Agenda packet, first session — Santa Fe Springs City Council, March 18, 2025 (part 1 of 3)

Agenda

03.18.2025 - CITY COUNCIL AGENDA.PDF
Meeting Materials
MARCH 18, 2025, MEETING VIDEO

03.18.2025 AGENDA PACKET.PDF

1. Documents:

2. Documents:

CITY OF SANTA FE SPRINGS

MEETINGS OF THE PUBLIC FINANCING AUTHORITY,

WATER UTILITY AUTHORITY, HOUSING SUCCESSOR,

SUCCESSOR AGENCY, AND CITY COUNCIL
AGENDA
TUESDAY, MARCH 18, 2025
AT 5:00 P.M.

CITY HALL COUNCIL CHAMBERS
11710 TELEGRAPH ROAD
SANTA FE SPRINGS, CA 90670

CITY COUNCIL
William K. Rounds, Mayor
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Councilmember
Juanita Martin, Councilmember
John M. Mora, Councilmember

CITY MANAGER CITY ATTORNEY
René Bobadilla, P.E. Rick Olivarez

CITY STAFF
Assistant City Manager Nicholas Razo
Fire Chief Chad Van Meeteren
Police Chief Aviv Bar
Director of Community Development Cuong Nguyen
Director of Community Services Maricela Balderas
Director of Finance Lana Dich
Director of Parks & Recreation Gus Hernandez
Director of Police Services Arlene Salazar
Director of Public Works James Enriquez
City Clerk Fernando N. Muñoz
March 18, 2025: City Council Meeting Page 2 of 9

NOTICES
This City Council Meeting (“Council”) will be held in person and will meet at City Hall – City Council Chambers, 11710 E. Telegraph Road, Santa Fe Springs, California. The meeting will be live streamed on the City’s YouTube Channel and can be accessed on the City’s website via the following link:
https://santafesprings.gov/city_council/city_council_meetings/index.php 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.

SB 1439: Effective January 1, 2025, City Council Members are subject to SB 1439 and cannot participate in certain decisions for a year after accepting campaign contributions of more than $500 from an interested person. The Council Member would need to disclose the donation and abstain from voting.

Public Comments: 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 on the day of the meeting, please fill out a speaker card provided at the door and submit it to City Clerk staff. 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. 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.

Council Meeting Start Times: If there is a closed session or study session scheduled on the agenda, the regular meeting shall be scheduled to start at 5:00 p.m. and open session shall start at 6:00 p.m. If there is no closed session or study session scheduled on the agenda, the regular meeting shall be scheduled to start at 6:00 p.m.

Please Note: Staff reports and supplemental attachments are available for inspection online and at the office of the City Clerk in City Hall, during regular business hours 7:30 a.m. – 5:30 p.m., Monday – Thursday. Telephone: (562) 868-0511.

March 18, 2025: City Council Meeting Page 3 of 9

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, the general public may address the City Council on closed session items only.

Please be aware that the maximum time allotted for members of the public to speak shall not exceed three (3) minutes per speaker. State Law prohibits the City Council from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the City Council.

1. CLOSED SESSION

CONFERENCE WITH REAL PROPERTY NEGOTIATIORS
(Pursuant to Government Code Section 54956.8)
Property: Assessor Parcel No. 8001-003-934
Agency negotiator: René Bobadilla, City Manager, and Cuong Nguyen, Director of Community Development
Negotiating parties: Jamboree Housing Corporation
Under negotiation: Price and Terms

2. CLOSED SESSION
CONFERENCE WITH LEGAL – ANTICIPATED LITIGATION: One Matter (Pursuant to Government Code Section 54956.9(d)(2) and 54956.9(e)(1)

CLOSED SESSION REPORT
REGULAR SESSION – BEGINNING AT 6:00 P.M.

INVOCATION

PLEDGE OF ALLEGIANCE

INTRODUCTIONS

PRESENTATIONS

3. WHITTIER POLICE DEPARTMENT CRIME STATISTICS REPORT
(POLICE SERVICES)

CHANGES TO AGENDA

PUBLIC COMMENTS ON NON-AGENDA & NON-PUBLIC HEARING AGENDA ITEMS At this time, the general public may address the City Council on both non-agenda and nonpublic hearing agenda items. Comments relating to public hearing items will be heard during the public hearing. Please be aware that the maximum time allotted for members of the public to speak shall not exceed three (3) minutes per speaker. State Law prohibits the City March 18, 2025: City Council Meeting Page 4 of 9
Council from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the City Council.

STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST

PUBLIC HEARING

4. ORDINANCE NO. 1155 – AMEND SECTION 155.519 (INTERSTATE 605 CORRIDOR ELECTRONIC BILLBOARD SIGN PROGRAM) WITHIN TITLE 15 (LAND USE), CHAPTER 155 (ZONING), OF THE SANTA FE SPRINGS

MUNICIPAL CODE AND DETERMINE THAT THE ACTION IS EXEMPT UNDER

CEQA (COMMUNITY DEVELOPMENT)
RECOMMENDATION: It is recommended that the City Council:
1) Open the Public Hearing; and
2) Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3) Find and determine that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and
4) Introduce by title only and waive further reading of Ordinance No. 1155: An Ordinance of the City of Santa Fe Springs Municipal Code relating to electronic billboards in manufacturing zones of the Interstate 605 Corridor; and 5) Take such additional, related, action that may be desirable.

OLD BUSINESS – NONE

REGULAR BUSINESS

5. FISCAL YEAR (FY) 2023-24 YEAR-END REVIEW AND PRESENTATION OF THE CITY’S ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) (FINANCE) RECOMMENDATION: It is recommended that the City Council:
1) Receive and file the City’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year (FY) ending June 20, 2024, and related communications.

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine. Any items a Councilmember wishes to discuss should be designated at this time. All other items may be approved in a single motion. Such approval will also waive the reading of any Ordinance.

March 18, 2025: City Council Meeting Page 5 of 9

PUBLIC FINANCING AUTHORITY

6. MINUTES OF THE FEBRUARY 18, 2025 PUBLIC FINANCING AUTHORITY

MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the Public Financing Authority:
1) Approve the minutes as submitted.

7. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED

THROUGH THE CITY OF SANTA FE SPRINGS PUBLIC FINANCING AUTHORITY (PFA) (FINANCE)
RECOMMENDATION: It is recommended that the Public Financing Authority:
1) Receive and file the report.

WATER UTILITY AUTHORITY

8. MINUTES OF THE FEBRUARY 18, 2025 WATER UTILITY AUTHORITY

MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the Water Utility Authority:
1) Approve the minutes as submitted.

9. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED

THROUGH THE CITY OF SANTA FE SPRINGS WATER UTILITY AUTHORITY (WUA) (FINANCE)
RECOMMENDATION: It is recommended that the Water Utility Authority:
1) Receive and file the report.

HOUSING SUCCESSOR

10. MINUTES OF THE FEBRUARY 18, 2025 HOUSING SUCCESSOR MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the Housing Successor:
1) Approve the minutes as submitted.

SUCCESSOR AGENCY

11. MINUTES OF THE FEBRUARY 18, 2025 SUCCESSOR AGENCY MEETINGS (CITY CLERK)
March 18, 2025: City Council Meeting Page 6 of 9
RECOMMENDATION: It is recommended that the Successor Agency:
1) Approve the minutes as submitted.

CITY COUNCIL

12. MINUTES OF THE FEBRUARY 18, 2025 CITY COUNCIL MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the City Council:
1) Approve the minutes as submitted.

13. SECOND READING OF ORDINANCE NO. 1158 – AMENDING TITLE III (ADMINISTRATION) TO ADD NEW CHAPTER 41 (ELECTRONIC RECORDS AND

SIGNATURES) TO THE SANTA FE SPRINGS MUNICIPAL CODE AND

DETERMINE THAT THE ACTION IS EXEMPT UNDER CEQA (CITY CLERK) RECOMMENDATION: It is recommended that the City Council:
1) Adopt Ordinance No. 1158:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS, CALIFORNIA, AMENDING TITLE III (ADMINISTRATION) OF THE SANTA FE SPRINGS MUNICIPAL CODE (“SFSMC”) BY ADDING A NEW CHAPTER 41 (ELECTRONIC RECORDS AND SIGNATURES) TO ESTABLISH

A POLICY FOR THE USE OF ELECTRONIC RECORDS AND ELECTRONIC OR

DIGITAL SIGNATURES
2) Take such additional, related action that may be desirable.

14. AUTHORIZATION TO AWARD COMPREHENSIVE ZONING CODE UPDATE SERVICES (RFP 25-8) TO LISA WISE CONSULTING
(COMMUNITY DEVELOPMENT)
RECOMMENDATION: It is recommended that the City Council:
1) Authorize the award of RFP 25-8 to Lisa Wise Consulting for the Comprehensive Zoning Code Update; and
2) Approve the Professional Service Agreement between the City of Santa Fe Springs and Lisa Wise Consulting; and
3) Take such additional, related action that may be desirable.

15. 2024 HOUSING ELEMENT ANNUAL PROGRESS REPORT
(COMMUNITY DEVELOPMENT)
March 18, 2025: City Council Meeting Page 7 of 9
RECOMMENDATION: It is recommended that the City Council:
1) Find that the preparation, review, and submission of the 2024 Housing Element Annual Progress Report is not subject to the California Environmental Quality Act (CEQA), as the actions are not a project as defined by Section 15378(b)(2) of the Public Resources Code; and
2) Receive and file the 2024 Housing Element Annual Progress Report; and 3) Authorize staff to submit the 2024 Housing Element Annual Progress Report to the California Department of Housing and Community Development (HCD) and to the Governor’s Office of Planning and Research (OPR).

16. CALIFORNIA STATE LIBRARY GRANT AWARD FOR LUNCH AT THE LIBRARY

PROGRAM (COMMUNITY SERVICES)
RECOMMENDATION: It is recommended that the City Council:
1) Approve and authorize the Director of Community Services to execute the agreement for California State Library Grant Award for the Lunch At The Library Program at the Santa Fe Springs City Library; and
2) Approve the recognition of $8,800 in grant funds awarded by the California State Library and authorize the deposit of these funds into the Library & Cultural Services Administration's State Grants/Subventions revenue account (No. 10105699-442000); and
3) Approve an increase in expense authority by $8,800 in the Library & Cultural Services Activity (No. 10105699) as outlined in the Fiscal Impact section to allow for the expenditure of the grant funds; and
4) Take such additional, related, action that may be desirable.

17. AUTHORIZE THE TWO-YEAR LEASE OF 11 ADDITIONAL FLOCK SAFETY

FIXED AUTOMATED LICENSE PLATE READER (ALPR) CAMERAS
(POLICE SERVICES)
RECOMMENDATION: It is recommended that the City Council:
1) Authorize the Director of Police Services to enter into a two-year lease agreement with Flock Group Inc. for 11 additional fixed Automated License Plate Reader (ALPR) cameras in an amount not-to-exceed $67,650 over two years; and 2) Approve the use of existing funds within the FY24/25 adopted budget, Contract Patrol-Miscellaneous Equipment Replacement account 10102215-523030 to fund year-one expenses of the two-year lease; and
March 18, 2025: City Council Meeting Page 8 of 9
3) Take such additional, related, action that may be desirable.

18. CATCH BASIN INSERT INSTALLATION PROJECT – AWARD OF CONTRACT TO G2 CONSTRUCTION, INC. (PUBLIC WORKS)
RECOMMENDATION: It is recommended that the City Council:
1) Award a cooperative purchase contract to G2 Construction, Inc. of Santa Ana, CA in the amount of $1,471,830 for the installation of trash and debris capture devices in approximately 700 storm drain catch basins located in the City of Santa Fe Springs in accordance with Santa Fe Springs Municipal Code §34.18; and 2) Authorize the City Manager to execute the agreement with G2 Construction, Inc.; and
3) Appropriate $1,471,830 of Measure W funds earmarked for trash and debris capture device installation; and
4) Take such additional, related, action that may be desirable.

19. ON-CALL PROFESSIONAL ENGINEERING SERVICES – AUTHORIZATION TO

ADVERTISE REQUEST FOR PROPOSALS (PUBLIC WORKS)
RECOMMENDATION: It is recommended that the City Council:
1) Authorize the City Engineer to Advertise a Request for Proposals to Provide OnCall Professional Engineering Services; and 2) Approve Amendment No. 1 to the On-Call Professional Engineering Services Contract Agreements with Southstar Engineering and Consulting, Inc.; JMDiaz, Inc.; NV5, Inc.; and RMA International Landscape Architecture providing a 1-year term extension and revising the expiration date to April 6, 2026; and 3) Authorize the City Manager to execute the amendment with each of the consultant firms; and
4) Take such additional, related, action that may be desirable.

20. ADOPTION TO JOINT POWER AUTHORITY (JPA) AGREEMENT MEETING DATE

AND REPLACING SUCCESSOR AGENCY WITH HOUSING AUTHORITY IN JPA (FINANCE)
RECOMMENDATION: It is recommended that the City Council and the Governing Board of the Housing Authority:
1) Adopt Resolutions Nos. 9953 & 9955 approving the Amendment to the City of Santa Fe Springs Joint Exercise Powers Agreement.

March 18, 2025: City Council Meeting Page 9 of 9
RECOMMENDATION: It is recommended that the Board of Directors of the Santa Fe Springs Public Financing Authority:
2) Adopt Resolution No. 9954 to amend bylaws regarding regular meeting schedule.

21. AUTHORIZE THE PURCHASE OF FIVE (5) POLICE VEHICLES
(FINANCE/POLICE SERVICES)
RECOMMENDATION: It is recommended that the City Council:
1) Authorize issuing a purchase order to Sunrise Ford to purchase two (2) Ford F150 police responder vehicles in the amount of $162,908; and 2) Authorize issuing a purchase order to National Auto Fleet Group to purchase two (2) Ford F-150s and one (1) Ford Ranger in the amount of $162,679; and 3) Authorize the City Manager to establish an agreement/purchase order in an amount that shall not exceed $105,000 to acquire the items and services necessary to upfit the vehicles for field use; and
4) Authorize a contingency in the amount of $43,059 for any expenditures related to the purchase; and
5) Authorize a budget transfer from the Equipment Acquisition and Replacement Fund and Police Services – Contract Patrol in the total amount of $473,646 for the items above and services; and
6) Take such additional, related action that may be desirable.

APPOINTMENTS TO BOARDS, COMMITTEES, AND COMMISSIONS
COUNCIL COMMENTS/AB1234 COUNCIL CONFERENCE REPORTING
Council member announcements; requests for future agenda items; conference/meetings reports. Members of the City Council will provide a brief report on meetings attended at the expense of the local agency as required by Government Code Section 53232.3(d).

ADJOURNMENT
I, Fernando N. Muñoz, City Clerk for the City of Santa Fe Springs hereby certify that a copy of this agenda has been posted no less than 72 hours at the following locations; City’s website at www.santafesprings.gov; 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.

CITY OF SANTA FE SPRINGS

MEETINGS OF THE PUBLIC FINANCING AUTHORITY,

WATER UTILITY AUTHORITY, HOUSING SUCCESSOR,

SUCCESSOR AGENCY, AND CITY COUNCIL
AGENDA
TUESDAY, MARCH 18, 2025
AT 5:00 P.M.

CITY HALL COUNCIL CHAMBERS
11710 TELEGRAPH ROAD
SANTA FE SPRINGS, CA 90670

CITY COUNCIL
William K. Rounds, Mayor
Joe Angel Zamora, Mayor Pro Tem
Annette Rodriguez, Councilmember
Juanita Martin, Councilmember
John M. Mora, Councilmember

CITY MANAGER CITY ATTORNEY
René Bobadilla, P.E. Rick Olivarez

March 18, 2025: City Council Meeting Page 3 of 9

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, the general public may address the City Council on closed session items only.

1. CLOSED SESSION

2. CLOSED SESSION
CONFERENCE WITH LEGAL – ANTICIPATED LITIGATION: One Matter (Pursuant to Government Code Section 54956.9(d)(2) and 54956.9(e)(1)

CLOSED SESSION REPORT
REGULAR SESSION – BEGINNING AT 6:00 P.M.

INVOCATION

PLEDGE OF ALLEGIANCE

INTRODUCTIONS

PRESENTATIONS

3. WHITTIER POLICE DEPARTMENT CRIME STATISTICS REPORT
(POLICE SERVICES)

CHANGES TO AGENDA

STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST

PUBLIC HEARING

4. ORDINANCE NO. 1155 – AMEND SECTION 155.519 (INTERSTATE 605 CORRIDOR ELECTRONIC BILLBOARD SIGN PROGRAM) WITHIN TITLE 15 (LAND USE), CHAPTER 155 (ZONING), OF THE SANTA FE SPRINGS

MUNICIPAL CODE AND DETERMINE THAT THE ACTION IS EXEMPT UNDER

OLD BUSINESS – NONE

REGULAR BUSINESS

March 18, 2025: City Council Meeting Page 5 of 9

PUBLIC FINANCING AUTHORITY

6. MINUTES OF THE FEBRUARY 18, 2025 PUBLIC FINANCING AUTHORITY

MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the Public Financing Authority:
1) Approve the minutes as submitted.

7. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED

THROUGH THE CITY OF SANTA FE SPRINGS PUBLIC FINANCING AUTHORITY (PFA) (FINANCE)
RECOMMENDATION: It is recommended that the Public Financing Authority:
1) Receive and file the report.

WATER UTILITY AUTHORITY

8. MINUTES OF THE FEBRUARY 18, 2025 WATER UTILITY AUTHORITY

MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the Water Utility Authority:
1) Approve the minutes as submitted.

9. MONTHLY REPORT ON THE STATUS OF DEBT INSTRUMENTS ISSUED

THROUGH THE CITY OF SANTA FE SPRINGS WATER UTILITY AUTHORITY (WUA) (FINANCE)
RECOMMENDATION: It is recommended that the Water Utility Authority:
1) Receive and file the report.

HOUSING SUCCESSOR

10. MINUTES OF THE FEBRUARY 18, 2025 HOUSING SUCCESSOR MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the Housing Successor:
1) Approve the minutes as submitted.

SUCCESSOR AGENCY

CITY COUNCIL

12. MINUTES OF THE FEBRUARY 18, 2025 CITY COUNCIL MEETINGS (CITY CLERK)
RECOMMENDATION: It is recommended that the City Council:
1) Approve the minutes as submitted.

13. SECOND READING OF ORDINANCE NO. 1158 – AMENDING TITLE III (ADMINISTRATION) TO ADD NEW CHAPTER 41 (ELECTRONIC RECORDS AND

SIGNATURES) TO THE SANTA FE SPRINGS MUNICIPAL CODE AND

DETERMINE THAT THE ACTION IS EXEMPT UNDER CEQA (CITY CLERK) RECOMMENDATION: It is recommended that the City Council:
1) Adopt Ordinance No. 1158:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA FE

SPRINGS, CALIFORNIA, AMENDING TITLE III (ADMINISTRATION) OF THE SANTA FE SPRINGS MUNICIPAL CODE (“SFSMC”) BY ADDING A NEW CHAPTER 41 (ELECTRONIC RECORDS AND SIGNATURES) TO ESTABLISH

A POLICY FOR THE USE OF ELECTRONIC RECORDS AND ELECTRONIC OR

DIGITAL SIGNATURES
2) Take such additional, related action that may be desirable.

16. CALIFORNIA STATE LIBRARY GRANT AWARD FOR LUNCH AT THE LIBRARY

17. AUTHORIZE THE TWO-YEAR LEASE OF 11 ADDITIONAL FLOCK SAFETY

19. ON-CALL PROFESSIONAL ENGINEERING SERVICES – AUTHORIZATION TO

20. ADOPTION TO JOINT POWER AUTHORITY (JPA) AGREEMENT MEETING DATE

ITEM # 4

CITY OF SANTA FE SPRINGS

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Cuong Nguyen, Director of Community Development
Laurel Reimer, Planning Consultant
SUBJECT: ORDINANCE NO. 1155 – AMEND SECTION 155.519 (INTERSTATE 605

CORRIDOR ELECTRONIC BILLBOARD SIGN PROGRAM) WITHIN
TITLE 15 (LAND USE), CHAPTER 155 (ZONING), OF THE SANTA FE

SPRINGS MUNICIPAL CODE AND DETERMINE THAT THE ACTION IS

EXEMPT UNDER CEQA
DATE: March 18, 2025
RECOMMENDATION(S):

It is recommended that the City Council:
1) Open the Public Hearing; and
2) Receive any comments from the public wishing to speak on this matter and thereafter close the Public Hearing; and
3) Find and determine that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and
4) Introduce by title only and waive further reading of Ordinance No. 1155: An Ordinance of the City of Santa Fe Springs Municipal Code relating to electronic billboards in manufacturing zones of the Interstate 605 Corridor; and 5) Take such additional, related, action that may be desirable.

