HomeMy WebLinkAboutFinancial Section - CAFR 09LSD01
CERTIFIED PUBLIC ACCOUNTANTS
• Brandon W. Burrows, C.P.A
• Donald L. Parker, C.P.A
• Michael K. Chu, C.P.A
• David E. Hale, C.P.A, C.F.P.
A Prolessional corporation
• Donald G. Slater, C.P.A
Richard K. Kikuchi, C.P.A
Susan F. Matz, C.P.A.
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Azusa, California
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Azusa, California,
as of and for the year ended June 30, 2009, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City
of Azusa's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of the City of Azusa as of June 30, 2009, and the
respective changes in financial position and cash flows, where applicable, thereof and the respective
budgetary comparison of the General Fund for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
November 23, 2009, on our consideration of the City of Azusa's internal control over financial reporting
and our tests of its compliance with certain laws, regulations, contracts, grant agreements and other
matters. The purpose of that report is 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 internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of
our audit.
The accompanying management's discussion and analysis is not a required part of the basic financial
statements, but is supplementary information required by accounting principles generally accepted in the
United States of America. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on it.
Lance, Soil & Lunghard, LLP 203 North Brea Boulevard • Suite 203 » Brea, CA 92821 - TEL: 714.672.0022 b Fax: 714.672.0331 www.is[cpas.com
41185 Golden Gate Circle Suite 103 - Murrieta, CA 92562 - TEL: 951.304.2728 , Fax: 951.304.3940
LSU
MIMED PO910 ACCOONiANt3
To the Honorable Mayor and Members of the City Council
City of Azusa, California
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying combining and individual fund
statements and schedules are presented for purposes of additional analysis and are not a required part of
the basic financial statements. The accompanying combining, individual nonmajor fund financial
statements, and schedules have been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, are fairly presented in all material respects in relation to the
basic financial statements taken as a whole. The accompanying introductory section and statistical tables
have not been subjected to auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
November 23, 2009
City of Azusa
Management's Discussion and Analysis
June 30, 2009
As management of the City of Azusa, California, we offer readers of the City of Azusa's financial
statements this narrative overview and analysis of the financial activities of the City of Azusa for
the fiscal year ended June 30, 2009. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found on pages i through iv of this report. All amounts, unless
otherwise indicated, are expressed in whole dollars
Financial Highlights
• The assets of the City exceeded its liabilities at the close of fiscal year 2009 by $147,328,908
(net assets). Of this amount $5,139,593 (unrestricted net assets) may be used to meet the
City's ongoing obligations to citizens and creditors.
• Total City assets of $333,722,969 include $168,561,755 or 51% of non -current assets
attributed to capital assets, net of depreciation.
• Total City liabilities of $186,394,061 include $172,992,755 or 93% of long-term liabilities
attributed mainly to tax allocation bonds and certificates of participation.
• As of June 30, 2009, the City's governmental funds reported combined fund balances of
$43,070,059.
• At the end of the current fiscal year, the total fund balance for the General Fund was
decreased by $1,258,740 to $12,415,256 based on restated beginning fund balance.
• Total General Fund revenues received for the year were $38,269,188 and total General Fund
expenditures for the year were $36,638,200, an excess of revenues over expenditures
amounting to $1,630,988. This does not include transfers. Details are located within the
General Fund Budgetary Highlights within the M D & A.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements, which are comprised of three components: 1) government -wide financial statements,
2) fund financial statements, and 3) notes to the basic financial statements. This report also
contains other supplementary information in addition to the basic financial statements
themselves.
1) Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to a
private -sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Azusa is
improving or deteriorating.
The statement of activities presents information showing how the government's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
City of Azusa
Management's Discussion and Analysis
June 30, 2009
result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Azusa 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, Parks and Recreation, and Public
Works. The business -type activity of the City includes the City's Water, Light, Sewer/Wastewater,
and Refuse Contract Utility operations.
The government -wide financial statements include not only the City of Azusa itself (known as the
primary government), but also the legally separate City of Azusa Redevelopment Agency and the
Azusa Public Financing Authority for which the City of Azusa is financially accountable. Financial
information for these component units has been included as an integral part of the primary
government. Separate financial statements are prepared for the City of Azusa Redevelopment
Agency and may be obtained from the City's Administrative Services -Finance Division.
2) 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 of
Azusa, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the City can be divided
into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near -term
financing decisions. Both the governmental fund balance sheet and governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Azusa maintains 23 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, the Redevelopment
Agency Capital Projects Fund and the Redevelopment Agency Debt Service Fund, all of which
are considered to be major funds. Data from the other 20 governmental funds are combined into
a single, aggregate presentation. Individual fund data for each of these non -major governmental
funds is provided in the form of combining statements elsewhere in this report.
The City of Azusa adopts an annual appropriated budget for each of its governmental funds. A
budgetary comparison statement has been provided for the General Fund and all Special
Revenue Funds, Capital Project Funds, and Debt Service Funds to demonstrate compliance with
this budget.
Proprietary funds. The City of Azusa maintains two different types of proprietary funds,
enterprise and internal service funds. Enterprise funds are used to report the same functions
presented as business type activities in the government -wide financial statements. The City uses
an enterprise fund to account for its Water, Light, Sewer/Wastewater and Refuse Contract
Utilities. Internal service funds are an accounting device used to accumulate and allocate costs
City of Azusa
Management's Discussion and Analysis
June 30, 2009
intemally among the City's various functions. The City uses an internal service fund to account
for its Consumer Services, Self Insurance, Central Services, Equipment Replacement, Intra-
Governmental Loan and IT Services activity. Because these services predominantly benefit
governmental rather than business type functions, they have been included within governmental
activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial
statements (business type activities), only in more detail. Information is presented separately in
the proprietary fund statement of net assets and in the proprietary fund statement of revenues,
expenditures, and changes in net assets for the Water and Light funds. The Water and Light
funds are considered to be major funds. The internal service funds are also presented in the
proprietary fund financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government, and the City's role is purely custodial. Fiduciary funds are not reflected
in the government -wide financial statements because the resources of those funds are not
available to support the City's own programs. All assets reported in Fiduciary funds are offset by
a liability; the accrual basis of accounting is used to recognize receivables and payables.
3) Notes to the 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 supplementary information. The combining financial statements and schedules referred
to earlier in connection with non -major governmental funds and internal service funds are
presented immediately following the notes to the basic financial statements.
Government -wide Financial Analysis
The following table presents a summary of the City's assets, liabilities and net assets for its
governmental and business type activities. As noted earlier, a government's net asset position
may serve over time as a useful indicator of its financial position.
