• Collaborate with management to develop a high-level project plan for the engagement • Conduct a kickoff meeting with appropriate stakeholders as identified by management Phase 2 – Current State Assessment
We will gain a further understanding of the entity and the current SBITA and service contracts.
Responsibilities may include, but not be limited to, the following:
• Collaborate with management to gain an understanding of the entity’s current state as it relates to SBITAs. This includes analyzing prior SBITA disclosure, classification and documentation of current state
• Customize the project plan communicating key tasks, milestones, and responsibilities • Develop a GASB 96 training customized for the entity’s team members • Obtain and inventory all explicit SBITAs and relevant service contracts selected by management throughout the entity
• Collaborate with management to assist with verifying the completeness of the SBITA population
• Conduct initial discussions related to embedded SBITAs and develop a plan for CLA’s embedded SBITA analysis
• Conduct discussions with management regarding transition method Phase 3 - SBITA Accounting Software Evaluation, Configuration, and Testing We will assist management with determining SBITA configuration and testing needs within CLA’s “Licensed Solution.” Responsibilities in this phase may include, but not be limited to, the following:
• Gain an understanding of the complexity of the SBITA population and desired SBITA software functionality
• Based upon management-selected mapping, features, functionality options and settings within the software, assist with the software configuration to facilitate proper mapping • Assist in preparing test batches to be uploaded and in validating the calculation results and reports from the system
• Assist with uploading and testing accuracy of output for the full population of SBITAs Phase 4 – SBITA Analysis and Implementation
We will consult with management in the determination as to whether an arrangement meets the definition of a SBITA under GASB 96 and assist in the collection of the required data to record the SBITA on the balance sheet. Responsibilities may include, but not be limited to, the following:
• For SBITAs identified by management, read each agreement and assist with identifying and documenting key attributes within each SBITA to be input into the selected software • Perform and document an embedded SBITA assessment and the conclusions management draws as part of the assessment
• After management’s detail review or analysis of key attributes gathered, assist with the input of key SBITAs data and terms into the selected software or tool • Advise on incremental borrowing rate
• Assist with drafting the technical accounting memo
• Assist with drafting the required disclosures
Phase 5 – Functional Area Analysis and Execution*
We will assist management to perform an analysis to obtain an understanding of the impact the guidance will have on each functional area. In addition, assist with the change management of processes across impacted functional areas. Responsibilities may include, but not be limited to, the following:
• Assist with the performance of a functional area impact assessment • Assist with the determination of “action” items versus “awareness” items • Assist with the development of a functional area project plan • Provide training of key aspects of guidance to functional areas • Provide recommendations and directly assist management, as needed, with management’s approved modifications to existing accounting and reporting processes, accounting policies, and process and internal control documentation *Our methodology and approach are executed in five phases as outlined above. We typically engage with our clients initially for phases 1-4. Since the potential impact to your functional areas and related processes are unknown at this time, estimates cannot be provided for phase 5. If there is minimal impact to the organization’s functional areas and related processes and/or you are able to address and implement changes internally, our assistance with phase 5 may not needed.
2. Additional assistance
Upon your request, CLA shall make its resources available to provide additional assistance with implementing the new SBITA standard. If additional assistance is needed outside of the scope of services outlined above, a separate SOW will be executed.
3. Client information requirements
The entity agrees it is solely responsible for the accuracy, completeness, and reliability of all of the
entity’s data and information that it provides CLA for our engagement. The entity agrees it will provide any requested information on or before the date we commence performance of the services.
4. CLA’s responsibilities related to the nonattest services and the related limitations CLA will not assume management responsibilities, perform management functions, or make management decisions on behalf of the entity. However, we will provide advice and recommendations to assist management in performing its responsibilities.
This engagement is limited to the nonattest services outlined above. CLA, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as assuming management responsibilities, making management decisions, or performing management functions, including approving journal entries. CLA will advise the entity with regard to positions taken in the performance of the nonattest services, but management must make all decisions with regard to those matters.
We have no responsibility to ensure the entity’s SBITA accounting practices comply with applicable laws or regulations, all of which remain your sole responsibility.
Because the services listed above do not constitute an examination, audit, or review, we will not express an opinion or conclusion or issue a written report on your application of the requirements of GASB Statement No. 96 as it relates to contracts. You agree that our services are not intended to be used by a third party in reaching a decision on the application of the requirements of GASB Statement No. 96 to a specific transaction.
We will perform this engagement in accordance with the Statement on Standards for Consulting Services issued by the American Institute of Certified Public Accountants (AICPA) and comply with the AICPA’s Code of Professional Conduct, including the ethical principles of integrity, objectivity, professional competence, and due care.
Our engagement cannot be relied upon to identify or disclose any financial statement misstatements, including those caused by fraud or error, or to identify or disclose any wrongdoing within the entity or noncompliance with laws and regulations. We have no responsibility to identify and communicate deficiencies in your internal control as part of this engagement. You agree that we shall not be responsible for any misstatements in the entity’s financial statements that may not be identified as a result of misrepresentations made to us by you.
CLA's relationship with you shall be solely that of an independent contractor and nothing in the MSA or a SOW shall be construed to create or imply any relationship of employment, agency, partnership, or any relationship other than an independent contractor.
5. Management’s responsibilities related to nonattest services For all nonattest services we may provide to you, George Harris, Director of Finance agrees to assume all management responsibilities, including determining, reviewing, and approving SBITA information and schedules and related journal entries; oversee the services; evaluate the adequacy and results of the services; and accept responsibility for the results of the services. Management is also responsible
for ensuring that your data and records are complete and that you have received sufficient information to oversee the services.
6. Engagement administration and other matters
A list of information we expect to need for our engagement and the dates required will be provided in a separate communication.
Our relationship with you is limited to that described in this SOW. As such, you understand and agree that we are acting solely as independent accountants. We are not responsible for the preparation of any report to any governmental agency, or any other form, return, or report or for providing advice or any other service not specifically recited in this SOW.
7. Schedule
We estimate that your needs will be approximately 30 - 90 hours for the engagement starting October 26, 2023. As the engagement progresses, we will update time estimates and engage you in conversation about the project status.
In addition, beginning in year one and every year thereafter, we will bill a SBITA service fee at an annual charge of $175.00 per SBITA record. On an ongoing basis, professional service fees for activities including, but not limited to, assistance with analyzing new explicit SBITAs and contracts, modifications to SBITA schedules, and other consultative matters will be billed at our standard rates for actual time spent.
There will be a one-time charge of $0.00 for setting up a separate configuration of the SBITA accounting software should the desired journal entry output be at the department level rather than the top side level.
Travel is not expected on this engagement; however, travel time will be billed at the normal hourly rate if travel is required. We will also bill you in arrears for reimbursement of any out-of-pocket travel expenses incurred (e.g., hotel, airfare, meals as actual or per diem, etc.) on a pass-through basis.
Fees, plus applicable state and local taxes, will be billed twice per month in arrears, due upon receipt.
8. Consultant
Nicola Bain is responsible for the services identified in this agreement.
The consultants and associated billable hourly rates will be:
Consultant Rate
Michael Luff $285
Adrian Tannian $200
9. Confidentiality and restricted use of information
The entity agrees any reports or deliverables CLA provides to the entity are only for the internal use of the entity’s management. They may not be distributed to any other person or party, for any purpose, without our prior written consent. The entity further agrees to hold any information, reports, or deliverables that CLA provides to the entity in confidence and agrees that the entity will not disclose such to any other person or party, unless CLA authorizes the entity to do so, it is published or released by us, or it becomes then publicly known or available other than through disclosure by the entity.
10. Non-Solicitation
You agree that during the term and for a period of one year after the expiration or termination date of the MSA, you will not solicit, hire, contract with, or engage the services of any person providing services to you on behalf of CLA without the prior written consent of CLA. If you breach this non- solicitation provision, you shall pay $125,000.00 to CLA as liquidated damages within two weeks of the date on which the former CLA employee or consultant begins his or her new employment with you.
11. Indemnity
For the services described in this SOW, you agree to indemnify and hold harmless CLA, its successors and affiliates, officers, employees, and agents from any claims brought or asserted by any other person, third party, or governmental body for any loss, damages, liabilities, remedies, or cause of action, and from any reasonable expenses incurred in defending against any such claims or actions (including attorney fees) arising from or relating to the services performed by any CLA party.
12. Termination of SOW
Either party (you or CLA) may terminate this particular SOW at any time by giving 30 days written notice to the other party. Upon termination of this particular SOW, the provisions of this SOW and the existing MSA shall continue to apply to all services rendered prior to termination.
13. Agreement
We appreciate the opportunity to provide the services described in this SOW under the MSA. All terms and provisions of the MSA shall apply to these services. If you agree with the terms of this SOW, please sign below and return a signed copy to us to indicate your acknowledgment and understanding of, and agreement with, this SOW.
CliftonLarsonAllen LLP
Nicola Bain
Client Relationship Leader
646-604-0015
[email protected]
Response
This SOW correctly sets forth the understanding of City of Lancaster and is accepted by:
CLA
CliftonLarsonAllen LLP
Nicola Bain, Client Relationship Leader
SIGNED 11/6/2023, 1:08:06 PM PST
Client
City of Lancaster
George Harris, Director - Finance
SIGNED 11/6/2023, 1:07:13 PM PST
STAFF REPORT
Lancaster Housing Authority
JCC
5/7/24
JC
Date: May 7, 2024
To: Mayor Parris and City Council Members
Mayor Parris and Housing Authority Members
From: Sonya Patterson, Director – Parks, Arts, Recreation, and Community Services Larissa De La Cruz, Director – Community Development
Subject:Lancaster University Center Lease Amended and Restated Lease Agreement Recommendation:
1. Approve amended and restated lease agreement for real property to Cal State Long Beach’s Extension Campus, the Lancaster University Center, through December 2024.
2. Authorize the Executive Director, or his designee, to sign all documents related to the lease agreement.
Fiscal Impact:
Lancaster Housing Authority to receive $5,375 per month in rent, resulting in revenue of $64,500 through the term of the lease.
Background:
Real property known as Lancaster University Center, located at 45356 Division Street, 93535, has been leased to California State Long Beach (CSULB), for its bachelor's degree program in engineering annually since 2013. In 2021 the agreement was amended to include adjustments to the monthly rent. The amended and restated agreement in 2022 outlined updates to maintenance and responsibilities and insurance coverage.
Staff recommends the approval of the amended and restated lease agreement with CSULB, as the lease of space to the university has provided a valuable resource for residents to pursue STEM education and career opportunities in the aerospace industry. Local companies like Northrop and Lockheed have hired graduates from the program, highlighting the strong demand for a skilled STEM workforce in the region.
SP:AC
Attachment:
2024 Amended and Restated Lease Agreement
1 AMENDED AND RESTATED LEASE AGREEMENT
THIS AMENDED AND RESTATED LEASE AGREEMENT (“AGREEMENT”) is made this 1st day of January 2024, by and between the CITY OF LANCASTER, a California municipal corporation and charter city (the “Lessor”), and the TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY, ON BEHALF OF CALIFORNIA STATE UNIVERSITY LONG BEACH (the “Lessee”). The Lessor and Lessee are referred to individually as a “Party” and collectively as the “Parties”.
RECITALS
A. WHEREAS, the Parties entered into that certain Lease Agreement dated December 23, 2014 (“Original Lease”) with regard to that certain real property illustrated and designated on the Site Map attached hereto as Attachment No. 1 and incorporated herein by reference (the "Site Map"), and as more particularly described in the Site Description attached hereto as Attachment No. 2 and incorporated herein by reference (the "Site Description"); and
B. WHEREAS, Lessee has requested permission to use the Site for the reason(s) and purpose(s) described in the Description of Use attached hereto as Attachment No. 3 and incorporated herein by reference (the "Description of Use"); and
C. WHEREAS, the Parties desire to amend and restate the terms of the Original Lease in their entirety.
NOW THEREFORE, the Parties agree as follows:
AGREEMENT
1. SITE SUBJECT TO THIS LEASE
Lessor agrees to and hereby does lease to Lessee, and Lessee agrees to and hereby does lease from Lessor the Site in an “as -is” condition, in accordance with the following terms and conditions.
2 2. USE OF SITE
During the term hereof, the Site shall be used by Lessee solely for the purpose(s) set forth in the Description of Use.
3. TERM OF LEASE
The term of this Lease shall commence upon approval by the Lessor’s governing body (the “Effective Date”) and shall terminate at 11:59 p.m. on December 31, 2024 (the “Term”).
4. RENT
Lessee agrees to and shall pay Lessor rent for the use and occupancy of the Site payable monthly in advance on the first day of each month, in the amount of Five thousand three hundred seventy-five ($5375) (the “Rent”). The Rent amount is based on a rate of $.375 per square foot for the 20,000 square foot tenant space. In the event that the Effective Date is not the same as the first day of the month, Rent owed for any portion of a month shall be pro-rated for that month.
5. REPAIR AND MAINTENANCE
(a) Lessor shall maintain the leased premises in good repair and tenantable condition, so as to minimize breakdowns and loss of the Lessee’s use of the premises caused by deferred or inadequate maintenance, including, but not limited to:
(i) Generally maintaining the leased premises in good, vermin-free, operating condition and appearance.
(ii) Furnishing prompt, good quality repair of the building, equipment and
appurtenances.
(iii) Furnishing preventative maintenance, including, but not limited to,
manufacturers recommended servicing of equipment such as elevator (if any), heating, air conditioning and ventilating equipment and fixtures.
(iv) Furnishing and promptly replacing any inoperative ballasts, starters, and filters for the heating, ventilating, and air conditioning equipment as required. (v) Furnishing remedial painting as necessary to maintain the premises in a neat, clean and orderly condition.
3 to the leased premises.
(vi) Annual testing and maintenance of all fire extinguishers in or adjacent
(vii) Repairing and replacing parking lot bumpers and paving as necessary.
Repaint directional arrows, striping, etc., as necessary. (viii) Maintaining landscaped areas, including sprinklers, drainage, etc., on at least a semi-monthly basis, in a growing, litter -free, weed-free, and neatly mowed and/or trimmed condition.
(ix) Repairing and replacing floor covering as necessary. Lessor shall notify Lessee subsequent to the repair or replacement of floor covering so Lessee can make arrangements for moving of furniture and equipment.
(x) Keeping all walkways, parking lots, entrances, and auxiliary areas free of snow, water, oil spills, debris, or other materials which may be hazardous to users of the building. (b) Lessor shall provide prompt repair or correction on any damage except damage arising from a willful or negligent act of the Lessee’s agents, employees or invitees. (c) In case Lessor, after notice in writing from the Lessee requiring the Lessor to comply with the requirements of this paragraph in regard to a specified condition, shall fail, refuse or neglect to comply with such notice, or in the event of an emergency constituting a hazard to the health or safety of the Lessee’s employees, property, or invitees, the Lessee may terminate this lease without further obligation or perform such maintenance or make such repair at its own cost and, in addition to any other remedy the Lessee might have, may withhold rent due and deduct the amount thereof, including necessary costs incurred by the Lessee required for the administration of such maintenance and repairs, from the rent that may then be or thereafter become due hereunder.
6. SECURITY
Lessee shall be responsible for providing security on the Site for its invitees, employees and students.
4 7. UTILITIES AND SERVICES
Lessor shall be solely responsible for payment of the following utilities and services furnished to, or used by Lessee at the Site, including without limitation, gas, electricity, water, sewer, janitorial service, landscaping service, general maintenance service and waste refuse, repair and maintenance performed by the Lessor pursuant to Section 5 of this Lease a nd all applicable taxes, levies, connection charges, fees, and surcharges imposed on the Site or on Lessee’s possessory interest therein, if applicable. Lessee shall be solely responsible for telephone and cable services, connection charges, surcharges, charges, fees and fees for such services.
8. CONDITION OF SITE; ALTERATIONS AND REPAIRS
Lessor has provided Lessee with the opportunity to review all documentation in Lessor’s possession regarding the Site, including without limitation all environmental, fire and peer review reports, and has allowed Lessee and its designated representatives to inspect the Site and improvements located thereon.
Lessor shall appoint a contact with whom Lessee may confer regarding the terms of this agreement.
Lessee acknowledges that it accepts the Site in its existing condition and agrees to make no demands upon Lessor for any alterations or improvements, unless agreed to by the Lessor.
Lessee shall have the right to make alterations or improvements only upon receipt of written approval thereof from Lessor. If and to the extent Lessee makes approved alterations and/or improvements to the Site, such alterations and/or improvements shall be at Lessee’s sole cost and expense and shall be subject to all applicable laws, regulations, ordnances and conditions imposed by Lessor.
Lessee shall contact Lessor point of contract for emergency repairs.
9. TAXES
Lessee shall be liable for any and all taxes which may be levied or assessed upon the personal property and fixtures belonging to Lessee and located on the Site. The parties understand that this Lease may create a possessory interest. Lessee hereby agrees to be solely responsible, 5 and pay or otherwise legally resolve any taxes imposed on such possessory interest should it be determined to exist.
10. LIABILITIES AND INDEMNIFICATION
Both Lessor and Lessee are public entities under Government Code Section 895.2. Pursuant to Government Code Section 895.4 each party, shall assume liability for bodily injury or death and property damage caused by its negligence or willful misconduct arising from or connected with its performance under this agreement to the extent that such liability would be imposed in the absence of Government Code Section 895.2. To that end, each party shall inde mnify and hold the other harmless from and against any damage, demand, cause of action, claim loss, cost, expense or liability that may be imposed on such other party by virtue of Government Code Section 895.2 arising from or connected with its performance under this Agreement. Each party waives subrogation. The provisions of Civil Code Section 2778 are made a part hereof as if fully set forth.
Lessee warrants that, with regard to its officers, employees, and servants, it is self-insured with no specified m onetary limit pursuant to the provisions of the California Government Code.
This self-insurance covers liability including that of bodily injury, personal injury, professional liability and property damage.
11. RIGHT OF ENTRY
The Site shall be open to the inspection of proper governmental authorities within reasonable hours and with reasonable notice to the Lessee designated site contact.
12. AUTHORITY TO STOP
In the event that an authorized representative of Lessor finds that the activities being held on the Site unnecessarily endanger the health and/or safety of persons on or near said Site, or endanger said Site, such authorized representative may require that the Site be closed until said endangering activities cease.
6 13. DEFAULT
The Parties agree that if a default is made in any of the covenants and agreements herein contained to be kept by the Parties, the non-defaulting party may immediately terminate this Lease.
14. ASSIGNMENT
This Lease is personal to Lessee, and in the event Lessee shall attempt to assign or transfer the same in whole or part, without the prior written consent of Lessor (which consent shall not be unreasonably withheld), this Lease shall terminate and all rights hereunder shall immediately cease and come to an end. Notwithstanding the foregoing, Lessor’s City Manager is hereby expressly authorized to consent to the assignment or sublease of this Lease.
15. OPERATIONAL RESPONSIBILITIES
Lessee shall:
(a) Use the Site as an educational facility;
(b) Comply with the covenants, conditions, and restrictions set forth in this Lease; (c) Comply with and abide by all applicable rules and regulations reasonably adopted by Lessor;
(d) Comply with all applicable City of Lancaster, State and Federal laws and, in the course thereof, obtain and keep in effect all permits and licenses required to conduct the authorized activities on the Site;
(e) Maintain the Site in a clean and sanitary condition; (f) Conduct the authorized activities in a courteous and non-profane manner; and remove’ any agent, servant or employee who fails to conduct the authorized activities on the premises in the manner heretofore described;
(g) Assume the risk of loss, damage or destruction due to theft, fire and casualty of any and all fixtures and personal property belonging to Lessee that are installed or placed within or upon the Site;
7 (h) During the Term of the Lease, repair damage to the Site, improvements upon the Site, fixtures upon the Site and/or personal property owned by Lessor that is located upon the Site related to the Lessee’s use of the Site unless such damage is caused by Lessor, its agents or employees; (i) Permit Lessor and/or its authorized representatives to enter the Site during business hours for the purpose of determining whether the Lessee’s use of the Site complies with the terms of this Lease; and
(j) Prohibit signs or matter to be displayed upon the Site other than signs displaying the Lessee’s name and/or directly related to Lessee use of the Site pursuant to and consistent with the terms and conditions of this Lease.
16. COVENANTS
The Lessee covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the following conditions:
(a) That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) an d paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Site nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in Site.
17. CLERY NOTICES
Lessors from whom the University will rent, lease, or otherwise acquire control of the Property pursuant to this Lease shall be required to report certain crimes within sixty (60) days of a written request from the University (each a “Clery Notice”). Pursuant to this Lease, Lessor shall have a duty to cooperate with the University, the University Police Department, and law enforcement authorities to promote the safety and security of University students and contribute to University’s compliance with 8 the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (the “Clery Act”), 20 U.S.C. 1092(f). Lessor shall provide timely responses to written Clery Notices requesting information and/or reporting of the following Clery Act crimes taking place upon (a) the property within which the leased premises are situated or (b) any properties adjoining the property within which the leased premises are situated that are known or should have been known by Lessor during the Term of this Agreement. Clery Act crimes s hall include murder and non -negligent manslaughter, negligent manslaughter, sex offenses (rape, fondling, statutory rape and incest), robbery, aggravated assault, burglary, motor vehicle theft, arson, arrests for liquor law violations, drug law violations, illegal weapons possession, hate crimes (including the list cited above with the addition of intimidation, larceny, simple assault and destruction/damage/vandalism to property), dating violence, domestic violence, and stalking. For Clery Act reporting, th e following definitions are applicable: The term “domestic violence” includes felony or misdemeanor crimes of violence committed by a current or former spouse or intimate partner of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim under the domestic or family violence laws or the jurisdiction receiving grant monies, or by any other person against an adult or youth victim who is protected from that person’s acts und er the domestic or family violence laws of the jurisdiction. The term “dating violence” means violence committed by a person (A) who is or has been in a social relationship of a romantic or intimate nature with the victim; and (B) where the existence of such a relationship shall be determined based on a consideration of the following factors (i) the length of the relationship, (ii) the type of relationship, (iii) the frequency of interaction between the persons involved in the relationship. The term “stalki ng” means engaging in a course of conduct directed at a specific person that would cause a reasonable person to (A) fear for his or her safety or the safety of others; or (B) suffer substantial emotional distress. Clery Notices shall be furnished in writing and by any other means Lessor chooses to provide them, including the address of the leased premises, the crimes being noticed, the date(s) of commission, and any other relevant information in the possession of Lessor, to University Police Department, Attn: Clery Co-Director, 1250 Bellflower Blvd., Long Beach, CA 90840-8001, email [email protected], non-emergency phone 562-985-4101. 9 18. NOTICES
Notices desired or required to be given by this Lease or by any law now or hereafter in effect may be given by p ersonal service or by enclosing the same in a sealed envelope addressed to the party for whom intended and by depositing such envelope with postage prepaid in the United States Post Office or any substation thereof, or any public letter box, and any such notice and the envelope containing the same shall be addressed to Lessee as follows:
California State University, Long Beach
Procurement & Contractual Services
1250 Bellflower Boulevard, BH-346 MS-0123
Long Beach, California 90840
Attention: Procurement Director
or such other place as may hereinafter be designated in writing by the Lessee and the notices and envelopes containing the same to Lessor shall be addressed to:
City of Lancaster
44933 North Fern Avenue
Lancaster, California 93534
Attn: City Manager
or such other place as may hereinafter be designated in writing by the Lessor.
19. AUTHORITY
Each of the undersigned signatories for each party hereby covenants, warrants and guarantees that each of them, jointly and severally, have the power and authority to execute this Lease upon the terms and conditions stated herein and each agrees to indemnify and hold harmless the other party from all damages, costs, and expenses, which result from a breach of this material representation.
20. TERMINATION OF LEASE
Termination of this Lease for any reason whatsoever shall not release either party from liability or obligation hereunder resulting from an event which may have occurred before such termination, or thereafter in case by the terms of this Lease it is provided that certain things shall or may have to be done after such termination (including, but not limited to, removal of fixtures 10 and equipment placed on the Site by the Lessee).
21. LIENS
Lessee shall have no power to do any act or make any contract which may be created or be the foundation for any lien, mortgage or other encumbrance upon the Site or in the buildings or improvements thereon; it being agreed that should Lessee cause any alterations, rebuilding, replacements, changes, additions, improvements, or repairs to be made to the Site, or labor performed or material furnished therein, thereon or thereto, neither Lessor nor the Site under any circumstances be liable for the payment of any expense incurred or for the value of any work done or material furnished, but all such alterations, rebuilding, replacements, changes, additions, improvements, and repairs, and labor and material, shall be made, furnished and performed at Lessee’s expense, and Lessee shall be solely and wholly responsible to the contractors, laborers and materialmen furnishing and performing such labor and material.
If, because of any act or omission (or alleged act or omission) of Lessee, any mechanic’s or other lien, charge or order for the payment of m oney shall be filed against the demised Site or any buildings or improvements thereon, or against Lessor (whether or not such lien, charge or order is valid or enforceable as such), Lessee shall, at its own cost and expense, cause the same to be cancelled and discharged of record or bonded within ten (10) days after notice to Lessee of the filing thereof, and Lessee shall indemnify and save harmless Lessor against and from all costs, expenses, liabilities, losses, damages, suits, fines, penalties, claims an d demands, including reasonable counsel fees, resulting therefrom.
22. LESSOR ADMINISTRATION OF LEASE
The City Manager of the City of Lancaster, or his or her designee, shall have the authority to administer the Lessor’s responsibilities under this Lease in accordance with its terms.
23. DESTRUCTION
If the Site or the building located thereon is totally destroyed by fire or other casualty, this Lease shall terminate.
If ten percent (10%) or less of the Site is destroyed by fire or other casualty, this Lease 11 shall n ot terminate and the Lessor shall repair and restore the Site or cause such repair and restoration as soon as is reasonably practicable, at Lessor’s expense.
If ten percent (10%) or more of the Site is destroyed by fire or other casualty, Lessor shall, as soon as reasonably practicable but in no event later than thirty (30) days following the date of such destruction, evaluate or cause the evaluation of such destruction, and give written notice to Lessee as to whether Lessor elects to (a) repair and restore the Site at Lessor’s expense, or (b) terminate this Lease. Within thirty (30) days following Lessor’s notification to Lessee of Lessor’s intent to terminate the Lease, Lessee may give notice to Lessor of Lessee’s intention to complete the repair and restoration of the Site at Lessee’s cost, in which event Lessor’s election to terminate the Lease shall be ineffective.
While Lessee remains in possession of the Site pursuant to this Lease during the period of restoration and repair thereof, the monthly rent as herein provided for shall be reduced by the same ratio as the portion of the Site which is unusable bears to the total square footage of the Site. Thus, if fifteen percent (15%) of the Site is rendered unusable due to the casualty damage, the monthly rent shall be reduced by fifteen percent (15%) during the period in which such portion of the Site is unusable.
24. NO ORAL AGREEMENTS
It is mutually understood and agreed that no alterations or variations of the terms of this lease shall be valid unle ss made in writing and signed by the parties hereto, and that no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto.
LESSOR:
CITY OF LANCASTER, A California municipal
corporation and charter city
By: ________________________________________
Jason Caudle
Its: _________________________________________
12 Title
Date: _______________________________________
ATTEST:
________________________________
City Clerk
APPROVED AS TO FORM
________________________________
City Attorney
LESSEE:
CALIFORNIA STATE UNIVERSITY LONG
BEACH
By: ________________________________________
Milton Ordonez
Its: ________________________________________
Associate Vice President
Date: ______________________________________
STAFF REPORT
City of Lancaster
CC 15
5/7/2024
JC
Date:May 7, 2024
To: Mayor Parris and City Council Members
From:George N. Harris II, Director of Finance/IT
Subject:A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LANCASTER,
CALIFORNIA, DIRECTING THE CITY MANAGER TO TAKE ACTIONS
NECESSARY TO UNDERTAKE THE FINANCING OF CERTAIN CAPITAL IMPROVEMENTS.
Recommendation:
TAKE the following actions:
1. ADOPT City Council Resolution No. 24-____ entitled A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LANCASTER, CALIFORNIA, DIRECTING THE CITY
MANAGER TO TAKE ACTIONS NECESSARY TO UNDERTAKE THE FINANCING OF CERTAIN CAPITAL IMPROVEMENTS.
Fiscal Impact:
All fees for the financing team are contingent upon successful financing and are paid out of the costs of issuance for the proposed 2024 Lease Revenue Bonds (the “Bonds”) so as not to impact the City of Lancaster’s (the “City”) General Fund. The only financing fee that would be non- contingent upon closing would be the credit rating fee after completion of the credit rating process.
Background:
The City has identified two significant projects that require funding: (1) the Multi-Agency Regional Resilience Center (the “MARRC Project”) and (2) the conversion of the City’s minor league baseball stadium into a soccer stadium for a new professional soccer team (the “Stadium Project”).
The City is planning to issue the Bonds to fund both projects and will engage the services of bond finance professionals to assist with the financing. NHA Advisors will serve as the City’s municipal advisor, Piper Sandler as underwriter, and Stradling Yocca Carlson & Rauth as bond and disclosure counsel.
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Review and Analysis:
MARRC Project:
The MARRC will serve as a fully functioning, large-scale, off-the-grid, resilient, and emergency evacuation center and event center. The proposed complex includes the construction of an emergency operations center and a culinary community kitchen. The MARRC Project is estimated to cost $81.5 million, which will be shared among several public agencies. Matching sources of funding identified to date include a $20.5 million grant awarded to the Antelope Valley Fair Authority from the California Department of Food and Agriculture (“CDFA”) Fairs and Expositions Branch. In addition, on November 2, 2023, the City of Palmdale and the Antelope Valley Fairgrounds Authority entered into an agreement whereby the City of Palmdale committed to contribute a total of $10 million to the project. In addition to these upfront contributions to the project, the Antelope Valley Union High School District (“AVUHSD”) has committed to annual contributions toward the debt service on the Bonds, totaling $10 million. Formal actions are pending regarding the County of Los Angeles and other agencies. It is expected that an additional $10-$30 Million will be contributed by other agencies. After factoring in these additional contributions from other agencies, the remaining contribution to the project from the City of Lancaster is set at a not-to-exceed amount of $50 Million under the terms of the Joint Use and Irrevocable License Agreement with the Antelope Valley Fairgrounds Authority, approved by the City Council on March 26, 2024.
Construction on the MARRC Project is expected to begin in early August 2024, with potential completion in late 2025.
Stadium Project:
The City will be converting its existing baseball stadium (previously used for the Lancaster Jet Hawks) into a 5,300-seat, soccer-specific stadium for professional and pre-professional soccer.
The Stadium Project is estimated to cost $12.5 million. Construction on the Stadium Project is expected to begin in early August 2024, with potential completion at the end of February 2025, in time for the start of the spring soccer season in March.
Plan of Finance:
The proceeds of the Bonds (combined with contributions from the City’s financial partners for the MARRC Project) are expected to provide sufficient funding for the MARRC Project and Stadium Project. The Bonds will be structured as lease revenue bonds, payable from lease payments made by the City to the Lancaster Financing Authority from all legally available funds pursuant to a lease agreement involving various City assets. City staff and the financing team are expecting to return to the Council at the June 11 City Council meeting, where the Council will formally approve the legal and disclosure documents related to the Bonds, and the financing team will provide details related to bond market conditions and estimated financial impacts of the financing.
The City requires the expertise and services of various consultants to assist with the Bonds. The City Manager intends to engage the following firms: (1) Stradling Yocca Carlson & Rauth for bond counsel and disclosure counsel services; (2) NHA Advisors LLC for municipal advisor services; and (3) Piper Sandler for underwriter services.
Next Steps:
City staff will work with the financing team to complete the process of issuing the Bonds. The following are some key tentative dates for the schedule of the financing:
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Schedule:
▪Mid/Late May: Credit Review with Rating Agencies
▪June 11: City Council approval of financing documents
▪Late June: Price Bonds (lock interest rates)
▪Mid-July: Closing (funds delivered to City/trustee)
Attachment:
City Council Resolution No. 24 -____
RESOLUTION NO. 24-_____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER, CALIFORNIA, DIRECTING THE CITY MANAGER
TO TAKE ACTIONS NECESSARY TO UNDERTAKE THE
FINANCING OF CERTAIN CAPITAL IMPROVEMENTS
WHEREAS, the City of Lancaster (the “City”) desires to finance the costs of certain capital improvements, including but not limited to (1) the Multi -Agency Regional Resilience Center (the “MARRC Project”) and (2) the conversion of the City’s minor league baseball stadium into a soccer stadium for a new professional soccer team (the “Stadium Project” and, together with the MARCC Project, the “Projects”) through the issuance of lease revenue bonds (the “Bonds”) by the Lancaster Financing Authority (the “Authority”);
WHEREAS, in order to provide for the issuance of the Bonds to finance the Projects, City staff, under the direction of the City Manager and with the assistance of certain attorneys, consultants, and other third parties designated in Section 3 hereof, will proceed to evaluate the feasibility of and take actions needed to proceed with the financing of the Projects through the issuance of the Bonds; WHEREAS, prior to and as a condition to issuance of the Bonds, the City Council and the Board of Directors of the Authority must authorize the issuance of the Bonds at a future public meeting and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANCASTER AS FOLLOWS:
Section 1. That the foregoing recitals are true and correct and constitute a substantive part of this Resolution.
Section 2. The City Manager and his designees are hereby authorized and directed to work with the attorneys, consultants, and third parties designated in Section 3 below to take all actions necessary and appropriate to present the Bonds and related agreements to the City Council and the Board of Directors of the Authority for approval at a future meeting.
Section 3. The City Council hereby approves and appoints Stradling Yocca Carlson & Rauth LLP as Bond and Disclosure Counsel and NHA Advisors, LLC as Municipal Advisor, each to provide such services to the City as may be required to issue the Bonds. The City Council hereby appoints Piper Sandler & Co. to serve as Underwriter in connection with the sale of the Bonds. The City Manager and his designees are hereby authorized to enter into contracts or to sign such other documentation as is necessary or appropriate to evidence such engagements and retain such services in connection with the Bonds.
Section 4. That this Resolution shall be effective immediately upon approval by the City Council and remain in full force unless and until expressly repealed. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
PASSED, APPROVED and ADOPTED this 7th day of May, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
____________________________ ______________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }
CERTIFICATION OF RESOLUTION
CITY OF LANCASTER
I, __________________________, ___________________________ City of Lancaster, CA, do hereby certify that this is a true and correct copy of the original Resolution No. 24-___, for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
___________________________________
STAFF REPORT
City of Lancaster
CC 16
5/7/2024
JC
Date: May 7, 2024
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director - Community Development Jocelyn Swain, Senior Planner
Subject: Authorization for Additional Budget for the Parkway Village Specific Plan Consultants
Recommendation:
Approve Additional Authorization No. 1 to the KGTY Group, Inc. and Aspen Environmental Group to amend the Professional Services Agreements for the preparation of the Parkway Village Specific Plan and associated Environmental Impact Report.
Fiscal Impact:
$164,143.26; sufficient funds are available from grant funds received from the California Department of Housing and Urban Development (HCD) Local Early Action Planning (LEAP) grant. This grant fund is in Account No. 23021000.5656.
Background:
In 2020, City of Lancaster staff started work on the preparation of the Parkway Village Specific Plan to allow for a mixed-use area with a variety of housing types, commercial uses, and community amenities. Aspen Environmental Group was hired at this time to prepare the associated environmental documents including a Programmatic Environmental Impact Report (EIR). In May 2021, the City was awarded a $500,000 under the LEAP grant from HCD for the Parkway Village Project and the City hired KGTY Group, Inc. to prepare the Specific Plan.
Since the start of the project, the scope and size of the plan area has increased necessitating additional planning and environmental efforts. Both KGTY and Aspen have requested budget amendments in the amount of $62,400 and $101,743.26, respectively, to cover the additional work required to prepare the Specific Plan and EIR. The Parkway Village Specific Plan and associated Program EIR are anticipated to be complete and start the hearing process towards the end of summer.
JS/sg
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Attachments:
KGTY Amendment Request
Additional Authorization No. 1 for KGTY
Aspen Amendment Request Additional
Authorization No. 1 for Aspen
AMENDMENT TO CONTRACT
Submitted to: Jocelyn Swain, Senior Planner
City of Lancaster
44933 Fern Avenue
Date: March 22, 2024
Project Name: Lancaster Parkway Village
Project No: 20200708 (102/104/105)
Lancaster, CA 93534 Re: Planning
661-723-6249 Amendment (AMD) No.: 1
[email protected]
Prepared by: KTGY Group, Inc.
Geoff Graney, Associate Principal
17911 Von Karman Ave., Suite 200
Irvine, CA 92614
949.567.3421
[email protected]
In accordance with the Agreement dated September 23, 2021 between Client and KTGY Group, Inc., authorization is requested to proceed with this Amendment described below, over and above the established contract scope of services.
Scope of Services for this Amendment:
The Scope of Work includes the following:
Phase 102 – Landscape Design Addendum #1 (Floor + Associates) $8,400 This Additional Service is being issued for the landscape design team to attend the additional project coordination meetings due to extended project schedule, ongoing revisions based on City and/or neighborhood input to the landscape graphics and written text as required to finalize the specific plan design guidelines document, and final coordination of the document prior to City Council Approval anticipated for the Fall of 2024.
Phase 104 – Planning Submittals and Approvals (KTGY) $42,000 Refined Land Use Plan Updates
KTGY has updated two (2) land use plans per city comments and site constraints beyond the original scope and fee.
Specific Plan Review and Comment
KTGY will continue to support with Specific Plan updates of design guidelines and development standards. Upon completion of screen check document, KTGY will review and comment on screencheck and draft specific plan document.
Illustration
Prepare one (1) conceptual design illustration to convey the overall character, theme, and design of the conceptual land plan. Watercolor format.
Coordination and Meetings
KTGY will coordinate with project team (city, landscape architect, etc.) on an as-needed basis. Project timeline was extended per City of Lancaster.
KTGY has/will attend up to twenty (20) Teams/Zoom project team biweekly meetings over the 10 month period which started in January 2024.
Public Hearings
Planning Commission and City Council
Attend up to two (2) Planning Commission and City Council hearings. The hearing(s) will be held in Lancaster. Geoff Graney will assist with the presentations. KTGY will prepare PowerPoint presentations, graphics and/or handout materials for use at public hearings, as needed. It is assumed that presentation materials will consist of graphics previously prepared in the Specific Plan tasks.
Phase 105 – Specific Plan Addendum #1 (T&B Planning) $12,000 Prepare Draft Specific Plan
The work effort for this task has exceeded original estimates. As a result, additional funding is need to complete preparation of the Draft Specific Plan document.
Meetings, Coordination, Public Hearings
The number of meetings combined with the project coordination efforts have exhausted the budget for this Task. Additional funding is needed to continue involvement and engagement in project meetings and providing assistance as represented in the description for Task 3.1.
Compensation for our services shall be on an hourly T&M basis using our standard hourly rate schedule which is attached as Exhibit “A” with the following estimated maximums, plus reimbursable expenses.
Phase 102 – Landscape Design Addendum #1 (Floor + Associates) $8,400 Phase 104 – Planning Submittals and Approvals (KTGY): $42,000 Phase 105 – Specific Plan Addendum #1 (T&B Planning): $12,000 TOTAL $62,400
KTGY Group, Inc. is authorized to proceed with this Amendment described above upon receipt of this signed amendment. All terms and conditions of the original contract apply to this Amendment.
KTGY Group, Inc. City of Lancaster
Signed:
Name: Geoff Graney
Signed:
Name:
. Title: Associate Principal Title:
Date: March 22, 2024 Date:
Finance: ___
ADDITIONAL AUTHORIZATION NO. 1
FOR CONSULTANT SERVICES
TO: KGTY Group, Inc.
Attn: Geoff Graney, Associate Principal
17911 Von Karman Avenue, Suite 200
Irvine, CA 92614
Under the terms of our Professional Consultant Services Agreement dated October 12, 2021, you are authorized to proceed with the following consulting services:
Project: Parkway Village Specific Plan
Original Authorization: $245,000
Previous Additional Authorization: $0.00
This Authorization: $62,400
Total Not to Exceed: $307,400
Date Required: Immediately
Project Manager: Jocelyn Swain
ACCEPTED:
_____________________________ ______________________
Geoff Graney Date
KGTY Group, Inc.
