b. AGENCY agrees to fully defend, indemnify, and save harmless CALTRANS and all of its officers and employees from any and all claims, lawsuits, or legal actions, including reasonable attorneys’ fees and legal costs, relating to intellectual property claims arising from or related to the Project and/or any work procured under this RGA, including but not limited to claims based on (1) U.S. federal or state trademark infringement laws, (2) patent infringement laws (3) 17 U.S.C. §§ 101-810 (the Copyright Act of 1976, as modified), (4) 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”), (5) 17 U.S.C. § 113, (6) California Civil Code § 987 (the California Art Preservation Act), California Civil Code §989, or (7) any other rights arising under U.S. federal or state laws or under the laws of any other country that conveys rights and protections of the same nature as those conveyed under 17 U.S.C. §106A(a) and California Civil Code §987, including intellectual property claims arising from or related to breach of contract, inverse condemnation, conversion, and/or taking of property.
22. Nondiscrimination Clause (2 CCR 11105 Clause b)
a. During the performance of this RGA, the AGENCY, its contractors, its subrecipients, and its subcontractors shall not deny the contract's benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. AGENCY shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. b. AGENCY shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code Sections 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Sections 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code Sections 11135-11139.5), and the regulations or standards adopted by CALTRANS to implement such article. c. AGENCY shall permit access by representatives of the Department of Fair Employment and Housing and CALTRANS upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours' notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or CALTRANS shall require to ascertain compliance with this clause.
d. AGENCY and its contractors, its sub-recipients, and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
e. AGENCY shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under this RGA.
23. Retention of Records/Audits
a. AGENCY, its contractors, subcontractors, and sub-recipients, agree to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
b. AGENCY, its contractors, subcontractors, and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of AGENCY, its contractors, subcontractors and sub-recipients connected with Project performance under this RGA shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CALTRANS, the California State Auditor, and auditors representing the federal government. Copies thereof will be furnished by AGENCY, its contractors, its subcontractors, and sub-recipients upon receipt of any request made by CALTRANS or its agents. In conducting an audit of the costs and match credits claimed under this RGA, CALTRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY’s external and internal auditors may be relied upon and used by CALTRANS when planning and conducting additional audits. c. For the purpose of determining compliance with applicable State and AGENCY law in connection with the performance of AGENCY’s contracts with third parties pursuant to Government Code Section 8546.7, AGENCY, AGENCY’s sub-recipients, contractors, subcontractors, and CALTRANS, shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire Project period and for three (3) years from the date of final payment to AGENCY under this RGA. CALTRANS, the California State Auditor, or any duly authorized representative of CALTRANS or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to a Project for audits, examinations, excerpts, and transactions, and AGENCY shall furnish copies thereof if requested. d. AGENCY, its subrecipients, contractors, and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by CALTRANS, for the purpose of any investigation to ascertain compliance with this RGA.
e. Additionally, all grants may be subject to a pre-award audit prior to execution of this RGA to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable and allocable costs.
f. Any contract with a contractor, subcontractor, or sub-recipient entered into as a result of this RGA shall contain all the provisions of this article.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
24. Adjudication of Facts in Disputes
a. Any dispute concerning a question of fact arising under this RGA that is not disposed of by agreement shall be decided by the CALTRANS Contract Officer, who may consider any written or verbal evidence submitted by AGENCY. The CALTRANS Contract Officer shall issue a written decision within 30 days of receipt of the dispute. If AGENCY rejects the decision of the CALTRANS Contract Officer, AGENCY can pursue any and all remedies authorized by law. Neither party waives any rights to pursue remedies authorized by law.
b. Neither the pendency of a dispute nor its consideration by CALTRANS Contract Officer will excuse AGENCY from full and timely performance in accordance with the terms of this RGA.
25. INTENTIONALLY DELETED
26. Third-Party Contracts
a. AGENCY shall perform the work contemplated with resources available within its own organization and no portion of the work shall be contracted to a third party without prior written authorization by the CALTRANS Contract Manager unless expressly included (subrecipient identified) in Attachment III as Project Work. b. All State-government-funded procurements must be conducted using a fair and competitive procurement process. AGENCY may use its own procurement procedures as long as the procedures comply with the local AGENCY’s laws, rules, and ordinances governing procurement and all applicable provisions of State law, including, without limitation, the requirement that the AGENCY endeavor to obtain at least three (3) competitive bids for solicitation of goods, services, and consulting services (see Part 2, Chapter 2, Articles 3 and 4 of the Public Contract Code); a qualifications-based solicitation process, for which statements of qualifications are obtained from at least three (3) qualified firms for architecture and engineering services (see Title 1, Division 5, Chapter 10 of the Government Code); and, the applicable provisions of the State Contracting Manual (SCM), Chapter 5, which are not inconsistent with this Item 23, Third Party Contracts. The SCM can be found and the following link: https://www.dgs.ca.gov/OLS/Resources/Page- Content/Office-of-Legal-Services-Resources-List-Folder/State-Contracting. c. Any contract entered into as a result of this RGA shall contain all the provisions stipulated in this RGA to be applicable to AGENCY’s sub-recipients, contractors, and subcontractors.
Copies of all agreements with sub-recipients, contractors, and subcontractors, must be submitted to the CALTRANS Contract Manager.
d. CALTRANS does not have a contractual relationship with the AGENCY’s subrecipients, contractors, or subcontractors, and the AGENCY shall be fully responsible for all work performed by its subrecipients, contractors, or subcontractors. e. Prior authorization in writing by the CALTRANS Contract Manager shall be required before AGENCY enters into any non-budgeted sub-agreement. AGENCY shall provide an evaluation of the necessity or desirability of incurring such costs. AGENCY shall retain all receipts for such purchases or services and shall submit them with invoices per Section III– Payment and Invoicing, Item 14(e)(4), above.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
f. Any contract entered into by AGENCY as a result of this RGA shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subrecipients, contractors, and subcontractors, will be allowable as Project costs only after those costs are incurred and paid for by the subrecipients, contractors, and subcontractors. Travel expenses and per diem rates for subcontractors shall be reimbursed pursuant to Section III–Payment and Invoicing, Item 14c, above.
27. Drug-Free Workplace Certification
By signing this RGA, AGENCY hereby certifies under penalty of perjury under the laws of California that AGENCY will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code Sections 8350 et seq.) and will provide a Drug-Free workplace by doing all of the following:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(a)(2) to inform employees about all of the following:
1) The dangers of drug abuse in the workplace.
2) The person's or organization's policy of maintaining a Drug-Free workplace. 3) Any available counseling, rehabilitation, and employee assistance programs. 4) Penalties that may be imposed upon employees for drug abuse violations. c. Provide, as required by Government Code Section 8355(a)(3), that every employee who works on the proposed contract or grant:
1) Will receive a copy of the company's Drug-Free policy statement. 2) Will agree to abide by the terms of the company's statement as a condition of employment on the contract or grant.
d. Failure to comply with these requirements may result in suspension of payments under this RGA or termination of this RGA or both, and AGENCY may be ineligible for the award of any future state contracts if CALTRANS determines that any of the following has occurred: (1) AGENCY has made a false certification or, (2) AGENCY violates the certification by failing to carry out the requirements as noted above.
28. Relationship of Parties
It is expressly understood that this agreement is executed by and between two (2) independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party.
29. State-Owned Data
a. AGENCY agrees to comply with the following requirements to ensure the preservation, security, and integrity of State-owned data on portable computing devices and portable electronic storage media:
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
1) Encrypt all State-owned data stored on portable computing devices and portable electronic storage media using government-certified Advanced Encryption Standard (AES) cipher algorithm with a 256-bit or 128-bit encryption key to protect CALTRANS data stored on every sector of a hard drive, including temp files, cached data, hibernation files, and even unused disk space.
2) Data encryption shall use cryptographic technology that has been tested and approved against exacting standards, such as FIPS 140-2 Security Requirements for Cryptographic Modules.
3) Encrypt, as described above, all State-owned data transmitted from one computing device or storage medium to another.
4) Maintain confidentiality of all State-owned data by limiting data sharing to those individuals contracted to provide services on behalf of the State, and limit use of State information assets for State purposes only.
5) Install and maintain current anti-virus software, security patches, and upgrades on all computing devices used during the course of the Agreement. 6) Notify the CALTRANS Contract Manager immediately of any actual or attempted violations of security of State-owned data, including lost or stolen computing devices, files, or portable electronic storage media containing State-owned data. 7) Advise the owner of the State-owned data, the AGENCY Information Security Officer, and the AGENCY Chief Information Officer of vulnerabilities that may present a threat to the security of State-owned data and of specific means of protecting that State-owned data. b. AGENCY agrees to use the State-owned data only for State purposes under this Agreement. c. AGENCY agrees to not transfer State-owned data to any computing system, mobile device, or desktop computer without first establishing the specifications for information integrity and security as established for the original data file(s) (State Administrative Manual (SAM) Section 5335.1).
30. CALTRANS’ Use of “Before” and “After” Project Photographs a. AGENCY acknowledges it provided a “Before” photograph of the Project with the AGENCY’s application for the Clean California Local Grant Program. AGENCY acknowledges and agrees it must provide an “After” photograph of the Project as part of the close out reporting process.
b. AGENCY warrants it is the copyright owner of the “Before” and “After” Project photographs. c. Neither the “Before” nor “After” Project photographs shall include the faces of any individuals.
d. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the “Before” and “After” Project photographs, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. e. When applicable, AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
31. Limited Grant of Rights to CALTRANS for Use of Educational Programming (“educational programming”) Created or Produced for Project and Visual Art Located Outside of State Right-of- Way (“Artwork”) Created or Produced for Project
a. Educational programming:
i. AGENCY shall obtain from any and all copyright owner(s) of educational programming a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the educational programming created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, exhibition catalogues or other similar publication. AGENCY shall obtain any and all other intellectual property rights necessary to make this grant to CALTRANS as described in this RGA.
ii. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the educational programming created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication.
iii. When applicable, AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license or sublicense described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
iv. To the extent any logos, including trademarks or service marks, belonging to third parties and/or the AGENCY are used on educational programming created or produced for Project under this RGA, AGENCY agrees to obtain and grant all necessary rights for CALTRANS to use and allow agents of CALTRANS to use the logos in connection with use of the educational programming for non-commercial purposes or State government purposes. This includes but is not limited to reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education and exhibition catalogues or other similar publication. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required. b. Artwork:
i. AGENCY shall obtain from the artist(s), or any other copyright owner(s) of Artwork, a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of Artwork created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. AGENCY shall obtain any and all other intellectual property rights necessary to make this grant to CALTRANS as described in this City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
RGA.
ii. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of Artwork created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication.
iii. AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license or sublicense described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
32. Government Purpose Rights for Inventions
a. Inventions are any idea, methodologies, design, concept, technique, invention, discovery, improvement or development regardless of patentability made solely by AGENCY or jointly with the AGENCY’s contractor, subcontractor and/or subrecipient during the term of this RGA and in performance of any work under this RGA, provided that either the conception or reduction to practice thereof occurs during the term of this RGA and in performance of work issued under this RGA.
b. CALTRANS will have Government Purpose Rights to any inven tions created as a result of the Project. “Government Purpose Rights” are the unlimited, irrevocable, worldwide, perpetual, royalty-free, non- exclusive rights, and licenses to use, modify, reproduce, perform, release, display, create derivative works from, and disclose any said invention. “Government Purpose Rights” also include the right to release or disclose said invention(s) outside CALTRANS for any State government purpose and to authorize recipients to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the invention(s) for any State government purpose. “Government Purpose Rights” do not include any rights to use, modify, reproduce, perform, release, display, create derivative works from, or disclose the invention(s) for any commercial purpose.
33. Additional Intellectual Property Provisions
a. To the extent any intellectual property is created or produced for Project under this RGA, and not covered in other provisions of this RGA, AGENCY agrees to take reasonable steps to ensure that CALTRANS has the rights necessary to allow for use of the intellectual property in a fashion substantially similar to other rights for non-commercial uses and State government purposes described in this RGA.
b. If additional uses are reasonably determined to be needed by CALTRANS for public outreach purposes, AGENCY will obtain rights and grant CALTRANS and its agents said additional rights for use of the “Before” and “After” Project photos, Artwork created or produced for Project under this RGA, and educational programming created or produced for Project under this RGA. The grant will be an irrevocable, non-exclusive, perpetual, royalty-free, sublicensable, unlimited, worldwide license.
c. When requested to so do by AGENCY, all reproductions and/or copies by CALTRANS of “Before” or “After” Project photographs, educational programming, and Artwork shall contain a credit to the Artist/ Copyright owner(s) and a copyright notice in substantially the following form:
© [Artist/Copyright owner’s name, date of publication]. AGENCY bears sole responsibility to City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
promptly notify CALTRANS, in writing, about instances where such accreditation is requested and provide the Artist/ Copyright owner’s name and date of publication. CALTRANS will make reasonable efforts to affix the copyright notice in a timely manner. d. Required disclaimer language for educational programming and Artwork created or produced for Project under this RGA.
i. Educational programming: AGENCY must place a disclaimer statement in a conspicuous manner on the educational programming created or produced for Project under this RGA a disclaimer that states the content of the educational programming does not reflect the official views or policies of CALTRANS. The educational programming does not constitute a standard, specification, or regulation.
ii. Artwork: AGENCY must place a disclaimer statement in a conspicuous manner on or in close proximately to the Artwork created or produced for Project under this RGA a disclaimer statement that the contents of the artwork do not reflect the official views or policies of CALTRANS.
e. Avoidance of Infringement: In performing work under this RGA, AGENCY and its employees agree to avoid designing or developing any items that infringe one or more patents or other intellectual property rights of any third party. If AGENCY or its employees becomes aware of any such possible infringement in the course of performing any work under this RGA, AGENCY or its employees shall immediately notify CALTRANS in writing. f. Contractors, Subcontractors, and Subrecipients: Through contract with its sub-recipients, contractors, and subcontractors, AGENCY shall affirmatively bind by contract all of its contractors, subcontractors, subrecipients, and service vendors (hereinafter “AGENCY’s Contractor/Subcontractor/Subrecipient”) providing services under this RGA to conform to the provisions of paragraphs 31-33 of this RGA. In performing services under this RGA, AGENCY’s Contractor/Subcontractor/Subrecipient shall agree to avoid designing or developing any items that infringe one (1) or more patents or other intellectual property rights of any third party. If AGENCY’s Contractor/Subcontractor/Subrecipient becomes aware of any such possible infringement in the course of performing any work under this RGA, AGENCY’s Contractor/Subcontractor/Subrecipient shall immediately notify the AGENCY in writing, and AGENCY will then immediately notify CALTRANS in writing.
34. Visual Art Located on California State Right-of-Way AGENCY agrees if Project involves visual art located on California State right-of-way, Project must be submitted and adhere to CALTRANS’ most current Transportation Art Proposal process, policies, guidelines, and requirements. Information regarding CALTRANS’ Transportation Art program can be found at https://dot.ca.gov/programs/design/lap-landscape-architecture-and- community-livability/lap-liv-j-transportation-art. AGENCY bears sole responsibility for ensuring that any Project will be timely submitted through CALTRANS’ Transportation Art Proposal process, approved, and installed prior to any deadlines as required by this RGA. a. AGENCY acknowledges that funds provided by CALTRANS under this RGA shall not be used for maintenance outside of the project time limits as provided in this RGA. b. AGENCY acknowledges that the CALTRANS’ Transportation Art Proposal process requires, among other things, CALTRANS ownership of any tangible visual final artwork, an unlimited, irrevocable copyright assignment to CALTRANS of the final artwork, and waiver of moral rights under California Civil Code § 987 (the California Art Preservation Act) and 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”) of the final artwork.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
c. AGENCY acknowledges that any submittal to the CALTRANS’ Transportation Art Proposal process includes restrictions on the type of work that can be located on California State right-of- way.
35. Assumption of Risk and Indemnification Regarding Exposure to Environmental Health Hazards In addition to, and not a limitation of, Contractor’s indemnification obligations contained elsewhere in this Agreement, Contractor hereby assumes all risks of the consequences of exposure of Contractor’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm, or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, to any and all environmental health hazards, local and otherwise, in connection with the performance of this Agreement. Such hazards include, but are not limited to, bodily injury and/or death resulting in whole or in part from exposure to infectious agents and/or pathogens of any type, kind or origin. Contractor also agrees to take all appropriate safety precautions to prevent any such exposure to Contractor’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement. Contractor also agrees to indemnify and hold harmless CALTRANS, the State of California, and each and all of their officers, agents and employees, from any and all claims and/or losses accruing or resulting from such exposure. Except as provided by law, Contractor also agrees that the provisions of this paragraph shall apply regardless of the existence or degree of negligence or fault on the part of CALTRANS, the State of California, and/or any of their officers, agents and/or employees.
36. Mandatory Organic Waste Recycling
It is understood and agreed that pursuant to Public Resources Code Sections 42649.8 et seq., if Contractor generates two (2) cubic yards or more of organic waste or commercial solid waste per week, Contractor shall arrange for organic waste or commercial waste recycling services that separate/source organic waste for organic waste recycling. Contractor shall provide proof of compliance, i.e. organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling, upon request from CALTRANS Contract Manager
37. Project Close Out/Closeout Report
a. AGENCY will provide a final close out report to the CALTRANS Contract Manager no later than November 1, 2024.
CALTRANS reserves the right to inspect the project location prior to approving the final invoice and closeout report.
b. CALTRANS reserves the right to withhold final payment to AGENCY pending receipt and approval of the final closeout report by the CALTRANS Contract Manager. c. Payments shall be forfeit if invoices are submitted after November 1, 2024.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
38. ADA Compliance
All entities that provide electronic or information technology or related services that will be posted online by CALTRANS must be in compliance with Government Code Sections 7405 and 11135 and the Web Content Accessibility Guidelines (WCAG) 2.0 or subsequent version, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success. All entities will respond to and resolve any complaints/deficiencies regarding accessibility brought to their attention.
39. Prevailing Wages and Labor Code Compliance
AGENCY shall comply with any and all applicable labor and prevailing wage requirements in Labor Code Sections 1720 through 1815 and implementing regulations for any public works or maintenance contracts and subcontracts executed for the AGENCY’s work on or for the Project.
40. In the event of any inconsistency between the provisions which constitute this RGA, the following order of precedence shall apply:
I. This Restricted Grant Agreement (as amended);
II. The CALTRANS Local Grant Program Guidelines;
III. Approved Indirect Cost Rate (if applicable);
IV. Approved Grant Application (as amended); and
V. AGENCY Resolution.
41. Survival
AGENCY’s representations, the indemnification provisions in paragraph 21, intellectual property provisions in paragraphs 30, 31, 32, and 33, and all other provisions which by their inherent character establish ongoing obligations shall remain in full force and effect, regardless of any expiration and/or termination of this RGA.
42. Sanctions
No agreements under this RG A shall be made with individuals and/or entities that are determined to be a target of sanctions by the State of California while such sanctions are in effect.
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
Section IV
Attachments:
The following attachments are incorporated into, and are made a part of this RGA by this reference and attached hereto.
I. Grant Program Guidelines
II. Approved Indirect Cost Rate (if applicable)
III. Approved Grant Application and Amendment(s) to Grant Application (if applicable) IV. AGENCY Resolution
In Witness Whereof, the parties hereto have executed this RGA on the day and year first herein above written:
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
CITY OF LANCASTER
By:
By:
Printed Name:
Gretchen Chavez
Printed Name:
Title:
Office Chief
Clean California Local Grant Program
Division of Local Assistance
Title:
Date:
Date:
By:
Printed Name:
Title:
Date:
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
Cl
ean California Local Grant Program
(State)
Amendment to Grant Application
Amendment Number_I_(“Amendment”)
This Amendment will commence on May 15, 2022, or upon approval by CALTRANS, whichever occurs later, and it amends the Grant Application submitted by City of Lancaster, hereinafter referred to as AGENCY, as set forth below:
Application
Section Original Text Amended Text
Attachment C Attachment C: Detailed
Engineers Estimate dated
01/20/2022, CCLGP
Participating Costs $7,282,616
Replaced in entirety Attachment C:
Detailed Engineers Estimate dated
05/19/2022 with updated cost proposal-
CCLGP Participating Costs $5,000,000
In W
itness Whereof, the parties hereto have executed this Amendment Number _I_ to the Grant Application on the day and year first herein above written:
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
City of Lancaster
By: By:
Printed Name:
Gretchen Chavez
Printed Name:
Title:
Office Chief
Clean California Local Grant Program
Division of Local Assistance
Title:
Date: Date:
By:
Printed Name:
Title:
Date:
A new document was
needed to capture
updates to costs.
-
City of Lancaster
Agreement Number CCL-5419(063)
AMS ADV ID: 0722000285
Application Instructions for
Detailed Engineer's Estimate and Total Project Cost
• Applicants are expected to use this template for estimating/documenting the cost of construction items and the overall project costs. (participating & non- participating)
•The Detailed Engineer's Estimate and Total Project Costs must tie to the information presented in the CCLGP Application Form. • Do NOT input values in gray cells. These cells are formula-driven and will automatically update.
Project (Engineer's) Information
• The Licensed Engineer in 'responsible charge' of the overall CCLGP application must review all information presented in this Estimate form and ensure the values a
re consistent with the corresponding plans included in the application. This requirement is considered necessary to ensure the CCLGP application meets the PSR- Equivalent requirements - including the use of construction items, quantities and unit prices that meeting industry standards for PSR-Equivalents. The engineer is also expected to review the breakdown of participating vs. non-participating costs shown in estimate and confirm they are consistent with Program Guidelines.
Engineer's Estimate & Cost Breakdown
For each construction item in this table, the following items must be filled:
Item: indicate the name of a construction item used in this project.
Quantity: indicate the total quantity of each construction item Units: indicate the units of measurement (i.e. Square Feet or SQFT.) Only use Lump Sum (LS) for items listed on the Allowable Lump Sum tab.
Unit Cost: indicate the unit cost for one quantity.
Total Item Cost will be automatically calculated once the above information are provided for each line item (row).
The Project Estimate form only has a limited number of lines. If your estimate has more items; you will have to combine similar items. If an applicant has already developed a complete estimate using another tool, the items can be grouped into sub-categories such as overhead, bike lanes, sidewalks, drainage, utilities etc., as long as the full estimate is attached to the estimate or with the application in the Additional Attachments section.
General Overhead:
Costs for these items have been separated out to reduce confusion relating to participating vs. non-participating costs calculations.
The % of participating vs. non-participating costs are automatically calculated based on the ratio of these costs for all of the other construction items.
Cost Breakdown
Participating Items/costs: these are expected to represent all scope of work construction items that are necessary for the purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. %- Insert the percentage of the total item cost that is directly attributed to "Participating items". $- This field will automatically calculate once a percentage is entered in the previous question.
Non-participating Items/costs: these are expected to represent all construction items that are not necessary for the purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces.
Subtotals and Contingencies:
Subtotal of Construction Items: This field will automatically calculate the total of all construction items indicated above.
Construction Item Contingencies: Insert percentage of contingencies, which is intended to account for the cost of minor construction items not defined at the time the applications are prepared.
Total (Construction Items and Contingencies) Cost: This field will automatically calculate the total from all information indicated above.
Project Delivery Costs: The participating vs. non-participating split is automatically calculated for all Project Delivery Costs.
Project Approval & Environmental Document (PA&ED): Total cost of Environmental Studies and Permits phase of the project.
Plans, Specifications & Estimate (PS&E): Total cost of Plans, Specifications and Estimates phase of the project.
Total Preliminary Engineering (PE): This total is automatically calculated. Total of (PA&ED) + (PS&E) Note: Per the Caltrans Local Assistance Procedures Manual, the total cost for PE should not exceed 25%. All costs over the 25% must be shown in the application as non-participating.
Right of Way Engineering: Total cost of Right of Way Engineering, including obtaining the RW Certification.
Acquisitions and Utilities: Total cost of Acquisitions and Utilities.
Total RW: This total is automatically calculated. Total of (RW Eng.) + (Acq.&Utilities) Total Pre-Construction Costs: This total is automatically calculated. Total of (PE) + (RW) Construction Engineering (CE): Total cost of Construction Engineering. Note: Per the Caltrans Local Assistance Procedures Manual, the total cost for CE should not exceed 15%. All costs over the 15% must be shown in the application as non-participating.
Total Construction Costs: This total is automatically calculated. Total of (CE) + (Con. Item. & Contig.) Total Project Cost Estimate: The participating vs. non-participating split is automatically calculated for the Total Project Costs. • This is automatically calculated from all information entered above. • T
his value must represent the total estimated cost of the entire CCLGP project. • T
he application must account for the non-participating costs being funded with local funds. Because this local funding is considered non-participating, it cannot be c
onsidered leveraging or matching funding.
Documentation of Non-Participating Costs:
Non-participating Items/costs: these are costs for items outside of the program guidelines or necessary project parameters of proposed scope of work. Master plan or other activates not necessary for the purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces are considered non-participating costs.
Engineers must present their logic and calculations for splitting the projects costs between participating and non-participating costs. 3 of 6
Project Milestone Date Total Cost
Project Study Report Approved 3/25/2022
Begin Environmental (PA&ED) Phase 4/18/2022
Circulate Draft Environmental Document 7/11/2022
Draft Project Report 11/14/2022
End Environmental Phase (PS&ED Milestone) 1/6/2023
Begin Design Phase (Ready to List for Advertisement Milestone) 1/9/2023 Begin Right of Way Phase 6/5/2023
End Right of Way Phase (Right of Way Certification Milestone) 1/5/2024 End Construction Phase (Construction Contract Acceptance Milestone) MUST BE NO LATER THAN 6/30/2024 5/31/2024
Begin Closeout Phase 6/3/2024
End Closeout Phase (Closeout Report) REPORTS AND FINAL INVOICES
MUST BE RECEIVED, APPROVED AND PROCESSED BY CALTRANS BY 12/31/24 12/1/2024
4 of 6
Project Information:
Agency: Date:
Project Description:
Project Title
Project Location:
License #: 2799
Engineer's Estimate and Cost Breakdown:
Cost Breakdown
Engineer's Estimate (for Construction Items Only) CCLGP Participating CCLGP Non-participating Costs/Items Costs/Items
Item
No. Item Quantity Units Unit Cost Total
Item Cost % $ % $
General Overhead-Related Construction Items
1 1 LS $550,000.00 $550,000 $0 100% $550,000
2 1 LS $70,000.00 $70,000 $0 100% $70,000
3 1 LS $16,340.00 $16,340 $0 100% $16,340
4 1 LS $65,000.00 $65,000 $0 100% $65,000
5 LS $0 $0 100% $0
6 LS $0 $0 100% $0
7 LS $0 $0 100% $0
8 LS $0 $0 100% $0
9 LS $0 $0 100% $0
10 LS $0 $0 100% $0
General Construction Items
11 175700 SQFT $0.50 $87,850 100% $87,850 0% $0 $0
12 175700 SQFT $1.00 $175,700 100% $175,700 0% $0 $0
13 3590 LF $18.00 $64,620 100% $64,620 0% $0 $0
14 Pedestrian bridge 1 EA $1,000,000.00 $1,000,000 100% $1,000,000 $0 $0 15 10640 LF $100.00 $1,064,000 100% $1,064,000 0% $0 $0 16 53200 SQFT $6.00 $319,200 100% $319,200 0% $0 $0
17 106400 SQFT $2.00 $212,800 100% $212,800 0% $0 $0
18 106400 SQFT $1.50 $159,600 100% $159,600 0% $0 $0
19 6 EA $800.00 $4,800 100% $4,800 0% $0 $0
20 10640 LF $2.00 $21,280 $0 100% $21,280 $0
21 10 EA $1,200.00 $12,000 51% $6,163 49% $5,837 $0
22 2 EA $8,000.00 $16,000 $0 100% $16,000 $0
23 Public Art pieces 1 LS $400,000.00 $400,000 $0 100% $400,000 $0 24 Street crosswalk striping 1 EA $1,500.00 $1,500 $0 100% $1,500 $0 25 Pedestrian controlled stoplight 1 EA $100,000.00 $100,000 $0 100% $100,000 $0 26 Flashing 'PEDESTRIAN CROSSING' signs 2 EA $4,000.00 $8,000 $0 100% $8,000 $0 27 6' tall block wall 3590 LF $150.00 $538,500 $0 100% $538,500 $0 28 Tubular steel fence 1000 LF $200.00 $200,000 $0 100% $200,000 $0 29 Irrigation System 16100 SQFT $3.00 $48,300 $0 100% $48,300 $0 30 Weed Abatement, Soil Preparation and Fine 16100 SQFT $0.50 $8,050 $0 100% $8,050 $0 31 Shrubs and Groundcovers 16100 SQFT $2.50 $40,250 $0 100% $40,250 $0 32 Planting Area Mulch 3" thick 16100 SQFT $0.75 $12,075 $0 100% $12,075 $0 33 Trees - 15 gal 45 EA $200.00 $9,000 $0 100% $9,000 $0 34 90 Day Maintenance 16100 SQFT $0.25 $4,025 $0 100% $4,025 $0 35 $0 $0 100% $0 $0
36 $0 $0 100% $0 $0
37 $0 $0 100% $0 $0
38 $0 $0 100% $0 $0
39 $0 $0 100% $0 $0
40 $0 $0 100% $0 $0
41 $0 $0 100% $0 $0
42 $0 $0 100% $0 $0
43 $0 $0 100% $0 $0
44 $0 $0 100% $0 $0
45 $0 $0 100% $0 $0
46 $0 $0 100% $0 $0
47 $0 $0 100% $0 $0
48 $0 $0 100% $0 $0
49 $0 $0 100% $0 $0
50 $0 $0 100% $0 $0
51 $0 $0 100% $0 $0
52 $0 $0 100% $0 $0
Subtotal of Construction Items: $5,208,890 $3,094,733 $2,114,157 $0 Construction Item Contingencies (% of Construction Items): 20.00% $1,041,778 $618,947 $422,831 Total (Construction Items & Contingencies) cost: $6,250,668 $3,713,679 $2,536,989 Project Delivery Costs:
Type of Project Cost Cost $
Preliminary Engineering (PE) CCLGP Participating Costs CCLGP Non-participating Costs Community Outreach post Grant Approvel: $371,368 $253,699 Environmental Studies and Permits(PA&ED): $118,825 $81,175 Plans, Specifications and Estimates (PS&E): $386,181 $263,819 "PE" costs / "CON" costs Total PE: 1,475,067$ $876,374 $598,693 24% 25% Max Right of Way (RW)
Right of Way Engineering:
Acquisitions and Utilities: $29,706 $20,294
Total RW: 150,000$ $29,706 $20,294
Total Pre-Construction Costs (PE+RW): $1,625,067 $906,081 $659,574 Construction Engineering (CE) "CE" costs / "CON" costs
Construction Engineering (CE): $320,828 $219,172 9% 15% Max Total Construction Costs: $6,790,668 $4,034,507 $2,756,161 CCLGP Participating Costs Non-participating Costs
Total Project Cost: $5,000,000 $3,415,735
Documentation of Non-Participating Costs:
Item #: Description of Engineer's Logic: (See examples shown in the Instructions) Detailed Engineer's Estimate and Total Project Costs
Important: Read the Instructions in the first sheet (tab) before entering data. Do not enter data in shaded fields (with formulas).
The Engineer's logic and/or calculations for splitting costs between CCLGP-Participating and Non-participating costs must be documented in this section of the Estimate form.
City of Lancaster 5/19/2022
Amargosa Creek Recreational Trail
Aggregate base 6" thick
Bike trail striping
Separate logic is required for each item which is partly a participating cost for CCLGP funding or is required for the construction of a non-participating item/element of the project.
Amargosa Creek Recreational Trail Project
Lancaster, CA
Doug Grove, RLA
AC paving 4" thick
Name of Licensed Engineer in responsible charge of preparing or reviewing this PSR-Equivalent Cost Estimate:
Post and cable trail fence
Trail signage
Waste Bins
Drinking fountain and sump
Site clear and grub
Grading
Remove existing chain link fence
4" concrete paving
Mobilization
Traffic Control
Stormwater Protection Plan
Construction staking and surveying
100,000$
50,000$
650,000$
625,067$
$8,415,735
540,000$
200,000$
5/31/2022
5 of 6
Item Description- Common Unit Pay
CLEARING AND GRUBBING LS
CONSTRUCTION AREA SIGNS LS
CONSTRUCTION SURVEY/STAKING LS
DEVELOP WATER SUPPLY LS
DUST CONTROL LS
EROSION CONTROL LS
FINISHING ROADWAY LS
JOB SITE MANAGEMENT LS
MITIGATION LS
MOBILIZATION LS
MOBILIZATION, DEMOBILIZATION, AND FINAL CLEANUP LS
PERMITS LS
PREPARE STORM WATER POLLUTION PREVENTION PLAN LS
PREPARE WATER POLLUTION CONTROL PROGRAM LS
RAILROAD FLAGGING & MISCELLANEOUS LS
RE OFFICE LS
SIGNS LS
STRIPING LS
TRAFFIC CONTROL SYSTEM LS
TRAFFIC MANAGEMENT PLAN LS
Item Description- Not common Unit Pay
ABANDON SEWER LS
ADL BURIAL LOCATION REPORT LS
ASBESTOS COMPLIANCE PLAN LS
AUTOMATED WORK ZONE INFORMATION SYSTEM LS
BOOSTER PUMP LS
BRIDGE REMOVAL LS
BUILDING WORK LS
CAMERA SYSTEMS LS
CERTIFY EXISTING BACKFLOW PREVENTERS LS
CHANGEABLE MESSAGE SIGN SYSTEM LS
CHECK AND TEST EXISTING IRRIGATION FACILITIES LS
CLEAN AND PAINT BRIDGE RAILING LS
CLEAN AND PAINT STEEL SOLDIER PILING LS
CLEAN AND PAINT STRUCTURAL STEEL LS
CLEAN AND PAINT STRUCTURAL STEEL (EXISTING BRIDGE) LS
CLEAN STRUCTURAL STEEL (EXISTING BRIDGE) LS
CONTRACTOR-SUPPLIED BIOLOGIST (LS) LS
CONTROL AND NEUTRAL CONDUCTORS LS
CONTROL AND NEUTRAL CONDUCTORS (ARMOR-CLAD) LS
DATA CORE LS
DRAINAGE PUMPING EQUIPMENT LS
DUST CONTROL PLAN (NATURALLY OCCURRING ASBESTOS) LS
DUST PALLIATIVE LS
ELECTRIC SERVICE FOR BOOSTER PUMP LS
ELECTRIC SERVICE FOR IRRIGATION LS
FIBER OPTIC CABLE SYSTEMS LS
FISH PROTECTION LS
FLASHING BEACON SYSTEM LS
HEALTH AND SAFETY PLAN LS
INDUCTIVE LOOP DETECTOR (LS) LS
INTELLIGENT COMPACTION LS
INTERCONNECTION CONDUIT AND CABLE (LS) LS
INVASIVE SPECIES CONTROL LS
IRRIGATION WATER SERVICE CHARGES LS
JACKING SUPERSTRUCTURE LS
LEAD COMPLIANCE PLAN LS
LIGHTING SYSTEM-(Electroliers are a separate item (EA)) LS
MAINTAIN EXISTING PLANTED AREAS LS
MAINTAINING EXISTING TRAFFIC MANAGEMENT SYSTEM ELEMENTS DURING
CONSTRUCTION
LS
MIX DESIGN (FULL DEPTH RECLAMATION-FOAMED ASPHALT) LS
MIX DESIGN (FULL-DEPTH RECLAMATION-CEMENT) LS
MOBILIZATION (MARINE ACCESS) LS
MODIFY BRIDGE RAILING (LS) LS
MODIFY PUMP PLANT LS
MODIFYING EXISTING ELECTRICAL SYSTEM LS
MONITOR WELL LS
NATURAL RESOURCE PROTECTION PLAN LS
NOA BURIAL LOCATION REPORT LS
NOISE MONITORING LS
OPERATE EXISTING IRRIGATION FACILITIES LS
PAINT STRUCTURAL STEEL (EXISTING BRIDGE) LS
PERMANENT EROSION CONTROL ESTABLISHMENT WORK LS
PLANT ESTABLISHMENT WORK LS
PORTABLE CHANGEABLE MESSAGE SIGN (LS) LS
PREPAVING INERTIAL PROFILER LS
PRESTRESSING LS
PRESTRESSING CAST-IN-PLACE CONCRETE LS
PRESTRESSING PRECAST GIRDER LS
PRESTRESSING STEEL GIRDERS LS
PROGRESS SCHEDULE (CRITICAL PATH METHOD) LS
PRUNE EXISTING PLANTS LS
PUBLIC SAFETY PLAN LS
PUMPING PLANT ELECTRICAL EQUIPMENT LS
PUMPING PLANT EQUIPMENT LS
RADAR SPEED FEEDBACK SIGN SYSTEMS LS
RAMP METERING SYSTEM LS
RECONSTRUCT DRAINAGE FACILITY (LS) LS
RECONSTRUCT FENDER LS
RECYCLED WATER IDENTIFICATION AND WARNING SIGNS LS
REMOVE CONCRETE (LS) LS
REMOVE CONCRETE (MISCELLANEOUS) (LS) LS
REMOVE CONCRETE CURB (LS) LS
REMOVE DOWNDRAIN (LS) LS
REMOVE DRAINAGE FACILITY (LS) LS
REMOVE IRRIGATION FACILITY LS
REMOVE RAILING LS
REMOVE REINFORCED CONCRETE BOX CULVERT (LS) LS
REMOVE RETAINING WALL (LS) LS
REMOVE RETAINING WALL (PORTION) (LS) LS
REMOVE SIGN STRUCTURE (LS) LS
REMOVE SIGN STRUCTURE WALKWAY (LS) LS
REMOVE SLOPE PAVING (LS) LS
REMOVE SOUND WALL (LS) LS
REMOVING EXISTING ELECTRICAL SYSTEM LS
ROADSIDE CLEARING LS
SALVAGE IRRIGATION FACILITY LS
SAMPLING AND ANALYSIS PLAN (NATURALLY OCCURRING ASBESTOS) LS
SIGN ILLUMINATION SYSTEM LS
STAIN GALVANIZED SURFACES (LS) LS
STRAY CURRENT PROTECTION (BRIDGE) LS
STREET SWEEPING LS
TEMPORARY ACTIVE TREATMENT SYSTEM LS
TEMPORARY CONCRETE WASHOUT LS
TEMPORARY CONSTRUCTION MAT (LS) LS
TEMPORARY CREEK DIVERSION SYSTEMS LS
TEMPORARY DECKING LS
TEMPORARY FLASHING BEACON LS
TEMPORARY LIGHTING SYSTEM LS
TEMPORARY PEDESTRIAN ACCESS ROUTE LS
TEMPORARY SHORING LS
TEMPORARY SIGNAL AND LIGHTING LS
TEMPORARY SIGNAL SYSTEM LS
TEMPORARY SUPPORT LS
TIME-RELATED OVERHEAD (LS) LS
TRAFFIC MONITORING STATION SYSTEM LS
WATER METER CHARGES LS
WATER SUPPLY SYSTEM LS
WELL DEVELOPMENT LS
WORK AREA MONITORING (BRIDGE) LS
6 of 6
STAFF REPORT
City of Lancaster
CC 7
6/28/2022
JC
Date: June 28, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Chenin Dow, Senior Manager - Real Estate & Economic Development Sydney Yeseta, Assistant Manager – Economic Development Subject: Memorandum of Understanding with Antelope Valley Economic Development and Growth Enterprise
Recommendations:
1. Approve a Memorandum of Understanding with Antelope Valley Economic Development and Growth Enterprise (AV EDGE) related to regional economic development initiatives.
