City of Santa Paula
City Council
MAYOR PEDRO A. CHAVEZ
VICE MAYOR CARLOS JUAREZ
COUNCILMEMBER JENNY CROSSWHITE
COUNCILMEMBER LESLIE CORNEJO
COUNCILMEMBER GABRIELA ORNELAS
CITY COUNCIL REGULAR MEETING OF THE
SANTA PAULA CITY COUNCIL
WEDNESDAY, SEPTEMBER 17, 2025
6:30 PM - City Council Regular Meeting
SANTA PAULA CITY HALL
970 VENTURA STREET
SANTA PAULA, CA 93060
JULIE LATSHAW, CITY CLERK
DAN SINGER, CITY MANAGER
MONICA CASTILLO, CITY ATTORNEY
City of Santa Paula - City Council - City Council Regular Meeting 1
CITY COUNCIL REGULAR MEETING
You are invited to participate in all Regular City Council meetings. Agendas are posted in the front of Santa Paula City Hall, 970 Ventura Street, Santa Paula, 72 hours in advance of the scheduled meetings. The City Council's regular meetings start at 6:30 p.m. the first and third Wednesday of each month in the City Hall Council Chambers located at 970 Ventura Street in Santa Paula. Special and Closed Sessions vary by date and time.
HOW TO PARTICIPATE IN PERSON DURING THE MEETING: If you wish to speak at a City Council meeting, please fill out a Public Comment Form noting your name and address and submit the form to the City Clerk. Include the Agenda item number, when appropriate. Public comments are limited to 3 minutes.
1. Items Not on the Agenda: If you wish to discuss an item which is not scheduled on the Agenda, you may address the City Council during Public Comment. Please realize that due to the limitations placed on the City Council by provisions of the California Government Code, the City Council ordinarily cannot take action on any item that is not on the agenda. Because of these restrictions, expect that matters that you identify during public comment may be referred to staff or considered on a future agenda.
2. Agenda Items: Items being considered by the City Council may appear on the Consent Calendar, as an Action Item, or as a Public Hearing. Public comments on each type of item are handled differently, as explained below:
a. For items appearing on the Consent Calendar, please submit a Public Comment Form before the Council takes action on the Consent Calendar. Items that receive a Public Comment Form may be pulled from the Consent Calendar by the Mayor and discussed separately by the City Council.
b. For items appearing as an Action Item, the Mayor will announce the Agenda item and request the staff report, the staff member responsible will give a brief summary of the report; the City Council will have an opportunity to ask questions of staff; members of the public will be given an opportunity to comment on the item and ask additional questions (all members of the public should speak directly into the microphone at the speaker’s platform); and the City Council will discuss the item and then take appropriate action.
c. For items on which a Public Hearing is scheduled, the Mayor will open the public hearing and receive the staff report; members of the public will be given an opportunity to comment on the item and ask additional questions (all members of the public should speak directly into the microphone at the speaker’s platform); the City Council will discuss the item; and the Mayor will close the public hearing after City Council action.
HOW TO PARTICIPATE BEFORE THE MEETING: Members of the public are encouraged to submit email correspondence on any agenda item by sending an email to [email protected]. All public correspondence received by 3:00 p.m. (PT) on the meeting date will be provided to the legislative body before the meeting. Public Comments received after 3:00 p.m. will be provided to the legislative body the next day.
Your Participation in this meeting is in the public domain; meetings are cablecast; minutes of this meeting will reflect your participation in this meeting and are posted on the city’s website.
PLEASE NOTE: Be advised that if you bring a legal challenge to an action, you may be limited to raising only those issues you or someone else raised at the meeting described in this Agenda, or in written correspondence delivered to the City Council at or before the meeting.
Any action is subject to the ninety-day time period set forth in Code of Civil Procedure § 1094.6.
City of Santa Paula - City Council - City Council Regular Meeting 2
1. CALL TO ORDER
REMINDER: in order to minimize distractions during public meetings, all personal communication devices should be turned off or put in a non-audible mode.
2. INVOCATION
3. FLAG SALUTE
4. ROLL CALL
5. CLOSED SESSION REPORT
6. PUBLIC COMMENT
At this time, members of the public may comment on any item not appearing on the agenda that is within the subject-matter jurisdiction of the City Council. A Public Comment Form must be submitted to the City Clerk prior to the beginning of the Public Comment period in order to be recognized to speak. Individuals submitting Public Comment Forms after the beginning of the Public Comment period will not be allowed to speak at this time, but may be recognized to speak by the Mayor at the conclusion of the meeting. Individual Councilmembers may briefly respond to Public Comments or ask questions for clarification. The City Council may direct the City Manager to report to the City Council on the item at a later meeting. For items appearing on the Agenda, the public will be invited to make comments at the time the item comes up for City Council consideration. If a member of the public wishes to address a Consent Calendar item, please submit a Public Comment Form for that item. It may then be discussed separately by the Council, and the public will be invited to make comments at that time. At all times, please use the microphone and write your name and address on the Public Comment Form provided.
7. PRESENTATIONS
7.A SCOUTING AMERICA RECOGNITION - SANTA PAULA TROOP 304
7.B VENTURA COUNTY MUSEUM CHANGES IN OPERATIONS
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (805) 933-4208. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35, 102-35.104 ADA Title II). Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s office.
HOW TO VIEW ON YOUR TELEVISION, COMPUTER, OR MOBILE DEVICE: Watch from home live on the local Channel 10, or view the live feed on the city website at the following link: https://www.spcity.org/523/Public-Meeting-Agendas NOTE: Special and Closed Sessions are not recorded and not available on Channel 10 or live feed on the city website.
REGULAR MATTERS - COUNCIL CHAMBERS
City of Santa Paula - City Council - City Council Regular Meeting 3
7.C NATIONAL HISPANIC HERITAGE MONTH PROCLAMATION
7.D CAUSE SANTA PAULA - PRESENTATION
7.E CALIFORNIA DEPARTMENT OF INSURANCE
7.F VENTURA COUNTY FIRE DEPARTMENT REPORT
8. CITY COUNCIL REPORTS
9. CITY MANAGER REPORTS
10. CONSENT CALENDAR
Background information has been provided to the City Council on all matters listed under the Consent Calendar and these items are considered to be routine by the City Council and are normally approved by one motion. If discussion is requested by a Councilmember on any item, or a member of the public wishes to comment on an item, that item may be removed from the Consent Calendar for separate action.
10.A APPROVAL OF MINUTES
City Council Special Meeting June 18, 2025
City Council Regular Meeting June 18, 2025
City Council Special Meeting June 30, 2025
RECOMMENDATION:
Staff recommends Council approve minutes.
10.B JULY 2025 WARRANTS AND CERTIFICATIONS
RECOMMENDATION:
Staff recommends that the City Council:
1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for July 2025, starting check number 341321 and ending check number 341578.
2. Review and accept the "Certification of Salaries" for the pay period ending dates June 27th, 2025, through July 11th, 2025.
10.C AUGUST 2025 WARRANTS AND CERTIFICATIONS
RECOMMENDATION:
Staff recommends that the City Council:
1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for August 2025, starting check number 341579 and ending check number 341871.
2. Review and accept the "Certification of Salaries" for the pay period ending dates July 25th, 2025, through August 22nd, 2025.
10.D REVISED SALARY SCHEDULE RESOLUTION FOR FY 2025-2026 AND FY 2026-2027
RECOMMENDATION:
It is recommended that the City Council:
City of Santa Paula - City Council - City Council Regular Meeting 4 (1) Adopt Resolution No. 7590, approving revisions to the FY 2025-2026 and FY 2026-2027 Salary Schedule.
10.E ANNUAL AUDIT - FY 23/24
RECOMMENDATION:
Staff recommends the City Council receive and place on file the Annual Audited Financial Statements for the Fiscal Year ended June 30, 2024.
Presented by: Christy Ramirez, Finance Director
10.F SCHOOL RESOURCE OFFFICER CONTRACT WITH SANTA PAULA
UNIFIED SCHOOL DISTRICT
Prepared by: Police Chief Don Aguilar
RECOMMENDATION:
Staff recommends that the City Council:
1. Authorize the City Manager to execute the School Resource Officer (SRO) MOU with the Santa Paula Unified School District (SPUSD).
10.G CITY LEASE AGREEMENT WITH THE MENDOCINO RAILWAY FOR USE OF 200 NORTH 10TH STREET (TRAIN DEPOT) FOR OFFICE PURPOSES RECOMMENDATION:
Staff recommends that the City Council:
1. Approve a five-year lease agreement with option to extend an additional five-years between the City and the Mendocino Railway for 1,665 square feet of commercial property at 200 North 10th Street (the Train Depot); and
3. Authorize the City Manager, or designee, to execute the agreement in a form approved by the City Attorney.
11. PUBLIC HEARING
Verification of posting notice by City Clerk
Declaration of conflicts (if any)
Declaration of ex parte contacts (if any)
Open public hearing
Staff presentation
Public comments
Close public hearing
Discussion and action
11.A PROJECT NO. 2025-CDP-01: APPROVAL OF A CONDITIONAL USE PERMIT, DESIGN REVIEW, AND VESTING TENTATIVE TRACT MAP NO. 6114 FOR A CONDOMINIUM PROJECT AT 895 FAULKER ROAD
RECOMMENDATION:
Staff recommends the City Council:
1. Call for the staff presentation.
City of Santa Paula - City Council - City Council Regular Meeting 5
2. Ask if applicant wishes to speak.
3. Open the public hearing.
4. Close the public hearing.
5. Adopt City Council Resolution No. 7568 approving Project No. 25-CDP01, a Conditional Use Permit to allow for the development of 213 attached condominiums, Design Review, and Vesting Tentative Tract Map No. 6114 at property located at 895 Faulkner Road, subject to the conditions of approval, and adopting an Addendum to the 2040 General Plan Final EIR.
Presented by: Anna Arroyo, Assistant Planner
11.B
PROJECT NO. 2025-CI-07: AN ORDINANCE AMENDING CHAPTERS
16.52 SWIMMING POOLS, 16.56 AMUSEMENT ARCADES, 16.58
ALCOHOLIC BEVERAGE SALES, 16.60 CHILD DAY CARE FACILITIES,
16.62 ASSEMBLY HALLS, 16.64 COMMUNITY CARE FACILITIES, 16.66 DRIVE-THROUGH FACILITIES, 16.68 NEWRACKS, 16.70 RECYCLING FACILITIES, 16.72 SERVICE STATIONS, 16.74 VENDING MACHINES,
16.75 PROHIBITION ON INDUSTRIAL HEMP CULTIVATION, 16.76 YARD AND GARAGE SALES, 16.77 ELECTRIC VEHICLE CHARGING SYSTEMS; STREAMLINED PERMITTING, 16.78 EMERGENCY SHELTERS, 16.79 REGULATION OF CANNABIS ACTIVITIES, 16.80 SUBDIVISION
REGULATIONS, 16.85 CONDOMINIUMS AND CONVERSIONS, 16.96
GRADING PERMITS, 16.97 GRADING REGULATION, 16.98 HILLSIDE GRADING PRACTICES, 16.99 DRAINAGE, EROSION, AND DUST
CONTROL, 16.100 GENERAL PROVISIONS, 16.102 PERMIT AND
RECLAMATION PLAN, 16.104 REGULATIONS FOR OPERATION OF
SURFACE MINE, 16.106 GROWTH MANAGEMENT, 16.108
TRANSPORTATION DEMAND MANAGEMENT, AND 16.110
NONCONFORMITIES OF THE SANTA PAULA MUNICIPAL CODE IN
ORDER TO CORRECT INCONSISTENCIES, OUTDATED LANGUAGE AND
FORMATTING AND FINDING THE ACTION TO BE STATUTORILY
EXEMPT FROM CEQA UNDER SECTION 15061(B)(3) OF THE PUBLIC
RESOURCES CODE
RECOMMENDATION:
Staff recommends that the City Council:
1. Open the public hearing, receive public testimony, close the public hearing; and
2. Waive the first reading by title only, and introduce Ordinance No. 1348, entitled “An Ordinance Amending Chapters 16.52 Swimming Pools,
16.56 Amusement Arcades, 16.58 Alcoholic Beverage Sales, 16.60 Child Day Care Facilities, 16.62 Assembly Halls, 16.64 Community Care Facilities, 16.66 Drive-Through Facilities, 16.68 Newsracks, 16.70 Recycling Facilities, 16.72 Service Stations, 16.74 Vending Machines,
16.75 Prohibition On Industrial Hemp Cultivation, 16.76 Yard And Garage Sales, 16.77 Electric Vehicle Charging Systems; Streamlined City of Santa Paula - City Council - City Council Regular Meeting 6 Permitting, 16.78 Emergency Shelters, 16.79 Regulation Of Cannabis Activities, 16.80 Subdivision Regulations, 16.85 Condominiums And Conversions, 16.96 Grading Permits, 16.97 Grading Regulation, 16.98 Hillside Grading Practices, 16.99 Drainage, Erosion, And Dust Control,
16.100 General Provisions, 16.102 Permit And Reclamation Plan,
16.104 Regulations For Operation Of Surface Mine, 16.106 Growth Management, 16.108 Transportation Demand Management, And 16.110 Nonconformities Of The Santa Paula Municipal Code In Order To Correct Inconsistencies, Outdated Language And Formatting And Finding The Action To Be Statutorily Exempt From CEQA Under Section 15061(B)(3) Of The Public Resources Code
Presented by: Monica Castillo, City Attorney
12. ACTION ITEMS
12.A TELEGRAPH ROAD WIDENING AND ROUNDABOUT UPDATE
RECOMMENDATION:
Receive this update presentation for informational purposes.
Presented by: Bob Woodward, City Engineer
12.B MOBILE HOME RENT REVIEW COMMISSION COMPENSATION
RECOMMENDATION:
It is recommended that the City Council:
1. Discuss and provide direction to staff regarding the amount and structure of compensation for the Mobile Home Rent Review Commission.
Presented by: James Mason, Community & Economic Development Director
13. ITEMS FOR FUTURE AGENDAS
13.A FUTURE AGENDA ITEMS
RECOMMENDATION:
Staff recommends City Council review future agenda items.
14. ADJOURNMENT
State of California )-
County of Ventura )- ss
City of Santa Paula )-
I declare under penalty of perjury that I posted this City Council Agenda on the bulletin board near the front door of City Hall, 970 Ventura Street, Santa Paula, California.
City of Santa Paula - City Council - City Council Regular Meeting 7 On_________________ at______________Signed:_________________________ Julie Latshaw
City Clerk
City of Santa Paula - City Council - City Council Regular Meeting 8 To: Honorable Mayor and Members of the City Council
From: Julie Latshaw, City Clerk
Subject: APPROVAL OF MINUTES
City Council Special Meeting June 18, 2025
City Council Regular Meeting June 18, 2025
City Council Special Meeting June 30, 2025
Date: September 17, 2025
Agenda Item: 10.A
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends Council approve minutes.
BACKGROUND:
An account of all proceedings of the Legislative Body in open meetings shall be kept by the Clerk/Secretary. The Clerk/Secretary shall prepare an abbreviated record of the meeting proceedings for approval by the Legislative Body which when adopted by the Legislative Body shall be the official Minutes of the meeting. Amendment of the minutes may be made only as to factual accuracy and not as to a change of intent. The Minutes of the meeting need not be verbatim. Only the best and most complete available recording of the meeting shall constitute the official record of the Legislative Body, but the Minutes shall constitute the official record of the Legislative Body meeting where a verbatim record of the meeting is not available. Unless requested by a majority of the quorum, the minutes may be approved without reading.
ANALYSIS:
None.
STRATEGIC PLAN:
This item is not a goal or objective in the City Council's two-year Strategic Plan, however, the Minutes shall constitute the official record of the Legislative Body.
FISCAL IMPACTS:
There are no fiscal impacts for this item.
OPTIONS:
None.
9 ATTACHMENTS:
2025.06.18 City Council Special Minutes.pdf
2025.06.18 City Council Regular Minutes.pdf
2025.06.30 City Council Special Minutes.pdf
10
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12 CITY OF SANTA PAULA
City Council Regular Meeting
June 18, 2025, 6:30 PM
MINUTES
1) CALL TO ORDER
Mayor Chavez called the meeting to order at 6:41pm.
2) INVOCATION
Deacon Al Guilin provided the Invocation.
3) FLAG SALUTE
Councilmember Ornelas led the flag salute.
4) ROLL CALL
Members Present: Pedro A Chavez, Carlos Juarez, Jenny Crosswhite, Leslie Cornejo, and Gabriela Ornelas
5) CLOSED SESSION REPORT
City Attorney Monica Castillo announced Council met in closed session on the following, reporting there was no reportable action was taken.
CONFERENCE WITH LABOR NEGOTIATORS PURSUANT
TO GOVERNMENT CODE §54957.6 - City Representatives: Chief Labor Negotiator Irma Rodriguez Moisa, City Manager Dan Singer, Finance Director Christy Ramirez, and Human Resources Administrator Lorena Alvarez; Employee Organizations: Community Services Officer Association; MidManagement Association; Professional & Supervisory Association; Service Employee International Union, Local 721 (SEIU); Santa Paula Police Officers Association (SPPOA); and Unrepresented Employees: Executive Management; Confidential employees; Part-time employees.
6) PUBLIC COMMENT
None.
7) PRESENTATIONS
7.A) MENTAL HEALTH AWARENESS PRESENTATION
13 Dr. Loretta Denering, Director of Ventura County and Assistant Director Connie Moreno-Peraza provided a presentation on Mental Health Awareness.
7.B) DISPATCHER OF THE YEAR
On behalf of the Santa Paula Police Department, Commander Starna announced Carlos Alarcon as Dispatcher of the Year.
7.C) PROJECT ESPERANZA RECOGNITION
Mayor Chavez presented Project Esperanza Recognition to Lizbeth Magana, Alison Medina, Victoria Carrillo, and Master Carlos Urrutia.
7.D) COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
REPORT
Community and Economic Development Director James Mason provided the Community and Economic Development Department Activity Report.
8) CITY COUNCIL REPORTS
Councilmember Crosswhite:
Attended the Ventura County Transportation Commission meeting.
Councilmember Cornejo:
Announced that the State of the City Event was a success. Announced the Rose Garden dedication to Gary and Nancy Nasalroad was beautiful and appreciated by the family.
Vice Mayor Juarez:
Announced that he was thankful to everyone who was involved in the opening of the Time Capsule on June 16 and mentioned that the artifacts are now displayed in the hallway of City Hall for the public to see. 9) CITY MANAGER REPORTS
10) CONSENT CALENDAR
10.A) MAY 2025 WARRANTS AND CERTIFICATIONS
10.B) THREE-YEAR PROFESSIONAL SERVICES AGREEMENT WITH MKN & ASSOCIATES
10.C) AMENDMENT TO THREE-YEAR PROFESSIONAL SERVICES
AGREEMENT WITH GSI WATER SOLUTIONS, INC.
10.D) AMENDMENT TO THREE-YEAR PROFESSIONAL SERVICES
AGREEMENT WITH LARRY WALKER ASSOCIATES
10.E) 2025 LABOR DAY PARADE REQUEST FOR FEE WAIVER
14 City Attorney Monica Castillo announced redline on item 10.B with MKN and associates. The correction is to add language to limit rates to a budget amount that is contingent upon the city's approved fiscal year each year.
Motion: Approve consent calendar items 10.A, 10.C, 10.D, and 10.E, and approve as amended item 10.B.
Moved by Carlos Juarez, seconded by Jenny Crosswhite
Vote: Motion carried 5-0
Yes: Pedro A Chavez, Carlos Juarez, Jenny Crosswhite, Leslie Cornejo, Gabriela Ornelas
11) PUBLIC HEARING
11.A) INTRODUCTION OF ORDINANCE NO. 1346 AMENDING CHAPTERS
16.13, 16.15, 16.23, 16.25, 16.29, 16.31, 16.33, 16.34, 16.35 AND
16.40 OF THE SANTA PAULA MUNICIPAL CODE IN ORDER TO
CORRECT INCONSISTENCIES, OUTDATED LANGUAGE AND
FORMATTING AND FINDING THE ACTION TO BE STATUTORILY
EXEMPT FROM CEQA UNDER SECTION 15061(b)(3) AND 15168(c) (2) OF THE PUBLIC RESOURCES CODE.
City Attorney Monica Castillo presented this item.
Mayor Chavez opened the public hearing. With no public comments, the public hearing was closed.
Motion: Approve Waiving the first reading by title only, and introduce Ordinance No. 1346, entitled “An Ordinance amending Chapters 16.13,
16.15, 16.23, 16.25, 16.29, 16.31, 16.33, 16.34, 16.35, and 16.40 of the Santa Paula Municipal Code in order to correct inconsistencies, outdated language and formatting and finding the action to be statutorily exempt from CEQA under Section 15061(b)(3) and 15168(c)(2) of the Public Resources Code”.
Moved by Carlos Juarez, seconded by Gabriela Ornelas
Vote: Motion carried 5-0
Yes: Pedro A Chavez, Carlos Juarez, Jenny Crosswhite, Leslie Cornejo, Gabriela Ornelas
12) ACTION ITEMS
12.A) PUBLIC SAFETY USE OF UNMANNED AERIAL SYSTEMS (UAS)
DRAFT POLICY APPROVAL
Police Chief Aguilar presented a presentation on Public Safety Use of Unmanned Aerial Systems (UAS).
Motion: Approve as amended Public Safety Use of Unmanned Aerial Systems (USAS) draft policy, with the addition of language naming SMS/Text message in the sentence about "unless for official business of any type shall not be posted to or distributed"
Moved by Jenny Crosswhite, seconded by Gabriela Ornelas 15 Vote: Motion carried 5-0
Yes: Pedro A Chavez, Carlos Juarez, Jenny Crosswhite, Leslie Cornejo, Gabriela Ornelas
12.B) DISCUSSION ON POTENTIAL PUBLIC SAFETY COMMITTEE
OPTIONS
Police Chief Aguilar provided information on potential public safety committee.
Council provided feedback for Police Chief Aguilar to develop a Police Chief Advisory Committee without it being appointed by Council and bring back guidelines for Council to review.
Council was in consensus.
12.C) CONSIDERATION OF A TENDER OFFER OF LIMCO STOCK
City Manager Dan Singer presented this item.
Council provided staff with feedback to research and bring back on a future agenda.
13) ITEMS FOR FUTURE AGENDAS
13.A) FUTURE AGENDA ITEMS
14) BUDGET WORKSHOP (Continued from 6/18/2025 Special Meeting) Council continued the Budget Workshop from earlier at 4:30 pm Special meeting, providing staff with changes.
15) ADJOURNMENT
Mayor Chavez adjourned the meeting in memory of Ray Luna and Bob Russell at 10:00 pm. Council recessed back to closed session, adjourning closed session at 11:06 pm.
Julie Latshaw, City Clerk
ATTEST:
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19 To: Honorable Mayor and Members of the City Council
From: Beatriz Jimenez, Assistant Finance Director
Subject: JULY 2025 WARRANTS AND CERTIFICATIONS
Date: September 17, 2025
Agenda Item: 10.B
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends that the City Council:
1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for July 2025, starting check number 341321 and ending check number 341578.
2. Review and accept the "Certification of Salaries" for the pay period ending dates June 27th, 2025, through July 11th, 2025.
BACKGROUND:
This staff report certifies the separation of duties between the Preparer (Accounting and Payroll Specialist) and the Reviewer (Finance Director and Assistant Finance Director).
Presented in the attached documents:
a) CERTIFICATION OF ACCOUNTS PAYABLE CHECKS by check number range and dates.
It also discloses any voided checks.
b) EXPENSE REPORTS showing the amount and funds accounts payable came from.
The "Check Report" depicts the following columns:
c) AP-ACCOUNTS PAYABLE for the vendors (non-City staff) by the vendor number, vendor name, payment date, payment amount and check number (entitled 'number'). d) PY-PAYROLL for benefit payments, insurance, retirement, etc. Benefits payable on behalf of City staff.
e) Bank Code Summary by payment type.
f) Fund Summary by fund the accounts payables utilized. 20 CERTIFICATION OF SALARIES
This is the certification (separation of duties between "preparer" and the "reviewer") of salaries and benefits (payroll checks) by fund. It lists salary (payroll) issued checks by beginning and ending check number, payroll ending dates June 27th, 2025, through July 11th, 2025.
ANALYSIS:
See the attachment to this staff report for expense breakdown by respective fund.
STRATEGIC PLAN:
None.
FISCAL IMPACTS:
None.
