HomeMy WebLinkAbout2015-01-27 - AGENDA REPORTS - FY13-14 CAFR (2)Agenda Item: 12
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: January 27, 2015
SUBJECT: FISCAL YEAR 2013-14 COMPREHENSIVE ANNUAL FINANCIAL
REPORT AND OTHER RELATED REPORTS
DEPARTMENT: Administrative Services
PRESENTER: Darren Hetndndez
RECOMMENDED ACTION
City Council approve the Comprehensive Annual Financial Report and other related reports for
fiscal year ending June 30, 2014.
BACKGROUND
The City's independent audit firm, McGladrey LLP, has completed the City's annual audit for
fiscal year ending June 30, 2014. 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, 2014.
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.
�+���nu
W I F ill
Pa Packet Pg. 71
In addition, the following reports were prepared for the fiscal year ending June 30, 2014, 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
Copies of the reports were provided to the City Council under a separate memo.
ALTERNATIVE ACTION
No feasible alternative action has been identified by staff.
FISCAL IMPACT
None.
ATTACHMENTS
Air Quality Improvement Fund 6-30-14 (available in the City Clerk's Reading File)
Appropriations Limit Calculation 6-30-14 (available in the City Clerk's Reading File)
Compliance Report (A-133) Single Audit 6-30-14 (available in the City Clerk's Reading File)
Comprehensive Annual Financial Report 6-30-14 (available in the City Clerk's Reading File)
Open Space Preservation District 6-30-14 (available in the City Clerk's Reading File)
Report to the Honorable Mayor and Members of the City Council (SAS 114) (available in the
City Clerk's Reading File)
Transit Enterprise Fund 6-30-14 (available in the City Clerk's Reading File)
Page 2
Packet Pg. 72
omprenen
Financia
-W.
.r_a-:T;
i
\1.
JL
mw
SXNTA
Cly w��
O FIE
VOUR CMIILP�NG
D
41
GROUPEE!
StG W FR • a
I
"® OG2O 194 r
75 DECEM��EI f
ti
I Y—
"1 a
City of Santa Clarita, California
' Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
PREPARED BY THE DEPARTMENT OF ADMINISTRATIVE SERVICES
'
CITY OF SANTA CLARITA, CALIFORNIA
City of Santa Clarke
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2014
Passe
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting .......................................... ix
Officials of the City of Santa Clarita......................................................................................... x
OrganizationChart ............................................................................................................. xi
Map of the City of Santa Clarita............................................................................................. xii
FINANCIAL SECTION
Independent Auditor's Report ................................................................................................1
Management's Discussion and Analysis (Unaudited)...................................................................
3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position...............................................................................................
13
Statement of Activities...................................................................................................
14
Fund Financial Statements:
Governmental Fund Financial Statements
BalanceSheet........................................................................................................... 16
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:
Statementof Net Position...................................................................................................................... 24
Statement of Revenues, Expenses and Changes in Net Position........................................................ 25
Statement of Cash Flows............................................................................................. 26
Fiduciary Fund Financial Statements:
Statement of Net Position (Deficit)...................................................................................................28
Statement of Changes in Net Position (Deficit).................................................................. 29
Notes to Financial Statements........................................................................................... 31
City of Santa Clarita
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30. 2014
Pane
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Schedules of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual:
GeneralFund.............................................................................................................. 77
Bridge and Thoroughfare Special Revenue Fund.................................................................. 78
Public Library Special Revenue Fund................................................................................ 79
Landscape Maintenance District #1 Special Revenue Fund .................................................... 80
Schedule of Funding Progress...........................................................................................
81
Notes to Required Supplementary Information.......................................................................
82
Supplementary Information:
Non -Major Governmental Funds:
Description of Nonmajor Governmental Funds.....................................................................
83
Combining Balance Sheet...............................................................................................
86
Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................
94
Schedules of Revenues, Expenditures and Changes in Fund Balance --Budget and Actual:
Developer Fees Special Revenue Fund..........................................................................102
Bikeway Special Revenue Fund....................................................................................103
Gas Tax Special Revenue Fund....................................................................................104
Proposition A Special Revenue Fund.............................................................................105
Special Assessment Special Revenue Fund.....................................................................106
State Park Special Revenue Fund.................................................................................107
TDA Special Revenue Fund.........................................................................................108
Traffic Safety Special Revenue Fund..............................................................................109
CDBG Special Revenue Fund......................................................................................110
AQMD Special Revenue Fund......................................................................................111
Stormwater Special Revenue Fund................................................................................112
Surface Transportation Program Special Revenue Fund .....................................................113
BJA Law Enforcement Special Revenue Fund..................................................................114
Supplemental Law Grant Special Revenue Fund...............................................................115
HOME Special Revenue Fund......................................................................................116
Library Facilities Fees Special Revenue Fund..................................................................117
Public Education and Government Special Revenue Fund...................................................118
Proposition C Special Revenue Fund.............................................................................119
Federal Grants Special Revenue Fund...........................................................................120
Measure R Special Revenue Fund.................................................................................121
Tourism Marketing District Special Revenue Fund.............................................................122
OSPD Special Revenue Fund.......................................................................................123
Miscellaneous Grants Special Revenue Fund...................................................................124
Park Dedication Special Revenue Fund..........................................................................125
Housing Successor Agency Special Revenue Fund.........................................................................126
Tourism Marketing Bureau Special Revenue Fund..........................................................................127
General Capital Projects Fund..........................................................................................................128
City of Santa Clarita
' Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2014
'
Net Position by Component................................................................................................142
Page
FINANCIAL SECTION (Continued)
' Public Financing Authority Capital Projects Fund.............................................................................129
Public Financing Authority Debt Service Fund..................................................................................130
' Internal Service Funds:
Description of Internal Service Funds...............................................................................131
Combining Statement of Net Position...............................................................................132
Combining Statement of Revenues, Expenses and Changes in Net Position..............................133
Combining Statement of Cash Flows................................................................................134
Fiduciary Funds:
Description of Fiduciary Funds........................................................................................135
Combining Statement of Assets and Liabilities—Agency Funds...............................................136
Combining Statement of Changes in Assets and Liabilities—Agency Funds ...............................138
165
STATISTICAL SECTION (Unaudited)
Table of Contents............................................................................................................141
'
Net Position by Component................................................................................................142
Changesin Net Position....................................................................................................144
Fund Balances of Governmental Funds.................................................................................148
Changes in Fund Balances of Governmental Funds.................................................................150
Assessed Values and Actual Values of Taxable Property ...........................................................152
Assessed Values and Actual Values of Taxable Property—Redevelopment Agency .........................154
Assessed Values—Taxable Property....................................................................................156
Assessed Values—Use Category Summary ...........................................................................158
Direct and Overlapping Property Tax Rates............................................................................160
Principal Property Taxpayers..............................................................................................162
Property Tax Levies, Tax Collections and Delinquencies ...........................................................163
'
Top Property Owners Based on Net Values—Successor Agency ......................................164
Project Area Assessment Appeals Summa and Tax Collection Histo Successor Agency
1 PP Summary rY— 9 Y .............
165
Charge Detail Report for CFD 2002-1 (Valencia Town Center)—Successor Agency .........................166
Ratio of Outstanding Debt by Type.......................................................................................168
Ratio of General Bonded Debt Outstanding............................................................................170
Direct and Overlapping Bonded Debt....................................................................................171
Legal Debt Margin Information............................................................................................172
' Pledged Revenue Coverage... ...... ....................................................................................
174
Demographic and Economic Statistics..................................................................................175
PrincipalEmployers..........................................................................................................176
Full -Time and Part -Time City Employees by Function...............................................................177
'
Operating Indicators by Function.........................................................................................178
Capital Asset Statistics by Function......................................................................................179
City of
SANTA CLARITA
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
t Phone: (661) 259-2489 a FAX: (661) 259-8125
u .santa-clarita.com
1 December 22, 2014
' Honorable Mayor, Mayor Pro Tem, and City Councilmembers:
' The Comprehensive Annual Financial Report (CAFR) of the City of Santa Clarita for
fiscal year ended June 30, 2014 is hereby submitted, in accordance with Chapter 2.12 of
the City of Santa Clarita Municipal Code. This report provides the City Council and the
' public with an understanding of the financial condition of the City of Santa Clarita as of
June 30, 2014.
This report consists of management's representations concerning the finances of the City
of Santa Clarita. As such, management assumes full responsibility for the completeness
and reliability of the information contained in this report. To provide a reasonable basis
' for making these representations, management of the City has established a
comprehensive framework of internal controls that is designed to protect the City's assets
from loss, theft, or misuse, and to compile sufficient reliable information for the
preparation of the City's financial statements. Because the cost of internal controls
should not outweigh their benefits, the City's comprehensive framework of internal
controls has been designed to provide reasonable, rather than absolute, assurance that the
' financial statements are free from material misstatement. To the best of our knowledge
and belief, the enclosed data is accurate in all material respects and reported in a manner
designed to present fairly the financial position and results of operations of the various
funds of the City of Santa Clarita.
State Law requires the City to prepare an annual financial report. This report fulfills that
obligation. 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, 2014. 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
64.41 square miles. With a population of 209,130, the City is the 18`h 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 337 acres, over 7,900 acres of City -owned open space, and
more than 96 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, the inaugural Wings for Life World Run, 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 terns, with elections held bi-annually. The
position of Mayor is selected by the Councilmembers. The City Council is responsible,
among other things, for passing ordinances, adopting the budget, setting policy, and
appointing committees. The City Council appoints the City Manager, who is responsible
for implementing the policies of the Council, overseeing the day-to-day operations of
City government, and for appointing and managing the various Department Heads. The
City Council also appoints the City Attorney.
The City provides, either directly or under contract, a full range of municipal services
including public safety, construction, maintenance of streets and other infrastructure,
public libraries, public works, parks and recreation, community development, and
cultural events. The City also provides services through the Santa Clarita Public
Financing Authority (PFA), 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. A separate component unit report for the Santa Clarita
PFA is also available.
The City operates on a fiscal year basis which begins July I and ends June 30. The
ii
City's Municipal Code requires the City Manager to prepare a budget and present it to the
City Council each year. The budget process begins by January of each year and is carried
out under the direction of the City Manager in cooperation with the various City
departments. The proposed operating and capital budget is submitted by the City
Manager to City Council for adoption by June 30, to take effect at the beginning of the
fiscal year on July 1. Budgetary control for the City is maintained through its accounting
systems. Once adopted, the budget may be amended throughout the year as necessary.
Budgetary control is established at the category level within each fund.
LOCAL ECONOMY
The City of Santa Clarita is one of Southern California's most desirable places to live and
to do business. City officials pride themselves on the organization's ability to balance the
needs of locally based companies with those of the community, resulting in an unmatched
quality of life.
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 2013-2014 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 5.3
percent, compared to 8.7 percent for Los Angeles County as of July 2014. Targeted
employment sectors in Santa Clarita include aerospace, manufacturing, biomedical,
I entertainment, and technology. This past year we welcomed several new retailers to
Westfield Valencia Town Center including Lorna Jane, Keene and H & M. Toppers
Restaurant opened in Valencia and several new retailers opened in Old Town Newhall
' and at the Plaza at Golden Valley.
Retail vacancy rates continue to hold at a low 6.2 percent, the same is true for industrial
' vacancy rates, currently at 5.5 percent. The largest area of potential growth in the City
continues to be in office space, which decreased to 10 percent in the 2"d Quarter of 2014
compared to 14 percent in the 2"d Quarter of 2013.
The City's Film Office enjoyed its best year ever since 2002 in Fiscal Year 2013-2014
with an economic impact of $33.5 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 like "NCIS", "Switched at Birth",
"Chasing Life", "Justified", "Wipeout", "Jennifer Falls", "Franklin and Bash", and
"Utopia" are based in Santa Clarita and regularly film on location within the City.
Tourism continues to be one of the City of Santa Clarita's largest economic generators
contributing more than $2.8 million to the general fund from Transient Occupancy Tax
(TOT) in Fiscal Year 2013-14. The fourth year of the Tourism Marketing District
(TMD), a collaborative assessment program and partnership between the City and five
ur
local hotels, grew upon previous success and collected over $514,906 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: Cal South State Soccer Cup, California Super States Chess Championships,
USSSA Baseball, Triple Crown Softball, NAIA Baseball National Championship, and
the Bonspiel Curling Tournament. '
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 beyond 2014. 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, has issued more than 12,800 vouchers, saving 500+ businesses
more than $479 million in taxes, resulting in thousands of people being hired 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 70 percent of adults over age 25 and
older having attained some college or higher, as compared to Los Angeles County, which
averages 56.5 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.
iv
Property tax in -lieu of Vehicle License Fee (PT -VLF) experienced growth in Fiscal Year
2013-14 due to annexations from 2012.
Millions Major Tax Revenues
35
30
25
20
15
10
2009-10 2010-11 2011-12 2012-13 2013-14
Fiscal Year
•Sales Taxes
■Property Taxes
OPT -VLF
OTransient Occupancy Taxes
SReal Property Transfer Tax
The City provides necessary funding for essential services for City Council and
community identified priorities, while taking steps to ensure the City remains in good
financial health. Annually, the City prepares extended forecasts for the General Fund to
determine the future impact of current actions. These forecasts indicate a stable General
Fund over the next few years, primarily due to projected marginal increases in sales,
property taxes, and property taxes in lieu of VLF. However, because the City of Santa
Clarita has practiced smart growth in successful financial times, the City is well prepared
for times when revenue projections do not include growth.
The City maintains a General Fund balance sufficient to provide for various identified
' contingencies, as well as an established operating reserve. In addition, the General Fund
contributes annually to the City's facilities replacement fund, which provides for major
maintenance and replacement of infrastructure and capital improvements. The City's
Capital Improvement Program (CIP) is a component of the annual budget process that
addresses the City's short- and long-term capital needs. Just as important, the CIP
emphasizes a plan of action that effectively maintains the existing infrastructure to a
' sound physical standard, as well as providing new facilities to support current growth and
complement new development.
' MAJOR MILESTONES IN FISCAL YEAR 2013-2014
Z• In the last year, the City of Santa Clarita was named "one of the best places to live
in the Country" by Livability.com. The City also received a prestigious Helen
1 v
Putnam Award from the League of California Cities for the City's Granada Villa
Neighborhood Committee.
❖ The City of Santa Clarita continues to maintain historically low crime rates, '
maintaining its position as the 10'h safest City in the nation according to the FBI.
Santa Clarita's three -pronged approach - education, enforcement, and
collaboration - has proved to be very successful. The Sheriff's 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. The Graffiti Task Force removed 7,047 tags throughout the City,
arrested 80 vandals, and collected restitution from vandals, which helped fund 68
beautification projects in areas where graffiti was removed. ,
The City continues to work with the community, CEMEX, and State and Federal
legislators to prevent a 56 -million ton mega -mine in Soledad Canyon. Major
milestones in the last year included Senator Feinstein's support and co-
sponsorship of Federal legislation, which was supported by the State and saw a
Senate hearing of the bill.
❖ The City of Santa Clarita's Film Office set new film records in Fiscal Year 2013-
2014 with 1,370 film days representing an estimated $33.5 million in local
economic impact from location filming alone. The Santa Clarita Film Office
recorded 1,370 film days and 531 permits, which represents an 28 percent
increase in film days when compared to the City's previous record year in 2012-
2013. The economic impact of local filming increased by 31 percent from 2012-
2013 when the estimated economic impact was $25,690,500.
❖ 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's Drug
Free Youth In Town (DFYIT) program continues to grow, with thousands of
teens pledging to stay sober and engaged in meaningful, healthy activities. In the
program's second year, membership increased by 47 percent and of those tested
in random drug tests, 99 percent were drug-free. Most impressive, documented
deaths from heroin overdose have decreased drastically, from 16 in 2012 to four
in 2013.
Maintaining the City's infrastructure and adding new amenities continues to be a
focus for the City. In the last year, the City opened the Roundabout in Old Town
Newhall, began construction on the widening of the bridge on McBean Parkway,
began construction on phase three at Central Park to add two new sports fields
and 170 parking spaces, completed the McBean Park and Ride Project adding 282
parking spaces, five bus bay platforms, public art and landscaping at the McBean
Regional Transit Center.
vi
❖ The Santa Clarita Public Library continues to thrive in its third year of operation.
The three branches saw nearly 900,000 patron visits, issued 28,000 new library
cards, circulated more than 1.4 million books and materials, and the Friends of
Santa Clarita Public Library raised more than $43,000 for Library materials and
free programming.
The City completed the Sand Canyon and SR 14 beautification project, enhancing
one of Santa Clarita's busiest eastern gateways with low-water use landscaping.
The City also enhanced medians on Soledad Canyon Road, Sierra Highway, Via
Princessa, Railroad Avenue and Golden Valley Road with low-water use
landscaping.
❖ Santa Clarita remained one of Southern California's best event destinations,
serving as the only City to host back-to-back starts of the Amgen Tour of
California. The City also worked with community partners to host the Thursdays
at Newhall event series, which includes Art Slam, J.A.M. Sessions, and Senses.
The City's Cowboy Festival in April also enjoyed its largest attendance to date, in
addition to strong media coverage locally, regionally and nationally in Los
Angeles Magazine, the Antelope Valley Press, and Westways, among others.
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, 2013. This was the 25th 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 19 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, in particular, Finance Manager,
Carmen Magana; Financial Analysts, Susan Cromsigt, Mary Ann Ruprecht, Jan Downey,
vii
Paul Chung, Brittany Houston, 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,
a
arren Hemandez
Deputy City Manager
DH:cm
viii
G�9
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, 2013
Executive Director/CFA
ix
OFFICIALS OF THE CITY OF SANTA CLARITA
As of June 30, 2014
City Council
Laurene Weste
MAYOR
Marsha McLean
MAYOR PRO TEM
Bob Kellar
COUNCILMEMBER
TimBen Boydston
COUNCILMEMBER
Dante Acosta
COUNCILMEMBER
City Officials
Ken Striplin
CITY MANAGER
Frank Oviedo
ASSISTANT CITY MANAGER
Darren Hernandez
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
x
City of Santa Clarita
ORGANIZATION CHART
As of June 30, 2014
Santa Clarita Residents
City Council
City Manager
Administrative
Community
Public
Services
Development
Works
Finance
Planning
Engineering
Technology Services
Community Preservation
Traffic Engineering
Special Districts
Redevelopment
Building & Safety
Transit
Community Dev. Block Grant
General Services
Public Library
Economic Development
I
Environmental Services
Urban Forestry
xi
Parks, Recreation &
Recreation
Parks
Community Services
Parks Planning & Open Space
City Manager's
Office
Sheriffs Department
Fire Protection
Human Resources
Purchasing
Risk Management
City Clerk
® `' SANTA CLARITA
� r
•�4
A �nx
.v
r
S .x..
n�
xn
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, 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, 2014, 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.
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 auditors 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 City'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 City'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, 2014, 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 International network of Independent aaoundnq tax and emnuhtngfums.
Emphasis of Matter
As discussed in Note 12 to the financial statements, the beginning net position of the governmental
activities has been restated to correct misstatements as of June 30, 2013. We also audited the
adjustments described in Note 12 that were applied to restate the 2013 financial statements. In our
opinion, such adjustments are appropriate and have been properly applied. 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 management's
discussion and analysis, budgetary comparison information and schedules 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 combining 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.
Irvine, CA
December 22, 2014
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2014
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, 2014. 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
$1.04 billion. Of this amount, $86.2 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 $40.4 million, net of prior year restatements. Net
position of the business -type activities increased by $6.2 million, or 7.8 percent, and the net
position of the governmental activities increased by $34.2 million, net of prior year restatements
(Table 2).
The net capital assets of the City's governmental activities increased by $60.8 million, or
7.9 percent, over last fiscal year. The increase was in part due to a restatement totaling
$47.8 million for capital assets. This included $48.5 million for infrastructure, land and site
improvements that were annexed from Los Angeles County; a reduction of $8.2 million for
duplication of capital assets; and an increase of $7.5 million for storm drain infrastructure not
recorded at Governmental Accounting Standards Board (GASB) Statement No. 34
implementation. See Note 12 to the financial statements for additional information on the
restatement.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $188.5 million. This represents an increase of $30.0 million as compared to the
prior year.
Within governmental funds, the General Fund reported a fund balance of $108.9 million, an
increase of $14.6 million over the prior year.
USING THIS ANNUAL REPORT
The financial statements presented herein include all of the activities of the City of Santa Clarita and its
component unit using the integrated approach as prescribed by GASB 34. The three components of the
basic financial statements are as follows:
1) Government -Wide Financial Statements
The Government -Wide Financial Statements present the financial picture of the City from the
economic resources measurement focus using the accrual basis of accounting in a manner
similar to a private -sector business. These statements include all assets of the City (including
infrastructure) as well as all liabilities (including long-term debt).
See independent auditor's report.
USING THIS ANNUAL REPORT (CONTINUED)
2) Fund Financial Statements
The Fund Financial Statements include statements for each of the three categories of activities:
governmental, proprietary and fiduciary. For governmental activities, these fund statements tell
how these services were financed in the short term, as well as what remains for future spending.
Fund financial statements also report the City's operations in more detail than the
government -wide statements by providing information about the City's most significant funds and
other funds.
3) Notes to the Basic Financial Statements
The notes provide additional information necessary to enable the user to fully understand the
various financial statements.
In addition to the basic financial statements and notes, this report contains other supplementary
information.
REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS
The Statement of Net 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
financial health is improving or deteriorating. Other things to consider are non-financial factors, such as
changes in the economy due to external factors that would cause an increase or decrease in consumer
spending.
The Statement of Activities presents information relating to how the City's net 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.
See independent auditor's report. i
REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS
(CONTINUED)
Component Unit Activities — The City of Santa Clarita is the primary government unit to 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.
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. Since the focus of the governmental funds is narrower than that of the
government -wide financial statements, it is useful to compare the information presented for the
governmental funds with similar information presented for the governmental activities in the government -
wide financial statements. Reconciliation of the Fund Financial Statements to the Government -Wide
Financial Statements is provided to explain the differences created by this integrated approach.
The City reports governmental fund financial information within 33 governmental funds. The General
Fund, Bridge and Thoroughfare Fund, 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 29 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 -equipment replacement.
' 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.
See independent auditor's 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 a separate Statement of Net Position (Deficit) and a '
Statement of Changes in Net Position (Deficit). These activities were excluded from the City's other
financial statements because the City cannot use these assets to finance its operations. The City is
responsible for ensuring that the assets reported in these funds are used for their intended purposes. _
NOTES TO THE BASIC FINANCIAL STATEMENTS
The notes provide additional information that is essential to a full understanding of the data provided in
the government -wide and fund financial statements.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the comparison of budget and actual results for the major
governmental funds 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 $88.2 million, increasing from $952.9 million to
$1.04 billion inclusive of prior year restatements.
See independent auditor's report.
THE CITY AS A WHOLE (CONTINUED)
ASSETS:
Current and Other Assets
Capital Assets, net
Noncurrent Assets
TOTAL ASSETS
LIABILITIES.
Noncurrent Liabilities
Other Liabilities
TOTAL LIABILITIES
NET POSITION:
Net Investment in
Capital Assets
Restricted
TABLE 1
CITY OF SANTA CLARITA'S NET POSITION
Governmental Activities Business -Type Activities Total
2014 2013 2014 2013 2014 2013
$ 210,971,600
$ 182,284,566
$ 6,300,981 $ 7,628,301
$ 217,272,581
$ 189,912,867
830,373,009
817,323,716
83,296,545 76,561,407
913,669,664
893,885,123
21,254,919
15,581,487
21,255,919
15,561,487
1,062,599,528
1,015,169,769
89,597,526 85,189,708
1,152,197,054
1,099,359,477
82,004,957 72,211,285 26,714 - 82,031,671 72,211,285
26,169,470 22,704,246 2,920,056 3,792,965 29,089,526 26,497,231
108,174,427 94,915,531 2,946,770 3,792,985 111,121,197 98,708,516
799,926,613 786,025,874 83,296,545 76,561,407 883,223,158 862,587,281
71,643,713 68,521,940 - - 71,643,713 68,521,940
Unrestricted 82,854,775 65,706,424 3,354,211 3,835,316 86,208,986 69,541,740
TOTAL NET POSITION $ 954425,101 $ 920,254,238 $ 86,650,756 $ 80,396,723 $ 1,041,075,857 $ 1000,650,961
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, 2014, assets exceeded liabilities by $1.04 billion. The largest component of the City's net
position, 84.8 percent, is represented by its $883.2 million net investment in capital assets, less
accumulated depreciation and any related outstanding debt used to acquire the capital assets. These
capital assets are used to provide services to the citizens, and therefore are not available to finance
future operations. In addition, resources necessary to repay the related debt must be provided by sources
other than the capital assets, as the assets themselves cannot be used to satisfy these liabilities.
An additional portion of the City's net position, 6.9 percent, represents resources subject to external
restrictions on how they may be used. The remaining 8.3 percent of unrestricted net position,
$86.2 million, may be used to meet the City's ongoing obligations to citizens and creditors.
' Consistent with the prior year, at the end of the current fiscal year, the City is able to report positive
balances in both categories of governmental and business -type net position. Net position for
governmental activities increased by $81.9 million over the prior year. The increase was in part due to a
' restatement totaling $47.8 million for capital assets. This included $48.5 million for infrastructure, land and
site improvements that were annexed from Los Angeles County; a reduction of $8.2 million for duplication
of capital assets; and an increase of $7.5 million for storm drain infrastructure not recorded at GASB 34
implementation. The net result was an increase of $34.2 million to net position. The unrestricted net
' position of the business -type activities decreased by $481,105.
1 See independent auditor's report.
THE CITY AS A WHOLE (CONTINUED)
Governmental Activities
Revenues from governmental activities increased by $17.9 million, or 11.2 percent, due in part to an
increase in charges for services of $10.1 million, an increase in property tax revenues of $3.3 million, a
$2.1 million increase in investment income, and a $1.4 million increase in sales tax revenue. The cost of
all governmental activities this year was $138.4 million, an increase of 5.9 percent over the past year. As
shown in the Statement of Activities, the governmental activities expenditures were ultimately financed in
part by the taxpayers, as $52.6 million in revenues were generated by service revenues received from the
performance of these activities; another $19.4 million was received from government agencies and other
organizations that subsidized certain programs with operating grants and contributions; and another
$22.5 million in revenues was generated from capital grants and contributions. Overall, the City's
governmental program and general revenues amounted to $178.2 million, which funded the expenditures
and resulted in a $34.2 million increase in net position excluding restatements.
Program Revenues:
Charges ror seraces
Operating grants and comd5u8ons
Capital grants and Contributions
General Rewnues'.
Tams:
Property taxes
Other tams
Other
Total Rewnues
TABLE 2
CITY OF SANTA CLARITA'S CHANGES IN NET POSITION
Gowmmental Minaties Business -Type Activities Total
2014 2013 2014 2013 2014 2013
$ 52,632526 S 42,533,447
19,121,199 9,061,950
22,530,841 33585,797
35,652,080
32,341,369
45,092,120
42,557,327
2890,182
227,006
178,219,248
160,303,696
$ 7,587,497 S
6863,086 S
60,220,023 S
49,396,533
8,984,127
8,579,209
28,405,326
17,641,159
10804]47
8,513,238
33,335,588
42,099,035
-
-
35,652,090
32341,369
-
-
45,092,120
42,553,327
4,791
29,660
2,895,273
257,456
27,381162
23,985,193
205,60.410
184288,889
General gowmment
41,807,284
35,921,943
-
-
41,807,284
35,921,943
PUNIC seely
22,187,434
19,940,098
-
-
22,187,434
19,949098
Pudic wo*a
26,183,062
28,01,261
-
-
46103,862
28,651,261
Parks, recreation and Community saYses
22,55.301
21,009820
-
22,550,301
21,809,820
Community development
6,193,101
7,214,293
-
-
6193,101
7,214,293
Unelfocated infrastructure depreciation
17,561,539
15,163,864
-
-
17,561,539
15,163,804
Interest and fiscal charges
1872832
1992574
-
-
1,872,832
1,992,574
Transit
-
26,819,161
25,653,753
26,819,161
25,653,753
Total Expenses
138,356,353
139693853
26819,161
25,653,753
165,175,514
15.347,606
Irimase/Decrease in Net Position Before Transfers
39,882,895
29,609,843
562,001
(1.668,560)
40,424,8:6
27,941,283
Transfers
(5,692,032)
(5187,224)
5,692,032
5,187,221
Changes in Net Position
34170,863
24,422,619
6,254,033
3,518,681
40,424895
21,941,283
Net Position- Beginning of Year
920,254230
072,614,016
80,390,723
76,878,059
1,000,650,951
949,492,105
Restatements
-
(18,052,147)
(10,052,147)
Not Position- Beginning of Year as restated
920,254,238
854581899
0.396,723
76,878059
1000,850,961
931,439,958
Net Position - End of Year
954425,101
878,904,518
08,650,758
80,396,723
1041075,857
959301241
Restatements
41,269,720
41209,740
Net Position- End of Year, as Pleaded
6 954,425101
5 920254238
$ 86,650,756 $
80,396]27
_F 1,041,0]5,857
$ 1000850.961
Business -Type Activities
Business -type activities increased the City's net position by $6.3 million for the current year.
Business -type activities revenues increased by $3.4 million during the year for a total of $27.4 million in
revenues, not including the $5.7 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 $7 million. Related transit activity expenses increased by
$1.2 million.
See independent auditor's report.
THE CITY'S FUNDS
' The governmental funds reported a combined fund balance at the end of the current fiscal year of
$188.5 million, an increase of $30 million over the prior year. Approximately $84.3 million is restricted and
already committed for specific restricted purposes.
IThe total governmental fund balance includes the general fund balance of $108.9 million, which increased
by $14.6 million over the prior year. The General Fund is the chief operating fund of the City of Santa
Clarita. The fund balance increase of $14.6 million is due in part to an increase in tax revenues of
$5.5 million.
The unassigned fund balance of $45.7 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 a decrease of $3 million from the prior year due
primarily to a decrease in the issuance of Bridge and Thoroughfare credits to developers of
$3.3 million.
The Public Library Fund has realized an increase of $58,267 in its fund balance from the prior
year.
The Landscape Maintenance District's fund balance increased $2.4 million from the prior year
due in part to an increase in assessment revenues of $3.4 million.
' In addition to the major funds, the fund balances for the other governmental funds experienced an
aggregate increase of $15.9 million. The Housing Successor Agency fund received a transfer of $5 million
in bond proceeds from the Successor Agency to the City's former redevelopment agency as approved by
the Department of Finance. The fund balance in the Transportation Development Act fund increased by
$5.2 million due to reimbursements for prior year project expenditures.
The City's proprietary funds provide the same type of information found in the government -wide financial
1 statements, but in more detail. The total net position for the Transit Enterprise Fund increased over the
prior year by $6.3 million, or 7.8 percent. The unrestricted portion of the business -type activities net
position decreased by $481,105 from the prior year.
' The Internal Service Funds net position increased by $492,173, or 6.1 percent. The ending fund balance
for Internal Service Funds is $8.6 million, of which $8 million is unrestricted.
General Fund Budgetary Highlights
Comparison of the fiscal year 2013-2014 original (adopted) general fund budgeted expenditures and
transfers of $81.6 million to the final budgeted expenditures of $86.3 million results in a net increase of
$4.7 million.
Included in this net increase is $408,447 in committed purchase orders and contracts from the prior
June 30 balance, as well as $417,454 of prior fiscal year operating and capital improvement projects
approved for carryover into fiscal year 2013-2014. The resulting beginning budget balance was equal to
$82.4 million.
Original
Cont.
Encumbrances Beg.
Supplemental
Final
Budget+
Appropriations+
= Balance+
Changes=
Budget
$81,602,536 +
$417,454+
$408,447 = $82,428,437 +
$3,875,490 =
$86,303,927
1 See independent auditor's report.
THE CITY'S FUNDS (CONTINUED)
Comparing the beginning budget of $82.4 million with the final budget of $86.3 million indicates the
General Fund had supplemental budgetary appropriations of $3.9 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 $4,049,776.
Included in the net increase are a $1,500,000 increase in sales tax, $900,000 increase in development
revenues, $500,000 increase in property tax, $118,000 increase in Franchise Fees, and $100,000 in real
property tax transfers revenue.
At year-end, the City's actual revenues were $2.7 million more than the final budgetary estimates. Actual
expenditures were less than the final budgetary estimates by $8.3 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets '
The City had $913.7 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)
Governmental Activities Business -Type Activities Total
2014 2013 2014 2013 2014 2013
Land $ 125,250,547 $ 125,250,547 $ 15,087,880 $ 15,087,880 It 140,338,427 $ 140,338,427
Construction in progress 13,438,221 5,474,307 83,252 2,145,290 13,521,473 7,619,597 '
Infrastructure, net 609,950,994 604,144,548 - - 609,950,994 604,144,548
Depreciable site improvements, net 26,079,903 26,242,465 10,570,218 6,297,027 36,650,121 32,539,492
Depreciable buildings and
improvements, net 52,365,869 53,713,714 32,208,106 33,091,453 84,573,975 86,805,167 ,
Depreciable equipment, net 3,287,475 2,498,135 25,347,089 19,939,757 28,634,564 22,437,892
TOTALS $ 830,373,009 $ 817,323,716 $ 83,296,545 $ 76,561,407 $ 913,669,554 $ 893,885,123
Major capital asset events during the year included: '
• Infrastructure additions totaling $24.8 million that included $11.4 million for pavement projects
and $6.3 million for median construction and refurbishments. '
• A restatement of $47.8 million in governmental activities capital assets. More detailed information
about the restatement of capital assets is presented in Note 12 to the financial statements.
• Equipment additions in the Transit Enterprise Fund of $8.9 million for buses. '
Additional information on the City's capital assets can be found in Note 7 to the financial statements.
See independent auditor's report. '
10
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Debt Administration
At year-end, the City's total debt amounted to $42.7 million in bonds, notes, capital leases, contracts,
claims payable and compensated absences as shown in Table 4. A summary of debt activity for the year
follows.
TABLE 4
CITY OF SANTA CLARITA'S OUTSTANDING DEBT
Governmental Activities Business -Type Activities Total
2014 2013 2014 2013 2014 2013
Refunding Certificates of
Participation, net
$ 9,323,138
$ 10,480,549
$ - $ - $ 9,323,138
$ 10,480,549
Certificates of Participation
15,291,374
15,379,349
- - 15,291,374
15,379,349
Lease revenue Bonds
12,002,622
12,316,280
- - 12,002,622
12,316,280
Contract and Leases
154,705
201,879
- - 154,705
201,879
Loans
580,000
810,000
- - 580,000
810,000
Compensated Absences
3,197,040
2,864,131
66,390 62,032 3,263,429
2,926,163
Gains Payable
2,157,763
1,114,117
- - 2,157,763
1,114,117
TOTAL
$ 42,706,642
$ 43,166,305
$ 66,390 $ 62,032 $ 42,773,031
$ 43,228,337
The City's governmental activities had $42.8 million in debt at year-end. Governmental activities long-term
debt decreased overall by $459,663 during the year. Principal payments totaled $1.8 million. The
increase in claims payable to $2.2 million is in part due to a pending settlement of litigation and an
increase in workers' compensation claims.
' No new debt related to business -type activities was issued or refinanced during the current fiscal year.
During the fiscal year ended June 30, 2014, 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 percent of its adjusted assessed valuation. The debt limitation for the City as of June 30, 2014 was
$926,176,818. The calculation of the debt limitation is included in the statistical section.
Additional information on the City's debt can be found in Note 8 to the financial statements
' See independent auditor's report.
11
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 signs of recovery in the economy, such as a declining unemployment rate, an increase in
sales tax revenue, and a recovering housing market. General Fund revenues are back at pre -recession
levels; however, it will take more time to recover our cumulative losses in revenues since the recession
hit.
• General Fund sales tax revenue continues to be the largest revenue source to operate general
governmental functions, accounting for 35.54 percent, or $33.5 million, as projected in the 2014-
2015 budget. This is 1.3 percent higher than 2013-2014 receipts.
• Property tax revenues account for 30.7 percent of the General Fund budget, or $29 million, in
2014-2015. 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 2014-2015 are $90.3 million, and operating and capital
expenditures are budgeted at $90.5 million. The City's 2014-2015 operating and capital budget for all
funds is $223 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 2014-2015 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 2014-2015 budget can be obtained by contacting the City Finance Division or visiting the web at
www.santa-clarita.com/citvhall/departments/cmo/citybudge.
See independent auditor's report.
12
City of Santa Clarjta
Statement of Net Position
June 30, 2014
Governmental Business -Type
Activities Activities
Current assets
16,988,769
2,880,380
19,869,149
Cash and investments
$ 194,127,835 $
1,837,412 $
195,965,247
Receivables:
3,168,883
-
3,168,883
Accounts, net
626,924
-
626,924
Interest
461,370
4,518
465,888
Taxes
8,661,773
-
8,661,773
Prepaid costs
568,894
241,098
809,992
Due from other governments
6,524,804
4,217,953
10,742,757
Total current assets
210,971,600
6,300,981
217,272,581
Noncurrent assets
1,591,276
26,714
1,617,990
Restricted assets:
807,887
-
807,887
Cash and investments
9,278,190
-
9,278,190
Cash and investments with fiscal agents
2,147,853
-
2,147,853
Loans receivable
2,424,977
-
2,424,977
Land held for resale
1,188,969
-
1,188,969
Notes to RDA Successor Agency
13,393,468
-
13,393,468
Allowance for doubtful accounts
(13,393,468)
-
(13,393,468)
Other post -employment benefits asset
6,214,930
-
6,214,930
Capital assets:
71,643,713
Unrestricted
82,854,775
Nondepreciable assets
138,688,768
15,171,132
153,859,900
Depreciable assets, net
691,684,241
68,125,413
759,809,654
Total noncurrent assets
851,627,928
83,296,545
934,924,473
Total assets
1,062,599,528
89,597,526
1,152,197,054
Liabilities
Current liabilities
Accounts payable and accrued liabilities
16,988,769
2,880,380
19,869,149
Interest payable
483,290
-
483,290
Deposits payable
3,168,883
-
3,168,883
Unearned revenues
603,859
-
603,859
Compensated absences
1,605,764
39,676
1,645,440
Claims and judgments
1,349,876
-
1,349,876
Bonds, loans and capital leases
1,969,029
-
1,969,029
Total current liabilities
26,169,470
2,920,056
29,089,526
Noncurrent liabilities
Compensated absences
1,591,276
26,714
1,617,990
Claims and judgments
807,887
-
807,887
Bonds, loans and capital leases
35,382,810
-
35,382,810
Developer credits
44,222,984
-
44,222,984
Total noncurrent liabilities
82,004,957
26,714
82,031,671
Total liabilities
108,174,427
2,946,770
111,121,197
Net position
Net investment in capital assets
799,926,613
83,296,545
883,223,158
Restricted
71,643,713
-
71,643,713
Unrestricted
82,854,775
3,354,211
86,208,986
Total net position
$ 954,425,101 $
86,650,756 $
1,041,075,857
See Notes to Financial Statements.
