Stanton City Council
March 14, 2023

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
47 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. New Accounting Pronouncements
The City adopted Statement on Governmental Accounting Standards (GASB Statements) No. 87-Leases; No 89-Accounting for Interest Cost Incurred Before the End of a Construction period; No. 90- Majority Equity Interest; No. 93- Replacement of Interbank Offered Rates; and No. 97- Certain Component Unit Criteria for Internal Revenue Code 457 Deferred Compensation Plans. The City implemented GASB No. 87 during fiscal year June 30, 2022. The adoption of the GASB Nos. 89, 90, 93, and 97 did not significantly impact the City.

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 assets 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, 2022
48 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 assets 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.  Deferred inflows related to leases. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

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, 2022
49 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, 2022
50 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, 2022
51 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 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 $150,000 as of June 30, 2022.

A technology equipment reserve has been established through a resolution approved by the City Council. The reserve may be used to provide funding for the timely replacement of technology equipment. If used, this reserve will be replenished with future year-end operating surplus. This technology equipment reserve has a balance of $150,000 as of June 30, 2022.

An emergency disaster contingency reserve has been established through a resolution approved by the City Council. The reserve is calculated at 10% of General Fund operating expenditures (rounded to the next $100,000). 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

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
52 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Assets, Liabilities, Fund Balance and Net Position (Continued) Fund Balances (Continued)
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 $2,900,000 as of June 30, 2022.

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 $5,000,000 as of June 30, 2022.

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 20% (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 $5,700,000 as of June 30, 2022.

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, 2022
53 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, 2022
54 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leases
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.

Lessee: The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $50,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor: The City is a lessor for a noncancellable leases of a portion of real property, as well as, building and roof space. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received.

The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
55 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leases (continued)
Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

M. 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, 2022:

Nonmajor Governmental Fund:

Other Grants $ (61,410)
The Other Grants Special Revenue Fund has a deficit due to intergovernmental revenues not being collected within the City’s period of availability.

B. Excess of Expenditures over Appropriations
The following funds reported expenditures exceeding appropriations at June 30, 2022:

Final Variance with
Budget Actual Final Budget
Nonmajor Governmental Funds:

FaCT Grant Special
Revenue Fund $ 330,603 $ 344,345 $ (13,742)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
56 NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments as of June 30, 2022, 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 $ 58,796,271 $ - $ 58,796,271
Private-Purpose Trust Funds - 7,167,498 7,167,498
Restricted Assets:

Cash and Investments Held in
Pension Trust:

City 3,980,189 - 3,980,189
Cash and Investments With
Fiscal Agents:

Private-Purpose Trust Funds - 1,650,953 1,650,953
Total Cash and Investments $ 62,776,460 $ 8,818,451 $ 71,594,911 Cash and investments at June 30, 2022, consisted of the following:

Cash in Hand $ 600
Deposits With Financial Institutions 11,838,293
Investments 59,756,018
Total Cash and Investments $ 71,594,911

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
57 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, 2022
58 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, 2022:

Remaining Investment Maturities
12 Months 13 to 24 25 to 36 37 to 48
Investment Type or Less Months Months Months Total
Local Agency Investment
Fund (LAIF) $43,390,842 $ - $ - $ - $43,390,842
California Asset Management
Program (CAMP) 5,264,607 - - - 5,264,607
Negotiable Certificates of
Deposit 2,482,790 2,704,106 967,961 - 6,154,857
Municipal Bonds 273,963 493,520 198,040 - 965,523
Held by Fiscal Agents
Pension Trust – Public Agency
Retirement Services 3,980,189 - - - 3,980,189

Total $55,392,391 $3,197,626 $1,166,001 $ - $59,756,018

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
59 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:

Total as of
Investment Type June 30, 2022
Minimum
Legal
Rating S&P Rating
Moody's
Rating
Local Agency Investment Fund
California Asset Management
Program (CAMP)
(LAIF) $ 43,390,842
5,264,607
None
None
Not Rated
AAAm
Not Rated
Not Rated
Negotiable Certificates of Deposit 6,154,857 A/A2 Not Rated Not Rated Municipal Bonds 273,963 A A Not Rated
Municipal Bonds 198,040 A A Not Rated
Municipal Bonds 246,622 A AA Not Rated
Municipal Bonds
Held by Fiscal Agents:
246,898 A A- Not Rated
Pension Trust-Public Agency
Retirement Services 3,980,189 None Not Rated Not Rated
Total Investments $ 59,756,018
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, 2022
60 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, 2022
61 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, 2022
62 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2022:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Negotiable Certificates of Deposits $ - $6,154,857 $ - $ 6,154,857 Municipal Bonds - 965,523 - 965,523
Total Leveled Investments $ - $7,120,380 $ - 7,120,380
Investments Not Subject to
Fair Value Hierarchy:

Local Agency Investment
Fund (LAIF)

43,390,842
California Asset Management
Program (CAMP)

5,264,607
Held by Fiscal Agent:

Pension Trust – Public Agency
Retirement Services

3,980,189

Total $59,756,018

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
63 NOTE 4 CAPITAL ASSETS
Governmental Activities
A summary of changes in governmental activities - capital assets at June 30, 2022, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 38,732,365 $ - $ (326,000) $38,406,365
Construction in process - 426,706 - 426,706
Total non-depreciable 38,732,365 426,706 (326,000) 38,833,071 Depreciable:

Buildings and improvements 47,970,032 - - 47,970,032
Equipment 888,244 16,270 (11,358) 893,156
Vehicles 910,798 99,393 (50,350) 959,841
Infrastructure 43,773,464 - - 43,773,464
Total depreciable
capital assets 93,542,538 115,663 (61,708) 93,596,493
Less accumulated
depreciation for:

Buildings and improvements (12,253,100) (1,128,459) - (13,381,559) Equipment (808,761) (36,821) 11,358 (834,224)
Vehicles (631,930) (96,494) 50,350 (678,074)
Infrastructure (26,474,206) (1,100,609) - (27,574,815)

Total accumulated
depreciation (40,167,997) (2,362,383) 61,708 (42,468,672) Total depreciable
capital assets, net 53,374,541 (2,246,720) - 51,127,821 Total capital assets, net $ 92,106,906 $(1,820,014) $ (326,000) $89,960,892 Depreciation expense was charged in the following functions in the Statement of Activities:

General Government $ 159,646
Public Safety 184,786
Community Development 295,939
Public Works 1,303,769
Culture and Recreation 418,243
Total $2,362,383

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
64 NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activity
A summary of changes in the business-type activity - capital assets at June 30, 2022, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Depreciable:

Sanitary plant $ 6,748,710 $ - $ - $6,748,710
General plant 654,840 - - 654,840
Total depreciable
capital assets 7,403,550 - - 7,403,550
Less accumulated
depreciation for:

Sanitary plant (2,236,492) (130,377) - (2,366,869)
General plant (196,450) (13,097) - (209,547)

Total accumulated
depreciation (2,432,942) (143,474) - (2,576,416)
Total depreciable
capital assets, net 4,970,608 (143,474) - 4,827,134
Total capital assets, net $ 4,970,608 $(143,474) $ - $4,827,134 Depreciation expense of $143,474 was charged to the sewer function/program.

NOTE 5 INTERFUND TRANSACTIONS
Due From/DueTo Other Funds
Receivable Fund

Payable Fund
Total
Outstanding
General Fund Other Governmental Funds $18,827
The amounts due to the General Fund is a result of short-term cash deficit balances in grant funds that will be remedied when reimbursements are received from granting agencies during the subsequent fiscal year.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
65 NOTE 5 INTERFUND TRANSACTIONS (CONTINUED)
Advances To/Advances From Other Funds
Receivable Fund

Payable Fund
Total
Outstanding
General Fund
Lighting and Median
Maintenance Special
Revenue Fund

$795,413
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.

Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2022, is as follows:

Transfers Out
Transfers In
General
Fund
Housing
Authority ARPA
Nonmajor
Governmental
Funds
Sewer
Enterprise
Fund Total
General Fund $ - 890,000 - 730,672 - 1,620,672
Housing Authority 19,843 - - - - 19,843
ARPA - - - 11,360 - 11,360
Nonmajor
Governmental
Funds 175,184 - 55,979 434,953 18,776 684,892
Internal Service
Funds 131,330 - - - - 131,330

Total $ 326,357 890,000 55,979 1,176,985 18,776 2,468,097 During the fiscal year ended June 30, 2022, interfund transfers were made for the following purposes:
(1) $19,843 was transferred from the General Fund to the Housing Authority Fund for the reimbursement of legal expenditures for the Tina Pacific affordable housing project. (2) $100,184 was transferred from the General Fund to the Other Governmental Funds (Families and Communities Together (FaCT) Grant Special Revenue Fund, Senior Transportation Special Revenue Fund, and Stanton Central Park Maintenance Special Revenue Fund) for the difference between program expenditures and the maximum funding provided by grants or donors. (3) $75,000 was transferred from the General Fund to the Other Governmental Funds (Capital Projects Fund) to provide funding for the Fiscal Year 2021/22 Citywide Street Rehabilitation project. (4) $131,330 was transferred from the General Fund to the Internal Service Funds (Liability/Risk Management Fund) to provide funding for an assessment of the general liability program from Public Entity Risk Management Authority (PERMA) and property insurance premium costs from California Joint Powers Insurance Authority that exceeded the City's budgeted amount. (5) $890,000 was transferred from the Housing Authority Special Revenue Fund to reimburse the General Fund for the purchase of the property located at 11870 Beach Boulevard.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
66 NOTE 5 INTERFUND TRANSACTIONS (CONTINUED)
(6) $55,997 was transferred from the ARPA Special Revenue Fund to the Other Governmental Funds (Capital Projects Fund) to provide funding for the Park Master Plan and Sheriff's Substation Flooring Replacement projects.
(7) $730,672 was transferred from Other Governmental Funds (Gas Tax Special Revenue Fund, Protective Services Tax Special Revenue Fund, and Supplemental Law Enforcement Program Special Revenue Fund) to reimburse the General Fund for street maintenance, law enforcement, and fire protection costs.
(8) $11,360 was transferred from the Other Governmental Funds (CDBG Fund) to reimburse the ARPA Special Revenue Fund for small business loan program expenditures. (9) $434,953 was transferred from various Other Governmental Funds to the Other Governmental Funds (Capital Projects Fund) to provide funding for various projects included in the City's Fiscal Year 2021/22 Capital Improvement Program.
(10) $18,776 was transferred from the Sewer Enterprise Fund to Other Governmental Funds (Capital Projects Fund) to provide funding for the Sewer Master Plan Update project.

NOTE 6 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2022, was as follows:

Rodeo 39 Marketplace LLC $ 1,687,195
Stanton Accessible Apartments Construction 391,184
Housing 102,565
First-Time Home Buyer 40,000
Housing Rehabilitation 978,000
Employee Computer 2,582
Allowance for Doubtful Accounts (391,184)
Total $ 2,810,342
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, 2022, the City reduced the amount due on the loan by $261,049 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, 2022, the outstanding balance on the loan was $1,687,195.

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, 2022, was $391,184, with an allowance for the forgivable amount of $391,184.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
67 NOTE 6 NOTES AND LOANS RECEIVABLE (CONTINUED)
Housing loans receivable of $102,565 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, 2022, 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, 2022, was $978,000.

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, 2022, was $2,582.

NOTE 7 LONG-TERM LIABILITIES
Governmental Activities
The following is a summary of long-term liability transactions as of June 30, 2022:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Claims payable $ 203,214 $ 13,870 $(203,214) $ 13,870 $ 13,870 Compensated absences 282,253 206,650 (168,754) 320,149 163,469 Total $ 485,467 $220,520 $(371,968) $334,019 $177,339
Claims Payable
The amount of claims payable for governmental activities at June 30, 2022, was $13,870. 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 $320,149 at June 30, 2022. This liability is being liquidated in the Employee Benefits Internal Service Fund.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
68 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, 2022:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated absences $ 2,704 $ 1,022 $(2,958) $ 768 $ 768 Total $ 2,704 $ 1,022 $(2,958) $ 768 $ 768
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 $768 at June 30, 2022.

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 124 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, 2022
69 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 $42,832,636. 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 $19,599,700 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, 2022, the amount of these liabilities was $13,870. 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 2021-2022.

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

Year Ended
June 30,
Claims Payable
July 1
Fiscal Year Claims
and Changes
in Estimates
Claims
Payments
Claims Payable
June 30
2021 $ 66,551 $ 176,625 $ (39,962) $ 203,214
2022 203,214 13,870 (203,214) 13,870

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
70 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 $38,440 to the City of Anaheim for the fiscal year ended June 30, 2022.

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, 2022, the City paid $5,133,548 to the Fire Authority.

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2022. 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, 2022
71 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, 2022
72 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, 2021, are summarized as follows:

Miscellaneous
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 7.000% 7.000% 6.750%
Required Employer Contribution
Rates:

Normal Cost Rate 10.880% 8.650% 7.590%
Payment of Unfunded Liability
and Extra Payments $ 531,359 $ 1,924 $ 5,388
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 $ 103,850
(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, 2022
73 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 $740,035 and $103,850 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
Activities
Deferred Outflows of Resources:

Miscellaneous Plan $1,232,109
Safety Plan 2,668,866
Total Deferred Outflows of Resources $3,900,975

Deferred Inflows of Resources:

Miscellaneous Plan $3,304,222
Safety Plan 2,236,385
Total Deferred Inflows of Resources $5,540,607

Net Pension Liability (Asset):

Miscellaneous Plan $3,483,253
Safety Plan (1,552,129)
Total Net Pension Liability (Asset) $1,931,124

Pension Expense (Credit):

Miscellaneous Plan $1,286,772
Safety Plan (2,829,323)
Total Pension Expense (Credit) $(1,542,551)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
74 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2022, 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 (Asset)
Miscellaneous $ 3,483,253
Safety (1,552,129)
Total Net Pension Liability $ 1,931,124
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, 2021, 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, 2020, rolled forward to June 30, 2021, 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, 2020 and 2021, was as follows:

Miscellaneous Safety
Proportion - June 30, 2020 0.14298% 0.00935%
Proportion - June 30, 2021 0.18344% (0.04423)%
Change - Increase (Decrease) 0.04046% (0.05358)%

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
75 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 740,035

$ -
Change in proportion 101,465 (10,350)
Difference in actual contributions vs.
proportionate share of contributions

-

(253,176)
Difference between expected and
actual experience

390,609

-
Differences between projected and
actual earnings on plan investments

-

(3,040,696)
Change in assumptions - -

Total $1,232,109 $ (3,304,222)
Safety
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 103,850

$ -
Change in proportion 633,221 (958,706)
Difference in actual contributions vs.
proportionate share of contributions

1,007,980

(1,012,500)
Difference between expected and
actual experience

-

(265,179)
Differences between projected and
actual earnings on plan investments

923,815

-
Change in assumptions - -

Total $ 2,668,866 $ (2,236,385)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
76 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The amount of $740,035 and $103,850 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, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

Miscellaneous

Safety
2023 $ (627,082) $ (65,119)
2024 (644,237) (41,021)
2025 (700,536) 180,548
2026 (840,293) 254,223
$(2,812,148) $ 328,631
Actuarial Assumptions
The total pension liability was based on the following assumptions:

Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
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, 2022
77 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, 2022
78 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 $ 6,746,287 $ 598,272
Current Discount Rate 7.15% 7.15%
Net Pension Liability (Asset) $ 3,483,253 $ (1,552,129) 1% Increase 8.15% 8.15%
Net Pension Liability (Asset) $ 785,749 $ (3,318,417)
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
The City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2022.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
79 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, 2021, the following current and former employees were covered by the benefit terms under the plan:

Active employees 41
Inactive employees or beneficiaries currently
receiving benefits 19
Total 60
Benefits
The City pays the greater of $215 per month or the PEMHCA minimum. The PEMHCA minimum was $143 and $149 for 2021 and 2022, 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, 2022, the City made contributions of $26,356, 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, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, rolled forward to June 30, 2022, 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, 2022
80 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) B. Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Entry-Age Normal Cost Method,
Actuarial Cost Method Level Percent of Pay
Actuarial Assumptions:

Discount Rate 6.25%
Inflation 2.50%
Projected Salary Increase 2.75% Per Year
Expected Long-Term Investment Rate of Return 6.25%
Health-Care Cost Trend Rates 4.00% Per Year
Pre-Retirement Turnover Derived from 2017 CalPERS
turnover for miscellaneous
employees
Mortality Derived from 2017 CalPERS active
mortality for miscellaneous
employees and 2017 CalPERS
mortality for retired safety
employees
The actuarial assumptions used in the June 30, 2021 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:

Asset Class
Percentage
of Portfolio
Long-Term
Expected Real
Rate of Return
All Equities 40.00% 7.545%
All Fixed Income 43.00% 4.250%
Real Estate Investment Trusts 8.00% 7.250%
All Commodities 4.00% 7.545%
Treasury Inflation Protected Securities 5.00% 3.000%
Total 100.00%

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
81 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 6.25%. 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 33 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:

Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net OPEB
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/20
Measurement Date 6/30/20 $1,020,285

$ 884,454

$ 135,831
Changes During the Period:

Service Cost 20,853 - 20,853
Interest Cost 64,483 - 64,483
Expected Investment Income - 56,040 (56,040)
Employer Contributions - 26,356 (26,356)
Changes of Benefit Terms - - -
Administrative Expenses - (322) 322
Actual minus expected benefit payments (6,685) - (6,685) Benefit Payments (70,646) (70,646) -
Assumption Changes 61,360 - 61,360
Plan Experience (110,610) - (110,610)
Investment Experience - 117,810 (117,810)
Recognized Deferred Resources - - -
Employer Contributions Subsequent
to Measurement Date -

-

-
Net Changes in Fiscal Year 2020-21 (41,245) 129,238 (170,483) Balance at Fiscal Year Ending 6/30/21
Measurement Date 6/30/21 $ 979,040

$1,013,692

$ (34,652)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
82 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 5.25%
Net OPEB Liability $ 73,739

Current Discount Rate 6.25%
Net OPEB Liability (Asset) $ (34,652)

1% Increase 7.25%
Net OPEB Liability (Asset) $(124,794)
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:
1% Decrease 5.25%
Net OPEB Liability $ (98,720)

Current Trend 6.25%
Net OPEB Liability (Asset) $ (34,652)

1% Increase 7.25%
Net OPEB Liability (Asset) $ 42,930
D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense of $44,177. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Difference between expected and
actual experience

$ 103,455

$ (117,918)
Change of assumptions 320,047 -
Net difference between projected and
actual earnings on investments

5,081

(96,149)

Total $ 428,583 $ (214,067)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
83 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 Ended
June 30
2023 $ 14,559
2024 14,360
2025 15,307
2026 13,682
2027 37,244
Thereafter 119,364
$214,516
E. Payable to the OPEB Plan
The City had no outstanding amount of contributions to the OPEB plan as required for the year ended June 30, 2022.