CITY COUNCIL AGENDA REPORT– MEETING OF MARCH 18, 2025
Ordinance No. 1155

Page 2 of 4 ends

FISCAL IMPACT
N/A

BACKGROUND
In November 2012, the City adopted Ordinance No. 1036 to establish regulations for the location, operation, and aesthetic standards for billboards along Interstate 5 within the Freeway Overlay Zone (FOZ). In May 2018, the City adopted Ordinance No. 1092 to include additional design and regulatory controls for billboards in the FOZ. In September 2021, the City adopted Ordinance No. 1118 to establish regulations for electronic billboards along the Interstate 605 corridor, which included standards for billboard location, operation, and design that were substantially similar to those for the FOZ. To date, seven billboards have been constructed along Interstate 5 and no billboards have been constructed along Interstate 605.

One of the location requirements for the Interstate 605 corridor restricts billboards to the M-2, Heavy Manufacturing, Zone. At the time Ordinance No. 1118 was adopted in 2021, all parcels east of the freeway and north of the railroad tracks were zoned M-2, Heavy Manufacturing:

Figure 1: Zoning Map at time of Ordinance 1118 Adoption In February 2022, the City adopted the 2040 General Plan, which was the City’s first comprehensive general plan update in over 25 years. The updated General Plan included a new land use map and six new land use designations, including “Light Industrial.” The updated land use map changed the designation for the parcels east of the freeway and CITY COUNCIL AGENDA REPORT– MEETING OF MARCH 18, 2025
Ordinance No. 1155

Page 3 of 4 ends

north of the railroad tracks from “Industrial” to “Light Industrial.” To maintain consistency between the General Plan and the Zoning Code, an updated Zoning Map was adopted by the City in September 2023. The updated zoning map re-zoned the parcels east of the freeway and north of the railroad track from “M-2, Heavy Manufacturing” to “M-1, Light Manufacturing:”
Figure 2: Current Zoning Map
The intent of the Interstate 605 billboard ordinance was to allow for billboards within the manufacturing zones along the freeway. At the time of the Interstate 605 billboard ordinance adoption, the only manufacturing zone along Interstate 605 was M-2, Heavy Manufacturing. Therefore, the only permissible zone contemplated in the ordinance was M-2, Heavy Manufacturing. The updated Zoning Map eliminated the manufacturing parcels east of the freeway from billboard eligibility by re-zoning them to M-1, Light Manufacturing. The proposed Ordinance will update the location criteria for Interstate 605 billboards to also allow them in the M-1, Light Manufacturing, Zone. Allowing billboards in the M-1 Zone has no impact on the remainder of the regulations in the Code. The numerous design and operational restrictions already included in the Interstate 605 ordinance to minimize the possible impacts billboards may have on surrounding uses will remain unaffected by the Ordinance.

ANALYSIS
The proposed Ordinance will amend the following text of Municipal Code Section 155.519 (Interstate 605 Corridor Electronic Billboard Sign Program):

CITY COUNCIL AGENDA REPORT– MEETING OF MARCH 18, 2025
Ordinance No. 1155

Page 4 of 4 ends

ITEM STATUS:

APPROVED:

DENIED:

TABLED:

DIRECTION GIVEN:
(E)Permitted Use in the Manufacturing Zones M-2 Zone. Subject to the limitations of this Section, and notwithstanding the provisions of any other Section of the zoning ordinance, electronic billboards shall be a permitted use in the M-1 and M-2 zones along the 605 corridor.

ENVIRONMENTAL
This Ordinance is exempt from CEQA pursuant to the common sense CEQA exemption (CEQA Guidelines Section 15061(b)(3)) which provides that CEQA applies only to projects which have the potential to have a “significant effect on the environment,” as defined in Public Resources Code Section 21068 and in CEQA Guidelines Section 15382.

The amendments to the City’s Municipal Code will not have a significant effect on the environment.

SUMMARY
Staff is recommending that the City Council approve and adopt Ordinance No. 1155 to effectuate the proposed amendments to the text of the City’s Municipal Code and determine that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

ATTACHMENT(S):

A. Ordinance No. 1155
a. Exhibit A – Amendments to Chapter 155 (Zoning) of Title 15 (Land Use) of the Municipal Code of Santa Fe Springs
ORDINANCE NO. 1155

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA FE SPRINGS AMENDING SECTION 155.519
(INTERSTATE 605 CORRIDOR ELECTRONIC BILLBOARD SIGN
PROGRAM) WITHIN TITLE 15 (LAND USE), CHAPTER 155
(ZONING), OF THE SANTA FE SPRINGS MUNICIPAL CODE
WHEREAS, On January 27, 2025, the Planning Commission of the City of Santa Fe Springs conducted a duly noticed public hearing and adopted Resolution 279-2025 recommending that the City Council adopt Ordinance No. 1155 to amend Section 155.519 within Title 15 (Land Use), Chapter 155 (Zoning), of the Santa Fe Springs Municipal Code; and
WHEREAS, On March 18, 2025, the City Council of the City of Santa Fe Springs considered this Ordinance, the staff report, and all testimony, written and spoken, at a duly noticed public hearing; and
WHEREAS, the Zoning Code Amendment meets the requirements as contained in Planning and Zoning Law (Government Code sections 65800-65912); and WHEREAS, the Zoning Code Amendment has been prepared and will be adopted in accordance with the requirements of Planning and Zoning Law (Government Code sections 65850-65860).

NOW THEREFORE, the City Council of the City of Santa Fe Springs does ordain as follows:

SECTION 1. The Zoning Code Amendment is exempt from CEQA because it falls within the common sense exemption, pursuant to CEQA Guidelines Section 15061(b)(3), which indicates that CEQA only applies to projects that have a “significant effect on the environment” as defined in Public Resources Code Section 21068 and CEQA Guidelines Section 15382 as a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project. Adopting the Zoning Code Amendment would not be an activity with the potential to cause a significant effect on the environment, and therefore is exempt from CEQA. Consequently, no other environmental documents are required by law.

SECTION 2. The Zoning Code Amendment is consistent with the following Santa Fe Springs General Plan Goals and Policies:

1. Policy LU-1.6 – Community Benefits. Ensure that new development(s) provide a net community benefit and pay their fair share of fiscal impacts on infrastructure and services.

2. Policy ED-4.5 – Targeted Economic Incentives. Assess the value of alternative incentive concepts and programs for specific business types, in relation to what competing cities within the region are doing, along with a thoughtful assessment of the actual overall competitive strength of the community.

Billboard developments are fiscally positive for the City. Billboard developers are required to enter into an operating agreement with the City and revenue received through the billboard operating agreement helps fund municipal services. The operating agreement is required to include compensation to the City, the utilization of the billboard for City messages of community interest, and the utilization of the billboard to display emergency alerts, such as Amber Alert messages and emergency-disaster communications.

SECTION 3. Chapter 155 (Zoning) of Title 15 (Land Use) of the Santa Fe Springs Municipal Code is hereby amended as provided in Exhibit “A” attached hereto and incorporated herein by reference.

SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase in this Ordinance, or any part thereof, is held invalid or unconstitutional, such decision shall not affect the validity of the remaining sections or portions of this Ordinance or of Chapter 155, or any part thereof. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase in this Ordinance irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases may be declared invalid or unconstitutional.

SECTION 5. The City Clerk shall certify the passage and adoption of this ordinance and shall cause the same to be published in the same manner required by law. This Ordinance shall become effective thirty (30) days from and after its passage.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Santa Fe Springs at a regular meeting on this 1st day of April 2025. ________________________
ATTEST: William K. Rounds, Mayor
_____________________________
Fernando Muñoz, City Clerk
APPROVED AS TO FORM:
____________________________
Rick R. Olivarez, City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.

CITY OF SANTA FE SPRINGS )
I, Fernando Muñoz, City Clerk of the City of Santa Fe Springs, do hereby certify that the foregoing Urgency Ordinance was adopted at a regular meeting of the City Council held on the 1
st day of April 2025, and was carried by the following roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_________________________
Fernando Muñoz, City Clerk
Exhibit A – Amendments to Chapter 155 (Zoning) of Title 15 (Land Use) of the Santa Fe Springs Municipal Code
Exhibit A – Zoning Code Amendment
Amendments to Chapter 155 (Zoning) of Title 15 (Land Use) of the Municipal Code of Santa Fe Springs
Key:

Normal Text = Existing unmodified Code language
Strikethrough Text = Proposed language to be removed from the existing Code Underline Text = Proposed language to be added to the Code Code of Ordinances of the City of Santa Fe Springs Chapter 155, Section 155.519 (Interstate 605 Corridor Electronic Billboard Sign Program) is hereby amended as follows:
§ 155.519 INTERSTATE 605 CORRIDOR ELECTRONIC BILLBOARD SIGN PROGRAM.
(E) Permitted use in the M-2 Manufacturing zones. Subject to the limitations of this Section, and notwithstanding the provisions of any other Section of the zoning ordinance, electronic billboards shall be a permitted use in the M-1 and M-2 zones along the 605 corridor.

ITEM # 5

CITY OF SANTA FE SPRINGS

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
BY: Lana Dich, Director of Finance & Administrative Services SUBJECT: FISCAL YEAR (FY) 2023-24 YEAR-END REVIEW AND PRESENTATION OF THE CITY’S ANNUAL COMPREHENSIVE FINANCIAL REPORT
(ACFR)
DATE: March 18, 2025
RECOMMENDATION(S):

It is recommended that the City Council:
1) Receive and file the City’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year (FY) ending June 20, 2024, and related communications.

FISCAL IMPACT
Presentation of ACFR does not have fiscal impact.

Overall on a cash basis, the City’s General Fund Unassigned Reserve balance increased approximately $16 million from $34 million at June 30, 2023 to $50 million at June 30, 2024.

In the Water Fund, the Unrestricted Net Assets increased by approximately $2.6 million from $5.7 million at June 30, 2022 to $8.3 million at June 30, 2024.

BACKGROUND
Each year, the City engages an independent financial auditor to audit the City’s financial statements, known as the 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.

CITY COUNCIL AGENDA REPORT – MEETING OF March 18, 2025
Fiscal Year (FY) 2023-24 Year-End Review and Presentation of the City’s Annual Comprehensive Financial Report (ACFR)

Page 2 of 7 ends

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. The ACFR, including Independent Auditors’ Opinion, are included here as attachment A.

As required by GAGAS, CLA has also issued a Report on Internal Control and Compliance and an Audit Communication Letter summarizing the results of the audit.

These reports, included here as attachment B and C, are used to communicate certain matters to the City Council. The audit did not identify any material weaknesses or significant deficiencies in internal controls.

As part of the City’s annual fiscal year-end procedures, staff compiles a summary of the City’s actual General Fund and Water Fund revenues and operating expenditures compared to the adjusted budget. The summary is instrumental in helping staff assess prior year expenditures and current financial trends to incorporate the information into future budget estimates and to assess the City’s current financial position.

ANALYSIS
Actual vs. Budget Information
Attached are revenue and expenditure summaries illustrating comparisons between budgeted and actual figures. Although the City’s operations in FY 2024-25 were, in part, influenced by the pandemic and its effect on the national economy, the City was fortunate, from a financial perspective, given that the Sales Tax base was relatively unaffected. The Sales Tax generated in FY 2023-24 of $40.5 million, the highest ever in the City’s history, surpassed the prior year amount of $4.2 million. The Sales Tax revenue/growth is critical to the City’s finances as it represents over half of all General Fund revenues.

This is also the fourth full year of collecting the voter-approved Transactions & Use Tax (Measure Y) and its trend continues to be very favorable for the City. Measure Y has alleviated some of the financial burdens that have threatened our strong financial position.

Even during the global pandemic, Measure Y was a consistent and reliable stream of revenue for the City. The Sales Tax and Measure Y combined represent approximately fifty-five (55%) of General Fund revenues.

Additionally, across the General Fund, the actual year-end financial information is favorable for both revenues and expenditures. Revenues, in general, are higher than anticipated by 13.8% and expenditures are less than budgeted amounts by 9.6%. The influx in additional revenue, coupled with significant savings from operating costs across CITY COUNCIL AGENDA REPORT – MEETING OF March 18, 2025
Fiscal Year (FY) 2023-24 Year-End Review and Presentation of the City’s Annual Comprehensive Financial Report (ACFR)

Page 3 of 7 ends

departments has created an operating surplus of approximately $16 million for FY 2023-

24. The revenues in the Water Fund were on pace with budget and expenditures were 10.3% under budget. The actual revenues were $17.0 million and actual expenditures were $15.4 million, which resulted in an increase in available fund balance of $1.6 million.

However, the revenues amount also reflect $4 million of outstanding water bills that have not been collected as of June 30, 2024.

GENERAL FUND
Overall, General Fund revenues were approximately $13.2 million or 13.8% higher than anticipated at $109 million. This high variance is primarily due to the Sales Tax, the Transactions and Use Tax (Measure Y), the Utility Users Tax (UUT), Franchise Tax, and the Property Tax, all of which exceeded budget estimates by 3.7% to 31.4%. Additionally, the revenue of $109 million reflects approximately $7.3 million of investment earnings due to market recovery in the City’s investment portfolio.

Sales Taxes reached an all-time high for FY 2023-24 coming in at $40.4 million and 3.7% over budget. Part of the revenue growth is related to a sales tax sharing agreement entered into with the City of Vernon regarding tax generated by a business located in both cities. While the agreement provides a healthy boost to sales tax, the City still experienced significant growth within the existing sales tax base. Measure Y also finished the year 6.5% over budget at $17.3 million, a record level for the five-year old tax.

Property Taxes generated during FY 2023-24 totaled $6.3 million, which is $1.2 million over the anticipated amount. Approximately $3.0 million of the $6.2 million received was from Property Tax allotments and $3.2 million were from Residual Property Tax (former Redevelopment Agency). Increases to both sources was a direct result of higher assessed valuation throughout the City.

The UUT came in at 17.7% over budget expectations at $8.8 million. The UUT was a revenue that staff was closely monitoring given that there was a downward trend observed for the UUT. A year-over-year comparison, the UUT decreased by approximately $147,000 over the previous year. Staff will continue to monitor and adjust figures as appropriate.

Franchise Tax and Motor Vehicle in Lieu Tax exceeded budget expectations by 31.4% and 5.4%, respectively. The Other Taxes category is at the budget. This is primarily due to changes in the ownership structure of the City’s largest oil producer which has caused the City’s Barrel Tax to fall significantly.

In the Use of Money, Property, & Other Category, revenues of approximately $10.1 million were received for items such as Interest, Development and Green Waste Host Fees, CITY COUNCIL AGENDA REPORT – MEETING OF March 18, 2025
Fiscal Year (FY) 2023-24 Year-End Review and Presentation of the City’s Annual Comprehensive Financial Report (ACFR)

Page 4 of 7 ends

Ground Leases and other rental income, and the Water Utility lease payment. The Use of Money, Property, & Other Category revenues were approximately 68.8% higher than anticipated, mainly due to investment earnings in the City’s investment portfolio.

Operating Expenditures
Overall, in the General Fund, operating department expenditures totaled $81.1 million, providing a savings of approximately $8.6 million or 9.6% compared to the adjusted midyear budget figures. Although there were customary actual-to-budget departmental fluctuations, all departments realized savings primarily through vacancies and operational savings.

The Fire-Rescue Department realized a saving of $1.2 million due to unused nonrecurring expenses. However, without the non-recurring budget, the Fire Department was overbudget by approximately $499,000 due to an increase in full-time overtime hours.

The Community Services department realized approximately $571,000 in savings, while the Public Works and Police Departments generated $2.6 million and $2.0 million in savings when compared to the midyear budget, respectively. Community Development achieved $887,000 in savings while the Finance and General Government Departments generated approximately $224,000 and 721,000 in savings, respectively.

Summary
Below is a summary comparing the General Fund’s budgeted vs. actual year-end figures followed by a discussion of potential uses of the available balance.

At this time, staff is not recommending any specific action regarding the year-end surplus.

Further direction from the City Council will be necessary to determine how the available fund balance can be utilized to support the City’s goals and objectives.

WATER FUND
Revenues
Adjusted Budget Actual
Revenues $ 95,983,300 $ 109,198,384
Expenditures
Operating Expenditures (89,728,400) (81,118,462)
Vehicles/Transfers/Non-Recurring (4,506,200) (11,256,200) Total Expenditures (Uses) (94,234,600) (92,374,662)
Net Increase in Available Fund Balance $ 1,748,700 $ 16,823,722 CITY COUNCIL AGENDA REPORT – MEETING OF March 18, 2025
Fiscal Year (FY) 2023-24 Year-End Review and Presentation of the City’s Annual Comprehensive Financial Report (ACFR)

Page 5 of 7 ends

In the Water Fund, total revenues received were on pace with budget amount by approximately. Metered water sales were under budget by approximately $1,751,000 or

4.4%. Interest earnings came in $717,000 greater than anticipated (1204%). Other revenues were $89,000 over budget primarily due to trunk line connections, and temporary meter fees.

Operating Expenditures
Similar to the General Fund, the Water Fund experienced overall expenditure savings of $1.8 million or 10.3% in the operating activities. Labor and operational savings were realized in all of the budget activities. The greatest savings were in the Water Purchases activity came in below budget by approximately $1.1 million or 13.8%. An additional $131,000 in Production Facilities Maintenance activities.

Summary
The Water Fund’s budgeted vs. actual year-end figures are summarized in the table below:

Water Fund Balance
As of June 30, 2024, the outstanding water billing balance is significantly higher compared to the previous year, primarily due to a system outage and staff being unable to process bills. The collectability of these balances is currently uncertain. Once the new system is fully implemented, staff will present a true-up of the balance for Council's consideration

ENVIRONMENTAL
NA
Adjusted Budget Actual
Revenues $ 16,966,100 $ 16,966,926
Expenditures
Operating Expenditures (16,935,800) (15,185,448)
Transfer to Water CIP - (183,521)
Total Expenditures (Uses) (16,935,800) (15,368,969)
Net Increase in Available Fund Balance $ 30,300 $ 1,597,957 Outstanding Billings - (3,956,600)
Decrease in Available Fund Balance $ 30,300 $ (2,358,643) CITY COUNCIL AGENDA REPORT – MEETING OF March 18, 2025
Fiscal Year (FY) 2023-24 Year-End Review and Presentation of the City’s Annual Comprehensive Financial Report (ACFR)

Page 6 of 7 ends

DISCUSSION
Both the City’s General Fund experienced positive results for FY 2023-24 despite the despite the uncertainty of the current stage of the economy. General funds is reporting increases in available fund balances and the Sales Tax and Measure Y provided a significant increase to the City’s revenue base. While the enterprise is experiencing an uncertainty. There are a number of issues to call to the City Council’s attention as we look to the future:
• Current Geopolitical Climate – The invasion of Ukraine by Russia presents an undeniable level of uncertainty in the economy. As with any conflict, there are lasting and spillover effects on the national and local economy that can linger for years to come.
• CalPERS Unfunded Liability and Normal Costs contributions – These are expected to increase over the next five years. These projections are based on actuarial report from June 30, 2022 and will be adjusted each year based on actual results experienced by CalPERS. In addition, and perhaps more significantly, if investment performance does not meet expectations, the rates could escalate even higher, which can occur given the current economic environment. The CalPERS contributions affect both the General Fund and Water Fund. • Infrastructure funding - While there are funds and accounts that have been established by the City Council, the City will be challenged to provide an increased level of funding to address significant deferred maintenance needs moving forward.
• Rising inflation – Inflation can also jeopardize the City’s favorable financial position as it is directly tied to the rising cost of acquiring items and services necessary to deliver local programs and services
The City is particularly sensitive to changes in the economy. The City’s reliance on sales tax makes the City susceptible to economic downturns faster than other agencies which rely on revenue sources such as property taxes.

Additionally, the City’s industrial business-to-business sales tax base also causes the City’s sales tax to behave differently than regional and statewide trends, making predicting sales tax more challenging.
• Sales tax new proposal - Proposals also continue to be brought forward to modify the state’s allocation methodology for sales tax revenues, primarily concerning online sales transactions. Most proposals would result in a reduction of sales tax for Santa Fe Springs. The City continues to be actively involved in these discussions and argues against proposals that would negatively impact the City; however, it is a continuing threat which must be acknowledged.

CITY COUNCIL AGENDA REPORT – MEETING OF March 18, 2025
Fiscal Year (FY) 2023-24 Year-End Review and Presentation of the City’s Annual Comprehensive Financial Report (ACFR)

Page 7 of 7 ends

Under the current fiscal environment, revenues are expected to exceed expenditures over the next couple of years, but this structural surplus is expected to decrease each year given the negotiated salary increases, new positons added to the organization and other increases in operating costs. As such, staff will continue to pursue internal operating efficiencies and strategies to minimize costs and impacts to City services while exploring new and innovative revenue ideas. Staff will continue to work with the City Council to explore not only new revenue options but cost containment strategies as well.

SUMMARY/NEXT STEPS
The recommended items have been incorporated in the assigned fund balance. Staff will incorporate any further direction and input provided by the City Council.