AUTHORIZED:
_____________________________ _______________________ Jason Caudle Date
City Manager
TASK ORDER NO. 1
Technical Reports and Environmental Impact Report
Parkway Village Specific Plan
Environmental Services
EXHIBIT “A” – SCOPE OF WORK
Aspen Environmental Group – March 22, 2024
March 22, 2024 A-1
In 2020 under a previous task order, A spen began preparing six technical reports and an Environmental Impact Report (EIR) for the Parkway Village Specific Plan proposed by the City of Lancaster. The project was placed on hold in 2020. In February 2024, the City re -initiated the project with the release of the Notice of Preparation of a Draft EIR. Aspen’s current task order includes updating previous information that was compiled for the existing setting and completing the impacts analysis in the technical reports and EIR. As with the previous task order, we have included two of our team subcontractors: Garland and Associates will prepare the Traffic Analysis Technical Report and the Transportation/Traffic EIR section for this project; and Earth Systems will provide support with the hazardous materials records search and with preparation of the Geology and Soils section of the EIR.
Project Summary. The City of Lancaster is proposing to develop the Parkway Village Specific Plan, which would provide direction for development within the plan area over a 20-year period. This plan seeks to provide a mixed -use, walkable community with a variety of commercial, residential, medical, and open space/public uses. The residential uses would include traditional single -family residences, single family residences on smaller lots, townhomes, condominiums and apartment complexes. The project site would be divided into multiple planning areas dedicated to different types of uses. The maximum development allowed by the Parkway Village Specific Plan will be analyzed in the EIR to provide a conservative estimate of the potential impacts from the project.
A portion of the study area was previously reviewed in the EIR prepared for the Amargosa Creek Specific Plan. Aspen has reviewed the Amargosa Creek Specific Plan EIR. The previously certified EIR addressed approximately 150 acres of the proposed approximately 435-acre site. The discussion below presents our approach to preparing the technical reports and program-level EIR.
Task 1 – Project Description
Aspen will review available information provided by the City and the urban design firm to update the Project Description that was previously prepared for the EIR under Aspen’s previous task order. Aspen will work closely with the City to prepare and finalize the Project Description , which is the basis of the EIR analyses. The Project Description will be as comprehensive as possible addressing the overall design concept, potential land uses, design standards, and environmental considerations such as anticipated source of water, utilities, roadway improvements, etc . Another critical component of this task will be to identify different project phases or timelines to c apture in the analysis interim and full build out of the Specific Plan.
The preparation of the Project Description includes one (1) in-person meeting with the City and design team to discuss the plan concept and to discuss the information needed in the Project Description for the CEQA analysis. This meeting will be different than the site visit meeting presented in Task 6 as it will include a more detailed discussion of the project based on Aspen’s review of any additional information provided by the City and the urban design team. Aspen has allowed time for t wo (2) conference call meetings with the design team and City to identify and discuss project-related details. This scope includes the submittal of two data requests to update the Project Description. This scope also includes two (2) revisions of the Project Description based on comments received from the City/urban design team.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-2 March 22, 2024
Task 2 – Technical Reports
Aspen technical staff will continue preparing six (6) technical reports described below, as well as one (1) additional technical report for a total of seven (7) reports, to support the preparation of the EIR. Under the previous task order, existing setting information was compiled, which can be used to complete the technical reports. For some reports, h owever, existing setting data will need to be re- collected and updated, including additional site visits, noise measurements, and records searches . These additional efforts are described in more detail below.
Draft versions of the technical reports will be submitted to the City for review and comment. The technical reports will be submitted via email or placed on OneDrive for download by the City. Our scope includes one (1) revision of the technical reports based on comments from the City.
Each technical author has reviewed the existing 2007 EIR that was prepared for a portion of the plan area and used previous studies (cultural resources report) to develop the approach for each of the technical reports described below.
Air Quality/Greenhouse Gas Technical Report. Under the previous task order, Aspen did not initiate this report before the project was placed on hold; therefore, the scope below is consistent with the scope in the previous task order.
Aspen will prepare a standalone air quality technical study, that includes a comprehensive regulatory setting and existing conditions description for air quality and greenhouse gas (GHG) emissions, along with air pollutant (criteria pollutants and toxic air contaminants) and GHG emissions calculations.
The regulatory setting for air quality and greenhouse gas emissions will be described. The regulatory setting will include a listing of the applicable regulations , summarize the applicable ambient air quality standards, and provide the current attainment status. The affected environment wi ll also be described, including a summary of the existing air quality conditions surrounding the p lan area that will include the most recent representative ambient air quality monitoring data. A dditionally, the plan area’s existing baseline conditions related to air quality will be described.
Air quality emissions, consisting of criteria pollutants, air toxics, and GHG emissions will be calculated based on the Specific Plan’s project design and construction phasing developed in the Project Description.
Additionally, the current baseline emissions for the plan area will be calculated. Anticipated construction and operation emissions will be calculated using appropriate state, federal, or local em issions factors or emissions models; such as
California Air Resources EMFAC2017 or EMFAC2021 and OFFROAD models California Emissions Estimator Model (CalEEMod) model, USEPA’s Compilation of Air Emissions Factors (AP-42), Direct GHG emissions factors from The Climate Registry, and indirect GHG emissions factors from defendable agency references as appropriate (water use, electricity use, etc.).
Activity estimates for project construction (schedule, off -road equipment, vehi cle trips, and material import and waste export quantities), project operation (traffic trips numbers and types, energy use, fuel use, existing and new stationary sources, etc.), and existing baseline conditions (existing traffic, energy use, stationary so urce use estimates) will be determined in consultation with City staff. The emissions estimates, including plan implementation and calculation methodology assumptions, will be provided in both a compiled acrobat document format and the CalEEMod input file and/or spreadsheet file formats.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-3 March 22, 2024
Aquatic Resources Delineation Report (ARDR). An ARDR is a new technical study under this task order.
Aspen will conduct field studies to map aquatic resources and streambeds on the site. During the site visit, Aspen biologists will map all potentially jurisdictional resources and will collect representative site photos.
A formal jurisdictional delineation, including the excavation of soil pits and vegetation samples will be conducted according to U.S. Army Corps of Engineer s (USACE) guidance documents (USACE, 1987 and 2008). Prior to visiting the project site, Aspen biologists will review current and historical aerial imagery of the area and will review other desktop sources such as stream flow data, existing vegetation maps , topographic maps, soil maps, etc.
Following the site visit, Aspen biologists will prepare an ARDR that provides a discussion of jurisdictional features on the project site, presents figures showing the locations of these features, provides representative photos, and summarizes the field indicators observed as well as background regulatory information. The report will also include all field logs, datasheets, and will discuss any difficulties encountered in the field. The report will also include a summary of the area likely to be jurisdictional under Section 404 of the Clean Water Act (33 U.S.C. 1344), Section 10 of the Rivers and Harbors Act (33 U.S.C. 403), or Department of Fish and Wildlife jurisdictional waters of the State (as outlined in Section 1600 - 1616 of the California Fish and Game Code). This information will be presented in an appendix to the EIR and the results summarized in the biological resources section of the EIR.
Biological Resources Technical Report (BRTR). Under the previous task order, Aspen completed field studies to document current site conditions; however, given the time that has passed, Aspen recommends additional field studies to update baseline conditions. Aspen will conduct updated field studies consistent with the previous work that was done for the Parkway Village Specific Plan in 2020 and for the Amargosa Specific Plan, to update the description of baseline biological resources both within the previously studied area and within the new portions o f the site. Field studies will be conducted by experienced biologists with expertise in the resources found in the Antelope Valley. Surveys will encompass the entire 435-acre site and will include the following:
General Reconnaissance Survey and Habitat As sessments. Aspen biologists will conduct a reconnaissance survey and habitat assessment for special-status species known to occur in the region, including desert tortoise, burrowing owl, and Mohave ground squirrel. Focused Spring Botanical Survey. A survey will be conducted to identify listed and other special-status plants on site, following the protocols identified in the California Department of Fish and Wildlife (CDFW) Protocols for Surveying and Evaluating Impacts to Special Status Native Plant Populations and Sensitive Natural Communities (March 2018) and other applicable agency guidance. Western Joshua Tree Inventory. An inventory of western Joshua trees will be completed to ensure compliance with the California Endangered Species Act (CESA) and the Western Joshua Tree Conservation Act (WJTCA). The inventory will cover the entire site and data will be completed according to the methods required by the WJTCA. The results of this inventory will be presented in the BRTR.
Vegetation Mapping. Aspen will u pdate the vegetation mapping done by previous consultants and will map the vegetation in the new portions of the site that have not been previously mapped. Focused Burrowing Owl and Desert Tortoise Surveys. All areas identified as potential habitat will b e surveyed for desert tortoise and burrowing owl by walking 10 - to 15 -meter transects to identify individuals or their sign.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-4 March 22, 2024
Aspen will prepare a BRTR that will present the detailed methodology and results for each field study. The report will describe the regional and local biological setting, identify sensitive resources present or with potential to occur on site, the applicable regulatory setting, an assessment of impacts to biological resources, and avoidance and minimization recommendations. The BRT R will provide the basis for the analysis of biological resources in the EIR.
Cultural Resources Assessment Report. Under the previous task order, Aspen conducted some of the baseline research; however, given the time that has passed, Aspen recommends addi tional field surveys and records searches. Aspen will prepare a Cultural Resources Assessment Report (CRAR) for the proposed Parkway Village Specific Plan. The report will include:
Records Search. Aspen will consult the South Central Coastal Information Center (SCCIC) at California State University, Fullerton to conduct a records search for cultural resources. The search will cover the approximately 435-acre plan area and a one-quarter mile radius from the plan area boundary. Also, Aspen will contact the Vertebrate Paleontology section of the Western Science Center to complete a records search and access the online database of the University of California, Museum of Paleontology to determine the paleontological sensitivity of the plan area. Field Survey. Aspen archeologists will conduct a pedestrian survey of the proposed Specific Plan properties and will conduct the survey at a maximum survey transect interval of 30 meters, as site conditions permit. Another field survey is necessary because the previous 2007 survey was completed more than 12 years ago and only covered a portion (30%) of the plan area.
Aspen will prepare a C RAR that will include an environmental, cultural, and historic setting section, a description of the results of the literature and rec ord search for both cultural and paleontological resources, a summary the results of the Senate Bill (SB) 18 or Assembly Bill (AB) 52 consultations (assumed to be conducted by the City), results of the archaeological survey, conclusions, recommendations, a nd rationale for further study, if necessary. When the report has been finalized, Aspen will provide an electronic copy of the report to the SCCIC, as required.
Our scope does not include support with SB 18 or AB 52 because on other City projects we have completed the City handled consultation with the tribes and did not request any support. However, Aspen archeologists have experience with tribal consultation and can provide support if needed and added to the scope and cost. Our scope also anticipate s finding resources and therefore does include costs for preparing up to three sets of Department of Parks and Recreation (DPR) 523 forms. If the survey does find more than three resources, then we will need to amend the scope and cost for preparing archeologic al site records and assessing site for historical significance. Aspen assumes that no built environment resources will be identified.
Hazardous Materials Records Search. Under the previous task order, w ith support from Earth Systems, the Aspen Team conducted a review of available information and databases in April 2020 . Given the amount of time that has passed since the previous records search, Aspen recommends conducting an updated records search. Under this current task order, a new records search will be conducted. The records search will include an environmental database report as well as a summary of the results of the report. This information will be presented in an appendix to the EIR and the results summarized in the Hazards and Hazardous Materials section of the EIR.
Noise Technical Report. Under the previous task order, Aspen did not initiate this report before the project was placed on hold; therefore, the scope below is consistent with the scope in the previous task order.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-5 March 22, 2024
The Noise Technical Report will be designed to provide information necessary to complete the Noise and Vibration EIR section for the Specific Plan . The purpose of this study is to provide necessary complex details and quantifications within the study, allowing for the CEQA doc ument to present its findings in more simplified terms for public review. The technical report will include the following specific subjects and analysis:
Environmental Setting
- Description of existing sensitive receptors along the Specific Plan boundary and key roadways accessing the boundary (Sierra Highway, 10th Street West, West Avenue L, West Avenue K-8, West Avenue K-4, West Avenue K).
- Aspen did not complete any noise measurements under the previous task order. Therefore, noise measurements will be required at the project site under this current task order. Baseline daytime noise data will be collected (between the hours of 8:00 a.m. and 5:00 p.m.) for 15 minutes at five (5) locations, assumed to be the nearest noise- sensitive property lines along the Sp ecific Plan boundary and key roadways accessing the boundary, as well as one (1) measurement within the Specific Plan boundary. Based on the revised CEQA Appendix G checklist questions (as amended December 2018 ), 24 -hour ambient noise measurements are not considered necessary as compliance with applicable plans and policies is now the core requirement. An analysis of project increase over ambient noise levels is no longer included within CEQA Appendix G checklist questions.
Regulatory Setting
- A description of the applicable City of Lancaster Municipal Code (Title 8, Health and Safety, Chapter 8.24, Noise Regulations) will be presented, as well as including all applicable policies from the City of Lancaster 2030 General Plan (Plan for Public Health and Safety, Noise). This will include applicable thresholds for existing and proposed land use designations of the Specific Plan area. - A list of potentially relevant CEQA significance thresholds. Construction Noise Analysis
- A description of the expected noise levels generated by construction equipment use at 50 feet from the source.
- An analysis of anticipated construction noise and compliance with applicable City of Lancaster Municipal Code Chapter 8.24 (Noise Regulations) and General Plan policies at affected receptors. - An analysis of anticipated temporary construction noise and assessment of whether this potential noise would be excessive.
- Draft mitigation measures and/or best management practices, as necessary, to reduce temporary construction noise and vibration.
Operation Noise Analysis
- A description of the expected noise levels generated by land use type, including the new transportation network within the Specific Plan boundary. - Utilizing the California Department of Transportation ( Caltrans) Traffic Noise Mod el, estimate traffic noise under existing conditions and “with -project” conditions for key roadways accessing the boundary (Sierra Highway, 10th Street West, West Avenue L, West Avenue K-8, West Avenue K-4, West Avenue K).
- An analysis of anticipated operation noise (land use and traffic) and compliance with applicable City of Lancaster Municipal Code Chapter 8.24 (Noise Regulations) and General Plan policies at affected receptors.
- Draft mitigation measures necessary to reduce excessive noise.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-6 March 22, 2024
Traffic Analysis Technical Report. Garland and Associates collected traffic data under the previous task order; however, given the amount of time that has passed, Aspen recommends collecting current traffic counts at the project site. In addition, the previous sco pe did not include vehicle miles traveled (VMT) analysis, since that was not required in 2019/2020 when the previous scope was prepared. This current scope has been updated to comply with the most recent traffic analysis requirements under CEQA.
An analysis will be conducted to evaluate the traffic/circulation impacts of the proposed S pecific Plan development on traffic conditions in the vicinity of the project site. The analysis will focus on the transportation issue areas of the CEQA environmental checklist, which includes an evaluation of the project’s impacts on 1) the circulation system, including transit, roadway, bicycle, and pedestrian facilities, 2) VMT, 3) safety hazards, and 4) emergency access.
The proposed project would result in an increase in traffic volumes on the roadways in the project vicinity because of site-generated vehicular traffic. The traffic analysis will evaluate the potential impacts of the project generated traffic during AM and PM peak hours to evaluate the ability of the roadway network to accommodate the projected traffic volumes and identify any required roadway improvements.
Garland and Associates will prepare a traffic report that addresses the following:
The roadways that provide access to the plan area will be inventoried with regard to such physical conditions as number of lanes, types of traffic control devices, sidewalk/shoulder locations, and driveway locations. Garland will evaluate nine roadways and study 12 intersections in the report. The report will present quantitative information on baseline traffic conditions on the roadways in the study area.
Traffic volumes will be identified from the Trip Generation Manual and the anticipated interaction and internal trips between the plan’s on-site land uses. Traffic volumes will be obtained from the City of Lancaster, County of Los Angeles, and Caltrans (where available) and supplemented with new traffic counts where necessary.
Existing traffic conditions and the traffic conditions for the anticipated year of project buildout will be evaluated. Future baseline traffic volumes will be forecasted by considering area-wide growth and the cumulative volumes of traffic that would be generated by other proposed projects in the plan area.
The impact analysis will include a before-and-after analysis of traffic conditions on the roadways and intersections in the site vicinity (i.e., traffic conditions with and without plan implementation). Potential measures will be identified to mitigate the potential significant traffic impacts and to ensure that the roadway network could accommodate the projected traffic volumes.
Task 3 – Screencheck Draft EIR
Under the previous task order, Aspen had begun preparing an EIR template and including information on the environmental and regulatory setting in the template; for this current task order, Aspen will update that template to include the most current CEQA issue areas, as well as revisit the environmental and regulatory setting to ensure that this information is the most current.
This task will include the preparation of two Screencheck Draft EIRs for review and comment by the City.
Aspen will prepare the S creencheck Draft EIR consistent with the approved outline discussed with the City. Aspen will prepare a concise but comprehensive, accurate, and objective environmental document that fully complies with CEQA requirements and that addresses all mandatory sections. The methodology Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-7 March 22, 2024
and criteria used for determining impacts will be clearly described in eac h technical section of the EIR, including any assumptions, models, or modeling techniques used in the analysis.
Project Description
The Project Description (or Specific Plan Description) will be developed in Task 1. It is identified here because it is a key component of the environmental analysis. The Project Description will be developed to discuss all phases of the plan implementation including proposed design and performance standards for future development and related discretionary approvals in the EIR (to address the “whole of the action,” as required in CEQA). The Specific Plan description should include:
Details regarding plan implementation including anticipated development phases, any plan area improvements that will be made by the City, desired design features, desired future land uses, and proposed development standards;
Specific Plan objectives;
A listing of all plan area parcels including the Assessor’s Parcel Numbers, location, size, and current land use; and
Maps and tables to concisely convey plan details.
Alternatives
This task was not initiated under the previous task order before the project was placed on hold. Aspen will work with the City and design team (as applicable and at direction of the City) to identify a range of reasonable and feasible alternatives early in the EIR process, including any alternatives identified during scoping. The alternatives will be evaluated regarding their ability to meet the objectives identified in the Project Description, and those that meet CEQA requirements for feasibility and ability to meet Specific Plan objectives will be carried forward for analysis under each issue area.
Issue-Area Analysis
Aspen will prepare an analysis of potential environmental impacts from implementation of the Specific Plan. The following issue areas will be addressed in the EIR:
• Aesthetics
• Air Quality and Greenhouse Gas Emissions
• Biological Resources
• Cultural, Paleontological and Tribal
Resources
• Energy
• Geology and Soils
• Hazards and Hazardous Materials
• Hydrology and Water Quality
• Land Use and Planning
• Noise
• Population and Housing
• Public Services and Recreation
• Transportation
• Utilities and Service Systems
The analysis will include the following content for each issue area:
Environmental Setting to identify key characteristics of the plan area for the specific issue area. Regulatory Setting to identify applicable local, state, and federal regulations. Environmental Impacts and Mitigation Measures to identify potential impacts that could result from plan implementation and recommend measures to reduce these potential impacts that would be Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE PROJECT
A-8 March 22, 2024
applied to future physical developments. The issue-specific thresholds of significance will be identified and discussed in this section.
Cumulative Impact Analysis to address potential “cumulative” environmental impacts that could result from plan implementation in combination with other proposed projects or plans. Level of Significance after Mitigation to address any remaining residual impact, if any, and make a determination of significance for each issue based on the thresholds of significance.
Aspen will clearly describe the methodology and criteria used to determine impacts in each technical section of the EIR, including any as sumptions, models, or modeling techniques used in the analysis. For the issue areas where a technical report was prepared, the information in the technical reports will form the basis of the analyses. For those issues without a technical report, Aspen will conduct literature searches of resource-specific issues and review of available documents for other projects or plans near the plan area to gather baseline information. Some of baseline information will also come from the site visits conducted at the start of this task order and information gained during preparation of the technical reports. All site visits and references will be documented and identified in the EIR.
For e ach significant impact identified in our analysis, the impacts and mitigation measure s will be numbered for easy reference. The effectiveness and feasibility of mitigation measures will be discussed, and the level of significance after mitigation will be identified. The impact assessment will consider direct, indirect, and cumulative impacts based on the agreed-upon significance criteria. Cumulative impacts will take into consideration foreseeable development within a 1- to 2-mile radius of the plan area depending on the specific issue area.
Aspen will prepare the First Screencheck Draft EIR and submit to the City for review and comment. Aspen will submit one (1) electronic copy with appendices. Based on comments received from the City, Aspen will revise the First Screencheck Draft EIR. The Second Screencheck Draft EIR will be submitted to the City for review and comment. Aspen will revise this version of the document consis tent with the comments received from the City. Aspen will submit one (1) electronic copy (Word and Adobe) and one (1) hard copy.
Aspen will only submit the appendices with this Second Screencheck Draft EIR if they have changed. The costs assume that only minimal changes will be needed to the appendices.
Task 4 – Draft EIR
This task was not initiated under the previous task order before the project was placed on hold. Task 4 includes the publication of the Draft EIR once approved by the City for publication. Based on the review and approval of the Second Screencheck Draft EIR by the City and the approval to move forward with publication of the draft document, Aspen will publish the Draft EIR and provide two (2) hard copies of the draft with the appendices on CD to the City. The City will distribute the documents and release the Notice of Completion on this task order.
Task 5 – Final EIR
This task was not initiated under the previous task order before the project was placed on hold. Aspen will prepare a Screencheck Final EIR or Response Document that includes the Response to Comments and identifies any changes to the Draft EIR consistent with the format used in previous EIRs prepared for the City. Aspen will submit the Screencheck Final for review and comment by the City. Aspen will revise the Screencheck Final EIR based on comments received. Aspen will work closely with the Ci ty in responding to comments and may need to work with the City on finalizing responses to specific questions. Aspen will provide two (2) hard copies of the Final EIR with the appendices on CD to the City Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE PROJECT
A-9 March 22, 2024
Task 6 – Meetings and Hearings
Kick-off Meeting. Although a kick-off meeting was held under the previous task order, Aspen anticipates that an additional kick-off meeting will be required under this current task order to discuss the updated Project Description. Aspen will schedule a kick-off meeting with City Staff to discuss Specific Plan details, communication protocols, schedule, and overall expectations. The kick -off m eeting will be scheduled within the first 2 weeks of receiving the notice to proceed. Aspen will document the results of this meeting in brief notes provided by email to the City.
Site Visit. Although a site visit was conducted under the previous task order, because of the time that has passed, Aspen recommends conducting an additional site visit to document any changes in the environmental setting. Under this current task order, Aspen will conduct a site visit following the kick-off meeting. The site visit will provide Aspen an opportunity to gather site -specific information in the field such as sensitive receptor and existing land uses for the Project Description . Our scope includes the participation of two (2) team members at the site visit.
In-person and Conference Call Meetings. This current task order includes additional in -person and conference call meetings throughout the duration of the project. This task includes participation in one (1) in-person meeting with the City and the design team to discuss the Specific Plan. These meetings will be used to discuss plan-related issues and will be planned with a specific agenda prior to scheduling th is meeting. In addition, the scope includes 6 hours of time (or 12 30 -minute calls) for conference call meetings with the City regarding the Specific Plan EIR and during the active periods of the EIR preparation.
Public Hearings. The Aspen Project Manager will participate in one (1) Planning Commission hearing and one (1) Board of Supervisors hearing. The Aspen Project Manager can present fin dings of the EIR and respond to questions from decisionmakers or the public at both hearings.
Tasks and Products
TASK PRODUCT QUANTITY AND DESCRIPTION
Task 1 – Project Description Project Description Electronic copy by email Task 2 – Technical Reports Air Quality/GHG
Aquatic Resources Delineation
Biological Resources
Cultural Resources
Hazardous Materials Record Search
Noise
Transportation/Traffic
Electronic copy by email
Depending on file size, may provide via
OneDrive folder for downloading
Task 3 – Screencheck Draft EIR
First Screencheck Draft EIR 1 electronic copy (Word and Adobe) and 1 hard copy (including appendices)
Second Screencheck Draft EIR 1 electronic copy (Word and Adobe) and 1 hard copy (appendices only if changed)
Task 4 – Draft EIR Public Review Draft EIR 2 hard copies (appendices on CD)
Task 5 – Final EIR
Screencheck Final EIR
(Response Document)
1 electronic copy (Word and Adobe)
includes responses to comments and
mitigation monitoring program
Final EIR 2 hard copies (appendices on CD)
TASK ORDER NO. 1
Technical Studies and Environmental Impact Report
Parkway Village Specific Plan
Environmental Services
EXHIBIT “C” – FEE SCHEDULE
Aspen Environmental Group – March 22, 2024
March 22, 2024 C-1
The table below presents our cost estimate for preparation of eight technical reports and the Parkway Village Specific Plan EIR. The cost is based the contract hourly rates and staff identified in our authorized contract. Our estimate to complete the technical studies and EIR is $256,767.
The table below includes the task breakdown for the Exhibit “A” Scope of Work.
Scope and Cost Assumptions
Based on recent City project, Aspen has not included distribution of the Specific Plan EIR. However, Aspen has completed distribution for other projects and can do so here if desired by the City. Consistent with previous project s, Aspen has not included t he distribution or publication of CEQA notices. However, Aspen can add preparation and distribution of CEQA notices to scope/cost if desired by the City. Our scope assumes:
− City will prepare and distribute Notice of Preparation (NOP), Notice of Completion (NOC) form and NOP to State Clearinghouse, and post notices with the County Clerk’s office. − City will prepare and distribute Notice of Availability of Draft EIR (NOA) , NOC to State Clearinghouse with EIR, and post notices with the County Clerk’s office. − City will prepare and file Notice of Determination with the State Clearinghouse and post notice with the County Clerk’s office.
Consistent with prior project, scope and cost do not include payment of filing fee to the California Department of Fish and Wildlife (CDFW: $4,051.25).
Task 1 Task 2 Task 3 Task 4 Task 5 Task 6
Aspen Environmental Group Labor $9,520 $110,875 $54,640 $9,540 $10,220 $15,380 $210,175 Aspen Non-Labor Costs $303 $8,202 $495 $495 $495 $1,238 $11,227 Subtotal Aspen Cost $9,823 $119,077 $55,135 $10,035 $10,715 $16,618 $221,402 Subcontractors
Earth Systems $1,734 $6,470 $1,001 $1,300 $10,505
Garland & Associates $19,800 $2,420 $2,640 $24,860
Subtotal Subcontractor Cost $21,534 $8,890 $1,001 $3,940 $35,365 TOTAL Cost $9,823 $140,610 $64,025 $11,036 $14,655 $16,618 $256,767 Labor Hours by Task
Aspen Environmental Group 58 756 350 60 60 90 1,374
Earth Systems 8 34 6 6 54
Garland & Associates 140 20 16 176
TOTAL LABOR HOURS 58 904 404 66 82 90 1,604
Screencheck
Draft
Technical
Reports
Project
DescriptionCOST BY TASK
Cost of Services
Total
Tasks 1-6
Kick-Off &
MeetingsFinal EIRDraft EIR
Exhibit “C” Fee Schedule - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
C-2 March 22, 2024
Aesthetics
The City’s design team will provide elevations and/or site drawings showing proposed elevations of anticipated structures and design features or elements for use in the visual resources/aesthetics analysis of the EIR.
Aquatic Resources
The results of the field delineation will be compiled into one comprehensive Aquatic Resources Delineation Report. The report will address potential jurisdictional resources on the site, which is expected to include the California Department of Fish and Wildlife and Regional Water Quality Control Board.
The field delineation survey described under aquatic resources would be completed by a senior biologist during one (1) 8-hour field day.
Biological Resources
The results of the field stu dies will be compiled into one Biological Technical Report, and standalone reports for each type of survey will not be prepared.
Mohave ground squirrel (MGS) trapping was conducted in 2005 in areas of suitable habitat in the Amargosa Specific Plan area with negative results. This scope of work includes a habitat assessment for MGS. Protocol-level trapping surveys may be recommended depending on the results on the habitat assessment and would require coordination with CDFW. Protocol surveys are not included in this scope of work, but Aspen has an MGS -permitted biologist on staff who can complete these surveys under a separate authorization, if required.
The focused biological field surveys described under the Biological Resources Technical Report would be completed by a team of three (3) biologists over three (3) 10-hour field days. The western Joshua tree inventory would be completed by a team of two (2) biologists over two (2) 10- hour field days.
Field surveys are recommended to be completed in or around May 2024 to adhere to applicable survey protocols established by resources agencies (i.e. CDFW).
Cultural Resources
Scope assumes that up to three (3) DPR 523 forms will be prepared.
Tribal Cultural Resources
Consistent with other projects completed for the City, our scope assumes that the City will handle all consultation with the Native American Tribes (SB 18 and AB 52). Aspen has in-house archeologists that can support the City with this effort if desired by the City and with a scope and cost amendment. City will provide information on the notices and the results of the Native American consultation to include in the Tribal Resources section of the EIR.
Hydrology/Water Quality
It is assumed that drainage engineering information for the pr oposed development, including the disposition of Amargosa Creek flows, will be provided by the City of Lancaster.
ADDITIONAL AUTHORIZATION NO. 1
FOR CONSULTANT SERVICES
TO: Aspen Environmental Group
Attn: Hamid Rastegar
17911 Von Karman Avenue, Suite 200
Irvine, CA 92614
Under the terms of our Professional Consultant Services Agreement: Category 4 – Environmental Services dated December 7, 2018, you are authorized to proceed with the following consulting services:
Project: Parkway Village Master Plan
Original Authorization: $246,716
Previous Additional Authorization: $0.00
This Authorization: $101,743.26
Total Not to Exceed: $348,459.26
Date Required: Immediately
Project Manager: Jocelyn Swain
ACCEPTED:
_____________________________ ______________________
Hamid Rastegar Date
Aspen Environmental Group
AUTHORIZED:
_____________________________ _______________________ Jason Caudle Date
City Manager
STAFF REPORT
City of Lancaster
CC 17
5/7/2024
JC
Date: May 7, 2024
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director – Community Development Jocelyn Swain, Senior Planner – Community Development
Subject: Authorization for Additional Budget for Aspen Environmental Group for the Parkway Village Specific Plan Environmental Impact
Recommendation:
Approve Additional Authorization No. 1 for the Aspen Environmental Group to amend the Professional Services Agreement for the preparation of the Parkway Village Specific Plan Environmental Impact Report.
Fiscal Impact:
$101,743.26; sufficient funds are available from grant funds received from the California Department of Housing and Urban Development (HCD) Local Early Action Planning (LEAP) grant. This grant fund is in Account No. 23021000.5656.
Background:
Since the start of the project, the scope and size of the plan area has increased necessitating additional planning and environmental efforts. Aspen Environmental Group has requested a budget amendment in the amount of $101,743.26, to cover the additional work required to prepare the EIR. The Parkway Village Specific Plan and associated Program EIR are anticipated to be complete and start the hearing process towards the end of summer.
JS/sg
Attachments:
Aspen Amendment Request
Additional Authorization No. 1 for Aspen
TASK ORDER NO. 1
Technical Reports and Environmental Impact Report
Parkway Village Specific Plan
Environmental Services
EXHIBIT “A” – SCOPE OF WORK
Aspen Environmental Group – March 22, 2024
March 22, 2024 A-1
In 2020 under a previous task order, A spen began preparing six technical reports and an Environmental Impact Report (EIR) for the Parkway Village Specific Plan proposed by the City of Lancaster. The project was placed on hold in 2020. In February 2024, the City re -initiated the project with the release of the Notice of Preparation of a Draft EIR. Aspen’s current task order includes updating previous information that was compiled for the existing setting and completing the impacts analysis in the technical reports and EIR. As with the previous task order, we have included two of our team subcontractors: Garland and Associates will prepare the Traffic Analysis Technical Report and the Transportation/Traffic EIR section for this project; and Earth Systems will provide support with the hazardous materials records search and with preparation of the Geology and Soils section of the EIR.
Project Summary. The City of Lancaster is proposing to develop the Parkway Village Specific Plan, which would provide direction for development within the plan area over a 20-year period. This plan seeks to provide a mixed -use, walkable community with a variety of commercial, residential, medical, and open space/public uses. The residential uses would include traditional single -family residences, single family residences on smaller lots, townhomes, condominiums and apartment complexes. The project site would be divided into multiple planning areas dedicated to different types of uses. The maximum development allowed by the Parkway Village Specific Plan will be analyzed in the EIR to provide a conservative estimate of the potential impacts from the project.
A portion of the study area was previously reviewed in the EIR prepared for the Amargosa Creek Specific Plan. Aspen has reviewed the Amargosa Creek Specific Plan EIR. The previously certified EIR addressed approximately 150 acres of the proposed approximately 435-acre site. The discussion below presents our approach to preparing the technical reports and program-level EIR.
Task 1 – Project Description
Aspen will review available information provided by the City and the urban design firm to update the Project Description that was previously prepared for the EIR under Aspen’s previous task order. Aspen will work closely with the City to prepare and finalize the Project Description , which is the basis of the EIR analyses. The Project Description will be as comprehensive as possible addressing the overall design concept, potential land uses, design standards, and environmental considerations such as anticipated source of water, utilities, roadway improvements, etc . Another critical component of this task will be to identify different project phases or timelines to c apture in the analysis interim and full build out of the Specific Plan.
The preparation of the Project Description includes one (1) in-person meeting with the City and design team to discuss the plan concept and to discuss the information needed in the Project Description for the CEQA analysis. This meeting will be different than the site visit meeting presented in Task 6 as it will include a more detailed discussion of the project based on Aspen’s review of any additional information provided by the City and the urban design team. Aspen has allowed time for t wo (2) conference call meetings with the design team and City to identify and discuss project-related details. This scope includes the submittal of two data requests to update the Project Description. This scope also includes two (2) revisions of the Project Description based on comments received from the City/urban design team.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-2 March 22, 2024
Task 2 – Technical Reports
Aspen technical staff will continue preparing six (6) technical reports described below, as well as one (1) additional technical report for a total of seven (7) reports, to support the preparation of the EIR. Under the previous task order, existing setting information was compiled, which can be used to complete the technical reports. For some reports, h owever, existing setting data will need to be re- collected and updated, including additional site visits, noise measurements, and records searches . These additional efforts are described in more detail below.
Draft versions of the technical reports will be submitted to the City for review and comment. The technical reports will be submitted via email or placed on OneDrive for download by the City. Our scope includes one (1) revision of the technical reports based on comments from the City.
Each technical author has reviewed the existing 2007 EIR that was prepared for a portion of the plan area and used previous studies (cultural resources report) to develop the approach for each of the technical reports described below.
Air Quality/Greenhouse Gas Technical Report. Under the previous task order, Aspen did not initiate this report before the project was placed on hold; therefore, the scope below is consistent with the scope in the previous task order.
Aspen will prepare a standalone air quality technical study, that includes a comprehensive regulatory setting and existing conditions description for air quality and greenhouse gas (GHG) emissions, along with air pollutant (criteria pollutants and toxic air contaminants) and GHG emissions calculations.
The regulatory setting for air quality and greenhouse gas emissions will be described. The regulatory setting will include a listing of the applicable regulations , summarize the applicable ambient air quality standards, and provide the current attainment status. The affected environment wi ll also be described, including a summary of the existing air quality conditions surrounding the p lan area that will include the most recent representative ambient air quality monitoring data. A dditionally, the plan area’s existing baseline conditions related to air quality will be described.
Air quality emissions, consisting of criteria pollutants, air toxics, and GHG emissions will be calculated based on the Specific Plan’s project design and construction phasing developed in the Project Description.
Additionally, the current baseline emissions for the plan area will be calculated. Anticipated construction and operation emissions will be calculated using appropriate state, federal, or local em issions factors or emissions models; such as
California Air Resources EMFAC2017 or EMFAC2021 and OFFROAD models California Emissions Estimator Model (CalEEMod) model, USEPA’s Compilation of Air Emissions Factors (AP-42), Direct GHG emissions factors from The Climate Registry, and indirect GHG emissions factors from defendable agency references as appropriate (water use, electricity use, etc.).
Activity estimates for project construction (schedule, off -road equipment, vehi cle trips, and material import and waste export quantities), project operation (traffic trips numbers and types, energy use, fuel use, existing and new stationary sources, etc.), and existing baseline conditions (existing traffic, energy use, stationary so urce use estimates) will be determined in consultation with City staff. The emissions estimates, including plan implementation and calculation methodology assumptions, will be provided in both a compiled acrobat document format and the CalEEMod input file and/or spreadsheet file formats.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-3 March 22, 2024
Aquatic Resources Delineation Report (ARDR). An ARDR is a new technical study under this task order.
Aspen will conduct field studies to map aquatic resources and streambeds on the site. During the site visit, Aspen biologists will map all potentially jurisdictional resources and will collect representative site photos.
A formal jurisdictional delineation, including the excavation of soil pits and vegetation samples will be conducted according to U.S. Army Corps of Engineer s (USACE) guidance documents (USACE, 1987 and 2008). Prior to visiting the project site, Aspen biologists will review current and historical aerial imagery of the area and will review other desktop sources such as stream flow data, existing vegetation maps , topographic maps, soil maps, etc.
Following the site visit, Aspen biologists will prepare an ARDR that provides a discussion of jurisdictional features on the project site, presents figures showing the locations of these features, provides representative photos, and summarizes the field indicators observed as well as background regulatory information. The report will also include all field logs, datasheets, and will discuss any difficulties encountered in the field. The report will also include a summary of the area likely to be jurisdictional under Section 404 of the Clean Water Act (33 U.S.C. 1344), Section 10 of the Rivers and Harbors Act (33 U.S.C. 403), or Department of Fish and Wildlife jurisdictional waters of the State (as outlined in Section 1600 - 1616 of the California Fish and Game Code). This information will be presented in an appendix to the EIR and the results summarized in the biological resources section of the EIR.
Biological Resources Technical Report (BRTR). Under the previous task order, Aspen completed field studies to document current site conditions; however, given the time that has passed, Aspen recommends additional field studies to update baseline conditions. Aspen will conduct updated field studies consistent with the previous work that was done for the Parkway Village Specific Plan in 2020 and for the Amargosa Specific Plan, to update the description of baseline biological resources both within the previously studied area and within the new portions o f the site. Field studies will be conducted by experienced biologists with expertise in the resources found in the Antelope Valley. Surveys will encompass the entire 435-acre site and will include the following:
General Reconnaissance Survey and Habitat As sessments. Aspen biologists will conduct a reconnaissance survey and habitat assessment for special-status species known to occur in the region, including desert tortoise, burrowing owl, and Mohave ground squirrel. Focused Spring Botanical Survey. A survey will be conducted to identify listed and other special-status plants on site, following the protocols identified in the California Department of Fish and Wildlife (CDFW) Protocols for Surveying and Evaluating Impacts to Special Status Native Plant Populations and Sensitive Natural Communities (March 2018) and other applicable agency guidance. Western Joshua Tree Inventory. An inventory of western Joshua trees will be completed to ensure compliance with the California Endangered Species Act (CESA) and the Western Joshua Tree Conservation Act (WJTCA). The inventory will cover the entire site and data will be completed according to the methods required by the WJTCA. The results of this inventory will be presented in the BRTR.
Vegetation Mapping. Aspen will u pdate the vegetation mapping done by previous consultants and will map the vegetation in the new portions of the site that have not been previously mapped. Focused Burrowing Owl and Desert Tortoise Surveys. All areas identified as potential habitat will b e surveyed for desert tortoise and burrowing owl by walking 10 - to 15 -meter transects to identify individuals or their sign.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-4 March 22, 2024
Aspen will prepare a BRTR that will present the detailed methodology and results for each field study. The report will describe the regional and local biological setting, identify sensitive resources present or with potential to occur on site, the applicable regulatory setting, an assessment of impacts to biological resources, and avoidance and minimization recommendations. The BRT R will provide the basis for the analysis of biological resources in the EIR.