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, 2022, were as follows:

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
84 NOTE 13 CLASSIFICATION OF FUND BALANCES (CONTINUED)
General
Fund
Housing
Authority
Special
Revenue
Fund
Lighting and
Median Maint
Special
Revenue
Fund
Nonmajor
Governmental
Funds Total
Nonspendable:

Prepaid items $ 46,681 $ - $ - $ - $ 46,681
Notes and loans receivable 1,792,342 - - - 1,792,342
Advances to other funds 795,413 - - - 795,413
Total nonspendable 2,634,436 - - - 2,634,436
Restricted for:

Low-and moderate income
housing - 13,432,239 - - 13,432,239
Park projects - - - 3,907,572 3,907,572
Street lighting and median
maintenance - - 907,796 - 907,797
Streets and roads
Maintenance and capital
projects - - - 3,925,640 3,925,640
Public safety programs - - - 484,415 484,415
Housing rehabilitation
projects for low and
moderate income persons - - - 211,341 211,341
Pollution remediation - - - 178,056 178,056
New community center - - - 169,388 169,388
New police services facility - - - 153,047 153,047
Fire protection - - - 7,730 7,730
Senior mobility program - - - 61,326 61,326
Disability access program - - - 53,197 53,197
Total restricted - 13,432,239 907,796 9,151,713 23,491,748 Committed for:

Emergency equipment
and maintenance 150,000 - - - 150,000
Technology equipment 150,000 - - - 150,000
Emergency disaster
contingency 2,900,000 - - - 2,900,000
Capital improvement 5,000,000 - - - 5,000,000
Beautification projects 190,000 - - - 190,000
Neighborhood preservation
projects 88,500 - - - 88,500
Other public benefit projects 1,377,796 - - - 1,377,796 Total committed 9,856,296 - - - 9,856,296
Assigned for:

Capital improvement projects - - - 244,243 244,243
2020 Town Center Specific
plan 79,865 - - - 79,865
North SPA Navigation
Center Agreement 43,935 - - - 43,935
Local Hazard Mitigation Plan 4,175 - - - 4,175
Housing and Safety Element
Plan Update 3,050 - - - 3,050
Stanton Park Adult Fitness
Equipment Site Plan 3,885 - - - 3,885
Overhead Cost Allocation
Plan and User Fee Study 5,675 - - - 5,675
Other purposes 29,000 - - - 29,000
Total assigned 169,585 - - 244,243 413,827
Unassigned for:

Economic uncertainty 5,700,000 - - - 5,700,000
Unassigned 10,126,042 - - (61,410) 10,064,632
Total unassigned 15,826,042 - - (61,410) 15,764,632
$28,486,359 $13,432,239 $ 907,796 $ 9,334,546 $52,160,940

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
85 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, 2022, were as follows:

Beginning Ending Due within
Balance Additions Deletions Balance One Year
Bonds Payable
Tax Allocation Bonds
(TAB) 2016 Series A $ 5,805,000 $ - $ (365,000)$ 5,440,000 $ 380,000 Add Bond Premium 397,316 - (30,563) 366,753 -
TAB, 2016 Series B 10,735,000 - (680,000) 10,055,000 690,000 Less Issuance
Discounts (68,095) - 5,238 (62,857) -
TAB, 2016 Series C 9,695,000 - - 9,695,000 -
Add Bond Premium 680,456 - (35,813) 644,643 -
TAB, 2016 Series D 21,720,000 - (1,180,000) 20,540,000 1,205,000 Less Issuance
Discounts (427,092) - 22,479 (404,613) -
TAB, 2020-A Payable 7,935,000 - (265,000) 7,670,000 360,000 Add Bond Premium 1,624,911 - (207,885) 1,417,026 -
Total $58,097,496 $ - $(2,736,544)$55,360,952 $2,635,000

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
86 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. 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 $5,440,000 at June 30, 2022.

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

Year Ending June 30, Principal Interest Total
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 345,000 137,400 482,400
2028-2032 1,970,000 440,794 2,410,794
2033-2036 1,810,000 112,456 1,922,456
Total $ 5,440,000 $ 1,396,675 $ 6,836,675
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.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
87 NOTE 14 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Taxable Tax Allocation Refunding Bonds, 2016 Series B (CONTINUED) 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. 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 $10,055,000 at June 30, 2022.

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

Year Ending June 30, Principal Interest Total
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 630,000 293,269 923,269
2028-2032 3,555,000 1,067,319 4,622,319
2033-2036 3,395,000 286,997 3,681,997
Total $ 10,055,000 $ 3,016,564 $ 13,071,564

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
88 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. 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, 2022.

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

Year Ending June 30, Principal Interest Total
2023 $ - $ 484,750 $ 484,750
2024 - 484,750 484,750
2025 - 484,750 484,750
2026 - 484,750 484,750
2027 - 484,750 484,750
2028-2032 - 2,423,750 2,423,750
2033-2037 1,750,000 2,380,000 4,130,000
2038-2040 7,945,000 818,625 8,763,625
Total $ 9,695,000 $ 8,046,125 $ 17,741,125

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
89 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. 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 $20,540,000 at June 30, 2022.

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

Year Ending June 30, Principal Interest Total
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 1,360,000 601,325 1,961,325
2028-2032 6,925,000 2,167,175 9,092,175
2033-2037 4,380,000 1,016,813 5,396,813
2038-2040 2,830,000 242,250 3,072,250
Total $ 20,540,000 $ 6,847,182 $ 27,387,182

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
90 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. 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 $7,670,000 at June 30, 2022.

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

Year Ending June 30, Principal Interest Total
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 605,000 213,100 818,100
2028-2032 3,110,000 679,800 3,789,800
2033-2036 1,915,000 156,900 2,071,900
Total $ 7,670,000 $ 2,127,400 $ 9,797,400

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
91 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.

NOTE 16 SUBSEQUENT EVENTS
Management has evaluated subsequent events through February 16, 2023 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

ATTACHMENT A

92 This page intentionally left blank

ATTACHMENT A

93 REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)

ATTACHMENT A

Fiscal year ended June 30 2022 2021 2020 2019 2018
Measurement period June 30 2021 2020 2019 2018 2017
Proportion of the net pension liability 0.18344% 0.14298% 0.13918% 0.13424% 0.13038% Proportionate share of the net pension
liability $ 3,483,253 $ 6,031,096 $ 5,573,525 $ 5,059,084 $ 5,139,562 Covered payroll $ 3,145,319 $ 2,740,004 $ 2,544,215 $ 2,644,646 $ 2,188,343 Proportionate Share of the net pension
liability as percentage of covered payroll 110.74% 220.11% 219.07% 191.30% 234.86% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 85.91% 74.82% 76.17% 75.26% 73.31% 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 eight years are shown.

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Miscellaneous Pension Plan Year Ended June 30, 2022
Last 10 Fiscal Years *
94 ATTACHMENT A

Fiscal year ended June 30 2017 2016 2015
Measurement period June 30 2016 2015 2014
Proportion of the net pension liability 0.12626% 0.11916% 0.14740% Proportionate share of the net pension
liability $ 4,386,167 $ 3,269,137 $ 3,642,924
Covered payroll $ 2,097,117 $ 1,968,200 $ 1,884,740
Proportionate Share of the net pension
liability as percentage of covered payroll 209.15% 166.10% 193.29% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 74.06% 82.31% 80.06%

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Miscellaneous Pension Plan Last 10 Fiscal Years * (Continued)
Year Ended June 30, 2022
95 ATTACHMENT A

Fiscal year ended June 30 2022 2021 2020 2019 2018
Contractually required contribution
(actuarially determined) 740,035 $ 645,052 $ 601,444 $ 469,444 $ 402,799 $ Contributions in relation to the actuarially
determined contributions (841,240) (695,052) (601,444) (469,444) (402,799) Contribution deficiency (excess) (101,205) $ (50,000) $ - $ - $ - $ Covered payroll 3,562,190 $ 3,145,319 $ 2,740,004 $ 2,544,215 $ 2,644,646 $ Contributions as a percentage of covered payroll 23.62% 22.10% 21.95% 18.45% 15.23% Notes to schedule:

Valuation date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 0.000% 2.500% 2.625% 2.750% 2.750%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 0.00% (3) 7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 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 eight years are shown.

Year Ended June 30, 2022

CITY OF STANTON
Schedule of Contributions - CalPERS Miscellaneous Pension Plan Last 10 Fiscal Years *
96 ATTACHMENT A

Fiscal year ended June 30 2017 2016 2015
Contractually required contribution
(actuarially determined) 327,584 $ 288,043 $ 745,208 $
Contributions in relation to the actuarially
determined contributions (327,584) (288,043) (745,208)
Contribution deficiency (excess) -$ - $ - $
Covered payroll 2,188,343 $ 2,097,117 $ 1,968,200 $
Contributions as a percentage of covered payroll 14.97% 13.74% 37.86% Notes to schedule:

Valuation date 6/30/2014 6/30/2013 6/30/2012
Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age
Amortization method (1) (1) (1)
Asset valuation method Fair Value Fair Value
15 Year
Smoothed
Market
Method
Inflation 2.750% 2.750% 2.750%
Salary increases (2) (2) (2)
Investment rate of return 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4)
Mortality (5) (5) (5)
Year Ended June 30, 2022

CITY OF STANTON
Schedule of Contributions - CalPERS Miscellaneous Pension Plan Last 10 Fiscal Years * (Continued)
97 ATTACHMENT A

Fiscal year ended June 30 2022 2021 2020 2019 2018
Measurement period June 30 2021 2020 2019 2018 2017
Proportion of the net pension liability -0.04423% 0.00935% 0.00763% 0.09504% 0.09231% Proportionate share of the net pension
liability (asset) $ (1,552,129) $ 622,970 $ 476,073 $ 5,576,370 $ 5,515,903 Covered payroll -$ -$ -$ -$ -$
Proportionate Share of the net pension
liability as percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability (Asset) -109.72% 96.21% 97.30% 68.32% 68.32% 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 eight years are shown.

Year Ended June 30, 2022

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Safety Pension Plan Last 10 Fiscal Years *
98 ATTACHMENT A

Fiscal year ended June 30 2017 2016 2015
Measurement period June 30 2016 2015 2014
Proportion of the net pension liability 0.09501% 0.09572% 0.08756% Proportionate share of the net pension
liability $ 4,920,618 $ 3,944,111 $ 3,284,432
Covered payroll -$ -$ -$
Proportionate Share of the net pension
liability as percentage of covered payroll 0.00% 0.00% 0.00% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 71.79% 77.44% 81.42%
Year Ended June 30, 2022

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Safety Pension Plan Last 10 Fiscal Years * (Continued)
99 ATTACHMENT A

Fiscal year ended June 30 2022 2021 2020 2019 2018
Contractually required contribution (actuarially determined) 103,850 $ 80,284 $ -$ 559,861 $ $ 469,366 Contributions in relation to the actuarially
determined contributions (80,284) (103,850) - (5,540,542) (469,366) Contribution deficiency (excess) -$ - $ - $ (4,980,681) $ - $ Covered payroll -$ -$ -$ -$ -$
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Notes to schedule:

Valuation date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 0.000% 2.500% 2.625% 2.750% 2.750%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 0.00% (3) 7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 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 eight years are shown.

CITY OF STANTON
Schedule of Contributions - CalPERS Safety Pension Plan Last 10 Fiscal Years *
Year Ended June 30, 2022
100

ATTACHMENT A

Fiscal year ended June 30 2017 2016 2015
Contractually required contribution (actuarially determined) 226,818 $ 188,537$ 157,551$ Contributions in relation to the actuarially
determined contributions (188,537) (226,818) (157,551)
Contribution deficiency (excess) -$ - $ - $
Covered payroll -$ -$ -$
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% Notes to schedule:

Valuation date 6/30/2014 6/30/2013 6/30/2012
Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age
Amortization method (1) (1) (1)
Asset valuation method Fair Value Fair Value
15 Year
Smoothed
Market
Method
Inflation 2.750% 2.750% 2.750%
Salary increases (2) (2) (2)
Investment rate of return 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4)
Mortality (5) (5) (5)

CITY OF STANTON
Schedule of Contributions - CalPERS Safety Pension Plan Last 10 Fiscal Years * (Continued)
Year Ended June 30, 2022
101

ATTACHMENT A

Fiscal Year End 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability
Service cost 20,853 $ 20,295 $ 11,308 $ 11,005 $ 10,710 $ Interest on the total OPEB Liability 64,483 64,039 33,517 33,513 33,968 Actual and expected experience difference (110,610) - 124,860 - - Changes in assumptions 61,360 - 353,544 - -
Actual minus expected benefit payment (6,685) (659) 14,271 - - Benefit payments (77,577) (70,646) (52,347) (51,136) (52,812) Net change in total OPEB liability (41,245) 6,098 485,153 (6,618) (8,134) Total OPEB liability - beginning 1,020,285 1,014,187 529,034 535,652 543,786 Total OPEB liability - ending (a) 979,040 $ 1,020,285 $ 1,014,187 $ 529,034 $ 535,652 $ Plan Fiduciary Net Position
Contribution - employer 26,356 $ 25,640 $ -$ -$ 52,812 $ Net investment income 173,850 47,942 60,321 54,438 59,303 Benefit payments (70,646) (77,577) (52,347) (51,136) (52,812) Administrative expense (437) (322) (189) (1,623) (432)
Net change in plan fiduciary net position 129,238 (4,432) 7,785 1,679 58,871 Plan fiduciary net position - beginning 884,454 888,886 881,101 879,422 820,551 Plan fiduciary net position - ending (b) 1,013,692 $ 884,454 $ 888,886 $ 881,101 $ 879,422 $ Net OPEB liability (asset) - ending (a)-(b) (34,652) $ 135,831 $ 125,301 $ (352,067) $ (343,770) $ Plan fiduciary net position as a percentage
of the total OPEB liability (asset) 103.54% 86.69% 87.65% 166.55% 164.18% Employee payroll 3,145,319 $ 2,740,004 $ 2,544,215 $ 2,664,646 $ 2,188,343 $ Net OPEB liability (asset) as a
percentage of employee payroll -1.10% 4.96% 4.92% -13.21% -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 that plan's liability was utilized for the measurement date June 30, 2019, and was not included.
* - Fiscal year 2017-18 was the 1st year of implementation, therefore only five years are shown.