ATTACHMENT(S):

A. Final audited FY 2023-24 Annual Comprehensive Financial Report B. Report of Internal Controls and Compliance
C. Audit Communication Letter
D. General Fund FY 2023-24 Budget to Actual Summary
E. Water Fund FY 2023-24 Budget to Actual Summary
ITEM STATUS:

APPROVED:

DENIED:

TABLED:

DIRECTION GIVEN:

Annual Comprehensive
Financial Report
City of Santa Fe Springs, CA
Year Ended June 30, 2024
City Council
William K. Rounds, Mayor
Joe Angel Zamora, Mayor Pro-Tem
Annette Rodriguez, Councilmember
Juanita Martin, Councilmember
John M. Mora, Councilmember
Planning Commission Traffic Commission
Isabel Cervantes Blake Carter
David Ayala Felix Miranda
Joseph Flores Johana Coca
Gabriel Jimenez Sally Gaitan
Jay Sarno

Executive Management Team Prepared by:

René Bobadilla, City Manager Lana Dich, Director of Finance Nicholas Razo, Assistant City Manager Rachel Gutierrez, Assist. Dir. of Fin.

Rick Olivarez, City Attorney Rachelle Daaca, Senior Accountant Lana Dich, Director of Finance Jaime de Guzman, Principal Accountant Maricela Balderas, Dir. of Com. Services Erlinda Gutierrez, Accountant Chad A. Van Meeteren, Fire Chief
Cuong H. Nguyen, Dir. of Comm. Dev.

James Enriquez, Director of Public Works
Arlene Salazar, Director of Police Services

CITY OF SANTA FE SPRINGS

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

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

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 Fiduciary Net Position 26
Statement of Changes in Fiduciary Net Position 27
Notes to Basic Financial Statements 29

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Budgetary Comparison Schedule—General Fund 78
Budgetary Comparison Schedule—Low and Moderate Income Housing Assets Fund 79
Schedule of Changes in Net Pension Liability and Related Ratios — Miscellaneous Plan — Agent Multiple-Employer Plan 80
Schedule of Contributions—Miscellaneous Plan—Agent Multiple-Employer Plan 82
Schedule of Proportionate Share of the Net Pension Liability—Cost Sharing Safety Plan 84

CITY OF SANTA FE SPRINGS

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
Schedule of Contributions—Cost Sharing Safety Plan 86
Schedule of Changes in the Net OPEB Liability and Related Ratios 88 Schedule of Contributions—OPEB 90
Notes to Required Supplementary Information 92

SUPPLEMENTARY INFORMATION
Combining Balance Sheet—Nonmajor Governmental Funds 96
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances—Nonmajor Governmental Funds 100
Budgetary Comparison Schedules—Special Revenue Funds 104 State Gas Tax 104
County Transit Tax 105
Street Lighting Maintenance District 106
Art in Public Places 107
Air Quality Improvement 108
Community Development Block Grant 109
Public Safety Augmentation 110
Supplemental Law Enforcement Services 111
Measure W 112
Combining Statement of Fiduciary Net Position—Custodial Funds 114 Combining Statement of Changes in Fiduciary Net Position—Custodial Funds 115

STATISTICAL SECTION (UNAUDITED)
Net Position by Component 118
Changes in Net Position 120
Fund Balances of Governmental Funds 124
Changes in Fund Balances of Governmental Funds 126
Assessed and Estimated Actual Value of Taxable Property 128 Direct and Overlapping Property Tax Rates 129
Principal Property Tax Payers 130
Property Tax Levies and Collections 131
Ratios of Outstanding Debt by Type 132
Ratio of General Bonded Debt Outstanding 133
Direct and Overlapping Debt 134
Legal Debt Margin Information 135
Pledged-Revenue Coverage 138

CITY OF SANTA FE SPRINGS

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
Demographic and Economic Statistics 140
Principal Employers 141
Full-Time and Part-Time City Employees by Function 142
Operating Indicators by Function 143
Capital Asset Statistics by Function 144
(This page intentionally left blank)
William K. Rounds, Mayor • Joe Angel Zamora, Mayor Pro Tem City Council
Annette Rodriguez • Juanita Martin • John Mora
City Manager
René Bobadilla, PE, City Manager
March 10, 2025
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.
(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:
 The safeguarding of assets against loss from unauthorized use or disposition; and
 The 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 9 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 100,000.

The City of Santa Fe Springs operates as a general law city under the councilmanager 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 taxes, transaction and use taxes, and utility user’s taxes ሺUUTሻ 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 2021-22 was the highest the City had ever generated, the sales tax generated in FY 2022-23 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 fourth 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.

At the end of 2024, the City voters approved Parcel Tax ሺMeasure SFSሻ. This is a dedicated source to provide funding for roads/streets. The Measure SFS is expected to generate $6 million per year, for 25 years, beginning in FY 2025-26.

This amount generated will increase by 2% per year thereafter.

Local Economic
Outlook
(v)
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.

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 comprises 57 members working from four fire stations providing traditional fire suppression services, hazardous materials response, fire prevention, and emergency medical services, and 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 Accomplishments
& Outlook
Vision, Mission,
and Guiding
Values
(vi)
“one-stop-shop” for administering all the City's hazardous materials, hazardous waste, and tank programs. 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. In FY 2023- 2024, the Environmental and Prevention Divisions performed over 2500 permit inspections of new and existing facilities. Fire Suppression personnel have a business-friendly fire inspection program to annually inspect each business in the City to identify possible fire and life safety issues and update emergency contact information in the department’s database. The Department of Fire Rescue conducted over 3200 business and residential inspections and responded to over 4,000 emergency calls in FY 2023-24.

The Department of Fire Rescue currently staffs a State certified Regional Urban Search and Rescue Team ሺUS&Rሻ designated at the highest level as a “Heavy” rescue team by the Office of Emergency Services ሺOESሻ. Fire-Rescue also staffs a State certified 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 2023-2024, the Department of Fire-Rescue assisted outside their jurisdiction six times to significant fire incidents. The City was reimbursed over $182,000 in backfill expenses for labor and equipment to respond to these incidents.

In partnership with Rio Hondo College, the department 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 to assist 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 2023-2024, the Fire-Rescue Department secured $1,055,480 through the 2022 State of Homeland Security Grant Program ሺSHSGPሻ and the Assistance to Firefighters Grant Program ሺAFGPሻ. This funding supports the purchase of equipment and training for the Homeland Regional Training Center, the City’s Accomplishments
& Outlook ሺcont.ሻ
(vii)
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.

Department of Police Services
The Department of Police Services is responsible for the management of all law enforcement services in the city. The Santa Fe Springs Policing Team is comprised of City administrative personnel, Public Safety Officers, Code Enforcement Inspectors, and Whittier Police Department (WPD) sworn personnel committed to community safety by developing effective strategies and maintaining collaborative partnerships to address quality of life issues.

Additionally, Police Services oversees animal licensing services and process regulatory permits such as catering food truck, soliciting, sidewalk vending, alcohol sales conditional use, and entertainment conditional use permits.

During FY 2023-2024, the department 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 enhance 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 reduce crime and maintain the safety and wellbeing of all citizens within the community. Some of the Department efforts and accomplishments included:
 Whittier Police Department Officers responded to 17,777 calls for service throughout the city. Additionally, Police officers also responded to several incidents involving Driving Under the Influence (DUI) offenses resulting in arrests and 34 citations were processed for cost recovery.  WPD partnered with LA County District Attorney Investigators Community Violence Reduction Team (CVRT) to conduct sweeps, targeting violent suspects and gang enforcement operations to address violators who jeopardize the safety of the community. This team allows WPD to be a force multiplier in addressing several locations throughout the city. 30 parole/probation compliance searches were conducted in Santa Fe Springs and surrounding communities affecting public safety and quality of life issues.
 Officers conducted 9 large homeless encampment cleanups at various locations throughout the city including Coyote Creek, Santa Fe Springs Road, and various rail lines that run through the City of Santa Fe Springs. Cleanups required partnering with the Los Angeles County Department’s HOST Team, LA County Department of Public Works, Union Pacific Railroad and Burlington Northern Santa Fe Railroad.

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 In January 2024, Officers received comprehensive refresher training in Rapid Response protocols to active shooter situations such as school and workplace violence scenarios. Officers were given a scenario and responded as a team to mitigate the problem. In addition, Officers received less lethal and de-escalation training in April 2024. This included the acquisition of new less lethal equipment for officers to utilize in field operations.  In July 2023, Body Worn Cameras were deployed and issued to all officers in Santa Fe Springs.
 WPD Special Enforcement Team (SET) conducted several narcotics investigations. These efforts have resulted in the seizure of 2 pounds of methamphetamine, over 1,000 fentanyl pills and 5 pounds of cocaine.  SET investigated a commercial business operating an illegal marijuana grow which resulted in the destruction of over 800 marijuana plants  In effort to increase traffic safety, the department focused on traffic enforcement operations and proactive traffic overtime enforcement.

Approximately, 989 citations were issued at citywide problematic locations for hazardous violations such as distracted driving, unsafe speed, disobeying signage, red light violations and unsafe movements.
 The department entered into an agreement with the California Highway Patrol Santa Fe Springs station to provide supplemental traffic enforcement.  New solar-powered surveillance cameras were installed in select residential locations to help deter criminal activity and enhance neighborhood safety and security.
 Approximately, 23 homeowners have taken advantage of the opportunity to enhance security at their homes through the Home Security Camera Rebate Program. The program offers residents a rebate for the purchase and installation of a security camera device at their residence.  The department continued to subscribe to Crimereports.com, providing citizens with access to up-to date city crime statistics.

Public Safety Program:

Public Safety Officers (PSO’s) provide citywide support and perform a variety of public safety and law enforcement functions and serve as a liaison between law enforcement and the community. PSO’s work seven days a week to enhance the quality of life and increase the safety and well-being of citizens who live, work and visit Santa Fe Springs. Their duties include but are not limited to responding to non-emergent/non-hazardous calls for service, preparing criminal/noncriminal police reports, documenting traffic collisions, and enforcing parking violations. PSO’s provide vital support to police officers by responding to nonemergent calls for services and addressing quality of life concerns, which allow Accomplishments
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sworn police officers to remain free to respond to emergent/priority calls for service.
 Public Safety Officers (PSO’s) played a critical role in the department’s field operations. PSO’s responded to approximately 3,258 calls for service and provided 4,572 pro-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 5,261 parking citations were issued.  PSO’s responded to 697 traffic collision related incidents, allowing sworn personnel to remain available to respond to emergent calls for service and reducing overall response times for priority calls.
 PSO’s prepared 1,268 criminal/non-criminal and traffic collision reports.  PSO’s issued 285 parking warnings to vehicles in violation of 72-hour parking.
 PSO’s issued 156 Notice of Violations for illegal street vending activity.  PSO’s completed over 488 hours of officer safety training which included Officer Safety, Bike Patrol, PC832 Laws of Arrest, Supervisory Skills, Assertive Supervision, Maximizing Performance through documentation and Harassment Training.
 Enhancing community partnerships by improving community relations was also a key area of focus. The department held events such as Coffee with a Cop, Sweets & treats with Santa, Trick-or-Treat at the Police Services Center, and hosted information booths at community and City special events.

Additionally, PSO’s and WPD personnel visited elementary schools and participated in Read Across America, which aims to celebrate reading across the county.
 The department partnered with numerous law enforcement agencies, nonprofit organizations and City departments to host National Night Out (NNO).

The event aims to strengthen community-police partnerships and build neighborhood camaraderie, essential in keeping our community safe. NNO included police and fire vehicle displays and community information booths.  The Bike Patrol Program continued throughout the city. Public Safety Officers provided pro-active patrol on bicycles in residential neighborhoods, City facilities, and parks to improve citizen engagement and ensure a safe community.
 Three Community Block Parties were also held to bring community members together to get to know their neighbors and policing team in a relaxed environment.

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Animal Licensing Program & Regulatory Permits:
 During FY 2023-2024, 1,326 dog licenses were processed.  The Department partnered with the Southeast Area Animal Control Authority (SEAACA) to host the annual Low-Cost Pet Vaccination Clinic. 86 animals were licensed, 209 received vaccinations and 19 pets were microchipped.
 Administrative staff issued 14 regulatory permits for catering food truck operations and two special events permits.
 A total of 193 yard sale permits were issued during FY 2023-2024.

Code Enforcement Program:

Code Enforcement is another significant component of the Department of Police Services that is responsible for enforcing Santa Fe Springs Municipal codes related to residential and business property maintenance standards, illegal business operations, land use and unpermitted construction. Code Enforcement Inspectors also enforce building code violations, zoning violations, 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 2023-2024 included, but was not limited to:
 281 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.  Coordinated outreach and partnered with outside agencies to remove homeless encampments located on City property, Burlington Northern Santa Fe Railroad, Union Pacific Railroad, LA County Public Works, Caltrans and private properties. The team coordinated with these agencies and business owners to assist with several homeless encampment cleanups. Although some of these homeless encampments were located on outside agency property, they ran through the Santa Fe Springs jurisdiction and negatively impacted the residential and business community.
 Over 181 contacts were made with individuals experiencing homelessness.  Code Enforcement Inspectors conducted 1,168 residential and commercial inspections and 671 follow-ups in an effort to get properties into compliance.
 Inspectors also issued 296 Notice of Violations, and 207 Administrative Citations were issued by Code Enforcement and Public Safety Officers for various code violations.

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 Code Enforcement staff also remained dedicated to participating in ongoing training. Inspectors participated in over 39 hours of code enforcement continued education and officer safety trainings.
 Code Enforcement staff processed 6 Alcohol Sales Conditional Use Permits (ASCUP) and 8 ASCUP Compliance Reviews.
 Staff also continued to work closely with the Community Development Department to identify potential impacts and mitigate hazards of new and existing developments by developing conditions of approval to ensure safety and minimize negative impacts to the community.
 In February 2024, a Senior Code Enforcement Inspector position was added to the team. This position provides direct supervision to Code Enforcement Inspectors and performs technical office and field work.  In June 2024, Thomson Reuters CLEAR investigative software was added to assist Code Enforcement staff identify responsible parties. CLEAR software is a valuable resource which makes Code Enforcement more effective and efficient by providing the most accurate information.

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, 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 2023-2024, the Engineering Division issued approximately 300 total excavation and construction permits.

During FY 2023-2024, the Department of Public Works coordinated a multitude of capital improvement projects including:

Facility Improvements
 Town Center Hall Storage Cabinets at the Social Hall
 Police Service Center Main Entrance Improvements ሺSky-Lightሻ  City Hall Roof Replacement
 Police Services Staging Roof Replacement
 Clarke Estate Parking Lot Improvements
 Traffic Signal Administration Roof Replacement

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 City Clerk's Office Improvements
 EV Charge Stations North City Hall Parking Lot
Park Improvements
 Los Nietos Park North Baseball Field Fencing Improvements  Heritage Park Trellis/Pergola Rehabilitation
 Los Nietos Park North Baseball Field Fencing Improvements Phase II - Hood Netting
 Install WIFI at City Hall
Street Improvements
 Stop Sign Installations at Orr and Day Road at Whiteland Street  Street Rehabilitation on Residential Streets South of Florence Ave  Street Rehabilitation on Longworth Avenue ሺOrr & Day Road to Harvest Avenueሻ
 Street Rehabilitation on Pioneer Frontage Road ሺClarkman Street to south endሻ
 Telegraph Rd at Carmenita Rd Intersection Improvements  Pioneer Bl at Houghton Stop Sign Study
 Median Entry Monument on Pioneer Rehabilitation
Building & Safety
Responsible for ensuring that construction and occupancy of buildings meet safety standards by managing the plan check process, issuing permits, and conducting inspections.

Building Activities during FY 2023-2024
 Total permits issued:
o 1,358 total
 665 Building Permits
 312 Electrical Permits
 149 Mechanical Permits
 157 Plumbing Permits
 66 Sewer Permits
 9 Grading Permits
 Overall project valuation of permits issued:
o $132,712,093 total
o It should be noted that the Electrical, Mechanical, Plumbing and Grading permits do not have a valuation.
 Total number of individuals assisted at the counter:
o 751 total.

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Department of Community Development
The Community Development Department provides staff support to the City Council, Planning Commission, Housing Successor, Successor Agency, and other development-related activities. The Community Development Department is responsible for the following divisions:
 Planning
o Current and Advanced (long-range) planning;
 Economic Development
o Creating, retaining, attracting, and expanding the business community; and
 Housing
o Improving the quality of our neighborhoods, providing affordable housing options, and managing and disposing of the assets of the former redevelopment agency.

The role of the department is to foster public involvement and creativity and assist decision makers and the public in formulating and implementing policies, which balance environmental, economic and social needs for the present, and future. The department is committed to playing a prominent role in shaping the community through high-quality standards citywide to preserve and cultivate smart and sustainable growth of the City’s residential, commercial, and industrial areas.

Through the regulation of land use and development, the Community Development Department 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.

Planning Division Activities during FY 2023-2024
 Total number of entitlements processed:
o Discretionary entitlements: 46 total.
o Administrative entitlements: 14 total (wireless projects)  Advanced Planning projects completed:
o Established an on-call environmental services list.
o Initiated the Surplus Land Act process for several city-owned properties. o Adopted local CEQA Guidelines.
o Adopted an Ordinance to allow Temporary Truck, Trailer, and Container storage on selective properties.
o Total number of plan checks completed: 500 total.
 Total number of Zone Certification Letters prepared:
o 18 total.
 Various miscellaneous permits processed:
o 3 Office Trailer Permits.
o 3 Home Occupation Permits.
o 7 Preliminary Application Reviews.

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 Total number of individuals assisted at the counter:
o 699 total.

Economic Development Division Activities during FY 2023-2024  Opening of a new Chick-Fil-A drive-through restaurant at 13225 Telegraph Road.
 Entitled the development of a new Raising Cane’s drive-through restaurant at 12623 Imperial Highway.
 Construction began for the Sonic’s Drive In and Dave’s Hot Chicken at the northeast corner of Laurel Avenue and Florence Avenue.
 Zoning Code revision to simplify and streamline the Alcohol Sales Conditional Use Permits process.

Housing Division Activities during FY 2023-2024
 Submitted the 5th draft of the 2021-2029 Housing Element to the California Department of Housing and Community Development (HCD) for approval.  Updated City’s ADU ordinance to comply with State’s updated ADU laws  Updated the City's Municipal Code to include provisions for SB 9 two-unit developments and urban lot splits.
 Accessory Dwelling Units (ADUs) reviewed and approved: 20 total.  SB 9 (Two-unit Development) reviewed and approved: 2 total.

Upcoming Activities
In addition to the items listed above, staff is in the beginning and intermediate stages of completing the following projects:
 Select a consultant and begin the Comprehensive Zoning Code Update.  Select a consultant and begin the Town Center Telegraph Corridor Specific Plan as part of the Caltrans Sustainable Transportation Planning Grant.  Complete the Surplus Land Act process to construct new housing and commercial opportunities with several city-owned properties.
 Completion of The Whole Child interim housing and community wellness support center.
 Completion of the Richman Group housing project.
 Begin construction of the Habitat for Humanity housing project.  Select a consultant and process entitlements for three (3) new billboards on the I605 freeway.  Complete the design and build for five (5) new single-family homes on existing city parcels.
 Complete the environmental assessment of four (4) city-owned properties as part of the Equitable Community Revitalization Grant (ECRG).  Adopt new regulations and procedures related to firework booth sales.  Implement a new Zoning Compliance Form into the business license review process to streamline the understanding of new and existing business operations.

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(xv)
Department of Community Services

The Department of Community Services includes the following Divisions: 1) Administration; 2) Library and Cultural Services (LCS); and 3) Family and Human Services (FHS). It is one of the City departments that has the most direct impact on the residents of Santa Fe Springs. Programs and services are available to City residents, visitors, and business residents. These programs and services range from social, recreational, and cultural services. During Fiscal Year 2023-2024, the Department of Community Services achieved several significant accomplishments.

The following includes a variety of program, event, and department accomplishments:
 The Community Services Department implemented several internal operational changes, including:
 Separation of Parks and Recreation (parks, sports, some special events, aquatics, teens, contract classes) operations from the Community Services Department.
 Creation of a Creative Media & Communications team under the Administration Division.
 Transfer of Transit Services from the Public Works Department to the Community Services Department.
 The Creative Media & Communications (CMC) Team formed in December 2023. The CMC Team is essential for creating a positive image, fostering community engagement, and ensuring effective communication in a way that benefits both the municipality and the community it serves. The CMC Team will help to serve the City of Santa Fe Springs in a variety of roles including, but not limited to, community engagement, public awareness, brand building, communication, crisis management, data collection, policy advocacy, enhancing public legitimacy and trust, and promotion of city services, programs, and events.
 Since its inception, the team has worked to:
 Complete a media audit to identify how to better engage the community, including Issuing a public survey that resulted in 715 responses and a better understanding of community needs.
 Produced a new monthly E-Newsletter “Be in the know of the 90670!”  Increased Social Media Followers by 19%, from 14,752 to 17,561 in just 6 months
 Obtained permission from the Federal Government to use the www.santafesprings.gov domain (transition to .gov will happen in FY24.25).

