Agenda packet, regular meeting, first session — Santa Fe Springs City Council, March 1, 2022 (part 1 of 2)

Agenda
03-01-22 AGENDA.PDF
Meeting Materials
MARCH 1, 2022, MEETING VIDEO
03-01-2022 AGENDA PACKET.PDF

1. Documents:

2. Documents:
.

AGENDA

REGULAR MEETINGS OF THE SANTA FE SPRINGS

HOUSING SUCCESSOR

SUCCESSOR AGENCY

AND CITY COUNCIL
March 1, 2022
6:00 P.M.

John M. Mora, Councilmember
Jay Sarno, Councilmember
Juanita Trujillo, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor
Council Chambers
11710 Telegraph Road
Santa Fe Springs, CA 90670
You may attend the City Council meeting telephonically or electronically using the following means:

Electronically using Zoom: Go to Zoom.us and click on “Join A Meeting” or use the following link:
https://zoom.us/j/521620472?pwd=U3cyK1RuKzY1ekVGZFdKQXNZVzh4Zz09 Zoom Meeting ID: 521620472 Password: 659847
Telephonically: Dial: 888-475-4499 Meeting ID: 521620472 Public Comment: The public is encouraged to
address City Council on any matter listed on the
agenda or on any other matter within its
jurisdiction. If you wish to address the City
Council, please use the "Raise Hand" function
via Zoom once the Mayor opens Public
Comment during the meeting. You may also
submit comments in writing by sending them to
the City Clerk's Office at
[email protected]. All written
comments received by 12:00 p.m. the day of the
City Council Meeting will be distributed to the
City Council and made a part of the official record
of the meeting. Written comments will not be
read at the meeting, only the name of the person
submitting the comment will be announced.

Americans with Disabilities Act: In compliance
with the ADA, if you need special assistance to
participate in a City meeting or other services
offered by this City, please contact the City Clerk’s
Office. Notification of at least 48 hours prior to the
meeting or time when services are needed will
assist the City staff in assuring that reasonable
arrangements can be made to provide
accessibility to the meeting or service.

Pursuant to provisions of the Brown Act, no
action may be taken on a matter unless it is listed
on the agenda, or unless certain emergency or
special circumstances exist. The City Council
may direct staff to investigate and/or schedule
certain matters for consideration at a future City
Council meeting.

Please Note: Staff reports, and supplemental
attachments, are available for inspection at the
office of the City Clerk, City Hall, 11710 E.

Telegraph Road during regular business hours
7:30 a.m.-5:30 p.m., Monday-Thursday and every
other Friday. Telephone: (562) 868-0511.

City of Santa Fe Springs
Regular Meetings March 1, 2022
2 1. CALL TO ORDER

2. ROLL CALL
John M. Mora, Councilmember
Jay Sarno, Councilmember
Juanita Trujillo, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor

3. INVOCATION

4. PLEDGE OF ALLEGIANCE

5. PUBLIC COMMENTS This is the time when comments may be made by members of the public on matters within the jurisdiction of the City Council, on the agenda and not on the agenda. The time limit for each speaker is three minutes unless otherwise specified by the Mayor.

HOUSING SUCCESSOR

6. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the Housing Successor.

Minutes of the February 1, 2022 Housing Successor Meeting (City Clerk) Recommendation:
 Approve the minutes as submitted.

SUCCESSOR AGENCY

7. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the Successor Agency.

Minutes of the February 1, 2022 Successor Agency Meeting (City Clerk) Recommendation:
 Approve the minutes as submitted.

CITY COUNCIL

City of Santa Fe Springs
Regular Meetings March 1, 2022
3 b. A Resolution of the City Council Reaffirming the Existence of a Local Emergency Due to Threat of COVID-19 (pursuant to Government Code section 8630) (City Attorney)
Recommendation:
 Adopt Resolution No. 9768:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS, CALIFORNIA, REAFFIRMING THE EXISTENCE OF A LOCAL EMERGENCY DUE TO THE THREAT OF COVID-19.
c. A Resolution of the City Council Affirming Authorization of Remote Teleconference Meetings (City Attorney)
Recommendation:
 Adopt Resolution No. 9769:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS AFFIRMING THE LEGALLY REQUIRED FINDINGS TO

AUTHORIZE THE CONDUCT OF REMOTE TELECONFERENCE
MEETINGS DURING A STATE OF EMERGENCY.
d. Resolution No. 9764 – Ordering the Preparation of the Engineer’s Report for Fiscal Year 2022/23 in Conjunction with the Annual Levy of Assessments for Street Lighting District No. 1 (Public Works)
Recommendation:
 Adopt Resolution No. 9764, ordering the preparation of the Engineer’s Report for Fiscal Year 2022/23 in conjunction with the annual levy of assessments for Street Lighting District No. 1.
e. Resolution No. 9765 – Ordering the Preparation of the Engineer’s Report for Fiscal Year 2022/23 in Conjunction with the Annual Levy of Assessments for Heritage Springs Assessment District No. 2001-01 (Hawkins Street and Palm Drive) (Public Works)
Recommendation:
 Adopt Resolution No. 9765, ordering the preparation of the Engineer’s Report for Fiscal Year 2022/23 in conjunction with the annual levy of assessments for Heritage Springs Assessment District No. 2001-01 (Hawkins Street and Palm Drive).
f. Catch Basin Maintenance Services – Renewal of Contract (Public Works) Recommendation:
 Renew the contract for an additional year with Ron's Maintenance, Inc. for Catch Basin Inspection and Cleaning, for an amount not to exceed $31,760. g. Meeting Report from the January 27, 2022 Meeting of the Audit/Finance Subcommittee (Finance) Recommendation:
 Receive and file the meeting report from the January 27, 2022 meeting of the Audit/Finance Sub-committee.

City of Santa Fe Springs
Regular Meetings March 1, 2022
4 h. Government Tort Claim Denial – BNSF Railway Company (City Attorney) Recommendation:
 Deny the government tort claim from BNSF Railway Company and authorize the Municipal Affairs Manager or designee to send a denial letter in a form approved by the City Attorney’s office.

PUBLIC HEARING

9. Consideration of an Appeal of Development Plan Approval Case No. 980 and related Environmental Documents (Initial Study/Mitigated Negative Declaration) (Planning) Recommendation:
 Continue the appeal hearing to the April 5, 2022 City Council Meeting.

NEW BUSINESS

10. Presentation and Consideration of the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2021 (Finance)
Recommendation:
 Receive and file the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2021 and related communications.

11. Resolution No. 9766 and Resolution No. 9767 – Request for Parking Restrictions during Certain Hours and for Vehicles over 6000 Pounds on Larwin Circle west of Marquardt Avenue (Public Works)
Recommendation:
 Adopt Resolution No. 9766 to implement a parking restriction between the hours of 6:00 p.m. and 6:00 a.m. with a tow-away zone for vehicles that violate parking the restriction on both sides of Larwin Circle from Marquardt Avenue to a point 460 feet west of Marquardt Avenue; and  Adopt Resolution No. 9767 for the restriction of parking of vehicles weighing over 6000 Pounds on both sides of Larwin Circle from Marquardt Avenue to a point 460 feet west of Marquardt Avenue.

12. PRESENTATIONS
Proclamation – Proclaiming the week of March 21-27, 2022 as “National Drug and Alcohol Facts Week”

13. CITY MANAGER’S AND EXECUTIVE TEAM REPORTS

14. APPOINTMENTS TO BOARDS, COMMITTEES, COMMISSIONS

15. COUNCIL COMMENTS

16. ADJOURNMENT
I, Janet Martinez, City Clerk for the City of Santa Fe Springs, do hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted at the following locations; City’s website at www.santafesprings.org; Santa Fe Springs City Hall, 11710 Telegraph Road; Santa Fe Springs City Library, 11700 Telegraph Road; and the Town Center Plaza (Kiosk), 11740 Telegraph Road, not less than 72 hours prior to the meeting.

City of Santa Fe Springs
Regular Meetings March 1, 2022
5 February 25, 2022
Janet Martinez, CMC, City Clerk Date Posted
.

AGENDA

REGULAR MEETINGS OF THE SANTA FE SPRINGS

HOUSING SUCCESSOR

SUCCESSOR AGENCY

AND CITY COUNCIL
March 1, 2022
6:00 P.M.

Please Note: Staff reports, and supplemental
attachments, are available for inspection at the
office of the City Clerk, City Hall, 11710 E.

Telegraph Road during regular business hours
7:30 a.m.-5:30 p.m., Monday-Thursday and every
other Friday. Telephone: (562) 868-0511.

City of Santa Fe Springs
Regular Meetings March 1, 2022
2 1. CALL TO ORDER

2. ROLL CALL
John M. Mora, Councilmember
Jay Sarno, Councilmember
Juanita Trujillo, Councilmember
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Mayor

3. INVOCATION

4. PLEDGE OF ALLEGIANCE

HOUSING SUCCESSOR

Minutes of the February 1, 2022 Housing Successor Meeting (City Clerk) Recommendation:
 Approve the minutes as submitted.

SUCCESSOR AGENCY

Minutes of the February 1, 2022 Successor Agency Meeting (City Clerk) Recommendation:
 Approve the minutes as submitted.

CITY COUNCIL

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS AFFIRMING THE LEGALLY REQUIRED FINDINGS TO

PUBLIC HEARING

NEW BUSINESS

12. PRESENTATIONS
Proclamation – Proclaiming the week of March 21-27, 2022 as “National Drug and Alcohol Facts Week”

13. CITY MANAGER’S AND EXECUTIVE TEAM REPORTS

14. APPOINTMENTS TO BOARDS, COMMITTEES, COMMISSIONS

15. COUNCIL COMMENTS

City of Santa Fe Springs
Regular Meetings March 1, 2022
5 February 25, 2022
Janet Martinez, CMC, City Clerk Date Posted
FOR ITEM NO. 6
PLEASE SEE ITEM NO. 8A
FOR ITEM NO. 7
PLEASE SEE ITEM NO. 8A
City Council Meeting March 1, 2022
Report Submitted By: Janet Martinez, City Clerk/ Date of Report: February 25, 2022 Fernando Munoz, Deputy City Clerk
City of Santa Fe Springs

CONSENT AGENDA
Minutes of the January 27 and February 1, 2022 Special and Regular City Council Meetings

BACKGROUND
Staff has prepared minutes for the following meetings:
• Special City Council Meeting of January 27, 2022
• Regular City Council Meeting of February 1, 2022
Staff hereby submits the minutes for Council’s approval.

Raymond R. Cruz
City Manager
Attachments:

1. January 27, 2022 Special Meeting Minutes

2. February 1, 2022 Special Meeting Minutes

RECOMMENDATION(S)
• Approve the minutes as submitted.

ITEM NO. 8A
APPROVED:

MINUTES OF THE REGULAR MEETINGS OF THE

CITY COUNCIL
February 1, 2022

1. CALL TO ORDER
Mayor Rodriguez called the meeting to order at 6:03 p.m.

2. ROLL CALL
Members present: Councilmembers/Directors: Mora, Sarno, Trujillo, Mayor Pro Tem/Vice Chair Zamora and Mayor/Chair Rodriguez.

Members absent: None

3. INVOCATION
Councilmember Sarno led the invocation.

4. PLEDGE OF ALLEGIANCE
Councilmember Sarno led the Pledge of Allegiance.

5. PUBLIC COMMENTS
The following people spoke during Public Comments: Lang Cottrell, Moshe Sassover, Steve Masura, Jeff Farano, Jeff Hamilton, Francis Park, and Stephane Wandel.

HOUSING SUCCESSOR

Minutes of the January 4, 2022 Housing Successor Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

It was moved by Mayor Pro Tem Zamora, seconded by Councilmember Sarno, to approve the minutes as submitted, by the following vote:

Ayes: Mora, Sarno, Trujillo, Zamora, Rodríguez
Nayes: None

Absent: None

SUCCESSOR AGENCY

Minutes of the February 1, 2022 Housing Successor, Successor Agency, and City Council Meetings

Page 2 ends

a. Minutes of the January 4, 2022 Successor Agency Meetings (City Clerk) Recommendation:
• Approve the minutes as submitted.

It was moved by Councilmember Trujillo, seconded by Councilmember Mora, to approve the minutes as submitted, by the following vote:

Ayes: Mora, Sarno, Trujillo, Zamora, Rodríguez
Nayes: None

Absent: None

CITY COUNCIL

8. CONSENT AGENDA
Consent Agenda items are considered routine matters which may be enacted by one motion and vote. Any item may be removed from the Consent Agenda and considered separately by the City Council.
a. Minutes of the January 4, 5, 11, 2022 Regular and Special City Council Meetings (City Clerk)
Recommendation:
• Approve the minutes as submitted.
b. A Resolution of the City Council Reaffirming the Existence of a Local Emergency Due to Threat of COVID-19 (pursuant to Government Code section 8630) (City Attorney)
Recommendation:
• Adopt Resolution No. 9757:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS AFFIRMING THE LEGALLY REQUIRED FINDINGS TO

AUTHORIZE THE CONDUCT OF REMOTE TELECONFERENCE
MEETINGS DURING A STATE OF EMERGENCY.
d. Resolution No. 9758 – Weed Abatement (City Clerk)
Recommendation:
• Adopt Resolution No. 9758 declaring weeds a public nuisance, declaring its intention to remove them, and setting Tuesday, February 15, 2022 as the date for the Public Hearing.
e. Exchange Agreement and Assignment of Federal Surface Transportation Program Local and Highway Infrastructure Programs Funds (Public Works) Recommendation:
• Authorize the Director of Public Works to execute Final Form, approved by Minutes of the February 1, 2022 Housing Successor, Successor Agency, and City Council Meetings

Page 3 ends

City Attorney’s Office, of Exchange Agreement and Assignment of the Federal Surface Transportation Program Local (STP-L) Funds and Highway Infrastructure Programs (HIP) Funds to partially fund the Pioneer Boulevard Street Improvement Project.

It was moved by Councilmember Trujillo, seconded by Councilmember Mora, to approve Item Nos. 8A through 8E, by the following vote:

Ayes: Mora, Sarno, Trujillo, Zamora, Rodriguez
Nayes: None

Absent: None

NEW BUSINESS

9. Resolution No. 9755 – Request for Parking Restrictions during Certain Hours on the east side of Painter Avenue south of Florence Avenue (Public Works) Recommendation:
• Adopt Resolution No. 9755 to implement a parking restriction between the hours of 7:00 p.m. and 5:00 a.m. and a tow-away zone for vehicles that violate the restriction on the east side of Painter Avenue from a point 875 feet south of Florence Avenue to a point 1030 feet south of Florence Avenue.

Director of Public Works, Noe Negrete provided a presentation on Item No. 9.

It was moved by Mayor Pro Tem Zamora, seconded by Councilmember Sarno, to adopt Resolution No. 9755 to implement a parking restriction between the hours of 7:00 p.m. and 5:00 a.m. and a tow-away zone for vehicles that violate the restriction on the east side of Painter Avenue from a point 875 feet south of Florence Avenue to a point 1030 feet south of Florence Avenue, by the following vote:

Ayes: Mora, Sarno, Trujillo, Zamora, Rodriguez
Nayes: None

Absent: None

10. On-Call Professional Engineering Services for the Design of Residential Streets Improvements South of Florence Avenue (Orr & Day Road to Ringwood Avenue) Project – Award of Contract (Public Works)
Recommendation:
• Accept the Request For Quotes (RFQ’s);
• Appropriate $100,000 from the Utility User Tax (UUT) Capital Improvement Fund to the Design of Residential Streets Improvements South of Florence Avenue (Orr & Day Road to Ringwood Avenue) Project Account No. PW220002;
• Award a Contract to NV5, Inc. from Irvine, California for the Design of the Residential Streets Improvements South of Florence Avenue (Orr & Day Road to Ringwood Avenue) in the amount of $85,500; and • Authorize the Director of Public Works to execute Task Order for OnCall Professional Engineering Services with NV5, Inc.

Minutes of the February 1, 2022 Housing Successor, Successor Agency, and City Council Meetings

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Director of Public Works, Noe Negrete provided a presentation on Item No. 10.

Councilmember Mora asked if this item would jeopardize the potential funding from Caltrans from the I-5 Project fund. Director Negrete stated that it would only be jeopardized if the City were to begin construction, not the design.

It was moved by Mayor Pro Tem Zamora, seconded by Councilmember Trujillo, to accept the Request For Quotes (RFQ’s), appropriate $100,000 from the Utility User Tax (UUT) Capital Improvement Fund to the Design of Residential Streets Improvements South of Florence Avenue (Orr & Day Road to Ringwood Avenue) Project Account No. PW220002, award a Contract to NV5, Inc. from Irvine, California for the Design of the Residential Streets Improvements South of Florence Avenue (Orr & Day Road to Ringwood Avenue) in the amount of $85,500, and authorize the Director of Public Works to execute Task Order for On-Call Professional Engineering Services with NV5, Inc., by the following vote:

Ayes: Mora, Sarno, Trujillo, Zamora, Rodriguez
Nayes: None

Absent: None

11. 2040 Comprehensive General Plan Update
Recommendation:
• Receive update from staff and provide direction as desired.

City Manager, Raymond R. Cruz provided a brief update on the General Plan in regards to concerns that the business community has with approving the housing and zoning elements separately.

Director of Planning, Wayne M. Morrell provided information on the Amazon facility, stating that its use is meant for parcel delivery and was never approved for logistical purposes. He also spoke about specifics regarding land and zoning policies, and pledged to continue to work with the business community to sort out the outstanding issues.

Assistant Director of Planning, Cuong Nguyen summarized staff’s achievements to date, and spoke about certain outstanding issues such as nonconforming uses and the land use map specifically regarding light industrial areas, highlighting Planning’s efforts are coming close to a solution.

Councilmember Sarno asked about potential ramifications if the housing element is passed but the land use element is not passed on February 8th. Planning Consultant Laurel Reimer explained that Council would essentially be approving housing units within land use designations that would not exist, being out of compliance with requirements from the State. Councilmember Sarno asked if there were any industrial sites with proposed zoning changes where new housing could potentially be built. Consultant Reimer responded yes, but not in all industrial areas. Councilmember Sarno made additional comments in regards to coming to an agreement with the business community.

Director Morrell stated that prolonging the approval of the proposed elements would not make a difference as all concerns have already been stated, and postponing approval would also jeopardize grant funding. City Manager, Ray Cruz also advised against bifurcation. Mayor Pro Tem Zamora agreed with adhering to the timeline. Assistant Minutes of the February 1, 2022 Housing Successor, Successor Agency, and City Council Meetings

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Director Nguyen elaborated on nuances in regards to downsizing certain zones.

Councilmember Mora commented on coming to a solution by February 8th.

12. PRESENTATIONS
Virtual Presentation by Leonard Barrales, District Manager for the Los Angeles County Economic Development Corporation (LAEDC), to award the City of Santa Fe Springs with a Silver Certificate for the 2021 Most Business Friendly City Award (Planning)

13. CITY MANAGER’S AND EXECUTIVE TEAM REPORTS
• City Manager, Raymond R. Cruz stated that due to the high number of City employees exposed to COVID-19, working shifts will remain until February 17, with Council Meetings still being held remotely during that period. • Director of Public Works, Noe Negrete stated that a CIP Study Session is tentatively set for March 1st. He also spoke about attending the Our Lady of Perpetual Help career day to speak about engineering to young students.

Lastly, he announced that the colored lights on the Telegraph Rd/Norwalk Blvd bridge will be set to blue and yellow in support of the Los Angeles Rams at the Super Bowl.
• Director of Planning, Wayne Morrell spoke about the Planning Commission approving a Chick-fil-A on Telegraph Rd by Painter Ave. He also spoke about the Christmas Decorating Contest.
• Director of Police Services, Dino Torres spoke about a promotional video that will be provided to Council highlighting what Red Ribbon Week means to the community.
• Fire Chief, Brent Hayward provided an update on COVID-19 cases throughout the City. He also promoted the COVID Testing Mega-Site in the City of Norwalk, and lastly provided a progress report on the Pierce fire engine. • Director of Finance, Travis Hickey spoke about the Chamber of Commerce’s Annual Economic Outlook hosted on January 20. He also spoke about receiving funds form the California Water Board that assist in providing COVID relief for water utilities.
• Director of Community Services, Maricela Balderas spoke about the upcoming Shamrock 5K Fun Run/Walk on March 12, and provided information on the Couch to 5K training program available to residents to prepare for the run. She reported that the homeless count is being postponed to February 23 due to a high surge of COVID cases.

14. APPOINTMENTS TO BOARDS, COMMITTEES, COMMISSIONS
Councilmember Sarno appointed Sally Gaitan to the Beautification and Historical Advisory Committee.

Mayor Rodriguez appointed Frank Martinez and Jimmy Mendoza to the Sister City Advisory Committee, and Elena Lopez (Boca) to the Beautification and Historical Advisory Committee.

15. COUNCIL COMMENTS
Councilmember Mora wished everyone a Happy Lunar New Year, and also thanked Planning Department staff for their continued efforts on the General Plan.

Minutes of the February 1, 2022 Housing Successor, Successor Agency, and City Council Meetings

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Councilmember Sarno thanked the Human Resources Department for their efforts in managing the number of COVID-19 cases across City staff.

Councilmember Trujillo thanked all departments for continuing to provide services despite the rising COVID-19 numbers, and also looked forward to the completion of the General Plan in the near future.

Mayor Pro Tem Zamora thanked first responders for their efforts and thanked City staff for their contributions and also thanked the Planning Department for their work towards completion of the General Plan.

Mayor Rodriguez thanked all City staff for their work on the General Plan, and also thanked the Chamber of Commerce on their business card change event at the Chick-filA in Norwalk. Lastly, she spoke about attending the Mayor’s Academy and shared what she learned to make better decisions for the community.

16. ADJOURNMENT
Mayor Rodriguez adjourned the meeting at 7:43 p.m.
_____________________
Annette Rodriguez
Mayor
ATTEST:
_____________________
Janet Martinez Date
City Clerk
APPROVED:
+

MINUTES OF THE SPECIAL MEETING OF THE

CITY COUNCIL
January 27, 2022

1. CALL TO ORDER
Mayor Rodriguez called the meeting to order via teleconference at 5:04 p.m.

2. ROLL CALL
Members present: Councilmembers Mora, Sarno, Trujillo, Mayor Pro Tem Zamora, and Mayor Rodriguez.

Members absent: None.

CITY COUNCIL

3. STUDY SESSION
2040 Comprehensive General Plan Update (Planning)
Recommendation:

There is no action required at this time. Following this study session, unless a subsequent study session is requested, staff will return to the City Council at a Special City Council meeting on February 8, 2022, seeking approval for the 2040 Comprehensive General Plan update and Final Environmental Impact Report.

City Manager, Raymond R. Cruz provided a brief introduction to Item No. 3.

Councilmember Sarno inquired about the differences on items between City staff and interested business parties.

Director of Planning, Wayne Morrell stated that new language has been proposed by the City’s business partners that has not yet been thoroughly reviewed.

Assistant Director of Planning, Cuong Nguyen provided an overview of four options that are available for selection in terms of coming to an agreement with certain zoning areas.

Assistant Director Nguyen summarized new nonconforming uses and amortization policies, including new land use element policies and a new program which directs staff to review nonconforming uses. New implementing zones matrix showcased the implementing zones that correspond to specific land use designations. He continued to elaborate on the additional options for specific sites such as the area west of the I-605, area north of Telegraph/West of Norwalk, area north of Florence/West of Bloomfield, area known as the Koontz Site, and the area known as the Maersk/Goodman site. Once the new draft language that has been submitted by the business community has been reviewed, it will be considered so long as it complies with the City’s overall vision and guiding principles towards implementation of the General Plan.

Director Morrell stated that the light industrial is a general plan designation, but in terms Minutes of the January 27, 2022 Special City Council Meeting

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of zoning it is a light manufacturing zone, meaning developers can look at that existing zoning and see what types of uses can be allowed and disallowed. The other item pertaining to the freeway overlay zone, the existing permitted uses would remain and there is no more ambiguity. In respect to Councilmember Sarno’s question about having differences, it comes down to the nonconforming provisions and the idea is to have an amortization period in which current uses could remain.

4. PUBLIC COMMENTS
The following persons spoke during Public Comment: Mike Foley, Steve Masura with Rexford Industrial, Francis Park, Lang Cottrell, Stephane Wandel, Ajit Thind, Moshe Sassover.

Councilmember Sarno asked Steve Masura which items he was stuck on. Mr. Masura said he wanted to keep his businesses whole, and have a conversation about having assurance with flexibility, and to be able to continue providing economic benefit.

City Attorney, Ivy M. Tsai clarified that implementation of the zoning amendments that will follow after General Plan adoption on February 8, will be considered on their own and will have a robust public hearing process in front of the Planning Commission and the City Council. Those implementations will not be done administratively and will be done with consideration of the community.

Councilmember Sarno asked Chief Hayward if the changes of zones would assist with controlling hazardous materials. Chief Hayward responded that any changes would be stable, and does not foresee any changes to zoning affecting any codes or enforcement issues. He added that a safety margin increases the further away a business moves from a residential structure. Councilmember Sarno asked if there are any areas of concern based on the information that has been provided. Chief Hayward stated that an initial area of concern would be the Koontz site, but that all other areas seem to have an effect of positivity.

Director Morrell added this meeting has been emblematic of the effort being made by City staff and the business community, and commended each party for moving forward to accomplishing their goals.

City Manager Ray Cruz asked if Council would like another special meeting scheduled prior to February 8th. Mayor Pro Tem Zamora would like a meeting after February 1st.

Council continued to discuss possible dates and placed a placeholder for a council meeting on Thursday, February 3rd and a possible agenda item on February 1st.

5. ADJOURNMENT
Mayor Rodriguez adjourned the meeting at 6:04 p.m.

Minutes of the January 27, 2022 Special City Council Meeting

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_____________________
Annette Rodriguez
Mayor
ATTEST:
_____________________
Janet Martinez Date
City Clerk
City Council Meeting March 1, 2022
Report Submitted By: Ivy M. Tsai, City Attorney Date of Report: February 25, 2022 City of Santa Fe Springs

CONSENT AGENDA
A Resolution of the City Council Reaffirming the Existence of a Local Emergency Due to the Threat of COVID-19 (pursuant to Government Code section 8630)

BACKGROUND
On March 4, 2020, the Governor of California issued a proclamation declaring a state of emergency due to the threat of COVID-19. On March 13, 2020, the President of the United States issued a proclamation of national emergency, beginning March 1, 2020, due to the COVID-19 outbreak. On March 17, 2020, the City Manager, acting as the Director of Emergency Services, issued a proclamation declaring the existence of a local emergency beginning March 12, 2020, due to the threat of COVID-19. On March 18, 2020, the City Council adopted Resolution No. 9668 ratifying the proclamation, and on April 9, 2020, the City Council adopted Resolution No. 9669 relating to taking action in response to the local emergency. The City Council has continued to reaffirm the existence of a local emergency due to the threat of COVID-19.

Government Code section 8630(c) provides that the City Council shall review the need for continuing the local emergency at least once every 60 days until the City Council terminates the local emergency. The state of emergency still exists and has not been lifted at the statewide or county level. The Los Angeles County Department of Public Health issued a revised health order on January 10, 2022, which states that the County remains at a high rate of transmission based on the Centers for Disease Control and Prevention (CDC) indicators. The health order also states that the Delta variant, which remains predominant in Los Angeles County, is two times as contagious as earlier variants and continues to lead to increased infections, and that the arrival of the Omicron variant may further increase risk of infection.

The reasons for declaring a local emergency still exist, and therefore, staff recommends that the City Council adopt the attached Resolution affirming the existence of a local emergency in accordance with Government Code section 8630(c).

Raymond R. Cruz
City Manager
Attachment:

1. Resolution No. 9768

RECOMMENDATION
• Adopt Resolution No. 9768:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS, CALIFORNIA, REAFFIRMING THE EXISTENCE OF A
LOCAL EMERGENCY DUE TO THE THREAT OF COVID-19
ITEM NO. 8B
APPROVED:

ITEM NO.:
1 RESOLUTION NO. 9768

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS,

CALIFORNIA, REAFFIRMING THE EXISTENCE OF A LOCAL EMERGENCY DUE TO THE THREAT OF COVID-19
WHEREAS, on March 4, 2020, the Governor of California issued a proclamation declaring a state of emergency due to the threat of COVID-19; and WHEREAS, on March 13, 2020, the President of the United States issued a proclamation of national emergency, beginning March 1, 2020, due to the COVID-19 outbreak; and
WHEREAS, on March 17, 2020, the City Manager, acting as the Director of Emergency Services, issued a proclamation declaring the existence of a local emergency beginning March 12, 2020, due to the threat of COVID-19; and WHEREAS, on March 18, 2020, the City Council adopted Resolution No. 9668 ratifying the proclamation declaring the existence of a local emergency, and on April 9, 2020, the City Council adopted Resolution No. 9669 relating to taking action in response to the local emergency; and
WHEREAS, the City Council previously adopted resolutions reaffirming the existence of a local emergency due to the threat of COVID-19 pursuant to Government Code section 8630(c), which provides that the City Council shall review the need for continuing the local emergency at least once every 60 days until the City Council terminates the local emergency; and
WHEREAS, the state of emergency still exists and has not been lifted at the statewide or county level; and
WHEREAS, the Los Angeles County Department of Public Health issued a revised health order on January 10, 2022, which states that the County remains at a high rate of transmission based on the Centers for Disease Control and Prevention (CDC) indicators; and
WHEREAS, the health order also states that the Delta variant, which remains predominant in Los Angeles County, is two times as contagious as earlier variants and continues to lead to increased infections, and that the arrival of the Omicron variant may further increase risk of infection; and
2 WHEREAS, COVID-19 continues to pose a threat to the safety of individuals in Santa Fe Springs and Los Angeles County, and the reasons for declaring a local emergency still exist.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

1. The City Council determines that there is need for continuing the local emergency until such time as the City Council declares the termination of the local emergency. The City Council will review the need for continuing the local emergency at least once every 60 days in accordance with Government Code section 8630(c).

2. The City Council reaffirms Resolution Nos. 9668 and 9669 relating to the declaration of and response to a local emergency due to the threat of COVID-19, and all parts therein.

APPROVED and ADOPTED this 1st day of March, 2022.

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Annette Rodriguez, Mayor
ATTEST:
__________________________
Janet Martinez, CMC, City Clerk
City Council Meeting March 1, 2022
Report Submitted By: Ivy M. Tsai, City Attorney Date of Report: February 25, 2022 City of Santa Fe Springs

CONSENT AGENDA
A Resolution of the City Council Affirming Authorization of Remote Teleconference Meetings

BACKGROUND
At its regular meeting of December 7, 2021, the City Council adopted Resolution No. 9747 authorizing the City Council and all legislative bodies and committees of the City to meet by teleconference. In order to continue holding teleconference meetings pursuant to this new law, an agency is required, at least every 30 days, to make the following findings by majority vote:
(A) The legislative body has reconsidered the circumstances of the state of emergency.
(B) Any of the following circumstances exist:
(i) The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii) State or local officials continue to impose or recommend measures to promote social distancing.

On March 4, 2020, the Governor issued a proclamation declaring a state of emergency due to the threat of COVID-19. The California Department of Public Health and the County of Los Angeles Department of Public Health have issued public health orders during this state of emergency for the purpose of reducing transmission of COVID-19. Such orders have included social distancing requirements. The state of emergency continues to directly impact the ability of the members to meet safely in person due to a number of factors, including the high number of daily cases and community transmission and increased transmission of COVID-19 by the Delta variant. The Department of Public Health has stated that the Delta variant is two times as contagious as earlier variants, remains predominant in Los Angeles County, and continues to lead to increased infections.

Accordingly, staff has prepared the attached resolution to continue to authorize remote teleconference meetings and will include on all future meeting agendas such a resolution until such time as the state of emergency ceases, or as otherwise directed by the City Council.

RECOMMENDATION
 Adopt Resolution No. 9769:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS AFFIRMING THE LEGALLY REQUIRED FINDINGS TO

AUTHORIZE THE CONDUCT OF REMOTE TELECONFERENCE

MEETINGS DURING A STATE OF EMERGENCY
ITEM NO. 8C
City Council Meeting March 1, 2022
Report Submitted By: Ivy M. Tsai, City Attorney Date of Report: February 25, 2022 City of Santa Fe Springs
Raymond R. Cruz
City Manager
Attachment:

1. Resolution No. 9769
APPROVED:

ITEM NO.:
1 RESOLUTION NO. 9749
RESOLUTION NO. 9769

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS

AFFIRMING THE LEGALLY REQUIRED FINDINGS TO AUTHORIZE THE CONDUCT

OF REMOTE TELECONFERENCE MEETINGS DURING A STATE OF EMERGENCY WHEREAS, on March 4, 2020, pursuant to California Government Code section 8625, the Governor declared a state of emergency; and
WHEREAS, on September 17, 2021, the Governor signed AB 361, which bill went into immediate effect as urgency legislation; and
WHEREAS, AB 361 adds Subsection (e) to Section 54953 of the Government Code to authorize legislative bodies to conduct teleconference meetings without complying with the requirements set forth in Section 54953(b)(3), provided the legislative body makes specified findings and complies with certain requirements; and WHEREAS, the County of Los Angeles Department of Public Health reports a high number of daily cases and community transmission, as well as increased transmission of COVID-19 due to the Delta variant, which is two times as contagious as earlier variants, remains predominant in Los Angeles County, and continues to lead to increased infections; and
WHEREAS, public health officials recommend social distancing as a protective measure to decrease the chance of spread of COVID-19; and WHEREAS, at its regular meeting of November 2, 2021, the City Council adopted Resolution No. 9735 authorizing the City Council and all legislative bodies and committees of the City to meet by teleconference; and
WHEREAS, Government Code Section 54953(e)(3) requires an agency to reconsider the circumstances of the state of emergency and make certain findings every thirty days in order to continue to conduct remote teleconference meetings pursuant to Section 54953(e).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS DOES HEREBY RESOLVE that:

1. The City Council has reconsidered the circumstances of the state of emergency and finds that the state of emergency continues to directly impact the ability of its members to meet safely in person.

2. The City Council and all legislative bodies and committees of the City are authorized to meet by teleconference pursuant to, and in compliance with the requirements of, Government Code section 54953(e).

APPROVED:

ITEM NO.:
2 RESOLUTION NO. 9749
APPROVED and ADOPTED this 1st day of March, 2022 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Annette Rodriguez, Mayor
ATTEST:
__________________________
Janet Martinez, CMC, City Clerk
City of Santa Fe Springs
City Council Meeting March 1, 2022
Report Submitted By: Noe Negrete Date of Report: February 25, 2022 Director of Public Works

CONSENT AGENDA
Resolution No. 9764 – Ordering the Preparation of the Engineer’s Report for Fiscal Year 2022/23 in Conjunction with the Annual Levy of Assessments for Street Lighting District No. 1

BACKGROUND
The City of Santa Fe Springs formed the Lighting District No. 1 on May 26, 1982, according to the provisions of the Landscaping and Lighting Act of 1972. However, to levy the assessments against the properties located within the Lighting District on an annual basis, it is necessary for the City to prepare an Engineer’s Report for the Lighting District.

The required documents that meet the legal requirements are outlined in Chapter 3 of the Landscaping and Lighting Act of 1972, as contained in the Streets and Highways Code.