CITY OF STANTON
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios Year Ended June 30, 2022
Last 10 Fiscal Years *
102

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments 21,162,000 $ 22,492,500 $ 24,105,459 $ 1,612,959 $ Licenses and permits 1,311,500 1,311,500 1,037,171 (274,329) Intergovernmental 376,275 665,515 751,106 85,591
Charges for services 1,954,320 2,026,752 2,494,435 467,683 Fines and forfeitures 411,570 356,800 468,222 111,422
Investment income (loss) 201,570 161,570 (354,337) (515,907) Rental income 28,305 82,855 84,033 1,178
Miscellaneous 194,025 194,825 22,423 (172,402)
Total revenues 25,639,565 27,292,317 28,608,512 1,316,195

EXPENDITURES
Current:

General government 3,360,870 3,796,590 3,731,606 64,984 Public safety 17,919,665 17,703,719 17,480,621 223,098
Community development 2,367,110 2,537,702 1,877,724 659,978 Public works 1,208,155 1,198,340 1,075,440 122,900
Culture and recreation 1,365,595 1,497,260 1,372,825 124,435 Capital outlay 60,600 17,670 77,031 (59,361)
Total expenditures 26,281,995 26,751,281 25,615,247 1,136,034

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 541,036 (642,430) 2,993,265 2,452,229

OTHER FINANCING SOURCES
(USES)
Transfer in 730,000 1,621,951 1,620,672 (1,279)
Transfer out (68,805) (320,535) (326,357) (5,822)
Total other financing sources (uses) 661,195 1,301,416 1,294,315 (7,101) Net change in fund balance $ 1,842,452 18,765 $ 4,287,580 2,445,128 $ Fund balance, beginning of year 24,198,779
Fund balance, end of year 28,486,359 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund
For the Year Ended June 30, 2022
103

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Investment income (loss) 150,000 $ 50,000 $ (120,362) $ (170,362) $ Rental income 500,000 500,000 616,454 116,454
Miscellaneous 2,000 2,000 14,006 12,006
Total revenues 652,000 552,000 510,098 (41,902)

EXPENDITURES
Current:

General government 279,565 279,565 172,135 107,430
Public safety 297,960 2,437,790 111,593 2,326,197
Community development 508,075 815,575 756,657 58,918
Capital outlay - 2,600,000 - 2,600,000
Total expenditures 1,085,600 6,132,930 1,040,385 5,092,545

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,580,930) (433,600) (530,287) 5,050,643

OTHER FINANCING SOURCES
(USES)
Sale of capital assets - 682,000 756,902 74,902
Transfer in - - 19,843 19,843
Transfer out (890,000) - (890,000) -
Total other financing sources (uses) - (208,000) (113,255) 94,745 Net change in fund balance $ (5,788,930) (433,600) $ (643,542) 5,145,388 $ Fund balance, beginning of year 14,075,781
Fund balance, end of year 13,432,239 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Housing Authority Special Revenue Fund
For the Year Ended June 30, 2022
104

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments 577,055 $ 641,550 $ 741,992 $ 100,442 $ Intergovernmental 500 500 1,016 516
Charges for services 200,000 200,000 203,789 3,789
Investment income 8,000 8,000 - (8,000)
Total revenues 785,555 850,050 946,797 96,747

EXPENDITURES
Current:

Public safety 807,500 820,925 499,391 321,534
Debt service:

Principal retirement 164,025 164,025 - 164,025
Interest and fiscal charges 16,570 16,570 12,943 3,627
Total expenditures 988,095 1,001,520 512,334 489,186
Net change in fund balance $ (151,470) (202,540) $ 434,463 585,933 $ Fund balance, beginning of year 473,333
Fund balance, end of year 907,796 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Lighting and Median Maintenance Special Revenue Fund
For the Year Ended June 30, 2022
105

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental $ 4,283,205 100,850 $ 1,246,918 $ (3,036,287) $ Total revenues 100,850 4,283,205 1,246,918 (3,036,287)

EXPENDITURES
Current:

General government 100,850 494,547 434,348 60,199
Public safety - 503,105 406,925 96,180
Community development - 104,648 154,562 (49,914)
Public works - 21,181 23,330 (2,149)
Culture and recreation - 167,479 172,686 (5,207)
Capital outlay 2,800,000 - 10,448 2,789,552
Total expenditures 100,850 4,090,960 1,202,299 2,888,661

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 192,245 - 44,619 (147,626)

OTHER FINANCING SOURCES
(USES)
Transfer in - - 11,360 11,360
Transfer out - (240,000) (55,979) 184,021
Total other financing sources (uses) - (240,000) (44,619) 195,381 Net change in fund balance (47,755) -$ $ - 47,755 $
Fund balance, beginning of year -
Fund balance, end of year -$

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual American Rescue Plan Act (ARPA) Special Revenue Fund
For the Year Ended June 30, 2022
106

ATTACHMENT A

CITY OF STANTON

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
107
JUNE 30, 2022
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

108
This page intentionally left blank

ATTACHMENT A

109

SUPPLEMENTARY INFORMATION

ATTACHMENT A

110
This page intentionally left blank

ATTACHMENT A

111

GENERAL FUND

ATTACHMENT A

112

CITY OF STANTON

DESCRIPTION OF GENERAL FUNDS
JUNE 30, 2022
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 Use Tax – To account for sales taxes provided by Measure GG, which imposes an additional 1% sales tax available for general purposes.

Expendable Deposits Fund – To account for refundable deposits collected from developers to fund developer funded activities.

ATTACHMENT A

Transaction Total
and Use Expendable General
General Tax Deposits Fund
ASSETS
Cash and investments 25,027,111 $ (367,616) $ (14,553) $ 24,644,942 $ Receivables:

Accounts 422,334 - 112,005 534,339
Interest 60,575 - - 60,575
Taxes 1,246,368 1,069,207 - 2,315,575
Prepaid costs 46,681 - - 46,681
Due from other funds 18,827 - - 18,827
Due from other governments 256,404 - - 256,404
Notes and loans receivable 1,792,342 - - 1,792,342
Advances to other funds - 795,413 - 795,413
Total assets $ 29,666,055 701,591 $ 97,452 $ 30,465,098 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 1,015,522 $ 180,856 $ 8,346 $ 1,204,724 $ Accrued liabilities 491,531 - - 491,531
Unearned revenue - 33,529 - 33,529
Total liabilities 180,856 1,540,582 8,346 1,729,784
Deferred inflows of resources:

Unavailable revenue 136,950 - 112,005 248,955
Total deferred inflows
of resources - 136,950 112,005 248,955
Fund Balances (Deficits):

Nonspendable 2,634,436 - - 2,634,436
Committed 9,856,296 - - 9,856,296
Assigned 169,585 - - 169,585
Unassigned 15,328,206 520,735 (22,899) 15,826,042
Total fund balances 27,988,523 520,735 (22,899) 28,486,359 Total liabilities, deferred inflows
of resources and fund balances $ 29,666,055 701,591 $ 97,452 $ 30,465,098 $

CITY OF STANTON
Combining Balance Sheet
General Fund
June 30, 2022
113

ATTACHMENT A

Transaction Total
and Use Expendable General
General Tax Deposits Fund

REVENUES
Taxes and assessments 18,111,724 $ 5,993,735 $ -$ 24,105,459 $ Licenses and permits 1,037,171 - - 1,037,171
Intergovernmental 751,106 - - 751,106
Charges for services 2,408,235 - 86,200 2,494,435
Fines and forfeitures 468,222 - - 468,222
Investment income (loss) (354,337) - - (354,337)
Rental income 84,033 - - 84,033
Miscellaneous - 22,423 - 22,423
Total revenues 22,528,577 5,993,735 86,200 28,608,512

EXPENDITURES
Current:

General government 3,662,739 - 68,867 3,731,606
Public safety 11,775,161 5,705,460 - 17,480,621
Community development 1,861,462 5,310 10,952 1,877,724
Public works 1,075,440 - - 1,075,440
Culture and recreation 1,372,825 - - 1,372,825
Capital outlay - 77,031 - 77,031
Total expenditures 19,824,658 5,710,770 79,819 25,615,247

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 282,965 2,703,919 6,381 2,993,265

OTHER FINANCING SOURCES (USES)
Transfer in 1,620,672 - - 1,620,672
Transfer out (131,330) (175,184) (19,843) (326,357)
Total other financing sources (uses) 1,445,488 (131,330) (19,843) 1,294,315 Net change in fund balance 4,149,407 151,635 (13,462) 4,287,580 Fund balance (deficit), beginning of year 23,839,116 369,100 (9,437) 24,198,779 Fund balance (deficit), end of year 27,988,523 $ 520,735 $ (22,899) $ 28,486,359 $

CITY OF STANTON
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance General Fund
For the Year Ended June 30, 2022
114

ATTACHMENT A

OTHER GOVERNMENTAL FUNDS
115

ATTACHMENT A

CITY OF STANTON
116

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022

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.

Supplemental Law Enforcement Program – 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.

Other Grants – To account for revenues and expenditures associated with project-specific grants. The use of the revenues is restricted according to the terms of the grant agreement and/or 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
117

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2022

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.

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 in Lieu Fees – To account for the financial resources segregated for park or recreational purposes, pursuant to Stanton Municipal Code Section 19.42.090.

ATTACHMENT A

Supplemental Air
Law Quality
Protective Enforcement Improvement FaCT
Gas Tax Services Program Program Grant
Cash and investments $ 1,348,974 $ 368,508 - $ $ 195,094 $ 32,719 Receivables:

Interest - - - - -
Taxes - 7,730 - - -
Due from other governments - 167,855 - 13,015 6,512
Total assets $ 7,730 1,516,829 $ 368,508 $ 208,109 $ 39,231 $ Liabilities:

Accounts payable 40,402 $ -$ -$ $ 17,037 $ 39,231
Due to other funds - - - - -
Total liabilities - 40,402 - 17,037 39,231
Deferred inflows of resources:

Unavailable revenue - - - 13,015 -
Total deferred inflows
of resources - - - 13,015 -
Fund Balances (Deficits):

Restricted 1,476,427 7,730 368,508 178,057 -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 7,730 1,476,427 368,508 178,057 -
Total liabilities, deferred
inflows and fund balances $ 7,730 1,516,829 $ 368,508 $ 208,109 $ 39,231 $ Special Revenue Funds

CITY OF STANTON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022

LIABILITIES, DEFERRED
ASSETS

AND FUND BALANCES

INFLOWS OF RESOURCES,
118

ATTACHMENT A

Development
Other Senior Impact
Grants Transportation Measure M PSTF Fees
Cash and investments -$ $ 53,763 $ 1,024,222 $ 121,171 $ 423,683 Receivables:

Interest - - - - 624
Taxes - - - - -
Due from other governments 85,742 7,563 116,856 - -
Total assets 61,326 85,742$ $ 1,141,078 $ 121,171 $ 424,307 $ Liabilities:

Accounts payable 42,583 $ - $ - $ 5,264$ -$
Due to other funds - 18,827 - - -
Total liabilities - 61,410 - 5,264 -
Deferred inflows of resources:

Unavailable revenue 85,742 - - - -
Total deferred inflows
of resources - 85,742 - - -
Fund Balances (Deficits):

Restricted - 61,326 1,141,078 115,907 424,307
Assigned - - - - -
Unassigned - (61,410) - - -
Total fund balances 61,326 (61,410) 1,141,078 115,907 424,307 Total liabilities, deferred
inflows and fund balances 61,326 85,742$ $ 1,141,078 $ 121,171 $ 424,307 $ Special Revenue Funds

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022

LIABILITIES, DEFERRED
ASSETS

INFLOWS OF RESOURCES,

AND FUND BALANCES
119

ATTACHMENT A

Stanton
Central
Park
RMRA Maintenance CDBG CASP
Cash and investments $ 1,073,034 $ 6,689 $ 211,341 $ 53,197 Receivables:

Interest - - - -
Taxes - - - -
Due from other governments - 133,229 - -
Total assets $ 6,689 1,206,263 $ 211,341 $ 53,197 $
Liabilities:

Accounts payable -$ $ 6,689 -$ -$
Due to other funds - - - -
Total liabilities 6,689 - - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows
of resources - - - -
Fund Balances (Deficits):

Restricted 1,206,263 - 211,341 53,197
Assigned - - - -
Unassigned - - - -
Total fund balances - 1,206,263 211,341 53,197
Total liabilities, deferred
inflows and fund balances $ 6,689 1,206,263 $ 211,341 $ 53,197 $

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS

INFLOWS OF RESOURCES,

AND FUND BALANCES
Special Revenue Funds

LIABILITIES, DEFERRED
120

ATTACHMENT A

Total
Park in Nonmajor
Capital Lieu Governmental
Improvements Fees Funds
Cash and investments $ 499,662 $ 3,901,727 $ 9,313,784
Receivables:

Interest - 5,845 6,469
Taxes - - 7,730
Due from other governments - - 530,772
Total assets $ 3,907,572 499,662 $ 9,858,755 $
Liabilities:

Accounts payable 255,419 $ -$ 406,625 $
Due to other funds - - 18,827
Total liabilities - 255,419 425,452
Deferred inflows of resources:

Unavailable revenue - - 98,757
Total deferred inflows
of resources - - 98,757
Fund Balances (Deficits):

Restricted - 3,907,572 9,151,713
Assigned 244,243 - 244,243
Unassigned - - (61,410)
Total fund balances 3,907,572 244,243 9,334,546
Total liabilities, deferred
inflows and fund balances $ 3,907,572 499,662 $ 9,858,755 $ Capital Projects Fund

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
ASSETS

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES, DEFERRED
121

ATTACHMENT A

Supplemental Air
Law Quality
Protective Enforcement Improvement FaCT
Gas Tax Services Program Program Grant
REVENUES:

Taxes and assessments 624,019 $ -$ -$ -$ -$
Intergovernmental 306,000 - 161,286 37,828 299,943
Charges for services - 382,531 - - -
Investment income (loss) - - - - -
Miscellaneous 5,358 - - - -
Total revenues 382,531 935,377 161,286 37,828 299,943
EXPENDITURES:

Current:

Public safety - 3,705 82,185 - -
Community development - - - - -
Public works 104,376 - - 3,545 -
Culture and recreation - - - - 344,345
Capital outlay 16,891 - - 33,307 -
Total expenditures 3,705 121,267 82,185 36,852 344,345

REVENUES OVER
(UNDER) EXPENDITURES 814,110 378,826 79,101 976 (44,402)

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - 41,445
Transfers out (375,672) (226,948) (150,000) - -
Total other financing
sources (uses) (375,672) (226,948) (150,000) - 41,445

NET CHANGE IN FUND
BALANCES 3,154 587,162 (70,899) 976 (2,957)
Fund balances,
beginning of year 889,265 4,576 439,407 177,081 2,957
Fund balances (deficits),
end of year 1,476,427 $ 7,730 $ 368,508 $ 178,057 $ - $

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
122

ATTACHMENT A

Development
Other Senior Impact
Grants Transportation Measure M PSTF Fees
REVENUES:

Taxes and assessments -$ $ - -$ -$ -$
Intergovernmental 66,915 43,328 669,471 251,181 -
Charges for services - - - - 56,094
Investment income (loss) - - - - (4,377)
Miscellaneous - - - - -
Total revenues 43,328 66,915 669,471 251,181 51,717
EXPENDITURES:

Current:

Public safety - - - 147,762 -
Community development - - - - -
Public works 42,583 - - - -
Culture and recreation - 44,568 - - -
Capital outlay - - - - -
Total expenditures 44,568 42,583 - 147,762 -

REVENUES OVER
(UNDER) EXPENDITURES (1,240) 24,332 669,471 103,419 51,717

OTHER FINANCING
SOURCES (USES):

Transfers in - 8,914 - - -
Transfers out - (85,742) (149,673) - (54,068)
Total other financing
sources (uses) 8,914 (85,742) (149,673) - (54,068)

NET CHANGE IN FUND
BALANCES 7,674 (61,410) 519,798 103,419 (2,351)
Fund balances,
beginning of year 53,652 - 621,280 12,488 426,658
Fund balances (deficits),
end of year (61,410) $ 61,326 $ 1,141,078 $ 115,907 $ 424,307 $ Special Revenue Funds

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
123

ATTACHMENT A

Stanton
t Central
Park
RMRA Maintenance CDBG CASP
REVENUES:

Taxes and assessments -$ -$ -$ -$
Intergovernmental 790,352 - 186,260 -
Charges for services - - - 8,974
Investment income (loss) - - - -
Miscellaneous 50,000 10,000 - -
Total revenues 50,000 800,352 186,260 8,974
EXPENDITURES:

Current:

Public safety - - - -
Community development - - 49,583 -
Public works - - - -
Culture and recreation - 99,825 - -
Capital outlay - - - -
Total expenditures 99,825 - 49,583 -

REVENUES OVER
(UNDER) EXPENDITURES (49,825) 800,352 136,677 8,974

OTHER FINANCING
SOURCES (USES):

Transfers in - 49,825 - -
Transfers out - - (11,360) -
Total other financing
sources (uses) 49,825 - (11,360) -