OPTIONS:
As an alternative to staff's recommendation, the City Council may:
1. Decline to receive and file July 2025 Certifications of Accounts Payable Checks and Certifications of Salaries.
ATTACHMENTS:
July 2025 Payroll and AP Certifications.pdf
21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
To: Honorable Mayor and Members of the City Council
From: Beatriz Jimenez, Assistant Finance Director
Subject: AUGUST 2025 WARRANTS AND CERTIFICATIONS
Date: September 17, 2025
Agenda Item: 10.C
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends that the City Council:
1. Review and accept the "Certification of Accounts Payable" for the accounts payable payment cycles for August 2025, starting check number 341579 and ending check number 341871.
2. Review and accept the "Certification of Salaries" for the pay period ending dates July 25th, 2025, through August 22nd, 2025.
BACKGROUND:
This staff report certifies the separation of duties between the Preparer (Accounting and Payroll Specialist) and the Reviewer (Finance Director and Assistant Finance Director).
Presented in the attached documents:
a) CERTIFICATION OF ACCOUNTS PAYABLE CHECKS by check number range and dates.
It also discloses any voided checks.
b) EXPENSE REPORTS showing the amount and funds accounts payable came from.
The "Check Report" depicts the following columns:
c) AP-ACCOUNTS PAYABLE for the vendors (non-City staff) by the vendor number, vendor name, payment date, payment amount and check number (entitled 'number'). d) PY-PAYROLL for benefit payments, insurance, retirement, etc. Benefits payable on behalf of City staff.
e) Bank Code Summary by payment type.
f) Fund Summary by fund the accounts payables utilized. 37 CERTIFICATION OF SALARIES
This is the certification (separation of duties between "preparer" and the "reviewer") of salaries and benefits (payroll checks) by fund. It lists salary (payroll) issued checks by beginning and ending check number, payroll ending dates July 25th, 2025, through August 22nd, 2025.
ANALYSIS:
See the attachment to this staff report for expense breakdown by respective fund.
STRATEGIC PLAN:
None.
FISCAL IMPACTS:
None.
OPTIONS:
As an alternative to staff's recommendation, the City Council may:
1. Decline to receive and file August 2025 Certifications of Accounts Payable Checks and Certifications of Salaries.
ATTACHMENTS:
August 2025 Payroll and AP Certifications.pdf
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
To: Honorable Mayor and Members of the City Council
From: Dan Singer, City Manager
Subject: REVISED SALARY SCHEDULE RESOLUTION FOR FY 2025-2026 AND FY 2026-2027
Date: September 17, 2025
Agenda Item: 10.D
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
It is recommended that the City Council:
(1) Adopt Resolution No. 7590, approving revisions to the FY 2025-2026 and FY 2026-2027 Salary Schedule.
BACKGROUND:
On August 6, 2025, the City Council adopted the FY 2025-26 and FY 2026-27 Salary Schedule. At the same meeting, Council adopted resolutions approving the 2025-2027 Memorandum of Understanding for the Service Employees International Union (SEIU), Local 721, and the employment terms for Unrepresented: Executive Management Employees.
ANALYSIS:
In a recent review of the adopted salary schedule for FY 2025-26 and FY 2026-27, an error was noticed in the approved salary ranges for the Water System Operator IV classification that was different from the recommendations that the City Council endorsed with the employee compensation study that was prepared by HR Dynamics & Performance Management, and the bargaining guidelines that were provided to staff during labor negotiations. Additionally, closer scrutiny of the City's Chief Technology Officer position, as compared with similar positions within the pool, resulted in a modified recommendation raising the position within the City's salary range table. Finally, the establishment of a new position of Senior Administrative Analyst was previously approved by Council, however the new salary range was inadvertently left off of the schedule approved on August 6.
Tonight's action requests that the City Council adopt a new Resolution which includes revisions to the FY 2025-2026 and FY 2026-2027 Salary Schedule, implementing compensation changes made to the salary ranges of the Chief Technology Officer and Water 56 System Operator IV classification, plus the addition of the Senior Administrative Analyst, effective with the first full pay-period in July 2025. The changes to the salary ranges for these classifications include a base wage increase of 13% for the Chief Technology Officer classification and 5% for the Water System Operator IV (WSO IV) classification. The WSO IV classification had been 5% above the WSO III position and now sits at 10% above a WSO III.
STRATEGIC PLAN:
While this request is not called out in the City's Strategic Plan, it does align with the strategic goal of Operational Excellence.
FISCAL IMPACTS:
The fiscal impacts of the salary range for the Sr. Administrative Analyst have already been included in the current adopted budget, as no changes are recommended. However the increases to the Chief Technology Officer and Water Systems Dual Operator IV will incur a cost of approximately $7,255 to the General Fund and $3,778 to the Water Enterprise Funds for all budgeted positions. Staff will return at the Fiscal Review for the First Quarter no later than November with recommendations on how to fund these increases.
OPTIONS:
1. Approve Resolution No. 7590, adopting the FY 2025-2026 and FY 2026-2027 Salary Schedule to include revisions.
2. Provide alternate direction to staff.
ATTACHMENTS:
Resolution_No._7590 - Revising Salary Schedule.docx
Mou Salary Schedules 9.17.25 - Corrected adding Sr. Admn CTO WSO IV new 26.27.pdf Mou Salary Schedules 9.17.25 - Corrected adding Sr. Admn CTO WSO IV new 25.26.pdf 57 RESOLUTION NO. 7590
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA PAULA ADOPTING THE REVISED FY 2025-2026 AND FY 2026-2027 SALARY
SCHEDULE
The City Council for the City of Santa Paula does resolve as follows:
SECTION 1: The City Council finds as follows:
A. On August 6, 2025, the City Council approved the FY 25-26 and FY 26-27 Salary Schedule.
B. In a recent review of the adopted salary schedule for FY 2025-26 and FY 2026-27, an error was noticed in the approved salary ranges for the Water System Operator IV classification that was different from the recommendations the City Council endorsed with the employee compensation study prepared by HR Dynamics & Performance Management, and the bargaining guidelines that were provided to staff during labor negotiations.
C. Additionally, closer scrutiny of the City's Chief Technology Officer position, as compared with similar positions within the pool, resulted in a modified recommendation raising the position within the City's salary range table.
D. The City Council desires to adopt a revised Salary Schedule to reflect the correct salary ranges for the Water System Operator IV classification and to implement the modified recommendation to raise the Chief Technology Officer position within the City's salary range table.
SECTION 2: The City Council adopts the revised FY 25-26 and FY 26-27 Salary Schedule attached hereto as Exhibit A.
SECTION 3: This Resolution will become effective as of the first full pay period after July 1, 2025.
SECTION 4: The City Clerk shall certify to the adoption of this Resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED AND ADOPTED, this 17TH day of September, 2025.
____________________
Pedro Chavez, Mayor
City of Santa Paula
58 ATTEST:
_________________________
Julie Latshaw, City Clerk
Approved as to form:
______________________________
Monica Castillo, City Attorney
Approved as to content:
_______________________________
Daniel Singer, City Manager
59 EXHIBIT A
Revised Salary Schedule
[attached behind]
60 0.025 3% Hourly Hourly Hourly Hourly Hourly Annual Annual Annual Annual Annual Position Hourly-1 Hourly-2 Hourly-3 Hourly-4 Hourly-5 Annual-1 Annual-2 Annual-3 Annual-4 Annual-5 100 CITY MANAGER 236, 113.58 246.40 ‐ ‐ ‐ ‐ 102 HUMAN RESOURCES ADMINISTRATOR 71.29 67.89 74.86 78.61 82.55 141,211.20 148,283.20 155,708.80 163,508.80 171,704.00 103 PARKS & RECREATION DIRECTOR 78.64 74.89 82.58 86.71 91.05 155,771.20 163,571.20 171,766.40 180,356.80 189,384.00 106 COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR 79.95 76.14 83.95 88.15 92.56 158,371.20 166,296.00 174,616.00 183,352.00 192,524.80 107 FINANCE DIRECTOR/CITY TREASURER 79.44 75.65 83.42 87.60 91.98 157,352.00 165,235.20 173,513.60 182,208.00 191,318.40 108 PUB WORKS DIR/CITY ENGINE 83.63 79.64 87.82 92.22 96.84 165,651.20 173,950.40 182,665.60 191,817.60 201,427.20 109 POLICE CHIEF 86.86 82.72 91.21 95.78 100. 172,057.60 57 180,668.80 189,716.80 199,222.40 209,185.60 111 CHIEF TECHNOLOGY OFFICER 77.27 73.59 81.14 85.20 89.46 153,067.20 160,721.60 168,771.20 177,216.00 186,076.80 113 DEPUTY CITY MANAGER 70.04 66.70 73.55 77.23 81.10 138,736.00 145,683.20 152,984.00 160,638.40 168,688.00 202 ASSISTANT FINANCE DIRECTOR 61.82 58.87 64.92 68.17 71.58 122,449.60 128,585.60 135,033.60 141,793.60 148,886.40 205 POLICE COMMANDER 71.74 68.32 75.33 79.10 83.06 142,105.60 149,219.20 156,686.40 164,528.00 172,764.80 207 ASSISTANT PUB WORKS DIRECTOR 72.91 69.43 76.56 80.39 84.41 144,414.40 151,652.80 159,244.80 167,211.20 175,572.80 208 CHIEF BUILDING OFFICIAL 59.96 57.10 62.96 66.11 69.42 118,768.00 124,716.80 130,956.80 137,508.80 144,393.60 209 ASSISTANT POLICE CHIEF 78.68 74.93 82.62 86.76 91.10 155,854.40 163,654.40 171,849.60 180,460.80 189,488.00 213 PLANNING COMMISSIONER ‐ 50.00 ‐ ‐ ‐ 214 PLANNING & ECONOMIC DEVELOPMENT MANAGER 63.32 60.30 66.49 69.82 73.32 125,424.00 131,705.60 138,299.20 145,225.60 152,505.60 215 WATER OPERATIONS SUPERINTENDENT 66.01 62.86 69.32 72.79 76.43 130,748.80 137,300.80 144,185.60 151,403.20 158,974.40 258 PLANNER, ASSISTANT/GIS ANALYST 38.38 36.55 40.30 42.32 44.44 76, 79,830.40 024.00 83,824.00 88,025.60 92,435.20 259 ENGINEERING TECH. SR. 39.65 37.76 41.64 43.73 45.92 78, 82,472.00 540.80 86,611.20 90,958.40 95,513.60 263 PLANNER, ASSOCIATE 44.06 41.96 46.27 48.59 51.02 87, 91,644.80 276.80 96,241.60 101,067.20 106,121.60 265 MANAGEMENT ANALYST 47.25 45.00 49.62 52.11 54.72 93, 98,280.00 600.00 103,209.60 108,388.80 113,817.60 268 ACCOUNTANT 41.70 39.71 43.79 45.98 48.28 82, 86,736.00 596.80 91,083.20 95,638.40 100,422.40 273 PURCHASING AGENT 47.98 45.69 50.38 52.90 55.55 95, 99,798.40 035.20 104,790.40 110,032.00 115,544.00 274 RECORDS SUPERVISOR 41.04 39.08 43.10 45.26 47.53 81, 85,363.20 286.40 89,648.00 94,140.80 98,862.40 275 ADMINISTRATIVE ANALYST I 31.46 29.96 33.04 34.70 36.44 62, 65,436.80 316.80 68,723.20 72,176.00 75,795.20 276 RECREATION SUPERVISOR 41.04 39.08 43.10 45.26 47.53 81, 85,363.20 286.40 89,648.00 94,140.80 98,862.40 277 PARKS & FACILITIES SUPERVISOR 41.04 39.08 43.10 45.26 47.53 81, 85,363.20 286.40 89,648.00 94,140.80 98,862.40 278 FLEET SUPERVISOR 41.04 39.08 43.10 45.26 47.53 81, 85,363.20 286.40 89,648.00 94,140.80 98,862.40 279 STREETS MAINTENANCE SUPERVISOR 41.04 39.08 43.10 45.26 47.53 81, 85,363.20 286.40 89,648.00 94,140.80 98,862.40 280 ADMINISTRATIVE ANALYST II 37.96 36.15 39.86 41.86 43.96 75, 78,956.80 192.00 82,908.80 87,068.80 91,436.80 281 ASSOCIATE ENGINEER 52.37 49.87 54.99 57.74 60.63 103,729.60 108,929.60 114,379.20 120,099.20 126,110.40 282 EMERGENCY SERVICES COORDINATOR 44.52 42.40 46.75 49.09 51.55 88, 92,601.60 192.00 97,240.00 102,107.20 107,224.00 283 CITY CLERK 45.83 43.64 48.13 50.54 53.07 90, 95,326.40 771.20 100,110.40 105,123.20 110,385.60 301 CUSTODIAN 23.71 22.58 24.90 26.15 27.46 46, 49,316.80 966.40 51,792.00 54,392.00 57,116.80 302 CUST SERVICES REP 24.22 23.06 25.44 26.72 28.06 47, 50,377.60 964.80 52,915.20 55,577.60 58,364.80 304 WATER DISTRIBUTION OPERATOR I 28.33 26.98 29.75 31.24 32.81 56, 58,926.40 118.40 61,880.00 64,979.20 68,244.80 309 ADMINISTRATIVE ASSISTANT 25.29 24.08 26.56 27.89 29.29 50, 52,603.20 086.40 55,244.80 58,011.20 60,923.20 311 ANIMAL SERVICES COORDINAT 30.38 28.93 31.90 33.50 35.18 60, 63,190.40 174.40 66,352.00 69,680.00 73,174.40 313 SR. ADMINISTRATIVE ASST. 27.25 25.95 28.62 30.06 31.57 53, 56,680.00 976.00 59,529.60 62,524.80 65,665.60 314 WATER DISTRIBUTION OPERATOR II 29.78 28.36 31.27 32.84 34.49 58, 61,942.40 988.80 65,041.60 68,307.20 71,739.20 315 MECHANIC I 27.54 26.22 28.92 30.37 31.89 54, 57,283.20 537.60 60,153.60 63,169.60 66,331.20 323 BUILDING INSPECTOR I 31.35 29.85 32.92 34.57 36.30 62, 65,208.00 088.00 68,473.60 71,905.60 75,504.00 324 MECHANIC II 34.08 32.45 35.79 37.58 39.46 67, 70,886.40 496.00 74,443.20 78,166.40 82,076.80 326 BUILDING INSPECTOR II 38.21 36.39 40.13 42.14 44.25 75, 79,476.80 691.20 83,470.40 87,651.20 92,040.00 328 ENGINEERING TECH/INSPECTO 31.12 29.63 32.68 34.32 36.04 61, 64,729.60 630.40 67,974.40 71,385.60 74,963.20 329 SENIOR ACCOUNTING TECHNIC 27.58 26.26 28.96 30.41 31.94 54, 57,366.40 620.80 60,236.80 63,252.80 66,435.20 330 EQUIPMENT MAINT LEADWORK 37.20 35.42 39.06 41.02 43.08 73, 77,376.00 673.60 81,244.80 85,321.60 89,606.40 331 FACILITIES MAINT LEADWORK 30.81 29.34 32.36 33.98 35.68 61, 64,084.80 027.20 67,308.80 70,678.40 74,214.40 332 FAC MAINT WRK I 25.59 24.37 26.87 28.22 29.64 50, 53,227.20 689.60 55,889.60 58,697.60 61,651.20 333 FAC MAINT WRK II 28.22 26.87 29.64 31.13 32.69 55, 58,697.60 889.60 61,651.20 64,750.40 67,995.20 334 MAINTENANCE WRK I 24.59 23.41 25.82 27.12 28.48 48, 51,147.20 692.80 53,705.60 56,409.60 59,238.40 335 MAINTANENCE WRK II 27.09 25.80 28.45 29.88 31.38 53, 56,347.20 664.00 59,176.00 62,150.40 65,270.40 339 STREET MAINT LEADWORKER 29.59 28.18 31.07 32.63 34.27 58, 61,547.20 614.40 64,625.60 67,870.40 71,281.60 343 COMMUNITY DEVELOPMENT TECHNICIAN 30.49 29.03 32.02 33.63 35.32 60, 63,419.20 382.40 66,601.60 69,950.40 73,465.60 344 RECREATION PROGRAM COORDINATOR 28.09 26.75 29.50 30.98 32.53 55, 58,427.20 640.00 61,360.00 64,438.40 67,662.40 345 PERMIT TECHNICIAN 33.50 31.90 35.18 36.94 38.79 66, 69,680.00 352.00 73,174.40 76,835.20 80,683.20 346 ENGINEERING TECH I 30.15 28.71 31.66 33.25 34.92 59, 62,712.00 716.80 65,852.80 69,160.00 72,633.60 347 ENGINEERING TECH II 34.97 33.30 36.72 38.56 40.49 69, 72,737.60 264.00 76,377.60 80,204.80 84,219.20 348 LEAD PARK AND ABATEMENT SPECIALIST 25.78 24.55 27.07 28.43 29.86 51, 53,622.40 064.00 56,305.60 59,134.40 62,108.80 349 ACCOUNTING SPECIALIST 30.15 28.71 31.66 33.25 34.92 59, 62,712.00 716.80 65,852.80 69,160.00 72,633.60 350 DUAL OPERATOR I 32.89 31.32 34.54 36.27 38.09 65, 68,411.20 145.60 71,843.20 75,441.60 79,227.20 351 DUAL OPERATOR II 34.56 32.91 36.29 38.11 40.02 68, 71,884.80 452.80 75,483.20 79,268.80 83,241.60 352 DUAL OPERATOR III 38.61 36.77 40.55 42.58 44.71 76, 80,308.80 481.60 84,344.00 88,566.40 92,996.80 353 DUAL OPERATOR IV 41.61 39.62 43.70 45.89 48.19 86,548.80 82,409.60 90,896.00 95,451.20 100,235.20 354 LEAD DUAL OPERATOR 43.73 41.64 45.92 48.22 50.64 86, 90,958.40 611.20 95,513.60 100,297.60 105,331.20 355 SR. ADMINISTRATIVE ANALYST 41.75 39.76 43.84 46.04 48.35 82, 86,840.00 700.80 91,187.20 95,763.20 100,568.00 401 PUBLIC SAFETY DISP CLERK 32.88 31.31 34.53 36.26 38.08 59, 62,171.20 196.80 65,291.20 68,556.80 71,988.80 402 PUB SAFETY DISPATCH SUPER 40.23 38.31 42.25 44.37 46.59 74, 78,187.20 464.00 82,097.60 86,216.00 90,542.40 403 POLICE OFFICER 46.43 44.21 48.76 51.20 53.76 85, 90,230.40 924.80 94,744.00 99,486.40 104,478.40 405 POLICE SENIOR 51.97 49.49 54.57 57.30 60.17 96, 101,025.60 106,080.00 200.00 111,384.00 116,958.40 406 POLICE SERGEANT 60.51 57.62 63.54 66.72 70.06 112,008.00 117,624.00 123,510.40 129,688.00 136,177.60 407 POLICE RECRUIT ‐ 26.42 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 501 COMMUNITY SERVICES OFFICE 22.02 20.97 23.13 24.29 25.51 43, 45,801.60 617.60 48,110.40 50,523.20 53,060.80 502 EVIDENCE & PROPERTY TECHNICIAN 24.40 23.23 25.62 26.91 28.26 48, 50,752.00 318.40 53,289.60 55,972.80 58,780.80 503 RECORDS TECHNICIAN 21.79 20.75 22.88 24.03 25.24 43, 45,323.20 160.00 47,590.40 49,982.40 52,499.20 Proposed 9.17.25 FY 26/27 Salary Schedule
61 0.025 3% Hourly Hourly Hourly Hourly Hourly Annual Annual Annual Annual Annual Position Hourly-1 Hourly-2 Hourly-3 Hourly-4 Hourly-5 Annual-1 Annual-2 Annual-3 Annual-4 Annual-5 Proposed 9.17.25 FY 26/27 Salary Schedule
703 IT SUPPORT ANALYST 45.00 42.85 47.25 49.62 52.11 89, 93,600.00 128.00 98,280.00 103,209.60 108,388.80 704 PAYROLL SPECIALIST 35.45 33.76 37.23 39.10 41.06 70, 73,736.00 220.80 77,438.40 81,328.00 85,404.80 705 EXECUTIVE ASSISTANT 29.80 28.38 31.29 32.86 34.51 59, 61,984.00 030.40 65,083.20 68,348.80 71,780.80 706 HUMAN RESOURCES ANALYST 45.00 42.85 47.25 49.62 52.11 89, 93,600.00 128.00 98,280.00 103,209.60 108,388.80 707 HUMAN RESOURCE TECHNICIAN 29.09 27.70 30.55 32.08 33.69 57, 60,507.20 616.00 63,544.00 66,726.40 70,075.20 801 RECREATION LEADER II 17.33 16.50 18.20 19.11 20.07 802 RECREATION LEADER III 18.20 17.33 19.11 20.07 21.08 803 COMM SERVICE OFFICER 17.33 16.50 18.20 19.11 20.07 804 NUTRITION COORDINATOR 17.33 16.50 18.20 19.11 20.07 806 FACILITY ATTENDANT 19.90 18.95 20.90 21.95 23.05 808 SENIOR COORDINATOR 23.46 22.34 24.64 25.88 27.18 809 SECRETARY II 25.11 23.91 26.37 27.69 29.08 810 POLICE RESERVE 26.70
811 CITY INTERN 17.33 16.50 18.20 19.11 20.07 816 PARK ABATEMENT SPECIALIST 22.11 21.05 23.22 24.39 25.61 818 POLICE CADET 17.33 16.50 18.20 19.11 20.07 819 PW FIELD TECHNICIAN 17.33 16.50 18.20 19.11 20.07 820 CRIMINAL INVESTIGATIVE ANALYST 42.70 40.66 44.84 47.09 49.45 821 MECHANIC HELPER 17.33 16.50 18.20 19.11 20.07 822 RECREATION LEADER I / CITY CORP TRAINEE ‐ 16.50 ‐ ‐ ‐ 823 CODE ENFORCEMENT INSPECTOR 34.89 33.22 36.64 38.48 40.41 69, 72,571.20 097.60 76,211.20 80,038.40 84,052.80 900 COUNCILMEMBER ‐ 600.00 ‐ ‐ ‐ 62 0 3% Hourly Hourly Hourly Hourly Hourly Annual Annual Annual Annual Annual Position Hourly-1 Hourly-2 Hourly-3 Hourly-4 Hourly-5 Annual-1 Annual-2 Annual-3 Annual-4 Annual-5 CITY MANAGER 100 229,361.60 ‐ 110.27 ‐ ‐ ‐ HUMAN RESOURCES ADMINISTRATOR 102 67.38 64.17 70.75 74.29 78.01 133,473.60 140,150.40 147,160.00 154,523.20 162,260.80 PARKS & RECREATION DIRECTOR 103 72.41 68.96 76.04 79.85 83.85 143,436.80 150,612.80 158,163.20 166,088.00 174,408.00 COMMUNITY 106 & ECONOMIC DEVELOPMENT DIRECTOR 74.23 70.69 77.95 81.85 85.95 147,035.20 154,398.40 162,136.00 170,248.00 178,776.00 FINANCE DIRECTOR/CITY TREASURER 107 73.52 70.01 77.20 81.06 85.12 145,620.80 152,921.60 160,576.00 168,604.80 177,049.60 PUB WORKS DIR/CITY ENGINE 108 79.42 75.63 83.40 87.57 91.95 157,310.40 165,193.60 173,472.00 182,145.60 191,256.00 POLICE CHIEF 109 81.99 78.08 86.09 90.40 94.92 162,406.40 170,539.20 179,067.20 188,032.00 197,433.60 CHIEF TECHNOLOGY OFFICER 111 70.54 67.18 74.07 77.78 81.67 139,734.40 146,723.20 154,065.60 161,782.40 169,873.60 DEPUTY CITY MANAGER 113 65.61 62.48 68.90 72.35 75.97 129,958.40 136,468.80 143,312.00 150,488.00 158,017.60 ASSISTANT FINANCE DIRECTOR 202 55.78 53.12 58.57 61.50 64.58 110,489.60 116,022.40 121,825.60 127,920.00 134,326.40 POLICE COMMANDER 205 68.02 64.78 71.43 75.01 78.77 134,742.40 141,481.60 148,574.40 156,020.80 163,841.60 ASSISTANT PUB WORKS DIRECTOR 207 66.94 63.75 70.29 73.81 77.51 132,600.00 139,235.20 146,203.20 153,524.80 161,220.80 CHIEF BUILDING OFFICIAL 208 53.29 50.75 55.96 58.76 61.70 105,560.00 110,843.20 116,396.80 122,220.80 128,336.00 ASSISTANT POLICE CHIEF 209 74.30 70.76 78.02 81.93 86.03 147,180.80 154,544.00 162,281.60 170,414.40 178,942.40 PLANNING COMMISSIONER 213 ‐ 50.00 ‐ ‐ ‐ PLANNING & ECONOMIC DEVELOPMENT MANAGER 214 57.84 55.08 60.74 63.78 66.97 114,566.40 120,307.20 126,339.20 132,662.40 139,297.60 WATER OPERATIONS SUPERINTENDENT 215 61.55 58.61 64.63 67.87 71.27 121,908.80 128,024.00 134,430.40 141,169.60 148,241.60 PLANNER, ASSISTANT/GIS ANALYST 258 36.52 34.78 38.35 40.27 42.29 72,342.40 75,961.60 79,768.00 83,761.60 87,963.20 ENGINEERING TECH. SR. 259 37.58 35.79 39.46 41.44 43.52 74,443.20 78,166.40 82,076.80 86,195.20 90,521.60 PLANNER, ASSOCIATE 263 41.65 39.66 43.74 45.93 48.23 82,492.80 86,632.00 90,979.20 95,534.40 100,318.40 MANAGEMENT ANALYST 265 44.21 42.10 46.43 48.76 51.20 87,568.00 91,956.80 96,574.40 101,420.80 106,496.00 ACCOUNTANT 268 38.94 37.08 40.89 42.94 45.09 77,126.40 80,995.20 85,051.20 89,315.20 93,787.20 PURCHASING AGENT 273 44.55 42.42 46.78 49.12 51.58 88,233.60 92,664.00 97,302.40 102,169.60 107,286.40 RECORDS SUPERVISOR 274 37.44 35.65 39.32 41.29 43.36 74,152.00 77,875.20 81,785.60 85,883.20 90,188.80 ADMINISTRATIVE ANALYST I 275 28.66 27.29 30.10 31.61 33.20 56,763.20 59,612.80 62,608.00 65,748.80 69,056.00 RECREATION SUPERVISOR 276 37.44 35.65 39.32 41.29 43.36 74,152.00 77,875.20 81,785.60 85,883.20 90,188.80 PARKS & FACILITIES SUPERVISOR 277 37.44 35.65 39.32 41.29 43.36 74,152.00 77,875.20 81,785.60 85,883.20 90,188.80 FLEET SUPERVISOR 278 37.44 35.65 39.32 41.29 43.36 74,152.00 77,875.20 81,785.60 85,883.20 90,188.80 STREETS MAINTENANCE SUPERVISOR 279 37.44 35.65 39.32 41.29 43.36 74,152.00 77,875.20 81,785.60 85,883.20 90,188.80 ADMINISTRATIVE ANALYST II 280 35.20 33.52 36.96 38.81 40.76 69,721.60 73,216.00 76,876.80 80,724.80 84,780.80 ASSOCIATE ENGINEER 281 49.30 46.95 51.77 54.36 57.08 97,656.00 102,544.00 107,681.60 113,068.80 118,726.40 EMERGENCY SERVICES COORDINATOR 282 40.24 38.32 42.26 44.38 46.60 79,705.60 83,699.20 87,900.80 92,310.40 96,928.00 CITY CLERK 283 39.56 37.67 41.54 43.62 45.81 78,353.60 82,284.80 86,403.20 90,729.60 95,284.80 CUSTODIAN 301 22.74 21.65 23.88 25.08 26.34 45,032.00 47,299.20 49,670.40 52,166.40 54,787.20 CUST SERVICES REP 302 22.97 21.87 24.12 25.33 26.60 45,489.60 47,777.60 50,169.60 52,686.40 55,328.00 WATER DISTRIBUTION OPERATOR I 304 27.24 25.94 28.61 30.05 31.56 53,955.20 56,659.20 59,508.80 62,504.00 65,644.80 ADMINISTRATIVE ASSISTANT 309 23.54 22.41 24.72 25.96 27.26 46,612.80 48,963.20 51,417.60 53,996.80 56,700.80 ANIMAL SERVICES COORDINAT 311 26.37 25.11 27.69 29.08 30.54 52,228.80 54,849.60 57,595.20 60,486.40 63,523.20 SR. ADMINISTRATIVE ASST. 313 25.04 23.84 26.30 27.62 29.01 49,587.20 52,083.20 54,704.00 57,449.60 60,340.80 WATER DISTRIBUTION OPERATOR II 314 28.62 27.25 30.06 31.57 33.15 56,680.00 59,529.60 