Stanton City Council
March 8, 2022

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PROPRIETARY FUNDS

ATTACHMENT A

CITY OF STANTON

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
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Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Fund Funds
ASSETS
Current Assets:

Cash and Investments 5,326,718 $ $ 1,517,788
Restricted Cash and Investments Held in Pension Trust - 4,696,361 Receivables:

Accounts Receivable 5,990 5,788
Interest 3,944 477
Taxes 11,818 -
Prepaids - 2,250
Due From Other Governments - 297,926
Total Current Assets 5,348,470 6,520,590
Noncurrent Assets:

Capital Assets:

Being Depreciated, Net 4,970,607 278,868
Total Noncurrent Assets 4,970,607 278,868
Total Assets 6,799,458 10,319,077

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount From Pension Plans 4,503 1,433,511
Total Deferred Outflows of Resources 4,503 1,433,511

LIABILITIES
Current Liabilities:

Accounts Payable $ 133,376 $ 36,571
Unearned Revenue - 561
Claims and Judgments Payable - 64,550
Compensated Absences Payable 975 134,065
Total Current Liabilities 134,351 235,747
Noncurrent Liabilities:

Claims and Judgments Payable - 138,664
Compensated Absences Payable 1,729 148,188
Net Pension Liability 22,918 6,631,148
Total Noncurrent Liabilities 24,647 6,918,000
Total Liabilities 158,998 7,153,747

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts From Pension Plans 618 740,519
Total Deferred Inflows of Resources 618 740,519

NET POSITION
Investment in Capital Assets 4,970,607 278,868
Unrestricted 5,193,357 59,835
Total Net Position $ 10,163,964 $ 338,703

ATTACHMENT A

CITY OF STANTON

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
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Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Fund Funds

OPERATING REVENUES
Charges for Services 2,235,352 $ 1,926,432 $
Total Operating Revenue 2,235,352 1,926,432
OPERATING EXPENSES:

Equipment Maintenance and Operation 14,234 42,620
Depreciation 142,886 81,567
Administrative and Personnel Services - 2,339,139
Provision for Estimated Claims - 195,434
Insurance Premiums and Claims - 284,125
Contractual Service 1,374,327 25,042
Total Operating Expenses 1,531,447 2,967,927
OPERATING INCOME (LOSS) 703,905 (1,041,495)

NONOPERATING REVENUES
Property Taxes 165,692 -
Interest Income 12,343 867,599
Gain on Sale of Capital Assets - 7,386
Total Nonoperating Revenues 178,035 874,985

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 881,940 (166,510)

TRANSFERS
Transfers Out (81,616) -

CAPITAL CONTRIBUTIONS
Capital Contributions from Governmental Activities - 360,436 CHANGES IN NET POSITION 800,324 193,926
Net Position - Beginning of Year 9,363,640 144,777
NET POSITION - END OF YEAR $ 10,163,964 $ 338,703

ATTACHMENT A

CITY OF STANTON

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
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Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Fund Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received From Customers $ 1,883,673 2,229,362 $
Cash Paid to Other Suppliers of Goods or Services (1,399,384) (383,973) Cash Paid to Employees for Salaries, Wages, and Benefits (47,037) (1,393,174) Net Cash Provided by Operating Activities 106,526 782,941

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Paid to Other Funds - (81,616)
Cash Received From Property Taxes 166,625 -
Net Cash Provided by Noncapital Financing Activities 85,009 -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets - (148,814)
Proceeds From Sale of Capital Assets 7,386 -
Net Cash Provided by Capital and Related Financing Activities (148,814) 7,386

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Income Received 870,938 20,826
Net Cash Provided (Used) by Investing Activities 20,826 870,938 NET INCREASE IN CASH AND CASH EQUIVALENTS 984,850 739,962 Cash and Cash Equivalents - Beginning of Year 4,586,756 5,229,299 CASH AND CASH EQUIVALENTS - END OF YEAR $ 6,214,149 5,326,718 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss) $ (1,041,495) 703,905 $
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided by Operating Activities:

Depreciation Expense 81,567 142,886
Changes in Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable (5,990) (2,513) (Increase) Decrease in Prepaid Expenses - 1,730
(Increase) Decrease in Due From Other Governments - (40,246) (Increase) Decrease in Deferred Outflows of Resources From Pension Plans 35,760 3,597 Increase (Decrease) in Accounts Payable 79,118 23,915
Increase (Decrease) in Accrued Liabilities (3,060) (367) Increase (Decrease) in Claims and Judgments Payable - 561 Increase (Decrease) in Compensated Absences Payable (310) 136,663 Increase (Decrease) in Due to Other Funds - 20,585
Increase (Decrease) in net Pension Liability (155,991) 760,459 Increase (Decrease) in Deferred Inflows of Resources from Pension Plans (13,377) 162,070 Net Cash Provided by Operating Activities $ 782,941 $ 106,526

NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Net Transfer of Capital Assets from Governmental Activities to Fleet Maintenance Fund that Maintains the Asset $ - $ 360,436

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO STATEMENT OF NET POSITION
Cash and Investments $ 5,326,718 $ 1,517,788
Restricted Cash and Investments Held in Pension Trust - 4,696,361 Total Cash and Cash Equivalents $ 5,326,718 $ 6,214,149

ATTACHMENT A

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FIDUCIARY FUNDS

ATTACHMENT A

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ATTACHMENT A

CITY OF STANTON

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
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Private-Purpose
Trust Funds
ASSETS
Current Assets:

Cash and Investments $ 4,620,392
Due From Other Governments 55,180
Restricted Assets:

Cash Held by Fiscal Agent 1,112,539
Total Assets 5,788,111

DEFERRED OUTFLOW OF RESOURCES
Deferred Amount on Refunding 8,148,616
Total Deferred Outflow of Resources 8,148,616

LIABILITIES
Current Liabilities:

Accounts Payable 414,878
Interest Payable 175,920
Bonds Payable - Current Portion 2,490,000
Total Current Liabilities 3,080,798
Long-Term Liabilities:

Bonds Payable 55,607,496
Total Long-Term Liabilities 55,607,496
Total Liabilities 58,688,294

NET POSITION
Held in Trust:

Restricted for Private Purposes:

Successor Agency to the Stanton Redevelopment Agency (44,837,653) NOCPTF 86,086
Total Net Position $ (44,751,567)

ATTACHMENT A

CITY OF STANTON

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(42)
Private-Purpose
Trust Funds

ADDITIONS
Taxes $ 5,076,010
Intergovernmental 4,583,433
Investment Income 1,902
Total Additions 9,661,345

DEDUCTIONS
Contractual Services 62,452
Public Safety 4,802,165
Interest and Fiscal Charges 2,682,990
Total Deductions 7,547,607
CHANGE IN NET POSITION 2,113,738
Net Position - Beginning of Year (46,865,305)
NET POSITION - END OF YEAR $ (44,751,567)

ATTACHMENT A

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NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT A

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ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Stanton, California (the City), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant City accounting policies are described below.

A. Description of Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the reporting government as a whole, except for its fiduciary activities. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no discretely presented component units.

B. Description of Reporting Entity
The City was incorporated under the general laws of the State of California and enjoys all rights and privileges pertaining to such “general law” cities.

The Housing Authority of the City of Stanton (Housing Authority), a blended component unit, was formed on March 22, 2011, to facilitate the retention and use of transferred properties from the former Redevelopment Agency consistent with the redevelopment plan and for the purposes of ongoing maintenance of completed development projects.

Although the Housing Authority is legally separate from the City, its financial operations are the responsibility of the City. In addition, the City Council has a continuing accountability for fiscal matters of the Housing Authority. Since the City Council acts as the Board of Directors and is able to impose its will on the Housing Authority, the City is considered the primary government and the Housing Authority is a component unit of the City. Additionally, since the governing bodies of the City and the Housing Authority are the same, the financial statements of the City and the component unit are blended. For presentation within the financial statements of the governmental reporting entity, the transactions between the Housing Authority and the City are reported as interfund transactions. The Housing Authority’s financial data and activity are presented as a Special Revenue Fund. The Housing Authority issues separate financial statements that can be by sending a request to City Hall at 7800 Katella Avenue, Stanton, CA 90680.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation
Government-Wide Financial Statements
While separate government-wide financial statements are presented, they are interrelated. The governmental activities column incorporates data from the governmental funds and internal service funds, while the business-type activity incorporates data from the government’s enterprise fund. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded in the government-wide financial statements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are charges between the government’s sewer functions and various other functions of the government.

Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund balance, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

The fund financial statements provide information about the government’s funds, including its fiduciary funds and blended component units. Separate financial statements for the government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements even though excluded from the government-wide financial statements, represent private-purpose trust funds.

The City reports the following major governmental funds:

The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law, or contractual agreement to some other fund, are accounted for in this fund. General operating expenses not paid through other funds are paid from this fund.

The Housing Authority Special Revenue Fund is used to account for the accumulated resources received from the former Redevelopment Agency’s Low- and Moderate-Income Housing Special Revenue Fund, rental income, and expenses related to low- and moderate-income housing.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
Lighting and Median Maintenance Special Revenue Fund – To account for benefit assessments levied under the 1919 Act Stanton Municipal Lighting District and the Stanton Lighting and Landscaping District No. 1 (Landscaping and Lighting Act of 1972) for street lighting and landscaping maintenance within the City.

The City reports the following major enterprise fund:

The Sewer Fund is used to account for the operations of the City’s sewer system.

Additionally, the City reports the following fund types:

Governmental Funds
The Special Revenue Funds are used to account for the revenues derived from specific revenue sources, which are usually required by law or administrative regulation to be accounted for in separate funds.

The Capital Projects Funds are used to account for financial resources segregated for the development, construction, and improvement of City facilities.

Proprietary Funds
The Internal Service Funds are used to account for the financing of services provided by the following departments to other departments of the City on a costreimbursement basis:
 Workers’ Compensation
 Liability/Risk Management
 Employee Benefits
 Fleet Maintenance
Fiduciary Funds
The Private-Purpose Trust Funds are used to account for the activities of the Successor Agency to the Stanton Redevelopment Agency and North Orange County Public Safety Task Force Fund.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(48)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation (Continued)
Interfund Transactions
During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/due to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between funds included in the governmental activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between funds included in business-type activities are eliminated so that only the net amount is included in internal balances in the business-type activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In the fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in the fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in the governmental activities column are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.

D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and private-purpose trust fund financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Revenue from property taxes is recognized in the fiscal year that the taxes are levied and collected within 60 days from the end of the fiscal year. Grants and similar items are recognized as revenues as soon as the eligibility requirements imposed by the provider have been satisfied. Unbilled receivables are recorded as revenues when services are provided.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(49)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of available spendable resources.

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Revenues are recognized as soon as they become 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 government 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, except for principal and interest on general long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisition of capital leases are reported as other financing sources.

Property taxes, sales tax, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end).

Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue (within 60 days of year-end). Amounts owed to the City, which are not available, are recorded as receivables and deferred inflows of resources. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City’s fiduciary funds consist of private-purpose trust funds, which are reported using the economic resources measurement focus and the accrual basis of accounting.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(50)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. New Accounting Pronouncements
GASB 84
In January 2017, GASB issued Statement No. 84 – Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments.

The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements.

This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets. The City adopted this standard in the current fiscal year. Implementation of GASB 84 resulted in the following: (1) reclassification of the previously reported agency fund, which no longer qualifies as a fiduciary fund, to the City’s General Fund, and (2) a restatement of beginning net position and fund balance of the governmental activities and general fund, respectively, see Note 16.

F. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense) until that time.

The City has the following items that qualify for reporting in this category:
 Deferred outflows related to pensions equal to employer contributions made after the measurement date of the net pension liability.
 Deferred outflows from OPEB resulting from differences between actual and expected experience and changes in assumptions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with retiree healthcare benefits through the plan.
 Deferred outflows from pensions resulting from differences between actual and expected experience and changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions.

These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(51)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Deferred Outflows/Inflows of Resources (Continued)
 Deferred outflows related to pensions and OPEB resulting from the net differences in projected and actual earnings on investments of the pension and OPEB plans’ fiduciary net position. These amounts are amortized over five years.

In addition to liabilities, the statement of net position and governmental funds balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
 Deferred inflows related to OPEB for differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with retiree healthcare benefits through the plans.  Deferred inflows from pensions resulting from changes in assumptions and changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average expecting remaining service lives of all employees that are provided with pensions through the plans.

G. Assets, Liabilities, Fund Balance and Net Position
Cash and Investments
The City considers all highly liquid investments, with a maturity of three months or less when purchased, to be cash equivalents. In addition, cash invested in the City’s cash management pool is considered to be cash equivalents. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool that maintains the general characteristics of a demand deposit account.

Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value represented by the external pool (in relation to the amortized cost of that portfolio).

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(52)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Receivables and Payables
Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and are considered available if received within 60 days of year-end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue, under the modified accrual basis of accounting, is limited to the amount that is deemed measurable and collectible. Loans extended from other funds are recorded as loans receivable.

Activity between funds, which is representative of lending/borrowing arrangements outstanding at the end of the fiscal year, is referred to as either due to/from other funds or advances 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.

Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure, are reported in the applicable governmental or business-type activities column in the governmentwide financial statements. Acquired assets are recorded at historical cost or estimated historical cost. Donated assets are valued at the acquisition value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add value to the assets or materially extend the life are not capitalized. Capital assets are defined as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year with the exception of land, structures and improvements, and infrastructure, which have a threshold of $50,000.

Depreciation is charged to operations using the straight-line method of depreciation over the estimated useful lives of the assets as follows:

Buildings and Improvements 20 - 50 Years
Equipment and Vehicles 5 - 20 Years
Infrastructure 20 - 50 Years
Compensated Absences Payable
Employees can carry forward up to 360 hours of earned, but unused, vacation leave.

Upon termination, the City is obligated to compensate employees the earned, but unused, vacation time. All vacation pay is accrued when incurred in the governmentwide and proprietary fund financial statements.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(53)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Claims and Judgments
The City records a liability for claims, judgments, and litigation when it is probable that a liability has been incurred at year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. City management believes that the aggregate accrual is adequate to cover such losses, including amounts for incurred but not reported claims. Estimated claims payables are recorded in the Workers’ Compensation and Liability/Risk Management Internal Service Funds as appropriate.

Property Taxes
The assessment, levy, and collection of property taxes are the responsibility of the County of Orange (the County). The City receives property taxes pursuant to an arrangement with the County known as the Teeter Plan, whereby the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City.

The City records property taxes as revenue when received from the County, except at year-end, when property taxes received within 60 days are accrued as revenue.

Property taxes are assessed and collected according to the following property tax calendar:

Lien Date: January 1
Levy Date: July 1 to June 30
Due Dates: November 1 – First Installment
March 1 – Second Installment
Collection Dates: December 10 – First Installment
April 10 – Second Installment
Net Position
The governmental and business-type activities in the government-wide financial statements and proprietary funds utilize a net position presentation. Net position is classified in the following categories:

Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and would be reduced by outstanding debt and capitalrelated payables that are attributed to the acquisition, construction, or improvement of the assets; however, the City did not have any such debt or liabilities.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of net investment in capital assets or restricted net position.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(54)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

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

Fund Balances
The fund balances reported on the fund statements consist of the following categories:

Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Committed – This classification includes amounts for which the use of such amounts is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City, and the adoption of a formal resolution prior to the end of the fiscal year is required to establish a fund balance commitment. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of resolution) to remove or revise the limitation.

An emergency equipment and maintenance reserve has been established through a resolution approved by the City Council. The reserve is calculated at $250,000. The reserve may be used to provide funding for nonscheduled capital asset repair and replacement. If used, this reserve will be replenished with future year-end operating surpluses. This emergency equipment and maintenance reserve has a balance of $250,000 as of June 30, 2021.

An emergency disaster contingency reserve has been established through a resolution approved by the City Council. The reserve is calculated at $2,500,000.

The reserve may be used to mitigate costs of unforeseeable emergencies, such as natural disasters, catastrophic events, or any situation requiring the declaration of an emergency as defined by Stanton Municipal Code Section 2.56.050.C. If used, this reserve will be replenished with future year-end operating surpluses. This emergency disaster contingency reserve has a balance of $2,500,000 as of June 30, 2021.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(55)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Fund Balances (Continued)
A capital improvement reserve has been established through a resolution approved by the City Council. This reserve may be used for key infrastructure and capital improvement projects and to provide capital repair and replacement funding. This capital improvement reserve has a balance of $5,911,735 as of June 30, 2021.

Assigned – This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed.

Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Administrative Services Director for that purpose. The Administrative Services Director determines the assigned amount based on encumbrances and any future budget deficits.

Unassigned – This classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted.

An economic uncertainty reserve has been established through a resolution approved by the City Council. This reserve is calculated as 16.67% (rounded to the next $100,000) of the general fund operating expenditures. The reserve may be used to mitigate annual budget revenue shortfalls as a protection from a fluctuating economy, including financial hardship or downturns in the economy. If used or if the City’s annual operating budget grows, this reserve will be replenished with future year-end operating surpluses. This economic emergency reserve has a balance of $4,300,000 as of June 30, 2021.

Spending Policy
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(56)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Program Revenues
Amounts reported as 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.

I. Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the sewer fund and internal service funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

J. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans and 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.

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

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(57)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, deferred outflows of resources, liabilities, deferred inflows of resources and disclosure of contingent assets and liabilities at the statement of net position date and reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balances
The following funds had deficit fund balances at June 30, 2021:

Internal Service Fund:

Liability/Risk Management (41,383) $
Employee Benefits (1,171,630)
The Employee Benefits Internal Service Fund has a deficit due to the long-term net pension liability and corresponding deferred outflows and inflows of resources and will be funded through future year charges to City funds.

B. Excess of Expenditures over Appropriations
The following funds reported expenditures exceeding appropriations at June 30, 2021:

Final Variance with
Budget Actual Final Budget
Other Governmental Funds:

CalGRIP Grant Special
Revenue Fund 36,724 $ $ 36,818 $ (94)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(58)
NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments as of June 30, 2021, were classified in the accompanying financial statements as follows:

Government-Wide Fiduciary
Statement of Statement of
Net Position Net Position Total
Unrestricted Assets:

Cash and Investments:

City 48,063,913 $ - $ 48,063,913 $
Private-Purpose Trust Funds - 4,620,392 4,620,392
Restricted Assets:

Cash and Investments Held in
Pension Trust:

City 4,696,361 - 4,696,361
Cash and Investments With
Fiscal Agents:

Private-Purpose Trust Funds - 1,112,539 1,112,539
Total Cash and Investments 52,760,274 $ 5,732,931 $ 58,493,205 $ Cash and investments at June 30, 2021, consisted of the following:

Cash in Hand $ 600
Deposits With Financial Institutions 4,229,436
Investments 54,263,169
Total Cash and Investments $ 58,493,205

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(59)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the City’s Investment Policy
The City’s Investment Policy is reviewed and adopted by the City Council each year.

Regarding allowable investment types, the investment policy is more conservative and restrictive than the investment vehicles authorized by Section 53600.5 of the California Government Code. Investment vehicles not specifically mentioned in the City’s investment policy are not authorized unless the policy is amended by the City Council or is approved as part of the provisions of the bond indentures. This table does not address investments of debt proceeds held by bond trustees that are governed by provisions of the debt agreements. This table also does not address investments of the pension trust through Public Agency Retirement Services’ (PARS) pooled trust, that are governed by the agreement between the City and the trustee. Investments are limited to the following:

Maximum Maximum
Investment Types Authorized by State Law Maximum Percentage Investment in or the City’s Investment Policy Maturity* of Portfolio One Issuer United States Treasury Notes 5 Years 100% None
United States Government-Sponsored
Agency Securities:

Federal Home Loan Banks (FHLB) 5 Years 100% 25%
Fannie Mae (FNMA) 5 Years 100% 25%
Federal Home Loan Mortgage Corp. (FHLMC) 5 Years 100% 25% Federal Farm Credit Banks (FFCB) 5 Years 100% 25%
All Other 5 Years 100% 25%
Local Agency Securities 5 Years 100% 5%
Collateralized Time Deposits (Nonnegotiable
Certificates of Deposit) 5 Years 20% None
Banker’s Acceptances 180 Days 40% 5%
Commercial Paper 270 Days 25% 5%
Medium-Term Corporate Notes 5 Years 30% 5%
Local Agency Investment Fund (LAIF) N/A 100% None
Certificate of Deposit Placement Service
(CDARS) and Negotiable Certificates of
Deposit 5 Years 30% 5%
Money Market Mutual Funds N/A 20% None
Asset-Backed and Mortgage-Backed
Securities 5 Years 20% 5%
Supranational 5 Years 30% 10%
Local Government Investment Pools N/A 100% None
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

N/A - Not Applicable

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(60)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City manages its exposure to interest rate risk 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 as of June 30, 2021:
12 Months 13 to 24 25 to 36 37 to 48
Investment Type or Less Months Months Months Total
Local Agency Investment
Fund (LAIF) 31,364,019 $ - $ - $ - $ 31,364,019 $
California Asset Management
Program (CAMP) 6,250,672 - - - 6,250,672
Negotiable Certificates of Deposit 2,406,569 2,563,390 2,898,027 1,046,768 8,914,754 Municipal Bonds 2,022,901 284,031 520,318 210,113 3,037,363 Held by Fiscal Agents:

Pension Trust - Public Agency
Retirement Services 4,696,361 - - - 4,696,361
Total $ 2,847,421 46,740,522 $ 3,418,345 $ 1,256,881 $ 54,263,169 $ Remaining Maturity (in Years)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(61)
NOTE 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, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s and Moody’s as of year-end for each investment type:

Minimum
Total as of Legal Moody's
Investment Type June 30, 2021 Rating S&P Rating Rating
Local Agency Investment Fund (LAIF) $ None Not Rated Not Rated 31,364,019 California Asset Management
Program (CAMP) None AAAm 6,250,672 Not Rated
Negotiable Certificates of Deposit A/A2 8,914,754 Not Rated Not Rated Municipal Bonds A A Not Rated 284,031
Municipal Bonds 210,113 A A Not Rated
Municipal Bonds 225,329 A A+ Not Rated
Municipal Bonds 401,464 A AA- Not Rated
Municipal Bonds 280,952 A AA+ Not Rated
Municipal Bonds 509,550 A AA Not Rated
Municipal Bonds 244,584 A AA Not Rated
Municipal Bonds 262,760 A AA Not Rated
Municipal Bonds 257,558 A A- Not Rated
Municipal Bonds 361,022 A AA- Not Rated
Held by Fiscal Agents:

Pension Trust-Public Agency
Retirement Services 4,696,361 None Not Rated Not Rated
Total Investments $ 54,263,169
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one nongovernment sponsored issuer (other than external investment pools) that represent 5 % or more of total City investments.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(62)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Any deposits in excess of depository insurance limits at the end of the year are collateralized by securities held at the depository financial institution’s trust department.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio multiplied by a fair value factor provided by LAIF). The balance available for withdrawal is based on the accounting records maintained by LAIF.

Investment in California Asset Management Program (CAMP) The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated by the California Government Code. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by CAMP for the entire CAMP portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CAMP, which are recorded on an amortized cost basis.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(63)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Cash and Investments - Pension Trust
The City established a trust account with the Public Agency Retirement Services (PARS) to hold assets that are legally restricted for use in funding future contributions to the City’s pension plan. The pension trust’s specific cash and investments are managed by a third-party portfolio manager under guidelines approved by the City.

Those guidelines are as follows:

Risk Tolerance: Moderate
Risk Management: The portfolio is constructed to control risk through four layers of diversification - asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value growth), managers, and securities. Disciplined mutual fund selection and monitoring process help to drive return potential while reducing portfolio risk.

Investment Objective: To provide current income and moderate capital appreciation. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important.

Strategic Ranges: 0% - 20% Cash
40% - 60% Fixed income
40% - 60% Equity
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted price of similar assets in active markets, and Level 3 inputs are significant unobservable inputs.

