Stanton City Council
February 11, 2025

ATTACHMENT A

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ATTACHMENT A

ORDERING DOCUMENT
Oracle America, Inc.
500 Oracle Parkway
Redwood Shores, CA
94065
Name City of Stanton Contact Michelle Bannigan
Address 7800 Katella Ave
Stanton  CA
90680
Phone Number
Email Address
(714) 890-4223
[email protected]
Expansion
Services Period: 57 months
Cloud Services
Data Center
Region
Quantity Term List Fee
Discount
%
Unit Net Price Net Fee
B94584 - Oracle NetSuite for
Government Cloud Service,
Additional General User - Hosted
Named User
NORTH

AMERICA
24 57 mo 67,032.00 22.05 30,164.40
B94587 - Oracle NetSuite for
Government Cloud Service,
Additional Planning and Budgeting
User - Hosted Named User
NORTH

AMERICA
9 57 mo 61,560.00 54.00 27,702.00
Subtotal 128,592.00 57,866.40
Fee Description Net Fee
Cloud Services Fees 57,866.40
Net Fees 57,866.40
Total Fees 57,866.40
Issued by Oracle America, Inc. 18-DEC-2024

ATTACHMENT B

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A. Terms of Your Order

1. Applicable Agreement:
a. US-GMA-1301562 (AR2487)_PA_Stanton

2. Cloud Payment Terms:
a. Net 30 days from invoice date

3. Cloud Payment Frequency:
a. Quarterly in Arrears

4. Currency:
a. US Dollars

5. Offer Valid through:
a. 28-FEB-2025

6. Service Specifications
a. The Service Specifications applicable to the Cloud Services and the Consulting/Professional Services ordered may be accessed at http:// www.oracle.com/contracts.

7. Services Period
a. The Services Period for the Services commences on the date stated in this order. If no date is specified, then the "Cloud Services Start Date" for each Service will be the date that you are issued access that enables you to activate your Services, and the "Consulting/Professional Services Start Date" is the date that Oracle begins performing such services.

B. Additional Order Terms

1. Expansion
For avoidance of doubt, the additional quantities of Cloud Services that are ordered hereunder are subject to the terms of the initial order between You and Oracle for such Cloud Services. If the billing frequency has changed between the initial order and this order, the billing frequency specified in this order shall take precedence.

2. Terms
The following terms, as used in this order or the Agreement and whether or not capitalized, shall have the same meaning as the applicable defined term:
"Agreement" and "Master Agreement"; "Customer", "Client" "Company" and "You"; "Program Documentation" and "Documentation"; "Ordering Document", "Services Order", "order" and "Order Form"; "Services Term" and "Services Period"; "Your Data", "Client Data", "Company Data" and "Your Content".

3. Service Specifications and Order Terms
"Service Specifications" means the following documents, as applicable to the Services under Your order: (a) the Oracle Cloud Hosting and Delivery Policies, the Program Documentation, the Oracle service descriptions, and the Oracle Corporate Security Practices; (b) Oracle's privacy policies; and (c) any other Oracle documents that are referenced in or incorporated into Your order. The following do not apply to any non-cloud Oracle Services acquired under Your order, such as professional services: the Oracle Cloud Hosting and Delivery Policies and Program Documentation. The following do not apply to any Oracle-provided Software: the Oracle Cloud Hosting and Delivery Policies.

During the Services Period, we may update the Services and Service Specifications to reflect changes in, among other things, laws, regulations, rules, technology, industry practices, patterns of system use, and availability of third party content. Oracle updates to the Services or Service Specifications will not materially reduce the level of performance, functionality, security or availability of the Services during the Services Period of Your order.

All Services listed on this order are provided by Oracle under, and subject to, the terms of this order, including the Agreement and all Oracle documents referenced in this order. As applicable, Oracle processes a customer's order after receipt of a purchase order, a valid credit card or payment via Paypal.

Any terms and conditions on Your purchase order are void and have no legal effect. For Cloud Services, You may not reduce the quantity of Services purchased hereunder (e.g., user or record counts, storage, etc.), in whole or in part, during the Services Period set forth above. Once placed, Your order is non-cancelable and the sums paid nonrefundable, except as otherwise provided herein or in the Agreement.

4. Non-Appropriation
In the event funds are not appropriated for a new fiscal year period, You may terminate this order immediately without penalty or expense; provided, however, that: (a) for each of the 12-month terms of the order, You must provide a purchase order, and (b) Your issuance of each 12-month purchase order shall signify to Oracle that all funds for the given 12-month term have been fully appropriated and encumbered. Notwithstanding the foregoing, You agree to pay for all Services performed by Oracle prior to Oracle's receipt of Your notice of non-appropriation.

Issued by Oracle America, Inc. 18-DEC-2024

ATTACHMENT B

5. Order of Precedence
This order, including any subject matter addressed in the Service Specifications, shall supersede any inconsistent term, similar subject matter or scope of service delivery in the Agreement referenced above in Section A.1; however, unless expressly stated otherwise in this order, the terms of the Data Processing Agreement shall take precedence over any inconsistent terms in this order, the Agreement or other Service Specifications. This order will control over the terms contained in any purchase order.

6. No Auto-Renewal
Notwithstanding any statement to the contrary in the Service Specifications, the parties expressly agree that the Services acquired under this order will not Auto-Renew.

City of Stanton
Signature
Name
Title
Signature Date

BILL TO / SHIP TO INFORMATION
Bill To Ship To
Customer Name City of Stanton Customer Name City of Stanton Customer Address 7800 Katella Ave
Stanton  CA
90680
Customer Address 7800 Katella Ave
Stanton  CA
90680
Contact Name Michelle Bannigan Contact Name Michelle Bannigan Contact Phone (714) 890-4223 Contact Phone (714) 890-4223 Contact Email [email protected] Contact Email [email protected] Issued by Oracle America, Inc. 18-DEC-2024

ATTACHMENT B

Cloud_Ordering Document Amendment_v090319_US_ENG Page 2 of 2 The cloud services listed in the tables above section A may not be renewed at the Option Renewal Period pricing specified above if (i) Oracle is no longer making such cloud services generally available to customers, or (ii) You are seeking to cancel or reduce the number of user licenses of the cloud services specified in this ordering document, as amended by Amendment One to this order.”

2. ORDER OF PRECEDENCE. The parties agree that the terms of this Amendment One will prevail in the event of any inconsistencies with any terms of the Ordering Document.

Other than the addition of the changes above, the terms and conditions of the Ordering Document remain unchanged and in full force and effect.

This Amendment One is valid through _________________ and shall become binding upon execution by You and acceptance by Oracle.

City of Stanton Oracle America, Inc.

Authorized Signature: Authorized Signature:

Name: _ Name:

Title: Title:

Signature Date: Signature Date:

Effective Date of this Amendment One:
(To be completed by Oracle)

ATTACHMENT C

CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: February 11, 2025
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2023-24 AND RELATED AUDIT REPORTS
REPORT IN BRIEF:

Each year the City issues an Annual Comprehensive Financial Report (ACFR), which summarizes the financial activity of a local government for a given fiscal year in accordance with financial statement presentation requirements prescribed by government accounting standards (Attachment A). The ACFR is accompanied by an opinion from the City’s audit firm. The audit firm’s opinion on the City’s 2023-24 ACFR is a clean opinion, with no exceptions, modifications, or qualifications. (The audit firm also issued a separate report for the Housing Authority’s 2023-24 audited financial statements. The single audit report on Attachment C was required for the Fiscal Year 2023-24 audit because the City spent more than $750,000 on federal grant funds. No findings or questioned costs are identified in this report. In addition, the City’s auditors issue other reports in relation to the City’s audit. These reports are provided in Attachments D and E.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Receive and file the Annual Comprehensive Financial Report (ACFR), and related audit reports.

ANALYSIS/JUSTIFICATION:

An ACFR is organized into three sections: the introductory section, the financial section, and the statistical section. The introductory section includes a letter of transmittal that provides an overview of the City. The financial section includes the audit opinion, management’s discussion and analysis, government-wide financial statements, notes to the financial statements, and supplementary schedules. Management’s discussion and Item: 9K
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analysis provides narrative information as well as an overview and analysis of the City’s financial statements. The statistical section provides operational and demographic statistics and ten years of selected financial data.

Government-wide Financial Statements
The government-wide financial statements that are included in the ACFR provide the reader with an opportunity to ascertain the financial status of all funds and activities of the City in a single consolidated presentation. As of June 30, 2024, the City held $179.6 million in assets (Attachment A, page 44). Those assets consisted of cash and investments, including cash held for OPEB (other post-employment benefits) ($75.9 million), capital assets ($95.6 million), and receivables and prepaid expenses ($8.1 million).

The government-wide financial statements also display the obligations of the City that represent claims against those assets. As of June 30, 2024, the City owed $13.7 million consisting of short-term obligations ($4.3 million), long-term obligations ($0.4 million), and the City’s unfunded pension liability for employee service rendered to date ($9.0 million) (Attachment A, page 44).

The government-wide financial statements also report a consolidation of all revenues and expenses of the City. On a consolidated basis, City revenues exceeded expenses by $6.5 million (Attachment A, page 46).

Fiduciary funds are funds held on behalf of other parties. These funds (North Orange County Public Safety Collaborative Fund and the Successor Agency to the Stanton Redevelopment Agency Fund) are excluded from the government-wide financial statements.

Fund Financial Statements
Local governments typically receive funding from multiple sources, some of which are restricted to specific uses and some of which are unrestricted. As a result, local governments establish separate funds to segregate the resources that are restricted for specific programs and activities. The fund financial statements that are contained in the ACFR display the financial activity of major funds in separate columns so that the reader can ascertain the revenues, expenditures, and remaining unspent fund balance of each of those major funds.

One of the City’s major funds is the General Fund. The General Fund is the primary operating fund of the City that pays for much of the City’s day-to-day operating expenditures. The General Fund (Funds 101, 102, and 801) accounts for the unrestricted resources of the City, the spending of which can be directed by City Council toward any lawful public use. (Fund 801, the City’s Developer Deposits Fund, is not included in the City’s General Fund revenue and an expenditure report is provided to the City Council monthly. The City’s auditors include this fund with the General Fund for ACFR reporting purposes in accordance with government accounting standards.) As of June 30, 2024, the General Fund’s spendable fund balance was $36.3 million. Of this amount, $1.3 million was set aside for expenditures that were budgeted in Fiscal Year 2023-24 that were delayed and will be spent in Fiscal Year 2024-25; $5.0 million was set aside by the City Council on June 13, 2023, to allocate to fund special projects that were formerly funded by the American Rescue Plan Act (ARPA) funding; $14.4 million represents reserves set aside by the City Council with the adoption of Resolution No. 2022-24 for certain contingencies such as: economic uncertainty, emergency equipment and maintenance, emergency disaster, and capital improvements. In addition, $1.8 million was set aside for future appropriations in accordance with the provisions contained in various developer agreements. After accounting for those amounts, there was $13.8 million in the General Fund’s fund balance available for appropriation (Attachment A, page 105).

Housing Authority Audited Financial Statements (Attachment B) This report is a clean report with no findings identified. Staff transmitted this report to the City Council with staff’s December General Information issue communicated on December 19, 2024, in compliance with Senate Bill 341. The Housing Authority’s audited financial statements report that the Housing Authority’s net position (the amount that assets exceed liabilities) was $30.5 million as of June 30, 2024 (Attachment B, page 16). Most of the Housing Authority’s assets are in the form of cash and investments ($9.9 million) and capital assets (consisting of land and buildings and improvements) associated with the Tina-Pacific properties ($20.3 million). In Fiscal Year 2023-24, the Housing Authority’s expenses exceeded revenues by $815,153 (Attachment B, page 17), primarily due to legal expenses and relocation payments (including consultant costs) associated with the Tina-Pacific properties.

Single Audit Report (Attachment C)
This report is a clean report with no findings identified. The Single Audit Act and Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, requires entities that expend equal to or more than $750,000 in federal expenditures in a fiscal year to have an audit performed in accordance with the Single Audit Act. (The dollar threshold increases to $1,000,000 in Fiscal Year 2025-26.) During the fiscal year ended June 30, 2024, the City spent approximately $2.1 million on federal expenditures (Attachment C, page 8). The Congressionally Recommended Award program issued by the Department of Justice was the major program the auditors reviewed during the course of this audit. The majority of the expenditures for this grant program were reimbursements made to The Hope Center of Orange County.

Other Related Audit Reports
In addition to the audit firm’s opinion on the fair presentation of the City’s financial statements, audit firms are required to provide certain related audit communications whenever they perform an audit of local government financial statements. Those related audit communications are included as Attachments D and E to this agenda report. The content of these required audit communications is described below:
• Report on Those Charged With Governance (Attachment D) – This report communicates the inherent limitations of the audit process, assumptions that underlie the financial reporting process for all local governments and identifies any material misstatements or difficulties that were detected in the performance of the audit. For Fiscal Year 2023-24, this report is a clean report with no such matters noted.
• Article XIIIB Limit on Appropriations (Gann Limit) (Attachment E) – This report communicates the audit firm’s testing of the City’s computation of the statutory appropriation limit (Gann Limit). No findings are identified in this report.

FISCAL IMPACT:

Not applicable.

ENVIRONMENTAL IMPACT:

This action is not a project per the California Environmental Quality Act.

LEGAL REVIEW:

Not applicable.

PUBLIC NOTIFICATION:

Through the regular agenda posting process.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 4: Ensure fiscal stability and efficiency in governance.

Prepared by: Michelle Bannigan, Finance Director
Approved by: Hannah Shin-Heydorn, City Manager
ATTACHMENTS:

A. Annual Comprehensive Financial Report
B. Housing Authority Financial Statements
C. Single Audit Report
D. Report on Communication With Those Charged with Governance E. Article XIIIB Limit on Appropriations (Gann Limit)
7800 KATELLA AVENUE, STANTON, CA 90680 | (714) 379-9222 | STANTONCA.GOV ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024

CITY OF STANTON, CALIFORNIA

ATTACHMENT A

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CITY OF STANTON, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL STATEMENT REPORT
YEAR ENDED JUNE 30, 2024
Prepared by
Finance Department

ATTACHMENT A

ATTACHMENT A

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN

FINANCIAL REPORTING VII

ORGANIZATION CHART VIII
PRINCIPAL OFFICIALS AS OF JUNE 30, 2024 IX

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 5
BASIC FINANCIAL STATEMENTS:

GOVERNMENTAL-WIDE FINANCIAL STATEMENTS:

STATEMENT OF NET POSITION 23
STATEMENT OF ACTIVITIES 24
GOVERNMENTAL FUNDS:

BALANCE SHEET 28

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE

SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET
POSITION 29

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 30

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES, AND CHANGES IN FUND

BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF
ACTIVITIES 31
PROPRIETARY FUNDS:

STATEMENT OF NET POSITION 34

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 35
STATEMENT OF CASH FLOWS 36
FIDUCIARY FUNDS:

STATEMENT OF FIDUCIARY NET POSITION 38
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 39
NOTES TO BASIC FINANCIAL STATEMENTS 42

ATTACHMENT A

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

FINANCIAL SECTION (CONTINUED)

REQUIRED SUPPLEMENTARY INFORMATION

CALPERS MISCELLANEOUS PENSION PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY 94
SCHEDULE OF CONTRIBUTIONS 96

CALPERS SAFETY PENSION PLAN

SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY 98
SCHEDULE OF CONTRIBUTIONS 100

OTHER POSTEMPLOYMENT BENEFIT PLAN

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET)
AND RELATED RATIOS 102

BUDGETARY COMPARISON SCHEDULE
GENERAL FUND 104
HOUSING AUTHORITY SPECIAL REVENUE FUND 105
OTHER GRANTS SPECIAL REVENUE FUND 106
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 107

SUPPLEMENTARY INFORMATION
GENERAL FUND:

DESCRIPTION OF GENERAL FUNDS 111
COMBINING BALANCE SHEET 112

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 114
OTHER GOVERNMENTAL FUNDS:

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 117
COMBINING BALANCE SHEET 120

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 124

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

GAS TAX SPECIAL REVENUE FUND 128
PROTECTIVE SERVICES SPECIAL REVENUE FUND 129

ATTACHMENT A

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

FINANCIAL SECTION (CONTINUED)

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL (CONTINUED):

SUPPLEMENTAL LAW ENFORCEMENT GRANT SPECIAL
REVENUE FUND 130

AIR QUALITY IMPROVEMENT PROGRAM SPECIAL REVENUE
FUND 131

FAMILIES AND COMMUNITIES TOGETHER (FACT) GRANT
SPECIAL REVENUE FUND 132
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND 133 SENIOR TRANSPORTATION SPECIAL REVENUE FUND 134
MEASURE M SPECIAL REVENUE FUND 135
PUBLIC SAFETY TASK FORCE (PSTF) SPECIAL REVENUE FUND 136 DEVELOPMENT IMPACT FEES SPECIAL REVENUE FUND 137
LIGHTING AND MEDIAN MAINTENANCE SPECIAL REVENUE FUND 138

ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA)
SPECIAL REVENUE FUND 139

STANTON CENTRAL PARK MAINTENANCE SPECIAL REVENUE
FUND 140
JAG GRANT SPECIAL REVENUE FUND 141

CERTIFIED ACCESS SPECIALIST PROGRAM (CASP) SPECIAL
REVENUE FUND 142
CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND 143
PARK IN LIEU FEES CAPITAL PROJECTS FUND 144
INTERNAL SERVICE FUNDS:

DESCRIPTION OF INTERNAL SERVICE FUNDS 146
COMBINING STATEMENT OF NET POSITION 147

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION 148
COMBINING STATEMENT OF CASH FLOWS 149
PRIVATE-PURPOSE TRUST FUNDS:

DESCRIPTION OF PRIVATE-PURCHASE TRUST FUNDS 152
COMBINING STATEMENT OF NET POSITION 153
COMBINING STATEMENT OF CHANGES IN NET POSITION 154

ATTACHMENT A

CITY OF STANTON, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024

STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION 157

FINANCIAL TRENDS
NET POSITION BY COMPONENT 158
CHANGES IN NET POSITION 160
FUND BALANCES OF GOVERNMENTAL FUNDS 164
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS 166
REVENUE CAPACITY:

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 168
DIRECT AND OVERLAPPING PROPERTY TAX RATES 170
PRINCIPAL PROPERTY TAXPAYERS 172
PROPERTY TAX LEVIES AND COLLECTIONS 173
DEBT CAPACITY:

RATIOS OF OUTSTANDING DEBT BY TYPE 174
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT 175
LEGAL DEBT MARTIN INFORMATION 176
PLEDGED-REVENUE COVERAGE 178
DEMOGRAPHIC AND ECONOMIC INFORMATION:

DEMOGRAPHIC AND ECONOMIC STATISTICS 180
PRINCIPAL EMPLOYERS 181
OPERATING INFORMATION:

FULL -TIME EQUIVALENT CITY EMPLOYEES BY FUNCTIONS 182
OPERATING INDICATORS BY FUNCTIONS 184
CAPITAL ASSET STATISTICS BY FUNCTION 190

ATTACHMENT A

INTRODUCTORY SECTION

ATTACHMENT A

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ATTACHMENT A

7800 Katella Avenue
Stanton, CA 90680
P | (714) 379-9222
F | (714) 890-1443
[email protected]
www. stantonca.gov
December 23, 2024
To the Honorable Mayor, Members of the City Council, and Citizens of Stanton:

It is a pleasure to present the Fiscal Year 2023-24 Annual Comprehensive Financial Report (ACFR) for the City of Stanton. These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards.

