
146.00
138.00
Community developme
32.00
30.50
33.00
33.00
36.00
35.00
33.00
36.00
20.00
20.00
Parks and Recreation
108.15
105.90
106.50
110.50
111.50
110.50
108.00
106.00
101.00
99.00
Transit
11.00
13.00
12.00
12.00
14.00
11.00
11.00
8.00
8.00
8.00
Totals
369.75
359.75
364.25
373.25
392.75
384.75
371.50
361.00
354.00
343.00
400.00
390.00
380.00
370.00
360.00
350.00
340.00
330.00
320.00
310.00
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Fiscal Year
(1) Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
169
City of Santa Clarita
Operating Indicators by Function
Last Ten Fiscal Years
NOTE: (1) The City of Santa Clarita contracts Los Angeles County, Sheriff Department for its Police services.
The number of citations issued and money collected are within the City's boundaries.
(2) Number of customers served include those outside of the City boundaries.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
170
FISCAL YEAR
Function
12-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
03-04
Police:
Parking citation issued
5,726
5,521
6,577
5,114
4,126
5,257
4,587
6,042
5,960
5,040
Parking revenue collected
$ 341,607
$ 335,663
$ 323,408
$ 238,478
$ 235,634
$ 288,076
$ 334,927
$ 27,257
$ 10,427
$ 10,324
Public works:
Street resurfacing (miles)
18.0
24.0
24.0
33.8
14.0
15.4
15.4
16.5
12.5
7.5
Parks and Recreation:
Number of recreation classes
2,548
2,106
2,080
2,447
2,284
2,393
2,535
2,357
2,443
2,469
Number of facility rentals (time;
13,000
11,042
10,754
10,239
9,801
9,767
19,645
19,435
17,739
15,005
Transit:
Number of customers served a
3,661,302
3,612,060
3,724,490
3,922,052
4,210,842
3,821,299
3,733,299
3,718,640
3,527,000
3,429,913
NOTE: (1) The City of Santa Clarita contracts Los Angeles County, Sheriff Department for its Police services.
The number of citations issued and money collected are within the City's boundaries.
(2) Number of customers served include those outside of the City boundaries.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
170
City of Santa Clarks
Capital Assets Statistics by Function
Last Ten Fiscal Years
Function
Public works:
Streets (miles)
Street lights 17
Traffic signals (City Jurisdiction)
Traffic signals (Joint Jurisdiction)
Parks and recreation:
Number of parks
Community centers
Transit:
Stations
496
496
496
496
FISCAL
YEAR
496
496
462
462
17,843
15,081
14,963
14,939
14,739
14,429
14,000
13,200
13,000
12,000
12-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
03-04
496
496
496
496
496
496
496
496
462
462
17,843
15,081
14,963
14,939
14,739
14,429
14,000
13,200
13,000
12,000
177
171
170
166
172
176
166
167
165
158
5
6
1
6
5
4
4
5
5
4
29 24 23 20 20 20 19 18 17 16
1 1 1 1 1 1 1 1 - -
4 4 4 4 4 4 4 4 4 4
NOTE: (1) All of the above referred streetlights are/were owned and maintained by Edison Company.
The Highway Safety Lights (HSL) are the streetlights attached to traffic signals (817) and those are
City owned and maintained through a contract with the County. The City took over the streetlights from the
County in 1998 and the City Engineering division established the inventory reports since 2001.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
171
23920 Valenda Boulevard
Suite 300
Santa Clarita, California 91355
santa-clarita.com
City of Santa Clarita
Report to the Honorable Mayor and Members
of the City Council
January 29, 2014
McGladrey
Assurance •Tax • Consulting
McGladrey LLP
McGladrey
January 29, 2014
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, CA
We are pleased to present this report related to our audit of the basic financial statements of the City of
Santa Clarita (the City) as of and for the year ended June 30, 2013. This report summarizes certain
matters required by professional standards to be communicated to you in your oversight responsibility for
the City's financial reporting process.
This report is intended solely for the information and use of the City Council and management and is not
intended to be, and should not be, used by anyone other than these specified parties. It will be our
pleasure to respond to any questions you have about this report. We appreciate the opportunity to
continue to be of service to the City.
Member*fthe RSM Intematlonal network of Independent accnunnng, tax and comuhnN firms.
Contents
Required Communications
Summary of Significant Accounting Estimates
Summary of Recorded Audit Adjustments
Summary of Uncorrected Misstatements
Exhibit A—Letter Communicating Material Weaknesses in Internal Control Over Financial
Reporting
Exhibit B—Significant Written Communication Between Management and Our Firm
Representation Letter
Exhibit C—Summary of Restatements to Fund Balance and Net Position for the Year
Ended June 30, 2012
1-3
4-5
Nu
Required Communications
Generally accepted auditing standards (AU -C 260, The Auditor's Communication With Those Charged
With Governance) require the auditor to promote effective two-way communication between the auditor
and those charged with governance. Consistent with this requirement, the following summarizes our
responsibilities regarding the basic financial statement audit as well as observations arising from our audit
that are significant and relevant to your responsibility to oversee the financial reporting process.
um
Comments
Our Responsibilities With Our responsibilities under auditing standards generally accepted in
Regard to the Financial the United States of America and Government Auditing Standards,
Statement Audit issued by the Comptroller General of the United States, have been
described to you in our arrangement letter dated August 30, 2013.
Overview of the Planned We have issued a separate communication regarding the planned
Scope and Timing of the scope and timing of our audit and have discussed with you our
Financial Statement Audit identification of, and planned audit response to, significant risks of
material misstatement.
Accounting Policies and Preferability of Accounting Policies and Practices
Practices Under generally accepted accounting principles, in certain
circumstances, management may select among alternative
accounting practices. In our view, in such circumstances,
management has selected the preferable accounting practice.
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of
the accounting policies used by the City. Following is a description of
significant accounting policies or their application that were either
initially selected or changed during the year.
For the period ended June 30, 2013, the City adopted
Governmental Accounting Standards Board (GASB)
Statement No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre -November 30, 1989
FASB and AICPA Pronouncements, GASB Statement No. 63,
Financial Reporting of Deferred Outflows of Resources,
Deferred Inflows of Resources, and Net Position; and GASB
Statement No. 65, Items Previously Reported as Assets and
Liabilities.
The implementation of these GASB Statements impacted
certain terminology used, and restated the net position at
June 30, 2012 in the governmental activities and the RDA
Successor Agency Trust by $1,425,731 and $1,198,052,
respectively, for the write-off of long-term debt issuance
costs.
Significant or Unusual Transactions
We did not identify any significant or unusual transactions or
significant accounting policies in controversial or emerging areas for
which there is a lack of authoritative guidance or consensus.
Area Comments
Accounting Policies and Management's Judgments and Accounting Estimates
Practices (Continued) Summary information about the process used by management in
formulating particularly sensitive accounting estimates and about our
conclusions regarding the reasonableness of those estimates is in the
attached Summary of Significant Accounting Estimates.
Audit Adjustments Audit adjustments proposed by us and recorded by the City are
included in the attached Summary of Recorded Audit Adjustments.
Uncorrected Misstatements Uncorrected misstatements are summarized in the attached Summary
of Uncorrected Misstatements.
Disagreements With We encountered no disagreements with management over the
Management application of significant accounting principles, the basis for
management's judgments on any significant matters, the scope of the
audit, or significant disclosures to be included in the basic financial
statements.
Consultations With Other Other than communications with the prior auditor related to proposed
Accountants restatement of previous years' financial statement balances, we are
not aware of any consultations management had with other
accountants about accounting or auditing matters
Significant Issues Following is a description of significant issues arising from the audit
Discussed With that were discussed with management:
Management
• At June 30, 2013, the Transit Fund has a zero cash balance
and has temporarily borrowed $1,738,468 from the General
Fund. This is due to a $3,788,590 receivable for reimbursable
expenditures, which were incurred between March and June
2013; however, reimbursement was not received until July
2013.
In accordance with GASB Statement No. 34, Financial
Statements—and Management's Discussion and Analysis—
for State and Local Governments, the City has reported the
Santa Clarita Watershed and Recreation Conservancy
Authority and the Santa Clarita Public Television Authority as
agency funds in the fiduciary fund statements because the
City holds the assets of these agencies in a trustee or agency
capacity and the assets cannot be used to support the City's
own programs.
• Restatements to
the fund balances and net position
of various
funds as of June
30, 2012 were discussed
with and
approved
by management.
These are listed in more
detail in Exhibit C.
Significant Difficulties We did not encounter any significant difficulties in dealing with
Encountered in Performing management during the audit.
the Audit
Area
Comments
Letter Communicating We have separately communicated the material weaknesses in
Material Weaknesses in internal control over financial reporting identified during our audit of
Internal Control Over the basic financial statements and major awards, as required by the
Financial Reporting Government Auditing Standards and Office of Management and
Budget Circular A-133. This communication is attached as Exhibit A.
Significant Written Copies of a significant written communication between our Firm and
Communication Between the management of the City, which is the representation letter
Management and Our Firm provided to us by management, is attached as Exhibit B.
City of Santa Clarita
Summary of Significant Accounting Estimates
Year Ended June 30, 2013
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management's current judgment. The process used by management encompasses its knowledge and
experience about past and current events and certain assumptions about future events. You may wish to
monitor throughout the year the process used to determine and record these accounting estimates. The
following describes the significant accounting estimates reflected in the City's June 30, 2013 basic
financial statements:
Estimate
Accounting Policy
Useful Lives of Long- The estimated useful
Lived Assets lives determined for
assets have the following
ranges:
Allowance for
Uncollectible
Receivables
Site improvements, five to
25 years; buildings and
improvements, five to
50 years; equipment, two
to five years; and
infrastructure, 20 to
60 years.
These assets are
depreciated using the
straight-line method.
Land is a long-lived asset
but is not depreciated.
Construction in progress
is not depreciated until
placed into service.
Accounts receivable are
reported at net realizable
value
Management's
Estimation Process
Management
determines useful lives
based on past
experience, engineer
estimates, and industry
norms. Management
monitors and updates
useful lives on a regular
basis. The impacts of
prominent events or
circumstances may
require management to
assess whether an
impairment of a capital
asset has occurred.
A capital asset is
considered impaired if
both the decline in the
service utility of the
capital asset is large in
magnitude, and the
event or change in
circumstance is outside
the normal life cycle of
the capital asset.
Management has
estimated the allowance
for uncollectible
receivables based on
historical experience,
evaluating creditor's
ability to pay and aging
of receivables.
Basis for Our
Conclusions on
Reasonableness of
Estimate
We have tested the
reasonableness of
information underlying
management's
estimation on the useful
lives of long-lived
assets. Based on our
procedures, we
concluded that assigned
useful lives of capital
assets are reasonable.
We have tested the
reasonableness of the
allowance for
uncollectible receivables
through analytical
procedures. Based on
our procedures, we
concluded that
estimations for
allowance for
uncollectible receivables
are reasonable.
Estimate
Franchise Tax
Receivable
Accounting Policy
Certain franchise tax
receivables are estimated
for the portion that is
attributed and earned
during the fiscal year.
Management's
Estimation Process
Management reviews
historical information
and determines the
estimate based on the
average amounts
received for the three
previous calendar
years.
Basis for Our
Conclusions on
Reasonableness of
Estimate
We have tested the
reasonableness of the
underlying information
for developing the
estimate. Based on our
procedures, we
concluded that the
estimate was
reasonable.
City of Santa Clarita
Summary of Recorded Audit Adjustments
Year Ended June 30, 2013
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
06/30/2013
ALLOW UNCOLLECTABLE ACCTS
330,770.00
Number
Date
Name
AJE #2
Account No
Debit
Credit
AJE
#1
06/30/2013
Interest Payable
Allowance for Advances to Successor Agency
550 -SETUP 550
06/30/2013
ALLOW UNCOLLECTABLE ACCTS
330,770.00
06/30/2013
AJE
#1
06/30/2013
Interest Payable
AJE #2
551 -SETUP 551
ADVANCES TO OTHER FUNDS
99,570.00
5,319,886.00
AJE
#1
06/30/2013
Bond Discount
7,013,892.00
550-SETUPI 550
146,090.00
100-100-1051.003
AJE
#1
06/30/2013
Bond Discount
550-SETUPI 550
306
71834.00
AJE
#1
06/30/2013
LT LOANS PAY -RDA
NON-HSNG
550-550-2121.012 550
5,476,016.00
28,6051000.00
AJE
#1
06/30/2013
LT LOANS PAY -RDA
NON-HSNG
550-550-2121.012 550
450,000.00
AJE
#1
06/30/2013
FUND BALANCE
550-550-3021.001 550
28,605,000.00
AJE
#1
06/30/2013
FUND BALANCE
550-550-3021.001 550
334,487.00
AJE
#1
06/30/2013
FUND BALANCE
550-550-3021.001 550
146,090.00
AJE
#1
06/30/2013
LT LOANS PAY -RDA
HSNG
551-551-2121.012 551
8,480,000.00
AJE
#1
06/30/2013
LT LOANS PAY -RDA
HSNG
551-551-2121.012 551
135,000.00
AJE
#1
06/30/2013
FUND BALANCE
551-551-3021.001 551
8,480,000.00
AJE
#1
06/30/2013
FUND BALANCE
551-551-3021.001 551
100,689.00
AJE
#1
06/30/2013
AMOUNT TO BE PROVIDED
902-902-1151.001 902
36,5001000.00
AJE
#1
06/30/2013
LT LOANS PAY -RDA
NON-HSNG
902-902-2121.012 902
287155,000.00
AJE
#1
06/30/2013
LT LOANS PAY -RDA
HSNG
902-902-2121.013 902
8,3451000.00
AJE
#1
06/30/2013
PRINCIPAL
550-19102-5301.001 550
450,000.00
AJE
#1
06/30/2013
INTEREST
550-19102-5301.002 550
330,770.00
AJE
#1
06/30/2013
INTEREST
550-19102-5301.002 550
334,487.00
AJE
#1
06/30/2013
INTEREST
550-19102-5301.002 550
7,834.00
AJE
#1
06/30/2013
PRINCIPAL
551-19107-5301.001 551
1352000.00
AJE
#1
06/30/2013
INTEREST
551-19107-5301.002 551
99,570.00
AJE
#1
06/30/2013
INTEREST
551-19107-5301.002 551
100,689.00
(1)To remove the RDA LTD from fund
902 and record in fund 550 in accordance with the full accrual
method of accounting and correct opening fund balance (2) To
correct the principal payments during the year, reducing the LTD
and removing principal expense (3) to record the PY interest
payable and CY interest payable in the funds (4) to record the bond
discount and amortize it for the current year.
AJE #2
06/30/2013
Advances to Successor Agency
AJE #2
06/30/2013
Advance to Successor Agency
AJE #2
06/30/2013
Allowance for Advances to Successor Agency
AJE #2
06/30/2013
Allowance for Advances to Successor Agency
AJE #2
06/30/2013
ALLOW UNCOLLECTABLE ACCTS
AJE #2
06/30/2013
ADVANCES TO OTHER FUNDS
AJE #2
06/30/2013
ALLOW UNCOLLECTABLE ACCTS
AJE #2
06/30/2013
ADVANCES TO OTHER FUNDS
SETUP 100
7,884,071.00
SETUP 306
5,4761016.00
SETUPI 100
7,0131892.00
SETUPI 306
5,319,886.00
100-100-1024.008100
7,013,892.00
100-100-1051.003
100
7,8841071.00
306-306-1024.008
306
5,319,886.00
306-306-1051.003
306
5,476,016.00
To net the advances between the
City and the former redevelopment agency and the allowance for
doubtful accounts. For presentation purposes the advances, net
will be shown as a loan receivable by the City and a LT liability
by the Successor Agency Fund.
02/07/2014
10:09 AM Page 1
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-1
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit Credit
AJE #3
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
AJE #3
06/30/2013
CASH DEPOSIT-OPEB
Number
Date
Name
Account No
Debit Credit
AJE #3
06/30/2013
FAIR VALUE ADJUST OTHERS
104-104-1014.002
104
57,647.00
AJE #3
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
19,8001875.00
AJE #3
06/30/2013
FUND BALANCE
104-104-3021.001
104
19,7431228.00
To correct the posting of the OPEB
contribution from 2012.
AJE #4
06/30/2013
OPEB Asset
SETUP 901
6,2231930.00
AJE #4
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
6,223,930.00
To record the OPEB asset on the GL
as of 6/30/13.
AJE #7
06/30/2013
SALES & USE TAXES RECEIVA
100-100-1021.002
100
300,548.00
AJE #7
06/30/2013
DEFERRED REVENUE
100-100-2051.001
100
3003548.00
To record the September true -up in
(balance portion) which is applicable to the 4th
quarter of FY 13.
AJE #8
06/30/2013
Accrued LTD Interest Payable
SETUPI 901
496,960.00
AJE #8
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
496,960.00
To record the current year accrued
interest amount for City LTD.
AJE #9
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
154,641.00
AJE #9
06/30/2013
LTD Discounts
901-901-1161.002
901
240,921.00
AJE #9
06/30/2013
LTD Premiums
901-901-2131.003
901
86,280.00
To record the discounts and
premiums for debt issuances in the General LTD fund.
AJE#10
06/30/2013
FAIR VALUE ADJUST OTHERS
100-100-1014.002
100
57,647.00
AJE#10
06/30/2013
FAIR VALUE ADJUST OTHERS
100-100-1014.002
100
61134.00
AJE#10
06/30/2013
FUND BALANCE
100-100-3021.001
100
81998.00
AJE#10
06/30/2013
UNREALIZED GAIN/LOSS INV
100-100-4305.001
100
57,647.00
AJE#10
06/30/2013
UNREALIZED GAIN/LOSS INV
100-100-4305.001
100
6,134.00
AJE#10
06/30/2013
PROFESSIONAL SERVICES
100-11000-5161.002 100
81998.00
To correct the cash postings from
CJE#9 for the double -posting of $57,647 reversal and the
back -wards entry of $3,067. Also, to remove the $8,998 from
CJE#9 which was paid with Trust funds not pooled cash.
AJE#11
06/30/2013
B&T CREDITS
300-300-2141.002
300
14,954,351.00
AJE#11
06/30/2013
FUND BALANCE
300-300-3021.001
300
14,9541351.00
AJE#11
06/30/2013
B&T CREDITS
301-301-2141.002
301
4,2311737.00
02/07/2014
10:09 AM Page 2
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-2
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
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EK2
Reviewed by
Partner
A&A
01/28/20'
4,231,737.00
06/30/2013
AJE#11
Number
Date
Name
Account No
300
Debit
Credit
AJE#11
06/30/2013
FUND BALANCE
301-301-3021.001
301
5,156,328.00
4,231,737.00
06/30/2013
AJE#11
06/30/2013
B&T CREDITS
303-303-2141.002
303
15,8371646.00
06/30/2013
FUND BALANCE
AJE#11
06/30/2013
FUND BALANCE
303-303-3021.001
303
06/30/2013
15,837,646.00
721-721-1001.001
721
To remove the PY B&T credit
AJE#14
06/30/2013
ADVANCES TO OTHER FUNDS
721-721-1051.003
721
935,620.00
balance from the fund level statements as they do not required the
06/30/2013
FUND BALANCE
721-721-3021.001
721
5,1561328.00
use of current financial resources.
06/30/2013
FUND BALANCE
721-721-3021.001
721
AJE#12
06/30/2013
B&T Credit Debt Service Expense
300 -SETUP 300
SETUP INSURANCE ASSI1
137944,197.00
AJE#12
06/30/2013
B&T Credit Debt Service Expense
301 -SETUP 301
92,491.00
the Self -Insurance that have been transfered
AJE#12
06/30/2013
B&T Credit Debt Service Expense
303 -SETUP 303
331,731.00
over prior fiscal years. Also, to move the advances to the B&T
AJE#12
06/30/2013
B&T CREDITS
300-300-2141.002
300
Fund but was from
13,944,197.00
AJE#12
06/30/2013
B&T CREDITS
301-301-2141.002
301
92,491.00
AJE#15
AJE#12
06/30/2013
B&T CREDITS
303-303-2141.002
303
32,925,650.00
331,731.00
06/30/2013
To remove the CY activity related
to the redemption of credits which were used to pay for CY
developer fees in lieu of cash. The client already recorded the
revenue, however since we need to reduce the government -wide
liability, we need to record principal expense (MG will consider
this a LTD similar to a line of credit)
AJE#13
AJE#13
06/30/2013
06/30/2013
Issuance of B&T Credits SETUP2 300
B&T CREDITS 300-300-2141.002
To remove the entries related to
the CY contributions of infrastructure and issuance of district
credit from the fund.