Cultural Resources Assessment Report. Under the previous task order, Aspen conducted some of the baseline research; however, given the time that has passed, Aspen recommends addi tional field surveys and records searches. Aspen will prepare a Cultural Resources Assessment Report (CRAR) for the proposed Parkway Village Specific Plan. The report will include:
Records Search. Aspen will consult the South Central Coastal Information Center (SCCIC) at California State University, Fullerton to conduct a records search for cultural resources. The search will cover the approximately 435-acre plan area and a one-quarter mile radius from the plan area boundary. Also, Aspen will contact the Vertebrate Paleontology section of the Western Science Center to complete a records search and access the online database of the University of California, Museum of Paleontology to determine the paleontological sensitivity of the plan area. Field Survey. Aspen archeologists will conduct a pedestrian survey of the proposed Specific Plan properties and will conduct the survey at a maximum survey transect interval of 30 meters, as site conditions permit. Another field survey is necessary because the previous 2007 survey was completed more than 12 years ago and only covered a portion (30%) of the plan area.
Aspen will prepare a C RAR that will include an environmental, cultural, and historic setting section, a description of the results of the literature and rec ord search for both cultural and paleontological resources, a summary the results of the Senate Bill (SB) 18 or Assembly Bill (AB) 52 consultations (assumed to be conducted by the City), results of the archaeological survey, conclusions, recommendations, a nd rationale for further study, if necessary. When the report has been finalized, Aspen will provide an electronic copy of the report to the SCCIC, as required.
Our scope does not include support with SB 18 or AB 52 because on other City projects we have completed the City handled consultation with the tribes and did not request any support. However, Aspen archeologists have experience with tribal consultation and can provide support if needed and added to the scope and cost. Our scope also anticipate s finding resources and therefore does include costs for preparing up to three sets of Department of Parks and Recreation (DPR) 523 forms. If the survey does find more than three resources, then we will need to amend the scope and cost for preparing archeologic al site records and assessing site for historical significance. Aspen assumes that no built environment resources will be identified.
Hazardous Materials Records Search. Under the previous task order, w ith support from Earth Systems, the Aspen Team conducted a review of available information and databases in April 2020 . Given the amount of time that has passed since the previous records search, Aspen recommends conducting an updated records search. Under this current task order, a new records search will be conducted. The records search will include an environmental database report as well as a summary of the results of the report. This information will be presented in an appendix to the EIR and the results summarized in the Hazards and Hazardous Materials section of the EIR.
Noise Technical Report. Under the previous task order, Aspen did not initiate this report before the project was placed on hold; therefore, the scope below is consistent with the scope in the previous task order.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-5 March 22, 2024
The Noise Technical Report will be designed to provide information necessary to complete the Noise and Vibration EIR section for the Specific Plan . The purpose of this study is to provide necessary complex details and quantifications within the study, allowing for the CEQA doc ument to present its findings in more simplified terms for public review. The technical report will include the following specific subjects and analysis:
Environmental Setting
- Description of existing sensitive receptors along the Specific Plan boundary and key roadways accessing the boundary (Sierra Highway, 10th Street West, West Avenue L, West Avenue K-8, West Avenue K-4, West Avenue K).
- Aspen did not complete any noise measurements under the previous task order. Therefore, noise measurements will be required at the project site under this current task order. Baseline daytime noise data will be collected (between the hours of 8:00 a.m. and 5:00 p.m.) for 15 minutes at five (5) locations, assumed to be the nearest noise- sensitive property lines along the Sp ecific Plan boundary and key roadways accessing the boundary, as well as one (1) measurement within the Specific Plan boundary. Based on the revised CEQA Appendix G checklist questions (as amended December 2018 ), 24 -hour ambient noise measurements are not considered necessary as compliance with applicable plans and policies is now the core requirement. An analysis of project increase over ambient noise levels is no longer included within CEQA Appendix G checklist questions.
Regulatory Setting
- A description of the applicable City of Lancaster Municipal Code (Title 8, Health and Safety, Chapter 8.24, Noise Regulations) will be presented, as well as including all applicable policies from the City of Lancaster 2030 General Plan (Plan for Public Health and Safety, Noise). This will include applicable thresholds for existing and proposed land use designations of the Specific Plan area. - A list of potentially relevant CEQA significance thresholds. Construction Noise Analysis
- A description of the expected noise levels generated by construction equipment use at 50 feet from the source.
- An analysis of anticipated construction noise and compliance with applicable City of Lancaster Municipal Code Chapter 8.24 (Noise Regulations) and General Plan policies at affected receptors. - An analysis of anticipated temporary construction noise and assessment of whether this potential noise would be excessive.
- Draft mitigation measures and/or best management practices, as necessary, to reduce temporary construction noise and vibration.
Operation Noise Analysis
- A description of the expected noise levels generated by land use type, including the new transportation network within the Specific Plan boundary. - Utilizing the California Department of Transportation ( Caltrans) Traffic Noise Mod el, estimate traffic noise under existing conditions and “with -project” conditions for key roadways accessing the boundary (Sierra Highway, 10th Street West, West Avenue L, West Avenue K-8, West Avenue K-4, West Avenue K).
- An analysis of anticipated operation noise (land use and traffic) and compliance with applicable City of Lancaster Municipal Code Chapter 8.24 (Noise Regulations) and General Plan policies at affected receptors.
- Draft mitigation measures necessary to reduce excessive noise.
Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-6 March 22, 2024
Traffic Analysis Technical Report. Garland and Associates collected traffic data under the previous task order; however, given the amount of time that has passed, Aspen recommends collecting current traffic counts at the project site. In addition, the previous sco pe did not include vehicle miles traveled (VMT) analysis, since that was not required in 2019/2020 when the previous scope was prepared. This current scope has been updated to comply with the most recent traffic analysis requirements under CEQA.
An analysis will be conducted to evaluate the traffic/circulation impacts of the proposed S pecific Plan development on traffic conditions in the vicinity of the project site. The analysis will focus on the transportation issue areas of the CEQA environmental checklist, which includes an evaluation of the project’s impacts on 1) the circulation system, including transit, roadway, bicycle, and pedestrian facilities, 2) VMT, 3) safety hazards, and 4) emergency access.
The proposed project would result in an increase in traffic volumes on the roadways in the project vicinity because of site-generated vehicular traffic. The traffic analysis will evaluate the potential impacts of the project generated traffic during AM and PM peak hours to evaluate the ability of the roadway network to accommodate the projected traffic volumes and identify any required roadway improvements.
Garland and Associates will prepare a traffic report that addresses the following:
The roadways that provide access to the plan area will be inventoried with regard to such physical conditions as number of lanes, types of traffic control devices, sidewalk/shoulder locations, and driveway locations. Garland will evaluate nine roadways and study 12 intersections in the report. The report will present quantitative information on baseline traffic conditions on the roadways in the study area.
Traffic volumes will be identified from the Trip Generation Manual and the anticipated interaction and internal trips between the plan’s on-site land uses. Traffic volumes will be obtained from the City of Lancaster, County of Los Angeles, and Caltrans (where available) and supplemented with new traffic counts where necessary.
Existing traffic conditions and the traffic conditions for the anticipated year of project buildout will be evaluated. Future baseline traffic volumes will be forecasted by considering area-wide growth and the cumulative volumes of traffic that would be generated by other proposed projects in the plan area.
The impact analysis will include a before-and-after analysis of traffic conditions on the roadways and intersections in the site vicinity (i.e., traffic conditions with and without plan implementation). Potential measures will be identified to mitigate the potential significant traffic impacts and to ensure that the roadway network could accommodate the projected traffic volumes.
Task 3 – Screencheck Draft EIR
Under the previous task order, Aspen had begun preparing an EIR template and including information on the environmental and regulatory setting in the template; for this current task order, Aspen will update that template to include the most current CEQA issue areas, as well as revisit the environmental and regulatory setting to ensure that this information is the most current.
This task will include the preparation of two Screencheck Draft EIRs for review and comment by the City.
Aspen will prepare the S creencheck Draft EIR consistent with the approved outline discussed with the City. Aspen will prepare a concise but comprehensive, accurate, and objective environmental document that fully complies with CEQA requirements and that addresses all mandatory sections. The methodology Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
A-7 March 22, 2024
and criteria used for determining impacts will be clearly described in eac h technical section of the EIR, including any assumptions, models, or modeling techniques used in the analysis.
Project Description
The Project Description (or Specific Plan Description) will be developed in Task 1. It is identified here because it is a key component of the environmental analysis. The Project Description will be developed to discuss all phases of the plan implementation including proposed design and performance standards for future development and related discretionary approvals in the EIR (to address the “whole of the action,” as required in CEQA). The Specific Plan description should include:
Details regarding plan implementation including anticipated development phases, any plan area improvements that will be made by the City, desired design features, desired future land uses, and proposed development standards;
Specific Plan objectives;
A listing of all plan area parcels including the Assessor’s Parcel Numbers, location, size, and current land use; and
Maps and tables to concisely convey plan details.
Alternatives
This task was not initiated under the previous task order before the project was placed on hold. Aspen will work with the City and design team (as applicable and at direction of the City) to identify a range of reasonable and feasible alternatives early in the EIR process, including any alternatives identified during scoping. The alternatives will be evaluated regarding their ability to meet the objectives identified in the Project Description, and those that meet CEQA requirements for feasibility and ability to meet Specific Plan objectives will be carried forward for analysis under each issue area.
Issue-Area Analysis
Aspen will prepare an analysis of potential environmental impacts from implementation of the Specific Plan. The following issue areas will be addressed in the EIR:
• Aesthetics
• Air Quality and Greenhouse Gas Emissions
• Biological Resources
• Cultural, Paleontological and Tribal
Resources
• Energy
• Geology and Soils
• Hazards and Hazardous Materials
• Hydrology and Water Quality
• Land Use and Planning
• Noise
• Population and Housing
• Public Services and Recreation
• Transportation
• Utilities and Service Systems
The analysis will include the following content for each issue area:
Environmental Setting to identify key characteristics of the plan area for the specific issue area. Regulatory Setting to identify applicable local, state, and federal regulations. Environmental Impacts and Mitigation Measures to identify potential impacts that could result from plan implementation and recommend measures to reduce these potential impacts that would be Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE PROJECT
A-8 March 22, 2024
applied to future physical developments. The issue-specific thresholds of significance will be identified and discussed in this section.
Cumulative Impact Analysis to address potential “cumulative” environmental impacts that could result from plan implementation in combination with other proposed projects or plans. Level of Significance after Mitigation to address any remaining residual impact, if any, and make a determination of significance for each issue based on the thresholds of significance.
Aspen will clearly describe the methodology and criteria used to determine impacts in each technical section of the EIR, including any as sumptions, models, or modeling techniques used in the analysis. For the issue areas where a technical report was prepared, the information in the technical reports will form the basis of the analyses. For those issues without a technical report, Aspen will conduct literature searches of resource-specific issues and review of available documents for other projects or plans near the plan area to gather baseline information. Some of baseline information will also come from the site visits conducted at the start of this task order and information gained during preparation of the technical reports. All site visits and references will be documented and identified in the EIR.
For e ach significant impact identified in our analysis, the impacts and mitigation measure s will be numbered for easy reference. The effectiveness and feasibility of mitigation measures will be discussed, and the level of significance after mitigation will be identified. The impact assessment will consider direct, indirect, and cumulative impacts based on the agreed-upon significance criteria. Cumulative impacts will take into consideration foreseeable development within a 1- to 2-mile radius of the plan area depending on the specific issue area.
Aspen will prepare the First Screencheck Draft EIR and submit to the City for review and comment. Aspen will submit one (1) electronic copy with appendices. Based on comments received from the City, Aspen will revise the First Screencheck Draft EIR. The Second Screencheck Draft EIR will be submitted to the City for review and comment. Aspen will revise this version of the document consis tent with the comments received from the City. Aspen will submit one (1) electronic copy (Word and Adobe) and one (1) hard copy.
Aspen will only submit the appendices with this Second Screencheck Draft EIR if they have changed. The costs assume that only minimal changes will be needed to the appendices.
Task 4 – Draft EIR
This task was not initiated under the previous task order before the project was placed on hold. Task 4 includes the publication of the Draft EIR once approved by the City for publication. Based on the review and approval of the Second Screencheck Draft EIR by the City and the approval to move forward with publication of the draft document, Aspen will publish the Draft EIR and provide two (2) hard copies of the draft with the appendices on CD to the City. The City will distribute the documents and release the Notice of Completion on this task order.
Task 5 – Final EIR
This task was not initiated under the previous task order before the project was placed on hold. Aspen will prepare a Screencheck Final EIR or Response Document that includes the Response to Comments and identifies any changes to the Draft EIR consistent with the format used in previous EIRs prepared for the City. Aspen will submit the Screencheck Final for review and comment by the City. Aspen will revise the Screencheck Final EIR based on comments received. Aspen will work closely with the Ci ty in responding to comments and may need to work with the City on finalizing responses to specific questions. Aspen will provide two (2) hard copies of the Final EIR with the appendices on CD to the City Exhibit “A” Scope of Work - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE PROJECT
A-9 March 22, 2024
Task 6 – Meetings and Hearings
Kick-off Meeting. Although a kick-off meeting was held under the previous task order, Aspen anticipates that an additional kick-off meeting will be required under this current task order to discuss the updated Project Description. Aspen will schedule a kick-off meeting with City Staff to discuss Specific Plan details, communication protocols, schedule, and overall expectations. The kick -off m eeting will be scheduled within the first 2 weeks of receiving the notice to proceed. Aspen will document the results of this meeting in brief notes provided by email to the City.
Site Visit. Although a site visit was conducted under the previous task order, because of the time that has passed, Aspen recommends conducting an additional site visit to document any changes in the environmental setting. Under this current task order, Aspen will conduct a site visit following the kick-off meeting. The site visit will provide Aspen an opportunity to gather site -specific information in the field such as sensitive receptor and existing land uses for the Project Description . Our scope includes the participation of two (2) team members at the site visit.
In-person and Conference Call Meetings. This current task order includes additional in -person and conference call meetings throughout the duration of the project. This task includes participation in one (1) in-person meeting with the City and the design team to discuss the Specific Plan. These meetings will be used to discuss plan-related issues and will be planned with a specific agenda prior to scheduling th is meeting. In addition, the scope includes 6 hours of time (or 12 30 -minute calls) for conference call meetings with the City regarding the Specific Plan EIR and during the active periods of the EIR preparation.
Public Hearings. The Aspen Project Manager will participate in one (1) Planning Commission hearing and one (1) Board of Supervisors hearing. The Aspen Project Manager can present fin dings of the EIR and respond to questions from decisionmakers or the public at both hearings.
Tasks and Products
TASK PRODUCT QUANTITY AND DESCRIPTION
Task 1 – Project Description Project Description Electronic copy by email Task 2 – Technical Reports Air Quality/GHG
Aquatic Resources Delineation
Biological Resources
Cultural Resources
Hazardous Materials Record Search
Noise
Transportation/Traffic
Electronic copy by email
Depending on file size, may provide via
OneDrive folder for downloading
Task 3 – Screencheck Draft EIR
First Screencheck Draft EIR 1 electronic copy (Word and Adobe) and 1 hard copy (including appendices)
Second Screencheck Draft EIR 1 electronic copy (Word and Adobe) and 1 hard copy (appendices only if changed)
Task 4 – Draft EIR Public Review Draft EIR 2 hard copies (appendices on CD)
Task 5 – Final EIR
Screencheck Final EIR
(Response Document)
1 electronic copy (Word and Adobe)
includes responses to comments and
mitigation monitoring program
Final EIR 2 hard copies (appendices on CD)
TASK ORDER NO. 1
Technical Studies and Environmental Impact Report
Parkway Village Specific Plan
Environmental Services
EXHIBIT “C” – FEE SCHEDULE
Aspen Environmental Group – March 22, 2024
March 22, 2024 C-1
The table below presents our cost estimate for preparation of eight technical reports and the Parkway Village Specific Plan EIR. The cost is based the contract hourly rates and staff identified in our authorized contract. Our estimate to complete the technical studies and EIR is $256,767.
The table below includes the task breakdown for the Exhibit “A” Scope of Work.
Scope and Cost Assumptions
Based on recent City project, Aspen has not included distribution of the Specific Plan EIR. However, Aspen has completed distribution for other projects and can do so here if desired by the City. Consistent with previous project s, Aspen has not included t he distribution or publication of CEQA notices. However, Aspen can add preparation and distribution of CEQA notices to scope/cost if desired by the City. Our scope assumes:
− City will prepare and distribute Notice of Preparation (NOP), Notice of Completion (NOC) form and NOP to State Clearinghouse, and post notices with the County Clerk’s office. − City will prepare and distribute Notice of Availability of Draft EIR (NOA) , NOC to State Clearinghouse with EIR, and post notices with the County Clerk’s office. − City will prepare and file Notice of Determination with the State Clearinghouse and post notice with the County Clerk’s office.
Consistent with prior project, scope and cost do not include payment of filing fee to the California Department of Fish and Wildlife (CDFW: $4,051.25).
Task 1 Task 2 Task 3 Task 4 Task 5 Task 6
Aspen Environmental Group Labor $9,520 $110,875 $54,640 $9,540 $10,220 $15,380 $210,175 Aspen Non-Labor Costs $303 $8,202 $495 $495 $495 $1,238 $11,227 Subtotal Aspen Cost $9,823 $119,077 $55,135 $10,035 $10,715 $16,618 $221,402 Subcontractors
Earth Systems $1,734 $6,470 $1,001 $1,300 $10,505
Garland & Associates $19,800 $2,420 $2,640 $24,860
Subtotal Subcontractor Cost $21,534 $8,890 $1,001 $3,940 $35,365 TOTAL Cost $9,823 $140,610 $64,025 $11,036 $14,655 $16,618 $256,767 Labor Hours by Task
Aspen Environmental Group 58 756 350 60 60 90 1,374
Earth Systems 8 34 6 6 54
Garland & Associates 140 20 16 176
TOTAL LABOR HOURS 58 904 404 66 82 90 1,604
Screencheck
Draft
Technical
Reports
Project
DescriptionCOST BY TASK
Cost of Services
Total
Tasks 1-6
Kick-Off &
MeetingsFinal EIRDraft EIR
Exhibit “C” Fee Schedule - City of Lancaster Planning Department
TECHNICAL STUDIES AND EIR FOR PARKWAY VILLAGE SPECIFIC PLAN
C-2 March 22, 2024
Aesthetics
The City’s design team will provide elevations and/or site drawings showing proposed elevations of anticipated structures and design features or elements for use in the visual resources/aesthetics analysis of the EIR.
Aquatic Resources
The results of the field delineation will be compiled into one comprehensive Aquatic Resources Delineation Report. The report will address potential jurisdictional resources on the site, which is expected to include the California Department of Fish and Wildlife and Regional Water Quality Control Board.
The field delineation survey described under aquatic resources would be completed by a senior biologist during one (1) 8-hour field day.
Biological Resources
The results of the field stu dies will be compiled into one Biological Technical Report, and standalone reports for each type of survey will not be prepared.
Mohave ground squirrel (MGS) trapping was conducted in 2005 in areas of suitable habitat in the Amargosa Specific Plan area with negative results. This scope of work includes a habitat assessment for MGS. Protocol-level trapping surveys may be recommended depending on the results on the habitat assessment and would require coordination with CDFW. Protocol surveys are not included in this scope of work, but Aspen has an MGS -permitted biologist on staff who can complete these surveys under a separate authorization, if required.
The focused biological field surveys described under the Biological Resources Technical Report would be completed by a team of three (3) biologists over three (3) 10-hour field days. The western Joshua tree inventory would be completed by a team of two (2) biologists over two (2) 10- hour field days.
Field surveys are recommended to be completed in or around May 2024 to adhere to applicable survey protocols established by resources agencies (i.e. CDFW).
Cultural Resources
Scope assumes that up to three (3) DPR 523 forms will be prepared.
Tribal Cultural Resources
Consistent with other projects completed for the City, our scope assumes that the City will handle all consultation with the Native American Tribes (SB 18 and AB 52). Aspen has in-house archeologists that can support the City with this effort if desired by the City and with a scope and cost amendment. City will provide information on the notices and the results of the Native American consultation to include in the Tribal Resources section of the EIR.
Hydrology/Water Quality
It is assumed that drainage engineering information for the pr oposed development, including the disposition of Amargosa Creek flows, will be provided by the City of Lancaster.
ADDITIONAL AUTHORIZATION NO. 1
FOR CONSULTANT SERVICES
TO: Aspen Environmental Group
Attn: Hamid Rastegar
5020 Chesebro Road, Suite 200
Agoura Hills, CA 91301
Under the terms of our Professional Consultant Services Agreement: Category 4 – Environmental Services dated December 7, 2018, you are authorized to proceed with the following consulting services:
Project: Parkway Village Master Plan
Original Authorization: $246,716
Previous Additional Authorization: $0.00
This Authorization: $101,743.26
Total Not to Exceed: $348,459.26
Date Required: Immediately
Project Manager: Jocelyn Swain
ACCEPTED:
_____________________________ ______________________
Hamid Rastegar Date
Aspen Environmental Group
AUTHORIZED:
_____________________________ _______________________ Jason Caudle Date
City Manager
STAFF REPORT
City of Lancaster
CC 18
5/7/2024
JC
Date:May 7, 2024
To: Mayor Parris and City Council Members
From:George N. Harris II, Director of Finance/IT
Subject:Fiscal Year 2022/23 Financial Audit.
Recommendation:
Receive audited annual financial report for the City of Lancaster, CA, Fiscal Year ending June 30, 2023.
Fiscal Impact:
There is no fiscal impact on the City of Lancaster, CA.
Background:
The City of Lancaster has recently completed its annual financial audit for the fiscal year ending June 30, 2023. 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 for the auditors to express an opinion on the financial statements.
Based on the audit, CLA expressed that the financial statements as of June 30, 2023, present fairly, in all material respects, the financial position of the City of Lancaster. In addition to the financial statements, the auditors issued an Audit Communication Letter, Government Auditing Standards Letter, and an Appropriations Limit Letter. The Audit Communication Letter (attached) aims 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 Government Letter (attached) aims to communicate the auditor’s report on internal controls over financial reporting. The auditors found a Material Weakness in Internal Control over Financial reporting. A corrective action plan has been implemented to address the single area noted for improvement. As a result, the organization has been diligently working on improving policies and procedures related to year-end transactions, specifically for assets, long-term liabilities, and revenues. Lastly, the attached Appropriations Limit Letter aims to communicate any exceptions to the Appropriations Limit. No exceptions were noted.
Attachment:
City of Lancaster Annual Financial Report for Fiscal Year Ending June 30, 2023 1 6
1 5
Audit Communication Letter dated April 9, 2024
Government Auditing Standards Letter dated April 9, 2024 Appropriations Limit Letter dated April 9, 2024
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of the 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 (the City), as of and for the year ended June 30, 2023, 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 April 9, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) 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 the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and responses as item 2023-001 that we consider to be a material weakness.
Honorable Mayor and Members of the City Council
City of Lancaster
(2)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City'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 Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Irvine, California
April 9, 2024
CITY OF LANCASTER
SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED JUNE 30, 2023
(3)
2023– 001
Type of Finding: Material Weakness in Internal Control over Financial Reporting
Condition: As part of the audit, material adjustments were proposed to adjust cash and investments, revenues, unavailable revenue, long term labilities and beginning fund balances/net position.
Criteria or specific requirement: The City’s management is responsible for establishing and maintaining internal controls for the proper recording of all the City’s accounting transactions.
Effect: Prior to the audit adjustments being recorded, the City’s financial statements were materially misstated.
Cause: The City’s internal controls over financial statement close and reporting did not operate as designed.
Recommendation: We recommend that the City review its internal control procedures over financial statement close and reporting to ensure that they operate as designed.
Views of responsible officials and planned corrective actions: Management agrees with this finding and will implement a corrective action plan to ensure that internal controls are in place to capture all financial transactions in the appropriate period. In response to the audit finding, the City has been diligently working on improving policies and procedures related to year-end transactions, specifically for assets, long-term liabilities, and revenues.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Ho
norable 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 as of and for the year ended June 30, 2023, and have issued our report thereon dated April 9, 2024. 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 in our engagement agreement dated August 14, 2023. 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 1l, the City changed accounting policies by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 96, Subscription-Based Information Technology Arrangements, effective July 1, 2022. Accordingly, the accounting change has been applied to the beginning of the period of adoption.
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 corresponding deferred outflows of resources and deferred inflows of resources for the 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 Mayor and 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 evaluated 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 12 to the financial statements. The disclosure regarding Lancaster Choice Energy purchase commitments reported in Note 16 to the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Significant unusual transactions
We identified no significant unusual transactions.
Difficulties encountered in performing the audit
The completion of our audit was delayed to the City not preparing schedules that supported final general ledger balances which resulted in many audit adjustments.
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.
Management did not identify, and we did not notify them of any uncorrected financial statement misstatements.
Corrected misstatements
The following material misstatements detected as a result of audit procedures were corrected by management:
The corrected misstatements include journal entries to adjust beginning net position, beginning fund balance, land, unavailable revenue, and long term liabilities.
Disagreements with management
For purposes of this communication, 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.
Honorable Mayor and City Council
City of Lancaster
Circumstances that affect the form and content of the auditors’ report As previously communicated to you, the report was modified to include an emphasis of matter paragraph relating to the restatement of beginning net position for error corrections.
Management representations
We have requested certain representations from management that are included in the management representation letter dated April 9, 2024.
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. We were informed by management that there were no 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.
Required Supplementary Information
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 compared 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.
Supplementary information in relation to the financial statements as a whole 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 supplementary 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 April 9, 2024.
Honorable Mayor and City Council
City of Lancaster
Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of introductory and statistical sections. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report.
We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements.
This communication is intended solely for the information and use of the City Council and management of 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
April 9, 2024
CI
TY OF LANCASTER
ANNUAL COMPREHENSIVE FINANCIAL REPORT
WITH INDEPENDENT AUDITOR’S REPORT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2023
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL I
PRINCIPAL CITY OFFICIALS VI
ORGANIZATION CHART VII
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 5
BASIC 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
BUDGETARY COMPARISON STATEMENTS
GENERAL FUND 23
LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND 24
TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL
REVENUE FUND 25
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 26
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
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 88
SCHEDULE OF CONTRIBUTIONS 90
PARS PENSION PLAN
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 92
SCHEDULE OF CONTRIBUTIONS 94
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS 96
SCHEDULE OF CONTRIBUTIONS 97
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 102
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 110
OTHER SPECIAL REVENUE FUNDS
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
GAS TAX 118
LANDSCAPE MAINTENANCE DISTRICT 119
HOUSING AND COMMUNITY DEVELOPMENT 120
HOME PROGRAM 121
PROPOSITION A 122
BIKEWAY IMPROVEMENT 123
PROPOSITION C 124
FEDERAL GRANTS 125
STATE GRANTS 126
PARKS DEVELOPMENT 127
DEVELOPER FEES - SIGNALS 128
DEVELOPER FEES - DRAINAGE 129
RECYCLED WATER 130
BIOLOGICAL IMPACT FEES 131
TRAFFIC IMPACT FEES 132
AQMD 133
LANCASTER DRAINAGE MAINTENANCE DISTRICT 134
MISCELLANEOUS GRANTS 135
TRAFFIC SAFETY 136
LA COUNTY REIMBURSEMENT 137
MTA GRANT 138
URBAN STRUCTURE PROGRAM 139
SEWER MAINTENANCE DISTRICT 140
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
PROPOSITION 1B 141
PROPOSITION 42 142
MEASURE R 143
MEASURE M 144
LANCASTER LIGHTING DISTRICT 145
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 146
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 148
STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS 152
FINANCIAL TRENDS
NET POSITION BY COMPONENT 153
CHANGES IN NET POSITION 154
FUND BALANCES, GOVERNMENTAL FUNDS 157
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS 158
REVENUE CAPACITY
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS 159
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 160
DIRECT AND OVERLAPPING PROPERTY TAX RATES 161
PRINCIPAL PROPERTY TAXPAYERS 162
PROPERTY TAX LEVIES AND COLLECTIONS 163
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE 164
RATIOS OF GENERAL BONDED DEBT OUTSTANDING 165
CITY OF LANCASTER
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 166 LEGAL DEBT MARGIN INFORMATION 167
PLEDGED-REVENUE COVERAGE 168
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 169
TOP 10 PRINCIPAL EMPLOYERS 170
OPERATING INFORMATION
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 171 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM 172
INTRODUCTORY SECTION
R. REX PARRIS RAJ MAHLI
MAYOR COUNCIL MEMBER
MARVIN CRIST LAUREN HUGHES-LESLIE
VICE MAYOR COUNCIL MEMBER
KEN MANN JASON CAUDLE
COUNCIL MEMBER CITY MANAGER
(i)
44933 Fern Avenue
Lancaster, CA 93534
661.723.6000
cityoflancasterca.org April 9, 2024
Honorable Mayor and Members of the City Council:
We are pleased to submit for your consideration the Annual Comprehensive Financial Report (ACFR) of the City of Lancaster, California, for the fiscal year which ended June 30, 2023. This document has been prepared by the City’s Finance Department, and responsibility for the accuracy and completeness of the presentation, including all disclosures, rests with City staff. To provide a reasonable basis for making these representations, City of Lancaster management has established a comprehensive internal control framework designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information to prepare Lancaster’s financial statements.
The cost of internal controls should not outweigh their benefits; therefore, Lancaster’s internal controls have been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge and belief, management asserts that this financial report is complete and reliable in all material respects. This report includes the annual audit report of the City's independent auditors, Clifton Larson Allen LLP. All disclosures necessary to understand the City's financial activities have been included.
The data is designed to factually report the City's financial condition and to present the results of City operations as measured by activity among the various fund groups in an easily readable and understandable style. All disclosures necessary for the reader to gain an understanding of the City's financial affairs have been included. Financial statements are prepared in accordance with GAAP, as promulgated by the Government Accounting Standards Board.
The ACFR is presented in three sections: introduction, finances, and statistics. The introduction includes this transmittal letter, the City's organizational chart, and a list of principal officers. The financial section includes the basic financial statements, including the management’s discussion and analysis, the combined and individual fund statements and schedules, and the auditor's report on the financial statements and schedules. The statistical section includes selected multi-year financial and demographic information.
This ACFR incorporates all City funds, including the separate entities under the direction of the City Council. These separate entities include the Lancaster Successor Agency and California CHOICE. Additionally, contained in the governmental funds section are the component units of the Lancaster Housing Authority, Lancaster Community Services Foundation, Lancaster Public Financing Authority, and Lancaster Power Authority.
The City provides a broad range of services associated with a municipality. These services include highway, street, drainage, sewer, electricity, and infrastructure construction and maintenance; planning and zoning; and parks, recreation, and cultural activities. Law enforcement, fire protection, the library, and animal control services are provided under contract with Los Angeles County. Water, sanitation, and schools are funded by special districts, not under City control.
R. REX PARRIS RAJ MAHLI
MAYOR COUNCIL MEMBER
MARVIN CRIST LAUREN HUGHES-LESLIE
VICE MAYOR COUNCIL MEMBER
KEN MANN JASON CAUDLE
COUNCIL MEMBER CITY MANAGER
(ii)
44933 Fern Avenue
Lancaster, CA 93534
661.723.6000
cityoflancasterca.org
City of Lancaster Profile
Lancaster is located north of Los Angeles County in the Antelope Valley, about seventy miles from downtown Los Angeles. The Antelope Valley is separated from the Los Angeles Basin by the Angeles National Forest. The City is bordered by several unincorporated Los Angeles County communities and the City of Palmdale. Lancaster is served by state route 14 and by two major grade-separated east-west thoroughfares: Avenue H and Avenue L. With 94 square miles of residential communities, recreation and art venues, hi-tech industry, retail businesses, and open, natural space, Lancaster fosters an exciting atmosphere for living and a place of limitless opportunity for business.
The City was incorporated on November 22, 1977, and on April 13, 2010, voters approved Measure C which granted the City its Charter City status. The Mayor and City Council are elected at large. Lancaster has grown significantly in size and diversity over the last 42 years.
According to the 2010 Census, Lancaster’s population was 156,633, an increase of nearly thirty-two percent over the 2000 Census total. The 2022 US Census showed the population remaining steady at a population of 169,185.
As the first three-time recognized “Most Business Friendly City” by the Los Angeles County Economic Development Corporation, Lancaster understands that communities and families thrive when good jobs are created. Because many businesses can choose to locate those jobs anywhere, job creation depends on business-friendly practices. The City today attracts national and local companies from a diverse field of industries. Affordable housing prices attract families to our close-knit community.
In fact, even as Lancaster grows, we have retained a family-focused, hometown spirit.
Thousands of visitors come to Lancaster in the spring to enjoy our beautiful poppy and wildflower fields among the world-famous Joshua trees. The film industry has captured the essence of the Antelope Valley in multitudes of movies, television shows, and music videos shot here each year, bringing many additional visitors to patronize our hotels and retail establishments.
R. REX PARRIS RAJ MAHLI
MAYOR COUNCIL MEMBER
MARVIN CRIST LAUREN HUGHES-LESLIE
VICE MAYOR COUNCIL MEMBER
KEN MANN JASON CAUDLE
COUNCIL MEMBER CITY MANAGER
(iii)
44933 Fern Avenue
Lancaster, CA 93534
661.723.6000
cityoflancasterca.org
Strategic Initiatives
Public Safety Enhancements
The safety and well-being of our residents remain
a top priority. In 2024, we are enhancing our
hybrid policing model and expanding community
policing efforts to ensure Lancaster remains a
safe place to live and work. The Lancaster Police
Safety Department, in collaboration with the LA
Sheriff’s Department, will introduce new initiatives
focused on crime prevention and community
engagement. With the introduction of Lancaster's
first Chief of Police, new officers are in the
process of being hired, police vehicles are online,
and the police station is under construction. Completion is expected in FY 25.
Hydrogen City Advancements
Lancaster is proud to continue its leadership in the
hydrogen energy sector. Building upon our leadership
role in the hydrogen sector, we will expand
partnerships and pursue additional funding
opportunities to enhance Lancaster's position as a
pioneer in green hydrogen production. Our continued
collaboration with industry leaders and the success of
the Pacific Hydrogen Alliance, as well as our
involvement with ARCHES, underscores our
dedication to clean energy innovation.
Economic and Community Development
Inspired by the successful launch of the 1st Time
Home Buyer Program and the vitality of our
business community, as evidenced by numerous
ribbon cuttings and special events, we aim to
further stimulate economic growth and housing
affordability. Our focus will include supporting
local businesses, attracting new investments, and
implementing housing initiatives that meet the
diverse needs of Lancaster residents.
R. REX PARRIS RAJ MAHLI
MAYOR COUNCIL MEMBER
MARVIN CRIST LAUREN HUGHES-LESLIE
VICE MAYOR COUNCIL MEMBER
KEN MANN JASON CAUDLE
COUNCIL MEMBER CITY MANAGER
(iv)
44933 Fern Avenue
Lancaster, CA 93534
661.723.6000
cityoflancasterca.org
Environmental Sustainability and Resiliency
Recognizing the critical importance of environmental
stewardship, our strategies will include continuing
clean energy ventures, supporting sustainable transit
solutions through AVTA, and promoting renewable
energy projects that benefit our community and the
planet. The City also completed plans for MARRC, a
Multi-Agency Regional Resiliency Center, which
includes a 140,000 SF event center, emergency
operations center, culinary kitchen and energy center.
Enhancing Quality of Life Through Technology and Innovation In the coming year, we will leverage technology to
improve city services, enhance the quality of life for
our residents, and make Lancaster a model for smart
city initiatives nationwide. This includes further
development of smart infrastructure, improving
connectivity, and advancing our smart city initiatives to create a more livable, efficient, and sustainable
community. PoppyFi, a free public Wi-Fi network, was
launched this year and will be rolled out at all City
parks.
Public Engagement and Inclusivity
Reflecting on the success of our community
engagement efforts and special events, we are
committed to fostering a more connected and
inclusive Lancaster. Our initiatives will focus on
expanding community outreach, supporting local
events celebrating our city's diversity, and creating
opportunities for meaningful public participation in
city governance. City events surpassed previous
years and are targeted to continue growing. Our
Lancaster Community Center served over 12,000
community members. Rawley Duntley Park, Mariposa Park, El Dorado Park, and more are undergoing major renovations. This year, the City unveiled new hardcourts at Sgt. Steve Owen Memorial Park and a new recording studio – Studio 606.
R. REX PARRIS RAJ MAHLI
MAYOR COUNCIL MEMBER
MARVIN CRIST LAUREN HUGHES-LESLIE
VICE MAYOR COUNCIL MEMBER
KEN MANN JASON CAUDLE
COUNCIL MEMBER CITY MANAGER
(v)
44933 Fern Avenue
Lancaster, CA 93534
661.723.6000
cityoflancasterca.org
Measure LC
With the passing of Measure LC, the City’s 0.75% sales tax increase, residents and staff demonstrated their commitment to the long-term fiscal health of their City. The measure was passed by voters on November 3, 2020, and was estimated to provide approximately $12,000,000 in revenues annually. The City received $21,682,348 in Fiscal Year 22-23. All additional revenues created by this sales tax will remain in the City. The goals of this additional funding: community safety, facilities development and maintenance, and services for the highest risk populations, is overseen by a Citizens’ Oversight Committee.
OTHER INFORMATION
Independent Audit
The City requires an annual audit of the books of account, financial records, and transactions of all administrative departments of the City. This report was prepared with the assistance of the auditor, the independent certified public accounting firm of Clifton Larson Allen LLP. The auditor's opinion is included in this report.
Acknowledgments
The preparation of this document is the result of the hard work of the entire Finance Department staff. Their efforts, coupled with the assistance of our auditors, have culminated in the completion of this report. We are pleased with the product and wish to thank all involved.
Special appreciation goes to the members of the City Council for their continuing engagement and support of the City’s financial activities. The financial success of the City of Lancaster is directly attributable to the City Council's progressive and responsible manner of addressing the business of this municipality.
Respectfully,
George Harris
George Harris
Finance and Information Technology Director
CITY OF LANCASTER
PRINCIPAL CITY OFFICIALS
YEAR ENDED JUNE 30, 2023
(vi)
CITY OF LANCASTER
ORGANIZATION CHART
YEAR ENDED JUNE 30, 2023
(vii)
FINANCIAL SECTION
THIS PAGE IS INTENTIONALLY LEFT BLANK
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Lancaster
Lancaster, California
Report on the audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lancaster (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note 1D to the financial statements, effective July 1, 2022, the City adopted new accounting guidance, Government Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements . Our opinions are not modified with respect to this matter.
Honorable Mayor and Members of the City Council
City of Lancaster
(2)
Restatement for Correction of Errors
As discussed in Note 20 to the financial statements, the City made restatements to beginning fund balance/net position to correct prior period misstatements. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
Honorable Mayor and Members of the City Council
City of Lancaster
(3)
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
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 related ratios, and the schedule of contributions - OPEB identified as required supplementary Information in the accompanying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Honorable Mayor and Members of the City Council
City of Lancaster
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 9, 2024, 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
April 9, 2024
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
(5)
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, 2023. 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 $112,402,737
The cost of the General Fund was $125,804,127
The General Fund reported revenues in deficit of expenditures of $13,401,390 For the General Fund, actual resources available for appropriation (revenue inflows and fund balance) was greater than final budget by $4,974,824; while actual appropriations (outflows) were less than the final budget by $9,340,589
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 intergovernmental 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 blending of separate legal entities: Lancaster Housing Authority, Lancaster Community Services Foundation, Lancaster Financing Authority, Lancaster Power Authority, and California Choice Energy 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 Custodial Funds and Private Purpose Fund of the Lancaster Successor Agency.
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
(6)
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 government-wide financial statements. However, unlike the government-wide statements, governmental fund financial 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 information 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 individual 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 the form of combining statements elsewhere in this report.
The City of Lancaster adopts an annual budget for its governmental funds. A fiscal year (FY) 22/23 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, 2023
(7)
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 decreased the City of Lancaster's net position by $2,423,690.