The approval of Resolution No. 9764, orders the preparation of cost estimate, assessment diagram, assessment, and Engineer’s Report for the annual update of the Lighting District.

Raymond R. Cruz
City Manager
Attachments:

Exhibit No. 1: Resolution No. 9764
Exhibit No. 2: Boundary Map

RECOMMENDATION
 Adopt Resolution No. 9764, ordering the preparation of the Engineer’s Report for Fiscal Year 2022/23 in conjunction with the annual levy of assessments for Street Lighting District No. 1.

ITEM NO. 8D
APPROVED:

ITEM NO.:

RESOLUTION NO. 9764

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS, CALIFORNIA ORDERING THE PREPARATION OF THE ENGINEER’S REPORT FOR FISCAL YEAR 2022/23 IN CONJUNCTION WITH THE ANNUAL UPDATE FOR STREET LIGHTING DISTRICT NO. 1
WHEREAS, the City Council of the City of Santa Fe Springs, California, desires to initiate proceedings for the annual levy of assessments for a street lighting district pursuant to the terms and provisions of the "Landscaping and Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California, in what is known and designated as

CITY OF SANTA FE SPRINGS
LIGHTING DISTRICT NO. 1
(Hereinafter referred to as the "District"); and,
WHEREAS, these proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1, 2022 and ending June 30, 2023; and, WHEREAS, there has been submitted to this City Council, for its consideration at this time, a map showing the boundaries of the area affected by the levy of the assessment for the above referenced fiscal year, said map further showing and describing in general the works of improvement proposed to be maintained in said District, and description being sufficient to identify the works of improvement and the areas proposed to be assessed for said maintenance thereof; and
WHEREAS, the provisions of said Division 15, Part 2 require a written "Report" consisting of the following:

1. Plans and specifications of the area of the work improvement to be maintained; and

2. An estimate of the costs for maintaining the improvements for the above referenced fiscal year; and

3. A diagram of the area proposed to be assessed; and

4. An assessment of the estimated costs for maintenance work for said fiscal year.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1: That the above recitals are true and correct.

Section 2: That a map entitled "City of Santa Fe Springs Lighting District No. 1 Annual Levy" as submitted to this City Council, showing the boundaries of the proposed 2 area to be assessed and showing the work of improvement to be maintained, and a copy is on file in the Office of the City Clerk and open to public inspection. The proposed parcels and properties within said area are those to be assessed to pay certain costs and expenses for said maintenance work.

Section 3: That the proposed maintenance work within the area proposed to be assessed shall be for certain street lighting improvements, as said maintenance work is set forth in the "Report" to be presented to this City Council for consideration.

Section 4: That Noe Negrete, City Engineer, is hereby ordered to prepare and file with this City Council, a "Report" relating to said annual assessment and levy in accordance with the provisions of Article IV, commencing with Section 22565 of Chapter 1 of the Streets and Highways Code of the State of California.

Section 5: That, upon completion, said "Report" shall be filed with the City Clerk who shall then submit the same to this City Council for its consideration pursuant to section 22623 and 22624 of said Streets and Highways Code.

Section 6: That the City Clerk shall certify to the adoption of this resolution.

APPROVED and ADOPTED this 1st day of March, 2022.
_______________________________
Annette Roddriguez, Mayor
ATTEST:
_______________________________
Janet Martinez, CMC, City Clerk

CITY OF SANTA FE SPRINGS
LIGHTING DISTRICT NO. 1

ANNUAL LEW
City of Santa Fe Springs
City Council Meeting March 1, 2022
Report Submitted By: Noe Negrete Date of Report: February 25, 2022 Director of Public Works

CONSENT AGENDA
Resolution No. 9765 – Ordering the Preparation of the Engineer’s Report for Fiscal Year 2022/23 in Conjunction with the Annual Levy of Assessments for Heritage Springs Assessment District No. 2001-01 (Hawkins Street and Palm Drive)

BACKGROUND
The Heritage Springs Assessment District was established in May 2001, according to the Municipal Improvements Act of 1913 (Division 12 of the California Streets and Highway Code), to finance the acquisition of various public improvements required for the development of the District.

The District also included a mechanism to provide funding on an annual basis for ongoing street maintenance to include slurry sealing, street resurfacing and street reconstruction as needed. The requirement for a street maintenance district component was a condition of approval for the development. The two streets within the Heritage Springs Assessment District, Palm Drive and Hawkins Street were last slurry-sealed in Fiscal Year 2017/18.

The approval of Resolution No. 9765, orders the preparation of plans, specifications, cost estimates, assessment diagram, assessment, and the Engineer’s Report for the annual update of the Assessment District.

Raymond R. Cruz
City Manager
Attachments:

Exhibit No. 1: Resolution No. 9765
Exhibit No. 2: Boundary Map

RECOMMENDATION
 Adopt Resolution No. 9765, ordering the preparation of the Engineer’s Report for Fiscal Year 2022/23 in conjunction with the annual levy of assessments for Heritage Springs Assessment District No. 2001-01 (Hawkins Street and Palm Drive).

ITEM NO. 8E
APPROVED:

ITEM NO.:

RESOLUTION NO. 9765

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS, CALIFORNIA ORDERING THE PREPARATION OF THE ENGINEER’S REPORT FOR FISCAL YEAR 2022/23 IN CONJUNCTION WITH THE ANNUAL UPDATE FOR HERITAGE SPRINGS ASSESSMENT DISTRICT NO. 2001-01 (HAWKINS STREET

AND PALM DRIVE)
WHEREAS, the City Council of the City of Santa Fe Springs, California, desires to initiate proceedings for the annual levy of assessments for an assessment district established in May 2001, pursuant to the Municipal Improvements Act of 1913 (Division 12 of the California Streets and Highways Code.)

CITY OF SANTA FE SPRINGS
HERITAGE SPRINGS ASSESSMENT DISTRICT NO. 2001-01
(HAWKINS STREET AND PALM DRIVE)
(Hereinafter referred to as the "District"); and,
WHEREAS, these proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1, 2022 and ending June 30, 2023; and, WHEREAS, there has been submitted to this City Council, for its consideration at this time, a map showing the boundaries of the area affected by the levy of the assessment for the above referenced fiscal year, said map further showing and describing in general the works of improvement proposed to be maintained in said District, and description being sufficient to identify the works of improvement and the areas proposed to be assessed for said maintenance thereof; and
WHEREAS, the provisions of said Division 12 require a written "Report" consisting of the following:

1. Plans and specifications of the area of the work improvement to be maintained; and

2. An estimate of the costs for maintaining the improvements for the above referenced fiscal year; and

3. A diagram of the area proposed to be assessed; and

4. A proposed assessment of the estimated costs for maintenance work for said fiscal year.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA FE SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1: That the above recitals are true and correct. 2 Section 2: That a map entitled "Boundary Map Heritage Springs Assessment District No. 2001-01" as submitted to this City Council, showing the boundaries of the proposed area to be assessed and showing the work of improvement to be maintained and a copy is on file in the Office of the City Clerk and open to public inspection. The proposed parcels and properties within said area are those to be assessed to pay certain costs and expenses for said maintenance work.

Section 3: That the proposed maintenance work within the area proposed to be assessed shall be for certain improvements, as said maintenance work is set forth in the "Report" to be presented to this City Council for consideration.

Section 4: That Noe Negrete, City Engineer, is hereby ordered to prepare and file with this City Council, a "Report" relating to said annual assessment and levy in accordance with the provisions of Municipal Improvements Act of 1913 (Division 12 of the California Streets and Highway Code).

Section 5: That, upon completion, said "Report" shall be filed with the City Clerk who shall then submit the same to this City Council for its consideration pursuant to section 10203 and 10204 of said Streets and Highways Code.

Section 6: That the City Clerk shall certify to the adoption of this resolution.

APPROVED and ADOPTED this 1st day of March, 2022.
_______________________________
Annette Rodriguez, Mayor
ATTEST:
_______________________________
Janet Martinez, CMC, City Clerk

City of Santa Fe Springs
City Council Meeting March 1, 2022
Report Submitted By: Noe Negrete Date of Report: February 25, 2022 Director of Public Works

CONSENT AGENDA
Catch Basin Maintenance Services – Renewal of Contract

BACKGROUND
At the March 16, 2021 Council meeting, Ron’s Maintenance, Inc. (RMI) entered into a contract with the City of Santa Fe Springs to provide catch basin maintenance services.

The City has approximately 397 catch basins within its boundaries. These catch basins are required to be regularly inspected and cleaned to ensure proper operation of the drainage system and protect water quality. The City is responsible for maintaining all catch basins within the City’s boundaries and service them a minimum of three times during the wet season (October through April) and once during the dry season (May through September).

The annual cost to perform the catch basin inspection and cleaning by Ron’s Maintenance Inc. is $31,760. The contract allows for two one-year renewals at the same annual cost, pending Council approval. Staff recommends renewing the contract for an additional year, since the work performed last year was satisfactory and in compliance with the MS4 permit. Renewing the contract with RMI will ensure that the catch basins operate at maximum efficiency and protect water quality.

LEGAL REVIEW
The City Attorney’s office has reviewed the Catch Basin agreement which allows for two one year renewals. This will be the first renewal if approved by Council.

FISCAL IMPACT
Catch basin cleaning and inspections is budgeted within the Public Works Operation and Maintenance Fiscal Year 2021/2022 budget There is sufficient funding available within the budget to cover the annual contract amount of $31,760.

INFRASTRUCTURE IMPACT
Catch basin inspection and cleaning will provide improved street drainage and ensure compliance with the City's MS4 permit and all other storm drain regulations.

Raymond R. Cruz
City Manager
Attachments:

Exhibit No. 1: Agreement

RECOMMENDATION
 Renew the contract for an additional year with Ron's Maintenance, Inc. for Catch Basin Inspection and Cleaning, for an amount not to exceed $31,760.

ITEM NO. 8F
DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD 5/5/2021
DocuSign Envelope ID: B8CC330E-DA6C-4113-A51C-364D263547BD City Council Meeting March 1, 2022
Report Submitted By: Travis Hickey Date of Report: February 25, 2022 Finance & Administrative Services
City of Santa Fe Springs

CONSENT AGENDA
Meeting Report from the January 27, 2022 Meeting of the Audit/Finance Subcommittee

BACKGROUND
In keeping with best practices, the City has established a standing Audit/Finance Subcommittee to engage with the City’s independent financial auditors as well as to provide staff with feedback and direction on finance related issues. The Audit/Finance Sub-committee currently consists of Councilmembers Mora and Trujillo.

An Audit/Finance Sub-committee meeting was held on January 27, 2022. The meeting was attended by Councilmembers Mora and Trujillo, City Manager Ray Cruz, Director of Finance & Administrative Services Travis Hickey, Finance Manager Lana Dich, and the City’s independent auditor Mr. Nitin Patel and audit manager Tiffany Fung of CliftonLarsonAllen LLP (“CLA”).

The following items were discussed during the meeting:

1. The minutes of the August 31, 2021 meeting were approved as presented.

2. The Annual Comprehensive Financial Report (“ACFR”) for the year ended June 30, 2021 was discussed. Mr. Patel gave a brief presentation of the audit results and overview of the audit process. Mr. Patel also discussed the various opinions and reports issued by CLA in connection with the audit. There were questions and discussion between the Sub-committee members, staff, and the auditor related to the audit results.

3. The meeting schedule for the Audit/Finance Sub-committee was discussed with direction from the Sub-committee members to schedule meetings on an as-needed basis.

FISCAL IMPACT
None.

Raymond R. Cruz
City Manager

RECOMMENDATION
Receive and file the meeting report from the January 27, 2022 meeting of the Audit/Finance Sub-committee.

ITEM NO. 8G
City Council Meeting March 1, 2022
Report Submitted By: Ivy M. Tsai, City Attorney Date of Report: February 25, 2022 City of Santa Fe Springs

CONSENT AGENDA
Government Tort Claim Denial – BNSF Railway Company

BACKGROUND
On January 20, 2022, the City received a government tort claim from BNSF Railway Company (attached; full claim with exhibits is available at the City Clerk’s office). This type of claim is not handled by the California Joint Powers Insurance Authority. It is recommended that the City Council deny the claim and authorize the Municipal Affairs Manager or designee to send a denial letter in a form approved by the City Attorney’s office.

Raymond R. Cruz
City Manager
Attachment:

Government Tort Claim from BNSF Railway Company

RECOMMENDATION
 Deny the government tort claim from BNSF Railway Company and authorize the Municipal Affairs Manager or designee to send a denial letter in a form approved by the City Attorney’s office.

ITEM NO. 8H

City of Santa Fe Springs
City Council Meeting March 1, 2022
Report Submitted By: Vince Velasco Date of Report: February 25, 2022 Planning and Development Dept.

PUBLIC HEARING (Continued from January 18, 2022 City Council Meeting) Consideration of an appeal of Development Plan Approval Case No. 980 and related Environmental Documents (Initial Study/Mitigated Negative Declaration) Development Plan Approval (DPA 980)
A request for approval to allow the construction of a new ±144,434 sq. ft. concrete tiltup industrial building and related improvements on property located at 11401 Greenstone Avenue (APN: 8026-018-023) within the M-2, Heavy Manufacturing, Zone. (Greenstone SFS, LLC)
On July 22, 2021, the City Clerk’s office received a formal appeal of the Planning Commission’s actions relating to Development Plan Approval Case No. 980 for a new ±144,434 sq. ft. concrete tilt-up industrial building and related improvements at 11401 Greenstone Avenue. The subject appeal was noticed in the Whittier Daily News on July 30, 2021 in anticipation of presenting the matter to the City Council at its regularly scheduled meeting of August 17, 2021. In addition, legal notice of the public hearing was mailed to all property owners within 500 feet of the exterior boundaries of the subject property and also posted at Santa Fe Springs City Hall, the City Library and City’s Town Center Kiosk.

On August 16, 2021, the appellant (Supporters Alliance for Environmental Responsibility) sent an email to the Mayor, members of the City Council, and staff, detailing the reason for their concerns with the Mitigated Negative Declaration and why they believed that an EIR was required. On August 17, 2021, staff recommended that the City Council continue the matter in light of the e-mail received and to allow staff sufficient time to review and evaluate its contents, and the City Council unanimously voted to continue the appeal matter to September 7, 2021. By the September 7, 2021 City Council Meeting, the City’s environmental consultant had not yet completed their review. Based on staff’s recommendation to allow additional timing, the City Council unanimously voted to continue the appeal matter to September 20, 2021. Late September 14, 2021, staff received the response to comments from the environmental consultant. To allow staff with additional timing to review the responses, staff recommended a further continuance of the appeal matter. On September 20, 2021, the City Council unanimously voted to continue the appeal matter to October 5, 2021.

At the applicant’s request, to allow sufficient time to complete a thorough review of the response to comments by all parties, staff recommended a further continuance of the appeal matter to the November 2nd City Council Meeting. On October 5, 2021, the City

RECOMMENDATION
 Continue the appeal hearing to the April 5, 2022 City Council Meeting.

ITEM NO. 9
Appeal of DPA 980 & Environmental Documents Page 2 of 2 Report Submitted By: Vince Velasco Date of Report: February 25, 2022 Planning and Development Dept.

Council unanimously voted to continue the appeal matter to November 2, 2021.

Prior to the November 2nd City Council Meeting, the applicant submitted a subsequent request for continuance of the appeal matter to the December 7th City Council Meeting.

On November 2, 2021, the City Council unanimously voted to continue the appeal matter to December 7, 2021.

On November 22, 2021, the applicant requested to continue the appeal matter until after the holiday season. At their meeting on December 7, 2021, the City Council unanimously voted to continue the appeal matter until January 18, 2022.

On January 6, 2022, the applicant requested to further continuance of the appeal matter. To allow the applicant additional time to complete their response to comment letter and also allow staff adequate review time, staff is recommending that the City Council continue this matter until March 1, 2022.

At their meeting on January 18, 2022, the City Council unanimously voted to continue the appeal matter to March 1, 2022. On February 10, 2022, the applicant provided staff with their response to comment letter. On February 15, 2022, the City’s environmental consultant also provided an additional response to comment letter. To allow staff time to review said materials and prepare all necessary reports, staff is recommending that the City Council continue this matter until April 5, 2022.

Raymond R. Cruz
City Manager
City Council Meeting March 1, 2022
Report Submitted By: Travis Hickey & Lana Dich Date of Report: February 25, 2022 Finance and Administrative Services
City of Santa Fe Springs

NEW BUSINESS
Presentation and Consideration of the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2021

BACKGROUND
Each year, the City engages an independent financial auditor to audit the City’s financial statements, known as the Annual Comprehensive Financial Report (“ACFR”). The purpose of the City's ACFR is to provide, independently audited, relevant financial information to the City Council, citizens, staff, grant entities, creditors, bond investors, rating agencies, and other concerned readers.

The City’s financial statements contained within the ACFR are presented in conformity with generally accepted accounting principles (“GAAP”) and audited in accordance with generally accepted governmental auditing standards (“GAGAS”).

The statements are reported on a fiscal year basis beginning July 1st and ending June 30th and have been audited by an independent firm of certified public accountants, CliftonLarsonAllen LLP (“CLA”) to provide reasonable assurance that the financial statements fairly present the City’s financial condition in all material respects.

In keeping with best practices, the City Council has formed an Audit/Finance Subcommittee. Its members, Councilmember Mora and Councilmember Trujillo, met with staff and CLA on January 27, 2022 to discuss the results of the annual audit.

This is CLA’s second year auditing the City after being selected through a comprehensive procurement process in the summer of 2020.

As required by GAGAS, CLA has also issued an Audit Communication Letter summarizing the results of the audit and a Report on Internal Control and Compliance. These reports, included here as attachment #2 and #3, identify conditions noted by the auditor which were discussed in detail with the Audit/Finance Sub-committee.

Overall, the City’s General Fund Unassigned Reserve balance increased approximately $0.8 million from $24.1 million at June 30, 2020 to $24.9 million at June 30, 2021. In addition, the City’s General Fund Economic Uncertainty Reserve balance was $6.1 million and Unfunded Liability Reserve was $15.9 million at June 30, 2021.

RECOMMENDATION
Receive and file the City’s Annual Comprehensive Financial Report for the Fiscal Year ending June 30, 2021 and related communications.

ITEM NO. 10
City Council Meeting March 1, 2022
Report Submitted By: Travis Hickey & Lana Dich Date of Report: February 25, 2022 Finance and Administrative Services
City of Santa Fe Springs
In the Water Fund, the Unrestricted Net Assets decreased approximately $309,000 from a surplus of $527,000 million at June 30, 2020 to $218,000 at June 30, 2021.

Attached are the City’s ACFR, Audit Communications Letter, and Report on Internal Control and Compliance.

FISCAL IMPACT
None.

Raymond R. Cruz
City Manager
Attachments:

1. Final audited FY 2020-2021 Comprehensive Annual Financial Report

2. Audit Communication Letter

3. Report on Internal Controls and Compliance

CITY OF SANTA FE SPRINGS, CA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
JULY 1, 2020 TO JUNE 30, 2021
WWW.SANTAFESPRINGS.ORG
Comprehensive Annual
Financial Report
City of Santa Fe Springs, CA
Year Ended June 30, 2021
City Council
Annette Rodriguez, Mayor
Joe Angel Zamora, Mayor Pro-Tem
John M. Mora, Councilmember
Jay Sarno, Councilmember
Juanita Trujillo, Councilmember
Planning Commission Traffic Commission
Ken Arnold Bryan Collins
Francis Carbajal Felix Miranda
Gabriel Jimenez Linda Vallejo
William K. Rounds Johana Coca
Johnny Hernandez Christina Colón
Executive Management Team Prepared by:

Raymond R. Cruz, City Manager Travis Hickey, Dir. of Fin. and Admn. Svcs Ivy M. Tsai, City Attorney Lana Dich, Finance Manager
Travis Hickey, Dir. of Fin. and Admn. Svcs Alvaro Castellon, Senior Budget Analyst Maricela Balderas, Dir. of Com. Services Donna Mack, Accountant Brent Hayward, Fire Chief Erlinda Gutierrez, Accountant Wayne Morrell, Director of Planning Michelle Prieto, Administrative Assistant II Noe Negrete, Director of Public Works
Dino Torres, Director of Police Services

CITY OF SANTA FE SPRINGS, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

PREPARED BY FINANCE DEPARTMENT

CITY OF SANTA FE SPRINGS, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

INTRODUCTORY SECTION
Letter of Transmittal i
Organizational Chart xxiii
GFOA Certificate of Achievement for Excellent in Financial Reporting xxiv

FINANCIAL SECTION
Independent Auditors’ Report 1
Management’s Discussion and Analysis (Required Supplementary Information – Unaudited) 5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements
Balance Sheet — Governmental Funds 16
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 18
Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds 20
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Statement of Net Position — Proprietary Funds 23
Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds 24
Statement of Cash Flows — Proprietary Funds 25
Statement of Net Position — Fiduciary Funds 26
Statement of Changes in Net Position — Fiduciary Funds 27 Notes to Basic Financial Statements 29

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Budgetary Comparison Schedule — General Fund 76
Budgetary Comparison Schedule — Low and Moderate Income Housing Assets Fund 77
Schedule of Changes in Net Pension Liability and Related Ratios — Miscellaneous Plan — Agent Multiple-Employer Plan 78
Schedule of Plan Contributions — Miscellaneous Plan — Agent MultipleEmployer Plan 80 Schedule of Proportionate Share of the Net Pension Liability — Cost Sharing Safety Plan 82

CITY OF SANTA FE SPRINGS, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
Schedule of Plan Contributions — Cost Sharing Safety Plan 84 Schedule of Changes in the Net OPEB Liability and Related Ratios 86 Schedule of Contributions — OPEB 87
Notes to Required Supplementary Information 88

SUPPLEMENTARY INFORMATION
Combining Balance Sheet — Nonmajor Governmental Funds 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds 96
Budgetary Comparison Schedules — Special Revenue Funds
State Gas Tax 100
County Transit Tax 101
Street Lighting Maintenance District 102
Art in Public Places 103
Air Quality Improvement 104
Community Development Block Grant 105
Public Safety Augmentation 106
Supplemental Law Enforcement Services 107
Combining Statement of Fiduciary Net Position — Custodial Funds 110 Combining Statement of Changes in Fiduciary Net Position — Custodial Funds 111

STATISTICAL SECTION (UNAUDITED)
Net Position by Component 114
Changes in Net Position 116
Fund Balances of Governmental Funds 120
Changes in Fund Balances of Governmental Funds 122
Assessed and Estimated Actual Value of Taxable Property 124 Direct and Overlapping Property Tax Rates 125
Principal Property Tax Payers 126
Property Tax Levies and Collections 127
Ratios of Outstanding Debt by Type 128
Ratio of General Bonded Debt Outstanding 129
Direct and Overlapping Debt 130
Legal Debt Margin Information 131
Pledged-Revenue Coverage 134

CITY OF SANTA FE SPRINGS, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
Demographic and Economic Statistics 136
Principal Employers 137
Full-Time and Part-Time City Employees by Function 138
Operating Indicators by Function 139
Capital Asset Statistics by Function 140
(This page intentionally left blank)
(i)
January 27, 2022
Honorable Mayor & City Council and
Residents of the City of Santa Fe Springs:

Introduction It is our pleasure to submit for your information and consideration the Annual Comprehensive Financial Report of the City of Santa Fe Springs ሺCityሻ. The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City’s Department of Finance and Administrative Services. It is our opinion that the data as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of the various funds; and that all disclosures necessary to enable the reader to gain a full understanding of the financial activities have been included.

The enclosed financial statements are prepared in accordance with Generally Accepted Accounting Principles ሺGAAPሻ as recommended by the Governmental Accounting Standards Board ሺGASBሻ and include the report of the independent certified public accountants, CliftonLarsonAllen LLP. The complete report is divided into distinct sections:

Introduction‐ Letter of transmittal, an organizational chart, and prior year award for financial reporting.

Financial ‐ Independent auditor’s report, Management’s Discussion and Analysis ሺMD&Aሻ, basic financial
statements, accompanying notes to the financial
statements, required supplementary information,
and supplementary information.

MD&A complements this letter of transmittal and
should be read in conjunction with it.

Statistical ‐ Pertinent financial and non‐financial data that present historical trends and other information
about the City.

Annette Rodriguez, Mayor • Joe Angel Zamora, Mayor Pro Tem City Council
John M. Mora • Jay Sarno • Juanita Trujillo
City Manager
Raymond R. Cruz
(ii)
This report presents the financial status of the City and its component units, the Successor Agency to the Community Development Commission, Housing Successor Agency, the Public Financing Authority, and Water Utility Authority as a single reporting entity. Although these component units are legally separate from the City, the City maintains significant financial accountability.

Financial accountability is defined as appointment of a voting majority of the component unit’s board and either ሺAሻ the ability of the primary government to impose its will on the component unit, or ሺBሻ the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government. For detailed information regarding the City and its component units, please refer to Notes to the Financial Statements section in this report.

In developing and modifying the City’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding:
ሺ1ሻThe safeguarding of assets against loss from unauthorized use or disposition; and
ሺ2ሻThe reliability of financial records for preparing financial statements and maintaining accountability for assets.

The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived from it and that the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The accounting system is maintained on a functional basis ሺactivity/sub‐activityሻ in order to reflect the services provided by the City.

The City maintains budgetary controls at the individual fund level to ensure compliance with the budget approved by the City Council. The budget includes estimated revenues and appropriations for the City’s General Fund and certain Special Revenue Funds. Operating plans for the City’s Water Utility Fund are also prepared as part of the budget.

Accounting
System and
Budgetary
Control
Introduction
ሺcont.ሻ
(iii)
The urban development of Santa Fe Springs began in the early 1950’s as the result of a planned effort by a coalition of business community members and local residents. During the ensuing years, community pressures resulted in the incorporation of the City on May 15, 1957. The new City covered 4.9 square miles with a population of 11,787. The City of Santa Fe Springs now encompasses nine square miles, with about 84% of the land zoned for commercial and industrial use. The City’s population is approximately 18,200; however, the daytime population is estimated at 95,000.

The City of Santa Fe Springs operates as a general law city under the council‐ manager form of government. Five City Council members are elected at‐large for alternating four‐year terms. The Mayor is selected annually from among the five members of the City Council. The City Council is responsible for the City’s ordinances, operating resolutions, budget adoption and appointment of committee members. Overall, there are 11 standing committees, boards and commissions that provide input to the City Council. Among these are the Planning Commission and the Traffic Commission. The City Manager is responsible for administering the policies and directives approved by the City Council. The City Manager appoints the Executive Management Team, which is comprised of the Director of Finance & Administrative Services, Fire Chief, Director of Community Services, Director of Planning, Director of Police Services, and Director of Public Works.

Profile and
Government
Structure
(iv)
The City of Santa Fe Springs is strategically located in southeast Los Angeles County with access to major seaports, airports and transportation corridors.

With the vast majority of the City zoned for commercial and industrial use, Santa Fe Springs has historically experienced strong development and redevelopment activity in the community. Sales tax, and utility user’s taxes ሺUTTሻ revenues are the largest sources in the General Fund.

The City’s sales tax base is comprised of businesses within the following categories: Business and Industry ሺManufacturing and business‐to‐ business sellsሻ, Building and Construction, Autos and Transportation, General Consumer Goods, Fuel and Service Stations, Restaurants and Hotels and Food and Drugs.

Close to two‐thirds of the total sales tax revenue is generated by manufacturing and construction businesses. In the past couple of years, the City’s businesses have seen a growth in sales and has translated into increases in the City’s sales tax.

The City’s voters approved the additional 1% transactions and use tax ሺMeasure Yሻ on November 2018, which became effective April 1, 2019. The additional tax has broadened the City’s revenue base and added over $10 million in General Fund revenue.

Although the COVID‐19 pandemic and its economic impact were felt throughout our nation, the City was fortunate that our sales tax base was relatively unaffected by the pandemic as it had little to no effect on the City’s revenue stream. In fact, the Stay‐at‐Home orders generated greater than anticipated online sales which played a pivotal role in the City’s increased sales tax revenue. While the sales tax generated in FY 2019‐20 was the highest the City had ever generated, the sales tax generated in FY 2020‐21 surpassed last year’s amount. The Sales Tax revenue and its growth are critical to the City’s financial position as it represents nearly half of all of the City’s General Fund revenues.

Additionally, this is the second full year of collecting the voter‐approved Transaction & Use Tax ሺMeasure Yሻ and its trend is favorable for the City.

Measure Y has lessened some of the financial burdens that have threatened the City’s strong financial position. Even during a global pandemic, Measure Y continues to be a consistent and reliable stream of revenue for our City. The Sales Tax and Measure Y combined represent 60% of the City’s General Fund revenues.

The City is now in a position to accomplish its long‐term goals given the City’s financial resiliency during the pandemic. This improved financial position has allowed the City to fund several operational needs and will allow the City’s financial position to remain stable barring any unforeseen economic downturns that are out of the City’s control.

Local Economic
Outlook
(v)
The City has a vision statement that affirms: “The City of Santa Fe Springs is a great place to live, work and play,” with the following mission statement: “The City of Santa Fe Springs is committed to enhancing the quality of life of its residents and businesses by providing: a safe environment, a thriving business community, quality family, youth, and senior services, and sound financial management of the community’s resources.” The guiding values are as follows:
 Personal integrity, honesty, and ethics
 Public service
 Compassion
 Responsibility, accessibility, and accountability
 Dedication
Historically, the City has utilized a two‐year operating budget during stable financial times and a six‐year Capital Improvement Program ሺCIPሻ as some of the most significant planning tools to achieve the City’s vision and identified missions. The unprecedented events of recent years necessitated more swift and short‐term actions. In moving past the “Great Recession” and the elimination of redevelopment, the City has begun to re‐establish some of the above long‐range planning tools along with strategic goals that will better guide the City into the future. This includes, as approved by the State, the ability to spend capital funding from previously‐issued tax allocation bonds.

Public safety is the highest priority in the community. This is evidenced by the continued financial commitment provided to both Fire and Police Services. The Fire‐Rescue and Police Services Departments continue to combine their manpower to provide the resources and tools to manage emergency and security issues that may arise in the community and region. The City continues to purchase specialized equipment with the use of grant funding. The following are some of the highlights by department:

Department of Fire‐ Rescue
The Department of Fire‐ Rescue is comprised of 57 members working from four fire stations providing not only the traditional services of fire suppression, hazardous materials response, fire prevention, and emergency medical services, but also a full‐service Environmental Protection Division. The environmental protection and response components are considered model systems in the State of California. The City’s status as a Certified Unified Program Agency ሺCUPAሻ makes Santa Fe Springs a “one‐stop‐shop” in administering all the hazardous materials, hazardous waste, and tank programs in the City. The State has long held the City’s CUPA as one of the most regarded programs in the State. The CUPA Division utilizes the California Environmental Reporting System ሺCERSሻ allowing business residents to file their annual hazardous materials disclosures electronically. The Fire Prevention Division also provides many services, including code enforcement, plan checks, issuing permits, fire investigations, and public education events.

Accomplishments
& Outlook
Vision, Mission,
and Guiding
Values
(vi)
Fire‐Rescue suppression personnel have implemented a business‐friendly fire inspection program to annually inspect each business in the City to identify possible fire and life safety issues as well as update emergency contact information in the department’s database. The Department of Fire Rescue conducted over 2200 business and residential inspections and responded to over 3,500 emergency calls in FY 2021‐21.

The Department of Fire Rescue currently staffs a State Regional Urban Search and Rescue Team ሺUSARሻ designated at the highest level as a “Heavy” rescue team by the Office of Emergency Services ሺOESሻ. Fire‐Rescue also staffs a Type I Hazardous Materials Response Team with all staff trained to the Haz‐Mat “Specialist” level. The City is currently one of only thirty Hazardous Material Teams in the State certified as a Type I Response Team and qualified to mitigate emergencies involving acts of terrorism and weapons of mass destruction. The Department houses and maintains an OES Fire Engine for local and statewide disaster response. The Department continues to support neighboring communities through the California Master Mutual Aid Agreement in response to major disasters and emergencies including brush fires, landslides, earthquakes, acts of terrorism, major disasters, etc. In FY 2020‐21, the Department of Fire‐Rescue assisted outside of their jurisdiction 14 times to major fire incidents and was reimbursed over $967,000 in backfill expenses for labor to respond to these incidents.

The department, in partnership with Rio Hondo College, continues to manage the Regional Homeland Security Training Center located directly adjacent to the Headquarters’ Fire Station. This state of‐the‐art facility was built with grant funding for the purpose of assisting local fire and police agencies in increasing awareness and training regarding terrorist activity including building collapse, hazardous materials, rail car incidents, confined space, trench rescue, etc. The center has been recognized by the California State Training Institute ሺCSTIሻ as the primary training center for Hazardous Material Specialists Training in Southern California.

In FY 2020‐21, the Fire‐Rescue Department secured $504,413 through the 2018 State of Homeland Security Grant Program ሺSHSGPሻ. This funding supports the purchase of equipment and training for the Homeland Regional Training Center, the City’s Type I Hazardous Materials Response Team, and the City’s Urban Search and Rescue ሺUSARሻ Response Team. As in the past years, the use of grant funds has provided relief to the City budget as these vehicles, equipment, and training would typically have been funded through the City’s General Fund.

Accomplishments
& Outlook ሺcont.ሻ
(vii)
Department of Police Services
Since October of 1995, the Department of Police Services has partnered with the Whittier Police Department to deliver quality law enforcement services by combining Whittier Police Department’s contract services with City staff and management resources. The Santa Fe Springs Policing Team consisting of both sworn and non‐sworn personnel responds to citizen calls for service and focuses on developing solutions to address community defined law enforcement issues and service needs. The team also focuses on preventing youth from engaging in delinquent behavior and effectively maintains a safe and desirable and working environment for the City of Santa Fe Springs by focusing on quality of life issues affecting the community.

Community‐Police partnerships are essential in establishing trust, maintaining support and meeting the needs and expectations of our citizens. A proactive Community Oriented Policing approach has led to the development and implementation of many unique and effective public safety programs. A key component to success lies with maintaining multi‐agency partnerships and establishing a mutual trust and support between citizens, business community and intergovernmental agencies.

During FY 2020‐2021, the Department of Police Services continued to strive toward keeping crime and property loss rates at the lowest possible levels, maintain acceptable response times for emergency service calls, promote the use of technology, and promote coordination between schools and the City.

The policing team focused on enhancing community partnerships by providing a variety of programs, services and tools designed to deter and reduce crime, assist families with at‐risk youth, and maintain the safety and well‐being of all citizens within the community. Some of the Department efforts and accomplishments included:
 Whittier Police Department Officers responded to 13,223 calls for service throughout the City and provided 2,656 pro‐active patrols.

Additionally, a dedicated Traffic Enforcement Officer focused on traffic and pedestrian safety and field patrol officers responded to 3,062 traffic related incidents. Police officers also responded to several incidents involving Driving Under the Influence ሺDUIሻ violations and issued 35 citations for DUI.
 The Investigative Bureau made arrests in three homicide cases that were investigated.
 In an effort to increase traffic safety, the department focused on traffic enforcement operations and proactive traffic enforcement.

Over 600 hours were dedicated to traffic enforcement details, which yielded 946 citations and 223 warnings issued for various violations such as distracted driving, unsafe speed, and disobeying signage.