300
12,270,335.00
12,270,335.00
AJE#14
06/30/2013
CASH CHECKING ACCOUNT
100-100-1001.001
100
5,156,328.00
AJE#14
06/30/2013
ADVANCES TO OTHER FUNDS
100-100-1051.003
100
935,620.00
AJE#14
06/30/2013
FUND BALANCE
100-100-3021.001
100
935,620.00
AJE#14
06/30/2013
CASH CHECKING ACCOUNT
721-721-1001.001
721
5,156,328.00
AJE#14
06/30/2013
ADVANCES TO OTHER FUNDS
721-721-1051.003
721
935,620.00
AJE#14
06/30/2013
FUND BALANCE
721-721-3021.001
721
5,1561328.00
AJE#14
06/30/2013
FUND BALANCE
721-721-3021.001
721
935,620.00
AJE#14
06/30/2013
Self -Insurance Reserve
SETUP INSURANCE ASSI1
5,156,328.00
To remove the excess reserves in
the Self -Insurance that have been transfered
from the General
Fund
over prior fiscal years. Also, to move the advances to the B&T
fund that were made from the Self -Insurance
Fund but was from
excess funds.
AJE#15
06/30/2013
Bridge and Thoroughfare District Payables
SETUP2 901
32,925,650.00
AJE#15
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
32,9251650.00
02/07/2014
10:09 AM Page 3
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-3
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
B&T district payables in the Long-term debt fund.
Number
Date
Name
Account No
Debit
Credit
To post the ending balance of the
B&T district payables in the Long-term debt fund.
AJE#16
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001 901
185,819.00
AJE#16
06/30/2013
LTD Discounts
901-901-1161.002 901
185,819.00
To record the write-off of
$213,347 of issuance costs in accordance of GASB 65 that were
recorded with LTD discounts. Noted
a variance of $27,528 to
arrive at the correct ending total of $55,102.
AJE#17
06/30/2013
CASH CHECKING ACCOUNT
100-100-1001.001 100
67,478.00
AJE#17
06/30/2013
CASH CHECKING ACCOUNT
721-721-1001.001 721
67,478.00
AJE#17
06/30/2013
TRANSFERS IN FROM GF
721-721-4711.100 721
67,478.00
AJE#17
06/30/2013
TRANSFERS OUT TO SELF INS
100-10019500-5501.721 1C
67,478.00
To unwind the transfer from the
General Fund to the Self -Insurance
Fund to transfer excess funds.
AJE#18
06/30/2013
FUND BALANCE
233-233-3021.001 233
1,310,602.00
AJE#18
06/30/2013
TDA ARTICLE 8 (STREETS)
233-233-4421.002 233
1,310,602.00
To record revenue from that was
recognized in FY 11/12 but was received after the 90 -day
availability period and should have been deferred in FY 11/12.
The revenue would be recognized in
FY 12/13.
CJE #1
06/30/2013
DEPOSITS -MISCELLANEOUS
100-100-1061.003 100
200.00
CJE #1
06/30/2013
DEPOSIT -LA REG WATER QLTY
356-356-1061.004 356
417,042.00
CJE #1
06/30/2013
INTEREST -OTHER INVESTMENT
356-356-4303.001 356
42.00
CJE #1
06/30/2013
DEPOSITS -MISCELLANEOUS
358-358-1061.003 358
3,000.00
CJE #1
06/30/2013
LAND
900-900-1111.001 900
21000.00
CJE #1
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001 900
21000.00
CJE #1
06/30/2013
TELEPHONE UTILITY
100-12201-5131.003 100
200.00
CJE #1
06/30/2013
CONTRACTUAL SERVICES
356-14600-5161.001 356
417,000.00
CJE #1
06/30/2013
CONTRACTUAL SERVICES
358-12592-5161.001 358
1,000.00
CJE #1
06/30/2013
LAND
358-12592-5201.004 358
2,000.00
Expense escrow balance to LA
Regional Water Quality Board deposited in May 2012. Expense 2005
deposit of $200 forfeited to Unicom Communications for Verizon
security deposit. Expense OSPD deposits made in 2008 - $1,000
for Robin's Nest RV Park forfeited; $2,000 to Lawyer's Title for
Soledad Canyon purchase. Add Deposits to GFAAG.
CJE #2 06/30/2013 A/R MISC
CJE #2 06/30/2013 ALLOW UNCOLLECTABLE ACCTS
02/07/2014
10:09 AM
356-356-1024.004 356
356-356-1024.008 356 205,143.00
205,143.00
Page 4
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-4
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
Number
Date
Name
Account No
Debit
Credit
Write-off Stormwater Utility Fees
for agencies > 120 days.
CJE #3
06/30/2013
ALLOW UNCOLLECTABLE ACCTS
356-356-1024.008
356
71,800.00
CJE #3
06/30/2013
STORMWATER UTLTY USER FEE
356-356-4531.016
356
71,800.00
Adjust allowance for doubtful
accounts for Stormwater Fund. Stormwater utility fees of
$205,144 were written off requiring adjustment of the allowance.
CJE #4
06/30/2013
DUE FROM OTHER GOVT
260-260-1031.005
260
109,050.00
CJE #4
06/30/2013
DUE FROM OTHER GOVT
260-260-1031.005
260
731,102.00
CJE #4
06/30/2013
DEFERRED REVENUE
260-260-2051.001
260
109,050.00
CJE #4
06/30/2013
DEFERRED REVENUE
260-260-2051.001
260
7313102.00
To accrue 10006 and S1003
retention. Defer revenue.
CJE #5
06/30/2013
Due from State
230-230-1031.002
230
10,000.00
CJE #5
06/30/2013
Due from State
230-230-1031.002
230
134,229.00
CJE #5
06/30/2013
Due from State
230-230-1031.002
230
61,240.00
CJE #5
06/30/2013
Due from State
230-230-1031.002
230
43,663.00
CJE #5
06/30/2013
Due from State
230-230-1031.002
230
86,284.00
CJE #5
06/30/2013
2107.5 GAS TAX
230-230-4411.001
230
10,000.00
CJE #5
06/30/2013
2106 GAS TAX
230-230-4411.002
230
43,663.00
CJE #5
06/30/2013
2107 GAS TAX
230-230-4411.003
230
86,284.00
CJE #5
06/30/2013
2105 GAS TAX
230-230-4411.004
230
61,240.00
CJE #5
06/30/2013
7360 GAS TAX (NEW PROP 42
230-230-4411.007
230
134,229.00
Accrue July Gas Tax Payment for
6/24/13-7/23/13. Although the dates
listed on the remittance
advice are July, the payment is for fiscal year 2013. Payment
should be accrued to prior year.
CJE #6
06/30/2013
DEFERRED REVENUE
233-233-2051.001
233
1,862,342.00
CJE #6
06/30/2013
TDA ARTICLE 8 (STREETS)
233-233-4421.002
233
1,862,342.00
Reverse JE 108133. There are no
restrictions on how much money can
be spent in a year, revenue
should be recognized; not deferred.
The City is allowed to spend
the total funds claimed and received.
CJE #7
06/30/2013
DUE FROM FEDERAL GOVT
100-100-1031.003
100
250.00
CJE #7
06/30/2013
DUE FROM FEDERAL GOVT
100-100-1031.003
100
716.00
CJE #7
06/30/2013
DUE FROM FEDERAL GOVT
100-100-1031.003
100
11025.00
CJE #7
06/30/2013
MISCELLANEOUS REVENUES
100-100-4621.001
100
250.00
02/07/2014
10:09 AM
Page 5
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-5
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
716.00
WE #7
Number
Date
Name
Account No
Debit
Credit
CJE #7
06/30/2013
MISCELLANEOUS REVENUES
100-100-4621.001
100
716.00
WE #7
06/30/2013
MISCELLANEOUS REVENUES
100-100-4621.001
100
11025.00
WE #7
06/30/2013
DUE FROM FEDERAL GOVT
700-700-1031.003
700
66,348.00
WE #7
06/30/2013
DUE FROM FEDERAL GOVT
700-700-1031.003
700
68,436.00
WE #7
06/30/2013
DUE FROM FEDERAL GOVT
700-700-1031.003
700
78,621.00
WE #7
06/30/2013
CNG FUEL
700-700-4501.005
700
66,348.00
CJE #7
06/30/2013
CNG FUEL
700-700-4501.005
700
68,436.00
WE #7
06/30/2013
CNG FUEL
700-700-4501.005
700
78,621.00
To accrue CNG IRS Rebate for
4/1-6/30/11 and 1/1-6/30/13. 4/1-6/30/11 was not
claimed and
reimbursement has not been received; claim form was re -submitted
9/19/13.1/1-6/30/13 should be accrued. Annual
claim to be
submitted in January 2014.
WE #8
06/30/2013
Allowance for Advances to Successor Agency
SETUPI 100
870,179.00
WE #8
06/30/2013
Allowance for Advances to Successor Agency
SETUPI 306
156,130.00
WE #8
06/30/2013
DEFERRED INT INC -RDA
100-100-2051.002
100
870,179.00
WE #8
06/30/2013
DEFERRED INT INC -RDA
306-306-2051.002
306
156,130.00
Transfer the deferred interest for
RDA advances from deferred revenue to the allowance for doubtful
accounts.
WE #9
06/30/2013
CASH CHECKING ACCOUNT
100-100-1001.001
100
144,444.00
WE #9
06/30/2013
CASH PAYROLL
100-100-1001.002
100
66,694.00
WE #9
06/30/2013
FAIR VALUE ADJUST OTHERS
100-100-1014.002
100
60,717.00
WE #9
06/30/2013
FAIR VALUE ADJUST OTHERS
100-100-1014.002
100
31067.00
WE #9
06/30/2013
FUND BALANCE
100-100-3021.001
100
31067.00
WE #9
06/30/2013
FUND BALANCE
100-100-3021.001
100
77,750.00
WE #9
06/30/2013
FUND BALANCE
100-100-3021.001
100
573.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
100-100-4303.001
100
573.00
WE #9
06/30/2013
UNREALIZED GAIN/LOSS INV
100-100-4305.001
100
60,717.00
WE #9
06/30/2013
PARS Cash
102-102-1012.014
102
23,6041017.00
WE #9
06/30/2013
PARS Cash Liability
102-102-2101.004
102
23,6041017.00
WE #9
06/30/2013
CASH CHECKING ACCOUNT
104-104-1001.001
104
743.00
WE #9
06/30/2013
CASH CHECKING ACCOUNT
104-104-1001.001
104
144,444.00
WE #9
06/30/2013
CASH PAYROLL
104-104-1001.002
104
66,694.00
WE #9
06/30/2013
FAIR VALUE ADJUST OTHERS
104-104-1014.002
104
959,555.00
WE #9
06/30/2013
FAIR VALUE ADJUST OTHERS
104-104-1014.002
104
762.00
WE #9
06/30/2013
FAIR VALUE ADJUST OTHERS
104-104-1014.002
104
60,717.00
WE #9
06/30/2013
FAIR VALUE ADJUST OTHERS
104-104-1014.002
104
3,067.00
WE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
836,751.00
WE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
46,448.00
WE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
45,130.00
WE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
471,769.00
WE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
85,658.00
02/07/2014
10:09 AM
Page 6
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-6
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
22,398.00
CJE #9
Number
Date
Name
Account No
Debit
Credit
CJE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
22,398.00
CJE #9
06/30/2013
CASH DEPOSIT-OPEB
104-104-1015.001
104
2,6791000.00
CJE #9
06/30/2013
INTEREST REC-OTHERS
104-104-1022.001
104
217.00
CJE #9
06/30/2013
ACCOUNTS PAYABLE
104-104-2001.001
104
11075.00
CJE #9
06/30/2013
ACCOUNTS PAYABLE
104-104-2001.001
104
26,064.00
CJE #9
06/30/2013
FUND BALANCE
104-104-3021.001
104
573.00
CJE #9
06/30/2013
FUND BALANCE
104-104-3021.001
104
3,067.00
CJE #9
06/30/2013
FUND BALANCE
104-104-3021.001
104
77,750.00
CJE #9
06/30/2013
FUND BALANCE
104-104-3021.001
104
81998.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
104-104-4303.001
104
836,751.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
104-104-4303.001
104
46,448.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
104-104-4303.001
104
45,130.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
104-104-4303.001
104
743.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
104-104-4303.001
104
217.00
CJE #9
06/30/2013
INTEREST -OTHER INVESTMENT
104-104-4303.001
104
573.00
CJE #9
06/30/2013
UNREALIZED GAIN/LOSS INV
104-104-4305.001
104
959,555.00
CJE #9
06/30/2013
UNREALIZED GAIN/LOSS INV
104-104-4305.001
104
762.00
CJE #9
06/30/2013
UNREALIZED GAIN/LOSS INV
104-104-4305.001
104
57,650.00
CJE #9
06/30/2013
UNREALIZED GAIN/LOSS INV
104-104-4305.001
104
3,067.00
CJE #9
06/30/2013
PERS
104-19003-5011.006
104
26,064.00
CJE #9
06/30/2013
RETIREE MEDICAL
104-19003-5011.009
104
471,769.00
CJE #9
06/30/2013
RETIREE MEDICAL
104-19003-5011.009
104
85,658.00
CJE #9
06/30/2013
RETIREE MEDICAL
104-19003-5011.009
104
2,6791000.00
CJE #9
06/30/2013
PROFESSIONAL SERVICES
104-19003-5161.002 104
13,400.00
CJE #9
06/30/2013
PROFESSIONAL SERVICES
104-19003-5161.002 104
1,075.00
Remove PARS balances from general
ledger. Correct fund balance as of 7/1/12
and reverse all Fy12/13
transactions. Transfer PARS balance to T&A
and non -PARS cash to
General Fund.
CJE#10
06/30/2013
LAND
103-103-1111.001
103
4,574,400.00
CJE#10
06/30/2013
INVEST GEN FIXED ASSETS
103-103-3032.001
103
4,574,400.00
To record purchase of 1,030 acres
in Soledad Canyon. Purchase made with
various funding sources
(OSPD, MRC grant & State of CA -Wildfire
Conservation Board
grant). Title was assigned to SCWRCA.
CJE#11
06/30/2013
ACCOUNTS PAYABLE
100-100-2001.001
100
26,064.00
CJE#11
06/30/2013
PERS Expense
100-19000-5011.006
100
26,064.00
Record accrual of PERS; previously
recorded in error in Fund 104.
CJE#12
06/30/2013
CASH CHECKING ACCOUNT
100-100-1001.001
100
743.00
CJE#12
06/30/2013
INTEREST -OTHER INVESTMENT
100-100-4303.001
100
743.00
02/07/2014
10:09 AM
Page 7
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
Number Date Name
0808.01-7
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
BUSES
CJE#13
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
06/30/2013
ACC. DEPRECIATION - BUSES
CJE#13
Reverse Fund 104 Interest
Allocaiton JE 108362.
CJE#13
06/30/2013
BUSES
CJE#13
06/30/2013
BUSES
CJE#13
06/30/2013
BUSES
CJE#13
06/30/2013
ACC. DEPRECIATION - BUSES
CJE#13
06/30/2013
ACC. DEPRECIATION - BUSES
CJE#13
06/30/2013
ACC. DEPRECIATION - BUSES
CJE#13
06/30/2013
ACC. DEPRECIATION - BUSES
CJE#13
06/30/2013
MISCELLANEOUS REVENUES
CJE#13
06/30/2013
MISCELLANEOUS REVENUES
CJE#13
06/30/2013
DEPRECIATION EXPENSE
CJE#13
06/30/2013
DEPRECIATION EXPENSE
CJE#13
06/30/2013
Loss on the disposal of capital asset
CJE#13
06/30/2013
Loss on the disposal of capital asset
Account No
Debit Credit
700-700-1123.002
06/30/2013
700
2,3351964.00
392
3,6281587.00
700-700-1123.002
700
100,000.00
Construction in Progress
392-392-1111.002
700-700-1123.002
700
CJE#14
77,950.00
Construction in Progress
700-700-1133.002
700
126,483.00
2,3351964.00
CJE#14
700-700-1133.002
Construction In Progress Infrastructure
700
392
16,667.00
700-700-1133.002
CJE#14
700
3,789.00
392-392-1124.001
392
700-700-1133.002
700
26,171.00
06/30/2013
FUND BALANCE
392-392-3021.001
700-700-4621.001
392
700
3,628,587.00
100,000.00
06/30/2013
700-700-4621.001
392-392-3021.001
700
34,475.00
126,483.00
700-12400-5183.001 700
16,667.00
CONSTRUCTION IN PROGRESS
900-900-1111.002
700-12400-5183.001 700
3,628,587.00
31789.00
CJE#14
700-12400-5185.002 700
51,779.00
900-900-1111.002
900
700-12400-5185.002 700
34,475.00
06/30/2013
To correct buses on Transit fixed
asset schedules. Reverse the disposal of six MCI buses; in
contingency fleet as of 6/30/13. Add 4 Ford Elkhard mini buses
acquired from AVTA valued @ $25,000 each and record
depreciation. Remove Bus #357 totaled in accident November
2012. Rec'd settlement from MV Transportation.
CJE#14
06/30/2013
Construction in Progress
392-392-1111.002
392
3,6281587.00
CJE#14
06/30/2013
Construction in Progress
392-392-1111.002
392
3,470,374.00
CJE#14
06/30/2013
Construction in Progress
392-392-1111.002
392
126,483.00
CJE#14
06/30/2013
Construction In Progress Infrastructure
392-392-1111.003
392
156,787.00
CJE#14
06/30/2013
Infrastructure
392-392-1124.001
392
3,313,587.00
CJE#14
06/30/2013
FUND BALANCE
392-392-3021.001
392
3,628,587.00
CJE#14
06/30/2013
FUND BALANCE
392-392-3021.001
392
126,483.00
CJE#14
06/30/2013
CONSTRUCTION IN PROGRESS
900-900-1111.002
900
3,628,587.00
CJE#14
06/30/2013
CONSTRUCTION IN PROGRESS
900-900-1111.002
900
3,4701374.00
CJE#14
06/30/2013
CONSTRUCTION IN PROGRESS
900-900-1111.002
900
126,483.00
CJE#14
06/30/2013
CONSTRUCTION IN PROGRESS
900-900-1111.002
900
31,730.00
CJE#14
06/30/2013
INFRASTRUCTURE-CIP
900-900-1111.003
900
156,787.00
CJE#14
06/30/2013
PAVEMENTS
900-900-1124.001
900
3,313,587.00
CJE#14
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
3,628,587.00
CJE#14
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
126,483.00
CJE#14
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
31.730.00
Correct prior year transfer of
construction in progress from City to Successor Agency. Record
fixed assets in SA; remove CIP transferred from GFAAG; restore
CIP in GFAAG for instrastructure; reclass CIP to Infrastr and
Infrast-CIP. Add 82012 costs to capitalize and remove 82008
02/07/2014
10:09 AM Page 8
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-8
Prepared by 1
Prepared by 2
Prepared by 3
In -Charge
ND40 01/09/2014
Debit
Credit
ND40 01/09/2014
Manager
Reviewed by
Partner
A&A
CC92 01/28/20'
CJE#15
Number
Date
Name
Account No
Debit
Credit
costs not to be capitalized.