Fiscal Year
2022 2023
Expenses
Governmental activities:
General Government $ 27,689,637 $ 37,100,475 Public Safety 35,132,514 38,988,488
Community Development 664,521 1,297,964 Parks, Recreation and Arts 25,614,746 24,557,617 Development Services 65,722,004 82,016,861
Housing and Neighborhood Revitalization 7,758,697 1,001,945 Interest on long-term debt 2,551,057 3,036,813
Total primary governmental activities expenses $ 165,133,176 $ 188,000,163
Program Revenues (see Schedule 3)
Governmental activities:
Charges for services:
General Government $ 287,009 $ 1,156,517 Public Safety 802,251 681,722 Community Development 653,198 816,687 Parks, Recreation and Arts 2,499,106 3,415,139 Development Services 20,552,067 20,662,559 Housing and Neighborhood Revitalization 12 3,276 Operating grants and contributions 60,297,493 54,094,552 Capital grants and contributions 10,047,212 2,997,354 Total governmental activities program revenues $ 95,138,348 $ 83,827,806
Governmental activities $ (69,994,828) $ (104,172,357)
Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes 27,184,193 33,007,795
Franchise taxes 9,261,656 7,451,316
Transient occupancy taxes 2,709,026 2,676,338 Business licenses taxes 1,364,377 855,151 Other taxes 1,027,933 851,184
Intergovernmental 186,425 180,915 Intergovernmental - state shared sales taxes 50,950,947 49,229,826 Investment Earnings (1,397,099) 3,977,989 Miscellaneous 9,577,174 2,157,473
Gain on sale property 801,949 433,995
Transfers 946,797 926,685
Total governmental activities $ 102,613,378 $ 101,748,667 Change in Net Assets
Governmental activities $ 32,618,550 $ (2,423,690)
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
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Business-Type Activities. Business-type activities increased the City of Lancaster’s net position by $4,807,987 primarily due to increased power revenue as a result of rate increases and major heat event during summer months that caused a huge increase in energy consumption and sales.
2022 2023
Expenses
Business-type activities:
Lancaster Power Authority $ 1,947,106 $ 1,348,432 Lancaster Choice Energy 51,194,116 67,149,222 California Choice Energy Authority 7,081,730 7,517,372 Total business-type activities expenses 60,222,952 76,015,026
Program Revenues (see Schedule 3)
Business-type activities:
Charges for services:
Lancaster Power Authority $ 1,911,332 $ 1,910,499 Lancaster Choice Energy 51,692,560 68,549,854 California Choice Energy Authority 7,206,199 8,015,547 Total business-type activities program revenues $ 60,810,091 $ 78,475,900
Business-type activities: 587,139 2,460,874
Other Changes in Net Assets
Business-type activities:
Investment Earnings $ 182 $ 313 Miscellaneous 551,588 3,273,485 Transfers (946,797) (926,685)
Total business-type activities $ (395,027) $ 2,347,113
Total Primary Government Revenues, Contributions,
and Transfers $ 60,415,064 $ 80,823,013
Change in Net Assets
Business-type activities 192,112 4,807,987
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 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, 2023
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City of Lancaster- Cost of Services
(in thousands)
City of Lancaster Governmental Activities
(in Thousands)
City of Lancaster Governmental Activities
REVENUE & EXPENSE BY SOURCE
Total Cost Net Cost
of Services of Services
2023 2023
General Government $ 37,100 $ (31,304) Public Safety 38,988 (35,776) Community Development 1,297 1,300 Parks, Recreation and Arts 24,557 (20,761) Development Services 82,016 (14,058) Housing and Neighborhood
Revitalization 1,001 (534) Totals $ 184,959 $ (101,133)
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
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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.
As of the end of the current fiscal year, the City of Lancaster’s governmental funds reported combined ending fund balances of $230,734,242. This is a decrease of $31,570,675 from last fiscal year mostly due to significant increase in capital outlay for projects during the year.
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 resulting in a fund balance of $119,236,452. This is a decrease of $2,675,059 from last fiscal year in fund balance due to increases of transfers to internal service funds like Information Technology for needed upgrades.
The Transportation Development Authority Fund is a special revenue fund used for local street and road improvements, congestion 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 $11,843,657.
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 $73,120,880. 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 various Lease Revenue Financings. 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 $5,068,468.
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 $10,762,536, an increase over last year of $4,807,987.
This is primarily due to higher power sales for Lancaster Choice Energy as a result of rate increases and high heat events during the summer months that increased energy consumption and sales.
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
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General Fund Budgetary Highlights
The actual amount of expenditures for the General Fund at year-end were $9,340,589 less than the final budget to include transfers. Management works very hard to control expenditures, ensuring the city is fiscally sound. Managers citywide diligently tracked division and departmental budgets to ensure overruns did not occur. As a result of the decreased spending and increased revenues, the City was still able to see a net positive $14,315,413 in actuals over appropriations.
Capital Asset and Debt Administration
Capital Assets. At the end of FY 2023, the City had $897.5 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 $43 million in new capital projects through fiscal year 2022-23 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)
Governmental Business-type Total Capital
Activities Activities Assets
Land $ 44,412 $ 44,412
Structures and
Improvements 88,043 88,043
Furniture and Equipment 20,426 20,426 Infrastructure 1,793,618 1,793,618
Construction in Progress 60,485 60,485 Right of Use Assets 4,903 4,903 Intangible Assets - 23,487 23,487 Accumulated
Depreciation (1,114,313) (10,803) (1,125,116) Net Capital Assets $ 897,577 $ 12,682 $ 910,258 Note 6 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 increased by $5.3 Million from the prior year. This is due to a new property acquisition and the implementation of GASB 96. As of June 30, 2023, the City of Lancaster had accrued employee benefits outstanding of $3,822,670.
The City’s AA credit rating remained unchanged for FY 22/23.
Economic Factors and Next Year’s Budgets and Rates
CITY OF LANCASTER
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
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On June 27, 2023, the City Council adopted and approved the budget for FY 23/24 along with the Five- Year Capital Improvement Program. Appropriations (including transfers) of $272.5 million were adopted for the 23/24 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.
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.
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 25.0% 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 George Harris, Director of Finance or Viridiana Iguaran, Assistant Director of Finance, at the City of Lancaster, 44933 Fern Avenue, Lancaster, CA 93534, or by phone at (661)723-6037.
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BASIC FINANCIAL STATEMENTS
CITY OF LANCASTER
STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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GovernmentalBusiness-TypeActivitiesActivitiesTotalASSETSCash and Investments139,093,297$ 5,355,749$ 144,449,046$ Cash and Investments - Held Separately by CCEA- 4,526,555 4,526,555 Receivables:Accounts14,395,929 24,541,792 38,937,721 Taxes12,149,540 - 12,149,540 Accrued Interest571,634 - 571,634 Leases700,774 - 700,774 Due from Other Governments17,251,189 1,684,797 18,935,986 Notes and Loans5,399,779 - 5,399,779 Deposits- 147,000 147,000 Prepaid Items1,152,241 4,288,480 5,440,721 Internal Balances11,991,715 (11,991,715) - Inventories21,915 - 21,915 Land Held for Resale42,433,996 - 42,433,996 Advances to Successor Agency64,135,866 - 64,135,866 Restricted Assets:Cash and Investments14,978,559 380 14,978,939 Capital Assets:Nondepreciable104,898,048 - 104,898,048 Depreciable792,679,469 12,682,858 805,362,327 Total Assets1,221,853,951 41,235,896 1,263,089,847 DEFERRED OUTFLOWS OF RESOURCESDeferred Amounts on Pension Plan22,039,119 - 22,039,119 Deferred Amounts on OPEB5,082,209 - 5,082,209 Total Deferred Outflows of Resources27,121,328 - 27,121,328 LIABILITIESAccounts Payable31,686,883 7,068,230 38,755,113 Accrued Liabilities4,915,044 32,417 4,947,461 Accrued Interest723,745 63,484 787,229 Unearned Revenues1,001,987 2,295,424 3,297,411 Deposits Payable1,862,495 2,187,050 4,049,545 Due to Other Governments- 1,210,682 1,210,682 Noncurrent Liabilities:Due Within One Year - Other7,134,637 785,000 7,919,637 Due in More than One Year:Other85,225,270 16,831,073 102,056,343 Net Pension Liability73,211,155 - 73,211,155 Net OPEB Liability8,783,733 - 8,783,733 Total Liabilities214,544,949 30,473,360 245,018,309 DEFERRED INFLOWS OF RESOURCESDeferred Amounts on Leases664,561 - 664,561 Deferred Amounts on Pension Plan2,711,886 - 2,711,886 Deferred Amounts on OPEB5,863,022 - 5,863,022 Total Deferred Inflows of Resources9,239,469 - 9,239,469 NET POSITIONNet Investment in Capital Assets820,612,473 (4,933,215) 815,679,258 Restricted for:Community Development Projects3,187,028 - 3,187,028 Public Safety284,928 - 284,928 Parks, Recreation, and Arts2,350,257 - 2,350,257 Development Services47,255,465 - 47,255,465 Housing and Neighborhood Revitalization79,582,845 - 79,582,845 Capital Projects19,848,420 - 19,848,420 Unrestricted52,069,445 15,695,751 67,765,196 Total Net Position 1,025,190,861$ 10,762,536$ 1,035,953,397$
CITY OF LANCASTER
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Charges Operating Capitalfor Grants and Grants andFunctions/ProgramsExpenses Services Contributions ContributionsGOVERNMENTAL ACTIVITIESGeneral Government 37,100,475$ 1,156,517$ 4,639,365$ -$ Public Safety 38,988,488 681,722 2,530,369 - Community Development 1,297,964 816,687 1,781,722 - Parks, Recreation, and Arts 24,557,617 3,415,139 380,780 - Development Services 82,016,861 20,662,559 44,298,206 2,997,354 Housing and Neighborhood Revitalization 1,001,945 3,276 464,110 - Interest and Other Charges 3,036,813 - - - Total Governmental Activities 188,000,163 26,735,900 54,094,552 2,997,354 BUSINESS-TYPE ACTIVITIESLancaster Power Authority 1,348,432 1,910,499 - - Lancaster Choice Energy 67,149,222 68,549,854 - - California Choice Energy Authority 7,517,372 8,015,547 - - Total Business-Type Activities 76,015,026 78,475,900 - - Total Government 264,015,189$ 105,211,800$ 54,094,552$ 2,997,354$ Program Revenues
CITY OF LANCASTER
STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Governmental Business-TypeFunctions/ProgramsActivities Activities TotalGOVERNMENTAL ACTIVITIESGeneral Government (31,304,593)$ -$ (31,304,593)$ Public Safety (35,776,397) - (35,776,397) Community Development 1,300,445 - 1,300,445 Parks, Recreation, and Arts (20,761,698) - (20,761,698) Development Services (14,058,742) - (14,058,742) Housing and Neighborhood Revitalization (534,559) - (534,559) Interest and Other Charges (3,036,813) - (3,036,813) Total Governmental Activities (104,172,357) - (104,172,357) BUSINESS-TYPE ACTIVITIESLancaster Power Authority - 562,067 562,067 Lancaster Choice Energy - 1,400,632 1,400,632 California Choice Energy Authority - 498,175 498,175 Total Business-Type Activities - 2,460,874 2,460,874 Total Government (104,172,357) 2,460,874 (101,711,483) GENERAL REVENUES AND TRANSFERSTaxes:Property Taxes, Levied for General Purposes 33,007,795 - 33,007,795 Franchise Taxes 7,451,316 - 7,451,316 Transient Occupancy Taxes 2,676,338 - 2,676,338 Business Licenses Taxes 855,151 - 855,151 Other Taxes 851,184 - 851,184 Intergovernmental 180,915 - 180,915 Intergovernmental - State Shared Sales Tax 49,229,826 - 49,229,826 Investment Earnings 3,977,989 313 3,978,302 Miscellaneous 2,157,473 3,273,485 5,430,958 Gain on Sale of Property 433,995 - 433,995 Transfers 926,685 (926,685) - Total General Revenues and Transfers 101,748,667 2,347,113 104,095,780 CHANGE IN NET POSITION(2,423,690) 4,807,987 2,384,297 Net Position - Beginning of Year 1,027,614,551 5,954,549 1,033,569,100 NET POSITION - END OF YEAR1,025,190,861$ 10,762,536$ 1,035,953,397$ Net (Expenses) Revenue andPrimary GovernmentChanges in Net Position
CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Debt ServiceFundLancasterTransportationLancaster Housing Development Financing GeneralAuthority AuthorityAuthorityASSETSPooled Cash and Investments61,567,028$ 12,958,420$ -$ -$ Receivables:Accounts4,933,467 23 - 172,647 Taxes10,401,996 - - - Accrued Interest530,373 - - - Leases700,774 - - - Due from Other Governments314,409 - 8,971,543 - Notes and Loans, Net1,048,279 3,761,440 - - Prepaid Items978,157 1,545 - - Due from Other Funds43,259,191 - - - Inventories21,915 - - - Land Held for Resale- 42,209,230 - - Advances to Successor Agency44,978,738 19,157,128 - - Restricted Assets:Cash and Investments with Fiscal Agents- - - 14,978,559 Total Assets168,734,327$ 78,087,786$ 8,971,543$ 15,151,206$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable21,416,276$ 62,064$ 4,995$ -$ Accrued Liabilities2,351,961 12,449 - - Unearned Revenues77,909 - - - Deposits Payable1,812,495 50,000 - - Due to Other Funds- - 11,838,662 9,910,091 Total Liabilities25,658,641 124,513 11,843,657 9,910,091 DEFERRED INFLOWS OF RESOURCESDeferred Inflows - Leases664,561 - - - Unavailable Revenues23,174,673 4,842,393 8,971,543 172,647 Total Deferred Inflows of Resources23,839,234 4,842,393 8,971,543 172,647 FUND BALANCESNonspendable:Notes and Loans1,048,279 - - - Prepaid Items978,157 1,545 - - Inventories21,915 - - - Advances to Successor Agency25,609,169 - - - Restricted:Community Development Projects- - - - Public Safety- - - - Parks, Recreation, and Arts- - - - Development Services- - - - Housing and Neighborhood Revitalization- 73,119,335 - - Capital Projects- - - 5,068,468 Committed:Contingency Reserve49,046,805 - - - Assigned:Employee Benefits3,822,671 - - - Legal Claims2,550,000 - - - Capital Projects3,046,116 - - - Unassigned33,113,340 - (11,843,657) - Total Fund Balances (Deficit)119,236,452 73,120,880 (11,843,657) 5,068,468 Total Liabilities, Deferred Inflows of Resources, and Fund Balances168,734,327$ 78,087,786$ 8,971,543$ 15,151,206$ Special Revenue Funds
CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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OtherTotalGovernmentalGovernmental FundsFundsASSETSPooled Cash and Investments64,567,849$ 139,093,297$ Receivables:Accounts9,289,792 14,395,929 Taxes1,747,544 12,149,540 Accrued Interest41,261 571,634 Leases- 700,774 Due from Other Governments7,965,237 17,251,189 Notes and Loans, Net590,060 5,399,779 Prepaid Items172,539 1,152,241 Due from Other Funds- 43,259,191 Inventories- 21,915 Land Held for Resale224,766 42,433,996 Advances to Successor Agency- 64,135,866 Restricted Assets:Cash and Investments with Fiscal Agents- 14,978,559 Total Assets84,599,048$ 355,543,910$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable10,203,548$ 31,686,883$ Accrued Liabilities2,550,634 4,915,044 Unearned Revenues924,078 1,001,987 Deposits Payable- 1,862,495 Due to Other Funds9,518,723 31,267,476 Total Liabilities23,196,983 70,733,885 DEFERRED INFLOWS OF RESOURCESDeferred Inflows - Leases- 664,561 Unavailable Revenues16,249,966 53,411,222 16,249,966 54,075,783 FUND BALANCESNonspendable:Notes and Loans- 1,048,279 Prepaid Items172,539 1,152,241 Inventories- 21,915 Advances to Successor Agency- 25,609,169 Restricted:Community Development Projects2,998,559 2,998,559 Public Safety284,928 284,928 Parks, Recreation, and Arts2,350,257 2,350,257 Development Services47,255,465 47,255,465 Housing and Neighborhood Revitalization1,621,117 74,740,452 Capital Projects1,882,051 6,950,519 Committed:Contingency Reserve- 49,046,805 Assigned:Employee Benefits- 3,822,671 Legal Claims- 2,550,000 Capital Projects- 3,046,116 Unassigned(11,412,817) 9,856,866 Total Fund Balances (Deficit)45,152,099 230,734,242 Total Liabilities, Deferred Inflows of Resources, and Fund Balances84,599,048$ 355,543,910$
CITY OF LANCASTER
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Fund Balances - Total Governmental Funds230,734,242$ Amounts reported for governmental activities in the statement of net position aredifferent because:Capital assets used in governmental activities are not current financial resources,and therefore, are not reported in the governmental funds balance sheet:Capital Assets2,011,890,630 Accumulated Depreciation(1,114,313,113) 897,577,517 Long-term liabilities applicable to the City's governmental activities are not due andpayable in the current period and accordingly are not reported. Interest onlong-term liabilities is not accrued in governmental funds, but rather is recognizedas an expenditure when due. All liabilities, both current and long-term, arereported in the statement of net position. Balances as of June 30, 2023, are:Bonds, Notes, Loans, Leases and Subscriptions Payable(85,987,237) Claims and Judgments(2,550,000) Compensated Absences(3,822,670) (92,359,907) The net pension liability applicable to the City's governmental activities is not due andpayable in the current period and accordingly is not reported as fund liabilities.Deferred outflows of resources and deferred inflows of resources related topensions are only reported in the statement of net position as the changes inthese amounts affect only the government-wide statements for governmentalactivities:Deferred Outflows of Resources22,039,119 Deferred Inflows of Resources(2,711,886) Net Pension Liability(73,211,155) (53,883,922) The net OPEB liability applicable to the City's governmental activities is not due andpayable 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 thestatement of net position, as the changes in these amounts affect only thegovernment-wide statements for governmental activities. Deferred Outflows of Resources5,082,209 Deferred Inflows of Resources(5,863,022) Net OPEB Liability(8,783,733) (9,564,546) Accrued interest payable for the current portion of interest due on bonds is notreported in the governmental funds(723,745) Long-term assets are not available to pay for current period expenditures and,therefore, are reported as deferred inflows of resources in the fund financialstatements:Unavailable Revenues53,411,222 Net Position of Governmental Activities1,025,190,861$
CITY OF LANCASTER
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Debt Service FundLancaster TransportationLancasterHousing Development Financing GeneralAuthority AuthorityAuthorityREVENUESTaxes62,519,614$ -$ -$ -$ Licenses and Permits7,876,861 - - - Intergovernmental29,158,404 - - - Charges for Services3,534,972 - - - Investment Earnings3,059,418 25,164 - 735,093 Fines and Forfeitures643,406 - - - Contributions- - - - Gain from Sale of Land Held for Resale- 433,995 - - Miscellaneous5,610,062 119,273 - - Total Revenues112,402,737 578,432 - 735,093 EXPENDITURES Current:General Government35,243,477 - - 83,470 Public Safety38,974,589 - - - Community Development- - - - Parks, Recreation, and Arts22,550,970 - - - Development Services16,965,701 - - - Housing and Neighborhood Revitalization- 879,263 - - Capital Outlay9,258,605 4,400 746,808 9,350,070 Debt Service:Principal Retirement2,579,351 - - 1,075,000 Interest and Fiscal Charges231,434 - - 2,477,431 Total Expenditures125,804,127 883,663 746,808 12,985,971 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES(13,401,390) (305,231) (746,808) (12,250,878) OTHER FINANCING SOURCES (USES)Sale of Capital Assets256,272 - - - Lease Proceeds888,875 - - - Transfers In11,746,051 - - 3,484,048 Transfers Out(5,164,867) (560,103) (8,220,390) - Total Other Financing Sources (Uses)7,726,331 (560,103) (8,220,390) 3,484,048 NET CHANGE IN FUND BALANCES(5,675,059) (865,334) (8,967,198) (8,766,830) Fund Balances (Deficit) - Beginning of Year, As Restated124,911,511 73,986,214 (2,876,459) 13,835,298 FUND BALANCES (DEFICIT) - END OF YEAR119,236,452$ 73,120,880$ (11,843,657)$ 5,068,468$ Special Revenue Funds
CITY OF LANCASTER
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
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Other Total GovernmentalGovernmental FundsFundsREVENUESTaxes4,416,380$ 66,935,994$ Licenses and Permits2,771,320 10,648,181 Intergovernmental28,798,158 57,956,562 Charges for Services10,534,852 14,069,824 Investment Earnings518,793 4,338,468 Fines and Forfeitures211,113 854,519 Contributions57,632 57,632 Gain from Sale of Land Held for Resale- 433,995 Miscellaneous474,673 6,204,008 Total Revenues47,782,921 161,499,183 EXPENDITURESCurrent:General Government3,017,878 38,344,825 Public Safety- 38,974,589 Community Development871,273 871,273 Parks, Recreation, and Arts119,866 22,670,836 Development Services23,521,187 40,486,888 Housing and Neighborhood Revitalization132,457 1,011,720 Capital Outlay25,819,702 45,179,585 Debt Service:Principal Retirement836,767 4,491,118 Interest and Fiscal Charges401,991 3,110,856 Total Expenditures54,721,121 195,141,690 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES(6,938,200) (33,642,507) OTHER FINANCING SOURCES (USES)Sale of Capital Assets- 256,272 Lease Proceeds- 888,875 Transfers In9,084,810 24,314,909 Transfers Out(9,442,864) (23,388,224) Total Other Financing Sources (Uses)(358,054) 2,071,832 NET CHANGE IN FUND BALANCES(7,296,254) (31,570,675) Fund Balances (Deficit) - Beginning of Year, As Restated52,448,353 262,304,917 FUND BALANCES (DEFICIT) - END OF YEAR45,152,099$ 230,734,242$
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, 2023
See accompanying Notes to Basic Financial Statements.
(22)
Net Change in Fund Balances - Total Governmental Funds(31,570,675)$ Amounts reported for governmental activities in the statement of activities aredifferent because:Governmental funds report capital outlays as expenditures. However, in thestatement of activities, the cost of those assets is allocated over the estimateduseful lives as depreciation expense. This is the amount by which depreciationexceeded capital expense in the current period.Capital Outlays 36,878,576 Disposals (26,002) Depreciation Expense (39,429,961) (2,577,387) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debtconsumes the current financial resources of governmental funds. Neithertransaction, however, has any effect on net position.Principal Payments 4,491,118 Leases (888,875) Amortization of Bond Premium 401,388 4,003,631 Some expenses reported in the statement of activities do not require the use ofcurrent financial resources and therefore are not reported as expenditures in thegovernmental funds.Change in Accrued Employee Benefits (45,822) Change in Claims Payable 504,000 458,178 Accrued interest for long-term liabilities. This is the net change in accrued interestfor the current period. (327,345) OPEB expenditures reported in the governmental funds includes the actuarialdetermined contributions. In the statement of activities, OPEB expense includesthe change in the net OPEB liability and related change in OPEB amounts fordeferred outflows of resources and deferred inflows of resources. 2,863,487 Pension expenditures reported in the governmental funds includes the annual requiredcontributions. In the statement of activities, pension expense included the changein the net pension liability, and related change in pension amounts for deferredoutflows of resources and deferred inflows of resources. (574,527) Revenues are deferred in the governmental funds when they are not received soonafter year-end to be considered to be available. The availability criteria does notapply to the statement of net position and therefore the revenue is recognized. 25,300,948 Change in Net Position of Governmental Activities(2,423,690)$
CITY OF LANCASTER
BUDGETARY COMPARISON STATEMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(23)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR, AS RESTATED124,911,511$ 124,911,511$ 124,911,511$ -$ RESOURCES (INFLOWS)Taxes60,793,486 60,793,486 62,519,614 1,726,128 Licenses and Permits6,346,399 7,761,419 7,876,861 115,442 Intergovernmental29,543,065 29,762,709 29,158,404 (604,305) Charges for Services2,778,302 2,767,312 3,534,972 767,660 Investment Earnings882,091 918,091 3,059,418 2,141,327 Fine and Forfeitures646,623 623,403 643,406 20,003 Rental Income150,000 150,000 - (150,000) Miscellaneous4,001,867 4,861,192 5,610,062 748,870 Sale of Capital Assets- - 256,272 256,272 Lease Proceeds- - 888,875 888,875 Transfers In9,816,400 12,681,499 11,746,051 (935,448) Amounts Available for Appropriations114,958,233 120,319,111 125,293,935 4,974,824 CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government28,302,077 37,533,630 35,243,477 2,290,153 Public Safety41,200,743 41,127,070 38,974,589 2,152,481 Parks, Recreation, and Arts23,710,735 26,614,202 22,550,970 4,063,232 Development Services17,195,875 20,413,221 16,965,701 3,447,520 Capital Outlay- 38,772 9,258,605 (9,219,833) Debt Service:Principal Retirement- - 2,579,351 (2,579,351) Interest and Fiscal Charges- - 231,434 (231,434) Transfers Out1,359,409 14,582,688 5,164,867 9,417,821 Total Charges to Appropriations111,768,839 140,309,583 130,968,994 9,340,589 BUDGETARY FUND BALANCE - END OF YEAR128,100,905$ 104,921,039$ 119,236,452$ 14,315,413$ Budgeted Amounts
CITY OF LANCASTER
BUDGETARY COMPARISON STATEMENT
LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(24)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR, AS RESTATED73,986,214$ 73,986,214$ 73,986,214$ -$ RESOURCES (INFLOWS)Investment Earnings- - 25,164 25,164 Gain from Sale of Land Held for Resale10,000 10,000 433,995 423,995 Miscellaneous190,378 190,378 119,273 (71,105) Amounts Available for Appropriations74,186,592 74,186,592 74,564,646 378,054 CHARGES TO APPROPRIATIONS (OUTFLOWS)Housing and Neighborhood Revitalization1,306,781 1,413,641 879,263 534,378 Capital Outlay- - 4,400 (4,400) Transfers Out560,103 700,068 560,103 139,965 Total Charges to Appropriations1,866,884 2,113,709 1,443,766 669,943 BUDGETARY FUND BALANCE - END OF YEAR72,319,708$ 72,072,883$ 73,120,880$ 1,047,997$ Budgeted Amounts
CITY OF LANCASTER
BUDGETARY COMPARISON STATEMENT
TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(25)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(2,876,459)$ (2,876,459)$ (2,876,459)$ -$ RESOURCES (INFLOWS)Intergovernmental 20,300,130 20,300,130 - (20,300,130) Amounts Available for Appropriations 17,423,671 17,423,671 (2,876,459) (20,300,130) CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 746,808 (746,808) Transfers Out 12,276,847 15,934,515 8,220,390 7,714,125 Total Charges to Appropriations 12,276,847 15,934,515 8,967,198 6,967,317 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR5,146,824$ 1,489,156$ (11,843,657)$ (13,332,813)$ Budgeted Amounts
CITY OF LANCASTER
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(26)
NonmajorLancasterLancasterCalifornia PowerChoiceChoice EnergyAuthorityEnergyAuthorityTotalASSETSCurrent Assets:Cash and Investments - Pooled with City5,355,749$ -$ -$ 5,355,749$ Cash and Investments - - 4,526,555 4,526,555 Receivables:Accounts430,392 23,227,843 883,557 24,541,792 Due from Other Governments- 1,684,797 - 1,684,797 Deposits- 147,000 - 147,000 Prepaid Items- 4,261,145 27,335 4,288,480 Restricted Assets:Cash and Investments380 - - 380 Total Current Assets5,786,521 29,320,785 5,437,447 40,544,753 Noncurrent Assets:Capital Assets:Depreciable, Net12,682,858 - - 12,682,858 Total Noncurrent Assets12,682,858 - - 12,682,858 Total Assets18,469,379 29,320,785 5,437,447 53,227,611 LIABILITIESCurrent Liabilities:Accounts Payable- 6,491,635 576,595 7,068,230 Accrued Liabilities- 32,417 - 32,417 Interest Payable63,484 - - 63,484 Unearned Revenues15,105 1,727,150 553,169 2,295,424 Due to Other Governments- - 1,210,682 1,210,682 Due to Other Funds- 11,991,715 - 11,991,715 Deposits- 100,000 2,087,050 2,187,050 Current Portion of Long-Term Liabilities785,000 - - 785,000 Total Current Liabilities863,589 20,342,917 4,427,496 25,634,002 Long-Term Liabilities:Noncurrent Portion of Long-Term Liabilities16,831,073 - - 16,831,073 Total Long-Term Liabilities16,831,073 - - 16,831,073 Total Liabilities17,694,662 20,342,917 4,427,496 42,465,075 NET POSITIONNet Investment in Capital Assets(4,933,215) - - (4,933,215) Unrestricted5,707,932 8,977,868 1,009,951 15,695,751 Total Net Position774,717$ 8,977,868$ 1,009,951$ 10,762,536$ Enterprise FundsBusiness-Type Activities
CITY OF LANCASTER
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(27)
NonmajorLancasterLancasterCalifornia PowerChoiceChoice EnergyAuthorityEnergyAuthorityTotalOPERATING REVENUESSales and Service Charges1,910,499$ 68,549,854$ 8,015,547$ 78,475,900$ Total Operating Revenues1,910,499 68,549,854 8,015,547 78,475,900 OPERATING EXPENSESPurchased Power- 59,104,631 - 59,104,631 Administration and General4,451 8,044,591 7,517,372 15,566,414 Depreciation Expense939,471 - - 939,471 Total Operating Expenses943,922 67,149,222 7,517,372 75,610,516 OPERATING INCOME 966,577 1,400,632 498,175 2,865,384 NONOPERATING REVENUES (EXPENSES)Interest Revenue313 - - 313 Other Nonoperating Income - 3,273,485 - 3,273,485 Interest Expense(404,510) - - (404,510) Total Nonoperating Revenue (Expenses)(404,197) 3,273,485 - 2,869,288 INCOME BEFORE TRANSFERS562,380 4,674,117 498,175 5,734,672 TRANSFERSTransfers Out(11,505) (915,180) - (926,685) Total Transfers(11,505) (915,180) - (926,685) CHANGE IN NET POSITION550,875 3,758,937 498,175 4,807,987 Net Position - Beginning of Year223,842 5,218,931 511,776 5,954,549 NET POSITION - END OF YEAR774,717$ 8,977,868$ 1,009,951$ 10,762,536$ Enterprise FundsBusiness-Type Activities
CITY OF LANCASTER
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(28)
NonmajorLancasterLancasterCalifornia PowerChoiceChoice EnergyAuthorityEnergyAuthorityTotalCASH FLOWS FROM OPERATING ACTIVITIESCash Received From Customers and Users2,299,031$ 65,520,911$ 10,034,688$ 77,854,630$ Cash Paid to Suppliers for Goods and Services(42,713) (71,861,056) (7,321,834) (79,225,603) Net Cash Provided (Used) by Operating Activities2,256,318 (6,340,145) 2,712,854 (1,370,973) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESCash Received From Other Funds- 2,259,104 - 2,259,104 Cash Paid to Other Funds(11,505) (915,180) - (926,685) Net Cash Provided (Used) by Noncapital Financing Activities(11,505) 1,343,924 - 1,332,419 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPrincipal Paid on Capital Debt(735,000) - - (735,000) Interest Paid on Capital Debt(381,602) - - (381,602) Net Cash Provided (Used) by Capital and Related Financing Activities(1,116,602) - - (1,116,602) CASH FLOWS FROM INVESTING ACTIVITIESInterest Received313 - - 313 Net Cash Provided by Investing Activities313 - - 313 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS1,128,524 (4,996,221) 2,712,854 (1,154,843) Cash and Cash Equivalents - Beginning of Year4,227,605 4,996,221 1,813,701 11,037,527 CASH AND CASH EQUIVALENTS - END OF YEAR5,356,129$ -$ 4,526,555$ 9,882,684$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIESOperating Income (Loss)966,577$ 1,400,632$ 498,175$ 2,865,384$ Adjustments to Reconcile Operating Income (Loss)Changes in Assets and Liabilities:(Increase) Decrease in Accounts Receivable388,532 (6,054,497) (79,676) (5,745,641) (Increase) Decrease in Due from Other Governments- (1,335,081) - (1,335,081) (Increase) Decrease in Prepaid Items- (1,150,137) 22,106 (1,128,031) Increase (Decrease) in Accounts Payable(38,262) (3,524,758) (89,310) (3,652,330) Increase (Decrease) in Accrued Liabilities- (36,939) - (36,939) Increase (Decrease) in Due to Other Governments- - 699,136 699,136 Increase (Decrease) in Unearned Revenues- 1,087,150 530,976 1,618,126 Increase (Decrease) in Deposits- - 1,131,447 1,131,447 Net Cash Provided (Used) by Operating Activities 2,256,318$ (6,340,145)$ 2,712,854$ (1,370,973)$ Business-Type ActivitiesEnterprise Funds
CITY OF LANCASTER
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(29)
Private-PurposeTrust FundSuccessorAgency of the Custodial Former RDA FundsASSETSPooled Cash and Investments 17,928,370$ 342,383$ Receivables:Accounts 14,538 82,611 Taxes - 1,847 Notes and Loans, Net 87,391 - Accrued Interest 3,459 - Restricted Assets:Cash and Investments with Fiscal Agents 2,686,073 2,185 Total Assets 20,719,831 429,026 DEFERRED OUTFLOWS OF RESOURCESDeferred Losses on Debt Refundings 4,312,258 - LIABILITIESAccounts Payable 3,282 25,661 Interest Payable 2,131,328 53,138 Deposits Payable - 169,074 Advances from City of Lancaster 64,135,866 - Long-Term Liabilities:Due in One Year 10,327,000 - Due in More Than One Year 129,827,600 - Total Liabilities 206,425,076 247,873 DEFERRED INFLOWS OF RESOURCESDeferred Gains on Debt Refundings 881,471 - NET POSITION (DEFICIT)Held in Trust for Other Purposes (182,274,458) - Restricted for Bondholders - 181,153 Total Net Position (Deficit) (182,274,458)$ 181,153$
CITY OF LANCASTER
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(30)
Private-PurposeTrust FundSuccessorAgency of the CustodialFormer RDA FundsADDITIONSTaxes 13,613,013$ -$ Intergovernmental - Other 2,469,798 - Investment Income 565,467 - Rental Income 16,500 - Miscellaneous - - Total Additions 16,664,778 - DEDUCTIONSAdministrative Expenses 431,295 - Payment of Special Tax Debt 5,823,464 - Total Deductions 6,254,759 - CHANGE IN NET POSITION10,410,019 - Net Position (Deficit) - Beginning of Year (192,684,477) 181,153 NET POSITION (DEFICIT) - END OF YEAR(182,274,458)$ 181,153$
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(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, 2023
(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, 2023
(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 government’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, 2023
(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 statements. 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, 2023
(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.
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Fund Classifications (Continued)
Lancaster Financing Authority Debt Service Fund – This fund is used to account for resources restricted or assigned for expenditures of principal and interest.
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 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, 2023
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a right- to-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosures regarding a SBITA.
The City adopted the requirement of the guidance effective July 1, 2022 and has applied the provisions of this standard to the beginning of the period of adoption.
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 investment 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.”
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.
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 items), are reported in the government-wide financial statements. The government defines capital 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.
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued)
Property, plant, and equipment of the primary 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
Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.
K. Subscription-Based Technology Arrangements (SBITA)
SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received from the SBITA vendor at the commencement of the SBITA term.
SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.
L. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to debt refunding, pensions, and other postemployment benefits. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 9 and 10.
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of financial position and the governmental funds balance sheet includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government-wide financial statements, the City’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Notes 9 and 10. The statement of net position and the governmental funds balance sheet also reports a deferred inflow of resources related to leases. The deferred gain on refunding resulted from the difference between the carrying value of the refunded debt and its reacquisition price is deferred and amortized over the shorter of the life of the refunded or refunding debt.
Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The City has reported deferred inflows of resources related to unavailable revenues. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available.
M. 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.
N. Land Held for Resale
The Lancaster Housing Authority acquired property via the Neighborhood Stabilization Program to reduce blight and provide affordable housing to its 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.
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. 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 employment. 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.
P. 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.
Q. 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.
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Fund Balance Classification (Continued)
Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the 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.
City Council approved a revised Reserve Policy, establishing a General Fund Reserve of 40%, a General Liability Fund Reserve equal to the amount identified in an annual actuarial that represents the net annual liability after annual budgeted program resources, a Fleet Maintenance reserve of 20%, and an Information Technology reserve of 20%. The contingency reserves were established to help sustain City operations during emergencies and provide flexibility to respond to unexpected fiscal impacts throughout the fiscal year.
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.
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 those unrestricted fund balance classifications can be used.
R. 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 Employees’ 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.
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. 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.
T. 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.
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 required 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 appropriations 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. The AVAQMD special revenue fund did not have a legally adopted budget during the current year.
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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) 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 $3,046,116. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities.
Budget Basis of Accounting
Budgets for all governmental funds, except the Community Services Foundation, Zero-Net Energy Solar Mitigation In Lieu Special Revenue Fund, Mariposa Lily Special Revenue Fund, Lancaster Financing Authority Debt Service Fund, and the Capital Projects Fund, which are budgeted on a project basis, are adopted on a basis consistent with accounting principles generally accepted in the United States of America.
Excess of Expenditures Over Appropriations
The following are funds in which certain expenditures exceeded appropriations for the fiscal year ended June 30, 2023:
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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Excess of Expenditures Over Appropriations (Continued)
FinalVariance WithBudgetActualFinal BudgetMajor Funds:General FundCapital Outlay38,772$ 9,258,605$ (9,219,833)$ Lancaster Housing AuthorityCapital Outlay- 4,400 (4,400) Transportation Development AuthorityCapital Outlay- 746,808 (746,808) Other Governmental Special Revenue Funds:Gas Tax:General Government- 20 (20) Capital Outlay- 1,113,089 (1,113,089) Housing and Community DevelopmentCapital Outlay- 46,659 (46,659) HomeTransfers Out1,037 108,809 (107,772) Proposition ACapital Outlay- 1,686,256 (1,686,256) Bikeway ImprovementCapital Outlay- 194,668 (194,668) Proposition CCapital Outlay- 2,314,199 (2,314,199) Federal GrantCapital Outlay- 3,566,733 (3,566,733) State GrantCapital Outlay- 1,078,186 (1,078,186) Park DevelopmentCapital Outlay- 260,143 (260,143) Developer Fees - SignalsCapital Outlay- 117,327 (117,327) Developer Fees - DrainageCapital Outlay- 279,560 (279,560) Traffic ImpactCapital Outlay- 581 (581) Biological Impact FeesDevelopment Services- 5,810 (5,810) Landscape Drainage Maintenance District:Capital Outlay- 51,875 (51,875) Debt Service - Principal Retirement- 33,767 (33,767) Debt Service - Interest and Fiscal Charges- 1,030 (1,030) MTA GrantCapital Outlay- 2,808,004 (2,808,004) Urban Structure ProgramCapital Outlay- 775,812 (775,812) Sewer MaintenanceGeneral Government- 1,234 (1,234) Capital Outlay- 1,552,775 (1,552,775) Measure R:Development Services- 1,620 (1,620) Capital Outlay- 8,372,939 (8,372,939) Measure M:Development Services- 598,926 (598,926) Capital Outlay4,000 1,600,896 (1,596,896)
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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Deficit Net Position/Fund Balances
The following funds contained deficit fund balances as of June 30, 2023:
DeficitAmountTransportation Development Authority Special Revenue Fund(11,843,657)$ (3)Other Governmental Special Revenue Funds:Federal Grants Special Revenue Fund(3,989,581) (1)State Grants Special Revenue Fund(1,476,528) (1)LA County Reimbursement(255,676) (1)MTA Grant(885,360) (1)Measure R(4,324,157) (1)AVAQMD(481,515) (2)
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, 2023, are reported in the accompanying financial statements as follows:
Statement of Net Position:Cash and Investments 144,449,046$ Restricted:Cash and Investments 14,978,939 Statement of Fiduciary Assets and Liabilities:Pooled Cash and Investments 18,270,753 Restricted:Cash and Investments with Fiscal Agents 2,688,258 Total Cash and Investments 180,386,996$ Cash and Investments Consisted of the Following:Cash on Hand 2,250$ Deposits with Financial Institutions 27,620,335 Investments 152,764,411 Total Cash and Investments 180,386,996$ 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.