City of Azusa - Summary of Net Assets
Governmental Business Type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Cuff ant and other assets $ 79,766,982 $58,756,988 $ 85,394,232 $ 108,112,324 $165,161,214 $166,869,312
Capital assets, net 31,046,966 29,896,230 137,514,789 121,850,282 168,561,755 151,746,512
Total assets 110,813.948 88,653,218 222,909,021 229.962,606 333,722.969 318,615.824
Current liabilities 5,097,116 5,871,023 8,304,190 10,774,251 13,401,306 16,645,274
Long-term liabilities 85.030,532 57,518185 87.962,223 89,296.664 172,992,755 146,814.649
Total liabilities 90,127,648 63,389,208 96,266.413 100,070,915 186,394.061 163,460,123
Net assets:
Invested in capital assets,
net of related debt
19,090,231
18,385,293
57,578,956
32,714,252
76,669,187
51,099,545
Restricted
60,470,894
38,696,105
5,049,234
5,045,495
65,520,128
43,741,600
Unrestricted
(58,874,825)
(31,817,388)
64.014,418
92,131,944
5.139.593
60,314.556
Total net assets $
20,686,300
$25,264,010
$126,642,608 $
129,891,691
$ 147,328.908
$155,155,701
City of Azusa
Management's Discussion and Analysis
June 30, 2009
As of June 30, 2009, the City's assets exceeded liabilities by $147,328,908. This represents a
decrease from the prior years and can be attributed to multiple factors within both governmental
activities, including an increase in restrictions for capital projects and unrestricted deficit balance
within the Redevelopment Agency operation. The decrease in business type activities
unrestricted balance can be attributable to lower revenues received, necessitating use of fund
balance. As evidenced in the Proprietary Funds Statement of Revenues, Expenses and Changes
in Fund Net Assets, Operating Revenues covered Operating Expenses for both the Water and
Light Funds. The non operating categories such as interest expense and franchise fees resulted
in a net asset decrease for the Water Fund ($1,914,383) and Electric Fund ($975,999).
In evaluating the net assets for both governmental and business -type activities in the City of
Azusa, $76,669,187 (52.0%) denotes net assets invested in capital assets (net of related debt)
and $65,520,128 (44.5%) represents resources that are subject to external restrictions. The
remaining balance represents unrestricted net assets of $5,139,593 (3.5%), which may be used
to meet the government's ongoing obligations to citizens and creditors.
The following chart shows the comparison of the three components of net assets for Fiscal Years
2008-09 and 2007-08 (in millions)
160.0
120.0
80.0
40.0
0.0
Invested in Capital
Assets, Net of Restricted Unrestdcted Total Net Assets
Related Debt
p FY 07-08 $75.8 $43.7 $35.7 I $155.2
■ FY 08109 $76.7 $65.5 $5.1 $147.3
Governmental activities. The following condensed summary of activities of the City's
governmental activities for the year ended June 30, 2009 shows total net assets equal
$20,686,300, a decrease of $4,577,710 (18.1%) from the prior year. Revenue and expense
graphs are included to aid the reader in understanding the results of the current year's activities.
Business type activities. Business type activities net assets totaled $126,642,608, a decrease
of $3,249,083 (2.5%) from the prior year. As mentioned earlier, key elements of the decrease in
net assets are higher non -operating costs within the Water and Light Funds.
City of Azusa
Management's Discussion and Analysis
June 30, 2009
Governmental
Business Type
Activities
Activities
Total
2009
2008
2009
2008
2009
2008
Program Revenues:
Charges for services
$ 6,789,565 $
7,236,884 $
53.779,113 $
56,966,550
$ 60,568,678 $
64,203,434
Operating contributions
and grants
5,307,696
2,731,195
-
5,307,696
2,731,195
Capital contributions
and grants
286,875
468,279
-
-
286,875
468,279
General Revenues:
Taxes
31,916,739
28,940,133
586,254
631,036
32,502,993
29,571,169
Motor Vehicle In Lieu
157,012
232,989
-
-
157,012
232,989
Investment Earnings
3,967,549
3,932,541
2,579,973
4,954,367
6.547,522
8,886,908
Gain on Sale of Assets
-
31,993
797
142,130
797
174,123
Miscellaneous
707,536
2,670,687
1,230,835
1,699,176
1.938,371
4,369,863
Total Revenues
49,132,972
46.244,701
58,176.972
64,393,259
107,309,944
110,637,960
Expenses:
General Government
15,047,013
11,582,357
-
-
15,047,013
11.582,357
Public Safety
20,459,265
18,772,865
-
-
20,459,265
18,772,865
Community Development
5,690,458
4,178,449
-
-
5,690,458
4,178,449
Parks and Recreation
4,083,565
3,737,791
-
-
4,083,565
3.737,791
Public Works
4,577,435
6,494,888
-
-
4,577,435
5,494,888
Interest and Fiscal Charges
6,224,638
4,757.069
-
-
6,224,638
4,757,069
Water
-
17,225,088
18,512.062
17.225,088
18,512,062
Light
-
36,939,301
38.827,637
36,939,301
38,827,637
Sewer/Waslewater
-
-
1,995,785
1,653,043
1,995,785
1,653,043
Refuse Contract
-
3,028,270
3,247.734
3.028,270
3.247,734
Total Expenses
56,082,374
489523,419
59,188,444
62,240.476
115,270,818
110,763,895
Increase (decrease) in net assets
before transfers
(6,949,402)
(2278,718)
(1,011,472)
2,152,783
(7,960,874)
(125,935)
Transfers
2,249,387
4,392.846
_ (2,249,387)
(4392846)
Change in Net Assets
(4,700,015)
2,114,128
(3,260,859)
(2,240.063)
(7,960,874)
(125,935)
Net Assets(Deficits)- Beginning
25,264,010
23,468,224
129,891,691
131,978,633
155,155,701
155,446,857
Restatement of Net Assets
122,305
(318,342)
11,776
153,121
134,081
(165,221)
Net Assets(Deficits)- Ending $
20,686.300 $
25.264.010
$ 126,642,608 $
129,891,691 $
147.328,908 $
155,155,701
The City's total revenues are $107,309,944 and the costs of all programs and services are
$115,270,818. Fiscal year 2008-09 revenues decreased by $3,328,016 (-3%), and are lower
than FY 2007 revenues. Expenses increased by $4,506,923 (4.1%) from prior year with
increases in governmental activities. Key factors include:
♦ Investment earnings in governmental activities reflect a modest increase, while a 48%
decrease occurred in business -type activities, primarily due to the expenditures for the
new Water Treatment Plant, and resulting reduction in fund balance. Interest rates
continued to drop and many investments within the City's portfolio were "called", thus re-
invested at lower interest rates.
♦ Interest and fiscal charges increased due to debt obligations for the Redevelopment
Agency.
7
City of Azusa
Management's Discussion and Analysis
June 30, 2009
Revenues by Source -Governmental Activities
Year Ended June 30, 2009
Investment
eamings/other
Motor vehicle in lieu 9.5%
Other taxes u.3/0
2.8%
Utility users taxes
7.0% �\
Business licenses
taxes
3.6%
Franchise taxes
11.8%
Sales taxes ,
12.6%
Key elements of this year's summary of activities are as follows:
Charges for services
13.8%
Contributions &
grants
11.4%
Property taxes
27.5%
♦ Property tax revenue increased by $3,145,724 and Sales tax revenue decreased by a
modest $126,627 from the prior year.