2. Authorize the City Manager, or his designee, to finalize and execute all related documents.
Fiscal Impact:
Up to $650,000.00 over three fiscal years beginning July 1, 2022, through June 30, 2025.
Background:
AV EDGE was created when the Antelope Valley Board of Trade and the Greater Antelope Valley Economic Alliance (GAVEA) merged in 2019. Since its inception, the organization has been a key strategic partner in advancing economic development initiatives for the Lancaster community and surrounding Antelope Valley region.
The proposed Memorandum of Understanding (“MOU”) would solidify the partnership between the City and AV EDGE, as well as strengthen the region’s economic development efforts. Through the MOU, AV EDGE would provide a variety of services, including but not limited to:
Representation at a minimum of four trade shows per calendar year; Publication of the annual Economic Roundtable Report and a Labor Market Study every other year;
Mechanisms such as newsletters and forums to engage and maintain relationships with brokers and site selectors;
9 5
7 Collaboration with member cities to explore tourism marketing on a regional basis.
The intended purpose of the MOU is to provide a mechanism for AV EDGE to serve as force multiplier of the City’s existing economic development staff, fostering collaboration and enhanced services to further regional economic development goals.
SY/sm
Attachment:
Memorandum of Understanding
1 MEMORANDUM OF UNDERSTANDING REGARDING REGIONAL MARKETING
This MEMORANDUM OF UNDERSTANDING REGARDING REGIONAL MARKETING (“MOU”) is made and entered into as of June 28, 2022 (“Effective Date”), by and between AV EDGE, a California nonprofit corporation (“AV Edge”), and CITY OF LANCASTER, a California municipal corporation and charter city (“City”) (AV Edge and City are sometimes singularly referred to as a “Party” and collectively referred to as the “Parties”).
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Term of MOU. The term of this MOU shall commence on July 1, 2022 and expire on June 30, 2025 (“ Term”); provided, however, that either Party may terminate this MOU upon 30- days written notice to the other Party.
2. AV Edge’s Obligations. During the Term of this MOU, AV Edge agrees to and shall provide the services and perform the tasks described in the Schedule of Services and Deliverables that is attached hereto as Exhibit A and incorporated herein.
3. City’s Obligations. In consideration of AV Edge performing its obligations as described in section 1 of this MOU, City agrees to and shall pay to AV Edge the following amounts during the Term:
• $150,000.00 for the period of July 1, 2022, through June 30, 2023; • $200,000.00 for the period of July 1, 2023, through June 30, 2024; and • $300,000.00 for the period of July 1, 2024, through June 30, 2025.
The City’s payment to AV Edge under this section 3 shall be inclusive of and instead of all sponsorship, membership, and other forms of financial support City provided or agreed to provide AV Edge prior to the Effective Date.
4. Indemnification. AV Edge agrees to and shall indemnify, defend (with attorneys selected by City) and hold City, including its elected and appointed officials, employees, agents and representatives, harmless from and against any and all claims, actions, losses, liabilities, damages, costs and expenses (including, but not limited to, expert witness fees, attorneys’ fees and costs) of any kind or nature which arise or in any way relate to AV Edge performing the services, tasks, and/or other obligations under this MOU. The provisions of this section shall survive the expiration or termination of this MOU.
5. Independent Contractors. The Parties hereto agree that each Party, and any of its agents, servants, or employees of each Party, in the performance of this MOU, shall act in an independent capacity and not as officers, servants, agents or employees of the other Parties.
6. Waiver. Any waiver with respect to any provision of thi s MOU shall not be effective unless in writing and signed by all Parties hereto. The waiver by any Party of any breach of any term, covenant, or condition herein contained shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or any other term, covenant or condition herein contained.
7. Amendments; Integration. This MOU constitutes the entire agreement between the Parties on the matters addressed herein. This MOU cannot be orally modified. Any amendment or 2 modification to this MOU must be in writing, signed by the Parties. It is mutually understood and agreed that no alterations or variation of the terms of this MOU shall be valid unless made in writing and signed by each of the Parties hereto, and that no oral understanding or agreement not incorporated herein, and no alterations or variations of the terms hereof unless made in writing between the Parties hereto, shall be binding on any of the Parties hereto.
8. Time of the Essence. Time is of the essence with respect to th e performance of every provision of this MOU in which time of performance is a factor.
9. Counterparts. This MOU may be executed in identical counterpart copies, each of which shall be an original, but all of which taken together shall constitute the same agreement.
10. Notices. Any notices pursuant to this MOU shall be in writing and sent (i) by Federal Express (or other established express delivery service which maintains delivery records), (ii) by hand delivery, (iii) by certified or registered mail, postage prepaid, return receipt requested, or (iv) by email , if at least one other method is used, to the following addresses:
To AV Edge: AV Edge
41301 12th Street West, Suite D
Palmdale, California 93551
Attention: Drew Mercy
Email: [email protected]
To City: City of Lancaster
44933 Fern Avenue
Lancaster, California 93534
Attention: Jason Caudle
Email: [email protected]
11. Construction. This MOU shall not be construed against any Party that was involved in preparing it but shall be construed as if all Parties jointly prepared this MOU, and any uncertainty and ambiguity shall not be interpreted against any one Party.
12. Governing Law. This MOU is to be interpreted, enforced, and governed by and under the laws of the State of California, regardless of the conflicts of laws rules of any individual state.
13. Warranty of Authority. Each Party represents that it is authorized to enter into, execute, deliver, and perform this MOU, that it has all necessary authority from its boards, officers, directors, members, partners, or others whose authority or consent may be required to enter into this MOU, and that no other acts, votes, or other proceedings are necessary on the part of any Party to authorize this MOU.
14. Cooperation; Further Acts. The Parties agree to fully cooperate to accomplish the terms, purpose, and spirit of this MOU, including but not limited to executing such documents and taking such other actions as may be reasonably necessary to implement the purpose of this MOU.
15. Captions and Headings. The paragraph headings, captions, and titles used in this MOU are intended solely for convenience of reference and shall not in any manner amplify, limit, modify, or otherwise be used in the interpretation of any of the provisions hereof. 3 16. Binding Agreement. This MOU shall be binding upon each of the Parties and shall be enforceable by any Party against any of the other Parties. This MOU shall also be binding upon the Parties respective heirs, administrators, representatives, executors, successors, and assigns, and shall inure to the benefit of each party and to their respective heirs, administrators, representatives, executors, successors, and assigns.
AV EDGE,
a California nonprofit mutual benefit
corporation
By: _________________________________
Bret Banks, President
CITY OF LANCASTER,
a charter city and California municipal
corporation
By: ______________________________
Jason Caudle, City Manager
A-1
EXHIBIT A
SCHEDULE OF SERVICES AND DELIVERABLES
City expects AV Edge to be a key strategic partner in advancing economic development initiatives for the benefit of the Lancaster community and the region as a whole. The partnership established through this MOU is intended to provide a mechanism for AV Edge to serve as a force multiplier of the City’s existing economic development staff, fostering collaboration and enhanced services to further regional economic development goals.
In consideration of the payment described in section 3 of the MOU, AV Edge agrees to and shall do the following:
AV Edge and City Partnership Branding/Image Building
• Representation at a minimum of four (4) trade shows per calendar year, to be prioritized through mutual consent of the Parties.
• Such representation shall focus on industrial trade shows with an audience of site selectors; retail trade shows shall continue to be the focus of the individual City to avoid any potential conflict of interest with neighboring cities.
Publications
• Annual Economic Roundtable Report, an economic and demographic report gea red toward an audience of site selectors and development prospects, in which the City shall be entitled to a minimum of a two -page spread reflecting content of City’s choosing as appropriate for said audience. Roundtable Report should be released each year in conjunction with the Business Forum, but no later than June 30 of said year.
• Labor Market Study, to be published at least every other year beginning in 2022.
Broker/Site Selector Relationships
• Establish, maintain and update an AV Edge broker/site selector contact list, consisting of local brokers as well as those in Los Angeles and Kern Counties, to utilize for activities in this category. • Forum to be held at least twice per calendar year, providing regional development highlights; site opportunities; networking; and an opportunity for City to feature key projects. • Regional site tour at least once per calendar year.
• Broker newsletter/e-mail campaign highlighting new development and regional opportunities, to be published at least quarterly and published on the website (City to assist in providing appropriate, updated content).
• Establish a Business Attraction Task Force which includes members f rom the Cities, utility companies, and brokers to support regional collaboration and prioritization of key projects. The task force would also provide input on which trade shows to attend and be prepared to participate in prospect meetings.
Prospects
• Vet business prospects as they reach out to AV Edge as a result of marketing/site selector efforts; provide basic information such as the Roundtable Report and evaluate prospect viability.
A-2
• Refer viable prospects to City within three (3) days of meeting with prospect. • Participate in meetings/site visits with prospects as needed.
Online Presence
• Provide a user -friendly, updated website representing regional highlights , including local job opportunities and hiring events.
• Include featured sites with key development details from member cities, to be updated at least quarterly.
Legislative Advocacy and Grant Writing
• Provide letters of support for grants and legislation which benefit the region as needed . Letters of support shall be executed in a timely manner, within seven (7) days of request.
Tourism
• Collaborate with member cities to explore tourism marketing on a regional basis. Specific parameters and budgets for such a marketing program shall be negotiated with the Lancaster and Palmdale Tourism and Business Improvement Districts (TBIDs), with the involvement of the Cities.
• Budget required to manage and oversee the TBIDs will be included in the recompense above and no additional funding will be provided to perform this function.
Sponsorship
• Recognition in AV Edge event marketing materials.
• Recognition in AV Edge publications.
• Acknowledgement on AV Edge website.
• Opportunity to speak at the annual Business Outlook Conference.
Representation
• To facilitate collaboration, the City shall be entitled to one (1) voting seat on the nine -member Executive Committee (City Representative).
• The City Representative shall also serve on the Board of Directors. • The City Representative shall be appointed and may be substituted at any time at the sole discretion of the City. Any individual designated by the City as the City Representative at a given meeting shall have full voting rights.
Reporting
• AV Edge shall provide quarterly reports detailing compliance with the above Deliverables.
Example information would include the pieces of legislation supported; grants applied for and outcomes, when available; events/forums hosted; prospect leads generated/any prospect meetings held; etc.
STAFF REPORT
City of Lancaster
CC 8
6/28/2022
JC
Date: June 28, 2022
To: Mayor Parris and City Council Members
From: Jeff Hogan, Senior Director - Development Services Chenin Dow, Senior Manager – Real Estate & Economic Development Patti Garibay, Manager – Real Estate & Economic Development Subject: Approval of the Project Change Request Renewal with IBM for the Continued Operation of the Lancaster Innovation Platform
Recommendations:
1. Approve the Project Change Request (PCR 6) with IBM for the continued operation of the Lancaster Innovation Platform utilizing IBM Watson Solutions for data analysis.
2. Authorize the City Manager, or his designee, to finalize and execute the PCR 6 agreement.
Fiscal Impact:
$119,780.00; with these actions, sufficient funding is available in account 101-4791-308.
Background:
Since 2018, City Staff has worked closely with a team of IBM consultants to develop and maintain the Lancaster Innovation Platform as a data visualization and insights tool. The Platform allows for the ingestion of the City’s internal data sources from various departments and systems into a single dashboard interface where the data visualizations are displayed.
The team initially concentrated on a Public Safety data module to provide insights on crime trends and resource allocation throughout the City on a real-time basis. These uniquely designed interactive charts and maps served as a successful model for additional data modules, including Fire Department calls, Comcate service requests, and traffic collision data.
The Platform is an expanding and evolving tool that brings valuable insights for a better understanding of city data and sound decision-making. With this advanced technology and the expertise of the IBM team, the City can continue utilizing the Platform to be a smarter, more innovative city.
9 5
8 Annual costs are not expected to exceed $119,780.00.
PG/sm
Attachments:
IBM Original Executed Agreement 2018
IBM Proposed Agreement 2022
PCR Request 2 for Lancaster Page 1 of 3 PCR #02
IBM - Project Change Request 2 for City of Lancaster
Project Change Request Identification
Request Date: July 25, 2019
Project Change Request Number: 02
Originator’s Name and Role: Keith Van Leeuwen, Project Executive Patrick Legendre, Project Manager
Contract # IBM SOW signed 7/20/18
IBM Project ID WTFCV
Priority (High/Medium/Low): High
Project Change Request Assessment
Change
Requested:
This Project Change Request (PCR) will require a contract modification that will result in a change to the total contract value if approved.
This PCR will add the following Labor Hours and Category as follows:
Labor Category
2018
Hourly
Rate
2019 Hourly
Rate
New Hours
Est Total
Program Manager $290 $220 45 $9,900
Tech Lead/ Sr.
Developer
$230 $230 180 $41,400
Developer $161 $210 350 $73,500
Total 575 $124,800
This PCR 1 modifies the scope and activities in the SOW dated July 20, 2018.
Rationale: This PCR is being submitted to increase the estimated hours required to develop and deploy the Lancaster Innovation Platform Phase III Enhanced Capabilities and maintain the system for 12 months.
Project Change Request Analysis
Scope:
The aforementioned hours in this PCR will be added to section Charges, of the IBM SOW Dated 7/20/2018.
IBM will develop and deploy the following enhanced features on the Lancaster Innovation Platform:
1. Enhanced Dashboard Functionality:
Increase dashboard functionality in 5 sprints that allows user to pinpoint individual crime instances as “dropped pins” by location and filter by date ranges.
Additionally, the user will be able to search for specific variables by a determined radius within an address (e.g. 2 mile radius around a wellness home)
2. Data Integration:
Prepare the Lancaster Innovation Platform Phase III to ingest two new data sources including Fire Department provided data sources/variables and Code Enforcement data.
DocuSign Envelope ID: C4678DF9-B4B2-44C2-9780-E56750B68DF0
PCR Request 2 for Lancaster Page 2 of 3 PCR #02
3. Lancaster Innovation Platform Maintenance:
IBM will deploy resources to perform operations to continuously maintain the currently deployed Lancaster Innovation Platform dashboard.
4. Predictive Analytics:
IBM will research the feasibility around incorporating predictive analytics to the data sources currently on the Lancaster Innovation Platform. For example, looking at route optimization or traffic predictions.
Schedule: The project schedule will increase the end date to 7/31/2020 Price:
The Services in this PCR will be conducted on a time and materials basis.
The estimated total development services charges are $124,800 and are exclusive of any other reasonable expenses incurred in connection with the Services, and any applicable taxes.
Any estimate given by IBM of any charge whether for planning or any other purpose is only an estimate. As these are estimated amounts, actual fees may differ.
IBM will invoice Client monthly for actual Services hours worked (whether above or below the estimated hours), operation and maintenance (fixed), applicable taxes, travel and living expenses, and other reasonable expenses incurred in connection with the Services.
Price is good only if all activities are purchased as a whole. IBM reserves the right to re-price for a subset of this list.
Amounts are due upon receipt of the invoice and payable within 30 days of the invoice date to an account specified by IBM.
Client agrees to pay all applicable charges specified by IBM, charges for use in excess of authorizations, any customs or other duty, tax, levy, or fee imposed by any authorities resulting from Client’s acquisitions under this SOW, and any late payment fees.
This offer is valid until October 8, 2019, unless extended in writing by IBM.
Terms and
Conditions
The terms and conditions of the SOW dated July 20, 2018 apply.
The estimated end date in the overall project schedule will not be impacted by this change.
DocuSign Envelope ID: C4678DF9-B4B2-44C2-9780-E56750B68DF0 PCR Request 2 for Lancaster Page 3 of 3 PCR #02
Agreed to:
City of Lancaster
Agreed to:
I. International Business Machines Corporation
By ______________________________________
Authorized signature
By ______________________________________
Authorized signature
Title: Title:
Name (type or print): Name (type or print):
Date: Date:
Customer number: 1794768 Referenced Agreement name: IBM Customer Relationship Agreement dated 6/21/2018
Project Name: Lancaster Innovation Platform SOW number: SOW dated 9/10/2018 Estimated Start Date: 8/2/2019 IBM Work Number: WTFCV
Estimated End Date: 7/31/2020 PCR number :02
Client address:
44933 Fern Avenue
Lancaster, CA 93534
IBM address:
600 14th St NW
Floors 1 & 2
Washington, DC 20005
DocuSign Envelope ID: C4678DF9-B4B2-44C2-9780-E56750B68DF0 July 30, 2019 | 11:42:37 AM PDT
Senior Managing Consultant
Keith Van Leeuwen
August 6, 2019 | 9:17:06 AM PDT
Jason Caudle
City manager
PCR Request 06 for Lancaster Page 1 of 3 PCR #06
IBM - Project Change Request 06 for City of Lancaster Project Change Request Identification Request Date: May 12, 2022 Project Change Request Number: 06 Originator’s Name and Role: Jed Dickens, Project Executive Patrick Legendre, Project Manager Contract # IBM SOW signed 7/20/18 IBM Project ID WTFCV Priority (High/Medium/Low): Medium Project Change Request Assessment Change Requested: This Project Change Request (PCR) will require a contract modification that will result in a change to the total contract value if approved. This PCR will add a fixed price billing schedule as outlined below: Billing Month Fixed Price July 2022 $7,735.81 August 2022 $32,355.20 September 2022 $31,961.50 October 2022 $23,331.47 November 2022 $2,999.35 December 2022 $2,999.35 January 2023 $3,149.32 February 2023 $3,149.32 March 2023 $3,149.32 April 2023 $3,149.32 May 2023 $3,149.32 June 2023 $2,650.72 Total $119,780.00 This PCR 006 modifies the scope and activities in the SOW dated July 20, 2018. Rationale: This PCR is being submitted to incorporate new development/enhancements to the Lancaster Innovation Platform. Additionally, this PCR allows for Operations and Maintenance support for one year from 7/1/2022-6/30/2023. Project Change Request Analysis Scope: The aforementioned fixed prices in this PCR will be added to section Charges, of the IBM SOW Dated 7/20/2018.
PCR Request 06 for Lancaster Page 2 of 3 PCR #06
IBM will develop, deploy, and provide support for the following features and operations and maintenance of the Lancaster Innovation Platform: 1. Bi-Weekly Lancaster Touchpoints: IBM will meet with the City of Lancaster on a bi-weekly basis to ensure the platform is functioning properly and has no bugs/issues. 2. User Provisioning: IBM will continuously throughout the Period of Performance (PoP) provision new user accounts with full access to all modules within the Lancaster Innovation Platform as requested by City of Lancaster representatives. 3. User Support: IBM developers will be made available to provide troubleshooting, training, and other support to new and past users on the Lancaster Innovation Platform. 4. Expand Email Reporting Capabilities: IBM will create ten (10) new automated reports from current modules on the Lancaster Innovation Platform at intervals as defined by the City of Lancaster. Generated reports will be emailed to parties also identified by City of Lancaster and distribution lists can be updated at any time during the PoP. The data, visualizations, frequency, and other features of these reports will be determined in co-working sessions between IBM and the City of Lancaster. 5. Crossroads Insights: IBM will create analytics and visualizations for the new Crossroad datasets. IBM will analyze the location, time, and frequency of the incidents. IBM will complete data analysis to correlate by demographic and type of incident. The end user will be able to view the results as maps and charts on the platform. 6. Operations & Maintenance: IBM will ensure the continuous operation and maintenance of the City of Lancaster Innovation Platform to include: ingestion of data/file drops provided by City of Lancaster over Secure File Transfer Protocol (SFTP), bug fixes, data formatting and cleansing, and other troubleshooting issues as needed. Schedule: The project schedule will increase the end date to 6/30/2023 Price: The Services in this PCR will be conducted on a firm fixed price basis.
PCR Request 06 for Lancaster Page 3 of 3 PCR #06
The estimated total development services charges are $119,780.00 and are exclusive of any other reasonable expenses incurred in connection with the Services, and any applicable taxes. Any estimate given by IBM of any charge whether for planning or any other purpose is only an estimate. As these are estimated amounts, actual fees may differ. IBM will invoice Client monthly for actual Services hours worked (whether above or below the estimated hours), operation and maintenance (fixed), applicable taxes, travel and living expenses, and other reasonable expenses incurred in connection with the Services. Price is good only if all activities are purchased as a whole. IBM reserves the right to re-price for a subset of this list. Amounts are due upon receipt of the invoice and payable within 30 days of the invoice date to an account specified by IBM. Client agrees to pay all applicable charges specified by IBM, charges for use in excess of authorizations, any customs or other duty, tax, levy, or fee imposed by any authorities resulting from Client’s acquisitions under this SOW, and any late payment fees. This offer is valid until July 1, 2022, unless extended in writing by IBM. Terms and Conditions The terms and conditions of the SOW dated July 20, 2018 apply. Agreed to: City of Lancaster Agreed to: I. International Business Machines Corporation By ______________________________________ Authorized signature By ______________________________________ Authorized signature Title: Title: Name (type or print): Name (type or print): Date: Date: Customer number: 1794768 Referenced Agreement name: IBM Customer Relationship Agreement dated 6/21/2018 Project Name: Lancaster Innovation Platform SOW number: SOW dated 9/10/2018 Estimated Start Date: 7/1/2022 IBM Work Number: WTFCV Estimated End Date: 6/30/2023 PCR number: 06 Client address: 44933 Fern Avenue Lancaster, CA 93534 IBM address: 600 14th St NW Floors 1 & 2 Washington, DC 20005
STAFF REPORT
City of Lancaster
Date: May 20, 2022
To: Mayor Parris and City Council Members
From: Nike Noack, Senior Finance Manager
Subject:Fiscal Year 2020/21 Financial Audit
Recommendations:
Receive audited annual financial report for City of Lancaster, CA Fiscal Year ending June 30, 2021.
Fiscal Impact:
There is no fiscal impact to the City of Lancaster, CA
Background:
The City of Lancaster has recently completed its annual financial audit for fiscal year ending June 30, 2021.The audit was completed by CliftonLarsonAllen LLP (CLA). The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. These procedures include a review of internal controls, testing of transactions and review of the financial statements in order for the auditors to express an opinion on the financial statements. On the basis of the audit, CLA expressed that the financial statements as of June 30, 2021 present fairly, in all material respects, the financial position of the City of Lancaster. In addition to the financial statements, the auditors also issued an Audit Communication Letter, Government Auditing Standards Letter, and an Appropriations Limit Letter. The purpose of the Audit Communication Letter (attached) is to communicate significant audit matters (if any) to the City Council. No significant audit matters were identified as a result of the audit procedures. The purpose of the Government Letter (attached) is to communicate the auditor’s report on internal control over financial matters. Weaknesses identified in the letter are the result of changes in the audit requirements of the firm and a corrective action plan has been implemented to address the areas noted for improvement. The purpose of the Appropriations Limit Letter (attached) is to communicate any exceptions to the Appropriations Limit. No exceptions were noted.
Attachments:
City of Lancaster Annual Financial Report for Fiscal Year Ending June 30, 2021 Audit Communication Letter dated May 20, 2022
Government Auditing Standards Letter dated May 20, 2022 Appropriations Limit Letter dated May 20, 2022
CC 9
06/28/2022
JC
CITY OF LANCASTER, CALIFORNIA
APPROPRIATIONS LIMIT WORKSHEET NO. 6
INDEPENDENT ACCOUNTANTS’ REPORT
ON AGREED-UPON PROCEDURES APPLIED TO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2021
INDEPENDENT ACCOUNTANTS’ REPORT
ON APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and
Members of the City Council
of the City of Lancaster
Lancaster, California
We have performed the procedures enumera ted below on the accomp anying Appropriations Limit Worksheet No. 6 of the City of Lancaster, California, (the “City”) for the year ended June 30, 2021. The City’s management is responsible for the Appropriations Limit Worksheet No. 6.
The City and the Lea gue of California Cities (as presented in the League publication entitled "Article XIII-B Appropriations Limit Uniform Guidelines") have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the re quirements of Section 1.5 of Article XIII-B of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of t his report and may not meet the needs of all users of this report and, as such, use rs are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
a. We obtai ned the completed Appropriations Limit Worksheet No. 6 f or the year ended June 30, 2021, and compared the limit and annual adjustment factors included in that worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council.
We also compa red the populati on a nd inflation options included in th e aforementioned worksheet to those that were selected by a recorded vote of the City Council.
No exceptions were noted as a result of our performing this procedure. b. For the Appropriations Limit Worksheet No. 6, w e added last year’s limit to the to tal adjustments, and compared the resulting amount to this year’s limit. We also recalculated the adjustment factor and the adjustment for inflation and population, and compared the results to the amounts on Worksheet No. 6.
No exceptions were noted as a result of our performing this procedure. c. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limi t adopted by the City Council for the prior year.
No exceptions were noted as a result of our performing this procedure.
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
CliftonLarsonAllen LLP
CLAconnect.com
City Council
City of Lancaster
Lancaster, California
(3)
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants . We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanyin g Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be indepe ndent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management o f the City and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Irvine, California
May 20, 2022
CITY OF LANCASTER
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Appropriations Limit Worksheet No. 6. (4)
Appropriations Limit for Fiscal Year Ended June 30, 2020 (see Note 2) 205,984,165$ Adjustments Factors for the Fiscal Year Ended June 30, 2021 (see Note 2):
Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor
1.0373000 1.0010000 1.0383373 x 0.0383373
Adjustment for Inflation and Population 7,896,877
Other Adjustments (Note 5) -
Total Adjustments 7,896,877
Appropriations Limit for Fiscal Year Ended June 30, 2021 213,881,042$
CITY OF LANCASTER
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2021
(5)
NOTE 1 PURPOSE OF AGREED-UPON PROCEDURES
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1 , 1990, under Section
1.5 of Article XIIIB, t he annual calculation of the appropriations limit is subject t o agreed- upon procedures in connection with the annual audit.
NOTE 2 METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1 990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.
NOTE 3 INFLATION FACTORS
A Californ ia governmental agency may adjust i ts appropriations limit by either the percentage change in California per capita personal income from the preceding year (which is supplied by the State Department o f Finance), or the percentage change in the local assessment roll from the preceding year due to the change of loc al n onresidential construction. The factor adopted by th e City of Lancaster (the “City”) for fiscal year 2020- 2021 represents the percentage change in California per capita personal income from the preceding year.
NOTE 4 POPULATION FACTORS
A California governm ental a gency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual per centage change in population in the County where the jurisdi ction is located. The factor adopted by the City for fiscal year 2020-2021 represents the annual percentage change in the populati on for the City.
NOTE 5 OTHER ADJUSTMENTS
A California governmental agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of res ponsibility for municipal services to, or from, another governmental agency or private entit y. The City had no such adjustments for the year ended June 30, 2021.
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
CliftonLarsonAllen LLP
CLAconnect.com
Honorable City Council
City of Lancaster
Lancaster
, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Lancaster (the City) as of and for the year ended June 30, 2021, and have issued our report thereon dated May 20, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards , as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit.
Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Lancaster are described in Note 1 to the financial statements.
As described in Note 1D, the City implemented the Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in fiscal year 2020-2021 by reclassifying agency funds to custodial funds. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the statement of changes in fiduciary net position as an increase in net position of $392,875.
We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
The annual required contributions, pension expense, net pension liability and corr esponding
deferred outflows of resources and
deferred inflows of resources for th e City’s defined benefit plans with
CalPERS and PARS are based on actuarial valuations provided by CalPERS and a third-party consultant, respectively.
The actuarially determined contribution, Other Postemployment Benefit (OPEB) expense, net OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s
OPEB plans are based on actuarial valuations provided by a third-party consultant.
Honorable City Council
City of Lancaster
Management’s estimate for claims payable liabilities related to general liability are based on estimates by the claims administrators and actuarial valuation provided by a third-party consultant.
We evaluate
d the key factors and assumptions used to develop these estimates in determining that they were reasonable in relation to the financial statements taken as a whole.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of the retirement commitments reported in Note 8 to the financial statements.
The disclosure of the OPEB commitments reported in Note 9 to the financial statements.
The disclosure of the claims liabilities reported in Note 13 to the financial statements.
The disclosure regarding Lancaster Choice Energy purchase commitments reported in Note 16 to the financial statements.
The financia
l statement disclosures are neutral, consistent, and clear.
Significant unusual transactions
We identified no significant unusual transactions.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
Corrected misstatements
The following material misstatements detected as a result of audit procedures were corrected by management:
An adjustment was made to record amortization expense for the Power Authority purchased power.
An adjustment was made to adjust the grant receivable related to the American Rescue Plan Act grant that did not have matching allowable expenditures as of June 30, 2021.
Honorable City Council
City of Lancaster
An adjustment was made to restate fund balance as of the beginning of the year to write down land held for resale as a result of a lower of cost or market comparison and for land tr ansferred from the Ge
neral Fund, Lancaster Housing Authority, and Successor Agency of the Former RDA to governmental activitie
s capital assets as of July 1, 2020.
An adjustment was made to increase the allowance for doubtful accounts for uncollectib le receivable
s.
An adjustment was made to remove unearned revenue and record revenue for taxes collected for transportation funds that did not have any eligibility restrictions.
Disagreements with management
For purposes of this co
mmunication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the management representation letter dated May 20, 2022.
Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.
Other information in documents containing audited financial statements With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We com pared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.
Honorable City Council
City of Lancaster
With respect to the combining and individual nonmajor fund financial statements and schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplem entary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated May 20, 2022.
The introductory and statistical sections accom panying the financial statements, which are the responsibility of management, were prepared for purpos es of additional analysis and are not a required part of the financial statements. Such information was not subjected to the auditing procedures applied in the audit of the financial statements, and, accordingly, we did not express an opinion or provide any assurance on it.
* * *
This communication is intended solely for the information and use of the city council and management of the City of Lancaster and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Irvine, California
May 20, 2022
UNCORRECTED ADJUSTMENTS
Description Assets Liabilities
Fund Balance /
Net Assets
Net
Expense/Revenue
and Change in
Net Assets /
Fund Balance
Net current year misstatements (Iron Curtain Method) - - - - Net prior year misstatements - - (238,859) 238,859 Combined current and prior year misstatements (Rollover Method) -$ - $ (238,859)$ 238,859 $ Financial statement totals 86,205,564$ 23,705,701 $ Current year misstatement as a % of financial statement totals (Iron Curtain Method)
Current and prior year misstatement as a % of financial statement totals (Rollover Method) 0% 1%
Effect of misstatements on:
Lancaster, City of
SUMMARY OF UNCORRECTED MISSTATEMENTS - AUDIT
Year Ended June 30, 2021
General Fund
UNCORRECTED ADJUSTMENTS
Description Assets Liabilities
Fund Balance /
Net Assets
Net
Expense/Revenue
and Change in
Net Assets /
Fund Balance
Net current year misstatements (Iron Curtain Method) - - - - Net prior year misstatements - - 225,653 (225,653) Combined current and prior year misstatements (Rollover Method) -$ - $ 225,653$ (225,653) $ Financial statement totals 5,104,191$ (1,301,484) $ Current year misstatement as a % of financial statement totals (Iron Curtain Method)
Current and prior year misstatement as a % of financial statement totals (Rollover Method) 4% 17%
SUMMARY OF UNCORRECTED MISSTATEMENTS - AUDIT
Lancaster, City of
Opinion Unit #2 (Lancaster Choice Energy)
Year Ended June 30, 2021
Effect of misstatements on:
UNCORRECTED ADJUSTMENTS
Description Assets Liabilities
Fund Balance /
Net Assets
Net
Expense/Revenue
and Change in
Net Assets /
Fund Balance
Net current year misstatements (Iron Curtain Method) - - - - Net prior year misstatements - - (33,215) 33,215 Combined current and prior year misstatements (Rollover Method) -$ - $ (33,215)$ 33,215 $ Financial statement totals (162,080,628)$ 28,868,090 $ Current year misstatement as a % of financial statement totals (Iron Curtain Method)
Current and prior year misstatement as a % of financial statement totals (Rollover Method) 0% 0%
SUMMARY OF UNCORRECTED MISSTATEMENTS - AUDIT
Lancaster, City of
Opinion Unit #3 (Other Aggregate)
Year Ended June 30, 2021
Effect of misstatements on:
UNCORRECTED ADJUSTMENTS
Description Assets Liabilities
Fund Balance /
Net Assets
Net
Expense/Revenue
and Change in
Net Assets /
Fund Balance
Net current year misstatements (Iron Curtain Method) - - - - Net prior year misstatements - - 225,653 (225,653) Combined current and prior year misstatements (Rollover Method) -$ - $ 225,653$ (225,653) $ Financial statement totals 5,762,437$ (1,287,129) $ Current year misstatement as a % of financial statement totals (Iron Curtain Method)
Current and prior year misstatement as a % of financial statement totals (Rollover Method) 4% 18%
SUMMARY OF UNCORRECTED MISSTATEMENTS - AUDIT
Lancaster, City of
Opinion Unit #4 (Business Type Activities)
Year Ended June 30, 2021
Effect of misstatements on:
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
CliftonLarsonAllen LLP
CLAconnect.com
INDEP
ENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council
City of Lancaster
Lancaster, California
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 City of Lancaster, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City of Lancaster’s basic financial statements, and have issued our report thereon dated May 20, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Lancaster’s internal control over financial reporting (internal control) as a basis for designing 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 City of Lancaster’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Lancaster’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Honorable Mayor and City Council
City of Lancaster
Our consideration of internal control was for the limited purpose described in the first paragraph in this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2021-001 and 2021-002 that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Lancaster’s financial statements are free from 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 financial statements. 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.
City of Lancaster’s Response to Findings
The City's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Irvine, California
May 20, 2022
Honorable Mayor and City Council
City of Lancaster
City of Lancaster
Schedule of Findings and Responses
Year Ended June 30, 2021
2021– 001 – Land Held for Resale
Type of Finding: Material Weakness in Internal Control over Financial Reporting
Condition: During our review of land held for resale, we noted the carrying value of these assets exceeded their market value upon reviewing the City’s mark-to-market comparison, land used for general government purposes was incorrectly reported as land held for resale and land sold in prior years was not removed from the general ledger.
Criteria or specific requirement : Land held for resale should be reported at the lower of cost or market, land used for general government purpose should not be reported as land held for resale and land sold in prior years should be removed from the general ledger.
Effect: Land held for resale was approximately overstated by approximately $6,060,000 in the governmental funds based on a mark-to-market comparison and the transfer to governmental activities capital assets. The Successor Agency recorded land held for resale of approximately $1,670,000 as opposed to the entities that are responsible for the maintenance of the assets. This resulted in a restatement of approximately $7,730,000.
Cause: The City has historically recorded land held for resale at cost and not reviewed the listing of land held for resale for proper classification. During the fiscal year the City completed an analysis of land held for resale to ensure it was properly classified and recorded at the lower of cost or market.
Repeat finding: No.
Recommendation: We recommend the City establish and implement procedures to review the City’s land held for resale on an annual basis to ensure the carrying value is reported at the lower of cost or market. In addition, the City should review whether these properties are for governmental use and take appropriate actions to transfer them to the City or Agency that will be responsible for maintaining the infrastructure assets.