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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, 2023, 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.
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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments in Cooperative Liquid Assets Securities System The City is a voluntary participant in the California Cooperative Liquid Assets Securities System (California CLASS), a joint exercise of powers entity authorized under Section 6509.7, California Government Code. California CLASS is overseen and governed by a Board of Trustees, which consists of four members who are public agency finance professionals. The fund is audited annually. The fair value of the position in the investment pool is the same as the value of the pool shares.
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, 2023, the City invested in various MTNs and municipal bonds which were rated AA- or better by Standard & Poor’s (S&P). At June 30, 2023, the City’s investments with US Government Sponsored Agency Securities were rated AA+ and money market mutual funds were rated AAA by S&P. California CLASS PRIME was rated AAAm by S&P. Investments in U.S. government securities are not considered to have credit risk and, therefore, their credit quality is not disclosed.
As of June 30, 2023, 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 the 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, 2023, 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, 2023, none of the City’s investments had issuers exceeding 5% of the City investment pool.
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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
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 investments 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.
As of June 30, 2023, the City had the following investments and original maturities:
1 Year 1 Year 3 Years 5 YearsInvestment Typeor Less to 3 Years to 5 Years and More TotalCity Investment Pool:United States Treasury Securities 4,878,068$ 7,918,550$ 6,642,504$ -$ 19,439,122$ United States Government Sponsored Agency Securities 2,867,515 5,701,956 996,370 - 9,565,841 Medium-Term Corporate Notes 3,852,258 5,586,742 - - 9,439,000 Certificates of Deposit 150,980 - - - 150,980 Municipal Bonds 2,571,283 - - - 2,571,283 California Local Agency Investment Fund (LAIF) 42,337,727 - - - 42,337,727 California CLASS 51,593,261 - - - 51,593,261 Held by Fiscal Agent:Money Market Mutual Funds 17,667,197 - - - 17,667,197 Total 125,918,289$ 19,207,248$ 7,638,874$ -$ 152,764,411$ 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 unadjusted 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).
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NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2023:
Quoted Observable UnobservablePrices Inputs InputsLevel 1 Level 2 Level 3 TotalUnited States Treasury Securities 19,439,122$ -$ -$ 19,439,122$ United States Government Sponsored Agency Securities - 9,565,841 - 9,565,841 Medium-Term Corporate Notes - 9,439,000 - 9,439,000 Certificates of Deposit - 150,980 - 150,980 Municipal Bonds - 2,571,283 - 2,571,283 Total Subject to Hierarchy 19,439,122$ 21,727,104$ -$ 41,166,226 LAIF (1) 42,337,727 California CLASS (1) 51,593,261 Held by Fiscal Agent:Money Market Mutual Funds (1) 17,667,197 Total Investment Portfolio 152,764,411$ (1) Investment is not subject to fair value hierarchy measurements.
NOTE 4 NOTES AND LOANS RECEIVABLE
Notes and loans receivable at June 30, 2023, were as follows:
Loans and Loan Long-TermNotes Forgiveness/ Lump-SumReceivable Allowance RepaymentRepayments Terms Terms TotalGeneral Fund 1,389,931$ (300,770)$ (40,882)$ 1,048,279$ Lancaster Housing Authority Special Revenue Fund 3,761,440 - - 3,761,440 Other Governmental Funds HOME Program Special Revenue Fund 15,377,995 (14,787,935) - 590,060 Total 20,529,366$ (15,088,705)$ (40,882)$ 5,399,779$ Fiduciary Private-Purpose: Trust Fund 95,724$ (8,333)$ -$ 87,391$ 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.
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NOTE 5 LEASE RECEIVABLE
The City, acting as lessor, leases land under long-term, noncancelable lease agreements.
The leases expire at various dates through 2033 and provide for renewal options ranging from three months to six years. During the year ended June 30, 2023, the City recognized $281,215 and $40,734 in lease revenue and interest revenue, respectively, pursuant to these contracts.
NOTE 6 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023, was as follows:
Governmental Activities
Balance at ConstructionJune 30, 2022 in Progress Balance atAs Restated (1) Transfers Additions Deletions June 30, 2023Governmental Activities:Capital Assets, Not Depreciated:Land 39,596,320$ -$ 4,816,394$ -$ 44,412,714$ Construction in Progress 62,803,178 (27,696,624) 25,378,780 - 60,485,334 Total Capital Assets, Not Depreciated 102,399,498 (27,696,624) 30,195,174 - 104,898,048 Capital Assets, Being Depreciated:Structures and Improvements 76,456,526 9,582,527 2,004,455 - 88,043,508 Furniture and Equipment 17,615,469 - 3,773,244 (962,041) 20,426,672 Right to Use Assets:Leases 79,786 - 888,874 (41,472) 927,188 Subscription 3,976,348 - - - 3,976,348 Infrastructure 1,775,487,939 18,114,097 16,830 - 1,793,618,866 Total Capital Assets, Being Depreciated 1,873,616,068 27,696,624 6,683,403 (1,003,513) 1,906,992,582 Less Accumulated Depreciation for:Structures and Improvements (39,567,923) - (1,509,978) - (41,077,901) Furniture and Equipment (13,307,392) - (1,059,593) 936,039 (13,430,946) Right to Use AssetsLeases (22,272) - (238,357) 41,472 (219,157) Subscription - - (897,413) - (897,413) Infrastructure (1,022,963,076) - (35,724,620) - (1,058,687,696) Total Accumulated Depreciation (1,075,860,663) - (39,429,961) 977,511 (1,114,313,113) Total Capital Assets, Being Depreciated, Net 797,755,405 27,696,624 (32,746,558) (26,002) 792,679,469 Governmental Activities Capital Assets, Net 900,154,903$ -$ (2,551,384)$ (26,002)$ 897,577,517$ (1) The beginning balance has been restated to add right-to-use SBITA assets in accordance with the implementation of GASB Statement No. 96, Subscription Based-Information Technology Arrangements, acquisition of land through a loan payable and construction in progress. See Note 20 for Restatement footnote.
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NOTE 6 CAPITAL ASSETS (CONTINUED)
Governmental Activities (Continued)
Depreciation expense was charged in the following functions in the statement of activities for the year ended June 30, 2023, as follows:
General Government1,502,788$ Public Safety13,899 Development Services35,599,802 Community Development426,691 Parks, Recreation, and Arts1,886,781 Total 39,429,961$ Business-Type Activities
Capital asset activity for the year ended June 30, 2023, was as follows:
Balance at Balance atJune 30, 2022 Additions Deletions June 30, 2023Capital Assets, Being Depreciated:Intangible Assets 23,486,774$ -$ -$ 23,486,774$ Less Accumulated Depreciation for:Intangible Assets (9,864,445) (939,471) (10,803,916) Total Business-Type Activities Capital Assets, Net 13,622,329$ (939,471)$ -$ 12,682,858$ The depreciation expense of $939,471 was charged to the Lancaster Power Authority program for the year ended June 30, 2023.
NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Due To/From Other Funds
Interfund receivable and payable balances at June 30, 2023, are as follows:
ReceivablePayableAmountGeneral FundTransportation Development Authority11,838,662$ Lancaster Financing Authority9,910,091 Other Governmental Funds9,518,723 California Choice Energy Authority Enterprise Fund11,991,715 Total43,259,191$ 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.
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NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS (CONTINUED) Transfers
The following schedule summarizes the City’s transfer activity:
Transfers InTransfers OutAmountGeneral FundLancaster Housing Authority Special Revenue Fund560,103$ Transportation Special Revenue Fund1,113,285 Other Governmental Funds9,163,063 Lancaster Power Authority Enterprise Fund11,505 Lancaster Choice Energy Enterprise Fund898,095 Lancaster Financing Authority Debt Service FundGeneral Fund3,187,162 Other Governmental Funds279,801 Lancaster Choice Energy Enterprise Fund17,085 Other Governmental FundsGeneral Fund1,977,705 Transportation Special Revenue Fund7,107,105 Total 24,314,909$ 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.
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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 8 LONG-TERM LIABILITIES
Governmental Activities
Changes in long-term liabilities for the governmental activities for the year ended June 30, 2023, are as follows:
July 1, 2022 Balance Due Due in More As Restated (1) Additions Deletions June 30, 2023 One Year than One YearDirect Borrowings:Section 108 Notes:Series 2015-A1201,000$ -$ 99,000$ 102,000$ 102,000$ -$ Series 2015-A2308,000 - 99,000 209,000 103,000 106,000 Equipment Agreements Payable 614,684 - 207,253 407,431 130,015 277,416 Loans 6,324,185 - 124,015 6,200,170 128,737 6,071,433 Settlement Agreement 1,000,000 - 200,000 800,000 200,000 600,000 Other Debt:Streetlight Acquisition Issue of 2016 11,475,000 - 605,000 10,870,000 620,000 10,250,000 Public Improvements Project Issue of 2018 13,545,000 - 290,000 13,255,000 305,000 12,950,000 Measure M & R Street Improvement Project Issue of 2018 45,480,000 - 785,000 44,695,000 825,000 43,870,000 Unamortized Bond Premium 7,008,265 - 401,388 6,606,877 - 6,606,877 Other Long-Term Liabilities:Lease Payable 58,386 888,875 238,551 708,710 224,302 484,408 Subscription Payable 3,976,348 - 1,843,299 2,133,049 785,792 1,347,257 Accrued Employee Benefits 3,776,848 2,868,613 2,822,791 3,822,670 2,822,791 999,879 Claims and Judgements 3,054,000 781,000 1,285,000 2,550,000 888,000 1,662,000 Total Governmental Activities 96,821,716$ 4,538,488$ 9,000,297$ 92,359,907$ 7,134,637$ 85,225,270$ (1) The beginning balance has been restated to add subscription liabilities in accordance with the implementation of GASB Statement No. 96, SBITA and $5,870,000 in loans for the acquisition of land. See Note 20 for Restatement footnote.
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 U.S. 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, 2023, was $102,000.
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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 8 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, 2023, was $209,000.
The annual requirements to amortize the Section 108 Notes outstanding indebtedness as of June 30, 2023, are as follows:
Year Ending June 30,Principal Interest Total2024 205,000$ 5,891$ 210,891$ 2025 106,000 1,510 107,510 Total 311,000$ 7,401$ 318,401$ Equipment Agreements Payable
On March 1, 2011, the City entered into an equipment 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. The total cost of the equipment acquired under the 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, 2023, is $407,431.
On August 1, 2016, the City entered into an equipment purchase agreement for vehicles.
The total cost of the equipment acquired under the 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. The note was paid off during the year.
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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Equipment Agreements Payable (Continued)
On February 22, 2017, the City entered into an equipment purchase agreement for vehicles.
The total cost of the equipment acquired under the 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. The note was paid off during the year.
On July 27, 2018, the City entered into an equipment purchase agreement for vehicles. The total cost of the equipment acquired under the 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 $51,498. The note was paid off during the year.
The future payments debt service payments are as follows:
Year Ending June 30,Principal Interest Total2024 130,015$ 16,326$ 146,341$ 2025 135,732 10,609 146,341 2026 141,684 4,657 146,341 Total 407,431$ 31,592$ 439,023$ 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, 2023, is $330,170.
The annual requirements to amortize the outstanding indebtedness as of June 30, 2023, are as follows:
Year Ending June 30,Principal Interest Total2024 128,736$ 8,943$ 137,679$ 2025 132,649 5,030 137,679 2026 68,785 1,020 69,805 Total 330,170$ 27,691$ 356,895$
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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Loans (Continued)
In December 2021, the City entered into a promissory note in the amount of $5,870,000 for the purchase of land. The note bears interest at 5.9% per annum, with interest due and payable beginning December 2022. The entire principal balance of the note matures on December 27, 2026. The outstanding balance at June 30, 2023 is $5,870,000.
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 these bonds is payable from September 2, 2017, to September 2, 2036. The outstanding balance at June 30, 2023, is $10,870,000.
The bond indenture requires the City to maintain a bond reserve in the amount of $975,606.
To satisfy this requirement, the City purchased as municipal bond insurance policy. The annual requirements to amortize the outstanding indebtedness as of June 30, 2023, are as follows:
Year Ending June 30,Principal Interest Total2024 620,000$ 352,056$ 972,056$ 2025 640,000 333,156 973,156 2026 660,000 313,656 973,656 2027 680,000 293,556 973,556 2028 700,000 269,356 969,356 2029 - 2033 3,925,000 912,057 4,837,057 2034 - 2037 3,645,000 232,266 3,877,266 Total 10,870,000$ 2,706,103$ 13,576,103$
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 facilities. 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, 2023, is $13,255,000.
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JUNE 30, 2023
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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds (Continued)
Public Improvements Project, Issue of 2018 (Continued)
The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The annual requirements to amortize the outstanding indebtedness as of June 30, 2023, are as follows:
Year Ending June 30,Principal Interest Total2024 305,000$ 545,131$ 850,131$ 2025 320,000 529,881 849,881 2026 330,000 520,281 850,281 2027 345,000 503,781 848,781 2028 365,000 486,531 851,531 2029 - 2033 2,115,000 2,140,156 4,255,156 2034 - 2038 2,580,000 1,672,006 4,252,006 2039 - 2043 3,110,000 1,139,600 4,249,600 2044 - 2048 3,785,000 466,200 4,251,200 Total 13,255,000$ 8,003,567$ 21,258,567$
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, 2023, is $44,695,000.
The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The bonds are payable from the revenues pledged, which consist of:
all Measure M Receipts, which consist of certain amounts received by the City from 0.5% retail transactions and use tax that is collected by the County, to the extent that the applicable Project constitutes a Measure M Project; and
all Measure R Receipts, which consist of certain amounts received by the City from 0.5% retail transactions and use tax that is collected by the County through June 30, 2039, to the extent that the applicable Project constitutes a Measure R Project
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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds (Continued)
Street Improvements Project, Issue of 2019 (Continued)
The annual requirements to amortize the outstanding indebtedness as of June 30, 2023, are as follows:
Year Ending June 30,Principal Interest Total2024 825,000$ 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 950,000 1,748,800 2,698,800 2028 1,000,000 1,701,300 2,701,300 2029 - 2033 5,805,000 7,704,000 13,509,000 2034 - 2038 7,195,000 6,316,000 13,511,000 2039 - 2043 10,335,000 4,695,800 15,030,800 2044 - 2048 13,730,000 2,307,600 16,037,600 2049 3,085,000 123,400 3,208,400 Total 44,695,000$ 30,106,800$ 74,801,800$
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, 2023, is $800,000.
Business-Type Activities
Changes in long-term liabilities for the business-type activities for the year ended June 30, 2023, are as follows:
Balance Balance Due Due inJuly 1, 2022 Additions Deletions June 30, 2023 One Year One YearOther Debt:Taxable Revenue RefundingBonds, Series 2021 18,675,000$ -$ 735,000$ 17,940,000$ 785,000$ 17,155,000$ Unamortized Bond Discount (347,381) - 23,454 (323,927) - (323,927) Total Business-Type Activities 18,327,619$ -$ 758,454$ 17,616,073$ 785,000$ 16,831,073$ 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. The 2012A Solar Renewable bonds were refunded in advance with the proceeds from the Taxable Revenue Refunding Bonds, Series 2021.
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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Taxable Revenue Refunding Bonds, Series 2021
On October 1, 2021, the Lancaster Power Authority issued $19,305,000 of Taxable Revenue Refunding Bonds, Series 2021. These bonds were used advance refund the 2012A Solar Renewable Energy Revenue Bonds, purchase a surety bonds for the reserve account, purchase a municipal bond insurance policy and pay costs of issuance. Principal on the bonds is due annually on November 1 and interest payments are due November 1 and April 1 of each year. The advance refunding resulted in cash flow difference of $2.88 million and present value savings of 2.47 million.
The annual requirements to amortize the outstanding indebtedness as of June 30, 2023, are as follows:
Year Ending June 30,Principal Interest Total2024 785,000$ 378,878$ 1,163,878$ 2025 830,000 373,225 1,203,225 2026 945,000 364,041 1,309,041 2027 1,005,000 351,510 1,356,510 2028 1,070,000 335,622 1,405,622 2029 - 2033 6,470,000 1,318,122 7,788,122 2034 - 2037 6,835,000 399,467 7,234,467 Total 17,940,000$ 3,520,865$ 21,460,865$ Leases
The City leases equipment as well as certain operating and office facilities for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through fiscal year 2027-2028.
Total future minimum lease payment are as follows:
Year Ending June 30,Principal Interest Total2024 224,301$ 29,505$ 253,806$ 2025 233,410 18,106 251,516 2026 125,200 9,147 134,347 2027 109,909 3,144 113,053 2028 15,890 55 15,945 Total MinimumLease Payments 708,710$ 59,957$ 768,667$ Governmental Activities
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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Leases (Continued)
Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.
Governmental ActivitiesEquipment357,288$ Vehicles569,900 Less: Accumulated Amortization(219,157) Total708,031$ Subscription-Based Information Technology Arrangements
The City has entered into subscription based-information technology arrangements (SBITAs) for two software applications. The SBITA arrangements expire at various dates through 2026 and provide for renewal options.
As of June 30, 2023, SBITA assets and the related accumulated amortization totaled $3,976,348 and $897,413, respectively.
The future subscription payments under SBITA agreements are as follows:
Year Ending June 30,Principal Interest Total2024 785,792$ 101,951$ 887,743$ 2025 656,826 65,917 722,743 2026 690,431 32,312 722,743 Total MinimumSubscription Payments 2,133,049$ 200,180$ 2,333,229$ Governmental Activities
NOTE 9 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension-related items for the year ended June 30, 2023:
Deferred Deferred PensionPensionOutflows ofInflows of(Income)Liability Resources Resources ExpenseCalPERS Miscellaneous69,105,329$ 21,371,538$ (2,711,886)$ 9,032,577$ PARS4,105,826 667,581 - (166,785) Total 73,211,155$ 22,039,119$ (2,711,886)$ 8,865,792$
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
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 Employees’ Retirement System (CalPERS).
Benefit provisions under the Miscellaneous 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 provisions, 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.
The Miscellaneous Plan’s provisions and benefits in effect at year ended June 30, 2023, are summarized as follows:
Classic Members Classic Members New MembersHired Prior to Hired On or After Hired On or AfterHire Date January 1, 2013 January 1, 2013 January 1, 2013Benefit Formula 2.7% @ 55 2.0% @ 60 2.0% @ 62Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of ServiceBenefit Payments Monthly for Life Monthly for Life Monthly for LifeRetirement 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 11.57% 11.57% 11.57%Payment of Unfunded Liability 5,581,558$ -$ -$ Miscellaneous Plan
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Employees Covered
At the June 30, 2022, measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:
MiscellaneousPlanInactive Employees or Beneficiaries Currently Receiving Benefits 336 Inactive Employees Entitled to But Not Yet Receiving Benefits 508 Active Employees 258 Total 1,102 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, 2023, of $8,632,023.
Net Pension Liability
The City’s net pension liability for the Miscellaneous 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, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2021, actuarial valuations were determined using the following actuarial assumptions:
MiscellaneousPlanValuation Date June 30, 2021Measurement Date June 30, 2022Actuarial Cost Method Entry-Age Normal Cost MethodActuarial Assumptions:Discount Rate 6.90%Inflation 2.3%Projected Salary Increase (1)Mortality Rate Table (2)Post-Retirement Benefit Income (3) (1) Varies by entry age and service.
(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.
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Actuarial Assumptions (Continued)
The expected real rates of return by asset class are as follows:
New Real ReturnStrategic YearsAsset Class Allocation (a)(b)Global Equity - Cap-weighted 30.00 % 4.45 %Global Equity - Non-Cap-weighted 12.00 3.84Private Equity 13.00 7.28Treasury 5.00 0.27Mortgage-backed Securities 5.00 0.50Investment Grade Corporates 10.00 1.56High Yield 5.00 2.27Emerging Market Debt 5.00 2.48Private Debt 5.00 3.57Real Assets 15.00 3.21Leverage (5.00) (0.59)Total 100.00 %(a) An expected inflation of 2.30% used for this period.(b) Figures are based on the 2021 Asset Liability Management study.
Discount Rate
The discount rate used to measure the total pension liability was 6.9%. 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.
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. Public Employees Retirement System (CalPERS) (Continued) General Information about the Pension Plan (Continued)
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan are as follows:
Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)Balance at June 30, 2021 (Measurement Date) 206,399,246$ 162,484,538$ 43,914,708$ Changes in the Year:Service Cost 4,222,786 - 4,222,786 Interest on the Total Pension Liability 14,305,083 - 14,305,083 Changes of Assumptions 7,974,044 - 7,974,044 Differences Between Expected and Actual Experience (4,406,814) - (4,406,814) Contribution - Employer - 7,691,954 (7,691,954) Contribution - Employee - 1,681,343 (1,681,343) Net Investment Income - (12,367,601) 12,367,601 Administrative Expenses - - - Benefit Payments, Including Refunds of Employee Contributions (9,515,662) (9,515,662) - Other Miscellaneous Income (Expense) - (101,218) 101,218 Net Changes 12,579,437 (12,611,184) 25,190,621 Balance at June 30, 2022 (Measurement Date) 218,978,683$ 149,873,354$ 69,105,329$ Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Miscellaneous Plan, calculated using the discount rate of the Miscellaneous 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:
1% Decrease Discount Rate 1% Increase5.90% 6.90% 7.90%Net Pension Liability 99,903,373$ 69,105,329$ 43,832,485$ Pension Plans Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.
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NOTE 9 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 For the year ended June 30, 2023, the City recognized pension expense of $9,032,577. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred DeferredOutflows Inflowsof Resources of ResourcesPension Contributions Subsequent to Measurement Date 8,632,023$ -$ Differences Between Expected and Actual Experience 331,200 (2,711,886) Change in Assumptions 4,907,104 - Net Differences Between Projected and Actual Earnings on Plan Investments 7,501,211 - Total 21,371,538$ (2,711,886)$ Deferred outflows of resources of $8,632,023 that are related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending June 30,Amount2024 2,886,999$ 2025 1,889,212 2026 539,729 2027 4,711,689 2028 - Thereafter - Total 10,027,629$ Payable to the Pension Plans
At June 30, 2023, the City had no outstanding contributions to the CalPERS pension plan required for the year ended June 30, 2023.
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
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 (IRC), 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, 2022, measurement date, there were 68 inactive employees or beneficiaries receiving benefits.
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, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, 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, 2021, actuarial valuation was determined using the following actuarial assumptions:
Valuation Date June 30, 2021Measurement Date June 30, 2022Actuarial Cost Method Entry-Age Normal Level % of PayActuarial Assumptions:Discount Rate 4.27%Inflation 2.50%Investment Rate of Return 5.5%Mortality Assumption for Service CalPERS 2000-2019 Experience Study
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NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Public Employees Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued)
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, 2021, the discount rate was updated from 4.30% to 4.27%.
Discount Rate
The discount rate of 4.27% 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 3.54% at June 30, 2022. In a crossover test, future employer contributions to the trust were assumed to be zero.
The 5.50% long-term expected rate of return was derived based on the inflation assumption of 2.50% and a long-term asset allocation of 50.00% equities, 45% fixed income, and 5% cash equivalent. The geometric real rates of return were assumed to be 4.56% for equities, .78% for fixed income, and (0.50)% 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.
ExpectedTarget Real RateAsset ClassAllocation of ReturnGlobal Equity 50.00 % 4.56 %Fixed Income 45.00 0.78Cash 5.00 (0.50)Total 100.00 %
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NOTE 9 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, 2022, are as follows:
Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)Balance at June 30, 2021 (Measurement Date) 11,875,832$ 9,504,232$ 2,371,600$ Changes in the Year:Service Cost - - - Interest on the Total Pension Liability 494,992 - 494,992 Changes in Benefit Terms - - - Changes in Assumptions 35,169 - 35,169 Differences Between Expected - - and Actual Experience - - - Net Investment Income - (1,187,427) 1,187,427 Administrative Expenses - - - Benefit Payments (728,778) (728,778) - Administrative Expenses - (16,638) 16,638 Net Changes (198,617) (1,932,843) 1,734,226 Balance at June 30, 2022 (Measurement Date) 11,677,215$ 7,571,389$ 4,105,826$ Increase (Decrease)
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:
1% Decrease Discount Rate 1% Increase3.27% 4.27% 5.27%Net Pension Liability (Asset) 5,385,452$ 4,105,826$ 3,021,342$ 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.
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NOTE 9 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 For the year ended June 30, 2023, the City recognized pension expense of $166,785. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred DeferredOutflows Inflowsof Resources of ResourcesNet Differences Between Projected and Actual Earnings on Plan Investments 667,581$ -$ Total 667,581$ -$ Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending June 30,Amount2024 124,864$ 2025 127,557 2026 77,470 2027 337,690 2028 - Thereafter - Total 667,581$ Payable to the Pension Plans
At June 30, 2023, the City had no outstanding contributions to the PARS pension plan required for the year ended June 30, 2023.
NOTE 10 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.
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
General Information about the OPEB Plan (Continued)
The City entered into an agreement with California Employers’ Retiree Benefit Trust (CERBT) to prefund the City’s OPEB liability.
Employees Covered
As of the June 30, 2022, 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 138 Inactive Employees Entitled to But Not Receiving Benefits 1 Active Employees 246 Total 385 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, 2023, the City’s cash contributions were $2,813,547 in payments to the trust and the estimated implicit subsidy was $224,887, resulting in total contributions of $3,038,434.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by using an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.
Actuarial Assumptions
The total OPEB liability as of June 30, 2021, actuarial valuation was determined using the following actuarial assumptions and applied to all periods included in the measurement, unless otherwise specified:
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
Valuation Date June 30, 2021Measurement Date June 30, 2022Actuarial Cost Method Entry-Age Normal Cost MethodActuarial Assumptions:Discount Rate 5.75%Inflation 2.50%Projected Salary Increase Aggregate - 2.75%Expected Long-Term Investment Rate of Return 5.75%Non-Medicare 6.5% for 2023,Health Care Cost Trend Rates decreasing to 3.75% in 2076,Medicare (Non-Kaiser) - 5.65% for2023, decreasing to 3.75% in 2076Medicare (Kaiser)- 4.6% for 2023, Decreasing to 3.75% in 2076Mortality, Retirement, Disability, and Termination Derived from CalPERS 2000-2019Experience Study.
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 inflation) 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-TermStrategic Expected RealAsset ClassAllocation Rate of ReturnCERBTGlobal Equity 34.00 % 4.56 %Fixed Income 41.00 1.56TIPS 5.00 (0.08)REITs 17.00 4.06Commodities 3.00 1.22Total 100.00 % Discount Rate
The discount rate used to measure the total OPEB liability is 5.75%. This is the expected long-term rate of return on City assets using investment strategy 2 within 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 projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long- term expected rate of return.
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:
Total Plan NetOPEB Fiduciary OPEBLiability Net Position LiabilityBalance at June 30, 2021 (Measurement Date) 23,129,441$ 14,420,652$ 8,708,789$ Changes in the Year:Service Cost 416,520 - 416,520 Interest on the Total OPEB Liability 1,262,548 - 1,262,548 Differences Between Actual and Expected Experience - - - Changes in Assumptions (643,491) - (643,491) Changes in Benefit Terms - - - Contribution - Employer 3,027,605 (3,027,605) Net Investment Income - (2,062,879) 2,062,879 Administrative Expenses - (4,093) 4,093 Benefit Payments (1,181,090) (1,181,090) - Net Changes (145,513) (220,457) 74,944 Balance at June 30, 2022 (Measurement Date) 22,983,928$ 14,200,195$ 8,783,733$ Increase (Decrease)
Change of Assumptions
The discount rate changed from 5.50% to 5.75%.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s net 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% Increase4.75% 5.75% 6.75%Net OPEB Liability 11,540,245$ 8,783,733$ 6,472,014$
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Changes in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using health-care cost trend rates that are one percentage point lower (5.5% Non-Medicare, 4.65% Medicare (Non-Kaiser) and
3.60% Medicare (Kaiser)) or one percentage point higher (7.5% Non-Medicare, 6.65% Medicare (Non-Kaiser) and 5.60% Medicare (Kaiser)) than current health-care cost trend rates:
Current HealthCare Cost1% DecreaseTrend Rates1% IncreaseNet OPEB Liability6,141,633$ 8,783,733$ 11,955,534$ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $174,947. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred DeferredOutflows Inflowsof Resources of ResourcesOPEB Contributions Subsequent to Measurement Date 3,038,434$ -$ Differences Between Actual and Expected Experience 727,018 4,107,044 Change in Assumptions - 1,755,978 Differences Between Projected and Actual Earnings 1,316,757 - Total 5,082,209$ 5,863,022$ An amount of $3,038,434, which is reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30,Amount2024 (715,077)$ 2025 (698,942) 2026 (723,848) 2027 (393,549) 2028 (956,681) Thereafter (331,150) Total (3,819,247)$
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Payable to the OPEB Plan
At June 30, 2023, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.
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.
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 $7,690,000 for the purchase of transportation equipment.
Subsequent to the Certificate of Participation issue, the Transit Authority entered into a “Reimbursement Agreement” with the County of Los Angeles to repay the obligation incurred by the County on their behalf.
As of June 30, 2023 (latest information available), Antelope Valley Transit Authority’s financial position was as follows:
Assets 145,938,705$ Deferred Outflow of Resources 2,959,787$ Liabilities 11,061,288$ Deferred Inflows of Resources 28,906$ Net Position 137,808,298$ Revenues 49,543,805$ Expenses 43,302,302 Changes in Net Position 6,241,503$
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NOTE 11 ANTELOPE VALLEY TRANSIT AUTHORITY JOINT VENTURE (CONTINUED) 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.
NOTE 12 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, 2023, $2,550,000 has been accrued for general liability claims. This amount represents an estimate of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience, modified for current trends and information.
While the ultimate amount of losses incurred through June 30, 2023, is dependent on future developments, based upon information from the City Attorney, the City’s claims administrators, and others involved with the administration of the programs, City management believes the accrual is adequate to cover such losses.
Changes in the claims liability amount in fiscal years 2022 and 2023 were as follows:
Beginning of Claims and End ofFiscal Year Changes in Claim Fiscal YearFiscal Year EndedLiability Estimates Payments Liability2021 - 2022 3,113,000$ 602,586$ 661,586$ 3,054,000$ 2022 - 2023 3,054,000 781,000 1,285,000 2,550,000 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.
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NOTE 13 CONTINGENT LIABILITIES
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, 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.
NOTE 14 CONSTRUCTION COMMITMENTS
The following material construction commitments existed at June 30, 2023:
ExpendituresContract to Date as of RemainingProject Name Amount June 30, 2023 Commitments2022 SPRING PMP 4,389,173$ 2,661,269$ 1,727,904$ 2023 PMP - PAVEMENT PRESERVATI 662,323.93 661,333.96 990 ADA COMPLIANCE 160,888.57 134,347.24 26,541 AMARGOSA REC TRAIL 4,644,118.09 141,257.34 4,502,861 ANNUAL LONG LINE STRIPING 78,800.45 5,554.65 73,246 ART IN PUBLIC PLACES 408,950.00 324,002.24 84,948 AVE J GRADE XING 1,222,799.57 31,209.28 1,191,590 AVE J/SR 14 INTERCHANGE 2,812,346.50 1,711,555.98 1,100,791 AVE K GRADE XING 353,360.24 31,357.75 322,002 AVE K/SR 14 INTERCHANGE -MSR R 11,792,593.42 4,788,876.90 7,003,717 AVE M GRADE XING 135,878.64 31,581.59 104,297 AVE M/SR 14 INTERCHANGE -MSR R 7,460,806.98 128,757.31 7,332,050 AVTA BUS STOP IMPROVEMENTS 1,031,380.46 262,000.54 769,380 BOOSTER PUMP IMPROVEMENTS 140,417.00 78,134.46 62,283 CITY BEAUTIFICATION 4,283,283.33 2,283,246.41 2,000,037 CITY HALL FACE LIFT 6,473,041.80 5,404,060.45 1,068,981 CITY HALL IMPROVEMENTS 565,710.41 56,581.63 509,129 CITY HALL RESILIIENCEY/BATTERY 313,490.61 312,125.60 1,365 EL DORADO PARK- PARK IMPROVMTS 7,784,236.46 633,615.16 7,150,621 LANCASTER HEALTH DISTRICT 25,450,711.43 6,344,687.15 19,106,024 LPAC IMPROVEMENTS 1,251,784.76 510,049.95 741,735 MAINTENANCE YARD PARKING LOT 216,769.00 77,325.00 139,444 MARIPOSA PARK 427,826.90 46,659.34 381,168 METRO FENCE REPLACMNT & LANDSC 2,721,073.85 691,563.71 2,029,510 MOAH HVAC IMPROVEMENTS 2,054,265.11 1,989,298.60 64,967 OMP HARDCOURT IMPROVEMENTS 639,995.10 147,223.14 492,772 PARK & RIDE SAFETY IMPROV 761,849.93 691,925.43 69,925 PARK AND FACILITY BUILD RENNO 1,014,925.60 181,457.70 833,468 PARK N RIDE PARKING REFURBISH 1,987,764.91 24,818.67 1,962,946 PEDESTRIAN GAP CLOSURE IMPS 7,647,848.13 5,994,275.41 1,653,573 PRIME DESERT WOODLANDS EXP 25,256.00 18,598.99 6,657 SAFER STREETS ACTION PLAN 1,053,299.84 51,354.50 1,001,945 TRANSPORTATION MANAGEMENT CENT 356,901.00 46,207.05 310,694 VIC DERBY/42ND W CHNNL IMPROV 131,074.20 97,150.70 33,924
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NOTE 15 LANCASTER CHOICE ENERGY
Lancaster Choice Energy (LCE) 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. Due to large sales of Resource Adequacy, payments to LCE from CalChoice for the fiscal year ended June 30, 2023, totaled $1,300,516.
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, 2023, the total payments made by LCE under the take or pay contracts was $64,954,510. At June 30, 2023, the remaining take or pay contracts for LCE is $154,009,491 through December 2036.
NOTE 16 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency of the City of Lancaster Redevelopment Agency on February 1, 2012, as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities.
Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2023, was as follows:
Balance Balance Due Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year than One Year Other Borrowings:
2004 County Fire 1,530,000$ -$ 750,000$ 780,000$ 780,000$ -$ 2004 County - Sheriff 3,275,000 - 1,595,000 1,680,000 1,680,000 - 2015 Housing A&B 18,355,000 - 1,085,000 17,270,000 1,120,000 16,150,000 2017 Housing 53,175,000 - 2,645,000 50,530,000 2,785,000 47,745,000 2016 A-1 & A-2
Non-Housing 47,340,000 - 2,870,000 44,470,000 2,965,000 41,505,000 2016 B-1 & B-2
Non-Housing 13,690,000 - 730,000 12,960,000 765,000 12,195,000 2021 Lease Revenue Bonds 3,644,000 - 228,000 3,416,000 232,000 3,184,000 Total Successor Agency 141,009,000 - 9,903,000 131,106,000 10,327,000 120,779,000 Unamortized Original Issue
(Discount) or Premium 9,725,923 - 677,323 9,048,600 - 9,048,600 Net Long-Term Debt 150,734,923$ -$ 10,580,323$ 140,154,600$ 10,327,000$ 129,827,600$
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NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 16 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
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, 2023, is $780,000.
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, 2023, is $1,680,000.
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, 2023, is $17,270,000.
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, 2023, is $50,530,000.
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NOTE 16 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Combined Tax Allocation Notes and Bonds (Continued)
e. 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, 2023, is $44,470,000.
f. 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, 2023, is $12,960,000.
g. On July 23, 2021, the Lancaster Financing Authority issued $3,805,000 of 2021 Lease Revenue Refunding Bonds. This financing was undertaken to advance refund $4,035,000 in outstanding Agency debt. The principal portion of these bonds is payable from December 1, 2021 to 2035. Interest is payable semiannually on June 1 and December 1 of each year, commencing on December 1, 2021. The outstanding balance at June 30, 2023, is $3,416,000.
The annual requirements to amortize the outstanding bond indebtedness for the Lancaster Redevelopment Agency Bonds and Notes, as of June 30, 2023, including interest, are as follows:
Year Ending June 30,Principal Interest Total2024 10,327,000$ 5,125,806$ 15,452,806$ 2025 8,191,000 4,714,674 12,905,674 2026 8,235,000 4,346,622 12,581,622 2027 8,593,000 3,975,233 12,568,233 2028 10,022,000 3,733,780 13,755,780 2029 - 2033 49,503,000 11,967,781 61,470,781 2034 - 2038 32,480,000 2,823,507 35,303,507 2039 - 2041 3,755,000 121,575 3,876,575 Total 131,106,000$ 36,808,978$ 167,914,978$
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NOTE 16 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 $167,914,978 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 $16,082,811 and the debt service obligation on the bonds was $15,171,425 broken down as follows:
Received inFY 22/23Scope of Fund Recognized by Successor Agency for enforceable Obligations:Redevelopment Property Tax Trust Funds (RPTTF) 13,613,013$ Pass-Through Funds Remitted by Los Angeles County Fire and Sheriff 2,469,798 Total Funds Recognized by the Successor Agency Available for the Payment of Debt Services 16,082,811$ Debt Service ObligationsDue in FY 2022/2023 Principal Due Interest Due TotalNon-Housing, Housing, and School Bus (RPTTF) 7,330,000$ 5,314,800$ 12,644,800$ County Fire and Sheriff Bonds (Paid From Fire and Sheriff Pass-Through Funds) 2,345,000 181,625 2,526,625 Total Successor Agency Debt Service Obligations FY 22/23 9,675,000$ 5,496,425$ 15,171,425$
CITY OF LANCASTER
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(83)
NOTE 16 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, 2023, is $7,912,442. The Successor Agency made repayments totaling $699,903 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, 2023, totals $24,211,962. The total amount due to the City and Housing Authority from the Successor Agency on these prior advances is $56,223,060. No repayments were made during the current fiscal year and accrued unpaid interest of $960,364 was added to the advance balance.
Defeasance of Debt
In prior years, the Agency defeased certain tax allocation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Agency’s financial statements.
At June 30, 2023, the following defeased bond issues are still outstanding:
OutstandingAmountThe Combined Housing Financing Bonds 2003 Issue 2,265,000$ Tax Allocation Bonds (Housing Programs) 2009 Issue 20,620,000 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, 2023
(84)
NOTE 16 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 12.
NOTE 17 DEFERRED COMPENSATION PLAN
The City has made available to its regular employees and mandatory for its temporary employees an 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 18 DEFINED CONTRIBUTION PLAN
The City provides a tax-qualified retirement savings plan under Section 401(a) of the IRC 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 298 participants in the Plan for the year ended June 30, 2023. Employer contributions are based on an employee’s tier of eligibility. For the year ended June 30, 2023, employer contributions totaled $1,445,725. 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, 2023
(85)
NOTE 19 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 287 individuals in the RHSP at June 30, 2023. Employer contributions for the year ended June 30, 2023, totaled $662,142.
As with the other ICMA plans, assets of the RHSP are held in trust, eligible for withdrawal upon termination of employment, are not assets of the City, and are not reflected in the financial statements.
NOTE 20 RESTATEMENT
Net Position and Fund Balances as of July 1, 2022 were restated as follows:
LancasterGovernmentalGeneral Housing ActivitiesFundAuthorityNet Position/Fund Balance - Beginning of Year, as Previously Reported, July 1, 20221,036,415,215$ 121,911,511$ 76,986,214$ Increase (Decrease) in Net Position/Fund Balance for Land acquisition recorded in the General Fund- 3,000,000 (3,000,000) Increase in Net Position for Land Acquisition9,800,000 - - Decrease in Net Position for entering into a Promissory Note for the Land Acquisition(5,870,000) Increase in Net Position for previously expensed CIP1,429,091 - - Decrease in Net Position for CIP that should have been previously expensed.(14,159,755) - - Net Position/Fund Balance - Beginning of Year, as Restated, July 1, 2022 1,027,614,551$ 124,911,511$ 73,986,214$
NOTE 21 SUBSEQUENT EVENTS
On July 11, 2023, the Lancaster City Council authorized the City Manager, or his designee, to finalize terms, modify and execute a subordination agreement with respect to the $3,412,500.00 Lancaster Redevelopment Agency Loan and a $4,024,440.00 HCD loan, allowing Laurel Crest, L.P. to proceed with mortgage refinance of senior loan for Laurel Crest Apartments.