62,524.80 65,665.60 68,952.00 MECHANIC I 315 25.30 24.09 26.57 27.90 29.30 50,107.20 52,624.00 55,265.60 58,032.00 60,944.00 BUILDING INSPECTOR I 323 29.23 27.83 30.70 32.24 33.86 57,886.40 60,798.40 63,856.00 67,059.20 70,428.80 MECHANIC II 324 31.48 29.98 33.06 34.72 36.46 62,358.40 65,478.40 68,764.80 72,217.60 75,836.80 BUILDING INSPECTOR II 326 35.57 33.87 37.35 39.22 41.19 70,449.60 73,985.60 77,688.00 81,577.60 85,675.20 ENGINEERING TECH/INSPECTO 328 28.90 27.52 30.35 31.87 33.47 57,241.60 60,112.00 63,128.00 66,289.60 69,617.60 SENIOR ACCOUNTING TECHNIC 329 25.89 24.65 27.19 28.55 29.98 51,272.00 53,851.20 56,555.20 59,384.00 62,358.40 EQUIPMENT MAINT LEADWORK 330 34.15 32.52 35.86 37.66 39.55 67,641.60 71,032.00 74,588.80 78,332.80 82,264.00 FACILITIES MAINT LEADWORK 331 28.20 26.85 29.61 31.10 32.66 55,848.00 58,656.00 61,588.80 64,688.00 67,932.80 FAC MAINT WRK I 332 23.62 22.49 24.81 26.06 27.37 46,779.20 49,129.60 51,604.80 54,204.80 56,929.60 FAC MAINT WRK II 333 25.98 24.74 27.28 28.65 30.09 51,459.20 54,038.40 56,742.40 59,592.00 62,587.20 MAINTENANCE WRK I 334 23.15 22.04 24.31 25.53 26.81 45,843.20 48,152.00 50,564.80 53,102.40 55,764.80 MAINTANENCE WRK II 335 25.46 24.24 26.74 28.08 29.49 50,419.20 52,956.80 55,619.20 58,406.40 61,339.20 STREET MAINT LEADWORKER 339 27.63 26.31 29.02 30.48 32.01 54,724.80 57,470.40 60,361.60 63,398.40 66,580.80 COMMUNITY DEVELOPMENT TECHNICIAN 343 28.61 27.24 30.05 31.56 33.14 56,659.20 59,508.80 62,504.00 65,644.80 68,931.20 RECREATION PROGRAM COORDINATOR 344 24.92 23.73 26.17 27.48 28.86 49,358.40 51,833.60 54,433.60 57,158.40 60,028.80 PERMIT TECHNICIAN 345 31.98 30.45 33.58 35.26 37.03 63,336.00 66,518.40 69,846.40 73,340.80 77,022.40 ENGINEERING TECH I 346 28.27 26.92 29.69 31.18 32.74 55,993.60 58,801.60 61,755.20 64,854.40 68,099.20 ENGINEERING TECH II 347 32.75 31.19 34.39 36.11 37.92 64,875.20 68,120.00 71,531.20 75,108.80 78,873.60 LEAD PARK AND ABATEMENT SPECIALIST 348 23.87 22.73 25.07 26.33 27.65 47,278.40 49,649.60 52,145.60 54,766.40 57,512.00 ACCOUNTING SPECIALIST 349 28.14 26.80 29.55 31.03 32.59 55,744.00 58,531.20 61,464.00 64,542.40 67,787.20 DUAL OPERATOR I 350 31.57 30.06 33.15 34.81 36.56 62,524.80 65,665.60 68,952.00 72,404.80 76,044.80 DUAL OPERATOR II 351 33.16 31.58 34.82 36.57 38.40 65,686.40 68,972.80 72,425.60 76,065.60 79,872.00 DUAL OPERATOR III 352 35.93 34.21 37.73 39.62 41.61 71,156.80 74,734.40 78,478.40 82,409.60 86,548.80 DUAL OPERATOR IV 353 38.21 36.39 40.13 42.14 44.25 75,691.20 79,476.80 83,470.40 87,651.20 92,040.00 LEAD DUAL OPERATOR 354 40.16 38.24 42.17 44.28 46.50 79,539.20 83,532.80 87,713.60 92,102.40 96,720.00 SR. ADMINISTRATIVE ANALYST 355 38.73 36.88 40.67 42.71 44.85 76,710.40 80,558.40 84,593.60 88,836.80 93,288.00 PUBLIC SAFETY DISP CLERK 401 29.89 28.46 31.39 32.96 34.61 59,196.80 62,171.20 65,291.20 68,556.80 71,988.80 PUB SAFETY DISPATCH SUPER 402 37.59 35.80 39.47 41.45 43.53 74,464.00 78,187.20 82,097.60 86,216.00 90,542.40 POLICE OFFICER 403 43.38 41.31 45.55 47.83 50.23 85,924.80 90,230.40 94,744.00 99,486.40 104,478.40 POLICE SENIOR 405 48.57 46.25 51.00 53.55 56.23 96,200.00 101,025.60 106,080.00 111,384.00 116,958.40 POLICE SERGEANT 406 56.55 53.85 59.38 62.35 65.47 112,008.00 117,624.00 123,510.40 129,688.00 136,177.60 POLICE RECRUIT 407 ‐ 26.42 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ COMMUNITY SERVICES OFFICE 501 22.02 20.97 23.13 24.29 25.51 43,617.60 45,801.60 48,110.40 50,523.20 53,060.80 EVIDENCE & PROPERTY TECHNICIAN 502 24.40 23.23 25.62 26.91 28.26 48,318.40 50,752.00 53,289.60 55,972.80 58,780.80 RECORDS TECHNICIAN 503 21.79 20.75 22.88 24.03 25.24 43,160.00 45,323.20 47,590.40 49,982.40 52,499.20 Proposed 9.17.25 FY 25/26 Salary Schedule; Effective first full pay period in July 2025 63 0 3% Hourly Hourly Hourly Hourly Hourly Annual Annual Annual Annual Annual Position Hourly-1 Hourly-2 Hourly-3 Hourly-4 Hourly-5 Annual-1 Annual-2 Annual-3 Annual-4 Annual-5 Proposed 9.17.25 FY 25/26 Salary Schedule; Effective first full pay period in July 2025 IT SUPPORT ANALYST 703 41.09 39.13 43.15 45.31 47.58 81,390.40 85,467.20 89,752.00 94,244.80 98,966.40 PAYROLL SPECIALIST 704 30.52 29.06 32.05 33.66 35.35 60,444.80 63,481.60 66,664.00 70,012.80 73,528.00 EXECUTIVE ASSISTANT 705 27.23 25.93 28.60 30.03 31.54 53,934.40 56,638.40 59,488.00 62,462.40 65,603.20 HUMAN RESOURCES ANALYST 706 41.09 39.13 43.15 45.31 47.58 81,390.40 85,467.20 89,752.00 94,244.80 98,966.40 HUMAN RESOURCE TECHNICIAN 707 27.64 26.32 29.03 30.49 32.02 54,745.60 57,491.20 60,382.40 63,419.20 66,601.60 RECREATION LEADER II 801 17.33 16.50 18.20 19.11 20.07 RECREATION LEADER III 802 18.20 17.33 19.11 20.07 21.08 COMM SERVICE OFFICER 803 17.33 16.50 18.20 19.11 20.07 NUTRITION COORDINATOR 804 17.33 16.50 18.20 19.11 20.07 FACILITY ATTENDANT 806 19.31 18.39 20.28 21.30 22.37 SENIOR COORDINATOR 808 22.77 21.68 23.91 25.11 26.37 SECRETARY II 809 24.38 23.21 25.60 26.88 28.23 POLICE RESERVE 810 26.70
CITY INTERN 811 17.33 16.50 18.20 19.11 20.07 PARK ABATEMENT SPECIALIST 816 21.46 20.43 22.54 23.67 24.86 POLICE CADET 818 17.33 16.50 18.20 19.11 20.07 PW FIELD TECHNICIAN 819 17.33 16.50 18.20 19.11 20.07 CRIMINAL INVESTIGATIVE ANALYST 820 41.45 39.47 43.53 45.71 48.00 MECHANIC HELPER 821 17.33 16.50 18.20 19.11 20.07 RECREATION LEADER I / CITY CORP TRAINEE 822 ‐ 16.50 ‐ ‐ ‐ CODE ENFORCEMENT INSPECTOR 823 32.64 31.08 34.28 36.00 37.80 64,646.40 67,891.20 71,302.40 74,880.00 78,624.00 COUNCILMEMBER 900 ‐ 600.00 ‐ ‐ ‐ 64 To: Honorable Mayor and Members of the City Council
From: Christy Ramirez, Finance Director
Subject: ANNUAL AUDIT - FY 23/24
Date: September 17, 2025
Agenda Item: 10.E
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends the City Council receive and place on file the Annual Audited Financial Statements for the Fiscal Year ended June 30, 2024.
Presented by: Christy Ramirez, Finance Director
BACKGROUND:
The City engaged Rogers, Anderson, Mallody, and Scott (RAMS) to perform an annual financial audit of the City and the eligible federal grant programs for the period ended June 30, 2024. On September 3, 2025, the audit firm will issue the final report of the City’s financial records. At the front of these reports is an Independent Auditors’ Report that shares with the reader their opinion that “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Santa Paula as of June 30, 2024….” This means that the City has properly accounted for City finances without any major misstatements.
ANALYSIS:
For the purposes of this audit, the General Fund is made up of 8 funds (General, General Reserve, General Fund FEMA Program, General Fund-Measure T, General Recreation, Refuse Reserve, Equipment Maintenance, and Miscellaneous Deposits). Of the $12,574,608 General Funds balance $5,586,290 is nonspendable, restricted or assigned. The remaining amount of $6,988,318 unassigned includes the General Fund Operating Reserves (General Reserve and General Reserve - Measure T) totaling $3,800,135, which have been set aside to be held “in the event of an emergency, disaster, or other extraordinary circumstance.” as well as $1,835,919 in other subfunds such as Cable Television, Miscellaneous Deposits, etc. Not reflected is the $500,000 interfund loan intended from Measure T to the Parks DIF Fund or the $487,470 reserve loan for the Sinkhole repairs that will be partially reimbursed in FY 24/25.
The final draft audit has been included as an attachment to this report, with a final version to be presented at the Council meeting.
STRATEGIC PLAN:
65 FISCAL IMPACTS:
None.
OPTIONS:
The Council may decide to defer the matter back to staff with further direction.
ATTACHMENTS:
Final Draft FS 9.11.25.pdf
66 City of Santa Paula,
California
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
DRAFT
Subject To Change
67 City of Santa Paula
Annual Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS
Page
Independent Auditor’s Report .............................................................................................. 1 Management’s Discussion and Analysis ............................................................................. 4 Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ........................................................................................... 13 Statement of Activities ................................................................................................. 14 Fund Financial Statements:
Balance Sheet - Governmental Funds ........................................................................ 15 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................................... 16 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ............................................................................................. 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................. 19 Statement of Net Position - Proprietary Funds ............................................................ 20 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds .................................................................................................. 21 Statement of Cash Flows - Proprietary Funds ............................................................ 22 Statement of Fiduciary Net Position ............................................................................ 23 Statement of Changes in Fiduciary Net Position ......................................................... 24 Notes to Financial Statements .......................................................................................... 25 Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund .............................................................................................................. 65 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios .................... 66 Schedule of the City’s Proportionate Share of the Net Pension Liability ........................... 67 Schedule of Plan Contributions ......................................................................................... 68 Notes to Required Supplementary Information ................................................................. 69 DRAFT
Subject To Change
68 City of Santa Paula
Annual Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS (Continued)
Page
Supplementary Information
Combining and Individual Fund Statements and Schedules:
Combined Balance Sheet - Nonmajor Governmental Funds ...................................... 72 Combining Balance Sheet - Nonmajor Special Revenue Funds ................................. 73 Combining Balance Sheet - Nonmajor Capital Projects Funds ................................... 76 Combining Balance Sheet - Nonmajor Permanent Funds .......................................... 78 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ............................................................................ 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds ........................................................................ 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project Funds ........................................................................... 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Permanent Fund ................................................................................... 85 DRAFT
Subject To Change
69 -1-
Independent Auditor’s Report
The Honorable City Council
City of Santa Paula, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Santa Paula (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 accompanying 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 Government Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2024, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. Our opinions are not modified with respect to this matter.
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70 -2-
Responsibilities of Management for the Financial Statements The City’s 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.
Auditor’s 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 auditor’s 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 Governmental 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 Governmental 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.
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Subject To Change
71 -3-
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and budgetary comparison other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements 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 accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 11, 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino, California
September 11, 2025
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Subject To Change
72 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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As management of the City of Santa Paula (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2023-24 by $118,504,660 (net position).
The City’s total net position increased by $14,672,867 from the 2022-23 fiscal year mainly attributable to regular current operating activities along with a decrease in construction in progress related expenses.
As of the close of fiscal year 2023-24, the City’s governmental activities reported combined ending net position of $47,030,758 an increase of $3,902,166 from the ending balance of 2023, which was $43,128,592. The net position of $232,422 is expendable funds and $889,643 is nonexpendable funds (endowments/trusts), $20,040,084 restricted net position (grant funds and bond proceeds), and $(10,896,939) negative is (unrestricted net position) available for spending with some government discretion. At the end of fiscal year 2023-24, unrestricted fund balance (the total of the committed and unassigned components of fund balance) for the General Fund is $12,574,608 or 70.22% of total General Fund expenditures. This is an increase of $64,239 from fiscal year 2022-23 largely due to reclassifications of committed funds.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
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73 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets, economic development, and culture and recreation.
The business-type activities of the City include Water and Sewer enterprises.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Financing Authority for which the City of Santa Paula is financially accountable. Financial information for these component units is included in the financial information presented for the primary government itself. The Water and Sewer enterprises, function for all practical purposes as departments of the City, and therefore have been included as an integral part of the primary government. Also, as of February 1, 2012 the Santa Paula Redevelopment Agency became the Designated Local Authority for the former Santa Paula Redevelopment Agency, a Successor Agency Private purpose trust fund with the City reporting as fiduciary funds.
The government-wide financial statements can be found on pages 13-14 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmental-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
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74 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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The City maintains twenty-three individual active governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in the fund balances for the General Fund (which is made up of nine separate internal funds). Data from the twenty active governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund, and the major special revenue funds. Budgetary comparison statements have been provided for the General Fund and the major special revenue funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 15-19 of this report.
Proprietary funds. The City maintains three different types of proprietary funds: Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Water and Sewer operations. These funds are reported separately as Proprietary Funds.
The basic proprietary fund financial statements can be found on pages 20-22 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The City maintains two different types of fiduciary funds. The Custodial Funds account for funds held in trust for specific purposes and the Private Purpose Trust Fund accounts for the Successor agency for the Santa Paula Redevelopment agency.
The basic Fiduciary fund financial statements can be found on pages 23-24 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 25-64 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s General Fund, and Major Special Revenue Funds’ Actual to Budget comparisons. Required supplementary information can be found on pages 65-69 of this report.
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75 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on pensions.
Combining and individual fund statements and schedules can be found on pages 72-85 of this report.
Government-wide Financial Analysis
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, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $118,504,660, at the close of fiscal year 2023-24.
June 30, 2024 June 30, 2023
Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total Assets
Current and other assets $ 38,903,080 $ 41,301,872 $ 80,204,952 $ 38,042,538 $ 41,029,357 $ 79,071,895 Capital assets (net of depreciating) 36,765,548 139,832,723 176,598,271 35,716,802 132,672,822 168,389,624 Total Assets 75,668,628 181,134,595 256,803,223 73,759,340 173,702,179 247,461,519 Deferred Outflows of Resources
Deferred charges on refundings - 10,160,668 10,160,668 - 10,484,945 10,484,945 Pension related 10,776,623 1,483,677 12,260,300 11,140,089 1,447,004 12,587,093 OPEB related 324,932 103,174 428,106 415,678 124,866 540,544 Total Deferred Outflows of Resources 11,101,555 11,747,519 22,849,074 11,555,767 12,056,815 23,612,582 Liabilities
Long-term liabilities outstanding 32,573,032 116,150,279 148,723,311 31,332,825 119,149,922 150,482,747 Other liabilities 3,462,688 4,327,659 7,790,347 5,776,326 4,763,221 10,539,547 Total Liabilities 36,035,720 120,477,938 156,513,658 37,109,151 123,913,143 161,022,294 Deferred Inflows of Resources
Pension related 1,834,290 336,691 2,170,981 2,971,654 510,115 3,481,769 OPEB related 1,869,415 593,583 2,462,998 2,105,710 632,535 2,738,245 Total Deferred Inflows of Resources 3,703,705 930,274 4,633,979 5,077,364 1,142,650 6,220,014 Net investment in capital assets 36,765,548 41,724,034 78,489,582 35,716,802 31,323,330 67,040,132 Restricted 21,162,149 3,384,692 24,546,841 19,924,875 3,225,290 23,150,165 Unrestricted (10,896,939) 26,365,176 15,468,237 (12,513,085) 26,154,581 13,641,496 Total Net Position $ 47,030,758 $ 71,473,902 $ 43,128,592 118,504,660 $ $ 60,703,201 $ 103,831,793 Government-Wide Financial Statements
Table 1: Summary of Net Position
A large portion (almost all) of the City’s net position includes $78,489,582 (66.23%) as its net investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (20.71%) represents resources that are subject to external restrictions on how they may be used.
At the end of the current fiscal year, the City is able to report a positive balance in net position for Investments in Capital Assets and restricted purposes. Separately, the City’s governmental unrestricted net position shows a negative balance of $(10,896,939), which is an increase in net position of $1,616,146 from the previous year.
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76 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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The business-type activities unrestricted net position show a positive balance of $26,365,176 a increase of $210,595 over the fiscal year 2023-24’s balance of $26,154,581. These unrestricted funds can only be used for Water and Sewer activities. The Water fund has $3,284,692 restricted under Cash with Fiscal Agent while the Sewer Fund has $100,000 for rate stabilization. These funds are related to the Bond Issues.
As of June 30, 2024 As of June 30, 2023
Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total Revenues
Charges for services $ 1,993,174 $ 27,174,347 $ 29,167,521 $ 2,016,967 $ 25,424,733 $ 27,441,700 Operating grants 6,180,653 - 6,180,653 7,633,164 - 7,633,164 Capital grants 1,675,332 - 1,675,332 5,336,436 - 5,336,436 General revenues: -
Property taxes 5,648,445 - 5,648,445 5,078,541 - 5,078,541 Sales taxes 7,850,347 - 7,850,347 8,499,611 - 8,499,611 Other taxes 1,395,750 - 1,395,750 1,299,097 - 1,299,097 Investments 345,638 1,769,451 2,115,089 309,583 662,067 971,650 Other revenues 296,465 109,000 405,465 655,798 210,425 866,223 Total Revenues 25,385,804 29,052,798 54,438,602 30,829,197 26,297,225 57,126,422 Expenses
General government 2,575,275 - 2,575,275 1,389,631 - 1,389,631 Building and safety 711,834 - 711,834 1,029,527 - 1,029,527 Community services 4,018,216 - 4,018,216 992,275 - 992,275 Financial services 712,448 - 712,448 381,609 - 381,609
Fire 12,986 - 12,986 260,072 - 260,072
Planning 1,035,224 - 1,035,224 1,040,387 - 1,040,387
Police 9,328,564 - 9,328,564 7,513,654 - 7,513,654
Public works 3,089,091 - 3,089,091 3,481,127 - 3,481,127 Water 8,694,144 - 8,694,144 - 7,956,508 7,956,508
Sewer 9,587,953 - 9,587,953 - 10,113,529 10,113,529
Total Expenses 21,483,638 18,282,097 39,765,735 16,088,282 18,070,037 34,158,319 Change in Net Position 3,902,166 10,770,701 14,672,867 14,740,915 8,227,188 22,968,103 Beginning Net Position 43,128,592 60,703,201 103,831,793 28,387,677 52,476,013 80,863,690 Ending Net Position 47,030,758 $ 71,473,902 $ 118,504,660 $ 43,128,592 $ 60,703,201 $ 103,831,793 $ Government-Wide Financial Statements
Table 2: Summary of Changes in Net Position
Governmental activities. Governmental activities increased the City’s net position by $3,902,166 for the current year. The increases in net position are explained in further detail on page 14 of the report. Expenses for governmental activities increased from $16,088,282 in 2023 to $21,483,638 in 2024, an increase of $5,395,356. The increase is largely due a decrease in public works related construction in progress related expenditures.