♦ Charges for services revenue decreased by $447,319 with decreases primarily
attributable to General Government and Community Development, despite increases in
the functional areas of Recreation and Public Works.
• While investment earnings received during the fiscal year increased by $35,008, they
represent less of total revenues received.
♦ Operating contributions and grants increased by $2,576,501 from the previous year
primarily due to Public Works activities, and capital contributions and grants decreased
by $181,404 from the previous year.
City of Azusa
Management's Discussion and Analysis
June 30, 2009
Expense by Activities
Year Ended June 30, 2009
Interest & fiscal charges
Public w
8.2°/
Parks and recreation
7.3%
Community development
10.1%
36.5%
General government
26.7%
Total Governmental Activities expenditures increased $7,558,955 (15.6%) over last year
total Governmental Activities expenditures.
Total General Government expenditures increased $3,464,656 (30%) compared to prior
year General Government expenditures.
Total Public Safety expenditures increased $1,686,400 (9%) primarily due to the City's
issuance of taxable pension funding bonds to refund obligations under the PIERS public
safety plan. Negotiated salaries and benefits also account for higher expenditures.
City of Azusa
Management's Discussion and Analysis
June 30, 2009
Financial Analysis of the City's Funds
As noted earlier, the City of Azusa uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on
near -term inflows, outflows and balances of spendable resources. This information is useful in
assessing the City's financing requirements. In particular, unreserved fund balance may serve as
a useful measure of a government's net resources available for spending during the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $43,070,059, an increase of $11,612,700 in comparison with the prior year's
revised fund balance. Fund balance may be reserved to indicate that it is not available for new
spending. This includes $43,079,722 reserved in land held for resale, a category that increased
by over $20.8 million over the prior year's reservation.
The General Fund is the chief operating fund of the City of Azusa. During fiscal year 2008-09, its
fund balance decreased by $1,534,506, primarily as a result of lower revenues realized by the
City, particularly in the taxes and investment income categories. At the end of the current fiscal
year, the unreserved fund balance of the General Fund was $11,914,867, while total fund
balance was $12,415,256.
Within the General Fund, Other Financing Uses remained commensurate with prior year activity
for support to supplement programs such as Senior Nutrition and the Central Garage, while there
was an increase to Other Financing Sources to reflect higher support to funds such as Refuse
and Consumer Services.
The Redevelopment Agency Capital Projects Fund is used to account for capital projects of the
Redevelopment Agency. During FY 2009, its fund balance increased by $837,273, due to
increased cash and investments with the Agency's fiscal agent. At the end of the current fiscal
year, the unreserved fund balance of the Redevelopment Agency Capital Projects Fund reflected
a deficit balance ($13,478,311) while total fund balance was $22,952,996.
The Redevelopment Agency Debt Service Fund is used to account for debt service payments of
the Redevelopment Agency. During FY 2009, its deficit fund balance ($22,651,251) increased a
minor amount from the prior year. Advances from both Enterprise and Internal Service Funds to
the Agency Debt Service Fund account are detailed in Note 11.
In December 2008, the Agency issued $6,715,000 Series A Merged Project Area Tax Allocation
Bonds to finance various redevelopment projects. While in November 2008, $11,580,000 Series
B Merged Project Area Bonds were issued by the Agency. Tax increment revenues secure the
debt service payments for both issues.
10
City of Azusa
Management's Discussion and Analysis
June 30, 2009
Proprietary funds. The City's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
Unrestricted net assets of the City's Enterprise funds at the end of the year amounted to
$63,516,131. Total unrestricted net assets decreased by $2,585,426 (-3.9%) and total net assets
decreased by $3,248,671 (-2.5%) from the previous fiscal year.
Unrestricted net assets of the City's Water Utility at the end of the year amounted to $23,271,000.
Total unrestricted net assets decreased by $154,235 (-0.7%) and total net assets decreased by
$1,889,753 (-3.4%) from the previous fiscal year. Water conservation assisted the utility in
meeting customer water demand, but resulted in reduced revenues.
Unrestricted net assets of the City's Light Utility at the end of the year amounted to $36,776,672.
Total unrestricted net assets decreased by $2,078,377 (-5.4%) and total net assets decreased by
$988,853 (-1.6%) from the previous fiscal year. Decreased revenues resulted in decreased
receivables and impacted current cash and investments.
The following chart highlights total revenue and total expenses for each of the business type
activities for fiscal year end June 30, 2009.
M
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Water
Light
Sewer/ Wastewater
Refuse contract
® Revenue
$16.3
$36.7
$1.7
$3.6
❑ Expenses 1
$17.4
$37.0
$2.0
$3.0
11
City of Azusa
Management's Discussion and Analysis
June 30, 2009
General Fund Budgetary Highlights
Following is a summary of budgetary changes and actual results for General Fund, revenues,
expenditures, and other financing sources:
City of Azusa - General Fund Budgetary Summary
Revenues, Expenditures, and Changes in Fund Balance
June 30, 2009
REVENUES
Taxes
Charges for services
Assessments
Other revenue
Total revenue
EXPENDITURES
Operations
Capital outlay
Debt service
Total expenditures
Excess of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance beginning of year
Fund balance end of year
Variance
with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 25,020,620 $ 24,899,680 $ 23,869,835 $ (1,029,845)
1,420,900 1,442,200 1,307,880 (134,320)
2,965,920 3,075,920 2,930,897 (145,023)
2,774,710 10,315,617 10,160,576 (155041)
32,182,150 39,733,417 38,269,188 (1464229)
28,510,370 36,921,438
36,133,668 787,770
58,215 206,011
161,769 44,242
- 342,763
342,763
28,568,585 37,470,212
36,638,200 832,0
3,613,565 2,263,205 1,630,988 (632,217)
1,005,580
1,080,650
1,265,468
184,818
(4,221,790)
(4,291,440'
(4155,196)
136244
(3,216,210)
(3,210,790)
(2,889 728)
321,062
397,355
(947,585)
(1,258,740)
(311,155)
13,673,996
13,673,996
13,673,996
_
$ 14,071,351 $
12,726,411 $
12,415,256 $
(311 155)
The difference between the original expenditure budget and the final amended expenditure
budget was an increase of $8,901,627 with highlights as follows:
♦ General Government saw increased appropriations for Council approved homeless
voucher program, additional City Attorney retainer costs, carryover appropriation for
business license audits, higher banking charges within City Treasurer operations for an
appropriation increase of $312,250.
• Public Safety reflects a $7,441,462 increase primarily due to the issuance of the 2008
pension bonds and disaster services associated with Area D.
♦ Parks and Recreation increased by $425,837 with staff and operating costs associated
.with the new North Recreation Center (former Armory site), additional landscape
maintenance contract costs due to addition of Rancho Park and other medians, and
higher benefit costs associated with increased part-time employee hours.