Responsibility for the accuracy of the data, the completeness and reliability of the presentation, including all disclosures, rests with City management.

To provide sufficient reliable information for the preparation of the City’s financial statements, City staff has established a comprehensive internal control framework designed to minimize the risk of error or misstatement and the risk of loss, theft, or misuse of City assets. Because the cost of internal controls should not exceed their benefits, the City’s internal controls have been designed to provide reasonable, rather than an absolute, assurance that the financial statements will be free from material misstatement.

The City’s financial statements have been audited by Gruber and Lopez, Inc., certified public accountants. The independent audit firm concluded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion (“clean opinion”) on the City’s financial statements for the fiscal year ended June 30, 2024. This means, in the auditors’ opinion, the City’s financial statements fairly present the City’s financial position in accordance with generally accepted accounting principles.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides narrative information, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of Stanton
Stanton is a general law City incorporated in 1956. It occupies a land area of 3.1 square miles and serves a population of approximately 39,084. The City is located in the northwestern portion of Orange County, approximately 23 miles southeast of the City of Los Angeles. It has easy freeway access and is within 12 miles of: Disneyland, Anaheim Stadium, Knotts Berry Farm, Huntington Beach and the John Wayne and Long Beach airports. State Highway 39, Beach Boulevard, runs through the center of the City.

ATTACHMENT A

ii
The City is governed under the Council-Manager form of government, with a five-member City Council.

The City Council is elected on a non-partisan basis with staggered four-year terms. Elections are held in November on even-numbered years. The Mayor is elected at-large, and the four City Council members are elected by voters in their districts. The Mayor Pro Tem position is selected annually by a majority vote of the City Council members. The City Council appoints the City Manager to carry out the policies and direction of the City Council, oversee the day-to-day operations of the City, and appoint the heads of the various City departments.

The City provides a range of municipal services that includes public works, planning, zoning, building, sewer services, parks and recreation, code enforcement, and parking control. Stanton is a “contract city”, and contracts with other governmental entities, private firms, and individuals to provide some of these services. Police services are provided by the Orange County Sheriff’s Department. Fire services are provided by the Orange County Fire Authority. Water services are provided by Golden State Water Company.

The City is financially accountable for the Stanton Housing Authority (Housing Authority). Therefore, the Housing Authority’s activities are included in these financial statements. Additional information on the Housing Authority can be found in Note 1 to the basic financial statements. The former Stanton Redevelopment Agency (Redevelopment Agency) was dissolved on February 1, 2012. Upon the dissolution of the Redevelopment Agency, its assets and liabilities were transferred to the Successor Agency to the Stanton Redevelopment Agency (Successor Agency). The City is obligated to report the resources and activities of the Successor Agency in a separate private purpose trust fund, which is also included in these financial statements. All uses of the resources of the Successor Agency must be approved by an independent Oversight Board comprised of members appointed by various taxing entities, and the California Department of Finance (“DOF”). Additional information for the Successor Agency can be found in Note 14 to the basic financial statements.

The City uses an annual budget, which the City Council adopts prior to the beginning of every fiscal year, to manage its finances. The budget is organized by fund (e.g., General Fund), department (e.g., public safety), and division (e.g., law enforcement services). The City Manager can authorize appropriation transfers in the operating and capital budget within the same fund without limitation. Any revisions between funds and revisions that change a fund’s total approved appropriations must be approved by the City Council. The Successor Agency does not adopt a budget because its expenses are restricted to enforceable obligations approved by the DOF. Payments associated with these enforceable obligations are approved annually by the DOF through the submission of a Recognized Obligation Payment Schedule (ROPS), unless DOF has approved a Last and Final ROPS. The DOF approved the Successor Agency’s most recent Amended Last and Final ROPS on December 17, 2020. Therefore, the Successor Agency’s annual expenses are limited to the amounts identified on the Amended Last and Final ROPS.

State law mandates that Stanton can only raise local tax rates with voter approval. Use and regulatory fees must also follow procedures set forth in State law and must not exceed the estimated reasonable cost of providing services. Fees require approval by the City Council; and fees in excess of reasonable cost require voter approval.

Local Economy
Over the last ten years, property values and personal income levels within the City have steadily increased in order to support the level of municipal services and facilities that are needed by the community. The

ATTACHMENT A

iii
assessed valuation of property in the City has grown 100.1% since fiscal year 2014-15 (ten years ago). The City’s assessed valuation has been consistently increasing at an average rate of 7.2% annually over the last ten years. In fiscal years 2023-24 and fiscal year 2024-25, the City’s assessed valuation increased 7.8% annually.

Stanton is home to approximately 3,000 businesses. Major industries include restaurants and general retail businesses. Stanton’s unemployment rate has traditionally been below State and national levels.

The three largest employers in the City are: Rowntree Gardens, ORCO Block Co. (ORCO), and Home Depot.

The City’s largest employer with 324 employees, Rowntree Gardens, is a non-profit senior living community that provides a full range of services to its members, such as: memory care, assisted living, independent living, skilled nursing, therapy services, and home care. ORCO, the City’s second largest employer with 180 employees, is a family-owned business operating for over 75 years that manufactures low embodied carbon concrete products, such as concrete masonry units, pavers, slabs, mortarless wall units. ORCO also sells high quality natural stone, porcelain, and fireplace kits. The Home Depot, the City’s third largest employer with 151 employees, is the world’s largest home improvement retailer with nearly 400,000 associates working in its more than 2,200 stores located through the United States of America and Mexico.

The City’s diverse sales tax base is comprised of a number of companies. The City’s Top 100 sales tax producers include various industries such as: gasoline service stations, restaurants, and general retail businesses. These top sales tax producers generate approximately 85.8% of the City’s total annual sales tax revenue. Additionally, in November 2014, the City’s voters approved a one-cent transaction and use tax (the Stanton 9-1-1 Public Safety and Essential City Services Protective Measure). The City’s Top 100 tax producers also generate approximately 68.5% of the City’s total annual transaction and use tax revenue.

The City’s tax base is well diversified, with total tax revenue representing 79.5% of the City’s total General Fund revenues. Property tax revenue (which includes property tax received in-lieu of motor vehicle fees) represents 35.6% of total tax revenues. Sales tax and transaction and use tax revenues represent 43.3% of total tax revenues. The remainder of the tax base (franchise taxes, transient occupancy taxes, utility user taxes, business license taxes, cannabis taxes) contributes another 21.1% of tax revenues to the General Fund. Total tax revenue increased 3.5% from fiscal year 2022-23, primarily due to increased property tax and cannabis tax revenues. Fiscal Year 2023-24 was the first year the City received cannabis tax revenue during the entire fiscal year.

Other Relevant Financial Information
The City Council initially established a General Fund reserve policy in 2011 and has updated the policy annually since that time. On June 13, 2023, the City Council adopted Resolution No. 2023-23 to approve the City’s reserve policy for Fiscal Year 2023-24. The risk-based policy sets aside the following funds in the City’s General Fund to ensure the City’s continued financial stability:
 Economic uncertainty – $6,400,000 (target level is 20% of the General Fund’s operating expenditures);
 Capital improvement – $5,000,000;

ATTACHMENT A

iv
 Emergency disaster contingency - $3,200,000 (target level is 10% of the General Fund’s operating expenditure);
 Emergency equipment and maintenance - $150,000; and,
 Technology equipment - $150,000.

With the exception of the economic uncertainty reserve (which is included in unassigned fund balance in accordance with governmental accounting standards), these reserves are reported in the General Fund’s committed fund balance in the accompanying financial statements.

City Resolution No. 2023-23 also established the following reserves in other City Funds:
 Capital Improvement reserve set aside in the Sewer Enterprise Fund - $1,000,000;

 Vehicle Replacement reserve set aside in the Fleet Maintenance Internal Service Fund - $100,000; and,
 Pension and Other Post Employment Benefits Stabilization reserve set aside in the Employee Benefits Internal Service Fund with a target level of 50% of the City’s unfunded actuarial liability.

As of June 30, 2024, the City held $4.7 million in an irrevocable trust account held by Public Agency Retirement Services. These funds are restricted for pension and other post-employment benefit (OPEB) expenses only and are included with unrestricted net position in the Employee Benefits Internal Service Fund (to offset pension and other post-employment liabilities reported at year end). The amount held in the trust was 52.4% of the City’s unfunded actuarial liability balance for its pension plans as of June 30, 2023, GASB 68 Accounting Report issued by the California Public Employees’ Retirement System (CalPERS). As of June 30, 2024, the City’s outstanding balance for its other post-employment benefits was a surplus of $62,484, as estimated by the City’s consultant, Total Compensation Systems, Inc. Therefore, there is no OPEB liability recorded as of June 30, 2024.

Summary of Current Year Accomplishments
Major projects completed during fiscal year 2023-24 include:
 Completed construction of Family Resource Center Improvements Project (Phases I) (funded by Community Development Block Grant funds and ARPA Grant Funds from the County of Orange);  Adopted the Town Center Specific Plan;
 Completed update of cannabis ordinance to allow cannabis delivery services;  Completed Parks Master Plan;
 Completed competitive bidding processes for contracted information technology support services and managed copier machine and printer services;

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v
 Implemented live streaming of City Council meetings; and,  Implemented the Safe Streets Together Campaign.

Future Work Plan Initiatives
City work plan goals for fiscal year 2024-25 include the following:
 Complete Family Resource Center Improvements Project (Phase II) (partially funded by ARPA grant funds from the County of Orange);
 Complete the update of the Sewer Master Plan;
 Complete Premier Park Renovation Project (partially funded by Statewide Park Development and Community Revitalization Program grant funds);
 Complete construction of the Fiscal Year 2022-23 Annual Street Rehabilitation Project;  Complete the Stanton Community Center Improvement Project funded by Community Development Block Grant-Coronavirus Aid, Relief, and Economic Security (CARES) (CDBG-CV3) grant from the County of Orange;
 Begin Stanton Central Park Tennis Court Renovation Project;  Continue work on the Citywide Street Sign Replacement Project;  Complete City Rebranding project, including updating the City’s website and developing a style guide;
 Complete the City-wide user fee study;
 Complete update of the City’s Business License Ordinance;  Complete Sewer Rate Study and Sewer Capacity Fee Study;  Replace audio and visual equipment in City Council Chambers;  Complete an in-depth review of the City’s records retention policy;  Complete procurement process and begin work on implementation of new permitting software;  Begin work on implementation of new Human Resources/Finance software;  Begin work on General Plan Update;
 Continue to assist cannabis businesses through permitting and construction process;

ATTACHMENT A

ATTACHMENT A

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Stanton
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
vii ATTACHMENT A

CITY OF STANTON
Organizational Structure
as of June 30, 2024
Stanton Residents

CITY COUNCIL
David J. Shawver, Mayor
Hong Alyce Van, Mayor Pro Tem
Gary Taylor, Council Member
Donald Torres, Council Member
Carol Warren, Council Member

CITY MANAGER
Hannah Shin-Heydorn
Administration
Information Technology
Personnel and Risk Management
City Clerk
Patricia A. Vazquez
Administration
Council Support
Elections
Records Management
Finance
Michelle Bannigan, CPA
Administration
Accounting / Payroll
Budget & Financial Planning
Business License
Debt Service
Treasury
Public Safety
James Wren
Administration
Ambulance Services
Animal Control
Code Enforcement
Emergency Preparedness
Homeless Services
Parking Control
Public Works
Cesar Rangel, P.E.

Administration
CIP Administration
Crossing Guards
Engineering
Fleet Maintenance
Graffiti Abatement
Parks Maintenance
Public Facilities Maintenance
Sewer Maintenance
Storm Drain Maintenance
Street Lighting
Street Maintenance
Community & Economic
Development
Crystal Landavazo
Administration
Building Regulation
CDBG/Housing
Economic Development
Planning
Community
Services
Zenia Bobadilla
Administration
Public Information
Facility Rentals
FaCT Program
Recreation Programs
Senior Services
Special Events
Stanton Family Resource
Center
Fire Services (OCFA)
Chief Steve Dohman
Administration
Fire Protection
Police Services (OCSD)
Captain Ryan Pierce
Administration
Crime Prevention
Investigations
Parking Enforcement
Patrol
Supervision
Traffic
City Attorney
HongDao Nguyen
Best Best & Krieger LLP
viii ATTACHMENT A

CITY OF STANTON, CALIFORNIA

LIST OF PRINCIPAL OFFICIALS
AS OF JUNE 30, 2024
ix
City Manager ....................................................................................................... Hannah Shin-Heydorn City Clerk................................................................................................................... Patricia A. Vazquez Community & Economic Development Director ......................................................... Crystal Landavazo Community Services Director .......................................................................................... Zenia Bobadilla Finance Director/City Treasurer .................................................................................. Michelle Bannigan Public Safety Services Director ........................................................................................ James J. Wren Public Works Director/City Engineer .................................................................................. Cesar Rangel City Attorney (Best, Best & Krieger LLP) ..................................................................... HongDao Nguyen Chief of Police Services (O.C. Sheriff Department) ........................................... Captain Charles Walters Orange County Fire Authority Division Chief ................................................................... Steve Dohman

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ATTACHMENT A

FINANCIAL SECTION

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ATTACHMENT A

1 The Honorable Mayor and
Members of the City Council
of the City of Stanton, California
Stanton, California
INDEPENDENT AUDITORS’ REPORT
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Stanton, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Stanton, California’s basic financial statements as listed in the table of contents.

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

Emphasis of Matter
As described in Note 1 to the basic financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 91 and 96. Our opinion is not modified with respect to this matter.

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 City of Stanton, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Stanton, California’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 A

The Honorable Mayor and
Members of the City Council
of the City of Stanton, California
2 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 City of Stanton, California’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Stanton, California’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 and safety pension plans, the schedule of changes in the net other postemployment benefit (OPEB) liability (asset) and related ratios, and the budgetary comparison schedules for the General Fund and Major Special Revenue Funds, 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Stanton’s basic financial statements. The introductory section, the combining and individual fund financial statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

ATTACHMENT A

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

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2024, on our consideration of the City of Stanton’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 City of Stanton’s internal control over financial reporting and compliance.

Gruber and Lopez, Inc.

Newport Beach, California
December 22, 2024

ATTACHMENT A

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ATTACHMENT A

5 MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Stanton (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. 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 City exceeded its liabilities and deferred inflows of resources on June 30, 2024, by $169.1 million. This amount is referred to as the net position of the City. Of this amount, $51.0 million is unrestricted net position and may be used to meet the City’s ongoing obligations to citizens and creditors.
• During fiscal year 2023-24, the City’s overall net position increased by $6.5 million primarily due to an increase in investment earnings and a full year of cannabis tax revenue.
• The City’s total long-term liabilities, which includes net pension liability, increased by $0.5 million, or 6.2% during the fiscal year ended June 30, 2024, to a total outstanding amount of $9.3 million, primarily due to an increase of $689,514 in the City’s net pension liability.
• As of June 30, 2024, the City’s governmental funds (the General Fund, Special Revenue, and Capital Projects funds) reported combined ending fund balances of $63.6 million. Governmental fund revenues and other financing sources exceeded expenditures, and other financing uses by $3.8 million during fiscal year 2023-24. Of the $63.7 million combined ending fund balances on June 30, 2024, $24.7 million is categorized as unassigned, $4.6 million is categorized as assigned, $10.1 million is categorized as committed, $22.3 million is categorized as restricted, and $1.9 million is categorized as non-spendable. More detailed information regarding these amounts can be found in Note 13 in the Notes to Basic Financial Statements. • The combined $29.8 million assigned and unassigned fund balance of the General Fund represented 71.5% of total General Fund revenues including transfers in.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to

ATTACHMENT A

6 the basic financial statements. This report also consists of supplementary information in addition to the basic financial statements.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. 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 City’s finances.

These two statements help to answer the question: “Is the City 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 City’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 City 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 occur, 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 taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community development, public works and culture and recreation. The business-type activities of the City include sewer activities.

Government-wide financial statements. The government-wide financial statements include not only the City itself (known as the primary government), but also the Stanton Housing Authority (“Housing Authority”), a legally separate entity. The Housing Authority functions for all practical purposes as an integral part of the City, and therefore is included in the accompanying financial statements as a part of the primary government as a blended component unit.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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7 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 governmentwide 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.

The City maintains various individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the: General Fund, Housing Authority Special Revenue Fund, Other Grants Special Revenue Fund, and the Capital Project Fund, all of which are considered major funds.

Data from other governmental funds are combined into a single, aggregate presentation.

Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its governmental and proprietary funds. Annual appropriations are approved prior to the beginning of the year. A budgetary comparison schedule has been provided for each of the governmental funds for which a budget was adopted to demonstrate compliance with this budget. The definition of the General Fund for purposes of these audited financial statements is different than for budgetary purposes. For budgeting purposes, the following funds are budgeted separately from the City’s General Fund: Transaction and Use Tax Fund, PCTA Administration Fund, Public Benefit Fees Fund, Beautification Fees, Fund, Neighborhood Preservation Fees Fund, Cannabis Community Benefit Fees Fund, and the Developer Deposits. However, these funds have been combined into the General Fund for these financial statements.

Individual fund data for these funds is provided in the form of combining statements in the supplementary information section of this report.

Proprietary funds. The City maintains two different types of proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City

ATTACHMENT A

8 uses internal service funds to account for its workers’ compensation insurance activities, liability/risk management activities, employee benefits activities, and fleet maintenance activities.

Proprietary funds provide the same type of informational data as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer operations, which is considered to be a major fund of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section of this report.

Fiduciary funds. Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the governmentwide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City utilizes two private-purpose trust funds to account for the assets, liabilities, and activities of the Successor Agency to the dissolved Stanton Redevelopment Agency and the North Orange County Public Safety Collaborative.

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 City’s budgetary policies and supplementary information on the City’s defined benefit plans.

The combining statements referred to earlier in connection with General Funds, other governmental funds and internal service funds are presented immediately following the required supplementary information as supplementary information. The City’s supplementary information section also presents budgetary schedules for individual governmental funds and combining statements for the fiduciary funds.

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 City, assets and deferred outflows exceeded liabilities and deferred inflows by $169.1 million as of June 30, 2024. In comparison, net position was $162.7 million as of June 30, 2023.

The largest portion of the City’s net position on June 30, 2024, ($95.6 million or 56.5% of total net position), reflects its investment in capital assets (e.g., land, infrastructure, buildings, improvements, and equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

ATTACHMENT A

9 Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional $22.5 million of the City’s net position is restricted net position, representing resources that are subject to external restrictions or enabling legislation on how they may be used. The breakdown of restricted net positions by functions is as follows: 1) low- and moderate-income housing projects ($10.4 million); 2) public safety for restricted grants and fees ($0.7 million); 3) community development for restricted grants and fees ($0.3 million; 4) public works for restricted grants and fees ($7.0 million); and 5) culture and recreation for restricted grants and fees ($4.2 million).

The remaining $51.0 million is unrestricted net position, which may be used to meet the government’s ongoing obligations to citizens and creditors. Unrestricted net position increased $4.4 million, or 9.5%, from June 30, 2023.