View of responsible officials and planned corrective actions : The City acknowledges the finding and agrees to the need for further corrective action. The City has historically held these land assets as held for resale, with the assumption the properties would be sold at carrying cost or at an appraised value conducted at the time of sale. In a review of individual properties and in discussion with auditors, it was agreed that some of the properties in question would be more appropriately classified as a land asset due to the property type and current utilization. Additionally, Finance staff will work in tandem with Housing to ensure a biannual review of the property values is conducted.
Honorable Mayor and City Council
City of Lancaster
2021– 002 – Year-end Closing Process
Type of Finding : Material Weakness in Internal Control over Financial Reporting over receivables, fund balance and interfund transactions
Condition: Audit adjustments were proposed to (a) reduce grant receivable to amount of reimbursable expenditures, (b) increase the allowance for uncollectible accounts receivable, (c) adjust unavailable revenue to revenues not to be collected within the City’s availability period and (d) to remove unearned revenue for taxes collected for transportation purposes that were not subject to eligibility requirements (e) remove adjustments made directly to fund balance and (f) correct interfund transfers. This resulted in excess time to revise reconciliations and update audit working papers.
Criteria or specific requirement : The general ledger should be supported by accurate subsidiary schedules available at the time of the annual financial statement audit.
Effect: The result of the identified discrepancies were overstatement/understatement of several account balances including accounts receivable, unavailable revenue, unearned revenue, fund balance and interfund transfers
Cause: The City had large turnover in staffing which caused delays in the reporting process.
Repeat finding: This is a repeat finding from prior year.
Recommendation: The year-end closing process should proceed more quickly by developing a year- end closing schedule that addresses each necessary task, who will perform each task, when the completion of each task is to occur and when such task has been completed and reviewed. The timing of specific tasks should be coordinated with the timing of management’s or the auditors’ need for the information. This year-end closing schedule should be monitored regularly to ensure that the tasks are being completed in a timely manner and the results of each task are in agreement with the related general ledger account balances.
View of responsible officials and planned corrective actions : The City acknowledges the finding and agrees to further implement on going improvement pl ans to the fiscal year close process. After a large turnover in senior staff, the new staff has worked diligently to clean up processes and improve overall accuracy of the financial statements. This improvement plan included changing processes, increasing oversight, and utilization of approval staff to assist in the closing process, which has created a temporary burden on staff resources. City Finance staff will be given a record of reconciliation assignments and one central point of contact will be utilized to help ensure effective communication.
The City will also be reviewing best practices over the next two fiscal years and intends to include several improvements as a result of the research. Additionally, the City has procured a new Enterprise Resource Planning (ERP) system that will help to automate and streamline the year-end closing procedures as well as make the reporting of information out of the system less cumbersome and more accurate.
CITY OF LANCASTER
COMPREHENSIVE ANNUAL FINANCIAL REPORT
WITH REPORT ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2021
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL I
PRINCIPAL CITY OFFICIALS VII
ORGANIZATION CHART VIII
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 4
FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 14
STATEMENT OF ACTIVITIES 15
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
BALANCE SHEET 17
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 19
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 20
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO
THE STATEMENT OF ACTIVITIES 22
BUDGETARY COMPARISON STATEMENTS
GENERAL FUND 23
LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND 24
TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL
REVENUE FUND 25
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 26
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 27
STATEMENT OF CASH FLOWS 28
FIDUCIARY FUNDS
STATEMENT OF NET POSITION 29
STATEMENT OF CHANGES IN NET POSITION 30
NOTES TO BASIC FINANCIAL STATEMENTS 31
REQUIRED SUPPLEMENTARY INFORMATION
CALPERS PENSION PLANS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 89
SCHEDULE OF CONTRIBUTIONS 91
PARS PENSION PLAN
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 93
SCHEDULE OF CONTRIBUTIONS 95
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS 97
SCHEDULE OF CONTRIBUTIONS 98
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 101
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 109
OTHER SPECIAL REVENUE FUNDS
SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX 117
LANDSCAPE MAINTENANCE DISTRICT 118
HOUSING AND COMMUNITY DEVELOPMENT 119
HOME PROGRAM 120
PROPOSITION A 121
BIKEWAY IMPROVEMENT 122
PROPOSITION C 123
FEDERAL GRANTS 124
STATE GRANTS 125
PARKS DEVELOPMENT 126
DEVELOPER FEES - SIGNALS 127
DEVELOPER FEES - DRAINAGE 128
RECYCLED WATER 129
BIOLOGICAL IMPACT FEES 130
TRAFFIC IMPACT FEES 131
AQMD 132
LANCASTER DRAINAGE MAINTENANCE DISTRICT 133
MISCELLANEOUS GRANTS 134
TRAFFIC SAFETY 135
LA COUNTY REIMBURSEMENT 136
MTA GRANT 137
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
URBAN STRUCTURE PROGRAM 138
SEWER MAINTENANCE DISTRICT 139
PROPOSITION 1B 140
PROPOSITION 42 141
MEASURE R 142
MEASURE M 143
LANCASTER LIGHTING DISTRICT 144
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 145
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 147
STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS 150
FINANCIAL TRENDS
NET POSITION BY COMPONENT 151
CHANGES IN NET POSITION 152
FUND BALANCES, GOVERNMENTAL FUNDS 155
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS 156
REVENUE CAPACITY
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS 157
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 158
DIRECT AND OVERLAPPING PROPERTY TAX RATES 159
PRINCIPAL PROPERTY TAX PAYERS 160
PROPERTY TAX LEVIES AND COLLECTIONS 161
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 162
RATIOS OF GENERAL BONDED DEBT OUTSTANDING 163
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 164 LEGAL DEBT MARGIN INFORMATION 165
PLEDGED-REVENUE COVERAGE 166
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 167
TOP 10 PRINCIPAL EMPLOYERS 168
OPERATING INFORMATION
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 169 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM 170
INTRODUCTORY SECTION
(i)
(ii)
(iii)
(iv)
(v)
(vi)
CITY OF LANCASTER
PRINCIPAL CITY OFFICIALS
YEAR ENDED JUNE 30, 2021
(vii)
CITY COUNCIL MEMBERS
Term Expires
R. Rex Parris Mayor 2024
Marvin E. Crist Vice Mayor 2022
Darrell Dorris Council Member 2024
Kenneth G. Mann Council Member 2024
Raj Malhi Council Member 2022
CITY OFFICIALS
Jason D. Caudle City Manager
Allison E. Burns City Attorney
Trolis Niebla Assistant City Manager
Jeff Hogan Development Services Director
George Harris Finance and Information Technology Director
Sonya Patterson Parks, Arts, Recreati on, and Community Services Director
Lee D’Errico Public Safety Director
CITY OF LANCASTER
ORGANIZATION CHART
YEAR ENDED JUNE 30, 2021
(viii)
FINANCIAL SECTION
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Lancaster
Lancaster, California
Report on the Financial Statements
We have audited the accompanying financial stat ements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lancaster (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s bas ic 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.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 auditors consider 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.
Honorable Mayor and Members of the City Council
City of Lancaster
(2)
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 of Lancaster as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons for the General Fund, the Lancaster Housing Authority Special Revenue Fund, and the Transportation Development Authority Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matters
As discussed in Note 21 to the financial statements, the City implemented the Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities , in fiscal year 2020-2021, which resulted in a restatement. Also, as described in Note 21, the City restated the net position/fund balance of the City’s General Fund, Lancaster Housing Authority Special Revenue Fund, and Successor Agency of the Former RDA, a Private-Purpose Trust Fund for the adjustment of long- term assets. Our opinions are not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of changes in the net pension liability and related ratios and the schedules of contributions for the CalPERS and PARS pensions plans, and the schedule of changes in net OPEB liability and relat ed ratios, the schedule of contributions - OPEB identified as required supplementary Information in the accompanying table of contents, be presented to supplement the financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the required supplementary 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 introductory section, combining statements and individual fund schedul es (supplementary information), and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Honorable Mayor and Members of the City Council
City of Lancaster
(3)
The supplementary information is the responsibilit y of management and was derived from, and relates 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 supplementary information is 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 financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated May 20, 2022, 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s 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.
CliftonLarsonAllen LLP
Irvine, California
May 20, 2022
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(4)
As management of the City of Lancaster, we offer readers of the City of Lancaster's financial statements this narrative overview and analysis of the financial activities of the City of Lancaster for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal.
FINANCIAL HIGHLIGHTS
The General Fund revenues were $98,777,680
The cost of the General Fund was $82,650,739
The General Fund reported revenues in excess of expenditures of $16,126,941 For the General Fund, actual resources available for appropriation (revenue inflows and fund balance) was greater than final budget by $23,663,524; while actual appropriations (outflows) were less than the final budget by $2,573,479
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Lancaster's basic financial statements. The City of Lancaster's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Lancaster's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City of Lancaster's assets, deferred outflows, liabilities, and deferred inflow of resources with the net difference reported as net position.
Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Lancaster is improving or deteriorating.
The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Lancaster that are principally supported by taxes and intergovernment al revenues (government activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Lancaster include General Government, Public Safety, Community Development, Parks, Recreation and Arts, Development Services, and Housing and Neighborhood Revitalization. The business-type activities include the Lancaster Power Authority, Lancaster Choice Energy and the California Choice Energy Authority.
The government-wide financial statements include the bl ending of separate legal entities: Lancaster Housing Authority, Lancaster Community Services Foundation, Lancaster Financing Authority, Lancaster Power Authority, and California Choice E nergy Authority. Although legally separate, these "component units" are important because the City of Lancaster is financially accountable for them.
Separate statements are provided for the fiduciary activities of the Agency Funds and Private Purpose Fund of the Lancaster Successor Agency.
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(5)
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Lancaster, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Lancaster can be divided into three categories: Governmental Funds, Proprietary Funds and Fiduciary Funds.
Governmental Funds. Governmental Funds are used to account for essentially the same functions reported as governmental activities in the govern ment-wide financial statements. However, unlike the government-wide statements, governmental fund financ ial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of Governmental Funds is narrower than that of the government-wide financial statements, it is useful to compare the inform ation presented for Governmental Funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Lancaster maintains thirty-six indivi dual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, one debt service fund, and two special revenue funds, all of which are considered to be major funds. Data from the other thirty-two governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in t he form of combining statements elsewhere in this report.
The City of Lancaster adopts an annual budget for its governmental funds. A fiscal year (FY) 20/21 budgetary comparison statement has been provided for each individual fund to demonstrate compliance with its budget appropriations.
Proprietary Funds. A Proprietary or Enterprise Fund is used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Lancaster uses enterprise funds to account for the activities of the Lancaster Power Authority, Lancaster Choice Energy, and California Choice Energy Authority.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for the Lancaster Power Authority, Lancaster Choice Energy, and California Choice Energy Authority.
Fiduciary Funds. Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Lancaster's own programs.
Notes to the 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 statement.
Combining Statements. The combining statements referred to earlier in connection with non-major governmental are presented immediately following the notes.
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(6)
Government-wide Financial Analysis
Our analysis focuses on the net position and changes in net position of the City’s governmental activities.
Governmental Activities. Governmental activities increased the City of Lancaster's net position by $22,083,638
State Shared Sales Taxes performed significantly better than anticipated given the continuing pandemic, exceeding previous year revenues by $9,843,747; 45% increase in year over year As a result of closures and restrictions due to COVID, the City was unable to accommodate many of its Parks, Recreations and Arts programing, resulting in a $1,898,437 loss in charges for services. It is anticipated that as restrictions ease, programing will begin to return and revenues closer to historical averages will be realized.
Fiscal Year
2020 2021
Expenses
General Government $ 34,227,243 $ 35,691,615 Public Safety 31,515,319 32,230,935
Community Development 657,480 592,696
Parks, Recreation and Arts 18,323,761 17,820,781 Development Services 53,960,990 50,239,507
Housing and Neighborhood Revitalization 1,850,333 2,056,358 Interest on long-term debt 2,315,735 3,119,743
Total primary governmental activities expenses $ 142,850,861 $ 141,751,635
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(7)
Program Revenues (see Schedule 3)
Governmental activities:
Charges for services:
General Government $ 139,214 $ 3,335,332 Public Safety 853,945 2,525,888
Community Development 597,666 430,021 Parks, Recreation and Arts 2,657,974 759,537 Development Services 16,463,307 18,297,602 Housing and Neighborhood Revitalization 1,042,728 290.464 Operating grants and contributions 32,101,550 48,818,504 Capital grants and contributions 13,207,647 14,693,720 Total governmental activities program revenues $ 67,064,031 $ 89,151,068
Governmental activities $ (75,786,830) $ (52,600,567)
Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes 24,296,937 26,148,244
Transient occupancy taxes 1,965,102 2,012,943 Intergovernmental - state shared sales taxes 21,961,474 31,805,221 Franchise taxes 7,663,335 7,731,919
Business licenses taxes 722,837 1,223,982 Other taxes 1,279,397 1,315,822
Intergovernmental 127,902 118,596 Investment Earnings 4,696,743 1,391,387 Miscellaneous 4,138,146 1,546,901
Gain on sale of land held for resale 888,441 513,340 Transfers 893,410 875,850
Total governmental activities $ 68,633,724 $ 74,684,205 Change in Net Assets
Governmental activities $ (7,153,106) $ 22,083,638
Business-Type Activities. Business-type activities decreased the City of Lancaster’s net position by $1,287,129 primarily due to increased power purchases , many as required due to increased resource adequacy requirements. Revenues remained relatively flat from the prior year due to decreased collections as a result of the pandemic utility shut-off moratorium.
2020 2021
Expenses
Business-type activities:
Lancaster Power Authority $ 1,841,253 $ 1,825,146 Lancaster Choice Energy 39,741,272 47,013,871 California Choice Energy Authority 5,650,866 6,033,722 Total business-type activities expenses 47,233,391 54,872,739
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(8)
Program Revenues (see Schedule 3)
Business-type activities:
Charges for services:
Lancaster Power Authority $ 1,545,531 $ 1,896,121 Lancaster Choice Energy 43,397,265 46,576,991 California Choice Energy Authority 5,438,167 5,987,488 Total business-type activities program revenues $ 50,380,963 $ 54,460,600
Business-type activities: 3,147,572 (412,139)
Other Changes in Net Assets
Business-type activities:
Investment Earnings $ 34,247 $ 860 Miscellaneous 2,258,254 - Transfers (893,410) (875,850) Total business-type activities $ 1,399,091 $ (974,990)
Total Primary Government Revenues, Contributions,
and Transfers $ 51,780,854 $ 53,585,610
Change in Net Assets
Business-type activities 4,546,663 (1,287,129)
The following presents the cost of each of the City’s five largest programs – general government, public safety, parks, recreation and arts, development services, and community development - as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions. As a result of the on-going pandemic shut-downs and restrictions, many city services were requited to continue without the ability to generate revenue. As a result, many activities placed a greater burden on tax-payers for the fiscal year.
The net cost of services indicates that the overall cost of government is more than the revenues generated to support it. The City is not fully recovering the cost of these services with program revenues from user fees and other contributions. See the Statement of Activities for further detail on program revenues and general revenues.
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(9)
CITY OF LANCASTER- COST OF SERVICES
(in thousands)
City of Lancaster Governmental Activities
(in Thousands)
City of Lancaster Governmental Activities
REVENUE & EXPENSE BY SOURCE
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
General
Government
Public Safety Community
Development
Parks,
Recreation and
Arts
Development
Services
Housing and
Neighborhood
Revitalization
Revenue Expense
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City of Lancaster uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The focus of the City of Lancaster's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lancaster's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
Total Cost Net Cost
of Services of Services
2021 2021
General Government $ 35,692 $ (15,957) Public Safety 32,231 (28,570) Community Development 593 1,843 Parks, Recreation and Arts 17,821 (16,429) Development Services 50,354 11,295 Housing and Neighborhood
Revitalization 2,056 (1,663)
Totals $ 138,747 $ (49,481)
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(10)
As of the end of the current fiscal year, the City of Lancaster’s governmental funds reported combined ending fund balances of $270,914,050. This is an increase of $29,247,553 from last fiscal year mostly due to an increase in sales taxes as a result of in creased economic activity as well as the passing of Measure LC.
The General Fund is the chief operating fund of the City of Lancaster. At the end of the current fiscal year, including transfers, the General Fund reported revenues and transfers-in in excess of expenditures and transfers-out of $86,205,564. This increase in fund balance is due primarily to increases in sales tax revenue, which includes the passing and collection of the Measure LC sales taxes and one-time intergovernmental revenues as a result of COVID stimulus.
The Transportation Development Authority Fund is a special revenue fund used for local street and road improvements, congestions relief and traffic safety. At the end of the current fiscal year, Transportation Development Authority Fund reported expenditures and transfers out in excess of revenues and transfer-in of $1,343,186.
The Lancaster Housing Authority Fund is a special revenue fund used to capture activities performed by the Lancaster Housing Authority. At the end of the current fiscal year, the Lancaster Housing Authority Fund reported revenues and transfer-in in excess expenditures and transfers-out of $84,635,788. The services provided to the community by the Housing and Neighborhood revitalization staff will yield beautiful, family-friendly, new housing tracts in formerly blighted areas of the City.
The Lancaster Financing Authority is a debt service fund used to account for the update for debt service fund. At the end of the current fiscal year, Lancaster Financing Authority Fund reported revenues and transfers-in in excess of expenditures and transfer-out of $56,050,380.
Proprietary Funds. The City of Lancaster’s proprietary funds provide the same type of information found in the government-wide financial statement, but in more detail. The City of Lancaster has three funds of this type: Lancaster Power Authority, Lancaster Choice Energy, and California Choice Energy Authority.
The net position of the Lancaster Power Authority, Lancaster Choice Energy, and California Choice Energy Authority at the end of the year was $5,762,437, an decrease over last year of $1,287,129. This is primarily due to higher power purchases as a result of increased resource adequacy requirements and delayed collections as a result of the moratorium on utility shut-offs during the pandemic.
GENERAL FUND BUDGETARY HIGHLIGHTS
The actual amount of expenditures for the General Fund at year-end were $2,573,479 less than the final budget to include transfers. This variance is mainly a result of project delays resulting from COVID.
The global pandemic had an unprecedented impact on city operations. However, it should be noted that Management works very hard to control expenditure s, ensuring the city is fiscally sound. Managers citywide diligently tracked division and department al budgets to ensure overruns did not occur.
Additionally, the City remained conservative in its revenue estimates as a result of projected losses due to the ongoing COVID 19 restrictions. Sales taxes well exceeded expectations and an additional flow of resources from the Federal Government in the form of the CARES Act and ARPA stimulus also resulted in large positive variances from budget. As a result of the decreased spending and increased revenues, the city was still able to see a net positive $26,237,003 in actuals over appropriations.
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(11)
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. At the end of FY 2021, the City had $868.2 million invested in a broad range of capital assets, including land, buildings, infrastructure, equipment, and intangible assets net of accumulated depreciation.
The City’s Capital Improvement Plan requested $78 million in new capital projects through fiscal 2021- 22 on new projects. Funding will come from current fund balances and projected revenues. The most significant projects include SR 14 interchange projects, City Hall facelift, pavement management program, and other citywide facility upgrades.
CAPITAL ASSETS
(in Thousands)
Note 5 provides a detailed analysis of the Capital Assets.
Long-term Debt. At the end of the current fiscal year, the City of Lancaster’s total long-term debt decreased by $9.7 Million from the prior year. This is due to the payments against outstanding debt without the issuance of new debt. As of June 30, 2021, the City of Lancaster had accrued employee benefits outstanding of $3,434,822.
The City’s AA credit rating remained unchanged for FY 20/21.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
On June 22, 2021, the City Council adopted and approved the budget for FY 21/22 along with the Five- Year Capital Improvement Program. Appropriations (including transfers) of $270.8 million were adopted for the 21/22 fiscal year. Adequate resources are available to fund the proposed expenditures. Consistent with the City’s policy, General Fund operating revenues fully cover on-going operating expenses with Fund Balance funding one-time expenses. The ending General Fund balance exceeds the City’s policy minimum of 35% of operating expenditures. This is split into Working Capital, Emergency Operational, Emergency Response, and Business Opportunity/Investment reserves. The City of Lancaster is revised the reserve policy as of the FY 2021/22 budget to better align with its long term sustainability plan.
Budgetary revenue estimates have been prepared using a variety of methods. Certain revenue sources, such as federal and state grants and transportation funds are relatively fixed and known. Others, such as sales tax and development related revenues are more difficult to estimate. In those cases, a cautiously optimistic economic outlook has been assumed.
Governmental
Business-
type Total Capital
Activities Activities Assets
Land $ 29,796
- $ 29,796
Structures and
Improvements 76,457
- 76,457
Furniture and Equipment 17,325
- 17,325
Infrastructure 1,727,869
- 1,727,869
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
(12)
Current economic conditions allow the City to maintain core services, and to maintain current levels of public safety. However, prudent long-term fiscal planning dictates that we remain conservative, focus on the highest priorities, and fund only those enhancements we can sustain financially.
The two largest sources of revenue for the City’s Funds are property tax and sales tax. Taxes overall represent 27.0% of total revenues for the upcoming fiscal year. The revenue and expenditure projections for development related activity are based upon local and regional economic forecasts and trends. Overall, the budget is based on the information supplied by outside agencies, such as the State Department of Finance, California Department of Tax & Fee Administration, and the Los Angeles County Assessor's Office, to predict revenues. The revenue and expenditure projections are intended to serve as a guide in planning for the future.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens , taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Nike Noack, Senior Finance Manager, at the City of Lancaster, 44933 Fern Avenue, Lancaster, CA 93534, or by phone at 661-723-6135.
(13)
FINANCIAL STATEMENTS
CITY OF LANCASTER
STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(14)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 80,167,447 $ 6,053,724 $ 86,221,171 $ Cash and Investments - Held Separately by CCEA - 801,133 801,133 Receivables:
Accounts 8,758,673 12,403,420 21,162,093 Taxes 10,203,533 - 10,203,533 Accrued Interest 226,377 - 226,377 Due From Other Governments 24,485,367 421,697 24,907,064 Notes and Loans 5,238,376 - 5,238,376 Deposits - 147,000 147,000 Prepaid Items 115,543 336,292 451,835 Internal Balances 2,667,878 (2,667,878) - Inventories 26,416 - 26,416 Land Held for Resale 49,540,837 - 49,540,837 Advances to Successor Agency 67,552,256 - 67,552,256 Restricted Assets:
Cash and Investments 71,012,638 2,270,588 73,283,226 Capital Assets:
Nondepreciable 85,611,478 - 85,611,478 Depreciable 782,581,938 14,561,800 797,143,738 Total Assets 1,188,188,757 34,327,776 1,222,516,533
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts on Pension Plan 9,246,863 - 9,246,863 Deferred Amounts on OPEB 2,291,367 - 2,291,367 Total Deferred Outflows of Resources 11,538,230 - 11,538,230
LIABILITIES
Accounts Payable 15,361,653 6,691,149 22,052,802 Accrued Liabilities 1,837,107 54,090 1,891,197 Accrued Interest 414,888 142,232 557,120 Unearned Revenues 2,867,176 311,225 3,178,401 Deposits Payable 1,263,928 1,083,000 2,346,928 Noncurrent Liabilities:
Due Within One Year - Other 4,917,619 625,000 5,542,619 Due in More than One Year:
Other 84,466,061 19,658,643 104,124,704 Net Pension Liability 67,415,115 - 67,415,115 Net OPEB Liability 15,971,711 - 15,971,711 Total Liabilities 194,515,258 28,565,339 223,080,597
DEFERRED INFLOWS OF RESOURCES
Deferred Amounts on OPEB 1,415,064 - 1,415,064 Total Deferred Inflows of Resources 1,415,064 - 1,415,064
NET POSITION
Net Investment in Capital Assets 845,575,930 (2,899,971) 842,675,959 Restricted for:
Community Development Projects 2,886,763 - 2,886,763 Public Safety 117,568 - 117,568 Parks, Recreation, and Arts 2,946,552 - 2,946,552 Development Services 39,312,364 - 39,312,364 Housing and Neighborhood Revitalization 90,289,538 - 90,289,538 Capital Projects 5,977,368 5,977,368 Unrestricted 16,690,582 8,662,408 25,352,990 Total Net Position 1,003,796,665 $ 5,762,437 $ 1,009,559,102 $
CITY OF LANCASTER
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(15)
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
GOVERNMENTAL ACTIVITIES
General Government 35,691,615 $ 3,335,332 $ 16,399,222 $ - $ Public Safety 32,230,935 2,525,888 1,134,708 - Community Development 592,696 430,021 2,005,906 - Parks, Recreation, and Arts 17,820,781 759,537 632,261 - Development Services 50,239,507 18,297,602 28,543,363 14,693,720 Housing and Neighborhood Revitalization 2,056,358 290,464 103,044 - Interest and Other Charges 3,119,743 - - - Total Governmental Activities 141,751,635 25,638,844 48,818,504 14,693,720
BUSINESS-TYPE ACTIVITIES
Lancaster Power Authority 1,825,146 1,896,121 - - Lancaster Choice Energy 47,013,871 46,576,991 - - California Choice Energy Authority 6,033,722 5,987,488 - - Total Business-Type Activities 54,872,739 54,460,600 - - Total Primary Government 196,624,374 $ 80,099,444 $ 48,818,504 $ 14,693,720 $ Program Revenues
CITY OF LANCASTER
STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(16)
Governmental Business-Type
Functions/Programs Activities Activities Total
GOVERNMENTAL ACTIVITIES
General Government (15,957,061) $ - $ (15,957,061)$ Public Safety (28,570,339) - (28,570,339) Community Development 1,843,231 - 1,843,231 Parks, Recreation, and Arts (16,428,983) - (16,428,983) Development Services 11,295,178 - 11,295,178 Housing and Neighborhood Revitalization (1,662,850) - (1,662,850) Interest and Other Charges (3,119,743) - (3,119,743) Total Governmental Activities (52,600,567) - (52,600,567)
BUSINESS-TYPE ACTIVITIES
Lancaster Power Authority - 70,975 70,975 Lancaster Choice Energy - (436,880) (436,880) California Choice Energy Authority - (46,234) (46,234) Total Business-Type Activities - (412,139) (412,139) Total Primary Government (52,600,567) (412,139) (53,012,706)
GENERAL REVENUES AND TRANSFERS
Taxes:
Property Taxes, Levied for General Purposes 26,148,244 - 26,148,244 Franchise Taxes 7,731,919 - 7,731,919 Transient Occupancy Taxes 2,012,943 - 2,012,943 Business Licenses Taxes 1,223,982 - 1,223,982 Other Taxes 1,315,822 - 1,315,822 Intergovernmental 118,596 - 118,596 Intergovernmental - State Shared Sales Tax 31,805,221 - 31,805,221 Investment Earnings 1,391,387 860 1,392,247 Miscellaneous 1,546,901 - 1,546,901 Gain on Sale of Property 513,340 - 513,340 Transfers 875,850 (875,850) - Total General Revenues and Transfers 74,684,205 (874,990) 73,809,215 CHANGE IN NET POSITION 22,083,638 (1,287,129) 20,796,509 Net Position - Beginning of Year, as Restated 981,713,027 7,049,566 988,762,593 NET POSITION - END OF YEAR 1,003,796,665$ 5,762,437 $ 1,009,559,102 $ Net (Expenses) Revenue and
Primary Government
Changes in Net Position
CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(17)
Debt Service
Fund
Lancaster Transportation Lancaster
Housing Development Financing
General Authority Authority Authority
ASSETS
Pooled Cash and Investments 11,647,352 $ 11,912,489 $ 104,156 $ - $ Receivables:
Accounts 2,619,540 - - - Taxes 9,680,642 - - - Accrued Interest 190,418 - - - Due From Other Governments 10,688,520 - 9,360,979 - Notes and Loans, Net 820,439 3,827,877 - - Prepaid Items 1,050 - - - Due From Other Funds 35,624,019 - - - Inventories 26,416 - - - Land Held for Resale - 49,316,071 - - Advances to Successor Agency 43,442,156 24,110,100 - - Restricted Assets:
Cash and Investments With Fiscal Agents - - - 71,012,638 Total Assets 114,740,552 $ 89,166,537 $ 9,465,135 $ 71,012,638 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 7,666,617 $ 47,335 $ - $ - $ Accrued Liabilities 1,168,155 25,167 - - Unearned Revenues 71,601 - - - Deposits Payable 1,263,928 - - - Due to Other Funds - - 9,171,809 14,962,258 Total Liabilities 10,170,301 72,502 9,171,809 14,962,258
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 18,364,687 4,458,247 1,636,512 -
FUND BALANCES
Nonspendable:
Notes and Loans 820,439 - - - Prepaid Items 1,050 - - - Inventories 26,416 - - - Advances to Successor Agency 25,609,169 - - - Restricted:
Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services - - - - Debt Service - - - - Housing and Neighborhood Revitalization - 84,635,788 - - Capital Projects - - - 56,050,380 Committed:
Contingency Reserve 8,083,847 - - - Assigned:
Employee Benefits 3,434,823 - - - Legal Claims 3,113,000 - - - Capital Projects 7,585,171 - - - Unassigned 37,531,649 - (1,343,186) - Total Fund Balances (Deficit) 86,205,564 84,635,788 (1,343,186) 56,050,380 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 114,740,552 $ 89,166,537 $ 9,465,135 $ 71,012,638 $ Special Revenue Funds
CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(18)
Other Total
Governmental Governmental
Funds Funds
ASSETS
Pooled Cash and Investments 56,503,450$ 80,167,447 $ Receivables:
Accounts 6,139,133 8,758,673
Taxes 522,891 10,203,533
Accrued Interest 35,959 226,377 Due From Other Governments 4,435,868 24,485,367 Notes and Loans, Net 590,060 5,238,376 Prepaid Items 114,493 115,543
Due From Other Funds - 35,624,019 Inventories - 26,416
Land Held for Resale 224,766 49,540,837 Advances to Successor Agency - 67,552,256 Restricted Assets:
Cash and Investments With Fiscal Agents - 71,012,638 Total Assets 68,566,620$ 352,951,482 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 7,647,701$ 15,361,653 $ Accrued Liabilities 643,785 1,837,107 Unearned Revenues 2,795,575 2,867,176 Deposits Payable - 1,263,928 Due to Other Funds 8,822,074 32,956,141 Total Liabilities 19,909,135 54,286,005
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 3,291,981 27,751,427
FUND BALANCES
Nonspendable:
Notes and Loans - 820,439 Prepaid Items 114,493 115,543
Inventories - 26,416
Advances to Successor Agency - 25,609,169 Restricted:
Community Development Projects 2,644,249 2,644,249 Public Safety 117,568 117,568
Parks, Recreation, and Arts 2,946,552 2,946,552 Development Services 39,312,364 39,312,364 Debt Service - -
Housing and Neighborhood Revitalization 1,195,503 85,831,291 Capital Projects - 56,050,380 Committed:
Contingency Reserve - 8,083,847 Assigned:
Employee Benefits - 3,434,823 Legal Claims - 3,113,000 Capital Projects 1,905,548 9,490,719 Unassigned (2,870,773) 33,317,690
Total Fund Balances (Deficit) 45,365,504 270,914,050 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 68,566,620$ 352,951,482 $
CITY OF LANCASTER
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(19)
Fund Balances - Total Governmental Funds 270,914,050$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not current financial resources, and therefore, are not reported in the governmental funds balance sheet:
Capital Assets 1,907,262,241
Accumulated Depreciation (1,039,068,825)
868,193,416
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported. Interest on long-term liabilities is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities, both current and long-term, are reported in the statement of net position. Balances as of June 30, 2021, are:
Bonds, Notes, Loans, and Capital Leases Payable (82,835,858) Claims and Judgments (3,113,000)
Compensated Absences (3,434,822)
(89,383,680)
The net pension liability applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities.
Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities:
Deferred Outflows of Resources 9,246,863
Net Pension Liability (67,415,115)
(58,168,252)
The net OPEB liability applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities.
Deferred outflows of resources and inflows related to OPEB are only reported in the statement of net position, as the changes in these amounts affect only the government-wide statements for governmental activities.
Deferred Outflows of Resources 2,291,367
Deferred Inflows of Resources (1,415,064)
Net OPEB Liability (15,971,711)
(15,095,408)
Accrued interest payable for the current portion of interest due on bonds is not reported in the governmental funds (414,888)
Long-term assets are not available to pay for current period expenditures and, therefore, are reported as deferred inflows of resources in the fund financial statements:
Unavailable Revenues 27,751,427
Net Position of Governmental Activities 1,003,796,665$
CITY OF LANCASTER
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(20)
Debt Service
Fund
Lancaster Transportation Lancaster
Housing Development Financing
General Authority Authority Authority
REVENUES
Taxes 42,460,689 $ - $ - $ - $ Licenses and Permits 7,332,396 - - - Intergovernmental 40,330,617 - 7,726,007 - Charges for Services 794,723 - - - Investment Earnings 389,212 3,149 (828) 53,319 Fines and Forfeitures 535,740 - - - Contributions - - - - Gain From Sale of Land Held for Resale - 472,883 - - Miscellaneous 6,934,303 223,914 1,730 - Total Revenues 98,777,680 699,946 7,726,909 53,319
EXPENDITURES
Current:
General Government 28,827,512 - - - Public Safety 32,319,382 - - - Community Development - - - - Parks, Recreation, and Arts 12,801,400 - - - Development Services 7,795,380 - - - Housing and Neighborhood Revitalization - 956,352 - - Capital Outlay 273,583 9,600 2,475,094 11,246,629 Debt Service:
Principal Retirement 568,876 - - 1,703,111 Interest and Fiscal Charges 64,606 - - 3,032,721 Total Expenditures 82,650,739 965,952 2,475,094 15,982,461
EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES 16,126,941 (266,006) 5,251,815 (15,929,142)
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets 40,457 - - Transfers In 8,681,059 - 186,728 3,550,903 Transfers Out (1,142,756) (532,102) (6,882,104) - Total Other Financing Sources (Uses) 7,578,760 (532,102) (6,695,376) 3,550,903 NET CHANGE IN FUND BALANCES 23,705,701 (798,108) (1,443,561) (12,378,239) Fund Balances - Beginning of Year as Restated 62,499,863 85,433,896 100,375 68,428,619 FUND BALANCES - END OF YEAR 86,205,564$ 84,635,788 $ (1,343,186) $ 56,050,380 $ Special Revenue Funds
CITY OF LANCASTER
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(21)
Other Total
Governmental Governmental
Funds Funds
REVENUES
Taxes 4,421,209$ 46,881,898 $
Licenses and Permits 10,828,307 18,160,703
Intergovernmental 36,528,483 84,585,107
Charges for Services 9,837,262 10,631,985
Investment Earnings 93,176 538,028
Fines and Forfeitures 167,197 702,937
Contributions 8,757 8,757
Gain From Sale of Land Held for Resale - 472,883 Miscellaneous 33,323 7,193,270
Total Revenues 61,917,714 169,175,568
EXPENDITURES
Current:
General Government 2,402,706 31,230,218
Public Safety - 32,319,382
Community Development 490,242 490,242
Parks, Recreation, and Arts 2,591,113 15,392,513 Development Services 14,103,314 21,898,694
Housing and Neighborhood Revitalization 1,100,006 2,056,358 Capital Outlay 16,870,512 30,875,418
Debt Service:
Principal Retirement 783,705 3,055,692
Interest and Fiscal Charges 428,478 3,525,805 Total Expenditures 38,770,076 140,844,322
EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES 23,147,638 28,331,246
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets - 40,457
Transfers In 7,073,440 19,492,130
Transfers Out (10,059,318) (18,616,280)
Total Other Financing Sources (Uses) (2,985,878) 916,307 NET CHANGE IN FUND BALANCES 20,161,760 29,247,553
Fund Balances - Beginning of Year as Restated 25,203,744 241,666,497 FUND BALANCES - END OF YEAR 45,365,504$ 270,914,050 $
CITY OF LANCASTER
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(22)
Net Change in Fund Balances - Total Governmental Funds 29,247,553$ Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital expense in the current period.
Capital Outlays 30,027,290
Contributed Capital Assets 6,324,408
Disposals (199,400)
Depreciation Expense (36,342,081)
(189,783)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.
Principal Payments 3,055,692
Amortization of Bond Premium 382,123
3,437,815
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 the governmental funds.