Negotiable certificates of deposit, United States Government-Sponsored Agency Securities, and Municipal Bonds classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(64)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2021:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Negotiable Certificates of Deposit $ - $ 8,914,754 $ 8,914,754 - $ Municipal Bonds - 3,037,363 3,037,363 -
Total Leveled Investments $ - $ 11,952,117 $ 11,952,117 - $ Investments Not Subject to Fair
Value Hierarchy:

Local Agency Investment
Fund (LAIF) 31,364,019
California Asset Management
Program (CAMP) 6,250,672
Held by Fiscal Agents:

Pension Trust - Public Agency
Retirement Services 4,696,361
Total Investment Portfolio $ 54,263,169

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(65)
NOTE 4 CAPITAL ASSETS
A summary of changes in governmental activities - capital assets at June 30, 2021, is as follows:

Governmental Activities
Balance at
July 1, 2020, Balance at
As Restated Additions Deletions June 30, 2021
Capital Assets, not Being Depreciated:

Land $ 39,914,355 $ (1,181,990) - $ $ 38,732,365
Construction in Progress 12,500 - (12,500) -
Total Capital Assets,
not Being Depreciated 48,992,056 (1,194,490) - 38,732,365 Capital Assets, Being Depreciated:

Buildings and Improvements 48,550,430 6,638 (587,036) 47,970,032 Equipment 858,478 85,278 (55,512) 888,244
Vehicles 849,828 109,458 (48,488) 910,798
Infrastructure 43,080,239 693,225 43,773,464 -
Total Capital Assets,
Being Depreciated 84,273,774 894,599 (691,036) 93,542,538 Less Accumulated Depreciation for:

Buildings and Improvements (11,294,335) (1,142,757) 183,992 (12,253,100) Equipment (790,807) (67,586) 49,632 (808,761)
Vehicles (598,840) (81,567) 48,477 (631,930)
Infrastructure (25,382,907) (1,091,299) (26,474,206) -
Total Accumulated Depreciation (35,822,256) (2,383,209) 282,101 (40,167,997) Total Capital Assets,
Being Depreciated, net 48,451,518 (1,488,610) (408,935) 53,374,541 Total Governmental Activities
Capital Assets, net $ 97,443,574 $ (1,488,610) $ (1,603,425) $ 92,106,906 Depreciation expense was charged to functions/programs of the governmental activities as follows:

General Government $ 179,246
Public Safety 162,940
Community Development 326,660
Public Works 1,284,824
Culture and Recreation 429,539
Total Depreciation Expense - Governmental
Activities $ 2,383,209

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(66)
NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activity
A summary of changes in the business-type activity - capital assets at June 30, 2021, is as follows:

Balance at Balance at
July 1, 2020 Additions Deletions June 30, 2021
Capital Assets, Being Depreciated:

Sanitary Plant $ 6,599,896 $ 148,814 $ 6,748,710 - $
General Plant 654,840 - - 654,840
Total Capital Assets,
Being Depreciated 7,254,736 148,814 7,403,550 -
Less Accumulated Depreciation for:

Sanitary Plant (2,106,702) (129,790) (2,236,492) -
General Plant (183,355) (13,096) (196,451) -
Total Accumulated Depreciation (2,290,057) (142,886) (2,432,943) - Total Capital Assets,
Being Depreciated, net 4,964,679 5,928 4,970,607 -
Business-Type Activity
Capital Assets, net $ 4,964,679 $ 5,928 $ 4,970,607 - $ Depreciation expense of $142,886 was charged to the sewer function/program.

NOTE 5 INTERFUND TRANSACTIONS
Due To and Due From
The composition of interfund balances as of June 30, 2021, is as follows:

Receivable Fund Payable Fund Amount
Major Governmental Funds: Housing Authority Special
General Fund Revenue Fund $ 262,625
Other Governmental Funds:

CDBG Special Revenue Fund 127,500
ARPA Special Revenue Fund 157,067
$ 547,192
The outstanding balance between funds results mainly from interfund borrowings to cover operating deficits due to the timing of receipt of grant funds.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(67)
NOTE 5 INTERFUND TRANSACTIONS (CONTINUED)
Advances
Advances is comprised of the following as of June 30, 2021:

Receivable Fund Payable Fund Amount
General Fund Lighting and Median Maintenance
Other Governmental Funds Special Revenue Fund $ 963,065 On March 23, 2021, the City Council authorized a loan from the General Fund to the Lighting Maintenance District Special Revenue Fund in a principal amount not to exceed $959,440 at an interest rate of 1.5% per year. The loan was formally acknowledged with a promissory note approved by Resolution No. 2021-09 on April 13, 2021. The loan will be repaid in semi-annual payments on June 30, and December of each year, beginning on December 31, 2021, and will mature on June 30, 2028. The proceeds of the loan were used to pay off the City’s lease agreement with Bank of the West that was secured to fund the purchase of streetlights from Southern California Edison. As of June 30, 2021, the balance includes $959,440 of principal and $3,625 of accrued interest.

Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2021, is as follows:

Transfers In Transfers Out Amount
General Fund Other Governmental Funds (1) $ 605,908
Other Governmental Funds Other Governmental Funds (2) 1,190,705 Other Governmental Funds General Fund (3) 77,048
Other Governmental Funds Sewer Enterprise Fund (2) 81,616 Internal Service Fund Internal Service Fund (4) 102,000 Total $ 2,057,277
During the fiscal year ended June 30, 2021, interfund transfers were made for the following purposes: (1) law enforcement services, fire protection services, and street maintenance; (2) capital projects for street improvements within the Capital Improvements Capital Projects Other Governmental Fund; (3) FaCT Grant Senior Transportation, and Stanton Central Park Maintenance Other Governmental Special Revenue Funds program expenditures not covered by grants or donors; (4) transfers between Internal Service Funds to provide funding for employee benefit costs.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(68)
NOTE 6 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2021, was as follows:

Rodeo 39 Marketplace LLC $ 1,948,244
Stanton Accessible Apartments Construction 383,436
Housing 101,095
First-Time Home Buyer 40,000
Housing Rehabilitation 1,028,000
Employee Computer 2,285
Allowance for Doubtful Accounts (383,436)
Total $ 3,119,624
In April 2021, the City entered into a public benefit agreement with Rodeo 39 Marketplace, LLC (“Rodeo 39”) to support and encourage economic and business development in the community with the purpose of generating municipal revenues to provide necessary public services and facilities. The City provided Rodeo 39 with a forgivable loan of $2,250,000 for the Rodeo 39 Public Market and Shops. The City agreed to credit the outstanding amount due on the loan by 50% of the sales tax, including transaction and use tax, revenue payable to the City that is generated by the Rodeo 39 Public Market (and the Raising Cane’s and InN-Out restaurants located in its parking lot) from its inception in September 2019 through October 1, 2030. In exchange for providing the economic development subsidy loan, Rodeo 39 is required to operate the site as a commercial retail center for at least ten years. During the fiscal year ended June 30, 2021, the City reduced the amount due on the loan by $301,756 to account for 50% of the sales tax and transaction and use tax revenue that was generated by the Rodeo 39 Public Market and Shops. As of June 30, 2021, the outstanding balance on the loan was $1,948,244.

In November 2004, the former Redevelopment Agency entered into a Residual Receipts Promissory Note with Stanton Accessible Apartments Construction. Under the terms of the agreement, the former Redevelopment Agency loaned $258,261 to Stanton Accessible Apartments Construction. The note commenced on May 5, 2005, and bears interest at 3% per year. The note was transferred to the Housing Authority on February 1, 2012. The total amount outstanding, including accrued interest at June 30, 2021, was $383,436, with an allowance for the forgivable amount of $383,436.

Housing loans receivable of $101,095 consists of various low-interest home loans made to low-income families and funded from small cities housing monies.

The First Time Home Buyer Assistance Program, or HOMES, was created by the former Redevelopment Agency in order to help existing and new residents purchase their first home. The HOMES program provides up to $40,000 in down payment assistance for eligible first-time home buyers of low to moderate income. Assistance is in the form of a 45-year loan with interest and payments deferred for the first 10 years of the loan. The HOMES loan is secured by a second trust deed in conjunction with a first mortgage offered by a participating lender. The loan was transferred to the Housing Authority on February 1, 2012.

The total amount outstanding at June 30, 2021, was $40,000.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(69)
NOTE 6 NOTES AND LOANS RECEIVABLE (CONTINUED)
The Housing Rehabilitation Loan Program offers loans of up to $50,000 for newer homes and up to $75,000 for pre-1960 homes to low- and moderate-income households. The purpose of the program is to assist Stanton’s homeowners with addressing code violations and eliminating blighted, unsafe, unsanitary, and deteriorating living conditions. The loans are interest free with deferred payments until the property is sold, refinanced, or a change in title occurs. The loans were transferred to the Housing Authority on February 1, 2012. The total amount outstanding at June 30, 2021, was $1,128,000.

Employees have the opportunity to purchase a personal computer with an interest-free twoyear loan from the City. Full-time employees, who have completed the one-year probationary period, or part-time employees, who have been employed with the City for over one year, are eligible to participate in this program. The total amount outstanding at June 30, 2021, was $2,285.

NOTE 7 LONG-TERM LIABILITIES
The following is a summary of long-term liability transactions as of June 30, 2021:

Governmental Activities
Balance at Balance at Due Due in
July 1, June 30, Within More Than
2020 Additions Deletions 2021 One Year One Year
Lease Payable $ 1,069,246 $ (1,069,246) - $ $ - $ - $ - Claims Payable 66,551 176,625 (39,962) 203,214 64,550 138,664 Compensated Absences 261,668 178,777 (158,192) 282,253 134,065 148,188 Total Governmental
Activities Long-Term
Liabilities $ 1,397,465 $ 355,402 $ (1,267,400) $ 485,467 $ 198,615 $ 286,852 Lease Payable
On September 4, 2019, the City entered into a lease purchase agreement (lease agreement) with Bank of the West to purchase electric streetlights totaling $1,125,000. The City repaid the entire amount of this lease during the fiscal year.

Claims Payable
The amount of claims payable for governmental activities at June 30, 2021, was $203,214.

This liability is being liquidated in the Workers’ Compensation and Liability/Risk Management Internal Service Funds.

Compensated Absences
The City’s liability for vested and unpaid compensated absences (accrued vacation and compensation time pay) in the governmental activities has been accrued and amounted to $282,253 at June 30, 2021. This liability is being liquidated in the Employee Benefits Internal Service Fund.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(70)
NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activity
The following is a summary of long-term debt transactions of the business-type activity as of June 30, 2021:

Balance at Balance at Due Due in
July 1, June 30, Within More Than
2020 Additions Deletions 2021 One Year One Year
Compensated Absences $ 3,014 $ 303 $ (613) 2,704$ $ 975 $ 1,729 In proprietary funds, the liability for vested and unpaid compensated absences (accrued vacation and compensation time pay) is reported in the sewer enterprise fund as the benefits are vested and earned. The compensated absences accrued in the Sewer Enterprise Fund amounted to $2,704 at June 30, 2021.

NOTE 8 RISK MANAGEMENT
Risk Pool Membership
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsurance, and arranges 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 Authority’s Board of Directors. The Board operates through a nine-member Executive Committee.

Excess Liability Program
Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third-party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $100,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. 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/risksharing-pools/.

Excess Workers’ Compensation Program
The City has a retained limit of $100,000 per occurrence for workers’ compensation claims.

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.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(71)
NOTE 8 RISK MANAGEMENT (CONTINUED)
Purchased Insurance
The City also participates in the following coverage programs provided by the Authority:
(A) All-Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $36,489,041. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible. (B) Earthquake and Flood Insurance. This coverage is part of the Property Protection Program. The City has total insured values of $17,969,760 scheduled for coverage under this program. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
(C) Pollution Legal Liability Insurance Program. 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.
(D) Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $3,000,000, and the deductible is $2,500. (E) Special Event Tenant User Liability Insurance. This coverage protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays the insurance broker and/or carrier. The insurance is facilitated by the Authority.

Claims Activity and Adequacy of Protection
Claim expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. As of June 30, 2021, the amount of these liabilities was $80,456. This liability is the City’s best estimate based on available information.

During the past three fiscal (claims) years, none of the above programs for protection have experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-2021.

A summary of the changes in claims liabilities for the past two fiscal years is as follows:

Fiscal Year Claims
Year Ended Claims Payable and Changes Claims Claims Payable June 30, July 1 in Estimates Payments June 30
2020 58,996 $ $ 19,700 $ (12,145) $ 66,551
2021 66,551 176,625 (39,962) 203,214

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(72)
NOTE 9 COMMITMENTS
On September 15, 1994, the former Redevelopment Agency entered into a Revenue Sharing Agreement with the City of Anaheim related to the development and operation of an automobile recycling facility by Pick Your Part. The location of the project is equally split between the cities of Stanton and Anaheim. All sales tax revenue for the project is collected in Stanton. Additionally, the City receives a recycling fee equal to $5 per automobile recycled by Pick Your Part at the project site. Under the terms of the agreement, the City of Anaheim will be compensated so as to mitigate the environmental impacts under CEQA associated with the project. Sales tax revenue generated by the project has been determined to be an appropriate measure of the impacts associated with the project. The City will pay to the City of Anaheim a portion of the recycling fee revenue equal to one-half of the sales tax revenue received by the City for the project on a calendar-year basis. In accordance with the agreement, the City has made payments totaling $39,218 to the City of Anaheim for the fiscal year ended June 30, 2021.

NOTE 10 ORANGE COUNTY FIRE AUTHORITY – JOINT VENTURE
In January 1995, the City entered into a joint powers agreement with 18 other cities and the County to create the Orange County Fire Authority (Fire Authority). The purpose of the Fire Authority is to provide for mutual fire protection, prevention and suppression services, and related and incidental services including, but not limited to, emergency medical and transport services, as well as providing facilities and personnel for such services. The Fire Authority’s governing board consists of one representative from each member city and two from the County. The operations of the Fire Authority are funded with structural fire fees collected by the County through the property tax roll or with cash contributions based on the Fire Authority’s annual budget. The City pays a cash contribution each year to the Fire Authority. The County pays all structural fire fees it collects to the Fire Authority. During the fiscal year ended June 30, 2021, the City paid $4,909,059 to the Fire Authority.

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2021. Upon dissolution of the Fire Authority, all surplus money and property of the Fire Authority will be conveyed or distributed to each member in proportion to all funds provided to the Fire Authority by that member or by the County on behalf of that member during its membership. Complete financial statements may be obtained from the Orange County Fire Authority, 1 Fire Authority Road, Irvine, CA 92602.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(73)
NOTE 11 RETIREMENT PLANS
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety and Miscellaneous (all other) Employee Pension Plans which are cost-sharing multiple-employer defined benefit pension plans administered by CalPERS.

Benefit provisions under the plans are established by state statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website at https://www.calpers.ca.gov/page/employers/ actuarial-resources/gasb.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services.

PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost-of-living adjustments for each plan are applied as specified by the California Public Employees’ Retirement Law.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(74)
NOTE 11 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The plans’ provisions and benefits in effect at the measurement date ended June 30, 2020, are summarized as follows:

Tier I Tier II Tier III - PEPRA
On or Prior to After On or After
Hire Date August 27, 2011 August 27, 2011 January 1, 2013 Benefit Formula 2%@55 2%@60 2%@62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement age 50 - 67 50 - 67 52 - 67
Monthly Benefits, as a % of Eligible
Compensation 1.426% to 2.418% 1.092% to 2.418% 1.0% to 2.5% Required Employee Contribution
Rates 6.902% 6.912% 6.750%
Required Employer Contribution
Rates:

Normal Cost Rate 11.031% 8.794% 7.732%
Payment of Unfunded Liability
and Extra Payments $ 417,607 $ 1,354 $ 4,954
Miscellaneous
Safety
Hire Date Closed
Benefit Formula 1/2%@55
Benefit Vesting Schedule 5 Years of Service
Benefit Payments Monthly for Life
Retirement Age 50 - 65
Monthly Benefits, As A % Of Eligible
Compensation 1.783% to 2.5%
Required Employee Contribution Rates (1) 0%
Required Employer Contribution $ 80,284
(1) The City currently outsources the safety function to the County. There are no members of the safety plan that are active employees of the city. Therefore, there are no required employee contribution rates. Instead, the required employer contribution is a dollar amount provided by CalPERS.

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(75)
NOTE 11 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Contributions (Continued)
The total plan contributions are determined through CalPERS’s annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The City made contributions of $695,052 and $80,284 to the Miscellaneous and Safety Plans, respectively, in the current fiscal year.

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City’s balances for the miscellaneous and safety plans are shown in the statement of net position as follows:

Governmental Business-Type
Activities Activity Total
Deferred Outflows of Resources:

Miscellaneous Plan $ 1,180,513 $ 4,503 $ 1,185,016
Safety Plan 252,998 - 252,998
Total Deferred Outflows
of Resources $ 1,433,511 $ 4,503 $ 1,438,014
Deferred Inflows of Resources:

Miscellaneous Plan (161,925) $ (618) $ $ (162,543)
Safety Plan (578,594) - (578,594)
Total Deferred Inflows
of Resources $ (740,519) $ (618) $ (741,137)
Net Pension Liability:

Miscellaneous Plan $ (6,008,178) $ (22,918) $ (6,031,096) Safety Plan (622,970) - (622,970)
Total Net Pension Liability $ (6,631,148) $ (22,918) $ (6,654,066) Pension Expense:

Miscellaneous Plan $ 944,880 $ 3,604 $ 948,484
Safety Plan 619,370 - 619,370
Total Pension Expense $ 1,564,250 $ 3,604 $ 1,567,854

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(76)
NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2021, the City reported net pension liabilities for its proportionate shares of the net pension liability of each plan as follows:

Proportionate
Share of Net
Pension Liability
Miscellaneous $ (6,031,096)
Safety (622,970)
Total Net Pension Liability $ (6,654,066)
The City’s net pension liability for each plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the plans is measured as of June 30, 2020, and the total pension liability for each plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each plan as of the measurement date ended June 30, 2019 and 2020, was as follows:

Miscellaneous Safety
Proportion - June 30, 2019 0.13918% 0.00763%
Proportion - June 30, 2020 0.14298% 0.00935%
Change - Increase (Decrease) 0.00380% 0.00172%

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(77)
NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ 695,052 $ -
Differences Between Actual and Expected
Experience 310,801 -
Change in Assumptions - (43,016)
Change in Employer's Proportion and Differences
Between the Employer's Contributions and the
Employer's Proportionate Share of Contributions - (119,527) Net Differences Between Projected and Actual
Earnings on Plan Investments 179,163 -
Total $ 1,185,016 $ (162,543)
Miscellaneous
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ 80,284 $ -
Differences Between Actual and Expected
Experience 48,309 -
Change in Assumptions - (2,075)
Change in Employer's Proportion and Differences
Between the Employer's Contributions and the 110,865 (576,519) Employer's Proportionate Share of Contributions
Net Differences Between Projected and Actual
Earnings on Plan Investments 13,540 -
Total $ 252,998 $ (578,594)
Safety

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(78)
NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The amount of $695,052 and $80,284 in the miscellaneous and safety plans, respectively, which is reported as deferred outflows of resources related to contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30, Miscellaneous Safety
2022 (866) $ $ (137,359)
2023 125,085 (129,695)
2024 117,271 (145,611)
2025 85,931 6,785
2026 - -
Thereafter - -
Total $ 327,421 $ (405,880)
Actuarial Assumptions
The total pension liability was based on the following assumptions:

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

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increase (1) (1)
Mortality Rate Table (2) (2)
Postretirement Benefit Increase (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and postretirement mortality rates includes:
15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017, that can be found on the CalPERS website. (3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(79)
NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations, as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long term (11+ years) using a building-block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Assumed Real Return Real Return
Asset Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) In the CalPERS ACFR, fixed income is included in global debt securities; liquidity is included in short-term investments; and inflation assets are included in both global equity securities and global debt securities.
(b) An expected inflation of 2.0% was used for this period. (c) An expected inflation of 2.92% was used for this period.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(80)
NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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 for each plan, calculated using the discount rate for each plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability 9,218,692 $ 2,855,342 $
Current Discount Rate 7.15% 7.15%
Net Pension Liability 6,031,096 $ 622,970 $
1% Increase 8.15% 8.15%
Net Pension Liability (Asset) 3,397,285 $ (1,208,903) $ Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plans
At June 30, 2021, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2021.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(81)
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
A. General Information about the OPEB Plan
The City provides postretirement medical benefits to retirees under CalPERS and the California Public Employees Medical and Hospital Care Act (PEMHCA). The City has entered into an agreement with California Employers’ Retiree Benefit Trust (CERBT) to prefund the City’s net OPEB liability. The program is an agent multiple-employer defined benefit health-care plan that provides health-care insurance for eligible retirees. To be eligible for postretirement benefits, employees must complete at least five years of continuous service and be a minimum of 50 years of age. The plan issues a publicly available financial report that includes financial statements and required supplementary information for the plan. Those reports may be obtained by writing or calling the plans at the following address or telephone number: CalPERS Member Services Division; P.O.

Box 942704, Sacramento, CA 94229-2704; 1-888-225-7377.

Employees Covered
As of the measurement date of June 30, 2020, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees or Beneficiaries Currently
Receiving Benefits 20
Active Employees 33
Total 53
Benefits
The City pays the greater of $215 per month or the PEMHCA minimum. The PEMHCA minimum was $139 and $143 for 2020 and 2021, respectively.

Contributions
Contribution requirements are established by City policy and may be amended by the City Council through negotiations with the respective unions. For the fiscal year ended June 30, 2021, the City had contributions of $25,640, which represents the implicit subsidy. The fiduciary net position of the plan was utilized to meet the remaining contribution requirements.

B. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(82)
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) B. Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
The total OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Entry-Age Normal Cost Method,
Actuarial Cost Method Level Percent of Pay
Actuarial Assumptions:

Discount Rate 6.50%
Inflation 2.75%
Projected Salary Increase 2.75% Per Year
Expected Long-Term Investment Rate of Return 6.50%
Health-Care Cost Trend Rates 4.00% Per Year
Pre-Retirement Turnover Derived from 2009 CalPERS
turnover for miscellaneous
employees
Mortality Derived from 2014 CalPERS active
mortality for miscellaneous
employees and 2014 CalPERS
mortality for retired safety
employees
The actuarial assumptions used in the June 30, 2019 valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.

Long-Term Expected Rate of Return
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. The asset class percentages are taken from the current composition of CERBT, and the expected yields are taken from a recent CalPERS publication for the pension fund:

Long-Term
Percentage Expected Real
Asset Class of Portfolio Rate of Return
All Equities 40.00% 7.795%
All Fixed Income 43.00% 4.500%
Real Estate Investment Trusts 8.00% 7.500%
All Commodities 4.00% 7.795%
Treasury Inflation Protected Securities 5.00% 3.250%
Total 100.00%

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(83)
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) B. Net OPEB Liability (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.50%. This is the expected long-term rate of return on City assets using investment strategy 2 within CERBT. The rate used for a funded plan is the real rate of return expected for plan assets plus long-term inflation assumption. This method was used to determine the discount rate assuming that the City’s contributions will be made on an ad hoc basis, but in an amount sufficient to fully fund the obligation over a period not to exceed 29 years.

Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on the plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

C. Changes in the Net OPEB Liability
The changes in the net OPEB liability (asset) are as follows:

Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
Balance at June 20, 2019
(Measurement Date) $ 888,886 1,014,187 $ 125,301 $
Changes in the Year:

Service Cost 20,295 - 20,295
Interest on the Total OPEB
Liability 64,039 - 64,039
Contributions - Employer - 25,640 (25,640)
Net Investment Income - 47,942 (47,942)
Administrative Expenses - (437) 437
Actual Benefit Payments (77,577) (77,577) -
Actual Minus Expected -
Benefit Payments (659) - (659)
Net Changes 6,098 (4,432) 10,530
Balance at June 30, 2020
(Measurement Date) $ 884,454 1,020,285 $ 135,831 $
Increase (Decrease)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(84)
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) C. Changes in the Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate:
1% Decrease Discount Rate 1% Increase
(5.50%) (6.50%) (7.50%)
Net OPEB Liability 245,778 $ 135,831 $ 44,383 $
Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using health-care cost trend rates that are one percentage point lower or one percentage point higher than the current health-care cost trend rates:

Current
Health-Care
Cost Trend
1% Decrease Rates 1% Increase
(3.00%) (4.00%) (5.00%)
Net OPEB Liability 96,944 $ 135,831 $ 180,422 $
D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized OPEB expense of $70,649. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Actual and Expected
Experience 115,347 $ (9,693) $
Change in Assumptions 293,110 -
Net Differences Between Projected and Accrual
Earnings on OPEB Plan Investments 4,055 -
Total $ 412,512 $ (9,693)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(85)
NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Amounts reported as deferred outflows and deferred inflows of resources will be recognized as OPEB expense as follows:

Year Ending June 30, Amount
2022 41,953 $
2023 41,953
2024 41,749
2025 42,700
2026 41,075
Thereafter 193,389
Total $ 402,819
E. Payable to the OPEB Plan
At June 30, 2021, the City had no outstanding amount of contributions to the OPEB plan as required for the year ended June 30, 2021.

NOTE 13 CLASSIFICATION OF FUND BALANCES
The City has adopted the provisions of GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. GASB 54 establishes fund balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The governmental funds statements conform to this classification. The various fund balance classifications established as of June 30, 2021, were as follows:

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(86)
NOTE 13 CLASSIFICATION OF FUND BALANCES (CONTINUED)
Housing Lighting and
Authority Median Maint Other Total
General Special Special Governmental Governmental
Fund Revenue Fund Revenue Fund Funds Funds
Nonspendable:

Prepaid Items 41,742 $ $ - $ - $ - $ 41,742
Notes and Loans Receivable 1,651,624 - - 1,651,624 -
Advances to Other Funds 795,414 - - 795,414 -
Total Nonspendable 2,488,780 - - 2,488,780 -
Restricted for:

Low- and Moderate-
Income Housing 14,075,781 - - 14,075,781 -
Parks Projects - - 3,499,901 - 3,499,901
Street Lighting and Median
Maintenance - 473,333 - 473,333 -
Streets and Roads
Maintenance, and
Capital Projects - - 1,997,736 - 1,997,736
Public Safety Program - - 451,895 - 451,895
Housing Rehabilitation
Projects for Low- and
Moderate-Income Persons - - - 86,024 86,024
Pollution Remediation - - 177,081 - 177,081
New Community Center - - 155,393 - 155,393
New Police Services Facility - - 140,376 - 140,376
Fire Protection - - - 4,576 4,576
Senior Mobility Program - - - 53,652 53,652
FAcT Program - - - 2,957 2,957
Traffic Signal Projects - - - 49,609 49,609
Disability Access Program - - - 44,223 44,223
Total Restricted 14,075,781 - 473,333 6,663,423 21,212,537 Committed for:

Emergency Equipment
and Maintenance 250,000 - - 250,000 -
Emergency Disaster
Contingency 2,500,000 - - 2,500,000 -
Capital Improvement 5,911,735 - - 5,911,735 -
Total Committed 8,661,735 - - 8,661,735 -
Assigned for:

Capital Improvement Projects - - 278,929 - 278,929
2020 Town Center
Specific Plan 162,833 - - 162,833 -
Cannabis Background Check
and Validation Services 56,550 - - - 56,550
Local Hazard Mitigation Plan 52,796 - - - 52,796
Housing and Safety Element
Plan Update 47,014 - - - 47,014
Overhead Cost Allocation
Plan and User Fee Study 28,126 - - - 28,126
Other Purposes 9,368 - - - 9,368
Total Assigned 356,687 - 278,929 - 635,616
Unassigned for:

Economic Uncertainty 4,300,000 - - 4,300,000 -
Unassigned 8,391,577 - - 8,391,577 -
Total Unassigned 12,691,577 - - 12,691,577 -
Total Fund Balances 24,198,779 $ $ 14,075,781 $ 473,333 $ 6,942,352 $ 45,690,245

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(87)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency (Agency) were transferred to the Successor Agency to the City of Stanton Redevelopment Agency on February 1, 2012, as a result of the dissolution of the Agency. The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to notes receivable and long-term liabilities are stated below:

Long-Term Liabilities
Long-term liability transactions for the year ended June 30, 2021, were as follows:

Due Due in
Balance at Balance at Within More Than
July 1, 2020 Additions Deletions June 30, 2021 One Year One Year Bonds Payable:

Tax Allocation Bonds
(TAB) 2010 Series A 11,085,000 $ $ - $ (11,085,000) $ - $ - $ - Add: Bond Premium 1,380 - (1,380) - - -
TAB, 2016 Series A 6,160,000 - (355,000) 5,805,000 365,000 5,440,000 Add: Bond Premium 427,879 - (30,563) 397,316 - 397,316
TAB, 2016 Series B 11,395,000 - (660,000) 10,735,000 680,000 10,055,000 Less: Issuance
Discounts (73,333) - 5,238 (68,095) - (68,095)
TAB, 2016 Series C 9,695,000 - - 9,695,000 - 9,695,000
Add: Bond Premium 716,269 - (35,813) 680,456 - 680,456
TAB, 2016 Series D 22,875,000 - (1,155,000) 21,720,000 1,180,000 20,540,000 Less: Issuance
Discounts (449,570) - 22,478 (427,092) - (427,092)
TAB 2020-A Payable - 7,935,000 7,935,000 - 265,000 7,670,000 Add: Bond Premium - 1,782,299 (157,388) 1,624,911 - 1,624,911 Total Bonds
Payable $ 61,832,625 $ 9,717,299 $ (13,452,428) $ 58,097,496 $ 2,490,000 $ 55,607,496 Tax Allocation Bonds, 2010 Series A
On October 28, 2010, the Agency issued Tax Allocation Bonds, 2010 Series A, in the amount of $25,280,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency, finance public facilities, capitalize a portion of interest with respect to the bonds, satisfy the reserve requirement of the bonds, and provide for the costs of issuing the bonds. The Tax Allocation Bonds were fully defeased in the current fiscal year with the issuance of the Tax Allocation Refunding Bonds 2020 Series A.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(88)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds, 2016 Series A
On February 2, 2016, the Agency issued Tax Allocation Refunding Bonds, 2016 Series A, in the amount of $7,115,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds.

The bonds bear interest rates between 2.00% to 5.00%, are due June 1 and December 1 of each year, and mature December 1, 2035. The bonds maturing on or after December 1, 2027, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2027, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set aside irrevocably for that purpose. See pledged revenues disclosure later in this note. With the issuance of the bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $5,805,000 at June 30, 2021.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 $ 365,000 $ 207,675 $ 572,675
2023 380,000 196,575 576,575
2024 300,000 185,275 485,275
2025 310,000 170,025 480,025
2026 325,000 154,150 479,150
2027-2031 1,890,000 516,931 2,406,931
2032-2036 2,235,000 173,719 2,408,719
Total $ 5,805,000 $ 1,604,350 $ 7,409,350

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(89)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Taxable Tax Allocation Refunding Bonds, 2016 Series B
On February 2, 2016, the Agency issued Taxable Tax Allocation Refunding Bonds, 2016 Series B, in the amount of $13,220,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds.

The bonds bear interest rates between 1.00% to 3.50%, are due June 1 and December 1 of each year, and mature December 1, 2035. The bonds maturing on or after December 1, 2027, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2027, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium. The bonds are subject to mandatory sinking account redemption in amounts ranging from $655,000 to $900,000 as outlined in the official statements.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set aside irrevocably for that purpose. See pledged revenues disclosure later in this note. With the issuance of the Bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $10,735,000 at June 30, 2021.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 $ 680,000 $ 387,600 $ 1,067,600
2023 690,000 369,613 1,059,613
2024 575,000 351,500 926,500
2025 595,000 333,578 928,578
2026 615,000 314,288 929,288
2027-2031 3,415,000 1,205,144 4,620,144
2032-2036 4,165,000 442,441 4,607,441
Total $ 10,735,000 $ 3,404,164 $ 14,139,164

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(90)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds, 2016 Series C
On December 15, 2016, the Agency issued Tax Allocation Refunding Bonds, 2016 Series C, in the amount of $10,030,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds. The 2010 Series A have been partially paid off as of June 30, 2019.

The bonds bear interest rates between 2.00% to 5.00%, are due June 1 and December 1 of each year, and mature December 1, 2040. The bonds maturing on or after December 1, 2026, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2026, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set-aside irrevocably for that purpose. See pledged revenues disclosure later in this note. With the issuance of the bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $9,695,000 at June 30, 2021.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 $ - $ 484,750 $ 484,750
2023 - 484,750 484,750
2024 - 484,750 484,750
2025 - 484,750 484,750
2026 - 484,750 484,750
2027 - 2031 - 2,423,750 2,423,750
2032 - 2036 - 2,423,750 2,423,750
2037 - 2041 9,695,000 1,259,625 10,954,625
Total $ 9,695,000 $ 8,530,875 $ 18,225,875

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(91)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds, 2016 Series D
On December 15, 2016, the Agency issued Tax Allocation Refunding Bonds, 2016 Series D, in the amount of $26,080,000. The purpose of the bonds was to refinance certain outstanding obligations of the Agency and provide for the costs of issuing the bonds.

The bonds bear interest rates between 2.00% to 5.00%, are due June 1 and December 1 of each year, and mature December 1, 2040. The bonds maturing on or after December 1, 2026, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2026, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set aside irrevocably for that purpose. See pledged revenues disclosure later in this note. With the issuance of the bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The outstanding balance of the bonds was $21,720,000 at June 30, 2021.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 $ 1,180,000 $ 792,263 $ 1,972,263
2023 1,205,000 760,944 1,965,944
2024 1,240,000 725,775 1,965,775
2025 1,280,000 687,175 1,967,175
2026 1,320,000 645,725 1,965,725
2027-2031 7,335,000 2,448,125 9,783,125
2032-2036 4,670,000 1,202,888 5,872,888
2037-2041 3,490,000 376,550 3,866,550
Total $ 21,720,000 $ 7,639,445 $ 29,359,445

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(92)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Taxable Tax Allocation Refunding Bonds, 2020 Series A
In August 2020, the Agency issued 2020A Tax Allocation Refunding Bonds in the amount of $7,935,000 to refund the 2010A Tax Allocation Bonds and provide for the costs of issuing the bonds.

The bonds bear interest at a rate of 4% that is payable on a semi-annual basis beginning June 1, 2021. Principal is payable December 1 of each year with a maturity date of December 1, 2035. The bonds maturing on or after December 1, 2030, are subject to optional redemption prior to maturity at the option of the Agency on any date on or after December 1, 2030, as a whole or in part at a redemption price equal to the principal amount of bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

Tax revenues are pledged for the payment of principal and interest on the bonds until the bonds and any parity debt have been paid or until monies have been set aside irrevocably for that purpose. See pledged revenues disclosure later in this note. With the issuance of the bonds, a municipal bond insurance policy was issued, which guarantees the scheduled payment of principal and interest on the bonds when due. This insurance policy serves as the reserve account.

The refunding resulted in cash flow difference of $3.8 million and an economic gain (difference between the present values of the old debt and new debt service payment) of $2.4 million.

The outstanding balance of the bonds was $7,935,000 at June 30, 2021.

The annual debt service requirements on these bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 $ 265,000 $ 312,100 $ 577,100
2023 360,000 299,600 659,600
2024 540,000 281,600 821,600
2025 560,000 259,600 819,600
2026 580,000 236,800 816,800
2027-2031 3,285,000 807,700 4,092,700
2032-2036 2,345,000 242,100 2,587,100
Total $ 7,935,000 $ 2,439,500 $ 10,374,500

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(93)
NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Pledged Revenues
The bonds payable are secured by a pledge of RPTTF monies. Pledged revenues and the covered debt service are as follows for the year ended June 30, 2021:

RPTTF Pledged Revenues $ 5,076,010
Total
Principal Interest Debt Service
2010A Tax Allocation Bonds $ - $ 46,792 $ 46,792
2016A Tax Allocation Bonds 355,000 218,525 573,525
2016B Tax Allocation Bonds 660,000 403,525 1,063,525
2016C Tax Allocation Bonds - 484,750 484,750
2016D Tax Allocation Bonds 1,155,000 820,006 1,975,006
2020A Tax Allocation Bonds - 236,287 236,287
Total $ 2,170,000 $ 2,209,885 $ 4,379,885
NOTE 15 CONTINGENT LIABILITIES
Lawsuits
The City is a defendant in certain legal actions arising in the normal course of operations. In the opinion of management and legal counsel, any liability resulting from these actions will not result in a material adverse effect on the City’s financial position.

Federal and State Grant Programs
The City has received federal grants for specific purposes that are subject to review and audit by the federal government. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material.

COVID-19
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of an outbreak of a new strain of coronavirus (the “COVID-19 outbreak”) and the risks that is posed to the international community as the virus spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic based on the rapid increase in exposure globally.

The City’s operations are heavily dependent on the ability to raise sales taxes, property taxes and transient occupancy taxes and assess business licenses, developer fees and construction permits. Additionally, access to grants and contracts from federal, state, and local governments may decrease or may not be available depending on appropriations. The outbreak may have a continued adverse impact on economic and market conditions, triggering a period of global economic slowdown. The City cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(94)
NOTE 16 RESTATEMENT
Governmental
Activities
Net position at July 1, 2020, as originally
reported 140,471,032 $
Reclassification of the portion of land in capital assets that represents buildings and improvements. Also,
recording the corresponding depreciation expense on
those buildings and improvements since the
acquisition date. (2,244,633) $
Implementation of GASB Statement No. 84,
Fiduciary Activities , reclassification of previously
reported fiduciary funds to the City's General Fund. 12,345 Net position at July 1, 2020, as restated $ 138,238,744 General Fund
Fund balance at July 1, 2020, as originally
reported $ 20,622,084
Implementation of GASB Statement No. 84,
Fiduciary Activities , reclassification of previously
reported fiduciary funds to the City's General Fund. 12,345 Fund balance at July 1, 2020, as restated $ 20,634,429

ATTACHMENT A

(95)

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY – CalPERS MISCELLANEOUS PENSION PLAN LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(96)
Fiscal Year Ended June 30 2021 2020
Measurement Period June 30 2020 2019
Plan's Proportion of the
Net Pension Liability 0.14930% 0.13918%
Plan's Proportionate Share of
the Net Pension Liability $ 6,031,096 $ 5,573,525
Plan's Covered Payroll $ 2,740,004 $ 2,544,215
Plan's Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 220.11% 219.07%
Plan's Proportionate Share of
Fiduciary Net Position as a
Percentage of the Plan's
Total Pension Liability 74.82% 75.26%
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

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

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of

7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan.

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

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2021:

There were no significant changes in assumptions.
* - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

CalPERS Miscellaneous Pension Plan

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY – CalPERS MISCELLANEOUS PENSION PLAN LAST TEN FISCAL YEARS* (CONTINUED)
YEAR ENDED JUNE 30, 2021
(97)
2019 2018 2017 2016 2015
2018 2017 2016 2015 2014

0.13424% 0.13038% 0.12626% 0.11916% 0.14740%
$ 5,139,562 5,059,084 $ 4,386,167 $ 3,269,137 $ 3,642,924 $ $ 2,188,343 2,644,646 $ 2,097,117 $ 1,968,200 $ 1,884,740 $ 191.30% 234.86% 209.15% 166.10% 193.29%

75.26% 73.31% 74.06% 82.31% 80.06%
CalPERS Miscellaneous Pension Plan

ATTACHMENT A

CITY OF STANTON
SCHEDULE OF CONTRIBUTIONS –

CALPERS MISCELLANEOUS PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(98)
Fiscal Year Ended June 30 2021 2020
Contractually Required Contribution
(Actuarially Determined) $ 645,052 $ 601,444
Contributions in Relation to the Actuarially
Determined Contributions (695,052) (601,444)
Contribution Deficiency (Excess) $ (50,000) $ -
Covered Payroll $ 3,151,386 $ 2,740,004
Contributions as a Percentage
of Covered Payroll 22.06% 21.95%
Notes to Schedule:

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

Actuarial Cost Method Entry Age Entry Age
Amortization Method (1) (1)
Asset Valuation Method Fair Value Fair Value
Inflation 2.500% 2.625%
Salary Increases (2) (2)
Investment Rate of Return 7.00% (3) 7.25% (3)
Retirement Age (4) (4)
Mortality (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with exception of 52 for Miscellaneous 2% @62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

CalPERS Miscellaneous Pension Plan

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF CONTRIBUTIONS -
CalPERS MISCELLANEOUS PENSION PLAN
LAST TEN FISCAL YEARS* (CONTINUED)
YEAR ENDED JUNE 30, 2021
(99)
2019 2018 2017 2016 2015
$ 469,444 $ 402,799 $ 327,584 $ 288,043 $ 745,208
(469,444) (402,799) (327,584) (288,043) (745,208)
$ - $ - $ - $ - $ -
$ 2,544,215 $ 2,644,646 $ 2,188,343 $ 2,097,117 $ 1,968,200

18.45% 15.23% 14.97% 13.74% 37.86%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age Entry Age Entry Age
(1)(1) (1)(1) (1)
Fair Value Fair Value Fair Value Fair Value 15 Year
Smoothed
Market Method

2.75% 2.75% 2.75% 2.75% 2.75%
(2)(2) (2)(2) (2)

7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
(4)(4) (4)(4) (4)
(5)(5) (5)(5) (5)
CalPERS Miscellaneous Pension Plan

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY – CalPERS SAFETY PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(100)
Fiscal Year Ended June 30 2021 2020
Measurement Period June 30 2020 2019
Plan's Proportion of the
Net Pension Liability 0.00935% 0.00763%
Plan's Proportionate Share of
the Net Pension Liability $ 622,970 $ 476,073
Plan's Covered Payroll $ - $ -
Plan's Proportionate Share of
the Net Pension Liability as a
Percentage of Covered Payroll 0.00% 0.00%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Plan's Total
Pension Liability 96.21% 97.30%
Notes to Schedule:

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

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

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of

7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

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

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2021:

There were no significant changes in assumptions.
* - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

CalPERS Safety Pension Plan

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY – CalPERS SAFETY PENSION PLAN
LAST TEN FISCAL YEARS* (CONTINUED)
YEAR ENDED JUNE 30, 2021
(101)
2019 2018 2017 2016 2015
2018 2017 2016 2015 2014

0.09504% 0.09231% 0.09501% 0.09572% 0.08756%
$ 5,515,903 5,576,370 $ 4,920,618 $ 3,944,111 $ 3,284,432 $ $ - - $ - $ - $ - $

0.00% 0.00% 0.00% 0.00% 0.00%

68.32% 69.27% 71.79% 77.44% 81.42%
CalPERS Safety Pension Plan

ATTACHMENT A

CITY OF STANTON
SCHEDULE OF CONTRIBUTIONS –

CALPERS SAFETY PENSION PLAN
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(102)
Fiscal Year Ended June 30 2021 2020
Contractually Required
Contribution (Actuarially
Determined) $ 80,284 $ -
Contributions in Relation to
the Actuarially Determined
Contributions (80,284) -
Contribution Deficiency (Excess) $ - $ -
Covered Payroll $ - $ -
Contributions as a Percentage
of Covered Payroll 0.00% 0.00%
Notes to Schedule:

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

Actuarial Cost Method Entry Age Entry Age
Amortization Method (1) (1)
Asset Valuation Method Fair Value Fair Value
Inflation 2.500% 2.625%
Salary Increases (2) (2)
Investment Rate of Return 7.00% (3) 7.25% (3)
Retirement Age (4) (4)
Mortality (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with exception of 52 for
(5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* - Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

CalPERS Safety Pension Plan

ATTACHMENT A

CITY OF STANTON
SCHEDULE OF CONTRIBUTIONS –
CalPERS SAFETY PENSION PLAN
LAST TEN FISCAL YEARS* (CONTINUED)
YEAR ENDED JUNE 30, 2021
(103)
2019 2018 2017 2016 2015
$ 559,861 $ 469,366 $ 226,818 $ 188,537 $ 157,551
(5,540,542) (469,366) (226,818) (188,537) (157,551)
$ (4,980,681) $ - $ - $ - $ -
$ - $ - $ - $ - $ -

0.00% 0.00% 0.00% 0.00% 0.00%
6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012
Entry Age Entry Age Entry Age Entry Age Entry Age
(1) (1) (1) (1) (1)
Fair Value Fair Value Fair Value Fair Value 15 Year
Smoothed
Market Method

2.75% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2)

7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3)
(4) (4) (4) (4) (4)
(5) (5) (5) (5) (5)
CalPERS Safety Pension Plan

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF CHANGES IN THE

NET OPEB LIABILITY (ASSET) AND RELATED RATIOS
LAST TEN FISCAL YEARS*
YEAR ENDED JUNE 30, 2021
(104)
Fiscal Year End 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service Cost $ 20,295 $ 11,308 $ 11,005 $ 10,710
Interest on Total OPEB Liability 64,039 33,517 33,513 33,968 Differences Between Expected
and Actual Experience 124,860 - - -
Changes in Assumptions 353,544 - - -
Benefit Payments, Including Refunds of
Employee Contributions (77,577) (52,347) (51,136) (52,812) Actual Minus Expected Benefit Payment (659) 14,271 - -
Net Change in Total OPEB Liability 6,098 485,153 (6,618) (8,134) Total OPEB Liability - Beginning of Year 1,014,187 529,034 535,652 543,786 Total OPEB Liability - End of Year (a) 1,020,285 1,014,187 529,034 535,652 Plan Fiduciary Net Position:

Contributions - Employer 25,640 - - 52,812
Net Investment Income 47,942 60,321 54,438 59,303
Administrative Expenses (437) (189) (1,623) (432)
Benefit Payments, Including Refunds of
Employee Contributions (77,577) (52,347) (51,136) (52,812) Net Change in Plan Fiduciary
Net Position (4,432) 7,785 1,679 58,871
Plan Fiduciary Net Position - Beginning of Year 888,886 881,101 879,422 820,551 Plan Fiduciary Net Position - End of Year (b) 884,454 888,886 881,101 879,422 Net OPEB Liability (Asset) - Ending (a)-(b) 135,831 $ 125,301 $ (352,067) $ (343,770) $ Plan Fiduciary Net Position as a Percentage
of the Total OPEB Liability (Asset) 86.69% 87.65% 166.55% 164.18% Covered - Employee Payroll 2,740,004 $ 2,544,215 $ 2,644,646 $ 2,188,343 $ Net OPEB Liability (Asset) as Percentage of
Covered - Employee Payroll 4.96% 4.92% -13.31% -15.71%
Notes to Schedule:

Changes in Assumptions:

There were no significant changes in assumptions for the measurement dates June 30, 2017 and 2018.

The following were the significant changes in assumptions for the measurement date June 30, 2019:

The implicit rate subsidy that includes using the claims or age-adjusted premiums approximating claims costs to determine the plan's liability was utilized for the measurement date June 30, 2019, and was not included.
* Fiscal year 2018 was the first year of implementation and therefore only four years are shown.