Business-type activities. Business-type activities increased the City’s net position by $10,770,701.
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77 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined total ending fund balances of $35,550,447.
The General Fund is the chief operating fund of the City. At June 30, 2024, the unassigned fund balance for the General Fund was $6,988,318, while total fund balance reached $12,574,608.
As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents
39.1% of the total General Fund expenditures, while total fund balance represents 70.3%of that same amount. The City’s unassigned General Fund balance decreased by $4,249,636 during the current fiscal year due to the reclassification of $5,367,745 to assigned fund balance.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
The net position of the Water and Sewer enterprises at the end of the year amounted to $71,473,902 and an increase of $10,770,701 from the fiscal year ended 2022-23. The net position for the proprietary funds - water increased $6,388,867 and sewer increased $4,381,834. Other factors concerning the finances of these funds are addressed in the discussion of the City’s business-type activities.
Water Sewer Total
Operating revenues $ 13,471,612 $ 13,702,735 $ 27,174,347 Operating expenses 7,601,925 6,747,886 14,349,811
Operating income (loss) 5,869,687 6,954,849 12,824,536
Total Non-Operating Revenues
(Expenses) 249,457 (2,303,292) (2,053,835)
Transfers in 269,723 - 269,723
Transfers out - (269,723) (269,723)
Change in Net Position 6,388,867 4,381,834 10,770,701
Total Net Position, Beginning 32,110,826 28,592,375 60,703,201 Total Net Position, Ending $ 38,499,693 $ 32,974,209 $ 71,473,902 Table 3: Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position As of June 30, 2024
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78 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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General Fund Budgetary Highlights
The actual General Fund revenue ended at ($1,803,106) under the final budgeted amount.
There were minor budget adjustments during the fiscal year to the final revenue budget.
Revenues overall were approximately 9.1% below the budgeted estimates. The General Fund revenue final budget vs. actual breakdown is as follows:
• Taxes were $330,571 over the budget estimates primarily due to increased sales tax. • Licenses and permits were $345,379 over budget estimates due to increased building activity compared to projected amounts.
• Intergovernmental were $495,767 over budget estimates primarily due to an unexpected increase from property related revenue.
• Charges for services came in at $3,111,712 below budgeted figures due to decreased development activity.
• Fines and forfeitures were $13,091 under budget estimates due to revenue from vehicle code fines did not meet expectations.
• Investment earnings were of $84,362 over budget due to a transition to a diversified investment portfolio.
• Other revenue were $65,618 over budget due to unanticipated reimbursement for staffing services.
Differences between the final budget and the actual expenditures for the operating departments varied considerably.
• General government was $24,132 over budget estimates due to savings from delayed projects.
• Building & safety was $282,074 under budget estimates due to staffing shortages. • Community services was $151,785 over budget estimates about half of which was due to part time staffing costs not being realized until after the fiscal year end. • Financial services was $97,537 under budget estimates due to salary savings from staffing shortages.
• Planning was $377,605 under budget estimates due to salary savings from staffing shortages.
• Police $1,224,046 under budget estimates due to salary savings from multiple vacant positions.
• Public works was $1,693,102 over budget estimates due to a corrected prior year expenditure that had no budget allocated for this year as well as an administrative error in budget transfers.
Overall, the General Fund expenditures came in under budget by $112,243 or 0.6% of budgeted estimates.
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79 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Revenues
Taxes 330,571 $
Licenses and permits 345,379
Intergovernmental 495,767
Charges for services (3,111,712)
Fines and forfeitures (13,091)
Investment earnings 84,362
Other revenue 65,618
Total Revenue Over/(Under) Budget (1,803,106) $
Expenditures
General government (24,132) $
Building and safety 282,074
Community services (151,785)
Financial services 97,537
Planning 377,605
Police 1,224,046
Public works (1,693,102)
Total Expenditures (Over)/Under Budget 112,243 $
General Fund Budgetary Highlights
Table 4
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $176,598,271 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements other than buildings, machinery and equipment, as well as construction in progress.
The value of the City’s assets increased by $8,208,647 during this reporting period. Additional information on the City’s capital assets can be found in Note 5 of this report. (Net of Depreciation)
Governmental Business-Type
Activities Activities Total
Land 1,045,317 $ 7,104,082 $ 8,149,399 $
Construction in progress 12,585,089 25,000,356 37,585,445 Buildings and system 1,444,081 66,506,203 67,950,284
Machinery and equipment 1,944,245 26,515,984 28,460,229 Water rights - 13,834,827 13,834,827
Improvements other than buildings 19,746,816 871,271 20,618,087 Total Capital Assets 36,765,548 $ 139,832,723 $ 176,598,271 $ Table 5
Capital Assets
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80 City of Santa Paula
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $111,554,049 (excluding pension/OPEB liabilities, compensated absences and claims liability).
This is a decreases of $3,405,678 from the prior year’s level of $114,959,727. Governmental activities have no outstanding debt. Business-type activities debt decreased by $3,405,678, largely due to refunding of debt and principal payments for the Enterprise Revenue bonds.
Additional information on the City’s long-term debt can be found in Note 7 of this report.
Business-Type
Activities Total
Lease Revenue Bonds:
Water 2019 $ 30,170,000 $ 30,170,000
Add: Premium 5,287,123 5,287,123
Wastewater 2015A 7,355,000 7,355,000
Wastewater 2020A 3,765,000 3,765,000
Add: Premium 670,426 670,426
Wastewater 2020B 63,810,000 63,810,000
Notes payable 496,500 496,500
Total $ 111,554,049 $ 111,554,049
Table 6
Outstanding Debt
Next Year’s Budgets and Rates
In 2019 the Council adopted a five-year water and sewer rate increase. The first increase went into effect on January 1, 2020. Additional increases will occur at the start of every fiscal year through July 1, 2024.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City, Finance Director, P. O. Box 569, Santa Paula, CA 93061.
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81 BASIC FINANCIAL STATEMENTS
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83 City of Santa Paula
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -13-
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 35,190,639 $ 33,679,432 $ 68,870,071 $ Cash - restricted 4 3,300,177 3,300,181
Receivables:
Accounts and interest 3,365,220 3,938,912 7,304,132
Loans, net of allowance 333,930 - 333,930
Prepaids 13,287 383,351 396,638
Capital assets, not being depreciated 13,630,406 45,939,265 59,569,671 Capital assets, net of accumulated depreciation 23,135,142 93,893,458 117,028,600 Total Assets 75,668,628 181,134,595 256,803,223
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refundings - 10,160,668 10,160,668
Pension related 10,776,623 1,483,677 12,260,300
OPEB related 324,932 103,174 428,106
Total Deferred Outflows of Resources 11,101,555 11,747,519 22,849,074
LIABILITIES
Accounts payable and accrued liabilities 1,669,215 2,676,827 4,346,042 Accrued interest payable - 1,615,887 1,615,887
Deposits 1,683,418 - 1,683,418
Noncurrent Liabilities:
Due within one year 492,611 3,599,488 4,092,099
Current OPEB liability 110,055 34,945 145,000
Due more than one year 492,610 108,017,831 108,510,441
Net pension liability 30,181,175 4,086,320 34,267,495
Total OPEB liability 1,406,636 446,640 1,853,276
Total Liabilities 36,035,720 120,477,938 156,513,658
DEFERRED INFLOWS OF RESOURCES
Pension related 1,834,290 336,691 2,170,981
OPEB related 1,869,415 593,583 2,462,998
Total Deferred Inflows of Resources 3,703,705 930,274 4,633,979
NET POSITION
Net investment in capital assets 36,765,548 41,724,034 78,489,582 Restricted for:
Capital projects 454,896 3,284,692 3,739,588
Development 5,299,712 - 5,299,712
Public safety 85,343 - 85,343
Rate stabilization - 100,000 100,000
Street projects 7,811,989 - 7,811,989
Transportation and other purposes 6,388,144 - 6,388,144 Trust and endowments:
Expendable 232,422 - 232,422
Nonexpendable 889,643 - 889,643
Unrestricted (10,896,939) 26,365,176 15,468,237
Total Net Position $ 47,030,758 $ 71,473,902 $ 118,504,660 DRAFT
Subject To Change
84 City of Santa Paula
Statement of Activities
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -14-
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Charges Operating Capital
for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:
General government 2,575,275 $ 297,924 $ 558,856 $ (21,189) $ (1,739,684) $ - $ (1,739,684) $ Building and safety 711,834 804,519 - - 92,685 - 92,685 Community services 4,018,216 334,408 593,710 164,011 (2,926,087) (2,926,087) - Financial services 712,448 15,004 - - (697,444) - (697,444) Fire 12,986 - - - (12,986) - (12,986)
Planning 1,035,224 60,196 - - (975,028) - (975,028)
Police 9,328,564 140,485 2,649,443 5,950 (6,532,686) (6,532,686) - Public works 3,089,091 340,638 2,378,644 1,526,560 1,156,751 - 1,156,751 Total Governmental Activities 21,483,638 1,993,174 6,180,653 1,675,332 (11,634,479) (11,634,479) - Business-type Activities:
Water 8,694,144 13,471,612 - - - 4,777,468 4,777,468
Sewer 9,587,953 13,702,735 - - - 4,114,782 4,114,782
Total Business-type Activities 18,282,097 27,174,347 - - - 8,892,250 8,892,250 Total Government $ 39,765,735 $ 29,167,521 $ 6,180,653 $ 1,675,332 (11,634,479) 8,892,250 (2,742,229) General Revenues:
Property taxes 5,648,445 - 5,648,445
Sales taxes 7,850,347 - 7,850,347
Transient occupancy taxes 83,355 - 83,355
Franchise taxes 1,312,395 - 1,312,395
Business license taxes 127,429 - 127,429
Unrestricted investment earnings 345,638 1,769,451 2,115,089 Miscellaneous revenues 169,036 - 169,036
Gain on disposal - 109,000 109,000
Total General Revenues and Transfers 15,536,645 1,878,451 17,415,096 Change in Net Position 3,902,166 10,770,701 14,672,867
Net Position, Beginning 43,128,592 60,703,201 103,831,793 Net Position, Ending $ 47,030,758 $ 71,473,902 $ 118,504,660 DRAFT
Subject To Change
85 City of Santa Paula
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -15-
Non-major Total
Governmental Governmental
General Funds Funds
ASSETS
Cash and investments $ 12,470,975 $ 22,719,664 $ 35,190,639 Cash - restricted 4 - 4
Receivables:
Accounts and interest 2,808,672 556,548 3,365,220
Loans receivable 4,430 329,500 333,930
Due from other funds 227,517 - 227,517
Prepaids 12,915 372 13,287
Total Assets $ 15,524,513 $ 23,606,084 $ 39,130,597
LIABILITIES
Accounts payable and accrued liabilities 1,266,487 $ 402,728 $ 1,669,215 $ Deposits 1,683,418 - 1,683,418
Due to other funds - 227,517 227,517
Total Liabilities 2,949,905 630,245 3,580,150
FUND BALANCE (DEFICITS)
Nonspendable 17,345 890,015 907,360
Restricted 4 22,322,716 22,322,720
Assigned 5,568,941 - 5,568,941
Unassigned 6,988,318 (236,892) 6,751,426
Total Fund Balances 12,574,608 22,975,839 35,550,447
Total Liabilities and Fund Balances 15,524,513 $ $ 23,606,084 $ 39,130,597 DRAFT
Subject To Change
86 City of Santa Paula
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -16-
Fund balances of governmental funds $ 35,550,447
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 36,765,548
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability and Total OPEB Liability are not reported in the funds.
Deferred outflows related to pensions 10,776,623 $
Deferred inflows related to pensions (1,834,290)
Deferred outflows related to OPEB 324,932
Deferred inflows related to OPEB (1,869,415) 7,397,850
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.
Compensated absences (599,784)
Claims liabilities (385,437)
Net pension liability (30,181,175)
Total OPEB liability (1,516,691) (32,683,087)
Net position of governmental activities $ 47,030,758
DRAFT
Subject To Change
87 City of Santa Paula
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -17-
(Formerly major) (Formerly major)
Federal Facility
General Grants Capital Projects
REVENUES
Taxes 14,595,443 $
Licenses and permits 599,985
Intergovernmental 1,263,246
Charges for services 1,100,553
Fines and forfeitures 81,909
Investment earnings 254,862
Other revenues 75,718
Total Revenues 17,971,716
EXPENDITURES
Current:
General government 2,510,195
Building and safety 553,748
Community services 2,869,130
Financial services 690,887
Planning 786,132
Police 8,667,036
Public works 1,805,912
Total Expenditures 17,883,040
Excess (Deficiency) of Revenues
over Expenditures 88,676
OTHER FINANCING SOURCES (USES)
Transfers in -
Transfers out (24,437)
Total Other Financing Sources (Uses) (24,437)
Net Change in Fund Balances 64,239
Fund Balances, Beginning, as previously reported 12,510,369 5,073,511 $ 3,871,686 $ Change within financial reporting entity (major to non-major) - (5,073,511) (3,871,686) Fund Balances, Beginning, as restated 12,510,369 - -
Fund Balances, Ending 12,574,608 $ - $ - $
DRAFT
Subject To Change
88 (concluded)
-18-
Non-major Total
Governmental Governmental
Funds Funds
$ 14,963,100 367,657 $
599,985 -
4,780,239 3,516,993
3,813,129 2,712,576
81,909 -
1,340,006 1,085,144
85,708 9,990
25,664,076 7,692,360
2,807,882 297,687
553,748 -
4,163,264 1,294,134
722,720 31,833
1,045,496 259,364
8,737,608 70,572
4,070,851 2,264,939
22,101,569 4,218,529
3,562,507 3,473,831
440,806 440,806
(440,806) (416,369)
- 24,437
3,562,507 3,498,268
31,987,940 10,532,374
- 8,945,197
31,987,940 19,477,571
$ 35,550,447 22,975,839 $
DRAFT
Subject To Change
89 City of Santa Paula
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -19-
Net change in fund balances-total governmental funds $ 3,562,507 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 cost of these assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay of $2,981,172 exceeded depreciation $1,932,426, in the current period. 1,048,746
Certain revenues are recorded as unavailable revenue in the governmental funds because they do not meet the revenue recognition criteria of availability. However, they are included as revenue in the Government-Wide Statement of Activities. (278,272) The issuance of long-term debt (e.g., bonds, leases) 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 assets. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.
Pension related net adjustments $ (862,290)
OPEB related net adjustments 103,792 (758,498)
Claims and judgments expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. 274,147
Compensated absences reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The following represents the net change in compensated absences in the current period. 53,536
Change in net position of governmental activities $ 3,902,166 DRAFT
Subject To Change
90 City of Santa Paula
Statement of Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -20-
Business-type Activities - Enterprise Funds
Utility Authority
Water Sewer Totals
ASSETS
Current assets:
Cash and investments 21,982,444 $ 11,696,988 $ 33,679,432 $ Receivables 2,232,143 1,706,769 3,938,912
Prepaids 79,445 303,906 383,351
Total Current Assets 24,294,032 13,707,663 38,001,695
Noncurrent assets:
Restricted cash:
Cash with fiscal agents 3,284,692 15,485 3,300,177
Capital Assets:
Land 2,356,451 4,747,631 7,104,082
Water rights 13,834,827 - 13,834,827
Buildings 12,251,164 74,097,756 86,348,920
Improvements 28,574,721 8,264,092 36,838,813
Machinery and equipment 2,806,021 246,761 3,052,782
Construction in progress 10,976,207 14,024,149 25,000,356 Less: Accumulated depreciation (17,568,414) (14,778,643) (32,347,057) Total Capital Assets (Net of
Accumulated Depreciation) 53,230,977 86,601,746 139,832,723 Total Noncurrent Assets 56,515,669 86,617,231 143,132,900 Total Assets 80,809,701 100,324,894 181,134,595
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refundings - 10,160,668 10,160,668
Pension related 1,483,677 - 1,483,677
OPEB related 103,174 - 103,174
Total Deferred Outflows of Resources 1,586,851 10,160,668 11,747,519
LIABILITIES
Current liabilities:
Accounts payable 1,809,535 867,292 2,676,827
Interest payable 572,252 1,043,635 1,615,887
Compensated absences 63,270 - 63,270
Bonds payable - current 2,084,281 1,451,937 3,536,218
Total Current Liabilities 4,529,338 3,362,864 7,892,202 Noncurrent liabilities
Bonds payable 33,372,842 74,148,489 107,521,331
Notes payable 496,500 - 496,500
Net pension liability 4,086,320 - 4,086,320
Total OPEB liability 481,585 - 481,585
Total Noncurrent Liabilities 38,437,247 74,148,489 112,585,736 Total Liabilities 42,966,585 77,511,353 120,477,938
DEFERRED INFLOWS OF RESOURCES
Pension related 336,691 - 336,691
OPEB related 593,583 - 593,583
Total Deferred Inflows of Resources 930,274 - 930,274
NET POSITION
Net investment in capital assets 20,562,046 21,161,988 41,724,034 Restricted for:
Capital projects 3,284,692 - 3,284,692
Rate stabilization - 100,000 100,000
Unrestricted 14,652,955 11,712,221 26,365,176
Total Net Position $ 38,499,693 $ 32,974,209 $ 71,473,902 DRAFT
Subject To Change
91 City of Santa Paula
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Business-type Activities - Enterprise Funds
Utility Authority
Water Sewer Totals
OPERATING REVENUES
Sales and services $ 13,447,877 $ 13,688,794 $ 27,136,671 Other revenues 23,735 13,941 37,676
Total Operating Revenues 13,471,612 13,702,735 27,174,347
OPERATING EXPENSES
Cost of sales and services 3,638,668 4,204,150 7,842,818 Administration 2,883,937 1,391,800 4,275,737
Depreciation 1,079,320 1,151,936 2,231,256
Total Operating Expenses 7,601,925 6,747,886 14,349,811 Operating Income 5,869,687 6,954,849 12,824,536
NONOPERATING REVENUES (EXPENSES)
Investment earnings 1,232,676 536,775 1,769,451
Interest expense (1,092,219) (2,840,067) (3,932,286)
Proceeds from sale of property and water rights 109,000 - 109,000 Total Nonoperating Revenues (Expenses) 249,457 (2,303,292) (2,053,835) Income Before Transfers 6,119,144 4,651,557 10,770,701
Transfers in 269,723 - 269,723
Transfers out - (269,723) (269,723)
Total Transfers 269,723 (269,723) -
Change in Net Position 6,388,867 4,381,834 10,770,701
Total Net Position, Beginning 32,110,826 28,592,375 60,703,201 Total Net Position, Ending $ 38,499,693 $ 32,974,209 $ 71,473,902 DRAFT
Subject To Change
92 City of Santa Paula
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -22-
Utility Authority
Water Sewer Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 13,473,281 $ 13,942,855 $ 27,416,136 $ Payments to suppliers (3,976,879) (6,110,226) (10,087,105) Payments to employees for salaries and benefits (1,996,840) (228,430) (2,225,270) Net cash provided by (used for) operating activities 7,499,562 7,604,199 15,103,761
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in 269,723 - 269,723
Transfers out - (269,723) (269,723)
Net cash provided by (used for) noncapital financing activities 269,723 (269,723) -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (5,612,864) (3,778,293) (9,391,157) Proceeds from sale of property and water rights 109,000 - 109,000 Interest paid on capital debt (1,466,083) (2,555,427) (4,021,510) Principal paid on capital debt (1,660,000) (1,385,000) (3,045,000) Net cash provided by (used for) capital and related
financing activities (8,629,947) (7,718,720) (16,348,667)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 1,232,676 536,775 1,769,451
Net cash provided by (used for) investing activities 1,232,676 536,775 1,769,451 Net increase in cash and cash equivalents 372,014 152,531 524,545 Cash and cash equivalents, beginning 24,895,122 11,559,942 36,455,064 Cash and cash equivalents, ending $ 25,267,136 $ 11,712,473 $ 36,979,609
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE
AMOUNTS REPORTED ON THE STATEMENT OF NET POSITION
Cash and investments $ 21,982,444 $ 11,696,988 $ 33,679,432 Restricted cash with fiscal agent 3,284,692 15,485 3,300,177 $ 25,267,136 $ 11,712,473 $ 36,979,609
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating income $ 5,869,687 $ 6,954,849 $ 12,824,536
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 1,079,320 1,151,936 2,231,256
(Increase) decrease in receivables 1,669 240,120 241,789 (Increase) decrease in prepaids 844 9,397 10,241
(Increase) decrease in deferred outflows - pensions (36,673) - (36,673) (Increase) decrease in deferred outflows - OPEB 21,692 - 21,692 Increase (decrease) in accounts payable 334,419 (752,103) (417,684) Increase (decrease) in compensated absences 15,604 - 15,604 Increase (decrease) in deferred inflows - pension (173,424) - (173,424) Increase (decrease) in deferred inflows - OPEB (38,952) - (38,952) Increase (decrease) in net pension liability 386,846 - 386,846 Increase (decrease) in total OPEB liability 38,530 - 38,530 Net cash provided by (used for) operating activities $ 7,499,562 $ 7,604,199 $ 15,103,761 DRAFT
Subject To Change
93 City of Santa Paula
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Harvest CFD
East Area 1
Custodial Fund
PBID
Custodial Fund
Successor
Agency
Private-purpose
Trust Fund
ASSETS
Cash and investments 1,691,522 $ 220,535 $ 326,427 $
Restricted cash and investments 1,669,282 - 296,906
Receivables
Accounts - 726 -
Interest 12,343 1,470 1,697
Loans, net - - 940
Total Assets 3,373,147 222,731 625,970
LIABILITIES
Accounts payable 14,080 - -
Accrued liabilities 581 - -
Interest payable 472,738 - 7,933
Bonds payable 19,964,075 - 299,303
Total Liabilities 20,451,474 - 307,236
NET POSITION (DEFICIT)
Net position held for other agencies (17,078,327) $ 222,731 $ 318,734 $ DRAFT
Subject To Change
94 City of Santa Paula
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Harvest CFD
East Area 1
Custodial Fund
PBID
Custodial Fund
Successor
Agency
Private-purpose
Trust Fund
ADDITIONS
Property tax collections for other agencies 1,959,075 $ 84,192 $ 63,358 $ Interest income 145,566 10,023 33,205
Total Additions 2,104,641 94,215 96,563
DEDUCTIONS
Administrative costs 56,869 73,377 3,359
Payments to others on behalf of other agencies 1,429,544 - 28,014 Total Deductions 1,486,413 73,377 31,373
Change in Net Position 618,228 20,838 65,190
Net Position (Deficit), Beginning, (17,696,555) 201,893 253,544 Net Position (Deficit), Ending $ (17,078,327) $ 222,731 $ 318,734 .
DRAFT
Subject To Change
95 City of Santa Paula
Notes to Financial Statements
June 30, 2024
-25-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of Reporting Entity
The City of Santa Paula (the City) is a municipal corporation operating as a general law city governed by a city council of five members. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City.
Blended Component Units
The Santa Paula Public Financing Authority (the Authority) is governed by the City Council of the City. Although it is legally separate from the City, the Authority is reported as if it were part of the primary government because its sole purpose is to finance and construct the City’s public facilities.
The Santa Paula Utility Authority (the Utility Authority) was established through a Joint Powers Agreement between the City and the Redevelopment Agency. The members of the Board of Directors of the Utility Authority are the members of the City Council of the City.
The Utility Authority was established to provide financing, for purposes which are authorized by law and which could lease, own, operate, and maintain the water and wastewater enterprise, and any other utility system or service leased to the Utility Authority by the City or acquired by the Utility Authority. The Utility Authority is reported as enterprise funds.
Separate financial statements are not prepared for the Santa Paula Public Financing Authority or the Santa Paula Utility Authority.
B) Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all the nonfiduciary activities of the City and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
DRAFT
Subject To Change
96 City of Santa Paula
Notes to Financial Statements
June 30, 2024
-26-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B) Government-wide and Fund Financial Statements (continued) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter, if any, are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds’ and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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 and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual, and therefore have been recognized as revenues within the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue within the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The City reports the following major proprietary funds:
The water and sewer funds account for the operation of the City’s water distribution system and the City’s sewage treatment plant, and sewage pumping stations.
DRAFT
Subject To Change
97 City of Santa Paula
Notes to Financial Statements
June 30, 2024
-27-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
The City reports the following fiduciary funds:
Harvest CFD East Area 1 Custodial Fund and the PBID Custodial Fund account for the assets held by the City in a custodial capacity. These funds include the collection of special assessments levied on various Assessment Districts and Community Facilities Districts property owners for the payment of debt service on no commitment debt.
