Lancaster City Council
June 10, 2025

CIT

Y OF LANCASTER

ANNUAL COMPREHENSIVE FINANCIAL REPORT
WITH INDEPENDENT AUDITOR’S REPORT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2024

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

PRINCIPAL CITY OFFICIALS VII

ORGANIZATION CHART VIII

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 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

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO
THE STATEMENT OF ACTIVITIES 22

BUDGETARY COMPARISON STATEMENTS
GENERAL FUND 23
LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND 24

TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL
REVENUE FUND 25

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 26

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 27
STATEMENT OF CASH FLOWS 28

FIDUCIARY FUNDS
STATEMENT OF NET POSITION 29
STATEMENT OF CHANGES IN NET POSITION 30
NOTES TO BASIC FINANCIAL STATEMENTS 31

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS PENSION PLANS

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 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

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 110

OTHER SPECIAL REVENUE FUNDS

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
TRAFFIC SAFETY 135
LA COUNTY REIMBURSEMENT 136
MEASURE H 137
MTA GRANT 138

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
URBAN STRUCTURE PROGRAM 139
SEWER MAINTENANCE DISTRICT 140
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

CITY OF LANCASTER

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
RATIOS OF OUTSTANDING DEBT BY TYPE 164
RATIOS OF GENERAL BONDED DEBT OUTSTANDING 165
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 RAJMAIJ-jl 44933 Fern Avenue
MAYOR COUNCILMEMBER Lancaster, CA 93534
MARVIN CRIST LAUREN HUGHES-LESLIE 661.723.6000
VICE MAYOR COUNCILMEMBER cityoflancasterca.gov

KEN MANN TROUS NIEBLA

COUNCILMEMBER CITY MANAGER

RODRICKARMAUN

CHIEF OF POLICE
May 29, 2025
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 that ended June 30, 2024. 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, the 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, the governmental funds section contains the component units of the Lancaster Housing Authority, Lancaster Community Services Foundation, Lancaster Public Financing Authority, and Lancaster Power Authority.
(i)
The City provides a broad range of services associated with the municipality. These services include highways, streets, 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.

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 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 diverse fields of industry. 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.
(ii)
Strategic Initiatives
Public Safety Enhancements
The safety and well-being of our residents remain at the forefront of our priorities. Under the leadership of Lancaster’s first Chief of Police, we have made significant strides in enhancing our hybrid policing model and expanding our community policing efforts. This includes intensifying our focus on crime prevention and community engagement.

The Lancaster Police Department, in
collaboration with the LA Sheriff’s
Department, has implemented several new
initiatives designed to keep Lancaster a
secure place to live and work. Our new
police station is now fully operational,
providing a modern base for our expanded
force. We have also updated our fleet of
police vehicles and hired new officers to
strengthen our presence in the community.

In addition to these enhancements, our
department has embraced cutting -edge AI
technologies to bolster public safety. This includes the deployment of ShotSpotter technology, which accurately detects and locates gunfire incidents in real-time, dramatically improving our response capabilities. The Lancaster Police Department also utilizes drones and participates in advanced training simulations to prepare for a variety of operational scenarios. Furthermore, the Integrated Command Center (ICC) has become a critical asset, providing real-time data and communications support to enhance coordination and response effectiveness across the city.

These advancements support strategic operations such as traffic enforcement and strengthen our Business Watch and Neighborhood Watch programs. Lancaster is also looking at both technology and personnel enhancements to augment our mobility and response speed in critical situations and prioritize traffic enforcement to make our streets safer.

Hydrogen City Advancements
Lancaster proudly continues to lead in the hydrogen energy sector with the recent launch of FPH2, a pioneering initiative in partnership with the City of Industry. This collaboration highlights our commitment to expanding green hydrogen production and reinforces our position as a frontrunner in this critical industry. We are set to further enhance our capabilities this year by expanding partnerships and seeking additional funding opportunities. (iii)
Our ongoing collaboration with industry leaders, including the Pacific Hydrogen Alliance and ARCHES, underscores our dedication to clean energy innovation and sustainable
development. The launch of FPH2 marks a significant
milestone in our journey towards a sustainable future,
positioning Lancaster not just as a participant but as a leader in the global transition to cleaner energy sources.

This initiative not only advances our green energy goals but also promises to catalyze economic growth and job creation in the renewable energy sector within our community.

Economic and Community Development
Our local business sector is vibrant and dynamic, driving economic growth and enhancing housing affordability across Lancaster. We are committed to supporting this momentum through initiatives like the Open Rewards program, which incentivizes local shopping and bolsters small businesses by increasing consumer engagement and sales.

Our strategies are focused on nurturing local businesses, attracting new investments, and implementing housing initiatives tailored to meet the diverse needs of our residents. We are also prioritizing workforce development to equip our community with the necessary skills for emerging job opportunities, especially in our growing industrial sectors. This effort not only supports existing industrial businesses but also attracts new industries to our area, fostering long -term economic resilience and expansion. In addition, we are actively recruiting new businesses through business -friendly policies and reinvesting increased tax revenues directly into our community, driving meaningful progress for our businesses and residents alike.

Enhancing Quality of Life Through Technology and Innovation In FY25, we aim to leverage advanced technology to upgrade city services, enhance residents' quality of life, and establish Lancaster as a model for smart city initiatives. A key part of this effort is the continued development of our smart infrastructure and improving connectivity across the city.

Additionally, we are working to integrate Citibot, our innovative website chatbot, to enhance how residents interact with city services. By using Citibot on our City website, residents can *
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report issues, search for information, and receive instant responses, significantly improving the efficiency of service delivery and boosting community engagement. This tool is a vital component of our strategy to make Lancaster a smarter, more responsive City.

Public Engagement and Inclusivity
Reflecting on the successes of our community engagement and special events, we remain dedicated to creating a more connected and inclusive Lancaster. Our upcoming initiatives will expand community outreach, enhance local events that celebrate our city’s diversity, and provide ample opportunities for public participation in governance.

Significant renovations are underway at Samaritan's Purse Park to better serve our residents and enhance their recreational experiences. Additionally, we are finalizing plans for a state-of- the-art aquatics center that will provide a new hub for family and community activity.

We're also adding more programming and engagement
opportunities in our parks, ensuring that these spaces
continue to foster community bonds and support a vibrant public life in Lancaster.

Beautification and Clean-Up Projects
In our ongoing mission to enhance community pride and
maintain a welcoming cityscape, the City of Lancaster has expanded its beautification efforts through the Team Up Lancaster program. This initiative empowers residents, businesses, organizations, and schools to take an active role in keeping Lancaster clean and vibrant.

Team Up Lancaster offers multiple ways for the community to get involved —from adopting a roadway for scheduled clean -ups, to participating in one- day citywide events, to removing graffiti and illegal dumping. We provide the tools and support needed to ensure every group’s success so participants can not only make a visible impact on our neighborhoods but also gain recognition for their efforts, helping to strengthen community spirit and engagement.

With new partnerships forming between local schools and volunteer groups, we are instilling a sense of civic responsibility and pride in the next generation. Together, through shared commitment and action, we are creating cleaner streets, more beautiful neighborhoods, and a stronger Lancaster for all.
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Youth Development Initiatives
Lancaster continues to invest in the future by supporting a wide range of youth development programs that empower, educate, and inspire. At the heart of these efforts is the IMPACT Initiative, a scholarship-based volunteer program that offers high school students valuable job training, leadership development, and community service opportunities. By completing 100 hours of volunteer work, participants not only earn
scholarships but also build lifelong skills and connections that support future success.

Additionally, the Lancaster Community Center (LCC) has
emerged as a dynamic hub for youth engagement and
personal growth. Offering programming for children as
young as six months through the teenage years, the
Center features enriching educational experiences such
as EdVentures Preschool, after-school tutoring, and
creative arts programs, teen game nights, and STREAM-based learning activities. It also provides open access to a computer lab, game room, and maker space, all designed to foster curiosity, innovation, and community connection.

The LCC goes beyond traditional recreation by providing exposure to music, technology, financial literacy, and entrepreneurship-empowering Lancaster's youth with the tools and resources to succeed in today's rapidly changing world.

As we continue to expand partnerships and elevate these programs, our focus remains clear:
to nurture confident, capable young residents who are ready to contribute to a bright future for Lancaster.

Respectfully,
�7
George N. Harris II
Senior Director/ Treasurer - Administrative Services Department (vi)
City of Lancaster

CITY COUNCIL
R. Rex Parris Mayor
Marvin E. Crist Vice Mayor
Raj Malhi Council Member
Kenneth Mann Council Member
Lauren Hughes-Leslie Council Member

CITY DIRECTORS/MANAGERS
Jason D. Caudle City Manager
Trolis Niebla Assistant City Manager
Allison E. Burns City Attorney
George N. Harris II Finance and Information
Technology Director
Rodrick Armalin Public Safety Director
Sonya Patterson Parks, Recreation, Arts &
Community Services Director
Marissa Diaz Public Works Director
Larissa De La Cruz Community Development
Director
(vii)

CITY OF LANCASTER

ORGANIZATION CHART
YEAR ENDED JUNE 30, 2024
(viii)

FINANCIAL SECTION

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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, 2024, 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, 2024, 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.

Emphasis of Matter
As discussed in Note 20 to the financial statements, the City made restatements to beginning fund balance/net position resulting from correction of an error and for changes within the financial reporting entity. Our opinions are not modified with respect to this matter.

Honorable Mayor and Members of the City Council
City of Lancaster
(2)
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.

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.

Honorable Mayor and Members of the City Council
City of Lancaster
(3)
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 May 22, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
May 22, 2025

Ma
nagement’s Discussion and Analysis
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, 2024. 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 $113,733,198
 The cost of the General Fund was $126,976,274
 The General Fund reported revenues in deficit of expenditures of $13,243,076  For the General Fund, actual resources available for appropriation (revenue inflows and fund balance) was greater than final budget by $10,323,037; while actual appropriations (outflows) were less than the final budget by $32,477,878
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.

During 2024 California Choice Energy Authority (Energy Authority) transitioned into a separate reporting entity and is no longer considered a component unit of the City. Previously, the City of Lancaster’s City Council members served as the Board of Directors for the Energy Authority. Beginning in January 2024, each member agency of the Energy Authority appointed its own representative to serve on the Board this resulted in a decrease in net position of business-type activities by 1 million as of July 1, 2023. Additionally, the City determined it was appropriate to split apart the special revenue fund LA County Reimbursement into two reporting funds, Measure H and LA County Reimbursement which resulted in the fund balance increasing as of July 1, 2023 in the LA County Reimbursement Fund by approximately 217k.

The City recorded a correction of an error in fiscal year 2024 that resulted in a prior period adjustment. The City identified several land held for resale purchases, disposals, and contributions that occurred a prior period and should have been recorded previously that resulted in an increase to beginning net position in governmental activities by 2.2 million and a decrease in fund balance in the Lancaster Housing Authority .by 2 million.

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, (5)
P
ublic Safety, Community Development, Parks, Recreation and Arts, Development Services, and Housing and Neighborhood Revitalization. The business-type activities include the Lancaster Power Authority and Lancaster Choice Energy.

The government-wide financial statements include the blending of separate legal entities: Lancaster Housing Authority, Lancaster Community Services Foundation, Lancaster Financing Authority and Lancaster Power 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.

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) 23/24 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.

Effectively January 2024, the California Choice Energy Authority became a separate reporting entity and is no longer a component unit of the City. Previously, members of the City of Lancaster’s City Council served as the Board members for the Energy Authority. In January 2024, each Member of the Energy Authority appointed a representative to be a Board Member.

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 and Lancaster Choice Energy.
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F
iduciary 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.

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 $38,108,496.

Fiscal Year
2023 2024
Expenses
Governmental activities:

General Government $ 37,100,475 $ 32,412,932
Public Safety 38,988,488 47,567,575
Community Development 1,297,964 10,454,150
Parks, Recreation and Arts 24,557,617 29,566,701
Development Services 82,016,861 82,783,437
Housing and Neighborhood Revitalization 5,171,226 30,338,926 Interest on long-term debt 3,036,813 2,548,299
Total primary governmental activities expenses $ 192,169,444 $ 235,672,020 Program Revenues (see Schedule 3)
Governmental activities:

Charges for services:

General Government $ 1,156,517 $ 418,433
Public Safety 681,722 681,642
Community Development 816,687 303,034
Parks, Recreation and Arts 3,415,139 2,935,778
Development Services 20,662,559 21,870,288
Housing and Neighborhood Revitalization 3,276 -
Operating grants and contributions 54,094,552 48,104,288 Capital grants and contributions 2,997,354 19,419,463 Total governmental activities program revenues $ 83,827,806 $ 93,732,926 Governmental activities $ (108,341,638) $ (141,939,094) Other Changes in Net Assets
Governmental activities:

Taxes:

Property taxes $ 33,007,795 29,116,559
Franchise taxes 7,451,316 11,491,150
Transient occupancy taxes 2,676,338 2,294,723
Business licenses taxes 855,151 1,489,181
Other taxes 851,184 770,718
Intergovernmental 180,915 218,014
Intergovernmental - state shared sales taxes 49,229,826 47,258,659 Investment Earnings 3,977,989 6,536,775
Miscellaneous 2,157,473 2,335,357
Gain on sale property 433,995 2,520,183
Transfers 926,685 2,132,357
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Total governmental activities $ 101,748,667 $ 106,163,676 Change in Net Assets
Governmental activities $ (6,592,971) $ (35,775,418)
Business-Type Activities. Business-type activities increased the City of Lancaster’s net position by $937,546 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. 2023 2024
Expenses
Business-type activities:

Lancaster Power Authority $ 1,348,432 $ 1,339,619 Lancaster Choice Energy 67,149,222 79,779,572
California Choice Energy Authority 7,517,372 -
Total business-type activities expenses $ 76,015,026 $ 81,119,191 Program Revenues (see Schedule 3)
Business-type activities:

Charges for services:

Lancaster Power Authority $ 1,910,499 $ 1,725,547 Lancaster Choice Energy 68,549,854 81,950,853
California Choice Energy Authority 8,015,547 -
Total business-type activities program revenues $ 78,475,900 $ 83,676,400 Business-type activities: 2,460,874 2,557,209
Other Changes in Net Assets
Business-type activities:

Investment Earnings $ 313 $ 368,695
Miscellaneous 3,273,485 143,999
Transfers (926,685) (2,132,357)
Total business-type activities $ 2,347,113 $ (1,619,663) Total Primary Government Revenues, Contributions,
and Transfers $ 80,823,013 $ 82,056,737
Change in Net Assets
Business-type activities 4,807,987 937,546
T
he 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.
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Ci
ty of Lancaster- Cost of Services
(in thousands)
City of Lancaster Governmental Activities
(in Thousands)
City of Lancaster Governmental Activities
Revenue & Expense by Source
- 20,000,000.00 40,000,000.00 60,000,000.00 80,000,000.00 100,000,000.00 Ge
neral Government
Public Safety
Community Development
Parks, Recreation and Arts
Development Services
Housing and Neighborhood Revitalization
Expense Revenue
Total Cost Net Cost
of Services of Services
2024 2024
General Government $ 32,413 $ (26,722)
Public Safety 47,568 (38,898)
Com
munity Development 10,454 (4,433)
Parks, Recreation and Arts 29,567 (26,534) Dev
elopment Services 82,783 (12,699)
Hous
ing and Neighborhood
Revitalization 30,339 (30,104)
Totals $ 233,124 $ (139,390)
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F
inancial 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 $206,346,826. This is a decrease of $22,361,332 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 $113,719,835. This is a decrease of $5,516,617 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 $1,143,708.

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 $43,480,972. The Lancaster Housing Authority had a FY24 beginning balance restatement of $2,026,084. This restatement is due to land held for resale error corrections from prior years. 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 $5,717,619.

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 two funds of this type: Lancaster Power Authority and Lancaster Choice Energy.

The net position of the Lancaster Power Authority and Lancaster Choice Energy at the end of the year was $10,690,131 an increase over last year of $937,546. 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.

General Fund Budgetary Highlights
The actual amount of expenditures for the General Fund at year-end were $32,477,878 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 $42,800,915 in actuals over appropriations. (10)
Cap
ital Asset and Debt Administration
Capital Assets. At the end of FY 2024, the City had $889.2 million invested in a broad range of capital assets, including land, buildings, infrastructure, equipment, and intangible assets net of accumulated depreciation.

The City’s Capital Improvement Plan requested $29 million in new capital projects through fiscal year 2023- 24 on new projects. Funding will come from current fund balances and projected revenues. The most significant projects include Mariposa Park Improvements, Ave J/SR 138 Interchange, the acquisition and improvement of a new Public Safety Building among other citywide street improvements.

Capital Assets
(in Thousands)

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 decreased by $4 Million from the prior year. As of June 30, 2024, the City of Lancaster had accrued employee benefits outstanding of $4,016,802.

The City’s AA credit rating remained unchanged for FY 23/24.

Economic Factors and Next Year’s Budgets and Rates
On June 25, 2024, the City Council adopted and approved the budget for FY 24/25 along with the Five-Year Capital Improvement Program. Appropriations (including transfers) of $211.7 million were adopted for the 24/25 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.

Governmental Business-type Total Capital
Activities Activities Assets
La
nd $ 42,050 $ 42,050
Structures and
Improvements 91,500 91,500
F
urniture and Equipment 21,863 21,863
I
nfrastructure 1,817,393 1,817,393
Con
struction in Progress 64,472 64,472
Rig
ht of Use Assets 4,930 4,930
Intangible Assets - 23,487 23,487
A
ccumulated Depreciation (1,152,970) (11,743) (1,164,713) Net
Capital Assets $ 889,237 $ 11,744 $ 900,981
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C
urrent 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. (12)

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BASIC FINANCIAL STATEMENTS

CITY OF LANCASTER

STATEMENT OF NET POSITION
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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GovernmentalBusiness-TypeActivitiesActivitiesTotalASSETSCash and Investments122,389,268$ 6,296,353$ 128,685,621$ Receivables:Accounts10,869,007 22,473,363 33,342,370 Taxes11,643,525 - 11,643,525 Accrued Interest422,783 - 422,783 Leases1,059,701 - 1,059,701 Due from Other Governments21,454,150 1,945,599 23,399,749 Notes and Loans5,446,732 - 5,446,732 Prepaid Items4,759,455 21,375,407 26,134,862 Internal Balances12,018,696 (12,018,696) - Inventories56,458 - 56,458 Land Held for Resale17,738,883 - 17,738,883 Advances to Successor Agency65,096,230 - 65,096,230 Restricted Assets:Cash and Investments15,776,994 571 15,777,565 Capital Assets:Nondepreciable106,521,733 - 106,521,733 Depreciable782,714,952 11,743,762 794,458,714 Total Assets1,177,968,567 51,816,359 1,229,784,926 DEFERRED OUTFLOWS OF RESOURCESDeferred Amounts on Pension Plan24,512,306 - 24,512,306 Deferred Amounts on OPEB4,612,567 - 4,612,567 Total Deferred Outflows of Resources29,124,873 - 29,124,873 LIABILITIESAccounts Payable21,953,773 10,748,004 32,701,777 Accrued Liabilities3,162,157 40,132 3,202,289 Accrued Interest742,730 62,808 805,538 Retentions Payable1,429,002 - 1,429,002 Unearned Revenues1,417,270 13,070,757 14,488,027 Deposits Payable1,719,044 350,000 2,069,044 Noncurrent Liabilities:Due Within One Year - Other6,717,585 830,000 7,547,585 Due in More than One Year:Other81,640,285 16,024,527 97,664,812 Net Pension Liability82,129,731 - 82,129,731 Net OPEB Liability5,305,738 - 5,305,738 Total Liabilities206,217,315 41,126,228 247,343,543 DEFERRED INFLOWS OF RESOURCESDeferred Amounts on Leases1,021,500 - 1,021,500 Deferred Amounts on Pension Plan1,621,522 - 1,621,522 Deferred Amounts on OPEB6,613,121 - 6,613,121 Total Deferred Inflows of Resources9,256,143 - 9,256,143 NET POSITIONNet Investment in Capital Assets816,750,637 (5,110,765) 811,639,872 Restricted for:Community Development Projects2,534,309 - 2,534,309 Public Safety284,928 - 284,928 Parks, Recreation, and Arts2,131,207 - 2,131,207 Development Services50,899,054 - 50,899,054 Housing and Neighborhood Revitalization56,793,673 - 56,793,673 Capital Projects19,773,795 - 19,773,795 Unrestricted42,452,380 15,800,896 58,253,276 Total Net Position 991,619,983$ 10,690,131$ 1,002,310,114$

CITY OF LANCASTER

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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ChargesOperatingCapitalfor Grants and Grants andFunctions/ProgramsExpenses Services Contributions ContributionsGOVERNMENTAL ACTIVITIESGeneral Government 32,412,932$ 418,433$ 5,272,880$ -$ Public Safety47,567,575 681,642 7,987,854 - Community Development 10,454,150 303,034 5,717,738 - Parks, Recreation, and Arts 29,566,701 2,935,778 96,653 - Development Services 82,783,437 21,870,288 28,794,504 19,419,463 Housing and Neighborhood Revitalization 30,338,926 - 234,659 - Interest and Other Charges 2,548,299 - - - Total Governmental Activities235,672,020 26,209,175 48,104,288 19,419,463 BUSINESS-TYPE ACTIVITIESLancaster Power Authority 1,339,619 1,725,547 - - Lancaster Choice Energy 79,779,572 81,950,853 - - Total Business-Type Activities 81,119,191 83,676,400 - - Total Government 316,791,211$ 109,885,575$ 48,104,288$ 19,419,463$ Program Revenues