Accomplishments
& Outlook ሺcont.ሻ
(viii)
 Officers also remained dedicated to monitoring high collision intersections. Enforcement efforts resulted in 1,563 moving citations, 1,928 moving violations and 1,456 citations were issue for hazardous violations including, but not limited to red light violations, unsafe speed and unsafe movements.
 Public Safety Officers ሺPSOsሻ played a critical role in the department field operations. PSOs responded to approximately 1,959 calls for service and provided 2,157pro‐active patrols throughout the City.

Calls for service included, but were not limited to parking violations, graffiti vandalism, safety hazards, non‐criminal and criminal reports and other quality of life issue concerns. A total of 4,111 parking citations were issued.
 PSOs responded to 105 traffic collision related incidents; leaving sworn personnel available to respond to emergent calls for service and reducing overall response times for priority calls.  The department continues to subscribe to Crimereports.com; providing citizens with access to up‐to date city crime statistics.  Technological upgrades to improve efficiency were also an area of focus including the purchase of replacement Mobile Data Computers ሺMDCsሻ for public safety officer and police patrol vehicles. The new system provides enhanced mobile options for report writing, sharing and documenting crime‐related information, and photographic evidence collection.
 The Family and Youth Intervention ሺFYIPሻ Team identified and worked with families experiencing relationship, behavioral challenges and youth engaging in delinquent behavior. Individual case plans were developed and services were coordinated.

Additionally, 71 local families completed parenting and family support classes.
 The Family and Youth Intervention Team continued to navigate through the unique challenges presented by the COVID‐19 pandemic.

The team continued to successfully serve the community by offering programs and services via virtual format.
 The Department and FYIP team remained dedicated to providing drug awareness and prevention education through partnerships with local schools through the Red Ribbon Campaign. The FYIP team worked with City leaders and schools to promote the Red Ribbon Campaign via social media platforms and school district websites.  This year, the “Every 15 Minutes” Program was delivered via virtual format. In partnership with Santa Fe High School administration, a powerful message was delivered by the City Council and youth were reminded about the consequences of drinking and driving and the impact of poor decision making.
 The department emphasized crime prevention and disaster preparedness through the Safe Neighborhood Team ሺSNTሻ. Meetings were held bi‐monthly throughout the year. Residents came together to learn and discuss crime prevention tips and strategies, crime Accomplishments
& Outlook ሺcont.ሻ
(ix)
trends, disaster preparedness, and share their public safety concerns in a public forum. Although the COVID‐19 pandemic created challenges to host traditional in person meetings, SNT successfully transitioned to a virtual format.
 As part of the department’s emergency preparedness effort to raise awareness on the importance of having an emergency preparedness plan and practice safety during an earthquake, the Department led City staff as they participated the “Great Shake Out” earthquake drill.  The Department partnered with the Southeast Area Animal Control Authority to address unlicensed animals in the City through the annual dog licensing canvass. Animal Control Officers canvassed residential areas in the City and issued 368 animal license notices and issued 93 licenses in the field.

Code Enforcement is another significant component of the Department of Police Services that is responsible for enforcing Santa Fe Springs Municipal codes that relate to residential and business property maintenance standards, including business licensing. Code Enforcement Inspectors also enforce building, health and safety standards related to environmental protection and neighborhood preservation. The Division works closely with all City departments to ensure community needs are met.

Code Enforcement activity for FY 2020‐2021, included 192 new code enforcement cases initiated to address numerous violations related to property maintenance concerns, illegal garage conversions, illegal structures, hazardous property conditions, illegal business operations, inoperable and abandoned vehicles, and illegal land use activity. Through voluntarily compliance and enforcement efforts, 185 cases were successfully closed.

Additional Code Enforcement activity included:
 Proactively identified and coordinated outreach and the cleanup of homeless encampments located on City property. In addition, the team partnered with BNSF, Union Pacific Railroad, LA County Public Works, the LA County Sheriff’s Department and business owners to assist with several homeless encampment cleanups on private property. Although, these homeless encampments were located on outside agency property, they ran through our jurisdiction and negatively impacted the residential and business community.  Code enforcement officers issued 249 Notice of Violations and 58 Administrative Citations for various code violations.
 Code Enforcement staff also worked with the Whittier Police Department’s Special Enforcement Team ሺSETሻ and Detective Bureau to address illegal marijuana grow operations in residential and industrial areas and successfully closed down illegal dispensaries, seizing over 1, 500 plants as evidence.

Accomplishments
& Outlook ሺcont.ሻ
(x)
 Staff assisted the Fire Department with compliance inspections and addressing non‐compliant businesses.
 Code Enforcement Staff processed Alcohol Sales Conditional Use Permits and Compliance Reviews.
 Staff continued to work closely with the Planning Department to identity potential impacts and mitigate hazards of new and existing development by developing conditions of approval related to public safety concerns.

Department of Public Works
The City’s Department of Public Works is responsible for efficiently developing, constructing and maintaining the City’s infrastructure. The infrastructure consists of streets, facilities, parks, fleet, traffic signals and street lighting, and water distribution system. This encompasses routine and preventive maintenance items as well as responding to numerous citizen requests for service. The City prides itself in having a functional and well‐ maintained infrastructure that the community can enjoy.

The Engineering Division is responsible for the administration of the Capital Improvement Program ሺCIPሻ, working closely with the Council CIP Subcommittee. In addition, traffic engineering and development review services are provided within the Engineering Division. In FY 2020‐21, the Engineering Division issued 415 total excavation and construction permits.

During FY 2020‐21, the Department of Public Works coordinated a multitude of capital improvement projects including:
 Traffic Signal at Florence Ave / Ringwood Ave
 Three Year Street Improvement Plan ‐ Year 2
o Santa Fe Springs Road ሺLos Nietos Road to North Boundary RXR Tracksሻ
o Rivera Road ሺSorensen Avenue to East Boundary
o Ann Street ሺSorensen Avenue to Santa Fe Springs Roadሻ o Painter Avenue ሺLakeland Road to Florence Avenue
 Three Year Street Improvement Plan ‐ Year 3
o Los Nietos Road ሺTelegraph Road to Pioneer Boulevardሻ o Lakeland Road ሺShoemaker Road to Carmenita Roadሻ
o Meyer Road ሺEast Boundary to Shoemaker Roadሻ
 Whittier Water Connection Design Project
 Florence Ave Widening ሺOrr and Day Rd to Pioneer Blvdሻ Accomplishments
& Outlook ሺcont.ሻ
(xi)
 Replacement of Baseball/Basketball Scoreboards, Backboards/Rims at Various City Parks
Department of Planning and Development
The Planning and Development Department is responsible for economic development ሺcreating, retaining, attracting and expanding the business communityሻ, planning ሺboth current and long‐range planningሻ, building ሺmanaging the plan check process, issuing permits, and conducting inspectionsሻ, and housing ሺimproving the quality of our neighborhoods and providing affordable housing optionsሻ. Through the regulation of land use and development, the Department of Planning and Development continually strives to protect and enhance the City’s environment and quality of life, resulting in a diverse and livable community where residents, businesses, and visitors can thrive.

It should be noted that due to lasting effects of the pandemic, the statistical data collected is not as complete as previous years. Moving forward, as the impacts from COVID‐19 dissipates, we expect the data to return to normal and have statistics consistent with previous years, prior to the pandemic. The department remains committed to playing a prominent role in shaping the community through citywide high‐quality standards and to preserve and cultivate smart and sustainable growth of the City’s residential, commercial, and industrial areas.

Economic Development Activities
During FY 2020‐2021, economic development efforts resulted in several notable business accomplishments: the welcoming of 4 Paws Coffee Company at 14565 Valley View Avenue; Golden Spoon frozen yogurt at the 10122 Carmenita Road; The Green Olive restaurant at 13965 Stage Road; Fairway Staffing at 11429 Telegraph Road; and Sunbelt Rentals at 12624 Rosecrans, just to name a few. And to help support various new and growing businesses, city staff is committed to ongoing efforts to promote them within the City’s newsletters and various social media outlets. Staff is constantly working with property owners, property management companies and developers to revitalize aging commercial properties to find opportunities to grow the City’s retail and hospitality base. Part of the process is working collaboratively with property owners and developers to find solutions and ultimately a pathway to yes!
Planning Activities
During FY 2020‐2021, a total of 54 planning entitlements were presented to the Planning Commission for consideration. Entitlements include, but are not limited to, conditional use permits, development plan approvals, zone variances, general plan amendments, zone changes, modifications, tentative parcel maps, and code amendments. Additionally, 15 administrative entitlements were processed for wireless projects.

Accomplishments
& Outlook ሺcont.ሻ
(xii)
Some notable planning milestones during the 2020‐2021 fiscal year included the completion of the following construction projects: 1ሻ a new 233,779 sq. ft. industrial concrete tilt‐up building at 8201 Sorensen Avenue; 2ሻ exterior and interior renovations to a 3,240 sq. ft. building at 10915 Norwalk Blvd.; 3ሻ exterior façade improvements to a 12,474 sq. ft. existing building at 11640 Slauson Avenue; and 4ሻ a new two story 8,022 sq. ft. industrial concrete tilt‐up building at 11908 Bloomfield Avenue. Also, seven notable development projects are currently under construction: 1ሻ a new 3‐story 97,503 sq. ft. mini‐ warehouse at 13020 Telegraph Road; 2ሻ a new 43,905 sq. ft. industrial concrete tilt‐up building at 12905 Los Nietos Road; 3ሻ a new 131,708 sq. ft. industrial concrete tilt‐up building at 9816 Greenleaf Avenue; 4ሻ a new 150,548 sq. ft. industrial concrete tilt‐up building at 13900 Carmenita Road; 5ሻ a new 146,068 sq. ft. industrial concrete tilt‐up building at 13215 Cambridge Street; 6ሻ a new 213,956 sq. ft. industrial concrete tilt‐up building at 9951 Greenleaf Avenue; and 7ሻ a gated apartment complex totaling approximately 174,201 sq. ft. at 11201‐11313 Carmenita Road. Although not yet under construction, there were also three notable entitlements granted during the 2020‐2021 fiscal year that will result in future development: 1ሻ new commercial building with a drive‐thru measuring 2,370 sq. ft. at 10712 Laurel Avenue; 2ሻ new multi‐tenant commercial building measuring between 5,452 to 7,260 sq. ft. at 10712 Laurel Avenue; 3ሻ new industrial development with four concrete tilt‐up industrial buildings measuring 58,463 sq. ft., 60,117 sq. ft., 78,417 sq. ft. and 121,124 sq. ft., respectively, at the northwest corner of Telegraph Road and Santa Fe Springs Road; 4ሻ a new 199,987 sq. ft. industrial concrete tilt‐up building at 9615 Norwalk Boulevard; 5ሻ a new 92,771 sq. ft. concrete tilt‐up industrial building at 12511 & 12521 Los Nietos Road; 6ሻ a new 2,675 sq. ft. single‐story office building at 9803 Santa Fe Springs Road; 7ሻ a new 12,731 sq. ft. multi‐tenant industrial building at 11790 Slauson Avenue; and 8ሻ a new 144,434 sq. ft. concrete tilt‐up industrial building at 9803 Santa Fe Springs Road.

In addition to the planning entitlements processed, the department also completed a total of 332 plan checks ሺan increase of 20 plan checks from FY 2019‐20ሻ, including sign permit review and landscape review. Staff also prepared a total of 36 zone certification letters ሺan increase of 23 from prior years, and issued a total of 6 home occupation permits ሺa decrease of 7 from prior yearsሻ. In terms of counter activity, the Planning Department assisted a total of 62 individuals at the Planning Counter. It should be noted that due to the COVID‐19 pandemic, City Hall was closed to visitors from March of 2020 until June 14, 2021. The pace for the roughly two weeks that the Planning counter was open would have resulted in an average of 124 for the month.

While staff does not track the number of phone and e‐mail inquiries received, it is safe to say that there has been a direct increase experienced with both activities.

Accomplishments
& Outlook ሺcont.ሻ
(xiii)
Lastly, working with SCAG, Alta Planning ൅ Design and Studio 111, the City’s first Active Transportation Plan ሺATPሻ was completed in January of 2021. An ATP is a comprehensive set of strategies to ensure better options for biking, walking, and transit. It includes recommendations to make the city’s streets within Santa Fe Springs more comfortable, safe, and inviting to pedestrians and bicyclists of all ages and abilities. The Planning staff has also continued to work with the City’s General Plan consultant ሺMIGሻ on completing the comprehensive update to the General Plan which will not only include the seven mandatory elements but also a new Environmental Justice element and an Economic Development element. Over the 2‐year planning process, the department has so far hosted 5 General Plan Advisory Group meetings, 3 community workshops, a dozen stakeholder interviews and focus groups, and conducted various surveys online and through various social media outlets.

Information related to the engagement efforts are available on the designated General Plan website: www.reimaginesantafesprings.org. The public can now not only view documents related to the General Plan but also have an opportunity to provide feedback through the General Plan website. The general plan update process is expected to be completed by March of 2022.

Building Activities
During FY 2020‐21, there were a total of 806 permits issued with an overall valuation of $114,910,276. When compared to FY 2019‐2020, it was a decrease of 137 permits issued and a decrease of $43,646,900 in the total valuation. It should be noted that the Electrical, Mechanical, Plumbing and Grading permits do not have valuations. As for counter activity, staff assisted a total of 33 individuals. As stated previously, this number was only for a two week period and therefore the building staff averaged 66 queries for the month. And similar to Planning, Building staff also experienced a similar spike in phone and e‐mail inquiries throughout this past fiscal year.

Housing Activities
During FY 2020‐21, as part of our General Plan update, a draft 2021‐2029 Housing element was completed. The draft Housing element has been submitted to HCD and the draft document is currently available for public review on the City’s General plan website. Staff is expecting to adopt the City’s 6th cycle Housing element concurrently with the rest of the General Plan as part of the comprehensive General Plan update.

As for actual housing activities, construction of the new 128‐unit Alvia Apartments at 11201‐11313 Carmenita Road is well underway. The entire development is expected to be completed by the end of 2021. Staff has also reviewed and approved roughly 19 Accessory Dwelling Units during the 2020‐ 21 fiscal year. Proposals for new ADUs certainly seems to be on the rise as more and more homeowners take the opportunity to create a secondary income stream or otherwise accommodate their growing families.

Accomplishments
& Outlook ሺcont.ሻ
(xiv)
Upcoming Activities
In addition to what is listed above, staff is in the beginning stages of the following projects: 1ሻ Adopting a new VMT Ordinance; 2ሻ Creating ADU Prototypes; and 3ሻ Creating Objective Design Standards for new residential developments.

Department of Community Services

The Department of Community Services includes the following Divisions: 1) Administration; 2) Parks and Recreation Services (PRS); 3) Library and Cultural Services (LCS); 4) Family and Human Services (FHS). It is one of the City departments that has the most direct impact to the residents of Santa Fe Springs.

Programs and services are available to City residents, as well as business residents.

These programs and services range from social, recreational, and cultural services.

During Fiscal Year 2020-2021, the Department of Community Services achieved several significant accomplishments. The COVID-19 pandemic significantly impacted the programs and services offered by the Department. Fortunately, the Divisions were able to modify and transition to create innovative virtual programs and distanced services to engage and connect with the community.

The following include a variety of in-person and virtual program accomplishments:
 No in-person classes were offered in Fiscal Year 2020-2021 due to the ongoing COVID-19 pandemic. 157 classes were offered ranging from virtual toddler classes, virtual language classes, virtual fitness classes, virtual music lessons, virtual sports, and many more. In total, 1,065 participants joined PRS classes.
 The traditional Halloween Carnival and Haunted House was replaced by a Halloween Goodie Bag Drive-Thru experience. Through the month of October, staff held several small virtual contests that included a virtual home and office decorating contest, a pumpkin decorating contest, and a costume contest. There were 27 entries and the winners were featured in a slideshow on social media. The feature of this year’s Halloween program was the Halloween Goodie Grab Drive-Thru, which was held on Thursday, October 29, 2020 at Los Nietos Park. There were 352 Santa Fe Springs households registered for this event. In total, staff counted 941 people that went through the drive-thru.
 The annual Tree Lighting Ceremony was recorded and streamed through social media on Saturday, December 5, 2020. The date coincided with the traditional in-person event held in Pre-COVID years and held on the 1st Saturday of December. The video had over 2,700 views through the City’s social media platforms.

Accomplishments
& Outlook ሺcont.ሻ
(xv)
 A new program during the holidays was introduced to spread holiday cheer in the community. The program, called Breakfast with the Grinch, was a virtual program for kids that consisted of arts and crafts, story time, and a snack. Breakfast with the Grinch was held on 2 days and attended by 81 children.
 In its 40th year of existence, the City’s Christmas Float Program was revamped due to COVID-19. The tradition stayed alive despite the pandemic. It is estimated that the float covered over 75 miles of residential streets over 5 nights, and was seen by thousands of residents as the float made its way through every residential neighborhood in Santa Fe Springs.  The Virtual Penny Carnival has held online and drew 30 people to virtual trivia games and activities. The virtual trivia games and activities included American Trivia, Wheel of Fortune, Bingo, and Jeopardy.  Approximately 527 youth participated in virtual T.E.E.N.S. programming for middle school and high school aged participants. These numbers were far less than in previous years as all teen programming was transitioned to virtual platforms. The T.E.E.N.S. program offered bi-weekly meetings that included holiday-themed games, trivia, and educational workshops throughout the pandemic.
 A new program, Virtual Family Fun Nights, was implemented in the fall of 2020. These nights included virtual activities for families to enjoy during the pandemic. These activities included a magic show, Loteria, Name if November Trivia, and Web of Fortune. In total, 51 families participated.  In lieu of an in-person Easter event due to the pandemic, a virtual Bunny Brunch activity was held and attended by 31 children. Additionally, there were 61 families that registered for an “Egg-stra” Special Delivery of an Easter basket. The Easter activities also featured a drive-thru event called the “Hop N’ Go” drive-thru, that was attended by 260 residents.  In an effort to stay connected to the community during the Safer-At-Home orders, the Parks and Recreation Services Division continued the #RecNRollPatrol, where PRS staff visited different neighborhoods, drew chalk art on the resident’s sidewalk, delivered inspiring messages and distributed Safer-At-Home recreation kits for the families. Staff visited 120 families during the year.
 The summer day camp program offered 4 weeks of in-person camp at the beginning of the fiscal year and served 237 participants (a rate of 98.7% capacity). At the end of the fiscal year, the in-person camp was cancelled due to Safer-At-Home orders. Staff quickly transitioned to an innovative and creative virtual camp, which served 93 participants (92% capacity).

Further, 98% of participants rated their experience with the virtual camp sessions as extremely satisfied or satisfied.

Accomplishments
& Outlook ሺcont.ሻ
(xvi)
 The 2020 Independence Day Celebration canceled due to the pandemic.

The event was replaced with an Independence Day drive thru experience called Independence Day Party Pack Drive-Thru. Staff distributed 715 Independence Day Party Packs to 318 Santa Fe Springs families.  The 2020 Fiestas Patrias in-person event was cancelled due to the pandemic.

To keep the tradition alive, staff put together several distanced and virtual activities for the community to participate in. 2020 marked the 53rd annual Fiestas Patrias in Santa Fe Springs and highlighted the state of Tabasco, Mexico. The first component of the event was Map My Heritage, which was an interactive map where residents could share their family heritage.

There were submissions from as far as Poland and Ireland, Canada and Mexico. The next component featured a recipe corner, which staff called, “A Taste of Mexico.” Local restaurants submitted recipes and videos to showcase their best dish. Another component was the Community Mural, where a local artist designed a mural that represented the heritage of Santa Fe Springs and 11 local families (37 people) painted the mural. Lastly, on September 12, 2020, the main feature of this year’s Fiestas Patrias event, was a drive-in concert featuring Mariachi Ausente was held at St. Paul High School. The concert was free for residents to attend and attended by 63 residents.
 The Library continued to provide restricted services in Fiscal Year 2020/21.

At the beginning of Fiscal Year 2020/21 staff was still providing curbside service only. The Library reopened to the public on May 17, 2021; the hours were Monday – Friday 10:00 a.m. to 5:00 p.m. Shortly after, an hour was added to close at 6:00 p.m. Staff continued to provide curbside service for those patrons who did not feel comfortable entering the building. Due to social distancing requirements, staff offered fewer computers for the public and restricted seating for most of the year.
 Tierra Mia was not able to staff the café and remained closed.  Library staff did not offer any in-person programming; staff created virtual programming to meet the patron’s needs if possible. Even with these restrictions, the Library circulated over 54,000 physical items and over 7,000 e-books and e-audio books. Library staff fielded over 2,000 phone calls.
 The Willie Gordon Learning Center continued to remain closed due to the restrictions at the Gus Velasco Neighborhood Center.
 The Library received several grants this Fiscal Year. One grant received was a $5,000 grant to purchase e-books and e-audio books to help offer more virtual materials to patrons. Another grant received was for $7,000 to pay for hot spots to circulate to the public. Lastly, a $12,000 grant was received to fund the S.F.S. Summer STEAM children’s program.

Accomplishments
& Outlook ሺcont.ሻ
(xvii)
The Literacy Division continued to provide services remotely via Zoom.

Reading Club had a total of 18 students, all in Level 3. The Division recorded 26 ELLI’s for 89 Rancho Santa Gertrudes 2nd and 3rd grade students. Recordings were 8-10 minutes in length and are a supplemental tool to the current teaching curriculum. ELLI’s are enrichment lessons that are based on a children’s book and build on the California State Standards focus on the students' literacy needs. The recorded ELLI’s and corresponding worksheets are placed in a Google Drive for the schools to have access. Literacy also provided recorded ELLI’s for Rancho’s summer program. The Division also had 9 adult literacy learners who had their classes via Zoom.
 The Literacy Division continued its long tradition of answering Santa Letters. In December of 2020 there were a total of 315 Santa Letters written to children in the SFS Community and surrounding areas.  On January 22nd, the Literacy Division celebrated Authors Month. Local author Rex Ogle, author of Free Lunch, spoke to 125 Rancho Santa Gertrudes students via Zoom and the Library provided signed copies of his book. The students found him very inspirational. After the event, 58 students wrote letters to the author and those letters were printed and mailed to the author as a gesture of appreciation.
 Children’s Services continued to provide virtual programming. Preschool story times, bilingual story times, and STEAM story times were recorded and posted weekly. The videos had a total of over 10,000 views. Our “Grab n’ Go” kits remained popular; staff distributed over 650 kits this Fiscal Year. These kits included a book, activity sheets, and all the materials to complete two crafts.
 The Summer Reading Program was virtual again this year. Staff conducted weekly virtual performances, a virtual kick-off performance, and a virtual end-of-summer performance. While some programs were traditional, such as magic and live animal shows, one show, “Lions, Tigers, and Bears”, allowed patrons to virtually visit an animal sanctuary in the San Diego. The tour featured live tigers, lions, and bears in outdoor habitats.  The Library’s Reading Game was also virtual, and families could keep track of their children’s reading progress using the Library’s online summer reading software. Prizes were awarded for time spent reading.  The Library received an LSTA grant for $12,000, which was used to create over 500 weekly STEAM activity bags. The bags included a book and materials to recreate the one experiment and one craft project. Staff created videos to accompany the crafts and experiments. This program was also offered to the Parks and Recreation Services Division’s day camp participants.

Accomplishments
& Outlook ሺcont.ሻ
(xviii)
 The Library was able to complete a major collection development project.

First, the entire collection was weeded, eliminating damaged, out of date or unused items. Staff then inventoried the collection. Records for items that were missing from the collection but still listed in the online catalog were removed. Staff shifted material to improve access and focused purchasing on areas of the collection that needed updating.
 The Children’s Librarian also cleaned all children’s books, assigned reading levels to the beginning reader’s section, and expanded the young adult graphic novel section. The result of this work is a more organized and upto-date collection with an accurate online catalog.  The Carriage Barn was closed to the public. A pedestal was purchased and installed to display items donated by the Women’s Club.  Due to the physical restrictions surrounding COVID-19, the 2020 Summer Concert and Movie Series was reconfigured to the Summer Drive-In Movie Series and comprised of 6 movies between the months of July and October.

The event took place in the parking lot of Little Lake Park on Friday evenings and utilized a 45-foot inflatable screen and radio audio to entertain over 1,200 city residents across the event series.
 The 2020 Día De Los Muertos event was modified into a virtual celebration throughout the month of October and comprised of an at-home sugar-skull craft and community ofrenda (altar) showcase. Families who preordered sugar skulls attended the drive-thru style event and had their orders delivered to their cars directly, while enjoying the festive decorations surrounding the drive-thru area. A total of 153 skulls were sold to members of the community, and another 80 skulls donated to the GVNC for distribution to older adults, making for a total of 233 skulls distributed.  The 2020 Día De Los Muertos event also featured an online community showcase video that was released on October 31. The video featured photographs of ofrendas submitted by members of the community, as well as photographs of decorated sugar skulls in celebration of Día De Los Muertos. Over 40 photographs were submitted in total by various members within the community to be shared in the virtual showcase.  The annual Las Posadas cultural event in 2020 was modified to a drive-thru celebration kit distribution that provided 60 families and 149 children with holiday-themed crafts, coloring pages, pre-packaged treats, and a copy of “The Night of Las Posadas”, a book by Tomie DePaola about the story of Joseph and Mary’s journey from Nazareth through Bethlehem. Additionally, a pre-recorded reading of the “The Night of Las Posadas” was developed inhouse and posted to the City’s social media for the community to enjoy at their leisure.

Accomplishments
& Outlook ሺcont.ሻ
(xix)
 The annual Pioneer Living event (formerly known as Children’s Day) was reconfigured as the “Colonial Craft Kit Pickup”. The event provided 52 families with a festive collection of colonial era crafts, projects, and activities free of charge.
 During the Safer-At-Home order, new crafts and virtual activities were created and offered for older adult participants. The program started with 160 participants and quickly grew to 258 City residents. They received a craft/activity weekly or a holiday gift to keep them engaged.  Two virtual programs, Virtual Bingo and Zoom & Tea, were also offered to older adults. Approximately 13-15 older adults gathered online weekly between the two programs to partake in the games and conversation.  Approximately 50 Santa Fe Springs Older Adult residents renewed their gym membership since the Safer-At-Home protocol came into place.

However, the gym facility has been closed and not used during the FY 2020-2021.
 In June 2021, The Family and Human Services Division reinstated two outdoor exercise programs. The Moving' and Groovin' class was held at Los Nietos Park picnic area with an attendance of 35 Older Adults on Mondays and Wednesdays. There was also City Strollers which was held at Heritage Park. Staff kept a record of the 16 participants that lapped the park. Each month from June through August, a walker with the most laps received a $30 gift card to sketchers from TEAM UP-medical/Medicare representatives that frequent our senior activities.
 The Senior Buzz is now being mailed out to 258 Santa Fe Springs Older Adults every two months. The Senior Buzz contains information on program updates, upcoming events, Coronavirus health tips, puzzles, word searches, and fun recipes.
 The Family & Human Services, in partnership with the Rotary Club, provided a modified Back to School Backpack Program drive-thru event where backpacks filled with school supplies were provided to 115 Santa Fe Springs children. In addition, $9,750 was received in monetary donations from City businesses and school supplies from individuals and companies.  The annual Volunteer Income Tax Assistance program began in February 2021. The program was modified to a drop off procedure to help reduce the spread of COVID-19. Remarkably the new process was well received, and the number of clients completing their tax returns surpassed the amount of tax returns complete with the traditional in-person process. A total of 400 tax returns were completed.

Accomplishments
& Outlook ሺcont.ሻ
(xx)
 The Family & Human Services Division continued to partner with the Southeast Area Social Services Funding Authority (SASSFA) to serve hot meals to seniors. During the Safer-at-Home protocol, the Neighborhood Center continued to prepare 796 hot meals per month for homebound seniors in the City and surrounding communities. Our homebound meals increased to 96 meals per day and were home delivered to all registered participants.
 The Thankful Neighborhood Basket program provided Thanksgiving Baskets to 134 low-income families and older adult residents.  The Neighborly Elf Program provided 149 food baskets to low-income families and older adult residents. In addition, gift cards were given to families:
o Kids ages 10 and under received a $25.00 gift card
o Youths ages 11-18 received a $50.00 gift card
o Each family received a grocery gift card in the amount of $25.00  As Certified Application Counselors, the Family and Human Services Caseworkers worked virtually and provided access to affordable healthcare to 11 families and individuals through Covered California during the Fiscal Year.
 The Family & Human Services Division continues to partner with United Way and Southern California Edison to provide utility assistance to lowincome families. Through this partnership and funding, and overcoming the challenges of servicing virtually, by phone or email, the Division processed 214 applications, totaling to $33,593.36 in utility assistance grants during FY 2020-2021.
 Gus’ Kitchen Food Pantry and Community Closet located at the Gus Velasco Neighborhood Center was used by 100 clients. Clients were able to obtain food, clothing, and hygiene products. In addition, during the SaferAt-Home order, items from Gus’s kitchen were donated to the local school districts and food banks.
 The Family & Human Services Division in partnership with Cedars Sinai presented a six-week workshop series on Healthy Habits for Families from March 10, 2021 to April 7, 2021. The virtual nutritional workshops discussed subjects on portion control, physical activity, chronic disease management, and calorie & label reading. There were 19 participants in the program.

Accomplishments
& Outlook ሺcont.ሻ
(xxi)
City Manager
The City Manager is responsible for carrying out the policies and directives of the Council, for overseeing the City’s daily operations, maintain the city budget and represent the municipality in a variety of settings, and supervise City departments. Additionally, the City Manager’s Office also researches issues important to the city and advises the mayor and council on the best course of action.

During the COVID‐19 emergency, pursuant to the Governor’s Executive Order N‐29‐20 which allowed for a deviation of teleconference rules required by the Brown Act, the City began conducting teleconference City Council meetings via zoom. After teleconferencing meetings for a few months, the City decided to continue conducting City Council Meetings via zoom and in‐person. As of August 3, 2021, zoom meetings have been recorded and made available on the City’s website via YouTube. Having two options for the public to attend our Council Meetings; there has been positive feedback and engagement for allowing the public to facilitate the access to these meetings without leaving their home.

Department of Finance and Administrative Services
The Department of Finance and Administrative Services is responsible for various different areas, including managing and safeguarding financial resources in accordance with specific principles and practices, administering information technology and risk management functions, as well as the City’s Human Resources function. In addition to receiving the Government Finance Officers Association’s ሺGFOAሻ Certificate of Achievement for Excellence in Financial Reporting again this year and over the last several decades, the department embarked on several initiatives this fiscal year.

The department is now in the third year of implementing the financial module of the new Enterprise Resource Planning ሺERPሻ system. The department is planning to implement the payroll module next year.

During Fiscal Year 2020‐2021, the City’s operations were impacted by the pandemic. However, the City experienced little to no effect on revenue stream, and in fact, experienced greater than anticipated Sales Tax and Transaction Tax revenues.

The City continued taking a number of steps to better position its long‐term financial standing. City employees are paying their full share of City pension costs. This, coupled with “tiered” benefits providing future City employees with a reduced set of benefits and a greater share of the costs, will substantially help the City’s future fiscal standing. In conjunction with Long‐Term
Financial Planning
Accomplishments
& Outlook ሺcont.ሻ
(xxii)
subsequent pension reform earmarked changes adopted by the State, the effect should be the stabilization of employee costs.

The City continues to prefund Other Postemployment Benefits ሺOPEBsሻ through CalPERS’ California Employers’ Retiree Benefit Trust Fund ሺCERBTሻ. It recognizes the benefit of “prefunding” through a trust rather than using the “pay as you go” method.

Over the course of the next year, staff will be looking to further develop and formalize more long‐term financial planning models. They should help provide a framework that helps identify future trends.

At June 30, 2021, the City of Santa Fe Springs oversaw six outstanding bond issues comprised of: three Consolidated Redevelopment Project tax allocation bond issues, one City water revenue bond, one taxable pension obligation bond, and one special assessment district bond.

The City works closely with public financial professionals to monitor opportunities to effectively administer the outstanding debt in a fluid public finance market. More detailed information about the debt is contained in the Management’s Discussion and Analysis and in the Notes to Financial Statements.

We would like to extend our appreciation to the City Council, the City Council Audit Subcommittee, and City departments for their cooperation and support in planning and conducting the financial operations of the City during the past fiscal year. Specifically, we would like to thank the Department of Finance & Administrative Services for their consistent dedication and hard work.

Raymond Cruz
City Manager

Travis Hickey
Director of Finance and Administrative Services
Acknowledgements
Debt
Administration
(xxiii)
(xxiv)
CliftonLarsonAllen LLP
CLAconnect.com
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details. (1) INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members
of the City Council
City of Santa Fe Springs, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Santa Fe Springs, California (the City), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

To the Honorable Mayor and Members
of the City Council
City of Santa Fe Springs, California
(2)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 1 and 16 to the financial statements, the City implemented GASB Statement No. 84, Fiduciary Activities, in fiscal year ended June 30, 2021, which resulted in a restatement. Our opinion is not modified with respect to that matter.

Other Matters
Report on Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the General Fund and Low and Moderate Income Housing Assets Fund, the schedules of changes in the net pension liability and related ratios for the agent multiple-employer miscellaneous plan, the schedule of plan contributions for the agent multiple-employer miscellaneous plan, the schedule of proportionate share of the net pension liability for the cost sharing safety plan, the schedule of plan contributions for the cost sharing safety plan, the schedule of changes in the net OPEB liability and related ratios, and the schedule of contributions for OPEB, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the RSI 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 RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

To the Honorable Mayor and Members
of the City Council
City of Santa Fe Springs, California
(3)
The combining and individual nonmajor fund financial statements, and budgetary comparison schedules are 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
January 27, 2022
(4)
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CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(5)
This is management’s discussion and analysis (MD&A) of the financial performance of the City of Santa Fe Springs (City) for the fiscal year ended June 30, 2021. This should be read in conjunction with the transmittal letter that can be found in the introductory section of this report and with the City’s financial statements, which follow this discussion.

Financial Highlights
 The City’s total net position increased over the course of the fiscal year by $17.6 million to $154.7 million. The governmental net position increased by $17.4 million or 14.7%, while the businesstype net position increased by $0.2 million or 1.0%.  The general fund, on the current financial resources basis, reported an increase in fund balance of $10.3 million to $60.3 million. Excluding transfers and other financing sources/uses, the general fund reported $11.9 million excess of revenues over expenditures. Revenues increased by $1.8 million or 2.4% and expenditures increased by $5.5 million or 9.2% when compared to prior year.

Increase in revenues was primarily due to increase in revenues provided by sales and use taxes and charges for services, this was partially offset by the decrease in interest and rentals income.

Increases in expenditures were mainly due to rising pension costs and increases in capital outlay expenditures.

Overview of the Financial Statements
This annual report consists of several parts: an introductory section, management’s discussion and analysis, the basic financial statements, required supplementary information, supplementary information and a statistical section. The basic financial statements include two kinds of statements that present different views of the City: government-wide financial statements and fund financial statements.