CJE#15
06/30/2013
Construction in Progress
392-392-1111.002
392
78,580.00
CJE#15
06/30/2013
Construction in Progress
392-392-1111.002
392
110,310.00
CJE#15
06/30/2013
Construction In Progress Infrastructure
392-392-1111.003
392
102,937.00
CJE#15
06/30/2013
Construction In Progress Infrastructure
392-392-1111.003
392
42,835.00
CJE#15
06/30/2013
Site Improvements
392-392-1121.001
392
110,310.00
CJE#15
06/30/2013
Infrastructure
392-392-1124.001
392
580,413.00
CJE#15
06/30/2013
Site Improvements Accumulated Depreciaiton
392-392-1131.003
392
21206.00
CJE#15
06/30/2013
Infrastructure Accumulated Depreciation
392-392-1134.001
392
113,527.00
CJE#15
06/30/2013
Infrastructure Accumulated Depreciation
392-392-1134.001
392
32,450.00
CJE#15
06/30/2013
FUND BALANCE
392-392-3021.001
392
761,930.00
CJE#15
06/30/2013
FUND BALANCE
392-392-3021.001
392
113,527.00
CJE#15
06/30/2013
FUND BALANCE
392-392-3021.001
392
42,835.00
CJE#15
06/30/2013
FUND BALANCE
392-392-3021.001
392
34,656.00
CJE#15
06/30/2013
INFRASTRUCTURE-CIP
900-900-1111.003
900
77,661.00
CJE#15
06/30/2013
SITE IMPROVEMENT
900-900-1121.001
900
48,453.00
CJE#15
06/30/2013
ACC. DEPR - SITE IMPROV
900-900-1131.003
900
969.00
CJE#15
06/30/2013
ACC. DEPR - PAVEMENT
900-900-1134.001
900
113,527.00
CJE#15
06/30/2013
ACC. DEPR - PAVEMENT
900-900-1134.001
900
143,042.00
CJE#15
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
113,527.00
CJE#15
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
77,661.00
CJE#15
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
48,453.00
CJE#15
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
143,042.00
CJE#15
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
969.00
Correct GFAAG and Successor Agency
capital assets. Capitalize PY costs in GFAAG.
Record accumulated
depreciation; record prior year additions; transfer CIP to site
improvements.
CJE#16
06/30/2013
Land
392-392-1111.001
392
532,878.00
CJE#16
06/30/2013
Contributions from City
392-392-4621.015
392
5323878.00
CJE#16
06/30/2013
LAND
900-900-1111.001
900
532,878.00
CJE#16
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
532,878.00
To transfer portion of 24158
Newhall Avenue from City to Successor Agency.
City retained
portion for Traffic Circle. Costs in GFAAG $763,436
- 69.8%
transferred to Successor Agency in November 2012.
CJE#17
06/30/2013
CASH IN LIEU -CONST IMPROV
100-100-2013.003
100
357,301.00
CJE#17
06/30/2013
FUND BALANCE
100-100-3021.001
100
357,301.00
Correct cash in lieu of
construction - recognize prior year balances not due to the
developer as revenue (prior year adjustment).
02/07/2014
10:09 AM Page 9
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-9
Prepared by 1
Prepared by 2
Prepared by 3
In -Charge
ND40 01/09/2014
Debit
Credit
ND40 01/09/2014
Manager
Reviewed by
Partner
A&A
CC92 01/28/20'
Number
Date
Name
Account No
Debit
Credit
CJE#18
06/30/2013
TREES
900-900-1124.008
900
5,6101236.00
CJE#18
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
5,6101236.00
Remove trees from GFAAG.
CJE#19
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
45,768.00
CJE#19
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
4,825.00
CJE#19
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
40,943.00
CJE#19
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
31806.00
CJE#19
06/30/2013
AMOUNT TO BE PROVIDED
901-901-1151.001
901
614.00
CJE#19
06/30/2013
LEASE PURCHASE OTHERS
901-901-2111.003
901
45,768.00
CJE#19
06/30/2013
LEASE PURCHASE OTHERS
901-901-2111.003
901
41825.00
CJE#19
06/30/2013
LEASE PURCHASE OTHERS
901-901-2111.003
901
40,943.00
CJE#19
06/30/2013
LEASE PURCHASE OTHERS
901-901-2111.003
901
31806.00
CJE#19
06/30/2013
LEASE PURCHASE OTHERS
901-901-2111.003
901
614.00
To correct the capital lease
balance for the additional $4,825 payment that was recorded for
the July payment.
CJE#20
06/30/2013
RIGHTS OF WAY
721-721-1111.004
721
5,0001000.00
CJE#20
06/30/2013
VEHICLES
721-721-1123.001
721
33,509.00
CJE#20
06/30/2013
ACC. DEPR - VEHICLES
721-721-1133.001
721
6,702.00
CJE#20
06/30/2013
ACC. DEPR - VEHICLES
721-721-1133.001
721
22,897.00
CJE#20
06/30/2013
FUND BALANCE
721-721-3021.001
721
5,0101612.00
CJE#20
06/30/2013
RIGHTS OF WAY
723-723-1111.004
723
2,6691393.00
CJE#20
06/30/2013
FUND BALANCE
723-723-3021.001
723
2,6691393.00
CJE#20
06/30/2013
CONSTRUCTION IN PROGRESS
900-900-1111.002
900
31,730.00
CJE#20
06/30/2013
CONSTRUCTION IN PROGRESS
900-900-1111.002
900
31,730.00
CJE#20
06/30/2013
INFRASTRUCTURE-CIP
900-900-1111.003
900
156,787.00
CJE#20
06/30/2013
RIGHTS OF WAY
900-900-1111.004
900
7,6691393.00
CJE#20
06/30/2013
VEHICLES
900-900-1123.001
900
33,509.00
CJE#20
06/30/2013
PAVEMENTS
900-900-1124.001
900
580,413.00
CJE#20
06/30/2013
PAVEMENTS
900-900-1124.001
900
97,843.00
CJE#20
06/30/2013
ACC. DEPR - VEHICLES
900-900-1133.001
900
29,599.00
CJE#20
06/30/2013
ACC. DEPR - PAVEMENT
900-900-1134.001
900
113,527.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
31,730.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
31,730.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
156,787.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
580,413.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
97,843.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
113,527.00
CJE#20
06/30/2013
INVEST GEN FIXED ASSETS
900-900-3032.001
900
7,673,303.00
CJE#20
06/30/2013
DEPRECIATION EXPENSE
721-12001-5183.001 721
61702.00
02/07/2014
10:09 AM
Page 10
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
Number Date Name
0808.01-10
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
306
CJE#21
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
06/30/2013
DEFERRED REVENUE
306-306-2051.001
Account No
To correct CJE #14 and CJE#15.
Also, to transfer capital assets that were posted in the internal
service fund to the GFAAG.
CJE#21
06/30/2013
Deposit Payable
306-306-2010.067
06/30/2013
306
CJE#21
06/30/2013
DEFERRED REVENUE
306-306-2051.001
06/30/20131NFRASTRUCTURE-CIP
306
CJE#21
06/30/2013
DEFERRED REVENUE
306-306-2051.001
06/30/2013
306
CJE#21
06/30/2013
DEFERRED REVENUE
306-306-2051.001
06/30/2013
306
CJE#21
06/30/2013
DEFERRED REVENUE
306-306-2051.001
06/30/2013
306
CJE#21
06/30/2013
DEFERRED REVENUE
306-306-2051.001
06/30/2013
306
CJE#21
06/30/2013
DEFERRED REV -SPECIAL DIST
306-306-2051.006
392-13404-5183.001 392
306
CJE#21
06/30/2013
DEFERRED REV -SPECIAL DIST
306-306-2051.006
29,157.00
306
CJE#21
06/30/2013
LAW ENFORCE FACILITY FEE
306-306-2051.008
306
CJE#21
06/30/2013
LAW ENFORCE FACILITY FEE
306-306-2051.008
90,782.00
306
CJE#21
06/30/2013
FUND BALANCE
306-306-3021.001
306
CJE#21
06/30/2013
FUND BALANCE
306-306-3021.001
306
CJE#21
06/30/2013
FUND BALANCE
306-306-3021.001
306
CJE#21
06/30/2013
Restricted for Sewer Infrastructure
306-306-3023.007
306
CJE#21
06/30/2013
Restricted for Sewer Infrastructure
306-306-3023.007
306
CJE#21
06/30/2013
Restriction for Mikes Tire
306-306-3023.008
306
CJE#21
06/30/2013
Restricted for Williams Homes
306-306-3023.009
306
CJE#21
06/30/2013
Restricted for Caltrans
306-306-3023.010
306
CJE#21
06/30/2013
Restricted for Fire Safety
306-306-3023.011
306
CJE#21
06/30/2013
Restricted for Fire Safety
306-306-3023.011
306
CJE#21
06/30/2013
Restricted for Law Enforecment
306-306-3023.012
306
CJE#21
06/30/2013
Restricted for Law Enforecment
306-306-3023.012
306
CJE#21
06/30/2013
Committed to capital projects
306-306-3023.013
306
CJE#21
06/30/2013
DEVELOPER FEES
306-306-4572.001
306
CJE#21
06/30/2013
DEVELOPER FEES
306-306-4572.001
306
CJE#21
06/30/2013
DEV -LAW ENFORECE FEES
306-306-4572.005
306
CJE#21
06/30/2013
DEV -FIRE DISTRICT FEES
306-306-4572.006
306
To recognize developer fee
revenue. Reclass balances to restricted accounts.
CJE#22
06/30/2013
Construction In Progress Infrastructure
CJE#22
06/30/2013
Site Improvements Accumulated Depreciaiton
CJE#22
06/30/2013
Infrastructure Accumulated Depreciation
CJE#22
06/30/20131NFRASTRUCTURE-CIP
CJE#22
06/30/2013
ACC. DEPR - PAVEMENT
CJE#22
06/30/2013
ACC. DEPR - PAVEMENT
CJE#22
06/30/2013
INVEST GEN FIXED ASSETS
CJE#22
06/30/2013
INVEST GEN FIXED ASSETS
CJE#22
06/30/2013
Depreciation Expense
CJE#22
06/30/2013
Depreciation Expense
CJE#22
06/30/2013
Depreciation Expense
CJE#22
06/30/2013
CONTRACTUAL SERVICES
Debit Credit
134,722.00
7,362.00
499,712.00
35,097.00
358,102.00
3,387.00
451,126.00
266,206.00
104,889.00
7,362.00
499,712.00
556,015.00
35,097.00
134,722.00
7,362.00
10,000.00
388,712.00
101,000.00
3,387.00
451,126.00
266,206.00
104,889.00
358,102.00
7,362.00
499,712.00
104,889.00
451,126.00
392-392-1111.003 392
90,782.00
392-392-1131.003 392
4,412.00
392-392-1134.001 392
77,880.00
900-900-1111.003 900
90,782.00
900-900-1134.001 900
36,341.00
900-900-1134.001 900
112,264.00
900-900-3032.001 900
90,782.00
900-900-3032.001 900
75,923.00
392-13404-5183.001 392
41412.00
392-13404-5183.001 392
29,157.00
392-13404-5183.001 392
48,723.00
392-C2022392-5161.001 3!
90,782.00
02/07/2014
10:09 AM Page 11
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-11
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
124,712.00
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
45,650.00
CJE#25 06/30/2013
CJE#23
Number Date Name Account No Debit Credit
To correct Fy12/13 additions and
depreciation for Infrastructure -Const in Progress for project
C2022 - Newhall Traffic Circle. Addition was posted to GFAAG,
however, portion belongs to SA. Correct depreciation for
Streetscape projects (52004/2005) and SCRRA (132012) based on
corrected 7/1/12 balances.
CJE#23
06/30/2013
SETUP DEFERRED REVENUE
SETUP DEF REV 202
100
124,712.00
CJE#23
06/30/2013
SETUP DEFERRED REVENUE
SETUP DEF REV
259
1,809.00
45,650.00
CJE#25 06/30/2013
CJE#23
06/30/2013
SETUP DEFERRED REVENUE
SETUP DEF REV
259
302,520.00
ACCRUED
CJE#23
06/30/2013
DEFERRED REVENUE
201-201-2051.001
201
4,046.00
CJE#23
06/30/2013
HOME PROGRAM
201-201-4552.003
201
4,046.00
CJE#23
06/30/2013
STPL REVENUE
202-202-4531.022
202
124,712.00
CJE#23
06/30/2013
DEFERRED REVENUE
229-229-2051.001
229
10,416.00
CJE#23
06/30/2013
DEFERRED REVENUE
229-229-2051.001
229
138,992.00
CJE#23
06/30/2013
DEFERRED REVENUE
229-229-2051.001
229
112,733.00
CJE#23
06/30/2013
MISC FEDERAL GRANTS
229-229-4424.009
229
10,416.00
CJE#23
06/30/2013
MISC FEDERAL GRANTS
229-229-4424.009
229
138,992.00
CJE#23
06/30/2013
MISC FEDERAL GRANTS
229-229-4424.009
229
112,733.00
CJE#23
06/30/2013
W IA GRANT
259-259-4441.002
259
302,520.00
CJE#23
06/30/2013
OTS MINI GRANT
259-259-4461.007
259
45,650.00
To record deferred revenue based
on analysis of intergovernmental revenues
not received within 90
days.
CJE#24
06/30/2013
DUE FROM STATE
100-100-1031.002
100
715,000.00
CJE#24
06/30/2013
DUE FROM OTHER FUNDS
100-100-1041.002
100
715,000.00
CJE#24
06/30/2013
Due From State
103-103-1031.002
103
715,000.00
CJE#24
06/30/2013
Due to City Nominn
103-103-2001.001
103
715,000.00
CJE#24
06/30/2013
DUE FROM STATE
259-259-1031.002
259
715,000.00
CJE#24
06/30/2013
DUE TO OTHER FUNDS
259-259-2031.001
259
715,000.00
CJE#24
06/30/2013
MISCELLANEOUS REVENUES
259-259-4621.001
259
715,000.00
CJE#24
06/30/2013
LAND
259-15501-5201.004 259
715,000.00
Correct advance for $715,000
reimbursement from MRCA from grant fund to general fund as GF
advanced the funds for the purchase. Reverse all entries in Fund
259 as MRCA grant was not for the City. Record receivable in GF
from SCWRCA for the advance. Record receivable and payable in
SCW RCA fund.
CJE#25 06/30/2013
ACCRUED
VACATION
100-100-2101.002
100
260,357.00
CJE#25 06/30/2013
ACCRUED
VACATION
203-203-2101.002
203
1,809.00
CJE#25 06/30/2013
ACCRUED
VACATION
230-230-2101.002
230
91756.00
CJE#25 06/30/2013
ACCRUED
VACATION
262-262-2101.002
262
689.00
02/07/2014
10:09 AM
Page 12
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
Number Date Name
0808.01-12
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
300
CJE#25
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
06/30/2013
ACCRUED
VACATION
Account No
CJE#25
06/30/2013
ACCRUED
VACATION
300-300-2101.002
300
CJE#25
06/30/2013
ACCRUED
VACATION
356-356-2101.002
356
CJE#25
06/30/2013
ACCRUED
VACATION
357-357-2101.002
357
CJE#25
06/30/2013
ACCRUED
VACATION
359-359-2101.002
359
CJE#25
06/30/2013
AMOUNT TO
BE PROVIDED
901-901-1151.001
901
CJE#25
06/30/2013
ACCRUED
VACATION
901-901-2101.002
901
CJE#25
06/30/2013
VACATION
PAY
100-11000-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-11301-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-11302-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-11303-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-11303-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-11500-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12000-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12002-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12003-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12100-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12101-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12102-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12200-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12202-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-12300-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-13000-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-13100-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-13200-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14000-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14100-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14200-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14300-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14400-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14501-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14503-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14507-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14601-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-14601-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-15000-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-15100-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-15200-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-15300-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-15400-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
100-15500-5004.001
100
CJE#25
06/30/2013
VACATION
PAY
203-13311-5004.001
203
CJE#25
06/30/2013
VACATION
PAY
230-14504-5004.001
230
CJE#25
06/30/2013
VACATION
PAY
262-15206-5004.001
262
CJE#25
06/30/2013
VACATION
PAY
300-14403-5004.001
300
CJE#25
06/30/2013
VACATION
PAY
356-14600-5004.001
356
CJE#25
06/30/2013
VACATION
PAY
357-12500-5004.001
357
CJE#25
06/30/2013
VACATION
PAY
359-12593-5004.001
359
02/07/2014
10:09 AM
Debit
382.00
7,860.00
4,629.00
335.00
285,817.00
Credit
285,817.00
11,868.00
4,899.00
692.00
2,498.00
6,392.00
3,567.00
6,653.00
1,291.00
1,010.00
9,969.00
1,802.00
448.00
9,999.00
801.00
1,764.00
3,331.00
19,330.00
3,706.00
5,169.00
17,651.00
23,523.00
15,169.00
11,335.00
551.00
2,053.00
3,732.00
7,109.00
1,127.00
7,339.00
22,004.00
23,653.00
14,111.00
6,360.00
9,451.00
1,809.00
9,756.00
689.00
382.00
7,860.00
4,629.00
335.00
Page 13
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-13
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
234-234-4461.003
234
Number
Date
Name
Account No
Debit
Credit
To remove compensated absences
CJE#28
06/30/2013
SUPPL LAW ENF GR (COPS)
234-234-4461.003
234
that have been recorded at the fund level.
22,344.00
CJE#28
CJE#26
06/30/2013
DEFERRED REVENUE
306-306-2051.001
306
5,3191886.00
CJE#26
06/30/2013
FUND BALANCE
306-306-3021.001
306
238-238-3021.001
5,3191886.00
238
To adjust JE 108191 to record the
70,962.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
allowance for doubtful accounts for the RDA
advances which offset
2,424.00
CJE#28
fund balance in Developer Fees (Fund 306).
The advances did not
259-259-2051.001
259
505.00
pass through net income and were deferred,
and should offset the
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
deferred revenues.
51600.00
CJE#27
06/30/2013
FLOODWAY STUDIES
202-202-4531.002
202
124,712.00
51171.00
CJE#27
06/30/2013
FLOODWAY STUDIES
202-202-4531.002202
06/30/2013
DEFERRED REVENUE
1243712.00
259
To correct deferred grant revenues
CJE#28
CJE#28
06/30/2013
DEFERRED REVENUE
234-234-2051.001
234
22,344.00
CJE#28
06/30/2013
SUPPL LAW ENF GR (COPS)
234-234-4461.003
234
22,344.00
CJE#28
06/30/2013
DEFERRED REVENUE
238-238-2051.001
238
70,962.00
CJE#28
06/30/2013
FUND BALANCE
238-238-3021.001
238
70,962.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
2,424.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
505.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
51600.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
51171.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
750.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
181,839.00
CJE#28
06/30/2013
DEFERRED REVENUE
259-259-2051.001
259
119,817.00
CJE#28
06/30/2013
FUND BALANCE
259-259-3021.001
259
505.00
CJE#28
06/30/2013
FUND BALANCE
259-259-3021.001
259
181,839.00
CJE#28
06/30/2013
FUND BALANCE
259-259-3021.001
259
50,675.00
CJE#28
06/30/2013
DRUG FORFEITS & SEIZURES
259-259-4201.002
259
21424.00
CJE#28
06/30/2013
STATE RECYCLING GRANTS
259-259-4471.004
259
50,675.00
CJE#28
06/30/2013
STATE RECYCLING GRANT #2
259-259-4471.007
259
119,817.00
CJE#28
06/30/2013
MISCELLANEOUS REVENUES
259-259-4621.001
259
5,600.00
CJE#28
06/30/2013
MISCELLANEOUS REVENUES
259-259-4621.001
259
51171.00
CJE#28
06/30/2013
MISCELLANEOUS REVENUES
259-259-4621.001
259
750.00
To recognize unearned revenues
which were not restricted.
CJE#29
06/30/2013
SETUP WC NONCURRENT LIABILITY
SETUP WC 721
466,141.00
CJE#29
06/30/2013
CLAIMS PAYMENT
721-12001-5151.002
721
466,141.00
Increase the workers compensation
02/07/2014
10:09 AM Page 14
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-14
red by 1
Prepared by 2
Prepared by 3
In -Charge
1/09/2014
Debit
Credit
ND40 01/09/2014
nager
EK2
Reviewed by
Partner
A&A
01/28/20'
06/30/2013
Allowance for Decline in Value
CJE#32
Number
Date
Name
Account No
06/30/2013
Debit
Credit
06/30/2013
Nonspendable Fund Balance
liability
06/30/2013
Property Held for Resale
CJE#32
06/30/2013
Allowance for Decline in Value
CJE#32
06/30/2013
FUND BALANCE
as of 6/30/13 to match Actuarial Study estimated
outstanding
Property Held for Resale
CJE#32
06/30/2013
Allowance for Decline in Value
CJE#32
06/30/2013
Fund Balance
losses at 90% confidence level of $1,064,117.