NET CHANGE IN FUND
BALANCES - 125,317 800,352 8,974
Fund balances,
beginning of year 405,911 - 86,024 44,223
Fund balances (deficits),
end of year 1,206,263 $ - $ 211,341 $ 53,197 $

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
124

ATTACHMENT A

Total
Park in Nonmajor
Capital Lieu Governmental
Improvements Fees Funds
REVENUES:

Taxes and assessments - $ -$ 624,019 $
Intergovernmental - - 2,812,564
Charges for services - 592,169 1,039,768
Investment income (loss) - (37,604) (41,981)
Miscellaneous - - 65,358
Total revenues 554,565 - 4,499,728
EXPENDITURES:

Current:

Public safety - - 233,652
Community development - - 49,583
Public works - - 150,504
Culture and recreation 267,298 23,372 779,408
Capital outlay - 352,096 402,294
Total expenditures 23,372 619,394 1,615,441

REVENUES OVER
(UNDER) EXPENDITURES 531,193 (619,394) 2,884,287

OTHER FINANCING
SOURCES (USES):

Transfers in 584,708 - 684,892
Transfers out - (123,522) (1,176,985)
Total other financing
sources (uses) (123,522) 584,708 (492,093)

NET CHANGE IN FUND
BALANCES 407,671 (34,686) 2,392,194
Fund balances,
beginning of year 278,929 3,499,901 6,942,352
Fund balances (deficits),
end of year 244,243 $ 3,907,572 $ 9,334,546 $

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Capital Projects Fund
125

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments 661,415 $ 705,070 $ 624,019 $ (81,051) $ Intergovernmental 347,235 335,580 306,000 (29,580)
Investment income 5,000 5,000 - (5,000)
Miscellaneous 3,000 - 5,358 2,358
Total revenues 1,013,650 1,048,650 935,377 (113,273)

EXPENDITURES
Current:

Public works 194,035 252,385 104,376 148,009
Capital outlay - 12,000 16,891 (4,891)
Total expenditures 194,035 264,385 121,267 143,118

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 784,265 819,615 814,110 29,845

OTHER FINANCING SOURCES
(USES)
Transfer out (586,431) (507,876) (226,948) 280,928
Total other financing sources (uses) (586,431) (507,876) (226,948) 280,928 Net change in fund balance $ 276,389 233,184 $ 587,162 310,773 $ Fund balance, beginning of year 889,265
Fund balance, end of year 1,476,427 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
126

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services $ 380,000 380,000 $ 382,531 $ 2,531 $ Total revenues 380,000 380,000 382,531 2,531

EXPENDITURES
Current:

Public safety 5,000 7,625 3,705 3,920
Total expenditures 5,000 7,625 3,705 3,920

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 372,375 375,000 378,826 6,451

OTHER FINANCING SOURCES
(USES)
Transfer out (375,000) (376,951) (375,672) 1,279
Total other financing sources (uses) (375,000) (376,951) (375,672) 1,279 Net change in fund balance (4,576) -$ $ 3,154 7,730 $
Fund balance, beginning of year 4,576
Fund balance, end of year 7,730 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Protective Services Special Revenue Fund
For the Year Ended June 30, 2022
127

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental $ 160,000 125,000 $ 161,286 $ 1,286 $ Total revenues 125,000 160,000 161,286 1,286

EXPENDITURES
Current:

Public safety 127,300 133,800 82,185 51,615
Total expenditures 127,300 133,800 82,185 51,615

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 26,200 (2,300) 79,101 52,901

OTHER FINANCING SOURCES
(USES)
Transfer out (150,000) (150,000) (150,000) -
Total other financing sources (uses) (150,000) (150,000) (150,000) - Net change in fund balance $ (123,800) (152,300) $ (70,899) 52,901 $ Fund balance, beginning of year 439,407
Fund balance, end of year 368,508 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Program Special Revenue Fund For the Year Ended June 30, 2022
128

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 45,000 $ 45,000 $ 37,828 $ (7,172) $
Investment income 4,500 4,500 - (4,500)
Total revenues 49,500 49,500 37,828 (11,672)

EXPENDITURES
Current:

Public works 1,000 4,550 3,545 1,005
Capital outlay - 35,865 33,307 2,558
Total expenditures 1,000 40,415 36,852 3,563
Net change in fund balance $ 9,085 48,500 $ 976 (8,109) $ Fund balance, beginning of year 177,081
Fund balance, end of year 178,057 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Improvement Program Special Revenue Fund
For the Year Ended June 30, 2022
129

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental $ 310,545 300,000 $ 299,943 $ (10,602) $ Total revenues 300,000 310,545 299,943 (10,602)

EXPENDITURES
Current:

Culture and recreation 317,100 330,603 344,345 (13,742) Total expenditures 317,100 330,603 344,345 (13,742)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (20,058) (17,100) (44,402) (24,344)

OTHER FINANCING SOURCES
(USES)
Transfer in 17,100 17,100 41,445 24,345
Total other financing sources (uses) 17,100 17,100 41,445 24,345 Net change in fund balance (2,958) -$ $ (2,957) 1 $
Fund balance, beginning of year 2,957
Fund balance, end of year -$

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Families and Communities Together (FaCT) Grant Special Revenue Fund For the Year Ended June 30, 2022
130

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental $ 7,859,755 - $ 66,915 $ (7,792,840) $ Total revenues - 7,859,755 66,915 (7,792,840)

EXPENDITURES
Current:

Public works - 66,915 42,583 24,332
Total expenditures - 66,915 42,583 24,332

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,792,840 - 24,332 (7,768,508)

OTHER FINANCING SOURCES
(USES)
Transfer out - (7,792,840) (85,742) 7,707,098
Total other financing sources (uses) - (7,792,840) (85,742) 7,707,098 Net change in fund balance - -$ $ (61,410) (61,410) $
Fund balance, beginning of year -
Fund balance (deficit), end of year (61,410) $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Grants Special Revenue Fund
For the Year Ended June 30, 2022
131

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 25,430 $ 25,430 $ 43,328 $ 17,898 $
Investment income 11,265 700 - (700)
Total revenues 36,695 26,130 43,328 17,198

EXPENDITURES
Current:

Culture and recreation 56,165 56,165 44,568 11,597
Total expenditures 56,165 56,165 44,568 11,597

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (30,035) (19,470) (1,240) 28,795

OTHER FINANCING SOURCES
(USES)
Transfer in - 10,565 8,914 (1,651)
Total other financing sources (uses) - 10,565 8,914 (1,651) Net change in fund balance $ (19,470) (19,470) $ 7,674 27,144 $ Fund balance, beginning of year 53,652
Fund balance, end of year 61,326 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Senior Transportation Special Revenue Fund
For the Year Ended June 30, 2022
132

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 533,590 $ 653,590 $ 669,471 $ 15,881 $ Investment income 5,000 5,000 - (5,000)
Total revenues 538,590 658,590 669,471 10,881

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 658,590 538,590 669,471 10,881

OTHER FINANCING SOURCES
(USES)
Transfer out (750,000) (895,631) (149,673) 745,958
Total other financing sources (uses) (750,000) (895,631) (149,673) 745,958 Net change in fund balance $ (237,041) (211,410) $ 519,798 756,839 $ Fund balance, beginning of year 621,280
Fund balance, end of year 1,141,078 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2022
133

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 168,181 -$ $ 251,181 $ 83,000 $
Total revenues - 168,181 251,181 83,000

EXPENDITURES
Current:

Public safety - 180,669 147,762 32,907
Total expenditures - 180,669 147,762 32,907
Net change in fund balance (12,488) -$ $ 103,419 50,093 $ Fund balance, beginning of year 12,488
Fund balance, end of year $ 115,907

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Safety Task Force (PSTF) Special Revenue Fund
For the Year Ended June 30, 2022
134

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 120,000 $ 28,000 $ 56,094 $ 28,094 $ Investment income (loss) 4,000 4,000 (4,377) (8,377)
Total revenues 124,000 32,000 51,717 19,717

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 32,000 124,000 51,717 19,717

OTHER FINANCING SOURCES
(USES)
Transfer out (141,000) (55,109) (54,068) 1,041
Total other financing sources (uses) (141,000) (55,109) (54,068) 1,041 Net change in fund balance $ (23,109) (17,000) $ (2,351) 20,758 $ Fund balance, beginning of year 426,658
Fund balance, end of year 424,307 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Development Impact Fees Special Revenue Fund
For the Year Ended June 30, 2022
135

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 768,240 $ 819,640 $ 790,352 $ (29,288) $ Investment income 5,030 5,030 - (5,030)
Miscellaneous 10,000 - 10,000 -
Total revenues 773,270 834,670 800,352 (34,318)

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 834,670 773,270 800,352 (34,318)

OTHER FINANCING SOURCES
(USES)
Transfer out (1,060,640) (1,109,893) - 1,109,893
Total other financing sources (uses) (1,060,640) (1,109,893) - 1,109,893 Net change in fund balance $ (275,223) (287,370) $ 800,352 1,075,575 $ Fund balance, beginning of year 405,911
Fund balance, end of year 1,206,263 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Road Maintenance and Rehabilitation Account (RMRA) Special Revenue Fund For the Year Ended June 30, 2022
136

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

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

EXPENDITURES
Current:

Culture and recreation 91,140 107,540 99,825 7,715
Total expenditures 91,140 107,540 99,825 7,715

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (57,540) (41,140) (49,825) 7,715

OTHER FINANCING SOURCES
(USES)
Transfer in 41,140 57,540 49,825 (7,715)
Total other financing sources (uses) 41,140 57,540 49,825 (7,715) Net change in fund balance - -$ $ - -$
Fund balance, beginning of year -
Fund balance, end of year -$

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Stanton Central Park Maintenance Special Revenue Fund
For the Year Ended June 30, 2022
137

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 350,000 $ 628,181 $ 186,260 $ (441,921) $ Investment income 5,000 5,000 - (5,000)
Total revenues 355,000 633,181 186,260 (446,921)

EXPENDITURES
Current:

Community development 112,410 263,091 49,583 213,508
Total expenditures 112,410 263,091 49,583 213,508

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 370,090 242,590 136,677 (233,413)

OTHER FINANCING SOURCES
(USES)
Transfer out (350,000) (350,000) (11,360) 338,640
Total other financing sources (uses) (350,000) (350,000) (11,360) 338,640 Net change in fund balance $ 20,090 (107,410) $ 125,317 105,227 $ Fund balance, beginning of year 86,024
Fund balance, end of year 211,341 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant (CDBG) Special Revenue Fund For the Year Ended June 30, 2022
138

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services $ 10,000 10,000 $ 8,974 $ (1,026) $ Total revenues 10,000 10,000 8,974 (1,026)

EXPENDITURES
Current:

Public safety 5,000 5,000 - 5,000
Total expenditures 5,000 5,000 - 5,000
Net change in fund balance $ 5,000 5,000 $ 8,974 3,974 $ Fund balance, beginning of year 44,223
Fund balance, end of year 53,197 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Certified Access Specialist Program (CASP) Special Revenue Fund For the Year Ended June 30, 2022
139

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget
REVENUES -$ -$ -$ $ -

EXPENDITURES
Current:

Culture and recreation 750,780 1,261,105 267,298 993,807 Capital outlay 10,900,273 2,590,220 352,096 10,548,177
Total expenditures 3,341,000 12,161,378 619,394 11,541,984

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (12,161,378) (3,341,000) (619,394) (11,541,984)

OTHER FINANCING SOURCES
(USES)
Transfer in 3,308,071 11,948,449 584,708 (11,363,741)
Total other financing sources (uses) 3,308,071 11,948,449 584,708 (11,363,741) Net change in fund balance $ (212,929) (32,929) $ (34,686) (22,905,725) $ Fund balance, beginning of year 278,929
Fund balance, end of year 244,243 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Improvements Capital Projects Fund
For the Year Ended June 30, 2022
140

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 500,000 $ 300,000 $ 592,169 $ 292,169 $ Investment income (loss) 20,000 10,000 (37,604) (47,604) Total revenues 520,000 310,000 554,565 244,565

EXPENDITURES
Current:

Culture and recreation - 22,325 23,372 (1,047)
Total expenditures - 22,325 23,372 (1,047)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 287,675 520,000 531,193 243,518

OTHER FINANCING SOURCES
(USES)
Transfer out (125,000) (548,100) (123,522) 424,578
Total other financing sources (uses) (125,000) (548,100) (123,522) 424,578 Net change in fund balance $ (260,425) 395,000 $ 407,671 668,096 $ Fund balance, beginning of year 3,499,901
Fund balance, end of year 3,907,572 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park in Lieu Fees Capital Projects Fund
For the Year Ended June 30, 2022
141

ATTACHMENT A

142
This page intentionally left blank

ATTACHMENT A

143

INTERNAL SERVICE FUNDS

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF INTERNAL REVENUE FUNDS
JUNE 30, 2022
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

Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Total
ASSETS
Current assets:

Cash and investments 571,856 $ 134,930 $ 348,067 $ 408,273 $ 1,463,126 $ Restricted cash and investments held
in pension trust - - 3,980,189 - 3,980,189
Receivables:

Interest 895 196 - 1,722 631
Prepaids - - 101,204 - 101,204
Due from other governments 228,793 - 43,000 - 271,793
Total current assets 801,544 135,126 4,472,460 408,904 5,818,034 Noncurrent assets:

Capital assets - net of accumulated depreciation - - - 281,767 281,767 Total noncurrent assets - - - 281,767 281,767
Total assets 135,126 801,544 4,472,460 690,671 6,099,801

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount from pension plan - - 3,900,975 - 3,900,975 Total deferred outflows of resources - - 3,900,975 - 3,900,975

LIABILITIES
Current liabilities:

Accounts payable 300 - - 9,620 9,920
Claims and judgements payable - 13,870 - - 13,870
Compensated absences payable - - 163,154 316 163,470
Total current liabilities 300 13,870 163,154 9,936 187,260 Noncurrent liabilities:

Compensated absences payable - - 155,441 1,238 156,679
Net pension liability - - 1,931,124 - 1,931,124
Total noncurrent liabilities - - 2,086,565 1,238 2,087,803 Total liabilities 13,870 300 2,249,719 11,174 2,275,063

DEFERRED INFLOWS OF RESOURCES
Deferred amount from pension plan - - 5,540,607 - 5,540,607 Total deferred inflows of resources - - 5,540,607 - 5,540,607

NET POSITION
Net investment in capital assets - - - 281,767 281,767
Unrestricted 121,256 801,244 583,109 397,730 1,903,339
Total net position $ 801,244 121,256 $ 583,109 $ 679,497 $ 2,185,106 $

CITY OF STANTON
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
145

ATTACHMENT A

Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Elimination Total OPERATING REVENUES:

Charges for services 57,475 $ 239,679 $ 1,513,826 $ 112,768 $ (51,292) $ 1,872,456 $ Miscellaneous - 32,575 2,367,399 - - 2,399,974
Total operating revenues 272,254 57,475 3,881,225 112,768 (51,292) 4,272,430 OPERATING EXPENSES:

Equipment maintenance and operation - - - 75,097 - 75,097 Depreciation - - - 96,494 - 96,494
Administrative and personnel services - 1,511,519 - 14,358 (51,292) 1,474,585 Insurance premiums and claims 47,078 239,679 - - - 286,757 Contractual services - - 26,985 - - 26,985
Total operating expenses 239,679 47,078 1,538,504 185,949 (51,292) 1,959,918 OPERATING INCOME 32,575 10,397 2,342,721 (73,181) - 2,312,512 NON-OPERATING REVENUES (EXPENSES):

Investment income (loss) (5,413) (1,266) (587,982) (4,230) - (598,891) Gain on sale of capital assets - - - 1,452 - 1,452
Total non-operating revenues
(expenses) (1,266) (5,413) (587,982) (2,778) - (597,439) INCOME BEFORE TRANSFERS 31,309 4,984 1,754,739 (75,959) - 1,715,073 Transfers in - 131,330 - - - 131,330
Total transfers 131,330 - - - - 131,330
Change in net position 162,639 4,984 1,754,739 (75,959) - 1,846,403 Net position (deficit), beginning of year 796,260 (41,383) (1,171,630) 755,456 - 338,703 Net position, end of year 801,244 $ 121,256 $ 583,109 $ 679,497 $ - $ 2,185,106 $