CITY OF LANCASTER

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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Governmental Business-TypeFunctions/ProgramsActivities Activities TotalGOVERNMENTAL ACTIVITIESGeneral Government (26,721,619)$ -$ (26,721,619)$ Public Safety (38,898,079) - (38,898,079) Community Development(4,433,378) - (4,433,378) Parks, Recreation, and Arts (26,534,270) - (26,534,270) Development Services (12,699,182) - (12,699,182) Housing and Neighborhood Revitalization (30,104,267) - (30,104,267) Interest and Other Charges (2,548,299) - (2,548,299) Total Governmental Activities (141,939,094) - (141,939,094) BUSINESS-TYPE ACTIVITIESLancaster Power Authority- 385,928 385,928 Lancaster Choice Energy - 2,171,281 2,171,281 Total Business-Type Activities - 2,557,209 2,557,209 Total Government (141,939,094) 2,557,209 (139,381,885) GENERAL REVENUES AND TRANSFERSTaxes:Property Taxes, Levied for General Purposes 29,116,559 - 29,116,559 Franchise Taxes 11,491,150 - 11,491,150 Transient Occupancy Taxes 2,294,723 - 2,294,723 Business Licenses Taxes 1,489,181 - 1,489,181 Other Taxes 770,718 - 770,718 Intergovernmental 218,014 - 218,014 Intergovernmental - State Shared Sales Tax47,258,659 - 47,258,659 Investment Earnings 6,536,775 368,695 6,905,470 Miscellaneous 2,335,357 143,999 2,479,356 Gain on Sale of Property 2,520,183 - 2,520,183 Transfers 2,132,357 (2,132,357) - Total General Revenues and Transfers 106,163,676 (1,619,663) 104,544,013 CHANGE IN NET POSITION(35,775,418) 937,546 (34,837,872) Net Position - Beginning of Year, as Previously Presented 1,025,190,861 10,762,536 1,035,953,397 Change Within Financial Reporting Entity- (1,009,951) (1,009,951) Error Correction2,204,540 - 2,204,540 Net Position - Beginning of Year, as Restated1,027,395,401 9,752,585 1,037,147,986 NET POSITION - END OF YEAR991,619,983$ 10,690,131$ 1,002,310,114$ Net (Expenses) Revenue andPrimary GovernmentChanges in Net Position

CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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Debt Service
Fund
Lancaster Transportation Lancaster
Housing Development Financin g
General Authorit y Authorit y Authority
ASSETS
Pooled Cash and Investments 16,563,224 $ 14,299,959 $ - $ 34,704,028$ Receivables:

Accounts 1,854,112 131,936 - - Taxes 8,910,360 - - - Accrued Interest 422,783 - - - Leases 1,059,701 - - - Due from Other Governments 1,978,765 - - - Notes and Loans, Net 1,080,451 3,776,220 - - Prepaid Items 4,590,099 17,045 - 900 Due from Other Funds 71,348,236 - - - Inventories 56,458 - - - Land Held for Resale - 17,738,883 - - Advances to Successor Agency 45,747,029 19,349,201 - - Restricted Assets:

Cash and Investments with Fiscal Agents - - - 15,776,515 Total Assets 153,611,218 $ 55,313,244 $ - $ 50,481,443$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable 13,906,722 $ 151,264 $ 79 $ 533,867$ Accrued Liabilities 2,337,868 20,034 2,954 - Unearned Revenues - - - - Deposits Payable 1,669,044 50,000 - - Due to Other Funds - - 933,636 44,227,376 Retentions Payable 322,453 - 207,039 2,581 Total Liabilities 18,236,087 221,298 1,143,708 44,763,824

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Leases 1,021,500 - - - Deferred Inflows - Land Held for Resale - 6,563,702 - - Unavailable Revenues 20,633,796 5,047,272 - - Total Deferred Inflows of Resources 21,655,296 11,610,974 - -

FUND BALANCES
Nonspendable:

Notes and Loans 1,080,451 - - - Prepaid Items 4,590,099 17,045 - 900 Inventories 56,458 - - - Advances to Successor Agency 25,609,169 - - - Restricted:

Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services - - - - Housing and Neighborhood Revitalization - 43,463,927 - - Capital Projects - - - 5,716,719 Committed:

Contingency Reserve 51,150,088 - - - Assigned:

Employee Benefits 4,016,802 - - - Legal Claims 2,146,000 - - - Capital Projects 2,357,535 - - - Unassigned 22,713,233 - (1,143,708) - Total Fund Balances (Deficit) 113,719,835 43,480,972 (1,143,708) 5,717,619 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 153,611,218 $ 55,313,244 $ - $ 50,481,443$ Special Revenue Funds

CITY OF LANCASTER
BALANCE SHEET – GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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OtherTotalGovernmentalGovernmental FundsFundsASSETSPooled Cash and Investments56,822,057$ 122,389,268$ Receivables:Accounts8,882,959 10,869,007 Taxes2,733,165 11,643,525 Accrued Interest- 422,783 Leases- 1,059,701 Due from Other Governments19,475,385 21,454,150 Notes and Loans, Net590,061 5,446,732 Prepaid Items151,411 4,759,455 Due from Other Funds- 71,348,236 Inventories- 56,458 Land Held for Resale- 17,738,883 Advances to Successor Agency- 65,096,230 Restricted Assets:Cash and Investments with Fiscal Agents479 15,776,994 Total Assets88,655,517$ 348,061,422$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable7,361,841$ 21,953,773$ Accrued Liabilities801,301 3,162,157 Unearned Revenues1,417,270 1,417,270 Deposits Payable- 1,719,044 Due to Other Funds14,168,528 59,329,540 Retentions Payable896,929 1,429,002 Total Liabilities24,645,869 89,010,786 DEFERRED INFLOWS OF RESOURCESDeferred Inflows - Leases- 1,021,500 Deferred Inflows - Land Held for Resale- 6,563,702 Unavailable Revenues19,437,540 45,118,608 Total Deferred Inflows of Resources19,437,540 52,703,810 FUND BALANCESNonspendable:Notes and Loans- 1,080,451 Prepaid Items151,411 4,759,455 Inventories- 56,458 Advances to Successor Agency- 45,747,029 Restricted:Community Development Projects1,276,024 1,276,024 Public Safety284,928 284,928 Parks, Recreation, and Arts2,131,207 2,131,207 Development Services50,819,704 50,819,704 Housing and Neighborhood Revitalization1,625,058 45,088,985 Capital Projects- 5,716,719 Committed:Contingency Reserve- 51,150,088 Assigned:Employee Benefits- 4,016,802 Legal Claims- 2,146,000 Capital Projects- 2,357,535 Unassigned(11,716,224) (10,284,559) Total Fund Balances (Deficit)44,572,108 206,346,826 Total Liabilities, Deferred Inflows of Resources, and Fund Balances88,655,517$ 348,061,422$

CITY OF LANCASTER

RECONCILIATION OF THE GOVERNMENTAL FUNDS

BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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Fund Balances - Total Governmental Funds206,346,826$ 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 Assets2,042,207,001 Accumulated Depreciation(1,152,970,316) 889,236,685 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, 2024, are:Bonds, Notes, Loans, Leases, and Subscriptions Payable(82,195,067) Claims and Judgments(2,146,000) Compensated Absences(4,016,802) (88,357,869) 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 Resources24,512,306 Deferred Inflows of Resources(1,621,522) Net Pension Liability(82,129,731) (59,238,947) 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 Resources4,612,567 Deferred Inflows of Resources(6,613,121) Net OPEB Liability(5,305,738) (7,306,292) Accrued interest payable for the current portion of interest due on bonds is notreported in the governmental funds(742,730) 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 Revenues45,118,608 Deferred Inflows of Resources6,563,702 51,682,310 Net Position of Governmental Activities991,619,983$

CITY OF LANCASTER

STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
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Debt Service FundLancaster TransportationLancasterHousing Development Financing GeneralAuthority AuthorityAuthorityREVENUESTaxes68,113,723$ -$ -$ -$ Licenses and Permits9,299,007 - - - Intergovernmental27,375,911 - 21,042,869 172,648 Charges for Services2,252,137 - - - Investment Earnings4,720,528 44,125 - 794,453 Fines and Forfeitures596,782 - - - Contributions- - - - Rental Income229,095 - - - Gain from Sale of Land Held for Resale- 2,448,984 - - Miscellaneous1,146,015 142,813 - - Total Revenues113,733,198 2,635,922 21,042,869 967,101 EXPENDITURES Current:General Government20,871,203 - - 671,126 Public Safety46,285,145 - - - Community Development9,110,658 - - - Parks, Recreation, and Arts23,804,250 - - - Development Services9,326,509 - 140,988 16,458 Housing and Neighborhood Revitalization- 30,091,232 - - Capital Outlay15,950,071 - 4,386,249 649,287 Debt Service:Principal Retirement1,486,773 - - 1,130,000 Interest and Fiscal Charges141,665 - - 2,423,681 Total Expenditures126,976,274 30,091,232 4,527,237 4,890,552 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES(13,243,076) (27,455,310) 16,515,632 (3,923,451) OTHER FINANCING SOURCES (USES)Sale of Capital Assets113,377 - - - Lease Proceeds43,561 - - - Transfers In10,613,146 49,306 54,124 4,572,602 Transfers Out(3,043,625) (207,820) (5,869,807) - Total Other Financing Sources (Uses)7,726,459 (158,514) (5,815,683) 4,572,602 NET CHANGE IN FUND BALANCES(5,516,617) (27,613,824) 10,699,949 649,151 Fund Balances (Deficit) - Beginning of Year, as Previously Presented119,236,452 73,120,880 (11,843,657) 5,068,468 Error Correction- (2,026,084) - - Fund Balances (Deficit) - Beginning of Year, as Restated119,236,452 71,094,796 (11,843,657) 5,068,468 FUND BALANCES (DEFICIT) - END OF YEAR113,719,835$ 43,480,972$ (1,143,708)$ 5,717,619$ Special Revenue Funds

CITY OF LANCASTER

STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(21)

Other Total GovernmentalGovernmental FundsFundsREVENUESTaxes4,492,009$ 72,605,732$ Licenses and Permits1,703,757 11,002,764 Intergovernmental48,088,250 96,679,678 Charges for Services11,241,912 13,494,049 Investment Earnings735,922 6,295,028 Fines and Forfeitures96,542 693,324 Contributions20,310 20,310 Rental Income- 229,095 Gain from Sale of Land Held for Resale- 2,448,984 Miscellaneous1,185,691 2,474,519 Total Revenues67,564,393 205,943,483 EXPENDITURESCurrent:General Government6,362,464 27,904,793 Public Safety929,018 47,214,163 Community Development800,796 9,911,454 Parks, Recreation, and Arts2,878,355 26,682,605 Development Services22,443,423 31,927,378 Housing and Neighborhood Revitalization247,694 30,338,926 Capital Outlay29,264,118 50,249,725 Debt Service:Principal Retirement825,000 3,441,773 Interest and Fiscal Charges357,947 2,923,293 Total Expenditures64,108,815 230,594,110 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES3,455,578 (24,650,627) OTHER FINANCING SOURCES (USES)Sale of Capital Assets- 113,377 Lease Proceeds- 43,561 Transfers In11,593,910 26,883,088 Transfers Out(15,629,479) (24,750,731) Total Other Financing Sources (Uses)(4,035,569) 2,289,295 NET CHANGE IN FUND BALANCES(579,991) (22,361,332) Fund Balances (Deficit) - Beginning of Year, as Previously Presented45,152,099 230,734,242 Error Correction- (2,026,084) Fund Balances (Deficit) - Beginning of Year, as Restated45,152,099 228,708,158 FUND BALANCES (DEFICIT) - END OF YEAR44,572,108$ 206,346,826$

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, 2024

See accompanying Notes to Basic Financial Statements.
(22)

Net Change in Fund Balances - Total Governmental Funds(22,361,332)$ 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 38,954,276 Disposals (4,152,901) Depreciation Expense (40,809,128) (6,007,753) 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 3,441,773 Leases (43,582) Amortization of Bond Premium 393,979 3,792,170 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 (194,132) Change in Claims Payable 404,000 209,868 Accrued interest for long-term liabilities. This is the net change in accrued interestfor the current period. (18,985) 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. 2,258,254 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. (5,355,025) 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. (8,292,615) Change in Net Position of Governmental Activities(35,775,418)$

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

GENERAL FUND
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(23)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR119,236,452$ 119,236,452$ 119,236,452$ -$ RESOURCES (INFLOWS)Taxes62,482,978 62,760,978 68,113,723 5,352,745 Licenses and Permits5,370,045 5,370,045 9,299,007 3,928,962 Intergovernmental28,371,491 28,371,491 27,375,911 (995,580) Charges for Services2,562,107 2,564,807 2,252,137 (312,670) Investment Earnings1,871,665 1,871,665 4,720,528 2,848,863 Fine and Forfeitures1,176,403 1,176,403 596,782 (579,621) Rental Income65,004 65,004 229,095 164,091 Miscellaneous1,391,765 1,664,819 1,146,015 (518,804) Sale of Capital Assets- 70,698 113,377 42,679 Lease Proceeds- - 43,561 43,561 Transfers In9,153,102 10,218,835 10,613,146 394,311 Amounts Available for Appropriations112,490,060 114,180,245 124,503,282 10,323,037 CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government18,465,450 22,124,372 20,871,203 1,253,169 Public Safety47,975,660 50,395,563 46,285,145 4,110,418 Community Development10,712,635 11,692,674 9,110,658 2,582,016 Parks, Recreation, and Arts23,590,750 25,885,096 23,804,250 2,080,846 Development Services7,909,693 11,807,101 9,326,509 2,480,592 Capital Outlay9,264,959 36,308,552 15,950,071 20,358,481 Debt Service:Principal Retirement1,500,000 1,500,000 1,486,773 13,227 Interest and Fiscal Charges- - 141,665 (141,665) Transfers Out1,718,686 2,784,419 3,043,625 (259,206) Total Charges to Appropriations121,137,833 162,497,777 130,019,899 32,477,878 BUDGETARY FUND BALANCE - END OF YEAR110,588,679$ 70,918,920$ 113,719,835$ 42,800,915$ Budgeted Amounts

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

LANCASTER HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(24)
Variance withFinal BudgetPositiveOriginalFinalActual(Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR, AS RESTATED71,094,796$ 71,094,796$ 71,094,796$ -$ RESOURCES (INFLOWS)Investment Earnings- - 44,125 44,125 Gain from Sale of Land Held for Resale35,628 35,628 2,448,984 2,413,356 Miscellaneous50,000 50,000 142,813 92,813 Transfers In- - 49,306 49,306 Amounts Available for Appropriations71,180,424 71,180,424 73,780,024 2,599,600 CHARGES TO APPROPRIATIONS (OUTFLOWS)Housing and Neighborhood Revitalization1,506,796 1,707,500 30,091,232 (28,383,732) Transfers Out511,165 317,116 207,820 109,296 Total Charges to Appropriations2,017,961 2,024,616 30,299,052 (28,274,436) BUDGETARY FUND BALANCE - END OF YEAR69,162,463$ 69,155,808$ 43,480,972$ (25,674,836)$ Budgeted Amounts

CITY OF LANCASTER

BUDGETARY COMPARISON STATEMENT

TRANSPORTATION DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(25)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(11,843,657)$ (11,843,657)$ (11,843,657)$ -$ RESOURCES (INFLOWS)Intergovernmental 12,071,326 12,071,326 21,042,869 8,971,543 Transfers In - - 54,124 54,124 Amounts Available for Appropriations 227,669 227,669 9,253,336 9,025,667 CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services 15,000 15,000 140,988 (125,988) Capital Outlay - 5,839,674 4,386,249 1,453,425 Transfers Out 5,869,807 5,869,807 5,869,807 - Total Charges to Appropriations 5,884,807 11,724,481 10,397,044 1,327,437 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR(5,657,138)$ (11,496,812)$ (1,143,708)$ 10,353,104$ Budgeted Amounts

CITY OF LANCASTER

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(26)

NonmajorLancasterLancasterCalifornia PowerChoiceChoice EnergyAuthorityEnergyAuthorityTotalASSETSCurrent Assets:Cash and Investments - Pooled with City6,296,353$ -$ -$ 6,296,353$ Receivables:Accounts221,546 22,251,817 - 22,473,363 Due from Other Governments- 1,945,599- 1,945,599 Prepaid Items- 21,375,407 - 21,375,407 Restricted Assets:Cash and Investments571 - - 571 Total Current Assets6,518,470 45,572,823 - 52,091,293 Noncurrent Assets:Capital Assets:Depreciable, Net11,743,762 - - 11,743,762 Total Assets18,262,232 45,572,823 - 63,835,055 LIABILITIESCurrent Liabilities:Accounts Payable- 10,748,004 - 10,748,004 Accrued Liabilities- 40,132 - 40,132 Interest Payable62,808 - - 62,808 Unearned Revenues195,757 12,875,000 - 13,070,757 Due to Other Funds- 12,018,696 - 12,018,696 Deposits- 350,000 - 350,000 Current Portion of Long-Term Liabilities830,000 - - 830,000 Total Current Liabilities1,088,565 36,031,832 - 37,120,397 Long-Term Liabilities:Noncurrent Portion of Long-Term Liabilities16,024,527 - - 16,024,527 Total Liabilities17,113,092 36,031,832 - 53,144,924 NET POSITIONNet Investment in Capital Assets(5,110,765) - - (5,110,765) Unrestricted6,259,905 9,540,991 - 15,800,896 Total Net Position1,149,140$ 9,540,991$ -$ 10,690,131$ Enterprise FundsBusiness-Type Activities

CITY OF LANCASTER

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(27)

NonmajorLancasterLancasterCalifornia PowerChoiceChoice EnergyAuthorityEnergyAuthorityTotalOPERATING REVENUESSales and Service Charges1,725,547$ 81,950,853$ -$ 83,676,400$ Total Operating Revenues1,725,547 81,950,853 - 83,676,400 OPERATING EXPENSESPurchased Power- 64,080,519 - 64,080,519 Administration and General375 15,699,053 - 15,699,428 Depreciation Expense939,096 - - 939,096 Total Operating Expenses939,471 79,779,572 - 80,719,043 OPERATING INCOME 786,076 2,171,281 - 2,957,357 NONOPERATING REVENUES (EXPENSES)Interest Revenue- 368,695 - 368,695 Other Nonoperating Income - 143,999 - 143,999 Interest Expense(400,148) - - (400,148) Total Nonoperating Revenue (Expenses)(400,148) 512,694 - 112,546 INCOME BEFORE TRANSFERS385,928 2,683,975 - 3,069,903 TRANSFERSTransfers Out(11,505) (2,120,852) - (2,132,357) Total Transfers(11,505) (2,120,852) - (2,132,357) CHANGE IN NET POSITION374,423 563,123 - 937,546 Net Position - Beginning of Year, as Previously Presented774,717 8,977,868 1,009,951 10,762,536 Change Within Financial Reporting Entity- - (1,009,951) (1,009,951) Net Position - Beginning of Year, as Restated774,717 8,977,868 - 9,752,585 NET POSITION - END OF YEAR1,149,140$ 9,540,991$ -$ 10,690,131$ Enterprise FundsBusiness-Type Activities

CITY OF LANCASTER

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(28)

NonmajorLancasterLancasterCalifornia PowerChoiceChoice EnergyAuthorityEnergyAuthorityTotalCASH FLOWS FROM OPERATING ACTIVITIESCash Received from Customers and Users2,115,045$ 94,207,926$ -$ 96,322,971$ Cash Paid to Suppliers for Goods and Services(375) (92,482,750) - (92,483,125) Net Cash Provided (Used) by Operating Activities2,114,670 1,725,176 - 3,839,846 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESCash Received from Other Funds- 26,981 - 26,981 Cash Paid to Other Funds(11,505) (2,120,852) - (2,132,357) Net Cash Used by Noncapital Financing Activities(11,505) (2,093,871) - (2,105,376) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESPrincipal Paid on Capital Debt(785,000) - - (785,000) Interest Paid on Capital Debt(377,370) - - (377,370) CCEA's Removal from Reporting Entity (See Note 20A)- - (4,526,555) (4,526,555) Net Cash Used by Capital and Related Financing Activities(1,162,370) - (4,526,555) (5,688,925) CASH FLOWS FROM INVESTING ACTIVITIESInterest Received- 368,695 - 368,695 Net Cash Provided by Investing Activities- 368,695 - 368,695 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS940,795 - (4,526,555) (3,585,760) Cash and Cash Equivalents - Beginning of Year5,356,129 - 4,526,555 9,882,684 CASH AND CASH EQUIVALENTS - END OF YEAR6,296,924$ -$ -$ 6,296,924$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIESOperating Income786,076$ 2,171,281$ -$ 2,957,357$ Other Income - 143,999 - 143,999 Depreciation939,096 - - 939,096 Changes in Assets and Liabilities:(Increase) Decrease in Accounts Receivable208,846 976,026 - 1,184,872 (Increase) Decrease in Due from Other Governments- (260,802) - (260,802) (Increase) Decrease in Deposits- 147,000 - 147,000 (Increase) Decrease in Prepaid Items- (17,114,262) - (17,114,262) Increase (Decrease) in Accounts Payable- 4,256,369 - 4,256,369 Increase (Decrease) in Accrued Liabilities- 7,715 - 7,715 Increase (Decrease) in Due to Other Governments- - - - Increase (Decrease) in Unearned Revenues180,652 11,147,850 - 11,328,502 Increase (Decrease) in Deposits- 250,000 - 250,000 Net Cash Provided (Used) by Operating Activities 2,114,670$ 1,725,176$ -$ 3,839,846$ Business-Type ActivitiesEnterprise Funds

CITY OF LANCASTER

STATEMENT OF NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(29)

Private-PurposeTrust Fund Other Successor PostemploymentAgency of the Benefit Custodial Former RDA Trust Fund FundsASSETSPooled Cash and Investments 23,559,797$ 18,993,430$ 435,599$ Receivables:Accounts 6,965 - 47,232 Taxes - - 3,420 Notes and Loans, Net 72,860 - - Accrued Interest 5,161 - - Prepaid Items 1,800 - - Restricted Assets:Cash and Investments with Fiscal Agents 16,201 - - Total Assets 23,662,784 18,993,430 486,251 DEFERRED OUTFLOWS OF RESOURCESDeferred Losses on Debt Refundings 4,050,762 - - LIABILITIESAccounts Payable 3,900 - - Interest Payable 1,974,552 - 47,231 Deposits Payable - - 241,294 Due to Other Governments 2,441,171 - - Advances from City of Lancaster 65,096,230 - - Long-Term Liabilities:Due in One Year 8,191,000 - - Due in More Than One Year 121,020,834 - - Total Liabilities 198,727,687 - 288,525 DEFERRED INFLOWS OF RESOURCESDeferred Gains on Debt Refundings 805,071 - - NET POSITION (DEFICIT)Held for OPEB - 18,993,430 - Held in Trust for Other Purposes (171,819,212) - - Restricted for Bondholders - - 197,726 Total Net Position (Deficit) (171,819,212)$ 18,993,430$ 197,726$

CITY OF LANCASTER

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024

See accompanying Notes to Basic Financial Statements.
(30)

Private-PurposeTrust Fund OtherSuccessor PostemploymentAgency of the Benefit CustodialFormer RDA Trust Fund FundsADDITIONSTaxes 13,001,546$ -$ 42,561$ Contributions - Rollover - 17,243,115 - Investment Income 623,281 1,759,428 - Miscellaneous 2,248,110 - - Total Additions 15,872,937 19,002,543 42,561 DEDUCTIONSAdministrative Expenses 5,886 9,113 25,988 Payment of Special Tax Debt 5,411,805 - - Total Deductions 5,417,691 9,113 25,988 CHANGE IN NET POSITION10,455,246 18,993,430 16,573 Net Position (Deficit) - Beginning of Year (182,274,458) - 181,153 NET POSITION (DEFICIT) - END OF YEAR(171,819,212)$ 18,993,430$ 197,726$

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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, and the Lancaster 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. Effectively January 2024, the Energy Authority became a separate reporting entity and is no longer a component unit of the City. Previously, members of the City of Lancaster’s City Council served as the Board members for the Energy Authority. In January 2024, each Member of the Energy Authority appointed a representative to be a Board Member.