ATTACHMENT A

CITY OF STANTON

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2021
(105)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Taxes and Assessments 18,892,150 $ 20,188,110 $ 21,190,671 $ 1,002,561 $ Licenses and Permits 793,250 1,233,225 2,091,517 858,292 Intergovernmental 358,535 728,435 379,318 (349,117)
Charges for Services 2,152,485 2,494,356 2,821,788 327,432 Fines and Forfeitures 377,265 377,265 524,705 147,440
Interest Income 161,000 161,000 115,620 (45,380)
Rental Income 80,530 24,830 16,031 (8,799)
Miscellaneous 10,000 10,000 37,096 27,096
Total Revenues 22,825,215 25,217,221 27,176,746 1,959,525

EXPENDITURES
Current:

General Government 3,229,435 3,571,770 3,186,663 385,107 Public Safety 16,834,450 16,883,955 16,279,119 604,836
Community Development 1,832,655 2,632,228 2,218,329 413,899 Public Works 1,079,900 1,189,785 1,094,809 94,976
Culture And Recreation 1,239,550 1,307,262 1,290,831 16,431 Capital Outlay - - 71,505 (71,505)
Total Expenditures 24,215,990 25,585,000 24,141,256 1,443,744

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (367,779) (1,390,775) 3,035,490 3,403,269

OTHER FINANCING SOURCES (USES)
Transfers In 627,680 609,638 605,908 (3,730)
Transfers Out (34,180) (85,683) (77,048) 8,635
Total Other Financing
Sources (Uses) 593,500 523,955 528,860 4,905
NET CHANGE IN FUND BALANCE $ (797,275) $ 156,176 $ 3,564,350 $ 3,408,174 Fund Balance - Beginning of Year,
as Restated 20,634,429
FUND BALANCE - END OF YEAR $ 24,198,779

ATTACHMENT A

CITY OF STANTON
BUDGETARY COMPARISON SCHEDULE –

HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(106)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Interest Income 250,000 $ 150,000 $ 17,235 $ (132,765) $ Rental Income 500,000 500,000 562,993 62,993
Miscellaneous 11,500 2,000 1,171 (829)
Total Revenues 761,500 652,000 581,399 (70,601)

EXPENDITURES
Current:

General Government 256,930 256,930 169,255 87,675
Public Safety - 5,147,040 2,630,896 2,516,144
Community Development 404,625 1,157,650 675,200 482,450 Public Works - - 1,750 (1,750)
Total Expenditures 661,555 6,561,620 3,477,101 3,084,519

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ (5,909,620) 99,945 $ (2,895,702) 3,013,918 $

OTHER FINANCING SOURCES
Sale of Capital Assets 210,100 - 210,100 -
NET CHANGE IN FUND BALANCE $ 99,945 $ (5,699,520) (2,685,602) $ 3,013,918 Fund Balance - Beginning of Year 16,761,383
FUND BALANCE - END OF YEAR $ 14,075,781

ATTACHMENT A

CITY OF STANTON
BUDGETARY COMPARISON SCHEDULE –

LIGHTING AND MEDIAN MAINTENANCE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(107)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Taxes and Assessments $ 549,000 $ 566,500 $ 634,931 $ 68,431 Intergovernmental 1,000 400 1,071 671
Charges for Services 200,000 200,000 195,242 (4,758)
Interest Income 17,500 8,000 3,375 (4,625)
Total Revenues 767,500 774,900 834,619 59,719

EXPENDITURES
Current:

Public Safety 771,000 787,385 579,358 208,027
Debt Service:

Principal Retirement 113,735 1,069,246 1,069,246 -
Interest and Fiscal Charges 27,590 31,516 35,140 (3,624) Total Expenditures 912,325 1,888,147 1,683,744 204,403

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ (144,825) $ (1,113,247) (849,125) $ 264,122 Fund Balance - Beginning of Year 1,322,458
FUND BALANCE - END OF YEAR $ 473,333

ATTACHMENT A

CITY OF STANTON

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
(108)
NOTE 1 BUDGET AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. The City Manager is required, under City Code Section 2.08.050, to prepare and submit to the City Council the annual budget of the City and administer it after adoption. Legally, expenditures may not exceed total appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts within the accounts of any fund; however, any revisions between funds must be approved by the City Council. Prior-year appropriations lapse, unless they are encumbered at year-end, and reappropriated through the formal budget process.

The budgetary information shown for revenues and expenditures represent the original adopted budget adjusted for any changes made by the City Council or City Manager.

ATTACHMENT A

(109)

SUPPLEMENTARY INFORMATION

ATTACHMENT A

(110)

GENERAL FUND

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF GENERAL FUNDS
JUNE 30, 2021
(111)
General – The main operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund.

Transaction and User Tax – To account for sales taxes provided by Measure GG, which imposes an additional 1% sales tax available for general purposes.

City Trust – To account for assets held by the City for individuals, private business, and other governmental assets related to City operations. These assets include refundable and expendable cash deposits and retentions withheld pending satisfactory project completion.

ATTACHMENT A

CITY OF STANTON

COMBINING BALANCE SHEET

GENERAL FUND
JUNE 30, 2021
(112)
Total
Transaction General
General and User Tax City Trust Fund
ASSETS
Cash and Investments $ 20,303,763 $ (576,671) $ 29,714 $ 19,756,806 Receivables:

Accounts Receivable 204,569 - 53,021 257,590
Interest 29,200 - - 29,200
Taxes 1,131,164 945,771 2,076,935 -
Prepaid Items 41,742 - - 41,742
Due from Other Funds 547,192 - 547,192 -
Due from Other Governments 387,307 387,307 -
Notes and Loans Receivable 2,051,624 - 2,051,624 -
Advances to Other Funds 963,065 - 963,065 -
Total Assets $ 25,659,626 $ 369,100 $ 82,735 $ 26,111,461

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts Payable 1,066,870 $ - $ 39,151 $ 1,106,021 $
Accrued Liabilities 425,733 - - 425,733
Unearned Revenue 5,662 - - 5,662
Total Liabilities 1,498,265 - 39,151 1,537,416
Deferred Inflows of Resources:

Unavailable Revenues 322,245 - 53,021 375,266
Total Liabilities and Deferred
Inflows of Resources 1,820,510 - 92,172 1,912,682
Fund Balances (Deficits):

Nonspendable 2,488,780 - - 2,488,780
Committed 8,661,735 - - 8,661,735
Assigned 356,687 - - 356,687
Unassigned 12,331,914 369,100 (9,437) 12,691,577
Total Fund Balances (Deficits) 23,839,116 369,100 (9,437) 24,198,779 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 25,659,626 $ 369,100 $ 82,735 $ 26,111,461 $

ATTACHMENT A

CITY OF STANTON

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
(113)
Total
Transaction General
General and User Tax City Trust Fund

REVENUES
Taxes and Assessments 16,199,571 $ 4,991,100 $ - $ 21,190,671 $ Licenses and Permits 2,091,517 - - 2,091,517
Intergovernmental 379,318 - - 379,318
Charges for Services 2,745,638 - 76,150 2,821,788
Fines and Forfeitures 524,705 - 524,705 -
Interest Income 115,620 - 115,620 -
Rental Income 16,031 - - 16,031
Miscellaneous 37,096 - - 37,096
Total Revenues 22,109,496 4,991,100 76,150 27,176,746

EXPENDITURES
Current:

General Government 3,117,036 - 69,627 3,186,663
Public Safety 6,997,257 9,281,862 16,279,119 -
Community Development 2,175,121 19,063 24,145 2,218,329 Public Works 1,090,649 - 4,160 1,094,809
Culture and Recreation 1,290,831 - 1,290,831 -
Capital Outlay 71,505 - - 71,505
Total Expenditures 14,742,399 9,300,925 97,932 24,141,256

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,367,097 (4,309,825) (21,782) 3,035,490

OTHER FINANCING SOURCES (USES)
Transfers in 605,908 - 605,908 -
Transfers out (77,048) - (77,048) -
Total Other Financing
Sources (Uses) 528,860 - 528,860 -
NET CHANGE IN FUND BALANCES 7,895,957 (4,309,825) (21,782) 3,564,350 Fund Balances - Beginning of Year,
as Restated 15,943,159 4,678,925 12,345 20,634,429
FUND BALANCES - END OF YEAR $ 23,839,116 $ 369,100 $ (9,437) $ 24,198,779

ATTACHMENT A

(114)
This page intentionally left blank

ATTACHMENT A

(115)

OTHER GOVERNMENTAL FUNDS

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(116)

SPECIAL REVENUE FUNDS
Gas Tax – To account for the receipts and expenditures of money apportioned under the Streets and Highways Code Sections 2103, 2105, 2106, 2017, and 2017.5 of the State of California. These funds are earmarked for maintenance, rehabilitation or improvement of public streets.

Protective Services – To account for a special tax approved by the voters in August 1985 for fire protection and prevention services.

Coronavirus Aid, Relief, and Economic Security (“CARES”) Act – To account for revenues and expenditures made for the CARES Act funds received from the County and State to respond to COVID19.

Supplemental Law Enforcement Program Special Revenue Fund – To account for revenues and expenditures related to funding received under the State Citizens Option for Public Safety (COPS) program.

Air Quality Improvement Program – To account for the City’s share of additional motor vehicle registration fees, imposed by the South Coast Air Quality Management District, to finance the implementation of mobile source emission reduction programs and the provisions of the California Clean Air Act.

Families and Communities Together (FaCT) Grant – To account for revenues and expenditures related to funding received by the County of Orange, through the federal government, for the Family Preservation and Support Program.

CalGRIP Grant – To account for revenues and expenditures related to funding received by the Board of State and Community Corrections (BSCC) for the California Gang Reduction, Intervention and Prevention (CalGRIP) Program.

Senior Transportation – To account for the City’s share of funds identified as 1% of Renewed Measure M (M2) net sales tax revenue to be allocated to all local jurisdictions based upon the City’s respective percentage of senior population for the entire County of Orange.

Measure M – To account for funds received by the City as a result of the voter-approved ballot measure in 1990 and extended by voter approval in 2006 to increase sales tax by ½ percent in Orange County to fund transportation projects.

Public Safety Task Force (PSTF) – To account for funds used for the purpose of violence prevention and intervention activities.

Development Impact Fees – To account for street, traffic signal, community center, and police services impact fees.

Road Maintenance and Rehabilitation Account (RMRA) – To account for the receipts and expenditures of Road Maintenance and Rehabilitation Account (RMRA) funds resulting from the Road Repair and Accountability Act of 2017 (SB1). Funds are restricted for maintenance, rehabilitation or improvement of streets, freeways, bridges and other transit related improvements.

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021
(117)

SPECIAL REVENUE FUNDS (CONTINUED)
Stanton Central Park Maintenance – To account for donations received for maintenance of the central park.

Community Development Block Grant (CDBG) – To account for grants requiring segregated fund accounting, such as the Community Development Block Grant program.

Certified Access Specialist Program (CASP) – To account for the state-mandated $4 fee that is required by Senate Bill 1186 to be collected with each business license issued by the City in order to fund certified access specialist programs.

American Recovery Plan Act (ARPA) – To account for revenues and expenditures made for the ARPA funds received from the State to respond to cover revenue shortfalls and response to COVID-19.

CAPITAL PROJECTS FUNDS
Capital Improvements – To account for financial resources segregated for the acquisition of major general City capital facilities, other than those financed by Proprietary or Special Revenue Funds.

Park and Recreation Facilities – To account for the financial resources segregated for park or recreational purposes, pursuant to Stanton Municipal Code Section 19.42.090.

ATTACHMENT A

CITY OF STANTON

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(118)
Gas Protective
Tax Services CARES Act
ASSETS
Cash and Investments 793,010 $ - $ $ -
Receivables:

Accounts Receivable - - -
Interest 501 - -
Taxes - 4,576 -
Prepaid Items - - -
Due from Other Governments 101,481 -
Total Assets $ 894,992 $ 4,576 $ -

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts Payable $ 5,727 $ - $ -
Due to Other Funds - - -
Total Liabilities 5,727 - -
Deferred Inflows of Resources:

Unavailable Revenues - - -
Total Liabilities and Deferred
Inflows of Resources 5,727 - -
Fund Balances (Deficits):

Restricted 889,265 4,576 -
Assigned - - -
Total Fund Balances (Deficits) 889,265 4,576 -
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 894,992 $ 4,576 $ -
Special Revenue Funds

ATTACHMENT A

CITY OF STANTON

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(119)
Supplemental Air
Law Quality
Enforcement Improvement FaCT CalGRIP Senior
Program Program Grant Grant Transportation Measure M
$ 376,904 $ 158,943 $ 35,565 $ 4,167 $ 47,731 $ 532,351 - 5,028 - - - -
319 136 - 21 35 367
- - - - - -
63,226 - - - - -
61,285 12,974 - - 5,886 88,562
$ 501,734 $ 177,081 $ 35,565 $ 4,188 $ 53,652 $ 621,280 $ 1,042 $ - $ 32,608 $ 4,188 $ - $ -
- - - - - -
1,042 - 32,608 4,188 - -
61,285 - - - - -
62,327 - 32,608 4,188 - -
439,407 177,081 2,957 - 53,652 621,280
- - - - - -
439,407 177,081 2,957 - 53,652 621,280
$ 501,734 $ 177,081 $ 35,565 $ 4,188 $ 53,652 $ 621,280 Special Revenue Funds

ATTACHMENT A

CITY OF STANTON

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(120)
Development
Impact
PSTF Fees RMRA
ASSETS
Cash and Investments $ 77,828 $ 426,351 $ 273,711
Receivables:

Accounts Receivable - - 10,000
Interest - 307 188
Taxes - - -
Prepaid Items 12,488 - -
Due from Other Governments - 132,012 -
Total Assets $ 90,316 $ 426,658 $ 415,911

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts Payable 77,828 $ - $ - $
Due to Other Funds - - -
Total Liabilities 77,828 - -
Deferred Inflows of Resources:

Unavailable Revenues - - 10,000
Total Liabilities and Deferred
Inflows of Resources 77,828 - 10,000
Fund Balances (Deficits):

Restricted 12,488 426,658 405,911
Assigned - - -
Total Fund Balances (Deficits) 12,488 426,658 405,911
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 90,316 $ 426,658 $ 415,911 Special Revenue Funds

ATTACHMENT A

CITY OF STANTON

COMBINING BALANCE SHEET (CONTINUED)

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2021
(121)
Total
Stanton Park and Other
Central Park Capital Recreation Governmental
Maintenance CDBG CASP ARPA Improvements Facilities Funds $ - $ 213,368 $ 44,223 -$ $ 329,511 $ 3,497,389 $ 6,811,052 - - - - - - 15,028
- 156 - - - 2,512 4,542
- - - - - - 4,576
- - - - - - 75,714
- 127,500 - 177,776 - - 707,476
$ - $ 341,024 $ 44,223 177,776$ $ 329,511 $ 3,499,901 $ 7,618,388 $ - -$ -$ $ 20,709 $ 50,582 $ 192,684 - $
- 127,500 - 157,067 - - 284,567
- 127,500 - 177,776 50,582 - 477,251
- 127,500 - - - - 198,785
- 255,000 - 177,776 50,582 - 676,036
- 86,024 44,223 - - 3,499,901 6,663,423
- - - - 278,929 278,929
- 86,024 44,223 - 278,929 3,499,901 6,942,352
$ - $ 341,024 $ 44,223 177,776$ $ 329,511 $ 3,499,901 $ 7,618,388 Special Revenue Funds Capital Projects Funds

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(122)
Gas Protective
Tax Services CARES Act

REVENUES
Taxes and Assessments 610,476 $ - $ $ -
Intergovernmental 272,597 1,347,837 -
Charges for Services 377,159 - -
Interest Income 715 - 360
Miscellaneous - - -
Total Revenues 883,788 377,159 1,348,197

EXPENDITURES
Current:

General Government - 1,011,689 -
Public Safety - 1,313 319,288
Community Development - - -
Public Works 111,890 - -
Culture and Recreation - - -
Capital Outlay - - 8,000
Debt Service:

Principal Retirement - - -
Interest and Fiscal Charges - - -
Total Expenditures 111,890 1,313 1,338,977

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 771,898 375,846 9,220

OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out (100,000) (412,318) -
Total Other Financing Sources (Uses) (100,000) (412,318) - NET CHANGE IN FUND BALANCES 671,898 (36,472) 9,220
Fund Balances (Deficit) - Beginning of Year 217,367 41,048 (9,220) FUND BALANCES - END OF YEAR $ 889,265 $ 4,576 $ -
Special Revenue Funds

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(123)
Supplemental Air
Law Quality
Enforcement Improvement FaCT CalGRIP Senior
Program Program Grant Grant Transportation Measure M
$ - - $ - $ - $ - $ - $
51,026 156,731 310,000 - 35,081 527,831
- - - - - -
538 1,043 - 94 99 1,590
4,938 - 3,400 - - -
56,502 157,774 313,400 94 35,180 529,421
- - - - - -
- 37,115 - 36,818 - -
- - - - - -
- - - - - -
- - 327,193 - 23,038 -
109,369 - - - - -
- - - - - -
- - - - - -
37,115 109,369 327,193 36,818 23,038 -
120,659 (52,867) (13,793) (36,724) 12,142 529,421
- - 16,750 - 4,509 -
(93,590) - - - (446,391) -
(93,590) - 16,750 - 4,509 (446,391)
27,069 (52,867) 2,957 (36,724) 16,651 83,030
412,338 229,948 - 36,724 37,001 538,250
$ 439,407 $ 177,081 $ 2,957 $ - $ 53,652 $ 621,280
Special Revenue Funds

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(124)
Development
Impact
PSTF Fees RMRA

REVENUES
Taxes and Assessments $ - $ 724,431 - $
Intergovernmental 633,333 - -
Charges for Services 148,570 - -
Interest Income - 974 1,146
Miscellaneous - - -
Total Revenues 633,333 149,544 725,577

EXPENDITURES
Current:

General Government - - -
Public Safety 620,845 - -
Community Development - - -
Public Works - - 6,527
Culture and Recreation - - -
Capital Outlay - - -
Debt Service:

Principal Retirement - - -
Interest and Fiscal Charges - - -
Total Expenditures 620,845 - 6,527

EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 12,488 149,544 719,050

OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - (744,314) -
Total Other Financing Sources (Uses) - (744,314) -
NET CHANGE IN FUND BALANCES 12,488 149,544 (25,264)
Fund Balances - Beginning of Year 277,114 - 431,175
FUND BALANCES - END OF YEAR $ 12,488 $ 426,658 $ 405,911 Special Revenue Funds

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
(125)
Total
Stanton Park and Other
Central Park Capital Recreation Governmental
Maintenance CDBG CASP ARPA Improvements Facilities Funds $ -$ - -$ -$ $ - $ 1,334,907 - $
100,000 - - 177,776 - 3,612,212 -
- - 7,595 - 1,464,911 - 1,998,235
- 732 - - - 7,662 14,953
50,000 - - - - - 58,338
50,000 100,732 7,595 177,776 1,472,573 - 7,018,645
- - - - - 1,011,689 -
- - - 177,776 - 1,193,155 -
275,351 - - - - 275,351 -
- - - - 620,906 739,323 -
73,286 - - - - 7,150 430,667
- - - - 693,225 810,594 -
- - - - - - -
- - - - - - -
73,286 275,351 - 177,776 1,314,131 7,150 4,460,779
(23,286) (174,619) 7,595 - (1,314,131) 1,465,423 2,557,866 55,789 - - - 1,272,321 1,349,369 -
- - - - - (1,796,613) -
55,789 - - - 1,272,321 (447,244) -
32,503 (174,619) 7,595 - (41,810) 1,465,423 2,110,622
(32,503) 260,643 36,628 - 320,739 2,034,478 4,831,730
$ 86,024$ - 44,223$ -$ 278,929 $ $ 3,499,901 $ 6,942,352 Special Revenue Funds Capital Projects Funds

ATTACHMENT A

CITY OF STANTON

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

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(126)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Taxes and Assessments $ 612,810 485,118 $ 610,476 $ (2,334) $ Intergovernmental 304,190 261,470 272,597 (31,593)
Interest Income 2,000 5,000 715 (1,285)
Total Revenues 919,000 751,588 883,788 (35,212)

EXPENDITURES
Current:

Public Works 150,926 46,405 111,890 39,036
Total Expenditures 150,926 46,405 111,890 39,036

EXCESS OF REVENUES
OVER EXPENDITURES 768,074 705,183 771,898 3,824

OTHER FINANCING USES
Transfers Out (130,500) (240,840) (100,000) 30,500
Total Other Financing Uses (130,500) (240,840) (100,000) 30,500 NET CHANGE IN FUND BALANCE $ 637,574 464,343 $ 671,898 34,324 $ Fund Balance - Beginning of Year 217,367
FUND BALANCE - END OF YEAR $ 889,265

ATTACHMENT A

CITY OF STANTON

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

PROTECTIVE SERVICES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(127)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Charges for Services 380,000 $ 380,000 $ 377,159 $ (2,841) $ Total Revenues 380,000 380,000 377,159 (2,841)

EXPENDITURES
Current:

Public Safety 5,000 5,000 1,313 3,687
Total Expenditures 5,000 5,000 1,313 3,687

EXCESS OF REVENUES
OVER EXPENDITURES 375,000 375,000 375,846 846

OTHER FINANCING USES
Transfers Out (413,590) (416,048) (412,318) 3,730
Total Other Financing Uses (413,590) (416,048) (412,318) 3,730 NET CHANGE IN FUND BALANCE $ (41,048) (38,590) $ (36,472) 4,576 $ Fund Balance - Beginning of Year 41,048
FUND BALANCE - END OF YEAR $ 4,576

ATTACHMENT A

CITY OF STANTON

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

CARES ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(128)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental - $ 1,347,837 $ 1,347,837 $ - $
Interest Income - 400 360 (40)
Total Revenues - 1,348,237 1,348,197 (40)

EXPENDITURES
Current:

General Government - 1,011,689 1,011,689 -
Public Safety - 319,328 319,288 40
Capital Outlay - 8,000 8,000 -
Total Expenditures - 1,339,017 1,338,977 40

EXCESS OF REVENUES
OVER EXPENDITURES 9,220 - 9,220 -
NET CHANGE IN FUND BALANCE $ 9,220 - $ 9,220 - $
Fund Balance (Deficit) - Beginning of Year (9,220)
FUND BALANCE - END OF YEAR $ -

ATTACHMENT A

CITY OF STANTON

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

SUPPLEMENTAL LAW ENFORCEMENT PROGRAM SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
(129)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 125,000 $ 157,000 $ 156,731 $ (269) $ Interest Income - - 1,043 1,043
Total Revenues 125,000 157,000 157,774 774

EXPENDITURES
Current:

Public Safety 20,000 119,300 37,115 82,185
Total Expenditures 20,000 119,300 37,115 82,185

EXCESS OF REVENUES
OVER EXPENDITURES 37,700 105,000 120,659 82,959

OTHER FINANCING USES
Transfers Out (93,590) (93,590) (93,590) -
Total Other Financing Uses (93,590) (93,590) (93,590) - NET CHANGE IN FUND BALANCE $ (55,890) 11,410 $ 27,069 82,959 $ Fund Balance - Beginning of Year 412,338
FUND BALANCE - END OF YEAR $ 439,407

ATTACHMENT A

CITY OF STANTON

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

AIR QUALITY IMPROVEMENT PROGRAM SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(130)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental $ 50,000 50,000 $ 51,026 $ 1,026 $
Interest Income 3,500 3,500 538 (2,962)
Miscellaneous - - 4,938 4,938
Total Revenues 53,500 53,500 56,502 3,002

EXPENDITURES
Current:

Public Works 1,000 1,000 - 1,000
Capital Outlay 160,000 160,000 109,369 50,631
Total Expenditures 161,000 161,000 109,369 51,631

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ (107,500) $ (107,500) (52,867) $ 54,633 Fund Balance - Beginning of Year 229,948
FUND BALANCE - END OF YEAR $ 177,081

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
FAMILIES AND COMMUNITIES TOGETHER (FaCT) GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
(131)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 300,000 $ 321,800 $ 310,000 $ (11,800) $ Miscellaneous - 3,400 3,400 -
Total Revenues 300,000 325,200 313,400 (11,800)

EXPENDITURES
Current:

Culture and Recreation 311,010 336,210 327,193 9,017
Total Expenditures 311,010 336,210 327,193 9,017

EXCESS OF REVENUES
UNDER EXPENDITURES (11,010) (11,010) (13,793) (2,783)

OTHER FINANCING SOURCES
Transfers In 24,750 16,750 16,750 -
Total Other Financing Sources 24,750 16,750 16,750 -
NET CHANGE IN FUND BALANCE $ 5,740 13,740 $ 2,957 (2,783) $ Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ 2,957

ATTACHMENT A

CITY OF STANTON

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
CalGRIP GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(132)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Interest income $ - - $ 94 $ 94 $
Total Revenues - - 94 94

EXPENDITURES
Current:

Public Safety 36,724 37,520 36,818 (94)
Total Expenditures 37,520 36,724 36,818 (94)