Change in Accrued Employee Benefits (400,250)
Change in Claims Payable (476,000)
(876,250)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 23,939
OPEB expenditures reported in the governmental funds includes the actuarial determined contributions. In the Statement of Activities, OPEB expense includes the change in the net OPEB liability and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. (313,872) Pension expenditures reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense included the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (2,989,162) Revenues are deferred in the governmental funds when they are not received soon after year-end to be considered to be available. The availability criteria does not apply to the Statement of Net Position and therefore the revenue is recognized. (6,256,602) Change in Net Position of Governmental Activities 22,083,638$
CITY OF LANCASTER
BUDGETARY COMPARISON STATEMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(23)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE -
BEGINNING OF YEAR as Restated 62,499,863$ 62,499,863 $ 62,499,863 $ - $
RESOURCES (INFLOWS)
Taxes 31,773,973 35,660,599 42,460,689 6,800,090 Licenses and Permits 4,972,819 4,884,489 7,332,396 2,447,907 Intergovernmental 21,174,970 25,841,536 40,330,617 14,489,081 Charges for Services 2,500,250 591,563 794,723 203,160 Investment Earnings 1,015,967 1,015,967 389,212 (626,755) Fine and Forfeitures 956,000 646,623 535,740 (110,883) Miscellaneous 4,065,757 6,455,181 6,934,303 479,122 Sale of Capital Assets 260,476 297,445 40,457 (256,988) Transfers In 8,442,269 8,442,269 8,681,059 238,790 Amounts Available for Appropriations 75,162,481 83,835,672 107,499,196 23,663,524
CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 20,739,722 29,806,245 28,827,512 978,733 Public Safety 32,855,838 33,107,148 32,319,382 787,766 Parks, Recreation, and Arts 12,087,419 12,759,370 12,801,400 (42,030) Development Services 8,462,420 9,148,557 7,795,380 1,353,177 Capital Outlay - 224,482 273,583 (49,101) Debt Service:
Principal Retirement 568,876 568,876 568,876 - Interest and Fiscal Charges 64,606 64,606 64,606 - Transfers Out 425,000 687,690 1,142,756 (455,066) Total Charges to Appropriations 75,203,881 86,366,974 83,793,495 2,573,479 BUDGETARY FUND BALANCE - END OF YEAR 62,458,463$ 59,968,561 $ 86,205,564 $ 26,237,003 $ Budgeted Amounts
CITY OF LANCASTER
BUDGETARY COMPARISON STATEMENT
LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(24)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE -
BEGINNING OF YEAR, as Restated 85,433,896$ 85,433,896 $ 85,433,896 $ - $
RESOURCES (INFLOWS)
Investment Earnings - - 3,149 3,149 Gain From Sale of Land Held for Resale - - 472,883 472,883 Miscellaneous 3,845,518 140,365 223,914 83,549 Amounts Available for Appropriations 89,279,414 85,574,261 86,133,842 559,581
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Housing and Neighborhood Revitalization 1,034,801 1,813,601 956,352 857,249 Capital Outlay - - 9,600 (9,600) Transfers Out 508,738 658,303 532,102 126,201 Total Charges to Appropriations 1,543,539 2,471,904 1,498,054 973,850 BUDGETARY FUND BALANCE - END OF YEAR 87,735,875$ 83,102,357 $ 84,635,788 $ 1,533,431 $ Budgeted Amounts
CITY OF LANCASTER
BUDGETARY COMPARISON STATEMENT
TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(25)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 100,375$ 100,375 $ 100,375 $ - $
RESOURCES (INFLOWS)
Intergovernmental 9,510,910 17,235,377 7,726,007 (9,509,370) Investment Earnings - - (828) (828) Miscellaneous - - 1,730 1,730 Transfers In - - 186,728 186,728 Amounts Available for Appropriations 9,611,285 17,335,752 8,014,012 (9,321,740)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 2,475,094 (2,475,094) Transfers Out 9,859,265 10,835,991 6,882,104 3,953,887 Total Charges to Appropriations 9,859,265 10,835,991 9,357,198 1,478,793 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (247,980)$ 6,499,761 $ (1,343,186) $ (7,842,947) $ Budgeted Amounts
CITY OF LANCASTER
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(26)
Nonmajor
Lancaster Lancaster California
Power Choice Choice Energy
Authority Energy Authority Total
ASSETS
Current Assets:
Cash and Investments - Pooled with City 3,752,307 $ 2,211,666 $ 89,751 $ 6,053,724 $ Cash and Investments - - 801,133 801,133 Receivables:
Accounts 183,344 11,537,822 682,254 12,403,420 Due From Other Governments - 112,032 309,665 421,697 Deposits - 147,000 - 147,000 Prepaid Items - 294,000 42,292 336,292 Restricted Assets:
Cash and Investments 2,270,588 - - 2,270,588 Total Current Assets 6,206,239 14,302,520 1,925,095 22,433,854 Noncurrent Assets:
Capital Assets:
Depreciable 14,561,800 - - 14,561,800 Total Noncurrent Assets 14,561,800 - - 14,561,800 Total Assets 20,768,039 14,302,520 1,925,095 36,995,654
LIABILITIES
Current Liabilities:
Accounts Payable - 6,036,361 654,788 6,691,149 Accrued Liabilities - 54,090 - 54,090 Interest Payable 142,232 - - 142,232 Unearned Revenues 71,225 240,000 - 311,225 Due to Other Funds - 2,667,878 - 2,667,878 Deposits - 200,000 883,000 1,083,000 Current Portion of Long-Term Liabilities 625,000 - - 625,000 Total Current Liabilities 838,457 9,198,329 1,537,788 11,574,574 Long-Term Liabilities
Noncurrent Portion of Long-Term Liabilities 19,658,643 - - 19,658,643 Total Long-Term Liabilities 19,658,643 - - 19,658,643 Total Liabilities 20,497,100 9,198,329 1,537,788 31,233,217
NET POSITION
Net Investment in Capital Assets (2,899,971) - - (2,899,971) Unrestricted 3,170,910 5,104,191 387,307 8,662,408 Total Net Position 270,939 $ 5,104,191 $ 387,307 $ 5,762,437 $ Enterprise Funds
Business-Type Activities
CITY OF LANCASTER
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(27)
Nonmajor
Lancaster Lancaster California
Power Choice Choice Energy
Authority Energy Authority Total
OPERATING REVENUES
Sales and Service Charges 1,896,121 $ 46,576,991 $ 5,987,488 $ 54,460,600 $ Total Operating Revenues 1,896,121 46,576,991 5,987,488 54,460,600
OPERATING EXPENSES
Purchased Power - 43,654,132 - 43,654,132 Administration and General 3,127 3,359,739 6,033,722 9,396,588 Depreciation Expense 939,471 - - 939,471 Total Operating Expenses 942,598 47,013,871 6,033,722 53,990,191 OPERATING INCOME 953,523 (436,880) (46,234) 470,409
NONOPERATING REVENUES (EXPENSES)
Interest Revenue 860 - - 860 Interest Expense (882,548) - - (882,548) Total Nonoperating Revenue (Expenses) (881,688) - - (881,688) INCOME BEFORE TRANSFERS 71,835 (436,880) (46,234) (411,279)
TRANSFERS
Transfers Out (11,246) (864,604) - (875,850) Total Transfers (11,246) (864,604) - (875,850) CHANGE IN NET POSITION 60,589 (1,301,484) (46,234) (1,287,129) Net Position - Beginning of Year 210,350 6,405,675 433,541 7,049,566 NET POSITION - END OF YEAR 270,939$ 5,104,191 $ 387,307 $ 5,762,437 $ Enterprise Funds
Business-Type Activities
CITY OF LANCASTER
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(28)
Nonmajor
Lancaster Lancaster California
Power Choice Choice Energy
Authority Energy Authority Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received From Customers and Users 1,941,476 $ 42,615,200 $ 5,047,859 $ 49,604,535 $ Cash Paid to Suppliers for Goods and Services (4,927) (44,918,680) (5,557,495) (50,481,102) Net Cash Provided (Used) by Operating Activities 1,936,549 (2,303,480) (509,636) (876,567)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Cash Received From Other Funds - 2,667,878 - 2,667,878 Cash Paid to Other Funds (11,246) (60,501) (500,000) (571,747) Net Cash Provided (Used) by Noncapital
Financing Activities (11,246) 2,607,377 (500,000) 2,096,131
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal Paid on Capital Debt (569,999) - - (569,999) Interest Paid on Capital Debt (861,944) - - (861,944) Net Cash Used by Capital and
Related Financing Activities (1,431,943) - - (1,431,943)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 860 - - 860 Net Cash Provided by Investing Activities 860 - - 860
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 494,220 303,897 (1,009,636) (211,519) Cash and Cash Equivalents - Beginning of Year 5,528,675 1,907,769 1,900,520 9,336,964 CASH AND CASH EQUIVALENTS - END OF YEAR 6,022,895$ 2,211,666 $ 890,884 $ 9,125,445 $
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) 953,523 $ (436,880) $ (46,234) $ 470,409 $ Adjustments to Reconcile Operating Income (Loss)
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 137,037 (2,804,144) (176,964) (2,844,071) (Increase) Decrease in Due From Other Governments - (112,032) (309,665) (421,697) (Increase) Decrease in Deposits - (47,000) - (47,000) (Increase) Decrease in Prepaid Items - 496,000 485,708 981,708 Increase (Decrease) in Accounts Payable (1,800) 1,638,552 210,271 1,847,023 Increase (Decrease) in Accrued Liabilities - 7,639 - 7,639 Increase (Decrease) in Due to Other Governments - - (219,752) (219,752) Increase (Decrease) in Unearned Revenues (91,682) (1,045,615) (528,000) (1,665,297) Increase (Decrease) in Deposits - - 75,000 75,000 Net Cash Provided (Used) by Operating Activities 1,936,549$ (2,303,480) $ (509,636) $ (876,567) $ Business-Type Activities
Enterprise Funds
CITY OF LANCASTER
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(29)
Private-Purpose
Trust Fund
Successor
Agency of the Custodial
Former RDA Funds
ASSETS
Pooled Cash and Investments 17,995,967 $ 189,592 $
Receivables:
Accounts 12,658 12,351
Taxes - 2,989
Notes and Loans, Net 108,733 -
Accrued Interest 8,465 -
Restricted Assets:
Cash and Investments With Fiscal Agents 3,054,629 2,185 Total Assets 21,180,452 207,117
DEFERRED OUTFLOWS OF RESOURCES
Deferred Losses on Debt Refundings 4,835,250 -
LIABILITIES
Interest Payable 2,401,858 -
Deposits Payable - 25,056
Advances From City of Lancaster 67,552,256 -
Long-Term Liabilities:
Due in One Year 9,470,000 -
Due in More Than One Year 151,552,776 -
Total Liabilities 230,976,890 25,056
DEFERRED INFLOWS OF RESOURCES
Deferred Gains on Debt Refundings 1,034,271 -
NET POSITION
Held in Trust for Other Purposes (205,995,459) -
Restricted for Bondholders - 182,061 Total Net Position (205,995,459) $ 182,061 $
CITY OF LANCASTER
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(30)
Private-Purpose
Trust Fund
Successor
Agency of the Custodial
Former RDA Funds
ADDITIONS
Taxes 14,108,511 $ 525,877 $
Intergovernmental - Other 2,498,572 -
Investment Income (loss) (48,948) -
Rental Income 419,839 -
Miscellaneous 816,040 -
Total Additions 17,794,014 525,877
DEDUCTIONS
Administrative Expenses 530,257 1,575
Payment of Special Tax Debt 6,836,804 735,116
Total Deductions 7,367,061 736,691
CHANGE IN NET POSITION 10,426,953 (210,814)
Net Position - Beginning of Year as Restated (216,422,412) 392,875 NET POSITION - END OF YEAR (205,995,459)$ 182,061 $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(31)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Lancaster, California (the City) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
A. Description of the Reporting Entity
The City was incorporated on November 22, 1977, under the laws of the state of California. The City is a charter city administered under a council/manager form of government. The accompanying financial statements present the City of Lancaster and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.
The management of the primary government has operational responsibility for each of the component units, and/or receives financial benefits from each component unit, being blended within the financial reporting entity of the City of Lancaster. Component units include the Lancaster Housing Authority, the Lancaster Community Services Foundation, the Lancaster Financing Authority, the Lancaster Power Authority, and the California Choice Energy Authority.
A brief description of each blended component unit follows:
The Lancaster Housing Authority (the Housing Authority) was formed for the purpose of providing affordable, decent housing for lower income residents of the City. The Housing Authority assumed responsibilities for the prior low/moderate Housing Fund.
Separate financial statements are not available for the Housing Authority.
The Lancaster Community Services Foundation (the Foundation) was formed to provide certain community services to the residents of the City. Separate financial statements are not available for the Foundation.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(32)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The Lancaster Financing Authority Debt Service Fund (the Financing Authority) was formed for the purpose to provide, through the issuance of debt, financing necessary for various capital improvements. Separate financial statements are not available for the Financing Authority.
The Lancaster Power Authority (the Power Authority) was formed to own and operate a municipal gas and electric utility, for the benefit of the residents of the City and customers, businesses, and property owners in the City. Separate financial statements are not available for the Power Authority.
The California Choice Energy Authority (the Energy Authority) was formed to help cities in the Southern California Edison territory participate in community choice aggregation without having to sacrifice control often associated with joint power authorities or taking on the significant liability of a single entity community choice aggregation. Separate financial statements are not available for the Energy Authority.
B. Basis of Accounting and Measurement Focus
The financial statements of the City are composed of the following:
Government-Wide Financial Statements
Fund Financial Statements
Notes to the Financial Statements
Government-Wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units). Eliminations have been made in the statement of activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.
Interfund services provided and used are not eliminated in the process of consolidation.
Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(33)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Government-Wide Financial Statements (Continued)
Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
Program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary gov ernment’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about the major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary statements, even though excluded from the government-wide financial statements, represent a private-purpose trust fund and custodial funds.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(34)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period.
Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statem ents. Significant revenues subject to the criteria include taxes, licenses and permits, and intergovernmental revenues. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided).
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of available spendable resources . Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period.
Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. The principal portion of advances to other funds reported in the general fund financial statements is classified as nonspendable fund balance to indicate that it is not available for appropriation and is not an expendable available financial resource.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available where cash is received by the government. The availability period for these revenues is 60 days.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Proprietary and Fiduciary Funds
The City’s enterprise funds are proprietary funds. In the fund financial statements, the proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds and fiduciary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, all liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position.
Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary funds operating revenue, such as charges for services, result from exchange transactions associated with the principal activities of the funds. Exchange transactions are those in which each party receives and gives up essentially equal values.
Nonoperating revenues, such as subsidies, taxes, and investment earnings, result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise funds financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expenditure.
The City’s fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. Because these funds are not available for use by the City, fiduciary funds are not included in the governmental-wide statements.
C. Fund Classifications
The City reports the following major governmental funds:
General Fund – This is the primary operating fund of the City. It accounts for all unrestricted resources, except those required to be accounted for in another fund.
Lancaster Housing Authority Special Revenue Fund – This fund is used to account for the purpose of providing affordable, decent housing for lower income residents of the City. Also, to account for the housing assets and functions previously performed by the former redevelopment agency and is funded by revenues generated by the housing assets.
Transportation Development Authority Special Revenue Fund – This fund is used to account for restricted funds associated with the Transportation Development Act.
The funding is provided to support transportation planning and mass transportation purposes.
Lancaster Financing Authority Debt Service Fund – This fund is used to account for resources restricted or assigned for expenditures of principal and interest.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Fund Classifications (Continued)
The City reports the following major proprietary funds:
Lancaster Power Authority – This fund is used to account for the ownership and operation of a municipal gas and electric utility for the benefit of the residents of the City and customers, businesses, and property owners in the City.
Lancaster Choice Energy (LCE) – This fund is used to account for the operations of the not-for-profit power provider.
Additionally, the City reports the following fund types:
Governmental Fund Types
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.
Fiduciary Fund Types
Private-Purpose Trust Fund – This fund is used to account for the assets and liabilities of the former redevelopment agency. The City, in its capacity as the Successor Agency, receives revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.
Custodial Funds – These funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.
The City reports the following Custodial Funds:
Assessment District – to account for the City, acting in the capacity as an agent, for various 1915 Act Assessment District Bonds.
Community Facilities Districts (CFD) – to account for collection of special assessments within the Mello-Roos District to provide public waterworks improvements and basic infrastructure within the Districts.
Deposits – to account for deposits held on behalf of the Downtown Lancaster Association.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
In fiscal year ended June 30, 2021, the City adopted the following accounting standard.
GASB Statement No. 84, Fiduciary Activities, became effective for fiscal years beginning after December 15, 2019. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City has implemented this Statement, see Note 21 for detail on impact to the City’s financial statements.
E. Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. The City pools idle cash from all funds for the purpose of increasing income through investment activities.
Investments for the City, as well as for its component units, are reported at fair value which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The fair value of the City’s invest ment in this pool is reported at an amount based upon the City’s prorated share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
F. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to / from other funds” (i.e., the current portion of interfund loans) or “advances to / from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to / from other funds.”
G. Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due, or past due, and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 a.m. on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respec tively. Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Inventories and Prepaid Items
Inventories of materials and supplies are carried at cost on a moving average basis.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
The consumption method of accounting is used for both inventories and prepaid items.
I. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.
J. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar item s), are reported in the government-wide financial statements. The government defines capi tal assets as assets with an initial, individual cost of more than $5,000 or plant and infrastructure capital projects that are in excess of $125,000 (amounts not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition 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 assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, and equipment of the primar y government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
Structures and Improvements 40 Years
Furniture and Equipment 7 to 10 Years
Infrastructure 50 Years
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources , represents a consumption of net position that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following item that qualifies for reporting in this category:
Deferred loss on refunding, net of accumulated amortization reported in the fiduciary private-purpose trust fund. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
Deferred outflows related to pensions and other postemployment benefits (OPEB) equal to employer contributions made after the measurement date of the net pension liability and net OPEB liability.
Deferred outflows related to pensi ons and OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plans.
Deferred outflows related to pensions and OPEB resulting from the difference in projected and actual earnings on investments of the plans. These amounts are amortized over five years.
In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources , represents an acquisition of net position that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
Deferred inflows from unavailable revenues, which are reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from following sources, which are taxes, interest, and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
Deferred gain on refunding, net of accumulated amortization reported in the fiduciary private-purpose trust fund. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Deferred Outflows/Inflows of Resources (Continued)
Deferred inflows from OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with pensions through the plan.
L. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s practice to consider restricted – net position to have been depleted before unrestricted – net position is applied.
M. Land Held for Resale
The Lancaster Housing Authority acquired property via the Neighborhood Stabilization Program to reduce blight and provide affordable housing to our citizens. These parcels are shown in the Lancaster Housing Authority Special Revenue Fund and the Housing and Community Development Special Revenue Fund.
All land held for resale is recorded at lower-of-cost or market value.
N. Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation pay is payable to employees at the time a vacation is taken or upon termination of em ployment. Additionally, employees may elect to cash in accrued vacation in excess of 80 hours once per fiscal year up to a maximum of 40 hours. Vacation accruals are based on years of service, with the maximum balance of unused accruals set at 362 hours after 10 years of service.
Sick leave is payable when an employee is unable to work because of illness. Accrued sick leave may be accumulated without limit. Employees resigning in good standing from City service shall receive payment up to a maximum of 50% of unused sick leave, depending on years of service. The maximum hours payable is set at 1,000 after 15 years of service.
All vacation and sick leave pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
The liability is generally liquidated by the general fund.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period as other financing sources and uses, respectively.
The face amount of debt issued is reported as other financing sources.
P. Fund Balance Classification
In the fund financial statements, fund balances are classified as follows:
Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash (for example, inventories and prepaid amounts). In the general fund only, it also includes the long-term portion of notes and loan’s receivable with no constraints on how the eventual proceeds can be spent.
Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of t he government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.
Pursuant to Resolution 96-111, a minimum of 10% unallocated fund balance shall be designated to provide contingency in case of unexpected decreases in revenues or unexpected expenditures. In accordance with the resolution, these funds can only be used for specific expenditure(s) following a formal vote of the City Council.
Assigned includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager and/or Finance Director is authorized to assign amounts to a specific purpose, which was established by the governing body in Resolution 11-35.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance Classification (Continued)
Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The general fund is the only fund that reports a positive unassigned fund balance amount. In other funds, deficit balance amounts resulting from overspending for specific purposes for which amounts have been restricted, committed, or assigned are classified as unassigned.
An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of thos e unrestricted fund balance classifications can be used.
Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Em ployees’ Retirement System (CalPERS) plans and the Public Agency Retirement Services (PARS) plan (collectively, the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
R. Postemployment Benefits Other Than Pensions
For purposes of measuring the net OPEB liability (asset) and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plan and additions to/deductions from the OPEB plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, the City’s OPEB plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.
S. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred inflows of resources, liabilities, and deferred outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(43)
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. Supplemental appropriations, where r equired during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager or designee. Expenditures may not exceed appropriations at the function level. At fiscal year-end, all unencumbered operating budget appropr iations lapse with the exception of those for unfinished capital projects, special projects, and grant programs. For these specific projects and programs, unused appropriations at the end of the fiscal year are carried forward and become part of the next year’s budget. During the year, several supplementary appropriations were necessary.
Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the general, special revenue, and similar governmental funds. Encumbrances are included in the general fund’s assigned fund balance under capital projects for $7,585,171. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities.
Budget Basis of Accounting
Budgets for all governmental funds, except the Community Services Foundation, Zero-Net Energy Solar Mitigation In Lieu Special Revenue Fund, Mariposa Lily Special Revenue Fund, Lancaster Financing Authority Debt Service Fund, and the Capital Projects Fund, which are budgeted on a project basis, are adopted on a basis consistent with accounting principles generally accepted in the United States of America.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(44)
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Excess of Expenditures over Appropriations
The following are funds in which certain expenditures exceeded appropriations for the fiscal year ended June 30, 2021:
Final Variance With
Budget Actual Final Budget
Major Funds
General Fund:
Parks, Recreation, and Arts 12,759,370 $ 12,801,400 $ (42,030) $ Capital Outlay 224,482 273,583 (49,101) Lancaster Housing Authority:
Capital Outlay - 9,600 (9,600) Transportation Development Authority:
Capital Outlay - 2,475,094 (2,475,094) Other Governmental Special Revenue Funds
Gas Tax
Capital Outlay - 1,564,526 (1,564,526) Landscape Maintenance District
Capital Outlay - 8,682 (8,682) Housing and Community Development
Capital Outlay - 571,453 (571,453) Home
Housing and Neighborhood Revitalization - 238,843 (238,843) Proposition A
General Government 1,674,648 2,189,561 (514,913) Capital Outlay - 259,354 (259,354) Bikeway Improvement
Capital Outlay - 216,070 (216,070) Proposition C:
Capital Outlay - 950,516 (950,516) Federal Grant
Capital Outlay - 1,677,083 (1,677,083) State Grant
General Government 148,910 193,343 (44,433) Capital Outlay - 1,714,488 (1,714,488) Park Development
Capital Outlay - 91,947 (91,947) Developer Fees - Signals
Capital Outlay - 47,968 (47,968) Developer Fees - Drainage
Capital Outlay - 848,439 (848,439) Traffic Impact
Capital Outlay - 285,387 (285,387) Landscape Drainage Maintenance District:
Capital Outlay - 139,337 (139,337) Debt Service - Principal Retirement - 31,705 (31,705) Debt Service - Interest and Fiscal Charges - 2,993 (2,993) MTA Grant
Capital Outlay - 745,903 (745,903) Urban Structure Program
Capital Outlay - 190,859 (190,859) Sewer Maintenance
General Government - 2,117 (2,117) Capital Outlay - 333,631 (333,631) Proposition 1B
Capital Outlay - 136,746 (136,746) Proposition 42
Capital Outlay - 591 (591) Measure R:
Development Services - 2,301 (2,301) Capital Outlay - 6,624,280 (6,624,280) Measure M:
Development Services - 3,075 (3,075) Capital Outlay 343,048 463,252 (120,204) Lancaster Lighting District
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(45)
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Fund Balances
The following funds contained deficit fund balances as of June 30, 2021:
Deficit
Amount
Transportation Development Authority Special Revenue Fund (1,343,186)$ (3) Other Governmental Special Revenue Funds
Bikeway Improvement (1,538) (2)
Federal Grants Special Revenue Fund (443,783) (1) State Grants Special Revenue Fund (1,830,739) (1) AQMD (39,252) (2)
LA County Reimbursement (179,568) (1)
MTA Grant (375,893) (1)
These fund balance deficits will be eliminated as (1) grant reimbursements become available, (2) when transfers are made, or (3) future revenues are received.
NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments held by the City at June 30, 2021, are reported in the accompanying financial statements as follows:
Statement of Net Position
Cash and Investments 86,221,171 $
Restricted:
Cash and Investments 73,283,226
Statement of Fiduciary Assets and Liabilities
Pooled Cash and Investments 18,185,559
Restricted:
Cash and Investments With Fiscal Agents 3,056,814
Total Cash and Investments 180,746,770 $
Cash and Investments Consisted of the Following:
Cash on Hand 5,700 $
Deposits With Financial Institutions 45,610,041
Investments 135,131,029
Total Cash and Investments 180,746,770 $
The City of Lancaster maintains a cash and investment pool that is available for use for all funds. Each fund type’s position in the pool is reported in the financial statements as pooled cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(46)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Deposits
The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also follows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California, as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository is considered to be held for, and in the name of, the local governmental agency. As of June 30, 2021, all the City’s deposits with financial institutions were covered by federal depository insurance limits or were held in collateralized accounts.
Under provision of the City’s investment policy, and in accordance with the California Government Code, the following investments are authorized:
United States Treasury Securities
United States Government Sponsored Agency Securities
Certificates of Deposit
Medium-Term Notes
Prime Commercial Paper
Banker’s Acceptances
Repurchase Agreements
Local Agency Investment Fund (State Pool)
Money Market Mutual Funds
Municipal Bonds
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee.
Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.
Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with state statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(47)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Credit Risk
The City’s investment policy limits investments in medium-term notes (MTNs) and municipal bonds to those rated AA- or better by a nationally recognized statistical rating organization.
At June 30, 2021, the City invested in various MTNs and municipal bonds which were rated AA- or better by Standard & Poor’s (S&P). At June 30, 2021, the City’s investments with US Government Sponsored Agency Securities were rated AA+ and money market mutual funds were rated AAA by S&P. Investments in US gov ernment securities are not considered to have credit risk and, therefore, their credit quality in not disclosed.
As of June 30, 2021, the City’s investment in LAIF is unrated. The City has amounts invested in investment agreements held with fiscal agents and invested under the direction of the City, which are unrated.
Custodial Credit Risk
The 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 deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in th e event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2021, none of the City’s deposits or investments were exposed to custodial credit risk.
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the maximum percentage it can invest in a single type of investment. These limitations are 25% of the City’s invested funds for nonnegotiable certificates of deposit, 15% of the City’s invested funds for banker acceptances with no more than 2% in any one issuer, 25% of the City’s invested funds for commercial paper with no more than 5% in any one issuer, 30% of the City’s invested funds for medium-term notes with no more than 5% in any one issuer, and 20% of the City’s invested funds for money market funds with no more than 10% in any one issuer. If the City has invested more than 5% of its total investments in any one issuer then it is exposed to credit risk.
As of June 30, 2021, none of the City’s investments had issuers exceeding 5% of the City investment pool.
Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that investments in United Stated Treasury Securities and securities for which the full-faith and credit of the United States is pledged should have a maturity no longer than five years. Reserve funds relating to the bond issues may be invested in securities for more than five years if the maturity of such in vestments is made to coincide as nearly as practicable with the expected use of the funds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(48)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
As of June 30, 2021, the City had the following investments and original maturities:
1 Year 1 Year 3 Years 5 Years
Investment Type or Less to 3 Years to 5 Years and More Total City Investment Pool:
United States Treasury
Securities 7,644,861 $ 8,742,526 $ 1,031,680 $ - $ 17,419,067$ United States Government
Sponsored Agency
Securities - 5,847,806 4,350,391 - 10,198,197 Medium-Term Corporate Notes 2,505,432 2,395,629 4,281,463 - 9,182,524 Municipal Bonds - 3,284,782 1,498,347 - 4,783,129 California Local Agency
Investment Fund (LAIF) 17,200,972 - - - 17,200,972 Money Market Mutual Funds 7,991 - - - 7,991 Held by Fiscal Agent:
Money Market Mutual Funds 76,339,149 - - - 76,339,149 Total 103,698,405 $ 20,270,743 $ 11,161,881 $ - $ 135,131,029$ Remaining Maturity (in Years)
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadj usted quoted prices in active markets for identical assets (Level 1 measurements), inputs are quoted price of similar assets in active markets (Level 2 measurements), and the lowest priority to unobservable inputs (Level 3 measurements).
The City has the following recurring fair value measurements as of June 30, 2021:
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
United States Treasury Securities 17,419,067 $ - $ - $ 17,419,067$ United States Government Sponsored
Agency Securities - 10,198,197 - 10,198,197 Medium-Term Corporate Notes - 9,182,524 - 9,182,524 Municipal Bonds - 4,783,129 - 4,783,129 Total Subject to Hierarchy 17,419,067 $ 24,163,850 $ - $ 41,582,917 LAIF (1) 17,200,972
Money Market Mutual Funds (1) 7,991
Held by Fiscal Agent:
Money Market Mutual Funds (1) 76,339,149
Total Investment Portfolio 135,131,029$
(1) Investment is not subject to fair value hierarchy measurements.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(49)
NOTE 4 NOTES AND LOANS RECEIVABLE
Notes and loans receivable at June 30, 2021, were as follows:
Loans and Loan Long-Term
Notes Forgiveness/ Lump-Sum
Receivable Allowance Repayment
Repayments Terms Terms Total
General Fund 1,525,588 $ (669,270) $ (35,879) $ 820,439 $ Lancaster Housing Authority
Special Revenue Fund 3,827,877 - - 3,827,877 Other Governmental Funds
HOME Program Special
Revenue Fund 15,176,643 (14,586,583) - 590,060 Total 20,530,108 $ (15,255,853) $ (35,879) $ 5,238,376 $ Fiduciary Private-Purpose
Trust Fund 117,066 $ (8,333) $ - $ 108,733$
Loan forgiveness/allowance is a reduction in the balance for the amount forgiven or allowed for based on assessment of collectability on the loans by the City during the fiscal year. The long-term lump-sum repayment terms reduces the loan balance for the payments received during the year.
NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2021, was as follows:
Governmental Activities
Construction
Balance at in Progress Balance at
June 30, 2020 Transfers Additions Deletions June 30, 2021 Governmental Activities:
Capital Assets, Not Depreciated:
Land, as Restate 29,796,320 $ - $ - $ - $ 29,796,320$ Construction in Progress 37,968,370 (10,891,118) 28,937,306 199,400 55,815,158 Total Capital Assets,
Not Depreciated 67,764,690 (10,891,118) 28,937,306 199,400 85,611,478 Capital Assets, Being Depreciated:
Structures and Improvements 76,456,526 - - - 76,456,526 Furniture and Equipment 16,548,045 - 777,183 - 17,325,228 Infrastructure 1,710,340,682 10,891,118 6,637,209 - 1,727,869,009 Total Capital Assets,
Being Depreciated 1,803,345,253 10,891,118 7,414,392 - 1,821,650,763 Less Accumulated Depreciation for:
Structures and Improvements (36,522,265) - (1,522,829) - (38,045,094) Furniture and Equipment (12,422,707) - (405,563) - (12,828,270) Infrastructure (953,781,772) - (34,413,689) - (988,195,461) Total Accumulated Depreciation (1,002,726,744) - (36,342,081) - (1,039,068,825) Total Capital Assets,
Being Depreciated, Net 800,618,509 10,891,118 (28,927,689) - 782,581,938 Governmental Activities
Capital Assets, Net 868,383,199 $ - $ 9,617$ 199,400 $ 868,193,416$
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(50)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged in the following functions in the statement of activities for the year ended June 30, 2021, as follows:
General Government 282,113 $
Development Services 33,529,246
Community Development 102,454
Parks, Recreation, and Arts 2,428,268
Total 36,342,081 $
Business-Type Activities
Capital asset activity for the year ended June 30, 2021, was as follows:
Balance at Balance at
June 30, 2020 Additions Deletions June 30, 2021
Capital Assets, Not Depreciated:
Intangible Assets 23,486,774 $ - $ - $ 23,486,774$ Less Accumulated Depreciation for:
Intangible Assets (7,985,503) - (939,471) (8,924,974) Total Business-Type Activities
Capital Assets, Net 15,501,271 $ - $ (939,471)$ 14,561,800 $
The depreciation expense of $939,471 was charged to the Lancaster Power Authority program for the year ended June 30, 2021.
NOTE 6 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Due To/From Other Funds
Interfund receivable and payable balances at June 30, 2021, are as follows:
Receivable Payable Amount
General Fund
Transportation Development Authority 9,171,809$
Lancaster Financing Authority 14,962,258
Other Governmental Funds 8,822,074
California Choice Energy Authority
Enterprise Fund 2,667,878
Total 35,624,019 $
The due to General Fund was a result of temporary deficit cash balances in those funds.
The due to General Fund from the California Choice Energy Authority to provide for funds for collateral deposit and reimbursement of expenses.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(51)
NOTE 6 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS (CONTINUED) Transfers
The following schedule summarizes the City’s transfer activity:
Transfers In Transfers Out Amount
General Fund Lancaster Housing Authority
Special Revenue Fund 531,768 $
Transportation Special Revenue Fund 660,342
Other Governmental Funds 6,638,567
Lancaster Power Authority
Enterprise Fund 11,246
Lancaster Choice Energy
Enterprise Fund 839,136
Tranportation Development
Authority Special Revenue Fund Other Governmental Funds 186,728 Lancaster Financing Authority
Debt Service Fund General Fund 398,993
Other Governmental Funds 3,126,442
Lancaster Choice Energy
Enterprise Fund 25,468
Other Governmental Funds General Fund 743,763
Lancaster Housing Authority
Special Revenue Fund 334
Transportation Special Revenue Fund 6,221,762
Other Governmental Funds 107,581
Total 19,492,130 $
Transfers made to the General Fund were for administrative and retiree health benefit costs incurred.
Transfers made to the Transportation Development Authority Special Revenue Fund were for project expenses.
Transfers made to the Lancaster Financing Authority Debt Service Fund were for debt service requirements
Transfers made to Other Governmental Funds were to cover various operations and capital projects.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(52)
NOTE 7 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2021, are as follows:
Balance Balance Due Due in More
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Year Direct Borrowings:
Section 108 Notes:
Series 2015-A1 387,000$ - $ 91,000$ 296,000 $ 95,000 $ 201,000 $ Series 2015-A2 494,000 - 91,000 403,000 95,000 308,000 Capital Leases 1,113,831 - 282,825 831,006 216,303 614,703 Loans 693,254 - 117,755 575,499 121,314 454,185 Settlement Agreement 1,400,000 - 200,000 1,200,000 200,000 1,000,000 Other Debt:
Streetlight Acquisition
Issue of 2016 12,630,000 - 570,000 12,060,000 585,000 11,475,000 Public Improvements Project
Issue of 2018 14,085,000 - 265,000 13,820,000 275,000 13,545,000 Measure M & R Street Improvement
Profit Issue of 2018 46,960,000 - 725,000 46,235,000 755,000 45,480,000 Unamortized Bond Premium 7,797,476 - 382,123 7,415,353 - 7,415,353 1997 Series A 250,000 - 250,000 - - - 1997 Series B CIB 103,112 - 103,112 - - - 1997 Series B - CAB 360,000 - 360,000 - - - Other Long-Term Liabilities:
Accrued Employee Benefits 3,034,572 2,322,134 1,921,884 3,434,822 1,921,883 1,512,939 Claims and Judgements 2,637,000 942,000 466,000 3,113,000 653,119 2,459,881 Total Governmental
Activities 91,945,245 $ 3,264,134 $ 5,825,699 $ 89,383,680 $ 4,917,619 $ 84,466,061 $
The liability for accrued employee benefits is fully liquidated by the general fund. The net pension liability is recorded in the fund incurring the current pension expense. For the net pension liability, the general fund normally liquidates 67%, and 33% is liquidated by the other governmental funds.
Section 108 Notes
Series 2015-A1
On August 7, 2003, the City issued $1,450,000 of US Government Guaranteed Notes, Series 2003-A, guaranteed by the Secretary of Housing and Urban Development. The City has pledged as security for repayment of the notes from (a) future entitlements that the City may become eligible for under Section 108 of Title I of the Housing and Community Development Act of 1974 and (b) program income. During fiscal year 2015-2016, the City refinanced the 2003 Series notes at a lower interest rate by issuing Series 2015-A1 notes. The notes mature from 2004-2023 and bear varying rates of interest. The principal balance outstanding as of June 30, 2021, was $296,000.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(53)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Section 108 Notes (Continued)
Series 2015-A2
On June 30, 2004, the City issued $1,500,000 of US Government Guaranteed Notes, Series 2004-A, guaranteed by the Secretary of Housing and Urban Development. The City has pledged as security for repayment of the notes from (a) future entitlements that the City may become eligible for under Section 108 of Title I of the Housing and Community Development Act of 1974 and (b) program income. During fiscal year 2015-2016, the City refinanced the 2004 Series notes at a lower interest rate by issuing Series 2015-A2 notes. The notes mature from 2006-2024 and bear varying rates of interest. The principal balance outstanding as of June 30, 2021, was $403,000.
The annual requirements to amortize the Section 108 Notes outstanding indebtedness as of June 30, 2021, are as follows:
Year Ending June 30, Principal Interest Total
2022 190,000 $ 15,845 $ 205,845 $
2023 198,000 11,187 209,187
2024 205,000 5,891 210,891
2025 106,000 1,510 107,510
Total 699,000 $ 34,433 $ 733,433 $
Limited Obligation Bonds
Series 1997 A
The Limited Obligation Bonds, Series 1997 A in the original issue amount of $3,740,000, were issued by the Lancaster Financing Authority for the purchase of certain refunding bonds of the Community Facilities District Number 89-1. The bonds mature in both serial and term fashion through September 1, 2020, and interest is payable semiannually at a rate of 6%. The bonds are subject to opt ional and mandatory sinking fund redemption prior to maturity in denomination of $5,000. The bonds are payable from a special tax assessed on the properties within the community facilities districts. The bonds do not have reserve requirement. The bond was paid off during the year.