The Successor Agency Private-Purpose Trust Fund accounts for the wind down activities of the Santa Paula Redevelopment Agency.
As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. In the fund financial statements, quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursement to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursement fund and as revenues in the fund that is reimbursed. All other interfund transaction except quasi-external transactions and reimbursements are reported as transfers.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
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 principle ongoing operations.
The principle operating revenues of the City’s enterprise funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise 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.
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.
DRAFT
Subject To Change
98 City of Santa Paula
Notes to Financial Statements
June 30, 2024
-28-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements GASB Statement No. 100 – the City adopted GASB Statement No. 100, Accounting Changes and Error Corrections. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. See Note 16 for details.
E) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to /deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
F) Other Postemployment Benefits (OPEB)
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan, if any, (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position, if any, have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: June 30, 2022 Valuation Date, June 30, 2024 Measurement Date, July 1, 2023 through June 30, 2024 Measurement Period.
DRAFT
Subject To Change
99 City of Santa Paula
Notes to Financial Statements
June 30, 2024
-29-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position
1) Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short term investments (including restricted assets) with original maturities of three months or less from the date of acquisition. For purposes of the statement of cash flows, cash equivalents represents demand deposits of proprietary funds held in financial institutions or in cash management pools where funds can be added or withdrawn at anytime without prior notice or penalty and with a maturity of three months or less from the date of acquisition.
Investments are included within the financial statement caption “Cash and Investments.” Investments for the government, as well as for its component units, are stated at their 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. The Local Agency Investment Fund operates in accordance with the appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
2) Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
All trade and property taxes receivable are shown net of an allowance for uncollectibles.
Property taxes in the State of California are administered for all local agencies at the County level, and consist of secured, unsecured, and utility tax rolls.
Property taxes are levied as of January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property, as it exists at the time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
DRAFT
Subject To Change
100
City of Santa Paula
Notes to Financial Statements
June 30, 2024
-30-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position or Equity (continued) 2) Receivables and Payables (continued)
Tax levies are limited to 1% of full market value which results in a tax of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.
The Assessor of the County of Ventura establishes property valuations for the secured and unsecured property tax rolls; the State Board of Equalization values the utility property tax roll. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.
Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property may be paid in two installments; the first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on February 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.
Due to the nature of the City-wide maximum levy, it is not possible to identify generalpurpose tax rates for specific entities. Under state legislation adopted subsequent to the passage of Proposition 13, appropriations to local agencies are made by the County Auditor-Controller based primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year 1979.
The State of California FY 90-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administration fees withheld during the fiscal year. 3) Restricted Assets
Certain proceeds of the City’s tax allocation refunding bonds and the enterprise fund lease revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants.
DRAFT
Subject To Change
101
City of Santa Paula
Notes to Financial Statements
June 30, 2024
-31-
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position (continued)
4) Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000, or $25,000 for capital projects. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets received prior to the implementation of GASB 72 were recorded at fair value on the date of donation. Donated capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received.
The costs of normal maintenance and repairs that do not add to the value of the asset or materiality extend assets lives are not capitalized.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:
Years
Buildings 30-50
Building improvements 10-30
Infrastructure 25-60
Vehicles 3-10
Equipment 7-10
Computer equipment 5
5) Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Cash compensations for accrued vacations are generally not payable until the employee terminates employment with the City. All vacation pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in the government funds only if they have matured, for example, as a result of employee resignations and retirements. 6) Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position (continued)
6) Long-term Obligations (continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. 7) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and balance sheet for the governmental funds will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net assets that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City currently has two items that qualify for reporting in this category. The first is the deferred charge on refunding reported in the government-wide statement of net position and the statement of net position - proprietary funds. A deferred charge on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other items that qualify for reporting in this category are a result of the City’s implementation of GASB Statement No. 68 and 75.
In addition to liabilities, the statement of financial position and balance sheet for the governmental funds will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, which arises only under the modified accrual basis of accounting, and others, which are a result of the City’s implementation of GASB Statement No. 68 and 75, which qualify for reporting in this category. Under the modified accrual basis of accounting, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
8) Net Position
In the Government-wide, proprietary funds, and fiduciary fund financial statements, net position is classified in the following categories.
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position (continued)
8) Net Position (continued)
Net Investment in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category.
Restricted Net Position
This category presents external restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position
This category represents net position that does not meet the definition of “net investment in capital assets” or “restricted net position.”
9) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.
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1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G) Assets, Liabilities, and Net Position (continued)
10) Fund Balance
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.
Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts that may be specified by the City Council by ordinance or resolution to formally commit part of the City’s fund balances or future revenues for a specific purpose(s) or program. To change or repeal any such commitment will require an additional formal City Council action utilizing the same formal action by City Council in the form of a ordinance or resolution to remove.
Assigned Fund Balance - Amounts that are constrained by the Council's intent to use specified financial resources for specific purposes, but are neither restricted nor committed.
Unassigned Fund Balance - These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances.
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2) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Deficit Fund Equity
The following non-major funds had deficit fund balances at June 30, 2024:
Nonmajor Governmental Funds:
Special Revenue Funds:
Mobile Home Rent Review (66,524) $
NPDES Storm Water Quality (164,939)
Capital Projects Funds:
Park Bond Grant (2,763)
Federal STP Grant (2,666)
Fiduciary Funds:
Harvest CFD East Area 1 Custodial Fund (17,078,327)
These deficits are expected to be reduced by future revenue or transfers from other funds. 3) CASH AND INVESTMENTS
The City’s cash and investments consist of the following at June 30, 2024:
Statement of Net Position:
Cash and investments 68,870,071 $
Restricted cash and investments 3,300,181
Statement of Fiduciary Net Position:
Cash and investments with fiscal agent 2,238,484
Restricted cash and investments 1,966,188
Total Cash and Investments 76,374,924 $
Cash and Investments consist of the following:
Petty cash $ 4,100
Deposits with financial institutions 9,121,730
Investments 67,249,094
Total Cash and Investments $ 76,374,924
Investments Authorized by the California Government Code and the City’s Investment Policy The investments are managed by the City Treasurer and Fiscal agents (Bond trustees acting in accordance with bond covenants). Investments managed by the City Treasurer are invested in accordance with the City’s investment policy. Investments managed by bond trustees are invested in accordance with provisions of the respective bond agreements, which generally are in accordance with provisions of the California Government Code 53601.
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3) CASH AND INVESTMENTS (continued)
Investments Authorized by the California Government Code and the City’s Investment Policy (continued)
The City Treasurer has direct oversight over the City’s pooled investment fund which covers cash and cash equivalents of the City’s governmental funds, enterprise funds, and agency funds which are invested in accordance with the City’s investment policy. The investment policy generally complies with California Government Code Section 53601. The table below identifies the investment types that are authorized by the City’s investment policy and the California Government Code. The table also identifies certain provisions that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Percentage Investment Minimum
Investment Type Maturity of Portfolio in One Issuer Ratings Local Agency Investment Fund N/A None None None
Ventura County Pool N/A None None None
U.S. Treasury 3 years None None None
U.S. Agencies 3 years 20% None AAA
State Municipal Securities 5 years None None AA
California Local Agency Municipal Securities 5 years None None AA Non-Negotiable Certificates of Deposit 5 years 20% None A Negotiable Certificates of Deposits (CDs) 5 years 30% 15% AAA Placement Service Deposits 5 years 30% None None
Medium Term Corporate Notes 5 years 30% None AA
Asset-Backed Securities 4 years 20% None AA
Commercial Paper 270 days 25% 10% Prime
Bankers Acceptances 180 Days 40% 2% None
Money Market and Mutual funds N/A 20% 20% AAA
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 rates 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’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Remaining Maturity (in Months)
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
Local Agency Investment Fund 35,077,512 $ - $ - $ 35,077,512 $ U.S. Treasury 4,528,750 1,549,033 4,767,236 10,845,019
U.S. Agencies 1,848,877 1,640,129 3,800,902 7,289,908
Negotiable Certificates of Deposits (CDs) 313,384 - - 313,384 Agency CMBS 673,037 749,313 1,772,373 3,194,723
Medium Term Corporate Notes 1,103,254 2,281,671 3,099,597 6,484,522 Asset-Backed Securities 260,462 120,597 2,274,441 2,655,500 Money Market and Mutual funds 51,852 - - 51,852
Suprational Obligations 558,938 491,750 285,986 1,336,674 Total 44,416,066 $ 6,832,493 $ 16,000,535 $ 67,249,094 $ DRAFT
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City of Santa Paula
Notes to Financial Statements
June 30, 2024
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3) CASH AND INVESTMENTS (continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.
Minimum Not
Investment Type Legal Rating Rated A/AA/AAA+- Total
Local Agency Investment Fund N/A 35,077,512 $ - $ 35,077,512 $ U.S. Treasury - 10,845,019 10,845,019
U.S. Agencies - 7,289,908 7,289,908
Negotiable Certificates of Deposits (CDs) - 313,384 313,384 Agency CMBS 3,194,723 3,194,723
Medium Term Corporate Notes 6,484,522 - 6,484,522
Asset-Backed Securities 708,542 1,946,958 2,655,500
Money Market and Mutual funds - 51,852 51,852
Suprational Obligations 1,336,674 - 1,336,674
Total $ 31,463,040 35,786,054 $ $ 67,249,094
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than external investment pools) that represent 5% or more of total City investments.
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 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, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government 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.
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3) CASH AND INVESTMENTS (continued)
Custodial Credit Risk (continued)
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 investments.
With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investments in securities through the use of mutual funds or government investment pools (such as LAIF).
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Fair Value of Investments
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
4) RECEIVABLES
Receivables as of year-end for the City’s individual major funds and non-major funds in the aggregate, are as follows:
General Water Sewer Nonmajor and Total
Fund Utility Utility Other Funds Receivables
Receivables:
Interest $ 65,485 $ 163,088 $ 83,607 $ 173,310 $ 485,490 Accounts 2,743,187 2,069,055 1,623,162 383,238 6,818,642 Total Receivables 2,808,672 $ $ 2,232,143 $ 1,706,769 $ 556,548 $ 7,304,132 DRAFT
Subject To Change
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City of Santa Paula
Notes to Financial Statements
June 30, 2024
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5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024, was as follows:
Governmental Activities: Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not depreciated:
Land 489,183 $ 556,134 $ - $ 1,045,317 $
Construction in progress 10,752,759 1,832,330 - 12,585,089 Total capital assets, not
depreciated 11,241,942 2,388,464 - 13,630,406
Capital assets, being depreciated:
Buildings and system 3,446,262 - - 3,446,262
Machinery and equipment 5,519,559 592,708 - 6,112,267
Improvements other than buildings 37,727,777 - - 37,727,777 Total capital assets, being depreciated 46,693,598 592,708 - 47,286,306 Less accumulated depreciation:
Buildings and system (1,894,212) (107,969) - (2,002,181) Machinery and equipment (3,880,322) (287,700) - (4,168,022) Improvements other than buildings (16,444,204) (1,536,757) - (17,980,961) Total accumulated depreciation (22,218,738) (1,932,426) - (24,151,164) Net capital assets being depreciated 24,474,860 (1,339,718) - 23,135,142 Governmental activities, capital assets, net 35,716,802 $ 1,048,746 $ - $ 36,765,548 $ DRAFT
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5) CAPITAL ASSETS (continued)
Business-Type Activities: Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not depreciated:
Land $ 7,104,082 $ - $ - $ 7,104,082
Water rights 13,834,827 - - 13,834,827
Construction in progress 15,647,769 9,352,587 - 25,000,356 Total capital assets, not
depreciated 36,586,678 9,352,587 - 45,939,265
Capital assets, being depreciated:
Buildings and system 86,348,920 - - 86,348,920
Improvements other than buildings 36,838,813 - - 36,838,813 Machinery and equipment 3,014,212 38,570 - 3,052,782
Total capital assets, being depreciated 126,201,945 38,570 126,240,515 - Less accumulated depreciation:
Buildings and system (18,666,573) (1,176,144) - (19,842,717) Machinery and equipment (9,340,831) (981,998) - (10,322,829) Improvements other than buildings (2,108,397) (73,114) - (2,181,511) Total accumulated depreciation (30,115,801) (2,231,256) - (32,347,057) Net capital assets being depreciated 96,086,144 (2,192,686) - 93,893,458 Business-type activities, capital assets, net 132,672,822 $ $ 7,159,901 $ 139,832,723 - $ Depreciation was charged to functions/programs of the City as follows Governmental activities:
General government 63,828 $
Building and safety 163,706
Community services 608,599
Fire 12,986
Police 106,351
Public works 976,956
$ 1,932,426
Business-type Activities:
Water $ 1,079,320
Sewer 1,151,936
$ 2,231,256
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Notes to Financial Statements
June 30, 2024
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6) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Amounts due to/from other funds are as follows:
Due to/from
Receivable Fund Payable Fund Amount
General Fund Nonmajor governmental funds 227,517 $
The outstanding balances between funds are as a result of funds with negative cash borrowing from the General Fund.
Sewer Fund Advance
On February 1, 2010 the City entered into a Water Enterprise Lease Agreement and a Wastewater Enterprise Lease Agreement with the Santa Paula Utility Authority to lease to the Utility Authority the water and wastewater enterprise owned by the City. Under the terms of the agreements, lease payments were to be made from the Water and Sewer funds’ (which comprise the Utility Authority) surplus revenues to the City for an amount equal to “Total Rent.” Total Rent is defined in the agreements as having an aggregate present value at the date of the agreement of $77,850,759 and $18,083,341 for the water and wastewater enterprises respectively. The lease term extends through February 22, 2065.
In connection with these agreements, the Authority issued its 2010 Wastewater Enterprise Revenue Bonds, and the Sewer Fund transferred to the City’s General Fund an upfront lease rental payment of $5,000,000 to be used for public capital improvements. In 2015, the agreements were amended to add the Santa Paula Wastewater Reclamation Facility and provide for additional rent, and the Authority issued the 2015 Wastewater Enterprise Revenue Bonds. In 2020, the agreements were further amended in connection with the issuance of the 2020 Wastewater Enterprise Revenue Bonds, which refinanced the 2010 and 2015 Bonds.
All required lease payments have since been paid in full. The leases remain in effect for as long as the 2020 Bonds are outstanding; however, no additional payments are owed to the City. Accordingly, no receivable or liability is reported by the City in connection with these lease agreements as of June 30, 2024.
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City of Santa Paula
Notes to Financial Statements
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6) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (continued) Interfund transfers are as follows:
Transfers Out Water Fund
Aggregate
remaining funds Total
General Fund $ - $ 24,437 $ 24,437
Sewer Fund 269,723 - 269,723
Aggregate remaining funds - 416,369 416,369
$ 269,723 $ 440,806 $ 710,529
Transfers In
Transfers were made from the Sewer fund to the Water fund to reimburse various costs.
Transfers were made from the General Fund and Other Governmental Funds to Other Governmental Funds to pay for street projects.
7) LONG-TERM LIABILITIES
Changes in Long-term Liabilities
Long-term debt activity for the year ended June 30, 2024 was as follows:
Balance Balance Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year Governmental Activities:
Compensated absences $ 653,320 $ 341,672 $ (395,208) $ 599,784 $ 299,892 Claims liability 659,584 209,837 (483,984) 385,437 192,719 Total governmental activities $ 1,312,904 $ 551,509 $ (879,192) $ 985,221 $ 492,611 Business-type Activities:
Water Revenue Bonds:
2019 Bonds $ 31,830,000 $ - $ (1,660,000) $ 30,170,000 $ 1,745,000 Add: Premium 5,626,404 - (339,281) 5,287,123 339,281
Wastewater Revenue Bonds:
2015A Bonds 8,345,000 - (990,000) 7,355,000 1,030,000
2020A Bonds 3,765,000 - - 3,765,000 -
Add: Premium 691,823 - (21,397) 670,426 21,937
2020B Bonds 64,205,000 - (395,000) 63,810,000 400,000
Note payable from direct borrowings 496,500 - - 496,500 - Compensated absences 47,666 61,422 (45,818) 63,270 63,270 Total business-type activities 115,007,393 $ $ 61,422 $ (3,451,496) $ 111,617,319 $ 3,599,488 DRAFT
Subject To Change
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City of Santa Paula
Notes to Financial Statements
June 30, 2024
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7) LONG-TERM DEBT (continued)
The General Fund is typically used to liquidate the compensated absences, claims liability, net pension liability, and total OPEB liability of the governmental activities. 2020 Wastewater Revenue Bonds
In October 2020, the Santa Paula Utility Authority, the “Utility Authority” (a component unit of the City) issued the 2020A and 2020B Wastewater revenue bonds in the aggregate amount of $69,125,000. The Bonds were issued to refund the 2010A and 2010B Wastewater Revenue Bonds and a portion of the 2015A Wastewater Revenues bonds, provide financing for improvements to the Water Enterprise System, and pay costs of bond issuance. The Wastewater Bonds are payable from net revenues of the Wastewater Enterprise and other amounts pledged under the Indenture and investment earnings thereon. Interest is payable semi-annually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2055. The interest rate on the bonds ranges from 1.00% to 4.00%.
In the event of default, the Trustee has the right to declare the total unpaid principal of the Bonds, together with the accrued interest thereon to be immediately due and payable.
However, in the event of a default and such acceleration, it is unlikely that the Utility Authority will have sufficient funds to pay the accelerated amounts due on the Bonds from Net Revenues.
Debt service requirements to maturity for the 2020 Wastewater Enterprise Revenue Bonds are as follows:
Fiscal Year
Ending June 30, Principal Interest
2025 $ 400,000 $ 2,226,097
2026 405,000 2,220,905
2027 1,535,000 2,214,336
2028 375,000 2,187,135
2029 400,000 2,172,135
2030-2034 7,730,000 10,357,440
2035-2039 8,915,000 9,111,515
2040-2044 12,330,000 7,338,226
2045-2049 14,530,000 5,137,223
2050-2054 17,165,000 2,489,559
2055 3,790,000 131,968
$ 67,575,000 $ 45,586,539
The net savings and economic gain (loss) from this refunding is unavailable due to the refunded bonds having variable interest rates.
DRAFT
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June 30, 2024
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7) LONG-TERM DEBT (continued)
2019 Water Revenue Bonds
In December 2019, the Santa Paula Utility Authority, the “Utility Authority” (a component unit of the City) issued $37,165,000 aggregate principal amount of Water Enterprise Revenue Bonds, 2019 Series, with proceeds used to effect the advance refunding of $43,550,000 of outstanding Santa Paula Public Financing Authority Water Revenue Bonds, Series 2010, and finance certain improvements to the Authority’s water system. The Water Bonds are payable from net revenues of the Water Enterprise held under the Water Bonds Indenture and investment earnings thereon. Interest is payable semi-annually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2040. The interest rate on the bonds ranges from 3.00% to 5.00%.
In the event of default, the Trustee has the right to declare the total unpaid principal of the Bonds, together with the accrued interest thereon to be immediately due and payable.
However, in the event of a default and such acceleration, it is unlikely that the Utility Authority will have sufficient funds to pay the accelerated amounts due on the Bonds from Net Revenues.
Debt service requirements to maturity for the Water Enterprise Revenue Bonds are as follows:
Fiscal Year
Ending June 30, Principal Interest
2025 $ 1,745,000 $ 1,373,400
2026 1,830,000 1,286,150
2027 1,925,000 1,194,650
2028 2,020,000 1,098,400
2029 2,120,000 997,400
2030-2034 10,975,000 3,312,300
2035-2039 7,805,000 1,311,000
2040 1,750,000 70,000
$ 30,170,000 $ 10,643,300
2015 Wastewater Revenue Bonds
In April 2015, the Utility Authority issued $67,195,000 aggregate principal amount of Wastewater Enterprise Revenue Bonds, 2015A Series, Non-Taxable, and $2,035,000 aggregate principal amount of Wastewater Enterprise Revenue Bonds, 2015B Series, Taxable. Proceeds of the bonds were used to fund a termination payment payable to the operator of the wastewater treatment facility, fund a reserve account, pay issuance costs and, as to a portion of the 2015B Bonds, to pay other capital costs of the Wastewater Enterprise.
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Notes to Financial Statements
June 30, 2024
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7) LONG-TERM DEBT (continued)
2015 Wastewater Revenue Bonds, (continued)
The 2015 Wastewater Revenue Bonds are payable from Net Revenues of the Wastewater Enterprise on parity with the 2010 Wastewater Revenue Bonds. Interest is payable semiannually on August 1st and February 1st of each year with principal maturing on February 1st of each year through 2050. The 2015A Bonds were partially refunded with the issuance of the 2020 Wastewater bonds. The interest rate on the bonds ranges from 3.50% to 5.00%.
In the event of default, the Trustee has the right to declare the total unpaid principal of the Bonds, together with the accrued interest thereon to be immediately due and payable.
However, in the event of a default and such acceleration, it is unlikely that the Utility Authority will have sufficient funds to pay the accelerated amounts due on the Bonds from Net Revenues.
Debt service requirements to maturity for the remaining Wastewater Enterprise Revenue Bonds, 2015A are as follows:
Fiscal Year
Ending June 30, Principal Interest
2025 $ 1,030,000 $ 278,625
2026 1,070,000 237,425
2027 - 183,925
2028 1,180,000 183,925
2029 1,220,000 142,625
2030-2034 1,265,000 322,525
2035 1,590,000 55,650
$ 7,355,000 $ 1,404,700
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June 30, 2024
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7) LONG-TERM DEBT (continued)
2015 Wastewater Revenue Bonds (continued)
Pursuant to each indenture, the Utility Authority covenants to fix, prescribe, revise, and collect rates, fees, and charges for the respective Enterprise as a whole for the services and improvements furnished by the Enterprise during each fiscal year which are at least sufficient, after making allowances for contingencies and error in the estimates, to yield revenues of that Enterprise sufficient to pay the following amounts in the following priority: a) all anticipated service fees due under the DBOF for such fiscal year in the case of the Wastewater Enterprise only; b) all anticipated operation and maintenance costs of the enterprise for such fiscal year; c) all debt service payments as they become due and payable during such fiscal year, without preference or priority, except to the extent such debt service payments are payable from the proceeds of the bonds or from any other source of legally available funds of the Utility Authority which have been deposited for such purpose prior to the commencement of such fiscal year; d) the amount, if any, required to restore the amount in the reserve account to the full amount of the reserve requirement; and e) all other payments required to meet any other obligations of the Utility Authority which are charges, liens, encumbrances upon or payable from the revenues during such fiscal year. The Utility Authority also covenants under the Indenture to fix, prescribe, revise and collect, or cause to be fixed, prescribed, revised and collected, rates, fees and charges for the services and improvements furnished by the Enterprise during each fiscal year that are sufficient to yield net revenues that are at least equal to one hundred twenty percent (120%) of the total debt service payments coming due and payable in such fiscal year.
Notes Payable
On January 2, 1996, the City purchased surface water rights and groundwater rights from the Santa Paula Waterworks, Ltd. by issuing notes for $496,500 at an interest rate of 9.87% per annum. Interest only payments are due annually with principal to be paid in full on January 2, 2026. Debt Service requirements to maturity are as follows:
Fiscal Year
Ending June 30, Principal Interest
2025 $ - $ 73,000
2026 - 73,000
2027 496,500 73,000
$ 496,500 $ 219,000
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7) LONG-TERM DEBT (continued)
Fiduciary Fund
Changes in Long-term Debt
The following is a schedule of changes in long-term debt of the Successor Agency for the fiscal year ended June 30, 2024.
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Bonds payable:
Tax Allocation Refunding Bonds $ 590,000 $ - $ (285,000) $ 305,000 $ 305,000 Unamortized discount (5,697) - - (5,697) -
Total $ 584,303 $ - $ (285,000) $ 299,303 $ 305,000
Tax Allocation Bonds
On March 21, 1994, the Redevelopment Agency of the City adopted a resolution authorizing the sale of $6,900,000 aggregate principal amount of Santa Paula Redevelopment Project 1994 Tax Allocation Refunding Bonds at interest rates ranging from 6.345% to 6.548% for the purpose of retiring $6,000,000 of Tax Allocation Notes issued on November 1, 1992.
The bonds mature on December 1 of each year to 2026 with interest payable semi-annually.
On June 7, 2000, the Agency defeased $2,285,000 of the $6,900,000 Tax Allocation Refunding Bonds by purchasing United States government securities in an irrevocable trust with an escrow agent utilizing existing funds. The bonds are considered to be partially defeased and the related liability has been removed from long-term debt.