A summary of the government-wide Statement of Net Position follows:

At the end of the current fiscal year, the City’s overall net position increased by $6.5 million. The fiscal year 2023-24 governmental activities resulted in an increase in net position of $5.7 million. The fiscal year 2023-24 business type activities resulted in an increase in net position of $840,010. Additional information has been provided below for a more detailed discussion of the City’s governmental activities and business-type activities.
2024 2023 2024 2023 2024 2023 %
Current and other assets $ 76,279,379 $ 69,644,017 $ 7,679,729 $ 6,635,592 $ 83,959,108 $ 76,279,609 10.1% Capital assets, net 91,059,872 89,705,314 4,540,186 4,683,660 95,600,058 94,388,974 1.3% Total assets 167,339,251 159,349,331 12,219,915 11,319,252 179,559,166 170,668,583 5.2% Deferred outflows of resources 4,775,843 5,727,490 - - 4,775,843 5,727,490 -16.6% Long-term liabilities 9,426,917 8,796,514 3,773 1,972 9,430,690 8,798,486 7.2% Other liabilities 4,175,409 3,044,249 75,692 16,840 4,251,101 3,061,089 38.9% Total liabilities 13,602,326 11,840,763 79,465 18,812 13,681,791 11,859,575 15.4% Deferred inflows of resources 1,526,224 1,883,157 - - 1,526,224 1,883,157 -19.0% Net position:
91,059,872 89,705,314 4,540,186 4,683,660 95,600,058 94,388,974 1.3% Restricted 22,498,313 21,682,348 - - 22,498,313 21,682,348 3.8% Unrestricted 43,428,359 39,965,239 7,600,264 6,616,780 51,028,623 46,582,019 9.5% Total net position $ 156,986,544 $ 151,352,901 $ 12,140,450 $ 11,300,440 $ 169,126,994 $ 162,653,341 4.0% Net investment in capital assets

CITY OF STANTON
Governmental
Activities
Business-type
Activities Totals

NET POSITION AT YEAR END

ATTACHMENT A

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

Governmental activities
During the current fiscal year, the City’s net position for governmental activities increased by $6.5 million from the prior fiscal year. The following table summarizes and presents governmental activities revenue by source and percentages for the fiscal year ended June 30, 2024, along with the percentage changes from the prior year:
2024 2023 2024 2023 2024 2023 % Change
Revenues:

Program Revenues:

Charges for services $ 7,023,154 $ 6,656,797 $ 1,191,757 $ 1,089,667 $ 8,214,911 $ 7,746,464 6.0% Operating grants and contributions 6,482,509 12,919,661 - - 6,482,509 12,919,661 -49.8% Capital grants and contributions 1,668,675 879,739 - - 1,668,675 879,739 89.7% General revenues:

Taxes:

Property taxes 9,526,865 8,964,390 227,069 194,785 9,753,934 9,159,175 6.5% Sales taxes 5,616,291 5,321,610 - - 5,616,291 5,321,610 5.5% Transaction and use taxes 6,295,790 6,958,521 - - 6,295,790 6,958,521 -9.5% Transient occupancy taxes 617,090 671,096 - - 617,090 671,096 -8.0% Franchise taxes 1,305,537 1,251,495 - - 1,305,537 1,251,495 4.3% Utility user taxes 2,479,282 2,504,823 - - 2,479,282 2,504,823 -1.0% Cannabis taxes 1,131,502 15,586 - - 1,131,502 15,586 7159.7% Other taxes 48,277 40,258 - - 48,277 40,258 19.9%
Investment earnings, unrestricted 2,277,972 878,675 327,691 116,944 2,605,663 995,619 161.7% Gain on sale of capital assets - - - - - - 0.0%
Miscellaneous 87,569 93,478 2,588 - 90,157 93,478 -3.6% Total revenues 44,560,513 47,156,129 1,749,105 1,401,396 46,309,618 48,557,525 -4.6% Expenses:

General government 4,888,922 4,558,241 - - 4,888,922 4,558,241 7.3% Public safety 22,334,226 21,009,218 - - 22,334,226 21,009,218 6.3% Community development 3,308,043 5,882,403 - - 3,308,043 5,882,403 -43.8% Public works 6,101,529 6,552,867 - - 6,101,529 6,552,867 -6.9% Culture and recreation 2,584,395 2,558,081 - - 2,584,395 2,558,081 1.0% Interest on long-term debt 10,938 11,020 - - 10,938 11,020 -0.7% Sewer enterprise - - 607,912 516,366 607,912 516,366 17.7% Total expenses 39,228,053 40,571,830 607,912 516,366 39,835,965 41,088,196 -3.0% Increase (decrease) in net
position before transfers 5,332,460 6,584,299 1,141,193 885,030 6,473,653 7,469,329 -13.3% Transfers 301,183 332,010 (301,183) (332,010) - - 0.0%
Change in Net Position 5,633,643 6,916,309 840,010 553,020 6,473,653 7,469,329 -13.3% Net position, beginning of year 151,352,901 144,436,592 11,300,440 10,747,420 162,653,341 155,184,012 4.8% Net position, end of year $ 156,986,544 $ 151,352,901 $ 12,140,450 $ 11,300,440 $ 169,126,994 $ 162,653,341 4.0%

CITY OF STANTON

CHANGE IN NET POSITION
Activities
Governmental Business-type
Activities Totals

ATTACHMENT A

11 Revenues decreased by $2.6 million, or 5.5%, from the prior year.

Charges for services increased by $366,357, or 5.5%, in fiscal year 2023-24, primarily due to forfeited construction and demolition deposits and revenue from the City’s biannual residential parking permit program and increased parking citation revenue.

Operating grants and contributions revenue decreased by $6.4 million, or 49.8%,during the current fiscal year, primarily due to the spending of $7.7 million of one-time grant funds received under the American Rescue Plan Act program in fiscal year 2022-23.

Capital grants and contributions revenue increased by $788,936, or 89.7%. During fiscal year 2023-24, the City Council provided a loan for $632,350 to Bonanni Development Company III, LLC (“Bonanni”) for the repayment of public benefit fees for the VRV project.

Refer to Note 6 in the Notes to Basic Financial Statements for additional information.

Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2023-24 of Total 2022-23 (Decrease)
Charges for services $ 7,023,154 15.8% 366,357 $ 5.5%
Operating grants and contributions 6,482,509 14.5% (6,437,152) -49.8% Capital grants and contributions 1,668,675 3.7% 788,936 89.7% Sales, transaction, and use taxes 11,912,081 26.7% (368,050) -3.0% Property taxes 9,526,865 21.5% 562,475 6.3%
Other taxes 5,581,688 12.5% 1,098,430 24.5%
Other 2,365,541 5.3% 1,393,388 143.3%
TOTAL REVENUES $ 44,560,513 100.0% (2,595,616) $ -5.5%

GOVERNMENTAL ACTIVITIES
Revenues by Source
Charges for services

15.8%
Operating grants and
contributions

14.5%
Capital grants and
contributions

3.7%
Sales, transaction,
and use taxes

26.7%
Property taxes

21.5%
Other taxes

12.5%
Other

5.3%

GOVERNMENTAL ACTIVITIES
Revenues by Source
Fiscal Year 2023-24

ATTACHMENT A

12 Sales, transaction, and use taxes decreased $368,050, or 3%. In June 2023. The City received a one-time transaction and use tax payment of $998,127 for a transaction between two businesses. After adjusting for this anomaly, the actual change in sales, transaction and use taxes was an increase of $630,077, or 5.5% from fiscal year 2022- 23, which is consistent with the increase in retail sales activity during the fiscal year. Fiscal year 2023-24 represents the first fiscal year of cannabis retail sales activity in the City.

Property taxes increased $562,475, or 6.3%, which is consistent with the increase in the City’s assessed valuation for the current fiscal year.

Other taxes increased by $1.1 million, or 24.5%, primarily due to the first fiscal year the City received cannabis tax revenue. As of July 2023, two of the City’s four cannabis retail businesses were open and generating retail sales. The other two retail businesses were operating by December 2023.

Other revenue increased by $1.4 million, or 143.3%, primarily due to increased unrestricted investment earnings realized during fiscal year 2023-24. The average yield on the City’s investment portfolio was 4.2% during fiscal year 2023-24 compared to an average yield of 3.0% in fiscal year 2022-23.

The cost of all governmental activities during fiscal year 2023-24 was $39.2 million, a decrease of $1.3 million, or 3.3%, from the previous fiscal year. The following table summarizes and presents governmental activities expenses by function and percentages for the fiscal year ended June 30, 2024, along with the percentage changes from the prior year.

Increase
(Decrease) Percent
Fiscal Year Percent From Increase
FUNCTION 2023-24 of Total 2022-23 (Decrease)
General government $ 4,888,922 12.5% 330,681 $ 7.3%
Public safety 22,334,226 56.9% 1,325,008 6.3%
Community development 3,308,043 8.4% (2,574,360) -43.8% Public works 6,101,529 15.6% (451,338) -6.9%
Culture and recreation 2,584,395 6.5% 26,314 1.0%
Interest on long-term debt 10,938 0.0% (82) -0.7%
TOTAL EXPENSES $ 39,228,053 99.9% (1,343,777) $ -3.3%
Expenses by Function

GOVERNMENTAL ACTIVITIES

ATTACHMENT A

13 General government expenses increased by $0.3 million, or 7.3%, primarily due to the increase in the cost for various contracted information technology services and legal costs associated with the Tina Pacific affordable housing project.

Public safety expenses increased by $1.3 million, or 6.3%, due to increased contracted costs for law enforcement and fire protection costs. In addition, the City provided The Hope Center of Orange County with $613,809 additional grant funding for the Edward Byrne Memorial Justice Assistance Grant program during fiscal year 2023-24 compared to the previous year. .

Community development expenses decreased by $2.6 million, or 43.8%, primarily due to a $2.5 million affordable housing grant provided to JHC-Beach3LLC (“JHC”) and the demolition of the building located at 8861 Pacific Avenue in fiscal year 2022-23. The $3.3 million for fiscal year 2023-24 is consistent with fiscal year 2021-22 community development expenses.

Public works expenses decreased by $0.5 million, or 6.9% primarily due to the City’s purchase of a skip loader in fiscal year 2022-23. Also, during the 2022-23 fiscal year, the City contributed to the City match to the Orange County Transportation Authority for the Magnolia Street Traffic Signal Synchronization Project. In addition, the City’s contractual engineering services for fiscal year 2022-23 included several site plans for projects set for construction in fiscal year 2023-24.

Culture and recreation expenses increased by $26,314, or 1.0% due to additional special events funded during fiscal year 2023-24 such as: State of the City; Citizens Academy; and the Paint the Town with Love event.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure compliance with finance-related legal requirements.

General
government

12.5%
Public safety

57.0% Community
development

8.4%
Public works

15.6%
Culture and
recreation

6.5%

GOVERNMENTAL ACTIVITIES
Expenses by Function
Fiscal Year 2023-24

ATTACHMENT A

14 Governmental funds:

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary spending as this category of fund balance represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council.

As of June 30, 2024, the City’s governmental funds (as presented in the balance sheet on page 28) reported combined fund balances of $63.6 million, an increase of $3.8 million from the prior year balance of $59.8 million. Approximately, $24.7 million (38.8%) consists of unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed or assigned to indicate that it is: 1) not in spendable form ($1.9 million), 2) legally required to be spent on specific uses or maintained intact through a federal, state, or local law or contractual obligation ($22.3 million), 3) committed for a specific purpose by City Council resolution ($10.1 million), or 4) assigned for a particular purpose ($4.6 million). Refer to Note 13 in the Notes to Basic Financial Statements for more detailed information regarding nonspendable, restricted, committed, assigned, and unassigned fund balances.

General Fund. The General Fund is the City’s chief operating fund. As of June 30, 2024, the total fund balance of the General Fund was $41.7 million, an increase of $3.2 million, or 8.2%, from the previous fiscal year. During fiscal year 2023-24, revenues increased approximately $2.2 million, or 6.9%, from the previous fiscal year, due to increased property, use tax, and cannabis revenues. General Fund expenditures were $9.2 million, or 42.1%, higher in fiscal year 2023-24 than the previous fiscal year, primarily due to the funding of contracted public safety costs previously funded by the American Rescue Plan Act (ARPA) Special Revenue Fund.

The table below summarizes the various components of the General Fund’s fund balance.

The City’s nonspendable fund balance includes prepaid items, advances to other funds, and the noncurrent portion of outstanding notes and loans receivable. Nonspendable fund balance decreased by $522,650, or 23.1%, from the previous fiscal year due to repayment collected on the loan made to the Lighting and Median Maintenance Special Revenue Fund.
2024 2023 $ Change % Change
Nonspendable $ 1,742,586 $ 2,265,236 $ (522,650) -23.1% Committed 10,124,754 10,105,796 18,958 0.2%
Assigned 4,642,971 6,304,522 (1,661,551) -26.4%
Unassigned - contingency reserve 25,167,157 19,848,555 5,318,602 26.8% Total $ 41,677,468 $ 38,524,109 $ 3,153,359 8.2%

ATTACHMENT A

15 The City’s committed fund balance includes reserves for: emergency equipment and maintenance ($150,000); technology equipment ($150,000); emergency disaster contingency ($3.2 million); and capital improvement ($5.0 million). In addition, $1.0 million was committed by the City Council for certain developer contributions through resolutions for beautification, neighborhood preservation, and public benefit projects. During fiscal year 2023-24, committed fund balance increased by $500,000, or 3.5%, due to an additional $200,000 committed for the emergency disaster contingency reserve and $300,000 committed to the economic uncertainty reserve during the current fiscal year.

Assigned fund balance of $4.6 million as of June 30, 2024, represents an decrease of $1.7 million, or 26.4%, from the prior fiscal year, primarily due to a number of capital improvement projects completed and funding for temporary staff. Refer to Note 13 for additional information regarding assigned fund balance.

The City’s unassigned fund balance increased from $19.8 million as of June 30, 2023, to $25.2 million as of June 30, 2024, an increase of $5.3 million, or 26.8%. This amount includes a $6.4 million reserve for economic uncertainty.

As a measure of the General Fund’s relative fiscal health, it is useful to calculate the General Fund reserve balance as a percentage of total General Fund operating expenditures. For the purposes of this calculation the discretionary fund balance is comprised of the following balances: committed reserves of $150,000 for emergency equipment and maintenance; $150,000 for technology equipment; $3.2 million for emergency disaster contingency; $5.0 million for capital improvements; and $6.4 million for economic uncertainty fund balance. This amount represents 95.9% of fiscal year 2024- 25 budgeted General Fund operating expenditures.

The City has three other major funds: the Housing Authority Special Revenue Fund; Other Grants Special Revenue Fund, and the Capital Project Fund.

Housing Authority Special Revenue Fund. As of June 30, 2024, the Housing Authority Special Revenue Fund reported a restricted fund balance of $10.4 million, which represents a decrease of $502,008, or 4.6%, from the prior fiscal year. The reduction is primarily due to increases in legal and other operating expenditures associated with the Housing Authority’s Tina/Pacific housing project and the increased contribution to the North Orange County Service Planning Area to fund operating costs for their navigation centers.

Other Grants Special Revenue. As of June 30, 2024, the Other Grants Special Revenue Fund reported a deficit fund balance of $434,728 which represents a reduction of $311,983, or 254.2%, from the prior fiscal year. The majority of the deficit fund balance represents outstanding reimbursement from the State of California for the City’s Norm Ross Sports Park project.

Capital Project Revenue. As of June 30, 2024, the Capital Projects Fund reported a fund balance of $103,809 which represents a reduction of $78,142, or 42.9%, from the prior

ATTACHMENT A

16 fiscal year. During fiscal year 2023-24, the Capital Projects Fund funded the new shade structure located at Stanton Central Park and part of the installation costs for the adult fitness equipment located at Stanton Park.

Proprietary Funds:

The proprietary funds provide the same type of information found in the government-wide financial statements, but in greater detail. The City operates one business-type activity for sewer operations.

Sewer Enterprise Fund. The Sewer Enterprise Fund’s unrestricted net position at the end of fiscal year 2023-24 was $7.6 million as June 30, 2024, an increase of $983,484, or 14.9%, from the previous year. The Sewer Enterprise Fund’s total revenues increased by $347,709, or 24.8% from the prior fiscal year due to increased sewer connection fees collected on behalf of the Orange County Sanitation District (OC San) as a result of increased development activity within the City. In addition, the City experienced an increase in unrestricted investment earnings realized during fiscal year 2023-24. The Sewer Enterprise Fund’s total expenses increased by $91,546, or 17.7% during fiscal year 2023-24, when compared to the previous year. The majority of the increase represent the pass-through of sewer connection fees paid to OC San.

Internal Service Funds. As of June 30, 2024, the Internal Service Funds reported total unrestricted net position of $448,810, a reduction of $491,866 or 52.3%, from the previous year. The City’s net pension liability increased $689,514 to $9.0 million during fiscal year 2023-24 based on the plan information provided by California Public Employees’ Retirement System (CalPERS) based on an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023.

GENERAL FUND BUDGETARY HIGHLIGHTS
In preparing the budget, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of revenues to allow for the expansion of existing programs, if required.

For the year ended June 30, 2024, the General Fund reported a net increase in fund balance of $3.2 million. Actual revenues exceeded final budgeted amounts by $1.0 million, or 3.2%. The two revenue categories where actual Fiscal year 2023-24 revenues exceeded the budget most significantly were taxes and assessments (increased by $1.0 million) and investment income (increased by $1.0 million). Taxes and assessments revenue were $1.0 million higher than the budget due to conservative estimates for cannabis, sales, and transaction and use tax revenues. The negative variance between actual miscellaneous revenue with the final budget of $667,180 represents the repayment of the interfund loan the General Fund received from Lighting and Median Maintenance Special Revenue Fund. The variance represents a difference between the budgetary

ATTACHMENT A

17 reporting and financial reporting for the repayment of this loan. The City’s investment income benefitted from increased interest rates by the federal government, which increased the interest rates the City earned on many securities in its investment portfolio, resulting in higher investment income. Expenditures were less than the final budgeted amounts by $1.6 million, or 5.1%; however, approximately $208,695 was re-appropriated to the fiscal year 2024-25 budget for projects that were started, but not completed during fiscal year 2023-24. The remainder of the budget savings were attributed to salary savings from underfilled and vacant positions; contracted law enforcement contract costs (due to vacancy credits); and savings from contracted building inspection services.

CAPITAL ASSET AND LONG-TERM LIABILITIES
Capital Assets
Total capital assets increased by $1,3 million, or 1.4% from the prior fiscal year. Capital assets for business-type activities decreased by $143,474 or 3.0%, from the previous fiscal year, due to the current year’s depreciation expense. Capital assets for governmental activities increased by $1.4 million , or 1.6%, from the previous fiscal year, primarily due to an increase in construction in progress caused by a number of capital projects in progress as of the end of fiscal year 2023-24.

Additional information on the City’s capital assets can be found in Note 4 in the Notes to the Basic Financial Statements.