Government-wide Financial Statements
The government-wide financial statements provide both short and long-term information about the City’s overall financial status in a manner similar to a private sector business.  The statement of net position presents information on all of the City’s assets and deferred outflows, and liabilities and deferred inflows, with the difference between the two reported as net position. In time, increases or decreases in net position may serve as a useful indicator of whether the financial condition of the City is improving or deteriorating.  The statement of activities presents information on how the City’s net position changed during the 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. Revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The City’s Water Utility operates as a proprietary fund and is reported as the City’s only business-type activity in the government-wide statements.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(6)
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.
 Governmental funds statements tell how general government services such as public works, community services, police and fire were financed in the short term, as well as what remains for future spending. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and governmental activities follow each of the governmental funds statements.
 Proprietary fund statements offer short and long-term financial information about the City’s Water Utility Enterprise fund and internal service funds.  Fiduciary funds statements provide information about the financial relationships in which the City acts solely in a trustee or custodial capacity for the benefit of others, to whom the resources belong. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by certain required supplementary information concerning the City’s budgetary comparison schedules for its general fund and the City’s pension and other post-employment benefits obligation to its employees. In addition to these required elements, we have included supplementary statements and schedules that provide details about the City’s non-major governmental funds.

Financial Analysis of the Government-wide Statements
The government-wide financial statements provide short and long-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

The statement of net position includes all of the City’s assets and deferred outflows, and liabilities and deferred inflows. All current year revenues and expenses are reported in the statement of activities, regardless of when cash is received or paid.

The two government-wide financial statements report the City’s net position and how it has changed during the fiscal year. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial health of the City is improving or deteriorating.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(7)
Total
Percent
Change
2020 2021 2020 2021 2020 2021
Current and other assets $ 108.4 $ 124.9 $ 14.8 $ 15.5 $ 123.2 $ 140.4 14.0% Capital assets, net 162.6 167.7 26.5 26.3 189.1 194.0 2.6% Total assets 271.0 292.6 41.3 41.8 312.3 334.4 7.1%
Deferred outflows 21.2 22.8 1.4 1.5 22.6 24.3 7.5%
Long-term liabilities 157.6 165.2 20.9 20.8 178.5 186.0 4.2% Other liabilities 6.8 7.7 2.0 2.7 8.8 10.4 18.2%
Total liabilities 164.4 172.9 22.9 23.5 187.3 196.4 4.9% Deferred inflows 9.8 7.1 0.7 0.5 10.5 7.6 -27.6%
Net position
163.1 162.0 18.0 19.1 180.0 182.2 1.2%
Restricted 31.0 30.9 0.6 - 31.6 30.9 -2.2%
Unrestricted (75.0) (58.6) 0.5 0.2 (74.5) (58.4) -21.6% $ 118.0 $ 135.4 $ 19.1 $ 19.3 $ 137.1 $ 154.7 12.8%
Summary of Net Position
June 30, 2020 and 2021
(in millions)
Business-
Net investment in
capital assets
Governmental type
Activities Activities Total

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Santa Fe Springs, assets and deferred outflows exceed liabilities and deferred inflows by $154.7 million at the close of the fiscal year. The largest portion of the City’s net position 117.8%, is invested in capital assets, net of related debt. Approximately (37.8 %) of the City’s net position is unrestricted. Unrestricted net position is at a deficit of $58.4 million, a decrease of $16.1 million from the prior year.

During the fiscal year, the City’s ending net position increased by $17.6 million, when compared to the prior year, revenues increased by $4.8 million to $101.3 million. Expenses increased by $0.3 million to $83.7 million. Total revenues outpaced total expenses primarily due to increase in sales and use taxes and charges for services program revenues.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(8)
Total
Percentage
Change
2020 2021 2020 2021 2019 2021
Revenues
Program revenues:

Charges for services $ 9.2 $ 9.5 $ 12.4 $ 14.4 $ 21.6 $ 23.9 10.6%

5.7 4.4 0.1 - 4.5 5.7 26.7%

3.3 2.1 - - 2.1 3.3 57.1%
General revenues:

Sales and use taxes 30.7 32.3 - - 30.7 32.3 5.2%
Transaction and use taxes 13.1 13.7 - - 13.1 13.7 4.6%
Property taxes 5.0 6.0 - - 5.0 6.0 20.0%
Franchise taxes 3.5 3.5 - - 3.5 3.5 0.0%
Motor vehicle in lieu 2.1 2.3 - - 2.1 2.3 9.5%
Business operations taxes 0.8 0.8 - - 0.8 0.8 0.0%
Utility users taxes 6.5 6.9 - - 6.5 6.9 6.2%
Other taxes 0.1 0.2 - - 0.1 0.2 100.0%
Investment income 4.3 1.3 0.3 0.2 4.6 1.5 -67.4%
Other 1.8 1.1 0.1 0.1 1.9 1.2 -36.8%
Total revenues 83.6 86.6 12.9 14.7 96.5 101.3 5.0%
Expenses
Governmental activities:

General government 8.5 8.5 - - 8.5 8.5 0.0%
Public safety 34.7 35.2 - - 34.7 35.2 1.4%
Community development 2.8 2.7 - - 2.8 2.7 -3.6%
Public works 17.6 16.8 - - 17.6 16.8 -4.5%
Culture and leisure 6.5 5.5 - - 6.5 5.5 -15.4%
Human services 1.9 1.6 - - 1.9 1.6 -15.8%
Interest on long-term debt 0.1 0.1 - - 0.1 0.1 0.0%
Business-type activities:

Water - - 11.3 13.3 11.3 13.3 17.7%
Total expenses 72.1 70.4 11.3 13.3 83.4 83.7 0.4%
Excess (deficiency) before transfers 11.5 16.2 1.6 1.4 13.1 17.6 34.4% Transfers 1.2 1.2 (1.2) (1.2) - -
Increase (decrease) in net position 17.4 12.7 0.4 0.2 13.1 17.6 34.4% Net position - beginning 105.3 118.0 18.7 19.1 124.0 137.1 10.6% Net position - ending $ 118.0 $ 135.4 $ 19.1 $ 19.3 $ 137.1 $ 154.7 12.8% Changes in Net Position
For the Fiscal Years Ended June 30, 2020 and 2021
(in millions)
Total
Governmental Business-type Primary
Activities Activities Government
Operating grants and contributions
Capital grants and contributions
The City’s total revenues were $101.3 million for the fiscal year ended June 30, 2021. Revenues from governmental activities totaled $86.6 million and revenues from business-type activities totaled $14.7 million. Program revenues comprise 32.5% of total revenues with the largest portion of this, $23.9 million, resulting from charges for services. Sales and use taxes and transaction taxes comprise 45.4% of total revenues and other general revenues comprise the remaining 32.1%. Total revenues increased by 5.0%, primarily due to increase in program charges for services and increase in sales and use taxes during the fiscal year. Some of the increases were partially offset by the decrease in investment incomes.

Expenses of the City for the year totaled $83.7 million. Governmental activity expenses totaled $70.4 million, or 84.1% of total expenses. The following table summarizes the total cost and net cost of the City’s governmental activities by function type.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(9)
Percentage Percentage
Change Change
2020 2021 2020 2021
General government $ 8.5 $ 8.5 0.0% $ 4.3 $ 3.1 -27.9%
Public safety 34.7 35.2 1.4% 31.0 31.4 1.3%
Community development 2.8 2.7 -3.6% 0.8 0.9 12.5%
Public works 17.6 16.8 -4.5% 12.7 9.8 -22.8%
Culture and leisure 6.5 5.5 -15.4% 5.7 5.0 -12.3%
Human services 1.9 1.6 -15.8% 1.7 1.6 -5.9%
Interest on long-term debt 0.1 0.1 0.0% 0.1 0.1 0.0%
Total $ 72.1 $ 70.4 -2.4% $ 56.3 $ 51.9 -7.8%
Net Cost of Governmental Activities
(in millions)
Total Cost Net Cost
of Services of Services
Business-type Activities
Program revenues of the City’s only business-type activity, the Water Utility, totaled $14.4 million, and investment and other income totaled an additional $0.3 million. Expenses of the Water Utility were $13.3 million. Water rates include a factor to provide for a modest annual water infrastructure replacement program. Income before transfers was $1.4 million. Transfers out totaled $1.2 million. This amount was transferred to the City’s general fund for use of the City’s rights of way and maintenance of the City’s extensive infrastructure. The cost of capital improvements is reported in the statement of net position, rather than as expenses in the statement of activities. Capital assets of $26.3 million (net of accumulated depreciation) decreased by approximately $0.2 million.

Financial Analysis of the Fund Statements
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of City government, reporting the City’s operations in more detail than the government-wide statements.

The City’s governmental funds provide information on near-term inflows, outflows and the balance of available resources. The City’s governmental funds reported combined fund balances at June 30, 2021, of $112.9 million, an increase of approximately $13.5 million from the previous fiscal year. The primary reason for the increase was due to revenues exceeding expenditures in the General Fund resulting from increase in sales and use taxes and charges for services program incomes.

The General Fund is the chief operating fund of the City. At June 30, 2021, the General Fund’s unassigned fund balance was $24.9 million. Additional General Fund balances were: nonspendable $2.3 million, restricted $1.6 million, committed $0.2 million, and assigned $31.3 million. Revenues increased by approximately $1.8 million and expenditures increased by $5.5 million when compared to prior year. The revenue increase is a combination of increases in sales and use, property taxes, property transfer taxes and utility uses. The expenditure increase is reflective of rising pension costs, and increase in capital outlay, this was offset by decrease in pension obligation bonds payment.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(10)
The pension obligation bonds were paid off during fiscal year June 30, 2020. During the fiscal year ended June 30, 2021, the overall fund balance in the General Fund increased by $10.3 million.

Within the governmental funds designation, the City has four other major funds: the Low and Moderate Income Housing Assets Special Revenue Fund, the Capital Improvement Capital Projects Fund, the Prefunded Capital Projects Fund, and the Successor Agency Bond Funded Capital Projects Fund.

The Low and Moderate Income Housing Assets Special Revenue Fund was created during FY 2011-12 to account for the assets of the housing fund of the former redevelopment agency. Under the redevelopment dissolution bills, the City acts as housing successor to the former redevelopment agency and will retain the rights and obligations to administer the assets of the fund. The assets of the fund total $12.2 million consisting primarily of cash and investments, loans and advances receivable, and land and buildings held for resale. During fiscal year 2020-21 the fund expended $0.2 million in housing administration costs.

The Capital Improvement Capital Projects Fund is used to account for expenditures on various capital improvement projects and the related revenues to finance the projects. The revenues and expenditures of the fund may vary significantly from year to year depending on the activity each year.

The assets of the fund total $6.8 million primarily consisting of receivables expected to be received from various governmental agencies. During the fiscal year ended June 30, 2021, the overall fund balance decreased by $1.6 million to $3.1 million deficit. The reduction was due to pending reimbursements from various government agencies for completed projects during prior year. These receivables are outstanding beyond the available period and have not been recognized as revenues.

The Prefunded Capital Projects Fund was created during fiscal year 2012-13 to account for the City’s Capital Improvement Program in the post-redevelopment era. The former redevelopment agency was a significant source of funding prior to dissolution. Without the redevelopment agency, the General Fund became the main source of future funds for the Capital Improvement Program. Through a combination of revenue enhancements (i.e. increase in the utility users tax rate) and cost containment and reduction measures, the General Fund will annually budget a transfer to the Prefunded Capital Projects Fund to build the base from which the Capital Improvement Program will operate. Additionally, one time revenues will be considered for allocation to the fund. For the fiscal year ended June 30, 2021 the General Fund transferred $7.8 million into the Prefunded Capital Projects fund to restore a portion of the CIP target funding. The fund has increased by $6.1million to $28.6 million as of the fiscal year-end. The increase was primarily due to additional funding transferred from General Fund. City staff, in conjunction with the CIP Subcommittee of the City Council, work together throughout the year to plan and manage the projects financed through this fund.

The Successor Agency Bond Funded Capital Projects Fund was created in fiscal year 2014-15 to account for the unspent bond proceeds of the former redevelopment agency. With approval from the California Department of Finance, the Successor Agency transferred approximately $19.6 million in unspent proceeds to the City as of July 1, 2014. Under a Bond Expenditure Agreement between the City and the Successor Agency, the City manages the projects for which the bond proceeds are to be used. During fiscal year 2020-21 the City expended approximately $4.1 million on projects. As of fiscal year-end the fund balance decreased by $3.1 million to $8.1 million. The decrease was due to additional street projects during the fiscal year. The balance accumulated in the fund is to be used on future projects.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(11)
General Fund Budgetary Highlights
The difference between the original budget and the final amended budget for expenditures was a $0.6 million increase (0.9%). The final amended budget exceeded actual expenditures by approximately

6.9% due to lower than expected operation costs throughout most functional areas.

Revenues exceeded the budget amount by $9.3 million, primarily due sales and used taxes growth more than anticipated during the pandemic. Increases were seen in other revenue categories, including transaction and use taxes, property taxes, vehicle in lieu tax, and franchise taxes. The Notes to the Required Supplementary Information provides more details regarding budgeting policies and practice.

Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2021, amounts to $167.7 million (net of accumulated depreciation), an increase of approximately $5.1 million from the previous year. This investment in capital assets includes land, construction in progress, buildings, improvements other than buildings, equipment and infrastructure. Note 6 –Capital Assets provides more detailed information on the capital assets.

The City’s investment in capital assets for its business-type activities, the Water Utility Fund, as of June 30, 2021, amounts to $26.3 million (net of accumulated depreciation), a decrease of $0.2 million. Water Utility capital assets required for private development purposes are funded by capital contributions.

Long-term Liabilities
At June 30, 2021, the City’s governmental activities long-term liabilities increased by $7.6 million to $166.3 million. The City’s business-type activities long-term liabilities decreased by $0.1 million to $21.2 million. The long-term liabilities consisted of bonds, compensated absences, OPEB obligation, Pension obligation, and other loans/leases are summarized in the table below and more detailed information is included in Note 7 – Long-Term Liabilities, Note 8 - Compensated Absences, Note 10 – Pension Plan Obligations and Note 11 – Post-Employment Health Care Benefits.

During FY 2012-13 the City’s business-type activity Water Utility Fund issued $6.89 million in water revenue bonds to refund the existing 2003 water revenue bonds at lower interest rates and provide approximately $2.1 million in additional proceeds to be used for water infrastructure projects. During FY 2017-18, Water Utility Authority issued $1.8 million in water revenue bonds to refund the existing 2005 water revenue bonds at lower interest rates and provide a reduction of approximately $0.4 million in total debt service payments.

CITY OF SANTA FE SPRINGS, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(12)
Outstanding Debt
(in millions)
Total
Percentage
Change
2020 2021 2020 2021 2020 2021
Revenue bonds $ 0.0 $ 0.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 0.0%
Compensated absences 2.5 2.6 0.3 0.3 2.8 2.9 3.6%
OPEB obligation 37.5 35.8 3.7 3.5 41.2 39.3 -4.6%
Pension obligation 117.6 124.1 9.1 9.4 126.7 133.5 5.4% Other loans/leases 0.6 3.8 0.0 0.0 0.6 3.8 533.3%
Total $ 158.2 $ 166.3 $ 21.1 $ 21.2 $ 179.3 $ 187.5 4.6% Governmental Activities Business-type Activities Total
All water revenue and pension obligation bonds are insured issues.

Economic Factors and Next Year’s Budgets
The City of Santa Fe Springs has dealt with many difficult decisions stemming from the downturn in the economy in the late 2000’s, the dissolution of redevelopment agencies and tax increment financing and more recently the COVID-19 pandemic. The City’s condition, despite the impacts of the pandemic, is improving due to revenue enhancements coupled with cost containment and reduction measures but still faces significant financial challenges in the years ahead. Major factors expected to affect the budget include:

 Slow recovery of state and local economies.
 Funding capital improvements without the Redevelopment Agency, which historically funded the majority of capital projects prior to the dissolution of redevelopment.  Funding for significantly increasing retirement contributions rates caused by a number of factors including the reduced number of active employees, actuarial assumption changes related to mortality and expected investment returns, and poor investment performance of the pension plan during the economic downturn in 2008 and the recent COVID-19 downturn.  Increasing demands for public services, including unfunded mandates by both federal and state governments.

All of these factors were considered in adopting the Fiscal Year 2021-22 operational budget.

Requests for Information
This financial report is designed to provide a general overview of the City of Santa Fe Springs finances.

Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Director of Finance and Administrative Services, City of Santa Fe Springs, 11710 Telegraph Road, Santa Fe Springs, California.

CITY OF SANTA FE SPRINGS, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompany Notes to Basic Financial Statements.
(13)
Governmental Business-Type
Activities Activity Total

CURRENT ASSETS
Cash and Investments 101,569,866 $ 12,910,744 $ 114,480,610 $ Receivables:

Accounts 2,396,967 1,756,250 4,153,217
Interest 139,702 2,483 142,185
Deposits and Other Assets 1,037,521 5,767 1,043,288
Due from Other Governments 16,038,929 - 16,038,929
Inventories 926,721 277,216 1,203,937
Restricted Assets:

Cash with Fiscal Agent - 556,223 556,223
Total Current Assets 122,109,706 15,508,683 137,618,389

NONCURRENT ASSETS
Notes and Loans, Net of Allowances 2,194,686 - 2,194,686 Land and Buildings Held for Resale 520,032 - 520,032
Capital Assets not Being Depreciated 61,526,573 8,375,279 69,901,852 Capital Assets, Net of Depreciation 106,191,473 17,941,217 124,132,690 Total Noncurrent Assets 170,432,764 26,316,496 196,749,260 Total Assets 292,542,470 41,825,179 334,367,649
DEFERRED OUTFLOWS OF RESOURCES:

Deferred Charge on Refunding 73,127 - 73,127
Deferred Pension-Related Items 17,888,029 917,984 18,806,013 Deferred OPEB-Related Items 4,926,469 487,233 5,413,702 Total Deferred Outflows of Resources 22,814,498 1,478,344 24,292,842

CURRENT LIABILITIES
Accounts Payable 1,878,334 1,360,658 3,238,992
Accrued Liabilities 1,737,420 104,939 1,842,359
Accrued Interest 44,366 46,823 91,189
Unearned Revenue 1,238,076 - 1,238,076
Deposits Payable 1,473,824 892,932 2,366,756
Due to Other Governments 84,579 - 84,579
Contracts Payable 127,851 - 127,851
Compensated Absences 440,000 60,000 500,000
Bonds and Capital Leases Payable 631,126 205,000 836,126 Total Current Liabilities 7,655,576 2,670,352 10,325,928

NONCURRENT LIABILITIES
Compensated Absences 2,115,206 288,438 2,403,644
Bonds and Capital Leases Payable 3,137,251 7,584,696 10,721,947 Net OPEB Liability 3,545,146 35,845,359 39,390,505
Net Pension Liability 9,390,531 124,135,677 133,526,208 Total Noncurrent Liabilities 165,233,493 20,808,811 186,042,304 Total Liabilities 172,889,069 23,479,163 196,368,232

DEFERRED INFLOWS OF RESOURCES
Deferred Pension-Related Items 2,527,822 - 2,527,822
Deferred OPEB-Related Items 4,562,662 451,252 5,013,914 Total Deferred Inflows of Resources 7,090,484 451,252 7,541,736

NET POSITION
Net Investment in Capital Assets 163,096,596 19,154,855 182,251,451 Restricted - Nonexpendable 244,676 - 244,676
Restricted - Expendable:

Community Development Projects 81,407 - 81,407
Public Safety - 229,687 229,687
Public Works 5,354,735 - 5,354,735
Capital Projects 9,826,713 - 9,826,713
Low and Moderate Income Housing 12,170,846 - 12,170,846 Art in Public Places - Expendable 1,384,968 - 1,384,968 Waste Management 1,408,854 - 1,408,854
Environmental Programs 203,908 - 203,908
Unrestricted 218,253 (58,624,975) (58,406,722)
Total Net Position 135,377,415 $ 19,373,108 $ 154,750,523 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompany Notes to Basic Financial Statements.
(14)
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 8,482,800 $ 3,121,333 $ 2,304,466 $ - $ Public Safety 35,296,588 3,580,227 324,249 -
Community Development 2,674,722 1,760,519 - -
Public Works 16,766,663 995,335 2,583,333 3,351,016
Culture and Leisure 5,501,644 34,487 443,671 -
Human Services 1,612,973 1,149 38,964 -
Interest on Long-Term Debt 51,054 - - -
Total Governmental Activities 70,386,444 9,493,050 5,694,683 3,351,016 Business-Type Activity:

Water Fund 13,282,916 14,430,951 - 22,074
Total 83,669,360 $ 23,924,001 $ 5,694,683 $ 3,373,090 $ Program Revenues

CITY OF SANTA FE SPRINGS, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompany Notes to Basic Financial Statements.
(15)
Functions/Programs
Governmental Activities:

General Government
Public Safety
Community Development
Public Works
Culture and Leisure
Human Services
Interest on Long-Term Debt
Total Governmental Activities
Business-Type Activity:

Water Fund
Total

GENERAL REVENUES
Taxes
Property Taxes,
Levied for General Purpose
Transaction and Use Taxes
Sales and Use Taxes
Franchise Taxes
Business Operation Taxes
Utility Users Tax
Other Taxes
Intergovernmental Revenues -
Motor Vehicle in Lieu
Interest and Rentals
Other
Sale of Capital Assets
Transfers
Total General Revenues and Transfers

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
Governmental Business-Type
Activities Activity Total
$ - (3,057,001) $ (3,057,001) $
- (31,392,112) (31,392,112)
- (914,203) (914,203)
- (9,836,979) (9,836,979)
- (5,023,486) (5,023,486)
- (1,572,860) (1,572,860)
- (51,054) (51,054)
- (51,847,695) (51,847,695)
1,170,109 - 1,170,109
1,170,109 (51,847,695) (50,677,586)
- 5,961,342 5,961,342
- 13,682,006 13,682,006
- 32,305,008 32,305,008
- 3,550,280 3,550,280
- 771,642 771,642
- 6,907,100 6,907,100
- 172,204 172,204
- 2,297,474 2,297,474
181,503 1,303,072 1,484,575
61,605 1,089,993 1,151,598
- 40,878 40,878
(1,154,424) 1,154,424 -
(911,316) 69,235,423 68,324,107
258,793 17,387,728 17,646,521
19,114,315 117,989,687 137,104,002
$ 19,373,108 135,377,415 $ 154,750,523 $
Net (Expense) Revenue and
Changes in Net Position

CITY OF SANTA FE SPRINGS, CALIFORNIA
BALANCE SHEET — GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompany Notes to Basic Financial Statements.
(16)
Special Revenue
Fund
Low and
Moderate Prefunded
Income Housing Capital Capital
General Assets Fund Improvement Projects
ASSETS
Pooled Cash and Investments 48,317,392 $ 8,529,776 $ 1,994,143 $ 29,334,849 $ Receivables:

Accounts 2,347,461 29,098 20,408 -
Notes and Loans, Net of Allowances 376,374 1,665,017 - - Accrued Interest 124,841 - - -
Deposits and Other Assets 1,037,521 - - -
Due from Other Governments 8,821,425 - 4,814,521 170,789 Due from Other Funds 5,055,667 - - -
Advances to Other Funds - 1,437,861 - -
Inventories 926,721 - - -
Land and Buildings Held for Resale - 520,032 - -
Total Assets 67,007,402 $ 12,181,784 $ 6,829,072 $ 29,505,638 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable 1,127,536 $ 5,890 $ 10,232 $ 707,998 $ Accrued Liabilities 1,724,560 5,048 686 4,290
Unearned Revenues 1,238,076 - - -
Deposits Payable 944,206 - 529,618 -
Due to Other Governments 18,985 - 65,594 -
Due to Other Funds 7,425 - 4,446,455 -
Advances from Other Funds 1,437,861 - - -
Contracts Payable - - - -
Total Liabilities 6,498,649 10,938 5,052,585 712,288

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 160,224 - 4,814,521 170,789

FUND BALANCES
Nonspendable:

Inventory 926,721 - - -
Notes and Loans 376,374 - - -
Deposits and Other Assets 1,037,521 - -
Permanent Fund Principal - - - -
Restricted for:

Community Development Projects - - - -
Public Safety - - - -
Public Works - - - -
Capital Projects - - - -
Low and Moderate Income Housing - 12,170,846 - -
Art in Public Places - - - -
Waste Management 1,408,854 - - -
Environmental Programs 203,908 - - -
Committed to:

Capital Projects 225,000 - - -
Assigned to:

Capital Projects - - - 28,622,561
Facility Improvement 25,193
Equipment Replacement 4,879,449 - - -
Economic Uncertainty 6,125,000 - - -
Employee Benefits 3,377,785 - - -
Risk Management 903,200 - - -
Unfunded Liability 15,975,000 - - -
Unassigned 24,884,524 - - (3,038,034)
Total Fund Balances 60,348,529 12,170,846 28,622,561 (3,038,034) Total Liabilities, Deferred Inflows of
Resources and Fund Balances 67,007,402 $ 12,181,784 $ 6,829,072 $ 29,505,638 $ Capital Projects Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA
BALANCE SHEET — GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
See accompany Notes to Basic Financial Statements.
(17)
ASSETS
Pooled Cash and Investments
Receivables:

Accounts
Notes and Loans, Net of Allowances
Accrued Interest
Deposits and Other Assets
Due from Other Governments
Due from Other Funds
Advances to Other Funds
Inventories
Land and Buildings Held for Resale
Total Assets

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Unearned Revenues
Deposits Payable
Due to Other Governments
Due to Other Funds
Advances from Other Funds
Contracts Payable
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues

FUND BALANCES
Nonspendable:

Inventory
Notes and Loans
Deposits and Other Assets
Permanent Fund Principal
Restricted for:

Community Development Projects
Public Safety
Public Works
Capital Projects
Low and Moderate Income Housing
Art in Public Places
Waste Management
Environmental Programs
Committed to:

Capital Projects
Assigned to:

Capital Projects
Facility Improvement
Equipment Replacement
Economic Uncertainty
Employee Benefits
Risk Management
Unfunded Liability
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances
Capital Projects
Funds
Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds
$ 5,423,225 7,970,481 $ 101,569,866 $
- - 2,396,967
19,250 134,045 2,194,686
- 14,861 139,702
- - 1,037,521
2,232,194 - 16,038,929
7,425 66,971 5,130,063
- - 1,437,861
- - 926,721
- - 520,032
$ 7,682,094 8,186,358 $ 131,392,348 $
$ 19,686 6,992 $ 1,878,334 $
1,547 1,289 1,737,420
- - 1,238,076
- - 1,473,824
- - 84,579
676,183 - 5,130,063
- - 1,437,861
- 127,851 127,851
697,416 136,132 13,108,008
219,895 - 5,365,429
- - 926,721
- - 376,374
- - 1,037,521
244,676 - 244,676
81,407 - 81,407
111,463 - 111,463
5,183,946 - 5,183,946
- 8,050,226 8,050,226
- - 12,170,846
1,384,968 - 1,384,968
- - 1,408,854
- - 203,908
- - 225,000
- - 28,622,561
25,193
- - 4,879,449
- - 6,125,000
- - 3,377,785
- - 903,200
- - 15,975,000
- 21,604,813 (241,677)
6,764,783 8,050,226 112,918,911
$ 7,682,094 8,186,358 $ 131,392,348 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompany Notes to Basic Financial Statements.
(18)
Fund Balances of Governmental Funds $ 112,918,911
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and, therefore are not reported in the fund financial statements.

Capital Assets not Being Depreciated 61,526,573 $
Capital Assets Being Depreciated 240,244,690
Accumulated Depreciation (134,053,217) 167,718,046
Long-term liabilities applicable to the City’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position. Balances at June 30, 2021 are:

Capital Leases Payable (3,768,377)
Compensated Absences (2,555,206) (6,323,583)
Pension and OPEB related debt applicable to the City’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions and OPEB are only reported in the Statement of Net Position as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources - Pension Related 17,888,029 Deferred Inflows of Resources - Pension Related (2,527,822) Net Pension Liability (124,135,677)
Deferred Outflows of Resources - OPEB Related 4,926,469 Deferred Inflows of Resources - OPEB Related (4,562,662) Net OPEB Liability (35,845,359) (144,257,022)
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (44,366) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 5,365,429 Net Position of Governmental Activities $ 135,377,415
(19)
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CITY OF SANTA FE SPRINGS, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(20)
Special Revenue
Fund
Low and
Moderate Prefunded
Income Housing Capital Capital
General Assets Fund Improvement Projects

REVENUES
Taxes 65,422,671 $ - $ - $ - $
Licenses and Permits 2,228,200 - - -
Intergovernmental 829,843 - 205,634 211,818
Charges for Services 6,445,477 - 17,862 -
Interest and Rentals 1,185,945 206,102 - -
Fines and Forfeitures 380,754 - - -
Contributions 271,018 - - -
Miscellaneous 893,949 48,331 675,445 2,425
Total Revenues 77,657,857 254,433 898,941 214,243

EXPENDITURES
Current
General Government 8,521,162 - - -
Public Safety 32,702,617 - - -
Community Development 2,541,327 216,789 - -
Public Works 11,045,074 - - 279,391
Culture and Leisure 5,002,819 - - -
Human Services 1,418,131 - - -
Capital Outlay 4,312,921 - 2,541,044 1,559,373
Debt Service
Principal Retirement 176,868 - - -
Interest and Fiscal Charges 21,337 - - -
Total Expenditures 65,742,256 216,789 2,541,044 1,838,764

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 37,644 11,915,601 (1,642,103) (1,624,521)

OTHER FINANCING SOURCES (USES)
Transfers In 3,082,587 - 54,604 7,800,000
Transfers Out (8,031,669) - - (54,604)
Sale of Capital Assets 33,453 - - -
Proceeds From Capital Lease Obligation 3,306,000 - - -
Total Other Financing Sources (Uses) (1,609,629) - 54,604 7,745,396 NET CHANGE IN FUND BALANCES 37,644 10,305,972 (1,587,499) 6,120,875 Fund Balances - Beginning of Year 50,042,557 12,133,202 (1,450,535) 22,501,686 FUND BALANCES - END OF YEAR $ 12,170,846 60,348,529 $ (3,038,034) $ 28,622,561 $ Capital Projects Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(21)

REVENUES
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Interest and Rentals
Fines and Forfeitures
Contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current
General Government
Public Safety
Community Development
Public Works
Culture and Leisure
Human Services
Capital Outlay
Debt Service
Principal Retirement
Interest and Fiscal Charges
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Sale of Capital Assets
Proceeds From Capital Lease Obligation
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year

FUND BALANCES - END OF YEAR
Capital Projects
Funds
Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds
$ 224,385 - $ 65,647,056 $
- - 2,228,200
4,247,972 - 5,495,267
- - 6,463,339
80,949 41,374 1,514,370
- - 380,754
352,551 - 623,569
29,656 1,300 1,651,106
4,935,513 42,674 84,003,661
487 - 8,521,649
459,876 - 33,162,493
- - 2,758,116
- - 11,324,465
26,753 - 5,029,572
- - 1,418,131
- 4,148,080 12,561,418
-
- - 176,868
- - 21,337
487,116 4,148,080 74,974,049
4,448,397 (4,105,406) 9,029,612
231,669 999,746 12,168,606
(2,927,909) - (11,014,182)
7,425 - 40,878
- - 3,306,000
(2,688,815) 999,746 4,501,302
1,759,582 (3,105,660) 13,530,914
5,005,201 11,155,886 99,387,997
$ 6,764,783 8,050,226 $ 112,918,911 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(22)
Net Change in Fund Balances - Total Governmental Funds $ 13,530,914 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period:

Capital Outlay $ 11,720,320
Depreciation 5,048,843 (6,671,477)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. These amounts are the net effect of these differences in the treatment of long-term debt and related items.

Capital Lease Repayment 176,868
Capital Lease Obligation Issuance (3,306,000) (3,129,132) Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (29,717)
Compensated absence expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (51,213) Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the change in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources. (3,487,695)
Other postemployment benefit expense reported in the governmental funds includes payment of premiums for the current year. In the OPEB expense includes the change in the net other postemployment benefit liability and OPEB related deferred inflows of resources. 2,930,519 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the revenues in the governmental fund activity. 2,575,209
Change in Net Position of Governmental Activities $ 17,387,728

CITY OF SANTA FE SPRINGS, CALIFORNIA
STATEMENT OF NET POSITION — PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(23)
Business-Type
Activity -
Enterprise Fund
Water Fund
ASSETS
Current Assets
Pooled Cash and Investments $ 12,910,744
Receivables
Accounts 1,756,250
Accrued interest 2,483
Inventories 277,216
Deposits and Other Assets 5,767
Restricted:

Cash with Fiscal Agent 556,223
Total Current Assets 15,508,683

NONCURRENT ASSETS
Capital Assets not Being Depreciated 8,375,279
Capital Assets, Net of Depreciation 17,941,217
Total Noncurrent Assets 26,316,496
Total Assets 41,825,179

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 73,127
Deferred Pension-Related Items 917,984
Deferred OPEB-Related Items 487,233
Total Deferred Outflows of Resources 1,478,344

LIABILITIES
Current Liabilities
Accounts Payable 1,360,658
Accrued Liabilities 104,939
Accrued Interest 46,823
Deposits Payable 892,932
Compensated Absences 60,000
Bonds, Notes and Capital Leases 205,000
Total Current Liabilities 2,670,352

NONCURRENT LIABILITIES
Compensated Absences 288,438
Bonds, Notes and Capital Leases 7,584,696
Net OPEB Liability 3,545,146
Net Pension Liability 9,390,531
Total Noncurrent Liabilities 20,808,811
Total Liabilities 23,479,163
DEFERRED INFLOWS OF RESOURCES:

Deferred OPEB-Related Items 451,252
Total Deferred Inflows of Resources 451,252

NET POSITION
Net Investment in Capital Assets 19,154,855
Unrestricted 218,253
Total Net Position $ 19,373,108

CITY OF SANTA FE SPRINGS, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION —

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(24)
Business-Type
Activity -
Enterprise Fund
Water Fund

OPERATING REVENUES
Sales and Service Charges 14,430,951 $
Other Water Revenue 61,605
Total Operating Revenues 14,492,556

OPERATING EXPENSES
Source of Supply 7,539,201
System Maintenance and Operation 2,464,265
Billing and Collection 1,091,627
Administration 1,227,551
Depreciation Expense 646,703
Total Operating Expenses 12,969,347
OPERATING INCOME 1,523,209

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 181,503
Interest Expense (313,569)
Total Nonoperating Revenues (Expenses) (132,066)
INCOME BEFORE TRANSFERS AND CONTRIBUTIONS 1,391,143
Contributions 22,074
Transfers Out (1,154,424)
CHANGE IN NET POSITION 258,793
Net Position - Beginning of Year 19,114,315
NET POSITION - END OF YEAR $ 19,373,108

CITY OF SANTA FE SPRINGS, CALIFORNIA
STATEMENT OF CASH FLOWS — PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(25)
Business-Type
Activity -
Enterprise Fund
Water Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 14,219,739 $
Cash Paid to Suppliers for Goods and Services (10,675,995) Cash Paid to Employees for Services (1,252,505)
Cash Received from Others 61,605
Net Cash Provided by Operating Activities 2,352,844

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Transfers Out (1,154,424)
Net Cash Used by Noncapital Financing Activities (1,154,424)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (465,848) Principal Paid on Capital Debt (200,000)
Interest Paid on Capital Debt (285,714)
Net Cash Used by Capital and Related Financing Activities (951,562)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 181,503
Net Cash Provided by Investing Activities 181,503
NET INCREASE IN CASH AND CASH EQUIVALENTS 428,361
Cash and Cash Equivalents - Beginning of Year 13,038,606 CASH AND CASH EQUIVALENTS - END OF YEAR $ 13,466,967
CASH AND CASH EQUIVALENTS:

Pooled Cash and Investments $ 12,910,744
Cash with Fiscal Agent 556,223
Total Cash and Cash Equivalents 13,466,967 $

RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:

Operating Income $ 1,523,209
Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:

Depreciation 646,703
(Increase) Decrease in Assets:

Accounts Receivable (281,797)
Inventory 20,115
Prepaid Expense (5,767)
Deferred Outflows for Pension-Related Items (59,071)
Deferred Outflows for OPEB-Related Items (34,244)
Increase (Decrease) in Liabilities:

Accounts Payable 513,626
Accrued Liabilities 17,586
Deposits Payable 70,585
Compensated Absences 6,984
Deferred Inflows for Pension-Related Items (121,619)
Deferred Inflows for OPEB-Related Items (89,992)
Net Pension Liability 312,122
Other Postemployments Benefits (165,596)
Net Cash Provided by Operating Activities 2,352,844 $

NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES
Contributed Capital Assets Received $ 22,074
Amortization of Bond Discounts, and Deferred Charges 28,651

CITY OF SANTA FE SPRINGS, CALIFORNIA
STATEMENT OF NET POSITION — FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(26)
Private-Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ASSETS
Pooled Cash and Investments 634,836 $ 295,663 $
Receivables:

Accounts 18,851 -
Notes and Loans - 61,438
Due from Other Governments - 46,913
Land and Buildings Held for Resale - 4,251,851
Restricted Assets:

Cash and Investments with Fiscal Agents 170,030 11,736,756 Capital Assets:

Capital Assets not Being Depreciated - 415,530
Total Assets 804,866 16,827,002

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 214,324
Total Deferred Outflows of Resources - 214,324

LIABILITIES
Accounts Payable - 4,460
Accrued Liabilities - 7,552
Accrued Interest 1,512,542 -
Deposits Payable 826 48,300
Due to Other Governments - 16,485
Long-Term Liabilities:

Due in One Year - 7,808,399
Due in More Than One Year - 51,559,775
Total Liabilities 826 60,957,513

NET POSITION
Held in Bondholders 804,040 -
Held in Trust for Other Purposes - (43,916,187)
Total Net Position 804,040 $ (43,916,187) $

CITY OF SANTA FE SPRINGS, CALIFORNIA
STATEMENT OF CHANGES IN NET POSITION — FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(27)
Private-Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA

ADDITIONS
Taxes $ 10,241,328 - $
Special Assessments or Special Taxes
Collected From Property Owners 209,810 -
Interest and Change in Fair Value of Investments 11 512 Total Additions 209,821 10,241,840

DEDUCTIONS
Administrative Expenses - 247,699
Program Expenses - 60,632
Payment for Special Assessment or Special Tax Debt 165,100 Interest Expense - 2,371,480
Total Deductions 165,100 2,679,811
CHANGE IN NET POSITION 7,562,029 44,721
Net Position - Beginning of Year, as Restated 759,319 (51,478,216) NET POSITION - END OF YEAR $ (43,916,187) 804,040 $
(28)
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CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(29)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Financial Reporting Entity
The City of Santa Fe Springs (City) was incorporated on May 15, 1957, under the general laws of the State of California and enjoys all the rights and privileges pertaining to such “General Law” cities and is governed by an elected five-member City Council. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units. The component units discussed below are included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other.