EXCESS OF REVENUES
UNDER EXPENDITURES $ (36,724) (37,520) $ (36,724) - $
Fund Balance - Beginning of Year 36,724
FUND BALANCE - END OF YEAR $ -

ATTACHMENT A

CITY OF STANTON

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

SENIOR TRANSPORTATION SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(133)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 37,710 $ 37,710 $ 35,081 $ (2,629) $
Interest Income - - 99 99
Total Revenues 37,710 37,710 35,180 (2,530)

EXPENDITURES
Current:

Culture and Recreation 47,140 47,140 23,038 24,102
Total Expenditures 47,140 47,140 23,038 24,102

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (9,430) (9,430) 12,142 21,572

OTHER FINANCING SOURCES
Transfers In 9,430 9,430 4,509 (4,921)
Total Other Financing Sources 9,430 9,430 4,509 (4,921) NET CHANGE IN FUND BALANCE $ - - $ 16,651 16,651 $
Fund Balance - Beginning of Year 37,001
FUND BALANCE - END OF YEAR $ 53,652

ATTACHMENT A

CITY OF STANTON

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

MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(134)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 475,790 $ 475,790 $ 527,831 $ 52,041 $ Interest Income 12,000 3,000 1,590 (1,410)
Total Revenues 487,790 478,790 529,421 50,631

EXPENDITURES - - - -

EXCESS OF REVENUES
OVER EXPENDITURES $ 478,790 487,790 $ 529,421 50,631 $

OTHER FINANCING USES
Transfers Out (790,000) (804,325) (446,391) 357,934
Total Other Financing Uses (790,000) (804,325) (446,391) 357,934 NET CHANGE IN FUND BALANCE $ (302,210) $ (325,535) 83,030 $ 408,565 Fund Balance - Beginning of Year 538,250
FUND BALANCE - END OF YEAR $ 621,280

ATTACHMENT A

CITY OF STANTON

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

PUBLIC SAFETY TASK FORCE (PSTF) SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(135)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 633,335 $ 633,335 $ 633,333 $ (2) $
Total Revenues 633,335 633,335 633,333 (2)

EXPENDITURES
Current:

Public Safety 635,258 633,335 620,845 12,490
Capital Outlay 9,500 - - -
Total Expenditures 644,758 633,335 620,845 12,490

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ - (11,423) $ 12,488 12,488 $
Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ 12,488

ATTACHMENT A

CITY OF STANTON

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

DEVELOPMENT IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(136)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Charges for Services 98,000 $ 107,000 $ 148,570 $ 41,570 $ Interest Income 2,800 2,800 974 (1,826)
Total Revenues 100,800 109,800 149,544 39,744

EXPENDITURES - - - -

EXCESS OF REVENUES
OVER EXPENDITURES 109,800 100,800 149,544 39,744

OTHER FINANCING USES
Transfers Out (26,000) (26,000) - 26,000
Total Other Financing Uses (26,000) (26,000) - 26,000
NET CHANGE IN FUND BALANCE $ 83,800 74,800 $ 149,544 65,744 $ Fund Balance - Beginning of Year 277,114
FUND BALANCE - END OF YEAR $ 426,658

ATTACHMENT A

CITY OF STANTON

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

ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
(137)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 556,800 $ 701,470 $ 724,431 $ 22,961 $ Interest Income 7,500 3,000 1,146 (1,854)
Total Revenues 564,300 704,470 725,577 21,107

EXPENDITURES
Current:

Public Works - 37,426 6,527 30,899
Total Expenditures - 37,426 6,527 30,899

EXCESS OF REVENUES
OVER EXPENDITURES 667,044 564,300 719,050 52,006

OTHER FINANCING USES
Transfers Out (810,850) (810,850) (744,314) 66,536
Total Other Financing Uses (810,850) (810,850) (744,314) 66,536 NET CHANGE IN FUND BALANCE $ (246,550) $ (143,806) (25,264) $ 118,542 Fund Balance - Beginning of Year 431,175
FUND BALANCE - END OF YEAR $ 405,911

ATTACHMENT A

CITY OF STANTON

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

STANTON CENTRAL PARK MAINTENANCE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(138)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Miscellaneous 50,000 $ 50,000 $ 50,000 $ - $
Total Revenues 50,000 50,000 50,000 -

EXPENDITURES
Current:

Culture and Recreation 32,000 77,000 73,286 3,714
Total Expenditures 32,000 77,000 73,286 3,714

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (27,000) 18,000 (23,286) 3,714

OTHER FINANCING SOURCES
Transfers In - 59,503 55,789 (3,714)
Total Other Financing Sources - 59,503 55,789 (3,714)
NET CHANGE IN FUND BALANCE $ 18,000 $ 32,503 32,503 $ - Fund Balance - Beginning of Year (32,503)
FUND BALANCE - END OF YEAR $ -

ATTACHMENT A

CITY OF STANTON

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

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
(139)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental 100,000 $ 378,181 $ 100,000 $ (278,181) $ Interest Income 5,000 1,000 732 (268)
Total Revenues 105,000 379,181 100,732 (278,449)

EXPENDITURES
Current:

General Government - 20,000 - 20,000
Community Development 100,000 403,181 275,351 127,830
Total Expenditures 100,000 423,181 275,351 147,830

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ (44,000) 5,000 $ (174,619) (130,619) $ Fund Balance - Beginning of Year 260,643
FUND BALANCE - END OF YEAR $ 86,024

ATTACHMENT A

CITY OF STANTON

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

CERTIFIED ACCESS SPECIALIST PROGRAM (CASP) SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2021
(140)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Charges for Services - $ 8,000 $ 7,595 $ (405) $
Total Revenues - 8,000 7,595 (405)

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ 8,000 - $ 7,595 (405) $
Fund Balance - Beginning of Year 36,628
FUND BALANCE - END OF YEAR $ 44,223

ATTACHMENT A

CITY OF STANTON

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

AMERICAN RESCUE PLAN ACT (ARPA) SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
(141)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Intergovernmental - $ 177,780 $ 177,776 $ (4) $
Total Revenues - 177,780 177,776 (4)

EXPENDITURES
Current:

Public Safety - 177,780 177,776 4
Total Expenditures - 177,780 177,776 4

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES $ - - $ - - $
Fund Balance - Beginning of Year -
FUND BALANCE - END OF YEAR $ -

ATTACHMENT A

CITY OF STANTON

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

CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(142)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
REVENUES $ - - $ - $ - $

EXPENDITURES
Current:

Public Works 3,561,775 3,409,520 620,906 2,788,614
Capital Outlay 693,225 693,225 693,225 -
Total Expenditures 4,255,000 4,102,745 1,314,131 2,788,614

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,102,745) (4,255,000) (1,314,131) 2,788,614

OTHER FINANCING SOURCES
Transfers In 3,967,190 3,814,935 1,272,321 (2,542,614)
Total Other Financing Sources 3,967,190 3,814,935 1,272,321 (2,542,614) NET CHANGE IN FUND BALANCE $ (287,810) $ (287,810) (41,810) $ 246,000 Fund Balance - Beginning of Year 320,739
FUND BALANCE - END OF YEAR $ 278,929

ATTACHMENT A

CITY OF STANTON

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

PARK AND RECREATION FACILITIES CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
(143)
Variance from
Final Budget
Original Final Positive
Budget Budget Actual (Negative)

REVENUES
Charges for Services 930,000 $ 975,000 $ 1,464,911 $ 489,911 $ Interest Income 10,000 15,000 7,662 (7,338)
Total Revenues 940,000 990,000 1,472,573 482,573

EXPENDITURES
Current:

Culture and Recreation 46,000 89,000 7,150 81,850
Total Expenditures 46,000 89,000 7,150 81,850

EXCESS OF REVENUES
OVER EXPENDITURES 901,000 894,000 1,465,423 564,423

OTHER FINANCING USES
Transfers Out (585,000) (572,850) - 572,850
Total Other Financing Uses (585,000) (572,850) - 572,850 NET CHANGE IN FUND BALANCE $ 328,150 309,000 $ 1,465,423 1,137,273 $ Fund Balance - Beginning of Year 2,034,478
FUND BALANCE - END OF YEAR $ 3,499,901

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF INTERNAL REVENUE FUNDS
JUNE 30, 2021
(144)
Workers’ Compensation - To account for the City’s workers’ compensation insurance, including claims, legal, and other expenses.

Liability/Risk Management - To account for the City’s general liability insurance, including claims, legal, and other expenses.

Employee Benefits - To account for the employee benefits costs, including vacation, sick, and holiday hours.

Fleet Maintenance - To account for costs related to operations and fleet maintenance for the City’s vehicles.

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF NET POSITION

ALL INTERNAL SERVICE FUNDS
JUNE 30, 2021
(145)
Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Total
ASSETS
Current Assets:

Cash and Investments 578,222 $ 144,257 $ 323,775 $ 471,534 $ 1,517,788 $ Restricted Cash and Investments Held
in Pension Trust - 4,696,361 - 4,696,361 -
Receivables:

Accounts Receivable - - - 5,788 5,788
Interest 21 85 - 371 477
Prepaids - 2,250 - - 2,250
Due From Other Governments 241,062 12,574 44,290 297,926 - Total Assets 819,305 159,166 5,064,426 477,693 6,520,590 Noncurrent Assets:

Capital Assets, Being Depreciated, Net - - 278,868 - 278,868 Total Noncurrent Assets 819,305 159,166 5,064,426 756,561 6,799,458

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount From Pension Plan - 1,433,511 - 1,433,511 - Total Deferred Outflows of Resources - 1,433,511 - 1,433,511 -

LIABILITIES
Current Liabilities:

Accounts Payable 380 20,000 16,181 10 36,571
Unearned Revenue - - 561 561
Claims and Judgements Payable 10,000 54,550 - 64,550 -
Compensated Absences Payable - 132,970 - 1,095 134,065
Total Current Liabilities 10,380 74,550 149,712 1,105 235,747 Noncurrent Liabilities:

Claims and Judgements Payable 12,665 125,999 - 138,664 - Compensated Absences Payable - 148,188 - 148,188 -
Net Pension Liability - 6,631,148 - 6,631,148 -
Total Noncurrent Liabilities 12,665 125,999 6,779,336 6,918,000 - Total Liabilities 23,045 200,549 6,929,048 1,105 7,153,747

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts From Pension Plans - 740,519 - 740,519 - Total Deferred Inflows of Resources - 740,519 - 740,519 -

NET POSITION
Investment in Capital Assets - - 278,868 - 278,868
Unrestricted 796,260 (41,383) (1,171,630) 476,588 59,835 Total Net Position $ 796,260 $ (41,383) $ (1,171,630) $ 755,456 $ 338,703

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN NET POSITION

ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
(146)
Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Elimination Total

OPERATING REVENUES
Charges for Services $ 229,087 $ 276,243 $ 1,356,967 $ 64,135 $ - $ 1,926,432 Total Operating Revenues 229,087 276,243 1,356,967 64,135 - 1,926,432

OPERATING EXPENSES
Equipment Maintenance and Operation - - - 42,620 - 42,620 Depreciation - - - 81,567 - 81,567
Administrative and Personnel Services - - 2,317,389 21,750 - 2,339,139 Provision for Estimated Claims - 195,434 - - - 195,434
Insurance Premiums and Claims 60,436 223,689 - - - 284,125 Contractual Services - - 25,042 - - 25,042
Total Operating Expenses 60,436 419,123 2,342,431 145,937 - 2,967,927 OPERATING INCOME (LOSS) 168,651 (142,880) (985,464) (81,802) (1,041,495) -

NONOPERATING REVENUES
Interest Income 1,134 74 865,126 1,265 - 867,599
Gain on Sale of Capital Assets - - - 7,386 - 7,386
Total Nonoperating Revenues 1,134 74 865,126 8,651 - 874,985

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 169,785 (142,806) (120,338) (73,151) - (166,510)

TRANSFERS
Transfers In - - 102,000 - (102,000) -
Transfers Out (52,000) (50,000) - - 102,000 -
Total Transfers (52,000) (50,000) 102,000 - - -

CAPITAL CONTRIBUTIONS
Capital Contributions from
Governmental Activities - - - 360,436 - 360,436
CHANGES IN NET POSITION 117,785 (192,806) (18,338) 287,285 - 193,926 Net Position - Beginning of Year 678,475 151,423 (1,153,292) 468,171 - 144,777 NET POSITION - END OF YEAR $ 796,260 $ (41,383) $ (1,171,630) $ 755,456 $ - $ 338,703

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF CASH FLOWS

ALL INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
(147)
Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Elimination Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received From Customers $ 231,586 $ 277,788 $ 1,312,677 $ 61,622 $ - $ 1,883,673 Cash Paid to Other Suppliers of Goods or Services (70,018) (254,748) (5,699) (53,508) - (383,973) Cash Paid to Employees for Salaries, Wages, and Benefits - - (1,370,763) (22,411) - (1,393,174) Net Cash Provided (Used) by
Operating Activities 161,568 23,040 (63,785) (14,297) - 106,526

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Cash Received From Other Funds - - 102,000 - (102,000) - Cash Transfer to Other Funds (52,000) (50,000) - - 102,000 - Net Cash Provided (Used) by Noncapital
Financing Activities (52,000) (50,000) 102,000 - - -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Proceeds From Sale of Capital Assets - - - 7,386 - 7,386 Net Cash Provided by Capital and Related
Financing Activities - - - 7,386 - 7,386

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Income Received 2,500 399 865,807 2,232 - 870,938 Net Cash Provided by Investing Activities 2,500 399 865,807 2,232 - 870,938

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 112,068 (26,561) 904,022 (4,679) - 984,850 Cash and Cash Equivalents - Beginning of the Year 466,154 170,818 4,116,114 476,213 - 5,229,299 CASH AND CASH EQUIVALENTS - END OF YEAR $ 578,222 $ 144,257 $ 5,020,136 $ 471,534 $ - $ 6,214,149

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES
Operating Income (Loss) $ 168,651 $ (142,880) $ (985,464) $ (81,802) $ - $ (1,041,495) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation Expense - - - 81,567 - 81,567
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable - - - (2,513) - (2,513) (Increase) Decrease in Prepaid Expenses - (2,250) 3,980 - - 1,730 (Increase) Decrease in Due From Other Governments 2,499 1,545 (44,290) - - (40,246) (Increase) Decrease in Deferred Outflows of Resources
from Pension Plans - - 3,597 - - 3,597
Increase (Decrease) in Accounts Payable - 20,000 14,803 (10,888) - 23,915 Increase (Decrease) in Accrued Liabilities 380 - - (747) - (367) Increase (Decrease) in Unearned Revenue - - 561 - - 561 Increase (Decrease) in Claims and Judgments Payable (9,962) 146,625 - - - 136,663 Increase (Decrease) in Compensated Absences Payable - - 20,499 86 - 20,585 Increase (Decrease) in Net Pension Liability - - 760,459 - - 760,459 Increase (Decrease) in Deferred Inflows of Resources
from Pension Plans - - 162,070 - - 162,070
Net Cash Provided (Used) by
Operating Activities $ 161,568 $ 23,040 $ (63,785) $ (14,297) $ - $ 106,526 NONCASH NONCAPITAL FINANCING ACTIVITIES:

Net Transfer of Capital Assets from Governmental Activities to Fleet Maintenance Fund that Maintains the Asset $ - $ - $ - $ 360,436 $ - $ 360,436

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION:

Cash and Investments $ 578,222 $ 144,257 $ 323,775 $ 471,534 $ - $ 1,517,788 Restricted Cash and Investments Held in Pension Trust - - 4,696,361 - - 4,696,361 Total Cash and Cash Equivalents $ 578,222 $ 144,257 $ 5,020,136 $ 471,534 $ - $ 6,214,149

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2021
(148)
Successor Agency to the Stanton Redevelopment Agency - To account for the receipt of property tax revenues pursuant to the Dissolution Act and the value of assets transferred from the Former Redevelopment Agency. The fund accounts for the expenses incurred during the reporting year pursuant to the Recognized Obligation Payment Schedules (ROPS) approved by the State Department of Finance under the Dissolution Act (Assembly Bill 26 - Section 34177).

North Orange County Public Safety Task Force Fund (NOCPTF) - To account for activities with other governmental agencies related to the North Orange County Public Safety Task Force to address youth violence prevention and intervention in K-12 schools, promote and enhance successful re-entry of offenders into the community, and address homeless outreach and intervention efforts.

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2021
(149)
Successor
Agency
to the Stanton
Redevelopment
Agency NOCPTF
Private-Purpose Private-Purpose
Trust Fund Trust Fund Total
ASSETS
Current Assets:

Cash and Investments 4,174,608 $ 445,784 $ 4,620,392 $
Due from Other Governments - 55,180 55,180
Restricted Assets:

Cash Held by Fiscal Agent 1,112,539 - 1,112,539
Total Assets 5,287,147 500,964 5,788,111

DEFERRED OUTFLOW OF RESOURCES
Deferred Amount on Refunding 8,148,616 - 8,148,616
Total Deferred Outflow of Resources 8,148,616 - 8,148,616

LIABILITIES
Current Liabilities:

Accounts Payable - 414,878 414,878
Interest Payable 175,920 - 175,920
Bonds Payable - Current Portion 2,490,000 - 2,490,000
Total Current Liabilities 2,665,920 414,878 3,080,798
Long-Term Liabilities:

Bonds Payable 55,607,496 - 55,607,496
Total Long-Term Liabilities 55,607,496 - 55,607,496
Total Liabilities 58,273,416 414,878 58,688,294

NET POSITION
Restricted for Private Purposes $ (44,837,653) $ 86,086 $ (44,751,567)

ATTACHMENT A

CITY OF STANTON

COMBINING STATEMENT OF CHANGES IN NET POSITION

ALL PRIVATE-PURPOSE TRUST FUNDS
YEAR ENDED JUNE 30, 2021
(150)
Successor
Agency
to the Stanton
Redevelopment
Agency NOCPTF
Private-Purpose Private-Purpose
Trust Fund Trust Fund Total

ADDITIONS
Taxes $ 5,076,010 $ - $ 5,076,010
Intergovernmental - 4,583,433 4,583,433
Investment Income 1,902 - 1,902
Total Additions 5,077,912 4,583,433 9,661,345

DEDUCTIONS
Contractual Services 62,452 - 62,452
Public Safety - 4,802,165 4,802,165
Interest and Fiscal Charges 2,682,990 - 2,682,990
Total Deductions 2,745,442 4,802,165 7,547,607
CHANGE IN NET POSITION 2,332,470 (218,732) 2,113,738
Net Position - Beginning of Year (47,170,123) 304,818 (46,865,305) NET POSITION - END OF YEAR $ 86,086 (44,837,653) $ $ (44,751,567)

ATTACHMENT A

CITY OF STANTON

STATISTICAL SECTION (UNAUDITED)
JUNE 30, 2021
(151)
This section of the City of Stanton’s Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. The statistical information presented herein is un-audited.

Contents
Page
Financial Trends - These schedules contain information to help the reader to understand how the City's financial performance and well-being have changed over time. 1 Net Position by Component 152
2 Changes in Net Position 154
3 Fund Balances of Governmental Funds 158
4 Changes in Fund Balances - Governmental Funds 160
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant own-source revenue.
6 Assessed Value and Estimated Actual Value of Taxable Property 162 7 Direct and Overlapping Property Tax Rates 164
8 Principal Property Tax Payers 166
9 Property Tax Levies and Collections 167
Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
10 Ratios of Outstanding Debt by Type 168
11 Direct and Overlapping Debt 169
12 Legal Debt Margin Information 170
13 Pledged - Revenue Coverage 172
Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
14 Demographic and Economic Statistics 174
15 Principal Employers 175
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 16 Full-Time Equivalent Employees by Function 176
17 Operating Indicators by Functions 178
18 Capital Asset Statistics by Function 184

ATTACHMENT A

CITY OF STANTON

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(152)
2011-12 2012-13 2013-14 2014-15 2015-16
Governmental Activities:

Investment in Capital Assets $ 93,573,202 $ 92,494,864 $ 87,225,759 $ 79,209,329 $ 88,342,750 Restricted 18,909,154 20,919,037 22,114,070 20,219,980 19,166,303 Unrestricted 25,969,301 22,506,002 22,726,068 14,875,639 15,861,417 Total Governmental
Activities Net Position $ 138,451,657 $ 135,919,903 $ 132,065,897 $ 114,304,948 $ 123,370,470 Business-Type Activities:

Investment in Capital Assets $ 5,506,126 $ 5,371,857 $ 5,238,330 $ 5,135,853 $ 5,003,312 Unrestricted 1,560,732 1,816,176 2,308,704 2,604,629 3,216,884 Total Business-Type
Activities Net Position $ 7,066,858 $ 7,188,033 $ 7,547,034 $ 7,740,482 $ 8,220,196 Primary Government:

Investment in Capital Assets $ 99,079,328 $ 97,866,721 $ 92,464,089 $ 84,345,182 $ 93,346,062 Restricted 18,909,154 20,919,037 22,114,070 20,219,980 19,166,303 Unrestricted 27,530,033 24,322,178 25,034,772 17,480,268 19,078,301 Total Primary
Government Net Position $ 145,518,515 $ 143,107,936 $ 139,612,931 $ 122,045,430 $ 131,590,666 Fiscal Year

ATTACHMENT A

CITY OF STANTON

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2016-17 2017-18 2018-19 2019-20* 2020-21
Governmental Activities:

Investment in Capital Assets $ 87,079,003 $ 88,374,103 $ 88,077,568 $ 96,374,328 $ 92,106,906 Restricted 23,062,147 27,536,678 28,086,476 22,693,282 21,411,322 Unrestricted 12,719,777 13,014,515 17,774,619 21,403,422 25,179,797 Total Governmental
Activities Net Position $ 122,860,927 $ 128,925,296 $ 133,938,663 $ 140,471,032 $ 138,698,025 Business-Type Activities:

Investment in Capital Assets $ 4,877,897 $ 5,250,434 $ 5,107,553 $ 4,964,679 $ 4,970,607 Unrestricted 3,666,352 3,595,542 4,064,319 4,398,961 5,193,357 Total Business-Type
Activities Net Position $ 8,544,249 $ 8,845,976 $ 9,171,872 $ 9,363,640 $ 10,163,964 Primary Government:

Investment in Capital Assets $ 91,956,900 $ 93,624,537 $ 93,185,121 $ 101,339,007 $ 97,077,513 Restricted 23,062,147 27,536,678 28,086,476 22,693,282 21,411,322 Unrestricted 16,386,129 16,610,057 21,838,938 25,802,383 30,373,154 Total Primary
Government Net Position $ 131,405,176 $ 137,771,272 $ 143,110,535 $ 149,834,672 $ 148,861,989 Fiscal Year

ATTACHMENT A

CITY OF STANTON
CHANGES IN NET POSITION – EXPENSES AND PROGRAM REVENUES

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2011-12* 2012-13* 2013-14* 2014-15* 2015-16*
Expenses:

Governmental Activities:

General Government $ 2,277,269 $ 2,852,594 $ 2,976,011 $ 3,043,005 $ 3,468,099 Public Safety 12,494,004 11,425,129 12,390,690 13,460,725 15,831,683 Community Development 3,766,930 2,032,838 1,818,001 1,709,355 1,747,416 Health and Welfare 2,132 2,826 4,265 3,476 3,512
Public Works 2,557,660 2,895,834 2,358,073 1,762,185 1,235,617 Culture and Recreation 1,731,743 1,410,745 1,198,807 1,162,126 1,592,769 Interest and Fiscal Charges 3,378,862 - - - -
Transfer of Land to
Successor Agency - 10,192,858 - - -
Total Governmental
Activities Expenses 26,208,600 20,619,966 30,938,705 21,140,872 23,879,096 Business-Type Activities:

Sewer 866,822 883,725 862,865 839,850 643,739
Total Business-Type
Activities Expenses 866,822 883,725 862,865 839,850 643,739 Total Primary Government
Expenses 27,075,422 21,503,691 31,801,570 21,980,722 24,522,835 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 119,455 70,950 433,374 458,286 488,128 Public Safety 904,419 895,826 882,480 896,383 913,203
Community Development 959,624 1,009,732 1,240,666 1,254,023 1,198,820 Public Works 19,560 - 14,966 11,608 10,032
Culture and Recreation 141,360 109,456 448,528 417,748 357,585 Operating Grants and
Contributions 2,510,694 2,760,472 2,960,253 3,058,470 2,961,296 Capital Grants and
Contributions - - 316,226 294,210 2,350,764
Total Governmental
Activities Program
Revenues 4,655,112 4,846,436 6,296,493 6,390,728 8,279,828 Business-Type Activities:

Charges for Services:

Sewer 688,820 848,369 1,108,357 1,075,714 1,016,363
Total Business-Type
Activities Program
Revenues 688,820 848,369 1,108,357 1,075,714 1,016,363
Total Primary Government
Program Revenues 5,343,932 5,694,805 7,404,850 7,466,442 9,296,191 Note:
* Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

Source: City Finance Department
Fiscal Year

ATTACHMENT A

CITY OF STANTON
CHANGES IN NET POSITION – EXPENSES AND PROGRAM REVENUES (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(155)
2016-17* 2017-18* 2018-19* 2019-20* 2020-21
Expenses:

Governmental Activities:

General Government $ 3,726,949 $ 3,135,756 $ 1,666,776 $ 3,739,756 $ 4,848,332 Public Safety 16,162,642 17,294,863 21,730,025 18,712,309 21,046,456 Community Development 2,083,114 4,746,591 1,235,126 3,000,334 3,696,528 Health and Welfare 67,305 37,250 16,795 - -
Public Works 1,598,743 1,870,833 1,299,051 2,404,139 4,652,371 Culture and Recreation 2,030,052 1,933,953 1,181,246 2,120,218 2,301,778 Interest and Fiscal Charges - - - 24,223 25,823
Transfer of Land to -
Successor Agency - - - - -
Total Governmental
Activities Expenses 25,668,805 29,019,246 27,129,019 30,000,979 36,571,288 Business-Type Activities:

Sewer 737,939 926,631 1,152,003 1,436,274 1,531,447
Total Business-Type
Activities Expenses 737,939 926,631 1,152,003 1,436,274 1,531,447 Total Primary Government
Expenses 26,406,744 29,945,877 28,281,022 31,437,253 38,102,735 Program Revenues:

Governmental Activities:

Charges for Services:

General Government 527,561 345,485 487,870 359,865 85,717 Public Safety 1,375,973 1,751,036 1,754,200 1,899,756 2,088,690 Commuity Development 1,244,909 2,116,525 3,283,119 3,908,877 5,107,540 Public Works - 47,389 48,076 59,849 68,258
Culture and Recreation 95,746 571,210 550,144 1,428,477 1,565,463 Operating Grants and
Contributions 2,876,853 3,383,242 3,586,655 4,655,790 5,697,844 Capital Grants and
Contributions - 1,353,727 - 3,423,482 35,081
Total Governmental
Activities Program
Revenues 6,121,042 9,568,614 9,710,064 15,736,096 14,648,593 Business-Type Activities:

Charges for Services:

Sewer 935,798 1,052,745 1,267,440 1,305,410 2,235,352
Total Business-Type
Activities Program
Revenues 935,798 1,052,745 1,267,440 1,305,410 2,235,352 Total Primary Government
Program Revenues 7,056,840 10,621,359 10,977,504 17,041,506 16,883,945 Fiscal Year

ATTACHMENT A

CITY OF STANTON
CHANGES IN NET POSITION – EXPENSES AND PROGRAM REVENUES (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(156)
2011-12 2012-13 2013-14 2014-15 2015-16
Net Revenues (Expenses)
Governmental Activities $ (21,553,488) $ (15,773,530) $ (24,642,212) $ (14,750,144) $ (15,599,268) Business Activities (178,002) (35,356) 245,492 235,864 372,624 Total Net Revenues
(Expenses) (21,731,490) (15,808,886) (24,396,720) (14,514,280) (15,226,644) General Revenues and Other
Changes in Net Position:

Governmental Activities:

Taxes:

Property Taxes $ 8,070,432 $ 5,307,800 $ 5,613,269 $ 5,314,329 $ 5,507,417 Sales Taxes 3,579,392 3,683,199 3,925,839 4,012,917 4,169,215 Transactions and Use
Taxes - - - 792,300 3,591,594
Transient Occupancy
Taxes 357,092 341,838 323,938 375,876 437,676
Franchise Taxes 932,916 996,947 1,031,034 964,450 1,011,630 Utility Users Taxes 2,083,748 2,110,373 2,189,068 2,177,807 2,015,948 Other Taxes 3,311,436 413,750 308,544 413,999 487,593
Investment Earnings,
Unrestricted 435,891 111,367 199,807 132,205 227,705
Miscellaneous 553,650 719,734 744,002 725,215 714,613
Gain on Sale of Capital
Assets - - - 475,282 -
Transfers - - - - -
Extraordinary Item (1) 50,525,933 (443,232) - - 6,501,399 Special Item (2) - - - (3,393,141) -
Total Governmental
Activities 69,850,490 13,241,776 14,335,501 11,991,239 24,664,790 Business-Type Activities:

Taxes:

Property Taxes 41,784 148,107 105,749 90,282 90,532
Investment Earnings 13,729 8,424 7,760 10,430 16,558
Transfers - - - - -
Miscellaneous 27,995 - - - -
Total Business-Type
Activities 83,508 156,531 113,509 100,712 107,090
Total Primary Government 69,933,998 13,398,307 14,449,010 12,091,951 24,771,880 Changes in Net Position:

Governmental Activities 48,297,002 (2,531,754) (10,306,711) (2,758,905) 9,065,522 Business-Type Activities (94,494) 121,175 359,001 336,576 479,714 Total Primary Government 48,202,508 $ (2,410,579) $ (9,947,710) $ (2,422,329) $ 9,545,236 $ Notes:
(1) FY 15/16 extraordinary gain relates to payment of bond proceeds to the City from the Successor Agency for building Stanton Central Park.
(2) FY 18/19 special item relates to reinstatement of a General Fund loan to the Successor Agency; FY 14/15 special item relates to write-down of land held for resale by Housing Authority to net realizable value. * Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

Source: City Finance Department
Fiscal Year

ATTACHMENT A

CITY OF STANTON
CHANGES IN NET POSITION – EXPENSES AND PROGRAM REVENUES (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(157)
2016-17 2017-18 2018-19* 2019-20 2020-21
Net Revenues (Expenses)
Governmental Activities $ (19,547,763) $ (19,450,632) $ (17,418,955) $ (14,264,883) $ (21,922,695) Business Activities 197,859 126,114 115,437 (130,864) 703,905 Total Net Revenues
(Expenses) (19,349,904) (19,324,518) (17,303,518) (14,395,747) (21,218,790) General Revenues and Other
Changes in Net Position:

Governmental Activities:

Taxes:

Property Taxes $ 5,435,415 $ 6,071,733 $ 6,433,535 $ 6,816,387 $ 7,561,831 Sales Taxes 4,152,378 4,204,519 4,327,842 4,278,141 4,682,029 Transactions and Use
Taxes 4,105,593 4,122,756 4,057,037 4,537,734 4,991,100 Transient Occupancy
Taxes 512,550 514,102 483,233 512,492 569,293
Franchise Taxes 992,798 1,088,226 1,026,619 1,055,791 1,105,276 Utility Users Taxes 1,980,854 1,986,236 1,850,880 1,791,516 1,990,690 Other Taxes 461,745 524,570 433,541 364,751 345,315
Investment Earnings,
Unrestricted 119,772 135,059 1,325,735 1,167,877 959,781 Miscellaneous 1,277,115 649,678 413,900 272,563 95,045
Gain on Sale of Capital
Assets - 6,000,100 - - -
Transfers - - - - 81,616
Extraordinary Item (1) - - - - -
Special Item (2) - - 2,080,000 - -
Total Governmental
Activities 19,038,220 25,296,979 22,432,322 20,797,252 22,381,976 Business-Type Activities:

Taxes:

Property Taxes 99,852 124,950 131,641 147,159 165,692
Investment Earnings 26,342 50,663 78,818 167,573 12,343 Transfers - - - - (81,616)
Miscellaneous - - - 7,900 -
Total Business-Type
Activities 126,194 175,613 210,459 322,632 96,419
Total Primary Government 19,164,414 25,472,592 22,642,781 21,119,884 22,478,395 Changes in Net Position:

Governmental Activities (509,543) 5,846,347 5,013,367 6,532,369 459,281 Business-Type Activities 324,053 301,727 325,896 191,768 800,324 Total Primary Government (185,490) $ 6,148,074 $ 5,339,263 $ 6,724,137 $ 1,259,605 $ Fiscal Year

ATTACHMENT A

CITY OF STANTON

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(158)
2011-12* 2012-13* 2013-14* 2014-15* 2015-16*
General Fund:

Nonspendable $ 2,247,340 $ 8,971,880 $ 8,379,173 $ 6,730,051 $ 5,398,081 Restricted - - - - -
Committed 3,911,481 3,720,465 3,965,209 4,317,883 4,677,019 Assigned 50,193 31,772 38,751 - 7,200
Unassigned 14,413,187 6,313,207 8,181,723 9,391,105 11,811,587 Total General Fund $ 20,622,201 $ 19,037,324 $ 20,564,856 $ 20,439,039 $ 21,893,887 All Other Governmental Funds:

Nonspendable $ 9,022,935 $ 10,065,582 $ - $ - $ -
Restricted 9,886,219 10,514,621 22,118,786 20,232,644 19,166,303 Committed 510,721 - - - -
Assigned 1,616,912 1,451,877 683,276 756,521 790,528
Unassigned (54,284) (392,307) (51,385) (526,651) (790,292) Total All Other
Governmental Funds $ 20,982,503 $ 21,639,773 $ 22,750,677 $ 20,462,514 $ 19,166,539 Note:
* Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

Source: City Finance Department
Fiscal Year

ATTACHMENT A

CITY OF STANTON

FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(ACCRUAL BASIS OF ACCOUNTING)
(159)
2016-17* 2017-18* 2018-19* 2019-20 2020-21
General Fund:

Nonspendable $ 3,992,852 $ 1,387,690 $ 1,806,958 $ 146,069 $ 2,488,780 Restricted 3,065,186 3,501,556 3,735,741 - -
Committed 11,150,000 12,022,695 13,261,735 10,074,410 8,661,735 Assigned - - - 123,935 356,687
Unassigned 4,566,919 5,895,617 3,509,177 10,277,670 12,691,577 Total General Fund $ 22,774,957 $ 22,807,558 $ 22,313,611 $ 20,622,084 $ 24,198,779 All Other Governmental Funds:

Nonspendable $ - $ - $ - $ - $ -
Restricted 19,996,961 24,035,122 24,350,735 22,636,555 21,212,537 Committed - - - - -
Assigned 682,470 908,996 1,117,693 320,739 278,929
Unassigned (303,957) (27,464) (29,247) (41,723) -
Total All Other
Governmental Funds $ 20,375,474 $ 24,916,654 $ 25,439,181 $ 22,915,571 $ 21,491,466 Fiscal Year

ATTACHMENT A

CITY OF STANTON

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(160)
2011-12* 2012-13* 2013-14* 2014-15* 2015-16*
Revenues:

Taxes and Assessments $ 15,247,661 $ 13,469,674 $ 14,062,751 $ 14,730,740 $ 17,838,271 Licenses and Permits 865,687 917,431 419,298 417,780 357,381 Intergovernmental 5,684,978 2,843,557 2,765,837 1,916,432 4,844,423 Charges for Services* 245,904 206,303 2,363,378 2,349,520 2,361,663 Fines and Forfeitures 329,492 320,222 279,542 292,505 296,607 Interest Income 428,230 272,502 202,857 195,526 227,707 Rental Income 497,439 700,878 700,811 706,265 619,977
Gain on Sale of Land Held
for Resale - - - - -
Miscellaneous 198,047 113,528 55,883 17,955 71,754
Contribution From Successor
Agency - - - - -
Total Revenues 23,497,438 18,844,095 20,850,357 20,626,723 26,617,783 Expenditures:

Current:

General Government 1,444,457 2,189,685 2,461,666 2,615,927 2,900,169 Public Safety 12,516,221 10,983,189 12,047,794 13,176,004 15,453,062 Community Development 3,211,789 1,590,898 1,475,104 1,424,634 1,368,795 Highways and Streets 2,141,304 2,564,379 2,098,897 1,548,644 951,650 Culture and Recreation 1,315,387 1,079,290 921,302 948,585 1,331,178 Health and Welfare 2,132 2,826 4,265 3,476 3,512
Capital Outlay 9,073,926 918,203 475,187 1,131,626 10,951,943 Debt Service:

Bond Issuance Costs - - - - -
Principal 680,000 - - - -
Interest and Fiscal Charges 2,935,018 - - - -
Total Expenditures 33,320,234 19,328,470 19,484,215 20,848,896 32,960,309 Excess (Deficiency) of Revenues
Over (Under) Expenditures (9,822,796) (484,375) 1,366,142 (222,173) (6,342,526) Other Financing Sources (Uses):

Proceeds From Long-Term Debt - - - - -
Transfers In 11,781,909 710,030 1,884,218 624,942 599,348 Transfers Out (11,781,909) (710,030) (611,924) (824,942) (599,348) Total Other Financing
Sources (Uses) - - 1,272,294 (200,000) -
Net Change in Fund Balance
Before Special/Extraordinary
Item (9,822,796) (484,375) 2,638,436 (422,173) (6,342,526) Special/Extraordinary Item (1) (443,232) (24,257,141) - (2,082,812) 6,501,399 Net Change in Fund Balances (34,079,937) $ (927,607) $ 2,638,436 $ (2,504,985) $ 158,873 $ Debt Service as a Percentage of
Noncapital Expenditures 14.9% 0% 0% 0% 0%
Notes:
* Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.
(1) Reinstatement of advance to Successor Agency
Source: City Finance Department
Fiscal Year

ATTACHMENT A

CITY OF STANTON

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(161)
2016-17* 2017-18* 2018-19* 2019-20* 2020-21*
Revenues:

Taxes and Assessments $ 18,697,469 $ 19,821,063 $ 20,541,371 $ 21,167,374 $ 23,160,509 Licenses and Permits 321,935 664,964 714,474 1,132,116 2,091,517 Intergovernmental 2,772,489 2,691,518 1,815,443 3,462,782 3,992,601 Charges for Services* 2,190,769 3,182,541 3,438,846 4,444,656 5,015,265 Fines and Forfeitures 360,662 460,794 410,443 411,644 524,705 Interest Income 119,771 116,130 2,026,619 1,565,134 151,183 Rental Income 605,377 589,631 624,406 637,676 579,024
Gain on Sale of Land Held
for Resale - 6,000,100 - - -
Miscellaneous 684,711 70,083 286,946 211,217 96,605
Contribution From Successor
Agency - - - 3,377,369 -
Total Revenues 25,753,183 33,596,824 29,858,548 36,409,968 35,611,409 Expenditures:

Current:

General Government 2,879,492 2,535,059 2,605,958 2,706,193 4,367,607 Public Safety 15,597,673 16,894,400 22,350,545 18,023,261 20,682,528 Community Development 1,518,145 4,346,128 1,855,646 2,303,811 3,168,880 Highways and Streets 1,175,017 1,570,486 1,714,628 1,477,485 1,835,882 Culture and Recreation 1,606,326 1,760,921 1,646,637 1,603,432 1,721,498 Health and Welfare 67,305 37,250 16,795 - -
Capital Outlay 819,220 1,878,799 1,719,759 11,829,522 882,099 Debt Service:

Bond Issuance Costs - - - - -
Principal - - - 55,754 1,069,246
Interest and Fiscal Charges - - - 14,906 35,140
Total Expenditures 23,663,178 29,023,043 31,909,968 38,014,364 33,762,880 Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,090,005 4,573,781 (2,051,420) (1,604,396) 1,848,529 Other Financing Sources (Uses):

Proceeds From Long-Term Debt - - - 1,125,000 210,100
Transfers In 633,550 828,000 757,400 604,623 1,955,277
Transfers Out (633,550) (828,000) (757,400) (4,340,364) (1,873,661) Total Other Financing
Sources (Uses) - - (2,610,741) - 291,716
Net Change in Fund Balance
Before Special/Extraordinary
Item 2,090,005 4,573,781 (2,051,420) (4,215,137) 2,140,245 Special/Extraordinary Item (1) - - 2,080,000 - -
Net Change in Fund Balances 2,090,005 $ 4,573,781 $ 28,580 $ (4,215,137) $ 2,140,245 $ Debt Service as a Percentage of
Noncapital Expenditures 0% 0% 0% 0.2% 0.0%
Fiscal Year

ATTACHMENT A

CITY OF STANTON

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(AMOUNTS EXPRESSED IN THOUSANDS)
(162)
Fiscal Year Taxable Taxable
Ended SBE Assessed Assessed
June 30 Secured Unsecured Nonunitary Value (1) Secured Unsecured Value 2012 1,980,529 $ $ 82,103 $ 661 $ 2,063,293 $ 1,956,093 $ 81,961 $ 2,038,054 2013 2,000,075 72,992 684 2,073,751 1,975,423 72,869 2,048,292 2014 2,071,296 74,078 684 2,146,058 2,039,488 72,219 2,111,707 2015 2,214,413 83,904 684 2,299,001 2,179,143 83,691 2,262,834 2016 2,350,787 81,734 684 2,433,205 2,309,529 82,056 2,391,585 2017 2,479,654 85,974 684 2,566,312 1,569,439 20,147 1,589,586 2018 2,602,487 75,735 684 2,678,906 1,677,650 7,246 1,684,896 2019 2,747,552 85,798 1,255 2,834,605 1,816,986 17,805 1,834,791 2020 2,921,963 91,619 1,255 3,014,837 1,988,330 23,148 2,011,478 2021 3,094,828 90,155 109,371 3,294,354 2,266,923 29,439 2,296,362 Notes:

In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of the property may be increased by an inflation factor (limited to a maximum of 2%). With few exceptions, property is only reassessed at the time it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. (1) City amounts include the Redevelopment Agency assessed values. (2) The State of California dissolved Redevelopment Agencies effective January 31, 2012.

Sources: Orange County Auditor-Controller
HdL, Coren & Cone
City Redevelopment Agency (2)

ATTACHMENT A

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ATTACHMENT A

CITY OF STANTON

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(RATE PER $100 OF ASSESSED VALUE)
(164)
2011-12 2012-13 2013-14 2014-15 2015-16
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000
Overlapping Rates (2):

Anaheim Union High School
District 0.02678 0.02858 0.02620 0.02412 0.04948
Coast Community College
District 0.01754 0.01881 0.02899 0.03015 0.03092
Garden Grove Unified School
District 0.02483 0.03135 0.03703 0.04148 0.04656
Magnolia Elementary School
District 0.02326 0.02493 0.02737 0.02497 0.02349
Metropolitan Water District 0.00370 0.00350 0.00350 0.00350 0.00350 North Orange County
Community College District 0.01742 0.01902 0.01704 0.01758 0.03043 Savanna School District 0.02767 0.05976 0.05557 0.05443 0.05501 Total Direct and
Overlapping Tax Rates 1.14120 1.18595 1.19570 1.19623 1.23939 City's Share of 1% Levy Per
Prop 13 (3) 0.10940 0.10940 0.10940 0.10940 0.10940
Redevelopment Rate (4) 1.00370 0.00000 0.00000 0.00000 0.00000 Total Direct Rate (5) 0.58707 0.58962 0.13707 0.13703 0.13701 Notes:
(1) In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides within.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners. (3) The City's share of the 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's levy has been subtracted where known. (4) The Redevelopment Rate is based on the largest RDA tax rate area and only includes rates(s)from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only in incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013-14, the Total Direct Rate no longer includes revenues derived from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to City/Agency in the same proportions as general fund revenue.

Source: HdL, Coren & Cone
Fiscal Year

ATTACHMENT A

CITY OF STANTON

DIRECT AND OVERLAPPING PROPERTY TAX RATES (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(RATE PER $100 OF ASSESSED VALUE)
(165)
2016-17 2017-18 2018-19 2019-20 2020-21
Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000
Overlapping Rates (2):

Anaheim Union High School
District 0.04259 0.02211 0.04244 0.03968 0.03971
Coast Community College
District 0.03116 0.03145 0.03052 0.03100 0.03181
Garden Grove Unified School
District 0.04487 0.07454 0.06848 0.06922 0.06956
Magnolia Elementary School
District 0.02552 0.02849 0.02859 0.02722 0.02714
Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 North Orange County
Community College District 0.02885 0.02927 0.02829 0.02409 0.03198 Savanna School District 0.05948 0.06115 0.06086 0.06132 0.06481 Total Direct and
Overlapping Tax Rates 1.23597 1.25051 1.26268 1.25603 1.26851 City's Share of 1% Levy Per
Prop 13 (3) 0.10940 0.13645 0.13645 0.13645 0.01365
Redevelopment Rate (4) 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate (5) 0.13698 0.13695 0.13994 0.13991 0.14007 Fiscal Year

ATTACHMENT A

CITY OF STANTON

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
YEAR ENDED JUNE 30, 2021
(166)
Percentage Percentage
of Total City of Total City
Taxable Taxable Secured Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Stanton Energy Reliability Center LLC 108,116,942 $ 1 1.76% $ - - - CR&R, Inc. 54,862,061 2 1.46% 46,536,771 1 2.26%
Briarwood Square LP 44,835,840 3 1.00% - - -
Arrowhead Apt. Investment LLC 30,614,463 4 0.76% 19,646,832 3 0.95% 12131 Beach Boulevard Owner LLC 23,009,160 5 0.70% - - - Brookfield Village Way LLC 22,374,410 6 0.65% - - -
Garden Terrace MHC LLC 21,431,500 7 - - -
Stanton Capital LP 20,024,994 8 0.63% - - -
Icon Owner Pool 1 LA Business Parks LLC 19,244,619 9 0.61% - - - Continental Gardens LP 18,615,680 10 0.53% 15,890,817 5 0.77% CP Briarwood LLC - - 0.48% 27,396,790 2 1.33%
Walton CWCA Hoover 52 LLC - - 18,703,927.0 - 4 0.91%
Faircrest, Inc. - - 12,352,013.0 - 6 0.60%
Mideb Nominees, Inc. - - 12,125,010.0 - 7 0.59%
Shapell Commercial and Industrial - - 11,933,707.0 - 8 0.58% Gilbert R. Shuman Trust (Plaza on the Blvd) - - 11,096,263.0 - 9 0.54% Katella 111 Partners LLC - - 10,090,114.0 - 10 0.49%
Total Top 10 Taxpayers $ 363,129,669 8.57% 185,772,244 $ 9.02% 2020-21 2011-12
Assessed Valuation Assessed Valuation

ATTACHMENT A

CITY OF STANTON

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(167)
Fiscal Total Collected Percent
Year Tax Levy Amount of Levy (1)
2012 $ 1,000,828 $ 1,000,828 100%
2013 1,011,984 1,011,984 100%
2014 1,014,799 1,014,799 100%
2015 1,028,726 1,028,726 100%
2016 1,039,132 1,039,132 100%
2017 1,040,976 1,040,976 100%
2018 1,061,452 1,061,452 100%
2019 1,070,983 1,070,983 100%
2020 1,075,724 1,075,724 100%
2021 1,079,894 1,079,894 100%
Note:
(1) Beginning with FY 1994-95, the City of Stanton elected the Teeter Plan for property tax distribution in which the City receives the entire secured levy in the current fiscal year, whether paid or not and the County retains the penalties and interest on delinquent taxes.

ATTACHMENT A

CITY OF STANTON

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(168)
Tax Total % of
Fiscal Allocation Capital Primary Personal Per
Year Bonds (1) Lease Government Income (2) Capita (2)
2011-12 $ - $ - $ 0.00% - $ -
2012-13 - - 0.00% - -
2013-14 - - 0.00% - -
2014-15 - - 0.00% - -
2015-16 - - 0.00% - -
2016-17 - - 0.00% - -
2017-18 - - 0.00% - -
2018-19 - - 0.00% - -
2019-20 1,069,246 - 1,069,246 0.00% -
2020-21 - - 0.00% - -
Notes:

Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. (1) The Stanton Redevelopment Agency was dissolved on February 1, 2012. As a result, the tax allocation bonds are not debt of the primary government.
(2) Refer to the Schedule of Demographic and Economic Statistics for personal income and population data.

