Transit Enterprise Fund
of the City of Santa Clarita
Santa Clarita, California
Independent Auditor’s Reports
and Financial Statements
For the Year Ended June 30, 2025
Transit Enterprise Fund of the City of Santa Clarita
For the Year Ended June 30, 2025
Table of Contents
i
Page
Independent Auditor’s Reports:
Report on the Audit of the Financial Statements ............................................................................................... 1
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................... 5
Financial Statements:
Statement of Net Position ..................................................................................................... .................................. 9
Statement of Revenues, Expenses and Changes in Fund Net Position ................................................................. 10
Statement of Cash Flows ....................................................................................................................................... 11
Notes to the Financial Statements ......................................................................................................................... 13
Required Supplementary Information (Unaudited):
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios .............................................. 30
Schedule of Contributions – Pensions ................................................................................................................... 32
Schedule of Proportionate Share of the Net Other Postemployment Benefits Liability and Related Ratios ............................................................................................................. 34
Schedule of Contributions – Other Postemployment Benefits .............................................................................. 36
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Transit Enterprise Fund (the “Transit Fund”) of the City of Santa Clarita, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referre d to above present fairly, in all material respects, the financial position of the Transit Fund as of June 30, 2025, and the changes in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accept ed 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 (“ Government Auditing Standards ”). Our responsibilities under those standards are further described in the Auditor’s 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 opinion.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Transit Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2025, the changes in its financial position, or where applicable, its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United Stat es 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.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
2 Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
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, fo rgery, 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 t hose 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 purpo se of expressing an opinion on the effectiveness of the 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.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United Stat es of America require that the Schedule of Proportionate Share of the Net Pension Liability, the Schedule of Contribut ions – Pensions, the Schedule of Proportionate Share of the Net Other Postemployment Benefits (“OPEB”) Li ability, and the Schedule of Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management a nd, although not a part of the financial st atements, is required by the Governmental Accounting Standards Board who considers it to be an essentia l part of financial reporting for placing the financial statements in an appropriate operationa l, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance w ith GAAS, which consisted of inquiries of management about the methods of preparing the information and compar ing the information for cons istency with management’s responses to our inquiries, the financial statements, and othe r knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the info rmation because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has omitted the management ’s discussion and analysis that accoun ting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financia l reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our repor t dated December 12, 2025, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r 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.
Santa Ana, California
December 12, 2025
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
REPORT ON INT
ERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report
To the Honor
able Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“ Government Auditing Standards”), the financial statements of the Transit Enterprise Fund (the “Transit Fund”), of the City of Santa Clarita, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, and have issued our report thereon dated December 12, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statem ents, we considered the City’s internal control over the Transit Fund’s financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of defi ciencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financ ial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
To the Honorable Mayor and the Members of City Council
of the City of Santa Clarita
Santa Clarita, California
6 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Transit Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct a nd material effect on the fina ncial statements. However, providing an opinion on compliance with those provisions w as not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Santa Ana, California
December 12, 2025
FINANCIAL STATEMENTS
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8 ASSETS:
Current assets:
Pooled cash and investments 28,106,638$
Interest receivable 169,318
Due from other governments 4,120,319
Prepaid items 35,289
Total current assets 32,431,564
Noncurrent assets:
Net other postemployment benefits asset 142,638
Capital assets:
Nondepreciable assets 15,487,638
Depreciable assets, net 65,535,422
Total capital assets 81,023,060
Total noncurrent assets 81,165,698
Total assets 113,597,262
DEFERRED OUTFLOWS OF RESOURCES:
Pension related 769,582
Other postemployment benefits related 173,407
Total deferred outflows of resources 942,989
LIABILITIES:
Current liabilities:
Accounts payable 7,070,129
Accrued payroll 33,346
Compensated absences - due within one year 143,836
Total current liabilities 7,247,311
Noncurrent liabilities:
Compensated absences - due in more than one year 77,468 Net pension liability 1,363,600
Total noncurrent liabilities 1,441,068
Total liabilities 8,688,379
DEFERRED INFLOWS OF RESOURCES:
Pension related 29,708
Other postemployment benefits related 394,121
Total deferred inflows of resources 423,829
NET POSITION:
Investment in capital assets 81,023,060
Unrestricted 24,404,983
Total net position 105,428,043$
June 30, 2025
Statement of Net Position
Transit Enterprise Fund of the City of Santa Clarita
See accompanying Notes to the Financial Statements.