♦ Community Development's amended budget increased by $201,236 and includes
carryover funds for Housing Element study and additional contract plan check services,
with the latter offset by higher revenues received in the General Fund.
12
City of Azusa
Management's Discussion and Analysis
June 30,2009
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business type
activities as of June 30, 2009 amounted to $168,561,755 (net of accumulated depreciation). This
investment includes land, construction in progress, land improvements, buildings and structures,
machinery and equipment, automotive equipment and infrastructure.
City of Azusa - Capital Assets
(Net of Accumulated Depreciation)
Governmental
Business Type
Activities
Activities
Total
2009
2008
2009
2008
2009
2008
Land
$ 1,729,956 $
1,729,956
$ 2,988,973 $
2 8888,973
$ 4,718,929 $
4,718,929
Construction in Progress
473,503
2,237,360
51,288,674
42,142,664
51,762,177
44,380,024
Land Improvements
3,059,483
2,803,886
619,766
639,794
3,679,249
3,443,680
Buildings and Structures
6,933,173
6,187,859
15,997,222
15,626,551
22,930,395
21,814,410
Machinery and Equipment
1,371,948
1,278,883
4,214,446
4,536,290
5,586,394
5,815,173
Automotive Equipment
1,307,132
1,162,672
631,958
698,167
1,939,090
1,860,839
Infrastructure
16,171,771
14,495,614
61,773,750
55,217,843
77,945,521
69,713,457
Total
$ 31,046,966 $
29,896,230
$ 137,514,789 $
121,850,282
$ 168,561,755 $
151,746,512
Additional information on the City's capital assets can be found in Note 4 of the notes to the basic
financial statements.
Long-term debt. At the end of the current fiscal year, the City of Azusa had total debt
outstanding of $170,384,657. Of this amount, $85,747,364 is a liability of the Governmental
Activities and $84,637,293 is a liability of the Business Type Activities.
Employee Leave Benefits
Net OPEB Liability
Section 108 Notes Payable
1994 COPS
2003 COPS
2006 Water Revenue Bonds
2003 Tax Allocation Bonds
2005 Tax Allocation Bonds
2007 Tax Allocation Bonds
2008 Tax Allocation Bonds
2008 Taxable Pension Fnding Bd
Developer Agreements
Claims and Judgments Payable
Total
Governmental
Activities
Business Type
Aclivites
Total
2009
2008
2009
2008
2009
2008
$ 3,395,218
$ 2.987,223
$ 1,287,293
$ 1,192,186
$ 4,682,511
$ 4,179,409
2,343,605
-
-
-
2,343,605
-
-
275,000
-
-
-
275,000
-
-
2,030,000
2,130,000
2,030,000
2,130,000
3,695,000
3,910,000
26,470,000
27,695,000
30,165,000
31,605,000
-
-
54,850,000
54,850,000
54,850,000
54,850,000
9,265,000
9,710,000
-
-
9,265,000
9,710,000
9,346,201
9,266,698
-
-
9,346,201
9,266,698
20,150,000
20,570,000
-
-
20,150,000
20,570.000
18,295,000
-
-
-
18,295,000
-
7,215,000
-
-
-
7,215,000
-
8,974,171
8,604,247
-
-
8,974,171
8,604,247
3,068,169
2,600,445
-
-
3,068,169
2,600,445
$ 85,747,364
$ 57,923,613
$ 84,637,293
$ 85,867,186
$ 170,384,657
$ 143.790,799
Additional information on the City's long-term debt can be found in Note 5 of Notes to the Basic
Financial Statements.
13
City of Azusa
Management's Discussion and Analysis
June 30, 2009
Economic Factors and Next Year's Budgets and Rates
The revenue projections for the 2009-10 budget reflected less than 0.6% growth over the prior
year's budget. Many major revenues are anticipated to remain at prior year levels or decrease
due to the economic downturn being experienced throughout the country. Overall, the City
continues to rely on past trends, economic forecasts from outside agencies, such as the State
Department of Finance, State Board of Equalization and the Los Angeles County Assessor's
Office, to predict revenues for entitlement, grants, state subventions, sales tax, and property tax.
General Fund expenditures, including transfers out and capital outlay, decreased by 1.4% for the
2009-10 adopted budget. The City Manager instructed departments to eliminate or reduce
discretionary spending, and cut a minimum of 5% from the prior year Maintenance & Operations
budget. Overall, departments had budgetary savings which helped offset the decreased
revenues associated with the economic downturn. Any appropriations that are not considered
"continuing", such as those identified for certain capital or fixed asset purchases, have not been
carried forward as appropriations into the new fiscal year.
The City strives to maintain a high quality of services while adopting a balanced budget. For
fiscal year 2009-10, the City adopted a balanced budget with a surplus of $150,215 for the
General Fund. The adopted budget presents a financial plan that maintains the required services
within the City's operating revenue base and is not reliant on one-time sources of revenues to pay
for day-to-day services. The City Council held public hearings to receive community input on
proposed rate adjustments for water and refuse. A two-tier water rate increase has been adopted
by the Council resulting in an in 18% anticipated increase for FY 2009-10 and additional 15.6%
increase effective July 1, 2010. Compared with fourteen other neighboring cities and water
agencies, Azusa had been the lowest of the fourteen, and still remains lower than many other
agencies within the San Gabriel Valley. Refuse rates for single family residential and commercial
customers will decrease, while multi -family residential rates increase with proceeds paying for
Athens Services trash and recycling collection services. In October 2009, the City Council
approved a 9.3% across-the-board electric rate increase (effective December 1, 2009) and
authorized the scope for a cost of services study to determine any additional rate adjustments for
fiscal year 2010-11 and beyond.
The State of California fiscal crisis necessitated the issuance of $2.6 billion in registered warrants
(IOU's) for the first two months of the 2009-10 fiscal year. Payments to local agencies for
Highway User's Tax and Traffic Congestion Relief Funds have been suspended until 2010. In
July 2009, the legislature approved the borrowing of up to eight percent of local property tax
under Proposition 1A (voter approved in 2004). This, coupled with additional legislation affecting
redevelopment agencies, will have an impact on future budget development and the City and
Agency's financial health. Record unemployment remains a problem with rates within the Los
Angeles -Long Beach -Glendale Metropolitan Division at 11.3% in June 2009. City staff will
carefully be monitoring any legislative action that could impact the financial condition in Azusa.
Request for Information
This financial report is designed to provide a general overview of the financial position of the City
of Azusa 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 Administrative Services -Finance, 213 E. Foothill Blvd., Azusa, CA 91702.