Long-Term Liabilities
2024 2023 2024 2023 2024 2023 Change
Land $ 38,406,365 $ 38,406,365 $ - $ - $ 38,406,365 $ 38,406,365 0.0% Construction in progress 2,639,730 1,093,824 - - 2,639,730 1,093,824 58.6% Buildings and improvements 32,882,859 33,219,618 - - 32,882,859 33,219,618 -1.0% Furniture and Equipment 494,499 175,647 - - 494,499 175,647 181.5% Vehicles 213,721 187,957 - - 213,721 187,957 13.7%
Sanitary plant - - 4,121,087 4,251,464 4,121,087 4,251,464 -3.1% General plant - - 419,099 432,196 419,099 432,196 -3.0% Right-to-use lease asset 80,966 - - - 80,966 - 100.0%
Infrastructure 16,428,082 16,621,903 - - 16,428,082 16,621,903 -1.2% Totals $ 91,146,222 $ 89,705,314 $ 4,540,186 $ 4,683,660 $ 95,686,408 $ 94,388,974 1.4%

CAPITAL ASSETS
(Net of Depreciation)
Business-type
Activities
Governmental
Activities Totals
2024 2023 2024 2023 2024 2023
%
Change
Net pension liability $ 9,022,918 $ 8,333,404 $ - $ - $ 9,022,918 $ 8,333,404 8.3% Other post-employment benefits - 153,787 - - - 153,787 -100.0% Compensated absences 317,649 309,323 3,773 1,972 321,422 311,295 3.3% Claims payable - - - - - - 0.0%
Totals $ 9,340,567 $ 8,796,514 $ 3,773 $ 1,972 $ 9,344,340 $ 8,798,486 6.2%

LONG-TERM LIABILITIES
Governmental
Activities
Business-type
Activities Totals

ATTACHMENT A

18 As of June 30, 2024, the City had total long-term liabilities outstanding of $9.3 million.

During fiscal year 2023-24, total long-term liabilities increased by $545,854, or 6.2%, primarily due to the increase of the City’s net pension liability of $689,514. Additional information on the City’s long-term liabilities can be found in Notes 7, 11 and 12 in the Notes to the Basic Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Local governments throughout the State of California are challenged with funding increasing costs of operations with constrained resources. The City maintains a conservative approach to budgeting revenues and expenditures. Management takes an active role in monitoring the application of the budget during the fiscal year to apply any necessary changes to projected revenues as well as appropriated expenditures. The budget for fiscal year 2024-25 was projected with a modest revenue reduction of 3.0% and expenditure growth of 3.5%. The increase in expenditures includes $2.6 million in expenditures from assigned fund balance designated for special projects. The General Fund budget was balanced with revenues and funding from the assigned fund balance exceeding appropriations by $596,325.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to: Michelle Bannigan, Finance Director, 7800 Katella Avenue, Stanton, California 90680.

ATTACHMENT A

19 BASIC FINANCIAL STATEMENTS

ATTACHMENT A

20 This page intentionally left blank

ATTACHMENT A

21 GOVERNMENT-WIDE FINANCIAL STATEMENTS

ATTACHMENT A

22 This page intentionally left blank

ATTACHMENT A

Governmental Business-Type
Activities Activity Total

ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES
Cash and investments (Note 3) 62,998,886 $ 7,619,662 $ 70,618,548 $ Restricted cash and investments
held in pension trust (Note 3) 4,729,380 - 4,729,380
Receivables 3,999,384 60,067 4,059,451
Due from other governments 1,521,872 - 1,521,872
Prepaid items 204,027 - 204,027
Notes and loans receivable (Note 6) 2,676,996 - 2,676,996 Net OPEB Asset (Note 12) 62,484 - 62,484
Capital assets: (Note 4)
Non-depreciable 41,046,095 - 41,046,095
Depreciable, net 50,100,127 4,540,186 54,640,313
Total assets 12,219,915 167,339,251 179,559,166
Deferred pension related items (Note 11) 4,360,075 - 4,360,075 Deferred OPEB related items (Note 12) 415,768 - 415,768 Total deferred outflows of resources - 4,775,843 4,775,843

LIABILITIES AND DEFERRED

INFLOWS OF RESOURCES
Accounts payable 2,899,726 75,692 2,975,418
Accrued liabilities 852,189 - 852,189
Deposits payable 16,900 - 16,900
Unearned revenue 406,594 - 406,594
Long-term liabilities:

Due within one year (Note 7) 244,324 3,773 248,097
Due within more than one year (Note 7) 159,675 - 159,675 Net pension liability (Note 11) 9,022,918 - 9,022,918
Total liabilities 79,465 13,602,326 13,681,791
Deferred Pension related items (Note 11) 1,181,124 - 1,181,124 Deferred OPEB related items (Note 12) 345,100 - 345,100 Total deferred inflows of resources - 1,526,224 1,526,224

NET POSITION
Net investment in capital assets 91,059,872 4,540,186 95,600,058 Restricted for:

Low and moderate income housing 10,354,492 10,354,492 - Public safety 654,918 - 654,918
Community development 257,057 - 257,057
Public works 7,042,901 7,042,901 -
Culture and recreation 4,188,945 4,188,945 -
Unrestricted 7,600,264 43,428,359 51,028,623
Total net position $ 12,140,450 156,986,544 $ 169,126,994 $

CITY OF STANTON
Statement of Net Position
June 30, 2024
Primary Government
See accompanying notes to the basic financial statements. 23 ATTACHMENT A

Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Governmental activities:

General government 4,888,922 $ 516,451 $ - $ -$
Public safety 22,334,226 929,868 2,129,709 94,056
Community development 3,308,043 2,431,232 494,474 1,026,240 Public works 6,101,529 2,946,125 3,330,918 490,089
Culture and recreation 2,584,395 199,478 527,408 58,290 Interest and fiscal charges - 10,938 - -
Total governmental activities 39,228,053 7,023,154 6,482,509 1,668,675 Business-type activities:

Sewer enterprise 607,912 1,191,757 - -
Total 39,835,965 $ 8,214,911 $ 6,482,509 $ 1,668,675 $

CITY OF STANTON
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
Functions/Programs
See accompanying notes to the basic financial statements. 24 ATTACHMENT A

Governmental Business-type
Activities Activity Total
Governmental activities:

General government (4,372,471) $ - $ (4,372,471) $
Public safety (19,180,593) - (19,180,593)
Community development 643,903 - 643,903
Public works 665,603 - 665,603
Culture and recreation (1,799,219) - (1,799,219)
Interest and fiscal charges (10,938) - (10,938)
Total governmental activities (24,053,715) - (24,053,715) Business-type activities:

Sewer enterprise - 583,845 583,845
Total (24,053,715) 583,845 (23,469,870)
General revenues:

Taxes:

Property taxes 9,526,865 227,069 9,753,934
Sales taxes 5,616,291 - 5,616,291
Transactions and use taxes 6,295,790 - 6,295,790
Transient occupancy taxes 617,090 - 617,090
Franchise taxes 1,305,537 - 1,305,537
Utility user taxes 2,479,282 - 2,479,282
Cannabis taxes 1,131,502 - 1,131,502
Other taxes 48,277 - 48,277
Investment income, unrestricted 2,277,972 327,691 2,605,663 Gain on gain of sale of capital assets 9,495 - 9,495
Miscellaneous 78,074 2,588 80,662
Transfers 301,183 (301,183) -
Total general revenues and transfers 29,687,358 256,165 29,943,523 Change in net position 5,633,643 840,010 6,473,653
Net position - beginning of year,
as restated (Note 16) 151,352,901 11,300,440 162,653,341 Net position - end of year $ 12,140,450 156,986,544 $ 169,126,994 $ Functions/Programs

CITY OF STANTON
Statement of Activities (Continued)
For the Year Ended June 30, 2024
Changes in Net Position
Net (Expenses) Revenue and
See accompanying notes to the basic financial statements. 25 ATTACHMENT A

26 This page intentionally left blank

ATTACHMENT A

27 GOVERNMENTAL FUNDS

ATTACHMENT A

Capital
Project
Fund
Nonmajor Total
Housing Other Capital Governmental Governmental
General Authority Grants Projects Funds Funds
Cash and investments $ 39,077,359 $ 9,425,998 $ 852,420 - $ $ 11,814,803 $ 61,170,580 Receivables:

Accounts 522,442 5,310 - - 2,441 530,193
Interest 422,240 105,369 1,066 - 73,383 602,058
Taxes 2,832,738 - - - 12,335 2,845,073
Prepaid costs 43,590 - - 130,388 173,978 -
Due from other funds (Note 5) 371,310 - - - 371,310 -
Due from other governments 202,497 - 572,286 - 709,464 1,484,247 Notes and loans receivable 1,698,996 978,000 - - - 2,676,996 Total assets $ 45,171,172 10,514,677 $ 573,352 $ 982,808 $ 12,612,426 $ 69,854,435 $ Liabilities:

Accounts payable 1,552,042 $ 146,241 $ 5,726 $ 878,999 $ 279,724 $ 2,862,732 $ Accrued liabilities 852,123 - - - 852,189 66
Deposits payable 4,000 12,900 - - - 16,900
Due to other funds (Note 5) - - 361,324 - 9,986 371,310 Unearned revenues 20,419 1,044 206,301 - 178,830 406,594 Total liabilities 2,428,584 160,185 573,351 878,999 468,606 4,509,725 Deferred Inflows of Resources:

Unavailable revenue 1,065,120 - 434,729 - 192,449 1,692,298 Total deferred inflows
of resources 1,065,120 - 434,729 - 192,449 1,692,298
Fund Balances: (Note 13)
Nonspendable 1,742,586 - - 130,388 - 1,872,974
Restricted - 10,354,492 - - 11,960,581 22,315,073
Committed 10,124,754 - - - 10,124,754 -
Assigned 4,642,971 - - - 4,642,971 -
Unassigned 25,167,157 - (434,728) (26,579) (9,210) 24,696,640 Total fund balances 41,677,468 10,354,492 (434,728) 103,809 11,951,371 63,652,412 Total liabilities, deferred
inflows of resources
and fund balances $ 45,171,172 10,514,677 $ 573,352 $ 982,808 $ 12,612,426 $ 69,854,435 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES, AND

FUND BALANCES
ASSETS

CITY OF STANTON
Governmental Funds
June 30, 2024
Balance Sheet
Special Revenue Funds
See accompanying notes to the basic financial statements. 28 ATTACHMENT A

Total Fund Balances - Total Governmental Funds $ 63,652,412 Nondepreciable 41,046,095
Depreciable, net of Internal Service Fund of $224,293 49,875,835 Total capital assets 90,921,930
Lease payable (86,351)
Deferred Outflows of Resources - OPEB Related 415,768
Deferred Inflows of Resources - OPEB Related (345,100)
Net OPEB Asset 62,484
673,103
1,692,298
Net position of governmental activities $ 156,986,544

CITY OF STANTON
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Certain revenues in the governmental funds are deferred inflows of resources because they are not collected within the prescribed time period after year-end. However, these revenues are included in the government-wide statements.

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

The net OPEB liability applicable to the City'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 OPEB are only reported in the Statement of Net Position as the changes in these amounts effects only the government-wide statements for governmental activities.

Internal service funds are used by management to charge the costs of activities involved in rendering services to departments within the City. The assets and liabilities of the internal service funds are included in the statement of net position.

Long-term liabilites are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reportedin the Statement of Net Position:

See accompanying notes to the basic financial statements. 29 ATTACHMENT A

Capital
Project
Fund
Nonmajor Total
Housing Other Capital Governmental Governmental
General Authority Gants Projects Funds Funds
REVENUES:

Taxes and assessments 27,033,255 $ - $ -$ -$ $ 868,626 $ 27,901,881 Licenses and permits 959,428 - - - - 959,428
Intergovernmental 399,522 - 261,735 5,610,792 - 6,272,049 Charges for services 2,549,161 - - - 1,074,380 3,623,541 Fines and forfeitures 489,223 - - - - 489,223
Investment income 1,718,673 511,471 5,840 - 565,308 2,801,292 Rental income 141,825 623,076 - - - 764,901
Miscellaneous 60,523 - - - 90,207 150,730
Total revenues 33,351,610 1,134,547 267,575 - 8,209,313 42,963,045 EXPENDITURES:

Current:

General government 3,962,247 397,881 - - 17,027 4,377,155 Public safety 20,163,920 161,823 - - 1,721,497 22,047,240 Community development 1,750,111 1,076,851 - - 2,826,962 - Public works 2,818,335 17,171 - - 869,356 3,704,862
Culture and recreation 1,518,090 - - - 450,731 1,968,821 Capital outlay 111,134 - - 4,160,874 298,652 4,570,660
Debt service:

Principal retirement 5,511 - - - 5,511
Interest and fiscal charges 4,593 - - - 6,344 10,937
Total expenditures 30,333,941 1,636,555 17,171 4,160,874 3,363,607 39,512,148

REVENUES OVER (UNDER)
EXPENDITURES 3,017,669 (502,008) 250,404 (4,160,874) 4,845,706 3,450,897

OTHER FINANCING
SOURCES (USES):

Proceeds from lease 91,860 - - - - 91,860
Transfers in (Note 5) 595,650 - - 4,082,732 120,453 4,798,835 Transfers out (Note 5) - (551,820) (562,387) - (3,383,445) (4,497,652) Total other financing
sources (uses) 135,690 - (562,387) 4,082,732 (3,262,992) 393,043

NET CHANGE IN
FUND BALANCE (502,008) 3,153,359 (311,983) (78,142) 1,582,714 3,843,940 Fund balances, beginning of year 38,524,109 10,856,500 (122,745) 181,951 10,368,657 59,808,472 Fund balances, end of year 41,677,468 $ 10,354,492 $ (434,728) $ 103,809 $ 11,951,371 $ 63,652,412 $ Statement of Revenues, Expenditures, and Changes in Fund Balances

CITY OF STANTON
Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
See accompanying notes to the basic financial statements. 30 ATTACHMENT A

Net Change in Fund Balances - Total Governmental Funds $ 3,843,940 Governmental activities in the Statement of Activities were reported differently because:

Capital asset purchases (1,100,560)
Depreciation expenses, less $92,284 of depreciation in internal service funds 2,505,133 Total capital assets 1,404,573
(86,350)
(56,853)
(455,531)
983,864
Change in net position of governmental activities $ 5,633,643 Certain revenues in the governmental funds are unavailable revenues because they are not collected within the prescribed time period after year-end. However, the revenues are included in the government-wide statements.

CITY OF STANTON
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2024
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.

The issuance of long-term debt provides current financial resources to governmental funds. However, the repayment reduces long-term liabilities in the governmental activities Statement of Net Position.

OPEB expenditures reported in the governmental funds includes the actuarial Internal service funds are used by management to charge the costs of activities involved in rendering services to departments within the City. The net income is reported with governmental activities. The assets and liabilities of the internal service funds are included in the statement of net position.

See accompanying notes to the basic financial statements. 31 ATTACHMENT A

32 This page intentionally left blank

ATTACHMENT A

33 PROPRIETARY FUNDS

ATTACHMENT A

Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Funds Funds
ASSETS
Current assets:

Cash and investments 7,619,662 $ 1,828,306 $
Restricted cash and investments held
in pension trust - 4,729,380
Receivables:

Accounts 1,856 13,486
Interest 46,511 8,574
Taxes 11,700 -
Prepaids - 30,049
Due from other governments - 37,625
Total current assets 7,679,729 6,647,420
Noncurrent assets:

Capital assets - net of accumulated depreciation 4,540,186 224,293 Total noncurrent assets 4,540,186 224,293
Total assets 6,871,713 12,219,915

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount from pension plan - 4,360,075
Total deferred outflows of resources - 4,360,075

LIABILITIES
Current liabilities:

Accounts payable 75,692 36,994
Compensated absences payable 3,773 228,434
Total current liabilities 79,465 265,428
Noncurrent liabilities:

Compensated absences payable - 89,215
Net pension liability - 9,022,918
Total noncurrent liabilities - 9,112,133
Total liabilities 9,377,561 79,465

DEFERRED INFLOWS OF RESOURCES
Deferred amount from pension plan - 1,181,124
Total deferred inflows of resources - 1,181,124

NET POSITION
Net investment in capital assets 4,540,186 224,293
Unrestricted 7,600,264 448,810
Total net position $ 673,103 12,140,450 $

CITY OF STANTON
Combining Statement of Net Position
Proprietary Funds
June 30, 2024
See accompanying notes to the basic financial statements. 34 ATTACHMENT A

Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Funds Funds
OPERATING REVENUES:

Charges for services 1,191,757 $ 2,154,959 $
Miscellaneous 2,588 36,571
Total operating revenues 2,191,530 1,194,345
OPERATING EXPENSES:

Equipment maintenance and operation 118,919 111,094
Depreciation 143,474 92,284
Administrative and personnel services - 2,630,502
Insurance premiums and claims - 479,314
Contractual services 345,519 27,520
Total operating expenses 3,340,714 607,912
OPERATING INCOME (1,149,184) 586,433
NON-OPERATING REVENUES (EXPENSES):

Property taxes 227,069 -
Investment income 327,691 567,539
Gain on sale of capital assets - 9,495
Total non-operating revenues (expenses) 577,034 554,760 INCOME BEFORE TRANSFERS (572,150) 1,141,193
Transfers out (Note 5) (301,183) -
Total transfers - (301,183)
INCOME BEFORE CAPITAL CONTRIBUTIONS - (301,183)

CAPITAL CONTRIBUTIONS
Capital contributions from government activities - 116,619 Change in net position (455,531) 840,010
Net position, beginning of year 11,300,440 1,128,634
Net position, end of year 12,140,450 $ 673,103 $

CITY OF STANTON
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year ended June 30, 2024
See accompanying notes to the basic financial statements. 35 ATTACHMENT A

Business-Type Governmental
Activity Activities
Sewer Internal
Enterprise Service
Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 2,201,521 1,192,489 $
Cash paid to other suppliers of goods or services (286,667) (588,927) Cash paid to employees for salaries, wages, and benefits (117,118) (1,611,072) Net cash provided (used by) operating activities 1,522 788,704 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Cash paid to other funds - (301,183)
Cash received from property taxes 230,256 -
Net cash provided (used by) non-capital financing activities - (70,927) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets - (128,619) Capital contributions 116,619 -
Proceeds from sale of capital assets 9,495 -
Net cash provided (used by) capital and related financing activities (2,505) - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 568,321 326,593
Net cash provided (used by) investing activities 568,321 326,593 Net increase (decrease) in cash and cash equivalents 1,044,370 567,338 Cash and equivalents, beginning of year 6,575,292 5,990,348 Cash and equivalents, end of year 7,619,662 $ 6,557,686 $

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

Operating income (loss) $ (1,149,184) 586,433 $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 92,284 143,474
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (1,856) -
(Increase) decrease in due from other governments - 9,991 (Increase) decrease in prepaid expense - 19,951
(Increase) decrease in deferred outflows of resources - 907,605 Increase (decrease) in accounts payable 58,852 9,050
Increase (decrease) in claims and judgements - -
Increase (decrease) in compensated absences 1,801 8,326 Increase (decrease) in net pension liability - 689,514
Increase (decrease) in deferred inflows of resources - (586,015) Total adjustments 1,150,706 202,271
Net cash provided (used) by operating activities $ 1,522 788,704 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO STATEMENT OF NET POSITION
Cash and investments $ 1,828,306 7,619,662 $
Restricted cash and investments held in pension trust - 4,729,380 Total cash and cash equivalents 7,619,662 $ 6,557,686 $

CITY OF STANTON
Statement of Cash Flows
Proprietary Funds
For the Year ended June 30, 2024
See accompanying notes to the basic financial statements. 36 ATTACHMENT A

37 FIDUCIARY FUNDS

ATTACHMENT A

PrivatePurpose
Trust
Funds
ASSETS
Current assets:

Cash and investments (Note 3) 1,413,862 $
Restricted assets:

Cash held by fiscal agent (Note 3) 3,736,698
Total assets 5,150,560

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 6,447,345
Total deferred outflow of
resources 6,447,345

LIABILITIES
Current liabilities:

Interest payable 157,152
Bonds payable - current portion (Note 14) 2,745,000
Total current liabilities 2,902,152
Long-term liabilities:

Bonds payable (Note 14) 46,861,506
Total long-term liabilities 46,861,506
Total liabilities 49,763,658

NET POSITION
Restricted for private purpose (38,165,753)
Total net position $ (38,165,753)

CITY OF STANTON
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
See accompanying notes to the basic financial statements. 38 ATTACHMENT A

PrivatePurpose
Trust
Funds
ADDITIONS:

Taxes $ 4,775,148
Investment income 125
Total additions 4,775,273
DEDUCTIONS:

Contractual services 46,905
Public safety 346,149
Interest and fiscal charges 2,362,547
Total deductions 2,755,601
CHANGE IN NET POSITION 2,019,672
Net position (deficit), beginning of year (40,185,425)
Net position (deficit), end of year (38,165,753) $

CITY OF STANTON
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. 39 ATTACHMENT A

40 This page intentionally left blank

ATTACHMENT A

41 NOTES TO BASIC FINANCIAL STATEMENTS

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
42 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Stanton, California (the City), have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant City accounting policies are described below.