Effective January 2024, California Choice Energy Authority is no longer a blended component unit of the City.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS CalPERS PENSION PLANS
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(88)
Fiscal Year EndedJune 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019Measurement Period EndedJune 30, 2022June 30, 2021June 30, 2020June 30, 2019June 30, 2018Total Pension Liability:Service Cost4,222,786$ 3,835,000$ 3,812,712$ 3,984,412$ 4,089,766$ Interest on Total Pension Liability14,305,083 13,947,225 13,228,411 12,492,922 11,749,454 Differences Between Expected and Actual Experience(4,406,814) 1,656,000 1,608,904 1,303,631 925,375 Changes in Assumptions7,974,044 - - - (1,119,628) Benefit Payments, Including Refunds of Employee Contributions(9,515,662) (9,063,152) (8,246,671) (7,180,971) (6,203,088) Net Change in Total Pension Liability12,579,437 10,375,073 10,403,356 10,599,994 9,441,879 Total Pension Liability - Beginning of Year206,399,246 196,024,173 185,620,817 175,020,823 165,578,944 Total Pension Liability - End of Year (a)218,978,683$ 206,399,246$ 196,024,173$ 185,620,817$ 175,020,823$ Plan Fiduciary Net Position:Contributions - Employer7,691,954$ 6,735,805$ 6,104,781$ 5,376,086$ 4,949,350$ Contributions - Employee1,681,343 1,518,908 1,680,632 1,594,327 1,606,648 Net Investment Income (Loss)(12,367,601) 30,324,328 6,427,646 7,935,508 9,429,980 Benefit Payments(9,515,662) (9,063,152) (8,246,671) (7,180,971) (6,203,088) Net Plan to Plan Resource Movement- - - 277 (277) Administrative and Other Expense(101,218) (132,960) (179,482) (85,403) (498,688) Net Change in Plan Fiduciary Net Position(12,611,184) 29,382,929 5,786,906 7,639,824 9,283,925 Plan Fiduciary Net Position - Beginning of Year162,484,538 133,101,609 127,314,703 119,674,879 110,390,954 Plan Fiduciary Net Position - End of Year (b)149,873,354$ 162,484,538$ 133,101,609$ 127,314,703$ 119,674,879$ Net Pension Liability (Asset) - Ending (a)-(b)69,105,329$ 43,914,708$ 62,922,564$ 58,306,114$ 55,345,944$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability68.44%78.72%67.90%68.59%68.38%Covered Payroll26,429,406$ 23,010,769$ 20,370,100$ 19,995,467$ 20,482,128$ Net Pension Liability as Percentage of Covered Payroll261.47%190.84%308.90%291.60%270.22%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 planinvestment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% usedfor the June 30, 2014, measurement date was net of administrative expenses. The discount rate of 7.65% used forthe 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.From fiscal year June 30, 2021, to June 30, 2022:There were no significant changes in assumptions.From fiscal year June 30, 2022, to June 30, 2023:The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from 2.5% to 2.3%.* Fiscal year 2015 was the first year of implementation, and therefore, only nine 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, 2023
(89)
Fiscal Year EndedJune 30, 2018June 30, 2017June 30, 2016June 30, 2015Measurement Period EndedJune 30, 2017June 30, 2016June 30, 2015June 30, 2014Total Pension Liability:Service Cost4,120,166$ 3,757,280$ 3,659,838$ 3,783,673$ Interest on Total Pension Liability11,094,780 10,446,457 9,650,056 9,015,665 Differences Between Expected and Actual Experience(449,010) 1,362,060 (445,730) - Changes in Assumptions9,732,561 - (2,517,116) - Benefit Payments, Including Refunds of Employee Contributions(5,495,333) (4,608,628) (4,011,772) (3,666,038) Net Change in Total Pension Liability19,003,164 10,957,169 6,335,276 9,133,300 Total Pension Liability - Beginning of Year146,575,780 135,618,611 129,283,335 120,150,035 Total Pension Liability - End of Year (a)165,578,944$ 146,575,780$ 135,618,611$ 129,283,335$ Plan Fiduciary Net Position:Contributions - Employer4,609,250$ 4,077,018$ 3,803,574$ 3,549,119$ Contributions - Employee1,558,516 1,628,815 1,611,229 1,556,684 Net Investment Income (Loss)11,061,811 535,654 2,090,380 13,752,204 Benefit Payments(5,495,333) (4,608,628) (4,011,772) (3,666,038) Net Plan to Plan Resource Movement- - - - Administrative and Other Expense(145,875) (59,256) (109,427) - Net Change in Plan Fiduciary Net Position11,588,369 1,573,603 3,383,984 15,191,969 Plan Fiduciary Net Position - Beginning of Year98,802,585 97,228,982 93,844,998 78,653,029 Plan Fiduciary Net Position - End of Year (b)110,390,954$ 98,802,585$ 97,228,982$ 93,844,998$ Net Pension Liability (Asset) - Ending (a)-(b)55,187,990$ 47,773,195$ 38,389,629$ 35,438,337$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability66.67%67.41%71.69%72.59%Covered Payroll19,501,764$ 19,428,612$ 19,407,546$ 19,312,337$ Net Pension Liability as Percentage of Covered Payroll282.99%245.89%197.81%183.50%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 planinvestment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% usedfor the June 30, 2014, measurement date was net of administrative expenses. The discount rate of 7.65% used forthe 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.From fiscal year June 30, 2021, to June 30, 2022:There were no significant changes in assumptions.From fiscal year June 30, 2022, to June 30, 2023:The discount rate and long-term rate of return decreased from 7.15% to 6.9% and the inflation rate decreased from 2.5% to 2.3%.* Fiscal year 2015 was the first year of implementation, and therefore, only nine years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(90)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019Actuarially Determined Contribution 8,632,023$ 7,699,142$ 6,735,678$ 6,104,781$ 5,376,086$ Contributions in Relation to the Actuarially Determined Contributions (8,632,023) (7,699,142) (6,735,678) (6,104,781) (5,376,086) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll 23,010,769$ 20,370,100$ 20,158,000$ 20,370,100$ 19,995,467$ Contributions as a Percentage of Covered Payroll 37.51% 37.80% 33.41% 29.92% 26.81%Notes to Schedule:Valuation Date6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016Methods and Assumptions Used to Determine Contribution Rates:Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation2.30% 2.75% 2.75% 2.75% 2.75%Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 6.90% (3) 7.375% (3) 7.375% (3) 7.375% (3) 7.375% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (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 Studyadopted by the CalPERS Board.* Fiscal year 2015 was the first year of implementation, and therefore, only nine years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(91)
Fiscal Year Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015Actuarially Determined Contribution 4,949,350$ 4,609,250$ 4,077,018$ 3,803,574$ Contributions in Relation to the Actuarially Determined Contributions (4,949,350) (4,609,250) (4,077,018) (3,803,574) Contribution Deficiency (Excess)-$ -$ -$ -$ Covered Payroll 20,482,128$ 19,501,764$ 19,428,612$ 19,407,546$ Contributions as a Percentage of Covered Payroll 24.16% 22.71% 20.96% 19.60%Notes to Schedule:Valuation Date6/30/2015 6/30/2014 6/30/213 6/30/2012Methods 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 Smoothed Market Method Inflation2.75% 2.75% 2.75% 2.75%Salary Increases (2) (2) (2) (2) Investment Rate of Return 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) Mortality (5) (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, 2023
(92)
Fiscal Year EndedJune 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019Measurement Period EndedJune 30, 2022June 30, 2021June 30, 2020June 30, 2019June 30, 2018Total Pension Liability:Service Cost-$ -$ -$ 1,569$ 1,577$ Interest on Total Pension Liability494,992 481,917 545,037 569,756 568,236 Differences Between Expected and Actual Experience- - - 134,522 - Changes in Assumptions35,169 (670,041) 1,173,341 439,122 (188,575) Changes in benefits- (163,673) - - - Benefit Payments, Including Refunds of Employee Contributions(728,778) (710,129) (705,047) (694,049) (678,957) Net Change in Total Pension Liability(198,617) (1,061,926) 1,013,331 450,920 (297,719) Total Pension Liability - Beginning of Year11,875,832 12,937,758 11,924,427 11,473,507 11,771,226 Total Pension Liability - End of Year (a)11,677,215$ 11,875,832$ 12,937,758$ 11,924,427$ 11,473,507$ Plan Fiduciary Net Position:Contributions - Employer-$ -$ -$ -$ -$ Contributions - Employee- - - - - Net Investment Income (Loss)(1,187,427) 1,786,017 262,205 536,880 551,796 Administrative Expense(16,638) (16,893) (16,793) (17,313) (18,115) Benefit Payments(728,778) (710,129) (705,047) (694,049) (678,957) Net Change in Plan Fiduciary Net Position(1,932,843) 1,058,995 (459,635) (174,482) (145,276) Plan Fiduciary Net Position - Beginning of Year9,504,232 8,445,237 8,904,872 9,079,354 9,224,630 Plan Fiduciary Net Position - End of Year (b)7,571,389$ 9,504,232$ 8,445,237$ 8,904,872$ 9,079,354$ Net Pension Liability (Asset) - Ending (a)-(b)4,105,826$ 2,371,600$ 4,492,521$ 3,019,555$ 2,394,153$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability64.84%80.03%65.28%74.68%79.13%Covered PayrollNoneNoneNoneNoneNoneNet Pension Liability as Percentage of Covered PayrollN/AN/AN/AN/AN/ANotes 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 butwithout 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 planadministrative 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%From fiscal year June 30, 2021, to June 30, 2022:The discount rate was updated from 3.83% to 4.30% and mortality improvement scale was updated to Scale MP-2021.From fiscal year June 30, 2022, to June 30, 2023:The discount rate was updated from 4.30% to 4.27%.* Fiscal year 2015 was the first year of implementation, and therefore, only nine 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, 2023
(93)
Fiscal Year EndedJune 30, 2018June 30, 2017June 30, 2016June 30, 2015Measurement Period EndedJune 30, 2017June 30, 2016June 30, 2015June 30, 2014Total Pension Liability:Service Cost1,485$ 1,000$ 1,000$ 1,000$ Interest on Total Pension Liability578,723 636,000 605,000 607,000 Differences Between Expected and Actual Experience89,030 - 156,000 - Changes in Assumptions(161,368) 1,837,000 350,000 - Changes in benefits- - - - Benefit Payments, Including Refunds of Employee Contributions(665,644) (652,000) (640,000) (627,000) Net Change in Total Pension Liability(157,774) 1,822,000 472,000 (19,000) Total Pension Liability - Beginning of Year11,929,000 10,107,000 9,635,000 9,654,000 Total Pension Liability - End of Year (a)11,771,226$ 11,929,000$ 10,107,000$ 9,635,000$ Plan Fiduciary Net Position:Contributions - Employer-$ -$ -$ -$ Contributions - Employee- - - - Net Investment Income (Loss)881,421 (108) 230,000 1,204,000 Administrative Expense(18,063) (23,332) (20,000) (20,000) Benefit Payments(665,644) (665,644) (640,000) (627,000) Net Change in Plan Fiduciary Net Position197,714 (689,084) (430,000) 557,000 Plan Fiduciary Net Position - Beginning of Year9,026,916 9,716,000 10,146,000 9,589,000 Plan Fiduciary Net Position - End of Year (b)9,224,630$ 9,026,916$ 9,716,000$ 10,146,000$ Net Pension Liability (Asset) - Ending (a)-(b)2,546,596$ 2,902,084$ 391,000$ (511,000)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability78.37%75.67%96.13%105.30%Covered PayrollNoneNoneNoneNoneNet Pension Liability as Percentage of Covered PayrollN/AN/AN/AN/A
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
PARS PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(94)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019Actuarially Determined Contribution 234,572$ 217,689$ 233,631$ 311,000$ 337,000$ Contributions in Relation to the Actuarially Determined Contributions - - - - - Contribution Deficiency (Excess) 234,572$ 217,689$ 233,631$ 311,000$ 337,000$ Covered Payroll None None None None NoneContributions as a Percentage of Covered Payroll N/A N/A N/A N/A N/ANotes to Schedule:Valuation Date6/30/2021 6/30/2021 6/30/2019 6/30/2017 6/30/2017Methods and Assumptions Used to Determine Contribution Rates:Single and Agent EmployersEntry Age Entry Age Entry Age Entry Age Entry AgeNormal Normal Normal Normal NormalAmortization MethodLevel Dollar Level Dollar Level Dollar Level Dollar Level DollarRemaining Amortization Period10 Years Open 10 Years Open 10 Years Open 10 Years Open 10 Years OpenAsset Valuation MethodMarket Value Market Value Market Value Market Value Market ValueInflation2.50% 2.50% 2.75% 2.75% 2.75%Salary Scale:Aggregate3.00% 3.00% 3.00% 3.00% 3.00%Merit (CalPERS Experience Study) 2000-2019 2000-2019 1997-2015 1997-2015 1997-2015Investment Rate of Return:06/30/21 Valuation 5.5%, net of investment expenses only06/30/19 Valuation 6.0%, net of investment expenses only06/30/17 Valuation 6.5%, net of investment expenses only06/30/15 Valuation 6.5%, net of investment expenses only06/30/13 Valuation 6.25%, net of investment and administrative expensesMortality Assumptions for Service Retirements and Beneficiaries:06/30/21 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2021.06/30/19 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 convergeto ultimate improvement rates in 2022.06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generationalwith Scale AA.Mortality Assumptions for Disability Retirements:06/30/22 Measurement Date CalPERS 2000-2019 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2021.06/30/21 Valuation CalPERS 2000-2019 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2019.06/30/17 and 6/30/19 Valuation CalPERS 1997-2015 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2017.06/30/15 Valuation CalPERS 1997-2011 Experience Study Mortality Table for nonwork DisabledRetirees projected fully generational with Scale MP-2014 modified to convergeto ultimate improvement rates in 2022.06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generationalwith Scale AA.* Fiscal year 2015 was the first year of implementation, and therefore, only nine years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS
PARS PENSION PLAN (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(95)
Fiscal Year Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015Actuarially Determined Contribution 89,000$ 93,000$ 52,000$ -$ Contributions in Relation to the Actuarially Determined Contributions - - - - Contribution Deficiency (Excess) 89,000$ 93,000$ 52,000$ -$ Covered Payroll None None None NoneContributions as a Percentage of Covered Payroll N/A N/A N/A N/ANotes to Schedule:Valuation Date6/30/2015 6/30/2015 6/30/213 6/30/213 Methods and Assumptions Used to Determine Contribution Rates:Single and Agent EmployersEntry Age Entry Age Entry Age Entry AgeNormal Normal Normal NormalAmortization MethodLevel Dollar Level Dollar Level Dollar Level DollarRemaining Amortization Period10 Years Open 10 Years Open 10 Years Closed 10 Years OpenAsset Valuation Method Market Value Market Value Market Value Market ValueInflation3.00% 3.00% 3.00% 3.00%Salary Scale:Aggregate3.25% 3.25% 3.25% 3.25%Merit (CalPERS Experience Study)1997-2011 1997-2011 1997-2007 1997-2007Investment Rate of Return:06/30/21 Valuation 5.5%, net of investment expenses only06/30/19 Valuation 6.0%, net of investment expenses only06/30/17 Valuation 6.5%, net of investment expenses only06/30/15 Valuation 6.5%, net of investment expenses only06/30/13 Valuation 6.25%, net of investment and administrative expensesMortality Assumptions for Service Retirements and Beneficiaries:06/30/21 Valuation Mortality Table projected fully generational with Society of Actuaries Scale MP-2021.06/30/19 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 convergeto ultimate improvement rates in 2022.06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generationalwith Scale AA.Mortality Assumptions for Disability Retirements:06/30/22 Measurement Date CalPERS 2000-2019 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2021.06/30/21 Valuation CalPERS 2000-2019 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2019.06/30/17 and 6/30/19 Valuation CalPERS 1997-2015 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2017.06/30/15 Valuation CalPERS 1997-2011 Experience Study Mortality Table for nonwork DisabledRetirees projected fully generational with Scale MP-2014 modified to convergeto ultimate improvement rates in 2022.06/30/13 Valuation CalPERS 1997-2007 Experience Study, Mortality projected fully generationalwith Scale AA.* Fiscal year 2015 was the first year of implementation, and therefore, only nine years are shown.
CITY OF LANCASTER
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(96)
Fiscal Year End6/30/20236/30/20226/30/20216/30/20206/30/20196/30/2018Measurement Date6/30/20226/30/20216/30/20206/30/20196/30/20186/30/2017Total OPEB Liability:Service Cost416,520$ 556,718$ 544,912$ 514,497$ 549,862$ 533,847$ Interest on Total OPEB Liability1,262,548 1,747,735 1,711,964 1,640,380 1,574,306 1,500,990 Change in Assumption(643,491) (358,865) (498,407) (1,320,939) - - Difference Between Expected and Actual Experience- (5,656,872) - 1,492,298 - - Benefit Payments, Including Refunds of Employee Contributions(1,181,090) (1,132,629) (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Total OPEB Liability(145,513) (4,843,913) 495,226 1,166,861 1,220,288 1,183,104 Total OPEB Liability - Beginning of Year23,129,441 27,973,354 27,478,128 26,311,267 25,090,979 23,907,875 Total OPEB Liability - End of Year (a)22,983,928 23,129,441 27,973,354 27,478,128 26,311,267 25,090,979 Plan Fiduciary Net Position:Contributions - Employer3,027,605 1,132,629 2,451,000 2,973,720 2,521,850 2,757,002 Net Investment Income(2,062,879) 2,423,434 652,096 717,403 470,766 400,018 Administrative Expenses(4,093) (4,425) (6,167) (2,205) (11,481) (3,027) Benefit Payments(1,181,090) (1,132,629) (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Plan Fiduciary Net Position(220,457) 2,419,009 1,833,686 2,529,543 2,077,255 2,302,260 Plan Fiduciary Net Position - Beginning of Year14,420,652 12,001,643 10,167,957 7,638,414 5,561,159 3,258,899 Plan Fiduciary Net Position - End of Year (b)14,200,195 14,420,652 12,001,643 10,167,957 7,638,414 5,561,159 Net OPEB Liability - Ending (a)-(b)8,783,733$ 8,708,789$ 15,971,711$ 17,310,171$ 18,672,853$ 19,529,820$ Plan Fiduciary Net Position as a Percentage of the Net OPEB Liability61.78%62.35%42.90%37.00%29.03%22.16%Covered - Employee Payroll24,544,346$ 21,125,169$ 20,370,100$ 21,066,497$ 19,015,391$ 20,878,494$ Net OPEB Liability as Percentage of Covered - Employee Payroll35.79%41.22%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, 2018, to June 30, 2019:Mortality improvement scale was updated to Scale MP-2019Assumed plan elections at retirement were updatedSpousal coverage assumption was updated from 50% to 30%From fiscal year June 30, 2021, to June 30, 2022:Inflation changed from 2.75% to 2.5%Medicare advantage plan removedMortality improvement scale was updated to Scale MP-2021From fiscal year June 30, 2022, to June 30, 2023:Discount rate changed from 5.50% to 5.75%Inflation changed from 2.75% to 2.5%Medicare broken out for Non-Kaiser and Kaiser* Fiscal year 2018 was the first year of implementation, and therefore, only six years are shown.
CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS – OPEB
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2023
(97)
Fiscal Year EndedJune 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019June 30, 2018Contractually Required Contribution (Actuarially Determined)1,099,938$ 1,846,515$ 1,985,527$ 1,973,000$ 2,009,000$ 2,099,000$ Contributions in Relation to the Actuarially Determined Contributions(3,038,434) (3,027,604) (1,132,629) (2,451,000) (2,973,720) (2,521,850) Contribution Deficiency (Excess) (1,938,496)$ (1,181,089)$ 852,898$ (478,000)$ (964,720)$ (422,850)$ Covered - Employee Payroll26,906,110$ 24,544,346$ 21,125,169$ 20,370,100$ 21,066,497$ 19,015,391$ Contributions as a Percentage of Covered - Employee Payroll11.30%12.30%5.36%12.03%14.12%13.26%Notes to Schedule:Valuation Date6/30/20216/30/20196/30/20196/30/20176/30/20176/30/2015Methods and Assumptions Used to Determine Contribution Rates:Single and Agent EmployersEntry AgeEntry AgeEntry AgeEntry AgeEntry ageEntry ageAmortization MethodLevel DollarLevel DollarLevel DollarLevel DollarLevel dollarLevel dollarAmortization Period22 Year Fixed23 Year Fixed24 Year Fixed25 Year Fixed26 Year Fixed27 Year FixedPeriodPeriodPeriodPeriodPeriodPeriodInflation2.50%2.75%2.75%2.75%2.75%3.00%MortalityCalPERSCalPERSCalPERSCalPERSCalPERSCalPERS2000-20191997-20151997-20151997-20151997-20151997-2011ExperienceExperienceExperienceExperienceExperienceExperienceMortality ImprovementsMortalityMortalityMortalityMortalityMortalityMortalityProjected FullyProjected FullyProjected FullyProjected FullyProjected FullyProjected FullyGenerationalGenerationalGenerationalGenerationalGenerationalGenerationalWith ScaleWith ScaleWith ScaleWith ScaleWith ScaleWith ScaleMP-2021MP-2019MP-2019MP-2017MP-2017MP-2014Health Care Trend Rates:06/30/15 ValuationNon-Medicare 7.50% decreasing to 5.00% in 2021, Medicare 7.80% decreasing toNon-Medicare 7.50% decreasing to 5.00% in 2021, Medicare 7.80% decreasing to5.00% in 2021.5.00% in 2021.06/30/17 ValuationNon-Medicare 7.50% decreasing to 4.00% in 2076, Medicare 6.50% decreasing toNon-Medicare 7.50% decreasing to 4.00% in 2076, Medicare 6.50% decreasing to4.00% in 2076.4.00% in 2076.06/30/19 ValuationNon-Medicare 7.25% decreasing to 4.00% in 2076, Medicare 6.30% decreasing toNon-Medicare 7.25% decreasing to 4.00% in 2076, Medicare 6.30% decreasing to4.00% in 2076.4.00% in 2076.06/30/21 ValuationNon-Medicare 6.50% decreasing to 3.75% in 2076, Medicare(Non-Kaiser) 5.65% decreasing to3.75% in 2076, Medicare(Kaiser) 4.60% decreasing to 3.75% in 2076.* Fiscal year 2018 was the first year of implementation, and therefore, only six years are shown.
(98)
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(99)
SUPPLEMENTARY INFORMATION
(100)
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(101)
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2023
(102)
Landscape Housing and Community Maintenance Community Gas Tax Services District DevelopmentASSETSPooled Cash and Investments 2,847,836$ 98,126$ 1,744,187$ 2,760,367$ Receivables:Accounts 93,836 2,500 - - Taxes 1,485,378 - 34,504 - Accrued Interest 12,506 - - - Due from Other Governments - - - 188,469 Notes and Loans, Net - - - - Prepaid Items 171,207 - - - Land Held for Resale - - - 224,766 Total Assets 4,610,763$ 100,626$ 1,778,691$ 3,173,602$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 742,868$ 11,228$ 399,114$ 74,503$ Accrued Liabilities 178,614 - 7,379 1,974 Unearned Revenues - - - - Due to Other Funds - - - - Total Liabilities 921,482 11,228 406,493 76,477 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 57,275 - - 188,469 Total Deferred Inflows of Resources 57,275 - - 188,469 FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items 171,207 - - - Restricted:Community Development Projects - 89,398 - 2,908,656 Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services 3,460,799 - 1,372,198 - Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Unassigned - - - - Total Fund Balances (Deficits) 3,632,006 89,398 1,372,198 2,908,656 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 4,610,763$ 100,626$ 1,778,691$ 3,173,602$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(103)
HOME BikewayProgram Proposition A Improvement Proposition CASSETSPooled Cash and Investments 1,029,603$ 5,176,525$ -$ 9,368,240$ Receivables:Accounts 1,454 - - - Taxes - - - - Accrued Interest - 8,761 - 15,855 Due from Other Governments - - 201,185 - Notes and Loans, Net 590,060 - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 1,621,117$ 5,185,286$ 201,185$ 9,384,095$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 18,616$ -$ -$ Accrued Liabilities - - - - Unearned Revenues - - - - Due to Other Funds - - 183,913 - Total Liabilities - 18,616 183,913 - DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - - - - Total Deferred Inflows of Resources - - - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services - 5,166,670 17,272 9,384,095 Housing and Neighborhood Revitalization 1,621,117 - - - Capital Projects - - - - Unassigned - - - - Total Fund Balances (Deficits) 1,621,117 5,166,670 17,272 9,384,095 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,621,117$ 5,185,286$ 201,185$ 9,384,095$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(104)
DeveloperFederal State Parks Fees -Grants Grants Development SignalsASSETSPooled Cash and Investments -$ -$ 524,577$ 2,820,315$ Receivables:Accounts 3,148,727 200,763 - 98,058 Taxes - - - - Accrued Interest - 620 - - Due from Other Governments 799,130 1,360,855 - - Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 3,947,857$ 1,562,238$ 524,577$ 2,918,373$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 154,842$ -$ -$ Accrued Liabilities - 22,379 - - Unearned Revenues - 307,228 - 98,058 Due to Other Funds 4,021,889 1,021,443 - - Total Liabilities 4,021,889 1,505,892 - 98,058 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 3,915,549 1,532,874 - - Total Deferred Inflows of Resources 3,915,549 1,532,874 - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - 524,577 - Development Services - - - 2,820,315 Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Unassigned (3,989,581) (1,476,528) - - Total Fund Balances (Deficits) (3,989,581) (1,476,528) 524,577 2,820,315 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 3,947,857$ 1,562,238$ 524,577$ 2,918,373$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(105)
Developer Biological TrafficFees - Recycled Impact ImpactDrainage Water Fees FeesASSETSPooled Cash and Investments 10,957,159$ 45,961$ 927,888$ 1,754,861$ Receivables:Accounts 234,028 22,651 - 210,494 Taxes - - - - Accrued Interest - - - - Due from Other Governments - - - - Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 11,191,187$ 68,612$ 927,888$ 1,965,355$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 14,647$ -$ -$ Accrued Liabilities - 3,473 - - Unearned Revenues 234,028 - - 210,494 Due to Other Funds - - - - Total Liabilities 234,028 18,120 - 210,494 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - - - - Total Deferred Inflows of Resources - - - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - 50,492 - - Development Services 10,957,159 - 927,888 1,754,861 Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Unassigned - - - - Total Fund Balances (Deficits) 10,957,159 50,492 927,888 1,754,861 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 11,191,187$ 68,612$ 927,888$ 1,965,355$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(106)
LancasterDrainageMaintenance Miscellaneous Traffic AQMD District Grants SafetyASSETSPooled Cash and Investments 11,690$ 1,758,832$ 505$ 284,928$ Receivables:Accounts 17,750 - - - Taxes - 26,610 - - Accrued Interest - - - - Due from Other Governments - - - - Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 29,440$ 1,785,442$ 505$ 284,928$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 4,875$ 125,236$ -$ -$ Accrued Liabilities - 32,688 - - Unearned Revenues - - - - Due to Other Funds - - - - Total Liabilities 4,875 157,924 - - DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - - - - Total Deferred Inflows of Resources - - - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - 505 - Public Safety - - - 284,928 Parks, Recreation, and Arts - - - - Development Services 24,565 1,627,518 - - Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Unassigned - - - - Total Fund Balances (Deficits) 24,565 1,627,518 505 284,928 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 29,440$ 1,785,442$ 505$ 284,928$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(107)
Zero-Net Energy Solar Urban Mitigation LA County StructureIn Lieu Reimbursement MTA Grant ProgramASSETSPooled Cash and Investments 106,700$ 10,101$ -$ 1,775,188$ Receivables:Accounts - - 188,809 24,275 Taxes - - - - Accrued Interest - 17 - - Due from Other Governments - 228,784 1,446,198 - Notes and Loans, Net - - - - Prepaid Items - - - - Land Held for Resale - - - - Total Assets 106,700$ 238,902$ 1,635,007$ 1,799,463$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 215,799$ -$ -$ Accrued Liabilities - - - - Unearned Revenues - 49,995 - 24,275 Due to Other Funds - - 889,184 - Total Liabilities - 265,794 889,184 24,275 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - 228,784 1,631,183 - Total Deferred Inflows of Resources - 228,784 1,631,183 - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - 1,775,188 Development Services 106,700 - - Housing and Neighborhood Revitalization - - - - Capital Projects - - - - Unassigned - (255,676) (885,360) - Total Fund Balances (Deficits) 106,700 (255,676) (885,360) 1,775,188 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 106,700$ 238,902$ 1,635,007$ 1,799,463$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(108)
SewerMariposa Maintenance Proposition Proposition Lily District 1B 42 Measure RASSETSPooled Cash and Investments 62,733$ 1,829,695$ 6,142$ 46,543$ -$ Receivables:Accounts - 1,592 - - 4,135,813 Taxes - 68,581 - - - Accrued Interest - - 10 - 1,099 Due from Other Governments - - - - 3,740,616 Notes and Loans, Net - - - - - Prepaid Items - 1,332 - - - Land Held for Resale - - - - - Total Assets 62,733$ 1,901,200$ 6,152$ 46,543$ 7,877,528$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 240,676$ -$ -$ 1,400,121$ Accrued Liabilities - 91,334 - - - Unearned Revenues - - - - - Due to Other Funds - - - - 2,960,918 Total Liabilities - 332,010 - - 4,361,039 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - - - - 7,840,646 Total Deferred Inflows of Resources - - - - 7,840,646 FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - 1,332 - - - Restricted:Community Development Projects - - - - - Public Safety - - - - - Parks, Recreation, and Arts - - - - - Development Services 62,733 1,567,858 6,152 46,543 - Housing and Neighborhood Revitalization - - - - - Capital Projects - - - - - Unassigned - - - - (4,324,157) Total Fund Balances (Deficits) 62,733 1,569,190 6,152 46,543 (4,324,157) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 62,733$ 1,901,200$ 6,152$ 46,543$ 7,877,528$ Special Revenue Funds
CITY OF LANCASTER
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(109)
Capital ProjectsFundTotalLancaster OtherLighting Capital GovernmentalMeasure M District AVAQMD Projects FundsASSETSPooled Cash and Investments 1,413,924$ 6,918,149$ -$ 10,287,074$ 64,567,849$ Receivables:Accounts 367,520 53,856 487,666 - 9,289,792 Taxes - 132,471 - - 1,747,544 Accrued Interest 2,393 - - - 41,261 Due from Other Governments - - - - 7,965,237 Notes and Loans, Net - - - - 590,060 Prepaid Items - - - - 172,539 Land Held for Resale - - - - 224,766 Total Assets 1,783,837$ 7,104,476$ 487,666$ 10,287,074$ 84,599,048$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 156,642$ 396,901$ -$ 6,247,480$ 10,203,548$ Accrued Liabilities - 15,111 40,139 2,157,543 2,550,634 Unearned Revenues - - - - 924,078 Due to Other Funds - - 441,376 - 9,518,723 Total Liabilities 156,642 412,012 481,515 8,405,023 23,196,983 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 367,520 - 487,666 - 16,249,966 Total Deferred Inflows of Resources 367,520 - 487,666 - 16,249,966 FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - 172,539 Restricted:Community Development Projects - - - - 2,998,559 Public Safety - - - - 284,928 Parks, Recreation, and Arts - - - - 2,350,257 Development Services 1,259,675 6,692,464 - - 47,255,465 Housing and Neighborhood Revitalization - - - - 1,621,117 Capital Projects - - - 1,882,051 1,882,051 Unassigned - - (481,515) - (11,412,817) Total Fund Balances (Deficits) 1,259,675 6,692,464 (481,515) 1,882,051 45,152,099 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,783,837$ 7,104,476$ 487,666$ 10,287,074$ 84,599,048$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
(110)
Landscape Housing and Community Maintenance Community Gas Tax Services District DevelopmentREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental 8,355,731 - - 651,640 Charges for Services 4,071 - 1,984,224 - Investment Earnings 158,504 - - - Fines and Forfeitures - - - - Contributions - - 57,632 - Miscellaneous 2,702 34,747 - - Total Revenues 8,521,008 34,747 2,041,856 651,640 EXPENDITURESCurrent:General Government 20 30,983 - 145,058 Community Development - 20,368 - - Parks, Recreation, and Arts 92,148 - 17,628 - Development Services 11,258,082 - 2,418,989 - Housing and Neighborhood Revitalization - - - 132,457 Capital Outlay 1,113,089 - - 46,659 Debt Service:Principal Retirement - - - 198,000 Interest and Fiscal Charges - - - 11,187 Total Expenditures 12,463,339 51,351 2,436,617 533,361 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(3,942,331) (16,604) (394,761) 118,279 OTHER FINANCING SOURCES (USES)Transfers In 7,108,161 - 1,111,985 107,772 Transfers Out (3,035,632) - (243,051) (3,163) Total Other Financing Sources (Uses) 4,072,529 - 868,934 104,609 NET CHANGE IN FUND BALANCES130,198 (16,604) 474,173 222,888 Fund Balances (Deficits) - Beginning of Year 3,501,808 106,002 898,025 2,685,768 FUND BALANCES (DEFICITS) - END OF YEAR3,632,006$ 89,398$ 1,372,198$ 2,908,656$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(111)
HOME BikewayProgram Proposition A Improvement Proposition CREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental 17,026 4,241,614 201,185 3,518,298 Charges for Services - - - - Investment Earnings - 110,279 - 199,667 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 17,026 4,351,893 201,185 3,717,965 EXPENDITURESCurrent:General Government - 1,954,443 - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services - - - - Housing and Neighborhood Revitalization - - - - Capital Outlay - 1,686,256 194,668 2,314,199 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures - 3,640,699 194,668 2,314,199 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES17,026 711,194 6,517 1,403,766 OTHER FINANCING SOURCES (USES)Transfers In 1,556 - - - Transfers Out (108,809) (203,292) - - Total Other Financing Sources (Uses) (107,253) (203,292) - - NET CHANGE IN FUND BALANCES(90,227) 507,902 6,517 1,403,766 Fund Balances (Deficits) - Beginning of Year 1,711,344 4,658,768 10,755 7,980,329 FUND BALANCES (DEFICITS) - END OF YEAR1,621,117$ 5,166,670$ 17,272$ 9,384,095$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(112)
DeveloperFederal State Parks Fees -Grants Grants Development SignalsREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - 161,464 252,592 Intergovernmental 1,400,674 1,061,299 - - Charges for Services - - - - Investment Earnings - 7,706 - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 1,400,674 1,069,005 161,464 252,592 EXPENDITURESCurrent:General Government - - - - Community Development - 136,659 - - Parks, Recreation, and Arts - - - - Development Services - 494,164 - - Housing and Neighborhood Revitalization - - - - Capital Outlay 3,566,733 1,078,186 260,143 117,327 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 3,566,733 1,709,009 260,143 117,327 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(2,166,059) (640,004) (98,679) 135,265 OTHER FINANCING SOURCES (USES)Transfers In 9,764 53,013 - - Transfers Out - (54,980) - (45,493) Total Other Financing Sources (Uses) 9,764 (1,967) - (45,493) NET CHANGE IN FUND BALANCES(2,156,295) (641,971) (98,679) 89,772 Fund Balances (Deficits) - Beginning of Year (1,833,286) (834,557) 623,256 2,730,543 FUND BALANCES (DEFICITS) - END OF YEAR(3,989,581)$ (1,476,528)$ 524,577$ 2,820,315$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(113)
Developer Biological TrafficFees - Recycled Impact ImpactDrainage Water Fees FeesREVENUESTaxes -$ -$ -$ -$ Licenses and Permits 1,371,217 - 116,897 302,661 Intergovernmental - - - - Charges for Services - 159,286 - - Investment Earnings - - - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 1,371,217 159,286 116,897 302,661 EXPENDITURESCurrent:General Government - - - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services - 237,891 5,810 - Housing and Neighborhood Revitalization - - - - Capital Outlay 279,560 - - 581 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 279,560 237,891 5,810 581 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES1,091,657 (78,605) 111,087 302,080 OTHER FINANCING SOURCES (USES)Transfers In - 197,375 - - Transfers Out - (77,221) - - Total Other Financing Sources (Uses) - 120,154 - - NET CHANGE IN FUND BALANCES1,091,657 41,549 111,087 302,080 Fund Balances (Deficits) - Beginning of Year 9,865,502 8,943 816,801 1,452,781 FUND BALANCES (DEFICITS) - END OF YEAR10,957,159$ 50,492$ 927,888$ 1,754,861$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(114)
LancasterDrainageMaintenance Miscellaneous Traffic AQMD District Grants SafetyREVENUESTaxes -$ -$ 11,505$ -$ Licenses and Permits - - - - Intergovernmental 112,875 - - - Charges for Services - 2,181,897 - - Investment Earnings - - - - Fines and Forfeitures - - - 211,113 Contributions - - - - Miscellaneous - - - - Total Revenues 112,875 2,181,897 11,505 211,113 EXPENDITURESCurrent:General Government - - - - Community Development 17,750 - - - Parks, Recreation, and Arts - - - - Development Services - 2,044,362 - - Housing and Neighborhood Revitalization - - - - Capital Outlay - 51,875 - - Debt Service:Principal Retirement - 33,767 - - Interest and Fiscal Charges - 1,030 - - Total Expenditures 17,750 2,131,034 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES95,125 50,863 11,505 211,113 OTHER FINANCING SOURCES (USES)Transfers In 26,750 422,941 - - Transfers Out (5,279) (611,481) (11,000) (260,000) Total Other Financing Sources (Uses) 21,471 (188,540) (11,000) (260,000) NET CHANGE IN FUND BALANCES116,596 (137,677) 505 (48,887) Fund Balances (Deficits) - Beginning of Year (92,031) 1,765,195 - 333,815 FUND BALANCES (DEFICITS) - END OF YEAR24,565$ 1,627,518$ 505$ 284,928$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(115)