14
CITY OF AZUSA
STATEMENT OF NET ASSETS
JUNE 30, 2009
Assets:
Cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Internal balances
Prepaid costs
Deposits
Inventories
Deferred charges
Land held for resale
Restricted assets:
Cash and investments
Cash with fiscal agent
Cash held for rate stabilization
Net pension asset
Capital assets not being depreciated
Capital assets, net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Unearned revenue
Deposits payable
Due to other governments
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Community development projects
Capital projects
Debt service
Pension benefits
Unrestricted
Total Net Assets
See Notes to Financial Statements 15
Primary Government
Governmental
Business -Type
Activities
Activities
Total
$ 25,121,443
$ 33,855,430
$ 58,976,873
801,159
6,647,566
7,448,725
2,446,783
-
2,446,783
2,667,665
80,515
2,748,180
93,194
163,552
256,746
(17,816,104)
17,816,104
-
344,625
19,777
364,402
910
115,780
116,690
154,889
1,757,779
1,912,668
2,324,212
1,189,168
3,513,380
43,079,722
-
43,079,722
30,820
2,643,605
2,674,425
13,418,494
11,788,331
25,206, 825
-
9,316,625
9,316.625
7,099,170
-
7,099,170
2,203,459
54,277,647
56,481,106
28,843,507
83,237,142
112,080,649
110,813,948
222,909,021
333,722,969
1,743,793
2,883,178
4,626,971
1,494,150
399,657
1,893,807
1,581,959
2,015,673
3,597,632
5,460
-
5,460
115,676
2,985,366
3,101,042
156,078
20,316
176,394
4,906,421
2,271,445
7,177,866
80,124,111
85,690,778
165, 814,889
90,127,648
96,266,413
186,394,061
19,090,231
21,570,226
31,318,583
482,915
7,099,170
(58,874,825)
$ 20,686,300
57,578,956
5,049,234
64,014,418
$ 126,642,608
76,669,187
21,570,226
31,318,583
5,532,149
7,099,170
5,139,593
$ 147,328,908
CITY OF AZUSA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2009
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Expenses
Services
and Grants
and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government
$ 15,047,013
$ 3,418,393
$ 30,413
$ _
Public safety
20,459,265
681,943
278,064
139,876
Community development
5,590,458
1,358,872
617,901
Parks and Recreation
4,083,665
1,127,077
593,490
Public works
4,577,435
203,280
3,787,828
147,000
Interest on long-term debt
6,224,638
-
Total Governmental Activities
56,082,374
6,789,565
5,307,696
286,875
Business -Type Activities:
Water
17,225,088
14,805,241
_
_
Light
36,939,301
34,496,805
_
Sewer/Wastewater
1,995,785
1,508,325
Refuse Contract
3,028,270
2,968,742
Total Business -Type Activities
59,188,444
53,779,113
Total Primary Government
$ 115,270,818
$ 60,568,678
$ 5,307,696
$ 286,875
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Utility users tax
Othertaxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Gain on sale of capital asset
Transfers
Total General Revenues, Contributions,
Special Items and Transfers
Change in Net Assets
Net Assets at Beginning of Year
Restatement of Net Assets
Net Assets at End of Year
See Notes to Financial Statements 16
Net (Expenses) Revenues and Changes in Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ (11,598,207) $
- $ (11,598,207)
(19,359,383)
- (19,359,383)
(3,713,685)
- (3,713,685)
(2,362,998)
- (2,362,998)
(439,327)
- (439,327)
(6,224,638)
- (6,224,638)
(43,698,238) (43,698,238)
- (2,419,847)
(2,419,847)
- (2,442,496)
(2,442,496)
- (487,460)
(487,460)
_ (59,528)
(59,528)
(5,409,331) (5,409,331)
(43,698,238) (5,409,331) (49,107,569)
13,518,253
586,254
14,104,507
226,268
-
226,268
6,202,335
-
6,202,335
5,821,976
-
5,821,976
1,755,831
-
1,755,831
3,260,191
-
3,260,191
1,131,885
-
1,131,885
157,012
-
157,012
3,967,549
2,579,973
6,547,522
707,536
1,230,835
1,938,371
-
797
797
2,249,387
(2,249,387)
38,998,223
2,148,472
41,146,695
(4,700,015)
(3,260,859)
(7,960,874)
25,264,010
129,891,691
155,155,701
122,305
11,776
134,081
$ 20,686,300
$ 126,642,608
$ 147,328,908
See Notes to Financial Statements 17
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30. 2009
Capital
Debt
Projects Fund
Service Fund
Redevelopment
Redevelopment
General
Agency
Agency
Assets:
Pooled cash and investments
$
1,344,410
$ 2,241,965
$ 771,503
Receivables:
Accounts
Taxes
272,969
6,010
131,000
Notes and loans
1,695,072
19,244
-
1,142,500
452,097
Accrued interest
7,160
6,469
29,550
Prepaid costs
326,256
495
_
Deposits
-
Due from other funds
11,503,906
_
641,017
Inventories
154,889
Land held for resale
-
36,025,840
_
Restricted assets:
Cash and investments
_
Cash and investments with fiscal agents
244,978
3,992,493
4,063,512
Total Assets
$
15,568,884
$ 43,415,772
$ 61088,679
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$
424,236
$ 208,363
$ 12,289
Accrued liabilities
1,320,868
33,485
Deferred revenues
436,553
737,528
641,342
Unearned revenues
-
5,460
Deposits payable
-
115,676
Due to other governments
-
156,078
Due to other funds
640,971
19,362,264
705,295
Advances from other funds
331,000
27,224.926
Total Liabilities
3,153,628
_ 20,462,776
28,739,930
Fund Balances:
Reserved:
Reserved for prepaid costs
326,256
495
Reserved for land held for resale
-
36,025,840
_
Reserved for notes and loans
19,244
404,972
Reserved for inventory
154,889
_
_
Reserved for deposits
_
Unreserved:
Unreserved, reported in nonmajor:
Special revenue funds
Capital projects funds
Debt service funds
Designated for capital improvement projects
1,000,000
_
Designated for compensated absences
2,306,656
Designated for library foundation
842
_
Designated for emergencies
1,000,324
Undesignated
7,607,045
(13,478,311)
(22,651,251)
Total Fund Balances
12,415,256
22,952,996
(22,651,251)
Total Liabilities and Fund Balances
$
15,568.884
$ 43,415,772
$ 6,088,679
See Notes to Financial Statements 18
CITY OF AZUSA
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2009
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Inventories
Land held for resale
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Advances from other funds
Total Liabilities
Fund Balances:
Reserved:
Reserved for prepaid costs
Reserved for land held for resale
Reserved for notes and loans
Reserved for inventory
Reserved for deposits
Unreserved:
Unreserved, reported in nonmajor:
Special revenue funds
Capital projects funds
Debt service funds
Designated for capital improvement projects
Designated for compensated absences
Designated for library.foundation
Designated for emergencies
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
See Notes to Financial Statements 19
Other
Total
Governmental
Governmental
Funds
Funds
$ 17,116,701
$ 21,474,579
364,597
774,576
299,614
2,446,783
1,500,073
2,661,817
42,948
86,127
1,241
327,992
910
910
3,277,693
16,422,616
-
154,889
7,053,882
43,079,722
30,820
30,820
5,117,511
13,418,494
$ 34,805,990
$ 99,879,325
$ 925,384
$ 1,570,272
81,374
1,435,727
1,667,510
3,482,933
-
5,460
115,676
-
156,078
192,464
20,900,994
1,586,200
29,142,126
4,452,932 56,809,266
1,241
327,992
7,053,882
43,079,722
1,936
426,152
-
154,889
910
910
21,491,624
21,491,624
1,320,550
1,320,550
482,915
482,915
-
1,000,000
-
2,306,656
842
-
1,000,324
-
(28,522,617)
30,353,058
43,070,059
$ 34,805,990 = $ 99,879,325
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF AZUSA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2009
Fund balances of governmental funds $ 43,070,059
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity.