13
City of Santa Clarita
Statement of Activities
For the Year Ended June 30, 2014
Business -Type Activities:
Transit Enterprise 26,819,161 7,587,497 8,984,127 10,804,747
Total business -type activities 26,819,161 7,587,497 8,984,127 10,804,747
Total $ 165.175.514 $ 6n 220. n2l % 2R 4nF qqa 4 17 44F r,AA
General revenues
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Motor vehicle in lieu - unrestricted
Investment income
Miscellaneous
Gain on sale of capital asset
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
Program Revenues
Operating
Capital
Charges for
Contributions Contributions
Functions/Programs
Expenses
Services
and Grants
and Grants
Governmental Activities:
General government
$ 41,807,284
$ 31,970,148
$ 6,172,495 $
-
Public safety
22,187,434
1,847,403
552,440
201,710
Parks, recreation and community service
22,550,301
4,390,686
188,482
26,928
Public works
26,183,862
12,463,046
6,417,931
22,098,718
Community development
6,193,101
1,961,243
6,089,851
203,485
Unallocated infrastructure depreciation
17,561,539
-
-
_
Interest and fiscal charges
1,872,832
-
_
Total governmental activities
138,356,353
52,632,526
19,421,199
22.530.841
Business -Type Activities:
Transit Enterprise 26,819,161 7,587,497 8,984,127 10,804,747
Total business -type activities 26,819,161 7,587,497 8,984,127 10,804,747
Total $ 165.175.514 $ 6n 220. n2l % 2R 4nF qqa 4 17 44F r,AA
General revenues
Taxes:
Property taxes
Sales taxes
Franchise taxes
Transient occupancy taxes
Property transfer tax
Motor vehicle in lieu - unrestricted
Investment income
Miscellaneous
Gain on sale of capital asset
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
$ (3,664,641) $
$ (3,664,641)
(19,585,881)
_
(19,585,881)
(17,944,205)
- (17,944,205)
14,795,833
- 14,795,833
' 2,061,478
- 2,061,478
(17,561,539)
(17,561,539)
(1,872,832)
- (1,872,832)
' (43,771,787)
- (43,771,787)
$ 954,425,101 $ 86,650,756 $ 1,041,075,857
15
557,210
557,210
' =
557,210
557,210
(43,771,787)
557,210
(43,214,577)
35,652,080
-
35,652,080
33,480,522
-
33,480,522
7,796,070
7,796,070
2,781,527
-
2,781,527
947,470
-
947,470
86,531
86,531
2,090,322
4,791
2,095,113
781,986
-
781,986
18,174
-
18,174
'
(5,692,032)
5,692,032
77,942,650
5,696,823
83,639,473
' 34,170,863
6,254,033
40,424,896
920,254,238
80,396,723
1,000,650,961
$ 954,425,101 $ 86,650,756 $ 1,041,075,857
15
City of Santa Clarita
Balance Sheet
Governmental Funds
June 30, 2014
Special Revenue Funds
Liabilities, deferred inflows of resources
and fund balances (deficit)
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable 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 (deficit)
See Notes to Financial Statements.
16
$ 7,627,130 $ 597,686 $ 669,060
3,168,883 - -
603,859
- 1,599,643 9,945,693
11,399,872 2,197,329 10,614,753
2,546,893 -
2,546,893 - -
11,519,143
9,308,502
51,718,096 - -
45,654,640 - (9,111,684)
108,891,879 9,308,502 (9,111,684)
$ 122,838.644 $ 11,505,831 $ 1,503,069
Bridge and
Public
General
Thoroughfare
Library
Assets
Cash and investments
$ 98,311,598 $
11,466,395 $
765,929
Receivables:
Accounts, net
488,495
13,440
-
Interest
253,201
25,996
1,738
Taxes
7,931,716
-
99,554
Loans
-
-
-
Notes to RDA Successor Agency
7,903,770
-
-
Allowance for doubtful accounts
(7,903,770)
-
-
Prepaid costs
91,630
-
59,465
Due from other governments
1,234,746
-
-
Due from other funds
2,274,080
-
Advances to other funds
11,427,513
-
-
Land held for resale
-
-
-
Restricted assets:
Cash and investments
-
-
576,383
Cash and investments with fiscal agents
825,665
-
-
Total assets
$ 122,838,644 $
11,505,831 $
1 503 069
Liabilities, deferred inflows of resources
and fund balances (deficit)
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable 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 (deficit)
See Notes to Financial Statements.
16
$ 7,627,130 $ 597,686 $ 669,060
3,168,883 - -
603,859
- 1,599,643 9,945,693
11,399,872 2,197,329 10,614,753
2,546,893 -
2,546,893 - -
11,519,143
9,308,502
51,718,096 - -
45,654,640 - (9,111,684)
108,891,879 9,308,502 (9,111,684)
$ 122,838.644 $ 11,505,831 $ 1,503,069
City of Santa Ciarita
Balance Sheet
Governmental Funds
June 30, 2014
Liabilities, deferred inflows of resources
and fund balances (deficit)
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable 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 (deficit)
See Notes to Financial Statements.
$ 2,765,765 $ 5,083,445 $ 16,743,086
- - 3,168,883
- 603,859
- 2,274,080 2,274,080
- - 11,545,336
2,765,765 7,357,525 34,335,244
4,046,291 6,593,184
4,046,291 6,593,184
336,882 270,114
Special
28,017,558 46,942,660
84,268,720
- 612,829
Revenue Funds
- 3,412,127
55,130,223
- (188,963)
Landscape
Non -Major
Total
Maintenance
Governmental
Governmental
District#1
Funds
Funds
Assets
Cash and investments $
30,456,752
$ 42,803,428 $
183,804,102
Receivables:
Accounts, net
46,173
75,405
623,513
Interest
69,432
87,787
438,154
Taxes
210,966
419,537
8,661,773
Loans
-
2,424,977
2,424,977
Notes to RDA Successor Agency
-
5,489,698
13,393,468
Allowance for doubtful accounts
-
(5,489,698)
(13,393 468)
Prepaid costs
336,882
20,604
508,581
Due from other governments
-
5,290,058
6,524,804
Due from other funds
-
-
2,274,080
Advances to other funds
-
117,823
11,545,336
Land held for resale
-
1,188,969
1,188,969
Restricted assets:
Cash and investments
-
8,701,807
9,278,190
Cash and investments with fiscal agents
-
1,322,188
2,147,853
Total assets $
31,120,205
$ 62,452,583 $
229,420,332
Liabilities, deferred inflows of resources
and fund balances (deficit)
Liabilities
Accounts payable and accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable 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 (deficit)
See Notes to Financial Statements.
$ 2,765,765 $ 5,083,445 $ 16,743,086
- - 3,168,883
- 603,859
- 2,274,080 2,274,080
- - 11,545,336
2,765,765 7,357,525 34,335,244
4,046,291 6,593,184
4,046,291 6,593,184
336,882 270,114
12,126,139
28,017,558 46,942,660
84,268,720
- 612,829
612,829
- 3,412,127
55,130,223
- (188,963)
36,353,993
28,354,440 51,048,767
188,491,904
17
$ 31,120,205 $ 62,452,583 $ 229,420,332
In
City of Santa Clarita
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
' June 10, 2114
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
Depreciable assets, net of accumulated depreciation
Revenues reported as deferred inflows 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
Certificates of participation bonds
Capital leases
Loans payable
Compensated absences
Bridge and Thoroughfare developer payables
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
$ 138,688,768
691,073,027
(12,002,622)
(24,614,512)
(154,705)
(580,000)
(3,194, 786)
(44,222,984)
$ 188,491,904
829,761,795
6,593,184
6,214,930
(84,769,609)
(483,290)
8,616,187
$ 954,425,101
City of Santa Clarita
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2014
Special Revenue Funds
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
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
Fund balances (deficit), end of year
See Notes to Financial Statements.
14,211,854
20,419,720
20,319,194
11,566,617
5,461,356
1,666,884
179,262
14,154,493
4,680,637
515,225
- 47,174
- 171,598 95,352
73,645,625 14,505,353 5,338,388
16,262,349 (14,173,059) 63,405
2,647,420
Bridge and
Public
General
Thoroughfare
Library
Revenues
(2,951,532) 58,267
Taxes
$ 73,832,592
$
$ 5,143,664
Special assessments
-
-
Licenses and permits
5,366,972
Intergovernmental
208,313
-
Charges for services
8,801,042
75,000
Investment income
1,018,077
332,294
4,613
Fines and forfeitures
545,983
-
-
Developer fees
-
-
Other revenue
134,995
-
178,516
Total revenues
89,907,974
332,294
5,401,793
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
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
Fund balances (deficit), end of year
See Notes to Financial Statements.
14,211,854
20,419,720
20,319,194
11,566,617
5,461,356
1,666,884
179,262
14,154,493
4,680,637
515,225
- 47,174
- 171,598 95,352
73,645,625 14,505,353 5,338,388
16,262,349 (14,173,059) 63,405
2,647,420
(4,355,191)
(75,807) (5,138)
11,297,334
(1,707,771)
11,221,527 (5,138)
14,554,578
(2,951,532) 58,267
`za
94,337,301 12,260,034 (9,169,951)
$ 108,891,879 $ 9,308,502 $ (9111684)
City of Santa Clarita
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2014
Revenues
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Investment income
Fines and forfeitures
Developer fees
Otherrevenue
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
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
Fund balances (deficit), end of year
ISee Notes to Financial Statements.
Special
Revenue Funds
Landscape Non -Major Total
Maintenance Governmental Governmental
District#1 Funds Funds
$ 837,266
$ 472,138
$ 80,285,660
22,690,306
10,062,299
32,752,605
-
-
5,366,972
6,185,263
34,147,421
34,355,734
-
527,935
9,403,977
305,295
251,212
1,911,491
-
1,115,174
1,661,157
2,600,997
2,600,997
-
5,630,097
5,943,608
23,832,867
54,807,273
174,282,201
21
12,765,907 4,635,807
36,294,205
- 1,717,618
22,137,338
- 178,914
20,498,108
- 12,639,986
24,385,865
- 723,907
6,185,263
8,447,530 11,796,457
36,580,589
1,790, 000 1,837,174
- 1,618,596 1,885,546
21,213,437 35,101,285 149,804,088
2,619,430 19,705,988 24,478,113
7,110,027
9,757,447
(204,113) (10,884,249)
(15,524,498)
11, 297, 334
(204,113) (3,774,222)
5,530,283
2,415,317 15,931,766
30,008,396
25,939,123 35,117,001 158,483,508
$ 28,354,440 $ 51,048,767 $ 188,491,904
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, 2014
Net change in fund balances- tonal governmental funds $ 30,008,396
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 depredation expense in the current peso&
Capital outlay $ 35,588,300
Depreciation expense (20,969,353)
Disposal of capital assets (1,802,495)
12,816,452
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the governmental funds.
646,892
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
(336,604)
Lease revenue bonds
310,000
Certificates of participation bonds
1,250,000
Capital leases
47,174
Loans payable
230,000
Amortization of premiums of long-term liabilities
3,658
Amortization of discounts of long-term liabilities
(4,614)
1,499,614
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
(11,297,334)
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
13,670
Changes and amortization of other post -employment benefit asset
(9,000)
4,670
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. 492,173
Change in net position of governmental activities $ 34,170,863
See Notes to Financial Statements.
23
City of Santa Clarita
Statement of Net Position
Proprietary Funds
June 30, 2014
Noncurrent assets
Capital assets:
Land
Construction in progress
Site improvements, net of accumulated depreciation
Building and improvements, net of accumulated depreciation
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
Compensated absences payable
Claims and judgments
Total noncurrent liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted
Total net position
See Notes to Financial Statements,
24
15,087,880 -
83,252 -
10,570,218 -
32,208,106 -
25,347,089 611,214
83,296,545 611,214
89,597, 526 11, 021, 887
2,880,380 245,683
39,676 2,254
- 1,349,876
2,920,056 1,597,813
26,714 -
- 807,887
26,714 807,887
2,946,770 2,405,700
83,296,545 611,214
3,354,211 8,004,973
$ 86,650,756 $ 8,616,187
Business -Type
Governmental
Activities
Activities
Transit
Internal
Enterprise
Service Funds
Assets
Current assets
Cash and investments
$ 1,837,412
$ 10,323,733
Receivables:
Accounts
-
3,411
Interest
4,518
23,216
Prepaid costs
241,098
60,313
Due from other governments
4,217,953
-
Total current assets
6,300,981
10,410,673
Noncurrent assets
Capital assets:
Land
Construction in progress
Site improvements, net of accumulated depreciation
Building and improvements, net of accumulated depreciation
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
Compensated absences payable
Claims and judgments
Total noncurrent liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted
Total net position
See Notes to Financial Statements,
24
15,087,880 -
83,252 -
10,570,218 -
32,208,106 -
25,347,089 611,214
83,296,545 611,214
89,597, 526 11, 021, 887
2,880,380 245,683
39,676 2,254
- 1,349,876
2,920,056 1,597,813
26,714 -
- 807,887
26,714 807,887
2,946,770 2,405,700
83,296,545 611,214
3,354,211 8,004,973
$ 86,650,756 $ 8,616,187
City of Santa Clarita
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2014
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
Gain (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
' Net position, end of year
See Notes to Financial Statements.
1,812,904
Business -Type
Governmental
-
Activities
Activities
5,101, 973
Transit
Internal
2,873,001
Enterprise
Service Funds
Operating revenues
Charge for services
$ 6,780,221
$ 3,105,691
Other revenues
807,276
-
Total operating revenues
7,587,497
3,105,691
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
Gain (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
' Net position, end of year
See Notes to Financial Statements.
1,812,904
336,388
17,655,898
-
2,156,401
2,369,477
5,101, 973
167,136
26,727,176
2,873,001
(19,139,679)
232,690
8,984,127
-
4,791
166,290
(91,985)
18,174
8,896,933
184,464
(10,242,746)
417,154
5,917,750
92,430
(225,718)
(17,411)
10,804,747
-
16,496,779
75,019
6,254,033
492,173
80,396,723 8,124,014
$ 86,650,756 $ 8,616,187
City of Santa Clarita
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2014
Business -Type
Activities
Transit
Enterprise
Governmental
Activities
Internal
Service Funds
Cash flows from operating activities
Cash received from customers and users
$
6,780,221
$
3,102,280
Cash paid to suppliers for goods and services
(21,348,841)
(2,469,844)
Cash paid to employees for services
(1,123,414)
905,873
Cash received from other sources
807,276
-
Net cash provided by (used in) operating activities
(14,884,758)
1,538,309
Cash flows from non -capital financing activities
Cash transfers out
(225,718)
(17,411)
Cash transfers in
5,917,750
92,430
Payment made to other funds
(1,738,468)
-
Intergovernmental revenues
8,481,126
-
Net cash provided by non -capital financing activities
12,434,690
75,019
Cash flows from capital and related financing activities
Capital contributions
16,216,303
-
Acquisition and construction of capital assets
(11,929,096)
(381,803)
Net cash provided by (used in)
capital and related financing activities
4,287,207
(381,803)
Cash flows from investing activities
Interest received
273
182,281
Net cash provided by investing activities
273
182,281
Net increase in cash and cash equivalents
1,837,412
1,413,806
Cash and cash equivalents at beginning of year
-
8,909,927
Cash and cash equivalents at end of year
$
1,837,412
$
10,323 733
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)
$
(19,139,679)
$
232,690
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation
5,101, 973
167,136
(Increase) in accounts receivable
-
(3,411)
(Increase)in prepaid expense
(837)
(60,313)
Increase(decrease)in accounts payable
(850,573)
162,256
Increase in claims and judgments
-
1,043,646
Increase (decrease) in compensated absences
4,358
(3,695)
Total adjustments
4,254,921
1,305,619
Net cash provided by (used in) operating activities
$
(14,884,758)
$
1,538 309
Non-cash investing, capital and financing activities
Disposal of capital assets
$
(91,985)
$
167,136
See Notes to Financial Statements.
26
27
City of Santa Clarita
Statement of Net Position (Deficit)
Fiduciary Funds
June 30, 2014
Assets
Cash and investments
Receivables:
Interest
Taxes
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Capital assets:
Land
Site improvements, net of accumulated depreciation
Building and improvements, net of accumulated depreciation
Infrastructure, net of accumulated depreciation
Total assets
Liabilities
Accounts payable
Interest payable
Due to external parties
Bonds, due within one year
Bonds and notes, due in more than one year
Total liabilities
Net Position (Deficit)
Trust deficit
Total net position (deficit)
i
Agency
Funds
Private -
Purpose
Trust Fund
RDA Successor
Agency
$ 1,000,192
$ 1,612,236
2,191
3,588
1,595
-
715,000
-
-
1,011,031
-
3,494
1,761,828
1,165,418
9,937,976
532,878
-
99,279
90,300
-
3,977,737
$ 13,509,082
8,405,661
$ 4,743
- 418,524
13,509,082 -
- 629,470
48,521,272
$ 13,509,082 49,574,009
(41,168, 348)
$ (41,168,348)
City of Santa Clarita
Statement of Changes in Net Position (Deficit)
Fiduciary Funds
For the Year Ended June 30, 2014
Deductions
Administrative expenses
Private -
Contractual services
Purpose
I nterest expense
Trust Fund
Depreciation expense
RDA Successor
Contributions to other governments
Agency
Additions
6,968,582
Property taxes
$ 2,226,306
Investment income
11,758
Total additions
2,238,064
Deductions
Administrative expenses
79,605
Contractual services
10,109
I nterest expense
1,732,199
Depreciation expense
90,160
Contributions to other governments
5,056,509
Total deductions
6,968,582
Changes in net position
(4,730,518)
Net Position (Deficit)
Trust deficit, beginning of year
(36,437,830)
Trust deficit, end of year
$ (41,168,348)
29
af,
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
t 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 Authority). The City is considered to be financially accountable for the
Authority, which is governed by the City Council, which serves as the Board of the 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 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 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.
31
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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 GAAP 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 underaccrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences,
pension and other post -employment benefits, and the redemption of district credits are recorded only
when payment is due.
32
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Accounting and Measurement Focus (Continued)
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 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 for restricted district fees
received from developers as set by the State Subdivision Law and the Los Angeles County and City
' of Santa Clarita, which are 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. At June 30, 2014, the Bridge and Thoroughfare Special Revenue Fund was elected as
a major fund.
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 in 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 and expenses result from the operating and maintenance of the local public
transit services. The operating revenues consist of charges to customers for the service provided.
Operating expenses include the costs of providing these services, administrative expenses and
depreciation expense. All revenues and expenses not meeting these definitions and which are not
' capital in nature are reported as non-operating revenues and 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.
33
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Accounting and Measurement Focus (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position (Deficit) and a Statement of
Changes in Net Position (Deficit). 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 reported on the accrual basis of accounting and 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 (the Watershed Authority).
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 (the
SCPTA).
Fund Types Reported by the City
Additionally, the City reports the following fund types:
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted 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).
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Basis of Accounting and Measurement Focus (Continued)
' The Internal Service Funds are used to account for the financing of special activities that provide
services within the City. Such activities include self-insurance, computer replacement 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 unexpended bond proceeds of the District's bonds are classified as restricted assets because
their use is completely restricted to the purpose for which the bonds were originally issued. 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
' E. Land Held for Resale
' Land parcels held for resale are recorded at the lower of cost or fair value. The cost of the land
includes all costs incurred that are directly associated with the acquisition of the land, including
purchase price, escrow costs, clearing land for use costs, demolition costs, etc.
35
1
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as "due to/from other funds" (i.e., current portion of interfund
loans) or "advances from/to other funds" (i.e., noncurrent portion of interfund loans). Any residual
balances outstanding between the governmental activities and business -type activities are reported in
the government -wide financial statements as "internal balances."
During the course of operations, numerous transactions occur between individual funds involving
goods provided or services rendered. There are also transfers of revenues from funds authorized to
receive the revenue to funds authorized to expend it. Any residual balances outstanding between
governmental and business -type activities are reported in the government -wide financial statements
as "transfers."
G. Property Taxes
Property taxes and special assessment taxes are attached as enforceable liens on real property on
July 1, the beginning of the fiscal year, and are due in two installments on November 1 and
February 1, however, no penalties or interest are assessed until December 10 and April 10,
respectively. These taxes are determined annually based on property values, subject to limits based
on Proposition 13, as of January 1 of the levy year, which is prior to the end of the previous fiscal
year. The County of Los Angeles bills and collects these taxes for the City and are remitted on a
monthly basis. Remittance of property taxes to the City is accounted for in the City's General Fund
and Public Library Special Revenue Fund. Property taxes on certain registered motor vehicles are
assessed and collected throughout the year.
H. Allowances for Uncollectible Accounts
Allowances for uncollectible accounts are maintained on customer and other trade receivables that
historically experience uncollectible amounts. Allowances are based on collection experience and
management's evaluation of the current status of existing receivables.
1. 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.
[ell
City of Santa Clarita
' Notes to Financial Statements
For the Year Ended June 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. 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 $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 5-25 years
Buildings and Improvements 5-50 years
Equipment 5-25 years
Infrastructure 20-60 years
' Governmental Fund Financial Statements
The governmental fund financial statements do not present capital assets. Instead, capital assets
purchases are reported as capital outlay expenditures. 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.
K. 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.
37
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Long -Term Debt (Continued)
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.
L. 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).
M. 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.
N. 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.
38
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Net Position and Fund Balances (Continued)
' 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, 2014, the balance totaled $13,100,000, which is included in the
unassigned fund balance in the General Fund.
O. 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.
39
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
O. Spending Policy (Continued)
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and
unassigned fund balances are available, the City's policy is to apply in the following order, except for
instances wherein an ordinance specifies the fund balance:
• Restricted
• Committed
Assigned
• Unassigned
P. Estimates
The preparation of the basic financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of certain assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the basic financial statements and the
related reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates. Management believes that the estimates are reasonable.
Q. Deferred Inflows of Unavailable 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 represen
earned but have not been received within the availability period. This does
financial resource in the current period, therefore, recognition is deferred
been met.
R. Pronouncements Issued But Not Yet Adopted
I funds that have been '
not provide an available
until these criteria have
The GASB has issued pronouncements that have an effective date subsequent to June 30, 2014,
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. 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. '
GASB Statement No. 69, Government Combinations and Disposals of Government Operations:
Effective for the City's fiscal year ending June 30, 2015.
40
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. Pronouncements Issued But Not Yet Adopted (Continued)
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.
2. CASH AND INVESTMENTS
A. Cash and Investments
Cash and investments at June 30, 2014 are classified in the accompanying financial statements as
follows:
41
Governmental
Business -Type
Activities
Activities
Fiduciary Funds
Total
Cash and investments
$194,127,835
$ 1,837,412
$ 2,612,428
$198,577,675
Restricted:
Cash and investments
9,278,190
-
3,494
9,281,684
Cash and investments with fiscal agent
2,147,853
-
2,927,246
5,075,099
Total
$205.553,878
$ 1,837,412
$ 5,543,168
$212,934,458
41
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
2. CASH AND INVESTMENTS (Continued)
A. Cash and Investments (Continued)
Cash and investments consisted of the following at June 30, 2014:
Cash on hand and deposits
Cash on hand $ 4,715
Deposits with financial institutions 421,409
Certificates of deposit 999,998
Total cash on hand and deposits 1,426,122
Investments
U.S. Treasury Securities
31,505,217
U.S. Government -Sponsored Enterprise Securities
71,578,161
Commercial Paper
9,198,901
Medium -Term Notes
38,167,951
Money Market Funds
1,606,088
State of California Local Agency Investment Fund (LAIF)
43,599,682
L.A. County Pooled Investment Fund (LACPIF)
1,495,553
Total investments
197,151,553
Restricted investments:
Money Market Funds 9,281,684
Total restricted investments 9,281,684
Restricted investments with fiscal agent:
Money Market Funds 5,075,099
Total investments with fiscal agent 5,075,099
Total cash and investments $212,934,458
The carrying amounts of the City's deposits were $1,426,122 at June 30, 2014. Bank balances before
reconciling items were $1,776,049 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.
EPA
City of Santa Clarita
' Notes to Financial Statements
For the Year Ended June 30. 2014
' 2. CASH AND INVESTMENTS (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy
' The following table 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.
' Maximum
Percentage or Maximum
' 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 300/0 No Limit
Repurchase Agreements 1 year No Limit No Limit
Medium -Term Notes 5 years 30% No Limit
Money Market 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
State of California Local Agency Investment Fund (LAIF) Not Applicable $ 50,000,000 No Limit
' Excluding amounts held by bond trustees that are not subject to California Government Code
restrictions.
Banker's acceptances may have no more than 30 percent in any one commercial bank,
commercial paper may not represent more than 10 percent of the City's surplus funds for any
' single issuer, and money market mutual funds may have no more than 10 percent invested in any
one mutual fund.
43
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
2. CASH AND INVESTMENTS (Continued)
C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the City's
investment policy. The table below identifies the investment types that are authorized for investments
held by bond trustees. The table also identifies certain provisions of these debt agreements that
address interest rate risk, credit risk and concentration of credit risk.
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.
44
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 Funds
5 years
15%
10%
State of California Local Agency Investment Fund (LAIF)
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.
44
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
2. CASH AND INVESTMENTS (Continued)
D. Disclosures Relating to Interest Rate Risk (Continued)
At June 30, 2014, the City had the following investment maturities:
Restricted l nvestments:
Money Market Funds 9,281,684 9,281,684
Total restrided investments 9281,684 9,281,664
Restricted Investments With Fiscal Agent:
Money Market Funds 5,075,099 5,075,099
Total resbicted investinents
vbth fiscal agent 5,075,099 5,075,099
Total Investments subject
to interest rate risk $ 211,508,336 $ 96,823,708 $ 19804,647 $ 34,214,450 $ 34,247,151 $ 26,418,380
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:
Minimum
Investment Maturities (In Years)
Investment Type
Fair Value
Less Than 1
1 to 2
2 to 3
3 to 4
4 to 5
Investments:
Unrated
Investments:
U.S. Treasury Seventies
$ 31,505,217
$ 1,443,041
$ 3,784,977
$ 11,685,793
$ 7,910,725
$ 6,680,681
U.S. Government -Sponsored
$ -
U.S. Govemmer -S ursored
Enterprise Securities
71,578,161
16,931.602
13,583,620
14.122,489
15,510,744
11,429,706
Commands]Paper
9,198,901
9,198,901
-
-
-
-
MediunFTerm Notes
38,167,951
8,192,058
2,436,050
8,406,168
10,825,682
8,307,993
Money Market Funds
1.606,088
1,606,088
-
-
-
-
LAIF
43,599,682
43.599,682
-
-
-
-
LACPIF
1,495,553
1,495,553
None
1695,553
Total investments
197,151,553
82,466,925
19,804,647
34,214,450
34,247,151
26,418,380
Restricted l nvestments:
Money Market Funds 9,281,684 9,281,684
Total restrided investments 9281,684 9,281,664
Restricted Investments With Fiscal Agent:
Money Market Funds 5,075,099 5,075,099
Total resbicted investinents
vbth fiscal agent 5,075,099 5,075,099
Total Investments subject
to interest rate risk $ 211,508,336 $ 96,823,708 $ 19804,647 $ 34,214,450 $ 34,247,151 $ 26,418,380
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:
Restnoted Investments:
Money Market Funds None 9,281,684 9,281,684
Total restdded investments 9,281,68,1 9,281,684
Restricted Investments wun Fiscal Agent:
Money Market Funds None 5075,1199 5,075,099
Total restricted investments
with fiscal apart 5075,099 5,075,099
Total investments subject
to credit rate risk _5.211508,336 $ 8477920 $ 110292.559 $ 23468958 5 5 69278.899
45
Minimum
Credit Ratings
Investment Type
Rating
Fair Value
AAA
AA
A A-1
Unrated
Investments:
US. Treasury Secimbm
None
$ 31,505217 $
-
$ 31,505,217
$ - $ -
$ -
U.S. Govemmer -S ursored
Enteron. Seounbes
None
71578,161
-
69,078]86
2,499,375 -
-
CommeraalPaper
A-1
9.198,901
-
-
9,198901 -
-
MoneyMarketFunds
None
1,606,088
1,608088
-
- -
-
Medium -Tenn Noter
A
38,167,951
6871,832
9698,555
11'T0,682 -
9,828881
IAIF
Nene
43,599,882
-
-
- -
43,599,682
LACPIF
None
1695,553
1695,553
Total investments
197,151,553
8,477,920
110,282,559
23,488958
54922,116
Restnoted Investments:
Money Market Funds None 9,281,684 9,281,684
Total restdded investments 9,281,68,1 9,281,684
Restricted Investments wun Fiscal Agent:
Money Market Funds None 5075,1199 5,075,099
Total restricted investments
with fiscal apart 5075,099 5,075,099
Total investments subject
to credit rate risk _5.211508,336 $ 8477920 $ 110292.559 $ 23468958 5 5 69278.899
45
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
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, 2014. 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 it will receive when the investment is
redeemed. As of June 30, 2014, 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
$ 17,979,343 8.50%
$ 17,660,886 8.35%
$ 11,439,612 5.41%
$ 9,494,437 4.49%
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, 2014, none of the City's
deposits or investments were exposed to custodial credit risk.
46
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
2. CASH AND INVESTMENTS (Continued)
H. Investment in State Investment Pool
The City is a participant in LAIF, which is regulated by California Government Code Section 16429
under the oversight of the Treasurer of the State of California. Each City may invest up to
$50,000,000 and may also invest without limitation in special bond proceeds accounts. Investments in
LAW 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, 2014 included a portion of the pool funds invested in
structured notes and asset-backed securities:
Structured Notes — Debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount or stated maturity) depend upon one or more
indices and/or that have embedded forwards or options.
Asset -Backed Securities — Generally mortgage-backed securities that entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages (for example, collateralized mortgage obligations) or credit card
receivables.
As of June 30, 2014, the City had $43,599,682 invested in LAIF, which had invested 1.86 percent of
the pool investment funds in structured notes and asset-backed securities. The LAW fair value factor
of 1.00029875 was used to calculate the fair value of the investments in LAIF from their amortized
cost basis.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in
accordance with State statute.
L Investment in County Investment Pool
The LACPIF is a pooled investment fund program governed by the Los Angeles County Board of
Supervisors and administered by the Los Angeles County Treasurer and Tax Collector. Investments
in the LACPIF are highly liquid, as deposits and withdrawals can be made at any time without penalty.
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, 2014, the City had $1,495,553 invested in the LACPIF. The LACPIF fair value factor of
0.995612657 was used to calculate the fair value of the investments in the LACPIF from their
amortized cost basis.
3. LAND HELD FOR RESALE
As of June 30, 2014, the City had $1,188,969 of land held for resale, which is reported at fair value.
There were no changes in fair value during the current year.
47
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
4. ACCOUNTS RECEIVABLE
Accounts receivable as of June 30, 2014, including allowances for uncollectible accounts, is as
follows:
Landscape Non -Major
General Bridge and Maintenance Governmental
Fund Thoroughfare District#1 Funds Total
Gross receivables $ 990,770 $ 13,440 $ 125,235 $ 152,301 $ 1,281,746
Less: allowance for uncollectibles 502,275 79,062 76,896 658,233
Net total receivables $ 488,495 $ 13,440 $ 46,173 $ 75,405 $ 623,513
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 $2,424,977 at June 30, 2014 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 Fees
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, 2014. 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 $890,974 and $169,812, respectively.
48
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
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, 2014:
Governmental activities.
Nondepreciable assets:
Lane
' ConsWction in pm9ness
Total non-eepreaable assets
Deprecieae assets.
so improvements
' Building and improvements
Equipment
IManuctun,
TMaI depauable assets
Less accumulated depreciation:
Site improvements
Building and improvemarts
Eq.MeM
Infrasauctu e
' Total ac[umulated depauation
TMeI depauable assets, net
Total capital assets, net
Governmental Activnies
Balance Balance
July 1, 2(113 AElustments' Additions Deletions Tansan, June 36 2014
$ 116,387,179 $ 8,663,368 $ - $ - $ - $ 125250,547
5,474,307 - 17,875.316 (224,422) (9.886980) 13,438,221
121,861,485 8.863.358 17,875,316 (224,422) (9,686,980) 138,666,766
29,970,888
7,208,784
366,553
(165,018)
869,925
38,252,932
68.312,313
-
18.354
-
133,971
68,469638
12,975233
-
1.600.601
(1953,241)
-
12,622,593
837,210,574
35,247,516
16,125,453
(1,914,393)
8,683,084
895,352,264
948.468,808
42,456330
18.112.961
(4,032,652)
9,686.980
1,014,692,427
(10,423,525) (513,482) (1,289,028)
(14,5965%) - (1,500,170)
(10,4T/,098) - (805,754)
33,004 - (12,173,029)
1,947,734 - (9.335,118)
Adjustments were to restate capital assets as of June 30, 2013 (see Note 12).
Depreciation expense was charged to functions/programs of governmental activities for the fiscal year
ended June 30, 2014, as follows:
Governmental Activities
General government
$ 1,008,027
Public safety
50,096
Public works
184,543
Parks, recreation and community service
2,159,993
Community development
5,155
Internal service funds depreciation
167,136
Allocated depreciation
3,574,950
Unallocated infrastructure depreciation
17,561,539
Total depreciation expense
$ 21,136,489
49
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
7. CAPITAL ASSETS (Continued)
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, 2014:
Business -type activities:
Non-depredable 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, 2013 Additions Deletions Transfers June 30, 2014
$ 15,087,880 $ - $ - $ - $ 15,087,880
2,145,290 2,765,626 (4,827,664) 83,252
17,233,170 2,765,628 (4,827,664) 15,171,132
7,413,201 - -
4,747,181 12,160,382
41,483,799 - -
- 41,483,799
45,109,127 9,163,470 (5,472,777)
80,483 48,880,303
94,006,127 9,163,470 (5,472,777)
4,827,664 102524,484
(1,116,174) (473,990) - - (1,590,169)
(8,392,346) (883,347) - - (9,275,693)
Depreciation expense for business -type activities for the fiscal year ended June 30, 2014 was
charged as follows:
Business -Type Activities:
Transit Enterprise
Total depreciation expense
50
$ 5,101,973 '
$ 5,101,973
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
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,
2014:
Capital leases
201,879
-
(47,174)
Classification
49,985
Balanca
Loans
Balance
Due Within
Due More
580,000
July 1, 2013 Additions
Deletions
June 30, 2014
One Year
Than One Year
Lease Revenue Bonds'
3,197,040
1605,764
1,591,276
Claims and judgments
1,114,117
Senes 2007
$ 12,230600 $ -
$ (310,000)
$ 11,920,000
$ 325,000
$ 11,595,000
Plus defamed amount for issuance premium
86,280 -
(3,656)
82,622
3,658
78,964
Total Lease Revenue Bonds
t
12,316,280
(313,650)
12,002,822
328,658
11 673,960
Certificates of Participation:
Refunding, Series 2005
10,485,000 -
(1,1600(10)
9,325,00D
1,195,000
8,130000
Senes 2007
15,430000 -
(90,000)
15,340,000
120,000
15,220,000
Less defema l amount for issuance
discount
(55,102)
4,614
(50,488)
(4,614)
(45,874)
Total Certificates of Participation
25,859,898
(1,245,386)
24,614,512
1,310,386
23,304,126
Capital leases
201,879
-
(47,174)
150,705
49,985
10.720
Loans
810,000
-
(230,000)
580,000
280,000
300,000
Compensated absences
2,064,131
1,930420
(1603,511)
3,197,040
1605,764
1,591,276
Claims and judgments
1,114,117
1613412
(569,766)
2,157,763
1.349,876
807,887
Total
$ 43.160305 $
3,549832
$ (4,009,495) $
42.706642 $
4.924,669 $
37,781,973
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 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 $18,924,425 as of June 30, 2014.
For the current year, principal and interest paid on the bonds was $823,054 and was equal to the
base lease payments as required to be paid to the Authority. The outstanding balance of the bonds
was $11,920,000 at June 30, 2014.
51
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
8. LONG-TERM DEBT (Continued)
A. Governmental Activities (Continued)
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2037
Total
Interest Total
$ 325,000
$ 500,654
$ 825,654
335,000
487,654
822,654
350,000
474,254
824,254
365,000
460,254
825,254
375,000
445,654
820,654
2,125,000
1,990,069
4,115,069
2,585,000
1,521,913
4,106,913
3,190,000
922,504
4,112,504
2,270,000
201,469
2,471,469
$ 11,920,000
$ 7,004,425
$ 18,924,425
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, 2015, 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 $10,640,375 as of June 30, 2014.
For the current year, principal and interest paid on the bonds was $1,528,085 and was equal to the
base lease payments as required to be paid to the Authority. The outstanding balance of the bonds
was $9,325,000 at June 30, 2014.
52
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
8. LONG-TERM DEBT (Continued)
A. Governmental Activities (Continued)
The annual debt service requirements on these bonds are as follows:
Year Ending June 30,
2015
2016
2017
2018
2019
2020-2021
Total
Certificates of Participation — Series 2007
Principal Interest Total
$ 1,195,000 $ 329,359 $ 1,524,359
1,235,000
287,581
1,522,581
1,280,000
242,769
1,522,769
1,325, 000
194,725
1,519,725
1,375,000
143,241
1,518,241
2,915,000
117,700
3,032,700
$ 9,325,000
$ 1,315,375
$ 10,640,375
On December 12, 2007, the Authority issued $15,525,000 in Certificates of Participation to provide
financing for the costs of acquiring open -space lands, parks and parkland in accordance with the
City's open space, park and parkland programs, purchase a reserve fund surety and fund the costs of
delivery of the certificates. The certificates are secured by a pledge of special assessment revenues
received by the City. Additionally, there is a backed -up pledge of 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 City has pledged the future special assessment revenues received to repay the Certificates. The
Certificates are payable solely from all or a portion of the annual special assessment collected for the
District. The total principal and interest remaining to be paid on the certificates is $26,845,448 as of
June 30, 2014. For the current year, principal and interest paid on the certificates was $798,051 and
total special assessment revenues were $2,143,520. The outstanding balance of the certificates was
$15,340,000 at June 30, 2014.