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.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

(32)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
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.

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.

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, 2024

(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, 2024

(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.

Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, when they become both measurable and available to finance expenditures of the current period. “Measurable” means that the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Accrued revenues include property taxes received within 60 days after year-end, taxpayer-assessed taxes such as sales taxes, and earnings on investments. Grant funds earned but not received are recorded as a receivable, and grant funds received before the revenue recognition criteria have been met are reported as unearned revenues.

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, 2024

(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, 2024

(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.

Other Postemployment Benefit Trust Fund – This fund is to account for resources that are held in an irrevocable trust for the benefit of participants in the City’s other postemployment benefit plan.

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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. 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).

E. 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.”

F. 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.

G. 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. 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.

I. 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.

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.

J. 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. 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.

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. Additionally, donated capital assets that are not intended for use but are held for sale should be reported as assets on the governmental fund balance sheet and as a deferred inflow of resources equal to their fair value.

L. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s practice to consider restricted – net position to have been depleted before unrestricted – net position is applied.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. 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.

N. Compensated Absences
It is the government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation pay is payable to employees at the time a vacation is taken or upon termination of 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.

O. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period as other financing sources and uses, respectively.

The face amount of debt issued is reported as other financing sources.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance Classification
In the fund financial statements, fund balances are classified as follows:

Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash (for example, inventories and prepaid amounts). In the general fund only, it also includes the long-term portion of notes and loan’s receivable with no constraints on how the eventual proceeds can be spent.

Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments, or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of 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.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balance Classification (Continued)
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.

Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public 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.

R. Postemployment Benefits Other Than Pensions
For purposes of measuring the net OPEB liability (asset) and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plan and additions to/deductions from the OPEB plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, the City’s OPEB plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

S. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred inflows of resources, liabilities, and deferred outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

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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.

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 $2,357,535. 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, Proposition 1B Special Revenue Fund, AVAQMD 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, 2024:

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NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) Excess of Expenditures Over Appropriations (Continued)
FinalVariance WithBudgetActualFinal BudgetMajor Funds:General Fund:Transfers Out2,784,419$ 3,043,625$ (259,206)$ Lancaster Housing Authority:Housing and Neighborhood Revitalization1,707,500 30,091,232 (28,383,732) Transportation Development Authority:Development Services15,000 140,988 (125,988) Other Governmental Special Revenue Funds:Gas Tax:General Government- 69,912 (69,912) Transfers Out2,746,432 2,772,559 (26,127) Housing and Community Development:Housing and Neighborhood Revitalization132,604 247,694 (115,090) Transfers Out- 571,453 (571,453) Proposition A:Development Services94,126 120,146 (26,020) Bikeway Improvement:Development Services- 31,505 (31,505) Transfers Out- 12,464 (12,464) Proposition C:Development Services- 257,775 (257,775) Federal Grant:Development Services- 139,123 (139,123) Transfers Out- 1,928,167 (1,928,167) State Grant:General Government- 180,179 (180,179) Developer Fees - Drainage:Development Services- 33,411 (33,411) Recycled Water:General Government- 580 (580) Capital Outlay- 579 (579) Traffic Impact:Transfers Out- 1,595 (1,595) AQMD:Community Development- 18,750 (18,750) Transfers Out5,279 24,565 (19,286) Landscape Drainage Maintenance District:Transfers Out598,921 624,368 (25,447) LA County Reimbursement:Transfers Out- 3,180 (3,180) Measure H:Transfers Out- 26,722 (26,722) MTA Grant:Development Services- 124,871 (124,871) Transfers Out- 49,306 (49,306) Urban Structure Program:Transfers Out42,507 51,149 (8,642) Sewer Maintenance:General Government88,491 92,366 (3,875) Transfers Out1,540,594 1,540,957 (363) Measure R:Development Services- 267,050 (267,050)

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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, 2024:

DeficitAmountTransportation Development Authority Special Revenue Fund(1,143,708)$ (3)Other Governmental Special Revenue Funds:Bikeway Improvement Special Revenue Fund(18,125) (1)State Grants Special Revenue Fund(2,797,512) (1)Recycled Water Special Revenue Fund(124,143) (1)AQMD Special Revenue Fund(18,750) (2)LA County Reimbursement Special Revenue Fund(364,009) (1)Measure H Special Revenue Fund(265,295) (1)MTA Grant Special Revenue Fund(1,289,964) (1)Measure R Special Revenue Fund(6,526,653) (1)AVAQMD Special Revenue Fund(311,533) (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, 2024, are reported in the accompanying financial statements as follows:

Statement of Net Position:Cash and Investments 128,685,621$ Restricted:Cash and Investments 15,777,565 Statement of Fiduciary Assets and Liabilities:Pooled Cash and Investments 42,988,826 Restricted:Cash and Investments with Fiscal Agents 16,201 Total Cash and Investments 187,468,213$ Cash and Investments Consisted of the Following:Cash on Hand 2,650$ Deposits with Financial Institutions 43,655,871 Investments 143,809,692 Total Cash and Investments 187,468,213$ 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, 2024, 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, 2024, the City invested in various MTNs and municipal bonds which were rated AA- or better by Standard & Poor’s (S&P). At June 30, 2024, 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, 2024, 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, 2024, 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, 2024, 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, 2024, 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 -$ 9,513,261$ 8,692,175$ 1,018,670$ 19,224,106$ United States Government Sponsored Agency Securities - 6,975,873 2,632,769 - 9,608,642 Medium-Term Corporate Notes - 5,700,692 699,153 - 6,399,845 Certificates of Deposit 160,027 - - - 160,027 Municipal Bonds - 1,493,913 - - 1,493,913 California Local Agency Investment Fund (LAIF) 11,728,559 - - - 11,728,559 California CLASS 60,407,403 - - - 60,407,403 Held by OPEB Trust:Money Market Mutual Funds 18,993,431 - - - 18,993,431 Held by Fiscal Agent:Money Market Mutual Funds 15,793,766 - - - 15,793,766 Total 107,083,186$ 23,683,739$ 12,024,097$ 1,018,670$ 143,809,692$ 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, 2024:

Quoted Observable UnobservablePrices Inputs InputsLevel 1 Level 2 Level 3 TotalUnited States Treasury Securities 19,224,106$ -$ -$ 19,224,106$ United States Government Sponsored Agency Securities - 9,608,642 - 9,608,642 Medium-Term Corporate Notes - 6,399,845 - 6,399,845 Certificates of Deposit - 160,027 - 160,027 Municipal Bonds - 1,493,913 - 1,493,913 Total Subject to Hierarchy 19,224,106$ 17,662,427$ -$ 36,886,533 LAIF (1) 11,728,559 California CLASS (1) 60,407,403 Held by OPEB Trust:Money Market Mutual Funds (1) 18,993,431 Held by Fiscal Agent:Money Market Mutual Funds (1) 15,793,766 Total Investment Portfolio 143,809,692$ (1) Investment is not subject to fair value hierarchy measurements.

NOTE 4 NOTES AND LOANS RECEIVABLE
Notes and loans receivable at June 30, 2024, were as follows:

Loans and Loan Long-TermNotes Forgiveness/ Lump-SumReceivable Allowance RepaymentRepayments Terms Terms TotalGeneral Fund 1,401,717$ (280,384)$ (40,882)$ 1,080,451$ Lancaster Housing Authority:Special Revenue Fund 3,776,220 - - 3,776,220 Other Governmental Funds:HOME Program SpecialRevenue Fund 15,377,995 (14,787,934) - 590,061 Total 20,555,932$ (15,068,318)$ (40,882)$ 5,446,732$ Fiduciary Private-Purpose: Trust Fund 87,079$ (14,219)$ -$ 72,860$ 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 2043 and provide for renewal options ranging from three months to six years. During the year ended June 30, 2024, 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, 2024, was as follows:

Governmental Activities
Balance at ConstructionJune 30, 2023 in Progress Balance atas Restated (1) Transfers Additions Deletions June 30, 2024Governmental Activities:Capital Assets, Not Depreciated:Land 42,079,636$ -$ -$ (29,854)$ 42,049,782$ Construction in Progress 60,485,334 (22,783,425) 30,176,562 (3,406,520) 64,471,951 Total Capital Assets, Not Depreciated 102,564,970 (22,783,425) 30,176,562 (3,436,374) 106,521,733 Capital Assets, Being Depreciated:Structures and Improvements 88,043,508 2,034,301 1,568,601 (146,841) 91,499,569 Furniture and Equipment 20,426,672 - 4,140,412 (2,704,344) 21,862,740 Right-to-Use Assets:Leases 927,188 - 43,562 (17,267) 953,483 Subscription 3,976,348 - - - 3,976,348 Infrastructure 1,793,618,866 20,749,124 3,025,138 - 1,817,393,128 Total Capital Assets, Being Depreciated 1,906,992,582 22,783,425 8,777,713 (2,868,452) 1,935,685,268 Less Accumulated Depreciation for:Structures and Improvements (41,077,901) - (3,214,265) - (44,292,166) Furniture and Equipment (13,430,946) - (373,106) 2,134,658 (11,669,394) Right-to-Use Assets:Leases (219,157) - (237,105) 17,267 (438,995) Subscription (897,413) - (897,413) - (1,794,826) Infrastructure (1,058,687,696) - (36,087,239) - (1,094,774,935) Total Accumulated Depreciation (1,114,313,113) - (40,809,128) 2,151,925 (1,152,970,316) Total Capital Assets, Being Depreciated, Net 792,679,469 22,783,425 (32,031,415) (716,527) 782,714,952 Governmental Activities Capital Assets, Net 895,244,439$ -$ (1,854,853)$ (4,152,901)$ 889,236,685$ (1) The beginning balance has been restated to reflect land acquisition and deletions from a prior year. 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, 2024, as follows:

General Government1,621,215$ Public Safety353,412 Development Services35,407,709 Community Development542,696 Parks, Recreation, and Arts2,884,096 Total 40,809,128$ Business-Type Activities
Capital asset activity for the year ended June 30, 2024, was as follows:

Balance at Balance atJune 30, 2023 Additions Deletions June 30, 2024Capital Assets, Being Depreciated:Intangible Assets 23,486,774$ -$ -$ 23,486,774$ Less Accumulated Depreciation for:Intangible Assets (10,803,916) (939,096) - (11,743,012) Total Business-Type Activities Capital Assets, Net 12,682,858$ (939,096)$ -$ 11,743,762$ The depreciation expense of $939,096 was charged to the Lancaster Power Authority program for the year ended June 30, 2024.

NOTE 7 INTERFUND RECEIVABLE, PAYABLE, AND TRANSFERS
Due To/From Other Funds
Interfund receivable and payable balances at June 30, 2024, are as follows:

ReceivablePayableAmountGeneral FundTransportation Development Authority933,636$ Lancaster Financing Authority44,227,376 Other Governmental Funds14,168,528 Lancaster Choice Energy Enterprise Fund12,018,696 Total71,348,236$ The due to General Fund was a result of temporary deficit cash balances in those funds.

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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 Fund90,464$ Other Governmental Funds8,415,772 Lancaster Power Authority Enterprise Fund11,505 Lancaster Choice Energy Enterprise Fund2,095,405 Lancaster Housing Authority Special Revenue Fund Other Governmental Funds 49,306 Transportation Development Authority Special Revenue FundOther Governmental Funds54,124 Lancaster Financing Authority Debt Service FundGeneral Fund735,019 Other Governmental Funds3,812,136 Lancaster Choice Energy Enterprise Fund25,447 Other Governmental FundsGeneral Fund2,308,606 Lancaster Housing Authority Special Revenue Fund117,356 Transportation Special Revenue Fund5,869,807 Other Governmental Funds3,298,141 Total 26,883,088$ Transfers made to the General Fund were for administrative and retiree health benefit costs incurred.

Transfers made to the Lancaster Housing Authority Special Revenue Fund were for project expenses.

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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JUNE 30, 2024

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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, 2024, are as follows:

Balance Balance Due Due in More June 30, 2023 Additions Deletions June 30, 2024 One Year than One YearDirect Borrowings:Section 108 Notes:Series 2015-A1102,000$ -$ 102,000$ -$ -$ -$ Series 2015-A2209,000 - 103,000 106,000 106,000 - Equipment Agreements Payable 407,431 - 129,994 277,437 135,733 141,704 Loans 6,200,170 - 128,736 6,071,434 132,649 5,938,785 Settlement Agreement 800,000 - 200,000 600,000 200,000 400,000 Other Debt:Streetlight Acquisition Issue of 2016 10,870,000 - 620,000 10,250,000 640,000 9,610,000 Public Improvements Project Issue of 2018 13,255,000 - 305,000 12,950,000 320,000 12,630,000 Measure M & R Street: Improvement Project Issue of 2018 44,695,000 - 825,000 43,870,000 865,000 43,005,000 Unamortized Bond Premium 6,606,877 - 393,979 6,212,898 - 6,212,898 Other Long-Term Liabilities:Lease Payable 708,710 43,561 242,230 510,041 264,918 245,123 Subscription Payable 2,133,049 - 785,792 1,347,257 656,826 690,431 Accrued Employee Benefits 3,822,670 2,974,591 2,780,459 4,016,802 2,780,459 1,236,343 Claims and Judgements 2,550,000 1,227,364 1,631,364 2,146,000 616,000 1,530,000 Total Governmental Activities 92,359,907$ 4,245,516$ 8,247,554$ 88,357,869$ 6,717,585$ 81,640,284$ 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 matured from 2004-2023 and bear varying rates of interest. The note was paid off during the year.

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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, 2024, was $106,000.

The annual requirements to amortize the Section 108 Notes outstanding indebtedness as of June 30, 2024, are as follows:

Year Ending June 30,Principal Interest Total2025 106,000$ 1,510$ 107,510$ 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, 2024, is $277,437.

The future payments debt service payments are as follows:

Year Ending June 30,Principal Interest Total2025 135,733$ 10,609$ 146,342$ 2026 141,704 4,657 146,361 Total 277,437$ 15,266$ 292,703$ 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, 2024, is $201,434.

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Loans (Continued)
The annual requirements to amortize the outstanding indebtedness as of June 30, 2024, are as follows:

Year Ending June 30,Principal Interest Total2025 132,649$ 5,030$ 137,679$ 2026 68,785 1,020 69,805 Total 201,434$ 6,050$ 207,484$ 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, 2024, 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, 2024, is $10,250,000.

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, 2024, are as follows:

Year Ending June 30,Principal Interest Total2025 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 725,000 240,856 965,856 2030 - 2034 4,070,000 771,513 4,841,513 2035 - 2037 2,775,000 131,953 2,906,953 Total 10,250,000$ 2,354,046$ 12,604,046$

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds
Public Improvements Project, Issue of 2018
On December 1, 2018, the Lancaster Financing Authority issued $14,955,000 of Lease Revenue Bonds, Series 2018, Public Improvements Project Bonds. These bonds were issued to finance improvements to City 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, 2024, is $12,950,000.

The bond indenture requires the City to maintain a bond reserve in equal to the maximum annual debt service. The City purchased as reserve body insurance policy to satisfy this requirement. The annual requirements to amortize the outstanding indebtedness as of June 30, 2024, are as follows:

Year Ending June 30,Principal Interest Total2025 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 385,000 468,281 853,281 2030 - 2034 2,210,000 2,041,963 4,251,963 2035 - 2039 2,675,000 1,577,719 4,252,719 2040 - 2044 3,235,000 1,015,200 4,250,200 2045 - 2048 3,085,000 314,800 3,399,800 Total 12,950,000$ 7,458,437$ 20,408,437$ 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, 2024, is $43,870,000.

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:

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
Lease Revenue Bonds (Continued)
Street Improvements Project, Issue of 2019 (Continued)
 all Measure M Receipts, which consist of certain amounts received by the City from 0.5% retail transactions and use tax that is collected by the County, to the extent that the applicable Project constitutes a Measure M Project; and all Measure R Receipts, which consist of certain amounts received by the City from

0.5% retail transactions and use tax that is collected by the County through June 30, 2039, to the extent that the applicable Project constitutes a Measure R Project

The annual requirements to amortize the outstanding indebtedness as of June 30, 2024, are as follows:

Year Ending June 30,Principal Interest Total2025 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 1,050,000 1,651,300 2,701,300 2030 - 2034 6,085,000 7,426,500 13,511,500 2035 - 2039 7,480,000 6,028,200 13,508,200 2040 - 2044 11,255,000 4,282,400 15,537,400 2045 - 2049 14,280,000 1,758,400 16,038,400 Total 43,870,000$ 28,228,250$ 72,098,250$ 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, 2024, is $600,000.

Business-Type Activities
Changes in long-term liabilities for the business-type activities for the year ended June 30, 2024, are as follows:

Balance Balance Due Due in More ThanJuly 1, 2023 Additions Deletions June 30, 2024 One Year One YearOther Debt:Taxable Revenue RefundingBonds, Series 2021 17,940,000$ -$ 785,000$ 17,155,000$ 830,000$ 16,325,000$ Unamortized Bond Discount (323,927) - 23,454 (300,473) - (300,473) Total Business-Type Activities 17,616,073$ -$ 808,454$ 16,854,527$ 830,000$ 16,024,527$

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
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.

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, 2024, are as follows:

Year Ending June 30,Principal Interest Total2025 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 1,135,000 315,825 1,450,825 2030 - 2034 6,885,000 1,169,897 8,054,897 2035 - 2037 5,285,000 231,867 5,516,867 Total 17,155,000$ 3,141,987$ 20,296,987$

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NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
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 Total2025 264,918$ 18,614$ 283,532$ 2026 125,199 9,147 134,346 2027 109,909 3,144 113,053 2028 10,015 55 10,070 Total Minimum Lease Payments 510,041$ 30,960$ 541,001$ Governmental Activities

Right-to-use assets acquired through outstanding leases are shown below, by underlying asset class.

Governmental ActivitiesBuilding43,561$ Equipment340,021 Vehicles569,901 Less: Accumulated Amortization(438,995) Total514,488$ 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, 2024, SBITA assets and the related accumulated amortization totaled $3,976,348 and $1,794,826, respectively.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30,Principal Interest Total2025 264,918$ 18,614$ 283,532$ 2026 125,199 9,147 134,346 2027 109,909 3,144 113,053 2028 10,015 55 10,070 Total Minimum Lease Payments 510,041$ 30,960$ 541,001$ Governmental Activities

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NOTE 9 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension-related items for the year ended June 30, 2024:

Deferred Deferred PensionPension Outflows of Inflows of (Income)Liability Resources Resources ExpenseCalPERS Miscellaneous 77,965,648$ 23,449,144$ (1,016,958)$ 14,273,087$ PARS 4,164,083 1,063,162 (604,564) 267,240 Total 82,129,731$ 24,512,306$ (1,621,522)$ 14,540,327$ 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.

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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)
Benefits Provided (Continued)
The Miscellaneous Plan’s provisions and benefits in effect at year ended June 30, 2024, 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 12.80% 12.80% 12.80%Payment of Unfunded Liability 5,230,947$ -$ -$ Miscellaneous Plan

Employees Covered
At the June 30, 2023, measurement date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

MiscellaneousPlanInactive Employees or Beneficiaries Currently Receiving Benefits 352 Inactive Employees Entitled to But Not Yet Receiving Benefits 516 Active Employees 281 Total 1,149

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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 (Continued)
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, 2024, of $9,181,497.

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, 2023, using an annual actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions
The total pension liabilities in the June 30, 2022, actuarial valuations were determined using the following actuarial assumptions:

MiscellaneousPlanValuation Date June 30, 2022Measurement Date June 30, 2023Actuarial Cost Method Entry-Age Normal Cost MethodActuarial Assumptions:Discount Rate 6.90%Inflation 2.3%Projected Salary Increase (1)Mortality Rate Table (2)Postretirement Benefit Income (3)

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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)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (3) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% 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)
Long-Term Expected Rate of Return (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, 2022 (Measurement Date) 218,978,683$ 149,873,354$ 69,105,329$ Changes in the Year:Service Cost 4,617,487 - 4,617,487 Interest on the Total Pension Liability 15,486,594 - 15,486,594 Changes of Benefit Terms 218,866 - 218,866 Differences Between Expected and Actual Experience 8,337,543 - 8,337,543 Contribution - Employer - 8,635,828 (8,635,828) Contribution - Employee - 1,893,145 (1,893,145) Net Investment Income - 9,381,408 (9,381,408) Administrative Expenses - - - Benefit Payments, Including Refunds of Employee Contributions (10,800,859) (10,800,859) - Other Miscellaneous Income (Expense) - (110,210) 110,210 Net Changes 17,859,631 8,999,312 8,860,319 Balance at June 30, 2023 (Measurement Date) 236,838,314$ 158,872,666$ 77,965,648$ 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 111,050,272$ 77,965,648$ 50,798,871$ 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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NOTES TO BASIC FINANCIAL STATEMENTS
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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, 2024, the City recognized pension expense of $14,273,087. At June 30, 2024, 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 9,181,497$ -$ Differences Between Expected and Actual Experience 5,359,849 (1,016,958) Change in Assumptions 1,840,164 - Net Differences Between Projected and Actual Earnings on Plan Investments 7,067,634 - Total 23,449,144$ (1,016,958)$ Deferred outflows of resources of $9,181,497 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, 2025. 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,Amount2025 5,054,459$ 2026 3,109,437 2027 4,899,242 2028 187,551 2029 - Thereafter - Total 13,250,689$ Payable to the Pension Plans
At June 30, 2024, the City had no outstanding contributions to the CalPERS pension plan required for the year ended June 30, 2024.