30,045,588
Bond issuance cost is an expenditure in the governmental funds, but it is
a deferred charge in the statement of net assets.
2,324,212
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Long-term liabilities
(76,223,540)
Compensated Absences
(3,183,001)
Governmental funds report all pension and OPEB contributions as expenditures,
however in the Statement of Net Assets any excesses or deficiencies in contributions in
relation to the Annual Required Contribution (ARC) are recorded as a asset or liability.
Net OPEB Liability
(2,343,605)
Net Pension Asset
7,099,170
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds.
(1,581,959)
Deferred revenue in the governmental fund financial statements
relate to revenue which is considered unavailable; however, in the statement
of net assets these items are recognized as revenue.
3,482,933
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net assets.
17,996,443
Net assets of governmental activities
$ 20,686,300
See Notes to Financial Statements 21
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2009
Capital Debt
Projects Fund Service Fund
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Bond issuance costs
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Bond premium
Bond discount
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as
previously reported
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
See Notes to Financial Statements 22
Redevelopment
Redevelopment
General
Agency
Agency
$ 23,869,835
$ -
$ 6,111,012
2,930,897
_
_
381,993
_
301,274
_
1,307,880
_
_
635,810
273,812
73,999
967,012
_
14,160
_
438,254
188,063
_
30,847,115
461,875
6,185,011
7,553,290 1,800,428 1,619,648
23,006,721 _ _
1,560,002 3,084,304
3,161,128 _ _
852,527 _
161,769 518,627 _
- - 865,000
19,860 592,447 4,476,937
322,903 - 555,678
36,638,200 5,995,806 7,517,263
(5,791,085) (5,533,931) (1,332,252)
1,265,468 6,950,782 947,352
(4,155,196) (579,578) (18,046,426)
7,215,000 _ 18,664,924
207,073 -
(530,483)
4,532,345 6,371,204 1,035,367
(1,258,740) 837,273 (296,885)
13,949,762 22,115,723 (22,354,366)
(275,766)
13,673,996 22,115,723 _ (22,354,366)
$ 12,415,256 $ 22,952,996 $ (22,651,251)
CITY OF AZUSA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
YEAR ENDED JUNE 30, 2009
Revenues:
Taxes
Assessments
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Contributions
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Bond issuance costs
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Long-term debt issued
Bond premium
Bond discount
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as
previously reported
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
See Notes to Financial Statements 23
Other
Total
Governmental
Governmental
Funds
Funds
$ 1,284,220
$ 31,265,067
-
2,930,897
-
381,993
5,658,829
5,960.103
1,426,893
2,734,773
875,803
1,859,424
-
967,012
92,290
106,450
87,230
713,547
9,425,265
46,919,266
1,517,219
12,490,585
3,942,072
26,948,793
547,626
5,191,932
446,710
3,607,838
2,995,295
3,847,822
2,812,700
3,493,096
490,000
1,355,000
209,576
5,298,820
-
878,581
12,961,198
63,112,467
(3,535,933) (16,193,201)
16,761,465 25,925,067
(894,480) (23,675,680)
25,879,924
207,073
(530,483)
15,866,985 27,805,901
12,331,052 11,612,700
18,023,935 31,735,054
(1,929) (277,695)
18,022,006 31,457,359
$ 30,353,058 $ 43,070,059
CITY OF AZUSA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2009
Net change in fund balances - total governmental funds $ 11,612,700
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
1,001,459
Changes in long-term debt are reported as revenues or expenditures in the
governmental funds, but the changes increase or decrease long-term
liabilities in the statement of net assets.
(24,293,022)
Debt issuance costs are expenditures in governmental funds, but these costs
are capitalized on the statement of net assets.
767,973
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
(723,702)
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
(392,788)
Governmental funds report all contributions in relation to the annual required
contribution (ARC) for Pension and OPEB as expenditures, however in the
Statement of Activities only the ARC is an expense.
Net OPEB Liability
(2,343,605)
Net Pension Asset
7,099,170
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
1,137,350
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities.
1,434,450
Change in net assets of governmental activities
See Notes to Financial Statements 24
CITY OF AZUSA
BUDGETARY COMPARISON STATEMENT
GENERALFUND
YEAR ENDED JUNE 30, 2009
Variance with
Final Budget
Budget Amounts Actual Positive
_ Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated $ 13,673,996 $ 13,673,996 $ 13,673,996 $
Resource 11 If )•
s n ows .
Taxes
25,020,620
24,899,680
23,869,835
(1,029,845)
Assessments
2,965,920
3,075,920
2,930,897
(145,023)
Licenses and permits
247,250
349,200
381,993
32,793
Intergovernmental
515,390
348,110
301,274
(46,836)
Charges for services
1,420,900
1,442,200
1,307,880
(134,320)
Use of money and property
1,132,000
1,139,000
635,810
(503,190)
Fines and forfeitures
723,470
844,970
967,012
122,042
Contributions
5,600
5,600
14,160
8,560
Miscellaneous
151,000
206,664
438,254
231,590
Transfers in
1,006,580
1,080,650
1,265,468
184,818
Long-term debt issued
-
7,215,000
7,215,000
Bond premium
-
207,073
207,073
Amounts Available for Appropriation
46,861,726
54,488,063
53,208,652
(1,279,411)
Charges to Appropriation (Outflow):
General government
City Council
142,985
196,615
159,774
36,841
City Attorney
231,000
286,800
257,797
29,003
Administration
514,145
519,690
524,340
(4,650)
Promotion / Membership
168,235
172,015
167,362
4,653
City Clerk
481,790
500,305
502,299
(1,994)
Library Services - General
1,313,380
1,353,600
1,303,714
49,886
Library Services - Youth
8,650
8,650
8,048
602
Finance - Accounting
1,102,135
1,137,550
1,121,283
16,267
Cash Management
85,140
121,140
113,444
7,696
Purchasing
326,450
328,495
321,373
7,122
Printing Services
17,115
17,115
9,386
7,729
Human Resources
353,395
371,465
253,490
117,975
City-wide
2,721,375
2,721,376
2,594,159
127,216
Admin Services / Business License
187,865
213,975
216,821
(2,846)
Public safety
Police
14,869,270
15,080,139
14,979,443
100,696
Crossing Guard
112,400
6,035
5,748
287
Emergency Services
137,850
141,565
138,786
2,779
Police Department Contracts
638,840
754,590
694,601
59,989
Area D
100,000
98,414
1,586
Pension - Safety
-
7,099,170
7,089,729
9,441
Community development
Planning
523,325
623,735
566,672
57,063
Building Regulation
510,270
580,840
560,643
20,197
Code Enforcement
415,045
445,301
432,687
12,614
Parks and recreation
Recreation
1,118,925
1,421,080
1,404,087
16,993
Parks Maintenance
1,373,090
1,483,817
1,495,787
(11,970)
Senior Programs
220,680
232,785
236,571
(3,786)
Women's Club
32,885
33,735
24,683
9,052
Public works
Engineering Service
235,765
241,258
170,721
70,537
Graffiti Removal
124,960
137,260
96,119
41,141
Facilities Maintenance
543,405
591,338
585,687
5,651
Capital outlay
58,215
206,011
161,769
44,242
Debt service:
Interest and fiscal charges
-
19,860
19,860
-
Bond issuance costs
-
322,903
322,903
-
Transfers out
4,221,790
4,291,440
4,155,196
136,244
Total Charges to Appropriations
32,790,375
41,761,652
40,793,396
968,256
Budgetary Fund Balance, June 30
$ 14,071,351
$ 12,726,411
$ 12,4 55.256
$ (311,155)
See Notes to Financial Statements
25
CITY OF AZUSA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2009
Business -Type Activities - Enterprise Funds Governmental
Other Activities.