06/30/2013
LAND
CJE#32
06/30/2013
INVEST GEN FIXED ASSETS
CJE#30
06/30/2013
CASH CHECKING ACCOUNT
100-100-1001.001
900
100
900-900-3032.001
1,360,980.00
900
CJE#30
06/30/2013
FUND BALANCE
100-100-3021.001
100
1,360,980.00
CJE#30
06/30/2013
CASH CHECKING ACCOUNT
306-306-1001.001
306
1,360,980.00
CJE#30
06/30/2013
FUND BALANCE
306-306-3021.001
306
1,360,980.00
CJE#30
06/30/2013
FUND BALANCE
306-306-3021.001
306
1,256,430.00
CJE#30
06/30/2013
Restricted for Sewer Infrastructure
306-306-3023.007
306
142,084.00
CJE#30
06/30/2013
Restriction for Mikes Tire
306-306-3023.008
306
289.00
CJE#30
06/30/2013
Restricted for Caltrans
306-306-3023.010
306
21921.00
CJE#30
06/30/2013
Restricted for Fire Safety
306-306-3023.011
306
911,820.00
CJE#30
06/30/2013
Restricted for Law Enforecment
306-306-3023.012
306
25,218.00
CJE#30
06/30/2013
Committed to capital projects
306-306-3023.013
306
2413898.00
CJE#30
06/30/2013
Assigned to Sewer capital projects
306-306-3023.014
306
142,084.00
CJE#30
06/30/2013
Assigned to Sewer capital projects
306-306-3023.014
306
21,744.00
CJE#30
06/30/2013
Assigned to Sewer capital projects
306-306-3023.014
306
52,540.00
To transfer funds from the General
Fund to the Developer Fee Fund to cover the advanced funds for
construction costs for the water and sewer lines that were part of
the Golden Valley Road projects (54013306). Transfer fund
balance to restricted fund balance accounts.
CJE#31 06/30/2013 ACCOUNTS PAYABLE
CJE#31 06/30/2013 NSP payment
229-229-2001.001 229
229-13103-5161.001 229
Subsequent Event -To record
payable for ARRA NSP grant funds. HCD is demanding the return of
the grant funds as the timeline for the project was not met.
Payment is scheduled for January 2014.
CJE#32
06/30/2013
Property Held for Resale
CJE#32
06/30/2013
Allowance for Decline in Value
CJE#32
06/30/2013
Nonspendable Fund Balance
CJE#32
06/30/2013
Property Held for Resale
CJE#32
06/30/2013
Allowance for Decline in Value
CJE#32
06/30/2013
FUND BALANCE
CJE#32
06/30/2013
Property Held for Resale
CJE#32
06/30/2013
Allowance for Decline in Value
CJE#32
06/30/2013
Fund Balance
CJE#32
06/30/2013
LAND
CJE#32
06/30/2013
INVEST GEN FIXED ASSETS
02/07/2014
10:09 AM
1,0501123.00
306-306-1082.001
306
703,345.00
306-306-1082.002
306
306-306-3023.015
306
392-392-1082.001
392
2,850,000.00
392-392-1082.002
392
392-392-3021.001
392
393-393-1082.001
393
2,648,243.00
393-393-1082.002
393
393-393-3021.001
393
900-900-1111.001
900
900-900-3032.001
900
6,2011588.00
To record the following
transactions for the Avery City Block; to remove property from
1,0501123.00
453,835.00
249,510.00
1,838,969.00
1,011,031.00
1,708,784.00
939,459.00
6,201,588.00
Page 15
City of Santa Clarita
Year End: June 30, 2013
Trial balance
Date: 07/01/2012 To 06/30/2013
0808.01-15
Prepared by 1
ND40 01/09/2014
Prepared by 2
Prepared by 3
1
In -Charge
ND40 01/09/2014
Manager
Reviewed by
Partner
A&A
Number Date Name Account No Debit Credit
GFAAG, to record the property as land available for resale based on
the following percentages 45.96% Non -Housing, 42.70% Housing,
and 11.34% as City.
348,667,197.00 348,667,197.00
Net Income (Loss) 207503,217.00
02/07/2014
10:09 AM Page 16
City of Santa Clarita
Summary of Uncorrected Misstatements
Year Ended June 30, 2013
During the course of our audit, we accumulated uncorrected misstatements that were determined by
management to be immaterial, both individually and in the aggregate, to the financial position, results of
operations and cash flows, and to the related basic financial statement disclosures. Following is a
summary of those differences:
Governmental Activities
Effect—Debit (Credit)
Description
Assets Liabilities Equity Revenue
Expenses
Impact From Previous Years
Over -depreciation of capital assets
$ - $ - $(1,046,799) $ -
$ 1,046,799
Assets that were not expensed
- - 417,042 -
(417,042)
Highway users taxes not recorded on
accrual basis
- - (484,919) 484,919
-
OPEB asset being understated
- - (691,000) -
691,000
Capital assets not capitalized
- - (1,071,884) -
1,071,884
Capital assets not disposed
- - 140,153 -
(140,153)
Capital assets not transferred to RDA
Successor Agency
- - 220,656 -
(220,656)
Current Year Misstatement
Over -estimation of liability accrual - 84,351 - - (84,351)
$ - $ 84,351 (2,516,751) $ 484,919 $ 1,947,481
Current year effect of change in net position 2,432,400
Effect on ending net position $ (84,351)
Business -Type Activities
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact From Previous Years
Correction of receivable accruals $ $ $ (148,911) $ 148,911 $ -
$ $ (148,911) $ 148,911 $ -
Current year effect of change in net position 148,911
Effect on ending net position $
General Fund
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact From Previous Years
Deferred recognition of interest receivable $ - $ - $ (346,524) $ 346,524 $ -
Compensated absences recorded as
governmental fund liability (247,580) - 247,580
$ $ (594,104) $ 346,524 $ 247,580
Current year effect of change in net position 594,104
Effect on ending net position $ -
Bridge and Thoroughfare Special Revenue Fund
Effect—Debit (Credit)
Deferred recognition of interest receivable $ $ $ (62,333) $ 62,333 $ -
$ $ (62,333) $ 62,333 $
Current year effect of change in net position 62,333
Effect on ending net position $
Public Library Special Revenue Fund
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact From Previous Years
Current Year Misstatement
Over -estimation of liability accrual $ $ 1,902 $ $ $ (1,902)
$ $ 1,902 - $ $ (1,902)
Current year effect of change in net position (1,902)
Effect on ending net position $ (1,902)
Landscape Maintenance District #1 Special Revenue Fund
Effect—Debit (Credit)
Deferred recognition of interest receivable $ $ $ (79,133) $ 79,133 $ -
$ $ (79,133) $ 79,133 $
Current year effect of change in net position 79,133
Effect on ending net position $
Transit Enterprise Fund
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact From Previous Years
Correction of prior year receivable accruals $ $ $ (148,911) $ 148,911 $ -
$ $ (148,911) $ 148,911 $
Current year effect of change in net position 148,911
Effect on ending net position $
Aggregate Non -major Funds
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact From Previous Years
Deferred recognition of interest receivable $ - $ - $ (183,454) $ 183,454 $ -
Assets that were not expensed - - 417,042 - (417,042)
Highway users taxes not recorded on
accrual basis - - (484,919) 484,919 -
Current Year Misstatement
Over -estimation of liability accrual
$ $ 82,449 (251,331) $ 668,373 $ (499,491)
Current year effect of change in net position 168,882
Effect on ending net position $ (82,449)
Exhibit A—Letter Communicating Material Weaknesses in Internal Control Over
Financial Reporting
McGladrey LLP
McGladrey
Independent Auditor's 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, CA
We have audited, in accordance with the 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, 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, 2013, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated January 29, 2014, which included an emphasis of a matter
paragraph modification for several restatements of net position and fund balance as of June 30, 2012.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies; therefore, material weaknesses or significant deficiencies may
exist that were not identified. However, as described in the accompanying Schedule of Findings and
Questioned Costs, we identified certain deficiencies in internal control that we consider to be material
weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance. We consider the deficiencies described in the Schedule of Findings and Questioned
Costs as items 2013-001, 2013-0023 2013-003 and 2013-004 to be material weaknesses.
Member of the RSM I intent at lonal network oflndependent accounting, in and mmuhnig firms.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
The City's Response to Findings
The City's responses to the findings identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs. The City's responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Irvine, CA
January 29, 2014
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
It. Financial Statement Findings
Material Weaknesses
Finding Number: 2013-001 — Collectibility of Notes to RDA Successor Agency
Criteria: Procedures should be in place to periodically evaluate the collectibility of all receivables,
including loans, to determine whether an allowance for doubtful accounts should be recorded.
Condition: At January 31, 2012, the redevelopment agencies for the State of California were
dissolved. Prior to the dissolution, the City had given loans to the former redevelopment agency,
and as of June 30, 2012, the unpaid principal and interest on the loans totaled $13,318,896. The
City did not evaluate the collectibility of these loans; therefore, an allowance for doubtful accounts
was not established. During the audit as of June 30, 2013, McGladrey reviewed the
circumstances surrounding the loans and determined that they had not been approved by the
California Department of Finance as an enforceable obligation of the Successor Agency. This
was brought to management's attention and it was unable to demonstrate that these loans had a
high likelihood of being collectible. As a result, an allowance for doubtful accounts was
established in the funds that held the receivables. This was required to be recorded as of
June 30, 2012, which resulted in the fund balance of the General Fund to be restated as of
June 30, 2012 by $7,013,892, and the net position of the governmental activities to be restated as
of June 30, 2012 by $1333603087.
Cause: The issue was systemic, as personnel within the Finance Department were not
evaluating the collectibility of the loans receivable from the Successor Agency.
Effect: The fund balance and/or net position of certain opinion units have been restated as of
June 30, 2012.
Recommendation: We recommend the City implement procedures to evaluate the collectibility of
all receivables, including loans receivable from the Successor Agency, and determine whether an
allowance for doubtful accounts should be recorded when the collectibility is uncertain.
Management's Response: Management agrees with the recommendation and has established
a separate allowance for doubtful accounts for the notes to the RDA Successor Agency.
Finding Number: 2013-002 — Capital Asset Recording and Record Keeping
Criteria: Due to the significant balance of capital assets, the detailed internal capital asset
records should be reconciled to the City's general ledger and Governmental Accounting
Standards Board (GASB) 34 conversion schedule, and reviewed by the Finance Department on a
periodic basis to ensure that all capital assets are recorded and reported in the correct fund.
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
It. Financial Statement Findings (Continued)
Finding Number: 2013-002 — Capital Asset Recording and Record Keeping (Continued)
Condition: There were several matters noted relating to the City's capital assets, which, in
conjunction, constitute a material weakness. They include:
• A restatement to the net position of the governmental activities and the RDA Successor
Agency Trust as of June 30, 2012 totaling $530,099 for assets not properly transferred to
the RDA Successor Agency upon the dissolution of the former redevelopment agency.
• A restatement to the net position of the governmental activities and the RDA Successor
Agency Trust and fund balances of non -major governmental funds as of June 30, 2012
totaling $6,201,589 to remove an asset from capital assets and properly record it as land
held for resale. This also required the asset to be written down to net realizable value,
which totaled $2,200,000 at June 30, 2012, resulting in a write-down of $4,001,589 for
the year ended June 30, 2012.
• A restatement to the net position of the internal service funds as of June 30, 2012 totaling
$7,680,005 to remove capital assets reported in the internal service funds, which should
only have been reported in the governmental activities.
• A restatement to the net position of the governmental activities as of June 30, 2012 of
$5,640,350 to remove infrastructure that was not being depreciated and did not meet the
criteria listed in the capitalization policy.
• Adjusting entries were recorded to correct assets that were recorded as deletions during
the year ended June 30, 2013; however, the assets were not disposed of, they were
taken out of service. The City still maintains custody of them.
Cause: These issues were systemic, as the City's reconciliation of capital assets was
inconsistent with policies and procedures per the City's capital assets policy. In addition, the
Finance Division did not accurately segregate assets owned by the former redevelopment agency
when the dissolution occurred.
Effect: Adjusting entries were made that resulted in both material adjustments for the year ended
June 30, 2013 and material restatements to the net position of certain opinion units as of June 30,
2012.
Recommendation: We recommend implementing procedures and internal controls to help to
ensure the accuracy and completeness of capital assets reported.
Management's Response: Management agrees with the response and will implement
procedures and internal controls to ensure the accuracy and completeness of capital assets
reported.
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
II. Financial Statement Findings (Continued)
In December 2007, an external firm specializing in infrastructure valuation services was retained
by the City to prepare a comprehensive infrastructure valuation for the purpose of reporting the
current net book value infrastructure assets in compliance with GASB Statement No. 34. In this
valuation is included a net book value for street trees in excess of $5.6 million as a component of
an infrastructure network. The City accepted this recommendation and subsequently capitalized
these street trees. During management's discussions with McGladrey, it was determined that
capitalization of street trees is inconsistent with the City's capitalization policy and have agreed to
remove street trees from its capital assets.
Finding Number: 2013-003 — Recognition of Revenue Previously Reported as Liabilities
Criteria: GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange
Transactions, gives guidance for revenue recognition for derived tax revenues, government -
mandated nonexchange transactions, imposed nonexchange revenues and voluntary
nonexchange transactions.
Condition: As of June 30, 2012, the City had not properly recognized revenue for certain in -lieu
fees and developer contributions that qualified as government -mandated and imposed
nonexchange transactions in accordance with GASB Statement No. 33. The City recorded certain
revenues as liabilities (deposits payable and unearned revenue) until certain program expenditure
had been incurred, at which time the City would recognize revenues. As a result, the fund
balance of the General Fund as of June 30, 2012 was restated by $357,299, the fund balance of
the aggregate non -major governmental funds as of June 30, 2012 was restated by $17066,3982
and the net position of the governmental activities as of June 30, 2012 was restated by
$134233697.
Cause:
These issues
were
systemic, as the City had
not properly
complied with the provisions of
GASB
Statement No.
33.
Effect: The fund balance and/or net position of certain opinion units have been restated as of
June 30, 2012.
Recommendation: We recommend the City continue to evaluate amounts received to help
ensure revenues are recorded in accordance with the provisions of GASB Statement No. 33.
Management's Response: Management agrees with the recommendation and will evaluate
transactions to determine whether it presents an obligation of the City, or if revenue should be
recognized in the period received in accordance with the provisions of GASB Statement No. 33.
Finding Number: 2013-004 — Defined Availability Period
Criteria: National Council on Governmental Accounting (NCGA) Statement 1, Governmental
Accounting and Financial Reporting Principles, requires governmental agencies to adopt a
defined availability period, which is used to determine when revenues should be recognized
under the modified accrual basis of accounting in governmental funds.
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
It. Financial Statement Findings (Continued)
Finding Number: 2013-004 — Defined Availability Period (Continued)
Condition: As of June 30, 2012, the City had not adopted an availability period for the revenue
recognition in the governmental funds. This accounting treatment was not in accordance with the
modified accrual basis of accounting as required by generally accepted accounting principles.
Starting with the fiscal year ended June 30, 2013, the City implemented an availability period of
60 days for property and sales tax revenues and 90 days for all other revenue sources. This
correction was required to be implemented retroactively. As of June 30, 2012, one receivable was
identified that was not received until more than 180 days after year-end. This item was
recognized as revenue as of June 30, 2012; however, it should have been deferred and the
revenue should have been recognized during the year ended June 30, 2013.
Cause: As of June 30, 2012, the City had not formally adopted an availability period for the
revenue recognition in the governmental funds. The City utilized an availability period of 365 days
for all revenues except property tax and sales tax revenue. This accounting treatment was not in
accordance with the modified accrual basis of accounting as required by generally accepted
accounting principles.
Effect: The fund balance and/or net position of certain opinion units have been restated as of
June 30, 2012. Adjusting entries were also prepared to correct the overstatement of
governmental revenues in the current year and record the deferred inflows of resource for
revenues that were not received within the period of availability as of June 30, 2013.
Recommendation: We recommend the City adopt a formalized revenue recognition policy and
continue to perform analysis to help determine if revenues are recorded in accordance with the
adopted policy.
Management's Response: Management agrees with the recommendation and will establish a
formalized revenue recognition policy, which will guide the availability for recognition of revenues
for modified accrual basis of accounting in the governmental funds.
Exhibit B—Significant Written Communication Between Management and Our
Firm
City of
SANTA CLARITA
23920 Valencia Boulevard a Suite 300 • Santa CJarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
m .sante-claritaxom
January 29, 2014
McGladrey LLP
18401 Von Karman Avenue, Floor 5
Irvine, CA 92612
This representation letter is provided in connection with your audit of the basic financial statements of the
City of Santa Clarita, California (City), as of and for the year ended June 30, 2013 for the purpose of
expressing an opinion on whether the financial statements are presented fairly, in all material respects in
accordance with accounting principles generally accepted in the United States (U.S. GAAP).
We confirm, to the best of our knowledge and belief, as of January 29, 2014:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
August 30, 2013, for the preparation and fair presentation of the financial statements referred to
above in accordance with U.S. GAAP.
2. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
3. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control to prevent and detect fraud.
4. Significant assumptions used by us in making accounting estimates, including those measured at fair
value, are reasonable and reflect our judgment based on our knowledge and experience about past
and current events and our assumptions about conditions we expect to exist and courses of action we
expect to take.
5. Related -party transactions, including those with the City having accountability for the Santa Clarita
Watershed and Recreation Conservancy Authority and the Santa Clarita Public Television Authority,
component units for which the City is accountable, other organizations for which the nature and
significance of their relationship with the City are such that exclusion would cause the reporting City's
financial statements to be misleading or incomplete, and jointly governed organizations in which City
participates, and interfund transactions, including interfund accounts and advances receivable and
payable, sale and purchase transactions, interfund transfers, long-term loans, have been recorded in
accordance with the economic substance of the transaction and appropriately accounted for and
disclosed in accordance with the requirements of U.S. GAAP.
6. All events subsequent to the date of the financial statements and for which U.S. GAAP requires
adjustment or disclosure have been adjusted or disclosed.
7. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with U.S. GAAP.
8. We are not aware of any pending or threatened litigation, claims, or assessments that are required to
be accrued or disclosed in the financial statements in accordance with Statement of Financial
tOTAR
Accounting Standards No. 5 and/or GASB Statement No. 10 and we have not consulted a lawyer
concerning litigation claims or assessments.
9. We have no direct or indirect, legal or moral obligation for any debt of any organization, public or
private that is not disclosed in the financial statement.
10. We have complied with all aspects of contractual agreements that would have a material effect on the
financial statements in the event of noncompliance.
11. We have reviewed and determined that all interfund advances outstanding at June 30, 2013 are
collectible.
12. The City has not used restrictive funding sources for any other purpose than the specific purpose
stipulated by the external resource provided, or enabling legislation.
13. The City has satisfactory title to all owned assets.
14. Tax exempt bonds issued have retained their tax-exempt status.
15. We agree with the restatement of the previously issued financial statements discussed in Note 12 and
Note 22 which are comprised of:
Fund balance, as previously reported at June 30, 2012
Collapse of the Public Facilities Replacement Internal Service Fund
totaling $14,105,732, excluding the removal of capital assets
of $2,669,393
Restate for recognition of allowance for loan loss related to
RDA Successor Agency loan
Restate for excess transfers from the General Fund to the
SelfInsuranceInternal Service Fund
Restate for errors in revenue recognition
Restate for expenditures recorded in the incorrect fund
Restate Bridge and Thoroughfare developers credit payable
to exclude as a governmental fund liability
Restate for error resulting from availability recognition criteria
Restate for recognition of land held for resale
Fund balance, as restated at June 30, 2012
Bridge and
Thoroughfare Non -Major
Special Governmental
General Fund Revenue Fund Funds
$ 69,942,023 $ (21,818,543) $ 28,914,252
14,105,732
(7,013,892)
6,091,948
357,299
(1,360,980)
1,066,398
1,360,980
- 35,023,734 -
- (1,310,602)
- - 1,188,969
$ 82,122,130 13,205,191 31,219,997
Governmental
Activities
Net position, as preNously reported at June 30, 2012 $ 872,614,046
Restatement of beginning fund balance of governmental funds as listed above (4,401,226)
Restate for allowance for loan loss related to the RDA Successor Agency loan (6,346,195)
Restate for capital assets capitalized in error (5,640,358)
Restate for capital assets that are reportable in RDA Successor Agency (521,920)
Adoption of GASB 65 - Write-off cost of previous debt issuance costs (1,425,731)
Restate for capital assets that should have been reported as land held for resale (6,201,589)
Net position, as restated at June 30, 2012 $ 848,077,027
Internal Service
Funds
Net position, as previously reported at June 30, 2012 $ 35,908,981
Collapse of the Public Facilities Replacement Fund for $14,105,732 and
removal of capital assets for $2,669,393 (16,775,125)
Restate for excess transfers made by the General Fund (6,091,948)
Restate for capital assets that should not have been reported in the
internal service funds (5,010,612)
Net position, as restated at June 30, 2012 $ 8,031,296
RDA Successor
Agency
Net position, as preNously reported at June 30, 2012 $ (36,999,585)
Adoption of GASB 65 - Write-off preNous debt issuance costs (1,198,052)
Restate for capital assets not transferred to the RDA Successor
Agency upon dissolution 530,099
Restate for recognition of land held for resale 1,011,031
Net position, as restated at June 30, 2012 $ (36,656,507)
In that regard:
a. The restatement corrects an error in those financial statements.
b. We were not aware of the error when those financial statements were issued.
c. We are not aware of any other errors in those financial statements.
d. We do not believe it is necessary to recall those financial statements and all users of those
financial statements will receive a copy of the current year's financial statements and independent
auditor's report.