53
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
8. LONG-TERM DEBT (Continued)
A. Governmental Activities (Continued)
The annual debt service requirements on these certificates are as follows:
Year Ending June 30, Principal Interest Total
2015
$ 120,000
$ 703,851
$ 823,851
2016
150,000
698,451
848,451
2017
185,000
691,751
876,751
2018
220,000
683,651
903,651
2019
255,000
674,151
929,151
2020-2024
1,855,000
3,170,164
5,025,164
2025-2029
3,030,000
2,633,710
5,663,710
2030-2034
4,535,000
1,755,956
6,290,956
2035-2038
4,990,000
493,763
5,483,763
Total
$ 15,340,000
$ 11,505,448
$ 26.845.448
Loans
In December 1999, the City entered into a loan agreement with the Secretary of Housing and Urban
Development in the amount of $2,000,000. The purpose of this loan was to provide financing for the
installation of curbs, gutters and sidewalks in the West Newhall area. Payments are due semi-
annually, commencing on August 1, 2001, and continuing through August 1, 2014. Future CDBG
grant funding will be used to repay the loan. The interest rate on this loan is fixed at 7.49 percent. The
amount outstanding at June 30, 2014 is $180,000.
In August 2002, the City entered into a loan agreement with the Secretary of Housing and Urban
Development in the amount of $350,000. The purpose of this loan was to assist the Boys & 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, 2014 is $97,000.
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, 2014 is $303,000.
54
Balance
Balance
Due Within
Due in More
July 1, 2013 Additions
Deletions
June 30 2014
One Year
Than One Year
HUD Loans:
1999 West Newhall
$ 310,000 $ -
$ (130,000)
$ 180,000
$ 180,000
$ -
Boys 8 Gids Club
120,000 -
(23,000)
97,000
23,000
74,000
Scherzinger Lane
380,000 -
(77,000)
303,000
77,000
226,000
Total loans
$ 810.000 $ -
$ (230,000)
S 580.000
$ 280,000
$ 300.000
In December 1999, the City entered into a loan agreement with the Secretary of Housing and Urban
Development in the amount of $2,000,000. The purpose of this loan was to provide financing for the
installation of curbs, gutters and sidewalks in the West Newhall area. Payments are due semi-
annually, commencing on August 1, 2001, and continuing through August 1, 2014. Future CDBG
grant funding will be used to repay the loan. The interest rate on this loan is fixed at 7.49 percent. The
amount outstanding at June 30, 2014 is $180,000.
In August 2002, the City entered into a loan agreement with the Secretary of Housing and Urban
Development in the amount of $350,000. The purpose of this loan was to assist the Boys & 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, 2014 is $97,000.
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, 2014 is $303,000.
54
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
8. LONG-TERM DEBT (Continued)
A. Govemmental Activities (Continued)
Future payment requirements for the loans are combined as follows:
Year Ending June 30, Principal Interest Total
2015
$ 280,000 $
29,186 $
309,186
2016
100,000
21,335
121,335
2017
100,000
14,220
114,220
2018
100,000
8,605
108,605
Total
$ 580,000 $
73,346 $
653 346
Caoital Lease
On February 28, 2012, the City Council approved a lease -purchase agreement with One Source
Financial Corp. for two seven -bin sorters for the Canyon Country and Valencia Library branches in
the amount of $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 $ 252,068
Less: Accumulated depreciation (109,229)
Total $ 142,839
Future capital lease payment requirements are as follows:
Year Ending June 30, Total
2015 $ 57,900
2016 57,900
2017 43,425
Net minimum lease payments 159,225
Less: amount representing interest 4,520
Present value of net minimum lease payments $ 154,705
Compensated Absences
The City's liability for accrued and unpaid compensated absences in the governmental activities
totaled $3,197,040 at June 30, 2014. The majority of compensated absences are liquidated through
the General Fund.
55
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
8. LONG-TERM DEBT (Continued)
A. Governmental Activities (Continued)
Claims and Judgments
The City's liability for outstanding claims and judgments is $2,157,763 at June 30, 2014 (see
Note 17).
B. Business -Type Activities
Compensated Absences
The City's liability for accrued and unpaid compensated absences in the business -type activities at
June 30, 2014 is as follows:
Balance Balance Due Within Due in More
July 1, 2013 Additions Deletions June 30 2014 One Year Than One Year
Compensated absences $ 62,032 $ 44,034 $ (39,676) $ 66,390 $ 39,676 $ 26,714
Total $ 62.032 $ 44.034 $ (39,676) $ 66,390 $ 39,676 $ 26 714
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, 2014, deposits payable were as follows:
General Fund:
Deposits from developers $ 2,869,449
Other deposits payable 299,434
Total deposits payable $ 3,168,883
10. DEVELOPER 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) 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.
'6
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
10. DEVELOPER CREDITS (Continued)
As of June 30, 2014, the City accrued a liability of $44,222,984 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, 2014:
Bridge and Thoroughfare Districts:
Bouquet District
Eastside District
Via Princessa District
Valencia District
Total
it. INTERFUND TRANSACTIONS
A. Due To/Due From
Balance Balance
July 1, 2013 Additions Deletions June 30, 2014
$ 13,280,489 $ - $ - $ 13,280,489
4,139,246 11,232,074 (200,000) 15,171,320
- 200,000 200,000
15,505,915 65,260 15,571,175
$ 32,925,650 $ 11,497,334 $ (200,000) $ 44,222,984
At June 30, 2014, the City had the following short-term interfund receivables and payables:
Due To Other Funds:
Non -Major Governmental Funds
Total
Due From Other
Funds
General
$ 2,274,080
$ 2,274,080
The interfund payables balance represents routine temporary cash flow assistance until the amounts
receivable from other governments are collected to reimburse eligible expenditures.
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
11. INTERFUND TRANSACTIONS (Continued)
B. Advances
At June 30, 2014, the City had the following interfund advances:
Advances From Other Funds:
Major Governmental Funds:
Bridge and Thoroughfare
Public Library
Total
Advances To Other Funds
Non -Major
Governmental
General Funds Total
$ 1,481,820 $ 117,823 $ 1,599,643
9,945,693 - 9,945,693
11,427,513 $ 117,823 $ 11,545,336
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, 2014,
the amount of the advance outstanding is $538,214.
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, 2014, the amount of the advance outstanding is $943,606.
In July 2010, the Developer Fees 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,
2014, the amount of the advance outstanding is $117,823.
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, 2014, the
principal amount of the advance of $44,734 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, 2014, the principal
amount of the advance of $93,040 is outstanding.
58
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
11. INTERFUND TRANSACTIONS (Continued)
B. Advances (Continued)
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, 2014, the
principal amount of the advance of $1,348,000 is outstanding.
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, 2014, 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, 2014, the principal amount of the advance of $388,323 is
outstanding.
C. Transfers
At June 30, 2014, the City had the following transfers:
Transfers Out
Landscape Non -Major Transit Internal
General Bddp and Public Maintenanos Governmental Enterprise Service
Fund Tino.41ttare Library District#1 Funds Fund Funds Total
Transfers In:
General Fund
$ - $
7,080 $
5,138 $ 101,113
$ 2,294,650 $
222,028
$ 17,411 $ 2,647.420
Non -Major Governmental Funds
4,262761
66727
- 103000
2.671,849
3,690
- 7,110,027
Transit Enterydse
-
-
- -
5,917,750
-
- 5,917,7W
I ntemal Service Funds
92,430
91,4311
Total
It 4,355,191 $
75,807 $
5,138 $ 204,113
$ 10864249 $
225,718
$ 17911 $ 15,767W77
The General Fund made transfers to non -major governmental funds for operating and capital
improvement projects for $1,911,622 and current year debt service payments for $2,351,139, totaling
$4,262,761. Transfers from the General Fund to the Self -Insurance Internal Service Fund of $92,430
were for an insurance -related settlement.
The Bridge and Thoroughfare, Public Library, and Landscape Maintenance District #1 Special
Revenue Funds, non -major governmental funds, Transit Enterprise Fund and Self -Insurance Internal
Service Fund made transfers to the General Fund for current year post -employment benefits, totaling
$356,280.
The Bridge and Thoroughfare Special Revenue Fund made transfers to non -major governmental
funds for operating and replacement costs for $68,727.
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
11. INTERFUND TRANSACTIONS (Continued) '
C. Transfers (Continued)
The Landscape Maintenance District #1 Special Revenue Fund made transfers to the General Fund '
and the non -major governmental funds for operating and replacement costs for $40,000 and
$103,000, respectively.
The non -major governmental funds made transfers to the General Fund for operating and ,
replacement costs for $2,101,140. Transfers from the non -major governmental funds to the Transit
Enterprise Fund totaling $5,917,750 were to transfer Proposition A and Proposition C non-operating
revenues in the current year.
The Transit Enterprise Fund made transfers to the General Fund for $150,000 to support senior
center transit operations. Transfers to non -major governmental funds for $3,690 were for the '
proportional share of Metrolink station maintenance.
W
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
12. FUND BALANCES AND NET POSITION
A. Fund Balance Classification
The details of fund balance of the governmental funds as of June 30, 2014 are presented below:
Nonspendable:
Prepaid items
Property held for resale
Advances to other funds
Total nonspendable
Restricted:
' Landscape maintenance
Capital improvements
Transportation
Open space preservation
' Public safety
Public library
Air quality improvement
Stormwater
Public education and govemment
Tourism marketing
Low -and moderate -income housing
Total restricted
Committed:
Capital improvements
Total committed
Assigned:
Sewer infrastructure
Capital projects
Claims and settlements
Public facilities replacement
Total assigned
Unassigned
Total fund balances
Major Governmental Funds
Landscape Non -Major
General Bridge and Public Maintenance Governmental
Fund Thoroughfare Library District#1 Funds Total
$ 91,630 $ - $ - $ 336,882 $ 20.604 $ 449,116
- - - - 249,510 249,510
11,427,513 11,427,513
11,519,143 336,882 270,114 12,126,139
- - - 28,017,558 4,351 403
32,368,961
- 9,308,502 - - 3,369,597
12,678,099
- - - - 13,817,352
13,817,352
- - - - 11,880.177
11,880,177
- - - - 651,434
651,434
- - - - 157.301
157,301
- - - - 267,816
267,816
- - - - 5,957,999
5,957,999
- - - - 1,114,017
1,114,017
- - - - 429,720
429,720
- - - - 4,945,844
4,945,844
9,308,502 28,017,558 46,942,660
84,268,720
- 612,829 612,829
612,829 612,629
- -
- - 2,353
2,353
15,500,000 -
- - 3,409,774
18,909,774
13,350,328 -
- - -
13,350,328
22,867,768
22,867,768
51,718,096
3,412,127
55,130,223
45,654,640 - (9,111,684) - (188,963) 36,353,993
$ 108,891879 $ 9.308,502 $ (9,111684) $ 28,354.440 $ 51048]6] $ 188.491.904
61
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
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, 2014 is presented
below:
C. Net Position Restatements
Net position in the City's previously issued June 30, 2013 financial statements has been restated by
$47,754,592 due to adjustments to capital assets. The following corrections are the net result of
capital assets that had not been properly reported at June 30, 2013. Beginning net position in the
governmental activities has been restated as follows:
Governmental
Activities
Net position, as previously reported at June 30, 2013 $ 872,499,646
Restate for duplication of capital assets from 2006 and 2007 (8,176,907)
Restate for storm drain infrastructure contributed to other agencies prior to
2013 and to record infrastructure not recorded at GASB 34 implementation 7,461,940
Restate for capital assets from annexations not recorded between 1991 and 2013 48,469,559
Net position, as restated at June 30, 2013 $ 920,254,238
These changes had the effect of increasing the change in net position of the governmental activities
by $41,269,720 for the year ended June 30, 2013, as compared to the amount previously reported.
Governmental
Activities
Restricted net position:
Landscape maintenance
$ 32,368,961
Transportation
13,817,352
Open space preservation
11,880,177
Public safety
652,431
Public library
157,301
Community development
52,095
Air quality improvement
267,816
Stormwater
5,957,999
Public education and government
1,114,017
Tourism marketing
429,720
Low- and moderate -income
4,945,844
Total restricted net position
$ 71,643,713
C. Net Position Restatements
Net position in the City's previously issued June 30, 2013 financial statements has been restated by
$47,754,592 due to adjustments to capital assets. The following corrections are the net result of
capital assets that had not been properly reported at June 30, 2013. Beginning net position in the
governmental activities has been restated as follows:
Governmental
Activities
Net position, as previously reported at June 30, 2013 $ 872,499,646
Restate for duplication of capital assets from 2006 and 2007 (8,176,907)
Restate for storm drain infrastructure contributed to other agencies prior to
2013 and to record infrastructure not recorded at GASB 34 implementation 7,461,940
Restate for capital assets from annexations not recorded between 1991 and 2013 48,469,559
Net position, as restated at June 30, 2013 $ 920,254,238
These changes had the effect of increasing the change in net position of the governmental activities
by $41,269,720 for the year ended June 30, 2013, as compared to the amount previously reported.
City of Santa Clarita
' Notes to Financial Statements
For the Year Ended June 30, 2014
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 its 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. All participants in this tier make 3 percent of the required contributions, and the City makes
5 percent of the contributions required of City employees on their behalf and for their account.
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, 2014
was 13.3 percent for miscellaneous employees. The contribution requirements of plan members and
the City are established and may be amended by CaIPERS.
' C. Annual Pension Cost
For 2014, the City's annual pension cost of $4,812,658 for CalPERS was equal to the City's required
and actual contribution. The required contribution was determined as part of the June 30, 2011
' 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 23 years from the
valuation date. The actuarial assumptions included (a) a 7.50 percent investment rate of return (net of
administrative expenses); (b) projected annual salary increases of 3.30 percent to 14.20 percent,
' depending on age, service and type of employment, (c) an inflation rate of 2.75 percent; and (d) a
payroll growth rate of 3.00 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
6/30/2012 $ 5,186,634 100% $
6/30/2013 4,825,681 100%
' 6/30/2014 4,812,658 100%
63
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
13. DEFINED BENEFIT PENSION PLAN (Continued)
D. Funded Status and Funding Progress
As of June 30, 2013, the most recent actuarial valuation date available, the plan was 75.91 percent
funded. The actuarial accrued liability for benefits was $120.5 million, and the actuarial value of
assets was $91.5 million, resulting in an unfunded actuarial accrued liability (UAAL) of $29 million.
The covered payroll (annual payroll of active employees covered by the plan) was $26.7 million, and
the ratio of the UAAL to the covered payroll was 108.7 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.
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 CalPERS Health Plan (the Plan). A separate
financial report is not issued.
B. Eligibility
City employees who have a service retirement from the City at age 50 with five or more years of City
service are eligible to receive post -employment medical benefits. Employees who have a disability
retirement are also eligible. Employees hired after January 1, 2008 are eligible for the PERS
minimum. The City implemented a vesting schedule for employees who were hired before January 1,
2008, as follows:
Years of Service Vested Benefit
Less than 5 years PERS minimum
5 to 9 years
10 to 14 years
15 years and greater
50% of Employee +1 rate
75% of Employee +1 rate
100% of Employee +1 rate
As of June 30, 2014, the total participants in the Plan are as follows:
Participants
Active employees
Retirees
Total
M.,
Total
334
67
401
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
14. POST -EMPLOYMENT HEALTH BENEFITS (Continued)
C. Funding Policy
The City pays an allowance toward the healthcare benefits paid to retirees, spouses and eligible
dependents under a City resolution that can be amended by the City Council. During fiscal year 2013-
2014, the City contributed $2,303,000 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. The City elected a
discretionary investment approach with a blended investment objective strategy. The primary
objective is to maximize total Plan return, subject to the risk and quality constraints established. The
Plan's targeted rate of return is 7.0 percent. The asset allocation ranges for this objective are
0 percent to 20 percent cash source, 30 percent to 50 percent fixed income, and 50 percent to
70 percent equity.
For fiscal year 2013-2014, the City contributed, on an individual basis, for employees and retirees up
to the following amounts:
Unrepresented
SEL Local 347
D. Annual OPEB Cost and Net OPER Obligation
Retirees
12,199
12,199
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:
Total
Annual required contribution
$ 2,273,000
Interest on OPEB asset
(389,000)
Adjustment to annual required contribution
428,000
Annual OPEB cost (expense)
2,312,000
Contributions made outside of a trust
2,303,000
Decrease in OPEB asset
(9,000)
OPEB asset - beginning of year
6,223,930
OPEB asset - end of year
$ 6,214,930
19
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
14. POST -EMPLOYMENT HEALTH BENEFITS (Continued)
D. Annual OPEB Cost and Net OPER Obligation (Continued)
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, 2014 were as follows:
% of Annual
Annual OPEB OPEB
OPEB Annual Cost Asset
Fiscal Year Ended Cost Contribution Contributed (Obligation)
6/30/2012
$ 2,979,000 $
20,343,105
682.9%
$ 5,169,930
6/30/2013
1,625,000
2,679,000
164.9%
6,223,930
6/30/2014
2,312,000
2,303,000
99.6%
6,214,930
E. Funded Status and Funding Progress
As of the 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
For the Year Ended June 30, 2014
15. INDIVIDUAL FUND DISCLOSURES
A. Deficit Fund Balances and Net Position
Funds that have a deficit fund balance at June 30, 2014 are as follows:
Deficit Fund
Fund Balance
Major Funds:
Public Library Special Revenue Fund $ (9,111,684)
Non -Major Governmental Funds:
Proposition A (6)
BJA Law Enforcement Special Revenue Fund (846)
Miscellaneous Grants Special Revenue Fund (188,111)
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, 2014, expenditures exceeded appropriations in the following
programs/functions (legal level of budgetary control) of the respective funds:
16. DEFERRED COMPENSATION PLANIDEFINED 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, 2014, there were 759 participants in the plans. The City's contributions totaled $185,939,
and employees' contributions totaled $1,962,186.
67
Excess
Expenditures
Over
Funds
Appropriations Expenditures Appropriations
Non -Major Governmental Funds:
Miscellaneous Grants Special
Revenue Fund:
Capital outlay
$ 529,852 $ 732,059 $ (202,207)
Public Financing Authority
Debt Service Fund:
Interest and fiscal charges
1,589,192 1,589,277 (85)
16. DEFERRED COMPENSATION PLANIDEFINED 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, 2014, there were 759 participants in the plans. The City's contributions totaled $185,939,
and employees' contributions totaled $1,962,186.
67
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
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 $564,719 for the property/liability program and 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, 2014. Additionally, there are no known refunds or credits due to SDRMA.
At June 30, 2014, $50,000 was accrued by the City for general liability claims, and $2,107,763 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, 2012 resulted in the following:
Claims liability as of June 30, 2012 $ 140,545
Claims and changes in estimates during the year ended June 30, 2013 1,460,834
Claims and payments during the year ended June 30, 2013 (487,262)
Claims liability as of June 30, 2013 1,114,117
Claims and changes in estimates during the year ended June 30, 2014 1,613,412 ,
Claims and payments during the year ended June 30, 2014 (569,766)
Claims liability as of June 30, 2014 $ 2,157,763
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, 2014.
SDRMA has published its own financial report for the year ended June 30, 2013, which can be ,
obtained from SDRMA, 1112 1 Street, Suite 300, Sacramento, California 95814.
18. NON -COMMITMENT DEBT t
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 (the Golden Valley
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 Golden
Valley Assessment District. The principal amount of debt outstanding at June 30, 2014 was $385,000.
68
1
City of Santa Clarita
' Notes to Financial Statements
For the Year Ended June 30. 2014
18. NON -COMMITMENT DEBT (Continued)
B. 1915 Act Limited Obligation Improvements Bonds
' On January 27, 2000, $790,000 of 1915 Act Limited Obligation Improvement Bonds (1915 Vermont
Drive/Everett Drive Bonds) for the Vermont Drive/Everett Drive Improvement Assessment District (the
Vermont/Everett 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 Vermont/Everett Assessment District. The principal amount of the debt
outstanding at June 30, 2014 was $470,000.
C. Community Facilities District No. 2002-1 Special Tax Bonds
' On October 29, 2002, $17,370,000 of Special Tax bonds were issued for Community Facilities District
No. 2002-1 (the Community Facilities District). On October 12, 2012, these bonds were refunded with
the issuance of Community Facilities District No. 2002-1 (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, 2014 was $16,210,000.
' 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 (the Conservancy) to create 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, 2014, 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 (the
' District) to create 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's request, make
annual contributions. For the year ended June 30, 2014, the City contributed $110,000. 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.
M-11
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
21. COMMITMENTS AND CONTINGENCIES
A. Construction Commitments
The City has active construction projects as of June 30, 2014. At year-end, the City's commitments
with contractors for infrastructure projects are as follows:
Expenditures
Contract to Date as of Remaining
Amount June 30, 2014 Commitments
Pavement
$ 946,886
$ 576,786
$ 370,100
Bridges
11,626,157
6,803,260
4,822,897
Sidewalk
269,509
144,823
124,686
Medians
516,856
285,290
231,566
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.
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 categories.
These encumbrances are not separately classified in the financial statements and are summarized at
June 30, 2014 as follows:
General Fund
Other governmental funds
C. Contingencies
Amount
$ 378,989
16,149, 008
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 June 2013, a lawsuit was filed against the City alleging voting rights dilution and the
City has settled the dispute with the plaintiff. The maximum exposure to liability is $800,000, and
management and the City's legal counsel have reasonably estimated a $600,000 liability for plaintiff
attorney fees. This has been accrued in the Self Insurance Internal Service Fund at June 30, 2014.
In the opinion of management and legal counsel, there are no other liabilities that would have a
substantial adverse effect on the financial position of the City as of June 30, 2014.
70
City of Santa Clarita
' Notes to Financial Statements
For the Year Ended June 30. 2014
21. COMMITMENTS AND CONTINGENCIES (Continued)
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 started to specifically review and audit cities,
counties and public agencies to ensure that all applicable asset transfers have been reversed. The
purpose of this review would be to determine if any asset transfers made after January 1, 2011,
including, but not limited to, real and personal property, cash funds, accounts receivable, deeds of
' trust and mortgages, contract rights, and rights to payment of any kind, were unallowable.
In March 2011, the former redevelopment agency transferred $14.8 million of cash and other assets
' to the City that are under review by the California State Controller's Office.
While the City's management believes that the transfers of these assets were valid, management is
aware that it is possible that some, or all, of the transfers will need to be repaid to the successor
' agency. Since management is unable to determine what, if any, of the $14.8 million will need to be
repaid to the successor agency, the City has not reported a liability in the fund statements or entity -
wide statements as of June 30, 2014.
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.
71
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30. 2014
22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(Continued)
A. Cash and Investments
The balance of cash and investments at June 30, 2014 is classified in the accompanying financial
statements as follows:
RDA Successor
Agency
Cash and investments pooled with City $ 1,612,236
Restricted:
Cash and investments 3,494
Cash and investments with fiscal agent 1,165,418
Total $ 2,781,148
B. Land Held for Resale
As of June 30, 2014, the City has $1,011,031 of land held for resale, which is reported at fair value.
There were no changes in fair value during the current year.
C. Capital Assets
RDA Successor Agency:
Non -depreciable assets.
Land
Construction in progress
Total non -depreciable assets
Depreciable assets:
Site improvements
Infrastructure
Total depreciable assets
Less accumulated depredation:
Site improvements
Infrastructure
Total accumulated depredation
Total depreciable assets, net
Total capital assets, net
Balance Balance
July 1, 2013 Additions Deletions Transfers June 30, 2014
$ 532,878 $ - $ - $ - $ 532,878
393,341 (393,341)
926,219 (393,341) 532,878
110,310 - - - 110,310
3,894,000 393,341 4,287,341
4,004,310 393,341 4,397,851
(6,618) (4,413) - - (11,031)
The total depreciation expense charged to the RDA Successor Agency as of June 30, 2014 was
$90,160.
72
City of Santa Clarita
' Notes to Financial Statements
For the Year Ended June 30, 2014
' 22. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
(Continued)
' D. Long -Term Debt
Classification
Balance Balance Due Within Due Mom
July 1, 2013 Additions Deletions June 30, 2014 One Year Than One Year
' RDA Successor Agency:
Loans from the City of Santa Clanta $ 13,360,087 $ 33,381 $ $ 13,393,468 $ $ 13,393,468
Tax Allocation Bonds:
Series 2008 28,155,000= (470,000) 27,685,000 490,000 27,195,000
Housing Set -Aside 8,345,000 (140,000) 8,205,000 145,000 8,060,000
Less deferred amounts for
issuance discounts (138,256) 5,530 (132,726) (5,530) (127,196)
Total Tax Allocation Bonds 36,361,744 5,530 (610,000) 35,757,274 629,470 35,127,804
' Total $ 49,721,831 $ 38,911 $ (610,000) $ 49,150,742 $ 629,470 $ 48,521,272
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 LAIF interest rates.
' At June 30, 2014, 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 Fees Special Revenue Fund
accumulated to $7,903,770 and $5,489,698, respectively. The unpaid accrued interest of these notes
is $890,974 and $169,812, respectively.
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
were 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. This bond issue comprises $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, 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 4.75 percent for the serial
bonds and from 4.75 percent to 5.00 percent for the term bonds.
73
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
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,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2039
2040-2043
Total
Tax Allocation Bonds — Housino Set -Aside
Principal Interest Total
$ 490,000 $ 1,291,348 $ 1,781,348
510,000
1,271, 348
1,781,348
530,000
1,250, 548
1,780,548
550,000
1,228, 948
1,778,948
575,000
1,206,448
1,781,448
3,230,000
5,651,066
8,881,066
4,005,000
4,849,191
8,854,191
5,050,000
3,783,053
8,833,053
6,395,000
2,404,775
8,799,775
6,350,000
654,250
7,004,250
$ 27,685,000
$ 23,590 975
$ 51,275,975
On June 12, 2008, 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 comprises
$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.
74
City of Santa Clarita
Notes to Financial Statements
For the Year Ended June 30, 2014
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
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2039
2040-2043
Total
E. Deficit Net Position
$ 145,000
$ 388,856
$ 533,856
150,000
382,956
532,956
155,000
376,856
531,856
160,000
370,556
530,556
170,000
363,956
533,956
945,000
1,707,825
2,652,825
1,180,000
1,471,122
2,651,122
1,500,000
1,145,000
2,645,000
1,905,000
721,375
2,626,375
1,895,000
195,375
2,090,375
$ 8,205,000
$ 7,123,877
$ 15,328,877
As of June 30, 2014, the RDA Successor Agency Private -Purpose Trust Fund had a deficit net
position of $41,168,348. This will be reduced with future receipt of distributions from the
Redevelopment Property Tax Trust Fund from the County and potential asset sales.
75
76
REQUIRED SUPPLEMENTARY INFORMATION
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual
General Fund
For the Year Ended June 30, 2014
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
Fund balances, end of year
15,327,489
Original
Budget
Final
Budget
Actual
Variance From
Final Budget
Positive/
(Negative)
Revenues
20,419,720
619,709
20,697,152
21,040,180
Taxes
$ 67,520,934
$ 69,765,855
$ 73,746,061
$ 3,980,206
Licenses and permits
3,618,826
4,340,251
5,366,972
1,026,721
Intergovernmental
244,100
721,794
294,844
(426,950)
Charges for services
6,880,110
7,261,325
8,801,042
1,539,717
Investment income
1,814,094
1,027,458
1,018,077
(9,381)
Fines and forfeitures
519,000
574,000
545,983
(28,017)
Other revenue
45,000
46,000
134,995
88,995
Overhead reimbursement
3,550,200
3,550,200
-
(3,550,200)
Total revenues
84,192,264
87,286,883
89,907,974
2,621,091
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
Fund balances, end of year
15,327,489
17,615,329
14,211,854
3,403,475
21,039,625
21,039,429
20,419,720
619,709
20,697,152
21,040,180
20,319,194
720,986
13,223,354
14,389,118
11,566,617
2,822,501
5,819,794
5,969,023
5,461,356
507,667
1,281,683
1,895,657
1,666,884
228,773
77,389,097
81,948,736
73,645,625
8,303,111
6,803,167 5,338,147 16,262,349 10,924,202
2,167,287 2,582,196 2,647,420 65,224
(4,213,439) (4,355,191) (4,355,191) -
(2,046,152) (1,772,995) (1,707,771) 65,224
$ 4,757,015 $ 3,565,152 14,554,578 $ 10,989,426
77
94,337,301
$ 108,891,879
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, 2014
Expenditures
Current:
Public works
Capital outlay
Debt service:
Interest and fiscal charges
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
Fund balances, end of year
199,844 200,968 179,262 21,706
4,519,239 15,006,053 14,154,493 851,560
241,319 241,319 171,598 69,721
4,960,402 15,448,340 14,505,353 942,987
(3,779,144) (13,812,338) (14,173,059) (360,721)
(7,080) (75,807) (75,807) -
5,014,275 11,297,334 6,283,059
(7,080) 4,938,468 11,221,527 6,283,059
$ (3,786,224) $ (8873,870) (2,951,532) $ 5,922.338
78
12,260,034
$ 9,308,502
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual (Negative)
Revenues
Investment income
$ 321,258
$ 321,258
$ 332,294 $ 11,036
Developer fees
860,000
1,314,744
- (1,314,744)
Total revenues
1,181,258
1,636,002
332,294 (1,303,708)
Expenditures
Current:
Public works
Capital outlay
Debt service:
Interest and fiscal charges
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
Fund balances, end of year
199,844 200,968 179,262 21,706
4,519,239 15,006,053 14,154,493 851,560
241,319 241,319 171,598 69,721
4,960,402 15,448,340 14,505,353 942,987
(3,779,144) (13,812,338) (14,173,059) (360,721)
(7,080) (75,807) (75,807) -
5,014,275 11,297,334 6,283,059
(7,080) 4,938,468 11,221,527 6,283,059
$ (3,786,224) $ (8873,870) (2,951,532) $ 5,922.338
78
12,260,034
$ 9,308,502
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, 2014
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 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
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 5,454,474 $ 5,454,474 $ 5,143,664 $ (310,810)
80,000 80,000 75,000
(5,000)
- - 4,613
4,613
175,000 175,000 178,516
3,516
5,709,474 5,709,474 5,401,793
(307,681)
4,804,983 4,804,888 4,680,637 124,251
- 662,958 515,225 147,733
452,959
452,959
47,174
405,785
104,945
104,945
95,352
9,593
5,362,887
6,025,750
5,338,388
687,362
346,587 (316,276) 63,405 379,681
(5,138) (5,138) (5,138)
(5,138) (5,138) (5,138) -
$ 341,449 $ (321,414) 58,267 $ 379,681
79
(9,169,951)
$ (9,111,684)
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, 2014
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
14,180,081
14,308,180
12,765,907
1,542,273
Variance From
14,676,500
8,447,530
6,228,970
23,020,398
Final Budget
21,213,437
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Taxes
$ 768,043
$ 768,043
$ 837,266
$ 69,223
Special assessments
20,804,616
20,804,616
22,690,306
1,885,690
Investment income
157,170
157,170
305,295
148,125
Total revenues
21,729,829
21,729,829
23,832,867
2,103,038
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
14,180,081
14,308,180
12,765,907
1,542,273
8,840,317
14,676,500
8,447,530
6,228,970
23,020,398
28,984,680
21,213,437
7,771,243
(1,290,569) (7,254,851) 2,619,430 9,874,281
(204,113) (204,113) (204,113)
(204,113) (204,113) (204,113) -
$ (1,494,682) $ (7,458,964) 2,415,317 $ 9,874,281
W
25,939,123
$ 28,354,440
City of Santa Clarita
t Schedule of Funding Progress
For the Year Ended June 30. 2014
' 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.
B. Other Post -Employment Benefits
' A. Defined Benefit Pension Plan
' The funded status of the City's other post -employment benefits plan is as follows (in
The funded status of the City's defined benefit pension plan
for the miscellaneous employees is as
' follows (in thousands):
(D)
(E)
(F)
(A)
(B)
(C)
(D) (E) (F)
(Unfunded)
'
(Unfunded)
(Unfunded)
'
Actuarial
(Unfunded)
Actuarial
Entry Age
Actuarial
Liability as
Actuarial Actuarial
Actuarial
Accrued
Funded Annual Percentage of
Valuation Value of
Accrued
Liability
Ratio Covered Covered Payroll
Date' Assets (AVA)
Liability
[(B) -(A)]
[(A)/(B)] Payroll [(C)/(E)]
6/30/2011 $ 82,323 $
99,379
$ 17,056
82.84% $ 25,381 67,20%
'
6/30/2012 91,062
108,652
17,590
83.81% 24,198 72.69%
6/30/2013 91,449
120,474
29,025
75.91% 26,697 108.72%
tBased 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)
(D)
(E)
(F)
(Unfunded)
'
(Unfunded)
Actuarial
Actuarial
Actuarial
Liability as
Actuarial Actuarial Accrued
Accrued
Funded
Percentage of
' Valuation Asset Liability
Liability
Ratio
Covered
Covered Payroll
Date' Value Entry Age
[(B) -(A)]
[(A)/(B)]
Payroll
[(C)/(E)]
7/1/2006 $ - $ 24,046 $ (24,046)
7/1/2010 - 41,425 (41,425)
7/1/2012 19,928 30,879 (10,951)
Based on most recent actuarial valuation available.
81
0.00% $ 21,200 -113.42%
0.00% 25,094 -165.08%
64.54% 23,880 -45.86%
City of Santa Clarita
Notes to Required Supplementary Information
For the Year Ended June 30, 2014
BUDGETARY INFORMATION
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in
the United States of America 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.
[L%
City of Santa Clarita
Non -Major Governmental Funds
As of and for the Year Ended June 30, 2014
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 (S13821).
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.
Surface Transportation Program — To account for receipts and disbursements associated with the
Surface Transportation Program 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.
83
City of Santa Clarke
Non -Major Governmental Funds
As of and for the Year Ended June 30, 2014
Special Revenue Funds (Continued)
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.
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 Tourism Marketing 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).
OPSD (Open Space Preservation District) — 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.
Tourism Marketing Bureau — To account for monies received from local and regional tourism -related
organizations restricted for tourism and business development within the City's boundaries.
84
City of Santa Clarita
' Non -Major Governmental Funds
As of and for the Year Ended June 30, 2014
' 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.