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

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

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

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

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
43 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation
Government-Wide Financial Statements
While separate government-wide financial statements are presented, they are interrelated. The governmental activities column incorporates data from the governmental funds and internal service funds, while the business-type activity incorporates data from the government’s enterprise fund. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded in the government-wide financial statements.

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

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

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

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

The City reports the following major governmental funds:

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

Housing Authority Special Revenue Fund – To account for the accumulated resources received from the former Redevelopment Agency’s Low- and ModerateIncome Housing Special Revenue Fund, rental income, and expenses related to lowand moderate-income housing.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
44 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
Other Grants – To account for revenues and expenditures associated with projectspecific grants. The use of the revenues is restricted according to the terms of the grant agreement and/or program.

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.

The City reports the following major enterprise fund:

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

Additionally, the City reports the following fund types:

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

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

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

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
45 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Presentation (Continued)
Interfund Transactions
During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/due to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between funds included in the governmental activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between funds included in business-type activities are eliminated so that only the net amount is included in internal balances in the business-type activities column.

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

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

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

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

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
46 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus and Basis of Accounting (Continued) The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of available spendable resources.

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

Revenues are recognized as soon as they become measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on general long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisition of leases are reported as other financing sources.

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

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

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

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
47 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. New Accounting Pronouncements
For the year ended June 30, 2024, the financial statements include the adoption of GASB Statement No. 100, Accounting Changes and Error Corrections. The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes (such as changes in accounting principles and estimates) and error corrections to provide more understandable, reliable, consistent, and comparable information for making decisions or assessing accountability.

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.
 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.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
48 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. 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 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, 2024
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, 2024
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, 2024
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, 2024.

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, 2024.

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, 2024
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 $3,200,000 as of June 30, 2024.

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, 2024.

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 City Manager for that purpose. The City Manager 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 $6,400,000 as of June 30, 2024.

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, 2024
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, 2024
54 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leases Payable and Subscription Agreements Payable
Lessee: The City recognizes a lease or subscription agreements liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease and subscription agreements liabilities with an initial, individual value of $50,000 or more.

At the commencement of a lease, the City initially measures the lease or subscription agreements liability at the present value of payments expected to be made during the lease term. Subsequently, the lease or subscription agreements liability is reduced by the principal portion of lease payments made. The lease and subscription agreements asset is initially measured as the initial amount of the lease and subscription agreements liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease and subscription agreements 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 and subscription agreements 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 and subscription agreements asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease and subscription agreements 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, 2024
55 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Leases Payable and Subscription Agreements Payable (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, 2024:

Major Governmental Fund:

Other Grants Special Revenue Fund $ (434,728)
Nonmajor Governmental Funds:

FaCT Grant $ (9,016)
JAG Grant $ (194)
The Other Grants, FaCT Grant, and JAG Grant Special Revenue Funds have deficit fund balances due to intergovernmental revenues not being collected within the City’s period of availability.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
56 NOTE 3 CASH AND INVESTMENTS
Cash and Investments
Cash and investments as of June 30, 2024, 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 $ 70,618,548 $ - $ 70,618,548
Private-Purpose Trust Funds - 1,413,862 1,413,862
Restricted Assets:

Cash and Investments Held in
Pension Trust:

City 4,729,380 - 4,729,380
Cash and Investments Held by
Fiscal Agents:

Private-Purpose Trust Funds - 3,736,698 3,736,698
Total Cash and Investments $ 75,347,928 $ 5,150,560 $ 80,498,488 Cash and investments at June 30, 2024, consisted of the following:

Cash in Hand $ 600
Deposits With Financial Institutions 7,479,128
Investments 73,018,760
Total Cash and Investments $ 80,498,488

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 Noncallable 5 Years 100% 25%
United States Government-Sponsored
Agency Securities Callable 5 Years 20% 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%
Negotiable Certificates of Deposits 5 Years 30% 5%
Certificate of Deposit Placement Service
(CDARS) 5 Years 30% None
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, 2024
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, 2024:

Remaining Investment Maturities
12 Months 13 to 24 25 to 36 37 to 60
Investment Type or Less Months Months Months Total
Local Agency Investment
Fund (LAIF) $40,816,406 $ - $ - $ - $40,816,406
U.S. Treasury - 2,512,199 1,224,361 4,498,479 8,235,039 Corporate Notes 1,206,164 851,952 2,189,093 2,966,893 7,214,102 Federal Agency Securities - 644,669 1,059,972 3,109,940 4,814,581 Collateralized Mortgage
Obligations - - 1,002,279 1,880,167 2,882,446
Asset Backed Securities 343,735 - 643,756 1,167,976 2,155,467 Supernational - - - 841,275 841,275
Money Market Fund 136,151 - - - 136,151
Negotiable Certificates of
Deposit 989,536 - - - 989,536
Municipal Bonds 204,377 - - - 204,377
Held by Fiscal Agent:

Pension Trust – Public Agency
Retirement Services 4,729,380 - - - 4,729,380

Total $48,425,749 $4,008,820 $6,119,461 $14,464,730 $73,018,760

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2024
Minimum
Legal
Rating S&P Rating
Moody's
Rating
Local Agency Investment Fund
U.S. Treasury
(LAIF) $ 40,816,406
8,235,039
None
AAA
Not Rated
AA+
Not Rated
Aaa
Corporate Notes 492,637 A A- A2
Corporate Notes 239,762 A A A3
Corporate Notes 246,583 A- A- A3
Corporate Notes 849,158 A+ A A1
Corporate Notes 429,166 A+ A- A1
Corporate Notes 1,062,873 A+ A+ A1
Corporate Notes 363,560 A+ A A2
Corporate Notes 365,073 A+ A+ A2
Corporate Notes 237,384 AA AA A1
Corporate Notes 302,513 AA A+ Aa2
Corporate Notes 1,042,791 AA- A A1
Corporate Notes 860,447 AA- A- A1
Corporate Notes 139,975 AA- AA- A1
Corporate Notes 343,996 AA- A- A2
Corporate Notes 238,184 AA- A Aa3
Federal Agency Securities 4,814,581 AAA AA+ Aaa
Supranational 841,275 AAA AAA Aaa
Collateralized Mortgage Obligations 2,023,865 AAA AA+ Aaa Collateralized Mortgage Obligations 858,581 AAA AAA Aaa Asset Backed Securities 495,941 AAA AAA Aaa
Asset Backed Securities 531,033 AAA N/A Aaa
Asset Backed Securities 847,778 AAA AAA N/A
Asset Backed Securities 280,715 AAA AAA Not Rated
Money Market Funds 136,151 AA2/AAA AAA Aaa
Negotiable Certificates of Deposit 989,536 A/A2 Not Rated Not Rated Municipal Bonds
Held by Fiscal Agents:
204,377 A A Not Rated
Pension Trust-Public Agency
Retirement Services 4,729,380 None Not Rated Not Rated
Total Investments $ 73,018,760

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
60 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
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.

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.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2024
62 NOTE 3 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The City has the following recurring fair value measurements as of June 30, 2024:

Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
U.S. Treasury $ - $ 8,235,039 $ - $ 8,235,039
Corporate Notes - 7,214,102 - 7,214,102
Federal Agency Securities - 4,814,581 - 4,814,581
Collateralized Mortgage Obligations - 2,882,446 - 2,882,446 Asset Backed Securities - 2,155,467 - 2,155,467
Supranational - 841,275 - 841,275
Negotiable Certificates of Deposits - 989,536 - 989,536 Municipal Bonds - 204,377 - 204,377
Total Leveled Investments $ - $27,336,823 $ - 27,336,823 Investments Not Subject to
Fair Value Hierarchy:

Local Agency Investment
Fund (LAIF)

40,816,406
Money Market Fund 136,151
Held by Fiscal Agent:

Pension Trust – Public Agency
Retirement Services

4,729,380

Total $73,018,760

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
63 NOTE 4 CAPITAL ASSETS
Governmental Activities
A summary of changes in governmental activities - capital assets at June 30, 2024, is as follows:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 38,406,365 $ - $ - $38,406,365
Construction in process 1,093,824 3,584,103 (2,038,197) 2,639,730 Total non-depreciable 39,500,189 3,584,103 (2,038,197) 41,046,095 Depreciable:

Buildings and improvements 47,578,437 795,292 - 48,373,729 Furniture and equipment 847,952 358,244 - 1,206,196
Vehicles 820,598 116,619 - 937,217
Right-to-use lease asset-
equipment - 91,244 - 91,244
Infrastructure 44,477,966 1,138,504 (1,057,446) 44,559,024 Total depreciable
capital assets 93,724,953 2,499,903 (1,057,446) 95,167,410 Less accumulated
depreciation for:

Buildings and improvements (14,358,819) (1,132,051) - (15,490,870) Furniture and equipment (672,305) (39,932) - (711,697)
Vehicles (632,641) (90,855) - (723,496)
Right-to-use lease asset-
equipment - (10,278) - (10,278)
Infrastructure (27,856,063) (1,324,841) 1,049,962 (28,130,942)

Total accumulated
depreciation (43,519,828) (2,597,417) 1,049,962 (45,067,283) Total depreciable
capital assets, net 50,205,125 (97,514) (7,484) 50,100,127 Total capital assets, net $ 89,705,314 $ 3,486,589 $(2,045,681) $91,146,222 Depreciation expense was charged in the following functions in the Statement of Activities:

General Government $ 172,084
Public Safety 175,980
Community Development 269,552
Public Works 1,527,282
Culture and Recreation 452,519
Total $2,597,417

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
64 NOTE 4 CAPITAL ASSETS (CONTINUED)
Business-Type Activity
A summary of changes in the business-type activity - capital assets at June 30, 2024, 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 (2,497,246) (130,377) - (2,627,623)
General plant (222,644) (13,097) - (235,741)

Total accumulated
depreciation (2,719,890) (143,474) - (2,863,364)
Total depreciable
capital assets, net 4,683,660 (143,474) - 4,540,186
Total capital assets, net $ 4,683,660 $(143,474) $ - $4,540,186 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 Grants Major Special Revenue Fund $361,324 Nonmajor Governmental Funds 9,986
$371,310
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, 2024
65 NOTE 5 INTERFUND TRANSACTIONS (CONTINUED)
Interfund Transfers
The composition of interfund transfers for the year ended June 30, 2024, is as follows:

Transfers To
Transfers From
General
Fund
Capital
Projects
Fund (2)
Nonmajor
Governmental
Funds (3) Total
General Fund $ - $ 431,367 $ 120,453 $ 551,820
Other Grants Special Revenue Fund - 562,387 - 562,387
Nonmajor Governmental Funds 595,650 2,787,795 - 3,383,445 Sewer Enterprise Funds (5) - 301,183 - 301,183

Total $ 595,650 $4,082,732 $ 120,453 $4,798,835
During the fiscal year ended June 30, 2024, interfund transfers were made for the following purposes:
(1) $595,650 was transferred from Nonmajor Governmental Funds (Gas Tax Special Revenue Fund, Protective Services Tax Special Revenue Fund, and Supplemental Law Enforcement Grants Special Revenue Fund) to reimburse the General Fund for street maintenance, law enforcement, and fire protection costs.
(2) $4,082,732 was transferred from the General Fund, Other Grants Special Revenue Fund, Sewer Enterprise Fund, and Nonmajor Governmental Funds to the Capital Projects Fund to fund various capital projects.
(3) $120,453 was transferred from the General Fund to the Nonmajor 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.

NOTE 6 NOTES AND LOANS RECEIVABLE
The notes and loans receivable balance at June 30, 2024, was as follows:

Rodeo 39 Marketplace LLC $ 1,007,850
Stanton Accessible Apartments Construction 406,679
Housing 85,505
Bonnani 603,641
Housing Rehabilitation 978,000
Employee Computer Loans 2,000
Allowance for Doubtful Accounts (406,679)
Total $ 2,676,996
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 InATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
66 NOTE 6 NOTES AND LOANS RECEIVABLE (CONTINUED)
N-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, 2023, the City reduced the amount due on the loan by $151,254 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, 2024, the outstanding balance on the loan was $1,007,850.

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, 2024, was $406,679, with an allowance for the forgivable amount of $406,679.

Housing loans receivable of $85,505 consists of various low-interest home loans made to low-income families and funded from small cities housing monies.

In June 2020, the City and Life Illuminated, LLC (“Owner”), the developer of the VRV mixeduse project located at 12736 Beach Boulevard and which is also affiliated with Bonanni Development Company III, LLC (“Bonanni”), entered into a Development Agreement (“VRV Agreement”). Among other things, the Agreement provided the developer a vested right to construct the project in exchange for the payment of certain development impact and public benefit fees. The public benefit fees required included $900,000 for a City Facilities Fee. The VRV agreement required payment of these fees when the issuance of occupancy was issued for the VRV project, except for the public benefit fees. Under the VRV Agreement, the public benefit fees may be paid on an alternative schedule upon agreement between the developer and City. On August 31, 2023, the City executed an operating memorandum for the development agreements by and between the City and the Owner; and the City and Bonanni. Under the operating agreement, Bonanni paid half of the total development impact fees and public benefit fees that were due when the certificate of occupancy for the VRV project was issued. The remaining balance of $632,350 will be paid in monthly installments of $11,646 beginning on April 1, 2024, through March 1, 2029. The City will charge interest on the remaining balance at 4% simple interest, monthly, until paid in full. The agreement is collateralized by Bonnani’s other development project within the City located at 12200 Beach Boulevard (“Bigsby Development”). The outstanding balance as of June 30, 2024, was $603,641.

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, 2024, was $978,000.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
67 NOTE 6 NOTES AND LOANS RECEIVABLE (CONTINUED)
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, 2024, was $2,000.

NOTE 7 LONG-TERM LIABILITIES
Governmental Activities
The following is a summary of long-term liability transactions as of June 30, 2024:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated absences $ 309,323 $238,101 $(229,775) $317,649 $228,434 Lease payable - 91,860 (5,510) 86,350 15,890
Total $ 309,323 $329,961 $(235,285) $403,999 $244,324
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 $317,649 at June 30, 2024. This liability is being liquidated in the Employee Benefits Internal Service Fund.

Lease Payable
In December 2023, the City entered into a five-year lease agreement as lessee for the acquisition and use of several copiers. An initial lease liability was recorded in the amount of $91,860 at implementation. As of June 30, 2024, the value of the lease liability was $86,350. The City is required to make monthly principal and interest payments of $1,684 for the copiers. The lease has an interest rate of 5.0%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2024 was $91,244 less accumulated amortization of $10,278. The following future principal and interest payments on the leases payable for June 30 are as follows:

Principal Interest Total
2025 $ 15,890 $ 4,317 $ 20,207
2026 16,684 3,523 20,207
2027 17,518 2,689 20,207
2028 18,394 1,813 20,207
2029 17,864 893 18,757
Total $ 86,350 $13,235 $ 99,585

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2024:

Amounts
Beginning Ending Due within
Balance Additions Deletions Balance One Year
Compensated absences $ 1,972 $ 2,773 $ (972) $3,773 $3,773 Total $ 1,972 $ 2,773 $ (972) $3,773 $3,773
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 $3,773 at June 30, 2024.

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 126 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.

Purchased Insurance
The City also participates in the following coverage programs provided by the Authority:

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
69 NOTE 8 RISK MANAGEMENT (CONTINUED)
(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 $45,909,493. 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 $21,069,679 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 $5,000,000, 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, 2024, the amount of these liabilities was $0. 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 2023-2024.

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
2023 $ 13,870 $ - $ (13,870) $ -
2024 - - - -

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 paid the City of Anaheim $49,305 during the fiscal year ended June 30, 2024.

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, 2024, the City paid $5,495,105 to the Fire Authority.

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2024. 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, 2024
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, 2024
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, 2023, 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 12.470% 10.100% 7.680%
Payment of Unfunded Liability
and Extra Payments $ 517,507 $ 0 $ 0
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 $ 0
(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, 2024
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 $902,656 and $0 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 $2,994,381
Safety Plan 1,365,694
Total Deferred Outflows of Resources $4,360,075

Deferred Inflows of Resources:

Miscellaneous Plan $ 316,074
Safety Plan 865,051
Total Deferred Inflows of Resources $1,181,125

Net Pension Liability (Asset):

Miscellaneous Plan $7,539,712
Safety Plan 1,483,206
Total Net Pension Liability (Asset) $9,022,918

Pension Expense (Credit):

Miscellaneous Plan $ 1,193,823
Safety Plan 719,938
Total Pension Expense (Credit) $ 1,913,761

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2024, 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 $ 7,539,712
Safety 1,483,206
Total Net Pension Liability $ 9,022,918
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, 2023, 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, 2022, rolled forward to June 30, 2023, 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, 2022 and 2023, was as follows:

Miscellaneous Safety
Proportion - June 30, 2022 0.15009% 0.01907%
Proportion - June 30, 2023 0.15078% 0.01984%
Change - Increase (Decrease) 0.00069% 0.00077%

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
75 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2024, 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

$ 902,656

$ -
Change in proportion 29,423 (112,494)
Difference in actual contributions vs.
proportionate share of contributions

1,180

(143,831)
Difference between expected and
actual experience

385,169

(59,749)
Differences between projected and
actual earnings on plan investments

1,220,747

-
Change in assumptions 455,206 -

Total $2,994,381 $ (316,074)
Safety
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ -

$ -
Change in proportion 967,261 (28,501)
Difference in actual contributions vs.
proportionate share of contributions

-

(827,227)
Difference between expected and
actual experience

108,895

(9,323)
Differences between projected and
actual earnings on plan investments

202,976

-
Change in assumptions 86,562 -

Total $ 1,365,694 $ (865,051)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
76 NOTE 11 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The amount of $902,656 and $0 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, 2025. 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
2025 $ 474,753 $ 266,561
2026 335,375 151,916
2027 930,496 76,501
2028 35,027 5,665
$1,775,651 $ 500,643
Actuarial Assumptions
The total pension liability was based on the following assumptions:

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

Discount Rate 6.90% 6.90%
Inflation 2.50% 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, 2024
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 longterm market return expectations, as well as the expected pension fund cash flows.

Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

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

Assumed
Asset Real
Asset Class Allocation Return (a) (b)
Global Equity-Cap-weighted 30.00% 4.54%
Global Equity-Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 27.00%
Mortgage-Backed Securities 5.00% 50.00%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -59.00%
Total 100.00%
(a) An expected inflation of 2.3% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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 5.90% 5.90%
Net Pension Liability $ 11,297,608 $ 3,571,040
Current Discount Rate 6.90% 6.90%
Net Pension Liability (Asset) $ 7,539,712 $ 1,483,206
1% Increase 7.90% 7.90%
Net Pension Liability (Asset) $ 4,446,640 $ (223,747)
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, 2024.