Zero-Net Energy Solar Urban Mitigation LA County StructureIn Lieu Reimbursement MTA Grant ProgramREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - 380,083 Intergovernmental - 467,712 2,121,789 - Charges for Services - - - - Investment Earnings - 218 - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues - 467,930 2,121,789 380,083 EXPENDITURESCurrent:General Government - - - - Community Development - 696,496 - - Parks, Recreation, and Arts - - - - Development Services - - - - Housing and Neighborhood Revitalization - - - - Capital Outlay - - 2,808,004 775,812 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures - 696,496 2,808,004 775,812 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES- (228,566) (686,215) (395,729) OTHER FINANCING SOURCES (USES)Transfers In - - 45,493 - Transfers Out - - (244) (28,474) Total Other Financing Sources (Uses) - - 45,249 (28,474) NET CHANGE IN FUND BALANCES- (228,566) (640,966) (424,203) Fund Balances (Deficits) - Beginning of Year 106,700 (27,110) (244,394) 2,199,391 FUND BALANCES (DEFICITS) - END OF YEAR106,700$ (255,676)$ (885,360)$ 1,775,188$ Special Revenue Funds
CITY OF LANCASTER
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(116)
SewerMariposa Maintenance Proposition Proposition Lily District 1B 42REVENUESTaxes -$ 4,404,875$ -$ -$ Licenses and Permits - 186,406 - - Intergovernmental - - - - Charges for Services - - - - Investment Earnings - - 29 - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues - 4,591,281 29 - EXPENDITURESCurrent:General Government - 1,234 - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services - 3,302,669 - - Housing and Neighborhood Revitalization - - - - Capital Outlay - 1,552,775 - - Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures - 4,856,678 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES- (265,397) 29 - OTHER FINANCING SOURCES (USES)Transfers In - - - - Transfers Out - (1,696,684) - - Total Other Financing Sources (Uses) - (1,696,684) - - NET CHANGE IN FUND BALANCES- (1,962,081) 29 - Fund Balances (Deficits) - Beginning of Year 62,733 3,531,271 6,123 46,543 FUND BALANCES (DEFICITS) - END OF YEAR62,733$ 1,569,190$ 6,152$ 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, 2023
(117)
Capital ProjectsFundTotalLancaster OtherLighting Capital GovernmentalMeasure R Measure M District AVAQMD Projects FundsREVENUESTaxes -$ -$ -$ -$ -$ 4,416,380$ Licenses and Permits - - - - - 2,771,320 Intergovernmental 3,664,212 2,984,103 - - - 28,798,158 Charges for Services - - 6,205,374 - - 10,534,852 Investment Earnings 13,150 28,911 329 - - 518,793 Fines and Forfeitures - - - - - 211,113 Contributions - - - - - 57,632 Miscellaneous - - 32,599 404,625 - 474,673 Total Revenues 3,677,362 3,013,014 6,238,302 404,625 - 47,782,921 EXPENDITURES Current:General Government - - - 886,140 - 3,017,878 Community Development - - - - - 871,273 Parks, Recreation, and Arts - - 10,090 - - 119,866 Development Services 1,620 598,926 3,158,674 - - 23,521,187 Housing and Neighborhood Revitalization - - - - - 132,457 Capital Outlay 8,372,939 1,600,896 - - - 25,819,702 Debt Service:Principal Retirement - - 605,000 - - 836,767 Interest and Fiscal Charges - - 389,774 - - 401,991 Total Expenditures 8,374,559 2,199,822 4,163,538 886,140 - 54,721,121 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(4,697,197) 813,192 2,074,764 (481,515) - (6,938,200) OTHER FINANCING SOURCES (USES)Transfers In - - - - - 9,084,810 Transfers Out (1,080,341) (1,620,512) (357,208) - - (9,442,864) Total Other Financing Sources (Uses) (1,080,341) (1,620,512) (357,208) - - (358,054) NET CHANGE IN FUND BALANCES(5,777,538) (807,320) 1,717,556 (481,515) - (7,296,254) Fund Balances (Deficits) - Beginning of Year 1,453,381 2,066,995 4,974,908 - 1,882,051 52,448,353 FUND BALANCES (DEFICITS) - END OF YEAR(4,324,157)$ 1,259,675$ 6,692,464$ (481,515)$ 1,882,051$ 45,152,099$ 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, 2023
(118)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR3,501,808$ 3,501,808$ 3,501,808$ -$ RESOURCES (INFLOWS)Intergovernmental 8,325,531 8,325,531 8,355,731 30,200 Charges for Services - - 4,071 4,071 Investment Earnings - - 158,504 158,504 Miscellaneous 2,000 240 2,702 2,462 Transfers In 13,212,283 13,212,283 7,108,161 (6,104,122) Amounts Available for Appropriations 25,041,622 25,039,862 19,130,977 (5,908,885) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government - - 20 (20) Parks, Recreation, and Arts - 102,253 92,148 10,105 Development Services 11,250,486 12,651,103 11,258,082 1,393,021 Capital Outlay - - 1,113,089 (1,113,089) Transfers Out 3,044,036 7,450,847 3,035,632 4,415,215 Total Charges to Appropriations 14,294,522 20,204,203 15,498,971 4,705,232 BUDGETARY FUND BALANCE - END OF YEAR10,747,100$ 4,835,659$ 3,632,006$ (1,203,653)$ Budgeted Amounts
CITY OF LANCASTER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(119)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR898,025$ 898,025$ 898,025$ -$ RESOURCES (INFLOWS)Charges for Services 1,715,700 1,965,700 1,984,224 18,524 Contributions 50,000 59,867 57,632 (2,235) Transfers In 20,240 1,111,985 1,111,985 - Amounts Available for Appropriations 2,683,965 4,035,577 4,051,866 16,289 CHARGES TO APPROPRIATIONS (OUTFLOWS)Parks, Recreation, and Arts - 38,617 17,628 20,989 Development Services 2,000,096 3,091,841 2,418,989 672,852 Transfers Out 279,381 279,381 243,051 36,330 Total Charges to Appropriations 2,279,477 3,409,839 2,679,668 730,171 BUDGETARY FUND BALANCE - END OF YEAR404,488$ 625,738$ 1,372,198$ 746,460$ 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, 2023
(120)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR2,685,768$ 2,685,768$ 2,685,768$ -$ RESOURCES (INFLOWS)Intergovernmental 1,918,931 1,918,931 651,640 (1,267,291) Transfers In - - 107,772 107,772 Amounts Available for Appropriations 4,604,699 4,604,699 3,445,180 (1,159,519) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government 48,543 153,427 145,058 8,369 Housing and Neighborhood Revitalization 746,377 776,104 132,457 643,647 Capital Outlay - - 46,659 (46,659) Debt Service:Principal Retirement 198,000 198,000 198,000 - Interest and Fiscal Charges 205,845 205,845 11,187 194,658 Transfers Out 3,163 997,163 3,163 994,000 Total Charges to Appropriations 1,201,928 2,330,539 536,524 1,794,015 BUDGETARY FUND BALANCE - END OF YEAR3,402,771$ 2,274,160$ 2,908,656$ 634,496$ 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, 2023
(121)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,711,344$ 1,711,344$ 1,711,344$ -$ RESOURCES (INFLOWS)Intergovernmental 719,769 719,769 17,026 (702,743) Transfers In - - 1,556 1,556 Investment Earnings - - - - Amounts Available for Appropriations 2,431,113 2,431,113 1,729,926 (701,187) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government 676,132 1,657,393 - 1,657,393 Transfers Out 1,037 1,037 108,809 (107,772) Total Charges to Appropriations 677,169 1,658,430 108,809 1,549,621 BUDGETARY FUND BALANCE - END OF YEAR1,753,944$ 772,683$ 1,621,117$ 848,434$ 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, 2023
(122)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR4,658,768$ 4,658,768$ 4,658,768$ -$ RESOURCES (INFLOWS)Intergovernmental 11,693,658 11,693,658 4,241,614 (7,452,044) Investment Earnings 14,040 14,040 110,279 96,239 Amounts Available for Appropriations 16,366,466 16,366,466 9,010,661 (7,355,805) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government 2,050,258 2,159,097 1,954,443 204,654 Capital Outlay - - 1,686,256 (1,686,256) Transfers Out 176,542 7,846,167 203,292 7,642,875 Total Charges to Appropriations 2,226,800 10,005,264 3,843,991 6,161,273 BUDGETARY FUND BALANCE - END OF YEAR14,139,666$ 6,361,202$ 5,166,670$ (1,194,532)$ 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, 2023
(123)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR10,755$ 10,755$ 10,755$ -$ RESOURCES (INFLOWS)Intergovernmental 429,841 429,841 201,185 (228,656) Amounts Available for Appropriations 440,596 440,596 211,940 (228,656) CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 194,668 (194,668) Transfers Out - 147,954 - 147,954 Total Charges to Appropriations - 147,954 194,668 (46,714) BUDGETARY FUND BALANCE - END OF YEAR440,596$ 292,642$ 17,272$ (275,370)$ 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, 2023
(124)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR7,980,329$ 7,980,329$ 7,980,329$ -$ RESOURCES (INFLOWS)Intergovernmental 15,873,544 16,733,962 3,518,298 (13,215,664) Investment Earnings 18,000 18,000 199,667 181,667 Amounts Available for Appropriations 23,871,873 24,732,291 11,698,294 (13,033,997) CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 2,314,199 (2,314,199) Transfers Out - 7,544,927 - 7,544,927 Total Charges to Appropriations - 7,544,927 2,314,199 5,230,728 BUDGETARY FUND BALANCE - END OF YEAR23,871,873$ 17,187,364$ 9,384,095$ (7,803,269)$ 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, 2023
(125)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(1,833,286)$ (1,833,286)$ (1,833,286)$ -$ RESOURCES (INFLOWS)Intergovernmental16,407,141 15,270,853 1,400,674 (13,870,179) Fines and Forfeitures2,327,997 2,327,997 - (2,327,997) Transfers In- - 9,764 9,764 Amounts Available for Appropriations16,901,852 15,765,564 (422,848) (16,188,412) CHARGES TO APPROPRIATIONS (OUTFLOWS)Parks, Recreation, and Arts621,325 621,325 - 621,325 Development Services2,450,524 2,450,524 - 2,450,524 Capital Outlay- - 3,566,733 (3,566,733) Transfers Out- 11,518,352 - 11,518,352 Total Charges to Appropriations3,071,849 14,590,201 3,566,733 11,023,468 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR13,830,003$ 1,175,363$ (3,989,581)$ (5,164,944)$ 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, 2023
(126)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(834,557)$ (834,557)$ (834,557)$ -$ RESOURCES (INFLOWS)Intergovernmental12,652,151 4,239,953 1,061,299 (3,178,654) Investment Earnings- - 7,706 7,706 Transfers In- - 53,013 53,013 Amounts Available for Appropriations11,817,594 3,405,396 287,461 (3,117,935) CHARGES TO APPROPRIATIONS (OUTFLOWS)Community Development- 339,920 136,659 203,261 Development Services2,782,916 3,720,430 494,164 3,226,266 Capital Outlay- - 1,078,186 (1,078,186) Transfers Out318,825 17,262,051 54,980 17,207,071 Total Charges to Appropriations3,101,741 21,382,401 1,763,989 19,618,412 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR8,715,853$ (17,977,005)$ (1,476,528)$ 16,500,477$ 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, 2023
(127)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR623,256$ 623,256$ 623,256$ -$ RESOURCES (INFLOWS)Licenses and Permits 40,000 40,000 161,464 121,464 Amounts Available for Appropriations 663,256 663,256 784,720 121,464 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 260,143 (260,143) Transfers Out - 280,506 - 280,506 Total Charges to Appropriations - 280,506 260,143 20,363 BUDGETARY FUND BALANCE - END OF YEAR663,256$ 382,750$ 524,577$ 141,827$ 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, 2023
(128)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR2,730,543$ 2,730,543$ 2,730,543$ -$ RESOURCES (INFLOWS)Licenses and Permits 160,000 160,000 252,592 92,592 Amounts Available for Appropriations 2,890,543 2,890,543 2,983,135 92,592 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 117,327 (117,327) Transfers Out - 2,033,045 45,493 1,987,552 Total Charges to Appropriations - 2,033,045 162,820 1,870,225 BUDGETARY FUND BALANCE - END OF YEAR2,890,543$ 857,498$ 2,820,315$ 1,962,817$ 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, 2023
(129)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR9,865,502$ 9,865,502$ 9,865,502$ -$ RESOURCES (INFLOWS)Licenses and Permits 450,000 450,000 1,371,217 921,217 Amounts Available for Appropriations 10,315,502 10,315,502 11,236,719 921,217 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 279,560 (279,560) Transfers Out - 2,345,135 - 2,345,135 Total Charges to Appropriations - 2,345,135 279,560 2,065,575 BUDGETARY FUND BALANCE - END OF YEAR10,315,502$ 7,970,367$ 10,957,159$ 2,986,792$ 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, 2023
(130)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR8,943$ 8,943$ 8,943$ -$ RESOURCES (INFLOWS)Charges for Services 100,000 130,000 159,286 29,286 Transfers In 197,375 197,375 197,375 - Amounts Available for Appropriations 306,318 336,318 365,604 29,286 CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services 223,505 257,497 237,891 19,606 Transfers Out 77,221 77,221 77,221 - Total Charges to Appropriations 300,726 334,718 315,112 19,606 BUDGETARY FUND BALANCE - END OF YEAR5,592$ 1,600$ 50,492$ 48,892$ 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, 2023
(131)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR816,801$ 816,801$ 816,801$ -$ RESOURCES (INFLOWS)Licenses and Permits 300,000 300,000 116,897 (183,103) Amounts Available for Appropriations 1,116,801 1,116,801 933,698 (183,103) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 5,810 (5,810) Transfers Out - 32,377 - 32,377 Total Charges to Appropriations - 32,377 5,810 26,567 BUDGETARY FUND BALANCE - END OF YEAR1,116,801$ 1,084,424$ 927,888$ (156,536)$ 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, 2023
(132)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,452,781$ 1,452,781$ 1,452,781$ -$ RESOURCES (INFLOWS)Licenses and Permits 300,000 200,000 302,661 102,661 Amounts Available for Appropriations 1,752,781 1,652,781 1,755,442 102,661 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 581 (581) Transfers Out - 753,287 - 753,287 Total Charges to Appropriations - 753,287 581 752,706 BUDGETARY FUND BALANCE - END OF YEAR1,752,781$ 899,494$ 1,754,861$ 855,367$ 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, 2023
(133)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(92,031)$ (92,031)$ (92,031)$ -$ RESOURCES (INFLOWS)Intergovernmental 99,810 99,810 112,875 13,065 Transfers In - - 26,750 26,750 Amounts Available for Appropriations 7,779 7,779 47,594 39,815 CHARGES TO APPROPRIATIONS (OUTFLOWS)Community Development 50,000 50,000 17,750 32,250 Transfers Out 5,279 5,279 5,279 - Total Charges to Appropriations 55,279 55,279 23,029 32,250 BUDGETARY FUND BALANCE - END OF YEAR(47,500)$ (47,500)$ 24,565$ 72,065$ 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, 2023
(134)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,765,195$ 1,765,195$ 1,765,195$ -$ RESOURCES (INFLOWS)Charges for Services 1,695,000 2,133,000 2,181,897 48,897 Transfers In 422,941 422,941 422,941 - Amounts Available for Appropriations 3,883,136 4,321,136 4,370,033 48,897 CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services 2,067,273 2,238,331 2,044,362 193,969 Capital Outlay - - 51,875 (51,875) Debt Service:Principal Retirement - - 33,767 (33,767) Interest and Fiscal Charges - - 1,030 (1,030) Transfers Out 619,885 1,210,548 611,481 599,067 Total Charges to Appropriations 2,687,158 3,448,879 2,742,515 706,364 BUDGETARY FUND BALANCE - END OF YEAR1,195,978$ 872,257$ 1,627,518$ 755,261$ 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, 2023
(135)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR-$ -$ -$ -$ RESOURCES (INFLOWS)Taxes 11,000 11,000 11,505 505 Amounts Available for Appropriations 11,000 11,000 11,505 505 CHARGES TO APPROPRIATIONS (OUTFLOWS)Transfers Out 11,000 11,000 11,000 - Total Charges to Appropriations 11,000 11,000 11,000 - BUDGETARY FUND BALANCE - END OF YEAR-$ -$ 505$ 505$ 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, 2023
(136)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR333,815$ 333,815$ 333,815$ -$ RESOURCES (INFLOWS)Fines and Forfeitures 260,000 260,000 211,113 (48,887) Amounts Available for Appropriations 593,815 593,815 544,928 (48,887) 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 YEAR333,815$ 333,815$ 284,928$ (48,887)$ 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, 2023
(137)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(27,110)$ (27,110)$ (27,110)$ -$ RESOURCES (INFLOWS)Intergovernmental 1,702,497 2,676,455 467,712 (2,208,743) Investment Earnings - - 218 Amounts Available for Appropriations 1,675,387 2,649,345 440,820 (2,208,743) CHARGES TO APPROPRIATIONS (OUTFLOWS)Community Development 1,445,678 4,854,005 696,496 4,157,509 Total Charges to Appropriations 1,445,678 4,854,005 696,496 4,157,509 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR229,709$ (2,204,660)$ (255,676)$ 1,948,766$ 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, 2023
(138)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(244,394)$ (244,394)$ (244,394)$ -$ RESOURCES (INFLOWS)Intergovernmental 2,723,811 3,463,393 2,121,789 (1,341,604) Transfers In - - 45,493 45,493 Amounts Available for Appropriations 2,479,417 3,218,999 1,922,888 (1,296,111) CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 2,808,004 (2,808,004) Transfers Out - 3,937,164 244 3,936,920 Total Charges to Appropriations - 3,937,164 2,808,248 1,128,916 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR2,479,417$ (718,165)$ (885,360)$ (167,195)$ 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, 2023
(139)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR2,199,391$ 2,199,391$ 2,199,391$ -$ RESOURCES (INFLOWS)Licenses and Permits 117,000 117,000 380,083 263,083 Amounts Available for Appropriations 2,316,391 2,316,391 2,579,474 263,083 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - 775,812 (775,812) Transfers Out 42,482 843,181 28,474 814,707 Total Charges to Appropriations 42,482 843,181 804,286 38,895 BUDGETARY FUND BALANCE - END OF YEAR2,273,909$ 1,473,210$ 1,775,188$ 301,978$ 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, 2023
(140)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR3,531,271$ 3,531,271$ 3,531,271$ -$ RESOURCES (INFLOWS)Taxes 4,100,000 4,400,000 4,404,875 4,875 Licenses and Permits 130,500 192,400 186,406 (5,994) Amounts Available for Appropriations 7,761,771 8,123,671 8,122,552 (1,119) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government - - 1,234 (1,234) Development Services 3,599,283 3,933,300 3,302,669 630,631 Capital Outlay - - 1,552,775 (1,552,775) Transfers Out 1,705,088 2,038,528 1,696,684 341,844 Total Charges to Appropriations 5,304,371 5,971,828 6,553,362 (581,534) BUDGETARY FUND BALANCE - END OF YEAR2,457,400$ 2,151,843$ 1,569,190$ (582,653)$ 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, 2023
(141)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR6,123$ 6,123$ 6,123$ -$ RESOURCES (INFLOWS)Investment Earnings - - 29 29 Amounts Available for Appropriations 6,123 6,123 6,152 29 CHARGES TO APPROPRIATIONS (OUTFLOWS)Transfers Out - 370 - 370 Total Charges to Appropriations - 370 - 370 BUDGETARY FUND BALANCE - END OF YEAR6,123$ 5,753$ 6,152$ 399$ 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, 2023
(142)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR46,543$ 46,543$ 46,543$ -$ CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - - - - Transfers Out - - - - Total Charges to Appropriations - - - - BUDGETARY FUND BALANCE - END OF YEAR46,543$ 46,543$ 46,543$ -$ 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, 2023
(143)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,453,381$ 1,453,381$ 1,453,381$ -$ RESOURCES (INFLOWS)Intergovernmental 20,397,108 37,992,072 3,664,212 (34,327,860) Investment Earnings 20,500 20,500 13,150 (7,350) Amounts Available for Appropriations 21,870,989 39,465,953 5,130,743 (34,335,210) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 1,620 (1,620) Capital Outlay - - 8,372,939 (8,372,939) Transfers Out 1,081,120 53,510,209 1,080,341 52,429,868 Total Charges to Appropriations 1,081,120 53,510,209 9,454,900 44,055,309 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR20,789,869$ (14,044,256)$ (4,324,157)$ 9,720,099$ 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, 2023
(144)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR2,066,995$ 2,066,995$ 2,066,995$ -$ RESOURCES (INFLOWS)Intergovernmental 9,746,617 9,746,617 2,984,103 (6,762,514) Investment Earnings 10,000 10,000 28,911 18,911 Amounts Available for Appropriations 11,823,612 11,823,612 5,080,009 (6,743,603) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 598,926 (598,926) Capital Outlay - 4,000 1,600,896 (1,596,896) Transfers Out 3,670,401 5,569,926 1,620,512 3,949,414 Total Charges to Appropriations 3,670,401 5,573,926 3,820,334 1,753,592 BUDGETARY FUND BALANCE - END OF YEAR8,153,211$ 6,249,686$ 1,259,675$ (4,990,011)$ 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, 2023
(145)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR4,974,908$ 4,974,908$ 4,974,908$ -$ RESOURCES (INFLOWS)Charges for Services4,520,000 5,828,000 6,205,374 377,374 Investment Earnings- - 329 329 Miscellaneous- - 32,599 32,599 Amounts Available for Appropriations9,494,908 10,802,908 11,213,210 410,302 CHARGES TO APPROPRIATIONS (OUTFLOWS)Parks, Recreation, and Arts- 10,090 10,090 - Development Services3,258,031 3,722,141 3,158,674 563,467 Capital Outlay279,562 117,327 - 117,327 Principal Retirement605,000 605,000 605,000 - Interest and Fiscal Charges405,607 405,607 389,774 15,833 Transfers Out357,208 526,599 357,208 169,391 Total Charges to Appropriations4,905,408 5,386,764 4,520,746 866,018 BUDGETARY FUND BALANCE - END OF YEAR4,589,500$ 5,416,144$ 6,692,464$ 1,276,320$ Budgeted Amounts
CITY OF LANCASTER
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30, 2023
(146)
AssessmentDistrictDepositsAD 92-101ASSETSPooled Cash and Investments154,596$ 163,415$ 202$ Receivable:Accounts- 82,611 - Taxes- 1,847 - Cash and Investments with Fiscal Agents- - - Total Assets154,596 247,873 202 LIABILITIESAccounts Payable- 25,661 - Deferred Revenues- 53,138 - Deposits Payable- 169,074 - Total Liabilities- 247,873 - NET POSITIONRestricted for Bondholders154,596 - 202 Total Net Position154,596$ -$ 202$
CITY OF LANCASTER
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS (CONTINUED)
JUNE 30, 2023
(147)
CFD 89-1CFD 90-1CFD 91-1TotalASSETSPooled Cash and Investments23,835$ (207)$ 542$ 342,383$ Receivable:Accounts- - - 82,611 Taxes- - - 1,847 Cash and Investments with Fiscal Agents2,185 - - 2,185 Total Assets26,020 (207) 542 429,026 LIABILITIESAccounts Payable- - - 25,661 Deferred Revenues- - - 53,138 Deposits Payable- - - 169,074 Total Liabilities- - - 247,873 NET POSITIONRestricted for Bondholders26,020 (207) 542 181,153 Total Net Position26,020$ (207)$ 542$ 429,026$
CITY OF LANCASTER
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2023
(148)
AssessmentDistrictDepositsAD 92-101DEDUCTIONSAdministrative Expenses-$ -$ -$ Total Deductions- - - CHANGE IN NET POSITION- - - Total Net Position - Beginning of Year154,596 - 202 TOTAL NET POSITION - END OF YEAR154,596$ -$ 202$
CITY OF LANCASTER
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2023
(149)
CFD 89-1CFD 90-1CFD 91-1TotalDEDUCTIONSAdministrative Expenses-$ -$ -$ -$ Total Deductions- - - - CHANGE IN NET POSITION- - - - Total Net Position - Beginning of Year26,020 (207) 542 181,153 TOTAL NET POSITION - END OF YEAR26,020$ (207)$ 542$ 181,153$
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STATISTICAL SECTION
CITY OF LANCASTER
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2023
(152)
STATISTICAL SECTION
This part of the City of Lancaster’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
Contents Page
Financial Trends 153-158
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
Revenue Capacity 159-163
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 164-168
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 169-170
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 171-172
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial 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 annual comprehensive 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, 2023
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Governmental ActivitiesNet Investment in Capital Assets 923,425,649$ 907,594,209$ 893,340,891$ 868,784,058$ 858,554,529$ 850,994,405$ 852,525,238$ 845,575,930$ 834,367,384$ 820,612,473$ Restricted 154,576,976 156,831,806 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 148,823,735 152,508,943 Unrestricted 30,520,092 (10,727,418) 3,063,526 (1,347,011) (6,020,947) (13,964,865) (80,694,919) 16,690,582 53,224,096 52,070,411 Total Governmental Activities Net Assets 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$ 1,036,415,215$ 1,025,191,827$ Business-type activitiesNet 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)$ (4,705,290)$ (4,933,215)$ Unrestricted2,469,059 (1,234,241) 1,748,081 3,317,256 4,911,084 4,781,147 9,780,734 8,662,408 10,659,839 15,695,751 Total Business-Type Activities Net Assets (1,752,308)$ (2,551,661)$ 572,736$ 2,318,985$ 3,359,888$ 2,727,026$ 7,273,689$ 5,762,437$ 5,954,549$ 10,762,536$ Primary GovernmentNet Investment in Capital Assets 919,204,282$ 906,276,789$ 892,165,546$ 867,785,787$ 857,003,333$ 848,940,284$ 850,018,193$ 842,675,959$ 829,662,094$ 815,679,258$ Restricted 154,576,976 156,831,806 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 148,823,735 152,508,943 Unrestricted 32,989,151 (11,961,659) 4,811,607 1,970,245 (1,109,863) (9,183,718) (70,914,185) 25,352,990 63,883,935 67,766,162 Total Primary Government Net Assets 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$ 1,042,369,764$ 1,035,954,363$ *2017 Net Assets RestatedFiscal Year
CITY OF LANCASTER
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023ExpensesGovernmental Activities:General Government 20,826,798$ 18,151,158$ 24,202,118$ 8,960,666$ 25,403,881$ 36,559,231$ 34,227,243$ 35,691,615$ 27,689,637$ 37,100,475$ Public Safety 24,042,237 26,777,341 26,305,165 28,407,266 29,600,738 30,472,647 31,515,319 32,230,935 35,132,514 38,988,488 Community Development 4,382,821 3,205,562 3,075,464 3,153,141 3,596,731 3,203,719 657,480 592,696 664,521 1,297,964 Parks, Recreation, and Arts 13,555,843 14,096,265 16,934,244 16,693,089 18,330,765 19,055,172 18,323,761 17,820,781 25,614,746 24,557,617 Development Services 54,078,702 54,734,695 50,457,653 69,971,677 54,409,902 53,929,613 53,960,990 50,239,507 65,722,004 82,016,861 Housing and Neighborhood Revitalization 3,072,338 4,341,667 2,672,073 2,561,473 2,158,452 2,115,890 1,850,333 2,056,358 7,758,697 1,001,945 Interest on Long-Term Debt 233,915 180,567 217,001 273,270 793,067 920,559 2,315,735 3,119,743 2,551,057 3,036,813 Total Primary Governmental Activities Expenses120,192,654 121,487,255 123,863,718 130,020,582 134,293,536 146,256,831 142,850,861 141,751,635 165,133,176 188,000,163 Business-type activities:Lancaster Power Authority 3,215,141 2,170,134 2,166,532 2,039,939 1,987,221 1,968,698 1,841,253 1,825,146 1,947,106 1,348,432 Lancaster Choice Energy - 1,430,990 20,238,595 33,808,624 34,290,014 36,835,001 39,741,272 47,013,871 51,194,116 67,149,222 California Choice Energy Authority - - - 52,276 2,414,623 4,287,401 5,650,866 6,033,722 7,081,730 7,517,372 Total Business-Type Activities Expenses 3,215,141 3,601,124 22,405,127 35,900,839 38,691,858 43,091,100 47,233,391 54,872,739 60,222,952 76,015,026 Total Primary Government Expenses123,407,795 125,088,379 146,268,845 165,921,421 172,985,394 189,347,931 190,084,252 196,624,374 225,356,128 264,015,189 Program Revenues (see Schedule 3)Governmental Activities:Charges for Services:General Government 198,193 432,988 513,200 639,962 602,044 619,995 139,214 3,335,332 287,009 1,156,517 Public Safety 978,834 818,277 751,611 984,026 1,062,896 1,085,753 853,945 2,525,888 802,251 681,722 Community Development 568,214 550,551 496,533 661,602 634,154 639,536 597,666 430,021 653,198 816,687 Parks, Recreation and Arts 3,683,705 3,652,517 4,277,377 4,550,335 4,321,483 4,715,881 2,657,974 759,537 2,499,106 3,415,139 Development Services 13,285,244 14,021,480 14,565,036 15,011,307 15,313,752 15,847,319 16,463,307 18,297,602 20,552,067 20,662,559 Housing and Neighborhood Revitalization 1,009,550 303,541 226,958 229,371 365,977 237,247 1,042,728 290,464 12 3,276 Operating Grants and Contributions 22,338,733 22,198,805 24,493,308 24,106,817 27,378,164 26,646,632 32,101,550 48,818,504 60,297,493 54,094,552 Capital Grants and Contributions 13,157,118 20,173,224 7,918,787 2,949,315 8,166,904 18,407,817 13,207,647 14,693,720 10,047,212 2,997,354 Total Governmental Activities Program Revenues 55,219,591 62,151,383 53,242,810 49,132,735 57,845,374 68,200,180 67,064,031 89,151,068 95,138,348 83,827,806
CITY OF LANCASTER
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(ACCRUAL BASIS OF ACCOUNTING)
(155)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Business-type activities:Charges for Services:Lancaster Power Authority 3,402,736$ 3,273,181$ 3,512,716$ 2,818,772$ 1,861,482$ 1,661,277$ 1,545,531$ 1,896,121$ 1,911,332$ 1,910,499$ Lancaster Choice Energy - 275,128 23,437,682 36,023,817 37,454,517 37,059,153 43,397,265 43,786,322 51,692,560 68,549,854 California Choice Energy Authority - - - 80,000 1,495,702 4,535,102 5,438,167 5,987,488 7,206,199 8,015,547 Total Business-Type Activities Program Revenues 3,402,736 3,548,309 26,950,398 38,922,589 40,811,701 43,255,532 50,380,963 51,669,931 60,810,091 78,475,900 Total Primary Government Program Revenues 58,622,327 65,699,692 80,193,208 88,055,324 98,657,075 111,455,712 117,444,994 140,820,999 155,948,439 162,303,706 Governmental Activities (64,838,504) (59,335,872) (70,620,908) (80,887,847) (76,448,162) (78,056,651) (75,786,830) (52,600,567) (69,994,828) (104,172,357) Business-Type Activities: 53,036 (52,815) 4,545,271 3,021,750 2,119,843 164,432 3,147,572 (3,202,808) 587,139 2,460,874 Net Primary Government Revenue (Expense) (64,785,468) (59,388,687) (66,075,637) (77,866,097) (74,328,319) (77,892,219) (72,639,258) (55,803,375) (69,407,689) (101,711,483) Other Changes in Net AssetsGovernmental Activities:TaxesProperty Taxes 14,370,865 16,854,719 19,252,156 19,468,926 20,423,770 22,583,607 24,296,937 26,148,244 27,184,193 33,007,795 Franchise Taxes 2,669,286 2,776,634 2,821,855 2,926,257 4,706,453 7,637,948 7,663,335 7,731,919 9,261,656 7,451,316 Transient Occupancy Taxes 1,313,033 1,614,404 1,866,299 2,064,522 2,202,452 2,211,230 1,965,102 2,012,943 2,709,026 2,676,338 Business Llicenses Taxes 929,618 983,968 915,740 842,598 932,469 920,998 722,837 1,223,982 1,364,377 855,151 Other Taxes 413,913 419,034 428,651 630,705 991,873 885,093 1,279,397 1,315,822 1,027,933 851,184 Intergovernmental 67,299 65,519 64,874 70,376 83,074 77,514 127,902 118,596 186,425 180,915 Intergovernmental -State Shared Sales Taxes 18,043,706 18,540,150 19,498,624 20,462,687 20,483,067 23,611,132 21,961,474 31,805,221 50,950,947 49,229,826 Investment Earnings 252,605 331,645 532,869 465,226 243,124 1,942,204 4,696,743 1,391,387 (1,397,099) 3,977,989 Miscellaneous 331,511 1,141,731 1,041,187 2,308,190 3,393,939 10,536,241 4,138,146 1,546,901 9,577,174 2,157,473 Gain on Sale of Land Held for Resale 4,160,149 2,129,772 1,158,860 443,926 1,283,807 1,220,392 888,441 513,340 801,949 433,995 Transfers 600,000 800,000 1,600,000 1,358,064 1,525,000 845,513 893,410 875,850 946,797 926,685 Total Governmental Activities 43,151,985 45,657,576 49,181,115 51,041,477 56,269,028 72,471,872 68,633,724 74,684,205 102,613,378 101,748,667 Business-Type Activities:Investment Earnings 9,533 1,762 6,041 10,109 25,250 48,219 34,247 860 182 313 Miscellaneous 47,833 51,700 173,085 72,454 420,810 2,258,254 2,790,669 551,588 3,273,485 Transfers (600,000) (800,000) (1,600,000) (1,358,064) (1,525,000) (845,513) (893,410) (875,850) (946,797) (926,685) Total Business-Type Activities (542,634) (746,538) (1,420,874) (1,275,501) (1,078,940) (797,294) 1,399,091 1,915,679 (395,027) 2,347,113
CITY OF LANCASTER
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(ACCRUAL BASIS OF ACCOUNTING)
(156)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Extraordinary Gain/(Loss) 41,469,430$ -$ 11,789,312$ -$ -$ -$ -$ -$ -$ -$ Total Primary Government Revenues, Contributions,Extraordinary Items and Transfers 84,078,781 44,911,038 59,549,553 49,765,976 55,190,088 71,674,578 70,032,815 76,599,884 102,218,351 104,095,780 Extraordinary Gain/Lloss) due to Transfer of Assetsto Successor Agency (Note 16) 41,469,430 - - - - - - - - - Change in Net AssetsGovernmental Activities 19,648,352 (13,678,296) (9,650,481) (29,846,370) (20,179,134) (5,584,779) (7,153,106) 22,083,638 32,618,550 (2,423,690) Business-Type Activities (355,039) (799,353) 3,124,397 1,746,249 1,040,903 (632,862) 4,546,663 (1,287,129) 192,112 4,807,987 Total Primary Government 19,293,313$ (14,477,649)$ (6,526,084)$ (28,100,121)$ (19,138,231)$ (6,217,641)$ (2,606,443)$ 20,796,509$ 32,810,662$ 2,384,297$
CITY OF LANCASTER
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(157)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023General FundNonspendable 28,221,235$ 30,146,378$ 35,269,352$ 35,371,160$ 34,813,055$ 29,262,811$ 29,674,751$ 26,457,074$ 27,214,902$ 27,657,520$ Committed - - - - - 3,365,000 1,614,733 8,083,847 47,957,898 49,046,805 Assigned 4,680,626 4,928,059 5,271,564 16,385,000 21,342,040 23,159,000 9,055,493 14,132,994 14,132,994 9,418,787 Unassigned 8,742,053 7,363,284 14,512,289 3,799,199 27,264 7,120,806 24,936,990 37,531,649 32,605,717 33,113,340 Total General Fund41,643,914$ 42,437,721$ 55,053,205$ 55,555,359$ 56,182,359$ 62,907,617$ 65,281,967$ 86,205,564$ 121,911,511$ 119,236,452$ All Other Governmental FundsNonspendable -$ 47,639$ 138,887$ 302,869$ -$ 1,952$ -$ 114,493$ 29,788$ 174,084$ Restricted 151,441,914 153,298,355 143,175,424 138,738,574 135,604,095 145,720,618 194,765,788 186,902,404 144,389,404 134,580,180 Assigned 509 17,055 - 60,647 60,647 60,647 556,466 1,905,548 1,882,051 - Unassigned (2,637,423) (2,503,461) (2,239,594) (4,009,386) (5,552,234) (4,758,232) (12,709,657) (4,213,959) (5,907,837) (23,256,474) Total all Other Governmental Funds148,805,000$ 150,859,588$ 141,074,717$ 135,092,704$ 130,112,508$ 141,024,985$ 182,612,597$ 184,708,486$ 140,393,406$ 111,497,790$ Explanation of fund balance categories and descriptions can be found in Note 1 - Summary of Significant Accounting Policies; differences in fund balances between 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, 2023
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(158)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023RevenuesTaxes 43,142,049$ 45,955,569$ 50,788,011$ 51,225,214$ 32,694,321$ 45,375,573$ 39,776,377$ 46,881,898$ 67,506,842$ 66,935,994$ Licenses, Fees, and Permits 3,765,131 4,213,219 7,618,177 7,154,796 7,311,998 7,258,884 6,148,835 18,160,703 10,309,048 10,648,181 Intergovernmental 25,441,406 29,814,201 20,399,991 20,131,473 49,677,753 57,084,430 56,422,007 84,585,107 95,845,505 57,956,562 Charges for Services 11,055,161 11,579,958 11,943,261 12,047,968 12,110,502 12,735,980 11,656,942 10,631,985 12,541,661 14,069,824 Investment Earnings 5,988,730 3,027,639 1,315,125 865,832 1,011,369 2,587,662 2,913,406 538,028 (1,462,632) 4,338,468 Fines and Forfeitures 1,164,109 1,031,987 958,579 1,076,830 1,248,494 1,296,476 996,310 702,937 974,257 854,519 Contributions - - - 630 35,586 8,033 2,669 8,757 59,454 57,632 Rental Income - 5,748 194,687 155,750 155,750 156,958 128,893 - 25,613 - Gain From Sale of Land Held - - - - - 30,303 472,883 570,576 433,995 Miscellaneous 1,108,353 2,167,266 2,365,424 5,320,963 6,340,721 5,930,584 6,331,271 7,193,270 9,499,352 6,204,008 Total Revenues 91,664,939$ 97,795,587$ 95,583,255$ 97,979,456$ 110,586,494$ 132,434,580$ 124,407,013$ 169,175,568$ 195,869,676$ 161,499,183$ ExpendituresGeneral Government 13,998,033$ 15,994,460$ 20,261,382$ 19,648,188$ 21,765,331$ 31,975,792$ 28,610,023$ 31,230,218$ 34,603,620$ 38,344,825$ Public Safety 24,238,229 25,019,344 26,299,308 28,401,068 29,429,466 30,290,409 31,325,203 32,319,382 35,083,490 38,974,589 Community Development 4,021,302 2,732,422 2,796,072 2,879,556 3,352,591 2,779,144 236,826 490,242 236,622 871,273 Parks, Recreation and Arts 12,324,636 12,819,404 15,218,338 16,157,838 16,769,802 17,655,903 17,042,667 15,392,513 23,729,690 22,670,836 Development Services 17,639,737 19,678,403 18,634,314 34,626,426 20,337,475 19,389,078 20,176,895 21,898,694 36,449,170 40,486,888 Housing and Neighborhood Revitalization 5,063,159 4,341,667 2,672,073 3,564,603 2,158,452 2,115,890 1,850,333 2,056,358 7,758,697 1,011,720 Capital Outlay 11,121,837 14,852,578 17,109,139 13,067,378 22,380,893 24,040,695 32,485,154 30,875,418 62,883,972 45,179,585 Debt ServicePrincipal528,151 549,758 607,293 771,403 1,774,883 2,524,442 3,397,596 3,055,692 2,342,636 4,491,118 Interest 244,583 221,672 185,367 293,259 660,933 845,577 2,413,747 3,525,805 2,976,633 3,110,856 Total Expenditures 89,179,667 96,209,708 103,783,286 119,409,719 118,629,826 131,616,930 137,538,444 140,844,322 206,064,530 195,141,690 Excess of Revenues Over (Under)Expenditures 2,485,272 1,585,879 (8,200,031) (21,430,263) (8,043,332) 817,650 (13,131,431) 28,331,246 (10,194,854) (33,642,507) Other Financing Sources (Uses)Sale of Capital Assets - - - - - - 526,178 40,457 576,405 256,272 Bonds, notes, and Loans Iissued - - - 14,250,000 - 14,955,000 48,405,000 - - - Bonds Issuance Premium - - - 529,230 - 387,570 7,268,805 - 62,519 - Sale of Capital Assets - - - - - 202,197 - - - - Gain/(Loss) on Sale of Land - - - - 90,300 - - - - - Proceeds from Capital Lease - - 255,981 555,221 - 232,545 - - - 888,875 Transfers in 23,056,901 24,675,475 31,209,370 22,640,266 36,663,811 36,307,639 50,727,058 19,492,130 20,574,564 24,314,909 Transfers out (22,456,901) (23,875,475) (29,609,370) (21,282,202) (35,138,811) (35,462,126) (49,833,648) (18,616,280) (19,627,767) (23,388,224) Total Other Financing Sources (Uses) 600,000 800,000 1,855,981 16,692,515 1,615,300 16,622,825 57,093,393 916,307 1,585,721 2,071,832 Extraordinary, Special Gain/(Loss) 22,836,799 - 9,174,663 - - - - - - - Net Change in Fund Balances 25,922,071$ 2,385,879$ 2,830,613$ (4,737,748)$ (6,428,032)$ 17,440,475$ 43,961,962$ 29,247,553$ (8,609,133)$ (31,570,675)$ Debt service as a percentage of noncapital expenditures 0.99% 0.95% 0.91% 1.00% 2.53% 3.13% 5.53% 5.98% 3.72% 5.07%2018 & beyond - Sales Taxes moved from Taxes category to Intergovernmental category.