85
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Developer
Special Revenue Funds
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 1,368,940 $ 39,248 $ 280,892 $ 910
Due to other funds - - - -
Totalliabilities 1,368,940 39,248 280,892 910
Deferred inflows of resources
Unavailable revenues 117,823 - - -
Total deferred inflows of
resources 117,823 - - -
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
249,510 - -
3,121,772 77,543 3,147,344 -
612,829 - - -
2,353 -
(6)
3,986,464 77,543 3,147,344 (6)
$ 5,473,227 $ 116.791 $ 3,428,236 $ 904
0
Fees
Bikeway
Gas Tax
Proposition A
Assets
Cash and investments
$ 5,094,335
$ 116,527
$ 2,807,787
$ 902
Receivables:
Accounts, net
-
-
12,614
-
Interest
11,559
264
6,039
2
Taxes
-
-
Loans
-
Notes to RDA Successor Agency
5,489,698
-
-
-
Allowance for doubtful accounts
(5,489,698)
-
-
-
Prepaid costs
-
-
-
-
Due from other governments
-
-
601,796
Advances to other funds
117,823
-
-
-
Land held for resale
249,510
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total assets
$ 5,473,227
$ 116,791
$ 3,428,236
$ 904
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 1,368,940 $ 39,248 $ 280,892 $ 910
Due to other funds - - - -
Totalliabilities 1,368,940 39,248 280,892 910
Deferred inflows of resources
Unavailable revenues 117,823 - - -
Total deferred inflows of
resources 117,823 - - -
Fund balances (deficit)
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances (deficit)
Total liabilities, deferred inflow
of resources and fund balances
249,510 - -
3,121,772 77,543 3,147,344 -
612,829 - - -
2,353 -
(6)
3,986,464 77,543 3,147,344 (6)
$ 5,473,227 $ 116.791 $ 3,428,236 $ 904
0
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Special
Special Revenue Funds
Liabilities, deferred inflows of resources
Assessment State Park
TDA Traffic Safety
Assets
' and fund balances
Cash and investments
$ 5,348,758 $ -
$ 7,366,813 $
'
Receivables:
Liabilities
_
Accounts, net
14,889
Interest
12,971 -
16,716 -
Taxes
84,357 -
- 73,983
Loans
307,926
-
Notes to RDA Successor Agency
'
Total liabilities
442,932
Allowance for doubtful accounts
-
- -
Prepaid costs
_
20,604
Due from other governments
314,902
543,225
Advances to other funds
- -
- -
Land held for resale
- -
- -
1 Restricted assets:
Cash and investments
- -
- -
Cash and investments with fiscal agents
- -
- -
Total assets
t
$ 5,481,579 $ 314,902
$ 7,926,754 $ 73,983
Liabilities, deferred inflows of resources
' and fund balances
Liabilities
Accounts payable and accrued liabilities
$ 442,932 $
6,976 $
742,892 $
-
Due to other funds
-
307,926
-
73,513
'
Total liabilities
442,932
314,902
742,892
73,513
Deferred inflows of resources
Unavailable revenues
Total deferred inflows of
resources
-
-
' Fund balances (deficit)
Nonspendable
20,604
-
-
-
Restricted
5,018,043
-
7,183,862
470
'
Committed
Assigned
-
-
Unassigned
-
-
-
Total fund balances (deficit)
5,038,647
-
7,183,862
470
'
Total liabilities, deferred inflow
of resources and fund balances
$ 5,481,579 $
314,902 $
7,926,754 $
73,983
(Continued)
1-N
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Revenue Funds
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 110,612 $ 199 $ 286,818 $ 16,672
Due to other funds 54,368 - - 1,599
Total liabilities 164,980 199 286,818 18,271
Deferred inflows of resources
Unavailable 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
149,234 - -
149,234
267,816 5,957,998
- 267,816 5,957,998 - '
$ 314 214 $ 268,015 $ 6,244,816 $ 18,271
M
Surface
Transportation
CDBG
AQMD
Stormwater
Program
Assets
Cash and investments
$ -
$ 201,531
$ 5,842,327
$ -
Receivables:
Accounts, net
-
-
41,405
-
Interest
-
457
13,211
-
Taxes
-
-
48,378
-
Loans
149,234
-
-
_
Notes to RDA Successor Agency
-
Allowance for doubtful accounts
Prepaid costs
-
-
-
_
Due from other governments
164,980
66,027
299,495
18,271
Advances to other funds
-
-
-
_
Land held for resale
-
-
-
_
Restricted assets:
Cash and investments
-
_
-
Cash and investments with fiscal agents
-
-
_
_
Total assets
$ 314,214
$ 268,015
$ 6,244,816
$ 18,271
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 110,612 $ 199 $ 286,818 $ 16,672
Due to other funds 54,368 - - 1,599
Total liabilities 164,980 199 286,818 18,271
Deferred inflows of resources
Unavailable 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
149,234 - -
149,234
267,816 5,957,998
- 267,816 5,957,998 - '
$ 314 214 $ 268,015 $ 6,244,816 $ 18,271
M
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Revenue Funds
'
BJA Law
Enforcement
Supplemental
Law Grant
HOME
Library
Facilities Fees
Assets
Cash and investments
$
$
-
$
-
$
156,945
'
Receivables:
_
Accounts, net
-
Interest
-
-
-
356
Taxes
-
-
-
'
Loans
_
2,275,743
Notes to RDA Successor Agency
-
-
-
-
Allowance for doubtful accounts
'
costs
_
_
Prepaid
Due from other governments
8,697
105,582
-
-
Advances to other funds
-
-
-
-
' Land held for resale
-
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total assets
$
8,697
$
105 582
$
2,275,743
$
157,301
Liabilities, deferred inflows of resources
' and fund balances
Liabilities
Accounts payable and accrued liabilities
$
3,213
$
7,059
$
-
$
-
Due to other funds
6,330
80,177
'
Total liabilities
9,543
87,236
=
_
Deferred inflows of resources
'
Unavailable revenues
2,275,743
Total deferred inflows of
resources
-
-
2,275,743
-
Fund balances (deficit)
Nonspendable
-
-
-
-
Restricted
-
18,346=
157,301
'
Committed
Assigned
-
-
-
-
Unassigned
(846)
-
' Total fund balances (deficit)
(846)
18,346
-
157,301
Total liabilities, deferred inflow
of resources and fund balances
$
8,697
$
105,582
$
2,275,743
$
157,301
'
(Continued)
0
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 3,701 $ 348,516 $ 466,952 $
Due to other funds - 1,532,244 -
Total liabilities 3,701 1,880,760 466,952 -
Deferred inflows of resources
Unavailable 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
- 1,003,948 182,528 -
1,003,948 182,528 -
1,114,017 1,171,046 259,832 2,314,632 '
1,114,017
1,171,046
Special Revenue Funds
2,314,632 '
$ 1,117,718
Public
909,312
$ 2,314,632
1
Education and
Government
Proposition C
Federal Grants
Measure R
Assets
Cash and investments
$ 992,701
$ 2,170,070
$ 137,254
$ 2,309,392
Receivables:
Accounts, net
-
-
-
-
Interest
2,252
4,924
-
5,240
Taxes
122,765
-
-
-
Loans
-
-
-
-
Notes to RDA Successor Agency
-
-
-
-
Allowance for doubtful accounts
-
-
-
-
Prepaid costs
-
-
-
-
Due from other governments
-
1,880,760
772,058
-
Advances to other funds
-
-
-
-
Land held for resale
-
-
-
-
Restricted assets:
Cash and investments
-
-
-
-
Cash and investments with fiscal agents
-
-
-
-
Total assets
$ 1,117,718
$ 4,055,754
$ 909,312
$ 2,314,632
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ 3,701 $ 348,516 $ 466,952 $
Due to other funds - 1,532,244 -
Total liabilities 3,701 1,880,760 466,952 -
Deferred inflows of resources
Unavailable 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
- 1,003,948 182,528 -
1,003,948 182,528 -
1,114,017 1,171,046 259,832 2,314,632 '
1,114,017
1,171,046
259,832
2,314,632 '
$ 1,117,718
$ 4 055 754 $
909,312
$ 2,314,632
1
El
City of Santa Clarita
' Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
12,238
$ 38,424 $
167,438
$ 9,072
'
-
Special Revenue Funds
217,923
-
Tourism
12,238
38,424
385,361
9,072
Marketing
Miscellaneous
Park
'
District
OSPD
Grants
Dedication
Assets
Total deferred inflows of
Cash and investments
$ 337,227
$ 5,685,237
$ -
$ 56,493
'
Receivables:
Fund balances (deficit)
Accounts, net
-
6,497
-
-
Interest
765
12,813
-
128
' Taxes
64,264
25,790
-
=
Loans
Assigned
-
-
_
Notes to RDA Successor Agency
-
-
-
-
Allowance for doubtful accounts
-
390,018
11,709,338
(188,111)
'
Prepaid costs
Total liabilities, deferred inflow
_
Due from other governments
-
-
514,265
-
Advances to other funds
-
-
-
-
1 Land held for resale
-
-
-
-
Restricted assets:
Cash and investments
-
4,695,421
-
-
Cash and investments with fiscal agents
-
1,322,004
-
-
'
Total assets
$ 402,256
$ 11,747,762
$ 514,265
$ 56,621
Liabilities, deferred inflows of resources
' and fund balances
Liabilities
Accounts payable and accrued liabilities $
12,238
$ 38,424 $
167,438
$ 9,072
Due to other funds
-
-
217,923
-
Totalliabilities
12,238
38,424
385,361
9,072
Deferred inflows of resources
'
Unavailable revenues
317,015
Total deferred inflows of
resources
-
-
317,015
-
Fund balances (deficit)
Nonspendable
-
-
-
-
Restricted
390,018
11,709,338
47,549
Committed
=
Assigned
-
-
-
-
Unassigned
-
-
(188,111)
' Total fund balances (deficit)
390,018
11,709,338
(188,111)
47,549
Total liabilities, deferred inflow
of resources and fund balances $
402,256
$ 11,747,762 $
514,265
$ 56,621
'
(Continued)
91
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Due to other funds
Total liabilities
Deferred inflows of resources
Unavailable 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
729,741 $ -
729,741
4,945,845 39,702
3,409,764 10
4,945,845 39,702 3,409,764 10
$ 4,945,845 $ 39,702 $ 4,139 505 $ 10
92
Special
Revenue Funds
Capital Projects Funds
Housing Tourism
General Public
Successor Marketing
Capital Financing
Agency Bureau
Projects Authority
Assets
Cash and investments
$ - $ 39,612
$ 4,139,505 $ 10
Receivables:
Accounts, net
- -
- -
Interest
- 90
Taxes
- -
- -
Loans
- -
- -
Notes to RDA Successor Agency
- -
- -
Allowance for doubtful accounts
- -
- -
Prepaid costs
- -
- -
Due from other governments
- -
- -
Advances to other funds
- -
- -
Land held for resale
939,459 -
- -
Restricted assets:
Cash and investments
4,006,386 -
- -
Cash and investments with fiscal agents
- -
- -
Total assets
$ 4,945,845 $ 39,702
$ 4,139,505_ $ 10
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities
Due to other funds
Total liabilities
Deferred inflows of resources
Unavailable 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
729,741 $ -
729,741
4,945,845 39,702
3,409,764 10
4,945,845 39,702 3,409,764 10
$ 4,945,845 $ 39,702 $ 4,139 505 $ 10
92
City of Santa Clarita
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2014
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ - $ 5,083,445
Due to other funds - 2,274,080
Total liabilities - 7,357,525
Deferred inflows of resources
Unavailable revenues
Debt Service
Funds
Public
Financing
Authority
Total
Governmental
Funds
Assets
resources
- 4,046,291
Cash and investments
$ 2
$ 42,803,428
Receivables:
Restricted
186 46,942,660
Accounts, net
-
75,405
Interest
-
87,787
Taxes
-
419,537
Loans
-
2,424,977
Notes to RDA Successor Agency
-
5,489,698
Allowance for doubtful accounts
-
(5,489,698)
Prepaid costs
-
20,604
Due from other governments
-
5,290,058
Advances to other funds
-
117,823
Land held for resale
-
1,188,969
Restricted assets:
Cash and investments
-
8,701,807
Cash and investments with fiscal agents
184
1,322,188
Total assets
$ 186
$ 62,452,583
Liabilities, deferred inflows of resources
and fund balances
Liabilities
Accounts payable and accrued liabilities $ - $ 5,083,445
Due to other funds - 2,274,080
Total liabilities - 7,357,525
Deferred inflows of resources
Unavailable revenues
- 4,046,291
Total deferred inflows of
resources
- 4,046,291
Fund balances (deficit)
Nonspendable
- 270,114
Restricted
186 46,942,660
Committed
- 612,829
Assigned
- 3,412,127
Unassigned
- (188,963)
Total fund balances (deficit)
186 51,048,767
Total liabilities, deferred inflow
of resources and fund balances
$ 186 $ 62,452,583
93
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2014
Developer
Special Revenue Funds
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)
1,311,109 - - -
4,026,807 34,034
327,759 123,964 692,172 94,014
1,638,868 123,964 4,718,979 128,048
716,955 (5,391) 1,638,569 3,355,029
Transfers in
Fees
Bikeway
Gas Tax
Proposition A
Revenues
Total other financing sources (uses)
(61,937)
41,122 (4,177,523)
Net change in fund balances
Taxes
$ -
$
$
$
Special assessments
-
-
Intergovernmental
-
118,093
6,318,767
3,478,386
Charges for services
-
-
-
-
Investment income (loss)
20,329
480
11,971
4,691
Fines and forfeitures
-
-
-
-
Developer fees
2,335,494
Other revenue
-
-
26,810
-
Total revenues
2,355,823
118,573
6,357,548
3,483,077
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)
1,311,109 - - -
4,026,807 34,034
327,759 123,964 692,172 94,014
1,638,868 123,964 4,718,979 128,048
716,955 (5,391) 1,638,569 3,355,029
Transfers in
125,503
233,070
Transfers out
(187,440)
(191,948) (4,177,523)
Total other financing sources (uses)
(61,937)
41,122 (4,177,523)
Net change in fund balances
655,018
(5,391) 1,679,691 (822,494)
Fund balances (deficit), beginning of year 3,331,446 82,934 1,467,653 822,488
Fund balances (deficit), end of year $ 3,986,464 $ 77,543 $ 3,147,344 $ (6)
94
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2014
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
4,978,241 - -
- 170,914 9,957,849
60,629 15,360 470
- - 1,115,174
69,465 - - -
5,108,335 170,914 9,973,209 1,115,644
3,221,032
- 170,914 -
1,129,650 - 4,382,765
37,878 389,456
4,388,560 170,914 4,772,221
719,775 5,200,988 1,115,644
Transfers in 109,919 4,977 - Transfers out (635,604) (5,666) (1,115,174)
Total other financing sources (uses) (525,685) (689) - (1,115,174)
Net change in fund balances 194,090 (689) 5,200,988 470
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
4,844,557 689 1,982,874 -
$ 5,038,647 $ - $ 7,183,862 $ 470
(Continued)
95
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2014
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)
3,909
- 18,287 2,904,828
719,824 - -
- 49,660 878,163 78,773
230,000
29,186 - -
979,010 67,947 3,786,900 78,77T—
(1,809) 188,483 (470,373) 124,712
Transfers in 23,420
Transfers out (63,888)
Total other financing sources (uses) - (40,468) -
Net change in fund balances (1,809) 188,483 (510,841) 124,712
Fund balances (deficit), beginning of year 1,809 79,333 6,468,839 (124 712)
Fund balances (deficit), end of year $ - $ 267,816 $ 5,957,998 $
DU
Special Revenue Funds
Surface
Transportation
CDBG AQMD
Stormwater
Program
Revenues
Taxes
$ $
$
$
Special assessments
2,940,538
-
Intergovernmental
977,201 255,577
-
203,485
Charges for services
_ _
Investment income (loss)
- 853
76,924
Fines and forfeitures
_ _
Developer fees
_
Other revenue
-
299,065
-
Total revenues
977,201 256,430
3,316,527
203,485
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)
3,909
- 18,287 2,904,828
719,824 - -
- 49,660 878,163 78,773
230,000
29,186 - -
979,010 67,947 3,786,900 78,77T—
(1,809) 188,483 (470,373) 124,712
Transfers in 23,420
Transfers out (63,888)
Total other financing sources (uses) - (40,468) -
Net change in fund balances (1,809) 188,483 (510,841) 124,712
Fund balances (deficit), beginning of year 1,809 79,333 6,468,839 (124 712)
Fund balances (deficit), end of year $ - $ 267,816 $ 5,957,998 $
DU
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2014
Revenue Funds
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
19,485 327,000
4,083
19,485 327,000 4,083
31,380 (37) 265,266
Other financing sources (uses)
Transfers in -
Transfers out - (109,731)
Total other financing sources (uses) - - - (109,731)
Net change in fund balances - 31,380 (37) 155,535
Fund balances (deficit), beginning of year
' Fund balances (deficit), end of year
(846) (13,034) 37 1,766
$ (846) $ 18,346 $ - $ 157,301
kL
(Continued)
BJA Law
Supplemental
Library
Enforcement
Law Grant HOME
Facilities Fees
Revenues
Taxes
$
$ $
$
Special assessments
Intergovernmental
19,485
358,380 4,046
Charges for services
-
- -
-
Investment income (loss)
-
- -
(237)
Fines and forfeitures
-
- -
-
Developer fees
-
- -
265,503
Other revenue
-
- -
-
Total revenues
19,485
358,380 4,046
265,266
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
19,485 327,000
4,083
19,485 327,000 4,083
31,380 (37) 265,266
Other financing sources (uses)
Transfers in -
Transfers out - (109,731)
Total other financing sources (uses) - - - (109,731)
Net change in fund balances - 31,380 (37) 155,535
Fund balances (deficit), beginning of year
' Fund balances (deficit), end of year
(846) (13,034) 37 1,766
$ (846) $ 18,346 $ - $ 157,301
kL
(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, 2014
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)
240,770 -
- 127
1,650
3,095,459 2,643,548
240,770 3,097,109 2,643,675
240,346 2,615,731 145,802 2,152,404
Transfers in 1,050,123
Transfers out (1,740,227)
Total other financing sources (uses) (1,740,227) 1,050,123 -
Net change in fund balances 240,346 875,504 1,195,925 2,152,404
Fund balances (deficit), beginning of year 873,671 295,542 (936,093) 162,228
Fund balances (deficit), end of year $ 1,114,017 $ 1,171,046 $ 259,832 $ 2,314632
99
Special Revenue Funds
Public
Education and
Federal
Government
Proposition C
Grants
Measure R
Revenues
Taxes
$ 472,138
$ -
$ - $
_
Special assessments
_
Intergovernmental
5,716,298
2,789,477
2,153,225
Charges for services
_
_
_
-
Investment income (loss)
8,978
(3,458)
(821)
Fines and forfeitures
-
Developer fees
Other revenue
_
_
Total revenues
481,116
5,712,840
2,789,477
2,152,404
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)
240,770 -
- 127
1,650
3,095,459 2,643,548
240,770 3,097,109 2,643,675
240,346 2,615,731 145,802 2,152,404
Transfers in 1,050,123
Transfers out (1,740,227)
Total other financing sources (uses) (1,740,227) 1,050,123 -
Net change in fund balances 240,346 875,504 1,195,925 2,152,404
Fund balances (deficit), beginning of year 873,671 295,542 (936,093) 162,228
Fund balances (deficit), end of year $ 1,114,017 $ 1,171,046 $ 259,832 $ 2,314632
99
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2014
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)
312,056 351,458 451,547 -
- - 59,897 -
8,000 -
141,965 -
34,000 732,059 117,893
- 133 - -
312,056 385,591 1,393,468 117,893
205,091 1,818,553 232,770 (115,916)
Transfers in 40,482
Transfers out (808,628)
Total other financing sources (uses) - (768,146) -
Net change in fund balances 205,091 1,050,407 232,770 (115,916)
Fund balances (deficit), beginning of year
' Fund balances (deficit), end of year
184,927 10,658,931 (420,881) 163,465
$ 390,018 $ 11,709,338 $ (188,111) $ 47,549
(Continued)
Special Revenue Funds
Tourism
Marketing
Miscellaneous
Park
District
OSPD
Grants
Dedication
Revenues
Taxes
$ -
$ -
$ -
$ -
Special assessments
-
2,143,520
Intergovernmental
-
-
1,626,238
Charges for services
514,906
-
-
-
Investment income (loss)
2,241
50,624
1,977
Fines and forfeitures
-
-
-
Developer fees
-
Other revenue
-
10,000
Total revenues
517,147
2,204,144
1,626,238
1,977
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)
312,056 351,458 451,547 -
- - 59,897 -
8,000 -
141,965 -
34,000 732,059 117,893
- 133 - -
312,056 385,591 1,393,468 117,893
205,091 1,818,553 232,770 (115,916)
Transfers in 40,482
Transfers out (808,628)
Total other financing sources (uses) - (768,146) -
Net change in fund balances 205,091 1,050,407 232,770 (115,916)
Fund balances (deficit), beginning of year
' Fund balances (deficit), end of year
184,927 10,658,931 (420,881) 163,465
$ 390,018 $ 11,709,338 $ (188,111) $ 47,549
(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, 2014
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)
55,035
2,501,659
55,035 2,501,659 -
5,056,509 39,702 (2,415,025) -
Transfers in - - 1,575,064 798,033
Transfers out (1,050,123) - - (798,297)
Total other financing sources (uses) (1,050,123) - 1,575,064 (264)
Net change in fund balances 4,006,386 39,702 (839,961) (264)
Fund balances (deficit), beginning of year 939,459 - 4,249,725 274
Fund balances (deficit), end of year $ 4,945,845 $ 39,702 $ 3,409,764 $ 10
100
Special
Revenue Funds
Capital Projects Funds
Housing Tourism
General Public
Successor Marketing
Capital Financing
Agency Bureau
Projects Authority
Revenues
Taxes
$ - $ -
$ - $ -
Special assessments
-
Intergovernmental
-
Charges for services
- 13,029
Investment income (loss)
- 94
Fines and forfeitures
- -
Developer fees
- -
Other revenue
5,056,509 81,614
86,634
Total revenues
5,056,509 94,737
86,634 -
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)
55,035
2,501,659
55,035 2,501,659 -
5,056,509 39,702 (2,415,025) -
Transfers in - - 1,575,064 798,033
Transfers out (1,050,123) - - (798,297)
Total other financing sources (uses) (1,050,123) - 1,575,064 (264)
Net change in fund balances 4,006,386 39,702 (839,961) (264)
Fund balances (deficit), beginning of year 939,459 - 4,249,725 274
Fund balances (deficit), end of year $ 4,945,845 $ 39,702 $ 3,409,764 $ 10
100
City of Santa Clarita
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Non -Major Governmental Funds
For the Year Ended June 30, 2014
Expenditures
Debt Service
Funds
Public
Financing
Authority
Total
Governmental
Funds
Revenues
Taxes
$ -
$ 472,138
Special assessments
-
10,062,299
Intergovernmental
-
34,147,421
Charges for services
-
527,935
Investment income (loss)
107
251,212
Fines and forfeitures
-
1,115,174
Developer fees
2,600,997
Other revenue
-
5,630,097
Total revenues
107
54,807,273
Expenditures
Current:
General government
-
4,635,807
Public safety
-
1,717,618
Parks, recreation and community service
-
178,914
Public works
-
12,639,986
Community development
-
723,907
Capital outlay
-
11,796,457
Debt service:
Principal
1,560,000
1,790,000
Interest and fiscal charges
1,589,277
1,618,596
Total expenditures
3,149,277
35,101,285
Excess (deficiency) of revenues
over(under)expenditures
(3,149,170)
19,705,988
Other financing sources (uses)
Transfers in 3,149,436 7,110,027
Transfers out - (10,884,249)
Total other financing sources (uses) 3,149,436 (3,774,222)
Net change in fund balances 266 15,931,766
Fund balances (deficit), beginning of year (80) 35,117,001
Fund balances (deficit), end of year $ 186 $ 51,048,767
101
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, 2014
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
'
(Negative)
Revenues
Investment income
$ 10,549
$ 10,549
$ 20,329
$ 9,780
Developer fees
1,627,000
1,637,000
2,335,494
698,494
Total revenues
1,637,549
1,647,549
2,355,823
708,274
Expenditures
Current:
Public safety
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
1,311,109 1,311,109
2,328,000 2,611,896 327,759 2,284,137
2,328,000 3,923,005 1,638,868 2,284,137
(690,451) (2,275,456) 716,955 2,992,411
125,503 125,503
(16,000) (187,440) (187,440) -
(16,000) (61,937) (61,937) -
$ (706,451) $ (2,337,393) 655,018 $ 2,992,411
102
3,331,446
$ 3,986,464
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, 2014
Expenditures
Capital outlay 134,541 211,548 123,964 87,584
Total expenditures 134,541 211,548 123,964 87,584
Excess (deficiency) of revenues
over(under)expenditures 381 (76,626) (5,391) 71,235
Net change in fund balances $ 381 $ (76,626) (5,391) $ 71,235
Fund balances, beginning of year 82,934
Fund balances, end of year $ 77,543
103
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Intergovernmental
$ 134,541
$ 134,541
$ 118,093
$ (16,448)
Investment income
381
381
480
99
Total revenues
134,922
134,922
118,573
(16,349)
Expenditures
Capital outlay 134,541 211,548 123,964 87,584
Total expenditures 134,541 211,548 123,964 87,584
Excess (deficiency) of revenues
over(under)expenditures 381 (76,626) (5,391) 71,235
Net change in fund balances $ 381 $ (76,626) (5,391) $ 71,235
Fund balances, beginning of year 82,934
Fund balances, end of year $ 77,543
103
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, 2014
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
4,021,355 4,067,774 4,026,807 40,967
1,787,409 2,374,205 692,172 1,682,033
5,808,764 6,441,979 4,718,979 1,723,000
(473,947) (1,107,162) 1,638,569 2,745,731
233,070 233,070 233,070
(411,358) (191,948) (191,948)
(178,288) 41,122 41,122 -
$ (652,235) $ (1,066,040) 1,679,691 $ 2,745,731
104
1,467,653
$ 3,147,344
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Intergovernmental
$ 5,320,189
$ 5,320,189
$ 6,318,767
$ 998,578
Investment income
14,628
14,628
11,971
(2,657)
Other revenue
-
-
26,810
26,810
Total revenues
5,334,817
5,334,817
6,357,548
1,022,731
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
4,021,355 4,067,774 4,026,807 40,967
1,787,409 2,374,205 692,172 1,682,033
5,808,764 6,441,979 4,718,979 1,723,000
(473,947) (1,107,162) 1,638,569 2,745,731
233,070 233,070 233,070
(411,358) (191,948) (191,948)
(178,288) 41,122 41,122 -
$ (652,235) $ (1,066,040) 1,679,691 $ 2,745,731
104
1,467,653
$ 3,147,344
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, 2014
Expenditures
Variance From
Current:
Final Budget
Public works
Original
Final
34,034
Positive/
Capital outlay
Budget
Budget
Actual
(Negative)
Revenues
128,438
147,344
128,048
19,296
Intergovernmental
$ 3,020,268
$ 3,462,710
$ 3,478,386
$ 15,676
Investment income
-
-
4,691
4,691
Total revenues
3,020,268
3,462,710
3,483,077
20,367
Expenditures
Current:
Public works
35,170
35,170
34,034
1,136
Capital outlay
93,268
112,174
94,014
18,160
Total expenditures
128,438
147,344
128,048
19,296
Excess (deficiency) of revenues
over (under) expenditures
2,891,830
3,315,366
3,355,029
39,663
Other financing sources (uses)
Transfers out (2,891,830) (4,144,746) (4,177,523) (32,777)
Total other financing sources (uses) (2,891,830) (4,144,746) (4,177,523) (32,777)
Net change in fund balances $ - $ (829,380) (822,494) $ 6,886
Fund balances, beginning of year 822,488
Fund balances (deficit), end of year $ (6)
105
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, 2014
Expenditures
Current:
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
3,911,110
3,913,747
3,221,032
692,715
Variance From
1,388,278
1,129,650
258,628
4,000
Final Budget
37,878
Original
Final
5,421,438
Positive/
1,032,878
Budget
Budget
Actual
(Negative)
Revenues
Special assessments
$ 4,824,283
$ 4,824,283
$ 4,978,241
$ 153,958
Charges for services
5,000
165,000
-
(165,000)
Investment income
25,946
25,946
60,629
34,683
Other revenue
-
-
69,465
69,465
Total revenues
4,855,229
5,015,229
5,108,335
93,106
Expenditures
Current:
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
3,911,110
3,913,747
3,221,032
692,715
1,414,810
1,388,278
1,129,650
258,628
4,000
119,413
37,878
81,535
5,329,920
5,421,438
4,388,560
1,032,878
(474,691) (406,209) 719,775 1,125,984
Transfers in
106,420
109,919
109,919 -
Transfers out
(17,179)
(635,554)
(635,604) (50)
Total other financing sources (uses)
89,241
(525,635)
(525,685) (50)
Net change in fund balances
$ (385,450) $
(931,844)
194,090 $ 1,125,934
Fund balances, beginning of year
Fund balances, end of year
106
4,844,557
$ 5,038,647
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ 180,401 $ 183,682 $ 170,914 $ (12,768)
Total revenues 180,401 183,682 170,914 (12,768)
Expenditures
Current:
Parks, recreation and community service 180,401 171,839 170,914 925
Total expenditures 180,401 171,839 170,914 925
Excess (deficiency) of revenues
over (under) expenditures - 11,843 - (11,843)
Other financing sources (uses)
Transfers in - 4,977 4,977 -
Transfers out (5,666) (5,666)
Total other financing sources (uses) (689) (689)
Net change in fund balances $ $ 11,154 (689)
Fund balances, beginning of year 689
Fund balances, end of year $
107
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, 2014
108
Original
Budget
Final
Budget
Actual
Variance From
Final Budget
Positive/
(Negative)
Revenues
Intergovernmental
$ 7,175,422
$ 10,597,117
$ 9,957,849
$ (639,268)
Investment income
-
-
15,360
15,360
Total revenues
7,175,422
10,597,117
9,973,209
(623908)
Expenditures
Current:
Public works
1,910
4,491,577
4,382,765
108,812
Capital outlay
6,946,600
8,088,413
389,456
7,698,957
Total expenditures
6,948,510
12,579,990
4,772,221
7,807,769
Excess (deficiency) of revenues
over (under) expenditures
226,912
(1,982,873)
5,200 988
7,183,861
Other financing sources (uses)
Transfers out
(228,822)
-
-
Total other financing sources (uses)
(228,822)
-
-
_
Net change in fund balances
$ (1,910)
$ (1,982,873)
5,200,988
_$_7183861
Fund balances, beginning of year
1,982,874
Fund balances, end of year
$ 7,183,862
108
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, 2014
Other financing sources (uses)
Transfers out (1,275,377) (1,050,000) (1,115,174) (65,174)
Total other financing sources (uses) (1,275,377) (1,050,000) (1,115,174) (65,174)
Net change in fund balances $ - $ 225,377 470 $ (224,907)
Fund balances, beginning of year
Fund balances, end of year
109
$ 470
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Investment income
$ 377
$ 377
$ 470
$ 93
Fines and forfeitures
1,275,000
1,275,000
1,115,174
(159,826)
Total revenues
1,275,377
1,275,377
1,115,644
(159,733)
Other financing sources (uses)
Transfers out (1,275,377) (1,050,000) (1,115,174) (65,174)
Total other financing sources (uses) (1,275,377) (1,050,000) (1,115,174) (65,174)
Net change in fund balances $ - $ 225,377 470 $ (224,907)
Fund balances, beginning of year
Fund balances, end of year
109
$ 470
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, 2014
Variance From
Final Budget
Original Final Positive/
_ Budget Budget Actual (Negative)
Revenues
Intergovernmental $ 671,029 $ 1,187,180 $ 977,201 $ (209,979)
Total revenues 671,029 1,187,180 977,201 (209,979)
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
411,843 955,972 719,824 236,148 1
230,000
230,000
230,000
29,186
29,186
29,186 -
671,029
1,215,158
979,010 236,148
(27,978) (1,809) 26,169
$ $ (27,978) (1,809) $ 26,169
110
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, 2014
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
32,370
33,996
18,287 15,709
19,000
Variance From
49,660 -
51,370
83,656
67,947 15,709
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Intergovernmental
$ 206,367
$ 206,367
$ 255,577
$ 49,210
Investment income
458
458
853
395
Total revenues
206,825
206,825
256,430
49,605
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
32,370
33,996
18,287 15,709
19,000
49,660
49,660 -
51,370
83,656
67,947 15,709
155,455 123,169 188,483 65,314
(155,455) - -
(155,455) - - -
$ $ 123,169 188,483 $ 65,314
111
79,333
$ 267,816
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, 2014
Expenditures
Current:
General government
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
12,000
12,000
3,909
8,091
Variance From
3,478,095
2,904,828
573,267
511,000
Final Budget
878,163
Original
Final
4,618,431
Positive/
831,531
Budget
Budget
Actual
(Negative)
Revenues
Special assessments
$ 3,139,500
$ 3,139,500
$ 2,940,538
$ (198,962)
Investment income
97,255
97,255
76,924
(20,331)
Other revenue
-
199,063
299,065
100,002
Total revenues
3,236,755
3,435,818
3,316,527
(119,291)
Expenditures
Current:
General government
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
12,000
12,000
3,909
8,091
2,539,640
3,478,095
2,904,828
573,267
511,000
1,128,336
878,163
250,173
3,062,640
4,618,431
3,786,900
831,531
174,115 (1,182,613) (470,373) 712,240
32,660 23,420 23,420
(68,738) (63,888) (63,888)
(36,078) (40,468) (40,468) -
$ 138,037 $ (1,223,081) (510,841) $ 712 240
112
6,468,839
$ 5,957.998
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual
Surface Transportation Program Special Revenue Fund
For the Year Ended June 30, 2014
Revenues
' Intergovernmental
Total revenues
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 535,400 $ 595,902 $ 203,485 $ (392,417)
535,400 595,902 203,485 (392,417)
Expenditures
Capital outlay 535,400 2,129,221 78,773 2,050,448
Total expenditures 535,400 2,129,221 78,773 2,050,448
Excess (deficiency) of revenues
over(under)expenditures (1,533,319) 124,712 1,658,031
Net change in fund balances $ $ (1,533,319) 124,712 $ 1,658,031
Fund balances (deficit), beginning of year (124,712)
Fund balances, end of year $
113
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ $ 70,209 $ 19,485 $ (50,724)
Total revenues 70,209 19,485 (50,724)
Expenditures
Current:
Public safety
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
114
70,209 19,485 50,724
70,209 19,485 50,724
(846)
$ (846)
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ $ 354,291 $ 358,380 $ 4,089
Total revenues 354,291 358,380 4,089
Expenditures
Current:
Public safety
341,257
327,000
14,257
Total expenditures
341,257
327,000
14,257
Excess (deficiency) of revenues
over(under)expenditures
13,034
31,380
18,346
Net change in fund balances $
$ 13,034
31,380
$ 18,346
Fund balances (deficit), beginning of year
(13,034)
Fund balances, end of year
$
18,346
115
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ $ 498,698 $ 4,046 $ (494,652)
Total revenues 498,698 4,046 (494,652)
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
116
740
0,125) (37) 10,088
0,125) (37) $ 10,088
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, 2014
117
Original
Budget
Final
Budget
Actual
Variance From
Final Budget
Positive/
(Negative)
Revenues
Investment income
$ -
$ -
$ (237)
$ (237)
Developer fees
35,000
35,000
265,503
230,503
Total revenues
35,000
35,000
265,266
230,266
Other financing sources (uses)
Transfers out
(35,000)
(109,731)
(109,731)
-
Total other financing sources (uses)
(35,000)
(109,731)
(109,731)
Net change in fund balances
$ -
$ (74,731)
155,535
$ 230,266
Fund balances, beginning of year
1,766
Fund balances, end of year
$ 157,301
117
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Taxes $ 450,000 $ 450,000 $ 472,138 $ 22,138
Investment income 7,200 7,200 8,978 1,778
Total revenues 457,200 457,200 481,116 23,916
Expenditures
Current:
General government
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
118
770 13,739
873,671
$ 1,114,017
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, 2014
Expenditures
Variance From
Public works
Final Budget
1,650
Original
Final
3,919,448
Positive/
3,095,459 5,369,191
Budget
Budget
Actual
(Negative)
Revenues
over (under) expenditures
Intergovernmental
$ 6,424,681
$ 11,290,061
$ 5,716,298
$ (5,573,763)
Investment income
-
-
(3,458)
(3,458)
Total revenues
6,424,681
11,290,061
5,712,840
(5,577,221)
Expenditures
Current:
Public works
1,650
1,650
1,650 -
Capital outlay
3,919,448
8,464,650
3,095,459 5,369,191
Total expenditures
3,921,098
8,466,300
3,097,109 5,369,191
Excess (deficiency) of revenues
over (under) expenditures
2,503,583
2,823,761
2,615,731 (208,030)
Other financing sources (uses)
Transfers out (2,503,583) (2,895,808) (1,740,227) 1,155,581
Total other financing sources (uses) (2,503,583) (2,895,808) (1,740,227) 1,155,581
Net change in fund balances $ $ (72,047) 875,504 $ 947,551
Fund balances, beginning of year 295,542
Fund balances, end of year $ 1,171,046
119
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, 2014
Revenues
Intergovernmental
Total revenues
Expenditures
Current:
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Other financing sources (uses)
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
$ 3,724,056 $ 7,434,703 $ 2,789,477 $ (4,645,226)
3,724,056 7,434,703 2,789,477 (4,645,226)
- 10,305 127 10,178
3,724,056 7,439,976 2,643,548 4,796,428
3,724,056 7,450,281 2,643,675 4,806,606
(15,578) 145,802 161,380
Transfers in - 1,050,123 1,050,123 -
Total other financing sources (uses) 1,050,123 1,050,123 -
Net change in fund balances $ $ 1,034,545 1,195,925 $ 161,380 '
Fund balances, beginning of year (936,093)
Fund balances, end of year $ 259,832 '
120
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, 2014
Other financing sources (uses)
Transfers out (1,878,921)
Total other financing sources (uses) (1,878,921) - - -
Net change in fund balances $ - $ 2,154,166 2,152,404$ (1,762)
Fund balances, beginning of year
Fund balances, end of year
121
162,228
$ 2,314,632
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Intergovernmental
$ 1,878,921
$ 2,154,166
$ 2,153,225
$ (941)
Investment income
-
-
(821)
(821)
Total revenues
1,878,921
2,154,166
2,152,404
(1,762)
Other financing sources (uses)
Transfers out (1,878,921)
Total other financing sources (uses) (1,878,921) - - -
Net change in fund balances $ - $ 2,154,166 2,152,404$ (1,762)
Fund balances, beginning of year
Fund balances, end of year
121
162,228
$ 2,314,632
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, 2014
Expenditures
Current:
General government
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
408,264
402,950
312,056
90,894
Variance From
402,950
312,056
90,894
55,573
Final Budget
205,091
Original
Final
95,237
$
Positive/
109,854
Budget
Budget
Actual
(Negative)
Revenues
Charges for services
$ 462,000
$ 496,350
$ 514,906
$ 18,556
Investment income
1,837
1,837
2,241
404
Total revenues
463,837
498,187
517,147
18,960
Expenditures
Current:
General government
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
408,264
402,950
312,056
90,894
408,264
402,950
312,056
90,894
55,573
95,237
205,091
109,854
$ 55573 $
95,237
$
205,091 $
184,927
390,018
109,854
122
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, 2014
Expenditures
Current:
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
433,890 455,062 351,458 103,604
- 2,752,630 34,000 2,718,630
433,890 3,207,692 385,591 2,822,101
1,690,175 (1,083,627) 1,818,553 2,902,180
Other financing sources (uses)
Transfers out (808,647) (808,647) (808,628) 19
Total other financing sources (uses) (808,647) (768,165) (768,146) 19
Net change in fund balances $ 881,528 $ (1,851,792) 1,050,407 $ 2,902,199
' Fund balances, beginning of year 10,658,931
Fund balances, end of year $ 11,709,338
t
123
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Special assessments
$ 2,098,000
$ 2,098,000
$ 2,143,520
$ 45,520
Investment income
26,065
26,065
50,624
24,559
Other revenue
-
-
10,000
10,000
Total revenues
2,124,065
2,124,065
2,204,144
80,079
Expenditures
Current:
General government
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
433,890 455,062 351,458 103,604
- 2,752,630 34,000 2,718,630
433,890 3,207,692 385,591 2,822,101
1,690,175 (1,083,627) 1,818,553 2,902,180
Other financing sources (uses)
Transfers out (808,647) (808,647) (808,628) 19
Total other financing sources (uses) (808,647) (768,165) (768,146) 19
Net change in fund balances $ 881,528 $ (1,851,792) 1,050,407 $ 2,902,199
' Fund balances, beginning of year 10,658,931
Fund balances, end of year $ 11,709,338
t
123
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ 1,580,285 $ 1,120,667 $ 1,626,238 $ 505,571
Total revenues 1,580,285 1,120,667 1,626,238 505.571
Expenditures
Current:
General government
Public safety
Parks, recreation and community service
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances (deficit), beginning of year
Fund balances (deficit), end of year
350,000
493,702
451,547
42,155
-
102,104
59,897
42,207
9,730
8,000
8,000
-
45,000
203,553
141,965
61,588
1,129,555
529,852
732,059
(202,207)
1,534,285
1,337,211
1,393,468
(56,257)
46,000
(216.544)
232.770
449.314
124
232,770 $ 449,314
(420,881)
$ (188,111)
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Investment income $ 1,505 $ 1,505 $ 1,977 $ 472
Total revenues 1,505 1,505 1,977 472
Expenditures
Capital outlay 118,925 117,893 1,032
Total expenditures 118,925 117,893 1,032
Excess (deficiency) of revenues
over(under)expenditures 1,505 (117,420) (115,916) 1,504
Net change in fund balances $ 1,505 $ (117,420) (115,916) $ 1,504
Fund balances, beginning of year 163,465
Fund balances, end of year $ 47,549
Mi
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual
Housing Successor Agency Special Revenue Fund
For the Year Ended June 30, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Other revenue $ 5,056,509 $ 5,056,509 $ 5,056,509 $
Total revenues 5,056,509 5,056,509 5,056,509
Other financing sources (uses)
Transfers out (1,050,123) (1,050,123) (1,050,123)
Total other financing sources (uses) (1,050,123) (1,050,123) (1,050,123)
Net change in fund balances $ 4,006,386 $ 4,006,386 4,006,386 $ -
Fund balances, beginning of year 939,459
Fund balances, end of year $ 4,945,845
126
City of Santa Clarita
Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual
Tourism Marketing Bureau Special Revenue Fund
For the Year Ended June 30, 2014
Expenditures
Current:
General government
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
9,703 56,000 55,035 965
9,703 56,000 55,035 965
85,098 58,801 39,702 (19,099)
$ 85,098 $ 58,801 39,702 _L__L9,0991_
127
$ 39,702
Variance From
Final Budget
Original
Final
Positive/
Budget
Budget
Actual
(Negative)
Revenues
Charges for services
$ 12,987
$ 15,400
$ 13,029
$ (2,371)
Investment income
200
-
94
94
Other revenue
81,614
99,401
81,614
(17,787)
Total revenues
94,801
114,801
94,737
(20,064)
Expenditures
Current:
General government
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
9,703 56,000 55,035 965
9,703 56,000 55,035 965
85,098 58,801 39,702 (19,099)
$ 85,098 $ 58,801 39,702 _L__L9,0991_
127
$ 39,702
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Other revenue $ 85,000 $ 85,000 $ 86,634 $ 1,634
Total revenues 85,000 85,000 86,634 1,634
Expenditures
Capital outlay
1,025,909
4,477,932
2,501,659
1,976,273
Total expenditures
1,025,909
4,477,932
2,501,659
1,976,273
Excess (deficiency) of revenues
over (under) expenditures
(940,909)
(4,392,932)
(2,415,025)
1,977,907
Other Financing Sources (Uses)
Transfers in
-
1,575,064
1,575,064
-
Total other financing sources (uses)
-
1,575,064
1,575,064
-
Netchangeinfund balances
$ (940,909)
$ (2,817,868)
(839,961)
$1,977,907
Fund balances, beginning of year
4,249,725
Fund balances, end of year
$ 3,409,764
128
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, 2014
129
Original
Budget
Final
Budget
Actual
Variance From
Final Budget
Positive/
(Negative)
Other Financing Sources (Uses)
Transfers in
$ 798,033
$ 798,052
$ 798,033
$ (19)
Transfers out
_ _ (798,297)
(798,052)
(798,297)
(245)
Total other financing sources (uses)
(264)
(264)
(264)
Net change in fund balances
$ (264)
$
(264)
$ (264)
Fund balances, beginning of year
274
Fund balances, end of year
$ 10
129
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, 2014
Variance From
Final Budget
Original Final Positive/
Budget Budget Actual (Negative)
Revenues
Investment income $ 65 $ - $ 107 $ 107
Total revenues 65 107 107
Expenditures
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over(under)expenditures
1,560,000
1,560,000
1,560,000 -
1,589,256
1,589,192
1,589,277 (85)
3,149,256
3,149,192
3,149,277 (85)
(3,149,191) (3,149,192) (3,149,170) 22
Other Financing Sources (Uses)
Transfers in 3,149,436 3,149,192 3,149,436 244
Total other financing sources(uses) 3,149,436 3,149,192 3,149,436 244
Net change in fund balances $ 245 $ 266 $ 266
Fund balances, beginning of year
Fund balances (deficit), end of year
130
(80)
$ 186
City of Santa Clarita
' Internal Service Funds
As of and for the Year Ended June 30. 2014
' 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.