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 Initiated better internal communications with a monthly Department Liaisons meeting and routine Public Safety meetings, including SFS Fire, Creative Media & Communications, Police Services, and Whittier P.D.  Assisted with SFS Art Fest promotional efforts resulting in almost doubled attendance from the previous year’s event.
 Utilized digital platforms such as Hootsuite and Placer AI to increase efficient operations and better analyze marketing efforts. 
 The Community Services Department Administration Division hosted the annual Walk to School Day on Wednesday, October 4, 2023, and included participation from the Police Services Department and City of Norwalk Public Safety. Six elementary schools participated – Rancho Santa Gertrudes, Jersey Avenue, Cresson, Lakeview, Lakeland, and Santa Fe Springs Christian. About 500 4th and 5th-grade students, teachers, parent volunteers, and staff participated.

 The Library continued to increase its attendance numbers, services offered, and special programs in Fiscal Year 2023-24 some noteworthy accomplishments include:

 Grant Funded Programming - In FTY2023/2024, the Library received over $85,000 in funds and $11,000 in materials for programs and services to the community, including:
 Literacy Services to Adults – The Library rebuilt and updated its Literacy Services and added English As A Second Language (ESL) to its program.  Programming for Developmentally Adults – The Library received funds to present programming on sustainability. The programs included topics such as native plants, the benefits of insects and trees, low waste living and energy and water efficiency.
 Stay and Play, a program that provides a dedicated space for children and their caregivers to promote socializing, learning, and literacy  Participation in E-books For All, a statewide collection of e-books and eaudiobooks. The Library received funds to select titles that interest our community.
 Materials to distribute or offer for checkout, such as eclipse viewing glasses, backpacks with hiking supplies, including solar panels, and fix-it kits filled with tools to help people fix their broken items.
 Passport Services - In August 2023 the Library began to offer passport acceptance services. During this period the Library generated almost $13,000 in fees related to services and passport photos.

Accomplishments
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(xvii)
 Library Programs - The Library’s innovative programming was very popular with the public. We hosted Pub Trivia, a Mystery Dinner Night, Lantern Tours and 5 book groups. We also expanded our First Fridays and added teen programming. Our Children’s programming grew considerably.

Over 500 guests attended our Summer Reading Program kickoff party, where we presented a live dance band, face painting, a caricature artist, a mocktail bar and a live animal show complete with a kangaroo. We also revised our children’s literacy program and replaced the old Reading Club with a new Reading Lab that is open to all children regardless of reading level and promotes reading with fun activities.
 The Family and Human Services Division continued to increased offerings for social services, community events, and programs for seniors, this includes:
 $83,918.59 in utility assistance grants, and 453 applications were processed.

The Family & Human Services Division continues to partner with United Way and Southern California Edison and SoCal Gas, to provide utility assistance to low-income families and seniors at risk of having their utilities disconnected.
 210 Emergency food/clothing packages were distributed. Gus’ Kitchen Food Pantry and Community Closet located at the Gus Velasco Neighborhood Center, provides food, hygiene products, and clothing to low-income residents and our unhoused neighbors.
 144 inquiries for affordable housing, were responded to by case managers.

Affordable housing is increasingly in demand. Most of those in need are either at risk of homelessness or homeless and are often older adults or families.
 125 participants attended our Family Health and Wellness classes. These events are chosen to promote protective factors within families and build overall health in our community. Evidence-based data shows that regular family engagement, communication, acceptance, and time spent together after school supports strong families, mental health, and resilience. They also reduce the risk of child abuse and substance use. The classes this year were:
 Cellphone Savvy Family Photo Class- 15 Participants
 Family Rock Painting Night- 29 Participants
 Family Yoga Night, (in partnership with SPIRITT Family Services)- 16 Participants
 Family Wood Block Craft- 32 Participants
 Pride Family Paint Night- 33 Participants
 168 Backpacks filled with school supplies were distributed to Santa Fe Springs resident children for our Back-to-School Backpack Program.

Backpacks were donated by the Rotary Club of Santa Fe Springs, and other monetary donations as well as school supplies were donated by the community.

Accomplishments
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 153 bags of clothing were provided to community children at the Children’s Spring Boutique. A boutique-style outdoor marketplace provides our families with a fun and festive shopping experience. Gently used clothing from our Community Closet was displayed for families to shop for free!  324-holiday food baskets were distributed to older adults and families in the community through the Neighborly Elf and Thankful Neighbor Basket programs.
 3,645 Social Service inquiries were responded to, by Case Managers.  98 Families and individuals received assistance in accessing or maintaining affordable health care through Covered California.
 292 Clients received assistance in form completion. Most are to assist with maintaining or accessing vital services to improve or maintain their quality of life.
 Two emergency meetings were coordinated to offer support and resources to the residents living without gas because of a gas leak and shut off natural gas to the Placita Park Apartment complex. Resources included gift cards, information and referrals, and electric space heaters. An additional meeting with a speaker from the Housing Rights Center was held to inform residents of their rights as tenants. 124 residents of the apartments attended the meetings.
 15 Older adults attended a workshop on How to Protect your Home Equity, to prevent being a victim of fraud or scams.
 10 Children participated in a sleep-away camp through Woodcraft Rangers and sponsored by Family and Human Services.
 4 children were sponsored by Family and Human Services funds for sports and day camp activities.

Department of Parks and Recreation

The Department of Parks & Recreation is dedicated to enriching the lives of our residents by providing quality and caring programs, events, and services that foster community engagement, personal growth, and well-being. We strive to create inclusive recreational opportunities that promote both physical and emotional development for individuals of all ages.

Our wide array of offerings includes year-round programs such as youth and adult sports leagues, recreational classes, day camps, aquatic programs, and youth-focused initiatives at our Activity Center. These activities are thoughtfully designed to encourage cultural enrichment, social connection, and lifelong learning, ensuring that every resident can find opportunities to explore their interests and achieve personal growth.

Accomplishments
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 Restructured Operations and Established the Department of Parks and Recreation o In February 2024, the City established the Department of Parks and Recreation, leading to a comprehensive restructuring of program areas and operations. Key improvements that directly impacted residents and key stakeholders by providing higher-quality programming, fostering opportunities for new collaborations, and improving the overall management of community resources, included:
 The creation of a dedicated maintenance crew for sports fields.  The addition of Summer Movie Nights (formerly housed in Community Services).
 The integration of the Family and Youth Intervention Program into recreation programming, enhancing service delivery and operational efficiency.
 Expanded and Enhanced Community Events
o The Department significantly increased and enhanced community events, resulting in higher participation and community pride. Key highlights included:
 Overall, the department hosted 12 community special events with an estimated attendance of approximately 36,600 people.  The Independence Day celebration attracted 3,000 more attendees than the previous year—a 25% increase—largely due to improved entertainment, the addition of a second stage, and a spectacularly produced fireworks show.
 New Memorial Day and Veterans Day Ceremonies were
introduced to honor military personnel and their families, receiving widespread acclaim from the community for their heartfelt tributes.
 The annual 5K event saw a 50% increase in participation, with 700 additional participants joining the run.
 The Tree Lighting Ceremony also experienced a significant boost in attendance, with an estimated 4,200 attendees enjoying the festive celebration.
 Expanded Collaborative Partnership with the American Cancer Society o The Department forged new partnerships, including securing various donations and services for Relay for Life, which featured enhanced entertainment and new activities. Despite a location change that was initially received by stakeholders with skepticism, the event attracted more volunteers, raised over $100,000 toward cancer research, and saw a 37% increase in participation, with over 3,700 attendees, the most this event has seen. These efforts strengthened community engagement and elevated the overall event experience. Additionally, the Relay for Life event was nominated for Event of the Year on the west coast by the American Cancer Society, highlighting its significant impact and success.

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 Reintroduced Swim Program at the Aquatic Center
o The Department successfully reintroduced the swim program at the Aquatic Center following a complete refurbishment of the pools, after a three-year closure due to safety concerns. The upgrades included new concrete decking, advanced pool features, modern equipment, and infrastructure leak repairs, revitalizing the facility. Swim lessons were reinstated mid-summer, serving 80% residents, with a daily average participation of 514 across various aquatic programs, including swim lessons, water aerobics, lap swim, and recreational swim, significantly enhancing community engagement and wellness.
 Enhanced Community Access Through Online Transactions The Department strengthened its role as a community hub by increasing online transactions by 31% in the past fiscal year, with online registrations accounting for 22% of all transactions processed for recreation programs. In total, the department processed 5,569 transactions, showcasing its commitment to accessibility and convenience for residents. These efforts reflect the department's dedication to modernizing services and enhancing community engagement.

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.

City Manager’s Office Accomplishments
In the past year, the City Manager’s Office has made significant strides in improving internal operations, enhancing efficiency, and addressing the evolving needs of both city departments and the community. Key accomplishments include:
 Organizational Enhancements & Efficiency Improvements o Assessed internal city expectations and community needs to better align operations with resident and staff priorities.
o Strengthened the City Manager’s Office by integrating Human Resources and IT functions under its umbrella, fostering greater collaboration, efficiency, and productivity.

Accomplishments
& Outlook ሺcont.ሻ
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 Human Resources & Policy Updates
o Launched a streamlined performance evaluation system, making it more efficient for supervisors to complete assessments.
o Conducted and implemented a comprehensive classification and compensation study to ensure equitable and competitive pay structures. o Implemented a revised Vehicle Use Policy to enhance operational consistency and accountability.
o Continued to provide guidance to Department Directors on personnel matters, ensuring effective leadership and decision-making.  Technology & Communication Advancements
o Conducted an IT assessment to identify and address infrastructure needs. o Successfully launched the City's first YouTube-streamed Council meeting, increasing public access to government proceedings. Meetings are now available on the City's website for on-demand viewing.
o Upgraded all city users to Microsoft 365, improving communication and productivity across departments.
o Updated the City’s online domain from .org to .gov to comply with state requirements, reinforcing the City's official government status and enhancing cybersecurity.
 Financial & Operational Improvements
o Collaborated with the Finance Department to implement a new banking process, ensuring high-quality service and a cost-effective fee structure. o Evaluated City facility audiovisual needs, paving the way for AV system enhancements.

Through these initiatives, the City Manager’s Office remains committed to fostering an efficient, transparent, and responsive government that effectively serves both city employees and the community.

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.

Accomplishments
& Outlook ሺcont.ሻ
(xxii)
During Fiscal Year 2022 through 2023, the City’s operations were in part 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 department is in the process of implementing the following:
 Transitioning to a new bank
 New Trustee for Pension and OPEB
 New Investment Portfolio Manager
 Lock Box system to ensure quick turnaround for payment processing
 New Water utility billing software
 Budget software
 Assisting Human Resources and Payroll software
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 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.

The City established California Employers Pension Prefunding Trust ሺCEPPTሻ on June 2021. This is a special trust fund for the purpose of allowing City to prefund the required pension contributions to a defined benefit pension plan by receiving and holding in the CEPPT amounts that are intended to be contributed to the Pension Plan at a later date.

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, 2023, the City of Santa Fe Springs oversaw five outstanding bond issues comprised of: three Consolidated Redevelopment Project tax allocation bond issues, and two City water revenue bond issues.

Debt
Administration
Long-Term
Financial Planning
Accomplishments
& Outlook ሺcont.ሻ
(xxiii)
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/Finance 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.

René Bobadilla
City Manager
Lana Dich
Director of Finance

Acknowledgements
(xxiv)
(xxv)
(xxvi)
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(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Santa Fe Springs
Santa Fe Springs, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Santa Fe Springs (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and Members of the City Council
City of Santa Fe Springs
(2)
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Honorable Mayor and Members of the City Council
City of Santa Fe Springs
(3)
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, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (4)
Honorable Mayor and Members of the City Council
City of Santa Fe Springs
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 10, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 10, 2025

CITY OF SANTA FE SPRINGS
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(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, 2024. 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 $32.1 million to $249.0 million. The governmental net position increased by $30.4 million or 15.8%, while the businesstype net position increased by $1.7 million or 7.1%.  The General Fund, on the current financial resources basis, reported an increase in fund balance of $20.8 million to $121.2 million. Excluding transfers and other financing sources/uses, the General Fund reported $24.3 million excess of revenues over expenditures. Revenues increased by $5.4 million or 5.4% and expenditures increased by $5.9 million or 7.8% when compared to prior year.

Increase in revenues was primarily due to increase in revenues provided by sales, use, and transaction taxes, use of money & property and charges for services. Increases in expenditures were mainly due to supply chain pressure, causing inflation to rise sharply.  At the close of the fiscal year, unassigned fund balance for the General Fund was $50.1 million or approximately 56.4% of total General Fund expenditures and transfers.

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 governmental activities of the City include general government, public safety, community development, public works, culture and leisure, human services and Interest on Long-Term debt. 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
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(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
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(7)
Total
Percent
Change
2023 2024 2023 2024 2023 2024
Current and other assets 200.7$ 220.0$ 20.4$ 22.3$ 221.1$ 242.3 $ 9.6% Capital assets, net 171.3 163.1 25.0 24.4 188.1 195.7 4.0% Total assets 391.3 363.8 45.4 46.7 409.2 438.0 7.0%
Deferred outflows 46.3 47.2 2.7 2.6 49.9 48.9 -2.0%
Long-term liabilities 176.0 168.8 20.7 19.6 196.7 188.4 -4.2% Other liabilities 11.5 13.1 2.9 2.8 16.0 14.3 -10.6%
Total liabilities 180.3 189.1 23.6 22.4 212.7 202.7 -4.7% Deferred inflows 33.9 28.9 0.6 1.3 29.5 35.2 19.3%
Net position
165.1 155.9 17.7 17.2 173.6 182.3 5.0%
Restricted 40.5 34.5 0.6 35.1 40.5 15.4%
Unrestricted 17.8 2.6 5.6 8.4 8.2 26.2 219.5%
$ 223.4$ 193.0 23.9$ 25.6$ 216.9$ 249.0 $ 14.8%
City of Santa Fe Springs
Summary of Net Position
June 30, 2023 and 2024
(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 exceeded liabilities and deferred inflows by $249.0 million at the close of the fiscal year. The largest portion of the City’s net position 73.2%, is invested in capital assets, net of related debt. Approximately 10.5 % of the City’s net position is unrestricted. Unrestricted net position is at a surplus of $26.1 million, an increase of $17.9 million from the prior year. An additional portion of the City’s net position, $40.5 million, represents resources that are subject to external restrictions on how they may be used.

During the fiscal year, the City’s ending net position increased by $32.1 million, when compared to the prior year, revenues increased by $3.8 million to $135.4 million. Expenses increased by $11.0 million to $103.3 million. Total revenues outpaced total expenses primarily due to increases in sales, use, and transaction taxes, franchise taxes, use of money & property, and charges for services program revenues.

CITY OF SANTA FE SPRINGS
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(8)
Total
Percentage
Change
2023 2024 2023 2024 2023 2024
Revenues
Program revenues:

Charges for services 14.7 $ 14.3$ 15.3$ 16.1$ 30.0$ 30.4$ 1.3%

11.4 7.7 0.1 - 11.5 7.7 -33.0%

3.4 3.7 - 0.1 3.4 3.8 11.8%
General revenues:

Sales and use taxes 40.2 40.5 - - 40.2 40.5 0.7%
Transaction and use taxes 16.8 17.2 - - 16.8 17.2 2.4%
Property taxes 5.9 6.4 - - 5.9 6.4 8.5%
Franchise taxes 4.7 5.3 - - 4.7 5.3 12.8%
Motor vehicle in lieu 2.5 2.7 - - 2.5 2.7 8.0%
Business operations taxes 0.8 0.8 - - 0.8 0.8 0.0%
Utility users taxes 8.8 8.8 - - 8.8 8.8 0.0%
Other taxes 0.2 0.2 - - 0.2 0.2 0.0%
Use of money and property 4.0 9.1 0.4 0.7 4.4 9.8 122.7% Other 2.3 1.7 0.1 0.1 2.4 1.8 -25.0%
Total revenues 115.7 118.4 15.9 17.0 131.6 135.4 2.9%
Expenses
Governmental activities:

General government 10.3 11.2 - - 10.3 11.2 8.7%
Public safety 28.3 41.4 - - 28.3 41.4 46.3%
Community development 11.7 4.7 - - 11.7 4.7 -59.8%
Public works 18.8 20.9 - - 18.8 20.9 11.2%
Culture and leisure 7.3 8.6 - - 7.3 8.6 17.8%
Human services 2.2 2.4 - - 2.2 2.4 9.1%
Interest on long-term debt 0.1 0.1 - - 0.1 0.1 0.0%
Business-type activities:

Water - - 13.6 14.0 13.6 14.0 2.9%
Total expenses 78.7 89.3 13.6 14.0 92.3 103.3 11.9%
Excess (deficiency) before transfers 37.0 29.1 2.3 3.0 39.3 32.1 -18.3% Transfers 1.4 1.3 (1.4) (1.3) - -
Increase (decrease) in net position 38.4 30.4 0.9 1.7 39.3 32.1 -18.3% Net position - beginning 154.6 193.0 23.0 23.9 177.6 216.9 22.1% Net position - ending $ 193.0 223.4$ 23.9$ 25.6$ 216.9$ 249.0$ 14.8% Changes in Net Position
For the Fiscal Years Ended June 30, 2023 and 2024
(in millions)
Total
Governmental Business-type Primary
Activities Activities Government
Operating grants and contributions
Capital grants and contributions
The City’s total revenues were $135.4 million for the fiscal year ended June 30, 2024. Revenues from governmental activity totaled $118.4 million and revenues from business-type activities totaled $17.0 million. Program revenues comprise 30.9% of total revenues with the largest portion of this, $30.4 million, resulting from charges for services. Sales, use, and transaction taxes comprise 42.6% of total revenues and other general revenues comprise the remaining 26.4%. Total revenues increased by

2.9%, primarily due to increase in program charges for services, sales, use, and transaction taxes, and the use of money & property during the fiscal year.
 Charges for services includes culture and leisure programs, and facilities rentals. Increased in charges for services due to an increase in the demand to use city’s programs and services.  The stay-at-home orders during the pandemic generated greater than anticipated online sales which resulted in the City’s increased sales, use, and transaction taxes.

CITY OF SANTA FE SPRINGS
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(9)
Expenses of the City for the year totaled $103.3 million. Governmental activity expenses totaled $89.3 million, or 86.4% of total expenses. The following table summarizes the total cost and net cost of the City’s governmental activities by function type.

Percentage Percentage
Change Change
2023 2024 2023 2024
General government $ 10.3 11.2$ 8.7% 2.5 $ $ 2.8 12.0%
Public safety 28.3 41.4 46.3% 20.2 36.8 82.2%
Community development 11.7 4.7 -59.8% 8.1 1.6 -80.2%
Public works 18.8 20.9 11.2% 10.6 13.1 23.6%
Culture and leisure 7.3 8.6 17.8% 5.8 7.1 22.4%
Human services 2.2 2.4 9.1% 1.8 2.1 16.7%
Interest on long-term debt 0.1 0.1 0.0% 0.1 0.1 0.0%
Total $ 78.7 89.3$ 13.5% 49.1$ $ 63.6 29.5%
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 $16.2 million, and investment and other income totaled an additional $0.8 million. Expenses of the Water Utility were $14.0 million. Water rates include a factor to provide for a modest annual water infrastructure replacement program. Income before transfers was $3.0 million. Transfers out totaled $1.3 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 $24.4 million (net of accumulated depreciation) decreased by approximately $0.6 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, 2024, of $182.5 million, an increase of approximately $17.6 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, use, and transaction taxes, use of money & property and charges for services program incomes. The increase in the use of money and property was due to an increase interest rates the City is earning on its funds invested.

CITY OF SANTA FE SPRINGS
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(10)
The General Fund is the chief operating fund of the City. On June 30, 2024, the General Fund’s unassigned fund balance was $50.1 million. Additional General Fund balances were: nonspendable $1.8 million, restricted $3.9 million, committed $0.2 million, and assigned $65.2 million. Revenues increased by approximately $5.4 million, and expenditures increased by $5.9 million when compared to prior year. The revenue increase is a combination of increases in sales, use, transaction taxes, franchise taxes, use of money & property, and charges for services program incomes. The expenditure increase is reflective of rising costs across the nation, pension costs, and additional projects. During the fiscal year ended June 30, 2024, the overall fund balance in the General Fund increased by $20.7 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 $9.8 million consisting primarily of cash and investments, notes and loans, advances receivable, and land and buildings held for resale. During fiscal year 2023-24 the Fund expended $1.5 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 $11.4 million primarily consisting of cash and investments, and receivables expected to be received from various governmental agencies. During the fiscal year ended June 30, 2024, the overall Fund balance decreased by $2.6 million. The decrease was due to an increase in Due to other Funds and offset by reimbursements from various government agencies for completed projects during prior year were collected this 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, 2024, the General Fund transferred $7.9 million into the Prefunded Capital Projects Fund to restore a portion of the CIP target funding. The Fund balance has decreased by $1.9 million to $33.6 million as of the fiscal year-end. The decrease was primarily due to an increase in capital outlay. 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

CITY OF SANTA FE SPRINGS
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(11)
used. During fiscal year 2023-24, the City expended approximately $0.8 million on projects. As of fiscal year-end the fund balance increased by $0.2 million to $8.3 million. The increase was due to higher interest income on investments. The balance accumulated in the Fund is to be used on future projects.