However, the City elected officials have a continuing accountability for fiscal matters of the other entities. The financial reporting entity consists of: (1) the City, (2) organizations for which the City is financially accountable, and (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit’s balances and transactions are reported in a manner similar to the balances and transactions of the City.

Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the city’s and (1) there is a financial benefit or burden relationship between the primary government and the component unit, or (2) management of the primary government has operational responsibility for the component unit, or the component unit provides services almost entirely to the City.

In accordance with Assembly Bill 1X 26 (the Dissolution Act), the Successor Agency to the Community Development Commission for the City of Santa Fe Springs (Successor Agency) was created on February 1, 2012 to serve as a custodian for the assets and to wind down the affairs of the former Agency. The Successor Agency is a legally separate public entity from the City and as a private-purpose trust fund.

In general, the Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, the Successor Agency will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former Agency until all enforceable obligations of the former Agency have been paid in full and all assets have been liquidated. Based upon the nature of the Successor Agency’s custodial role, the Successor Agency is reported in a fiduciary fund (private-purpose trust fund). See Note 16 for further detail regarding the dissolution.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(30)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Blended Component Units
The City of Santa Fe Springs Public Financing Authority (PFA) was organized under a joint exercise of power agreement on August 24, 1989. The purpose of this authority is to provide, through the issuance of debt, financing for public capital improvements. The Board of Directors is appointed by the City Council. The PFA has no activity in the current year.

The Santa Fe Springs Water Utility Authority (WUA) was organized under a joint exercise of power agreement on July 1, 2009. The purpose of this authority is to provide an entity to assist in financing, leasing, owning, operating, and maintaining the water operation. The City Council members are designated as Board of Directors of the WUA. The WUA has debt outstanding related to the Water Utility Fund and Water Utility Fund revenues are pledged to the payment of the debt.

Separate Successor Agency, PFA, and WUA financial statements are not available.

Joint Powers Agreements
Joint Fire Dispatching Center
The City is a participant in the Joint Fire Dispatching Center (Center). The Center is currently comprised of four member cities and is organized under a Joint Powers Agreement. Each member City provides an annually determined contribution towards the ongoing operation. The purpose of the Center is to provide centralized fire dispatching for the participating cities. The communication system is located in and operated by the City of Downey. The payments from the participating cities for the fiscal year ended June 30, 2021, were based on the following percentages:

Downey 34.62 %
Santa Fe Springs 16.17 %
Compton 39.28 %
Vernon 9.93 %
During the fiscal year ended June 30, 2021, the City contributed $207,459 for the operation of the Center. Separate audited financial statements are not prepared for the Center.

Financial information can be obtained from the City of Downey at 11111 Brookshire Avenue, Downey, California.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(31)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Joint Powers Agreements (Continued)
Southeast Water Coalition
The City is a participant in the Southeast Water Coalition (Coalition). The Coalition is currently comprised of several municipal entities in the County of Los Angeles and is organized under a Joint Powers Agreement. The purpose of the Coalition is to maintain groundwater quality within the Central and West Coast Basins (Basins), maintain secure groundwater supplies within the Basins, manage the use of groundwater within the Basins, coordinate efforts among Watermaster and entities proposing to store water within the Basins for future recovery, facilitate the implementation of a conjunctive use program by water purveyors, coordinate efforts among local entities and Watermaster to devise and implement strategies to safeguard groundwater quality, and work cooperatively with Watermaster, the Water Replenishment District of Southern California, and other entities to promote coordination of policies and activities throughout the region. Each member of the Coalition shares financial responsibility equally. Each member is required to make a contribution at the beginning of each year. The contribution requirement for the fiscal year ended 2021 was $5,000. Financial statements can be obtained from the City of Whitter. City Hall is located at 13230 Penn Street, Whittier, California.

Basis of Accounting and Measurement Focus
The basic 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
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the primary government and component units as a whole, except for its fiduciary activities. These statements report separately for governmental and business-type activities of the primary government (including its blended component units). Governmental activities are normally financed primarily by taxes and intergovernmental revenues. Business-type activities are financed primarily by fees charged for goods or services.

Certain indirect costs have been allocated and are included as part of the program expenses reported for the various functional activities. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are payments-in-lieu of taxes and other service charges between the City’s water utility and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(32)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Government-Wide Financial Statements (Continued)
These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Accordingly, all of the City’s assets and liabilities, including capital assets and infrastructure as well as long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Using the accrual basis of accounting, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue when all eligibility requirements have been satisfied. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Governmental Funds Financial Statements
The accounting records of the City are organized on the basis of funds. Each fund is a separate accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures. 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.

The governmental funds financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all major governmental funds and aggregated nonmajor funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the government-wide financial statements.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(33)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental Funds Financial Statements (Continued)
Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. 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. The City uses an availability period of 60 days, except for grant revenues, which is 365 days and sales tax revenues, which is 90 days. Sales taxes, property taxes, franchise fees, gas taxes, motor vehicle in lieu fees, highway user’s taxes, transient occupancy taxes, grants and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims payable are recorded only when payment is due.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. This fund accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Low and Moderate Income Housing Assets Special Revenue Fund is used to account for the receipts and expenditures relating to the Housing Successor in accordance with the California Health and Safety Code.

The Capital Improvement Capital Projects Fund is used to account for monies received from the General Fund, special revenue funds, private developers and from outside governmental entities. These funds are subsequently used for the construction or rehabilitation of streets, bridges, traffic signals, public facilities and a variety of other construction or improvement projects.

The Prefunded Capital Projects Fund was established in fiscal year 2013. It is used to account for the accumulation of resources used for various construction, rehabilitation, and improvement projects similar to the Capital Improvement Fund. This fund differs from the Capital Improvement Capital Projects Fund in that resources are typically accumulated in the fund prior to undertaking the projects.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(34)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental Funds Financial Statements (Continued)
The Successor Agency Bond Funded Capital Projects Fund is used to account for the expenditure of unspent bond proceeds of the Successor Agency used for various construction, rehabilitation, and improvement projects within the Consolidated Project Area of the former Community Development Commission. All unspent bond proceeds were transferred to the City during fiscal year 2014-15 in accordance with a Bond Expenditure Agreement between the City and Successor Agency.

Additionally, the City reports the following fund types:

Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.

Permanent Funds account for resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support specific programs.

Proprietary Funds Financial Statements
Proprietary Funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.

The principal operating revenues of the City’s proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports the following major proprietary fund:

The Water Fund is used to account for the operations of the City owned water system.

Fiduciary Fund Financial Statements
Fiduciary funds are accounted for on the accrual basis of accounting as are the proprietary funds explained above. The City reports the following fiduciary funds, which are excluded from the government-wide financial statements:

The Private-Purpose Trust Fund accounts for the custodial responsibilities that are assigned to the Successor Agency pursuant to the Dissolution Act.

The City reports the following Custodial funds:

The Assessment Districts Fund is used to account for special assessments received by the City as agent for payment of special assessment district bonds.

The Community Facilities Assessment Districts Fund is used to account for special assessments received by the City as agent for payment of community facilities district debt and expenses.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(35)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Functional Classifications
General government - includes the legislative activities, which have a primary objective of providing legal and policy guidance for industrial and residential issues within the City. Also included in this classification are those activities, which provide management or support services across more than one functional area.

Public safety - includes those activities, which have a primary objective of protecting people and property other than health related perils.

Community development - includes those activities which have a primary objective of enhancing the general quality of life in the City. This encompasses aesthetic, as well as economical and structural activities.

Public works - includes all maintenance and engineering of streets, parks, and other public facilities.

Culture and leisure - includes those activities, which have a primary objective of providing recreational and educational endeavors.

Human services - includes those activities, which have a primary objective of maintaining or improving the physical and/or mental health of residents of the community, improving the employment status of unemployed or underemployed residents, and otherwise serving the needs of the less privileged.

Inventory and Prepaid Items
Inventory (General Fund and Water Fund) is valued utilizing the average cost method.

Inventory items are considered expenditures or expenses when used under the consumption method.

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. These prepaid items are reflected in the financial statements as deposits and other assets and are accounted for under the consumption method.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(36)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property Taxes
Under California law, the assessment, levy and collection of property taxes are the responsibility of the County of Los Angeles. The City records property taxes as revenue in the year for which they are levied, and in the governmental fund statements when received from the County within 60 days of year-end. Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien
Levy period
Due
Delinquent
April 11 - 2nd installment
January 1
July 1 - June 30
November 1 - 1st installment
February 1 - 2nd installment
December 11 - 1st installment
Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. In addition, funds invested in the City’s cash and investment pool are considered cash equivalents.

Investments
All investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale), except for money market investments, which have a remaining maturity of less than one year when purchased, which are stated at amortized cost. Money market investments are short-term, highly liquid debt instruments including commercial paper, bankers’ acceptances, and U.S. Treasury and agency obligations.

Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, sidewalks, drainage systems, lighting systems, etc.) are reported in the applicable governmental or business-type activities columns in the government-wide and enterprise fund financial statements. These assets are stated at historical cost or estimated historical cost if purchased or constructed. The City conducted an infrastructure valuation in conjunction with the implementation of GASB No. 34 during the fiscal year ended June 30, 2002. Current replacement costs were calculated for infrastructure assets and discounted back to the original construction dates and the corresponding accumulated depreciation was calculated. Donated capital assets are stated at their estimated acquisition value on the date received. The capitalization threshold is $20,000, except for vehicles, equipment and streetlights which is $5,000.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(37)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets (Continued)
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of assets are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation is recorded in the government-wide and enterprise fund financial statements on a straight-line basis over the useful life of the assets as follows:

Assets Years
Computer 3
Furniture 10
Machinery and equipment 3 to 20
Vehicles 8
Water service meters and hydrants 10 to 50
Water transmission and distribution mains 10 to 50
Infrastructure 20 to 75
Land and Buildings Held for Resale
Land and related buildings acquired by the former Community Development Commission (former Commission) and held for resale are accounted for as an investment and are recorded at the lower of cost or estimated realizable value, as determined upon the execution of a disposition and development agreement. Upon the dissolution of the former Commission, land and buildings held for resale were transferred to respective Low and Moderate Income Housing Assets Fund and Successor Agency Private-Purpose Trust Fund.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government has three items that qualify for reporting in this category. One item is the deferred charge on refunding reported in the governmentwide, proprietary fund, and fiduciary fund statements of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second and third items are deferred outflows relating to the net pension liability and the net OPEB liability reported in the government-wide, and proprietary statements of net position. These outflows are the results of contributions made after the measurement period, which are recognized in the following year, the net difference between projected and actual earnings on pension plan investments, which is deferred and amortized straight-line over a five-year period, and the adjustments due to change in the employer’s proportion, and the difference between expected and actual experience, which are deferred and amortized over the expected average remaining service lifetime.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(38)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The government has two items that qualify for reporting in this category. One item is the unavailable revenues, which is reported only in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item is deferred inflows relating to the net pension liability and the net OPEB liability reported in the government-wide and proprietary statements of net position. These inflows are the result of the adjustments due to change in assumptions, the difference between expected and actual experience, and the difference between employer’s contributions and the employer’s proportionate share of contributions, which are amortized over the expected average remaining service lifetime.

Compensated Absences
The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have become due and payable as a result of employee resignations or retirements. For sick leave, Fire Safety personnel will receive 25% of the employee’s current hourly pay upon normal service retirement, if the member reaches 90% service credit with CalPERS.

Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of City’s OPEB Plan, the assets of which are held by California Employers’ Retiree Benefit Trust (CERBT), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(39)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.
 Net investment in capital assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category.  Restricted - This category represents restricted assets reduced by liabilities related to those assets. Restrictions can be imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
 Unrestricted - This category represents net position of the City, not restricted for any project or other purpose.

Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed Fund Balances
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2021, fund balances for government funds are made up of the following:
 Nonspendable Fund Balance - includes amounts that are (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: inventory, prepaid amounts, and long-term notes receivable.  Restricted Fund Balance - includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.
 Committed Fund Balance - includes amounts that can only be used for the specific purposes determined by a resolution of the City’s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City adopting a resolution.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(40)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balances (Continued)
 Assigned Fund Balance - comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council to which the City Council has delegated the authority to assign amounts to be used for specific purposes.
 Unassigned Fund Balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Other governmental funds may only report a negative unassigned balance that was created after classification in one of the other four fund balance categories.

In circumstances when expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to first apply committed fund balance. It is at the discretion of the Council’s designee to then apply the remaining expenditures to assigned or unassigned fund balance.

The City Council delegates to the City Manager and Director of Finance and Administrative Services the authority to assign unrestricted fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Endowments
The City has been the recipient of endowments that are recorded in Permanent Funds. The endowments are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs or specific restrictions that were placed on the endowment when the donation to the City was made.

Stewardship, Compliance and Accountability
Deficit Fund Balance
At June 30, 2021 the Capital Improvement fund had a deficit fund balance of $3,038,034 and the Fire Grants fund had a deficit fund balance of $241,677. These funds are on a cost reimbursement basis. The deficit resulted from timing differences between when expenditures are incurred and the recognition of grant revenue. These funds will be replenished with reimbursements from grantor.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(41)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Stewardship, Compliance and Accountability (Continued
Expenditures in Excess of Appropriations
The following funds reported expenditures in excess of the adopted budget:
 Community Development Block Grant ($10,253)
New Accounting Pronouncements
In January 2017, GASB issued Statement No. 84 – Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets.

The City adopted this statement in the current fiscal year. The implementation of this statement resulted in changing the presentation of the financial statements by including net position to Custodial Funds that was not previously required. Beginning net position of Custodial Funds was increased by $759,319 to reflect this change. See Note 16.

NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2021, are classified in the accompanying financial follows:

Statement of Net Position:

Pooled Cash and Investments 114,480,610 $
Cash and Investments with Fiscal Agent 556,223
Fiduciary Funds:

Pooled Cash and Investments 930,499
Cash and Investments with Fiscal Agent 11,906,786
Total 127,874,118 $
Cash and investments were comprised of the following as of June 30, 2021:

Cash on Hand 53,555 $
Deposits with Financial Institutions 3,548,495
California Employers' Pension Prefunding Trust* 10,000,873 Investments 114,271,195
Total 127,874,118 $
* Disclosures related to investments in CalPERS’ California Employers’ Pension Prefunding Trust related to interest rate risk and fair value are available online.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(42)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the City’s Investment Policy
The City’s Statement of Investment Policy (investment policy), is adopted by the City Council. The investment policy is more conservative and restrictive than the investment vehicles authorized by Section 53601 of the California Government Code. The City’s investment policy does not allow investments in stocks, inverse floaters, range notes, mortgage-derived, interest-only strips, or any security that could result in zero interest accrual if held to maturity. Investment vehicles not specifically mentioned in the City’s investment policy are not authorized unless the policy is amended by the City Council or are approved as part of the provisions of the bond indentures. Investments are limited to:

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio* One Issuer U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Municipal Obligations 5 years 30% 5%
Bankers' Acceptances 180 days 40% 5%
Commercial Paper 270 days 25% 10%
Medium-Term Notes 5 years 30% 5%
Time Certificates of Deposit 3 years 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Supranationals 5 years 30% None
Asset-Backed Securities 5 years 20% 5%
Money Market Mutual Funds N/A 20% None
Local Agency Investment Fund (LAIF) N/A $75 million None Los Angeles County Pooled Fund N/A None None
Local Government Investment Pools (LGIPs) N/A None None *Excluding amounts held by bond trustee that are subject to California Code restrictions Investments Authorized by Debt Agreements
Investments of debt proceeds held by 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. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Bankers' Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 years None None
Local Agency Investment Fund (LAIF) N/A None None

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(43)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table:
12 Months 13 to 24 25 to 36 37 to 48 48 to 60
Investment Type or Less Months Months Months Months Total U.S. Treasury Obligations - $ - $ 7,836,862 $ 4,308,099 $ 2,488,289 $ 14,633,250 $ U.S. Agency Securities:

Federal Home Loan
Mortgage Corporation (FHLMC) - 675,248 506,402 289,643 783,979 2,255,272 Federal National Mortgage
Association (FNMA) - 1,201,682 2,233,180 - 680,516 4,115,378 Federal Home Loan Bank (FHLB) - - 327,532 - - 327,532
Municipal Obligations - 106,547 328,227 514,430 257,542 1,206,746 Medium-Term Notes - 1,504,373 2,331,036 1,461,279 433,822 5,730,510 Negotiable Certificates of Deposit (CD) 654,297 1,502,547 - - - 2,156,844 Supranationals - 410,186 199,426 - - 609,612
Federal Agency Collateralized
Mortgage Obligation 3,853 1,307,282 10,287 76,899 - 1,398,321 Asset-Backed Securities 478 157,813 782,962 530,500 300,067 1,771,820 Money Market Funds 63,922 63,922
Local Agency Investment Fund (LAIF) 67,538,978 - - - - 67,538,978 Held by Bond Trustee:

Money Market Funds 12,463,010 - - - - 12,463,010
Total $ 6,865,678 80,724,538 $ 14,555,914 $ 7,180,850 $ 4,944,215 $ 114,271,195 $ Remaining Maturity (in Months)
Credit Risk
The City’s investment policy limits investments to a rating of “A-1” or higher for California state and local agency obligations, banker acceptances, and commercial paper that is (i) organized within the United States as a special purpose corporation, trust, or limited liability company and (ii) has program wide credit enhancements including, but not limited to, over collateralization, letters of credit. The City’s investment policy limits investments to a rating of “A-1” or higher for other state obligations, medium-term notes, asset backed securities and commercial paper that is (i) organized and operating in the United States as a general corporation and (ii) has total assets in excess of five hundred million dollars ($500,000,000). The City’s investment policy limits investments to a rating of “AA” or higher for supranationals. As of June 30, 2020, the City’s investments in external investment pools and money market mutual funds are unrated.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(44)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City’s investments are rated by the following nationally recognized statistical rating organization as follows:

Minimum
Total as of Legal Not
Investment Type June 30, 2021 Rating AAA AA A BBB Rated U.S. Treasury Obligations 14,633,250 $ N/A - $ 14,633,250 $ - $ - $ - $ U.S. Agency Securities:

FHLMC 2,255,272 N/A - 2,255,272 - - -
FNMA 4,115,378 N/A - 4,115,378 - - -
FHLB 327,532 N/A - 327,532 - - -
Municipal Obligations 1,206,746 A - 596,097 414,350 196,299 Medium-Term Notes 5,730,510 A - 765,351 3,757,220 1,207,939 - Negotiable CD 2,156,844 A - 664,705 1,492,139 - -
Supranationals 609,612 AA 609,612 - - - -
Federal Agency Collateralized
Mortgage Obligation 1,398,321 AA - 1,398,321 - - -
Asset-Backed Securities 1,771,820 AA 1,421,298 - - - 350,522 Money Market Funds 63,922 N/A 63,922 - - - -
LAIF 67,538,978 N/A - - - - 67,538,978
Held by Bond Trustee:

Money Market Funds 12,463,010 AAA 12,463,010 - - - -
Total 114,271,195 $ 14,557,842 $ 24,755,906 $ 5,663,709 $ 1,207,939 $ 68,085,799 $ Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments held that represent 5% or more in any one issuer other than external investment pools and money market funds at June 30, 2021.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(45)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investment 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. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s prorata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets (significant other observable inputs); Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2021:

Investment Type Totals 1 2
U.S. Treasury Obligations 14,633,250 $ 14,633,250 $ - $ U.S. Agency Securities:

FHLMC 2,255,272 - 2,255,272
FNMA 4,115,378 - 4,115,378
FHLB 327,532 - 327,532
Municipal Obligations 1,206,746 - 1,206,746
Medium-Term Notes 5,730,510 - 5,730,510
Negotiable Certificates of Deposit 2,156,844 - 2,156,844 Supranationals 609,612 - 609,612
Federal Agency Collateralized
Mortgage Obligation 1,398,321 - 1,398,321
Asset-Backed Securities 1,771,820 - 1,771,820
Totals 34,205,285 14,633,250 $ 19,572,035 $
Not Subject to Fair Value Measurement
Hierarchy:

Money Market Funds 63,922
Local Agency Investment Fund (LAIF) 67,538,978
Held by Bond Trustee:

Money Market Funds 12,463,010
Total Investments 114,271,195 $
Level

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(46)
NOTE 3 LOANS AND NOTES RECEIVABLE
The loans and notes receivable balance consist of the following:

Fund Balance
Governmental Funds
General Fund 376,374 $
Low and Moderate Income Housing Assets
Special Revenue Fund 1,665,017
Successor Agency Bond Funded Capital
Projects Fund 134,045
Nonmajor Governmental Funds 19,250
Total Funds 2,194,686 $
The General Fund has loans and notes receivable in the amount of $32,707 representing monies advanced to City employees for home computer purchases. These loans are required to be repaid within 2 years and bear no interest. Notes receivable in the amount of $343,667 relate to monies advanced to Community Facilities District 2002-1 for infrastructure improvements. This loan bears an interest rate of 5.75% per annum.

The Low and Moderate Income Housing Assets Special Revenue Fund has one note outstanding for “silent second” mortgage notes issued to qualified buyers to assist with housing acquisition. The loans are for $20,000 and has a term of 15 years. The loan has no payments for the first 10 years and bear simple interest at 6% per annum. The loan is secured by a deed of trust and must be repaid upon sale or refinance of the home. The balance outstanding at June 30, 2021, is $20,000. In addition, the Low and Moderate Income Housing Assets Special Revenue Fund has ten notes outstanding related to housing for qualified buyers. The loans are secured by a deed of trust and must be repaid upon sale or refinance of the home if such a transaction occurs within 45 years. A portion of the loan balance is forgiven each year beginning five years after issuance and is completely forgiven after 45 years. An allowance for the full amount of the loans has been recorded as the expectation is for the homeowners to keep the properties for the entire term of the agreement. The balance outstanding at June 30, 2021 is $822,510 with a net carrying value of $0. The loans do not accrue interest. Lastly, the Low and Moderate Income Housing Assets Special Revenue Fund has notes outstanding to Santa Fe Springs Housing Partners in the amount of $1,645,017 at June 30, 2021. The loan agreement calls for annual payments based on a calculation of residual receipts. The residual receipts are calculated based on the project revenues less approved expenses. The residual receipts payment is applied first to interest and then to principal. The outstanding principal accrues interest at a rate of 3%.

The Successor Agency Bond Funded Capital Projects Fund has a note receivable in the amount of $134,045 related to monies advanced by the former Commission to Community Facilities District 2004-1 for infrastructure improvements. This loan bears interest at a rate of

5.75% per annum.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(47)
NOTE 3 LOANS AND NOTES RECEIVABLE (CONTINUED)
The Nonmajor Governmental Funds have two notes receivable outstanding from homeowners through the CDBG housing program. The loans have zero interest and do not require repayment. The loans are secured by a deed of trust and must be repaid upon sale or refinance of the home. The balance outstanding at June 30, 2021, is $19,250.

NOTE 4 DUE FROM OTHER GOVERNMENTS
Due from other governments primarily consists of grants due from the Federal government, the State of California and the County of Los Angeles.

NOTE 5 INTERFUND ACTIVITY
The following is a summary of interfund transfers for the fiscal year ended June 30, 2021:

Prefunded Nonmajor Water
Capital Projects Governmental Enterprise
Transfers In: General Fund Fund Funds Fund Total
General Fund - $ - $ 1,928,163 $ 1,154,424 $ 3,082,587 $ Capital Improvement - 54,604 - - 54,604
Prefunded Capital Projects Fund 7,800,000 - - - 7,800,000 SA Bond Funded Capital Projects - - 999,746 - 999,746
Nonmajor Governmental Funds 231,669 - - - 231,669
Total 8,031,669 $ 54,604 $ 2,927,909 $ 1,154,424 $ 12,168,606 $ Transfers Out:

The General Fund transferred $7,800,000 into the Prefunded Capital Projects Funds to provide funding for current and future capital projects. The General Fund transferred $231,669 to the Nonmajor Governmental Funds for a public safety grant match.

The Water Fund transferred $1,000,000 into the General Fund in connection with the lease agreement between the City and the City’s Water Utility Authority and $154,424 for NPDES street purposes and other computer replacements.

Prefunded Capital Projects Fund transferred $54,604 into Capital Improvement Fund for cost related to a capital project.

Nonmajor Governmental Funds transferred $1,928,163 into the General Fund for various purposes including eligible expenditures incurred related to public safety, Gas Tax, Metro Grants, Art in Public Places activities, COVID-19 response, and $999,746 into the Successor Agency Bond Funded Capital Projects Fund for costs incurred related to capital projects.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(48)
NOTE 5 INTERFUND ACTIVITY (CONTINUED)
Due to/from other funds at June 30, 2021, were as follows:

Capital Nonmajor
General Improvement Governmental
Due from Fund Fund Funds Total
General Fund - $ 4,446,455 $ 609,212 $ 5,055,667 $
Successor Agency Bond - - 66,971 66,971
Nonmajor Governmental Funds 7,425 - - 7,425
Total 7,425 $ 4,446,455 $ 676,183 $ 5,130,063 $
Due to
The due to/from other funds balances resulted from reimbursable expenditures occurring while the revenues with which to reimburse those expenditures had not yet been received.

All balances are expected to be reimbursed within the subsequent year.

Advances from other funds and advances to other funds at June 30, 2021, consist of loans as follows:

Advances from
Low and
Moderate
Income Housing
Advances to Assets Fund
General Fund 1,437,861 $
An advance payable/receivable was set up between the General Fund and the Low and Moderate Income Housing Assets Fund (Housing Fund) to account for costs originally charged to the Housing Fund but later determined to belong to the General Fund. The advance does not bear interest. Currently, there is no date set for the repayment of the advance.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(49)
NOTE 6 CAPITAL ASSETS
Additions and deletions in the City’s capital assets were as follows:

Balance Balance
June 30, 2020 Additions Deletions June 30, 2021
Governmental Activities:

Capital Assets, not Being Depreciated
Land 56,295,501 $ - $ - $ 56,295,501 $
Construction in Process 2,748,208 9,732,160 7,249,296 5,231,072 Total Capital Assets not Being
Depreciated 59,043,709 9,732,160 7,249,296 61,526,573
Capital Assets, Being Depreciated:

Buildings 34,208,518 - - 34,208,518
Improvements 26,312,434 310,546 - 26,622,980
Equipment 15,074,095 1,988,160 289,377 16,772,878
Infrastructure 155,701,564 6,938,750 - 162,640,314
Total Capital Assets, Being
Depreciated 231,296,611 9,237,456 289,377 240,244,690
Less Accumulated Depreciation
Buildings 14,355,822 651,670 - 15,007,492
Improvements 19,223,293 710,820 - 19,934,113
Equipment 11,257,176 928,445 289,377 11,896,244
Infrastructure 82,834,826 4,380,542 - 87,215,368
Total Accumulated Depreciation 127,671,117 6,671,477 289,377 134,053,217 Total Capital Assets, Being
Depreciated, Net 103,625,494 2,565,979 - 106,191,473
Government Activities Capital
Assets, Net 162,669,203 $ 12,298,139 $ 7,249,296 $ 167,718,046 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(50)
NOTE 6 CAPITAL ASSETS (CONTINUED)
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Business-Type Activities:

Capital Assets, not Being Depreciated
Land and Water Rights 3,384,974 $ - $ - $ 3,384,974 $
Construction in Process 5,168,427 487,922 666,044 4,990,305 Total Capital Assets not Being
Depreciated 8,553,401 487,922 666,044 8,375,279
Capital Assets, Being Depreciated:

Source of Supply Plant 4,622,244 - - 4,622,244
Transmission and Distribution Plant 36,919,115 666,044 - 37,585,159 Pumping and Treatment Plant 111,016 - - 111,016
General Plant 1,096,135 - - 1,096,135
Total Capital Assets, Being
Depreciated 42,748,510 666,044 - 43,414,554
Less Accumulated Depreciation
Source of Supply Plant 2,467,321 88,952 - 2,556,273
Transmission and Distribution Plant 21,160,029 555,259 - 21,715,288 Pumping and Treatment Plant 103,149 2,492 - 105,641
General Plant 1,096,135 - - 1,096,135
Total Accumulated Depreciation 24,826,634 646,703 - 25,473,337 Total Capital Assets, Being
Depreciated, Net 17,921,876 19,341 - 17,941,217
Water Utility
Capital Assets, Net 26,475,277 $ 507,263 $ 666,044 $ 26,316,496 $ Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental Business-Type
Activities Activities
General Government 188,599 $ - $
Public Safety 878,658 -
Community Development 67,395 -
Transportation 4,643,066 -
Culture and Leisure 644,908 -
Human Services 248,851 -
Water Utility 646,703
Total Governmental Activities 6,671,477 $ 646,703 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(51)
NOTE 7 LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the fiscal year ended June 30, 2021:

Balance Balance Due Within
July 1, 2020 Additions Reductions June 30, 2021 One Year Governmental Activities:

Capital Leases:

Fire Equipments Lease - $ 3,306,000 $ - $ 3,306,000 $ 448,199 $ Fire Air and Light Vehicle Lease 346,607 - 83,116 263,491 85,430 Motorola Radios Lease 2018 292,638 - 93,752 198,886 97,497 Total 639,245 $ 3,306,000 $ 176,868 $ 3,768,377 $ 631,126 $ Business-Type Activities:

Water Revenue Bonds Payable:
2013 Series A 6,890,000 $ - $ - $ 6,890,000 $ - $
2018 Subordinate Bonds 1,225,000 - 200,000 1,025,000 205,000 Issuance Discount/Premiums (131,271) - 5,967 (125,304) - Total 7,983,729 $ - $ 205,967 $ 7,789,696 $ 205,000 $
The total annual debt service requirements to maturity on bonds and loans are as follows:

Year Ending June 30, Principal Interest
2022 631,126 $ 21,338 $
2023 645,197 15,279
2024 554,185 9,007
2025 472,005 2,513
2026 480,218 25,506
2027-2031 985,646 25,799
Total 3,768,377 $ 99,442 $
Year Ending June 30, Principal Interest
2022 205,000 $ 280,935 $
2023 210,000 276,036
2024 215,000 271,017
2025 220,000 265,878
2026 240,000 260,620
2027-2031 1,600,000 1,171,975
2032-2036 1,900,000 871,925
2037-2041 2,285,000 485,538
2042-2043 1,040,000 62,800
Total 7,915,000 $ 3,946,724 $
Governmental Activities
Capital Lease Payable
Business-Type Activities
Revenue Bonds

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(52)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities
Fire Equipment Lease
In November 2020, the City entered into a lease agreement for $3,306,000 with Bank of America to lease a fire engine and fire equipment. Payments are due annually in the amount of $505,724 on November 17 each year at an annual interest rate of 1.74% with the lease expiring on November 17, 2027. The current balance outstanding for this lease is $3,306,000. The asset cost and accumulated depreciation as of June 30, 2021, is $3,064,785 and $48,105, respectively.

Fire Air & Light Vehicle Lease
In September 2017, the City entered into a lease agreement for $598,911 with Community First National Bank to lease an Air & Light Vehicle for the Fire department. Payments are due annually in the amount of $92,765 on September 1, each year at an annual interest rate of 2.73%; with the lease expiring on September 1, 2023. The current balance outstanding for this lease is $263,491. The asset cost and accumulated depreciation as of June 30, 2021, is $598,911 and $149,728, respectively.

Motorola Radios Lease
In November 2018, the City entered into a lease agreement for $488,231 with Community First National Bank to lease Motorola radios for the Police department. Payments are due annually in the amount of $105,440 on November 20, each year at an annual interest rate of

3.92%; with the lease expiring on November 20, 2022. The current balance outstanding for this lease is $198,886 The asset cost and accumulated depreciation as of June 30, 2021, is $488,231 and $174,368, respectively.

Business-Type Activities
Water Refunding Revenue Bonds, 2013
In May 2013, in order to take advantage of a low interest rate market and to capture economic savings, the City “currently refunded” the 2003 Water Revenue Bond Series A.

The 2013 Revenue Bonds were issued to (1) provide funds for the refunding of the PFA’s 2003 Water Revenue Bond Series A; (2) finance improvements to the water utility enterprise; (3) fund a deposit to a debt service reserve fund for the 2013 bonds; and (4) pay the costs of issuance associated with the issuance and sale of the 2013 Revenue Bonds.