Debt service requirements to maturity on the remaining bonds are as follows:
Fiscal Year
Ending June 30, Principal Interest
2025 $ 305,000 $ 37,800
$ 305,000 $ 37,800
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8) FUND BALANCE
The details of the fund balances as of June 30, 2024 are presented below:
Total Non-major
General Governmental
Fund Funds Total
Nonspendable:
Loans receivable 4,430 $ - $ 4,430 $
Prepaids 12,915 372 13,287
Permanent endowments - 889,643 889,643
Total nonspendable 17,345 890,015 907,360
Restricted:
Street work - 6,635,136 6,635,136
Hazard abatement - 694,841 694,841
Development fees - 1,017,182 1,017,182
Public safety - 818,707 818,707
Community development - 10,990,507 10,990,507
Cable television - 209,052 209,052
Inclusionary housing - 1,957,291 1,957,291
Other 4 - 4
Total restricted 4 22,322,716 22,322,720
Assigned:
Capital improvement program 5,367,745 5,367,745
General plan update 201,196 - 201,196
Total committed 5,568,941 - 5,568,941
Unassigned: (236,892) 6,988,318 6,751,426
Total 12,574,608 $ 22,975,839 $ 35,550,447 $
The unassigned category above encompasses fund designations that do not satisfy the criteria of the other categories presented. Included in the $6,988,318 unassigned fund balance of the General Fund is the City Council approved operating reserve of $3,800,135.
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9) RISK MANAGEMENT
1. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 124 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.
2. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
The total funding requirement for self-insurance programs is estimated using actuarial models and prefunded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below.
Liability
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 also 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/.
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9) RISK MANAGEMENT (continued)
2. Self-Insurance Programs of the Authority (continued) Workers’ Compensation
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 2022-23 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.
3. Purchased Insurance
Pollution Legal Liability Insurance
The City of 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. 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 participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $144,455,267. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City 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 property currently has earthquake protection in the amount of $71,280,510. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
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9) RISK MANAGEMENT (continued)
3. Purchased Insurance (continued)
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is facilitated by the Authority.
4. 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 2023-24.
5. Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemented by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid. The following claims schedule includes workers’ compensation and general liability for the past two fiscal years.
Beginning Current Year Claim Payments
of Year Claims and Changes for Current and End of Year
Year Liability in Estimates Prior Years Liability
2021-2022 1,215,216 $ $ 75,116 $ 364,412 $ 925,920
2022-2023 925,920 127,158 393,494 659,584
2023-2024 659,584 209,837 483,984 385,437
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10) CONTINGENT LIABILITIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
The City, as part of a consent judgment entered into on September 24, 2007, was required to construct a new water recycling facility (“WRF”) no later than December 15, 2010. The WRF was constructed and placed into operation prior to the December 15, 2010 deadline.
However, the WRF does not fully comply with the consent judgment, and therefore, may be subject to additional penalties. The amount of penalties, if any, has not been determined.
The City is a defendant in various other lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. 11) PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in five rate plans (three miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.
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11) PENSION PLAN (continued)
A. General Information about the Pension Plan (continued) Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.
The Plan’s provisions and benefits in effect at June 30, 2024 are summarized as follows:
Miscellaneous Miscellaneous Tier II Miscellaneous PEPRA Prior to Prior to On or after
Hire date January 1, 2013 January 1, 2013 January 1, 2013 Benefit formula 2.5% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-60 50-60 52-62
Monthly benefits, as a % of eligible compensation Highest single year Highest single year 3 year average Required employer contribution rates 14.060% 12.470% 7.680% Safety Safety PEPRA
Prior to On of after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-57
Monthly benefits, as a % of eligible compensation 3 year average 3 year average Required employer contribution rates 25.650% 13.540%
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11) PENSION PLAN (continued)
A. General Information about the Pension Plan (continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer 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 contribution requirements are classified as plan member contributions.
Employer Contributions to the Plan for the fiscal year ended June 30, 2024 were $3,217,859. The actual employer payments of $3,211,569 made to CalPERS by the District during the measurement period ended June 30, 2023 differed from the District’s proportionate share of the employer’s contributions of $3,145,466 by $66,103, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
The remainder of this page has been left blank intentionally.
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11) PENSION PLAN (continued)
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Acturial Cost Method
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full 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 2021 experience study report from November 2021 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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11) PENSION PLAN (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 shortterm and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 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:
Asset Class
Assumed Asset
Allocation
Real
Return1,2
Global equity - cap-weighted 30.00% 4.54%
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%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
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11) PENSION PLAN (continued)
B. Net Pension Liability (continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C 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.
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s net pension liability over the measurement period.
Increase (Decrease)
Plan Total Plan Fiduciary Plan Net
Pension Liability Net Position Pension Liability
Balance at: 6/30/2022 (VD) 108,183,922 $ 75,939,461 $ 32,244,461 $ Balance at: 6/30/2023 (MD) 111,501,169 77,233,674 34,267,495 Net Changes during 2022-23 3,317,247 $ 1,294,213 $ 2,023,034 $ VD (Valuation Date); MD (Measurement Date)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the total Plan as of the June 30, 2023 and 2024 measurement dates was as follows:
Proportionate Share - June 30, 2023 0.27915%
Proportionate Share - June 30, 2024 0.27468%
Change - Increase (Decrease) -0.00447%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate::
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Plan's Net Pension
Liability 49,454,484 $ 34,267,495 $ 21,809,074 $
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11) PENSION PLAN (continued)
C. Proportionate Share of Net Pension Liability (continued) Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between
projected and actual earnings
on pension plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all
members that are provided with benefits (active,
inactive and retired) as of the beginning of the
measurement period.
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants:
active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2022), the City’s net pension liability was $32,244,461. For the measurement period ending June 30, 2022 (the measurement date), the City incurred a pension expense/(income) of $4,256,896.
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11) PENSION PLAN (continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources (continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (continued)
As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes in assumptions 2,034,031 $ - $
Differences between expected and actual experience 1,894,016 - Net difference between projected and actual
earnings on plan investments 5,114,394 -
Differences between the employer's contributions and
the employer's proportionate share of contributions - 813,381 Changes in employer's proportion - 1,357,600
Pension contributions subsequent to measurement date 3,217,859 - Total $ 12,260,300 $ 2,170,981
The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $3,217,859 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Fiscal Year Deferred
Ending Outflows/(Inflows)
Fiscal Year of Resources
2025 1,659,333 $
2026 1,108,022
2027 3,959,205
2028 144,900
2029 -
Thereafter -
E. Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended.
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12) OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The City provides the same medical plans to retirees and surviving spouses as to its active employees, with the exception that once a retiree becomes eligible for Medicare, he or she must join a Medicare HMO or a Medicare Supplement plan, with Medicare becoming the primary payer. The plan is a single employer defined contribution post-employment healthcare benefits plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
Benefits Provided - Employees are eligible for retiree health benefits if they retire from the City on or after age 50 and have 5 years of service (age 52 for Miscellaneous PEPRA employees), and continue health insurance through a City-sponsored health insurance plan, the City will contribute the minimum monthly amount (as required by CalPERS) of the health insurance premium ($157 for the calendar years 2023 and 2024 respectively). The City’s health plan does not issue a publicly available financial report.
Employees Covered by Benefit Terms - As of the June 30, 2024 measurement date, the following current and former employees were covered by the benefit terms under the Plan:
Retirees or spouses of retirees
currently receiving benefits 21
Retirees entitled to but not yet receiving benefits 90
Active employees 109
220
Contributions - The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contributions to the Plan are based on the costs to provide the benefits as described above on a pay as you go basis.
For the fiscal year ended June 30, 2024, the City’s pay-as-you-go costs cash benefit payments were $39,236. Total employer contributions, including the implied subsidy, were $65,464.
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12) OTHER POSTEMPLOYMENT BENEFITS (continued)
Total OPEB Liability - The City’s total OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation dated June 30, 2022, based on the following actuarial methods and assumptions:
Valuation Date June 30, 2022
Actuarial Cost Method Entry Age Actuarial Cost
Mortality CalPERS 2000-2019 Experience Study
Age at Retirement 50
Health Care Trend Rate 8.50% for 2025, decreasing to 3.45% in 2076 Inflation Rate 2.50% annually
Salary Changes Aggregate - 2.75% annually
Merit - CalPERS 2000-2019 Experience Study
Discount Rate 3.93% at June 30, 2024 (Bond Buyer 20-Bond Index)
3.65% at June 30, 2023 (Bond Buyer 20-Bond Index)
PEMHCA Rate 3.50% annually
Discount Rate - The discount rate used to measure the total OPEB liability was 3.93% and is based on the Bond Buyer 20-Bond GO index.
Changes in Assumptions - The discount rate used to measure the total OPEB liability was changed to 3.93% from 3.65%. Inflation changed to 2.50% from 2.75%. In addition, the medical claims curve was updated, the implied subsidy was removed for Medicare plans and the mortality scale was updated to Scale MP-2021.
Changes in the Total OPEB Liability
Total OPEB
Liability (TOL)
Balance at June 30, 2023 1,917,989 $
Changes in the year:
Service cost 148,056
Interest on the total OPEB liability 74,216
Assumption changes (76,521)
Benefit payments, including implicit subsidy (65,464)
Net change 80,287
Balance at June 30, 2024 $ 1,998,276
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12) OTHER POSTEMPLOYMENT BENEFITS (continued)
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
1% Decrease Current Rate 1% Increase
(2.93%) (3.93%) (4.93%)
Total OPEB liability 2,293,339 $ 1,998,276 $ 1,757,599 $ Discount Rate
Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the net OPEB liability of the City, as well as what the City’s Net OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentagepoint lower or 1-percentage-point higher than the current healthcare cost trend rate:
1% Decrease Current Rates 1% Increase
Total OPEB liability $ 1,680,224 $ 1,998,276 $ 2,409,097 Healthcare Trend Rate
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2024, the City recognized OPEB income of $16,560. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions 428,106 $ 1,144,223 $
Difference between expected and actual
experience - 1,318,775
Total 428,106 $ 2,462,998 $
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Total OPEB liability will be recognized as OPEB expense as follows:
Year Ending Deferred Inflows
June 30, of Resources
2025 $ (239,330)
2026 (239,332)
2027 (223,471)
2028 (245,113)
2029 (335,907)
Thereafter (751,739)
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City of Santa Paula
Notes to Financial Statements
June 30, 2024
-64-
13) LOANS RECEIVABLE
The City has issued first-time homebuyer and residential rehabilitation loans to low-and moderate-income residents. These loans are to be repaid over a specified period of time or upon sale of the property. As of June 30, 2024, the amount of loans receivable at year-end is $333,930.
14) CONSTRUCTION COMMITMENTS
The estimated amount of remaining construction contract obligations at year-end is $37,846,196.
15) DEBT WITHOUT GOVERNMENT COMMITMENT
The City has various outstanding bond issues which are not reflected in these financial statements. These bond issues are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. No legal obligation on the part of the City exists to make payments on the bonds from any source other than the revenues or assets pledged therefore. The programs are completely administered by trustees, and the total outstanding balance at June 30, 2024 is $36,695,000.
16) PRIOR PERIOD RESTATEMENT
As a result of the implementation of GASB 100, as described in Note 1, the City is required to restate its June 30, 2023, governmental funds’ fund balance, as well as governmental activities’ net position. The Federal Grants and Facility Capital Project Funds were previously reported as a major fund and qualified as nonmajor for the year ending June 30, 2024. This qualifies as a change to or within the financial reporting entity under the guidance of GASB 100. The reclassification of these funds did not result in any changes to the government-wide financial statements’ net position. Changes in fund balance as of June 30, 2023, were as follows:
Federal Grants
Facility Capital
Projects Federal Grants
Facility Capital
Projects
Fund Balance, beginning of year, as previously reported 5,073,511 $ 3,871,686 $ - $ - $ Change from major to nonmajor fund (5,073,511) (3,871,686) 5,073,511 3,871,686 Fund Balance, beginning of year, as restated $ - - $ 5,073,511 $ 3,871,686 $ Balance Sheet Nonmajor
Balance Sheet Governmental Funds Governmental Funds
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REQUIRED SUPPLEMENTARY INFORMATION
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136
City of Santa Paula
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – General Fund
For the Year Ended June 30, 2024
-65-
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 14,264,872 $ $ 14,264,872 $ 330,571 14,595,443 $
Licenses and permits 254,606 254,606 599,985 345,379
Intergovernmental 767,479 767,479 1,263,246 495,767
Charges for services 4,212,265 4,212,265 1,100,553 (3,111,712) Fines and forfeitures 95,000 95,000 81,909 (13,091)
Investment earnings 170,500 170,500 254,862 84,362
Other revenues 10,100 10,100 75,718 65,618
Total Revenues 19,774,822 19,774,822 17,971,716 (1,803,106)
EXPENDITURES
Current:
General government 2,486,063 2,486,063 2,510,195 (24,132) Building and safety 835,822 835,822 553,748 282,074
Community services 2,717,345 2,717,345 2,869,130 (151,785) Financial services 788,424 788,424 690,887 97,537
Planning 1,163,737 1,163,737 786,132 377,605
Police 9,891,082 9,891,082 8,667,036 1,224,046
Public works 1,732,944 112,810 1,805,912 (1,693,102)
Total Expenditures 19,615,417 17,995,283 17,883,040 112,243 Excess (Deficiency) of Revenues
over Expenditures 159,405 1,779,539 88,676 (1,690,863)
OTHER FINANCING SOURCES (USES)
Transfers in 30,000 30,000 - (30,000)
Transfers out (54,437) (54,437) (24,437) 30,000
Total Other Financing
Sources (Uses) (24,437) (24,437) (24,437) -
Net Change in Fund Balance 134,968 1,755,102 64,239 (1,690,863) Fund Balance, Beginning 12,510,369 12,510,369 12,510,369 - Fund Balance, Ending $ 12,645,337 $ 14,265,471 $ (1,690,863) 12,574,608 $ DRAFT
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City of Santa Paula
Required Supplementary Information Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Last 10 Fiscal Years* -66-
2018 2019 2020 2021 2022 2023 2024
Total OPEB Liability
Service cost $ 172,347 $ 165,476 $ 186,457 $ 263,423 $ 275,559 $ 201,209 $ 148,056 Interest on total OPEB liability 109,883 121,523 125,245 104,357 73,033 103,748 74,216 Changes in assumptions (142,751) 194,758 817,178 (430,654) (661,776) (383,966) (76,521) Actual vs. expected experience - - (1,227,322) - - (701,747) - Benefit payments, including implicit subsidy (58,033) (65,697) (63,145) (61,373) (64,242) (61,545) (65,464) Net change in total OPEB liability 81,446 416,060 1,065,735 (1,351,569) (377,426) (842,301) 80,287 Total OPEB liability - beginning 2,926,044 3,007,490 3,423,550 4,489,285 3,137,716 2,760,290 1,917,989 Total OPEB liability - ending $ 3,007,490 $ 3,423,550 $ 4,489,285 $ 3,137,716 $ 2,760,290 $ 1,917,989 $ 1,998,276 Covered-employee payroll $ 5,911,227 $ 7,083,647 $ 7,592,656 $ 7,257,288 $ 11,198,803 $ 9,999,050 $ 10,527,546 Total OPEB liability as a percentage ofcovered-employee payroll 50.88% 48.33% 59.13% 43.24% 24.65% 19.18% 18.98% Notes to the Schedule:Benefit Changes: NoneNo assets are accumulated in a trust that meets the criteria in GASB No. 75, paragraph 4, to pay related benefits.*Fiscal year 2018 was the first year of implementation, therefore, not all 10 years of information is available.
Changes in Assumptions: For the June 30, 2024 measurement date: Discount rate was increased from 3.65% to 3.93%, inflation remained the same as 2.75%; updated CalPERS Experience study to 2000-2019; new medical and PEMHCA minimum trend and participation assumptions updated.
Measurement Period
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City of Santa Paula
Required Supplementary Information
Schedule of the City’s Proportionate Share of the Net Pension Liability Last 10 Fiscal Years
-67-
Measurement Date
Employer's
Proportion of the
Collective Net
Pension Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a percentage of
the Covered
Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of the
Total Pension
Liability
2014 0.2563% 15,947,485 $ $ 5,991,638 266.16% 78.49%
2015 0.2732% 18,748,806 6,552,813 286.12% 74.94%
2016 0.2613% 22,609,596 6,795,547 332.71% 74.06%
2017 0.2529% 25,075,293 6,136,996 408.59% 70.42%
2018 0.2579% 24,852,880 5,911,227 420.44% 71.58%
2019 0.2590% 26,539,944 6,929,552 383.00% 71.36%
2020 0.2611% 28,410,126 7,436,975 382.01% 70.79%
2021 0.3567% 19,288,899 7,257,288 265.79% 80.87%
2022 0.2792% 32,244,461 7,919,478 407.15% 70.19%
2023 0.2747% 34,267,495 7,806,886 438.94% 69.27%
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
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City of Santa Paula
Required Supplementary Information
Schedule of Plan Contributions
Last 10 Fiscal Years
-68-
Fiscal Year
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Contributions as a
Percentage of
Covered Payroll
6/30/2015 $ 2,159,536 $ (2,159,536) $ 6,552,813 - $ 32.96% 6/30/2016 2,324,486 (2,324,486) 6,795,547 - 34.21%
6/30/2017 1,967,182 (1,967,182) 6,136,996 - 32.05%
6/30/2018 2,068,107 (2,068,107) 5,911,227 - 34.99%
6/30/2019 2,372,333 (2,372,333) 6,929,552 - 34.24%
6/30/2020 2,719,034 (2,719,034) 7,436,975 - 36.56%
6/30/2021 2,958,871 (2,958,871) 7,257,288 - 40.77%
6/30/2022 2,955,772 (2,955,772) 7,919,478 - 37.32%
6/30/2023 3,211,569 (3,211,569) 7,806,886 - 41.14%
6/30/2024 3,217,859 (3,217,859) 8,189,929 - 39.29%
Notes to Schedule:
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and rampdown on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019.
In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
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City of Santa Paula
Notes to Required Supplementary Information
June 30, 2024
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1) BUDGETARY INFORMATION
Budgeted revenue and expenditure amounts shown represent the City’s originally adopted legal budget adjusted for unanticipated revenues and appropriations during the course of the fiscal year. Budget amounts, as adjusted, reported for the governmental funds of the City are adopted on a basis consistent with generally accepted accounting principles (GAAP).
All appropriations lapse at the end of the fiscal year to the extent that they have not been expended. Lease contracts and projects entered into by the City are subject to annual review by the City Council; hence, they legally are one-year contracts with an option for renewal for another fiscal year.
The City Council has the responsibility for adoption of the City’s Budget. Budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds. From the effective date of the budget, the amounts stated as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by motion during each fiscal year. The City Manager is authorized to transfer funds from one major expenditure category to another within the same department and fund. Any revisions that alter the total expenditures of any fund must be approved by City Council. The level at which expenditures may not legally exceed appropriations is therefore established at the department level. Budgeted amounts may be transferred between programs with City Manager approval.
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City of Santa Paula
Non-Major Governmental Funds
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Special Revenue Funds
Mobile Home Rent Review Fund - This fund is used to administer the Mobile Home Rent Review Program.
Local Transportation TDA Fund - This fund is to be used for local streets and roads.
CA Oil Museum Fund - Revenues from fundraising, membership and interest from endowment.
Used to cover operating costs of museum.
Hillsborough Open Space Assessment Fund - This fund is used to account for the Maintenance Assessment District for Tract #4486-1 (except parcels D & E) and Tract #4486-2.
Local Transportation TDA Article 3 Fund - This fund is set aside for bicycle and pedestrian facilities.
NPDES Storm Water Quality Fund - This fund is only for use in relation to storm water quality.
Beverage Container Recycling Fund - This fund is used to account for the recycling program state grants.
Cable Television Fund - This fund is used to account for cable television fees.
Stormwater Program Fund - This fund is used to account for storm water program activities.
GHAD-GEO Hazardous Abatement District Fund - This fund is used to account for the Geological Hazard Abatement District #5606.
State Gas Tax Special Revenue Fund - This fund accounts for the State Gas Tax funds that are restricted for street related projects.
State Grants Fund - This fund is used to account for state grant activities.
Federal Grants Fund - This fund is used to account for federal grant activities.
Capital Project Funds
Inclusionary Housing Ordinance Improvement - This fund is used to account for developers fees collected to be used for future Inclusionary Housing Ordinance Implementation Programs.
Traffic Impact Fees Fund - This fund is used to account for developers fees collected to be used for traffic related projects. This fund is legally restricted to capital acquisition or related debt service.
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City of Santa Paula
Non-Major Governmental Funds
-71-
Capital Project Funds (continued)
Air Quality Impact Fee - This fund is used to account for developers fees collected to be used for air quality management.
Park Bond Grant Fund - This fund is used to account for grant funds received to be used for parks.
Federal STP Grant - This fund is used to account for grant funds restricted for street purposes.
Facilities Capital Projects Fund - This fund is used to account for developers fees collected to be used for facility expansion projects.
Permanent Funds
Community Center Endowment Fund - This fund is used to account for principal trust amounts received and related investment earnings. Investment earnings may be used to support the Center.
Museum Endowment Fund - This fund is used to account for principal trust amounts received and related investment earnings. Investment earnings may be used to support the Museum.
Harding Park Trust Fund - This fund is used to account for principal trust amounts received and related investment earnings. Investment earnings may be used to support the Harding Park Trust Fund subject to the approval of the Harding Park Advisory Committee.