General Fund Budgetary Highlights
The difference between the original budget and the final amended budget for expenditures was a $1.9 million increase or 2.1%. The final amended budget exceeded actual expenditures by approximately

10.1% due to lower-than-expected operation costs throughout most functional areas.

Revenues exceeded the budget amount by $14.2 million, primarily due sales, use, and transaction taxes growth more than anticipated after the pandemic. Increases were seen in other revenue categories, including franchise taxes, charges for services, licenses and permits, and interest income.

The Notes to the Required Supplementary Information provides more details regarding budgeting policies and practices.

Capital Assets
The City’s investment in capital assets for its governmental activities as of June 30, 2024, amounts to $171.3 million (net of accumulated depreciation), an increase of approximately $8.2 million from the previous year. This investment in capital assets includes land, construction in progress, buildings, improvements other than buildings, equipment and infrastructure. Note 7 – 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, 2024, amounts to $24.4 million (net of accumulated depreciation), a decrease of $0.6 million. Water Utility capital assets required for private development purposes are funded by capital contributions.

Long-term Liabilities
On June 30, 2024, the City’s governmental activities long-term liabilities decreased by $7.2 million to $170.2 million. The City’s business-type activities long-term liabilities decreased by $1.1 million to $19.9 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 8 – Long-Term Liabilities, Note 9 - Compensated Absences, Note 11 – Pension Plan Obligations and Note 12 – 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
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2024
(12)
Outstanding Debt
(in millions)
Total
Percentage
Change
2023 2024 2023 2024 2023 2024
Revenue bonds - $ -$ 7.4$ 7.2$ 7.4$ 7.2$ -2.7%
Compensated absences 1.9 1.9 0.3 0.3 2.2 2.2 0.0%
OPEB obligation 34.8 20.7 3.4 2.0 38.2 22.7 -40.6%
Pension obligation 135.6 143.1 9.9 10.4 145.5 153.5 5.5% Other loans/leases 5.1 4.5 0.0 0.0 5.1 4.5 -11.8%
Total 177.4$ $ $ 21.0$ 170.2 19.9$ 198.4 $ $ 190.1 -4.2% Governmental Activities Business-type Activities Total
All water revenue 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 has 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.
 Increasing demands for public services, including unfunded mandates by both federal and state governments.
 The high inflation rates have led to sharp increases in the cost of living throughout our community and it has also increased the cost to deliver City’s programs and services.

All these factors were considered in adopting the Fiscal Year 2025-26 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

STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(13)
Governmental Business-Type
Activities Activity Total

CURRENT ASSETS
Cash and Investments $ 139,790,474 $ 17,400,453 $ 157,190,927 Receivables:

Accounts 3,703,594 3,956,338 7,659,932
Interest 795,706 2,662 798,368
Leases 257,548 - 257,548
Deposits and Other Assets 363,622 - 363,622
Due from Other Governments 20,631,699 - 20,631,699
Inventories 1,265,018 328,153 1,593,171
Restricted Assets:

Cash and Investments with Fiscal Agents 28,237,121 574,740 28,811,861 Total Current Assets 195,044,782 22,262,346 217,307,128

NONCURRENT ASSETS
Notes and Loans, Net of Allowances 6,254,849 - 6,254,849 Leases Receivable 18,083,305 - 18,083,305
Land and Buildings Held for Resale 520,032 - 520,032
Capital Assets Not Being Depreciated/Amortized 60,429,279 8,366,862 68,796,141 Capital Assets, Net of Depreciation/Amortization 110,917,569 16,031,166 126,948,735 Total Noncurrent Assets 196,205,034 24,398,028 220,603,062 Total Assets 391,249,816 46,660,374 437,910,190
DEFERRED OUTFLOWS OF RESOURCES:

Deferred Charge on Refunding - 16,655 16,655
Deferred Pension-Related Items 41,257,035 2,160,151 43,417,186 Deferred OPEB-Related Items 5,083,130 502,727 5,585,857 Total Deferred Outflows of Resources 46,340,165 2,679,533 49,019,698

CURRENT LIABILITIES
Accounts Payable 4,385,846 1,327,965 5,713,811
Accrued Liabilities 2,016,066 190,583 2,206,649
Accrued Interest 41,438 44,313 85,751
Unearned Revenue 780,405 15,102 795,507
Deposits Payable 2,373,771 972,331 3,346,102
Due to Other Governments 538,953 - 538,953
Compensated Absences 440,000 60,000 500,000
Bonds, Notes, and Lease Payable 935,828 223,817 1,159,645 Total Current Liabilities 11,512,307 2,834,111 14,346,418

NONCURRENT LIABILITIES
Compensated Absences 1,456,806 198,656 1,655,462
Bonds, Notes, Lease and SBITA Payable 3,516,713 6,963,435 10,480,148 Net OPEB Liability 20,680,773 2,045,351 22,726,124
Net Pension Liability 143,122,601 10,422,414 153,545,015 Total Noncurrent Liabilities 168,776,893 19,629,856 188,406,749 Total Liabilities 180,289,200 22,463,967 202,753,167

DEFERRED INFLOWS OF RESOURCES
Deferred Pension-Related Items 3,576,520 112,060 3,688,580 Deferred OPEB-Related Items 11,955,648 1,182,427 13,138,075 Deferred Leases-Related Items 18,340,853 - 18,340,853
Total Deferred Inflows of Resources 33,873,021 1,294,487 35,167,508

NET POSITION
Net Investment in Capital Assets 165,187,789 17,227,431 182,415,220 Restricted - Nonexpendable 244,676 - 244,676
Restricted - Expendable:

Community Development Projects 114,646 - 114,646
Public Safety 131,479 - 131,479
Public Works 15,665,017 - 15,665,017
Capital Projects 8,267,213 - 8,267,213
Low and Moderate Income Housing 9,814,905 - 9,814,905
Art in Public Places - Expendable 2,416,000 - 2,416,000 Waste Management 3,344,622 - 3,344,622
Environmental Programs 508,908 - 508,908
Unrestricted 17,732,505 8,354,022 26,086,527
Total Net Position $ 223,427,760 $ 25,581,453 $ 249,009,213

CITY OF SANTA FE SPRINGS

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(14)
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government $ 11,238,050 $ 5,735,195 $ 2,655,757 $ - Public Safety 41,413,294 3,354,600 1,237,669 -
Community Development 4,705,749 3,078,908 32,182 -
Public Works 20,888,027 1,169,696 2,844,777 3,732,406
Culture and Leisure 8,613,554 602,224 939,685 -
Human Services 2,404,255 342,632 26,511 -
Interest on Long-Term Debt 125,137 - - -
Total Governmental Activities 89,388,066 14,283,255 7,736,581 3,732,406 Business-Type Activity:

Water Fund 14,019,326 16,148,720 35,222 75,113
Total $ 103,407,392 $ 30,431,975 $ 7,771,803 $ 3,807,519 Program Revenues

CITY OF SANTA FE SPRINGS

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(15)
Governmental Business-Type
Functions/Programs Activities Activity Total
Governmental Activities:

General Government $ (2,847,098) $ - $ (2,847,098)
Public Safety (36,821,025) - (36,821,025)
Community Development (1,594,659) - (1,594,659)
Public Works (13,141,148) - (13,141,148)
Culture and Leisure (7,071,645) - (7,071,645)
Human Services (2,035,112) - (2,035,112)
Interest on Long-Term Debt (125,137) - (125,137)
Total Governmental Activities (63,635,824) - (63,635,824) Business-Type Activity:

Water Fund - 2,239,729 2,239,729
Total (63,635,824) 2,239,729 (61,396,095)

GENERAL REVENUES
Taxes:

Property Taxes,
Levied for General Purpose 6,322,226 - 6,322,226
Transaction and Use Taxes 17,251,079 - 17,251,079
Sales and Use Taxes 40,445,644 - 40,445,644
Franchise Taxes 5,254,059 - 5,254,059
Business Operation Taxes 815,837 - 815,837
Utility Users Tax 8,827,062 - 8,827,062
Other Taxes 174,853 - 174,853
Intergovernmental Revenues -
Motor Vehicle in Lieu 2,739,793 - 2,739,793
Use of Money and Property 9,131,020 681,910 9,812,930
Other 1,747,586 101,074 1,848,660
Gain on Sale of Capital Assets 34,215 - 34,215
TRANSFERS 1,343,800 (1,343,800) -
Total General Revenues and Transfers 94,087,174 (560,816) 93,526,358 CHANGE IN NET POSITION 30,451,350 1,678,913 32,130,263
Net Position - Beginning of Year 192,976,410 23,902,540 216,878,950 NET POSITION - END OF YEAR $ 223,427,760 $ 25,581,453 $ 249,009,213 Net (Expense) Revenue and
Changes in Net Position

CITY OF SANTA FE SPRINGS
BALANCE SHEET—GOVERNMENTAL FUNDS
JUNE 30, 2024
See accompanying 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 $ 76,271,314 $ 1,833,035 $ 3,182,922 $ 35,245,002 Restricted Cash and Investments with Fiscal Agents 28,237,121 - - - Receivables:

Accounts 3,653,375 29,098 20,408 -
Notes and Loans, Net of Allowances 177,450 6,000,000 - - Leases 18,340,853 - - -
Accrued Interest 578,211 - - -
Deposits and Other Assets 363,622 - - -
Due from Other Governments 10,847,193 - 8,217,416 10,088 Due from Other Funds 8,632,549 - - -
Advances to Other Funds - 1,437,861 - -
Inventories 1,265,018 - - -
Land and Buildings Held for Resale - 520,032 - -
Total Assets $ 148,366,706 $ 9,820,026 $ 11,420,746 $ 35,255,090

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 2,621,009 $ 1,493 $ 96,269 $ 1,610,249 Accrued Liabilities 1,998,532 3,628 - 11,559
Unearned Revenues 766,305 - - -
Deposits Payable 1,516,609 - 857,162 -
Due to Other Governments 473,359 - 65,594 -
Due to Other Funds - - 7,384,255 -
Advances from Other Funds 1,437,861 - - -
Total Liabilities 8,813,675 5,121 8,403,280 1,621,808

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 21,435 - 8,217,416 10,088
Deferred Leases-Related Items 18,340,853 - - -
Total Deferred Inflows of Resources 18,362,288 - 8,217,416 10,088

FUND BALANCES
Nonspendable:

Inventory 1,265,018 - - -
Notes and Loans 177,450 - - -
Deposits and Other Assets 363,622 - -
Permanent Fund Principal - - - -
Restricted for:

Community Development Projects - - - -
Public Safety - - - -
Public Works - - - -
Capital Projects - - - -
Low and Moderate Income Housing - 9,814,905 - -
Art in Public Places - - - -
Waste Management 3,344,622 - - -
Environmental Programs 508,908 - - -
Committed to:

Capital Projects 225,000 - - -
Assigned to:

Capital Projects 9,500,000 - - 33,623,194
Renovation & Replacement 250,000 - - -
Facility Improvement 25,193 - - -
Equipment Replacement 9,177,605 - - -
Economic Uncertainty 11,725,000 - - -
Employee Liability - 7,377,784 - -
Risk Management 903,200 - - -
Unfunded Liability 26,276,543 - - -
Unassigned 50,070,798 - (5,199,950) -
Total Fund Balances 121,190,743 9,814,905 (5,199,950) 33,623,194 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 148,366,706 $ 9,820,026 $ 11,420,746 $ 35,255,090 Capital Projects Funds

CITY OF SANTA FE SPRINGS
BALANCE SHEET—GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(17)
Capital Projects
Funds
Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds
ASSETS
Pooled Cash and Investments $ 7,991,569 $ 15,266,632 $ 139,790,474 Restricted Cash with Fiscal Agent - - 28,237,121
Receivables:

Accounts 713 - 3,703,594
Notes and Loans, Net of Allowances 58,149 19,250 6,254,849 Leases - - 18,340,853
Accrued Interest - 217,495 795,706
Deposits and Other Assets - - 363,622
Due from Other Governments 1,557,002 - 20,631,699
Due from Other Funds - - 8,632,549
Advances to Other Funds - - 1,437,861
Inventories - - 1,265,018
Land and Buildings Held for Resale - - 520,032
Total Assets $ 8,267,213 $ 16,843,597 $ 229,973,378

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 56,826 - $ 4,385,846 $
Accrued Liabilities 2,347 - 2,016,066
Unearned Revenues 14,100 - 780,405
Deposits Payable - - 2,373,771
Due to Other Governments - - 538,953
Due to Other Funds 1,248,294 - 8,632,549
Advances from Other Funds - - 1,437,861
Total Liabilities 1,321,567 - 20,165,451

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 749,157 - 8,998,096
Deferred Leases-Related Items - - 18,340,853
Total Deferred Inflows of Resources - 749,157 27,338,949

FUND BALANCES
Nonspendable:

Inventory - - 1,265,018
Notes and Loans - - 177,450
Deposits and Other Assets - - 363,622
Permanent Fund Principal 244,676 - 244,676
Restricted for:

Community Development Projects - 114,646 114,646
Public Safety 131,479 - 131,479
Public Works 12,647,551 - 12,647,551
Capital Projects - 8,267,213 8,267,213
Low and Moderate Income Housing - - 9,814,905
Art in Public Places 2,416,000 - 2,416,000
Waste Management - - 3,344,622
Environmental Programs - - 508,908
Committed to:

Capital Projects - - 225,000
Assigned to:

Capital Projects - - 43,123,194
Renovation & Replacement - - 250,000
Facility Improvement - - 25,193
Equipment Replacement - - 9,177,605
Economic Uncertainty - - 11,725,000
Employee Benefits - - 7,377,784
Risk Management - - 903,200
Unfunded Liability - - 26,276,543
Unassigned - (781,479) 44,089,369
Total Fund Balances 8,267,213 14,772,873 182,468,978
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 8,267,213 $ 16,843,597 $ 229,973,378

CITY OF SANTA FE SPRINGS

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(18)
Fund Balances of Governmental Funds $ 182,468,978
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/Amortized 60,429,279 $ Capital Assets Being Depreciated/Amortized 265,725,058
Accumulated Depreciation/Amortization (154,807,489) 171,346,848 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.

Notes and Lease Payable (4,452,541)
Compensated Absences (1,896,806) (6,349,347)
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 41,257,035 Deferred Inflows of Resources - Pension Related (3,576,520) Net Pension Liability (143,122,601)
Deferred Outflows of Resources - OPEB Related 5,083,130 Deferred Inflows of Resources - OPEB Related (11,955,648) Net OPEB Liability (20,680,773) (132,995,377)
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (41,438) 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. 8,998,096 Net Position of Governmental Activities $ 223,427,760
(19)
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CITY OF SANTA FE SPRINGS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES—GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
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 81,562,279 $ - $ - $ - $
Licenses and Permits 3,685,156 - - -
Intergovernmental 1,013,587 - 410,442 16,410
Charges for Services 7,517,518 - 28,425 -
Use of Money and Property 7,367,932 204,640 - -
Rentals 2,103,157 - - -
Fines and Forfeitures 772,530 - - -
Contributions 258,116 - - -
Miscellaneous 1,533,425 16,548 332,248 975
Total Revenues 105,813,700 221,188 771,115 17,385

EXPENDITURES
Current:

General Government 10,812,851 - - -
Public Safety 39,447,134 - - -
Community Development 3,540,981 1,459,966 - -
Public Works 14,839,359 - - 235,288
Culture and Leisure 7,861,333 - - -
Human Services 2,207,919 - - -
Capital Outlay 1,656,202 - 4,214,252 9,216,310
Debt Service:

Principal Retirement 1,008,219 - - -
Interest and Fiscal Charges 134,763 - - -
Total Expenditures 81,508,761 1,459,966 4,214,252 9,451,598

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,238,778) 24,304,939 (3,443,137) (9,434,213)

OTHER FINANCING SOURCES (USES)
Transfers In 3,350,469 - 851,288 7,881,534
Transfers Out (7,290,190) - - (311,242)
Sale of Capital Assets 34,215 - - -
Issuance of SBITA Payable 351,676 - - -
Total Other Financing Sources (Uses) (3,553,830) - 851,288 7,570,292 NET CHANGE IN FUND BALANCES 20,751,109 (1,238,778) (2,591,849) (1,863,921) Fund Balances - Beginning of Year 11,053,683 100,439,634 (2,608,101) 35,487,115 FUND BALANCES - END OF YEAR $ 9,814,905 121,190,743 $ (5,199,950) $ 33,623,194 $ Capital Projects Funds

CITY OF SANTA FE SPRINGS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES—GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(21)
Capital Projects
Funds
Successor
Agency Bond Nonmajor Total
Funded Capital Governmental Governmental
Projects Funds Funds

REVENUES
Taxes $ 246,839 - $ 81,809,118 $
Licenses and Permits - - 3,685,156
Intergovernmental 5,446,782 - 6,887,221
Charges for Services - - 7,545,943
Use of Money and Property 1,036,902 521,546 9,131,020
Rentals - - 2,103,157
Fines and Forfeitures - - 772,530
Contributions 806,705 - 1,064,821
Miscellaneous - - 1,883,196
Total Revenues 1,036,902 7,021,872 114,882,162

EXPENDITURES
Current:

General Government - - 10,812,851
Public Safety 423,375 - 39,870,509
Community Development - 32,182 5,033,129
Public Works 104,094 - 15,178,741
Culture and Leisure - 28,000 7,889,333
Human Services - - 2,207,919
Capital Outlay 835,727 942,218 16,864,709
Debt Service:

Principal Retirement - - 1,008,219
Interest and Fiscal Charges - - 134,763
Total Expenditures 835,727 1,529,869 99,000,173

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 5,492,003 201,175 15,881,989

OTHER FINANCING SOURCES (USES)
Transfers In 144 - 12,083,435
Transfers Out (3,138,203) - (10,739,635)
Sale of Capital Assets - - 34,215
Issuance of SBITA Payable - - 351,676
Total Other Financing Sources (Uses) - (3,138,059) 1,729,691 NET CHANGE IN FUND BALANCES 201,175 2,353,944 17,611,680 Fund Balances - Beginning of Year 8,066,038 12,418,929 164,857,298 FUND BALANCES - END OF YEAR $ 14,772,873 8,267,213 $ 182,468,978 $

CITY OF SANTA FE SPRINGS

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(22)
Net Change in Fund Balances - Total Governmental Funds $ 17,611,680 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 $ 16,291,437
Depreciation 8,281,244 (8,010,193)
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.