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NOTES TO BASIC FINANCIAL STATEMENTS
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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, 2023, 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, 2023, using an annual actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, 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, 2022, actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2022Measurement Date June 30, 2023Actuarial Cost Method Entry-Age Normal Level % of PayActuarial Assumptions:Discount Rate 4.32%Inflation 2.50%Investment Rate of Return 5.5%Mortality Assumption for Service CalPERS 2021 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, 2022, the discount rate was updated from 4.27% to 4.32%.

Discount Rate
The discount rate of 4.32% 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 5.50% at June 30, 2023. 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 6.96% for equities, 4.88% for fixed income, and 0.00% 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 % 6.96 %Fixed Income 45.00 4.88Cash 5.00 -Total 100.00 %

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NOTES TO BASIC FINANCIAL STATEMENTS
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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, 2023, are as follows:

Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)Balance at June 30, 2022 (Measurement Date) 11,677,215$ 7,571,389$ 4,105,826$ Changes in the Year:Service Cost - - - Interest on the Total Pension Liability 482,753 - 482,753 Changes in Benefit Terms - - - Changes in Assumptions (23,210) - (23,210) Differences Between Expected - - and Actual Experience 83,118 - 83,118 Net Investment Income - 500,693 (500,693) Administrative Expenses - - - Benefit Payments (743,071) (743,071) - Administrative Expenses - (16,289) 16,289 Net Changes (200,410) (258,667) 58,257 Balance at June 30, 2023 (Measurement Date) 11,476,805$ 7,312,722$ 4,164,083$ 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% Increase3.32% 4.32% 5.32%Net Pension Liability (Asset) 5,436,856$ 4,164,083$ 3,101,292$ 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.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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, 2024, the City recognized pension expense of $267,240. At June 30, 2024, 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 1,063,162$ (604,564)$ Total 1,063,162$ (604,564)$ Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30,Amount2025 106,527$ 2026 38,749 2027 298,969 2028 (38,723) 2029 - Thereafter - Total 405,522$ Payable to the Pension Plans
At June 30, 2024, the City had no outstanding contributions to the PARS pension plan required for the year ended June 30, 2024.

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)
Plan Description (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, 2023, 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 141 Active Employees 302 Total 443 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, 2024, the City’s cash contributions were $1,931,187 in payments to the trust and the estimated implicit subsidy was $376,253, resulting in total contributions of $2,307,440.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by using an actuarial valuation as of June 30, 2023. 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, 2023, 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, 2023Measurement Date June 30, 2023Actuarial Cost Method Entry-Age Normal Cost MethodActuarial Assumptions:Discount Rate 5.50%Inflation 2.50%Projected Salary Increase Aggregate - 2.80%Expected Long-Term Investment Rate of Return 5.50%Pre-65 8.00% for 2024,Health Care Cost Trend Rates Decreasing to 4.50% in 2032,Post-65 6.50% for 2024,Decreasing to 4.50% in 2032,Mortality, Retirement, Disability, and Termination Derived from CalPERS 2021Experience 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:

Long-TermTarget Expected GrossAsset ClassAllocation Rate of ReturnCERBTGlobal Equity 34.00 % N/AFixed Income 41.00 N/ATIPS 5.00 N/AREITs 17.00 N/ACommodities 3.00 N/ATotal 100.00 % 5.50% Discount Rate
The discount rate used to measure the total OPEB liability is 5.50%. 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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JUNE 30, 2024

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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, 2022 (Measurement Date) 22,983,928$ 14,200,195$ 8,783,733$ Changes in the Year:Service Cost 427,974 - 427,974 Interest on the Total OPEB Liability 1,311,591 - 1,311,591 Differences Between Actual and Expected Experience (2,174,130) - (2,174,130) Changes in Assumptions 560,296 - 560,296 Changes in Benefit Terms - - - Contribution - Employer - 3,038,434 (3,038,434) Net Investment Income - 569,865 (569,865) Administrative Expenses - (4,573) 4,573 Benefit Payments (1,220,306) (1,220,306) - Net Changes (1,094,575) 2,383,420 (3,477,995) Balance at June 30, 2023 (Measurement Date) 21,889,353$ 16,583,615$ 5,305,738$ Increase (Decrease)

Change of Assumptions
The discount rate changed from 5.75% to 5.50%.

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% Increase4.50% 5.50% 6.50%Net OPEB Liability 7,814,921$ 5,305,738$ 3,187,684$

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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 (7.00% decreasing to 3.50%) or one percentage point higher (9.00% decreasing to 5.50%) than current health-care cost trend rates:

Current HealthCare Cost1% DecreaseTrend Rates1% IncreaseNet OPEB Liability3,004,807$ 5,305,738$ 8,060,730$ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $49,186. At June 30, 2024, 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 2,307,440$ -$ Differences Between Actual and Expected Experience 535,698 5,234,494 Change in Assumptions 490,259 1,378,627 Differences Between Projected and Actual Earnings 1,279,170 - Total 4,612,567$ 6,613,121$ An amount of $2,307,440, 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, 2025. 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,Amount2025 (848,601)$ 2026 (873,507) 2027 (543,208) 2028 (1,106,339) 2029 (532,879) Thereafter (403,460) Total (4,307,994)$

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS PLAN (CONTINUED)
Payable to the OPEB Plan
At June 30, 2024, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2024.

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, 2024 (latest information available), Antelope Valley Transit Authority’s financial position was as follows:

Assets 166,271,804$ Deferred Outflow of Resources 1,857,902$ Liabilities 6,006,314$ Deferred Inflows of Resources 748,643$ Net Position 161,374,749$ Revenues 73,499,377$ Expenses 49,932,926 Changes in Net Position 23,566,451$

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 11 ANTELOPE VALLEY TRANSIT AUTHORITY JOINT VENTURE (CONTINUED) Description of Debt (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, 2024, $2,146,000 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, 2024, 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 2023 and 2024 were as follows:

Beginning of Claims and End ofFiscal Year Changes in Claim Fiscal YearFiscal Year EndedLiability Estimates Payments Liability2022 - 2023 3,054,000$ 781,000$ 1,285,000$ 2,550,000$ 2023 - 2024 2,550,000 1,227,364 1,631,364 2,146,000 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.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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, 2024:

ExpendituresContractto Date as ofRemainingProject NameAmountJune 30, 2024Commitments2 WAY STOP ROUNDABOUT CONVERSION 2,344,913$ 13,659$ 2,331,253$ 2022 SPRING PMP 1,488,226.74 (13,812.88) 1,502,040 2024 PMP - PAVEMENT PRESERVATION 1,590,436.00 - 1,590,436 2024 PMP - PREVENTATIE MAINT 737,138.03 119,776.95 617,361 2024 PMP - ROAD REHAB PROJ 5,163,867.16 234,403.95 4,929,463 28 SIGNALIZED SAFETY UPGRADES 2,897,555.42 1,899.22 2,895,656 35TH ST W IMPROVEMENTS PHASE 1 1,575,550.91 548,755.74 1,026,795 AMARGOSA RECREATION TRAIL CALTRANS 4,858,742.66 - 4,858,743 ANNUAL CONRETE REPAIRS/MAINT 771,891.93 31,578.76 740,313 ATP CYCLE 6_5TH E CORR SCHOOL CON 7,738,809.16 - 7,738,809 AV EVENT CENTER AND EVAC CENTR 5,361,647.25 2,825,838.00 2,535,809 AVE J AT-GRADE CROSSING 2,220,928.73 141,913.92 2,079,015 AVE J/SR 138 (SR 14) INTRCHG - MSR 34,055,652.38 8,018,738.41 26,036,914 AVE K AT-GRADE CROSSING 1,349,832.98 144,751.13 1,205,082 AVE K/SR 138 (SR 14) INTRCHG - MSR 7,633,604.27 (3,464,003.01) 11,097,607 AVE L AND 5TH E DRAINAGE IMPRV 5,150,000.00 20,535.09 5,129,465 AVE M AT-GRADE CROSSING 1,119,213.47 140,755.36 978,458 AVE M/SR 138 (SR 14) INTRCHG - MSR 8,353,097.03 (47,039.40) 8,400,136 AVHUSD PROP ACQUISITION 6,754,904.26 5,989,713.46 765,191 AVTA BUS STOP IMPROVEMENTS 3,043,592.51 13,528.08 3,030,064 BLVD PARKING LOT IMPROVEMENTS 792,882.87 8,587.90 784,295 CDBG-FY24 (160,889.50) (1,138,196.72) 977,307 CITY BEAUTIFICATION 2,264,878.81 - 2,264,879 CITY HALL FACE LIFT 1,452,222.13 535,288.17 916,934 CITY HALL RESILIENCY/BATTERY 2,404,593.01 - 2,404,593 DRAINAGE IMPACT FEES REFUNDED 721,534.65 - 721,535 FENCE/LANDSCAPE RPLCMNT-SIERRA HWY 2,280,087.97 5,247.86 2,274,840 HIGH VIS XWALK STANDARDIZATION 786,994.87 12,646.86 774,348 INDOOR REC COMPLEX & WRKFRC TRNG CT 900,773.50 - 900,774 LANCASTER HEALTH DISTRICT 26,816,877.89 2,221,431.46 24,595,446 LPAC IMPROVEMENTS 854,047.42 256,001.10 598,046 MARIPOSA PARK IMPROVEMENTS 4,024,783.66 2,190,000.40 1,834,783 MPD IMPROV BASIN AT AV M/ 32ND W - 2,170,179.17 112,556.59 2,057,623 MUNICIPAL STADIUM RENOVATION 2,118,706.00 1,039,819.34 1,078,887 OMP HARDCOURT IMPROVEMENTS 1,352,776.86 625,466.47 727,310 PARK AND FACILITY BUILD RENNO 971,433.90 252,776.00 718,658 PARK N RIDE PARKING REFURBISH 3,578,615.59 113,670.61 3,464,945 PEDESTRIAN GAP CLOSURE IMPS 2,473,693.81 (4,702,485.29) 7,176,179 PLHA2020 1,080,020.00 - 1,080,020 PMP - RB NBH 6,724,367.90 5,326,502.50 1,397,865 RDP PLAYGROUND AND HARDCOURT IMPROV 1,082,517.00 273,092.30 809,425 SAFER STREETS ACTION PLAN 1,179,290.81 95,743.28 1,083,548 SPP EL DORADO PARK IMPROVEMENT 7,779,830.84 562,845.35 7,216,985 TRACT IMPROVEMENTS WESTERN INSUR 3,434,325.00 - 3,434,325 TROPICAL STORM HILARY REPAIRS AND 2,000,000.00 - 2,000,000 WELLNESS FACILITY 5,000,000.00 - 5,000,000 YARD FACILITIES IMPROVEMENTS 777,636.72 - 777,637

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 15 LANCASTER CHOICE ENERGY
Lancaster Energy (LE) has registered as a Community Choice Aggregator (CCA) for the purpose of delivering electric services to certain customers located within the City of Lancaster. LE entered into an administrative services agreement with California Choice Energy Authority (CalChoice), for administration, energy procurement, contract negotiation, contract administration, resource planning services, and other services provided to the LE 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 CalChoice is a party on behalf of LE. Due to large sales of Resource Adequacy, payments to LE from CalChoice for the fiscal year ended June 30, 2024, totaled $12,933,202.

CalChoice master “Take or Pay” agreements with different energy providers that LE uses to purchase energy to provide for future electric capacity for customers. LE enters into separate contracts with the providers and these contracts constitute an obligation of LE to purchase a set volume of electricity at a set price throughout the terms of the Contracts.

During the fiscal year ended June 30, 2024, the total payments made by LE under the take or pay contracts was $67,384,326. At June 30, 2024, the remaining take or pay contracts for LE is $307,475,587 through December 2041.

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, 2024, was as follows:

Balance Balance Due Due in MoreJuly 1, 2023 Additions Deletions June 30, 2024 One Year than One YearOther Borrowings:2004 County Fire 780,000$ -$ 780,000$ -$ -$ -$ 2004 County - Sheriff 1,680,000 - 1,680,000 - - - 2015 Housing A&B 17,270,000 - 1,120,000 16,150,000 775,000 15,375,000 2017 Housing 50,530,000 - 2,785,000 47,745,000 3,325,000 44,420,000 2016 A-1 & A-2 Non-Housing 44,470,000 - 2,965,000 41,505,000 3,050,000 38,455,000 2016 B-1 & B-2 Non-Housing 12,960,000 - 765,000 12,195,000 805,000 11,390,000 2021 Lease Revenue Bonds 3,416,000 - 232,000 3,184,000 236,000 2,948,000 Total Successor Agency 131,106,000 - 10,327,000 120,779,000 8,191,000 112,588,000 Unamortized Original Issue (Discount) or Premium 9,048,600 - 615,766 8,432,834 - 8,432,834 Net Long-Term Debt 140,154,600$ -$ 10,942,766$ 129,211,834$ 8,191,000$ 121,020,834$

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NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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 note was paid off during the year.

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 note was paid off during the year.

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, 2024, is $16,150,000.

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, 2024, is $47,745,000.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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, 2024, is $41,505,000.

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, 2024, is $12,195,000.

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, 2024, is $3,184,000.

The annual requirements to amortize the outstanding bond indebtedness for the Lancaster Redevelopment Agency Bonds and Notes, as of June 30, 2024, including interest, are as follows:

Year Ending June 30,Principal Interest Total2025 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 8,960,000 3,592,135 12,552,135 2029 9,337,000 3,257,825 12,594,825 2030 - 2034 51,263,000 9,989,213 61,252,213 2035 - 2039 24,890,000 1,781,270 26,671,270 2040 - 2041 1,310,000 26,200 1,336,200 Total 120,779,000$ 31,683,172$ 152,462,172$

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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 $152,462,172 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 $13,001,546 and the debt service obligation on the bonds was $15,151,506 broken down as follows:

Received inFY 23/24Scope of Fund Recognized by Successor Agency for enforceable Obligations:Redevelopment Property Tax Trust Funds (RPTTF) 13,001,546$ Debt Service ObligationsDue in FY 2023/2024 Principal Due Interest Due TotalNon-Housing, Housing, and School Bus (RPTTF) 7,635,000$ 4,995,006$ 12,630,006$ County Fire and Sheriff Bonds (Paid From Fire and Sheriff Pass-Through Funds) 2,460,000 61,500 2,521,500 Total Successor Agency Debt Service Obligations FY 23/24 10,095,000$ 5,056,506$ 15,151,506$

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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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, 2024, is $7,912,442. The Successor Agency made repayments totaling $0 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, 2024, totals $25,172,326. The total amount due to the City and Housing Authority from the Successor Agency on these prior advances is $57,183,788. 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, 2024, the following defeased bond issues are still outstanding:

OutstandingAmountThe Combined Housing Financing Bonds 2003 Issue 2,495,000$ Tax Allocation Bonds (Housing Programs) 2009 Issue 19,880,000 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, 2024

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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 297 participants in the Plan for the year ended June 30, 2024. Employer contributions are based on an employee’s tier of eligibility. For the year ended June 30, 2024, employer contributions totaled $1,572,000. 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, 2024

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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, 2024. Employer contributions for the year ended June 30, 2024, totaled $739,652.

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, 2023, were restated as follows:

LancasterCaliforniaGovernmentalHousing LA County Business-TypeChoice EnergyActivitiesAuthorityReimbursementMeasure HActivitiesAuthorityNet Position/Fund Balance - Beginning of Year, as Previously Reported, July 1, 20231,025,190,861$ 73,120,880$ (255,676)$ -$ 10,762,536$ 1,009,951$ Increase in Net Position/Fund Balance for Correction of an Error: Land Disposals Recorded in the Housing Authority(7,056,907) (7,056,907) - - - - Land Disposals Recorded in Governmental Activities (2,333,078) - - - - - Land Acquisitions Recorded in the Housing Authority5,030,823 5,030,823 - - - - Donated Acquistions Held for Resale in the Housing Authority6,563,702 - - - - - Decrease in Net Position/Fund Balance for Other Restatement: Change Within Financial Reporting Entity- - 216,892 (216,892) (1,009,951) (1,009,951) Net Position/Fund Balance - Beginning of Year, as Restated, July 1, 20231,027,395,401$ 71,094,796$ (38,784)$ (216,892)$ 9,752,585$ -$

A. Changes Within Financial Reporting Entity
Change in Component Unit
California Choice Energy Authority (Energy Authority) was previously reported as a blended component unit in the City’s financial statement because its board was substantively the same as the City of Lancaster City Council. However, effective January 2024, each member of the Energy Authority appointed a representative to be a Board Member. Therefore, because the board no longer is substantively the same as the City of Lancaster’s City Council, the Energy Authority no longer meets the requirements for presentation as a blended component unit. The effects of that change within the financial reporting entity are in the table above.

CITY OF LANCASTER

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024

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NOTE 20 RESTATEMENT (CONTINUED)
A. Changes Within Financial Reporting Entity (Continued) Change Reporting Fund
The Measure H Special Revenue Fund, which was previously included within the Los Angeles County Reimbursement Special Revenue Fund, is now being reported as a separate fund by management in the current year.

B. Correction of an Error in Previously Issued Financial Statements During fiscal year 2024, the City discovered that parcels of land purchased within the Lancaster Housing Authority in a previous period were not properly reported, resulting in a net impact of $2 million. Of this amount, $3.65 million was donated to a non-profit organization in fiscal year 2023 but was not properly expensed. Additionally, $2.35 million pertains to land sold in fiscal year 2023, that was not properly disposed. Another $1 million is related to the correction of an error due to improper financial statement classification. Prior period land acquisitions include $5 million of land that was erroneously expensed to land acquisitions instead of being capitalized, and $6.5 million of donated land intended for sale, which is offset by a deferred inflow of resources on the Lancaster Housing Authority Special Revenue Fund statement and presented as a correction of an error in the Statement of Activities.

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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, 2024

(88)
Fiscal Year EndedJune 30, 2024June 30, 2023June 30, 2022June 30, 2021June 30, 2020Measurement Period EndedJune 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019Total Pension Liability:Service Cost4,617,487$ 4,222,786$ 3,835,000$ 3,812,712$ 3,984,412$ Interest on Total Pension Liability15,486,594 14,305,083 13,947,225 13,228,411 12,492,922 Differences Between Expected and Actual Experience8,337,543 (4,406,814) 1,656,000 1,608,904 1,303,631 Changes in Assumptions- 7,974,044 - - - Changes in Benefit Terms 218,866 - - - - Benefit Payments, Including Refunds of Employee Contributions(10,800,859) (9,515,662) (9,063,152) (8,246,671) (7,180,971) Net Change in Total Pension Liability17,859,631 12,579,437 10,375,073 10,403,356 10,599,994 Total Pension Liability - Beginning of Year218,978,683 206,399,246 196,024,173 185,620,817 175,020,823 Total Pension Liability - End of Year (a)236,838,314$ 218,978,683$ 206,399,246$ 196,024,173$ 185,620,817$ Plan Fiduciary Net Position:Contributions - Employer8,635,828$ 7,691,954$ 6,735,805$ 6,104,781$ 5,376,086$ Contributions - Employee1,893,145 1,681,343 1,518,908 1,680,632 1,594,327 Net Investment Income (Loss)9,381,408 (12,367,601) 30,324,328 6,427,646 7,935,508 Benefit Payments(10,800,859) (9,515,662) (9,063,152) (8,246,671) (7,180,971) Net Plan to Plan Resource Movement- - - - 277 Administrative and Other Expense(110,210) (101,218) (132,960) (179,482) (85,403) Net Change in Plan Fiduciary Net Position8,999,312 (12,611,184) 29,382,929 5,786,906 7,639,824 Plan Fiduciary Net Position - Beginning of Year149,873,354 162,484,538 133,101,609 127,314,703 119,674,879 Plan Fiduciary Net Position - End of Year (b)158,872,666$ 149,873,354$ 162,484,538$ 133,101,609$ 127,314,703$ Net Pension Liability (Asset) - Ending (a)-(b)77,965,648$ 69,105,329$ 43,914,708$ 62,922,564$ 58,306,114$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability67.08%68.44%78.72%67.90%68.59%Covered Payroll30,917,064$ 26,429,406$ 23,010,769$ 20,370,100$ 19,995,467$ Net Pension Liability as Percentage of Covered Payroll252.18%261.47%190.84%308.90%291.60%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%.From fiscal year June 30, 2023, to June 30, 2024:There were no changes in assumptions.