Series 1997 B
The Limited Obligation Bonds, Series 1997 B in the original issue amount of $2,643,890, were issued by the Lancaster Financing Authority for the purchase of certain refunding bonds of the Community Facilities District Number 89-1. The bonds include $1,185,535 term current interest bonds with interest payable semiannually on March 1 and September 1 of each year, commencing March 1, 1998, and $2,664,400 capital appreciation bonds payable at maturity. The bonds are payable from a special tax assessed on the properties within the community facilities districts. The bonds do not have reserve requirement. The bond was paid off during the year.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(54)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Capital Leases
On March 1, 2011, the City entered into an equipment lease/purchase agreement for various capital improvements including lighting upgrades, athletic field lighting upgrades, HVAC system replacement, plumbing fixture upgrades, irrigation weather stations, and solar hot water heating. This lease agreement qualifies as a capital lease for accounting purpose (title transfers at end of lease) and therefore has been recorded at the present value of future minimum lease payments as of the date of inception. The total cost of the equipment acquired under the lease agreement was $1,600,000. The financing was obtained from Municipal Finance Corporation on March 1, 2011, for $1,600,000 with an interest rate of
4.35% per annum and annual payments of $146,341 through the end of the lease (March 2026). The outstanding balance at June 30, 2021, is $651,103.
On March 2, 2016, the City entered into an equipment lease/purchase agreement for vehicles. This lease agreement qualifies as a capital lease for accounting purpose (bargain purchase option at end of lease) and, therefore has been recorded at the present value of future minimum lease payments as of the date of inception. The total cost of the equipment acquired under the lease agreement was $255,981. The financing was obtained from National Cooperative Leasing on March 2, 2016, for $255,981 with an interest rate of 4.2% per annum and annual payments of $57,058 through the end of the lease (July 2020). The lease was paid off during the year.
On August 1, 2016, the City entered into an equipment lease/purchase agreement for vehicles. This lease agreement qualifies as a capital lease for accounting purpose (bargain purchase option at end of lease) and, therefore has been recorded at the present value of future minimum lease payments as of the date of inception. The total cost of the equipment acquired under the lease agreement was $222,438. The financing was obtained from Caterpillar Financial Services Corp. on August 1, 2016, for $222,438 with an interest rate of
3.05% per annum and annual payments of $34,699 through the end of the lease (August 2023). The outstanding balance at June 30, 2021, is $66,439.
On February 22, 2017, the City entered into an equipment lease/purchase agreement for vehicles. This lease agreement qualifies as a capital lease for accounting purpose (bargain purchase option at end of lease) and, therefore has been recorded at the present value of future minimum lease payments as of the date of inception. The total cost of the equipment acquired under the lease agreement was $86,376. The financing was obtained from Caterpillar Financial Services Corp. on February 22, 2017, for $86,376 with an interest rate of 4.2% per annum and annual payments of $18,707 through the end of the lease (July 2022). The outstanding balance at June 30, 2021, is $18,209.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(55)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Capital Leases (Continued)
On May 2, 2017, the City entered into an equipment lease/purchase agreement for vehicles.
This lease agreement qualifies as a capital lease for accounting purpose (bargain purchase option at end of lease) and therefore has been recorded at the present value of future minimum lease payments as of the date of inception. The total cost of the equipment acquired under the lease agreement was $246,407. The financing was obtained from National Cooperative Leasing on May 2, 2017, for $246,407 with an interest rate of 5.09% per annum and annual payments of $54,519 through the end of the lease (May 2022). The lease was paid off during the year.
On July 27, 2018, the City entered into an equipment lease/purchase agreement for vehicles. This lease agreement qualifies as a capital lease for accounting purpose (bargain purchase option at end of lease) and therefore has been recorded at the present value of future minimum lease payments as of the date of inception. The total cost of the equipment acquired under the lease agreement was $232,545. The financing was obtained from De Lage Landen Public Finance LLC on July 27, 2018, for $232,545 with an interest rate of
5.37% per annum and annual payments of $51,498 through the end of the lease (July 2023). The outstanding balance at June 30, 2021, is $95,255.
The calculation of present value of the future lease payments is as follows:
Year Ending June 30, Amount
2022 232,538 $
2023 232,538
2024 146,341
2025 146,341
2026 146,341
Subtotal 904,099
Less: Amount Representing Interest (73,093)
Total 831,006 $
Loans
In January 2011, the City entered into a loan agreement with the State of California Energy Resources Conservation and Development Commission for a loan of $1,469,146 to be used for energy savings projects consisting of athletic field lighting upgrades, HVAC retrofit, weather station installation, and solar hot water. The loan is at an interest rate of 3%.
Principal, together with interest thereon, is due and payable in semiannual installments beginning on December 22, 2012 through December 22, 2025. The outstanding balance at June 30, 2021, is $575,499.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(56)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Loans (Continued)
The annual requirements to amortize the outstanding indebtedness as of June 30, 2021, are as follows:
Year Ending June 30, Principal Interest Total
2022 121,314 $ 16,365 $ 137,679 $
2023 124,981 12,698 137,679
2024 128,736 8,943 137,679
2025 132,649 5,030 137,679
2026 67,819 1,020 68,839
Total 575,499 $ 44,056 $ 619,555 $
Assessment Revenue Bonds
On October 26, 2016, the Lancaster Financing Authority issued $14,250,000 of 2016 Assessment Revenue Streetlights Acquisition Bonds. These bonds were used to finance the purchase of streetlights throughout the City. Interest on these bonds is due semiannually on March 2 and September 2 of each year, commencing March 2, 2017. Interest rates vary from 2% to 4%. The principal portion of thes e bonds is payable from September 2, 2017 to September 2, 2036. The outstanding balance at June 30, 2021, is $12,060,000.
The bond indenture requires the City to maintain a bond reserve in the amount of $975,606.
To satisfy this requirement, the City purch ased as municipal bond insurance policy. The annual requirements to amortize the outstanding indebtedness as of June 30, 2021, are as follows:
Year Ending June 30, Principal Interest Total
2022 585,000 $ 388,281 $ 973,281 $
2023 605,000 370,431 975,431
2024 620,000 352,056 972,056
2025 640,000 333,156 973,156
2026 660,000 313,656 973,656
2027 - 2031 3,645,000 1,195,481 4,840,481 2032 - 2036 4,350,000 496,831 4,846,831 2037 955,000 14,923 969,923
Total 12,060,000 $ 3,464,815 $ 15,524,815 $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(57)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds
Public Improvements Project, Issue of 2018
On December 1, 2018, the Lancaster Financing Authority issued $14,955,000 of Lease Revenue Bonds, Series 2018, Public Improvements Project Bonds. These bonds were issued to finance improvements to City fa cilities. Interest on these bonds is due semiannually on May 1 and November 1 of each year, commencing May 1, 2019.
Interest rates vary from 3% to 5%. The principal portion of these bonds is payable from May 1, 2019 to May 1, 2048. The outstanding balance at June 30, 2021, is $13,820,000.
The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The annual requirements to amortize the outstanding indebtedness as of June 30, 2021, are as follows:
Year Ending June 30, Principal Interest Total
2022 275,000 $ 573,381 $ 848,381 $
2023 290,000 559,631 849,631
2024 305,000 545,131 850,131
2025 320,000 529,881 849,881
2026 330,000 520,281 850,281
2027 - 2031 1,915,000 2,336,656 4,251,656 2032 - 2036 2,400,000 1,852,531 4,252,531 2037 - 2041 2,885,000 1,370,689 4,255,689 2042 - 2046 3,495,000 751,400 4,246,400 2047 - 2048 1,605,000 97,000 1,702,000 Total 13,820,000 $ 9,136,581 $ 22,956,581 $
Street Improvements Project, Issue of 2019
On October 1, 2019, the Lancaster Financing Authority issued $48,405,000 of Lease Revenue Bonds, Series 2019, Measure M & R Street Improvements Project Bonds.
These bonds were issued to finance certain local roadway and street improvements.
Interest on these bonds is due semiannually on December 1 and June 1 of each year, commencing May 1, 2020. Interest rates vary from 3% to 4%. The principal portion of these bonds is payable from May 1, 2020 to May 1, 2049. The outstanding balance at June 30, 2021, is $46,235,000.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(58)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds (Continued)
The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The bonds are payable from the revenues pledged, which consist of:
all Measure M Receipts, which consist of certain amounts received by the City from 0.5% retail transactions and use tax that is collected by the County, to the extent that the applicable Project constitutes a Measure M Project; and
all Measure R Receipts, which consist of certain amounts received by the City from 0.5% retail transactions and use tax that is collected by the County through June 30, 2039, to the extent that the applicable Project constitutes a Measure R Project
The annual requirements to amortize the outstanding indebtedness as of June 30, 2021, are as follows:
Year Ending June 30, Principal Interest Total
2022 755,000 $ 1,948,000 $ 2,703,000 $
2023 785,000 1,917,800 2,702,800
2024 825,000 1,878,550 2,703,550
2025 865,000 1,837,300 2,702,300
2026 905,000 1,794,050 2,699,050
2027 - 2031 5,265,000 8,243,750 13,508,750 2032 - 2036 6,635,000 6,870,150 13,505,150 2036 - 2041 8,600,000 5,417,800 14,017,800 2042 - 2046 12,700,000 3,343,800 16,043,800 2047 - 2049 8,900,000 721,400 9,621,400 Total 46,235,000 $ 33,972,600 $ 80,207,600 $
Settlement Agreement
In September 2015, the City entered into a settlement agreement for $2,400,000. The terms of the agreement allow for payments of the settlement in annual installments of $200,000 beginning on September 1, 2015 through August 1, 2026. The outstanding balance at June 30, 2021, is $1,200,000.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(59)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities
Changes in long-term liabilities for the business-type activities for the year ended June 30, 2021, are as follows:
Balance Due Due in
July 1, 2020 Additions Deletions June 30, 2021 One Year One Year Other Debt:
2012A Solar Renewable
Energy Revenue Bonds 21,225,000 $ - $ 570,000$ 20,655,000$ 625,000 $ 20,030,000$ Unamortized Bond Discount (394,812) - 23,455 (371,357) - (371,357) Total business-Type
Activities 20,830,188 $ - $ 593,455$ 20,283,643$ 625,000 $ 19,658,643$
2012A Solar Renewable Energy Revenue Bonds
On May 17, 2012, the Lancaster Power Authority issued $26,895,000 of 2012A Solar Renewable Energy Revenue Bonds. These bonds were used to finance the prepayment for specified supply of electricity from a 7,319.98 DC kW capacity system. Interest on these bonds is due semiannually on May 1 and November 1 of each year, commencing November 1, 2012. Interest rates vary from 2.000% to 4.375%. The principal portion of these bonds is payable from November 1, 2013 to November 1, 2036. The outstanding balance at June 30, 2021, is $20,655,000.
The bond indenture requires the Lancaster Power Authority to maintain a bond reserve in the amount of $2,222,578. The balance in the reserve account as of June 30, 2021, amounted to $2,270,256.
The annual requirements to amortize the outstanding indebtedness as of June 30, 2021, are as follows:
Year Ending June 30, Principal Interest Total
2022 625,000 $ 843,706 $ 1,468,706 $
2023 690,000 822,806 1,512,806
2024 755,000 796,494 1,551,494
2025 830,000 764,794 1,594,794
2026 910,000 729,994 1,639,994
2027 - 2031 5,920,000 2,999,031 8,919,031 2032 - 2036 8,750,000 1,482,419 10,232,419 2037 2,175,000 47,578 2,222,578
Total 20,655,000 $ 8,486,822 $ 29,141,822 $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(60)
NOTE 8 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension-related items for the year ended June 30, 2021:
Deferred Deferred
Pension Outflows of Inflows of Pension
Liability Resources Resources Expense
CalPERS Miscellaneous 62,922,594 $ 9,125,663 $ - $ 8,407,005$ PARS 4,492,521 121,200 - 1,327,904 Total 67,415,115 $ 9,246,863 $ - $ 9,734,909$
A. Public Employees Retirement System (CalPERS)
General Information about the Pension Plan
Plan Description
All qualified regular and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiemployer defined benefit pension plan administered by the California Public Em ployees’ Retirement System (CalPERS).
Benefit provisions under the Plan are established by state statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provis ions, assumptions, and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. All members are eligible for nonindustrial disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(61)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Benefits Provided (Continued)
The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:
Classic Members Classic Members New Members
Hired Prior to Hired On or After Hired On or After
Hire Date January 1, 2013 January 1, 2013 January 1, 2013 Benefit Formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement age 50 - 55+ 50 - 63+ 52 - 67+
Monthly Benefits, as a %
of Eligible Compensation 2% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required Employee
Contribution Rates 8% 7% 6.25%
Required Employer
Contribution Rates:
Normal Cost Rate 11.144% 11.144% 11.144%
Payment of Unfunded
Liability 3,132,638 $ - $ - $ Miscellaneous
Employees Covered
At the June 30, 2020, measurement date, the following employees were covered by the benefit terms for the Plan:
Miscellaneous
Inactive Employees or Beneficiaries Currently
Receiving Benefits 304
Inactive Employees Entitled to But Not Yet
Receiving Benefits 492
Active Employees 257
Total 1,053
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(62)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The City made contributions to the plan during fiscal year ended June 30, 2021, of $6,735,678.
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2019, actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.5%
Projected Salary Increase (1)
Mortality Rate Table (2)
Post-Retirement Benefit Income (3)
(1) Varies by entry age and service.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(63)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Actuarial Assumptions (Continued)
(2) The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
(3) Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
New Real Return Real Return
Strategic Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(64)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
Changes in the Net Pension Liability
The changes in the net pension liability for the Plan are as follows:
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2019
(Measurement Date) 185,620,817 $ 127,314,703 $ 58,306,114 $ Changes in the Year:
Service Cost 3,812,712 - 3,812,712 Interest on the Total Pension
Liability 13,228,441 - 13,228,441 Differences Between Expected
and Actual Experience 1,608,904 - 1,608,904 Contribution - Employer - 6,104,781 (6,104,781) Contribution - Employee - 1,680,632 (1,680,632) Net Investment Income - 6,427,646 (6,427,646) Administrative Expenses - - - Benefit Payments, Including
Refunds of Employee
Contributions (8,246,671) (8,246,671) -
Other Miscellaneous Income
(Expense) - (179,482) 179,482 Net Changes 10,403,386 5,786,906 4,616,480 Balance at June 30, 2020
(Measurement Date) 196,024,203 $ 133,101,609 $ 62,922,594 $ Increase (Decrease)
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(65)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Plan, calculated using the discount rate of the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 90,125,738 $
Current Discount Rate 7.15%
Net Pension Liability 62,922,594 $
1% Increase 8.15%
Net Pension Liability 40,509,036 $
Pension Plans Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $8,407,005. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date 6,735,678 $ - $
Differences Between Expected and Actual
Experience 1,362,561 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 1,027,424 -
Total 9,125,663 $ - $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(66)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred outflows of resources of $6,735,678 that are related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending June 30, Amount
2022 518,109 $
2023 701,543
2024 644,057
2025 526,276
2026 -
Thereafter -
Total 2,389,985 $
Payable to the Pension Plans
At June 30, 2021, the City had no outstanding contributions to the CalPERS pension plan required for the year ended June 30, 2021.
B. Public Employees Retirement System (PARS)
General Information about the Pension Plan
Plan Description and Benefits
Until December 29, 2012, the City, pursuant to sections 401(a) and 501(a) of the Internal Revenue Code, the City adopted a tax-qualified single-employer governmental defined benefit plan that is to be administered for the City by Public Agency Retirement Service (PARS), a third-party administrator. The plan was established to provide eligible employees, supplemental retirement benefits in addition to the benefits employees will receive from the California Public Employees Retirement System (CalPERS). The plan is closed. A separate financial report is not available for the plan.
Employees Covered
At the June 30, 2020 measurement date, there were 70 inactive employees or beneficiaries receiving benefits.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(67)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Contributions
The actuarial contribution is determined on the funding policy and most recent measurement available when the contribution for the reporting period was adopted.
Net Pension Liability
The City’s net pension liability for this Plan is measured as the pension plan’s fiduciary net position less the total pension liability. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures.
A summary of principal assumptions and methods used to determine the net pension asset is shown on the following page.
Actuarial Assumptions
The total pension liability in the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 3.83%
Inflation 2.75%
Salary Scale Aggregate - 3.00%
Merit - CalPERS 1997-2015
Experience Study
Investment Rate of Return 6%
Mortality Assumption for Service CalPERS 1997-2015 Experience Study
Change of Assumptions and Changes in Experience Affecting the Measurement of the Total Pension Liability Since the Prior Measurement Date Since the prior measurement date of June 30, 2019, the discount rate was updated from 4.71% to 3.83%. In addition, the mortality improvement scale was updated to Scale MP-19.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(68)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Discount Rate
The discount rate of 3.83% was used to measure the total pension liability and was a blended rate equivalent to combination of the long-term expected rate of return on assets and Bond Buyer 20 Index, which is 2.21% at June 30, 2020. In a crossover test, future employer contributions to the trust were assumed to be zero.
The 6.00% long-term expected rate of return was derived based on the inflation assumption of 2.75% and a long-term asset allocation of 48.25% equities, 45% fixed income, 1.75% REITs, and 5% cash equivalent. The geometric real rates of return were assumed to be 4.82% for equities, 1.47% for fixed income, 3.76% for REITs, and 0.06% for cash equivalent.
The table below reflects the long-term expected real rate of return by asset class.
The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
Expected
Target Real Rate
Asset Class Allocation of Return
Equity 48.25% 4.82%
Fixed Income 45.00% 1.47%
REITs 1.75% 3.76%
Cash 5.00% 0.06%
Total 100.00%
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(69)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Changes in the Net Pension Liability
The changes in the net pension liability for the Plans, using the measurement period ended June 30, 2020, are as follows:
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2019
(Measurement Date) 11,924,427 $ 8,904,872 $ 3,019,555 $ Changes in the Year:
Service Cost - - - Interest on the Total Pension
Liability 545,037 - 545,037 Changes in Benefit Terms - - - Changes in Assumptions 1,173,341 - 1,173,341 Differences Between Expected
and Actual Experience - - - Net Investment Income - 262,205 (262,205) Administrative Expenses - - - Benefit Payments (705,047) (705,047) - Administrative Expenses - (16,793) 16,793 Net Changes 1,013,331 (459,635) 1,472,966 Balance at June 30, 2020
(Measurement Date) 12,937,758 $ 8,445,237 $ 4,492,521 $ Increase (Decrease)
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(70)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Miscellaneous
1% Decrease 2.83%
Net Pension Liability (Asset) 6,073,731 $
Current Discount Rate 3.83%
Net Pension Liability (Asset) 4,492,521 $
1% Increase 4.83%
Net Pension Liability (Asset) 3,172,743 $
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS and PARS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $1,327,904. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Net Differences Between Projected and Actual
Earnings on Plan Investments 121,200 $ - $
Total 121,200 $ - $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(71)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending June 30, Amount
2022 (19,831) $
2023 43,548
2024 47,395
2025 50,088
2026 -
Thereafter -
Total 121,200 $
Payable to the Pension Plans
At June 30, 2021, the City had no outstanding contributions to the PARS pension plan required for the year ended June 30, 2021.
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN
General Information about the OPEB Plan
Plan Description
The City provides other postemployment benefits (OPEB) through an agent-employer defined benefit health care plan by contributing a portion of premiums charged under the health benefit plan for all eligible employees. These medical, dental, vision, and long-term care benefits are provided per contract between the City and union employee associations and unrepresented employees. A separate financial report is not available for the plan. This plan has been closed to new employees and the future benefit levels are frozen as of January 1, 2016.
The City entered into an agreement with California Employers’ Retiree Benefit Trust (CERBT) to prefund the City’s OPEB liability.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(72)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
General Information about the OPEB Plan
Employees Covered
As of the June 30, 2020, measurement date, the following current and former employees were covered by the benefit terms under the plan:
Inactive Employees, Spouses, or Beneficiaries
Current Receiving Benefits 132
Active Employees 241
Total 373
Contributions
Contribution requirements are established by City policy and may be amended by the City Council. The annual contribution is based on the actuarially determined contribution.
For the year ended June 30, 2021, the City’s cash contributions were $928,672 in payments to the trust and the estimated implicit subsidy was $203,957, resulting in total contributions of $1,132,629.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(73)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability as of June 30, 2019, actuarial valuation was determined using the following actuarial assumptions and applied to all periods included in the measurement, unless otherwise specified:
Miscellaneous
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.25%
Inflation 2.75%
Projected Salary Increase Aggregate - 3.00%
Expected Long-Term Investment Rate of Return 6.25%
Non-Medicare 7.25% for 2021,
Health Care Cost Trend Rates decreasing to 4.0% in 2076, Medicare 6.3% for 2021,
decreasing to 4.0% in 2076
Derived from CalPERS 1997-2015
Mortality, Retirement, Disability, and Termination Experience Study. Retirement assumed after age 55, with rates
from ages 50-54 spread over ages
55-56.
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense, and inflat ion) are developed for each major asset class. The asset class percentages are taken from the current composition of CERBT and the expected yields are taken from a recent CalPERS publication for the pension fund:
New Long-Term
Strategic Expected Real
Asset Class Allocation Rate of Return
CERBT
Global Equity 40.00% 4.82%
Fixed Income 43.00% 1.47%
TIPS 5.00% 1.29%
REITs 8.00% 3.76%
Commodities 4.00% 0.84%
Total 100.00%
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(74)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Net OPEB Liability (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability is 6.25%. This is the expected long-term rate of return on City assets using investment strategy 2 within the California Employers’ Retiree Benefit Trust (CERBT). The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position is projec ted to cover all future OPEB payments.
Therefore, the discount rate was set equal to the long-term expected rate of return.
Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
Balance at June 30, 2019
(Measurement Date) 27,478,128 $ 10,167,957 $ 17,310,171 $ Changes in the Year:
Service Cost 544,912 - 544,912 Interest on the Total OPEB
Liability 1,711,964 - 1,711,964 Differences Between Actual
and Expected Experience - - - Changes in Assumptions (498,407) - (498,407) Changes in Benefit Terms - - - Contribution - Employer 2,451,000 (2,451,000)
Net Investment Income - 652,096 (652,096) Administrative Expenses - (6,167) 6,167 Benefit Payments (1,263,243) (1,263,243) - Net Changes 495,226 1,833,686 (1,338,460) Balance at June 30, 2020
(Measurement Date) 27,973,354 $ 12,001,643 $ 15,971,711 $ Increase (Decrease)
Change of Assumptions
The ACA excise tax was repealed in December 2019.
Change of Benefit Terms
There was no change of benefit terms.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(75)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Changes in the Net OPEB Liability (Continued)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Discount Rate 1% Increase
5.25% 6.25% 7.25%
Net OPEB Liability 19,569,256 $ 15,971,711 $ 12,983,957 $
Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using health-care cost trend rates that are one percentage point lower (6.25% Non-Medicare and 5.30% Medicare) or one percentage point higher (8.25% Non-Medicare and 7.30% Medicare) than current health-care cost trend rates:
Current Health Care
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability 12,565,111 $ 15,971,711 $ 20,114,372 $
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $1,446,501. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to
Measurement Date 1,132,629 $ - $
Differences Between Actual and Expected
Experience 1,109,658 -
Change in Assumptions - 1,415,064 Differences Between Projected and Actual Earnings 49,080 - Total 2,291,367 $ 1,415,064 $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(76)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
An amount of $1,132,629, which is reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30, Amount
2022 (39,915) $
2023 (31,906)
2024 (34,839)
2025 (18,704)
2026 (43,611)
Thereafter (87,351)
Total (256,326) $
Payable to the OPEB Plan
At June 30, 2021, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2021.
NOTE 10 STADIUM OPERATING LEASE
The City leased the Lancaster Municipal Stadium to Jethawks Baseball, LP, which operated the Jethawks, a California “A” League professional baseball team franchise. The cost and carrying amount of the previously leased assets was $7,060,660 and $3,530,330, respectively with the term of the lease from January 9, 2015 to January 9, 2025. During this lease, the city was to receive annual rent of $55,750 subject to CPI increases after the fourth year. Jethawks Baseball, LP did not receive an invitation from a Major League Baseball team for the 2021 season. The City reached an agreement to terminate the JetHawk’s lease and official Notice of Termination was dated February 3, 2022.
NOTE 11 ANTELOPE VALLEY TRANSIT AUTHORITY JOINT VENTURE The City is a member of the Antelope Valley Transit Authority (the Transit Authority), a joint powers authority of the County of Los Angeles and the cities of Palmdale and Lancaster.
The Transit Authority was formed to provide public transit service to Palmdale and Lancaster. The governing board consists of one person from each member agency. Each member has one vote.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(77)
NOTE 11 ANTELOPE VALLEY TRANSIT AUTHORITY JOINT VENTURE (CONTINUED) Description of Debt
On October 1, 1991, the California Special Districts Association Finance Corporation, on behalf of the Los Angeles County Transportation Commission, issued Certificate of Participation Notes in the amount of $19,340,000. This issue was for the benefit of several different transit authorities. The Certificates of Participation were issued prior to the formation of the Antelope Valley Transit Authority. Los Angeles County participated in this issuance on behalf of the Transit Authority to provide financing of $7,690,000 for the purchase of transportation equipment.
Subsequent to the Certificate of Participation issue, the Transit Authority entered into a “Reimbursement Agreement” with the County of Los Angeles to repay the obligation incurred by the County on their behalf.
As of June 30, 2021 (latest information available), Antelope Valley Transit Authority’s financial position was as follows:
Assets 109,346,570 $
Deferred Outflow of Resources 717,467 $
Liabilities 5,297,537 $
Deferred Inflows of Resources 10,284 $
Net Position 104,756,216 $
Revenues 45,913,444 $
Expenses 40,928,155
Changes in Net Position 4,985,289 $
The Transit Authority is funded, in part, by revenues allocated to the City and redirected to the Transit Authority and, in part, by a shared formula based on the level of service provided to the jurisdiction. The City of Lancaster is the primary recipient of local services from the Transit Authority. The City does not have an equity interest or a financial responsibility because the Transit Authority does not depend on revenue from the City to continue existence.
Separate financial statements of the Transit Authority are available from the Transit Authority office located at 1031 W. Avenue L-12, Lancaster, California 93534.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(78)
NOTE 12 SPECIAL ASSESSMENT DEBT WITH NO CITY COMMITMENT The City issued special tax and assessment bonds on behalf of property owners, pursuant to the Improvement Bond Act of 1915 and the Mello-Roos Community Facilities Act of 1982, to finance the acquisition and construction of certain infrastructure improvements within the assessment districts and community facilities districts.
The City acts solely as an agent for those paying special tax and assessments and remits the amounts collected to the bondholders of these fixed-rate Improvement Bond Act of 1915 and Mello-Roos Community Facilities Act of 1982 issues. The City is acting as an agent and is in no way liable for the special assessment debt.
The bonds are not general obligations of the City but are limited obligations, payable solely from special tax and assessments. The City has no obligation beyond the balances in the designated custodial funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of the available funds of the City.
Neither the faith and credit nor the taxing power of the City, or the state of California, or any political subdivision thereof is pledged to the payment of these bonds. The noncommittal debt amounts were paid off during the year.
NOTE 13 RISK MANAGEMENT
The City is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City handled those risks with the purchase of commercial insurance. The City maintained liability insurance coverage up to a limit of $10,000,000 with $250,000 self-insurance retention for its general liabilities. Workers’ compensation insurance is provided by PRISM, with statutory limit coverage. The City also maintained property coverage including earthquake and flood.
At June 30, 2021, $3,113,000 has been accrued for general liability claims. This amount represents an estimate of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience, modified for current trends and information.
While the ultimate amount of losses incurred through June 30, 2021, is dependent on future developments, based upon information from the City Attorney, the City’s claims administrators, and others involved with t he administration of the programs, City management believes the accrual is adequate to cover such losses.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(79)
NOTE 13 RISK MANAGEMENT (CONTINUED)
Changes in the claims liability amount in fiscal years 2020 and 2021 were as follows:
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Ended Liability Estimates Payments Liability 2019 - 2020 2,046,000 $ 1,071,000 $ 480,000 $ 2,637,000 $ 2020 - 2021 2,637,000 942,000 466,000 3,113,000
For workers’ compensation insurance, the City has transferred all risk of loss with the purchase of commercial insurance policies and has not reported any estimated loss in the financial statements.
There were no significant reductions in insurance coverage from the previous year. In addition, insurance coverage exceeded the amount of settlements for each of the past three fiscal years.
NOTE 14 CONTINGENT LIABILITIES
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinabl e, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying financial statements.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(80)
NOTE 15 CONSTRUCTION COMMITMENTS
The following material construction commitments existed at June 30, 2021:
Expenditures
Contract to date as of Remaining
Project Name Amount June 30, 2021 Commitments
2020 FALL PVMT MGMT PROGRAM 10,764,508$ 235,510 $ 10,528,998 $ 2020 SIDEWALK, CURB AND GUTTER 506,470 457,911 48,559 2020 SUMMER PVMT MGMT PROGRAM 6,379,016 4,041,971 2,337,045 2021 PAVEMENT MGMT PROGRAM 1,056,424 - 1,056,424 2021 SUMMER PMP 392,417 209,768 182,649 AVE J/SR 14 INTERCHANGE 7,112,577 2,579,604 4,532,973 AVE K/SR 14 INTERCHANGE -MSR R 2,414,006 2,202,733 211,273 AVE L & SR 14 INTERCHANGE 902,705 588,657 314,048 AVE M/SR 14 INTERCHANGE -MSR R 2,332,859 1,667,003 665,856 AVTA BUS STOP IMPROVEMENTS 572,869 31,089 541,780 BLVD SATELLITE PKG (MARRIOTT) 184,985 - 184,985 DRAINAGE IMP, 30W & AVE J-8 215,481 34,571 180,910 LANC BAPTIST CHURCH EV CHARGER 66,384 - 66,384 LANCASTER HEALTH DISTRICT 2,670,262 1,684,359 985,903 MPDF CHALLENGER CHNL-K TO BLVD 294,839 56,803 238,036 TRAFFIC CALMING 146,708 - 146,708 TRAFFIC OVERHEAD SIGN REPLACE 200,000 85,581 114,419 TRANSPORTATION MANAGEMENT CENTER 219,680 52,960 166,720
NOTE 16 LANCASTER CHOICE ENERGY
Lancaster Choice Energy (CLE) has registered as a Community Choice Aggregator (CCA) for the purpose of delivering electric services to certain customers located within the City of Lancaster. LCE entered into an administrative services agreement with California Choice Energy Authority (CCEA), for administration, energy procurement, contract negotiation, contract administration, resource planning services, and other services provided to the LCE program. This contract has a term of the longer of three years from the effective date or the longest term of any energy contract to which the CCEA is a party on behalf of LCE.
Payments to CCEA for the fiscal year ended June 30, 2021, totaled $1,562,841.
CCEA master “Take or Pay” agreements with different energy providers that PRIME uses to purchase energy to provide for future electric capacity for customers. LCE enters into separate contracts with the providers and these contracts constitute an obligation of LCE to purchase a set volume of electricity at a set price throughout the terms of the contracts.
During the fiscal year ended June 30, 2021, the total payments made by LCE under the take or pay contracts was $41,658,491. At June 30, 2021, the remaining take or pay contracts for LCE is $29,667,514 through December 2028.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(81)
NOTE 17 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency of the City of Lancaster Redevelopment Agency on February 1, 2012, as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities.
Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2021, was as follows:
Balance Balance Due Due in More
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Year Other Borrowings:
2004 County Fire 2,915,000 $ - $ 675,000$ 2,240,000 710,000 $ 1,530,000 $ 2004 County - Sheriff 6,245,000 - 1,450,000 4,795,000 1,520,000 3,275,000 2015 Housing A&B 20,395,000 - 995,000 19,400,000 1,045,000 18,355,000 2017 Housing 58,050,000 - 2,335,000 55,715,000 2,540,000 53,175,000 2010 Non-Housing
Lease Revenue 4,205,000 - 170,000 4,035,000 180,000 3,855,000 2016 A-1 & A-2
Non-Housing 52,820,000 - 2,700,000 50,120,000 2,780,000 47,340,000 2016 B-1 & B-2
Non-Housing 15,045,000 - 660,000 14,385,000 695,000 13,690,000 Total Successor Agency 159,675,000 - 8,985,000 150,690,000 9,470,000 141,220,000 Unamortized Original Issue
(Discount) or Premium 11,005,036 - 672,260 10,332,776 - 10,332,776 Net Long-Term Debt 170,680,036$ - $ 9,657,260$ 161,022,776 $ 9,470,000 $ 151,552,776 $
Combined Tax Allocation Notes and Bonds
a. On December 15, 2004, the Successor Agency issued $10,200,000 of Combined Redevelopment Project Areas (Fire Protection Facilities Project), Tax Allocation Refunding Bonds, Issue of 2004. Interest on these bonds is payable semiannually on June 1 and December 1 of each year, commencing June 1, 2006. Interest rates vary from 2.00% to 5.25%. Principal redemptions are payable starting December 1, 2006 through December 1, 2023. The proceeds of this bond issue were utilized to refund all of the Agency’s outstanding Combined Redevelopment Project Areas (Fire Protection Facilities Project) Tax Allocation Bonds, Issue of 1993, pay costs of issuing the Bonds, and fund a debt service reserve account. The outstanding balance at June 30, 2021, is $2,240,000.
b. On December 15, 2004, the Successor Agency issued $21,540,000 of Combined Redevelopment Project Areas (Sheriff’s Facility Project), Tax Allocation Refunding Bonds, Issue of 2004. Interest on these bonds is payable semiannually on June 1 and December 1 of each year, commencing June 1, 2006. Interest rates vary from 2.00% to
5.25%. Principal redemptions are payable starting December 1, 2006 through December 1, 2019. The proceeds of this bond issue were utilized to refund all of the Agency’s outstanding Combined Redevelopment Project Areas (Sheriff’s Facility Project) Tax Allocation Bonds, Issue of 1993, pay costs of issuing the Bonds, and fund a debt service reserve account. The outstanding balance at June 30, 2021, is $4,795,000.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(82)
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Combined Tax Allocation Notes and Bonds (Continued)
c. On March 10, 2015, the Successor Agency issued $23,510,000 of Combined Redevelopment Project Areas (Housing Programs) Tax Allocation Refunding Bonds, issue of 2015A and B. This financing was undertaken to refund $23,510,000 in outstanding Agency debt. The principal portion of these bonds is payable from August 1, 2015 to 2026. Interest is payable semiannually on February 1 and August 1 of each year commencing on August 1, 2015. The outstanding balance at June 30, 2021, is $19,400,000.
d. On April 18, 2017, the Successor Agency issued $62,495,000 of Combined Redevelopment Project Areas (Housing Programs) Tax Allocation Refunding Bonds and $3,155,000 of Combined Redevelopment Project Areas (Housing Programs) Taxable Tax Allocation Refunding Bonds issue of 2017. This financing was undertaken to advance refund $47,750,000 of Combined Housing Financing Series 2003 Bonds and $24,680,000 of Combined Redevelopment Project Areas (Housing Program) Tax Allocation Bonds issue 2009. The principal portion of these bonds is payable annually from August 1, 2017 to 2039. Interest is payable semiannually on February 1 and August 1 of each year, commencing on August 1, 2017. The outstanding balance at June 30, 2021, is $55,715,000.
e. On April 22, 2010, the Successor Agency issue $5,555,000 of Lancaster Redevelopment Agency, Lease Revenue Refunding Bonds (Lancaster Public Capital Improvement Projects), Issue of 2010. The purpose of these bonds was to (i) refund on a current basis the Lancaster Redevelopment Agency Lease Revenue Refunding Bonds (Lancaster Public Capital Improvement Projects) Issue of 1999, (ii) fund the Reserve Account, and (iii) pay costs of issuance of the Bonds. The principal portion of these bonds is payable from December 1, 2010 to December 1, 2035. Interest is payable semiannually at rates of 2.0% to 5.9% per annum, commencing December 1, 2010. The bonds are payable from lease payments to be made by the City of Lancaster to the Agency or its assignee.
The property covered by the lease consists of the Lancaster Performing Arts Center.
Neither the bonds nor the obligation of the City to make lease payments under the lease agreement constitutes an indebtedness of the City, the Agency, the state of California, or any political subdivision thereof, within the meaning of the Constitution of the State of California or otherwise. The outstanding balance at June 30, 2021, is $4,035,000.
f. On June 14, 2016, the Successor Agency issued $61,425,000 of Combined Redevelopment Project Areas (Non-Housing Programs) Tax Allocation Refunding Bonds, issue of 2016A-1 & A-2. This financing was undertaken to advance refund $71,312,000 in outstanding Agency debt. The principal portion of these bonds is payable from August 1, 2016 to 2038. Interest is payable semiannually on February 1 and August 1 of each year, commencing on August 1, 2016. The outstanding balance at June 30, 2021, is $50,120,000.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(83)
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Combined Tax Allocation Notes and Bonds (Continued)
g. On June 14, 2016, the Successor Agency issued $17,590,000 of Lancaster Redevelopment Project Area No. 5 and Project Area No. 6 (School District Pass- Throughs) Tax Allocation Refunding Bonds, issue of 2016 B-1 and B-2. This financing was undertaken to advance refund $21,763,000 in outstanding Agency debt. The principal portion of these bonds is payable from February 1, 2017 to 2037. Interest is payable semiannually on February 1 and August 1 of each year, commencing on August 1, 2016. The outstanding balance at June 30, 2021, is $14,385,000.