Principal Payment 1,008,219
SBITA Obligation Issuance (351,676) 656,543
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 9,626
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. (29,281) 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. (4,646,559)
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. 4,988,858 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. 3,579,239
Change in Net Position of Governmental Activities $ 30,451,350

CITY OF SANTA FE SPRINGS
STATEMENT OF NET POSITION—PROPRIETARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(23)
Business-Type
Activity -
Enterprise Fund
Water Fund
ASSETS
Current Assets:

Pooled Cash and Investments $ 17,400,453
Receivables:

Accounts 3,956,338
Accrued interest 2,662
Inventories 328,153
Restricted:

Cash with Fiscal Agent 574,740
Total Current Assets 22,262,346

NONCURRENT ASSETS
Capital Assets not Being Depreciated/Amortized 8,366,862 Capital Assets, Net of Depreciation/Amortization 16,031,166 Total Noncurrent Assets 24,398,028
Total Assets 46,660,374

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 16,655
Deferred Pension-Related Items 2,160,151
Deferred OPEB-Related Items 502,727
Total Deferred Outflows of Resources 2,679,533

LIABILITIES
Current Liabilities:

Accounts Payable 1,327,965
Accrued Liabilities 190,583
Accrued Interest 44,313
Unearned Revenues 15,102
Deposits Payable 972,331
Compensated Absences 60,000
Bonds, Notes and Lease Payable 223,817
Total Current Liabilities 2,834,111

NONCURRENT LIABILITIES
Compensated Absences 198,656
Bonds, Notes, and Lease Payable 6,963,435
Net OPEB Liability 2,045,351
Net Pension Liability 10,422,414
Total Noncurrent Liabilities 19,629,856
Total Liabilities 22,463,967
DEFERRED INFLOWS OF RESOURCES:

Deferred Pension-Related Items 112,060
Deferred OPEB-Related Items 1,182,427
Total Deferred Inflows of Resources 1,294,487

NET POSITION
Net Investment in Capital Assets 17,227,431
Unrestricted 8,354,022
Total Net Position $ 25,581,453

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

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(24)
Business-Type
Activity -
Enterprise Fund
Water Fund

OPERATING REVENUES
Sales and Service Charges 16,148,720 $
Other Water Revenue 101,074
Total Operating Revenues 16,249,794

OPERATING EXPENSES
Source of Supply 7,015,949
System Maintenance and Operation 3,655,373
Billing and Collection 1,555,275
Administration 854,058
Depreciation/Amortization Expense 651,439
Total Operating Expenses 13,732,094
OPERATING INCOME 2,517,700

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 681,910
Interest Expense (287,232)
Intergovernmental Revenue 35,222
Total Nonoperating Revenues (Expenses) 429,900
INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 2,947,600 Capital Contributions 75,113
Transfers Out (1,343,800)
CHANGE IN NET POSITION 1,678,913
Net Position - Beginning of Year 23,902,540
NET POSITION - END OF YEAR $ 25,581,453

CITY OF SANTA FE SPRINGS
STATEMENT OF CASH FLOWS—PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
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 15,084,850 $
Cash Paid to Suppliers for Goods and Services (11,753,197) Cash Paid to Employees for Services (1,604,086)
Cash Received from Others 101,074
Net Cash Provided by Operating Activities 1,828,641

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Transfers Out (1,343,800)
Cash Received from Other Governments 35,222
Net Cash Used by Noncapital Financing Activities (1,308,578)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash Received for Capital Contributions 67,713
Principal Paid on Capital Debt (218,758)
Interest Paid on Capital Debt (271,015)
Net Cash Used by Capital and Related Financing Activities (422,060)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 681,910
Net Cash Provided by Investing Activities 681,910
NET INCREASE IN CASH AND CASH EQUIVALENTS 779,913
Cash and Cash Equivalents - Beginning of Year 17,195,280 CASH AND CASH EQUIVALENTS - END OF YEAR $ 17,975,193
CASH AND CASH EQUIVALENTS:

Pooled Cash and Investments $ 17,400,453
Cash with Fiscal Agent 574,740
Total Cash and Cash Equivalents 17,975,193 $

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

Operating Income $ 2,517,700
Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities:

Depreciation/Amortization Expense 651,439
(Increase) Decrease in Assets:

Accounts Receivable (1,188,764)
Inventory (41,629)
Deferred Outflows for Pension-Related Items (82,526)
Deferred Outflows for OPEB-Related Items 75,744
Increase (Decrease) in Liabilities:

Accounts Payable (85,565)
Accrued Liabilities 23,127
Unearned Revenues (44,022)
Deposits Payable 36,255
Compensated Absences 3,993
Net Pension Liability 523,887
Other Postemployments Benefits (1,396,223)
Deferred Inflows for Pension-Related Items (124,511)
Deferred Inflows for OPEB-Related Items 798,526
Net Cash Provided by Operating Activities $ 1,667,431

NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
Amortization of Bond Discounts and Deferred Charges $ 17,073

CITY OF SANTA FE SPRINGS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
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 $ 793,995 $ 2,353,078
Receivables:

Accounts - 19,726
Notes and Loans - 61,438
Due from Other Governments - 68,801
Land and Buildings Held for Resale 3,251,851 -
Restricted Assets:

Cash and Investments with Fiscal Agents 175,647 12,604,586 Capital Assets:

Capital Assets not Being Depreciated - 415,530
Total Assets 969,642 18,775,010

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 97,478
Total Deferred Outflows of Resources - 97,478

LIABILITIES
Accounts Payable - 311
Accrued Liabilities - 6,323
Accrued Interest 4,264,946 -
Deposits Payable - 49,060
Due to Other Governments - 160,706
Long-Term Liabilities:

Due in One Year 4,998,770 -
Due in More Than One Year 26,847,906 -
Total Liabilities 36,328,022 -

NET POSITION
Net Investment in Capital Assets - 415,530
Held for Bondholders 969,642 -
Held in Trust for Other Purposes (17,871,064) -
Total Net Position $ 969,642 $ (17,455,534)

CITY OF SANTA FE SPRINGS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(27)
Private-Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ADDITIONS:

Taxes $ 10,525,148 - $
Special Assessments or Special Taxes
Collected From Property Owners 219,079 -
Interest and Change in Fair Value of Investments 8,494 434,360 Gain on Sale of Land and Buildings Held for Resale - -
Total Additions 227,573 10,959,508
DEDUCTIONS:

Administrative Expenses - 211,953
Program Expenses - 34,000
Payment for Special Assessment or Special Tax Debt 168,361 - Interest Expense - 542,975
Total Deductions 168,361 788,928
CHANGE IN NET POSITION 59,212 10,170,580
Net Position - Beginning of Year 910,430 (27,626,114)
NET POSITION - END OF YEAR $ 969,642 $ (17,455,534)
(28)
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CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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 accounting principles generally accepted in the United States of America, 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 is reported as a fiduciary component unit under private-purpose trust fund in the fiduciary fund statements.

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. See Note 16 for further detail regarding the dissolution.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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 reported in the Water Proprietary Fund and Water Proprietary 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, 2024, 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, 2024, the City contributed $265,893 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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 June 30, 2024 was $5,534. Financial statements can be obtained from the City of Whittier. 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(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.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(37)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 (except for intangible right-to-use lease assets and SBITA assets, the measurement of which is discussed below). 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.

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
Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term. SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(38)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 reports a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to debt refunding, pensions, and other postemployment benefits. The deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

Deferred outflows on pension and other postemployment benefits are more fully discussed in Notes 11 and 12.

In addition to liabilities, the statement of net position and balance sheet reports a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The City’s deferred inflows of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Notes 11 and 12. The statement of net position and the governmental funds balance sheet report a deferred inflow of resources related to leases, which is amortized over the life of the lease.

Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(39)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Unearned Revenue
Unearned revenues are reported in connection with resources that have been received but not yet earned.

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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(40)
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Net Position
The government-wide, proprietary fund, and fiduciary 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 liabilities 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, 2024, 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(41)
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, 2024, the Capital Improvement fund had a deficit fund balance of $5,199,950 and the Fire Grants fund had a deficit fund balance of $781,479. 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(42)
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:
 Low and Moderate Income Housing Assets ($1,206,966)
 Community Development Block Grant ($33,682)
 Measure W ($101,994)
NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Pooled Cash and Investments $ 157,190,927
Cash and Investments with Fiscal Agents 28,811,861
Fiduciary Funds:

Pooled Cash and Investments 3,147,073
Cash and Investments with Fiscal Agents 12,780,233
Total $ 201,930,094
Cash and investments were comprised of the following as of June 30, 2024:

Cash on Hand $ 58,519
Deposits with Financial Institutions 6,575,853
California Employers' Pension Prefunding Trust* 28,237,121 Investments 167,058,601
Total $ 201,930,094
* The City has a Section 115 trust account with CalPERS to hold assets that are legally restricted for use in administering the City’s CalPERS pension plans. The trust’s specific cash and investments are managed by CalPERS under guidelines approved by the City.

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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(43)
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% 5%
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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(44)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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 $ 3,172,997 - $ $ 12,200,737 $ 8,138,306 $ 5,897,743 $ 29,409,783 U.S. Agency Securities:

Federal Home Loan
Mortgage Corporation (FHLMC) 151,824 - 242,252 873,069 1,267,145 - Federal National Mortgage
Association (FNMA) 609,265 1,805,610 1,905,405 1,144,384 4,185,124 9,649,788 Municipal Obligations 642,530 265,482 - - 908,012 -
Medium-Term Notes 1,148,784 3,446,499 7,580,670 2,399,246 1,741,673 16,316,872 Negotiable Certificates of Deposit (CD) 651,297 - 1,028,453 - 1,679,750 - Supranationals - 263,863 - - 263,863 -
Asset-Backed Securities 230,822 - 1,989,130 5,368,442 3,430,056 11,018,450 Local Agency Investment Fund (LAIF) 24,398,688 - - - 24,398,688 - CAMP Pool 58,791,276 - - - 58,791,276 -
Held by Bond Trustee:

Money Market Funds 13,354,974 - - - 13,354,974 -
Total $ 98,945,517 $ 9,459,049 $ 25,475,992 $ 17,923,447 $ 15,254,596 $ 167,058,601 Remaining Maturity (in Months)
Credit Risk
The City’s investment policy limits investments to a rating of “A” 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” 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 supranational. As of June 30, 2024, the City’s investments in external investment pools and money market mutual funds are unrated.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(45)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Credit Risk (Continued)
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 as rated by Standard & Poor’s, a nationally recognized statistical rating organization, are as follows:

Minimum
Total as of Legal Not
Investment Type June 30, 2024 Rating AAA AA A BBB* Rated U.S. Treasury Obligations 29,409,783 $ N/A $ 29,409,783 - $ $ - $ - $ - U.S. Agency Securities:

FHLMC 1,267,145 N/A 1,267,145 - - - -
FNMA 9,649,788 N/A 9,649,788 - - - -
Municipal Obligations 908,012 A 578,695 - - 329,317 -
Medium-Term Notes 16,316,872 A 2,715,322 - 12,637,288 964,262 - Negotiable CD 1,679,750 A - 1,679,750 - - -
Supranationals 263,863 AA 263,863 - - - -
Asset-Backed Securities 11,018,450 AA 7,977,621 - - 3,040,829 - LAIF 24,398,688 N/A - - - 24,398,688 -
CAMP Pool 58,791,276 N/A - - - 58,791,276 -
Held by Bond Trustee:

Money Market Funds 13,354,974 AAA 13,354,974 - - - -
Total $ 167,058,601 $ 21,596,458 $ 43,620,733 $ 14,317,038 $ 964,262 $ 86,560,110 * These investments were rated A by Moody’s, which meets the minimum rating requirement.

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. Investments in any one issuer, other than U.S. Treasury obligations, external investment pools, and money market funds, that represent 5% or more of total City investments at June 30, 2024 are as follows:

Investment Type Issuer Amount
U.S. Agency Securities FNMA $ 9,649,788
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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(46)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investment in State Investment Pool and CAMP 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 and California Asset Management Program (CAMP) that is regulated by California Government Code. The fair value of the City’s investment in these pools is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF and CAMP for the entire LAIF and CAMP portfolio (in relation to the amortized cost of that portfolio, respectively.) The balance available for withdrawal is based on the accounting records maintained by LAIF and CAMP, 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 accounting principles generally accepted in the United States of America. 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, 2024:

Investment Type Totals 1 2
U.S. Treasury Obligations $ 29,409,783 $ 29,409,783 $ - U.S. Agency Securities:

FHLMC 1,267,145 1,267,145 -
FNMA 9,649,788 9,649,788 -
Municipal Obligations 908,012 - 908,012
Medium-Term Notes 16,316,872 16,316,872 -
Negotiable Certificates of Deposit 1,679,750 1,679,750 - Supranationals 263,863 - 263,863
Asset-Backed Securities 11,018,450 11,018,450 -
Totals 70,513,663 $ 29,409,783 $ 41,103,880
Not Subject to Fair Value Measurement
Hierarchy:

Local Agency Investment Fund (LAIF) 24,398,688
CAMP Pool 58,791,276
Held by Bond Trustee:

Money Market Funds 13,354,974
Total Investments $ 167,058,601
Level
All investments classified in Level 2 of the fair value hierarchy are valued using specified fair market value factors or institutional bond quotes.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(47)
NOTE 3 LEASES RECEIVABLE
On March 1, 2003, the City (Landlord) and SFSHP Investors I, LLC and SFSHP Investors II, LLC (collectively, Tenant) entered into an Amended, Restated, and Consolidated Ground Lease for 23 buildings as described in the lease agreement. The ground lease has an amended term of 64 years expiring on December 31, 2067. The annual rent as of July 1, 2021, was $824,000, and is paid in equal monthly installments. The annual rent increases based on defined increases in the Consumer Price Index every five years starting January 1, 2005, with a maximum increase of 35%.

In additional to the ground lease noted above, the City, acting as lessor, leases other land and buildings under long-term noncancelable lease agreements. The leases expire at various dates and provide for renewal options ranging up to 25 years. At June 30, 2024, the City has $18,340,853 in both lease receivables and deferred inflows of resources in the General Fund.

During the year ended June 30, 2024, the City recognized $446,217 and $730,463 in lease revenue and interest revenue, respectively, pursuant to all of its lease agreements.

Total future minimum lease payments to be received under lease agreements are as follows:

Year Ending June 30, Principal Interest
2025 $ 257,548 $ 722,419
2026 238,818 713,773
2027 246,357 704,995
2028 252,055 695,839
2029 248,280 686,457
2030-2034 1,274,671 3,289,799
2035-2039 1,400,678 3,036,018
2040-2044 1,763,844 2,723,294
2045-2049 1,899,254 2,345,305
2050-2054 2,174,749 1,945,250
2055-2059 2,655,362 1,464,637
2060-2064 3,242,188 877,811
2065-2069 2,687,049 196,950
Total $ 18,340,853 $ 19,402,547

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(48)
NOTE 4 LOANS AND NOTES RECEIVABLE
The loans and notes receivable balance consist of the following:

Fund Balance
Governmental Funds:

General Fund $ 177,450
Low and Moderate Income Housing Assets
Special Revenue Fund 6,000,000
Successor Agency Bond Funded Capital
Projects Fund 58,149
Nonmajor Governmental Funds 19,250
Total Funds $ 6,254,849
The General Fund has loans and notes receivable in the amount of $28,360 representing monies advanced to City employees for home computer purchases. These loans are required to be repaid within two years and bear no interest. Notes receivable in the amount of $149,090 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 10 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, 2024 is $822,510 with a net carrying value of zero. The loans do not accrue interest.

In June 2023, the City signed a promissory note to lend Richman Santa Fe Springs Apartments $6,000,000 for the development of affordable housing. The note is secured by certain Deed of Trust with Assignment of Rents with a maturity date of 55 years from the date Conversion occurs, as defined in the agreement. The 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 outstanding principal accrues simple interest at 3%. At June 30, 2024, the note has an outstanding balance of $6,000,000 The Successor Agency Bond Funded Capital Projects Fund has a note receivable in the amount of $58,149 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.

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, 2024, is $19,250.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(49)
NOTE 5 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 6 INTERFUND ACTIVITY
The following is a summary of interfund transfers for the fiscal year ended June 30, 2024:

Prefunded Nonmajor Water
Capital Projects Governmental Enterprise
Transfers In: General Fund Fund Funds Fund Total
General Fund $ - $ 2,006,669 - $ $ 1,343,800 $ 3,350,469 Capital Improvement 540,046 311,242 - 851,288 -
Prefunded Capital Projects Fund 6,750,000 1,131,534 - 7,881,534 - Nonmajor Governmental Funds 144 - - - 144
Total $ 7,290,190 $ 311,242 $ 3,138,203 $ 1,343,800 $ 12,083,435 Transfers Out:

The General Fund transferred $6,750,000 into the Prefunded Capital Projects Fund and $540,046 to Capital Improvement Fund provide funding for current and future capital projects. The General Fund transferred $144 to Fire Grants Nonmajor Governmental Fund for expenditures not covered by grants.

Prefunded Capital Projects Fund transferred $311,242 into Capital Improvement Fund for cost related to a capital project.

Other nonmajor Governmental Funds transferred $2,006,669 into the General Fund for various purposes including eligible expenditures incurred related to public safety, gas tax, metro grants, street lighting, and art in public places activities, and $1,131,531 into the Prefunded Capital Projects Fund for costs incurred related to capital projects.

The Water Fund transferred $1,200,000 into the General Fund in connection with the lease agreement between the City and the City’s Water Utility Authority and $143,800 for NPDES street purposes and other computer replacements.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(50)
NOTE 6 INTERFUND ACTIVITY (CONTINUED)
Due to/from other funds at June 30, 2024, were as follows:

Capital Nonmajor
Improvement Governmental
Due from Fund Funds Total
General Fund 7,384,255 $ 1,248,294 $ 8,632,549 $
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 repaid once the fund receives reimbursement from the grantor.

Advances from other funds and advances to other funds at June 30, 2024, are 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(51)
NOTE 7 CAPITAL ASSETS
The following is a summary of changes in capital assets for the year ended June 30, 2024:

Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Governmental Activities:

Capital Assets, not Being Depreciated/Amortized:

Land $ 49,181,852 $ - $ 49,181,852 - $
Construction in Process 6,699,149 13,934,605 9,386,327 11,247,427 Total Capital Assets not Being
Depreciated/Amortized 55,881,001 13,934,605 9,386,327 60,429,279 Capital Assets, Being Depreciated/Amortized:

Buildings 35,007,427 2,758,843 37,766,270 -
Improvements 32,206,635 3,955,428 36,162,063 -
Equipment 18,753,834 2,005,157 60,555 20,698,436
Intangible Assets 1,313,015 - 1,313,015 -
Infrastructure 166,247,029 2,672,055 168,919,084 -
Right-to-Use Lease Equipment 454,612 - 454,612 -
SBITA 59,902 351,676 411,578 -
Total Capital Assets, Being
Depreciated/Amortized 254,042,454 11,743,159 60,555 265,725,058 Less Accumulated Depreciation/Amortization:

Buildings 16,331,726 792,227 17,123,953 -
Improvements 21,771,885 1,148,356 22,920,241 -
Equipment 11,879,399 1,447,909 60,555 13,266,753
Intangible Assets 393,905 87,534 481,439 -
Infrastructure 96,339,331 4,384,142 100,723,473 -
Right-to-Use Lease Equipment 138,277 89,029 227,306 -
SBITA 3,328 60,996 - 64,324
Total Accumulated Depreciation/
Amortization 146,857,851 8,010,193 60,555 154,807,489
Total Capital Assets, Being
Depreciated/Amortized, Net 107,184,603 3,732,966 110,917,569 - Government Activities Capital Assets, Net $ 163,065,604 $ 17,667,571 $ 9,386,327 $ 171,346,848

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(52)
NOTE 7 CAPITAL ASSETS (CONTINUED)
Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Business-Type Activities:

Capital Assets, not Being Depreciated/Amortized:

Land and Water Rights $ 3,384,974 $ - $ 3,384,974 - $
Construction in Process 4,974,488 7,400 4,981,888
Total Capital Assets not Being
Depreciated/Amortized 8,359,462 7,400 8,366,862 -
Capital Assets, Being Depreciated/Amortized:

Source of Supply Plant 4,622,244 - 4,622,244 -
Transmission and Distribution Plant 37,607,015 - 37,607,015 - Pumping and Treatment Plant 111,016 - 111,016 -
General Plant 1,096,135 - 1,096,135 -
Right-to-Use Leased Equipment 18,942 - - 18,942
Total Capital Assets, Being
Depreciated/Amortized 43,455,352 - 43,455,352 -
Less Accumulated Depreciation/Amortization:

Source of Supply Plant 2,731,947 87,837 2,819,784 -
Transmission and Distribution Plant 22,828,358 559,420 23,387,778 - Pumping and Treatment Plant 110,625 393 111,018 -
General Plant 1,096,135 - 1,096,135 -
Right-to-Use Leased Equipment 5,682 3,789 - 9,471
Total Accumulated Depreciation/
Amortization 26,772,747 651,439 27,424,186 -
Total Capital Assets, Being
Depreciated/Amortized, Net 16,682,605 (651,439) 16,031,166 - Water Utility Capital Assets, Net $ 25,042,067 $ (644,039) $ 24,398,028 - $ Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental Business-Type
Activities Activities
General Government 816,101 $ - $
Public Safety 1,259,862 -
Community Development 67,948 -
Transportation 4,769,656 -
Culture and Leisure 829,895 -
Human Services 266,731 -
Water Utility - 651,439
Total Governmental Activities 8,010,193 $ 651,439 $

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(53)
NOTE 8 LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the fiscal year ended June 30, 2024:

Balance Balance Due Within
June 30, 2023 Additions Reductions June 30, 2024 One Year Governmental Activities:

Direct Borrowing - Notes Payable:

Fire Engines $ 2,295,114 $ 295,293 - $ $ 1,999,821 $ 305,539 Fire Equipment 2,401,803 463,932 - 1,937,871 472,005
Fire Air and Light Vehicle 90,253 90,253 - - -
Lease Payable 321,915 90,198 - 231,717 91,609
SBITA Payable 351,676 - 68,544 283,132 66,675
Total $ 5,109,085 $ 351,676 $ 1,008,220 $ 4,452,541 $ 935,828 Business-Type Activities:

Water Revenue Bonds Payable:
2013 Series A $ 6,890,000 $ - $ 6,890,000 - $ $ -
2018 Subordinate Bonds 610,000 215,000 - 395,000 220,000 Issuance Discount/Premiums (113,370) - 5,967 (107,403) - Lease Payable 13,413 - 3,758 9,655 3,817
Total $ 7,400,043 $ 224,725 - $ $ 7,187,252 $ 223,817
The total annual debt service requirements to maturity on bonds and loans are as follows:

Year Ending June 30, Principal Interest
2025 $ 777,544 $ 103,113
2026 796,359 84,298
2027 815,685 64,972
2028 835,537 45,120
2029 712,567 37,300
Total $ 3,937,692 $ 334,803
Governmental Activities
Notes Payable
Year Ending June 30, Principal Interest
2025 $ 220,000 $ 265,878
2026 240,000 260,620
2027 300,000 254,488
2028 310,000 245,113
2029 320,000 235,038
2029-2033 1,770,000 1,002,400
2034-2038 2,120,000 651,000
2039-2043 2,005,000 204,200
Total $ 7,285,000 $ 3,118,737
Business-Type Activities
Revenue Bonds

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(54)
NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities
Fire Engines Note Payable
In February 2023, the City entered into a financed purchase agreement for $2,295,114 with Bank of America to purchase two fire engines. Payments are due annually in the amount of $374,933 on February 28 each year at an annual interest rate of 3.47% with the note payable maturing on February 28, 2030. The current balance outstanding for this note payable is $1,999,822.