CITY OF LANCASTER
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(159)
IntergovernmentalFiscal*PropertyTransientState SharedFranchiseBusiness OtherYearTaxesOccupancySales TaxesMeasure LCTaxesLicenses TaxesTaxesTotal201414,370,865$ 1,313,033$ 18,043,706$ 2,669,286$ 929,618$ 413,913$ 37,740,421$ 201519,252,156 1,614,404 18,540,150 2,821,855 915,740 428,651 43,572,956 201619,468,926 1,866,299 19,498,624 2,926,257 842,598 630,705 45,233,409 201720,423,770 2,064,522 20,462,687 4,706,453 932,469 991,873 49,581,774 201820,423,770 2,202,452 20,483,067 4,706,453 932,469 991,873 49,740,084 201922,583,607 2,211,230 23,611,132 7,637,948 920,998 885,093 57,850,008 202024,296,937 1,965,102 21,961,474 7,731,919 1,223,982 1,315,822 58,495,236 202126,148,244 2,012,943 26,734,737 5,070,608$ 7,731,919 729,798 1,010,653 69,438,901 202227,184,193 2,709,026 28,325,781 22,625,166 9,261,656 1,364,377 1,027,933 92,498,132 202333,007,795 2,676,338 27,547,477 21,682,349 7,451,316 855,151 851,184 94,071,610 3.96%34.58%5.95%19.78%86.95%1.71%33.21%Change(1,035,949) (696,083) (1,591,044) (17,554,558) (1,529,737) (634,579) (17,280) (23,059,231) 89.2%106.3%57.0%247.0%46.8%148.3%145.1%*Since 2013 Property Taxes have been substantially less due to dissolution of Lancaster Redevelopment AgencySource: City of Lancaster Finance Department2014-2023
CITY OF LANCASTER
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(IN THOUSANDS)
(160)
Less:Total TaxableTotalFiscalResidentialCommercialIndustrialOtherUnsecuredTax-ExemptAssessedDirect TaxYearProperty*Property*Property*Property*Property*PropertyValueRate*2013-146,028,269$ 1,142,422$ 421,089$ 1,086,064$ 290,049$ (491,828)$ 8,476,065$ 0.0943602014-156,875,938 1,151,791 429,440 1,105,203 278,624 (501,969) 9,339,027 0.0929702015-167,366,323 1,272,042 431,603 1,137,342 291,158 (513,024) 9,985,444 0.0919402016-177,772,454 1,293,080 439,480 1,175,301 309,909 (429,860) 10,560,364 0.0912202017-188,248,993 1,331,678 455,985 1,213,136 283,133 (487,736) 11,045,188 0.0902302018-198,849,447 1,396,589 514,693 1,219,625 280,558 (461,721) 11,799,191 0.0894602019-209,457,797 1,444,154 550,237 1,332,867 360,368 (428,683) 12,716,740 0.0885302020-219,778,254 1,426,788 576,248 1,773,175 407,473 (638,594) 13,323,344 0.0857862021-2210,463,372 1,408,293 636,430 1,865,415 376,652 (664,045) 14,086,117 0.0848922022-2311,334,803 1,451,790 729,968 1,991,840 429,505 (728,380) 15,209,526 0.085840*Total Direct Rate is the weighted average of all individual direct rates applied by the City and excludes revenues derived from aircraft. Beginning in 2013/14Source: Los Angeles County Assessor data, Hdl, Coren & Conethe Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
CITY OF LANCASTER
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(161)
LosAntelope ValleyTotal City's ShareFiscalAngelesUnion HighElementaryCommunityDirect &of 1% LevyTotalYearGeneralCountySchool DistrictSchool DistrictsCollegeWaterOverlapping(1)Per Prop 13(2)Direct(3)20141.00000%0.00000%0.02602%0.19795%0.02741%0.07049%1.32186%0.06611%0.09436020151.00000%0.00000%0.02585%0.21896%0.02480%0.07049%1.34010%0.06611%0.09297020161.00000%0.00000%0.02428%0.21732%0.02556%0.07049%1.33765%0.06611%0.09194020171.00000%0.00000%0.02474%0.21889%0.02560%0.07049%1.33972%0.06611%0.09122020181.00000%0.00000%0.02357%0.21331%0.04869%0.07049%1.35606%0.06611%0.09023020191.00000%0.00000%0.02317%0.20772%0.04847%0.07049%1.34985%0.06611%0.08946020201.00000%0.00000%0.02187%0.20734%0.04722%0.07049%1.34692%0.06611%0.08853020211.00000%0.00000%0.02163%0.06540%0.42466%0.07049%1.58218%0.06611%0.08578620221.00000%0.00000%0.02360%0.20887%0.04424%0.07049%1.34720%0.06611%0.08578620231.00000%0.00000%0.02289%0.18306%0.04060%0.07049%1.31704%0.06611%0.085840Source: Los Angeles County Auditor 2013/14-2022/23 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 TAXPAYERS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(162)
PercentagePercentageof Total Cityof Total CityTaxableTaxableTaxableTaxableAssessedAssessedAssessedAssessedTaxpayerValueRankValueTaxpayerValueRankValueWestCore Bravo Lancaster LLC143,208,000$ 10.94%Walmart Real Estate Business Trust53,855,053$ 10.63%AG Cordova Park Owner LP86,109,01120.57%CP Antelope Shops LLC47,476,44920.55%Rami Darghalli Trust73,127,86930.48%Thrifty Payless Inc46,393,46930.54%Granada Villas REI LLC67,273,79240.44%US Industrial Reit II45,284,00040.53%Walmart Stores Inc64,161,42050.42%MGF Cordova Park LP33,950,00050.39%AG Sienna Heights Owner LP62,667,37860.41%Kaiser32,225,00360.37%2018-3 IH Borrower LP55,793,65470.37%MK RRP 117 Holston Drive LLC32,198,62370.37%TA-High Desert LLC50,158,38880.33%MGP IX Properties LLC28,246,86080.33%BYD Coach and Bus LLC49,743,28890.33%Sygma Network Inc26,827,70390.31%Vereit Real Estate LP48,409,917100.32%K Partners Lancaster II LP26,453,588100.31%Top Ten Total 700,652,717$ 4.61% 372,910,748$ 4.33%2013-142022-23
CITY OF LANCASTER
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(163)
FiscalYearTaxes LeviedCollectionsEndedfor thePercentagein SubsequentPercentageJune 30,Fiscal YearAmountof LevyYearsAmountof Levy20143,686,297 3,686,297 100%- 3,686,297 100%20155,101,745 5,101,745 100%- 5,101,745 100%20166,698,981 6,698,981 100%- 6,698,981 100%20176,205,334 6,205,334 100%- 6,205,334 100%20186,560,915 6,560,915 100%- 6,560,915 100%20197,931,274 7,931,274 100%- 7,931,274 100%20208,272,425 8,272,425 100%- 8,272,425 100%20219,603,394 9,603,394 100%- 9,603,394 100%2022 9,711,407 9,711,407 100% - 9,711,407 100%2023 10,691,826 10,691,826 100% - 10,691,826 100%Source: City of Lancaster Finance DepartmentCollected within theFiscal Year of the Levy Total Collections to Date
CITY OF LANCASTER
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(DOLLARS IN THOUSAND, EXCEPT PER CAPITA)
(164)
*Business-TypeLeaseAssessmentActivityTotalFiscalRevenueDistrictRevenuePrimaryPerYear Bonds Bonds Bonds Government Capita 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 201914,340 14,157 21,735 50,232 254.71%0.31 202014,085 12,630 21,225 47,940 229.77%0.30 202113,820 12,060 20,284 46,164 206.87%0.27 202213,545 11,475 18,328 43,348 193.90%0.25 202313,255 10,870 17,616 41,741 169.75%0.24 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.Percentageof PersonalIncome
CITY OF LANCASTER
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(165)
Percentage ofGeneral Actual TaxableFiscal ObligationValue a ofPerYear Bonds Total PropertyCapita b2014 -$ 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 2022 - 150,735 150,735 1.0701% 0.88 2023 - 140,155 140,155 0.9215% 0.81 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 OutstandingRedevelopmentBondsTax Allocation
CITY OF LANCASTER
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED JUNE 30, 2023
(166)
EstimatedShare ofTotalEstimatedDirect andDebtPercentageOverlappingOutstandingApplicableDebtDirect Debt Direct Borrowings7,717,635$ 100.00%7,717,635$ Other Debt:Streetlight Acquisition Bonds of 201610,870,000 100.00%10,870,000 Public Improvement Project Bonds of 201813,255,000 100.00%13,255,000 Unamortized Bond Premiums6,606,877 100.00%6,606,877 Measure M & R Street Improvement44,695,000 100.00%44,695,000 Other Long-Term Liabilities9,214,429 100.00%9,214,429 Total Direct Debt92,358,941$ Overlapping Tax and Assessment DebtAntelope Valley Joint Community College District431,450,916$ 34.60%149,269,073 Antelope Valley Union High School District31,279,873 39.22%12,267,966 Eastside Union School District2,540,000 65.71%1,668,958 Lancaster School District66,107,091 97.57%64,501,350 Westside Union School District39,918,813 29.57%11,805,590 Westside Union School District Community Facilities Districts21,825,699 100.00%21,825,699 City of Lancaster School District Community Facilities District No. 2004-19,505,000 100.00%9,505,000 City of Lancaster Lighting Maintenance District10,870,000 100.00%10,870,000 California Statewide Community Development Authority Assessment Districts4,545,000 100.00%4,545,000 Total Overlapping Tax And Assessment Debt286,258,636 Total Direct And Overlapping Governmental Funds Debt378,617,577$ City Assessed Valuation15,356,995,284$ Incremental Value131,355$ Total Assessed Valuation15,357,126,639$ Debt to Assessed Valuation Ratios:Direct Debt0.601%Overlapping and Assessment Debt1.864%Total Direct and Overlapping Governmental Funds Debt2.465%Notes: Source: HdL Coren & Cone, Los Angeles Co Assessor & Auditor Combined 2020/21 Lien Date Tax Rolls, City of Lancaster Finance DepartmentOverlapping governments are those that coincide, at least in part, 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 estimated 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, 2023
(DOLLARS IN THOUSANDS)
(167)
2014201520162017201820192020202120222023Assessed Valuation8,476,065$ 9,339,027$ 9,985,444$ 10,560,364$ 11,045,188$ 11,799,191$ 12,716,740$ 13,323,344$ 14,086,117$ 15,209,526$ Debt Limit (3.75% of Gross AV)317,852 350,214 374,454 396,014 414,195 442,470 476,878 499,625 528,229 570,357 Total Net Debt Applicable to Limit - - - - - - - - - - Legal Debt Margin 317,852$ 350,214$ 374,454$ 396,014$ 414,195$ 442,470$ 476,878$ 499,625$ 528,229$ 570,357$ Total Net Debt Applicable to the Limit as a Percentage of Debt Limit0.00%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 & ConeFiscal Year
CITY OF LANCASTER
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(DOLLARS IN THOUSANDS)
(168)
PropertyFiscal TaxYearIncrementPrincipalInterestCoverage2014 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 2022 20,181 13,325 5,935 1.05 2023 16,083 9,675 5,496 1.06 Notes: Details regarding the city's outstanding redevelopment debt can be found in the notes to the financial statements. Debt ServiceRedevelopment Tax Allocation Bonds
CITY OF LANCASTER
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
YEAR ENDED JUNE 30, 2023
(169)
Calendar Year PopulationPersonal income (in Thousands)Per Capita Personal IncomeUnemployment Rate Median Age% of Pop 25+ with High School Degree% of Pop 25+ with Bachelor's Degree2013 159,878 $3,170,860 $19,833 10.90% 31.5 80.60% 16.20%2014159,956$3,171,927 $19,830 9.20%32.379.80%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%2022 173,376 $4,263,255 $24,589 7.30% 33.3 81.70% 19.10%Source: Los Angeles County Assessor data, HdL Coren & Cone
CITY OF LANCASTER
TOP 10 PRINCIPAL EMPLOYERS
CURRENT CALENDAR YEAR AND TEN YEARS PRIOR
YEAR ENDED JUNE 30, 2023
(170)
PercentagePercentageEstimated of Total Valley Estimatedof Total ValleyEmployerEmployeesRankEmploymentEmployerEmployeesRankEmploymentEdwards Air Force Base 10,0001 11.54%Edwards Air Force Base 10,6471 15.75%Northrop Grumman 8,0002 9.23% China Lake Navel Weapons 9,1722 13.57%China Lake NWC 7,1003 3.46%County of Los Angeles 3,7433 5.54%Palmdale School District 3,0004 3.00% Northrop Grumman 2,7724 4.10%Antelope Valley Hospital Medical Center 2,6005 8.19%Lockheed Martin 2,7125 4.01%Walmart2,0756 2.36%Palmdale School District 2,6826 3.97%County of Los Angeles 2,0457 2.39%AV Union High School District 2,6897 3.98%Antelope Valley Union Highschool District 1,0878 1.25% Antelope Valley Hospital 2,3008 3.40%BYD7509 0.87% California Correctional Institute1,9159 2.83%Lancaster School District63810 0.74%Walmart Stores (5) 1,92210 2.84%TOTAL Employment 86,688 43.02% 67,601 59.99%Source: City of Lancaster Economic Development: City of Lancaster ACFR FY 2013-2014Notes: Total employment as used above may represent figures from total employment located within the Greater Antelope Valley region. The Greater Antelope Valley is considered to be the City'seconomic region and covers 3,514.2 square miles of area and includes Lancaster, Palmdale, Tehachapi, Mojave, Edwards AFB, and Ridgecrest. Most recent information available20232014
CITY OF LANCASTER
FULL-TIME-EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2023
(171)
2014201520162017201820192020202120222023FunctionGeneral GovernmentAdministrative Services8.00 6.00 3.00 1.00 13.00 16.00 15.00 12.00 - - Air Quality Management District- - - - - - - - 6.00 6.00 City Clerk3.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 6.00 6.00 City Manager9.25 10.25 11.75 12.75 9.75 8.00 10.00 9.00 10.00 10.00 Communications- - - - - - - - 4.00 4.00 Community Development- - - - - - - - - 12.00 Economic Development, Housing, and Film2.00 3.00 4.00 4.00 5.00 2.00 23.00 - 10.00 Finance and Information Technology25.00 24.00 25.00 25.00 19.00 18.00 17.00 25.00 25.00 Housing and Neighborhood Revitalization20.00 19.00 20.00 20.00 19.00 21.00 17.00 17.00 - - Human Resources5.00 5.00 4.00 6.00 7.00 7.00 7.00 10.00 10.00 10.00 Planning, Building and Safety,and Energy- - - - - - - - - 17.00 Redevelopment- - - - - - - - - - City Attorney- 1.00 1.00 2.00 2.00 2.00 - - - - Development Services125.00 124.00 131.00 131.00 124.00 124.00 122.00 105.00 134.00 - Lancaster Choice Energy- - 8.00 8.00 5.00 4.00 1.00 - - - Parks, Recreation and Arts51.00 53.00 45.00 45.00 45.00 47.00 45.00 51.00 53.00 53.00 Public Safety13.00 13.00 12.00 12.00 13.00 11.00 12.00 26.00 50.00 50.00 Public Works- - - - - - - - - 95.00 Less vacancies filled by internal recruitments(11.00) (8.00) (22.00) (18.75) (19.00) (8.00) - - - - Total250.25252.25245.75251.00245.75255.00249.00256.00298.00298.00Year over year(9.00) 2.00 (6.50) 5.25 (5.25) 9.25 (6.00) 7.00 42.00 - Source: City Human Resources DepartmentNote: 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, 2023
(172)
Function/Program2014 2015 2016 2017 2018 2019 2020 2021 2022 2023General governmentCity Hall1 1 1 1 1 1 1 1 1 1 Annex/Record Center- - - - - - - - - - Antelope Valley UHSD Building- - - - - - - - - 1 Community DevelopmentBrierwood Mobile Home Park- - - - - - - - - - Desert Sands Mobile Home Park- - - - - - - - - - Development ServicesMaintenance Yard - Modular Office Bldg.1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Office/Warehouse1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Maintenance Garage1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Canopy1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Storage Bldg4 3 3 3 3 3 3 3 3 3 Maintenance Yard - Wash Bay1 1 1 1 1 1 1 1 1 1 Maintenance Yard - HazMat Storage Bldg1 1 1 1 1 1 1 1 1 1 Streets (miles)640 1,765 1,765 1,765 1,765 1,765 1,769 482 1,493 1,493 Streetlights (owned by City)1,895 1,895 1,908 19,576 19,576 19,576 19,576 19,777 19,777 21,000 Traffic signals139 147 145 153 153 141 143 143 143 145 Street Signs26,400 26,412 26,472 26,759 38,000 38,000 38,000 38,000 38,000 38,000 Fleet Vehicles318 304 322 320 318 321 321 318 341 404 Storm Drain Pipe (LF)485,113 485,113 485,113 420,239 420,239 430,445 430,868 432,434 434,193 434,917 Storm Drain Box (LF)27,996 27,996 27,996 27,996 27,996 9,217 9,217 9,217 9,217 9,217 Storm Drain Box (Each)1,547 1,547 1,477 1,477 1,487 1,494 1,498 Storm Drain Channel (LF44,883 44,883 44,883 45,733 45,733 45,951 45,951 45,951 45,951 45,951 Sewer Pipe (LF)2,265,120 2,265,120 2,262,626 2,268,696 2,268,527 2,265,120 2,271,627 2,276,401 2,314,392 2,283,494 Sewer Manholes9,188 9,042 8,966 8,975 8,977 9,073 9,106 9,130 9,276 9,300 Sewer Lift Station1 1 1 1 1 1 1 1 1 1 Drainage Lift Station- - - - - - - 13 14 13 Recycled Water Pump Station- - - - - - - - 2 2 Parks, Recreation and ArtsAcreage538 538 538 538 538 558 558 558 558 558 Developed park sites14 14 14 14 14 14 14 14 14 14 Pools2 2 2 2 2 2 2 2 2 2 Big 8 Tournament Baseball complex1 1 1 1 1 1 1 1 1 1 Batting Cage Facility1 1 1 1 1 1 1 1 1 1 Soccer complex1 1 1 1 1 1 1 1 1 1 Community/Activity Centers8 8 8 8 8 8 8 8 8 8 Cedar Center1 1 1 1 1 1 1 1 1 1 Prime Desert Woodlands Preserve/Nature Cntr1 1 1 1 1 1 1 1 1 1 Municipal Baseball Stadium1 1 1 1 1 1 1 1 1 1 Performing Arts Center1 1 1 1 1 1 1 1 1 1 Museum and Art Gallery1 1 1 1 1 1 1 1 1 1 Western Hotel (historic site)1 1 1 1 1 1 1 1 1 1 Metrolink Station1 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.
Fiscal Year
*Estimated figures
CITY OF LANCASTER, CALIFORNIA
AGREED-UPON PROCEDURES
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2023
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEP
ENDENT ACCOUNTANTS’ REPORT
ON AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
To the Honorable Mayor and
Members of the City Council
of the City of Lancaster
Lancaster, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet No. 6 of the City of Lancaster, California (the City) for the year ended June 30, 2023. The City’s management is responsible for the Appropriations Limit Worksheet No. 6.
The City and the League 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 a
re appropriate to meet the intended purpose of meeting the requirements of Sectio n 1.5 of Article XIII-B of the Cal
ifornia 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 this report and may not meet the ne
eds of all users of this report and, as such, users are responsible for de termining whether the procedu
res performed are appropriate for their purposes.
The proced
ures and the associated findings are as follows:
1. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended June 30 , 2023 and compared th
e limit and annual adjustment factors included i n that worksheet to the limit and an
nual adjustment factors that were adopted by resolution of the City Council. We also compared the populati
on and inflation options included in the 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.
2. For the Appropriations Limit Worksheet No. 6, we added last year’s limit to the total adjustments, and compared the resulting amount to this year’s limit. We also recalc ulated the adjustment factor and th
e adjustment for inflation and population, and compared the results to the amounts on Appropriations Limit Worksheet No. 6.
No exceptio
ns were noted as a result of our performing this procedure.
3. We compared the prior year appropriations limit presented in the accompanying Ap propriations Limit Worksheet No. 6 to the prior year appropr iations limit adopted by the City Council for the
prior year.
No exceptions were noted as a result of our performing this procedure.
City Council
City of Lancaster
Lancaster, California
(2)
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 accompanying 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 independent 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 of the City of Lancaster, California and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Irvine, California
April 9, 2024
CITY OF LANCASTER
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2023
See accom
panying Notes to Appropriations Limit Worksheet No. 6.
(3)
Appropriations Limit for Fiscal Year Ended June 30, 2022 (see Note 2) 225,865,062 Adjustments Factors for the Fiscal Year Ended June 30, 2023 (see Note 2):
Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor
x
1.0755000 0.9938000 1.06883190 0.06883190
Adjustment for Inflation and Population 15,546,721
Other Adjustments (Note 5) -
To
tal Adjustments 15,546,721
Appropriations Limit for Fiscal Year Ended June 30, 2023 241,411,783$
CITY OF LANCASTER
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2023
(4)
NOT
E 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, the annual calculation of the appropriations limit is subject to 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, 1990, 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 California governmental agency may adjust it s appropriations limit by either the percentage change in California per capita personal income from the preceding year (which percentage is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Lancaster (the “City”) for fiscal year 2022- 2023 represents the percentage change in California per capita personal income from the preceding year.
NOTE 4 POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City for fiscal year 2022-2023 represents the annual percentage change in the population 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 responsibility for municipal services to, or from, another governmental agency or private entity. The City had no such adjustments for the year ended June 30, 2023.
STAFF REPORT
City of Lancaster
CC 19
5/7/2024
JC
Date: May 7, 2024
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director – Community Development Jocelyn Swain, Senior Planner – Community Development
Subject: Authorization for Additional Budget for KGTY Group, Inc. for the Parkway Village Specific Plan
Recommendation:
Approve Additional Authorization No. 1 to the KGTY Group, Inc. to amend the Professional Services Agreement for the preparation of the Parkway Village Specific Plan.
Fiscal Impact:
$62,400; sufficient funds are available from grant funds received from the California Department of Housing and Urban Development (HCD) Local Early Action Planning (LEAP) grant. This grant fund is in Account No. 23021000.5656.
Background:
In 2020, City of Lancaster staff started work on the preparation of the Parkway Village Specific Plan to allow for a mixed-use area with a variety of housing types, commercial uses, and community amenities. In May 2021, the City was awarded a $500,000 under the LEAP grant from HCD for the Parkway Village Project and the City hired KGTY Group, Inc. to prepare the Specific Plan.
Since the start of the project, the scope and size of the plan area has increased necessitating additional planning efforts. KGTY has requested a budget amendment in the amount of $62,400 to cover the additional work required to prepare the Specific Plan. The Parkway Village Specific Plan and associated Program EIR are anticipated to be complete and start the hearing process towards the end of summer.
JS/sg
Attachments:
KGTY Amendment Request
1 6
2 8
Additional Authorization No. 1 for KGTY
AMENDMENT TO CONTRACT
Submitted to: Jocelyn Swain, Senior Planner
City of Lancaster
44933 Fern Avenue
Date: March 22, 2024
Project Name: Lancaster Parkway Village
Project No: 20200708 (102/104/105)
Lancaster, CA 93534 Re: Planning
661-723-6249 Amendment (AMD) No.: 1
[email protected]
Prepared by: KTGY Group, Inc.
Geoff Graney, Associate Principal
17911 Von Karman Ave., Suite 200
Irvine, CA 92614
949.567.3421
[email protected]
In accordance with the Agreement dated September 23, 2021 between Client and KTGY Group, Inc., authorization is requested to proceed with this Amendment described below, over and above the established contract scope of services.
Scope of Services for this Amendment:
The Scope of Work includes the following:
Phase 102 – Landscape Design Addendum #1 (Floor + Associates) $8,400 This Additional Service is being issued for the landscape design team to attend the additional project coordination meetings due to extended project schedule, ongoing revisions based on City and/or neighborhood input to the landscape graphics and written text as required to finalize the specific plan design guidelines document, and final coordination of the document prior to City Council Approval anticipated for the Fall of 2024.
Phase 104 – Planning Submittals and Approvals (KTGY) $42,000 Refined Land Use Plan Updates
KTGY has updated two (2) land use plans per city comments and site constraints beyond the original scope and fee.
Specific Plan Review and Comment
KTGY will continue to support with Specific Plan updates of design guidelines and development standards. Upon completion of screen check document, KTGY will review and comment on screencheck and draft specific plan document.
Illustration
Prepare one (1) conceptual design illustration to convey the overall character, theme, and design of the conceptual land plan. Watercolor format.
Coordination and Meetings
KTGY will coordinate with project team (city, landscape architect, etc.) on an as-needed basis. Project timeline was extended per City of Lancaster.
KTGY has/will attend up to twenty (20) Teams/Zoom project team biweekly meetings over the 10 month period which started in January 2024.
Public Hearings
Planning Commission and City Council
Attend up to two (2) Planning Commission and City Council hearings. The hearing(s) will be held in Lancaster. Geoff Graney will assist with the presentations. KTGY will prepare PowerPoint presentations, graphics and/or handout materials for use at public hearings, as needed. It is assumed that presentation materials will consist of graphics previously prepared in the Specific Plan tasks.
Phase 105 – Specific Plan Addendum #1 (T&B Planning) $12,000 Prepare Draft Specific Plan
The work effort for this task has exceeded original estimates. As a result, additional funding is need to complete preparation of the Draft Specific Plan document.
Meetings, Coordination, Public Hearings
The number of meetings combined with the project coordination efforts have exhausted the budget for this Task. Additional funding is needed to continue involvement and engagement in project meetings and providing assistance as represented in the description for Task 3.1.
Compensation for our services shall be on an hourly T&M basis using our standard hourly rate schedule which is attached as Exhibit “A” with the following estimated maximums, plus reimbursable expenses.
Phase 102 – Landscape Design Addendum #1 (Floor + Associates) $8,400 Phase 104 – Planning Submittals and Approvals (KTGY): $42,000 Phase 105 – Specific Plan Addendum #1 (T&B Planning): $12,000 TOTAL $62,400
KTGY Group, Inc. is authorized to proceed with this Amendment described above upon receipt of this signed amendment. All terms and conditions of the original contract apply to this Amendment.
KTGY Group, Inc. City of Lancaster
Signed:
Name: Geoff Graney
Signed:
Name:
. Title: Associate Principal Title:
Date: March 22, 2024 Date:
Finance: ___
ADDITIONAL AUTHORIZATION NO. 1
FOR CONSULTANT SERVICES
TO: KGTY Group, Inc.
Attn: Geoff Graney, Associate Principal
17911 Von Karman Avenue, Suite 200
Irvine, CA 92614
Under the terms of our Professional Consultant Services Agreement dated October 12, 2021, you are authorized to proceed with the following consulting services:
Project: Parkway Village Specific Plan
Original Authorization: $245,000
Previous Additional Authorization: $0.00
This Authorization: $62,400
Total Not to Exceed: $307,400
Date Required: Immediately
Project Manager: Jocelyn Swain
ACCEPTED:
_____________________________ ______________________
Geoff Graney Date
KGTY Group, Inc.
AUTHORIZED:
_____________________________ _______________________ Jason Caudle Date
City Manager
STAFF REPORT
City of Lancaster
CC 20
5/7/2024
JC
Date:May 7, 2024
To: Mayor Parris and City Council Members
From: George N. Harris II, Director of Finance/IT
Subject:Expenditure Appropriations for Certain 2023-2024 Road Maintenance and Rehabilitation Account (RMRA) Projects eligible under Senate Bill 1 (SB 1), The Road Repair and Accountability Act of 2017.
Recommendation:
1. Appropriate $1,447,759.16 in SB 1 Gas Tax funds to Street Sweeping Maintenance project account number CP12ST057.CONST GL Code 21549900.8000.
2. Appropriate $5,345,421.86 in SB 1 Gas Tax funds to Streets and Roadway Maintenance and Repairs project account number CP12ST058.CONST GL Code 21549900.8000.
Fiscal Impact:
None
Background:
The Road Repair and Accountability Act of 2017, Senate Bill 1 (SB 1), was passed by the State Legislature and signed into law by the Governor in April 2017. The purpose of the bill is to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system. SB 1 increases per gallon fuel excise taxes, increases diesel fuel state taxes and vehicle registration fees and provides for inflationary adjustments to tax rates in future years.
SB 1 emphasizes the importance of accountability and transparency; therefore, in order to be eligible for RMRA funding, the statute requires cities to adopt a proposed project list at a regular public meeting. The list of proposed projects must include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. Cities must also adopt RMRA-funded projects into their operating or capital improvement budget. Cities must then submit the completed SB 1 Proposed Project List form to the California Transportation Commission (CATC) in order to receive its apportionment of RMRA funds from the State Controller.
1 6
3 0
On June 13, 2023, the Council adopted resolution 23-29, approving Senate Bill 1 (SB 1) Proposed Project List Form and allocating funds in the fiscal year 2023-2024 Capital Improvement Budget to clarify Road Maintenance and Rehabilitation Account (RMRA) funded projects.
Subsequent to the submittal of the approved 2023-2024 list to the California Transportation Commission, the need for additional eligible projects was identified.
As noted in the California Transportation Commission adopted “Road Repair and Accountability Act of 2017, Local Streets and Roads Funding Program, 2021 Reporting Guidelines” (dated March 2021): “Pursuant to SHC Section 2034(a)(1), the project list shall not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities, so long as the projects are consistent with SHC Section 2030(b). After the submittal of the project list to the Commission, in the event a city or county elects to make changes to the project list pursuant to the statutory provision noted above, formal notification of the Commission is not required. However, standard reporting forms will provide an opportunity for jurisdictions to annually communicate such changes to the Commission as part of the Annual Expenditure Reporting process.” Accordingly, the addition of these projects to the City of Lancaster’s list of 2023-2024 projects will be communicated to the Commission as part of the Annual Expenditure Reporting process.
Project savings and reduced scope of existing SB 1 funded projects within the Capital Improvement Program (CIP) have been returned to fund balance and are sufficient to offset the appropriations herein, resulting in a net zero fiscal impact.
Attachment:
Additional Project List
City County
Fiscal Year Initially
Proposed
Proposed Project
Status Project Type Title Description Location Components Est Start Est
Completion Est Useful Life
Assembly
Districts
Senate
Districts
Lancaster Los Angeles 23/24 New Road Maintenance &
Rehabilitation Street Sweeping Maintenance
This project will include preventative maintenance street sweeping to keep roadways clear and prevent the build up of debris within the curb and gutter and minimize damage to pavement surfaces associated with repetitive vehicular movements through standing water.
Citywide Pre-construction 7/1/2023 6/30/2024 5-10 21 36 Lancaster Los Angeles 23/24 New Road Maintenance &
Rehabilitation Streets and Roadway Maintenance and Repairs This project will include preventative maintenance and repairs of asphalt concrete roadway, concrete assets within the street right of way (including but not limited to curb, gutter, and/or sidewalk), roadway drainage swales adjacent to paved edge of pavement within the street right-of-way (to prevent ponding of water within the pavement section); roadway materials; roadway maintenance equipment replacement, roadway maintenance vehicle operations and fuel, roadway related pubclic facilities administrative costs; emergency repairs to roadway and street assets; removal of graffiti and utility locator markings within the street right-of-way; maintenance of pavement markings and roadway striping; contract and force account (in-house) maintenance services; illegal dumping removal within the roadway and street right-of-way; and maintenance of traffic signage.
City Core bounded by Avenue I to Avenue L and
30th W to 20th Street east, with City outer core as
needed; these limits are subject to be changed.
Pre-Construction 7/1/2023 6/30/2024 5-10 21 36
STAFF REPORT
City of Lancaster
CC 21
5/7/2024
JC
Date: May 7, 2024
To: Mayor Parris and City Council Members
From: Sonya Patterson, Director of Parks, Arts, Recreation and Community Services Subject: LANCASTER MUNICIPAL STADIUM OPERATING AGREEMENT AMENDMENT No. 1
Recommendation:
A. Approve Amendment No. 1 to the Lancaster Municipal Stadium Operating Agreement.
B. Authorize the City Manager or his designee to execute Operating Agreement Amendment.
Fiscal Impact:
Approval of the Operating Agreement Amendment No. 1 will result in the City receiving an increase in annual revenue in the amount of $60,000 year one (1), and increasing by two percent (2%) annually.
Background:
On August 23, 2023 City Council approved the operating agreement for the Lancaster Municipal Stadium with Antelope Valley Soccer, Inc. (Club). Through this agreement the club and the City of Lancaster (City) are collaborating to bring professional soccer to the Antelope Valley with games to be played in a renovated Lancaster Municipal Stadium (Stadium). The parties have developed a budget and plan for the Stadium renovation (Stadium Master Plan) intended to optimize the professional soccer experience for fans and players alike; and with the purposes of staging professional and amateur men’s and women’s soccer competitions as part of the United Soccer League (USL) on a year-round basis.
Among other benefits, the project is intended to revitalize the Stadium and to create economic, educational, and sporting opportunity for the community. Above all, the project is intended to create a point of civic pride for entire Antelope Valley for generations to come.
The following is a summary of the proposed Operating Agreement Amendments:
1 6
3 1
1.4 Term: The term of the agreement will remain for 10 years, with the Operator having the option to renew for an additional 10-year period. The automatic termination language is amended to include: (b) the parties fail to agree on the final specifications of the planned Stadium renovations by August 31, 2024.
Addition of 3.2 Facility Enhancement Fee: The Operator shall pay to the City an annual fee in the amount of Sixty Thousand Dollars ($60,000.00) for facility enhancements provided by the City pursuant to this Agreement (the “Facility Enhancement Fee”).
Pursuant and subject to section 3.3, the License Operating Fee shall be paid by the Operator in equal quarterly installments beginning on the first day of the fourth full month after the Effective Date. Beginning on the first (1st) anniversary of the Effective Date, the Facility Enhancement Fee shall be increased annually by two percent (2%). In the event the Operator fails to timely make any quarterly Facility Enhancement Fee payment, the City may elect (upon written notice to the Operator) to require all future quarterly Facility Enhancement Fee payments be made in advance.
11. Default by Operator and City’s Remedies: the sections below are amended:
11.1 Default by Operator. Subject to Force Majeure as defined in section 14.20, each of the following constitutes an “Event of Default by Operator”:
11.1.1. The Operator shall fail to timely make any payments to the City as required hereunder, including, without limitation, any License Operating Fee and/or Facility Enhancement Fee payment when due to the City within thirty (30) days after written notice from the City for nonpayment thereof;
12.1 Default by City. Subject to Force Majeure as defined in section 14.20, each of the following constitutes an “Event of Default by City”:
12.1.1 The City shall fail to keep, perform and observe each and every promise, covenant, condition and agreement set forth in this Agreement on its part to be kept, performed or observed within thirty (30) days after written notice of default thereunder from the Operator, except where fulfillment of the City’s obligation requires activity over a period of time and the City shall have commenced to perform whatever may be required to cure the particular default within ten (10) days after such notice and continues such performance diligently and without interruption except for causes beyond its control. Notwithstanding the foregoing, the Parties acknowledge and agree that the Stadium plan and the timely completion of the City’s obligation under Article 5 are required by the Operator to comply with USL requirements and that time is an essential matter herein. Subject to Force Majeure as defined in section 14.20, in the event that the Operator cannot use the Stadium prior to the start of any season in which the Operator will play that season (as reasonably determined by Operator and/or USL), the Operator will have the right to terminate this Agreement.
13. Option to Renew License. Provided that the Operator is not in default under the Agreement, the Operator, will at its option have the right to renew this Agreement during the Term for the following additional 10 years (the “Renewal Term”) commencing on the day following the expiration of the Term, which option must be exercised by notice in writing to the City no sooner than twelve (12) months but no later than three (3) months 1 6
3 1
prior to the expiration of the Term. If the Operator exercises its right to renew its License pursuant to this section 13, all the terms and conditions in this Agreement will be binding during the Renewal Term, except for (a) the right of the renewal exercised, (b) the License Operating Fee which shall be adjusted as of the first day of the Renewal Term by the percentage increase equal to CPI for the previous 12-month period. If the CPI for the previous twelve-month period decreases or remains unchanged, then the License Operating Fee for the Renewal Term will be the previous year’s License Operating Fee, and (c) the Facility Enhancement Fee shall continue to increase pursuant to Section 3.2 hereof.
14.20 Force Majeure Events. As used in this Agreement, the term “Force Majeure Event” means declared or undeclared war, acts of terrorism, sabotage, riot or acts of civil disobedience, acts or omissions of governmental agencies, accidents, fires, explosions, floods, earthquakes, or other acts of God, strikes, labor disputes, shortages of materials, or any other event not within the control of the Party claiming force majeure and not caused by the gross negligence or intentional wrongful conduct of the Party claiming force majeure.
SP:sp
Attachment:
Lancaster Municipal Stadium Operating Agreement Amendment No. 1 OPERATING AGREEMENT –
AMENDMENT NO. 1
by and between
City of Lancaster,
a California municipal corporation and charter
city
and
Antelope Valley Soccer, Inc
a Delaware corporation
i
TABLE OF CONTENTS
Page
1. OPERATION OF STADIUM. ................................................................................................1
1.1 Grant of Non-Exclusive License to Operate Stadium. ..............................................1
1.2 Operating Standards. .....................................................................................................1
1.3 Independent Contractor; No Property Right..................................................................1
1.4 Term. .............................................................................................................................2
2. USE OF THE STADIUM . .......................................................................................................2
2.1 Operator Use..................................................................................................................2
2.2 City Events. ...................................................................................................................2
2.3 Operator Events. ............................................................................................................2
2.4 Joint Events....................................................................................................................2
2.5 Public Parking................................................................................................................2
2.6 Lot Rentals.....................................................................................................................3
2.7 Proper Purpose...............................................................................................................3
2.8 Community Event..........................................................................................................3
2.9 Stadium Advertising. .....................................................................................................3
2.10 Compliance with USL Standards. .................................................................................3
2.11 Lodging..........................................................................................................................3
3. LICENSE OPERATING FEES. ................................................................................................4
3.1 License Operating Fee. ................................................................................................4
3.2 Payment. .......................................................................................................................4
3.3 Late Fee.........................................................................................................................4
3.4 Operator Right to Revenue. .........................................................................................4
4. UTILITIES...............................................................................................................................54
4.1 Utility Charges. ..........................................................................................................54
4.2 Reimbursement. ............................................................................................................5
4.3 Interruptions of Utility Services. .................................................................................5
5. REPAIRS AND MAINTENANCE. ..........................................................................................5
5.1 City Maintenance, Repairs, and Capital Improvements. ...........................................5
5.2 Routine Maintenance. ................................................................................................65
5.3 Stadium Upgrades........................................................................................................65
6. CONCESSIONS. ......................................................................................................................6
6.1 Operator Right to Sell Concessions; Concession Revenue. ..........................................6
6.2 Concessions at City Events. ......................................................................................76
6.3 Concession Equipment. .............................................................................................76
6.4 Sale of Alcoholic Beverages. ......................................................................................7
7. ESTOPPEL CERTIFICATE. ...................................................................................................7 ii
8. OPERATOR ALTERATIONS. ...............................................................................................7
9. INSURANCE.............................................................................................................................7
9.1 Operator’s Insurance. ...................................................................................................7
9.2 Operator Certificates of Insurance. .............................................................................8
9.3 Damage or Destruction..................................................................................................9
10. NAMING RIGHTS....................................................................................................................9
10.1 Naming Rights. ...........................................................................................................9
11. DEFAULT BY OPERATOR AND CITY’S REMEDIES. .....................................................10
11.1 Default by Operator. ....................................................................................................10
11.2 City’s Remedies. ........................................................................................................11
12. DEFAULT BY CITY AND OPERATOR’S REMEDIES. .....................................................11
12.1 Default by City. ..........................................................................................................11
12.2 Operator’s Remedies. .............................................................................................1211
13. OPTION TO RENEW LICENSE ........................................................................................1211
14. MISCELLANEOUS PROVISIONS........................................................................................12
14.1 City Luxury Box Seats and Community Events. .....................................................12