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2023, the following current and former employees were covered by the benefit terms under the plan:

Active employees 33
Inactive employees or beneficiaries currently
receiving benefits 15
Total 48
Benefits
The City pays the greater of $215 per month or the PEMHCA minimum. The PEMHCA minimum was $151 and $157 for 2023 and 2024, 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, 2024, the City made contributions of $37,625, 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, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, rolled forward to June 30, 2024, 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, 2024
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, 2023 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
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, 2023 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, 2024
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 6/30/22
Measurement Date 6/30/22 $ 997,469

$ 843,682

$ 153,787
Changes During the Period:

Service Cost 35,682 - 35,682
Interest on TOL/Return on FNP 61,047 30,096 30,951
Employer Contributions - 27,171 (27,171)
Administrative Expenses - (242) 242
Benefit Payments (65,656) (65,656) -
Plan Experience (212,007) - (212,007)
Changes in Assumptions (43,968) - (43,968)
Employer Contributions Subsequent
to Measurement Date -

-

-
Net Changes in Fiscal Year 2022-23 (224,902) (8,631) (216,271) Balance at Fiscal Year Ending 6/30/23
Measurement Date 6/30/23 $ 772,567

$ 835,051

$ (62,484)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 $ 36,475

Current Discount Rate 6.25%
Net OPEB Liability (Asset) $ (62,484)

1% Increase 7.25%
Net OPEB Liability (Asset) $(144,017)
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 Trend 1% Lower
Net OPEB Liability $(133,625)

Current Trend Valuation Trend
Net OPEB Liability (Asset) $ (62,484)

1% Increase Trend 1% Higher
Net OPEB Liability (Asset) $ 26,211
D. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $84,024. At June 30, 2024, 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

$ 79,671

$ (304,103)
Change of assumptions 251,205 (40,997)
Net difference between projected and
actual earnings on investments

84,892

-

Total $ 415,768 $ (345,100)

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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

2025 $ 39,520
2026 37,895
2027 61,453
2028 23,704
2029 19,420
Thereafter (111,324)
$ 70,668
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, 2024.

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, 2024, were as follows:

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
84 NOTE 13 CLASSIFICATION OF FUND BALANCES (CONTINUED)

General
Fund
Housing
Authority
Special
Revenue
Fund
Other
Grants
Special
Revenue
Fund

Capital
Project
Fund

Nonmajor
Governmental
Funds

Total
Nonspendable:

Prepaid items $ 43,590 $ - $ - $ 130,388 $ - $ 173,978
Notes and loans receivable 1,698,996 - - - - 1,698,996
Total nonspendable 1,742,586 - - 130,388 - 1,872,974
Restricted for:

Low-and moderate income
housing -

10,354,492

-

-

-

10,354,492
Park projects - - - - 3,791,888 3,791,888
Street lighting and median
maintenance -

-

-

-

2,191,395

2,191,395
Streets and roads
Maintenance and capital
projects -

-

-

-

4,590,849

4,590,849
Public safety programs - - - - 299,150 299,150
Traffic signal projects - - - - 30,801 30,801
Pollution remediation - - - - 141,278 141,278
New community center - - - - 280,763 280,763
New police services facility - - - - 253,832 253,832
Fire protection - - - - 7,274 7,274
Senior mobility program - - - - 116,294 116,294
Housing rehabilitation for low
and moderate income
- - - - 187,294 187,294
Disability access program - - - - 69,763 69,763
Total restricted - 10,354,492 - - 11,960,581 22,315,073 Committed for:

Emergency equipment
and maintenance 150,000

-

-

-

-

150,000
Technology equipment 150,000 - - - - 150,000
Emergency disaster
contingency 3,200,000

-

-

-

-

3,200,000
Capital improvement 5,000,000 - - - - 5,000,000
Beautification projects 240,000 - - - - 240,000
Neighborhood preservation
projects 114,000

-

-

-

-

114,000
Other public benefit projects 1,270,754 - - - - 1,270,754 Total committed 10,124,754 - - - - 10,124,754
Assigned for:

Capital improvement projects 2,184,724 - - - - 2,184,724 Information technology
Upgrades and projects 820,520

-

-

-

-

820,520
Mental health counseling
Program 111,951

-

-

-

-

111,951
Summer camp program 28,200 - - - - 28,200
Temporary staff 548,850 - - - - 548,850
City rebrand and
implementation 22,750

-

-

-

-

22,750
Safe Streets Together 720,000 - - - - 720,000
General Plan Update 60,000 - - - - 60,000
Strategic Plan Update 15,000 - - - - 15,000
North Service Planning Area
operations 100,000

-

-

-

-

100,000
Restriping Stanton Central
Park parking lot 10,000

-

-

-

-

10,000
Other purposes 20,976 - - - - 20,976
Total assigned 4,642,971 - - - - 4,642,971
Unassigned for:

Economic uncertainty 6,400,000 - - - - 6,400,000
Unassigned 18,767,157 - (434,728) (26,579) (9,210) 18,296,640 Total unassigned 25,167,157 - (434,728) (26,579) (9,210) 24,696,640 $41,677,468 $10,354,492 $ (434,728) $(103,809) $ 11,951,371 $63,652,412

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2024, were as follows:

Beginning Ending Due within
Balance Additions Deletions Balance One Year
Bonds Payable
Tax Allocation Bonds
(TAB) 2016 Series A $ 5,060,000 $ - $ (300,000) $ 4,760,000 $ 310,000 Add Bond Premium 336,190 - (30,563) 305,627 -
TAB, 2016 Series B 9,365,000 - (575,000) 8,790,000 595,000 Less Issuance
Discounts (57,619) - 5,238 (52,381) -
TAB, 2016 Series C 9,695,000 - - 9,695,000 -
Add Bond Premium 608,830 - (35,813) 573,017 -
TAB, 2016 Series D 19,335,000 - (1,240,000) 18,095,000 1,280,000 Less Issuance
Discounts (382,134) - 22,479 (359,655) -
TAB, 2020-A Payable 7,310,000 - (540,000) 6,770,000 560,000 Add Bond Premium 1,217,467 - (187,569) 1,029,898 -
Total $52,487,734 $ - $(2,881,228) $49,606,506 $2,745,000

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 $4,760,000 at June 30, 2024.

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

Year Ending June 30, Principal Interest Total
2025 $ 310,000 $ 170,025 $ 480,025
2026 325,000 154,150 479,150
2027 345,000 137,400 482,400
2028 360,000 119,775 479,775
2029 380,000 101,275 481,275
2030-2034 2,110,000 303,269 2,413,269
2035-2036 930,000 28,931 958,931
Total $ 4,760,000 $ 1,014,825 $ 5,744,825
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, 2024
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 $8,790,000 at June 30, 2024.

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

Year Ending June 30, Principal Interest Total
2025 $ 595,000 $ 333,578 $ 928,578
2026 615,000 314,288 929,288
2027 630,000 293,269 923,269
2028 655,000 269,144 924,144
2029 680,000 242,444 922,444
2030-2034 3,850,000 769,200 4,619,200
2035-2036 1,765,000 73,528 1,838,528
Total $ 8,790,000 $ 2,295,451 $ 11,085,451

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, 2024.

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

Year Ending June 30, Principal Interest Total
2025 $ - $ 484,750 $ 484,750
2026 - 484,750 484,750
2027 - 484,750 484,750
2028 - 484,750 484,750
2029 - 484,750 484,750
2030-2034 - 2,423,750 2,423,750
2035-2039 5,530,000 2,018,250 7,548,250
2040 4,165,000 210,875 4,375,875
Total $ 9,695,000 $ 7,076,625 $ 16,771,625

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 $18,095,000 at June 30, 2024.

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

Year Ending June 30, Principal Interest Total
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 1,410,000 550,175 1,960,175
2029 1,465,000 492,675 1,957,675
2030-2034 6,070,000 1,647,075 7,717,075
2035-2039 3,770,000 675,325 4,445,325
2040 1,420,000 60,988 1,480,988
Total $ 18,095,000 $ 5,360,463 $ 23,455,463

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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 outstanding balance of the bonds was $6,770,000 at June 30, 2024.

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

Year Ending June 30, Principal Interest Total
2025 $ 560,000 $ 259,600 $ 819,600
2026 580,000 236,800 819,800
2027 605,000 213,100 818,100
2028 635,000 188,300 823,300
2029 655,000 162,500 817,500
2030-2034 2,740,000 445,800 3,185,800
2035-2036 995,000 40,100 1,035,100
Total $ 6,770,000 $ 1,546,200 $ 8,316,200

ATTACHMENT A

CITY OF STANTON

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
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, except as indicated in Note 18.

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 NONEXCHANGE TRANSACTION
During the fiscal year 2024, the City entered into a lease agreement with a Developer for the right to use a certain easement of which the City owns. The term is for 5 years and there are no rental payments due. This transaction was classified as a non-exchange transaction under GASB No. 33 – Accounting and Financial Reporting for Non-Exchange Transactions as the City was deemed not to receive equal value for the property.

NOTE 17 CHANGE IN FINANCIAL REPORTING
In the prior fiscal year, the City reported the Lighting and Median Maintenance, the American Rescue Plan Act, and the CDBG Special Revenue Funds as major funds. However, in fiscal year 2024 they no longer met the major fund threshold criteria, hence, they were reported as non-major funds. Funds that met major fund criteria in fiscal year 2024, were the Housing Authority and Other Grants Special Revenue Funds and the Capital Project Fund. There was no effect on fund balance.

NOTE 18 SUBSEQUENT EVENTS
As of this date, the City agreed to have a judgment entered against it in a legal matter. The City and the Plaintiff are working on the documentation. Once finalized, the City’s damages liability would be $1 million. This payment would be made from the City’s General Fund.

Management has evaluated subsequent events through December 22, 2024 which is the date the financial statements were available to be issued, and has determined that there are no other 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 2024 2023 2022 2021 2020
Measurement period June 30 2023 2022 2021 2020 2019
Proportion of the net pension liability 0.15078% 0.15009% 0.18344% 0.14298% 0.13918% Proportionate share of the net pension
liability $ 7,539,712 $ 7,023,242 $ 3,483,253 $ 6,031,096 $ 5,573,525 Covered payroll $ 3,914,558 $ 3,562,190 $ 3,145,319 $ 2,740,004 $ 2,544,215 Proportionate Share of the net pension
liability as percentage of covered payroll 192.61% 197.16% 110.74% 220.11% 219.07% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 72.86% 73.21% 85.91% 74.82% 76.17% 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.

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

The discount rate was reduced from 7.15% to 6.90%.

CITY OF STANTON
Schedule of Proportionate Share of the Net Pension Liability - CalPERS Miscellaneous Pension Plan Year Ended June 30, 2024
Last 10 Fiscal Years
94 ATTACHMENT A

Fiscal year ended June 30 2019 2018 2017 2016 2015
Measurement period June 30 2018 2017 2016 2015 2014
Proportion of the net pension liability 0.13424% 0.13038% 0.12626% 0.11916% 0.14740% Proportionate share of the net pension
liability $ 5,059,084 $ 5,139,562 $ 4,386,167 $ 3,269,137 $ 3,642,924 Covered payroll $ 2,644,646 $ 2,188,343 $ 2,097,117 $ 1,968,200 $ 1,884,740 Proportionate Share of the net pension
liability as percentage of covered payroll 191.30% 234.86% 209.15% 166.10% 193.29% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 75.26% 73.31% 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, 2024
95 ATTACHMENT A

Fiscal year ended June 30 2024 2023 2022 2021 2020
Contractually required contribution
(actuarially determined) $ 902,656 $ 843,262 $ 740,035 $ 645,052 $ 601,444 Contributions in relation to the actuarially
determined contributions (893,262) (902,656) (841,240) (695,052) (601,444) Contribution deficiency (excess) -$ $ (101,205) (50,000) $ (50,000) $ - $ Covered payroll $ 3,914,558 $ 3,914,558 $ 3,562,190 $ 3,145,319 $ 2,740,004 Contributions as a percentage of covered payroll 23.06% 22.82% 23.62% 22.10% 21.95% Notes to schedule:

Valuation date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.500% 2.500% 2.500% 2.500% 2.625%
Salary increases 2.75% (2) 2.75% (2) (2) (2) (2)
Investment rate of return 7.00% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 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.

Year Ended June 30, 2024

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

Fiscal year ended June 30 2019 2018 2017 2016 2015
Contractually required contribution
(actuarially determined) 469,444 $ 402,799 $ 327,584 $ 288,043 $ 745,208 $ Contributions in relation to the actuarially
determined contributions (469,444) (402,799) (327,584) (288,043) (745,208) Contribution deficiency (excess) -$ - $ - $ - $ - $
Covered payroll 2,544,215 $ 2,644,646 $ 2,188,343 $ 2,097,117 $ 1,968,200 $ Contributions as a percentage of covered payroll 18.45% 15.23% 14.97% 13.74% 37.86% Notes to schedule:

Valuation date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value 15 Year
Smoothed
Fair Value
Method
Inflation 2.750% 2.750% 2.750% 2.750% 2.750%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
Year Ended June 30, 2024

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

Fiscal year ended June 30 2024 2023 2022 2021 2020
Measurement period June 30 2023 2022 2021 2020 2019
Proportion of the net pension liability 0.01984% 0.01907% -0.04423% 0.00935% 0.00763% Proportionate share of the net pension
liability (asset) $ 1,483,206 $ 1,310,162 $ (1,552,129) $ 622,970 $ 476,073 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) 90.25% 91.58% -109.72% 96.21% 97.30% Notes to schedule:

Benefit changes:

There were no changes in benefits.

Changes in assumptions:

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

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

The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan.

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.

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

The discount rate was reduced from 7.15% to 6.90%.

Year Ended June 30, 2024

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 2019 2018 2017 2016 2015
Measurement period June 30 2018 2017 2016 2015 2014
Proportion of the net pension liability 0.09504% 0.09231% 0.09501% 0.09572% 0.08756% Proportionate share of the net pension
liability $ 5,576,370 $ 5,515,903 $ 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% 0.00% 0.00% Proportionate Share of the Fiduciary
Net Position as a percentage
of the Total Pension Liability 68.32% 68.32% 71.79% 77.44% 81.42% Year Ended June 30, 2024

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 2024 2023 2022 2021 2020
Contractually required contribution (actuarially determined) -$ 173,625 $ 103,850$ $ 80,284 $ - Contributions in relation to the actuarially
determined contributions - (103,850) (173,625) (80,284) - Contribution deficiency (excess) - -$ $ $ - $ - - $
Covered payroll -$ -$ -$ -$ -$
Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% Notes to schedule:

Valuation date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.500% 2.500% 2.500% 2.625%
Salary increases 2.75% (2) 2.75% (2) (2) (2) (2)
Investment rate of return 6.90% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 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.

CITY OF STANTON
Schedule of Contributions - CalPERS Safety Pension Plan Last 10 Fiscal Years
Year Ended June 30, 2024
100

ATTACHMENT A

Fiscal year ended June 30 2019 2018 2017 2016 2015
Contractually required contribution (actuarially determined) 559,861 $ 469,366 $ 226,818$ 188,537$ $ 157,551 Contributions in relation to the actuarially
determined contributions (469,366) (5,540,542) (226,818) (188,537) (157,551) 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 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and assumptions used to
determine contribution rates:

Actuarial cost method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value 15 Year Fair
Value
Method
Inflation 2.750% 2.750% 2.750% 2.750% 2.750%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)

CITY OF STANTON
Schedule of Contributions - CalPERS Safety Pension Plan Last 10 Fiscal Years (Continued)
Year Ended June 30, 2024
101

ATTACHMENT A

Fiscal Year End 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB Liability
Service cost 35,682 $ 34,727 $ 20,853 $ 20,295 $ 11,308 $ Interest on the total OPEB Liability 61,047 59,894 64,483 64,039 33,517 Actual and expected experience difference (212,007) (7,697) (110,610) 124,860 - Changes in assumptions (43,968) 61,360 - 353,544 -
Actual minus expected benefit payment - - (6,685) (659) 14,271 Benefit payments (68,495) (65,656) (70,646) (77,577) (52,347) Net change in total OPEB liability (224,902) 18,429 (41,245) 6,098 485,153 Total OPEB liability - beginning 979,040 997,469 1,020,285 1,014,187 529,034 Total OPEB liability - ending (a) 772,567 $ 997,469 $ 979,040 $ 1,020,285 $ 1,014,187 $ Plan Fiduciary Net Position
Contribution - employer 27,171 $ 25,495 $ 26,356 $ 25,640 $ -$ Net investment income (loss) 30,096 (126,752) 173,850 47,942 60,321 Benefit payments (65,656) (68,495) (70,646) (77,577) (52,347) Administrative expense (242) (258) (322) (437) (189)
Net change in plan fiduciary net position (8,631) (170,010) 129,238 (4,432) 7,785 Plan fiduciary net position - beginning 1,013,692 843,682 884,454 888,886 881,101 Plan fiduciary net position - ending (b) 835,051 $ 843,682 $ 1,013,692 $ 884,454 $ 888,886 $ Net OPEB liability (asset) - ending (a)-(b) (62,484) $ 153,787 $ (34,652) $ 135,831 $ 125,301 $ Plan fiduciary net position as a percentage
of the total OPEB liability (asset) 108.09% 84.58% 103.54% 86.69% 87.65% Employee payroll 3,914,558 $ 3,562,190 $ 3,145,319 $ 2,740,004 $ 2,544,215 $ Net OPEB liability (asset) as a
percentage of employee payroll -1.60% 4.32% -1.10% 4.96% 4.92% 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 seven years are shown.