The 2013 Revenue Bonds are due from 2026 through 2043 in annual principal installments of $65,000 to $530,000. Interest rates range from 3% to 4% and interest is payable semiannually on November 1 and May 1. The total outstanding principal as of June 30, 2021, is $6,890,000.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(53)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Water Refunding Revenue Bonds, 2013 (Continued)
The 2013 Revenue Bonds are payable from and secured by net revenues of the City’s water system and facilities. The City has covenanted in the Installment Sale Agreement to set rates and charges for water services for its customers sufficient to provide net revenues each fiscal year equal to at least 120% of the debt service due in such fiscal year. Net revenue is determined by the gross revenues received during such period minus the amount required to pay all operation and maintenance costs becoming payable during such period.

Net revenue pledged to these bonds for the current year was $2,169,912 against debt service payments of $256,438.

If any event of default shall occur, then the Trustee may, and at the written direction of the owners of a majority in aggregate principal amount of the 2013 Revenue Bonds then outstanding, shall declare the principal of the 2013 Revenue Bonds, together with the accrued interest thereon, to be due and payable immediately.

Water Refunding Revenue Bonds, 2018
In January 2018, in order to take advantage of a low interest rate market and to capture economic savings, the City “currently refunded” the 2005 Water Revenue Bond Series A.

The 2018 Revenue Bonds were issued to (1) provide funds for the refunding of the PFA’s 2005 Water Revenue Bond Series A; (2) finance improvements to the water utility enterprise; and (3) pay the costs of issuance associated with the issuance and sale of the 2018 Revenue Bonds.

The 2018 Revenue Bonds are due from 2018 through 2026 in annual principal installments of $175,000 to $220,000. The interest rate is 2.39% and interest is payable semiannually on May 1 and November 1. The total outstanding principal as of June 30, 2021, is $1,025,000.

The 2018 Revenue Bonds are payable from and secured by net revenues of the City’s water system and facilities on a subordinate basis to the 2013 Revenue Bonds. Net revenue is determined by the gross revenues received during such period minus the amount required to pay all operation and maintenance costs becoming payable during such period. Net revenue pledged to these bonds for the current year was $2,169,912 against debt service payments of $229,498.

If any event of default shall occur, then the Trustee may, and at the written direction of the owners of a majority in aggregate principal amount of the 2018 Revenue Bonds then outstanding, shall declare the principal of the 2018 Revenue Bonds, together with the accrued interest thereon, to be due and payable immediately.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(54)
NOTE 8 COMPENSATED ABSENCES
Compensated absences consist of amounts due to employees for earned but unused vacation and sick leave balances. Compensated absences are primarily liquidated from the General Fund.

Balance Balance Due Within
July 1, 2020 Additions Reductions June 30, 2021 One Year Governmental Activities 2,503,993 $ 436,301 $ 385,088 $ 2,555,206 $ 440,000 $ Business-Type Activities 341,454 59,496 52,512 348,438 60,000 Total Compensated Absences 2,845,447 $ 495,797 $ 437,600 $ 2,903,644 $ 500,000 $ NOTE 9 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Santa Fe Springs is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of selfinsured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(55)
NOTE 9 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM (CONTINUED)
Primary Self-Insurance Programs of the Authority (Continued) Primary Liability Program (Continued)
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2020-21 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance
Pollution Legal Liability Insurance
The City of Santa Fe Springs participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Santa Fe Springs.

Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance
The City of Santa Fe Springs City of Santa Fe Springs participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Santa Fe Springs property is currently insured according to a schedule of covered property submitted by the City of Santa Fe Springs to the Authority.

City of Santa Fe Springs property currently has all-risk property insurance protection in the amount of $114,423,995. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(56)
NOTE 9 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM (CONTINUED)
Purchased Insurance (Continued)
Earthquake and Flood Insurance
The City of Santa Fe Springs purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Santa Fe Springs property currently has earthquake protection in the amount of $49,736,818. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance
The City of Santa Fe Springs purchases crime insurance coverage in the amount of $5,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21.

NOTE 10 PENSION PLAN OBLIGATIONS
a. General Information About the Pension Plan
Plan Description
The City contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer defined benefit pension plan for the miscellaneous employees and a cost-sharing multiple-employer public employee defined benefit pension plan for the public safety employees that acts as a common investment and administrative agent for participating public entities within the State of California. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. All full-time employees are eligible to participate in PERS.

Part-time employees are not eligible to participate in PERS retirement system but participate in a defined contribution plan. Benefit provisions for the Plans are established by State statute’s and City resolution. Copies of PERS’ annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814.

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 fulltime employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(57)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
a. General Information About the Pension Plan (Continued) Benefits Provided (Continued)
The Plan provisions and benefits for the fiscal year ended June 30, 2021, are summarized as follows:

Tier 1* Tier 2* PEPRA
November 19, 2012
Prior to but prior to January 1, 2013
Hire Date November 19, 2012 January 1, 2013 and After
Benefit Formula 2.7%@55 2.0%@55 2.0%@62
Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Minimum Retirement Age 50 50 52
Monthly Benefits, as a % of 2.000% - 2.700%, 1.426% - 2.418%, 1.000% - 2.500%, Eligible Compensation 50 yrs - 55+ yrs, 50 yrs - 63+ yrs, 52 yrs - 67+ yrs, Required Employee Contribution Rates 8.00% 7.00% 6.50%
Required Employer Contribution Rates 11.908% 11.908% 11.908% Tier 1* Tier 2* PEPRA
November 19, 2012
Prior to but prior to January 1, 2013
Hire Date November 19, 2012 January 1, 2013 and After
Benefit Formula 3.0%@50 3.0%@55 2.7%@57
Benefit Vesting Schedule 5 years service 5 years service 5 years service Benefit Payments monthly for life monthly for life monthly for life Minimum Retirement Age 50 50 50
Monthly Benefits, as a % of 2.400% - 3.000%, 2.000% - 2.700%, Eligible Compensation 3.000%, 50+ yrs 50 yrs - 55+ yrs, 50 yrs - 57+ yrs, Required Employee Contribution Rates 9.000% 9.000% 13.750% Required Employer Contribution Rates 25.540% 22.397% 13.884% *Plan is closed to new entrants. The PEPRA plan was enacted for new members hired after January 1, 2013.

Miscellaneous Plan
Safety Cost-Sharing Rate Plans
Employees Covered
For the measurement period ended June 30, 2020, the following employees were covered by the benefit terms of the Miscellaneous Plan:

Number of
Description Members
Active Members 115
Transferred Members 35
Terminated Members 32
Retired Members and Beneficiaries 218
Total 400

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(58)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
a. General Information About the Pension Plan (Continued) Contribution Description
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 liability for governmental activities is primarily liquidated from the general fund and the liability for business-type activities is liquidated from the water enterprise fund.

Employer contributions for the miscellaneous and safety plans for fiscal year ended June 30, 2021, was 6,557,278 and $4,789,061, respectively.
b. Net Pension Liability
The net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the subsequent page.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(59)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
b. Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Projected Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefit Increase (3) (3)
Varies by entry age and service.
(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 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to to the CalPERS Experience Study and Review of Actuarial Assumptions report from (3) The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.

December 2017 that can be found on the CalPERS website.

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.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(60)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
b. Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
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 fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short term and long term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:

Assumed Real Return Real Return
Asset Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00 % 4.80 % 5.98 %
Fixed Income 28.00 1.00 % 2.62 %
Inflation Assets - 0.77 % 1.81 %
Private Equity 8.00 6.30 % 7.23 %
Real Assets 13.00 3.75 % 4.93 %
Liquidity 1.00 - % (0.92)%
Total 100.00 %
(a) In the CalPERS Annual Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities
(b) An expected inflation of 2.00% used for this period (c) An expected inflation of 2.92% used for this period Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(61)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
c. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous Plan.

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2019
(Measurement Date) $ 105,422,326 181,075,736 $ 75,653,410 $ Changes in the Year:

Service Cost 1,567,189 - 1,567,189
Interest on the Total Pension Liability 12,629,742 - 12,629,742 Differences Between Actual and
Expected Experience 268,043 - 268,043
Contribution - Employer - 5,957,285 (5,957,285)
Contribution - Employee - 855,704 (855,704)
Net Investment Income - 5,199,591 (5,199,591)
Administrative Expenses (148,620) 148,620
Benefit Payments, Including Refunds
of Employee Contributions (10,975,249) (10,975,249) -
Net Changes 888,711 3,489,725 2,601,014
Balance at June 30, 2020
(Measurement Date) $ 106,311,037 184,565,461 $ 78,254,424 $ Increase (Decrease)
As of June 30, 2021, the City Safety Plan reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:

Proportionate
Share of Net
Pension Liability
Safety Plan 55,271,784 $
The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Safety Plan is measured as of June 30, 2020, and the total pension liability for the Safety Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(62)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
c. Changes in the Net Pension Liability (Continued)
The City’s proportionate share of the net pension liability for the Safety Plan as of measurement period ended June 30, 2019 and 2020, was as follows:

Safety Cost-Sharing Plan
Proportion - June 30, 2019 0.81779%
Proportion - June 30, 2020 0.82961%
Change - Increase (Decrease) 0.01182%
Safety Cost-Sharing Plan
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan’s as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:

Discount Current Discount
Rate - 1% Discount Rate + 1%

6.15% 7.15% 8.15%
Miscellaneous Plan 100,309,135 $ 78,254,424 $ 59,829,295 $ Safety Plan 78,993,222 55,271,784 35,806,100
Total Net Pension Liability 179,302,357 $ 133,526,208 $ 95,635,395 $ Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets.

These amounts are excluded for rate setting purposes in the funding actuarial valuation.

In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

See CalPERS website for additional information.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(63)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $7,657,100 and $7,309,923 for the Miscellaneous and Safety Plan, respectively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ - 6,557,278 $
Differences Between Expected and
Actual Experience - 438,876
Net Differences Between Projected and Actual
Earnings on Plan Investments 653,717 -
Total 7,649,871 $ - $
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ - 4,786,061 $
Difference Between Expected and
Actual Experiences 4,286,047 -
Change in Assumptions (184,111) -
Net Differences Between Projected and Actual
Earnings on Plan Investments 1,201,289 -
Change in Employer's Proportion 882,745 -
Differences Between the Employer's
Contributions and the Employer's Proportionate
Share of Contributions (2,343,711) -
Total 11,156,142 (2,527,822)
Total All Plans 18,806,013 $ (2,527,822) $
Miscellaneous Plan
Safety Plan
$6,557,278 and $4,786,061 reported in the Miscellaneous and Safety Plans, respectively, as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(64)
NOTE 10 PENSION PLAN OBLIGATIONS (CONTINUED)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Measurement Period Ending June 30, Miscellaneous Safety Total 2022 (153,723) $ 530,378 $ 376,655 $
2023 277,842 1,529,807 1,807,649
2024 531,922 1,180,160 1,712,082
2025 436,552 601,914 1,038,466
2026 - - -
Thereafter - - -
Total 1,092,593 $ 3,842,259 $ 4,934,852 $
Deferred Outflows/(Inflows) of Resources
e. Payable to the Pension Plans
At June 30, 2021, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2021.

NOTE 11 POSTEMPLOYMENT HEALTH CARE BENEFITS
The City provides an agent multiple employer OPEB plan to retirees through the California Employers’ Retiree Benefit Trust (CERBT). Information on the plan is available from CalPERS on their website www.calpers.ca.gov.
a. Plan Description
The City contributes to the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-employer public employee defined postemployment benefit plan. The City provides retiree medical benefits under the PERS health plan, which provides medical insurance benefits to eligible retirees and their beneficiaries in accordance with various labor agreements. Copies of the PERS’ annual financial report may be obtained from the PERS Executive Office, 400 P Street, Sacramento, CA 95814.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(65)
NOTE 11 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) b. Eligibility and Employees Covered
Employees are eligible for retiree health benefits if they retire from the City on or after age 50 (unless disabled) with 5 years or service and are eligible for a PERS pension.

The benefits are available only to employees who retire from the City. At measurement date ended June 30, 2020, the benefit terms covered the following employees:

Management Miscellaneous Fire Total
Retirees and Beneficiaries
Receiving Benefits 51 105 81 237
Active Plan Members 31 78 52 161
Total 82 183 133 398
These amounts do not reflect current retirees not enrolled in the PERS health plan that are eligible to enroll in the plan at a later date.
c. Contributions
The City currently contributes the full Actuarially Determined Contribution (ADC) to the CERBT OPEB trust, in addition to paying benefit payments outside the trust. For the fiscal year ended June 30, 2021, the City’s contributed $1,607,000 to the CERBT, paid $2,752,735 for current premiums, and the estimated implied subsidy was $645,000, resulting in total contributions of $5,011,731.
d. Investments
The CERBT was established for public agencies to pre-fund other postemployment benefit obligations. Employers may choose amount three different investment strategies.

The City of Santa Fe Springs has selected Strategy 1. Compared with CERBT Strategy 2 and Strategy 3, this portfolio consists of a higher percentage of equities than bonds and other assets. The following was the investment committee approved asset allocation targets as of October 1, 2018:

Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 59.0 % 4.82 %
U.S. Fixed Income 25.0 1.47
TIPS 5.0 1.29
Commodities 3.0 0.84
REITs 8.0 3.76
Total 100.0 %

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(66)
NOTE 11 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) e. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures.

A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Contribution Policy City contributes full ADC
Discount Rate 6.75%
Inflation 2.75%
Salary Increases Aggregate - 3%
Merit - CalPERS 1997-2015 Experience Study
Healthcare Cost Trend Rates Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years
Medicare - 6.30% for 2021, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Mortality Rate Mortality Rate projected fully generational with Scale MP-2019
Mortality, Retirement, Disability,
Terminations CalPERS 1997-2015 Experience Study
The actuarial assumptions used in the June 30, 2019 valuation, rolled forward to June 30, 2020, were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City. f. Discount Rate
The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(67)
NOTE 11 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) g. Changes in the Net OPEB
The changes in the Net OPEB Liability for the Plan are as follows:

Total Plan Net OPEB
OPEB Fiduciary Liability (Asset)
Liability (a) Net Position (b) (c)=(a)-(b)
Balance at June 30, 2019
(Measurement Date) $ 19,477,772 60,708,227 $ 41,230,455 $ Changes Recognized for the
Measurement Period:

Service Cost 966,145 - 966,145
Interest on Total OPEB Liability 4,051,589 - 4,051,589
Changes of Assumptions (1,048,245) - (1,048,245)
Contributions-Employer - 5,033,207 (5,033,207)
Net Investment Income - 793,628 (793,628)
Benefit Payments, Including Refunds
of Employee Contributions (3,301,649) (3,301,649) -
Administrative Expense - (17,396) 17,396
Net Changes 2,507,790 667,840 (1,839,950)
Balance at June 30, 2020
(Measurement Date) $ 21,985,562 61,376,067 $ 39,390,505 $ (1) Contributions-employer amount includes implicit subsidy associated with benefits paid Increase (Decrease)
h. Change in Assumptions
From measurement date June 30, 2019, to June 30, 2020, the liability for the ACA Excise Tax, which was repealed in December 2019, was removed. i. Subsequent Event
There were no subsequent events that would materially affect the results presented in this disclosure.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(68)
NOTE 11 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) j. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current discount rate:

Discount Current Discount
Rate -1% Discount Rate + 1%

5.75% 6.75% 7.75%
Net OPEB Liability (Asset) 47,351,881 $ 39,390,505 $ 32,854,185 $ k. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentagepoint lower or 1-percentage-point higher than the current healthcare cost trend rates:

Trend Rate -1% Trend Rate Trend Rate + 1%

6.25%/5.30% 7.25%/6.30% 8.25%/7.30%
Net OPEB Liability (Asset) 31,982,412 $ 39,390,505 $ 48,469,017 $ l. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $1,854,380. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
City Contributions Made Subsequent to
Measurement Date 5,074,731 $ - $
Differences Between Expected and Actual
Experience - (3,959,353)
Changes of Assumptions - (1,054,561)
Net Difference Between Projected and Actual
Earnings on Plan Investments 338,971 -
Total 5,413,702 $ (5,013,914) $

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(69)
NOTE 11 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) m. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
$5,074,731 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of total OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Deferred
Outflows/
(Inflows) of
Year Ending June 30, of Resources
2022 (1,821,948) $
2023 (1,731,948)
2024 (1,059,572)
2025 (61,475)
2026 -
Thereafter -
Total (4,674,943) $
NOTE 12 DEFINED CONTRIBUTION PLAN
Employees hired by the City on a part-time, seasonal or temporary basis whose wages do not qualify for Social Security deductions or membership in a qualified pension plan are required to participate in the Part-Time, Seasonal and Temporary (PST) Employee Retirement Program. The City administers PST, an eligible 457 plan under the Internal Revenue Code. Employees’ mandatory PST contributions amount to 7.5% of gross wages on a pretax basis. Employees are fully vested upon enrollment and are entitled to 100% of the account upon separation from the City. The City does not make any contributions to the PST. The PST assets are held in a trust account for the sole benefit of the employees and their beneficiaries and have been excluded from the City’s reported assets accordingly.

NOTE 13 COMMITMENTS AND CONTINGENCIES
Claims
Various claims for personal injury and for property damage are pending against the City. It is the opinion of the City Attorney that any liability arising out of such claims is adequately covered under insurance agreements.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(70)
NOTE 14 CONDUIT OBLIGATION DEBT
The City issued $2,315,000 of Heritage Springs Assessment District Improvement Bonds on August 9, 2001. These bonds are not included in the accompanying financial statements as neither the faith and credit nor the taxing powers of the City have been pledged to the payment of the obligations. The outstanding balance at June 30, 2021, is $1,325,000.

NOTE 15 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Santa Fe Springs (City) that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. As of February 1, 2012, the City Council, by operation of law, became the Successor Agency to the Community Development Commission for the City of Santa Fe Springs (Successor Agency) in accordance with the Bill.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

Loans and Notes Receivable
The loans and notes receivable balance in the Successor Agency Fund consist of an installment note in the amount of $61,438 relate to an advance of former Commission monies to property owners to clean up hazardous materials on private property. This note bears an interest rate of 9.0% per annum.

Capital Assets
Additions and deletions in the Successor Agency’s capital assets were as follows:

Balance Balance
June 30, 2020 Additions Reductions June 30, 2021
Capital Assets, not Being Depreciated:

Land 415,530 $ - $ - $ 415,530 $
Total Capital Assets,
Not Being Depreciated 415,530 $ - $ - $ 415,530 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(71)
NOTE 15 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
Long-Term Liabilities
The following is a summary of changes in long-term liabilities for the fiscal year ended June 30, 2021:

Balance Balance Due Within
June 30, 2020 Additions Reductions June 30, 2021 One Year Private-Purpose Activities:

Consolidated Redevelopment
Project Tax Allocation Bonds:
2006 Issue 22,420,579 $ - $ 1,794,209 $ 20,626,370 $ 1,853,399 $ Accreted Interest on
Capital Appreciation Bonds 18,580,502 262,609 - 18,843,111 - 2016 Refunding Issue 9,660,000 - 2,785,000 6,875,000 2,670,000 2017 Refunding Issue 9,870,000 - 3,225,000 6,645,000 3,285,000 Issuance Discounts/Premiums (91,870) - 15,312 (76,558) - Direct Borrowings:

Tax Increment Loan from
Los Angeles County 6,600,396 106,656 251,801 6,455,251 - Total 67,039,607 $ 369,265 $ 8,071,322 $ 59,368,174 $ 7,808,399 $ Year Ending June 30, Principal Interest
2022 7,808,399 $ 222,549 $
2023 7,830,198 96,927
2024 6,359,492 24,572
2025 4,998,770 8,381
2026 4,040,748 -
2027-2029 3,108,763 -
Total 34,146,370 352,429 $
Cumulative Accretion Interest
on Capital Appreciation Bonds 18,843,111
Total Principal, June 30, 2021 52,989,481 $
Tax Allocation Bonds
Consolidated Redevelopment Project 2006 Tax Allocation Bonds In December 2006, the former Commission issued serial bonds (Series A) in the amount of $27,658,493. Series A bonds are structured with a mix of current interest bonds and accreted interest on capital appreciation bonds. Serial bonds totaling $4,710,000 are payable annually on each September 1 ranging from $10,000 to $2,195,000 through September 1, 2020. Interest is payable on September 1 and March 1 in each year at rates of

3.75% to 5.0% per annum. Capital appreciation bonds have serial maturities in 2020 through 2028 payable annually on September 1 each year with a value at maturity ranging from $920,000 to $11,805,000. The current interest bonds are optionally callable at par on September 1, 2016. The capital appreciation bonds are non-callable. The serial bonds were fully refunded in fiscal year 2016-17 with the issuance of the 2016 Subordinate Tax Allocation Refunding Bonds.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(72)
NOTE 15 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
Consolidated Redevelopment Project 2006 Tax Allocation Bonds (Continued) In December 2006, the former Commission issued serial bonds (Series B) in the amount of $18,760,000. Series B bonds have current interest term bonds of $5,230,000 and $13,530,000 due September 1, 2011 and September 1, 2018, respectively. The interest rates range from 5.18% to 5.35%. The bonds are optionally callable at par on September 1, 2016. The serial bonds were fully refunded in fiscal year 2016-17 with the issuance of the 2016 Subordinate Tax Allocation Refunding Bonds.

Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of the bonds was transferred to the Successor Agency. Upon dissolution, former tax increment revenues are deposited into the Los Angeles County Redevelopment Property Tax Trust Fund (RPTTF) and are distributed to Successor Agencies based on approved enforceable obligations. The City does not believe the dissolution bill changes the pledged nature of the former tax increment and considers all deposits to the RPTTF pledged for debt service until the full debt service obligation for the fiscal year is reached. Total amount outstanding as of June 30, 2021, is 39,469,481 including $18,843,111 of accreted interest.
2016 Subordinate Tax Allocation Refunding Bonds
In July 2016, the Successor Agency to the Community Development Commission of the City of Santa Fe Springs (the Successor Agency) issued $25,270,000 in 2016 Subordinate Tax Allocation Refunding Bonds to redeem and defease all amounts outstanding under the following five series of bonds issued by the former Community Development Commission of the City of Santa Fe Springs:
 $28,845,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Bonds, 2001 Series A.
 $50,915,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Refunding Bonds, 2002 Series A.
 $6,530,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Taxable Tax Allocation Refunding Bonds, 2003 Series A (Housing Tax Revenues).  $4,710,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Bonds, 2006 Series A, issued as current interest bonds.
 $18,760,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Taxable Tax Allocation Bonds, 2006 Series B.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(73)
NOTE 15 SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY (CONTINUED)
2016 Subordinate Tax Allocation Refunding Bonds (Continued) The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $487,390, of which the outstanding amount at June 30, 2021 is $243,695, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $5,162,328 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $2,254,147. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2017. The certificates mature in 2025 and principal is payable on September 1 each year, commencing September 1, 2017. Total amount outstanding as of June 30, 2021, is $6,875,000.
2017 Subordinate Tax Allocation Refunding Bonds
In December 2017, the Successor Agency to the Community Development Commission of the City of Santa Fe Springs (the Successor Agency) issued $16,215,000 in 2017 Subordinate Tax Allocation Refunding Bonds to redeem and defease all amounts outstanding under the following series of bonds issued by the former Community Development Commission of the City of Santa Fe Springs:
 $43,015,000 original principal amount Community Development Commission of the City of Santa Fe Springs Consolidated Redevelopment Project Tax Allocation Bonds.

The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $146,855, of which the outstanding amount at June 30, 2021 is $29,371, which is reported as a deferred inflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $11,239,389 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $1,262,206. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2018. The certificates mature in 2023 and principal is payable on September 1 each year, commencing September 1, 2018. Total amount outstanding as of June 30, 2021, is $6,645,000.

Tax Increment Loan Payable
A loan of property tax increment was issued by the County of Los Angeles, California, to the former Washington Boulevard Redevelopment Project Debt Service Fund at a variable interest rate equivalent to the Los Angeles County Annual Treasury Pool rate as calculated annually by the County Auditor-Controller. Principal and interest payments on this loan were originally to be deferred until such time as the former Washington Boulevard Project has received a combined total of $10,750,000 in monies from sales tax increment, and property tax increment. Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of the loan was transferred to the Successor Agency. The repayment schedule is not fixed and will be dependent upon the availability of RPTTF to be used for that purpose, subject to the approval of the Oversight Board, Los Angeles County Auditor-Controller, and California Department of Finance. Total amount outstanding as of June 30, 2021, is $6,455,251.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(74)
NOTE 16 RESTATEMENT OF NET POSITION
Custodial
Funds
Net Position at July 1, 2020, as Originally Reported - $ Implementation of GASB 84, Fiduciary Activities ,
which requires the presentation of net position
for Custodial Funds. 759,319
Net Position at July 1, 2020, as Restated 759,319 $
(75)

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF SANTA FE SPRINGS, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Required Supplementary Information. (76)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes 51,994,000 $ 57,074,000 $ 65,422,671 $ 8,348,671 $ Licenses and Permits 1,819,200 1,759,200 2,228,200 469,000 Intergovernmental 876,100 846,100 829,843 (16,257)
Charges for Services 4,791,900 5,210,200 6,445,477 1,235,277 Interest and Rentals 2,195,000 1,880,600 1,185,945 (694,655) Fines and Forfeitures 557,000 543,500 380,754 (162,746) Contributions 291,200 291,100 271,018 (20,082)
Miscellaneous 765,100 765,100 893,949 128,849
Total Revenues 63,289,500 68,369,800 77,657,857 9,288,057

EXPENDITURES
General Government 8,897,300 9,357,600 8,521,162 836,438 Public Safety 32,539,000 33,454,000 32,702,617 751,383
Community Development 2,762,600 2,742,600 2,541,327 201,273 Public Works 11,743,000 12,043,000 11,045,074 997,926
Culture and Leisure 6,504,500 5,424,000 5,002,819 421,181 Human Services 1,833,100 1,718,000 1,418,131 299,869
Capital Outlay 4,939,500 5,092,985 4,312,921 780,064
Debt Service:

Principal Retirement 572,450 572,450 176,868 395,582
Interest and Fiscal Charges 217,100 217,100 21,337 195,763 Total Expenditures 70,008,550 70,621,735 65,742,256 4,879,479

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (2,251,935) (6,719,050) 11,915,601 14,167,536

OTHER FINANCING SOURCES (USES)
Transfers In 3,057,400 2,941,600 3,082,587 140,987
Transfers Out (2,800,000) (7,800,000) (8,031,669) (231,669) Capital Leases 3,296,000 3,296,000 3,306,000 10,000
Sale of Capital Asset 25,000 25,000 33,453 8,453
Total Other Financing
Sources (Uses) 3,578,400 (1,537,400) (1,609,629) (72,229) NET CHANGE IN FUND BALANCE (3,789,335) (3,140,650) 10,305,972 14,095,307 Fund Balance - Beginning of Year 50,042,557 50,042,557 50,042,557 - FUND BALANCE - END OF YEAR $ 46,253,222 46,901,907 $ 60,348,529 $ 14,095,307 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

LOW AND MODERATE INCOME HOUSING ASSETS FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Required Supplementary Information. (77)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Interest and Rentals - $ - $ 206,102 $ 206,102 $
Miscellaneous - - 48,331 (48,331)
Total Revenues - - 254,433 157,771

EXPENDITURES
Community Development 207,500 207,500 216,789 (9,289)
Total Expenditures 207,500 207,500 216,789 (9,289)
NET CHANGE IN FUND BALANCE (207,500) (207,500) 37,644 148,482 Fund Balance - Beginning of Year 12,133,202 12,133,202 12,133,202 - FUND BALANCE - END OF YEAR $ 11,925,702 11,925,702 $ 12,170,846 $ 148,482 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
(78)
Fiscal Year Ended June 30, 2021 June 30, 2020
Measurement Period June 30, 2020 June 30, 2019
Total Pension Liability:

Service Cost $ 1,609,236 1,567,189 $
Interest on Total Pension Liability 12,378,733 12,629,742 Differences Between Expected and
Actual Experience 2,131,720 268,043
Changes in Assumptions - -
Benefit Payments, Including Refunds of
Employee Contributions (10,473,500) (10,975,249)
Net Change in Total Pension Liability 5,646,189 3,489,725 Total Pension Liability - Beginning of Year 181,075,736 175,429,547 Total Pension Liability - End of Year (a) 184,565,461 $ 181,075,736 $ Plan Fiduciary Net Position:

Contributions - Employer $ 5,182,712 5,957,285 $
Contributions - Employee 783,946 855,704
Net Investment Income 6,740,766 5,199,591
Benefit Payments (10,473,500) (10,975,249)
Net Plan to Plan Resource Movement - -
Other Miscellaneous Income (Expense) 242 -
Administrative Expense (73,690) (148,620)
Net Change in Plan Fiduciary Net Position 888,711 2,160,476 Plan Fiduciary Net Position -
Beginning of Year 105,422,326 103,261,850
Plan Fiduciary Net Position -
End of Year (b) $ 105,422,326 106,311,037 $
Net Pension Liability - Ending (a)-(b) $ 75,653,410 78,254,424 $ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 57.60% 58.22%
Covered Payroll $ 8,249,634 9,185,973 $
Net Pension Liability as Percentage of
Covered Payroll 851.89% 917.05%
Notes to Schedule:

Changes in Assumptions:

Fiscal year 2015 was the first year of implementation and therefore only seven years are shown.

There were no changes in benefits.

Benefit Changes:

From fiscal year June 30, 2020 to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

CITY OF SANTA FE SPRINGS, CALIFORNIA

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN FISCAL YEARS*
(79)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:

Service Cost 1,796,886 $ 1,697,844 $ 1,501,984 $ 1,544,341 $ 1,578,729 $ Interest on Total Pension Liability 11,973,513 11,756,269 11,766,386 11,550,084 11,142,267 Differences Between Expected and
Actual Experience (299,522) (3,198,739) (1,620,555) 714,618 - Changes in Assumptions (953,019) 9,199,362 - (2,672,769) - Benefit Payments, Including Refunds of
Employee Contributions (9,808,276) (8,617,142) (8,887,931) (8,362,515) (8,292,893) Net Change in Total Pension Liability 2,709,582 10,837,594 2,759,884 2,773,759 4,428,103 Total Pension Liability - Beginning of Year 172,719,965 161,882,371 159,122,487 156,348,728 151,920,625 Total Pension Liability - End of Year (a) 175,429,547 $ 172,719,965 $ 161,882,371 $ 159,122,487 $ 156,348,728 $ Plan Fiduciary Net Position:

Contributions - Employer $ 4,174,840 4,673,836 $ 3,728,926 $ 3,368,960 $ 2,513,465 $ Contributions - Employee 873,584 957,530 932,924 945,614 1,210,652 Net Investment Income 8,481,211 10,317,843 500,787 2,213,275 14,964,552 Benefit Payments (9,808,276) (8,617,142) (8,887,931) (8,362,515) (8,292,893) Net Plan to Plan Resource Movement (242) - - - -
Other Miscellaneous Income (Expense) (294,413) - - - -
Administrative Expense (155,035) (137,006) (58,860) (108,707) - Net Change in Plan Fiduciary Net Position 3,770,665 6,696,065 (3,784,154) (1,943,373) 10,395,776 Plan Fiduciary Net Position -
Beginning of Year 99,491,185 92,795,120 96,579,274 98,522,647 88,126,871 Plan Fiduciary Net Position -
End of Year (b) 103,261,850 $ 99,491,185 $ 92,795,120 $ 96,579,274 $ 98,522,647 $ Net Pension Liability - Ending (a)-(b) 72,167,697 $ 73,228,780 $ 69,087,251 $ 62,543,213 $ 57,826,081 $ Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 58.86% 57.60% 57.32% 60.69% 63.01% Covered Payroll 8,771,632 $ 9,696,909 $ 9,040,284 $ 9,086,236 $ 8,979,508 $ Net Pension Liability as Percentage of
Covered Payroll 822.74% 755.18% 764.22% 688.33% 643.98% Notes to Schedule:

Changes in Assumptions:

Fiscal year 2015 was the first year of implementation and therefore only seven years are shown.

There were no 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 changes in assumptions.

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

Benefit Changes:

There were no changes in benefits.

CITY OF SANTA FE SPRINGS, CALIFORNIA

MISCELLANEOUS PLAN

SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
(80)
Fiscal Year Ended June 30, 2021 June 30, 2020
Contractually Required Contribution
(Actuarially Determined) $ 5,952,729 6,557,278 $
Contributions in Relation to
the Actuarially Determined
Contributions (5,952,729) (6,557,278)
Contribution Deficiency (Excess) $ - - $
Covered Payroll $ 9,185,973 9,998,155 $
Contributions as a Percentage
of Covered Payroll 65.58% 64.80%
Notes to Schedule:

Valuation Date 6/30/2018 6/30/2017
Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age
Amortization Method (1) (1)
Asset Valuation Method Fair Value Fair Value
Inflation 2.500% 2.625%
Salary Increases (2) (2)
Investment Rate of Return 7.00% (3) 7.25% (3)
Retirement Age (4) (4)
Mortality (5) (5)
(1) Level percentage of payroll, closed.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 2.7% at 55, 2% at 55 and 2% at 62
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF SANTA FE SPRINGS, CALIFORNIA

MISCELLANEOUS PLAN

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
LAST TEN FISCAL YEARS*
(81)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually Required Contribution
(Actuarially Determined) $ 4,669,275 5,182,369 $ 4,174,840 $ 3,728,926 $ 3,554,823 $ Contributions in Relation to
the Actuarially Determined
Contributions (4,669,275) (5,182,369) (4,174,840) (3,728,926) (3,554,823) Contribution Deficiency (Excess) $ - - $ - $ - $ - $
Covered Payroll $ 8,771,632 8,249,634 $ 9,696,909 $ 9,040,284 $ 9,086,236 $ Contributions as a Percentage
of Covered Payroll 62.82% 53.23% 43.05% 41.25% 39.12%
Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods 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 15-Year Smoothed
Market Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (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) 2.7% at 55, 2% at 55 and 2% at 62
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study

CITY OF SANTA FE SPRINGS, CALIFORNIA

COST SHARING SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN FISCAL YEARS*
(82)
Fiscal Year Ended June 30, 2021 June 30, 2020
Measurement Period June 30, 2020 June 30, 2019
Plan’s Proportion of the
Net Pension Liability 0.82961% 0.81779%
Plan’s Proportionate Share
of the Net Pension Liability $ 51,050,543 55,271,784 $
Plan’s Covered Payroll $ 6,607,330 6,934,844 $
Plan’s Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 797.02% 772.63%
Plan’s Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plan’s Total 68.36% 75.26%
Pension Liability
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no significant changes in assumptions.

CITY OF SANTA FE SPRINGS, CALIFORNIA

COST SHARING SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED) LAST TEN FISCAL YEARS*
(83)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan’s Proportion of the
Net Pension Liability 0.80993% 0.78353% 0.79447% 0.77891% 0.70334% Plan’s Proportionate Share
of the Net Pension Liability $ 46,817,505 47,522,971 $ 41,147,225 $ 32,094,633 $ 26,382,020 $ Plan’s Covered Payroll $ 6,971,540 6,994,713 $ 6,843,585 $ 6,502,095 $ 6,188,907 $ Plan’s Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 679.41% 671.55% 601.25% 493.60% 426.28% Plan’s Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plan’s Total 75.26% 73.31% 74.06% 78.40% 79.82% Pension Liability
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown.