Fire Equipment Note Payable
In November 2020, the City entered into a financed purchase agreement for $3,306,000 with Bank of America to purchase 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 note payable maturing on November 17, 2027. The current balance outstanding for this note payable is $1,937,871.

Fire Air and Light Vehicle Note Payable
In September 2017, the City entered into a financed purchase agreement for $598,911 with Community First National Bank to purchase 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 note payable maturing on September 1, 2023. This note was paid off as of June 30, 2024.

Lease Payable
The City leases equipment under a noncancelable lease agreement. A portion of this lease is allocated to the Water Fund The lease expires in 2027 and does not have a renewal option. Total future minimum lease payments are as follows:

Year Ending June 30, Principal Interest Principal Interest 2025 91,609 $ 2,950 $ 3,817 $ 123 $
2026 93,043 1,517 3,877 63
2027 47,065 213 1,961 9
Total 231,717 $ 4,680 $ 9,655 $ 195 $
Governmental Activities Business-Type Activities

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(55)
NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
SBITA Payable
The City entered into subscription based-information technology arrangements for a software. The SBITA arrangement expires in 2028. The subscription assets and the related accumulated amortization are detailed in Note 7. The future subscription payments under the SBITA agreement are as follows:

Year Ending June 30, Principal Interest
2025 $ 66,675 $ 8,325
2026 69,342 5,658
2027 72,115 2,885
2028 75,000 -
Total $ 283,132 $ 16,868
Governmental Activities
SBITA Payable
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, 2024, is $6,890,000. 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 $2,921,004 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.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(56)
NOTE 8 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities
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, 2024, is $610,000. 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 $2,921,004 against debt service payments of $229,441.

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.

NOTE 9 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
June 30, 2023 Additions Reductions June 30, 2024 One Year Governmental Activities $ 1,867,524 $ 347,540 $ 318,258 $ 1,896,806 $ 440,000 Business-Type Activities 254,663 47,392 43,399 258,656 60,000 Total Compensated Absences 2,122,187 $ $ 394,932 $ 361,657 $ 2,155,462 $ 500,000

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 10 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 126 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. 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.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools.

CITY OF SANTA FE SPRINGS

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JUNE 30, 2024
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NOTE 10 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY INSURANCE PROGRAM (CONTINUED)
Primary Self-Insurance Programs of the Authority (Continued) 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 2023-24, 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 through reinsurance policies, 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 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 $135,512,752. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.

CITY OF SANTA FE SPRINGS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(59)
NOTE 10 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 $62,694,195. 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 2023-2024.

NOTE 11 PENSION PLAN OBLIGATIONS
a. General Information About the Pension Plan
Plan Description
The City contributes to the California Public Employees Retirement System (CalPERS), 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 Statutes 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.

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JUNE 30, 2024
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NOTE 11 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, 2024, 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% 7.25%
Required Employer Contribution Rates 12.500% 12.500% 7.350% 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% 14.500% Required Employer Contribution Rates 29.090% 24.790% 14.500% *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, 2023, the following employees were covered by the benefit terms of the Miscellaneous Plan:

Number of
Description Members
Active Members 136
Transferred Members 44
Terminated Members 30
Retired Members and Beneficiaries 228
Total 438

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JUNE 30, 2024
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NOTE 11 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, 2024, was $8,157,789 and $6,312,822, 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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the subsequent page.

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JUNE 30, 2024
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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
b. Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The total pension liabilities were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 (3) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter.
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.

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NOTE 11 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. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Assumed
Asset Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-Weighted 30.00 % 4.45 %
Global Equity - Non-Cap-Weighted 12.00 3.84 %
Private Equity 13.00 7.28 %
Treasury 5.00 0.27 %
Mortgage-Backed Securities 5.00 0.50 %
Investment Grade Corporates 10.00 1.56 %
High Yield 5.00 2.27 %
Emerging Market Debt 5.00 2.48 %
Private Debt 5.00 3.57 %
Real Assets 15.00 3.21 %
Leverage (5.00) (0.59)%
Total 100.00 %
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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.

Change in Benefit Terms
In 2022, Senate Bill 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023.

CITY OF SANTA FE SPRINGS

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JUNE 30, 2024
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NOTE 11 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, 2022
(Measurement Date) $ 196,092,030 $ 113,604,295 $ 82,487,735 Changes in the Year:

Service Cost 2,152,473 2,152,473 -
Interest on the Total Pension Liability 13,500,457 13,500,457 - Change in Benefit Terms 127,718 - 127,718
Changes of Assumptions - - -
Differences Between Actual and
Expected Experience 4,491,245 4,491,245 -
Contribution - Employer 7,918,095 - (7,918,095)
Contribution - Employee 1,014,108 - (1,014,108)
Net Investment Income 7,057,512 - (7,057,512)
Administrative Expenses - (83,539) 83,539
Benefit Payments, Including Refunds
of Employee Contributions (12,256,868) (12,256,868) -
Net Changes 8,015,025 3,649,308 4,365,717
Balance at June 30, 2023
(Measurement Date) $ 204,107,055 $ 117,253,603 $ 86,853,452 Increase (Decrease)
As of June 30, 2024, 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 66,691,562 $
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, 2023, 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, 2022, rolled forward to June 30, 2023, 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.

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JUNE 30, 2024
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NOTE 11 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, 2022 and 2023, was as follows:

Safety Cost-Sharing Plan
Proportion - June 30, 2022 0.91734%
Proportion - June 30, 2023 0.89220%
Change - Increase (Decrease) -0.02514%
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 6.90%, 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%

5.90% 6.90% 7.90%
Miscellaneous Plan $ 111,056,315 $ 86,853,452 $ 66,624,602 Safety Plan 93,069,847 66,691,562 45,125,437
Total Net Pension Liability $ 204,126,162 $ 153,545,014 $ 111,750,039 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.

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JUNE 30, 2024
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NOTE 11 PENSION PLAN OBLIGATIONS (CONTINUED)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense of $10,845,513 and $8,635,829 for the Miscellaneous and Safety Plan, respectively, which totals $14,470,611. At June 30, 2024, 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 $ 8,157,789 $ -
Changes of Assumptions 1,555,106 -
Differences Between Expected and
Actual Experience 3,042,456 (933,834)
Net Differences Between Projected and Actual
Earnings on Plan Investments 5,245,933 -
Total $ 18,001,284 $ (933,834)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ 6,312,822 $ -
Difference Between Expected and
Actual Experiences 4,896,390 (419,183)
Change in Assumptions 3,892,209 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 9,126,722 -
Change in Employer's Proportion 549,758 (494,359)
Differences Between the Employer's
Contributions and the Employer's Proportionate
Share of Contributions 638,001 (1,841,204)
Total 25,415,902 (2,754,746)
Total All Plans $ 43,417,186 $ (3,688,580)
Miscellaneous Plan
Safety Plan
$8,157,789 and $6,312,822 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, 2025. Differences between projected and actual investment earnings are amortized on a five-year straight-line basis and all other amounts are amortized over the expected average remaining service lives of all members that are provided with benefits.

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JUNE 30, 2024
(67)
NOTE 11 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 2024 $ 2,952,037 $ 5,015,967 $ 7,968,004
2025 1,894,211 3,683,197 5,577,408
2026 3,930,739 7,394,426 11,325,165
2027 132,675 254,744 387,419
Total $ 8,909,662 $ 16,348,334 $ 25,257,996
Deferred Outflows/(Inflows) of Resources
e. Payable to the Pension Plans
At June 30, 2024, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.

NOTE 12 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, California 95814.

CITY OF SANTA FE SPRINGS

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JUNE 30, 2024
(68)
NOTE 12 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 five 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, 2023, the benefit terms covered the following employees:

Miscellaneous Fire Total
Retirees and Beneficiaries
Receiving Benefits $ 174 $ 99 $ 273
Retirees and Beneficiaries Entitled
to but not yet Receiving Benefits 108 44 152
Active Plan Members 282 143 425
Total $ 564 $ 286 $ 850
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 to the CERBT OPEB trust, in addition to paying benefit payments outside the trust. For the fiscal year ended June 30, 2024, the City contributed $469,000 to the CERBT, paid $3,408,337 for current premiums, and paid $10,029 of nontrust admin expenses, resulting in total contributions of $3,887,366. 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. d. Investments
The CERBT was established for public agencies to pre-fund other postemployment benefit obligations. Employers may choose among 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:

Target
Asset Class Allocation
Global Equity 49.0 %
U.S. Fixed Income 23.0
REITs 20.0
TIPS 5.0
Commodities 3.0
Total 100.0 %

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JUNE 30, 2024
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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) e. Net OPEB Liability
The City’s net OPEB liability as the total OPEB liability, less the plan’s fiduciary net position. The net OPEB liability is measured as of June 30, 2023, using an actuarial valuation as of June 30, 2022. 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:

Discount Rate 6.25%
Inflation 3.10%
Salary Increases 2.80%
Healthcare Cost Trend Rates: 20
2023 Trend (Pre 65 / Post 65) 0.00% / 6.70%
2024 Trend (Pre 65 / Post 65) 0.00% / 4.54%
Ultimate Trend 4.54%
Year Ultimate Trend is Reached
(Pre 65 / Post 65) 2090 / 2024
Mortality Rates Public Agency - Post-Retirement Mortality - SOA Scale MP-2020 Base Year 2018, Public Agency Miscellaneous -
Pre-Retirement Mortality - SOA Scale MP-2020 Base
Year 2018, and Public Agency Safety / Fire -
Pre-Retirement Mortality - SOA Scale MP-2020 Base
Year 2018.

The actuarial assumptions used in the June 30, 2022, valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.

The City holds the presumption that the CalPERS medical plan and its premium structure are sustainable over the measurement period, even if other groups or active participants cease to participate and has selected to incorporate that opinion as an assumption in its valuation. The actuary incorporated this assumption and has applied the Actuarial Standard of Practice No. 6 section 3.7.7(c)(4) exception and performed the valuation based on the direct premium rates charged by CalPERS without regard to adjustments for age, thereby resulting in no liability due to an implied rate subsidy. f. Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. 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.

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JUNE 30, 2024
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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) g. Changes in the Net OPEB Liability
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, 2022
(Measurement Date) $ 64,552,170 $ 26,312,462 $ 38,239,708 Changes Recognized for the
Measurement Period:

Service Cost 1,204,768 1,204,768 -
Interest on Total OPEB Liability 3,128,602 3,128,602 -
Changes of Assumptions (12,557,072) (12,557,072) -
Difference Between
Actual vs. Expected Experience (1,351,973) (1,351,973) - Contributions-Employer 4,211,515 - (4,211,515)
Net Investment Income 1,734,112 - (1,734,112)
Benefit Payments, Including Refunds
of Employee Contributions (3,580,515) (3,580,515) -
Administrative Expense - (7,718) 7,718
Net Changes (13,156,190) 2,357,394 (15,513,584)
Balance at June 30, 2023
(Measurement Date) $ 51,395,980 $ 28,669,856 $ 22,726,124 Increase (Decrease)
h. Change in Assumptions
Initial trend rates were advanced and the model for trends in subsequent years is based on the Getzen Model as updated through October 2023. The payroll growth rate was increased form 2.75% to 2.80%.

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JUNE 30, 2024
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NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) i. 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%

5.25% 6.25% 7.25%
Net OPEB Liability $ 29,703,753 $ 22,726,124 $ 16,932,500 j. 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%

0.00% / 5.70% 0.00% / 6.70% 1.00% / 7.70%
Net OPEB Liability 16,306,311 $ 22,726,124 $ 30,669,730 $ k. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB gain of $1,929,298. At June 30, 2024, 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 $ 3,570,152 $ -
Differences Between Expected and Actual
Experience - (2,979,464)
Changes of Assumptions 222,027 (10,158,611)
Net Difference Between Projected and Actual
Earnings on Plan Investments 1,793,678 -
Total $ 5,585,857 $ (13,138,075)

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JUNE 30, 2024
(72)
NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS (CONTINUED) k. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
$3,570,152 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, 2025. 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
2025 (3,546,374) $
2026 (3,396,347)
2027 (1,668,277)
2028 (2,511,372)
Total (11,122,370) $
NOTE 13 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 14 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(73)
NOTE 15 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, 2024, is $1,045,000.

NOTE 16 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, 2023 Additions Reductions June 30, 2024
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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(74)
NOTE 16 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, 2024:

Balance Balance Due Within
June 30, 2023 Additions Reductions June 30, 2024 One Year Private-Purpose Activities:

Consolidated Redevelopment
Project Tax Allocation Bonds:
2006 Issue $ 17,027,773 $ - $ 5,624,491 $ 11,403,282 $ 4,253,770 Accreted Interest on
Capital Appreciation Bonds 18,616,344 - 4,999,843 13,616,501 - 2016 Refunding Issue 1,480,000 - 735,000 745,000 745,000 Issuance Discounts/Premiums (45,934) - 15,312 (30,622) - Direct Borrowings:

Tax Increment Loan from
Los Angeles County 6,144,414 169,957 201,856 6,112,515 - Total $ 43,222,597 $ 169,957 $ 11,576,502 $ 31,846,676 $ 4,998,770 Year Ending June 30, Principal Interest
2025 $ 4,998,770 $ 8,381
2026 4,040,748 -
2027 2,069,997 -
2028 1,038,767 -
Total 12,148,282 $ 8,381
Cumulative Accretion Interest
on Capital Appreciation Bonds 13,616,501
Total Principal, June 30, 2024 $ 25,764,783
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 noncallable. 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(75)
NOTE 16 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, 2024, is $25,019,783 including $13,616,501 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

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(76)
NOTE 16 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, 2024 is $97,478, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. 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, 2024, is $745,000.

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, 2024, is $6,112,515.
(77)

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF SANTA FE SPRINGS

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Required Supplementary Information. (78)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 73,169,500 $ 76,069,500 $ 81,562,279 $ 5,492,779 Licenses and Permits 2,840,400 2,900,400 3,685,156 784,756 Intergovernmental 1,003,400 1,003,400 1,013,587 10,187
Charges for Services 6,113,100 6,332,100 7,517,518 1,185,418 Use of Money and Property 2,182,000 2,182,000 7,367,932 5,185,932 Rentals 1,877,100 1,877,100 2,103,157 226,057
Fines and Forfeitures 432,000 432,000 772,530 340,530
Contributions 118,700 118,700 258,116 139,416
Miscellaneous 744,900 744,900 1,533,425 788,525
Total Revenues 88,481,100 91,660,100 105,813,700 14,153,600

EXPENDITURES
General Government 12,494,400 12,993,500 10,812,851 2,180,649 Public Safety 40,564,600 40,734,500 39,447,134 1,287,366 Community Development 4,399,400 4,329,100 3,540,981 788,119 Public Works 15,971,500 16,582,700 14,839,359 1,743,341 Culture and Leisure 7,628,200 8,162,400 7,861,333 301,067 Human Services 2,147,800 2,147,800 2,207,919 (60,119)
Capital Outlay 4,612,300 4,762,300 1,656,202 3,106,098
Debt Service:

Principal Retirement 850,000 850,000 1,008,219 (158,219) Interest and Fiscal Charges 125,000 125,000 134,763 (9,763) Total Expenditures 88,793,200 90,687,300 81,508,761 9,178,539

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (312,100) 972,800 24,304,939 23,332,139

OTHER FINANCING SOURCES (USES)
Transfers In 4,655,828 4,680,828 3,350,469 (1,330,359)
Transfers Out (4,104,828) (4,104,828) (7,290,190) (3,185,362) Issuance of SBITA Payable - - 351,676 351,676
Sale of Capital Asset 5,000 5,000 34,215 29,215
Total Other Financing
Sources (Uses) 556,000 581,000 (3,553,830) (4,134,830)
NET CHANGE IN FUND BALANCE 243,900 1,553,800 20,751,109 19,197,309 Fund Balance - Beginning of Year 100,439,634 100,439,634 100,439,634 - FUND BALANCE - END OF YEAR $ 100,683,534 $ 101,993,434 $ 121,190,743 $ 19,197,309 Budgeted Amounts

CITY OF SANTA FE SPRINGS

BUDGETARY COMPARISON SCHEDULE

LOW AND MODERATE INCOME HOUSING ASSETS FUND
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Required Supplementary Information. (79)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Use of Money and Property - $ $ - $ 204,640 $ 204,640
Miscellaneous - - 16,548 (16,548)
Total Revenues - - 221,188 188,092

EXPENDITURES
Community Development 253,000 253,000 1,459,966 (1,206,966) Total Expenditures 253,000 253,000 1,459,966 (1,206,966) NET CHANGE IN FUND BALANCE (253,000) (253,000) (1,238,778) (1,018,874) Fund Balance - Beginning of Year 11,053,683 11,053,683 11,053,683 - FUND BALANCE - END OF YEAR $ 10,800,683 $ 10,800,683 $ 9,814,905 $ (1,018,874) Budgeted Amounts

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

LAST TEN FISCAL YEARS
(80)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service Cost $ 2,152,473 $ 1,970,794 $ 1,766,312 $ 1,567,189 $ 1,609,236 Interest on Total Pension Liability 13,500,457 12,966,728 13,033,238 12,629,742 12,378,733 Differences Between Expected and
Actual Experience 4,491,245 (3,009,015) 2,313,861 268,043 2,131,720 Changes in Assumptions 5,010,900 - - - -
Changes in Benefit Terms 127,718 - - - -
Benefit Payments, Including Refunds of
Employee Contributions (12,256,868) (11,567,406) (10,958,843) (10,975,249) (10,473,500) Net Change in Total Pension Liability 8,015,025 5,372,001 6,154,568 3,489,725 5,646,189 Total Pension Liability - Beginning of Year 196,092,030 190,720,029 184,565,461 181,075,736 175,429,547 Total Pension Liability - End of Year (a) $ 204,107,055 $ 196,092,030 $ 190,720,029 $ 184,565,461 $ 181,075,736 Plan Fiduciary Net Position:

Contributions - Employer $ 7,918,095 $ 7,068,656 $ 6,557,278 $ 5,957,285 $ 5,182,712 Contributions - Employee 1,014,108 930,374 911,222 855,704 783,946 Net Investment Income 7,057,512 (9,636,898) 24,174,117 5,199,591 6,740,766 Benefit Payments (12,256,868) (11,567,406) (10,958,843) (10,975,249) (10,473,500) Net Plan to Plan Resource Movement - - - - -
Other Miscellaneous Income (Expense) - - - - 242
Administrative Expense (83,539) (79,044) (106,198) (148,620) (73,690) Net Change in Plan Fiduciary Net Position 3,649,308 (13,284,318) 20,577,576 888,711 2,160,476 Plan Fiduciary Net Position -
Beginning of Year 113,604,295 126,888,613 106,311,037 105,422,326 103,261,850 Plan Fiduciary Net Position -
End of Year (b) $ 117,253,603 $ 113,604,295 $ 126,888,613 $ 106,311,037 $ 105,422,326 Net Pension Liability - Ending (a)-(b) $ 86,853,452 $ 82,487,735 $ 63,831,416 $ 78,254,424 $ 75,653,410 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 57.45% 57.93% 66.53% 57.60% 58.22% Covered Payroll $ 11,947,551 $ 10,510,114 $ 9,998,155 $ 9,185,973 $ 8,249,634 Net Pension Liability as Percentage of
Covered Payroll 726.96% 784.84% 638.43% 851.89% 917.05% Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2023 to June 30, 2024:

There were no changes in benefits.

Benefit Changes:

From fiscal year June 30, 2022 to June 30, 2023:

From fiscal year June 30, 2019 to June 30, 2022:

There were no changes in assumptions.

The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from

2.50% to 2.30%.

There were no changes in assumptions.

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED)

LAST TEN FISCAL YEARS
(81)
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) - - Changes in Benefit Terms - - - - -
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 $ 4,673,836 $ 4,174,840 $ 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:

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.

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.