9 OPERATING REVENUES:
Metrolink and EZ pass revenues 87,269$
Fixed-route passenger fares 1,825,576
Dial-A-Ride passenger fares 91,762
County of Los Angeles operating assistance 1,931,729
Specialized transit services 2,419,822
Miscellaneous revenues 1,247,679
Total operating revenues 7,603,837
OPERATING EXPENSES:
Salaries and benefits 1,757,304
Administrative services 1,481,849
Contract transportation services 24,932,555
FTA funded non-capitalized projects 875,983
Insurance 182,694
Supplies, utilities and other 3,105,632
Depreciation 6,849,764
Total operating expenses 39,185,781
OPERATING (LOSS) (31,581,944)
NONOPERATING REVENUES:
Proposition A Discretionary 4,491,505
Proposition A Specialized Transportation 1,465,155
Proposition C Expansion 228,045
Proposition C BSIP 59,193
Proposition C Transit Mitigation 29,082
Proposition C Security Allocation 391,612
Measure R Bus Operations 2,345,362
Measure M Bus Operations 2,336,279
SB1 State Transportation Assistance 853,867
CARES Act 11,729,461
Investment income 1,285,375
Gain on sale of capital assets 59,419
Total nonoperating revenues 25,274,355
INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (6,307,589)
CAPITAL CONTRIBUTIONS:
Federal Transit Administration capital grants 3,840,460 Proposition C MOSIP 229,588
Measure M Regional 158,934
Total contributions 4,228,982
TRANSFERS:
Transfers in from the City 5,000,000
Transfers out to the City (867,272)
Total transfers 4,132,728
Change in net position 2,054,121
NET POSITION:
Beginning of year, as previously reported 103,463,088
Change in accounting principle (89,166)
Beginning of year, as restated (Note 10) 103,373,922
End of year 105,428,043$
For the Year Ended June 30, 2025
Statement of Revenues, Expenses and Change in Fund Net Position Transit Enterprise Fund of the City of Santa Clarita
See accompanying Notes to the Financial Statements.
10 CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users 7,616,503$
Cash payments to suppliers for goods and services (27,751,700) Cash payments to employees (1,733,823)
Net cash (used in) operating activities (21,869,020)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers out to the City (867,272)
Transfers in from the City 5,000,000
Federal and state funding received 22,464,528
Net cash provided by noncapital financing activities 26,597,256 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital contributions received 4,228,982
Acquisition of capital assets (3,338,479)
Proceeds from sale of capital assets 59,419
Net cash provided by capital and related financing activities 949,922 CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 1,210,192
Net cash provided by investing activities 1,210,192
Net change in cash and cash equivalents 6,888,350
CASH AND CASH EQUIVALENTS:
Beginning of year 21,218,288
End of year 28,106,638$
RECONCILIATION OF OPERATING (LOSS) TO NET CASH
(USED IN) OPERATING ACTIVITIES:
Operating (loss) (31,581,944)$
Adjustments to reconcile operating (loss) to net cash
(used in) operating activities:
Depreciation 6,849,764
Changes in operating assets, deferred outflows of resources, liabilities, and deferred inflows of resources:
(Increase) decrease in accounts receivable 12,666
(Increase) decrease in prepaid items (20,430)
Increase (decrease) in accounts payable 2,758,277
Increase (decrease) in accrued payroll 3,470
Increase (decrease) in compensated absences 13,819
Increase (decrease) in pension and pension related deferred outflows and inflows of resources 161,333 Increase (decrease) in OPEB and OPEB related deferred outflows and inflows of resources (65,975) Net cash (used in) o
perating activities (21,869,020)$
For the Year Ended June 30, 2025
Statement of Cash Flows
Transit Enterprise Fund of the City of Santa Clarita
See accompanying Notes to the Financial Statements.
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12 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements
For the Year Ended June 30, 2025
13 Note 1 – Summary of Significant Accounting Policies
A. Description of the Financial Reporting Entity
The financial statements of the Transit Enterprise Fund (the “Transit Fund”) of the City of Santa Clarita, California (the “City”) are intended to present the financial position and results of the bus line services operation. The financial statements of the Transit Fund are included as a business-t ype (enterprise fund) activity in the basic financial statements of the City. The financial statements were prepared from only the accounts of the Fund. Accordingly, the financial statements do not purport to, and do not, presen t fairly the financial position of the City and changes in financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America.
B. Measurement Focus, Basis of Accounting and Financial Statements Presentation
The accounting policies of the Fund are in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to propriet ary activities of governmental units. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing accounting and financial reporting principles.
The financial statements of the Tran sit Fund include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows.
The financial statements are prepared using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses, and changes in fund net position presents increases (revenues) and decreases (expenses) in total net position. Under th e accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recorded in the period in which the liability is incurred.