ATTACHMENT A

CITY OF STANTON

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
YEAR ENDED JUNE 30, 2021
(169)
2020-21 Assessed Valuation $ 3,303,024,101
Total Debt % City's Share of
6/30/21 Applicable (1) Debt 6/30/21
Overlapping Tax and Assessment Debt:

Metropolitan Water District 26,830,000 $ 0.100% 26,830 $ Coast Community College District 886,289,825 0.475% 4,209,877 North Orange County Joint Community College District 245,604,001 1.759% 4,320,174 Anaheim Union High School District 266,058,955 3.291% 8,756,000 Garden Grove Unified School District 463,236,550 5.583% 25,862,497 Savanna School District 20,183,305 16.802% 3,391,199
Magnolia School District 40,732,918 32.410% 13,201,539
Total Overlapping Tax and Assessment Debt $ 59,768,116
Direct and Overlapping General Fund Debt:

Orange County General Fund Obligations 381,885,000 $ 0.504% 1,924,700 $ Orange County Pension Obligations 485,318,204 0.504% 2,446,004 Orange County Board of Education Certificates
of Participation 12,310,000 0.504% 62,042
Coast Community College District General Fund
Obligations 2,240,000 0.475% 10,640
Coast Community College District Pension Obligation
Bonds 0.475% 10,830 2,280,000
Anaheim Union High School District Certificates
of Participation 31,605,000 3.291% 1,040,121
Magnolia School District Certificates of Participation 13,490,397 16.802% 2,266,657 North Orange County Regional Occupation Program
Certificates of Participation 8,590,000 1.164% 99,988
City of Stanton Capital Lease Obligations 955,512 100.000% 955,512 Total Direct and Overlapping General Fund Debt 8,816,494 $ Overlapping Tax Increment Debt (Successor Agency) 55,890,000 100.000% 55,890,000 Total Direct Debt $ 955,512
Total Overlapping Debt 123,519,098
Combined Total Debt $ 124,474,610 (2)
(1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.81%
Total Direct Debt ($1,125,000) 0.03%
Total Combined Debt 3.77%
Ratios to Redevelopment Successor Agency Incremental
Valuation ($2,296,361,532):

Total Overlapping Tax Increment Debt 2.43%
Source: California Municipal Statistics, Inc.

ATTACHMENT A

CITY OF STANTON

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(170)
2011-12 2012-13 2013-14 2014-15 2015-16
Assessed
Valuation $ 2,063,292,635 $ 2,073,751,661 $ 2,146,057,305 $ 2,299,000,205 $ 2,433,204,888 Conversion
Percentage 25% 25% 25% 25% 25%
Adjusted Assessed
Valuation 515,823,159 518,437,915 536,514,326 574,750,051 608,301,222 Debt Limit
Percentage 15% 15% 15% 15% 15%
Debt Limit 77,373,474 77,765,687 80,477,149 86,212,508 91,245,183 Total Net Debt
Applicable to
Limit - - - - -
Legal Debt
Margin $ 77,373,474 $ 77,765,687 $ 80,477,149 $ 86,212,508 $ 91,245,183 Total Net Debt
Applicable to
Limit as
Percentage of
Debt Limit 0%0% 0%0%0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments.

Sources: City Finance Department
HdL Coren & Cone
Fiscal Year

ATTACHMENT A

CITY OF STANTON

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(171)
2016-17 2017-18 2018-19 2019-20 2020-21
Assessed
Valuation $ 2,566,311,820 $ 2,678,905,775 $ 2,834,604,233 $ 3,014,836,696 $ 3,294,354,368 Conversion
Percentage 25% 25% 25% 25% 25%
Adjusted Assessed
Valuation 641,577,955 669,726,444 708,651,058 753,709,174 823,588,592 Debt Limit
Percentage 15% 15% 15% 15% 15%
Debt Limit 96,236,693 100,458,967 106,297,659 113,056,376 123,538,289 Total Net Debt
Applicable to
Limit - - - - -
Legal Debt
Margin $ 96,236,693 $ 100,458,967 $ 106,297,659 $ 113,056,376 $ 123,538,289 Total Net Debt
Applicable to
Limit as
Percentage of
Debt Limit 0%0% 0%0%0%
Fiscal Year

ATTACHMENT A

CITY OF STANTON

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(172)
Fiscal Tax
Year Increment Principal Interest Principal Interest Principal Interest 2011-12 10,989,535 $ $ - $ - $ - $ - $ - $ -
2012-13 - - - - - - -
2013-14 - - - - - - -
2014-15 - - - - - - -
2015-16 - - - - - - -
2016-17 - - - - - - -
2017-18 - - - - - - -
2018-19 - - - - - - -
2019-20 - - - - - - -
2020-21 - - - - - - -
Note:
(1) The liabilities for these outstanding bonds were transferred to the Successor Agency to the Stanton Redevelopment Agency on February 1, 2012, and are no longer debt of the primary government.

Source: City Finance Department
Refunding Bonds 2005 Series A 2005 Series B
Debt Service Debt Service (1) Debt Service (1)
1993 Tax Allocation Tax Allocation Bonds, Tax Allocation Bonds,

ATTACHMENT A

CITY OF STANTON

PLEDGED REVENUE COVERAGE (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(173)
Fiscal
Year Principal Interest Principal Interest Principal Interest Coverage 2011-12 $ - $ - $ - $ - $ - $ - 0.00%
2012-13 - - - - - - -
2013-14 - - - - - - -
2014-15 - - - - - - -
2015-16 - - - - - - -
2016-17 - - - - - - -
2017-18 - - - - - - -
2018-19 - - - - - - -
2019-20 - - - - - - -
2020-21 - - - - - - -
Debt Service (1)
2010 Series A 2011 Series A 2011 Series B
Debt Service (1) Debt Service (1)
Tax Allocation Bonds, Tax Allocation Bonds, Tax Allocation Bonds,

ATTACHMENT A

CITY OF STANTON

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
YEAR ENDED JUNE 30, 2021
(174)
Total
Median Personal Per Capital
Calendar Median Housing Income Personal Unemployment
Year Population Age Price (in thousands) Income Rate
2011 38,498 33.9 289,500 $ 776,659 $ 20,174 $ 13.9%
2012 38,764 32.7 270,000 784,118 20,228 9.3%
2013 38,963 33.6 345,000 779,377 20,003 8.2%
2014 38,954 33.7 383,000 757,616 19,449 7.2%
2015 39,751 34.3 430,000 725,662 18,255 5.9%
2016 39,611 33.5 412,500 729,707 18,421 5.3%
2017 39,470 34.4 450,000 747,172 18,930 4.1%
2018 39,307 34.5 432,000 781,143 19,872 3.2%
2019 39,077 34.5 445,000 825,807 21,132 3.1%
2020 39,573 34.9 470,000 900,452 22,754 10.7%

ATTACHMENT A

CITY OF STANTON

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
YEAR ENDED JUNE 30, 2021
(175)
% of Total % of Total
City City
Employer Employees Rank Employment Employees Rank Employment Rowntree Gardens
(formerly Quaker Gardens) 334 1 1.85% - - -
Home Depot 165 2 0.91% 144 3 0.76%
Super King Market 128 3 0.71% - - -
CR Transfer Inc. 122 4 0.67% 192 1 1.01%
Great Scott Tree Service, Inc. 122 5 0.67% - - -
All Metals Processing of Orange
County, LLC 105 6 0.58% 127 4 0.67%
Adventure City 105 7 0.58% 121 5 0.64%
Custom Pipe & Fabrication Inc. 104 8 0.57% 74 6 0.39%
USS Cal Builders 95 9 0.52% - - -
Walmart Market #4134 93 10 0.51% - - -
Food 4 Less - 0.00% - 68 7 0.36%
Cameron Welding Supply - - 0.00% 52 10 -
Sam's Club - - - 149 2 0.78%
Acapulco Restaurants - - - 60 8 0.32%
Primus Inc. - - - 58 9 0.31%
Total Top 10 Employers 1,373 7.59% 1,045 5.50%
Total City Labor Force 18,100 19,000
Source: City business license database
Fiscal Year 2011-12 Comprehensive Annual Financial Report Employment Development Department (for City Labor Force data) 2020-21 2011-12

ATTACHMENT A

CITY OF STANTON

FULL-TIME EQUIVALENT CITY EMPLOYEES BY DEPARTMENT

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(176)
Department 2011-12 2012-13 2013-14 2014-15 2015-16
Administration 4.00 4.00 4.00 4.00 4.00
Community Development (1) 7.50 7.50 7.50 7.50 8.50
Community Services 4.00 3.00 3.00 3.00 6.00
Finance 4.00 4.00 4.00 4.00 5.00
Public Safety (1) 0.00 0.00 0.00 0.00 0.00
Public Works 6.50 6.50 6.50 6.50 6.00
Total 26.00 25.00 25.00 25.00 29.50
Note:
(1) Code Enforcement and Parking Control were transferred to the Public Safety Department in Fiscal Year 2018-19.

Source: City Finance Department
Fiscal Year

ATTACHMENT A

CITY OF STANTON

FULL-TIME EQUIVALENT CITY EMPLOYEES BY DEPARTMENT (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(177)
Department 2016-17 2017-18 2018-19 2019-20 2020-21
Administration 4.50 4.50 4.50 4.50 5.50
Community Development (1) 8.50 9.00 6.00 6.00 6.50
Community Services 6.00 6.00 16.00 16.00 17.00
Finance 5.13 5.25 6.75 6.75 6.00
Public Safety (1) 0.00 0.50 8.00 9.00 9.00
Public Works 6.38 6.75 8.75 8.75 9.50
Total 30.51 32.00 50.00 51.00 53.50
Fiscal Year

ATTACHMENT A

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(178)
Department 2011-12 2012-13 2013-14 2014-15 2015-16
City Council
Public Meetings Held 28 27 31 39 35
Ordinances Adopted 14 16 10 7 13
Resolutions Adopted 41 33 51 47 46
City Attorney
Ordinances Prepared 17 11 10 7 13
Resolutions Prepared 44 5 51 47 46
Contracts Prepared n/a n/a 50 75 86
City Clerk
Public Meetings Held 28 27 36 39 35
Ordinances Processed
and Published 14 16 10 7 13
Resolutions Processed
and Published 41 33 51 47 46
Public Records Requests
Processed 127 189 217 301 300
Contracts Processed 175 204 50 75 86
City Manager
Staff Reports Prepared 29 17 10 10 -
Letters Written 41 63 31 35 42
Memos Written 42 34 30 28 61
City Council Meetings
Attended 28 26 31 39 35
Finance
Cash Receipts Processed1 6,356 7,001 7,572 8,961 6,858
Warrants Processed 2,131 6,356 2,219 2,333 2,490
Payroll Checks Processed 1,603 1,106 1,365 1,141 1,613
Journal Entries Processed 316 255 252 296 247
Audit Adjustments - - - - -
Business Licenses
Processed 1,590 1,497 1,788 1,974 2,197
Police Services
Cases Assigned to General
Crime Investigators 1,535 1464 1283 1,421 835
Directed Enforcement Shifts
Deployed Each Week 4 4 1.5 3 5
Average Response Time in
Minutes to Emergency Life
Threatening Calls 5:48 3:28 3:53 4:03 3:50
Shifts of Traffic Enforcement
in High Accident and
Residential Areas per Week - - 0.17 1 4
Schools Receiving School
Programs 42221
Fiscal Year

ATTACHMENT A

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(179)
Department 2016-17 2017-18 2018-19 2019-20 2020-21
City Council
Public Meetings Held 37 36 34 37 55
Ordinances Adopted 14 12 8 14 8
Resolutions Adopted 41 48396045
City Attorney
Ordinances Prepared 15 12 8 14 8
Resolutions Prepared 41 48 39 60 45
Contracts Prepared 88 90 84 90 94
City Clerk
Public Meetings Held 37 36 34 37 55
Ordinances Processed
and Published 14 12 8 14 8
Resolutions Processed
and Published 41 48 39 60 45
Public Records Requests
Processed 278 280 159 170 180
Contracts Processed 88 90 84 90 94
City Manager
Staff Reports Prepared - - - - -
Letters Written 44 30303845
Memos Written 58 40363240
City Council Meetings
Attended 36 35 34 37 55
Finance
Cash Receipts Processed1 10,260 6,854 5,512 5,690 4,109 Warrants Processed 2,559 2,462 2,405 2,182 2,057
Payroll Checks Processed 1,769 1,819 1,800 1,804 1,806
Journal Entries Processed 281 234 287 344 1,493
Audit Adjustments - - - - -
Business Licenses
Processed 2,946 3,304 3,126 2,649 2,577
Police Services
Cases Assigned to General
Crime Investigators 1,582 964 737 856 1,068
Directed Enforcement Shifts
Deployed Each Week 55555
Average Response Time in
Minutes to Emergency Life
Threatening Calls 4:03 4:05 4:21 3:50 4:17
Shifts of Traffic Enforcement
in High Accident and
Residential Areas per Week 44444
Schools Receiving School
Programs n/a n/a n/a n/a n/a
Fiscal Year

ATTACHMENT A

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(180)
Department 2011-12 2012-13 2013-14 2014-15 2015-16
Fire Protection
Paramedic Calls
Responded to 1,994 2,141 2,283 2,540 2,659
Fire Calls Responded to 52 55 38 41 54
Other Calls Responded to 628 682 558 532 699
Fire Inspections Made 231 224 485 505 602
Students Receiving Fire
Safety Education Programs 380 140 145 175 490
Adults Receiving Fire
Safety Education Programs 1,044 50 60 75 220
Plan Checks Completed 45 45 57 48 51
Planning
Administrative Permits 76557
Preliminary Plan Review - 1 - 3 3
Entitlements 35 8111329
Environmental 29 11161326
Home Occupation Permits 24 19271750
Land Divisions 41315
Landscape Plan Check 5 2 2 - 4
Sign Permits 21 25424823
Plan Checks
(Over-the-Counter) 40 38317468
Building
Building Plan Reviews 38 61 148 108 101
Building Permits 244 211 283 314 264
Electrical Permits 90 114 197 229 233
Mechanical Permits 68 70 119 132 120
Plumbing Permits 90 112 139 134 150
Inspections for Compliance (1) 7 - 153 - -
Parking Control
Citations 6,118 6,478 6,335 6,361 6,843
Vehicles Towed 137 217 242 220 299
Engineering
Value of Capital Projects
Initiated $5.7M $1.6M $0.9M $11M $1M
Engineering Plan Checks 12 14 15 17 7
Permits Issued 98 106 111 95 132
Value of Competitive Grants
Obtained $1.0M $0.4M $0.4M $0.1M $0.3M
Capital Project Administered 7 7 4 7 3
Public Facilities
Service Requests 125 205 199 232 87
Unscheduled Repairs 115 62 60 171 68
Fiscal Year

ATTACHMENT A

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(181)
Department 2016-17 2017-18 2018-19 2019-20 2020-21
Fire Protection
Paramedic Calls
Responded to 2,192 2,627 2,794 6,307 3,323
Fire Calls Responded to 37 42 55 222 182
Other Calls Responded to 1042 611 494 647 205
Fire Inspections Made 524 612 674 15 15
Students Receiving Fire
Safety Education Programs 370 200 250 4 61
Adults Receiving Fire
Safety Education Programs 240 456 250 4 132
Plan Checks Completed 72 83 87 n/a 224
Planning
Administrative Permits 47653
Preliminary Plan Review 26153
Entitlements 29 32 18 35 17
Environmental 29 21 12 1 1
Home Occupation Permits 21 117 11 26 27
Land Divisions 46365
Landscape Plan Check - 3 6 3 3
Sign Permits 26 322527 8
Plan Checks
(Over-the-Counter) 70 147 93 103 112
Building
Building Plan Reviews 101 138 94 82 121
Building Permits 254 368 358 450 535
Electrical Permits 214 242 239 307 398
Mechanical Permits 112 145 156 219 223
Plumbing Permits 124 194 174 275 253
Inspections for Compliance (1) - - - - -
Parking Control
Citations 8,039 8,049 7,937 5,765 9,073
Vehicles Towed 440 574 451 347 179
Engineering
Value of Capital Projects
Initiated $1M $2.6M $3.0M $3.2M $1.47M
Engineering Plan Checks 7 10 8 15 4
Permits Issued 132 135 204 102 100
Value of Competitive Grants
Obtained $0.3M $0.2M - - -
Capital Project Administered 3 7 7 8 7
Public Facilities
Service Requests 277 504 475 682 1134
Unscheduled Repairs 92 73 64 173 146
Fiscal Year

ATTACHMENT A

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(182)
Department 2011-12 2012-13 2013-14 2014-15 2015-16
Buildings/Grounds Maintenance
No. of Service Requests 103 68 70 112 57
HVAC Service Calls 2 16 14 7 4
Parks Maintenance
Service Requests 20 43 65 112 61
Unscheduled Repairs 62 3 10 8 25
Street Maintenance
Potholes Repaired 67 10 17 15 10
Service Requests 325 109 799 815 201
Tonnage of Asphalt Placed 5 6 6 8 6
Storm Drain Inlets Cleaned 177 183 183 183 183
Service Calls for Drainage
Issues 1 2 6 2 1
Community Services
Senior Clients Served 2,500 2,400 2,800 2,425 2,450
Commission Meetings 8 0 0 11 10
After School Program
Participation 750 150 312 210 220
Info and Referral Inquires
Answered 2,200 2,200 2,250 2,210 2,230
Sports Facility Usage 8,000 8,000 7,000 1,500 3,120
Notes:
n/a - Information is not available.
(1) In Fiscal Year 2012-13, the business license process was trimmed, removing the requirement of investigations for compliance.

Fiscal Year

ATTACHMENT A

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(183)
Department 2016-17 2017-18 2018-19 2019-20 2020-21
Buildings/Grounds Maintenance
No. of Service Requests 64 64 120 189 1134
HVAC Service Calls 3 3 13 17 8
Parks Maintenance
Service Requests 72 226 229 478 2298
Unscheduled Repairs 17 32 68 83 103
Street Maintenance
Potholes Repaired 43 14 35 66 87
Service Requests 227 702 698 872 2830
Tonnage of Asphalt Placed 6 6 3 2.5 3
Storm Drain Inlets Cleaned 183 183 183 183 183
Service Calls for Drainage
Issues 3 3 5 16 8
Community Services
Senior Clients Served 2,600 3,600 4,000 8,271 15,613
Commission Meetings 99977
After School Program
Participation 250 133 115 318 134
Info and Referral Inquires
Answered 2,500 2,051 2,216 1,945 1,097
Sports Facility Usage 13,760 15,080 12,600 12,417 23,141 Fiscal Year

ATTACHMENT A

CITY OF STANTON

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(184)
Function 2011-12 2012-13 2013-14 2014-15 2015-16
Public Works
Streets (Miles) 44 44 44 44 44
Alleys (Square Feet) 326,000 326,000 326,000 326,000 326,000 Curbs and Gutters
(Linear Feet) 439,736 439,736 439,736 439,736 441,200
Sidewalks (Square Feet) 2,339,372 2,339,372 2,339,372 2,339,372 2,341,000 Streetlights 1,295 1,295 1,295 1,295 1,295
Traffic Signals 15 15 15 15 16
Storm Drain System
(Linear Feet) 26,889 26,889 26,889 26,889 26,889
Parks and Recreation
Parks 88889
Community Center 22223
Library
Branch 1 1 1 1 1
Sewer
Sewer Lines (Miles) 40 40 40 40 40.5
Fiscal Year

ATTACHMENT A

CITY OF STANTON

CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
YEAR ENDED JUNE 30, 2021
(185)
Function 2016-17 2017-18 2018-19 2019-20 2020-21
Public Works
Streets (Miles) 44 44 44 44 44
Alleys (Square Feet) 326,000 326,000 324,185 324,185 324,185 Curbs and Gutters
(Linear Feet) 441,200 441,200 441,200 441,445 441,445
Sidewalks (Square Feet) 2,341,000 2,341,000 2,341,000 2,343,100 2,343,100 Streetlights 1,295 1,295 1,295 1,295 1,295
Traffic Signals 16 16161616
Storm Drain System
(Linear Feet) 26,889 26,889 26,889 26,889 26,889
Parks and Recreation
Parks 99999
Community Center 33333
Library
Branch 11111
Sewer
Sewer Lines (Miles) 40.5 40.5 40.5 40.5 40.5
Fiscal Year

ATTACHMENT A

(186)
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ATTACHMENT A

STANTON HOUSING AUTHORITY
(A COMPONENT UNIT OF

THE CITY OF STANTON)

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

ATTACHMENT B

Click here to return to the agenda.

STANTON HOUSING AUTHORITY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 12
STATEMENT OF ACTIVITIES 13

FUND FINANCIAL STATEMENTS
BALANCE SHEET – GENERAL FUND 15
RECONCILIATION OF THE BALANCE SHEET – GENERAL

FUND TO THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION 16

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – GENERAL FUND 17

RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE –

GENERAL FUND TO THE GOVERNMENT-WIDE STATEMENT
OF ACTIVITIES 18
NOTES TO BASIC FINANCIAL STATEMENTS 19

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

CALPERS MISCELLANEOUS PENSION PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY 38
SCHEDULE OF CONTRIBUTIONS 40
BUDGETARY COMPARISON SCHEDULE 42
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 43

ATTACHMENT B

CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details. (1)
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Board of Directors
City of Stanton, California
Stanton, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activity and the major fund of the Stanton Housing Authority, a component unit of the City of Stanton, California (the Authority), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

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

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

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

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

ATTACHMENT B

Board of Directors
City of Stanton, California
(2)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activity and the major fund of the Authority as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 6 to the financial statements, the Authority made a restatement to beginning net position. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of proportionate share of the net pension liability and the schedule of contributions for the CalPERS miscellaneous pension plan, and the budgetary comparison schedule for the Authority, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2021, on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine California
December 28, 2021

ATTACHMENT B

(3)
MANAGEMENT’S DISCUSSION AND ANALYSIS

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(4)
As management of the Stanton Housing Authority (Housing Authority), we offer readers of the Housing Authority’s financial statements this narrative overview and analysis of the financial activities of the Housing Authority for the fiscal year ended June 30, 2021. Please read it in conjunction with the accompanying transmittal letter at the front of this report, and the basic financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
 The assets and deferred outflows of resources of the Housing Authority exceeded its liabilities and deferred inflows of resources on June 30, 2021, by $34.6 million. This amount is referred to as the net position of the Housing Authority. Of this amount, $13.8 million is restricted net position and may be used for the Housing Authority’s affordable housing programs.  During fiscal year 2020-21, the Housing Authority’s overall net position decreased by $4.7 million primarily due to the sale of two properties, which resulted in a loss of $1 million, and payments made for the Project Homekey initiative, including a $1.9 million capital contribution to purchase a hotel that will be used for permanent supportive housing.  Capital assets include a prior period restatement of $2.2 million to allocate the properties acquired in the Tina Pacific project area between land and buildings and improvements and to account for accumulated depreciation through June 30, 2020. Additional information regarding the prior year restatement can be found in Note 6 to the Notes to Basic Financial Statements.

OVERVIEW OF THE FINANCIAL STATEMENTS
Management’s discussion and analysis is intended to serve as an introduction to the Housing Authority’s basic financial statements. The Housing Authority’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also consists of required 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 Housing Authority’s finances, in a manner similar to a private-sector business. There are two government-wide financial statements: the Statement of Net Position and the Statement of Activities. They present information for the government as a whole and present a longer-term view of the Housing Authority’s finances. These two statements help to answer the question: “Is the Housing Authority as a whole better off or worse off as a result of this year’s activities?”
The Statement of Net Position presents information on all of the Housing Authority’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference 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 Housing Authority is improving or deteriorating.

The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying events 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 the future fiscal periods (e.g., uncollected rent and earned but unused vacation leave).