The annual requirements to amortize the outstanding bond indebtedness for the Lancaster Redevelopment Agency Bonds and Notes, as of June 30, 2021, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2022 9,470,000 $ 6,127,352 $ 15,597,352 $
2023 9,865,000 5,712,405 15,577,405
2024 10,295,000 5,261,761 15,556,761
2025 8,165,000 4,844,268 13,009,268
2026 8,215,000 4,469,389 12,684,389
2027 - 2031 46,655,000 16,611,166 63,266,166 2032 - 2036 48,980,000 6,107,679 55,087,679 2037 - 2041 9,045,000 582,225 9,627,225 Total 150,690,000 $ 49,716,245 $ 200,406,245 $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(84)
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low- and Moderate-Income Housing set-aside and pass-through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish low- and moderate-income housing projects, and to defease previously issued bonds. Assembly Bill 1 X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency.
Total principal and interest remaining on the debt is $200,406,245 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City and Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $17,010,422 and the debt service obligation on the bonds was $15,478,202 broken down as follows:
Received in
FY 20/21
Scope of Fund Recognized by Successor Agency
for enforceable Obligations:
Redevelopment Property Tax Trust Funds (RPTTF) 14,108,511$ Pass-Through Funds Remitted by Los Angeles
County Fire and Sheriff 2,498,572
Lease Revenue Funds Remitted by the City
of Lancaster 403,339
Total Funds Recognized by the Successor
Agency Available for the Payment of Debt
Services 17,010,422 $
Debt Service Obligations
Due in FY 20/21 Principal Due Interest Due Total
Non-Housing, Housing, and
School Bus (RPTTF) 6,690,000 $ 405,719 $ 7,095,719 $ County Fire and Sheriff Bonds
(Paid From Fire and Sheriff
Pass-Through Funds) 2,125,000 5,851,703 7,976,703 Lease Revenue Bonds
(Paid From Lease Payment
From City of Lancaster) 170,000 235,780 405,780 Total Successor Agency
Debt Service Obligations
FY 20/21 8,985,000 $ 6,493,202 $ 15,478,202 $
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(85)
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Due to the City of Lancaster and Lancaster Housing Authority
A. SERAF Advance
Advances were made in previous years in the amount of $24,303,115 to assist in accomplishing payment to the Educational Revenue Augmentation Fund from the former redevelopment agency low- and moderate-income housing fund. The advances are now payable to the Lancaster Housing Authority as a result of the dissolution of redevelopment. The outstanding balance at June 30, 2021, is $13,249,560. The Successor Agency made repayments totaling $3,705,153 to the Lancaster Housing Authority during the current fiscal years.
B. Prior Advances
In previous fiscal years, the City made multiple loans to the former Lancaster Redevelopment Agency. During the 2013-2014 fiscal year, many of those loans were reinstated as enforceable obligations of the Successor Agency and an additional $9,174,633 were reinstated in fiscal year 2015-2016. The outstanding principal totals $32,011,462; the interest at June 30, 2021, totals $22,291,234. The total amount due to the City and Housing Authority from the Successor Agency on these prior advances is $54,302,696. No repayments were made during the current fiscal year and accrued unpaid interest of $960,364 was added to the advance balance.
Defeasance of Debt
In prior years, the Agency defeased certain tax allocation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Agency’s financial statements.
At June 30, 2021, the following defeased bond issues are still outstanding:
Outstanding
Amount
The Combined Housing Financing Bonds 2003 Issue 2,040,000$ Tax Allocation Bonds (Housing Programs) 2009 Issue 22,005,000
Noncommitment Debt
The Agency has issued $94,710,000 of Residential Mortgage Revenue Bonds that have not been reflected in long-term debt because these bonds are special obligations payable solely from and secured by specific revenue sources described in the bond resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Agency, the state of California, or any political subdivision thereof, is pledged for the payment of these bonds.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(86)
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Insurance
The Successor Agency is covered under the City’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 13.
NOTE 18 DEFERRED COMPENSATION PLAN
The City has made available to its regular employees and mandatory for its temporary employees an Internal Revenue Code (IRC) Section 457(b) deferred compensation plan, whereby employees authorize the City to withhold funds from salary to be invested in the ICMA Retirement Corporation’s Deferred Compensation Plan. For temporary employees, the mandatory 457(b) contribution is in lieu of contributing to Social Security or CalPERS.
Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contributions under the plan. The City withholds employee contributions from employee’s payroll checks and transmits these monies to the plan providers on a bi-weekly basis. The City makes distributions from the plans based solely upon authorizations by the plan administrator.
Pursuant to changes in IRC Section 457, on January 2, 1997, the City formally established a plan level trust in which all assets and income of the 457 plan were placed. The plan assets, all property and rights purchased with such amount, and all income attributable to such amounts, property, or rights are held in trust for the exclusive benefit of the participants and their beneficiaries. These assets are not the property of the City and, as such, are not subject to the claims of the City’s general creditors. The City has minimal involvement in the administration of the 457 plan and, therefore, lacks fiduciary accountability. As a result, the assets of the 457 plan are not reflected in the financial statements.
NOTE 19 DEFINED CONTRIBUTION PLAN
The City provides a tax-qualified retirement savings plan under Section 401(a) of the Internal Revenue Code to all regular employees. The Plan is a defined contribution plan and benefits depend solely on amounts contributed to the plan and investment earnings. The Plan is administered by the ICMA Retirement Corporation, and the City Council has the authority for establishing and amending the plan provisions. There were 241 participants in the Plan for the year ended June 30, 2021. Employer contributions are based on an employee’s tier of eligibility. For the year ended June 30, 2021, employer contributions totaled $834,479. There are no required employee contributions.
As is the case with the 457 plan, the 401(a) plan assets are held in trust for distribution to employees and their beneficiaries. Funds may be withdrawn by participants upon termination of employment or retirement. The City lacks fiduciary accountability and as such, the assets of the 401(a) plan are not reflected in the financial statements.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(87)
NOTE 20 RETIREE HEALTH SAVINGS PLAN
The City provides a Retiree Health Savings Plan (RHSP) under IRC Section 105(h) to all regular employees hired after July 1, 2012. This defined contribution benefit is in lieu of any other postemployment benefits (OPEB) for these employees. There is a mandatory five-year vesting period to be eligible for distribution from this plan.
Additionally, the City provides a RHSP for mid-management and executive-management employees, employees opting out of other postemployment benefits, and employees opting out of all medical coverage or opting for no dependent medical coverage. The City Council has the authority for establishing and amending plan provisions. There were 240 individuals in the RHSP at June 30, 2021. Contributions for the year ended June 30, 2021, totaled $601,816.
As with the other ICMA plans, assets of the RHSP are held in trust, eligible for withdrawal upon termination of employment, are not assets of the City, and are not reflected in the financial statements.
NOTE 21 RESTATEMENTS OF NET POSITION/FUND BALANCE
The City adopted the provision of Governmental Accounting Standard Board (GASB) Statement No. 84, Fiduciary Activities, which became effective during the year ended June 30, 2021. The intention of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.
The implementation of the statement required the City to report the beginning net position of the Custodial Funds at $392,875.
Additionally, the City had restatements of net position/fund balance as of July 1, 2020, as follows:
Lancaster Successor
Governmental General Housin g A gency of the
Activities Fund Authorit y Former RDA
Net Position/Fund Balance - Beginning of Year, as
Previously Reported 983,489,489 $ 65,281,967 $ 88,711,829 $ (214,752,911)$ Decrease in Net Position/Fund Balance for Write Down
of Land Held for Resale
(3,277,933) - (3,277,933) - Increase (Decrease) in Net Position/Fund Balance for
Reclassification of Land Held for Resale 1,501,471 (2,782,104) - (1,669,501) Net Position/Fund Balance - Beginning of Year,
as Restated 981,713,027 $ 62,499,863 $ 85,433,896 $ (216,422,412)$
NOTE 22 SUBSEQUENT EVENTS
On October 12, 2021, the Lancaster Power Authority issued $19.3 million Revenue Refunding Bonds, Series 2021 (Solar Renewable Energy Program) to provide funds to refinance the 2012 Power Authority Revenue Bonds. The refinance of these bonds will create savings of approximately $400,000 per year for the first four years and approximately $340,000 in subsequent years through final maturity.
(88)
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS CalPERS PENSION PLANS
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(89)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total Pension Liability:
Service Cost 3,812,712 $ 3,984,412 $ 4,089,766 $ 4,120,166 $ Interest on Total Pension Liability 13,228,441 12,492,922 11,749,454 11,094,780 Differences Between Expected and Actual Experience 1,608,904 1,303,631 925,375 (449,010) Changes in Assumptions - - (1,119,628) 9,732,561 Benefit Payments, Including Refunds of Employee
Contributions (8,246,671) (7,180,971) (6,203,088) (5,495,333) Net Change in Total Pension Liability 10,403,386 10,599,994 9,441,879 19,003,164 Total Pension Liability - Beginning of Year 185,620,817 175,020,823 165,578,944 146,575,780 Total Pension Liability - End of Year (a) 196,024,203 $ 185,620,817 $ 175,020,823 $ 165,578,944 $ Plan Fiduciary Net Position:
Contributions - Employer 6,104,781 $ 5,376,086 $ 4,949,350 $ 4,609,250 $ Contributions - Employee 1,680,632 1,594,327 1,606,648 1,558,516 Net Investment Income (Loss) 6,427,646 7,935,508 9,429,980 11,061,811 Benefit Payments (8,246,671) (7,180,971) (6,203,088) (5,495,333) Net Plan to Plan Resource Movement - 277 (277) - Administrative and Other Expense (179,482) (85,403) (498,688) (145,875) Net Change in Plan Fiduciary Net Position 5,786,906 7,639,824 9,283,925 11,588,369 Plan Fiduciary Net Position - Beginning of Yea
r 127,314,703 119,674,879 110,390,954 98,802,585 Plan Fiduciary Net Position - End of Year (b) 133,101,609 $ 127,314,703 $ 119,674,879 $ 110,390,954 $ Net Pension Liability (Asset) - Ending (a)-(b) 62,922,594 $ 58,306,114 $ 55,345,944 $ 55,187,990 $ Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 67.90% 68.59% 68.38% 66.67% Covered Payroll 20,370,100 $ 19,995,467 $ 20,482,128 $ 19,501,764 $ Net Pension Liability as Percentage of Covered Payroll 308.90% 291.60% 270.22% 282.99% Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
There were no significant changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was reduced from 7.65% to 7.15%.
From fiscal year June 30, 2018 to June 30, 2019:
There were no significant changes in assumptions.
From fiscal year June 30, 2019 to June 30, 2020:
There were no significant changes in assumptions.
From fiscal year June 30, 2020 to June 30, 2021:
There were no significant changes in assumptions.
* Fiscal year 2015 was the fist year of implementation, and therefore, only seven years are shown.
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS CalPERS PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(90)
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period Ended June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:
Service Cost 3,757,280 $ 3,659,838 $ 3,783,673 $ Interest on Total Pension Liability 10,446,457 9,650,056 9,015,665 Differences Between Expected and Actual Experience 1,362,060 (445,730) - Changes in Assumptions - (2,517,116) - Benefit Payments, Including Refunds of Employee
Contributions (4,608,628) (4,011,772) (3,666,038) Net Change in Total Pension Liability 10,957,169 6,335,276 9,133,300 Total Pension Liability - Beginning of Year 135,618,611 129,283,335 120,150,035 Total Pension Liability - End of Year (a) 146,575,780 $ 135,618,611 $ 129,283,335 $ Plan Fiduciary Net Position:
Contributions - Employer 4,077,018 $ 3,803,574 $ 3,549,119 $ Contributions - Employee 1,628,815 1,611,229 1,556,684 Net Investment Income (Loss) 535,654 2,090,380 13,752,204 Benefit Payments (4,608,628) (4,011,772) (3,666,038) Net Plan to Plan Resource Movement - - - Administrative and Other Expense (59,256) (109,427) - Net Change in Plan Fiduciary Net Position 1,573,603 3,383,984 15,191,969 Plan Fiduciary Net Position - Beginning of Year 97,228,982 93,844,998 78,653,029 Plan Fiduciary Net Position - End of Year (b) 98,802,585 $ 97,228,982 $ 93,844,998 $ Net Pension Liability (Asset) - Ending (a)-(b) 47,773,195 $ 38,389,629 $ 35,438,337 $ Plan Fiduciary Net Position as a Percentage of
the Total Pension Liability 67.41% 71.69% 72.59%
Covered Payroll 19,428,612 $ 19,407,546 $ 19,312,337 $ Net Pension Liability as Percentage of Covered Payroll 245.89% 197.81% 183.50%
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(91)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially Determined Contribution 6,735,678 $ 6,104,781 $ 5,376,086 $ 4,949,350 $ Contributions in Relation to the Actuarially
Determined Contributions (6,735,678) (6,104,781) (5,376,086) (4,949,350) Contribution Deficiency (Excess) - $ - $ - $ - $ Covered Payroll 20,158,000 $ 20,370,100 $ 19,995,467 $ 20,482,128 $ Contributions as a Percentage of Covered
Payroll 33.41% 29.92% 26.81% 24.16%
Notes to Schedule:
Valuation Date 6/30/2018 6/30/2017 6/30/2016 6/30/2015
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Inflation 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2)
Investment rate of Return 7.375% (3) 7.375% (3) 7.375% (3) 7.50% (3) Retirement age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service, and type of employment. (3) Net of pension plan investment expense, including inflation. (4) 50 years for 2.7% @ 55 and 2% @ 60, 52 years for 2% @ 62. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the fist year of implementation, and therefore, only seven years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(92)
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Actuarially Determined Contribution 4,609,250 $ 4,077,018 $ 3,803,574 $ Contributions in Relation to the Actuarially
Determined Contributions (4,609,250) (4,077,018) (3,803,574) Contribution Deficiency (Excess) - $ - $ - $ Covered Payroll 19,501,764 $ 19,428,612 $ 19,407,546 $ Contributions as a Percentage of Covered
Payroll 22.71% 20.96% 19.60%
Notes to Schedule:
Valuation Date 6/30/2014 6/30/213 6/30/2012
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial Cost Method Entry Age Entry Age Entry Age
Amortization Method (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Smoothed
Market Method
Inflation 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2)
Investment rate of Return 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4)
Mortality (5) (5) (5)
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET POSITION LIABILITY AND RELATED RATIOS
PARS PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(93)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total Pension Liability:
Service Cost - $ 1,569$ 1,577 $ 1,485 $ Interest on Total Pension Liability 545,037 569,756 568,236 578,723 Differences Between Expected and Actual Experience - 134,522 - 89,030 Changes in Assumptions 1,173,341 439,122 (188,575) (161,368) Changes in benefits - - - - Benefit Payments, Including Refunds of Employee
Contributions (705,047) (694,049) (678,957) (665,644) Net Change in Total Pension Liability 1,013,331 450,920 (297,719) (157,774) Total Pension Liability - Beginning of Year 11,924,427 11,473,507 11,771,226 11,929,000 Total Pension Liability - End of Year (a) 12,937,758 $ 11,924,427 $ 11,473,507 $ 11,771,226 $ Plan Fiduciary Net Position:
Contributions - Employer - $ - $ - $ - $ Contributions - Employee - - - - Net Investment Income (Loss) 262,205 536,880 551,796 881,421 Administrative Expense (16,973) (17,313) (18,115) (18,063) Benefit Payments (705,047) (694,049) (678,957) (665,644) Net Change in Plan Fiduciary Net Position (459,815) (174,482) (145,276) 197,714 Plan Fiduciary Net Position - Beginning of Year 8,904,872 9,079,354 9,224,630 9,026,916 Plan Fiduciary Net Position - End of Year (b) 8,445,057 $ 8,904,872 $ 9,079,354 $ 9,224,630 $ Net Pension Liability (Asset) - Ending (a)-(b) 4,492,701 $ 3,019,555 $ 2,394,153 $ 2,546,596 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 65.27% 74.68% 79.13% 78.37%
Covered Payroll None None None None
Net Pension Liability as Percentage of Covered Payroll N/A N/A N/A N/A Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 6.50% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
The discount rate was updated from 6.50% to 4.99% and the expected long-term rate of return on investments was updated from 6.50% to 6.25%.
From fiscal year June 30, 2017 to June 30, 2018:
The discount rate was updated from 4.97% to 4.99% and the expected long-term rate of return on investments was updated from 6.25% to 6.00%.
From fiscal year June 30, 2018 to June 30, 2019:
The discount rate was updated from 4.99% to 5.12%.
From fiscal year June 30, 2019 to June 30, 2020:
The discount rate was updated from 5.12% to 4.71% and mortality improvement scale was updated to Scale MP-2019.
From fiscal year June 30, 2020 to June 30, 2021:
The discount rate was updated from 4.71% to 3.83%
* Fiscal year 2015 was the fist year of implementation, and therefore, only seven years are shown.
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET POSITION LIABILITY AND RELATED RATIOS
PARS PENSION PLAN (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(94)
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period Ended June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:
Service Cost 1,000 $ 1,000 $ 1,000 $ Interest on Total Pension Liability 636,000 605,000 607,000 Differences Between Expected and Actual Experience - 156,000 - Changes in Assumptions 1,837,000 350,000 - Changes in benefits - - - Benefit Payments, Including Refunds of Employee
Contributions (652,000) (640,000) (627,000) Net Change in Total Pension Liability 1,822,000 472,000 (19,000) Total Pension Liability - Beginning of Year 10,107,000 9,635,000 9,654,000 Total Pension Liability - End of Year (a) 11,929,000 $ 10,107,000 $ 9,635,000 $ Plan Fiduciary Net Position:
Contributions - Employer - $ - $ - $ Contributions - Employee - - - Net Investment Income (Loss) (108) 230,000 1,204,000 Administrative Expense (23,332) (20,000) (20,000) Benefit Payments (665,644) (640,000) (627,000) Net Change in Plan Fiduciary Net Position (689,084) (430,000) 557,000 Plan Fiduciary Net Position - Beginning of Year 9,716,000 10,146,000 9,589,000 Plan Fiduciary Net Position - End of Year (b) 9,026,916 $ 9,716,000 $ 10,146,000 $ Net Pension Liability (Asset) - Ending (a)-(b) 2,902,084 $ 391,000 $ (511,000) $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 75.67% 96.13% 105.30%
Covered Payroll None None None
Net Pension Liability as Percentage of Covered Payroll N/A N/A N/A
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
PARS PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(95)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially Determined Contribution 233,631 $ 311,000 $ 337,000 $ 89,000 $ Contributions in Relation to the Actuarially
Determined Contributions - - - - Contribution Deficiency (Excess) 233,631 $ 311,000 $ 337,000 $ 89,000 $ Covered Payroll None None None None
Contributions as a Percentage of
Covered Payroll N/A N/A N/A N/A
Notes to Schedule:
Valuation Date 6/30/2019 6/30/2017 6/30/2017 6/30/2015
Methods and Assumptions Used to
Determine Contribution Rates:
Single and Agent Employers Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal
Amortization Method Level Dollar Level Dollar Level Dollar Level Dollar Remaining Amortization Period 10 Years Open 10 Years Open 10 Years Open 10 Years Open Asset Valuation Method Market Value Market Value Market Value Market Value Inflation 2.75% 2.75% 2.75% 3.00%
Salary Scale:
Aggregate 3.00% 3.00% 3.00% 3.25%
Merit (CalPERS Experience Study) 1997-2015 1997-2015 1997-2015 1997-2011 Investment Rate of Return:
06/30/19 Valuation 6.0%, net of investment expenses only 06/30/17 Valuation 6.5%, net of investment expenses only 06/30/15 Valuation 6.5%, net of investment expenses only 06/30/13 Valuation 6.25%, net of investment and administrative expenses Mortality Assumptions for Service
Retirements and Beneficiaries:
06/30/19 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2019. 06/30/17 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2017. 06/30/15 Valuation Mortality Table projected fully generational with Scale MP-2014 modified to converge to ultimate improvement rates in 2022.
06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generational with Scale AA.
Mortality Assumptions for Disability
Retirements:
06/30/17 and 6/30/19 Valuation CalPERS 1997-2015 Experience Study, Mortality Table projected fully generational with Society of Actuaries Scale MP-2017.
06/30/15 Valuation CalPERS 1997-2011 Experience Study Mortality Table for nonwork Disabled Retirees projected fully generational with Scale MP-2014 modified to converge to ultimate improvement rates in 2022.
06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generational with Scale AA.
* Fiscal year 2015 was the fist year of implementation, and therefore, only seven years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
PARS PENSION PLAN (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(96)
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Actuarially Determined Contribution 93,000 $ 52,000 $ - $ Contributions in Relation to the Actuarially
Determined Contributions - - - Contribution Deficiency (Excess) 93,000 $ 52,000 $ - $ Covered Payroll None None None
Contributions as a Percentage of
Covered Payroll N/A N/A N/A
Notes to Schedule:
Valuation Date 6/30/2015 6/30/213 6/30/213
Methods and Assumptions Used to
Determine Contribution Rates:
Single and Agent Employers Entry Age Entry Age Entry Age Normal Normal Normal
Amortization Method Level Dollar Level Dollar Level Dollar Remaining Amortization Period 10 Years Open 10 Years Closed 10 Years Open Asset Valuation Method Market Value Market Value Market Value Inflation 3.00% 3.00% 3.00%
Salary Scale:
Aggregate 3.25% 3.25% 3.25%
Merit (CalPERS Experience Study) 1997-2011 1997-2007 1997-2007
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(97)
Fiscal Year End 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service Cost 544,912 $ 514,497 $ 549,862 $ 533,847 $ Interest on Total OPEB Liability 1,711,964 1,640,380 1,574,306 1,500,990 Change in Assumption (498,407) (1,320,939) - - Differnce Between Expected and Actual
Experience - 1,492,298 - - Benefit Payments, Including Refunds of
Employee Contributions (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Total OPEB Liability 495,226 1,166,861 1,220,288 1,183,104 Total OPEB Liability - Beginning of Year 27,478,128 26,311,267 25,090,979 23,907,875 Total OPEB Liability - End of Year (a) 27,973,354 27,478,128 26,311,267 25,090,979 Plan Fiduciary Net Position:
Contributions - Employer 2,451,000 2,973,720 2,521,850 2,757,002 Net Investment Income 652,096 717,403 470,766 400,018 Administrative Expenses (6,167) (2,205) (11,481) (3,027) Benefit Payments (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Plan Fiduciary Net Position 1,833,686 2,529,543 2,077,255 2,302,260 Plan Fiduciary Net Position - Beginning of Year 10,167,957 7,638,414 5,561,159 3,258,899 Plan Fiduciary Net Position - End of Year (b) 12,001,643 10,167,957 7,638,414 5,561,159 Net OPEB Liability - Ending (a)-(b) 15,971,711 $ 17,310,171 $ 18,672,853 $ 19,529,820 $ Plan Fiduciary Net Position as a Percentage of the
Net OPEB Liability 42.90% 37.00% 29 .03% 22.16%
Covered - Employee Payroll 20,370,100 $ 21,066,497 $ 19,015,391 $ 20,878,494 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 78.41% 82.17% 98.20% 93.54%
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2017 to June 30, 2018:
There were no changes in assumptions.
From fiscal year June 30, 201 to June 30, 2019:
Mortality improvement scale was updated to Scale MP-2019 Assumed plan elections at retirement were updated
Spousal coverage assumption was updated from 50% to 30% * Fiscal year 2018 was the first year of implementation and therefore only four years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS – OPEB
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(98)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Contractually Required Contribution
(Actuarially Determined) 1,985,527 $ 1,973,000 $ 2,009,000 $ 2,099,000 $ Contributions in Relation to the Actuarially
Determined Contributions (1,132,629) (2,451,000) (2,973,720) (2,521,850) Contribution Deficiency (Excess) 852,898 $ (478,000) $ (964,720) $ (422,850) $ Covered - Employee Payroll 21,125,169 $ 20,370,100 $ 21,066,497 $ 19,015,391 $ Contributions as a Percentage of
Covered - Employee Payroll 5.36% 12.03% 14.12% 13.26%
Notes to Schedule:
Valuation Date 6/30/2019 6/30/2017 6/30/2017 6/30/2015
Methods and Assumptions Used to
Determine Contribution Rates:
Single and Agent Employers Entry Age Entry Age Entry age Entry age Amortization Method Level Dollar Level Dollar L evel dollar Level dollar Amortization Period 24 Year Fixed 25 Year Fixed 26 Year Fixed 27 Year Fixed Period Period Period Period
Inflation 2.75% 2.75% 2.75% 3.00%
Mortality CalPERS CalPERS CalPERS CalPERS
1997-2015 1997-2015 1997-2015 1997-2011
Experience Experience Experience Experience
Mortality Improvements Mortality Mortality Mortality Mortality Projected Fully Projected Fully Projected Fully Projected Fully Generational Generational Generational Generational
With Scale With Scale With Scale With Scale
MP-2019 MP-2017 MP-2017 MP-2014
Health Care Trend Rates:
06/30/15 Valuation Non-Medicare 7.50% decreasing to 5.00% in 2021, Medicare 7.80% decreasing to
5.00% in 2021
06/30/17 Valuation Non-Medicare 7.50% decreasing to 4.00% in 2076, Medicare 6.50% decreasing to
4.00% in 2076
06/30/19 Valuation Non-Medicare 7.25% decreasing to 4.00% in 2076, Medicare 6.30% decreasing to
4.00% in 2076
* Fiscal year 2018 was the first year of implementation and therefore only four years are shown.
(99)
SUPPLEMENTARY INFORMATION
(100)
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(101)
Landscape Housing and
Community Maintenance Community
Gas Tax Services District Development
ASSETS
Pooled Cash and Investments 2,094,758 $ 120,010 $ 1,508,113 $ 2,696,807 $ Receivbles:
Accounts 10,743 36 11,758 - Taxes 394,197 - 12,863 - Accrued Interest 9,531 - - - Due From Other Governments 546,281 - 27,841 443,780 Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - 224,766 Total Assets 3,055,510 $ 120,046 $ 1,560,575 $ 3,365,353 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 410,718 $ - $ 219,700$ 84,776 $ Accrued Liabilities 131,654 - 9,591 1,526 Unearned Revenues - - - - Due to Other Funds - - - 524,861 Total Liabilities 542,372 - 229,291 611,163
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - - 242,514 Total Deferred Inflows of Resources - - - 242,514
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - - Restricted:
Community Development Projects - 120,046 - 2,511,676 Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services 2,513,138 - 1,331,284 - Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Assigned:
Capital Projects - - - - Unassigned - - - - Total Fund Balances (Deficits) 2,513,138 120,046 1,331,284 2,511,676 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 3,055,510 $ 120,046 $ 1,560,575 $ 3,365,353 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(102)
HOME Bikeway
Program Proposition A Improvement Proposition C
ASSETS
Pooled Cash and Investments 944,674 $ 3,730,958 $ - $ 5,406,644$ Receivbles:
Accounts - - - - Taxes - - - - Accrued Interest - 8,108 96 11,535 Due From Other Governments - - 2,012 - Notes and Loans, Net 590,060 - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 1,534,734 $ 3,739,066 $ 2,108 $ 5,418,179$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 289,006$ - $ - $ Accrued Liabilities - 2,440 - - Unearned Revenues 339,231 - - - Due to Other Funds - - 1,634 - Total Liabilities 339,231 291,446 1,634 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - 2,012 - Total Deferred Inflows of Resources - - 2,012 -
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - - Restricted:
Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services - 3,447,620 - 5,418,179 Housing and Neighborhood Revitalization 1,195,503 - - - Capital Projects - - - - Assigned:
Capital Projects - - - - Unassigned - - (1,538) - Total Fund Balances (Deficits) 1,195,503 3,447,620 (1,538) 5,418,179 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,534,734 $ 3,739,066 $ 2,108 $ 5,418,179$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(103)
Developer
Federal State Parks Fees -
Grants Grants Development Signals
ASSETS
Pooled Cash and Investments 9,074 $ 252,156 $ 759,004 $ 2,365,139 $ Receivbles:
Accounts 2,111,671 311,489 1,000 99,450 Taxes - - - - Accrued Interest - 309 - - Due From Other Governments 694,788 1,672,749 - - Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 2,815,533 $ 2,236,703 $ 760,004 $ 2,464,589 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 391,512$ - $ - $ Accrued Liabilities - 250 - - Unearned Revenues - 348,208 - 98,058 Due to Other Funds 2,564,528 1,681,728 - - Total Liabilities 2,564,528 2,421,698 - 98,058
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 694,788 1,645,744 - - Total Deferred Inflows of Resources 694,788 1,645,744 - -
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - - Restricted:
Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - 760,004 - Development Services - - - 2,366,531 Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Assigned:
Capital Projects - - - - Unassigned (443,783) (1,830,739) - - Total Fund Balances (Deficits) (443,783) (1,830,739) 760,004 2,366,531 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 2,815,533 $ 2,236,703 $ 760,004 $ 2,464,589 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(104)
Developer Biological Traffic
Fees - Recycled Impact Impact
Drainage Water Fees Fees
ASSETS
Pooled Cash and Investments 10,979,464 $ 127,292 $ 640,061 $ 1,417,828 $ Receivbles:
Accounts 238,808 12,845 - 212,284 Taxes - - - - Accrued Interest - - - - Due From Other Governments - - - - Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 11,218,272 $ 140,137 $ 640,061 $ 1,630,112 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 12,269$ - $ - $ Accrued Liabilities - 2,351 - - Unearned Revenues 234,028 - - 210,494 Due to Other Funds - - - - Total Liabilities 234,028 14,620 - 210,494
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - - - Total Deferred Inflows of Resources - - - -
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - - Restricted:
Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - 125,517 - - Development Services 10,984,244 - 640,061 1,419,618 Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Assigned:
Capital Projects - - - - Unassigned - - - - Total Fund Balances (Deficits) 10,984,244 125,517 640,061 1,419,618 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 11,218,272 $ 140,137 $ 640,061 $ 1,630,112 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(105)
Lancaster
Drainage
Maintenance Miscellaneous Traffic
AQMD District Grants Safety
ASSETS
Pooled Cash and Investments - $ 1,960,057$ 12,527 $ 94,313 $ Receivbles:
Accounts - 60,515 - - Taxes - 27,425 - - Accrued Interest - - - - Due From Other Governments - - - 23,255 Notes and Loans, Net - - - - Prepaid Items - 114,493 - - Land Held for Resale - - - - Total Assets - $ 2,162,490$ 12,527 $ 117,568 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 61,779$ - $ - $ Accrued Liabilities - 30,077 - - Unearned Revenues - - - - Due to Other Funds 39,252 - - - Total Liabilities 39,252 91,856 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - - - Total Deferred Inflows of Resources - - - -
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - 114,493 - - Restricted:
Community Development Projects - - 12,527 - Public Safety - - - 117,568 Parks, Recreation, and Arts - - - - Development Services - 1,956,141 - - Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Assigned:
Capital Projects - - - - Unassigned (39,252) - - - Total Fund Balances (Deficits) (39,252) 2,070,634 12,527 117,568 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances - $ 2,162,490$ 12,527 $ 117,568 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(106)
Zero-Net
Energy Solar
Mitigation LA County
In Lieu Reimbursement MTA Grant
ASSETS
Pooled Cash and Investments 106,700 $ 114,281 $ 1,630,156 $ Receivbles:
Accounts - - 535,766 Taxes - - -
Accrued Interest - - - Due From Other Governments - 337,084 688,078 Notes and Loans, Net - - - Prepaid Items - - - Land Held for Resale - - - Total Assets 106,700 $ 451,365 $ 2,854,000 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 55,000$ - $ Accrued Liabilities - - - Unearned Revenues - 114,281 1,427,000 Due to Other Funds - 282,083 1,427,000 Total Liabilities - 451,364 2,854,000
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - 179,569 375,893 Total Deferred Inflows of Resources - 179,569 375,893
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - Restricted:
Community Development Projects - - - Public Safety - - - Parks, Recreation, and Arts - - - Development Services 106,700 - - Housing and Neighborhood Revitalization - - - Capital Projects - - - Assigned:
Capital Projects - - - Unassigned - (179,568) (375,893) Total Fund Balances (Deficits) 106,700 (179,568) (375,893) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 106,700 $ 451,365 $ 2,854,000 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(107)
Urban Sewer
Structure Mariposa Maintenance Proposition Proposition
Program Lily District 1B 42
ASSETS
Pooled Cash and Investments 2,107,180 $ 62,733 $ 3,554,508 $ 6,088 $ 46,543 $ Receivbles:
Accounts 26,928 - 43,145 - - Taxes - - 35,016 - - Accrued Interest - - - 25 - Due From Other Governments - - - - - Notes and Loans, Net - - - - - Prepaid Items - - - - - Land Held for Resale - - - - - Total Assets 2,134,108 $ 62,733 $ 3,632,669 $ 6,113 $ 46,543 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ - $ 50,522$ - $ - $ Accrued Liabilities - - 84,141 - - Unearned Revenues 24,275 - - - - Due to Other Funds - - - - - Total Liabilities 24,275 - 134,663 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - - - - Total Deferred Inflows of Resources - - - - -
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - - - Restricted:
Community Development Projects - - - - - Public Safety - - - - - Parks, Recreation, and Arts 2,061,031 - - - - Development Services 48,802 62,733 3,498,006 6,113 46,543 Housing and Neighborhood Revitalization - - - - - Capital Projects - - - - - Assigned:
Capital Projects - - - - - Unassigned - - - - - Total Fund Balances (Deficits) 2,109,833 62,733 3,498,006 6,113 46,543 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 2,134,108$ 62,733 $ 3,632,669 $ 6,113 $ 46,543 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(108)
Capital
Projects
Fund
Total
Lancaster Other
Lighting Capital Governmental
Measure R Measure M District Projects Funds
ASSETS
Pooled Cash and Investments 171,161 $ 2,099,672 $ 3,534,551 $ 7,950,998 $ 56,503,450 $ Receivbles:
Accounts 2,388,281 - 74,414 - 6,139,133 Taxes - - 53,390 - 522,891 Accrued Interest 1,429 4,926 - - 35,959 Due From Other Governments - - - - 4,435,868 Notes and Loans, Net - - - - 590,060 Prepaid Items - - - - 114,493 Land Held for Resale - - - - 224,766 Total Assets 2,560,871 $ 2,104,598 $ 3,662,355 $ 7,950,998 $ 68,566,620 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ - $ 404,652$ 5,667,767 $ 7,647,701 $ Accrued Liabilities - - 4,072 377,683 643,785 Unearned Revenues - - - - 2,795,575 Due to Other Funds 2,300,988 - - - 8,822,074 Total Liabilities 2,300,988 - 408,724 6,045,450 19,909,135
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - 151,461 - 3,291,981 Total Deferred Inflows of Resources - - 151,461 - 3,291,981
FUND BALANCES (DEFICITS)
Nonspendable:
Prepaid Items - - - - 114,493 Restricted:
Community Development Projects - - - - 2,644,249 Public Safety - - - - 117,568 Parks, Recreation, and Arts - - - - 2,946,552 Development Services 259,883 2,104,598 3,102,170 - $ 39,312,364 Housing and Neighborhood Revitalization - - - - 1,195,503 Capital Projects - - - - - Assigned:
Capital Projects - - - 1,905,548 1,905,548 Unassigned - - - - (2,870,773) Total Fund Balances (Deficits) 259,883 2,104,598 3,102,170 1,905,548 45,365,504 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 2,560,871$ 2,104,598 $ 3,662,355 $ 7,950,998 $ 68,566,620 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(109)
Landscape Housing and
Community Maintenance Community
Gas Tax Services District Development
REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - - - Intergovernmental 6,576,350 - - 1,755,630 Charges for Services 20 - 1,961,398 - Investment Earnings 31,860 - - - Fines and Forfeitures - - - - Contributions - - 8,757 - Miscellaneous 3,537 28,811 - - Total Revenues 6,611,767 28,811 1,970,155 1,755,630
EXPENDITURES
Current:
General Government - 17,685 - - Community Development - 6,750 - - Parks, Recreation, and Arts 738,621 - 1,767,552 - Development Services 6,445,176 - 40,533 - Housing and Neighborhood Revitalization - - - 861,163 Capital Outlay 1,564,526 - 8,682 571,453 Debt Service:
Principal Retirement - - - 182,000 Interest and Fiscal Charges - - - 19,879 Total Expenditures 8,748,323 24,435 1,816,767 1,634,495
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,136,556) 4,376 153,388 121,135
OTHER FINANCING SOURCES (USES)
Transfers In 6,194,478 - - - Transfers Out (3,316,716) (1,942) (512,974) (30,427) Total Other Financing Sources (Uses) 2,877,762 (1,942) (512,974) (30,427) NET CHANGE IN FUND BALANCES 741,206 2,434 (359,586) 90,708 Fund Balances (Deficits) - Beginning of Year 1,771,932 117,612 1,690,870 2,420,968 FUND BALANCES (DEFICITS) - END OF YEAR 2,513,138$ 120,046 $ 1,331,284 $ 2,511,676 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(110)
HOME Bikeway
Program Proposition A Improvement Proposition C
REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - - - Intergovernmental - 3,251,491 260,745 2,696,997 Charges for Services - - - - Investment Earnings - 18,214 474 29,802 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues - 3,269,705 261,219 2,726,799
EXPENDITURES
Current:
General Government - 2,189,561 - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services - - - - Housing and Neighborhood Revitalization 238,843 - - - Capital Outlay - 259,354 216,070 950,516 Debt Service:
Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 238,843 2,448,915 216,070 950,516
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (238,843) 820,790 45,149 1,776,283