CITY OF STANTON
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios Year Ended June 30, 2024
Last 10 Fiscal Years *
102

ATTACHMENT A

Fiscal Year End 6/30/2019 6/30/2018
Measurement Date 6/30/2018 6/30/2017
Total OPEB Liability
Service cost 11,005 $ 10,710 $
Interest on the total OPEB Liability 33,513 33,968
Actual and expected experience difference - -
Changes in assumptions - -
Actual minus expected benefit payment - -
Benefit payments (52,812) (51,136)
Net change in total OPEB liability (6,618) (8,134)
Total OPEB liability - beginning 543,786 535,652
Total OPEB liability - ending (a) 529,034 $ 535,652 $
Plan Fiduciary Net Position
Contribution - employer -$ 52,812 $
Net investment income (loss) 54,438 59,303
Benefit payments (51,136) (52,812)
Administrative expense (432) (1,623)
Net change in plan fiduciary net position 1,679 58,871
Plan fiduciary net position - beginning 879,422 820,551 Plan fiduciary net position - ending (b) 881,101 $ 879,422 $ Net OPEB liability (asset) - ending (a)-(b) (352,067) $ (343,770) $ Plan fiduciary net position as a percentage
of the total OPEB liability (asset) 166.55% 164.18%
Employee payroll 2,664,646 $ 2,188,343 $
Net OPEB liability (asset) as a
percentage of employee payroll -13.21% -15.71%

CITY OF STANTON
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios Last 10 Fiscal Years * (Continued)
Year Ended June 30, 2024
103

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments $ 25,416,000 $ 26,024,945 $ 27,033,255 $ 1,008,310 Licenses and permits 1,046,150 1,081,150 959,428 (121,722) Intergovernmental 370,990 466,250 399,522 (66,728)
Charges for services 2,063,920 2,640,979 2,549,161 (91,818) Fines and forfeitures 442,700 475,455 489,223 13,768
Investment income 199,000 659,000 1,718,673 1,059,673
Rental income 221,085 228,485 141,825 (86,660)
Miscellaneous 727,703 165,480 60,523 (667,180)
Total revenues 29,925,325 32,303,967 33,351,610 1,047,643

EXPENDITURES
Current:

General government 3,714,535 4,296,409 3,962,247 334,162 Public safety 21,316,915 20,456,251 20,163,920 292,331
Community development 2,143,275 2,345,559 1,750,111 595,448 Public works 3,024,735 3,108,160 2,818,335 289,825
Culture and recreation 1,454,775 1,712,230 1,518,090 194,140 Capital outlay 350,000 52,111 111,134 (59,023)
Debt service:

Principal retirement - - 5,511 (5,511)
Interest and fiscal charges - - (4,593) 4,593
Total expenditures 32,004,235 31,970,720 30,333,941 1,636,779

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 333,247 (2,078,910) 3,017,669 2,684,422

OTHER FINANCING SOURCES
(USES)
Proceeds from lease - - 91,860 91,860
Transfers in 682,000 686,000 595,650 (90,350)
Transfers out (1,626,131) (781,060) (551,820) 1,074,311 Total other financing sources (uses) (99,060) (940,131) 135,690 1,075,821 Net change in fund balance $ (606,884) (2,177,970) $ 3,153,359 3,760,243 $ Fund balance, beginning of year 38,524,109
Fund balance, end of year 41,677,468 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund
For the Year Ended June 30, 2024
104

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Investment income 25,000 $ 275,000 $ 511,471 $ 236,471 $ Rental income 620,000 650,000 623,076 (26,924)
Total revenues 645,000 925,000 1,134,547 209,547

EXPENDITURES
Current:

General government 311,590 461,450 397,881 63,569
Public safety 156,035 180,035 161,823 18,212
Community development 753,085 4,864,580 1,076,851 3,787,729 Total expenditures 1,220,710 5,506,065 1,636,555 3,869,510 Net change in fund balance $ (4,581,065) (575,710) $ (502,008) 4,079,057 $ Fund balance, beginning of year 10,856,500
Fund balance, end of year 10,354,492 $

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, 2024
105

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 276,000 $ 8,350,275 $ 261,735 $ (8,088,540) $ Investment income - 10,000 5,840 (4,160)
Total revenues 276,000 8,360,275 267,575 (8,092,700)

EXPENDITURES
Current:

Public works 123,835 - 17,171 106,664
Total expenditures - 123,835 17,171 106,664

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 8,236,440 276,000 250,404 (7,986,036)

OTHER FINANCING SOURCES
(USES)
Transfers out (276,000) (8,113,695) (562,387) 7,551,308 Total other financing sources (uses) (276,000) (8,113,695) (562,387) 7,551,308 Net change in fund balance 122,745 -$ $ (311,983) (434,728) $ Fund balance (deficit), beginning of year (122,745)
Fund balance (deficit), end of year (434,728) $

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, 2024
106

ATTACHMENT A

CITY OF STANTON

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
107
JUNE 30, 2024
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
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ATTACHMENT A

109

SUPPLEMENTARY INFORMATION

ATTACHMENT A

110

GENERAL FUND

ATTACHMENT A

111

CITY OF STANTON

DESCRIPTION OF GENERAL FUNDS
JUNE 30, 2024
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.

PCTA Administration – To account for the administrative costs incurred on behalf of the Public Cable Television Authority (PCTA), which primarily consist of personnel costs and digital subscriptions, which are reimbursed by PCTA.

Public Benefit Fees – To account for developer contributions received pursuant to negotiated developer agreements. These fees can be used at the City’s discretion for the maintenance or improvement of any public facility within the City, including parks, streets, and facilities.

Beautification Fees – To account for developer contributions received pursuant to negotiated developer agreements. These fees can be used at the City’s discretion for beautification and enhancement projects anywhere within the City.

Neighborhood Preservation Fees – To account for developer contributions received pursuant to negotiated developer agreements. These fees can be used at the City’s discretion.

Cannabis Community Benefit Fees – To account for community contributions received from cannabis businesses pursuant to community benefit agreements. These fees can be used at the City’s discretion.

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

ATTACHMENT A

Transaction Public
and Use PCTA Benefit Beautification
General Tax Administration Fees Fees
ASSETS
Cash and investments 37,156,490 $ (299,575) $ (11,730) $ 1,872,383 $ 240,000 $ Receivables:

Accounts 457,204 - 12,165 - -
Interest 420,228 - - 2,012 -
Taxes 1,664,230 1,168,508 - - -
Prepaid costs 43,590 - - - -
Due from other funds 371,310 - - - -
Due from other governments 202,497 - - - -
Notes and loans receivable - 1,095,355 - 603,641 -
Total assets $ 868,933 41,410,904 $ 435 $ 2,478,036 $ 240,000 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 843,291 $ 685,962$ $ 435 -$ -$
Accrued liabilities 852,123 - - - -
Deposits payable 4,000 - - - -
Unearned revenue - 20,419 - - -
Total liabilities 685,962 1,719,833 435 - -
Deferred inflows of resources:

Unavailable revenue 231,203 165,038 12,165 603,641 -
Total deferred inflows
of resources 165,038 231,203 12,165 603,641 -
Fund Balances (Deficits):

Nonspendable 1,138,945 - 603,641 - -
Committed 8,500,000 - 1,270,754 - 240,000
Assigned 4,637,971 - - - -
Unassigned 17,933 25,182,952 (12,165) - -
Total fund balances 17,933 39,459,868 (12,165) 1,874,395 240,000 Total liabilities, deferred
inflows of resources
and fund balances $ 868,933 41,410,904 $ 435 $ 2,478,036 $ 240,000 $

CITY OF STANTON
Combining Balance Sheet
General Fund
June 30, 2024
112

ATTACHMENT A

Neighborhood Cannabis Total
Preservation Community Developer General
Fees Benefit Fees Deposits Funds
ASSETS
Cash and investments 114,000 $ 5,000 $ 791 $ 39,077,359 $ Receivables:

Accounts - - 53,073 522,442
Interest - - 422,240 -
Taxes - - 2,832,738 -
Prepaid costs - - - 43,590
Due from other funds - - 371,310 -
Due from other governments - - 202,497 -
Notes and loans receivable - - - 1,698,996
Total assets $ 114,000 5,000 $ 53,864 $ 45,171,172 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable - $ -$ $ 22,354 $ 1,552,042
Accrued liabilities - - 852,123 -
Deposits payable - - - 4,000
Unearned revenue - - - 20,419
Total liabilities - - 22,354 2,428,584
Deferred inflows of resources:

Unavailable revenue - - 53,073 1,065,120
Total deferred inflows
of resources - - 53,073 1,065,120
Fund Balances (Deficits):

Nonspendable - - 1,742,586 -
Committed 114,000 - 10,124,754 -
Assigned - 5,000 4,642,971 -
Unassigned - - (21,563) 25,167,157
Total fund balances 5,000 114,000 (21,563) 41,677,468
Total liabilities, deferred
inflows of resources
and fund balances $ 114,000 5,000 $ 53,864 $ 45,171,172 $

CITY OF STANTON
Combining Balance Sheet
General Fund
June 30, 2024
113

ATTACHMENT A

Transaction Public
and Use PCTA Benefit Beautification
General Tax Administration Fees Fees

REVENUES
Taxes and assessments 20,488,144 $ 6,130,752 $ -$ 358,359 $ 50,000 $ Licenses and permits 959,428 - - - -
Intergovernmental 399,522 - - - -
Charges for services 2,532,102 - - - -
Fines and forfeitures 489,223 - - - -
Investment income 1,710,433 - - 8,240 -
Rental income 141,825 - - - -
Miscellaneous - 53,475 2,048 - -
Total revenues 26,774,152 6,130,752 2,048 366,599 50,000

EXPENDITURES
Current:

General government 3,918,398 1,822 14,213 - -
Public safety 13,372,694 6,791,226 - - -
Community development 1,749,231 - - - -
Public works 2,818,335 - - - -
Culture and recreation 1,518,090 - - - -
Capital outlay 111,134 - - - -
Debt service:

Principal retirement 5,511 - - - -
Interest and fiscal charges 4,593 - - - -
Total expenditures 23,497,986 6,793,048 14,213 - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (662,296) 3,276,166 (12,165) 366,599 50,000

OTHER FINANCING

SOURCES (USES)
Proceeds from lease 91,860 - - - -
Transfers in 783,677 - 1,507,796 - 190,000
Transfers out (2,357,616) (188,027) - - -
Total other financing
sources (uses) (1,482,079) (188,027) - 1,507,796 190,000 Net change in fund balance (850,323) 1,794,087 (12,165) 1,874,395 240,000 Fund balance (deficit),
beginning of year 37,665,781 868,256 - - -
Fund balance (deficit),
end of year 39,459,868 $ 17,933 $ (12,165) $ 1,874,395 $ 240,000 $

CITY OF STANTON
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance General Fund
For the Year Ended June 30, 2024
114

ATTACHMENT A

Neighborhood Cannabis Total
Preservation Community Developer General
Fees Benefit Fees Deposits Eliminations Funds

REVENUES
Taxes and assessments 6,000 $ -$ -$ $ 27,033,255 - $
Licenses and permits - - - 959,428 -
Intergovernmental - - - 399,522 -
Charges for services - - 17,059 2,549,161 -
Fines and forfeitures - - - 489,223 -
Investment income - - - 1,718,673 -
Rental income - - - 141,825 -
Miscellaneous 5,000 - - - 60,523
Total revenues 6,000 5,000 17,059 - 33,351,610

EXPENDITURES
Current:

General government - - 27,814 3,962,247 -
Public safety - - - 20,163,920 -
Community development - - 880 1,750,111 -
Public works - - - 2,818,335 -
Culture and recreation - - - 1,518,090 -
Capital outlay - - - 111,134 -
Debt service:

Principal retirement - - - - 5,511
Interest and fiscal charges - - - - 4,593
Total expenditures - - 28,694 - 30,333,941

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 5,000 6,000 (11,635) - 3,017,669

OTHER FINANCING

SOURCES (USES)
Proceeds from lease - - - - 91,860
Transfers in 108,000 - (1,993,823) - 595,650
Transfers out - - - 1,993,823 (551,820)
Total other financing
sources (uses) 108,000 - - - 135,690
Net change in fund balance 5,000 114,000 (11,635) - 3,153,359 Fund balance (deficit),
beginning of year - - (9,928) - 38,524,109
Fund balance (deficit),
end of year 114,000 $ 5,000 $ (21,563) $ - $ 41,677,468 $

CITY OF STANTON
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance (Continued) General Fund
For the Year Ended June 30, 2024
115

ATTACHMENT A

NONMAJOR GOVERNMENTAL FUNDS
116

ATTACHMENT A

CITY OF STANTON
117

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024

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

Supplemental Law Enforcement Grant – 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.

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

Lighting and Median Maintenance – To account for benefit assessments levied under the 1919 Act Stanton Municipal Lighting District and the Stanton Lighting and Landscaping District No. 1 (Landscaping and Lighting Act of 1972) for street lighting and landscaping maintenance within the City.

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
118

DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024

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

Justice Assistant Grant (JAG) – To account for proceeds received from the United States Department of Justice for the Edward Byrne Memorial Justice Assistance Grant Program to fund the Homeless Outreach and Proactive Engagement Center (HOPE Center) to align homeless outreach and engagement in the North Orange County area
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
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

119
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ATTACHMENT A

Supplemental Air
Protective Law Quality
Services Enforcement Improvement FaCT
Gas Tax Tax Grant Program Grant
Cash and investments $ 2,477,680 3,975$ $ 300,031 $ 140,323 -$ Receivables:

Accounts - - - - -
Interest 14,447 - 1,881 1,021 -
Taxes - 4,734 - - -
Prepaid costs - - - - -
Due from other governments - 92,830 94,663 13,149 50,230 Total assets $ 8,709 2,584,957 $ 396,575 $ 154,493 $ 50,230 $ Liabilities:

Accounts payable 56,784 $ 1,435$ $ 2,762 -$ 40,827 $
Accrued liabilities - - - - 66
Unearned revenues - - - - -
Due to other funds - - - - 9,403
Total liabilities 1,435 56,784 2,762 66 50,230
Deferred inflows of resources:

Unavailable revenue - - 94,663 13,149 9,016
Total deferred inflows
of resources - - 94,663 13,149 9,016
Fund Balances (Deficits):

Restricted 2,528,173 7,274 299,150 141,278 -
Unassigned - - - - (9,016)
Total fund balances 7,274 2,528,173 299,150 141,278 (9,016) Total liabilities, deferred
inflows and fund balances $ 8,709 2,584,957 $ 396,575 $ 154,493 $ 50,230 $

INFLOWS OF RESOURCES,
Special Revenue Funds

CITY OF STANTON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED
ASSETS

AND FUND BALANCES
120

ATTACHMENT A

Community
Development Development
Block Senior Impact
Grant Transportation Measure M PSTF Fees
Cash and investments $ 338,639 $ 108,213 $ 765,738 48,442$ $ 807,199 Receivables:

Accounts - - - - -
Interest 1,329 642 4,063 - 4,835
Taxes - - - - -
Prepaid costs - - - - -
Due from other governments 7,439 13,170 112,827 - -
Total assets $ 116,294 353,138 $ 882,628 $ 48,442 $ 812,034 $ Liabilities:

Accounts payable 22,286 $ - $ - $ -$ -$
Accrued liabilities - - - - -
Unearned revenues 130,388 - 48,442 - -
Due to other funds - - - - -
Total liabilities - 152,674 - 48,442 -
Deferred inflows of resources:

Unavailable revenue 13,170 - - - -
Total deferred inflows
of resources - 13,170 - - -
Fund Balances (Deficits):

Restricted 187,294 116,294 882,628 - 812,034
Unassigned - - - - -
Total fund balances 116,294 187,294 882,628 - 812,034
Total liabilities, deferred
inflows and fund balances $ 116,294 353,138 $ 882,628 $ 48,442 $ 812,034 $ Special Revenue Funds
ASSETS

INFLOWS OF RESOURCES,

AND FUND BALANCES

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

LIABILITIES, DEFERRED
121

ATTACHMENT A

Lighting Stanton
and Central
Median Park JAG
Maintenance RMRA Maintenance Grant CASP
Cash and investments $ 2,233,851 749,171$ $ 3,576 -$ 69,763 $ Receivables:

Accounts 2,441 - - - -
Interest 13,018 8,461 - - -
Taxes 7,601 - - - -
Prepaid costs - - - - -
Due from other governments 230,678 7,358 - 87,120 -
Total assets $ 988,310 2,264,269 $ 3,576 $ 87,120 $ 69,763 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 65,516 $ -$ $ 3,576 $ 86,538 -$
Accrued liabilities - - - - -
Unearned revenues - - - - -
Due to other funds - - - 583 -
Total liabilities - 65,516 3,576 87,121 -
Deferred inflows of resources:

Unavailable revenue 7,358 54,900 - 193 -
Total deferred inflows
of resources 54,900 7,358 - 193 -
Fund Balances (Deficits):

Restricted 2,191,395 933,410 - - 69,763
Unassigned - - - (194) -
Total fund balances 933,410 2,191,395 - (194) 69,763
Total liabilities, deferred
inflows and fund balances $ 988,310 2,264,269 $ 3,576 $ 87,120 $ 69,763 $

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
ASSETS
122

ATTACHMENT A

Capital
Projects Fund
Total
Park in Nonmajor
Lieu Governmental
Fees Funds
Cash and investments $ 3,768,202 $ 11,814,803
Receivables:

Accounts - 2,441
Interest 23,686 73,383
Taxes - 12,335
Prepaid costs - -
Due from other governments 709,464 -
Total assets $ 12,612,426 3,791,888 $
Liabilities:

Accounts payable -$ 279,724 $
Accrued liabilities - 66
Unearned revenues - 178,830
Due to other funds 9,986 -
Total liabilities 468,606 -
Deferred inflows of resources:

Unavailable revenue - 192,449
Total deferred inflows
of resources 192,449 -
Fund Balances (Deficits):

Restricted 3,791,888 11,960,581
Unassigned (9,210) -
Total fund balances 11,951,371 3,791,888
Total liabilities, deferred
inflows and fund balances $ 12,612,426 3,791,888 $

CITY OF STANTON
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
ASSETS

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES, DEFERRED
123

ATTACHMENT A

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

Taxes and assessments -$ -$ -$ -$ -$
Intergovernmental 1,075,391 - 186,159 369,728 39,423
Charges for services - 390,708 - - -
Investment income 99,405 - 16,003 10,778 -
Miscellaneous - - - - -
Total revenues 390,708 1,174,796 202,162 50,201 369,728 EXPENDITURES:

Current:

General government - - - 413 -
Public safety - 1,435 35,364 - -
Public works 264,997 - - - -
Culture and recreation - - - - 439,941
Capital outlay 80,440 - - 150,552 -
Debt service:

Interest and fiscal charges - - - - -
Total expenditures 1,435 345,437 35,364 150,965 439,941

REVENUES OVER
(UNDER) EXPENDITURES 389,273 829,359 166,798 (100,764) (70,213)

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - 61,197
Transfers out (386,000) (152,508) (160,000) - -
Total other financing
sources (uses) (386,000) (152,508) (160,000) - 61,197

NET CHANGE IN FUND
BALANCES 3,273 676,851 6,798 (100,764) (9,016)
Fund balances (deficits),
beginning of year 4,001 1,851,322 292,352 242,042 -
Fund balances (deficits),
end of year 2,528,173 $ 7,274 $ 299,150 $ 141,278 $ (9,016) $ 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, 2024
124

ATTACHMENT A

Community
Development Development
Block Senior Impact
Grant Transportation Measure M PSTF Fees
REVENUES:

Taxes and assessments -$ $ - -$ -$ -$
Intergovernmental 486,506 46,694 708,167 34,558 -
Charges for services - - - - 329,372
Investment income 7,968 4,187 49,191 - 35,208
Miscellaneous - - - - -
Total revenues 50,881 494,474 757,358 34,558 364,580
EXPENDITURES:

Current:

General government - - - - -
Public safety - - - 34,558 -
Public works - - - - -
Culture and recreation - 10,790 - - -
Capital outlay 22,391 - - - -
Debt service:

Interest and fiscal charges - - - - -
Total expenditures 10,790 22,391 - 34,558 -

REVENUES OVER
(UNDER) EXPENDITURES 40,091 472,083 757,358 - 364,580

OTHER FINANCING
SOURCES (USES):

Transfers in - 69 - - -
Transfers out - (149,676) (917,952) - -
Total other financing
sources (uses) 69 (149,676) (917,952) - -

NET CHANGE IN FUND
BALANCES 40,160 322,407 (160,594) - 364,580
Fund balances (deficits),
beginning of year (135,113) 76,134 1,043,222 - 447,454
Fund balances (deficits),
end of year 187,294 $ 116,294 $ 882,628 $ - $ 812,034 $ 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, 2024
125

ATTACHMENT A

Lighting Stanton
t and Central
Median Park JAG
Maintenance RMRA Maintenance Grant CASP
REVENUES:

Taxes and assessments 868,626 $ -$ -$ -$ -$
Intergovernmental - 1,008,604 - 1,655,562 -
Charges for services 224,767 - - - 8,633
Investment income 99,880 59,234 - - -
Miscellaneous - 40,207 50,000 - -
Total revenues 1,067,838 1,233,480 50,000 1,655,562 8,633 EXPENDITURES:

Current:

General government 10,998 - - 5,616 -
Public safety - - - 1,650,140 -
Public works 495,172 - 109,187 - -
Culture and recreation - - - - -
Capital outlay 45,269 - - - -
Debt service:

Interest and fiscal charges - 6,344 - - -
Total expenditures - 557,783 109,187 1,655,756 -