CITY OF STANTON
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2022
146

ATTACHMENT A

Liability/
Workers' Risk Employee Fleet
Compensation Management Benefits Maintenance Elimination Total CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 69,744 $ 284,828 $ 1,514,555 $ 118,556 $ (51,292) $ 1,936,391 $ Cash paid to other suppliers of goods or services (69,823) (424,108) (144,370) (65,487) - (703,788) Cash paid to employees for salaries, wages, and benefits - - (1,474,083) (13,899) 51,292 (1,436,690) Net cash provided (used by) operating activities (139,280) (79) (103,898) 39,170 - (204,087) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Cash received from other funds - 131,330 - - - 131,330
Net cash provided (used by) non-capital
financing activities 131,330 - - - - 131,330
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets - - - (99,393) - (99,393) Proceeds from sale of capital assets - - - 1,452 - 1,452 Net cash provided (used by) capital and
related financing activities - - - (97,941) - (97,941)
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) (6,287) (1,377) (587,982) (4,490) - (600,136) Net cash provided (used by) investing activities (1,377) (6,287) (587,982) (4,490) - (600,136) Net increase (decrease) in cash and cash equivalents (6,366) (9,327) (691,880) (63,261) - (770,834) Cash and equivalents, beginning of year 578,222 144,257 5,020,136 471,534 - 6,214,149 Cash and equivalents, end of year 571,856 $ 134,930 $ 4,328,256 $ 408,273 $ - $ 5,443,315 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) 10,397 $ 32,575 $ 2,342,721 $ (73,181) $ - $ 2,312,512 $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - - - 96,494 - 96,494
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable - - - 5,788 - 5,788 (Increase) decrease in due from other
governments 12,269 12,574 1,290 - - 26,133
(Increase) decrease in prepaid expense - 2,250 (101,204) - - (98,954) (Increase) decrease in deferred outflows
of resources - (1,278,470) - - (1,278,470) -
Increase (decrease) in accounts payable (80) (20,000) (16,181) 9,610 - (26,651) Increase (decrease) in unearned revenue - - (561) - - (561) Increase (decrease) in claims and judgements (22,665) (166,679) - - (189,344) - Increase (decrease) in compensated absences - - 37,437 459 - 37,896 Increase (decrease) in net pension liability - (4,700,024) - - (4,700,024) - Increase (decrease) in deferred inflows
of resources - - 3,611,094 - - 3,611,094
Total adjustments (171,855) (10,476) (2,446,619) 112,351 - (2,516,599) Net cash provided (used) by operating activities $ (139,280) (79) $ (103,898) $ 39,170 $ - $ (204,087) $

CITY OF STANTON
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2022
147

ATTACHMENT A

148
This page intentionally left blank

ATTACHMENT A

149

PRIVATE-PURPOSE TRUST FUNDS

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2022
150
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 Collaborative Fund - To account for activities with other governmental agencies related to the North Orange County Public Safety Collaborative 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

Successor
Agency
to the Stanton
Redevelopment NOCPSC
Agency PrivatePrivate-Purpose Purpose
Trust Fund Trust Fund Total
ASSETS
Current assets:

Cash and investments 3,472,398 $ 3,695,100 $ 7,167,498 $ Prepaid items - 66,381 66,381
Restricted assets:

Cash held by fiscal agent 1,650,953 - 1,650,953
Total assets 3,761,481 5,123,351 8,884,832

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding - 7,581,525 7,581,525
Total deferred outflow of
resources - 7,581,525 7,581,525

LIABILITIES
Current liabilities:

Accounts payable - 513,623 513,623
Interest payable 170,239 - 170,239
Bonds payable - current portion 2,635,000 - 2,635,000
Total current liabilities 2,805,239 513,623 3,318,862
Long-term liabilities:

Bonds payable 52,725,952 - 52,725,952
Total long-term liabilities 52,725,952 - 52,725,952
Total liabilities 513,623 55,531,191 56,044,814

NET POSITION
Restricted for private purpose 3,247,858 (42,826,315) (39,578,457) Total net position $ 3,247,858 (42,826,315) $ (39,578,457) $ June 30, 2022

CITY OF STANTON
Combining Statement of Net Position
All Private-Purpose Trust Funds
151

ATTACHMENT A

Successor
Agency
to the Stanton
Redevelopment NOCPSC
Agency PrivatePrivate-Purpose Purpose
Trust Fund Trust Fund Total
ADDITIONS:

Taxes 4,577,090 $ - $ 4,577,090 $
Intergovernmental - 7,548,820 7,548,820
Investment income 121 - 121
Total additionas 7,548,820 4,577,211 12,126,031
DEDUCTIONS:

Contractual services 66,500 - 66,500
Public safety - 4,387,048 4,387,048
Interest and fiscal charges 2,499,373 - 2,499,373
Total deductions 4,387,048 2,565,873 6,952,921
CHANGE IN NET POSITION 3,161,772 2,011,338 5,173,110
Net position, beginning of year (44,837,653) 86,086 (44,751,567) Net position, end of year (42,826,315) $ 3,247,858 $ (39,578,457) $ For the year ended June 30, 2022

CITY OF STANTON
Combining Statement of Changes in Net Position
All Private-Purpose Trust Funds
152

ATTACHMENT A

153

STATISTICAL SECTION (UNAUDITED)

ATTACHMENT A

154
This page intentionally left blank

ATTACHMENT A

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 156
2 Changes in Net Position 158
3 Fund Balances of Governmental Funds 162
4 Changes in Fund Balances - Governmental Funds 164
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 166 7 Direct and Overlapping Property Tax Rates 168
8 Principal Property Tax Payers 170
9 Property Tax Levies and Collections 171
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 172
11 Direct and Overlapping Debt 173
12 Legal Debt Margin Information 174
13 Pledged - Revenue Coverage 176
Demographic and Economic Information - These schedules offer demographic and economic 14 Demographic and Economic Statistics 178
15 Principal Employers 179
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 180
17 Operating Indicators by Functions 182
18 Capital Asset Statistics by Function 188
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 heath. The statistical information presented herein is un-audited.

CITY OF STANTON

STATISTICAL SECTION (UNAUDITED)
June 30, 2022
indicators to help the reader understand the environment within which the City's financial activities take place.
155

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16
Governmental activities:

Net investment in capital assets $ 87,225,759 92,494,864 $ 79,209,329 $ 88,342,750 $ Restricted 20,919,037 22,114,070 20,219,980 19,166,303
Unrestricted 22,506,002 22,726,068 14,875,639 15,861,417 Total governmental activities net position 135,919,903 132,065,897 114,304,948 123,370,470 Business-type activities:

Net investment in capital assets 5,238,330 5,371,857 5,135,853 5,003,312 Unrestricted 1,816,176 2,308,704 2,604,629 3,216,884
Total business-type activities net position 7,188,033 7,547,034 7,740,482 8,220,196 Primary government:

Net investment in capital assets 92,464,089 97,866,721 84,345,182 93,346,062 Restricted 20,919,037 22,114,070 20,219,980 19,166,303
Unrestricted 24,322,178 25,034,772 17,480,268 19,078,301 Total primary government net position 143,107,936 $ 139,612,931 $ 122,045,430 $ 131,590,666 $ *
Source: City Finance Department
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

Fiscal Year

CITY OF STANTON

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
156

ATTACHMENT A

2016-17 2017-18 2018-19 2019-20* 2020-21 2021-22
$ 87,079,003 $ 88,374,103 $ 88,077,568 $ 96,374,328 $ 92,106,906 $ 89,960,892 23,062,147 27,536,678 28,086,476 22,693,282 21,411,322 23,551,709 12,719,777 13,014,515 17,774,619 21,403,422 25,179,797 31,132,064 122,860,927 128,925,296 133,938,663 140,471,032 138,698,025 144,644,665 4,877,897 5,250,434 5,107,553 4,964,679 4,970,607 4,827,134 3,666,352 3,595,542 4,064,319 4,398,961 5,193,357 5,920,286 8,544,249 8,845,976 9,171,872 9,363,640 10,163,964 10,747,420 91,956,900 93,624,537 93,185,121 101,339,007 97,077,513 94,788,026 23,062,147 27,536,678 28,086,476 22,693,282 21,411,322 23,551,709 16,386,129 16,610,057 21,838,938 25,802,383 30,373,154 37,052,350 $ 131,405,176 $ 137,771,272 $ 143,110,535 $ 149,834,672 $ 148,861,989 $ 155,392,085 Fiscal Year
157

ATTACHMENT A

2012-13* 2013-14* 2014-15* 2015-16*
Expenses:

Governmental activities:

General government $ 2,852,594 $ 2,976,011 $ 3,043,005 $ 3,468,099 Public safety 12,390,690 11,425,129 13,460,725 15,831,683 Community development 2,032,838 1,818,001 1,709,355 1,747,416 Health and welfare 2,826 4,265 3,476 3,512
Public works 2,895,834 2,358,073 1,762,185 1,235,617
Culture and recreation 1,410,745 1,198,807 1,162,126 1,592,769 Interest and fiscal charges - - - -
Transfer of land to successor agency - 10,192,858 - -
Total governmental activities expenses 20,619,966 30,938,705 21,140,872 23,879,096 Business-type activities:

Sewer 862,865 883,725 839,850 643,739
Total business-type activities expenses 883,725 862,865 839,850 643,739 Total primary government expenses 21,503,691 31,801,570 21,980,722 24,522,835 Program revenues:

Governmental activities:

Charges for services:

General government 70,950 433,374 458,286 488,128
Public safety 882,480 895,826 896,383 913,203
Community development 1,009,732 1,240,666 1,254,023 1,198,820 Public works - 11,608 14,966 10,032
Interest and fiscal charges - - - -
Culture and recreation 109,456 448,528 417,748 357,585
Operating grants and contributions 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 4,846,436 6,296,493 6,390,728 8,279,828 Business-type activities:

Charges for services:

Sewer 1,108,357 848,369 1,075,714 1,016,363
Total business-type activities
program revenues 848,369 1,108,357 1,075,714 1,016,363
Total primary government
program revenues 5,694,805 7,404,850 7,466,442 9,296,191 Note:
*
Source: City Finance Department
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

Fiscal Year

CITY OF STANTON

CHANGES IN NET POSITION-EXPENSES AND PROGRAM REVENUES

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
158

ATTACHMENT A

2016-17* 2017-18* 2018-19* 2019-20* 2020-21 2021-22
$ 3,135,756 3,726,949 $ 1,666,776 $ 3,739,756 $ 4,848,332 $ 3,767,048 $ 17,294,863 16,162,642 21,730,025 18,712,309 21,046,456 18,643,242 4,746,591 2,083,114 1,235,126 3,000,334 3,696,528 2,574,453 37,250 67,305 16,795 - - -
1,598,743 1,870,833 1,299,051 2,404,139 4,652,371 2,208,440 2,030,052 1,933,953 1,181,246 2,120,218 2,301,778 2,307,801 - - - 24,223 25,823 12,943
- - - - - -
25,668,805 29,019,246 27,129,019 30,000,979 36,571,288 29,513,927 737,939 926,631 1,152,003 1,436,274 1,531,447 839,808
737,939 926,631 1,152,003 1,436,274 1,531,447 839,808
26,406,744 29,945,877 28,281,022 31,437,253 38,102,735 30,353,735 527,561 345,485 487,870 359,865 85,717 87,045
1,375,973 1,751,036 1,754,200 1,899,756 2,088,690 2,024,026 1,244,909 2,116,525 3,283,119 3,908,877 5,107,540 3,878,142 - 47,389 48,076 59,849 68,258 21,500
- - - - - -
95,746 571,210 550,144 1,428,477 1,565,463 647,530
2,876,853 3,383,242 3,586,655 4,655,790 5,697,844 4,919,300 - 1,353,727 3,423,482 - 35,081 43,328
6,121,042 9,568,614 9,710,064 15,736,096 14,648,593 11,620,871 935,798 1,052,745 1,267,440 1,305,410 2,235,352 1,312,065 935,798 1,052,745 1,267,440 1,305,410 2,235,352 1,312,065 7,056,840 10,621,359 10,977,504 17,041,506 16,883,945 12,932,936 Fiscal Year
159

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16
Net revenues (expenses)
Governmental activities (15,773,530) (24,642,212) (14,750,144) (15,599,268) Business activities (35,356) 245,492 235,864 372,624
Total net revenues (expenses) (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 $ 5,307,800 $ 5,613,269 $ 5,314,329 $ 5,507,417 Sales taxes 3,683,199 3,925,839 4,012,917 4,169,215
Transactions and use taxes - - 792,300 3,591,594
Transient occupancy taxes 341,838 323,938 375,876 437,676 Franchise taxes 996,947 1,031,034 964,450 1,011,630
Utility users taxes 2,110,373 2,177,807 2,189,068 2,015,948 Other taxes 413,750 308,544 413,999 487,593
Investment earnings (loss), unrestricted 111,367 199,807 132,205 227,705 Miscellaneous 719,734 744,002 725,215 714,613
Gain on sale of capital assets - - 475,282 -
Transfers in - - - -
Extraordinary item (1) (443,232) - - 6,501,399
Special item (2) - - (3,393,141) -
Total governmental activities 13,241,776 14,335,501 11,991,239 24,664,790 Business-type activities:

Taxes:

Property taxes 148,107 105,749 90,282 90,532
Investment earnings (loss) 7,760 8,424 10,430 16,558
Miscellaneous - - - -
Transfers out - - - -
Total business-type activities 156,531 113,509 100,712 107,090 Total primary government 14,449,010 13,398,307 12,091,951 24,771,880 Changes in net position
Governmental activities (2,531,754) (10,306,711) (2,758,905) 9,065,522 Business-type activities 121,175 359,001 336,576 479,714 Total primary government $ (9,947,710) (2,410,579) $ (2,422,329) $ 9,545,236 $ Notes:

Source: City Finance Department
(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.

CITY OF STANTON

CHANGES IN NET POSITION-GENERAL REVENUES

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
160

ATTACHMENT A

2016-17 2017-18 2018-19* 2019-20 2020-21 2021-22
(19,547,763) (19,450,632) (17,418,955) (14,264,883) (21,922,695) (17,893,056) 126,114 197,859 115,437 (130,864) 703,905 472,257
(19,349,904) (19,324,518) (17,303,518) (14,395,747) (21,218,790) (17,420,799) $ 6,071,733 5,435,415 $ 6,433,535 $ 6,816,387 $ 7,561,831 $ 8,512,488 $ 4,204,519 4,152,378 4,327,842 4,278,141 4,682,029 5,414,556 4,122,756 4,105,593 4,057,037 4,537,734 4,991,100 5,993,735 514,102 512,550 483,233 512,492 569,293 670,954
1,088,226 992,798 1,026,619 1,055,791 1,105,276 1,090,057 1,986,236 1,980,854 1,850,880 1,791,516 1,990,690 2,122,661 524,570 461,745 433,541 364,751 345,315 361,335
135,059 119,772 1,325,735 1,167,877 959,781 (953,228)
649,678 1,277,115 413,900 272,563 95,045 177,460
- 6,000,100 - - - 430,902
- - - - 81,616 18,776
- - - - - -
- - 2,080,000 - - -
19,038,220 25,296,979 22,432,322 20,797,252 22,381,976 23,839,696 99,852 124,950 131,641 147,159 165,692 188,097
26,342 50,663 78,818 167,573 12,343 (58,122)
- - - 7,900 - -
- - - - (81,616) (18,776)
175,613 126,194 210,459 322,632 96,419 111,199
25,472,592 19,164,414 22,642,781 21,119,884 22,478,395 23,950,895 (509,543) 5,846,347 5,013,367 6,532,369 459,281 5,946,640 324,053 301,727 325,896 191,768 800,324 583,456
$ (185,490) $ 6,148,074 $ 5,339,263 $ 6,724,137 $ 1,259,605 $ 6,530,096 Fiscal Year
161

ATTACHMENT A

2012-13* 2013-14* 2014-15* 2015-16*
General Fund:

Nonspendable 8,971,880 $ 8,379,173 $ 6,730,051 $ 5,398,081 $ Restricted - - - -
Committed 3,720,465 3,965,209 4,317,883 4,677,019
Assigned 31,772 38,751 - 7,200
Unassigned 6,313,207 8,181,723 9,391,105 11,811,587
Total General Fund $ 19,037,324 $ 20,564,856 $ 20,439,039 $ 21,893,887 All other governmental funds:

Nonspendable $ 10,065,582 $ - -$ -$
Restricted 10,514,621 22,118,786 20,232,644 19,166,303
Committed - - - -
Assigned 1,451,877 683,276 756,521 790,528
Unassigned (392,307) (51,385) (526,651) (790,292)
Total all other governmental funds 21,639,773 $ $ 22,750,677 $ 20,462,514 $ 19,166,539 Note:
*
Source: City Finance Department
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

Fiscal Year

CITY OF STANTON

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
162

ATTACHMENT A

2016-17* 2017-18* 2018-19* 2019-20 2020-21 2021-22
$ 1,387,690 3,992,852 $ 1,806,958 $ 146,069 $ 2,488,780 $ 2,634,436 $ 3,501,556 3,065,186 3,735,741 - - -
11,150,000 12,022,695 13,261,735 10,074,410 8,661,735 9,856,296 - - - 123,935 356,687 169,585
4,566,919 5,895,617 3,509,177 10,277,670 12,691,577 15,826,042 $ 22,774,957 $ 22,807,558 $ 22,313,611 $ 20,622,084 $ 24,198,779 $ 28,486,359 -$ -$ -$ -$ -$ -$
19,996,961 24,035,122 24,350,735 22,636,555 21,212,537 23,491,748 - - - - - -
682,470 908,996 1,117,693 320,739 278,929 244,243
(303,957) (27,464) (29,247) (41,723) - (61,410)
$ 20,375,474 $ 24,916,654 $ 25,439,181 $ 22,915,571 $ 21,491,466 $ 23,674,581 Fiscal Year
163