From fiscal year June 30, 2015 to June 30, 2016:

There were no changes in assumptions.

From fiscal year June 30, 2016 to June 30, 2017:

There were no 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:

CITY OF SANTA FE SPRINGS, CALIFORNIA

COST SHARING SAFETY PLAN

SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
(84)
Fiscal Year Ended June 30, 2021 June 30, 2020
Contractually Required Contribution
(Actuarially Determined) $ 4,372,591 4,786,061 $
Contributions in Relation to
the Actuarially Determined
Contributions (4,372,591) (4,786,061)
Contribution Deficiency (Excess) $ - - $
Covered Payroll $ 6,934,844 6,644,007 $
Contributions as a Percentage
of Covered Payroll 72.04% 63.05%
Notes to Schedule:

Valuation Date 6/30/2018 6/30/2017
Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age
Amortization Method (1) (1)
Asset Valuation Method Fair Value Fair Value
Inflation 2.500% 2.625%
Salary Increases (2) (2)
Investment Rate of Return 7.00% (3) 7.25% (3)
Retirement Age (4) (4)
Mortality (5) (5)
(1) Level percentage of payroll, closed.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 3% at 50, 3% at 55 and 2.7% at 57.
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.

CITY OF SANTA FE SPRINGS, CALIFORNIA

COST SHARING SAFETY PLAN

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
LAST TEN FISCAL YEARS*
(85)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually Required Contribution
(Actuarially Determined) $ 3,247,068 3,701,766 $ 2,887,172 $ 1,166,499 $ 1,892,765 $ Contributions in Relation to
the Actuarially Determined
Contributions (3,247,068) (3,701,766) (2,887,172) (1,166,499) (1,892,765) Contribution Deficiency (Excess) $ - - $ - $ - $ - $
Covered Payroll 6,607,330 $ 6,994,713 $ 6,971,540 $ 6,843,585 $ 6,502,095 $ Contributions as a Percentage
of Covered Payroll 56.03% 46.42% 41.41% 17.05% 29.11%
Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods 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 15-Year Smoothed
Market Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (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) 3% at 50, 3% at 55 and 2.7% at 57.
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study

CITY OF SANTA FE SPRINGS, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
(86)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability:

Service Cost 966,145 $ 1,105,368 $ 1,073,173 $ 1,042,000 $ Interest on Total OPEB Liability 4,051,589 4,408,354 4,254,334 4,100,000 Changes of Benefit Terms - (24,586) - -
Differences Between Expected and Actual Experience (7,005,009) - - - Changes of Assumptions (1,048,245) (397,546) - -
Benefit Payments (3,301,649) (3,163,861) (2,992,000) (2,786,000) Net Change in Total OPEB Liability 667,840 (5,077,280) 2,335,507 2,356,000 Total OPEB Liability - Beginning of Year 60,708,227 65,785,507 63,450,000 61,094,000 Total OPEB Liability - End of Year (a) 61,376,067 $ 60,708,227 $ 65,785,507 $ 63,450,000 $ Plan Fiduciary Net Position:

Contributions - Employer 5,033,207 $ 4,995,349 $ 4,616,000 $ 5,223,000 $ Net Investment Income 793,628 1,101,136 1,119,324 1,216,000 Benefit Payments (3,301,649) (3,163,861) (2,992,000) (2,786,000) Administrative Expenses (17,396) (10,164) (26,012) (6,000) Net Change in Plan Fiduciary Net Position 2,507,790 2,922,460 2,717,312 3,647,000 Plan Fiduciary Net Position - Beginning of Year 19,477,772 16,555,312 13,838,000 10,191,000 Plan Fiduciary Net Position - End of Year (b) 21,985,562 $ 19,477,772 $ 16,555,312 $ 13,838,000 $ Net OPEB Liability - Ending (a)-(b) 39,390,505 $ 41,230,455 $ 49,230,195 $ 49,612,000 $ Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 35.82% 32.08% 25.17% 21.81% Covered - Employee Payroll 18,008,437 $ 17,127,695 $ 19,257,018 $ 18,626,195 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 218.73% 240.72% 255.65% 266.36% Notes to Schedule:

Changes in Assumptions:
* Fiscal year 2018 was the first year of implementation and therefore only four years are shown.

Benefit Changes:

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in benefits.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in benefits.

From fiscal year June 30, 2020 to June 30, 2021:

Removal of ACA Excise Tax.

From fiscal year June 30, 2019 to June 30, 2020:

Life insurance benefit for grandfathered retirees was terminated. changed from 7.50% non-medicare and 6.50% medicare to 7.25% non-medicare and 6.30% medicare.

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

The mortality improvement scale was updated from Scale MP-2017 to MP-2019 and the healthcare trend

CITY OF SANTA FE SPRINGS, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS — OPEB
LAST TEN FISCAL YEARS*
(87)
Fiscal Year Ended June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially Determined Contribution 4,141,000 $ 5,047,000 $ 4,900,000 $ 4,737,000 $ Contributions in Relation to the
Actuarially Determined Contributions (5,074,731) (5,033,207) (4,995,349) (4,616,000) Contribution Deficiency (Excess) (933,731) $ 13,793 $ (95,349) $ 121,000 $ Covered - Employee Payroll 19,983,477 $ 18,008,437 $ 17,127,695 $ 19,257,018 $ Contributions as a Percentage of
Covered - Employee Payroll 20.72% 28.03% 28.61% 24.60%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2017 6/30/2017 6/30/2017
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)
Amortization Period 23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
Asset Valuation Method (2) (2) (2) (2)
Discount Rate 6.75% 6.75% 6.75% 7.25%
Inflation 2.75% 2.75% 2.75% 2.75%
Healthcare Trend Rates (4) (4) (4) (3)
Mortality (6) (6) (6) (5)
(1) Level percentage of payroll.
(2) Investment gains/losses spread over 5-year rolling period. (6) CalPERS 1997-2015 experience study.
* Fiscal year 2018 was the first year of implementation and therefore only three years are shown. (3) Non-Medicare 7.5%, decreasing to an ultimate rate of 4% in 2076.

Medicare - 6.5%, decreasing to an ultimate rate of 4% in 2076. (4) Non-Medicare 7.25%, decreasing to an ultimate rate of 4% in 2076.

Medicare - 6.3%, decreasing to an ultimate rate of 4% in 2076. (5) CalPERS 1997-2011 experience study.

CITY OF SANTA FE SPRINGS, CALIFORNIA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
(88)
Budgetary Comparison Information
Summary of Budgetary Policies
The budget is prepared by the City Manager in accordance with City Code Section 31.13 and is legally adopted by the City Council. The budget includes activities for the General Fund.

Budgets for capital projects funds are not presented because they are budgeted on a project life basis.

Revisions to the originally adopted budget were made during the year and have been incorporated into the budgetary amounts presented within the financial statements.

The basis for budgeting in the General Fund and Special Revenue Funds is substantially consistent with generally accepted accounting principles, except that payments made on financing leases are recorded as functional expenditures. The lease agreements are not budgeted as a financing source and the acquisition price of the acquired asset is not budgeted as an expenditure.

The legal level of control is considered to be at the fund level since management can reassign resources within a fund without special approval from City Council.

The budget is formally integrated into the accounting system and employed as a management control tool during the year. At fiscal year-end, unexpended appropriations lapse, with the exception of capital improvements. All appropriations for capital improvements are carried forward until such time as the project is completed or terminated by action of the City Council.

The following funds do not have a legally adopted budget:
 Heritage Springs Street Maintenance District
 Business License Surcharge
 Fire Grants
 Community Development Block Grant Program Income Fund  Narcotics Forfeitures/Seizures
 Transportation Center Expansion Parking Lot Fund
 State Coronavirus Relief Fund
 Heritage Art Education Endowment Fund

CITY OF SANTA FE SPRINGS, CALIFORNIA

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS
(89)
Nonmajor governmental funds reported in the governmental fund financial statements include the following:

SPECIAL REVENUE FUNDS
State Gas Tax
This fund is used to account for gasoline taxes received under Sections 2105, 2106, 2107 and 2107.5 of the Street and Highways Code. These funds are utilized solely for street related purposes such as new construction, rehabilitation, or maintenance.

County Transit Tax
This fund is used to account for the City’s share of an additional one-half percent sales tax, which was approved by the electorate in November 1980, restricted to financing transportation projects. This fund is also used to account for the City’s share of an additional one-half percent sales tax, which was approved by the electorate in November 1990, restricted to financing transit projects within the City.

Street Lighting Maintenance District
This fund is used to account for revenues received and costs incurred for street lighting services in selected areas within the City. Funds are derived from property-related assessments collected by the County. Financing for the district is provided by assessing areas of benefit under the 1972 Lighting and Maintenance District Art.

Heritage Springs Street Maintenance District
This fund is used to account for revenues received and costs incurred for street maintenance and repair services in selected areas within the City. Funds are derived from property-related assessments collected by the County. Financing for the district is provided by assessing areas of benefit under the 1913 Municipal Improvement Act.

Art in Public Places
This fund is used to account for Heritage Artwork Program fees imposed upon new development at 1% of the building permit valuation for the purpose of increasing public art and providing art educational programs.

Business License Surcharge
This fund is used to account for state mandated $1 surcharge applied to all business licenses issued in the City. Under SB 1186 the revenue is restricted for Certified Access Specialists (CASp) programs, assisting businesses to become American with Disabilities Act (ADA) compliant and developing tools to help educate the businesses community on expanding ADA access.

Air Quality Improvement
This fund is used to account for additional motor vehicle registration fees imposed by the South Coast Air Quality Management District to finance the implementation of mobile source emission reduction programs and the provisions of the California Clean Air Act.

CITY OF SANTA FE SPRINGS, CALIFORNIA

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
(90)
Community Development Block Grant
This fund is used to account for expenditures funded by the Community Development Block Grant Program authorized by Title I of the Housing and Community Development Act of 1974 for the purpose of developing viable urban communities, including decent housing and suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.

Fire Grants
This fund is used to account for various federal and state grants administered by the Department of Fire-Rescue which provide funding for labor, operating, and capital expenditures.

Public Safety Augmentation
This fund is used to account for the City’s share of the one-half percent sales tax, which was approved by the electorate in November of 1993. The proceeds are earmarked exclusively for public safety purposes.

Supplemental Law Enforcement Services
This fund is used to account for a State of California block grant providing for community oriented policing programs. The funds are to be spent on new programs supporting “front-line” law enforcement activities.

Community Development Block Grant Program Income
This fund is used to account for the receipt of repayments received by the City from loans funded by the Community Development Block Grant program. These funds may be retained by the City but must be expended under the Community Development Block Grant program.

Narcotics Forfeitures/Seizures
This fund is used to account for assets received for direct local law enforcement participation in investigations or prosecutions resulting in a forfeiture.

Transportation Center Expansion Parking Lot Fund
This fund is used to account for lease income from City of Norwalk for the vacant parcel at the Transportation Center that is being developed. The fund is being earmarked for transportation purposes.

State Coronavirus Relief Fund
This fund is used to account for expenditures funded by the State Coronavirus Relief Fund.

Measure W
This fund is used to account for stormwater activities.

PERMANENT FUND
Heritage Art Education Endowment Fund
This fund is used to account for an endowment held by the City to be used for the purpose of providing art education programs.
(91)
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CITY OF SANTA FE SPRINGS, CALIFORNIA
COMBINING BALANCE SHEET —

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(92)
Heritage
Street Springs
County Lighting Street Art in
State Transit Maintenance Maintenance Public
Gas Tax Tax District District Places
ASSETS
Pooled Cash and Investments 238,720 $ 2,842,115 $ 184,453 $ 183,007 $ 1,170,233 $ Receivables:

Notes and Loans - - - - -
Due from Other Governments 109,323 5,767 5,091 - -
Due from other Funds - 7,425 - - -
Total Assets 348,043 $ 2,855,307 $ 189,544 $ 183,007 $ 1,170,233 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable - $ - $ - $ - $ - $
Accrued Liabilities - - - - -
Due to Other Funds 66,971 - - - -
Total Liabilities 66,971 - - - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - - -
Total Deferred Inflows
of Resources - - - - -

FUND BALANCES
Nonspendable:

Permanent Fund Principal - - - - -
Restricted for:

Community Development Projects - - - - -
Public Safety - - - - -
Public Works 281,072 2,855,307 189,544 183,007 -
Art in Public Places - - - - 1,170,233
Unassigned - - - - -
Total Fund Balances 281,072 2,855,307 189,544 183,007 1,170,233 Total Liabilities and
Fund Balances 348,043 $ 2,855,307 $ 189,544 $ 183,007 $ 1,170,233 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED) —

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(93)
ASSETS
Pooled Cash and Investments
Receivables:

Notes and Loans
Due from Other Governments
Due from other Funds
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Total Deferred Inflows
of Resources

FUND BALANCES
Nonspendable:

Permanent Fund Principal
Restricted for:

Community Development Projects
Public Safety
Public Works
Art in Public Places
Unassigned
Total Fund Balances
Total Liabilities and
Fund Balances
Community
Business Air Development Public
License Quality Block Fire Safety
Surcharge Improvement Grant Grants Augmentation
$ 191,153 62,954 $ - $ - $ - $
- - - - -
12,200 - 94,318 474,897 38,651
- - - - -
$ 203,353 62,954 $ 94,318 $ 474,897 $ 38,651 $
$ - 797 $ - $ 18,889 $ - $
- - 1,547 - -
- - 92,771 477,790 38,651
- 797 94,318 496,679 38,651
- - - 219,895 -
- - - 219,895 -
- - - - -
- 62,157 - - -
- - - - -
203,353 - - - -
- - - - -
- - - (241,677) -
203,353 62,157 - (241,677) -
$ 203,353 62,954 $ 94,318 $ 474,897 $ 38,651 $
Special Revenue Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED) —

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(94)
ASSETS
Pooled Cash and Investments
Receivables:

Notes and Loans
Due from Other Governments
Due from other Funds
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Total Deferred Inflows
of Resources

FUND BALANCES
Nonspendable:

Permanent Fund Principal
Restricted for:

Community Development Projects
Public Safety
Public Works
Art in Public Places
Unassigned
Total Fund Balances
Total Liabilities and
Fund Balances
Community Transportation
Supplemental Development Center
Law Block Grant Narcotics Expansion State
Enforcement Program Forfeitures/ Parking Coronavirus
Services Income Seizures Lot Fund Relief Fund
$ - 1,696 $ 48,482 $ 41,001 $ - $
19,250 - - - -
- 61,285 - - -
- - - - -
$ 19,250 62,981 $ 48,482 $ 41,001 $ - $
$ - - $ - $ - $ - $
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
19,250 - - - -
- 62,981 48,482 - -
- - - 41,001 -
- - - - -
- - - - -
19,250 62,981 48,482 41,001 -
$ 19,250 62,981 $ 48,482 $ 41,001 $ - $
Special Revenue Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA
COMBINING BALANCE SHEET (CONTINUED) —

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(95)
ASSETS
Pooled Cash and Investments
Receivables:

Notes and Loans
Due from Other Governments
Due from other Funds
Total Assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts Payable
Accrued Liabilities
Due to Other Funds
Total Liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
Total Deferred Inflows
of Resources

FUND BALANCES
Nonspendable:

Permanent Fund Principal
Restricted for:

Community Development Projects
Public Safety
Public Works
Art in Public Places
Unassigned
Total Fund Balances
Total Liabilities and
Fund Balances
Special Permanent
Revenue Fund Fund
Heritage
Art Total
Education Nonmajor
Endowment Governmental
Measure W Fund Funds
$ 459,411 - $ 5,423,225 $
- - 19,250
- 1,430,662 2,232,194
- - 7,425
$ 459,411 1,430,662 $ 7,682,094 $
$ - - $ 19,686 $
- - 1,547
- - 676,183
- - 697,416
- - 219,895
- - 219,895
244,676 - 244,676
- - 81,407
- - 111,463
- 1,430,662 5,183,946
214,735 - 1,384,968
- - (241,677)
459,411 1,430,662 6,764,783
$ 459,411 1,430,662 $ 7,682,094 $

CITY OF SANTA FE SPRINGS, CALIFORNIA

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

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(96)
Heritage
Street Springs
County Lighting Street Art in
State Transit Maintenance Maintenance Public
Gas Tax Tax District District Places

REVENUES
Taxes - $ - $ - $ - $ - $
Intergovernmental 750,881 1,160,387 196,511 - -
Interest and Rentals 3,134 43,943 2,191 - 17,163
Contributions - - - - 352,551
Miscellaneous - 5,767 - - -
Total Revenues 754,015 1,210,097 198,702 - 369,714

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - - - -
Culture and Leisure - - - - -
Total Expenditures - - - - -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,210,097 754,015 198,702 - 369,714

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out (513,845) (1,196,531) (183,000) - (319,917) Sale of Capital Assets - 7,425 - - -
Total Other Financing
Sources (Uses) (513,845) (1,189,106) (183,000) - (319,917) NET CHANGE IN FUND BALANCES 20,991 240,170 15,702 - 49,797 Fund Balances - Beginning of Year 40,902 2,834,316 173,842 183,007 1,120,436 FUND BALANCES - END OF YEAR $ 2,855,307 281,072 $ 189,544 $ 183,007 $ 1,170,233 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) —

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(97)

REVENUES
Taxes
Intergovernmental
Interest and Rentals
Contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Culture and Leisure
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Sale of Capital Assets
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year

FUND BALANCES - END OF YEAR
Community
Business Air Development Public
License Quality Block Fire Safety
Surcharge Improvement Grant Grants Augmentation
$ - 17,372 $ - $ - $ 207,013 $
- - 105,445 215,307 -
2,595 - - - -
- - - - -
23,889 - - - -
26,484 17,372 105,445 215,307 207,013
- 487 - - -
- - - 459,876 -
- - 26,753 - -
- 487 26,753 459,876 -
26,484 16,885 78,692 (244,569) 207,013
- - - 231,669 -
- - (78,692) - (207,013)
- - - - -
- - (78,692) 231,669 (207,013)
26,484 16,885 - (12,900) -
176,869 45,272 - (228,777) -
$ 203,353 62,157 $ - $ (241,677) $ - $
Special Revenue Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) —

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(98)

REVENUES
Taxes
Intergovernmental
Interest and Rentals
Contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Culture and Leisure
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Sale of Capital Assets
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year

FUND BALANCES - END OF YEAR
Community Transportation
Supplemental Development Center
Law Block Grant Narcotics Expansion State
Enforcement Program Forfeitures/ Parking Coronavirus
Services Income Seizures Lot Fund Relief Fund
$ - - $ - $ - $ - $
- 161,284 1,604 - 225,891
- 1,695 673 3,001 -
- - - - -
- - - - -
- 162,979 2,277 3,001 225,891
- - - - -
- - - - -
- - - - -
- - - - -
- 162,979 2,277 3,001 225,891
- - - - -
- (203,020) - - (225,891)
- - - - -
- (203,020) - - (225,891)
- (40,041) 2,277 3,001 -
19,250 103,022 46,205 38,000 -
$ 19,250 62,981 $ 48,482 $ 41,001 $ - $
Special Revenue Funds

CITY OF SANTA FE SPRINGS, CALIFORNIA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) —

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(99)

REVENUES
Taxes
Intergovernmental
Interest and Rentals
Contributions
Miscellaneous
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Culture and Leisure
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Sale of Capital Assets
Total Other Financing
Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances - Beginning of Year

FUND BALANCES - END OF YEAR
Special Permanent
Revenue Fund Fund
Heritage
Art Total
Education Nonmajor
Endowment Governmental
Measure W Fund Funds
$ - - $ 224,385 $
- 1,430,662 4,247,972
6,554 - 80,949
- - 352,551
- - 29,656
6,554 1,430,662 4,935,513
- - 487
- - 459,876
- - 26,753
- - 487,116
6,554 1,430,662 4,448,397
- - 231,669
- - (2,927,909)
- - 7,425
- - (2,688,815)
6,554 1,430,662 1,759,582
452,857 - 5,005,201
$ 459,411 1,430,662 $ 6,764,783 $

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

STATE GAS TAX
YEAR ENDED JUNE 30, 2021
(100)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 804,700 $ 804,700 $ 750,881 $ (53,819) $ Interest and Rentals - - 3,134 3,134
Total Revenues 804,700 804,700 754,015 (50,685)

OTHER FINANCING SOURCES (USES)
Transfers Out (200,000) (200,000) (513,845) (313,845)
Total Other Financing
Sources (Uses) (200,000) (200,000) (513,845) (313,845)
NET CHANGE IN FUND BALANCE 604,700 604,700 240,170 (364,530) Fund Balance - Beginning of Year 40,902 40,902 40,902 - FUND BALANCE - END OF YEAR $ 645,602 645,602 $ 281,072 $ (364,530) $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

COUNTY TRANSIT TAX
YEAR ENDED JUNE 30, 2021
(101)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 1,050,000 $ 1,050,000 $ 1,160,387 $ 110,387 $ Interest and Rentals - - 43,943 43,943
Miscellaneous - - 5,767 5,767
Total Revenues 1,050,000 1,050,000 1,210,097 160,097

OTHER FINANCING SOURCES (USES)
Transfers Out (597,100) (597,100) (1,196,531) (599,431) Sale of Capital Assets - - 7,425 7,425
Total Other Financing
Sources (Uses) (597,100) (597,100) (1,189,106) (592,006) NET CHANGE IN FUND BALANCE 452,900 452,900 20,991 (431,909) Fund Balance - Beginning of Year 2,834,316 2,834,316 2,834,316 - FUND BALANCE - END OF YEAR $ 3,287,216 3,287,216 $ 2,855,307 $ (431,909) $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

STREET LIGHTING MAINTENANCE DISTRICT
YEAR ENDED JUNE 30, 2021
(102)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 195,000 $ 195,000 $ 196,511 $ 1,511 $ Interest and Rentals - - 2,191 2,191
Total Revenues 195,000 195,000 198,702 3,702

OTHER FINANCING SOURCES (USES)
Transfers Out (183,000) (183,000) (183,000) -
Total Other Financing
Sources (Uses) (183,000) (183,000) (183,000) -
NET CHANGE IN FUND BALANCE 12,000 12,000 15,702 3,702
Fund Balance - Beginning of Year 173,842 173,842 173,842 - FUND BALANCE - END OF YEAR $ 185,842 185,842 $ 189,544 $ 3,702 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2021
(103)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Interest and Rentals - $ - $ 17,163 $ 17,163 $
Contributions 200,000 200,000 352,551 152,551
Total Revenues 200,000 200,000 369,714 169,714

OTHER FINANCING SOURCES (USES)
Transfers Out (539,500) (398,500) (319,917) 78,583
Total Other Financing
Sources (Uses) (539,500) (398,500) (319,917) 78,583
NET CHANGE IN FUND BALANCE (198,500) (339,500) 49,797 248,297 Fund Balance - Beginning of Year 1,120,436 1,120,436 1,120,436 - FUND BALANCE - END OF YEAR $ 921,936 780,936 $ 1,170,233 $ 248,297 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2021
(104)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Interest and Rentals - $ - $ 2,595 $ 2,595 $
Miscellaneous 17,500 17,500 23,889 6,389
Total Revenues 17,500 17,500 26,484 8,984
Fund Balance - Beginning of Year 176,869 176,869 176,869 - FUND BALANCE - END OF YEAR $ 194,369 194,369 $ 203,353 $ 8,984 $ Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2021
(105)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 16,500 $ 16,500 $ 105,445 $ 88,945 $
Total Revenues 16,500 16,500 105,445 88,945

EXPENDITURES
Culture and Leisure 16,500 16,500 26,753 (10,253)
Total Expenditures 16,500 16,500 26,753 (10,253)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - 78,692 78,692

OTHER FINANCING SOURCES (USES)
Transfers Out - - (78,692) (78,692)
Total Other Financing
Sources (Uses) - - (78,692) (78,692)

NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - - $ - $ - $
Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

PUBLIC SAFETY AUGMENTATION
YEAR ENDED JUNE 30, 2021
(106)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes 186,500 $ 186,500 $ 207,013 $ 20,513 $
Total Revenues 186,500 186,500 207,013 20,513

OTHER FINANCING SOURCES (USES)
Transfers Out (186,500) (186,500) (207,013) (20,513)
Total Other Financing
Sources (Uses) (186,500) (186,500) (207,013) (20,513)

NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - - $ - $ - $
Budgeted Amounts

CITY OF SANTA FE SPRINGS, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE —

SUPPLEMENTAL LAW ENFORCEMENT SERVICES
YEAR ENDED JUNE 30, 2021
(107)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 150,000 $ 150,000 $ 161,284 $ 11,284 $ Interest and Rentals - - 1,695 1,695
Total Revenues 150,000 150,000 162,979 12,979

OTHER FINANCING SOURCES (USES)
Transfers Out (100,000) (100,000) (203,020) (103,020)
Total Other Financing
Sources (Uses) (100,000) (100,000) (203,020) (103,020)
NET CHANGE IN FUND BALANCE 50,000 50,000 (40,041) (90,041) Fund Balance - Beginning of Year 103,022 103,022 103,022 - FUND BALANCE - END OF YEAR $ 153,022 153,022 $ 62,981 $ (90,041) $ Budgeted Amounts
(108)
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CITY OF SANTA FE SPRINGS, CALIFORNIA

DESCRIPTION OF FIDUCIARY FUNDS
(109)
Fiduciary funds are used to account for resources held for the benefits of parties outside the government. The resources of fiduciary funds are not available to support the City’s programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

CUSTODIAL FUNDS
Assessment District Funds
This fund is used to account for special assessments received by the City as agent for payment of special assessment district bonds.

Community Facilities Assessment Districts Fund
This fund is used to account for special assessments received by the City as agent for payment of community facilities district debt and expenses.

CITY OF SANTA FE SPRINGS, CALIFORNIA
COMBINING STATEMENT OF FIDUCIARY NET POSITION—

CUSTODIAL FUNDS
JUNE 30, 2021
(110)
Community
Facilities
Assessment Assessment
Districts Districts Total
ASSETS
Pooled Cash and Investments 566,358 $ 68,478 $ 634,836 $ Restricted Assets:

Cash and Investment with Fiscal Agents 170,030 - 170,030 Total Assets 736,388 68,478 804,866

LIABILITIES
Deposits Payable - 826 826
Total Liabilities - 826 826

NET POSITION
Held for Bondholders 736,388 67,652 804,040
Total Net Position 736,388 $ 67,652 $ 804,040 $

CITY OF SANTA FE SPRINGS, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION—

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
(111)
Community
Facilities
Assessment Assessment
Districts Districts Total

ADDITIONS
Special Assessments or Special Taxes
Collected From Property Owners 209,810 $ - $ 209,810 $
Interest and Change in Fair Value
of Investments 11 - 11
Total Additions 209,821 - 209,821

DEDUCTIONS
Payment for Special Assessment or
Special Tax Debt 165,100 - 165,100
Total Deductions 165,100 - 165,100
CHANGE IN NET POSITION - 44,721 44,721
Net Position - Beginning of Year, as Restated 691,667 67,652 759,319 NET POSITION - END OF YEAR $ 67,652 736,388 $ 804,040 $ (112)
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CITY OF SANTA FE SPRINGS, CALIFORNIA

STATISTICAL SECTION
(113)
This part of the City of Santa Fe Springs comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about the government’s overall financial health.

Page
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. 114 Revenue Capacity – These schedules contain information to help the reader asses the City’s most significant local revenue source, the property tax. 124 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 128
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. 136
Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the Services the City provides and the activities it performs. 139

CITY OF SANTA FE SPRINGS, CALIFORNIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(114)
2012 2013 2014 2015 2016
Governmental Activities:

Net Investment in Capital Assets $ 159,461,487 141,935,739 $ 163,745,920 $ 163,742,164 $ 159,942,690 $ Restricted 9,905,210 9,077,534 9,651,144 29,208,112 32,373,440 Unrestricted 27,007,854 24,344,782 37,672,916 (50,143,910) (49,235,190) Total Governmental Activities Net Position $ 196,374,551 175,358,055 $ 211,069,980 $ 142,806,366 $ 143,080,940 $ Business-Type Activities:

Net Investment in Capital Assets $ 15,742,624 12,353,517 $ 16,386,459 $ 15,541,573 $ 17,182,873 $ Restricted - - - - -
Unrestricted 3,375,412 1,060,256 3,952,242 (2,072,299) (728,889) Total Business Type Activities Net Position $ 19,118,036 13,413,773 $ 20,338,701 $ 13,469,274 $ 16,453,984 $ Primary Government:

Net Investment in Capital Assets $ 175,204,111 154,289,256 $ 180,132,379 $ 179,283,737 $ 177,125,563 $ Restricted 9,905,210 9,077,534 9,651,144 29,208,112 32,373,440 Unrestricted 30,383,266 25,405,038 41,625,158 (52,216,209) (49,964,079) Total Primary Government Net Position $ 215,492,587 188,771,828 $ 231,408,681 $ 156,275,640 $ 159,534,924 $ Source: City of Santa Fe Springs Finance and Administrative Services Dep Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(115)
2017 2018 2019 2020 2021
$ 156,001,364 158,121,201 $ 154,315,020 $ 162,029,958 $ 163,096,596 $ 32,820,873 33,145,221 34,775,125 30,978,812 30,905,794
(90,543,090) (52,203,681) (89,116,900) (75,019,083) (58,624,975) $ 98,279,147 139,062,741 $ 99,973,245 $ 117,989,687 $ 135,377,415 $ $ 18,890,862 17,533,898 $ 18,754,383 $ 18,028,340 $ 19,154,855 $ 536,194 817,087 558,184 559,019 -
(1,190,788) 331,570 (324,355) 526,956 218,253
$ 18,236,268 18,682,555 $ 18,988,212 $ 19,114,315 $ 19,373,108 $ $ 174,892,226 175,655,099 $ 173,069,403 $ 180,058,298 $ 182,251,451 $ 33,357,067 33,962,308 35,333,309 31,537,831 30,905,794
(91,733,878) (51,872,111) (89,441,255) (74,492,127) (58,406,722) $ 116,515,415 157,745,296 $ 118,961,457 $ 137,104,002 $ 154,750,523 $ Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(116)
2012 2013 2014 2015 2016
Expenses:

Governmental Activities:

General Government $ 5,773,716 3,883,766 $ 5,941,165 $ 5,614,730 $ 5,692,938 $ Public Safety 28,371,664 27,242,545 25,903,765 28,215,907 31,438,552 Community Development 3,420,343 13,832,431 4,050,792 3,794,506 4,020,001 Public Works 22,545,319 8,874,948 16,997,746 14,269,841 9,510,398 Culture and Leisure 7,916,483 8,480,678 7,690,481 7,681,363 8,103,268 Human Services 2,664,800 2,929,811 2,881,556 3,133,900 3,326,615 Unallocated Depreciation 64,246 17,182,873 - - -
Interest on Long-Term Liabilities 343,881 (728,889) 213,286 239,719 207,917 Total Governmental Activities
Expenses 71,100,452 81,698,163 63,678,791 62,949,966 62,299,689 Business Type Activities:

Water Utility 9,738,082 10,028,948 10,781,780 10,911,725 10,056,785 Total Primary Government
Expenses $ 80,838,534 91,727,111 $ 74,460,571 $ 73,861,691 $ 72,356,474 $ Program Revenues:

Governmental Activities:

Charges for Services:

General Government $ 746,832 717,021 $ 2,027,076 $ 1,975,162 $ 2,067,142 $ Public Safety 2,792,442 2,801,311 2,937,252 2,985,378 3,485,203 Community Development 4,018,338 3,137,047 2,460,571 1,953,691 2,558,688 Public Works 260,835 336,955 756,730 753,510 824,258
Culture and Leisure 636,462 443,425 556,566 533,242 516,907 Human Services 579,073 641,003 522,881 520,428 450,564
Operating Grants and Contributions 4,714,266 6,100,535 3,405,177 2,090,135 2,414,716 Capital Grants and Contributions 36,562,363 6,016,364 18,887,861 6,801,309 596,380 Total Governmental Activities
Program Revenues 50,310,611 20,193,661 31,554,114 17,612,855 12,913,858 Business Type Activities:

Charges for Services:

Water Utility 13,063,973 11,748,391 13,139,026 12,252,452 11,445,171 Capital Grants and Contributions 4,002,420 914,585 632,638 111,777 796,442 Total Business Type Activities
Program Revenues 17,066,393 12,662,976 13,771,664 12,364,229 12,241,613 Total Primary Government
Program Revenues 67,377,004 32,856,637 45,325,778 29,977,084 25,155,471 Net Revenues (Expenses):

Governmental Activities (20,789,841) (61,504,502) (32,124,677) (45,337,111) (49,385,831) Business Type Activities 7,328,311 2,634,028 2,989,884 1,452,504 2,184,828 Total Net Revenues (Expenses) $ (13,461,530) (58,870,474) $ (29,134,793) $ (43,884,607) $ (47,201,003) $ Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(117)
2017 2018 2019 2020 2021
$ 4,251,432 6,910,410 $ 6,896,856 $ 8,544,252 $ 8,482,800 $ 34,034,478 31,961,957 33,932,658 34,743,488 35,296,588
4,116,962 4,347,313 2,955,522 2,795,648 2,674,722
17,219,492 9,160,460 15,558,408 17,572,927 16,766,663
6,982,622 9,185,643 6,689,566 6,539,103 5,501,644
2,790,840 3,190,530 2,000,692 1,777,281 1,612,973
- - - - -
121,322 160,610 112,477 56,935 51,054
69,517,148 64,916,923 68,146,179 72,029,634 70,386,444
11,192,617 10,437,631 11,124,404 11,310,735 13,282,916
$ 80,709,765 75,354,554 $ 79,270,583 $ 83,340,369 $ 83,669,360 $ $ 2,038,573 2,474,664 $ 2,131,444 $ 2,246,355 $ 3,121,333 3,561,042 3,191,717 3,433,078 3,222,786 3,580,227
1,723,739 2,577,415 1,818,544 2,005,242 1,760,519
1,046,597 791,941 757,476 1,478,915 995,335
453,369 609,553 624,126 256,996 34,487
311,394 409,783 39,913 12,063 1,149
5,261,361 2,313,540 4,215,071 4,378,318 5,694,683
3,883,123 708,569 161,836 2,116,919 3,351,016
18,279,198 13,077,182 13,181,488 15,717,594 18,538,749
13,491,332 12,760,330 12,611,914 12,406,103 14,430,951
- 762,739 - 63,014 22,074.00
13,491,332 13,523,069 12,611,914 12,469,117 14,453,025
31,770,530 26,600,251 25,793,402 28,186,711 32,991,774
(51,237,950) (51,839,741) (54,964,691) (56,312,040) (51,847,695) 2,298,715 3,085,438 1,487,510 1,158,382 1,170,109
$ (48,939,235) (48,754,303) $ (53,477,181) $ (55,153,658) $ (50,677,586) $ Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(118)
2012 2013 2014 2015 2016
General Revenues and
Other Changes in Net Position:

Governmental Activities:

Taxes:

Sales and Use Taxes $ 23,655,903 22,868,333 $ 26,096,479 $ 26,432,547 $ 25,518,717 $ Property Taxes 3,150,294 11,386,328 3,601,771 4,088,687 3,425,637 Franchise Taxes 2,443,761 2,499,668 2,779,357 2,978,360 3,034,652 Transaction and Use Taxes - -
Motor Vehicle in Lieu Tax -
General Purpose 1,542,531 1,519,877 1,595,953 1,686,499 1,716,181 Business Operations Taxes 778,483 771,766 768,575 780,747 801,658 Utility Users Taxes 6,095,190 4,342,780 6,634,353 6,836,360 6,669,155 Other Taxes 890,344 518,095 416,269 567,503 531,045
Investment Income 1,384,050 1,988,650 1,416,003 1,440,422 1,807,176 Other 1,413,449 3,425,588 2,216,285 2,692,622 2,988,717 Gain (Loss) on Disposal of Asset 42,312 - -
Transfers to Successor Agency (1,181,525) 1,224,700 1,073,642 Transfers 1,633,857 1,582,575 1,597,099 - -
Special Item
Extraordinary Gain (2,249,862) 76,845,362 19,954,190 -
Total Governmental Activities 41,806,337 127,749,022 44,914,594 68,682,637 47,566,580 Business Type Activities:

Investment Income 9,809 4,830 11,929 15,849 27,006
Other 107,631 240,554 156,955
Transfers (1,633,857) (1,582,575) (1,597,099) (1,224,700) (1,073,642) Total Business Type Activities (1,624,048) (1,577,745) (1,477,539) (968,297) (889,681) Total Primary Government 40,182,289 126,171,277 43,437,055 67,714,340 46,676,899 Changes in Net Position:

Governmental Activities 21,016,496 66,244,520 12,789,917 23,345,526 (1,819,251) Business Type Activities 5,704,263 1,056,283 1,512,345 484,207 1,295,147 Total Primary Government $ 26,720,759 67,300,803 $ 14,302,262 $ 23,829,733 $ (524,104) $ Source: City of Santa Fe Springs Finance and Administrative Services Department Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(119)
2017 2018 2019 2020 2021
$ 26,093,872 25,076,235 $ 28,360,308 $ 30,689,739 $ 32,305,008 $ 4,130,663 3,949,731 4,587,444 4,958,288 13,682,006
3,180,671 2,915,926 3,377,884 3,495,821 5,961,342
- - 3,044,712 13,083,262 3,550,280
1,863,969 1,767,500 1,960,317 2,148,113 2,297,474
789,379 807,702 831,717 752,800 771,642
6,523,816 6,406,684 6,517,423 6,484,575 6,907,100
628,828 522,091 564,638 132,232 172,204
2,189,573 1,874,492 4,263,013 4,308,252 1,303,072
675,977 2,269,170 1,996,198 1,496,137 1,089,993
- - - 292,655 40,878
1,163,587 1,168,892 1,155,135 1,156,300 -
- 1,055,801 - - 1,154,424
- -
- - - - -
47,240,335 47,821,542 56,658,789 68,998,174 69,235,423
118,561 62,836 218,248 306,513 181,503
1,791,077 249,189 201,321 111,085 61,605
(1,163,587) (1,168,892) (1,155,135) (1,156,300) (1,154,424) 746,051 (856,867) (735,566) (738,702) (911,316)
47,986,386 46,964,675 55,923,223 68,259,472 68,324,107
(3,997,615) (4,018,199) 1,694,098 12,686,134 17,387,728 3,044,766 2,228,571 751,944 419,680 258,793
$ (952,849) (1,789,628) $ 2,446,042 $ 13,105,814 $ 17,646,521 $ Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(120)
2012 2013 2014 2015 2016
General Fund:

Nonspendable $ 5,224,843 6,047,653 $ 5,585,494 $ 4,753,064 $ 12,721,050 $ Restricted 98,801 181,532 98,821 322,843
Committed 225,000 1,455,318 225,000 225,000 225,000
Assigned 9,337,498 2,399,700 630,000
Unassigned 15,744,237 23,978,015 18,583,574 20,027,817 21,301,702 Total General Fund $ 30,531,578 31,662,518 $ 24,492,869 $ 27,504,402 $ 35,200,595 $ All Other Governmental Funds:

Nonspendable $ 1,018,291 7,634,198 $ 5,688,704 $ 4,330,950 $ - $ Restricted 8,894,627 4,401,519 3,863,639 25,059,379 32,050,597 Assigned 4,579,545 7,794,387 9,480,556 15,036,492
Unassigned - (1,621,191) (40,661) (16,968) (13,040)
Total All Other Governmental Funds $ 14,492,463 10,414,526 $ 17,306,069 $ 38,853,917 $ 47,074,049 $ Source: City of Santa Fe Springs Finance and Administrative Services Department Fiscal Year
activities as internal service funds, which were previously reported in the general fund.