REVENUES OVER
(UNDER) EXPENDITURES 1,067,838 675,697 (59,187) (194) 8,633

OTHER FINANCING
SOURCES (USES):

Transfers in - - 59,187 - -
Transfers out - (1,148,875) - - -
Total other financing
sources (uses) - (1,148,875) 59,187 - -

NET CHANGE IN FUND
BALANCES (81,037) 675,697 - 8,633 (194)
Fund balances (deficits),
beginning of year 1,014,447 1,515,698 - - 61,130
Fund balances (deficits),
end of year 2,191,395 $ 933,410 $ - $ (194) $ 69,763 $
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, 2024
126

ATTACHMENT A

Capital
Projects Fund
Total
Park in Nonmajor
Lieu Governmental
Fees Funds
REVENUES:

Taxes and assessments -$ 868,626 $
Intergovernmental - 5,610,792
Charges for services 120,900 1,074,380
Investment income 183,454 565,308
Miscellaneous - 90,207
Total revenues 8,209,313 304,354
EXPENDITURES:

Current:

General government - 17,027
Public safety - 1,721,497
Public works - 869,356
Culture and recreation - 450,731
Capital outlay - 298,652
Debt service:

Interest and fiscal charges 6,344 -
Total expenditures 3,363,607 -

REVENUES OVER
(UNDER) EXPENDITURES 4,845,706 304,354

OTHER FINANCING
SOURCES (USES):

Transfers in - 120,453
Transfers out (468,434) (3,383,445)
Total other financing
sources (uses) (3,262,992) (468,434)

NET CHANGE IN FUND
BALANCES 1,582,714 (164,080)
Fund balances (deficits),
beginning of year 3,955,968 10,368,657
Fund balances (deficits),
end of year 3,791,888 $ 11,951,371 $

CITY OF STANTON
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2024
127

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 1,070,155 $ 1,067,815 $ 1,075,391 $ 7,576 $ Investment income 5,000 50,000 99,405 49,405
Total revenues 1,075,155 1,117,815 1,174,796 56,981

EXPENDITURES
Current:

Public works 266,790 331,331 264,997 66,334
Capital outlay 35,000 97,020 80,440 16,580
Total expenditures 301,790 428,351 345,437 82,914

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 689,464 773,365 829,359 139,895

OTHER FINANCING SOURCES
(USES)
Transfers out (778,710) (1,271,950) (152,508) 1,119,442 Total other financing sources (uses) (778,710) (1,271,950) (152,508) 1,119,442 Net change in fund balance $ (582,486) (5,345) $ 676,851 1,259,337 $ Fund balance, beginning of year 1,851,322
Fund balance, end of year 2,528,173 $

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, 2024
128

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 385,000 $ 385,000 $ 390,708 $ 5,708 $ Total revenues 385,000 385,000 390,708 5,708

EXPENDITURES
Current:

Public safety 3,000 3,000 1,435 1,565
Total expenditures 3,000 3,000 1,435 1,565

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 382,000 382,000 389,273 7,273

OTHER FINANCING SOURCES
(USES)
Transfers out (382,000) (386,000) (386,000) -
Total other financing sources (uses) (382,000) (386,000) (386,000) - Net change in fund balance (4,000) -$ $ 3,273 7,273 $
Fund balance, beginning of year 4,001
Fund balance, end of year 7,274 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Protective Services Tax Special Revenue Fund
For the Year Ended June 30, 2024
129

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 160,000 $ 171,365 $ 186,159 $ 14,794 $ Investment income - 10,000 16,003 6,003
Total revenues 160,000 181,365 202,162 20,797

EXPENDITURES
Current:

Public safety 35,365 34,000 35,364 1
Total expenditures 34,000 35,365 35,364 1

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 146,000 126,000 166,798 20,798

OTHER FINANCING SOURCES
(USES)
Transfers out (160,000) (160,000) (160,000) -
Total other financing sources (uses) (160,000) (160,000) (160,000) - Net change in fund balance $ (14,000) (34,000) $ 6,798 20,798 $ Fund balance, beginning of year 292,352
Fund balance, end of year 299,150 $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Grant Special Revenue Fund For the Year Ended June 30, 2024
130

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 45,000 $ 55,000 $ 39,423 $ (15,577) $ Investment income 2,000 7,500 10,778 3,278
Total revenues 47,000 62,500 50,201 (12,299)

EXPENDITURES
Current:

General government 1,000 1,000 413 587
Capital outlay 48,000 178,000 150,552 27,448
Total expenditures 49,000 179,000 150,965 28,035
Net change in fund balance $ (116,500) (2,000) $ (100,764) 15,736 $ Fund balance, beginning of year 242,042
Fund balance, end of year 141,278 $

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, 2024
131

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 357,240 $ 364,925 $ 369,728 $ 4,803 $ Total revenues 357,240 364,925 369,728 4,803

EXPENDITURES
Current:

Culture and recreation 439,945 404,105 439,941 4
Total expenditures 404,105 439,945 439,941 4

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (75,020) (46,865) (70,213) 4,807

OTHER FINANCING SOURCES
(USES)
Transfers in 46,865 75,020 61,197 (13,823)
Total other financing sources (uses) 46,865 75,020 61,197 (13,823) Net change in fund balance - -$ $ (9,016) (9,016) $
Fund balance, beginning of year -
Fund balance (deficit), end of year (9,016) $

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, 2024
132

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental - $ 850,000 $ 486,506 $ (363,494) $
Investment income 5,000 10,000 7,968 (2,032)
Total revenues 5,000 860,000 494,474 (365,526)

EXPENDITURES
Current:

Community development 50,000 - - -
Capital outlay 50,000 - 22,391 27,609
Total expenditures 50,000 50,000 22,391 27,609

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 810,000 (45,000) 472,083 (337,917)

OTHER FINANCING SOURCES
(USES)
Transfers out - (500,000) (149,676) 350,324
Total other financing sources (uses) - (500,000) (149,676) 350,324 Net change in fund balance $ 310,000 (45,000) $ 322,407 12,407 $ Fund balance (deficit), beginning of year (135,113)
Fund balance, end of year 187,294 $

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, 2024
133

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 32,000 $ 48,300 $ 46,694 $ (1,606) $
Investment income 500 8,500 4,187 (4,313)
Total revenues 32,500 56,800 50,881 (5,919)

EXPENDITURES
Current:

Culture and recreation 28,490 49,585 10,790 17,700
Total expenditures 49,585 28,490 10,790 17,700

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 28,310 (17,085) 40,091 11,781

OTHER FINANCING SOURCES
(USES)
Transfers in 9,420 1,420 69 (1,351)
Total other financing sources (uses) 9,420 1,420 69 (1,351) Net change in fund balance $ 29,730 (7,665) $ 40,160 10,430 $ Fund balance, beginning of year 76,134
Fund balance, end of year 116,294 $

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, 2024
134

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 703,800 $ 735,000 $ 708,167 $ (26,833) $ Investment income 5,000 45,000 49,191 4,191
Total revenues 708,800 780,000 757,358 (22,642)

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 780,000 708,800 757,358 (22,642)

OTHER FINANCING SOURCES
(USES)
Transfers out 824,595 1,746,365 (917,952) (2,664,317)
Total other financing sources (uses) 824,595 1,746,365 (917,952) (2,664,317) Net change in fund balance $ 1,533,395 2,526,365 $ (160,594) (2,686,959) $ Fund balance, beginning of year 1,043,222
Fund balance, end of year 882,628 $

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, 2024
135

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 46,245 $ 46,245 $ 34,558 $ (11,687) $ Total revenues 46,245 46,245 34,558 (11,687)

EXPENDITURES
Current:

Public safety 46,245 46,245 34,558 11,687
Total expenditures 46,245 46,245 34,558 11,687
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 Public Safety Task Force (PSTF) Special Revenue Fund
For the Year Ended June 30, 2024
136

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 20,000 $ 332,500 $ 329,372 $ (3,128) $ Investment income 44,500 33,000 35,208 2,208
Total revenues 64,500 365,500 364,580 (920)

EXPENDITURES - - - -
Net change in fund balance $ 365,500 64,500 $ 364,580 (920) $ Fund balance, beginning of year 447,454
Fund balance, end of year 812,034 $

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, 2024
137

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Taxes and assessments 763,000 $ 811,800 $ 868,626 $ 56,826 $ Charges for services 205,000 235,600 224,767 (10,833)
Investment income 15,000 60,000 99,880 39,880
Miscellaneous - 33,794 40,207 6,413
Total revenues 983,000 1,141,194 1,233,480 92,286

EXPENDITURES
Current:

General government 9,460 16,260 10,998 5,262
Public works 671,620 705,984 495,172 210,812
Capital outlay 85,000 119,910 45,269 74,641
Debt service:

Principal retirement 135,480 661,983 - 661,983
Interest and fiscal charges 9,000 9,000 6,344 2,656
Total expenditures 910,560 1,513,137 557,783 955,354
Net change in fund balance $ (371,943) 72,440 $ 675,697 1,047,640 $ Fund balance, beginning of year 1,515,698
Fund balance, end of year 2,191,395 $

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, 2024
138

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental 951,695 $ 935,735 $ 1,008,604 $ 72,869 $ Investment income 5,000 40,000 59,234 19,234
Total revenues 956,695 975,735 1,067,838 92,103

EXPENDITURES - - - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 975,735 956,695 1,067,838 92,103

OTHER FINANCING SOURCES
(USES)
Transfers out (956,695) (1,955,160) (1,148,875) 806,285 Total other financing sources (uses) (956,695) (1,955,160) (1,148,875) 806,285 Net change in fund balance (979,425) -$ $ (81,037) 898,388 $ Fund balance, beginning of year 1,014,447
Fund balance, end of year 933,410 $

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, 2024
139

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:

Public works 114,775 114,775 109,187 5,588
Total expenditures 114,775 114,775 109,187 5,588

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (64,775) (64,775) (59,187) 5,588

OTHER FINANCING SOURCES
(USES)
Transfers in 64,775 64,775 59,187 (5,588)
Total other financing sources (uses) 64,775 64,775 59,187 (5,588) 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, 2024
140

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Intergovernmental -$ 3,963,670 $ 1,655,562 $ (2,308,108) $ Total revenues - 3,963,670 1,655,562 (2,308,108)

EXPENDITURES
Current:

General government - - 5,616 (5,616)
Public safety 3,963,670 - 1,650,140 2,313,530
Total expenditures - 3,963,670 1,655,756 2,307,914
Net change in fund balance - -$ $ (194) (194) $
Fund balance, beginning of year -
Fund balance (deficit), end of year (194) $

CITY OF STANTON
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual JAG Grant Special Revenue Fund
For the Year Ended June 30, 2024
141

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 10,000 $ 10,000 $ 8,633 $ (1,367) $ Total revenues 10,000 10,000 8,633 (1,367)

EXPENDITURES
Current:

Community development 5,000 5,000 - 5,000
Total expenditures 5,000 5,000 - 5,000
Net change in fund balance $ 5,000 5,000 $ 8,633 3,633 $ Fund balance, beginning of year 61,130
Fund balance, end of year 69,763 $

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, 2024
142

ATTACHMENT A

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

EXPENDITURES
Capital outlay 6,986,000 19,755,279 4,160,874 15,594,405 Total expenditures 6,986,000 19,755,279 4,160,874 15,594,405

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (19,755,279) (6,986,000) (4,160,874) (15,594,405)

OTHER FINANCING SOURCES
(USES)
Transfers in 6,986,000 19,662,914 4,082,732 15,580,182
Total other financing sources (uses) 6,986,000 19,662,914 4,082,732 15,580,182 Net change in fund balance (92,365) -$ $ (78,142) (14,223) $ Fund balance, beginning of year 181,951
Fund balance, end of year 103,809 $

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, 2024
143

ATTACHMENT A

Original Final Actual Variance with
Budget Budget Amounts Final Budget

REVENUES
Charges for services 100,000 $ 100,000 $ 120,900 $ 20,900 $ Investment income 25,000 100,000 183,454 83,454
Total revenues 125,000 200,000 304,354 104,354

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 200,000 125,000 304,354 104,354

OTHER FINANCING SOURCES
(USES)
Transfers out (3,080,000) (3,692,628) (468,434) 3,224,194 Total other financing sources (uses) (3,080,000) (3,692,628) (468,434) 3,224,194 Net change in fund balance $ (3,492,628) (2,955,000) $ (164,080) 3,328,548 $ Fund balance, beginning of year 3,955,968
Fund balance, end of year 3,791,888 $

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, 2024
144

ATTACHMENT A

145

INTERNAL SERVICE FUNDS

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF INTERNAL REVENUE FUNDS
JUNE 30, 2024
146
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 834,582 $ 19,211 $ 422,452 $ 552,061 $ 1,828,306 $ Restricted cash and investments held
in pension trust - - 4,729,380 - 4,729,380
Receivables:

Accounts - 3,991 - 9,495 13,486
Interest 5,174 - - 3,400 8,574
Prepaids - 30,049 - - 30,049
Due from other governments - - 37,625 - 37,625
Total current assets 839,756 53,251 5,189,457 564,956 6,647,420 Noncurrent assets:

Capital assets - net of accumulated depreciation - - - 224,293 224,293 Total noncurrent assets - - - 224,293 224,293
Total assets 839,756 53,251 5,189,457 789,249 6,871,713

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount from pension plan - - 4,360,075 - 4,360,075 Total deferred outflows of resources - - 4,360,075 - 4,360,075

LIABILITIES
Current liabilities:

Accounts payable 2,786 4,377 20,933 8,898 36,994
Compensated absences payable - - 227,102 1,332 228,434
Total current liabilities 2,786 4,377 248,035 10,230 265,428 Noncurrent liabilities:

Compensated absences payable - - 89,215 - 89,215
Net pension liability - - 9,022,918 - 9,022,918
Total noncurrent liabilities - - 9,112,133 - 9,112,133
Total liabilities 2,786 4,377 9,360,168 10,230 9,377,561

DEFERRED INFLOWS OF RESOURCES
Deferred amount from pension plan - - 1,181,124 - 1,181,124 Total deferred inflows of resources - - 1,181,124 - 1,181,124

NET POSITION
Net investment in capital assets - - - 224,293 224,293
Unrestricted 836,970 48,874 (991,760) 554,726 448,810
Total net position $ 836,970 48,874 $ (991,760) $ 779,019 $ 673,103 $

CITY OF STANTON
Combining Statement of Net Position
All Internal Service Funds
June 30, 2024
147

ATTACHMENT A

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

Charges for services 46,998 $ 361,434 $ 1,640,275 $ 154,033 $ (47,781) $ 2,154,959 $ Miscellaneous 9,592 26,979 - - - 36,571
Total operating revenues 56,590 388,413 1,640,275 154,033 (47,781) 2,191,530 OPERATING EXPENSES:

Equipment maintenance and operation - - - 111,094 - 111,094 Depreciation - - - 92,284 - 92,284
Administrative and personnel services - 2,658,928 - 19,355 (47,781) 2,630,502 Insurance premiums and claims 85,140 394,174 - - - 479,314 Contractual services - - 27,520 - - 27,520
Total operating expenses 85,140 394,174 2,686,448 222,733 (47,781) 3,340,714 OPERATING INCOME (5,761) (28,550) (1,046,173) (68,700) - (1,149,184) NON-OPERATING REVENUES (EXPENSES):

Investment income 37,720 4,286 500,467 25,066 - 567,539 Gain on sale of capital assets - - - 9,495 - 9,495
Total non-operating revenues
(expenses) 37,720 4,286 500,467 34,561 - 577,034
INCOME BEFORE CAPITAL CONTRIBUTIONS (1,475) 9,170 (545,706) (34,139) - (572,150)

CAPITAL CONTRIBUTIONS
Capital contributions from
government activities - - - 116,619 - 116,619
Change in net position (1,475) 9,170 (545,706) 82,480 - (455,531) Net position (deficit), beginning of year 827,800 50,349 (446,054) 696,539 - 1,128,634 Net position (deficit), end of year 836,970 $ 48,874 $ (991,760) $ 779,019 $ - $ 673,103 $

CITY OF STANTON
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2024
148

ATTACHMENT A

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

Cash received from customers $ 56,590 $ 406,336 $ 1,641,838 $ 144,538 $ (47,781) $ 2,201,521 Cash paid to other suppliers of goods or services (83,098) (424,500) 24,316 (105,645) - (588,927) Cash paid to employees for salaries, wages, and benefits - - (1,639,890) (18,963) 47,781 (1,611,072) Net cash provided (used by) operating activities (18,164) (26,508) 26,264 19,930 - 1,522 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets - - - (128,619) - (128,619) Capital contributions - - - 116,619 - 116,619
Proceeds from sale of capital assets - - - 9,495 - 9,495 Net cash provided (used by) capital and
related financing activities - - - (2,505) - (2,505)
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 38,102 4,664 500,467 25,088 - 568,321 Net cash provided (used by) investing activities 4,664 38,102 500,467 25,088 - 568,321 Net increase (decrease) in cash and cash equivalents 11,594 (13,500) 526,731 42,513 - 567,338 Cash and equivalents, beginning of year 822,988 32,711 4,625,101 509,548 - 5,990,348 Cash and equivalents, end of year 834,582 $ 19,211 $ 5,151,832 $ 552,061 $ - $ 6,557,686 $

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

Operating income (loss) $ (28,550) $ (5,761) $ (1,046,173) $ (68,700) -$ (1,149,184) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - - - 92,284 - 92,284
Changes in operating assets and liabilities:
(Increase) decrease in due from other
governments - 17,923 1,563 (9,495) - 9,991
(Increase) decrease in prepaid expense - (30,049) 50,000 - - 19,951 (Increase) decrease in deferred outflows
of resources - - 907,605 - - 907,605
Increase (decrease) in accounts payable 2,042 (277) 1,836 5,449 - 9,050 Increase (decrease) in claims and judgements - - - - - - Increase (decrease) in compensated absences - - 7,934 392 - 8,326 Increase (decrease) in net pension liability - - 689,514 - - 689,514 Increase (decrease) in deferred inflows
of resources - - (586,015) - - (586,015)
Total adjustments 2,042 (12,403) 1,072,437 88,630 - 1,150,706 Net cash provided (used) by operating activities $ (18,164) (26,508) $ 26,264 $ 19,930 $ - $ 1,522 $

CITY OF STANTON
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2024
149

ATTACHMENT A

150
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ATTACHMENT A

151

PRIVATE-PURPOSE TRUST FUNDS

ATTACHMENT A

CITY OF STANTON

DESCRIPTION OF PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2024
152
Successor Agency to the Stanton Redevelopment Agency Fund - 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 (NOCPSC) - 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 1,413,862 $ -$ 1,413,862 $
Restricted assets:

Cash held by fiscal agent 3,736,698 - 3,736,698
Total assets - 5,150,560 5,150,560

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 6,447,345 - 6,447,345
Total deferred outflow of
resources - 6,447,345 6,447,345

LIABILITIES
Current liabilities:

Interest payable 157,152 - 157,152
Bonds payable - current portion 2,745,000 - 2,745,000
Total current liabilities 2,902,152 - 2,902,152
Long-term liabilities:

Bonds payable 46,861,506 - 46,861,506
Total long-term liabilities 46,861,506 - 46,861,506
Total liabilities - 49,763,658 49,763,658

NET POSITION
Restricted for private purpose (38,165,753) - (38,165,753) Total net position (deficit) $ - (38,165,753) $ (38,165,753) $ June 30, 2024

CITY OF STANTON
Combining Statement of Net Position
All Private-Purpose Trust Funds
153

ATTACHMENT A