16. We have informed you of all uncorrected misstatements.
As of and for the Year Ended June 30, 2013
Management believes that the effects of the uncorrected misstatements aggregated by you and
summarized below are immaterial, both individually and in the aggregate to the opinion units of the
financial statements. For purposes of this representation, we consider items to be material,
regardless of their size, if they involve the misstatement or omission of accounting information that, in
light of surrounding circumstances, makes it probable that the judgment of a reasonable person
relying on the information would be changed or influenced by the omission or misstatement.
Governmental Activities
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact from Previous Years
Over -depreciation of capital assets. $ - $ - $ (1,046,799) $ - $ 1,046,799
Assets that were not expensed. - - 417,042 - (417,042)
Highway users taxes not recorded on accrual
basis.
OPEB asset being understated.
Capital assets not capitalized.
Capital assets not disposed.
- (484,919) 484,919 -
- (691,000) - 691,000
- (1,071,884) - 1,071,884
- 140,153 - (140,153)
Capital assets not transferred to RDA
Successor Agency. - - 220,656 - (220,656)
Current Year Misstatements
Owr-estimation of liability accrual. - 84,351 - - (84,351)
$ - $ 84,351 (2,516,751) $ 484,919 $ 1,947,481
Current year effect of change in net position 2,432,400
Effect on ending net position $ (84,351)
Business -Type Activities
Effect—Debit (Credit)
npact from Previous Years
Correction of receivable accruals. $ - $ - $ (148,911) $ 148,911 $ -
$ - $ - (148,911) $ 148,911 $ -
Current year effect of change in net position 148,911
Effect on ending net position $ -
General Fund
Effect—Debit (Cre4
Deferred recognition of interest receivable.
$ - $ - $
(346,524) $
346,524
$ -
Compensated absences recorded as
governmental fund liability.
- -
(247,580)
-
247,580
$ - $ -
(594,104) $
346,524
$ 247,580
Current year effect of change in net position
594,104
Effect on ending net position
$
-
Bridge and Thoroughfare
Special
Revenue Fund
Effect—Debit
(Credit)
Description
Assets Liabilities
Equity
Revenue
Expenses
Impact from Previous Years
Deferred recognition of interest receivable.
$ - $ - $
(62,333) $
62,333
$ -
$ - $ -
(62,333) $
62,333
$ -
Current year effect of change in net position
62,333
Effect on ending net position
$
-
Public Library
Special Revenue
Fund
Effect—Debit
(Credit)
Description
Assets Liabilities
Equity
Revenue
Expenses
Impact from Previous Years
Current Year Misstatements
Over -estimation of liability accrual.
$ - $ 1,902 $
- $
-
$ (1,902)
$ - $ 1,902
- $
-
$ (1,902)
Current year effect of change in net position
(1,902)
Effect on ending net position
$
(1,902)
Landscape Maintenance District#1 Special Revenue Fund
Effect—Debit (Credit)
Deferred recognition of interest receivable. $ - $ - $ (79,133) $ 79,133 $ -
$ - $ - (79,133) $ 79,133 $ -
Current year effect of change in net position 79,133
Effect on ending net position $ -
Transit Enterprise Fund
Effect—Debit (Credit)
Description Assets Liabilities Equity Revenue Expenses
Impact from Previous Years
Correction of prior year receivable accruals. $ - $ - $ (148,911) $ 148,911 $ -
$ - $ - (148,911) $ 148,911 $ -
Current year effect of change in net position 148,911
Effect on ending net position $ -
Deferred recognition of interest receivable. $ - $
Assets that were not expensed. -
Highway users taxes not recorded on accrual
basis.
Current Yea r Misstatements
Aggregate Non -major Funds
Effect—Debit (Credit)
lities Equity Reeenue Expenses
- $ (183,454) $ 183,454 $
417,042 - (417,042)
(484,919) 484,919
Oyer -estimation of liability accrual. - 82,449 - - (82,449)
$ - $ 82,449 (251,331) $ 668,373 $ (499,491)
Current year effect of change in net position 168,882
Effect on ending net position $ (82,449)
Information Provided
17. We have provided you with:
a. Access to all information, of which we are aware that is relevant to the preparation and fair
presentation of the financial statements such as records, documentation, and other matters;
b. Additional information that you have requested from us for the purpose of the audit;
c. Unrestricted access to persons within the City from whom you determined it necessary to obtain
audit evidence.
d. Minutes of the meetings of the governing boards and committees, or summaries of actions of
recent meetings for which minutes have not yet been prepared.
18. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
19. We have disclosed to you the results of our assessment of risk that the financial statements may be
materially misstated as a result of fraud.
20. We have no knowledge of allegations of fraud or suspected fraud, affecting the City's financial
statements involving:
a. Management.
b. Employees who have significant roles in the internal control.
c. Others where the fraud could have a material effect on the financial statements.
21. We have no knowledge of any allegations of fraud or suspected fraud affecting the City's financial
statements received in communications from employees, former employees, analysts, regulators, or
others.
22. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations
whose effects were considered when preparing financial statements.
23. We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the financial statements.
24. We have disclosed to you all of the City's related parties and all the related -party relationships and
transactions of which we are aware.
25. We have informed you of all significant deficiencies, including material weaknesses, in the design or
operation of internal controls that could adversely affect the City's ability to record, process,
summarize, and report financial data.
26. We have informed you of all communications from regulatory agencies concerning noncompliance
with, or deficiencies in, financial reporting practices.
Supplementary Information
27. With respect to supplementary information presented in relation to the financial statements as a
whole:
a.
We
acknowledge
our responsibility for the
presentation of such information.
b.
We
believe such
information, including its
form and content, is fairly presented in accordance with
accounting principles generally accepted in the United States of America.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
d. When supplementary information is not presented with the audited financial statements, we will
make the audited financial statements readily available to the intended users of the
supplementary information no later than the date of issuance of the supplementary information
and the auditor's report thereon.
28. With respect to Management's Discussion and Analysis, Budgetary Comparison Information, and the
Schedules of Funding presented as required by Governmental Accounting Standards Board to
supplement the basic financial statements:
a. We acknowledge our responsibility for the presentation of such required supplementary
information.
b. We believe such required supplementary information is measured and presented in accordance
with guidelines prescribed Governmental Accounting Standards Board.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
29. During the
course of your audit, you may have accumulated
records containing data that should be
reflected in our books and records.
All such data have been
so reflected. Accordingly, copies of such
records in
your possession are no
longer needed by us.
Compliance Considerations
In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm:
30. We are responsible for:
a. Compliance with the laws, regulations, and provisions of contracts and grant agreements
applicable to the City.
b. Establishing and maintaining effective internal control over financial reporting.
31. We have identified and disclosed to you:
c. All laws, regulations, and provisions of contracts and grant agreements that have a direct and
material effect on the determinations of financial statement amounts or other financial data
significant to audit objectives.
d. Violations (and possible violations) of laws, regulations, and provisions of contracts and grant
agreements whose effects should be considered for disclosure in the auditor's report on
noncompliance.
32. We have a process to track the status of audit findings and recommendations
33. We have provided you with our views on your reported findings, conclusions, and recommendations,
as well as our planned corrective actions for the report.
34. The City has designated Carmen Magana, Finance Manager, a senior member of management, who
has sufficient skills, knowledge, and experience; has supervised, reviewed, and approved, and we
take full responsibility for the financial statements and related notes and acknowledge the auditor's
role in the preparation of this information. We also approve of and take full responsibility for all audit
adjustments made in the preparation of the financial statements.
In connection with your audit of federal awards conducted in accordance with OMB Circular A-133, Audits
of States, Local Governments, and Non -Profit Organizations, we confirm:
35. We are responsible for complying, and we have complied, with the requirements of OMB Circular A-
133.
36. We are responsible for understanding and complying with the requirements of laws, regulations, and
the provisions of contracts and grant agreements related to each of our federal programs.
37. We are responsible for establishing and maintaining, and we have established and maintained,
effective internal control over compliance for federal programs that provides reasonable assurance
that we are managing federal awards in compliance with laws, regulations, and the provisions of
contracts or grant agreements that could have a material effect on our federal programs.
38. We have prepared the schedule of expenditures of federal awards in accordance with Circular A-133
and have included expenditures made during the period being audited for all awards provided by
federal agencies in the form of grants, federal cost -reimbursement contracts, loans, loan guarantees,
property (including donated surplus property), cooperative agreements, interest subsidies, insurance,
food commodities, direct appropriations, and other assistance.
39. We have identified and disclosed to you the requirements of laws, regulations, and the provisions of
contracts and grant agreements that are considered to have a direct and material effect on each
major program.
40. We have made available all contracts and grant agreements (including amendments, if any) and any
other correspondence relevant to federal programs and related activities that have taken place with
federal agencies or pass-through entities.
41. We have identified and disclosed to you all amounts questioned and all known noncompliance with
the direct and material compliance requirements of federal awards.
42. We believe that we have complied with the direct and material compliance requirements except for
one instance of noncompliance which we have disclosed to you.
43. We have made available all documentation related to compliance with the direct and material
compliance requirements, including information related to federal program financial reports and
claims for advances and reimbursements.
44. We have provided you our interpretations of any compliance requirements that are subject to varying
interpretations. We have disclosed to you any communications from grantors and pass-through
entities concerning possible noncompliance with the direct and material compliance requirements,
including communications received from the end of the period covered by the compliance audit to the
date of your report.
45. We have disclosed to you the findings received and related corrective actions taken for previous
audits, attestation engagements, and internal or external monitoring that directly relate to the
objectives of the compliance audit, including findings received and corrective actions taken from the
end of the period covered by the compliance audit to the date of your report.
46. We are responsible for taking corrective action on audit findings of the compliance audit.
47. We have provided you with all information on the status of the follow-up on prior audit findings by
federal awarding agencies and pass-through entities, including all management decisions.
48. We have disclosed the nature of any subsequent events that provide additional evidence with respect
to conditions that existed at the end of the reporting period that affect noncompliance during the
reporting period.
49. We have disclosed all known noncompliance with direct and material compliance requirements
occurring subsequent to the period covered by your report.
50. We have disclosed whether any changes in internal control over compliance or other factors that
might significantly affect internal control, including any corrective action taken by us with regard to
significant deficiencies in internal control over compliance (including material weaknesses in internal
control over compliance), have occurred subsequent to the date as of which compliance is audited.
51. Federal program financial reports and claims for advances and reimbursements are supported by the
books and records from which the basic financial statements have been prepared.
52. The copies of federal program financial reports provided to you are true copies of the reports
submitted, or electronically transmitted, to the federal agency or pass-through entity, as applicable.
53. We have monitored subrecipients to determine that they have expended pass-through assistance in
accordance with applicable laws and regulations and have met the requirements of Circular A-133.
54. We have charged costs to federal awards in accordance with applicable cost principles.
55. We are responsible for, and have accurately prepared, the summary schedule of prior audit findings
to include all findings required to be included by Circular A-133.
56. We have accurately completed appropriate sections of the data collection form. We further
acknowledge our responsibility for the complete, accurate, and timely filing of the data collection form
with the Federal Audit Clearinghouse.
City of Santa Clarita, California
Darren Hernandez, Deputy City Man a r & Date
Director of Administrative Services
O)Uvzy� r )ALc „%,c., k 3l - L:�_O I q
Carmen Magana, Finance Manager Date
Exhibit C—Summary of Restatements to Fund Balance and Net Position for the
Year Ended June 30, 2012
City of Santa Clarita, California
Summary of Restatements to Fund Balance and Net Position
For the Year Ended June 30, 2012
During the audit process for the year ended June 30, 20137 it was determined that errors in the
application of generally accepted accounting principles existed in the City's previously issued June 30,
2012 financial statements. As a result of analyzing amounts previously reported, it was determined that
errors existed as described and identified in the three tables below. The impact on the previously reported
changes in net position and changes in fund balances for year ended June 30, 2012 is not readily
determinable.
Beginning fund balance has been restated as follows:
Fund balance, as previously reported at June 30, 2012
Collapse of the Public Facilities Replacement Internal Service Fund,
which excludes the removal of capital assets of $2,669,393
Restate for recognition of allowance for loan loss related to
RDA Successor Agency loan
Restate for excess transfers from the General Fund to the
Self -Insurance Internal Service Fund
Restate for errors in revenue recognition
Restate for expenditures recorded in the incorrect fund
Restate Bridge and Thoroughfare developers credit payable
to exclude as a governmental fund liability
Restate for error resulting from availability recognition criteria
Restate for recognition of land held for resale
Fund balance, as restated at June 30, 2012
Bridge and
Thoroughfare Non -Major
Special Governmental
General Fund Revenue Fund Funds
69,942,023 $ (21,818,543) $ 28,914,252
14,105,732
(7,013,892)
6,091,948 - -
357,299 - 1,066,398
(1,360,980) - 1,360,980
- 35,023,734 -
- - (1,310,602)
- - 1,188,969
$ 82,122,130 $ 13,205,191 $ 31,219,997
Beginning net position in the governmental activities has been restated as follows:
Governmental
Activities
Net position, as previously reported at June 30, 2012 $ 8727614,046
Restatement of beginning fund balance of governmental funds as listed above (4,401,226)
Restate for allowance for loan loss related to the RDA Successor Agency loan (6,3462195)
Restate for capital assets capitalized in error (5,640,358)
Restate for capital assets that are reportable in RDA Successor Agency (5213920)
Adoption of GASB 65, write-off cost of previous debt issuance costs (1,425,731)
Restate for capital assets that should have been reported as land held for resale (65201,589)
Net position, as restated at June 30, 2012 $ 848,077,027
(Continued)
City of Santa Clarita, California
Summary of Restatements to Fund Balance and Net Position (Continued)
For the Year Ended June 30, 2012
Beginning net position in the internal service funds has been restated as follows:
Internal
Service Funds
Net position, as previously reported at June 30, 2012 $ 352908,981
Collapse of the Public Facilities Replacement Fund, which includes capital
assets of $2,669,393 (16,7757125)
Restate for excess transfers made by the General Fund (6,0917948)
Restate for capital assets that should not have been reported in the internal
service funds (5,010,612)
Net position, as restated at June 30, 2012 $ 8,0315296
City of Santa Clarita
Appropriations Limit
Calculation
ITIM, M-11=1111001
McGladrey
Assurance = Tax „ Consulting
McGladrey
Independent Accountant's Report on
Applying Agreed -Upon Procedures
To the Honorable City Council
of the City of Santa Clarita
Santa Clarita, CA
McGladrey LLP
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Calculation of the City of Santa Clarita, California (the City) for the year ended June 30, 2013. These
procedures, which were agreed to by the City and the League of California Cities (as presented in the
publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by
Article X111 -B of the California Constitution), were performed solely to assist the City in meeting the
requirements of Section 1.5 of Article XIII -B of the California Constitution. The City's management is
responsible for the Appropriations Limit Calculation.
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these procedures
is solely the responsibility of those parties specified in this report. Consequently, we make no
representation regarding the sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets No. 1 through No. 7 presented in the Article XIIIB
Appropriations Limitation Uniform Guidelines (or other alternative computations), and observed
the limit and annual adjustment factors adopted by resolution of the City Council. We also
compared the population and inflation options included in the aforementioned worksheets to
those that were selected by a recorded vote of the City Council.
Findings: Resolution 12-37, A Resolution of the City Council of the City of Santa Clarita,
California, Approving and Adopting the Annual Appropriations Limit for the Fiscal Year 2012-
2013, contained the incorrect population factor rate. The correct rate for fiscal year 2012-2013
was 0.38 percent, as determined by the Department of Finance; however, the rate that was
approved in the resolution was 0.35 percent, which was the rate for fiscal year 2011-2012. It was
noted that the correct rate for fiscal year 2012-2013 was used in the calculation of the fiscal year
2012-2013 Appropriations Limit; it was a mistake made when drafting the resolution.
2. For the accompanying Appropriations Limit worksheet No. 6, we added line A, last year's limit, to
line E, total adjustments, and compared the resulting amount to line F, this year's limit.
Findings: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit
worksheet No. 6 to the other worksheets described in No. 1 above.
Findings: No exceptions were noted as a result of our procedures.
Member of the RSM l ntematlanal netwark of In dependentaccaunting, tax and cons a Ring firms.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the
prior year.
Findings: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of
an opinion on the accompanying Appropriations Limit Calculation of the City. Accordingly, we do not
express such an opinion. Had we performed additional procedures, other matters might have come to our
attention that would have been reported to you. No procedures have been performed with respect to the
determination of the appropriations limit for the base year, as defined by Article XIII -B of the California
Constitution.
This report is intended solely for the information and use of the City Council and management of the city,
and is not intended to be, and should not be, used by anyone other than these specified parties.
However, this report is a matter of public record and its distribution is not limited.
Akfj* y G�
Irvine, CA
January 29, 2014
City of Santa Clarita
Appropriations Limit Calculation
Year Ended June 30, 2013
A. Appropriations Limit FY 2011-2012
B. Calculation Factors:
1. Population Increase %
2. Inflation Increase %
3. Total Adjustment %
C. Annual Adjustment Increase
D. Other Adjustments:
1. Loss Responsibility (- )
2. Transfer to private (- )
3. Transfer to fees ( - )
4. Assumed Responsibility ( + )
E. Total Adjustments
F. Appropriations Limit FY 2012-2013
See Notes to Appropriations Limit Calculation.
3
Amount Source
$ 24733977648 Prior Year
1.003800
State
Department of Finance
1.037700
State
Department of Finance
1.041643
(B.1xB.2)
102302,445 [(B.3-1)xA)]
1033027445 (C+D)
$ 25737007093 (A+E)
City of Santa Clarita
Notes to Appropriations Limit Calculation
Note 1. Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the GANN Spending Limitation Initiative), California
governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes.
Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual
calculation of the appropriations limit is subject to a limited procedures review in connection with the
annual audit.
Note 2. Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning during or after July 1990, the appropriations
limit is required to be calculated based on the limit for fiscal year 1987, adjusted for the population and
inflation factors discussed in Notes 3 and 4 below.
Note 3. Population Factors
There are three methods of calculating the change in population that a city may choose in determining the
GANN Limit: (1) The change in population within its jurisdiction; (2) The change in population within its
jurisdiction, combined with the changes in population within all counties having borders that are
contiguous to that city; and (3) The change in population within the incorporated portion of the city. The
City may use any of these methods in any year. The method adopted by the City for fiscal year 2013
represents the change in population within its jurisdiction.
Note 4. Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in
the fourth-quarter per capita personal income (which percentage is supplied by the State Department of
Finance) or the percentage change in the local assessment roll from the preceding year due to the
change of local nonresidential construction. The factor adopted by the City for fiscal year 2013 represents
the annual percentage change in the fourth-quarter per capita personal income.
Note 5. Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events
occur, such as the transfer of responsibility for municipal services to, or from, another government agency
or private entity. The City had no such adjustments for the year ended June 30, 2013.