Periods reported prior to fiscal year 2013 have not been restated to reflect this change.

In fiscal year 2013, the City elected to separately report employee benefits and equipment replacement

CITY OF SANTA FE SPRINGS, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(121)
2017 2018 2019 2020 2021
$ 7,809,238 11,441,321 $ 1,828,548 $ 2,224,444 $ 2,340,616 $ 1,070,451 869,331 1,194,990 1,344,838 1,612,762
225,000 225,000 225,000 225,000 225,000
6,585,155 3,629,664 10,997,012 22,126,736 31,285,627
21,730,547 21,868,047 22,675,644 24,121,539 24,884,524
$ 37,420,391 38,033,363 $ 36,921,194 $ 50,042,557 $ 60,348,529 $ $ 244,676 - $ 244,673 $ 244,676 $ 244,676 $
31,750,422 32,275,890 33,580,135 28,278,390 26,982,856
13,256,233 14,316,725 17,598,708 22,501,686 28,622,561
(3,913,948) (13,413) (3,222,614) (1,679,312) (3,279,711) $ 41,337,383 46,579,202 $ 48,200,905 $ 49,345,440 $ 52,570,382 $ Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(122)
2012 * 2013 2014 2015 2016
Revenues:

Taxes $ 36,999,332 42,294,544 $ 40,296,804 $ 41,684,204 $ 39,980,864 $ Licenses and Permits 2,969,902 2,102,755 2,747,847 2,206,324 2,536,719 Fines, Forfeitures and Seizures 344,325 428,472 491,503 529,250 515,632 Interest and Rentals 1,398,990 1,995,506 1,416,003 1,440,422 1,807,176 From Other Agencies 35,766,822 12,349,659 23,165,769 11,054,345 5,257,715 Charges for Current Services 4,965,080 5,031,896 5,147,329 5,250,369 6,078,535 Other 3,907,821 4,532,497 2,493,091 2,855,254 3,146,736 Total Revenues 86,352,272 68,735,329 75,758,346 65,020,168 59,323,377 Expenditures:

Current:

General Government 5,629,632 3,826,155 5,064,465 5,483,276 5,449,398 Public Safety 25,846,858 33,199,540 25,203,933 26,968,072 28,407,173 Community Development 3,346,701 13,434,645 3,991,264 3,755,596 3,876,256 Public Works 4,240,659 5,966,489 4,456,233 4,591,234 4,553,769 Culture and Leisure 7,130,910 7,604,051 6,974,428 6,995,907 7,337,952 Human Services 2,481,419 2,790,524 2,579,037 2,798,407 3,022,969 Capital Outlay 32,091,957 4,498,772 21,383,923 9,745,411 2,621,810 Loss on Sale of Property
Debt service:

Interest 310,664 3,042,465 278,854 240,815 209,663
Principal Retirement 789,060 7,295,987 983,524 1,045,658 988,940 Bond Issuance Costs - 119,993 - - -
Total Expenditures 81,867,860 81,778,621 70,915,661 61,624,376 56,467,930 Excess (Deficiency) of
Revenues Over (Under)
Expenditures (13,043,292) 4,484,412 4,842,685 3,395,792 2,855,447 Other Financing Sources (Uses):

Proceeds (Loss) from Sale of Assets 50,662 23,496 42,312 25,000 34,954 Loan Issuance - - - - -
Bond Issuance - 7,759,094 - - -
Contributions from Successor Agency (1,181,525) 995,421 - 100,238 48,465 Transfer to Private Purpose Trust Fund - - - (20,000) - Capital Leases - - - - -
Transfers In 6,600,367 22,577,622 8,805,993 6,524,301 8,616,801 Transfers Out (5,642,617) (20,995,047) (10,517,883) (4,749,901) (8,753,473) Total Other Financing
Sources (Uses) (173,113) 10,360,586 (1,669,578) 1,879,638 (53,253) Special Item - - - - -
Extraordinary Loss - (52,500,881) (8,408,716) 19,954,190 - Net Change in Fund Balances $ 4,311,299 (55,183,587) $ (5,235,609) $ $ 25,229,620 2,802,194 $ Debt Service as a Percentage of
Net Change in Fund Balances 13.5% 2.2% 2.1% 2.2% 2.2%
service funds, which were previously reported in the general fund. Periods reported prior to fiscal year 2013 have not been restated to reflect this change.

Source: City of Santa Fe Springs Finance and Administrative Services Department Fiscal Year
* During the fiscal year 2011-2012, the City issued pension obligation bonds in the amount of $7.1 million. The related payment to to PERS Safety Plan of $7.0 million is included in the public safety function expenditures.

In fiscal year 2013, the City elected to separately report employee benefits and equipment replacement activities as internal

CITY OF SANTA FE SPRINGS, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(123)
2017 2018 2019 2020 2021
$ 43,211,198 39,678,369 $ 49,244,443 $ 62,150,070 $ 65,647,056 $ 2,363,791 2,750,708 2,145,963 2,485,395 2,228,200
487,549 492,313 738,807 788,382 380,754
2,189,573 1,874,492 4,263,013 4,667,628 1,514,370
4,640,275 5,357,852 4,551,765 6,210,417 5,495,267
5,899,159 5,798,869 5,524,875 5,346,393 6,463,339
1,671,228 2,464,110 2,698,764 2,467,770 2,274,675
60,462,773 58,416,713 69,167,630 84,116,055 84,003,661
3,795,998 6,282,824 6,876,387 7,902,106 8,521,649
31,403,449 29,775,257 30,466,404 30,472,065 33,162,493
3,935,033 4,214,838 2,777,781 2,649,405 2,758,116
10,447,798 4,687,638 10,651,342 11,375,367 11,324,465
5,932,050 8,356,661 5,698,374 5,554,076 5,029,572
2,303,821 2,885,022 1,532,644 1,414,482 1,418,131
5,960,909 4,208,654 5,459,285 10,174,605 12,561,418
123,174 162,419 95,235 63,389 21,337
1,133,745 1,059,310 1,488,130 1,464,840 176,868
- - - - -
65,035,977 61,632,623 65,045,582 71,070,335 74,974,049
(4,573,204) (3,215,910) 4,122,048 13,045,720 9,029,612
- 7,318 - 292,655 40,878
- - - - -
- - - - -
- - - - -
- - - - -
- - 1,087,142 - 3,306,000
4,902,747 6,879,579 10,635,624 9,593,689 12,168,606
(3,739,160) (2,388,867) (9,480,489) (8,437,389) (11,014,182) 1,163,587 4,498,030 2,242,277 1,448,955 4,501,302
- - - - -
- 1,055,801 - - -
$ (3,409,617) 2,337,921 $ 6,364,325 $ 14,494,675 $ 13,530,914 $

2.1% 2.1% 2.6% 2.6% 2.6%
Fiscal Year

CITY OF SANTA FE SPRINGS, CALIFORNIA

ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
(124)
Less Net Total
Fiscal Secured Unsecured Property Grand Homeowner's Taxable Direct Year Property Property Exemptions Total Exemption Value (1) Tax Rate (2) 2012 5,164,916 $ 943,242 $ 65,907 $ 6,042,251 $ 15,124 $ 6,027,127 $ 0.077% 2013 5,299,330 963,433 56,513 6,206,250 15,072 6,191,178 0.077% 2014 5,491,905 964,947 67,488 6,389,364 15,020 6,374,344 0.077% 2015 5,819,662 1,002,581 67,730 6,754,513 15,194 6,739,319 0.077% 2016 5,954,556 993,740 88,515 6,859,781 15,058 6,844,723 0.077% 2017 6,101,589 1,054,534 80,496 7,075,627 14,805 7,060,822 0.077% 2018 6,463,463 1,061,430 70,198 7,454,696 14,547 7,440,148 0.077% 2019 6,820,231 1,104,056 78,617 7,845,670 14,262 7,831,408 0.077% 2020 7,432,543 1,184,857 38,932 8,578,468 14,162 8,564,306 0.077% 2021 8,031,534 1,251,065 99,021 9,183,578 13,761 9,169,817 0.077% NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
(1) Net taxable value does not include state utility value (2) Total direct tax rate is the City share of the 1% proposition 13 tax only for TRA 05-333 Source: County Assessor data, MuniServices, LLC / Avenue Insights & Analytics

CITY OF SANTA FE SPRINGS, CALIFORNIA

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(PER $100 OF ASSESSED VALUE)
(125)
Rio Hondo Whitter
City of Los Los Community Union Metro.

Fiscal Santa Fe Angeles Elementary Angeles College High School Water Year Springs County Schools County District District District Total 2012 0.077 0.923 0.053 0.000 0.034 0.043 0.004 1.134
2013 0.077 0.923 0.069 0.000 0.028 0.046 0.004 1.147
2014 0.077 0.923 0.085 0.000 0.029 0.045 0.004 1.163
2015 0.077 0.923 0.080 0.000 0.028 0.053 0.004 1.165
2016 0.077 0.923 0.065 0.000 0.027 0.051 0.004 1.147
2017 0.077 0.923 0.075 0.000 0.028 0.060 0.004 1.167
2018 0.077 0.923 0.079 0.000 0.027 0.058 0.004 1.168
2019 0.077 0.923 0.076 0.000 0.026 0.058 0.004 1.164
2020 0.077 0.923 0.065 0.000 0.026 0.055 0.004 1.150
2021 0.077 0.923 0.065 0.000 0.014 0.054 0.004 1.137
NOTE:

Source: Los Angeles County Auditor/Controller data, MuniServices, LLC / Avenue Insights & Analytics Rates are not adjusted for ERAF
Override Assessments
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% general levy, Los Angeles County, have levied direct assessments in addition to the 1.00% general levy. elementary school districts, Rio Hondo College District, Whittier Union High School District, and Metropolitan Water District all Basic 1% Direct Tax Rate

CITY OF SANTA FE SPRINGS, CALIFORNIA

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND TEN YEARS AGO
(126)
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Golden Springs Dev $ 3.58 % 264,653,490 328,375,799 $ 4.39 % Goodman Santa Fe Springs Spe L 2.30 210,803,393
GLC SFS II LLC 1.74 159,658,742
Teachers Insurance Annuity Ass 1.74 69,087,778 159,410,695 1.15 PPF Industrial 12016 Telegraph 1.72 32,386,718 157,562,364 0.54 Breitburn Operating LP 1.51 131,835,834 138,138,308 2.19 AMB 1.46 72,323,674 133,551,310 1.20
PSB Hathaway I II LLC 1.13 104,000,000
Mcmaster Carr Supply Company 0.94 74,497,928 86,375,848 1.24 SDCP SFS Logistics Cneter Inc. 0.73 67,381,401
Breit MF Telegraph Rd LLC 0.63 57,895,322
Unified Grocers Inc. 0.61 56,244,022
Freeway Springs LLC 0.59 54,369,597
Rexford Industrial Realty LP 0.57 52,665,914
Standard SVF Venture LP 0.56 51,462,330
Western B West CA LLC 0.54 49,477,972
Shaw Diversified Services Inc. 0.52 47,614,980
BPREP Colonnade LLC 0.51 46,410,000
Maruichi American Corp 0.50 42,898,041 45,716,326 0.71
Catellus Dev Corp 0.50 55,169,874 45,687,481 0.92
Kelly Pipe Co LLC 0.48 43,860,000
Bloomfield Commerce Center Cor 0.47 36,980,955 43,418,066 0.61 Heraeus Metal Processing Inc. 0.46 41,926,566
Brixmor Property Owner II LLC 0.45 40,898,505
IPT Mid Counties IC LLC 0.44 40,619,442
Legacy Partners II Santa Fe Sp 1.34 80,547,163
Gateway Santa Fe Springs Indus 1.06 64,000,000
Inland Paperboard 0.80 48,375,561
Villages At Heritage Springs L 0.76 45,894,463
Heraeus Metals Processing LLC 0.76 45,629,959
Doug Fir LLC 0.75 45,231,396
Vons Companies Inc. 0.73 44,063,285
Solaris Paper Inc. 0.61 36,945,052
Centro Watt Property Owner Ii 0.53 31,727,354
14141 Alondra Lp 0.52 31,466,613
CFH Envp Ltd. Ptnshp 0.52 31,054,138
Carmenita Plaza LLC 0.50 30,166,684
Prudential Insurance Co of Ame 0.45 27,391,345
Tuftex Carpet Mill Inc. 0.45 27,328,126
NNN SFS Towne Center LLC 0.45 27,300,000
Prologis 0.43 25,676,637
$ 24.67 % 1,422,632,068 2,263,524,383 $ 23.62 %
NOTE:

The amounts shown above include assessed value data for both the City and Redevelopment Agency MuniServices, LLC / Avenue Insights &
FY 2020-21 FY 2011-12

CITY OF SANTA FE SPRINGS, CALIFORNIA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(127)
Collected within the
Fiscal Year Fiscal Year of Levy Collections in Collections to Date Ended Total Percent Subsequent Percent of
June 30 Tax Levy Amount of Levy Years Amount Levy
2012 30,577,401 $ 29,841,895 $ 97.59 - $ 29,841,895 $ 97.59 % 2013 31,385,138 30,858,535 98.32 - 30,858,535 98.32
2014 33,546,785 33,210,254 99.00 - 33,210,254 99.00
2015 35,511,774 35,217,986 99.17 - 35,217,986 99.17
2016 34,092,546 33,826,245 99.22 - 33,826,245 99.22
2017 34,802,722 34,524,691 99.20 - 34,524,691 99.20
2018 37,721,588 36,571,390 96.95 - 36,571,390 96.95
2019 39,275,800 38,914,079 99.08 - 38,914,079 99.08
2020 45,613,414 45,027,883 98.72 - 45,027,883 98.72
2021 46,103,009 45,790,160 99.32 - 45,790,160 99.32
NOTE:

The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies.

The City receives limited information from Los Angeles County in relation to tax levies and collections. The City was unable to obtain further detail from Los Angeles County regarding the collections in excess of the levy amount after 2011.

Source: County Assessor Data,MuniServices, LLC / Avenue Insights & Analytics

CITY OF SANTA FE SPRINGS, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(128)
Business-Type
Governmental Activities Activities
Fiscal Year Tax Pension Capitalized Total Total Percentage Debt Ending Allocation Obligation Lease Governmental Revenue Primary of Personal Per June 30 Loans Bonds Bonds Obligations Activities Bonds Government Income1 Capita1 20122 $ - 802,216 $ 7,091,000 $ 612,094 $ 8,505,310 $ 6,917,664 $ 15,422,974 $ 4.81 % 934 $ 20132 - 503,156 6,601,000 612,094 7,716,250 9,282,194 16,998,444 5.11 1,01120142 - 257,024 5,944,000 531,702 6,732,726 9,231,693 15,964,419 4.81 96620152 - - 5,238,000 449,068 5,687,068 9,069,544 14,756,612 3.93 83720162 - - 4,334,000 364,128 4,698,128 8,902,394 13,600,522 3.49 73720172 - - 3,362,000 276,819 3,638,819 8,725,243 12,364,062 3.06 67620182 - - 2,318,000 693,218 3,011,218 8,366,795 11,378,013 2.64 62120192 - - 1,199,000 905,085 2,104,085 8,177,762 10,281,847 2.27 563 2020 - - - 639,246 639,246 7,983,729 8,622,975 1.83 471 2021 - - - 3,768,377 3,768,377 7,789,696 11,558,073 2.29 638 NOTES:Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 These ratios are calculated using personal income and population for the prior calendar year.2 Loans and Tax Allocation Bonds related to the dissolved redevelopment agency were transferred to the Successor Agency and are reported in the private purpose trust fund as of July 1, 2011.Prior year data has been adjusted for updated personal income information obtained after the 2010 Census.Source: City of Santa Fe Springs Department of Finance and Administrative Services

CITY OF SANTA FE SPRINGS, CALIFORNIA

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(129)
Fiscal Year Tax Pension Total Percent of
Ending Allocation Obligation General Assessed Per
June 30 Bonds Bonds Bonded Debt Value1 Capita
20122 $ 7,091,000 - $ 7,091,000 $ 0.12% 429 $
20132 6,601,000 - 6,601,000 0.11% 393
20142 5,944,000 - 5,944,000 0.09% 360
20152 5,238,000 - 5,238,000 0.08% 297
20162 4,334,000 - 4,334,000 0.06% 235
20172 3,362,000 - 3,362,000 0.05% 184
20182 2,318,000 - 2,318,000 0.03% 126
20192 1,199,000 - 1,199,000 0.02% 66
20202 - - - 0.00% -
20212 - - - 0.00% -
NOTE:

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
2 Tax Allocation Bonds related to the dissolved redevelopment agency were transferred to the Successor Agency and are reported in the private purpose trust fund.

Source: City of Santa Fe Springs Finance and Administrative Services Department Outstanding General
Bonded Debt

CITY OF SANTA FE SPRINGS, CALIFORNIA

DIRECT AND OVERLAPPING DEBT
JUNE 30, 2021
(130)
2020-21 Assessed Valuation: $9,189,735,171
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/2021 Metropolitan Water District 26,830,000 $ 0.282 % 75,661 $ Cerritos Community College District 392,415,943 4.736 18,584,819 Rio Hondo Community College District 117,367,824 15.357 18,024,177 Whittier Union High School District 156,424,361 23.939 37,446,428 ABC Unified School District 77,910,530 2.854 2,223,567
Norwalk-La Mirada Unified School District 290,074,014 13.739 39,853,269 Little Lake City School District 35,344,901 61.625 21,781,295 Los Nietos School District 35,465,132 61.974 21,979,161 South Whittier School District 37,965,000 45.946 17,443,399 Whittier City School District 70,860,000 0.637 451,378
City of Santa Fe Springs Heritage Springs Assessment District 1,325,000 100.000 1,325,000 Total Overlapping Tax and Assessment Debt 179,188,154 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations 2,618,507,256 $ 0.538 % 14,087,569 $ Los Angeles County Superintendent of Schools
Certificates of Participation 4,565,373 0.538 24,562
Whittier City School District Certificates of Participation 9,240,000 0.637 58,859 City of Santa Fe Springs Capital Lease Obligations 462,377 100.000 462,377 Los Angeles County Sanitation District No. 18 Authority 1,402,108 19.454 272,766 Total Direct and Overlapping General Fund $ 14,906,133
Overlapping Tax Increment Debt (Successor Agency): $ 100.000 % 34,146,370 34,146,370 $ Total Direct Debt $ 462,377
Total Overlapping Debt $ 227,778,280
Combined Total Debt $ (2) 462,377
Ratios to 2019-20 Assessed Valuation:

Total Overlapping Tax and Assessment Debt….................................. 1.95 % Total Direct Debt ($462,377)…......................................................... 0.01 % Combined Total Debt…....................................................................... 2.48 % Ratios to Redevelopment Successor Agency Incremental Valuation ($5,060,812,423):

Total Overlapping Tax Increment Debt 0.67 %
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and nonbonded capital lease obligations.

CITY OF SANTA FE SPRINGS, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(131)
2012 2013 2014 2015
Assessed Valuation 6,042,251,000 $ 6,206,250,000 $ 6,389,364,000 $ 6,754,513,000 $ Conversion Percentage 25% 25% 25% 25%
Adjusted Assessed Valuation 1,510,562,750 1,551,562,500 1,597,341,000 1,688,628,250 Debt Limit Percentage 15% 15% 15% 15%
Debt Limit 226,584,413 232,734,375 239,601,150 253,294,238 Total Net Debt Applicable to the Limit:

General Obligation Bonds1 6,601,000 7,091,000 5,944,000 5,238,000 Legal Debt Margin 219,493,413 $ 226,133,375 $ 233,657,150 $ 248,056,238 $ Total Debt Applicable to the Limit
as a Percentage of Debt Limit 0.0% 0.0% 2.5% 2.1%
NOTE:

Fiscal Year Ended June 30
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with Fiscal Year 1981-82, each parcel is now assessed at 100% of market value (as of the most recent) in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State. 1 The City issued pension obligation bonds during Fiscal Year 2011-12 Source: City of Santa Fe Springs Finance and Administrative Services Department Los Angeles County, Auditor-Controller

CITY OF SANTA FE SPRINGS, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
(132)
2016 2017 2018 2019
Assessed Valuation 6,874,971,507 $ 7,078,133,887 $ 7,446,116,929 $ 7,831,408,399 $ Conversion Percentage 25% 25% 25% 25%
Adjusted Assessed Valuation 1,718,742,877 1,769,533,472 1,861,529,232 1,957,852,100 Debt Limit Percentage 15% 15% 15% 15%
Debt Limit 257,811,432 265,430,021 279,229,385 293,677,815 Total Net Debt Applicable to the Limit:

General Obligation Bonds1 3,362,000 4,334,000 2,318,000 1,199,000 Legal Debt Margin 253,477,432 $ 262,068,021 $ 276,911,385 $ 292,478,815 $ Total Debt Applicable to the Limit
as a Percentage of Debt Limit 1.7% 1.3% 0.8% 0.4%
NOTE:

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with Fiscal year 1981-82, each parcel is now assessed at 100% of market value (as of the most recent) in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State.

Fiscal Year Ended June 30
1 The City issued pension obligation bonds during Fiscal Year 2011-12 Source: City of Santa Fe Springs Finance and Administrative Services Department Los Angeles County, Auditor-Controller

CITY OF SANTA FE SPRINGS, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
(133)
2020 2021
Assessed Valuation 8,570,322,631 $ 9,189,735,171 $
Conversion Percentage 25% 25%
Adjusted Assessed Valuation 2,142,580,658 2,297,433,793 Debt Limit Percentage 15% 15%
Debt Limit 321,387,099 344,615,069
Total Net Debt Applicable to the Limit:

General Obligation Bonds1 - -
Legal Debt Margin 321,387,099 $ 344,615,069 $
Total Debt Applicable to the Limit
as a Percentage of Debt Limit - -
NOTE:

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with Fiscal Year 1981-82, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State. 1 The City issued pension obligation bonds during Fiscal Year 2011-12 Source: City of Santa Fe Springs Finance and Administrative Services Department Los Angeles County, Auditor-Controller
Fiscal Year Ended June 30

CITY OF SANTA FE SPRINGS, CALIFORNIA

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(134)
Less Net
Fiscal Water Operating Available Debt Service
Year Revenue Expenses Revenue Principal Interest Coverage 2012 11,753,221 $ 8,865,034 $ 2,888,187 $ 195,000 $ 356,307 $ 5.24 2013 13,063,973 8,604,389 4,459,584 200,000 338,298 8.28 2014 13,879,295 9,453,643 4,425,652 155,000 319,342 9.33 2015 12,604,783 9,674,355 2,930,428 165,000 373,579 5.44 2016 12,398,568 9,210,440 3,188,128 170,000 365,329 5.96 2017 13,772,258 9,488,599 4,283,659 180,000 356,830 7.98 2018 15,282,409 10,181,577 5,100,832 180,000 347,800 9.66 2019 12,936,754 10,173,874 2,762,880 195,000 325,379 5.31 2020 12,823,701 10,649,931 2,173,770 200,000 318,349 4.19 2021 14,674,059 12,009,075 2,664,984 200,000 313,569 5.19 NOTE:

Source: City of Santa Fe Springs Finance and Administrative Services Department Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses. 1 The tax allocation bonds were transferred to the private purpose trust fund during Fiscal Year 2011-12 as a result of the dissolution of redevelopment agencies Water Revenue Bonds

CITY OF SANTA FE SPRINGS, CALIFORNIA

PLEDGED-REVENUE COVERAGE (CONTINUED)

LAST TEN FISCAL YEARS
(135)

Fiscal Tax Debt Service
Year Increment Principal Interest Coverage
2012 - $ - $ - $ -
2013 - - - -
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
NOTE:

Source: City of Santa Fe Springs Finance and Administrative Services Department Details regarding the City's outstanding debt can be found in the notes to the financial Tax Allocation Bonds
statements. Operating expenses do not include interest or depreciation expenses. 1 The tax allocation bonds were transferred to the private purpose trust fund during Fiscal Year 2011-12 as a result of the dissolution of redevelopment agencies

CITY OF SANTA FE SPRINGS, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
(136)
Personal Per Capita *Public
Fiscal Income Personal School Unemployment
Year Population (in thousands) Income Enrollment Rate
2012 16,516 320,960 $ 19,433 $ 6,632 $ 9.2 %
2013 16,816 332,410 19,767 6,379 9.1
2014 16,524 331,945 20,089 6,327 8.2
2015 17,627 375,077 21,279 6,632 8.4
2016 18,459 389,558 21,104 6,632 8.0
2017 18,291 404,312 22,104 6,632 6.2
2018 18,335 431,061 23,510 5,621 2.2
2019 18,261 452,842 24,798 6,632 2.5
2020 18,295 471,861 25,792 6,632 13.1
2021 18,129 504,701 27,839 5,203 0.1
NOTE:

The data for prior years has been adjusted based on currently available data.

Sources:

Income Data is provided by the United States Census Bureau, 2010 American Community Survey.

Unemployment Rates are provided by the State of California, Employment Development Department Labor Market Information Division.
*Student Enrollment reflects the total number of students enrolled in Santa Fe Springs Schools, which occur in several different school districts.

Population Projections are provided by the California Department of Finance Projections.

CITY OF SANTA FE SPRINGS, CALIFORNIA

PRINCIPAL EMPLOYERS

CURRENT YEAR AND TEN YEARS AGO
(137)
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Fashtion Nova, Inc. 1013 2.51%
McMaster Carr Supply Company 702 1.74% 706 1.82%
FedeEx Ground Package System In 470 1.16%
Trojan Battery Company LLC 396 0.98% 305 0.79%
Southern Wine and Spirits 385 0.95% 422 1.09%
7-Eleven Distribution Company 356 0.88%
Wal-Mart 352 0.87%
SE Pipe Line Construction 331 0.82%
L. A. Specialty Produce Company 318 0.79% 409 1.05%
Shaw Diversified Services, Inc. 317 0.78% 355 0.91%
The Vons Companies, Inc. 785 2.02%
Presto Food Products, Inc. 460 1.18%
Vance and Hines, Inc. 0.82% 320
Performance Team 0.78% 302
Mike Thompson's Rec Veh 276 0.71%
4,640 11.48% 4,340 11.17%
NOTE:
"Total Employment" as used above represents the total employment of all employers located within City limits.

Source: City of Santa Fe Springs Finance and Administrative Services Department FY 2020-21 FY 2011-12

CITY OF SANTA FE SPRINGS, CALIFORNIA

FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(138)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government 38 36 37 39 38 38 37 39 39 38
Public Safety 72 68 79 83 83 76 73 70 72 70
Public Works 50 50 57 54 56 58 57 55 52 57
Planning and Community Development 7 4 4 6 7 7 6 7 9 9
Community Services - Administration - 1 1 1 4 4 4 4 4 3 Community Services - Parks and Recreation 88 64 75 88 88 106 108 93 27 75 Community Services - Library Services 23 16 14 17 22 20 22 23 14 16 Community Services - Human Services 42 41 48 48 54 50 39 32 11 27 Total 320 280 315 336 352 359 346 323 228 295
Source: City of Santa Fe Springs Finance and Administrative Services Department Fiscal Year Ended June 30

CITY OF SANTA FE SPRINGS, CALIFORNIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(139)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fire:

Number of Emergency Calls 2,963 3,166 3,260 3,439 3,928 3,961 3,835 3,732 3,644 3,542 Inspections 2,255 3,793 2,864 3,325 2,428 1,702 1,598 1,798 2,209 1,916 Public Works:

Street Resurfacing (Miles) 2.0 3.0 5.0 3.0 1.5 1.0 2.0 1.5 3.0 5.2 Parks and Recreation:

Number of Recreation Classes 362 289 425 368 335 309 393 356 216 157 **Number of Facility Rentals 2,710 2,536 2,605 3,038 3,822 3,791 4,323 4,073 1,575 4 Human Services:

Children Served in the City's ***Childcare Centers 371 306 296 286 807 1,006 266 - - - Number of Facility Rentals 42 * 51 * 333 528 305 536 878 983 671 2 Number of Older Adult Gym Usage 4,476 1,500 4,895 3,245 - Number of Older Adult Classes 40 40 42 28 4Estimated Number of Congregate Meals 10,002 12,000 11,700 12,400 10,700 Water:

Average daily consumption (thousands of gallons) 5,743 5,915 5,197 5,207 5,580 5,073 5,615 5,379 5,314 5,809 NOTES:Source: City of Santa Fe Springs
Fiscal Year Ended June 30
**Numbers were modified from 2011 and on to include all facility rentals (i.e. parks, meeting rooms, fields, Clake Estate, Social Hall, Heritage Park, etc.)*** 2019's number has reduced significantly due to no longer partnering with Child care for summer camp.* Reflective of the limited availability of the Neighborhood Center due to construction.

CITY OF SANTA FE SPRINGS, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
(140)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fire:

Fire Stations * 4 4 4 4 4 4 4 4 4 4
Public Works:

Streets (Miles) 110 110 110 110 110 110 110 110 110 110 Traffic Signals 75 75 75 75 81 81 81 81 81 81
Streetlights 2,960 2,960 2,960 2,960 3,174 3,140 3,140 3,140 3,140 3,140 Parks and Recreation:
**Parks/Fields 10 11 11 11 11 11 11 9 9 9
**Community Services Facilities 6 6 4 4 4 4 4 4 4 4
Human Services:

Child Care Centers 3 3 3 3 3 3 3 - - -
Community Services Facilities 1 2 2 1 1 1 1 3 3 3
Library Services:

Library Facilities 2 2 2 2 2 2 2 2 2 2
Water:

Water Mains (Miles) 107 107 107 107 108 108 108 108 108 108 Number of Service Connections 6,332 6,156 6,150 6,330 6,335 6,402 6,509 6,731 6,722 6,232 NOTES:* For a portion of FY 2012-13 (August 2012 - April 2013) there were three (3) operating fire stations.**Numbers were modified to include all City fields and additional facilities not captured elsewhere on this report. Source: City of Santa Fe Springs Fiscal Year Ended June 30
CliftonLarsonAllen LLP
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To the Honorable Mayor and
Members of the City Council
of the City of Santa Fe Springs
Santa Fe Springs, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Santa Fe Springs (the City) as of and for the year ended June 30, 2021, and have issued our report thereon dated January 27, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Santa Fe Springs are described in Note 1 to the financial statements.

As described in Note 1, the City adopted Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in fiscal year 2020-2021. Accordingly the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Changes in Fiduciary Net Position as an increase in net position by $759,319.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
 The annual required contributions, pension expense, net pension liability and corresponding deferred outflows of resources and deferred inflows of resources for the City’s public defined benefit plans with CalPERS are based on actuarial valuations provided by CalPERS.  The OPEB actuarially determined contribution, OPEB expense, total OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s OPEB plan are based on certain actuarial assumptions and methods prepared by an outside consultant.

Honorable Mayor and
Members of the City Council
City of Santa Fe Springs

Page 2 ends

Santa Fe Springs City CouncilMarch 1, 2022

Santa Fe Springs City Council
March 1, 2022