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, 2024

(89)
Fiscal Year EndedJune 30, 2019June 30, 2018June 30, 2017June 30, 2016June 30, 2015Measurement Period EndedJune 30, 2018June 30, 2017June 30, 2016June 30, 2015June 30, 2014Total Pension Liability:Service Cost4,089,766$ 4,120,166$ 3,757,280$ 3,659,838$ 3,783,673$ Interest on Total Pension Liability11,749,454 11,094,780 10,446,457 9,650,056 9,015,665 Differences Between Expected and Actual Experience925,375 (449,010) 1,362,060 (445,730) - Changes in Assumptions(1,119,628) 9,732,561 - (2,517,116) - Changes in Benefit Terms - - - - - Benefit Payments, Including Refunds of Employee Contributions(6,203,088) (5,495,333) (4,608,628) (4,011,772) (3,666,038) Net Change in Total Pension Liability9,441,879 19,003,164 10,957,169 6,335,276 9,133,300 Total Pension Liability - Beginning of Year165,578,944 146,575,780 135,618,611 129,283,335 120,150,035 Total Pension Liability - End of Year (a)175,020,823$ 165,578,944$ 146,575,780$ 135,618,611$ 129,283,335$ Plan Fiduciary Net Position:Contributions - Employer4,949,350$ 4,609,250$ 4,077,018$ 3,803,574$ 3,549,119$ Contributions - Employee1,606,648 1,558,516 1,628,815 1,611,229 1,556,684 Net Investment Income (Loss)9,429,980 11,061,811 535,654 2,090,380 13,752,204 Benefit Payments(6,203,088) (5,495,333) (4,608,628) (4,011,772) (3,666,038) Net Plan to Plan Resource Movement(277) - - - - Administrative and Other Expense(498,688) (145,875) (59,256) (109,427) - Net Change in Plan Fiduciary Net Position9,283,925 11,588,369 1,573,603 3,383,984 15,191,969 Plan Fiduciary Net Position - Beginning of Year110,390,954 98,802,585 97,228,982 93,844,998 78,653,029 Plan Fiduciary Net Position - End of Year (b)119,674,879$ 110,390,954$ 98,802,585$ 97,228,982$ 93,844,998$ Net Pension Liability (Asset) - Ending (a)-(b)55,345,944$ 55,187,990$ 47,773,195$ 38,389,629$ 35,438,337$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability68.38%66.67%67.41%71.69%72.59%Covered Payroll20,482,128$ 19,501,764$ 19,428,612$ 19,407,546$ 19,312,337$ Net Pension Liability as Percentage of Covered Payroll270.22%282.99%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%.From fiscal year June 30, 2023, to June 30, 2024:There were no changes in assumptions.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024

(90)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020Actuarially Determined Contribution 9,181,497$ 8,632,023$ 7,699,142$ 6,735,678$ 6,104,781$ Contributions in Relation to the Actuarially Determined Contributions (9,181,497) (8,632,023) (7,699,142) (6,735,678) (6,104,781) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll 26,429,406$ 23,010,769$ 20,370,100$ 20,158,000$ 20,370,100$ Contributions as a Percentage of Covered Payroll 34.74% 37.51% 37.80% 33.41% 29.92%Notes to Schedule:Valuation Date6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017Methods 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% 2.30% 2.75% 2.75% 2.75%Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 6.90% (3) 6.90% (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.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS
CalPERS PENSION PLANS (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024

(91)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016Actuarially Determined Contribution 5,376,086$ 4,949,350$ 4,609,250$ 4,077,018$ Contributions in Relation to the Actuarially Determined Contributions (5,376,086) (4,949,350) (4,609,250) (4,077,018) Contribution Deficiency (Excess)-$ -$ -$ -$ Covered Payroll 19,995,467$ 20,482,128$ 19,501,764$ 19,428,612$ Contributions as a Percentage of Covered Payroll 26.81% 24.16% 22.71% 20.96%Notes to Schedule:Valuation Date6/30/2016 6/30/2015 6/30/2014 6/30/213 Methods and Assumptions Used to Determine Contribution Rates:Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Inflation2.75% 2.75% 2.75% 2.75%Salary Increases (2) (2) (2) (2) Investment Rate of Return 7.375% (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, 2024

(92)
Fiscal Year EndedJune 30, 2024June 30, 2023June 30, 2022June 30, 2021June 30, 2020Measurement Period EndedJune 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019Total Pension Liability:Service Cost-$ -$ -$ -$ 1,569$ Interest on Total Pension Liability482,476 494,992 481,917 545,037 569,756 Differences Between Expected and Actual Experience(184,766) - - - 134,522 Changes in Assumptions(18,652) 35,169 (670,041) 1,173,341 439,122 Changes in benefits- - (163,673) - - Benefit Payments, Including Refunds of Employee Contributions(756,009) (728,778) (710,129) (705,047) (694,049) Net Change in Total Pension Liability(476,951) (198,617) (1,061,926) 1,013,331 450,920 Total Pension Liability - Beginning of Year11,677,215 11,875,832 12,937,758 11,924,427 11,473,507 Total Pension Liability - End of Year (a)11,200,264$ 11,677,215$ 11,875,832$ 12,937,758$ 11,924,427$ Plan Fiduciary Net Position:Contributions - Employer-$ -$ -$ -$ -$ Contributions - Employee- - - - - Net Investment Income (Loss)580,129 (1,187,427) 1,786,017 262,205 536,880 Administrative Expense(14,315) (16,638) (16,893) (16,793) (17,313) Benefit Payments(756,009) (728,778) (710,129) (705,047) (694,049) Net Change in Plan Fiduciary Net Position(190,195) (1,932,843) 1,058,995 (459,635) (174,482) Plan Fiduciary Net Position - Beginning of Year7,571,389 9,504,232 8,445,237 8,904,872 9,079,354 Plan Fiduciary Net Position - End of Year (b)7,381,194$ 7,571,389$ 9,504,232$ 8,445,237$ 8,904,872$ Net Pension Liability (Asset) - Ending (a)-(b)3,819,070$ 4,105,826$ 2,371,600$ 4,492,521$ 3,019,555$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability65.90%64.84%80.03%65.28%74.68%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%.From fiscal year June 30, 2023, to June 30, 2024:The discount rate was updated from 4.27% to 4.32%.

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, 2024

(93)
Fiscal Year EndedJune 30, 2019June 30, 2018June 30, 2017June 30, 2016June 30, 2015Measurement Period EndedJune 30, 2018June 30, 2017June 30, 2016June 30, 2015June 30, 2014Total Pension Liability:Service Cost1,577$ 1,485$ 1,000$ 1,000$ 1,000$ Interest on Total Pension Liability568,236 578,723 636,000 605,000 607,000 Differences Between Expected and Actual Experience- 89,030 - 156,000 - Changes in Assumptions(188,575) (161,368) 1,837,000 350,000 - Changes in benefits- - - - - Benefit Payments, Including Refunds of Employee Contributions(678,957) (665,644) (652,000) (640,000) (627,000) Net Change in Total Pension Liability(297,719) (157,774) 1,822,000 472,000 (19,000) Total Pension Liability - Beginning of Year11,771,226 11,929,000 10,107,000 9,635,000 9,654,000 Total Pension Liability - End of Year (a)11,473,507$ 11,771,226$ 11,929,000$ 10,107,000$ 9,635,000$ Plan Fiduciary Net Position:Contributions - Employer-$ -$ -$ -$ -$ Contributions - Employee- - - - - Net Investment Income (Loss)551,796 881,421 (108) 230,000 1,204,000 Administrative Expense(18,115) (18,063) (23,332) (20,000) (20,000) Benefit Payments(678,957) (665,644) (665,644) (640,000) (627,000) Net Change in Plan Fiduciary Net Position(145,276) 197,714 (689,084) (430,000) 557,000 Plan Fiduciary Net Position - Beginning of Year9,224,630 9,026,916 9,716,000 10,146,000 9,589,000 Plan Fiduciary Net Position - End of Year (b)9,079,354$ 9,224,630$ 9,026,916$ 9,716,000$ 10,146,000$ Net Pension Liability (Asset) - Ending (a)-(b)2,394,153$ 2,546,596$ 2,902,084$ 391,000$ (511,000)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability79.13%78.37%75.67%96.13%105.30%Covered PayrollNoneNoneNoneNoneNoneNet Pension Liability as Percentage of Covered PayrollN/AN/AN/AN/AN/A

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS

PARS PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2024

(94)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020Actuarially Determined Contribution 218,175$ 234,572$ 217,689$ 233,631$ 311,000$ Contributions in Relation to the Actuarially Determined Contributions - - - - - Contribution Deficiency (Excess) 218,175$ 234,572$ 217,689$ 233,631$ 311,000$ 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 Date6/30/2022 6/30/2021 6/30/2021 6/30/2019 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% 2.50% 2.75% 2.75%Salary Scale:Aggregate3.00% 3.00% 3.00% 3.00% 3.00%Merit (CalPERS Experience Study)2021 2000-2019 2000-2019 1997-2015 1997-2015Investment Rate of Return:06/30/23 Valuation 4.32%, including inflation and net of investment expenses06/30/21 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 and 6/30/23 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:06/30/24 Measurement Date CalPERS 2021 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2021.06/30/22 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.

CITY OF LANCASTER

SCHEDULE OF CONTRIBUTIONS

PARS PENSION PLAN (CONTINUED)
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2024

(95)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015Actuarially Determined Contribution 337,000$ 89,000$ 93,000$ 52,000$ -$ Contributions in Relation to the Actuarially Determined Contributions - - - - - Contribution Deficiency (Excess) 337,000$ 89,000$ 93,000$ 52,000$ -$ 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 Date6/30/2017 6/30/2015 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 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 Closed 10 Years OpenAsset Valuation MethodMarket Value Market Value Market Value Market Value Market ValueInflation2.75% 3.00% 3.00% 3.00% 3.00%Salary Scale:Aggregate3.00% 3.25% 3.25% 3.25% 3.25%Merit (CalPERS Experience Study)1997-2015 1997-2011 1997-2011 1997-2007 1997-2007Investment Rate of Return:06/30/23 Valuation 4.32%, including inflation and net of investment expenses06/30/21 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 and 6/30/23 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:06/30/24 Measurement Date CalPERS 2021 Experience Study, Mortality Table projected fully generationalwith Society of Actuaries Scale MP-2021.06/30/22 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.

CITY OF LANCASTER

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2024

(96)
Fiscal Year End6/30/20246/30/20236/30/20226/30/20216/30/20206/30/20196/30/2018Measurement Date6/30/20236/30/20226/30/20216/30/20206/30/20196/30/20186/30/2017Total OPEB Liability:Service Cost427,974$ 416,520$ 556,718$ 544,912$ 514,497$ 549,862$ 533,847$ Interest on Total OPEB Liability1,311,591 1,262,548 1,747,735 1,711,964 1,640,380 1,574,306 1,500,990 Change in Assumption560,296 (643,491) (358,865) (498,407) (1,320,939) - - Difference Between Expected and Actual Experience(2,174,130) - (5,656,872) - 1,492,298 - - Benefit Payments, Including Refunds of Employee Contributions(1,220,306) (1,181,090) (1,132,629) (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Total OPEB Liability(1,094,575) (145,513) (4,843,913) 495,226 1,166,861 1,220,288 1,183,104 Total OPEB Liability - Beginning of Year22,983,928 23,129,441 27,973,354 27,478,128 26,311,267 25,090,979 23,907,875 Total OPEB Liability - End of Year (a)21,889,353 22,983,928 23,129,441 27,973,354 27,478,128 26,311,267 25,090,979 Plan Fiduciary Net Position:Contributions - Employer3,038,434 3,027,605 1,132,629 2,451,000 2,973,720 2,521,850 2,757,002 Net Investment Income569,865 (2,062,879) 2,423,434 652,096 717,403 470,766 400,018 Administrative Expenses(4,573) (4,093) (4,425) (6,167) (2,205) (11,481) (3,027) Benefit Payments(1,220,306) (1,181,090) (1,132,629) (1,263,243) (1,159,375) (903,880) (851,733) Net Change in Plan Fiduciary Net Position2,383,420 (220,457) 2,419,009 1,833,686 2,529,543 2,077,255 2,302,260 Plan Fiduciary Net Position - Beginning of Year14,200,195 14,420,652 12,001,643 10,167,957 7,638,414 5,561,159 3,258,899 Plan Fiduciary Net Position - End of Year (b)16,583,615 14,200,195 14,420,652 12,001,643 10,167,957 7,638,414 5,561,159 Net OPEB Liability - Ending (a)-(b) 5,305,738$ 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 Liability75.76%61.78%62.35%42.90%37.00%29.03%22.16%Covered - Employee Payroll26,906,110$ 24,544,346$ 21,125,169$ 20,370,100$ 21,066,497$ 19,015,391$ 20,878,494$ Net OPEB Liability as Percentage of Covered - Employee Payroll19.72%35.79%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 KaiserFrom fiscal year June 30, 2023, to June 30, 2024:Discount rate changed from 5.75% to 5.50%* Fiscal year 2018 was the first year of implementation, and therefore, only seven years are shown.

CITY OF LANCASTER
SCHEDULE OF CONTRIBUTIONS – OPEB
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2024

(97)
Fiscal Year EndedJune 30, 2024June 30, 2023June 30, 2022June 30, 2021June 30, 2020June 30, 2019June 30, 2018Contractually Required Contribution (Actuarially Determined)1,080,580$ 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(2,307,440) (3,038,434) (3,027,604) (1,132,629) (2,451,000) (2,973,720) (2,521,850) Contribution Deficiency (Excess) (1,226,860)$ (1,938,496)$ (1,181,089)$ 852,898$ (478,000)$ (964,720)$ (422,850)$ Covered - Employee Payroll29,550,948$ 26,906,110$ 24,544,346$ 21,125,169$ 20,370,100$ 21,066,497$ 19,015,391$ Contributions as a Percentage of Covered - Employee Payroll10.20%11.30%12.30%5.36%12.03%14.12%13.26%Notes to Schedule:Valuation Date6/30/20236/30/20216/30/20196/30/20196/30/20176/30/20176/30/2015Methods and Assumptions Used to Determine Contribution Rates:Single and Agent EmployersEntry AgeEntry AgeEntry AgeEntry AgeEntry AgeEntry ageEntry ageAmortization MethodLevel DollarLevel DollarLevel DollarLevel DollarLevel DollarLevel dollarLevel dollarAmortization Period20 Year Fixed22 Year Fixed23 Year Fixed24 Year Fixed25 Year Fixed26 Year Fixed27 Year FixedPeriodPeriodPeriodPeriodPeriodPeriodPeriodInflation2.50%2.50%2.75%2.75%2.75%2.75%3.00%MortalityCalPERSCalPERSCalPERSCalPERSCalPERSCalPERSCalPERS20212000-20191997-20151997-20151997-20151997-20151997-2011ExperienceExperienceExperienceExperienceExperienceExperienceExperienceMortality ImprovementsMortalityMortalityMortalityMortalityMortalityMortalityMortalityProjected FullyProjected FullyProjected FullyProjected FullyProjected FullyProjected FullyProjected FullyGenerationalGenerationalGenerationalGenerationalGenerationalGenerationalGenerationalWith ScaleWith ScaleWith ScaleWith ScaleWith ScaleWith ScaleWith ScaleMP-2021MP-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 to5.00% in 2021.06/30/17 ValuationNon-Medicare 7.50% decreasing to 4.00% in 2076, Medicare 6.50% decreasing to4.00% in 2076.06/30/19 ValuationNon-Medicare 7.25% decreasing to 4.00% in 2076, Medicare 6.30% decreasing to4.00% 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 2076.06/30/23 ValuationInitial rate of 8.00%, decreasing 0.50% annually to an ultimate rate of 4.50% for Pre-65 and 6.50%decreasing by 0.25% annually to an ultimate rate of 4.50% for Post-65.

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SUPPLEMENTARY INFORMATION

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COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2024

(102)

Landscape Housing and Community Maintenance Community Gas Tax Services District DevelopmentASSETSPooled Cash and Investments 2,984,021$ 90,587$ 850,165$ 1,736,681$ Receivables:Accounts 35,591 26,944 - 224,373 Taxes 1,651,442 - 16,998 - Due from Other Governments - - - 1,239,601 Notes and Loans, Net - - - - Prepaid Items 133,161 - - - Restricted Assets:Cash and Investments With Fiscal Agents - - - - Total Assets 4,804,215$ 117,531$ 867,163$ 3,200,655$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 473,576$ 9,807$ 164,664$ 722,763$ Accrued Liabilities 248,773 - 7,229 116,055 Unearned Revenues - - - 60,932 Due to Other Funds - - - - Retentions Payable 41,805 - - - Total Liabilities 764,154 9,807 171,893 899,750 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 79,350 19,943 - 1,239,601 Total Deferred Inflows of Resources 79,350 19,943 - 1,239,601 FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items 133,161 - - - Restricted:Community Development Projects - 87,781 - 1,061,304 Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services 3,827,550 - 695,270 - Housing and Neighborhood Revitalization - - - - Unassigned - - - - Total Fund Balances (Deficits) 3,960,711 87,781 695,270 1,061,304 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 4,804,215$ 117,531$ 867,163$ 3,200,655$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(103)

HOME BikewayProgram Proposition A Improvement Proposition CASSETSPooled Cash and Investments 916,999$ 7,514,482$ -$ 10,818,267$ Receivables:Accounts 117,998 - - - Taxes - - - 302,616 Due from Other Governments - - - - Notes and Loans, Net 590,061 - - - Prepaid Items - - - - Restricted Assets:Cash and Investments With Fiscal Agents - - - - Total Assets 1,625,058$ 7,514,482$ -$ 11,120,883$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 70,118$ -$ 218,386$ Accrued Liabilities - 2,091 - 2,401 Unearned Revenues - - - - Due to Other Funds - - 18,125 - Retentions Payable - - - 55,766 Total Liabilities - 72,209 18,125 276,553 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 - 7,442,273 - 10,844,330 Housing and Neighborhood Revitalization 1,625,058 - - - Unassigned - - (18,125) - Total Fund Balances (Deficits) 1,625,058 7,442,273 (18,125) 10,844,330 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 1,625,058$ 7,514,482$ -$ 11,120,883$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(104)

DeveloperFederal State Parks Fees -Grants Grants Development SignalsASSETSPooled Cash and Investments -$ -$ 536,947$ 3,087,958$ Receivables:Accounts 1,409,876 78,319 - 103,599 Taxes - - - - Due from Other Governments 1,568,472 2,944,632 - - Notes and Loans, Net - - - - Prepaid Items - - - - Restricted Assets:Cash and Investments With Fiscal Agents - - - - Total Assets 2,978,348$ 3,022,951$ 536,947$ 3,191,557$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 324,510$ 449,806$ 70,590$ 103,121$ Accrued Liabilities 3,549 63,862 - - Unearned Revenues - 757,453 - 103,599 Due to Other Funds 1,988,534 1,588,914 - - Retentions Payable - - - - Total Liabilities 2,316,593 2,860,035 70,590 206,720 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 534,816 2,960,428 - - Total Deferred Inflows of Resources 534,816 2,960,428 - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects 126,939 - - - Public Safety - - - - Parks, Recreation, and Arts - - 466,357 - Development Services - - - 2,984,837 Housing and Neighborhood Revitalization - - - - Unassigned - (2,797,512) - - Total Fund Balances (Deficits) 126,939 (2,797,512) 466,357 2,984,837 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 2,978,348$ 3,022,951$ 536,947$ 3,191,557$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(105)

Developer Biological TrafficFees - Recycled Impact ImpactDrainage Water Fees FeesASSETSPooled Cash and Investments 11,256,521$ -$ 1,047,770$ 2,609,705$ Receivables:Accounts 247,252 16,239 - 222,388 Taxes - - - - Due from Other Governments - - - - Notes and Loans, Net - - - - Prepaid Items - - - - Restricted Assets:Cash and Investments With Fiscal Agents - - - - Total Assets 11,503,773$ 16,239$ 1,047,770$ 2,832,093$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 268,589$ 21,316$ -$ 242,823$ Accrued Liabilities 460 3,998 - 1,189 Unearned Revenues 247,252 - - 222,388 Due to Other Funds - 107,779 - - Retentions Payable - - - - Total Liabilities 516,301 133,093 - 466,400 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - 7,289 - - Total Deferred Inflows of Resources - 7,289 - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - - Development Services 10,987,472 - 1,047,770 2,365,693 Housing and Neighborhood Revitalization - - - - Unassigned - (124,143) - - Total Fund Balances (Deficits) 10,987,472 (124,143) 1,047,770 2,365,693 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 11,503,773$ 16,239$ 1,047,770$ 2,832,093$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(106)

Lancaster Zero-Net Drainage Energy Solar Maintenance Traffic MitigationAQMD District Safety In LieuASSETSPooled Cash and Investments -$ 938,863$ 257,669$ 117,379$ Receivables:Accounts 18,750 - - - Taxes - 42,599 27,259 - Due from Other Governments - - - - Notes and Loans, Net - - - - Prepaid Items - - - - Restricted Assets:Cash and Investments With Fiscal Agents - - - - Total Assets 18,750$ 981,462$ 284,928$ 117,379$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 4,375$ 43,275$ -$ -$ Accrued Liabilities - 36,374 - - Unearned Revenues - - - - Due to Other Funds 14,375 - - - Retentions Payable - - - - Total Liabilities 18,750 79,649 - - DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 18,750 - - - Total Deferred Inflows of Resources 18,750 - - - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - 284,928 - Parks, Recreation, and Arts - - - - Development Services - 901,813 - 117,379 Housing and Neighborhood Revitalization - - - - Unassigned (18,750) - - - Total Fund Balances (Deficits) (18,750) 901,813 284,928 117,379 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 18,750$ 981,462$ 284,928$ 117,379$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(107)

Urban LA County StructureReimbursement Measure H MTA Grant ProgramASSETSPooled Cash and Investments -$ -$ -$ 1,882,368$ Receivables:Accounts 364,009 2,303,641 1,408,073 25,646 Taxes - - - - Due from Other Governments - 238,403 1,164,514 - Notes and Loans, Net - - - - Prepaid Items - - - - Restricted Assets:Cash and Investments With Fiscal Agents - - - - Total Assets 364,009$ 2,542,044$ 2,572,587$ 1,908,014$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 129,780$ 84,567$ 217,518$ Accrued Liabilities - 60,650 20,566 - Unearned Revenues - - - 25,646 Due to Other Funds 364,009 2,378,506 2,357,299 - Retentions Payable - - 109,625 - Total Liabilities 364,009 2,568,936 2,572,057 243,164 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 364,009 238,403 1,290,494 - Total Deferred Inflows of Resources 364,009 238,403 1,290,494 - FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - - - - Restricted:Community Development Projects - - - - Public Safety - - - - Parks, Recreation, and Arts - - - 1,664,850 Development Services - - - Housing and Neighborhood Revitalization - - - - Unassigned (364,009) (265,295) (1,289,964) - Total Fund Balances (Deficits) (364,009) (265,295) (1,289,964) 1,664,850 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 364,009$ 2,542,044$ 2,572,587$ 1,908,014$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(108)

SewerMariposa Maintenance Proposition Proposition Lily District 1B 42 Measure RASSETSPooled Cash and Investments 62,733$ 1,006,650$ 6,296$ 46,543$ -$ Receivables:Accounts - 14,106 - - 1,866,389 Taxes - 79,063 - - 227,629 Due from Other Governments - - - - 12,257,739 Notes and Loans, Net - - - - - Prepaid Items - 16,900 - - 240 Restricted Assets:Cash and Investments With Fiscal Agents - - - - - Total Assets 62,733$ 1,116,719$ 6,296$ 46,543$ 14,351,997$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable -$ 168,020$ -$ -$ 2,919,863$ Accrued Liabilities - 103,985 - - 9,440 Unearned Revenues - - - - - Due to Other Funds - - - - 5,084,246 Retentions Payable - 91,144 - - 598,589 Total Liabilities - 363,149 - - 8,612,138 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues - - - - 12,266,512 Total Deferred Inflows of Resources - - - - 12,266,512 FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items - 16,900 - - 240 Restricted:Community Development Projects - - - - - Public Safety - - - - - Parks, Recreation, and Arts - - - - - Development Services 62,733 736,670 6,296 46,543 - Housing and Neighborhood Revitalization - - - - - Unassigned - - - - (6,526,893) Total Fund Balances (Deficits) 62,733 753,570 6,296 46,543 (6,526,653) Total Liabilities, Deferred Inflows of Resources, and Fund Balances 62,733$ 1,116,719$ 6,296$ 46,543$ 14,351,997$ Special Revenue Funds