City of Santa Clarita,
California
Single Audit Report
Year Ended June 30, 2013
McGladrey
Assurance = Tax „ Consulting
Contents
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
1-2
Independent Auditor's 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 4-5
Independent Auditor's Report on Compliance for Each Major Program;
Report on Internal Control Over Compliance; and Report on the Schedule of
Expenditures of Federal Awards Required by OMB Circular A-133 6-7
Schedule of Findings and Questioned Costs
8-12
Schedule of Prior Year Findings and Questioned Costs 13
City of Santa Clarita, California
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
Catalog of
Federal
Domestic Pass -Through/
Assistance Identification Federal
Federal Agency/Grant Name Number Number Expenditures
U.S. Department of Housing and Urban Development:
Direct Program:
Community Development Block Grant
ARRA - Community Development Block Grant
Passed through the State of California:
HOME Investment Partnerships Program
Total U.S. Department of Housing
and Urban Development
U.S. Department of Justice:
Direct Program:
Edward Byrne Memorial Justice Assistance Grant
Passed through the County of Los Angeles:
Edward Byrne Memorial Justice Assistance Grant
Passed through the County of Los Angeles:
Equitable Sharing Program
Total U.S. Department of Justice
U.S. Department of Labor:
Passed through Antelope Valley Workforce
Development Consortium:
Workforce Investment Act - Adult Program
Workforce Investment Act - Dislocated Workers
Total Workforce Investment Act Cluster:
Total U.S. Department of Labor
U.S. Department of Transportation:
Passed through the State of California,
Transportation Department:
Highway Planning and Construction
(Continued)
14.218
B -12 -MC -06-0576
$
963,458
14.218
B -09 -MY -06-0576
20.205
56,074
14.239 11 -HOME -7669 201,300
1,220,832
16.738 2010 -DJ -BX -0729 24,841
16.738 2011 -DJ -BX -2744 16,163
16.738 2012 -DJ -BX -0827 123
16.738 MOU 10-00026 5,355
16.922 CAEO01940 4,163
50,645
17.258 ADW091001 233,004
17.278 ADW091001 249,950
482,954
482,954
20.205
BHLO-5450(066)
129,120
20.205
BHLS-5405(065)
17,416
20.205
BHLS-5450(073)
163,587
20.205
BHLS-5450(080)
3,009
20.205
HSIPL-5450(063)
289,450
20.205
HSIPL-5450(071)
112,733
20.205
HSIPL-5450(070)
43,177
20.205
SRTSL-5450(075)
14,781
20.205
STPL-5450(074)
539,498
20.205
TCSPL-5450(072)
122,353
City of Santa Clarita, California
Schedule of Expenditures of Federal Awards (Continued)
Year Ended June 30, 2013
U.S. Department of Enerov:
Direct Program:
ARRA - Energy Efficiency and Conservation
Block Grant
Total U.S. Department of Energy
U.S. Department of Homeland Security:
Direct Program:
Pre -Disaster Mitigation
Total U.S. Department of Homeland Security
Total Expenditures of Federal Awards
* Major Program
See Notes to Schedule of Expenditures of Federal Awards.
E
81.128 SC0003068 21,413
21,413
97.047 PDM 11-PJ21 2011-0002 61,550
97.047 LPDM-PJ-09-CA-2010-002 23,121
84,671
$ 10,009,524
Catalog of
Federal
Domestic
Pass -Through/
Assistance
Identification
Federal
Federal Agency/Grant Name
Number
Number
Expenditures
U.S. Department of Transportation (Continued):
Direct Program:
Federal Transit Formula Grant*
20.507
CA -90-Y276-01
$ 61,969
20.507
CA -90-Y719-00
3,788,590
20.507
CA -95-X137-00
693,139
ARRA - Federal Transit Formula Grant*
20.507
CA -96-X071-01
1,973,237
ARRA-Transit Investments in Greenhouse
Gas and Energy Reduction Program
20.523
CA -77-0004-00
19,799
Passed through UC Berkeley Traffic Safety Center:
State and Community Highway Safety
20.600
SC12388
13,400
20.600
SC13388
92,636
Passed through the State of California,
Office of Traffic Safety:
State and Community Highway Safety
20.600
20437
459905
20.600
PT1348
259210
Total U.S. Department of Transportation
8,149,009
U.S. Department of Enerov:
Direct Program:
ARRA - Energy Efficiency and Conservation
Block Grant
Total U.S. Department of Energy
U.S. Department of Homeland Security:
Direct Program:
Pre -Disaster Mitigation
Total U.S. Department of Homeland Security
Total Expenditures of Federal Awards
* Major Program
See Notes to Schedule of Expenditures of Federal Awards.
E
81.128 SC0003068 21,413
21,413
97.047 PDM 11-PJ21 2011-0002 61,550
97.047 LPDM-PJ-09-CA-2010-002 23,121
84,671
$ 10,009,524
City of Santa Clarita, California
Notes to Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of
all federal award programs of the City of Santa Clarita (the City) for the year ended June 30, 2013. The
Schedule includes federal awards received directly from federal agencies. The information in this
Schedule is presented in accordance with the requirements of the Office of Management and Budget
(OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Because the
Schedule presents only a selected portion of the operations of the City, it is not intended to, and does not,
present the financial position, changes in net position or cash flows of the City. The City's reporting entity
is defined in Note 1 to the City's basic financial statements.
Note 2. Summary of Significant Accounting Policies
Funds received under the various grant programs have been recorded within the special revenue and
enterprise funds of the City. The City utilizes the modified accrual basis of accounting for the special
revenue funds, and the accrual basis of accounting is used for the enterprise funds. Expenditures are
recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local
and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
Note 3. Subrecipients
The amounts provided to subrecipients
during the
year ended
June 30, 2013 by program are as follows:
Amount
Provided to
CFDA Program Name Grant Identifying Number Subrecipients
14.218 Community Development Block Grant B -12 -MC -06-0576 $ 3493461
Note 4. Department of Homeland Security Grant
The City has received approval to repurpose funding for the Pre -Disaster Mitigation (CFDA 97.047)
program from the Department of Homeland Security. This program is awarded to support mitigation
planning and projects primarily addressing natural hazards and promotes implementation of activities
designed to reduce injuries, loss of life, and damage and destruction to property. The City has received
express notification that expenditures incurred prior to the grant award would be eligible for
reimbursement under this program. Currently, the grant application for the program has been approved
and the City is awaiting the contract and grant agreement to begin submitting reimbursements. As of
June 30, 2013, the City has incurred $23,121 of eligible expenditures that will be reimbursable by the
Department of Homeland Security.
McGladrey LLP
McGladrey
Independent Auditor's 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, CA
We have audited, in accordance with the 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, 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, 2013, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated January 29, 2014, which included an emphasis of a matter
paragraph modification for several restatements of net position and fund balance as of June 30, 2012.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies; therefore, material weaknesses or significant deficiencies may
exist that were not identified. However, as described in the accompanying Schedule of Findings and
Questioned Costs, we identified certain deficiencies in internal control that we consider to be material
weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance. We consider the deficiencies described in the Schedule of Findings and Questioned
Costs as items 2013-001, 2013-0023 2013-003 and 2013-004 to be material weaknesses.
Member of the RSM l ntem at lonal network of indefsendent accounting, tons and cons uRlrg firms.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
The City's Responses to Findings
The City's responses to the findings identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs. The City's responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Irvine, CA
January 29, 2014
McGladrey
McGladrey LLP
Independent Auditor's Report on Compliance for
Each Major Program; Report on Internal Control Over
Compliance; and Report on the Schedule of Expenditures
of Federal Awards Required by OMB Circular A-133
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, CA
Report on Compliance for Each Major Federal Program
We have audited the City of Santa Clarita, California's (the City) compliance with the types of compliance
requirements described in the OMB CircularA-133 Compliance Supplement that could have a direct and
material effect on the City's major federal program for the year ended June 30, 2013. The City's major
federal program is identified in the Summary of Auditor's Results section of the accompanying Schedule
of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts and
grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for the City's major federal program based on
our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-133,
Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular
A-133 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City's compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for its major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on its Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on its major federal program for the year
ended June 30, 2013.
Member of the RSM l ntematlanal netwark of In dependentaccaunting, tax and cons a Ring firms.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on its major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for its major federal program and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance 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
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
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 as of and for the year ended
June 30, 2013, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements. We issued our report thereon dated January 29, 2014, which contained
unmodified opinions on those financial statements, including an emphasis of a matter paragraph
modification for several restatements of net position and fund balance as of June 30, 2012. Our audit was
conducted for the purpose of forming opinions on the financial statements that collectively comprise the
basic financial statements. The accompanying schedule of expenditures of federal awards is presented
for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the
basic financial statements. Such information is the responsibility of management and was derived from,
and relates directly to, the underlying accounting and other records used to prepare the basic 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 basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the
basic financial statements as a whole.
Irvine, CA
January 29, 2014
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
I. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified?
X Yes
No
• Significant deficiency(ies) identified not considered to
be material weaknesses?
Yes
X No
Noncompliance material to financial statements noted?
Yes
X No
Federal Awards
Internal control over major award programs:
• Material weakness(es) identified?
Yes
X No
• Significant deficiency(ies) identified not considered to
be material weaknesses?
Yes
X No
Type of auditor's report issued on compliance for major award
programs: Unmodified
• Any audit findings disclosed that are required to be
reported in accordance with Section 510(a) of OMB
Circular A-133?
Yes
X No
Identification of major federal programs:
CFDA Number
Name of Federal Program
20.507
Federal Transit
Formula Grant
Dollar threshold used to distinguish between Type A and Type B programs:
$300,286
Auditee qualified as low-risk auditee?
X Yes
No
E
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
II. Financial Statement Findings
Material Weaknesses
Finding Number: 2013-001 — Collectibility of Notes to RDA Successor Agency
Criteria: Procedures should be in place to periodically evaluate the collectibility of all receivables,
including loans, to determine whether an allowance for doubtful accounts should be recorded.
Condition: At January 31, 2012, the redevelopment agencies for the State of California were
dissolved. Prior to the dissolution, the City had given loans to the former redevelopment agency,
and as of June 30, 2012, the unpaid principal and interest on the loans totaled $13,318,896. The
City did not evaluate the collectibility of these loans; therefore, an allowance for doubtful accounts
was not established. During the audit as of June 30, 2013, McGladrey reviewed the
circumstances surrounding the loans and determined that they had not been approved by the
California Department of Finance as an enforceable obligation of the Successor Agency. This
was brought to management's attention and it was unable to demonstrate that these loans had a
high likelihood of being collectible. As a result, an allowance for doubtful accounts was
established in the funds that held the receivables. This was required to be recorded as of
June 30, 2012, which resulted in the fund balance of the General Fund to be restated as of
June 30, 2012 by $7,013,892, and the net position of the governmental activities to be restated as
of June 30, 2012 by $1333603087.
Cause: The issue was systemic, as personnel within the Finance Department were not
evaluating the collectibility of the loans receivable from the Successor Agency.
Effect: The fund balance and/or net position of certain opinion units have been restated as of
June 30, 2012.
Recommendation: We recommend the City implement procedures to evaluate the collectibility of
all receivables, including loans receivable from the Successor Agency, and determine whether an
allowance for doubtful accounts should be recorded when the collectibility is uncertain.
Management's Response: Management agrees with the recommendation and has established
a separate allowance for doubtful accounts for the notes to the RDA Successor Agency.
Finding Number: 2013-002 — Capital Asset Recording and Record Keeping
Criteria: Due to the significant balance of capital assets, the detailed internal capital asset
records should be reconciled to the City's general ledger and Governmental Accounting
Standards Board (GASB) 34 conversion schedule, and reviewed by the Finance Department on a
periodic basis to ensure that all capital assets are recorded and reported in the correct fund.
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
II. Financial Statement Findings (Continued)
Finding Number: 2013-002 — Capital Asset Recording and Record Keeping (Continued)
Condition: There were several matters noted relating to the City's capital assets, which, in
conjunction, constitute a material weakness. They include:
• A restatement to the net position of the governmental activities and the RDA Successor
Agency Trust as of June 30, 2012 totaling $530,099 for assets not properly transferred to
the RDA Successor Agency upon the dissolution of the former redevelopment agency.
• A restatement to the net position of the governmental activities and the RDA Successor
Agency Trust and fund balances of non -major governmental funds as of June 30, 2012
totaling $6,201,589 to remove an asset from capital assets and properly record it as land
held for resale. This also required the asset to be written down to net realizable value,
which totaled $2,200,000 at June 30, 2012, resulting in a write-down of $4,001,589 for
the year ended June 30, 2012.
• A restatement to the net position of the internal service funds as of June 30, 2012 totaling
$7,680,005 to remove capital assets reported in the internal service funds, which should
only have been reported in the governmental activities.
• A restatement to the net position of the governmental activities as of June 30, 2012 of
$5,640,350 to remove infrastructure that was not being depreciated and did not meet the
criteria listed in the capitalization policy.
• Adjusting entries were recorded to correct assets that were recorded as deletions during
the year ended June 30, 2013; however, the assets were not disposed of, they were
taken out of service. The City still maintains custody of them.
Cause: These issues were systemic, as the City's reconciliation of capital assets was
inconsistent with policies and procedures per the City's capital assets policy. In addition, the
Finance Division did not accurately segregate assets owned by the former redevelopment agency
when the dissolution occurred.
Effect: Adjusting entries were made that resulted in both material adjustments for the year ended
June 30, 2013 and material restatements to the net position of certain opinion units as of June 30,
2012.
Recommendation: We recommend implementing procedures and internal controls to help to
ensure the accuracy and completeness of capital assets reported.
Management's Response: Management agrees with the response and will implement
procedures and internal controls to ensure the accuracy and completeness of capital assets
reported.
10
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
II. Financial Statement Findings (Continued)
In December 2007, an external firm specializing in infrastructure valuation services was retained
by the City to prepare a comprehensive infrastructure valuation for the purpose of reporting the
current net book value infrastructure assets in compliance with GASB Statement No. 34. In this
valuation is included a net book value for street trees in excess of $5.6 million as a component of
an infrastructure network. The City accepted this recommendation and subsequently capitalized
these street trees. During management's discussions with McGladrey, it was determined that
capitalization of street trees is inconsistent with the City's capitalization policy and have agreed to
remove street trees from its capital assets.
Finding Number: 2013-003 — Recognition of Revenue Previously Reported as Liabilities
Criteria: GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange
Transactions, gives guidance for revenue recognition for derived tax revenues, government -
mandated nonexchange transactions, imposed nonexchange revenues and voluntary
nonexchange transactions.
Condition: As of June 30, 2012, the City had not properly recognized revenue for certain in -lieu
fees and developer contributions that qualified as government -mandated and imposed
nonexchange transactions in accordance with GASB Statement No. 33. The City recorded certain
revenues as liabilities (deposits payable and unearned revenue) until certain program expenditure
had been incurred, at which time the City would recognize revenues. As a result, the fund
balance of the General Fund as of June 30, 2012 was restated by $357,299, the fund balance of
the aggregate non -major governmental funds as of June 30, 2012 was restated by $17066,398,
and the net position of the governmental activities as of June 30, 2012 was restated by
$134233697.
Cause: These issues were systemic, as the City had not properly complied with the provisions of
GASB Statement No. 33.
Effect: The fund balance and/or net position of certain opinion units have been restated as of
June 30, 2012.
Recommendation: We recommend the City continue to evaluate amounts received to help
ensure revenues are recorded in accordance with the provisions of GASB Statement No. 33.
Management's Response: Management agrees with the recommendation and will evaluate
transactions to determine whether it presents an obligation of the City, or if revenue should be
recognized in the period received in accordance with the provisions of GASB Statement No. 33.
Finding Number: 2013-004 — Defined Availability Period
Criteria: National Council on Governmental Accounting (NCGA) Statement 1, Governmental
Accounting and Financial Reporting Principles, requires governmental agencies to adopt a
defined availability period, which is used to determine when revenues should be recognized
under the modified accrual basis of accounting in governmental funds.
11
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
II. Financial Statement Findings (Continued)
Finding Number: 2013-004 — Defined Availability Period (Continued)
Condition: As of June 30, 2012, the City had not adopted an availability period for the revenue
recognition in the governmental funds. This accounting treatment was not in accordance with the
modified accrual basis of accounting as required by generally accepted accounting principles.
Starting with the fiscal year ended June 30, 2013, the City implemented an availability period of
60 days for property and sales tax revenues and 90 days for all other revenue sources. This
correction was required to be implemented retroactively. As of June 30, 2012, one receivable was
identified that was not received until more than 180 days after year-end. This item was
recognized as revenue as of June 30, 2012; however, it should have been deferred and the
revenue should have been recognized during the year ended June 30, 2013.
Cause: As of June 30, 2012, the City had not formally adopted an availability period for the
revenue recognition in the governmental funds. The City utilized an availability period of 365 days
for all revenues except property tax and sales tax revenue. This accounting treatment was not in
accordance with the modified accrual basis of accounting as required by generally accepted
accounting principles.
Effect: The fund balance and/or net position of certain opinion units have been restated as of
June 30, 2012. Adjusting entries were also prepared to correct the overstatement of
governmental revenues in the current year and record the deferred inflows of resource for
revenues that were not received within the period of availability as of June 30, 2013.
Recommendation: We recommend the City adopt a formalized revenue recognition policy and
continue to perform analysis to help determine if revenues are recorded in accordance with the
adopted policy.
Management's Response: Management agrees with the recommendation and will establish a
formalized revenue recognition policy, which will guide the availability for recognition of revenues
for modified accrual basis of accounting in the governmental funds.
III. Federal Awards Findings and Questioned Costs
No matters were reported.
12
City of Santa Clarita, California
Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2013
I. Financial Statement Findings
No matters were reported for the fiscal year ended June 30, 2012.
II. Federal Awards Findings and Questioned Costs
No matters were reported for the fiscal year ended June 30, 2012.
13
The Transit Enterprise Fund
of the City of Santa Clarita
Financial Report
Year Ended June 30, 2013
McGladrey
Assurance - Tax = Consulting
Contents
Independent Auditor's Report 1-2
Financial Statements
Statement of net position 3
Statement of revenues, expenses, and changes in net position 4
Statement of cash flows 5
Notes to financial statements 6-10
McGladrey LLP
McGladrey
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, CA
Report on the Financial Statements
We have audited the accompanying financial statements of the Transit Enterprise Fund (the Fund) of the
City of Santa Clarita (the City) as of and for the year ended June 30, 2013, and the related notes to the
financial statements, which collectively comprise the Fund's basic financial statements as listed in the
table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the Fund's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Fund's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Fund as of June 30, 2013, and the changes in its financial position and cash flows
for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Member of the RSM International network of Independent accounting. tai and conruMrg firms.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Fund and do
not purport to, and do not, present fairly the financial position of the City as of June 30, 2013, the changes
in its financial position, or, where applicable, its cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America. Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Management has omitted the Management's Discussion and Analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report under a separate
cover dated January 29, 2014 on our consideration of the City's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and 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 the internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the Fund's
internal control over financial reporting and compliance.
Irvine, CA
January 29, 2014
Financial Statements
The Transit Enterprise Fund of the City of Santa Clarita
Statement of Net Position
June 30, 2013
Assets
Current Assets
Prepaids $ 2402261
Due from other governments 93126,508
Total current assets 93366,769
Noncurrent Assets
Capital assets, net 7635612407
Total assets 8539282176
Liabilities
Current Liabilities
Accounts payable 337302953
Due to other funds of the City of Santa Clarita 137382468
Compensated absences payable 622032
Total current liabilities 5,531,453
Total liabilities 5,531,453
Net Position
Net Investment in Capital Assets
Unrestricted
Total net position
See Notes to Financial Statements.
3
76,561,407
3,835,316
$ 80,396,723
The Transit Enterprise Fund of the City of Santa Clarita
Statement of Revenues, Expenses, and Changes in Net Position
For the Year Ended June 30, 2013
Operating revenues:
Metrolink and EZ pass revenues
Fixed -route passenger fares
Dial -A -Ride passenger fares
County of Los Angeles operating assistance
Specialized transit services
Miscellaneous revenues
Total operating revenues
Operating expenses:
Salaries and benefits
Administrative services
Contract transportation services
Insurance
Supplies, utilities and other
Depreciation
Total operating expenses
Operating loss
Nonoperating revenues (expenses):
Proposition A
Proposition C
Measure R
Other revenues
Transit mitigation fees
Other federal assistance (CNG fuel rebate)
Interest income
Loss on disposal of capital assets
Total nonoperating revenues
Loss before contributions and transfers
Capital contributions:
Federal Transit Administration capital grants
Prop C MOSIP
Capital contributions
Total capital contributions
Transfers in
Transfers out
Change in net position
Net position
Beginning of year
End of year
See Notes to Financial Statements.