Operating revenues and expenses result from the operating and maintenance of the local public transit services. The operating revenues consist of only charges to customers for the service provided (bus fares). Operating expenses include the costs of providing these services, administrativ e expenses and depreciation expense. All revenues and expenses not meeting these definitions, and which are not capital in nature are reported as non-operating revenues and expenses.
The Transit Fund recognizes assets of non-exchange transa ctions in the period when the underlying transaction occurs, when an enforceable legal clai m has arisen, or when all eligibility requirements are met. Non-exchange transactions occur when the Fund receives value from anothe r party without giving equal or nearly equal value in return. Various intergovernmental revenues and most donations are examples of non-exchange transactions. Under the terms of grant agreements, the Fund has an enforceable claim with other governmental agencies when specific program expenses are incurred. The Fund has an enforceable claim to local funding allocations when the allocations are determined by the other governmental agencies on an annual basis.
C. Cash and Cash Equivalents
The Transit Fund’s cash balance was pooled with various other City funds for deposit and investment purposes.
The City’s treasury is responsible fo r the cash management of the Transit Fund’s cash balance. Cash on hand, demand deposits, and short-term investme nts with original maturity of three months or less from the date of acquisition, and the Transit Fund’s participation in the C ity investment pool are considered to be cash and cash equivalents. Each City fund owns a share of pooled cash and investments and interest income was apportioned based on its average month-end cash balances in proportion to the total of the pooled cash and investments.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
14 Note 1 – Summary of Significant Accounting Policies (Continued)
D. Grants
Grant revenues and receivables are recorded when earned on grants that have been approved and funded by the grantor, and when eligibility require ments for the grant have been met. Grant sources include Federal Transit Administration, State of California, and Los Angeles Metropolitan Transportation Authority.
E. Administrative Services
Service costs include contractual, professional, and legal services.
F. Prepaids Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements.
G. Capital Assets
Capital assets include land, site impr ovements, buildings and improvements, and vehicles and equipment. Capital assets are defined by the City as assets with an initial co st of more than $10,000 ( $25,000 for site improvements and building improvements) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance a nd repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Site improvements 5 to 50
Building and improvements 5 to 50
Equipment 5 to 25
H. Deferred Outflows and Inflows of Resources
The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.
Deferred Outflows of Resources represent a consumption of net assets that applies to future periods. The Transit Fund reports pension contribution after measurement date, deferred loss relate d to pension and other postemployment benefits in this category.
Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods. The Transit Fund reports deferred gain related to pension and other postemployment benefits in this category.
I. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and comp time (compensated absences). This accumulation is recorded as an expense and liability of th e Transit Fund in the fiscal year earned.
The outstanding balance as of June 30, 2025 was $221,304, of which, $143,836 was considered due within one year, and $77,488 was considered due in more than one year.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
15 Note 1 – Summary of Significant Accounting Policies (Continued)
J. Pensions
The Transit Fund reports a proportion of the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, of the collective net pension liability of the City of Santa Clarita. All amounts and disclosures are presented on a cost-sharing perspective where the Transit Fund is a participant in the City’s plan. For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and pension expense, information a bout the fiduciary net position of the California Public Employees Retirement System (CalPERS) plan and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For th is purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pens ion expense, information about the fiducia ry net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period: July 1, 2023 to June 30, 2024
Gains and losses related to changes in total pension liab ility and fiduciary net position are recognized in pension expense systematically over time. The first amortized am ounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be r ecognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactiv e, and retired) as of the beginning of the measurement period.
K. Other Post-Employment Benefits (“OPEB”)
For purposes of measuring the net OPEB asset, deferred out flows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.
For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that th e reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date: June 30, 2024
Measurement Date: June 30, 2025
Measurement Period: July 1, 2024 to June 30, 2025
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
16 Note 1 – Summary of Significant Accounting Policies (Continued)
K. Other Post-Employment Benefits (“OPEB”) (Continued)
Gains and losses related to changes in total OPEB liab ility are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The gain and loss are amortized straight-line over the average expected remaining service lives of all members that are provided w ith benefits (active, inactiv e, and retired) as of the beginning of the measurement period.
L. Net Position
Net position represents the difference between assets and deferred outflows, and liabi lities and deferred inflows, and is classified into two categories:
Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation.
Unrestricted – This amount represents the residual of amounts not classified in investme nt in capital assets and represents the net position available for the Transit Fund.
When an expense is incurred for purpos es for which both restricted and unrestricted resources are available, the Transit Fund’s policy is to apply restricted resources first.
M. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect th e reported amounts in the financial statements and accompanying notes. Actual results could differ from these estimates.
N. Implementation of New Pronouncements
Effective in the current fiscal year:
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences . The objective of this Statement is to better meet the inform ation needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effec tive for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Implementation of this Statement resulted in a restatement of the beginning net position as of July 1, 2024, as presented in Note 10.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
17 Note 2 – Cash and Cash Equivalent
The Transit Fund’s share of the City’s cash and investment at June 30, 2025 was in the amount of $28,106,638.
Cash is deposited in the City’s internal investment pool, which is reported at amortized cost. The Transit Fund does not own specifically identifiable securities in the City’s pool. Interest income is allocated based on average cash balances.
Investment policies and associated risk factors applicable to the Transit Fund ar e those of the City and are included in the City’s basic financial statements. Please refer to the City’s Annual Comprehensive Financial Report for related disclosures for cash and investments.
Note 3 – Due From Other Governments
Due from other governments consists of the following at June 30, 2025:
Agency Amount
Los Angeles County 1,369,815 $
Federal Government 344,758
Federal Transit Administrator 1,538,230
Other Agencies 867,516
Total 4,120,319$
Due from other governments relate to various program support revenues received from other governments in support of transit operations and programs.
Note 4 – Capital Assets
Changes in capital assets of the Fund at June 30, 2025, consisted of the following:
Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated:
Land and right of way 15,087,880 $ - $ - $ 15,087,880$ Construction in progress 233,090 166,668 - 399,758 Total capital assets, not being depreciated 15,320,970 166,668 - 15,487,638 Capital assets, being depreciated:
Site improvement 21,361,242 121,650 - 21,482,892 Building improvements 46,675,637 - - 46,675,637 Equipment 70,768,181 3,050,161 (4,500,279) 69,318,063 Total capital assets, being depreciated 138,805,060 3,171,811 (4,500,279) 137,476,592 Less accumulated depreciation for:
Site improvement (7,374,139) (887,050) - (8,261,189) Building improvements (18,461,203) (1,024,103) - (19,485,306) Equipment (43,756,343) (4,938,611) 4,500,279 (44,194,675) Total accumulated depreciation (69,591,685) (6,849,764) 4,500,279 (71,941,170) Total capital assets, being depreciated, net 69,213,375 (3,677,953) - 65,535,422 Total capital assets, net 84,534,345$ (3,511,285) $ - $ 81,023,060$
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
18 Note 5 – Pension Plan
A. General Information about the Pension Plan
Plan Description
All qualified permanent, probationary , and some PTS employees are eligible to participate in the City’s Miscellaneous Pension Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employe rs. The employees are participants in the Miscellaneous Plan of the City. For financial reporting purposes, the Tr ansit Fund reports a proportio nate share of the City’s collective net pension liability, pension expense, and deferred inflows and outflows of resources. Accordingly, the disclosures and required supplementary information have been reported for the Transit Fund as a cost sharing participant. Benefit provisions under the Plan are establis hed by State statute and City resolution. CalPERS issues publicly available reports that include a full descriptio n of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
The Plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:
Tier 1 Tier 2 Tier 3
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-60 52-62
Required employee contribution rates 8.000% 7.000% 7.250% Required employer contribution during measurement period 9.820% 9.820% 9.820% Applies to: Employees hired Employees hired between Employees hired before April 9, 2011 * April 9, 2011 and January 1, 2013 or December 31, 2012 or later *
those hired January 1,
2013, or later , who
have been a classic
CalPERS member with
a public agency or in
a classic reciprocal
Plan within the last
6 months *
* Those hired as part seasonal (PTS) who later convert to regular full time will qualify for Tier 1, 2, or 3 depending on their conversion date and status when hired.
Miscellaneous
Contributions
Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual b asis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determin ed rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year. The employer is required to contribute the difference between the actuarially determined rate and the contri bution rates of employees. The expense associated with contributions for the Transit Fund employees is charged to payroll at the required rates previously noted.
Contributions made to pension plan by the Transit Fund for the year ended June 30, 2025 were $272,765.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
19 Note 5 – Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2023 valuation for the C ity’s Miscellaneous Plan was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost M ethod
Actuarial Assumptions:
Discount Rates
Inflation
Salary Increases
Morta l i t
y Rate Table1
Post Retirement Benefit Increase
1 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 15 years of projected 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.
Entry Age Normal
Derived using CalPERS's Membership Data for all Funds.
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
6.90%
2.300%
Varies by Entry Age and Service
Change of Assumption
There were no assumption changes in 2024.