OTHER FINANCING SOURCES (USES)
Transfers In 335 722 - - Transfers Out - (203,365) - - Total Other Financing Sources (Uses) 335 (202,643) - - NET CHANGE IN FUND BALANCES (238,508) 618,147 45,149 1,776,283 Fund Balances (Deficits) - Beginning of Year 1,434,011 2,829,473 (46,687) 3,641,896 FUND BALANCES (DEFICITS) - END OF YEAR 1,195,503$ 3,447,620 $ (1,538) $ 5,418,179$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(111)
Developer
Federal State Parks Fees -
Grants Grants Development Signals
REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits - - 368,000 596,363 Intergovernmental 4,069,204 5,803,507 - - Charges for Services - - - - Investment Earnings - (389) - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 4,069,204 5,803,118 368,000 596,363
EXPENDITURES
Current:
General Government - 193,343 - - Community Development - 28,015 - - Parks, Recreation, and Arts - - - - Development Services - 572,415 - - Housing and Neighborhood Revitalization - - - - Capital Outlay 1,677,083 1,714,488 91,947 47,968 Debt Service:
Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,677,083 2,508,261 91,947 47,968
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,392,121 3,294,857 276,053 548,395
OTHER FINANCING SOURCES (USES)
Transfers In 189,969 616,960 - - Transfers Out (261,285) (195,325) - - Total Other Financing Sources (Uses) (71,316) 421,635 - - NET CHANGE IN FUND BALANCES 2,320,805 3,716,492 276,053 548,395 Fund Balances (Deficits) - Beginning of Year (2,764,588) (5,547,231) 483,951 1,818,136 FUND BALANCES (DEFICITS) - END OF YEAR (443,783)$ (1,830,739) $ 760,004 $ 2,366,531 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(112)
Developer Biological Traffic
Fees - Recycled Impact Impact
Drainage Water Fees Fees
REVENUES
Taxes -$ - $ - $ - $ Licenses and Permits 7,646,451 - 42,112 812,589 Intergovernmental - - - - Charges for Services - 164,190 - - Investment Earnings - - - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 7,646,451 164,190 42,112 812,589
EXPENDITURES
Current:
General Government - - - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services - 157,007 - - Housing and Neighborhood Revitalization - - - - Capital Outlay 848,439 - - 285,387 Debt Service:
Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 848,439 157,007 - 285,387
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,798,012 7,183 42,112 527,202
OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - (4,578) - - Total Other Financing Sources (Uses) - (4,578) - - NET CHANGE IN FUND BALANCES 6,798,012 2,605 42,112 527,202 Fund Balances (Deficits) - Beginning of Year 4,186,232 122,912 597,949 892,416 FUND BALANCES (DEFICITS) - END OF YEAR 10,984,244$ 125,517 $ 640,061 $ 1,419,618 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(113)
Lancaster
Drainage
Maintenance Miscellaneous Traffic
AQMD District Grants Safety
REVENUES
Taxes -$ - $ 11,504$ - $ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - 1,995,867 - - Investment Earnings - - - - Fines and Forfeitures - - - 167,197 Contributions - - - - Miscellaneous - - - - Total Revenues - 1,995,867 11,504 167,197
EXPENDITURES
Current:
General Government - - - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services - 1,277,214 - - Housing and Neighborhood Revitalization - - - - Capital Outlay - 139,337 - - Debt Service:
Principal Retirement - 31,705 - - Interest and Fiscal Charges - 2,993 - - Total Expenditures - 1,451,249 - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 544,618 11,504 167,197
OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - (627,657) - - Total Other Financing Sources (Uses) - (627,657) - - NET CHANGE IN FUND BALANCES - (83,039) 11,504 167,197 Fund Balances (Deficits) - Beginning of Year (39,252) 2,153,673 1,023 (49,629) FUND BALANCES (DEFICITS) - END OF YEAR (39,252)$ 2,070,634 $ 12,527 $ 117,568 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(114)
Zero-Net
Energy Solar
Mitigation LA County
In Lieu Reimbursement MTA Grant
REVENUES
Taxes -$ - $ - $
Licenses and Permits - - - Intergovernmental - 386,801 806,795 Charges for Services - - - Investment Earnings - - - Fines and Forfeitures - - - Contributions - - - Miscellaneous - - - Total Revenues - 386,801 806,795
EXPENDITURES
Current:
General Government - - - Community Development - 455,477 - Parks, Recreation, and Arts - - - Development Services - - - Housing and Neighborhood Revitalization - - - Capital Outlay - - 745,903 Debt Service:
Principal Retirement - - - Interest and Fiscal Charges - - - Total Expenditures - 455,477 745,903
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (68,676) 60,892
OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - (1,035) Total Other Financing Sources (Uses) - - (1,035) NET CHANGE IN FUND BALANCES - (68,676) 59,857 Fund Balances (Deficits) - Beginning of Year 106,700 (110,892) (435,750) FUND BALANCES (DEFICITS) - END OF YEAR 106,700$ (179,568) $ (375,893) $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(115)
Urban Sewer
Structure Mariposa Maintenance Proposition Proposition
Program Lily District 1B 42
REVENUES
Taxes - $ - $ 4,409,705$ - $ - $ Licenses and Permits 1,187,988 - 174,804 - - Intergovernmental - - - - - Charges for Services - - - - - Investment Earnings - - - (1,108) - Fines and Forfeitures - - - - - Contributions - - - - - Miscellaneous - - - - - Total Revenues 1,187,988 - 4,584,509 (1,108) -
EXPENDITURES
Current:
General Government - - 2,117 - - Community Development - - - - - Parks, Recreation, and Arts - - - - - Development Services - - 2,718,374 - - Housing and Neighborhood Revitalization - - - - - Capital Outlay 190,859 - 333,631 136,746 591 Debt Service:
Principal Retirement - - - - - Interest and Fiscal Charges - - - - - Total Expenditures 190,859 - 3,054,122 136,746 591
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 997,129 - 1,530,387 (137,854) (591)
OTHER FINANCING SOURCES (USES)
Transfers In - - - - - Transfers Out (42,446) - (1,797,934) - - Total Other Financing Sources (Uses) (42,446) - (1,797,934) - - NET CHANGE IN FUND BALANCES 954,683 - (267,547) (137,854) (591) Fund Balances (Deficits) - Beginning of Year 1,155,150 62,733 3,765,553 143,967 47,134 FUND BALANCES (DEFICITS) - END OF YEAR 2,109,833$ 62,733 $ 3,498,006 $ 6,113 $ 46,543 $ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
(116)
Capital
Projects
Fund
Total
Lancaster Other
Lighting Capital Governmental
Measure R Measure M District Projects Funds
REVENUES
Taxes - $ - $ - $ - $ 4,421,209$ Licenses and Permits - - - - 10,828,307 Intergovernmental 7,276,859 2,295,022 - 1,349,082 36,528,483 Charges for Services - - 5,715,787 - 9,837,262 Investment Earnings 4,601 9,703 19 - 93,176 Fines and Forfeitures - - - - 167,197 Contributions - - - - 8,757 Miscellaneous - - 975 - 33,323 Total Revenues 7,281,460 2,304,725 5,716,781 1,349,082 61,917,714
EXPENDITURES
Current:
General Government - - - - 2,402,706 Community Development - - - - 490,242 Parks, Recreation, and Arts - - 84,940 - 2,591,113 Development Services 2,301 3,075 2,887,219 - 14,103,314 Housing and Neighborhood Revitalization - - - - 1,100,006 Capital Outlay 6,624,280 463,252 - - 16,870,512 Debt Service:
Principal Retirement - - 570,000 - 783,705 Interest and Fiscal Charges - - 405,606 - 428,478 Total Expenditures 6,626,581 466,327 3,947,765 - 38,770,076
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 654,879 1,838,398 1,769,016 1,349,082 23,147,638
OTHER FINANCING SOURCES (USES)
Transfers In 70,976 - - - 7,073,440 Transfers Out (1,110,765) (1,621,188) (331,681) - (10,059,318) Total Other Financing Sources (Uses) (1,039,789) (1,621,188) (331,681) - (2,985,878) NET CHANGE IN FUND BALANCES (384,910) 217,210 1,437,335 1,349,082 20,161,760 Fund Balances (Deficits) - Beginning of Year 644,793 1,887,388 1,664,835 556,466 25,203,744 FUND BALANCES (DEFICITS) - END OF YEAR 259,883$ 2,104,598 $ 3,102,170 $ 1,905,548 $ 45,365,504 $ Special Revenue Funds
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(117)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,771,932$ 1,771,932 $ 1,771,932 $ - $
RESOURCES (INFLOWS)
Intergovernmental 6,548,592 6,548,592 6,576,350 27,758 Charges for Services - - 20 20 Investment Earnings - - 31,860 31,860 Miscellaneous 209,000 209,000 3,537 (205,463) Transfers In 6,988,587 6,988,587 6,194,478 (794,109) Amounts Available for Appropriations 15,518,111 15,518,111 14,578,177 (939,934)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Parks, Recreation, and Arts 835,202 850,207 738,621 111,586 Development Services 6,470,335 7,235,016 6,445,176 789,840 Capital Outlay - - 1,564,526 (1,564,526) Transfers Out 5,121,445 6,512,875 3,316,716 3,196,159 Total Charges to Appropriations 12,426,982 14,598,098 12,065,039 2,533,059 BUDGETARY FUND BALANCE - END OF YEAR 3,091,129$ 920,013 $ 2,513,138 $ 1,593,125 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
LANDSACPE MAINTENANCE DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(118)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,690,870$ 1,690,870 $ 1,690,870 $ - $
RESOURCES (INFLOWS)
Charges for Services 1,707,000 1,707,000 1,961,398 254,398 Contributions 3,000 3,000 8,757 5,757 Amounts Available for Appropriations 3,400,870 3,400,870 3,661,025 260,155
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Parks, Recreation, and Arts 1,668,005 1,809,487 1,767,552 41,935 Development Services 48,570 59,473 40,533 18,940 Capital Outlay - - 8,682 (8,682) Transfers Out 1,527,442 1,977,442 512,974 1,464,468 Total Charges to Appropriations 3,244,017 3,846,402 2,329,741 1,516,661 BUDGETARY FUND BALANCE - END OF YEAR 156,853$ (445,532) $ 1,331,284 $ 1,776,816 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(119)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 2,420,968$ 2,420,968 $ 2,420,968 $ - $
RESOURCES (INFLOWS)
Intergovernmental 2,190,538 3,934,932 1,755,630 (2,179,302) Amounts Available for Appropriations 4,611,506 6,355,900 4,176,598 (2,179,302)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Housing and Neighborhood Revitalization 298,981 2,201,288 861,163 1,340,125 Capital Outlay - - 571,453 (571,453) Debt Service:
Principal Retirement 182,000 182,000 182,000 - Interest and Fiscal Charges 201,879 201,879 19,879 182,000 Transfers Out 817,588 1,955,195 30,427 1,924,768 Total Charges to Appropriations 1,500,448 4,540,362 1,664,922 2,875,440 BUDGETARY FUND BALANCE - END OF YEAR 3,111,058$ 1,815,538 $ 2,511,676 $ 696,138 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
HOME PROGRAM SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(120)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,434,011$ 1,434,011 $ 1,434,011 $ - $
RESOURCES (INFLOWS)
Transfers In - - 335 335 Amounts Available for Appropriations 1,434,011 1,434,011 1,434,346 335
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Housing and Neighborhood Revitalization - - 238,843 (238,843) Total Charges to Appropriations - - 238,843 (238,843) BUDGETARY FUND BALANCE - END OF YEAR 1,434,011$ 1,434,011 $ 1,195,503 $ (238,508) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PROPOSITION A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(121)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 2,829,473$ 2,829,473 $ 2,829,473 $ - $
RESOURCES (INFLOWS)
Intergovernmental 3,406,245 3,406,245 3,251,491 (154,754) Investment Earnings 14,040 14,040 18,214 4,174 Transfers In - - 722 722 Amounts Available for Appropriations 6,249,758 6,249,758 6,099,900 (149,858)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 1,655,382 1,674,648 2,189,561 (514,913) Parks, Recreation, and Arts - - - - Capital Outlay - - 259,354 (259,354) Transfers Out 2,108,951 3,442,413 203,365 3,239,048 Total Charges to Appropriations 3,764,333 5,117,061 2,652,280 2,464,781 BUDGETARY FUND BALANCE - END OF YEAR 2,485,425$ 1,132,697 $ 3,447,620 $ 2,314,923 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
BIKEWAY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(122)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (46,687)$ (46,687) $ (46,687) $ - $
RESOURCES (INFLOWS)
Intergovernmental 564,654 825,399 260,745 (564,654) Investment Earnings - - 474 474 Amounts Available for Appropriations 517,967 778,712 214,532 (564,180)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 216,070 (216,070) Transfers Out 353,695 524,212 - 524,212 Total Charges to Appropriations 353,695 524,212 216,070 308,142 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 164,272$ 254,500 $ (1,538) $ (256,038)$ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PROPOSITION C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(123)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 3,641,896$ 3,641,896 $ 3,641,896 $ - $
RESOURCES (INFLOWS)
Intergovernmental 2,825,390 2,825,390 2,696,997 (128,393) Investment Earnings 18,000 18,000 29,802 11,802 Amounts Available for Appropriations 6,485,286 6,485,286 6,368,695 (116,591)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 950,516 (950,516) Transfers Out 4,358,999 5,895,639 - 5,895,639 Total Charges to Appropriations 4,358,999 5,895,639 950,516 4,945,123 BUDGETARY FUND BALANCE - END OF YEAR 2,126,287$ 589,647 $ 5,418,179 $ 4,828,532 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
FEDERAL GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(124)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (2,764,588)$ (2,764,588) $ (2,764,588) $ - $
RESOURCES (INFLOWS)
Intergovernmental 9,692,980 19,561,605 4,069,204 (15,492,401) Transfers In - - 189,969 189,969 Amounts Available for Appropriations 6,928,392 16,797,017 1,494,585 (15,302,432)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 1,677,083 (1,677,083) Transfers Out 8,789,632 16,144,752 261,285 15,883,467 Total Charges to Appropriations 8,789,632 16,144,752 1,938,368 14,206,384 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (1,861,240)$ 652,265 $ (443,783) $ (1,096,048) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(125)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (5,547,231)$ (5,547,231) $ (5,547,231) $ - $
RESOURCES (INFLOWS)
Intergovernmental 1,187,198 10,239,990 5,803,507 (4,436,483) Investment Earnings - - (389) (389) Transfers In - - 616,960 616,960 Amounts Available for Appropriations (4,360,033) 4,692,759 872,847 (3,819,912)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government - 148,910 193,343 (44,433) Community Development 206,000 230,026 28,015 202,011 Development Services - 579,032 572,415 6,617 Capital Outlay - - 1,714,488 (1,714,488) Transfers Out 784,806 3,258,117 195,325 3,062,792 Total Charges to Appropriations 990,806 4,216,085 2,703,586 1,512,499 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (5,350,839)$ 476,674 $ (1,830,739) $ (2,307,413) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PARKS DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(126)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 483,951$ 483,951 $ 483,951 $ - $
RESOURCES (INFLOWS)
Licenses and Permits 100,000 100,000 368,000 268,000 Amounts Available for Appropriations 583,951 583,951 851,951 268,000
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 91,947 (91,947) Transfers Out - 100,236 - 100,236 Total Charges to Appropriations - 100,236 91,947 8,289 BUDGETARY FUND BALANCE - END OF YEAR 583,951$ 483,715 $ 760,004 $ 276,289 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
DEVELOPER FEES – SIGNALS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(127)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,818,136$ 1,818,136 $ 1,818,136 $ - $
RESOURCES (INFLOWS)
Licenses and Permits 160,000 160,000 596,363 436,363 Amounts Available for Appropriations 1,978,136 1,978,136 2,414,499 436,363
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 47,968 (47,968) Transfers Out 970,315 1,108,853 - 1,108,853 Total Charges to Appropriations 970,315 1,108,853 47,968 1,060,885 -
BUDGETARY FUND BALANCE - END OF YEAR 1,007,821$ 869,283 $ 2,366,531 $ 1,497,248 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
DEVELOPER FEES – DRAINAGE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(128)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 4,186,232$ 4,186,232 $ 4,186,232 $ - $
RESOURCES (INFLOWS)
Licenses and Permits 450,000 450,000 7,646,451 7,196,451 Amounts Available for Appropriations 4,636,232 4,636,232 11,832,683 7,196,451
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 848,439 (848,439) Transfers Out 777,000 2,700,694 - 2,700,694 Total Charges to Appropriations 777,000 2,700,694 848,439 1,852,255 BUDGETARY FUND BALANCE - END OF YEAR 3,859,232$ 1,935,538 $ 10,984,244 $ 9,048,706 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
RECYCLED WATER SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(129)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 122,912$ 122,912 $ 122,912 $ - $
RESOURCES (INFLOWS)
Charges for Services 100,000 100,000 164,190 64,190 Amounts Available for Appropriations 247,912 247,912 287,102 39,190
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services 178,772 322,690 157,007 165,683 Transfers Out 1,400 1,400 4,578 (3,178) Total Charges to Appropriations 180,172 324,090 161,585 162,505 BUDGETARY FUND BALANCE - END OF YEAR 67,740$ (76,178) $ 125,517 $ 201,695 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
BIOLOGICAL IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(130)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 597,949$ 597,949 $ 597,949 $ - $
RESOURCES (INFLOWS)
Licenses and Permits 175,000 175,000 42,112 (132,888) Amounts Available for Appropriations 772,949 772,949 640,061 (132,888) BUDGETARY FUND BALANCE - END OF YEAR 762,949$ 752,031 $ 640,061 $ (111,970) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
TRAFFIC IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(131)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 892,416$ 892,416 $ 892,416 $ - $
RESOURCES (INFLOWS)
Licenses and Permits 270,000 270,000 812,589 542,589 Amounts Available for Appropriations 1,162,416 1,162,416 1,705,005 542,589
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 285,387 (285,387) Transfers Out 862,620 1,013,255 - 1,013,255 Total Charges to Appropriations 862,620 1,013,255 285,387 727,868 BUDGETARY FUND BALANCE - END OF YEAR 299,796$ 149,161 $ 1,419,618 $ 1,270,457 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
AQMD SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(132)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR -$ - $ (39,252)$ - $ BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR -$ - $ (39,252)$ - $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
LANCASTER DRAINAGE MAINTENANCE DISTRICT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
(133)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 2,153,673$ 2,153,673 $ 2,153,673 $ - $
RESOURCES (INFLOWS)
Charges for Services 1,650,000 1,650,000 1,995,867 345,867 Amounts Available for Appropriations 3,803,673 3,803,673 4,149,540 345,867
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services 1,685,528 1,689,706 1,277,214 412,492 Capital Outlay - - 139,337 (139,337) Debt Service:
Principal Retirement - - 31,705 (31,705) Interest and Fiscal Charges - - 2,993 (2,993) Transfers Out 827,918 827,918 627,657 200,261 Total Charges to Appropriations 2,513,446 2,517,624 2,078,906 438,718 BUDGETARY FUND BALANCE - END OF YEAR 1,290,227$ 1,286,049 $ 2,070,634 $ 784,585 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(134)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,023$ 1,023 $ 1,023 $ - $
RESOURCES (INFLOWS)
Taxes 11,000 11,000 11,504 504 Amounts Available for Appropriations 12,023 12,023 12,527 504 BUDGETARY FUND BALANCE - END OF YEAR 1,023$ 1,023 $ 12,527 $ 11,504 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(135)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (49,629)$ (49,629) $ (49,629) $ - $
RESOURCES (INFLOWS)
Fines and Forfeitures 260,000 309,629 167,197 (142,432) Amounts Available for Appropriations 210,371 260,000 117,568 (142,432)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Transfers Out 260,000 260,000 - 260,000 Total Charges to Appropriations 260,000 260,000 - 260,000 BUDGETARY FUND BALANCE - END OF YEAR (49,629)$ - $ 117,568$ 117,568 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
LA COUNTY REIMBURSEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(136)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (110,892)$ (110,892) $ (110,892) $ - $
RESOURCES (INFLOWS)
Intergovernmental - 1,383,826 386,801 (997,025) Amounts Available for Appropriations (110,892) 1,272,934 275,909 (997,025)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development 600,000 1,272,934 455,477 817,457 Total Charges to Appropriations 600,000 1,272,934 455,477 817,457 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (710,892)$ - $ (179,568)$ (179,568) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MTA GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(137)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR (435,750)$ (435,750) $ (435,750) $ - $
RESOURCES (INFLOWS)
Intergovernmental 95,576 2,098,579 806,795 (1,291,784) Amounts Available for Appropriations (340,174) 1,662,829 371,045 (1,291,784)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 745,903 (745,903) Transfers Out 95,576 1,662,829 1,035 1,661,794 Total Charges to Appropriations 95,576 1,662,829 746,938 915,891 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR (435,750)$ - $ (375,893)$ (375,893) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
URBAN STRUCTURE PROGRAM SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(138)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,155,150$ 1,155,150 $ 1,155,150 $ - $
RESOURCES (INFLOWS)
Licenses and Permits 277,000 277,000 1,187,988 910,988 Amounts Available for Appropriations 1,432,150 1,432,150 2,343,138 910,988
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 190,859 (190,859) Transfers Out 291,681 546,777 42,446 504,331 Total Charges to Appropriations 291,681 546,777 233,305 313,472 BUDGETARY FUND BALANCE - END OF YEAR 1,140,469$ 885,373 $ 2,109,833 $ 1,224,460 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
SEWER MAINTENANCE DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(139)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 3,765,553$ 3,765,553 $ 3,765,553 $ - $
RESOURCES (INFLOWS)
Taxes 4,100,000 4,100,000 4,409,705 309,705 Licenses and Permits 123,300 123,300 174,804 51,504 Amounts Available for Appropriations 7,988,853 7,988,853 8,350,062 361,209
CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 2,200 - 2,117 (2,117) Development Services 3,260,852 3,317,206 2,718,374 598,832 Capital Outlay - - 333,631 (333,631) Transfers Out 1,644,170 2,144,566 1,797,934 346,632 Total Charges to Appropriations 4,907,222 5,461,772 4,852,056 609,716 BUDGETARY FUND BALANCE - END OF YEAR 3,081,631$ 2,527,081 $ 3,498,006 $ 970,925 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PROPOSITION 1B SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(140)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 143,967$ 143,967 $ 143,967 $ - $
RESOURCES (INFLOWS)
Investment Earnings - - (1,108) (1,108) Amounts Available for Appropriations 143,967 143,967 142,859 (1,108)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 136,746 (136,746) Transfers Out - 137,141 - 137,141 Total Charges to Appropriations - 137,141 136,746 395 BUDGETARY FUND BALANCE - END OF YEAR 143,967$ 6,826 $ 6,113 $ (713) $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
PROPOSITION 42 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(141)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 47,134$ 47,134 $ 47,134 $ - $
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Capital Outlay - - 591 (591) Transfers Out - 45,746 - 45,746 Total Charges to Appropriations - 45,746 591 45,155 BUDGETARY FUND BALANCE - END OF YEAR 47,134$ 1,388 $ 46,543 $ 45,155 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(142)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 644,793$ 644,793 $ 644,793 $ - $
RESOURCES (INFLOWS)
Intergovernmental 22,775,674 26,327,461 7,276,859 (19,050,602) Investment Earnings 20,500 20,500 4,601 (15,899) Transfers In - - 70,976 70,976 Amounts Available for Appropriations 23,440,967 26,992,754 7,997,229 (18,995,525)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 2,301 (2,301) Capital Outlay - - 6,624,280 (6,624,280) Transfers Out 23,223,489 26,958,695 1,110,765 25,847,930 Total Charges to Appropriations 23,223,489 26,958,695 7,737,346 19,221,349 BUDGETARY FUND BALANCE - END OF YEAR 217,478$ 34,059 $ 259,883 $ 225,824 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(143)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,887,388$ 1,887,388 $ 1,887,388 $ - $
RESOURCES (INFLOWS)
Intergovernmental 3,642,068 3,642,068 2,295,022 (1,347,046) Investment Earnings 10,000 10,000 9,703 (297) Amounts Available for Appropriations 5,539,456 5,539,456 4,192,113 (1,347,343)
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Development Services - - 3,075 (3,075) Capital Outlay 200,000 343,048 463,252 (120,204) Transfers Out 2,876,686 4,123,979 1,621,188 2,502,791 Total Charges to Appropriations 3,076,686 4,467,027 2,087,515 2,379,512 BUDGETARY FUND BALANCE - END OF YEAR 2,462,770$ 1,072,429 $ 2,104,598 $ 1,032,169 $ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
LANCASTER LIGHTING DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(144)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,664,835$ 1,664,835 $ 1,664,835 $ - $
RESOURCES (INFLOWS)
Charges for Services 4,465,000 4,465,000 5,715,787 1,250,787 Investment Earnings - - 19 19 Miscellaneous - - 975 975 Amounts Available for Appropriations 6,144,835 6,144,835 7,381,616 1,236,781
CHARGES TO APPROPRIATIONS (OUTFLOWS)
Parks, Recreation, and Arts 85,000 85,000 84,940 60 Development Services 2,678,734 2,591,599 2,887,219 (295,620) Principal Retirement 570,000 570,000 570,000 - Interest and Fiscal Charges 976,755 976,755 405,606 571,149 Transfers Out 322,057 322,057 331,681 9,624 Total Charges to Appropriations 4,632,546 4,545,411 4,279,446 285,213 BUDGETARY FUND BALANCE - END OF YEAR 1,512,289$ 1,599,424 $ 3,102,170 $ 1,521,994 $ Budgeted Amounts
CITY OF LANCASTER
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30, 2021
(145)
Assessment
District Deposits AD 92-101
ASSETS
Pooled Cash and Investments 154,596 $ 9,716 $ 202 $ Receivable:
Accounts - 12,351 -
Taxes - 2,989 -
Restricted:
Cash and Investments with Fiscal Agents - - - Total Assets 154,596 25,056 202
LIABILITIES
Deposits Payable - 25,056 - Total Liabilities - 25,056 -
NET POSITION
Restricted for Bondholders 154,596 - 202 Total Net Position 154,596 $ - $ 202 $
CITY OF LANCASTER
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS (CONTINUED)
JUNE 30, 2021
(146)
CFD 89-1 CFD 90-1 CFD 91-1 Total
ASSETS
Pooled Cash and Investments 23,917 $ 619 $ 542 $ 189,592$ Receivable:
Accounts - - - 12,351 Taxes - - - 2,989 Restricted:
Cash and Investments with Fiscal Agents 2,185 - - 2,185 Total Assets 26,102 619 542 207,117
LIABILITIES
Deposits Payable - - - 25,056 Total Liabilities - - - 25,056
NET POSITION
Restricted for Bondholders 26,102 619 542 182,061 Total Net Position 26,102 $ 619 $ 542 $ 207,117$
CITY OF LANCASTER
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
(147)
Assessment
District Deposits AD 92-101
ADDITIONS
Special Assessments or Taxes Collected From Property Owners - $ - $ - $ Investment Earnings - -
Total Additions - - -
DEDUCTIONS
Administrative Expenses - -
Payment of Special Tax Debt - - - Total Deductions - - -
CHANGE IN NET POSITION - - - TOTAL NET POSITION, BEGINNING OF YEAR, AS RESTATED 154,596 - 202 TOTAL NET POSITION, END OF YEAR 154,596 $ - $ 202 $
CITY OF LANCASTER
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
(148)
CFD 89-1 CFD 90-1 CFD 91-1 Total
ADDITIONS
Special Assessments or Taxes Collected From Property Owners 525,917 $ (40) $ - $ 525,877$ Investment Earnings - - - Total Additions 525,917 (40) - 525,877
DEDUCTIONS
Administrative Expenses 1,575 - - 1,575 Payment of Special Tax Debt 735,116 - - 735,116 Total Deductions 736,691 - - 736,691 CHANGE IN NET POSITION (210,774) (40) - (210,814) TOTAL NET POSITION, BEGINNING OF YEAR, AS RESTATED 236,876 659 542 392,875 TOTAL NET POSITION, END OF YEAR 26,102 $ 619 $ 542 $ 182,061$
(149)
STATISTICAL SECTION
CITY OF LANCASTER
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2021
(150)
ST
ATISTICAL SECTION
This part of the City of Lancaster’s comprehensive annual financial report presents detailed information as a context for under standing what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
Contents Page
Financial Trends 151-156
These sche
dules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
Revenue Capacity 157-161
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property and sales taxes.
Debt Capacity 162-166
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information 167-168
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.
Operating Information 169-170
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s fina ncial information relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented Statement 34 for the fiscal year ended June 30, 2003; schedules presenting government-wide information include information beginning in that year.
CITY OF LANCASTER
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(151)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities
Net Investment in
Capital Assets 924,786,002 $ 937,437,269 $ 923,425,649 $ 907,594,209 $ 893,340,891 $ 868,784,058 $ 858,554,529 $ 850,994,405 $ 852,525,238 $ 845,575,930 $ Restricted 172,781,575 161,081,541 154,576,976 156,831,806 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 Unrestricted 23,048,243 5,094,946 30,520,092 (10,727,418) 3,063,526 (1,347,011) (6,020,947) (13,964,865) (80,694,919) 16,690,582 Total Governmental
Activities Net Assets 1,120,615,820$ 1,103,613,756 $ 1,108,522,717 $ 1,053,698,597 $ 1,044,902,898 $ 1,014,069,921 $ 995,991,467 $ 990,603,948 $ 983,489,489 $ 1,003,796,665 $ Business-type activities
Net Investment in
Capital Assets - $ - $ (4,221,367)$ (1,317,420) $ (1,175,345) $ (998,271) $ (1,551,196) $ (2,054,121) $ (2,507,045) $ (2,899,971) $ Unrestricted (252,698) (1,397,269) 2,469,059 (1,234,241) 1,748,081 3,317,256 4,911,084 4,781,147 9,780,734 8,662,408 Total Business-Type
Activities Net Assets (252,698)$ (1,397,269) $ (1,752,308) $ (2,551,661) $ 572,736 $ 2,318,985 $ 3,359,888 $ 2,727,026 $ 7,273,689 $ 5,762,437 $ Primary Government
Net Investment in
Capital Assets 924,786,002 $ 937,437,269 $ 919,204,282 $ 906,276,789 $ 892,165,546 $ 867,785,787 $ 857,003,333 $ 848,940,284 $ 850,018,193 $ 842,675,959 $ Restricted 172,781,575 161,081,541 154,576,976 156,831,806 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 Unrestricted 22,795,545 3,697,677 32,989,151 (11,961,659) 4,811,607 1,970,245 (1,109,863) (9,183,718) (70,914,185) 25,352,990 Total Primary Government
Net Assets 1,120,363,122 $ 1,102,216,487 $ 1,106,770,409 $ 1,051,146,936 $ 1,045,475,634 $ 1,016,388,906 $ 999,351,355 $ 993,330,974 $ 990,763,178 $ 1,009,559,102 $ *2017 Net Assets Restated
Fiscal Year
CITY OF LANCASTER
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(152)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities:
General Government 24,809,328 $ 20,108,707 $ 20,826,798 $ 18,151,158 $ 24,202,118 $ 8,960,666 $ 25,403,881 $ 36,559,231 $ 34,227,243 $ 35,691,615 $ Public Safety 23,493,486 25,618,865 24,042,237 26,777,341 26,305,165 28,407,266 29,600,738 30,472,647 31,515,319 32,230,935 Community Development 12,796,592 6,554,237 4,382,821 3,205,562 3,075,464 3,153,141 3,596,731 3,203,719 657,480 592,696 Parks, Recreation, and Arts 52,220,277 13,049,889 13,555,843 14,096,265 16,934,244 16,693,089 18,330,765 19,055,172 18,323,761 17,820,781 Development Services 1,722,135 53,654,875 54,078,702 54,734,695 50,457,653 69,971,677 54,409,902 53,929,613 53,960,990 50,239,507 Housing and Neighborhood
Revitalization 10,355,215 421,279 3,072,338 4,341,667 2,672,073 2,561,473 2,158,452 2,115,890 1,850,333 2,056,358 Interest on Long-Term Debt 2,316,858 375,667 233,915 180,567 217,001 273,270 793,067 920,559 2,315,735 3,119,743 Total Primary Governmental
Activities Expenses 127,713,891 119,783,519 120,192,654 121,487,255 123,863,718 130,020,582 134,293,536 146,256,831 142,850,861 141,751,635 Business-type activities:
Lancaster Power Authority 1,138,830 2,990,770 3,215,141 2,170,134 2,166,532 2,039,939 1,987,221 1,968,698 1,841,253 1,825,146 Lancaster Choice Energy - - - 1,430,990 20,238,595 33,808,624 34,290,014 36,835,001 39,741,272 47,013,871 California Choice Energy Authority - - - - - 52,276 2,414,623 4,287,401 5,650,866 6,033,722 Total Business-Type
Activities Expenses 1,138,830 2,990,770 3,215,141 3,601,124 22,405,127 35,900,839 38,691,858 43,091,100 47,233,391 54,872,739 Total Primary Government Expenses 128,852,721 122,774,289 123,407,795 125,088,379 146,268,845 165,921,421 172,985,394 189,347,931 190,084,252 196,624,374 Program Revenues (see Schedule 3)
Governmental Activities:
Charges for Services:
General Government 935,460 284,461 198,193 432,988 513,200 639,962 602,044 619,995 139,214 3,335,332 Public Safety 1,935,658 1,070,125 978,834 818,277 751,611 984,026 1,062,896 1,085,753 853,945 2,525,888 Community Development 3,156,519 428,817 568,214 550,551 496,533 661,602 634,154 639,536 597,666 430,021 Parks, Recreation and Arts 21,175,600 3,560,430 3,683,705 3,652,517 4,277,377 4,550,335 4,321,483 4,715,881 2,657,974 759,537 Development Services 1,306,309 13,352,265 13,285,244 14,021,480 14,565,036 15,011,307 15,313,752 15,847,319 16,463,307 18,297,602 Housing and Neighborhood
Revitalization 283,252 908,953 1,009,550 303,541 226,958 229,371 365,977 237,247 1,042,728 290,464 Operating Grants and Contributions 22,221,889 27,016,113 22,338,733 22,198,805 24,493,308 24,106,817 27,378,164 26,646,632 32,101,550 48,818,504 Capital Grants and Contributions 6,133,131 10,893,821 13,157,118 20,173,224 7,918,787 2,949,315 8,166,904 18,407,817 13,207,647 14,693,720 Total Governmental Activities
Program Revenues 57,147,818 57,514,985 55,219,591 62,151,383 53,242,810 49,132,735 57,845,374 68,200,180 67,064,031 89,151,068 Fiscal Year
CITY OF LANCASTER
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Business-type activities:
Charges for Services:
Lancaster Power Authority 1,479,116 $ 2,937,736 $ 3,402,736 $ 3,273,181 $ 3,512,716 $ 2,818,772 $ 1,861,482 $ 1,661,277 $ 1,545,531 $ 1,896,121 $ Lancaster Choice Energy - - - 275,128 23,437,682 36,023,817 37,454,517 37,059,153 43,397,265 43,786,322 California Choice Energy Authority - - - - - 80,000 1,495,702 4,535,102 5,438,167 5,987,488 Total Business-Type Activities
Program Revenues 1,479,116 2,937,736 3,402,736 3,548,309 26,950,398 38,922,589 40,811,701 43,255,532 50,380,963 51,669,931 Total Primary Government
Program Revenues 58,626,934 60,452,721 58,622,327 65,699,692 80,193,208 88,055,324 98,657,075 111,455,712 117,444,994 140,820,999 Governmental Activities (70,566,073) (62,374,602) (64,838,504) (59,335,872) (70,620,908) (80,887,847) (76,448,162) (78,056,651) (75,786,830) (52,600,567) Business-Type Activities: 340,286 53,034 53,036 (52,815) 4,545,271 3,021,750 2,119,843 164,432 3,147,572 (3,202,808) Net Primary Government
Revenue (Expense) (70,225,787) (62,321,568) (64,785,468) (59,388,687) (66,075,637) (77,866,097) (74,328,319) (77,892,219) (72,639,258) (55,803,375) Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes 25,370,913 14,142,727 14,370,865 16,854,719 19,252,156 19,468,926 20,423,770 22,583,607 24,296,937 26,148,244 Transient Occupancy Taxes 1,338,016 1,314,747 1,313,033 1,614,404 1,866,299 2,064,522 2,202,452 2,211,230 1,965,102 7,731,919 Intergovernmental -State
Shared Sales Taxes 17,259,589 16,254,549 18,043,706 18,540,150 19,498,624 20,462,687 20,483,067 23,611,132 21,961,474 2,012,943 Franchise Taxes 2,655,535 2,617,877 2,669,286 2,776,634 2,821,855 2,926,257 4,706,453 7,637,948 7,663,335 1,223,982 Business Llicenses Taxes 955,466 906,896 929,618 983,968 915,740 842,598 932,469 920,998 722,837 1,315,822 Other Taxes 284,519 406,441 413,913 419,034 428,651 630,705 991,873 885,093 1,279,397 118,596 Intergovernmental 78,065 80,905 67,299 65,519 64,874 70,376 83,074 77,514 127,902 31,805,221 Investment Earnings 2,102,259 38,131 252,605 331,645 532,869 465,226 243,124 1,942,204 4,696,743 1,391,387 Miscellaneous 3,913,577 1,008,418 331,511 1,141,731 1,041,187 2,308,190 3,393,939 10,536,241 4,138,146 1,546,901 Gain on Sale of Land Held
for Resale 5,078,193 109,072 4,160,149 2,129,772 1,158,860 443,926 1,283,807 1,220,392 888,441 513,340 Transfers 600,000 600,000 600,000 800,000 1,600,000 1,358,064 1,525,000 845,513 893,410 875,850 Total Governmental Activities 59,636,132 37,479,763 43,151,985 45,657,576 49,181,115 51,041,477 56,269,028 72,471,872 68,633,724 74,684,205 Business-Type Activities:
Investment Earnings 7,016 2,421 9,533 1,762 6,041 10,109 25,250 48,219 34,247 860 Miscellaneous - 42,750 47,833 51,700 173,085 72,454 420,810 2,258,254 2,790,669 Transfers (600,000) (600,000) (600,000) (800,000) (1,600,000) (1,358,064) (1,525,000) (845,513) (893,410) (875,850) Total Business-Type Activities (592,984) (554,829) (542,634) (746,538) (1,420,874) (1,275,501) (1,078,940) (797,294) 1,399,091 1,915,679 Fiscal Year
CITY OF LANCASTER
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Extraordinary Gain/(Loss) 236,809,943 $ (14,482,945) $ 41,469,430 $ - $ 11,789,312$ - $ - $ - $ - $ - $ Total Primary Government
Revenues, Contributions,
Extraordinary Items and Transfers 295,853,091 22,441,989 84,078,781 44,911,038 59,549,553 49,765,976 55,190,088 71,674,578 70,032,815 76,599,884 Extraordinary Gain/Lloss) due
to Transfer of Assets
to Successor Agency (Note 16) - (14,482,945) 41,469,430 - - - - - - - Change in Net Assets
Governmental Activities 225,880,002 (39,271,716) 19,648,352 (13,678,296) (9,650,481) (29,846,370) (20,179,134) (5,584,779) (7,153,106) 22,083,638 Business-Type Activities (252,698) (607,863) (355,039) (799,353) 3,124,397 1,746,249 1,040,903 (632,862) 4,546,663 (1,287,129) Total Primary Government 225,627,304 $ (39,879,579) $ 19,293,313 $ (14,477,649) $ (6,526,084) $ (28,100,121) $ (19,138,231) $ (6,217,641) $ (2,606,443) $ 20,796,509 $ Fiscal Year
CITY OF LANCASTER
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(155)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable 22,319,854 $ 8,852,742 $ 28,221,235 $ 30,146,378 $ 35,269,352 $ 35,371,160 $ 34,813,055 $ 29,262,811 $ 29,674,751 $ 26,457,074 $ Committed - - - - - - - 3,365,000 1,614,733 8,083,847 Assigned 4,889,386 4,800,218 4,680,626 4,928,059 5,271,564 16,385,000 21,342,040 23,159,000 9,055,493 14,132,994 Unassigned 11,700,986 12,927,615 8,742,053 7,363,284 14,512,289 3,799,199 27,264 7,120,806 24,936,990 37,531,649 Total General Fund 38,910,226 $ 26,580,575 $ 41,643,914 $ 42,437,721 $ 55,053,205 $ 55,555,359 $ 56,182,359 $ 62,907,617 $ 65,281,967 $ 86,205,564 $ All Other Governmental Funds
Nonspendable 94,373,593 $ 87,303,062 $ - $ 47,639$ 138,887 $ 302,869 $ - $ 1,952 $ - $ 114,493$ Restricted 60,392,063 56,185,252 151,441,914 153,298,355 143,175,424 138,738,574 135,604,095 145,720,618 194,765,788 186,902,404 Assigned 509 509 509 17,055 - 60,647.00 60,647 60,647 556,466 1,905,548 Unassigned (4,902,734) (5,397,190) (2,637,423) (2,503,461) (2,239,594) (4,009,386) (5,552,234) (4,758,232) (12,709,657) (4,213,959) Total all Other Governmental Funds 149,863,431$ 138,091,633 $ 148,805,000 $ 150,859,588 $ 141,074,717 $ 135,092,704 $ 130,112,508 $ 141,024,985 $ 182,612,597 $ 184,708,486 $ Explanation of fund balance categories and descriptions can be found in Note 1 - Summary of Significant Accounting Policies; di fferences in fund balances betweem FY 19/20 & 20/21 are discussed in Management Discussion and Analysis section.