Enterprise Internal
Assets: Water Light Funds Totals Service Funds
Current:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Prepaid costs
Deposits
Due from other funds
Inventories
Restricted:
Cash and investments
Cash with fiscal agent
Cash held for rate stabilization
Total Current Assets
Noncurrent:
Deferred debt issuance costs
Advances to other funds
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Accrued interest
Deposits payable
Due to other governments
Due to other funds
Accrued compensated absences
Accrued claims and judgments
Bonds, notes, and loans payable
Total Current Liabilities
Noncurrent:
Accrued compensated absences
Accrued claims and judgments
Bonds, notes, and loans payable
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total Net Assets
$ 24,195,856 $ 5,228,770 $ 3,488,396 $ 32,913,022 $ 4,589,272
2,065,424
4,014,899
563,167 6,643,490
30,659
733
75,957
76,690
9,673
40,361
26,721
9,694 76,776
93,843
4,772
8,469
- 13,241
23,169
36,322
79,458
- 115,780
-
-
5,520,915
- 5,520,915
-
184
1.757,595
- 1,757,779
-
- 2,643,605
- 2,643,605 -
9,588,439 1,906,772
293,120 11,788,331 -
- 9,316,625
9,316,625
35,932,091 30,579,786
4,354,377 70,866,254 4,746,616
838,543
254,894
95,731
1,189,168
-
180,429
12,114,760
-
12,295.189
16,846,937
95,710,047
31,986,453
8,945,011
136,641,511
1,874,656
96,729,019
44,356,107
9,040,742
150,125,868
18,721,593
$132,661,110
$ 74,935,693
$ 13,395,119
$220,992,122
$ 23,468,209
$ 1,041,112
$ 1,198,611 $
509,450
$ 2,749,173 $ 307,526
112,675
128,686
40,970
282,331 175,749
1,716,148
252,272
47,253
2.015,673 -
822,818
2,161,059
15
2,983,892 1,474
20,316
-
-
20,316 -
-
-
42,537
206,451
195,915
54,535
456,901
245,265
"
1,122,804
1,095,000
455,000
105,000
1,655,000
5,014,520
4,391,543
757,223
10,163,286
1,895,355
172,104
329,453
36,306
537,863
259,481
"
1,945,365
73,662,819
9.494,386
1,862,725
85,019,930
73,834,923
9,823,839
1,899,031
85,557,793
2,204,846
78,849,443
14,215,382
2,656,254
95,721,079
4,100,201
27,691,325
22,037,067
6,977,286
66,705,678 1,874,656
2,849,342
1,906,772
293,120
5,049,234 -
23,271,000
36,776,672
3,468,459
63,516,131 17,493,352
53,811,667
60,720,511
10,738,865
125,271,043 19,368,008
Total Liabilities and Net Assets $132,661,110 $ 74,935,893 $ 13,395,119 $220,992,122 $ 23,468,209
Reconciliation of Net Assets to the Statement of Net Assets
Net Assets per Statement of Net Assets - Proprietary Funds $125,271,043
Prior years' accumulated adjustment to reflect the consolidation of
internal service funds activities related to the enterprise funds 1,371,977
Current years' adjustments to reflect the consolidation of internal
service activities related to enterprise funds
Net Assets per Statement of Net Assets
See Notes to Financial Statements 26
(412)
$126,642,608
CITY OF AZL SA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2009
Operating Revenues:
Sales and service charges
Interdepartmental charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Cost of sales and services
Source of supply
Pumping
Transmission/collection
Treatment
Refuse collection
Claims expense
Administration and general
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Taxes
Intergovernmental
Interest revenue
Interest expense
Special franchise fees
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Assets
Net Assets=
Beginning of Year, as
previously reported
Restatements
Beginning of Fiscal Year, as restated
Business -Type Activities -Enterprise Funds
Governmental
Other
Activities -
Enterprise
Internal
Water
Light
Funds
Totals
Service Funds
$ 14,805,241
$ 34,496,805
$ 4,477,067
$ 53,779,113
$ 10.886,058
389,040
584,713
-
973,753
-
43,928
202,835
10,319
257,082
601,053
15,238,209
35,284,353
4,487,386
55,009,948
11,487,111
2,967,427
105,320
3,072,747
946,236
23,106,698
24,052,934
26,762
-
26,762
1,423,016
2,962,657
4,385,673
1,518,931
3,028,270
670,099
- - - 1,847,990
6,271,731 5,886,261 - 12,157,992 8,083,294
1,761,398 1,228,752. 325,309 3,315,459 316,175
13,706,737 339289,688 4,872,510 51,868,935 10,917,558
1,531,472 1,994,665 (385,124) 3,141,013 569,553
586,254 586,254
- - 30,413
1,035,481 1,388,342 156,150 2,579,973 1,045,943
(3,361,367) (534,295) (120,611) (4,016.273) -
(283,993) (3,183,707) (30,934) (3,498,634) -
- 797 - 797 (16,061)
(2,609,879) (2,328,863) 590,859 (4,347,883) 1,060,295
(1,078,407) (334,198) 205,735 (1,206,870) 1,629,848
150,000 150,000
(835,976) (641,801) (725,800) (2,203,577) (195,810)
(1,914,383) (975,999) (370,065) (3,260,447) 1,434,038
55,701,420 61,709,364 11,108,930 128,519,714 17,533,970
24,630 (12,854) - 11,776 400,000
55,726,050 61,696,510 11,108,930 128,531,490 17,933,970
End of Fiscal Year $ 53,811,667 $ 60,720,511 $ 10,738,865 $ 125,271,043 $ 19,368,008
Reconciliation of Changes in Net Assets to the Statement of Activities:
Changes in Net Assets, per the Statement of Revenues,
Expenses and Changes in Fund Net Assets - Proprietary Funds $ (3,260,447)
Adjustme: nt to reflect the consolidation of current fiscal year
interrb at service funds activities related to enterprise funds (412)
Changes in Net Assets of Business -Type Activities per Statement of Activities $ (3,260,859)
See Notes to Financial Statements 27
586,254 586,254
- - 30,413
1,035,481 1,388,342 156,150 2,579,973 1,045,943
(3,361,367) (534,295) (120,611) (4,016.273) -
(283,993) (3,183,707) (30,934) (3,498,634) -
- 797 - 797 (16,061)
(2,609,879) (2,328,863) 590,859 (4,347,883) 1,060,295