Ej
$ 141,461
3,847,099
99,435
1,635,503
925,932
213,656
6,863,086
1,093,123
717,102
17,465,062
120,300
1,830,947
4,409,915
25,636,449
(18,773,363)
5,379,933
447,757
1,961,221
290,406
63,000
436,892
29,660
(17,304)
8,591,565
(10,181,798)
7,466,090
947,148
100,000
8,513,238
5,435,298
(248,074)
3,518,664
76,878,059
$ 80,396,723
The Transit Enterprise Fund of the City of Santa Clarita
Statement of Cash Flows
For the Year Ended June 30, 2013
Cash Flows From Operating Activities
Cash received from customers and users $ 41087,995
Cash payments to suppliers of goods and services (19,398,788)
Cash payments to employees (1,083,455)
Cash received from other sources 2,775,091
Net cash used in operating activities (13,619,157)
Cash Flows From Noncapital Financing Activities
Cash transfers out (248,074)
Cash transfers in 51435,298
Loans received from the General Fund 11738,468
Net cash provided by noncapital financing activities 61925,692
Cash Flows From Capital and Related Financing Activities
Federal and state grants received 117300,031
Acquisition of capital assets (77244,461)
Proceeds from disposal of capital assets 34,475
Net cash provided by capital and related financing activities 41090,045
Cash Flows From Investing Activities
Interest received 31,514
Net cash provided by investing activities 31,514
Net decrease in cash and cash equivalents (21571,906)
Cash
and
Cash
Equivalents,
beginning of year
2,571,906
Cash
and
Cash
Equivalents,
end of year
$
Reconciliation of Operating Income to Net Cash Used in Operating Activities
Operating loss $ (18,773,363)
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation 4,409,915
Changes in operating assets and liabilities:
(Increase) in prepaids (51,467)
Increase in accounts payable and accrued liabilities 786,090
Increase in compensated absences 91668
Total adjustments 5,154,206
Net cash used in operating activities $ (13,619,157)
Noncash capital, and financing activities
Disposal of capital assets $ (51,779)
Contribution of capital assets $ 100,000
See Notes to Financial Statements.
The Transit Enterprise Fund of the City of Santa Clarita
Notes to Financial Statements
Note 1. Nature of Business and Summary of Significant Accounting Policies
Nature of business: The financial statements of the Transit Enterprise Fund (the Fund) of the City of
Santa Clarita, California (the City) are intended to present the financial position and results of bus line
services operation. The financial statements of the Fund are included as a business -type (enterprise
fund) activity in the basic financial statements of the City.
As an operator of a public transportation system, the City is eligible for Transportation Development Act
(TDA) Public Utilities Code Section 99260 (TDA Section 99260) funds. These funds were allocated by the
Los Angeles County Metropolitan Transportation Authority to supplement the City's transit operations.
A summary of the Fund's significant accounting policies is as follows:
The accounting policies of the Fund are in conformity with accounting principles generally accepted in the
United States of America (U.S. GAAP) applicable to governmental units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial
reporting principles.
Financial presentation: The financial statements of the Fund include the statement of net position, the
statement of revenues, expenses, and changes in net position, and the statement of cash flows.
The financial statements are prepared 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 position. The statement of revenues, expenses, and changes in net
position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual
basis of accounting, revenues are recognized in the period in which they are earned, while expenses are
recorded in the period in which the liability is incurred.
Operating revenues are those revenues that are generated from the primary operations of the local,
commuter, Dial -A -Ride and Access Services, Inc. transit operations and maintenance. All other revenues
are reported as nonoperating revenues, and intergovernmental revenue received primarily for capital
acquisitions are reported as capital contributions. Operating expenses are those expenses that are
essential to the primary operations of the Fund. All other expenses are reported as nonoperating
expenses.
Cash and investments: The Fund's cash balance was pooled with various other City funds for deposit
and investment purposes. The City's treasury is responsible for the cash management of the Fund's cash
balance, which pools available cash for investment purposes. The 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. Each City fund owns a share of pooled cash and
investments, which are separately maintained, and interest income was apportioned based on its average
month-end cash balances to the total of the pooled cash and investments. At June 30, 2013, the Fund
has borrowed $1,738,468 from the City's pooled cash and investments.
Prepaids: Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government -wide and fund financial statements. These are
accounted for using the consumption method, and accordingly, the expenditure is recorded in the period
in which the goods and/or services are received.
The Transit Enterprise Fund of the City of Santa Clarita
Notes to Financial Statements
Note 1. Nature of Business and Summary of Significant Accounting Policies (Continued)
Administrative services: The Fund has no direct employees, as all personnel -related services are
provided by vendors through transportation service contracts or through City employees. Costs for such
City employees, including the allocation of accrued compensated absences liabilities, are allocated to the
Fund based on an approved cost allocation plan.
Grants: Grant
revenues and receivables are recorded when
earned on grants
that have been approved
and funded by
the grantor, and when eligibility requirements
for the grant have
been met. Grant sources
include Federal Transit Administration, TDA, Proposition A and
Proposition C.
Capital assets: Capital assets include land, site improvements, buildings and improvements, and
vehicles and equipment assets. 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 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:
Site improvements
Buildings and improvements
Equipment
5-25 years
5-50 years
5-25 years
Net
position:
Net position represents
the
difference between assets and deferred outflows, and liabilities
and
deferred
inflows, and is classified
into
three categories:
Net investment in capital assets: This amount consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction or improvement of those assets, and excludes unspent debt proceeds. Deferred
outflows of resources and deferred inflows of resources that are attributable to the acquisition,
construction or improvement of those assets or related debt also should be included in this
component of net position.
• Restricted net position: This amount represents the net position that is subject to 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.
• Unrestricted net position: This amount represents the residual of amounts not classified in the
other two categories and represents the net position available for the City.
When an expense is incurred for purposes for which both restricted and unrestricted net position are
available, the City's policy is to apply restricted net position first.
Employee compensated absences: It is the City's policy to permit employees to accumulate earned but
unused vacation (compensated absences). This accumulation is recorded as an expense and liability of
the Fund in the fiscal year earned. The outstanding balance as of June 30, 2013 was $62,032 and was
considered due within one year.
The Transit Enterprise Fund of the City of Santa Clarita
Notes to Financial Statements
Note 1. Nature of Business and Summary of Significant Accounting Policies (Continued)
Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions. These estimates and assumptions affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition,
estimates affect the reported amount of expenses. Actual results could differ from these estimates and
assumptions.
Pronouncements issued but not yet adopted: The GASB has issued pronouncements that have an
effective date subsequent to June 30, 2013, which may impact future financial presentations. Except as
noted below, management has not currently determined what, if any, impact implementation of the
following statements may have on future financial statements of the Fund.
• GASB Statement No. 66, Technical Corrections -2012: Effective for the Fund's year ending
June 30, 2014.
• GASB Statement No. 68, Accounting and Financial Reporting for Pensions: Effective for the
Fund's fiscal year ending June 30, 2015. Management believes that there will be a significant
impact on liabilities and net position when this statement is implemented; however, the amount of
the impact has not yet been determined.
• GASB Statement No. 69, Government Combinations and Disposals of Government Operations:
Effective for the Fund's fiscal year ending June 30, 2015.
• GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial
Guarantees: Effective for the Fund's fiscal year ending June 30, 2014.
• GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date, an amendment to GASB Statement No. 68: Effective simultaneously with
GASB Statement No. 68.
Adoption of accounting standards: The Fund implemented the provisions of GASB Statement No. 63
(GASB 63), Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and
Net Position, and GASB Statement No. 65 (GASB 65), Items Previously Reported as Assets and
Liabilities for year ended June 30, 2013. The impact of the implementation of GASB 63 resulted in new
financial reporting presentation of deferred outflows of resources, deferred inflows of resources, and net
position. The impact of the implementation of GASB 65 applies to accounting and financial reporting for
governmental activities, business -type activities, proprietary funds and fiduciary funds.
The Fund also implemented GASB Statement No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements. The
purpose of this statement is to incorporate into the GASB's authoritative literature certain accounting
and financial reporting guidance that is included in the various pronouncements issued on or before
November 30, 1989, which does not conflict with or contradict GASB pronouncements.
The Transit Enterprise Fund of the City of Santa Clarita
Notes to Financial Statements
Note 2. Cash and Investments
The Fund reported a cash and investments balance of zero as of June 30, 2013.
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment
Risk Disclosures, are reported in the annual report of the City. The pooled cash and investments is
unrated, and average maturity is 30 days or less.
Note 3. Due From Other Governments
Due from other governments consists of the following at June 30, 2013:
Agency Amount
Los Angeles County $ 2,7607272
Federal Transit Administration 526797484
Other federal agencies 4987361
Other agencies 1887391
$ 9,1265508
Note 4. Capital Assets
Changes in capital assets of the Fund at June 30, 2013 consisted of the following:
Non -depreciable assets:
Land
Construction -in -progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Building and improvements
Equipment
Total depreciable assets
Less accumulated depreciation
Site improvements
Building and improvements
Equipment
Total accumulated depreciation
Total depreciable assets, net
Capital assets, net
Balance
$ -
$ - $ -
Balance
July 1, 2012
Additions
Deletions Transfers
June 30, 2013
$ 15,087,880
$ -
$ - $ -
$ 15,087,880
2,875,594
1,524,935
- (2,255,239)
2,145,290
17,963,474
1,524,935
- (2,255,239)
17,233,170
(35,160,512)
(4,409,915)
4,892,537 -
(34,677,890)
7,261,748
-
- 151,453
7,413,201
41,483,799
-
- -
41,483,799
42,230,131
5,719,526
(4,944,316) 2,103,786
45,109,127
90,975,678
5,719,526
(4,944,316) 2,255,239
94,006,127
(769,076)
(347,098)
- -
(1,116,174)
(7,508,999)
(883,347)
- -
(8,392,346)
(26,882,437)
(3,179,470)
4,892,537 -
(25,169,370)
(35,160,512)
(4,409,915)
4,892,537 -
(34,677,890)
55,815,166
1,309,611
(51,779) 2,255,239
59,328,237
$ 73,778,640
$ 2,834,546$
(51,779) $
$ 76,561,407
Depreciation expense of the Fund was $4,409,915 the year ended June 30, 2013.
E
The Transit Enterprise Fund of the City of Santa Clarita
Notes to Financial Statements
Note 5. Interfund Activity
During the year ended June 30, 2013, the Fund has borrowed $1,738,468 from the General Fund to
eliminate deficit cash balances.
During the year ended June 30, 2013, the Fund transferred $248,074 to the General Fund and nonmajor
governmental funds for transit operation forecasts for support of transit operations, and transferred in
from the nonmajor governmental funds $5,435,298 for Propositions A and C, and Measure R local return
operating revenues.
Note 6. Administrative and Personnel Costs
Certain general and
administrative costs are allocated to
the Fund by the City based upon an
approved
cost allocation plan.
Such allocated costs were $717,102
for the year ended June 30, 2013.
Note 7. Contingencies
The City, on the Fund's behalf, is presently involved in certain matters of litigation that have arisen in the
normal course of conducting the Fund's business. Management believes, based upon consultation with
attorneys, that these cases, in the aggregate, are not expected to result in a material adverse financial
impact on the Fund. Additionally, the Fund participates in the City's Self -Insurance Internal Service Fund.
Management believes that the City's Self -Insurance Internal Service Fund reserves are sufficient to cover
any potential losses should an unfavorable outcome materialize.
The City participates, on the Fund's behalf, in a number of federally assisted grant programs. Receipts
from these grant programs are subject to audit to determine if the monies were expended in accordance
with appropriate statutes, grant terms and regulations. Management believes no significant liabilities will
result.
10
Santa Clarita Open Space
Preservation District
Financial Report
Year Ended June 30, 2013
McGladrey
Assurance = Tax „ Consulting
Contents
Independent Auditor's Report 1-2
Basic Financial Statements
Government -wide financial statements:
Statement of net position
Statement of activities
Fund financial statements:
Governmental fund statements:
Balance sheet
3
0
5
Reconciliation of the governmental funds balance sheet to the government -wide
statement of net position 6
Statement of revenues, expenditures, and changes in fund balance
7
Reconciliation of the governmental funds statement of revenues, expenditures, and
changes in fund balance to the government -wide statement of activities 8
Notes to financial statements
9-15
Required Supplementary Information (Unaudited)
Budgetary comparison schedule—Open Space Preservation District 16
Note to required supplementary information 17
McGladrey LLP
McGladrey
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, CA
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the major
fund of the Open Space Preservation District (the District) of the City of Santa Clarita (the City) as of and
for the year ended June 30, 2013, and the related notes to the financial statements, which collectively
comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion 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 from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities and the major fund of the District as of June 30, 2013, and
the respective changes in financial position for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Member of the RSM l ntematlanal netwark of In dependentaccaunting, tax and cons a Ring firms.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the financial statements only present the District and
do not purport to, and do not, present fairly the financial position of the City as of June 30, 2013 and the
changes in its financial position for the year then ended in conformity with accounting principles generally
accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Matter
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary
comparison information as listed in the table of contents be presented to supplement the financial
statements. Such information, although not a part of the financial statements, is required by the
Governmental Accounting Standards Board, which considers it to be an essential part of financial
reporting for placing the 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 financial statements and other knowledge
we obtained during our audit of the 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.
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, which considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic or historical
context. Our opinion on the basic financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report under a separate
cover dated January 29, 2014, on our consideration of the City's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and 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 in considering the City's internal
control over financial reporting and compliance.
Aej* zG�
Irvine, CA
January 29, 2014
Basic Financial Statements
Government -Wide Financial Statements
Santa Clarita Open Space Preservation District
Statement of Net Position
June 30, 2013
Assets
Governmental
Activities
Current Assets
Pooled cash and investments
$ 4,6003437
Receivables:
123223005
Accounts
63497
Interest
133224
Special assessments
39,364
Total current assets
4,6593522
Noncurrent Assets
Restricted assets:
Cash and investments
426933286
Cash and investments with fiscal agents
123223005
Capital assets:
Nondepreciable assets
14,1333952
Depreciable assets, net
433774
Capital assets, net
14,1773726
Total noncurrent assets
2021933017
Total assets
242852,539
Liabilities
Current Liabilities
Accounts payable and accrued liabilities
157882
Interest payable
176,085
Certificates of participation, current portion
907000
Total current liabilities
2813967
Noncurrent Liabilities
Certificates of participation 15,2843898
Total noncurrent liabilities 15,2847898
Total liabilities 1525667865
Net Position
Net Investment in Capital Assets 4,8187119
Restricted for Open Space Preservation 32145,550
Restricted for Debt Service 1,322,005
Total net position $ 9,2855674
See Notes to Financial Statements.
3
Santa Clarita Open Space Preservation District
Statement of Activities
For the Year Ended June 30, 2013
General Revenues
Investment income 203137
Transfers to City (123657)
Total general revenues and transfers 73480
Change in net position (5853324)
Net
position,
Program
Net(Expense)
Net
position,
Revenue
Revenue and
Charges for
Changesin
Functions/Programs
Expenses
Services
Net Position
Governmental Activities
General government
$ 1,809,943
$ 1,930,826
$ 1203883
Interest and fiscal charges
713,687
-
(7137687)
Total governmental activities
$ 25523,630
$ 1,930,826
(5923804)
General Revenues
Investment income 203137
Transfers to City (123657)
Total general revenues and transfers 73480
Change in net position (5853324)
Net
position,
beginning of year
9,8701998
Net
position,
end of year
$ 9,285,674
See Notes to Financial Statements.
M
Fund Financial Statements
Santa Clarita Open Space Preservation District
Balance Sheet
Governmental Funds
June 30, 2013
General
Assets Fund
Pooled Cash and Investments $ 4,6003437
Receivables
Accounts 63497
Interest 133224
Special assessments 393364
Restricted Assets
Cash and investments 4,6933286
Cash and investments with fiscal agents 1,322,005
Total assets $ 10,674,813
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ 157882
Total liabilities 153882
Fund Balance
Restricted for open space preservation 923363926
Restricted for debt service 1,322,005
Total fund balance 10,6581931
Total liabilities and fund balance $ 10,6745813
See Notes to Financial Statements.
Santa Clarita Open Space Preservation District
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2013
Fund balance of governmental funds $ 10,658,931
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the governmental funds. Those
capital assets consist of:
Nondepreciable assets 1431332952
Depreciable assets, net of accumulated depreciation 43,774
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the governmental funds. Those long-term
liabilities consist of:
Certificates of participation (153430,000)
Less: Unamortized net bond discount 55,102
Accrued interest payable on long-term liabilities does not require the
use of current financial resources and therefore are not reported in the
governmental funds. (176,085)
Net position of governmental activities $ 9,2855674
See Notes to Financial Statements.
Santa Clarita Open Space Preservation District
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
For the Year Ended June 30, 2013
Expenditures:
Current:
General government 178083040
Capital outlay 206,614
Debt service:
Principal 603000
Interest and fiscal charges 7113051
Total expenditures 277853705
Excess (deficiency) of revenues
over(under)expenditures (8343742)
Other financing uses:
Transfers out (123657)
Net change in fund balance (847,399)
Fund
General
Fund
Revenues:
11,506,330
Special assessments
$ 129083826
Charges for services
23000
Investment income
203137
Other revenue
203000
Total revenues
179503963
Expenditures:
Current:
General government 178083040
Capital outlay 206,614
Debt service:
Principal 603000
Interest and fiscal charges 7113051
Total expenditures 277853705
Excess (deficiency) of revenues
over(under)expenditures (8343742)
Other financing uses:
Transfers out (123657)
Net change in fund balance (847,399)
Fund
balance,
beginning of year
11,506,330
Fund
balance,
end of year
$ 10,658,931
See Notes to Financial Statements.
Santa Clarita Open Space Preservation District
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes
in Fund Balance to the Government -Wide Statement of Activities
For the Year Ended June 30. 2013
Net change in fund balance—total governmental funds $ (847,399)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, the costs of those assets are allocated over the estimated
useful lives as depreciation expense. The following were the amounts of capital
outlay and depreciation expense in the current period:
Capital outlay 2067614
Depreciation expense (17903)
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net position. 602000
Other expenses in the statement of activities that do not use current financial
resources are not reported as expenditures in the governmental funds:
Change in accrued interest 17978
Amortization of bond premium (42614)
Change in net position of governmental activities $ (5857324)
See Notes to Financial Statements.
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 1. Organization and Summary of Significant Accounting Policies
Organization: On July 17, 2007, the City of Santa Clarita (the City) established the Santa Clarita Open
Space Preservation District (the District) pursuant to the provisions of the Landscape and Lighting Act of
1972, being Part 2 of Division 15 of the California Street and Highway Code. The purpose of the District is
to fund a portion of the City's open space, park and parkland program consisting of the acquisition,
preservation, improvement, servicing, financing and maintenance of open -space land, parks and
parkland, and appurtenant equipment and facilities, including the payment of debt service, of benefit to
the property within the District. Facilities include, but are not limited to, open -space land, parks,
parklands, the Santa Clarita River Watershed, trail systems and wildlife corridors. These are financed by
special assessments levied on parcels within the City boundaries. The boundaries of the District are the
same as the boundaries of the City. The City established a special revenue fund to account for the
activities of the District.
Basis of presentation: The District's statements are prepared in conformity with accounting principles
generally accepted in the United States of America (U.S. GAAP). The Government Accounting Standards
Board (GASB) is the acknowledged standard-setting body for establishing accounting and financial
reporting standards followed by governmental entities in the United States. The financial statements were
prepared from only the accounts of the District and, therefore, do not present the financial position or
results of operations of the City.
Government -wide financial statements: The District's government -wide financial statements (i.e., the
statement of net position and the statement of activities) report information on all the activities of the
District.