131
City of Santa Clarita
Combining Statement of Net Position
Internal Service Funds
June 30, 2014
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
189,409 421,805 611,214
- 189,409 421,805 611,214
3,738,224 2,432,175 4,851,488 11,021,887
114,200 131,201
Self-
Computer
Vehicle
1,349,876 -
- 1,349,876
Insurance
Replacement
Replacement
Totals
Assets
Current assets
Cash and investments
$ 3,729,970
$ 2,177,512
$ 4,416,251
$ 10,323,733
Receivables:
Accounts
-
-
3,411
3,411
Interest
8,254
4,941
10,021
23,216
Prepaid costs
-
60,313
-
60,313
Total current assets
3.738.224
2.242.766
442968.1
10 41 n R73
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
189,409 421,805 611,214
- 189,409 421,805 611,214
3,738,224 2,432,175 4,851,488 11,021,887
114,200 131,201
282 245,683
2,254 -
- 2,254
1,349,876 -
- 1,349,876
1,466, 330 131,201
282 1,597,813
807,887 807,887
807,887 807,887
- 189,409 421,805 611,214 '
1,464,007 2,111,565 4,429,401 8,004,973
1,464,007 $ 2,300,974 $ 4,851,206 $ 8,616,187 '
132
City of Santa Clarita
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2014
Self- Computer Vehicle
Insurance Replacement Replacement Totals
Operating revenues
Charge for services $ 2,471,221 $ 410,070 $ 224,400 $ 3,105,691
Total operating revenues 2,471,221 410,070 224,400 3,105,691
Operating expenses
Administration and personnel services
330,938
1,960
3,490
336,388
Services and supplies
2,176,168
193,309
-
2,369,477
Depreciation expense
-
58,649
108,487
167,136
Total operating expenses
2,507,106
253,918
111,977
2,873,001
Operating income (loss)
(35,885)
156,152
112,423
232,690
Nonoperating revenues (expenses)
Investment income
88,171
24,530
53,589
166,290
Gain on disposal of fixed assets
-
-
18,174
18,174
Total nonoperating
revenues(expenses)
88,171
24,530
71,763
184,464
Income (loss) before transfers
52,286
180,682
184,186
417,154
Transfers
Transfers in
92,430
-
-
92,430
Transfers out
(17,411)
(17,411)
Total transfers
75,019
-
-
75,019
Changes in net position
127,305
180,682
184,186
492,173
Net position
Net position, beginning of year 1,336,702 2,120,292 4,667,020 8,124,014
Net position, end of year $ 1,464,007 $ 2,300,974 $ 4,851,206 $ 8,616,187
133
City of Santa Clarita
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2014
Self- Computer Vehicle
Cash flows from non -capital
financing activities
Cash transfers out
Cash transfers in
Net cash provided by
non -capital financing activities
Cash flows from capital and related
financing activities
Acquisition and construction of capital assets
Net cash (used in)
capital and related financing activities
Cash flows from investing activities
Interest received
Net cash provided by
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 to net
cash provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
(Increase) in accounts receivable
Increase (decrease) in accounts payable
Increase in claims and judgments
(Decrease) in compensated absences
Total adjustments
Net cash provided by
operating activities
Non-cash investing, capital and financing activities
Disposal of capital assets
(17,411) - - (17,411)
92,430 - - 92,430
75,019 - - 75,019
- (100,894) (280,909) (381,803)
(100,894) (280,909) (381,803)
101,165 25,197 55,919 182,281
101,165 25,197 55,919 182,281
1,253,844 168,375 (8,413) 1,413,806
2,476,126 2,009,137 4,424,664 8,909,927
$ 3,729,970 $ 2,177,512 $ 4,416 251 $ 10 323 733
$ (35,885) $ 156,152 $ 112,423 $ 232,690
-
Insurance
Replacement
Replacement
Totals
Cash flows from operating activities
73,594
89,584 (922)
162,256
1,043,646
Cash received from customers and users
$ 2,471,221
$ 410,070
$ 220,989
$ 3,102,280
Cash paid to suppliers for goods and services
(2,299,434)
(165,998)
(4,412)
(2,469,844)
Cash paid to employees for services
905,873
-
-
905,873
Net cash provided by
operating activities
1,077,660
244,072
216,577
1,538,309
Cash flows from non -capital
financing activities
Cash transfers out
Cash transfers in
Net cash provided by
non -capital financing activities
Cash flows from capital and related
financing activities
Acquisition and construction of capital assets
Net cash (used in)
capital and related financing activities
Cash flows from investing activities
Interest received
Net cash provided by
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 to net
cash provided by operating activities
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
(Increase) in accounts receivable
Increase (decrease) in accounts payable
Increase in claims and judgments
(Decrease) in compensated absences
Total adjustments
Net cash provided by
operating activities
Non-cash investing, capital and financing activities
Disposal of capital assets
(17,411) - - (17,411)
92,430 - - 92,430
75,019 - - 75,019
- (100,894) (280,909) (381,803)
(100,894) (280,909) (381,803)
101,165 25,197 55,919 182,281
101,165 25,197 55,919 182,281
1,253,844 168,375 (8,413) 1,413,806
2,476,126 2,009,137 4,424,664 8,909,927
$ 3,729,970 $ 2,177,512 $ 4,416 251 $ 10 323 733
$ (35,885) $ 156,152 $ 112,423 $ 232,690
-
58,649 108,487
167,136
-
- (3,411)
(3,411)
73,594
89,584 (922)
162,256
1,043,646
- -
1,043,646
(3,695)
-
(3,695)
1,113,545
87,920 1D4,154
1,305,619
$ 1,077,660 $ 244,072 $ 216,577 $ 1 538 309
134
(18,174) $ (18,174)
City of Santa Clarita
' Fiduciary Funds
As of June 30, 2014
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, for which the City performs administrative functions.
Santa Clarita Public Television Authority — To account for monies held for the operations of the SCPTA,
for which the City performs administrative functions.
135
City of Santa Clarita
Combining Statement of Assets and Liabilities
Agency Funds
June 30, 2014
136
Community
Assessment
Assessment
Facilities
District
District
District
No. 92-2
No. 99-1
No. 2002-1
Assets
Cash and investments
$
113,314
$
85,416
$
768,335
Receivables:
Interest
257
194
1,740
Taxes
408
1,187
-
Due from other governments
-
-
-
Restricted assets:
Cash and investments with fiscal agents
58,697
59,712
1,643,419
Capital assets:
Land
-
-
-
Building, net of accumulated depreciation
-
-
-
Total assets
$
172,676
$
146,509
$
2,413,494
Liabilities
Due to external parties
$
172,676
$
146,509
$
2,413,494
Total liabilities
$
172,676
$
146,509
$
2,413,494
136
City of Santa Clarita
Combining Statement of Assets and Liabilities
Agency Funds
June 30, 2014
137
Santa Clarita
Watershed and
Santa Clarita
Recreation
Public
Conservancy
Television
Authority
Authority
Totals
Assets
Cash and investments
$ 33,119
$
8
$
1,000,192
Receivables:
Interest
-
-
2,191
Taxes
-
-
1,595
Due from other governments
715,000
-
715,000
Restricted assets:
Cash and investments with fiscal agents
-
-
1,761,828
Capital assets:
Land
9,937,976
-
9,937,976
Building, net of accumulated depreciation
90,300
-
90,300
Total assets
$ 10,776,395
$
8
$
13,509,082
Liabilities
Due to external parties
$ 10,776,395
$
8
$
13,509,082
Total liabilities
$ 10,776,395
$
8
$
13,509,082
137
City of Santa Clarita
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2014
Assessment District No. 92-2
Assets
Cash and investments
Receivables:
Taxes
Interest
Restricted assets:
Cash and investments with fiscal agents
Total assets
Liabilities
Accounts payable
Due to external parties
Total liabilities
Assessment District 99-1
Assets
Cash and investments
Receivables:
Taxes
Interest
Restricted assets:
Cash and investments with fiscal agents
Total assets
Liabilities
Accounts payable
Due to external parties
Total liabilities
Balance Balance
dv 1, 2013 Additions Deductions June 30. 2014
$ 97,826 $
184,767 $
169,279 $
113,314
1,685
408
1,685
408
273
257
273
257
58,697
-
-
58,697
$ 158,481 $
185,432 $
171,237 $
172,676
$ 15 $ 6,367 $ 6,382 $ -
158,466 179,065 164,855 172,676
$ 158,481 $ 185,432 $ 171,237 $ 172,676
$ 71,498 $
143,968 $
130,050 $
85,416
590
1,187
590
1,187
200
194
200
194
57,106
2,606
-
59,712
$ 129,394 $
147 955 $
130 840 $
146,509
$ 201 $ 3,491 $ 3,692 $ -
129,193 144,464 127,148 146,509
$ 129,394 $ 147,955 $ 130,840 $ 146,509
138
City of Santa Clarita
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2014
Liabilities
Accounts payable $ - $ 520 $ 520 $ -
Due to external parties 2,302,735 2,166,171 2,055,412 2,413,494
Total liabilities $ 2302,735 $ 2,166,691 $ 2,055,932 $ 2,413,494
Santa Clarita Watershed and Recreation
Conservancy Authority
Assets
Cash and investments $ 270,259 $ 102 $ 237,242 $ 33,119
Due from other governments 715,000 - - 715,000
Capital assets:
Land 9,738,207 199,769 - 9,937,976
Building, net of accumulated depreciation 94,062 - 3,762 90,300
Total assets $ 10 817,528 $ 199,871 $ 241,004 $ 10,776,395
Liabilities
Due to external parties $ 10,817,528 $ 199,871 $ 241,004 $ 10,776,395
Total liabilities $ 10 817,528 $ 199,871 $ 241,004 $ 10.776.395
139
Balance
Balance
July 1, 2013
Additions
Deductions
June 30, 2014
Community Facilities District No. 2002-1
Assets
Cash and investments
$ 647,353
$ 395,741
$ 274,759
$ 768,335
Receivables:
Accounts
2,000
-
2,000
-
Interest
1,803
1,740
1,803
1,740
Restricted assets:
Cash and investments with fiscal agents
1,651,579
1,769,210
1,777,370
1,643,419
Total assets
$ 2,302,735
$ 2,166,691
$ 2,055,932
$ 2,413,494
Liabilities
Accounts payable $ - $ 520 $ 520 $ -
Due to external parties 2,302,735 2,166,171 2,055,412 2,413,494
Total liabilities $ 2302,735 $ 2,166,691 $ 2,055,932 $ 2,413,494
Santa Clarita Watershed and Recreation
Conservancy Authority
Assets
Cash and investments $ 270,259 $ 102 $ 237,242 $ 33,119
Due from other governments 715,000 - - 715,000
Capital assets:
Land 9,738,207 199,769 - 9,937,976
Building, net of accumulated depreciation 94,062 - 3,762 90,300
Total assets $ 10 817,528 $ 199,871 $ 241,004 $ 10,776,395
Liabilities
Due to external parties $ 10,817,528 $ 199,871 $ 241,004 $ 10,776,395
Total liabilities $ 10 817,528 $ 199,871 $ 241,004 $ 10.776.395
139
City of Santa Clarita
Combining Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2014
Balance Balance
July 1, 2013 Additions Deductions June 30, 2014
Santa Clarita Public Television Authority
Assets
Cash and investments $ 4 $ 142,924 $ 142,920 $ 8
Total assets 4 $ 142,924 $ 142,920 $ 8
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
Building, net of accumulated depreciation
Total assets
Liabilities
Accounts payable
Due to external parties
Total liabilities
$ - $ 13,807 $ 13,807 $
4 129,117 129,113 8
$ 4 $ 142,924 $ 142,920 $ 8
$ 1,086,940 $ 867,502 $ 954,250 $ 1,000,192
2,000 - 2,000 -
2,275 1,595 2,275 1,595
2,276 2,191 2,276 2,191
715,000 - - 715,000
1,767,382 1,771,816 1,777, 370 1,761, 828
9,738,207 199,769 - 9,937,976
94,062 - 3,762 90,300
$ 13 408,142 $ 2,842 873 $ 2,741,933 $ 13,509,082
$ 216 $ 24,185 $ 24,401 $ -
13,407,926 2,818,688 2,717,532 13,509,082
$ 13,408,142 $ 2,842,873 $ 2,741,933 $ 13,509,082
140
' 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 performance by placing it in historical perspective.
142-151
Revenue Capacity
These tables contain information that may help in assessing the viability of the
City's most significant revenue sources, the property and sales tax.
152-167
Debt Capacity
These tables present information that may assist the reader in analyzing the
affordability of the City's current levels of outstanding debt and the City's ability
' to issue additional debt in the future.
168-174
Demographic and Economic Information
These tables offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
175-176
Operating Information
These tables contain service and infrastructure indicators that can inform one's
'
understanding of how the information in the City's financial statements relates to
the services the City provides and the activities it performs.
177-179
141
City of Santa Clarita
Net Position by Component '
Last Nine Fiscal Years Ended June 30, 2014 tzi
(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
13-14 12-13 11-12 10-11
$ 799,926,613 $ 738,271,282 $ 743,281,558 $ 717,613,095
14,292,447 3,275,312 3,452,815
71,643,713 54,229,493 46,915,965 30,201,655
71,643,713 68,521,940 50,191,277 33,654,470
82,854,775 65,706,424 79,141,211 67,397,688
$ 954,425,101 $ 872,499,646 $ 872,614,046 $ 818,665,253
$ 83,296,545 $ 76,561,407 $ 73,778,640 $ 75,416,868
3,354,211 3,835,316 3,099,419 503,446
$ 86,650,756 $ 80,396,723 $ 76,878,059 $ 75,920,314
$ 883,223,158
$ 814,832,689
$ 817,060,198
$ 793,029,963
71,643,713
68,521,940
50,191,277
33,654,470
86,208,986
69,541,740
82,240,630
67,901,134
$1,041,075,857 $ 952,896,369 $ 949,492,105 $ 894,585,567
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 (a) an external
party, such as the State of California or the federal government, places a restriction on how the revenues may be
used, or (b) enabling legislation is enacted by the City.
(2) The City implemented GASB 44 for the fiscal year ended June 30, 2006, therefore, only nine years of data is
(3) The City implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003. The fiscal year 2005-
06
00506 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
142
FISCAL YEAR
09-10 08-09 07-08 06-07 As Restated
$ 657,644,168 $ 629,621,720 $ 672,306,820 $ 661,210,117 $ 614,300,517
4,769,573 4,769,573 45,993,804
18,134,924 32,030,928
- - 632,680
174,028
85,895,468 92,644,739 61,018,399
34,441,539 30,547,345
90,665,041 97,414,312 107,644,883
52,576,463 62,752,301
63,218,255 98,512,704 66,249,901 87,737,817 71,001,423
$ 811,527,464 $ 825,548,736 $ 846,201,604 $ 801,524,397 $ 748,054,241
$ 67,911,725 $ 66,478,547 $ 63,526,242 $ 62,246,621 $ 63,741,429
(176,196) 3,603,396 2,957,611 1,553,088 (406,224)
$ 67,735,529 $ 70,081,943 $ 66,483,853 $ 63,799,709 $ 63,335,205
$ 725,555,893 $ 696,100,267 $ 735,833,062 $ 723,456,738 $ 678,041,946
90,665,041 97,414,312 107,644,883 52,576,463 62,752,301
63,042,059 102,116,100 69,207,512 89,290,905 70,595,199
$ 879,262,993 $ 895,630,679 $ 912,685,457 $ 865,324,106 $ 811,389,446
143
City of Santa Clarita
Changes in Net Position '
Last Nine Fiscal Years Ended June 30, 2014 zJ
(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 revern
FISCAL YEAR
13-14 12-13 11-12 10-11
$ 41,807,284
$ 35,921,943
22,187,434
19,940,098
26,183,862
28,651,261
22,550,301
21,809,820
6,193,101
7,214,293
17,561,539
15,163,864
753
$ 33,664,470
$ 47,048,462
27,391,075
21,280,904
30,623,718
25,799,166
19,282, 538
11,281,552
5,896,640
11, 547,650
16,844,238
16,392,901
3.391.058
4.650.566
127
$165,175,514 $156,347,606 $162,024,372 $162,128,244
$ 31,970,148
$ 24,323,027
$ 13,719,117
$ 398,181
1,847,403
2,284,334
2,079,109
2,305,608
12,463,046
9,943,014
7,209,724
4,929,602
4,390,686
4,371,888
4,156,386
4,220,977
1,961,243
1,611,184
5,152,484
12,059,509
19,421,199
9,061,950
16,032,433
14,090,686
22,530,841
33,585,797
28,616,388
31,325,725
94,584,566
85,181,194
76,965,641
69.330.288
Business -Type Activities
Charges for services:
Transit
7,587,497
6,863,086
6,616,778
6,573,879
Operating grants and contributions
8,984,127
8,579,209
7,385,264
6,913,534
Capital grants and contributions
10,804,747
8,513,238
5,041,992
13,043,418
Total business -type activities program reveni
27,376,371
23,955,533
19,044,034
26,530,831
Total primary government revenues $121,960,937 $109,136,727 $ 96,009,675 $ 95,861,119
Note:
(1) The City implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003.
(2) The City implemented GASB 44 for the fiscal year ended June 30, 2006. therefore, only nine years of data is
presented.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
144
FISCAL YEAR
09-10 08-09 07-08 06-07 05-06
$ 32,116,335 $ 30,094,380 $ 27,488,731 $ 26,029,070 $ 24,225,414
17,912,704
17,489, 870
16,482, 917
14,398,408
13, 821,626
26,758,527
48,514,645
30,549,888
19,273,980
6,417,841
27,835,763
32,747,618
21,817,251
20,573,077
20,988,533
13,831,341
9,761,681
9,257,881
8,985,449
16,939, 976
15,545,626
14,405,047
13,128,617
12,920,310
1,268,939
5,476,918
5,786,174
3,127,998
2,087,949
1,669,701
139.477.214
158.799.415
121.853.283
104.268.243
85.332.030
23,348,708
22,299,379
21,506,317
18,315,106
16,508,457
23,348,708
22,299,379
21,506,317
18,315,106
16,508,457
$162,825,922
$181,098,794
$143,359,600
$122,583,349
$101,840,487
$ 396,651
$ 621,624
$ 2,737,355
$ 302,075
$ 186,171
I 2,194,038
1,898,022
2,291,100
2,131,060
2,032,652
3,162,052
260,524
355,817
3,575,546
2,512,093
3,956,933
3,849,699
3,875,539
3,895,422
3,794,662
15,937,913
35,138,334
26,341,684
20,182,722
19,068,982
16,224,269
9,931,109
22,600,793
26,641,145
23,465,852
15,249,634
38,785,576
39,003,536
24,770,306
60,971,404
57,121,490
90,484,888
97,205,824
81,498,276
112,031,816
'
' 3,181,614
3,299,263
3,216,239
5,827,778
4,950,584
10,260, 579
13,653,177
11, 876,720
12,616,641
3,351,941
-
617,421
750,200
-
13,442,193
16,952,440
15,710,380
19,194,619
8,302,525
'
$ 70,563,683
$107,437,328
$112,916,204
$100,692,895
$120,334,341
(Continued)
145
City of Santa Clarita
Changes in Net Position"'
Last Nine Fiscal Years Ended June 30, 2014
(accrual basis of accounting)
Net Revenues (expenses):
Governmental activities
Business -type activities
Total net revenues (expenses)
General Revenue and Other Changes in Net Position
Governmental activities
Taxes:
Sales taxes
Property taxes
Franchise taxes
Real property transfer taxes
Transient occupancy taxes
Unrestricted revenue in lieu of motor vehicle taxes
Unrestricted revenue in lieu of sales taxes
Grants and contributions not restricted
to specific programs
Unrestricted investment earnings
Miscellaneous revenue
Gain on sale of capital asset
Transfers
Total governmental activities
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 Clanta
Change in Net Position
Governmental activities
Business -type activities
Total primary government
FISCAL YEAR
13-14 12-13 11-12 10-11
$ (43,771,787) $ (45,512,659) $ (60,128,096) $ (68,670,913)
557,210 (1,698,220) (5,886,601) 2,403,788
$(43,214,577) $(47,210,879) $(66,014,697) $(66.267 125)
33,480,522 $ 32,057,358 $ 28,828,139 $ 27,701,757
35,652,080
32,341,369
34,818,426
24,996,219
7,796,070
7,141,953
6,920,244
6,697,241
947,470
706,180
590,474
3,082,456
2,781,527
2,556,774
2,380,547
2,106,521
86,531
91,062
-
-
-
-
-
3,316,058
-
-
87,883
812,475
2,090,322
(82,870)
1,509,201
3,756,112
781,986
310,676
5,372,890
9,148,163
18,174
-
-
-
(5,692,032)
(5,187,224)
(6,844,199)
(5808300)
77,942,650
69,935,278
73,663,605
75,808,702
4,791 29,660 147 (27,303)
5,692,032 5,187,224 6,844,199 5,808,300
5,696,823 5,216,884 6,844,346 5,780,997
$ 83,639,473 75,152,162 $ 80,507,951 $ 81,589,699
$ - $ - $ 40,413,284 $ -
$ 34,170,863
6,254,033
$ 24,422,619
3,518,664
$ 53,948,793
957,745
$ 7,137,789
8,184,785
$ 40,424,896
$ 27,941,283
$ 54,906,538
$ 15,322,574
Note:
(1) The City implemented the GASB 34 reporting module for the fiscal year ended June 30, 2003.
(2) The City implemented GASB 44 for the fiscal year ended June 30, 2006, therefore, only nine years of data is
Source: City of Santa Clarita, Administrative Services Department - Finance Division
146
FISCAL YEAR
' 09-10 08-09 07-08 06-07 05-06
$ (82,355,724) $ (68,314,527) $ (24,647,459) $ (22,769,967) $ 26,699,786
(9,906,515) (5,346,939) (5,795,937) 879,54513 (8,205,932)
$ (92,262,239) $ (73,661,466) $ (30,443,396) $ (21,890,4) $ 18,493,854
$ 24,511,238 $ 27,751,506 $ 29,076,388 $ 23,790,825 $ 22,204,192
25,126,278
26,820,068
24,482,930
27,891,202
23,106,806
6,407,923
6,704,074
6,028,903
6,248,912
5,560,153
'
4,564,687
4,816,638
836,824
1,073,774
1,544,534
2,050,857
2,260,708
2,433,651
1,804,923
1,824,394
-
-
-
603,990
3,221,498
3,083,353
8,490,865
8,156,017
6,965,521
896,708
1,015,413
1,252,281
1,862,901
223,241
4,871,133
6,020,940
4,566,884
4,970,193
1,891,292
4,161,677
3,193,421
(7477547)
(8,006,128)
(8,431,120)
441,376
(12,054,795)
68,334,452
73,659,993
68,737,606
76,240,123
51,869,328
82,554
-
48,961
26,367
1,050
-
938,901
-
-
883,615
7,477,547
8,006,128
8,431,120
(441,376)
12,054,795
7 aan 4m
a oec non
a nan nal
/d1F nnQ%
19 ozo can
$ -
$ -
$ -
$ -
$ -
$(14,021,272)
$ 5,345,466
$ 44,090,147
$ 53,470,156
$ 78,569,114
147
1
City of Santa Clarita
Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2014
(modified accrual basis of accounting)
FISCAL YEAR
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
Total all other governmental funds
13-14 12-13 11-12 10-11 09-10
$ 19,546,015
58,211,508
11,519,143 11,910,059 18,902,350 23,845,861
- - 66,257 12,356,339
51,718,096 47,106,536 309,078 572,781 -
45,654,640 35,320,706 50,664,338 46,915,238 -
$108,891,879 $ 94,337,301 $ 69,942,023 $ 83,690,219 $ 77,757,523
$ - $ - $ - $ - $ 51,195,454
-
-
-
-
2,109,198
-
-
-
-
(24,048,962)
-
-
-
-
33,725,531
606,996
670,612
28,885,983
28,813,152
-
84,268,720
68,957,999
46,915,965
57,205,072
-
612,829
716,826
-
-
-
3,412,127
4,466,367
3,275,312
3,637,410
-
(9,300,647)
(10,665,597)
(56,718,519)
(72,692,440)
-
$ 79,600,025
$ 64,146,207
$ 22,358,741
$ 16,963,194
$ 62,981,221
FUND BALANCES
Fiscal Year Ended June 30. 2014
■ All Other
Governmen 0 General Fund
Funds 57.77%
42.23%
Note: (1) Balance as restated; see financial statements for the applicable year.
Source: City of Santa Clarita, Administrative Services Department - Finance Division
148
FISCAL YEAR
08-09 07-08 06-07 05-06111 04-05
$ 32,617,139 $ 34,920,547 $ 34,699,034 $ 20,786,040 $ 15,638,513
41,674,470 31,153,879 28,500,824 18,232,779 30,780,939
$ 74291,609 $ 66,074,426 $ 63,199,858 $ 39,018,819 $ 46,419,452
$ 70,667,494
$ 51,972,970
$ 48,303,588
$ 80,399,389
$ 30,388,825
(7,048,095)
28,377,796
3,827,570
(7,159,062)
2,843,589
(17,004,471)
(15,873,835)
(10,461,382)
(4,743,697)
(4,402,225)
34,502,270
38,050,255
4,592,332
(249,111)
(698,632)
$ 81,117,198 $102,527,186 $ 46,262,108 $ 68,247,519 $ 28,131,557
FUND BALANCES
ALL OTHER GOVERNMENTAL FUNDS
Last Ten Fiscal Years
90
60
70
60
I 50
0
40
i
c 30
20
10
0
04-05 05-06 06-07 07-08 08-08 09.10 10-11 11-12 12.13 13.14
Fiscal Year
iEPI
City of Santa Clarita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years Ended June 30, 2014
(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 charges
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 others
Proceeds from capital lease
Transfers in
Transfers out
Issuance of district credits
Total Other Financing Sources (Uses)
FISCAL YEAR
13-14 12-13 11-12 10-11
$ 80,285,660 $ 73,972,006 $ 73,625,713 $ 72,474,882
5,366,972
4,246,957
4,097,709
3,675,424
2,600,997
15,828,388
7,181,986
282,776
1,911,491
1,702,006
2,739,794
3,798,498
34,355,734
27,452,216
28,375,142
19,780,700
1,661,157
2,114,166
1,674,085
1,891,500
42,156,582
36,311,324
28,145,012
23,608,272
5,943,608
332,146
6,425,792
7,685,141
174,282,201 161,959,209 152,265,233 133,197,193
36,294,205
35,433,288
50,816,449
42,213,597
22,137,338
19,894,859
25,412,420
21,230,594
24,385,865
27,968,407
20,753,607
34,210,327
20,498,108
19,824,550
19,523,584
21,853,319
6,185,263
7,252,424
5,923,872
11,575,365
36,580,589
23,837,533
27,403,439
21,311,885
1,837,174
1,750,538
2,338,787
2,246,218
1,885,546
2,039,144
3,743,134
4,796,695
14,368,419
149,804,088
152,369,162
155,915,292
159,438,000
24,478,113
9,590,047
(3,650,059)
(26,240,807)
-
-
252,068 -
9,757,447
9,069,495
16,538,674 50,869,852
(15,524,498)
(14,256,719)
(29,810,448) (64,714,376)
11, 297, 334
12, 270, 335
30,008,396
5,530,283
7,083,111
(13,019,706) (13,844,524)
Extraordinary Item:
Dissolution of Santa Clarita Redevelopment Agency
8,317,116
Net change in fund balances
30,008,396
16,673,158
(8,352,649)
(40,085,331)
Fund balances - Beginning of Year, as restated
158,483,508
141,810,350
100,653,413
140,738,744
Fund balances - End of Year
$ 188,491,904
$ 158,483,508 $
92,300,764
$ 100,653,413
Debt service as percentage of nonrapital expenditures
3.01%
2.95%
4.40%
5.96%
Source: City of Santa Clarita, Administrative Services Department - Finance Division
150
FISCAL YEAR
07-08 06-07 05-06
$ 80,714,829 $ 87,659,599 $ 88,088,786 $ 70,576,755 $ 66,164,485 $ 53,763,779
4,093,250
3,697,218
5,256,748
4,203,933
6,907,826
5,127,705
3,053,363
15,763,070
22,290,808
6,747,767
28,028,933
11,963,054
5,485,925
10,749,728
8,287,441
7,926,763
2,881,133
3,148,731
33,881,145
28,882,884
24,247,611
37,300,213
38,526,364
33,089,887
1,936,318
1,759,371
2,121, 570
1,918,954
1,904,273
1,803,686
10,812,521
8,375,771
9,931,041
13, 463, 673
13, 081, 649
13, 339, 462
7,234,923
5,077,400
3,368,879
4,356,961
12,651,674
2,408,463
147,212,274 161,965,041 163,592,884 146,495,019 170,146,337 124,644,767
27,951,510
27,250,056
25,965,196
23,411,750
24,668,150
11,217,783
17,862,129
17,439,295
16,342,979
14,347,833
13,658,723
12,429,192
20,594,575
42,937,168
25,977,763
19,511,097
6,802,081
8,901,359
20,048,430
20,126,412
20,156,343
18,943,146
17,376,609
15,964,949
10,849,942
7,095,386
7,583,236
9,051,652
17,164,505
22,531,795
46,183,268
41,826,511
44,906,802
57,926,955
49,435,744
35,096,683
2,611,372
2,072,341
1,927,198
2,374,870
1,367,359
2,060,319
5,411,152
5,279,549
4,632,979
2,298,974
2,878,536
1,570,581
151,512,378
164,026,718
147,492,496
147,866,277
133,351,707
109,772,661
(4,300,104)
(2,061,677)
16,100,388
(1,371,258)
36,794,630
14,872,106
- - -
13,894,752
- -
- - 54,235,000
-
17,700,000 -
- - (226,682)
-
(17,225,304) -
18,953,115 12,150,426 43,112,541
27,468,089
7,865,612 8,157,999
(28,930,662) (23,281,554) (54,668,661)
(29,881,193)
(19,409,716) (20,282,188)
(9,977,547) (11,131,128) 42,452,198
11,481,648
(11,069,408) (12,124,189)
(14,277,651) (13,192,805) 58,552,586 10,110,390 25,725,222 2,747,917
155,016,395 168,601,612 110,049,026 99,351,576 74,551,009 71,803,092
$ 140,738,744 $ 155,408,807 $ 168,601,612 $ 109,461,966 $ 100,276,231 $ 74,551,009
6.84% 5.54% 5.16% 4.27% 4.85% 4.57%
151
City of Santa Clarity
Assessed Values nl and Actual Values of Taxable Property
Last Ten Fiscal Years
ASSESSED VALUATION by CATEGORIES
(Total Secured and Unsecured)
Fiscal Year Ended June 30, 2014
PERSONAL PROPERTY
2.83%
■ 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: Hd L Conan 8 Cone, County of Los Angeles, Audit" -Controller Once, Combined Tax Rails 2013-14
152
STATE ASSESSED
LOCALLY ASSESSED
SECURED (UTILITY)
SECURED
Fiscal
IMPROVE-
PERSONAL
IMPROVE-
PERSONAL
OTHER
Year
LAND
MENTS
PROPERTY
TOTAL
LAND
MENTS
PROPERTY
EXEMPTIONS
TOTAL
2004-05
$ 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
2005-06
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
2006-07
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
2007-08
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
2008-09
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
2009-10
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
2010-11
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
2011-12
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
2012-13
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
2013-14
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, 2014
PERSONAL PROPERTY
2.83%
■ 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: Hd L Conan 8 Cone, County of Los Angeles, Audit" -Controller Once, Combined Tax Rails 2013-14
152
30,000
25,000
]0,000
15,000
10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
1 .+ T.. Piacal V.m
04-05 05-06 9"7 0748 08-09 0910 10-11 11-12 12-13 13-14
Fiscal Year
153
LOCALLY ASSESSED
TOTALS
HOME -
UNSECURED
BEFORE
TAXABLE
%
TOTAL
OWNER
IMPROVE-
PERSONAL
OTHER
OTHER
ASSESSED
INCR.
DIRECT
PROPERTY
MENTS
PROPERTY
EXEMPTIONS
TOTAL
EXEMPTIONS
VALUE
(DECK.)
RATE(2)
TAXRELIEF
$254,085,173
$411,805,661
$(1,135,000)
$664,755,834
$13,795,632,501
$13,608,868,696
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
30,000
25,000
]0,000
15,000
10,000
5,000
TOTAL ASSESSED VALUATION
(Taxable Values)
1 .+ T.. Piacal V.m
04-05 05-06 9"7 0748 08-09 0910 10-11 11-12 12-13 13-14
Fiscal Year
153
City of Santa Clarita
Redevetopment Agency
Assessed Values (3) and Actual Values of Taxable Property
Last Ten Fiscal Years
(1) The Redevelopment Agency of the City 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.
Source: County of Los Angeles, Auditor-Controller/Tax Division
154
STATE ASSESSED
SECURED (UTILITY)
LOCALLY ASSESSED
SECURED
,
FISCAL
IMPROVE -PERSONAL
IMPROVE-
PERSONAL
OTHER
YEAR
LAND
MENTS PROPERTY
TOTAL
LAND
MENTS
PROPERTY EXEMPTIONS
TOTAL
2004.06
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
2006-10
-
- -
-
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
NIA
NIA NIA
N/A
NIA
N/A
NIA
N/A
N/A
2013-14
N/A
NIA N/A
NIA
NIA
N/A
N/A
NIA
N/A
(1) The Redevelopment Agency of the City 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.
Source: County of Los Angeles, Auditor-Controller/Tax Division
154
'
IMPROVE-
MENTS
LOCALLY ASSESSED
UNSECURED
PERSONAL OTHER
PROPERTY EXEMPTIONS
TOTAL
TOTALS
BEFORE
BASE YEAR
BASE YEAR
TOTALS
TAXABLE
ASSESSED
VALUE
VALUE
GROWTH
HOME -
OWNER
PROPERTY
TAX RELIEF
6,326,173
22,151,970
(33,000)
28,445,143
373,564,307
(266,351,517)
107,212,790
27,718,426
2,161,147
5,901,959
23,034,914
(91,000)
28,845,873
476,378,928
(266,351,517)
210,027,411
102,814,621
2,053,943
26,593,269
25,569,962
(16,300)
52,146,931
530,808,304
(266,351,517)
264,456,787
54,429,376
1,971,567
'
28,204,577
48,299,529
(217,300)
76,286,806
615,064,595
(266,351,517)
348,713,078
84,256,291
2,034,432
39,771,667
48,437,084
(77,000)
88,131,751
651,935,348
(266,351,517)
385,583,831
36,870,753
2,002,848
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
WA
N/A
N/A
N/A
N/A
N/A
WA
N/A
N/A
N/A
N/A
N/A
N/A
155
City of Santa Clarita
Assessed Values—Taxable Property
Last Ten Fiscal Years
TOTALS:
$ 24,269,472,731 $ 20,985,441,963 $ 21,168,938,632 $ 21,113,942,935 $ 21,262,122,246
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
04-05 05-06 06-07 07.08 08-09 09-10 10-11 11-12 12-13 13-14
Fiscal Year
1111411
■Residential
8Commercial
alnd.strial
NVacant Land
OAII Others
FISCAL YEAR
CATEGORY
13-14
12.13
11-12
10-11
09-10
Residential
$ 18,138,258,224
$ 14,971,655,728
$ 15,212,586,674
$ 15,239,936,469
$ 15,093,632,637
Commercial
2,847,760,176
2,794,405,083
2,748,247,727
2,820,296,027
2,729,669,423
Industrial
1,561,091, 316
1,413,623,056
1,455,126, 754
1,463,696,151
1,451,053,867
Irrigated
2,827,311
2,796,388
3,016,072
3,004,749
3,630,743
Dry farm
-
-
_
_
_
Recreational
100,138,918
104,981,278
106,506,146
121,791,852
121,511,353
Institutional
136,824,169
132,119,758
125,982,002
127,363,481
125,868,861
Government
215,066
210,850
206,717
205,173
206,850
Miscellaneous
1,017,342
864,299
847,359
841,034
843,038
Vacant land
509,125,263
565,117,297
533,608,937
308,820,538
636,182,476
SBE Nonunitary
3,696,751
3,696,751
3,696,751
4,015,175
4,015,175
Possessory Int.