Fiscal Year
CITY OF LANCASTER
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(156)
2012 2013 2014 2015 2016 2017 2018 2020 2021
Revenues
Taxes 48,495,344 $ 49,816,195 $ 43,142,049 $ 45,955,569 $ 50,788,011 $ 51,225,214 $ 32,694,321 $ 39,776,377 $ 46,881,898 $ Licenses, Fees, and Permits 10,644,481 4,758,487 3,765,131 4,213,219 7,618,177 7,154,796 7,311,998 6,145,835 18,160,703 Intergovernmental 23,563,011 20,477,373 25,441,406 29,814,201 20,399,991 20,131,473 49,677,753 56,422,007 84,585,107 Charges for Services 10,166,791 10,773,394 11,055,161 11,579,958 11,943,261 12,047,968 12,110,502 11,656,942 10,631,985 Investment Earnings 3,491,243 2,515,570 5,988,730 3,027,639 1,315,125 865,832 1,011,369 2,913,406 538,028 Fines and Forfeitures 1,935,658 1,253,922 1,164,109 1,031,987 958,579 1,076,830 1,248,494 996,310 702,937 Contributions - - - - - 630 35,586 2,669 8,757 Rental Income - - - 5,748 194,687 155,750 155,750 128,893 - Gain From Sale of Land Held - - - - - - - 30,303 472,883 Miscellaneous 8,697,718 4,693,687 1,108,353 2,167,266 2,365,424 5,320,963 6,340,721 6,331,271 7,193,270 Total Revenues 106,994,246 $ 94,288,628 $ 91,664,939 $ 97,795,587 $ 95,583,255 $ 97,979,456 $ 110,586,494 $ 124,404,013 $ 169,175,568 $ Expenditures
General Government 19,429,696 $ 16,729,037 $ 13,998,033 $ 15,994,460 $ 20,261,382 $ 19,648,188 $ 21,765,331 $ 28,610,023 $ 31,230,218 $ Public Safety 23,456,553 25,349,866 24,238,229 25,019,344 26,299,308 28,401,068 29,429,466 31,325,203 32,319,382 Community Development 11,423,703 7,171,105 4,021,302 2,732,422 2,796,072 2,879,556 3,352,591 236,826 490,242 Parks, Recreation and Arts 16,530,854 11,639,064 12,324,636 12,819,404 15,218,338 16,157,838 16,769,802 17,042,667 15,392,513 Development Services 1,722,135 18,383,201 17,639,737 19,678,403 18,634,314 34,626,426 20,337,475 20,176,895 21,898,694 Housing and Neighborhood Revitalization 10,207,101 452,079 5,063,159 4,341,667 2,672,073 3,564,603 2,158,452 1,850,333 2,056,358 Capital Outlay 22,019,463 17,762,739 11,121,837 14,852,578 17,109,139 13,067,378 22,380,893 32,485,154 30,875,418 Debt Service
Principal 4,832,000 6,556,995 528,151 549,758 607,293 771,403 1,774,883 3,397,596 3,055,692 Interest 7,195,509 463,046 244,583 221,672 185,367 293,259 660,933 2,413,747 3,525,805 Total Expenditures 116,817,014 104,507,132 89,179,667 96,209,708 103,783,286 119,409,719 118,629,826 137,538,444 140,844,322 Excess of Revenues Over (Under)
Expenditures (9,822,768) (10,218,504) 2,485,272 1,585,879 (8,200,031) (21,430,263) (8,043,332) (13,134,431) 28,331,246 Other Financing Sources (Uses)
Sale of Capital Assets - - - - - - - 526,178 40,457 Bonds, notes, and Loans Iissued - - - - - 14,250,000 - 48,405,000 - Bonds Issuance Premium - - - - - 529,230 - 7,268,805 - Sale of Capital Assets
Gain/(Loss) on Sale of Land 5,078,193 - - - - 90,300 Proceeds from Capital Lease - - - - 255,981 555,221 - Transfers in 49,040,910 24,370,408 23,056,901 24,675,475 31,209,370 22,640,266 36,663,811 50,727,058 19,492,130 Transfers out (48,440,910) (23,770,408) (22,456,901) (23,875,475) (29,609,370) (21,282,202) (35,138,811) (49,833,648) (18,616,280) Total Other Financing
Sources (Uses) 5,678,193 600,000 600,000 800,000 1,855,981 16,692,515 1,615,300 57,093,393 916,307 Extraordinary, Special Gain/(Loss) 32,325,866 (14,842,945) 22,836,799 - 9,174,663 - - - - Net Change in
Fund Balances 28,181,291 $ (24,461,449) $ 25,922,071 $ 2,385,879 $ 2,830,613 $ (4,737,748) $ (6,428,032) $ 43,958,962 $ 29,247,553 $ Debt service as a percentage
of noncapital expenditures 12.69% 8.09% 0.99% 0.95% 0.91% 1.00% 2.53% 5.53% 5.98% 2018 & beyond - Sales Taxes moved from Taxes category to Intergovernmental category.
Fiscal Year
CITY OF LANCASTER
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(157)
Intergovernmental
Fiscal *Property Transient State Shared Franchise Business Other Year Taxes Occupancy Sales Taxes Measure LC Taxes Licenses Taxes Taxes Total 2012 25,370,913$ 1,338,016 $ 16,435,979 $ 2,655,535 $ 1,001,935 $ 304,942 $ 47,107,320$ 2013 14,142,727 1,314,747 16,254,549 2,617,877 906,896 406,441 35,643,237 2014 14,370,865 1,313,033 18,043,706 2,669,286 929,618 413,913 37,740,421 2015 16,854,719 1,614,404 18,540,150 2,776,634 983,968 419,034 41,188,909 2016 19,252,156 1,866,299 19,498,624 15,982,000 $ 3,516,624 $ 2,821,855 915,740 428,651 64,281,949 2017 19,468,926 2,064,522 20,462,687 20,097,483 365,204 2,926,257 842,598 630,705 66,858,382 2018 20,423,770 2,202,452 20,483,067 20,653,375 (170,308) 4,706,453 932,469 991,873 70,223,151 2019 22,583,607 2,211,230 23,611,132 22,980,662 630,470 7,637,948 920,998 885,093 81,461,140 2020 24,296,937 1,965,102 21,961,474 22,535,050 (573,576) 7,663,335 722,837 1,279,397 79,850,556 2021 26,148,244 2,012,943 26,734,737 - 26,734,737 5,070,608 $ 7,731,919 729,798 1,010,653 96,173,638
7.62% 2.43% 21.73% -100.00% -4761.06% 0.89% 0.96% -21.01% 20.44% Change (1,851,306) (47,842) (4,773,263) 22,535,050 (27,308,313) (5,070,608) (68,583) (6,961) 268,744 (16,323,082) -27.2% 54.8% 71.3% #DIV/0! #DIV/0! 186.7% -27.7% 225.6% 69.3% *Since 2013 Property Taxes have been substantially less due to dissolution of Lancaster Redevelopment Agency Source: City of Lancaster Finance Department
2012-2021
CITY OF LANCASTER
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(IN THOUSANDS)
(158)
Less: Total Taxable Total
Fiscal Residential Commercial Industrial Other Unsecured Tax-Exempt Assessed Direct Tax Year Property* Property* Property* Property* Property* Property Value Rate* 2011-12 5,881,635$ 1,099,774 $ 410,978 $ 1,108,713 $ 316,057 $ (457,271) $ 8,359,886 $ 0.669320 2012-13 5,775,643 1,109,273 417,524 1,093,610 309,749 (447,236) 8,258,563 0.629500 2013-14 6,028,269 1,142,422 421,089 1,086,064 290,049 (491,828) 8,476,065 0.094360 2014-15 6,875,938 1,151,791 429,440 1,105,203 278,624 (501,969) 9,339,027 0.092970 2015-16 7,366,323 1,272,042 431,603 1,137,342 291,158 (513,024) 9,985,444 0.091940 2016-17 7,772,454 1,293,080 439,480 1,175,301 309,909 (429,860) 10,560,364 0.091220 2017-18 8,248,993 1,331,678 455,985 1,213,136 283,133 (487,736) 11,045,188 0.090230 2018-19 8,849,447 1,396,589 514,693 1,219,625 280,558 (461,721) 11,799,191 0.089460 2019-20 9,457,797 1,444,154 550,237 1,332,867 360,368 (428,683) 12,716,740 0.088530 2020-21 9,778,254 1,426,788 576,248 1,773,175 407,473 (638,594) 13,323,344 0.085786 *Total Direct Rate is the weighted average of all individual di rect rates applied by the City and excludes revenues derived fro m aircraft. Beginning in 2013/14 Source: Los Angeles County Assessor data, Hdl, Coren & Cone the Total Direct Rate no longer includes revenue generat ed from the former redevelopment tax rate areas.
CITY OF LANCASTER
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(159)
Los Antelope Valley Total City's Share
Fiscal Angeles Union High Elementary Community Direct & of 1% Levy Total Year General County School District Sc hool Districts College Water Overl apping(1) Per Prop 13(2) Direct(3) 2012 1.00000% 0.00000% 0.02913% 0.16285% 0.02599% 0.07049% 1.28846% 0.06611% 0.669320 2013 1.00000% 0.00000% 0.03075% 0.17208% 0.02949% 0.07049% 1.30281% 0.06611% 0.629500 2014 1.00000% 0.00000% 0.02602% 0.19795% 0.02741% 0.07049% 1.32186% 0.06611% 0.094360 2015 1.00000% 0.00000% 0.02585% 0.21896% 0.02480% 0.07049% 1.34010% 0.06611% 0.092970 2016 1.00000% 0.00000% 0.02428% 0.21732% 0.02556% 0.07049% 1.33765% 0.06611% 0.091940 2017 1.00000% 0.00000% 0.02474% 0.21889% 0.02560% 0.07049% 1.33972% 0.06611% 0.091220 2018 1.00000% 0.00000% 0.02357% 0.21331% 0.04869% 0.07049% 1.35606% 0.06611% 0.090230 2019 1.00000% 0.00000% 0.02317% 0.20772% 0.04847% 0.07049% 1.34985% 0.06611% 0.089460 2020 1.00000% 0.00000% 0.02187% 0.20734% 0.04722% 0.07049% 1.34692% 0.06611% 0.088530 2021 1.00000% 0.00000% 0.02163% 0.06540% 0.42466% 0.07049% 1.58218% 0.06611% 0.085786 Source: Los Angeles County Auditor 2011/12‐2020/21 Tax Rate Table, HdL Coren & Cone (1) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. (2) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The City's ERAF portion of the City's Levy has been subtracted where known. (3)Total Direct Rate is the weighted average of all individual direct rates applied by the City and excludes revenues derived from aircraft. Beginning in 2013/14, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
CITY OF LANCASTER
PRINCIPAL PROPERTY TAX PAYERS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(160)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed A ssessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
Rami Darghalli Trust 67,831,253 $ 1 0.51% Basrock 92,006,137 $ 1 1.10% Walmart Stores INC 62,245,360 2 0.47% Walmart 50,894,858 2 0.61% BRE MG Granada Villias LLC 54, 924,012 3 0.41% Avenue K Lancaster UCM Cadenc 46,879,846 3 0.56% TA High Desert LLC 54,835,443 4 0.41% US Industrial Reit II 45,284,000 4 0.54% BRE MG Cordova Park LLC 52,178,736 5 0.39% Thrifty Payless Inc 34,439,192 5 0.41% Thrifty Payless Inc. 49,224,466 6 0.37% Bank of America 31,158,315 6 0.37% BYD Coach and Bus LLC 49,034,258 7 0.37% Federal National Mortgage Assoc 27,313,138 7 0.33% AG Sunset Ridge Owner LP 47,210,000 8 0.35% MGP IX Reit LLC 27,150,000 8 0.32% Vereit Real Estate LP 46,974,059 9 0.35% Sygma Network Inc 25,586,895 9 0.31% BRE MG Sienna Heights LLC 45,254,526 10 0.34% Wood Lancaster 23,685,303 10 0.28% Top Ten Total 529,712,113 $ 3.98% Top Ten Total 404,397,684 $ 4.84% 2011-122020-21
CITY OF LANCASTER
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(161)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed A ssessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
Rami Darghalli Trust 67,831,253 $ 1 0.51% Basrock 92,006,137 $ 1 1.10% Walmart Stores INC 62,245,360 2 0.47% Walmart 50,894,858 2 0.61% BRE MG Granada Villias LLC 54, 924,012 3 0.41% Avenue K Lancaster UCM Cadenc 46,879,846 3 0.56% TA High Desert LLC 54,835,443 4 0.41% US Industrial Reit II 45,284,000 4 0.54% BRE MG Cordova Park LLC 52,178,736 5 0.39% Thrifty Payless Inc 34,439,192 5 0.41% Thrifty Payless Inc. 49,224,466 6 0.37% Bank of America 31,158,315 6 0.37% BYD Coach and Bus LLC 49,034,258 7 0.37% Federal National Mortgage Assoc 27,313,138 7 0.33% AG Sunset Ridge Owner LP 47,210,000 8 0.35% MGP IX Reit LLC 27,150,000 8 0.32% Vereit Real Estate LP 46,974,059 9 0.35% Sygma Network Inc 25,586,895 9 0.31% BRE MG Sienna Heights LLC 45,254,526 10 0.34% Wood Lancaster 23,685,303 10 0.28% Top Ten Total 529,712,113 $ 3.98% Top Ten Total 404,397,684 $ 4.84% 2011-122020-21
CITY OF LANCASTER
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(DOLLARS IN THOUSAND, EXCEPT PER CAPITA)
(162)
*Business-Type
Lease Assessment Activity Total
Fiscal Revenue District Revenue Primary Per
Year Bonds Bonds Bonds Government Capita
2012 - $ 3,760$ 26,895 $ 30,655 $ 159.55% 0.19 2013 - 3,295 26,336 29,631 148.45% 0.19 2014 - 2,805 25,359 28,164 142.01% 0.18 2015 - 2,280 24,850 27,130 136.81% 0.17 2016 - 1,370 23,745 25,115 125.87% 0.16 2017 - 15,200 22,140 37,340 195.17% 0.24 2018 - 14,215 22,195 36,410 191.69% 0.23 2019 14,340 14,157 21,735 50,232 254.71% 0.31 2020 14,085 12,630 21,225 47,940 229.77% 0.30 2021 13,820 12,060 20,284 46,164 206.87% 0.27 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Percentage
of Personal
Income
CITY OF LANCASTER
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(163)
Percentage of
General Actual Taxable
Fiscal Obligation Value a of Per
Year Bonds Total Property Capita b
2012 - $ 249,160$ 249,160 $ 2.9804% 1.58 2013 - 242,465 242,465 2.9359% 1.53 2014 - 228,955 228,955 2.7012% 1.43 2015 - 218,715 218,715 2.3419% 1.37 2016 - 193,400 193,400 1.9368% 1.23 2017 - 180,410 180,410 1.7084% 1.14 2018 - 172,275 172,275 1.5597% 1.07 2019 - 163,995 163,995 1.3899% 1.01 2020 - 154,784 154,784 1.2172% 0.96 2021 - 161,023 161,023 1.2086% 0.94 Notes: Details regarding the outstanding redevelopment debt can be found in the notes to the financial statements. a See Schedule 6 (Exhibit C-1) for property value data. b Population data can be found in Schedule 14 (Exhibit E-1).
General Bonded Debt Outstanding
Redevelopment
Bonds
Tax Allocation
CITY OF LANCASTER
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED JUNE 30, 2021
(164)
Estimated
Share of
Total Estimated Direct and
Debt Percentage Overlapping
Outstanding Applicable Debt
Direct Debt
Direct Borrowings 3,305,505 $ 100.00% 3,305,505 $ Other Debt:
Streetlight Acquisition Bonds of 2016 12,060,000 100.00% 12,060,000 Public Improvement Project Bonds of 2018 13,820,000 100.00% 13,820,000 Unamortized Bond Premiums 7,415,353 100.00% 7,415,353 CFD 89-1 Series 1997 A & B - 100.00% - Measure M & R Street Improvement 46,235,000 100.00% 46,235,000 Other Long-Term Liabilities 6,547,822 100.00% 6,547,822 Total Direct Debt 89,383,680$
Overlapping Tax and Assessment Debt
464.5 EASTSIDE UNION DS 1998 SERIES A 907,862 $ 62.219% 564,860 464.54 EASTSIDE UNION DS 2016 REF 3,955,000 62.219% 2,460,748 529.5 LANCASTER SD DS 1999 SERIES A 2,189,714 97.328% 2,131,197 529.51 LANCASTER SD DS 1999 SERIES 2001 6,690,468 97.328% 6,511,674 529.53 LANCASTER SD DS 2012 SERIES 2013A 17,205,000 97.328% 16,745,219 529.54 LANCASTER SD DS 2012 SERIES 2013B 10,755,000 97.328% 10,467,587 529.55 LANCASTER SD DS 2012 SERIES 2018C 26,184,908 97.328% 25,485,151 689.54 WESTSIDE UNION SD DS 1998 SERIES A 1,844,130 29.029% 535,336 689.55 WESTSIDE UNION SD DS 1998 S-2001A 2,516,302 29.029% 730,463 689.56 WESTSIDE UNION SD DS 1998 S-2002A 1,865,450 29.029% 541,525 689.61 WESTSIDE UNION SD DS 2008 SERIES A 8,668,068 29.029% 2,516,272 689.62 WESTSIDE UNION SD DS 2008 SERIES B 12,753,931 29.029% 3,702,365 689.63 WESTSIDE UNION SD DS 2012 SERIES A 10,615,000 29.029% 3,081,451 689.64 WESTSIDE UNION SD DS 2012 SERIES B 13,410,000 29.029% 3,892,817 717.54 ANTELOPE VALLEY JUHSD REF SERIES 2012 46,810,000 38.613% 18,074,972 717.55 ANTELOPE VALLEY UNION HSD DS REF 2015 4,504,873 38.613% 1,739,488 792.55 ANTELOPE VALLEY CCD DS 2014 REF SERIES A 17,400,000 36.262% 6,309,659 792.56 ANTELOPE VALLEY CCD DS 2014 REF SERIES B 8,760,000 36.262% 3,176,587 792.57 ANTELOPE VALLEY CCD DS 2015 REF 77,683,682 36.262% 42,204,006 792.58 ANTELOPE VALLEY CCD DS 2016 SERIES A 22,945,000 36.262% 8,320,410 792.59 ANTELOPE VALLEY CCD DS 2020 220,685,000 36.262% 80,025,699 Total Overlapping Tax And Assessment Debt 239,217,486
Total Direct And Overlapping Governmental Funds Debt 328,601,166 $ City Assessed Valuation 4,256,996,964 $
Incremental Value 7,530,141,888
Total Assessed Valuation 11,787,138,852 $
Debt to Assessed Valuation Ratios:
Direct Debt 0.758%
Overlapping and Assessment Debt 2.029%
Total Direct and Overlapping Governmental Funds Debt 2.788% Notes:
Source: HdL Coren & Cone, Los Angeles Co Assessor & Auditor Combined 2020/21 Lien Date Tax Rolls, City of Lancaster Finance Dep artment Overlapping governments are those that coincide, at least in par t, with the geographic boundaries of the City of Lancaster. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were esti mated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
CITY OF LANCASTER
LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(DOLLARS IN THOUSANDS)
(165)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed Valuation 8,359,886 $ 8,258,563 $ 8,476,065 $ 9,339,027 $ 9,985,444 $ 10,560,364 $ 11,045,188 $ 11,799,191 $ 12,716,740 $ 14,086,117 $ Debt Limit (3.75% of Gross AV) 313,496 309,696 317,852 350,214 374,454 396,014 414,195 442,470 476,878 528,229 Total Net Debt Applicable to Limit - - - - - - - - - - Legal Debt Margin 313,496 $ 309,696 $ 317,852 $ 350,214 $ 374,454 $ 396,014 $ 414,195 $ 442,470 $ 476,878 $ 528,229 $ Total Net Debt Applicable
to the Limit as a Percentage
of Debt Limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Source: Los Angeles County Assessor data, HdL Coren & Cone Fiscal Year
CITY OF LANCASTER
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(DOLLARS IN THOUSANDS)
(166)
Property
Fiscal Tax
Year Increment Principal Interest Coverage
2012: 7/1/11-1/31/12* 24,020 4,155 6,717 2.21 2012: 1/31/12-6/30/12* 9,288 2,495 6,629 1.02 2012 33,308 6,650 13,346 1.67 2013 19,564 6,695 12,618 1.01 2014 23,252 16,005 12,313 0.82 2015 23,535 9,675 11,477 1.11 2016 25,590 11,255 10,531 1.17 2017 21,248 6,350 7,600 1.52 2018 20,826 8,285 6,729 1.39 2019 19,409 8,435 7,002 1.26 2020 20,350 8,685 6,802 1.31 2021 21,052 8,985 6,493 1.36 Notes: Details regarding the city's outstanding redevelopment debt can be found in the notes to the financial statements. *Fiscal year 2012 is split because the Redevelopment Agency o fficially dissolved on February 1, 2012 and started receiving property taxes from the County of Los Angeles instead of "Property Tax Increment." Debt Service
Redevelopment Tax Allocation Bonds
CITY OF LANCASTER
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
YEAR ENDED JUNE 30, 2021
(167)
Calendar
Year Population
Personal income (in
Thousands)
Per Capita
Personal Income
Unemployment
Rate Median Age
% of Pop 25+
with High
School Degree
% of Pop 25+
with Bachelor's
Degree
2012 158,630 $3,166,255 $19,960 13.10% 31.4 80.80% 16.50% 2013 159,878 $3,170,860 $19,833 10.90% 31.5 80.60% 16.20% 2014 159,956 $3,171,927 $19,830 9.20% 32.3 79.80% 15.70% 2015 157,094 $3,134,596 $19,953 7.50% 32.2 80.20% 15.40% 2016 157,820 $3,019,475 $19,132 5.90% 31.7 81.40% 15.10% 2017 161,485 $3,067,258 $18,994 5.10% 31.8 81.40% 15.50% 2018 161,604 $3,187,146 $19,721 6.60% 32.4 82.30% 16.00% 2019 161,699 $3,373,741 $20,864 6.40% 32.4 82.00% 16.20% 2020 171,674 $3,830,805 $22,315 5.00% 32.6 82.60% 17.60% 2021 171,674 $3,838,000 $22,356 6.50% 32.94 82.60% 10.39%
CITY OF LANCASTER
TOP 10 PRINCIPAL EMPLOYERS
CURRENT CALENDAR YEAR AND TEN YEARS PRIOR
YEAR ENDED JUNE 30, 2021
(168)
Percentage Percentage
Estimated of Total Valley Estimated of Total Valley
Employer Employees Rank Employment Employer Employees Rank Employment Northrop Grumman 28,000 1 32.30% Edwards Air Force Base 10,808 1 17.45% Edwards Air Force Base 8,929 2 10.30% China Lake Navel Weapons 9,172 2 14.81% County of Los Angeles 3,933 3 4.27% County of Los Angeles 3,953 36 . 3 8 % China Lake NWC 3,700 4 3.00% Lockheed Martin 3,000 44 . 8 4 % Lancaster School District 2,600 5 4.54% Palmdale School District 2,682 54 . 3 3 % Antelope Valley Hospital Medical Center 2,425 6 2.65% Antelope Valley Hospital 2,619 64 . 2 3 % Antelope Valley Union Highschool District 2,300 7 2.80% Northrop Grumman 2,573 74 . 1 6 % Walmart 1,900 8 2.19% AV Union High School District 2,037 83 . 2 9 % AV Mall 1,800 9 2.08% Wal-Mart (5) 1,922 93 . 1 0 %
Palmdale School District 1,792 10 2.07% California Correctional Institute 1,915 10 3.09% TOTAL Employment 86,688 66.19% 61,923 65.70%
Source: GAVEA 2021: City of Lancaster CAFR FY 2010-2011 Notes: Total employment as used above may represent figures from total employment located within the Greater Antelope Valley r egion. The Greater Antelope Valley is considered to be the City's economic region and covers 3,514.2 square miles of area and includes Lancaster, Palmdale, Tehachapi, Mojave, Edwards AFB, and R idgecrest. 2021 2012
CITY OF LANCASTER
FULL-TIME-EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(169)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General Government
Administrative Services 2.00 4.00 8.00 6.00 3.00 1.00 13.00 16.00 15.00 12.00 City Clerk 4.00 4.00 3.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 City Manager 8.25 8.25 9.25 10.25 11.75 12.75 9.75 8.00 10.00 9.00 Economic Development 4.00 2.00 2.00 3.00 4.00 4.00 5.00 2.00 23.00 Finance 22.00 21.00 25.00 24.00 25.00 25.00 19.00 18.00 17.00 Housing and Neighborhood Revitalization 30.00 22.00 20.00 19.00 20.00 20.00 19.00 21.00 17.00 17.00 Human Resources 5.00 5.00 5.00 5.00 4.00 6.00 7.00 7.00 7.00 10.00 Planning 12.00 - - - - - - - - - Redevelopment - - - - - - - - - - City Attorney - - - 1.00 1.00 2.00 2.00 2.00 Development Services 128.00 124.00 125.00 124.00 131.00 131.00 124.00 124.00 122.00 105.00 Lancaster Choice Energy - - - - 8.00 8.00 5.00 4.00 1.00 - Parks, Recreation and Arts 56.00 54.00 51.00 53.00 45.00 45.00 45.00 47.00 45.00 51.00 Public Safety 16.00 15.00 13.00 13.00 12.00 12.00 13.00 11.00 12.00 26.00 Less vacancies filled by internal recruitments - - (11.00) (8.00) (22.00) (18.75) (19.00) (8.00) - - Total 287.25 259.25 250.25 252.25 245.75 251.00 245.75 255.00 249.00 256.00 Year over year (13.00) (28.00) (9.00) 2.00 (6.50) 5.25 (5.25) 9.25 (6.00) 7.00 Source: City Human Resources Department
Note: The Lancaster Redevelopment Agency was dissolved according to ABx1 26 which was signed into law June 29, 2011.
Note: The City went through a reorganization in 2021 resulting in ACS being disolved and divisions being absorbed by various departments
CITY OF LANCASTER
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
YEAR ENDED JUNE 30, 2021
(170)
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General government
City Hall 1 1 1 1 1 1 1 1 1 1 Annex/Record Center - - - - - - - - - - Community Development
Brierwood Mobile Home Park - - - - - - - - - - Desert Sands Mobile Home Park 1 1 - - - - - - - - Development Services
Maintenance Yard - Modular Office Bldg. 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Office/Warehouse 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Maintenance Garage 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Canopy 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Storage Bldg 4 4 4 3 3 3 3 3 3 3 Maintenance Yard - Wash Bay 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - HazMat Storage Bldg 1 1 1 1 1 1 1 1 1 1 Streets (miles) 633 640 640 1,765 1,765 1,765 1,765 1,765 1,769 482 Streetlights (owned by City) 1,157 1,875 1,895 1,895 1,908 19,576 19,576 19,576 19,576 19,777 Traffic signals 138 137 139 147 145 153 153 141 143 143 Street Signs 26,334 26,378 26,400 26,412 26,472 26,759 38,000 38,000 38,000 38,000 Fleet Vehicles 301 301 318 304 322 320 318 321 321 318 Storm Drain Pipe (LF) 434,005 485,113 485,113 485,113 485,113 420,239 420,239 430,445 430,868 432,434 Storm Drain Box (LF) 26,169 27,993 27,996 27,996 27,996 27,996 27,996 9,217 9,217 9,217 Storm Drain Box (Each) 1,547 1,547 1,477 1,477 1,487 Storm Drain Channel (LF 44,883 44,883 44,883 44,883 44,883 45,733 45,733 45,951 45,951 45,951 Sewer Pipe (LF) 2,265,580 2,261,609 2,265,120 2,265,120 2,262,626 2,268,696 2,268,527 2,265,120 2,271,627 2,276,401 Sewer Manholes 9,005 9,035 9,188 9,042 8,966 8,975 8,977 9,073 9,106 9,130 Sewer Lift Station 1 1 1 1 1 1 1 1 1 1 Drainage Lift Station 13
Parks, Recreation and Arts
Acreage 538 538 538 538 538 538 538 558 558 558 Developed park sites 14 14 14 14 14 14 14 14 14 14 Pools 2 2 2 2 2 2 2 2 2 2 Big 8 Tournament Baseball complex 1 1 1 1 1 1 1 1 1 1 Batting Cage Facility 1 1 1 1 1 1 1 1 1 1 Soccer complex 1 1 1 1 1 1 1 1 1 1 Community/Activity Centers 7 8 8 8 8 8 8 8 8 8 Cedar Center 1 1 1 1 1 1 1 1 1 1 Prime Desert Woodlands Preserve/Nature Cnt r 1 1 1 1 1 1 1 1 1 1 Municipal Baseball Stadium 1 1 1 1 1 1 1 1 1 1 Performing Arts Center 1 1 1 1 1 1 1 1 1 1 Museum and Art Gallery 1 1 1 1 1 1 1 1 1 1 Western Hotel (historic site) 1 1 1 1 1 1 1 1 1 1 Metrolink Station 1 1 1 1 1 1 1 1 1 1 Park and Ride Lots 8 8 8 8 8 8 8 8 8 8 Sources: Various city departments.
*Estimated figures
Fiscal Year
STAFF REPORT
City of Lancaster
Date: June 28, 2022
To: Mayor Parris and City Council Members
From: George N. Harris II, Finance Director
Subject:TDA Article 8 FY 2021-22 Application for Available Funds Recommendation:
Approve Resolution No. 22-32, authorizing the City Manager, or his designee, to apply for $7,020,328 of funds available to the City of Lancaster from Los Angeles County Metropolitan Transportation Authority (LACMTA).
Fiscal Impact:
The application includes a request of FY 2021-22 allocation in the amount of 6,975,098, as well as a request of prior year’s reserves: FY 2020-21 in the amount of $45,230. The amount left on the reserve for FY 2020-21 is $19,441.
Background:
Annually, Los Angeles County Metropolitan Transportation Authority allocates Transportation Development Act (TDA) Article 8 funds to fund unmet transit needs in areas outside the Metro service area.
TDA Article 8 revenues will be used by the City to fund the following Council-approved and budgeted Capital Improvement Projects and operating transfers:
10 th Street West Bikeway and Road Diet
Lancaster Health District
Traffic Overhead Sign Replacement
Pedestrian Gap Closure Improvement
High Vis Crosswalk Standardization
2020 Fall Pavement Management Program
Commercial Driveway Access
Edgeline Refresh Project
GH:LH
CC 10
06/28/2022
JC
9 6
4 Attachments
Memo to TDA Article 8 recipients dated October 22, 2021 from the Los Angeles County Metropolitan Transportation Authority
Resolution No. 22-32
TDA8 CIP Budgeted 2021-22
9 6
4 9
6 4
9 6
4 9
6 4
October 22, 2021
MEMO TO: TDA ARTICLE 8 RECIPIENTS
FROM: DREW PHILLIPS, DEPUTY EXECUTIVE OFFICER
LOCAL PROGRAMMING
SUBJECT: DEADLINE TO SUBMIT THE TDA 8 CLAIM FORMS FY 2021-22
Please note effective August 8, 2018, the deadline to submit the TDA 8 claim forms for FY2021-22 is June 30, 2022.
Thank you in advance for your cooperation.
_______________________________
DREW PHILLIPS
DEPUTY EXECUTIVE OFFICER, FINANCE
RESOLUTION NO. 22-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, CALIFORNIA, AUTHORIZING THE CITY MANAGER,
OR HIS DESIGNEE, TO APPLY FOR ALL FUNDS AVAILABLE TO
THE CITY OF LANCASTER, FROM THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY, ALLOCATED
FOR STREET AND ROAD IMPROVEMENTS FOR THE FISCAL
YEAR 2021-22 IN THE AMOUNT OF $6,975,098 AND DRAW
RESERVES FOR: FISCAL YEAR 2020-21 IN THE AMOUNT OF
$45,230.
WHEREAS, Article 8 of the Transportation Development Act provides that cities can use eligible funds of the County’s Local Transportation Fund for local streets and road expenditures when the City’s unmet transportation needs have been satisfied; and WHEREAS, the City of Lancaster has met its unmet public transportation needs through an agreement with the Los Angeles County Metropolitan Transportation Authority to provide public transportation in the City of Lancaster;
WHEREAS, the City of Lancaster desires to use its portion of its allocation of Transportation Development Act funds for minor street and road improvements;
NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF LANCASTER, STATE OF CALIFORNIA, THAT:
Section 1. The City Manager, or his designee, is authorized to sign on behalf of the City of Lancaster and is the City’s designated contact person.
Section 2. The City Manager, or his designee, is authorized to, and shall, apply for all funds available to the City of Lancaster allocated for street and road improvements for Fiscal Year 2021-22 in the amount of $6,975,098, and draw reserves for: Fiscal Year 2020-21 in the amount of $45,230.
PASSED, APPROVED, and ADOPTED this 28th day of June 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Resolution No. 22-32