ATTACHMENT A

2012-13* 2013-14* 2014-15* 2015-16*
Revenues:

Taxes and assessments 13,469,674 $ 14,062,751 $ 14,730,740 $ 17,838,271 $ Licenses and permits 917,431 419,298 417,780 357,381
Intergovernmental 2,843,557 2,765,837 1,916,432 4,844,423 Charges for services* 206,303 2,363,378 2,349,520 2,361,663 Fines and forfeitures 320,222 279,542 292,505 296,607
Interest income (loss) 272,502 202,857 195,526 227,707
Rental income 700,878 700,811 706,265 619,977
Gain on sale of land held for resale - - - -
Miscellaneous 113,528 55,883 17,955 71,754
Contribution from Successor Agency - - - -
Total Revenues 18,844,095 20,850,357 20,626,723 26,617,783 Expenditures:

Current:

General government 2,189,685 2,461,666 2,615,927 2,900,169 Public safety 10,983,189 12,047,794 13,176,004 15,453,062 Community development 1,590,898 1,475,104 1,424,634 1,368,795 Highways and streets 2,564,379 2,098,897 1,548,644 951,650 Culture and recreation 1,079,290 921,302 948,585 1,331,178 Health and welfare 2,826 4,265 3,476 3,512
Capital outlay 918,203 475,187 1,131,626 10,951,943
Debt Service:

Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures 19,328,470 19,484,215 20,848,896 32,960,309 Excess (Deficiency) of Revenues
Over (Under Expenditures (484,375) 1,366,142 (222,173) (6,342,526) Other financing sources (Uses):

Proceeds from long-term debt - - - -
Sale of capital assets - - - -
Transfers in 710,030 1,884,218 624,942 599,348
Transfers out (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 (484,375) 2,638,436 (422,173) (6,342,526) Special/Extraordinary items (1) (443,232) - (2,082,812) 6,501,399 Net change in fund balances $ (927,607) $ 2,638,436 $ (2,504,985) $ 158,873 Debt service as a percentage of
noncapital expenditures 0% 0% 0% 0%
Notes:
*
(1) Reinstatement of advance to Successor Agency
Source: City Finance Department
Fiscal Year
Certain amounts presented in the prior year financial statements have been reclassified in order to be consistent with the current year's presentation.

CITY OF STANTON

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
164

ATTACHMENT A

2016-17* 2017-18* 2018-19* 2019-20* 2020-21 2021-22
$ 19,821,063 18,697,469 $ $ 20,541,371 $ 21,167,374 $ 23,160,509 $ 25,471,470 321,935 664,964 714,474 1,132,116 2,091,517 1,037,171
2,772,489 2,691,518 1,815,443 3,462,782 3,992,601 4,811,604 2,190,769 3,182,541 3,438,846 4,444,656 5,015,265 3,737,992 360,662 460,794 410,443 411,644 524,705 468,222
119,771 116,130 2,026,619 1,565,134 151,183 (516,680)
605,377 589,631 624,406 637,676 579,024 700,487
- 6,000,100 - - - -
684,711 70,083 286,946 211,217 96,605 101,787
- - - 3,377,369 - -
25,753,183 33,596,824 29,858,548 36,409,968 35,611,409 35,812,053 2,879,492 2,535,059 2,605,958 2,706,193 4,367,607 4,338,089 15,597,673 16,894,400 22,350,545 18,023,261 20,682,528 18,732,182 1,518,145 4,346,128 1,855,646 2,303,811 3,168,880 2,838,526 1,175,017 1,570,486 1,714,628 1,477,485 1,835,882 1,249,274 1,606,326 1,760,921 1,646,637 1,603,432 1,721,498 2,324,919 67,305 37,250 16,795 - - -
819,220 1,878,799 1,719,759 11,829,522 882,099 489,773
- - - 55,754 1,069,246 -
- - - 14,906 35,140 12,943
23,663,178 29,023,043 31,909,968 38,014,364 33,762,880 29,985,706 2,090,005 4,573,781 (2,051,420) (1,604,396) 1,848,529 5,826,347 - - - 1,125,000 - -
- - - - 210,100 756,902
633,550 828,000 757,400 604,623 1,985,777 2,336,767
(633,550) (828,000) (757,400) (4,340,364) (1,904,161) (2,449,321) - - - (2,610,741) 291,716 644,348
2,090,005 4,573,781 (2,051,420) (4,215,137) 2,140,245 6,470,695 - - 2,080,000 - - -
$ 2,090,005 $ 4,573,781 $ 28,580 $ (4,215,137) $ 2,140,245 $ 6,470,695 0% 0% 0% 0.2% 3.3% 0.0%
Fiscal Year
165

ATTACHMENT A

Fiscal Year Taxable Taxable
Ended SBE Assessed Assessed
June 30 Secured Unsecured Nonunitary Value (1) Secured Unsecured Value 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 2022 3,330,318 166,399 130,955 3,627,672 2,522,570 105,282 2,627,852 Notes:
(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 OF STANTON
City Redevelopment Agency (2)
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.

LAST TEN FISCAL YEARS

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (AMOUNTS EXPRESSED IN THOUSANDS)
166

ATTACHMENT A

This page intentionally left blank.
167

ATTACHMENT A

2012-13 2013-14 2014-15
Basic Levy (1) 1.00000 1.00000 1.00000
Overlapping Rates (2):

Anaheim Union High School District 0.02858 0.02620 0.02412 Coast Community College District 0.01881 0.02899 0.03015 Garden Grove Unified School District 0.03135 0.03703 0.04148 Magnolia Elementary School District 0.02493 0.02737 0.02497 Metropolitan Water District 0.00350 0.00350 0.00350
North Orange County
Community College District 0.01902 0.01704 0.01758
Savanna School District 0.05976 0.05557 0.05443
Total Direct and Overlapping Tax Rates 1.18595 1.19570 1.19623 City's Share of 1% Levy Per Prop 13 (3) 0.10940 0.10940 0.10940 Redevelopment Rate (4) 0.00000 0.00000 0.00000
Total Direct Rate (5) 0.58962 0.13707 0.13703
Notes:

Source: HdL, Coren & Cone
Fiscal Year

CITY OF STANTON

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(RATE PER $100 OF ASSESSED VALUE)
(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. 168

ATTACHMENT A

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.04948 0.04259 0.02211 0.04244 0.03968 0.03971 0.03804

0.03092 0.03116 0.03145 0.03052 0.03100 0.03181 0.03119

0.04656 0.04487 0.07454 0.06848 0.06922 0.06956 0.07408

0.02349 0.02552 0.02849 0.02859 0.02722 0.02714 0.02619

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.03043 0.02885 0.02927 0.02829 0.02409 0.03198 0.02877

0.05501 0.05948 0.06115 0.06086 0.06132 0.06481 0.07355

1.23939 1.23597 1.25051 1.26268 1.25603 1.26851 1.27532

0.10940 0.10940 0.13645 0.13645 0.13645 0.13645 0.13645

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.13701 0.13698 0.13695 0.13994 0.13991 0.14007 0.14002 Fiscal Year
169

ATTACHMENT A

Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Stanton Energy Reliability Center LLC 129,700,000 $ 1 3.58% - $ - - CR&R, Inc. 102,676,504 2 2.83% 43,642,357 1 2.10%
Continental Gardens LP 81,020,767 3 2.23% 16,208,632 6 0.78% Briarwood Square LP 45,368,215 4 1.25% - - -
Brookfield Village Way LLC 31,086,113 5 0.86% - - -
Arrowhead Apartment Investments LLC 30,931,628 6 0.85% 20,039,766 4 0.97% Haulaway Storage Container 25,759,046 7 0.71% - 0.00% - Garden Terrace MHC LLC 21,430,625 8 0.59% - - -
Stanton Capital LP 20,232,452 9 0.56% - - -
Icon Owner Pool 1 LA Business Parks LLC 19,443,992 10 0.54% - - - 12131 Beach Boulevard Owner LLC - - -
CP Briarwood LLC - - - 28,208,832 2 1.36%
Shapell Socal Rental Properties LLC - - - 22,446,279 3 1.08% Walton CWCA Hoover 52 LLC - - - 19,078,003 5 0.92%
Faircrest, Inc. - - - 12,594,032 7 0.61%
Mideb Nominees, Inc. - - - 12,367,510 8 0.00%
Gilbert R. Shuman Trust Plaza on the Blvd. - - - 11,318,185 9 0.55% Katella 111 Partners LLC - - - 10,291,916 10 0.50%
Total Top 10 Taxpayers $ 507,649,342 13.99% 196,195,512 $ 9.46% Note:

Source: HdL, Coren & Cone
Excludes government and tax-exempt property owners. Changes in name or ownership of property are not considered for purposes of this schedule.

Assessed Valuation
2021-22 2012-13
Assessed Valuation

CITY OF STANTON

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
170

ATTACHMENT A

Fiscal Total Collected Percent
Year Tax Levy Amount of Levy (1)
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%
2022 1,079,628 1,079,628 100%
Note:

Source: Orange County Auditor-Controller
(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.

CITY OF STANTON

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
171

ATTACHMENT A

Tax Total % of
Fiscal Allocation Capital Primary Personal Per
Year Bonds (1) Lease Government Income (2) Capita (2)
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% -
2021-22 - - - 0.00% -
Notes:

Source: City Finance Department
(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.

LAST TEN FISCAL YEARS

RATIOS OF OUTSTANDING DEBT BY TYPE

CITY OF STANTON
172

ATTACHMENT A

2021-22 Assessed Valuation $ 3,635,925,454
Total Debt City's Share of
6/30/22 % Applicable (1) Debt 6/30/22
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District $ 20,175,000 0.106% $ 21,386 Coast Community College District 945,799,424 0.519% 4,908,699 North Orange County Joint Community College District 209,339,039 1.854% 3,881,146 Anaheim Union High School District 256,268,955 3.445% 8,828,465 Garden Grove Unified School District 532,420,000 5.936% 31,604,451 Magnolia School District 19,498,305 18.161% 3,541,087
Savanna School District 39,432,464 32.445% 12,793,863
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 65,579,097
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations $ 376,780,000 0.533% $ 2,008,237 Orange County Pension Obligation Bonds 521,784,000 0.533% 2,781,109 Orange County Board of Education General Fund Obligations 11,620,000 0.533% 61,935 Coast Community College District General Fund Obligations 1,865,000 0.519% 9,679 Coast Community College District Pension Obligation Bonds 1,825,000 0.519% 9,472 Anaheim Union High School District Certificates of Participation 30,670,000 3.445% 1,056,582 Magnolia School District General Fund Obligations 13,010,307 18.161% 2,362,802 North Orange County Regional Occupation Program
Certificates of Participation 8,200,000 1.228% 100,696
City of Stanton - 100.000% -
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 8,390,512 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 100.000% 53,400,000 53,400,000 TOTAL DIRECT DEBT $ -
TOTAL OVERLAPPING DEBT 127,369,609
COMBINED TOTAL DEBT $ 127,369,609 (2)
Notes:

Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.80%
Total Direct Debt 0.00%
Total Combined Debt 3.50%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,627,851,990):

Total Overlapping Tax Increment Debt 2.03%
Source: California Municipal Statistics, Inc.
(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.

CITY OF STANTON

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
YEAR ENDED JUNE 30, 2022
173

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16
Assessed valuation 2,073,751,661 $ 2,146,057,305 $ 2,299,000,205 $ 2,433,204,888 $ Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 518,437,915 536,514,326 574,750,051 608,301,222 Debt limit percentage 15% 15% 15% 15%
Debt limit 77,765,687 80,477,149 86,212,508 91,245,183
Total net debt applicable to limit - - - -
Legal debt margin 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%
Sources: City Finance Department
HdL Coren & Cone
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.

CITY OF STANTON

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal Year
174

ATTACHMENT A

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
$ 2,566,311,820 $ 2,678,905,775 $ 2,834,604,233 $ 3,014,836,696 $ 3,294,354,368 $ 3,627,670,751 25% 25% 25% 25% 25% 25%
641,577,955 669,726,444 708,651,058 753,709,174 823,588,592 906,917,688 15% 15% 15% 15% 15% 15%
96,236,693 100,458,967 106,297,659 113,056,376 123,538,289 136,037,653 - - - - - -
$ 96,236,693 $ 100,458,967 $ 106,297,659 $ 113,056,376 $ 123,538,289 $ 136,037,653 0% 0% 0% 0% 0% 0%
Fiscal Year
175

ATTACHMENT A

Fiscal Tax
Year Increment Principal Interest Principal Interest Principal Interest Principal Interest 2012-13 -$ -$ -$ -$ -$ -$ -$ -$ -$
2013-14 - - - - - - - - -
2014-15 - - - - - - - - -
2015-16 - - - - - - - - -
2016-17 - - - - - - - - -
2017-18 - - - - - - - - -
2018-19 - - - - - - - - -
2019-20 - - - - - - - - -
2020-21 - - - - - - - - -
2021-22 - - - - - - - - -
Note:

Source: City Finance Department

CITY OF STANTON

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
(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.

Tax Allocation Bonds,
2011 Series A
Debt Service (1)
Tax Allocation Bonds, Tax Allocation Bonds, Tax Allocation Bonds, Debt Service (1) Debt Service (1)
2005 Series B
Debt Service (1)
2005 Series A 2010 Series A
176

ATTACHMENT A

Principal Interest Principal Interest Principal Interest Principal Interest Coverage -$ -$ -$ -$ -$ -$ -$ -$ 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
- - - - - - - - 0%
Tax Allocation Bonds, Tax Allocation Bonds,
2016 Series A
Debt Service (1) Debt Service (1)
Tax Allocation Bonds,
2011 Series B
Tax Allocation Bonds,
2016 Series B 2020 Series A
Debt Service (1) Debt Service (1)
177

ATTACHMENT A

Total
Median Personal Per Capital
Calendar Median Housing Income Personal Unemployment
Year Population Age Price (in thousands) Income Rate
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 18,422 5.3%
2017 39,470 34.4 450,000 747,172 18,930 4.1%
2018 39,307 34.5 432,000 781,143 19,873 3.2%
2019 39,077 34.5 445,000 825,807 21,133 3.1%
2020 39,573 34.9 470,000 900,452 22,754 10.7%
2021 39,275 35.7 550,000 1,017,211 25,900 7.1%
Source: HdL Coren & Coren

CITY OF STANTON

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
178

ATTACHMENT A

% of Total % of Total
City City
Employer Employees Rank Employment Employees Rank Employment Rowntree Gardens (formerly Quaker Gardens) 327 1 1.83% n/a - - Home Depot 181 2 1.01% 144 3 0.76%
Super King Market 150 3 0.84% n/a - -
Walmart Market #4134 127 4 0.71% n/a - -
CR&R, Inc. 122 5 0.68% 201 1 1.06%
Adventure City 112 6 0.63% 119 5 0.63%
Custom Pipe & Fabrication Inc. 106 7 0.59% 75 6 0.39%
All Metals Processing of Orange County, LLC 91 8 0.51% 124 4 0.65% White Bottle, Inc. 86 9 0.48% n/a - -
Great Scott Tree Service, Inc. 84 10 0.47% n/a - -
Food 4 Less 71 - 0.40% 68 7 0.36%
USS Cal Builders 30 - 0.17% n/a - -
Sam's Club - - - 149 2 0.78%
Acapulco Restaurants - - - 60 8 0.32%
Primus Inc. - - - 54 9 0.28%
Cameron Welding Supply - - - 52 10 0.27%
Total Top 10 Employers 1,487 8.31% 1,046 5.51%
Total City Labor Force 17,900 19,000
Notes:

Excludes employers not required to obtain a City business license (i.e. government agencies). n/a - Information not available
Sources: City business license database
Fiscal Year 2012-13 Comprehensive Annual Financial Report Employment Development Department (for City Labor Force data) 2021-22 2012-13

CITY OF STANTON

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
179

ATTACHMENT A

Department 2012-13 2013-14 2014-15 2015-16
Administration 4.00 4.00 4.00 4.00
Community Development (1) 7.50 7.50 7.50 8.50
Community Services 3.00 3.00 3.00 6.00
Finance 4.00 4.00 4.00 5.00
Public Safety (1) 0.00 0.00 0.00 0.00
Public Works 6.50 6.50 6.50 6.00
Total 25.00 25.00 25.00 29.50
Note:

Source: City Finance Department
(1) Code Enforcement and Parking Control were transferred to the Public Safety Department in Fiscal Year 2018-19.