113,541,478
125,301,717
131,534,263
136,599,828
150,671,347
Unsecured
854,976,697
870,669,758
847,579,230
887,372,458
944,836,476
Unknown
20
-
-
-
-
TOTALS:
$ 24,269,472,731 $ 20,985,441,963 $ 21,168,938,632 $ 21,113,942,935 $ 21,262,122,246
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
ASSESSED VALUE - TAXABLE PROPERTY
Last Ten Fiscal Years
04-05 05-06 06-07 07.08 08-09 09-10 10-11 11-12 12-13 13-14
Fiscal Year
1111411
■Residential
8Commercial
alnd.strial
NVacant Land
OAII Others
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.
1
157
FISCAL YEAR
'
08-09
07-08
06-07
05-06
04-05
' $ 16,165,919,271
$ 13,962,275,972
$ 12,569,640,999
$ 11,097,987,787
$ 11,097,987,787
2, 081, 576, 763
1, 836, 340, 797
1, 588, 835, 810
1, 258, 389, 787
1, 258, 389, 787
1,293,080,539
1,148,469,489
980,395,598
833,455,573
833,455,573
3,489,768
29,374,674
28,272,540
4,351,050
4,351,050
'
49,088,244
48,512,253
45,145,241
45,145,241
114,868,032
90,435,287
94,916,719
84,727,948
84,727,948
130,907,129
94,705,673
91,312,643
80,606,769
80,606,769
197,676
194,922
190,000
-
-
'
810,312
795,449
779,859
764,577
764,577
664,792,342
656,660,955
554,551,820
440,215,418
440,215,418
8,243,171
10,666,005
13,172,185
16,768,755
16,768,755
239,115,623
222,654,730
205,526,182
201,323,600
201,323,600
790,596,511
730,697,804
659,990,996
641,526,760
641,526,760
-
83,525,492
103,303,882
36,994,610
36,994,610
' $ 21,493,597,137
$ 18,915,885,493
$ 16,939,401,486
$ 14,742,257.875
$ 14,742,257,875
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.
1
157
City of Santa Clarita
Assessed Values—Use Category Summary
Fiscal Year 2013-14
CATEGORY
PARCELS
ASSESSED
VALUE
PERCENT
EXEMPTIONS
NET
TAXABLE
VALUE
PERCENT
Residential
54,973
$18,197,034,956
73.68%
$ 58,776,732
$18,138,258,224
74.737%
Commercial
909
2,971,838,325
12.03%
124,078,149
2,847,760,176
11.734%
Industrial
714
1,563,845,768
6.33%
2,754,452
1,561,091,316
6.432%
Irrigated
6
2,827,311
0.01%
-
2,827,311
0.012%
Recreational
34
103,071,405
0.42%
2,932,487
100,138,918
0.413%
Institutional
92
359,482,468
1.46%
222,658,299
136,824,169
0.564%
Government
5
216,306
0.001%
1,240
215,066
0.001%
Miscellaneous
14
1,017,342
0.004%
-
1,017,342
0.004%
Vacant land
3,867
509,876,394
2.06%
751,131
509,125,263
2.098%
SBE Nonunitary
(11)
3,696,751
0.01%
-
3,696,751
0.015%
Possessory Int.
(2,191)
114,257,034
0.46%
715,556
113,541,478
0.468%
Unsecured
(6,218)
870,884,413
3.53%
15,907,716
854,976,697
3.523%
Unknown
23
20
0.00%
-
20
0.000%
TOTALS:
52,217
$24,698,048,493
100.00%
$ 428,575,762
$24,269,472,731
100.00%
ASSESSED VALUE by USE
CATEGORY
Fiscal Year 2013-14
NET TAXABLE VALUE by USE CATEGORY
Fiscal Year 2013-14
Industrial
6.43%
Commercial
11.73%
■ All Others
7.10%
Residential
74.74%
Source: HdL Coren & Cone, Los Angeles County Assessor 2013/14 Combined Tax Rolls.
158
itii.]
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
Last Ten Fiscal Years
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2013-14
1.200000
1.000000 GENERAL
0.800000
0.600000
0.400000
SCHOOL
0.200000 CASTAIC LAKE DISTRICTS
WATER AGENCY SANITATION
DISTRICTS
0.000000
LA COUNTY FLOOD CONTROL
Source: HdL Coren & Cone, Los Angeles County Assessor 2013-14 Tax Rate Table
160
CASTAIC
LOS
LAKE
COUNTY
COUNTY
Fiscal
ANGELES
WATER
SCHOOL
SANITATION
FLOOD
Year
GENERAL
COUNTY
AGENCY
DISTRICTS
DISTRICTS
CONTROL
TOTAL
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
-
0.000049
1.114593
2006-07
1.000000
0.000660
0.040000
0.060360
-
0.000050
1.101070
2007-08
1.000000
-
0.040000
0.074050
-
-
1.114050
2008-09
1.000000
-
0.040000
0.077110
-
-
1.117110
2009-10
1.000000
-
0.060750
0.089815
-
-
1.150565
2010-11
1.000000
-
0.070600
0.086830
-
-
1.157430
2011.12
1.000000
-
0.070600
0.091457
-
-
1.162057
2012-13
1.000000
-
0.070600
0.112835
-
-
1.183435
2013.14
1.000000
-
0.070600
0.120330
-
-
1.190930
DIRECT and OVERLAPPING PROPERTY TAX RATES
Fiscal Year 2013-14
1.200000
1.000000 GENERAL
0.800000
0.600000
0.400000
SCHOOL
0.200000 CASTAIC LAKE DISTRICTS
WATER AGENCY SANITATION
DISTRICTS
0.000000
LA COUNTY FLOOD CONTROL
Source: HdL Coren & Cone, Los Angeles County Assessor 2013-14 Tax Rate Table
160
City of Santa Clarita
Direct and Overlapping Property Tax Rates
(rate per $100 of assessed value)
One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies
City General Fund Direct Rates
RDA Incremental Rate
Total Direct Rate
City Share
Prop. 13
0.05780
Of 1% Total City
plus applicable
Consolidated Fire Protection District of LA Co. (007.30)
Roll Year per Prop. 13 Debt Rates Rates
voter -approved debt
0.00801
2013-14 0.122750 0.000000 0.122750
0.00000%
0.07183%
Agency
2013.14
City of Santa Clarita Tax District 1 (249.01)
0.05730
Castaic Lake Water Agency (302.01)
0.05780
Children's Institutional Tuition Fund (400.21)
0.00283
Consolidated Fire Protection District of LA Co. (007.30)
0.16340
County School Service Fund Newhall (581.06)
0.00801
County School Service Hart William S. Hart (757.06)
0.00034
County School Services (400.15)
0.00143
Development Center Handicapped Minor Newhall (581.07)
0.00088
Educational Augmentation Fund Impound (400.01)
0.13380
Educational Revenue Augmentation Fund (ERAF) (400.00)
0.08260
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 Clanta 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
'
Newhall Elementary School District Debt Services 1999 Ser. B (581.53)
0.01991
Newhall Elementary School District Debt Services 1999 Ser. A (581.52)
0.01990
Santa Clarita Community College Debt Services 2001 Ser. 2005 (814.54)
0.00766
Santa Clanta Community College Debt Services 2006 Ser. 2007 (814.55)
0.00714
Santa Cladta Community College Debt Services 2005 Refunding Bonds (81
0.00517
Santa Clanta Community College Debt Services 2001 Ser. 2003 (814.52)
0.00242
Santa Clarita Community College Debt Services 2006 Ser. 2012
0.00537
William S. Hart Un.Hsd Debt Services (757.51)
0.01265
William S. Hart Un.Hsd Debt Services 2008 Ser. B
0.01010
William S. Hart Un.Hsd Debt Services 2008 Ser. C
0.01059
William S. Hart Unified Debt Services 2001 Ser. B (757.52)
0.01420
William S. Hart Unified Debt Services 2008 Ser. A (757.53)
0.00523
'
Total Tax Rate
0.19093
' Source. HdL Goren & Cone, Los Angeles County Assessor 2013/14 Tax Rate Table
161
Notes: General fund tax rates are
representative and based upon the direct
and overlapping rates for the largest
General Fund tax rates area (TRA) by net
taxable value. Total Direct Rate is the
weighted average of all individual direct
rates applied by the government preparing
the statistical section information.
The percentages presented in the columns
above do not sum across rows. In 1978
California voters passed Proposition 13,
which set the property tax at a 1.00% fixed
amount. This 1.00% is shared by all the
taxing agencies for which the subject
property resides within. In addition to 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 Nine Fiscal Years Ago
Valencia Town Center
Saugus Colony Limited
VTC Business Center LLC
Park Sierra Properties
EQR Valencia LLC
Packard Humanities Institute
EQR The Oaks LLC
WalmaNSam's
RREEF America Reit II Corporatioi
Time Warner Cable
Total
All Others
Total Assessed Valuation
17 It
FISCAL YEAR 2013-14
1.48 %
FISCAL YEAR 2004-05
140,548,344
058
PERCENT of
138,852,154
PERCENT of
Number
TOTAL
TOTAL CITY
Number
TOTAL TOTAL CITY
of
ASSESSED
ASSESSED
of
ASSESSED ASSESSED
OWNER/TAXPAYER Pamela
VALUE
VALUE
OWNERfTAXPAYER Parcels
VALUE VALUE
Valencia Town Center
Saugus Colony Limited
VTC Business Center LLC
Park Sierra Properties
EQR Valencia LLC
Packard Humanities Institute
EQR The Oaks LLC
WalmaNSam's
RREEF America Reit II Corporatioi
Time Warner Cable
Total
All Others
Total Assessed Valuation
17 It
358,378,769
1.48 %
20
140,548,344
058
9
138,852,154
0.57
15
131,889,124
0.54
218
98,997,964
0.41
1
97,350,559
0.40
28
96,921,845
0.40
5
78,157,514
0.32
2
75,033,483
0.31
4
65,264,656
0.27
319 1,281,394,412 5.28 %
22988,078,319 94.72
8 24,269,472,731 100.00%
Valencia Town Center Venture
Thomas Properties Group LLC
EQR Valencia LLC
EQR Essex Place Financing
Palmer Saugus Lid
Town Center Apartments Inc
Westcreek Properties Ltd
Newnall Land and Farming Co
F and F WC Americana Canyon Assoc LP
EQR Town Center LLC
NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: Hdi- Comm & Cone, LA County Assessor 2013114 Combined Tax Rolls
162
30 It
129,100,192
0.95%
15
58,294,089
0.43
217
53,813,455
040
2
48,863,924
0.36
22
48,120,443
0.35
1
47,204,186
0.35
191
39,835,506
0.29
167
39,213,455
0.29
103
37,368,041
0.27
3
33,460,872
0.25
751 535,274,163 3.93%
13,071,594,533 96.07
$13,606,868,696 100.00 %
City of Santa Clarita
Property Tax Levies, Tax Collections and Delinquencies
Last Ten Fiscal Years
COLLECTIONS TOTAL PERCENT
FISCAL TAXES PERCENT IN SUBSEQUENT COLLECTIONS COLLECTIONS
YEAR LEVIED COLLECTIONS COLLECTIONS YEARS TO DATE TO DATE
2004-05
10,118,983
9,878,450
97.6%
-
9,878,450
97.62%
2005-06
11,593,852
11,292,337
97.4%
20,076
11,312,413
97.57%
2006-07
12,804,630
12,317,614
96.2%
2,689
12,320,303
96.22%
2007-08
14,483,825
13,754,184
95.0%
32,577
13,786,761
95.19%
2008-09
11,925,285
11,361,604
95.3%
16,722
11,378,326
95.41%
2009-10
14,202,626
13,711,940
96.5%
-
13,711,940
96.55%
2010-11
14,172,030
13,829,640
97.6%
50,605
13,880,246
97.94%
2011-12
14,299,999
13,999,770
97.9%
49,862
14,049,633
98.25%
2012-13
18,634,850
18,297,746
98.2%
-
18,297,746
98.19%
2013-14
21,446,963
21,128,332
98.5%
21,128,332
98.51%
TAX COLLECTIONS &
DELINQUENCY
- LAST TEN FISCAL YEARS
25,000,000
20,000,000
t15,000,000
10,000,000
' 5,000,000
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
FISCALYEAR
■LEVIES OCOLLECTIONS • DELINQUENT 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
163
City of Santa Clarita
Successor Agency
Top Property Owners Based on Net Values
Fiscal Year 2013-14
Secured
Unsecured
Combined
Owner
Parcels
Value
%of Net AV
Parcels
Values
%of Net AV
Value
%of Net AV
Primary Use
1) Casden Santa Clams LLC
24
$ 61,764,649
11.33%
$ 61,764,649
10.02%
'
Vacant
(Pending Appeals On Parcels)
2) Time Wamer Cable
5
$ 41,384,483
5791%
41,384,483
6.71%
Unsecured
3) Saugus Station LLC
6
17,554,106
3.22%
17,554,106
2.85%
Industrial
4) Lyons Properties Limited
(Pending Appeals On Parcels)
1
9100,000
1.67%
9,100,000
1,48%
Commercial '
5) Peter and Barbara Coster, at. al.
(Pending Appeals On Parcels)
3
8,817,338
1.62%
1
10,274
0.01%
8,827,612
1.43%
Resides
6) DaNd Weiswasser Trust
2
7,908,032
1.45%
7,906,032
1.28%
Residential
7) 25805 San Fernando LLC
1
7,887,983
1.45%
7,887,983
1.28%
Commercial
8) RFT Sprouts LLC, at. al.
3
7,551,100
1.39%
7,551,100
1.22%
Residen0al
9) 23801 Sen Fernando Road Landco LLC
1
7,129,800
1.31%
7,129,800
1.16%
'
Institutional
10) Daiciaber Ccommercial Development
2
6,363,957
1.17%
6.363.957
1.03%
Commercial
Top Ten Total
43
134.076,965
24.60%
6
41,394,757
57.92%
175,471,722
28.46%
Agency Total
545,046.409
71,468,993
616,515,402
'
Incremental Net AV Total
$ 298,871,847
44.86%
$ 53,537,341
77.32%
$ 352,409,188
49.79%
City of Santa Clarita
' Successor Agency
Project Area Assessment Appeals Summary and Tax Collection History
Fiscal Years 2008-09 Through 2013-14
Project Area Assessment Appeals Summary—FY 2013-14
Current Year
Tax Levy Collection
Prior Year
Collection
Total
Current Year
Collection
Percentage
Total
Collection
Percentage
Reduction on
'
No. of
No. of
$ 4,002,642
Estimated No.
Pending
Total No. of Resolved
Successful
Average No. & Value of
of Appeals
Appeals
Appeals Appeals
Appeals
Reduction Appeals Pending
Allowed
Allowed
' 224 169
138
47% 55
45
$79,834,505
3,152,998
78%
$ 208,855,587
2012-13 '
3,485,808 2,786,791
Tax Collection History
For Fiscal Years 2008-09 Through 2013-14
'
Year
Current Year
Tax Levy Collection
Prior Year
Collection
Total
Current Year
Collection
Percentage
Total
Collection
Percentage
2008-09
$3,978,489 $3,773,188
$ 229,455
$ 4,002,642
95%
101%
2009-10
4,068,572 3,885,719
42,260
3,927,979
96%
97%
2010-11
3,618,835 2,744,263
(204,741)
2,539,523
76%
70%
'
2011-12(l)
3,762,457 2,934,904
218,094
3,152,998
78%
84%
2012-13 '
3,485,808 2,786,791
275,290
3,062,081
80%
88%
2013-14 '
3,498,271 2,828,495
815,124
3,643,619
81%
104%
Source: Los
Angeles County Auditor/Controller, Disbursement/Tax
Division "CRA
Remittance Advice" from Fiscal Years
1997-98 through 2010-11, and
for Fiscal Year 2011-12, November
2011 through January 2012.
(1) Sources:
Ledgers and special reports from
Los Angeles
County Auditor -Controller commencing
February 2012
pursuant to AB X 1 26.
165
City of Santa Clarita
Successor Agency
Charge Detail Report for CFD 2002-1 (Valencia Town Center)
Fiscal Year 2013-14
LAND STRUCTURE TOTAL
ASSESSOR'S ASSESSED ASSESSED ASSESSED TAXABLE ,
PARCEL NUMBER PROPERTY OWNER VALUES ($) VALUES ($) VALUES ($) ACREAGE
2861-058-071
Valencia Town Center Venture LP
$ 1,188,547
$ 181,110
$ 1,369,657
0.84
2861-058-072
Valencia Town Center Venture LP
3,294,460
17,127,213
20,421,673
4.81
2861-058-073
Valencia Town Center Venture LP
26,034,983
3,208,239
29,243,222
15.68
2861-058-076
Valencia Town Center Venture LP
829,364
82,372
911,736
1.18
2861-058-077
Valencia Town Center Venture LP
4,478,198
383,043
4,861,241
6.70
2861-058-081
Valencia Town Center Venture LP
15,144,302
160,135,141
175,279,443
14.34
2861-058-084
Valencia Town Center Venture LP
3,124,188
9,055,625
12,179,813
2.05
2861-058-085
Valencia Town Center Venture LP
407,500
203,749
611,249
0.33
Totals:
$ 54,501,542
$ 190,376,492
$ 244,878,034
45.94
IMV
$ 1,144,758
167
MAX TAX RATE
APPLIED
CLASS
($)
MAX TAX
RATE ($)
CHARGE ($)
1
$ 33,575
$ 28,341
$ 24,919
$ 21,034
1
33,575
161,495
24,919
119,858
1
33,575
526,521
24,919
390,773
'
1
33,575
39,753
24,919
29,504
1
33,575
224,951
24,919
166,954
1 1,2
33,575 8 226,155
481,526
24,922
357,379
'
1
33,575
68,828
24,919
51,083
1
33,575
11,013
24,919
8,173
$ 1,144,758
167
City of Santa Clarita
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
NOTES:
(1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of
Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond
proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita
Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance
the design, acquisition, improvement or construction of land, the City Hall Building and certain road
improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease
payments to be made by the City to the Authority equal to the principal and interest due on the
revenue bonds. At this point in time, the Agency is 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 was removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to
advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Serres were
considered defeased and the liability for those certificates was 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. In 2006 the COP Series 2001 were considered defeased and the liability
for those certificates was removed from the general long-term debt.
(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 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
168
GOVERNMENTAL ACTIVITIES
FISCAL
CERTIFICATES
TAX ALLOCATION
CAPITAL
YEAR
OF PARTICIPATION (1) (3)
LOANS
BONDS (2)
BONDS (4)
LEASES
TOTAL
2004-05
$17,640,000
$1,390,000
$5,698,192
$ -
$ -
$ -
$23,798
$24,751,990
2005-06
17,700,000
710,000
5,029,113
-
-
-
12,211
23,451,324
2006-07
16,760,000
-
4,328,207
13,785,000
-
-
36,401
34,909,608
2007-08
15,790,000
15,525,000
3,593,734
13,575,000
29,860,000
8,850,000
23,676
87,217,410
2008-09
14,790,000
15,525,000
2,823,907
13,330,000
29,860,000
8,850,000
11,370
85,190,277
2009-10
13,760,000
15,525,000
2,017,793
13,075,000
29,460,000
8,730,000
1,624
82,569,417
2010-11
12,700,000
15,525,000
1,413,786
12,805,000
29,040,000
8,605,000
-
80,088,786
2011-12
11,610,000
15,490,000
1,040,000
12,525,000
-
-
242,417
40,907,417
2012-13
10,480,549
15,379,349
810,000
12,316,280
-
-
201,880
39,188,058
2013-14
9,323,138
15,291,374
580,000
12,002,622
-
-
154,705
37,351,839
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 the Authority equal to the principal and interest due on the
revenue bonds. At this point in time, the Agency is 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 was removed from the general long-term debt.
-On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to
advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Serres were
considered defeased and the liability for those certificates was 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. In 2006 the COP Series 2001 were considered defeased and the liability
for those certificates was removed from the general long-term debt.
(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 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
168
60
50
40
30
20
10
0
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
Fiscal Yrnr
169
PERCENTAGE
BUSINESS -TYPE ACTIVITIES
OF
OUTSTANDING
TOTAL
TAXABLE
DEBT
DEBTTO
LEASE
PRIMARY
ASSESSED
PER
PERSONAL
PAYABLE
TOTAL
GOVERNMENT
VALUE
CAPITA
INCOME
$ 1,919,312
$ 1,919,312
$26,671,302
020%
$160
3%
1,586,319
1,586,319
25,037,643
0.17%
150
2%
1,236,869
1,236,869
36,146,477
0.21%
206
3%
870,149
870,149
88,087,559
0.47%
500
6%
485,304
485,304
85,675,581
0.40%
484
5%
248,304
248,304
82,817,721
0.39%
466
5%
-
-
80,088,786
0.38%
454
N/A
-
-
40,907,417
0.19%
231
N/A
-
-
39,188,058
0.19%
191
N/A
-
-
37,351,839
0.15%
179
N/A
60
50
40
30
20
10
0
OUTSTANDING DEBT PER CAPITA
Last Ten Fiscal Years
Fiscal Yrnr
169
City of Santa Clarita
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
$246 $233
238
$114 $110
04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14
Fiscal Year
Source: (1) State of California, Finance Department
170
PERCENTAGE
OUTSTANDING GENERAL BONDED DEBT
OF
TAXABLE
DEBT
FISCAL
REVENUE
CERTIFICATES OF
ASSESSED
PER
YEAR
POPULATION (1)
BONDS
PARTICIPATION
TOTAL
VALUE
CAPITA
2004-05
166,958
$
$ 19,030,000
$19,030,000
0.14%
$ 114
2005-06
167,412
18,410,000
18,410,000
0.12%
110
2006-07
175,676
13,893,228
16,760,000
30,653,228
0.18%
174
2007-08
176,030
13,575,000
31,315,000
44,890,000
0.24%
255
2008-09
177,150
13,330,000
30,315,000
43,645,000
0.20%
246
2009-10
177,641
13,075,000
29,285,000
42,360,000
0.20%
238
2010-11
176,320
12,805,000
28,225,000
41,030,000
0.19%
233
2011-12
177,445
12,525,000
27,100,000
39,625,000
0.19%
223
2012-13
204,951
12,316,280
25,859,898
38,176,178
0.18%
186
2013-14
209,130
12,002,622
24,614,512
36,617,134
0.15%
175
350
300
250
200
150
100
50
0
GENERAL BONDED DEBT OUTSTANDING
PER CAPITA
Last Ten Fiscal Years
$246 $233
238
$114 $110
04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14
Fiscal Year
Source: (1) State of California, Finance Department
170
City of Santa Clarita
Direct and Overlapping Bonded Debt
June 30, 2014
2013-14 Assessed Valuation: $24.269.472.731
(Net of Redevelopment Agency Incremental Value of $352,409,188)
'
2013-14 Population:
209,130
Percent
City's Share
Total Debt
Applicable
of Debt
06/30/2014
To City P1
06130/2014
'OVERLAPPING TAX AND OVERLAPPING BONDED DEBT:
Los Angeles County Flood Control District
$ 17,480,000
2.148%
$ 375,470
Santa Clarita Community College District
169,298,207
71.275
120,667,297
William S. Hart Union High School District
388,858,967
71.264
277,116,454
'
William S. Hart Union High School District - Community Facilities District No. 87-1
740,000
100.000
740,000
William S. Hart Union High School District - Community Facilities District No. 88-1
1,405,000
100.000
1,405,000
William S. Hart Union High School District - Community Facilities District No. 89-1
160,000
100.000
160,000
William S. Hart Union High School District - Community Facilities District No, 90-1
515,000
100.000
515,000
Los Angeles County Community College and Unified School Districts
14,176,520,000
0.000
1,418
'
Castaic Union School District
16,168,162
27.319
4,416,980
Newhall School District
20,490,000
60.500
12,396,450
Newhall School District School Facilities Improvement District No. 2011-1
55,992,354
61.732
34,565,200
Saugus Union School District
40,227,752
85.021
34,202,037
Saugus Union School District Community Facilities District No. 2006-2, Improvement Area 1
7,900,000
100.000
7,900,000
Sulphur Springs Union School District
18,506,995
91.714
16,973,505
City of Santa Clarita Open Space and Parkland Assessment District
15,340,000
100.000
15,340,000
City of Santa Clarita Community Facilities District No. 2002-1
16,210,000
100.000
16,210,000
City of Santa Clarita 1915 Act Bonds
855,000
100.000
855,000
'
Los Angeles County Regional Park and Open Space Assessment District
113,615,000
2.131
2,421,136
Total Overlapping Tax and Assessment Debt
$546,260,947
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
$1,835,420,030
2.131 %
$ 39,112,801
Los Angeles County Superintendent of Schools- Certificates of Participation
9,529,882
2.131
203,082
Los Angeles County Sanitation District No. 23 Authority
2,396,688
0.096
2,301
Los Angeles County Sanitation District No. 32 Authority
21,527,394
73.579
15,839,641
Santa Clarita Community College District- Certificates of Participation
18,750,000
71.275
13,364,063
William S. Hart Union High School District - Certificates of Participation
6,000,000
71.264
4,275,840
Castello Union School District - Certificates of Participation
3,960,000
27.319
1,081,832
Saugus Union School District - Certificates of Participation
27,365,000
85.021
23,265,997
Sulphur Springs Union School District - Certificates of Participation
24,272,492
91.714
22,261,273
Los Angeles Unified School District - Certificates of Participation
365,858,657
0.000
37
'
City of Santa Clarita Certificates of Participation
21,979,705
100.000
21,979,705 (2)
Total Gross Direct and Overlapping General Fund Debt
$ 141,386,572
Less: Los Angeles County General Fund Obligations supported by landfill revenues
107,301
Total Net Direct and Overlapping General Fund Debt
$ 141,279,271
' OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
35,890,000
100.000%
35,890,000
Total Direct Debt
It 37,319,705
Gross Overlapping Debt
686,217,814
'
Total Gross Direct and Overlapping Debt
—57I3,377,3T9_ (3)
Net Total Overlapping Debt
79ff7fflTfr1
Net Combined Total Debt
$ 723,430,218
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
'
(2) Includes $154,705 Capital Lease obligations and $580,000 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 Actuated Assessed Valuation
Per Capita
Total Direct Debt ($15,340,000)
0.06%
12,612.06
Gross Combined Total Debt
2.98%
748.91
Net Combined Total Debt
2.98%
$ 3,459.24
' STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/2014:
$0
Source: Muniservices
171
City of Santa Clarita
Legal Debt Margin Information
Last Ten Fiscal Years
FISCAL YEAR
13.14 12-13 11-12 10-11 09-10
Assessed valuation $24,698,048,493 $21,399,181,358 $21,556,659,612 $21,457,646,707 $21,600,880,848
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 6,174,512,123 5,349,795,340 5,381,596,232 5,364,411,752 5,400,220,212
Debt limit percentage 15% 15% 15% 1
Debt limit 926,176,818 802,469,301 807,239,435 804,661,752 810,033,032 '
Total net debt applicable to limit
General obligation bonds
Legal debt margin $ 926,176,818 $ 802,469,301 $ 807,239,435 $ 804,661,752 $ 810,033,032
Total debt applicable to the limit
as a percentage of debt IimO 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 the 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
172
FISCAL YEAR
08.09
07-08
06-07 05-06
04.05
$ 21,740,884,855
$ 19,177,126,742
$ 17,160,386,817 $ 14,937,115,985
$ 13,795,632,501
25%
25%
25% 25%
25%
5,435,221,214
4,794,281,686
4,290,096,704 3,734,278,996
3,448,908,125
15% 15% 15% 15% 15%
815,283,182 719,142,253 643,514,506 560,141,849 517,336,219
$ 815,283,182 $ 719,142,253 $ 643,514,506 $ 560,141,849 $ 517,336,219
0% 0% 0% 0% 0%
1,000
900
800
700
N 600
p 500
400
C 300
200
100
0
09-05 0.5-06 06-07 09-08 0&09 0410 10.11 11-12 12-13 1314
FISCAL YEAR
LEGAL DEBT MARGIN
Last Ten Fiscal Years
173
City of Santa Clarita
Pledged Revenue Coverage
Last Ten Fiscal Years
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
174
TRANSIT
LESS
NET
Fiscal
TRANSIT
OPERATING
AVAILABLE
DEBT SERVICE
Year
REVENUES (1)
EXPENSES (2)
REVENUES
Principal
Interest
'
COVERAGE
2004-05
$35,677,983
$ 14,037,109
$21,640,874 $
317,312
$ 102,395
1.18%
2005-06
22,041,436
17,242,035
4,799,401
332,993
86,230
'
1.90%
2006-07
19,468,288
19,033,240
435,048
349,449
69,388
2.15%
2007-08
24,888,921
22,204,777
2,684,144
366,720
60,298
1.72%
2008-09
26,612,418
23,014,324
3,598,094
384,846
42,172
1.60% '
2009-10
21,179,438
23,525,855
(2,346,417)
236,999
23,149
1.23%
2010-11
32,507,582
24,270,533
8,237,048
248,304
11,844
0.80%
2011-12
26,133,433
25,175,688
957,745
-
-
0.00%
2012-13
29,420,486
25,901,822
3,518,664
'
-
2013-14
33,298,907
27,044,874
6,254,034
NOTE: (1) Includes Other revenues, Transfers in and Capital contributions
(2) Includes Transfers out and Other expenses
174
City of Santa Clarita
' Demographic and Economic Statistics
Last Ten Calendar Years
YEAR
CITY OF
SANTA CLARITA
POPULATION (1)
AVERAGE
ANNUAL
PERCENTAGE
INCREASE
LOS ANGELES
COUNTY
POPULATION (1)
AVERAGE PER
ANNUAL CAPITA
PERCENTAGE PERSONAL
INCREASE INCOME (2)
TOTAL
PERSONAL
INCOME (2)
UNEMPLOYMENT
RATE (3)
' 2004
163,396
1.02%
9,806,944
0.51%
$ 33,179
$ 338,209,805
6.50%
2005
165,431
1.25%
9,816,153
0.09%
35,188
357,193,633
5.30%
2006
165,243
-0.11%
9,798,609
-0.18%
36,917
385,732,651
4.20%
2007
173,979
5.29%
9,780,808
-0.18%
39,066
402,107,608
2.70%
'
2008
174,355
0.22%
9,785,474
0.05%
44,727
567,707,000
4.70%
2009
175,103
0.43%
9,801,096
0.16%
43,119
550,832,000
7.70%
2010
176,056
0.54%
9,822,121
0.21%
43,999
565,365,000
7.70%
2011
176,320
0.15%
9,818,605
-0.04%
44,423
575,044,998
7.60%
'
2012
177,445
0.64%
9,884,632
0.67%
46,337
604,831,837
6.90%
2013
204,951
15.50%
9,958,091
0.74%
N/A
N/A
6.60%
2014
209,130
2.04%
10,041,797
0.84%
N/A
N/A
4.70%
17.00%
15.00%
13.00%
11.00%
9.00%
7.00%
5.00%
3.00%
1.00%
-1.00%
15.50%
5.29%
1.25% /0.11% 0.64%
\.22% 0.43% 0.54% 2.04%
/ 0.15%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
YEAR
Sources: (1) State of California, Finance Department, as of 1/1/2014
(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's
related information is not available. Information lags two years.
(3) State of California, Department of Employment Development (EDD)
175
City of Santa Clarita
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
* As of March 2014
NOTE: (1) Non-governmental employers
Source: 2013, 2010 Santa Clarita Valley - Real Estate and Economic Outlook
176
2005
PERCENT
2014*
of
of
TOTAL
PERCENT
6.50%
390
NUMBER
of
13.08%
310
of
TOTAL
EMPLOYER
EMPLOYEESEMPLOYMENT
EMPLOYER
Six Flags Magic Mountain
4,500
24.32%
Vons Grocery Company
Princess Cruises
1,600
8.65%
Home Depot
Henry Mayo Newhall
Memorial Hospital
1,400
7.56%
Robinsons May
Quest Diagnostics
(formerly Speciality
850
4.59%
Shield Health Care Center
The Master's College
800
4.32%
Costco Wholesale
Boston Scientific
770
4.16%
Target Stores
Woodward HRT (formerly
HR Textron)
772
4.17%
Frontier Toyota
Cal Arts
690
3.73%
JC Penney
Walmart
624
3.37%
Lowe's
Aerospace Dynamics
548
2.96%
Best Buy
Largest firms
12,554
67.83%
Largest fines
All others
5,953
32.17%
All others
Grand total
18,507
100.00%
Grand total
* As of March 2014
NOTE: (1) Non-governmental employers
Source: 2013, 2010 Santa Clarita Valley - Real Estate and Economic Outlook
176
2005
310 12.84%
245 10.14%
200 8.28%
167
PERCENT
NUMBER
of
of
TOTAL
EMPLOYEESEMPLOYMENT
6.50%
390
16.15%
316
13.08%
310
12.84%
310 12.84%
245 10.14%
200 8.28%
167
6.92%
160
6.63%
160
6.63%
157
6.50%
2,415
100.00%
N/A
N/A
2,415 100.00%
City of Santa Clarita
Full -Time and Part -Time City Employees by Function
Last Ten Fiscal Years
FISCAL YEAR
Function
13-14
12-13
11-12
10-11
09-10
08-09
07-08
06-07
05-06
04-05
General government
87.60
89.60
84.35
85.75
89.75
95.75
91.75
86.00
96.00
79.00
Public safety (1)
-
-
-
-
-
-
-
-
-
-
Public works
125.00
129.00
126.00
127.00
128.00
135.50
136.50
133.50
115.00
146.00
Community development
41.00
32.00
30.50
33.00
33.00
36.00
35.00
33.00
36.00
20.00
Parks and Recreation
111.15
108.15
105.90
106.50
110.50
111.50
110.50
108.00
106.00
101.00
Transit
11.00
11.00
13.00
12.00
12.00
14.00
11.00
11.00
8.00
8.00
Totals
375.75
369.75
359.75
364.25
373.25
392.75
384.75
371.50
361.00
354.00
400.00
390.00
380.00
370.00
360.00
350.00
340.00
330.00
CITY OF SANTA CLARITA - EMPLOYEES
Last Ten Fiscal Years
04-05 05-06 06-07 07-08 08-09 09-10 10.11 11-12 12-13 13-14
Fiscal Year
(1) Police and Fire services have been provided by the County
Source: City of Santa Clarita, Administrative Services Department - Finance Division
177
City of Santa Clarita
Operating Indicators by Function
Last Ten Fiscal Years
NOTE: (t) The City contracts the Las 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 includes those outside of the City boundaries.
Source: City of Santa Clarita, Administrative Services Department- Finance Division
178
FISCAL YEAR
Function
13-14
12-13
11-12
10-11
09.10
08.09
07-08
08-07
11"s
04-05
Police:
Parking citation issued of
4,786
5,726
5,521
6,577
5,114
4,126
5,257
4,567
6,042
5,960
Parking revenue collected
$ 323,040
$ 341,607
$ 335,663
$ 323,408
$ 238,478
$ 235,634
$ 288,076
$ 334,927
$ 27,257
$ 10,427
Public works:
Street resurfacing (miles)
20.9
18.0
24.0
24.0
33.8
14.0
15.4
15.4
16.5
12.5
Parks and Recreation:
Number of recreation Gasses
2,557
2,548
2,106
2,080
2,447
2,284
2,393
2,535
2,357
2,443
Number of facility remits (times)
14,604
13,000
11.042
10,754
10,239
9,801
9,767
19,645
19,435
17,739
Transit:
Number of customersserved p1
3,540,969
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
NOTE: (t) The City contracts the Las 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 includes those outside of the City boundaries.
Source: City of Santa Clarita, Administrative Services Department- Finance Division
178
City of Santa Clarits
Capital Assets Statistics by Function
Last Ten Fiscal Years
Function
13-14
12-13
11.12
10-11
09-10
08-09
07-08
06-07
05.06
04-05
Public works:
Streets (miles)
496
496
496
496
496
496
496
496
496
462
Street lights t"
17,843
17,843
15,081
14,963
14,939
14,739
14,429
14,000
13,200
13,000
Traffic signals (City Jurisdiction)
1,777
177
171
170
166
172
176
166
167
165
Traffic signals (Joint Jurisdiction)
5
5
6
1
6
5
4
4
5
5
Parks and recreation:
Number of parks
29
29
24
23
20
20
20
19
18
17
Community centers
2
1
1
1
1
1
1
1
1
-
Transit:
Stations
4
4
4
4
4
4
4
4
4
4
NOTE: (1) All of the above referred streetlights aretwere 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
179
City of Santa Clarita
Report to the Honorable Mayor and Members of
the City Council
January 7, 2015
McGladrey
Assurance -Tax • Consulting
McGladrey LLP
0 McGladrey
January 7, 2015
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, 2014. 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 of Santa Clarita.
G LP
Mew"r of the NSM 1Memrtl<nal n~rk d kMper a¢ Wn%to andm Ibngfnnn•,
■
■
■
■
Contents
Required Communications
Summary of Significant Accounting Estimates
Summary of Recorded Audit Adjustments
Summary of Uncorrected Misstatements
Exhibit A—Letter Communicating a Material Weakness in Internal Control Over Financial
Reporting
Exhibit B—Significant Written Communications Between Management and Our Firm
Representation Letters:
City of Santa Clarita
Appropriations Limit Agreed -Upon Procedures
Air Quality Improvement Special Revenue Fund
Santa Clarita Watershed Recreation and Conservation Authority
Santa Clarita Public Television Authority
1-2
3-4
5-6
7-8
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 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:
Area
Our Responsibilities With
Regard to the Financial
Statement Audit
Comments
Our responsibilities under auditing standards generally accepted in
the United States of America have been described to you in our
arrangement letter dated May 27, 2014.