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 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 year s using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
20 Note 5 – Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:
Asset Class1
Assumed Asset
Allocation Real Return 1, 2
Global Equity Cap-weighted 30.00% 4.54%
Global Equity Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Private Debt 5.00% 3.57%
Emerging Market Sovereign Bonds 5.00% 2.48%
High Yield Bonds 5.00% 2.27%
Investment Grade Corporates 10.00% 1.56%
Mortgage-backed Securities 5.00% 0.50%
Treasuries 5.00% 0.27%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on 2021 Asset Liability Management Study.
Discount Rate
The discount rate used to measure the total pension liab ility was 6.90 percent for the Plan. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the employer’s contributions w ill be made at statutorily required rates, actuarially determined. Based on those assumptions, each pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of curre nt active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of pr ojected benefit payments to determine the total pension liability.
Proportionate Share of Net Pension Liability and Pension Expense
The following table shows the Transit Fund’s proportionate share of the risk pool collective net pension liability over the measurement period:
Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Valuation Date) 10,015,303 $ 8,532,708 $ 1,482,595 $ Balance at June 30, 2024 (Measurement Date) 10,802,387 9,438,787 1,363,600 Net changes during 2023-24 787,084 $ 906,079 $ (118,995) $ Increase (Decrease)
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
21 Note 5 – Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued)
The Transit Fund’s proportion of the net pension liability (asset) was based on actual contributions paid by the Transit Fund in relation to the total City’s contribution paid for the Miscellaneous Plan, as determined by the City.
The Transit Fund’s proportion of the net pension liability was as follows:
Measurement Date
June 30, 2023 3.51435%
June 30, 2024 3.51435%
Change - Increase (Decrease) 0.00000%
Sensitivity of the Transit Fund’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the Transit Fund’s proportionate shar e of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Transit Fund’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage poi nt lower or 1-percentage point higher than the current rate:
Discount Rate Current Discount Discount Rate
M easurement Date - 1% (5.90%) Rate (6.90%) + 1% (7.90%) June 30, 2023 2,995,651$ 1,363,600 $ 35,761 $ Plan's Net Pension L iability/(Asset)
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.
Pension Expense and Deferred Outflows and Inflows of Resources
For the year ended June 30, 2025, the Transit Fund recognized pension expense of $434,192.
At measurement date June 30, 2024, the Transit Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after the measurement date 272,765 $ - $ Difference between expected and actual experience 238,523 (29,708) Changes in assumption 127,381 -
Net difference between projected and actual earning on
pension plan investments 130,913 -
Total 769,582 $ (29,708) $
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
22 Note 5 – Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Pension Expense and Deferred Outflows and Inflows of Resources (Continued)
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for miscellaneous plan for the 2023-24 measurement period is 4.4 years, which was obtained by dividing the total service years of 5,887 (the sum of remaining service lifetimes of the activ e employees) by 1,338 (the total number of participants:
active, inactive, and retired).
$272,765 deferred outflows of resources re lated to pensions resulting from th e Transit Fund’s contributions made subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2026. Other amounts reported as de ferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement Perio d
Ending June 30, Miscellaneous Plan
2025 145,477 $
2026 324,955
2027 24,280
2028 (27,603)
467,109$
Deferred Outflows/(Inflows) of Resources
Note 6 – Other Post-Employment Benefits (“OPEB”)
A. General Information about the OPEB Plan
Plan Description
The City has elected through resolution to provide healthcare benefits as a single employer plan to retirees, spouses, and eligible dependents of the City. This plan provid es post-employment medical insu rance benefits through the CalPERS Health Plan (the “Plan”). Accordingly, a ll amounts and disclosures are presented on a cost-sharing perspective where the Transit Fund is a participant in th e City’s plan. Additional details are provided on the plan within the City’s ACFR.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
23 Note 6 – Other Post-Employment Benefits (OPEB) (Continued)
A. General Information about the OPEB Plan (Continued)
Benefits Provided
At retirement, the City contributes a flat monthly rate of $158 for those employees who retire under the PERS retirement system, subscribe to the PERS Health Insurance System, and have at least five years of CalPERS service, in accordance with Government Code. This is a perpetual benefit which is available to all PERS retirees including eligible dependents of deceased retirees. In addition, the City also contributes up to $1,271 to the monthly premium for health insurance for various employee groups, depending on hire date, total years of service to the City, and the applicable employee bargaining unit. City employees who have a service retirement from the City at age 50 with five or more years of City service are eligible to r eceive post-employment medical benefits. Employees who have a disability retirement are also eligible. The benefit for employees hired before January 1, 2008 is up to $1,271 per month. No minimum years of service were required for the unrepresented employees hired before January 1, 2008 and retired before January 1, 2012 and represented employees hired before January 1, 2008 and retired after January 1, 2012 and before January 1, 2014. For employees hired before Ja nuary 1, 2008 the following vesting applies:
Years of Service Vested Percentage
0 to 4 years 0%
5 to 9 years 50%
10 to 14 years 75%
15 years and greater 100%
Funding Policy
Please refer to the City’s Annual Comprehensive Financial Report for details related to the funding policy.