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144
City of Santa Paula
Combined Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
-72-
Special Capital Permanent
Revenue Projects Funds Total
ASSETS
Cash and investments 14,561,532 $ 7,019,199 $ 1,138,933 $ 22,719,664 $ Receivables
Accounts and interest 475,837 70,878 9,833 556,548
Loans receivable 329,500 - - 329,500
Prepaids 372 - - 372
Total Assets $ 7,090,077 15,367,241 $ $ 1,148,766 $ 23,606,084
LIABILITIES
Accounts payable and accrued
liabilities $ 368,846 $ 7,181 $ 26,701 $ 402,728
Due to other funds 222,556 4,961 - 227,517
Total Liabilities 591,402 12,142 26,701 630,245
FUND BALANCE (DEFICIT)
Nonspendable 372 - 889,643 890,015
Restricted 15,006,930 7,083,364 232,422 22,322,716
Unassigned (231,463) (5,429) (236,892) -
Total Fund Balances 14,775,839 7,077,935 1,122,065 22,975,839 Total Liabilties and Fund Balances $ 7,090,077 15,367,241 $ $ 1,148,766 $ 23,606,084 DRAFT
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City of Santa Paula
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2024
-73-
Local Hillsborough
Mobile Home Transportation CA Oil Open Space
Rent Review TDA Museum Assessment
ASSETS
Cash and investments $ - $ 1,769,973 $ 2,039,543 $ 33,930 Receivables
Accounts and interest 93 12,837 11,048 149
Loans receivable - - - -
Prepaids - - - -
Total Assets $ 93 $ 1,782,810 $ 2,050,591 $ 34,079
LIABILITIES
Accounts payable and accrued
liabilities $ - $ 4,472 $ 8 $ 575
Due to other funds 66,617 - 2 -
Total Liabilities 66,617 4,472 10 575
FUND BALANCE (DEFICIT)
Nonspendable - - - -
Restricted - 1,778,338 2,050,581 33,504
Unassigned (66,524) - - -
Total Fund Balances (66,524) 1,778,338 2,050,581 33,504 Total Liabilities and Fund Balances $ 93 $ 1,782,810 $ 2,050,591 $ 34,079 DRAFT
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146
(Continued)
-74-
Local NPDES Beverage GHAD-GEO
Transportation Storm Water Container Cable Stormwater Hazardous TDA Article 3 Quality Recycling Television Program Abatement Dist. $ 1,557,835 $ - $ 145,209 $ 200,097 $ 345,044 $ 698,183 9,254 - 519 13,873 112,681 6,725
- - - - - -
- - - - - -
$ 1,567,089 $ - $ 145,728 $ 213,970 $ 457,725 $ 704,908 $ 1,022 $ 9,002 $ - $ 4,918 $ 2,829 $ 10,067
- 155,937 - - - -
1,022 164,939 - 4,918 2,829 10,067
- - - - - -
1,566,067 - 145,728 209,052 454,896 694,841
- (164,939) - - - -
1,566,067 (164,939) 145,728 209,052 454,896 694,841
$ 1,567,089 $ - $ 145,728 $ 213,970 $ 457,725 $ 704,908 DRAFT
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147
City of Santa Paula
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2024 (Concluded)
-75-
(Formely major)
State Gas State Federal
Tax Grants Grants Total
ASSETS
Cash and investments $ 2,704,344 $ 819,858 $ 4,247,516 $ 14,561,532 Receivables
Accounts and interest 267,482 7,092 34,084 475,837
Loans receivable - 216,564 112,936 329,500
Prepaids - - 372 372
Total Assets $ 2,971,826 $ 1,043,514 $ 4,394,908 $ 15,367,241
LIABILITIES
Accounts payable and accrued
liabilities $ 158,135 $ 73,319 $ 104,499 $ 368,846
Due to other funds - - - 222,556
Total Liabilities 158,135 73,319 104,499 591,402
FUND BALANCE (DEFICIT)
Nonspendable - - 372 372
Restricted 2,813,691 970,195 4,290,037 15,006,930
Unassigned - - - (231,463)
Total Fund Balances 2,813,691 970,195 4,290,409 14,775,839 Total Liabilities and Fund Balances $ 2,971,826 $ 1,043,514 $ 4,394,908 $ 15,367,241 DRAFT
Subject To Change
148
City of Santa Paula
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2024
-76-
Inclusionary
Housing
Ordinance Traffic Air Quality Park
Improvement Impact Fees Impact Fee Bond Grant
ASSETS
Cash and investments 1,941,368 $ 1,009,639 $ 2,254 $ - $ Receivables:
Accounts and interest 15,923 7,543 16 -
Total Assets 1,957,291 $ 1,017,182 $ 2,270 $ - $
LIABILITIES
Accounts payable and accrued
liabilities - $ - $ - $ 468 $
Due to other funds - - - 2,295
Total Liabilities - - - 2,763
FUND BALANCE (DEFICIT)
Restricted 1,957,291 1,017,182 2,270 -
Unassigned - - - (2,763)
Total Fund Balances 1,957,291 1,017,182 2,270 (2,763)
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 1,957,291 $ 1,017,182 $ 2,270 $ - DRAFT
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(continued)
-77-
(Formely major)
Federal Facility
STP Grant Capital Projects Total
$ 4,065,938 - $ 7,019,199 $
47,396 - 70,878
$ 4,113,334 - $ 7,090,077 $
$ 6,713 - $ 7,181 $
- 2,666 4,961
6,713 2,666 12,142
4,106,621 - 7,083,364
- (2,666) (5,429)
4,106,621 (2,666) 7,077,935
$ 4,113,334 - $ 7,090,077 $
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City of Santa Paula
Combining Balance Sheet
Nonmajor Permanent Funds
June 30, 2024
-78-
Community
Center Museum Harding
Endowment Endowment Park Trust Total
ASSETS
Cash and investments 651,956 $ 231,233 $ 255,744 $ 1,138,933 $ Receivables
Accounts and interest 4,760 1,694 3,379 9,833
Total Assets 656,716 $ 232,927 $ 259,123 $ 1,148,766 $
LIABILITIES
Accounts payable and accrued
liabilities - $ - $ 26,701 $ 26,701 $
Total Liabilities - - 26,701 26,701
FUND BALANCE
Nonspendable 656,716 232,927 - 889,643
Restricted - - 232,422 232,422
Total Fund Balances 656,716 232,927 232,422 1,122,065
Total Liabilities and Fund Balances 656,716 $ 232,927 $ 259,123 $ 1,148,766 $ DRAFT
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City of Santa Paula
Combined Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the Year Ended June 30, 2024
-79-
Special Capital Permanent
Revenue Projects Funds Total
REVENUES
Taxes 30,910 $ 336,747 $ - $ 367,657 $
Intergovernmental 3,516,993 - - 3,516,993
Charges for services 2,526,040 - 186,536 2,712,576
Investment earnings 574,196 455,792 55,156 1,085,144
Other revenues 6,270 - 3,720 9,990
Total Revenues 6,654,409 792,539 245,412 7,692,360
EXPENDITURES
General government 182,859 114,828 - 297,687
Community services 134,109 1,000,701 159,324 1,294,134
Financial services 31,833 - - 31,833
Planning 259,364 - - 259,364
Police 70,572 - - 70,572
Public works 2,026,477 238,462 - 2,264,939
Total Expenditures 2,705,214 1,353,991 159,324 4,218,529 Excess (Deficiency) of Revenues
Over Expenditures 3,949,195 (561,452) 86,088 3,473,831
OTHER FINANCING SOURCES (USES)
Transfers in 440,806 - - 440,806
Transfer out (416,369) - - (416,369)
Total Other Financing
Sources (Uses) 24,437 - - 24,437
Net Change in Fund Balances 3,973,632 (561,452) 86,088 3,498,268 Fund Balances (Deficit), Beginning, as previously reported 5,728,696 3,767,701 1,035,977 10,532,374 Change within financial reporting entity (major to non-major) 5,073,511 3,871,686 8,945,197 - Fund Balances (Deficit), Beginning, as restated 10,802,207 7,639,387 1,035,977 19,477,571 Fund Balances, Ending $ 14,775,839 $ 7,077,935 $ 1,122,065 $ 22,975,839 DRAFT
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153
City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Special Revenue Funds
For the Year Ended June 30, 2024
-80-
Local Hillsborough
Mobile Home Transportation CA Oil Open Space
Rent Review TDA Museum Assessment
REVENUES
Taxes - $ $ - $ - $ 10,534
Intergovernmental - 1,063,430 - -
Charges for services 17,233 - 2,000,000 -
Investment earnings 207 78,476 63,312 1,503
Other revenues - - - -
Total Revenues 17,440 1,141,906 2,063,312 12,037
EXPENDITURES
General government - - - -
Community services - - - -
Financial services - - - -
Planning - - - -
Police - - - -
Public works - 81,976 - 6,286
Total Expenditures - 81,976 - 6,286
Excess (Deficiency) of Revenues
Over Expenditures 17,440 1,059,930 2,063,312 5,751
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfer out - (416,369) - -
Total Other Financing
Sources (Uses) - (416,369) - -
Net Change in Fund Balances 17,440 643,561 2,063,312 5,751 Fund Balances (Deficit), Beginning, as previously reported (83,964) 1,134,777 (12,731) 27,753 Change within financial reporting entity (major to non-major) - - - - Fund Balances (Deficit), Beginning, as restated (83,964) 1,134,777 (12,731) 27,753 Fund Balances (Deficit), Ending $ (66,524) $ 1,778,338 $ 2,050,581 $ 33,504 DRAFT
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154
(Continued)
-81-
Local NPDES Beverage GHAD-GEO
Transportation Storm Water Container Cable Stormwater Hazardous TDA Article 3 Quality Recycling Television Program Abatement Dist. $ - $ 20,376 $ - $ - $ - $ -
61,811 - 97,680 - - -
- - - 38,063 304,135 93,894
19,409 (1,161) 3,977 8,082 4,374 32,305
- - - - - -
81,220 19,215 101,657 46,145 308,509 126,199
- - - 33,006 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
1,267 117,244 9,204 - 67,441 37,831
1,267 117,244 9,204 33,006 67,441 37,831
79,953 (98,029) 92,453 13,139 241,068 88,368
- - - - - -
- - - - - -
- - - - - -
79,953 (98,029) 92,453 13,139 241,068 88,368
1,486,114 (66,910) 53,275 195,913 213,828 606,473
- - - - - -
1,486,114 (66,910) 53,275 195,913 213,828 606,473
$ 1,566,067 $ (164,939) $ 145,728 $ 209,052 $ 454,896 $ 694,841 DRAFT
Subject To Change
155
City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Special Revenue Funds
For the Year Ended June 30, 2024
-82-
State State Federal
Gas Tax Grant Grant Total
REVENUES
Taxes - $ $ - $ - $ 30,910
Intergovernmental 1,685,469 469,431 139,172 3,516,993
Charges for services 72,715 - - 2,526,040
Investment earnings 96,351 35,799 231,562 574,196
Other revenues - - 6,270 6,270
Total Revenues 1,854,535 505,230 377,004 6,654,409
EXPENDITURES
General government - - 149,853 182,859
Community services - - 134,109 134,109
Financial services 26,343 - 5,490 31,833
Planning - 240,500 18,864 259,364
Police - 4,979 65,593 70,572
Public works 887,681 31,350 786,197 2,026,477
Total Expenditures 914,024 276,829 1,160,106 2,705,214
Excess (Deficiency) of Revenues
Over Expenditures 940,511 228,401 (783,102) 3,949,195
OTHER FINANCING SOURCES (USES)
Transfers in 440,806 - - 440,806
Transfer out - - - (416,369)
Total Other Financing
Sources (Uses) 440,806 - - 24,437
Net Change in Fund Balances 1,381,317 228,401 (783,102) 3,973,632 Fund Balances (Deficit), Beginning, as previously reported 1,432,374 741,794 - 5,728,696 Change within financial reporting entity (major to non-major) - - 5,073,511 5,073,511 Fund Balances (Deficit), Beginning, as restated 1,432,374 741,794 5,073,511 10,802,207 Fund Balances (Deficit), Ending $ 2,813,691 $ 970,195 $ 4,290,409 $ 14,775,839 DRAFT
Subject To Change
156
City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Capital Project Funds
For the Year Ended June 30, 2024
-83-
Inclusionary
Housing Traffic Air Quality Park
Ordinance Impact Fees Impact Fee Bond Grant
REVENUES
Taxes - $ 18,902 $ - $ - $
Investment earnings 113,156 50,554 110 8
Total Revenues 113,156 69,456 110 8
EXPENDITURES
General government - 45,940 - -
Community services 933,167 - - -
Public works - - - -
Total Expenditures 933,167 45,940 - -
Net Change in Fund Balances (820,011) 23,516 110 8
Fund Balances (Deficit), Beginning, as previously reported 2,777,302 993,666 2,160 (2,771) Change within financial reporting entity (major to non-major) - - - - Fund Balances (Deficit), Beginning, as restated 2,777,302 993,666 2,160 (2,771) Fund Balances (Deficit), Ending $ 1,957,291 $ 1,017,182 $ 2,270 $ (2,763) DRAFT
Subject To Change
157
(continued)
-84-
(Formely major)
Federal Facility
STP Grant Capital Projects Total
$ 317,845 - $ 336,747 $
291,974 (10) 455,792
609,819 (10) 792,539
68,888 - 114,828
67,534 - 1,000,701
238,462 - 238,462
374,884 - 1,353,991
234,935 (10) (561,452)
(2,656) - 3,767,701
- 3,871,686 3,871,686
(2,656) 3,871,686 7,639,387
$ (2,666) $ 4,106,621 $ 7,077,935
DRAFT
Subject To Change
158
City of Santa Paula
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Permanent Funds
For the Year Ended June 30, 2024
-85-
Community
Center Museum Harding
Endowment Endowment Park Trust Total
REVENUES
Charges for services - $ $ 186,536 - $ $ 186,536
Investment earnings 31,804 11,289 12,063 55,156
Other revenues 3,720 - - 3,720
Total Revenues 35,524 11,289 198,599 245,412
EXPENDITURES
Community services - 159,324 - 159,324
Total Expenditures - 159,324 - 159,324
Net Change in Fund Balances 35,524 11,289 39,275 86,088 Fund Balances, Beginning 621,192 221,638 193,147 1,035,977 Fund Balances, Ending $ 656,716 $ 232,927 $ 232,422 $ 1,122,065 DRAFT
Subject To Change
159
To: Honorable Mayor and Members of the City Council
From: Donald Aguilar, Police Chief
Subject: SCHOOL RESOURCE OFFFICER CONTRACT WITH SANTA PAULA
UNIFIED SCHOOL DISTRICT
Prepared by: Police Chief Don Aguilar
Date: September 17, 2025
Agenda Item: 10.F
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends that the City Council:
1. Authorize the City Manager to execute the School Resource Officer (SRO) MOU with the Santa Paula Unified School District (SPUSD).
BACKGROUND:
The Santa Paula Unified School District (SPUSD) has reached out to the City of Santa Paula to facilitate a SRO agreement for an officer at Isbell Middle School and Santa Paula High School. In this partnership, the SPUSD is funding the services of the Resource Officers based on the days they are committed to the District.
For several years, the City of Santa Paula and the SPUSD have agreed for two police officers to act as SRO's on school campuses. In this capacity, the SRO's are generally responsible for law enforcement, safety, and discipline on school district properties including Santa Paula High School, Isbell Middle School, Renaissance High School and the six (6) elementary schools as needed. In past agreements, it has been established that providing Santa Paula Police Department SRO's have provided useful and practical services that has helped reduce the demands for regular law enforcement services within the City, and it has also decreased response times for calls on school campuses. It has also been noted that the presence of SRO's provides enhanced safety and a valuable resource to students and school staff.
In this capacity, SRO's work with school administrators in providing prevention programs on focused areas of need, establishing guidance on reducing bullying at schools, and implement emergency and crisis planning in the form of drills, tabletop exercises, and handling other law enforcement related matters. In their regular duties, SRO's meet with school administrators; make themselves visible on campuses; build relationships with school staff, students, parents and parent groups; conduct site visits for the various schools within the District; perform home visits as needed; and provide information to the District regarding threat assessment of 160
students.
ANALYSIS:
In order to move forward with the partnership, the Santa Paula Unified School District has produced an MOU (Exhibit A) with the Santa Paula Police Department for the 2025 school year. The MOU is good for one school year, including summer school.
The program will fund two SRO's. One SRO will be assigned to Isbell Middle School and one SRO will be assigned to Santa Paula High School during the regular school year. For summer school, one SRO will be assigned. This is part of an ongoing arrangement which has transpired with annual agreements over the course of the several years.
STRATEGIC PLAN:
This item supports the City Council's goal of creating an environment within the City in which our residents feel safe and which promotes the City as a location of choice for living, working, visiting, and recreating identified in Section E: Public Safety of the two-year Strategic Plan.
FISCAL IMPACTS:
The estimated revenue from the agreement with the school district is $ 251,224 for the two positions at 180 days, plus 25 summer school days. This amount may change depending on the officers assigned to the SRO duty.
OPTIONS:
As an alternative to Staff's recommendation, Council may:
1. Do not approve the agreement for School Resource Officers between the Santa Paula Police Department and the Santa Paula Unified School District.
2. Provide staff with further direction.
ATTACHMENTS:
SRO Contract with SPUSD 2025
161
1 AGREEMENT FOR SCHOOL RESOURCE OFFICER BETWEEN
THE CITY OF SANTA PAULA AND
THE SANTA PAULA UNIFIED SCHOOL DISTRICT
(2025-2026 Academic School Year)
This AGREEMENT FOR SCHOOL RESOURCES OFFICER (“Agreement”) is entered into this 17th day of September, 2025, by and between the CITY OF SANTA PAULA ("CITY"), a municipal corporation and general law city and the SANTA PAULA UNIFIED SCHOOL DISTRICT ("DISTRICT"), a public school district organized pursuant to provisions of the California Education Code. CITY and DISTRICT may be referred to in this Agreement individually as a “Party” or collectively as “Parties.” l. RECITALS. This Agreement is entered into with reference to the following facts and objectives:
A. The CITY and DISTRICT agree to collaborate by co-locating police officers to act as School Resources Officers (SROs) with responsibility for law enforcement, safety, and discipline on DISTRICT's properties, among other services.
B. CITY has been providing SRO services to DISTRICT since August 11, 2025, the start of the 2025-2026 Academic School Year.
C. CITY believes that providing SRO services helps reduce the overall demands for law enforcement within CITY's jurisdiction and also decreases response times for calls to DISTRICT's properties.
D. DISTRICT finds that the presence of SROs increases security and provides DISTRICT's students with a valuable resource.
E. Both Parties therefore believe it is in the public interest to enter into this Agreement to protect the public health, safety, and welfare and agree to the terms set forth herein.
2. CITY'S RESPONSIBILITIES.
During the period specified in Subsection F, below, CITY agrees to assign two (2) police officers as SROs for DISTRICT during the school year, and one (1) SRO during Summer School. The SROs will be primarily responsible for law enforcement activities on DISTRICT's property, but will remain CITY's employee and subject to the command structure of CITY's police department.
B. CITY will ensure that the SROs are properly equipped in accordance with CITY's police department regulations.
162
2 C. CITY will be responsible for administering (but not the costs of) the SROs’ compensation.
D. CITY agrees that the SROs assigned to DISTRICT will be able to perform the following additional functions:
i. Able to work with DISTRICT's students and personnel including, without limitation, DISTRICT's private security;
ii. Able to make presentations regarding law enforcement to various interested groups including, without limitation, students, faculty, parents, community business owners, and DISTRICT's administrators;
iii. Become familiar with DISTRICT's classroom teaching methods and management strategies;
iv. Participate in counseling “at risk" students and their parents in cooperation with DISTRICT's counselors;
Participate as an active member of the District's School Attendance Review Board, and Expulsion Hearings, as requested.
vi. Work with school administrators, counselors and teachers in the implementation of violence prevention programs, drug/tobacco abuse/use prevention programs, activities designed to reduce bullying at school, emergency and crisis planning and other educational and law enforcement related matters.
vii. Meet regularly with school administrators to plan regular activities and schedules.
viii. Be visible on campuses, building working relationships with school staff, students, parents, and parent groups.
ix. On an as needed basis, conduct site visits at various schools within the district.
x. Perform home visits as needed.
xi. Provide information to the District regarding threat assessment of students.
E. The CITY will make the SROs available during school hours ordinarily between 7:30 a.m. and 3:30 p.m. or 8:00 a.m. to 4:00 p.m. In addition, DISTRICT may request the SRO's presence on occasion during the evening in the event of evening programs.
163
3 F. During those times that DISTRICT does not have school in session (example:
Winter and Summer breaks), CITY may assign the SROs to perform other police work that may, or may not, be associated with DISTRICT activities.
G. The City or its police department may reassign SROs as necessary to ensure public safety or other circumstances deemed necessary, such as court appearances, staff shortage, emergency circumstances.
H. The services of the SROs will begin in August 2025 at the start of the 2025-2026 School Year, and be provided on days school is in session through September 2026 including during the Summer School session when one SRO will be assigned.
I. Unless specified otherwise in this Agreement, the CITY’s Chief of Police shall have the primary administrative responsibility under this Agreement for the CITY. The Chief of Police or his/her designee shall consult with the DISTRICT Superintendent, or his or her designee, on matters that pertain to this Agreement.
Any complaint or allegations of misconduct involving or against the Officer arising out of the performance of this Agreement shall be reported directly to the Chief of Police and shall be handled in accordance with the CITY’s internal policies, procedures, and practices.
3. DISTRICT'S RESPONSIBILITIES.
A. CITY COMPENSATION.
i. Regular School Year. DISTRICT will pay the fully burdened costs of the two (2) SROs for the regular School Year based on the days they are committed to the District. The billing will be based on the fully burdened cost of the employee to the City, divided by 246 work days (260 paid days, less 14 holidays) to calculate an average daily rate. The daily rate will then be multiplied by 180 school days, the days the officers will be present at the school.
Fully Burdened Cost / 246 days = Average Daily Rate
Average Daily Rate x 180 academic days = School District Annual amount Annual Amount / 12 months = Monthly Billed amount
The estimated Fiscal Year cost for two positions is approximately $251,224. The amount is subject to change based on the Officer filling the position. ii. Summer School. The District is responsible for the cost of one SRO for 25 days of Summer School. The amount is subject to change based on the Officer filling the position.
164
4 iii. CITY will invoice the DISTRICT by the 15th day of each month for the SROs’ services for the previous month. The District will pay the invoice within thirty days (30) of the receipt.
iv. In the event of any question or dispute on the amount, DISTRICT will notify the CITY within fifteen (15) days, and CITY will respond within fifteen (15) days of the receipt of the inquiry to the DISTRICT per the contact information in section 14, below.
B. DISTRICT will provide each SRO with an appropriate working space and supplies to perform the SRO's duties at Santa Paula High School and Isbell Middle School sites.
C. DISTRICT agrees to modify the weekly schedule of the SROs as needed to ensure that no overtime expenditures are associated with this position. DISTRICT will notify the SROs at least three (3) days in advance if any schedule modifications are needed for a special program or event. A City police department commander and the District must approve any overtime relating to the SRO’s duties that are within the scope of the SRO position.
4. PRIVACY RIGHTS. This Agreement anticipates that CITY may have access to records concerning minors whose records are protected from disclosure by various provisions of California law (including, without limitation, Welfare & Institutions Code § 827). Accordingly, CITY agrees that it will use its best efforts to secure all student records and prevent their disclosure to the extent provided by applicable law.
5. CONFIDENTIALITY. DISTRICT understands and agrees that CITY cannot share information gathered in furtherance of criminal investigations; crime reports; and other, similar matters. Applicable law requires that such information be kept confidential.
6. PUBLIC RECORDS ACT. The Parties acknowledge that they are public entities subject to the Public Records Act (Government Code §§ 7920-7931) and that this Agreement, and documents ancillary to this Agreement, must generally be disclosed upon request. However, the Parties agree that student records are specifically excluded from disclosure under Government Code §§ 7927.7, 7927.705, 7930.195, and 7930.2. Accordingly, the Parties agree that such records will not be released except as otherwise provided by law.
7. TERM. The term of this Agreement will be from the start of the Regular School Year through the end of Summer School according to the DISTRICT’s 2025-2026 School Year Calendar, unless terminated earlier pursuant to Section 8 of this Agreement.
8. TERMINATION. Except as otherwise provided, the Parties may terminate this Agreement at any time with or without cause. DISTRICT will pay CITY on a pro-rated basis for all services rendered and all necessarily incurred costs performed in good faith in accordance with the terms of this Agreement that were not previously reimbursed up to the date of termination. CITY will provide all necessary documentation of services rendered to the District under this Agreement 165
5 including but not limited to: time sheets for SROs, logs or service records for educational or tobacco enforcement activities, and any documents needed as verification of service.
9. OWNERSHIP OF DOCUMENTS. All documents, data, studies, and reports prepared by DISTRICT relating to this Agreement are DISTRICT’S property. DISTRICT will provide copies of said documents and materials to the CITY as requested, but will retain all original materials.
10. INDEMNIFICATION.
To the fullest extent permitted by law, DISTRICT hereby agrees to and shall indemnify, defend, and hold CITY, its elective and appointive boards, officers, agents, volunteers, and employees harmless for any and all claims, actions, losses, liability or damages or claims for damages for personal injury, including death, as well as from claims from breach of confidentiality or property damage, which may arise from DISTRICT’S negligent or intentional acts, errors or omissions under this Agreement, except where such indemnification is prohibited by law.
B. To the fullest extent permitted by law, CITY hereby agrees to and shall indemnify, defend, and hold DISTRICT, its elective and appointive boards, officers, agents, volunteers, and employees harmless for any and all claims, actions, losses, liability or damages or claims for damages for personal injury, including death, as well as from claims from breach of confidentiality or property damage, which may arise from CITY’S negligent or intentional acts, errors or omissions under this Agreement, except where such indemnification is prohibited by law.
C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement.
11. INSURANCE. The Parties shall each maintain adequate insurance coverage for the activities contemplated herein for the duration of this Agreement. Each Party may utilize a program of self-insurance to meet the insurance requirements of this Agreement.
12. ASSIGNABILITY. DISTRICT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void.
13. AUDIT OF RECORDS. Both the CITY and DISTRICT will maintain full and accurate records with respect to all services and matters covered under this Agreement. Both will have access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities.
Both the CITY and DISTRICT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement.
14. NOTICES. All communications to either Party by the other Party will be deemed made when received by such party at its respective name and address as follows:
If to DISTRICT: If to CITY:
Superintendent City Manager
166
6 Santa Paula Unified School District City of Santa Paula 201 South Steckel Drive P.O. Box 569
Santa Paula, CA 93060 Santa Paula, CA 93061-0569
Any such written communications by mail will be conclusively deemed to have been received by the addressee two days after deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
15. INTERPRETATION; VENUE. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Ventura County.
16. ENTIRE AGREEMENT. This Agreement constitutes the entire understanding between the Parties with respect to the matters set forth above and supersedes all prior or contemporaneous understanding or agreements between the Parties with respect to the subject matter, whether oral or written.
17. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.
18. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect.
19. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's city manager, or designee, may execute any such amendment on behalf of CITY.
20. RELATIONSHIP OF PARTIES. Nothing contained in this Agreement shall be construed as creating a joint venture, partnership, or any other similar arrangement between the Parties . No Party to this Agreement shall be deemed to be a representative, an agent, or an employee of the other Party.