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. The City did not adopt any
significant new accounting policies, nor have there been any changes
in existing significant accounting policies during the current period.
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.
Management's Judgments and Accounting Estimates
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 of Santa
Clarita are shown on the attached Summary of Recorded Audit
Adjustments.
Uncorrected Misstatements Uncorrected misstatements are summarized in the attached Summary
of Uncorrected Misstatements.
Area Comments
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
Accountants
Significant Issues
Discussed With
Management
Significant Difficulties
Encountered in Performing
the Audit
We are not aware of any consultations management had with other
accountants about accounting or auditing matters.
Following is a description of significant issues arising from the audit
that were discussed with management:
• Material weakness for adjustments to capital assets, as
described in Exhibit A.
• Restatement of net position of the City's previously issued
June 30, 2013 financial statements, as described in Note
12.0 of the Notes to the Financial Statements for the year
ended June 30, 2014.
At June 30, 2014, the City has reported $11,545,336 interfund
advances, net of eliminations, from the Bridges and
Thoroughfare and Public Library Special Revenue Funds.
Management has forecasted the collectibility of these
advances to determine the likelihood of repayment to the
General Fund and the Developer Fees Special Revenue
Fund. This information has been reviewed for its propriety but
has not been audited.
We did not encounter any significant difficulties in dealing with
management during the audit.
We have separately communicated a material weakness in internal
control over financial reporting identified during our audit of the basic
financial statements and major awards, as required by the
Government Auditing Standards and Office of Management and
Budget Circular A-133. This communication is attached as Exhibit A.
Copies of significant written communications between our Firm and
the management of the City, the representation letters provided to us
by management, are attached as Exhibit B.
Letter Communicating a
Material Weakness in
Internal Control Over
Financial Reporting
Significant Written
Communications Between
Management and Our Firm
We are not aware of any consultations management had with other
accountants about accounting or auditing matters.
Following is a description of significant issues arising from the audit
that were discussed with management:
• Material weakness for adjustments to capital assets, as
described in Exhibit A.
• Restatement of net position of the City's previously issued
June 30, 2013 financial statements, as described in Note
12.0 of the Notes to the Financial Statements for the year
ended June 30, 2014.
At June 30, 2014, the City has reported $11,545,336 interfund
advances, net of eliminations, from the Bridges and
Thoroughfare and Public Library Special Revenue Funds.
Management has forecasted the collectibility of these
advances to determine the likelihood of repayment to the
General Fund and the Developer Fees Special Revenue
Fund. This information has been reviewed for its propriety but
has not been audited.
We did not encounter any significant difficulties in dealing with
management during the audit.
We have separately communicated a material weakness in internal
control over financial reporting identified during our audit of the basic
financial statements and major awards, as required by the
Government Auditing Standards and Office of Management and
Budget Circular A-133. This communication is attached as Exhibit A.
Copies of significant written communications between our Firm and
the management of the City, the representation letters provided to us
by management, are attached as Exhibit B.
■
■
■
■ City of Santa Clarita
Summary of Significant Accounting Estimates
■ Year Ended June 30, 2014
■ 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, 2014 basic
■ financial statements.
Estimate
Useful Lives of Long -
Lived Assets
Franchise Tax
Receivable
Accounting Policy
The estimated useful
lives determined for
assets have the
following ranges:
Site improvements, five
to 25 years; buildings,
improvements are 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.
Certain franchise tax
receivables are
estimated for the portion
that is attributed and
earned during the fiscal
year.
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 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
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
underlying information
for developing the
estimate. Based on our
procedures, we
concluded that the
estimate was
reasonable.
■
4
For pension obligation,
management utilizes
CalPERS actuaries for
its defined benefit plan.
Management reviewed
and approved the
actuarial assumptions
and calculations used to
determine the pension
costs.
Basis for Our
Conclusions on
Management's
Reasonableness of
Estimate
Accounting Policy
Estimation Process
Estimate
Pension Obligations
A pension or OPEB
For OPEB,
We tested the
and Postemployment
asset is recorded if
management utilizes an
reasonableness of the
Benefits Other Than
contributions exceed the
actuarial consulting firm
information underlying
Pensions (OPEB)
annual required
to perform an evaluation
the actuarial
contribution. A pension
using the entry age
evaluations. Based on
or OPEB liability is
actuarial cost method.
our procedures, we
recorded if the
Management reviewed
concluded that the
contributions are less
and approved the
pension and OPEB
than the annual required
actuarial assumptions
costs recorded are
contribution.
and calculations used to
reasonable.
determine the
postemployment benefit
costs.
4
For pension obligation,
management utilizes
CalPERS actuaries for
its defined benefit plan.
Management reviewed
and approved the
actuarial assumptions
and calculations used to
determine the pension
costs.
■
■
■
■
City of Santa Clarita
Summary of Recorded Audit Adjustments
Year Ended June 30, 2014
• Remove duplicate infrastructure entries made
in 2007 and 2008
• Remove duplicate infrastructure entries and
accumulated depreciation. Reverse FY 13-14
depreciation entries
• To adjust revenue accruals for 90 -day period
of availability
• Recognize $300,000 from Newhall Land for
Utility Underground as Revenue. Reclass fund
balance
• Adjust OPEB asset
• To accrue the voters litigation settlement
• To adjust storm drain infrastructure to reflect
current inventory of capital assets
• To record the sales and use tax true -up payment
for the 4th quarter of FY 13-14
• To adjust value capital assets for annexations
from County of Los Angeles
Current year effect of change in net position
Effect on ending net position
• Correct accumulated depreciation of capital
assets
• To adjust revenue accruals for 90 -day period
of availability
Current year effect of change in net position
Effect on ending net position
• To adjust revenue accruals for 904ay penoi
of availability
• To record the sales and use tax true -up
payment for the 4th quarter of FY 13-14
Current year effect of change in fund balance
Effect on ending fund balance
Governments[ Activities
$ (3,412,332) $ - $ 3,488,518 $ - $ (76,186)
(4,583,827) - 4,688,389 - (104,562)
(16,944) (649,671) - 666,615
300,000 - (300,000) -
(9,000) - - 9,000
(600,000) - - 600,000
7,461,940 - (7,461,940) -
713,878 (713,878) - -
49,722,521 - (48,469,559) - (1,252,962)
$ 49,885236 $ (1,672,549) (47,754,592) $ 366,615 $ (824,710)
(458,095)
$ (48,212,687)
Transit Fund (Business -Type Activity)
Effect—Debit (Credit)
$ (3,638) $ - $ - $ - $ 3,638
(24,822) 12,908 - 11,914
$ (28,460) $ 12,908 - $ 11,914 $ 3,638
15,552
$ 15,552
General Fund
$ (31,660) $ (512,859) $ - $ 544,519 $ -
713,878 (713,878)
$ 682,218 $ (1,226,737) - $ 544,519 $ -
544,519
$ 544,519
Nonmajor Governmental Funds
• To adjust revenue accruals for 90 -day period
of availability $ 14,716 $ (136,812) $ - $ 122,096 $ -
• Recognize $300,000 from Newhall Land for
Utility Underground as Revenue. Recess fund
balance 300,000 (300,000)
$ 14,716 $ 163,188 - $ (177,904) $
Current year effect of change in fund balance (177,904)
Effect on ending fund balance $ (177,904)
• Accrue Invoice #7 from Mountains Recreation
and Conservation Authority $ - $ (13,230) $ $ - $ 13,230
$ $ (13.230) - $ $ 13.230
Current year effect of change in net position 13,230
Effect on ending net position $ 13.230
■
■
■
L,
■
Internal Service Funds
Effect—Debit (Credit)
Description
Assets
Liabilities Net Position Revenue
Expenses
• Correct accumulated depreciation of capital assets $
(4,002)
$ - $ - $ -
$ 4,002
• To accrue the voters litigation settlement
-
(600,000) -
600,000
$
(4,002)
$ (600,000) - $
$ 604,002
Current year effect of change in net position
604,002
Effect on ending net position
$ 604,002
Fiduciary Funds
Effect—Debit (Credit)
Descnotion
Assets
Liabilities Net Position Revenue
Exoenses
• Accrue Invoice #7 from Mountains Recreation
and Conservation Authority $ - $ (13,230) $ $ - $ 13,230
$ $ (13.230) - $ $ 13.230
Current year effect of change in net position 13,230
Effect on ending net position $ 13.230
■
■
■
L,
■
■
■
■
City of Santa Clarita
■
Summary of Uncorrected Misstatements
■
Year Ended June 30, 2014
■
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 financial statement disclosures.
Following is a
summary of
those differences:
■
Governmental Funds
Effect—increase(Decrease)
■
Description Assets Liabilities
Equity Revenue
Expenses
Prior Year Misstatement
■
• Over -estimation of liability account $ - $ -
$ 84,351 $ -
$ 84,351
■
Current Year Misstatement
• Missed accounts payable accruals - 3,500
- -
3,500
■
Total effect - -
(87,851) $
$ 87,851
Balance sheet effect $ $ 3,500
$ (3,500)
■
Public Library Special Revenue Fund
■
Effect—Increase
(Decrease)
Description Assets Liabilities
Equity Revenue
Expenses
■
Prior Year Misstatement
• Over -estimation of liability account $ - $ -
$ 1,902 $ -
$ 1,902
■
Total effect - -
(1,902) $
$ 1,902
Balance sheet effect $ $
$
Aggregate Nonmajor Funds
■
Effect—Increase
(Decrease)
Description Assets Liabilities
Equity Revenue
Expenses
■
Prior Year Misstatement
• Over -estimation of liability account $ - $ -
$ 82,449 $ -
$ 82,449
■
Current Year Misstatements
■
• Current year expenditures related to
prior years - -
(26,787) -
(26,787)
■
• Missed accounts payable accruals - 3,500
- -
3,500
Total effect - -
(59,162) $
$ 59 162
■
Balance sheet effect $ $ 3,500
$ (3,500)
■
Open Space Preservation District Special Revenue Fund
Effect—Increase(Decrease)
■
Description Assets Liabilities
Equity Revenue
Expenses
Current Year Misstatement
■
Missed accounts payable accruals $ - $ 3,500
$ - $ -
$ 3,500
Total effect - -
(3,500) $ -
$ 3,500
■
Balance sheet effect $ $ 3,500
$(3,500)
■
7
0
Santa Clarita Watershed Recreation and Conservation Authority
Effect—increase(Decrease)
Net Position/
Description Assets Liabilities Fund Balance Revenue Expenses
Current Year Misstatement
• Current year expenditures related
to prior years $ - $ - $ (26,787) $ - $ (26,787)
Total effect - - 26,787 $ $ (26,787)
Balance sheet effect $ - $ - $ -
9
Exhibit A—Letter Communicating a Material Weakness in Internal Control Over
Financial Reporting
■
McGladrey LLP
11
■ McGladrey
■
■
■
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
■
■
Independent Auditor's Report
■ To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita, California
■ 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, 2014, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements, and
■ have issued our report thereon dated December 22, 2014
■ 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 deficiency described in the Schedule of Findings and Questioned
■ Costs as item 2014-001 to be a material weakness.
■
■
■
■
■
Member of ttIe RSM IMemallonal network of IodepaM a ouminq taxa conwMng 6Ms.
■
■
F
■
■ 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 the Finding
■ The City's response to the finding identified in our audit is described in the accompanying Schedule of
Findings and Questioned Costs. The City's response was not subjected to the auditing procedures
■ applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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 City'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 City's internal control and compliance. Accordingly,
■
this
/communication is not suitable for any other purpose.
■ //�(C'_����R�Et�j CLP
■
Irvine, CA
■ December 22, 2014
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■ City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2014
IL Financial Statement Findings
Material Weakness
. Finding Number: 2014-001 — Capital Asset Adjustments
■ Criteria: Procedures should be in place to detect or prevent material misstatements of capital assets,
including, but not limited to, communication with other City departments for effective sharing of
■ information and independent review of capital asset detailed listings.
. Condition: There were several matters noted related to the City's capital assets, which, in
combination, constitute a material weakness. They include:
• A restatement to the net position of the governmental activities as of June 30, 2013 totaling
$8,176,907 for the overstatement of capital assets duplicated in between fiscal years 2006
and 2007.
• A restatement to the net position of the governmental activities as of June 30, 2013 totaling
$7,461,940 for the net understatement of capital assets as the result of storm drain
. infrastructure contributed to the County of Los Angeles but not disposed at the time of
contribution, and to record storm drain infrastructure that was not identified during the
■ implementation of Governmental Accounting Standards Board Statement No. 34.
. • A restatement to the net position of the governmental activities as of June 30, 2013 totaling
$48,469,559 for the understatement of capital assets that were annexed by the City for
■ capital assets previously reported by the County of Los Angeles between fiscal years 1991
and 2013, but not recorded at the date of the exchange.
Cause: These issues were systematic, as the decentralization of the City's departments did not allow
for effective communication between management to identify accounting events and transactions that
impacted the reporting of capital assets. In addition, the internal controls implemented by management
failed to detect errors in the financial reporting of capital assets.
■ Recommendation: We recommend implementing internal control policies and procedures that will
■ provide reasonable assurance that all capital asset transactions, however acquired or retired, are
properly reported in the financial statements.
Management's Response: As a result of the due diligence of City staff in reviewing its fixed asset
policy, each of the following items was discovered and action was taken to make the corrections. The
City brought each item to the attention of its auditors, McGladrey LLP. City staff has implemented
internal controls to ensure capital assets are recorded accurately.
• Finance staff began using the fixed asset module in the City's financial system during fiscal
year 2013-2014. During the update process, duplicate entries were discovered for donated
infrastructure. The City's Public Works department provides Finance with copies of bond
exoneration letters that are issued to the developers. The entries occurred when partial
exonerations were recorded and then duplicated when a final exoneration letter was issued in
■ a subsequent year. Finance staff will confirm with Public Works staff that exonerations are
complete and will only capitalize those assets.
■
■
■
. City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2014
• Finance staff has had extensive discussions with City engineers regarding the process of
.
storm drain acceptance from developers. As stated above, Finance staff will continue to
receive copies of the bond exoneration letters that relate to storm drains, but will also receive
.
a copy of the letter of acceptance from the County Flood Control District. Public works will not
release a developer's storm drain bond until the County has accepted the storm drain. In the
case of a bond exoneration letter for a storm drain that is not accompanied by the County's
acceptance letter, Finance staff will communicate directly with Public Works to inquire if the
storm drain will be transferred to the County. In the event the storm drain is not up to the
County's standards for transfer, then the storm drain will be capitalized in accordance with
the City's capital asset policy.
■
The City discovered that capital assets had been acquired with annexations from Los
Angeles County in fiscal years 2012 and 2013. Various divisions in the City such as Public
Works and Parks Planning did inventory assets that were received in the annexations.
.
Annexed streets were added to the City's pavement management inventory. The divisions,
however, did not receive any financial information regarding the assets from the County.
In order to ensure capital assets are recorded for future annexations, the City's Planning
division will provide Finance with copies of all certificates of completion. Finance staff will also
review Council agenda reports for any future annexations and communicate directly with the
Planning division staff. Finance staff will also request an inventory of annexed assets from
the City divisions that will be maintaining those assets. Future annexation procedures will
incorporate a request to the County to provide cost and depreciation information for capital
assets to ensure an accurate inventory is recorded by the City.
Exhibit B—Significant Written Communications Between Management and Our
Firm
SANTA CLARITA
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
December 22, 2014 Phone: (661) 259-2489 • FAX: (661) 259-8125
u .sanra-darita.corn
McGladrey LLP
18401 Von Karman Ave., 5th Floor
Irvine, CA 92612
E
0
This representation letter is provided in connection with your audit of the basic financial statements of the
City of Santa Clarita (the City) as of and for the year ended June 30, 2014, and the related notes to the
financial statements, for the purpose of expressing opinions on whether the financial statements are
.
presented fairly, in all material respects, in accordance with accounting principles generally accepted in
the United States of America (U.S. GAAP).
We confirm, to the best of our knowledge and belief, that as of December 22, 2014:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
May 27, 2014, 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
i
and current events and our assumptions about conditions we expect to exist and courses of action we
expect to take.
5. Related -party relationships and transactions have been 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 agree with the restatement of previously issued financial statements resulting from adjustments of
capital assets. This restatement corrects an error in those financial statements that we were not
aware of when those financial statements were issued. Furthermore, we are not aware of any other
errors in those financial statements and believe that capital assets are correctly reported in all
'
material respects.
E
0
McGladrey LLP
December 22, 2014
Page 2
As of and for the year ended June 30, 2014, we believe that the effects of the uncorrected misstatements
aggregated by you and summarized below are immaterial, both individually and in the aggregate, to the
basic financial statements taken as a whole. 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—Increase
Prior Year Misstatement
• Over -estimation of liability account $ - $ - $ 84,351 $ - $ 84,351
Current Year Misstatement
• Missed accounts payable accruals - 3,500 - - 3,500
Total effect - - (87,851) $ $ 87.851
Balance sheet effect $ $ 3,500 $ (3.500)
Public Library Special Revenue Fund
Prior Year Misstatement
• Over -estimation of liability account $ - $ - $ 1,902 $ - $ 1,902
Total effect - (1.902) $ - $ 1.902
Balance sheet effect $ $ $ -
Aggregate Nonmajor Funds
Effect—Increase
• Over -estimation of liability account $ - $ - $ 82,449 $ - $ 82,449
Current Year Misstatements
• Current year expenditures related to
prior years - - (26,787) - (26,787)
• Missed accounts payable accruals - 3,500 - - 3,500
Total effect - (59,162) $ - $ 59,162
Balance sheet effect $ $ 3,500 $ (3,500)
OSPD Special Revenue Fund
Effect—Increase
Current Year Misstatement
• Missed accounts payable accruals $ - $ 3,500 $ - $ - $ 3,500
Total effect - - (3,500) $ - $ 3,500
Balance sheet effect $ $ 3.500
■
■
■
McGladrey LLP
December 22, 2014
■
Page 3
■
Information Provided
■
9. 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 entity from whom you determined it necessary to obtain
■
audit evidence.
d. Minutes of the meetings of City Council.
■
10. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
■
11. 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.
■
12. We have no knowledge of allegations of fraud or suspected fraud affecting the entity's financial
statements involving:
■
a. Management.
■
b. Employees who have significant roles in internal control.
■
c. Others where the fraud could have a material effect on the financial statements.
■
13. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial
statements received in communications from employees, former employees, analysts, regulators or
■
others.
■
14. We have no knowledge of noncompliance or suspected noncompliance with laws or regulations
whose effects should be considered when preparing financial statements.
■
15. We have disclosed to you all known actual or possible litigation and claims whose effects should be
■
- considered when preparing the financial statements.
16. We have disclosed to you the identity of the entity's related parties and all the related -party
■
relationships and transactions of which we are aware.
■
17. We have informed you of all material weaknesses in the design or operation of internal controls that
could adversely affect the entity's ability to record, process, summarize and report financial data.
■
18. There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
■
Supplementary Information
■
19. 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.
■
■
■
■
■
McGladrey LLP
December 22, 2014
Page 4
■
b. We believe such information, including its form and content, is fairly presented in accordance with
■
U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior
!
period.
!
20. With respect to the management's discussion and analysis, budgetary comparison information and
schedules of funding progress presented as required by the 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 by the Governmental Accounting Standards Board.
■
c. The methods of measurement or presentation have not changed from those used In the prior
■
period.
21. 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
■
that management:
22. Is responsible for compliance with the laws, regulations, and provisions of contracts and grant
■
agreements applicable to the City.
■
23. Has identified and disclosed to the auditor all instances, that have occurred or are likely to have
occurred, of fraud and noncompliance with provisions of laws and regulations that have a material
■
effect on the financial statements or other financial data significant to the audit objectives, and any
other instances that warrant the attention of those charged with governance.
!
24. Has identified and disclosed to the auditor all instances, that have occurred or are likely to have
occurred, of noncompliance with provisions of contracts and grant agreements that have a material
■
effect on the determination of financial statement amounts or other financial data significant to the
audit objectives.
■
25. Has identified and disclosed to the auditor all instances, that have occurred or are likely to have
■
occurred, of abuse that could be quantitatively or qualitatively material to the financial statements or
other financial data significant to the audit objectives.
■
26. Has taken timely and appropriate steps to remedy fraud; noncompliance with provisions of laws,
regulations, contracts and grant agreements; or abuse that the auditor reports.
■
27. Has a process to track the status of audit findings and recommendations.
!
28. Has identified for the auditor previous audits, attestation engagements and other studies related to
!
the audit objectives, and whether related recommendations have been implemented.
!
■
■
■
■
■
McGladrey LLP
December 22, 2014
■
Page 5
■
29. Has provided views on the auditor's reported findings, conclusions and recommendations, as well as
■
management's planned corrective actions, for the report.
30. Acknowledges its responsibilities as it relates to non -audit services performed by the auditor,
■
including a statement that it assumes all management responsibilities; that it oversees the services by
designating an individual, preferably within senior management, who possesses suitable skill,
knowledge or experience; that it evaluates the adequacy and results of the services performed; and
that it accepts responsibility for the results of the services.
■
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:
1. Management is responsible for complying, and has complied, with the requirements of Circular
■
A-133.
■
2. Management is responsible for understanding and complying with the requirements of laws,
regulations, and the provisions of contracts and grant agreements related to each of its federal
■
programs.
■
3. Management is responsible for establishing and maintaining, and has established and maintained,
effective internal control over compliance for federal programs that provides reasonable assurance
that the City is managing federal awards in compliance with laws, regulations, and the provisions of
■
contracts or grant agreements that could have a material effect on its federal programs.
■
4. Management has prepared the schedule of expenditures of federal awards in accordance with
Circular A-133 and has included expenditures made during the period being audited for all awards
■
provided by federal agencies in the form of grants, federal cost -reimbursement contracts, direct
appropriations and other assistance.
■
5. Management has identified and disclosed to the auditor 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.
■
6. Management has 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.
7. Management has identified and disclosed to the auditor all amounts questioned and all known
direct federal awards.
noncompliance with the and material compliance requirements of
■
8. Management believes that the City has complied with the direct and material compliance
requirements.
■
9. Management has 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.
■
10. Management has provided to the auditor its interpretations of any compliance requirements that are
subject to varying interpretations.
11. Management has disclosed to the auditor 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 the auditor's report.
■
■
■
■
' men Hernandez, Dep`ufy City Manage __)
■
■
■
McGladrey LLP
■
December 22, 2014
■
Page 6
■
12.
Management has disclosed to the auditor 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 the auditor's report.
13.
Management has provided the auditor 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.
.
14.
Management has disclosed all known noncompliance with direct and material compliance
requirements occurring subsequent to the period covered by the auditor's report or stating that there
■
were no such known instances.
15.
Management has disclosed whether any changes in internal control over compliance or other factors
■
that might significantly affect internal control, including any corrective action taken by management
with regard to significant deficiencies and material weaknesses in internal control over compliance,
■
have occurred subsequent to the date as of which compliance is audited.
.
16.
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.
■
17.
The copies of federal program financial reports provided to the auditor are true copies of the reports
submitted, or electronically transmitted, to the federal agency or pass-through entity, as applicable.
■
18.
Management has 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.
19.
Management has charged costs to federal awards in accordance with applicable cost principles.
■
20.
Management is responsible for, and has accurately prepared, the summary schedule of prior audit
findings to include all findings required to be included by Circular A-133.
21.
Management has accurately completed the appropriate sections of the data collection form.
■
22.
If applicable, management has disclosed all contracts or other agreements with service organizations.
CITY OF SANTA CLARITA, CALIFORNIA
■
■
' men Hernandez, Dep`ufy City Manage __)
and Director of Administrative Services
■
■
Carmen Magana, Finance and Technology
Manager
■
■
■
■
SANTA CLARITA
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
www. san ta-clarila. com
December 22, 2014
■ McGladrey LLP
18401 Von Karmen Ave., 5th Floor
S Irvine, CA 92612
In connection with your engagement to perform, in accordance with attestation standards established by
the American Institute of Certified Public Accountants, specified agreed-upon procedures with respect to
. certain records and transactions of the City of Santa Clarita (the City) for the year ended June 30, 2014
for the purpose of determining as to whether the City's appropriations limit calculation was computed in
accordance with Article XIII -13 of the Constitution of the State of California, we confirm, to the best of our
knowledge and belief, the following representations made to you during the course of your engagement:
1. We understand that we have the responsibility for compliance with the appropriations limit calculation.
2. We are responsible for establishing and maintaining effective internal control over our compliance
with the appropriations limit calculation.
3. There are no known matters contradicting the compliance with the appropriations limit calculation for
. the year ended June 30, 2014 or through the date of this letter.
4. We have made available to you all records and related data relevant to the subject matter and the
agreed-upon procedures.
5. There has been no knowledge of fraud or suspected fraud affecting the entity involving:
. a. Management.
■ b. Employees who have significant roles in internal control.
6. We acknowledge our responsibility for the design and implementation of programs and controls to
provide reasonable assurance that fraud is prevented and detected.
. 7. We have no knowledge of any allegations of fraud or suspected fraud affecting the City received in
communications from employees, former employees, analysts, regulators or others.
8. We have responded fully to all inquiries made to us by you during your engagement.
II
L.1
0
McGladrey LLP
December 22, 2014
Page 2
9. During the course of your engagement, 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.
CITY OF SANTA CLARITA, CALIFORNIA
Darren Hernandez, Deputy ity Manager
and Director of Administrative Servic
Carmen Magana, Finance and T' hnology
Manager
City of
■ SANTA CLARITA
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
■
Phone: (661) 259-2489 • FAX: (661) 259-8125
December 22, 2014 unutu.santa-clantaxom
■
■
McGladrey LLP
18401 Von Karman Avenue, 5" Floor
■
Irvine, CA 92612
■
This representation letter is provided in connection with your audit of the basic financial statements of the
Air Quality Improvement Special Revenue Fund (the Fund), as of and for the year ended June 30, 2014
■
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 of
■
America (U.S. GAAP).
We confirm, to the best of our knowledge and belief, as of December 22, 2014:
■
Financial Statements
■
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
■
May 27, 2014, 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 relationships and transactions have been 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 have no knowledge of any uncorrected misstatements in the financial statements.
■
■
■
■
McGladrey LLP
December 22, 2014
■
Page 2
■
Information Provided
■
9. 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 entity from whom you determined it necessary to obtain
■
audit evidence.
■
d. Minutes of the meetings of City Council.
10. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
■
11. 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.
■
12. We have no knowledge of allegations of fraud or suspected fraud affecting the entity's financial
statements involving:
■
a. Management.
■
b. Employees who have significant roles in internal control.
■
c. Others where the fraud could have a material effect on the financial statements.
■
13. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial
statements received in communications from employees, former employees, analysts, regulators or
■
others.
■
14. We have no knowledge of noncompliance or suspected noncompliance with laws or regulations
whose effects should be considered when preparing financial statements.
15. We have disclosed to you all known actual or possible litigation and claims whose effects should be
■
considered when preparing the financial statements.
16. We have disclosed to you the identity of the entity's related parties and all the related -party
■
relationships and transactions of which we are aware.
■
17. We are aware of no significant deficiencies, including material weaknesses, in the design or operation
of internal controls that could adversely affect the entity's ability to record, process, summarize and
■
report financial data.
■
■
21.
■
■
McGladrey LLP
■
December 22, 2014
■
Page 3
■
There are no known communications from regulatory agencies, or other practitioners concerning the
■
Compliance Considerations
■
In connection with your tests of compliance for the Fund conducted in accordance with Assembly
Bill 2766, Chapter 1705 (Health and Safety Code Sections 44220 through 44247), (AB 2766), during the
■
year ended June 30, 2014, we confirm, to the best of our knowledge and belief, the following
We have made available to you all documentation related to the Fund's compliance with AB 2766.
representations made to you during the course of your engagement:
■
There has been no knowledge of fraud or suspected fraud affecting the Fund involving:
■
16. We are responsible for the Fund's compliance with AB 2766.
■
19. We are responsible for establishing and maintaining effective internal control over the Fund's
■
compliance with AB 2766.
■
20. We have performed an evaluation of the Fund's compliance with AB 2766. Based on our evaluation,
■
the Fund has complied with AB 2766 during the year ended June 30, 2013 based on the compliance
25.
requirements of AB 2766, except for the City did not submit its Annual Report for fiscal year 2011-
■
2012 in a timely manner. The submission of the report was dated February 6, 2013. Per the AB 2766
provide reasonable assurance that fraud is prevented and detected. We have no knowledge of any
Resource Guide dated March 2013, the South Coast Air Quality Management District must receive
■
the annual program progress report no later than the first Friday in February of each year. Therefore,
■
the fiscal year 2012-2013 Annual Report's due date was February 4, 2014.
■
21.
We have disclosed to you all known noncompliance with AB 2766 during the year ended June 30,
2014, or through the date of this letter.
■
22.
There are no known communications from regulatory agencies, or other practitioners concerning the
■
Fund's possible noncompliance with AB 2766 received by us during the year ended June 30, 2014, or
through the dale of this letter.
■
23.
We have made available to you all documentation related to the Fund's compliance with AB 2766.
■
24.
There has been no knowledge of fraud or suspected fraud affecting the Fund involving:
■
a. Management.
■
b. Employees who have significant roles in internal control.
■
c. Others where fraud could have a material effect on compliance with AB 2766.
25.
We acknowledge our responsibility for the design and implementation of programs and controls to
■
provide reasonable assurance that fraud is prevented and detected. We have no knowledge of any
allegations of fraud or suspected fraud affecting the Fund received in communications from
■
employees, former employees, analysts, regulators or others.
■
26.
We have responded fully to all inquiries made to us by you during your engagement.
■
■
■
McGladrey LLP
December 22, 2014
■
Page 4
■
27. During the course of your engagement, 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.
■
CITY OF SANTA CLARITA, CALIFORNIA
■
■
Fran ernandez, Deputy City Mana
and Director of Administrative Services
■
■ Carmen Magana, Finance and chnology
Manager
f
Ciry o
SANTA CLARITA
4. Significant assumptions used by us in making accounting estimates, including those measured at fair
value, are reasonable and reflect ourjudgment 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.
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
■
Phone: (661) 259-2489 • FAX: (661) 259-8125
.
w .utnta-clarita.com
■
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
■
December 22, 2014
■
3. We acknowledge our responsibility for the design, Implementation and maintenance of internal control
McGladrey LLP
18401 Von Karman Ave., 5th Floor
■
Irvine, CA 92612
This representation letter is provided in connection with your audit of the financial statements of the
governmental activities and the major fund of the Santa Clarita Watershed Recreation and Conservation
Authority (the Authority) as of and for the year ended June 30, 2014, and the related notes to the financial
statements, 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 of America (U.S. GAAP).
We confirm, to the best of our knowledge and belief, that as of December 22, 2014:
Financial Statements
4. Significant assumptions used by us in making accounting estimates, including those measured at fair
value, are reasonable and reflect ourjudgment 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.
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
May 27, 2014, 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 ourjudgment 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 relationships and transactions have been 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.
McGladrey LLP
December 22, 2014
Page 2
As of and for the year ended June 30, 2014, we believe that the effects of the uncorrected misstatements
aggregated by you and summarized below are immaterial, both individually and in the aggregate, to the
basic financial statements taken as a whole. 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.
Effect—Increase (Decrease)
Net Position/
Description Assets Liabilities Fund Balance Revenue Expenses
Current Year Misstatement
• Current year expenditures related
to prior years $ - $ - $ (26,787) $ $ (26,787)
Total effect - 26,787 $ $ (26,787)
Balance sheet effect $ $ $
Information Provided
8. 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 entity from whom you determined it necessary to obtain
audit evidence.
d. Minutes of the meetings of the governing board of the Santa Clarita Watershed Recreation and
Conservation Authority,
9. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
10. 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.
11. We have no knowledge of allegations of fraud or suspected fraud affecting the entity's financial
statements involving:
a. Management.
b. Employees who have significant roles in internal control.
c. Others where the fraud could have a material effect on the financial statements.
12. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial
statements received in communications from employees, former employees, analysts, regulators or
others.
13. We have no knowledge of noncompliance or suspected noncompliance with laws or regulations
whose effects should be considered when preparing financial statements.
■
■
■
McGladrey LLP
December 22, 2014
■
Page 3
■
14. We have disclosed to you all known actual or possible litigation and claims whose effects should be
■
considered when preparing the financial statements.
15. We have disclosed to you the identity of the entity's related parties and all the related-party
■
relationships and transactions of which we are aware.
■
16. We are aware of no significant deficiencies, including material weaknesses, in the design or operation
of internal controls that could adversely affect the entity's ability to record, process, summarize and
■
report financial data.
17. There have been no communications from regulatory agencies concerning noncompliance with, or
■
deficiencies in, financial reporting practices.
■
Required Supplementary Information
■
18. With respect to the budgetary comparison information as required by the 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 by the Governmental Accounting Standards Board.
■
c. The methods of measurement or presentation have not changed from those used in the prior
period.
■
19. We have omitted the management's discussion and analysis that the Governmental Accounting
Standards Board requires to be presented to supplement the basic financial statements.
■
20. 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.
■
SANTA CLARITA WATERSHED RECREATION
■
AND CONSERVATION AUTHORITY
■
■
Darren Hernandez, Deputy City Ma
■
and Director of Administrative Ser '
■
Carmen Magana, Finance and(.Technology
■ Manager
■
■
■
■
■
City of
SANTA CLARITA
■ ON
23920 Valencia Boulevard • Suite 300 • Santa Clarita, California 91355-2196
Phone: (661) 259-2489 • FAX: (661) 259-8125
unutu.santa-ciarita.com
December 22, 2014
McGladrey LLP
18401 Von Karman Ave., 5th Floor
Irvine, CA 92612
This representation letter is provided in connection with your audits of the basic financial statements of
.
the Santa Clarita Public Television Authority (the Authority) as of and for the years ended June 30, 2014
and 2013, and the related notes to the financial statements, 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 of America (U.S. GAAP).
We confirm, to the best of our knowledge and belief, that as of December 22, 2014.
Financial Statements
.
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
May 27, 2014, 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 relationships and transactions have been 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 have no knowledge of any uncorrected misstatements in the financial statements.
■ ON
McGledrey LLP
December 22, 2014
Page 2
Information Provided
9. 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 entity from whom you determined it necessary to obtain
audit evidence.
d. Minutes of the meetings of governing board of the Santa Clarita Public Television Authority.
10. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
11. 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.
12. We have no knowledge of allegations of fraud or suspected fraud affecting the entity's financial
statements involving:
a. Management.
b. Employees who have significant roles in internal control.
c. Others where the fraud could have a material effect on the financial statements.
13. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial
statements received in communications from employees, former employees, analysts, regulators or
others.
14. We have no knowledge of noncompliance or suspected noncompliance with laws or regulations
whose effects should be considered when preparing financial statements.
15. We have disclosed to you all known actual or possible litigation and claims whose effects should be
considered when preparing the financial statements.
16. We have disclosed to you the identity of the entity's related parties and all the related -party
relationships and transactions of which we are aware.
17. We are aware of no significant deficiencies, including material weaknesses, in the design or operation
of internal controls that could adversely affect the entity's ability to record, process, summarize and
report financial data.
18. There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
19. We have omitted the management's discussion and analysis that U.S. GAAP requires to be
presented to supplement the basic financial statements.
■
■
McGladrey LLP
December 22, 2014
Page 3
20. We have omitted the management's discussion and analysis and the budgetary comparison
information that the Governmental Accounting Standards Board requires to be presented to
supplement the basic financial statements.
21. During the course of your audits, 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.
SANTA CLARITA PUBLIC TELEVISION AUTHORITY
arren Hernandez, Deputy City Manager—
and
an eand Director of Administrative Servic
e. OVLr4, a �fVlae�a.
Carmen Magana, Finance an Technology
Manager
City of Santa Clarita
Appropriations Limit
Calculation
June 30, 2014
McGladrey LLP
0 McGladrey
Independent Accountant's Report on
Applying Agreed -Upon Procedures
To the Honorable Mayor and Members of the
City Council of the City of Santa Clarita
Santa Clarita, CA
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, 2014. 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 X111-8 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 XIII -B
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
E those that were selected by a recorded vote of the City Council.
IPFindings: No exceptions were noted as a result of our procedures.
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
M worksheet No. 6 to the other worksheets described in No. 1 above.
Findings: No exceptions were noted as a result of our procedures.
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.
Member of the RSMInternational network of Independent aaooming, tax and mnsuldng firms.
■
■
■ 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 -13 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.
%2fC tw� G �P
Irvine, CA
December 22, 2014
City of Santa Clarita
Appropriations Limit Calculation
Year Ended June 30, 2014
A. Appropriations Limit FY 2012-2013
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 2013-2014
See Notes to Appropriations Limit Calculation.
3
Amount Source
$ 257,700,093
1.051200
1.154400
1.213505
Prior Year
State Department of Finance
State Department of Finance
(B.1xB.2)
55,020,331 [(B.3-1)xA)]
55,020,331 (C+D)
$ 312,720,424 (A+E)
City of Santa Clarita
Notes to Appropriations Limit Calculation
Note 1. Purpose of Limited Procedures Review
Under Article XIII -B 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 XIII -B, 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 XIII -B, 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 of Santa Clarita (the City) may use any of these methods in any year. The method adopted by the
City for fiscal year 2014 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 2014 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, 2014.
The Transit Enterprise Fund
of the City of Santa Clarita
Financial Report
Year Ended June 30. 2014
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 6-9
■
■
McGladrey
■
■
■
■
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
■ of the City of Santa Clarita
Santa Clarita, CA
■
McGladrey LLP
Report on the Financial Statements
■ We have audited the accompanying financial statements of the Transit Enterprise Fund (the Fund), an
enterprise fund of the City of Santa Clanta (the City), as of and for the year ended June 30, 2014, 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, 2014, 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.
■ 1
■ Member of the PSM International network of Independent aaoundng, tax and consulting 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, 2014, 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 December 22, 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.
■ /a/LS�i�tcy G �P
■ Irvine, CA
December 22, 2014
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Financial Statements
■
The Transit Enterprise Fund of the City of Santa Clarita
Statement of Net Position
June 30, 2014
Assets
Current Assets
Pooled cash and investments
$ 1,837,412
Interest receivable
4,518
Prepaids
241,098
Due from other governments
4,217,953
Total current assets
6,300,981
Noncurrent Assets
Capital assets, net
Total assets
Liabilities
83,296,545
89,597,526
Current Liabilities
Accounts payable 2,880,380
Compensated absences payable 39,676
Total current liabilities 2,920,056
Noncurrent Liabilities
Compensated absences payable
Total noncurrent liabilities
Total liabilities
Net Position
Net Investment in Capital Assets
Unrestricted
Total net position
See Notes to Financial Statements.