Contributions
The plan and its contributions are established by memo randums of understanding with the applicable employee bargaining units and may be amende d by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2025, the Transit Funds proportionate share of cash contribution was $0 to the Plan and the estimated implied subsidy was in the amount of $8,616, resulting in total contribution of $8,616.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
24 Note 6 – Other Post-Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
Actuarial Assumptions
The total OPEB liability in the June 30, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost Method
Actuarial Assumptions:
Actuarial Valuation Date
Contribution Policy
Discount Rate and Long-Term Expected Rate
of Return
Inflation
Mortality, Retirement, Disability, Termination
Mortality Improvement
Salary Increases
M edical Trend
PE MHCA Mi ni m um Inc re a se s
Participation at Retirement
Waived Retirees Reelection 5% re-elect at 65
Cap Increase
Post-retirement mortality projected fully generational with Scale MP-2021
Aggregate - 2.75% annually
Non-Medicare - 7.90% for 20266, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of
3.45% in 2076
3.50% annually
Hired < 1/1/08 - 95%
Hired > 1/1/08 - 60%
Medical trend for EE+1 cap
Entry Age Normal
6.00% at June 30, 2025 and June 30, 2024
Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
2.50% annually
CalPERS 2000-2019 Experience Study
Pre-fund cash benefit ADC with PARS Balanced Fund
Implied subsidy benefit on pay-as-you-go basis
June 30, 2024
Changes of Assumptions
There were no assumption changes in 2025.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
25 Note 6 – Other Post-Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on 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 OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The long-term expected real rates of return are presented as geometric means.
The target asset allocation and most recent best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class Target Allocation Expected Real
Global Equity 60.00% 4.56%
Fixed Income 35.00% 0.78%
Cash 5.00% -0.50%
100.00%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.00%
Discount Rate
The discount rates used to measure the total OPEB liability was 6.00%.
Proportionate Share of Net OPEB Liability
The following table shows the Fund’s proportionate share of the net OPEB liability (asset) over the measurement period:
Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2024 1,042,233 $ 1,225,350 $ (183,117) $ Balance at June 30, 2025 (Measurement Date) 1,171,450 1,314,088 (142,638) Net changes during 2024-25 129,217 $ 88,738 $ 40,479 $ Increase (Decrease)
The Transit Fund’s proportion of the net OPEB asset was based on actual contributions paid by the Transit Fund in relation to the total City’s contributions to the OPEB plan, as determined by the City. The Transit Fund’s proportion of the net OPEB asset was as follows:
Measurement Date
June 30, 2024 2.40%
June 30, 2025 2.40%
Change - Increase (Decrease) 0.00%
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
26 Note 6 – Other Post-Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Sensitivity of the Transit Fund’s Proportionate Share of the Net OPEB Asset to Changes in the Discount Rate
The following presents the Transit Fund’s proportionate share of the net OPEB liability if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Discount Rate Current Discount Discount Rate
Measurement Date - 1% '(5%) Rate (6%) + 1% (7%)
June 30, 2025 10,287 $ (142,638) $ (269,922) $ Plan's Net OPE B L iability/(Asset)
The following presents the Transit Fund’s proportionate sh are of the net OPEB asset, as well as what the Transit Fund’s proportionate share of the net OPEB asset would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current health care cost trend rates, for measurement period ended June 30, 2025:
Measurement Date 1% Decrease Current Trend 1% Increase June 30, 2025 (291,423) $ (142,638) $ 39,171 $ Plan's Net OPE B L iability/(Asset)
OPEB Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the City’s ACFR.
OPEB Expenses and Deferred Outflows and Inflows of Resources
For the measurement period ended June 30, 2025, the Transit Fund reported OPEB credit in the amount of ($57,359).