CITY OF SANTA FE SPRINGS

MISCELLANEOUS PLAN

SCHEDULE OF CONTRIBUTIONS

LAST TEN FISCAL YEARS
(82)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Contractually Required Contribution
(Actuarially Determined) $ 7,870,770 8,157,789 $ 7,068,663 $ 6,557,278 $ 5,952,729 $ Contributions in Relation to
the Actuarially Determined
Contributions (7,870,770) (8,157,789) (7,068,663) (6,557,278) (5,952,729) Contribution Deficiency (Excess) $ - - $ - $ - $ - $
Covered Payroll $ 11,947,551 13,920,715 $ 10,510,114 $ 9,998,155 $ 9,185,973 $ Contributions as a Percentage
of Covered Payroll 58.60% 65.88% 67.26% 65.58% 64.80%
Notes to Schedule:

Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 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 Fair Value Inflation 2.300% 2.500% 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.80% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 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

MISCELLANEOUS PLAN

SCHEDULE OF CONTRIBUTIONS (CONTINUED)

LAST TEN FISCAL YEARS
(83)
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 Fair
Value 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.
(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

COST SHARING SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

LAST TEN FISCAL YEARS
(84)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Plan’s Proportion of the
Net Pension Liability 0.89220% 0.91734% 1.08803% 0.82961% 0.81779% Plan’s Proportionate Share
of the Net Pension Liability $ 66,691,562 $ 63,035,973 $ 38,184,110 $ 55,271,784 $ 51,050,543 Plan’s Covered Payroll $ 7,031,317 $ 6,764,920 $ 6,644,007 $ 6,934,844 $ 6,607,330 Plan’s Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 948.49% 931.81% 574.72% 797.02% 772.63% Plan’s Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plan’s Total 65.32% 66.21% 78.59% 68.36% 75.26% Pension Liability
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2019 to June 30, 2022:

The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from

2.50% to 2.30%.

From fiscal year June 30, 2023 to June 30, 2024:

There were no changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

CITY OF SANTA FE SPRINGS

COST SHARING SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED)

LAST TEN FISCAL YEARS
(85)
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 $ 47,522,971 $ 46,817,505 $ 41,147,225 $ 32,094,633 $ 26,382,020 Plan’s Covered Payroll $ 6,994,713 $ 6,971,540 $ 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:

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

COST SHARING SAFETY PLAN

SCHEDULE OF CONTRIBUTIONS

LAST TEN FISCAL YEARS
(86)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Contractually Required Contribution
(Actuarially Determined) $ 5,870,803 6,312,822 $ 5,345,973 $ 4,786,061 $ 4,372,591 $ Contributions in Relation to
the Actuarially Determined
Contributions (6,312,822) (5,870,803) (5,345,973) (4,786,061) (4,372,591) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 7,736,367 $ 7,031,317 $ 6,764,920 $ 6,644,007 $ 6,934,844 Contributions as a Percentage
of Covered Payroll 81.60% 83.50% 79.02% 72.04% 63.05%
Notes to Schedule:

Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 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 Fair Value Inflation 2.300% 2.500% 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.80% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 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

COST SHARING SAFETY PLAN

SCHEDULE OF CONTRIBUTIONS (CONTINUED)

LAST TEN FISCAL YEARS
(87)
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 Fair
Value 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.
(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

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
(88)
Fiscal Year Ended June 30, 2024 June 30, 2023
Measurement Date June 30, 2023 June 30, 2022
Total OPEB Liability:

Service Cost $ 984,226 1,204,768 $
Interest on Total OPEB Liability 3,619,578 3,128,602
Changes of Benefit Terms 4,802,768 -
Differences Between
Expected and Actual Experience - (1,351,973)
Changes of Assumptions - (12,557,072)
Benefit Payments (3,566,828) (3,580,515)
Net Change in Total OPEB Liability 5,839,744 (13,156,190) Total OPEB Liability - Beginning of Year 64, 58,712,426 552,170 Total OPEB Liability - End of Year (a) 51,395,980 $ 64,552,170 $ Plan Fiduciary Net Position:

Contributions - Employer $ 4,183,089 4,211,515 $
Net Investment Income (4,051,230) 1,734,112
Benefit Payments (3,566,828) (3,580,515)
Administrative Expenses (14,857) (7,718)
Net Change in Plan Fiduciary Net Position 2,357,394 (3,449,826) Plan Fiduciary Net Position -
Beginning of Year 29,762,288 26,312,462
Plan Fiduciary Net Position - End of Year (b) $ 26,312,462 28,669,856 $ Net OPEB Liability - Ending (a)-(b) $ 38,239,708 22,726,124 $ Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 55.78% 40.76%
Covered - Employee Payroll $ 21,555,073 22,159,644 $
Net OPEB Liability as Percentage of
Covered - Employee Payroll 102.56% 177.40%
Notes to Schedule:

From fiscal year June 30, 2022 to June 30, 2023:

Changes in Assumptions:

From fiscal year June 30, 2021 to June 30, 2022:

From fiscal year June 30, 2022 to June 30, 2023:
* Fiscal year 2018 was the first year of implementation and therefore only seven years are shown.

MP-2021.

Senior Advantage, Medicare Advantage plan implied subsidy excluded, mortality improvement scale updated to Scale Decreased inflation reduced discount rate, medical trend, and salary increases, decreased medical trend rate for Kaiser Initial trend rates were advanced and the model for trends in subsequent years is based on the Getzen Model as updated through October 2023. The payroll growth rate was increased form 2.75% to 2.80%. equal to the PORAC Family non-Medicare premium (CalPERS Region 3).

Benefit Changes:

Effective 1/1/22, the Miscellaneous cap is set equal to the Kaiser Family non-Medicare premium, and the Fire cap is set

CITY OF SANTA FE SPRINGS

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN FISCAL YEARS*
(89)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability:

Service Cost 978,905 $ 966,145 $ 1,105,368 $ 1,073,173 $ 1,042,000 $ Interest on Total OPEB Liability 4,094,287 4,051,589 4,408,354 4,254,334 4,100,000 Changes of Benefit Terms - - (24,586) - -
Differences Between
Expected and Actual Experience - (4,911,693) (7,005,009) - - Changes of Assumptions 572,595 (1,048,245) (397,546) - - Benefit Payments (3,397,735) (3,301,649) (3,163,861) (2,992,000) (2,786,000) Net Change in Total OPEB Liability (2,663,641) 667,840 (5,077,280) 2,335,507 2,356,000 Total OPEB Liability - Beginning of Year 61,376,067 60,708,227 65,785,507 63,450,000 61,094,000 Total OPEB Liability - End of Year (a) $ 58,712,426 $ 61,376,067 $ 60,708,227 $ 65,785,507 $ 63,450,000 Plan Fiduciary Net Position:

Contributions - Employer $ 5,011,731 $ 5,033,207 $ 4,995,349 $ 4,616,000 $ 5,223,000 Net Investment Income 6,178,247 793,628 1,101,136 1,119,324 1,216,000 Benefit Payments (3,397,735) (3,301,649) (3,163,861) (2,992,000) (2,786,000) Administrative Expenses (15,517) (17,396) (10,164) (26,012) (6,000) Net Change in Plan Fiduciary Net Position 7,776,726 2,507,790 2,922,460 2,717,312 3,647,000 Plan Fiduciary Net Position -
Beginning of Year 21,985,562 19,477,772 16,555,312 13,838,000 10,191,000 Plan Fiduciary Net Position - End of Year (b) $ 29,762,288 $ 21,985,562 $ 19,477,772 $ 16,555,312 $ 13,838,000 Net OPEB Liability - Ending (a)-(b) $ 28,950,138 $ 39,390,505 $ 41,230,455 $ 49,230,195 $ 49,612,000 Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability 50.69% 35.82% 32.08% 25.17% 21.81% Covered - Employee Payroll $ 19,983,477 $ 18,008,437 $ 17,127,695 $ 19,257,018 $ 18,626,195 Net OPEB Liability as Percentage of
Covered - Employee Payroll 144.87% 218.73% 240.72% 255.65% 266.36% Notes to Schedule:

Changes in Assumptions:

Removal of ACA Excise Tax.
* Fiscal year 2018 was the first year of implementation and therefore only seven 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, 2019 to June 30, 2020:

Life insurance benefit for grandfathered retirees was terminated.

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

7.50% non-Medicare and 6.50% Medicare to 7.25% non-Medicare and 6.30% Medicare.

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

From fiscal year June 30, 2020 to June 30, 2022:

There were no changes in benefits.

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:

CITY OF SANTA FE SPRINGS
SCHEDULE OF CONTRIBUTIONS—OPEB
LAST TEN FISCAL YEARS*
(90)
Fiscal Year Ended June 30, 2024 June 30, 2023
Actuarially Determined Contribution $ 4,229,000 6,579,931 $ Contributions in Relation to the
Actuarially Determined Contributions (3,887,366) (4,220,985) Contribution Deficiency (Excess) $ 8,015 2,692,565 $
Covered - Employee Payroll $ 22,159,644 20,648,719 $
Contributions as a Percentage of
Covered - Employee Payroll 18.83% 19.05%
Notes to Schedule:

Valuation Date 6/30/2022 6/30/2021
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age
Amortization Method (1) (1)
Amortization Period 15 year 16.1 year fixed
Asset Valuation Method (2) (2)
Discount Rate 6.25% 6.25%
Inflation 3.10% 2.50%
Healthcare Trend Rates (9) (7)
Mortality (10) (8)
(7) Non-Medicare 6.5%, Medicare (Non-Kaiser) 5.65%., Medicare (Kaiser) 4.6%. Decreasing to an ultimate rate of 3.75% in 2076. (9) 2023 trend pre 65/post 65 - 0.00%/6.70%. 2024 trend pre 65/post 65 - 0.00%/4.54%. Ultimate trend 4.54% is reached 2090/2024. * Fiscal year 2018 was the first year of implementation and therefore only seven years are shown. (1) Level percentage of payroll.
(2) Investment gains/losses spread over 5-year rolling period. (8) CalPERS 2000-2019 experience study.
(10) Public Agency - Post-Retirement Mortality - SOA Scale MP-2020 Base Year 2018, Public Agency Miscellaneous - Pre-Retirement Mortality - SOA Scale MP-2020 Base Year 2018, and Public Agency Safety / Fire - Pre-Retirement Mortality - SOA Scale MP-2020 Base Year 2018.

CITY OF SANTA FE SPRINGS
SCHEDULE OF CONTRIBUTIONS—OPEB (CONTINUED)
LAST TEN FISCAL YEARS*
(91)
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially Determined Contribution 4,266,000 $ 4,141,000 $ 5,047,000 $ 4,900,000 $ 4,737,000 $ Contributions in Relation to the
Actuarially Determined Contributions (4,183,089) (5,074,731) (5,033,207) (4,995,349) (4,616,000) Contribution Deficiency (Excess) 82,911 $ (933,731) $ 13,793 $ (95,349) $ 121,000 $ Covered - Employee Payroll 21,555,073 $ 19,983,477 $ 18,008,437 $ 17,127,695 $ 19,257,018 $ Contributions as a Percentage of
Covered - Employee Payroll 19.41% 25.39% 27.95% 29.17% 23.97% Notes to Schedule:

Valuation Date 6/30/2019 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 Entry age Amortization Method (1) (1) (1) (1) (1)
Amortization Period 23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
23-year fixed
(closed)
Asset Valuation Method (2) (2) (2) (2) (2)
Discount Rate 6.75% 6.75% 6.75% 6.75% 7.25%
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Healthcare Trend Rates (4) (4) (4) (4) (3)
Mortality (6) (6) (6) (6) (5)
* Fiscal year 2018 was the first year of implementation and therefore only seven years are shown. (5) CalPERS 1997-2011 experience study.
(6) CalPERS 1997-2015 experience study.
(1) Level percentage of payroll.
(2) Investment gains/losses spread over 5-year rolling period. (3) Non-Medicare 7.5%, Medicare 6.5%. Decreasing to an ultimate rate of 4% in 2076. (4) Non-Medicare 7.25%, Medicare 6.3%. Decreasing to an ultimate rate of 4% in 2076.

CITY OF SANTA FE SPRINGS

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
(92)
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 accounting principles generally accepted in the United States of America, 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

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS
(93)
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

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
(94)
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.

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.
(95)
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CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET—

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(96)
Heritage
Street Springs
County Lighting Street Art in
State Transit Maintenance Maintenance Public
Gas Tax Tax District District Places
ASSETS
Pooled Cash and Investments $ 759,813 $ 5,020,621 $ 226,688 $ 183,007 $ 2,167,812 Receivables:

Accounts - - - - -
Notes and Loans - - - - -
Due from Other Governments 179,102 98,542 3,274 - -
Due from other Funds - - - - -
Total Assets $ 938,915 $ 5,119,163 $ 229,962 $ 183,007 $ 2,167,812

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ - $ - $ - $ - $ -
Accrued Liabilities - - - - -
Unearned Revenues - 14,100 - - -
Due to Other Funds - - - - -
Total Liabilities - 14,100 - - -

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 938,915 5,105,063 229,962 183,007 -
Art in Public Places - - - - 2,167,812
Unassigned - - - - -
Total Fund Balances 938,915 5,105,063 229,962 183,007 2,167,812 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances 938,915 $ 5,119,163 $ 229,962 $ 183,007 $ 2,167,812 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET—

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024
(97)
Community
Business Air Development Public
License Quality Block Fire Safety
Surcharge Improvement Grant Grants Augmentation
ASSETS
Pooled Cash and Investments $ 94,683 $ 161,212 $ 4,699 $ - $ - Receivables:

Accounts 713 - - - -
Notes and Loans - - - - -
Due from Other Governments - 6,248 13,500 1,213,907 42,429 Due from other Funds - - - - -
Total Assets $ 95,396 $ 167,460 $ 18,199 $ 1,213,907 $ 42,429

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ - $ - $ 15,852 $ 40,364 $ -
Accrued Liabilities - - 2,347 - -
Unearned Revenues - - - - -
Due to Other Funds - - 1,205,865 - 42,429
Total Liabilities - - 18,199 1,246,229 42,429

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 749,157 - -
Total Deferred Inflows
of Resources - - 749,157 - -

FUND BALANCES
Nonspendable:

Permanent Fund Principal - - - - -
Restricted for:

Community Development Projects 95,396 - - - -
Public Safety - - - - -
Public Works - 167,460 - - -
Art in Public Places - - - - -
Unassigned - - - (781,479) -
Total Fund Balances 95,396 167,460 - (781,479) -
Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances 95,396 $ 167,460 $ 18,199 $ 1,213,907 $ 42,429 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET—

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024
(98)
Community Transportation
Supplemental Development Center
Law Block Grant Narcotics Expansion
Enforcement Program Forfeitures/ Parking
Services Income Seizures Lot Fund Measure W
ASSETS
Pooled Cash and Investments $ 4,513 $ 126,966 - $ $ 41,003 $ 5,982,751 Receivables:

Accounts - - - - -
Notes and Loans - 19,250 - - -
Due from Other Governments - - - - -
Due from other Funds - - - - -
Total Assets $ 4,513 $ 19,250 $ 126,966 $ 41,003 $ 5,982,751

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ - $ - $ - $ - $ 610
Accrued Liabilities - - - - -
Unearned Revenues - - - - -
Due to Other Funds - - - - -
Total Liabilities - - - - 610

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

FUND BALANCES
Nonspendable:

Permanent Fund Principal - - - - -
Restricted for:

Community Development Projects - 19,250 - - -
Public Safety 4,513 - 126,966 - -
Public Works - - - 41,003 5,982,141
Art in Public Places - - - - -
Unassigned - - - - -
Total Fund Balances 4,513 19,250 126,966 41,003 5,982,141 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances 4,513 $ 19,250 $ 126,966 $ 41,003 $ 5,982,751 $ Special Revenue Funds

CITY OF SANTA FE SPRINGS
COMBINING BALANCE SHEET—

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024
(99)
Permanent
Fund
Heritage
Art Total
Education Nonmajor
Endowment Governmental
Fund Funds
ASSETS
Pooled Cash and Investments 492,864 $ 15,266,632 $
Receivables:

Accounts - 713
Notes and Loans - 19,250
Due from Other Governments - 1,557,002
Due from other Funds - -
Total Assets 492,864 $ 16,843,597 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable - $ 56,826 $
Accrued Liabilities - 2,347
Unearned Revenues - 14,100
Due to Other Funds - 1,248,294
Total Liabilities - 1,321,567

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 749,157
Total Deferred Inflows
of Resources - 749,157

FUND BALANCES
Nonspendable:

Permanent Fund Principal 244,676 244,676
Restricted for:

Community Development Projects - 114,646
Public Safety - 131,479
Public Works - 12,647,551
Art in Public Places 248,188 2,416,000
Unassigned - (781,479)
Total Fund Balances 492,864 14,772,873
Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances 492,864 $ 16,843,597 $

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES—NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(100)
Heritage
Street Springs
County Lighting Street Art in
State Transit Maintenance Maintenance Public
Gas Tax Tax District District Places

REVENUES
Taxes - $ $ - $ - $ - $ -
Intergovernmental 997,443 1,569,031 194,709 - -
Use of Money and Property 30,121 173,024 7,338 - 81,294 Contributions - - - 806,705 -
Miscellaneous - - - - -
Total Revenues 1,027,564 1,742,055 202,047 887,999 -

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - - - -
Community Development - - - - -
Public Works - - - - -
Culture and Leisure - - - - -
Capital Outlay - - - - -
Total Expenditures - - - - -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,027,564 1,742,055 202,047 - 887,999

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out (1,063,758) (848,450) (183,000) (611,876) - Total Other Financing
Sources (Uses) (1,063,758) (848,450) (183,000) - (611,876) NET CHANGE IN FUND BALANCES (36,194) 893,605 19,047 - 276,123 Fund Balances - Beginning of Year 975,109 4,211,458 210,915 183,007 1,891,689 FUND BALANCES - END OF YEAR $ 938,915 $ 5,105,063 $ 229,962 $ 183,007 $ 2,167,812 Special Revenue Funds

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES—NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024
(101)
Community
Business Air Development Public
License Quality Block Fire Safety
Surcharge Improvement Grant Grants Augmentation

REVENUES
Taxes 6,260 $ - $ - $ - $ 240,579 $
Intergovernmental - 24,979 60,182 964,124 -
Use of Money and Property - 8,574 - - -
Contributions - - - - -
Miscellaneous - - - - -
Total Revenues 6,260 33,553 60,182 964,124 240,579

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - - 423,375 -
Community Development - - 32,182 - -
Public Works - 2,100 - - -
Culture and Leisure - - 28,000 - -
Capital Outlay - 116,752 - 825,466 -
Total Expenditures - 118,852 60,182 1,248,841 -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (85,299) 6,260 - (284,717) 240,579

OTHER FINANCING SOURCES (USES)
Transfers In - - - 144 -
Transfers Out - - - (240,579) -
Total Other Financing
Sources (Uses) - - - 144 (240,579)
NET CHANGE IN FUND BALANCES 6,260 (85,299) (284,573) - - Fund Balances - Beginning of Year 89,136 252,759 (496,906) - - FUND BALANCES - END OF YEAR $ 95,396 $ 167,460 $ (781,479) - $ $ - Special Revenue Funds

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES—NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024
(102)
Community Transportation
Supplemental Development Center
Law Block Grant Narcotics Expansion
Enforcement Program Forfeitures/ Parking
Services Income Seizures Lot Fund Measure W

REVENUES
Taxes $ - $ - $ - $ - $ -
Intergovernmental 186,159 - 2,984 1,447,171 -
Use of Money and Property 4,512 - 4,507 194,581 -
Contributions - - - - -
Miscellaneous - - - - -
Total Revenues 190,671 - 7,491 1,641,752 -

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - - - -
Community Development - - - - -
Public Works - - - 101,994 -
Culture and Leisure - - - - -
Capital Outlay - - - - -
Total Expenditures - - - 101,994 -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 190,671 - 7,491 1,539,758 -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out (190,540) - - - -
Total Other Financing
Sources (Uses) (190,540) - - - -
NET CHANGE IN FUND BALANCES 131 - 7,491 1,539,758 -
Fund Balances - Beginning of Year 4,382 19,250 119,475 41,003 4,442,383 FUND BALANCES - END OF YEAR $ 4,513 $ 19,250 $ 126,966 $ 41,003 $ 5,982,141 Special Revenue Funds

CITY OF SANTA FE SPRINGS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES—NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024
(103)
Permanent
Fund
Heritage
Art Total
Education Nonmajor
Endowment Governmental
Fund Funds

REVENUES
Taxes - $ 246,839 $
Intergovernmental - 5,446,782
Use of Money and Property 17,595 521,546
Contributions - 806,705
Miscellaneous - -
Total Revenues 17,595 7,021,872

EXPENDITURES
Current:

General Government - -
Public Safety - 423,375
Community Development - 32,182
Public Works - 104,094
Culture and Leisure - 28,000
Capital Outlay - 942,218
Total Expenditures - 1,529,869

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,492,003 17,595

OTHER FINANCING SOURCES (USES)
Transfers In - 144
Transfers Out - (3,138,203)
Total Other Financing
Sources (Uses) - (3,138,059)
NET CHANGE IN FUND BALANCES 2,353,944 17,595
Fund Balances - Beginning of Year 475,269 12,418,929
FUND BALANCES - END OF YEAR $ 14,772,873 492,864 $