CITY OF LANCASTER

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

(109)
Capital ProjectsFundTotalLancaster OtherLighting Capital GovernmentalMeasure M District AVAQMD Projects FundsASSETSPooled Cash and Investments 1,921,272$ 7,132,181$ -$ -$ 56,822,057$ Receivables:Accounts - 75,535 324,231 - 8,882,959 Taxes 258,073 127,486 - - 2,733,165 Due from Other Governments 62,024 - - - 19,475,385 Notes and Loans, Net - - - - 590,061 Prepaid Items 360 750 - - 151,411 Restricted Assets:Cash and Investments With Fiscal Agents - 479 - - 479 Total Assets 2,241,729$ 7,336,431$ 324,231$ -$ 88,655,517$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLIABILITIESAccounts Payable 28,550$ 625,824$ -$ -$ 7,361,841$ Accrued Liabilities 58,249 17,638 44,792 - 801,301 Unearned Revenues - - - - 1,417,270 Due to Other Funds - - 266,741 - 14,168,528 Retentions Payable - - - - 896,929 Total Liabilities 86,799 643,462 311,533 - 24,645,869 DEFERRED INFLOWS OF RESOURCESUnavailable Revenues 62,024 31,690 324,231 - 19,437,540 Total Deferred Inflows of Resources 62,024 31,690 324,231 - 19,437,540 FUND BALANCES (DEFICITS)Nonspendable:Prepaid Items 360 750 - - 151,411 Restricted:Community Development Projects - - - - 1,276,024 Public Safety - - - - 284,928 Parks, Recreation, and Arts - - - - 2,131,207 Development Services 2,092,546 6,660,529 - - 50,819,704 Housing and Neighborhood Revitalization - - - - 1,625,058 Unassigned - - (311,533) - (11,716,224) Total Fund Balances (Deficits) 2,092,906 6,661,279 (311,533) - 44,572,108 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 2,241,729$ 7,336,431$ 324,231$ -$ 88,655,517$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024

(110)

Landscape Housing and Community Maintenance Community Gas Tax Services District DevelopmentREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental 9,345,674 - - 3,612,730 Charges for Services - - 2,136,781 - Investment Earnings 152,013 - - - Fines and Forfeitures - - - - Contributions - - 20,310 - Miscellaneous 2,186 40,898 525 - Total Revenues 9,499,873 40,898 2,157,616 3,612,730 EXPENDITURESCurrent:General Government 69,912 20,459 - 2,205,005 Public Safety - - - - Community Development - - - - Parks, Recreation, and Arts 67,823 20,380 - - Development Services 8,365,656 1,676 2,571,425 - Housing and Neighborhood Revitalization - - - 247,694 Capital Outlay 3,765,025 - - 2,225,710 Debt Service:Principal Retirement - - - 205,000 Interest and Fiscal Charges - - - 5,891 Total Expenditures 12,268,416 42,515 2,571,425 4,889,300 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(2,768,543) (1,617) (413,809) (1,276,570) OTHER FINANCING SOURCES (USES)Transfers In 5,869,807 - - 671 Transfers Out (2,772,559) - (263,119) (571,453) Total Other Financing Sources (Uses) 3,097,248 - (263,119) (570,782) NET CHANGE IN FUND BALANCES328,705 (1,617) (676,928) (1,847,352) Fund Balances (Deficits) - Beginning of Year, as Previously Presented 3,632,006 89,398 1,372,198 2,908,656 Change within the financial reporting entity - - - - Fund Balances (Deficits) - Beginning of Year, as Restated 3,632,006 89,398 1,372,198 2,908,656 FUND BALANCES (DEFICITS) - END OF YEAR3,960,711$ 87,781$ 695,270$ 1,061,304$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

(111)

HOME BikewayProgram Proposition A Improvement Proposition CREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental 1,286,042 4,644,715 190,039 3,852,684 Charges for Services - - - - Investment Earnings - 174,446 - 248,552 Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 1,286,042 4,819,161 190,039 4,101,236 EXPENDITURESCurrent:General Government 1,281,382 1,607,025 - - Public Safety - - - - Community Development - - - - Parks, Recreation, and Arts - 110,071 - - Development Services - 120,146 31,505 257,775 Housing and Neighborhood Revitalization - - - - Capital Outlay - 596,710 181,467 2,403,028 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 1,281,382 2,433,952 212,972 2,660,803 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES4,660 2,385,209 (22,933) 1,440,433 OTHER FINANCING SOURCES (USES)Transfers In - 65,091 - 19,802 Transfers Out (719) (174,697) (12,464) - Total Other Financing Sources (Uses) (719) (109,606) (12,464) 19,802 NET CHANGE IN FUND BALANCES3,941 2,275,603 (35,397) 1,460,235 Fund Balances (Deficits) - Beginning of Year, as Previously Presented 1,621,117 5,166,670 17,272 9,384,095 Change within the financial reporting entity - - - - Fund Balances (Deficits) - Beginning of Year, as Restated 1,621,117 5,166,670 17,272 9,384,095 FUND BALANCES (DEFICITS) - END OF YEAR1,625,058$ 7,442,273$ (18,125)$ 10,844,330$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

(112)

DeveloperFederal State Parks Fees -Grants Grants Development SignalsREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - 27,680 219,843 Intergovernmental 6,503,969 1,600,009 - - Charges for Services - - - - Investment Earnings - - - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 6,503,969 1,600,009 27,680 219,843 EXPENDITURESCurrent:General Government - 180,179 - - Public Safety 796,853 132,165 - - Community Development - 373,221 - - Parks, Recreation, and Arts - 172,720 - - Development Services 139,123 273,924 - - Housing and Neighborhood Revitalization - - - - Capital Outlay 1,939,531 1,953,870 85,900 55,321 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 2,875,507 3,086,079 85,900 55,321 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES3,628,462 (1,486,070) (58,220) 164,522 OTHER FINANCING SOURCES (USES)Transfers In 2,416,225 217,469 - - Transfers Out (1,928,167) (52,383) - - Total Other Financing Sources (Uses) 488,058 165,086 - - NET CHANGE IN FUND BALANCES4,116,520 (1,320,984) (58,220) 164,522 Fund Balances (Deficits) - Beginning of Year, as Previously Presented (3,989,581) (1,476,528) 524,577 2,820,315 Change within the financial reporting entity - - - - Fund Balances (Deficits) - Beginning of Year, as Restated (3,989,581) (1,476,528) 524,577 2,820,315 FUND BALANCES (DEFICITS) - END OF YEAR126,939$ (2,797,512)$ 466,357$ 2,984,837$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

(113)

Developer Biological TrafficFees - Recycled Impact ImpactDrainage Water Fees FeesREVENUESTaxes -$ -$ -$ -$ Licenses and Permits 255,055 - 119,882 612,427 Intergovernmental - - - - Charges for Services - 115,233 - - Investment Earnings - - - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues 255,055 115,233 119,882 612,427 EXPENDITURESCurrent:General Government - 580 - - Public Safety - - - - Community Development - - - - Parks, Recreation, and Arts - - - - Development Services 33,411 217,024 - - Housing and Neighborhood Revitalization - - - Capital Outlay 191,331 579 - - Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 224,742 218,183 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES30,313 (102,950) 119,882 612,427 OTHER FINANCING SOURCES (USES)Transfers In - - - - Transfers Out - (71,685) - (1,595) Total Other Financing Sources (Uses) - (71,685) - (1,595) NET CHANGE IN FUND BALANCES30,313 (174,635) 119,882 610,832 Fund Balances (Deficits) - Beginning of Year, as Previously Presented 10,957,159 50,492 927,888 1,754,861 Change within the financial reporting entity - - - - Fund Balances (Deficits) - Beginning of Year, as Restated 10,957,159 50,492 927,888 1,754,861 FUND BALANCES (DEFICITS) - END OF YEAR10,987,472$ (124,143)$ 1,047,770$ 2,365,693$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

(114)

Lancaster Zero-Net Drainage Energy Solar Maintenance Traffic MitigationAQMD District Safety In LieuREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - 2,388,126 - - Investment Earnings - - - - Fines and Forfeitures - - 96,542 - Contributions - - - - Miscellaneous - - 36,483 10,679 Total Revenues - 2,388,126 133,025 10,679 EXPENDITURESCurrent:General Government - - - - Public Safety - - - - Community Development 18,750 303,000 - - Parks, Recreation, and Arts - - - - Development Services - 1,517,566 - - Housing and Neighborhood Revitalization - - - - Capital Outlay - 668,897 - - Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 18,750 2,489,463 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(18,750) (101,337) 133,025 10,679 OTHER FINANCING SOURCES (USES)Transfers In - - - - Transfers Out (24,565) (624,368) (133,025) (505) Total Other Financing Sources (Uses) (24,565) (624,368) (133,025) (505) NET CHANGE IN FUND BALANCES(43,315) (725,705) - 10,174 Fund Balances (Deficits) - Beginning of Year, as Previously Presented 24,565 1,627,518 284,928 107,205 Change within the financial reporting entity - - - - Fund Balances (Deficits) - Beginning of Year, as Restated 24,565 1,627,518 284,928 107,205 FUND BALANCES (DEFICITS) - END OF YEAR(18,750)$ 901,813$ 284,928$ 117,379$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

(115)

Urban LA County StructureReimbursement Measure H MTA Grant ProgramREVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - 208,154 Intergovernmental - 2,163,635 1,859,989 - Charges for Services - - - - Investment Earnings - - - - Fines and Forfeitures - - - - Contributions - - - - Miscellaneous - - - - Total Revenues - 2,163,635 1,859,989 208,154 EXPENDITURESCurrent:General Government - - - - Public Safety - - - - Community Development - - - - Parks, Recreation, and Arts 322,045 2,185,316 - - Development Services - - 124,871 - Housing and Neighborhood Revitalization - - - - Capital Outlay - - 2,140,011 276,080 Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - - Total Expenditures 322,045 2,185,316 2,264,882 276,080 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES(322,045) (21,681) (404,893) (67,926) OTHER FINANCING SOURCES (USES)Transfers In - - 49,595 8,737 Transfers Out (3,180) (26,722) (49,306) (51,149) Total Other Financing Sources (Uses) (3,180) (26,722) 289 (42,412) NET CHANGE IN FUND BALANCES(325,225) (48,403) (404,604) (110,338) Fund Balances (Deficits) - Beginning of Year, as Previously Presented (255,676) - (885,360) 1,775,188 Change within the financial reporting entity 216,892 (216,892) - - Fund Balances (Deficits) - Beginning of Year, as Restated (38,784) (216,892) (885,360) 1,775,188 FUND BALANCES (DEFICITS) - END OF YEAR(364,009)$ (265,295)$ (1,289,964)$ 1,664,850$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024

(116)

SewerMariposa Maintenance Proposition Proposition Lily District 1B 42 Measure RREVENUESTaxes -$ 4,492,009$ -$ -$ -$ Licenses and Permits - 260,716 - - - Intergovernmental - - - - 8,846,255 Charges for Services - - - - - Investment Earnings - - 144 - 90,374 Fines and Forfeitures - - - - - Contributions - - - - - Miscellaneous - 103 - - - Total Revenues - 4,752,828 144 - 8,936,629 EXPENDITURESCurrent:General Government - 92,366 - - - Public Safety - - - - - Community Development - - - - - Parks, Recreation, and Arts - - - - - Development Services - 3,217,081 - - 267,050 Housing and Neighborhood Revitalization - - - - - Capital Outlay - 718,044 - - 10,315,097 Debt Service:Principal Retirement - - - - - Interest and Fiscal Charges - - - - - Total Expenditures - 4,027,491 - - 10,582,147 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES- 725,337 144 - (1,645,518) OTHER FINANCING SOURCES (USES)Transfers In - - - - 522,871 Transfers Out - (1,540,957) - - (1,079,849) Total Other Financing Sources (Uses) - (1,540,957) - - (556,978) NET CHANGE IN FUND BALANCES- (815,620) 144 - (2,202,496) Fund Balances (Deficits) - Beginning of Year, as Previously Presented 62,733 1,569,190 6,152 46,543 (4,324,157) Change within the financial reporting entity - - - - - Fund Balances (Deficits) - Beginning of Year, as Restated 62,733 1,569,190 6,152 46,543 (4,324,157) FUND BALANCES (DEFICITS) - END OF YEAR62,733$ 753,570$ 6,296$ 46,543$ (6,526,653)$ Special Revenue Funds

CITY OF LANCASTER

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024
(117)
Capital Projects
Fund
Total
Lancaster Other
Lighting Capital Governmental
Measure M District AVAQMD Projects Funds

REVENUES
Taxes -$ -$ -$ -$ 4,492,009$
Licenses and Permits - - - - 1,703,757
Intergovernmental 4,182,509 - - - 48,088,250
Charges for Services - 6,601,772 - - 11,241,912
Investment Earnings 70,393 - - - 735,922
Fines and Forfeitures - - - - 96,542
Contributions - - - - 20,310
Miscellaneous - 18,171 1,075,538 1,108 1,185,691
Total Revenues 4,252,902 6,619,943 1,075,538 1,108 67,564,393

EXPENDITURES
Current:

General Government - - 905,556 - 6,362,464
Public Safety - - - - 929,018
Community Development - 105,825 - - 800,796
Parks, Recreation, and Arts - - - - 2,878,355
Development Services 84,655 5,220,535 - - 22,443,423 Housing and Neighborhood Revitalization - - - - 247,694 Capital Outlay 1,741,427 6,090 - - 29,264,118
Debt Service:

Principal Retirement - 620,000 - - 825,000
Interest and Fiscal Charges - 352,056 - - 357,947
Total Expenditures 1,826,082 6,304,506 905,556 - 64,108,815

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,426,820 315,437 169,982 1,108 3,455,578

OTHER FINANCING SOURCES (USES)
Transfers In 26,184 - - 2,397,458 11,593,910
Transfers Out (1,619,773) (346,622) - (4,280,617) (15,629,479) Total Other Financing Sources (Uses) (1,593,589) (346,622) - (1,883,159) (4,035,569) NET CHANGE IN FUND BALANCES 833,231 (31,185) 169,982 (1,882,051) (579,991) Fund Balances (Deficits) - Beginning of Year,
as Previously Presented 1,259,675 6,692,464 (481,515) 1,882,051 45,152,099 Change within the financial reporting entity - - - - - Fund Balances (Deficits) - Beginning of Year,
as Restated 1,259,675 6,692,464 (481,515) 1,882,051 45,152,099 FUND BALANCES (DEFICITS) - END OF YEAR 2,092,906$ 6,661,279$ (311,533)$ -$ 44,572,108 $ 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, 2024

(118)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR3,632,006$ 3,632,006$ 3,632,006$ -$ RESOURCES (INFLOWS)Intergovernmental 8,986,575 8,986,575 9,345,674 359,099 Investment Earnings - - 152,013 152,013 Miscellaneous 240 1,272 2,186 914 Transfers In 10,018,879 10,018,879 5,869,807 (4,149,072) Amounts Available for Appropriations 22,637,700 22,638,732 19,001,686 (3,637,046) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government - - 69,912 (69,912) Parks, Recreation, and Arts 414,050 530,280 67,823 462,457 Development Services 11,369,196 9,387,187 8,365,656 1,021,531 Capital Outlay 4,276,849 8,073,412 3,765,025 4,308,387 Transfers Out 2,746,432 2,746,432 2,772,559 (26,127) Total Charges to Appropriations 18,806,527 20,737,311 15,040,975 5,696,336 BUDGETARY FUND BALANCE - END OF YEAR3,831,173$ 1,901,421$ 3,960,711$ 2,059,290$ 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, 2024

(119)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,372,198$ 1,372,198$ 1,372,198$ -$ RESOURCES (INFLOWS)Charges for Services 1,950,000 1,950,000 2,136,781 186,781 Contributions - - 20,310 20,310 Miscellaneous - - 525 525 Transfers In 929,108 929,108 - (929,108) Amounts Available for Appropriations 4,251,306 4,251,306 3,529,814 (721,492) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services 3,241,480 3,261,971 2,571,425 690,546 Transfers Out 263,366 263,366 263,119 247 Total Charges to Appropriations 3,504,846 3,525,337 2,834,544 690,793 BUDGETARY FUND BALANCE - END OF YEAR746,460$ 725,969$ 695,270$ (30,699)$ 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, 2024

(120)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR2,908,656$ 2,908,656$ 2,908,656$ -$ RESOURCES (INFLOWS)Intergovernmental 2,400,000 5,228,911 3,612,730 (1,616,181) Transfers In - - 671 671 Amounts Available for Appropriations 5,308,656 8,137,567 6,522,057 (1,615,510) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government - 2,324,527 2,205,005 119,522 Housing and Neighborhood Revitalization - 132,604 247,694 (115,090) Capital Outlay 1,457,443 4,024,784 2,225,710 1,799,074 Debt Service:Principal Retirement 199,954 205,000 205,000 - Interest and Fiscal Charges 5,891 5,891 5,891 - Transfers Out - - 571,453 (571,453) Total Charges to Appropriations 1,663,288 6,692,806 5,460,753 1,232,053 BUDGETARY FUND BALANCE - END OF YEAR3,645,368$ 1,444,761$ 1,061,304$ (383,457)$ 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, 2024

(121)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,621,117$ 1,621,117$ 1,621,117$ -$ RESOURCES (INFLOWS)Intergovernmental 2,000,000 2,000,000 1,286,042 (713,958) Amounts Available for Appropriations 3,621,117 3,621,117 2,907,159 (713,958) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government 2,804,046 2,922,046 1,281,382 1,640,664 Transfers Out 719 719 719 - Total Charges to Appropriations 2,804,765 2,922,765 1,282,101 1,640,664 BUDGETARY FUND BALANCE - END OF YEAR816,352$ 698,352$ 1,625,058$ 926,706$ 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, 2024

(122)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR5,166,670$ 5,166,670$ 5,166,670$ -$ RESOURCES (INFLOWS)Intergovernmental 5,062,428 5,062,428 4,644,715 (417,713) Investment Earnings 14,040 14,040 174,446 160,406 Transfers In - - 65,091 65,091 Amounts Available for Appropriations 10,243,138 10,243,138 10,050,922 (192,216) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government 1,610,090 1,610,090 1,607,025 3,065 Parks, Recreation, and Arts 270,203 270,203 110,071 160,132 Development Services 94,126 94,126 120,146 (26,020) Capital Outlay - 10,735,220 596,710 10,138,510 Transfers Out 174,697 174,697 174,697 - Total Charges to Appropriations 2,149,116 12,884,336 2,608,649 10,275,687 BUDGETARY FUND BALANCE - END OF YEAR8,094,022$ (2,641,198)$ 7,442,273$ 10,083,471$ 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, 2024

(123)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR17,272$ 17,272$ 17,272$ -$ RESOURCES (INFLOWS)Intergovernmental 204,932 204,932 190,039 (14,893) Amounts Available for Appropriations 222,204 222,204 207,311 (14,893) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 31,505 (31,505) Capital Outlay - 436,657 181,467 255,190 Transfers Out - - 12,464 (12,464) Total Charges to Appropriations - 436,657 225,436 211,221 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR222,204$ (214,453)$ (18,125)$ 196,328$ 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, 2024

(124)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR9,384,095$ 9,384,095$ 9,384,095$ -$ RESOURCES (INFLOWS)Intergovernmental4,199,151 4,199,151 3,852,684 (346,467) Investment Earnings 18,000 18,000 248,552 230,552 Transfers In- - 19,802 19,802 Amounts Available for Appropriations13,601,246 13,601,246 13,505,133 (96,113) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services- - 257,775 (257,775) Capital Outlay- 25,016,579 2,403,028 22,613,551 Total Charges to Appropriations- 25,016,579 2,660,803 22,355,776 BUDGETARY FUND BALANCE - END OF YEAR13,601,246$ (11,415,333)$ 10,844,330$ 22,259,663$ 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, 2024

(125)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(3,989,581)$ (3,989,581)$ (3,989,581)$ -$ RESOURCES (INFLOWS)Intergovernmental 6,856,288 7,956,288 6,503,969 (1,452,319) Transfers In - - 2,416,225 2,416,225 Amounts Available for Appropriations 2,866,707 3,966,707 4,930,613 963,906 CHARGES TO APPROPRIATIONS (OUTFLOWS)Public Safety - 1,100,000 796,853 303,147 Community Development 2,450,524 2,450,524 - 2,450,524 Development Services - - 139,123 (139,123) Capital Outlay 202,950 6,837,248 1,939,531 4,897,717 Transfers Out - - 1,928,167 (1,928,167) Total Charges to Appropriations 2,653,474 10,387,772 4,803,674 5,584,098 BUDGETARY FUND BALANCE - END OF YEAR213,233$ (6,421,065)$ 126,939$ 6,548,004$ 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, 2024

(126)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(1,476,528)$ (1,476,528)$ (1,476,528)$ -$ RESOURCES (INFLOWS)Intergovernmental 22,536,267 26,535,519 1,600,009 (24,935,510) Transfers In - - 217,469 217,469 Amounts Available for Appropriations 21,059,739 25,058,991 340,950 (24,718,041) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government - - 180,179 (180,179) Public Safety 60,000 402,000 132,165 269,835 Community Development 2,443,367 3,413,872 373,221 3,040,651 Parks, Recreation, and Arts - 1,403,006 172,720 1,230,286 Development Services - 585,550 273,924 311,626 Capital Outlay 12,144,240 29,302,736 1,953,870 27,348,866 Transfers Out 121,037 121,037 52,383 68,654 Total Charges to Appropriations 14,768,644 35,228,201 3,138,462 32,089,739 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR6,291,095$ (10,169,210)$ (2,797,512)$ 7,371,698$ 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, 2024

(127)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR524,577$ 524,577$ 524,577$ -$ RESOURCES (INFLOWS)Licenses and Permits 40,000 40,000 27,680 (12,320) Amounts Available for Appropriations 564,577 564,577 552,257 (12,320) CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay 134,750 403,113 85,900 317,213 Total Charges to Appropriations 134,750 403,113 85,900 317,213 BUDGETARY FUND BALANCE - END OF YEAR429,827$ 161,464$ 466,357$ 304,893$ 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, 2024

(128)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR2,820,315$ 2,820,315$ 2,820,315$ -$ RESOURCES (INFLOWS)Licenses and Permits 84,000 84,000 219,843 135,843 Amounts Available for Appropriations 2,904,315 2,904,315 3,040,158 135,843 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay - 2,857,216 55,321 2,801,895 Total Charges to Appropriations - 2,857,216 55,321 2,801,895 BUDGETARY FUND BALANCE - END OF YEAR2,904,315$ 47,099$ 2,984,837$ 2,937,738$ 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, 2024