At June 30, 2025, the Fund reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience 81,223$ (155,627) $ Changes of assumptions 92,184 (187,076) Net difference between projected and actual earnings
on plan investments - (51,418) Total 173,407$ (394,121) $
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
27 Note 6 – Other Post-Employment Benefits (OPEB) (Continued)
B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
OPEB Expenses and Deferred Outflows and Inflows of Resources (Continued)
Deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30, OPEB Plan
2026 (29,660) $
2027 (79,205)
2028 (59,224)
2029 (67,150)
2030 (8,866)
Thereafter 23,391
(220,714)$
Deferred Outflows/ (Inflows) of Resources
Note 7 – Compensated Absences
Changes in compensated absences of the Fund at June 30, 2025, consisted of the following:
Balance
July 1, 2024 Balance Due within Due in More
(As restated) Additions Deletions June 30, 2025 One Year Than One Year Compensated absences* 207,485$ 13,819 $ - $ 221,304$ 143,836 $ 77,468 $ * Shown as net change during the year.
Note 8 – Administrative and Personnel Costs
Certain general and administrative costs are allocated to the Transit Fund based upon an approved cost allocation plan.
Such allocated costs in the amount of $3,239,153 were repor ted as salaries and benefits and administrative services expenses for the year ended June 30, 2025.
Note 9 – Transfers from/to the City of Santa Clarita
During the year ended June 30, 2025, the Transit Fund transferred $867,272 to the City of Santa Clarita, $150,000 was mainly to support the senior center transit operations, $69 6,550 for the proportional share of Metrolink station maintenance, $3,690 for the cost of sweeping at the Metrolink stations, and $17,032 for the maintenance at Vista Canyon Transit Center.
The transfer of $5,000,000 from the Proposition A Special Reve nue Fund was to contribute toward the funding of the Vista Canyon Metrolink Station.
Transit Enterprise Fund of the City of Santa Clarita
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
28 Note 10 – Restatement
The implementation of GASB 101 resulted in a change in accounting principle, and prior year amounts have been restated accordingly. As of July 1, 2024, the beginning net position of the Transit Fund was adjusted to reflect the effect of the change.
June 30, 2024 Change in
As Previously Accounting June 30, 2024
Reported Principle As Restated
Net Position 103,463,088 $ (89,166) $ 103,373,922$
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
29 Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Proportion of the Net Pension Liability 3.51435% 3.51435% 3.51435% 3.51435% 3.51435% Proportionate Share of
the Net Pension Liability (Asset) 1,363,600 $ 1,482,595 $ 1,363,159 $ (15,215) $ 1,220,809 $ Covered Payroll 1,377,375 $ 1,313,733 $ 1,277,951 $ 1,255,802 $ 1,196,042 $ Proportionate Share of the Net Pension
Liability as a Percentage of the Covered Payroll 99.00% 107.64% 106.67% -1.21% 99.59% Proportionate Share of the Fiduciary Net
Position as a Percentage of the Total Pension Liability 87.38% 85.20% 85.38% 100.18% 84.69% Notes to Schedule:
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Changes of Assumptions: There were no assumption changes in 2024 and 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
California Public Employees' Retirement System ("CalPERS") Schedule of Proportionate Share of the Net Pension Liability and Related Ratios Required Supplementary Information (Unaudited)
Transit Enterprise Fund of the City of Santa Clarita
30 Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the Net Pension Liability 3.51435% 3.51435% 3.51435% 3.51419% 3.51419% Proportionate Share of
the Net Pension Liability 1,367,413 $ 1,468,640 $ 1,641,432 $ 1,388,588 $ 1,084,341 $ Covered Payroll 1,109,265 $ 1,030,631 $ 1,017,646 $ 1,004,503 $ 957,079 $ Proportionate Share of the Net Pension
Liability as a Percentage of Its Covered Payroll 116.50% 139.46% 156.03% 141.45% 113.30% Proportionate Share of the Fiduciary Net
Position as a Percentage of the Total Pension Liability 81.56% 78.57% 74.42% 75.27% 79.11% For the Years Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") (Continued) Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued) 31 Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially determined contribution 202,478 $ 269,240 $ 250,337 $ 228,804 $ 217,547 $ Contributions in relation to the
actuarially determined contribution1 (272,765) (339,527) (320,601) (297,419) (394,284) Contribution deficiency (excess) (70,287) $ (70,287) $ (70,264) $ (68,615) $ (176,737) $ Covered Payroll2 1,496,753$ 1,377,375 $ 1,313,733 $ 1,277,951 $ 1,255,802 $ Contributions as a percentage of covered payroll 18.22% 19.80% 24.40% 23.27% 31.40% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Payroll Growth
Investment rate of return
Retirement age
Mortality
2.80%
6.80% net of pension plan investment and administrative expenses; includes Inflation.
The probabilities of retirement are based on the 2021 CalPERS Experience study for the period from 2001 to 2019.