The statement of activities demonstrates the degree to which the direct expenses of a given function are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function. Program revenues include (1) charges to customers or applicants who purchase, use or
directly benefit from goods, services or privileges provided by a given function, and (2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function.
The government -wide financial statements are presented on an "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all of the District's assets and liabilities,
including capital assets, are included in the accompanying statement of net position. The statement of
activities presents changes in net position. 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.
Fund financial statements: Governmental fund financial statements include a balance sheet and a
statement of revenues, expenditures, and changes in fund balances.
These statements are accounted for on a spending or "current financial resources" measurement focus
and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are
included on the balance sheets. The statement of revenues, expenditures, and changes in fund balance
present increases (revenues and other financing sources) and decreases (expenditures and other
financing uses) in the fund balance. The primary revenue sources are special assessments and interest
revenue. Under the modified accrual basis of accounting, revenues are recognized in the accounting
period in which they become both measurable and available to finance expenditures of the current
period. Revenues are considered available if they are collected within 90 days of the end of the current
fiscal period, except for special assessments, which are within 60 days.
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
Expenditures are recorded in the accounting period in which the related fund liability is incurred.
However, debt service expenditures are recorded only when payment is due.
Cash and investments: The District's cash and investments balance was pooled with various other City
funds for deposit and investment purposes. The City's treasury is responsible for the cash management
of the District's cash balance, which pools available cash for investment purposes. Each City fund owns a
share of pooled cash and investments, which are separately maintained, and interest income was
apportioned based on its average month-end cash balances to the total of the pooled cash and
investments.
The District's cash and investments with fiscal agents are pledged for payment or security of certain long-
term debt issuances. The California Government Code provides that these monies, in the absence of
specific statutory provisions governing the issuance of the bonds, may be invested in accordance with the
ordinance, resolution or indentures specifying the types of investments its trustees or fiscal agents may
make.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments
and for External Investment Pools, highly liquid investments with maturities of one year or less at the time
of purchase are stated at amortized cost. All other investments are stated at fair value. Fair value is the
amount at which an investment could be exchanged in a current transaction between willing parties, other
than a forced or liquidation sale.
Capital assets: Capital assets owned by the District consist of land and site improvements. Capital
assets are defined as assets having an initial cost of more than $5,000 and an estimated useful life in
excess of one year. Such assets are capitalized in the governmental activities financial statement at
historical cost or estimated historical cost if purchased or constructed. The site improvements are being
depreciated over 25 years on a straight-line basis.
The governmental fund financial statements do not report capital assets. Instead, capital asset purchases
are reported as capital outlay expenditures. As such, capital assets are reported as a reconciling item in
the reconciliation of the governmental funds balance sheet to the government -wide statement of net
position.
Special assessments: Special assessments are an enforceable lien on property and are assessed
annually as of January 1 of each year. Special assessments are levied on the property tax roll on each
July 1 and are payable in two installments on November 1 and February 1, which become delinquent on
December 10 and April 10, respectively. The County of Los Angeles bills and collects special
assessments for the District.
Net Position and Fund Balance
Net position: Net position represents the difference between assets and deferred outflows, and liabilities
and deferred inflows, and is classified into three categories:
Net investment in capital assets: Consists of capital assets, net of accumulated depreciation, reduced
by the outstanding balances of any borrowings used for the acquisition, construction or improvement of
those assets, and excludes unspent debt proceeds. Deferred outflows of resources and deferred inflows
of resources that are attributable to the acquisition, construction or improvement of those assets or
related debt are also included in this component of net position.
10
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
Restricted: Represents the net position that is not accessible for general use due to 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.
Unrestricted: Represents the residual amounts not classified in the other two categories and
represents the net equity available to the District.
Fund financial statements: In the governmental fund financial statements, fund balances are classified
in the following categories:
Nonspendable: These are items that cannot be spent because they are not in spendable form, such as
prepaid items and inventories, items that are legally or contractually required to be maintained intact,
such as principal of an endowment or revolving loan funds.
Restricted: 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 the City's highest level of decision
making, the City Council, and that remain binding unless removed in the same manner.
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
delegated the authority to the city manager.
Unassigned: This includes the residual amount that has not been restricted or committed to a specific
purpose.
Spending Policy
Government -wide financial statements: When an expense is incurred for purposes for which both
restricted and unrestricted net position are available, the District's policy is to apply restricted net
position first.
Fund financial statements: When expenditures are incurred for purposes for which all restricted,
committed, assigned and unassigned fund balances are available, the District's policy is to apply the
following, in the following order, except for instances wherein an ordinance specifies the fund balance:
restricted, committed, assigned then unassigned.
Use of estimates: The preparation of the financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions. These estimates and assumptions affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition,
estimates affect the reported amount of expenses. Actual results could differ from these estimates and
assumptions.
11
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
Pronouncements issued but not yet adopted: The GASB has issued pronouncements that have an
effective date subsequent to June 30, 2013, which may impact future financial presentations. Except as
noted below, management has not currently determined what, if any, impact implementation of the
following statements may have on future financial statements of the District:
GASB Statement No. 66, Technical Corrections -2012: Effective for the District's year ending June 30,
2014.
GASB Statement No. 68, Accounting and Financial Reporting for Pensions: Effective for the District's
fiscal year ending June 30, 2015. Management believes that there will be a significant impact on
liabilities and net position when this statement is implemented; however, the amount of the impact has
not yet been determined.
GASB Statement No. 69, Government Combinations and Disposals of Government Operations:
Effective for the District's fiscal year ending June 30, 2015.
GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees:
Effective for the District's fiscal year ending June 30, 2014.
GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date, an amendment to GASB Statement No. 68: Effective simultaneously with GASB Statement
No. 68.
Adoption of accounting standards: The District implemented the provisions of GASB Statement No. 63
(GASB 63), Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and
Net Position, and GASB Statement No. 65 (GASB 65), Items Previously Reported as Assets and
Liabilities, for the year ended June 30, 2013. The implementation of GASB 63 resulted in the new
financial reporting presentation of deferred outflows of resources, deferred inflows of resources, and net
position. The implementation of GASB 65 applies to accounting and financial reporting for governmental
activities, business -type activities, proprietary funds and fiduciary funds. The implementation of GASB 65
resulted in net position being restated as of June 30, 2012.
The District also implemented GASB Statement No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements. The
purpose of this Statement is to incorporate into the GASB's authoritative literature certain accounting and
financial reporting guidance that is included in the various pronouncements issued on or before
November 30, 1989, which does not conflict with or contradict GASB pronouncements.
Note 2. Cash and Investments
The District's cash and investments consisted of the following at June 30, 2013:
Pooled cash and investments
Restricted:
Cash and investments
Cash and investments with fiscal agent
Total
12
$ 436002437
4,693,286
133222005
$ 103615,728
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 2. Cash and Investments (Continued)
Pooled cash and investments $ 43600,437
U.S. Treasury Securities 234992161
Money market accounts 31516,130
$ 10,615,728
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment
Risk Disclosures, as they relate to the pooled cash and investments, are reported in the annual report of
the City. The pooled cash and investments are unrated, and average maturity is 30 days or less.
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 or Maximum
Maximum Amount of Investment in
Authorized Investment Type Maturity Portfolio* One Issuer
U.S. Treasury Obligations
5 years
No limit
No limit
U.S. government-sponsored enterprise securities
5 years
No limit
No limit
Money market accounts
5 years
15%
10%
Local agency investment fund (LAIF)
Not applicable
$ 5070003000
No limit
* Excluding amounts held by bond trustees that are not subject to California Government Code
restrictions.
Interest rate risk: 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.
At June 30, 2013, the District had the following investment maturities:
Investment
Maturity
(In Years)
Investment Type Fair Value Less Than 1
Restricted investments:
U.S. Treasury Securities
13
$ 2,4997161 $ 2,4993161
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 2. Cash and Investments (Continued)
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 actual rating, as reported by Standard & Poor's, as
of year-end for each investment type:
Minimum Rating
Investment Type Rating Fair Value AA
Restricted investments:
U.S. Treasury Securities
None $ 224993161 $ 2,4993161
As of June 30, 2013, none of the District's restricted cash and investments or restricted cash and
investments with fiscal agents were subject to concentration of credit risk or custodial credit risk.
Note 3.
Capital Assets
At June 30,
2013, the District's
capital
assets consisted of the following:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Site improvements
Total capital assets, being depreciated
Less accumulated depreciation:
Site improvements
Total accumulated depreciation
Total depreciable assets, net
Total capital assets, net
Balance Balance
June 30. 2012 Additions Deletions June 30. 2013
$ 13,927,338 $ 206,614 $ - $ 14,133,952
13,927,338 206,614 - 14,133,952
47
47
47,580 - - 47,580
(1,903) (1,903) - (3,806)
(1,903) (1,903) - (3,806)
45,677 (1,903) - 43,774
$ 13,973,015 $ 204,711 $ - $ 14,177,726
Note 4. Long -Term Debt
The District had the following long-term liabilities at June 30, 2013:
Balance Classification
July 1, 2012 Balance Due Within Due In More
As Restated Additions Deletions June 30, 2013 One Year Than One vear
Governmental Activities
Certificates of Participation:
Series 2007 $ 15,490,000 $
- $ (60,000)
$ 15,430,000 $
90,000 $ 15,340,000
Less discount (59,716)
- 4,614
(55,102)
- (55,102)
Total Certificates
of Participation $ 15,430,284 $
- $ (55,386)
$ 15,374,898 $
90,000 $ 15,284,898
On December 12, 2007, the District issued $15,525,000 in Certificates of Participation (the Certificates) 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
District for the use and occupancy of the Aquatic Center and Sports Complex.
14
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 4. Long -Term Debt (Continued)
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, and which approximates the effective interest
method, for government -wide financial statement purposes. This issuance is composed of $6,000,000 in
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 semiannually on
October 1 and April 1 at rates ranging from 4.00 percent to 4.60 percent for the serial Certificates and
4.75 percent for the term Certificates.
The total principal of $15,430,000 and interest of $12,213,503 remain to be paid on the Certificates as of
June 30, 2013. For the current year, principal and interest paid on the Certificates was $771,051. The
outstanding balance of the Certificates was $15,430,000 at June 30, 2013.
Debt service for the Certificates is as follows:
Year Ending June 30,
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
Total
Interest Total
$ 903000
$ 7087051
$ 7982051
1203000
7037851
8232851
1503000
6987451
848,451
1853000
6917752
8762752
2202000
683,651
9032651
136553000
322437600
438982600
237703000
22765,545
535352545
432053000
1,962,996
631672996
61035,000
755,606
6,790,606
$ 15,430,000
$ 12,213,503
$ 27,643,503
15
Required Supplementary Information (Unaudited)
Santa Clarita Open Space Preservation District
Budgetary Comparison Schedule
For the Year Ended June 30, 2013
Revenues:
Special assessments
Charges for services
Investment income
Other revenue
Total revenues
Expenditures:
Current:
General government
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing uses
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 1,866,941
$ 1,866,941
$ 11908,826 $
41,885
-
-
23000
21000
89500
46,740
20,137
(26,603)
-
-
20,000
20,000
1,956,441
1,913,681
1,950,963
37,282
427,026 1,827,490 12808,040 19,450
- 306,120 206,614 99,506
60,000
60,000
60,000
711,051
711,051
711,051 -
1,198,077
2,904,661
2,785,705 118,956
758,364 (990,980) (834,742) 156,238
Transfers out (10,865) (12,657) (12,657) -
Total other financing uses (105865) (12,657) (12,657) -
Net change in fund balance $ 747,499 $ (1,003,637) (847,399) $ 156,238
Fund balance, beginning of year 11,506,330
Fund balance, end of year $ 10,658,931
See Note to Required Supplementary Information.
16
Santa Clarita Open Space Preservation District
Note to Required Supplementary Information
Budgetary Information
Annual budgets are adopted on a basis consistent with U.S. GAAP for all governmental funds, except that
encumbrances are shown in the year incurred for budgetary purposes. All annual appropriations lapse at
fiscal year-end.
On or before the last day in January of each year, all operational units submit requests for appropriations
to the city manager for budget preparation purposes. Before April 30, the proposed budget is presented to
the City Council for review. The City Council holds public hearings and a final budget must be prepared
and adopted no later than June 30.
The appropriated budget is prepared by fund, function and department. The City's department heads,
with approval of the city manager, may make transfers of appropriations within a department and between
departments within a fund. The legal level of budgetary control (i.e., the level at which expenditures may
not legally exceed appropriations) is the fund level.
Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are
recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as
an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or
liabilities, encumbrances outstanding at year-end are reported as restricted fund balance. Unexpended
appropriations lapse at year-end and at June 30, 2013. As of June 30, 2013, there are no outstanding
encumbrances.
17
City of Santa Clarita
Air Quality Improvement Fund
Financial and Compliance Report
Year Ended June 30, 2013
McGladrey
Assurance = Tax „ Consulting
Contents
Independent Auditor's Report on the Financial Statements and
Required Supplementary Information 1-2
Basic Financial Statements
Balance sheet 3
Statement of revenues, expenditures and changes in fund balance 4
Notes to financial statements
Required Supplementary Information
Budgetary information
5-6
Independent Auditor's 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 8-9
McGladrey
McGladrey LLP
Independent Auditor's Report on the Financial Statements
and Required Supplementary Information
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita
Santa Clarita, CA
Report on the Financial Statements
We have audited the accompanying financial statements of the Air Quality Improvement Special Revenue
Fund (Fund) of the City of Santa Clarita (City) as of and for the year ended June 30, 2013, and the related
notes to the financial statements, which collectively comprise the Fund's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion 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 from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Fund as of June 30, 2013, and the respective changes in financial position for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
Member of the RSM l ntematlanal netwark of In dependentaccaunting, tax and cons a Ring firms.
Emphasis of a Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not,
present fairly the financial position of the City as of June 30, 2013 and the changes in its financial position
for the year then ended in conformity with accounting principles generally accepted in the United States of
America. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary
comparison information as listed in the table of contents 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 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.
Management has omitted the Management's Discussion and Analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 29,
2014, on our consideration of the Fund's internal control over financial reporting and on our tests 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.
Alej* zG�
Irvine, CA
January 29, 2014
Basic Financial Statements
City of Santa Clarita Air Quality Improvement Fund
Balance Sheet
June 30, 2013
Assets
Cash and Investments $ 104,684
Interest Receivable 292
Due From South Coast Air Quality Management District 55,100
Total assets $ 160,076
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ 80,743
Total liabilities 80,743
Fund Balance
Restricted
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
3
79,333
79,333
$ 160,076
City of Santa Clarita Air Quality Improvement Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended June 30, 2013
Revenues
Assembly Bill 2766 revenues $ 212,500
Investment loss, net (311)
Total revenues 212,189
Expenditures
Administrative 10,555
Air quality improvement program 165,099
Total expenditures 175,654
Net change in fund balances 36,535
Fund
balances,
beginning of year
42,798
Fund
balances,
end of year
$ 79,333
See Notes to Financial Statements.
City of Santa Clarita Air Quality Improvement Fund
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies
Basis of presentation: The Air Quality Improvement Fund's (the Fund) financial statements are prepared
in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP).
The Fund is presented as a Special Revenue Fund of the City of Santa Clarita (the City). The
Governmental Accounting Standards Board (GASB) is the acknowledged standard-setting body for
establishing accounting and financial reporting standards followed by governmental entities in the United
States.
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity with a self -balancing set of accounts. Monies received under Assembly Bill 2766
(AB 2766) are recorded in the Fund. AB 2766 authorizes the South Coast Air Quality Management
District (SCAQMD) to impose an annual vehicle registration fee and to distribute a portion of the collected
revenues to all local jurisdictions within the South Coast Air Basin. These revenues are to be used solely
to reduce air pollution from motor vehicles by implementing new programs and studies necessary for the
implementation of the California Clean Air Act.
Fund financial statements: Governmental fund financial statements include a balance sheet and a
statement of revenues, expenditures and changes in fund balance.
The Fund is accounted for on a spending or "current financial resources" measurement focus and the
modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included
on the balance sheet. The statement of revenues, expenditures and changes in fund balance present
increases (revenues and other financing sources) and decreases (expenditures and other financing uses)
in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the
accounting period in which they become both measurable and available to finance expenditures of the
current period.
Revenues are recognized as soon as they are both measurable and available. Revenues are considered
to be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. The primary revenue sources are revenues associated with AB 2766 and
interest revenue, which are measurable and considered to be available if they are collected within 90
days of the end of the current fiscal period. Expenditures are recorded in the accounting period in which
the related fund liability is incurred. However, debt service expenditures are recorded only when payment
is due.
Deferred inflows of resources of intergovernmental revenues arise when potential revenues do not meet
both the "measurable" and "available" criteria for recognition in the current period. Deferred inflows of
resources also arise when the government receives resources before it has a legal claim to them. In
subsequent periods when both revenue recognition criteria are met or when the government has a legal
claim to the resources, the deferred inflows of resources are removed from the balance sheet and
revenue is recognized.
Cash and investments: The Fund's cash balance was pooled with various other City funds for deposit
and investment purposes. The City's treasury is responsible for the cash management of the Fund's cash
balance, which pools available cash for investment purposes. The 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. Each City fund owns a share of pooled cash and
investments, which are separately maintained, and interest income was apportioned based on its average
month-end cash balances to the total of the pooled cash and investments.
City of Santa Clarita Air Quality Improvement Fund
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Fund balance and spending policy: In the Fund's financial statements, fund balance is classified as
follows:
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. Expenditures as they are
incurred are applied against these restricted net assets.
Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions. These estimates and assumptions affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition,
estimates affect the reported amount of expenses. Actual results could differ from these estimates and
assumptions.
Note 2. Cash and Investments
The Fund's cash and investments at June 30, 2013 is $104,684.
The deposit and investment disclosures required by GASB Statement No. 40, Deposit and Investment
Risk Disclosures, are reported in the annual report of the City. The pooled cash and investments is
unrated, and average maturity is 30 days or less.
Note 3. Contingencies
The Fund receives monies from the SCAQMD that are subject to review and audit by the SCAQMD.
Although such audits could result in disallowed expenditures under terms of the program's guidelines, it is
believed that any repayments resulting from disallowances will not be material.
Required Supplementary Information
City of Santa Clarita Air Quality Improvement Fund
Required Supplementary Information
Budgetary Information
The City adopts an annual budget on a basis consistent with generally accepted accounting principles in
the United States of America and utilizes an encumbrance system as a management control technique to
assist in controlling expenditures and enforcing revenue provisions. The appropriated budget is prepared
by 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 following is the budget comparison schedule for the Fund for the year ended June 30, 2013:
City of Santa Clarita Air Quality Improvement Fund
Required Supplementary Information
For the Year Ended June 30, 2013
Variance With
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Assembly Bill 2766 revenues
Investment income
Total revenues
Expenditures
Administrative
Air quality improvement program
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Uses
Transfers out
Total other financing uses
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
$ 206,367 $ 206,367 $ 212,500
100 100
11
6,133
(411
206,467 2063467 212,189 53722
172330
183760
10555
83205
222500
2253729
165,099
603630
392830
2443489
1753654
683835
166,637 (383022) 362535 743557
(166,537) (323920) 323920
(166,537) (32,920) - 32,920
$ 100 $ (70,942) 36,535 $ 107,477
42,798
$ 79,333
McGladrey LLP
McGladrey
Independent Auditor's 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, CA
We have audited, in accordance with the 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, the financial statements of the Air Quality
Improvement Special Revenue Fund, of the City of Santa Clarita, California (the City), as of and for the
year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise
the Air Quality Improvement Special Revenue Fund's (Fund) basic financial statements, and have issued
our report thereon dated January 29, 2014, which included an emphasis of a matter paragraph
modification indicating the financial statements present only the Fund and do not purport to, and do not,
present fairly the financial position of the City as of June 30, 2013 and the changes in its financial position
for the year then ended in conformity with accounting principles generally accepted in the United States of
America..
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Fund's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, we do
not express an opinion on the effectiveness of the Fund's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during out audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Member of the RSM l ntem at lonal network of indefsendent accounting, tons and cons uRlrg firms.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, including certain provisions of Assembly Bill 2766, Chapter 1705 (Health
and Safety Code Sections 44220 through 44246), 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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Irvine, CA
January 29, 2014