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(5)
The governmental activities of the Housing Authority are primarily funded by rental income from the Housing Authority’s Tina Pacific properties include the following functions: general government, community development, public safety, and public works.

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 Housing Authority, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Housing Authority’s activities are reported in one General Fund.

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 on spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.

Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Notes to Basic 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.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Housing Authority’s budgetary policies and supplementary information on the Housing Authority’s defined benefit plans.

FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Housing Authority, assets and deferred outflows exceeded liabilities by $34.6 million as of June 30, 2021. In comparison, net position was $39.3 million as of June 30, 2020 (after the $2.2 million restatement noted above).

The largest portion of the Housing Authority’s net position at June 30, 2021, ($20.8 million or 60.1% of total net position), reflects its investment in capital assets (e.g., land and buildings). The Housing Authority’s capital assets are currently used for affordable housing programs, primarily the Tina Pacific affordable housing project.

The remaining $13.8 million is restricted net position, representing resources that are subject to external restrictions or enabling legislation on how they may be used. The Housing Authority’s restricted net position is restricted for low- and moderate-income housing programs.

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(6)
A summary of the government-wide Statement of Net Position follows:
2021 2020 %
Current and other assets $ 14,380,157 $ 16,816,312 -14.5% Capital assets 24,921,808 20,795,128 -16.6%
Total assets 35,175,285 41,738,120 -15.7%
Deferred outflows of resources 64,465 42,522 51.6%
Long-term liabilities 328,093 188,943 73.6%
Other liabilities 304,376 54,929 454.1%
Total liabilities 632,469 243,872 159.3%
Deferred inflows of resources 8,842 14,780 -40.2%
Net position:
24,921,808 20,795,128 -16.6%
Restricted 13,803,311 16,600,182 -16.8%
Total net position $ 41,521,990 34,598,439 $ -16.7%
Investment in capital assets

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(7)
A summary of the government-wide Statement of Activities follows:
2021 2020 % Change
Revenues:

Program Revenues:

Charges for services 562,993 $ 553,759 $ 1.7%
Capital grants and
contributions - 3,377,369 100.0%
General revenues:

Investment earnings 17,235 422,084 -95.9%
Miscellaneous 1,271 12,733 -90.0%
Total revenues 581,499 4,365,945 -86.7%
Expenses:

General government 169,255 226,785 -25.4%
Community development 2,458,516 577,553 325.7%
Public safety 2,630,896 100.0% -
Public works 1,750 1,750 0.0%
Total expenses 5,260,417 806,088 552.6%
Change in Net Position (4,678,918) 3,559,857 -231.4%
Net position, beginning of
year, as restated 39,277,357 37,962,133 3.5%
Net position, end of year 34,598,439 $ $ 41,521,990 -16.7% During the current fiscal year, the Housing Authority’s net position decreased by $4.7 million primarily due to the sale of two properties, which resulted in a loss of $1 million, and payments made for the Project Homekey initiative, including a $1.9 million capital contribution to purchase a hotel that will be used for permanent supportive housing.

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(8)
Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2020-21 of Total 2019-20 (Decrease)
Charges for services $ 562,993 96.8% 9,234 $ 1.7%
Capital grants and contributions - 0.0% (3,377,369) 100.0% Investment earnings 17,235 3.0% (404,849) -95.9%
Miscellaneous 1,271 0.2% (11,462) -90.0%
TOTAL REVENUES $ 581,499 100.0% (3,784,446) $ -86.7%

REVENUES BY SOURCE
Charges for services

96.8%
Investment earnings

3.0%
Miscellaneous

0.2%

REVENUES BY SOURCE
Fiscal Year 2020-21
Revenues decreased by $3.8 million, or 86.7%, from the prior year. Capital contributions and grants decreased by $3.4 million, or 100.0%, in fiscal year 2020-21. The California Department of Finance’s approval of the Successor Agency’s Last and Final Recognized Payment Obligation Schedule (ROPS) during fiscal year 2019-20 permitted the Successor Agency to transfer $3.4 million in housing bond proceeds to the Housing Authority. Investment earnings decreased by $404,849, or 95.9%, in fiscal year 2020-21 due to the change in the investment market. The average yield of the California Local Agency Investment Fund (LAIF) was 0.50% in fiscal year 2020-21, compared to 1.9% in fiscal year 2019-20.

The cost of all governmental activities during fiscal year 2020-21 was $5.3 million. The following table summarizes and presents expenses by function and percentages for the fiscal year ended June 30, 2021, along with the percentage changes from the prior year.

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(9)
Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2020-21 of Total 2019-20 (Decrease)
General government $ 169,255 3.2% (57,530) $ -25.4%
Community development 46.8% 1,880,963 2,458,516 325.7%
Public safety 50.0% 2,630,896 2,630,896 100.0%
Public works 1,750 0.0% - 0.0%
TOTAL EXPENSES 5, $ 260,417 100.0% 4,454,329 $ 552.6%

EXPENSES BY FUNCTION
General
government

3.2%
Community
development
Public safety 46.8%

50.0%
Public works

0.0%

EXPENSES BY FUNCTION
Fiscal Year 2020-21
Expenses increased by $4.5 million, or 552.6%, from the previous fiscal year. General government expenses decreased by $57,530, or 25.4%, from fiscal year 2019-20 primarily because legal costs were lower during the current fiscal year. During fiscal year 2019-20, the Housing Authority incurred additional legal costs associated with the acquisition of several properties through eminent domain for the affordable housing project located in the Tina Pacific area. Community development expenses increased by $1.8 million, or 325.7%, primarily due to losses associated with the disposition of capital assets during fiscal year 2020-21. The Housing Authority sold two parcels to Habitat for Humanity for $210,100, resulting in a loss of $971,892. In addition, the Housing Authority demolished the buildings located at 8881 Pacific Avenue and 8931 Pacific Avenue. The cost to demolish the buildings was $187,675 and resulted in an additional loss on disposal of the $403,044 (the net book value of the assets). Public safety expenses increased by $2.6 million, or 100% from the previous year. The Housing Authority created a new division in its budget in fiscal year 2020-21 to address homeless prevention activities. During fiscal year 2020-21, the Housing Authority added two new staff positions, Outreach Coordinators, to interact with the homeless community and connect them with services to address their housing and other needs. On September 20, 2020, the Housing Authority approved a $5 million funding commitment for permanent supportive housing projects located in Stanton (part of the State’s Project Homekey Program). During fiscal year 2020-21, the Housing Authority paid $2.6 million of this funding commitment.

ATTACHMENT B

STANTON HOUSING AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
(10)

FINANCIAL ANALYSIS OF THE GENERAL FUND
As noted earlier, the Housing Authority uses fund accounting to ensure compliance with finance-related legal requirements. The focus of the Housing Authority’s general fund is to provide information on nearterm inflows, outflows, and balances of spending resources. Such information is useful in assessing the Housing Authority’s financing requirements.

As of June 30, 2021, the General Fund reported a restricted fund balance of $14.1 million, which represents a decrease of $2.7 million, or 16.0%, from the prior fiscal year, primarily due to the $2.6 million paid for the Project Homekey project that was previously discussed.

CAPITAL ASSETS
2021 2020 (restated) % Change
Land $ 14,674,615 $ 15,856,607 -7.5%
Buildings and improvements 6,120,513 6,820,568 -10.3%
Totals $ 20,795,128 $ 22,677,175 -8.3%
The prior year column reflects the prior period adjustment of $2.2 million that was previously mentioned. Total capital assets decreased $1.9 million, or 8.3% from the previous fiscal year. Land decreased by $1.2 million, or 7.5%, from fiscal year 2019-20 due to the sale of two parcels, 7922 Cerritos and 10522 Flower Avenue, to Habitat for Humanity. Buildings and improvements decreased by approximately $700,000, or 10.3% to account for current year depreciation as well as the demolition of two buildings. During fiscal year 2020-21, the Housing Authority demolished the buildings located at 8881 Pacific Avenue and 8931 Pacific Avenue. Additional information on the Housing Authority’s capital assets can be found in Notes 3 and 6 in the Notes to the Basic Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Housing Authority maintains a conservative approach to budgeting revenues and expenditures.

Management takes an active role in monitoring the application of the budget during the fiscal year to apply any necessary changes to projected revenues as well as appropriated expenditures. The budget for fiscal year 2021-22 includes a 14.4% reduction in revenues and 83.5% reduction in expenditure due to one-time revenues received and expenditures incurred during fiscal year 2020-21. The fiscal year 2021-22 budget was balanced after using $433,600 in fund balance.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Housing Authority’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 information should be addressed to: Michelle Bannigan, Finance Director, City of Stanton, 7800 Katella Avenue, Stanton, California 90680.

ATTACHMENT B

(11)

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ATTACHMENT B

STANTON HOUSING AUTHORITY

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(12)

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES

CURRENT ASSETS
Cash and Investments $ 13,168,921
Receivables 143,236
Total Current Assets 13,312,157
Notes and Loans Receivable 1,068,000
Capital Assets:

Not Being Depreciated 14,674,615
Being Depreciated (Net of Accumulated Depreciation) 6,120,513 Total Assets 35,175,285

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount from Pension Plans 64,465
Total Deferred Outflows of Resources 64,465

LIABILITIES AND DEFERRED INFLOWS OF RESOURCES

CURRENT LIABILITIES
Accounts Payable 27,201
Due to the City of Stanton 262,625
Deposits 14,550
Total Current Liabilities 304,376

LONG-TERM LIABILITIES
Net Pension Liability 328,093
Total Liabilities 632,469

DEFERRED INFLOWS OF RESOURCES
Deferred Amount from Pension Plans 8,842
Total Deferred Inflows of Resources 8,842

NET POSITION
Investment in Capital Assets 20,795,128
Restricted for:

Low- and Moderate-Income Housing 13,803,311
Total Net Position 34,598,439 $

ATTACHMENT B

STANTON HOUSING AUTHORITY

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(13)
Net (Expense)
Revenue and
Changes in
Charges Operating Capital Net Position
for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Total GOVERNMENTAL ACTIVITIES:

General Government $ 169,255 $ - $ - $ - $ (169,255)
Public Safety 2,630,896 - - (2,630,896) -
Community Development 2,458,516 562,993 - (1,895,523) - Public Works 1,750 - - - (1,750)
Total Governmental
Activities $ 5,260,417 $ 562,993 $ - $ (4,697,424) -

GENERAL REVENUES
Investment Earnings 17,235
Miscellaneous 1,271
Total General Revenues 18,506
CHANGE IN NET POSITION (4,678,918)
Net Position - Beginning of Year, as Restated 39,277,357 NET POSITION - END OF YEAR $ 34,598,439
Program Revenues

ATTACHMENT B

(14)

FUND FINANCIAL STATEMENTS

ATTACHMENT B

STANTON HOUSING AUTHORITY
BALANCE SHEET – GENERAL FUND
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(15)
ASSETS
Cash and Investments $ 13,168,921
Receivables:

Accounts 132,485
Interest 10,751
Notes and Loans Receivable 1,068,000
Total Assets $ 14,380,157

LIABILITIES AND FUND BALANCE

LIABILITIES
Accounts Payable $ 27,201
Due to the City of Stanton 262,625
Deposits 14,550
Total Liabilities 304,376

FUND BALANCE
Restricted for Low- and Moderate-Income Housing 14,075,781 Total Fund Balance 14,075,781
Total Liabilities and Fund Balance 14,380,157 $

ATTACHMENT B

STANTON HOUSING AUTHORITY
RECONCILIATION OF THE BALANCE SHEET – GENERAL FUND

TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(16)
Total Fund Balance - Governmental Fund $ 14,075,781
Amounts reported for the governmental activity in the statement of net position are different because:

Capital assets used in the governmental activity are not current financial resources and therefore are not reported in the governmental fund balance sheet.

Capital Assets 23,152,780 $
Accumulated Depreciation (2,357,652)
Total 20,795,128
Pension-related debt applicable to the Authority's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources 64,465
Deferred Inflows of Resources (8,842)
Pension Liability (328,093)
Total (272,470)
Net Position of Governmental Activities $ 34,598,439

ATTACHMENT B

STANTON HOUSING AUTHORITY

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

GENERAL FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(17)

REVENUES
Interest Income $ 17,235
Rental Income 562,993
Miscellaneous 1,171
Total Revenues 581,399

EXPENDITURES
Current:

General Government 169,255
Public Safety 2,630,896
Community Development 675,200
Public Works 1,750
Total Expenditures 3,477,101
EXCESS OF REVENUES UNDER EXPENDITURES (2,895,702)

OTHER FINANCING SOURCES
Sale of Capital Assets 210,100
Total Other Financing Sources 210,100
NET CHANGE IN FUND BALANCE (2,685,602)
Fund Balance - Beginning of Year 16,761,383
FUND BALANCE - END OF YEAR $ 14,075,781

ATTACHMENT B

STANTON HOUSING AUTHORITY

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – GENERAL FUND TO THE

GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Basic Financial Statements.
(18)
Net Change in Fund Balance - Total Governmental Fund $ (2,685,602) Amounts reported for the 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 those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital outlays exceed depreciation and retirements in the current period.

Disposition of Capital Assets (1,585,036) $
Depreciation Expense (297,011)
Total (1,882,047)
Pension expense reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (111,269)
Change in Net Position of Governmental Activities $ (4,678,918)

ATTACHMENT B

(19)

NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(20)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Stanton Housing Authority (the Authority), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant Authority accounting policies are described below.

A. Description of Reporting Entity
The Authority was formed on March 22, 2011, by City of Stanton Council to facilitate the retention and use of transferred properties from the former Stanton Redevelopment Agency consistent with the redevelopment plan and for the purposes of ongoing maintenance of completed development projects. The Authority is an integral part of the reporting entity of the City. The funds of the Authority have been included within the scope of the basic financial statements of the City because City Council exercises oversight responsibility over the operations of the Authority and has a financial benefit/burden relationship.

B. Financial Statement Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. The statement of activities presents the change in net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(21)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Financial Statement Presentation (Continued)
Government-Wide Financial Statements (Continued)
The types of transactions reported as program revenues for the Authority can be reported in three categories:

1. Charges for services

2. Operating grants and contributions

3. Capital grants and contributions
Charges for services include rental income for the Tina Way and Pacific Avenue properties received from lessees who use and directly benefit from the goods, services or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular function.

The Authority’s capital grants and contributions consist of bond proceeds received from the Stanton Successor Agency that were utilized to facilitate the capital projects for which those bonds were issued. Investment earnings and miscellaneous revenues are properly not included among program revenues and are reported instead as general revenues.

Amounts to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenses. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. The Authority has no long-term debt.

Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenue, expenditures, and changes in fund balance for the Authority. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of available spendable resources. Noncurrent portions of long-term receivables due to the governmental fund are reported on its balance sheets in spite of its spending measurement focus. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, this statement is said to present a summary of sources and uses of available spendable resources during a period.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(22)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Financial Statement Presentation (Continued)
Governmental Fund Financial Statements (Continued)
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures in the current period. 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 Authority 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, except for principal and interest on general long-term liabilities, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisition of capital leases are reported as other financing sources.

Rental income and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expendituredriven grants are recognized as revenue when the qualifying expenditures have been incurred and all eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue (within 60 days of yearend). Amounts owed to the Authority, which are not available, are recorded as receivables and deferred inflows of resources. All other revenue items are considered to be measurable and available only when cash is received by the government.

C. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that time. The Authority has the following items that qualify for reporting in this category:
 Deferred outflow related to pensions equal to employer contributions made after the measurement date of the net pension liability.
 Deferred outflow from pensions resulting from differences between actual and expected experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plan.
 Deferred outflow related to pensions resulting from the net differences between projected and actual earnings on plan investments. These amounts are amortized over five years.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(23)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and governmental funds balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The Authority has the following items that qualify for reporting in this category:
 Deferred inflow related to pensions for changes in assumptions and changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.

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

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

E. Assets, Liabilities, and Net Position or Equity
Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments that are not traded on a market, such as investments in external pools, are valued based on the stated fair value represented by the external pool (in relation to the amortized cost of that portfolio). Changes in fair value that occur during a fiscal year are recognized as investment income for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity or sale of investments.

Cash and investments are pooled with other City funds for investment purposes, with interest being allocated monthly to all funds legally requiring allocation and to other various funds at the direction of management based on the month-end pooled funds’ cash and investment balances. Interest income for cash and investments excluded from pooled cash is credited directly to the related fund. Investment policies applicable to the Authority’s funds are those of the City and are included in the notes to the City’s basic financial statements.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(24)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Liabilities, and Net Position or Equity (Continued) Capital Assets
Capital assets, which include land, are reported in the government-wide financial statements. Acquired assets are recorded at historical cost or estimated historical cost.

Donated assets are valued at the acquisition value of the assets on the date on which they were contributed. The costs of normal maintenance and repairs that do not add value to the assets or materially extend the life are not capitalized. Capital assets are defined as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year with the exception of land, structures and improvements, and infrastructure, which have a threshold of $50,000. The Authority has no capital assets requiring depreciation and would follow the Authority’s policy for depreciation should assets arise in the future.

Net Position
In the government-wide financial statements, net position is classified in the following applicable categories:

Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. The Authority has no debt related to capital assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of net investment in capital assets or restricted net position.

Fund Balance
The fund balance reported on the fund statements is classified in the following applicable categories:

Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(25)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Liabilities, and Net Position or Equity (Continued) Fund Balance (Continued)
Committed – This classification includes amounts for which the use of such amounts is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The Authority Council is considered the highest authority for the Authority, and the adoption of a formal resolution prior to the end of the fiscal year is required to establish a fund balance commitment. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of resolution) to remove or revise the limitation. The Authority has no committed fund balance.

Assigned – This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed.

Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The Authority Board has authorized the Finance Director for that purpose. The Finance Director determines the assigned amount based on encumbrances and any future budget deficits. The Authority has no assigned fund balance.

Unassigned – This classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

Spending Policy
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned fund balances are available, the Authority’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(26)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. 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 Authority’s California Public Employees’ Retirement System (CalPERS) 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.

G. Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the statement of net position date and reported amounts of revenues and expenses during the reporting period.

Estimates are used to determine the net pension liability and corresponding deferred outflows of resources and deferred inflows of resources, and certain liabilities. Actual results may differ from those estimates.

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

Statement of Net Position:

Cash and Investments $ 13,168,921
Cash and investments as of June 30, 2021, consists of the following:

Local Agency Investment Fund (LAIF) $ 13,168,921

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(27)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Equity in the Cash and Investment Pool of the City of Stanton The Authority has no separate bank accounts or investments other than LAIF and its equity in the cash and investment pool managed by the City. The Authority is a voluntary participant in the City’s pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the Council of the City of Stanton. The Authority has not adopted an investment policy separate from that of the City. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded at the estimated fair value. Due to the negative cash position of the Authority, for the fiscal year ended June 30, 2021, the Authority has an amount due to the City of $262,625.

Investments Authorized by the City of Stanton’s Investment Policy The table below identifies investment types that are authorized for the City of Stanton by the California Government Code and the City’s investment policy. The City’s Investment Policy is reviewed and adopted by the City Council each year. Regarding allowable investment types, the investment policy is more conservative and restrictive than the investment vehicles authorized by Section 53600.5 of the California Government Code. Investment vehicles not specifically mentioned in the City’s investment policy are not authorized unless the policy is amended by the City Council or is approved as part of the provisions of the bond indentures. Investments are limited to the following:

Maximum Maximum
Investment Types Authorized by State Law Maximum Percentage Investment in or the City’s Investment Policy Maturity* of Portfolio One Issuer United States Treasury Notes 5 Years 100% None
United States Government-Sponsored
Agency Securities 5 Years 100% 25%
Federal Home Loan Banks (FHLB) 5 Years 100% 25%
Fannie Mae (FNMA) 5 Years 100% 25%
Federal Home Loan Mortgage Corp. (FHLMC) 5 Years 100% 25% Federal Farm Credit Banks (FFCB) 5 Years 100% 25%
All Other 5 Years 100% 25%
Local Agency Securities 5 Years 100% 5%
Collateralized Time Deposits (Nonnegotiable
Certificates of Deposit) 5 Years 30% None
Banker’s Acceptances 180 Days 40% 5%
Commercial Paper 270 Days 25% 5%
Medium-Term Corporate Notes 5 Years 30% 5%
Local Agency Investment Fund (LAIF) N/A 100% None
Negotiable Certificates of Deposit 5 Years 30% 5%
Money Market Mutual Funds N/A 20% None
Asset-Backed and Mortgage-Backed Securities 5 Years 20% 5% Supranational 5 Years 30% 10%
Local Government Investment Pools N/A 100% None
Certificate of Deposit Placement Service (CDARS) 5 Years 30% None *Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

N/A - Not Applicable

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(28)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Authority manages its exposure to interest rate risk 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.

The Authority’s investment in both LAIF and the City’s investment pool are available upon demand.

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. None of the Authority’s investments are rated.

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

Investment in State Investment Pool
The Authority 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 Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’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.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(29)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements
The Authority categorizes its fair value measurement within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted price of similar assets in active markets, and Level 3 inputs are significant unobservable inputs. The Authority’s investment in LAIF and the City investment pool are not subject to the fair value hierarchy.

NOTE 3 CAPITAL ASSETS
A summary of changes in the capital assets activity for the year ended June 30, 2021, is as follows:

Balance at
July 1, 2020, Balance at
as Restated Additions Deletions June 30, 2021
Capital Assets, not Being Depreciated:

Land $ 15,856,607 $ (1,181,992) - $ $ 14,674,615
Capital Assets, Being Depreciated:

Buildings and Improvements 9,065,201 (587,036) - 8,478,165 Less Accumulated Depreciation for:

Buildings and Improvements (2,244,633) (297,011) 183,992 (2,357,652) Total Capital Assets,
Being Depreciated, net 6,820,568 (297,011) (403,044) 6,120,513 Total Governmental Activities
Capital Assets, net $ 22,677,175 $ (297,011) $ (1,585,036) $ 20,795,128 NOTE 4 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2021, was as follows:

Stanton Accessible Apartments Construction $ 383,436
First-Time Home Buyer 40,000
Housing Rehabilitation 1,028,000
Allowance for Doubtful Accounts (383,436)
Total $ 1,068,000
In November 2004, the former Redevelopment Agency entered into a Residual Receipts Promissory Note with Stanton Accessible Apartments Construction. Under the terms of the agreement, the former Redevelopment Agency loaned $258,261 to Stanton Accessible Apartments Construction. The note commenced on May 5, 2005, and bears interest at 3% per year. The note was transferred to the Housing Authority on February 1, 2012. The total amount outstanding, including accrued interest at June 30, 2021, was $383,436, with an allowance for the forgivable amount of $383,436.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
(30)
NOTE 4 NOTES AND LOANS RECEIVABLE (CONTINUED)
The First Time Home Buyer Assistance Program, or HOMES, was created by the former Redevelopment Agency in order to help existing and new residents purchase their first home. The HOMES program provides up to $40,000 in down payment assistance for eligible first-time home buyers of low to moderate income. Assistance is in the form of a 45-year loan with interest and payments deferred for the first 10 years of the loan. The HOMES loan is secured by a second trust deed in conjunction with a first mortgage offered by a participating lender. The loan was transferred to the Housing Authority on February 1, 2012.

The total amount outstanding at June 30, 2021, was $40,000.

The Housing Rehabilitation Loan Program offers loans of up to $50,000 for newer homes and up to $75,000 for pre-1960 homes to low- and moderate-income households. The purpose of the program is to assist Stanton’s homeowners with addressing code violations and eliminating blighted, unsafe, unsanitary, and deteriorating living conditions. The loans are interest free with deferred payments until the property is sold, refinanced, or a change in title occurs. The loans were transferred to the Housing Authority on February 1, 2012. The total amount outstanding at June 30, 2021, was $1,028,000.

NOTE 5 RETIREMENT PLANS
A. General Information about the Pension Plans
Plan Descriptions
The Authority participates in the City’s Pension Plans. All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Employee Pension Plans, which are cost-sharing multiple-employer defined benefit pension plans administered by CalPERS. Benefit provisions under the plans are established by state statute and Authority resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services.

PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job related.

ATTACHMENT B