21. NO THIRD-PARTY BENEFICIARIES. This Agreement and the performance of the Parties’ obligations hereunder are for the sole and exclusive benefit of the PARTIES. No person or entity who or which is not a signatory to this Agreement shall be deemed to be benefited or intended to be benefited by any provision hereof, and no such person or entity shall acquire any rights or causes of action against either PARTY hereunder as a result of a Party’s performance or non-performance of its responsibilities under this Agreement. 167
7 22. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature.
23. COUNTERPARTS. This Agreement may be executed in counterparts, each of which so executed WILL irrespective of the date of its execution of delivery be deemed an original, and all such counterparts together constitute one and the same instrument.
24. CITY COUNCIL APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the Santa Paula City Council. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity.
25. SCHOOL DISTRICT GOVERNING BOARD APPROVAL. This Agreement is subject to and conditioned upon approval and ratification by the Governing Board of Trustees of the Santa Paula Unified School District. This Agreement is not binding upon the DISTRICT until executed by the appropriate DISTRICT official, acting in the authorized capacity.
26. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement.
27. STATEMENT OF EXPERIENCE. By executing this Agreement, DISTRICT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. DISTRICT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that DISTRICT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on Next Page]
168
8 SIGNATURE PAGE TO
AGREEMENT FOR SCHOOL RESOURCE OFFICER BETWEEN
THE CITY OF SANTA PAULA AND
THE SANTA PAULA UNIFIED SCHOOL DISTRICT
IN WITNESS WHEREOF the Parties hereto have executed this contract the day and year first hereinabove written.
CITY OF SANTA PAULA SANTA PAULA UNIFIED SCHOOL DISTRICT _________________________ ________________________________________ Dan Singer, City Manager SUPERINTENDENT
ATTEST:
__________________________
Julie Latshaw, City Clerk
APPROVED AS TO FORM:
________________________
Monica Castillo, City Attorney
169
To: Honorable Mayor and Members of the City Council
From: James Mason, Community & Economic Development Director Subject: CITY LEASE AGREEMENT WITH THE MENDOCINO RAILWAY FOR USE OF 200 NORTH 10TH STREET (TRAIN DEPOT) FOR OFFICE
PURPOSES
Date: September 17, 2025
Agenda Item: 10.G
CITY OF SANTA PAULA
MEMORANDUM
RECOMMENDATION:
Staff recommends that the City Council:
1. Approve a five-year lease agreement with option to extend an additional five-years between the City and the Mendocino Railway for 1,665 square feet of commercial property at 200 North 10th Street (the Train Depot); and
3. Authorize the City Manager, or designee, to execute the agreement in a form approved by the City Attorney.
BACKGROUND:
The City is seeking to enter into a lease agreement with the Mendocino Railway for use of the Railroad Depot at 200 North 10th Street. Under this arrangement, Mendocino intends to lease a portion of the Train Depot comprised of the east office space, lobby and upstairs office space (1,665 square feet). The leased area will not include: a) the grounds and property located outside of the space previously described, b) the community meeting room located on the west side of the property, and c) the foyer space in the middle of the property currently occupied by an existing tenant (the existing lease of the foyer space expires November 2025 and if the tenant does not renew Mendocino will have first right of refusal on lease of the foyer space).
ANALYSIS:
The Train Deport has previously been leased to the Santa Paula Arts Society (since 2001) and the Chamber of Commerce (since 2015) for an amount of one dollar ($1.00) per year, per tenant. At the City's request, the Chamber has vacated the space and relocated to the Odd Fellows building at 866 East Main Street. With the upcoming expiration of the Santa Paula Arts Society lease, staff will begin discussions with their organizations on their future intentions.
In accordance with the proposed lease, the Mendocino Railway must obtain prior approval from the City's Parks and Recreation Department if it requests use of the Train Depot's 170
community room before scheduling any event. City will approve use of the community room, if it has not been reserved. The Mendocino Railway will also be responsible for cleaning the community room after any event and replacing any used supplies.
The proposed monthly rent for the space will be Two-Thousand Five Hundred and FiftyOne Dollars ($2,551) which will increase every two years by the lesser of three percent (3%) above the previous year’s rent or the percentage increase in the U.S.
Consumer Price Index for All Urban Consumers (CPI-U). The term of the lease will be five (5) years commencing on the 1
st day of October 2025, subject to the terms and conditions of this Lease (“Term”). The lease may be extended for an additional five (5) years, through June 30, 2035,upon mutual agreement.
The lease provides that Mendocino may or will do the following:
With the exception of approved signage, will not erect any exterior antennas or roof equipment without prior written consent from the city. Will be responsible for keeping the premises’ exterior (doorways, rear entrance, porch, steps, loading area) free and clear of trash, garbage, boxes, cleaning equipment and supplies, and other personal property.
May use the kitchenette area when the room is not in use. Will need to provide maintenance for the restrooms in the depot and pay all utilities. Will clean the restrooms in rail road plaza park during operating hours; and they will remain available for the use of the general public, not for their sole use. Will provide the city access to Wi-Fi and electricity. Will provide the city access to install and maintain exterior decorative lights and, in addition, access to decorate the depot every year at the holidays (Nov-early Jan) .
STRATEGIC PLAN:
None
FISCAL IMPACTS:
The lease agreement will result in annual lease payments of $30,612 and will increase every two years by the lesser of either three percent (3%) above the previous year’s rent or the percentage increase in the U.S. Consumer Price Index for All Urban Consumers (CPI-U). This revenue has been included in the adopted FY 25/26 and FY 26/27 Budget.
The payments will provide revenue to the General Fund and help to offset costs of maintenance and improvements for the Train Depot.
OPTIONS:
1. Do not approve the lease.
2. Provide alternative direction to staff regarding tenant use and lease terms.
ATTACHMENTS:
A - Train Depot Lease w Mendocino 091025
171
65283.00005\44123351.4
PARCEL NO.: 103-0-076-015
PROJECT: Lease of Property at 200 N. 10th Street, Santa Paula City AGREEMENT NO.:____________________________
LEASE AGREEMENT BETWEEN THE CITY OF SANTA PAULA
AND MENDOCINO RAILWAY DBA THE SUNBURST TRAIN
This lease (“Lease”) is entered into on October 1, 2025 (“Effective Date”) by and between City of Santa Paula, a California municipal corporation (“LANDLORD” or “CITY”), and Mendocino Railway, a California corporation (“LESSEE”).
RECITALS. This Lease is made with reference to the following facts and objectives:
A. The CITY owns the real property located at 200 North l0th Street, Santa Paula, CA 93060 (the "Property"), a depiction of which is attached to this Lease as Exhibit “A”. The Property is described by Assessor Parcel Number: 103-0-076-015.
B. The Property is improved with a train depot (“Train Depot”). The Property is also located within the Open Space Parks and Recreation Zone.
C. The LESSEE desires to lease a portion of the Train Depot comprised of the east office space, lobby and upstairs office space (1,665 square feet).
D. The CITY and LESSEE now desire to enter this Lease according to the terms set forth herein.
1. LEASE; DESCRIPTION OF PROPERTY; RIGHT OF FIRST REFUSAL.
LANDLORD leases to LESSEE a portion of the Train Depot (“Leased Area”) on the terms and conditions of this Lease. The Leased Area is approximately 1,665 square feet and is comprised of the east office space, lobby, and upstairs office space. The Leased Area is depicted on the attached Exhibit “B”, which is incorporated by this reference. The Leased Area shall not include:
A. The grounds of the Property;
B. The community meeting room located on the west side of the Train Depot, and C. The foyer space in the middle of the Train Depot that is currently leased by the Santa Paula Arts Society. Should the Santa Paula Arts Society not renew the lease, which expires November 2025, LESSEE will have the right of first refusal to lease the space from LANDLORD.
2. RENT. LESSEE shall pay LANDLORD rent in the amount of Two Thousand Five Hundred and Fifty-One Dollars ($2,551) per month in advance on or before the 1st day of each month, commencing October 1, 2025 (“Rent”). Rent shall be paid to LANDLORD at the address specified in this Lease for delivery of notices on LANDLORD, or at any other place designated by LANDLORD by written notice to LESSEE.
172
65283.00005\44123351.4
3. BIANNUAL ADJUSTMENT TO RENT. The Rent will increase every two years, the second year referred to hereafter as the “Adjustment Year”, by the lesser of (1) three percent (3%) above the previous years’ rent or (2) the percentage increase in the U.S. Consumer Price Index for All Urban Consumers (CPI-U), West Region, as published by Bureau of Labor Statistics in June of the Adjustment Year. The first increase occurs on October 1, 2027. In no event shall the annual rent decrease. LANDLORD shall provide LESSEE with written notice of the adjusted rent, including CPI calcluations, at least ninety (90) days prior to the effective date of the adjusted rent.
4. TERM.
A. Term. This Lease is for a term of five (5) years commencing on the 1 st day of October,
2025, subject to the terms and conditions of this Lease (“Term”).
B. Extension Option. LESSEE, if in compliance with this Lease, may extend the Lease for an additional five (5) years, through September 30, 2035, by delivering written notice via certified mail to LANDLORD by March 1, 2030.
C. Holdover. Holding over by LESSEE at the expiration of this Lease, or any extension thereof, with the consent of LANDLORD, shall be treated as month-to-month tenancy, with rent to be paid at the same monthly rate that was in effect during the month before the expiration of the Lease or any extension thereof, subject to all Lease terms and terminable by either party with thirty (30) days’ written notice.
D. Late Charges: If rent is more than ten (10) days late, or a check is returned for NonSufficient Funds (“NSF”), LESSEE shall pay a late charge of $125.00 and a $25 NSF fee (only if LANDLORD is charged NSF fee by its bank), plus interest at 10% per annum on the past due amount(s) which LESSEE shall promptly pay to LANDLORD on demand. Acceptance of a payment more than ten (10) days late, or acceptance of any late charge, NSF fee, or interest, does not constitute a waiver of any amount due under this Lease.
5. USE OF PROPERTY. LESSEE shall use the Leased Area exclusively for purposes of an office, visitor center and related incidental activities, and with LANDLORD’S approval per Section 19, for subleases for office, visitor center, and community services uses.
LANDLORD represents that the Premises are legally adequate for such uses as of the Effective Date. LESSEE shall comply with all City, County, State and Federal laws and LANDLORD shall ensure its activities in Leased Area do not cause LESSEE to violate such laws.
6. OTHER LESSEE RIGHTS AND OBLIGATIONS.
A. LESSEE shall not permit activities in the Leased Area that unreasonably interfere with LANDLORD’s or neighbors’ rights to use their property, nor allow an unlawful use in the Leased Area.
B. LESSEE shall not operate radios, televisions or other sound devices at disruptive 173
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volumes, cause nuisances, or commit waste.
C. LESSEE shall not erect any exterior antennas or roof equipment without LANDLORD’s prior written consent, which shall not be unreasonably withheld.
D. LESSEE shall keep the Train Depot’s exterior (e.g. doorways, rear entrance, porch, steps, loading area) free and the Property clear of trash, garbage, boxes, cleaning equipment and supplies, and other personal property.
E. Plumbing fixtures shall be used only for intended purposes.
F. The LESSEE may use the kitchenette area when not in use.
G. LESSEE shall provide maintenance for the restrooms in the Train Depot and pay all utilities. Restrooms internal to the Train Depot are for administrative and office staff use only, not for public or train guests use.
H. LESSEE shall clean the restrooms in Rail Road Plaza Park during operating hours.
Restrooms must remain available for the use of the general public, and are not for LESSEE’s sole use.
I. LESSEE shall provide LANDLORD access to Wi-Fi and electricity.
J. LESSEE shall provide LANDLORD access to install and maintain exterior decorative lights, and, in addition, access to decorate the Train Depot every year at the holidays (November-early January).
K. The LESSEE must obtain prior approval from the City's Parks and Recreation Department if it requests use of the Train Depot’s community room before scheduling any event. City will approve use of the community room, if it is not scheduled to be rented out on that day. LESSEE will clean the community room after any event and replace any used supplies.
7. CONDITION OF LEASED AREA. LESSEE accepts the Leased Area in an “as is” condition on the Effective Date, provided LANDLORD warrants that, to its knowledge, the Property, Train Depot, and Leased Area (together, “Premises”) are free of hazardous materials, structural defects, and code violations as of the Effective Date. LESSEE’s maintenance obligations are limited to those specified in Sections 6, and LANDLORD shall maintain the Train Depot’s structural integrity, roof, and shared systems (e.g., water, sewer) to prevent adverse impacts on the Leased Area. LESSEE and LANDLORD shall jointly ensure the Premises complies with the Americans with Disabilities Act (ADA) and other building codes, with costs shared equitably based on the benefit to each party’s use of the Premises. Title to approved improvements vests with LANDLORD upon termination and must be left in place upon termination of this Lease.
9. UTILITIES.
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A. LESSEE is responsible directly to the serving entities for all utilities required for its use of the Leased Area. "Utilities" means electricity, gas, telephone services, trash, water, and cable television.
B. LESSEE agrees to order, obtain, and pay for all utilities and service and installation charges in connection with the development and operation of the Leased Area.
10. TRASH AND GARBAGE. LESSEE shall pay for refuse disposal from its operations, ensuring no sewer contamination. LANDLORD shall provide adequate refuse storage areas for 200 North 10th Street at no cost to LESSEE.
ll. ALTERATIONS, MECHANICS' LIENS. Except as provided by this Lease, LESSEE will not make, or cause to be made, any alterations to the Premises, or any part thereof, without CITY's prior written consent. LESSEE will keep the Premises free from any liens arising out of any work performed, material furnished, or obligations incurred by LESSEE.
12. SIGNS. LESSEE may install professional signage compatible with the Train Depot’s historic character, subject to the approval of LANDLORD, which shall not be unreasonably withheld. All temporary and other signs, for example on the windows and doors, are subject to the approval of LANDLORD, which shall not be unreasonably withheld. Political advertising shall not be affixed to the building by either party.
13. MAINTENANCE QUALITY. CITY's designees may, at any reasonable time and without notice, enter the Premises to determine if satisfactory maintenance is being performed. If the quality of maintenance is unreasonable, CITY will provide written notice to LESSEE which includes the specific nature of the complaint. Should LESSEE fail to improve and sustain quality maintenance within thirty (30) days of CITY's notice, CITY may enter upon the Premises and perform such maintenance.
LESSEE will promptly reimburse CITY for the cost of maintenance, plus ten percent (10%) for CITY' s administrative overhead.
14. INSURANCE. LESSEE must procure and maintain insurance of the type, for the period, with the coverages and limits, and in accordance with the terms, conditions, and requirements that follow:
A. LESSEE will provide Commercial General Liability, Broad Form General Liability and Business Automobile Liability insurance that meet or exceed the requirement of ISO Forms GL0002, GL0404 and CAOOOl, Code 1, respectively, in the most current State of California approved forms, in connection with LESSEE's performance in the amount of not less than $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage for each policy coverage.
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B. Commercial General Liability, Broad Form General Liability and Business Automobile Liability policies required in this Lease will be endorsed to name CITY, its officials, volunteers, and employees as "additional insureds" under said insurance coverage, to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto, and to state that the policy(ies) will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY.
C. LESSEE will provide Fire Insurance coverage running to benefit the CITY to the full value of all buildings, equipment, materials and supplies which are used or stored for use by the LESSEE.
D. LESSEE will furnish to CITY a certificate of insurance, in the standard form required by CITY, duly authenticated, evidencing maintenance of the insurance required under this Lease and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII."
15. POSSESSORY INTEREST TAXES. LESSEE is informed by CITY pursuant to Revenue & Taxation Code § l07.6 that its property interest in the Property may be subject to property taxation if created and that LESSEE may be subject to the payment of property taxes levied on its interest. LESSEE may not deduct such amount from payments to CITY.
16. QUIET ENJOYMENT. LANDLORD agrees that LESSEE, upon compliance with this Lease, shall lawfully and quietly hold, occupy, and enjoy the Leased Area during the term of this Lease.
17. ENTRY BY LANDLORD. LANDLORD may enter the Premises during normal business hours, upon twenty-four (24) hours’ notice, as provided for in this Lease; and after normal business hours when an emergency exists so long as notice is provided via phone call to LESSEE at the number identified below in Section 40, LANDLORD will respect LESSEE’s privacy expectations.
18. LOCKS AND KEYS. LESSEE may not change or add any locks to the Premises without LANDLORD’s prior written consent and without providing LANDLORD with a key to the changed or added lock.
19. ASSIGNMENT AND SUBLETTING. This Lease may not be assigned, transferred, or sublet by LESSEE, court order, or through any other means. Any such purported transfer will be null and void.
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20. DEFAULT BY LESSEE. LANDLORD and LESSEE agree that every covenant and provision of this Lease is material and reasonable. Any breach of a condition, covenant or provision of this Lease will constitute a material breach of this lease. LANDLORD may issue a forty-five (45) day written notice to cure. If uncured, or incurable, LANDLORD may terminate the Lease. The parties shall meet within ten (10) days of notice to resolve disputes informally before termination. LESSEE cannot extend the Lease if in default.
21. WAIVER. The waiver by LANDLORD of any breach by LESSEE of any of the conditions, covenants and provisions of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach by LESSEE of either the same or of another provision of this lease. LANDLORD’s acceptance of rent following a breach of the Lease by LESSEE, with or without LANDLORD’s knowledge of the breach, will not be deemed to be a waiver of LANDLORD’s right to enforce any provision of this lease.
22. TENANCY STATEMENT (ESTOPPEL CERTIFICATE) LESSEE shall execute and deliver a statement to LANDLORD or LANDLORD’s designee within 10 days after receipt of a request, acknowledging that this Lease is unmodified and in full force, or in full force as modified, and state the modifications. Failure to comply with this requirement shall:
A) be deemed LESSEE’s acknowledgement that the Tenancy Statement is true and correct, and may be relied upon by a prospective lender or purchaser, and B) may be treated by LANDLORD as a material breach.
23. MEDIATION. LANDLORD and LESSEE agree to participate in a mediation proceeding of any dispute or claim arising out of this Lease prior to resorting to arbitration or court action, (other than an action brought by LANDLORD against LESSEE for unlawful detainer). Mediation fees shall be divided equally between the parties. If a party initiates a court action (other than unlawful detainer) without first attempting to resolve the matter through mediation, or refuses to participate in mediation after a request has been made, then that party shall not be entitled to attorney fees even if the decision in that court action favors that party.
24. BINDING ON HEIRS AND SUCCESSORS. This Lease shall be binding on and inure to the benefit of the heirs, executors, administrators, successors and assignees of LANDLORD and LESSEE; provided, however, that nothing in this section shall be construed as a consent by LANDLORD to any attempted assignment of this Lease or any interest therein by LESSEE.
25. Intentionally Omitted.
26. TERMINATION. This Lease may be terminated as follows:
A. At the expiration of the term;
B. Upon mutual written agreement between the parties; or 177
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C. Should LESSEE materially breach this Lease and fail to cure such breach within forty-five (45) days of being notified in writing by LANDLORD regarding such breach to LANDLORD’S reasonable satisfaction.
27. CONDITION OF PROPERTY UPON TERMINATION. Upon termination of this Lease for any reason, LESSEE will vacate the Leased Area and deliver it to LANDLORD in good order and condition, damage by the elements, earthquake, and ordinary wear and tear excepted.
28. SALE OR TRANSFER. Should LANDLORD, at any time during the term of this Lease, sell, lease, transfer, or otherwise convey all or any part of the Property to any transferee other than LESSEE, then such transfer will be under and subject to this Lease and all of LESSEE’s rights hereunder.
29. NO PUBLIC PROJECT. All rights given to LESSEE pursuant to this Lease are for LESSEE’s use of the Leased Area. Any trespass, use, or other utilization of private property by LESSEE is done at its own risk. This Lease is not intended, nor should it be construed, to constitute a public project.
30. FORCE MAJEURE. Should performance of this Lease be prevented due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ control, then it will immediately terminate without obligation of either party to the other.
31. NO FIXTURES. Improvements and facilities that currently exist, or may be constructed during the term of this Lease, will not constitute fixtures attached to the Property.
Any such facilities may be removed by LESSEE upon termination of the Lease.
32. ALTERATIONS, MECHANICS’ LIENS. Except as provided by this Lease, LESSEE will not make, or cause to be made, any alterations to the Premises, or any part thereof, without LANDLORD’s prior written consent. LESSEE will keep the Property free from any liens arising out of any work performed, material furnished, or obligations incurred by LESSEE.
33. ASSIGNMENT AND SUBLETTING. This Lease may not be assigned, transferred, or sublet by LESSEE, court order, or through any other means. Any such purported transfer will be null and void.
34. INDEMNIFICATION.
A. LESSEE indemnifies and holds LANDLORD harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of this Lease except for LANDLORD’s sole active negligence, willful misconduct, or failure to maintain the Premises. Should LANDLORD be named in any suit, or should any claim be against it, by suit or otherwise, whether the same be groundless or not, arising out of this Lease, LESSEE will defend LANDLORD with mutually agreed counsel.
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B. For purposes of this section “LANDLORD” includes officers, officials, employees, and agents.
C. LESSEE expressly agrees that this hold harmless and indemnification provision is intended to be as broad and inclusive as is permitted by the law of the State of California and that if any portion is held invalid, it is agreed that the balance will, notwithstanding, continue in full legal force and effect.
D. It is expressly understood and agreed that the foregoing provisions will survive termination of this Lease.
E. The requirements as to the types and limits of insurance coverage to be maintained by LESSEE as required by Section 35 below, and any approval of such insurance by LANDLORD, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by LESSEE pursuant to this Lease, including but not limited to the provisions concerning indemnification.
35. INSURANCE. LESSEE must procure and maintain insurance of the type, for the period, with the coverages and limits, and in accordance with the terms, conditions, and requirements that follow:
A. LESSEE will provide Commercial General Liability, Broad Form General Liability and Business Automobile Liability insurance that meet or exceed the requirement of ISO Forms GL0002, GL0404 and CA0001, Code 1, respectively, in the most current State of California approved forms, in connection with LESSEE’s performance in the amount of not less than $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage for each policy coverage.
B. Commercial General Liability, Broad Form General Liability and Business Automobile Liability policies required in this Lease will be endorsed to name LANDLORD, its officials, volunteers, and employees as “additional insureds” under said insurance coverage, to state that such insurance will be deemed “primary” such that any other insurance that may be carried by LANDLORD will be excess thereto, and to state that the policy(ies) will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to LANDLORD.
C. LESSEE will furnish to LANDLORD a certificate of insurance, in the standard form required by LANDLORD, duly authenticated, evidencing maintenance of the insurance required under this Lease and such other evidence of insurance or copies of policies as may be reasonably required by LANDLORD from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of “A: VII” or through City self-insurance, verified as equivalent. LANDLORD shall provide at least reciprocal levels and types of insurance for 200 North 10th Street, Santa Paula. 179
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36. COMPLIANCE WITH LAW. LESSEE will, at its sole cost and expense, comply with all of the requirements of all federal, state, and local authorities now in force, or which may hereafter be in force, pertaining to the Premises and will faithfully observe in the use of the Premises all applicable laws. The judgment of any court of competent jurisdiction that LESSEE has violated any such ordinance or statute in the use of the Property will be conclusive of that fact as between LANDLORD and LESSEE.
37. INSPECTIONS. LANDLORD has the right at all reasonable times, and as often as it deems necessary, to inspect the Premises with twenty-four (24) hours’ notice, except in emergencies per Section 17.
38. WAIVER OF BREACH. Any express or implied waiver of a breach of any term of this Lease will not constitute a waiver of any further breach of the same or other term of this Lease.
39. INSOLVENCY; RECEIVER. Either the appointment of a receiver to take possession of all or substantially all of the assets of LESSEE, or a general assignment by LESSEE for the benefit of creditors, or any action taken or offered by LESSEE under any insolvency or bankruptcy action, will constitute a breach of this Lease by LESSEE, and in such event this Lease will automatically cease and terminate.
40. NOTICES. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Lease or by law to be served on or given to either party to this Lease by the other party will be in writing and will be deemed served when personally delivered to the party to whom they are directed, or in lieu of the personal service, upon deposit in the United States Mail, certified or registered mail, return receipt requested, postage prepaid, addressed to:
LANDLORD at: City of Santa Paula
Attn: City Manager
970 Ventura Street
P. O. Box 569
Santa Paula, CA 93060
Telephone: 805-933-4201
LESSEE at: Mendocino Railway
Attn: President
100 West Laurel Street
Fort Bragg, CA 95437
Telephone: 707-964-6371
Either party may change its address or other information for the purpose of this Section by giving written notice of the change to the other party.
41. GOVERNING LAW. This Lease has been made in and will be construed in accordance with the laws of the State of California and exclusive venue for any action involving this Lease will be in Ventura County.
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