1
3
26,714
26,714
2,946,770
83,296,545
3,354,211
$ 86,650,756
■
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, 2014
■
Operating revenues:
■
Metrolink and EZ pass revenues
$ 150,409
Fixed -route passenger fares
3,802,085
■
Dial -A -Ride passenger fares
101,202
County of Los Angeles operating assistance
1,804,728
■
Specialized transit services
921,797
Miscellaneous revenues
807,276
■
Total operating revenues
7,587,497
■
Operating expenses:
Salaries and benefits
1,127,772
■
Administrative services
685,132
Contract transportation services
17,655,898
■
Insurance
82,670
Supplies, utilities and other
2,073,731
■
Depreciation
5,101,973
Total operating expenses
26,727,176
■
Operating loss
(19,139,679)
■
Nonoperating revenues (expenses):
Proposition A discretionary
4,856,195
■
Proposition A specialized transportation
806,933
Proposition C expansion
182,401
Proposition C BSIP
47,346
Proposition C security
200,128
Proposition C transit mitigation
30,819
Proposition C MOSIP
32,220
Measure R bus operations
2,346,596
Measure R clean fuel
352,611
■
Intergovernmental revenues
128,878
Interest income
4,791
■
Loss on disposal of capital assets
(91,985)
Total nonoperating revenues
8,896,933
.
Loss before contributions and transfers
(10,242,746)
Capital contributions:
■
Federal Transit Administration capital grants
10,251,885
Proposition C MOSIP
552,862
■
Total capital contributions
10,804,747
■
Transfers from other fund of the City of Santa Clarita
5,917,750
Transfers to other fund of the City of Santa Clarita
(225,718)
■
Change in net position
6,254,033
Net position
Beginning of year
80,396,723
End of year
$ 86,650,756
.
See Notes to Financial Statements.
4
■
The Transit Enterprise Fund of the City of Santa Clarita
Statement of Cash Flows
For the Year Ended June 30, 2014
Cash Flows From Operating Activities
Cash received from customers and users
$ 6,780,221
Cash payments to suppliers of goods and services
(21,348,841)
Cash payments to employees
(1,123,414)
Cash received from other sources
807,276
Net cash used in operating activities
(14,884,758)
Cash Flows From Noncapital Financing Activities
Cash transfers out
Cash transfers in
Loans repaid to General Fund
Federal and state funding received
Net cash provided by noncapital financing activities
■ Cash Flows From Capital and Related Financing Activities
Federal and state capital contributions
i Acquisition of capital assets
Net cash provided by capital and related financing activities
Cash Flows From Investing Activities
Interest received
Net cash provided by investing activities
Net increase in cash and cash equivalents
Pooled Cash and Cash Equivalents, beginning of year
Pooled Cash and Cash Equivalents, end of year
Reconciliation of Operating Loss to Net Cash Used in Operating Activities
Operating loss
Adjustments to reconcile operating loss to net cash used in operating activities
Depreciation
Changes in operating assets and liabilities:
(Increase) in prepaids
(Decrease) in accounts payable and accrued liabilities
Increase in compensated absences
Total adjustments
Net cash used in operating activities
Noncash Capital, and Financing Activities
Disposal of capital assets
See Notes to Financial Statements.
I.7
(225,718)
5,917,750
(1,738,468)
8,481,126
12,434,690
16,216,303
(11,929,096)
4,287,207
273
273
1,837,412
$ 1,837,412
$ (19,139,679)
5,101,973
(837)
(850,573)
4,358
4,254,921
$ (14,884,758)
$ (91,985)
IN
r
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.
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 proprietary activities of 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 and expenses result from the local public transit services for the local, commuter,
Dial -A -Ride and Access Services, Inc., specialized and transit operations and maintenance. The
operating revenues consist of charges to customers and users for the transit services provided. Operating
expenses include the costs of providing these services, administrative expenses, and depreciation
expense. All revenues and expenses not meeting these definitions and which are not capital in nature are
reported as non-operating revenues and expenses.
The Fund recognizes assets of non-exchange transactions in the period when the underlying transaction
occurs, when an enforceable legal claim has arisen, or when all eligibility requirements are met.
Non-exchange transactions occur when the Fund receives value from another party without giving equal
or nearly equal value in return. Various intergovernmental revenues and most donations are examples of
non-exchange transactions. Under the terms of grant agreements, the Fund has an enforceable claim
with other governmental agencies when specific program expenses are incurred. The Fund has an
enforceable claim to local funding allocations when the allocations are determined by the other
governmental agencies on an annual basis.
Pooled 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.
The Fund's cash balance is considered to be a cash equivalent since it has the ability deposit or withdraw
. funds from the pool on demand.
s 6
■
r
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)
Prepaids: Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the financial statements.
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 grants.
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.
• 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.
A
ON
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)
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, 2014 was $66,390 and was
considered due within one year.
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, 2014, which may impact future financial presentations. Except as
noted below, management has not currently determined what, if any, impact implementation of the
following statement may have on future financial statements of the Fund:
• GASB Statement No. 69, Government Combinations and Disposals of Government Operations:
effective for the Fund's fiscal year ending June 30, 2015.
Note 2. Pooled Cash and Investments
The Fund's pooled cash and investments consisted of $1,837,412 of pooled cash and investments at
June 30, 2014.
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.
As of June 30, 2014, none of the Fund's pooled cash was subject to concentration of credit risk or
custodial credit risk.
Note 3. Due From Other Governments
Due from other governments consists of the following at June 30, 2014:
Agency
Los Angeles County
Federal Transit Administration
Other federal agencies
Other agencies
Amount
$ 3,407,026
267,928
1,865
541,134
$ 4,217,953
The Transit Enterprise Fund of the City of Santa Clarita
Notes to Financial Statements
■ Note 4. Capital Assets
Changes in capital assets of the Fund at June 30, 2014 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
Balance Balance
July 1, 2013 Additions Deletions Transfers June 30, 2014
$ 15,087,880
Less accumulated depreciation:
$ -
Site improvements
$ 15,087,880
Building and improvements
■
Equipment
(4,827,664)
Total accumulated depreciation
■
Total depreciable assets, net
(34,677,890)
Capital assets, net
Balance Balance
July 1, 2013 Additions Deletions Transfers June 30, 2014
$ 15,087,880
$ -
$ -
$ -
$ 15,087,880
2,145,290
2,765,626
(9,275,693)
(4,827,664)
83,252
17,233,170
2,765,626
(34,677,890)
(4,827,664)
15,171,132
(34,399,071)
59,328,237
4,061,497
(91,985) 4,827,664
68,125,413
7,413,201
-
-
4,747,181
12,160,382
41,483,799
-
-
-
41,483,799
45,109,127
9,163,470
(5472,777)
80,483
48,880,303
94,006,127
9,163,470
(5,472,777)
4,827,664
102,524,484
(1,116,174)
(473,990)
- -
(1,590,164)
(8,392,346)
(883,347)
- -
(9,275,693)
(25,169,370)
(3,744,636)
5,380,792
(23,533,214)
(34,677,890)
(5,101,973)
5,380,792 -
(34,399,071)
59,328,237
4,061,497
(91,985) 4,827,664
68,125,413
$ 76.561,407
$ 6,827,123
$ (91,985) $
$ 83.296.545
Depreciation expense of the Fund was $5,101,973 for the year ended June 30, 2014.
Note 5. Interfund Activity
During the year ended June 30, 2014, the Fund transferred $225,718 to the General Fund and nonmajor
governmental funds of the City for transit operation forecasts for support of transit operations. The
management of the City approved the transferred in from the nonmajor governmental funds $5,917,750
for Propositions A and C as follows:
Proposition A $ 4,177,523
Proposition C 1,740,227
$ 5,917,750
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 $685,132 for the year ended June 30, 2014.
E
City of Santa Clarita,
California
Compliance Report
Year Ended June 30, 2014
Contents
Schedule of Expenditures of Federal Awards 1-2
Notes to Schedule of Expenditures of Federal Awards 3
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
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 8-10
Schedule of Prior Year Findings and Questioned Costs 11
■
■
■
City of Santa Clarita, California
■
Schedule of Expenditures of Federal Awards
■
Year Ended June 30, 2014
1
Federal
Pass-Through/
CFDA
Identification
Federal
Federal Agency/Grant Name
Number
Number
Expenditures
U.S. Deoartment of Aancutiure:
Direct Program:
Wildlife Habitat Incentive Program
10.914
WHIP 7291045B208
$ 750
Total U.S. Department of Agriculture
750
U.S. Department of Housing and Urban Development:
Direct Program:
■
Community Development Block Grant
14.218
B-13-MC-06-0576
$ 979,010
Passed through the State of California:
■
HOME Investment Partnerships Program
14.239
11-HOME-7669
4,084
Total U.S. Department of Housing
■
and Urban Development
983,094
■
U.S. Department of Justice:
Direct Program:
■
Justice Assistance Grant Program - 2011
16.738
2011-DJ-BX-2744
$ 11,264
Justice Assistance Grant Program - 2012
16.738
2012-DJ-BX-0827
8,222
■
Total Justice Assistance Grant Program
19,486
Passed through the County of Los Angeles:
■
Equitable Sharing Program
16.922
CAEQ01940
125
■
Total U.S. Department of Justice
19,611
U.S. Department of Labor:
■
Passed through Antelope Valley Workforce Development
Consortium:
.
Workforce Investment Act - Adult Program'
17.258
ADWO91001
306,566
Workforce Investment Act- Dislocated Workers'
17.278
ADW091001
144,981
■
Total Workforce Investment Act Cluster
451,547
Total U.S. Department of Labor
451,547
■
U.S. Department of Transportation:
■
Passed through the State of California, Transportation Department:
Highway Planning and Construction`
20.205
BHLO-5450(066)
145,353
Highway Planning and Construction'
20.205
BHLS-5450(073)
(11,131)
■
Highway Planning and Construction'
20.205
BHLS-5450(080)
41,256
Highway Planning and Construction`
20.205
BHLS-5450(082)
17,264
■
Highway Planning and Construction'
20.205
CML-5450(083)
329
Highway Planning and Constriction"
20.205
HSIPL-5450(079)
83,798
■
Highway Planning and Construction'
20.205
HSIPL-5450(081)
37,693
Highway Planning and Construction'
20.205
RPSTPLE-5450(059)
1,080,751
■
Highway Planning and Construction'
20.205
SRTSL-5450(075)
279,479
Highway Planning and Construction`
20.205
STPL-5450(068)
662,287
■
Highway Planning and Construction'
20.205
STPL-5450(074)
60,502
Highway Planning and Construction'
20.205
STPL-5450(078)
18,271
■
Highway Planning and Construction'
20.205
TCSPL-5450(072)
8,087
Total Highway Planning and Construction Program
2,423,939
(Continued)
1
City of Santa Clarita, California
Schedule of Expenditures of Federal Awards (Continued)
Year Ended June 30, 2014
Major Program
See Notes to Schedule of Expenditures of Federal Awards.
2
Federal
Pass -Through/
CFDA
Identification
Federal
Federal Agency/Grant Name
Number
Number
Expenditures
U.S. Department of Transportation (Continued):
Direct Program:
Federal Transit Formula Grant"
20.500
CA -04-0246-00
$ 246,737
Federal Transit Formula Grant`
20.507
CA -90-Y276-01
2,632,356
Federal Transit Formula Grant'
20.507
CA -90-Y719-00
4,044,578
Federal Transit Formula Grant*
20.507
CA -90-Y851-01
805,000
Federal Transit Formula Grant'
20.507
CA -95-X137-00
2,373,954
ARRA - Federal Transit Formula Grant*
20.507
CA -96-X071-01
269,448
Total Federal Transit Cluster
10,372,073
Passed through the State of California,
Office of Traffic Safety:
State and Community Highway Safety
20.600
SC13388
36,817
State and Community Highway Safety
20.600
PT1348
13,940
Total State and Community Highway Safety Program
50,757
Total U.S. Department of Transportation
12,846,769
U.S. Department of Homeland Security:
Direct Program:
Pre -Disaster Mitigation'
97.047
PDM 11 -PJ21 2011-0002
599,612
Pre -Disaster Mitigation"
97.047
LPDM-PJ-09-CA-2010-002
(22,500)
Total Pre -Disaster Mitigation Program
577,112
Total U.S. Department of Homeland Security
577,112
Total Expenditures of Federal Awards
$ 14,878,883
Major Program
See Notes to Schedule of Expenditures of Federal Awards.
2
in
YM
City of Santa Clarita, California
1 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, 2014. The
Schedule includes federal awards received directly from federal agencies, as well as federal awards
passed through other governmental 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
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. Negative amounts shown on the Schedule represent adjustments or credits made in
■ the normal course of business to amounts reported as expenditures in prior years. Pass-through entity
identifying numbers are presented where available.
Note 3. Subrecipients
Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients
■ as follows:
r Amount
Provided to
' CFDA Program Name Grant Identifying Number Subrecipients
. 14.218 Community Development Block Grant B -13 -MC -06-0576 $ 302,089
3
McGladrey LLP
0 McGladrey
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
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita, California
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, 2014, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements, and
have issued our report thereon dated December 22, 2014.
r 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 deficiency described in the Schedule of Findings and Questioned
Costs as item 2014-001 to be a material weakness.
r
4
■ Member of the RSM I ntemanonal network of Independent accounting taa and consulting firms.
a
0
a 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 the Finding
The City's response to the finding identified in our audit is described in the accompanying Schedule of
Findings and Questioned Costs. The City's response was not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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 City'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 City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Irvine, CA
December 22, 2014
1
5
McGladrey LLP
McGladrey
Report on Compliance for Each Major Federal Program; Report
on Internal Control Over Compliance; and Report on the Schedule of
Expenditures of Federal Awards Required by OMB Circular A-133
Independent Auditor's Report
To the Honorable Mayor and Members of the City Council
of the City of Santa Clarita, California
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 each of the City's major federal programs for the year ended June 30, 2014. The City's
major federal programs are 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 each of the City's major federal programs
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 each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each 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 each of its major federal programs for the
year ended June 30, 2014.
Member of the RSMinternational network of Independerrt aaounanq tax and oonsuking firms.
A
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 each major federal program to determine the
. auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each 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
1 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
t, 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 the 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, 2014, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements. We issued our report thereon dated December 22, 2014, which contained
unmodified opinions on those financial statements. 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.
■ �L!.�7,G / L G�
■ Irvine, CA
December 22, 2014
7
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2014
I. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified not considered to
be material weaknesses?
• Noncompliance material to financial statements
noted?
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
X Yes No
Yes X None reported
Yes X No
Yes X No
Yes X None reported
Type of auditor's report issued on compliance for major federal 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 or Cluster
17.258/ 17.278 Workforce Investment Act Cluster
20.205 Highway Planning and Construction
20.500/ 20.507 Federal Transit Formula Cluster
97.047 Pre -Disaster Mitigation
Dollar threshold used to distinguish between Type A and Type B programs: $446,367
Auditee qualified as low-risk auditee? Yes X No
9
City of Santa Clarita, California
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2014
II. Financial Statement Findings
Material Weakness
Finding Number: 2014-001 — Capital Asset Adjustments
Criteria: Procedures should be in place to detect or prevent material misstatements of capital assets,
including, but not limited to, communication with other City departments for effective sharing of
information and independent review of capital asset detailed listings.
Condition: There were several matters noted related to the City's capital assets, which, in
combination, constitute a material weakness. They include:
• A restatement to the net position of the governmental activities as of June 30, 2013 totaling
$8,176,907 for the overstatement of capital assets duplicated in between fiscal years 2006
and 2007.
s
■
• A restatement to the net position of the governmental activities as of June 30, 2013 totaling
$7,461,940 for the net understatement of capital assets as the result of storm drain
S
infrastructure contributed to the County of Los Angeles but not disposed at the time of
contribution, and to record storm drain infrastructure that was not identified during the
r
implementation of Governmental Accounting Standards Board Statement No. 34.
■
• A restatement to the net position of the governmental activities as of June 30, 2013 totaling
$48,469,559 for the understatement of capital assets that were annexed by the City for
capital assets previously reported by the County of Los Angeles between fiscal years 1991
and 2013, but not recorded at the date of the exchange.
Cause: These issues were systematic, as the decentralization of the City's departments did not allow
for effective communication between management to identify accounting events and transactions that
impacted the reporting of capital assets. In addition, the internal controls implemented by management
failed to detect errors in the financial reporting of capital assets.
■
Recommendation: We recommend implementing internal control policies and procedures that will
provide reasonable assurance that all capital asset transactions, however acquired or retired, are
properly reported in the financial statements.
Management's Response: As a result of the due diligence of City staff in reviewing its fixed asset
policy, each of the following items was discovered and action was taken to make the corrections. The
City brought each item to the attention of its auditors, McGladrey LLP. City staff has implemented
internal controls to ensure capital assets are recorded accurately.
• Finance staff began using the fixed asset module in the City's financial system during fiscal
year 2013-2014. During the update process, duplicate entries were discovered for donated
infrastructure. The City's Public Works department provides Finance with copies of bond
exoneration letters that are issued to the developers. The entries occurred when partial
exonerations were recorded and then duplicated when a final exoneration letter was issued in
a subsequent year. Finance staff will confirm with Public Works staff that exonerations are
complete and will only capitalize those assets.
s
■
■
■
City of Santa Clarita, California
r Schedule of Findings and Questioned Costs
r For the Fiscal Year Ended June 30, 2014
• Finance staff has had extensive discussions with City engineers regarding the process of
storm drain acceptance from developers. As stated above, Finance staff will continue to
receive copies of the bond exoneration letters that relate to storm drains, but will also receive
a copy of the letter of acceptance from the County Flood Control District. Public works will not
■ release a developer's storm drain bond until the County has accepted the storm drain. In the
case of a bond exoneration letter for a storm drain that is not accompanied by the County's
acceptance letter, Finance staff will communicate directly with Public Works to inquire if the
storm drain will be transferred to the County. In the event the storm drain is not up to the
■ County's standards for transfer, then the storm drain will be capitalized in accordance with
the City's capital asset policy.
• The City discovered that capital assets had been acquired with annexations from Los
■ Angeles County in fiscal years 2012 and 2013. Various divisions in the City such as Public
Works and Parks Planning did inventory assets that were received in the annexations.
Annexed streets were added to the City's pavement management inventory. The divisions,
however, did not receive any financial information regarding the assets from the County.
■ In order to ensure capital assets are recorded for future annexations, the City's Planning
division will provide Finance with copies of all certificates of completion. Finance staff will also
review Council agenda reports for any future annexations and communicate directly with the
Planning division staff. Finance staff will also request an inventory of annexed assets from
the City divisions that will be maintaining those assets. Future annexation procedures will
incorporate a request to the County to provide cost and depreciation information for capital
assets to ensure an accurate inventory is recorded by the City.
III. Federal Awards Findings and Questioned Costs
No matters were reported.
10
■
■
■
City of Santa Clarita, California
Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2014
1. Financial Statement Findings
Material Weaknesses
■
Corrective Action or
■
Number Comment
Status Other Explanation
2013-001 There was a proposed audit adjustment
Corrected
identified during our audit relating to an
allowance for the loans receivable from the
Successor Agency.
■
2013-002 There were proposed audit adjustments
Corrected
■
identified during our audit related to capital
■
assets. These adjustments included
restatements of net position of governmental
■
and fiduciary activities for the removal of
capital assets inconsistent with the City's
■
capitalization policy or not properly
transferred upon the dissolution of the former
redevelopment agency.
2013-003 There was a proposed audit adjustment
Corrected
identified during our audit relating to the
recognition of revenue in accordance with
GASB Statement No. 33, Accounting and
Financial Reporting for Nonexchange
■
Transactions, for certain in -lieu fees and
developer contributions.
■
2013-004 There was a proposed audit adjustment
Corrected
■
identified during our audit relating to the
recognition of revenues received with an
availability period for governmental funds.
■
In addition, the City had not adopted an
availability period for revenue recognition in
governmental funds prior to June 30, 2013.
11. Federal Awards Findings and Questioned Costs
No matters were reported for the fiscal year ended June 30, 2013.
11
■
■
Santa Clarita Open Space
Preservation District
Financial Report
Year Ended June 30, 2014
Contents
Independent Auditor's Report
1-2
Basic Financial Statements
Government -wide financial statements:
Statement of net position
3
Statement of activities
4
Fund financial statements:
Governmental fund statements:
Balance sheet
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
9-16
Required Supplementary Information (Unaudited)
Budgetary comparison schedule—Santa Clarita Open Space Preservation District 17
Note to required supplementary information 18
■ McGladrey LLP
McGladrey
■
■
M Independent Auditor's Report
M
To the Honorable Mayor and Members of the City Council
M of the City of Santa Clarita
Santa Clarita, CA
M 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, 2014 and the related notes to the financial statements, which collectively
comprise the District's basic financial statements as listed in the table of contents.
M Management's Responsibility for the Financial Statements
M 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
M 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
M 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
M 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
M 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 District'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 District'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
M our audit opinion.
M Opinions
■ 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, 2014 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.
M
M 1
Member of Me RSM lntematlonal network of Independent aaountln% w and consu Rhg firms.
r,
■ Emphasis of a Matter
■ As discussed in Note 1 to the financial statements, the financial statements present only the District and
do not purport to, and do not, present fairly the financial position of the City as of June 30, 2014, and the
■ changes in financial position 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 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 December 22, 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.
■
■ %�iC"'�G�ey G �P
■ Irvine, CA
December 22, 2014
■
■
Basic Financial Statements
■
■
■
Government -Wide Financial Statements
Santa Clarita Open Space Preservation District
Statement of Net Position
June 30, 2014
Assets
Governmental
Activities
Current Assets
Pooled cash and investments
$ 5,685,237
Receivables:
1,322,004
Accounts
6,497
Interest
12,813
Special assessments
25,790
Total current assets
5,730,337
Noncurrent Assets
Restricted assets:
Cash and investments
4,695,421
Cash and investments with fiscal agents
1,322,004
Capital assets:
Nondepreciable assets
14,133,952
Depreciable assets, net
75,644
Capital assets, net
14,209,596
Total noncurrent assets
20,227,021
Total assets
25,957,358
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 38,424
Interest payable 174,601
Certificates of participation, current portion 120,000
Total current liabilities 333,025
Noncurrent Liabilities
Certificates of participation 15,171,374
Total noncurrent liabilities 15,171,374
Total liabilities 15,504,399
Net Position
Net Investment in Capital Assets 4,935,647
Restricted for Open Space Preservation 5,517,312
Total net position $ 10,452,959
See Notes to Financial Statements.
Itl
■
■
■
■
■
■
Santa Clarita Open Space Preservation District
Statement of Activities
For the Year Ended June 30, 2014
General Revenues
Investment income 50,624
Transfers from City of Santa Clarita 29,905
Total general revenues and transfers 80,529
Change in net position 1,167,285
Net position, beginning of year 9,285,674
Net position, end of year $ 10,452,959
See Notes to Financial Statements.
e
Program
Net Revenue
Revenue
(Expense)and
Charges for
Changes in
Functions/Programs
Expenses
Services
Net Position
Governmental Activities
General government
$ 353,588
$ 2,153,520
$ 1,799,932
Interest and fiscal charges
713,176
-
(713,176)
Total governmental activities
$ 1,066,764
$ 2,153,520
1,086,756
General Revenues
Investment income 50,624
Transfers from City of Santa Clarita 29,905
Total general revenues and transfers 80,529
Change in net position 1,167,285
Net position, beginning of year 9,285,674
Net position, end of year $ 10,452,959
See Notes to Financial Statements.
e
■
■
■
Fund Financial Statements
■
■
■
Santa Clarita Open Space Preservation District
■
Balance Sheet
■
Governmental Funds
June 30, 2014
■
General
■
Assets
Fund
■
Pooled Cash and Investments
$
5,685,237
■
Receivables
Accounts
6,497
■
Interest
12,813
Special assessments
25,790
■
Restricted Assets
Cash and investments
4,695,421
■
Cash and investments with fiscal agents
1,322,004
Total assets
$
11,7471762
■
■
Liabilities and Fund Balance
.
Liabilities
Accounts payable and accrued liabilities
$
38,424
■
Total liabilities
38,424
■
Fund Balance
Restricted for open space preservation
10,387,334
■
Restricted for debt service
1,322,004
■
Total fund balance
11,709,338
Total liabilities and fund balance
$
11,747,762
■
See Notes to Financial Statements.
■
■
■
■
■
■
■
■
■
■
5
■
■
■
■
■
■
■
Santa Clarita Open Space Preservation District
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
June 30, 2014
■
Fund balance of governmental funds
$ 11,709,338
■
■
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
14,133,952
Depreciable assets, net of accumulated depreciation
75,644
■
■
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
(15,340,000)
■
Less: Unamortized net bond discount
48,626
■
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.
(174,601)
■
Net position of governmental activities
$ 10,452,959
■
See Notes to Financial Statements.
■
■
■
■
■
■
■
Ll
■
■
Santa Clarita Open Space Preservation District
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
For the Year Ended June 30, 2014
General
Fund
Revenues:
Special assessments $ 2,143,520
Investment income 50,624
Other revenue 10,000
Total revenues 2,204,144
Expenditures:
Current:
Open space preservation
351,458
Capital outlay
34,000
Debt service:
Principal
90,000
Interest and fiscal charges
708,184
Total expenditures
1,183,642
Excess of revenues over expenditures
1,020,502
Other financing sources (uses)
Transfers from other funds of the City of Santa Clarita 40,482
Transfers to other funds of the City of Santa Clarita (10,577)
Total other financing sources (uses) 29,905
Net change in fund balance 1,050,407
Fund balance, beginning of year 10,658,931
Fund balance, end of year $ 11,709,338
See Notes to Financial Statements.
7
■
■
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, 2014
Net change in fund balance—total governmental funds $ 1,050,407
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 34,000
Depreciation expense (2,130)
Repayment of bond principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net position. 90,000
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 1,484
Amortization of bond premium (6,476)
Change in net position of governmental activities $ 1,167,285
See Notes to Financial Statements.
■
■
■
E
■
■
■ 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 balance.
■ 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.
■
■ g
■
■
■
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 unexpended bond proceeds of the District's bonds are classified as restricted assets because their
use is completely restricted to the purpose for which the bonds were originally issued. The District's
S investments held by 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: The District reports capital assets that are titled by the City, consisting of land and site
improvements that were acquired or constructed with capital improvement debt that is pledged by the
District's special assessment revenue. The District is responsible for the management and maintenance
of the capital assets.
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 assessment taxes are attached as enforceable liens on real property on
July 1, the beginning of the fiscal year, and are due in two installments on November 1 and February 1;
■ however, no penalties or interest are assessed until the December 10 and April 10, respectively. These
taxes are determined annually based on property values, subject to limits based on Proposition 13, as of
. January 1 of the levy year, which is prior to the end of the previous fiscal year. The County of Los
Angeles bills and collects these taxes for the District and are remitted on a monthly basis.
10
■
■
■ Santa Clarita Open Space Preservation District
■ Notes to Financial Statements
■
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
■ 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.
■
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: Items that cannot be spent because they are not in spendable form, such as prepaid
items and inventories; 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 the District'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 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.
■
■
■
■ 11
■
■
■
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
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.
Note 2. Cash and Investments
The District's cash and investments consisted of the following at June 30, 2014:
Pooled cash and investments $ 5,685,237
Restricted:
Cash and investments 4,695,421
Cash and investments with fiscal agent 1,322,004
Total $ 11,702,662
■ Pooled cash and investments $ 5,685,237
Money Market Funds 6,017,425
■ $ 11,702,662
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.
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
■ District will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City treasury is responsible for the custodial credit risk of the
. restricted cash and investments, and is reported in the annual report of the City.
12
■
■
■ Santa Clarita Open Space Preservation District
■ Notes to Financial Statements
■
Note 2. Cash and Investments (Continued)
■ 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.
Maximum
■ Percentage or Maximum
■ Maximum Amount of Investment in
Authorized Investment Type Maturity Portfolio* One Issuer
U.S. Treasury obligations
U.S. government-sponsored enterprise securities
Money market accounts
Local agency investment fund (LAIF)
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.
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, 2014, the District had the following investment maturities:
Investment
Maturity
(In Years)
Investment Type Fair Value Less Than 1
Restricted investments:
Money Market Funds $ 4,695,421 $ 4,695,421
Restricted investments with fiscal agent:
Money Market Funds
13
1,322,004 1,322,004
■
■
■ 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:
■
Investment
■ Minimum Rating
■ Investment Type Rating Fair Value Unrated
Restricted investments:
■ Money Market Funds None $ 4,695,421 $ 4,695,421
■ Restricted Investments with fiscal agent:
Money Market Funds None 1,322,004 1,322,004
■
Custodial credit risk: Custodial credit risk is the risk that, in the event of the failure of the counterparty,
the District will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City treasury is responsible for the custodial credit risk of the
■ restricted cash and investments, and is reported in the annual report of the City.
■ Note 3. Capital Assets
■ At June 30, 2014, the District's capital assets consisted of the following:
■ Balance Balance
June 30, 2013 Additions Deletions June 30, 2014
■ Capital assets, not being depreciated:
Land $ 14,133,952 $ - $ $ 14,133,952
■ Total capital assets, not being depreciated 14,133,952 - - 14,133,952
Capital assets, being depreciated:
■ Site improvements 47,580 34,000 - 81,580
Total capital assets, being depreciated 47,580 34,000 - 81,580
■
Less accumulated depreciation:
■ Site improvements (3,806) (2,130) (5,936)
Total accumulated depreciation (3,806) (2,130) - (5,936)
■ Total depreciable assets, net 43,774 31,870 - 75,644
Total capital assets, net $ 14,177,726 $ 31,870 $ - $ 14,209,596
■
■
■
■
14
n
■
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 4. Long -Term Debt
The District had the following long-term liabilities at June 30, 2014:
Classification
Balance Balance Due Within Due In More
. June 30, 2013 Additions Deletions June 30, 2014 One Year Than One Year
Governmental Activities
■ Certificates of Participation:
Series 2007 $ 15,430,000 $ - $ (90,000) $ 15,340,000 $ 120,000 $ 15,220,000
. Less discount (55,102) - 6,476 (48,626) (48,626)
Total Certificates
of Participation $ 15,374,898 $ - $ (83,524) $ 15,291,374 $ 120,000 $ 15,171,374
On December 12, 2007, the City, for the benefit of the District, issued $15,525,000 in Certificates of
t 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 secured by a pledge of
special assessment revenues received by the City from the operation of the District. Additionally, there is
a backed -up pledge of lease payments to be made by the City to the Santa Clarita Public Financing
Authority for the use and occupancy of the Aquatic Center and Sports Complex.
The Certificates were issued at a discount of $80,479, which will be amortized and recognized as interest
expense over the life of the debt on a straight-line basis, 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 City has pledged the future special assessment revenues received from the operation of the District
to repay the Certificates. The Certificates are payable solely from all or a portion of the annual special
. assessment collected for the District. The total principal of $15,340,000 and interest of $11,505,452
remain to be paid on the Certificates as of June 30, 2014. For the current year, principal and interest paid
. on the Certificates was $798,051 and total special assessment revenues were $2,143,520. The
outstanding balance of the Certificates was $15,340,000 at June 30, 2014.
0
a
15
r]
■
■
■
■
0
Santa Clarita Open Space Preservation District
Notes to Financial Statements
Note 4. Long -Term Debt (Continued)
Debt service for the Certificates is as follows:
Years Ending June 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2038
Total
Principal Interest Total
$ 120,000
$ 703,851
$ 823,851
150,000
698,451
848,451
185,000
691,752
876,752
220,000
683,651
903,651
255,000
674,151
929,151
1,855,000
3,170,165
5,025,165
3,030,000
2,633,712
5,663,712
4,535,000
1,755,957
6,290,957
4,990,000
493,762
5,483,762
$ 15,340,000
$ 11,505,452
$ 26,845,452
16
[1
■
Required Supplementary Information (Unaudited)
■
■
Expenditures:
Current:
Open space preservation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing uses
433,890 455,062 351,458 103,604
- 2,752,630 34,000 2,718,630
90,000 90,000 90,000 -
708,070 708,070 708,184 (114)
1,231,960 4,005,762 1,183,642 2,822,120
892,105 (1,881,697) 1,020,502 2,902,199
Transfers from other funds of the City of Santa Clarita
- 40,482
40,482 -
Transfers to other funds of the City of Santa Clarita
(10,577) (10,577)
(10,577) -
Total other financing uses
Santa Clarita Open Space Preservation District
29,905
Net change in fund balance $
881,528 $ (1,851,792)
1,050,407 2,902,199
Budgetary Comparison Schedule
For the Year Ended June 30, 2014
■
Variance From
Final Budget
Original
Final
Positive
.
Budget
Budget
Actual
(Negative)
Revenues:
■
Special assessments
$ 2,098,000
$ 2,098,000
$ 2,143,520
$ 45,520
Investment income
26,065
26,065
50,624
24,559
.
Other revenue
-
-
10,000
10,000
Total revenues
2,124,065
2,124,065
2,204,144
80,079
Expenditures:
Current:
Open space preservation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing uses
433,890 455,062 351,458 103,604
- 2,752,630 34,000 2,718,630
90,000 90,000 90,000 -
708,070 708,070 708,184 (114)
1,231,960 4,005,762 1,183,642 2,822,120
892,105 (1,881,697) 1,020,502 2,902,199
Transfers from other funds of the City of Santa Clarita
- 40,482
40,482 -
Transfers to other funds of the City of Santa Clarita
(10,577) (10,577)
(10,577) -
Total other financing uses
(10,577) 29,905
29,905
Net change in fund balance $
881,528 $ (1,851,792)
1,050,407 2,902,199
Fund balance, beginning of year
Fund balance, end of year
See Note to Required Supplementary Information.
17
10,658,931
$ 11,709,338
■
■
■ 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, 2014. As of June 30, 2014, there are no outstanding
encumbrances.
■
■
■
IM
■
■
■
■
■
City of Santa Clarita
Air Quality Improvement Fund
Financial and Compliance Report
Year Ended June 30, 2014
■
Contents
Independent Auditor's Report 1-2
Basic Financial Statements
Balance sheet 3
Statement of revenues, expenditures, and changes in fund balance 4
Notes to financial statements 5-6
Required Supplementary Information
Budgetary information
7
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; Independent Auditor's Report 8-9
■ 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 Air Quality Improvement Special Revenue
■ Fund (the Fund) of the City of Santa Clarita (the City) as of and for the year ended June 30, 2014, 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 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, 2014, 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.
■
■
■ 1
■ Member of the RSM International network of mdependere amounang, taa and consuMng 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, 2014, and the
■ changes in financial position 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
■ 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 December 22,
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 in considering the Fund's internal control over financial
reporting and compliance.
■
■ Irvine, CA
December 22, 2014
■
■
■
Basic Financial Statements
City of Santa Clarita Air Quality Improvement Fund
Balance Sheet
June 30, 2014
Assets
Pooled Cash and Investments
Interest Receivable
Due From South Coast Air Quality Management District
Total assets
$ 201,531
457
66,027
$ 268,015
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ 199
Total liabilities 199
Fund Balance
Restricted 267,816
Total fund balance 267,816
Total liabilities and fund balance $ 268,015
See Notes to Financial Statements.
M
City of Santa Clarita Air Quality Improvement Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance
For the Year Ended June 30, 2014
Revenues
Assembly Bill 2766 revenues $ 255,577
Investment loss, net 853
Total revenues 256,430
Expenditures
Administrative 6,831
Air quality improvement program 61,116
Total expenditures 67,947
Net change in fund balances 188,483
Fund balances, beginning of year 79,333
Fund balances, end of year $ 267,816
See Notes to Financial Statements.
4
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 financial statements were prepared from only the accounts of the Fund and, therefore, do not
present the financial position or results of operation of the City.
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
S (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.
The Fund recognizes assets of non-exchange transactions in the period when the underlying transaction
occurs when all eligibility requirements are met. Non-exchange transactions occur when one government
. provides (or receives) value to (from) another party without receiving (or giving) equal or nearly equal
value in return. The AB 2766 revenue is an example of a non-exchange transaction.
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.
F7
5
i
■
■
■ City of Santa Clarita Air Quality Improvement Fund
■ Notes to Financial Statements
■ Note 1. Summary of Significant Accounting Policies (Continued)
■ Pooled 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.
■ 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. Pooled Cash and Investments
■ The Fund's pooled cash and investments at June 30, 2014 is $201,531.
■ 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 City's 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. Any identified amounts as
a result of these audits would be required to be remitted back to the SCAQMD or having future
■ remittances from the SCAQMD deducted accordingly.
■
■
■
■
■
■
■
■
■
■
■
II
Required Supplementary Information
■
■
Il
■
■
■
■ 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, 2014:
■ City of Santa Clarita Air Quality Improvement Fund
■ Required Supplementary Information
For the Year Ended June 30, 2014
Variance With
Final Budget
■ Actual Positive
■ Original Final Amounts (Negative)
Revenues
■ Assembly Bill 2766 revenues $ 206,367 $ 206,367 $ 255,577 $ 49,210
Investment income 458 458 853 395
■ Total revenues 206,825 206,825 256,430 49,605
■ Expenditures
Administrative 9,870 11,496 6,831 4,665
■ Air quality improvement program 41,500 72,160 61,116 11,044
Total expenditures 51,370 83,656 67,947 15,709
■ Excess (deficiency)
. of revenues over
(under) expenditures 155,455 123,169 188,483 65,314
■ Other Financing Uses
Transfers to City of Santa Clarita (155,455) - - -
Total other financing
■ uses (155,455) - - -
Net change in fund
■ balances $ $ 123,169 188,483 $ 65,314
■ Fund balances, beginning of year 79,333
■ Fund balances, end of year $ 267,816
■
■
■
■ 7
■
. McGladrary LLP
McGladrey
■
. 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
Independent Auditor's Report
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
i 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 (the Fund) of the City of Santa Clarita (the City) as of and for the
year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise
' the Fund's basic financial statements, and have issued our report thereon dated December 22, 2014.
S 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 Fund'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 our 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.
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
t are required to be reported under Government Auditing Standards.
S
g
Member of the PSM lmemattonal network of Independent accounting, tax and conmhi g firms.
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 Fund'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 Fund's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
/111C-111-1
11 C 111.1 y G e_�
Irvine, CA
December 22. 2014
I
0