CITY OF STANTON

FULL-TIME EQUIVALENT CITY EMPLOYEES BY DEPARTMENT

LAST TEN FISCAL YEARS
Fiscal Year
180

ATTACHMENT A

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

4.50 4.50 4.50 4.50 5.50 6.50

8.50 9.00 6.00 6.00 6.50 8.50

6.00 6.00 16.00 16.00 17.00 17.00

5.13 5.25 6.75 6.75 6.00 7.00

0.00 0.50 8.00 9.00 9.50 11.00

6.38 6.75 8.75 8.75 9.50 10.50

30.51 32.00 50.00 51.00 54.00 60.50
Fiscal Year
181

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16 2016-17
City Council
Public Meetings held 27 31 39 35 37
Ordinances adopted 16 10 7 13 14
Resolutions adopted 33 51 47 46 41
City Attorney
Ordinances prepared 11 10 7 13 15
Resolutions prepared 5 51 47 46 41
Contracts prepared n/a 50 75 86 88
City Clerk
Public Meetings held 27 36 39 35 37
Ordinances processed
and published 16 10 7 13 14
Resolutions processed
and published 33 51 47 46 41
Public Records Requests processed 189 217 301 300 278
Contracts Processed 204 50 75 86 88
City Manager
Letters written 63 31 35 42 44
Memos written 34 30 28 61 58
City Council meetings attended 26 31 39 35 36
Finance
Cash Receipts processed 6,356 7,001 7,572 8,961 10,260
Warrants processed 6,356 2,219 2,333 2,490 2,559
Payroll checks processed 1,106 1,365 1,141 1,613 1,769
Journal entries processed 255 252 296 247 281
Business licenses processed 1,497 1,788 1,974 2,197 2,946 Police Services
Cases assigned to
general crime investigators 1,464 1,283 1,421 835 1,582 Directed enforcement
shifts deployed each week 4 1.5 3 5 5
Average response time
in minutes to emergency
life threatening calls 3:28 3:53 4:03 3:50 4:03
Shifts of traffic enforcement
in high accident and
residential areas per week - 0.17 1 4 4
Schools receiving school
programs 2 2 2 1 n/a
Note:
n/a - Information not available
Department
Fiscal Year

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
182

ATTACHMENT A

2017-18 2018-19 2019-20 2020-21 2021-22
36 34 37 55 38
12 8 14 8 10
48 39 60 45 54
12 8 14 8 10
48 39 60 45 54
90 84 90 94 98
36 34 37 55 38
12 8 14 8 10
48 39 60 45 54
280 159 170 180 182
90 84 90 94 98
30 30 38 45 32
40 36 32 40 28
35 34 37 55 37
6,854 5,512 5,690 4,109 4,102
2,462 2,405 2,182 2,057 1,809
1,819 1,800 1,804 1,806 1,001
234 287 344 1,493 694
3,304 3,126 2,649 2,577 2,481
964 737 856 1,068 1,138
55555
4:05 4:21 3:50 4:17 4:14
44444
n/a n/a n/a n/a 2
Fiscal Year
183

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16
Fire Protection
Paramedic calls responded to 2,141 2,283 2,540 2,659
Fire calls responded to 55 38 41 54
Other calls responded to 682 558 532 699
Fire inspections made 224 485 505 602
Students receiving fire
safety education programs 140 145 175 490
Adults receiving fire
safety education programs 50 60 75 220
Plan checks completed 45574851
Planning
Administrative permits 6557
Preliminary plan review 1033
Entitlements 8 11 13 29
Environmental 11 16 13 26
Home Occupation permits 19 27 17 50
Land divisions 1315
Landscape plan checks 2204
Sign permits 25 42 48 23
Plan Checks (Over-the-Counter) 38 31 74 68
Building
Building plan reviews 61 148 108 101
Building permits 211 283 314 264
Electrical permits 114 197 229 233
Mechanical permits 70 119 132 120
Plumbing permits 112 139 134 150
Inspections for compliance 7000
Parking Control
Citations 6,478 6,335 6,361 6,843
Vehicles towed 217 242 220 299
Engineering
Value of capital projects initiated $1.6M $0.9M $11M $1M Engineering plan checks 14 15 17 7
Permits issued 106 111 95 132
Value of competitive grants obtained $0.4M $0.4M $0.1M $0.3M Capital projects administered 7 4 7 3
Public Facilities
Service requests 205 199 232 87
Unscheduled repairs 62 60 171 68
Department

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
Fiscal Year
184

ATTACHMENT A

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
2,192 2,627 2,794 6,307 3,323 3,724
37 42 55 222 182 196
1042 611 494 647 205 206
524 612 674 15 0 514
370 200 250 4 61 3
240 456 250 4 132 10
72 83 87 n/a 224 187
476534
261536
29 32 18 35 17 13
29 21 12 1 1 0
21 117 11 26 27 10
463651
-36333
26 32 25 27 8 19
70 147 93 103 112 109
101 138 94 82 121 672
254 368 358 450 535 495
214 242 239 307 398 151
112 145 156 219 223 50
124 194 174 275 253 52
000000
8,039 8,049 7,937 5,765 9,073 8,269
440 574 451 347 179 236
$1M $2.6M $3.0M $3.2M $1.47M $9.38M
7 10 8 15 4 10
132 135 204 102 100 165
$0.3M $0.2M $0 $0 $0 $8.13M
3 7 7 8 7 10
277 504 475 682 1,134 1,586
92 73 64 173 146 78
Fiscal Year
185

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16
Buildings/Grounds Maintenance
No. of service requests 68 70 112 57
HVAC service calls 16 14 7 4
Parks Maintenance
Service requests 43 65 112 61
Unscheduled repairs 3 10 8 25
Street Maintenance
Potholes repaired 10 17 15 10
Service requests 109 799 815 201
Tonnage of asphalt placed 6 6 8 6
Storm drain inlets cleaned 183 183 183 183
Service calls for drainage issues 2 6 2 1
Community Services
Senior clients served 2,400 2,800 2,425 2,450
Commission meetings0 0 11 10
After school program participation 150 312 210 220
Info & referral inquires answered 2,200 2,250 2,210 2,230 Sports facility usage (revenue) $8,000 $7,000 $1,500 $3,120 Department

CITY OF STANTON

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
Fiscal Year
186

ATTACHMENT A

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
64 64 120 189 1,134 1,586
3 3 13 17 8 11

72 226 229 478 2,298 1,723
17 32 68 83 103 67
43 14 35 66 87 79
227 702 698 872 2,830 1,720
6 6 3 2.5 3 3
183 183 183 183 183 183
3 3 5 16 8 4
2,600 3,600 4,000 8,271 15,613 15,882
999778
250 133 115 318 134 154
2,500 2,051 2,216 1,945 1,097 1,156
$13,760 $15,080 $12,600 $12,417 $23,141 $21,540
Fiscal Year
187

ATTACHMENT A

2012-13 2013-14 2014-15 2015-16 2016-17
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) 439,736 439,736 439,736 441,200 441,200
Sidewalks (square feet) 2,339,372 2,339,372 2,339,372 2,341,000 2,341,000 Streetlights 1,295 1,295 1,295 1,295 1,295
Traffic signals 15 15 15 16 16
Storm drain system
(linear feet) 26,889 26,889 26,889 26,889 26,889
Parks and Recreation
Parks 88899
Community Center 22233
Sewer
Sewer lines (miles) 40 40 40 40.5 40.5
Source: City Finance Department
Function
Fiscal Year

CITY OF STANTON

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
188

ATTACHMENT A

2017-18 2018-19 2019-20 2020-21 2021-22
44 44 44 44.1 44.1
326,000 324,185 324,185 324,185 324,185
441,200 441,200 441,445 441,445 441,445
2,341,000 2,341,000 2,343,100 2,343,100 2,343,100
1,295 1,295 1,295 1,295 1,295
16 16 16 16 16
26,889 26,889 26,889 26,889 26,889
99999
33333

40.5 40.5 40.5 40.5 40.5
Fiscal Year
189

ATTACHMENT A

This page intentionally left blank.
190

ATTACHMENT A

STANTON HOUSING AUTHORITY
(A COMPONENT UNIT OF

THE CITY OF STANTON)

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 202
Attachment: B
Click here to return to the agenda.

STANTON HOUSING AUTHORITY
(A COMPONENT UNIT OF

THE CITY OF STANTON)

ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022

ATTACHMENT B

STANTON HOUSING AUTHORITY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 13
STATEMENT OF ACTIVITIES 14

FUND FINANCIAL STATEMENTS
BALANCE SHEET – GENERAL FUND 16
RECONCILIATION OF THE BALANCE SHEET – GENERAL

FUND TO THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION 17

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – GENERAL FUND 18

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

GENERAL FUND TO THE GOVERNMENT-WIDE STATEMENT
OF ACTIVITIES 19
NOTES TO BASIC FINANCIAL STATEMENTS 21

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

1 Board of Directors
City of Stanton, California
Stanton, California
INDEPENDENT AUDITORS’ REPORT
Opinions
We have audited the accompanying financial statements of the governmental activities and major fund Stanton Housing Authority, a component unit of the City of Stanton, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Stanton Housing Authority’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and major fund Stanton Housing Authority, as of June 30, 2022, 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.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Stanton Housing Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com

ATTACHMENT B

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of proportionate share of the net pension liability and the schedules of contributions for the CalPERS miscellaneous plan, and the budgetary comparison schedule for the Stanton Housing 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 20, 2022, on our consideration of the Stanton Housing 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 City of Stanton’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 Stanton Housing Authority’s internal control over financial reporting and compliance.

Gruber and Lopez, Inc.

Newport Beach, California
December 20, 2022
Gruber and lopez, Inc.

ATTACHMENT B

3 MANAGEMENT’S DISCUSSION AND ANALYSIS

ATTACHMENT B

4 MANAGEMENT’S DISCUSSION AND ANALYSIS
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, 2022. 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, 2022, by $34.4 million. This amount is referred to as the net position of the Housing Authority. Of this amount, $13.3 million is restricted net position and may be used for the Housing Authority’s affordable housing programs. • During fiscal year 2021-22, the Housing Authority’s overall net position decreased by $248,312, million primarily due to unrealized losses on the Housing Authority’s investment portfolio and the payment made to The Related Companies of California, LLC to terminate their development agreement for the Tina Pacific Affordable Housing Project.

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

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 the 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 $34.4 million as of June 30, 2022. In comparison, total net position was $34.6 million as of June 30, 2021.

The largest portion of the Housing Authority’s net position at June 30, 2022, ($21.1 million or

61.4% 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.

ATTACHMENT B

6 The remaining $13.3 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.

A summary of the government-wide Statement of Net Position follows:
2022 2021 % Change
Current and other assets $ 14,212,674 $ 14,380,157 -1.2% Capital assets 21,081,772 20,795,128 1.4%
Total assets 35,294,446 35,175,285 0.3%
Deferred outflows of resources 36,347 64,465 -43.6%
Long-term liabilities 102,756 328,093 -68.7%
Other liabilities 780,435 304,376 156.4%
Total liabilities 883,191 632,469 39.6%
Deferred inflows of resources 97,475 8,842 1002.4%
Net position:
21,081,772 20,795,128 1.4%
Restricted 13,268,355 13,803,311 -3.9%
Total net position $ 34,350,127 $ 34,598,439 -0.7%
Investment in capital assets

ATTACHMENT B

7 A summary of the government-wide Statement of Activities follows:

During the current fiscal year, the Housing Authority’s net position decreased by $248,312 from the prior fiscal year, primarily as the result of unrealized losses on the Housing Authority’s investment portfolio and the payment made to The Related Companies of California, LLC to terminate their development agreement for the Tina Pacific Affordable Housing Project. 2022 2021 % Change
Revenues:

Program Revenue:

Charges for services $ 616,454 $ 562,993 9.5%
General revenues:

Investment earnings (loss) (120,362) 17,235 -798.4%
Gain on sale of capital assets 430,902 - 100.0%
Miscellaneous 14,006 1,271 1002.0%
Transfers from City of Stanton 25,093 - 100.0%
Total revenues 966,093 581,499 66.1%
Expenses:

General government 200,927 169,255 18.7%
Community development 883,219 2,458,516 -64.1%
Public safety 130,259 2,630,896 -1919.7%
Public works - 1,750 -100.0%
Total expenses 1,214,405 5,260,417 -76.9%
Change in Net Position (248,312) (4,678,918) -94.7%
Net position, beginning of year 34,598,439 39,277,357 -11.9% Net position, end of year $ 34,350,127 $ 34,598,439 -0.7%

ATTACHMENT B

8 Revenues increased by $384,594, or 66.1%, from the prior year.

Charges for services increased by $53,461, or 9.5% from the previous fiscal year due to additional rental income received during the current fiscal year. The Housing Authority changed its accounting practice for how the revenues and expenses activity from Quality Management Group (QMG), the Housing Authority’s property management company, are recorded in the Housing Authority’s books. For Fiscal Year 2021-22, the revenues and expenses are reported “gross” whereas in Fiscal Year 2020-21, the Housing Authority netted the amounts.

Investment earnings decreased by $137,597, or 798.4%, in Fiscal Year 2021-22 due to the change in the investment market. The average yield of the California Local Agency Investment Fund (LAIF) was 0.37% in fiscal year 2021-22, compared to 0.50% in fiscal year 2020-21.

During Fiscal Year 2021-22, the Housing Authority sold the property located at 7455 Katella Avenue for $756,902, which resulted in a realized gain of $430,902 (the difference between the sales proceeds and the original cost of the property).

Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2021-22 of Total 2020-21 (Decrease)
Charges for services $ 616,454 63.9% 53,461 $ 9.5%
Investment earnings (loss) (120,362) -12.5% (137,597) -798.4% Gain on sale of capital assets 430,902 44.6% 430,902 100.0% Miscellaneous 14,006 1.4% 12,735 1002.0%
Transfers from City of Stanton 25,093 2.6% 25,093 100.0% TOTAL REVENUES $ 966,093 100.0% 384,594 $ 66.1%

REVENUES BY SOURCE
Charges for services

63.9%
Investment
earnings (loss)
-12.5%
Gain on sale of
capital assets

44.6%
Miscellaneous

1.4%
Transfers from City
of Stanton

2.6%

REVENUES BY SOURCE
Fiscal Year 2021-22

ATTACHMENT B

9 The cost of all governmental activities during fiscal year 2021-22 was $1.2 million. The following table summarizes and presents expenses by function and percentages for the fiscal year ended June 30, 2022, along with the percentage changes from the prior year.

Expenses decreased by $4.0 million, or 76.9%, from the previous fiscal year. Significant changes in expense activity were:

Community development expenses decreased by $1.6 million, or 64.1%, primarily due to losses associated with the disposition of capital assets during fiscal year 2020-21. 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 during Fiscal Year 2020-21. 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).

Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2021-22 of Total 2020-21 (Decrease)
General government $ 200,927 16.5% 31,672 $ 18.7%
Community development 883,219 72.8% (1,575,297) -64.1%
Public safety 130,259 10.7% (2,500,637) -1919.7%
Public works - 0.0% (1,750) -100.0%
TOTAL EXPENSES $ 1,214,405 100.0% (4,046,012) $ -76.9%

EXPENSES BY FUNCTION
General government

16.5%
Community
development

72.8%
Public safety

10.7%

EXPENSES BY FUNCTION
Fiscal Year 2021-22

ATTACHMENT B

10 Public safety expenses decreased by $2.5 million, or 1919.7% from the previous year. 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.

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

As of June 30, 2022, the General Fund reported a restricted fund balance of $13.4 million, which represents a decrease of $643,542, or 4.6%, from the previous fiscal year, primarily due to unrealized losses on the Housing Authority’s investment portfolio and the payment made to The Related Companies of California, LLC, previously discussed.