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 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 2 Covered payroll represented above includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 and 2023; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 202 2 funding valuation report.
Level percentage of payroll
Entry Age Normal Cost Method
Fair Value Assets. For details, see June 30, 2022 Funding Valuation Report.
2.30%
Varies by entry age and service
California Public Employees' Retirement System ("CalPERS") Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2025
Last Ten Fiscal Years
32 Fiscal Year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially determined contribution 222,244 $ 198,133 $ 163,846 $ 157,589 $ 139,123 $ Contributions in relation to the
actuarially determined contribution1 (561,483) (439,293) (339,563) (157,589) $ (139,129) Contribution deficiency (excess) (339,239) $ (241,160) $ (175,717) $ - $ (6) $ Covered Payroll2 1,196,042$ 1,109,265 $ 1,030,631 $ 1,017,646 $ 1,004,503 $ Contributions as a percentage of covered payroll 46.95% 39.60% 32.95% 15.49% 13.85% Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") (Continued) Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
33 Measurement Date June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Proportion of the Net OPEB Liability 2.40% 2.40% 2.40% 2.40% 2.40% Proportionate Share of
the Net OPEB Liability (Asset) (142,638) $ (183,117) $ (123,020) $ (49,718) $ (301,813) $ Covered-employee payroll 1,189,135 $ 1,117,759 $ 1,093,980 $ 993,256 $ 855,299 $ Proportionate share of the net OPEB liability as
a percentage of its covered-employee payroll -12.00% -16.38% -11.25% -5.01% -35.29% Proportionate Share of the Fiduciary Net Position
as a percentage of the total OPEB Liability 112.18% 117.60% 112.30% 104.90% 131.67% 1 Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18.
Transit Enterprise Fund of the City of Santa Clarita
Retiree Healthcare Plan
Last Ten Fiscal Years
Required Supplementary Information (Unaudited)
Schedule of Proportionate Share of Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2025
34 Measurement Date June 30, 2020 June 30, 2019 June 30, 20181 Proportion of the Net OPEB Liability 2.40% 2.40% 2.40%
Proportionate Share of
the Net OPEB Liability (Asset) 400,077 $ 146,648 $ 247,416 $ Covered-employee payroll 919,082 $ 813,498 $ 735,216 $ Proportionate share of the net OPEB liability as
a percentage of its covered-employee payroll 43.53% 18.03% 33.65% Proportionate Share of the Fiduciary Net Position
as a percentage of the total OPEB Liability 71.67% 87.12% 79.08% Retiree Healthcare Plan (Continued)
Last Ten Fiscal Years
Transit Enterprise Fund of the City of Santa Clarita
For the Year Ended June 30, 2025
Schedule of Proportionate Share of Net Other Postemployment Benefits Liability and Related Ratios (Continued) Required Supplementary Information (Unaudited)
35 Fiscal Year 2024-25 2023-24 2022-23 2021-22 2020-21
Actuarially determined contribution 11,904 $ 6,552 $ 5,568 $ 11,568 $ 12,408 $ Contributions in relation to
the actuarially determined contribution 8,616 6,672 6,073 7,224 15,312 Contribution deficiency (excess) 3,288 $ (120) $ (505) $ 4,344 $ (2,904) $ Covered-employee payroll 1,189,135 $ 1,117,759 $ 1,093,980 $ 993,256 $ 855,299 $ Contributions as a percentage of
covered-employee payroll 0.72% 0.60% 0.56% 0.73% 1.79%
Notes to Schedule:
1 Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18.
Methods and assumptions used to determine contribution rates:
Contribution valuation date June 30, 2024
Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method Level percentage of payroll
Remaining amortization period Approximately 7.5 years remaining for 2024/25 Asset valuation method Fair Value
Discount rate 6.00%
General inflation 2.50%
Medical trend
Mortality CalPERS 2000-2019 Experience Study.
Mortality improvement Mortality projected fully generational with Scale MP-2021.
Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076.
Retiree Healthcare Plan
Last Ten Fiscal Years
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
36 Fiscal Year 2019-20 2018-19 2017-181
Actuarially determined contribution 26,688 $ 27,048 $ 42,120 $ Contributions in relation to
the actuarially determined contribution 15,264 22,159 29,448 Contribution deficiency (excess) 11,424 $ 4,889 $ 12,672 $ Covered-employee payroll 919,082 $ 813,498 $ 735,216 $ Contributions as a percentage of
covered-employee payroll 1.66% 2.72% 4.01%
Last Ten Fiscal Years
Retiree Healthcare Plan (Continued)
Transit Enterprise Fund of the City of Santa Clarita
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2025
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