(1,078,407) (334,198) 205,735 (1,206,870) 1,629,848
150,000 150,000
(835,976) (641,801) (725,800) (2,203,577) (195,810)
(1,914,383) (975,999) (370,065) (3,260,447) 1,434,038
55,701,420 61,709,364 11,108,930 128,519,714 17,533,970
24,630 (12,854) - 11,776 400,000
55,726,050 61,696,510 11,108,930 128,531,490 17,933,970
End of Fiscal Year $ 53,811,667 $ 60,720,511 $ 10,738,865 $ 125,271,043 $ 19,368,008
Reconciliation of Changes in Net Assets to the Statement of Activities:
Changes in Net Assets, per the Statement of Revenues,
Expenses and Changes in Fund Net Assets - Proprietary Funds $ (3,260,447)
Adjustme: nt to reflect the consolidation of current fiscal year
interrb at service funds activities related to enterprise funds (412)
Changes in Net Assets of Business -Type Activities per Statement of Activities $ (3,260,859)
See Notes to Financial Statements 27
150,000 150,000
(835,976) (641,801) (725,800) (2,203,577) (195,810)
(1,914,383) (975,999) (370,065) (3,260,447) 1,434,038
55,701,420 61,709,364 11,108,930 128,519,714 17,533,970
24,630 (12,854) - 11,776 400,000
55,726,050 61,696,510 11,108,930 128,531,490 17,933,970
End of Fiscal Year $ 53,811,667 $ 60,720,511 $ 10,738,865 $ 125,271,043 $ 19,368,008
Reconciliation of Changes in Net Assets to the Statement of Activities:
Changes in Net Assets, per the Statement of Revenues,
Expenses and Changes in Fund Net Assets - Proprietary Funds $ (3,260,447)
Adjustme: nt to reflect the consolidation of current fiscal year
interrb at service funds activities related to enterprise funds (412)
Changes in Net Assets of Business -Type Activities per Statement of Activities $ (3,260,859)
See Notes to Financial Statements 27
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2009
_ Business -Type Activities - Enterprise Funds
Governmental
Other
Activities -
Enterprise
Internal
Cash Flows from Operating Activities:
Water
Light
Funds
Totals
Service Funds
Cash received from customers and users
$ 14,929,513
$35,162,792
$ 4,532,352
$54,624,657
$ 11,466,688
Cash received from/(paid to) interfund service provided
389,040
584,713
-
973,753
-
Cash paid to suppliers for goods and services
(7,398,507)
(26,075,307)
(3,889,661)
(37,363,475)
(2,187,451)
Cash paid to employees for services
(6,190,095)
(5,824,860)
(900,271)
(12,915 226)
(7,989,774)
Net Cash Provided (Used) by Operating Activities
1,729,951
3,847,338
(257,580)
5,319,709
1,289,463
Cash Flows from Non -Capital
Financing Activities:
Cash transfers out
(835,976)
(641,801)
(725,800
(2,203,577)
(195,810)
Cash transfers in
-
150,000
150,000
400,000
Cash received from other funds
(220,832)
-
(220,832)
-
Cash payment made to other funds
-
(5,200,000)
-
(5,200,000)
(8,376)
Advance to other funds
14,209
200,266
-
214,475
(1,593,258)
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Special franchise fees
Taxes
Intergovernmental grants
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Repayment of loans
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
(821,767) (5,862,367) (575,800) (7,259,934) (1,397,444)
(17,128,171)
(1,876,602)
(213,326)
(19,218,099) (323,240)
(790,000)
(435,000)
(100,000)
(1,325,000) -
(3,444,891)
(516,866)
(118,062)
(4,079,819) -
(283,993)
(3,183,707)
(30.934)
(3,498,634) -
-
-
586,254
586,254 -
30,413
(21,647,055) (6,012,175) 123,932 (27,535,298) _ (292,827)
(209) (3,114) 125 (3,198) 855
1,057,245 1,449,715 164,179 2,671,139 1,133,419
1,057,036 1,446,601 164,304 2,667,941 1,134,274
(19,681,835) (6,580,603) (545,144) (26,807,582) 733,466
53,466,130 25,676,375 4,326,660 83,469,165 3,855,806
$ 33,784,295 $19,095,772 $ 3,781,516 $56,661,583 $ 4,589,272
See Notes to Financial Statements 28
CITY OF AZUSA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2009
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in deposits receivable
(Increase) decrease in prepaid expense
(Increase) decrease in inventories
Increase (decrease)in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in due to other governments
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
Increase (decrease) in claims and judgments
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Business -Type Activities - Enterprise Funds
Other
Governmental
Activities -
Enterprise Internal
Water Light Funds Totals Service Funds
$ 1,531,472 $ 1,994,665 $ (385,124) $ 3,141,013 $ 569,553
1,761,398
1,228,752
325,309
3,315,459
316,175
160,723
773,008
44,951
978,682
(20,341)
3
3
(1,975)
285,656
-
283,681
(12,107)
(184)
(111,752)
-
(111,936)
(1,715,770)
(74,536)
(268,439)
(2,058,745)
(124,979)
41,384
39,761
12,484
93,629
58,321
(6,973)
-
-
(6,973)
-
(19,875)
(280,048)
15
(299,908)
(82)
(60,504)
(29,808)
-
(90,312)
-
40.252 21,640 13,224 467,724
75,116 35,199
198,479 1,852,673 127,544 2,178,696 719,910
$ 1,729,951 $ 3,847,338 $ (257,580) $ 5,319,709 $ 1,289,463
Non -Cash Investing, Capital, and Financing Activities:
Gain/(Loss) on disposition of capital assets $ - $ - $
Amortization of bond discount/premium 111,849 (2,111)
Amortization of deferred debt issuance costs 40,175 23,910
See Notes to Financial Statements 29
- $ - $ (18,342)
(5,190) 104,548 -
7,977 72,062 -
CITY OF AZUSA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2009
Assets:
Pooled cash and investments
Receivables:
Accounts
Taxes
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other governments
Total Liabilities
See Notes to Financial Statements 30
Agency
Fund
$ 1,478,374
222
38,987
$ 1,517,583
$ 1,442,991
35,006
31,417
8,169
$ 1,517,583