CAPITAL ASSETS
Total capital assets increased by $286,644 or 1.4% from the previous fiscal year. Land increased by $569,250 or 3.9%. During Fiscal Year 2021-22, the Housing Authority purchased the property located at 11870 Beach Boulevard from the City of Stanton for $895.250. In addition, the Housing Authority sold the property located at 7455 Katella Avenue to KB Home Coastal, Inc. Buildings and improvements decreased by $282,606, or 4.6% to account for current year depreciation Additional information on the Housing Authority’s capital assets can be found in Note 3 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 Fiscal Year 2022-23 Adopted Budget includes a 52.5% reduction in revenues and 71.2% reduction in expenditures due to one-time revenues received and expenditures incurred during fiscal year 2021-22. The Fiscal Year 2022-23 budget was balanced after using $689,895 in fund balance.
2022 2021
%
Change
Land $ 15,243,865 $ 14,674,615 3.9%
Buildings and improvements 5,837,907 6,120,513 -4.6%
Totals $ 21,081,772 $ 20,795,128 1.4%

ATTACHMENT B

11 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

12 GOVERNMENT-WIDE FINANCIAL STATEMENTS

ATTACHMENT B

Governmental
Activities

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Cash and investments (Note 2) $ 13,145,899
Receivables 47,995
Prepaid items 780
Notes and loans receivable (Note 4) 1,018,000
Capital assets (Note 3):

Non-depreciable 15,243,865
Depreciable, net 5,837,907
Total assets 35,294,446
Deferred pension related items (Note 5) 36,347
Total deferred outflows of resources 36,347

LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
Accounts payable 54,962
Due to the City of Stanton (Note 2) 711,903
Deposits payable 12,700
Unearned revenue 870
Long-term liabilities:

Net pension liability (Note 5) 102,756
Total liabilities 883,191
Deferred pension related items (Note 5) 97,475
Total deferred inflows of resources 97,475

NET POSITION
Net investment in capital assets 21,081,772
Restricted for:

Low and moderate income housing 13,268,355
Total net position $ 34,350,127

STANTON HOUSING AUTHORITY
Statement of Net Position
June 30, 2022
See accompanying notes to the basic financial statements. 13 ATTACHMENT B

Net (Expense)
Revenue and
Changes in
Net Position
Operating Capital Governmental
Charges for Grants and Grants and Activities
Expenses Services Contributions Contributions Total
Governmental activities:

General government $ 200,927 $ - $ - $ (200,927) - $
Public safety 130,259 - - - (130,259)
Community development 616,454 883,219 - - (266,765)
Total governmental activities 1,214,405 $ 616,454 $ - $ - $ (597,951) General revenues:

Investment earnings (loss) (120,362)
Gain on the sale of capital assets 430,902
Miscellaneous 14,006
Transfers from City of Stanton 25,093
Total general revenues and transfers 349,639
Change in net position (248,312)
Net position - beginning of year 34,598,439
Net position - end of year $ 34,350,127

STANTON HOUSING AUTHORITY
Statement of Activities
For the Year Ended June 30, 2022
Program Revenues
Functions/Programs
See accompanying notes to the basic financial statements. 14 ATTACHMENT B

15 FUND FINANCIAL STATEMENTS

ATTACHMENT B

Cash and investments $ 13,145,899
Receivables:

Accounts 23,273
Interest 24,722
Prepaid costs 780
Notes and loans receivable 1,018,000
Total assets $ 14,212,674

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 54,962
Due to the City of Stanton 711,903
Deposits payable 12,700
Unearned revenues 870
Total liabilities 780,435
Fund Balances:

Nonspendable 1,018,780
Restricted for Low and Moderate-Income Housing 12,413,459 Total fund balances 13,432,239
Total liabilities and fund balances $ 14,212,674
ASSETS

STANTON HOUSING AUTHORITY
June 30, 2022
Balance Sheet - General Fund
See accompanying notes to the basic financial statements. 16 ATTACHMENT B

Total Fund Balances - Total Governmental Funds $ 13,432,239 Capital assets 23,722,030
Accumulated depreciation (2,640,258)
Total capital assets 21,081,772
Deferred Outflows of Resources - Pension Related 36,347 Deferred Inflows of Resources - Pension Related (97,475) Net Pension Liability (102,756)
Net position of governmental activities $ 34,350,127
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.

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.

STANTON HOUSING AUTHORITY
Reconciliation of the Balance Sheet - General Fund
to the Government-wide Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

See accompanying notes to the basic financial statements. 17 ATTACHMENT B

REVENUES:

Investment income (loss) (120,362) $
Rental income 616,454
Miscellaneous 14,006
Total revenues 510,098
EXPENDITURES:

Current:

General government 172,135
Public safety 111,593
Community development 756,657
Total expenditures 1,040,385
REVENUES OVER (UNDER) EXPENDITURES (530,287)
OTHER FINANCING SOURCES (USES):

Sale of capital assets 756,902
Transfers from City of Stanton 19,843
Transfers to City of Stanton (890,000)
Total other financing sources (uses) (113,255)
NET CHANGE IN FUND BALANCE (643,542)
Fund balances, beginning of year 14,075,781
Fund balances, end of year 13,432,239 $
Statement of Revenues, Expenditures, and Changes in Fund Balance -

STANTON HOUSING AUTHORITY
General Fund
For the Year Ended June 30, 2022
See accompanying notes to the basic financial statements. 18 ATTACHMENT B

Net Change in Fund Balances - Total Governmental Funds $ (643,542) Depreciation expenses (282,606)
Acqusition of land from the City of Stanton 895,250
Loss on disposition of capital assets (326,000)
Total capital assets 286,644
108,586
Change in net position of governmental activities $ (248,312) 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.

STANTON HOUSING AUTHORITY
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance - General Fund to the Governmental-wide Statement of Activities For the Year Ended June 30, 2022
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.

Governmental activities in the Statement of Activities were reported differently because:

See accompanying notes to the basic financial statements. 19 ATTACHMENT B

20 NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
21 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, 2022
22 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, 2022
23 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, 2022
24 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, 2022
25 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, 2022
26 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, 2022
27 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, 2022, were classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 13,145,899
Cash and investments as of June 30, 2022, consists of the following:

Local Agency Investment Fund (LAIF) $ 13,145,899

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
28 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, 2022, the Authority has an amount due to the City of $711,903.

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, 2022
29 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, 2022
30 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, 2022, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $14,674,615 895,250 (326,000) 15,243,865
Total non-depreciable 14,674,615 895,250 (326,000) 15,243,865 Depreciable:

Buildings and improvements 8,478,165 - - 8,478,165
Less accumulated
depreciation for:

Buildings and improvements (2,357,652) (282,606) - (2,640,258)

Total depreciable
capital assets, net 6,120,513 (282,606) - 5,837,907
Total capital assets, net $20,795,128 612,644 (326,000) 21,081,772 NOTE 4 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2022, was as follows:

Stanton Accessible Apartments Construction $ 391,184
First-Time Home Buyer 40,000
Housing Rehabilitation 978,000
Allowance for Doubtful Accounts (391,184)
Total $ 1,018,000
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, 2022, was $391,184, with an allowance for the forgivable amount of $391,184.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
31 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, 2022, 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, 2022, was $978,000.

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

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
32 NOTE 5 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
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.

The plans’ provisions and benefits in effect at the measurement date ended June 30, 2021, are summarized as follows:

Miscellaneous
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 7.000% 7.000% 6.750% Required Employer Contribution Rates
Normal Cost Rate 10.880% 8.650% 7.590%
Payment of Unfunded Liability $ 15,675 $ 57 $ 159
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. 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 Authority is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Authority 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 Authority’s portion of the pension contributions for the year ended June 30, 2022 was $21,831.

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
33 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the Authority reported net pension liabilities for its proportionate shares of the net pension liability of each plan as follows:

Miscellaneous
Proportionate
Share of
Net Pension
Liability
$ 102,756
The Authority’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, 2021, 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, 2020, rolled forward to June 30, 2021, using standard update procedures. The Authority’s proportionate share of the net pension liability was based on a projection of the Authority’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The Authority’s proportionate share of the net pension liability for each plan as of the measurement date ended June 30, 2020 and 2021, was as follows:

Miscellaneous
Proportion - June 30, 2020 5.44000%
Proportion - June 30, 2021 2.95000%
Change - Increase (Decrease) (2.49000%)
For the year ended June 30, 2022, the Authority recognized pension expense of $37,960. At June 30, 2022, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 21,831

-
Change in proportion 2,993 (305)
Difference in actual contributions vs.
proportionate share of contributions

-

(7,469)
Difference between expected and
actual experience

11,523

-
Differences between projected and
actual earnings on plan investments

-

(89,701)

Total $36,347 (97,475)

ATTACHMENT B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
34 NOTE 5 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred outflows of resources related to contributions subsequent to the measurement date reported as $21,831, will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

Miscellaneous
2023 $ (18,499)
2024 (19,005)
2025 (20,666)
2026 (24,789)
$ (82,959)
Actuarial Assumptions
The total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increase (1)
Mortality Rate Table (2)
Post-Retirement Benefit Increase
(1) Varies by entry age and service.
(3)
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to 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 B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
35 NOTE 5 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
Asset
Asset Class (a) Allocation
Real Return
Years
1 - 10 (b)
Real Return
Years
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 B

STANTON HOUSING AUTHORITY

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
36 NOTE 5 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 Authority’s proportionate share of the net pension liability for each plan, calculated using the discount rate for each plan, as well as what the Authority’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
1% Decrease 6.15%
Net Pension Liability $ 199,015
Current Discount Rate 7.15%
Net Pension Liability $ 102,756
1% Increase 8.15%
Net Pension Liability (Asset) $ 23,180
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s
separately issued CalPERS financial reports.
fiduciary net position is available in the
C. Payable to the Pension Plans
At June 30, 2022, the Authority had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2022.

NOTE 6 SUBSEQUENT EVENTS
Management has evaluated subsequent events through December 20, 2022 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the Authority.

ATTACHMENT B

37 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

ATTACHMENT B

Fiscal year ended June 30 2022 2021 2020 2019 2018
Measurement period June 30 2021 2020 2019 2018 2017
Proportion of the net pension liability 2.95% 5.44% 3.39% 3.39% 3.39% Proportionate share of the net pension
liability $ 102,756 $ 328,093 $ 188,943 $ 171,503 $ 174,231 Covered payroll $ 171,435 $ 92,886 $ 86,249 $ 89,653 $ 74,185 Proportionate Share of the net pension
liability as percentage of covered payroll 59.94% 353.22% 219.07% 191.30% 234.86% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 88.29% 74.82% 75.26% 75.26% 73.31% 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 eight years are shown.

STANTON HOUSING AUTHORITY
Schedule of Proportionate Share of the Net Pension Liability Year Ended June 30, 2022
Last 10 Fiscal Years *
38 ATTACHMENT B

Fiscal year ended June 30 2017 2016 2015
Measurement period June 30 2016 2015 2014
Proportion of the net pension liability 3.39% 3.39% 3.39% Proportionate share of the net pension
liability $ 148,691 $ 110,824 $ 123,495
Covered payroll $ 71,092 $ 66,722 $ 63,893
Proportionate Share of the net pension
liability as percentage of covered payroll 209.15% 166.10% 193.28% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 74.06% 82.31% 80.06%

STANTON HOUSING AUTHORITY
Schedule of Proportionate Share of the Net Pension Liability Last 10 Fiscal Years * (Continued)
Year Ended June 30, 2022
39 ATTACHMENT B

Fiscal year ended June 30 2022 2021 2020 2019 2018
Contractually required contribution (actuarially determined) $ 37,811 37,960 $ 20,389 $ 15,914 $ 13,655 $ Contributions in relation to the actuarially
determined contributions (37,960) (37,811) (20,389) (15,914) (13,655) Contribution deficiency (excess) -$ - $ - $ - $ - $
Covered payroll 105,085 $ 171,435 $ 92,886 $ 86,249 $ 89,653 $ Contributions as a percentage of covered payroll 36.12% 22.06% 21.95% 18.45% 15.23% Notes to schedule:

Valuation date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 0.000% 2.500% 2.625% 2.750% 2.750%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 0.00% (3) 7.00% (3) 7.25% (3) 7.375% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 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 eight years are shown.

Year Ended June 30, 2022

STANTON HOUSING AUTHORITY
Schedule of Contributions
Last 10 Fiscal Years *
40 ATTACHMENT B

Fiscal year ended June 30 2017 2016 2015
Contractually required contribution (actuarially determined) 11,105 $ 9,765 $ 25,263 $ Contributions in relation to the actuarially
determined contributions (11,105) (9,765) (25,263)
Contribution deficiency (excess) -$ - $ - $
Covered payroll 74,185 $ 71,092 $ 66,722 $
Contributions as a percentage of covered payroll 14.97% 13.74% 37.86% Notes to schedule:

Valuation date 6/30/2014 6/30/2013 6/30/2012
Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age
Amortization method (1) (1) (1)
Asset valuation method Fair Value Fair Value
15 Year
Smoothed
Market
Method
Inflation 2.750% 2.750% 2.750%
Salary increases (2) (2) (2)
Investment rate of return 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4)
Mortality (5) (5) (5)
Year Ended June 30, 2022

STANTON HOUSING AUTHORITY
Schedule of Contributions
Last 10 Fiscal Years * (Continued)
41 ATTACHMENT B

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Investment income (loss) 150,000 $ 50,000 $ (120,362) $ (170,362) $ Rental income 500,000 500,000 616,454 116,454
Miscellaneous 2,000 2,000 14,006 12,006
Total revenues 652,000 552,000 510,098 (41,902)

EXPENDITURES
Current:

General government 279,565 279,565 172,135 107,430
Public safety 297,960 2,437,790 111,593 2,326,197
Community development 508,075 815,575 756,657 58,918
Capital outlay - 2,600,000 - 2,600,000
Total expenditures 1,085,600 6,132,930 1,040,385 5,092,545

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,580,930) (433,600) (530,287) (5,134,447)

OTHER FINANCING SOURCES
(USES)
Sale of capital assets - 682,000 756,902 74,902
Transfer from City of Stanton - - 19,843 19,843
Transfer to City of Stanton (890,000) - (890,000) -
Total other financing sources (uses) - (208,000) (113,255) 94,745 Net change in fund balance $ (5,788,930) (433,600) $ (643,542) (5,039,702) $ Fund balance, beginning of year 14,075,781
Fund balance, end of year 13,432,239 $

STANTON HOUSING AUTHORITY
Budgetary Comparison Schedule
For the Year Ended June 30, 2022
42 ATTACHMENT B

STANTON HOUSING AUTHORITY
43 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
NOTE 1 BUDGET AND BUDGETARY ACCOUNTING
The Authority adopts an annual budget prepared on the modified accrual basis. The Executive Director is required, under Municipal Code Section 2.08.050, to prepare and submit to the Board of Directors the annual budget of the Authority and administer it after adoption. Legally, expenditures may not exceed total appropriations at the fund level. The Executive Director is authorized to transfer budgeted amounts within the accounts of any fund; however, any revisions between funds must be approved by the Board of Directors.

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 Board of Directors or Executive Director.

ATTACHMENT B

CITY OF STANTON
Stanton, California
Report on Communication
With Those Charged with Governance
June 30, 2022
Attachment: C
Click here to return to the agenda.

CITY OF STANTON
Stanton, California
Report On Communication
With Those Charged With Governance
June 30, 2022
INDEX
PAGE
REPORT ON COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 1 - 3 EXHIBIT A - GENERAL RECOMMENDATIONS 4 - 5

ATTACHMENT C

1 438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
City of Stanton
Stanton, California
To the Honorable Mayor and City Council:

We have audited the financial statements of the government activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Stanton, California (City) for the year ended June 30, 2022, and have issued our report thereon dated February 16, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the engagement contract dated July 11, 2022.

Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practice
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City adopted Statement on Governmental Accounting Standards (GASB Statements) No. 87-Leases; No 89-Accounting for Interest Cost Incurred Before the End of a Construction period; No. 90- Majority Equity Interest; No. 93- Replacement of Interbank Offered Rates; and No. 97- Certain Component Unit Criteria for Internal Revenue Code 457 Deferred Compensation Plans. The adoption of the GASB Nos. 87, 89, 90, 93, and 97 did not significantly impact the City. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of capitalizing certain infrastructure assets that prolong its’ useful life (as opposed to classifying as routine maintenance expense) and depreciation expense on capital assets. We have evaluated the key factors and assumptions used to estimate the capitalization of infrastructure assets and useful lives on depreciation expense in determining that they are reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net pension liability and net OPEB liability and their allocation to various funds. We have evaluated the key factors and assumptions used to estimate the net pension liability and its allocation to various funds of the City in determining that they are reasonable in relation to the financial statements taken as a whole.

ATTACHMENT C

2 City of Stanton
Honorable Mayor and City Council
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:
 The disclosure of Contingencies in Note 15 to the financial statements concerning potential claims against the City for possible disallowed costs or noncompliance with certain grantor restrictions. As of the date of this letter, Management is not aware of any disallowed costs or noncompliance with grantor restrictions.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We noted no significant adjustments as a result of audit procedures. We were not aware of any significant uncorrected misstatements.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 16, 2023.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Stanton’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

ATTACHMENT C

3 City of Stanton
Honorable Mayor and City Council
Other Matters
We applied certain limited procedures to City of Stanton, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as described in the table of contents in the financial statements, which accompany the financial statements but are not RSI.

With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the supplementary information as described in the table of contents in the financial statements, which accompany the financial statements but are not RSI.

We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

Restriction on Use
This report is intended solely for the information and use of the City Council and management, and is not intended to be and should not be used by anyone other than these specified parties.

GRUBER AND LOPEZ, INC.

Newport Beach, California
February 16, 2023 Gruber and Lopez, Inc.

ATTACHMENT C