(129)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR10,957,159$ 10,957,159$ 10,957,159$ -$ RESOURCES (INFLOWS)Licenses and Permits 450,000 450,000 255,055 (194,945) Amounts Available for Appropriations 11,407,159 11,407,159 11,212,214 (194,945) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 33,411 (33,411) Capital Outlay - 9,694,985 191,331 9,503,654 Total Charges to Appropriations - 9,694,985 224,742 9,470,243 BUDGETARY FUND BALANCE - END OF YEAR11,407,159$ 1,712,174$ 10,987,472$ 9,275,298$ 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, 2024

(130)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR50,492$ 50,492$ 50,492$ -$ RESOURCES (INFLOWS)Charges for Services - 125,000 115,233 (9,767) Transfers In 194,486 194,486 - (194,486) Amounts Available for Appropriations 369,978 369,978 165,725 (204,253) CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government - - 580 (580) Development Services 249,469 350,979 217,024 133,955 Capital Outlay - - 579 (579) Transfers Out 71,685 71,685 71,685 - Total Charges to Appropriations 321,154 422,664 289,868 132,796 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR48,824$ (52,686)$ (124,143)$ (71,457)$ 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, 2024

(131)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR927,888$ 927,888$ 927,888$ -$ RESOURCES (INFLOWS)Licenses and Permits 300,000 300,000 119,882 (180,118) Amounts Available for Appropriations 1,227,888 1,227,888 1,047,770 (180,118) BUDGETARY FUND BALANCE - END OF YEAR1,227,888$ 1,227,888$ 1,047,770$ (180,118)$ 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, 2024

(132)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,754,861$ 1,754,861$ 1,754,861$ -$ RESOURCES (INFLOWS)Licenses and Permits 200,000 200,000 612,427 412,427 Amounts Available for Appropriations 1,954,861 1,954,861 2,367,288 412,427 CHARGES TO APPROPRIATIONS (OUTFLOWS)Transfers Out - - 1,595 (1,595) Total Charges to Appropriations - - 1,595 (1,595) BUDGETARY FUND BALANCE - END OF YEAR1,954,861$ 1,954,861$ 2,365,693$ 410,832$ 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, 2024
(133)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 24,565$ 24,565$ 24,565$ -$

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development - - 18,750 (18,750)
Transfers Out 5,279 5,279 24,565 (19,286)
Total Charges to Appropriations 5,279 5,279 43,315 (38,036) BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR 119,096$ 119,096$ (18,750)$ (137,846)$ 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, 2024
(134)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 1,627,518$ 1,627,518$ 1,627,518$ -$

RESOURCES (INFLOWS)
Charges for Services 2,133,000 2,133,000 2,388,126 255,126 Amounts Available for Appropriations 3,760,518 3,760,518 4,015,644 255,126

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Community Development 317,922 320,567 303,000 17,567 Development Services 1,617,835 1,829,491 1,517,566 311,925 Capital Outlay - 1,521,570 668,897 852,673
Transfers Out 598,921 598,921 624,368 (25,447)
Total Charges to Appropriations 2,534,678 4,270,549 3,113,831 1,156,718 BUDGETARY FUND BALANCE - END OF YEAR 1,225,840$ (510,031)$ 901,813$ 1,411,844$ 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, 2024
(135)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
BUDGETARY FUND BALANCE - BEGINNING OF YEAR 284,928$ 284,928$ 284,928$ -$

RESOURCES (INFLOWS)
Fines and Forfeitures 160,000 160,000 96,542 (63,458) Miscellaneous 100,000 100,000 36,483 (63,517)
Amounts Available for Appropriations 544,928 544,928 417,953 (126,975)

CHARGES TO APPROPRIATIONS (OUTFLOWS)
Transfers Out 260,000 260,000 133,025 126,975
Total Charges to Appropriations 260,000 260,000 133,025 126,975 BUDGETARY FUND BALANCE - END OF YEAR 284,928$ 284,928$ 284,928$ -$ 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, 2024

(136)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR AS RESTATED(38,784)$ (38,784)$ (38,784)$ -$ RESOURCES (INFLOWS)Intergovernmental - 480,000 - (480,000) Amounts Available for Appropriations (38,784) 441,216 (38,784) (480,000) CHARGES TO APPROPRIATIONS (OUTFLOWS)Parks, Recreation, and Arts - 586,154 322,045 264,109 Transfers Out - - 3,180 (3,180) Total Charges to Appropriations - 586,154 325,225 260,929 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR(38,784)$ (144,938)$ (364,009)$ (219,071)$ Budgeted Amounts

CITY OF LANCASTER

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

MEASURE H SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024

(137)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR AS RESTATED(216,892)$ (216,892)$ (216,892)$ -$ RESOURCES (INFLOWS)Intergovernmental 3,114,682 3,956,769 2,163,635 (1,793,134) Amounts Available for Appropriations 2,897,790 3,739,877 1,946,743 (1,793,134) CHARGES TO APPROPRIATIONS (OUTFLOWS)Parks, Recreation, and Arts 3,471,447 4,285,724 2,185,316 2,100,408 Transfers Out - - 26,722 (26,722) Total Charges to Appropriations 3,471,447 4,285,724 2,212,038 2,073,686 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR(573,657)$ (545,847)$ (265,295)$ 280,552$ 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, 2024

(138)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(885,360)$ (885,360)$ (885,360)$ -$ RESOURCES (INFLOWS)Intergovernmental 1,460,390 1,460,390 1,859,989 399,599 Transfers In - - 49,595 49,595 Amounts Available for Appropriations 575,030 575,030 1,024,224 449,194 CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 124,871 (124,871) Capital Outlay - 3,293,742 2,140,011 1,153,731 Transfers Out - - 49,306 (49,306) Total Charges to Appropriations - 3,293,742 2,314,188 979,554 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR575,030$ (2,718,712)$ (1,289,964)$ 1,428,748$ 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, 2024

(139)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,775,188$ 1,775,188$ 1,775,188$ -$ RESOURCES (INFLOWS)Licenses and Permits - - 208,154 208,154 Transfers In - - 8,737 8,737 Amounts Available for Appropriations 1,775,188 1,775,188 1,992,079 216,891 CHARGES TO APPROPRIATIONS (OUTFLOWS)Capital Outlay 415,655 1,454,975 276,080 1,178,895 Transfers Out 42,507 42,507 51,149 (8,642) Total Charges to Appropriations 458,162 1,497,482 327,229 1,170,253 BUDGETARY FUND BALANCE - END OF YEAR1,317,026$ 277,706$ 1,664,850$ 1,387,144$ 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, 2024

(140)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,569,190$ 1,569,190$ 1,569,190$ -$ RESOURCES (INFLOWS)Taxes 4,400,000 4,400,000 4,492,009 92,009 Licenses and Permits 272,400 272,400 260,716 (11,684) Miscellaneous 1,000 1,000 103 (897) Amounts Available for Appropriations 6,242,590 6,242,590 6,322,018 79,428 CHARGES TO APPROPRIATIONS (OUTFLOWS)General Government 88,491 88,491 92,366 (3,875) Development Services 3,374,732 3,739,236 3,217,081 522,155 Capital Outlay - 1,041,934 718,044 323,890 Transfers Out 1,540,594 1,540,594 1,540,957 (363) Total Charges to Appropriations 5,003,817 6,410,255 5,568,448 841,807 BUDGETARY FUND BALANCE - END OF YEAR1,238,773$ (167,665)$ 753,570$ 921,235$ 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, 2024

(141)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR6,152$ 6,152$ 6,152$ -$ RESOURCES (INFLOWS)Investment Earnings - - 144 144 Amounts Available for Appropriations6,152 6,152 6,296 144 BUDGETARY FUND BALANCE - END OF YEAR6,152$ 6,152$ 6,296$ 144$ 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, 2024

(142)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR46,543$ 46,543$ 46,543$ -$ CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services 17,783 17,783 - 17,783 Total Charges to Appropriations 17,783 17,783 - 17,783 BUDGETARY FUND BALANCE - END OF YEAR28,760$ 28,760$ 46,543$ 17,783$ 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, 2024

(143)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE (DEFICIT) - BEGINNING OF YEAR(4,324,157)$ (4,324,157)$ (4,324,157)$ -$ RESOURCES (INFLOWS)Intergovernmental 29,863,361 29,863,361 8,846,255 (21,017,106) Investment Earnings 20,500 20,500 90,374 69,874 Transfers In - - 522,871 522,871 Amounts Available for Appropriations 25,559,704 25,559,704 5,135,343 (20,424,361) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services - - 267,050 (267,050) Capital Outlay - 50,156,850 10,315,097 39,841,753 Transfers Out 1,081,420 1,081,420 1,079,849 1,571 Total Charges to Appropriations 1,081,420 51,238,270 11,661,996 39,576,274 BUDGETARY FUND BALANCE (DEFICIT) - END OF YEAR24,478,284$ (25,678,566)$ (6,526,653)$ 19,151,913$ 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, 2024

(144)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR1,259,675$ 1,259,675$ 1,259,675$ -$ RESOURCES (INFLOWS)Intergovernmental 4,313,570 4,313,570 4,182,509 (131,061) Investment Earnings 10,000 10,000 70,393 60,393 Transfers In - - 26,184 26,184 Amounts Available for Appropriations 5,583,245 5,583,245 5,538,761 (44,484) CHARGES TO APPROPRIATIONS (OUTFLOWS)Development Services 343,048 343,048 84,655 258,393 Capital Outlay 2,527,206 2,708,240 1,741,427 966,813 Transfers Out 6,363,906 6,363,906 1,619,773 4,744,133 Total Charges to Appropriations 9,234,160 9,415,194 3,445,855 5,969,339 BUDGETARY FUND BALANCE - END OF YEAR(3,650,915)$ (3,831,949)$ 2,092,906$ 5,924,855$ 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, 2024

(145)
Variance withFinal BudgetPositiveOriginal Final Actual (Negative)BUDGETARY FUND BALANCE - BEGINNING OF YEAR6,692,464$ 6,692,464$ 6,692,464$ -$ RESOURCES (INFLOWS)Charges for Services 5,750,000 5,750,000 6,601,772 851,772 Miscellaneous 78,000 78,000 18,171 (59,829) Amounts Available for Appropriations 12,520,464 12,520,464 13,312,407 791,943 CHARGES TO APPROPRIATIONS (OUTFLOWS)Community Development 115,713 118,621 105,825 12,796 Development Services 2,960,112 6,585,540 5,220,535 1,365,005 Capital Outlay 6,090 6,090 6,090 - Principal Retirement 620,000 620,000 620,000 - Interest and Fiscal Charges 405,607 405,607 352,056 53,551 Transfers Out 346,622 346,622 346,622 - Total Charges to Appropriations 4,454,144 8,082,480 6,651,128 1,431,352 BUDGETARY FUND BALANCE - END OF YEAR8,066,320$ 4,437,984$ 6,661,279$ 2,223,295$ Budgeted Amounts

CITY OF LANCASTER

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2024

(146)

AssessmentDistrict Deposits AD 92-101 CFD 89-1ASSETSPooled Cash and Investments 154,596$ 214,320$ 202$ 23,835$ Receivable:Accounts - 47,232 - - Taxes - 3,420 - - Total Assets 154,596 264,972 202 23,835 LIABILITIESDeferred Revenues - 47,231 - - Deposits Payable - 241,294 - - Total Liabilities - 288,525 - - NET POSITIONRestricted for Bondholders 154,596 (23,553) 202 23,835 Total Net Position 154,596$ (23,553)$ 202$ 23,835$

CITY OF LANCASTER

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS (CONTINUED)
JUNE 30, 2024

(147)

CFD 90-1 CFD 91-1 CFD 91-2 CFD 21-1 TotalASSETSPooled Cash and Investments (207)$ 542$ 42,561$ (250)$ 435,599$ Receivable:Accounts - - - - 47,232 Taxes - - - - 3,420 Total Assets (207) 542 42,561 (250) 486,251 LIABILITIESDeferred Revenues - - - - 47,231 Deposits Payable - - - - 241,294 Total Liabilities - - - - 288,525 NET POSITIONRestricted for Bondholders (207) 542 42,561 (250) 197,726 Total Net Position (207)$ 542$ 42,561$ (250)$ 197,726$

CITY OF LANCASTER

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2024

(148)

AssessmentDistrict Deposits AD 92-101 CFD 89-1ADDITIONSSpecial Assessments or Taxes Collected from Property Owners -$ -$ -$ -$ DEDUCTIONSAdministrative Expenses - 23,553 - 2,185 CHANGE IN NET POSITION- (23,553) - (2,185) Total Net Position (Deficit) - Beginning of Year 154,596 - 202 26,020 TOTAL NET POSITION (DEFICIT) - END OF YEAR154,596$ (23,553)$ 202$ 23,835$

CITY OF LANCASTER

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2024

(149)

CFD 90-1 CFD 91-1 CFD 91-2 CFD 21-1 TotalADDITIONSSpecial Assessments or Taxes Collected from Property Owners -$ -$ 42,561$ -$ 42,561$ DEDUCTIONSAdministrative Expenses - - - 250 25,988 CHANGE IN NET POSITION- - 42,561 (250) 16,573 Total Net Position (Deficit) - Beginning of Year (207) 542 - - 181,153 TOTAL NET POSITION (DEFICIT) - END OF YEAR(207)$ 542$ 42,561$ (250)$ 197,726$

(150)

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(151)

STATISTICAL SECTION

CITY OF LANCASTER

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2024
(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
Financial Trends
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
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
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
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
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, 2024
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities
Net Investment in
Capital Assets 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$ 815,321,635$ Restricted 156,831,806 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 148,823,735 152,508,943 133,027,456 Unrestricted (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 43,270,892 Total Governmental
Activities Net Assets 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$ 991,619,983$ Business-type activities
Net Investment in
Capital Assets (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)$ (5,110,765)$ Unrestricted (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 15,800,896 Total Business-Type
Activities Net Assets (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$ 10,690,131$ Primary Government
Net Investment in
Capital Assets 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$ 810,210,870$ Restricted 156,831,806 148,498,481 146,632,874 143,457,885 153,574,408 211,659,170 141,530,153 148,823,735 152,508,943 133,027,456 Unrestricted (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 59,071,788 Total Primary Government
Net Assets 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$ 1,002,310,114$ *2017 Net Assets Restated
Fiscal Year

CITY OF LANCASTER

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental Activities:

General Government 18,151,158$ 24,202,118$ 8,960,666$ 25,403,881$ 36,559,231$ 34,227,243$ 35,691,615$ 27,689,637$ 39,446,279$ 32,412,932$ Public Safety 26,777,341 26,305,165 28,407,266 29,600,738 30,472,647 31,515,319 32,230,935 35,132,514 39,792,259 47,567,575 Community Development 3,205,562 3,075,464 3,153,141 3,596,731 3,203,719 657,480 592,696 664,521 1,297,964 10,454,150 Parks, Recreation, and Arts 14,096,265 16,934,244 16,693,089 18,330,765 19,055,172 18,323,761 17,820,781 25,614,746 26,856,459 29,566,701 Development Services 54,734,695 50,457,653 69,971,677 54,409,902 53,929,613 53,960,990 50,239,507 65,722,004 89,042,176 85,116,515 Housing and Neighborhood
Revitalization 4,341,667 2,672,073 2,561,473 2,158,452 2,115,890 1,850,333 2,056,358 7,758,697 1,011,720 30,338,926 Interest on Long-Term Debt 180,567 217,001 273,270 793,067 920,559 2,315,735 3,119,743 2,551,057 3,036,813 2,548,299 Total Primary Governmental
Activities Expenses 121,487,255 123,863,718 130,020,582 134,293,536 146,256,831 142,850,861 141,751,635 165,133,176 200,483,670 238,005,098 Business-type activities:

Lancaster Power Authority 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 1,339,619 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 79,779,572 California Choice Energy Authority - - 52,276 2,414,623 4,287,401 5,650,866 6,033,722 7,081,730 7,517,372 4,555,947 Total Business-Type
Activities Expenses 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 85,675,138 Total Primary Government Expenses 125,088,379 146,268,845 165,921,421 172,985,394 189,347,931 190,084,252 196,624,374 225,356,128 276,498,696 323,680,236 Program Revenues (see Schedule 3)
Governmental Activities:

Charges for Services:

General Government 432,988 513,200 639,962 602,044 619,995 139,214 3,335,332 287,009 1,156,517 418,433 Public Safety 818,277 751,611 984,026 1,062,896 1,085,753 853,945 2,525,888 802,251 681,722 681,642 Community Development 550,551 496,533 661,602 634,154 639,536 597,666 430,021 653,198 816,687 303,034 Parks, Recreation and Arts 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 2,935,778 Development Services 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 21,870,288 Housing and Neighborhood
Revitalization 303,541 226,958 229,371 365,977 237,247 1,042,728 290,464 12 3,276 - Operating Grants and Contributions 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 48,104,288 Capital Grants and Contributions 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 19,419,463 Total Governmental Activities
Program Revenues 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 93,732,926 Fiscal Year

CITY OF LANCASTER

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(ACCRUAL BASIS OF ACCOUNTING)
(155)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Business-type activities:

Charges for Services:

Lancaster Power Authority 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$ 1,725,547$ 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 81,950,853 California Choice Energy Authority - - 80,000 1,495,702 4,535,102 5,438,167 5,987,488 7,206,199 8,015,547 5,254,985 Total Business-Type Activities
Program Revenues 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 88,931,385 Total Primary Government
Program Revenues 65,699,692 80,193,208 88,055,324 98,657,075 111,455,712 117,444,994 140,820,999 155,948,439 162,303,706 182,664,311 Governmental Activities (59,335,872) (70,620,908) (80,887,847) (76,448,162) (78,056,651) (75,786,830) (52,600,567) (69,994,828) (116,655,864) (144,272,172) Business-Type Activities: (52,815) 4,545,271 3,021,750 2,119,843 164,432 3,147,572 (3,202,808) 587,139 2,460,874 3,256,247 Net Primary Government
Revenue (Expense) (59,388,687) (66,075,637) (77,866,097) (74,328,319) (77,892,219) (72,639,258) (55,803,375) (69,407,689) (114,194,990) (141,015,925) Other Changes in Net Assets
Governmental Activities:

Taxes
Property Taxes 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 29,116,559 Franchise Taxes 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 11,491,150 Transient Occupancy Taxes 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 2,294,723 Business Llicenses Taxes 983,968 915,740 842,598 932,469 920,998 722,837 1,223,982 1,364,377 855,151 1,489,181 Other Taxes 419,034 428,651 630,705 991,873 885,093 1,279,397 1,315,822 1,027,933 851,184 770,718 Intergovernmental 65,519 64,874 70,376 83,074 77,514 127,902 118,596 186,425 180,915 218,014 Intergovernmental -State
Shared Sales Taxes 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 47,258,659 Investment Earnings 331,645 532,869 465,226 243,124 1,942,204 4,696,743 1,391,387 (1,397,099) 3,977,989 6,536,775 Miscellaneous 1,141,731 1,041,187 2,308,190 3,393,939 10,536,241 4,138,146 1,546,901 9,577,174 14,641,946 2,335,357 Gain on Sale of Land Held
for Resale 2,129,772 1,158,860 443,926 1,283,807 1,220,392 888,441 513,340 801,949 433,995 2,520,183 Transfers 800,000 1,600,000 1,358,064 1,525,000 845,513 893,410 875,850 946,797 926,685 2,132,357 Total Governmental Activities 45,657,576 49,181,115 51,041,477 56,269,028 72,471,872 68,633,724 74,684,205 102,613,378 114,233,140 106,163,676 Business-Type Activities:

Investment Earnings 1,762 6,041 10,109 25,250 48,219 34,247 860 182 313 411,543 Miscellaneous 51,700 173,085 72,454 420,810 2,258,254 2,790,669 551,588 3,273,485 143,999 Transfers (800,000) (1,600,000) (1,358,064) (1,525,000) (845,513) (893,410) (875,850) (946,797) (926,685) (2,132,357) Total Business-Type Activities (746,538) (1,420,874) (1,275,501) (1,078,940) (797,294) 1,399,091 1,915,679 (395,027) 2,347,113 (1,576,815)

CITY OF LANCASTER

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(ACCRUAL BASIS OF ACCOUNTING)
(156)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Extraordinary Gain/(Loss) -$ 11,789,312$ -$ -$ -$ -$ -$ -$ -$ -$ Total Primary Government
Revenues, Contributions,
Extraordinary Items and Transfers 44,911,038 59,549,553 49,765,976 55,190,088 71,674,578 70,032,815 76,599,884 102,218,351 116,580,253 104,586,861 Change in Net Assets
Governmental Activities (13,678,296) (9,650,481) (29,846,370) (20,179,134) (5,584,779) (7,153,106) 22,083,638 32,618,550 (2,422,724) (38,108,496) Business-Type Activities (799,353) 3,124,397 1,746,249 1,040,903 (632,862) 4,546,663 (1,287,129) 192,112 4,807,987 1,679,432 Total Primary Government (14,477,649)$ (6,526,084)$ (28,100,121)$ (19,138,231)$ (6,217,641)$ (2,606,443)$ 20,796,509$ 32,810,662$ 2,385,263$ (36,429,064)$

CITY OF LANCASTER

FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(157)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable 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$ 51,474,037$ Committed - - - - 3,365,000 1,614,733 8,083,847 47,957,898 49,046,805 51,150,088 Assigned 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 25,976,348 Unassigned 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 (14,880,638) Total General Fund 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$ 113,719,835$ All Other Governmental Funds
Nonspendable 47,639$ 138,887$ 302,869$ -$ 1,952$ -$ 114,493$ 29,788$ 174,084$ 169,356$ Restricted 153,298,355 143,175,424 138,738,574 135,604,095 145,720,618 194,765,788 186,902,404 144,389,404 134,580,180 111,881,269 Assigned 17,055 - 60,647.00 60,647 60,647 556,466 1,905,548 1,882,051 - - Unassigned (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) (12,859,932) Total all Other Governmental Funds 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$ 99,190,693$ Explanation of fund balance categories and descriptions can be found in Note 1 - Summary of Significant Accounting Policies; differences in fund balances betweem FY 19/20 & 20/21 are discussed in Management Discussion and Analysis section.

Fiscal Year

CITY OF LANCASTER

CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(158)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes 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$ 72,605,732$ Licenses, Fees, and Permits 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 11,002,764 Intergovernmental 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 96,679,678 Charges for Services 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 13,494,049 Investment Earnings 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 6,295,028 Fines and Forfeitures 1,031,987 958,579 1,076,830 1,248,494 1,296,476 996,310 702,937 974,257 854,519 693,324 Contributions - - 630 35,586 8,033 2,669 8,757 59,454 57,632 20,310 Rental Income 5,748 194,687 155,750 155,750 156,958 128,893 - 25,613 - 229,095 Gain From Sale of Land Held - - - - 30,303 472,883 570,576 433,995 2,448,984 Miscellaneous 2,167,266 2,365,424 5,320,963 6,340,721 5,930,584 6,331,271 7,193,270 9,499,352 12,513,345 2,474,519 Total Revenues 97,795,587$ 95,583,255$ 97,979,456$ 110,586,494$ 132,434,580$ 124,407,013$ 169,175,568$ 195,869,676$ 167,808,520$ 205,943,483$ Expenditures
General Government 15,994,460$ 20,261,382$ 19,648,188$ 21,765,331$ 31,975,792$ 28,610,023$ 31,230,218$ 34,603,620$ 40,690,629$ 27,904,793$ Public Safety 25,019,344 26,299,308 28,401,068 29,429,466 30,290,409 31,325,203 32,319,382 35,083,490 39,778,360 47,214,163 Community Development 2,732,422 2,796,072 2,879,556 3,352,591 2,779,144 236,826 490,242 236,622 871,273 9,911,454 Parks, Recreation and Arts 12,819,404 15,218,338 16,157,838 16,769,802 17,655,903 17,042,667 15,392,513 23,729,690 24,969,678 26,682,605 Development Services 19,678,403 18,634,314 34,626,426 20,337,475 19,389,078 20,176,895 21,898,694 36,449,170 45,115,363 31,927,378 Housing and Neighborhood Revitalization 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 30,338,926 Capital Outlay 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 50,249,725 Debt Service
Principal 549,758 607,293 771,403 1,774,883 2,524,442 3,397,596 3,055,692 2,342,636 4,492,084 3,441,773 Interest 221,672 185,367 293,259 660,933 845,577 2,413,747 3,525,805 2,976,633 3,110,856 2,923,293 Total Expenditures 96,209,708 103,783,286 119,409,719 118,629,826 131,616,930 137,538,444 140,844,322 206,064,530 205,219,548 230,594,110 Excess of Revenues Over (Under)
Expenditures 1,585,879 (8,200,031) (21,430,263) (8,043,332) 817,650 (13,131,431) 28,331,246 (10,194,854) (37,411,028) (24,650,627) Other Financing Sources (Uses)
Sale of Capital Assets - - - - - 526,178 40,457 576,405 4,024,793 113,377 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 43,561 Transfers in 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 26,883,088 Transfers out (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) (24,750,731) Total Other Financing
Sources (Uses) 800,000 1,855,981 16,692,515 1,615,300 16,622,825 57,093,393 916,307 1,585,721 5,840,353 2,289,295 Extraordinary, Special Gain/(Loss) - 9,174,663 - - - - - - - - Net Change in
Fund Balances 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)$ (22,361,332)$ Debt service as a percentage
of noncapital expenditures 0.95% 0.91% 1.00% 2.53% 3.13% 5.53% 5.98% 3.72% 4.75% 3.53% 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, 2024
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(159)
Intergovernmental
Fiscal *Property Transient State Shared Franchise Business Other Year Taxes Occupancy Sales Taxes Measure LC Taxes Licenses Taxes Taxes Total 2015 19,252,156 1,614,404 18,540,150 2,821,855 915,740 428,651 43,572,956 2016 19,468,926 1,866,299 19,498,624 2,926,257 842,598 630,705 45,233,409 2017 20,423,770 2,064,522 20,462,687 4,706,453 932,469 991,873 49,581,774 2018 20,423,770 2,202,452 20,483,067 4,706,453 932,469 991,873 49,740,084 2019 22,583,607 2,211,230 23,611,132 7,637,948 920,998 885,093 57,850,008 2020 24,296,937 1,965,102 21,961,474 7,731,919 1,223,982 1,315,822 58,495,236 2021 26,148,244 2,012,943 26,734,737 5,070,608 7,731,919 729,798 1,010,653 69,438,901 2022 27,184,193 2,709,026 28,325,781 22,625,166 9,261,656 1,364,377 1,027,933 92,498,132 2023 33,007,795 2,676,338 27,547,477 21,682,349 7,451,316 855,151 851,184 94,071,610 2024 29,116,559 2,294,723 26,222,177 21,254,496 11,491,150 1,489,181 770,718 92,639,005 -11.79% -14.26% -4.81% -1.97% 54.22% 74.14% -9.45% -1.52% Change 3,891,236 1,325,300 427,853 (4,039,834) (634,030) 80,466 1,432,605

51.2% 42.1% 41.4% 319.2% 307.2% 62.6% 79.8% 112.6%
*Since 2013 Property Taxes have been substantially less due to dissolution of Lancaster Redevelopment Agency Source: City of Lancaster Finance Department
2015-2024

CITY OF LANCASTER

ASSESSED VALUE AND ESTIMATED ACTUAL

VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(IN THOUSANDS)
(160)
Less: Total Taxable Total
Fiscal Residential Commercial Industrial Other Unsecured Tax-Exempt Assessed Direct Tax Year Property* Property* Property* Property* Property* Property Value Rate* 2014-15 6,875,938 1,151,791 429,440 1,105,203 278,624 (501,969) 9,339,027 0.092970 2015-16 7,366,323 1,272,042 431,603 1,137,342 291,158 (513,024) 9,985,444 0.091940 2016-17 7,772,454 1,293,080 439,480 1,175,301 309,909 (429,860) 10,560,364 0.091220 2017-18 8,248,993 1,331,678 455,985 1,213,136 283,133 (487,736) 11,045,188 0.090230 2018-19 8,849,447 1,396,589 514,693 1,219,625 280,558 (461,721) 11,799,191 0.089460 2019-20 9,457,797 1,444,154 550,237 1,332,867 360,368 (428,683) 12,716,740 0.088530 2020-21 9,778,254 1,426,788 576,248 1,773,175 407,473 (638,594) 13,323,344 0.085786 2021-22 10,463,372 1,408,293 636,430 1,865,415 376,652 (664,045) 14,086,117 0.084892 2022-23 11,334,803 1,451,790 729,968 1,991,840 429,505 (728,380) 15,209,526 0.085840 2023-24 12,109,009 1,519,158 755,059 1,319,416 464,649 (52,911) 16,114,380 0.085340 *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 Source: Los Angeles County Assessor data, Hdl, Coren & Cone the 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, 2024
(161)
Los Antelope Valley Antelope Valley Total City's Share
Fiscal Angeles Union High Elementary Community Direct & of 1% Levy Total Year General County School District School Districts College Water Overlapping(1) Per Prop 13(2) Direct(3) 2015 1.00000% 0.00000% 0.02585% 0.21896% 0.02480% 0.07049% 1.34010% 0.06611% 0.092970 2016 1.00000% 0.00000% 0.02428% 0.21732% 0.02556% 0.07049% 1.33765% 0.06611% 0.091940 2017 1.00000% 0.00000% 0.02474% 0.21889% 0.02560% 0.07049% 1.33972% 0.06611% 0.091220 2018 1.00000% 0.00000% 0.02357% 0.21331% 0.04869% 0.07049% 1.35606% 0.06611% 0.090230 2019 1.00000% 0.00000% 0.02317% 0.20772% 0.04847% 0.07049% 1.34985% 0.06611% 0.089460 2020 1.00000% 0.00000% 0.02187% 0.20734% 0.04722% 0.07049% 1.34692% 0.06611% 0.088530 2021 1.00000% 0.00000% 0.02163% 0.06540% 0.42466% 0.07049% 1.58218% 0.06611% 0.085786 2022 1.00000% 0.00000% 0.02360% 0.20887% 0.04424% 0.07049% 1.34720% 0.06611% 0.085786 2023 1.00000% 0.00000% 0.02289% 0.18306% 0.04060% 0.07049% 1.31704% 0.06611% 0.085840 2024 1.00000% 0.00000% 0.02045% 0.15664% 0.04078% 0.07049% 1.28836% 0.06611% 0.085340 Source: Los Angeles County Auditor 2014/15-2023/24 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, 2024
(162)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Taxpayer Value Rank Value
WestCore Bravo Lancaster LLC 146,072,160$ 1 0.91% Walmart Real Estate Business Trust 54,315,484$ 1 0.57% AG Cordova Park Owner LP 87,815,730 2 0.54% CP Antelope Shops LLC 49,794,429 2 0.53% Rami Darghalli Trust 76,875,513 3 0.48% Thrifty Payless Inc 45,911,250 3 0.49% Walmart Stores Inc 69,834,460 4 0.43% US Industrial Reit II 45,284,000 4 0.48% Granada Villas REI LLC 68,616,621 5 0.43% Kaiser 41,061,198 5 0.43% AG Sienna Heights Owner LP 63,919,303 6 0.40% MGF Cordova Park LP 34,117,900 6 0.36% 2018-3 IH Borrower LP 58,016,360 7 0.36% MK RRP 117 Holston Drive LLC 31,600,000 7 0.33% TA-High Desert LLC 50,727,911 8 0.31% MGP IX Properties LLC 28,375,096 8 0.30% BYD Coach and Bus LLC 50,702,029 9 0.31% Sygma Network Inc 26,721,080 9 0.28% Vereit Real Estate LP 49,378,113 10 0.31% Castleblack Lancaster Owner II LLC 24,483,233 10 0.26% Top Ten Total 721,958,200$ 4.48% 381,663,670$ 4.03% City Total 16,114,379,982 100.00% City Total 9,464,083,477 100.00% Source: Los Angeles County Assessor data, HdL Coren & Cone 2014-152023-24

CITY OF LANCASTER

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(163)
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2015 5,101,745 5,101,745 100% - 5,101,745 100%
2016 6,698,981 6,698,981 100% - 6,698,981 100%
2017 6,205,334 6,205,334 100% - 6,205,334 100%
2018 6,560,915 6,560,915 100% - 6,560,915 100%
2019 7,931,274 7,931,274 100% - 7,931,274 100%
2020 8,272,425 8,272,425 100% - 8,272,425 100%
2021 9,603,394 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%
2024 12,370,275 12,370,275 100% - 12,370,275 100%
Source: City of Lancaster Finance Department
Collected within the
Fiscal 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, 2024
(DOLLARS IN THOUSAND, EXCEPT PER CAPITA)
(164)
*Business-Type
Lease Assessment Activity Total
Fiscal Revenue District Revenue Primary Per
Year Bonds Bonds Bonds Government Capita
2015 - 2,280 24,850 27,130 136.81% 0.17
2016 - 1,370 23,745 25,115 125.87% 0.16
2017 - 15,200 22,140 37,340 195.17% 0.24
2018 - 14,215 22,195 36,410 191.69% 0.23
2019 14,340 14,157 21,735 50,232 254.71% 0.31
2020 14,085 12,630 21,225 47,940 229.77% 0.30
2021 13,820 12,060 20,284 46,164 206.87% 0.27
2022 13,545 11,475 18,328 43,348 193.90% 0.25
2023 13,255 10,870 17,616 41,741 169.75% 0.24
2024 12,950 10,250 17,155 40,355 144.68% 0.23
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Percentage
of Personal
Income

CITY OF LANCASTER

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(165)
Percentage of
General Actual Taxable
Fiscal Obligation Value a of Per
Year Bonds Total Property Capita b
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
2024 - 129,212 129,212 0.8018% 0.75
Notes: Details regarding the outstanding redevelopment debt can be found in the notes to the financial statements. a See Schedule 6 (Exhibit C-1) for property value data. b Population data can be found in Schedule 14 (Exhibit E-1).

General Bonded Debt Outstanding
Redevelopment
Bonds
Tax Allocation

CITY OF LANCASTER

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED JUNE 30, 2024
(166)
Estimated
Share of
Total Estimated Direct and
Debt Percentage Overlapping
Outstanding Applicable Debt
Direct Debt
Direct Borrowings 7,054,871$ 100.00% 7,054,871$
Other Debt:

Streetlight Acquisition Bonds of 2016 10,250,000 100.00% 10,250,000 Public Improvement Project Bonds of 2018 12,950,000 100.00% 12,950,000 Unamortized Bond Premiums 6,212,898 100.00% 6,212,898
Measure M & R Street Improvement 43,870,000 100.00% 43,870,000 Other Long-Term Liabilities 8,020,100 100.00% 8,020,100 Total Direct Debt 88,357,869$
Overlapping Tax and Assessment Debt
Antelope Valley Joint Community College District 422,405,916$ 34.47% 145,615,991 Antelope Valley Union High School District 23,149,873 39.07% 9,043,729 Eastside Union School District 14,745,000 63.99% 9,435,768 Lancaster School District 63,464,397 97.54% 61,905,077 Westside Union School District 35,525,600 29.47% 10,467,973 Westside Union School District Community Facilities Districts 20,974,389 100.00% 20,974,389 City of Lancaster School District Community Facilities District No. 2004-1 9,505,000 100.00% 9,505,000 City of Lancaster Lighting Maintenance District 10,250,000 100.00% 10,250,000 California Statewide Community Development Authority Assessment Districts 6,070,000 100.00% 6,070,000 Total Overlapping Tax And Assessment Debt 283,267,927
Total Direct And Overlapping Governmental Funds Debt 371,625,796$ City Assessed Valuation 16,195,500,834$
Incremental Value 120,779,000$
Total Assessed Valuation 16,316,279,834$
Debt to Assessed Valuation Ratios:

Direct Debt 0.542%
Overlapping and Assessment Debt 1.736%
Total Direct and Overlapping Governmental Funds Debt 2.278% Notes:

Source: HdL Coren & Cone, Los Angeles Co Assessor & Auditor Combined 2020/21 Lien Date Tax Rolls, City of Lancaster Finance Department Overlapping 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, 2024
(DOLLARS IN THOUSANDS)
(167)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Assessed Valuation 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$ 16,195,500$ Debt Limit (3.75% of Gross AV) 350,214 374,454 396,014 414,195 442,470 476,878 499,625 528,229 570,357 607,331 Total Net Debt Applicable to Limit - - - - - - - - - - Legal Debt Margin 350,214$ 374,454$ 396,014$ 414,195$ 442,470$ 476,878$ 499,625$ 528,229$ 570,357$ 607,331$ Total Net Debt Applicable
to the Limit as a Percentage
of Debt Limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Source: Los Angeles County Assessor data, HdL Coren & Cone Fiscal Year

CITY OF LANCASTER

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(DOLLARS IN THOUSANDS)
(168)
Property
Fiscal Tax
Year Increment Principal Interest Coverage
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
2024 13,002 10,095 5,057 0.86
Notes: Details regarding the city's outstanding redevelopment debt can be found in the notes to the financial statements.

Debt Service
Redevelopment Tax Allocation Bonds

CITY OF LANCASTER

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
YEAR ENDED JUNE 30, 2024
(169)
Calendar
Year Population
Personal income (in
Thousands)
Per Capita
Personal Income
Unemployment
Rate Median Age
% of Pop 25+
with High
School Degree
% of Pop 25+
with Bachelor's
Degree
2014 159,956 $3,171,927 $19,830 9.20% 32.3 79.80% 15.70% 2015 157,094 $3,134,596 $19,953 7.50% 32.2 80.20% 15.40% 2016 157,820 $3,019,475 $19,132 5.90% 31.7 81.40% 15.10% 2017 161,485 $3,067,258 $18,994 5.10% 31.8 81.40% 15.50% 2018 161,604 $3,187,146 $19,721 6.60% 32.4 82.30% 16.00% 2019 161,699 $3,373,741 $20,864 6.40% 32.4 82.00% 16.20% 2020 171,674 $3,830,805 $22,315 5.00% 32.6 82.60% 17.60% 2021 171,674 $3,838,000 $22,356 6.50% 32.94 82.60% 10.39% 2022 173,376 $4,263,255 $24,589 7.30% 33.3 81.70% 19.10% 2023 172,631 $4,815,047 $27,892 6.70% 33.6 81.20% 19.40% Source: Los Angeles County Assessor data, HdL Coren & Cone Utilized most recent available information

CITY OF LANCASTER
TOP 10 PRINCIPAL EMPLOYERS

CURRENT CALENDAR YEAR AND TEN YEARS PRIOR
YEAR ENDED JUNE 30, 2024
(170)
Percentage Percentage
Estimated of Total Valley Estimated of Total Valley
Employer Employees Rank Employment Employer Employees Rank Employment Edwards Air Force Base 11,500 1 17.22% Edwards Air Force Base 10,647 1 13.88% Northrop Grumman 8,300 2 12.43% China Lake Navel Weapons 6,690 2 8.72% China Lake NWC 6,520 3 4.49% County of Los Angeles 3,743 3 4.88% Palmdale School District 3,000 4 4.04% Lockheed Martin 3,700 4 4.82% Antelope Valley Hospital Medical Center 2,700 5 9.76% Antelope Valley Hospital 2,300 5 3.00% Antelope Valley Union Highschool District 2,300 6 1.70% Northrop Grumman 2,100 6 2.74% Lancaster School District 1,136 7 3.44% Walmart Stores (5) 1,922 7 2.51% Antelope Valley College 850 8 1.27% California Correctional Institute 1,915 8 2.50% Trader Joe's Distribution Center 800 9 1.20% Antelope Valley Mall 1,800 9 2.35% Ride.Co (formerly BYD) 750 10 1.12% Palmdale School District 1,792 10 2.34% TOTAL Employment 66,800 56.67% 76,690 47.74%
Source: City of Lancaster Economic Development: City of Lancaster ACFR FY 2014-2015 Notes: 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's economic region and covers 3,514.2 square miles of area and includes Lancaster, Palmdale, Tehachapi, Mojave, Edwards AFB, and Ridgecrest.

Most recent information available
2024 2015

CITY OF LANCASTER

FULL-TIME-EQUIVALENT CITY GOVERNMENT

EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2024
(171)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General Government
Administrative Services 6.00 3.00 1.00 13.00 16.00 15.00 12.00 - - - Air Quality Management District - - - - - - - 6.00 6.00 7.00 City Clerk 2.00 3.00 3.00 3.00 3.00 3.00 3.00 6.00 6.00 5.00 City Manager 10.25 11.75 12.75 9.75 8.00 10.00 9.00 10.00 10.00 12.00 Communications - - - - - - - 4.00 4.00 5.00
Community Development - - - - - - - - 12.00 27.00 Economic Development, Housing, & Film 3.00 4.00 4.00 5.00 2.00 23.00 - 10.00 13.00 Finance & Information Technology 24.00 25.00 25.00 19.00 18.00 17.00 25.00 25.00 25.00 Housing and Neighborhood Revitalization 19.00 20.00 20.00 19.00 21.00 17.00 17.00 - - - Human Resources 5.00 4.00 6.00 7.00 7.00 7.00 10.00 10.00 10.00 11.00 Planning, Building & Safety, & Energy - - - - - - - - 17.00 - Redevelopment - - - - - - - - - -
City Attorney 1.00 1.00 2.00 2.00 2.00 - - - - - Development Services 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 Arts 53.00 45.00 45.00 45.00 47.00 45.00 51.00 53.00 53.00 55.00 Public Safety 13.00 12.00 12.00 13.00 11.00 12.00 26.00 50.00 50.00 46.00 Public Works - - - - - - - - 95.00 104.00
Less vacancies filled by internal recruitments (8.00) (22.00) (18.75) (19.00) (8.00) - - - - - Total 252.25 245.75 251.00 245.75 255.00 249.00 256.00 298.00 298.00 310.00 Year over year 2.00 (6.50) 5.25 (5.25) 9.25 (6.00) 7.00 42.00 - 12.00 Source: City Human Resources Department
Note: The Lancaster Redevelopment Agency was dissolved according to ABx1 26 which was signed into law June 29, 2011.

Note: The City went through a reorganization in 2021 resulting in ACS being disolved and divisions being absorbed by various departments

CITY OF LANCASTER

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
YEAR ENDED JUNE 30, 2024
(172)
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General government
City Hall 1 1 1 1 1 1 1 1 1 1
Annex/Record Center - - - - - - - - - -
Antelope Valley UHSD Building - - - - - - - - - 1 Community Development
Brierwood Mobile Home Park - - - - - - - - - - Desert Sands Mobile Home Park - - - - - - - - - - Development Services
Maintenance Yard - Modular Office Bldg. 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Office/Warehouse 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Maintenance Garage 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Canopy 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - Storage Bldg 4 3 3 3 3 3 3 3 3 3 Maintenance Yard - Wash Bay 1 1 1 1 1 1 1 1 1 1 Maintenance Yard - HazMat Storage Bldg 1 1 1 1 1 1 1 1 1 1 Streets (miles) 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 signals 139 147 145 153 153 141 143 143 143 145 Street Signs 26,400 26,412 26,472 26,759 38,000 38,000 38,000 38,000 38,000 38,000 Fleet Vehicles 318 304 322 320 318 321 321 318 341 404 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 (LF 44,883 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 Manholes 9,188 9,042 8,966 8,975 8,977 9,073 9,106 9,130 9,276 9,300 Sewer Lift Station 1 1 1 1 1 1 1 1 1 1 Drainage Lift Station - - - - - - - 13 14 13 Recycled Water Pump Station - - - - - - - - 2 2 Parks, Recreation and Arts
Acreage 538 538 538 538 538 558 558 558 558 558 Developed park sites 14 14 14 14 14 14 14 14 14 14 Pools 2 2 2 2 2 2 2 2 2 2
Big 8 Tournament Baseball complex 1 1 1 1 1 1 1 1 1 1 Batting Cage Facility 1 1 1 1 1 1 1 1 1 1 Soccer complex 1 1 1 1 1 1 1 1 1 1
Community/Activity Centers 8 8 8 8 8 8 8 8 8 8 Cedar Center 1 1 1 1 1 1 1 1 1 1
Prime Desert Woodlands Preserve/Nature Cntr 1 1 1 1 1 1 1 1 1 1 Municipal Baseball Stadium 1 1 1 1 1 1 1 1 1 1 Performing Arts Center 1 1 1 1 1 1 1 1 1 1 Museum and Art Gallery 1 1 1 1 1 1 1 1 1 1 Western Hotel (historic site) 1 1 1 1 1 1 1 1 1 1 Metrolink Station 1 1 1 1 1 1 1 1 1 1 Park and Ride Lots 8 8 8 8 8 8 8 8 8 8 Sources: Various city departments.

Fiscal Year
*Estimated figures